Overview of Performance in Six Months Ended
September 30, 2023 and Outlook on Achieving the
Medium-term Management Plan

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I am Kato.
I will begin with an overview of the financial results and the status of each businesssegment.
Thank you.

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First, let's talk about consolidation.

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There are four highlight points for this term.
Total transaction volume exceeded JPY2 trillion for the first time in H1.
Operating income declined 17% to JPY18.7 billion, JPY3.7 billion less than the previous
year. Excluding the liquidated accounts receivables, operating income actually
decreased by JPY1.2 billion.
Net income fell 14% to JPY11.5 billion, JPY1.9 billion below the previous year.
The initial full-year forecast has been revised based on the progress of Fintech.
The contents will be explained in the Fintech context.

6Changes in the financial indicators.
Total group transaction volume was JPY2,172.5 billion, continuing a record high. This
was largely due to an increase in Fintech transaction volume.
Operating income was JPY18.7 billion, JPY3.7 billion lower than the previous year.
The change in the timing of funding through liquidated accounts receivables from thecurrent period was a factor in the JPY2.5 billion decrease in H1, but excluding theeffect of this liquidated accounts receivables, the decrease was JPY1.2 billion.
The reasons for the decrease in profit will be explained in the Fintech overview.
Net income was JPY11.5 billion, JPY1.9 billion lower than the previous year.
In comparison with the case of liquidated accounts receivables at the same level as in
the previous year, the results were comparable to those of the previous year.

7I will discuss the breakdown of changes in operating income.
Operating income for the current fiscal year was JPY18.7 billion, a decrease of
JPY3.7 billion from the previous year.
Excluding the JPY2.5 billion impact of liquidated accounts receivables in Fintech, theactual decrease is JPY1.2 billion.
The breakdown was minus JPY1.3 billion in Fintech, despite an increase of JPY0.8
billion in Retailing segment,
And minus JPY0.7 billion in corporate elimination, mainly due to an increase in humancapital investment, including granting shares to employees.

8I will provide a detailed explanation of liquidated accounts receivables.
Starting this fiscal year, the liquidated accounts receivables, which was previously
conducted once a year in H1, will be conducted on a quarterly basis in order toimprove capital efficiency and equalize gains on transfers.
As a result, the transfer was a factor in the JPY2.5 billion decrease in profit for H1 ofthe current fiscal year.
However, for the full year, the transfer is expected to have almost no impact on profit
and loss, as it will be implemented in Q3 and Q4, which were not implemented lastyear, and a gain equivalent to the amortization amount will be recorded on a
cumulative basis.

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Impact ofliquidated
accounts
receivables

Next is revenue and operating income by segment.
Retailing segment sales decreased by JPY0.6 billion due to the termination of private
brands, but operating income increased by JPY0.8 billion, mainly due to an increase inincome from tenants.
In Fintech segment, revenue grew steadily by about 9% after taking into account the
impact of the liquidated accounts receivables,
but operating income declined by JPY1.3 billion after taking into account the impactof the liquidated accounts receivables, due to an increase in expenses caused bysome special factors.
The status of Retailing and Fintech segment is explained in each segment part fromthe next page.

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Retailing segment status.

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The following is a breakdown of changes in Retailing operating income.
Operating income increased by JPY800 million to JPY2 billion due to an increase in
fixed-term rental tenants income and a decrease in personnel expenses, despite anegative impact of JPY900 million in revenue due to the withdrawal of PB.

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This chart shows the factors that contributed to the increase in fixed-term rental
tenants revenues.
Since the non-operational floor space decreased and the average monthly rent
increased from the previous year, revenue from fixed-term rental tenants increasedby JPY900 million during the period under review.

13Specific underutilized parcels.
Due to steady progress in tenant leasing, the non-operational floor space in H1 was
8,700 tsubo, much lower than the 10,200 tsubo in the previous period. We plan toreduce the average floor space to 8,400 tsubo during the fiscal year ending March
2024.

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This is about the progress of stores that don’t sell.
The floor area composition of non-retail tenants increased 2% from the end of theprevious fiscal year, to 58%, indicating a shift in categories.
The Company is making steady progress toward its plan to increase the compositionof non-retail tenants to 70% in the fiscal year ending March 2026.
In addition, the unit rent per tsubo per month for fixed-term rental tenants is also
rising as planned.

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This is the number of customers entering the store.
109% of the previous year's total and 88% of the pre-COVID-19-year total.
With the expansion of non-retail tenants, the number of customers entering the store
will gradually recover compared to 19 years, and this year's forecast is 180 million,
92% of the pre-COVID-19-year level.

16This is the status of EC transaction volume.
With the further expansion of the hiring of professional talents and the strengtheningof efforts to increase the number of visitors, the volume of business handled has
increased for seven consecutive quarters and continues to grow.

17Based on the above, the outlook for the Retailing segment for H2 of the current fiscal
year is as shown.
Although income increased by JPY0.8 billion in H1, we expect to achieve the planned
JPY7 billion in H2 and beyond by further expanding revenue from tenants, as well as
reducing asset-related expenses such as facility costs and sales promotion expenses
for the period.

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Continuing on, here is the status of Fintech segment.

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Breakdown of operating income.
Revenue and expenses are divided into two categories: transaction transaction-linked
and non-transaction-linked.
In terms of revenues, growth in transaction volume contributed to a JPY2.6 billion
increase in merchant commissions, which are transaction-linked revenues. Nontransaction-linked revenue such as installment commissions increased by JPY4 billion,
for a total of JPY6.6 billion, but expenses increased by JPY7.9 billion, resulting in an
operating income of JPY23.5 billion, a decrease of JPY1.3 billion, excluding the impactof liquidated accounts receivables.
This was due to a one-time factor in merchant commissions and point expenses,
which caused revenues to exceed expenses.

I will provide more details on the following pages.

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First is the merchant commissions.
The commission rate for H1 was 1.21%, down 0.04% from the previous year, resulting ina negative impact of negative JPY0.5 billion in H1 compared to the previous year.
Of this, there was a 0.02% impact from a rate decrease for some large-lot merchants,
but this was not taken into account when the mid-term plan was formulated, so theimpact is expected to continue throughout the mid-term plan period.
Although the impact will be minor, it will continue to have an effect on the fee rate ofour strategy maximizing share of household finances.
The remaining 0.02% is due to a sharp recovery in travel & entertainment, which has alower commission rate, and an increase in prepaid charge usage. Prepaid charge usage
is expected to be unaffected in the future due to the revised point program.
*Prepaid charge use: recharging a prepaid card issued by another company using an
Epos card credit payment.

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Next, I would like to discuss the temporary spike in point costs.
In reaction to the refinement of the calculation method for reserves in H1 of theprevious fiscal year, expenses temporarily increased by JPY0.8 billion in H1 of thecurrent fiscal year.
This will only affect H1 of the fiscal year and will not affect H2 of the fiscal year andthereafter.
In addition, point expenses increased by JPY200 million in H1 of this fiscal year due toa significant increase in the use of prepaid cards charged for the purpose of earning
points.
As a response, a partial revision of the point program was implemented in September,and this impact will be eliminated from H2 onward.
Excluding these one-time factors, the growth of point costs has been at a constantlevel and controlled within the expected range.

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Finally, we discuss handling fees and labor costs.
In H1, the ratio of foreign currency commission payment to transaction volume
increased due to the impact of yen depreciation, resulting in a YoY difference of
JPY0.2 billion.
We expect this foreign exchange impact to continue in H2.
In the past, we have increased the number of employees by about 100 each fiscal
year through changes in Retailing business format and strategic personnel allocation,
but in H1 of this fiscal year, we increased the number of employees by an additional
80 as a prior investment in new business sales and other activities,
which had an impact of about JPY300 million compared to the previous year.
We expect that the impact of this change will run its course from H2 of the fiscal year
onward.

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Here is a summary of the temporary impacts I described.
Some of the effects of the sharp decline in merchant commissions will continue, butothers are temporary factors that will not continue in the current period and will notaffect the earnings structure in the medium term.
Excluding only the impact of these temporary factors*, the increase in profit for thisfiscal year is JPY2.9 billion, which is almost the same level as the increase of morethan JPY3 billion before the pandemic.
Therefore, there is no change in the basic profit structure of the Fintech's mediumterm plan, which is based on a trend of increasing profits as assumed in the plan.
*Out of the annual decline in profits of -¥2.6 billion, the impact of temporary factors(-¥2.0 billion), excluding the impact of some merchants (-¥0.6 billion), which is acontinuing factor.

24Based on the above, these are the factors that contributed to the increase or
decrease in Fintech's full-year earnings.
We have revised our forecast to JPY43 billion, JPY3 billion less than the original plan,taking into account a decrease in merchant fees, a special factor, and the impact of
an increase in point expenses.

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Next is the status of co-creative investments.

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In the fiscal year ending March 2024, we invested JPY100 million in startup companies
and JPY100 million in funds, for a total of JPY200 million.
This brings the cumulative investment amount from the fiscal year ended March 2017
to date to JPY27.2 billion.

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The main business contribution profit from co-creative investment is JPY1.2 billion.
Retailing sales amounted to JPY700 million, including tenant openings of co-creative
investees, and Fintech sales amounted to JPY500 million, including the use ofcollaboration cards.
We are targeting JPY5.5 billion for the fiscal year ending March 2026, the final year of
the medium-term plan.

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Next, we look at the balance sheet and capital allocation.

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This is the balance sheet.
Total assets increased to JPY1,021.7 billion, mainly due to a JPY32.5 billion increasein trade receivables from the end of March 2023.

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Capital
optimization

Share Buybacks --Human capital investment¥4.7 billion(+¥0.8billion)

This shows capital allocation.
Of the JPY14.5 billion in basic operating cash flow, JPY7 billion was allocated forinvestment in growth and JPY5.7 billion for dividends.
As for expense items, human capital investment, which is recognized as an investment
because it leads to future earnings, totaled JPY4.7 billion, an increase of JPY0.8
billion from the previous year and accounted for 26% of personnel expenses.

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Next is the full-year forecast.

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intech Transaction Card credit transaction

Segment profit forecasts.
The Retailing segment is expected to reach JPY7 billion as planned at the beginningof the year, and the Fintech segment is expected to reach JPY43 billion, a decreaseof JPY3 billion from the plan at the beginning of the year.
For all corporate expenses, the increase in human capital investment and otherfactors resulted in a decrease of JPY8 billion, down JPY500 million from the initialplanning.
The forecast of consolidated operating income has been revised downward to JPY42
billion, down JPY3.5 billion

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Although all three KPIs are expected to fall short of the initial plan, we will secure an
increase in sales and profit.

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As for dividends, since the revised forecast does not change the DOE level of around
8%, the dividend will remain unchanged at JPY101 per share, as originally planned.

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Finally, I would like to discuss the fiscal year ending March 2026, the final year of themedium-term management plan.
Due to the continuing impact of the decline in commission rates at some franchiseesin this fiscal year and the review of new businesses,
there will be a negative impact on operating income of approximately JPY3 billion to
the plan in the final year of the plan.
However, we will not revise the plan for the final year of the medium-term
management plan because we believe that we can fully achieve the plan by themeasures discussed in chapter two.
Therefore, we will not revise the plan for the final year of the medium-term
management plan.
That's all from me. Thank you.
*Forward-looking investments=New business + Co-Creative investments

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My name is Aoi.
I would like to explain our future direction and the outlook of our medium-term
management plan.

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This Q2 marks the halfway point of the current medium-term management plan.
Although H1 was difficult, we still have half of the year to go, and we are determined
to make up for it and achieve our initial plan.

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Therefore, we will revise some of our plans for the future and develop new growthstrategies ahead of schedule. The three points are as follows, one, review of personnel
planning and improvement of human productivity, two, cards supporting likes as a new
growth strategy, and three, review of new business and co-creation investments.

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The first is to review personnel planning and improve human productivity.

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Our per capita productivity has steadily increased by 1.5 times over the past 10 years
through our business structure shift from a Retailing-led to a Fintech-led businessstructure,
which we have been working on since the fiscal year ended March 31, 2015.

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On the other hand, per capita productivity of Fintech increased only slightly by afactor of 1.1, despite a fourfold expansion in transaction volume from JPY1.1 trillion to
JPY4.3 trillion over the same period.

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One of the reasons for the slow growth of Fintech's productivity was the reallocationof human resources due to the change in business structure.
Fintech's headcount was 1,300 as of April 2014, but over the next 10 years,
approximately 140 people were redeployed from Retailing each year, which is expected
to increase approximately 2.1 times to 2,700 by the fiscal year ending March 2024.
The reallocation of human resources has been done at a pace faster than the
expansion of Fintech's business, so to speak, in a pre-investment manner.

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However, with the completion of the Group's business restructuring in the previous
fiscal year, the redeployment of human resources will also be completed.
Accordingly, the Company intends to dramatically increase productivity by ensuringthat the human resources that have been deployed in a forward-looking manner
contribute to earnings.
Therefore, we will review the personnel plan. The medium-term plan initially assumed
an increase of about 100 employees each year after the fiscal year ending March 31,
2025, in line with the expansion of Fintech's business, but we have revised thisnumber to plus or minus zero.
This is expected to have a cost impact of approximately JPY1 billion in the final yearof the medium-term management plan.
In addition, by promoting operational efficiency through DX, we will increase
productivity per employee by 1.2 times to JPY36 million in the fiscal year ending
March 2026, and by 1.6 times to JPY47 million in the fiscal year ending March 2029.

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Next is cards tailored to each individual’s interests as a new growth strategy.

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Fintech's unique business model of no annual fee gold cards has been a growth engine
and has achieved high annual growth of 16% since 2007.
In addition to the gold card, a new card has emerged in recent years that could be asecond growth engine.

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That is the cards tailored to each individual’s interests

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The number of cardholders tailored to each individual’s interests as a percentage of
new members has been increasing every year and is expected to reach 40% in thefiscal year ending March 2024.

The LTV of cards tailored to each individual’s interests is as high as two to seventimes that of general cards, and depending on future strategies, could approach the
LTV of gold cards.

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Currently, 60 different types have been issued and their membership has reached780,000.
The number of members per project is 110,000 for the largest card and 600 for thesmallest.

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The number of such projects has expanded rapidly in recent years.
From 2015 to 2019, there were about two to four projects per year, but this number
began to increase in 2022, when print-on-demand was introduced.
16 projects last year and is expected to exceed 23 this year.
There are several reasons for the rapid increase in the number of projects.

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One of these is that the Group is involved in the development of not only Fintech, butalso Retailing and Co-Creative investments as a whole.
In fact, the number of Retailing projects is 26, in line with Fintech's 27. This is partly
because the animation business has been transferred to Retailing, but e-commerceand stores are also involved in the development.
Co-creative investments are also developing collaborative cards with investee
companies.
This ability to transcend business boundaries and engage in group-wide development
is one of our unique strengths.

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And second is employee motivation.
The motivation of our employees to apply their likes to their work, and the rewarding
feeling that the results lead to the likes of our customers, is the driving force behind
our development.

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And third, a corporate culture that encourages challenge.
In the past, the cost of printing cards was so high that it was necessary to issue morethan 5,000 cards per project in order to make it profitable. With the introduction of
print-on-demand, this limitation has been eliminated.
For employees, the reduced risk of failure has made it easier for them to makeproposals, and the number of challenges has increased.
Our next goal in human capital management is to create a corporate culture thattolerates failure and encourages challenge.
If, hypothetically, 5,000 employees could take on the challenge of developing one
piece per person, utilizing their likes, it would not be a dream to expand to 5,000
projects in the future.

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However, no matter how many projects we increase, if we cannot acquire members to
use these projects, they will be nothing more than a picture of the future.
In this regard, we have unique strengths and resources that our competitors cannot
imitateThat is the power to attract customers through in-store events and the power torecruit members through the customer service skills developed in Retailing.

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In synergy with the eventful store development, the percentage of cards supporting
likes in stores has risen to approximately 70% of the total number of cards accepted.
In addition, the event has also had a ripple effect of encouraging online membership inareas where there are no stores, as customers who attended the event have shared
their experiences on social networking sites.

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Second, we will expand usage by making the cards tailored to each individual’sinterests into main cards.
We have been encouraging customers who have made progress with their general cardto switch to the Gold Card in order to make it their main card.
However, many customers of the cards tailored to each individual's interests do notswitch to the Gold Card because they have a strong desire to use the card as theirmain card, resulting in the inconvenience of not being able to use the card as theirmain card because the limit is not raised.

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Therefore, we will change the operation of the card to allow customers to step up to
the limit that can be used as their main card without difficulty without having toswitch to the Gold Card in the future.

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We expect the effect of increased profits from cards tailored to each individual'sinterests to be between JPY2 billion and JPY3 billion in the final year of the mediumterm management plan.

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Next is a review of new business and co-creative investments.

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First, we have already reviewed our new business activities last year and have shifted
our business development policy from a 0-1 type of business development thatassumes that we are an entrepreneur to an intrapreneur type of businessdevelopment that makes the most of our strengths and resources.
As a result, the number of businesses was consolidated from 11 to 6, including theelimination or transfer of some businesses.
As a result of this review, the profit contribution from new businesses planned for the
final year of the medium-term management plan has been revised downward from
JPY2 billion to JPY1 billion.
The status of intrapreneurial business development will be explained at the IR Day.

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Next is co-creative investment.
We have been investing in pursuing the dual pursuit of profit contribution to our corebusiness and financial return through collaboration. These policies will remainunchanged. However, we will review its operation to improve its accuracy.
First, at the time of initial investment, we will place more emphasis on the possibilityof collaboration. In order to increase the results of the collaboration, it isadvantageous to invest in the early stages, but because of the high risk involved inthese stages, small investments are required.
On the other hand, at the stage when the collaboration has progressed, the corporate
value has increased, and the possibility of exit has increased, it is reasonable to makean additional investment that is increased from the initial amount in anticipation of afinancial return.
In the past, we have usually invested when the value of a company had increased to acertain degree. As a result, the amount of investment per case tended to be relatively
large, and as a result, the amount of subsequent impairment tended to grow as well.
From now on, the amount of investment in the initial stage for the purpose ofcollaboration will be limited to approximately JPY50 million, and additional investmentof JPY100 million or more will be changed to the operation when the possibility of exit61

as a result of collaboration has increased.
As a result of this review, the amount of investment from the current fiscal year to thefinal year of the mid-term plan is expected to be reduced from the originally planned
JPY12 billion to about JPY5 billion. Accordingly, the succession of impairment is
expected to decrease by about JPY1.5 billion.

The above will improve profits through the fiscal year ending March 2026 by JPY3
billion to JPY4 billion in operating income and approximately JPY1.5 billion in
extraordinary income/loss, which should be sufficient to achieve the goal for the final
year of the medium-term management plan.

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The forward-looking statements contained in this presentation are based on information available atthe 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 avariety of different factors. Please direct any inquiries to the IR Department (E-mail: marui-ir@0101.co.jp).

That is all.
Thank you

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Related business outlook.
In the H1, profits declined by JPY 300 million due to the impact of property
cancellations in the real estate business in the previous year,
From the second half of the year onwards, an increase of JPY 200 million in profit
is expected due to an increase in orders related to commercial facilities.

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Record High

Meanwhile, card credit transaction volume amounted to JPY 978.3 billion,
This was a 14% increase on the previous year and the highest quarterly figure everrecorded.
This was the ninth consecutive quarter of double-digit growth, partly due to therecovery from Covid-19.

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This is about cards tailored to each individual's interests.
The composition of cards tailored to each individual's interests, including content
cards, which is a focus area in the medium-term plan, has expanded to 43%.

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■The number of cardholders was also slightly higher than planned at 7.43 million.
The number of Platinum and Gold cardholders and cards tailored to eachindividual's interests, on which the company is focusing, has increased to 4.07
million and 55% of the total.

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（Including liquidated accounts receivable

Changes in the balance of installment and revolving payments.
With a steady increase in transactions, the balance of installment and revolving
payments also continues to grow (to a record high).
The proportion of instalment receivables to the balance of installment andrevolving payments stood at 28%,
The trend has been steady.

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Operating loans outstanding.
The balance of cash advance receivables bottomed out in the fiscal year ended March
31, 2022, and has been performing according to plan along with the recovery of
Covid-19.

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3000

2000
（

1000

）

0

Bad debts.
Although the balance of receivables at the end of the year increased significantly
along with the growth in transactions,
Bad debt write-offs have decreased since last year, with the bad debt ratio
remaining at the same level as the previous year at 0.84%

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