Based on our corporate philosophy of "Equate the development of our people withthe development of our company," we aim to enhance our corporate value bychanging the corporate culture and developing our people.

While shareholders and investors are increasingly interested in human capital, we
have not had an opportunity to explain it fully, so I’d like to share with you theoverview today.
Using the Iceberg Model, human capital is the “invisible capital” under the water
which is the source of the visible corporate value represented by financial
information.
Since I became President in 2005, we’ve been working to transform our corporate
culture for 17 years.
Transforming a corporate culture requires a long-term commitment, but throughour tenacious effort, now people say that MARUI GROUP is completely different
from the past.

Corporate culture is like an Operating System for management.
By upgrading our OS from the old one, we are shifting to new management thatbalances sustainability and well-being with profitability.

We are aiming to create a corporate culture to shift from forcing people torespecting their autonomy, from obligation to enjoyment, from top-downcommands to support, from core business and social contribution to contribution

to solving social issues through core business, from earnings performanceenhancement to value enhancement.

A variety of measures were taken simultaneously to change our corporate culture.
I will explain each of the measures 1 through 8.

First of all, we set our corporate philosophy shown on this slide.
“Equate the development of our people with the development of our company”.
This is the basis of our human capital management.

We had a thorough interaction with our people about our management philosophy.
In the dialogue, employees had deep level discussions on essential topics such as:“What are am I actually working for?”“What did I want to accomplish by joining MARUI?”I think those dialogues were the act of aligning the company’s purpose withindividual purpose.
The dialogue session continued for more than 10 years joined by almost allemployees.

After aligning the philosophy, people who were unable to share the common ideal
left resulting in a temporary rise in the turnover rate.
However, as we were able to enhance the circle of empathy for the philosophy,

the turnover rate is now at a low level, around 3%.
For the new employees, we share our corporate philosophy before they join us
through programs such as internships. That resulted in an improvement inturnover rate for new employees up to ３years from 20% to 11%, which is one-thirdof the nation’s average of about 30%.
This is how we built the foundation for the company and the individual relationshipwhere we mutually select each other.

In addition, “A culture of interaction" has been fostered through these activities.
In the past, one-way communication was the norm, so it was a challenge tounderstand what interaction was, but through trial and error, we learned how toengage in interaction.
And we created rules for " interaction ".
All of them are obvious, but (1) " Begin with safe space declaration" is similar to
Google's psychological safety, and they are similar to David Bohm's theory ofinteraction.
Thanks to this, the habit of interaction is now firmly established, and meetings arealways conducted with interaction.

Next, we worked to reduce overtime as part of our work style reforms.
As a result of initiatives, per capita overtime was reduced from 11 hours permonth in the fiscal year ended March 2008 to about 4 hours in the fiscal year

ended March 2022.
The purpose of this initiative is not only to create a comfortable workplace but
also to transform our perspective on work - what is important for the future is tocreate "value" and not to work long hours.

In embracing diversity, we addressed three types of diversity: "gender," "agegroups," and "individuals" .

I’d like to explain "gender" diversity.
From the Fiscal year ended March 2014, we started a project to promotewomen’s empowerment.

By setting our own KPIs, Women’s Empowerment Indexes, 8 years later, in the
Fiscal year ended March 2022,100% of male employees had taken child care leave
for ４ consecutive years, and the percentage of female employees pursuing upperlevel positions, which had been an issue, had also improved to 64%.
From the fiscal year March, 2022, we have set a new goal for male employees totake paternity leave, and have begun addressing the gender roles between men
and women, which is the cornerstone of gender equality.
In recognition of these efforts, we have been selected as a "NADESHIKO
BRAND" for five consecutive years.

Next is the culture of voluntary participation.
What triggered this idea was the Medium-Term Management Visionary Committee
when I became president.

As you can see, all the participants were men in dark suits.
Some of them were sleeping.
After thinking about how to revitalize such meetings, I arrived at the " voluntary
participation " method.
We decided to ask people to volunteer if they want to participate in such meetings,and invited only them.

And here is the current situation.
The participation of women as well as men, young as well as experienced, hascreated a lively atmosphere and improved the meeting to a different degree

The Medium-Term Management Visionary Committee is held once a month, 12times a year.
Nearly 1,000 people raise their hands each time, and about 300 who have passed

the paper screening participate in the conference.
To date, we did 78 meetings and 25,000 people attended.

We started to adopt this raise hand system for other programs such as projects,
going to external business schools, future leader development programs, and newbusinesses.

In addition, promotion exams and transfers are also conducted on a voluntary
participation.
In the fiscal year ended March 2022, the percentage of employees who voluntarilyparticipated reached 82%.

Next is our unique "Personnel Transfers Within Group to Different Job
Categories".
In addition to Retailing and FinTech, MARUI GROUP has a variety of otherbusinesses, like IT, logistics, and housing.
Based on employees’ wishes, we’re offering " Personnel Transfers Within Groupto Different Job Categories " across our group.
In the fiscal year ended March 2022, a cumulative total of 77% of employees weretransferred to jobs different from their original ones.
86% of the employees experienced growth after their transfer.
We aim to promote the growth of employees and to form a team consisting ofindividuals with diverse experience, thereby enhancing our ability to respond tochange and become a company capable of creating innovation.

To support these initiatives, we revised our personnel evaluation system.
It is appraisal based on both Performance and Value .
By doing both performance evaluations and 360-degree evaluations fromsupervisors, colleagues, and subordinates about values, we aim to realize ourphilosophy of “personal growth”.

The last is “well-being”.
We’ve been working on well-being since 2016, aiming to create a vibrantorganization where each employee is able to work with a sense of fulfillment andvitality.
Led by Ms. Kojima, our industrial physician, and Chief Wellbeing Officer, we have
implemented a resilience program for executives, as well as projects lead byemployees.
Project members were selected from applicants five times as many as themembers, who are passionately leading their workplace.
In recognition of these efforts, the company has been selected as a "Health &Productivity Management Organization" for five consecutive years.

This is the future Direction.
We have transformed ourselves from a Retailing-driven, labor-intensive businessto a FinTech-driven business.

Going forward, we will evolve into knowledge-creation business through businessmodel integrating Retailing, FinTech, and Forward-Looking Investments, and byinvesting in intangible assets.

What we need for further evolution is to bridge the gap between current humanresources and the people we want for the future.
Until now, we were seeking people who can efficiently carry out the given tasks.

In the future, we want people who are production creativity new businesses.

A key phrase for the human resource we want is “Digital Business Creation
Personnel”.
A person capable of producing new business by utilizing the power of digital.

This capability requires “like” as a starting point, with a combination ofhypothetical thinking, target-oriented, and digital.

In order to develop such talents, we will further provide growth opportunities suchas new businesses, co-creation teams, and CMA, our next-generation
management development program.

Through CMA, we plan to train about 200 next-generation candidates by fiscal
year ending March, 2027.

In addition, we’ll also strengthen our digital training.
In collaboration with Life is Tech!, our co-creative investee, we conducted digitaltraining for directors last December.

This fiscal year, we’ll first conduct training for new employees, followed byexisting employees.
Furthermore, we’ll hold an in-house event called "App Koshien" in December tocompete for the best results from the training and to discover digital talent.

In April, we established a joint venture company, “Muture” with Goodpatch, aleading UX design company.
This joint venture will serve as a window for recruiting digital and UX experts.

We’ll also enhance UX expertise through secondment.

Next is governance.
In order to align management strategy and human resource strategy, the HumanResource Strategy Committee was newly established in April as an advisory bodyto the Board of Directors.
The committee will be chaired by CHRO Mr. Ishii, and outside director Ms. Okajima
will serve as a member of the committee.
The committee will propose HR strategies to the Board of Directors incooperation with the Strategy Committee.

(In addition to general shareholders’ meetings held in accordance with the Companies Act)

In addition, the Company resolved to grant shares to its employees at the June
2022 General Meeting of Shareholders.
We have been offering performance-linked stock compensation for directors andmanagers in the past, We will now grant shares to general employees as well.
We will take our stakeholder management one step further by having ouremployees become shareholders.
A total of approximately 700,000 shares will be granted in February 2023, with 150
shares per employee (more than the number of shares per unit).
Based on this, we will consider holding a general meeting of shareholders for
employees, in addition to the annual general shareholders’ meetings under theCompanies Act.

Next is about investment.
During the previous medium-term management plan, we invested about 11 billion
yen in "human resources" and "R&D" combined.

The total investment for the fiscal year ended March, 2022 was 4.2 billion yen.
However, some of the investments that were categorized as R&D included things
related to human capital.

We have therefore decided to redefine human capital investment by extracting
human capital-related expenses.
Previously, we recorded only the education and training expenses under humancapital investments, which was about 1 billion yen for the fiscal year ended March,2022.
We now add personnel costs for employees involved in new businesses andseconded staff, half of the co-creation team’s cost, which was previously
included in R&D.
The amount is about 2.2 billion yen.
We’ll also add costs for the first year of employees who have changed their job
category and the investment in a new business incubation company.
These are about 4.5 billion yen.
The total amount is 7.7 billion yen.

Under the new medium-term management plan, human capital investment basedon the new standards will expand to 12 billion yen in the fiscal year ending March,
2026.

Accordingly, the investment as a percentage share of personnel expenses will risefrom 22% to 35 %.
Through this expansion of human capital investment, which contributes to future
earnings, we aim to sustainably increase corporate value.

We first discuss the concept of what to return.
We believe that human capital investment will create new businesses and newservices unique to our company that will raise corporate value in the long term

through the creation of an organizational climate conducive to innovation.
Since the start of the aggregation of human capital investment, we have creatednew businesses and services unique to our company, including the anime businessand the changeable shopping payment installment.
The revenues and marginal profits generated from these businesses and services
are considered return, and the two models are used to calculate the efficiency ofinvested capital.

This is the first of the models.
We compare the effectiveness of the amortization of human capital investments
to the income invested from new businesses and services on a per year basis.

Amortization of human capital investment is estimated assuming an amortization
period of 10 years.
Estimates show that in the third year, to for the fiscal year ended March 31, 2019,revenues would have exceeded costs for the first time, indicating that the returnon investment is effective.
In the fiscal year ending March 31, 2026, the final year of the current MediumTerm Management plan, revenues are expected to be five times higher than costs.

••The second model is the IRR-based return concept.
If the investment period is considered to be the five-year period of the entire
Medium-Term Management plan, and the investment payback period is defined as

the period through the fiscal year ending March 31, 2026, the final year of thecurrent Medium-Term Management plan, IRR is expected to be 11.7%, exceeding
capital costs, if revenues from new businesses and new services continue asplanned.
That is our approach to the evaluation of human capital investment.
By continuing to verify the results based on these evaluation methods, we willfurther promote human capital investment that leads to increased corporate value.

That’s all from me.

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 ).