MARUI GROUP’s Governance Focused on Six Stakeholder Groups
Customers

In June 2021, MARUI GROUP took its first step in practicing governance with a focus onits six stakeholder groups in the truest sense by assembling a new team for the Board of
Directors. At this time, Reiko Kojima, company physician and well-being expert, wasappointed as an internal director. The team also includes two new external directors—

Business
partners

Investors

Yasunori Nakagami, representative director and CEO of Misaki Capital Inc., and a representative for shareholders, and Peter David Pedersen, representative director of Next

Stakeholder
Value

Leaders’ Initiative for Sustainability and a sustainability expert. This move marked thestart of a new approach toward governance with involvement from stakeholders.
This approach was adopted based on MARUI GROUP’s definition of corporate value
as being produced by creating harmony between the interests and happiness of all of its

Communities
and Society

Employees

stakeholders and growing the intersection of these interests and happiness. The positions and views of stakeholders vary, and their areas of focus and interests can thus bein opposition. By embracing this conflict, we believe that we can reach solutions of a

Future generations

level of viability that could not be achieved with only members from within the Company.
We are confident that this approach will allow us to realize our desired impact.

Members of the New Board of Directors Including Stakeholders
Hiroshi Aoi

Chairman of the Board

Etsuko Okajima

President and Representative Director,
Representative Executive Officer, CEO
Chairman of Management Committee and Compliance Promotion
Board, Member of Nominating and Compensation Committee,
Sustainability Committee, Strategy Committee, and Human Resource
Strategy Committee
Reason for appointment: Hiroshi Aoi has properly overseen the Board of Directors as thechairman and duly performed his supervisory functions with regard to important management
decision-making and operational execution as the president and representative director of
the Company since 2005. He has ample business experience and knowledge as a corporate
manager and has overseen the overall operation of the Group and performed his duties properly
as the Group representative executive officer. Based on the above reasons, the Company
believes that he can fully perform his functions for facilitating the medium- to long-term
improvement of the corporate value of the Company.

Yasunori Nakagami

External DirectorRepresentative Director and CEO, Misaki Capital Inc.
External Director, Chairman of Strategy Committee,
Member of Nominating and Compensation Committee
Reason for appointment: Yasunori Nakagami has accumulated a wealth of experience atmanagement consulting firms and investment management companies through which hehas amassed exceptional insight regarding corporate management that emphasizes capital
markets. The Company thus judged that he would be able to contribute to the supervision of
overall management from an independent and objective standpoint as an external director.

Hirotsugu Kato
Director, Managing Executive Officer, and CFO
Chairman of ESG Committee and Insider Trading Prevention Committee,
Member of Management Committee, Sustainability Committee, Strategy
Committee, Compliance Promotion Board, Public Relations IR
Committee, and Internal Control Committee
Reason for appointment: Hirotsugu Kato has overseen finance, investment research, sustainability, and ESG divisions and performed his duties properly as a managing executive officer of
the Company since 2016. Based on the above reasons, the Company believes that he can fully
perform his functions for facilitating the medium- to long-term improvement of the corporate
value of the Company.

External Director

President & CEO, ProNova Inc.
External Director, Member of Nominating and Compensation Committee,
Strategy Committee, and Human Resource Strategy Committee
Reason for appointment: Etsuko Okajima has experience and extensive knowledge related
to corporate management, human resource development, and start-up companies. She has
performed her duties as an external director of the Company properly by voicing questions andopinions from an objective, independent position. The Company believes that she can continue
to contribute to the reinforcement of the supervisory function for the management of theCompany.

Peter David Pedersen

External DirectorRepresentative Director, Next Leaders’ Initiative for Sustainability
Professor, Shizenkan University
External Director, Chairman of Sustainability Committee
Reason for appointment: Peter David Pedersen has accumulated a wealth of experience atenvironmental and CSR consulting firms through which he has amassed exceptional insight
regarding global-level sustainability management. The Company thus judged that he would be
able to contribute to the supervision of overall management from an independent and objective
standpoint as an external director.

Reiko KojimaDirector, Senior Executive Officer, and CWO (Chief Well-being Officer)
General Manager, Wellbeing Promotion Department
Company Physician
Member of Management Committee and Sustainability Committee
Reason for appointment: Reiko Kojima has robust experience as a general physician, a Doctorof Medicine, and a company physician and has performed her supervisory functions properlywith regard to important management decision-making and operational execution as a directorof the Company since 2021. She has performed her duties appropriately by promoting
well-being management aimed at ensuring greater happiness for people, organizations, andsociety as chief well-being officer (CWO) and a senior executive officer of the Company. Basedon the above reasons, the Company believes that she can fully perform her functions forfacilitating the medium- to long-term improvement of the corporate value of the Company.

Major Agenda Items Discussed at Meetings of the New Board of Directors (April–November 2023)• Appointment of new executive officers• Partial revision of articles of incorporation• Change to development system for lifestyle app• Distribution of MARUI GROUP stock to employees• Allocation of Co-Creation Management Academy
participants• Status of investment projects and holding ofunlisted securities• Status of cross-shareholdings and future measures• Performance and revision of women’s empowerment indexes• Sustainability Committee progress report•E valuation of Board of Directors’ effectiveness andimprovement measures•O utlook and future measures for Fintech segment

79

MARUI GROUP’s Governance Focused on Six Stakeholder Groups

Corporate Governance System

Introduction of “Exercise of Corporate Philosophy” into Articles of Incorporation

The Board of Directors and the Company’s various committees engage in discussions that are not bound by previous conventions insearch of the strategies, organizational structures, and human resources that will be necessary for achieving MARUI GROUP’s three
impact goals. The Sustainability Committee has been chaired by Peter David Pedersen since November 2021. Also at this time, theStrategy Committee, which is chaired by Yasunori Nakagami, was established with the goal of examining medium- to long-term businessstrategies while directly incorporating the perspectives of shareholders and other investors. The Strategy Committee invites external
experts to take part in discussions as appropriate based on the given subject matter in order to delve deeper into business strategies
from a variety of perspectives. In addition, the Human Resource Strategy Committee was established in April 2022 to develop humanresource strategies that are linked to Groupwide management strategies. Coordination is pursued between the Strategy Committee andthe Human Resource Strategy Committee in order to accelerate governance with a focus on our six stakeholder groups and to facilitate
the generation of MARUI GROUP’s desired impact.
Ordinary General Meeting of Shareholders
Appoint / Dismiss

Advisory
Committees

Audit & Supervisory Board
Nominating and Compensation Committee
Sustainability Committee
Strategy Committee
Human Resource Strategy Committee

Select /Discharge

Appoint / Dismiss

Audit

Board of Directors

President
ReportReport / Advise
Report / Advise

ReportInstruct

Report / Advise
Report / Advise

Management Committee

Compliance Promotion Board
ReportInstructPublic Relations IR Committee, Internal Control Committee, ESG Committee, Information Security
Committee, Safety Control Committee, Insider Trading Prevention Committee

Human Resource Strategy Committee

Strategy Committee

Chairman

Tomoo Ishii, Senior Managing Executive Officer and CHRO*

ChairmanYasunori Nakagami, External Director

Members

Three internal/external directors/executive officers

Members

Four internal/external directors/executive officers

Purpose

PurposeEstablished in April 2022 to develop human resource strategies thatare linked to Groupwide management strategies and thereby
contribute to ongoing improvements in corporate value

Roles• Provision of advice regarding required human resources andhuman resource portfolio• Advisory of recruitment and development plans and humanresource systems

Established in November 2021 to discuss and examine strategies
from the perspective of shareholders and other investors in order toformulate strategies for developing businesses with future potential,
including those with high barriers to participation, and thereby
facilitate management emphasizing stakeholders

Coordination

Once every two months, in principle

Role• Provision of advice regarding medium- to long-term strategies

Meeting
frequency

Once every two months, in principle* CHRO (Chief Human Resources Officer)

Advisors
Masakazu Masujima
Partner, Mori Hamada & Matsumoto

Fintech Specialist

Engineering, Department of Technology Management for Innovation,

AI Specialist

Kyoko Ozawa
Member of Sustainability Committee

The University of Tokyo

University student

Masayoshi Suzuki

Sota Watanabe

Executive Vice President, BORDERLESS JAPAN CORPORATION

Social Specialist

Member of Sustainability Committee
Yoshiki Ishikawa
Doctor of Medicine; Preventative Medicine Researcher;
Representative Director, Well-being for Planet Earth Foundation

Committee Membershipwww.0101maruigroup.co.jp/pdf/
committee_members_en.pdf

80

Tomohiro Miyasaka
Venture Capitalist

Yutaka Matsuo
Head of Dept./Professor, Research into Artifacts, Center for

Newly Established Article 2. Exercise of
Corporate Philosophy
Through the exercise of its corporate philosophy of “continue evolving to better aid our customers” and “equate thedevelopment of our people with the development of ourcompany,” MARUI GROUP strives to fulfill its mission ofcontributing to the creation of an inclusive society thatoffers happiness to all.
By merging finance and retailing, the Company aspires toprovide economic enrichment as well as emotional enrichment in the form of happiness and to create a society inwhich everyone is able to obtain this happiness.
However, this important mission cannot be carried out by
the Company alone. Accordingly, an approach toward fulfilling this mission has been adopted entailing co-creation withcustomers, investors, communities and society, business
partners, and future generations.
By engaging in such co-creation management with stakeholders, MARUI GROUP works to create harmony between
the interests and happiness of all of its stakeholders while
generating earnings and contributing to the resolution ofsocial issues through its business.

Transcript of Board of Directors’ Discussion on the Revision of the Articles of Incorporation

Committee Structures and Purpose

Meeting
frequency

In 2023, MARUI GROUP declared its intent to evolve into a company that contributes to the resolution of social issues in order toachieve earnings growth while producing its desired impact. To
clearly present our unshakable vision and underscore the fact that
all of our business activities are based on our corporate philosophy, we revised our articles of incorporation to include the new
article of “Exercise of Corporate Philosophy.” The genesis of
discussions regarding this revision can be traced back to input
from the Sustainability Committee to the Board of Directors,
suggesting that such a revision could be examined as a way toillustrate MARUI GROUP’s stance and that it was necessary tosend a clear message regarding how the Company will produce
its desired impact going forward.
Following the revision, investors have voiced their support forthe move, with some saying that they agreed with the idea tointroduce a new article about a company’s corporate philosophy,
despite the fact that they were opposed to incorporating theUnited Nations Sustainable Development Goals (SDGs) into the
purpose section of the articles of incorporation due to the risk ofsuch goals impeding actual business decisions. Other comments
included expressions of praise for the concise move of introducing only this one new article and the proactive stance it represented as well as for the firm commitment to the corporate
philosophy that this new inclusion indicated.

VentureInvestment
Specialist
Sustainability
Specialist
PublicCEO, STAKE TECHNOLOGIES PTE. LTD.

Blockchain

Director, Japan Blockchain Association

Specialist

Well-being
Specialist

MARUI GROUP Corporate Governance Guidelineswww.0101maruigroup.co.jp/pdf/
cgg_20230509_en.pdf

Corporate Governance Reportwww.0101maruigroup.co.jp/pdf/
cgr_en.pdf

The following is an abridged transcript of a discussion by the Board of
Directors regarding the revision of the articles of incorporation that took
place across two meetings held in April and May 2023.
Okajima: Articles of incorporation are kind of like the “constitution” of acompany. Lately, we have been seeing a lot of change, and therefore I
thought that the purpose section would be getting more and more
ambiguous. The approach of putting the corporate philosophy before that
section will make things much easier to understand.
Nakagami: Companies use economic forces to address social issues. I
have said this in the past, but the approaches used for this purpose need
to be both serious and unique. Other companies seem to be trying to
make clear statements of what they see as serious social issues. This is
why I think it would be a good idea for the articles of incorporation to
include statements about the issues MARUI GROUP sees as serious andthe unique methods through which it is approaching these issues.
Okajima: It might be prudent to offer a few more details on the conceptsof happiness and inclusivity that MARUI GROUP advocates. Too muchdetail, however, will limit the scope of these concepts, which might beproblematic for a constitution. At the same time, if the concepts are too
abstract, it will be unclear exactly what MARUI GROUP is about.
Aoi: In the new article, we explain our corporate philosophy by looking at,in this order, our mission, the purpose of our business; our approach
toward co-creation, how we fulfill this purpose and the unique method
through which we will tackle issues; and our goal of creating harmony
between the interests and happiness of stakeholders, the result of thisapproach. The issues we see as serious are those that we can get to theheart of by proposing alternative forms of consumption and new lifestyles through our retailing and fintech businesses. Happiness andArticles of Incorporation
www.0101maruigroup.co.jp/en/ir/pdf/articles/articles_en.pdf

inclusivity are keywords for this endeavor. The concept of inclusivity
indirectly refers to our belief that individual happiness cannot be achieved
if we do not make everyone happy.
Nakagami: How to accommodate everyone is a key issue for MARUIGROUP. It therefore might be smart to express how retailing and financeare its tools for addressing this issue. Just saying that you will address
this issue through your business is too vague.
Pedersen: This revision to the articles of incorporation is an incredibly
meaningful way of indicating MARUI GROUP’s stance, not just for external stakeholders but also for internal stakeholders like employees.
Including the words “retailing” and “finance” will no doubt resonate with
employees.
Aoi: I think you are right. Our approach of merging retailing and finance issomething that is unique to MARUI GROUP, and we should definitely putthat into words. Let’s make that change.

Discussion at Board of Directors’ meeting

IMPACT BOOK 2023
www.0101maruigroup.co.jp/en/ir/pdf/impactbook/2023/impactbook_all.pdf

81Our Flow Experiences

MARUI GROUP’s Governance Focused on Six Stakeholder Groups

The following messages were written prior to October 2023.
All costumes and items pictured are the personal belongings of the individual in question.

Target of PBR of 5 Times
Although MARUI GROUP has declared its intent to evolve into a
company that contributes to the resolution of social issues, theCompany is committed to avoiding negative impacts to its growthand capital efficiency because of its priority to generating its
desired impact. Our goal is to achieve earnings growth while
producing the impact we desire. We aim to increase profit margins and corporate value by continuously developing businesses
oriented toward the resolution of social issues and by allowing
employees to exercise their creativity through the expansion ofhuman capital investments. Both of these approaches involve
investments in intangible assets that do not appear on the balance sheet and thus present the potential for high capitalefficiency.
MARUI GROUP has set the target of a price-to-book ratio (PBR)
of 5 times, which should be achievable by realizing return on
equity (ROE) of 25% and a price earnings ratio (PER) of 20 times.
We are actively discussing the appropriate approach for pursuingthis lofty goal.

Transcript of Strategy Committee’s Discussion on the Target of PBR of 5 Times
The following is an abridged transcript of a discussion by the Strategy
Committee regarding the target of a PBR of 5 times that took place inDecember 2022.
Nakagami: There is likely a strong correlation between a company’s ratio
of intangible assets and its PBR. MARUI GROUP produces ROE of around
8% with a PER of 20 times, which should make for a PBR of about 1.8
times. Meanwhile, intellectual creation companies tend to have PBRs ofaround 5 times. PBR is arrived at by multiplying ROE by PER, and ROE
comprises net profit margin (NPM), asset turnover, and leverage. PER,
meanwhile, is thought to represent the amount of anticipation toward acompany’s growth. The basic logic behind the indicator is that a company
with low risk and the ability to grow should have a higher PER. Growth, intheory, should be represented by the dividend growth rate, while risk canbe measured as the cost of capital. If you want to achieve a PBR of
5 times, you will need a PER of 25 times and ROE of 20%.* As MARUIGROUP’s business is not dependent on its balance sheet, there is room topush up the leverage ratio a bit. This could lead to a significant increase in
asset turnover.
Aoi: Our transition from labor-intensive retailing operations to a capitalintensive fintech business resulted in an increase in operating income per
employee. By transforming MARUI GROUP into an intellectual creationcompany, we look to raise operating income per employee even further.
This should drive growth in both ROE and return on invested capital. In
the past, we have been successful in boosting ROE by raising leverage.
Meanwhile, total assets have been on the rise, leading to flat growth inasset turnover.
Nakagami: It is important to think about the type of frameworks thatwill contribute to high levels of ROE. It might not be necessary to raiseleverage too much, but there is a need for significant increases in NPM
and asset turnover. When it comes to PER, the denominator in theequation is cost of capital minus dividend growth rate. A capital-intensive
business will generally entail higher risks, but an intellectual creationcompany might be able to limit this increase. As we think about the targetof a PBR of 5 times, we should remain cognizant of the basic mechanism
through which this will be achieved, ROE multiplied by PER.

Aoi: We need to assess the situation based on uncertain future performance figures as well as on the actual situation related to our people,
workstyles, and business. I want to make sure that we take this approach.
Nakagami: As for the framework for raising ROE from 8% to 20%, a good
example might be leverage of 3.5 times, NPM of 20%, and asset turnoverof 0.3 times, which would make for ROE of 21%. Getting a PER of 25
times could be accomplished by increasing the dividend growth rate by 1
percentage point, to 5%, while keeping cost of capital at 9%. There might
be a need to verify the figure of 5% for the dividend growth rate.
Nevertheless, I think that a PER in the 20s is well within the range ofpossibilities for a steadily growing company.
Aoi: PER tends to be influenced by industry averages and standards set
by analysts. This is why it is important for companies to present themarket with explanations of the logic behind their estimates. The fact thatthings which count as traditional business models are becoming less andless common is true of any business or market. This is why we need tomake proposals prefaced on this fact.

President and Representative Director, Representative Executive Officer, CEO
President and Representative Director, okos Co., Ltd.
Director, D2C & Co. Inc.
Director, Muture Corporation
Management Committee (Chairman)
Compliance Promotion Board (Chairman)

I have always loved to tackle new challenges, even when I was a kid, and I have tried alot over the years. Right now, I am hooked on singing. I have even gone as far as to hirea professional coach, who is helping me practice an opera aria. Opera is a deep andcomplicated art, and this makes it all the more engaging. I don’t just love the artistic
element of it; I also love its unexpected physical benefits, like how you train your muscles to make your entire body an instrument. The fun of opera is how you are able totake on the role of the protagonist to experience a different personality and world. I canforget myself and lose all track of time as I really get into the flow. At the moment, I
mainly find myself singing the songs of princes and artists, but I hope to try out thesong of some Svengali or Machiavellian elder in the future.

E __Etsuko Okajima

External Director
President & CEO, ProNova Inc.

I am totally into the boy band BE:FIRST. I have gone beyond being a fan of a particularartist or group to become a fan of the BMSG production company itself. I get to experience a true state of flow for nearly five hours at a BMSG event. I also love auditionshows and watch pretty much every audition show out of Japan or Korea. BE:FIRST
was assembled through an audition show called THE FIRST, and I have watched all 20
episodes of the show over five times or so. My day job is to identify and develop
management candidates and future leaders, and the methods I use to recognize thatkind of potential are pretty much the same as those used in audition shows. I can really
understand the questions and feedback voiced by SKY-HI, the organizer of many ofthese shows. In fact, I even went as far as to tell him that I say the same things. When I
get to see the high-potential individuals I have discovered undergo a major transformation, I get to experience flow. I love seeking out such diamonds in the rough and watching them learn to shine.

* Later discussion led to the decision to target a PER of 20 times and ROE of 25%.

Operating income per
employee (salary)
Dividend
Intellectual
creation
RetailWeighted
averagecost of capitalWhiteboard used by External Director Nakagami and others at the meeting

Lively Debates at Directors’ Retreat
MARUI GROUP has been arranging annual retreats attended by all internal and external directors
since 2022. These retreats are opportunities for in-depth discussion on medium- to long-term
strategies and on the messages to be communicated at financial results briefings and MARUI IR
DAY events. Moving discussions to a location with a different atmosphere allows attendees to get
down to the issues that cannot be addressed in regular discussions, which can sometimes result in
lively debates and the sharing of frank opinions. The second such retreat, which was held in April
2023, saw the directors sharing their hopes for the future in which MARUI GROUP is producing its
desired impact, which included External Director Pedersen singing a song he had written to express
his thoughts about the future and sustainability.

82

H __Hiroshi Aoi

Y __Yasunori Nakagami

External Director
Strategy Committee (Chairman)
Representative Director and CEO, Misaki Capital Inc.

Attendees at second directors’ retreat

I get into a flow from the thrill of surfing, a hobby I love despite not being particularly
good at it. Whether under the scorching summer sun or in the blistering cold of winter, I
am always happy to head to the beach. This is all because I am addicted to the feelingof riding the waves. For a city dweller, the beach itself is an exciting break from everyday routine, and the experience of riding the waves at the beach is a special one that
can’t be found anywhere else. Knowing that I can later escape my everyday life to havethis experience is what allows me to keep focused on my work in the city. I love surfing,
though I do need to get a little better!
83

Our Flow Experiences

p __Peter David Pedersen

External Director
Sustainability Committee (Chairman)
Professor, Graduate School of Leadership and Innovation, Shizenkan University
Representative Director, Next Leaders’ Initiative for Sustainability

H __Hitoshi Kawai

I experience flow when I am so absorbed in my work or hobbies that I forget myself
completely and just keep moving forward. At work, for example, the stories I want toshare at a lecture or seminar will just come pouring out, without me having to put any
particular effort into it. It is not as if I am really thinking about what to say; the words I
need just come out by themselves. I also experience this type of flow state when I am
painting, my style being a clumsy take on watercolor painting that resembles oil painting. When I get into this state, I lose track of time and the painting just ends up getting
done, without me worrying about the shapes or colors or even about the quality of thepainting. There is probably no one correct answer about what produces this state.
However, I think the basic conditions for this state lie in loving a particular activity andhaving a certain degree of skill in it. Of course, there is some overlap between flow andthe Ikigai model that has become known around the world. Also, if you are looking toexperience flow in business or at work, you will also need to respond to social needs
and have a way to make money.

Audit & Supervisory Board Member (Full time)

I have loved to run ever since I was a kid, and I’ve been going on runs once or twice aweek since I graduated from university. Not only does working up a sweat leave me
feeling refreshed, I also come up with a lot of good ideas while running. Furthermore,when I am trying to meet a strict time goal, I am able to focus and lose track of myself.
It’s at times like these that I am able to come up with the type of ideas that I couldn’t
find elsewhere, and when I get into the flow and just keep running, it is refreshing for
my mind. However, those ideas start to fade as soon as I stop running, and I sometimes find myself feeling anxious trying to remember what I was thinking about.
This is when I turn to my tradition of a post-run glass of tomato juice, which leaves
me refreshed and looking forward to my next run and new idea.

H __Hirotsugu Kato

Director, Managing Executive Officer, and CFO
In charge of IR, Finance, Sustainability, and ESG Promotion
President and Representative Director, D2C & Co. Inc.
Director, MARUI CO., LTD.
Director, tsumiki Co., Ltd.
Director, okos Co., Ltd.
ESG Committee and Insider Trading Prevention Committee (Chairman)

My latest obsession is saunas. I used to have almost no experience with saunas. A
couple of years ago, however, I started going out to meals with young entrepreneurs,
and I remember feeling left out by not being able to get in on the conversation when it
came to saunas. It was at this time that I learned of a new sauna near my house. I
finally got up the courage to go around the end of last year. Experiencing a sauna is acycle of feeling hot, feeling cold, and feeling drained. You have nothing to do but thinkduring this process, and I was surprised to learn just how sharp my focus became at
the sauna. This intense focus is probably what you would call a flow experience. I
suspect that one of these days this focus will lead me to an idea that will shock theworld; at least I hope it will.

R __Reiko Kojima

Director, Senior Executive Officer, and CWO (Chief Well-being Officer)
General Manager, Wellbeing Promotion Department
Company Physician

Between my three years at high school and my six years at medical school, I have been
in a choir for nine years. My high school had a storied history of winning nationwide
choral contests, and I remember the extensive training we would do in the morning,
after lunch, in the evening, and on retreats. The experience of getting lost in song withthe other members, the nervousness felt on the day of competitions, and the time
rejoicing or lamenting the results and expressing our appreciation to one another are
all precious memories. I became the head of the choir at medical school. In this role,
I would find myself discussing our greater goals with members, getting help fromformer members and teachers, and arranging massive concerts. The process oforganizing support teams to help members who could not yet read music and talking
with members to help keep them motivated is what made me so committed to ensuring that everyone feels energized in what they do. This commitment stays with meeven in my work today. I still sometimes meet with my old choir friends to sing. The
time we spend lost in our melodies is truly a happy time.
84

H __Hajime Sasaki

Audit & Supervisory Board Member (Full time)

I made my surfing debut two years ago, when I was 57. I am still a beginner, but I havepracticed a ton and am now able to stay on the board. It was the feeling of gliding
across a good wave that got me hooked. It is kind of difficult to put into words, but
I keep at it because I love that special feeling when you are soaring on a wave. The
challenge of surfing comes from how the waves and wind are different every time andhow the conditions are always changing. More than using your muscles, you need theability to adapt flexibly. It didn’t take me long to learn that; if you can’t adapt, you won’t
be able to control your board. We could even say the same of the current operating
environment.

Y __Yoko Suzuki

External Audit & Supervisory Board Member
Partner, Suzuki Sogo Law Office

It was not long after I became a lawyer that I went with my husband to see a production of THE LION KING by Shiki Theatre Company, and now watching musicals is ahobby we both share. The musical I have gotten the most into is MAMMA MIA!, a storyof love, friendship, and the bond between a mother and daughter set to the songs of
ABBA. I have been going to see this musical in theaters for two decades now. When I
first saw it, I shared the perspective of the daughter. After my own daughter was born,
I was able to laugh and cry to the musical from the perspective of a mother. From thediverse lives shown by the youths in a chorus line to the proud and distinctive catsliving in the street and the strong yet kind princesses illuminating the stage, I become
enthralled by the magic of the songs and dances of musicals. They truly energize andempower me and make me want to start something new.
85

Our Flow Experiences

Y __Yoshinori Saito

External Audit & Supervisory Board Member
Tax Accountant, Hiroaki Matsumoto Certified Tax Accountant Office

Managing Executive Officer
In charge of Fintech BusinessPresident and Representative Director, Epos Card Co., Ltd.
Director, MRI Co., Ltd.
Director, Epos Small Amount and Short Term Insurance Co., Ltd.
Director, tsumiki Co., Ltd.

I experience flow in my home garden. I have been gardening for more than a decade,and my garden is now filled year-round with small plots of a wide variety of vegetables,
ranging from daikons and napa cabbages to spinach, carrots, cucumbers, tomatoes,
corn, eggplants, bell peppers, and potatoes. Today, I have brought with me an eggplant,
which is in season now (at time of photograph). There is so much to do and no time towait, whether the task at hand be preparing the soil, sowing seeds, thinning, transplanting, or weeding. When I lose myself in these tasks, I often find myself in a peculiar state
where time evaporates and I feel at one with the task and with the soil. Gardening canbe exhausting, but it leaves me feeling refreshed. Also, the fact that my garden makes
my life a little more sustainable gives me the energy I need for the next day.

Golf is without a doubt a popular hobby. Based on my experience, there seem to bequite a few golfers at MARUI GROUP. Golf lets you get a sensible amount of exercise
while also providing important opportunities for networking with colleagues andassociates outside the Company. I generally don’t experience a flow state outside ofwork, but when I am golfing, people often tell me how impressed they are with myintense focus while putting. The moment when the surrounding sights and sounds
fade away and I am able to turn my full attention toward the hole is precisely what you
would call a state of flow. The right clubs are also an important part of golf. I haveactually gone through more than 10 putters before I found the right one. With myfavorite Piretti, I hope to start shooting more scores in the 70s.

H __Hiroaki Matsumoto

M __Masao Nakamura

M __Masahiro Aono

I started cooking back when I was still in school, and I have been at it for more than four
decades now. I love to eat, and whenever I find a dish I like, I find myself compelled toreproduce it. With my trusty kitchen knife in hand, I will attempt to make anything fromdried horse mackerel dishes to roast beef and even traditional Japanese New Year’s
delicacies. When I am cooking, I enter into a state of flow in which I am fully relaxed while
being able to unleash my creativity. The time I spend focused on cooking is the easiest
way I can experience a sense of self-actualization and an important part of my personalfulfillment. Cooking is like business, there are unlimited possibilities to be found throughdifferent combinations of ingredients, seasonings, and preparation methods. I enjoy thecooking, the eating, the drinks I pair with the dishes, and the smiles of family and friends I
share these meals with. I love cooking for all the joy it brings me.

I don’t drink, but I still love company parties. Such parties have become a rarity of late.
They were on the decline even before the COVID-19 pandemic, but the pandemic prettymuch put an end to them altogether. I used to go to these parties once every twomonths or so. We had farewell parties, welcome parties, and year-end parties. Our
company even had sports events, festivals, and field trips, which entailed parties. I still
try to arrange company parties for those people who are interested. This year, for example, I got around 100 people to attend an event in which we walked 20 kilometers to a
hot spring, where we had a party. I love talking with people as well as the process ofplanning parties, finding attendees, and performing to make the party more fun. I get into
a flow when I try to get as many smiles as I can. Today, I dressed up as Nobita, a character from the children’s TV program Doraemon, and wore this costume at our Halloween
party. We had a group of more than 10, all dressed as Nobita, walking the streets ofNakano, the area around MARUI GROUP’s head office, on the day of that party.

Managing Executive Officer
In charge of Retailing BusinessPresident and Representative Director, MARUI CO., LTD.
Safety Control Committee (Chairman)

Senior Managing Executive Officer and CSO (Chief Security Officer)
In charge of Corporate Real Estate, Architecture
President and Representative Director, MARUI HOME SERVICE Co., Ltd.
President and Representative Director, MARUI HOME SERVICE MANAGEMENT Co., Ltd.
Internal Control Committee (Chairman)
Information Security Committee (Chairman)

T __Tomoo Ishii

Senior Managing Executive Officer and CHRO (Chief Human Resources Officer)
In charge of General Affairs, Personnel, Audit, and Well-being Promotion
Human Resource Strategy Committee (Chairman)
Public Relations IR Committee (Chairman)

I have two toy poodles at home. I often take them on drives and to dog parks. In the nine
years since I got my dogs, I have searched for hotels that allow dogs whenever we take atrip. Outings with my dogs give me a feeling of excitement that I can’t feel every day. I
bought them their own car seats online so that my wife wouldn’t have to watch them inthe back seat while I was left alone in the front to drive, which could be a little stressful attimes. Riku (pictured) is less active, and he will usually just watch me drive from thepassenger seat or even fall asleep. He is so cute; I just forget all feelings of exhaustion
both on the way to and from our excursions, and actually experience a state of exuberance and deep focus. Is that flow? I also experience a state of flow when I am weighttraining, but I thought I would present a different image for this year’s message.
86

A __Akikazu Aida

Managing Executive Officer, CDO (Chief Digital Officer), and General Manager, Digital Transformation Office
In charge of Corporate Planning, Co-Creation with Future Generations, Co-Creative Investment
Director, D2C & Co. Inc.
Director, okos Co., Ltd.
Director, Muture Corporation

My everyday source of strength is working out at the gym, which is essentially a seriesof flow states. Working out with the goal of feeling the joy of surpassing my limits andclearing my mind to focus on my breathing, rather than on boosting my physicalcondition, is itself a flow state. Losing myself in concentration leaves me feelingrefreshed and mentally fulfilled. I think of myself as being a cheerful, optimistic, andstraightforward person. As such, having a change of pace like this makes it easier forme to enjoy things. At the same time, I tend to get tired of things quickly and amalways seeking new sources of stimulation. I am also a people lover and enjoy being
able to interact with a diverse range of people. This is why I am so dedicated to engaging in co-creation with various people to generate value for the betterment of society.
87Our Flow Experiences

Y __Yuko Ito

T __Takeshi Ebihara

Executive Officer in charge of Group Design Center
President and Representative Director, AIM CREATE CO., LTD.
Director, MARUI CO., LTD.

Senior Executive Officer and CIO (Chief Information Officer)
President and Representative Director, M & C SYSTEMS CO., LTD.
Director, Muture Corporation

In a world where it seems like you can do almost anything digitally, I experience a stateof flow when I’m on the side of a mountain actually exposed to the elements. When I
was still at school, I remember being moved by Yasushi Inoue’s novel Hyoheki (“Wall ofIce”). Inspired by this story, I set out for Karasawa Cirque in the heart of the Japan Alps
without even stopping to get the right equipment. The sense of exhilaration I felt as I
faced this rocky behemoth amid the snowy valley, set against the backdrop of a bluesky, had to be what you call flow. This was the start of my love affair with mountains. I
have scaled numerous peaks, from my local mountain to 3,000-meter giants in the
Northern Japan Alps. Even if I start to feel the effects of a strenuous climb, the hunger I
have for the fresh mountain air will always drive me to the peak. The invigorating senseof accomplishment and one-of-a-kind scenery are the greatest reward. I can also say
the same for when I am presented with a work project that I can really get absorbed in.

One thing that I really get immersed in is net fishing for ayu sweetfish. When I was akid, my dad would often take me out to the river. When net fishing, I try to enter the river
without making a noise and then focus only on casting my net in the quiet river, punctuated only by the sound of water. The feeling of anxiousness about whether I willcatch a fish the moment I cast my net into the water brings me into a state of flow.
I have been net fishing for a number of years, and I have come to learn the type ofplaces where sweetfish like to hide. I absorbed this knowledge through the series ofsuccesses and failures that has been my fishing career, but I cannot be completely
sure of the accuracy of this knowledge. I want to use the level of concentration I
experience when fishing to contribute to improved corporate value for MARUI GROUP.

M __Mayuki Igayama

N __Naofumi Tsuchiya

Executive Officer
President and Representative Director, MOVING CO., LTD.

Executive Officer and CDXO (Chief Digital Transformation Officer) (Non-full time)
Representative Director and CEO, Goodpatch Inc.
Director, Muture Corporation

I grew up on manga. The various manga I read in my adolescence no doubt played amajor role in making me the type of person I am today. Slam Dunk, in particular, could
be said to be my personal bible. When I want to raise my motivation for work or prepare
for a major project at work, I pick up this legendary manga and reread the part about the
big game against Sannoh High, the undefeated national champion. It was Slam Dunk
that taught me to never give up and to persevere to the very end, no matter how muchthe odds are stacked against me. At work, I constantly find myself thinking about Coach
Anzai’s famous line: “When you give up, that’s when the game is over.” I have alreadyseen the Slam Dunk movie that came out this year a ton of times. For what it’s worth,though, I wasn’t on the basketball team at school.

After joining the workforce, I got hooked on skiing. When I was a kid, I liked snow
mounds and fresh snow. Today, I set targets for the number of full runs I can do down
a mountain, from its peak to its foot, in a single day. I can clear massive courses withlengths of more than five kilometers and elevation differences of over 800 meters, like
Hakuba and Myoko, in about 10 minutes. Clearing my goals requires me to find themost comfortable position by using both my muscles and bones, and this position is
aways changing based on the snow condition or slope. If I am off balance, it can placepressure on my thighs. Sometimes, extending my knees will let me find the best
position. In this manner, I focus on interpreting the feedback between my bones andthe snow, and nothing beats the feeling of accomplishment when I reach the bottom.
Every year, the distance and the number of runs I can ski increases. This makes me
feel that I can continue to grow and evolve, no matter how old I get, as long as I makethe effort.

T __Tatsuo Niitsu
M __Masahisa Aoki
Executive Officer
CEO, tsumiki Co., Ltd.

I have loved motorcycles since the age of 17, and I am 54 now. Motorcycles are lesscomplete than cars, having only two wheels, and this means that they are most stable
when accelerating on a straightaway or a curve. The weakest level of stability occurs
when cruising at low speeds. As such, riding involves quickly accelerating from a stop,
having the courage to slow down before a dangerous curve, and checking that it is safe
before accelerating again. Of course, you have to do all of this while following the rulesof the road. There is a lot of overlap between this process and my job, like when it
comes to developing new businesses. No matter how old I get, I want to keep accelerating and evolving, going full speed whether at work or on the road, to live up to theaspirations of my younger self.
88

Executive Officer
Director and General Manager, E-Commerce Business Department, MARUI CO., LTD.
Director, MOVING CO., LTD.
Director, okos Co., Ltd.

My hobby is travel. I particularly like to travel to different countries. After the start of
the COVID-19 pandemic, however, my travels have been limited to Japan, but this has
provided me with an opportunity to reconnect with the beauty of this country. In thepast couple of years, I have visited Okinawa, southern Kyushu, Shimane, Hiroshima,
Yamaguchi, Kusatsu, and Hokkaido, and even have taken a trip around Shikoku. WhenI am on a trip, I try to find things I can get immersed in. In the past, this has included
diving in Okinawa, visiting art and other museums, and touring shrines and temples.
What I get most lost in, though, is planning my trips. Researching online where I want
to go and deciding how to get the most out of a trip in the least amount of time reallygets the dopamine flowing. I remember having a lot of fun adjusting my plans toinclude a trip around Shikoku when heavy snowfall in the Chugoku region forced me tocancel my plans to go there. Not only that, the scenery I saw in Shikoku was amazing,
truly making it a trip to remember.
89

Our Flow Experiences

A __Ayumi Hiromatsu

Executive Officer
Director and General Manager, Digital Promotion Department, M & C SYSTEMS CO., LTD.
Director, Epos Card Co., Ltd.

My love for horses inspired me to take up horse riding around when I was 30. Horseriding lets me feel a sense of improvement that can only be found in sports. I am alsoable to become immersed in the emotionally invigorating act of taking care of horses
while feeling their gentle gaze and in the sensation of riding. When I got to cantering, it
was even more fun. I experience a feeling of liberation when galloping across an open
plain or along the coast. Once, when I was galloping toward the horizon in Mongolia, I
was filled with a desire to continue riding headlong to the ends of the earth. It was such
an amazing feeling of immersion and liberation, exactly what you might call flow.
Horses are sensitive creatures, and they are able to detect and respond to our feelings.
This is why I really recommend horse riding to anyone who wants a sport that leaves
them feeling emotionally refreshed.

Y __Yuko Shiota

Executive Officer and General Manager, Sustainability Department and ESG Promotion Department

I experienced flow during the process of launching the Kesou brand. Our team started
from scratch, working for two years to create the world’s most sustainable shoes. There
were days when it felt like we had lost more progress than we had gained. Nevertheless,I continued to think about Kesou every day, becoming completely obsessed with thebrand. It was thus all the more moving when we had finally launched the brand, andcustomers starting buying the shoes and giving us messages of approval. I remember
the frustration felt when the COVID-19 pandemic delayed our shipping the brand andthe sense of appreciation for the customers who supported us regardless. I was able
to experience the full spectrum of emotions through the process of developing Kesou.
As a result, I now feel like I can keep going no matter what life throws at me. I do notexperience a state of flow in my daily life, but I think it’s a great thing to be able toexperience such a state at work, where we spend so much of our time.

J __Jiro Ishioka

A __Atsushi Nagasao

Executive Officer
Director and General Manager, Sales Planning Division, MARUI CO., LTD.
Director, Epos Card Co., Ltd.

Executive Officer and General Manager, Corporate Planning Division
Director, AIM CREATE CO., LTD.

I love basketball, and I have been playing it since junior high. I especially love making
three-point shots. When I make one shot, it’s a really good feeling, but when I sink fiveor six in a row, that is when I experience true exhilaration that makes me oblivious to
the sounds around me. The more I succeed, the better I feel and the more motivated I
am to pursue further success. I can’t help but wonder if this feeling is a flow state. I
have always been the type of person who searches for ways to enjoy even the mostchallenging tasks, and this commitment to enjoyment drives me to seek results. I
might even say the feeling of enjoyment I get from success is a flow experience for me.
I want to continue to tackle various new challenges so that I can also experience new
types of enjoyment.

T __Takahiro Matsumoto

T __Takeaki Yamane

I remember letting out a roar of excitement when Japan secured a ticket to the 2024
Paris Olympic Games at the FIBA Basketball World Cup 2023. I tend not to get overly
excited about things, but basketball has always been an exception. I have never experienced a more overwhelming state of flow after scoring a series of baskets and feeling
unstoppable, but I do sometimes experience more down-to-earth flow states, like being
able to jump a bit higher than usual on occasion. My flow states tend to have acommon trigger: having fun despite struggling to pull ahead in a close game. The samegoes for work; even when I feel behind without a clear path to success, I am still enjoying myself on some level. I hope to continue to enjoy the sense of pressure and tension
as I contribute to improvements in MARUI GROUP’s corporate value.

I am hooked on camping. My favorite things about camping are pitching the tent,sitting by the campfire at night, and drinking my morning coffee, in that order. Pitching
the tent is probably the part of camping that is most similar to experiencing a flow
state, which involves losing track of oneself and time moving more quickly. The firstthing you do when you get to a campsite is to set up the tent, and I go about this taskwith a sense of exhilaration, energized by the fact that I have just arrived at camp. If I
succeed in pitching the tent in a visually appealing manner, without any unsightly
creases, I can enjoy that sight throughout the duration of my time at camp. This is why
I devote such attention to the tent. If I don’t get it right, I will often reposition the frameand start over. The more I do this, the better I get. It brings me great joy when people
praise how good I have gotten lately at pitching a tent.

Executive Officer
General Manager, General Affairs Division
Director, MARUI FACILITIES Co., Ltd.

90

On days off, I frequent public baths and hot springs, and I love to soak in the open sky
while enjoying outdoor baths. Gazing at the sky is not something I normally have theopportunity to do, but when I am able to relax and look up, I start to feel like the sky is
actually really close or that the clouds are moving at incredible speeds. My gears tend
to be turning quite a bit when this happens, and it is not uncommon for an idea tosuddenly pop into my head that solves a problem that has been troubling me for quite
some time. When I have the time, I can spend hours in the bath, and I always lookforward to a beer after the bath. Lately, I have been getting into craft beer, and I keep astock of beers of different tastes at all times. I do admit, though, that drinking after
exercising might be the better idea!

Executive Officer, Project A Product Owner
Director and General Manager, Fintech Business Department, Epos Card Co., Ltd.

91

Officer Skill Matrix

For information on officer backgrounds, please refer to thefollowing website.
www.0101maruigroup.co.jp/en/ci/officer/

CliftonStrengths®

92

Investments instart-up companies

Audit & Supervisory Board Member (Full time)

New businessdevelopment

Hitoshi Kawai

FintechDirector, Senior Executive Officer, and CWO (Chief Well-being
Officer)

Retailing

Reiko Kojima

Digitaltransformation

Director, Managing Executive Officer, and CFO

Well-being

Hirotsugu Kato

Sustainability

External Director

Innovation

Peter David Pedersen

Risk management

External Director©2021 Gallup, Inc. Unauthorized reproduction and replication is prohibited. Gallup®, StrengthsFinder®, CliftonStrengthsFinder®, and thenames of the 34 CliftonStrengths® are trademarks of Gallup, Inc.

Unique Skills
Corporate
governanceYasunori Nakagami

Finances

External Director

Human resource
management

Etsuko Okajima

Management
strategy
formulation

President and Representative Director, Representative Executive
Officer, CEO

Corporate
management

Domain of Overall
Strengths: Top 5

Hiroshi Aoi

Shared Skills

For information on CliftonStrengths®, please refer to the following website.
www.gallup.com/cliftonstrengths/en/253715/34-cliftonstrengths-themes.aspx

Basis for Skills

1. Futuristic
2. Ideation
3. Learner
4. Belief
5. Individualization• Corporate management: Experience as president and representative director (April 2005 to present)• Management strategy formulation: Involvement in corporate planning since prior to becoming president and representative director and in formulation of medium-term management plans collectively encompassing period spanning from 2014 to 2026 as president and representative director• Finances: Oversight of capital policies as president and representative director• Risk management: Chairman of the Compliance Promotion Board responsible for Groupwide risk management (October 2005 to present)• Innovation: Leadership of business model innovation and evolution through measures including transition to fixed-term rental contracts, development of stores that do not sell,
and redefinition of credit card business as fintech business• Sustainability/Well-being: Promotion of Groupwide ESG initiatives, including 2019 establishment and disclosure of MARUI GROUP’s 2050 Vision; participation in World Economic
Forum’s Global Future Council on Japan and other sustainability- and well-being-related committees• Digital transformation: Definition of vision for stores for post-digital era and promotion of stores that do not sell, housing tenants like D2C brands and content and subscription service providers• Retailing/Fintech: Oversight of retailing and fintech businesses as president and representative director• New business development: Leadership of launch of several new business projects through direct oversight• Investments in start-up companies: Involvement in decisions to conduct investments totaling ¥26.9 billion in 53 start-up companies (as of March 31, 2023)

1. Activator
2. Communication
3. Maximizer
4. Individualization
5. Achiever• Corporate management: Experience as representative and CEO of GLOBIS Management Bank (July 2005 to May 2007) and president & CEO of ProNova Inc. (June 2007 to present)• Management strategy formulation/Human resource management: Extensive track record as a management consulting expert specializing in management team enhancement
and leader cultivation; involvement in cultivation of future leaders at MARUI GROUP• Finances/Corporate governance: Extensive knowledge regarding finances and corporate governance gained from serving as an outside director at various companies• Innovation: Discussions with managers and support for corporate innovation as part of main business• Sustainability: Support for promoting diversity at various companies as part of main business, leadership in promoting empowerment of female employees at MARUI GROUP• Well-being: Experience leading discussions on improving corporate value through well-being as chairperson of Nikkei Well-being Initiative roundtable discussion committee (Marchto December 2021)• New business development: Establishment of ProNova Inc. in June 2007
• Investments in start-up companies: Insight regarding start-up companies gained as advisory board member of committee seeing participation by leaders in start-up company
management

1. Strategic
2. Activator
3. Ideation
4. Futuristic
5. Command• Corporate management: Experience as representative director and CEO of Asuka Corporate Advisory Co., Ltd. (March 2005 to July 2013) and representative director and CEO of
Misaki Capital Inc. (October 2013 to present)• Management strategy formulation: Two decades of experience providing management consulting services to a wide range of industries• Finances/Risk management: Insight regarding finances and investment-related risk management gained through years of involvement in investing• Corporate governance: Insight related to corporate governance gained as chairman of the Independent Directors Committee of the Japan Association of Corporate Directors(February 2018 to present)• Innovation: Establishment of unique investment style by advocating new concept of being an engaged shareholder that works together with companies and their management• New business development: Establishment of Misaki Capital Inc. in October 2013

1. Strategic
2. Input
3. Futuristic
4. Responsibility
5. Connectedness• Corporate management: Experience as CEO of E-Square Inc. (September 2000 to October 2011), representative director of Next Leaders’ Initiative for Sustainability (January 2015
to present)• Management strategy formulation: Guidance of strategy formulation for collaboration with new companies and managers focused on environmental initiatives and Lifestyles of
Health and Sustainability (LOHAS) and for related projects in self-established companies and NPOs
• Human resource management: Cultivation of future leaders as representative director of Next Leaders’ Initiative for Sustainability• Innovation: Advancement of numerous innovative sustainability initiatives, including introducing Japan to the concept of LOHAS, together with companies, universities, and government agencies• Sustainability/Well-being: Co-founding of CSR and environmental consulting firm E-Square Inc. as start of more than 20-year career as sustainability specialist• New business development: Founding of E-Square Inc., Next Leaders’ Initiative for Sustainability, and various other companies

1. Harmony
2. Analytical
3. Responsibility
4. Consistency
5. Individualization• Corporate management: Experience as president and representative director of D2C & Co. Inc. (January 2020 to present)• Management strategy formulation/Corporate governance: Leadership of formulation of medium-term management plans and establishment and evolution of corporate governance systems as general manager of the Corporate Planning Division (April 2013 to March 2017)• Finances: Background centered on finance and accounting divisions dating back to joining MARUI GROUP and experience as CFO (April 2019 to present)• Risk management: Member of the Compliance Promotion Board responsible for Groupwide risk management (October 2015 to present)• Innovation: Spearheading of capital measures including promotion of targeted balance sheet from perspective of investors since 2016
• Sustainability: Promotion of sustainability initiatives and proactive disclosure as officer in charge of sustainability and ESG promotion (October 2016 to present)• Digital transformation: Leadership of Groupwide digital strategies as CDO (October 2017 to March 2019) and senior managing director of M & C SYSTEMS CO., LTD.
(April 2018 to March 2019)• New business development: Leadership in establishing tsumiki Co., Ltd., a company providing cumulative investment services through EPOS cards• Investments in start-up companies: Involvement in decisions to conduct investments totaling ¥26.9 billion in 53 start-up companies (as of March 31, 2023)

1. Maximizer
2. Learner
3. Arranger
4. Achiever
5. Self-Assurance• Human resource management: Leadership in promoting wellness management contributing to improved corporate value as company physician (April 2011 to present)• Risk management: Promotion of workplace risk management measures including those for prevention of overworking and mental health issues with occupational health andsafety consultant qualifications• Innovation: Promotion of development of highly creative organizations by going beyond scope of duties as company physician to plan Companywide project team and programs
targeting senior management• Sustainability/Well-being: Promotion of wellness management and well-being management through Companywide project team as general manager of Wellbeing Promotion
Department (formerly Health Management Division, April 2014 to present) and CWO (May 2021 to present)

1. Ideation
2. Responsibility
3. Deliberative
4. Strategic
5. Arranger• Management strategy formulation: Insight into management strategies gained from experience as general manager of the Corporate Planning Division of Mitsubishi UFJ Morgan
Stanley Securities Co., Ltd. (January 2013 to September 2014)• Finances: Robust practical experience and insight regarding finances and accounting gained from working at a bank
• Corporate governance: Practical corporate governance insight related to business partners gained from working at a bank
• Risk management: Insight regarding financial and accounting risks gained from working at a bank93

Officer Skill Matrix

CliftonStrengths®

Akikazu Aida
Managing Executive Officer andCDO (Chief Digital Officer)

Takeshi Ebihara
Senior Executive Officer andCIO (Chief Information Officer)

94

Investments instart-up companies

Managing Executive Officer

New businessdevelopment

Masahiro Aono

FintechManaging Executive Officer

Retailing

Yoshinori Saito

Digitaltransformation

Senior Managing Executive Officer and CHRO (Chief Human
Resources Officer)

Well-being

Tomoo Ishii

Sustainability

Senior Managing Executive Officer and CSO (Chief Security
Officer)Innovation

Masao Nakamura

Risk management

External Audit & Supervisory Board Member

Unique Skills
Corporate
governance

Hiroaki Matsumoto

Finances

External Audit & Supervisory Board Member

Human resource
management

Yoko Suzuki

1. Maximizer
2. Strategic
3. Ideation
4. Adaptability
5. Relator

Management
strategy
formulation

Audit & Supervisory Board Member (Full time)

Corporate
management

Domain of Overall
Strengths: Top 5

Hajime Sasaki

Shared Skills

Basis for Skills• Corporate management: Experience as president and representative director of MARUI CO., LTD. (April 2016 to March 2019), and president and representative director of AIM
CREATE CO., LTD. (April 2019 to March 2022)• Management strategy formulation: Establishment of medium-term management plan for the retailing business encompassing period spanning from 2016 to 2020 as president
and representative director of MARUI CO., LTD.
• Risk management: Member of the Compliance Promotion Board responsible for Groupwide risk management (October 2014 to March 2022)• Innovation/Retailing: Robust retailing experience as president and representative director of MARUI CO., LTD.; promotion of retailing business structure reforms through transition
to fixed-term rental contracts• Sustainability: Promotion of sustainability in the construction field through collaboration with Sumitomo Forestry Co., Ltd., conducted as president and representative director of
AIM CREATE CO., LTD.
• Retailing: Experience as officer in charge of retailing and store operation business (April 2015 to March 2016) and president and representative director of MARUI CO., LTD.
• Fintech: Experience as director and general manager of the Card Planning Division (October 2007 to September 2009) and director of Epos Card Co., Ltd. (April 2015 to March 2016)

1. Positivity
2. Includer
3. Achiever
4. Communication
5. Strategic• Corporate governance/Risk management: Highly specialized insight as attorney; extensive knowledge on corporate legal affairs and legal compliance audits founded on robust
experience and insight gained as outside director, corporate auditor, etc., at other companies• Retailing: Insight on retailing from perspective of corporate auditor gained in positions as an outside corporate auditor at retailing companies

1. Harmony
2. Responsibility
3. Consistency
4. Discipline
5. Deliberative• Finances: Specialized expertise and robust experience regarding financial and accounting gained as director of the Kumamoto Regional Tax Bureau• Corporate governance/Risk management: Qualifications as certified public tax accountant; experience as corporate auditor at other companies

1. Individualization
2. Arranger
3. Maximizer
4. Woo5. Communication• Corporate management: Experience as president and representative director of MOVING CO., LTD. (April 2010 to March 2011); president and representative director of MARUI CO.,LTD. (April 2011 to March 2016); president and representative director of AIM CREATE CO., LTD. (April 2016 to March 2019); and president and representative director of MARUIHOME SERVICE Co., Ltd. (April 2021 to present)• Management strategy formulation/Finances/Corporate governance: Experience as general manager of the Corporate Planning Division (March 2008 to March 2011) and officer incharge of corporate planning (April 2019 to March 2022)• Risk management: Oversight of Groupwide risk management as CSO (April 2021 to present)• Innovation: Promotion of retailing business structure reforms through transition to fixed-term rental contracts• Retailing: Experience as officer in charge of retailing business (April 2015 to September 2017 and April 2020 to March 2021) and president and representative director of MARUICO., LTD.
• Fintech: Experience as officer in charge of fintech business (October 2017 to March 2020)

1. Analytical
2. Significance
3. Responsibility
4. Restorative
5. Relator• Corporate management: Experience as president and representative director of MARUI FACILITIES Co., Ltd. (formerly CSC Service Co., Ltd., October 2008 to March 2013) and president and representative director of MOVING CO., LTD. (April 2017 to March 2019)• Human resource management: Experience as general manager of the Personnel Division (April 2013 to March 2016), officer in charge of personnel (April 2016 to present), and
CHRO (May 2021 to present)• Corporate governance/Risk management: Experience as general manager of the Group Compliance Division (October 2005 to September 2007), general manager of the General
Affairs Division (October 2007 to March 2013), and officer in charge of general affairs (April 2013 to present)• Sustainability: Experience as officer in charge of CSR promotion (September 2007 to March 2013)• Well-being: Experience as CHO (formerly Chief Operating Officer of Healthcare Promotion, April 2015 to May 2021) and officer in charge of wellness promotion (formerly officer incharge of healthcare promotion, April 2015 to present)• Retailing: Experience as deputy store manager in charge of general affairs at Tachikawa Marui (January to December 1999)

1. Consistency
2. Harmony
3. Analytical
4. Significance
5. Relator• Corporate management: Experience as president and representative director of Epos Card Co., Ltd. (April 2016 to present)• Management strategy formulation: Establishment of medium-term management plans for the fintech business, collectively encompassing period spanning from 2016 to 2026 aspresident and representative director of Epos Card Co., Ltd.
• Finances: Experience as general manager of the Financial Department (July 2008 to March 2011)• Risk management: Insight regarding fintech-specific risks like delinquent debt and information security gained as president and representative director of Epos Card Co., Ltd.
• Innovation: Promotion of unique strategy of maximizing share of household finances through expansion of rent guarantee services, etc.
• Retailing: Experience as general manager of the Direct Marketing Department (April 2011 to March 2012) and the Demand Survey Department of MARUI CO., LTD. (April 2012 toMarch 2013)• Fintech: Experience as president and representative director of Epos Card Co., Ltd., and officer in charge of fintech business (April 2020 to present)

1. Positivity
2. Maximizer
3. Ideation
4. Intellection
5. Woo• Corporate management: Experience as president and representative director of MARUI CO., LTD. (July 2020 to present)• Management strategy formulation: Establishment of medium-term management plan for the retailing business encompassing period spanning from 2021 to 2026 as president
and representative director of MARUI CO., LTD.
• Risk management: Member of the Compliance Promotion Board responsible for Groupwide risk management (April 2016 to March 2017 and October 2019 to present)• Innovation: Promotion of retailing business structure reforms through transition to fixed-term rental contracts• Retailing: Experience as president and representative director of MARUI CO., LTD., and officer in charge of retailing business (April 2021 to present)

1. Woo2. Achiever
3. Communication
4. Positivity
5. Analytical• Corporate management: Experience as managing director of Marui (Shanghai) Co., Ltd. (April 2011 to March 2014)• Management strategy formulation/Finances/Corporate governance: Experience as general manager of the Corporate Planning Division (April 2017 to March 2022) and officer incharge of corporate planning (April 2022 to present)• Risk management: Member of the Compliance Promotion Board responsible for Groupwide risk management (April 2019 to present)• Innovation: Promotion of increased investments in non-tangible assets for creating new businesses and transition to intellectual creation company as general manager of the
Corporate Planning Division and officer in charge of co-creative investment (October 2021 to present)• Digital transformation: Oversight of digital transformation strategies as general manager of the Customer Success Division (October 2018 to March 2022), CDO (April 2021 topresent), and general manager of the Digital Transformation Office (September 2022 to present)• Retailing: Experience as deputy store manager of Yurakucho Marui (April 2013 to March 2014) and Hakata Marui (April 2016 to March 2017)• New business development/Investments in start-up companies: Experience as director of D2C & Co. Inc. (January 2020 to present); director of okos Co., Ltd. (May 2021 to present); general manager of the New Project Division (April 2022 to March 2023); and officer in charge of co-creative investment

1. Harmony
2. Responsibility
3. Positivity
4. Includer
5. Restorative• Corporate management: Experience as president and representative director of M & C SYSTEMS CO., LTD. (April 2021 to present)• Risk management: Oversight of information security risk management as CIO (April 2021 to present) and president and representative director of M & C SYSTEMS CO., LTD.
• Digital transformation: Experience as director and general manager of the Digital Transformation Promotion Department of M & C SYSTEMS CO., LTD. (April 2019 to March 2021);
CDO (April 2019 to March 2021); and president and representative Director, M & C SYSTEMS CO., LTD. (April 2021 to present)• Fintech: Experience as general manager of the Systems Department (April 2014 to March 2018) and director of Epos Card Co., Ltd. (April 2018 to March 2021)

95

Officer Skill Matrix

CliftonStrengths®

Takahiro Matsumoto
Executive Officer

Yuko Shiota
Executive Officer

Atsushi Nagasao
Executive Officer

Takeaki Yamane
Executive Officer

96

Investments instart-up companies

Executive Officer

New businessdevelopment

Jiro Ishioka

FintechExecutive Officer

Retailing

Ayumi Hiromatsu

Digitaltransformation

Executive Officer

Well-being

Tatsuo Niitsu

Sustainability

Executive Officer

Innovation

Mayuki Igayama

Risk management

Executive Officer

Unique Skills
Corporate
governanceYuko Ito

Finances

Executive Officer

Human resource
management

Masahisa Aoki

Management
strategy
formulation

Executive Officer and CDXO
(Chief Digital Transformation Officer) (Non-full time)

Corporate
management

Domain of Overall
Strengths: Top 5

Naofumi Tsuchiya

Shared Skills

Basis for Skills

1. Strategic
2. Activator
3. Ideation
4. Woo5. Communication• Corporate management: Experience as representative director and CEO of Goodpatch Inc. (September 2011 to present)• Management strategy formulation/Human resource management/Innovation/Digital transformation: Experience supporting innovation at a number of companies through therecruitment and training of digital transformation strategy, user experience design, and digital technology professionals as a digital transformation and user experience expert• New business development: Establishment of Goodpatch Inc. in September 2011
• Investments in start-up companies: Experience supporting numerous start-up companies through development of products founded on strengths in user interface and user experience design and wide-ranging insight pertaining to start-up companies

1. Positivity
2. Maximizer
3. Harmony
4. Individualization
5. Includer• Corporate management: Experience as president and representative director of MARUI CO., LTD. (April 2019 to June 2020) and CEO of tsumiki Co., Ltd. (October 2021 to present)• Risk management: Member of the Compliance Promotion Board responsible for Groupwide risk management (April 2019 to present)• Innovation/New business development: Proposal of anime business; pioneering of MARUI GROUP’s development of new businesses; and growth of anime business and contribution to transformation of retailing business as general manager of Anime Business Department (April 2016 to March 2019) and officer in charge of the anime business (April 2018
to March 2020)• Sustainability: Promotion of reuse and recycling initiatives as chief manager in charge of apparel recycling project (April 2010 to March 2011)• Retailing: Experience as store manager of Shinjuku Marui Annex (April to September 2015) and president and representative director of MARUI CO., LTD.
• Fintech: CEO of tsumiki Co., Ltd. (October 2021 to present)• New business development: Experience as general manager of Co-Creative Investment Department (July 2020 to September 2021) and director of D2C & Co. Inc. (July 2020 to
September 2021)

1. Discipline
2. Analytical
3. Deliberative
4. Focus
5. Responsibility• Corporate management: Experience as president and representative director of AIM CREATE CO., LTD. (April 2022 to present)• Innovation: Leadership of Groupwide design management through open innovation with nendo inc. as general manager of the Group Design Center (April 2018 to March 2022) andofficer in charge of Group Design Center (April 2022 to present)• Sustainability: Promotion of sustainability in the construction field through collaboration with Sumitomo Forestry Co., Ltd., conducted as director (April 2012 to March 2022) andpresident and representative director of AIM CREATE CO., LTD. (April 2022 to present)• Retailing: Experience as director of MARUI CO., LTD. (April 2019 to present)

1. Analytical
2. Ideation
3. Achiever
4. Arranger
5. Responsibility• Corporate management: Experience as president and representative director of MOVING CO., LTD. (April 2019 to present)• Risk management: Member of the Compliance Promotion Board responsible for Groupwide risk management (April 2016 to March 2017 and April 2019 to present)• Retailing: Experience as director and general manager of the Direct Marketing Department (April 2014 to March 2016) and director and general manager of the Omni-Channel
Retailing Division of MARUI CO., LTD. (April 2016 to March 2019)

1. Individualization
2. Ideation
3. Arranger
4. Maximizer
5. Futuristic• Digital transformation: Promotion of collaboration with artificial intelligence technology companies as director of okos Co., Ltd. (May 2021 to present)• Retailing: Experience as director and general manager of Sales Planning Division (April 2019 to March 2021), and director and general manager of the E-Commerce Business
Department of MARUI CO., LTD. (April 2021 to present)• Fintech: Experience as director of Epos Card Co., Ltd. (April 2016 to March 2019)• New business development: Robust experience in new business development gained as leader of multiple new business projects

1. Ideation
2. Responsibility
3. Belief
4. Harmony
5. Consistency• Sustainability/Well-being: Promotion of diversity as general manager of the Diversity Promotion Section of the Personnel Division (April 2014 to March 2018) and while balancing
child-rearing and work through use of the shortened working hour system• Digital transformation: Experience as director and general manager of the System Planning Department (April 2019 to March 2021), director and general manager of the Customer
System Development Department (April 2021 to March 2022), and director and general manager of the Digital Promotion Department of M & C SYSTEMS CO., LTD. (April 2022 topresent)• Fintech: Experience as general manager of the Business Planning Department (April 2008 to March 2010), general manager of the Credit Management Department (April 2010 toJanuary 2011), and director of Epos Card Co., Ltd. (April 2022 to present)

1. Strategic
2. Maximizer
3. Learner
4. Achiever
5. Ideation• Human resource management: Experience as general manager of the Personnel Division (April 2020 to March 2023)• Retailing: Experience as deputy store manager of Hakata Marui (April 2016 to March 2017) and general manager of the Sales Planning Division of MARUI CO., LTD. (April 2023
to present)

1. Harmony
2. Achiever
3. Deliberative
4. Analytical
5. Responsibility• Corporate governance/Risk management: Experience as general manager of the General Affairs Division (April 2021 to present)

1. Learner
2. Intellection
3. Achiever
4. Significance5. Context• Sustainability: Experience as chief manager in charge of CSR at CSR Promotion Department (April 2016 to March 2017), chief manager in charge of sustainability at Sustainability
Department (April 2017 and March 2019), and general manager of Sustainability Department and ESG Promotion Department (April 2022 to present)• Retailing: Experience as deputy store manager of Kawasaki Marui (October 2013 to March 2014) and chief manager of the Hakata Demand Marketing Section of the Sales
Planning Division (April 2014 to March 2016)• New business development: Experience as chief manager in charge of co-creative businesses in new business projects (October 2019 to March 2021) and general manager of the
Co-Creative Business Department of okos Co., Ltd. (April 2021 to March 2022)

1. Harmony
2. Analytical
3. Maximizer
4. Relator
5. Positivity• Management strategy formulation/Corporate governance: Experience as general manager of the Corporate Planning Division (April 2022 to present)• Finances: Experience as chief manager of the Dispatch and Storage Section of the Financial Department (April 2017 to March 2019) and chief manager in charge of corporate
planning at the Corporate Planning Division (April 2019 to March 2022)

1. Analytical
2. Deliberative
3. Relator
4. Individualization
5. Competition• Retailing: Experience as chief manager of the Needs and Sales Promotion Section of the Sales Planning Division of MARUI CO., LTD. (April 2015 to March 2016)• Fintech: Experience as general manager of the Sales Planning Division (April 2021 to March 2022) and general manager of Fintech Business Department of Epos Card Co., Ltd.
(April 2022 to present)97