CO-CREATION
Co-Creation Management Report 2015

PROFILEMARUI GROUP is a conglomerate that provides fulfilling lifestyles tocustomers of all ages through its retailing and credit card operations.
Since its founding in 1931, MARUI has employed a business model
merging retailing and credit card operations, and it has thereby­established unique strengths and an undisputed position in theJapanese retail industry.
Today, the Group has grown to include 27 retail venues in Japan
staffed by approximately 6,000 employees. Its Credit Card Services
business, currently a major proponent in MARUI GROUP’s evolution,
has amassed nearly 6 million cardholders, and total card transactions
exceeded ¥1 trillion for the first time in the fiscal year ended
March 31, 2015.
We are practicing co-creation management based on customer
perspectives as we push forward with various business model reforms
to accelerate our advance to a new growth stage.

About Front Cover Design
The three overlapping circles on the front cover of this report represent
respectively our customers, society, and MARUI GROUP itself. The Group’s
co-creation management is aimed at the co-creation of customer happinessrealized by forming intrinsic links between customers, society, and the Group.
The front cover design is a representation of this goal.

CO-CREATION
Co-Creation Management Report 2015

Contents— MARUI GROUP
Co-Creation Management Report 2015

page
page

05

MARUI GROUP’s
Co-Creation
MARUI GROUP views co-creation as the process ofincorporating customer perspectives into all businessprocesses to work together with partners to create
happiness for customers.

06
08
10
12
14
16
18
20
25
27

02

Our Vision
Our Ambition
To Our Stakeholders
Directors andAudit & Supervisory Board Members
Executive Officers
Overview of MARUI GROUP(Fiscal Year Ended March 31, 2015)
Financial and Non-Financial Highlights
Message from the President
Message from the CFO
Messages from the External Directors

31

Co-Creation Business
MARUI GROUP’s co-creation business merges
retailing and credit card operations to provide joy
to customers seeking more-fulfilling lifestyles.

32 History of Innovation and Evolution
34	Transformation into a Lifestyle Co-Creation Company
36	Transformation 01: New Credit Card Business38 Transformation 02: New Store Brand
40 Transformation 03: Creation of New Private Brands

page

63

Co-Creation Engagement
MARUI GROUP is cultivating a corporate culturethat encourages all employees to contribute to
management with the aim of advancing co-creation
management on a Groupwide basis.
64	Cultivation of a Co-Creation Management
Corporate Culture66	Diversity Subcommittee 01:
Profession Changes
68	Diversity Subcommittee 02:
Contributions of Female Employees
70	Marui Future Subcommittee: Contributions toSociety through Business Activities
72	Corporate Governance78	Directors, Audit & Supervisory Board Members,
and Executive Officers

page 43
CO-CREATION OF VALUE
44	Feature 01:
Transactions Exceed ¥1 Trillion: EPOS Cards
46	Feature 02:
Nationwide Expansion: Two-Pronged Strategy
Utilizing Marui and Modi
48	Feature 03:
First Kyushu Location: Hakata Marui
50	Feature 04:
Quest for Unrivaled Comfort:
Rakuchin Kirei Pumps

54
56
58
60

MARUI GROUP’s Three Business Segments
Retailing and Store Operation
Credit Card Services
Retailing-Related Services

Editorial Policy
Co-Creation Management Report 2015 was created with the aim of helping our share­
holders, other investors, and various other stakeholders develop a better understandingof MARUI GROUP. This report contains performance, business, and financial information
centered on the Group’s corporate philosophy and business strategies. As an integrated
report, it also includes information on the environmental, social, and governance (ESG)
activities that support the Group’s sustainable growth. The International Integrated
Reporting Framework released by the International Integrated Reporting Council in
December 2013 was referenced in the development of this report.
Cautionary Notice regarding Forward-Looking Statements
Performance forecasts and other forward-looking statements contained in this report
represent the Group’s best judgments based on information available at the time of thisreport’s publication and therefore contain a degree of uncertainty. It is possible that actual
performance could differ materially from these forecasts due to a variety of factors.
Economic conditions, foreign exchange rates, and stock price movements are among thefactors that could have a major impact on performance.

page

85

Financial Information / Corporate Information
86 Financial and Non-Financial Summary
88	Management’s Discussion
and Analysis of Operations
92	Consolidated Balance Sheets
93	Consolidated Statements of Income /Consolidated Statements ofComprehensive Income
94	Consolidated Statements of
Changes in Net Assets
95	Consolidated Statements of Cash Flows96	Notes to Consolidated Financial Statements
119	Independent Auditor’s Report120	Corporate History122	MARUI GROUP’s Business126	MARUI GROUP Store Network128	Overview of MARUI GROUP

03

04

MARUI GROUP’s
Co-Creation
MARUI GROUP views co-creation as the process of incorporating
customer perspectives into all business processes to work together
with partners to create happiness for customers.

05

OUR VISION

Creating Customer Happiness
Together with Our Partners
We are developing frameworks to incorporate customer

This type of co-creation business in which theperspectives into store development, product creation,

Group and customers co-create happiness together

credit card services, and all other business processes.

represents the foundation of our operations. In the

The form of happiness sought by customers is increas-

co-creation process, not only customers but also busi-

ingly being found in more-fulfilling lifestyles. Accordingly,

ness partners, community members, and employees

we are transforming our business model by holding

are seen as important “partners.” Feedback from allplanning meetings with customers for individual projects

these partners is incorporated in MARUI GROUP’s

to maintain an up-to-date understanding of their needs

business, and this type of co-creation represents theand co-create new forms of happiness.

Company’s core strength.

06

Numbers

4,400

to dateNumber of customers to participate in theDevelopment of Shibuya MaruiA total of 4,400 customers participated in developing plans for
Shibuya Marui through Internet surveys, group meetings, and other venues.
Store atmosphere, floor concepts, and other details of store development
were discussed with customers.

16
Number ofCollaboration Card Partners

60

times a year

Women’s Shoes

planning meetings with customers

Epos Card Co., Ltd., is issuing collaboration cards with a total of
16 companies, commercial facilities, fan clubs, and other organizations across Japan (as of July 31, 2015). Cardholders can utilize
the benefits of all collaboration card partners, allowing for mutual
customer referral between MARUI and these organizations.

Around 90% of customers expressed discomfort with pumps,
but we were able to co-create a hit new line of pumps
together with customers. Customers participated in 60 planningmeetings a year, with 1,000 individuals taking part in test groups
each year.

850,000

25

Customer clothing items andshoes traded-in through the

Apparel Recycling Program
The 850,000 clothing items and shoes traded-in by customers
in the fiscal year ended March 31, 2015, were resold in stores,
used to support post-Great East Japan Earthquake reconstruction
efforts, or donated to developing countries.

t-CO2
Carbon Offset

together with local communities
CO2 emissions totaling 25 t-CO2, equivalent to the amount emitted
to manufacture the number of Rakuchin Kirei Pumps sold in March
2015, were offset through environmental preservation activities
conducted in Kobe City and Miyagi Prefecture.

07

OUR AMBITION

Co-Creating Customer Joy by
Merging Retailing and Credit Cards
We strive to bring joy to our customers. As customers

various customers have proven to be major hits.

shift away from the accumulation of physical goods toFurthermore, our Credit Card Services business is sup-pursue more-fulfilling lifestyles, we are transforming our

porting all facets of customer lifestyles with its EPOS

business model to cater to the new forms of joy custom-

cards, which were launched in 2006 and have a special

ers are beginning to seek. Accordingly, we are shifting

license from Visa Inc. that includes direct issuance rights.

toward shopping center style stores, which go beyond

In the future, we aim to add a new element of joy to cus-

simply offering apparel items to also providing dining,

tomer lifestyles in the areas of fashion, food, living, enter-other services, and other shopping experiences. In

tainment, learning, health, and beauty through our uniquecreating products, the women’s shoes lines that werebusiness model that merges retailing and credit cards.

planned by incorporating the input and desires of08

Numbers

2.6 times

Increase in Purchase Numbers
at Machida Maruiafter conversion to a lifestyle-support store

The newly converted Machida Marui has proven popular amongcustomers of all ages, with purchase numbers rising 2.6 times.

195

2

millionNumber of
Visiting Customers,

More than

Number of extra-comfortable

an indicator of popularity

A total of 195 million customers visited our Marui and Modi storesin the fiscal year ended March 31, 2015, after increases in thenumbers of restaurants and sundry goods. The total number of daily
visitors was roughly 540,000 people.

Approx.

6

million pairs

Women’s Shoes Sold

The Rakuchin series of women’s shoes have been a major hit,with more than 2 million pairs sold to date. By expanding the rangeof sizes available, we are addressing the needs of women of all ages.

millionNumber of Cardholders
shopping both inside and outside
Marui stores

There are approximately 6 million cardholders of MARUI GROUP’s
proprietary credit cards, which have a special license with Visa Inc.
(as of June 30, 2015). EPOS cards can be used while shopping
inside and outside Marui stores in Japan and overseas.

More than

7,000

Growing number of facilities
nationwide providing

EPOS Cardholder Benefits

Discounts and other benefits are provided to EPOS cardholders
at more than 7,000 facilities nationwide. We aim to further spreadsavings opportunities throughout Japan.

09

To Our Stakeholders

MARUI GROUP’s Vision
Is to Realize Co-Creation
Management.

Hiroshi Aoi
President and Representative Director
Representative Executive Officer

For the fiscal year ended March 31, 2015, MARUI GROUP
published its first integrated report. The decision to create thisreport was made based on our desire to share our policies,
values, and vision with all our stakeholders. MARUI GROUP’s
business activities are able to thrive thanks to the daily supportof shareholders and other investors as well as countless otherstakeholders, including customers, business partners, local
community members, and employees. Therefore, it is my wish
for this report to bridge the gap between the Company andall these stakeholders and thereby foster enhanced mutual
understanding.
Our corporate philosophy calls for us to “continue evolving to better aid our customers” and “equate the developmentof our people with the development of our company.” Basedon this philosophy, our mission is to maintain ties with ourcustomers to co-create new customer happiness. It is thisdrive that has fueled our transformation and evolution inrecent years. Always striving to attend to the needs of ourcustomers and bring them joy, we treasure our interactions
with customers and accordingly base all our actions fromtheir perspective. This sentiment is not only imprinted in theGroup’s corporate DNA; it is also the point of origin for theco-creation management we envision.
At the moment, the Group’s business model is undergoinga drastic transformation. This is not to say that we will abandon our current originality and strengths. However, the focus
of Japanese society is moving away from the accumulationof physical goods to emphasize the pursuit of more-fulfilling
lifestyles, changing the form of happiness customers seek andthereby necessitating that our business changes as well. Thistransformation will require us to break away from past successes to cut a fresh start based on the perspectives of thecustomers of today. And that will be no easy task. Nonetheless,I am filled with excitement for the potential new forms ofcustomer happiness we will co-create, and I think we havefinally found the path we will tread in this quest.
I hope we can look forward to the support of all our stakeholders as we tackle the challenges that lie before us on thisbold new adventure.
August 201510

President Aoi in Yurakucho Marui in June 201511

Directors and Audit & Supervisory Board Members
As of June 25, 2015

New Management Team
Supporting Our Co-Creation
Management
Based on its co-creation management vision, MARUI GROUP
is reforming its management team to better respond to changing customer needs. For this reason, Directors and Audit &Supervisory Board members are now expected to play aneven greater role in ensuring sustainable growth and driving
medium-to-long-term improvements in corporate value.
To this end, we have reduced the number of directors
to heighten management flexibility while also strengthening
the supervisory function of the Board of Directors. In addition,
we welcomed Etsuko Okajima, Representative and CEO of
ProNova Inc., as a newly appointed external director and an
independent director as stipulated by the Tokyo Stock
Exchange. The Company now has two external and independent directors, with the other being Koichiro Horiuchi,
President and Representative Director of FUJI KYUKO CO., LTD.
With Ms. Okajima onboard, we are advancing measures tofurther empower female employees and otherwise promoteincreased diversity in the development of our people as
spoken of in our corporate philosophy.

From front left

From back left

Motohiko Sato

Takehiko Takagi

Director

External Audit & Supervisory Board Member

Koichiro Horiuchi

Tetsuji Sunami

External Director

Audit & Supervisory Board Member (Full time)

Hiroshi Aoi

Tomoo Ishii

President and Representative Director

Director

Etsuko Okajima

Masao Nakamura

External Director

Director

Hideaki Fujizuka
Audit & Supervisory Board Member (Full time)

Tadashi Ooe
External Audit & Supervisory Board Member

12

13

Executive Officers
As of June 25, 2015

In front of bust of MARUI founder Chuji Aoi in June 2015

14

New Executive Management Teamto Realize a United MARUI GROUP
We aim to provide all customers with the joy they seek. To accomplish
this goal, the Group is advancing to a new growth stage; a stage inwhich it will not be enough to merely pursue optimization on a singleGroup company or single-business basis and one in which all businesses
must be interconnected and developed as one. The vision of a United
MARUI GROUP represents our shared commitment to reaching this stage.
To help realize this vision, a new executive management team wasinstated in June 2015 to strengthen executive management on aGroupwide basis. At the same time, we are moving forward with initiatives to create a United MARUI GROUP, including actively promoting
both young and female employees and creating systems for cultivating
the next generation of executive management candidates.

From front left

From middle left

From back left

Masao Nakamura

Hajime Sasaki

Mayuki Igayama

Managing Executive Officer

Senior Executive Officer

Executive Officer

Hiroshi Aoi

Akira Ino

Yuko Ito

Representative Executive Officer

Senior Executive Officer

Executive Officer

Motohiko Sato

Toshikazu Takimoto

Masahiro Aono

Senior Managing Executive Officer

Managing Executive Officer

Executive Officer

Takashi Wakashima

Tomoo Ishii

Yoshinori Saito

Managing Executive Officer

Managing Executive Officer

Executive Officer

Nariaki Fuse

Hirotsugu Kato

Senior Executive Officer

Executive Officer

Yoshiaki Kogure

Junko Tsuda

Executive Officer

Executive Officer

15

Overview of MARUI GROUP (Fiscal Year Ended March 31, 2015)

Groupwide Performance

New Indicator for Measuring Group Growth

Operating Income

Total Group transactions

Target ¥36.0 billion or more in the fiscal year ending March 31, 2017¥¥

1,469.1 billion

Retailing-Related Services¥33.8 billion

2.1%

Credit Card Services¥1,234.3 billion

Total Group
Transactions

28.0 billion

Retailing and StoreOperation¥322.9 billion

20.3%

77.6%

* Total Group transactions is the total value of transactions from all threebusinesses less credit card transactions from Retailing and Store Operation.

Retailing-Related Services¥33.8 billion

13.5%

Credit Card Services¥68.4 billion

Revenue

27.4%

Retailing and StoreOperation¥147.6 billion

59.1%

For details, please refer to pages 18 and 19.

ROE
Target 6.0% or more in the fiscal year ending March 31, 2017

5.2%

Cash Dividends per Share / Payout Ratio
Increased dividends for three consecutive years
Conducted treasury stock acquisition of ¥15.0 billion,
targeted payout ratio of 30% or more

19 / 32.3%¥

Number of Stores

Number of Employees

Sales Floor Area

24 Marui stores
3 Modi stores

Approx. 8,000 employees,
including temporary employees

Combined sales floor area for Marui andModi stores27

storesEnvironment Preservation
Expenditure
Total expenditure for installing LED lighting to
reduce energy consumption in Marui storesand other environmental measures

1,281 million

¥

16

5,918

employees

444,040

m2

Electricity Consumption

CO2 Emissions

Approx. 80% of electricity used at Maruiand Modi stores, down 1% year on year

Approx. 70% of emissions from Marui andModi stores, down 4% year on year

199 million kWh

109,000 t-CO

2

Marui Stores

Stores by Region

Sales Floor Area by Product Category

44%■ Kanto region (excluding Tokyo)  41%■ Tokai region
4%■ Kansai region 
11%■ Tokyo 

Purchases by Gender*1

45%35%■ Restaurants, services, and other  20%■ Apparel ■ Sundries 

Purchases by Age Group*1■ Age 29 and below ■ Age 30–39 ■ Male ■ Female 

12%
88%

■ Age 40–49 ■ Age 50–59 ■ Age 60 and above 

17%
20%
21%
18%
24%

*1 Purchases using EPOS cards

EPOS Cards

Cardholders by Card Type■ Platinum/Gold cards ■ Other 

New Cardholders by Application Location

17%
83%

Transactions by Location■ Marui stores ■ Outside Marui stores ■ Inside MARUI GROUP stores(Marui/Modi) ■ Outside MARUI GROUP stores 

82%
18%

Transactions by Type

12%
88%

■ Card shopping transactions ■ Cash advance transactions 

88%
12%

17

Financial and Non-Financial Highlights
MARUI GROUP CO., LTD., and its consolidated subsidiaries

Millions of yen
Fiscal years ended March 31

2010

2011

2012

2013

2014

Total Group transactions:
Retailing and Store Operation
Credit Card Services
Retailing-Related Services
Eliminations*1
Total operating revenues
Revenue
Gross profit
Selling, general and administrative expenses
EBITDA*2
Operating income
Net income (loss)
Segment income:Retailing and Store Operation
Credit Card Services
Retailing-Related Services
Total assets
Shareholders’ equity
Installment sales accounts receivable
Consumer loans outstanding
Interest-bearing debt
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Cash and cash equivalents
Capital investments
Depreciation and amortization
Earnings (loss) per share (yen)Net assets per share (yen)Cash dividends per share (yen)Payout ratio (%)
Total return ratio (%)
Operating income margin (%)
Return on equity (%)
Return on assets (%)
Equity ratio (%)
Stock price at year-end (yen)Market capitalization (including treasury stock)(billions of yen)Price earnings ratio (times)
Price book-value ratio (times)
Total number of employees
Ratio of female employees (%)
Total number of stores
Total sales floor area (thousand m2)
Environment preservation expenditure(thousands of yen)
Electricity consumption (thousands of kWh)
CO2 emissions (t-CO2)

—
—
—
—
—
419,255—
149,926
139,488
29,695
10,438
5,104

—
—
—
—
—
406,472—
144,736
129,940
30,457
14,795(23,638)—————
412,408—
147,240
129,224
33,08518,015
5,251

2015

—
—
—
—
—
407,366—
148,172
123,886
35,23724,285
13,255

1,297,250
338,705
1,054,706
34,695(130,857)
416,460
253,077
155,726
128,579
37,134
27,146
15,4091,469,111
322,866
1,234,339
33,816(121,910)
404,947
249,847
158,144
130,10238,33828,042
16,03637
10,272
2,509
664,357
312,188
95,871
191,486
283,676
30,811(13,034)(14,519)
32,283
17,39819,257
18.65
1,140
14.0
75.1
75.1
2.5
1.6
1.5
47.0
678

2,110
13,704
1,568
628,910284,526
111,760
158,707
264,692
30,280(7,033)(22,926)
32,603
14,332
15,661(86.36)
1,039
14.0
—
—
3.6
(7.9)
2.2
45.2
537

7,547
10,6192,567
615,130
289,975
142,995
132,280
245,175
24,897(3,913)(23,660)
29,928
7,941
15,069
19.19
1,059
14.0
73.0
73.0
4.4
1.8
2.8
47.1
690

9,885
13,177
3,792
624,173
303,637
171,187
123,739
243,762
5,111
435(5,571)
29,940
7,665
10,951
48.43
1,109
15.0
31.0
31.0
6.0
4.5
3.9
48.6
975

10,562
15,634
4,523
664,019
315,446
213,466
125,215
264,824(9,227)(6,791)
16,14130,053
11,238
9,988
56.29
1,152
18.0
32.0
32.0
6.5
5.0
4.3
47.5
885

8,074
20,126
3,333
675,627
306,795
227,121
128,030
277,839
12,310(3,867)(7,267)31,229
9,786
10,296
58.87
1,166
19.0
32.3
125.3
6.9
5.2
4.2
45.4
1,365

216.0
36.4
0.6
6,847
44.7
25
453.3

171.1
—
0.5
6,492
44.4
26
457.8

219.8
36.0
0.7
6,218
44.4
27
458.4

310.6
20.1
0.9
6,101
44.3
27
453.1

282.0
15.7
0.8
5,966
44.5
27
446.5

380.3
23.2
1.2
5,918
44.6
27
444.0

633,700
259,800
130,600

893,700
244,800
114,900

1,164,500
204,500
96,3001,141,300
204,800
104,300

924,500
215,000
113,000

1,281,000
199,000
109,000*1 Eliminations under total Group transactions represent the deduction of credit card transactions recorded in Retailing and Store Operation.
*2 Earnings before interest, taxes, and depreciation and amortization

18

Introduction of New Management
Indicator—Total Group Transactions
As Marui stores are progressively converted into
shopping center style stores, their source of revenue
will change from product sales to rent revenues.
While this transition is expected to result in income
growth, it will also lead to a gradual decrease in “total
operating revenues” under the previous calculation
methods, meaning that revenue and income trends
will be inconsistent. For this reason, it was decided to
introduce the new indicator of “total Group transactions” to more accurately display the Group’s growthand management’s performance.
In addition, from the fiscal year ending March 31,
2016, the calculation method for sales through theconsignment buying system in Retailing and StoreOperation will be changed from the previous method(amount of sales made to customers) to a method
based on global standards that only records theamount of income accruing to the Company. In conjunction with this change, the line item that was previously “total operating revenues” will be displayed as“revenue.” The two new indicators are designed tomore accurately reflect the Group’s performance.

Acquisition and Cancellationof Treasury Stock
The current three-year, medium-term management
plan, which covers the period through March 31,
2017, targets improved corporate value to berealized through the implementation of growthstrategies and financial strategies. One such financial strategy is to utilize the total of operating cash
flow generated over the plan’s period to fundgrowth investments and shareholder returns.
As one facet of these efforts, treasury stockacquisitions totaling ¥50.0 billion will be conducted over the period of the plan to quickly raise
return on equity (ROE) to 6% or more and increase
shareholder value.
Based on this policy, we acquired ¥15.0 billion
worth of treasury stock in the fiscal year ended
March 31, 2015, and canceled 40 million shares oftreasury stock. Since May 2015, we have been
conducting additional treasury stock acquisitions
with an upper limit of ¥20.0 billion.

Total Group Transactions—Indicator of Group Growth
Total amount of sales from Product sales
Retailing and Store
Rent revenues from fixed-term
Operation
rental tenants
Card shopping transaction volumes
Total transaction volumes
at external affiliatesfrom Credit Card Services
Cash advance transactions, etc.

Total Grouptransactions

External sales from
Sales to business partners
Retailing-Related Services outside GroupGross profit
Operating income

Fiscal year ended March 31, 2015

Utilization of Operating Cash Flow

Capitalinvestments¥30.0 billion –¥35.0 billion

Core operating
cash flow(excluding rise inoperatingreceivables)¥100.0 billion

Growthinvestments&
Shareholder
returns¥100.0 billion

Dividends¥17.0 billion –¥18.0 billion

Capacity for
additional shareholder returns¥47.0 billion –¥53.0 billion

FY2015–FY2017
Planned treasury
stock acquisitions ofapprox. ¥50.0 billion

FY2015¥15.0 billion
completed(40 million sharescanceled)
FY2016¥20.0 billion
completed(May 15–Aug. 31,
2015)

19

Message from the President

We Will Strive to Create New Valueby Transforming Our Business Model.
The development of MARUI GROUP up until today has been grounded in its unique business model thatmerges retailing and credit card operations as well as in the corporate DNA that inspires it to innovate andrespond to the changing times. Going forward, we will aspire to create increased corporate value by practicing
co-creation management, which entails advancing our business together with customers and employees.

Hiroshi Aoi
President and Representative Director
Representative Executive Officer

MARUI GROUP’s History and DNA of Innovation

Entering the 1990s, our “young, fashion, credit cards”
business model grew less responsive to market changes

My grandfather, Chuji Aoi, founded MARUI in 1931.

following the collapse of Japan’s bubble economy.

Then, our business involved selling furniture through

MARUI thus fell into a period of stagnancy. I becamemonthly installment payments. This was the original form

president in 2005. My mission at that time was to utilizeof the business model merging retailing and credit card

MARUI’s DNA of innovation to reconstruct our business

operations that MARUI GROUP still uses today, andmodel and enable it to create new corporate value in

MARUI’s business maintained this unique characteristic

tune with the times.

throughout its history. By pursuing the modernization of
the installment payment system, my grandfather grew

Quest to Create Corporate ValueMARUI rapidly, leading the Company to issue Japan’s
first credit card in 1960.
In 1972, my father, Tadao Aoi, took up the mantle of

Reviving our retailing and credit card businesses
required that we resolve a number of issues. The firstpresident. Under his guidance, we launched a new busi-

area I addressed after becoming president was theness in 1981 in which we leveraged our credit know-

innovation of credit card services. At that time, thehow to provide cash advances, a type of small-amount

impending revision of the Money Lending Business Act

consumer loan. In the mid-1980s, MARUI established ascheduled to begin in 2007 was making the future ofunique business model that combined youth fashion

cash advance operations uncertain. To respond to thiswith credit cards, the so-called “young, fashion, creditchange, in 2006, a year before the regulation’s revision,

cards” business model, which began to fuel brisk growth.

we launched the EPOS CARD, which replaced our previ-

By 1990, the Company had established a solid position

ous in-house credit card, the Akai Card (Red Card).

in the Japanese retail industry, as indicated by its 30
consecutive years of increased sales and income.

20

21

Message from the President

To Advance to a New Stage, We Are Transforming
Retailing Operations and Refining Our Business Model
That Merges Retailing and Credit Card Operations.
EPOS cards hold a special license from Visa Inc.,

operations have now bottomed out, and the strides

enabling them to be used not only in Marui stores but

made in the Credit Card Services business in recent

also at Visa-affiliated stores worldwide. Leveraging theseyears have been greatly contributing to the creation ofcards, we implemented a strategy of compensating for

new corporate value. While it took a while, we are now

the decline in cash advance revenues by expanding cardfeeling the benefits of the innovations pursued to date.

shopping transactions, an area closely related to ourmainstay retailing operations.

Advance to New Growth Stage

However, the negative impact of the introduction of
the Money Lending Business Act revision exceeded our

The next area in which I targeted reforms was retailingexpectations. In addition, due to lost income stemming

operations. Previously, our retailing strategies had beenfrom reduced interest rates, we were required to refund

focused on youth and fashion, both of which were areas

interest collected from customers who borrowedthat Marui stores came to be equated with. We began amoney under the previous rates. This impact lingered forphased shifting toward new strategies when we opened

nine years, until 2014, and resulted in total losses of at

Yurakucho Marui in 2007.

least ¥100.0 billion to ¥150.0 billion. Over this period,

This probably goes without saying, but when Japan

we faced a harsh operating environment, recording

started seeing its birthrate decline and its population

full-year losses twice.

age, the future contraction of the youth market was

Meanwhile, card shopping transactions increased
steadily each year. Furthermore, cash advance

4897

2006

4897

GOOD
THRU
有効期限

有効期限
THRU
GOOD

the Company. We therefore decided to drastically

MONTH / YEARMONTH / YEAREPOS CARD licensed by Visa Inc.

22

apparent. Addressing this change was an urgent task for2007

Yurakucho Maruirevise our previous store development practices, which

A United MARUI GROUP

entailed product lineups centered on youth fashion.
It was at this time that we began creating stores that

Throughout its history, MARUI GROUP has created cor-offered lifestyle support, devoting more sales floor area

porate value through its unique business model, merging

to sundry items and restaurants to win the support ofretailing and credit card operations, and it continues toa wider range of age groups. However, although thesefurther refine the strengths of this model. Looking at

efforts raised customer satisfaction and subsequently

segment earnings, we see that Credit Card Services isvisitor numbers, they also had the unexpected effectcurrently supporting overall performance, and it isof lowering profitability.

expected to drive profit growth going forward. Still, we

Addressing this issue was quite difficult, taking sev-

cannot ignore the fact that the Credit Card Services

eral years. In the end, the answer was found in changing

business was built from the Retailing and Store Operation

the format of stores. Up until that point, MARUI CO., LTD.,

business and could not realize its full potential alone.

had created department stores with earnings structures

Accentuating this reality is the fact that 80% of EPOS

based on the consignment buying system. However, we

CARD applications are submitted at Marui stores. The

discovered that by transitioning toward shopping center

large portion of customers that apply for cards is a result

style stores, we could realize profitability even as weof the efforts of our employees, with their specialties inshifted from fashion-oriented to lifestyle-oriented

retail, recommending cards to customers during theirstores. This transition resulted in our core source of

shopping experience. In addition, EPOS cards are issued

earnings changing from product sales to rent revenues,

on-the-spot in stores and can therefore be used imme-

which is negatively impacting top-line sales. Profit,

diately. For this reason, the ratio of cardholders thatmeanwhile, is on the rise. We expect approximately 70%

actively use their cards is high. The link with retailingof floor space compatible with this new business model

operations is supporting the competitiveness of credit

to be converted to shopping center style stores by thecard operations. With regard to collaboration cards as

fiscal year ending March 31, 2017. After this, thewell, the retail experience of our employees is making

Retailing and Store Operation business is projected tolarge contributions to increased value for collaboration

experience a gradual increase in operating income.

partner facilities.

2014

2014

First shopping center style store—Machida Marui

HUIS TEN BOSCH Collaboration EPOS CARD

23

Message from the President

Our Co-Creation Management Is Aimed atCreating Value the Likes of which Have Never Been
Seen before within MARUI GROUP by Sharing in
the Happiness and Emotion of Customers.
At the same time, this relationship is proving benefi-of physical goods to the pursuit of more-fulfillingcial for Retailing and Store Operation, as the option of­lifestyles, shifting the interests of consumers fromusing EPOS cards to enjoy shopping on credit is helping

things to lifestyles and causing them to value individuality

increase sales. Customers of Marui stores are also often

above shared experience. The days of mass consump-

EPOS cardholders. Similarly, MARUI’s retailing expertisetion are over. As the previous seller’s market transforms

is supporting credit card operations. It is this type of

into a buyer’s market, the tactic of pressuring consumers

intrinsic link between the Group’s business and theto buy without considering their needs will cease toGroup’s human resources that creates business value

be effective.

not found among rivals.

The Group strives to practice co-creation manage-

Organically, a United MARUI GROUP is somethingment, which means to thoroughly reinforce the conceptthat has been realized naturally through the course of ourof creating together with its customers. I believe that

operations. In the future, however, we will intentionally

there is nothing more important than to maintain aand strategically build upon these links to further refine

stance of devotion toward incorporating customer

the strengths they create.

needs and creating value together and that thisapproach must be adopted whether developing stores,

Co-Creation Management

creating products, or providing new services. In thismanner, our co-creation management is aimed at creat-

Since its founding, MARUI’s Credit Card Services businessing value the likes of which have never been seen before

has operated under the basic belief that creditability

within MARUI GROUP by sharing in the happiness andshould be built together with customers. We do notemotion of customers. I am confident that creating value

assign credit to customers based on their age or theirwith our customers in this way will lead to improved

profession. Rather, it is something we build together withcorporate value.

customers through the trust we place in them. This belief

I would like to ask all our stakeholders for their on

inspires us to cherish the relationships with our various

going support and encourage them to look forward to

stakeholders, and it forms the foundation for our man-the future of MARUI GROUP with eager anticipation.

agement practices that contribute to the developmentof both the Company and society. Once again, the focus ofJapanese society is moving away from the accumulation

24

August 2015

Message from the CFOThis business is locked firmly in a growth track, recording

Overview of Performancein Fiscal Year Ended March 31, 2015

double-digit growth in both total operating revenues
and operating income, and is expected to drive overall

The fiscal year ended March 31, 2015, was the first yearof the new three-year, medium-term management plan,
which is slated to end in the fiscal year ending March 31,
2017. Performance in this year was more or less in line

performance going forward.

Allocation of Entire Three-Year Operating Cash Flow
to Growth Investments and Shareholder Returns

with our targets, with gross profit increasing for the
fourth consecutive year and operating income rising

Under the new medium-term management plan, we arefor the sixth consecutive year.

working to improve corporate value through the imple-

In Retailing and Store Operation, while sales andmentation of growth strategies and financial strategies.

income were down due to the impacts of the consump-

Our performance in the fiscal year ended March 31,

tion tax rate hike, performance still exceeded our targets.

2015, and the targets of the plan are as follows.

At the moment, we are working to improve profitability
by shifting away from our traditional department store
model, which primarily generated earnings through consignment sales, to a business model based on shopping

Management Performance and Targets
Operating income
ROE

FY2015 Performance

FY2017 Targets¥28.0 billion¥36.0 billion or more

5.2%

6.0% or higher

center style stores with tenants on fixed-term rental
contracts. Plans in this area are gradually taking shape.
In Credit Card Services, total card transactions
exceeded ¥1 trillion in the year under review.

The financial strategies aimed at achieving thesetargets call for us to allocate the entirety of the ¥100.0
billion in operating cash flow projected to be generated

We Will Quickly Achieve Our ROE
Target to Improve Corporate Value.
To improve corporate value, we will allocate the entirety of operating
cash flow projected to be generated from the Group’s business togrowth investments and shareholder returns. Financial strategies will be
implemented to achieve a capital structure suited to the scale of profits.

Motohiko Sato
Director and Senior Managing Executive Officer, and CFO

25

Message from the CFO

over the three-year period of the plan to growth invest-

Looking ahead, we will continue to issue appro­

ments and shareholder returns. We thereby hope topriate returns to shareholders to increase shareholder

quickly achieve the ROE target of 6% or higher, aftervalue while achieving a capital structure suited to thewhich we will strive to swiftly raise ROE to 8% or higher

scale of profits.

and then 10% or higher in the fiscal year ending March
31, 2018, and beyond.
During this period, between ¥30.0 billion and ¥35.0

Total Group Transactions—New Management
Indicator for New Business Modelbillion of generated cash flow will be allocated to
growth-oriented capital investments in new stores, while

MARUI GROUP has been recently pushing forward with

¥17.0 billion to ¥18.0 billion is earmarked for share-

the transformation of its business model. This transition

holder returns and ¥50.0 billion is scheduled to be usednecessitated the introduction of a new management

for treasury stock acquisitions* . The increase in working

indicator to more accurately display management perfor-

capital for Credit Card Services is to be funded entirely

mance. Accordingly, we created “total Group transactions”

through external financing.

as a new top-line indicator that is effectively linked to1*1 For details, please refer to Acquisition and Cancellation of Treasury Stockon page 19.

Steady Enhancement of Shareholder Returns
through Dividends and Treasury Stock Acquisitions

income growth. At the same time, we revised the accounting policies for sales in Retailing and Store Operation,
introducing “revenue” as a line item to replace the previously used “total operating revenues.” These changes will
be applied to performance forecasts and reports for the
fiscal year ending March 31, 2016, and onward*2.

We hope that our shareholders will maintain their holdings over the long term, and we are therefore working to*2 For details, please refer to Introduction of New Management Indicator—
Total Group Transactions on page 19.

steadily enhance long-term shareholder returns throughstable and continuous dividend payments combinedwith aggressive treasury stock acquisitions.

Structurally, the Retailing and Store Operation business accounts for the majority of the Company’s sales.

Since the fiscal year ended March 31, 2013, we have

As we shift toward shopping center style stores underbeen increasing dividends in conjunction with perfor-

the new business model, our source of earnings will

mance recovery, targeting a payout ratio of 30% or more.

change from product sales to rent revenues, resulting

In the fiscal year ended March 31, 2015, cash dividends

in a decline in overall recorded sales. At the same time,

per share were ¥19, up ¥1 year on year, making for athough, this transition is driving profitability improve-

payout ratio of 32%.

ments in the Retailing and Store Operation business andearnings growth in Credit Card Services, resulting in an

Shareholder Returns and Payout Ratio

upward trend in gross profit and operating income. This

FY2013

FY2014FY2015FY2016(forecast)

Cash dividends
per share

¥15

¥18

¥19

¥22

the previously used top-line indicator, “total operating

Payout ratio

31%

32%

32%

32%

revenues,” and income figures.

Total return ratio

31%

32%

125%

146%

We are also conducting treasury stock acquisitions.
In accordance with the aforementioned policy, a total of
10.7 million shares were bought back using ¥15.0 billion.
Leading up to March 2017, we plan to conduct a series

situation has caused inconsistency between trends in

We anticipate that the newly introduced “total
Group transactions” will prove to be a highly viableindicator that accurately reflects management performance and progress under the new medium-term­management plan.

of acquisitions to repurchase another ¥35.0 billion
worth of stock in total. Furthermore, 40 million sharesof treasury stock, equivalent to 12.55% of total sharesissued, were canceled in March 2015.
26

August 2015

Messages from the External Directors

MARUI GROUP Is Not Attempting
to Duplicate the Successes of the Past
but Is Rather Forging a New Path throughBold Innovation.

Koichiro Horiuchi
External Director
President and Representative Director, FUJI KYUKO CO., LTD.

S

ince being appointed to the position of

from accumulating physical goods, represent

external director at MARUI GROUP, I have

major management issues needing to becontinued to actively provide management withaddressed. However, even in tackling thesesuggestions and advice, all while maintaining an

issues, MARUI GROUP is not attempting tooutside perspective. The role of an external­duplicate the successes of the past but is rather

director is generally to prevent management fromforging a new path through bold innovation.

falling into a sense of complacency and to exer-

Management’s current stance can be seen in thecise a restraint function to stop management fromtransformation of the retailing business model, thebecoming overly inward looking or acting contrary

opening of the Group’s first store in Kyushu, andto social norms. However, in the case of MARUI

the rapid development of EPOS CARD operations.

GROUP, I do not feel this is an issue, as its corpo-

In the fiscal year ending March 31, 2016,

rate governance system is functioning soundly.

MARUI GROUP’s corporate governance system

MARUI GROUP’s strength lies in the fact thatwill enter into a new stage. Accordingly, I will

the Group always pursues innovation, taking

reaffirm my own responsibility so that I may live

appropriate risks while adapting to the changing

up to the expectations of the Company’s share-times. The Group has built its operating founda-

holders and other investors by contributing totions on top of a business model that merges

improved corporate value.

retailing and credit cards. Accordingly, recent
operating environment trends, such as the aging
population, declining birthrate, and departure

August 201527

I

believe that my duty as an external director

development of people with the development

is to provide suggestions on how MARUIof the Company contained in MARUI GROUP’s

GROUP can achieve sustainable growth andcorporate philosophy. Looking at its organiza-

realize medium-to-long-term improvements intion, MARUI GROUP respects the diversity of its

corporate value. In the past, I have supported

human resources, and it is implementing numer-

corporate transformations at numerous compa-

ous measures to create an air of dynamism innies as a management advisor. Calling upon thisthe organization, including assigning employees

expertise, I aim to support MARUI GROUP’s

to new professions. These efforts will no doubt

management to ensure that the Company

drive a steady increase in the Group’s corpo-

continues to grow steadily. Furthermore, I haverate value. I am completely onboard with thisspecialties in cultivating managerial candidates

approach, and I want to support managementand developing organizations, and I therefore

in building upon these efforts in the future.

hope to help create an environment that facili-

In regard to the Board of Directors, I feeltates that growth of employees from a manage-

that meetings need to go beyond simply

ment perspective.

approving and deciding on important manage-

From my viewpoint, the strength of MARUI

ment matters. Meetings of the Board of

GROUP comes from its organization, which

Directors should serve as forums for free andcapitalizes on the innovative minds of its

constructive discussion of management issues­management and the diversity of its humanand directives. In my capacity as an external

resources. Over the past several years, thedirector, I will strive to serve as a catalyst for

Company has been transforming the businessupbeat discussions and thereby make further

model for its Retailing and Store Operation

contributions to improved corporate value.

business. These efforts have been driven by acorporate culture that fears neither failure norchange, based on the sentiment of equating theAugust 2015MARUI GROUP’s Respect for the Diversityof Human Resources and Numerous Measures
Implemented to Promote Dynamism in
the Organizations Will No Doubt Increase
the Group’s Corporate Value.

Etsuko Okajima
External Director
Representative and CEO, ProNova Inc.

28

29

Numbers

84

40

years

years

Time passed since theYears since

Loss of the Founder in 1975MARUI got its start in selling furniture on
monthly installment plans in the Nakano area of Tokyo.
It only had two employees at launch.

In 2015, 70 years after the end of World War II and
40 years since the passing of founder Chuji Aoi,
a novel was release chronicling his legend.
Yuzuru Demachi, Keiki wo Shikaketa Otoko(The Man Who Built the Economy), GENTOSHA INC., 2015MARUI’s Founding in 1931

100.0

¥

million299.3¥

billionIn the fiscal year ended March 31, 2015, record-breaking

Daily Sales Figure

Credit Card Receivables

In December 1962, daily sales reached ¥100.0 million
for the first time since MARUI opened its doors in 1931.
Full-year sales in 1962 totaled about ¥7.2 billion.

*1 Revolving repayment and payment by installments + cash advancetransactions (excluding lump-sum payments)

achieved during the year-end sales rush in 1962

7

years

Time required to recoverMarket Capitalization to¥500.0 billion
Market capitalization recovered to ¥500.0 billion in June 2015,
signaling the end of our seven year struggle to overcome
the crisis of the introduction of the Money Lending Business
Act revision.

30*1

EPOS CARD interest-bearing receivables reached a record high due
to growth in card shopping transactions and ceased decline in cash
advance transactions.

Close-Out Sales

5.0¥

million

Close-Out Sales Amountprior to temporary closure during World War II

Five stores were closed temporarily due to the war-timecommercial activity restrictions instated in 1941.
Close-out sales were conducted in June and July 1941.

Co-Creation Business
MARUI GROUP’s co-creation business merges retailing and credit card
operations to provide joy to customers seeking more-fulfilling lifestyles.

* The image in the center of the collage above is an artist’s rendition of the completed KITTE HAKATA,
where Hakata Marui will be located, provided by Japan Post Co., Ltd.

31

History of Innovationand Evolution

Prevalent Needs of the Era

Since MARUI founder Chuji Aoi opened his first store in 1931, the Group has continued

Durable Goods

to pursue innovation to respond to changing customer needs, and it is still growing
through its Retailing and Store Operation business as well as its Credit Card Services andRetailing-Related Services businesses. The founder’s pioneer spirit of creating opportunities has been the driving force behind the management stance that constantly propels us
toward innovation. Still alive in all MARUI GROUP companies today, this spirit continues todrive us to new stages of growth.

1969

Aired TV commercial portraying
community-rooted nature of
Marui stores nearby train stations

Prevalent Needs of the Era

Furniture & Clothing
1972

1960

Issued first credit card in Japan

Created Marui Credit Members
system; Began issuing new
credit cards

1947

Rebuilt flagship Nakano Marui
where former store stood
before World War II

1931

Chuji Aoi opened first independent store in Nakano area of Tokyo,
after separating from
Maruni Shokai Co., Ltd.

Posted flyers advertising
resumption of monthly
installment plan sales
1940

Opened New Shinjuku Marui(currently Shinjuku Marui Main
Building); Commenced full-fledged
development of large-scale storesin Tokyo metropolitan area

Opened Shinjuku Marui(currently Shinjuku
Marui East Exit Building),
industry’s thenlargest store

1950

1931

1974

1962

1950

1960

1970

Accumulation of physical goods
Modernization of installment payment system
Founder: Chuji Aoi
Period as president: 1931–1972

Evolution from monthly
installments to credit

Introduction ofand­development of large-scale stores

Rapid growth by equating
MARUI with youth

Founder Chuji Aoi established his first independent
store in front of Nakano Station in Tokyo at age 26.
During World War II, he was forced to close five ofthe then numerous stores he operated, but after the
war was over he reopened a temporary store in
Nakano in 1946. Chuji Aoi pushed forward with themodernization of the installment payment system,changing the name of the monthly installment
system to “credit” in 1960 and then introducing
the industry’s first computer in 1966.

Tadao Aoi became president in 1972 and quickly
launched a new corporate branding campaign using
in 1973. He then proceeded to open largescale stores in the Tokyo metropolitan area, such as
New Shinjuku Marui in 1974. All stores developed at
this time were opened, subsequently contributing
to the rapid expansion of the Company in 1977.

We began offering cash advances, a type of smallamount consumer loan, in 1981, giving rise to ourbusiness model of providing both products andservices. In the mid-1980s, while establishing newlarge-scale stores and expanding existing stores,
we also achieved rapid growth by utilizing our highly
refined fashion items to lead to Marui stores being
equated with youth.

32

Prevalent Needs of the Era

Lifestyles

Prevalent Needs of the Era

Fashion

4897

GOOD
THRU
有効期限

MONTH / YEAR

2006

Began on-the-spot, in-store issuance of multipurpose EPOS cards
equipped with IC chips, world first
1983

Issued Japan’s first magnetic card
compliant with international standards

Total Operating Revenues
Billions of yen

800

700

1987

2013

Aired TV commercial advertising
MARUI’s trendiness

Began issuing credit cards using
tablets at all stores

1985

600

Opened Ueno Store (currently
Ueno Marui), first store withfood sales floor

500

400

300

200

1980

1990

2007

2013

Opened Yurakucho Marui;Started developing stores basedon customer perspectives

Aired TV commercial promoting
Rakuchin series’ appeal to maturecustomer groups

100

2000

2010

0

2015

Pursuit of more-fulfilling lifestyles
Establishment of business models
2nd leader: Tadao Aoi
Period as president: 1972–2005

Development of business models
and enhancement of network
A 30-year streak of increased sales and income wasachieved in 1990, and we soon began developing
new business models, such as seen in the in The
Room interior accessory store and the FIELD sports
store. Then, in 1998, we enhanced our network
further by changing the names of our five main
fashion-oriented stores in the Tokyo metropolitan
area to Marui City.

Business model transformation
3rd leader: Hiroshi Aoi
Period as president: from 2005

New era for MARUI GROUP

Provision of fulfilling lifestyles

In 2000, we launched the new Akai Card, which was
equipped with revolving payment system functionality for cashing services. It was also at this time that
we implemented a new growth strategy of developing family-oriented stores, such as Marui Family Shiki
as well as Marui Family Ebina, which was our first
store located in a suburban shopping center.

Hiroshi Aoi became president in 2005. Previously
focused on youth fashion, Marui stores were refined
to offering lifestyle support in order to appeal tocustomers of all ages. New stores, including Namba
Marui, Yurakucho Marui, and Kyoto Marui, wereopened, and the Akai Card was replaced by the
EPOS CARD, which supported all areas of customer
lifestyles.

33

Transformation into a
Lifestyle Co-Creation Company
Going forward, MARUI GROUP will need to pursue further innovation and evolution driven by its unique corporate DNA,
which was forged through the merger of retailing and credit cards continually since its founding. In this manner, we will
strive to provide joy to customers seeking more-fulfilling lifestyles through our unique stores and services.

Corporate DNA Merging Retailing and Credit Cards     
MARUI GROUP is not purely a retailer nor a credit cardcompany. Its distinctively unique business model is built
by merging retailing and credit cards, realizing intrinsic

Vision for Co-Creation Management Merging
Retailing and Credit Cards
Retailing × Credit Cards 3.0
Business model transformation
Shift to shopping center style storesand ­evolution of EPOS cards

links between these two areas of operation. That has
been a characteristic of our business since our earlydays of selling furniture mainly through installment payon in the Company today.
Offering installment payment plans was an area that
required mutual trust. MARUI needed to trust its customers as it paid money in advance on their behalf, andits customers had to trust the quality of MARUI’s products to purchase them. This trust is also imprinted in our
corporate DNA, which has inspired us to pursue innova-

Customer Happinessments, and this unique corporate DNA continues to live
Retailing × Credit Cards 2.0
Establishment of business models
Merging of retailing and credit cards

Transformation

Retailing ×
Credit Cards 1.0
Modernization of installment payment systemtion and evolution in response to the changing times
throughout MARUI’s history. Over the course of ourdevelopment, aiding in creating the happiness of customers has always been central to our business.

Sustainable Growth for MARUI GROUP

Shift to Lifestyle Co-Creation Company     
Consumption in Japan is undergoing a paradigm shift
from the accumulation of physical goods to the pursuit of

Past

FutureYoung
×Fashion×
Akai Card(In-house credit card)

All generations
×Lifestyle×
EPOS CARD(Multipurpose card)

Stores using consignment
buying system

Stores with tenants on
fixed-term rental contracts

more-fulfilling lifestyles, and customers are increasingly
looking to spend their money on making their everyday
lives more enjoyable and comfortable. This trend has
given rise to lifestyle-oriented consumption aimed
at making one’s life more satisfying and augmenting­personal happiness. Prior to this shift, MARUI GROUP
focused its business on youth and fashion. Now, however,
we are undergoing a significant transformation with thegoal of better responding to the lifestyle needs of customers of all ages. This transformation is spreading to allareas of operation, including product creation and lineups, store development, customer reception, service
offerings, and the credit cards that support each of these.

34

MARUI GROUP’s Vision for Co-Creation Management     
The following principles are central to MARUI GROUP’s quest to become a lifestyle co-creation company.
1 Customer happiness aided by merging retailing and credit cards
2 Co-creation of this happiness through our links with customers and other partners
3 Introduction of joy into customers’ fulfilling lifestyles through the union of retailing and credit cards

MARUI GROUP’s vision for co-creation management lies at the intersection of these points.

EPOS cards suited tocustomer lifestyles

Shareholders
Marui stores that
respond tolifestyle needs

Collaboration cards
that support businessat partner facilities

Customers

Customer Happiness
Aided by Merging
Retailing and Credit Cards

Employees

1 Customer happiness at

the core of co-creation

Business
partners
Modi storesdeveloped basedon regional
characteristics

Bringing joy to customers and aidingin their realization of true happinesshas always been central to our uniquebusiness model, which merges
retailing and credit cards, forming
intrinsic links between them.

2 Co-creation of happinesswith partners

Not only customers but also business
partners, collaboration partners, andemployees are seen as importantpartners in the process of co-creating
customer happiness. This is MARUIGROUP’s vision for co-creation
management.

Collaboration
partners
Rakuchin Kirei
Pumps footwear
items that seek torealize unrivaled
comfort3 Introduction of joy

into customers’ lifestyles

We aim to realize a business in which
we co-create fulfilling lifestyles. For
this reason, all Group management
resources are being utilized to shift
our orientation toward lifestylesupport in product creation, store
development, credit cards, and allother areas of operation.

35

Transformation

New Credit Card Business
The first wave of transformation for MARUI GROUP in its pursuit of co-creation management
took the form of innovation in the Credit Card Services business. Aiming to further expand therange of areas in which we can contribute to customer happiness, we undertook a drastic overhaul of our credit cards, moving away from cards that were mainly limited to use in Marui stores.
This overhaul led to the creation of EPOS cards, multipurpose cards that could be used both
inside and outside Marui stores and even outside the Company’s operations, a change that­substantially increased customer convenience.

Credit Cards That Offer Greater Joy to Customers     
In March 2006, we introduced the EPOS CARD toreplace our previous Akai Card with the aim of better

Transformation of MARUI’s Credit Cards

responding to customer lifestyle needs.

Multipurpose
EPOS CARD

The main difference between these two cards wasthat, while the Akai Card was primarily a tool for suppurpose card whose functionality exceeded the scopeof Marui stores. This move transformed our credit cards
to enable them to provide the type of support MARUI
envisioned—support for all lifestyle areas, including
fashion, food, living, entertainment, learning, health, andbeauty. These cards continue to evolve today.

Customer Happinessporting Marui stores, the new EPOS CARD was a multi-

Transformation

On-the-spot, in-store
issuance of Visa cards
Collaboration cards
More benefit providers

MARUI-only
Akai Card

Strengths of EPOS Cards     
In the fiscal year ended March 31, 2015, nine years after

Sustainable Growth for MARUI GROUP

the launch of EPOS cards, total cardholder numbers hadrisen to nearly 6 million and total card transactions
exceeded ¥1 trillion. This impressive growth can be
attributed to a number of strengths. One such strengthis our human resources, who are able to call upon theirretailing experience and expertise to approach customers
from a unique perspective. Another is MARUI GROUP’s
organizational capacities, particularly the Group’s structures for quick development of information systems.

EPOS CARD Transactions and Cardholders
Billions of yen

Thousands of people

1,200

6,000

900

4,500

600

3,000

300

1,500

The Company’s highly original credit card framework isalso a strength contributing to the development of EPOS
cards. We are able to provide on-the-spot, in-store
issuance of the world’s first IC-chip-equipped Visa
cards, and standard cards can be upgraded to Goldcards at stores as well. Another part of this framework is
our collaboration cards, which provide cardholders withaccess to the benefits of all collaboration partners.

36

0 2007

2008

2009

2010

2011

2012

2013

Cash advance transactions
Marui stores
Total transactions outside Marui stores
Cardholders

2014

2015

0

EPOS CARD Network for Co-Creating Lifestyles     
Characteristics of EPOS cards include the fact that each customer is only allowed to carry one card and that this one
card grants access to the benefits of all collaboration card partners. Another characteristic is our network, which facilitates smooth mutual referral of customers between collaboration card partners. In the future, we aim to expand therange of collaboration partners to enhance and reinforce our network.

FashionCustomers

BeautyBenefits

Food
Benefits

Credit card that responds tocustomer lifestyle needs andassists businesses ofcollaboration partners
HealthLivingLearning

Entertainment

EPOS Model for Improving Commercial Facility Profitability
EPOS cards

Tenants

Developers
EPOS cards
More cardholders

Card application center
opened as tenant
Increased sales byleveraging cards
Explanations of card
convenience provided byretail professionals

Higher overallprofitability forwhole facility

Tenants
Increased sales andrepeat customers
Developers
Higher profits

Win-win for all parties37

Transformation

New Store Brand
The second transformation MARUI GROUP is undergoing on its quest to become a lifestyleco-creation company is the transition toward a business model centered on shopping centerstyle stores that provide responses to lifestyle needs. This new model represents a departurefrom its previous business model involving stores that employ the consignment buying system.
Calling upon the expertise gained through the operation of three Modi shopping centers, weplan to convert all Marui stores to shopping center style stores by 2018.
(excluding some stores for which owner approval could not be acquired)Store Development Methods That
Contribute to Customer Joy     
MARUI GROUP is transforming its business model tomove away from a store format focused on youth andTransformation of Store Development Methods

fashion in which it previously specialized in to adopt a

Future store model

new shopping center style store format that offers lifestyle support for all age groups.

buying system to fixed-term rental contracts, the systemcommonly used by shopping centers. In addition, we arerevising previously apparel-heavy product mixes toincrease the amount of sales floor devoted to restaurants and sundry items, both of which are in high demand

Customer HappinessThis transformation entails changing the method ofcontracting tenant sales floors from the consignment

Transformation

Fashion, food, living,and other lifestyle items
Customers of all ages

Previous store model

among customers. Through this type of transformation,
we will work to increase visitor numbers and purchasenumbers and thereby improve earnings.

Fashion items
Young customers

Sustainable Growth for MARUI GROUP

Format Transformation at All Stores
Previous model (consignment buying system)

Current model (fixed-term rental contracts)

Fashion oriented

Lifestyle oriented

Marui store

Contracted tenants

Marui store

Marui specialty stores

Commercial facilities / developers

Rental space

Rent revenues

Tenant sales floor
Contracted tenants

38

Marui specialty stores

Two Store Brands Supporting Future Growth Strategies     
MARUI GROUP has two store brands: Marui, whose stores display the highly recognized

and are primarily locatedin highly populated areas, and Modi, whose stores are operated by Group company AIM CREATE CO., LTD., in a flexible
manner based on their location and building features. By leveraging these two store brands, we are accelerating thecontinued nationwide development of our operations.

Marui

Modi

Marui stores located inhighly populated areas

Modi stores operated flexibly basedon their location andbuilding features
解像度不足

*1

*1 Artist’s rendition of completed KITTE HAKATA, where Hakata Marui will be located, provided by Japan Post Co., Ltd.
Highlypopulated areas

Sparsely
populated areas

39

Transformation

Creation of New Private Brands
The third transformation for MARUI GROUP to become a lifestyle co-creation company pertains
to the creation of private brands. In order to respond to the lifestyle needs of customers, wehave been soliciting customer feedback in planning, manufacturing, sales, and all other productcreation-to-sales stages. This feedback is utilized to advance a concerted Group effort to cocreate products and sales floors.

Development of Shoes That Bring Joy to Customers

Coordination as a United MARUI GROUP to Co-Create Value     The core concept of MARUI GROUP’s product creation

Coordination among Group companies

activities entails maintaining an understanding of customers, society, and the lifestyle market and of contem-

Customer-First Mentality / Product Creation

porary social values. Based on this understanding, we
uncover latent needs that customers are unconsciously
foregoing and then develop new value by responding toCustomer input
Product creation based on input from 2,000 customers

these needs. Particular progress has been made throughthis approach with regard to the women’s footwear
product Rakuchin Kirei Pumps. In addition to ensuringthat these items are comfortable, fashionable, and reasonably priced, we have also expanded the range ofsizes available to include 20.5 cm, 26.0 cm, and other

Planning meetingwith customers

Shoes LABO Plus
community website

Foot data collection

uncommon sizes for which shoes are often difficult tofind. These measures are lending speed to the sustainable growth of the Company. Rakuchin Kirei Pumps are
an example of how we are realigning our product creation mindset from a retail focus to a lifestyle support
focus to work together with customers in order to co-

Original shoe tree

create shoes that bring joy to all wearers.

Foot measurement events

Product development

Transformation of Private Brands

Customer Happiness

Future private
brand products

Customer round-tablediscussion

Customers of all ages

Transformation
Previous private brandproducts

Comfortable
Fashionable with broad
size range
Reasonably priced

Focused on young
customers
Fashionable
Limited size range

Sustainable Growth for MARUI GROUP

40

Birth of Rakuchin Kirei Pumps
Launched in 2010

Customer test group

Environmental andsocial contribution
activities
CO2
emissions

Carbon footprint

to place Rakuchin Kirei Pumps into the hands of customers
Sales Floor Development /Distribution

Sales floor designand construction

Sales Promotion / Operation

Convenient Shopping

Sales promotions

EPOS cards

AIM CREATE CO., LTD.

Savings from shoppingwith credit cards

AIM CREATE CO., LTD.

4897

Stock planning
MOVING CO., LTD.

Store facility supply,
security, andjanitorial services

GOOD
THRU
有効期限

MONTH / YEAR

Internet sales

MARUI FACILITIES Co., Ltd.

More than 2 million pairsof Rakuchin Kirei Pumps
sold to date

Initiatives
outside MARUITransportation to
Marui stores

Sales outside
Marui stores

MOVING CO., LTD.

Reuse & Reduce
Additionaldelivery systems
Delivery toindividual shops

MOVING CO., LTD.
M & C SYSTEMS CO., LTD.

MARUI buys back shoes that
customers can no longer wear,
determines the issue, and utilizes
this knowledge when developing
future products.

MOVING CO., LTD.

System support

M & C SYSTEMS CO., LTD.

41

42

Feature

Transactions Exceed ¥1 Trillion:
EPOS Cards     

FeatureNationwide Expansion:
Two-Pronged Strategy
Utilizing Marui and Modi     

CO-CREATIONOF VALUE
FeatureFirst Kyushu Location:
Hakata Marui     FeatureQuest for Unrivaled Comfort:
Rakuchin Kirei Pumps     * The image for Feature 03 is an artist’s rendition of the completed KITTE HAKATA,
where Hakata Marui will be located, provided by Japan Post Co., Ltd.

43

Feature

Transactions Exceed ¥1 Trillion:
EPOS Cards
The operations of Epos Card Co., Ltd., are growing rapidly, supported by the uniqueservices and value provided based on the Group’s retail experience. The EPOS CARD has
now entered into the next growth stage: nationwide development.

In the fiscal year ended March 31, 2015, total card

Looking ahead, we aim to achieve total cardtransactions for EPOS cards exceeded ¥1 trillion.

transactions of ¥2 trillion coupled with a total numberThis feat was accomplished a mere nine years sinceof cardholders of 8 million in 2019. To accomplish

the 2006 launch of EPOS cards, over which thethese objectives, we are pushing forward with a strat-

number of cardholders has risen to nearly 6 million.

egy of expanding cardholder acquisition efforts

Transaction growth has been particularly impressive

outside the Tokyo metropolitan area and Kansai

over the past four years, increasing by more thanregion to encompass all of Japan. Going forward,¥100.0 billion each year, demonstrating the acceler-we will continue driving the evolution of EPOS cards

ated growth of the EPOS CARD.

to offer increased convenience to cardholders.

44Toshikazu Takimoto

Kazuhiko Okamoto

Managing Executive Officer
President and Representative Director, Epos Card Co., Ltd.

Chairman and Director
Visa Worldwide Japan Co., Ltd.

Multifaceted Evolution to
Become Customers’ Main Card

Brand Value Improvement and Business Growth
Driven by Committed Customer Engagement

The EPOS CARD was founded on the knowledge

Epos Card is at the global forefront of credit card

MARUI GROUP had accumulated with regard to on-

innovation, offering on-the-spot, in-store issuance ofthe-spot, in-store card issuance and credit systems.

IC-chip-equipped Visa cards. Moreover, these cards

The next step in the evolution of our previous cards,

are one of the fastest growing cards among all of ourwhich were limited to use primarily in Marui stores,

affiliates. As a testament to that, Epos Card is collabo-

EPOS cards are multipurpose credit cards usable

rating with various commercial facilities, the rate at

outside MARUI. EPOS cards have undergone a multi-

which its cards are used outside Marui stores is rising,

faceted evolution over the years, an evolution madeand the number of cardholders in regions where there

possible by the fact that Group company M & C

are no Marui stores is increasing. Visa-affiliated EPOSSYSTEMS is responsible for developing all of our IT

cards have won the hearts of customers through ansystems. The capabilities refined by M & C SYSTEMS

appeal that is not found in other cards, an appeal nocreating more than 100 systems each year havedoubt arising from MARUI’s retailing expertise. MARUI

enabled us to implement numerous measures, includ-

GROUP has been developing its unique Credit Carding developing systems for converting standard cards

Services business since 1960, when it launched its

to Gold cards in stores, offering collaboration cards,

own proprietary card. The corporate DNA formed

processing card applications with tablets, providing

through this business has subsequently been inherited

rent payment guarantees, and developing smartphoneby the employees of today, who are committed toapplications. I believe it is these measures that havecustomer engagement, a major factor increasing theenabled us to realize such impressive growth in card-

value of EPOS cards. I feel that this engagement is theholder numbers. In the future, we will work to expand

primary reason behind the EPOS CARD’s impressive

our network of collaboration partners while enhancing

growth in cardholder numbers, usage rates, and card

the benefits provided therein as we strive to evolve

transactions.

EPOS cards and inspire customers to use them as
their main card.

Credit application using tablets

EPOS CARD application center, MALera GIFU

45

Feature

Nationwide Expansion:
Two-Pronged Strategy Utilizing
Marui and Modi
As it transitions to a business model focused on shopping center style stores withthe aim of becoming a lifestyle co-creation company, MARUI GROUP will develop its
Retailing and Store Operation business through a two-pronged strategy utilizing its
two store brands: Marui and Modi.

MARUI GROUP’s Retailing and Store Operation busi-

Unfettered by preconceptions, Modi stores will

ness is blazing a new path, boldly striking forward

freely depart from the traditional concept of Maruiwith two store brands: Marui and Modi. Under thestores as necessitated by location, business area

Marui brand, stores will be converted into new shop-

characteristics, store size, or other factors.

ping center style stores to better respond to cus-

Through a flexible two-pronged strategy, we will

tomer needs. Meanwhile, stores operated under thepromote the nationwide expansion of the Retailing andModi brand will be developed in a unique manner.

Store Operation business as a United MARUI GROUP.

46

Masahiro Aono

Kaoru Oyamada

Executive Officer
Managing Director and General Manager,
Store Business Promotion Department, MARUI CO., LTD.

Managing Director and General Manager, Commercial Facility
and Advertisement Planning Department, AIM CREATE CO., LTD.

Evolution by Addressing Issues Uncovered
during Shift to Shopping Center Style Stores

Strength in Flexible and Unique Store
Development Based on Regional Characteristics

In spring 2014, Machida Marui became the first Marui

Modi stores differ from Marui stores, which are pri-store to undergo conversion to a shopping center

marily deployed in large-scale cities, in that they arestyle store, during which the amount of floor spacedeveloped flexibly based on regional characteristics,

devoted to lifestyle items was upped from 40% tosometimes being established in relatively small pre-70%. As a result, purchase numbers rose 2.6 times,

fectural cities. Utilizing this approach, we converted

new cardholders increased, and the store’s customer

the Marui stores in Machida, Totsuka, and Kawagoe,base grew. Unfortunately, it also became apparent

all stores that had been persistently recording losses,

that, as this was our first shopping center style store,

into Modi stores, successfully enabling them to achieve

we lacked some of the necessary know-how. For thisprofitability. Each of these three Modi stores is now

reason, the store’s earnings were less than expected.

being developed based on the characteristics of its

When converting other stores, such as Marui City

specific location, with Machida Modi focusing on life-

Yokohama and Kichijoji Marui, we took steps tostyle support; Totsuka Modi serving as a community-

address the issues that this experience uncovered,rooted, daily-usage store; and Kawagoe Modi

resulting in improved performance at almost all store

functioning as a collection of specialty stores. In thesegments that are now operating under the shopping

future, Modi stores will be opened in a wide range ofcenter style model. Going forward, we will continue toareas that encompasses prefectural and outlying cities

work together as a United MARUI GROUP in advancing

to create opportunities for furthering MARUI GROUP’s

the development of both Marui stores and Modi

nationwide expansion. Our most recent endeavor isstores, which will be operated by AIM CREATE in a

Shibuya Modi, which is scheduled to open in fall 2015.

flexible manner based on location and scale.

We aim to make this store into a true symbol of the newlifestyles and culture being born in Tokyo.

Machida Marui, reborn as first shopping center style
Marui store in May 2014

Shibuya Marui, after April 2015
reopening

Shibuya Modi, scheduled toopen in fall 201547

* Artist’s rendition of completed KITTE HAKATA, where Hakata Marui will be located, provided by Japan Post Co., Ltd.

FeatureFirst Kyushu Location:
Hakata Marui
Spring 2016 will mark the long-awaited opening of Hakata Marui, our first store in Kyushu.
This store is anticipated to serve as a model to be used in creating future shopping
center style Marui stores.

Hakata Marui will be located in Fukuoka City, Kyushu’s

accordingly. Moreover, we aim to grow this store

largest city with a population of 1.5 million, and will

together with the local community, incorporating

stand in front of JR Hakata Station, a prime location

the opinions of numerous local customers during thisin the center of the city. Not only will this be our firstprocess. Hakata Marui will be the first new Marui store

store in Kyushu, but Hakata Marui is also anticipated toopened in five years, and we are committed to making

serve as a model to be used in creating future shop-

this store a symbol of the Group’s stance toward

ping center style stores, and the Group is mustering

ambitiously tackling new challenges going forward.

its collective strength in developing this store

48

Planning meeting with customers

Jun Nishino
General Manager, Hakata Store Development Office, MARUI CO., LTD.

Unique Store Development Venture Transmitting
Appeal of Kyushu and Hakata
Hakata Marui will be a core tenant in the commercial
facility being constructed in front of JR Hakata Station
by Japan Post Co., Ltd. This building is positioned in
an area with more than 4 million potential customers
residing within a one-hour radius, and it is also anticipated to play a role in welcoming the more than
2 million overseas travelers that visit Kyushu each year.
We want the residents of Fukuoka City to view
Hakata Marui as truly belonging to their city. For thisreason, we have been incorporating customer input

Hakata Marui community website (Japanese only)
hakata-fan.0101.co.jp/

into the store development process for some time.
We have held over 200 meetings, with the cumulative
total participation number reaching nearly 1,600.
At these meetings, we discuss store development
concepts, floor designs, tenants, store atmosphere,
and other aspects of Hakata Marui. Furthermore, we
opened a community website as a venue for customers that are unable to attend meetings to submit theirsuggestions. By building upon this customer input,
we will endeavor to develop Hakata Marui into a store
unique to its region, one that transmits the appeal of
Kyushu and Hakata.

Jiro Ishioka
Customer Needs Manager,
Hakata Store Development Office,
MARUI CO., LTD.

Customer Planning Meetings—
Forums for Frank Exchanges of Opinion
A wide variety of customers, ranging from those in their
20s to those in their 60s, have been participating in Hakata
Marui planning meetings. In these meetings, we discussvarious aspects of store development with customers,
including floor concepts and interior design. These forums
tend to have a serious air about them as customers
exchange their frank opinions with regard to their ideal
store. Furthermore, as the lifestyles of customers differ by
age and gender, it is sometimes difficult to reach a consensus. After compiling the diverse opinions of customers,
they are then sent to the relevant departments, and theCompany’s decision is announced at the next meeting.

KITTE HAKATA of Japan Post Co., Ltd., future home to Hakata
Marui, under construction (May 2015)
The building to the left is the JR HAKATA CITY shopping mall.

Seeing customers rejoice at these announcements reallyhits home the fact that we are developing this store
together, empowering me in my work.

49

Rakuchin Kirei Pumps is a central product in MARUIfrom customers with the aim of creating their ideal

GROUP’s private brand strategies. These women’sshoe, and this commitment was integral to the suc-shoes were developed through an extensive produc-cess of Rakuchin Kirei Pumps. As the consumer

tion creation campaign that entailed collecting infor-

market grows more mature, buyers are less willing

mation on customer desires and complaints. The end

to accept products and services that companies

result was an overwhelming hit, selling more than 2

attempt to impose on them without concern for theirmillion pairs to date. It is fundamentally important forneeds. It is only when customers resonate with our

women’s shoes to be comfortable, fashionable, andstance toward and the process of thinking and creat-reasonably priced and to feature a wide range of sizes,

ing together that our private brand products will

and this is particularly true for pumps. Even with regard

come to have true value. This is the goal of our private

to these fundamental qualities, we incorporated input

brand strategies.

FeatureQuest for Unrivaled Comfort:
Rakuchin Kirei Pumps
Rakuchin Kirei Pumps are the embodiment of our desire to co-create private brandproducts that have true value together with customers.

50

Hajime Sasaki

Mayuki Igayama

Senior Executive Officer
In charge of Retailing and Store Operation Business
Senior Managing Director and General Manager,
Shoes Business Department, MARUI CO., LTD.

Executive Officer
Director and General Manager,
Direct Marketing Department, MARUI CO., LTD.

Production Creation Aimed atBringing Customers Joy

Establishment of MARUI Fans across Japan throughInternet Sales Site Co-Created with Customers

The development of pumps for the Rakuchin series

Customers are increasingly turning to the Internet for

can be traced back seven years ago. It was then that

their shopping needs, and shoes have been sellinga customer opinion survey returned with around 90%

well on our Internet sales site. Aiming to offer custom-of women stating that they had felt discomfort withers an even-more enjoyable online shoe shopping

pumps in the past. We later asked customers what

experience, we have continually gathered information

they wanted from private brand products developedon customer needs through discussion forums andin the future, and the response showed that customers

surveys. Based on this feedback, we renewed ourdesired products that were comfortable, fashionable,

Internet sales site and introduced various services,and reasonably priced. Realizing that the product oursuch as free shipping and returns. Moreover, wecustomers sought did not actually exist, we set about

launched promotional campaigns to solicit our flag-

creating this product. This decision was the genesis ofship product—Rakuchin Kirei Pumps—and communi-

the product creation meetings conducted together

cate its product creation approach to customers inwith customers that had felt dissatisfaction with

regions without Marui stores. We also established theregard to the comfort of pumps that were on the

Shoes LABO Plus community website to allow any

market at that time. The process that followed

customer in Japan with an interest in shoes to easily

entailed quantifying customer needs, repeatedly

take part in the product creation process via thecreating samples through collaboration with the cus-

Internet. Our attempts to enhance product lineups

tomers that shared our vision, and then reworking

will continue into the future. At the same time, we willthese samples after examining them together. It was

create systems to make our Internet sites more con-through this steadfast and ongoing effort that we werevenient to use in order to ensure smooth shopping. In

able to create the hit Rakuchin Kirei Pumps and realize

this manner, we will pursue co-creation at all contact

sales of more than 2 million pairs. With this productpoints with customers to establish fans of MARUI and

creation approach, the Rakuchin series is truly a prod-of Rakuchin Kirei Pumps across Japan.

uct line aimed at creating joy with customers.

Customer test group

Samples made using original shoe trees

Shoes LABO Plus community website

51

CO-CREATION OF VALUEMARUI GROUP has continued to treasure its connections with customers, always sharing
their viewpoint and working to co-create the unique happiness they sought in each era.
The Group’s DNA of innovation was forged over a history of co-creating value andcustomer happiness together with stakeholders.

KITTE HAKATA of Japan Post Co., Ltd., future home to Hakata Marui,
under construction (May 2015)

52

53

MARUI GROUP’s Three Business Segments

A United MARUI GROUP
with Three Business Segments

Operating Revenues by Segment

MARUI GROUP’s operations comprise three business

12.9%

Retailing-Related Services

segments: Retailing and Store Operation, Credit Card
Services, and Retailing-Related Services. The Group offers

Credit Card Services

one-of-a-kind value that is distinctly different from that of

16.3%

Fiscal year ended
March 31, 2015

Retailing and StoreOperation

70.8%

competitors through its services born out of a seamless
union between these intrinsically linked businesses.
The performance of each segment is fueled by intangible intersegment synergies, meaning that no one segment
can realize its full potential alone. This cohesion has givenrise to the concept of a United MARUI GROUP, a principle

Operating Income by Segment
Retailing-Related Services

10.6%

that we will continue to cherish regardless of how times

Retailing and StoreOperation

may change. Guided by this framework, we will seek out
the ideal path for continuing to develop our business andCredit Card Services

63.8%

providing value to customers.

25.6%

Fiscal year ended
March 31, 2015

Retailing-Related Services

AIM CREATE CO., LTD.

M & C SYSTEMS CO., LTD.

Provision of services utilizing
retailing expertise and specialties

Retailing andStore Operation

Credit Card
Services

MARUI CO., LTD.

Epos Card Co., Ltd.

AIM CREATE CO., LTD.

MRI Co., Ltd.

Corporateclients

Epos Small Amount and ShortTerm Insurance Co., Ltd.
Acquisition of new insight
through transactions withexternal corporate clients

MOVING CO., LTD.

MARUI FACILITIES Co., Ltd.
MARUI HOME SERVICE Co., Ltd.
MARUI KIT CENTER CO., LTD.

54

Retailing and Store Operation
This segment is developing MARUI GROUP’s
unique retail services that integrate stores, cards,
and the Internet.
Business activities

Procurement and sales of clothing andaccessories; rental, operation, and management of commercial facilities

Operatingcompanies

MARUI CO., LTD.
AIM CREATE CO., LTD.

Number of stores
27 in Japan
Total sales floor area 444,040 m2
Transactions¥322.9 billion(total of product sales and revenue fromtenants on fixed-term rental contracts)

Operating Revenues / Operating Income
Billions of yenBillions of yen

400

20

300

15

200

10

100

5

0

2011

Operating revenues

2012

2013

2014

2015

0

Operating income

Credit Card Services
This segment is driving the overall performance of
MARUI GROUP by providing credit card services basedon a retail perspective.
Business activities

Credit card services, consumer loans,and rent payment guarantees

Operatingcompanies

Epos Card Co., Ltd.
MRI Co., Ltd.
Epos Small Amount and Short Term
Insurance Co., Ltd.

Total number ofcardholders
Transactions

5,910,000(including 1,030,000 with Platinum cards or Gold cards)¥1,234.3 billion

Operating Revenues / Operating Income
Billions of yenBillions of yen

80

40

60

30

40

20

20

10

0

2011

Operating revenues

2012

2013

2014

2015

0

Operating income(total of card shopping transactions,cash advance transactions, etc.)

Retailing-Related Services
This segment is creating new businesses together
with Retailing and Store Operation and Credit Card
Services to support these segments.
Business activities

Major operatingcompanies

Transactions

Store design, advertisement planning,apparel distribution subcontracting,
IT system services, maintenance andmanagement of buildings and otherfacilities, and real estate rental
AIM CREATE CO., LTD.
MOVING CO., LTD.
M & C SYSTEMS CO., LTD.
MARUI FACILITIES Co., Ltd.
MARUI HOME SERVICE Co., Ltd.

Operating Revenues / Operating Income
Billions of yenBillions of yen

60

6

40

4

20

2

0

2011

Operating revenues

2012

2013

2014

2015

0

Operating income¥33.8 billion

55

MARUI GROUP’s Three Business Segments

Retailing and Store Operation     Performance in the Year under Review

Business Strategies

In the fiscal year ended March 31, 2015, performance

The domestic operating environment is changing due

in the Retailing and Store Operation segment wasto the aging of the population and the declining birth-

impacted by the consumption tax rate increase and therate as well as the shift in consumer needs from thechange in earnings source from product sales to rent

accumulation of physical goods to the pursuit ofrevenues accompanying the transition to shopping

more-fulfilling lifestyles. Accordingly, the Group iscenter style stores. These factors resulted in a decline

revising its previous product lineups, which focusedin operating revenues. In addition, operating incomeon youth and fashion, and transforming its business

was down, despite efforts to reduce fixed costs.

model to better respond to the lifestyle needs ofFinancial resultsin the fiscal year ended March 31, 2015
Operating revenues¥302.7 billion (down 6.1%)

Product sales¥296.6 billion (down 6.5%)

Rent revenues and others
Operating income

Results in year
under review

Future initiatives■

forward with transformation in the three areas
described below with the aim of increasing customer
numbers and thereby improving profitability.

¥6.1 billion (up 22.4%)

By undergoing these transformations, we will¥8.1 billion (down 23.6%)

endeavor to return the Retailing and Store Operation

Transformation of Store Development Methods
Core theme

customers of all ages. Specifically, we are pushing

For more details, please refer to page 38.

The transition from department store to shopping center style store (shift from consignment buying sales
to fixed-term rental contract revenues) will be advanced.
Profitability will be improved by contracting tenants at market-price rental rates.

 erformance improved substantially at the first shopping center style store, Machida Marui, with visitor numP
bers increasing 1.3 times from the last full-year it was open and purchase numbers rising 2.6 times after opening due to the expanded customer base stemming from the strengthened sundry item and restaurant lineups.
■ Approximately 10% of the transition to fixed-term rental contracts was completed.
■■ ontinuing from the large-scale overhauls of Machida Marui, Kichijoji Marui, and Shibuya Marui, 70% ofCexisting stores are planned to be converted to a fixed-term rental contract system over the next three years
and 100% over the next five years. (excluding some stores for which owner approval could not be acquired)Transformation of Sales FloorsCore theme
Results in year
under review
Future initiatives■■

The competitiveness of directly managed sales floors will be strengthened through conversion to specialty stores.
Increased sales opportunities and improved productivity were realized on shoes sales floors at the forefront ofprivate brand development through a Groupwide project.

 anagement resources will be primarily allocated toward converting directly managed sales floors
M
into specialty stores through extensive selection and concentration measures aimed at strengthening­competitiveness and improving profitability.
■ Directly managed sales floors in Company-operated stores will target return rates of 3% or more, higher
than market-rate rental rates.
■ Preparations will be advanced for fall 2015 store opening in LaLaport TACHIKAWA-TACHIHI.
■

Transformation of Products
Core theme
Results in year
under review
Future initiatives

56

■

■

■

For more details, please refer to page 50.

 he lineup of new private brand products will be bolstered and variety will be increased with the aim ofT
introducing them into external stores.
 akuchin Kirei Pumps, women’s shoes developed based on a thorough understanding of customer needs,R
became the industry’s best seller with more than 2 million pairs sold to date.
 ales capabilities will be strengthened for Rakuchin Kirei Pumps targeting introduction into external stores, and newSprivate brand product development will be accelerated.

We are transforming our business model to better meet the diverse
lifestyle needs of a wide range of customers across all age groups.
The Retailing and Store Operation business is realizing improved profitability through transformations in terms of store development methods,
sales floors, and products. Of particular importance is the transformationof store development methods, which is being advanced based on thecore theme of transitioning our business model from department storesto shopping center style stores.
     Masao Nakamura
Director and Managing Executive Officer
Responsible for Retailing and Store Operation BusinessPresident and Representative Director, MARUI CO., LTD.

business to the growth track. Furthermore, future

Projections

growth strategies will be centered on our two store

As the shift in business model stimulates improve-brands—Marui and Modi—as we develop operations

ments in profitability, income is growing in this busi-

flexibly based on store location and size.

ness. However, this shift entails the source of earnings

The Marui brand of stores operated by MARUI

changing from product sales to rent revenues, causing

will be reinvented as a line of shopping center styleoperating revenues to decline and resulting in incon-

stores. This transition is being advanced through thesistency between trends in revenue and income.

conversion of existing stores and the opening of new

Accordingly, effective April 1, 2015, we replaced

stores. For example, Jam Shibuya was reopened as thethe previous “operating revenues” line item with the

shopping center style Shibuya Marui in April 2015. In

new “revenue” line item, which will more accurately

addition, Hakata Marui is scheduled to open in spring

display performance under the new business model2016 and is anticipated to serve as a model in develop-(for more details, please refer to page 19).

ing future shopping center style Marui stores. In thisForecasts for the financial results from Retailingmanner, preparations for the new business model are

and Store Operation in the fiscal year ending March

progressing steadily.

31, 2016, are detailed below. We expect income toModi, meanwhile, is a brand of shopping centers
operated by subsidiary AIM CREATE based on an
approach that differs from that of Marui stores. In fall2015, Marui City Shibuya will reopen as Shibuya Modi,a revolutionary new shopping center that utilizes theexpertise of various Group companies.

steadily improve in this business as we transition to
the new business model.

Financial results forecasts
for the fiscal year ending March 31, 2016
Transactions*1¥325.0 billion (up 0.7%)

Revenue*2¥141.0 billion (down 4.5%)

Product sales¥93.5 billion (down 8.5%)

Consignment sales¥39.0 billion (down 1.7%)

Rent revenues and others¥8.5 billion (up 47.0%)

Operating income¥8.5 billion (up 5.3%)*1 Total of product sales and revenue from tenants on fixed-term rental contracts*2 After change from total value display to net value display for consignment sales

Machida Marui

Women’s shoes sales floor

57

MARUI GROUP’s Three Business Segments

Credit Card Services     

Performance in the Year under Review

Business Strategies

In the fiscal year ended March 31, 2015, the Credit

The Credit Card Services business continues to prog-

Card Services business recorded increased revenues

ress toward a new growth stage, achieving feats includ-and income for the third consecutive year following a

ing the posting of total card transactions of more thanrise in cardholder numbers, higher usage amounts for¥1 trillion. Nonetheless, there are still issues for thiscard shopping transactions, and firm amounts of cash

business to address. For example, EPOS cardholders

advance transactions.

are concentrated in the Tokyo metropolitan area and

Financial resultsin the fiscal year ended March 31, 2015
¥1,234.3 billion (up 17.0%)

Transactions

there are several regions of Japan with no penetration.
Furthermore, it is essential that we create systems forenhancing the convenience of credit cards to improveupon the still low credit card usage rates in Japan.

Card shopping¥976.5 billion (up 15.9%)

Cash advance¥137.3 billion (up 7.5%)

For these reasons, we plan to accelerate the

Others¥120.4 billion (up 43.3%)

growth of the Credit Card Services business through¥68.4 billion (up 15.2%)

Financial charges earned
on installment salesa strategy of pursuing nationwide development while¥25.8 billion (up 24.7%)

advancing the measures targeting the expansion ofInterest income on
consumer loans¥21.7 billion (up 3.0%)

Affiliated merchants¥14.9 billion (up 17.2%)

Others

¥6.0 billion (up 22.1%)

Operating revenues¥20.1 billion (up 28.7%)

Operating income

cardholder numbers and the bolstering of usage rates
and amounts described in the table below.
By steadily advancing the aforementioned measures, the Credit Card Services business will continue
to function as a main proponent driving the overall
performance of MARUI GROUP. Through these efforts,

Expansion of Cardholder Numbers
Core measure 1:
Uncover new
collaboration card
partners andsupport partners’
businesses
Core measure 2:
Increase applications received via
websitesCore measure 3:
Strengthen coordination with stores

 o establish card application locations throughout Japan, efforts will be stepped up to uncoverT
new companies, facilities, fan clubs, and other potential collaboration card partners.
■ Kyushu will be positioned as a strategic region in consideration of its first store opening,
and the target of achieving cardholder numbers of 130,000 by March 31, 2016, will be pursued(80,000 as of March 31, 2015).
■

 TV commercials will be broadcast nationwide to raise recognition and promote credit card
application via the Company’s websites.
■ Applications will be promoted within the business areas of Marui stores through smartphone
applications and at stores.
■ oordination will be strengthened with Marui stores, which are the sites of 75% of new cardCissuances and conversion to Gold cards.
■ Card promotion officers will be appointed in conjunction with the shift to shopping center style
Marui stores to strengthen support systems for facilities and tenants.
■

Bolstering of Usage Rates and Amounts
Core measure 1:
Enhance usage
benefits andimprove
recognition
Core measure 2:
Utilize benefitsof on-the-spot,
in-store issuance58

 ARUI’s know-how will be utilized to enhance discounts and point systems provided to holders ofM­collaboration cards.
■ Card use will be promoted through special, limited-period cardholder benefit campaigns.
■■■

 he advantage of being able to receive a card and begin use immediately when needed will be solicited.
TSpeedy application screening will be realized using tablets.

4897

GOOD
THRU
有効期限

MONTH / YEAR

Visa-affiliated, IC-chip-equipped EPOS CARD

we will pursue the goal of consistently realizing

Projections

increases in card transactions of between ¥150.0

In the fiscal year ending March 31, 2016, the Credit

billion and ¥200.0 billion each year and thereby work

Card Services business is expected to achieve its

to achieve total card transactions of ¥2 trillion in the

fourth consecutive year of higher revenues andfiscal year ending March 31, 2020. At the same time,

income. We will work to expand card shopping trans-

we aim to increase operating income by ¥3.0 billion

actions by leveraging the retailing professionals thatto ¥4.0 billion each year.

will be cultivated during the process of transitioning toFurthermore, the upcoming holding of the 2020

shopping center style stores to increase the number

Olympic and Paralympic Games in Tokyo is creatingof collaboration card partners. At the same time, we

substantial business opportunities for the Credit Card

will steadily grow cash advance transactions by devel-

Services business. In preparation for the anticipatedoping systems to make borrowing and returning

spike in overseas travelers visiting Japan, the installa-

money more convenient. Forecasts for the financial

tion of a credit card payment infrastructure is being

results from Credit Card Services in the fiscal year

advanced on a nationwide scale. We expect thisending March 31, 2016, are detailed below.

development to stimulate a rise in credit card use for
shopping purchases. MARUI GROUP is committed totaking full advantage of this favorable operating environment to realize further growth in this business.

Five Collaboration Cards Available in Kyushu

HUIS TEN BOSCHEPOS CARD

Sasebo 5bangai
EPOS CARDKYUDENKOEPOS CARD

Financial results forecasts
for the fiscal year ending March 31, 2016
Transactions¥1,156.0 billion (up 18.4%)

Cash advance¥160.0 billion (up 16.5%)

Others¥150.0 billion (up 24.5%)

Revenue¥75.0 billion (up 9.6%)

Financial charges earned
on installment sales¥28.0 billion (up 8.4%)

Interest income on
consumer loans¥23.0 billion (up 5.9%)

Affiliated merchants¥18.0 billion (up 20.6%)

OthersOperating income

Club Hawks
EPOS CARD¥1,466.0 billion (up 18.8%)

Card shopping¥6.0 billion (up 0.4%)¥22.0 billion (up 9.3%)

JQ CARDEPOS CARD

59

MARUI GROUP’s Three Business Segments

Retailing-Related Services     

Performance in the Year under Review

to strengthen the competitiveness of existing busi-

In the fiscal year ended March 31, 2015, both rev-

nesses while simultaneously creating new businessenues and income decreased in the Retailing-Related

opportunities. When developing stores, for example,

Services business due to the absence of the large-

AIM CREATE will take charge of space production,

scale internal construction order recorded in theinternal construction, and advertising and promotions,previous fiscal year.

while MOVING will take over for handling in-store

Financial resultsin the fiscal year ended March 31, 2015
Operating revenues¥33.8 billion (down 2.5%)

Operating income¥3.3 billion (down 26.3%)

Business Strategies
The operating companies associated with the RetailingRelated Services business are advancing a basic ­strategy
with two functions. The first is to utilize their uniqueexpertise and specialized insight to form a powerfulsupport network for MARUI GROUP’s mainstay Retailingand Store Operation and Credit Card Services businesses. The second is to expand operations by providing services to corporate clients outside the Group(for more details, please refer to pages 122–125 foran overview of MARUI GROUP companies).
MARUI GROUP promotes the concept of a United

60

distribution and deliveries. MARUI FACILITIES, meanwhile, provides facility security, janitorial, and disasterprevention services.
We are aggressively expanding transactions withexternal corporate clients and other customers forthese high-value-added services, which are built on
top of MARUI GROUP’s retailing expertise.

Projections
The Retailing-Related Services business is expectedto achieve higher revenues and income in the fiscal
year ending March 31, 2016. Heightened performance
will be pursued in the future by enhancing services
provided to MARUI GROUP companies while
expanding transactions with external customers.

Financial results forecasts
for the fiscal year ending March 31, 2016MARUI GROUP by forming intrinsic links between the

Revenue¥35.0 billion (up 3.5%)

businesses of all Group companies, thereby seeking

Operating income¥3.5 billion (up 5.0%)

61

Numbers

345

45

%

Number of Employees
Changing Professions,

Ratio of Female Employees
at MARUI GROUP

including intra-Group relocation

MARUI GROUP actively encourages employees to change
professions in order to promote the diversity of individual talents
and encourage employee development. In spring 2015, 345 of theCompany’s 5,918 employees changed professions.

28

2015

2021

Number of Women in
Management Positions,Supporting the contributions of women is an area that has been
gaining attention among Japanese companies. MARUI GROUP
already has more than 2,600 female employees, who are actively
contributing to its business. Of MARUI GROUP’s 5,918 employees,
45% are female.

54%

including executive officers and directors

Ratio of Male Employees
Taking Childcare Leave

Approximately 8% of MARUI GROUP’s management positions arefilled by women. We are building a corporate culture that supports
the contributions of female employees, and we aim to raise thisratio to 17% by the fiscal year ending March 31, 2021.

MARUI GROUP encourages male employees to take part inchildrearing. We have therefore introduced a short-term childcare
leave system available to all employees.

4,676

g

Carbon Footprintof one pair of shoes

Only 4,676 g of CO2 is emitted during the entire lifespanof one pair of velikoko VI1F5-8014 Rakuchin Kirei Pumps,
from raw material procurement to recycling.

62

thanks to the understanding of colleagues

More than

860

m2

Area of Four Seasonsand Waterside Gardens,beloved attractions for local customers

These gardens form a lush and sprawling forested biotope
on the west side of Nakano Marui. In 2013, they were certified
as “Urban Oases” by the Organization for Landscape and
Urban Green Infrastructure.

Co-Creation Engagement
MARUI GROUP is cultivating a corporate culture that encourages
all employees to contribute to management with the aim ofadvancing co-creation management on a Groupwide basis.

63

Cultivation of a Co-Creation Management
Corporate Culture
MARUI GROUP is cultivating a corporate culture that unites all Group members with the aim of advancing
co-creation management on a Groupwide basis. The concept of a United MARUI GROUP that promotes cohesion
across company and organizational boundaries constitutes our shared vision for realizing this corporate culture.

Platform for Employee Participation in Management
MARUI GROUP has established the Medium-Term

term. Any Group employee is able to participate inManagement Visionary Committee, an organizationthese project teams, thereby enabling them to provide

tasked with contributing to the realization of medium-to-

a platform for employee participation in management.

long-term corporate growth and the corporate philosophy.

Furthermore, the Group has introduced a unique

The Medium-Term Management Visionary

human resources system that allows profession changes,

Committee comprises a total of five subcommittees,

which are designed to thicken the links between indi-

including the Diversity Subcommittee and the Maruividual businesses and thereby form the foundations for

Future Subcommittee. The topics discussed by thesea corporate culture that will drive the Group to newcommittees are reviewed quarterly and reports on

growth stages. Rather than pursuing the growth of thecommittee activities are submitted at the end of each

Retailing and Store Operation business or the Credit

fiscal year and shared with all Group employees.

Card Services business on an individual basis, our vision

In addition, the Medium-Term Management

is for a United MARUI GROUP that grows as one throughVisionary Committee is responsible for supporting

intrinsic links between all businesses. By working toward

official Group project teams, which discuss matters

this vision, we are broadening our efforts to stimulate theexpected to influence the development of MARUI

development of individual employees and in turn fuel

GROUP or society as a whole over the medium-to-longthe growth of the entire Group.

64Official Group Project Teams and Strategy and Other Committees for the Fiscal Year Ending March 31, 2016
Project teams in which members applying from throughout the Group discuss the future of the Group and society

Discuss matters affecting
MARUI GROUP and society
Diversity Project Team

Project Teams

Open application
membership, mainly
young employees

Marui Future Project TeamGroup Shopping Center Project Team

Support frommanagement

 roject Team for Evolving Credit Cards inPConjunction with Shift to Shopping CentersInventory Management Innovationand Evolution Project Team

Support project teams andactivities and stimulate developmentof members
Medium-Term
Management
Visionary Committee
Management

Taskforces

Organization-wide ommunication Tool
C
Improvement Project Taskforce
New Management Indicator Project Taskforce
 o-Creation Management
C
Promotion Project Team

Marui Future Subcommittee
See pages 70–71
Store Strategy Subcommittee
Credit Card Evolution Subcommittee
Store-Card-Internet Integration Subcommittee

Big Data Project Team

Address specific issues or goals

Diversity Subcommittee
See pages 66–69

Strategy
Committees
Executive
officers andmanagement

Strategy
Committees

Open application
membershipRetailing Strategy Committee
Credit Card Strategy Committee
IT Strategy Committee uman Resources Development
H
Strategy CommitteeCustomer Needs Committee 2.0
Human Resources Development Committee

Project Teams

Marui Future Project Team Official

Diversity Project Team Official

Inventory Management Innovationand Evolution Project Team Official

EPOS CARD Application Development
Project Team

Shopping Center Business Fair
Project Team65

Diversity Subcommittee 01

Profession Changes     

The promotion of diversity has been positioned as a central pillar for the strategies of the medium-term management
plan, covering the three-year period beginning with the fiscal year ended March 31, 2015, and we are therefore working to cultivate a corporate culture that contributes to high productivity and facilitates innovation. Specifically, we are
pursuing diversity from three perspectives: diversity of individual talents, gender diversity, and age diversity. For thisreason, we are actively encouraging employees to undergo intra-Group profession changes to experience the various
work fields we offer and are supporting the participation of women and young employees in making decisions.

Profession Changes That Strengthen
Customer-First Mentality
Total number of Group
employees changing
professions since the fiscal
year ended March 31, 2013

More than

1,000

Job Forums That Introduce Various Professions
Aiming to provide career support via profession
changes, the Company holds Job Forum events at which
different Group companies explain their line of work,
and it also periodically conducts individual consultation
events at which employees can discuss possible profes-

In order to accommodate diversity in individual talents,sion changes at job booths. In addition, the work of each

we have been working to increase the number ofGroup company is explained on MARUI GROUP’s

employees undergoing profession changes since April

intranet site. Through these efforts, we hope to aid

2013. The impressive contributions of employees that

employees aspiring to advance their own development

have changed professions were later announced throughby undertaking a change in profession.

the Medium-Term Management Visionary Committee
and project teams, stimulating a rise in the number ofindividuals interested in intra-Group profession changes.
In spring 2015, 345 individuals underwent such changes,
making for a total of more than 1,000, or 18% of all
employees, taking advantage of this opportunity since
the system was introduced. The number of peoplechanging professions is particularly high at sales offices,with 50% of supervisors at such locations having undergone a change.
It is common for people, after having worked in asingle profession for a number of years, to go about theirjobs without putting much thought into their practices.
However, placed in a new profession, the areas of workthat had become routine suddenly seem fresh, kindling a
new sense of inquisitiveness. One of the goals of profession changes is to allow employees to break away fromtheir sense of normalcy and escape preconceptions tobetter practice a customer-first mentality and discover
new ways of responding to customer needs. Utilizing
one’s past experience from a fresh, customer-oriented
perspective can lead to new innovations in one’s daily
work. Ongoing daily efforts can sometimes become theforce driving massive changes to our business as a whole.

66

Ai Tagami
Personnel and Skill Development Section, Personnel and Skill Development Division,
Human Resources Development and Group Distribution Department, MOVING CO., LTD.

Change to personnel division at MOVING after serving customers
on women’s purse sales floors at two stores     
I have always enjoyed customer service and helping
people, and it was this desire to be of assistance topeople that led me to MARUI GROUP when searchingfor employment. After joining the Company, I spent
three years serving customers on women’s purse sales
floors. Earning the gratitude of customers was an experience that once again made me realize the joy ofhelping people.
Today, I am responsible for personnel at MOVING,
and I am serving 800 customers who are different yet
equally valuable: our part-time workers. The desire I felt
to help customers on the sales floor remains strong as
I serve this new type of customer.

Career History 
2009
2010
2012
2012

Entered Omiya Marui
Women’s purse sales floor, Omiya Marui
Women’s purse sales floor, Marui City Shibuya
Current position

Tetsuya Hirabayashi

Kenji Watanabe

Chief Leader, Sales Promotion Section, Sales Promotion Division,
Sales Department, Epos Card Co., Ltd.

Women’s Fashion Accessory Shop Manager,
Yurakucho Marui, MARUI CO., LTD.

Transfer to Sales Promotion Section at Epos Card
after being product buyer, sales floor supervisor,and support manager overseeing entire store

From chief buyer of accessories tosales floor manager at Yurakucho Marui     

I have spent a number

I transferred to Epos Card in the hopes of being able toof years at MARUI

serve customers at the credit card application center

GROUP, where I served

based on an accurate understanding of their feelings inprimarily in buyer

order to make applications into a mere extension of an

positions, including

already enjoyable shopping experience. I aim to utilize

chief buyer for acces-

my retailing experience to ensure that as many customers

sory sales floors.

as possible leave our doors with smiles on their faces.
Career History 
1984 Entered Kamata Marui2003 Support Manager, Chief Buyer, and other corporate positions
2010 Floor Manager, Shinjuku Marui Annex
2014 Current position     

I learned a lot inthese positions, butthere were still plenty of new discoveries waiting for me
when I returned to sales floor supervision after several
years. Customers often use the news and the Internet as
timely sources of information on sales floors. Developing
sales floors in a manner that responds to the needs ofthese customers requires speed. However, the mostsatisfying part of my job is when I am able to bring customers joy by accomplishing this task.
Career History 
1993 Entered Kichijoji Marui
Women’s shoes and purse sales floor staff
2002 Chief Buyer and other corporate positions
2012 Chief Buyer, Women’s Accessory Section, Direct Marketing Division2015 Current position

67

Diversity Subcommittee 02

Contributions of Female Employees     

As of March 31, 2015, MARUI GROUP had 2,641 female employees, representing 45% of its total 5,918 employees.
Around 90% of purchases in Marui stores are made by women. However, when it comes to making decisions about thesestores, only 20% of the representatives involved are female. As female employees come to represent an increasingly
large portion of our employee base, supporting these individuals in making contributions is becoming an ever-more
important task for management.

Initiatives of the Diversity Subcommittee
Ratio offemale managers

8%

17%

Target for the fiscal year ending March 31, 2021

Traceability Using Women’s Empowerment Indexes
MARUI GROUP has defined women’s empowerment
indexes for measuring its progress in supporting the contributions of female employees. These indicators are
divided into two categories—awareness improvement

The people working at MARUI GROUP have a diverseand corporate culture cultivation as well as the promotion

range of values. However, the desire to serve customers

of women’s contributions—and we have establishedand to learn and grow is held by both the men and thetargets through to the fiscal year ending March 31, 2021.

women who join the Group. For women, however,marriage, childbirth, and other life events may impede
their ability to continue working, and there is thus an

Fiscal years ended/ending March 31

FY2014 FY2015

FY2017 FY2021(target) (target)

Awareness improvement and corporate culture cultivation

urgent need to develop new styles of working that help

Recognition of contributionsof female employees

37%

60%

100%

100%

women overcome the challenges these events may

Ratio of female employees
pursuing upper-level positions

41%*1

64%*1

60%

80%

Ratio of applicable male
employees taking childcare leave

14%

54%

60%

100%

Ratio of female employees
returning to work full-time after
taking childcare leave

36%

55%

70%

90%

Number of female leaders

545

576

650

900

Number of female managers

24

28

35

55

Ratio of female managers

7%

8%

11%

17%

present. The current state of the Group presents concern for women considering childbirth with regard to theability to balance their work with their child, and no
doubt many women feel as though they must choose
one or the other.
In the medium-term management plan launched in
the fiscal year ended March 31, 2015, the promotion ofdiversity has been positioned as a central pillar of strategies, and we are therefore pursuing diversity from threeperspectives: diversity of individual talents, gender
diversity, and age diversity. To promote gender diversity,
initiatives are being advanced centered on the Diversity
Subcommittee, which consists of members of management, and are being focused on the two areas of creating
new support systems and improving awareness. For
example, realizing that the number of women who continue to work with the Group after life events is exceptionally low, we introduced a new system that enables
such employees to work only in a fixed area and during
set times. Meanwhile, we have established a specialorganization-wide networking group as a measure to
improve awareness. Numerous employees of all genders
participate in this networking group.

Promotion of women’s contributions*1 R atio of female employees pursuing upper-level positions is based on resultsof surveys conducted in June 2014 and 2015.

Diversity Subcommittee Directives
1. Formulate working styles that will allow women to continue
working until retirement• Increase working style options available inresponse to life events• Form additional associations to support women
looking to continue working long term
2. Boost female representation in decision-making processes• Increase the number of female employees pursuing
upper-level management positions by improving awarenessand creating a welcoming atmosphere for women• Raise awareness among male employees to support thecontributions of female employees

Through these initiatives, we aim to foster the female
leaders that will become the next generation of managers and thereby improve productivity and cultivate a
corporate culture that facilitates innovation.

68

The Individuality of All Employees Is Respected
as a Form of Diversity regardless of Gender or Age.
Junko Tsuda

Kazumi Abe

Diversity Subcommittee member in the fiscal year ending March 31, 2016

Diversity Subcommittee member in the fiscal year ended March 31, 2015

Executive Officer
Director and Store Manager, Marui Family Shiki, MARUI CO., LTD.

Director and Store Management, Omiya Marui, MARUI CO., LTD.

The Group has been broadening its concept of diversity

In order for employees to be able to freely express theirsince the fiscal year ended March 31, 2015. The indi-

opinions, it is necessary for the individuals to expand

viduality of all employees is respected as a form of

their own perspective and continue growing. I believe

diversity regardless of gender or age. However, promot-that diversity is only truly promoted when all employees

ing diversity requires reforms to the corporate culture,develop their individual talents and change how theyand it is also necessary for all employees to freely

communicate with one another to reach a mutual under-

express their opinions and for a proactive stance to be

standing and work together. This process in turn contrib-

taken toward communication.

utes to increased corporate value.

In September 2014, MARUI GROUP held a workshop for mid-level female employees.
A total of 350 employees assembled at this event, which served as an opportunity forparticipants to think about how the corporate culture could better facilitate more
empowering working styles while networking with peers from throughout MARUI GROUP.
69

Marui Future Subcommittee

Contributions to Society through Business Activities     

MARUI GROUP’s vision for corporate social responsibility (CSR) entails making contributions to society through thebusiness activities of the entire Group. For example, the used clothing trade-in program started in 2010 has grownby incorporating other stores and departments of Group companies. Today, this initiative has evolved into aGroupwide activity that also involves collecting such items as shoes. Contributions made through our business of
co-creating with customers are part of the concept of Marui Future, and we are advancing activities based on thisconcept through the Marui Future Project Team and the Marui Future Subcommittee.

Apparel Recycling Program for Reusing Products
Customer clothing items andshoes traded-in to date

Approx.

4.4 million

Customers’ Shoe-Related Concerns

Results for survey of 1,112 female EPOS cardholders
Q1. How many pairs of shoes do you have?
How many of these are unworn?
A1. 28 pairs with 3 unworn on average

In Japan, less than 30% of clothing items are reused or
recycled. While there are no doubt many people hoping
to put the clothes and shoes they no longer wear togood use, it is often unclear where these items can be
Unworntaken or how they can be reused. This situation has led
more than 70% of apparel items to simply be thrownaway. With the hopes of addressing this social issue, we

Q2. What is the reason these shoes are not worn?

launched the apparel recycling program through whichA2. 

we work together with customers to contribute to theenvironment and society by reusing clothes and shoes.
The apparel recycling program began with the usedclothing trade-in program that was launched in Maruistores in 2010. This initiative allows customers to tradein clothing items they no longer need. In return, customers receive a ¥200 discount coupon for each item they(Select all that apply)
Other 18%

Do not fit or are
painful to wear

Damaged or soiled

41%

8%
Out of style 8%

Difficult to matchwith clothes

Tastes changed 11%

14%

Q3. How do you handle shoes that you no longer wear?
A3. “Throw away” selected by 92% of respondents

donated. Clothing items collected in this manner are
categorized and repaired in Group product centers.
These items are then provided to people in the Tohoku

Throw away

92%

region of Japan, which was heavily damaged by theGreat East Japan Earthquake, through special donation
shopping events or resold in Marui stores. In 2014, we
sometimes an even greater cause of concern thanReceipt of Chairperson’s Award,
Eco-Products Awards Steering Committee

clothing. Over the period from the program’s start in

The apparel recycling program allows customers tospring 2010 to March 31, 2015, approximately 4.4

trade-in clothing items and shoes, even those made by

million clothing items and shoes have been traded-inother companies, and these articles are then resold orby some 430,000 customers.

reused in stores or in the quake-stricken Tohoku region

also began accepting trade-ins of shoes, which areof Japan. This reuse-promoting initiative was recognizedat the Eco-Products 2014 exhibition when the Company
was presented with the Chairperson’s Award, EcoProducts Awards Steering Committee.

70

From Trade-Ins

To Reduction Program Designed to Eliminate Unworn Shoes

Trade-In and Reuse of Women’s Shoes
Create a trade-in counter

Comments from customers trading-in shoes• They felt fine when I tried them on,
but my feet started to hurt after wearing
them for long periods.

I’m glad my shoes
could be of use
to someone!

• I had issues with the widthand instep height.
• As I got older, I grew to prioritize comfort.
Marui store shoes sales floor

Sell trade-in shoes at special in-store corners

Categorize and repair trade-in shoes

Marui store

Product center of MOVING CO., LTD.

There weresome great finds.
I’m satisfied!

Evolution from Reuse to Reduction
Based on customer feedback, we are evolving our shoe reuse efforts to reduce the amount of shoes that go to waste.
We believe providing all customers with products and services that offer levels of satisfaction exceeding their expectations
will contribute to such reductions, and we are making various proposals to customers to realize this ideal.

Support to help customers
choose the best shoe for their footCreation of shoesthat perfectly match customers

In-store footmeasuring events

Shoes LABO Plus community website

We are committed to creating shoes that perfectly match customers’ feet and that provide unrivaled levels of comfort. Accordingly,
Rakuchin Kirei Pumps are offered in a total of 24 sizes, consisting of
12 different lengths available in two width variations.

MARUI GROUP’s CSR reports (Japanese only)
www.0101maruigroup.co.jp/csr/report.html
71Corporate Governance
As of June 25, 2015

Basic Policy for Corporate Governance
It is the Company’s basic policy to prioritize sound andfair management and pursue stable long-term improvements in corporate value. The Company promotes
highly transparent management and continually reinforces supervisory functions. Directors are given short

External Directors
Koichiro Horiuchi

Etsuko Okajima

Both external directors are also independent directors as
stipulated by the Tokyo Stock Exchange. They utilize theirunique experience and insight to stimulate lively discussion during meetings of the Board of Directors while also
exercising a restraint function on the Company’s
management.

See also Messages from the External Directors on pages 27 and 28

terms of service and multiple external directors havebeen appointed to further enhance ­management trans-

The Board of Directors is a body for supervising
operational execution and discussing the structure ofparency and ensure fairness.

the Group’s strategies with the aim of improving corpo-

1. Corporate Governance System rate value. The term of directors is set at one year to

The Company employs the Company with Company

ensure the transparency of operational execution and

Auditors system described in the Companies Act ofclarify management responsibility. In principle, the Board

Japan, with its Board of Directors consisting of six direc-

of Directors meets 10 times a year.

tors and its Audit & Supervisory Board consisting of four
Audit & Supervisory Board members.
Moreover, an executive officer system has been intro-

Audit & Supervisory Board andAudit & Supervisory Board Members

duced to strengthen executive management systems

The Company’s Audit & Supervisory Board consists ofthroughout the Group. On June 25, 2015, steps were taken

four members: two full-time Audit & Supervisory Board

to improve the flexibility of executive management, includ-

members and two external Audit & Supervisory Board

ing expanding the use of the executive officer system andmembers, both of whom are also independent auditors

reducing the number of directors from ten to six. In addi-

as stipulated by the Tokyo Stock Exchange. On June 25,

tion, we strove to reinforce supervisory functions for the2015, Hideaki Fujizuka was newly appointed as a full-

Board of Directors by making it easier for the opinions oftime Audit & Supervisory Board member. Joining fromthe external directors, who are independent from manage-

outside the Company, Mr. Fujizuka has gained a wealth ofment, to be incorporated into management practices.

experience and a breadth of insight at major financial
institutions and operating companies.

Board of Directors and Directors

The four Audit & Supervisory Board members are

As of June 25, 2015, the Board of Directors had a total

responsible for formulating audit policies and plans. Theyof six members, consisting of four directors and two

also receive reports from directors and the accounting

external directors.

auditor with regard to the execution of their duties. In
addition, the Audit & Supervisory Board members takeDirectors

steps to enhance audit functions, including attending meet-

Hiroshi Aoi
President andRepresentative
Director

Representative
Executive Officer—

Motohiko Sato

Director and Senior
Managing Executive
Officer, and CFO

In charge of Corporate Planningand Finance
Responsible for Credit Card Services
Business and Information Systems

Management Committee

Masao
Nakamura

Director and Managing
Executive Officer

Responsible for Retailing andStore Operation Businessa forum for discussing and exchanging information

Tomoo Ishii

Director and Managing
Executive Officer, andChief Operating Officer

Healthcare Promotion and General
Manager, Personnel Division
In charge of General Affairs and
Healthcare Promotionof executive officers, the Management Committee

ings of the Board of Directors and other important meetings and holding periodic meetings with the president.

The Management Committee meets regularly to provide
regarding Groupwide operational execution. Comprisedfunctions as the highest decision-making body.
Effective April 2015, the range of authority of theManagement Committee was revised to allow for
swifter decision making.

72

Initiatives to Strengthen Corporate Governance System	
2007

Changed to a holding company system

2008

Appointed first external director
Shortened the term of all directors to one year to clarify management responsibilities

2014

Appointed second external director
Began pursuing improved corporate value under the mantra of a United MARUI GROUP

2015

Expanded the use of the executive officer system and reduced the number of directors
from 10 to 6 to improve the flexibility of executive management
Established and disclosed the Criteria for Independence of External Directors and Audit & Supervisory Board Members

Overview of Corporate Governance System
Organizational structure
Board ofMembers
Directors
Term
External directors
Activities of external directors

Company with Company Auditors
6
1 year2 (independent directors)
Koichiro Horiuchi		Participated in all 10 meetings of the Board of Directors
Etsuko Okajima		Participated in all 8 meetings of the Board of Directors held
after appointment at the 78th Ordinary General Meeting of
Shareholders
4
4 years
2 (independent auditors)(April 1, 2014 – March 31, 2015)

Audit &
Supervisory
Board

Members
Term
External Audit &Supervisory Board members
Activities of external Audit &Supervisory Board members

Tadashi Ooe(April 1, 2014 – March 31, 2015)

Participated in all 10 meetings of the Board of Directors
and all 15 meetings of the Audit & Supervisory Board
Participated in all 10 meetings of the Board of Directors
and all 15 meetings of the Audit & Supervisory Board

Takehiko Takagi

Corporate Governance System
Ordinary General Meeting of Shareholders
Appoint / Dismiss

Appoint / Dismiss
Coordinate

Audit &
Supervisory
Board

Appoint / Dismiss
Audit

Select / Discharge

Board of Directors
ReportDirectPresident
ReportReportManagement
Committee

Compensation
Committee

Compliance Promotion Board
Chairman: President
Members: 14 (including 3 directors and2 Audit & Supervisory Board members)

Audit

Coordinate

Public Relations IR Committee

Chairman: President

Members: 8

Internal Control Committee

Chairman: Senior Managing Executive Officer

Members: 14

Environment CSR Promotion Committee

Chairman: Managing Executive Officer

Members: 9

Personal Information Protection
Promotion Committee

Chairman: Senior Executive Officer

Members: 8

Safety Control Committee

Chairman: Senior Executive Officer

Members: 12

Insider Trading Prevention Committee

Chairman: Senior Managing Executive Officer

Members: 4

Legal Advisor

Report / Participate

Audit Department• Executive in charge of audits• Executive in charge of internal control

Consult

General Affairs Department• Executive in charge of legal affairs• Executive in charge of personal
information protection

Audit

Internal Notification
SystemHead Office
Divisions

Communicate

Accounting Auditor

ReportCommittees

MARUI Group Code of Conduct

ReportGroup Companies
Stores / Specialty Stores / Offices

ReportConsult

73

Support Systems for External Directors

Factors regarding Appointment of External Directors

and Audit & Supervisory Board Members

and Audit & Supervisory Board Members

The Corporate Planning Division, the General Affairs

The Company has established the Criteria for

Department, and the Audit Department are responsible

Independence of External Directors and Audit &for supporting external directors and Audit & Supervisory

Supervisory Board Members to ensure the independence

Board members. In addition, materials related to meet-of external directors and Audit & Supervisory Board mem-ings of the Board of Directors are distributed to thesebers and guarantee that they can make objective decisions.

individuals ahead of time, and briefings on the content
of these materials are provided as necessary.

 ee also Criteria for Independence of External Directors
Sand Audit & Supervisory Board Members on page 77

Reason for Appointment of External Directors and Audit & Supervisory Board Members
Koichiro Horiuchi
External Director(Independent Director)
Etsuko Okajima
External Director(Independent Director)
Tadashi Ooe
External Audit &Supervisory Board Member(Independent Auditor)
Takehiko Takagi
External Audit &Supervisory Board Member(Independent Auditor)

Mr. Horiuchi has accumulated a wealth of management experience and insight at FUJI KYUKO CO., LTD. In the past, he has
effectively carried out his duties as an external director of the Company by actively posing questions and offering advice froman independent and objective standpoint. Mr. Horiuchi was therefore selected to serve as an external director so that hemay continue contributing to the strengthening of the management supervisory function.
Ms. Okajima has accumulated a wealth of management experience and insight at ProNova Inc. as well as a deep understandingof diversity. In the past, she has effectively carried out her duties as an external director of the Company by actively posing
questions and offering advice from an independent and objective standpoint. Ms. Okajima was therefore selected to serveas an external director so that she may continue contributing to the strengthening of the management supervisory function.
Mr. Ooe has accumulated a wealth of legal experience and insight as an attorney. In the past, he has effectively carried out
his duties as an external Audit & Supervisory Board member of the Company. Mr. Ooe was therefore selected to serveas an external Audit & Supervisory Board member so that he may continue conducting impartial audits.

Mr. Takagi is a licensed tax accountant and has accumulated a wealth of specialized insight and experience related toaccounting. In the past, he has effectively carried out his duties as an external Audit & Supervisory Board member of theCompany. Mr. Takagi was therefore selected to serve as an external Audit & Supervisory Board member so that he may
continue conducting impartial audits.

* Ms. Okajima is also Representative and CEO of ProNova Inc. This company possesses specialties in diversity and has therefore been contracted by the Company
to provide assistance with trainings on supporting the contributions of female employees. Such assistance has been provided for a total of eight trainings, and com­pensation of ¥2 million was paid to ProNova in the fiscal year ended March 31, 2015. Regardless of this transactional relationship, Ms. Okajima meets the Company’s
Criteria for Independence of External Directors and Audit & Supervisory Board Members, and this relationship has no impact on her actual independence from theCompany’s management.

Compensation of Directors andits compensation systems for directors through such

Audit & Supervisory Board Members

means as introducing stock option systems.

As part of management reforms, the Company ceased

Compensation for directors includes fixed basic

establishing new savings accounts for retirement benefitscompensation as well as stock-option-based compen-

for directors and Audit & Supervisory Board members insation provided as a form of performance-linked com-

October 2003 and abolished the retirement benefits

pensation. However, external directors are only paid

system for directors and Audit & Supervisory Board mem-basic compensation in consideration of their role.

bers in June 2008. Furthermore, the Company is revising

At the Ordinary General Meeting of Shareholders

Compensation of Directors and Audit & Supervisory Board Members in Fiscal Year Ended March 31, 2015
Total compensation(millions of yen)Compensation by type(millions of yen)
Basic compensation

Stock options

Number of recipients(people)Directors (excluding external directors)

200

173

27

8

Audit & Supervisory Board members(excluding external Audit & Supervisory Board members)

34

34

—

3

External directors and Audit & Supervisory Board members

33

33

—

4

* In addition to the above amount of total compensation, a total of ¥54 million was paid to three directors by subsidiaries.

74

held on June 27, 2012, the upper limit for full-year com-

healthy, compliant with relevant laws and regulations,pensation paid to directors was set at ¥300 million

and supported by all Group members.

(excluding employee salaries paid to directors that arealso employees of the Company or Group companies).

MARUI Group Code of Conduct (Japanese only)
www.0101maruigroup.co.jp/ci/action.html

Separate from this amount, the upper limit for new share
warrants issued to directors (excluding external direc-

Risk Management Systemtors) through the stock-option-based compensation

The Company has established six committees tosystem has been set at ¥100 million. Compensation paid

manage risks: Public Relations IR Committee, Internal

to individual directors is decided by the Compensation

Control Committee, Environment CSR Promotion

Committee, which external directors participate in, based

Committee, Personal Information Protection Promotion

on consideration of the director’s level of responsibility

Committee, Safety Control Committee, and Insider

for Group management, progress toward the targets of

Trading Prevention Committee. Through these commit-

the medium-term management plan, and other factors.

tees, swift improvements to workflow processes are

The upper limit for monthly compensation of Audit &pursued while steps are taken to prevent the actualization

Supervisory Board members is ¥6 million. Compensationof risks. Also, the Compliance Promotion Board, which isfor individual Audit & Supervisory Board members is decided

chaired by the president, has been established to over-through discussions by the Audit & Supervisory Board.

see these committees and manage Groupwide risks.

Accounting Auditor Compensation

between the General Affairs Department and the Audit

The Company has selected independent auditing firm

Department. These organizations document and moni-

KPMG AZSA LLC to perform accounting audits, andtor the business operations of Group companies as wellcompensation is paid accordingly. Appropriate

as anticipated risks and their countermeasures with thecompensation amounts are decided based on theaim of minimizing exposure to management risks.

Internal control is promoted through coordination

Company’s scale and business characteristics. In addition,

Furthermore, the MARUI Group Hot Line has been

the Company pays KPMG AZSA compensation for non-established to facilitate the prevention and early discov-

auditing duties, such as subcontracted construction of

ery of potential issues. Through this hotline, issues may

comfort letters regarding corporate bonds.

be reported to an internal consultation office or directly
to an outside lawyer.

Accounting Auditor Compensationin Fiscal Year Ended March 31, 2015MARUI GROUP(millions of yen)

Consolidated
subsidiaries(millions of yen)Compensation foraudit certification activities

100

37

Compensation based on
non-audit activities

1

2

Other Activities
The Company’s IR activities in the fiscal year ended
March 31, 2015, included holding quarterly financial
results briefings for analysts and institutional investors
and participating in conferences sponsored by securities companies. Going forward, we will actively expand
opportunities for interactions with investors in Japan

2. I nternal Control and Risk Management Systems Internal Control System
The Company is promoting sound, transparent, andefficient management and has established internal control systems for the perspective of Groupwide management. Moreover, the Group has established the MARUIGroup Code of Conduct. We are spreading awarenessof this code to ensure that corporate activities are

and overseas.
Investor relations informationwww.0101maruigroup.co.jp/english.html

Also, MARUI GROUP is advancing CSR activities,
the details of which are disclosed each year in the
Company’s CSR reports (Japanese only).
MARUI GROUP’s CSR reports (Japanese only)
www.0101maruigroup.co.jp/csr/report.html

75

3. Special Notes shareholders and other investors. Even if a large-scale

Takeover Defense Measures (Measures to Prevent

acquisition of shares is intended to be conducted, theLarge-Scale Acquisitions of the Company’s Stock)Company believes that the judgment on whether or not to

At a meeting of the Board of Directors held on May 12,

allow such an acquisition to proceed should be left finally2008, it was resolved that the Company would intro-

to shareholders. Accordingly, the Company will not reject

duce measures to prevent large-scale acquisitions of its

such acquisitions should they be deemed to contribute tostock (takeover defense measures). The introduction of

the improvement of corporate value and the protection ofthese measures was approved at the 72nd Ordinary

the common interests of shareholders of the Company.

General Meeting of Shareholders held on June 27, 2008.

However, it is possible that a large-scale acquisition of

Later, at the 75th Ordinary General Meeting ofshares may be conducted for purposes that do not con-Shareholders held on June 29, 2011, the Company

tribute to the improvement of corporate value and thereceived approval to update these measures to reflect

protection of the common interests of shareholders offormulaic revisions and other changes made necessary by

the Company. Such cases include when the acquiring

the digitization of securities. At the 78th Ordinary Generalcompany has no intention of rationally managing theMeeting of Shareholders held on June 26, 2014, share-target company and therefore poses the threat of unre-holder approval was received to conduct a renewal ofcoverable damage to the target company; when the salethese measures that did not entail substantial amendments.

of shares of the target company is effectively forced
upon shareholders; and when sufficient time is not given

1. B asic policy for persons having control in determining
the Company’s financial and business policies
With respect to persons who have control in determin-to the shareholders or the board of directors of the target
company to consider the conditions of the acquisition or
to the board of directors to make a counter proposal.

ing the Company’s financial and business policies, the

The Company deems purchasers who conduct

Company desires that such control be held by persons

acquisitions of this nature to be inappropriate for having

committed to improving corporate value and protecting

control in determining the Company’s financial andthe common interests of shareholders of the Company.

business policies.

In order to improve corporate value and protect thecommon interests of shareholders of the Company, it is

2. Purpose of takeover defense measuresimperative that the Company be managed stably fromThe Company cannot deny the possibility of a large-

a medium-to-long-term perspective based on a fullscale acquisition of shares being conducted for pur-understanding of the Company’s corporate philosophy

poses that do not contribute to the improvement ofand management resources.

corporate value and the protection of the common

At present, the Company is exerting its best efforts tointerests of shareholders of the Company. For thisdevelop its business amid extremely severe competition

reason, takeover defense measures are being imple-

in the retail industry in order to improve corporate valuemented to protect corporate value and the common

and protect the common interests of shareholders of theinterests of shareholders. To this end, the takeover

Company. However, although the capital market in Japan

defense measures are designed, in the event that ais legally regulated to a certain degree, it is still entirely

large-scale acquisition of shares is to be conducted, topossible that large quantities of a listed company’s stock

secure a sufficient amount of information and time to be

may be acquired unilaterally without undergoing theused by the shareholders of the Company to make anprocess of sufficient negotiation and agreement with theinformed decision or by the management or indepen-

management of the company in question.

dent committees of the Company to negotiate or coor-

As the Company is a listed company, it goes without
saying that the purchase and sale of the Company’s sharesshould be conducted at the complete discretion of76

dinate with the acquirers.
For details on the Company’s takeover defense measures, please refer tothe related press release via the link below (Japanese only).
www.0101maruigroup.co.jp/pdf/settlement/14_0513/14_0513_2.pdf

Criteria for Independence of External Directors   6. The individual must not be a consultant, a certified publicand Audit & Supervisory Board Members

accountant or other accounting specialist, or a lawyer or

MARUI GROUP aims to ensure the appropriate levels

other legal specialist receiving large amounts of monetaryof objectivity and transparency necessary for effective
corporate governance. For this reason, it has establishedthe following criteria for determining the independenceof external directors, external Audit & Supervisory Board
members, and candidates for these two positions.

payments or other financial assets (more than ¥10 million)
from the Company, its subsidiaries, or its affiliates that are
separate from the compensation paid for services as adirector or Audit & Supervisory Board member. The individual also must not belong to a company or other organization that receives such payments or assets.
   7. The individual must not receive large amounts of monetary   1. The individual must not be a person involved in operation*1

payments or other financial assets (more than ¥10 million)of the Company, its subsidiaries, or its affiliates and mustas donations from the Company, its subsidiaries, or its

not have been a person involved in operation during theaffiliates and must not belong to a company or other orga-

past 10 years.

nization that receives such donations.

   2. T he individual must not be a major supplier* of the   8. The individual must not be the accounting auditor of theCompany, its subsidiaries, or its affiliates or a person

Company. The individual also must not belong to a com-involved in operation of a major supplier.

pany or other organization that serves as the accounting2   3. The individual must not be a major customer*3 of theCompany, its subsidiaries, or its affiliates or a person
involved in operation of a major customer.
   4. T he individual must not be a major shareholder of theauditor of the Company.
   9. The individual must not have been applicable under items
2. to 8. during the past five years.
10. T he individual must not be a relative (one’s spouse or second-

Company possessing direct or indirect holdings equating

degree relatives) of an individual that qualifies under items

to 10% or more of voting rights or a person involved in

2. to 8. (only applicable to relatives of important persons

operation of a major shareholder.

involved in operation*4 for all items except items 6. and 8.).

   5. T he individual must not be a person involved in operation

11. The individual must not be a person involved in operation ofof an entity that possesses direct or indirect holdings

another company at which a person involved in operation ofequating to 10% or more of the total voting rights of thethe Company, its subsidiaries, or its affiliates serves as an

Company, its subsidiaries, or its affiliates.

external director or Audit & Supervisory Board member.

Notes:*1 A “person involved in operation” is defined as an executive director, executive officer, or employee with operational execution
responsibilities of a stock company; a director of a non-company legal entity or organization; or individuals serving persons in similar
positions or at similar companies, non-company legal entities, or organizations.
*2 A “major supplier” is defined as an entity that fulfills one of the following conditions:   1. A supplier group (the corporate group to which the supplier that serves as the direct transaction counterparty belongs) that provides
products or services to the Company, its subsidiaries, or its affiliates and for which transactions with the Company, its subsidiaries,
and its affiliates equated to more than ¥10 million and represented more than 2% of the total consolidated net sales or transaction
revenues of the supplier group in the most recently completed fiscal year.
   2. A supplier group with which liabilities of the Company, its subsidiaries, or its affiliates are associated and for which the applicableliabilities equated to more than ¥10 million and represented more than 2% of the consolidated total assets of the supplier group asof the end of the most recently completed fiscal year.
*3 A “major customer” is defined as an entity that fulfills one of the following conditions:   1. A customer group (the corporate group to which the customer that serves as the direct transaction counterparty belongs) to which
the Company, its subsidiaries, or its affiliates provide products or services and for which the total amount of transactions with thecustomer group equated to more than ¥10 million and represented more than 2% of the consolidated total operating revenues of
the Company in the most recently completed fiscal year.
   2. A customer group possessing liabilities that are associated with the Company, its subsidiaries, or its affiliates and that equated tomore than ¥10 million and represented more than 2% of the consolidated total assets of the Company as of the end of the mostrecently completed fiscal year.
   3. A financial group (the financial group to which the customer that serves as the direct transaction counterparty belongs) from which
the Company, its subsidiaries, or its affiliates procure funds through borrowings and from which the total amount of funds borrowed
represented more than 2% of the consolidated total assets of the Company as of the end of the most recently completed fiscal year.
*4 “Important persons involved in operation” refers to directors, executive officers, and employees with operational execution responsibilities ranked as division manager or higher or individuals with similar operational execution authority.

77Directors, Audit & Supervisory Board Members, and Executive Officers
As of June 25, 2015

Directors

Hiroshi Aoi

Koichiro Horiuchi

Etsuko Okajima

President and Representative Director
Shares held: 2,020,900
Born: January 17, 1961

External Director
Shares held: 0
Born: September 17, 1960

External Director
Shares held: 0
Born: May 16, 1966

Jul. 1986 Joined the Company
Apr. 1991	Director and General Manager,
Sales Planning Headquarters
Apr. 1995	Managing Director andDeputy General Manager,
Sales Promotion Headquarters andGeneral Manager, Sales Planning Division
Jan. 2001	Managing Director and General Manager,
Sales Promotion Headquarters
Jun. 2004	Executive Vice President andRepresentative Director
Apr. 2005	President and Representative Director
Oct. 2006	President and Representative DirectorRepresentative Executive Officer(Incumbent)

Apr. 1983	Joined Long-Term Credit Bank of Japan
Mar. 1988	Joined FUJI KYUKO CO., LTD.
General Manager, Corporate Planning
Division, FUJI KYUKO CO., LTD.
Jun. 1988	Director, FUJI KYUKO CO., LTD.
Feb. 1989	Senior Managing Director,
FUJI KYUKO CO., LTD.
Jun. 1989	Representative Director andSenior Managing Director,
FUJI KYUKO CO., LTD.
Sep. 1989	President and Representative Director,
FUJI KYUKO CO., LTD. (Incumbent)
Jun. 2008 External Director (Incumbent)
Jun. 2012	External Audit & Supervisory Board
Member, Yamanashi Chuo Bank, Ltd.
(Incumbent)

Apr. 1989 Joined Mitsubishi Corporation
Jan. 2001 Joined McKinsey & Company
Jul. 2005	Representative and CEO,GLOBIS Management Bank
Jun. 2007	Representative and CEO,
ProNova Inc. (Incumbent)
Jun. 2014	External Director,
Astellas Pharma Inc. (Incumbent)
External Director (Incumbent)

Participation in committees:

Participation in committees:
Compensation Committee

Management Committee (Chairman)
Compliance Promotion Board (Chairman)
Public Relations IR Committee (Chairman)
Compensation Committee

Participation in committees:
Compensation Committee

Motohiko Sato

Masao Nakamura

Tomoo Ishii

Director
Shares held: 44,600
Born: December 17, 1953

Director
Shares held: 16,900
Born: June 11, 1960

Director
Shares held: 14,100
Born: July 16, 1960

Mar. 1977 Joined the Company
Jan. 2000	General Manager, Supply Chain andLogistics Management Division,
Sales Promotion Headquarters
Jun. 2005	Director and General Manager,
Group Corporate Planning DivisionJun. 2008	Managing Director andManaging Executive Officer
Apr. 2012	Senior Managing Director andSenior Managing Executive Officer
Apr. 2015	Director and Senior Managing
Executive Officer, and CFO
In charge of Corporate Planning and FinanceResponsible for Credit Card Services
Business and Information Systems (Incumbent)

Apr. 1983 Joined the Company
May 2003	General Manager, Store Planning Division,
Sales Promotion Headquarters
Apr. 2007	Executive Officer and General Manager,
Group Business Promotion DivisionJun. 2008	Director and Executive Officer,
General Manager, Corporate Planning
Division and General Manager,
Business Development Division
Apr. 2011	Managing Director and Managing
Executive Officer
President and Representative Director,
MARUI CO., LTD. (Incumbent)
Apr. 2015	Director and Managing Executive Officer
Responsible for Retailing andStore Operation Business (Incumbent)

Apr. 1983 Joined the Company
Oct. 2005	General Manager,
Group Compliance Division
Apr. 2007	Executive Officer and General Manager,
Group Compliance DivisionJun. 2009	Director and Executive Officer,
General Manager,
General Affairs Division
Apr. 2013	Director and Executive Officer,
General Manager, Personnel Division
Apr. 2015	Director and Managing Executive Officer,
and Chief Operating Officer
Healthcare Promotion andGeneral Manager, Personnel DivisionIn charge of General Affairs and
Healthcare Promotion (Incumbent)

Participation in committees:
Management Committee
Compliance Promotion Board
Public Relations IR Committee

Participation in committees:
Management Committee
Compliance Promotion Board
Public Relations IR Committee
Environment CSR Promotion Committee
Safety Control Committee
Compensation Committee

Participation in committees:
Management Committee
Compliance Promotion Board
Public Relations IR Committee
Internal Control Committee (Chairman)
Insider Trading Prevention Committee (Chairman)
Compensation Committee

78

Audit & Supervisory Board Members

Hideaki Fujizuka

Tetsuji Sunami

Audit & Supervisory Board Member (Full time)
Shares held: 0
Born: September 1, 1955

Audit & Supervisory Board Member (Full time)
Shares held: 1,700
Born: August 13, 1958

Apr. 1980	Joined Mitsubishi Bank Ltd. (currently
The Bank of Tokyo Mitsubishi UFJ, Ltd.)
Jun. 2007	Executive Officer and General Manager,
General Affairs Dept.,
The Bank of Tokyo Mitsubishi UFJ, Ltd.
Jun. 2010	President and Director,
Chitose Kosan, Co., Ltd.
Apr. 2012	Director, Senior Executive Managing
Officer and Group President ofCorporate Center, Olympus Corporation
Apr. 2015 Director, Olympus Corporation
Jun. 2015	Audit & Supervisory Board Member(Full time) (Incumbent)

Mar. 1981 Joined the Company
Jan. 2002	General Manager, Store Planning Division,
Sales Promotion Headquarters
Oct. 2004	General Manager, DM Business Division,
Sales Promotion Headquarters
Apr. 2006	Representative and CEO,Marui Voi, Co., Ltd.
Oct. 2007	Managing Director,
M & C SYSTEMS CO., LTD.
Apr. 2011	Representative and CEO,MRI Co., Ltd.
Apr. 2014 Advisor
Jun. 2014	Audit & Supervisory Board Member(Full time) (Incumbent)

Participation in committees:
Management Committee
Compliance Promotion Board
Public Relations IR Committee

Participation in committees:
Compliance Promotion Board
Internal Control Committee

Tadashi Ooe

Takehiko Takagi

External Audit & Supervisory Board Member
Shares held: 65,100
Born: May 20, 1944

External Audit & Supervisory Board Member
Shares held: 2,300
Born: January 23, 1945

Apr. 1969	Registered as Attorney
Apr. 1989	Practicing-Attorney, Professor for
Civil Advocacy,
Legal Training and Research Instituteof the Supreme Court of Japan
Mar. 1994	Outside Audit & Supervisory Board
Member, Canon Inc. (Incumbent)
Jun. 2004	External Audit & Supervisory Board
Member (Incumbent)
Jun. 2011 Director, Jeco Co., Ltd. (Incumbent)
Jun. 2015	Outside Director,
Nissan Chemical Industries, Ltd.
(Incumbent)

Jul. 2001	Chief, Kanazawa Regional
Taxation Bureau
Jul. 2002 President, National Tax College
Jul. 2003	Retired from National Tax
Administration Agency
Aug. 2003	Registered as Certified Public
Tax Accountant
May 2006	External Audit & Supervisory Board
Member, TOH-TEN-KOH Corporation(Incumbent)
Jun. 2008	External Audit & Supervisory Board
Member (Incumbent)
Jun. 2010	External Audit & Supervisory Board
Member, KAWADA TECHNOLOGIES, Inc.
(Incumbent)

79

Executive Officers

Hiroshi Aoi

Motohiko Sato

Masao Nakamura

Representative Executive Officer
Born: January 17, 1961

Senior Managing Executive Officer
Born: December 17, 1953

Managing Executive Officer
Born: June 11, 1960

Jul. 1986 Joined the Company
Apr. 1991	Director and General Manager,
Sales Planning Headquarters
Apr. 1995	Managing Director andDeputy General Manager,
Sales Promotion Headquarters andGeneral Manager, Sales Planning Division
Jan. 2001	Managing Director and General Manager,
Sales Promotion Headquarters
Jun. 2004	Executive Vice President andRepresentative Director
Apr. 2005 President and Representative Director
Oct. 2006	President and Representative DirectorRepresentative Executive Officer(Incumbent)

Mar. 1977 Joined the Company
Jan. 2000	General Manager, Supply Chain andLogistics Management Division,
Sales Promotion Headquarters
Jun. 2005	Director and General Manager,
Group Corporate Planning DivisionJun. 2008	Managing Director andManaging Executive Officer
Apr. 2012	Senior Managing Director andSenior Managing Executive Officer
Apr. 2015	Director and Senior Managing
Executive Officer, and CFO
In charge of Corporate Planning and FinanceResponsible for Credit Card Services
Business and Information Systems (Incumbent)

Participation in committees:
Management Committee (Chairman)
Compliance Promotion Board (Chairman)
Public Relations IR Committee (Chairman)
Compensation Committee

Participation in committees:
Management Committee
Compliance Promotion Board
Public Relations IR Committee
Internal Control Committee (Chairman)
Insider Trading Prevention Committee (Chairman)
Compensation Committee

Apr. 1983 Joined the Company
May 2003	General Manager, Store Planning Division,
Sales Promotion Headquarters
Apr. 2007	Executive Officer and General Manager,
Group Business Promotion DivisionJun. 2008	Director and Executive Officer,
General Manager, Corporate Planning
Division and General Manager,
Business Development Division
Apr. 2011	Managing Director and Managing
Executive Officer
President and Representative Director,
MARUI CO., LTD. (Incumbent)
Apr. 2015	Director and Managing Executive Officer
Responsible for Retailing andStore Operation Business (Incumbent)

Takashi Wakashima

Toshikazu Takimoto

Tomoo Ishii

Managing Executive Officer
Born: November 19, 1956

Managing Executive Officer
Born: November 5, 1959

Managing Executive Officer
Born: July 16, 1960

Mar. 1981 Joined the Company
Jan. 2001	General Manager, Product Planning
Division, Sales Promotion Headquarters
Jun. 2006	Director, Deputy General Manager,
Sales Promotion Headquarters andGeneral Manager, Sales Planning Division
Apr. 2011	Director and Executive Officer
President and Representative Director,
MOVING CO., LTD. (Incumbent)
Apr. 2013	Director and Executive OfficerIn charge of CSR Promotion andReal Estate Business & ArchitecturePresident and Representative Director,
Totsuka Commercial Buildings
Management Co., Ltd. (Incumbent)
Jun. 2013	President and Representative Director,
Nakano Suncuore Co., Ltd. (Incumbent)
Jun. 2015	Director and Managing Executive OfficerIn charge of CSR Promotion and Real
Estate Business & Architecture (Incumbent)Director, AIM CREATE CO., LTD. (Incumbent)

Mar. 1982 Joined the Company
Oct. 2003	General Manager, Credit Card Planning
Division, Zero First Co., Ltd.
Mar. 2009	Executive Officer and General Manager,
Group Profit Improvement Division
Oct. 2009 Director, Epos Card Co., Ltd.
Apr. 2011	Managing Director, Epos Card Co., Ltd.
Apr. 2012	President and Representative Director,
Epos Card Co., Ltd. (Incumbent)President and Representative Director,
Zero First Co., Ltd.
Director, MRI Co., Ltd. (Incumbent)
Jun. 2012 Director and Executive Officer
Apr. 2015	Managing Executive OfficerIn charge of Credit Card Services
Business (Incumbent)

Apr. 1983 Joined the Company
Oct. 2005	General Manager,
Group Compliance Division
Apr. 2007	Executive Officer and General Manager,
Group Compliance DivisionJun. 2009	Director and Executive Officer,
General Manager,
General Affairs Division
Apr. 2013	Director and Executive Officer,
General Manager, Personnel Division
Apr. 2015	Director and Managing Executive Officer,
and Chief Operating Officer
Healthcare Promotion andGeneral Manager, Personnel DivisionIn charge of General Affairs and
Healthcare Promotion (Incumbent)

Participation in committees:
Management Committee
Compliance Promotion Board
Public Relations IR Committee
Internal Control Committee
Personal Information Protection
Promotion Committee

Participation in committees:
Management Committee
Compliance Promotion Board
Public Relations IR Committee
Environment CSR Promotion Committee
Safety Control Committee
Compensation Committee

Participation in committees:
Management Committee
Compliance Promotion Board
Environment CSR Promotion Committee (Chairman)
Compensation Committee

80

Participation in committees:
Management Committee
Compliance Promotion Board
Public Relations IR Committee

Akira Ino

Nariaki Fuse

Hajime Sasaki

Senior Executive Officer
Born: January 21, 1955

Senior Executive Officer
Born: June 3, 1959

Senior Executive Officer
Born: November 24, 1963

Mar. 1977 Joined the Company
Jan. 2000	General Manager, Store Planning Division,
Sales Promotion Headquarters
Apr. 2004	Deputy General Manager,
Sales Promotion Headquarters
Jun. 2004	Director and Deputy General Manager,
Sales Promotion Headquarters
Oct. 2007 Director and Executive Officer
May 2009	Senior Managing Executive Officer,
AIM CREATE CO., LTD.
Apr. 2013	President and Representative Director,
AIM CREATE CO., LTD. (Incumbent)
Apr. 2015 Senior Executive Officer (Incumbent)

Mar. 1982 Joined the Company
Feb. 2005	General Manager, Customer System
Development Department,
M & C SYSTEMS CO., LTD.
Apr. 2007 Director, M & C SYSTEMS CO., LTD.
Apr. 2011	Executive Officer
Managing Executive Officer,
M & C SYSTEMS CO., LTD.
Apr. 2013	President and Representative Director,
M & C SYSTEMS CO., LTD. (Incumbent)
Jun. 2013 Director and Executive Officer
Apr. 2015	Senior Executive OfficerIn charge of Audit andInformation Systems (Incumbent)

Apr. 1986 Joined the Company
Oct. 2007	Director and General Manager, Card
Planning Division, Epos Card Co., Ltd.
Oct. 2009	General Manager,
Demand Survey Department,
MARUI CO., LTD.
Apr. 2012	Director and General Manager,
Private Brand Department,
MARUI CO., LTD.
Apr. 2013	Executive OfficerDirector and General Manager,
Sales Department 3, MARUI CO., LTD.
Apr. 2014	Managing Director and General Manager,
Specialty Store Department,
MARUI CO., LTD.
Jun. 2014 Director
Apr. 2015	Director and Senior Executive Officer
Senior Managing Director, MARUI CO., LTD.
(Incumbent)Director, Epos Card Co., Ltd. (Incumbent)
Jun. 2015 Senior Executive Officer (Incumbent)

Participation in committees:
Management Committee
Compliance Promotion Board
Internal Control Committee

Participation in committees:
Management Committee
Compliance Promotion Board
Internal Control Committee
Personal Information Protection
Promotion Committee (Chairman)

Participation in committees:
Management Committee
Compliance Promotion Board
Internal Control Committee
Safety Control Committee (Chairman)

81

Yoshiaki Kogure

Masahiro Aono

Yoshinori Saito

Executive Officer
Born: September 5, 1960

Executive Officer
Born: March 4, 1962

Executive Officer
Born: July 25, 1962

Apr. 1983 Joined the Company
Mar. 2006	General Manager,
Group Financial Department
Apr. 2007 Executive Officer (Incumbent)
Jul. 2008	General Manager, Personnel Division
Oct. 2009	General Manager, Voi Business
Department, MARUI CO., LTD.
Mar. 2011	General Manager,
Corporate Planning Division
Apr. 2013	President and Representative Director,
MARUI FACILITIES Co., Ltd. (Incumbent)
May 2013	President and Representative Director,
Shiki City Development Co., Ltd.
(Incumbent)
Apr. 2015	Director, MARUI HOME SERVICE Co., Ltd.
(Incumbent)

Mar. 1984 Joined the Company
Mar. 2008	General Manager, Women’s Clothing andAccessories Department, MARUI CO., LTD.
Apr. 2010	General Manager, Women’s Fashion
Department, MARUI CO., LTD.
Apr. 2011	Director and General Manager, Business
Promotion Department, MARUI CO., LTD.
Apr. 2013	Executive Officer (Incumbent)
Apr. 2014	General Manager,
Store Business Promotion Department,
MARUI CO., LTD. (Incumbent)
Apr. 2015	Managing Director, MARUI CO., LTD.
(Incumbent)Director, AIM CREATE CO., LTD.
(Incumbent)

Mar. 1986 Joined the Company
Aug. 2006	General Manager, Planning Department,
MARUI CO., LTD.
Jul. 2008	Executive Officer (Incumbent)
General Manager, Financial Department
Apr. 2011	General Manager,
Direct Marketing Department,
MARUI CO., LTD.
Apr. 2013	General Manager,
Collaboration Card Business Department,
Epos Card Co., Ltd.
Oct. 2014	General Manager,
Sales Promotion Department,
Epos Card Co., Ltd. (Incumbent)
Apr. 2015	Managing Director, Epos Card Co., Ltd.
(Incumbent)Director, M & C SYSTEMS CO., LTD.
(Incumbent)

Participation in committees:
Management Committee
Compliance Promotion Board
Internal Control Committee

Yuko Ito
Executive Officer
Born: June 2, 1962
Mar. 1986 Joined the Company
Oct. 2007	General Manager,
Construction Department (Incumbent)
Apr. 2012	Director and Deputy General Manager,
Space Production Business Department,
AIM CREATE CO., LTD. (Incumbent)
Apr. 2014 Executive Officer (Incumbent)
Participation in committees:
Management Committee
Environment CSR Promotion Committee

82

Participation in committees:
Management Committee
Environment CSR Promotion Committee
Safety Control Committee

Participation in committees:
Management Committee

Hirotsugu Kato

Mayuki Igayama

Junko Tsuda

Executive Officer
Born: July 30, 1963

Executive Officer
Born: June 19, 1964

Executive Officer
Born: May 25, 1972

Mar. 1987 Joined the Company
Apr. 2013	General Manager,
Corporate Planning Division(Incumbent)
Apr. 2015 Executive Officer (Incumbent)

Apr. 1987	Joined the Company
Apr. 2009	General Manager,
New Business Department
Oct. 2009	Deputy General Manager,
Direct Marketing Department,
MARUI CO., LTD.
Apr. 2012	General Manager,
Direct Marketing Department,
MARUI CO., LTD.
Apr. 2014	Director and General Manager,
Direct Marketing Department,
MARUI CO., LTD. (Incumbent)
Apr. 2015	Executive Officer (Incumbent)
Director, MOVING CO., LTD. (Incumbent)

Mar. 1995 Joined the Company
Apr. 2014	Store Manager, Nakano Marui,
MARUI CO., LTD.
Apr. 2015	Executive Officer (Incumbent)Director and Store Manager,
Marui Family Shiki, MARUI CO., LTD.
(Incumbent)

Participation in committees:
Management Committee
Public Relations IR Committee
Internal Control Committee
Insider Trading Prevention Committee

Participation in committees:
Management Committee

Participation in committees:
Management Committee
Personal Information Protection
Promotion Committee

83Financial Information /Corporate Information

85

Financial and Non-Financial Summary
MARUI GROUP CO., LTD., and its consolidated subsidiaries

Fiscal years ended March 31

2005

2006

2007

2008

Total Group transactions:
Retailing and Store Operation
Credit Card Services
Retailing-Related Services
Eliminations*1
Total operating revenues
Revenue
Gross profit
Selling, general and administrative expenses
EBITDA*2
Operating income
Net income (loss)
Segment income:Retailing and Store Operation
Credit Card Services
Retailing-Related Services
Total assets
Shareholders’ equity
Installment sales accounts receivable
Consumer loans outstanding
Interest-bearing debt
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Cash and cash equivalents
Capital investments
Depreciation and amortization
Earnings (loss) per share (yen)Net assets per share (yen)Cash dividends per share (yen)Payout ratio (%)
Total return ratio (%)
Operating income margin (%)
Return on equity (%)
Return on assets (%)
Equity ratio (%)
Stock price at year-end (yen)Market capitalization (including treasury stock)(billions of yen)Price earnings ratio (times)
Price book-value ratio (times)
Total number of employees
Ratio of female employees (%)
Total number of stores
Total sales floor area (thousand m2)
Environment preservation expenditure (thousands of yen)
Electricity consumption (thousands of kWh)
CO2 emissions (t-CO2)

—
—
—
—
—
556,213—200,533
163,687
55,807
36,846
19,168—————561,539—
209,347
164,641
62,32244,70523,983—————552,140—
210,288
166,599
61,41543,688
4,248

—
—
—
—
—
493,533—
177,565
159,382
36,87018,183
7,603

16,417
18,032
5,167
712,644436,259
37,752249,252
181,135
41,100(19,105)(10,135)
53,30530,272
18,961
54.31
1,241
22.0
40.5
40.5
6.6
4.5
5.4
61.2
1,441

24,245
19,818
4,429
722,578432,695
40,045
258,488
201,175
36,116(33,846)(12,956)
42,61925,812
17,616
70.39
1,286
28.0
39.8
144.4
8.0
5.5
6.4
59.9
2,325

19,30921,892
6,913
740,373402,61051,310248,464
239,308
23,828(28,025)6,300
44,72230,293
17,727
12.92
1,233
28.0
216.7
646.1
7.9
1.0
6.1
54.4
1,445

10,645
5,740
6,772
695,491
336,445
73,781
222,534
277,537
13,9193,134(32,241)
29,53523,64918,686
24.91
1,207
28.0
112.4
911.3
3.7
2.1
2.4
48.4
1,061

531.2
26.5
1.2
8,558
39.9
32
381.4
—
—
125,935

857.1
33.0
1.8
8,156
39.4
31
381.4
—
—
150,975

532.7
111.8
1.2
8,154
39.9
28
381.4
588,300—
142,006

338.0
42.6
0.9
7,147
44.4
25
381.4
660,600—
125,628*1 Eliminations under total Group transactions represent the deduction of credit card transactions recorded in Retailing and Store Operation.
*2 Earnings before interest, taxes, and depreciation and amortization

86Millions of yen
2009

2010

2011

2012

2013

2014

2015

—
—
—
—
—
447,400—
160,125
150,986
28,5229,138(8,750)—————419,255—
149,926
139,488
29,695
10,438
5,104

—
—
—
—
—
406,472—
144,736
129,940
30,457
14,795(23,638)—————
412,408—
147,240
129,224
33,08518,015
5,251

—
—
—
—
—
407,366—
148,172
123,886
35,23724,285
13,255

1,297,250
338,705
1,054,706
34,695(130,857)
416,460
253,077
155,726
128,579
37,134
27,146
15,4091,469,111
322,866
1,234,339
33,816(121,910)
404,947
249,847
158,144
130,10238,33828,042
16,036

1,252
6,725
3,740
685,351
310,818
88,761
207,117
292,061
15,316(18,234)
2,409
29,026
24,073
19,384(31.90)
1,135
28.0
—
—
2.0
(2.7)
1.1
45.4
523

37
10,272
2,509
664,357
312,188
95,871
191,486
283,676
30,811(13,034)(14,519)
32,283
17,39819,257
18.65
1,140
14.0
75.1
75.1
2.5
1.6
1.5
47.0
678

2,110
13,704
1,568
628,910284,526
111,760
158,707
264,692
30,280(7,033)(22,926)
32,603
14,332
15,661(86.36)
1,039
14.0
—
—
3.6
(7.9)
2.2
45.2
537

7,547
10,6192,567
615,130
289,975
142,995
132,280
245,175
24,897(3,913)(23,660)
29,928
7,941
15,069
19.19
1,059
14.0
73.0
73.0
4.4
1.8
2.8
47.1
690

9,885
13,177
3,792
624,173
303,637
171,187
123,739
243,762
5,111
435(5,571)
29,940
7,665
10,951
48.43
1,109
15.0
31.0
31.0
6.0
4.5
3.9
48.6
975

10,562
15,634
4,523
664,019
315,446
213,466
125,215
264,824(9,227)(6,791)
16,14130,053
11,238
9,988
56.29
1,152
18.0
32.0
32.0
6.5
5.0
4.3
47.5
885

8,074
20,126
3,333
675,627
306,795
227,121
128,030
277,839
12,310(3,867)(7,267)31,229
9,786
10,296
58.87
1,166
19.0
32.3
125.3
6.9
5.2
4.2
45.4
1,365

166.6
—
0.5
7,085
44.6
25
444.8
731,900—
122,136

216.0
36.4
0.6
6,847
44.7
25
453.3
633,700
259,800
130,600

171.1
—
0.5
6,492
44.4
26
457.8
893,700
244,800
114,900

219.8
36.0
0.7
6,218
44.4
27
458.4
1,164,500
204,500
96,300

310.6
20.1
0.9
6,101
44.3
27
453.1
1,141,300
204,800
104,300

282.0
15.7
0.8
5,966
44.5
27
446.5
924,500
215,000
113,000

380.3
23.2
1.2
5,918
44.6
27
444.0
1,281,000
199,000
109,00087Management’s Discussion and Analysis of Operations

In the fiscal year ended March 31, 2015, the Japanese

Retailing-Related Services segments. Gross profit

economy continued to display a modest recovery trend

increased for the fourth consecutive year due to theon the back of increased corporate earnings and an

strong performance of the Credit Card Services segment.

improved job market. The recovery in these areas

Selling, general and administrative expenses rose 1.2%

stemmed from the benefits of government-spear-

year on year. While we worked to cut fixed costs and sys-

headed economic stimulus measures as well as thetematically lower sales promotion expenses, overallsignificant “Quantitative and Qualitative Monetary

expenses edged up due to higher variable costs, partially

Easing” policy of the Bank of Japan. Conversely, theas a result of increased loyalty point related expenses

outlook for consumer spending remained opaque due

stemming from a rise in the number of card transactions.
Due to the above, operating income increased 3.3%

to slow recovery in consumer confidence on account of
the influences of the consumption tax rate hike, higher

year on year, to ¥28.0 billion, and ordinary income rosecommodity prices following the yen’s depreciation, and

1.1%, up for the sixth consecutive year. Provision for loss

a decline in real wages.

on interest repayment of ¥12.7 billion was posted as an

In this economic environment, MARUI GROUP

extraordinary loss, while gain on sale of investment securi-

launched a new three-year, medium-term managementties of ¥12.1 billion was recorded as extraordinaryplan, based on which it worked to improve corporate value

income. As a result, net income increased 4.1% and earn-by pushing forward with measures to strengthen profitabil-ings per share (EPS) were up 4.6%, growing for the fourth

ity in pursuit of the plan’s goals of consolidated operatingconsecutive year. ROE rose to 5.2%, up 0.2 percentage

income of ¥36.0 billion or more and return on equity (ROE)

points from 5.0% in the fiscal year ended March 31, 2014.

of 6.0% or more in the fiscal year ending March 31, 2017.

Consolidated Financial Resultsin the Fiscal Year under Review
In the fiscal year ended March 31, 2015, total operating
revenues decreased 2.8% year on year. Operating revenues showed double-digit growth of 15.2% in theCredit Card Services segment, while the impacts of theconsumption tax rate hike caused operating revenues toConsolidated Financial Results
Total operating revenues¥404.9 billion (down 2.8%)

Gross profit¥158.1 billion (up 1.6%)

Selling, general andadministrative expenses¥130.1 billion (up 1.2%)

Operating income¥28.0 billion (up 3.3%)

Ordinary income¥28.0 billion (up 1.1%)

Net income¥16.0 billion (up 4.1%)

EPS¥58.9 (up 4.6%)

ROE

5.2% (up 0.2 points)

decline in the Retailing and Store Operation andTotal Operating Revenues

Operating Income / Operating Income Margin

Billions of yen

Billions of yen

%

500

30

9

20

6

10

3

400
300
200
100
0

2011

2012

2013

2014

2015

0

2011

■ Operating income

88

2012

2013

2014

Operating income margin

2015

0

Financial Results by Segment

Operating Income by Segment

See also MARUI GROUP’s Three Business Segments on page 54

Retailing and Store Operation¥8.1 billion (down 23.6%)

In the Retailing and Store Operation segment, operating

Credit Card Services¥20.1 billion (up 28.7%)

revenues were down due to the impacts of the con-

Retailing-Related Services¥3.3 billion (down 26.3%)

sumption tax rate hike and a shift in earnings source,from product sales to rent revenues, accompanying theAssets, Liabilities, and Net Assets

transition to shopping center style stores. Operating

The Company strives to maintain a sound financial posi-

income was down despite efforts to reduce fixed costs.

tion while emphasizing capital efficiency.

In the Credit Card Services segment, operating

The balance of operating receivables as of March

revenues showed double digit growth as profits were31, 2015, reached a new record high, increasing ¥16.4

buoyed by increased financial charges earned on install-billion from a year earlier. This result was largely due toment sales and on sales at affiliated merchants in con-the higher number of customers using EPOS cards atjunction with higher card shopping transaction volumes

Marui stores and strong growth in transactions at affili-

as well as a rise in interest income on consumer loans

ated merchants. Accordingly, total assets as of March 31,

following higher cash advance transactions. Operating

2015, were up ¥11.6 billion.

income similarly showed a massive increase, leading thisAt the same time, total liabilities grew ¥20.2 billion,

segment to record higher revenues and income for its

largely due to a ¥13.0 billion increase in interest-bearing

third consecutive year.

debt. The Company aims to ensure efficiency in the useof interest-bearing debt. While considering funding

In the Retailing-Related Services segment, revenues
and income decreased due to the absence of the large-

demand for expanding business operations, thescale internal construction order recorded in the previ-

Company pursues a policy of maintaining a level ofous fiscal year.

interest-bearing debt that is lower than the level ofoperating receivables. As of March 31, 2015, the ratio

Operating Revenues by Segment
Retailing and Store Operation
Outside customers

of interest-bearing debt to operating receivables was¥307.6 billion (down 6.2%)

78.2%, relatively unchanged from a year earlier.

¥302.7 billion (down 6.1%)

Net assets as of March 31, 2015, were down ¥8.6

Credit Card Services¥70.6 billion (up 14.3%)

Outside customers¥68.4 billion (up 15.2%)

billion from a year earlier. While net income of ¥16.0

Retailing-Related Services¥56.1 billion (down 5.6%)

billion was recorded, decreases in assets of ¥15.0 billion

Outside customers¥33.8 billion (down 2.5%)

for the acquisition of treasury stock and ¥4.9 billion for

Net Income (Loss) / Earnings (Loss) per ShareROE / ROA

Billions of yen

Yen

%

30

90

10

20

60

10

30

0

0

–10

–30

–20

–60

5

0

–5

–30

2011

■ Net income (loss)

2012

2013

Earnings (loss) per share

2014

2015

–90

–10

2011

ROE

ROA

2012

2013

2014

2015

89

dividends paid from capital surplus caused overall net

partially with store renovations, ¥4.9 billion in cash

assets to decline. As a result, the equity ratio was 45.4%,

dividends paid, and ¥15.0 billion in purchase ofdown 2.1 percentage points.

treasury stock.

Major Indicators

equivalents at end of period stood at ¥31.2 billion,

Due to the aforementioned factors, cash and cash

Operating receivables¥355.2 billion (up 4.9%)

Installment sales
accounts receivable¥227.1 billion (up 6.4%)

Operating loans¥128.0 billion (up 2.2%)

Fixed assets¥248.9 billion (down 0.2%)

Total liabilities¥368.4 billion (up 5.8%)

Interest-bearing debt

relatively unchanged from March 31, 2014.

¥277.8 billion (up 4.9%)
45.4% (down 2.1 points)

Equity ratio¥675.6 billion (up 1.7%)

Total assets

FY2014FY2015

ChangeCore operating
cash flow¥34.5 billion¥28.7 billion–¥5.7 billion

Change in operatingreceivables(¥43.7 billion) (¥16.4 billion)¥27.2 billion

Net cash provided by(used in) operating
activities¥306.8 billion (down 2.7%)

Shareholders’ equity

Cash Flow Items

Cash Flows
Cash flows generated over the period of the mediumterm management plan will be utilized to conduct¥12.3 billion¥21.5 billion

Purchase of property
and equipment(¥9.4 billion) (¥10.9 billion)–¥1.4 billion

Decrease (increase)in short-term investment securities¥4.8 billion

Net cash used ininvesting activities

growth investments and enhance shareholder returns.
Net cash provided by operating activities amounted
to ¥12.3 billion. Core operating cash flow, calculated by
excluding the rise in operating receivables from operating cash flow, came to ¥28.7 billion due to an increase of¥16.4 billion in the combined total of installment sales(¥9.2 billion)(¥0.0 billion)¥4.8 billion(¥6.8 billion)(¥3.9 billion)¥2.9 billion

Cash dividends paid(¥4.7 billion)(¥4.9 billion)–¥0.2 billion

Purchase oftreasury stock(¥0.0 billion) (¥15.0 billion) –¥15.0 billion

Net cash provided by(used in) financing
activities¥16.1 billion

Cash and cash equivalents at end of period ¥30.1 billion

accounts receivable and operating loans that resulted(¥7.3 billion) –¥23.4 billion¥31.2 billion¥1.2 billion

from the expansion of the Credit Card Services business.
Generated cash was used to conduct growth investments for improving corporate value and enhance shareholder returns. Specific outflows included ¥10.9 billion
in purchase of property and equipment associatedTotal Assets / Financial Leverage

Operating Receivables / Interest-Bearing Debt

Billions of yenTimes

Billions of yen

800

3.0

400

600

2.5

300

400

2.0

200

200

1.5

100

0

0

0

2011

■ Total assets

90

2012

Financial leverage

2013

2014

2015

2011

2012

■ Operating receivables

2013■ Interest-bearing debt

2014

2015

Consolidated Financial Results Forecasts for the
Fiscal Year Ending March 31, 2016 (as of August 4, 2015)

Consolidated Financial Results Forecasts“Total Group transactions” has been introduced as a new

Revenue¥251.0 billion (up 0.5%)

Gross profit¥162.0 billion (up 1.6%)

portray management performance. This indicator

Selling, general andadministrative expenses¥132.0 billion (up 0.5%)

reflects the total of the revenue from tenants and other

Operating income¥30.0 billion (up 7.0%)

sales in the Retailing and Store Operation segment, card

Net income attributable toowners of parent¥17.5 billion (up 9.1%)

management indicator designed to more accurately

shopping transactions at affiliated merchants and cash
advance transactions in the Credit Card Services segment, and sales to outside customers in the RetailingRelated Services segment.

Total Group transactions¥1,710.0 billion (up 16.4%)

EPS¥69.0 (up 17.2%)

ROE

5.8% (up 0.6 points)

Forecasts for Transactions by Segment

In addition, the method of calculating the sales in the

Retailing and Store Operation

Retailing and Store Operation segment was changed.

Credit Card Services

Previously, sales conducted through the consignment¥325.0 billion (up 0.7%)¥1,466.0 billion (up 18.8%)

Retailing-Related Services¥35.0 billion (up 3.5%)

buying system, in which products are procured from suppliers at the same time they are sold to customers, were

Forecasts for Revenue by Segment

reflected at total value, or the value of the items sold.

Retailing and Store Operation¥141.0 billion (down 4.5%)

However, based on international standards and the fact

Credit Card Services¥75.0 billion (up 9.6%)

that the Company does not assume inventory risks for

Retailing-Related Services¥35.0 billion (up 3.5%)

these transactions, it was decided to change the calcula-* Sales to outside customers onlytion method to show transactions at net value, which is theamount of income accruing to the Company. In conjunction with this change, the line item that was previously“total operating revenues” will be stated as “revenue.”
In the fiscal year ending March 31, 2016, significant

Forecasts for Operating Income by Segment
Retailing and Store Operation¥8.5 billion (up 5.3%)

Credit Card Services¥22.0 billion (up 9.3%)

Retailing-Related Services¥3.5 billion (up 5.0%)

growth is projected for total Group transactions, revenue, operating income, and net income attributable toowners of parent. In addition, all segments are expected
to record increased income.

Shareholders’ Equity / Equity Ratio

Cash Dividends per Share / Total Return Ratio

Billions of yen

%

400

50.0

300

47.5

200

45.0

100

42.5

0

2011

■ Shareholders’ equity

2012

2013

Equity ratio

2014

2015

0

Yen%

25

150

20

120

15

90

10

60

5

30

0

2011

2012

■ Cash dividends per share

2013

2014

2015

0

Total return ratio

91Consolidated Balance Sheets
MARUI GROUP CO., LTD. and Its Consolidated Subsidiaries
As of March 31, 2014 and 2015

Millions of yen

AssetsCurrent assets:
Cash and deposits (Notes 5 and 20)
Notes and accounts receivable–trade (Note 5)
Accounts receivable–installment (Notes 3 and 5)
Operating loans (Notes 4 and 5)
Allowance for doubtful accounts (Note 5)Inventories
Deferred tax assets (Note 10)
Other
Total current assets
Property and equipment (Note 12):Land
Buildings and structures
Construction in progress
Other
Accumulated depreciation
Property and equipment, net
Investments and other assets:
Investment securities (Notes 5 and 6)
Investments in unconsolidated subsidiaries and affiliates
Intangible assets
Leasehold and other deposits (Note 5)
Deferred tax assets (Note 10)
Other
Total investments and other assets
Total assets
Liabilities
Current liabilities:
Accounts payable–trade (Note 5)
Short-term loans payable and current portion of long-term loans payable (Notes 5 and 9)
Current portion of bonds payable (Notes 5 and 9)
Commercial papers (Notes 5 and 9)
Income taxes payable (Notes 5 and 10)
Provision for bonuses
Provision for point card certificates
Provision for loss on redemption of gift certificates
Other
Total current liabilities
Non-current liabilities:
Bonds payable (Notes 5 and 9)
Long-term loans payable (Notes 5, 7, and 9)
Deferred tax liabilities (Note 10)
Provision for loss on interest repayment
Provision for loss on guarantees
Asset retirement obligations (Note 11)
Other
Total non-current liabilities
Total liabilities
Contingent liabilities (Note 13)
Net assets (Note 14)
Shareholders’ equity:
Capital stock   Authorized: 1,400,000,000 shares of common stock   Issued:	318,660,417 shares as of March 31, 2014, and278,660,417 shares as of March 31, 2015
Capital surplus
Retained earnings
Treasury stock (Note 25)  44,901,353 shares as of March 31, 2014, and 15,588,364 shares as of March 31, 2015
Total shareholders’ equity
Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Total accumulated other comprehensive income
Subscription rights to shares (Note 21)
Minority interests
Total net assets
Total liabilities and net assets
The accompanying notes are an integral part of these consolidated financial statements.

92

Thousands of
U.S. dollars (Note 1)

2014

2015

2015

¥ 30,064
6,323
213,466
125,215(7,440)337,565
19,285
9,122
18,503
414,542¥ 31,240
6,453
227,121
128,030(8,110)353,495
16,834
6,444
18,738426,753$ 260,333
53,775
1,892,675
1,066,916(67,583)
2,945,791
140,283
53,700156,150
3,556,275

99,402
256,435
162
36,964(217,900)
175,064

99,665
256,707488
35,146(219,313)
172,694

830,541
2,139,225
4,066
292,883(1,827,608)
1,439,116

23,672
672
6,625
37,7353,285
2,420
74,411¥664,019

24,389772
6,237
35,824
6,348
2,606
76,178¥675,627

203,241
6,433
51,975298,533
52,90021,716
634,816$5,630,225¥ 29,975
71,32420,00012,000
2,211
4,016
2,813
150
27,250169,740¥ 27,002
56,83917,00010,000
3,340
3,763
4,590
153
28,593
151,281$ 225,016
473,658
141,666
83,333
27,83331,35838,2501,275
238,275
1,260,675

82,00079,500
1,214
6,870
123
536
8,144
178,389
348,130

85,000109,000
1,516
12,652
140
548
8,232
217,090368,371

708,333
908,333
12,633
105,433
1,166
4,566
68,6001,809,083
3,069,758

35,92035,920299,333

91,307236,274

91,307
197,875

760,891
1,648,958(53,832)
309,669(19,290)
305,813(160,750)
2,548,441

5,776
5,776
39
402
315,889¥664,019

982
982
39
420
307,255¥675,627

8,183
8,183
325
3,500
2,560,458$5,630,225

Consolidated Statements of Income / Consolidated Statements of Comprehensive Income
MARUI GROUP CO., LTD. and Its Consolidated Subsidiaries
For the fiscal years ended March 31, 2014 and 2015

Millions of yen

Consolidated Statements of Income

Thousands of
U.S. dollars (Note 1)

2014

2015

2015

Total operating revenues (Note 12)
Cost of sales (Notes 12 and 15)¥416,460¥404,947$3,374,558

260,733

246,8022,056,683

Gross profit

155,726

158,144

1,317,866

Selling, general and administrative expenses (Note 16)

128,579

130,102

1,084,183

Operating income

27,14628,042

233,683

125

110

916

Non-operating income (expenses):
Interest income
Dividend income
Gain on bad debt recovered
Gain on donation of property and equipment

417

446

3,716

1,112

1,275

10,625

726

194

1,616

–

12,094

100,783

Interest expenses(1,828)(1,870)(15,583)

Loss on retirement of property and equipment (Note 17)(1,381)(1,097)(9,141)

Impairment loss (Note 18)–(1,859)(15,491)

Loss on interest repayment

–

(390)

(3,250)

Provision for loss on interest repayment–(12,652)(105,433)

Gain on sale of investment securities

Loss on closing of stores

(162)

–

–

Other, net

(78)

(291)

(2,425)(1,069)(4,041)(33,675)

26,07624,001200,008

Income taxes–current

3,331

6,193

51,608

Income taxes–deferred

7,314

1,745

14,541

10,646

7,938

66,15015,43016,062

133,850

Income before income taxes and minority interests
Income taxes (Note 10):

Income before minority interests
Minority interests in income
Net income

20

25

208

¥ 15,409¥ 16,036$  133,633

2014

2015

Yen

Per share data (Note 24)
Net income per share:
Basic
DilutedCash dividends
Net assets per share

¥

56.29

¥

U.S. dollars (Note 1)
2015

58.87

$0.49

56.29

58.86

0.49

18.00

19.00

0.15

1,152.28

1,166.20

9.71

The accompanying notes are an integral part of these consolidated financial statements.
Millions of yen

Thousands of
U.S. dollars (Note 1)

Consolidated Statements of Comprehensive Income

2014

2015

Income before minority interests
Other comprehensive income (Note 19):

¥15,430¥16,062$133,850

Valuation difference on available-for-sale securities

1,032(4,794)(39,950)

Total other comprehensive income

1,032(4,794)(39,950)¥16,462¥11,268$ 93,900

Owners of parent¥16,441¥11,242$93,683

Minority interests

20

25

208

Comprehensive income

2015

Comprehensive income attributable to:

The accompanying notes are an integral part of these consolidated financial statements.

93Consolidated Statements of Changes in Net Assets
MARUI GROUP CO., LTD. and Its Consolidated Subsidiaries
For the fiscal years ended March 31, 2014 and 2015

Millions of yen
Accumulated othercomprehensive income

Shareholders’ equity

Capitalstock

Balance as of April 1, 2013
Changes of items during period:
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Transfer of loss on disposal   of treasury stock
Other
Net changes of items other   than shareholders’ equity
Total changes of items
during period
Balance as of April 1, 2014
Changes of items during period:
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Transfer from retained   earnings to capital surplus
Net changes of items other   than shareholders’ equity
Total changes of items
during period
Balance as of March 31, 2015

CapitalsurplusRetainedearnings

Treasury
stock

Total

¥35,920 ¥ 91,307 ¥225,554 ¥(53,889) ¥298,893(4,653)
15,409
(2)
59

(35)
35

(15,002)43
49,50049,507

Minority
interests

Total net
assets¥ 4,744¥25¥389¥304,051(4,653)
15,409
(2)
24

–
(0)

–
(0)

–
–
10,72056
10,776¥35,920 ¥ 91,307 ¥236,274 ¥(53,832) ¥309,669(6)(49,500)¥ 4,744

Total

Subscription
rights toshares(4,653)
15,409
(2)
24

(35)
(0)

(4,927)
16,036

Valuationdifference
on availablefor-salesecurities

1,032

1,032

14

13

1,060

1,032
¥ 5,776

1,032¥ 5,776

14
¥39

13
¥402

11,837¥315,889(4,927)
16,036(15,002)36–(4,927)
16,036(15,002)
36
–

–

–

(49,507)–– (38,398) 34,541(3,856)¥35,920 ¥ 91,307 ¥197,875 ¥(19,290) ¥305,813(4,794)(4,794)0

17(4,776)(4,794)¥ 982(4,794)
¥ 982

0
¥39

17
¥420

(8,633)¥307,255

The accompanying notes are an integral part of these consolidated financial statements.
Thousands of U.S. dollars (Note 1)
Accumulated othercomprehensive income

Shareholders’ equity

Capitalstock

Balance as of April 1, 2014
Changes of items during period:
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Retirement of treasury stock
Transfer from retained   earnings to capital surplus
Net changes of items other   than shareholders’ equity
Total changes of items
during period
Balance as of March 31, 201594

CapitalsurplusRetainedearnings

Treasury
stock

Total

$299,333 $ 760,891 $1,968,950 $(448,600) $2,580,575(41,058)
133,633(125,016)
358
412,500(50)(412,500)
412,558(412,558)

Valuationdifference
on availablefor-salesecurities$ 48,133

Total

Subscription
rights tosharesMinority
interests

Total net
assets$ 48,133$325$3,350$2,632,408(41,058)
133,633(125,016)
300–(41,058)
133,633(125,016)
300
–

–

–

–
– (319,983) 287,841(32,133)$299,333 $ 760,891 $1,648,958 $(160,750) $2,548,441(39,950)(39,950)

0

141(39,800)(39,950)$ 8,183(39,950)$ 8,183

0
$325

141
$3,500(71,941)$2,560,458

Consolidated Statements of Cash FlowsMARUI GROUP CO., LTD. and Its Consolidated Subsidiaries
For the fiscal years ended March 31, 2014 and 2015

Millions of yen

Thousands of
U.S. dollars (Note 1)

2014

2015

2015

¥ 26,076
9,988
1,094
(830)
(4,288)
399
(542)
1,828
848
0
–
(133)
(42,278)(1,475)
103
1,766
2,049

¥ 24,001
10,296
1,777
670
5,781
(253)
(556)
1,870
604
(12,094)
1,859
(129)
(13,655)(2,815)
1,964(2,973)980$ 200,008
85,80014,808
5,583
48,175(2,108)(4,633)
15,583
5,033(100,783)
15,491(1,075)(113,791)(23,458)
16,366(24,775)
8,166

Subtotal(5,393)

17,328144,400

Interest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes refund

441(1,818)(2,710)253

475(1,906)(3,721)
135

3,958(15,883)(31,008)
1,125

Net cash provided by (used in) operating activities(9,227)

12,310102,583(9,439)
(99)
12
(511)
3,383
(137)

(10,874)(17,931)
22,684
(70)
2,165
159

(90,616)(149,425)
189,033(583)
18,041
1,325

Cash flows from operating activities:
Income before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in provision for point card certificates
Increase (decrease) in provision for allowance for doubtful accounts
Increase (decrease) in provision for loss on interest repayment
Increase (decrease) in provision for bonuses
Interest and dividend income
Interest expenses
Loss (gain) on retirement of property and equipment
Loss (gain) on sale of investment securities
Impairment loss
Decrease (increase) in notes and accounts receivable–trade
Decrease (increase) in accounts receivable–installment
Decrease (increase) in operating loans
Decrease (increase) in inventories
Increase (decrease) in accounts payable–trade
Other, net

Cash flows from investing activities:
Purchase of property and equipment
Purchase of investment securities
Proceeds from sale of investment securities
Payments for leasehold and other deposits
Proceeds from collection of leasehold and other deposits
Other, net
Net cash provided by (used in) investing activities(6,791)(3,867)(32,225)

Cash flows from financing activities:
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Net increase (decrease) in commercial papers
Purchase of treasury stock
Cash dividends paid (Note 14)
Other, net(30,937)
25,00019,902–7,000(2)(4,653)(167)(29,985)
45,00019,897(20,000)(2,000)(15,016)(4,927)(234)(249,875)
375,000
165,808(166,666)(16,666)(125,133)(41,058)(1,950)Net cash provided by (used in) financing activities

16,141(7,267)(60,558)

Net increase (decrease) in cash and cash equivalents

122

1,176

9,800

29,94030,053

250,441

Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents resulting fromchange of scope of consolidation
Cash and cash equivalents at end of period (Note 20)

(10)

–

–

¥ 30,053¥ 31,229$ 260,241

The accompanying notes are an integral part of these consolidated financial statements.

95

Notes to Consolidated Financial Statements
MARUI GROUP CO., LTD. and Its Consolidated Subsidiaries
As of and for the fiscal years ended March 31, 2014 and 2015

1. BASIS OF PRESENTATION
The accompanying consolidated financial statements of MARUI GROUP CO., LTD. (“the Company”) and its consolidated subsidiaries (collectively, “the Group”) have been prepared in accordance with the provisions set forth in the Financial Instruments
and Exchange Act of Japan and its related accounting regulations as well as in conformity with accounting principles generally
accepted in Japan, which are different in certain respects as to application and disclosure requirements of International
Financial Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications and rearrangements have been made to theconsolidated financial statements issued domestically in order to present them in a form that is more familiar to readers outside Japan. In addition, certain reclassifications have been made in the 2014 consolidated financial statements to conform tothe classifications used in 2015.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which the Company isincorporated and operates.
As permitted by the regulations under the Financial Instruments and Exchange Act of Japan, amounts of less than one
million yen have been omitted. As a result, the totals shown in the accompanying consolidated financial statements inJapanese yen do not necessarily agree with the sums of the individual amounts.
The U.S. dollar amounts shown in the accompanying consolidated financial statements and notes thereto were translated
from the presented Japanese yen amounts into U.S. dollar amounts at the rate of ¥120 = $1, the approximate rate of exchange
at March 31, 2015, and were then rounded down to the nearest thousand. As a result, the totals shown in the accompanying
consolidated financial statements in U.S. dollars do not necessarily agree with the sums of the individual amounts. This translation of Japanese yen amounts into U.S. dollar amounts is included solely for the convenience of readers outside Japan. Suchtranslation should not be construed as a representation that Japanese yen could be converted into U.S. dollars at that or any
other rate.

2. SIGNIFICANT ACCOUNTING POLICIES(1) Principles of consolidation and accounting for investments in unconsolidated subsidiaries and affiliates
The consolidated financial statements as of and for the fiscal year ended March 31, 2015, include the accounts of theCompany and its nine (ten in 2014) significant subsidiaries.
Under the control or influence concept, those companies in which the Company, either directly or indirectly, is able toexercise control over operations are consolidated, and those companies over which the Company has the ability to exercise
significant influence are accounted for using the equity method. For the fiscal years ended March 31, 2014 and 2015, there
was no subsidiary or affiliate accounted for using the equity method. Investments in the remaining unconsolidated subsidiaries
and affiliates are stated at cost. If the equity method of accounting was applied to the investments in these companies, theeffect on the accompanying consolidated financial statements would not be material.
All significant intercompany balances and transactions have been eliminated in consolidation.
The fiscal year-end of all consolidated subsidiaries is March 31, the same as that of the Company.

(2) Foreign currency translation
All monetary assets and liabilities denominated in foreign currencies are translated into Japanese yen at the exchange rates
prevailing at the consolidated balance sheet dates. All revenues and expenses associated with foreign currencies are translated into Japanese yen at the exchange rates prevailing when such transactions were made. The resulting exchange gains orlosses are credited or charged to income.

96

(3) Cash and cash equivalents
In preparing the consolidated statements of cash flows, the Group considers cash on hand, readily available deposits, andhighly liquid short-term investments with maturities of three months or less when purchased that are exposed to an insignificant risk of changes in value to be cash and cash equivalents.

(4) Investment securities
Investment securities held by the Group are all classified as available-for-sale securities.
Available-for-sale securities with a determinable market value are stated at fair value based on the market value at thebalance sheet date, and unrealized gains or losses, net of applicable income taxes, are reported as a separate componentof net assets. Cost of securities sold is computed based on the moving-average method. Available-for-sale securities withoutad­ eterminable market value are stated at cost determined by the moving-average method.
Investments in unconsolidated subsidiaries and affiliates are stated at cost determined by the moving-average method.

(5) Inventories
Inventories are measured at the lower of cost determined by the monthly weighted-average method or net selling value.

(6) Depreciation and amortization
Property and equipment (excluding leased assets) are depreciated by the straight-line method.
Intangible assets are amortized by the straight-line method. Capitalized computer software costs for internal use areamortized by the straight-line method over the estimated useful lives (within five years).
For finance leases which do not transfer ownership of the leased assets to the lessee, leased assets are depreciatedby the straight-line method over the lease terms with no residual value.

(7) Allowance for doubtful accounts
The allowance for doubtful accounts is stated at the amount determined based on the historical experience of bad debt withrespect to ordinary receivables (“general reserve”), plus an estimate of uncollectible amounts determined by reference tospecific doubtful receivables of customers experiencing financial difficulties (“specific reserve”).

(8) Provision for bonuses
The provision for bonuses is accrued at the fiscal year-end to which such bonuses are attributable.

(9) Provision for point card certificates
Credit points are awarded to customers when they make purchases using the Group’s member card and, upon request,
the Company will issue gift certificates or allows customers to use their accumulated credit points for their payment.
The provision for point card certificates is accrued to the estimated amount required based on the balance of credit
points awarded to card members outstanding at the fiscal year-end.

(10) Provision for loss on redemption of gift certificates
The monetary value of gift certificates and other certificates that have not been redeemed for a set period of time after issuanceis recognized as income. However, some gift certificates and other certificates can be redeemed after the recognition of income.
The provision for loss on redemption of gift certificates is provided at the estimated amount to be redeemed in the future
based on historical experience.

97

(11) Provision for loss on interest repayment
The provision for loss on interest repayment is provided to the estimated amount of repayment claims on consumer loaninterests at the fiscal year-end.

(12) Provision for loss on guarantees
The provision for loss on guarantees is provided at the estimated amount of loss arising from the Group’s guarantee obligationsof customers’ liabilities in relation to loans to individuals from financial institutions with which the Group has guarantee service
arrangements.

(13) Basis for revenue recognition
The charges for installment sales and interest income on consumer loans are recognized on an accrual basis based on theremaining loan balances.

(14) Hedge accounting
The Group utilizes interest rate swaps to mitigate the fluctuation risk of interests on loans payable.
The Group applies the special accounting treatment for interest rate swaps as all requirements for this treatment are
fulfilled. The Group omits the evaluation of hedge effectiveness for interest rate swaps under the special accounting
treatment.

(15) Consumption taxes
National and local consumption taxes are accounted for by the tax-excluded method. Non-deductible consumption tax andother taxes imposed on fixed assets are recorded as expenses as incurred.

3. ACCOUNTS RECEIVABLE–INSTALLMENT
The following balances for lump sums receivable and revolving receivable were securitized and are therefore excluded fromthe consolidated balance sheets as of March 31, 2014 and 2015:
Millions of yen
2014

2015

Thousands of
U.S. dollars (Note 1)
2015

Card shopping:
Lump sums receivable
Revolving receivable

98¥46,000¥53,000$441,666–

13,526

112,716

4. LOAN COMMITMENTS
Certain consolidated subsidiaries that operate in the Credit Card Services segment provide consumer loan services to customers.
The unused balance of loans contingent with the loan commitments was as follows:
Millions of yen

Total loan limits

Thousands of
U.S. dollars (Note 1)

2014

2015

2015

¥989,565¥1,081,117$9,009,308

Amount executed as loans

125,215

128,030

1,066,916

Unused balance¥864,349¥  953,086$7,942,383

Under the provisions of the loan service contract, the Group is able to decline a loan request or decrease a loan limit whena customer’s financial conditions or other circumstances change. Thus, the total unused balance will not necessarily be executed as loans.

5. FINANCIAL INSTRUMENTS(1) Status of financial instruments(a) Policy on financial instruments
The Group raises necessary funds for business operations through bank loans and corporate bond issuance. Temporary surplus funds are invested in highly safe short-term deposits. Derivative transactions are utilized to avoid the interest rate fluctuation risk on loans. The Group does not use derivative transactions for speculative purposes.

(b) Financial instruments, their risks, and the risk management system
Accounts receivable–installment and operating loans are exposed to the credit risk of customers. In accordance with theinternal risk management rules, the Group mitigates such risk by monitoring and evaluating the credit status of each customer
by means of third-party personal credit information agencies and the Group’s own credit monitoring system.
Investment securities primarily consist of shares issued by business partners and are exposed to both credit risk andmarket risk. The Group mitigates such risks by regularly monitoring the share price and the financial condition of the issuers.
Leasehold and other deposits consist of security deposits to rent properties for stores.
Accounts payable–trade is settled in the short term.
Long-term loans payable with a floating interest rate is exposed to interest rate fluctuation risk. The Group utilizes interest
rate swaps to avoid such risk by fixing the future interest rate.

99

(2) Estimated fair value of financial instruments
Carrying value, fair value, and the difference between them as of March 31, 2014 and 2015, are summarized below. Financial
instruments for which the fair value is difficult to estimate are excluded from the following table (See Note 2 below).
Millions of yen
2014(1) Cash and deposits

Carrying value

Fair value

Difference¥ 30,064¥ 30,064

¥

6,323

6,323

(2) Notes and accounts receivable–trade(3) Accounts receivable–installment

Carrying value

Fair value

Difference–¥ 31,240¥ 31,240

¥

–

6,453

6,453

–

249,151

27,227

16,968

213,466
208,730(5,198)231,321

22,591

125,215

221,923
128,030(2,273)   Allowance for doubtful accounts *2–

227,121(4,736)   Allowance for doubtful accounts *1(4) Operating loans

2015(2,231)

122,942

136,298

13,355

125,798

142,766  Available-for-sale securities

23,430(6) Leasehold and other deposits

11,32923,430–24,152

24,152–

11,049

(280)

9,493

9,312

(180)

Assets, total(1) Accounts payable–trade(2) S hort-term loans payable and current
portion of long-term loans payable¥402,821¥438,488¥35,666¥419,062¥463,077¥44,015¥ 29,975¥ 29,975¥–¥ 27,002¥ 27,002¥(5) Investment securities:–

71,324

71,324–56,83956,839–(3) Current portion of bonds payable

20,00020,000–17,00017,000–(4) Commercial papers

12,00012,000–10,00010,000–(5) Income taxes payable

2,211

2,211

–

3,340

3,340

–

(6) Bonds payable

82,00083,0891,089

85,00085,860860(7) Long-term loans payable

79,50079,438(61)

109,000

109,046

46

Liabilities, total¥297,011¥298,038¥ 1,027¥308,181¥309,089¥

907

Derivative transactions

¥

¥

¥

¥

¥

¥

–

–

–

–

*1 The amount presents the total of general reserve and specific reserve for accounts receivable–installment.
*2 The amount presents the total of general reserve and specific reserve for operating loans.

100

–

–

Thousands of U.S. dollars (Note 1)
2015
Carrying value

Fair value$  260,333$  260,333

53,77553,775–2,076,258

226,891

1,048,316

1,189,716

141,400  Available-for-sale securities

201,266

201,266–(6) Leasehold and other deposits

79,10877,600(1,500)Assets, total$3,492,183$3,858,975$366,791(1) Accounts payable–trade$(1) Cash and deposits(2) Notes and accounts receivable–trade(3) Accounts receivable–installment–

1,892,675(43,316)   Allowance for doubtful accounts

1,849,358(4) Operating loans

Difference$

1,066,916(18,591)   Allowance for doubtful accounts(5) Investment securities:$ 225,016$ 225,016(2) Short-term loans payable and current portion of long-term loans payable

473,658

473,658–(3) Current portion of bonds payable

141,666

141,666–(4) Commercial papers

83,333

83,333––(5) Income taxes payable

27,833

27,833–(6) Bonds payable

708,333

715,500

7,166

908,333

908,716

Liabilities, total$2,568,175$2,575,741

$

7,558

Derivative transactions

$

$

$

–

(7) Long-term loans payable

–

–

383

Note 1.	Calculation method for fair value of financial instruments and information on securities and derivative transactions
Assets:		(1) Cash and deposits and (2) Notes and accounts receivable–trade
The fair value approximates their carrying value because of their short maturities.
		(3) Accounts receivable–installment and (4) Operating loans
The fair value is determined as their present value by discounting, using the risk-free rate, their future cash flows
adjusted for their credit risk identified in the credit control process. With regard to bad receivables and loans,allowance for doubtful accounts is estimated based on the present value of their estimated future cash flows. The
fair value approximates the amount of carrying value less allowance for doubtful accounts. Thus, the amount ofcarrying value less allowance for doubtful accounts is used as fair value.
		(5) Investment securities
The fair value is based on quotes on an exchange.
		(6) Leasehold and other deposits
The fair value is determined as their present value by discounting future cash flows at the risk-free rate adjusted for
credit risk premium. The amount includes the current portion of leasehold and other deposits.

101Liabilities:		(1) Accounts payable–trade, (2) Short-term loans payable and current portion of long-term loans payable,(3) Current portion of bonds payable, (4) Commercial papers, and (5) Income taxes payable		  The fair value approximates their carrying value because of their short maturities.
		(6) Bonds payable
The fair value is based on the present value calculated by discounting the sum of principal and interests using aninterest rate, for which credit risk and redemption periods are taken into account.
		(7) Long-term loans payable
The carrying value of long-term loans payable with a floating interest rate approximates its fair value since the interest rate reflects the market rate in the short term. Thus, carrying value is used as its fair value. The fair value of longterm loans payable hedged by interest rate swaps under special accounting treatment is calculated by discounting
the sum of principal and interests accounted for together with interest rate swaps using a reasonably estimatedinterest rate applied to similar borrowings. The fair value of long-term loans payable with fixed interest rates iscalculated by discounting the sum of principal and interests using an interest rate that would be applied to similar
new borrowings.
		 Derivative transactions
		 See Note 7, “DERIVATIVE TRANSACTIONS,” for details.
Note 2. Financial instruments whose fair value is extremely difficult to determine
Millions of yen

Unlisted stocks
Part of security deposits

2014

2015

¥

¥

782
28,058

Thousands of
U.S. dollars (Note 1)
2015

877

$  7,308

27,915

232,625

Unlisted stocks are not included in (5) Investment securities in the table above, as there were no market prices available
and it is extremely difficult to determine the fair value. Similarly, part of security deposits is not included in (6) Leasehold andother deposits.

102

Note 3. Redemption schedule for monetary claims and securities with maturities
Millions of yen
2014
Due in one year
or less

Cash and deposits

Due after one year
through five years¥ 30,064¥

Due after five years
through ten years

–

¥

–

Due after ten years

¥

–

6,323

–

–

–

Accounts receivable–installment

116,084

70,10417,003

10,273Operating loans

60,977

63,383776

77Leasehold and other deposits

1,574

4,560

3,588

1,606

¥215,024¥138,048¥21,368¥11,958

Notes and accounts receivable–trade

Total

Millions of yen
2015
Due in one year
or less

Cash and deposits

Due after one year
through five years¥ 31,240¥

Due after five years
through ten years

–

¥

–

Due after ten years

¥

–

6,453

–

–

–

Accounts receivable–installment

129,841

66,16019,638

11,481

Operating loans

62,46665,005486

72

Leasehold and other deposits

1,515

3,654

2,843

1,480

¥231,516¥134,820¥22,968¥13,034

Notes and accounts receivable–trade

Total

Thousands of U.S. dollars (Note 1)
2015

Cash and deposits
Notes and accounts receivable–trade
Accounts receivable–installment
Operating loans
Leasehold and other deposits
Total

Due in one year
or less

Due after one year
through five years$ 260,333$–

Due after five years
through ten years$–

Due after ten years$–

53,775–––

1,082,008

551,333

163,650

95,675

520,550

541,708

4,050

600

12,62530,45023,691

12,333$1,929,300$1,123,500$191,400$108,616

See Note 9, “SHORT-TERM LOANS PAYABLE AND LONG-TERM DEBT,” for the schedule of aggregate annual maturities oflong-term loans payable and long-term debt.

103

6. INVESTMENT SECURITIES(1) Information on available-for-sale securities as of March 31, 2014 and 2015, is as follows:
Millions of yen
2014
Carrying value

Acquisition cost

¥20,815¥11,524

20,815

11,524

Stocks2,615

Subtotal

2,615¥23,430

2015
Difference

Carrying value

Acquisition cost

Difference¥ 9,291¥18,783¥16,468¥2,314

9,291

18,783

16,468

2,314

3,920

(1,305)

5,369

6,319

(950)

3,920

(1,305)

5,369

6,319

(950)

¥15,444¥ 7,986¥24,152¥22,787¥1,364

Carrying value exceedingacquisition cost:
StocksSubtotal
Carrying value not exceedingacquisition cost:

Total

Thousands of U.S. dollars (Note 1)
2015
Carrying value

Acquisition cost

Difference$156,525$137,233$19,283

156,525

137,233

19,283

Stocks44,741

52,658(7,916)

Subtotal

44,741

52,658(7,916)$201,266$189,891$11,366

Carrying value exceedingacquisition cost:
StocksSubtotal
Carrying value not exceedingacquisition cost:

Total

Unlisted stocks in the amount of ¥241 million and ¥237 million ($1,975 thousand) as of March 31, 2014 and 2015, are notincluded in the table above since their market price is not readily available and it is extremely difficult to determine their fair value.

104(2) Information on sale of available-for-sale securities for the fiscal years ended March 31, 2014 and 2015, is as follows:
Millions of yen
2014
Proceeds
from sales

Stocks
Total

2015

Gains

LossesProceeds
from sales

Gains

Losses

¥12

¥–

¥0

¥22,684¥12,094

¥–

¥12

¥–

¥0

¥22,684¥12,094¥–

Thousands of U.S. dollars (Note 1)
2015

Stocks
Total

Proceeds
from sales

Gains$189,033$100,783$–$189,033$100,783$–

Losses(3) When the fair value of investment securities declines by 30% to 50%, the Group recognizes an impairment loss
after comprehensively evaluating the recoverability of the market price. No impairment loss was recognized forthe fiscal year ended March 31, 2014. For the fiscal year ended March 31, 2015, the Group recognized an
impairment loss on available-for-sale securities but omitted its disclosure since the amount was immaterial.

7. DERIVATIVE TRANSACTIONS
For the fiscal years ended March 31, 2014 and 2015, the Group’s derivative transactions were limited to interest rate swaps
that qualified for hedge accounting and met the requirements for the special accounting treatment for interest rate swaps as
described below. There were no derivative transactions for which hedge accounting was not applied.
Hedge accounting method:
Special treatment for interest rate swaps
Type of derivative transactions:Interest rate swaps, receive floating / pay fixed
Hedged item:
Long-term loans payable
Millions of yen
2014
Contract amountTotal

Due after one year

¥17,000¥17,000

Thousands of U.S. dollars (Note 1)

2015

2015

Contract amount
Fair value

*

Total

Due after one year

¥17,000¥17,000

Contract amount
Fair value

*

Total

Due after one year

$141,666$141,666

Fair value** Interest rate swaps under the special accounting treatment are accounted for as an integral component of the long-term loans payable designated as hedged items.
Thus, their fair value is included in that of long-term loans payable.

1058. LEASES(As a Lessee)
The Group capitalizes leased assets under finance leases that do not transfer ownership. These assets are mainly comprisedof buildings and properties in connection with the Retailing and Store Operation segment and software.
The future minimum lease payments under non-cancellable operating leases were as follows:
Millions of yen

Within one year

2014

2015

¥ 3,976¥ 3,960

Thousands of
U.S. dollars (Note 1)2015$ 33,000

Over one year

22,385

18,469

153,908

Total¥26,361¥22,429$186,908(As a Lessor)
The future minimum lease receipts under non-cancellable operating leases were as follows:
Millions of yen

Within one year

2014

2015

¥ 2,550¥ 3,452

Thousands of
U.S. dollars (Note 1)2015$ 28,766

Over one year

10,044

8,859

73,825

Total¥12,594¥12,311$102,591

9. SHORT-TERM LOANS PAYABLE AND LONG-TERM DEBT
Short-term loans payable and current portion of long-term loans payable as of March 31, 2014 and 2015, consisted of thefollowing:
Millions of yen

Short-term loans payable

2014

2015

¥38,324¥39,339

Thousands of
U.S. dollars (Note 1)
2015$327,825

Current portion of long-term loans payable

33,00017,500145,833

Total¥71,324¥56,839$473,658

Annual weighted-average interest rates of short-term loans payable were 0.46% and 0.42% and those of current portionof long-term loans payable were 0.83% and 0.88% for the fiscal years ended March 31, 2014 and 2015, respectively.
Annual weighted-average interest rates of commercial papers, due within a year, were 0.09% and 0.10% for the fiscal
years ended March 31, 2014 and 2015, respectively.

106

Long-term debt as of March 31, 2014 and 2015, consisted of the following:
Millions of yen

Thousands of
U.S. dollars (Note 1)

2014

2015

2015

¥ 79,500¥109,000$  908,333

13th series unsecured 1.51% corporate bond, due 2017

10,00010,00083,33316th series unsecured 1.01% corporate bond, due 2015

12,00012,000100,000

17th series unsecured 0.80% corporate bond, due 2014

20,000––18th series unsecured 0.97% corporate bond, due 2017

10,00010,00083,333

0.50% long-term loans from banks and others due through 2027

19th series unsecured 0.58% corporate bond, due 2015

5,000

5,000

41,66620th series unsecured 0.79% corporate bond, due 2017

10,00010,00083,33321st series unsecured 0.57% corporate bond, due 2017

10,00010,00083,33322nd series unsecured 0.85% corporate bond, due 2019

5,000

5,000

41,66623rd series unsecured 0.342% corporate bond, due 2016

10,00010,00083,33324th series unsecured 0.582% corporate bond, due 2018

10,00010,00083,33325th series unsecured 0.344% corporate bond, due 2019–10,00083,333
83,333–

10,000

2,273

2,047

17,058

183,773

213,047

1,775,391

26th series unsecured 0.562% corporate bond, due 2021
Lease obligation

20,226

17,178143,150¥163,547¥195,869$1,632,241

Less: Current portion
Total

The aggregate annual maturities of long-term debt subsequent to March 31, 2015, are as follows:
Millions of yen

Thousands of U.S. dollars (Note 1)

Long-term loans
payableBonds payable

Lease obligation

Long-term loans
payableBonds payable

Lease obligation2016¥ 17,500¥ 17,000¥  178$  145,833$141,666$ 1,4832017

15,00030,000149

125,000

250,000

1,241

2018

10,00020,000149

83,333

166,666

1,241

2019

14,00010,000149

116,666

83,3331,2412020 and thereafter

70,00025,0001,422

583,333

208,333

11,850¥126,500¥102,000¥2,047$1,054,166$850,000$17,058

Year ending March 31

Total

107

10. DEFERRED TAX ACCOUNTING
Major components of deferred tax assets and deferred tax liabilities as of March 31, 2014 and 2015, were as follows:
Millions of yen

Thousands of
U.S. dollars (Note 1)

2014

2015

2015

Depreciation¥ 6,628¥ 6,339$ 52,825

Impairment loss

5,373

5,586

46,550

Provision for loss on interest repayment

2,548

4,478

37,316

Provision for point card certificates

1,043

1,624

13,533

Net operating loss carried forward

4,973

1,494

12,450Allowance for doubtful accounts

2,673

1,423

11,858Net unrealized loss on non-current assets

1,426

1,372

11,433

Provision for bonuses

1,484

1,324

11,033

Other

5,895

4,632

38,600Subtotal

32,04728,275

235,625

Deferred tax assets:

Valuation allowance(9,280)(7,684)(64,033)

Total deferred tax assets

22,767

20,590171,583

Reserve for special account for advanced depreciation of non-current assets

9,183

8,737

72,808Valuation difference on available-for-sale securities

2,207

380

3,166

182

197

1,641

Total deferred tax liabilities

11,572

9,315

77,625

Deferred tax assets, net¥11,194¥11,275$ 93,958

Deferred tax liabilities:

Other

Income taxes consist of corporation, inhabitants’ and enterprise taxes. Reconciliations between the statutory tax rate andthe effective tax rate reflected in the consolidated statements of income were as follows:
Statutory tax rate

2014

2015

38.0%

35.6%

Adjustments:
Permanent differences such as entertainment expenses, etc.

0.4

0.4

Permanent differences such as dividends

(0.2)

(0.3)

Change in valuation allowance

(2.4)

(4.7)

Inhabitants’ tax

0.5

0.6

Adjustments due to changes in tax rate

2.5

1.9

Other

2.0

(0.4)

40.8%

33.1%

Effective tax rate

In line with the promulgation on March 31, 2015, of the “Act for Partial Revision of the Income Tax Act, etc. (Act No. 9,2015)” and the “Act for Partial Revision of the Local Tax Act, etc. (Act No. 2, 2015),” the Group has changed the effective statutory tax rate to calculate deferred tax assets and deferred tax liabilities for the fiscal year ended March 31, 2015, from 35.6%
to 33.1% for temporary differences expected to be reversed in the fiscal year beginning on April 1, 2015, and to 32.3% for
those expected to be reversed in and after the fiscal year beginning on April 1, 2016.
As a result of this change, deferred tax assets decreased by ¥423 million ($3,525 thousand) and income taxes–deferredand valuation difference on available-for-sale securities increased by ¥463 million ($3,858 thousand) and ¥40 million ($333
thousand), respectively.

10811. ASSET RETIREMENT OBLIGATIONS(1) Asset retirement obligations recognized in the consolidated balance sheets
The Group’s asset retirement obligations mainly include the cost of restoring the store sites to their original condition under
the real estate lease contracts of stores. The Group calculated its asset retirement obligations by assuming the lease period as
the expected period of use and applying discount rates of 0.12% to 1.38%.
Asset retirement obligations as of March 31, 2014 and 2015, consisted of the following:
Millions of yen
2014

Thousands of
U.S. dollars (Note 1)

2015

2015

¥ 787

¥549

Increase due to acquisition of property and equipment

8

–

–

Increase due to change in estimate *1

9

87

725

Beginning balance$4,5754

216

Decrease due to fulfillment of obligation

(190)

(13)

(108)

Decrease due to change in estimate *2

(70)

–

–

–

9

75

¥ 549

¥635

$5,291

Adjustments due to passage of time

Other increase (decrease)Ending balance*1 The reasonable estimate of obligation became available for stores to be closed.
*2 The more-reasonable estimate became available; thus, the amount of obligation estimated at the time of acquisition of the respective assets was decreased.

(2) Asset retirement obligations other than those recognized in the consolidated balance sheets
While the Group estimates asset retirement obligations based on the real estate lease contracts of stores, it is not possible toreasonably estimate the cost of restoring the store sites to their original condition under the general lease contracts since theperiod of use is not clearly determined. Therefore, the Group does not recognize the asset retirement obligations for stores
other than those that are planning to be closed.

12. INVESTMENT AND RENTAL PROPERTY
Certain consolidated subsidiaries hold commercial properties, including land, for rental in the Tokyo metropolitan area andother areas. The net rental income in connection with these properties for the fiscal years ended March 31, 2014 and 2015,was ¥3,851 million and ¥3,824 million ($31,866 thousand), respectively. The rental income was included in net sales and theassociated rental expenses were included in cost of sales. The carrying value and the fair value of such assets were as follows:
Millions of yen

Thousands of
U.S. dollars (Note 1)

2014

2015

2015

¥31,800¥32,285

484

81

675

¥32,285¥32,367$269,725¥62,931¥66,959$557,991

Carrying value *1:
Beginning balance
Changes during the year
Ending balance
Fair value *2$269,041*1 Carrying value represents the amount on the consolidated balance sheets which is carried at the acquisition costs less the accumulated depreciation.
*2 Fair value is based on the appraised value provided by third-party real estate appraisers.

109

13. CONTINGENT LIABILITIESThe Group has commitments to guarantee customers’ liabilities in relation to personal loans to individuals from financial institutions with which the Group has guarantee service arrangements.
As of March 31, 2014 and 2015, the amounts of the Group’s guarantee obligations were ¥16,800 million and ¥19,327
million ($161,058 thousand), respectively.

14. NET ASSETS
Under the Companies Act of Japan (“the Act”), the entire amount paid for new shares is required to be designated as capitalstock. However, a company may, by a resolution of the Board of Directors, designate an amount not exceeding one-half of theprice of the new shares as additional paid-in capital, which is included in capital surplus. The legal earnings reserve is included
in retained earnings in the accompanying consolidated balance sheets.
The Act provides that an amount equal to at least 10% of the amount to be disbursed as distributions of capital surplus(other than additional paid-in capital) and retained earnings (other than legal earnings reserve) be transferred to additional
paid-in capital and the legal earnings reserve, respectively, until the total of additional paid-in capital and the legal earnings
reserve equals 25% of the capital stock account.
Such distributions can be made at any time by resolution of the shareholders’ meeting, or by resolution of the Board of
Directors if certain conditions are met.
Under the Act, additional paid-in capital and the legal earnings reserve may not be distributed as dividends; the Act allows
all additional paid-in capital and all legal earnings reserve to be transferred to other capital surplus and retained earnings,
respectively, which are potentially available for dividends.
The maximum amount that the Company can distribute as dividends is calculated based on the unconsolidated financial
statements of the Company in accordance with Japanese laws and regulations.
The following tables summarize the dividends paid for the fiscal years ended March 31, 2014 and 2015:
2014
Resolution

Class ofshare

Total amount of dividend(Millions of yen)

Dividend per share(Yen)

Annual general meeting ofshareholders held on June 26, 2013
Board of Directors’ meeting held on
November 7, 2013

Commonstock
Commonstock¥2,189

¥8

2,463

9

Record date

Effective date

March 31,
June 27,20132013
September 30, December 4,
2013
2013

2015

Resolution

Annual general meeting ofshareholders held on June 26, 2014
Board of Directors’ meeting held on
November 6, 2014

Class ofshare

Total amount of dividend

Dividend per share(Thousands of(Millions of
U.S. dollars)yen)(Note 1)(Yen)

(U.S. dollars)(Note 1)

$20,525¥9$0.07

20,5339

0.07

Common ¥2,463
stock
Common2,464
stock

Record date

Effective date

March 31,
June 27,2014
2014
September 30, December 4,
2014
2014

Dividends with a record date during the fiscal year ended March 31, 2015, but with an effective date subsequent to thefiscal year ended March 31, 2015, were as follows:
Total amount of dividend
Resolution

Class ofshare

(Thousands of(Millions of
U.S. dollars)yen)(Note 1)

Annual general meeting ofCommon ¥2,630
shareholders held on June 25, 2015 stock110

Dividend per share
Source(Yen)$21,916 Retained ¥10
earnings(U.S. dollars)(Note 1)

$0.08

Record date

Effective date

March 31,2015

June 26,2015

15. COST OF SALESFor the fiscal years ended March 31, 2014 and 2015, cost of sales included the revaluation loss on inventories in the amountsof ¥86 million and ¥43 million ($358 thousand), respectively.

16. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses for the fiscal years ended March 31, 2014 and 2015, were as follows:
Millions of yen

Thousands of
U.S. dollars (Note 1)

2014

2015

2015

¥ 14,849¥ 14,712$  122,600

Provision for point card certificates

2,813

4,590

38,250

Provision for allowance for doubtful accounts

6,361

7,748

64,566867––

33,30033,165276,375

Advertisement

Provision for loss on interest repayment
Salaries and allowances
Provision for bonuses

3,799

3,533

29,441

Rent

16,535

15,345

127,875

Depreciation and amortization

8,542

8,771

73,091

Other

41,50942,237

351,975¥128,579¥130,102$1,084,183

17. LOSS ON RETIREMENT OF PROPERTY AND EQUIPMENT
Loss on retirement of property and equipment for the fiscal years ended March 31, 2014 and 2015, consisted of the following:
Millions of yen

Buildings and structures
Furniture and fixtures

Thousands of
U.S. dollars (Note 1)

2014

2015

2015

¥  748¥  515$4,291

632

582

4,850

¥1,381¥1,097$9,141111

18. IMPAIRMENT LOSS
For the fiscal year ended March 31, 2014, no impairment loss was recognized. For the fiscal year ended March 31, 2015, theGroup recognized an impairment loss on the asset group as stated below.
Millions of yen

Thousands of
U.S. dollars (Note 1)¥1,787$14,891

Other

71

591

Total

¥1,859$15,491

Use

Location

Type of assets

Stores, etc.

Kyoto Marui

Buildings and structures

Kyoto, Kyoto City

The Group has grouped its fixed assets by either store or rental property, which are the minimum cash-generating units.
Carrying value of each asset group is written down to its respective recoverable amount and in doing so recognized an
impairment loss.
The Group estimated the recoverable amount of each asset group based on value in use or fair value less costs to sell. If
a store reports continuous operating losses, the Group evaluates that the value in use of the store is zero since positive cash
flows cannot be expected in the future. If a store is planned to be closed, the Group evaluates that the fair value less cost tosell is zero.

19. COMPREHENSIVE INCOME
Millions of yen
2014

Thousands of
U.S. dollars (Note 1)

2015

2015

¥1,543¥  5,473$  45,608

Reclassification adjustments

0(12,094)(100,783)

Before tax effect adjustment

1,544(6,621)(55,175)

Tax effect

(511)

1,827

15,225

Valuation difference on available-for-sale securities

1,032(4,794)(39,950)

Total other comprehensive income¥1,032¥ (4,794)$ (39,950)

Valuation difference on available-for-sale securities:
Amounts incurred for the year

20. CASH FLOW STATEMENTS
Reconciliations of cash and cash equivalents in the consolidated statements of cash flows to accounts and amounts in theaccompanying consolidated balance sheets as of March 31, 2014 and 2015, were as follows:
Millions of yen

Cash and deposits
Time deposits with maturity in excess of three months
Cash and cash equivalents

112

2014

2015

¥30,064¥31,240

Thousands of
U.S. dollars (Note 1)
2015$260,333

(11)

(11)

(91)

¥30,053¥31,229$260,24121. SUBSCRIPTION RIGHTS TO SHARESFor the fiscal years ended March 31, 2014 and 2015, the amounts of costs incurred for subscription rights to shares (“stock
options”) were ¥38 million and ¥36 million ($300 thousand), respectively, and were included in selling, general and administrative expenses.
The outline of stock options of the Company is as follows:
Date of resolution
Title and number of grantee
Type and number of shares to beissued upon exercise of stock options
Granted date
Vesting conditions
Eligible service period
Exercise period

2013

2014

2015

June 27, 2012
7 Directors and5 Executive Officersof the Company
Common stock
52,000 shares
August 3, 2012
No provision
No provision
From April 1, 2013 toMarch 31, 2023

June 26, 2013
7 Directors and5 Executive Officersof the Company
Common stock
38,400 shares
July 11, 2013
No provision
No provision
From April 1, 2014 toMarch 31, 2024

June 26, 2014
8 Directors and5 Executive Officersof the Company
Common stock
43,500 shares
July 11, 2014
No provision
No provision
From April 1, 2015 toMarch 31, 2025

The following table describes the scale and changes in stock options that existed during the fiscal year ended March 31,
2015. The number of stock options is translated into the number of shares.
Number of shares
2013

2014

2015

Before vested:
As of March 31, 2014

–

–

–

Granted

––43,500Forfeited–––

Vested––43,500

As of March 31, 2015

–

–

–

After vested:
As of March 31, 2014

2,600

38,400–

Vested––43,500Exercised–

36,400–Forfeited

–

–

–

2,600

2,000

43,500

As of March 31, 2015

Yen U.S. dollars (Note 1)

Exercise price

Yen U.S. dollars (Note 1)

Yen U.S. dollars (Note 1)¥  1$0.008¥    1$0.008¥  1

Average exercise price

–

–

874

7.28

–

$0.008–Fair value at granted date

485

4.04

1,007

8.39

844

7.03

113

The Black-Scholes option-pricing model is applied to estimate the fair value of stock options granted for the fiscal year
ended March 31, 2015, based on the following assumptions.
Expected volatility *1
35.050%
Expected holding period *2
5.7 years
Expected dividend *3¥18 ($0.15) per share
Risk-free rate *40.180%*1*2*3*4

It is estimated based on the share price over the period corresponding to the expected holding period.
It is estimated based on the assumption that stock options are exercised at the middle of the exercise period.
It is based on the dividends for the fiscal year ended March 31, 2014.
It is the average yield on government bonds for the period that corresponds to the remaining life of the stock option.

Since it is difficult to reasonably estimate the number of stock options that will expire in the future, the number of stock
options that were forfeited is shown as the number of vested options.

22. SEGMENT INFORMATION(1) Overview of reportable segments
The Group defines its reportable segments as a component of the Group for which separate financial information is available
and whose operating results are regularly evaluated by the Board of Directors to make decisions about how resources are to
be allocated among the Group and assess their performance.
The Group consists of the following three reportable segments identified by products and services: “Retailing and StoreOperation,” “Credit Card Services,” and “Retailing-Related Services.”
The Retailing and Store Operation segment engages in retailing operations of clothes and accessories and management ofcommercial property rental. The Credit Card Services segment engages in the credit card, the consumer loans, and the rental
guarantee businesses. The Retailing-Related Services segment engages in businesses such as store design, advertising, apparel
distribution, IT systems, total building management, and real estate rental.

114

(2) Basis of measurement for the amounts of segment net sales, segment income or loss, segment assets,
and other items
The accounting policies of each reportable segment are consistent with those disclosed in Note 2, “SIGNIFICANTACCOUNTING POLICIES.”
Segment income is measured on the basis of operating income. Intersegment sales and transfers are accounted for basedon the prevailing market price.
Millions of yen
2014
Retailing and StoreOperation

Reportable segment
Credit Card
Retailing-Related
Services
Services

Total

Adjustment *1

Consolidated *2

Operating revenues:¥322,342¥ 59,421¥34,695¥416,460

5,489

2,374

24,81332,678(32,678)–

Total¥327,832¥ 61,795¥59,509¥449,138¥(32,678)¥416,460

Segment income¥ 10,562¥ 15,634¥ 4,523¥ 30,721¥ (3,574)¥ 27,146

Segment assets¥242,160¥371,097¥65,717¥678,975¥(14,956)¥664,019

¥

¥

1,054

¥ 2,136

¥

¥

¥

1,450

2,015

Outside customers
Intersegment¥–¥416,460

Other items:
Depreciation and amortization
Increase in property and   equipment and intangible assets

6,524
8,530

9,714
11,996273(1,201)

9,988
10,795*1	Adjustment to segment income consists of intersegment elimination of ¥1,301 million and corporate expenses of ¥(4,876) million that are not allocated to eachreportable segment. Adjustment to segment assets mainly consists of intersegment elimination of ¥(217,051) million and corporate assets of ¥204,635 million,
which mainly present the Company’s loans in connection with the Group’s cash management system.
*2 Segment income is reconciled to operating income on the consolidated statements of income.
Millions of yen
2015
Retailing and StoreOperation

Reportable segment
Credit Card
Retailing-Related
Services
Services

Total

Adjustment *1

Consolidated *2

Operating revenues:
Outside customers
Intersegment
Total¥302,693¥ 68,436¥33,816¥404,947

4,918

2,186

22,33229,437¥(29,437)–¥404,947–¥307,611¥ 70,623¥56,149¥434,384¥(29,437)¥404,947

Segment income¥  8,074¥ 20,126¥ 3,333¥ 31,535¥ (3,492)¥ 28,042

Segment assets¥239,592¥385,466¥64,944¥690,003¥(14,376)¥675,627¥  6,976¥  1,223¥ 1,869¥ 10,070¥

226¥ 10,296

6,280

1,710

2,208

10,198

(412)

9,786

Other items:
Depreciation and amortization
Increase in property and   equipment and intangible assets

115

Thousands of U.S. dollars (Note 1)
2015
Retailing and StoreOperation

Reportable segment
Credit Card
Retailing-Related
Services
Services

Adjustment *1

Total

Consolidated *2

Operating revenues:$2,522,441$  570,300$281,800$3,374,558

40,983

18,216

186,100

245,308(245,308)

–

Total

$2,563,425$  588,525$467,908$3,619,866$(245,308)$3,374,558

Segment income$

67,283$  167,716$ 27,775$  262,791$ (29,100)$ 233,683

Segment assets$1,996,600$3,212,216$541,200$5,750,025$(119,800)$5,630,225$$

10,191$ 15,575$$$

14,25018,400Outside customers
Intersegment$–$3,374,558

Other items:
Depreciation and amortization
Increase in property and   equipment and intangible assets

58,13352,333

83,91684,983

1,883(3,433)85,80081,550*1	Adjustment to segment income consists of intersegment elimination of ¥1,602 million ($13,350 thousand) and corporate expenses of ¥(5,095) million ($(42,458)
thousand) that are not allocated to each reportable segment. Adjustment to segment assets mainly consists of intersegment elimination of ¥(224,929) million($(1,874,408) thousand) and corporate assets of ¥213,560 million ($1,779,666 thousand), which mainly present the Company’s loans in connection with the Group’s
cash management system.
*2	Segment income is reconciled to operating income on the consolidated statements of income.

Disclosures as to related information with regard to the concentration of products and service, location, and major customers are omitted since there is no relevant information to be disclosed.
For the fiscal year ended March 31, 2015, an impairment loss of ¥1,859 million ($15,491 thousand) was reported by the
Retailing and Store Operation segment.

23. RELATED PARTY INFORMATION
Related party information where directors and their close relatives substantially own a majority of the voting rights is as follows:
2014
Name of thecompany

Nakano Co., Ltd.

Seiwa Kogyo
Co., Ltd.

Location

Capital(Millions of yen)

Shinjuku,
Tokyo

¥10

Shinjuku,
Tokyo

10

BusinessRealestaterentalRealestaterentalVotingRelationshiprightsDirect Property
0.8% rental
Concurrent
position as
director
Direct Property
0.2% rental
Concurrent
position as
director

Transaction

Amount(Millions of yen)

Property
rental¥42

Property
rentalstores

44

Account name

Balance(Millions of yen)

Leasehold andother deposits
Other current
liabilities¥ 41

Leasehold andother deposits

191

1

The monetary amounts above do not include consumption taxes. Terms and conditions for rental agreements are determined similarly to those of third-party transactions.

116

2015
Name of thecompany

Nakano Co., Ltd.

Seiwa Kogyo
Co., Ltd.

Location

Capital(Millions of yen)

Business

Shinjuku,¥10 RealTokyo($83 thousand) estate(Note 1) rental
Shinjuku,
10 RealTokyo($83 thousand) estate(Note 1) rental

VotingRelationshiprightsDirect Property
0.9% rental
Concurrent
position as
director
Direct Property
0.5% rental
Concurrent
position as
director

Transaction

Property
rentalProperty
rentalstores

Amount(Millions of yen)Account name

¥42 Leasehold and($350 thousand) other deposits(Note 1) Other current
liabilities

Balance(Millions of yen)

¥ 41($341 thousand)1($8 thousand)

44 Leasehold and
191($366 thousand) other deposits ($1,591 thousand)(Note 1)

The monetary amounts above do not include consumption taxes. Terms and conditions for rental agreements are determined similarly to those of third-party transactions.

24. PER SHARE INFORMATION
Net income per share, both basic and diluted, for the fiscal years ended March 31, 2014 and 2015, are as follows:
Yen

U.S. dollars (Note 1)

2014

2015

Net income per share¥56.29¥58.87

2015

$0.49

Diluted net income per share

56.29

58.86

0.49

Thousands of shares

Weighted-average number of outstanding shares

2014

2015

273,760

272,430

2

48

Diluted shares:
Assumed exercise of stock options

Net income per share is computed based on the net income attributable to shareholders of common stock and theweighted-average number of outstanding shares.

11725. SUBSEQUENT EVENTAt the Board of Directors’ meeting held on May 14, 2015, the Company resolved to acquire its own shares based on Article
156 of the Companies Act of Japan (“the Act”), which is applied by the deemed replacement of terms pursuant to the provisions of Article 165 (3) of the Act.
The Group launched the medium-term management plan (fiscal year ended March 31, 2015 to fiscal year ending March
31, 2017) that defines the improvement of corporate value by implementing growth strategies and financial strategies. Under
the financial strategic plans, the Group has an objective to enhance its investments targeting future growth and stable return toshareholders by effectively applying free cash flows generated over the three-year period of the plan. To meet such an objective, the Company will acquire its own shares in an approximate total amount of ¥50,000 million ($416,666 thousand) over theduration of the plan in order to achieve the ROE target of 6% or more in the early stage and increase returns for shareholders
going forward. Therefore, following ¥15,000 million ($125,000 thousand) of the acquisition executed for the fiscal year ended
March 31, 2015, the Company resolved to acquire its own shares as follows:
Class of share:
Common stock
Number of shares:	17,000,000 shares (maximum)(Ratio to outstanding shares, excluding treasury stock: 6.46%)
Total amount of acquisition: ¥20,000 million ($166,666 thousand) (maximum)
Acquisition period:
From May 15, 2015 to August 31, 2015

118

119

Corporate History

Feb.

1931

Chuji Aoi opened first store in Momozono-cho, Nakano-ku, Tokyo,
after separating from Maruni Shokai Co., Ltd.

Apr.

1935

Changed store name to MARUI

Oct.

1936

Opened new store at site of former flagship Nakano Marui store

Mar.

1937

Established MARUI CO., LTD., with capital of ¥50,000

Jul.

1941

Temporarily closed all five stores due to war-time business restrictions

Feb.

1947

Rebuilt flagship Nakano Marui where former store stood before war

Apr.

1955

Tadao Aoi (current Honorary Chairman) joined the Company

Jan.

1960

Changed name of monthly payment system to “credit”

Mar.

1960

Issued first credit card in Japan

Feb.

1963

Formulated Company credo of “Drive action yourself”

Apr.

1963

Listed stocks on Second Section of Tokyo Stock Exchange

Jun.

1965

Upgraded stocks to First Section of Tokyo Stock Exchange

Jan.

1966

Launched full-fledged “scrap & build” initiative

Aug. 1966

Introduced industry’s first computer

Jan.

1970

Became No. 1 in monthly payment credit industry in fiscal year ended
January 31, 1970

Jan.

1971

Completed construction of Marui Computer Center

Mar.

1972

Chuji Aoi became Chairman; Tadao Aoi became President

Jan.

1973

StartedMay

1974

Opened New Shinjuku Marui (currently Shinjuku Marui Main Building)

1960

Issued first credit card in Japan

campaign; Made all store phone numbers end with 0101

Aug. 1975

Founder Chuji Aoi passed away

Sep.

1975

Began offering on-the-spot approval at stores for Akai Cards

Feb.

1981

Began handling small-amount consumer loans

Aug. 1983

Issued Japan’s first magnetic card compliant with international standards

Sep.

1984

Established M & C SYSTEMS CO., LTD.; Entered into IT systems business

Jan.

1991

Recorded increased revenues and income for 30th consecutive year

Nov. 1994

Completed construction of new Head Office building near north exit ofNakano Station

Sep.

1995

Introduced new logo mark

Jan.

2000

Launched Marui store website

Oct.

2003

Switched Group to integrated management system

Oct.

2003

Opened Kobe Marui, first Marui store in Kansai region

Feb.

2004

Opened Kitasenju Marui, largest Marui store to date

Mar.

2005

Obtained special license from Visa International for MARUI Card that
included direct issuance rights

Apr.

2005

Tadao Aoi became Chairman; Hiroshi Aoi became President

May 2005

Chuji Aoi, MARUI’s founder1972

Chuji Aoi became Chairman;
Tadao Aoi became President

2003

Opened Kobe Marui,first Marui store in Kansai region

Announced MARUI GROUP’s medium-term management plan

2005

Tadao Aoi became Chairman;
Hiroshi Aoi became President

120

Mar.

2006

Began issuing EPOS cards (world’s first multipurpose IC card to be issued
on-the-spot in stores)

Sep.

2006

Opened Namba Marui, first Marui store in Osaka
AIM CREATE CO., LTD., established Machida Modi on site of former
Maruibe Machida, representing shift to new business

Oct. 2007

Switched to holding company system; Changed name to
MARUI GROUP CO., LTD.

Oct. 2007

Opened Yurakucho Marui

Apr.

2008

Began issuing EPOS Gold cards

Jun.

2008

Tadao Aoi became Honorary Chairman

Feb.

2010

Launched Rakuchin private brand series

2010

Nov. 2010

Commenced business alliance with Rakuten, Inc.

Dec. 2010MARUI KIT CENTER CO., LTD., visited by Emperor and Empress of Japan

Jun.

2013

EPOS cardholders exceeded 5 million

Sep.

2013

Began issuing credit cards using tablets at all stores

Oct. 2013

Announced opening of Hakata Marui, which is to be first store in Kyushu

May 2014

Reopened Machida Marui as first store with tenants on fixed-term
rental contracts

Jun.

2014

Announced MARUI GROUP’s new medium-term management plan
(April 1, 2014 – March 31, 2017)

Feb.

2015

MARUI GROUP’s stock price increased for first time in seven years
and four months, posting top rate of growth among companies onFirst Section of Tokyo Stock Exchange
EPOS CARD transactions exceeded ¥1 trillion

Apr.

2015

Reopened Shibuya Marui (previously Jam Shibuya)

MARUI KIT CENTER CO., LTD., visited byEmperor and Empress of Japan

2014

Reopened Machida Marui as first store
with tenants on fixed-term rental contracts

Keiki ha Mizukara Tsukuru Mono, biography of MARUI founder Chuji Aoi(Kinichiro Toba, Toyo Keizai Inc.)
In July 1987, Toyo Keizai published a biography of Chuji Aoi entitled Keiki ha Mizukara Tsukuru Mono (Pioneer
Spirit of Creating Opportunities) in recognition of the 12th anniversary of his passing. Framed in the history ofJapan’s credit industry, this book presents Aoi’s business philosophy along with the story of MARUI’s growth overthe period of half a century.

Keiki wo Shikaketa Otoko, novel about MARUI founder Chuji Aoi
Released on August 27, 2015 (Yuzuru Demachi, Gentosha Inc.)
Yuzuru Demachi, who, like Chuji Aoi, hails from Toyama Prefecture, wrote a novel entitled Keiki wo Shikaketa
Otoko (The Man Who Built the Economy) about MARUI’s founder. The novel was published by Gentosha in 2015,
70 years after the end of World War II and 40 years since the passing of founder Aoi. It chronicles the countlessordeals Aoi overcame on his odyssey, beginning with his ambitious move from Toyoma to Tokyo and the harshtraining he underwent at Maruni Shokai. Later, the book details the founding of MARUI, the struggles to rebuild
after the war, and the turmoil experienced within the Company. This novel also provides a memorable account of
Aoi’s wife Tazuko and how she supported her husband throughout his life, which was devoted to his business.

121

MARUI GROUP’s Business
As of April 1, 2015

Retailing and Store Operation
In the Retailing and Store Operation
business, MARUI is transitioning
toward a unique shopping centerstyle store model to devote moreof stores’ floor space to sundries,
restaurants, and other high-demandareas that support all lifestyles.
Spring 2016 will mark the longawaited opening of Hakata Marui,
our first store in Kyushu.

MARUI CO., LTD.
Established

October 1, 2007

Number of
Employees

3,959

Capital¥100 million

Head Office3-2, Nakano 4-chome, Nakano-ku,
Tokyo 164-8701, Japan

President andRepresentative
Director

Masao Nakamura

Telephone

03-3384-0101 (Receptionist)

Business
Activities

Retailing and Marui store operation, Internet sales,
specialty store business (operation and development
of directly managed sales floors and private brands)

Homepagewww.0101.co.jp.e.ex.hp.transfer.com

Credit Card Services
The MARUI Group issued Japan’s
first credit card. In the fiscal year
ended March 31, 2015, card transactions exceeded ¥1 trillion for
the first time since EPOS cards werelaunched in 2006. By leveraging
the expertise gained through theGroup’s long history of providing
credit services, Epos Card is working to expand the number of cardholders, improve usage rates,
increase usage amounts, and further
strengthen operating foundations.

Epos Card Co., Ltd.
Established

October 1, 2004

Number of
Employees

801

Capital¥100 million

Head Office3-2, Nakano 4-chome, Nakano-ku,
Tokyo 164-8701, Japan

President andRepresentative
Director

Toshikazu Takimoto

Telephone

03-4574-0101 (Receptionist)

Business
Activities

Credit card business, credit loan business

Homepagewww.eposcard.co.jp (Japanese only)122

Space Production, Commercial Facility Management, and Advertising Businesses
AIM CREATE CO., LTD.

By leveraging the MARUI Group’s expertise,
AIM CREATE provides comprehensive proposals
for design, construction, planning, promotion,
advertising, and operation of commercial facilities.
The company strives to create facilities that bringjoy to visitors.

Established

August 4, 1959

Capital¥100 million

President andRepresentative
Director

Akira Ino

Business
Activities

Design and construction of commercial facilities, advertisement planningand production, property management

Number of
Employees

350

Head Office34-28, Nakano 3-chome, Nakano-ku, Tokyo 164-0001, Japan

Telephone

03-5340-0101 (Receptionist)

Homepage

www.aim-create.co.jp (Japanese only)

Apparel Distribution Business / Internet Sales Support Business
MOVING CO., LTD.

By combining MARUI’s Internet sales know-how withleading-edge distribution operations, MOVING
provides powerful support for customers’
businesses by responding to their various needs.

Established

October 25, 1960

Capital¥100 million

President andRepresentative
Director

Takashi Wakashima

Business
Activities

Trucking business, forwarding and other businesses

Number of
Employees

359

Head Office

5-1, Bijogihigashi 2-chome, Toda-shi, Saitama 335-0032, Japan

Telephone048-233-1000 (Receptionist)

Homepagewww.moving.co.jp (Japanese only)

IT Systems Business
M & C SYSTEMS CO., LTD.

M & C SYSTEMS operates high-quality systems
utilizing data centers equipped with exceptionally safe facilities and provides system support
for the Retailing and Store Operation and Credit
Card Services businesses.

Established

September 1, 1984

Capital¥234 million

President andRepresentative
Director

Nariaki Fuse

Business
Activities

Software development, IT systems operation

Number of
Employees

110

Head Office3-2, Nakano 4-chome, Nakano-ku, Tokyo 164-8701, Japan

Telephone

03-5343-0100 (Receptionist)

Homepagewww.m-and-c.co.jp (Japanese only)123

Total Building Management Business
MARUI FACILITIES Co., Ltd.

MARUI FACILITIES offers comprehensive operation and management services for large-scalecommercial facilities that include security, facility
maintenance and management, janitorial, andfood court operation services to improve facility
value by providing safety and security while
creating comfortable environments.

Established

July 1, 1987

Capital¥100 million

President andRepresentative
Director

Yoshiaki Kogure

Business
Activities

Total building management business

Number of
Employees

329

Head Office34-28, Nakano 3-chome, Nakano-ku, Tokyo 164-0001, Japan

Telephone

03-3229-0101 (Receptionist)

Homepagewww.marui-facilities.co.jp (Japanese only)

Real Estate Rental Business
MARUI HOME SERVICE Co., Ltd.

MARUI HOME SERVICE conducts its operations
while strengthening coordination with Epos Card.
In addition to soliciting Epos Card’s ROOM iD
advanced-payment rent guarantee service, thecompany is advertising its services through billingstatements and emails as well as on its website.

Established

October 1, 2007

Capital¥100 million

President andRepresentative
Director

Naoya Shibata

Business
Activities

Real estate rental business

Number of
Employees

69

Head Office34-28, Nakano 3-chome, Nakano-ku, Tokyo 164-0001, Japan

Telephone

03-6361-0101 (Receptionist)

Homepagewww.marui-hs.co.jp (Japanese only)

Loan Collection Business
4 色指定 :M100+Y60+BL20%
特色 :PANTONE 207

MRI Co., Ltd.

The greatest strengths of MRI’s business are theclaim collection expertise MARUI GROUP has
developed as a pioneer in the field of credit andthe ability to communicate with customers
refined through its retailing operations. MRI
provides reliable and trustworthy services by
consulting with customers while remaining
considerate of their individual situations.

124

Established

November 25, 2004

Capital¥500 million

President andRepresentative
Director

Kazutoshi Masuda

Business
Activities

Collection and management of receivables business,credit check business

Number of
Employees

55

Head Office34-28, Nakano 3-chome, Nakano-ku, Tokyo 164-0001, Japan

Telephone

03-4574-4700 (Receptionist)

Homepagewww.mri-s.co.jp (Japanese only)Small-Amount Short-Term Insurance Policy Business
Epos Small Amount and Short Term Insurance Co., Ltd.

Epos Small Amount and Short Term Insurance’s
ROOM GUARD compre­hensive renters’ insurance plans support rental housing tenants byproviding coverage for personal belongings,
repairs, and indemnity.

EstablishedFebruary 1, 2013

Capital¥300 million (including paid-in capital)

President andRepresentative
Director

Izumi AsoBusiness
Activities

Small-amount short-term insurance policy business

Number of
Employees

9

Head Office34-28, Nakano 3-chome, Nakano-ku, Tokyo 164-0001, Japan

Telephone

03-4546-0101 (Receptionist)

Homepagewww.epos-ssi.co.jp (Japanese only)

Supply Pickup
MARUI KIT CENTER CO., LTD.
Special subsidiary established to employ people with disabilities

MARUI KIT CENTER supports other businesses
by providing pickup services to ensure smoothdelivery of the supplies needed for sales activities in stores and by conducting product inspections and office work. These tasks are performedby people with disabilities, creating employment
opportunities for such individuals while helping
them achieve independence.

Established

October 1, 2003

Capital¥42.5 million

President andRepresentative
Director

Takeo Horiguchi

Business
Activities

Supply pickup, product inspection

Number of
Employees

46

Head Office

Toda Product Center, Second Building,
5-1, Bijogihigashi 2-chome, Toda-shi, Saitama 335-0032, Japan

Telephone048-421-7351 (Receptionist)

Corporate Websites for Operating Companies in MARUI GROUP’s Retailing-Related Services BusinessSpace Production, Commercial Facility
Management, and Advertising Businesses

Apparel Distribution Business /Internet Sales Support Business

IT Systems Business

M & C SYSTEMS CO., LTD.
www.m-and-c.co.jp (Japanese only)
Total Building Management Business

MARUI FACILITIES Co., Ltd.
www.marui-facilities.co.jp (Japanese only)
Real Estate Rental Business

MARUI HOME SERVICE Co., Ltd.
AIM CREATE CO., LTD.

MOVING CO., LTD.

www.aim-create.co.jp (Japanese only)

www.moving.co.jp (Japanese only)

www.marui-hs.co.jp (Japanese only)125

MARUI GROUP Store Network
As of June 30, 2015

Shibuya Modi
(Planned opening in fall 2015)

Ibaraki Mito

SaitamaOmiya

Kawagoe

Hakata Marui(Planned openingin spring 2016)

Soka
Shiki

Kashiwa

Kyoto

Kitasenju

Ikebukuro

Ueno

Kichijoji Nakano Shinjuku
Kokubunji

Chiba
Kinshicho

Shibuya
Yurakucho

MachidaMizonokuchi

Shizuoka
Namba
Kobe

Shinjuku Marui

126

Kanagawa
Totsuka

Kitasenju Marui

Tokyo

Ebina
Kawasaki

Yokohama

Yurakucho Marui

Marui
Modi

Marui stores
Sales floorarea (m2)

Operatingrevenues(billions of yen)

OpenedAddress

Telephone

Shinjuku Marui

30,59028.4

September 10, 1948

3-30-13 Shinjuku, Shinjuku-ku 160-0022

03-3354-0101

Ikebukuro Marui

12,170

6.8

February 25, 1977

3-28-13 Nishi-Ikebukuro, Toshima-ku 171-0021

03-3989-0101

Shibuya Marui

4,240

9.2*1

October 1, 1958

1-22-6 Jinnan, Shibuya-ku 150-0041

03-3464-0101

Kinshicho Marui

22,99013.0

September 2, 1983

3-9-10 Koutoubashi, Sumida-ku 130-0022

03-3635-0101

Ueno Marui

16,39013.9

August 24, 1985

6-15-1 Ueno, Taito-ku 110-8502

03-3833-0101

Kitasenju Marui35,30034.5

February 27, 2004

3-92 Senju, Adachi-ku 120-8501

03-5244-0101

Yurakucho Marui

18,50022.9

October 12, 2007

2-7-1 Yurakucho, Chiyoda-ku 100-0006

03-3212-0101

Nakano Marui

4,950

5.3

February 17, 1931

3-34-28 Nakano, Nakano-ku 164-0001

03-3382-0101

5.6

October 30, 1960

1-7-1 Kichijoujiminami-cho,Musashino-shi 180-8552

0422-48-0101

Name

Tokyo

Kichijoji Marui

11,950Machida Marui

7,550

5.7

September 20, 1980

6-1-6 Haramachida, Machida-shi 194-0013

042-728-0101

Kokubunji Marui

14,30014.0

March 1, 1989

3-20-3 Minami-cho, Kokubunji-shi 185-8562

042-323-0101

September 20, 1996

2-19-12 Takashima, Nishi-ku,
Yokohama-shi 220-0011

045-451-0101
044-245-0101

Marui City Yokohama

16,77013.8

Kawasaki Marui

12,300

4.7

March 11, 1988

1-11 Nisshin-cho, Kawasaki-ku,
Kawasaki-shi 210-0024

Marui Family
Mizonokuchi

32,26021.3

September 12, 1997

1-4-1 Mizonokuchi, Takatsu-ku,
Kawasaki-shi 213-0001

044-814-0101

Marui Family Ebina

19,50012.7

April 19, 2002

1-6-1 Chuo, Ebina-shi 243-0483

046-232-0101

Omiya Marui

18,64011.0

September 28, 1982

2-3 Sakuragi-cho, Omiya-ku, Saitama-shi 330-9501

048-642-0101

Soka Marui

16,530

4.5

February 21, 1992

2-9-1 Takasago, Soka-shi 340-0015

048-922-0101

Marui Family Shiki

18,90013.0

February 25, 2000

5-26-1 Hon-cho, Shiki-shi 353-0004

048-487-0101

Chiba

Kashiwa Marui

18,810

7.3

April 24, 1964

1-1-11 Kashiwa, Kashiwa-shi 277-0005

04-7163-0101

Ibaraki

Mito Marui

13,300

3.9

July 25, 1970

1-2-4 Miyamachi, Mito-shi 310-0015

029-225-0101

Kanagawa

SaitamaShizuoka

Shizuoka Marui

13,4605.7

September 21, 1969

6-10 Miyukicho, Aoi-ku, Shizuoka-shi 420-0857

054-252-0101

Osaka

Namba Marui17,00012.0

September 22, 2006

3-8-9 Namba, Chuo-ku, Osaka-shi 542-0076

06-6634-0101

Hyogo

Kobe Marui

6,940

5.1

October 3, 2003

1-7-2 Sannomiya-cho, Chuo-ku, Kobe-shi 650-0021

078-334-0101

Kyoto

Kyoto Marui

8,760

4.4

April 27, 2011

68 Shin-cho, Shijodori-Kawaramachi-Higashiiru,
Shimogyo-ku, Kyoto-shi 600-8567

075-257-0101

Fukuoka

Hakata Store
Development Office

15,000(planned)—

Spring 2016
(planned)

2F, XYMAX Hakata Ekimae Building,
4-2-1 Hakata Ekimae, Hakata-ku,
Fukuoka-shi 812-0011

092-518-0101

Name

Sales floorarea (m2)

Operatingrevenues(billions of yen)

OpenedAddress

Telephone

Shibuya Modi

9,840

—

Fall 2015 (planned)

1-21-3 Jinnan, Shibuya-ku 150-0041—

Machida Modi

13,7208.6

September 28, 2006

6-2-6 Haramachida, Machida-shi 194-0013

042-812-2700

Kanagawa

Totsuka Modi

16,5809.3

March 15, 2007

10 Totsuka-cho, Totsuka-ku,
Yokohama-shi 244-0003

045-862-0135

Saitama

Kawagoe Modi

7,850

1.3

March 24, 2007

4-2 Wakita-cho, Kawagoe-shi 350-1122

049-227-5950

Modi storesTokyo*1 Operating revenues for Shibuya Marui are from the period when the current Shibuya Modi was considered part of Shibuya Maruiduring the fiscal year ended March 31, 2015.

Marui Family Mizonokuchi

Namba Marui

Machida Modi

127

Overview of MARUI GROUP
As of March 31, 2015

Company Overview

Distribution of Shares Held by Shareholder Type

Name
Head office

MARUI GROUP CO., LTD.
3-2, Nakano 4-chome, Nakano-ku,
Tokyo 164-8701, Japan
Date of foundation
February 17, 1931
Date of establishment March 30, 1937
Capital¥35,920 million
Business activities
Corporate planning and management forGroup companies conducting Retailing andStore Operation, Credit Card Services, andRetailing-Related Services businesses andother businesses
StoresMarui: 24 located in Kanto, Tokai, andKansai regions

Individuals andothers*2
42,384,000 shares(15.2%)

Financial institutions
91,515,000 shares(32.8%)
278,660,417
sharesSecurities
companies
8,836,000 shares(3.2%)

Foreign institutions
and individuals
92,896,000 shares(33.3%)

Other companies
within Japan
43,027,000 shares(15.4%)*2 Individuals and others includes 15,588,364 shares of treasury stock.

(1 scheduled to be opened in spring 2016)

Modi: 3 located in Kanto region(1 scheduled to be opened in fall 2015)

Major Shareholders

Total sales floor area 444,040 m2
Number of employees 5,918(Group total, excludes temporary employees)

Main banks

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking CorporationMitsubishi UFJ Trust and Banking
Corporation
Mizuho Bank, Ltd.
The Bank of Yokohama, Ltd.
KPMG AZSA LLC

Accounting auditor

Stock Information
Stock listing

Number of Percent ofsharestotal shares(Thousands issued*3(%)
of shares)

Name

Tokyo Stock Exchange,
First Section (loan margin trading issues)
8252

Securities code
Number of authorizedshares1,400,000,000
Number of common
278,660,417
shares issued*1
Number ofshareholders
22,979The Master Trust Bank of Japan, Ltd.
(Trust Account)

22,808

8.7

Japan Trustee Services Bank, Ltd.
(Trust Account)

19,965

7.6

Aoi Real Estate Co., Ltd.

6,019

2.3

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

5,808

2.2

Juniper Networks, Inc.

4,661

1.8

Northern Trust Corporation (AVFC)
Re U.S. Tax Exempted Pension Funds

4,194

1.6

Trust & Custody Services Bank, Ltd.
(Securities Investment Trust Account)

4,100

1.6

Toho Co., Ltd.

3,779

1.4

BNP Paribas S.A.

3,680

1.4

AOI SCHOLARSHIP FOUNDATION

3,234

1.2

*3 Percent of total shares issued is calculated excluding treasury stock.

*1 Number of common shares issued includes 15,588,364 shares of treasury stock,equivalent to 5.6% of the total number of shares of common stock issued.

Stock Price
Closing price for Company stock (Yen)
 2,500

Nikkei 225 (Yen)
25,000
Nikkei 225

2,000
1,500

20,00015,000

Closing price forCompany stock

1,000

10,000

500

5,000

0

0

Trading volume (Thousands of shares)
100,000
80,00060,00040,00020,0000128

2005/4

2006/1

2007/1

2008/1

2009/1

2010/1

2011/1

2012/1

2013/1

2014/1

2015/1

From the Chief Editor

MARUI GROUP Websites
MARUI GROUPMARUI GROUP CO., LTD.
Corporate information and IR informationwww.0101maruigroup.co.jp/english.html

Retailing and Store Operation

MARUI CO., LTD.
Marui store and product informationwww.0101.co.jp.e.ex.hp.transfer.com

Co-Creation Management Report 2015 was constructed asa tool for facilitating meaningful communication with stakeholders and understanding with regard to MARUI GROUP.
In compiling this 2015 report, the first report of its type for
the Company, an internal project team was assembled in
December 2014. The editorial policies of the report andthe information to be communicated were discussed
extensively, and numerous stakeholders both inside andoutside the Company were interviewed to help develop
an understanding of reader needs.
The project team consisted of several representatives
from the Group, including President Hiroshi Aoi and core
members from the Corporate Planning Division, theFinancial Department, the General Affairs Department,
and the CSR Promotion Department, as well as external
corporate communication consultants. Through a multifaceted discussion process spanning months, we sought topresent the corporate value of the Group in a visible form.
As integrated reports have recently been gathering attention on a global scale, we referenced such guidelines as theInternational Integrated Reporting Framework released by
the International Integrated Reporting Council in compilingthis report.
We plan to collect feedback and suggestions fromreaders of this report to be utilized for improving futurereports as we strive to evolve these reports into truly ­valuablecommunication tools. It is our hope that this report will help
readers better understand the policies and initiatives MARUIGROUP is implementing in the pursuit of sustainable growthand long-term improvements in corporate value.

Shin Sakamoto
MARUI Internet shopping web channel(Japanese only)
voi.0101.co.jp

Credit Card Services

Epos Card Co., Ltd. (Japanese only)
www.eposcard.co.jp

Chief Editor of Co-Creation Management Reports
General Manager, Public Relations Office, General Affairs Department,
MARUI GROUP CO., LTD.

Contact
MARUI GROUP CO., LTD.
3-2, Nakano 4-chome, Nakano-ku, Tokyo 164-8701, Japan
Tel: 03-3384-0101 (Receptionist)
Fax: 03-5343-6615
Email: koho-ml@0101.co.jp
For inquires about:
Corporate information, please contact
Public Relations Office, General Affairs Department
IR and financial information, please contact
Financial Section, Financial Department
Stock, please contact General Affairs Section,
General Affairs Department

129

Co-Creation Management Report 2015

Publication date: October 2015
Publisher: MARUI GROUP CO., LTD. / Co-Creation Management Promotion Project Team
Planning and production: EDGE INTERNATIONAL, INC.
Printed in Japan