Human Capital-Focused Management of
MARUI GROUP #2
Evolution to Company Resolving Social Issues

Management Philosophy “Equate the Development of Our People with theDevelopment of Our Company”
Based on our management philosophy, corporate culture and human growth come together toenhance corporate value

Corporate value

Development of our people

Human capital

Corporate culture
Corporatephilosophy
2First, let me review what we have done so far.
Marui Group regards human capital as the source of its corporate value, and has beenworking to transform its corporate culture and develop its people based on thecorporate philosophy that "Equate the development of our people with thedevelopment of our company”.

Transformation of Corporate Culture
Transformed corporate culture and updated operating systems through eight measuressince 2005
1 Corporate philosophy
2 A culture ofInteraction
3 Work style reform
4

Embracing diversity

5

A culture of voluntary
participation

6 Personnel transfers withinGroup to different job
categories
7 Appraisal based on both
performance and value
8 Well-being
Applications

Impact & profit

Old corporate cultureOS

New corporate culture3

In 17 years since 2005, we have been working to transform our corporate culture, andupdating the corporate culture which is the OS of management to a new one througheight measures, including our unique initiatives, starting from corporate philosophy,
culture based on voluntary participation, intra-group profession changes, biaxial
evaluation of performance and value, etc.

Employee engagement
Our company’s own index, measured since FY2012, has improved significantly overthe past 10 years

2012

2022

I know what is expected of meon the job

46％

80％

I feel respected at work

28％

66％

I’m taking on challenges basedon my strengths

38％

52％
4

By these measures, employee engagement has improved.
Comparing our own engagement indexes over the 10-year period from 2012 to 2022,
there are significant improvement such as expectations on their jobs from 46％ to80％, respect at work from 28％ to 66％, and using their own strengths from 38％ to52％.

Human Capital Investment and Returns
Marginal profit of ¥56.0 billion and IRR of 12.7％ for new businesses generated through humancapital investment are forecast to exceed capital costs

Human capital investment
FY2017 to FY2021¥32.0

billionReturns
FY2017 to FY2026

New businesses
Anime business
Rent guarantee
Co-creative
investment, etc.

Marginal profit
IRR

¥56.0
12.7％

billion5

We have promoted investment in people as well. Human capital investment over thefive years from 2017 to 2021 was about ¥32 billion. If we consider the marginal profit
generated during the same period from new businesses such as the animation
business, rent guarantees, and co-creative investment as returns, the marginal profit
to be generated during the 10 years from 2017 to 2026 will be about ¥56 billion, andthe internal rate of return will be 12.7％, and this investment effect is forecasted to
exceed capital costs.

Human Capital-Focused Management of MARUI GROUP #2

Evolution to Company Resolving Social Issues

Now, let me talk about the main subject of my presentation, that is a goal we strive
for through human capital management, Evolution to a company resolving social
issues.

VISION 2050

VISION 2050

Build a world that transcends
dichotomies of impact and profit

7

In our VISION 2050, developed in 2019, we set forth a vision of transcending thedichotomy of impact and profit. We are now able to create innovations to accomplish
this vision by transforming our corporate culture.

Signs of Success Regarding Balancing Impact and Profit

ProfitImpact(1) HERALBONY card
(2) Supportive investment

New corporate culture(3) Owner card

8

The innovations born from the seeds of "VISION 2050" are still just small buds, butthese buds, with their two leaves of impact and profit, represent the prototype of thebusiness we will expand going forward. Today, I will show you three examples.

Case 1: HERALBONY card
Impressed by the Company’s pitch event, one of the employees recruited the members toform a team to achieve an impact■ Corporate introduction■ 1st Co-Creation Pitch (2021)

Release YourDistinctivenessA startup aiming to transform the welfare fieldby bringing the art of intellectually disabled
artists to society in various forms

Received excellence award

9

The first one is HERALBONY Card.
HERALBONY Co., Ltd. is a welfare startup company with a mission “Unleash the
Exceptionality”. The company won the excellence award at a pitch event hosted by
us in 2021, and this led to our investment and collaboration. One of our employees
who was impressed by their pitch voluntarily recruited members to form a team.

Case 1: HERALBONY card
Promoted co-creation across the Group Companies and developed HERALBONY card that
resonates with many customers■ Cross-functional teamCo-creative investee

Support for individual personalities

Voluntary

Team member participation“Card that helps propel society
forward every time it is used”
Co-creative investment

EventsNumber of cardholders

0.01 million people*FY2023

The members who responded to the call for action worked together in a projectacross the group companies to promote co-creation. As a result, the “HERALBONY
Card" was developed, in which a portion of the amount spent on the card is donatedto artists with disabilities.
The HERALBONY Card is well received for its beautiful design and the concept of acard that helps propel society forward every time it is used, and currently has over
10,000 cardholders.
The card is expected to generate a higher LTV than the Gold Card, as many
cardholders use it as their main card.

10Case 2: Supportive Investment
Take initiatives with co-creative investees to realize VISION and impact and provide
investment opportunities in developing countries by issuing digital bonds

VISION 2050

Financial inclusion for people around the world

Provide customers with investment
opportunities in developing countries

×

Digital bond11

Next case is supportive investment. To the goal of providing financial inclusion forover 10 million people in the world as set forth in VISION 2050, we have invested in
Gojo & Company and CLOUD CREDIT, and have promoted collaboration with them toprovide customers with investment opportunities in developing countries.

Case 2: Supportive Investment
Group members gather to work with outside experts to issue Japan’s first digital bonds

Support
Co-creative teamCo-creative
investment

Co-creative investee

System company

CFO Kato

Financial

Collaborators

12

By the revision of Financial Instruments and Exchange Act, it had become possible toutilize digital bonds with a blockchain technology, and that opened a way for us.
For issuing digital bonds, members who responded to the call from CFO Kato, theleader of the Co-creative team, gathered voluntarily and prepared in a project tocollaborate also with outside experts. With that, we could issue the first digital bonds
by a Japanese operating company.

Case 2: Supportive Investment
Helped 33,000 people in developing countries with applications worth ¥3.5 billion made by
the customers
Support for individuals in utilizing their money

Well-being
Customers
Amount publicly invited(Source: Gojo & Company)

Amount applied for¥0.2billion < ¥3.5billion(6,000 people)

Number of recipients

33,000 people
13

We received applications worth as much as ¥3.5 billion for our digital bonds fromapproximately 6,000 customers, far exceeding the publicly invited amount of ¥200
million. This enabled us to deliver financial inclusion to 33,000 people, mainly womenwith small children in developing countries.

Case 2: Supportive Investment
The amount of money later used by the applicants for supportive investment increased 1.3 times
from the previous amount■ Amount of EPOS Card usage after application for lottery of supportive investment (YoY)
Applicants

1.3 times
Non-applicants

1.1 times

From May 2021 to October 2021

From May 2022 to October 2022

*No. 1 bond n = 1,500 people, Gold membership continuing from previous year (all outcomes included)

14

In addition, the amount of Epos card usage by customers who use the supportive
investment increased 1.3 times in six months.
Supportive investment, which helps customers to build assets and contribute tosociety, is also expected to have a remarkable effect on earnings improvement.

Case 3: Owner Card
To meet the needs of entrepreneurs, employees who participated voluntarily formed a limitedtime interdepartmental organization where they concurrently develop businesses
Pains related to funding and settlement

at the start of the business

Voluntary

Official initiatives participation

Department Department ... Company
A
B
C

CompanyD
15

Next, Owner’s Card. This project was launched in response to a need we received
from entrepreneurs, our collaborative partners, for EPOS Card to help them financethe initial start-up of their businesses. Our employees, wishing to support
entrepreneurs of future generations, voluntarily raised their hands and they got
together to form this project.

Case 3: Owner Card
Issue cards based on creditability of individuals and promote new “co-creation of creditability”
Creditability

Owner card

Business
creditPersonal
creditPersonal cardTime

Two layers of credit

Co-creation of new credit
for business owners
16

What was discovered through the repeated dialogues with the entrepreneurs was a
new concept of co-creation of creditability, a "two-story building of creditability" that
supports startup owners, whose businesses take time to build up their creditability,from the beginning based on their personal creditability. Based on this concept, thedecision was made to commercialize this business.

Case 3: Owner Card
Target 15,000 cardholders and ¥10.0 to 15.0 billion of card LTV by 2030 after one-year trial■ Target for transactions and number of cardholders¥50.0billion(Billionyen)
500

Number of cardholders(small business operators)

First year

5 years later

2,000 people

25
250

15,000 people

Card LTV

40First1year

5 years
2 later

5 years¥10.0 – ¥15.0billion17

By 2030, Owner’s Card targets more than 15,000 cardholders, transactions of morethan ¥50 billion , and an LTV of ¥10-15 billion.

Evolution to Company Resolving Social Issues
Nurture businesses that show small signs of success to resolve social issues and promote
them companywide to evolve into a company resolving social issues

New corporate culture

Corporate culture 2.0

Company resolvingsocial issues

18

These examples are only small buds at present, but by increasing and growing thesebuds, we will grow them into a large trees that will bear a lot of fruits and evolve us
into a company that solves social issues.

Amendment to Articles of Incorporation
In order to declare that our aspirations will remain unwavering, “Practice of Corporate
Philosophy” will be newly established in the Articles of Incorporation in June 2023

Newly establish “Practice of Corporate Philosophy”
in the Articles of Incorporation

Propose to the General Meeting of Shareholders on June 27

19

In order to declare that our aspirations will remain unwavering, we have decided toadd "Practice of Corporate Philosophy" to our Articles of Incorporation and submit itto the General Meeting of Shareholders to be held on June 27.

Article 2 (Exercise of Corporate Philosophy)
Organize our vision by tracing it to Why, How and What, and reflect it in the article
Newly establish Article 2 (Exercise of Corporate Philosophy)
Through the exercise of its corporate philosophy of “continue evolving to better aid ourcustomers” and “equate the development of our people with the development of our company,”
MARUI GROUP strives to fulfill its mission of contributing to the creation of a flourishing andinclusive society that offers happiness to all.
By merging finance and retailing, the Company aspires to provide economic enrichment as well as

Whyemotional enrichment in the form of happiness and to create a society in which everyone is able toobtain this happiness.
However, this important mission cannot be carried out by the Company alone. Accordingly, anapproach toward fulfilling this mission has been adopted entailing co-creation with customers,
investors, communities and society, business partners, and future generations.
By engaging in such co-creation management with stakeholders, MARUI GROUP works to create harmony
between the interests and happiness of all of its stakeholders while generating earnings and contributing to
the resolution of social issues through its business.

How
What
20

This shows the contents. Based on our management philosophy, we have defined"Why" as our mission to work together to create an inclusive society in which all
people can feel happiness, "How" as co-creating with all stakeholders to realize thismission, and "What" as aiming to both solve social issues and achieve profits.

Impact Update
Impact 1.0 (May 2021)
Creating afuture for
futuregenerations
togetherCreating
happinessforindividuals

Creating
platforms
for cocreation

Help realize a carbon-neutral
society
Creation of a circular
economySupport self-actualization ofindividuals
Support individuals in
pursuing their interests
Provision of venues for cocreation
Facilitation of open working
styles for those in andoutside the company

Impact 2.0 (May 2023)
Creating a future
for future
generations
together

Help realize a carbon-neutral society
Innovation in sustainable consumption
and living
Support future generations to “createbusinesses”

Creating happinessfor individuals

Support individuals in pursuing theirinterests
Support for individual personalities
Support for individual healthSupport for individuals in utilizing theirmoney

Creating
ecosystem
for co-creation

Provision of venues for co-creation
Innovation of work styles andorganizations

21

In addition, we have revised the Impact Goals corresponding to the "What" wecreated in 2021 and updated them to "Impact 2.0."

The first theme, "Creating a Future for Future Generations Together" relates to“Creation of a circular economy”. This has been rather difficult for us to define andput into specific initiatives, so we have changed this to "Innovation in sustainableconsumption and living. Here we added “Support future generations to “createbusinesses.”

The second theme, "Creating Happiness for Individuals," we added "individual
personalities" for D&I, "health" for wellbeing, and "how to best utilize the money" forfinancial inclusion.

The third item, "Creating Platforms for Co-Creation," is now changed to "Creating
Ecosystem for Co-Creation," and "Innovation of Work Styles and Organizations" isadded.

Impact KPIs and Financial KPIs
ImpactHelp realize a carbon-neutral society

Future ofInnovation in sustainable consumption andfuturelivinggenerations
Support future generations to “createbusinesses”
Support individuals in pursuing their

Happinessforindividuals

interests
Support for individual personalities
Support for individual healthSupport for individuals in utilizing theirmoney

Ecosystem
Provision of venues for co-creationfor
Innovationof work styles and organizations
co-creation

2030 KPI

Financial value

Users participating in “innovation in sustainableconsumption and living”

1.0 million tons
or moreMore than 1.0
million people

Companies offering options for “innovation insustainable consumption and living”

More than 1,000
companies

Investing in future generation entrepreneurs

100 cases or more

Reduction of CO2

Card users supporting interests, personalities,
and healthCompanies supporting interests, personalities,
and health
Domestic and overseas young people and otherfinancial service users
Supportive investment through co-creative
partners
Companies that create opportunities for cocreation
Participants in the ecosystem for co-creation
Innovation creation personnel

More than 3
million people
More than 200
companies
More than 10
million people
More than 20
countries
worldwide
More than 350
companies
More than 10,000
peopleMore than 5,000
peopleMore than 680.0
billion transactions
LTV 90 billion or
higherMore than 1.3
trillion transactions
LTV 200 billion or
higherMore than 3.5
trillion transactions
LTV 250 billion or
higherIRR 10％ or higher

Publish “Impact Book” at the end of June

We will also set impact KPIs and financial KPIs to quantitatively monitor progress andachieve both impact and profit. As a first step, we will publish an "Impact Book" atthe end of June. In the "Impact Book," We will clarify the logic model of our efforts
for each goal and report on the progress of each KPI.

22

Road to Company Resolving Social Issues
There are high hurdles to evolution, and it is necessary to create “an organization that fully
shows creativity, that is, where you can experience flow through your work”

Company resolvingsocial issues

Fully show creativity=
Create an organization where “you can experience flow through your work”
23

By the way, it is easier said than done to achieve a balance between the pursuit ofprofit and the resolution of social issues, and we anticipate considerable difficulties. In
order to jump over these high hurdles, it is essential for each one of us to fully
unleash our creativity. To this end, we will work to create an organization that enables
us to experience “flow” through our work.。

“Flow” Experiences
Balance achieving our goals and achieving happiness for individual workers by creating an“organization where you can experience flow through your work”■ “Flow” experience image

Uncertain

Flow

Experience “flow”

Challenge

through work

Unleash yourcreativity

Indifferent

The experience
itself is“happiness”

Bored
Ability
24

This flow is a concept proposed by psychologist Mihaly Csikszentmihalyi, and refers to
the state of timeless, self-absorbed immersion that people often experience when
their level of ability and challenge are balanced. When people experience flow, they areable to fully unleash their creativity, which allows them to overcome high hurdles andgrow. It can also be said that the experience of flow itself brings happiness. By
creating an organization where people can experience flow through their work, we aim
to achieve both the realization of our To-Be aspirations and the happiness for every
one of our employees.

Initiatives for Designing Organizations Where You Can Experience Flow

(1) Innovation of work styles and organizations(2) Promotion of Digital Transformation

25

To this end, we will promote two initiatives. First, Innovation of work styles and ourorganizations, and second, Promotion of DX.

Innovation of work styles and organizations
Expand an outcome-driven, project-based organization as a standard way of working rather
than an exceptional initiative
Until now

From now on

Exceptional initiatives

Standard way of working
26

First, in terms of innovation in work styles and organizations, we will promote
project-based work styles and organizations. In the case of the innovation I
introduced earlier, project-based organizations, such as official initiatives and cocreation teams, have led to successful results. We will continue to expand the
project-based organization as the norm or standard rather than the exception.

Way of Working: Expansion of Official Initiatives
Expanded official initiatives with themes that balance impact and profit to nine teams,
adding four teams from the previous year
Names of themes

Focus on impact

Consider in-house entrepreneurial community
Develop apps for future generations
Consider designs of workplace to exert creativity
Develop apps to consider career designs

Impact and profit

Body positive
Establish businesses to promote DE&I
Create events in the social domain

Focus on profit

Consider new credit card services using Web3
Consider new financial services without balance
sheet (B/S)

As a first step, official initiatives will be expanded. We will set various themes thatbalance impact and profit, and drive innovation through project-like activities thattranscend internal / external boundaries by having voluntary members work on
themes in which they wish to participate.

27

Way of Working: Organizations without Section Managers
Redefine the roles of section managers and members and form a flat team that runs
independently to improve creativity
Vertical organization

Organizations without section managers
Team

Management=
position

Section manager(leader)

Person in
Leader Person in
charge of xx
charge of xx

TeamConsultation

SupportManagement=
position

Supporter

Person in
Person in
Leadercharge of xx
charge of xx

28

We will also develop teams without section manager. Section manager manages
people and team, but is not the head of the team, but a supporter of the team.
Instead of being at the top, being side by side to the team members, creating a flatorganization. Each member is independent and self-driven, encouraging creativity as ateam.

Way of Working: Early Appointment
Revise the personnel system to allow skipping grades as “human capital investment” and toallow talented young people to flourish at an early stage■ Minimum managerial age
From now on

Executive
16
Officer
General
12
ManagerCurrent status

Shortest

26 years old

Old system

Section
8
Manager
Chief
4
Leader0
New employee
22

26

30

39
29

At the same time, accelerate early assignment. By revising the personnel system, forthose who can be expected to contribute to higher corporate value, early promotion
will be encouraged as a part of investment in human capital. Minimum age forpromotion to manager will be changed from the current 29 to 26. Preparing a stage
where young talents can play an active role will allow for more innovations.

Digital Transformation Gap
It is essential to use digital leverage and speed to achieve goals and repeat hypothesis testing athigh speed

Goals

DigitalGap

Leverage
Maximize
efficiency withlimited resources

Speed
Repeat hypothesis
testing at high speed

Current status

30

Next is the promotion of DX. In order to bridge the gap between the status quo andthe vision, the power of digital is indispensable. Digital power provides leverage andspeed. In the case of investment in individual interest, leveraging the digital power ofblockchain led to a breakthrough. Also, in order to overcome the big challenge ofbalancing impact and profit, repeating quick hypothetical testing is essential. However,the challenge for advancing DX was the lack of experts to take on these tasks.

Digital Transformation: Hiring Professionals with Muture
Recruitment of highly skilled digital professionals, which is not available under the
MARUI GROUP brand, has progressed and contributed to product development■ Muture Corporation■ Hiring digital professionals

UX Designer

UX Designer

Product Manager

×
31

Therefore, in April of last year, Marui partnered with a leading UX design company,
Goodpatch and established Muture, and began hiring professionals that could not be
hired under the Marui Group brand. Fortunately, some of the best talents in theindustry have joined us and are contributing to the development of lifestyle apps and
OMEMIE.

Digital Transformation: Tech Organizational Development
Agile tech organizational development is essential to harness the power of digital toresolve social issues
Core system

Tech

Large amount of data processing

UI/UX improvement

Meticulous planning

Hypotheses and testing

Waterfall

Different worlds

Agile

Accuracy and stability

Speed and flexibility

With knowledge

No knowledge
32

Through Muture, recruiting progressed, however, a new challenge has emerged. While
experts are now developing products, in order to expand product development
throughout the company and ensure its continuity, organization as a whole must
transform into an agile organization. Marui has been strong in core systems, but whenit comes to completely different tech-type organizational development, we lack inhuman resources and know-how to lead the effort.

Digital Transformation: Inviting CDXO
Invite Mr. Tsuchiya with digital and managerial knowledge as CDXO and promote agileorganizational developments

Executive Officer
Chief Digital Transformation Officer

Mr. Naofumi Tsuchiya

President and Representative Director, Goodpatch Inc.

33

So, we approached our partner of Muture, Goodpatch. The president, Mr. Tsuchiya
kindly accepted the offer. As of today, we are pleased to announce that Mr. Tsuchiya
has agreed to serve as our Executive Officer and Chief Digital Transformation Officer.
He is also well versed in organizational development. So, he will be giving us advice
from the perspectives of both digital expert and business leader, which will help us todevelop an agile organization.

Corporate Culture 2.0 “Social Experiment Companies”
Introduce the number of plate appearances and the number of trials as behavioral KPIs totolerate failures and encourage challenges
Current

From now on

Encourage participation via

encourage challenges

voluntary participation
Percentage of employees
who participate via
voluntary participation

85％

New corporate culture

Goals

Tolerate failures andfail fast, fail forward

Number of plateappearances/
number of trials

5,000 times

Social experimentcompany

Company resolvingsocial issues

34With that said, we will work to further transform the corporate culture. Under
Corporate Culture 2.0, by declaring ourselves to be a social experiment company,
Marui will foster a culture that accepts failure and encourages challenge. To this end,
behavioral KPIs, such as the number of at bats and the number of attempts to takeon challenges will be defined. By experimenting a lot and failing fast, we will encourage
fail fast and fail forward to accumulate the know-how for success, aiming to become acompany that continues to drive innovation.

Expansion of Human Capital Investment
Target highly efficient management by increasing effectiveness of human capital investment of
IRR 12.7％ to ¥65.0 billion in the next five years
Tangible investments

Intangible investments

Stores and facilities, etc.

Human capital investment

Hurdle rate = IRR

10％

FY2024 to FY2028

Investment
amount¥40.0billion<

IRR

12.7％ *

Highly efficientmanagement

FY2024 to FY2028
Investment
billionamount¥65.0* Calculate return on investment by considering marginal profits from our Company’s unique new businesses andservices created through human capital investment as returns(Investment period: FY2017 to FY2021 – payback period: FY2017 to FY2026)

At the same time, increasing human capital investment. The IRR for human capital
investment is 12.7％, which is higher than the hurdle rate of 10％ for tangible
investments, mainly stores. Therefore, while improving the effectiveness, humancapital investment will increase to more than ¥65billion over the next 5 years, thereby
realizing highly efficient management.

35

Increase in Intangible Asset Ratio and Corporate Value
Raise the ratio of intangible assets (non-financial information) to total market
capitalization to the level of U.S. companies and target to increase corporate value

Percentage ofintangible assets=1－

Net tangible
assetsMarketcapitalization■ Comparison of the MARUI GROUP in Japan and the U.S.

Tangible
assetsIntangible
assets2030 target

80％

90％
44％

32％
United StatesJapan(S&P500)(Nikkei 225)

Our Company

Source: Prepared by the Company based on OCEAN TOMO “INTANGIBLE ASSET MARKET VALUE STUDY” (2020)

Increase in human capital investment shall lead to higher corporate value. The ratio of
intangible assets to corporate value is 90％ in the US, whereas in Japan, it is 32％,
very low. Marui now stands at 44％. Going forward, through human capital investment,
we aim to increase this ratio to 80％ by 2030, closer to the level in the U.S., thereby
enhancing corporate value.

36

Achieve Balance between High Growth and High Returns
Transcend dichotomies of “growth” and “returns” and evolve to a new managementbalancing high growth and high returns
High returns

Mature company

MARUI GROUP
Low

High growthStart-up company

Low
37

Through these efforts, Marui will overcome the conventional dichotomy between
growth and returns, and evolve into a new management style that achieves both highgrowth and high returns.

Corporate Value That We Aspire To
Raise ROE and target 5 times of PBR through evolution into a company resolving social
issues with human capital investment

Current

FuturePBR 1.7times

PBR 5times= ROE 10％ × PER 17times= ROE 25％ × PER 20times(Forecast for FY2024)(Current level)

38

Finally, our target corporate value. Through our evolution into a company that solves
social issues by investing in human capital, we aim to increase ROE to around 25％
and achieve PBR of 5 times.

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

That is all from me.
Thank you for your attention.