Shareholder Returns and Policies

Shareholder Returns and Policies

Continuous, Long-Term Dividend Increases

shareholder returns from share buybacks to dividends,
and we will aim for a consolidated payout ratio of 55%
and move toward this ratio in a phased manner as we
implement ongoing, long-term dividend increases. Our
target for the total return ratio will be around 70%, a levelthat will enable us to maintain an equity ratio of 30%
going forward. Acquired treasury stock will, in principle,
be canceled.

MARUI GROUP has been conducting proactive sharebuybacks over the past four years. Also, in the fiscal year
ended March 31, 2017, we raised our target for consolidated payout ratio from 30% or more to 40% or more.
The total return ratio exceeded 100% for four consecutive years leading up to March 31, 2018, representing
a high level of shareholder returns. Looking ahead,
MARUI GROUP will be gradually shifting the focus ofHigh Growth Coupled with High Returns

In addition, we plan to issue higher dividends for the seventh consecutive year with dividends of ¥47 based on
our new shareholder return policies. The Company willalso acquire ¥7.0 billion worth of treasury stock in thisyear. In May 2018, MARUI GROUP canceled 10 million
shares of acquired treasury stock.

For the fiscal year ended March 31, 2018, we raised dividend payments by ¥5 per share, to the record high of¥38 per share. In the fiscal year ending March 31, 2019,MARUI GROUP will target record-breaking EPS of¥109.9 through income growth and capital measures.

Previously• Acquired ¥85.0 billion worth oftreasury stock in four years
beginning with the fiscal yearended March 31, 2015
• Raised target for consolidated
payout ratio to 40% or more in
the fiscal year ended March 31,
2017• Achieved total return ratio
exceeding 100% for four consecutive years leading up toMarch 31, 2018

¥130

Record highor more

Shareholder Returns: Amounts and Indicators(Forecast)
227%

125%

112%

Total return ratio
31%
Consolidated
payout ratio

32%

148%

32%

31%

41%

41%

¥110

7.6%

(Forecast)

Consolidated
payout ratio

Approx.

6.7%
6.0%
4.5%

5.0%

55%

5.2%
¥35.0billion

ROE
Share buybacks¥15.0 billion¥20.0billion

Dividends¥93¥15.0billion¥4.1 billion¥4.9 billion¥5.1 billion¥5.4 billion¥7.6 billion¥8.5 billion

FY2013

FY2014FY2015FY2016FY2017FY2018¥47Earnings per share(EPS)¥80¥38(Forecast)

¥71
¥33
¥59

40%
or more¥56

Going Forward• Gradually shift the focus ofshareholder returns from sharebuybacks to dividends beginningin the fiscal year ending March
31, 2019• Target a total return ratio of
approximately 70% to maintainan equity ratio of 30% goingforward• Aim for a consolidated payout
ratio of 55% and move toward
this ratio in a phased manner¥48

Forecasts for Shareholder Returns: Amounts and Indicators
70%

Total return ratio
72%

55%

¥19

Cash dividends
per share¥1843%
Consolidated
payout ratio
8.6%
ROE

¥15

Share buybacks¥7.0 billion

FY201930%

or more10%

Dividends¥10.3billion

88

¥22

FY2020

FY2021

FY2022

FY2030FY2013

FY2014FY2015FY2016FY2017FY2018FY2019(Forecast)

Consolidated
payout ratio

31.0%

32.0%

32.3%

31.1%

41.1%

40.8%

42.8%

Total return ratio

31.0%

32.0%

125.3%

227.5%

147.5%

112.3%

71.9%

Share buybacks——¥15.0 billion ¥35.0 billion ¥20.0 billion ¥15.0 billion ¥7.0 billion

FY2020(Forecast)

FY2021(Forecast)—

Phased increase toward 55%
Total return ratio target of 70%

FY203189