MEDIUM-TERM MANAGEMENT PL AN

I mpact
Our desired impact constitutes
MARUI GROUP’s declaration of thecourse it will take as a company
leading up to 2050.

02
Bu si n e ss S t ra t e g y
Our business strategies will beadvanced through a business model
merging retailing, fintech, andforward-looking investments.

CAP ITAL PO LICY

01

BUSI NESS ST RAT EG YOUR IMPACT

THREE PILLARS OF MEDIUM-TERM MANAGEMENT PLAN

03
C apit al Po lic y
We have revised our targeted balance
sheet and capital allocations to better
facilitate the accomplishment of
our financial and non-financial KPIs.

The medium-term management plan covering the period concluding with the fiscal year ending March 31, 2026,
introduces the new element of impact alongside the prior focal points of business strategy and capital policy.

07

MARUI GROUP’s KEY PERFORMANCE INDICATORSThe new medium-term management plan defines the following targets for KPIs to be accomplished through the synergies of the plan’s business strategies, capital policies, and impact-related initiatives.
This report will offer a look at the specific initiatives to be implemented in pursuit of these targets.

EPS of ¥200.0 or more

ROE of 13.0% or more

CO2 emissions reductions of
1 million t-CO2 or more

ROIC of 4.0% or more

1 million t-CO2¥200.0or more

200

20

4.2

4.0%
or more13.0%¥140.0or more¥117.0or more

100

10.0%

3.8%

8.8%

350,000
t-CO2

3.7%

170,000
t-CO2

0

FY2020

FY2024(Target)2020 年 3 月期（実績）2024 年 3 月期

FY2026(Target)2026 年 3 月期

0

FY2020

FY2024(Target)2020 年 3 月期（実績）2024 年 3 月期

FY2026(Target)2026 年 3 月期

3.5

FY2020

FY2024(Target)2020 年 3 月期（実績）2024 年 3 月期

FY2026(Target)2026 年 3 月期

0

FY2020

FY2024(Target)2020 年 3 月期（実績）2024 年 3 月期

The Company began applying the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) effective April 1, 2021. Figures for the fiscal years ended March 31, 2020 and 2021, have been restated to reflect this change.

08

FY2026(Target)2026 年 3 月期

O U R I M PA C T

MARUI GROUP’s COURSE FOR THE FUTUREMARUI GROUP has defined its desired impact, the changes it hopes to promote in society and the effect it aims to have, which constitutes a declaration of the course it will take leading up to 2050.
Specifically, we have put forth three impact targets—creating a future for future generations together, creating happiness for individuals, and creating platforms for co-creation—which have beenbroken down into concrete priority measures and initiatives. This desired impact complements the MARUI GROUP’s previously defined mission and vision by presenting a clear course for theCompany to take in the future.

01
I M PA C T

ThemesCreating a future for
future generations together

Priority Measures

Initiatives

Realization of a carbon-free society

Reduction of emissions from society throughco-creation with customers

Creation of a circular economy

Reduction of social waste through co-creation
with business partners and customers

Assistance for self-actualization

Support for next-generation companies

Creating happiness for individuals

New business creation and co-creative investments
Support for individual preferences

Provision of venues for co-creation

Creating platforms for co-creation

Provision of financial services founded onprinciple of co-creation of creditability

Facilitation of work styles that are transparent toboth internal and external stakeholders

Development of credit cards for whichcardholders feel a strong affinity
Utilization of stores as venues for co-creation
Positioning of credit cards as venues for co-creation
Promotion of open innovation
Cultivation of innovation organizations

For more details on MARUI GROUP’s impact targets, please refer to page 18 of Co-Creation Management Report 2021.
www.0101maruigroup.co.jp/en/ir/pdf/i_report/2021/i_report2021_en4.pdf

09

01_OUR IMPACT

New Corporate Governance TeamNEW DIRECTORSMARUI GROUP invites stakeholders to participate in the Board of Directors, its coremanagement body, as part of practicing governance with a focus on our six stakeholder groups.* In June 2021, as the first step of this process, we appointed two new
external directors—Yasunori Nakagami, representative director and CEO of Misaki
Capital Inc., who is meant to act as a representative for shareholders and other investors, and Peter David Pedersen, a sustainability expert and representative director of
Next Leaders’ Initiative for Sustainability. Also at this time, well-being specialist andYasunori NakagamiPeter David Pedersen

Reiko Kojima

company physician Reiko Kojima was appointed as an internal director. In addition,

Representative Director and CEO,Misaki Capital Inc.

Representative Director,
Next Leaders’ Initiative for Sustainability
Professor, Shizenkan University

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

Kyoko Ozawa and Sota Watanabe, both members of younger generations, wereappointed as our new external specialist advisors. This new team is anticipated to
be a strong asset toward accomplishing our desired impact.

NEW ADVISORS* For more details on MARUI GROUP’s governance focusing on six stakeholder groups, please refer topage 88 of Co-Creation Management Report 2021.
www.0101maruigroup.co.jp/en/ir/pdf/i_report/2021/i_report2021_en26.pdf

Kyoko Ozawa

Sota Watanabe

University Freshman
First Chief Future Officer, euglena Co., Ltd.

CEO, STAKE TECHNOLOGIES PTE. LTD.
Director, Japan Blockchain Association

As of December 2021

10

U S I N E S S S T R AT E G

BUSINESS STRATEGIESFOR ACHIEVINGPOSITIVE IMPACT

Forward-Looking
Investments
Internal new business investment

Business Merging Retailing, Fintech,

02
BUSINESSS T R AT E G Y

Outward co-creative investment

and Forward-Looking Investments
For MARUI GROUP, corporate value entails creating harmony between the interestsand happiness of all of our stakeholders and growing the intersection of these interests and happiness. We are therefore committed to improving corporate value andresolving social issues through co-creation with stakeholders in order to have apositive impact on society.
Efforts on this front going forward will be advanced under a new business modelthat includes the third pillar of forward-looking investments along with the prior pillarsof retailing and fintech founded on our core value—the co-creation of creditability.
By pursuing synergies through this business model, we aim to generate value that

Retailing

Fintech22 physical stores
Reliability of MARUI brand
Annual visits by
200 million customers
Retailing anddistribution staff

More than 7 million
EPOS cardholders
Credit expertise
Stable financial base
IT and system staff

is greater than the sum of its constituents.

PHILOSOPHY
Continue evolving to better aid our customers
Equate the development of our people with the development of our company

VALUES
Creditability should be built together with customers
Pioneer spirit of creating opportunities

11

RETAILING

Rapid Evolution Toward Stores That

02_BUSINESS STRATEGY

Evolution of Department Stores

Do Not Sell and Eventful Stores?

5

The transition to shopping centers and fixed-term rental contracts was a priority mea-

4

sure under the previous medium-term management plan. MARUI GROUP targeted a
100% transition rate during the period of this plan, a target we quickly met with aStores that do not sell

3transition rate of 106% in the fiscal year ended March 31, 2019. However, even withthis success, we failed to achieve the targeted income improvements as a result of

Expanded range of food vendors and service providers

2

the sluggish performance of apparel items through e-commerce channels and directly
operated sales floors.

Fixed-term rental contracts

1

In the Retailing segment, an opaque outlook remains with regard to commercial real

Eventful stores

estate as a result of the COVID-19 pandemic. MARUI GROUP looks to overcome theadversity by fully accelerating its evolution of the department store business model.
Specifically, we are promoting stores that do not sell and eventful stores. Stores that
do not sell involve forward-looking store development efforts advanced through cocreation with tenants whose businesses have predominately been confined to online

Operating Income

venues thus far. Eventful stores involve arranging an increasingly broad spectrum of
events that support people pursuing their interests, such as anime. These stores also¥12.0 billion

serve as avenues for improving the value of our retailing facilities through coordination
with the FinTech segment. Accelerating this evolution will no doubt contribute to the¥10.0 billion¥9.0 billion

growth of tenants as well as to the development of physical stores that capture thehearts of wider swaths of customers. MARUI GROUP aims to achieve ongoing earnings growth through this approach with the goal of posting operating income of ¥12.0
billion in the fiscal year ending March 31, 2026.
¥1.5 billion
FY2020

FY2021¥2.0 billion

FY2022

FY2024(Target)Medium-term management plan

12

FY2026(Target)02_BUSINESS STRATEGYRETAILING

Transition to Stores That Do Not Sell, Positioning Them

Fun Eventful Stores Offering New Discoveries

as a Platform for Merging Online and Offline Spaces

for Supporting the Pursuit of One’s Interests

In its efforts to create the stores of the future, MARUI GROUP is transitioning to stores that do not sell through means

At eventful stores, we arrange a variety of events related to content, like anime and video games, as well as to newsuch as collaborating with tenants who started their business online and attracting tenants that provide food, services,businesses. These events are meant to draw customers to these stores, which function as outlets for supportingor experiences.

people in pursuing their interests.

Tokyo Revengers Event

Mercari Station

Exhibition events commemorating the release of the Tokyo Revengers movie were
held at Shibuya Modi, Hakata Marui, and Namba Marui. The many visitors drawn
to the events were treated to exhibits related to the live action movie adaptationof this anime series along with the opportunity to purchase merchandise featuring anime artwork that was produced specifically for this event.

Mercari Station is a physical venue associated with the Mercari peer-to-peersales app that has services appealing to first-time and heavy app users
alike. Here, customers can learn how to put their items up for sale as wellas get tips for greater success in sales. There are even photograph boothsthat can be used to take more appealing pictures of items to be sold.

Ken Wakui, Kodansha Ltd., Tokyo Revengers Movie Production Committee, 2020

SHIBUYA BASE

Gluten-Free and Vegan Confections

SHIBUYA BASE is a space at which e-commerce brands that use the BASE
online shop creation service can sell their products in a physical environment
over limited-time periods. This physical venue allows prospective customers
to learn about brands and to actually see and touch their products before
purchasing. Moreover, SHIBUYA BASE offers e-commerce brands seeking toopen physical stores an opportunity to try their hand at store operation without
paying the fees that would normally be necessary to open stores.

An event was held at a MARUI GROUP store at which we sold particularly
popular offerings from among the brands provided by the vee ga boo vegan
confection mail order service. This event featured a lineup of more than 150
products including exclusive items and those not available through mailorder centered on confections that do not contain wheat, milk, or eggs,
tracking a wide variety of customers, with and without allergies.

KOREAJUFABRIC TOKYOKOREAJU is a South Korean cosmetic boutique that primarily sells its
products through online venues. Regular KOREAJU events are held at
MARUI GROUP stores. These events have received a lot of positive attention for the testing stations that let visitors try out South Korean cosmetic
products at their leisure as well as for the opportunity to interact withmembers of the staff who share their love for these products. In fact, somecustomers have even gone as far as to state their desire for these cosmetics to become a constant fixture.

FABRIC TOKYO Inc. opens physical outlets for its direct-to-consumer (D2C),
made-to-order suit brand in MARUI GROUP stores. At locations in Shinjuku
Marui Main Building and other facilities, customers are able to experience
the entire custom-ordering process, encompassing such steps as measuring and choosing materials and fabric. Moreover, the data from measurements taken in-store can be used for subsequent purchases either at
physical stores or online.

13

FINTECH

02_BUSINESS STRATEGY

Growth Driven by Trend

Credit Card Transactions*

Toward Cashless Payments* Total of card shopping transactions andMore than double
Average annual
growth rate

rent guarantee services

16%

MARUI GROUP’s credit card transactions have shown an average growth rate of 15% overthe five-year period beginning with the fiscal year ended March 31, 2017, surpassing the

Average annual
growth rate

domestic market average during this period. As a result, credit card transactions amounted
to ¥2.6 trillion in the fiscal year ended March 31, 2021, the final year of the previous
medium-term management plan. The COVID-19 pandemic forced people to stay at home

¥5.3 trillion

15%¥3.1 trillion¥2.6 trillion¥1.6 trillion

and stores to close and thus placed downward pressure on transactions related to travel,
entertainment, and large-scale commercial facilities. However, we were able to compensate for these negative impacts thanks to the benefits of our ongoing efforts to encouragecustomers to use their EPOS cards for rent and other recurring payments as well as

FY2017

FY2021through strong growth in the use of credit cards for e-commerce purchases. This strategy
of maximizing the share of EPOS card payments in relation to household finances with afocus on rent, other recuring payments, and e-commerce has led transaction volumes to

FY2022

FY2026(Target)Medium-term management plan

Operating Income

double from the level of the fiscal year ended March 31, 2016. Transactions associatedwith this strategy have thus come to represent 46% of credit card transactions. One component of these transactions is rent guarantee services. The volume of transactions forthese services has been growing by 26% a year on average, generating revenue of ¥10.0¥41.2 billion¥38.2 billion¥46.0 billion¥53.0 billion

billion, due to the progress of joint initiatives with a major partner.
The credit card market is expected to enjoy an average annual growth rate of 8% over

¥20.2 billion

the coming five years, due in part to the favorable environment created by the trend towardcashless payments, and the scale of this market is thus projected to surpass ¥100 trillion
in the fiscal year ending March 31, 2025. In this promising environment, MARUI GROUP
looks to maintain high growth rates that outpace the market by taking advantage of themarket growth while also growing through its own efforts. Accordingly, we have set the

FY2020target of achieving credit card transactions of ¥5.3 trillion, more than double the level of the

FY2021

FY2022

FY2024(Target)Medium-term management planfiscal year ended March 31, 2021, and thereby generating operating income of ¥53.0 billion
in the fiscal year ending March 31, 2026.

14

FY2026(Target)02_BUSINESS STRATEGYFINTECH

Assistance for Self-Actualization

Credit Cards Offering Support for Pursuing Interests

In April 2021, our EPOS cards were redesigned to incorporate a new non-contact payment feature using Visa Touch.

We have received resoundingly positive response from customers for our anime, video game, and other collaboration cards

We anticipate that this feature will drive growth in small-sum payments at convenience stores and other locations.

that support people in pursuing their interests. For example, while such collaboration cards only accounted for aroundAround the same time, we also launched our lifestyle app that allows users to customize their services and functions

30,000 of our 6.4 million EPOS cardholders in the fiscal year ended March 31, 2017, this number had risen to 450,000 of thebased on their lifestyle. The massive improvement to the user experience provided by this app is expected to contrib-

7.1 million cardholders in the fiscal year ended March 31, 2022. Cards that support people in pursuing their interests are

ute to growth in lifetime value. We also project that the new EPOS card together with the lifestyle app will drive

highly compatible with expression via YouTube, social media, and other online venues, and thereby help attract passionate

increases in transaction volumes.

fans by offering an incentive to sign up that goes beyond the financial benefits. Going forward, MARUI GROUP will bolster its
lineup of in-store and online events while also expanding its range of cards that support people in pursuing their interests
with the goal of having these cards held by more than one million customers by the fiscal year ending March 31, 2026.
Click here to register for lifestyle app(in Japanese only).
www.eposcard.co.jp/appli/index.html

New EPOS cards

Lifestyle app©2022 San-X Co., Ltd. All Rights Reserved.

©2022 San-X Co., Ltd. All Rights Reserved.

©khara, inc.

©naganoEarnings Generated Together with Positive Impact
through Renewable Energy

Entry into Buy Now, Pay Later Market through

MARUI GROUP has teamed up with UPDATER, Inc., to encourage EPOS cardhold-

Digital Transformation and Evolved User Experiences

ers to switch to renewable energy with the goal of reducing CO2 emissions, both

A category of fintech services that has been showing substantial growth in recent years is the so-called “buy now,inside and outside of the Company, by more than one million tons by the fiscal

pay later” services. These services, which allow for payments to be made at a later date after a purchase, are growing

year ending March 31, 2026. Moreover, as customers use their EPOS cards to pay

together with e-commerce and digital wallet services, and are therefore expected to transform the payment service

their monthly electricity bills, it will contribute to the advancement of our strategy

market over the next five to 10 years. Moreover, digital transformation has the potential to optimize “buy now, pay later”

of maximizing the share of EPOS card payments in relation to household
finances while also potentially contributing to earnings growth as customers
increasingly use their EPOS card as their main credit card. In this manner, thisservices and thereby grant these services an increased presence in both online and offline payment service markets.

Minna-denryoku EPOS Card, the firstcredit card in Japan to be made ofrecycled plastic

Seeking to capitalize on this opportunity, MARUI GROUP introduced a new pay later function for use with its EPOS
cards. We also partnered with a start-up company founded by Generation Z individuals with the goal of promoting

co-creative initiative for reducing CO2 emissions together with customers will

digital transformation and further evolving user experiences.

generate earnings with a positive impact on society.

15

FORWARD-LOOKING INVESTMENTS

02_BUSINESS STRATEGY

Positive Impact and Earnings Generated
through Synergies with Existing Businesses

Forward-Looking Investments

Forward-looking investments are a new element of MARUI GROUP’s business model thatare largely divided into two types: new business investments and co-creative investments.
Central to the model for our new businesses is e-commerce. MARUI GROUP is endeavoring to attract fans of its services through websites, social media, and owned media. At
the same time, we are combining pop-up store events in MARUI GROUP stores and credit
card payment services in a manner that merges the strengths of our existing retailing andfintech businesses in order to create business models with high barriers to entry.
Co-creative investments are aimed at the co-creation of value based on the co-creative
philosophy that MARUI GROUP has embraced since its founding. We have, for example,
identified D2C brands as an investment area warranting particular attention. D2C brands
employ a new business model entailing direct connections between consumers andbrands through directly operated e-commerce websites or social media. In this area, we

New Business
Investments

Co-Creative
Investments

Generation ofinternal innovation

Incorporation of
external innovation

have established D2C&Co., through which we are investing in D2C start-up companies.
These co-creative investments differ from traditional M&A activities, which target quick
returns, in that they are more oriented toward contributing to earnings in existing business while producing medium- to long-term financial returns.
Through these two approaches toward investment, MARUI GROUP will strive to produce innovation inside and outside of the organization and thereby generate positive
impacts on society along with earnings. A total of ¥22.3 billion was invested in thismanner over the period spanning the fiscal years ended March 31, 2017 to 2022, andwe intend to raise the aggregate amount of investments to ¥43.0 billion leading up to
the fiscal year ending March 31, 2026.

Achievement of earnings growth together with desired impact(Sustainability, well-being, and digital transformation)

16

02_BUSINESS STRATEGYFORWARD-LOOKING INVESTMENTS

Improved Competitiveness of Stores That Do Not Sell

Large Earnings Contributions from Synergies

through Co-Creative Investmentswith Co-Creative Investees

MARUI GROUP’s strategy of developing stores that do not sell entails a three-layered approach comprising retailing,

The combined earnings contributions from co-creative investments aimed at stimulating innovation outside of thefintech, and co-creative investments. The revenues from this strategy are generated in the forms of rent revenues,

Company and from the growth of store rent revenues and credit card lifetime value amounted to ¥0.7 billion in thecredit card lifetime value, and financial returns, with the amount of said revenues growing larger in that order. At the

Retailing segment and ¥0.3 billion in the FinTech segment in the fiscal year ended March 31, 2022. Future initiatives onlowest level, contained within the Retailing segment, this strategy may be relatively easy to imitate. However, this

this front will be oriented toward generating synergies. In the Retailing segment, these synergies will be pursued bybecomes more difficult as an additional layer is introduced into the strategy through the business model merging

encouraging co-creative investees to become tenants in our stores. In the FinTech segment, we will focus on promot-

fintech and retailing that the Company has developed since its founding. A third layer is added to this strategy throughing the use of EPOS cards for purchases from co-creative investees while producing collaboration cards with theseco-creative investments, and this layer brings with it a jump in competitiveness. The resulting three-layered strategy ofpartners. We thereby aim to generate total earnings contributions from the Retailing and FinTech segments of ¥5.5 billion

stores that do not sell makes for a business with an exceptionally high barrier to entry.

in the fiscal year ending March 31, 2026, an increase of more than tenfold from the fiscal year ended March 31, 2021.

Three-Layered Strategy of Stores That Do Not Sell

Earnings Contributions from Co-Creative Investments*1

Business Structure

Earnings Structure*1 Included in the operating income of the Retailing segment and the FinTech segment

Barrier to Entry¥5.5 billion
FinTechCo-Creative
Investments¥4.0 billion

Financial Returns¥0.5 billion

FintechRetailing

Credit Card
Lifetime ValueFY2021¥1.0 billion

Retailing¥1.5 billion
FY2022

FY2026 (Target)

Internal Rate of Return*2

Rent
Revenues

FY202227%

Hurdle Rate

10%Internal rate of return of 27%, exceeding hurdle rate of 10%*2 Rate calculated using recent procurement prices for non-listed stocks and based on amounts if listed stocks were to be sold on March 31,
2022, for applicable securities

Low Medium High17

C A P I TA L P O L I C YDEVELOPMENT OF OPTIMAL BALANCE SHEETMATCHED TO BUSINESS STRUCTURE REFORMS
At the time of formulation of the previous medium-term management plan, MARUI GROUP was supported by its credit card business, which has been consistently generating earnings since
the launch of the EPOS card in 2006. This situation made for a business structure through which the Company was able to sustain steady growth. The targeted balance sheet defined in thisplan was based on the transition to this business structure driven by the FinTech segment. As a result of this emphasis, we were able to build the balance sheet we targeted by optimizing the03
C A P ITA L

capital structure in this segment.
The balance sheet we are targeting in the fiscal year ending March 31, 2026, the final year of the new medium-term management plan, will require us to optimize the capital structure of the Retailingsegment, which generates stable cash flows. Our balance sheet will also see a large shift in the ratio of capital allocations from tangible assets to intangible assets in conjunction with the creation of a
new business model incorporating forward-looking investments. The forward-looking investments driving this shift, which include co-creative investments and new business investments, have thepotential to produce significant returns, but also carry significant risks. For this reason, we intend to limit the amount of assets associated with forward-looking investments to the scope of shareholders’ equity. With this focus, MARUI GROUP will reorient its investments toward intangible assets with the goal of improving corporate value by evolving into an intellectual creation company.

Balance Sheet Targeted under Medium-Term Management PlanPOLICY

FinTech¥1.2 trillion

Equity ratio

Approx. 25%

Optimization ofequity ratio

Equity ratio¥900.0 billion

Approx. 10%

Forward-Looking
Investments

Retailing

70%

40%

¥250.0 billion

Completely
within scope ofshareholders’ equity¥290.0 billion¥120.0 billion¥100.0 billion¥70.0–¥80.0 ¥70.0–¥80.0
billionbillionTotal assets Shareholders’equityTotal assets Shareholders’equityTotal assets Shareholders’equityTotal assets Shareholders’equityFY202618

03_CAPITAL POLICY

Shift Toward Investment in Intangible Assets

Capital Allocation Plan (April 1, 2021–March 31, 2026)

In the fiscal year ended March 31, 2019, the amount invested in intangible assets
surpassed the amount invested in tangible assets. Moreover, investments in intangible
assets in the fiscal year ended March 31, 2020, were 7.6 times higher than in the fiscal
year ended March 31, 2015, and twice the amount invested in tangible assets. Our

Growthinvestments

portfolio of intangible assets will be growing over the five years following the fiscal
year ended March 31, 2022, as we have earmarked ¥80.0 billion of the core operating
cash flow to be generated over this period for forward-looking investments and other

Investments in existing
businesses:¥50.0 billion

Forward-looking investments:¥30.0 billion

growth investments in intangible assets. In addition, we plan to allocate ¥50.0 billion toshare buybacks for the purpose of optimizing our capital structure and ¥100.0 billion toshareholder returns, which will comprise ¥80.0 billion in dividend payments and an
additional ¥20.0 billion in share buybacks.

Core operating
cash flow

Amounts of Investment in Tangible and Intangible Assets¥230.0 billion

Capitaloptimization

Share buybacks:¥50.0 billion

Investments inintangible assets¥13.1 billion

Shareholder
returns

Investments intangible assets¥5.8 billion

FY2008FY2019FY202219

Dividend payments:¥80.0 billion
Share buybacks:¥20.0 billion

03_CAPITAL POLICY

Redefinition of Human Capital Investments

Human Capital Investments

Investments in human resources under the previous medium-term management plan
were primarily limited to education and training purposes. However, we have since

35%

reframed these investments as human capital investments, and half of the personnel
expenses for co-creative teams, for employees involved in new businesses, and forseconded employees, which were previously considered R&D expenses, will becounted as human capital investments going forward. This new definition for humancapital investments also includes the personnel expenses incurred during the first year

Ratio of human capital investments
to total personnel expenses¥12.0 billion

22%

after employees have undergone intra-Group profession changes as well as investments in okos Co., Ltd., an incubation company (see figure below). The total level ofhuman capital investments is scheduled to be raised to ¥12.0 billion in the fiscal year
ending March 31, 2026. These investments are projected to account for 35% of all
personnel expenses, an increase from the ratio of 22% seen in the fiscal year ended
March 31, 2022. As we expand human capital investments anticipated to contribute to¥7.7 billion

future earnings, we will pursue medium- to long-term improvements in corporate value,as opposed to single-year earnings.

Breakdown of Human Capital Investments (FY2022)
Others• Personnel expenses incurred during firstyear after intra-Group profession changes• Investments in okos Co., Ltd.

Research and development expenses• New business-related personnel expenses• Co-creative team-related personnel expenses• Personnel expenses related to seconded employees

Human resource investments• Education and training• Medium-Term Management Visionary Committee, project teams, participation in initiatives¥4.5
billion¥2.2
billion¥1.0
billion

Human capital
investments¥7.7 billion
FY202220

FY2023(Target)FY2024(Target)FY2025(Target)FY2026(Target)03_CAPITAL POLICY

Pursuit of High Growth Coupled with

Dividends and Share Buybacks

Consistent,
long-term increases
in dividends

High Returns

Total return ratio of 70%
Payout ratio of 55%

The capital policies implemented for the purpose of achieving our targeted balance
sheet have enabled us to achieve an optimal capital structure in which return on equity¥30.0 billion(ROE) consistently surpasses cost of shareholders’ equity, and return on invested
capital (ROIC) exceeds weighted average cost of capital (WACC). Meanwhile, MARUIGROUP is targeting high growth coupled with high returns through ongoing dividend
increases in conjunction with long-term growth in earnings per share (EPS). For the
fiscal year ended March 31, 2022, the Company issued annual dividend payments of¥52 per share, while share buybacks totaling ¥30.0 billion were conducted in this fiscal
year. Going forward, consistent, long-term increases in dividends will be implemented
with the goal of achieving a payout ratio of 55% and a total return ratio of 70% in thefiscal year ending March 31, 2026, the final year of the medium-term management plan.
Dividends
per share

¥51

¥50

Capital Efficiency Indicators
FY2020

FY2024 (Target)

FY2026 (Target)

EPS (yen)

117.0

140.0

200.0

ROE (%)

8.8

10.0

13.0

Cost of shareholders’ equity (%)

6.9

8.0

8.0

ROIC (%)

3.7

3.8

4.0

WACC (%)

3.0

3.4

3.4

¥52

Share
buybacks¥7.0 billion

FY202021

FY2021

FY2022

FY2026(Target)11-YEAR FINANCIAL AND NON-FINANCIAL SUMMARYMARUI GROUP CO., LTD., and its consolidated subsidiaries
Millions of yen
FY2012
Total Group transactions*2

FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2022*1

FY2021——

1,297,250

1,469,111

1,703,353

1,933,685

2,189,374

2,539,631

2,903,713

2,919,231

Retailing*3

—

—

—

—

341,478

326,327

328,486

337,006

320,119229,207245,255

FinTech*

—

—

—

—

1,473,539

1,723,254

1,972,482

2,310,635

2,678,839

2,760,432

3,200,536

—

—

—

—

(111,664)(115,896)(111,594)(108,010)(95,245)(70,409)(72,345)——

253,077

249,847

245,867

237,022240,469

251,415

247,582

206,156

209,323

3

Eliminations
Total operating revenues*4

3,373,446

Revenue*4

412,408

407,366

416,460

404,947

—

—

—

—

―

―

―

Gross profit

147,240

148,172

156,642

159,448

160,035

165,964

175,875

190,502

195,666

177,326

181,073
144,288

Selling, general and administrative expenses

129,224

123,886

129,495

131,406

130,419

134,711

139,509

149,317

153,721

162,103

EBITDA*5

33,08535,237

37,13438,33839,286

41,374

46,64051,095

51,13525,70648,006

Operating income

18,01524,28527,14628,042

29,61531,25336,365

41,18441,944

15,22336,784

Net income attributable to owners of parent

5,251

13,255

15,40916,036

17,771

18,72420,90725,341

25,396

2,327

17,791

—
—

—
—

—
—

—
—

10,65823,094

7,759
27,111

8,826
31,433

11,42135,01810,02738,3991,481
20,201

1,963
41,220

Segment income*3
Retailing*3
FinTech*3
Retailing and Store Operation

7,547

9,885

10,562

8,074

7,856

—

—

—

―

―

―

Credit Card Services
Retailing-Related Services

10,6192,567

13,177
3,792

15,634
4,523

20,126
3,333

22,186
3,674

—
—

—
—

—
—

―
―

―
―

―
―

Recurring gross profit*6

—

—

—

—

—

—

—

122,660

131,099

123,599

127,587

Ratio of recurring gross profit (%)*7
Contracted future recurring gross profit*8

—
—

—
—

—
—

—
—

—
—

—
—

—
—

62.9
327,72665.3
350,02068.1
333,955

68.8
337,647

Total assets

615,130

624,173

664,019675,627

730,126

806,575

865,887

890,196885,969

901,231920,026

Shareholders’ equity

289,975

303,637

315,446

306,795

281,610

273,883

274,434

284,752

289,792

289,579

261,614

Installment sales accounts receivable

142,995

171,187

213,466

227,121279,763

348,191

402,030

428,180

416,250

426,668

457,624

Consumer loans outstanding
Interest-bearing debt

132,280
245,175

123,739
243,762

125,215
264,824

128,030
277,839

134,107359,324

140,569
434,327

146,011
485,331

137,473486,632

139,313479,835

118,039
484,580

114,049
527,156

Net cash provided by (used in) operating activities

24,897

5,111(9,227)

12,310(35,310)(45,955)(19,329)

26,39639,90922,193

11,519———25,484

26,78828,18835,85338,67639,03820,59738,547

Net cash provided by (used in) investing activities(3,913)435(6,791)(3,867)(4,063)

1,995

747

(9,232)(20,315)(16,241)(13,760)

Core operating cash flow*9 *10
Net cash provided by (used in) financing activities(23,660)(5,571)

16,141(7,267)40,71947,63027,773(15,880)(25,487)(5,600)770

Cash and cash equivalents

29,92829,94030,05331,22932,57536,24545,437

46,72040,827

41,17939,708

Capital investments
Depreciation and amortization

7,941
15,069

7,665
10,951

11,2389,988

9,786
10,296

12,882
9,670

15,696
10,121

10,25010,274

9,094
9,911

10,4689,191

10,522
10,482

8,506
11,221

Earnings per share (yen)

19.19

48.43

56.29

58.87

70.68

80.24

93.18

115.99117.58

10.58

85.81

Net assets per share (yen)

1,059

1,109

1,152

1,166

1,161

1,196

1,245

1,310

1,352

1,351

1,307

Cash dividends per share (yen)

14.0

15.0

18.0

19.0

22.0

33.0

38.0

49.0

50.0

51.0

52.0

Payout ratio (%)
Total return ratio (%)

73.0
73.0

31.0
31.0

32.0
32.0

32.3
125.3

31.1
227.5

41.1
147.5

40.8
112.3

42.2
69.9

42.5
70.1

482.3
483.5

60.6
228.5

22

Millions of yen
FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2022*1

FY2021

Operating income margin (%)*11

4.4

6.0

10.7

11.2

12.0

13.2

15.1

16.4

16.9

7.4

Return on equity (%)

1.8

4.5

5.0

5.2

6.0

6.7

7.6

9.1

8.8

0.8

6.5

Return on invested capital (%)

2.1

3.0

3.0

3.3

3.3

3.1

3.3

3.7

3.7

1.4

3.3

17.6

Return on assets (%)

2.8

3.9

4.3

4.2

4.1

4.1

4.2

4.5

4.6

1.6

3.9

Equity ratio (%)

47.1

48.6

47.5

45.4

38.6

34.0

31.7

32.0

32.7

32.1

28.4

Stock price at year-end (yen)Market capitalization (including treasury stock)(billions of yen)

690

975

885

1,365

1,613

1,513

2,168

2,235

1,815

2,079

2,250

2,198

3,106

2,820

3,803

4,494

3,535

5,066

4,999

4,059

4,649

4,694

Price earnings ratio (times)

36.0

20.1

15.7

23.2

22.8

18.9

23.3

19.3

15.4

196.6

26.2

Price book-value ratio (times)
Number of common shares issued(including treasury stock)
Number of shares of treasury stock

0.7

0.9

0.8

1.2

1.4

1.3

1.7

1.7

1.3

1.5

1.7

318,660,417
44,947,345

318,660,417
44,948,289

318,660,417
44,901,353

278,660,417
15,588,364

278,660,417
36,270,334

233,660,417
4,704,750

233,660,417
13,269,506

223,660,417
6,214,767

223,660,417
9,248,452

223,660,417
9,249,279

208,660,417
8,503,136

Total number of employees

6,218

6,101

5,966

5,918

5,899

5,732

5,548

5,326

5,130

4,855

4,654

Ratio of female employees (%)

44.4

44.3

44.5

44.6

45.5

45.1

44.4

43.9

44.8

44.1

44.7

—

6.3

7.5

8.7

9.1

10.0

11.2

12.6

13.3

14.5

16.5

―

―

10

18

59

74

84

100

100

100

100

—

2.8

2.3

2.0

2.1

3.2

3.1

3.6

5.7

2.6

2.9

487

498

542

591

613

636

657

688

720

709

714

―

―

―

―

―

65.3

65.9

65.9

65.5

63.0

64.6

―

2.32

1.84

1.68

1.57

1.45

1.60

1.80

1.88

2.09

1.81

27
458.4

27
453.1

27
446.5

27
444.0

28
441.8

27
452.1

26
439.8

25
425.6

24
417.5

23
400.6

22
387.9

Women in management positions (%)*12
Ratio of applicable male employees acquiring
childcare leave (%)*13
Employee turnover rate
(excluding mandatory retirement) (%)
EPOS cardholders (including Akai Card)(ten thousands of members)
Ratio of active cardholders (%)
Ratio of bad debt write-offs (%)
Total number of stores*14
Total sales floor area (thousand m2)
Rate of renewable energy use (%)*15

—

—

—

—

—

0

0

1.1

23.0

52.1

60.9

GHG emissions (Scope 1) (t-CO2)*16 *17

17,291

10,727

13,044

12,58014,434

14,92013,818

15,10913,956

11,090

10,540GHG emissions (Scope 2) (t-CO2)*16 *17
GHG emissions (Scope 3) (t-CO2)*16 *17

79,050—76,039—106,085
550,612

98,637
530,595

89,179509,070

103,264
489,439

99,286412,256

96,232399,926

67,916352,640

37,858
256,682

29,983
258,224*10 In the fiscal year ended March 31, 2020, the calculation method for core operating cash flow was changed to include gain on transfer of liquidated receivables
and amortization of liquidated accounts receivable and others. The figure for the fiscal year ended March 31, 2019, has been restated to reflect this change.
*11 Operating income margin is calculated using operating revenues for the fiscal year ended March 31, 2013, and prior fiscal years and revenue for the fiscal
year ended March 31, 2014, and subsequent fiscal years.
*12 Figures represent the ratio of female employees in director, executive officer, and other management positions. Figures are as of April 1 of each year.
*13 Figures are calculated based on standards for basic employment equity surveys conducted by the Ministry of Health, Labour and Welfare and use theratio of male employees whose partner gave birth two fiscal years ago and who took childcare leave (including other leave taken for childcare purposes)in the past two fiscal years.
*14 From the fiscal year ended March 31, 2017, sites at which both a Marui store and a Modi store exist are counted as one store.
*15 Figures represent rates of renewable energy use for MARUI GROUP stores and offices.
*16 Scope 1 and Scope 2 represent greenhouse gas emissions from the Group. Scope 3 represents greenhouse gas emissions from areas including raw
material procurement, transportation, and use by customers. Third-party verification has been received from the Japan Quality Assurance Organization
for greenhouse gas emissions figures since the fiscal year ended March 31, 2017.
*17 In the fiscal year ended March 31, 2014, the scope of data collection was expanded to include the entire Group.

*1 The Company began applying the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) effective April 1, 2021.
Figures for the fiscal year ended March 31, 2021, have been restated to reflect this change.
*2 The “Eliminations” item, which is used to deduct card shopping transactions from figures for the Retailing segment, has been omitted.
*3 Beginning with the fiscal year ended March 31, 2017, the prior segments of Retailing and Store Operation, Credit Card Services, and Retailing-Related
Services were reorganized into the Retailing and FinTech segments.
*4 Beginning with the fiscal year ended March 31, 2016, the display method was changed from total value display to net value display, the portion that
represents income to the Company, for sales recorded through sale or return arrangements. In conjunction with this change, the previous “operating
revenues” line item was replaced with the new “revenue” line item.
*5 EBITDA (earnings before interest, taxes, and depreciation and amortization) = Operating income + Depreciation and amortization*6 Gross profit generated on a recurring basis through contracts with customers and business partners*7 Ratio of recurring gross profit = Recurring gross profit ÷ (Gross profit + Selling, general and administrative expenses paid by business partners)*8 Contracted future recurring gross profit represents the portion of recurring gross profit that can be expected to recur in subsequent fiscal years andis used as an indicator of revenue stability.
*9 Core operating cash flow represents net cash provided by (used in) operating activities less the increase in operating receivables.

23

DISCLOSURE MATERIALSManagement Policies
MARUI GROUP’s Co-Creation Philosophy
www.0101maruigroup.co.jp/en/ci/action.html
MARUI GROUP’s View on Corporate Value
www.0101maruigroup.co.jp/en/ir/management/value.html
VISION 2050
www.0101maruigroup.co.jp/en/ir/management/vision2050.html
Business Model
www.0101maruigroup.co.jp/en/ir/management/model.html
Messages from the Management Team
www.0101maruigroup.co.jp/en/ir/message/

Financial and ESG Information
Financial results summaries
www.0101maruigroup.co.jp/en/ir/lib/brief.html
Annual securities reports
www.0101maruigroup.co.jp/en/ir/lib/sec.html
FACT BOOKs (supplementary financial materials)
www.0101maruigroup.co.jp/en/ir/lib/fact.html
Monthly performance forecasts
www.0101maruigroup.co.jp/en/ir/lib/monthly.html
ESG DATA BOOKs
www.0101maruigroup.co.jp/en/sustainability/lib/databook.html

For more information on the medium-term management plan and MARUI GROUP’s initiatives, please refer to the following materials.

Sustainability website
www.0101maruigroup.co.jp/en/sustainability/
Initiatives related to the TCFD
www.0101maruigroup.co.jp/en/sustainability/vision2050/3business_02.html

Corporate Governance
MARUI GROUP Code of Conduct and policies
www.0101maruigroup.co.jp/en/sustainability/theme04/risk.html
MARUI GROUP Corporate Governance Guidelines
www.0101maruigroup.co.jp/pdf/cgg_20210805_en.pdf
Corporate Governance Reportwww.0101maruigroup.co.jp/pdf/cgr_en.pdf
Corporate officer backgrounds and reasons for appointment
www.0101maruigroup.co.jp/en/ci/officer/
Committee members
www.0101maruigroup.co.jp/pdf/committee_members_en.pdf
Shareholder return policies
www.0101maruigroup.co.jp/en/ir/stock/dividend.html
Shareholder benefits (in Japanese only)
www.0101maruigroup.co.jp/ir/stock/benefit/
Basic internal control policy (in Japanese only)
www.0101maruigroup.co.jp/ci/pdf/statement/int_control.pdf

Risk Management

GRI and ISO 26000 applicability tables
www.0101maruigroup.co.jp/en/sustainability/lib/gri.html

www.0101maruigroup.co.jp/en/sustainability/theme04/risk.html

Investors guides
www.0101maruigroup.co.jp/en/ir/lib/guide.html

Awards and Recognition

Financial results briefings and videos
www.0101maruigroup.co.jp/en/ir/lib/result.html

www.0101maruigroup.co.jp/en/ci/award/

Publications
Co-creation management reports
www.0101maruigroup.co.jp/en/ir/lib/i-report.html
VISION BOOK 2050 and co-creation sustainability reports
www.0101maruigroup.co.jp/en/sustainability/lib/s-report.html
Co-creation wellness reports (in Japanese only)
www.0101maruigroup.co.jp/sustainability/lib/w-report.html
Convocation notices for Ordinary General Meetings of Shareholders
www.0101maruigroup.co.jp/en/ir/stock/meeting.html
Co-creation newsletters (shareholders newsletters, in Japanese only)
www.0101maruigroup.co.jp/ir/lib/report.html

Videos (in Japanese only)
MARUI GROUP’s Vision for the Futurewww.youtube.com/watch?v=-WQZCdHfxno
MARUI GROUP’s Impact
www.youtube.com/watch?v=5tMScyyVb-o

Online Media and Social Media (in Japanese only)
MARUI GROUP’s community site—kono yubi to-marewww.to-mare.com/
kono yubi to-mare Twitter account
twitter.com/maruigroupkono yubi to-mare YouTube channel
www.youtube.com/channel/UCCHq6q2aRFTyyEwVOMxHYXA
Mailing list registration (in Japanese only)
www.0101maruigroup.co.jp/ir/infomail/reg.html
Contact
Public Relations Office, General Affairs Department
MARUI GROUP CO., LTD.
Tel: 03-3384-0101 (Receptionist) Email: koho-ml@0101.co.jp
Other contacts
www.0101maruigroup.co.jp/en/question.html

MARUI IR DAY materials and videos
www.0101maruigroup.co.jp/en/ir/lib/irday.html
Investor Relations website
www.0101maruigroup.co.jp/en/ir/

24