M A R U I G R O U P C O . , LT D

Financial Results Briefing for theF i s c a l Ye a r E n d e d M a r c h 3 1 , 2 0 2 2 ,And Future Outlook

May 12,2022

S c h e d u l e f o r t o d a y ’s p r e s e n ta t i o n1Overview of Performance and Segment Income in
Fiscal Year Ended March 31, 2022
Hirotsugu Kato, Director, Managing Executive Officer ,CFO

2

Human Capital-Focused Management
Hiroshi Aoi, President and Representative Director,
Representative Executive Officer, CEO1Overview of Performance and Segment
Income in Fiscal Year Ended March 31, 2022
Hirotsugu Kato,
Director,
Managing Executive Officer,
CFOO ve r v i ew of Pe r fo r ma n ce a n d S eg m e n t I n co m e
i n F i s ca l Yea r E n d e d M a rc h 3 1 , 2 0 2 2･ Consolidated･ Retailing･ FinTech･ Co-creative investment･ Impact･ Balance sheet and cash flow

Fu l l -Yea r Fo re cast fo r F i s ca l Yea r
E n d i n g M a rc h 3 1 , 2 0 23

O v e r v i e w o f Pe r fo r m a n ce a n d S eg m e n t I n co m e
i n F i s ca l Yea r E n d e d M a rc h 3 1 , 2 0 2 2･ Consolidated･ Retailing･ FinTech･ Co-creative investment･ Impact･ Balance sheet and cash flow

Full-Year Forecast for Fiscal YearEnding March 31, 2023
5

Highlights in Fiscal Year Ended March 31, 2022
1. Three main KPIs (EPS, ROE, and ROIC) greatly increased year on
year, meeting all targets, but EPS and ROE are at about 70% of thelevel in fiscal year ended March 31, 2020, while ROIC is at about90%
2. Total group transactions increased 16% year on year to a record
high of ¥3,373.4 billion
3. Consolidated operating income increased 140% to ¥36.8 billion(¥0.3 billion above target)

Net income rose approx. 700% to ¥17.8 billion(¥1.3 billion above target)

4. FinTech segment posted operating income of ¥41.2 billion, arecord high. Although Retailing segment achieved its target of¥2.0 billion, this is only approx. 20% of the level in the fiscal year
ended March 31, 2020

6

Main KPIs

（yen）

■ ROIC・WACC■ ROE・Capital costs

■ EPS
117.0

85.8

(VS. target
+6.2)

100

（％）

8.8%
8

4

50

（％）

ROE

7.8%

3.7%

7.7%

6.5%

Capital
costs
6.9%

ROIC

(VS. target+0.6%)

3.5%

3.5%

3.3%

3

(VS. target+0.1％)

WACC

3.0%

2

1.4%
10.6
FY2020 FY2021 FY2022

0.8%
FY2020

FY2021

FY2022

FY2020

FY2021

FY2022*The figures above have been calculated in accordance with the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020). Results for the two
previous fiscal years have also been revised by retroactively applying said accounting standard.

7

Main financial indicators■ Total Group transactions（Billion yen）

■ Operating income（Billion yen）

3373.4(VS. target -36.6)
3000■ Net income

2903.72912.2

40（Billion yen）

25.3

36.8

41.8

(VS. target+0.3)

17.8

20

20

(VS. target +1.3)

10

15.2

1000

2.3
FY2020

FY2021

FY2022

FY2020

FY2021

FY2022

FY2020

FY2021

FY2022*The figures above have been calculated in accordance with the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020). Results for the two
previous fiscal years have also been revised by retroactively applying said accounting standard.

8

Segment Income (Revenue and Operating Income)■ Retailing■ FinTech（％）
6（Billion yen）
200

ROIC

4

0.5

150

0.7％

2

（Billion yen）
150

138.1

101.6
Revenue

50

10.0
0

FY20201.5
FY2021

0

100

77.8

75.3

138.2

136.3

0
100

（％）
6

4

2.5

200
2

5.0％

4.6

250

3.4

Record High

2.0
FY2022

Operatingincome

50

0

38.2

FY202041.2
20.2
FY2021

FY2022*The figures above have been calculated in accordance with the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020). Results for the two
previous fiscal years have also been revised by retroactively applying said accounting standard.

9Factors Affecting Operating Income
E x t r ao r din ar yf ac t o r s＋¥17.8 billion
Impacts ofextraordinary loss
(Fixed cost during
stores closed)-¥6.1 billion

Provision forloss on interest
Repayment＋¥23.2 billion

Retailing

Impacts of－¥5.6 billion Gain on transfer,rent exemption
FinTechamortization－¥0.5 billion＋¥4.2
billionof liquidated¥15.2

billionFY2021

Increase in operating income
excluding extraordinary factors＋¥3.8 billion

Retailing -¥1.4billion
FinTech ＋¥19.2billion¥33.0
billionRetailing＋¥1.9 billion

FinTech＋¥1.8 billion

Eliminations/Corporate＋¥0.1 billion¥36.8
billionaccounts
receivable-¥3.5billion

FY202210

Recurring revenue and Contracted future recurring gross profit■ Recurring revenue and Contracted future recurring gross profit

1.8years（Billion yen）
3000
300

Gross
profit1.2years

2000
200

185.5

337.6

Contracted future
recurring gross profit
Retailing 68.8 billon
FinTech 268.8 billion

199.1

100
1000

674 0

67.4
42%
16.3 FY2016

127.6
69%

Recurring revenue

69％
22.3 FY2022＊Gross profit includes selling, general and administrative expenses paid by business partners＊Rent guarantee is calculated based on remaining years of occupancy, affiliate commissions (regular payments) arebased on card expiration dates, and store rental income is based on remaining contract durations

11

O ve r v i ew of Pe r fo r ma n ce a n d S eg m e n t I n co m e
i n F i s ca l Yea r E n d e d M a rc h 3 1 , 2 0 2 2･ Consolidated･ Retailing･ FinTech･ Co-creative investment･ Impact･ Balance sheet and cash flow

Full-Year Forecast for Fiscal YearEnding March 31, 2023
12

Revenue and Operating income（quarterly）
While income level rose from the third quarter of the fiscal year under review, it is still at
about one-third of pre-pandemic levels■ Revenue and Operating income trends（Billion yen）

（Billion yen）

21.4

20
13

Revenue

2.5

1.5

0.8

1Q

2Q

3Q

FY2020

4Q

1Q

2Q

3Q

FY2021

4Q

1Q

2Q

3Q

0.7

Operatingincome4Q

FY2022*The figures above have been calculated in accordance with the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020). Results for the two
previous fiscal years have also been revised by retroactively applying said accounting standard.

13

Trend in Number of Customers Coming to Stores (Existing Stores)
Number of customers coming to stores was 150 million. Aiming to increase this to 210 million by thefiscal year ending March 31, 2026 by increasing the ratio of non-retail tenants that attract a large
number of customers■ Numbers of customers
YoY

2.5（Million）

1.1times

YoY average

About 10% increase

210

2002

150

1.5

1001

0.5

0

FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024FY2025

FY202614

Progress with Stores that Don’t Sell
Category transformation progressing with 50% of floor area now occupied by non-retail tenants.
Aiming to expand this to 70% by fiscal year ending March 31, 2026
■ Numbers of events held

■ Non-retail tenants composition

5600events

2900
Experience
focused

43%

50%

Food,
services 30％
Permanent
events

FY2021

FY2022

15％

70%
70%

915

5％
FY2026FY2021

FY2022

FY202615

E-Commerce Transactions
Has declined for three consecutive years after peaking at ¥24.2 billion in fiscal year ended 2019
■ E-Commerce Transactions(Billion yen)

30.0
24.2

20

18.6

10

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

FY202616

E-Commerce Transaction Volume: Year-on-Year Trends (Monthly)
Established new dedicated UI team that includes specialist personnel, transactions on a recovery
path
Newly appointed 11 UI personnel (of■ E-Commerce Transaction Volume YoY

which 3 are UI specialists)

86％

86％

1Q

2Q

120
（％）

93％

101％
4Q

3Q

108

108
100

102

98

93

90

89

81
76

71
60

APR.

MAY

JUN.

YoY

97

83
80

106

JUL.

AUG.

SEP.

OCT.

NOV.

DEC.

JAN.

FEB.

MAR.

APR.

17

O ve r v i ew of Pe r fo r ma n ce a n d S eg m e n t I n co m e
i n F i s ca l Yea r E n d e d M a rc h 3 1 , 2 0 2 2･ Consolidated･ Retailing･ FinTech･ Co-creative investment･ Impact･ Balance sheet and cash flow

Full-Year Forecast for Fiscal YearEnding March 31, 2023
18

Revenue and Operating Income
Despite a fall in gains on liquidated accounts receivable, both revenue and operating income
reached record highs■ Revenue and Operating Income（Billion yen）

140
135

50

138.1

138.2
0.9

136.3

5.1

4.4

Gain ontransfer ofliquidated
accounts
receivable

Provisionfor baddebts
decrease
-19.4

38.2

Other revenue

41.2

20.2

FY2020

FY2021

OperatingincomeFY2022*The figures above have been calculated in accordance with the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020). Results for the two
previous fiscal years have also been revised by retroactively applying said accounting standard.

19Card Credit Transaction Volume
Efforts to maximize the share of household finances such as rent payments proved successful astransaction volume reached ¥3.1 trillion. Targeting ¥5.3 trillion for the fiscal year ending , 2026
■ Card Credit Transaction Volume

5.3（Trillion yen）
5

YoY
Difference

Change fromFY2020Billionsof yenBillionsof yenBillionsof yen

Rent

573

＋111

＋224

E-commerce

522

＋49

＋168

Regularpayments

309

＋22

＋41

Travel &entertainment

271

＋83

-71

Commercial
facilities

255

＋26

-13

Food

104

＋18

-4

4
3

2.5

2

2.6

3.1

2

1

0

FY2020

FY2021

FY2022

FY202620

Installment and Revolving Payments
Installment payment transactions grew by approx. 600% compared to fiscal year ended March 31,
2016 thanks to measures promoting installment payments. Total transactions for installment andrevolving payments have doubled.
■Installment and Revolving Payments transaction volume
Installment
transactions

3000（Billion yen）

165.3

2000

147.8
23.9

100
1000
500
0

292

600%

250
2500

1500

2times123.9
FY2016

Revolvingtransactions
remain at
roughlysame level

126.7
FY202221

New Cardholders (1)New cardholder signups increased to 610,000. Promoting credit card applications throughInternet-related services and rent payments, etc. on the way to reaching one million new
cardholder signups.
■ New Cardholders

120(million)
100
1
80
60
0.6
40
20
0

Ratio of new
cardholder
applications
made atcommercial
facilities

1
0.81
0.24
0.13
0.44
20.3
FY2020

54％

0.53

0.4

0.61(＋0.08)
0.21

Online0.13

Rent,etc.

0.22

0.27

Commercial
facilities

21.3
FY202122.3
FY2022

0.19
0.12

0.2
0.4
26.3
FY202640％
22

New Cardholders (2)New applications for “Cards tailored to each individual’s interests” growing steadily despite
impacts of pandemic■ New Cardholders■ “Cards tailored to each individual's interests”（million）
1
100

27％
16％

“Cards tailored to eachindividual's interests”

0.13

23％

0.5
50

17％
0.09

FY202020.3

0.27

Since Oct.2021

20,000New cardholders

0.14
0.73

0.68

0

Chiikawa EPOS Card

0.44

0.47

FY2021
21.3

FY2022
22.3

Sumikkogurashi EPOS Card
Since Jul.2019

60,000New cardholders

FY202626.3
23

Cardholder Numbers
Number of cardholders as of March 31, 2022 totaled 7.14 million. Weighting of cards with highly
active users to be increased to 59%.
■ Cardholder Numbers

8.5（million）
8

7.2
7

0.3

2.5

300

FY2020
20.3

7.09
0.36

7.14

1

Cards tailored to eachindividual's interests

4

Platinum/Gold

0.45

Composition
ratio

2.7

2.93

FY2021
21.3

FY2022
22.3

47％

59％

FY202626.3
24

Bad debt
Ratio of bad debt write-offs was at a similar level to past years at 1.8%, due to decline in bad
debt write-offs and increase in receivables at the end of period■ Trends of Ratio of bad debt write-offs

（％）

2.1
Ratio of bad debt
write-offs

500
400

＊

1.8%

1.9

（-0.3）

2（Billion yen）

7500
750

300

737.5

768.8

726.9

Operating receivablesat the end of period

200
100
0

14

14.0
20.3
FY202015.3
21.3
FY2021

14.0

Bad debt write-offs

22.3
FY2022＊Ratio of bad debt write-offs = Bad debt write-offs / Operating receivables at the end of period

25Interest repayment
Repayment amount and repayment claims received (a leading indicator) trending downward
recently.
■ Year-on-year trends of interest repayment amounts and repayment claims received

115
109
100

30
（Billion yen）

105

130
（%）

123

121

120

108

108

99
91

25

110

94

100

88%

20
15
1.5
10
5
0

1Q

2Q

3Q

FY2020

4Q

1Q

2Q

3Q

FY2021

4Q

1Q

90

Repayment claims
received
YoY
80
70

1.4

1.4

1.3

2Q

3Q

4Q

Interest repayment
amounts

60

FY202226

O ve r v i ew of Pe r fo r ma n ce a n d S eg m e n t I n co m e
i n F i s ca l Yea r E n d e d M a rc h 3 1 , 2 0 2 2･ Consolidated･ Retailing･ FinTech･ Co-creative investment･ Impact･ Balance sheet and cash flow

Full-Year Forecast for Fiscal YearEnding March 31, 2023
27

Co-creative investment
Cumulative co-creative investment as of March 31, 2022 stood at ¥22.3 billion. Investment during
the fiscal year ended March 31, 2022 declined sharply to ¥2.9 billion.
■ Investment in startups and funds(Billion(億円)
yen)Total amount

8
80

7.1

4.2

4
40

0

0.5

17.3
FY20173
18.3
FY20182.7
19.3
FY2019￥22.3 billion

0.9

3.3

1.5

0.4

7.2

6.3
3.8

20.3
FY202021.3
FY2021

2.9
1.9

Funds

1.0

Startups

22.3
FY2022*Includes investment from D2C&Co. Inc.

28

Profit Contributions from Co-Creative Investment
Profit contribution of ¥1.0 billion through synergies with co-creative investees. Aiming for profit
contribution of ¥5.5 billion in fiscal year ending March 31, 2026.
■ Profit contribution￥5.5 billion

60（Billion yen）
50

Fintech

40
4

4.0

30
2
20
10

0.5

1.0

15
1.5

0

21.3

22.3

26.3

- Usage of cards at co-creative
investees- Usage of cards made incollaboration with co-creative
investees

Retailing- Tenant store openings by
co-creative investees*Profit contributions included in operating income of Retailing and FinTech businesses■ IRR

FY202227％

Hurdle rate

＞

10％

29

O ve r v i ew of Pe r fo r ma n ce a n d S eg m e n t I n co m e
i n F i s ca l Yea r E n d e d M a rc h 3 1 , 2 0 2 2･ Consolidated･ Retailing･ FinTech･ Co-creative investment･ Impact･ Balance sheet and cash flow

Full-Year Forecast for Fiscal YearEnding March 31, 2023
30

Impacts
The Company is currently carefully reviewing some targets and measurement methods, but
progress is being made with priority initiatives aimed at making positive impacts.
Theme

Creating a future
for future
generations
togetherCreating happinessfor individuals

Creating platforms
for co-creation

Priorities

FY2022

Realization of a carbon-free society

CO2 emissions reduction – 320,000t

Creation of a circular economy

Determining measurable targets withhelp from outside experts

Assistance for self-actualization

Social bonds, HERALBONY card
Young and foreign resident cardholders:
2.86 million

Support for individual preferences“Cards tailored to each individual’sinterests”: 450,000 cardholders

Provision of venues for co-creation

Store utilization with co-creative
investees: 74 projects

Facilitation of work styles that aretransparent to both internal andexternal stakeholders

Co-creation activities oriented toward future generations:Co-creative investment: 40 projects/Co-creation oriented
toward future generations: 20 projects

31

Contributing to Societal Decarbonization
The Company is making steady progress with initiatives to reduce CO2 emissions. Will expand
measures to promote renewable energy use by customers■ CO2 emissions reduction volume

1,000,000 t
or more320,000 t

0t

310,000

17.3
FY201722.3
FY2022

Promotion ofrenewable energy
use by customers
Company’semissions
reduction volume
Scopes 1, 2, and 3

26.3
FY202632

Supporting Self-actualization of Individuals
Expand co-creation with customers and co-creative investees to support self-actualization ofindividuals
Financial inclusion

Diversity & inclusion

Social bonds

HERALBONY EPOS Card

“Supportive investment” balancing
social contribution and asset formation“Card that helps propel society forward
every time it is used”

Reached target amount within
about three hours

From November 2021: 3,000
people*0.1% of amount spent is used to support artists and welfareorganizations

33

O v e r v i e w o f Pe r fo r m a n ce a n d S eg m e n t I n co m e
i n F i s ca l Yea r E n d e d M a rc h 3 1 , 2 0 2 2･ Consolidated･ Retailing･ FinTech･ Co-creative investment･ Impact･ Balance sheet and cash flow

Full-Year Forecast for Fiscal YearEnding March 31, 2023
34

Balance sheet
Total assets came to ¥920.0 billion, up ¥18.8 billion;
operating receivables totaled ¥571.7 billion, up ¥27.0 billion
Total assets ￥901.2 billion
Current assets

Liabilities

Operatingreceivables

Interestbearing debt

￥544.7 billion￥484.6 billion

Fixed assets￥42.1 billion(＋￥18.8 billion)￥289.6 billion

Investment
securities

FY2021

Current assets

Liabilities

Operatingreceivables

Interestbearing debt

￥571.7billion(＋￥27 billion)

Net assets
Shareholder’sequityTotal assets ￥920 billion￥36 billion（-¥6.1 billion）

Fixed assets
Investment
securities￥527.2 billion(＋￥42.6 billion)

Net assets
Shareholder’s equity￥261.6 billion（-¥28 billion）

FY202235

Capital allocation
Allocated ¥12.1 billion for investing for growth, ¥30.0 billion for share buybacks aimed at
capital optimization, and ¥11.0 billion yen for shareholder returns in the form of dividends■ Capital allocation（FY2022）

Core operating
cash flow￥38.5 billion
Loans￥14.6 billion

Investing for
growthExisting investments￥8.5 billion
Forward-looking
investments ￥3.6 billion

Capitaloptimization

Share buybacks￥30.0 billion

Shareholder
returns

Dividends￥11.0 billion

36

O ve r v i ew of Pe r fo r ma n ce a n d S eg m e n t I n co m e
i n F i s ca l Yea r E n d e d M a rc h 3 1 , 2 0 2 2･ Consolidated･ Retailing･ FinTech･ Co-creative investment･ Impact･ Balance sheet and cash flow

Full-Year Forecast for Fiscal YearEnding March 31, 2023
37

Full-Year Forecast for FY2023
・Forecasting 11% increase in operating income year on year to ¥41.0billion and 21% increase in net income to ¥21.5 billion
F Y2022

F Y2023

YOYchangeYOY
difference

EPS

(yen)

85.8

109.1

127

+23.3

ROE

(％)

6.5

8.4

-

+1.9

ROIC (％)

3.3

3.5

-

+0.2

Reduction of CO2(ten thousand tons)

32

34

106

+2

Billions of yen

Billions of yen％

Billions ofyen3373.43910.0116+536.6

Revenue

209.3

222.0

106

+12.7

Gross Profit

181.1

194.0

107

+12.9

SG&A expenses

144.3

153.0

106

+8.7

Operating income

36.8

41.0

111

+4.2

Net income

17.8

21.5

121

+3.7

＜ Reference ＞

Total Grouptransactions

38

Segment Income Forecasts for Fiscal Year Ending March 31, 2023
Forecasting 78% year-on-year increase in Retailing segment to ¥3.5 billion and
7% year-on-year increase in FinTech segment to ¥44.0 billion

FY2022

FY2023
YOY change

YOY difference

Billions of yen

Billions of yen％

Billions of yen

Retailing

2.0

3.5

178

+1.5

FinTech

41.2

44.0

107

+28.0

Eliminations/Corporate

-6.4

-6.5

-

-0.1

Consolidated

36.8

41.0

111

+4.2

39

Planned Dividends
Annual dividend of ¥52 per share is planned for fiscal year ended March 31, 2022. Planning ¥58 pershare for fiscal year ending March 31, 2023, making it the 11th consecutive year of dividend increases.
■ Trend of dividend per share
60
（yen）

40

20

0

33

14

FY201215FY201318

19

FY2014FY2015

49

50

51

52

FY2019FY2020

FY2021

FY202258

38

22

FY2016FY2017FY2018FY202340

2Human-Capital-Focused Management
H i ro s h i A o i ,P re s i d e n t a n d Re p re s e n tat i v e D i re cto r,
Re p re s e n tat i v e Exe c u t i v e O f f i ce r,CEOCorporate Philosophy : Equate the development of our people withthe development of our company
Uniting corporate culture with the development of our people to raise corporate value based on
our corporate philosophy

Corporate value
Development ofour people

Human capital

Corporate
cultureCorporatephilosophy
42

Corporate Culture Reforms (Updating Our “Operating System”)
Update our “operating system” to move away from focus on earnings performance and restore
relationships of trust within the Group

Application

Sustainability

Old corporate culture

Well-beingOS

New corporate culture

43Corporate Culture that We Aspire toContrasting corporate culture

Corporate culture that
we aspire toCompulsion

Autonomy

Obligation

Enjoyment

Top-down commands

SupportCore business + social
contribution

Contribution to solvingsocial issues through corebusiness

Earnings performanceenhancement

Value enhancement

44

MARUI GROUP’s Corporate Culture
Advance a variety of measures simultaneously on the way to reforming corporate culture

1 Corporate philosophy
2 A culture of Interaction
3 Work style reforms
4 Embracing diversity
5 A culture of voluntary participation
6 Personnel transfers within Group to different job
categories
7 Appraisal based on both performance and value
8 Well-being45

1 Corporate Philosophy“Continue evolving to better aid our customers”“Equate the development of our people
with the development of our company”

46

Interaction about Corporate Philosophy

More than 4,500 employees have taken part in interaction over the course of more than a decade“What are am I actually working for?”“What did I want to accomplish by joining MARUI?”47

Foundation for Building Relationship as Equals
As a result of adjusting our corporate philosophy, employee turnover increased at one stage,
but has since trended down as acceptance grew
■ Employee turnover rate (excludes mandatory retirees)■ Employee turnover rate
(in first three years after joining as fresh graduates from university)

（%）

（%）

14

13%

31% Averagelevel inJapan*

30

12
10

20%

8

11%

15

6

MARUI GROUP

3%

4
2
0

6.3
FY200610.3
FY201014.3
FY201418.3
FY201822.3
FY2022

0

7

9

11

13

15

17

Year of joining company

19 as fresh graduate fromuniversity

Estimated by MARUI GROUP based on Ministry of Health, Labour and Welfare data on employee
turnover rate trends within three years of joining companies as fresh graduates from university48

2 A Culture of Interaction
Transform corporate culture so that all meetings involve two-way interaction rather than oneway communication
The rules of Interaction
1 Begin with “safe space” declaration
2 Do not set specific purpose
3 Do not demand a conclusion
4 Listen attentively
5 Speak in response to what someone
else says
6 Do not dismiss a person’s opinion
7 Let ideas mature by having intervals
between meetings49

3 Work Style Reforms
Switch to corporate culture that sharply reduces monthly overtime hours per person and that isbased on the idea that the creation of value is the essence of work
■ Monthly overtime hours per person
12（hour）■ Approach to work

11hours

10
8

4.5
hours

6

BeforeNow

Providing Time

Providing Value

4
2
0

08.3
FY200822.3
FY202250

4 Embracing Diversity
Organizational reform has been ongoing since 2014, with focus on diversity in three areas of“gender”, “age groups”, and “individuals.”

GenderPromote exploration of diverse work styles and participation by women indecision-making

AgegroupsEnable participation of all age groups, from young to older employees

Individuals

Encourage individual growth and development through the gaining of diverse
work experience51

Promoting Diversity: Gender diversity
Promote participation of women in decision-making and launch more in-depth initiatives■ Women’s Empowerment Indexes (excerpt)New■ External assessment
FY2014FY2022

FY2026

Ratio of female leaders

20

32

40

Ratio of female employees pursuing
upper-level positions

41

64

75

Ratio of applicable male employees
taking childcare leave

14

100

100

Ratio of applicable male employees taking
childcare leave within eight weeks ofchildbirth by partner

―

51

80

Percentage of employees who aresympathetic to revising traditional genderroles (men work, women look after home andchildren)

―

48

50

Men’s share of housework and childcare

―

35

35
（％）

Nadeshiko Brand(selected five years running)52

5 A culture of voluntary participation :Medium-Term Management Visionary Committee in 200853

A culture of voluntary participation :Medium-Term Management Visionary Committee Today＊Includes images of meetings before the COVID-19 pandemic

54

A culture of voluntary participation :Medium-Term Management Visionary Committee
Applications open once a month, and 300 applicants are selected from 1,000 applicants after
an assessment of essays submitted.
Application

Selection

Participation

Applicants submit essays anonymously

Each essay is assessed by apanel of two or three people

Dialogue with speakers

Approx. 1000

■Number of
meetings held

Approx. 300

78■ Cumulative number ofparticipants

25,000Total for 2015–202255

A culture of voluntary participation
To inspire innovation, build an voluntary organization by encouraging each employee to be independent■ Initiatives facilitating voluntary participation■ Percentage of employees voluntary
participating

Interaction on corporate philosophy
Official Groupwide projectand initiatives
Personnel transfers within Groupto different job categories
Program enabling employees to attend
external business schools
Medium-Term Management Visionary
Committee
Future Leader
Development Program

2008

2010

2012

2014

2016

2018

2020

82％
FY20222022

56

6 Personnel Transfers Within Group to Different Job Categories
Help individual employees to grow by experiencing work at different Group companies and departments■ Percentage of employees who change
job categories■ Personnel transfer image

Retailing

FinTech

77％77％＊As of March 2022

IT

Housing

MARUI GROUP

Corporate
venturecapital

Logistics

Securities■ Percentage of employees who felt they
had achieved personal growth after transfer

86％＊ Based on questionnaire carried out in November 201657

7 Appraisal Based on Both Performance and Value
Promote corporate philosophy of appraisal based on both performance and value, whichmeans appraisal is not only based on performance, but also on personal growth anddevelopment
Performance appraisal

ResultShort-term appraisal: Bonuses

ActionSkillsKnowledge

Putting corporate philosophy
into practice

Value appraisal
Medium- to long-term appraisal:
Promotions58

8 Well-Being

Definition of health in World Health Organization’s charter *“Health is a state of complete physical, mental, and social well-being
and not merely the absence of disease or infirmity.”■ Resilience program for executives■ Well-being promotion project
Since 2016, 40–50* Source: WHO■ Selected by METI as Health andProductivity Management
Organization for five years runningparticipants per year

Up to five times
more applicants
than places
59

Investment: Investment in R&D and Human Resources So Far
Invested ¥11.0 billion in total over period covered by previous medium-term plan; increased
investment to ¥4.2 billion in FY2022（billion yen）

￥4.2 billion

11.0billion

Total amount ￥

4
40

3.4

1.0

3
30

Investment in human resources
・Personnel expenses in business
units responsible for humanresources development

・Education and training expenses

3.2

20

R&D expenditure
・Expenses

1
100・Personnel expenses(Anime department, co-creation teams, R&D Center, etc.)

0.6
FY2017FY2018FY2019FY2020

FY2021

FY202260

Investment: Redefining Human Capital Investment
Redefine items in income statement of each fiscal year connected with increasing corporate value in the longer
term as “human capital investment”■ Breakdown of human capital investment in FY2022
・First year after job

STEP 3category change
Additional・okos Co., Ltd.
investment¥4.5
billion

STEP 2・Personnel expenses in new
businesses
R&D
・Co-creation team personnel expenses
expenditure ・Seconded personnel expenses¥2.2
billion

STEP 1

・Education and training expenses
・Medium-Term Management Visionary Committee ,HR investment participation in projects and initiatives

Human capital
investment¥7.7
billion¥1.0
billion61

Investment: Human Capital Investment as Share of Personnel Expenses
Increase human capital investment that contributes to future earnings to ¥12.0 billion and 35%
of personnel expenses

35％
180"00Share of personnel

140"0022￥12.0
billion（billion yen）
120"00100"00
10
80"00

35
30

expenses

160"00

40
（%）

25
20
15
10

￥7.7billion

5
0

60"00
6
40"00
20"00
0

22.3
FY202223.3
FY202324.3
FY202425.3
FY202526.3
FY202662

Evolve into Knowledge-Creation Company

From in1931(Establishment)

From 2006

From 2019

Labor-intensive

Capital-intensive

Knowledge-creation

Business model

Retailing-driven

FinTech-driven

Retailing + FinTech + Forwardlooking investments

AssetsFixed Assets

Financial assets

Intangible assets

Investment

Tangibleinvestments

Intangible investments

63

Challenges on the Way to Evolving into a Knowledge-Creation Company
Gap exists between group’s desired direction and nature of current workforce

Labor-intensive/capitalintensive

Knowledge creation

Current human resources

Required human resources

Operations
Efficiency

Gap

Production
Creativity

64

Required Human Resources: “Digital Business Creation Personnel”“Digital Business Creation Personnel” are personnel able to harness the power of digital tools tocreate new businesses■Attributes of digital business creator personnelInterested

Organizational
capabilities + ability
to take action

Hypothesisdriven
thinkers

Agile development skills utilizing
digital tools

Ability to become absorbed in theirwork and enjoy it

Goaloriented

Envisions future goals andbackcasts from these

Adept with digital
tools

65

Future Initiatives: Expanding Personal Growth Opportunities
Expand personal growth opportunities through new businesses, co-creation teams, andFuture Leader Development Program■ Co-creation teams■ New businesses

Deploy new initiatives, including incubationcompany okos Co., Ltd.

400
（people）

347

300

Promote co-creation with startups byteams led by executive officers

250（people）

201(22teams）

200

■CMA

＊

Next-generation management training
program to produce future MARUI GROUP
management team members
250（people）

200

200

150

150

100

100

50

50

200

100

0

FY201616.3

FY201919.3

FY2022
22.3

0

20.7

21.3
FY202122.3
FY2022078

18.3
FY201822.3
FY202227.3
FY2027＊Co-creation Management Academy

66

Future Initiatives: Digital Transformation Training
Identify and train personnel capable of harnessing digital tools to create new businesses withco-creation partners■ Digital transformation training
Initially train directors, then expand+

program to train new recruits andexisting employees

Director training
New recruit training
Existing employee
training

AppKoshien(in-house)＊ Digital transformation training for directors

21.12

22.4

22.12
67

Future Initiatives: Established “Muture”
Established “Muture”, a joint venture with leading UX design company Goodpatch Inc., toadvance Group’s digital transformation

Goodpatch Inc.
Established

September 2011

Representative

Naofumi Tsuchiya, CEO/Founder

Market

TSE Growth（Listed on TSE Mothers in 2020)

Business

UI/UX, business model design,

Muture Corporation+

software development
Hiring of human resources with advanced
digital skills
Training of in-house UX specialists throughsecondment
68Governance: Established New HR Strategy Committee
New committee established as an advisory body, working with Strategy Committee and outside experts topropose HR strategies to board of directors

HR Strategy Committee

Strategy Committee

NEW・Make recommendations on required
human resources and HR portfolio
・Make recommendations on hiring/training
plans and HR system

Chair

MemberTomoo Ishii

Etsuko Okajima(CHRO）(External Director)

・Tasked with examining
medium-to-long-termbusiness strategies

Collaborate

Chair

Yasunori Nakagami(External Director)

69

Issuance of Shares to Employees
Issue shares to employees to further promote “Management emphasizing Stakeholders” andincrease corporate value

Performance-linked stock compensation for directors and executives＋
Issue shares to general employees

Promote “Management emphasizing Stakeholders”
Consider issuing a total of 500,000–1,000,000 shares to employees, providing each employeewith at least enough shares to be eligible to exercise shareholder voting rights

Considering holding employee shareholders’ meetings(In addition to general shareholders’ meetings held in accordance with the Companies Act)

70

The forward-looking statements contained in this presentation are based on information available at the 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 a variety of different factors. Please
direct any inquiries to the IR Department (marui-ir@0101.co.jp ).