Integrated Group Management

Integrated Group Management

Standardized Group Platforms andProfession Changes

Organization that Utilizes Diversity

Healthcare Management
Underpinning Personal Growth➀ Standardized Group Platforms and Profession Changes

Profession Change Relocation
for Cultivating Human Resources
and Future Innovation
MARUI GROUP adopted a holding company system in
2007, through which it now oversees 10 Group companies.
The transition to this system was meant to enable Group
companies to specialize while allowing for integrated management of all companies in order to create the foundations
for a forward-looking business model that prevents individual businesses from becoming isolated.
In addition, all of the Group’s approximately 6,000
employees can undergo profession changes between Group
companies. It is common for people, after having worked in asingle profession for a number of years, to go about theirjobs without putting much thought into their practices.
However, being placed in a new profession can kindle a fresh
sense of inquisitiveness and allow employees to escapepreconceptions. Such transitions are not only beneficial forthe employees undergoing profession changes, but also forthe new workplaces in which they are placed. By increasing
the number of employees that undergo a profession change,
we aim to cultivate employees that embody a customer-firstmentality and are adept at responding to change in order tomake the Group a more fertile ground for innovation.

Employees grow to embody
a customer-first mentality andbecome adept at responding tochange and make proposals
based on the Group’s perspectiveof merging retailing and finance.
Employees that have experienced
various professions are able toview customer needs from a retailperspective and make proposals
that go beyond the conventions ofeach industry.

Profession Changes
through Shared Human

Retailing

Made Possible
Resource System

Ratio of Employees Changing Positions
between Group Companies

FinTechApprox.

34%

Aggregate total from April 2013–April 2017
(Excludes officers and managers)
Space Production,
Commercial Facility Management,
and Advertising

Apparel Distribution
Internet Sales Support

Percentage of Employees Who Experienced
Personal Growth after Profession Change

Approx.
IT Systems

Total Building Management

Loan Collection

Real Estate Rental

Small-Amount Short-Term
Insurance Policy BusinessSupport for Group Companies

86%

According to the results of a survey carried out in November 2016

4 色指定 :M100+Y60+BL20%
特色 :PANTONE 207

Employees gain sales floor staff
experience at MARUI CO., LTD.,to teach them about
customer needs.

MARUI GROUP CO., LTD.

All employees first join
MARUI GROUP CO., LTD.

Platform Supporting         Profession Changes

ShareGroupwide

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Human resourceand salarysystems

Work hours

Welfare systems

Labor union

Post-Professional Change Monitoring

Health insuranceunion• Self-declaration system allowing employees to declare the professions
and divisions in which they are interested in working (twice a year)• Meetings and on-the-job training providing opportunities for discovery
for employees who have changed their profession as well as their newcolleagues
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Integrated Group Management

Integrated Group Management

Standardized Group Platforms andProfession Changes

Organization that Utilizes Diversity

Healthcare Management
Underpinning Personal Growth➁ Organization that Utilizes Diversity

Promotion of All Employees’
Efforts to Benefit Customers
In the medium-term management plan launched in thefiscal year ended March 31, 2015, promoting diversity
has been defined as one of the strategies for realizing
MARUI GROUP’s corporate philosophy, which calls for us
to “continue evolving to better aid our customers” and“equate the development of our people with the development of our company.” Our goal in promoting diversity is tocreate an organization in which each of our approximately
6,000 employees can exercise their individual talents
and feel energized and motivated in their work. Society iscurrently undergoing changes, and the values and needsof people are diversifying. In order to respond to thesechanges, we need employees to put forth their uniquestrengths, forming teams when individual effort is notenough. Moreover, we must build upon our ability to utilize
these endeavors on the part of employees to improve
corporate value. To achieve these objectives, we are­cultivating a corporate culture in which all employees are
accepting toward one another’s individuality and reforming systems to make sure employees are motivated in theirwork as they tackle new challenges and grow. In addition,
we are implementing management reforms to utilize thisculture and these systems in promoting diversity.

Medium-Term Management Visionary Committee
The Medium-Term Management Visionary Committee is aforum for discussing various topics that will be importantto the future of Group management. In the past, meetings
were primarily focused on explanations of management
policies and other such matters. However, topics are now
selected that require a medium-term perspective and forwhich initiatives will be advanced with a timeline of threeto-five years. While this committee was previously only
open to members of Group management, any interested
employee is able to apply for participation, and meetings
have been held almost every month since. Active discussion is conducted among the around 320 members thatare selected from the approximately 1,000 applications
received for each meeting. Furthermore, we regularly
invite outside lecturers to conduct special lectures.

Committee Meeting Discussion Topics
2016 Topics
Analysis of MARUI GROUP’s operating environment andfuture projections
Medium-term management plan for Retailing and
FinTech segments
Hakata Marui co-creation initiatives
Report on interactions with investors
Retail industry and MARUI GROUP as viewed by an analyst:
Special lecture by Mizuho Securities Co., Ltd.
Vision for the world realized through FinTech and MARUIGROUP’s business therein:
Special lecture by Advisory Board member
Masakazu Masujima
Retail industry and MARUI GROUP as viewed by a businesscolumnist:
Special lecture by Shiho Innami of the Toyo Keizai Online
Department of Toyo Keizai Inc.

2017 Topics

Three Themes for Promoting Diversity
1. Corporate culture in which theindividuality of every employee
is respected

2. Systems and frameworks supportingthe contributions of all employees

3. M anagement reforms for utilizing
diversity• Cross-Group profession change system• Initiatives led by Medium-Term
Management Visionary Committee• Official Groupwide project teams• Work style reforms (reduction of overtime)• Systems for supporting employees inbalancing their work with childrearing
and long-term care of family members• Communication reforms• Opportunities for everyone to participate
in management• Corporate culture facilitating self-growthDistribution industry as seen through trends in China,
the United States, and Japan:
Special lecture by Nomura Research Institute, Ltd.
Social environment as it pertains to MARUI GROUP and
future outlook
Future created by the fashion business:
Special lecture by Representative Director Yoko Ohara of
Women’s Empowerment in Fashion
Strategies for competing viewed as stories—requirements
for effective strategies:
Special lecture by Professor Ken Kusunoki of the Graduate
School of International Corporate Strategy at Hitotsubashi
University
Medium-term management plan for Retailing and
FinTech segments
Capitalizing on Security and Potential of Money:
Special lecture by Aya Maeno, Representative Director ofCras Inc. and Representative of FP Office will

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Integrated Group Management ➁ Organization that Utilizes Diversity

Hiroshi Nakada
Telecommunication Networks,
Store System Development Department

M & C SYSTEMS CO., LTD.

I am responsible for developing the systems
for try-on stores. It was previously difficult tounderstand just who exactly I am making
these systems for. Through participation in
the Medium-Term Management Visionary
Committee, however, I gained an understanding of the overarching trends in society andwithin the Company, helping me better
determine the extent to which systems canbenefit customers and how these systems
can be improved. Identifying needs canfacilitate the future co-creation of value.

The Medium-Term
Management Visionary
Committee

Integrated Group Management

MARUI GROUP’s corporate philosophy
calls for us to “continue evolving tobetter aid our customers” and “equate
the development of our people withthe development of our company.”
Based on this philosophy, we
have established Groupwide committees and project teams with members
recruited through open application.
Employees seeking to participate areasked to submit short essays when
applying based on which participants
are selected. In this section, we present messages from 10 individuals thathave participated in the Medium-Term
Management Visionary Committee.

Equate the Developmentwith the Development ofStandardized Group Platforms andProfession Changes

Organization that Utilizes Diversity

Healthcare Management
Underpinning Personal Growth

Maki Takayanagi

Kazumasa Takahashi

Yukito Takamura

Sales Planning Section, Sales Planning Division

Women’s Accessory Sales Floor, Yurakucho Marui

Leasing Department, Space Production Division

MARUI CO., LTD.

MARUI CO., LTD.

AIM CREATE CO., LTD.

Participation in the Medium-Term Management
Visionary Committee enables one to view
matters from a broader perspective and alonger timetable. It can be expected thatsocial trends will evolve more quickly andbecome more diverse going forward. This
will result in the standards for customers’purchasing decisions becoming more
complex. When I look to the future, I see
MARUI GROUP’s co-creation management,
which involves co-creating customer happiness together with stakeholders, becoming
even more important.

The pressures of daily work can cause one tofocus only on their own agenda. Through myparticipation in the Medium-Term Management
Visionary Committee, however, I was remindedof the Group’s goals, which gave a clearer
vision of the fundamental aim of my work. To“continue evolving to better aid our customers” is a part of our corporate philosophy
and also an important goal for everyone at
the Group. Even if our work is different, allGroup members share an understanding of
the importance of the customer. I therefore
feel that our visions are aligned.

The Medium-Term Management Visionary
Committee has made reflective thought acommon habit of mine, enabling me to be
more receptive to changes in my surroundings and to act from a forward-looking
perspective. In my current position, I feelthat I am providing store environment
solutions that incorporate elements forvarious businesses. I am always endeavoring
to utilize the information gained throughmeetings and my daily studies to tackle newchallenges in the now.

of Our People
Our Company

Emi Murata

Azusa Morimoto

Tetsuya Nakamura

Mari Yamamoto

Go Yamaguchi

Asuka Uemura

Rakuchin Kirei Shoes Fit Studio, Kinshicho Marui

Real Estate Business Section, Real Estate Business Department

Internet Marketing Section, Omni-Channel Retailing Division

Sales Section 3, Home Business Division

E-Commerce Website Section, Internet & Fulfillment Division

Marui Shoes Sales Floor, LaLaport Shonan Hiratsuka

MARUI CO., LTD.

MARUI GROUP CO., LTD.

MARUI CO., LTD.

Epos Card Co., Ltd.

MOVING CO., LTD.

MARUI CO., LTD.

When I participated in the Medium-Term
Management Visionary Committee, I was
reminded that the Fit Studio try-on store
I work at uses a new business model that
arose from the overlap between several
areas of the Group. We are seeking to further
improve this model’s ability to satisfy customers through a concerted Groupwide
effort. For example, we have increased theconnection speeds of sales-use tablets andenhanced our systems to allow for smoothcoordination between EPOS card application and Internet sales site registration.

As I am currently working shortened hours,
I recognized the Medium-Term Management
Visionary Committee as an opportunity toeasily maintain an understanding of theCompany’s strategies. Moreover, participation helped me figure out how to incorporate
my desires and commitment into my work.
Everyone plays a “lead role” at MARUI GROUP,
and the growth of each individual is linked to
the growth of the Company. Even if my timeworking is short, I still want to do my best to
benefit customers.

Working in one place can make it difficult tobreak away from preconceived notions tocreate fresh ideas. Participation in the MediumTerm Management Visionary Committee
enabled me to adopt a wider range of­perspectives. This also helped me to think interms of a medium-to-long-term timetable.
I am currently engaged in e
­ -commerce
operations. At my workplace, I share myfindings with coworkers who could notparticipate in the committee so that we canmove ahead with a forward-looking perspective based on a common understanding.

When I first joined, I was focused only onpleasing the customers in front of me.
However, through participation in theMedium-Term Management Visionary
Committee, my eyes were opened to awider range of concerns, including theworking environment for us employees,
our relationships with business partners,
and changes in the operating environmentfor MARUI GROUP. In the future, I hope topractice co-creation management with afocus on bringing happiness to myself andto those around me.

I have found participation in the MediumTerm Management Visionary Committee
to be a prime opportunity to reflect on mycurrent work. My first profession changebrought me to MOVING, where I saw firsthand the strength granted to MARUI by
possessing its own distribution and IT systems.
In the past, I had been engaged in Internet
sales as a buyer. My current position is also
related to e-commerce, but it requires acompletely different perspective. Exposure
to this different perspective broadened
my horizons.

Personal growth comes when you act based on
new ideas or different perspectives and movebeyond preconceptions. Personal growth has
the potential to drive the growth of the Group.
The Medium-Term Management Visionary
Committee is an opportunity to gain anunderstanding of social trends and of MARUIGROUP’s strengths and find means of incorporating this newfound understanding into
one’s work. In addition, discussions with othercommittee participants lead to various new
discoveries. I have thus come to view the otherparticipants as comrades in mutual growth.

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Integrated Group Management ➁ Organization that Utilizes Diversity

Integrated Group Management

Standardized Group Platforms andProfession Changes

Organization that Utilizes Diversity

Healthcare Management
Underpinning Personal Growth

Learn about
Individuality

Forum for learning how to approach others
based on the Enneagram of Personality,
which puts forth nine personality types
Daily-use sign language lesson taught by Group employees withhearing impairments

Exhibition of OUT IN JAPAN collection ofphotographs of members of the LGBT community by famous photographer Leslie Kee

Garnering Great Support for Inclusion
MARUI GROUP promotes co-creation management to co-create the happiness of customers together withall of its stakeholders. We have turned our eyes to inclusion as a means of unlocking opportunities forthe future in response to social issues and customer needs, which change together with the times.

Learn about the
Body and Mind

Yoga lesson for teaching employees how to relax their bodies andminds and focus on themselves in the moment“Mizuno Style Ninja School” for supporting the physical development of children

Testing station for “vein age,”bones, lung capacity, and dorsal
muscle and grip strength

Special LectureCreation of an Organization That
Utilizes Diversity

Haruaki Deguchi
Founder of LIFENET INSURANCE COMPANY

Special Lecture
Inclusion for Innovation— Changing the Future with Barrier Value

Toshiya Kakiuchi
President, Mirairo Inc.

Talk Event

Inclusion Fes 2017
Co-Creation of Happiness for Everyone

Experience
Others’ Situations

Promoting inclusion through our business will requirea corporate culture in which the individuality of every
employee is accepted and respected. To facilitate thecultivation of such a culture, we held Inclusion Fes 2017,
an event for employees, in August 2017. This event provided a venue for fostering awareness among employees
and allowing them to experience their differences firsthand. The event garnered great support for inclusion, witharound 1,500 employees and family members attending
during its two-day period.

Lesson in which people learn
how to assist individuals using
wheelchairs and operate
wheelchairs through actual use

Encounter with Paralym Art,
Supporting Differently Abled Individuals

Thane Camus
Director, SHOUGAISHA JIRITSU SUISHIN KIKOUASSOCIATION

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This event was planned primarily by the diverse
members of official Groupwide project teams,
namely the Marui Future Project Team, Healthcare
Management Project Team, and Diversity ProjectTeam. These individuals used the event as anopportunity to communicate the activities of theirproject team and the principles they embody.
www.0101maruigroup.co.jp/en/sustainability/

Opportunity to experience being guided by aseeing-eye dog by using eye masks to shutout vision feedback

Specialized pregnancy simulation jackets used to teach about thedifficulties and joy of pregnancy

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Integrated Group Management

Integrated Group Management

Standardized Group Platforms andProfession Changes

Healthcare Management
Underpinning Personal Growth

Organization that Utilizes Diversity➂ Healthcare Management Underpinning Personal Growth

Healthcare Management as a Strategy
for Further Energizing Employees
In MARUI GROUP’s healthcare management, we strive toencourage employees to think through the lens of healthand act accordingly in order to become more energizedand thereby increase corporate value. For this reason, it isimportant to take the perspectives of preventing healthissues and also energizing employees and enabling them
to work happier. Healthcare management has been defined
as an objective of the medium-term management plan,
which we are promoting on a Groupwide basis throughcoordination between the activities of the HealthManagement Division and MARUI GROUP’s health­insurance union. These activities have earned us muchpraise, leading the Company to earn the highest rank in
Development Bank of Japan Inc.’s DBJ Employees’ HealthManagement Rated Loan Program in October 2016 andto be included in the Excellent Enterprise of Health andProductivity Management—White 500, a joint program
launched by the Ministry of Economy, Trade and Industry,
the Tokyo Stock Exchange, and Nippon Kenko Kaigi, in
February 2017.

Level of Energy+

High

Average Monthly Overtime of 3.7 Hours
MARUI GROUP views healthcare management as one
aspect of workstyle reforms, and has thus diversified its
workhour management and working systems since 2008.
As part of these efforts, overtime reduction policies andtargets have been set for each positon and shifts areformulated systematically for stores using up to 50 working patterns defined in 10-minute increments. Moreover,work processes are being optimized on a Groupwide
basis. For example, processes related to delivering andreturning products to storage and other back-office procedures at stores are handled by Group companies to enable
store employees to be primarily positioned in customer
service roles. As a result, average monthly overtime hours
per person were down to 3.7 in the fiscal year ended
March 31, 2017, while average annual overtime hours
decreased to 44. Average monthly overtime among head
office employees was 7.2 hours in the fiscal year ended
March 31, 2017, representing a roughly two-thirds reduction compared with the fiscal year ended March 31, 2008,
while average monthly overtime at our 31 stores nationwide was 0.8 hours, making for a 90% reduction from thesame year. These reductions have improved productivity
along with personnel expense efficiency.

Resilience Program for Improving AwarenessBeginning with Senior Management
More energizedand productive
than previously

0

Not ill

In need of preventive activities and quick response
measures to reduce risks–Groupwide Healthcare Management Project Team
Resilience Program for senior management
Analyses utilizing health examination data

Healthcare examinations undergone by
100% of employees
Self-care training sessions held 260 times a year
Appointment of female wellness leaders

The understanding of senior management is necessary
to enable employees to become more energized andmotivated in their work. Based on this recognition,
MARUI GROUP has implemented the Resilience Program,which targets general managers and other members ofsenior management and encourages them to develop
lifestyle patterns that increase their energy and the energyof those around them with regard to their body, mood,mental state, and thinking. In this program, 360-degree
evaluations are conducted through feedback from theprogram participants, their subordinates, and their family
to analyze data on the participants’ own energy levels andtheir influence on others. The influence of managers isgreat, and we are already witnessing a rise in healthcare
management awareness among senior management andemployees as illustrated by voluntary initiatives driven by
employees at each workplace.

Average Monthly Overtime Hours per Person
20 hours

10.9 hours

Head office

7 hours
Consolidated
Stores

7.2 hours
3.7 hours
0.8 hours

FY2008FY2017

Overtime Reduction and Benefits
FY2008FY2017

BenefitAverage annual overtime hours
per person

130 hours

44 hours–86 hours

Total overtime payments¥3.3 billion¥0.8 billion–¥2.5 billion

6.8%

2.6%

–4.2ptEmployee turnover rate
(excluding mandatory retirement)

Evolution of Healthcare Promotion Activities
1962	Establishment of MARUI GROUP’s health insurance union
1970	Opened Marui Health Insurance Union Building
2008 Commencement of overtime reduction project
2011	Start of Health Improvement Program by MARUIGROUP’s health insurance union	Established Health Management Division andappointed dedicated Company physicians2013	Introduced physical and mental health consultation hotline
2014	Began analyzing health examination data of all employees and relationship between lifestyle patterns andattitudes toward work	Started holding self-care training sessions for all
employees
	Appointed wellness leaders nationwide to help alleviate women’s health concerns
2016	Introduced Resilience Program to energize senior managers
in terms of their body, mood, mental state, and thinking
	Incorporated new healthcare management items into
labor agreements
	Established outside advisory board and began analyzing healthcare management practices and data	Formulated Groupwide Healthcare Management
Project Team2017	Began promoting healthcare management as one
aspect of workstyle reforms

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