December 10, 2018

MARUI IR DAY 2018

Co-Creation Sustainability Explanatory Forum

2

15:05～

Discussion with External Director

Yuko Shiota, Chief Manager, ESG Promotion Department and Chief Manager, Sustainability Department, MARUI GROUP CO., LTD.

Break

Masahiro Muroi, External Director, MARUI GROUP CO., LTD.

MARUI GROUP’s Co-Creation Sustainability Management, Long-Term Vision, and Long-Term Targets (Draft)

15:30～

16:30～

15:55～

17:00～ Discussion Forum

Today’s Schedule

Ecological Inclusion

Saho Tsunematsu, Business Planning Department, Epos Card Co., Ltd.

16:05～ Co-Creation Initiatives—EPOS Family Gold Cards

15:00～ Introduction

Hiroshi Aoi, President and Representative Director, Representative Executive Officer, MARUI GROUP CO., LTD.

Introduction

MARUI GROUP’s Co-Creation Sustainability Management,

Long-Term Vision, and Long-Term Targets (Draft)

Hiroshi Aoi, President and Representative Director,

Representative Executive Officer, MARUI GROUP CO., LTD.

1 Transition

from ESG to Sustainability

1 MARUI GROUP’s ESG Initiatives

共創サステナビリティ経営 A flourishing and inclusive society that offers happiness to all

４

Four Core Themes for Inclusion

1. Customer Diversity and Inclusion

2. Workplace Inclusion

3. Ecological Inclusion

4. Co-Creation Corporate Governance

9

４

Inclusion Initiatives (1)—Development of Inclusive Stores

10

Hakata Marui store developed together with customers

In-house training

RAINBOW PRIDE event

４

Inclusion Initiatives (2)

11

Financial inclusion (tsumiki Securities Co., Ltd.)

Inclusive product creation (Rakuchin Kirei series shoes)

12

50

100

150

200

250

2013.03 2014.03 2015.03 2016.03 2017.03 2018.03

Stock price 222

EPS 193

TOPIX 166

MARUI GROUP’s Stock Price

■MARUI GROUP’s Stock Price (Mar. 2013 indexed to 100)

13.3 Mar. 2014 Mar. 2015 Mar. 2016 Mar. 2017 Mar. 2018 Mar. 2013

13

50

100

150

200

250

2013.3 2014.3 2015.3 2016.3 2017.3 2018.3

Stock price 222

EPS 193

TOPIX 166

MARUI GROUP’s ESG Initiatives and Stock Price

Jun. 2014 Appointment of External

Director Ms. Etsuko Okajima

Mar. 2018 Inclusion in

Nadeshiko Brand Feb. 2018 Inclusion in White 500

selection

Jul. 2017 Inclusion in three ESG

indexes utilized by GPIF

Oct. 2017 Receipt of A rank in DBJ Environmentally Rated

Loan Program

Oct. 2016 Recognition in Carbon

Offset Awards

Jan. 2018 Ranked No. 1 in Nikkei

Corporate Environmental Management Survey

Jun. 2015 Reduction of number of directors from 10 to six

May 2016 Establishment of Nominating

and Compensation Committee

Jun. 2016 Introduction of performance-

linked stock-based compensation

■MARUI GROUP’s Stock Price (Mar. 2013 indexed to 100)

Mar. 2014 Mar. 2015 Mar. 2016 Mar. 2017 Mar. 2018 Mar. 2013

Price Earnings Ratios of MARUI GROUP and Peers

14

MARUI GROUP

20.1 times

23.3 times

18.7 times

15.1 times

Department Store A

31.6 times

16.6 times

Non-Bank Financier C Similar Business Model Company X

13.1 times

7.4 times

30.4 times

13.6 times

64.8 times

11.2 times

Mar. 2013

Mar. 2018

Mar. 2013

Mar. 2018

Mar. 2013

Mar. 2018

Mar. 2013

Mar. 2018

Mar. 2013

Mar. 2018

Mar. 2013

Mar. 2018

Department Store B

Non-Bank Financier D

ESG Achievements and Issues

15

＜Achievements＞

＜Issues Based on Input from Investors＞

Business strategies

Corporate philosophy

Improved corporate value

1. Need to set long-term targets for accomplishing long-term vision 2. Need for quantitative disclosure of progress toward long-term targets

Improved corporate value achieved by founding business strategies on corporate philosophy

Employee Participation in Establishing Long-Term Vision and Long-Term Targets

16

2018年 7月

MA

RU

I IR D

AY

Dec. 2017 Jan.–Feb. 2018

1st Future Workshop (Officers, newer employees, and external specialists)

2nd Future Workshop (Official project team members and external specialists)

May–Sep. 2018 Sep. 2018

Pre

para

tion o

f initia

l pro

posa

ls

(Secre

taria

t and e

xte

rnal sp

ecia

lists)

2nd F

utu

re W

ork

shop p

roposa

ls

Oct. 2018

3rd

Futu

re W

ork

shop (O

fficers

) Exam

inatio

n o

f initia

l pro

posa

ls

Dec. 2018

Inte

nsiv

e m

eetin

g o

f offic

ers

Re-e

xam

inatio

n o

f initia

l pro

posa

ls

One month Four

meetings

Four months Seven

meetings

Process for Establishing Long-Term Vision and Long-Term Targets

17

・Projection of future circumstances pertaining to MARUI GROUP in 2050 based on changes in the operating environment ・Establishment of long-term vision and long-term targets arrived at through a backcasting approach

Analysis of operating environment 30 years in the future (2050) (Global megatrends and microtrends)

Projection of future circumstances pertaining to MARUI GROUP in 2050

Establishment of vision for MARUI GROUP in 2050 and long-term targets for accomplishing vision

Analysis of Operating Environment (Global Operating Environment 30 Years in the Future)

18

・Global population of approx.

10 billion in 2050

・Population of emerging countries

71% higher than in 2000

・Concentration of populations in urban areas (expansion of megacities)

Population Trends

Economic Climate

Climate Change and Resource Depletion

Technological Progress

・1°C–2°C rise in average global

temperature in comparison to 2000 ・Increased demand for food, water, and energy ・Shift toward clean energy

・Deceleration of global economic growth

・Emergence of China and India as No. 1 and 2 GDP leaders

・Approx. 40% of global GDP

attributable to China and India

・More than 50% of global

population connected to the Internet ・Further spread of IoT ・Evolution of AI

MARUI GROUP’s Outlook for the Future (2050)

19

Interdependent world

Reality Ideal

Balance between individuality and

coexistence

・Opposition based on nationality and ethnicity ・Globalism vs. nationalism

・Increased diversity and dilution of concept of minorities ・Connections transcending traditional dichotomies while valuing individuality

Global income disparity

・Rising wages in developing countries, increasing economic disparity in developed countries →Wealthy vs. low-income individuals on a global scale

・Business opportunities catering to both low- and middle-income individuals creating a massive global market

Coexistence with the natural

environment

・Inability for environment to support traditionally high production and consumption levels →Population growth vs. resource depletion

・Survival only by businesses that coexist with the natural environment ・Renewable energy and circular economies as the norm

Business Opportunities and Growth Fields for MARUI GROUP

20

Provision of options emphasizing balance

between individuality and coexistence

Provision of options emphasizing coexistence with

the natural environment

Co-Creation

Provision of options for alleviating income

disparity

MARUI GROUP’s 2050 Vision

21

Harnessing the power of business

to build a world that transcends dichotomies

Path to 2050 Vision

22

Inclusive businesses

Inter-generational

Financial Inclusion

Inclusive Value = Happiness

Co-Creation

businesses

1 Long-Term Targets (KPIs)

23

24

1. Inter-generational Businesses

(1)Green Businesses

Provision of options emphasizing coexistence with the natural environment

(2) Human Businesses

Future human resource development

(1) Green Businesses

Gre

en b

usin

esse

s

Reduction of environmental

impacts

Circular economies

Energy

Waste

Reduce

Reuse

Recycle

25

26

(1) Green Businesses—KPIs

Gre

en b

usin

esse

s

Reduction of environmental impacts

Circular economies

Environmental efficiency ＝

Operating income

CO2 emissions

Ratio of circular revenue

Circular sales/transactions

Total Retailing segment transactions

＝

Medium-Term Targets (Five years in the future)

Long-Term Targets (10 years in the future)

Ultralong-Term Targets (30 years in the future)

Environmental efficiency 10.2 ・20% reduction in greenhouse gas emissions ・70% of electricity sourced from renewable energy ・60% rate of resource recycling

Ratio of circular revenue 30% or more

Environmental efficiency 15 or more ・40% reduction in greenhouse gas emissions ・100% of electricity sourced from renewable energy ・70% rate of resource recycling

Ratio of circular revenue 40% or more

Environmental efficiency 20 or more ・80% reduction in greenhouse gas emissions ・100% rate of resource recycling

Ratio of circular revenue 50% or more

27

(1) Green Businesses—Long-Term Targets

28

(2) Human Businesses

Hum

an b

usin

ess

es External (society)

Internal

Corporate culture

Human resource investment

29

(2) Human Businesses—Long-Term Targets

Medium-Term Targets (Five years in the future)

Long-Term Targets (10 years in the future)

Ultralong-Term Targets (30 years in the future)

・Annual human resource investments of ¥1 billion or more

・Voluntary participation by 10,000 employees or more each year

・Finance and sustainability education for future generations (in Japan)

・Aggregate total of 200 or more future MARUI GROUP leaders cultivated ・Aggregate total of 4,000 or more individuals capable of creating future value cultivated

・Aggregate total of 10,000 or more individuals capable of creating future value cultivated ・Finance and sustainability education for future generations (overseas)

30

2. Inclusive Businesses

Provision of options emphasizing balance between individuality and coexistence

Inclusive Businesses

31

e.g., store development, product development, customer services

e.g., business partners, start-up companies

e.g., community and regional development

Inclu

sive b

usin

esse

s

Co-creation with customers

Open innovation

Co-creation with communities and

society

Co-creation with investors

e.g., management emphasizing capital costs

32

Inclusive Businesses—Long-Term Targets

Medium-Term Targets (Five years in the future)

Long-Term Targets (10 years in the future)

Ultralong-Term Targets (30 years in the future)

・Co-creation with aggregate total of 100,000 or more customers ・Open innovation with 100 or more companies ・Engagement with 50 or more communities ・50 or more cases of engagement leading to increased corporate value

・Co-creation with aggregate total of 500,000 or more customers ・Open innovation with 500 or more companies ・Engagement with 100 or more communities ・100 or more cases of engagement leading to increased corporate value

・Co-creation with aggregate total of 1,000,000 or more customers ・Open innovation with 1,000 or more companies ・Engagement with 200 or more communities ・300 or more cases of engagement leading to increased corporate value

33

3. Financial Inclusion

Provision of options for alleviating income disparity

34

Financial Inclusion

Fin

ancia

l Inclu

sion

Customers

Credit cards

Asset formation

Other financial services

Financial services

Younger generations

Non-Japanese individuals

Non-Japanese individuals in

Japan

Non-Japanese individuals overseas

35

Financial Inclusion—Long-Term Targets

Medium-Term Targets (Five years in the future)

Long-Term Targets (10 years in the future)

Ultralong-Term Targets (30 years in the future)

・EPOS cardholders of 10 million or more ・Financial services provided to 5 million or more members of younger generations ・Financial inclusion promoted through investment in 10 or more countries worldwide

・Services provided to 1 million individuals through tsumiki Securities ・Financial services provided to 500,000 or more non-Japanese individuals ・Financial inclusion promoted through investment in 20 or more countries worldwide

・Financial services provided to 10 million or more individuals worldwide

Six Rings of Stakeholder Governance Including Future Generations

36

Customers

Business partners

Investors

Employees Communities and Society

Future generations

Customers

Business partners

Investors

Employees Communities and Society

Future Steps

37

1. Announce long-term vision and long- term targets (KPIs) to all stakeholders in co-creation sustainability report scheduled to be released in February 2019

2. Examine possibility of introducing sustainability targets into indicators to which medium-to-long-term incentives are linked in conjunction with expansion of the portion of officer compensation accounted for by performance-linked compensation scheduled for FY2020

Question and Answer Session

Ecological Inclusion

Yuko Shiota

Chief Manager in charge of ESG Promotion and Sustainability

1997 Joined MARUI GROUP CO., LTD.

2013 Deputy Store Manager, Kawasaki Marui, MARUI CO., LTD.

2014 Hakata Demand Marketing Section, Sales Planning Division, MARUI GROUP CO., LTD.

2016 In charge of CSR Promotion, CSR Promotion Department

2017 ESG Promotion Department and Sustainability Department

Speaker Introduction

40

ESG Promotion Department and Sustainability Department, MARUI GROUP CO., LTD.

Promises Made in Previous Year (1) Enhancement of Environmental Initiatives

41

■External Recognition

・Reductions in CO2 emissions across value chain achieved for five consecutive years ・First place in Retail & Restaurants category of Nikkei Corporate Environmental

Management Survey for first time in eight years

Nikkei Corporate Environmental Management Survey

1st place in Retail & Restaurants category

(Received in August 2018)

670,000 tons

640,000 tons

610,000 tons

600,000 tons

520,000 tons (down 13% YoY)

Scope 1 & 2 (emissions from operation of MARUI GROUP’s stores and offices)

FY2014

FY2015

FY2016

FY2017

FY2018 410,000 tons

Scope 3 (emissions from raw material procurement, transportation, and products purchased by customers)

120,000 tons

490,000 tons

550,000 tons

530,000 tons

510,000 tons

■MARUI GROUP’s CO2 Emissions

(Announced in January 2018)

110,000 tons

100,000 tons

110,000 tons

110,000 tons

LACP Gold Award

S&P/JPX Carbon Efficient Index

(Selected in September 30, 2018)

・Establishment of medium-to-long-term emission reduction targets and promotion of information disclosure to achieve “A” CDP score

・First targets of Japanese retailing company to be certified by Science Based Targets and declaration of endorsement of TCFD

Promises Made in Previous Year (2) Enhancement of Climate Change Combating Initiatives

■Greenhouse Gas Emission Reduction Targets

・Targets certified by Science Based Targets (March 2018)

FY2031 Scope 1 & 2: 40% reduction Scope 3: 35% reduction

Scope 1 & 2: 80% reduction FY2051

＊International initiative encouraging companies to set science-based greenhouse gas emission reduction targets

〈MARUI GROUP Targets〉

■Disclosure of Information on Impacts on Financial Performance

Organization encouraging companies to disclose information on the impacts of climate change on financial performance together with information on climate change-related business risks and opportunities

→ Information disclosure scheduled to begin on corporate website in March 2019

42

・Declaration of endorsement of TCFD (November 2018)

Future Initiatives

Green businesses

Reduction of environmental impacts

Circular economies

Electricity

Waste

Reduce

Reuse

Recycle

Trade-ins, reselling

Tenants (apparel, foods)

Sizes

Stores that share and do not sell

MARUI GROUP’s Green Businesses

Energy

Foods, plastics, paper

Others (gas, etc.)

44

・Over 80% of emissions from MARUI GROUP’s business from electricity

1-1. Background for Transition to Renewable Energy

■Distribution of MARUI GROUP’s Greenhouse Gas Emissions by Source (Scope 1 & 2)

45

Electricity 84% (95,000 tons)

Gas 10% (11,000 tons)

Others (5,000 tons)

Total emissions in FY2017:111,000 tons

46

・Decision to source 100% of electricity used in business activities from renewable energy

1-2. Membership in RE100

■July 2018 Membership in RE100

〈Target〉

Source 100% of electricity used in business activities from renewable power sources by 2030

■Start of Initiatives with Minna Denryoku Co., Ltd. (Starting at Shinjuku Marui Main Building in September 2018)

ENECT

RE100 Plan

Power Plants Demand

ENECTION 2.0

Matching between generation and demand volumes on 30-minute intervals and

registration in blockchain records

Minna Denryoku

・Sequential shift to renewable energy to achieve goal of sourcing 100% of electricity from renewable energy by 2030

・Science Based Targets-certified reduction targets projected to be accomplished ahead of schedule due to shift to renewable energy

1-3. Roadmap for Accomplishing Goal of 100% Sourcing from Renewable Energy

■Medium-Term Renewable Energy Usage Targets (Reduction in total electricity usage through installation of energy-saving equipment)

(0 stores)

FY2017

7万t

Total electricity usage 200 million kWh

Ratio of renewable

energy

1%

50%

170 million kWh

100% 70%

47

0%

(1 store)

FY2019

(13 stores)

FY2021

(18 stores)

FY2026

(All stores)

FY2031

・Third-party evaluation: Second opinion received from Sustainalytics of the Netherlands

1-4. Issuance of Green Bonds to Be Used 100% for Renewable Energy

■Overview of Bonds

・Issuance of first green bonds by a Japanese retailer to be used 100% for renewable energy ・Bonds recognized as coinciding with RE100 vision due to funds being used to cover electricity procurement costs

・Amount of issue: ¥10 billion

Maturity period: 5 years

・Use of proceeds 1. Source 100% of electricity from renewable power sources 2. Reduction of GHG emissions 3. Renewable power generation

■New Connections with Investors

Reports to be issued on annual fund allocations and environmental impact indicators

Companies announcing investment: 7

“There has previously been a lack of options for ESG investment, and we therefore hope that other companies will follow in MARUI GROUP’s footsteps.” Representative from Company A

48

Oita Bank Co., Ltd.

Kansai University

Taiyo Life Insurance Company

The Hiroshimaken Credit Cooperative

The Fukui Bank, Ltd.

Mitsubishi UFJ Trust and Banking Corporation

Sumitomo Mitsui Trust Asset Management Co., Ltd.

・Provision of sustainable energy options through capital and business alliance with Minna Denryoku

1-5. Explanation of 100% Renewable Energy Initiatives

■December 2018 Capital and Business Alliance with Minna Denryoku ・Introduction of customers looking to switch to renewable energy to

Minna Denryoku by MARUI GROUP

Recommendation of switch to renewable energy

MARUI GROUP

Payment of monthly electricity bills with EPOS cards

49

Customers

Rent guarantee services

Users 250,000

(As of September 30, 2018)

Minna Denryoku

2-1. Expansion of Circular Economy

・Growth of new businesses by responding to shift from ownership to use

DRENI e-commerce-oriented directly operated dress rental shop

Apple Store Shinjuku (Shinjuku Marui Main Building)

Share Marche sharing business partner

<Sharing of Goods>

lululemon (Shinjuku Marui Main Building)

Choku Choku… (Soka Marui)

<Sharing of Spaces>

Enicia (Shizuoka Marui)

<Stores That Do Not Sell (Experience Providers)>

50

51

2-2. Value of Circular Economy (1)

Source: Kojima Fashion Marketing Co., Ltd.

Note: Numbers of items supplied are calculated by adding imported and domestically produced items (excluding undergarments). Numbers of items consumed are estimated based on the average numbers of annual purchases per household and the total numbers of households described in household surveys by the Ministry of Internal Affairs and Communications.

・Apparel Supply-Demand Gap

10

12

14

16

18

20

22

24

26

28

30

1990 2017

1,196 million items

1,154 million items

Supplied 2,798 million

items

Consumed 1,343 million

items

52

2-2. Value of Circular Economy (2)

・Expansion of new value as environmental value is incorporated alongside customer value

Customer Value

Large Low

〈Rental〉

Environmental Value

〈Sale〉

・客数 179人

・単価 1.1万

・リピート客構成 4%

Joy of choosing a new dress on every occasion

Lack of guilt for throwing away unworn dresses

Economic benefits from not needing to purchase

Lower need for storage space

<Environmental Impact of One Dress Transaction＞

Dress produced

1,000 1,000

2,000 333

2.0 times

0.3 times

85% reduction in emissions per transaction

3.5 t-CO2 0.5 t-CO2

Buyers/Users

Production burden per buyer/user

Green Business KPIs

FY2018 FY2019 FY2020 FY2021

Environmental efficiency (income / CO2)

6.7 7.8 9.5 10.0

Greenhouse gas emissions

530,000 tons

510,000 tons

500,000 tons

470,000 tons

Ratio of renewable energy usage

0％ 1％ 20％ 50％

Ratio of waste recycling

57％ 57％ 58％ 60％

Ratio of circular revenue 19% 20% 22% 25%

■KPIs for FY2021

Environmental efficiency 10.0 (Twice as high as FY2017) Ratio of circular revenue 25% or more

53

Question and Answer Session

Co-Creation Initiatives EPOS Family Gold Cards

Saho Tsunematsu

Business Planning Section,

Business Planning Department, Epos Card Co., Ltd.

2014 Joined Marui City Yokohama

2016 Hiring Section, Personnel Division, MARUI GROUP CO., LTD.

2017 Business Planning Section, Business Planning Department,

Epos Card Co., Ltd.

Speaker Introduction

56

Issues Discovered When Examining Measures

Increase in Gold cardholders contrasted by a downward trend in transactions

132

129

126

121 120

118

119 120 120

118

116 115

107 106 107

108 108 107

1H ofFY2016

2H ofFY2016

1H ofFY2017

2H ofFY2017

1H ofFY2018

2H ofFY2018

Gold cardholders

Total card shopping

transactions

Industry average

FY2009

1,840,000

May 2012 Start of on-the-spot issuance

+90,000

Annual average +240,000

■Gold Cardholders ■Card Shopping Transactions (YoY Changes)

% of total cardholders

28%

% of total transactions

70%

57

FY2013 FY2018

+32%

+7%

+29%

+26%

+21% +20%

+18%

+15% +16%

+18%

+20% +20% +19%

+6% +7% +8% +8% +7%

Examination of New Measures for Addressing Issues

Team discussion and hypothesizing on measures for increasing transactions by Gold cardholders

Current Issues Going Forward

Downward trend in transactions by Gold cardholders

Potential need for program encouraging use by Gold cardholders

58

Key Issues Raised During Discussions with Customers

I have been using my EPOS card less since I got married and have

started using a family card.

■MARUI GROUP’s Hypothesis ■Customer Input

Top priority should be a family card

Why doesn’t Epos Card offer a family card?

Discussions with Gold and Platinum cardholders held to verify hypothesis

Cardholders would be pleased by a loyalty

program for promoting usage.

59

Need for family card to respond to changes in life stages

Reevaluation of Hypothesis Based on Discussions with Customers

Additional team discussion held based on customer input

Increases in family spending may be a reason behind the declines in EPOS card usage.

EPOS

EPOS

I started using a family card too after getting married.

EPOS

The greatest cause behind the decline in usage may be changes in life stages.

60

61

Key Issues Raised During Discussions with Customers

Joint billing statements are a problem because there are

purchases I want to keep secret.

■MARUI GROUP’s Hypothesis ■Customer Input

If we have a joint credit limit, my wife may get angry when

I spend too much.

It would be nice if I earned points for my husband’s purchases.

If Epos Card offers a family card, cardholders

will be happy.

Further discussions with Gold and Platinum cardholders held to verify hypothesis

Customer concerns exist

regarding family cards in general

EPOS

Further In-House Examination Based on Discussions with Customers

Women

70%

Spending managed separately

72%

■Characteristics and Lifestyles of EPOS Cardholders

Demographic breakdown of cardholders

Method of managing household spending

The increase in two-income families is driving an increase in couples in which each partner manages their spending separately.

Our ratio of female cardholders is higher than those of our peers. EPOS

Focus on characteristics of EPOS cardholders and lifestyle changes

■Characteristics of Peers’ Cardholder Bases

Demographic breakdown of cardholders

Women

50%

62

Vision for New Service Gleaned from Discussions with Customers

Husband 【Policy holder】

■General Family Cards ■New EPOS Card Service

Wife【Introducer】

Husband 【Introduced】

Wife 【Family member】

Distinctive EPOS card service that strikes a balance between individual independence and family bonds

Child 【Family member】

Everything tied to policy holder Usage separated, points shared

Point sharing

Transaction account

Billing statement

63

Transaction account

Billing statement

Child 【Introduced】

Launch of EPOS Family Gold cards on June 28, 2018 (name based on suggestions submitted by customers)

Expansion of New Gold Cardholders through New Service Increases in new applications through introductions to be targeted, higher LTV to be pursued by encouraging standard cardholders to upgrade to Gold cards

64

Husband (Holder of peer’s card)

Wife (policy holder) (EPOS Gold cardholder)

Upgrade to EPOS Gold card

Upgrade to EPOS Gold card

Standard cardholder

Child (Standard cardholder)

Peer’s card

Performance after

Launch of EPOS Family Gold Cards

and Customer Input

■ Gold cardholders

2,150,000 (+310,000)

■ Card Shopping Transactions (YoY Changes)

132

129

126

121 120

118

121

123

119 120 120

118

116 115

116

118

107 106 107

108 108 107 107 107

15上 15下 16上 16下 17上 17下 18上 18下

+32%

+29%

+26%

+21%

+20%

+18%

+23%

+21%

+7% +6% +7% +8% +8% +7% +7% +7%

(Forecast)

YoY growth in transactions by Gold cardholders exceeding 20%, Gold cardholders projected to reach 2,150,000

Benefits of EPOS Family Gold Cards

66

+15% +16%

+18%

+20% +20% +19%

Gold cardholders

Total card shopping

transactions

Industry average

+16%

+18%

FY2009

1,840,000

May 2012 Start of on-the-spot issuance

+90,000

Annual average

+240,000

FY2013 FY2019 (Forecast)

1H of FY2016

2H of FY2016

1H of FY2017

2H of FY2017

1H of FY2018

2H of FY2018

1H of FY2019

2H of FY2019

Customer Input

Ability to win favor of even cardholders using rival cards as their main card by developing service through co-creation with customers

I applied due to a recommendation by my wife.

Getting a free Gold card gave me access to a wealth of services and

provided a sense of value. Accumulating points as a family

is an exciting proposition.

The ability to link spending to different accounts is a

handy service not offered by other family cards.

Especially considering that there are purchases we want to

keep secret…

【Introducer】 【Cardholder A】

67

【Introducer】 【Cardholder B】

Co-Creation Activities with Customers

☆First step of co-creation comes by not being overly attached to own hypothesis and lending earnest ear to customer input

☆Need to revise hypotheses to identify and resolve issues based on customer input

☆Process of hypothesizing, confirming hypotheses with customers, and revising hypotheses drives evolution of hypotheses

Apr. 2017 Aug. 2017 Jul. 2017 Jan. 2018 Feb. 2018

Customer participation Customer participation

■Process

■Discoveries and Reflections

68

Naming Confirmation

surveys

Service examination

Family card discussions

Family card needs survey

Discussions Examination

Aug. 2017

Question and Answer Session

Discussion with an External Director

71

1. Director Introduction

2. Impressions of MARUI GROUP

3. Future Issues and Expectations

MARUI GROUP as Viewed by an External Director

72

・Previously from Nomura Research Institute, Ltd.

Initially positioned as an IT engineer, experience as a project manager and in developing new businesses utilizing and IT

Served as corporate officer at head office for 13 years, involved in Nomura’s governance reforms, eight years of IR experience

Previously held positions as vice president, vice chairman, and chairman of the board of directors

・Vice Chairman, Japan Information Technology Services Industry Association

Announced concept of Japan as an undeveloped country in terms of digitization

Held position as chairman of digital transformation human resource cultivation working group at IPA, an organization under the Ministry of Economy, Trade and Industry

・External Director (Independent Director), MARUI GROUP (Appointed in June 2017)

Participates in on-site inspections and meetings at own request

・Inspected Marui and Modi stores (16 stores)

・Inspected IT subsidiary M & C SYSTEMS CO., LTD., and datacenters

・Inspected Misato Web Sales Distribution Center

・Participated in 10 meetings of Medium-Term Management Visionary Committee

・Observed Epos Card customer service role-playing competitions

・Conducted numerous meetings on specific subjects

Director Introduction

Masahiro Muroi

External Director, MARUI GROUP CO., LTD.

73

・ Strong impression made by MARUI GROUP’s co-creation management reports and IR presentations, which dwarfed my past efforts

・ Inclusion positioned at the core of management

・ Ambitious drive for self-transformation

・ Open, frank management in which all employees can participate

Stance of thinking together with employees rather than imposing strategies and measures on them

Vigorous discussion at Board of Directors’ meetings

Impressions of MARUI GROUP

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・Surrounded by various potential threats

Emergence of e-commerce giants, declines in consumption of goods, aging population, declining birthrate, spread of cashless payments

・Strategies targeting sustainable growth after the completion of the transition to shopping centers and fixed-term rental contracts

⇒ Maximization of competitiveness of existing store, credit card, and

Internet assets + Development of distinctively MARUI GROUP next-

generation business assets

・Concern regarding potential for significant earnings to be generated from new businesses

Anime business, securities business, investment and collaboration in start-up companies, sharing, share houses, lifestyle applications, etc.

・Lack of unconventional employees due to large portion of employees that are honest, gentle, straight-arrow types

Many operators but few innovators

⇒ New business projects, seconding to start-up companies, dispatches to

business schools, programs open to voluntary participation

Future Issues and Expectations

Question and Answer Session

Forward-looking statements contained in this presentation are based on information available at the time of

preparation and on assumptions that have been deemed to be rational. Actual performance may differ

greatly due to a variety of factors. Any inquiries may be directed to the IR Department (Tel: 03-5343-0075).