December 10, 2018 MARUI IR DAY 2018 Co-Creation Sustainability Explanatory Forum
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).