Marui Group Co., Ltd. · TSE:8252
Marui — Marui Group Co Ltd Ord — Q2 2022 Earnings Presentation
37 slides from Marui's earnings presentation, Nov 11, 2021
Slide 1: Overview of Performance in Six Months Ended September 30, 2021
@ MARUI GROUP CO., LTD e ee Overview of Performance in Six Months % Ended September 30, 2021 o ve MARUI GROUP November 11, 2021 r -~ @
Slide 2: Today's Agenda
Today’s Agenda @ @ MARUI GROUP 1 Overview of Performance in Six Months Ended September 30, 2021 and Full-Year Forecasts Hirotsugu Kato, Director, Managing Executive Officer, CFO @ eo. 2 Reflecting on the Six Months Ended September 30,2021 Hiroshi Aoi, President and Representative Director, Represent
Slide 3: Overview of Performance in Six Months Ended September 30, 2021 and Full-Year Forecasts
OlO MARUI GROUP 1 Overview of Performance in Six Months Ended@y September 30, 2021 and Full-Year Forecasts Hirotsugu Kato, Director, Managing Executive Officer, CFO q
Slide 4: Highlights in Six Months Ended September 30, 2021
Highlights in Six Months Ended September 30, 2021 OlO! Maru! Group 1. EPS increased 39% year on year to ¥57.8, recovered to 90% level compared to 2019 in spite of the impact of COVID-19 2. Total group transactions increased 18% year on year to ¥1591.5 billion, hit a record high in the first half 3.
Slide 5: Consolidated Performance
Consolidated Performance EPS (yen) 2Q 2Q FY2020 FY2021 Billions of Billions of cone eeeceeeeeeneeee yon || ae Total Group transactions 1414.1 1348.3 Revenue 117.8 102.4 Gross Profit 99.9 89.0 Recurring gross profit 65.3 59.5 SG&A expenses 77.4 68.3 Operating income ARO) 20.7 Net income 13.9 8.9 2Q F
Slide 6: Segment Income
Segment Income Operating Income 2Q 2Q FY2020 FY2021 Billions of Billions of eee yen fo Retailing 4.8 1.1 FinTech 21.1 22.7 Eliminations /Corporate 3.4 3.1 Consolidated 22S Billions of OlO!l Marui GRoup: Change YOY YOY change difference 20 ¢vI020 ili f % Bi ron on % 35 -0.7 8 105 +1.2 113 - 0.0 - 102
Slide 7: Factors Affecting Operating Income
Factors Affecting Operating Income OlOl Maru! Group Consolidated operating income excluding extraordinary factors including impacts of extraordinary losses increased 7% to ¥1.5 billion Increase in operating income +¥1.5 billion Extraordinary —¥1.1 billion | Retailing ~¥1.3 Bittion | excluding extrao
Slide 8: Consolidated Balance Sheets
Consolidated Balance Sheets OlO!l Maru! Group Mar.31, 2021 Sep.3 YOY difference Operating receivables (Liquidated accounts receivable : Off-balance sheet) [Ratio of liquidated accounts receivable(%) *1] installment sales accounts receivable operating loans outstanding Billions of yen Billions of yen
Slide 9: Cash Flow
Cash Flow OlO!l Maru! Group 2Q FY2020 [a YOY change Net cash provided by (used in) operating activities Increase(decrease) in operating receivables Core operating cash flow *3 Billions of ye Net cash provided by (used in) investing activities Purchase of fixed assets (tangible, intangible) Gains on
Slide 10: Lifetime Value Management Indicator
Lifetime Value Management Indicator OlOl Maru! Group Recurring Gross Profit 2Q | Be ee ee FY2021 YOY change YOY difference Billions of y i Billions of yen Retailing +3.5 FinTech +0.2 Total +3.6 a ithi Composition within 42.2 gross profit (%) 10
Slide 11: Full-Year Forecasts for FY2022
Full-Year Forecasts for FY2022 OlOl Maru! Group FY2021 YOY YOY VS. FY2020 change difference difference EPS (yen) 10.6 753 +69.0 —37.4 ROE (%) 0.8 - +5.1 -2.9 ROIC (%) 1.4 - +1.8 =0.5 (Reference) Billions of yen % Billions of yen Billions of yen Total Group transactions 2919.2 Revenue 206.2 103 +5.8
Slide 12: Segment income forecasts for FY2022
(Reference) Segment income forecasts for FY2022 OlOl Maru! Group FY2021 YOY change YOY difference Billions of yen Billions of yen Billions of yen Retailing 1.5 FinTech 20.2 Eliminations/Corporate —-6.5 Consolidated ao 240 +21.3 operating income First half Second half *Planning premise Change from Ch
Slide 13: Reflecting on the Six Months Ended September 30, 2021
OlO MARUI GROUP 2 Reflecting on the Six Months Ended my September 30,2021 Hiroshi Aoi, 4 President and Representative Director, Representative Executive Officer,CEO *° e ® @
Slide 14: State of emergency
State of emergency State of emergency
Slide 15: Shopping centers nationwide
Shopping centers nationwide Marui
Slide 16: Retailing Segment: Category Transformation
Retailing Segment: Factor @ Category Transformation OlOl Maru! Group The impact of the apparel industry slump due to the COVID-19 pandemic was minimal thanks to progress with category transformation Hi Marui Modi sales floor area breakdown Store closing rate (21.4 - 21.9) 2% Other than apparel Appar
Slide 17: Retailing Segment: Strengthening Partnerships
Retailing Segment: Factor @ Strengthening Partnerships OlO! Mf Measures to strengthen partnerships in the first half of FY2021 (1) Support, including exemption of rent and deposits, totaling ¥1.3 billion (2) Helpline providing information on government COVID-19 subsidies, assisting with applications
Slide 18: Retailing Segment: Progress with Stores that Don't Sell strategy
Retailing Segment: Progress with “Stores that Don’t sell” strategy Ol! Introduction of experience-focused tenants accelerated, aiming to expand to 70% by the final year of the mid-term plan Mi Tenants that opened stores in first half of 2021 i Sales floor area breakdown by category Experience -focus
Slide 19: Retailing Segment: Progress with Stores that Don't Sell strategy
Retailing Segment: Progress with “Stores that Don’t sell” strategy OlOl Maru! Group Hi Tenants that opened stores in first half of 2021 BULK HOMME Tokyo Anime Center Surugaya Specialty Store THE STAND in DNP PLAZA SHIBUYA Buying Center Ma puiding Shibuya Modi Marui Family Mizonokuchi The first brick
Slide 20: State of Emergency
State of Emergency State of Emergency (Cases)
Slide 21: Fintech Segment: Transaction Volume
Fintech Segment: Transaction Volume Old! Achieved record transaction volume of 1.4 trillion yen in first half due to strategy of maximizing share of household finances @ Card credit transaction volume 1 4 trillion YoY Change (trillion yen) yen Billion yen Billion yen 1.2 Rent 280 +60 12 E-commerce 2
Slide 22: Fintech Segment: Revolving and Installment Payments
Fintech Segment: Revolving and Installment Payments OlO! Maru! Group With the recovery of transaction volume, we expect the balance of revolving and installment transactions to reach a record high at the end of the fiscal year ending March 31, 2022 @ YoY change in revolving and installment transacti
Slide 23: FinTech: New Cardholders
FinTech: New Cardholders OlOl Maru! Group Number of credit card applications at commercial facilities recovered. Applications by new cardholders up 40,000 from September 2020 MNew cardholders 270,000 230,000 YoY changes 120,000 Commercial + 30,000 200,000 speae , facilities Online +10,000 100,000 Re
Slide 24: Investment for the Future: Co-Creative Investment
Investment for the Future: Co-Creative Investment Hinvestment in startups Companies Amount 1H FY2021 4 0.7 billion yen Total 31 13.4 billion yen OKIRR ¢ Wi Share price performance of the 31 companies >’ Share price difference between time of investment and most recent procurement Over 18 companies 1
Slide 25: Investment for the Future: Co-Creation Teams
Investment for the Future: Co-Creation Teams OlO!l Maru! Group 24 co-creation teams with a total of 212 members are driving co-creation initiatives FABRIC TOKYO BULKHOMME @uD A-too (Surugaya) DINETTE uD 24 ti Global Trust Networks -Cr ion teers. Gojo & Company teams Crowd Credit (+3 teams) GOOD VIBE
Slide 26: Future Direction
OlO MARUI GROUP 3 Future Direction my —Incorporating shareholders and investors feedback— Hiroshi Aoi, President and Representative Director, 4 Representative Executive Officer,CEO e e ® e
Slide 27: Questions from Shareholders and Investors
Questions from Shareholders and Investors OlOl 1) What is your “Stores that Don’t sell” strategy? 2) What is your digital transformation-related human resources strategy? 3) What “Impact” initiatives are you implementing to achieve your sustainability and well-being goals? 4) How is “Buy Now Pay Lat
Slide 28: Stores that Don't Sell Strategy
“Stores that Don’t Sell” Strategy OlOl Maru! Group High entry barrier to “Stores that Don’t sell” strategy harnessing Retailing, FinTech, and Co-creative Investment Earnings structure Entry barrier Co-Creative Financial returns Investment + FinTech + Retailing 28
Slide 29: Digital Transformation Initiatives: Review
Digital Transformation Initiatives: Review OlO! Maru! Group FinTech business steadily growing, but E-commerce is stagnant Mi Transactions (fiscal year ended March 31, 2016 = 100) FinTech 200 E-commerce 100. |----------- 16.3 21.3 29
Slide 30: Digital Transformation Initiatives: Review
Digital Transformation Initiatives: Review OlO! Maru! Group In theory: Mission critical systems personnel and know-how can also be utilized in development/ operation of online systems FinTech E-commerce Mission critical systems Online systems * Highly experienced personnel Can these be utilized * Ac
Slide 31: Digital Transformation Initiatives: Review
Digital Transformation Initiatives: Review OlO! Maru! Group In practice: It is difficult to utilize mission critical systems personnel and know-how in online systems development/operations because they are entirely different fields Mission critical systems Big data processing Online systems UI/UX en
Slide 32: Digital Transformation Initiatives: Future Direction
Digital Transformation Initiatives: Future Direction OlO! Maru! Group Expand online systems workforce Online systems personnel will underpin investing for the future and other future growth businesses personnel New businesses 250 2) Train existing personnel (investment for the future, apps, E-commer
Slide 33: Impact Initiatives to Achieve Sustainability and Well-Being Goals
“Impact” Initiatives to Achieve Sustainability and Well-Being Goals = CIO! Maru! Group Positive impact Stakeholder value hat stakeholders =— expect us to do Value created by having a positive impact = increased stakeholder value = increased corporate value > Prepared by Marui Group, based on /KIGAI,
Slide 34: Impact Initiatives to Achieve Sustainability and Well-Being Goals
“Impact” Initiatives to Achieve Sustainability and Well-Being Goals = CIO! Maru! Group Priorities Approach Work together with future generations to create the future Each Group company and Support self-actualization of business unit to finalize Work together to individuals bring happiness to individ
Slide 35: Impact Initiatives: Committees
“Impact” Initiatives to Achieve Sustainability and Well-being Goals : committees OlO Maru! Group Strategy Study Committee QED Sustainability Committee at Chair Chair Yasunori Nakagami Peter D. Pedersen (External director) (External director) 35
Slide 36: Impact Initiatives: Future Generation Advisors
“Impact” Initiatives to Achieve Sustainability and Well-Being Goals: Future Generation Advisors OlOl Maru! Group Sota Watanabe CEO, Stake Technologies Kyoko Ozawa Former Chief Future Officer of Euglena Co., Ltd. 36
Slide 37: Forward-looking statements
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
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