1 A Look at MARUI GROUP

Transcription

1 1 A Look at MARUI GROUP

2 Overview of MARUI GROUP Founded: Business activities: 1931 (Initially sold furniture through monthly installment payments) Retailing, FinTech * Unique business model merging retailing and finance Marui Modi EPOS Card 26 stores primarily in Kanto but also in Tokai, Kansai, and Kyushu Transactions : billion yen 200 million customers visit our stores 6.5 million Cardholders Transactions : billion yen (Fiscal year ended March 31, 2018) 2

3 Performance Trends: Overcoming Two Years of Losses to Expect Historical High EPS of in FY19 EPS Forecast (Yen) Bubble collapse Money Lending Business Act revision Lehman shock More than 130 (Forecast) 90 EPS FY87 FY91 FY96 FY01 FY09 FY11 FY19 FY21 30 (Forecast) 90 円 60 3

4 Co-Creation Management : Open Innovation with Customers Credit should not be assigned to customers; it should be built together with customers. (Founder: Chuji Aoi) Amalgamation of co-creation efforts Hakata Marui More than 4.0 million pairs sold! Rakuchin Kirei Shoes Gold card with no annual fees Co-Creation = Open Innovation with Customers Japan s first scheme for purchasing investment trusts with credit tsumiki Securities Co., Ltd. EPOS card app Over 1.6 million downloads! 4

5 MARUI GROUP s View of Corporate Value: Six Rings of Stakeholder Governance 5

6 Corporate Governance : Emphasizing Corporate Value Endeavor to practice sound management that is highly transparent and efficient to heighten earnings capacity Directors 7 External (Independent) 3 Audit & Supervisory Board Members 4 External (Independent) 2 Executive Officers 16 Female 3 Nominating and Compensation Committee Members 3 External (Independent) 2 6

7 Corporate Governance Measures taken to address two issues identified through evaluation of the Board of Directors effectiveness Issues Identified through Evaluation of the Board of Directors Effectiveness and Response Measures Failure to link director compensation to medium-to-long-term corporate value Lack of successor development programs <Introduction of medium-to-long-term incentives> Performance-linked, stock-based compensation system Allocation of stocks based on KPIs of medium-term management plan (EPS, ROIC, ROE) <Voluntary establishment of Nominating and Compensation Committee> Committee comprising two external directors and one internal director <Commencement of Future Leader Development Program> Program created under guidance of external directors and Hitotsubashi University graduate school 7

8 ESG Topics Corporate value highly evaluated in recognition of MARUI GROUP as a forerunner in ESG management Need to establish long-term vision and KPIs to guide further improvements in corporate value MARUI GROUP s Stock Price ( 31, 2017 indexed to 100) Inclusion in JPX Nikkei 400 Index MARUI GROUP Nikkei , 2017 Oct Oct

9 MARUI GROUP s Stock Price Oct. 2015, Ikuboss Award Grand Prix Oct. 2014, Ikumen Award Special Encouragement Prize Jun. 2014, Ms. Okajima became an External Director Feb. 2018, Health & Productivity Stock Selection Oct. 2017, work with pride PRIDE INDEX Gold 2018, Nadeshiko Brand MARUI GROUP Stock price 222 MARUI GROUP EPS 193 TOPIX 166 Jul. 2017, Inclusion in three ESG indexes utilized by the GPIF Jul. 2016, Platinum Kurumin 2015 Sep. 2016, Ikumen Enterprise Award Grand Prix 2016 Oct. 2018, Excellent Enterprise of Health and Productivity Management White 500 selection 2017 P/E(X)