Marui Group Co Ltd Ord

My name is Kato. So I'll talk about the overview of the financial results as well as the outlook for the March end of 2027. So first of all, the consolidated financial results. This is the three points in the financial results digest highlights. EPS has increased by 11% to 158.4 yen. ROE is 11.6%. ROIC is 4%. so three indices have been all achieved its targets in a consolidated profit 13 increase to become 50.2 billion yen this is an increase in five consecutive uh quarters and achieve this target in segment retail 2.3 billion yen increase of the profits fintech 3 billion increase and achieve the targets and also the and also the seven percent increase in 20.5 bm in the Trans profits and the achieve seven by five million yen to achieve it start plan that is so finisher the 11.6 percent in ROIC and work otherwise ROE in the 11.6 percent Exceeding the shareholder equity cost like exceeding the work and also this is the final group and total sales and has a record high uh 5.7 in the increase by the previous quarter 52.2 billion yen in operating profits and also 1.9 billion yen exceeded to become uh 20.5 billion yen so the operating profits count profits are also achieved this status under the 3 billion yen increase due to the non-operating expenses. However, the current profits increased by 7%. Extraordinary profits in accordance with the impairment of equity as well as some of the loss due to the closure of the store. This current profits 7% increase to achieve 28.5 billion yen. So in the fintech profits, this is the revenue process and operating profits. Retail operating profits has increased to become 11.2 billion yen. Fintech operating profits is record high, 47 billion yen. Both segments achieved increased profits. And then also the retail plus the fintech retail plus 2.6 billion yen, fintech plus 6.8 billion yen in total expenses plus 100 million yen, excluding the special factors that is a 9.5 billion yen increase of profits. and also tenant revenue have increased and the increase the expense has increased that is the uh europe achieved the 11.2 billion yen for the the rents and the expenses the that the those proportional events has increased this is the uh transaction volume in the 44 months as increased the previous year and it is a higher level than the tokyo region uh department store in the 111 percent uh compared to the previous year in the tenant revenue uh segments the minus 500 million yen and also the the due to the uh variable rents uh 2.3 billion in increase in the tenant revenue and this is the uh card and the this is the uh uh due to the sales increase of this Area known operating area having decreased declined to four thousand seven hundred civil Due to the assembly withdrawal of our own cell our own thought base and compared 5% increase and now became 70% neck as planned the category has been increasing The next is a fintech situations in the fintech and this is the breakdown of the opposing profits and In this, due to the change of the revolving and installment payments, the 6.8 billion yen increase in Fintech, and then this is the, including the special factors, it is a 3 billion yen increase. The card credit, this is the card and credit card, and in the 10% increase, 1.2%. So this is 1.2 trillion yen. This is a record high. And this is the merchant commission rate. This is the merchant commission rate compared to the, due to the revision of the foreign exchange rate fees, they have increased by 32%. And this is the revolving and installment payments. In March ending, the 473.2 billion yen expanded. And this increase, this is looking at the industry compared to the March, the 1.1 times in 2020 March, but now it is 1.7 times that we have the case compared to the other peers in the industry. This is the commission fee revenue due to the revision of the fees since October has expanded to 69 billion yen, which is a 9.4 billion yen increase. Next is the new memberships. In the 2020 March, the entire new card issuance is still ongoing, but then card supporting the ski has increased and increased by 50,000 to achieve the 870,000 people. members so these are card numbers of membership is the record high 8.3 million yen the city supporting card members are 1.38 million people the platinum and gold card percentage is including that if ratio is 64 percent This is the decline in the repayment of the profit, repayment of the yield and interest. So the 1.5 billion yen has been placed as a provision for the loss of the repayment of that.

This is the total asset with the account receivable increase compared to last year and 87.9 billion increase of 1.1413 trillion yen. Equity ratio compared to last year and less by 2%, so 21.4%. In terms of the capital allocation, the basic cash flow, we had the 2.6 borrowing, 4.5, 1.8 for growth, and then dividend, 21.4, and then the share buyback, 7.7. Also, in terms of the Human resource investment, 9.7. Total investment is 27.7. ESG situation. The main external valuation. METI Nadeshco brand, we were the first nine years in a row. Selection. Other health-related management, we are the first for retail. We are selected for the last nine years consecutively. In terms of the renewable energy, 100%, we have our own solar generation from 27. We will be improving by 97% for this year, and then we're going to have our own generator during the Ukraine crisis. our electricity bill went up by 30 percent 27 march even with the middle east crisis with the tendency included we will be plus 17 percent right so it's half of the ukraine crisis In terms of the outlook for March 27, EPS 4% growth, $16.4 billion, already 11.8% will be higher than previous year. Group total will be 9% increase, $5.9 trillion, and then operating profit 10% increase, $55 billion, then net income will be 4% increase, $29.5 billion. In terms of the ordinary profit, With the interest rate going, we have minus 34, but we have the operating profit, so some 3% increase of the ordinary profit, $44 billion. By segment, this is the operating profit. Retail, 3% increase, $11.5 billion. Decade percent increase, $51 billion. The retail segment operating profit, plus and minuses, tenant income and event will be expanding. In terms of the other utility costs, we have increase of $800 billion. In lessening of the real estate increase, there will be down of 500 billion, so we will have a 300 million yen or so operating profit for fintech. With the expansion, the merchant fees and the installment and repayment fee changes. Actual operating profit will be 3.5 billion. Because of the interest repayment loss that we accounted for last year, there will be 4 billion yen for the operating profit. Per head dividend, DOE 10% we will maintain for March 27. It will increase by 3 yen to 134 yen. We are increasing for the last 15 terms. So that's all from me. Thank you so much. So now we would like to have direction for Suki Business. Our CEO, Mr. Aoi, will present. So this is Aoi. I would like to talk about the business supporting Suki and going forward. We have the vision of the economy that is written by Suki, so we have the business that is supporting Suki. The business that supports Suki through Suki, it's consuming something for somebody and society through Suki is what we want to do the impact to society. We are using our benefit to launch into new businesses and evolve into the new businesses. First, we will do the businesses to support Suki. We, up to now, Retail Fintech, we have the co-creation investment with the Trilology. So we will put Suki in the center. We would evolve all of the three aspects. First, retail. in retail we have events goods cards suki support unit will be the main ones store management operation we have events to support ev and then our own private brand expertise goods will be utilized and our unique feature we will continue to draw more card membership through our services the unit that supports suki we are able to change our way of managing stores as well as opening our policies yokohama where we closed in february we have a unit specializing in suki to reopen yokohama membership 70 percent are coming to the suki events so through this change One-forty-fifth of the area and then one-tenth of the staff, we are able to make sure that we are drawing more membership. So it's much more efficient sales. Especially efficient operation, we have other different types of outlets. In Osaka, after Nanba Maru, we have our second store that is supporting Tsuki. if the operation unit succeeds then we can make the asset of the store efficient so that we will be more of the asset like business next we will talk about fintech up to now gold card was drawing the growth and driving growth by adding a suki support card we can grow in new areas up to now becoming a general card to gold card we are seeing more usage and then people are using their gold card as their main card and they will be more usage so it's a two-stage approach for our royal customer Royal customer is simple for the gold card, but it's very effective. Last 20 years, we have had 19% increase every year, which is a very high growth. March 26, also, in terms of how we traded, 75% increase was from the gold card. As you can see, absolute gold card. On the other hand, Apple's card, we think there is potential that we can draw from. This diagram I would like to use. This is the royal customer outlined by gold card in numbers. The new member, 100, of that 45% of our customers, invitations are sent out for a gold card. Of that, 20% of the customers switch to gold card. And of that, 15% of them may get our main card, so therefore they become a true royal customer. On the other hand, those customers who do not apply to the invitation, or even if they become a gold card, they don't use it as a main card, there are 5% of those, so total 30% of those. So meaning that the loyal customers, 15%, double that, 30% is still left behind. So that's our great potential. Therefore, utilizing the Suki support card mission, we would like to take all of these 30% customers into our loyal customer path. To do so, the core competence, we would like to co-create trust.

For that purpose, we will practice co-creation of the trust, which is a co-competence. The founders expressed the trust is something not given to the customer, but rather trust is to be co-created with the customer. Gold card is relatively closer to the trust that we give to the customer. But the suki supporting card is the co-creating the trust and loyal customer creation will be proceeded. So here the important point is the customers, the self-confidence and self-positive attitude toward oneself in regards to the management of money. Japanese people in general have less knowledge about the finances and their self-confidence is quite low in terms of financial management. Therefore, some customers feel I'm not really good enough to have the gold card, so therefore they would hesitate to switch to the gold card, and they would not use the gold card. That is about 30% of the customers that I just explained. By the city supporting card, for them to become loyal customers, and most specifically until 1970s, since inception in my restore we had the communication with the customers face to face which have done we have done in our stores in application ai technology utilized to be reproduced again such a customer interaction and based on that to support the customers self-confidence by providing the appropriate feedback at the appropriate timing This communication with customers, that is the trust, is something that is not just given, but also the customer themselves would grow that confidence and to gain the trust. So that they, as a result of the one's trust to be grown and courage to be grown, each customer, they would eventually become a loyal customer. And that is a business to be supported. so the city supporting card the co-creation of the trust in the volume of the 1.5 to 2 trillion yen will be the increase of the revenue and also in the invitation standard is not reached in those are 55 percent those are the other companies gray card are used as a main card but then by recommending 50 supporting card i will promote the switching and churning to our main to the main card to become use hours So in the pet card, 10% of the members are Epos Gold card, switch from Epos Gold card. So among new members, the other company's main card, there are certain numbers of customers who have switched from other company's main card to our card. And those city supporting card. Other than just the status that you can buy paying money, but also represented in the love for their pets. This is the priceless suki, or like, or love, and is valued as very important for the customer. So through this card, supporting suki, or their individual interest, that has been those 55% of the customers, Now, recommending them to switch to our cards, for them to become our loyal customers. In 2031, 15% of the customers will become loyal customers by 2031, so therefore the transaction volume should reach an increase of 300 billion yen to 500 billion yen. By March ending in 2031, the main card ratio will increase from 23% to 35%. So the group's transaction volume to reach 10 trillion yen is our target. This is a fusion of retail and fintech. and now the card membership to be collected and the loyal customers will be combining retail and fintech so that we can support the long-lasting customer journey not just the event for to get our members but also the city supporting card we provide the expense experiences This is linked with the lifestyle application. The event can be reserved, and this is a service for the members, and this is implemented. Then, the customers like a Suki-based event announcement, as well as the preferred reservation and invitation can be used at their benefits. These goods are sold in charge of the details. The goods provided for the members are differently resourced from the person in charge but now we're going to merge the two by having the more unique own goods as well as the through the sales is also monetize our sales and also to the original benefits provided to our card card members as well and to other as a cost as our cost So the retail and card will be combined to be used. Initial cost will be hedged by the revenues in retail. And also the initial red ink can be recovered to achieve the, over the lifetime, achieving the business model and the profits. And so the need and sales and fintech to be fused together so that we can achieve this effect by the joint cost sharing. so that we can increase our profit ratio. Start-up collaboration to be increased in co-creation has been reduced in the recent years due to the review on collaboration policy. But in the future, from now on, we'll be supporting the business, supporting the Suki, and also conversion, IP and contents, those non-tangible assets investments will be done to promote further collaboration. Next is the DX strategy, Digital Transformation Strategy, supporting Suki. It's a communication, a more tailored, personalized communication to promote the creation of the trust and also data to be utilized and AI to be utilized and to build and achieve marketing. Events and goods are linked. The online and offline experiences can be combined together through the suki or likes to support each individual happiness. So this strategy is a professional resources in the DX area. We didn't have much of a tech image before in Mare Group, but now we have the thanks to the efforts by Mr. Tsuchiya, our CDXO, former Goodpatch, uh the good former money group a good patch president and from april tokyo university yusaka matsuo research x uh coming from that a research lab uh ai and mrs uh executive chief technology officer and good patch also a joint venture mutual ux design uh special software development internal can be internally done in a Marui unit, product development specialist, as well as key supporting unit, data utilization experts as well. And the GX strategy will be further promoted by supporting the team. So this is for the co-creation, as well as also how we should work in the future, business development to be made. and most physically 20 since 2024 employees own likes and city can be developed into business development and city supporting business concours has been done 240 employees in the past two years have applied in 120 152 plans and they are like in the museums and art museums will be museum card and support animal card has been commercialized we have been expanding the participants to outside or to the public from 2026 a broader idea has been collected first try but out of 170 applications about 130 of them are from outside