Full Year 2025 Marui Group Co Ltd Earnings Presentation Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Takahashi - Mizuho Securities - Analyst : I'm Takahashi from Mizuho Securities. Thank you for the presentation. I have two questions. My first question is directed to [Kato] and the second question is to the President [Aai]. So let me take those questions. The first question to [Kato]. The financial strategy in MTP and ROE target 15%, the relationship between the 26 months ago. There were rough plans are being presented and at that time, ROE target was 70% to 20%. This time you're saying 50%. It is still high, but what is the background of this change? You may be looking at external environment and interest rate hikes as a CFO, if you could explain about that. My second question is to Mr. Aoi. This time Looking at the press release, when it says three business integrated in fintech, I got an impression that you're going to become quite a general card credit card company, but Listening to the presentation, I understand that that is not the case and I'm relieved. Before the current MDP is started, the initiatives were implemented, and now those are bearing fruits. You talked about. Large stores being a binding, and now you're talking about new events, fintech and goods, and I think you're more agile in developing your business across Japan. Employees that supported and the relationship with the commercial facilities. I think you have been nurturing them until now and Out of various possibilities, what is the strategic or competitive advantage of this strategy? I cannot imagine about your peers, but how confident are you on the competitive advantage if you could talk a little bit more about that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 13, 2025 / 9:00AM, 8252.T - Full Year 2025 Marui Group Co Ltd Earnings Presentation

Question: Takahashi - Mizuho Securities - Analyst : Thank you. Hiroshi Aoi - Marui Co Ltd - President, Chief Executive Officer, Representative Executive Officer, Representative Director As you have asked in your question, we have retail credit card, and three business integration, and then we're going to transfer our business in a major way to support individual, what is our competitive advantage. That is the essence of a question, as you have correctly pointed out, the biggest differentiator, competitive edge is our people and the know-how that our human capital has, for example, event planning and operation, our company's employees are very good at event planning and organization. This may be a personal view, but private brand compared to private brand or a merchandizing, I feel that our staff is better at event planning and organization. In addition, product manufacturing, planning, production to sales, we have been developing our expertise in that area together with event, we will sell merchandises. We can do both. On top of that, we have memberships of credit cards. We solicit members and so the through a series of initiatives that we can. Solicit members, so event planning, selling of merchandises, and recruiting members, those three will be integrated and same staff will face consumers in these three areas and having such a know-how is the biggest differentiator of our company. Another point is our stores and regarding nationwide deployment of stores, large. A stores a minimum 3,000 stores would be the guide. It is bigger than 10,000. Well, our, conventional stores have been big and asset heavy, but new unit is very different, very light, and as was explained just now. In the upper floors of the commercial facilities, and the traffic can be generated by ourselves. So the content is such that people will come to small space and compared to ground floors or lower floors, the rent is economical and on top of that we can gather consumers by ourselves. Market ourselves so from the developer and commercial facilities perspective. And they favor us, so, oh. That is our position and the possibility to open new stores will increase dramatically. So in regions where we couldn't open stores, for example, in Nagoya or Hiroshima or Sendai in those areas, we can open new stores in a flexible manner, since it's compact size. Stores and the efficiency of gathering members is 30 times. So it's the floor area is compact, small at low cost. Maximum impact can be achieved. So we would like to bring this to success. Once we can expand this nationwide, then existing stores, efficiency can be improved and it makes it easier to improve efficiency. So new unit nationwide deployment and existing store efficiency improvement, we can pursue both and contribute to each other, and we want to realize that format.