Marui Group Co Ltd Q2 2025 Earnings Presentation Transcript

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

Question: Taka Hassan - MI securities - Analyst : This is Taka Hassan of MI Securities. Thank you for the detailed explanation and I have questions, one for Kato San and one for Ouran question for Kaan. I think the second quarter results was a favorable but against your full year guidance, what was your the progress achievement for your profit? You showed your outlook for the second half too. So I understand your progress is in line with your the four year guidance. But if there is any GAAP for like a fintech business, can you please share us some details? Okay, so I will be giving an answer for your question. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 12, 2024 / 9:00AM, 8252.T - Q2 2025 Marui Group Co Ltd Earnings Presentation

Question: Taka Hassan - MI securities - Analyst : So first of all, we have been improving efficiency of our stores. We have taken a proactive approach in the measures to do that. And however, we still think there is a further room for improvement. And if I can share what we have done already in the last 10 years, so we have shifted the retail business to a fixed term contract and we have been reducing the retail stores.

Question: Taka Hassan - MI securities - Analyst : Thank you for the answer if I can confirm what I heard. So the economy driven by individual interest, I think it was a very interesting expression. So the economy driven by interest for events or merchandises because these are the things people like and have strong interest in. Even if the stores are in the far away from where you live, they will still be coming to visit your stores. So that will be slightly different from copa market. You can reach out to the wider the market area. And by making more investment in those flagship stores, those stores can attract customers from wider area. Is that the right understanding? Yes, exactly.

Question: Shrioka - Dava Securities - Analyst : This is actually Miss. Shrioka. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 12, 2024 / 9:00AM, 8252.T - Q2 2025 Marui Group Co Ltd Earnings Presentation Thank you for taking my questions. I have two questions. First question is regarding the revolving and installment payments commissions increase and what are the thinking behind that? And could you give us updates on page 78 of the document, the fintech revenue structure changes are explained and the funding cost is increasing and under the circumstances, you have been taking measures to increase the commissions and are they included in your reform measures? And what is your current thinking around this?

Question: Shrioka - Dava Securities - Analyst : Thank you very much. Second question is regarding the next midterm plan, the gross story were explained in a very easy to understand manner, but this midterm plan updates or EPS 200 OP JPY60 billion. When it comes to the thinking behind those numbers, when you make the financial results briefing for the fiscal year 2024 you'll be also talking about the fiscal year 2025 forecast or at the time of the Ir day in December. You'll be sharing the thinking behind the numbers for this midterm plan, the current midterm plan. When will we be talking about your thinking around this midterm plan?

Question: Kanamori San - Okasa San Securities - Analyst : This is a Kanamori of Securities. Okay. I have two questions in the first quarter. This will be a question for Koan. So for revenue and then the expenses, you always, they present the water flow chart. As of the first quarter, you have done some adjustment for the trans transaction volume and FP and a expenses by making flexible adjustment that you were able to control the cost. So you did not change your operating the profit, the budget and now you have presented your outlook for the second half. Maybe my other question is very granular but if we can combine the first half results in the second half outlook, so the total revenue for the full year. So the adjustment, the revenue is still the slightly less than what you have announced. Would this maybe this will be a minor issue that will be a but the India, the fintech business environment, are you taking more cautious stance? What you expect this to be the minimum level you can achieve under the current circumstance.

Question: Kanamori San - Okasa San Securities - Analyst : And my second question is about the medium term capital allocation. You have provided various information.

Question: Kanamori San - Okasa San Securities - Analyst : Thank you very much. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 12, 2024 / 9:00AM, 8252.T - Q2 2025 Marui Group Co Ltd Earnings Presentation

Question: Kam Marie - Nico Securities - Analyst : This is Kam Marie from Nico Securities. I would like to confirm the detailed numbers and fintech related matters. And this is a rather detailed question. A couple of things. First, is the gain on the liquidated account receivables. What is the size of this in the previous term? You wanted to level out the differences between the quarters and 1st and 2nd quarters, this GAAP of JPY1 billion exists. And I don't think you can completely eliminate this GAAP, but is this a level of GAAP that we will continue to see in the future?

Question: Kam Marie - Nico Securities - Analyst : Well, the small to medium sized affiliate merchant commissions, could you have been asked to decrease or revise downwards? And you showed and disclosed the risk and at this point in time, what is the risk in terms of the negative impact on the profit? And what are the countermeasures that you have in mind to offset that negative impact?

Question: Kam Marie - Nico Securities - Analyst : As for the small to medium sized affiliate merchant IRF revisions, what could be the possible impact of that on our performance is that the question? Yes, for sure, there was such an article that was published and we are fully aware of the situation.

Question: Kam Marie - Nico Securities - Analyst : Yes, thank you. Thank.

Question: Muratas San - JP Morgan Securities - Analyst : Can you hear me? Yes, this is Muratas San of JP Morgan Securities. I have two questions. My first question is about a question as last year credit card therefore, to support the interest, the maximum limit you're going to lift it and it's not included in your guidance. This year, you're going to implement this study on the full scale from November and there it will be a JPY30 billion the contribution this year and the next year there will be, it will double or triple and you're going to expect the profit contribution too. But if you can give us an update on the contribution to your business performance, please share numbers.

Question: Muratas San - JP Morgan Securities - Analyst : Is that the right understanding? Yes, thank you. And my another question is about your strategy. So you will be implementing business strategies based on the individual interests. And you understand this is a blue ocean with the other a lot of the growth opportunity which I thought was interesting story. The stories you shared with the word were mainly positive outlook and as you promote these strategies going forward, what could possibly be risks or challenges for you? If there are any, please share. If there is no risks or challenges at all, that's okay. But if there are any, please share.

Question: Muratas San - JP Morgan Securities - Analyst : Thank you.