Marui : Notice Regarding Abolition of Shareholder Special Benefit Program and Revision of Dividend Forecast for the Fiscal Year Ending March 2023(Implementation of Special Dividends)

August 5, 2022

Company Name: MARUI GROUP CO., LTD.

Representative Name: Hiroshi Aoi,

President and Representative Director

(Securities Code: 8252, Tokyo Stock Exchange,

Prime Market)

Inquiries: Takahiro Matsumoto,

General Manager, General Affairs Department

(TEL: [phone])

Notice Regarding Abolition of Shareholder Special Benefit Program and Revision of Dividend Forecast for the Fiscal Year Ending March 2023 (Implementation of Special Dividends)

Marui Group Co., Ltd. hereby announces that it has resolved to abolish the shareholder special benefit program as described below at its Board of Directors meeting held on August 5, 2022 and decided to submit a proposal regarding a revision to the dividend forecast for the fiscal year ending March 31, 2023 (implementation of special dividends) to the 87th Ordinary General Meeting of Shareholders to be held in June 2023.

1. Abolition of shareholder special benefit program

1. Reasons for the abolition

Since 2011, the Company has been offering a shareholder special benefit program with the aim of deepening understanding of the Group by encouraging shareholders to use the Group's stores, mail-orders, and EPOS Card. At the same time, the Company has set standards for the dividend payout ratio and total return ratio to increase shareholder returns and has promoted long-term and continuous dividend growth and purchase of treasury stock.

However, after careful consideration from the viewpoint of fair profit distribution to all shareholders, the Company has decided to abolish the shareholder special benefit program and concentrate on profit distribution through dividends, etc. in the future.

(2) Timing of the abolition

The shareholder special benefit program will be abolished shareholders registered in the Company's shareholder registry with the record date of September 30, 2022.

after the last distribution to (holding 100 shares or more)

＜Contact for inquiries regarding the abolition of the shareholder special benefit program＞ General Affairs Section, General Affairs Department, Marui Group Co., Ltd.

03-3384-0101

(10:00 a.m. to 6:00 p.m., except Wednesdays, Sundays, and year-end and New Year holidays)

2. Revision of dividend forecast for the fiscal year ending March 31, 2023 (implementation of special dividends)

1. Details of the revision

		Annual dividend
	2Q-End	FY-End	Total
Previous forecast	29 yen	29 yen	58 yen
(Announced on May 12, 2022)
Revised Forecast	29 yen	30 yen	59 yen
Ordinary dividend 29 yen	Ordinary dividend 58 yen
		Special dividend 1 yen	Special dividend 1 yen
Actual dividends for the
previous period	26 yen	26 yen	52 yen
(Year ended March 31, 2022)

(2) Reasons for the revision

Under our medium-term management plan, which will conclude in the fiscal year ending March 31, 2026, the Company is working to make effective use of cash flows generated by its business operations and strengthen investment in growth and shareholder returns.

For the fiscal year ending March 31, 2023, the Company declared an interim dividend of 29 yen and a year-end dividend of 29 yen, based on its basic policy of shareholder returns to increase dividends continuously over the long term. In addition, following the abolition of the shareholder special benefit program, the Company has decided to submit a proposal to the general meeting of shareholders to be held in June 2023 regarding the implementation of a special dividend of 1 yen per share to all shareholders listed in the Company's shareholder registry with the record date of March 31, 2023.

As a result, the annual dividend for the fiscal year ending March 31, 2023 is expected to be 59 yen.

The Company will strive to meet the expectations of our shareholders while continuing to position the return of profits to our shareholders as an important management issue.

Basic Policy on Shareholder Returns

・The Company will strengthen investment in growth and shareholder returns based on its medium- term management plan, which will conclude in the fiscal year ending March 31, 2026. Specifically, the Company expects to generate 230 billion yen in basic operating cash flow over the five-year period of the medium-term management plan, of which approximately 100 billion yen will be allocated for shareholder returns. The breakdown is 80 billion yen in dividends and 20 billion yen in the purchase of treasury stock.

・With regard to dividends, the Company will strive to achieve both "high growth" and "high returns" by continuously raising the level of dividends in line with long-term growth in EPS. The consolidated dividend payout ratio is targeted at around 55% from the fiscal year ending March 31, 2024 onward, aiming to increase dividends continuously over the long term.

・Taking into consideration the overall cash flow situation and other factors, the Company will purchase the treasury stock at an appropriate time, with a target consolidated total return ratio of 70%, in order to improve capital efficiency and shareholder returns. In addition, for the purpose of capital optimization, the Company plans to purchase 50 billion yen of its treasury stock during the period of the mid-term management plan. In principle, the acquired treasury stock will be canceled.