Marui Group Co., Ltd. (the "Company") hereby announces that it has resolved at its Board of Directors meeting held on May 9, 2023, to change its capital policy, as follows.
1. Reason for the changes
To date, the Group has promoted capital optimization in line with the transformation of its business structure. First, in line with the transformation to a FinTech-led business structure, the Company purchased approximately 100 billion yen of treasury stock under a policy to reduce the equity ratio of the FinTech segment to about 10%, which is comparable to the industry average, and the Company achieved this by the fiscal year ended March 31, 2021. Next, under the current five-yearmedium-term management plan, which ends in the fiscal year ending March 31, 2026, the Company purchased 50 billion yen of treasury stock by the fiscal year ended March 31, 2023, to redistribute excess capital in the retailing segment. As a result, the equity ratio, which had been at a high level, has reached the target of about 25%. Now that the Company has achieved its target of the optimal balance sheet, the Company uses dividend on equity (DOE) as a new indicator for dividends to achieve a policy of stable, long-term dividend increases more than ever before. In addition, the Company will change its method of purchasing treasury stock from a planned acquisition, used to date, to a flexible method that comprehensively takes into account the financial condition, share price level, and other factors.
2. Details of the changes Before the changes
With regard to dividends, the Company will strive to continuously raise the level of dividends in line with the long-term growth of EPS and achieve both "high growth" and "high returns."
The Company will gradually increase the guideline of the consolidated dividend payout ratio from 40% to around 55% as a target by the fiscal year ending March 31, 2024, aiming for long-term and continuous dividend increases.
The Company will purchase treasury stock at an appropriate time with a target consolidated total return ratio of 70% in order to improve capital efficiency and shareholder profits by comprehensively taking into account cash flow conditions, and other factors.
After the changes
With regard to dividends, the Company will strive to continuously raise the level of dividends based on the long-term growth of EPS and achieve both "high growth" and "high returns."
The Company will aim to achieve a policy of stable, long-term dividend increases with a dividend on equity ratio (DOE) of around 8% as a guideline.
The Company will purchase treasury stock flexibly in order to improve capital efficiency and shareholder profits by comprehensively taking into account the financial condition, share price level, and other factors.
3. Timing of application
Effective from the fiscal year ending March 31, 2024.
4. Dividend forecast for the fiscal year ending March 31, 2024
Dividend per share
Dividend
End of the
on Equity
second
End of term
Total
quarter
Fiscal year
50.00 yen
51.00 yen
101.00 yen
8.0%
ending March 31,
2024 (forecast)
Fiscal Year Ended
29.00 yen
30.00 yen
59.00 yen
4.6%
March 31, 2023
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Marui Group Co. Ltd. published this content on 02 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 June 2023 08:20:08 UTC.
Marui Group Co, Ltd. specializes in retailing. Net sales break down by activity as follows:
- financial services (65.2%): emission of credit cards, consumer credits grant and insurance services;
- retail distribution (34.8%): sale of clothes, decorative items, domestic articles and food products. The group also provides transportation, advertising services, stores maintenance, management and development, etc.
MARUI GROUP CO., LTD. 
