Mercari-Fact-book_en

Transcript

1. As of August 2026
2. Index Company Overview P3: Group Mission P4–9: Company Overview P10: FY2027.6 Business Objectives P11–12: AI-Native Transformation P13: Consolidated Results P14: Marketplace Results P15: Market Potential of C2C E-Commerce in Japan P16: Positive Impact of Mercari’s Business Businesses P17: Marketplace P19–24: Mercari P25–26: Mercari Shops P27–28: Crossborder Transactions Business P29–31: M Department P32–40: Safety & Security Initiatives P41–44: P45–56: P57–70: P71–77: Fintech Merpay Mercoin Mercari US Appendix P78–82: P83: P84: P85–86: P87: P88: P90–93: Leadership Profiles Work Environment ESG—Materiality Update Inclusion & Diversity (I&D) Mercari R4D (R&D) Sports Business History 2
3. Group Mission “Circulate all forms of value to unleash the potential in all people” 3
4. Company Overview Mercari Group is made up of Mercari, Inc., and its consolidated subsidiaries. Mercari Group Japan Business Mercari, Inc. (US) Marketplace Mercari, Inc. Established Activities Location February 1, 2013 Planning, development, and operation of the Mercari marketplace app Roppongi Hills Mori Tower, 6-10-1 Roppongi, Minato-ku, Tokyo 106-6125, Japan Tokyo, Fukuoka Shintaro Yamada Masato Yamamoto Offices Representative Executive Officer, Senior Vice President of Japan Business Shunsuke Sako Representative of Mercari marketplace Fintech Merpay, Inc. 1. November 20, 2017 2. Financial-related businesses 3. Takeshi Nagasawa Mercoin, Inc. 1. April 28, 2021 2. Cryptoasset- and blockchain-related services 3. Keita Nakamura 1. January 2014 2. Planning, development, and operation of the US version of Mercari 3. Jeff LeBeau 4. Palo Alto, CA, USA Kashima Antlers F.C. Co., Ltd. 1. October 1, 1991 2. Management of a soccer club 3. Fumiaki Koizumi 4. Higashiyama 2887, Aō, Kashima, Ibaraki, Japan Mercari Software Technologies India Private Limited 1. June 2022 2. Development of internet services 3. Carlos Donderis (Managing Director) 4. Bangalore, Karnataka, India 1. Established, 2. Activities, 3. Representative, 4. Location 4
5. Circulating All Forms of Value in Mercari’s Ecosystem Sales balance Money Credit Points Cryptoassets NFTs Mobile data Buying on Mercari Mercard Online payments Code payments Buying cryptoassets Paying with bitcoin NFTs Mobile data Annual GMV: 1.2T JPY MAU: 24M 5
6. About Established Offices Headcount February 1st, 2013 Tokyo, Fukuoka, Palo Alto, Bangalore 2,065 (including subsidiaries) 6
7. Board of Directors Structure In September 2023, transitioned from a company with company auditors to a Company with Three Committees to realize a transparent and highly diverse organization. In September 2025, established the Lead Independent Director1 role to further enhance the independence and strengthen the highly effective supervision of the Board of Directors. 12 Directors Independent Directors (8) Directors (4) Shintaro Yamada Fumiaki Koizumi President / CEO of Representative Executive Kashima Antlers F.C. Co., Officer and CEO Ltd. Sayaka Eda Mayumi Tochinoki Executive Officer, Senior Vice President of Corporate, and CFO Kazuhiko Toyama Makiko Shinoda Shiho Konno Mayumi Umezawa Kikka Hanazawa Kumi Fujisawa Masahiro Kotosaka Lead Independent Director Chair of the Nominating Committee Chair of the Compensation Committee Chair of the Audit Committee Takuya Kitagawa 1. Selected by internal voting among Independent Directors, the Lead Independent Director takes the role of leading the administration, etc. of the Independent Directors’ executive sessions and facilitating the enhancement of collaboration and building of relationships between Independent Directors. If necessary, this role also includes collecting the opinions of Independent Directors and holding discussions with the Chairperson of the Board of Directors, the Representative Executive Officer and CEO, and executive officers. 7
8. Our Leadership: Executive Officers Shintaro Yamada Masato Yamamoto Sayaka Eda Shuji Kawano Director, Representative Executive Officer and CEO Executive Officer, Senior Vice President of Japan Business Executive Officer, Senior Vice President of Corporate, and Chief Financial Officer Executive Officer, Senior Vice President of Management Strategy 8
9. Values Go Bold All for One Be a Pro Move Fast 9
10. FY2027.6 Business Objectives Consolidated 連結 Guidance Policy/Major Initiatives Core operating profit1 Revenue 260.0–290.0B JPY 45.0B JPY or more Marketplace Fintech US Guidance Guidance Guidance GMV growth rate: +10–15% YoY Core operating profit: 45.0B JPY or more Core operating profit: 10.0B JPY or more Policy/Major Initiatives - • Balance ongoing high growth with investment for mid- to long-term growth • Essentially aim for top-line growth that will lead to increased profits • Promote a shift toward AI-Native with AI agents as a foundation Enhance the product’s core experience Increase time spent on the app by enhancing entertainment value Expand direct crossborder transactions2 GMV growth rate: +10% or more YoY Continue to break even3 Policy/Major Initiatives - - Expand user demographics and promote app usage Continuously accumulate credit balance premised on appropriate risk management Release more app features by leveraging partnerships Policy/Major Initiatives - Enhance the product’s core experience Increase the average purchase amount 1. Core operating profit is defined as IFRS operating profit excluding other income/expenses, etc. 2. Consumers overseas sign up for Mercari and purchase items through the global app, which supports local languages and currencies; the app offers inspections of all items by Mercari to ensure quality before overseas shipment, as well as a consistent UX where all processes from payment to package tracking are available in the app 3. Envisioning break-even based on IFRS core operating profit 10
11. 1-Year Progress Since AI-Native Declaration: From Building the Foundation to Creating Results Productivity Boosts Owing to AI-Native Transformation Promoting AI Usage and Improving Productivity Business Results and Structure Behind Value Creation Product and Business Results • 100 • We have achieved a state where % of employees use AI tools1. Currently, we are holding an initiative called “AI Agent Day” where engineers and non-engineers alike create AI agents designed to solve issues faced during daily work, thereby further improving employees’ AI abilities. • Productivity improvements reached approximately 495,000 hours out of an estimated 1 million-hour potential. We have also identified a further 770,000 hours of potential improvements through work process transformation premised on AI2. • • Average development output per engineer has increased 7.6 times compared to before adopting AI (FY2024.6) . 3 Contributed to business outcomes through AI adoption in our products and AI-Native transformation of our development processes ◦ Improved recommendation accuracy for search and home screen ◦ Increased listing completion rate through AI Listing Support feature, which uses AI to make suggestions ◦ Further established a safe and secure transaction environment through enhanced fraud monitoring utilizing AI ◦ Built and added features to the Mercari Mobile service in a short period of time with smaller teams using AI-first development Automated video ad creative production using AI, winning multiple industry awards, such as gold and silver prizes in the YouTube Works Awards Speed and Safety • Balanced the speed of our AI-Native transformation and ensured safety through establishing a dedicated AI governance organization4 and formulating the Mercari Group AI Usage Policy5 1. The percentage of Group employees (excluding employees on leave, employees with confirmed resignations, and Kashima Antlers employees) who use any of the major AI tools (ChatGPT, Gemini, Claude, Cursor, LiteLLM, and Notion AI) as of January 31, 2026 2. Calculated by assuming a 100% AI tool utilization rate among employees (as of January 31, 2026) and applying a work-reduction rate achieved by adopting AI for applicable tasks 3. Per-engineer development output in Mercari Group, calculated separately for FY2024.6 and FY2026.6, by dividing the number of code changes in each year by the number of engineers employed at that time 4. Established in October 2025 5. Formulated in March 2026 11
12. Future Direction of AI-Native Transformation We have set “AI-Native for Hypergrowth” as our FY27.6 group theme. Our previous CTO1 will serve concurrently as CHRO and CAIO (Chief AI Officer), driving HR and AI initiatives in an integrated manner, and redesigning our workflows and organizational structures based on AI agents. Product Innovation Organizational Reform • Accelerate development of a proprietary AI model based on Mercari's own data and use cases; introduce a model developed through initiatives2 selected for GENIAC3 into our search and recommendation features, further enhancing the user experience • Expand AI agent development across the entire organization, including non-engineering divisions, completely establishing an environment where AI agents collaborate across all business domains • Enhance CS capabilities through AI; build mechanisms that let users resolve issues without needing to contact customer support, and employ AI agents to handle inquiries to improve response speed and enable multilingual support • Further strengthen early automated detection and removal of fraudulent activity; build a safe and secure usage environment by improving authenticity appraisal quality and processing efficiency, among other measures • Advance development of AI features, such as a shopping agent, to deliver AI-centric user value • Roll out a company-wide “AI Pods” development style, where members in small teams transcend organizational roles and handle the entire development process, from defining specs to QA and release, enabling more projects and accelerating new business creation and new AI-based user experiences • In addition to strengthening AI-based decision support, redesign AI implementation and evaluation systems as a single, integrated effort, including delegating authority to frontline teams and renewing approval processes, thereby accelerating business execution • Employ AI for business reviews conducted by the risk management division and build a system that achieves both review quality assurance and faster turnaround times 1. Official title: Vice President, CTO (Japan Business) 2. Research and development of a foundation model for achieving high-precision AI search and recommendation based on Generative Retrieval technology, leveraging over 4 billion listing data points (data unique to the secondary distribution market) from the marketplace app Mercari, and led by Mercari’s in-house R&D organization R4D 3. A national project led by the Ministry of Economy, Trade and Industry (METI) and the New Energy and Industrial Technology Development Organization ("NEDO"), titled 'Development Project for the Enhancement of Post-5G Information and Communications Systems/Development of Competitive Generative AI Foundation Models (GENIAC) 12
13. Consolidated Results (Full Year) Core Operating Profit1 Revenue (Billion JPY) +19% YoY (Billion JPY) +60% YoY 13 1. Core operating profit is defined as IFRS operating profit excluding other income/expenses, etc.
14. Marketplace—Results (Full Year) GMV1/MAU2 Revenue3 GMV (Billion JPY) MAU (Million users) Core Operating Profit/Margin4 (Billion JPY) (Billion JPY) +5% YoY +15% YoY Core operating profit Core operating margin +16% YoY 1. Aggregate transaction value after adjusting for cancellations (includes transaction value of Mercari NFT) 2. Quarterly average number of registered users who browsed our service (app or web) at least once during a given month, both domestically and internationally 3. The business results of Mercari Hallo are included starting in FY2025.6 Q4 (The Mercari Hallo service was discontinued on December 18, 2025) 4. Core operating profit is defined as IFRS operating profit excluding other income/expenses, etc. +6 ppts YoY +41% YoY 14
15. Market Potential of C2C E-Commerce in Japan The market for C2C e-commerce marketplace apps in Japan has grown to 2,526.9 billion yen (1.8% increase from the previous year) over 13 years. This is enormous growth considering that C2C marketplace apps only started to gain traction in Japan in 2012, and the market continues to hold great potential for growth. C2C EC Market Size in Japan 2,481.7 2,526.9 billion JPY billion JPY 2023 2024 1. Source: Ministry of Economy, Trade and Industry (April 2017, April 2018). The total market size of sales of secondhand goods in stores, sales of secondhand goods online, auctions, etc. Excludes automobiles, motorcycles, and motor scooters. 2. Source: “FY2024 E-Commerce Market Survey Report”, Ministry of Economy, Trade and Industry (published August 26, 2025). Includes B2B and B2C transactions in addition to C2C transactions. 3. Source: “FY2024 E-Commerce Market Survey Report”, Ministry of Economy, Trade and Industry (published August 26, 2025). Includes the C2C EC market, such as marketplace apps and online auctions, and the B2C market for used items (both brick and mortar shops and online shops) 4. Source: Company material; FY2025.6 Q4 Presentation Material 15
16. Positive Impact of Mercari’s Business (Avoided Greenhouse Gas Emissions) By encouraging the concept of reuse through the growth of our business, Mercari contributes to the creation of a circular economy that efficiently circulates natural resources for sustainable growth. ※6 1. Target categories: Clothing; Electronics; Media (books, CDs, DVDs, etc.); Bags; Shoes (expanded from the Sneakers category included in the calculations last year); Washing Machines (added to the calculations this year) 2. Calculations based on items for which a transaction was completed in the target categories on the Mercari Japan and Mercari US services from April 2024 to March 2025 3. CO2 equivalent to one covered baseball stadium: approx. 2,436t-CO2 (covered baseball stadium volume: 1.24M KL; 1 mol = 22.4 L = 44 g-CO2; Source: Tokyo Dome) 4. From “How Much Carbon Dioxide Do Forests Absorb?” published on the website of the Forestry Agency (available only in Japanese) ※7 16 5. From “Carbon Dioxide Emissions in Transport Sector” published on the Ministry of Labour, Infrastructure and Transport website (available only in Japanese) 6. CO2 emissions from household air conditioner usage estimated at 0.36kg/h; from the Decokatsu Database published on the Ministry of the Environment’s website (https://ondankataisaku.env.go.jp/decokatsu/decokatsu_db/) (available only in Japanese) 7. CO2 emissions involved in manufacturing and disposing of/recycling a 500ml plastic bottle estimated at 0.119kg/bottle; from page 17 of “Analysis of the Environmental Burden of Using Reusable Drinking Containers, Cups, and Bottles” published on the Ministry of the Environment’s website (https://www.env.go.jp/recycle/yoki/c_3_report/pdf/h23_lca_01.pdf) (available only in Japanese)
17. Marketplace 17
18. Marketplace Services C2C Transactions B2C Transactions Crossborder Transactions (from Japan to the world) Sales of Refurbished Items* *Secondhand items that have been inspected, repaired, cleaned, etc. by manufacturers or specialists 18
19. What Is Mercari? The Mercari app is a C2C/B2C marketplace where users can easily buy and sell items. • Service launch: July 2013 • Operating systems: Android, iOS (Can also be accessed through web browsers) • Usage fee: Free (Sales fee for sold items: 10% of the sales price) • Regions/languages supported: Base specs for Japan/Japanese (Can be used in approx. 120 countries and territories through crossborder transactions) • Total number of listings to date: More than 5 billion (As of January 2026) • On average, 8.6 items are sold every second on Mercari. 19
20. Mercari’s Strengths Mercari provides our many users with an easy-to-use, fun & engaging, and safe & secure marketplace. Easy-to-Use Fun & Engaging For All Safe & Secure 20
21. Mercari’s Strengths: Easy-to-Use Escrow payment Mercari acts as a go-between in transactions to prevent disputes Listing Convenient AI features Mercari Shipping - Flat-rate shipping across the country - No need to write addresses - Anonymous shipping - Drop-off delivery/unattended shipping - AI Listing Support Barcode Listing Advanced search features ChatGPT integration Payment Payment notification Seller rating Buyer rating Balance Delivery Seller Buyer 21
22. Mercari’s Strengths: Easy-to-Use Simplified listing and communication features We simplify listing with features like Barcode Listing*, AI Listing Support, and Seller Search, which use machine learning. We have also added a feature where users can post images in transaction messages and a search support feature that leverages AI. *Barcode Listing is available for books, music, games, cosmetics/perfumes, consumer electrical appliances, and cameras. 22
23. Mercari’s Strengths: Easy-to-Use Convenient, safe, and secure shipping options We offer a wide range of shipping and delivery options so our users can choose the methods that are right for them. RakuRaku Mercari Shipping YuYu Mercari Shipping Eco Mercari Shipping Pick & Pack TanoMer Shipping Shipping service in partnership with Yamato. This service supports a wide range of item sizes, with safe and secure anonymous shipping and flat rates across Japan. Sellers can ship items from a Yamato Transport Office or a convenience store, use shipping services such as SMARI or PUDO, or have their package collected from their home. Shipping service in partnership with Japan Post. This service supports a wide range of item sizes, with safe and secure anonymous shipping and flat rates across Japan. Sellers can send items from any post office or convenience store, or use shipping services such as SMARI or PUDO. YuPacket Post and YuPacket Post mini packages can be mailed from a post box. Shipping service in partnership with SBS Group that exclusively offers unattended delivery (only available in certain areas). Eco Mercari Shipping enables packages to be shipped for a flat rate of 730 yen. The contactless shipping services SMARI and PUDO allow sellers to send packages from size 60 to 100, and unattended shipping can be used for packages from size 60 to 160. Shipping service in partnership with Art Setting Delivery. No need to pack up the item; just wait at home and we’ll come to you. This shipping service supports a wide range of item sizes from 80 to 450, as well as safe and secure anonymous shipping. The service is perfect for shipping hard-to-pack items like furniture and home appliances, since we handle everything from packing to transport and delivery. 23
24. Mercari’s Strengths: Fun & Engaging for All Buying is like a treasure hunt where you can find any sort of item! ▪ The most bought and sold categories on Mercari are Entertainment & Hobbies, accounting for 46% of all transactions ▪ The most popular items are character and idol merchandise and Pokémon cards, reflecting the fandom culture boom of recent years ▪ Mercari has become more than just a marketplace to sell unneeded items—it has evolved into a platform that supports users’ passion for their fandoms, offering ways for users to find hidden gems based on their hobbies and values 24
25. What Is Mercari Shops? Based on the concept of “sell with ease,” Mercari Shops is an e-commerce platform that allows users to establish their own online shop using just a smartphone and sell their products directly to consumers as a business. 25
26. Mercari Shops’ Strengths A B2C marketplace where anyone can sell with ease No monthly or entry fees Large user base of 24M monthly users Mercari Shops uses a simple system where the only cost to shops is a fee when an item sells (10% of the item price). With no fixed costs, it’s easy for anyone to get started. Open an online store on Mercari Shops to sell your items on Mercari and reach approximately 24M monthly users without any advertising costs! Mercari Shops now supports crossborder sales, too. Features tailored to businesses Distinct user demographics compared to other malls Besides listing items in just three steps, Mercari Shops offers many features not available to C2C Mercari accounts, including centralized inventory management through Next Engine, Cross Mall, and many other ASPs, batch CSV registration, and staff accounts. 1. From an internet survey by Appliv TOPICS (https;//mag.app-liv.jp/archive/142044) 2. From RAGTAG on Mercari Shops Magazine (https://shops.mercari.com/magazine/posts/50047) Large percentages of buyers are women and young demographics1, indicating user demographics distinct from other online malls2. 26
27. Expanding Our Crossborder Transactions Business Mercari’s crossborder transactions business began in 2019, and crossborder transactions1 now account for approximately 1 in 14 transactions on Mercari. Japanese character merchandise and fashion items are particularly popular with buyers overseas, and we are working to create a circular economy that includes users not only in Japan, but around the world. Crossborder GMV Grew by approx. 19x in the past 4 years (Billion JPY) 1. Crossborder transactions: Transactions between a seller in Japan and a buyer overseas (or a proxy buyer); includes purchases made through crossborder proxy services 27
28. Mercari Global App We launched the global Mercari app, which enables consumers overseas to browse and buy items listed on Mercari and Mercari Shops in Japan, to Taiwan and Hong Kong in September 2025 and the US in June 2026. We aim to expand this app to over 50 countries and regions by 2028. 28
29. M Department—A Reuse Service with All Items Professionally Authenticated In July 2026, we launched M Department, a service that carries refurbished items and authenticated brand-name items. Through this service, we aim to reduce buyers’ concerns over quality of high-priced secondhand items and pioneer a "third market" option that exists alongside markets for new and used items. 29
30. What Makes M Department Different Three Advantages of M Department All items are professionally authenticated Comprehensive warranty and return policies for peace of mind High-value items at discounted prices 30
31. Evolving Mercari’s Marketplace Business to a New Phase A marketplace app where anyone can buy and sell easily, safely, and enjoyably A reuse service with all items professionally authenticated For finding hidden gems like a treasure hunt For finding the item you want, exactly how you want it A marketplace where buyers can choose how they shop 31
32. Mercari’s Strengths: Safe & Secure (Basic Policy) In May 2025, Mercari announced a new policy for realizing a safe and secure marketplace. Under this policy, Mercari will take a more active role in addressing issues that are difficult for users to resolve on their own. We will not only take preventative measures against fraudulent usage but work to thoroughly eliminate fraudulent users. For those using our services properly, we will offer thorough aid, such as our full coverage support program with which Mercari provides support and full compensation in the rare event of a transaction dispute (launched in July 2025). 32
33. Mercari’s Strengths: Safe & Secure (Anti-Fraud Measures) Enabling biometric sign-in Preventing fraud by enhancing identity verification Mercari provides several identity authentication services, such as phone number authentication and 3D Secure 2.0 authentication, to create a safe and secure marketplace. In April 2023, Mercari added password-less biometric passkeys to enhance security and convenience through the use of FIDO authentication. In January 2024, Mercari added the passkey biometric feature to the sign-in process for all services. Users are required to provide user information (full name/date of birth) when registering for a new Mercari account. A user’s sales balance cannot be withdrawn if the name registered does not match the name of the bank account for the balance transfer; this prevents fraudulent listings, such as stolen goods. Identity verification is also required for all users who wish to buy or sell high-value items, ensuring that only verified users can participate in high-value transactions for a more secure marketplace. 33
34. Mercari’s Strengths: Safe & Secure (Anti-Fraud Measures) Leveraging AI to strengthen fraud monitoring With the diversification and increased sophistication of fraud techniques, we train AI to identify suspicious behaviors, assign fraud risk scores, and detect fraudulent users. We will strengthen actions against fraudulent users, pursuing accountability through account usage restrictions, criminal action, civil litigation, and other methods (claims for damages, claims for unjust enrichment, etc.). Detecting violations with AI Establishing the Mercari Appraisal Center Mercari employs AI technology to automatically detect transactions that violate our terms of use. By combining this technology with extensive transaction data and item information data, we aim to improve the accuracy of the detection systems and use them for a wider range of applications to provide an even safer and more secure environment for all users. To eliminate counterfeit items on Mercari, we established the Mercari Appraisal Center in September 2025 and developed in-house support for Mercari’s appraisal features. Additionally, starting March 2026, Safe Appraisal is automatically enabled for all items listed under eligible categories and brands. × 24/7 support 1. Item listed 2. Calculate violation score Listings violating terms of use → deleted Normal listings → unhidden 3. CS checks reported items Examples of items that violate terms of use: gaming accounts, counterfeit items, medicine, etc. 34
35. Mercari’s Strengths: Safe & Secure (User Support) New features for safe and secure transactions Returns, compensation, and full coverage program To ensure safe and secure transactions and ease of use, we have introduced an anonymous return feature, which removes the need for buyers and sellers to share their names and addresses when an item is returned, as well as a feature that enables sellers to receive their sales proceeds in as little as 24 hours without having to wait for the buyer to rate the transaction. These features help make returns stress-free and speed up the circulation of funds by listers, building a more seamless and sturdy marketplace foundation. If an item arrives damaged or defective, we offer returns and compensation. On July 1, 2025, we launched a full coverage support program. With this program, in the event of a transaction dispute that can’t be resolved through discussion alone, Mercari reviews the dispute and fully compensates both the buyer and seller if the transaction meets predefined conditions. 35
36. Mercari’s Strengths: Safe & Secure (Stakeholder Engagement) Cooperating with public institutions and law enforcement Mercari strives to provide a safe and secure service for all users by cooperating with public institutions and law enforcement. In July 2026, we concluded an agreement with the National Police Agency regarding the provision of information related to fraudulent transactions. The aim is to work towards making not just Mercari, but the industry as a whole safer and more secure by participating in organizations such as the Council for Intellectual Property Protection (CIPP), EC Business Association, Japan Cybercrime Control Center (JC3), and the National Shoplifting Prevention Organization (NSPO). Recalled Items Program Mercari’s Recalled Items Program aims to deliver information issued by manufacturers/importers about product recalls and similar product safety issues directly to Mercari users who own the products in question (users who have listed or bought the item on Mercari). We believe that identifying those who own affected products and ensuring they receive the safety information they need will increase the percentage of items successfully returned to the manufacturer, help prevent accidents, and contribute to manufacturer/importer product safety initiatives. Intellectual Property (IP) Protection Program Awareness activities for adolescents and educators Mercari responds to requests to delete items that infringe IP rights as stipulated by the Provider Liability Limitation Act, and this program simplifies and speeds up this process for rights holders. By entering the program, rights holders can cut down the time spent on submitting documents every time they file a claim. The time to complete their takedown request is also shortened. We hold educational activities across the country for middle school and high school students, as well as parents and teaching staff, where we teach them how to avoid trouble on marketplace apps, to ensure they can use Mercari with a sense of security. 36
37. Mercari’s Strengths: Safe & Secure (Principles) Mercari formulated a set of Marketplace Principles in January 2021. We regularly review our Marketplace Principles together with an advisory board composed of external experts, and revise them as necessary based on social changes and through dialogue with our users and the public. Free transactions are only possible in a safe environment. Marketplaces are built on trust between users. Each individual’s values and views must be respected. The marketplace must not encourage or promote inhumane behavior. Through these three principles, we aim to be a diverse and free marketplace in which anyone can participate without worry. 37
38. Mercari’s Strengths: Safe & Secure (Principles) Hygiene products during the COVID-19 pandemic (2021; currently lifted) Stockpiled rice (2025) We determined that these items fall into the category of “items that are essential to protecting people’s health and/or safety and should be widely distributed as quickly as possible but are in notably short supply.” Empty shell casings (2025) We determined that shell casings are likely to encourage illegal and criminal activities based on information we received from the National Police Agency regarding terrorist attack prevention. For this response, we received a letter of commendation from the National Police Agency. 38
39. Mercari’s Strengths: Safe & Secure (Principles) We may take action against items that have the potential to significantly impair the safety and security of our marketplace, such as items associated with a high number of fraudulent listings/incidents and items that have extreme fluctuations in price. These actions may include prohibiting listings of the item. Fraudulent Listings Slander and Libel Extreme Price Volatility Additionally, we regularly hold meetings of our Advisory Board on the Ideal Form of a Marketplace with external experts to review the content of the Marketplace Principles and revise them as necessary. 39
40. Mercari’s Strengths: Safe & Secure (Transparency Report) Mercari regularly publishes a Transparency Report on its plan of action for a safe and secure marketplace, aiming to ensure transparency in the process of carrying out various initiatives toward creating a safe and secure transaction environment for users. The report details the results of Mercari’s measures against fraud and support for users, as well as the progress and results of its new and enhanced initiatives for thorough elimination of fraudulent users and thorough aid for users started in May 2025. 40
41. Fintech 41
42. Circulate your value, anywhere and everywhere Building trust for a seamless society 42
43. Fintech’s Focus Areas Number of users (as of June 30, 2026) 21.09M Number of users (as of March 31, 2026) 4M Wallet Cryptoassets Payment Bitcoin payment Code payment/iD payment (within Mercari) Credit Stable point revenue Deferred payment service (lump-sum payment, installment payment, fixed-amount payment) Credit card/virtual card Small-sum loan service Loyalty program 43 43
44. Mercari Group’s “Circular Finance” The addition of Merpay (money and credit) and Mercoin (cryptoassets) to Mercari’s item lifecycle creates a circular relationship between users’ items, money, and credit, facilitating the growth of “circular finance” that grants users greater freedom and flexibility. It provides users with a valuable, uniquely Mercari experience. Aiming to achieve their dreams Listing Money Mercard Transaction History Goods Credit Information Payment Credit Cryptoassets Value Circulation Money 15 cryptocurrencies including Bitcoin, Ethereum, and XRP Money Sales 44
45. What Is Merpay? Merpay is a mobile payment service operated by Merpay, Inc., that can be used within the Mercari marketplace app. This service enables users to utilize their Mercari sales balance1, funds added to their Merpay balance from a bank account or ATM, or the BNPL (buy now, pay later) Merpay Credit service to pay for purchases at physical stores and online with their smartphone. Merpay supports both iD contactless payments2 and code payments and can be used at JCB merchants across Japan with Mercard, a credit card with a point-back rate that increases based on use of Mercari and Merpay. 1. In order to use Mercari sales balance, users must configure certain settings or use their sales balance to purchase Mercari points. 2. ”iD” is a registered trademark of NTT DOCOMO, INC. 45
46. Number of Merpay and Mercard Users Number of Merpay users 21.09M Number of verified users 20.47M Percentage of verified users 97.0% Number of Mercard credit cards issued 6.32M Note: Number of cards issued as of June 30, 2026 Note: As of June 30, 2026, the aggregated number of unique users (excludes users who have deleted their accounts) who had registered for Merpay Electronic Money, set up Virtual Card, were issued a Mercard, opened an account for exchanging cryptoassets, or used Merpay QR Code Payments, Online Payments, or Merpay Credit (lump-sum payment or fixed-amount payment), etc. 46 46
47. How Mercari Users Use Merpay Mercari Group’s services form a sustainable cycle in which users sell things they no longer need on Mercari and use the resulting sales proceeds to shop at physical and online stores (primary distribution) through Merpay. Receives item Buys new things using Mercari sales balance Receives sales proceeds/adds money to balance Sells things they no longer need on Mercari 47
48. Merpay Credit— A Credit Service Based on Trust • • • • Merpay Credit enables users to pay for purchases later, with the credit limit determined by their Mercari usage history. The service also allows users to set their own usage limit and check their usage history, so they can manage their payments themselves. Merpay Credit provides flexible deferred payment, installment payment, and fixed-amount payment options, allowing users to adjust their repayment amount at any time. Users can also use installment payment (two-installment payment) without incurring fees. Notes: Users 18 or 19 years of age have an upper usage limit of 100,000 yen. (Feature not available to users under the age of 18). Fixed-amount payment not available to high school students. 48
49. Pay Without Adding Funds to Your Account— Even With Insufficient Sales Balance 1. Seamless payment experience When paying with sales balance (Merpay balance) Continue shopping even with insufficient sales balance When using Mercard Pay in combination with sales balance and points 49
50. Helping Users Spend Within Their Means 2. Safe and secure usage limits Users set their own credit limit A message is sent to users who attempt to exceed their credit limit By setting their own limit, users can prevent overspending 50 50
51. Merpay’s Definition of "Trust" We measure “trust” based not on who people are, but on what they have done. We determine whether a user will uphold their promise to repay based on their unique transaction data from Mercari. In this way, we can build trust, creating a new form of credit for the user. Length of employment Income Occupation Address Family structure 51 51
52. Visualization of Usage Status and Flexible Payment Methods Visualizes usage status Enables flexible payments Displays the amount of time until repayment is complete, as well as the monthly payment amount and fees Allows users to create a payment schedule that reasonably fits with their lifestyle + Can use Mercari sales balance + Can pay whenever you want + Can adjust the payment amount after purchase 52
53. Mercard—Used and Managed in the Mercari App • • • In November 2022, we started providing Mercard, a credit card whose credit limit (up to 900,000 yen) is determined by the user’s Mercari usage history and which can be used and managed within the Mercari marketplace app. In addition to code payments and iD payment at supporting merchants, cardholders can also use their Mercard at 56 million1 JCB merchants both in Japan and overseas. Launched Mercard Gold in 2025 and Mercard with an ETC feature in 2026. Over 6.32M cards issued Mercard Gold ETC card feature Maximum usage limit of 3 million yen Up to 2% points back on everyday purchases Complete lineup of additional services 1. Number of JCB merchants as of March 31, 2025; Mercard provides a credit card shopping service 2. Number of cards issued as of June 30, 2026 53
54. Benefits of Mercard Verified users Complete Mercard application from the Mercari app in as little as one minute 20.47M The initial application takes as little as one minute for Mercari users who have already verified their identity. Users can be issued a card and start using it in as little as four days. With the added benefits of Merpay Visualize and manage Mercard usage right from the Mercari app Constant point-back rewards system Users receive 1% points back for purchases made at physical stores and when shopping online, and a maximum of 4% for purchases made on Mercari. Point-back rate increases are determined not just by a user’s purchase history on Mercari, but also by their listings and sales history on the platform. Flexibly choose the timing and method of payments A credit system that doesn’t rely on conventional attributes like age and occupation 54 54
55. Mercard Awarded 1st Place in Three Categories of the Oricon Customer Satisfaction® Survey Mercard was ranked no. 1 in three categories of the 2026 Oricon Customer Satisfaction® Survey for credit cards with no yearly membership fees: “Ease of applying for card,” “Ease of use of website or app,” and “Range of payment methods.” 55 55
56. Merpay Smart Money— Small-Sum Loan Based on Mercari Usage • • • In August 2021, we launched Merpay Smart Money, a small-sum loan service that Mercari users can apply for within the Mercari app and that utilizes Mercari usage history to determine a user’s interest rate and borrowing limit The service focuses on not only providing appropriate credit, but making that credit balance easy to repay, allowing users to repay using their Mercari points/sales balance and change their monthly repayment day, repayment amount, and other repayment plan details within the app Credit limits range from 5,000 yen to 800,000 yen based on the user’s Mercari usage history, with a yearly interest rate of between 3% and 15%. Interest Borrowing limit Maximum borrowing limit is 500,000 yen. Interest rate and borrowing limit are determined through a screening process based on the user’s Mercari usage history. Not available to users less than 20 years of age or over 70 years of age. 56
57. Mercoin Creating a marketplace where people can easily exchange value in all its forms Mercoin, Inc. was established on April 28, 2021, with the goal of planning and developing services related to cryptoassets and blockchain technologies. On June 17, 2022, Mercoin completed registration as a cryptocurrency exchange in accordance with the Payment Services Act. On March 9, 2023, we released a service enabling bitcoin transactions using the regular Mercari app, enabling users to convert items they no longer need into future assets. Mercari has also started work on blockchain technologies, which present new opportunities for individuals to exchange value. The company wants to redefine what it means to buy and sell, enabling anyone and everyone to easily exchange value in all its forms—not only as belongings and money, but services and digital content like non-fungible tokens (NFTs). (Cryptoasset-related services are provided by Mercoin, Inc.) 57
58. Cryptoasset Trading Now Available on Mercari Marketplace App In March 2023, we launched bitcoin trading on Mercari Three strengths of our easy-to-use-for-anyone platform • Apply on the Mercari app in as little as 30 seconds • All prices listed in JPY, with trades starting from 1 JPY • Service offers 15 cryptocurrencies including bitcoin, ethereum, and XRP (Cryptoasset-related services are provided by Mercoin, Inc.) 58
59. Cryptoasset Trading on the Mercari App → Sales balance/ points/ money added Cryptoassets (bitcoin, ethereum, and XRP) • Buy and sell at any time • Automatic bitcoin savings feature (can be set to daily, or 1, 2, or 4 times per month) • Bitcoin payment feature (Cryptoasset-related services are provided by Mercoin, Inc.) Earn points for holding cryptoassets Holding ethereum in your account will earn you points every month 59
60. Japan Reaches 14M Cryptoasset Accounts Since surpassing the 10M account milestone in April 2024, Japan has now reached 14M accounts. Accounts 14.03M 15M Cryptoassets +2.16M YoY 12.13M Start of cryptoasset trading on Mercari 10M 5.73M (Cum.: 13.78M accounts) 9.52M NISA +2.67M YoY 6.62M (Cum.: 28.26M accounts) 5M As of Feb, 2022 As of Feb, 2023 Ref: As of December 31, 2025 As of Feb, 2024 As of Feb, 2025 As of Feb, 2026 Note: According to the latest monthly cryptoasset transaction data from the Japan Virtual and Crypto Assets Exchange Association (JVCEA) NISA accounts: From materials disclosed by the Financial Services Agency 60
61. Cryptoasset Trading Service Users on Mercari Reached 4M users three years after service launched Notes: As of March 31, 2026, the total number of accounts opened since Mercoin launched its cryptoasset trading service (Cryptoasset-related services are provided by Mercoin, Inc.) 61
62. Expanding Crypto’s Reach Mercoin is chosen by users who have had no prior connections to cryptoassets Cryptoasset Trading Experience User Demographics 18–20s 50s or older 85% 26.4% 25.3% Broad of account holders had no prior experience trading cryptoassets age ranges 40s 24.3% 30s 24.0% Notes: Data on users of Mercari’s bitcoin trading service (as of March 31, 2026). (Cryptoasset-related services are provided by Mercoin, Inc.) The numbers in the graph are rounded to the nearest tenths place, and as such, may not total 100%. 62
63. Lowering the Barrier to Entry Creating an easy way to start trading Reasons for not holding cryptoassets Responses from 1,227 people who do not hold cryptoassets Note: Respondents were able to select multiple answers 1 It seems like a way to lose money 2 I find it to be intimidating 3 I don’t have the money to buy in 36.9% 30.5% 26.6% Source: Mercoin survey on cryptoassets (February 2023) (Cryptoasset-related services are provided by Mercoin, Inc.) 63
64. Bitcoin Payment on Mercari In February 2024, we started offering a service that allows users to use bitcoin to make purchases on Mercari. One month after the full release of the service, over 100,000 payments were made using bitcoin. Select “Use Bitcoin” Choose an item on Mercari and go to check out (Cryptoasset-related services are provided by Mercoin, Inc.) Choose how much to use Confirm purchase details Purchase the item
65. Start Easily and Safely, Right on Mercari Creating more users who hold cryptoassets Apply on the Mercari app in as little as 30 seconds* Convert sales balance (Merpay balance) to cryptoassets Start trading from as little as 1 yen *For verified users, applications can be completed in as little as 30 seconds, allowing users to start trading cryptoassets right away Expanding use Sell cryptoassets and transfer proceeds to Merpay balance to use when shopping 65
66. Cryptoasset trading service on Mercari Launched feature for trading Coincheck-listed cryptocurrencies Added 12 new cryptocurrencies including Shibainu and Dogecoin 66
67. 12 New Coincheck Cryptocurrencies— More Fun in Choosing Added 12 currencies (Cryptoasset-related services are provided by Mercoin, Inc.) 67
68. Trade Your Favorite Cryptocurrency, Right From Mercari (Cryptoasset-related services are provided by Mercoin, Inc.) 68
69. メルカリNFTのKV as an investment 69 69
70. Mercari NFT Buy Collect List NFTs can be bought using your usual payment method on the Mercari app, such as your Merpay balance or Mercard. Users can view a list of the NFTs they own on the “My items & listings” screen. Just as when you buy and sell on Mercari, revenue from selling NFTs will be immediately reflected in your sales balance. 70
71. Mercari US 71
72. Mercari US • Service launch: September 2014 • Operating systems: Android, iOS (Can also be accessed through web browsers) • Usage fees: None • Revenue structure: After the transaction is complete, the seller is charged a selling fee (10% of the total of the listing price and the shipping fee paid by the buyer), and the buyer is charged a buyer protection fee (3.6% of the listing price and the shipping fee) Mercari’s mission is to “create value in a global marketplace where anyone can buy & sell,” and the year after our founding, we began to expand overseas. We started our business in the US in April 2014, and we adapted our branding, improved our UI/UX, and created a delivery network to match local preferences and the characteristics of the US market. We recognize that succeeding in the US, with its enormous and diverse population, is an important milestone to achieving our mission, so that is where we are devoting our energy. 72
73. Looking Back on the US Business Diversification of shipping methods FY2014.6 FY2016.6 Launch of crossborder transactions with Mercari in Japan Launched Mercari Local, a contactless same-day pickup and delivery service, nationwide in partnership with Uber Jan 2014 Launched Mercari, Inc. (US) Opened San Francisco office Localization of management structure FY2017.6 FY2018.6 Introduction of fees Rebranding Launched a model in which sellers pay 10% of transaction amounts as a selling fee Carried out rebranding and an app redesign as a step toward localization FY2021.6 Launch of deferred payment service FY2024.6 FY2025.6 Rebrand to a design aimed at Gen Z Launched deferred payment (BNPL) service with Zip (later launched BNPL service with PayPal in 2022) Service launch 73
74. Positioning We aim to be "the easiest and safest selling app" by providing a variety of delivery options in addition to continuing to pursue ease of use toward establishing a unique position in the US market. Cross-category Enhanced local shipping, including meet-up options Existing shipping options Local pickup only Ship only Category-specific 74
75. 決算資料差し替え済み 1 US—Results (IFRS / Full Year) GMV2/MAU3 Core Operating Profit4 Revenue (Billion JPY) GMV (Million USD) MAU (Million users) (Billion JPY) +4% YoY +12% YoY +107% YoY +11% YoY 1. Adopted IFRS in FY2024.6 and disclosed IFRS numbers for FY2023.6 as well to enable YoY comparisons 2. Aggregate transaction value after adjusting for cancellations 3. Quarterly average number of users who browsed our service (app or web) at least once during a given month; graph compares the averages for Q4 of each fiscal year 4. Core operating profit is defined as IFRS operating profit excluding other income/expenses, etc. 75
76. 決算資料差し替え済み FY2027.6—US Business Objectives On July 1, 2026, former Mercari, Inc. (US) Vice President of Growth Jeff LeBeau was appointed as Chief Executive Officer of Mercari, Inc. (US). The new CEO will take charge of everyday business management and decision-making, while the previous CEO Shintaro Yamada will focus on establishing the mid- to long-term strategy for the US business’s disruptive growth as Mercari Group CEO. Continuously Improving the Product’s Core Experience ▪ Continue to improve UI/UX and enhance fraud prevention measures, aiming for a product that is incredibly easy to use • Promotion of purchases ◦ Enhancing the bundle purchase feature ◦ Expanding item return services ◦ Expanding shipping insurance • UI/UX improvements ◦ Enhancing personalization • Trust and safety ◦ Enhancing identity verification and expanding fraud prevention measures Driving Bigger Baskets ▪ Aim to drive bigger baskets through initiatives such as enhancing the bundle purchase feature, while keeping low-price-range items at our core ▪ Activate transactions across categories, rather than in specific categories such as Fashion and Entertainment & Hobbies 76
77. Appendix 77
78. Leadership (Executive Officer) After graduating from Waseda University, Shintaro Yamada established Unoh Inc., where he launched various internet services including "Movie Life," "Photozou," and "Machitsuku!". In 2010, he sold Unoh to Zynga. After leaving Zynga in 2012, he went on a trip around the world. In February 2013, he established Mercari, Inc. He also established the YAMADA Shintaro D&I Foundation in July 2021. Shintaro Yamada Director, Representative Executive Officer and CEO Profile Aug 2001 Feb 2005 Unoh Ltd Representative Director Unoh Ltd renamed to Unoh Inc. Sep 2010 Zynga Japan K.K. General Manager (due to acquisition) Feb 2013 Kouzoh, Inc. (currently Mercari, Inc.) Founder and CEO Mar 2014 Mercari, Inc. Director (current position) Sep 2015 Souzoh, Inc. (old) Director Nov 2015 Mercari Europe Ltd Director Apr 2016 Merpay Ltd Director Apr 2017 CEO Sep 2019 Representative Director, President, Chief Executive Officer Sep 2023 Director, Representative Executive Officer and CEO (current position) Jan 2025 Mercari, Inc. (US) CEO (Note: Jeff LeBeau assumed the role of Mercari, Inc. (US) CEO as of July 1, 2026) 78
79. Leadership After graduating from Waseda University, Fumiaki Koizumi joined Daiwa Securities SMBC, where he managed the IPOs of tech companies including mixi, Inc. and DeNA Co., Ltd. In 2006, he joined mixi, Inc. as Director, Executive Officer, and CFO, and supervised the Corporate Division. After leaving mixi in 2012, Koizumi supported a number of startup companies. In December 2013, he joined Mercari, Inc., where he assumed the role of Director in March 2014. He was appointed as President & COO in April 2017, and as Director, President in September 2019. He also assumed the role of CEO of Kashima Antlers F.C. Co., Ltd. in August 2019. Profile Apr 2003 Fumiaki Koizumi Director, President / President of Kashima Antlers F.C. Co., Ltd. Dec 2006 Jun 2008 Jun 2012 Jul 2012 Dec 2013 Dec 2013 Mar 2014 Sep 2015 Apr 2017 Aug 2019 Sep 2019 Mar 2022 Joined Daiwa Securities SMBC Co. Ltd. (currently Daiwa Securities Capital Markets Co. Ltd.) Joined mixi, Inc. mixi, Inc. Director FreakOut, Inc. Outside Corporate Auditor RAKSUL INC. Outside Corporate Auditor trippiece Outside Director Joined Mercari, Inc. Mercari Director, Corporate Division Souzoh, Inc. Director Mercari COO; Director, Corporate Division Chief Executive Officer of Kashima Antlers F.C. Co., Ltd. (current position) Director, Chairperson (current position) Director of Japan Professional Football League (J.League) (part-time) 79
80. Leadership (Executive Officer) Masato completed his master’s in the Graduate School of Interdisciplinary Information Studies at the University of Tokyo in 2004. After working at NTT Docomo, he began working as the Head of Partner Sales in the Enterprise Division at Google Japan in 2008. In 2014, he became the Head of Business Development and Sales at Square Japan, and in 2016, he became the Head of Apple Pay Merchant Business at Apple Japan. He joined Merpay as Chief Business Officer in April 2018, where he oversaw general business operations, such as credit design and merchant development. He was appointed Representative Director, Chief Executive Officer of Merpay in January 2022; Vice President, Chief Executive Officer (Fintech) in July 2022; and Mercari Vice President, Chief Executive Officer (Marketplace) in November 2023. In January 2024, he assumed the positions of Mercari Executive Officer, Senior Vice President of Japan Region and Chief Executive Officer (Marketplace). He was appointed Executive Officer, Senior Vice President of Japan Region in March, 2025. In July 2025, he became Executive Officer, Senior Vice President of Japan Business.. Masato Yamamoto Executive Officer, Senior Vice President of Japan Business Profile Apr 2004 Nov 2008 Jul 2014 Jan 2016 Apr 2018 Jan 2021 Jan 2022 Jul 2022 Nov 2023 Jan 2024 Mar 2025 Joined NTT Docomo Inc. Joined Google Japan Inc. as Head of Partner Sales Joined Square K. K. as Head of Business Development and Sales Joined Apple Japan, Inc. as Head of Apple Pay Merchant Business Joined Merpay, Inc. Appointed Director of Merpay, Inc. (current position) Appointed Representative Director, Chief Executive Officer of Merpay, Inc. Appointed Vice President, Chief Executive Officer (Fintech) / Director of Mercoin, Inc. Appointed Vice President, Chief Executive Officer (Marketplace) Appointed Executive Officer, Senior Vice President of Japan Region and Chief Executive Officer (Marketplace) Appointed Executive Officer, Senior Vice President of Japan Business (current position) (Note: Title changed from Senior Vice President of Japan Business as of July 2025) 80
81. Leadership (Executive Officer) Sayaka completed her pre-doctoral course (master’s degree) at the Graduate School of Science and Engineering from Keio University Graduate School. In April 2006, she joined Goldman Sachs Japan Co., Ltd. After joining the company, she was engaged in investment/loan projects that utilize their own funds, etc., and was appointed as a Managing Director at the same company in 2017 based on her extensive financial knowledge outside of corporate finance. Outside of her work, she also serves as the Co-Chair of the Japan Women’s Network and leads the promotion of D&I. Sayaka joined Mercari, Inc. as CFO in January 2021. In January 2023, she assumed the position of Senior Vice President of Corporate and CFO. She has been in her current position of Director, Executive Officer, Senior Vice President of Corporate, CFO since September 2023. Sayaka Eda Director, Executive Officer, Senior Vice President of Corporate, and Chief Financial Officer Profile Apr 2006 Nov 2017 Joined Goldman Sachs Japan Co., Ltd. Appointed Managing Director at Goldman Sachs Japan Co., Ltd. Jan 2021 Joined Mercari Group as Chief Financial Officer/CFO of Merpay, Inc. July 2022 Appointed Vice President of Corporate and Chief Financial Officer of Merpay, Inc. Jan 2023 Appointed Senior Vice President of Corporate and Chief Financial Officer Sep 2023 Director, Executive Officer, Senior Vice President of Corporate, and Chief Financial Officer (current position) 81
82. Leadership (Executive Officer) After working in a joint investment fund between Livedoor's investment bank division, Goldman Sachs Securities, and SBI Holdings, Shuji Kawano joined Industrial Growth Platform, Inc. (IGPI), a strategy consulting company. After that, he started his own business. He was also head of Gunosy’s Management Strategy Office when the company listed. He joined Mercari in July 2018. In October 2019, he was appointed Vice President of Strategy, and became Senior Vice President of Strategy in September 2020. He assumed the role of Senior Vice President of Management Strategy in November 2021, and was appointed to his current role of Executive Officer, Senior Vice President of Management Strategy in September 2023. Profile Shuji Kawano Executive Officer, Senior Vice President of Management Strategy May 2005 Nov 2007 Dec 2008 Oct 2014 July 2018 Oct 2019 Sep 2020 Nov 2021 Sep 2023 Joined livedoor Co., Ltd. Joined SBI Capital Co., Ltd. Joined Industrial Growth Platform, Inc. (IGPI) Joined Gunosy Inc. Joined Mercari, Inc. as Vice President and CEO Office Head Appointed Vice President of Strategy Appointed Senior Vice President of Strategy Appointed Senior Vice President of Management Strategy Executive Officer, Senior Vice President of Management Strategy (current position) 82
83. Mercari as a Work Environment Mercari has various systems in place to create an environment where all employees can feel free to take on Go Bold challenges. Our benefits system, Merci Box, was introduced in February 2016 in order to provide an environment where members can Go Bold to the fullest and give 100% both inside and outside of the office. We also provide a monetary gift to employees who return from childbirth/childcare leave, financial support for fertility treatment, financial support for non-certified daycare, and financial support for children who are ill, as well as life insurance for all employees. In May 2021, we also introduced two related financial support programs on a trial basis: one is financial support for egg freezing, and the other is financial support for early childcare. Extended support for Paid childcare and childbirth, childcare, caregiving leaves and nursing care leave Support for fertility treatments Financial support for daycare for sick children Financial support for non-certified daycare Support in times of need 83
84. ESG—Materiality Update • MISSON Mercari defines our materiality as important topics that relate to creating value to contribute to resolving social and environmental issues through our business, and creating the management foundation necessary for continuous growth. In FY2023.6, we updated our materiality. Circulate all forms of value to unleash the potential in all people Social Impact Business Value Created Through Our Products and Services (1) Empowerment of Individuals and Society By creating opportunities for anyone to realize their dreams and contribute to society and the people around them, we will achieve a world that unleashes the potential in all people. (2) Creating a World That Circulates All Forms of Value We strive to be a planet-positive company that contributes to solving environmental issues through its business activities by realizing a society in which all forms of value—not just physical goods and money—circulate seamlessly. (3) Creating a New User Experience Through Technology We utilize data, AI, and other innovative technologies to constantly evolve our products and create new user experiences through the seamless exchange of value. (4) Building Long-Term Public Trust Organizational tional and and Management Foundations Supporting the Creation of Value We fulfill our responsibilities as a public entity and build public trust by establishing a robust and highly transparent decision-making process, and through more effective corporate governance and thorough compliance. We contribute to the realization of healthy internet services around the world by achieving a safe, secure, and fair transaction environment, and also by educating and sharing information throughout the industry. (5) Unleashing the Potential in Diverse Talent Worldwide We will aim to be a company that can continue to grow sustainably by creating an environment in which people from diverse backgrounds all around the world can reach their full potential. 84
85. Inclusion & Diversity (I&D) Since 2018, Mercari has continued to promote inclusion and diversity (I&D) as an essential element of achieving our mission, aiming to create globally competitive teams that value individual diverse experiences and perspectives. In January 2021, we established the I&D Council, a cross-organization internal committee with CEO Shintaro Yamada as chairperson. In these ways, we work to promote I&D both inside and outside of Mercari Group. Unconscious Bias Workshop The Unconscious Bias Workshop is mandatory for managers at Mercari. It is designed to help participants understand unconscious bias (unconscious prejudice) and develop a habit of recognizing unconscious bias in daily life, with the ultimate goal of promoting IDI. (Materials available for free online) Build@Mercari We run Build@Mercari, a software engineer training program to support tech industry minorities such as women, the LGBT+ community, or other people who feel that they are part of an underrepresented group. Partnerships with educational institutions We entered into a school education partnership with Kamiyama Marugoto Technical High School (tentative name), a private technical high school preparing to open in April 2023, to promote I&D. Through this partnership, we will incorporate Mercari’s D&I expertise into school education. 85
86. Inclusion & Diversity (I&D) 86
87. R&D Organization ◼ R&D Organization R4D R4D was established by Mercari, Inc. in December 2017 as a research and development organization that aims to implement its findings practically, as part of the world at large. Propelled by Mercari Group’s mission to “circulate all forms of value to unleash the potential in all people,” R4D works on research and development focused on creating innovation. R4D stands for Research and 4 D’s: Development, Design, Deployment, and Disruption. Our goal is to create new value through research and development designed to be deployed in our future society while introducing disruptive ideas and technologies. Research for Design Development Deployment Disruption ◼ Mercari R4D Lab—Mercari’s research and development network R4D Lab is a research and development network that consists of collaboration across industry, academia, and government. This cooperation transcending sectors and occupations to solve social issues (co-innovation) is indispensable to creating the world we envision. By working together, from identifying issues to implementing solutions and conducting research across fields toward a common goal, we aim to create a world in which all forms of value are circulated to unleash the potential in all people. 87
88. Sports Business On July 30, 2019, Mercari announced it took control of Kashima Antlers. Promoting DMO1 (community development) by leveraging tourism resources • Powerful recognition and reputation • J.League’s top-level management and business development • Promotion of digitization • Strong bond with Kashima Antlers as its hometown • Tourism development leveraging rich resources Strengthening business base through technology and business management know-how • Marketing and business development • Top-notch technology in the industry • Management supporting rapid growth Energizing local economy by leveraging technology 1. DMO, Destination Management Organization, takes full advantage of local resources and promotes ”profitable” tourism community development with an aim to effectively and efficiently attract customers (as stated in a document prepared by the Japan Tourism Agency) 88
89. Initiatives in Partnership with Kashima Antlers • • • We are continuing our commitment to the Antlers’ hometown, the Rokko region of Ibaraki, with actions such as giving Kashima Stadium the new official nickname “Mercari Stadium” in June 2025 In the 2025 Meiji Yasuda J1 League, Kashima Antlers achieved their 9th league championship and 21st title Going forward, we will aim to create further synergy by leveraging in-person touchpoints with stadium crowds to enhance emotional connections through the energy at live games, as well as Mercari Group’s brand power, while continuing to focus on strengthening the club 89
90. History 2013 Feb Founded Kouzoh, Inc. with a capital of 20M yen Jul Funding: Acquired 50M yen from East Ventures Launched the Mercari marketplace app Aug Funding: Acquired 300M yen from UNITED Nov Renamed company Mercari, Inc. 2014 Jan Mar Apr Sep Oct Nov New company: Founded US subsidiary Mercari, Inc. Funding: Acquired 1.45B yen from Global Brain and others New office: Opened the Sendai customer service center Fully launched the Mercari US app Mercari (JP) began to charge sales fees (free→10%) Funding: Acquired 2.36B yen from WiL and others New company: Founded UK subsidiary Mercari Europe Ltd 2016 Feb New initiative: Introduced the benefits system Merci Box Mar Funding: Acquired 8.4B yen from Mitsui & Co. and others Released the community classifieds app Mercari Atte Apr New company: Founded UK subsidiary Merpay Ltd Oct Mercari (US) began to charge sales fees (free→10%) 2017 Feb Mar May Jul Aug Nov 2015 Dec New company: Zawatt Inc. became a wholly owned subsidiary New office: Opened the Fukuoka customer support center Released the Mercari UK app Launched marketplace app for books, CDs, and DVDs Mercari Kauru Released live video streaming feature Mercari Channel Launched marketplace app exclusively for brand name items Mercari Maisonz Released immediate purchase service Mercari NOW New company: Founded Merpay, Inc. New organization: Established R4D, a research and development team with the goal of social implementation Mar Relocated the head office (Roppongi Hills) Apr Started the RakuRaku Mercari Shipping delivery service Sep New company: Founded Souzoh, Inc. to manage new businesses within Mercari Group 90
91. History 2018 Feb Launched bike share service Merchari in Fukuoka Mar Rebranded the Mercari US app Closed Mercari Atte Apr Launched skill sharing service teacha May Received new listing approval Jun Listed on the Mothers Section of the Tokyo Stock Exchange Jul Closed Mercari Maisonz, Mercari NOW, and teacha Oct Rebranded Mercari, Inc. Dec Dissolved UK subsidiaries Closed Mercari Kauru 2020 Jan Feb Jun Jul 2021 Jan 2019 Jan Feb Mar Jul Aug Dec Closed the Mercari UK app Began requiring identity verification when signing up Launched the mobile payment service Merpay LINE Pay and Merpay formed a strategic business partnership Dissolved Souzoh, Inc. /Merchari succeeded to neuet, Inc. Closed Mercari Channel Kashima Antlers F.C. Co., Ltd. became an owned subsidiary Started cross-border sales to over 100 countries and regions Merpay entered a basic agreement to acquire all shares of Origami Inc. Mercari, Merpay, and NTT DOCOMO formed a business partnership Began the pre-opening of Mercari Station, Mercari’s first physical shop, in Shinjuku Marui Main Building Established Experts Committee on the Ideal Form of a Marketplace Apr Jul Aug Sep Oct Dec Announced our Marketplace Principles Established Souzoh, Inc. Established Mercoin, Inc. Launched Mercari Shops on a trial basis Launched a small-sum loan service Merpay Smart Money Mercoin acquired all shares of Basset Inc. Introduced a new work style policy called “Mercari’s New Normal Work Style ‘Your Choice’” Established Merlogi, Inc. Launched full rollout of Mercari Shops Joined forces with the six Pacific League baseball teams and Pacific League Marketing on “Pacific League Exciting Moments β” Collection NFTs 91
92. History 2022 Jan Shifted to new management execution structure for Mercari Group and changed responsibilities for members of leadership Jun Changed listing on the Tokyo Stock Exchange from the Growth Market segment to the Prime Market segment Established Mercari Software Technologies India Private Limited in Bengaluru, Republic of India Sep Opened the new office, Mercari Base Tokyo Conducted a large-scale update to the app Oct Completed series A round investing in Beebs Nov Launched the Mercard credit card 2023 Jan Feb Mar May Jul Sep Absorbed Merlogi, Inc. Unveiled a new Group mission on Mercari, Inc.’s 10th anniversary Started offering a service for trading bitcoin Established a team dedicated to generative AI/LLM Celebrated the Mercari marketplace app’s 10th anniversary Established our Basic Human Rights policy Announced transition to a Company with Three Committees and changes to executive structure Oct Launched Mercari AI Assistant feature leveraging generative AI/LLM technology 2024 Jan Mar Apr Aug Celebrated Mercari, Inc. (US)’s 10th anniversary Launched on-demand work service Mercari Hallo Absorbed Souzoh, Inc. Launched the crossborder service Mercari × Japan on Mercari, Inc. (US) Expanded to Taiwan with crossborder transactions 2025 Jan Feb Mar May Jul Aug Sep Oct Dec Launched Mercari NFT Launched full rollout of Mercari Ads, a business for advertising within the Mercari marketplace app Launched the MVNO mobile service Mercari Mobile Launched the Mercard Gold credit card Launched crossborder transactions to Hong Kong Signed a naming rights agreement for Ibaraki Prefecture's Kashima Soccer Stadium, changing the name to “Mercari Stadium” Entered into partnership agreement with Coincheck, Inc. Published first Transparency Report on our plan of action for a safe and secure marketplace Released new strategy for crossborder transactions Updated Marketplace Principles Launched a new service enabling users to withdraw their Mercari sales balance quickly and with no fees Kashima Antlers crowned the champions of the 2025 Meiji Yasuda J1 League Discontinued Mercari Hallo Entered into a capital and business alliance with Suruga-ya Began offering chat support 92
93. History 2026 Mar Released the anonymous returns feature Apr Released the early payout feature Jun Launched the Mercari Global App in the United States Launched a feature that allows users to trade cryptoassets available on Coincheck through Mercari’s cryptoasset trading service Jul Launched M Department, a reuse service with all items professionally authenticated 93