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Mercari, Inc.

April 28, 2022

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  1. As of April 2022

  2. Index P3: Company Overview P4: About P5: Leadership P6: Mission

    P7: The Circular Economy Merc a ri Strives For P8: Values P9: Culture P10–11: By the Numbers P12–33: Businesses (Merc a ri) P34–43: Businesses (Merp a y) P42–52: Businesses (Merc a ri US) P53: Souzoh P54: Mercoin Appendix P57–63: Leadership Profiles P64: Working Environment P65: ESG Policy (Materiality) P67: Diversity & Inclusion P68: Using Technology to Change How We Exchange Value P69: Merc a ri R4D (R&D) P70: Sports Business P70–74: History 2
  3. Company Overview Merc a ri Group is made up of

    Merc a ri, Inc., and its consolidated subsidiaries. 3 Established Activities Representative Locations Merc a ri, Inc. Established Activities Locations Offices Representative Representative of Merc a ri JP February 1, 2013 Planning, development, and operation of the Merc a ri marketplace app Roppongi Hills Mori Tower, 6-10-1 Roppongi, Minato-ku, Tokyo 106-6118, Japan Tokyo, Sendai, Fukuoka Shintaro Yamada Jeff LeBeau January 2014 Planning, development, and operation of the US version of Merc a ri John Lagerling Palo Alto, CA Merc a ri, Inc. 
 ʢUSʣ October 1, 1991 Management of a soccer club Fumiaki Koizumi Higashiyama 2887, Aō, Kashima, Ibaraki, Japan Kashima Antlers F.C. Co., Ltd. January 28, 2021 Planning, development, and management of internet services Yuki Ishikawa Souzoh, Inc. November 20, 2017 Financial-related businesses Masato Yamamoto Merp a y, Inc. April 28, 2021 Cryptoasset- and blockchain-related services Naoki Aoyagi Mercoin, Inc. Merlogi, Inc. October 28, 2021 Planning, development, and management of logistics services Tomoyuki Shindo Japan Region
  4. About February 1st, 2013 Established Tokyo, Sendai, Fukuoka, Osaka, Palo

    Alto Offices 2,044 
 (including subsidiaries) Headcount 4
  5. Leadershipɹ 5 Shintaro Yamada Representative Director, President, Chief Executive Officer

    / Director of Souzoh, Inc. Fumiaki Koizumi Director, President / President of Kashima Antlers F.C. Co., Ltd. John Lagerling Senior Vice President of Global Strategy / Chief Executive Officer of Merc a ri, Inc. (US) Naoki Aoyagi Senior Vice President of Japan Region / Chief Executive Officer of Mercoin, Inc. Hirohisa Tamonoki Senior Vice President of Global Expansion Jun Yokota Senior Vice President of Corporate / Auditor of Kashima Antlers F.C. Co., Ltd. / Auditor of Souzoh, Inc. / Auditor of Merlogi, Inc. Shuji Kawano Senior Vice President of Management Strategy Sayaka Eda Vice President, Chief Financial Officer / Director of Merp a y, Inc. Keisuke Sogawa Vice President, Chief Information Security Officer / Chief Information Security Officer of Merp a y, Inc. / Chief Information Security Officer of Mercoin, Inc. Shinji Tanaka Vice President of US Backend (Merc a ri US) Takashi Kudo Vice President of Customer Service (Merc a ri JP) Tatsuo Kinoshita Vice President, Chief Human Resources Officer Jeff LeBeau Vice President, Chief Executive Officer (Merc a ri JP) / Director of Merlogi, Inc. Ken Wakasa Vice President, Chief Technology Officer (Merc a ri JP) Noriaki Yoshikawa Vice President of Public Policy Brad Ellis Vice President of Engineering (Merc a ri US) Shunsuke Sako Vice President of Business Growth (OMO) / Director of Merlogi, Inc. Kazushi Osari Chief Operating Officer (Merc a ri JP) / Director of Merp a y, Inc. / Director of Mercoin, Inc. Ken Takayama Outside Director (Independent Director) Makiko Shinoda Outside Director (Independent Director) Norio Murakami Outside Director (Independent Director) Mayumi Tochinoki Full-Time Auditor Fumiyuki Fukushima Outside Full-Time Auditor Daiken Tsunoda Outside Auditor
  6. Create value in a global marketplace where anyone can buy

    & sell "I want to make society more affluent by ensuring that limited resources are circulated." This is what founder Shintaro Yamada realized while traveling the world, and what led him to create the C2C marketplace known as Merc a ri. Thanks to technology, individuals around the world can now easily connect to buy and sell from each other. Through Merc a ri, we aim to establish a society where resources are circulated and where people can accomplish their goals without limitations. Mission 6
  7. Mission 7 Data Money Leading the move to a circular

    economy by integrating primary & secondary distribution Primary Distribution Secondary Distribution Increasing transactions on secondhand platforms Supporting production and marketing by providing credit and data
  8. Values With the whole team working together and all members

    working to their highest potential, the team can achieve large missions that one person alone cannot. In order to create innovation with a big impact on the world, everyone takes on bold challenges and learns from many failures. All members take ownership of their work as professionals in their field, learn every day, and commit to showing results. Go Bold All for One Be 8 a Pro
  9. Culture Go Go Bold Trust & Openness Mutual trust is

    very important for Merc a ri. Based on the premise of trust, information is kept transparent, and the organization is built flat. We also don’t make more rules than necessary, so as to not limit our members. This is because we believe that everyone’s untied thoughts and actions lead to both personal growth and a stronger organization. We call this culture Trust & Openness, seeking our ideal organization and people who share Merc a ri’s spirit. 9
  10. By the Numbers (Consolidated) Source: Internal documents, from FY2021.6 Presentation

    Material 35.7 51.6 FY2021.6 Full-Year Net Sales 106.1B JPY (Billion JPY) FY 
 2018.6 FY 
 2019.6 76.2 106.1 FY 
 2020.6 FY 
 2021.6 FY2022.6 Q1 Net Sales 38.5B JPY FY2022.6 Q1 Operating Income ˛2.9B JPY 10
  11. YoY +12% YoY +9% (Billion JPY) (Million users) (Billion JPY)

    (Million users) Merc a ri JP—GMV/MAU 11 1. Does not include the GMV of Merc a ri Shops. 2. Quarterly average number of users who browsed our service (app or web) at least once during a given month. GMV/MAU
  12. Businesses

  13. What Is Merc a ri? • 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 • Total number of listings to date: More than 2.5 billion 
 *As of December 2021 Many sellers enjoy having the items they no longer need purchased and used by buyers who need them, and buyers enjoy the feeling of hunting for treasure as they search through unique and diverse items for lucky finds. In addition to buying and selling, users actively communicate through the buyer/seller chat and the “Like” feature. The Merc a ri app is a C2C marketplace where individuals can easily sell used items. We want to provide both buyers and sellers with a service where they can enjoy safe and secure transactions. Merc a ri offers a unique customer experience, with a transaction environment that uses an escrow system, where Merc a ri temporarily holds payments, and simple and affordable shipping options. 13
  14. Merc a ri’s Strengths Merc a ri provides our many

    users with an easy-to-use, fun & engaging, and safe & secure marketplace. Safe & Secure Fun & Engaging For All Easy-to-Use 14
  15. Merc a ri’s Strengths: Easy-to-Use 15 Escrow payment Merc a

    ri Shipping AI Listing Barcode Listing Merc a ri acts as a go-between 
 in transactions to prevent disputes - Flat-rate shipping across 
 the country - No need to write addresses - Anonymous shipping - Automatic data entry - Price suggestions Seller Buyer Listing Payment notification Buyer rating Balance Payment Seller rating Delivery
  16. Merc a ri’s Strengths: Easy-to-Use 16 Simplified Listing We simplify

    listing by providing features like AI Listing and Barcode Listing, which use machine learning, and Easy Listing Integration, which imports items bought using Merp a y Online Payments into users’ inventory lists on Merc a ri *Barcode listing is available for books, music, games, cosmetics/perfumes, and consumer electrical appliances (iOS only) Add items you buy online to your inventory list! Easy Listing Integration
  17. Merc a ri’s Strengths: Easy-to-Use 17 Merc a ri Post

    Ship items you’ve sold on Merc a ri easily from this unstaffed mailbox. We plan to place Merc a ri Posts in 5,000 locations across the country by 2023 to expand shipping location options for our users. Yu-Packet+ Ship items by simply dropping the package off in a mailbox. We strive to offer options that allow our users to ship items whenever and wherever they’d like, providing a safe, secure, and convenient experience. Contactless drop-off delivery Have your package dropped off at a location of your choice, so you can receive your items without coming into contact with a delivery worker. Items can be dropped off in a delivery locker, in front of your door, next to a gas meter, etc. Pick & Pack TanoMer Shipping 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, as well as safe and secure anonymous shipping.
  18. Merc a ri’s Strengths: Fun & Engaging for All Buying

    is like a treasure hunt Merc a ri is not limited to apparel; the marketplace also carries items ranging from entertainment goods to home appliances to cosmetics. Because numerous sellers list their unique, individual items, it’s possible to come across lucky bargains that can’t be found on other services. Merc a ri also combines the stockpiled transaction data with AI technology to recommend items that match a user’s tastes, and to make it easier to find the items they’re looking for. Even though Merc a ri is an e- commerce platform, because the experience of buying feels like a treasure hunt, users spend as much time on the app as they do on social media. A diverse lineup of items from all categories Source: Internal documents - percentages of FY2021.6 Q3 GMV for Merc a ri’s Japan business 18 Sports/Leisure 8% Electronics 10% Women’s clothing 18% Entertainment 26% Men’s clothing 15% Cosmetics/Beauty 6% Other 10% 4% Interior goods Babies/Kids 3% 4%
  19. Influencing Everyday Life: Changes in Attitude Towards Consumption and Shopping

    19 Source: “Consumption Behavior Among Users and Non-Users of Marketplace Apps in 2020” Consumer Survey (August 2020) Users have shown an increased interest in saving money, looking for items that are likely to sell secondhand, and recycling.
  20. Merc a ri’s Strengths: From Kids to Seniors Teaching about

    money with Merc a ri Eriko and Kanata (2nd grade) Ozaki 
 Kanata is in second grade. With his mom, he sometimes sells his toys on Merc a ri, and also crafts made of sea glass he picks up from the beach to earn a little bit of money. According to his mom, Merc a ri is the best way to teach children about money. Making life changes with Merc a ri Mr. Kudo (80s) 
 Mr. Kudo lives in Chiba Prefecture, and started using Merc a ri after his daughter and her husband, who live in Tokyo, invited him to move near them. As part of his final arrangements, he started selling Buddha statues, ukiyo-e prints, kimonos, and other belongings left by his parents on Merc a ri. Now, he’s super excited selling on Merc a ri. He says he wants to get rid of things he doesn’t need and go to his daughter’s in Tokyo. A new purpose in life with Merc a ri The Hikawas 
 Ms. Hikawa (right) is the daughter of a woman in her 80s, a seamstress who has run a sewing factory for 60 years. After her father, who ran the sewing factory with her mother for many years, passed away, and her mother retired, she thought she needed to help her find a new passion in life. That’s how her mother started selling clothes on Merc a ri. “My mother made a beautiful dress out of a kimono, and when she sold it on Merc a ri, people started to buy and comment to thank her and give their thoughts. My mother said that if they are so happy with it, she’ll just have to keep sewing. This has given her a new purpose.” Merc a ri: The best way for creators to sell their work Kirari Ando (20s) Kirari Ando is a heavy user: she has been using Merc a ri for about 4 years, selling smartphone cases she makes herself, and buying mainly beauty and other everyday items on Merc a ri. "If you are an independent creator, Merc a ri is the best way to sell your work. Merc a ri users respond very well, and they show their appreciation the most, so it's really fun and exciting," she says. 20
  21. Merc a ri’s Strengths: Safe & Secure Maintaining a customer

    service system Merc a ri’s customer service system operates all day, every day, ensuring users can enjoy a safe and secure experience. Merc a ri monitors listings/transactions both manually and with automated detection systems to identify items that violate terms of use, making every effort to promptly remove any counterfeit/stolen goods. These systems are based on copius data from item information and transactions as well as AI technology. We strive to improve their accuracy and expand their scope in an effort to create a secure environment for users. 365 days / 24 hours Countermeasures in place to prevent fraudulent listings and actions User inquiries Respond to direct inquiries from users, including inquiries through Twitter and Facebook. Guideline violations Reporting Investigate user reports of guideline violations and take measures to remove items and suspend sellers found to be in violation. Monitoring Identify items and listers that may be in violation of guidelines and take measures to remove items and suspend sellers found to be in violation. Responses to user inquiries: 09:00–23:00 
 Monitoring and responses to reports of guideline violations: 24/7 21
  22. Merc a ri’s Strengths: Safe & Secure Cooperating with authorities

    Merc a ri strives to provide a safe and secure service for all users by cooperating with public institutions and law enforcement. The aim is to work towards making not just Merc a ri, 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, the Association of Consumer Affairs Professionals (ACAP), and the National Shoplifting Prevention Organization (NSPO). The company also takes a proactive role in exchanging opinions and drawing up guidelines. 22 Inquiries & information Responses & reports Removes Arrests Criminals Law enforcement/ Public institutions Detecting violations with AI Merc a ri employs AI technology to automatically detect transactions that violate the terms of use. By combining this technology with extensive transaction data and item information data, the company aims 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. × 2. Calculate violation scores 1. Item listed 3. CS checks reported items Listings violating terms of use 
 →will be deleted Normal listings 
 →will be unhidden *Examples of items that violate terms of use: gaming accounts, counterfeit items, medicine, etc.
  23. Merc a ri’s Strengths: Safe & Secure Inhibiting fraud by

    enhancing identity verification Since February 2019, listers are required to provide their personal information (address/full name/date of birth) when registering. 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. Compensation If a product arrives damaged or defective, we offer returns and compensation. Eligible items include unintentionally purchased counterfeit goods, items with a defect or damage not included in the description, and shipping fees for when an accident occurs with Merc a ri Shipping. Merc a ri strives to ensure legitimate items are safely delivered to the buyer, but in the event that a user purchases counterfeit or defective goods, they are also eligible for a return or compensation. Awareness activities for adolescents and educators 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 Merc a ri with a sense of security. 23
  24. Received a Special Award (Committee Award) in the Online Shopping

    Mall Operator Category of the 
 FY2020 Best Contributors to Product Safety Awards (PS Awards 2020) In the Ministry of Economy, Trade and Industry’s Product Safety Awards, which are held to encourage 
 greater commitment to improving product safety and to firmly establish the value of product safety 
 throughout society, Merc a ri was recognized for the following initiatives: - Having the CEO participate in discussion of rules regarding listed items - Monitoring rule-violating listings and transactions using automatic detection systems and customer 
 service investigations - Responding to notifications from METI regarding product recalls and other notices issued by 
 businesses due to product safety issuesɹ - Coordinating with manufacturers/importers to provide recall information to users (Recalled Items Program) Merc a ri’s Strengths: Safe & Secure Recalled Items Program Merc a ri responds to requests to delete items that infringe IP rights as stipulated by the Provider Liability Limitation Act, but this program simplifies and speeds up this process for rights holders. By entering the program, not only are rights holders able to cut down on the time spent on submitting documents every time they file a claim, but the time to complete their takedown request is also shortened. 24 Intellectual Property (IP) Protection Program Merc a ri’s Recalled Items Program aims to deliver information issued by manufacturers/importers about product recalls and similar product safety issues directly to Merc a ri users who own the products in question (users who have listed or bought the item on Merc a ri). 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.
  25. Safe Trustworthy Humane Free transactions are only possible 

    a safe environment C2C marketplaces are built on 
 the premise of mutual trust We must respect each individual’s values and views and not encourage or promote inhumane behavior Examples of prohibited behavior - Transactions of items which endanger the health and/or lives of individuals - Transactions of items leading to illegal/ criminal acts - In a state of emergency, transactions of items that are essential to protecting people’s health and/or safety (masks and sanitizer in a pandemic, etc.) - Transactions where item details are unknown - Falsifying item details - Failing to comply with item returns even when there are problems with the item - Listing items the user doesn’t actually have - Listing items without the intent to actually sell anything - Items or behavior that promote discrimination based on race, ethnicity, religion, gender, etc. - Verbal abuse, threatening behavior, etc. The Marketplace Merc a ri Strives to Be Through these three principles, we aim to be a diverse and free marketplace that everyone can comfortably participate in. In January 2021, we announced our Marketplace Principles, which were formulated through discussions with external experts. 
 Our Terms of Service and Help Center reflect our fundamental mindset. By sharing this mindset with all participants in our marketplace, we aim to increase the transparency of rule changes, service decisions, and everything else related to the marketplace going forward. 25
  26. 1) Monitor supply and demand in the primary market and

    place restrictions Merc a ri will monitor supply and demand in the primary market and enforce listing restrictions on items that are essential to protecting people’s health and/or safety in an emergency situation such as COVID-19. Ensure user safety with listing restrictions *COVID-19 example 2) Provide information so users feel at ease buying items In cases where demand temporarily outpaces supply for an item causing prices to surge, Merc a ri will work with primary distribution companies to issue warnings, provide information through blog entries and news articles, and notify users of temporary jumps in price with a price alert feature to ensure that users don’t inadvertently buy items at high prices. Create an environment where users are provided with 
 enough information to feel at ease buying items Handling items whose prices surge due to unbalanced supply and demand The Marketplace Merc a ri Strives to Be 26
  27. Market Potential of C2C EC Marketplace Apps in Japan The

    market for C2C EC marketplace apps in Japan grew to 1,958.6 billion yen (12.5% increase from the previous year) over seven years. This is enormous growth considering that C2C marketplace apps only started to gain traction in 2012, and the market continues to hold great potential for growth. 1,740.7 
 billion JPY 2019 C2C EC Market Size in Japan 1. Source: “FY2020 E-Commerce Market Survey Report”, Ministry of Economy, Trade and Industry ɹɹɹThe C2C EC market refers to the sum of the marketplace app and online auction markets. 2. Source: Company information. Merc a ri JP GMV from July 2020 to June 2021 3. Source: Ministry of Economy, Trade and Industry (April 2018). Estimated total value of items described as “items that became no longer needed over the past year.” Excludes automobiles, motorcycles, and motor scooters. 2020 C2C EC market1 ɹ Approx. 1,958.7 billion JPY (YoY +12.5%) ɹ Merc a ri GMV2 784.5 billion JPY 1,958.6 
 billion JPY Estimated value of unwanted items3 Approx. 
 7.6 trillion JPY/year ʢYoY +12%) 27
  28. Future Growth 28 Large potential interest in listing 36.1 million

    People who want to list but haven’t done so yet* 20.69 million Merc a ri MAU Would like to list if Merc a ri improved some of its features, or if listing was easier - Want to list items - Would like to list items 
 someday Total number of listings While the total number of listings is growing steadily, we estimate that there are 36.1 million people who want to list items but haven’t done so yet. 1. Based on a survey conducted in April 2021 that polled 9,189 men and women aged 18 to 74. Survey contractor: Macromill ɹLister prospects recognize Merc a ri and intend to list items, but have not listed anything yet; the survey does not take into consideration app DL or buying experience. 2. Some lister prospects are included in MAU. 2.5 billion December 4, 2021 Million items
  29. Future Business Development: Offline Expansion Expanding offline touchpoints with physical

    shops, Merc a ri Posts, and more We aim to create Merc a ri touchpoints in areas convenient for users’ daily lives with Merc a ri Station (Merc a ri's first physical shop), Merc a ri Posts (unstaffed Merc a ri mailboxes), and more. 29 Merc a ri Station (Shinjuku Marui Main Building)
  30. Future Business Development: Data Integration 30 Creating new business opportunities

    by integrating primary distribution and secondary distribution *In using data, Merc a ri will be careful with personal information and utilize data only with user consent. Merc a ri aims to integrate secondary distribution data with the item data and customer data held by primary distribution companies, using it to visualize the secondary distribution process and other aspects of the item life cycle and customer journey. By doing so, Merc a ri and its partners will aim to engage customers in the primary distribution market and create new buying experiences and customer experiences, with corporate marketing, product planning, new solution development, and more.
  31. Future Business Development: Integration with DOCOMO 31 Merc a ri

    and DOCOMO entered a business alliance in February 2020 and began integrating IDs in June of the same year. In early September, the two companies enabled use of a single QR code for d Payment and Merp a y. ࿈ Integrate wallets Share merchants d POINT CLUB members: 87.21 million Merc a ri MAU: 20.69 million Annual use: Approx. 200 billion points Integrate Merc a ri IDs and d ACCOUNTs to share users Annual GMV: Approx. 784 billion yen 10M accounts integrated
  32. Future Business Development: Crossborder Sales 32 Crossborder sales available to

    over 100 countries, including China, Taiwan, and Southeast Asia In November 2019, Merc a ri began crossborder sales to more than 100 countries and regions in partnership with Buyee, a proxy service for crossborder e-commerce, and in August 2020, Merc a ri partnered with Shopee, the largest marketplace in Southeast Asia and Taiwan. In March 2021, Merc a ri also began crossborder sales through Taobao and Xianyu. Both services are owned by Alibaba Group, operator of the largest marketplace platform in China. Some items that users aren’t able to sell within Japan are highly valued by buyers overseas, and Merc a ri has seen purchases from approximately 100 countries and regions, including Trinidad and Tobago, Uganda, and Monaco, as well as the Asian countries and regions that account for half of all crossborder transactions. The Entertainment and Hobbies category is particularly popular with overseas buyers.
  33. Businesses 33

  34. Mission Building trust 
 for a seamless society

  35. Growth of Features/Services Since Merp a y’s Launch 2019.2-3 iD

    Payments/ QR Code Payments Available at 2.36 million iD and Merp a y merchants nationwide, including convenience stores, restaurants, drug stores, and fast food *As of Sep 30, 2021 (merchants with both iD/QR counted once only) 2020.7 Merp a y Smart Payments Allows users to defer payment for items based on past usage of Merc a ri and Merp a y Online Payments Enables use of Merp a y for not only offline purchases, but online as well 2020.9 Send/receive Enables users to send their Merp a y balance/points to family and friends No-contact service 2019.4-5 Growing Wallet Enables users to utilize their Merp a y balance on the peer- to-peer investment service Funds 2020.11 2021.3 Shared d Payment/ 
 Merp a y QR code Enables use of single QR code for both d Payment and Merp a y Virtual card Enables users to easily issue a card number which can be used to pay using Merp a y balance at many online stores Identity verification using Japan’s Individual Number Card (JPKI) 
 Support for identity verification using Japan’s public Individual Number Card identification service (JPKI) Merp a y Smart Payments 
 (fixed-amount) Allows for “fixed-amount payments,” whereby users pay in installments from the following month onwards Merc a ri Donation Enables donation of Merp a y balance, charged from Merc a ri sales balance or bank account, etc., to local governments and other organizations of the user’s choice Merp a y Smart Money 2021.8 A small-sum loan service that Merc a ri users can apply for within the Merc a ri app and that utilizes Merc a ri usage history to determine a user’s interest rate and borrowing limit 35
  36. Merp a y's Users The number of Merp a y

    users1 is 12.92 million, with an 80% retention rate for first-time users2. 1. Total number of unique users who are registered for Merp a y Electronic Money, or used Merp a y Code Payments, Online Payments, Merp a y Smart Payments, etc. as of FY 2022 3Q 2. The ratio of unique users who made a payment using Merp a y for the first time at an offline merchant in May 2019, and made a payment using Merp a y again the following month. This does not include users who made their first payment entirely using points awarded for free. Retention Rate of First-time Users Number of Users Over 10 million Merp a y users 36
  37. *Includes select store locations where Merp a y is not

    available. Merp a y Merchants Both iD Payments and Merp a y Code Payments are available at 2.64 million locations nationwide 
 (as of March 2022, including locations scheduled to implement Merp a y). and more... 37
  38. Merp a y Merchants (Helping Introduce Merp a y to

    Small- to Medium-Sized Merchants) In January 2020, Origami Inc. joined Merc a ri Group through Merp a y’s acquisition of Origami shares, and Merc a ri/Merp a y concluded an agreement for a business alliance with Shinkin Central Bank. In the beginning of September 2020, Merp a y launched use of a shared QR code between Merp a y and DOCOMO’s d Payment service. We have promoted the introduction of Merp a y to small- to medium-sized local businesses and conducted Merc a ri Workshop sessions as well, aiming to create the kind of “highly sustainable, circular economy” where users can take the money obtained from selling unneeded items on Merc a ri and channel it into these communities with Merp a y. 38
  39. Building a Primary-Secondary Distribution Cycle with Merc a ri and

    Merp a y 39 Receive money for sale/charge balance Receive item We are building a sustainable cycle where users can use Merc a ri to sell unneeded items around the house for money, then use Merp a y to spend that money on purchases from stores (primary distributors). Sell unneeded items on Merc a ri Purchase new items using Merc a ri sales balance, etc.
  40. Strengthening Collaboration with Merc a ri Released a feature in

    March 2020 that allows users to easily list items on Merc a ri using their Online Payments purchase history. 40 Purchase online with Merp a y List on Merc a ri with just one tap Receive sales proceeds
  41. Merp a y’s Three Focus Areas • Lump-sum payment: 

    Defers payment to the following month • Fixed-amount payment: 
 Pay in installments over several months • Started services allowing users to use their Merp a y balance for asset management and more Payment Credit Growing Wallet Lump-Sum Payment Fixed-Amount Payment Asset Management Pay for everyday purchases all at once the following month Treat yourself now and pay over several months at a fixed amount of your choice • Providing a virtual card in addition to iD payment and code payment iD Code Payment Hold your phone over a reader Scan a code Virtual Card Input a number 1. Launched March 3, 2021 41
  42. Businesses 42

  43. Merc a ri US Got stuff you don’t use? Sell

    or buy almost anything from home. 43 Your Marketplace Merc a ri’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.
  44. Looking Back on the US Business 44 Oct 2016 Expanded

    beyond beta version (began charging 10% sales fee) 2014 Sep 2014 Released US app beta version 2016 Feb 2017 Opened customer support branch in Portland, Oregon Mar 2018 Rebranded Merc a ri US 
 Redesigned app Mar 2019 Opened Boston office for AI research Jan 2014 Launched Merc a ri, Inc. Opened San Francisco office 2017 2018 2019 2020 Jun 2017 John Lagerling 
 joined Jun 2020 Reached 100M USD GMV in Q4 May 2018 Opened Palo Alto office in the heart of Silicon Valley Nov 2018 Launched Merc a ri Pack and Ship Jul 2021 Launched nationwide delivery partnership with Uber 2021
  45. YoY +10% (Million users) YoY -6% (Million USD) (Million users)

    (Million USD) 45 1. Quarterly average number of users who browsed our service (app or web) at least once during a given month. US Business in Numbers GMV/MAU1
  46. Positioning 46 Local Pickup Only Ship Only Cross Category Category

    Specific • Aim to be the easiest and safest cross-category C2C marketplace by providing a variety of shipping options in addition to continuing to pursue ease of use toward establishing a unique position in the US market • See a massive opportunity in local shipping Existing shipping options Enhanced local shipping
  47. Service Optimization 47 Optimizing the Experience for US Users We

    work to improve the UI and UX of Merc a ri US to reflect the needs of our US users. In March 2018, we rebranded, including a logo change, to more effectively build brand recognition in the US. In November 2018, we released Merc a ri Pack & Ship, a service where users can bring the items they’ve sold to a UPS Store® and have the staff pack and ship them. In June 2020, we began a trial of same-day door-to-door delivery in San Francisco through cooperation with on-demand delivery platform Postmates. We expanded this trial to New York in October of the same year, and in July 2021, launched the Merc a ri Local service nationwide through a partnership with Uber. We offer a unique Merc a ri experience by incorporating the specific needs and preferences of users in the US.
  48. Price suggest/Smart pricing Launched in May 2020. Suggests a reasonable

    price for an item, and automatically adjusts the price within a range predetermined by the user if it has yet to sell. 48 Authentication service Launched in Nov 2019. Provides authentication of brand-name item listings through partnership with an external service. QR codes for shipping Launched in Aug 2020. Users can easily ship items just by showing a QR code, without a shipping label. Service Optimization
  49. Future Business Development 49 Automation Improve the price suggest feature,

    and reduce confusion over price setting - Create an even simpler and more convenient service to promote usage by current users - Grow the market by focusing on increasing awareness of our service and acquiring new users Shipping innovation - Increase regions offering same-day shipping (Merc a ri Now) - Further innovate shipping Ease of use - Unify the design system across the app/web - Continue investments in web as a platform for power sellers - Introduce option to pay in installments
  50. Businesses 50

  51. Helping Anyone Take Their Business Online Through Souzoh An online

    shopping platform that allows anyone to easily open an online store using just their smartphone 51
  52. Issue 1 Opening an online shop is difficult without tech

    knowledge or experience Issues faced by producers/small business owners starting online shops Issue 2 Many producers/small business owners find that even if they open an online shop, their products don’t sell With Merc a ri Shops, we leverage our strengths in the C2C marketplace business to solve issues faced by producers, creators, and small business owners when opening online shops Easy Sell Utilizing Merc a ri’s Strengths to Solve Barriers to 
 Online Sales Provides easy-to-use online store management with familiar Merc a ri UX Provides the opportunity to sell directly to Merc a ri's 20.69 million MAU, removing the need to gather customers 52
  53. Allows users to set up a stand- alone website 

    for their online shop 
 outside of the app as well 
 (To be provided within 2022) Outside the Merc a ri app Displays shop operators’ items on the app under the Shop tab and on the search screen 
 (To be provided within 2021) On the Merc a ri app Allows users to set up an online shop even without technical knowledge or expertise ... Inflow from social media Over 20 million monthly active users buy and sell on the Merc a ri app Using just their smartphones, users can: • Manage listings • Manage shipping • Manage sales Future Expansion of Merc a ri Shops 53 Going forward, we also plan to provide our users with a feature that will allow them to not only create an online shop within the Merc a ri app, but also to create stand-alone websites for their shops outside of the Merc a ri app. With this feature, users will be able to manage their shop both on and outside the Merc a ri app at the same time, all from within their smartphone. Companie s Individual s Sole proprietor s
  54. Mercoin 54 Creating a marketplace where people can easily exchange

    value in all its forms With Mercoin, which was established on April 28, 2021, we will work on planning and developing services related to cryptoassets and blockchain technologies. By taking on the cryptoasset business, we will make it even easier for users to utilize financial services within Merc a ri, such as by allowing users to receive payment for Merc a ri sales in bitcoin and providing a single wallet function that incorporates not only Merp a y’s payment and remittance services, but credit, cryptoassets, and asset management features as well. Merc a ri 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).
  55. Mercoin 55 A new kind of distributed marketplace born from

    blockchain technology The product we envision NFT initiatives We would like to use NFTs to circulate new digital content, services, ownership rights, and more to expand Merc a ri and empower athletes, artists, creators, and other individuals in areas such as art and games. We will make it even easier for users to utilize financial services within Merc a ri, such as by allowing users to receive payment for Merc a ri sales in bitcoin and providing a single wallet function that incorporates not only Merp a y’s payment and remittance services, but credit, cryptoassets, and asset management features as well.
  56. 56 Appendix

  57. Leadership 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 Merc a ri, Inc. Shintaro Yamada Profile Aug 2001 Feb 2005 Sep 2010 Feb 2013 Mar 2014 Sep 2015 Nov 2015 Apr 2016 Apr 2017 Sep 2019 Jan 2021 Unoh Ltd Representative Director Unoh Ltd renamed to Unoh Inc. Zynga Japan K.K. General Manager (due to acquisition) Kouzoh, Inc. (currently Merc a ri, Inc.) Founder and CEO Merc a ri, Inc. Director (current position) Souzoh, Inc. (old) Director Merc a ri Europe Ltd Director Merp a y Ltd Director CEO Representative Director, President, Chief Executive Officer (current position) Souzoh, Inc. Director Representative Director, President, Chief Executive Officer / Director of Souzoh, Inc. 57
  58. After graduating from Waseda University, Fumiaki Koizumi joined Daiwa Securities

    SMBC, where he managed the IPOs of IT 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 Merc a ri, Inc., where he assumed the role of Director in March 2014. He was appointed as President & COO in April 2017. Fumiaki Koizumi Profile Apr 2003 
 Dec 2006 Jun 2008 Jun 2012 Jul 2012 Dec 2013 Dec 2013 Mar 2014 Sep 2015 Apr 2017 Aug 2019 Sep 2019 Director, President / President of Kashima Antlers F.C. Co., Ltd. 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 Merc a ri, Inc. Merc a ri Director, Corporate Division Souzoh, Inc. Director Merc a ri COO; Director, Corporate Division Chief Executive Officer of Kashima Antlers F.C. Co., Ltd. (current position) Director, Chairperson 58 Leadership
  59. Leadership (Senior Vice President) After graduating from Waseda University, Tamonoki

    joined GMO Cloud K.K., where he handled CS work, a server-hosting business, and the launch of new businesses. In 2010, he joined pixiv Inc. as a company director, supervising areas including system development, marketing, and growth. He was appointed representative director and CEO of animateLAB, Inc. in January 2016, starting its retail-focused IT business. He joined Merc a ri as a Vice President in February 2017. He was appointed CEO of Merc a ri Japan as an executive officer in October 2018. He assumed the role of Senior Vice President of Global Expansion in January 2022. Hirohisa Tamonoki Profile Apr 2004 Mar 2010 Jan 2013 Sep 2014 Oct 2014 Jan 2016 Feb 2017 Oct 2018 Sep 2019 Sep 2020 Jan 2022 Joined GMO Hosting and Technologies, Inc. (currently GMO CLOUD K.K.) Joined pixiv Inc. Executive Officer of pixiv Inc. Director and COO of pixiv Inc. Representative Director and Vice President of animateLAB, Inc. Representative Director and President of animateLAB, Inc. Glossom, Inc. Executive Board Member Vice President of Merc a ri, Inc., Merc a ri Japan CEO Director of Merc a ri, Inc., Merc a ri Japan CEO Senior Vice President, Merc a ri Japan CEO Senior Vice President of Global Expansion (current position) Senior Vice President of Global Expansion 59
  60. Leadership (Senior Vice President) John Lagerling holds a masters from

    the Stockholm School of Economics and conducted his master’s thesis research at the University of Tokyo, Graduate School of Economics. After spending seven years at Google in various leadership positions, including Director of Android Global Partnerships, in 2014 he assumed the position as Vice President of Facebook, Inc., where he headed global business development, mobile partnerships, and other business partnership initiatives. 
 Lagerling joined Merc a ri, Inc. as Executive Officer and Chief Business Officer in June 2017. He assumed the role of Senior Vice President of Global Strategy in addition to his position as CEO of Merc a ri, Inc. (US) in January 2022. John Lagerling Profile May 2002 Nov 2006 May 2009 May 2010 May 2014 Oct 2014 May 2016 June 2017 Jul 2017 Sep 2017 Sep 2020 Jan 2022 Senior Vice President of Global Strategy / Chief Executive Officer of Merc a ri, Inc. (US) Joined NTT Docomo Inc. Google, Inc., Strategic Partner Development Manager, Head of Mobile Business and Product, Japan & Asia-Pacific AdMob, Vice President and General Manager for Japan and Korea Google, Inc. Senior Director Android Global Partnerships Facebook, Inc. VP Business Development, Mobile and Product Partnerships Cronologics Corporation Co-Founder and Board Member Modern Times Group MTG AB Non Executive Board Member Merc a ri, Inc. CBO Digital Domain 3.0 Non Executive Board Member Merc a ri, Inc. CBO; Merc a ri, Inc. (US) CEO Senior Vice President, Merc a ri, Inc. (US) CEO Senior Vice President of Global Strategy / CEO of Merc a ri, Inc. (US) (current position) 60
  61. After working at Deutsche Bank, Naoki Aoyagi joined GREE, where

    he held the positions of CFO, CEO of GREE’s US corporation, and general manager before stepping down from his role as Executive Director in September 2016. In November 2017, he assumed the role of Merp a y CEO, and he is responsible for promoting Merc a ri’s payment and financial businesses utilizing his expertise of the financial and tech industries on a global scale. He has also held the position of Merc a ri Senior Vice President since September 2020. He assumed the role of Senior Vice President of Japan Region in January 2022. Naoki Aoyagi Profile Apr 2002 
 Mar 2006 Jul 2006 Jan 2011 Mar 2014 Jan 2017 Nov 2017 Dec 2017 Jul 2018 Sep 2018 Sep 2020 Apr 2021 Jan 2022 Joined Deutsche Securities Limited (currently Deutsche Securities Inc.) Joined GREE, Inc. GREE, Inc. Director GREE International, Inc. CEO and Board Member Glossom, Inc. Representative Director Glossom, Inc. Executive Board Member Merp a y, Inc. CEO Crowdworks, Inc. Outside Director Merp a y Connect, Inc. Representative Director Merc a ri Director Senior Vice President / CEO of Merp a y, Inc. Senior Vice President / CEO of Merp a y, Inc. CEO of Mercoin, Inc. Senior Vice President of Japan Region / CEO of Mercoin, Inc. (current position) Senior Vice President of Japan Region / Chief Executive Officer of Mercoin, Inc. 61 Leadership (Senior Vice President)
  62. Leadership (Souzoh) Yuki Ishikawa Souzoh, Inc. Representative Director, Chief Executive

    Officer 62 After graduating from the University of Tokyo, Yuki Ishikawa (right) joined Nintendo Co., Ltd. in 2012. In 2014, he joined Moi Corporation (TwitCasting), where he worked on various development projects and new services. He joined the Merc a ri Group as a member of the previous Souzoh, Inc. in June 2017. Later, he transferred to Merc a ri, Inc., and in July 2020, was appointed VP of Product at Merp a y, Inc. Suguru Namura Souzoh, Inc. Director, Chief Technology Officer After working as a contracted developer, Suguru Namura (left) joined CyberAgent, Inc. in 2004, where he worked on launching new media and game services. He joined Merc a ri, Inc. in 2016. After transferring to the US and leading development of the US version of Merc a ri, he assumed the role of CTO in April 2017.
  63. Leadership (Merlogi Inc,) 63 Tomoyuki Shindo After graduating from university,

    Tomoyuki Shindo joined Yamato Transport, where he held positions such as branch manager. In 2007, he joined IBM Japan. There, he was responsible for projects including business strategy and process improvements for transport/logistics companies in the consulting division. In 2013, he joined Amazon Japan, where he was mainly in charge of mid- to long-term logistics network strategy and establishing new logistics networks. After leaving Amazon in 2020, he was involved in conceptualizing a next-generation online supermarket as Head of Transportation and Logistics at AEON NEXT Preparation Co., Ltd. In October 2021, he was appointed Representative Director and COO of Merlogi, and he became Representative Director, Chief Executive Officer of the company in February 2022. 
 Merlogi Inc, Representative Director, Chief Executive Officer
  64. Working Environment Merc a ri has various systems to ensure

    members are able to work comfortably and creatively. Our benefits system, which is loved and called Merci Box by our employees, 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 maternity/paternity leave, financial support for fertility treatment, financial support for private preschools, and financial support for children who are ill, as well as life insurance for all employees. Maternity/paternity leave Caregiving support Paid childcare and caregiving leaves Financial support for fertility treatments Financial support for childcare costs Financial support for private preschools Support in times of need 64 Trial is now underway Financial support for egg freezing Financial support for childcare for children less than 1 year of age
  65. ESG Policy (Materiality) 65 Merc a ri has defined the

    following five topics as our materiality, as they relate to creating value to contribute to resolving social and environmental issues through our business, and creating the management foundation necessary for continuous growth. ⿎Materiality re-assessed ɹɹɹCreating a Circular Economy/ ɹɹɹMitigating Climate Change We work to contribute to resolving environmental issues by not only minimizing Merc a ri’s impact on the environment, but also making consumer activities more sustainable through our business. ɹɹɹDiversity & Inclusion We tackle structural discrimination and inequality issues by building a workplace where people of all backgrounds can achieve their maximum potential. We also strive to realize a service accessible to all. ɹɹɹSafe, Secure, and Fair Transactions We strive to provide a platform for secure and fair transactions so our users, merchants, and business partners feel at ease using our service. ɹɹɹCorporate Governance/Compliance We aim to establish a sound and transparent internal management system to earn the trust of not only our users and business partners, but from society as a whole. ɹɹɹLocal Empowerment By finding solutions to issues unique to local communities, we aim to contribute to local economies and empower individuals and businesses. 1. 2. 4. 5. 3.
  66. Merc a ri’s Major Topics (Materiality) 66 66 For a

    society where finite resources are used sparingly, and everyone can create new value. Mission: Create value in a global marketplace where anyone can buy & sell Creating social and environmental value through our business (Maximize our positive impact/Minimize our negative impact) Consolidated net sales: 106.1B JPY1 A management 
 system to support business 
 continuity 1. Creating a Circular Economy/ ɹMitigating Climate Change 2. Diversity & Inclusion ɹ(Providing opportunities for creating diverse value) 3. Local Empowerment Materiality Creating economic value through our business 4. Safe, Secure, and Fair Transactions 5. Corporate Governance/Compliance 2. Diversity & Inclusion ɹ(Providing opportunities for creating 
 diverse value) E S G 1. FY2021.6 (Jul 2020–Jun 2021)
  67. Diversity & Inclusion (D&I) Unconscious Bias Workshop 67 The Unconscious

    Bias Workshop is mandatory for managers at Merc a ri. 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 D&I. (Materials available for free online) 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 D&I. Through this partnership, we will incorporate Merc a ri’s D&I expertise into school education. We run Build@Merc a ri, 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 Build@Merc a ri In order to achieve Merc a ri’s mission and provide a service welcomed by the diverse societies and cultures all around the world, we must first ensure that Merc a ri is an environment that respects and actively incorporates the opinions and ideas of all of our diverse employees. In January 2021, we established the D&I Council, a cross-organization internal committee with CEO Shintaro Yamada as chairperson. In this way, we work to promote D&I both inside and outside of Merc a ri Group.
  68. Using Technology to Change How We Exchange Value 68 Differentiation

    through technology Used by more than 20 million people every month, Merc a ri focuses on differentiating ourselves through technology. As market competition grows fiercer, we believe that using not only our ideas but also advanced technology to make everyone’s life easier faster than any other company is what will make us globally competitive. Merc a ri is a tech company aiming for the world. Focus on AI At Merc a ri, we have a data collection of several billion items that we've gathered over the six years since we started our services. These are all photos and item descriptions that our users wrote when using the Merc a ri app, but this collection is different from that of e- commerce sites since there may be several of these pictures, item names, and details for one particular product. This data is very important for deep learning, allowing us to use pictures and text to create highly accurate machine learning models.
  69. R&D Organization In September 2019, the R4D Advisory Board was

    established with the purpose of consulting external experts to get a third- person perspective and strengthening our decision-making process. Members of the Advisory Board include Prof. Jun Murai of Keio University, Prof. Yoshihiro Kawahara of The University of Tokyo, and Woo-Keun Yoon of the National Institute of Advanced Industrial Science and Technology (AIST). 69 We have committed 1 billion JPY (over five years) to our Value Exchange Engineering collaborative research program with The University of Tokyo RIISE. With this collaboration between academia and industry, we aim to create a world where people all over the world can exchange value fairly and seamlessly. Merc a ri R4D is working together with the Kawahara Lab, the Niiyama Lab, and the Kakehi Lab from The University of Tokyo and the Nakagawa Lab from Osaka Prefecture University to conduct R&D into Poimo (short for “portable and inflatable mobility”), a new electric mobility device. Poimo is a new type of personal mobility that is easily inflatable, making it a comfortable size to ride on while also maintaining portability. NEW Merc a ri R4D was established in December 2017 as a research and development organization to set the concepts of “Research” and the four D’s (“Design,” “Development,” “Deployment,” and “Disruption”) as guidelines for our actions. 
 Currently, in addition to doing research on quantum information technology, blockchain, etc., R4D also carries out activities with the Tech Governance Team, which is involved in policy planning and standardization. See R4D's website for the latest information: https://r4d.merc a ri.com/en/
  70. Sports Business On July 30, 2019, Merc a ri announced

    it took control of Kashima Antlers. • Powerful recognition and reputation • J.League’s top-level management and business development • Promotion of digitization Strengthening business base through technology and business management know-how Energizing local economy by leveraging technology • Marketing and business development • Top-notch technology in the industry • Management supporting rapid growth • Strong bond with Kashima Antlers as its hometown • Tourism development leveraging rich resources Promoting DMO1 (community development) by leveraging tourism resources 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) 70
  71. History Feb Jul Aug Nov 2013 Founded Kouzoh, Inc. with

    a capital of 20M yen Funding: Acquired 50M yen from East Ventures Funding: Acquired 300M yen from UNITED Renamed company Merc a ri, Inc. Corporate Jul 
 Launched the Merc a ri marketplace app Service 71 Jan Mar Apr Oct Nov New company: Founded US subsidiary Merc a ri, Inc. Funding: Acquired 1.45B yen from Global Brain and others New office: Opened the Sendai customer service center Funding: Acquired 2.36B yen from WiL and others New company: Founded UK subsidiary Merc a ri Europe Ltd Began the first television commercials Fully launched the Merc a ri US app Merc a ri (JP) began to charge sales fees (free→10%) Hosted the first real-life marketplace event 2014 2015 Mar Sep 
 Relocated the head office (Roppongi Hills) New company: Founded Souzoh, Inc. to manage new businesses within the Merc a ri Group Apr Started the “RakuRaku Merc a ri Shipping” delivery service May Sep Oct Nov
  72. History 2016 72 2017 Feb Mar Apr May New initiative:

    Introduced the benefits system “Merci Box” Funding: Acquired 8.4B yen from Mitsui & Co. and others New company: Founded UK subsidiary Merp a y Ltd Started the content platform “Mercan” Jan Mar Oct Began anonymous shipping for RakuRaku Merc a ri Shipping Released the community classifieds app Merc a ri Atte Merc a ri (US) began to charge sales fees (free→10%) Feb Mar Apr Jun Jul Nov Dec New company: Zawatt Inc. became a wholly owned subsidiary New office: Opened the Portland customer service center New office: Opened the Fukuoka customer support center Restructuring: Merc a ri, Inc. restructured Shintaro Yamada became CEO Fumiaki Koizumi became COO John Lagerling, former VP of Facebook, joined Started the Merc a ri Fund New company: Founded Merp a y, Inc. New organization: Established R4D, a research and development team with the goal of social implementation Mar Apr May Jun Jul Aug Nov Dec Released the Merc a ri UK app Started the “RakuRaku Merc a ri Shipping for Large-sized Items” delivery service Launched marketplace app for books, CDs, and DVDs Merc a ri Kauru Started “YuYu Merc a ri Shipping” delivery service Launched Q&A site “Merc a ri Box” to resolve questions about Merc a ri Began test operation of monthly deferred payments to allow users to collectively pay for items they purchased the following month Released live video streaming feature “Merc a ri Channel” Launched marketplace app exclusively for brand name items Merc a ri Maisonz Launched official store within the Merc a ri app Released immediate purchase service “Merc a ri NOW” Began requiring identity verification for initial listings Opened Merc a ri Channel to corporations Surpassed 100M downloads around the world (JP, US, UK) Corporate Service
  73. 2018 73 Feb Mar Apr May Jun Oct Nov Dec

    New initiative: Released the personnel system for new graduates “Mergrads” Funding: Acquired 5B yen from Japan Post Capital and others Restructuring: Souzoh, Inc. restructured Daisaku Harada became CEO of Souzoh, Inc. Received new listing approval Listed on the Mothers Section of the Tokyo Stock Exchange Naoki Aoyagi became Merp a y CEO Rebranded Merc a ri, Inc. Joined the Japan Business Federation (Keidanren) Dissolved UK subsidiaries Feb Mar Apr Launched bike share service “Merchari” in Fukuoka Rebranded the Merc a ri US app Launched skill sharing service “teacha” 2019 Jan Feb Mar Jul Oct Closed the Merc a ri UK app Began requiring identity verification when signing up Launched the mobile payment service Merp a y Introduced the image search feature “Merchari” succeeded to neuet, Inc. Started the “Yu-Packet+” delivery service Exceeded 5 million users for the mobile payment service Merp a y LINE Pay and Merp a y formed a strategic business partnership Merc a ri US opened a Boston office for AI research Dissolved Souzoh, Inc. Kashima Antlers F.C. Co., Ltd.. became an owned subsidiary Fumiaki Koizumi appointed as President Hirohisa Tamonoki appointed as a new Director of the Company and CEO of Merc a ri Japan Mar Jun Jul Aug Sep History Corporate Service
  74. History 2020 Corporate Service 74 Merp a y entered a

    basic agreement to acquire all shares of Origami Inc. Merc a ri, Merp a y, and NTT DOCOMO formed a business partnership Donated nearly 47 million yen to 9 organizations working to support those impacted by the spread of COVID-19 Established Experts Committee on the Ideal Form of a Marketplace Jan Feb Jun Jul Released the inventory list feature Released the Easy Listing Integration feature Began the pre-opening of Merc a ri Station, Merc a ri’s first physical shop, in Shinjuku Marui Main Building Enabled users to use d POINTs on Merc a ri Released sending/receiving features on Merp a y Enabled users to use d POINTs on Merc a ri Released Merc a ri Donation feature Released Recalled Items Program Began providing a shared QR code for d Payment and Merp a y Reached a cumulative total of 2 billion items listed on Merc a ri Mar Jun Jul Sep Dec 2021 Announced our Marketplace Principles Established Souzoh, Inc. Established Mercoin, Inc. Mercoin acquired all shares of Basset Inc. Established Merlogi, Inc. Joins Forces with the Six Pacific League Baseball Teams and Pacific League Marketing on“Pacific League Exciting Moments β” Collection NFTs Jan 
 Apr Aug Oct Dec 
 Began crossborder sales through marketplaces Taobao and Xianyu Exceeded 10 million users for the mobile payment service Merp a y Launched “Merc a ri Shops” on a trial basis Launched a small-sum loan service “Merp a y Smart Money” Launched full rollout of “Merc a ri Shops” Began crossborder sales in Taiwan through marketplaces Bibian Launched Pacific League Exciting Moments β Mar Apr Jul Aug Oct Dec 2022 New Management Execution Structure for Merc a ri Group and Changes to Responsibilities for Members of Leadership Jan 
 Launch of “Merc a ri Cool Shipping” (Merc a ri Shops Feature) Mar