Group is made up of Mercari, Inc., and its consolidated subsidiaries. Marketplace Mercari, Inc. Established Activities Locations Oﬃces Representative Representative of Mercari JP February 1, 2013 Planning, development, and operation of the Mercari marketplace app Roppongi Hills Mori Tower, 6-10-1 Roppongi, Minato-ku, Tokyo 106-6118, Japan Tokyo, Sendai, Fukuoka Shintaro Yamada Jeﬀ LeBeau 1. January 28, 2021 2. Planning, development, and management of internet services 3. Yuki Ishikawa Souzoh, Inc. 1. November 20, 2017 2. Financial-related businesses 3. Masato Yamamoto Merpay, Inc. 1. January 2014 2. Planning, development, and operation of the US version of Mercari 3. John Lagerling 4. Palo Alto, CA Mercari, Inc.（US） 1. October 1, 1991 2. Management of a soccer club 3. Fumiaki Koizumi 4. Higashiyama 2887, Aō, Kashima, Ibaraki, Japan Kashima Antlers F.C. Co., Ltd. 1. June 2022 2. Development of internet services 3. Ken Wakasa (Managing Director) 4. Bangalore, Karnataka, India Mercari Software Technologies India Private Limited 1. April 28, 2021 2. Cryptoasset- and blockchain-related services 3. Naoki Aoyagi Mercoin, Inc. 1. Established 2. Activities 3. Representative 4. Locations
Ofﬁcer Fumiaki Koizumi Director, President / President of Kashima Antlers F.C. Co., Ltd. John Lagerling Senior Vice President of Global Strategy / Chief Executive Ofﬁcer of Mercari, Inc. (US) Naoki Aoyagi Senior Vice President of Japan Region / Chief Executive Ofﬁcer of Mercoin, Inc. Hirohisa Tamonoki Senior Vice President of Global Expansion
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 Mercari. Thanks to technology, individuals around the world can now easily connect to buy and sell from each other. Through Mercari, we aim to establish a society where resources are circulated and where people can accomplish their goals without limitations. Mission 6
external partners to create a circular economy ecosystem Global expansion Create a world that uses technology to seamlessly circulate all forms of value, not just physical things, and promote collaboration with various external partners necessary to do so Proceed with expansion into other countries while prioritizing further development of the US business, and further promote D&I and well-being to create a borderless organization where talent all over the world can thrive Payment BtoC NFT Credit CtoC US Security Marketplace Fintech Logistics >>> >>>
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 9 a Pro
materials, and the planet’s other resources form an essential foundation not only for Mercari to continue its business, but for the continued livelihoods of people all over the world. However, it’s said that humankind is currently consuming our natural resources at a rate 1.6 times faster than they can renew. We believe that creating a circular economy, where we use our limited resources smartly, is a fundamental mission we must complete. Mercari is a marketplace where items that someone no longer needs are passed on to someone else who needs them. That means that the more Mercari users we have, the more able we are to affect positive impact on the environment. From the experience of reusing items and increasing interest in sustainability, people will gradually take on a more sustainable approach to buying, using, and disposing of items, ultimately leading to a new form of production/sales and changes all along the value chain. We believe that by encouraging this change around the world, we not only help achieve a circular economy, but help reduce environmental burden and mitigate climate change. The concept of “planetary boundaries,” referring to the limits of our earth’s resources, is becoming more widespread. We use the word “planet positive” to express our desire to help solve environmental issues by continuing to generate positive impact on the environment through our business. Mercari will continue to pursue “planet-positive” action to create a world where anyone can demonstrate their value. 1. Source: Living Planet Report 2020, WWF
from FY2022.6, graph reﬂects retroactive adjustment to combine C2C and B2C 2. Quarterly average number of users who browsed our service (app or web) at least once during a given month (Billion JPY) (Million users) 2 1 (Billion JPY) (Million users)
The market for C2C EC marketplace apps in Japan grew to 2,212.1 billion yen (12.9% increase from the previous year) over 10 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. 1,958.6 billion JPY 2020 C2C EC Market Size in Japan 1. Source: “FY2021 E-Commerce Market Survey Report”, Ministry of Economy, Trade and Industry The C2C EC market refers to the sum of the marketplace app and online auction markets. 2. Source: Company information. Mercari JP GMV from July 2021 to June 2022 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. 2021 C2C EC market1 Approx. 2,212.1 billion JPY (YoY +12.9%) Mercari GMV2 881.6 billion JPY 2,212.1 billion JPY Estimated value of unwanted items3 Approx. 7.6 trillion JPY/year （YoY +12%) 13
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 Mercari 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. Mercari offers a unique customer experience, with a transaction environment that uses an escrow system, where Mercari temporarily holds payments, and simple and affordable shipping options. 15
Listing Barcode Listing Mercari 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
by providing features like AI Listing and Barcode Listing, which use machine learning, and Easy Listing Integration, which imports items bought using Merpay Online Payments into users’ inventory lists on Mercari 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
sold on Mercari easily from this unstaffed mailbox. 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.
like a treasure hunt Mercari 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. Mercari 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 Mercari 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 Mercari’s Japan business 20 Sports/Leisure 8% Electronics 10% Women’s clothing 18% Entertainment 29% Men’s clothing 13% Cosmetics/Beauty 6% Other 10% 4% Interior goods Babies/Kids 2% 4%
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 Mercari Shipping. Mercari 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 Mercari with a sense of security. 23
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, Mercari 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 issues - Coordinating with manufacturers/importers to provide recall information to users (Recalled Items Program) Mercari’s Strengths: Safe & Secure Recalled Items Program Mercari 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 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.
million People who want to list but haven’t done so yet* 20.7 million Mercari MAU Would like to list if Mercari 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 Lister prospects recognize Mercari 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
physical shops, Mercari Posts, and more We aim to create Mercari touchpoints in areas convenient for users’ daily lives with Mercari Station (Mercari's ﬁrst physical shop), Mercari Posts (unstaffed Mercari mailboxes), and more. 26 Mercari Station (Shinjuku Marui Main Building)
opportunities by integrating primary distribution and secondary distribution In using data, Mercari will be careful with personal information and utilize data only with user consent. Mercari 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, Mercari 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.
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. The platform was fully launched in October 2021. 28 What Is Mercari Shops?
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 Mercari 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 Mercari’s Strengths to Solve Barriers to Online Sales Provides easy-to-use online store management with familiar Mercari UX Provides the opportunity to sell directly to Mercari's 20.69 million MAU, removing the need to gather customers 29
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 their regular bank account, or the BNPL (buy now, pay later) Merpay Smart Payments service to pay for purchases at physical stores and online with their smartphone. Merpay supports both iD contactless payments and code payments and can be used at convenience stores, restaurants, drug stores, fast food chains, and other stores across Japan. 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.
to the following month • Fixed-amount payment: Pay in installments over several months • Started services allowing users to use their Merpay 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 33 Borrow when needed and repay ﬂexibly: interest rates ﬂuctuate depending on the borrower's usage of Mercari Merpay Smart Money1
addition of Merpay 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. Shipping Goods Money Transaction History Credit Information Payment Credit Merpay Smart Money Fixed-amount payment Aiming to achieve their dreams Sales
(including locations scheduled to implement Merpay)2 1. Total number of unique users who are registered for Merpay Electronic Money, or used Merpay Code Payments, Online Payments, Merpay Smart Payments, etc. as of Sep. 30, 2022. 2. As of Sep 30, 2022 (merchants with both iD/QR counted once only; including locations scheduled to implement Merpay) The mobile payment service Merpay launched in February 2019 13.94 million 2.64 million Number of supported ﬁnancial institutions Over 300
36 Receives sales proceeds/charges balance Receives item Mercari Group’s services form a sustainable cycle in which users sell things they no longer need on Mercari (secondary distribution) and use the resulting sales proceeds to shop at physical and online stores (primary distribution) through Merpay. Sells things they no longer need on Mercari Buys new things using Mercari sales balance
Released a feature in March 2020 that allows users to easily list items on Mercari using their Online Payments purchase history Purchase online with Merpay List on Mercari with just one tap Receive sales proceeds
38 Deferred payment is not available to users under the age of 18. Users 18 or 19 years of age have an upper usage limit of 50,000 yen. Fixed-amount payment is not available to users under the age of 20. Total usage limit for deferred payments + ﬁxed-amount payments is 500,000 yen. • Smart Payments 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. • Smart Payments provides ﬂexible deferred payment/ﬁxed-amount payment options, allowing users to adjust repayment amount at any time.
41 • 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 Maximum borrowing limit is 200,000 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.
exchange value in all its forms Mercoin was established on April 28, 2021. June 17, 2022, Mercoin has completed registration as a cryptocurrency exchange in accordance with the Payment Services Act. Mercoin will begin enabling users to exchange proceeds and points earned from their sales on the Mercari app, as well as their Merpay balance, for bitcoins. The company plans to implement this change by the end of FY2023. By taking on the cryptoasset business, we will make it even easier for users to utilize ﬁnancial services within Mercari, such as by allowing users to receive payment for Mercari sales in bitcoin and providing a single wallet function that incorporates not only Merpay’s payment and remittance services, but credit, cryptoassets, and asset management features as well. 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).
buy almost anything from home. 44 Your Marketplace 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.
Expanded beyond beta version (began charging 10% sales fee) 2014 Sep 2014 Released US app beta version 2016 Mar 2018 Rebranded Mercari US Redesigned app Jan 2014 Launched Mercari, 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 Mercari Pack and Ship Jul 2021 Launched nationwide delivery partnership with Uber 2021 Jun 2021 Achieved ﬁrst proﬁtable quarter in Q4 Sep 2021 Launched deferred payment (BNPL) service with Zip
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
We improved the UI and UX of Mercari US to reﬂect the needs and preferences 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 Mercari 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 July 2021, we launched the same-day door-to-door delivery service Mercari Local nationwide through a partnership with Uber. We also added large furniture to Mercari Local's category offerings starting June 2022. This was done in partnership with Dolly, a logistics company that offers an app where users can order short-distance transportation of large items.1 1. Launched a pre-release stage with service availability limited to ﬁve states
reasonable price for an item, and automatically adjusts the price within a range predetermined by the user if it has yet to sell. 49 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
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 (Mercari 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
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. 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 Mercari, Inc.) Founder and CEO Mercari, Inc. Director (current position) Souzoh, Inc. (old) Director Mercari Europe Ltd Director Merpay Ltd Director CEO Representative Director, President, Chief Executive Ofﬁcer (current position) Souzoh, Inc. Director Representative Director, President, Chief Executive Ofﬁcer / Director of Souzoh, Inc. 52
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 Mercari, 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 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 53 Leadership
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 Mercari as a Vice President in February 2017. He was appointed CEO of Mercari 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 Mercari, Inc., Mercari Japan CEO Director of Mercari, Inc., Mercari Japan CEO Senior Vice President, Mercari Japan CEO Senior Vice President of Global Expansion (current position) Senior Vice President of Global Expansion 54
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 Mercari, 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 Mercari, 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 Mercari, 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 Mercari, Inc. CBO Digital Domain 3.0 Non Executive Board Member Mercari, Inc. CBO; Mercari, Inc. (US) CEO Senior Vice President, Mercari, Inc. (US) CEO Senior Vice President of Global Strategy / CEO of Mercari, Inc. (US) (current position) 55
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 Merpay CEO, and he is responsible for promoting Mercari’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 Mercari 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 Merpay, Inc. CEO Crowdworks, Inc. Outside Director Merpay Connect, Inc. Representative Director Mercari Director Senior Vice President / CEO of Merpay, Inc. Senior Vice President / CEO of Merpay, 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. 56 Leadership (Senior Vice President)
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 57 Financial support for egg freezing Financial support for childcare for children less than 1 year of age
that we must take on in order to realize our long-term vision. Following internal and external changes, Mercariʼs materiality was updated in 2021 from how it was originally deﬁned in 2019. Mercari 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. 1 Creating a Circular Economy/ Mitigating Climate Change We will continue to pursue our idea of planet positive, where Mercari not only minimizes its environmental burden but helps solve environmental issues through its business and creates a circular economy where our ﬁnite resources are used sparingly. 2 Diversity & Inclusion We tackle structural discrimination and inequality issues by building a work environment where people of all backgrounds can achieve their maximum potential. We also strive to realize a service accessible to all. 3 Local Empowerment By ﬁnding solutions to issues unique to regions across the country, we aim to contribute to local economies and empower individuals and businesses. 4 Safe, 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 services. 5 Corporate Governance and Compliance We aim to establish a sound and transparent internal decision-making process to earn the trust of not only our users and business partners, but society as a whole.
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 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 Mercari’s D&I expertise into school education. 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 Build@Mercari In order to achieve Mercari’s mission and provide a service welcomed by the diverse societies and cultures all around the world, we must ﬁrst ensure that Mercari 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 Mercari Group.
Differentiation through technology Used by more than 20 million people every month, Mercari 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. Mercari is a tech company aiming for the world. Focus on AI At Mercari, 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 Mercari 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.
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). 63 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. Mercari 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 Mercari 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.mercari.com/en/
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) 64
with a capital of 20M yen Funding: Acquired 50M yen from East Ventures Launched the Mercari marketplace app Funding: Acquired 300M yen from UNITED Renamed company Mercari, Inc. 65 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 2014 2015 Mar Apr Sep Relocated the head ofﬁce (Roppongi Hills) Started the RakuRaku Mercari Shipping delivery service New company: Founded Souzoh, Inc. to manage new businesses within Mercari Group 2016 Feb Mar Apr Oct New initiative: Introduced the beneﬁts system Merci Box Funding: Acquired 8.4B yen from Mitsui & Co. and others Released the community classiﬁeds app Mercari Atte New company: Founded UK subsidiary Merpay Ltd Mercari (US) began to charge sales fees (free→10%) 2017 Feb Mar May Jul Aug Nov 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
Oct Dec Launched bike share service Merchari in Fukuoka Rebranded the Mercari US app Closed Mercari Atte Launched skill sharing service teacha Received new listing approval Listed on the Mothers Section of the Tokyo Stock Exchange Closed Mercari Maisonz, Mercari NOW, and teacha Rebranded Mercari, Inc. Dissolved UK subsidiaries Closed Mercari Kauru 2019 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 Jan Feb Mar Jul Aug Dec 2020 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 Jan Feb Jun Jul 2021 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’” Launched full rollout of Mercari Shops Established Merlogi, Inc. Joined forces with the six Paciﬁc League baseball teams and Paciﬁc League Marketing on “Paciﬁc League Exciting Moments β” Collection NFTs Jan Apr Jul Aug Sep Oct Dec 2022 Shifted to new management execution structure for Mercari Group and changed responsibilities for members of leadership 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 Opened the new ofﬁce, Mercari Base Tokyo Conducted a large-scale update to the app Jan Jun Sep