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Mercari-Fact-book_en

Mercari, Inc.
January 24, 2024

 Mercari-Fact-book_en

Mercari, Inc.

January 24, 2024
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  1. As of February 2024

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  2.   
    Index
    Company Overview
    P3: Group Mission
    P4: Company Overview
    P5: About
    P6- Leadership
    P8: Values
    P9: Medium-Term Milestones to Achieve
    P10: Positive Impact of Mercari’s Business
    P11: By the Numbers (Consolidated)
    P12: Marketplace—GMV/MAU
    P13: Market Potential
    P14: Japan Region—FY2024.6 Group Synergy
    Businesses
    P15: Marketplace
    P16 – Mercari JP
    P29– Mercari Shops
    P32: Fintech
    P33– Merpay
    P45– Mercoin
    P54– Mercari US
    Appendix
    P62: Governance Structure
    P63– Leadership Profiles
    P69: Working Environment
    P70: ESG Policy (Materiality)
    P71: Diversity & Inclusion
    P72: Mercari R4D (R&D)
    P73: Sports Business
    P74– History
    2

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  3.   
    “Circulate all forms of value to
    unleash the potential in all people”
    3
    Group Mission

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  4.   
    Japan Region
    Mercari Group
    Fintech
    4
    Company Overview
    Mercari Group is made up of Mercari, Inc., and its consolidated subsidiaries.
    Marketplace
    Mercari, Inc.
    Established
    Activities
    Locations
    Offices
    Representative
    Representative of
    Mercari marketplace
    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, Fukuoka
    Shintaro Yamada
    Masato Yamamoto
    1. January 28, 2021
    2. Planning, development, and management of internet services
    3. Kenji Fujiki
    Souzoh, Inc.
    1. November 20, 2017
    2. Financial-related businesses
    3. Takeshi Nagasawa
    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. Keita Nakamura
    Mercoin, Inc.
    1. Established, 2. Activities, 3. Representative, 4. Locations

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  5.   
    About
    February 1st, 2013
    Established
    Tokyo, Fukuoka,
    Palo Alto,
    Bangalore
    Offices
    2,075
    (including subsidiaries)
    Headcount
    5

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  6.   
    Independent Outside Directors (6)
    10 Directors
    Directors (4)
    Shintaro Yamada
       Representative Executive   Officer
    and CEO
    Fumiaki Koizumi
    President / CEO of
    Kashima Antlers F.C. Co.,
    Ltd.
    Makiko Shinoda
    6
    Our Leadership: Directors
    Masayuki
    Watanabe
    4
    Kazuhiko
    Toyama
    Takuya Kitagawa
    Daiken Tsunoda Fumiyuki
    Fukushima
       Mayumi Tochinoki 
    Sayaka Eda
    Executive Officer, Senior Vice President
    of Corporate, and CFO

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  7.   
    7
    Shintaro
    Yamada
    Director, Representative
    Executive Officer and CEO
    Shuji
    Kawano
    John
    Lagerling
    Executive Officer,
    Senior Vice President
    of Global Strategy /
    Chief Executive Officer
    of Mercari, Inc. (US)
    Masato
    Yamamoto
    Executive Officer, Senior
    Vice President of Japan
    Region / Chief Executive
    Officer (Marketplace) /
    Director of Merpay, Inc. /
    Director of Mercoin, Inc. /
    Director of Souzoh, Inc.
    Sayaka
    Eda
    Executive Officer,
    Senior Vice President
    of Corporate, Chief
    Financial Officer /
    Director of Merpay, Inc.
    Our Leadership: Executive Officers
    Hirohisa
    Tamonoki
    Executive Officer,
    Senior Vice President of
    Global Expansion
     Executive Officer,
    Senior Vice President of
    Management Strategy

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  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

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  9.   
    Working with external partners to
    create a circular economy ecosystem Global expansion
    Medium-Term Milestones to Achieve Our Mission
    ● Create a world that uses technology to seamlessly
    circulate all forms of value, not just physical things
    ● Promote collaboration with various external partners to
    work toward creating an ecosystem
    ● Proceed with expansion into other countries, identifying
    the most appropriate business environment and timing,
    while prioritizing growth of the US business
    ● Further promote I&D to create a borderless organization
    where diverse talent all over the world can thrive
    9
    Market-
    place Fintech
    Users
    Mercari External
    Partners
    Technologies
    Safety and
    Security

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  10.   
    10
    ● In select categories1, approximately 530K tons of greenhouse gas emissions were avoided in one year by
    transactions on Mercari2
    ● Mercari strives to be a planet-positive company that contributes to solving environmental issues through its
    business activities by realizing a society in which all forms of value circulate seamlessly.
    10
    1. Target categories: apparel, sneakers, electronics, books/magazines/manga, CDs/DVDs/BDs
    2. Calculations done as a joint project between Mercari and the University of Tokyo RIISE’s Value Exchange Engineering Social Research Division. Includes secondhand items that had been sold under the
    target categories for both Mercari JP and Mercari US between April 2022 and March 2023. Estimated based on factors such as the greenhouse gas emissions involved in the product lifecycle (item
    production, distribution, use, and disposal) and shipping between Mercari users and frequency of use of Mercari and length of product use life calculated from the results of a Mercari user survey,
    under the assumption that items bought on Mercari are used in place of new items, thus avoiding greenhouse gas emissions.
    3. Greenhouse gas emissions multiplied by their respective global warming potential coefficient and converted to the equivalent amount of CO
    2
    Estimated based on factors such as the greenhouse gas
    emissions involved in the product lifecycle and delivery,
    frequency of use of Mercari, and length of product use
    life, under the assumption that items bought on Mercari
    are used in place of new items, thus avoiding
    greenhouse gas emissions2
    Weight of apparel waste avoided thanks to
    its listing on Mercari (Japan only)
    Greenhouse gas emissions avoided
    by transactions on Mercari
    (by category)
    3
    530Ktons
    CO2eq
    Annually
    Approx.
    220
    covered baseball
    stadiums
    Apparel
    Sneakers
    Electronics
    Books,
    comics,
    magazines
    CDs, DVDs,
    BDs
    Approx.
    43Ktons
    of apparel waste
    Approx.
    4,300
    10-ton trucks
    Approximately
    9% of the total
    480K tons
    of clothing thrown
    away yearly
    in Japan
    Positive Impact of Mercari’s Business
    (Avoided Greenhouse Gas Emissions)

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  11.   
    Consolidated Revenue & Core Operating Profit
    (Quarterly)
    Revenue Core Operating Profit1
    YoY
    +9%
    (Billion JPY) (Billion JPY)
    YoY
    +33%
    1. Core operating profit is defined as IFRS operating profit excluding other income/expenses, etc.
    Billion
    JPY
    Billion
    JPY
    11

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  12.   
    Marketplace—GMV/MAU

    12
    YoY
    +9%
    YoY
    +10%
    GMV1/MAU2
    1. Aggregate transaction value after adjusting for cancellations; aggregates C2C and B2C figures
    2. Quarterly average number of users who browsed our service (app or web) at least once during a given month
    Million
    users
    Billion
    JPY
    (Billion JPY)
    (Million users)
    2
    1

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  13.   
    Market Potential of C2C EC Marketplace Apps in Japan

    The market for C2C EC marketplace apps in Japan has grown to 2,363.0 billion yen (6.8% increase from the
    previous year) over 11 years. This is enormous growth considering that C2C marketplace apps only started to
    gain traction in Japan in 2012, and the market continues to hold great potential for growth. 

    2,212.1

    billion JPY
    2021
    C2C EC Market Size in Japan
    2022
    2,363.0

    billion JPY
    Estimated value of
    unneeded items1
    Approx.
    7.6
    trillion JPY
    13
    2022 Mercari GMV4
    Approx. 932.7 billion
    JPY
    2021 Marketplace app market3
    Approx. 1.2 trillion JPY

    Annually
    2022 Online C2C market2
    Approx. 2.3 trillion JPY
    1. Source: Ministry of Economy, Trade and Industry (April 2017, April 2018). The total market size of sales of secondhand goods in stores, sales of secondhand goods online, auctions, etc.
     Excludes automobiles, motorcycles, and motor scooters.
    2. Source: “FY2022 E-Commerce Market Survey Report”, Ministry of Economy, Trade and Industry (published August 31, 2023). Includes B2B and B2C transactions in addition to C2C transactions.
    3. Source: “FY2021 E-Commerce Market Survey Report”, Ministry of Economy, Trade and Industry (published August 12, 2022). Includes B2B and B2C transactions in addition to C2C transactions.
    4. Source: Company materials; C2C and B2C GMV from January 2022 to December 2022

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  14.   
    14
    Japan Region—FY2024.6 Group Synergy Overview
    Japan Region
    Increased GMV as a
    result of higher ARPU
    Decreased payment
    processing fees
    Expanded use of credit
    services
    ● Aiming to create synergy with Marketplace and Fintech working together to enhance UX and carry
    out marketing
    Japan Region
    Marketplace Fintech
    MAU: over 23.5M
    GMV: approx. 1T JPY
    Identity-verified users: approx. 15M
    Mercards issued: over 2.5M
    Crypto trading accounts: over 1M
    Sales balance, points, data, MAU
    Japan Region profitability
    enhancements
    Mercard (loyalty program), credit,
    payment features, identity verification

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  15.   
    What Is Mercari?
    ● 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 3 billion
    *As of November 2022
    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
    user experience, with a transaction environment that
    uses an escrow system, where Mercari temporarily holds
    payments, and simple and affordable shipping options.
    16

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  16.   
    Mercari’s Strengths
    Mercari provides our many users with an easy-to-use,
    fun & engaging, and safe & secure marketplace.
    Safe &
    Secure
    Fun &
    Engaging
    For All
    Easy-to-Use
    17

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  17.   
    Mercari’s Strengths: Easy-to-Use

    18
    Escrow payment Mercari Shipping

    AI 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

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  18.   
    Simplified listing and communication features
    We simplify listing with features like AI Listing and Barcode Listing*, which use machine learning.
    We also provide plenty of communication features, such as desired price registration and stamps.
    *Barcode listing is available for books, music,
    games, cosmetics/perfumes, and consumer
    electrical appliances
    19
    Mercari’s Strengths: Easy-to-Use

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  19.   
    20
    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.
    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.
    Mercari’s Strengths: Easy-to-Use
    Convenient, safe, and secure shipping options
    We offer a wide range of shipping and delivery options so our users can choose the methods that are
    right for them.
    Yu Packet Post Mini
    This newly introduced anonymous shipping
    method costs only 160 yen (flat rate across the
    country, tax included), the lowest price of all
    YuYu Mercari Shipping options.

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  20.   
    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.
    The most popular category of items in 2014 was
    the Fashion category, which mainly consisted of
    items marketed toward women. However, as of
    2023, the Entertainment & Hobbies category has
    grown by 17%, taking the top spot with items such
    as books, games, and toys. Lifestyle changes
    triggered by the pandemic increased the
    popularity of those kinds of items that are primarily
    intended for indoor use. This trend has continued
    since.
    A diverse lineup of items
    from all categories
    21
    Mercari’s Strengths: Fun & Engaging for All
    Buying is like a treasure hunt

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  21.   
    Maintaining a customer service
    system
    Mercari’s customer service system operates all day,
    every day, ensuring users can enjoy a safe and
    secure experience. Mercari 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-day/
    24-hour
    support
    お問い合わせ
    22
    Mercari’s Strengths: Safe & Secure
    Detecting violations with AI
    Mercari 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.
    ×

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  22.   
    Mercari’s Strengths: Safe & Secure
    Cooperating with authorities
    Mercari 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 Mercari, but the industry as a whole
    safer and more secure by participating in organizations such as the
    Council for Intellectual Property Protection (CIPP), EC Business
    Association, Japan Cybercrime Control Center (JC3), and the National
    Shoplifting Prevention Organization (NSPO). The company also takes
    a proactive role in exchanging opinions and drawing up guidelines.
    23
    Inquiries &
    information
    Responses & reports
    Removes
    Arrests
    Criminals
    Law enforcement/
    Public institutions
    Mercari provides several identity authentication services,
    such as phone number authentication and 3D Secure
    2.0 authentication, to create a safe and secure
    marketplace. In April 2023, Mercari implemented a
    password-less biometric feature called Passkey to
    enhance security and convenience through the use of
    FIDO authentication.
    In January 2024, Mercari expanded the use of the
    Passkey biometric feature to include the sign-in process
    for all services.
    Enabling biometric sign-in

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  23.   
    Mercari’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 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.
    24

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  24.   
    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.
    25
    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.

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  25.   
    Future Growth
    26
    Large potential interest in listing
    36.1
    million
    People who want to list
    but haven’t done so yet*
    23.5
    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.
     
    3 billion
    November 27, 2022
    Million items

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  26.   
    27
    1. As of June 2023
    Future Business Development: Crossborder Expansion
    Crossborder sales began in 2019, promoting the creation of a circular economy that includes
    overseas users
    In collaboration with 50 crossborder e-commerce companies, items listed on Mercari are currently being
    purchased by users from over 110 countries and regions worldwide1. Anime and idol merchandise
    dominate the top three transaction categories, with C2C transactions enabling overseas users to
    purchase merchandise of their favorite character or celebrity.
    ■ Some of our crossborder EC
    business partners:

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  27.   
    28
    Target marketing
    Encourage visits to shops
    Analyze data
    Develop/sell solutions
    ● Purchase data
    ● Preference data
    (searches, views, likes, etc.)
    ● Behavior data
    (location, shipping, buying)
    ● Item trend data
    Integration
    Secondary
    distribution data
    Primary
    distribution data
    Future Business Development: Data Integration
    Creating new business opportunities by integrating primary distribution and
    secondary distribution
    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.

    In using data, Mercari will be careful with personal information and utilize data only with user consent.

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  28.   
    Under a concept of “sell with ease,” Mercari Shops is an
    e-commerce platform that allows users to establish their own
    online shop using just a smartphone and sell their products
    directly to consumers as a business.
    The platform was fully launched
    in October 2021.
    29
    What Is Mercari Shops?

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  29.   
    Issue 1
    Opening an online shop is difficult
    without tech knowledge or experience
    Common issues faced by business owners starting online shops
    Issue 2
    Many 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 common issues faced
    by 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 23.0 million MAU, removing
    the need to gather customers
    30

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  30.   
    Mercari Shops’ Strengths
    31
    1. From an internet survey by Appliv TOPICS (https;//mag.app-liv.jp/archive/142044)
    2. From RAGTAG on Mercari Shops Magazine (https://shops.mercari.com/magazine/posts/50047)
    No monthly or entry fees
    Large user base of over 23M
    monthly users
    Distinct user demographics
    compared to other malls
    Features tailored to businesses
    Mercari Shops uses a simple system where the only
    cost to shops is a fee when an item sells (10% of the
    item price). With no fixed costs, it’s easy for anyone
    to get started.
    Open an online store on Mercari Shops to sell your
    items on Mercari and reach approximately 23M
    monthly users without any advertising costs!
    Mercari Shops now supports crossborder sales, too.
    Besides listing items in just three steps, Mercari
    Shops offers many features not available to C2C
    Mercari accounts, including centralized inventory
    management through Next Engine, Cross Mall, and
    many other ASPs, batch CSV registration, and staff
    accounts.
    Large percentages of buyers are women and young
    demographics1, indicating user demographics
    distinct from other online malls2.
    A B2C marketplace where anyone can sell with ease

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  31.   
    33
    What Is Merpay?
    Merpay is a mobile payment service operated by
    Merpay, Inc., that can be used within the Mercari
    marketplace app.
    This service enables users to utilize their Mercari
    sales balance1, funds added to their Merpay
    balance from a bank account or ATM, or the
    BNPL (buy now, pay later) Merpay Smart
    Payments service to pay for purchases at
    physical stores and online with their smartphone.
    Merpay supports both iD contactless payments2
    and code payments and can be used at JCB
    merchants across Japan with Mercard, a credit
    card with a point-back rate that increases based
    on use of Mercari and Merpay.
    1. In order to use Mercari sales balance, users must configure certain settings or use their sales balance
    to purchase Mercari points.
    2. ”iD” is a registered trademark of NTT DOCOMO, INC.

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  32.   
    34
    Merpay’s Three Focus Areas
    Pay for everyday purchases all
    at once the following month
    Pay over several months at a
    fixed amount of your choice
    iD
    Code Payment
    Various payment methods available Various services that utilize unique credit based on behavior history
    such as usage history on Mercari
    Payment Credit Asset Management
    Hold your phone over
    a reader
    Scan a code Virtual Card
    Input a card
    number Borrow when needed and repay flexibly: interest
    rates fluctuate depending on the borrower's usage
    of Mercari
    クレジットカード
    Lump-Sum
    Payment
    Fixed-Amount
    Payment
    NEW
    Merpay Smart Money
    Merpay Smart Payments
    Credit Card
    Service that allows users to buy
    and sell bitcoin from within
    Mercari
    NEW

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  33.   
    Mercari Group’s “Circular Finance”
    35
    The addition of Merpay (money and credit) and Mercoin (cryptoassets) to Mercari’s item lifecycle creates a
    circular relationship between users’ items, money, and credit, facilitating the growth of “circular finance” that
    grants users greater freedom and flexibility. It provides users with a valuable, uniquely Mercari experience.
    Money
    Payment Credit
    Crypto-
    assets
    Money
    Sales
    Listing
    Aiming to achieve
    their dreams
    Bitcoin
    Money
    Mercard
    Transaction
    History
    Credit Information
    Value Circulation
    Goods

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  34.   
    Number of Merpay Users/Verified Users
    36
    (Million users)
    90.0%
    Identity
    Verification Rate
    Million users
    Million users
    1. As of December 31, 2023, the aggregated number of unique users (excludes users who have deleted their accounts) who had registered for Merpay Electronic Money, set up Virtual Card, applied for
    Mercard, opened an account for exchanging cryptoassets, or used Merpay QR Code Payments, Online Payments, or Merpay Smart Payments (lump-sum payment or fixed-amount payment), etc.

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  35.   
    Building a Primary-Secondary Distribution Cycle
    with Mercari and Merpay
    37
    Receives sales
    proceeds/adds
    money to 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

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  36.   
    Merpay Smart Payments—
    A Credit Service Based on “Trust”



    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.

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  37.   
    39
    We measure “trust” based not on who people are, but on what they have done. We
    determine whether a user will uphold their promise to repay based on their unique
    transaction data from Mercari. In this way, we can build trust, creating a new form of credit
    for the user.
    Merpay’s Definition of "Trust"
    Length of
    employment
    Address
    Income
    Occupation
    Family
    structure

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  38.   
    Visualization of Usage Status and Flexible Payment
    Methods
    Displays the amount of time until
    repayment is complete, as well as the
    monthly payment amount and fees
    Enables flexible payments
    + Can use Mercari sales balance
    + Can pay whenever you want
    + Can adjust the payment amount after
    purchase
    Visualizes usage status
    Allows users to create a payment
    schedule that reasonably fits with their
    lifestyle
    40

    View full-size slide

  39.   
    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.
    Merpay Smart Money—Small-Sum Loan Based on
    Mercari Usage
    Fluctuation
    Interest
    Borrowing limit

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  40.   
    42
    Significantly Increasing Stores Supporting Merpay Payment
    In November 2022, we began issuing the Mercard credit card. In just over one year from the date when all users became eligible to
    apply, we issued more than 2.5 million1 cards. Mercard allows users to make purchases at approximately 46 million JCB merchants
    worldwide2, on top of the stores that support code payments and iD payments.
    Code payment
    iD payment
    Mercard
    1. Number of cards issued as of January 2024 (just over one year starting from December 2022, the month of the full release of the service)
    2. Number of JCB merchants as of the end of September 2023. Mercard is a credit card shopping service.
    More than
    2.5M
    cards issued in
    just over 1 year

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  41.   
    Flexibly choose the timing
    and method of your
    payments
    43
    The Four Pillars of Mercard
    Complete the Mercard
    application from the Mercari
    app in as little as one minute
    Point 1
    Visualize and manage your
    Mercard usage right from
    the Mercari app
    Point 2
    Verified users
    15.15 million
    (As of Sep. 30, 2023)
    Point 3
    Benefit from a unique credit
    system that doesn’t rely only on
    conventional factors like
    age and occupation
    Point 4

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  42.   
    44
    Constant Point-Back Rewards System With
    Mercard
    In addition to the launch of Mercard, we have started offering point-back rewards to Mercard and
    Merpay Smart Payments deferred payment users. Using these services, users receive 1% back for
    purchases made at stores and a maximum of 4% for purchases made on Mercari. The point-back
    rate for purchases made on Mercari can be increased not just by making payments at stores, but by
    buying and selling items on Mercari.

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  43.   
    45
    Creating a marketplace where people can easily exchange value in all its forms
    Mercoin, Inc. was established on April 28, 2021, with the goal of
    planning and developing services related to cryptoassets and
    blockchain technologies.
    On June 17, 2022, Mercoin completed registration as a cryptocurrency
    exchange in accordance with the Payment Services Act. On March 9,
    2023, we released a service enabling bitcoin transactions using the
    regular Mercari app, enabling users to convert items they no longer
    need into future assets. In approximately seven months following the
    full release of the service (March 16, 2023), the number of users of this
    service surpassed 1 million.
    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).
    *The number of people who have opened an account to buy and sell bitcoin on Mercari
    Mercoin

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  44.   
    46
    Allowing Users to Buy and Sell Bitcoin Within the
    Mercari Marketplace

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  45.   
    47
    New Uses for Sales Balance & Points
    Source: Mercoin survey on cryptoassets (February 2023)
    Reasons for not
    holding cryptoassets
    Responses from 1,227 people who do not
    hold cryptoassets
    Note: Respondents were able to select
    multiple answers
    36.9%
    30.5%
    26.6%
    1
    2
    3
    Low stress and easy to start!
    It seems like a way to lose
    money
    I find it to be intimidating
    I don’t have the money to
    buy in

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  46.   
    48
    Making Cryptoassets Safe, Secure, and Easy for Anyone
    Allows Mercari sales balance
    and Merpay balance to be
    converted to bitcoin
    Enables entire
    process to be
    completed from
    within Mercari
    Provides high-quality
    Mercari security

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  47.   
    49
    メルコインについて

    View full-size slide

  48.   
    50
    Seven Months After Launching Service, Surpassed One Million Accounts;
    80% of Users Have No Experience With Cryptoassets

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  49.   
    51
    New Value Circulation Born From Synergy Between
    Mercari and Mercoin

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  50.   
    52
    Mercari’s Contribution to the Current State of the Japanese
    Cryptoasset Market
    Annual GMV:
    approx.
    1T
    JPY
    Mercari users
    Cumulative number
    of users:
    approx.
    48M
    Number of
    cryptoasset
    accounts:
    6.4M
    Increase in
    cryptoasset holders
    Notes:
    1. Number of cryptoasset accounts: According to the Japan Virtual and Crypto assets Exchange Association, Monthly Cryptoasset Transaction Data (December 2022)
    2. Cumulative number of users: This is the number of registered users who browsed our app or website at least once between July 2013 and October 2022 (excluding
    cases of account suspension).
    3. Annual GMV: Mercari’s total GMV for the period from January to December 2022.

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  51.   
    53
    Cryptoassets Added to Forms of Value Circulated on Mercari
    Sales balance
    Money added
    Credit
    Points
    Cryptoassets
    Buying bitcoin
    Mercard
    Online payments
    Code payments
    Buying on
    Mercari
    Incorporate all
    forms of value
    Use in many places

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  52. Mercari US
    54

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  53.   
    Mercari US
    Got stuff you don’t use?
    Sell or buy almost anything from home.
    55
    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.

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  54.   
    Looking Back on the US Business
    56
    Oct 2016
    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
    2023
    Apr 2023
    Launched Merchat
    AI, a new shopping
    assistant powered
    by ChatGPT

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  55.   
    57
    US Business in Numbers
    1. Aggregate transaction value after adjusting for cancellations
    2. Quarterly average number of users who browsed our service (app or web) at least once during a given month
    (Million users)
    (Million USD)
    GMV1/MAU2 Million users
    Million USD
    YoY
    -2%
    YoY
    -12%

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  56.   
    Positioning
    58
    Local pickup only
    Ship only
    Cross-category
    Category-specific
    ● Aiming 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
    Existing
    shipping options
    Enhanced
    local shipping

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  57.   
    Service Optimization
    59
    Optimizing the Experience for US Users
    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

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  58.   
    Future Business Development
    60
    ● 42% of Gen Z consumers prefer secondhand as their primary shopping method, which is far higher than any
    other generation1
    ● The percentage of Gen Z users who use major reuse sites is lower compared to users of other generations, so we
    will aim to acquire more users through a UX that focuses more on Gen Z
    Promote hassle-free selling, such as
    features to list multiple items at
    once
    Ease of use
    Aim to increase transaction frequency by
    building interest-based communities
    where users can interact based on their
    interests
    Community feature
    Proof of concept of
    face-to-face transactions
    Launched a proof of concept of a face-to-face
    transaction feature, which enables users to
    save on shipping costs and payment fees, in
    certain areas of Los Angeles, in response to
    the strong demand for face-to-face
    transactions in the US
    Medium-Term Objective:
    Engage Gen Z to establish recognition and reputation as "the easiest and safest selling app”
    1. Source: Mercari US, “Mercari 2023 Reuse Report”

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  59.   
      Company with Three Committees
    Board of Directors
    62
    Yamada Koizumi Shinoda Watanabe Kitagawa
    Eda Tochinoki Toyama Fukushima
    Executive Officers
    Yamada Aoyagi Eda Kawano John Tamonoki
    Tsunoda
    Governance Structure
    Decides on important
    business execution
    matters
    Chair
    Four directors
    Six indep. Outside Directors
    • Majority indep. Outside Directors
    • Three female directors (30%)
    Chair
    Chair
    Chair
    Nomination Committee
    Compensation Committee
    Audit Committee
    Decides on
    candidate for
    directors
    Decides on
    executive
    compensation
    Performs
    audits
    Execution
    Supervision
    Toyama
    Toyama
    Kitagawa
    Shinoda
    Shinoda Watanabe Yamada
    Yamada
    Fukushima
    Tsunoda Tochinoki
    At the 11th Annual General Meeting of
    Shareholders held on September 28, 2023,
    Mercari approved a revision of the company’s
    Articles of Incorporation, thereby
    transitioning to a Company with Three
    Committees.
    By separating the supervisory and executive
    functions of the company to clarify their
    roles, we have built a structure that supports
    the timely and resolute decision-making as
    well as assertive and sound risk-taking of our
    executive function, while strengthening the
    supervisory function of the Board of
    Directors.
    New
    Structure
    Transition from a company with company auditors to a Company with Three Committees

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  60.   
    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 Mercari, Inc. He also
    established the YAMADA Shintaro D&I Foundation in July 2021.
    Shintaro
    Yamada
    Profile
    Aug 2001
    Feb 2005
    Sep 2010
    Feb 2013
    Mar 2014
    Sep 2015
    Nov 2015
    Apr 2016
    Apr 2017
    Sep 2019
    Sep 2023
    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
    Director, Representative Executive Officer and CEO (current position)
    Director, Representative
    Executive Officer and
    CEO
    63

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  61.   
    After graduating from Waseda University, Fumiaki Koizumi joined Daiwa Securities
    SMBC, where he managed the IPOs of tech companies including mixi, Inc. and DeNA
    Co., Ltd.
    In 2006, he joined mixi, Inc. as Director, Executive Officer, and CFO, and supervised the
    Corporate Division. After leaving mixi in 2012, Koizumi supported a number of startup
    companies. In December 2013, he joined Mercari, Inc., where he assumed the role of
    Director in March 2014. He was appointed as President & COO in April 2017, and as
    Director, President in September 2019. He also assumed the role of CEO of Kashima
    Antlers F.C. Co., Ltd. in August 2019.
    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 64
    Leadership

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  62.   
    65
    Leadership (Executive Officer)
    Sayaka completed her pre-doctoral course (master’s degree) at the Graduate
    School of Science and Engineering from Keio University Graduate School. In
    April 2006, she joined Goldman Sachs Japan Co., Ltd. After joining the company,
    she was engaged in investment/loan projects that utilize their own funds, etc.,
    and was appointed as a Managing Director at the same company in 2017 based
    on her extensive financial knowledge outside of corporate finance. Outside of
    her work, she also serves as the Co-Chair of the Japan Women’s Network and
    leads the promotion of D&I. Sayaka joined Mercari, Inc. as CFO in January 2021.
    In January 2023, she assumed the position of Senior Vice President of Corporate
    and CFO. She has been in her current position of Director, Executive Officer,
    Senior Vice President of Corporate, CFO since September 2023.
    Sayaka
    Eda
    Profile
    Apr 2006
    2017
    Jan 2021
    July 2022
    Jan 2023
    Sep 2023
    Director, Executive Officer, Senior Vice
    President of Corporate, and Chief Financial
    Officer / Director of Merpay, Inc.
    Joined Goldman Sachs Japan Co., Ltd.
    Appointed Managing Director at Goldman Sachs Japan Co., Ltd.
    Joined Mercari Group as Chief Financial Officer/CFO of Merpay, Inc.
    Appointed VP of Corporate and CFO of Merpay, Inc.
    Appointed SVP of Corporate and CFO
    Director, Executive Officer, Senior Vice President of Corporate, and Chief
    Financial Officer / Director of Merpay, Inc. (current position)

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  63.   
    Leadership (Executive Officer)
    After graduating from Waseda University, Hirohisa joined GMO Cloud K.K., where he handled CS
    work, a server hosting-business, and the launch of new businesses. In 2010, he began working at
    pixiv Inc., where he was involved in business supervision, including system development,
    marketing, and growth, as COO. He was appointed representative director and CEO of
    animateLAB, Inc. in January 2016, starting its retail-focused IT business. Hirohisa joined Mercari
    as a Vice President in February 2017. During his career at Mercari, he has been involved in
    overseas recruitment and overseeing customer service operations for Mercari US, as well as
    overall customer service for the Japanese version of Mercari. In October 2018, Hirohisa assumed
    responsibility for business operations in the Japan region as CEO of Mercari Japan. Then, in
    January 2022, he was appointed to the role of Senior Vice President of Global Expansion. He
    assumed his current role as Executive Officer, Senior Vice President of Global Expansion in
    September 2023.
    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
    Sep 2023
    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
    Executive Officer, Senior Vice President of Global Expansion (current position)
    Executive Officer, Senior
    Vice President of Global
    Expansion
    66

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  64.   
    Leadership (Executive Officer)
    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 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, and assumed his current position in September 2023.
    John
    Lagerling

    Profile
    May 2002
    Nov 2006
    May 2009
    May 2010
    May 2014
    Oct 2014
    May 2016
    Jun 2017
    Jul 2017
    Sep 2017
    Sep 2020
    Jan 2022
    Sep 2023
    Executive Officer, 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)
    Executive Officer, Senior Vice President of Global Strategy / Chief Executive Officer of
    Mercari, Inc. (US) (current position)
    67

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  65.   
    Masato completed his master’s in the Graduate School of Interdisciplinary Information
    Studies at the University of Tokyo in 2004. After working at NTT Docomo, he began
    working as the Head of Partner Sales in the Enterprise Division at Google Japan in 2008.
    In 2014, he became the Head of Business Development and Sales at Square Japan, and
    in 2016, he became the Head of Apple Pay Merchant Business at Apple Japan. He joined
    Merpay as Chief Business Officer in April 2018, where he oversaw general business
    operations, such as credit design and merchant development. He was appointed
    Representative Director, Chief Executive Officer of Merpay in January 2022; Vice
    President, Chief Executive Officer (Fintech) in July 2022; and Mercari Vice President, Chief
    Executive Officer (Marketplace) in November 2023. In January 2024, he assumed the
    positions of Mercari Executive Officer, Senior Vice President of Japan Region and Chief
    Executive Officer (Marketplace).
    Profile
    Apr 2004
    Nov 2008
    Jul 2014
    Jan 2016
    Apr 2018
    Jan 2022
    Jul 2022
    Nov 2023
    Jan 2024
    Joined NTT Docomo Inc.
    Joined Google Japan Inc. as Head of Partner Sales
    Joined Square K. K. as Head of Business Development and Sales
    Joined Apple Japan, Inc. as Head of Apple Pay Merchant Business
    Joined Mercari as Chief Business Officer of Merpay, Inc.
    Appointed Representative Director, Chief Executive Officer of Merpay, Inc.
    Appointed Vice President, Chief Executive Officer (Fintech) of Mercari, Inc. /
    Director of Mercoin, Inc.
    Appointed Vice President, Chief Executive Officer (Marketplace) and Chief
    Executive Officer (Fintech) of Mercari, Inc. / Representative Director and CEO of
    Merpay, Inc. / Director of Mercoin, Inc. / Director of Souzoh, Inc.
    Appointed Executive Officer, Senior Vice President of Japan Region / Chief
    Executive Officer (Marketplace) / Director of Merpay, Inc. / Director of Mercoin,
    Inc. / Director of Souzoh, Inc. (current position)
    68
    Masato
    Yamamoto
    Executive Officer, Senior Vice President
    of Japan Region / Chief Executive Officer
    (Marketplace) / Director of Merpay, Inc. /
    Director of Mercoin, Inc. / Director of
    Souzoh, Inc.
    Leadership (Executive Officer)

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  66.   
    69
    Leadership (Executive Officer)
    After working in a joint investment fund between Livedoor's investment bank
    division, Goldman Sachs Securities, and SBI Holdings, Shuji Kawano joined
    Industrial Growth Platform, Inc. (IGPI), a strategy consulting company. After that, he
    started his own business. He was also head of Gunosy’s Management Strategy
    Office when the company listed. He joined Mercari in July 2018.
    In October 2019, he was appointed Vice President of Strategy, and became Senior
    Vice President of Strategy in September 2020. He assumed the role of Senior Vice
    President of Management Strategy in November 2021, and was appointed to his
    current role of Executive Officer, Senior Vice President of Management Strategy in
    September 2023.
    Shuji
    Kawano
    Profile
    May 2005
    Nov 2007
    Dec 2008
    Oct 2014
    July 2018
    Oct 2019
    Sep 2020
    Nov 2021
    Sep 2023
    Joined livedoor Co., Ltd.
    Joined SBI Capital Co., Ltd.
    Joined Industrial Growth Platform, Inc. (IGPI)
    Joined Gunosy Inc.
    Joined Mercari, Inc. as Vice President and CEO Office Head
    Appointed Vice President of Strategy
    Appointed Senior Vice President of Strategy
    Appointed Senior Vice President of Management Strategy
    Executive Officer, Senior Vice President of Management
    Strategy (current position)
    Executive Officer, Senior Vice President of
    Management Strategy

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  67.   
    Mercari has various systems in place to create an environment where all employees can feel free to take
    on Go Bold challenges.
    Our benefits system, Merci Box, was introduced in February 2016 in order to provide an environment where
    members can Go Bold to the fullest and give 100% both inside and outside of the office. We also provide a
    monetary gift to employees who return from childbirth/childcare leave, financial support for fertility
    treatment, financial support for non-certified daycare, and financial support for children who are ill, as well as
    life insurance for all employees.
    In May 2021, we also introduced two related financial support programs on a trial basis: one is financial
    support for egg freezing, and the other is financial support for early childcare.
    Extended support for
    childbirth, childcare,
    and nursing care leave
    Paid childcare and
    caregiving leaves
    Support for
    fertility
    treatments
    Financial support
    for daycare for
    sick children
    Financial support
    for non-certified
    daycare
    Support in
    times of need
    70
    Mercari as a Work Environment

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  68.   
    71
    ESG—Materiality Update
    ● Mercari defines our materiality as important topics that relate to creating value to contribute to resolving social and
    environmental issues through our business, and creating the management foundation necessary for continuous growth. In
    FY2023.6, we updated our materiality.
    tional and
    Management Foundations
    Supporting the Creation of Value
    (3) Creating a New User Experience Through Technology
    (4) Building Long-Term Public Trust
    (2) Creating a World That Circulates All Forms of Value
    (5) Unleashing the Potential in Diverse Talent Worldwide
    By creating opportunities for anyone to realize their dreams and contribute to society and the people
    around them, we will achieve a world that unleashes the potential in all people.
    We strive to be a planet-positive company that contributes to solving environmental issues through its
    business activities by realizing a society in which all forms of value—not just physical goods and
    money—circulate seamlessly.
    We utilize data, AI, and other innovative technologies to constantly evolve our products and create new user
    experiences through the seamless exchange of value.
    We fulfill our responsibilities as a public entity and build public trust by establishing a robust and highly
    transparent decision-making process, and through more effective corporate governance and thorough
    compliance.
    We contribute to the realization of healthy internet services around the world by achieving a safe, secure,
    and fair transaction environment, and also by educating and sharing information throughout the industry.
    We will aim to be a company that can continue to grow sustainably by creating an environment in which
    people from diverse backgrounds all around the world can reach their full potential.
    Social
    Impact
    Circulate all forms of value
    to unleash the potential in
    all people
    MISSON
    Organizational and
    Management Foundations
    Supporting the Creation of Value
    Business Value
    Created Through
    Our Products and
    Services
    (1) Empowerment of Individuals and Society
    By creating opportunities for anyone to realize their dreams and contribute to society and the people
    around them, we will achieve a world that unleashes the potential in all people.

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  69.   
    Inclusion & Diversity (I&D)
    Unconscious Bias
    Workshop

    72
    The Unconscious Bias Workshop is mandatory
    for managers at Mercari. It is designed to help
    participants understand unconscious bias
    (unconscious prejudice) and develop a habit of
    recognizing unconscious bias in daily life, with
    the ultimate goal of promoting IDI. (Materials
    available for free online)
    We entered into a school education
    partnership with Kamiyama Marugoto
    Technical High School (tentative name), a
    private technical high school preparing to open
    in April 2023, to promote I&D. Through this
    partnership, we will incorporate Mercari’s D&I
    expertise into school education.
    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

    Since 2018, Mercari has continued to promote inclusion and diversity (I&D) as an essential element of
    achieving our mission, aiming to create globally competitive teams that value individual diverse experiences
    and perspectives. In January 2021, we established the I&D Council, a cross-organization internal committee
    with CEO Shintaro Yamada as chairperson. In these ways, we work to promote I&D both inside and outside of
    Mercari Group.

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  70.   
    R&D Organization
    73
    Research for
    Design
    Development
    Deployment
    Disruption
    Mercari R4D was established by Mercari, Inc. in December
    2017 as a research and development organization that aims
    to implement its findings practically, as part of the world at
    large.
    R4D stands for Research and 4 D’s: Development, Design,
    Deployment, and Disruption. Our goal is to create new value
    through research and development designed to be
    deployed in our future society while introducing disruptive
    ideas and technologies.
    Under its mission of “pioneering the path toward
    undiscovered value,” R4D promotes a co-innovation
    approach to solving complex social issues by leveraging the
    power of science and technology, and also by going beyond
    the conventional boundaries of industry, academia, and
    nationality in order to realize a society where limited
    resources are circulated and all people can unleash their
    potential.
    Value exchange
    engineering
    Quantum information
    technology
    ELSI HCI
    AI Mobility Blockchain Communication
    research
    Fields of Research/Projects

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  71.   
    Sports Business
    On July 30, 2019, Mercari 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)
    74

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  72.   
    History
    Feb
    Jul
    Aug
    Nov
    2013
    Founded Kouzoh, Inc. 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.
    75
    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

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  73.   
    History
    76
    2018
    Feb
    Mar
    Apr
    May
    Jun
    Jul
    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’”
    Established Merlogi, Inc.
    Launched full rollout of Mercari Shops
    Joined forces with the six Pacific League baseball teams and Pacific
    League Marketing on “Pacific League Exciting Moments β” Collection
    NFTs
    Jan
    Apr
    Jul
    Aug
    Sep
    Oct
    Dec

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  74.   
    History
    2022
    Jan
    Jun
    Sep
    Oct
    Nov
    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
    Completed series A round investing in Beebs
    Launched the Mercard credit card
    2023
    Jan
    Feb
    Mar
    May
    Jun
    Jul
    Sep
    Oct
    Absorbed Merlogi, Inc.
    Unveiled a new Group mission on Mercari, Inc.’s 10th anniversary
    Started offering a service for trading bitcoin
    Established a team dedicated to generative AI/LLM
    Established the Recommerce Institute to research the new
    recommerce market
    Celebrated the Mercari marketplace app’s 10th anniversary
    Established our Basic Human Rights policy
    Published FY2023 Impact Report
    Announced transition to a Company with Three Committees and
    changes to executive structure
    Launched Mercari AI Assistant feature leveraging generative AI/LLM
    technology

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