JADE GROUP, Inc.
COMPANY INTRODUCTION※ This material is translated by AI technology

2024.8.1

Company overview
JADE GROUP, Inc.
Address: 30-13, Motoyoyogi, Shibuya, Tokyo
Establishment 2010.10.22
CEO: Yusuke Tanaka
Number of employees: 126
Listed market: TSE Growth

EC MallOperates EC malls: LOCONDO.jp, FASHION WALKER,BRANDELI, SPORTSWEBSHOPPERS, and waja

Platform
In addition to inventory centralization as a logistics
warehouse hub, we offer a wide range of services tocentralize data through DX

BrandBrand management business such as Reebok and MANGO.
Also responsible for store operations.
1Group Companies
Acquired March 2024

Acquired Oct 2022

Acquired Mar 2024

RBKJ Corp ※consolidated

Magaseek Corp ※consolidated

FASCINATE Co※consolidated

ECEC

EC

Comprehensive fashion EC mall with over
2,400 brands

Operation of the official Reebok online store

Selling high brand apparel domestically andinternationallyd fashionStore Operation

Fashion EC mall for d-point members

Management of Reebok directly-managed
storesEC Solution
Apparel brand official EC site management
supportFulfillment Business
Logistics support using our own distribution
centerWholesales※Domestic and cross-border EC

Store Operation
Directly managed stores in Shinsaibashi andKyoto
Acquired Jan 2024 (35％）

Wholesale sales to retailers

TCB Jeans & Co ※35%
Manufacturing
Kojima Jeans manufactured by artisans

Store and EC operation
Sold to fans in Japan and abroad throughstores and EC
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Announced M&A- Magaseek- BRANDELI- FASCINATE- TCB
Alliance with NTT
Docomo and Itochu

History
取扱⾼推移(JPY MM)35,00030,00025,000M&A- Misuzu- Mobacolle

20,000D2C
M&A - FW
New Warehouse

M&A
- SWS
- wajaM&A- Reebok

Large TVCM

15,000Mothers Listing
LOCOPOSLOCOCHOC
e-3PL

28,697
24,39810,00018,251

20,564

21,217FY21

FY2214,095
5,000
5,091

6,504

8,022

9,495

0
FY15

FY16

FY17

FY18

FY19

FY20

FY23

FY243

グループVISION

MAKE BRANDS BRIGHT〜Sparkle as JADE〜

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グループPOLICYFastFaith

Speedy and flexible movement

Earn trust internally and externally throughresults.

Fair

Fair, transparent and highly ethicalFun！

Enjoy everything in a positive way!

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Yusuke Tanaka, founder of JADE GROUP, first met with Zappos, the 1st shoe EC in the world, while he was studying MBA
course in the US. When he came back to Japan, he co-founded JADE GROUP in Japan from 2010 in order to expand the great
service with free shipping & return shipping service in Japan.
Before JADE GROUP, many companies couldnʼt start the similar service because the break-even point of shoe EC is too high;10 billion JPY ($100 Million). As expected, JADE GROUP had suffered from many financial crisis between 2010 and 2015, butbecame profitable in 2016 and went to Tokyo Growth market (IPO) in 2017.
What JADE GROUP has learned and realized is that JADE GROUP has to provide “innovational service” not only to customers
but to shops/brands in order to realize free and fun shopping.
Why? The reason is that in Japan, consignment contract is common, and therefore, JADE GROUP has to increase brandsʼ
inventory cycle in order to have more inventories in its warehouse. The solution of increasing the inventory cycle is “inventorysharing (inventory centralization)” not only among various EC malls but among EC mall, offline stores and wholesales.
Utilizing this structure, JADE GROUP has continued to grow and become a provider of many services such as REEBOK andMAGASEEK, and has also realized the sublimation of these services into something more attractive. JADE GROUP will continue
to provide innovative services for brands and a free and enjoyable shopping experience for customers, helping all stakeholders
to sparkle as JADE .

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CEO & founder: Yusuke Tanaka

2003: After graduation of Hitotsubashi university in Japan, joined McKinsey& Company Japan as a management consultant.
2007: Became Manager of retail and consumer packaged goods group atMcKinsey.
2009: Graduated fulltime MBA course at UC Berkeley (Haas School ofManagement) in the US.
2011: Co-founded JADE GROUP and became CEO from 2012.
2017: JADE GROUP went public at Tokyo Growth Market (IPO)7

BOARD of DIRECTORSIn addition to CEO Tanaka, JADE GROUP's Board of Directors consists of outside directors who are experts in the areas of law,
technology, finance, and social contribution activities, and they also form the Audit and Supervisory Committee. Under thisstructure, the JADE GROUP is strengthening its governance in a wide range of areas, not to mention its Business Continuity Plan(BCP), which covers a variety of crisis scenarios.
Satoshi Hirota
Opened HCA Law Office as a lawyer and became the representative lawyer. In addition to his legal practice, he has been engaged
in hands-on work for venture companies and experienced an IPO. Currently, he is active in a wide range of areas, including
serving as a corporate auditor for a listed company.
Tomoya Suzuki
As a venture capitalist for a domestic VC firm, Mr. Suzuki invested mainly in IT-related companies for more than 10 years and wasinvolved in many IPOs, including our company's. He is now an independent venture capitalist and co-founded Accord Ventures,Inc. and serves as an outside director of several companies.
Atsuko Ochiai
After working as an equity analyst at Nomura Research Institute, Atsuko Ochiai worked at Goldman Sachs in Tokyo, London, andHong Kong, where she was involved in bond rating advisory and credit risk. Currently works as a professional coach andcounselor.

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JADE GROUP has 3 businesses connected complementary and the ecosystem creates our own competitiveness.
Sharing inventories: Sell offline inventories at ECContents•High recognition as
free return shippingEC•
Many assortments ofladiesʼ shoes

Sharing infrastructure: Share logistic & IT
infrastructure and realize low-cost & high-quality
operation

2. Platform

1. EC

Only at Locondo: Customer canbuy the brand only at LOCONDO

Contents•
Omni store IT &logistic platform•Total solution thatcan realize perfect
DX thorough all
distribution channels

Best practice: Build success stories
and accelerate others to join

Omni channel & DX: Realize
high efficiency to the brand.

Branding: Enjoy priority status atLOCONDO

3.
BrandGrowth driven by the structure•In-house operation enables us torealize state of art, agile and thebest practice at marketing,inventory management andservice originality
OMO support•
Supporting creating EC site,
efficient inventory management
between EC and store (OMO) ,and professional operation to theenterprises who has lesscapability at EC or OMO
Smooth PMI•
Our full-line in-house platform forOMO/EC operation enables us torealize the smooth PMI (complete
M&A immediately) and efficient
operation (both at operation andfinancial) at post mergerContents•
Internal design & high-speed production.
•Marketing of SNS, especially YouTube91. EC MALL
In the EC mall business, the company operates its own mall as well as other companies' malls that open stores on Rakutenand Yahoo! We promote business expansion by maximizing two aspects of our business: "customer attraction" througheffective advertising and "product lineup" including category expansion
Own E-malls

Shoes &Fashion

Docomo users

Trend Fashion

Total Fashion

OutletBuyer

SoccerOther E-malls※ Regarding sales of the EC mall, In the case of purchased inventory, the selling price is recorded as sales, and in the case of consignment inventory, the selling price x
LOCONDO commission rate is recorded as sales.

102. PLATFORM
In addition to inventory centralization as a hub for logistics warehouses, the company provides a wide range of systems
and services to realize data centralization through DX (Digital Transformation). We are also promoting the introduction ofthe "ALL-IN-ONE Package," which will implement all of these services and realize a complete omni-strategy. We are proudof the overwhelming cost-effectiveness of the system because it is built in-house and shared with Locondo.
Brand Official EC Operation

EC

Inventory Storage& Logistics

core system

e-3PL

LoCORE

BOEM

Missing Item
Follow-up

In-store cash
register operations

LOCOCHOC

LOCOPOSStore※ Regarding sales of the PF, Service fees are recorded for BOEM, e-3PL, and LOCOCHOC.

113. BRAND
In the brand business, in addition to the agency business, the Spanish fast fashion "MANGO", the main business is thebrand operation business (EC, stores, wholesale) of Reebok Japan, which we acquired in October 2022.

productdevelopment✓ （only shoes）

EC operation✓

Storeoperation✓

Wholesales✓✓※ Regarding sales of the BRAND most of which are purchase type, In the case of purchased inventory, the selling price is recorded as sales, and in the caseof consignment inventory, the selling price x LOCONDO commission rate is recorded.

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JADE GROUP warehouse ‒ LOCOPORT ‒JADE GROUP's warehouses are leased (by landlord: GLP), but operated
entirely by JADE GROUP employees or part-timers.
There are two warehouses, both located in Yachiyo Midorigaoka, Chiba
Prefecture, and are used as an integrated warehouse because they are a
5-minute walk away from each other.
The new warehouses were completed in 2020 and 2021, and are of a new
type that is designed to withstand all kinds of natural disasters, including
fire and floods.
The warehouse will cover an area of approximately 34,000 tsubo (110,000m2), or about 2.4 times the size of the Tokyo Dome.
This huge warehouse is operated by approximately 500 logistics staff
using automated equipment and systems.

13Completely in-house IT development
Not only the WMS (Warehouse Management System) used in JADE GROUPwarehouses, but also JADE GROUP's EC system, management screens, andother services introduced in the PLATFORM business, etc., all IT systems
provided by JADE GROUP are 100% developed in-house by JADE GROUPengineers.
This is the reason why we can provide high quality, cost reduction, speedy, andflexible development for customer satisfaction.
Our professional engineers are ready to solve your various needs.

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Working environment for the employees
JADE GROUP employs approximately 150 people at its headquarters (Shibuyaku, Tokyo) and approximately 400 employees and part-timers at its warehouse.
In order to continue to provide the highest level of customer satisfaction, JADEGROUP invests heavily in employee and part time employee benefits.
Housing allowance, performance-based bonuses, free lunch (LOCOPORT), andstylish break rooms in both our headquarters and warehouse...
Our employees work together to ensure the highest level of satisfaction for ourcustomers and our stores.

LOCOPORT lunch room

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SDGs
The ground floor space of LOCOPORT III, completed in 2021 as part of theurban development project, is open to all Yachiyo residents as a communityspace.
Equipped with a kitchen (IH cooking heater) and other appliances, it is used
as a meeting space for neighborhood associations and as a venue forvarious lessons.
Furthermore, the warehouse is designed to be environmentally friendly withLED lighting, solar power generation, and other features, and is promoting
activities to protect the earth while blending in with the local community.

LOCOPORT
community space

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