Creating delight 
and brightness for
people through innovative business

At D-POPS GROUP, we understand a “Venture Ecosystem” to be a dynamic platform that enhances the growth and sustainability of a community of enterprises. United by a shared identity and philosophy, these companies continuously innovate to address critical social challenges through groundbreaking business models. We are committed to making this ideal a reality through daily strategic efforts and unwavering dedication.   Below is an expanded explanation of a Venture Ecosystem.   1. What is a “venture company”? In Japan, startup companies—whether in the early stages of seed financing or the late stages of major corporate development—are also known as venture companies. Kotobank, a Japanese online dictionary, contains the following definition:   During times of transition in industrial structures, the leading role of industry changes, new businesses that did not exist before are born in cutting-edge fields, and new markets are created. Companies that rapidly invent unique technologies and products according to the needs of such times are called “venture companies”.   To put it a little more broadly, if a culture of challenge permeates a company from the top executives to the employees, and if that company is tackling new areas with unique ideas and business models, it can be called a venture company. In addition, an enterprise that did not start up recently but continues to challenge itself with ever bolder undertakings can also be considered a venture company, no matter how large it may be. In this sense, any Japanese company can be called a venture company as long as it has the spirit of a startup.   With this viewpoint, we consider the consumer-to-consumer online marketplace Mercari (which has released new services one after another according to their value statement, “Go Bold”) and Rakuten Group (which launched Rakuten Mobile with completely new base station technology even after it had achieved significant growth) to be exemplary Japanese venture companies.   Internationally, companies like Alphabet and Meta are still brimming with venture spirit, as well.   2. What is senmitsu? In the real estate industry, it is said that only about three out of every thousand negotiations will successfully close a deal, and this concept is expressed in the Japanese business term senmitsu (literally translated, ‘thousand-three’). In the food industry, it is said that only three products out of a thousand will become an enduring staple in the marketplace, so the term senmitsu is used there, as well.   In the venture capital (VC) industry, the data from a case study on funding reveals that out of a thousand companies interviewed, 3% of those are considered for investment, one-third of that 3% actually receive funding, and then only 30% of those ventures successfully exit. Therefore, (1000) ✕ (0.03) ✕ (⅓) ✕ (0.3) = 0.3% = 3 out of 1000…in other words, senmitsu.   Thus, the probability of success for a venture company is extremely low.   However, the probability of success can be increased, depending on the following factors:   Continuing to strive with greater effort than anyone. Learning from and helping other colleagues in the same situation. Consulting and receiving support from senior managers and mentors. Learning from both successes and failures in starting new businesses.   3. What is an ecosystem? In ecology, the term “ecosystem” refers to a community of organisms and the environment that surrounds them as a somewhat closed system. When the organisms that exist in a certain area and the nonliving environment that surrounds them are considered together as one system that is closed to some extent, this is called an ecosystem. (Source: Wikipedia.org)   If we transpose this to the business world, we can say that it is a group of companies with a certain common identity and philosophy, regardless of whether or not they are physically gathered in a certain area.   Imagine a forest, which is composed of a variety of plants, the insects and small animals that carry those plants’ seeds, and the larger animals that prey on them. The forest is perpetuated and grows through the mutual interdependence of these animals and plants, which eventually decay and turn to soil, providing nutrition for future generations in an unending cycle.   Now, replace this metaphorical forest with a group of actual companies. When a community grows and sustains while mutually influencing other members, that is what we call a business ecosystem.   Now, what are the specifics of a business ecosystem?   4. Collaboration Companies in an ecosystem are not enemies or competitors who are constantly at each other’s throats. Rather, they are colleagues who have a good relationship and positively influence each other.   If an entrepreneur has a mentor or senior manager who can be consulted at any time, he or she will have exponentially more success than one who works alone without anyone to consult.   (3) Role of alumni As companies grow through friendly competition and mutual learning and support, it is only natural that some leaders will successfully exit through going public or through strategic acquisitions.   When these “alumni” (former leaders in the community) leave to pursue other opportunities, they may or may not choose to return to their original company in the future. Either way, because they are still united in philosophy and principles, they do not cease to be a part of the ecosystem. Rather, alumni remain involved in the community as lecturers in study sessions, as interim managers to help restructure companies that are struggling, and in other roles as they are invited.   (4) Rebirth and revival Suppose there is a company that unfortunately cannot avoid liquidation. However, among the employees of this company, there are many talented people who would be valuable anywhere. Perhaps the leader of this company was not well-suited for management, but was an incredibly capable lead engineer.   If these skilled employees are able to change roles and transfer to other companies in the ecosystem, they could very well make tremendous contributions there. Providing a platform for people in the ecosystem to continue to shine as brightly as possible by starting again, or opportunities for recovery—this is what truly characterizes an ecosystem.   7. What is a Venture Ecosystem? To synthesize all of the various aspects mentioned above, a Venture Ecosystem has the following defining features:   (1) Consisting of companies with an indomitable, entrepreneurial spirit (2) Members that learn from and help each other (3) Personnel united under a common philosophy and culture (4) Growth and renewal on an individual basis, leading to continuous growth as a whole (5) Birthing new startups from within, and expanding through acquisitions (6) The entire community standing together, with a united front, to face changes in the environment (7) A platform that supports the growth of the community   More comprehensively, a Venture Ecosystem can be described as: “A platform for growth and sustainability that supports a community of enterprises that are united by a common identity and philosophy and continue to take on the challenge of solving social issues through highly innovative business models.”   D-POPS GROUP and the companies participating in its Ecosystem will continue to learn from and support each other, striving daily to become a platform that is indispensable to society.   We hope this article helps you to understand the meaning of “Venture Ecosystem” in D-POPS GROUP’s long-term vision of developing a Venture Ecosystem that is essential to society.   Written by D-POPS GROUP Advisor Genta Sugihara

Our President and CEO Kazuhiro Goto interviewed Ichiro Fujisaki, who is a former Ambassador Extraordinary and Plenipotentiary of Japan to the United States. Advisor Fujisaki was appointed as an advisor to D-POPS GROUP in April 2023 to help realize a Venture Ecosystem. This article is based on the latter part of the interview. You can view Advisor Fujisaki’s profile here: https://d-pops-group.co.jp/en/company/board-member/ Read the first part of the interview here. Goto: Now, for the next question: you have experience serving as an outside director at major Japanese corporations like Nippon Steel and Itochu. How did working in the Ministry of Foreign Affairs feel different from working in the private sector? Were there any similarities? Fujisaki: One major difference I felt between the Ministry of Foreign Affairs and large corporations was that when making decisions at the Ministry, we always had to consider how things would look to someone from the outside—in other words, accountability. I felt this was different in the private sector. In a government office, you are constantly exposed to the media and the National Diet. Even the smallest mistake requires a public announcement. For example, if a tax office somewhere loses 300,000 yen and doesn’t report it, it would turn into a huge scandal, and they’d be accused of trying to cover it up. It’s the same with the police. On the other hand, if a company loses 300,000 yen but finds it right away, they simply remind employees to be more careful next time. Ultimately, it’s something that can be controlled by the company’s management. I feel like in the government, we spend too much energy on this kind of thing. Another difference is that the Ministry of Foreign Affairs was a much flatter organization compared to large corporations. Even younger employees were allowed to participate in high-level discussions and voice their opinions. In contrast, corporate hierarchies seem to be much stricter. Goto: I think so, too. Most companies in society follow a pyramid structure, so even if a young person works extremely hard or has exceptional ability, it still takes an incredibly long time to get promoted. That’s why I felt we needed to create more companies that offer young people real opportunities, or else there’ll be no future. That was one of the reasons I started my own company. Fujisaki: Exactly. That’s really important. Otherwise, young talent will just leave for opportunities overseas. Goto: Now, we’ve progressed even more from that point. Initially, we focused on building a company that gives young people opportunities, but now our goals have expanded to increasing the number of entrepreneurs in Japan and spreading a culture of taking on challenges and having a more open-mind. By doing so, we hope young people will have more options—whether it’s choosing where to work, what challenges to take on, or even starting their own business. I believe we need to create a society where entrepreneurship itself is celebrated, and that’s what I’m working hard to achieve. At this point, Ambassador Fujisaki, I’d like to ask you the following question. Given your experience negotiating with various countries during your time at the Ministry of Foreign Affairs, with regard to managing the balance of power when dealing with several major global players: in order to firmly maintain and enhance Japan’s presence on the world stage, how do you think Japan should balance its relationships with the United States, the EU, and other major powers such as those in the BRICS group? Fujisaki: When I recently spoke with a top executive at a major corporation, he remarked, “In light of the dealings in Ukraine, North Korea, and China over these past 10 years, shouldn’t we set aside our belief in the inherent goodness of people—especially as it relates to democracy and peace—and instead operate on the assumption that human nature is essentially bad?” I replied, “No, it’s both at the same time. Our official stance is that humanity is good, but behind the scenes, we always assume the opposite. The core of national security is preparing for the possibility that anyone might do anything.” Considering that Japan is neighbored by North Korea, Russia, and China, we have no choice but to depend on the United States for our security. However, that does not mean we must adopt the exact same policies as the US. Unlike the US, Japan has consistently maintained good relations with countries such as Cuba, Iran, and Myanmar, and even after the US pulled out, we continued with initiatives like the TPP [Trans-Pacific Partnership] and the Paris Agreement. We’re managing these relationships effectively without being overly vocal about it. The nations in the Global South and BRICS are by no means monolithic, so it’s important for us to build the best possible relationships with India, South Africa, Brazil, and others among them. When you travel abroad, you often hear that many people hold Japan in high regard and have a positive impression of it. So, I believe that, fundamentally, our current approach is working well. However, one area that requires caution is India. While India is often seen in a favorable light—partly because China is cast as the villain—it is, in reality, a very shrewd nation. Although I’ve only negotiated with India a few times, it turned out to be the most challenging negotiation partner I’ve ever encountered. Goto: In the serial articles you wrote for the Sankei Shimbun newspaper, you mentioned that Japanese people consider their nation to be somewhat unreliable, but at the same time, they think it is wonderful that in the past 70 years since the Great War, Japan has not entered into a single war. After reading that, I also thought, “Indeed, what a great accomplishment that is!” Well, here is the next question: we often talk about the Lost Thirty Years*. From a global perspective, why do you think Japan has fallen behind in terms of economic growth and development? I think the situation has changed significantly since the publication of American sociologist Ezra F. Vogel’s book Japan as Number One: Lessons for America. *Note: Japan experienced around 30 years of significant economic stagnation after the asset price bubble burst in 1990, known as “the Lost Decades”. Fujisaki: It was never really possible for Japan to become number one in the first place. We are a tiny country with no resources, yet 100 million people live here. With such limited land, we have to import considerable amounts of food and other resources, so becoming number one was never feasible. Since Vogel was my friend, it pains me to say this, but his book was essentially a strategy to boost sales through flattery. For a country with scarce natural resources like Japan, it is critical not to overreach. I don’t think it was good for us to completely abandon our industrial policies just because the US said so. Instead, we should have created something like Silicon Valley through government and business cooperation. On the other hand, I don’t think there’s anywhere as clean and comfortable as Japan. In terms of soft power, Japan is such an exceptional country that I refer to it as “A-Ka-Se-Ki-Rei” (initials of the Japanese words for ‘safety’, ‘security’, ‘cleanliness’, ‘discipline’, and ‘manners’). Although Japan’s declining population is usually seen as concerning, maybe this small country doesn’t really need 100 million people. After all, Japan has one-third of the US population squeezed into an area the size of California, and 80% of Japan is mountainous. Perhaps it wouldn’t be so bad if Japan’s population decreased somewhat. Having a domestic market such as the old automobile industry is not necessary. Rather, we should have been thinking about creating businesses regardless of the domestic market, like Taiwan’s TSMC or Finland’s Nokia. We should have developed industrial policies with this in mind. I think our nation’s current situation probably stems from our failure to further pursue startups and similar initiatives. Goto: For about the past five years or so, there has been quite the sudden, strong push to support startup companies. Both the government and large corporations are finally accelerating their investments in venture capital. It feels like we’re only now seriously pursuing what we should have started 30 years ago. One last question for you, Ambassador Fujisaki, as someone who worked with various American presidents during your time as Ambassador to the US: among all the American presidents and the state leaders of other countries that you’ve met, who left the deepest impression on you, and why? Fujisaki: First, President Bill Clinton had this speaking ability where even in a crowd of 400 people, everyone felt like he was talking directly to them. And what’s remarkable about him is that he was an extraordinary intellectual. He went to Oxford University as a Rhodes Scholar, a scholarship program that only about 50 top American students per year can use. However, I heard he hardly attended any classes. But here’s an interesting story I heard: when these 50 brilliant students gathered and discussed who among them would become America’s future leader, many of them said Clinton’s name. He never really studied, but he was capable of academic excellence. And more than that, I think it was a kind of personal charisma. The fact that a majority of those brilliant students chose Clinton shows his remarkable ability. Also, in terms of my personal experience, when former Prime Minister Obuchi passed away, I was Director-General of the North American Affairs Bureau at the Ministry of Foreign Affairs. At that time, Clinton came for Obuchi’s funeral. After the funeral, there was a reception at the Akasaka State Guest House, and as the Director-General, I was assigned to guide the American president. Since I was leading the way there, Clinton was hardly able to see more of me than my back, and we had minimal conversation. Four months later, Prime Minister Mori held the Okinawa Summit. Clinton was scheduled to give a speech at the Cornerstone of Peace. Actually, we weren’t sure if he could come because he was involved in Middle East peace negotiations at the time, but in the end, he managed to come and give a speech anyway. Afterward, people lined up to shake hands with Clinton. I was in the front row, but since I’d have the chance to talk with him again later, I moved to the back so that the local residents could meet him first. Eventually, Clinton got to me, and when he saw my face he immediately said, “Oh hey, you’re here!” Either he had an exceptional memory and was able to remember me from just being his guide in Tokyo four months earlier…or perhaps, given his famous charm, he was calling out to every fourth person or so, ha ha. Either is possible for someone with social graces like his. Meanwhile, President Barack Obama is definitely brilliant, but he seemed to feel the need to emphasize his intellectual capabilities…perhaps as a result of being a black person? Clinton, on the other hand, never displayed his intelligence. This was one difference I noticed about them. Goto: Conversely, perhaps it’s because he was already so capable that, as they say, “a wise hawk hides its talons.” Fujisaki: Yes, that’s probably it, although he’s also a white person. As for Obama, he’s very stylish, usually appearing with his shirt sleeves rolled up. But in reality, he has an incredibly sharp mind. Goto: Thank you very much for making time in your busy schedule today. I’ve gained a lot of knowledge and inspiration from talking with you, and I am determined to build a Venture Ecosystem for the future of Japanese society.     Afterword by Kazuhiro Goto, President and CEO of D-POPS GROUP Co., Ltd.: I had the distinct privilege of interviewing Mr. Fujisaki, who served in crucial diplomatic roles including Ambassador to the United States as well as the Permanent Mission of Japan’s Ambassador Extraordinary and Plenipotentiary to the International Organizations in Geneva. Through this interview, I received countless invaluable insights, experiences, and advice. I was so excited about the interview that I could hardly contain myself, especially the day before, and the questions I wanted to ask him were even floating through my dreams. He answered all my many questions sincerely, and his responses consistently resonated with principles of corporate management. Making decisions in the complex world of diplomacy and politics must be incredibly challenging. In business management, too, we’re constantly required to find the most appropriate solutions possible while dealing with the various matters in front of us. The experiences and advice Mr. Fujisaki shared will be valuable not only for myself and current leaders but also for future generations of leaders. In this interview, there were so many candid statements that we also had to omit quite a bit of content. In fact, the interview itself was about ten times longer than what appears here! Even now, Mr. Fujisaki holds important positions such as President of the America-Japan Society and Advisor (formerly Chairman) to the Nakasone Peace Institute. This was truly a priceless occasion, and I earnestly feel that his knowledge and experience should be passed along to the next generation for the sake of Japan’s future. In closing, I would like to express my heartfelt gratitude to Mr. Fujisaki one last time for giving me this precious opportunity to interview him.

Our President and CEO Kazuhiro Goto interviewed Ichiro Fujisaki, who is a former Ambassador Extraordinary and Plenipotentiary of Japan to the United States. Advisor Fujisaki was appointed as an advisor to D-POPS GROUP in April 2023 to help realize a Venture Ecosystem. This article is based on the first part of the interview. You can view Advisor Fujisaki’s profile here: https://d-pops-group.co.jp/en/company/board-member/   President Goto: Thank you for taking the time to have this discussion with me today. After reading your book Mada Ma Ni Au [It’s Not Too Late] and your serial articles “Portraits of Conversation” in the Sankei Shimbun newspaper, I’m newly impressed by the depth of your experience, knowledge, and insights as an ambassador. I included some questions about diplomacy and international relations, but I felt somewhat presumptuous asking questions based on my own shallow understanding, and it made me think business leaders should just focus on managing their businesses. While reading your serial articles, I was amazed by how deep and profound your interview responses were. Advisor Fujisaki: Could you give me an example? Goto: There were various points, but regarding your recent Sankei Shimbun series, your article about Deng Xiaoping’s famous strategy for China’s foreign relations, coined as “taoguang yanghui” [hide your strength, bide your time], particularly gave me food for thought. This year, we conducted a full-scale renewal of the D-POPS GROUP corporate website. While our individual group companies had corporate websites, our main site had remained minimal. As our company grew, we were mindful of where pressure might come from, so we kept our online presence understated rather than portraying our full scale. However, with our group now consisting of 20 companies—and nearly 50 if we include investment firms—we decided for the first time to prominently showcase our current activities on the website. Many people were surprised at how much we had expanded under the radar. Another of your points that resonated with me was how in Japan, there’s often talk about how Japan is weak when it comes to speaking up to the US, but indeed, given that we have North Korea, Russia, and China next door, perhaps it is better for Japan and the US to maintain a consistently close relationship after all. Fujisaki: That’s right. There’s no other country in the world quite like Japan in this regard. It’s different from Australia or the Philippines, and different from Britain or France too. And there is only one country that has explicitly stated it will protect Japan. Therefore, we simply cannot afford to be in conflict with the US. However, I do feel that Japan tends to be overly reserved. Even within the Ministry of Foreign Affairs, I advocated against excessive restraint, which sometimes led people to question why a US affairs officer would say such a thing. Goto: That makes sense. So, the best approach is to maintain a firm grip on relations with America on the surface, and then if there’s something you want to negotiate or discuss, you can have those conversations behind the scenes. Fujisaki: Exactly. And that’s probably the same with private companies or banks, isn’t it? Goto: Yes, that’s right. Now, while reading your interviews, I realized that the role of an ambassador, especially one to the US, requires immense personal credibility, trust, and a sense of reassurance. This brings me to our first question: You have held numerous high-ranking positions, all of which required strong leadership. Could you share your philosophy on leadership? Fujisaki: To be honest, I have never been at the very top. I wasn’t a company president, prime minister, or cabinet minister. Although I was a bureau director and councilor at the Ministry of Foreign Affairs, and while as ambassador I flew the Japanese flag, the ultimate decision-makers were in Tokyo—the prime minister and the other cabinet ministers. So, in that sense, I wasn’t truly “plenipotentiary” despite my title. Therefore, I’ll explain my thought process as a representative of such an organization. First of all, one thing is that you have to effectively utilize your team. This can be quite challenging in an embassy, as it comprises officials from the Ministry of Finance; the Ministry of Economy, Trade, and Industry; the Ministry of Agriculture, Forestry, and Fisheries; and more—not just the Ministry of Foreign Affairs. Since I didn’t have authority over personnel decisions, I had to find ways to unite a team that I didn’t personally select. To achieve this, I made a strict rule never to conduct discussions solely among Ministry of Foreign Affairs officials. Instead, I always included members from other ministries to foster open communication. And what’s crucial is bringing in the right people for the right positions as key personnel—for posts where I needed to make specific requests, I made sure to bring in people I could feel secure about. This is because within an organization, it’s also a battle of information. The decision-making process isn’t neatly structured like a pyramid. So I made sure to bring in people I could trust to prevent various information from bypassing me. Second, a great leader raises up the next generation. When I see even prominent leaders who don’t nurture successors and instead bring in outsiders when they leave, resulting in failure—well, I think that’s a terrible thing. Third, leaders must anticipate the future and act before others realize the need for action. Like you, President Goto, I’ve met people from various industries and have seen many things in order to develop my intuition. The word “intuition” might sound vague, but it’s about synthesizing information, experience, and networking to recognize emerging trends. A person is not a database, so just possessing knowledge itself is not good enough. Leaders need the ability to extract meaning from their knowledge in order to anticipate the future. Fourth, and this is important for any organization’s leader, is the ability to make decisions with good timing. Taking too long to decide can cause opportunities to slip away, while acting too hastily can lead to unnecessary risks. You have to cross at a yellow light, not a red light. The key is to decide what kind of signal you can cross at: if the light is green, everyone will cross, and your effort is wasted. Making a decision based on that discernment is essential. Finally, leaders must continuously review and refine their decisions. Being successful once doesn’t guarantee future success. Regular progress checks and adjustments are necessary. This probably varies depending on the person. Goto: I often use the term “human computer”, but I don’t mean someone who makes decisions casually with only the certain information, data, etc., inside one’s head. Rather, I use it to mean determining the best answer by utilizing a vast amount of information. Fujisaki: I really think so. That’s why there are people who are only good at memorizing data. They were very good at studying for exams, but they are not good at synthesizing data. If you ask such a person a question, they will say, “Chapter 1 has items 1 to 10. Chapter 2 has...” I’m not asking about that; I want to know what the answer is! In this way, some people have become too much like a library. Rather, as you were saying, it is important to not only acquire data, but also to pick it out and apply it effectively. I think intuition is something like that. Goto: The intrigue of management may lie precisely in that aspect. That might be what makes management so interesting. For instance, if there’s someone who is truly intelligent, possesses leadership qualities, or excels exceptionally in one area, no one can surpass that person. However, succeeding in business requires comprehensive ability—the culmination of all elements—so conversely, anyone with confidence in their overall capabilities has a chance. Fujisaki: You know, you don’t always have to be actively studying or trying to absorb information from books. Ideas often come to you suddenly while walking, taking a bath, or just spacing out. Of course, nothing will come to mind if you’re not thinking at all. But maybe it’s better to first build up a certain amount of knowledge, and then wait for insights to naturally emerge. Goto: That makes sense. When I first became a business owner and didn’t understand anything about management, I consumed an enormous amount of input. But now, I balance and regulate how much information I absorb. Okay, here’s my next question: as Ambassador to the United States and Ambassador to the Permanent Mission of Japan to International Organizations in Geneva, there must have been many situations requiring coordination and negotiation with individual nations. Could you tell us how you managed these situations? Please share any negotiation techniques or coordination methods that are unique to you. Fujisaki: In negotiations, as the leader, I prioritized presenting a unified voice. I conducted most negotiations as Deputy Minister for Foreign Affairs, and when I brought many people from ministries like METI and the Ministry of Agriculture for free trade agreement negotiations, I would tell them, “I’m the only one who should speak here, so don’t say anything.” In exchange, I made sure we took frequent breaks, and we would all consult together in the mornings and during lunch. In all of these general meetings, I would communicate the rule that I would be the only speaker during negotiations. After that, I would leave the sub-level and breakout meetings entirely to them and not attend those meetings myself. Another important point is building relationships with counterpart leaders. For the first breakfast meeting, I would go alone—without any assistants—to get a general feel for the other person. Also, when those leaders came to Japan, I felt it was important to build personal relationships by doing things like going out for drinks with just the two of us. This is probably the same in business, right? There’s definitely a difference between meeting with three people on each side versus one-on-one. Goto: That’s for sure! In fact, a whole lot of the things you’ve said in your responses could also be said about running a business. Let’s move onto the next question, then. How does one train and polish one’s humanity and social graces? Please share any advice you’d like to pass on to the next generation. Fujisaki: It isn’t false humility to say that I’m still inexperienced and have a long way to go. So, whenever I meet anyone, I try to show interest in them and avoid talking about myself from a position of superiority. For example, my father was very devoted to improving his human qualities—he tried various things and read many books about personal development. To be honest, I haven’t reached his level yet, so I continue to strive for that on a daily basis. My father had his own sense of aesthetics; he didn’t get caught up in trivial matters and never volunteered himself for things. His job as a Supreme Court Justice ended at age 70, and typically everyone becomes a lawyer after that. However, he didn’t pursue law at all. He just spent his time taking walks, watching TV, and reading Buddhist books—that was his style. I’m nowhere near that level…even now, I’m always busy doing things like going to school to teach classes. Goto: But you know, people who truly possess a depth of life experience don’t usually go around saying they’re working on their humanity. It’s something that develops naturally over time, and before you know it, you’ve built up remarkable human qualities.     In Part 2 of the interview, we cover: • The differences between large Japanese corporations and the Ministry of Foreign Affairs • Balancing power dynamics when dealing with multiple global superpowers • Insights on US presidents who left a lasting impression Take a look at Part 2 of the interview!

In June 2024, our company entered into a capital and business alliance with The Salons Japan Inc., which leases private salon studios for professional beauticians, and we have begun our journey together as partners in the Venture Ecosystem. ☆You can see the press release regarding this capital and business alliance with The Salons Japan Inc. on the following page: https://d-pops-group.co.jp/en/column/the-salons-japan/ On this occasion, we interviewed The Salons Japan Inc.’s CEO and founder Hidetoshi Shimizu and director Kenji Kuboshima about their founding story and hopes for “THE SALONS”, their company’s private salon studios for professional beauticians. 1. What inspired you to start the company? It all began when founding member Takahara told Shimizu, who was a salon owner at the time, about SOLA SALONS’ business model that had transformed the beauty industry across the United States. Shimizu, an exemplary beautician, had been friends with Takahara for a long time. When he heard about such a fascinating business model that didn’t exist in Japan, he immediately traveled with Takahara to Los Angeles to see it for himself, and upon returning to Japan, the two of them founded The Salons Japan. 2. Please briefly describe your company’s services. We lease fully private studio spaces, each equipped with a shampoo station, chair, and mirror. Beauty professionals can open their own salon in prime locations without large initial investments. We charge a monthly fee but no commission on sales, so professionals who work hard will see a direct increase in profits according to their efforts. Unlike shared salons or commission-based salons, THE SALONS supports beauty professionals in achieving true independence with minimal risk. 3. What sets you apart from similar companies? We were the first in Japan to launch the leasing of private beauty studio spaces—our company’s specialized business—and we have never operated any other services such as shared salons, etc. In other words, we dedicate all our company resources to the concept of “true independence for beauty professionals”. We fully support professionals who aim to graduate from THE SALONS and open their own street-front locations, and we believe this unwavering commitment is what distinguishes us from our competitors and represents our strength. 4. What was the biggest challenge since starting the business? Since the leasing of private beauty studio spaces was unprecedented in Japan, we struggled to get the property owners of our first location in Omotesando to understand our business model. 5. What do you most expect from your shareholders? Utilizing the assets and expertise of a company with such diverse business portfolios as D-POPS GROUP, we want to partner together as colleagues in the same boat to transform the beauty industry. 6. What is the best part about receiving investment from D-POPS GROUP? This investment was realized through the connection between Mr. Sugihara, who has now joined as a director, and our founding member Kuboshima. D-POPS GROUP, led by President Goto, has many group companies and members with various business experiences. We are grateful that they generously share their expertise with us, and we're truly glad to have found genuine partners who think together with us about what's necessary for corporate growth. 7. What aspects of realizing a Venture Ecosystem resonate with you? We founded The Salons Japan with the desire to transform the beauty industry, which faces many challenges, to become more worker-friendly. You could also say that our vision is to create an ecosystem for the beauty industry. Since we’re running a business, money is obviously important; however, we strongly resonated with D-POPS GROUP's powerful commitment to “creating a better society for startups”, which aligns with our founding philosophy.   8. How did you two founding members meet each other? We met at a nightclub in Roppongi when we were still in our 20s. Since then, we spent our youth together as friends. While we never imagined we would end up running a company together, the trust we built over many years has proven very valuable in managing the company. 9. What strengths do you see in each other? For Shimizu (who is still an active beauty professional), salon management, store operations, and beautician-related matters. For Kuboshima, IT and finances. Each of us has our own area of expertise, and by trusting each other, we can focus on our respective strengths. 10. What is your ideal vision for the company 10 years from now? In a beauty industry where professionals work more actively and energetically, we want to become the most trusted and reliable company among beauty professionals. 11. What are some issues you will have to face before seeing that future? The beauty industry still has too many challenges to list them all here. However, we believe that we will overcome these challenges by keeping our founding conviction—to put hairstylists first—etched clearly in the hearts of our company management.   12. Any closing comments you’d like to briefly share? Once again, we are proud to have become part of the D-POPS GROUP family and are very much looking forward to growing together in the future! We are also currently looking for new team members who want to join The Salons Japan and create the future with us!!   The Salons Japan Inc. Company President and CEO: Hidetoshi Shimizu Address: 2F Kid Ailack Building, 2-43-11 Matsubara, Setagaya-ku, Tokyo Established: November 30, 2018 Website: https://www.thesalons.co/

In July 2024, our company invested in Adora Inc., which develops and operates an AI-powered parental control app called "Kodomamo", and we've begun walking together as fellow members of the local “Venture Ecosystem”. ☆An article about this investment in Adora Inc. is linked here: https://d-pops-group.co.jp/en/column/adora/ Today, we interviewed Naoto Tomita, founding president and CEO of Adora Inc., about the untold story of the company's founding and his thoughts on Kodomamo, the parental control app they developed. 1. What was your motive for starting a company? The Aichi Prefectural Police consulted with Fujita Medical University, where I was working as a visiting faculty member, asking "Do you have any good ideas for using technology to prevent children from getting involved in crimes through social media?" This led to the creation of Kodomamo through collaboration between the Aichi Prefectural Police, Fujita Medical University, and our team. ☆Aichi Prefectural Police introduction of the Kodomamo app (Japanese only): https://www.pref.aichi.jp/police/anzen/shounenhikou/shounen/kodomamo2023.html 2. Please briefly introduce your service. Kodomamo is a parental control service that comprehensively addresses parents' concerns about their children's smartphone use through AI. Specifically, when installed on both the child's and parent's smartphones, it can detect dangerous chat conversations, limit screen time to prevent excessive use, and prevent walking while using a smartphone. Screenshot of the Kodomamo app website, showcasing its 80,000+ installations (at the time of publication) and its award-winning main features: pinpointing children’s locations, control over excessive usage of smartphones, and detection of dangerous chat conversations. 3. What makes you superior to similar companies? We excel in providing features that solve parents' pressing concerns but aren't available in existing parental control apps, such as detecting dangerous chat conversations, preventing smartphone use while walking, and detecting inappropriate selfies. 4. What has been the biggest challenge since starting the business? From the beginning (and even now), we have taken great pains to deeply understand the answer to the question, “What kind of user experience is truly needed?” For example, one of our target demographics is ‘mothers with middle school children’, but I don't personally belong to this group (which I actually see as an advantage as it allows for objective user observation without being trapped by “n=1 confirmation bias”). To address this, our team has put tremendous effort into gathering information, conducting interviews, and analyzing data to create a high-quality user experience. We've also worked hard to ensure privacy-focused design. For instance, children's chats and captured images are evaluated for risk by machine learning models locally on each individual device, ensuring privacy by not sending the original data to our servers.   5. What are you hoping to receive from shareholders the most? I most look forward to being introduced to experts, key persons, and companies in the industry. 6. What has been the best part of receiving investment from D-POPS GROUP? We've been able to meet with other member companies of D-POPS GROUP to promote Kodomamo through mobile phone retail stores, and we've received an incredible amount of support from people including CEO Hosoda and Mr. Ohashi of Advancer, and Mr. Sakamaki, the Sales Director of D-POPS, among others. Additionally, we've greatly benefited from industry insights provided by D-POPS GROUP's President Goto, and introductions to experts through the network of Mr. Sugihara, who serves as an advisor. ☆Advancer Inc. https://advancer.co.jp/ ☆D-POPS Corp. https://d-pops.co.jp/ 7. What aspects of the “Venture Ecosystem” vision resonate with you? When talking with people from the D-POPS GROUP, I often hear the phrase "for the ecosystem," and I can sense their genuine belief in working for the benefit of the entire startup community. While operating our business daily, I feel that solving complex social issues requires not just one company's achievements, but collaboration with various stakeholders including other companies, government agencies, and research institutions. I empathize with this approach and feel I need to learn from it.   A glimpse into the everyday lives of the Adora team, sharing their office space together. 8. What kind of company do you want Adora to be in 10 years? I want Adora to become a company that can solve large social issues on a global scale. 9. What challenges do you foresee overcoming in order to realize that future? After achieving PMF (Product-Market Fit) in Japan and South Korea, we want to focus primarily on growing in Asia next. 10. Any closing comments? I highly recommend accepting an investment from D-POPS GROUP!!   Adora Inc. Company President and CEO: Naoto Tomita Address: Setagaya Ward, Tokyo Established: July 2023 Kodomamo App Website: https://www.kodomamo.com/

The corporate mission of D-POPS GROUP Co., Ltd. (Shibuya, Tokyo; CEO: Kazuhiko Goto; referred to as “our group” from here on), is to multiply the number of growth companies (so-called “unicorn companies”) that will revolutionize society. In accordance with this, our group has made an investment in Adora Inc. (Setagaya, Tokyo; CEO: Naoto Tomita), the company responsible for developing and operating “Kodomamo”, an AI-based parental control app.   Background The Japanese government declared 2022 to be the "Year of Startup Creation" during its New Year’s press conference. Since 2017, our group has actively promoted the business strategies of mergers and acquisitions (M&A) and corporate venture capital (CVC), growing into a large-scale organization with 20 group companies and 25 investment companies (at the time of publishing). While the government has been promoting efforts to foster startups, our group has focused on creating the stage, environment, and platform to serve as fertile ground for those startups and venture companies to grow. "Kodomamo" is an AI-powered parental control app (available for iOS and Android) that addresses the top seven concerns parents have regarding their children's smartphone use. Our group operates around 50 mobile phone shops primarily in Japan’s Kanto region through our group’s founding company, D-POPS Corp., and provides staffing services to the telecommunications industry through our HR business segment. As a result of these operations, we have been paying close attention to the ongoing social controversy and discussion surrounding children's smartphone usage. By supporting Adora Inc., we aim to contribute to the further development of the telecommunications industry. We will also continue to support Adora Inc.’s growth by strengthening our business collaboration following this investment. Screenshot of the Kodomamo app website, showcasing its 70,000+ installations (at the time of publication) and its award-winning features: AI-powered detection and alerts for dangerous chat conversations, location notifications, sext blocking, prevention of smartphone use while walking, control over excessive usage of other apps, and protection against unauthorized uninstallation of the app.   Comment from Naoto Tomita, President and CEO of Adora Inc. During discussions with President Goto, Mr. Sugihara, and other executives and advisors of D-POPS GROUP, we not only received valuable advice based on industry insights from the telecommunications and IT sectors but also felt great alignment with their vision. I truly wanted to work with them. This partnership will allow us to strengthen our collaboration with career shops and other entities, helping spread the Kodomamo app across Japan and the world, and ensuring the safety of children on the internet globally.   Comment from Kazuhiro Goto, President and CEO of D-POPS GROUP Co., Ltd. We are delighted to have invested in Adora Inc., and to welcome a strong new partner into our “Venture Ecosystem”. We strongly support Adora’s vision of using AI-powered parental control apps to address societal issues such as the risks of children becoming victims in crimes or other harmful situations through smartphone use. Our group has faced the societal issues related to children’s smartphone use while expanding our business in the telecommunications and IT sectors. Through our venture ecosystem, we aim to harness synergies across various industries and continue to promote solutions to social problems using AI. Our vision of creating a Venture Ecosystem is to provide a stage and environment where startups can thrive, supporting their growth and contributing to society. Moving forward, we aim to grow alongside Adora and work toward increasing the company’s value. Comment from Sugihara Genta, Advisor to D-POPS GROUP Co., Ltd. With the spread of smartphones and social media, we have seen an increase in reports of incidents where children have been victimized. Having worked in the technology industry for many years, I am saddened to see the internet being used as a tool for slander, fraud, and bullying. I strongly resonate with Adora Inc.’s efforts to use AI technology to help families with children worldwide use smartphones safely, which is why I support their development of the Kodomamo app. At D-POPS GROUP, we are committed to creating a venture ecosystem where synergies naturally arise through investments themed around "Real World × People × Technology". From the moment I met Adora, I saw them as an ideal investment opportunity. Together with our group companies, we will tackle societal issues head-on. Company information Company Name: Adora Inc. Company President and CEO: Naoto Tomita Address: Setagaya Ward, Tokyo Established: July 2023 Kodomamo App Website: https://www.kodomamo.com/   ☆Interview with Naoto Tomita, president and CEO of Adora Inc., the company that is protecting children through AI https://d-pops-group.co.jp/en/column/adora-interview/