Creating delight 
and brightness for
people through innovative business

“All You Need to Do is Bring Your Suitcase”:Connecting Global Digital Nomads with Japan’s Real Estate ①What led to the founding of Sumii Inc.? Daniel:We saw the need firsthand when we were trying to rent serviced apartments in Tokyo. The process was opaque and difficult. Many of the options did not cater to discerning, global travellers and families. Thus, we decided to fill this gap by founding Sumii Inc. Our vision is: Give people freedom to live, work and play anywhere in the world. ②Please explain the relationship between the two of you. What are each of your roles and specialties? Daniel:We are college classmates and have remained very good friends for the last 25 years. I have known JX for over half my life! My background and experience has always been in the consumer internet space. I founded an e-commerce company and also a digital advertising company focused on helping interior design firms in Singapore and Malaysia. Therefore, my main role in Sumii Inc. is to handle marketing and branding. Jing Xiang (JX):My background is in finance management, while my passion is in real estate. I enjoy learning about all these different locations, the potential of every property, and the process of seeing it all come to fruition. ③What opportunity does Sumii Inc. see in Tokyo’s accommodation market? JX:We see an open space between renting a conventional apartment and staying in a hotel. When someone comes to Tokyo for a month or a few months, they often want a place where they can really settle in, whether on their own or with their partner or family. They want to enjoy the neighbourhood and feel at home, without having to commit to a long-term lease. For property owners, it’s an opportunity to reach people they might not attract through traditional leasing. Our role is to understand what those guests want and bring it to them through thoughtful design, international marketing, and pricing intelligence. When we get that right, we create homes people want to stay in and help owners achieve better rental performance. ④From the guest’s viewpoint, what are the key differences between the SUMII brand’s serviced apartments and common hotels or short-term rental services like Airbnb? Daniel:I believe we stand at the intersection of hospitality and Airbnb. We take the best of both. Our ‘rooms’ are much bigger than normal hotel rooms. This gives guests the luxury of space, which is important for a longer stay. SUMII offers a consistent brand experience across all our apartments, which is not something you find in an Airbnb. Next, Airbnb is banned in many of the 23 Tokyo wards, so we can offer much better locations in central Tokyo than what you can find on Airbnb. JX:Ultimately, we want guests to unpack, find their favourite neighbourhood spots, and feel like they really live in Tokyo—even if only for a few months. ⑤What are the key strengths or uniqueness of SUMII for guests, compared with similar services? Daniel:We are looking to attract a very specific audience and guest profile: the discerning global traveller. Thus, we have designed the entire experience of SUMII around this. SUMII apartments are beautifully designed, spacious, and in the best locations in Tokyo. We also have welcome gifts and community events that engage our guests. Our aim is to create an experience that guests will return to and enjoy, not just a soulless apartment to stay in. ⑥What kind of guests do you target? What are the demographics of your guests? Please introduce some information such as nationalities, professions, lifestyles. Daniel:The main group would be the discerning global traveller. They appreciate good design and lifestyle and are willing to spend money to be comfortable. Most of our guests are 35 to 50 years old. Right now, about 50% of our guests are from the USA, about 25% from Europe, and 25% from Asia and Australia. They are mostly well-travelled and sophisticated digital nomads or executives. ⑦Are there any current or planned services to turn frequent travelers to Japan into repeat customers of SUMII? Daniel:Repeat customers are so important to any business. I believe when you have repeat guests, you go from being a company to being a brand. There are two initiatives we have launched. First, SUMII Insider. This is a loyalty program for our returning guests. The perks mirror those of top tier hotels, including personalized welcome gifts like an Ikebana arrangement, flexible timings for checking in and out, and priority booking. Second, community events. We arrange these so that our guests can feel connected when they arrive in Tokyo. Many may not have friends and family here, so this is a good way for them to meet other guests and form a connection. ⑧Moving to a different perspective, what opportunities do property owners and developers have in the market? Daniel:I believe local property owners and developers in Japan have a great opportunity to tap into global interest in Japan. There might have been some resistance previously, perhaps because of differences in language or culture, but this is changing. SUMII hopes to be the bridge that will allow property owners to reach a discerning, global audience. ⑨How can SUMII help owners bring out the potential of their properties? Daniel:SUMII understands what these global travellers desire. By implementing great design, effective marketing and a strong community outreach, we believe we can help owners increase the value of their properties and the yields they can receive. ⑩What kinds of real estate partners would you like to work with? JX:We would like to work with property owners, developers, and investors who see monthly living as an opportunity to enhance their residential assets and want an operating partner to help realise it. That could look like repositioning apartments in an existing portfolio, shaping a new development from the planning stage, or acquiring properties together with a monthly living strategy in mind. What matters most is a shared willingness to build for the long term—to combine our partners’ real estate expertise with SUMII’s design, data intelligence, and operations, and grow together. ⑪How would a collaboration typically begin? Daniel:A collaboration would begin by researching and analyzing the building or asset. This is done with our proprietary AI-powered demand forecasting tool.  After this in-depth analysis, SUMII will be able to propose the best model to maximize the yield on this asset with a SUMII branded serviced apartment. SUMII handles the entire operation from end to end. This covers furnishing, marketing and branding, operations and reporting. ⑫What are the benefits of receiving investment from D-POPS GROUP? JX:In real estate, trust and reputation are fundamental to building lasting partnerships. D-POPS GROUP’s investment is a meaningful vote of confidence in SUMII’s vision and our ability to execute. Their backing strengthens our credibility as we build relationships with property owners, developers, and real estate partners. Daniel:Tremendous support! More so than just funds to grow the business, I truly appreciate the support and wisdom of the team at D-POPS GROUP.  They have opened many doors for a new startup like SUMII. ⑬Which aspects of our “Venture Ecosystem” vision do you resonate with most? Daniel:Firstly and most importantly, it would be people! President Goto and the head of their CVC team, Mr. Sugihara, believe in SUMII and in the entrepreneurs running the business. They are allies, not just investors. Secondly, I love their value of “making the impossible possible”. That’s what entrepreneurship is all about…succeeding and making your vision come to life against all odds. ※What is a "Venture Ecosystem"? ⑭What is your ideal vision for the company in 10 years, and what challenges lie ahead? Daniel:Giving people the freedom to live, work and play easily in Japan without the hassle of finding a place to stay. I believe we will grow to more than 5000 apartments in Japan in 10 years. However, what I want to hear from our guests is “SUMII made my stay in Japan wonderful and helped me to experience Japan in a way I will never forget.” If we have enough guests who say this, I would say we have succeeded. ⑮What do you both find attractive about Japan? Daniel:Tokyo is my favourite city in the world, and Japan my favourite country to visit. Besides the scenery and cuisine, I would say it is the culture of never-ending improvement that Japan has. There’s a great attention to detail and a desire to seek perfection in all aspects, even if you might not reach it. That, to me, is what sets Japan apart.  JX:There’s a calm rhythm to everyday life in Japan, but I find a lot of energy in it too—in the dedication people bring to their work and the personality they put into the details. ⑯Lastly, what would you like to say to potential guests looking to stay in Japan for the long term? Daniel:SUMII in Japanese can be translated as ‘Good Living’. SUMII is here to provide you with a warm and welcoming environment as you embark on your adventure in Japan, be it for work or play. As we say in the company: All you need to do is bring your suitcase, and we will take care of the rest! ⑰What would you like to say to potential real estate partners? JX:We see a real opportunity to use our platform’s data intelligence to enhance the value and performance of our partners’ residential assets. Operating across more than 15 core Tokyo locations gives us first-hand insight into neighbourhood and submarket demand; what residents look for, what they are willing to pay, and how demand changes over time. Working with our partners, we can turn that knowledge into better decisions on property positioning, design, and pricing—and ultimately, stronger rental performance. We want to build together, prove the results through actual operations, and scale from there. Sumii Inc. Company President and CEO: Daniel LimCo-Founder: Jing Xiang LinAddress: #1019 City Tower Ginza Higashi, 2-11-1 Minato, Chuo-ku, TokyoEstablished: August 2024Website: https://www.livesumii.com/Instagram: https://www.instagram.com/livesumii/

Hello, this is Kazuhiro Maekawa from techbeans inc. On November 27, 2025, we stood at our booth at the DXPO exhibition. It was the first exhibition where all three companies—techbeans inc., atmark Solutions Co., Ltd., and idealump Co., Ltd—exhibited together. To be honest, we felt good about it, but the number of companies we met over the two days was only about half of our target, and not a single one of those encounters led to any business in the end. Fast forward nine months to August 2026 at Tokyo Big Sight. Sales and non-engineering members called out to people passing by the booth, while engineers handled the technical discussions with those who stopped. Over these two days, by dividing roles across the companies, the number of businesses we connected with significantly surpassed our previous attempt, and the number of companies moving on to business negotiations surged. techbeans, atmark Solutions, and idealump: in my previous article, [Venture Ecosystem Case Study] The Power of Three Arrows, I previously wrote about how these three IT company members of D-POPS GROUP formed the development alliance “One Tech World” as three arrows bundled together. One year has passed since then. What happened to the four challenges we outlined last time? I’d like to reflect on this past year of operating as a united front, sharing both our successes and our setbacks. To get straight to the point, just bringing three companies together wasn’t enough. Each has its own management policies and internal circumstances, so the real challenge lay in figuring out exactly how to bundle the arrows. Creating synergy was no easy task. So, how did we tackle this? Let me walk you through, aligning with the four challenges we established in our previous article. 1. The Results: What Happened with Our Four Challenges Accelerating Development with AI We held regular meetings with the development leaders of all three companies, bringing our AI knowledge to the table for ongoing discussions. We developed design document templates, prototyped diagnostic tools to measure AI utilization, and created systems to visualize how AI coding tools are being used. Each company also kept moving forward on their own in various ways, such as by appointing AI evangelists, distributing tools to all engineers, and providing premium AI plans to members developing upstream processes. However, rolling out AI-driven development methods to all engineers on the ground across the three companies was a series of trial and error. AI keeps evolving day after day, month after month. A top-down approach dictating the best way to use it would become outdated in just three months, while the frontline engineers were already utilizing newer methods. Furthermore, there were differences in perspective among the companies. Therefore, instead of forcing a standard operating procedure from the top, we institutionalized a bottom-up approach where all members bring the knowledge and practices they pick up from working on the ground, and share it. We asked the people actively using AI in their projects to present their everyday workflows just as they are and openly exchange opinions. On November 13, we will host an “AI Sharing Session” where we’ll hear from two currently dispatched members from each of our three companies. It’ll be an opportunity for senior, mid-level, and junior staff—not executives—to learn how peers at their own level are using these tools. When executives speak, it often ends with people thinking, “Well, only people like them can do that,” and it’s difficult for them to relate. Instead, we want an environment where rather than searching for a single “best” answer, everyone increases their know-how both by figuring it out themselves, and also by refining their skills through listening to others in the group. This process results in building a shared understanding of our goals. Driving Inbound Traffic Through IdeaLamp’s Creativity In August 2026, we launched a cross-company web development service on a website called “Web Dev Navi”. Over a dozen engineers from our three companies are featured with their names and faces, and the site highlights a free prototyping service called “Zero Start”. idealump handled the design, atmark Solutions took care of the implementation, and techbeans oversaw the overall direction. We are working on improving our response to the inquiries this site generates. [Web Dev Navi] (website in Japanese only) Web Dev Navi provides free consultations with skilled, senior developers. They promise not to push anyone to pay for a project and not to dishonestly claim they can do something that they really can’t. Tackling Major Projects with a Streamlined Production System In July of this year, the representatives of all three companies formed a united front to handle negotiations with a major manufacturer. We have progressed to signing a non-disclosure agreement and are currently in the detailed analysis phase. In another instance, a company handling M&A in the IT sector praised our very structure, appreciating that they could entrust everything to us as a unified entity, from infrastructure and applications to upstream processes. We are making steady progress, but there are still many hurdles to overcome. The real breakthrough is yet to come. Bringing in Partner Companies from Outside the Group In February 2026, we welcomed partners like AmpTech and Beekle, who were willing to sign non-disclosure agreements with all three of our companies. We have set up exhibitions alongside AmpTech twice, and now we’ve asked them to handle the DX projects that are landed by One Tech World. Beekle not only introduces projects to us but also shares their deep AI expertise, and we are currently creating a space for us to exchange knowledge on a regular basis. This is one example where we can say we successfully met the challenge. Let’s take a quick look at the numbers behind what we generated over this past year:・We connected with a total of 126 companies between the two exhibitions. We moved forward to business negotiations with about 25 of them, and just before I finished writing this article, we secured our first order from one of those companies.・We launched a cross-company website featuring the names and faces of over a dozen engineers.・With the addition of partners outside the group, our internal collaborative projects increased from our previous benchmark (20 or more projects) to 40–50 projects annually.・Furthermore, among the projects secured by the three companies, continuous monthly contracts grew by approximately 1.5 times on a monthly recurring basis from spring to autumn. Diligently tracking these quantitative metrics is crucial. 2. The Source of Our Projects Naturally, simply holding a joint exhibition wasn’t a magic wand for easily securing contracts. So, where did those contracts come from? They didn’t come from attending the exhibition, but rather from increasing our ability to take on projects as a three-company team. One of techbeans’ long-standing clients is a company that supports e-commerce (EC) web development. We’ve been receiving a stream of EC development contracts from them. Truthfully, techbeans wouldn’t be able to handle that volume alone. So, we proposed a solution together with idealump and successfully secured the order. Today, idealump handles everything from construction to maintenance. Even if it comes through one company, the company best suited for the task takes the lead. The fundamental model of our alliance has transitioned from a hopeful dream into actual workflows. A year in, a natural rhythm has taken shape: atmark Solutions handles infrastructure and maintenance through monthly contracts, while idealump takes on EC development on a project-by-project basis. Here is another example. This autumn, we completed a DX project where a business consulting firm visualized the workflow, and our alliance partner AmpTech handled the development. The prime contractor gave us phenomenal feedback, saying it was extremely good. Our style is to visualize the end goal, form a consensus, and then build small while confirming each step. For us, the best possible response would be for people to say, “One Tech World is the go-to for proofs of concept.” And this is the most significant change over the past year: we have shifted from hunting down individual companies at exhibitions to establishing a continuous influx of projects. We formed sales partnerships with business consulting firms and EC development support companies, allowing One Tech World to take on the projects they generate. The consulting firm receives about 10 inquiries a month, with development kicking off a few months after they visualize the project. Instead of chasing one-off orders, our very entry point is transforming into a system where the three companies continuously absorb incoming project flows. We expect this to gain serious momentum by early 2027. In D-POPS GROUP’s article “Venture Ecosystem: A Platform for Growth and Sustainability”, we see that “pioneering customers” and “industrial cooperation” are key elements of collaboration. Over this past year, these are the two areas where we have consistently delivered concrete results. 3. What Changed Through Group Collaboration From techbeans’ perspective, the transformation is very apparent: we are now able to sit at negotiation tables that we could never have reached alone. When you combine idealump’s UI/UX expertise with the infrastructure capabilities of atmark Solutions, an AWS partner, the depth of our proposals is completely different. The only reason we could confidently enter negotiations with a major manufacturer alongside all three company representatives, or jointly propose in-house development support for a major retail chain with atmark Solutions, is precisely because of this combined strength. There is one more thing. When techbeans was short on hands for a large-scale project, engineers from the other two companies stepped in to help. We can support each other when resources are tight. This was the benefit from our group collaboration that I personally felt most strongly. So, what role does techbeans play? What we are doing now is handling everything from defining requirements to developing business systems, while consistently building up development efficiency and quality improvements using AI across our daily projects. We analyze what each client wants, determine what to entrust to AI, decide what humans need to design, and establish where to insert reviews. I believe techbeans’ role among the three companies is to establish this workflow as the standard for One Tech World, and to lead the way in raising up forward-deployed engineers (FDEs), which I will explain in Section 4. atmark Solutions’ infrastructure and security capabilities serve as an important foundation for our joint proposals. Having a company on the same team that can be trusted with everything from cloud design to operations completely changes the level of assurance our clients feel. idealump’s President Miyahara reflected on this past year as follows: “We are now able to offer one-stop proposals that include areas like core system integration and infrastructure—areas where our proposal scope was previously limited on our own. Particularly in proposals for e-commerce website renewals, AX (AI Transformation), and DX support, collaborating with each company right from the proposal stage has led directly to orders and highly viable pitches. Combining the technologies of our three companies this past year has truly increased our likelihood of winning contracts.” 4. Where We Stumbled Not Adequately Pursuing Prospective Clients Regarding the companies we met at our first exhibition, we simply couldn’t follow up on every single one. Some projects couldn’t move forward due to budget mismatches, while in other cases, we simply stopped receiving replies. However, in order to properly chase those leads, we simply didn’t have the manpower. For the second exhibition, we decided on just one rule: if we send two emails and get no response, we call them. That’s it. A solid 38.5% of the companies we called moved forward to business negotiations. And for the record, not once did anyone get angry at us. Ultimately, one of those negotiations turned into our very first order from an exhibition right at the end of One Tech World’s first year together. For anyone coming from a sales background, this is probably elementary, but we all work at systems companies, and hardly any of us had accumulated any deep sales knowledge. So, for that precise reason, we documented our actions in standard operating procedures, rolled them out as a shared method across all exhibiting companies, and applied them consistently to every lead. The true value lies in taking this sales model we built from scratch and making it an asset of the alliance, rather than an asset of any single company. Starting with the next exhibition in November, we will operate using this exact method. How to Build a Track Record Without a Track Record This happened when we pitched to an IT company within a major development conglomerate: they acknowledged our technical capabilities, but we didn’t end up landing the contract. Why? They told us, “You lack a track record of delivering results as a unified team.” In another project for a listed company group, the decision-maker’s anxiety surrounding AI-driven development was a contributing factor in losing the deal. It is frustrating, but the takeaways are crystal clear. If we are going to tout our ability to handle large-scale projects, we first need to build a track record as a three-company team on mid-scale projects. Furthermore, when it comes to AI, we cannot just say, “We work fast.” We have to clearly convey that while man-hours are reduced, documentation and testing remain thorough, preventing operations from becoming overly dependent on specific individuals. Only when we present that sense of security as a package deal will decision-makers agree to hire us. Fighting Fragmented Battles This was the most painful issue. All three companies were busy running their own individual projects without bothering to find out which members in the neighboring companies were available. We were supposed to be bundled together, yet we remained scattered. The one who gave us the push we needed was D-POPS GROUP’s Managing Executive Officer Watanabe. “Because you aren’t visualizing, each company ends up fighting your battles alone.” Inspired by these words, we took the leap to visualize our resources and established the rule that any leads generated through the exhibition belong jointly to our alliance. We were also greatly aided by Officer Watanabe’s advice, “It doesn’t matter if it’s small, just start.” Following those words, we built the framework ourselves. While it might seem like stating the obvious, we realized that pushing forward earnestly, steadily, and persistently is more important than anything else. Just creating tools by itself is an empty process. It is equally critical to assign a dedicated person to drive it forward and to hold regular meetings, even if time is scarce. We are now working to systematize these elements as a cohesive whole. “Knowing the Client” is Also Part of an Engineer’s Job We learned one more thing from the high praise we received on the DX project mentioned earlier. Client satisfaction is not determined solely by the quality of the final deliverable. It is the attitude of immersing oneself in the client’s challenges and business, stacking up mutual understanding and thorough communication, and tackling those issues together with the client. This is the differentiator that dictates the final evaluation. “Knowing the client.” It is the absolute bedrock of business. People often think this is strictly the realm of sales, but we believe it’s a skill that engineering professionals must also master. Code written without knowing the client and code written with a deep understanding of the client yield totally different levels of quality, even under the exact same specifications. We want our standard of quality to be the product of our technical capability multiplied by our ability to understand the client’s needs. Engineers who really dive into the project with their clients and provide hands-on support from discovering problems right through to reaching the solution are known overseas as “forward-deployed engineers” (FDEs). This concept is starting to become more commonplace in Japanese companies, as well. We are making it one of One Tech World’s core policies to cultivate FDEs in our companies. 5. How Far Have We Come Within the Venture Ecosystem? The earlier-mentioned article about our Venture Ecosystem lists collaboration (pioneering customers, industrial cooperation, personnel exchange, and generating new business) and mutual learning and support (study groups, lending and transfers, and joint recruiting activities) as foundational elements supporting the Ecosystem. As I’ve described so far, pioneering customers and industrial cooperation have begun to materialize with real projects. Personnel exchange is also gradually taking shape in the form of jointly running exhibition booths and engineers participating in projects across companies. In terms of generating new business, initiatives like Web Dev Navi, Zero Start, and our system for integrating the skill sheets of employees across our three companies have started to take off. On the other hand, we are still laying the groundwork for mutual learning and support. Our study groups are only starting to grow from simple knowledge sharing among development leaders to sharing sessions where frontline members take the stage. As for lending, transfers, and joint recruiting activities, we will figure out how to utilize those cross-company human resources moving forward. The fact that we achieved some things and have yet to achieve others is a perfect reflection of our first year together. 6. Next: Bundling Our Arrows Together Even More Tightly We have four objectives for the coming year. First, to raise up FDEs by putting together an ability to master AI with an ability to know the client. We won’t let November’s AI Sharing Session end as a one-off event; we will continue it as a forum for bringing real-world applications to the table. By doing so, we will forge a shared understanding across the three companies while multiplying the number of engineers who can dive into client challenges and provide end-to-end support until a resolution is reached. Second, to utilize cross-company talent. Implementing, visualizing, and sharing human resources has been a challenge since One Tech World was formed. Using a clear picture of our operational capacity as a starting point, we will secure projects as a team and proactively seek out collaborative efforts where engineers from all three companies operate seamlessly across corporate borders. Third, to build a solid track record as a three-company team. To break out of the awkward situation of not being able to build a track record because we lack a track record, we will initiate joint proposals and form teams across the three companies. The major manufacturer project currently underway will serve as a starting point for this. Fourth, to increase the number of companies we can serve as much as possible. It took a full year to finally land a single contract from our exhibitions. We expect Web Dev Navi to generate some inquiries, and we will enter the exhibitions in November 2026 and January 2027 armed with the sales framework we built from the ground up. And beyond that, we want to become the epicenter of IT synergy within D-POPS GROUP. We want to take this framework, where three companies offer and fulfill an all-inclusive job proposal together, and make it into the first case study for the entire group. That is our genuine ambition. idealump’s President Miyahara comments, “I have high expectations for a structure where joint proposals—multiplying the strengths of our three companies—operate as a designed mechanism, rather than just by coincidence. As the leader in UI/UX and DX implementation, idealump aims to drive the creation of cross-group success stories.” I also believe intentionally operating as a system, rather than just by chance, will be the essential point of the coming year. In my previous article about One Tech World, I said we chose to bundle together. I believe this past year was not a year of increasing the number of our arrows, but rather a year of bundling the arrows we had. The arrows didn’t break, but I honestly feel our bundling technique is still a bit loose. Within the D-POPS GROUP mission of “producing growth ventures that transform society,” One Tech World will play a vital role as a platform where these three companies can grow together while actively learning together and supporting each other. We won’t let the concept of a Venture Ecosystem remain only words; we will give it shape with actual projects and real work. I believe that is our role. In the coming year, just how far can we aim with these bundled arrows? We will show the answer through the concrete results of our work. That is all for now. I will share our results again next year. techbeans inc.CEO Kazuhiro Maekawa

At D-POPS GROUP, our mission is to “continuously produce growth ventures (i.e., unicorn companies) that transform society”. By producing a large number of high-growth startups, we hope to increase the number of companies that can contribute to society and build a better world. On August 18, 2026, we donated one million yen to a child psychological treatment facility affected by the Kumamoto earthquakes. [Children’s L.E.C. Center, a Children’s Therapeutic Institution of Christian Children’s Welfare Association] Due to the impact of the earthquakes, the air conditioners in the facility’s dining hall had broken down, causing difficulties for the children living there amidst the severe summer heat. They utilized our donation to restore the air conditioners, and we have been informed that the children are now able to eat in the dining hall once again. The Walking Together Hand-in-Hand with Children Public Interest Incorporated Foundation, where our Representative Director Goto serves as Secretary-General, makes annual donations to children’s therapeutic institutions every December. However, given the situation’s high level of urgency, D-POPS GROUP provided support in a more timely manner. We carry out our CSR activities with the hope that the young people and children who will carry the future of Japan and the world can find relief from their difficult circumstances. D-POPS GROUP will continue to aim for business expansion so that we can consistently contribute to society.

The Power of Building Trust Before the Cruise Even Starts with a Greeting 【About This Part】In Part 3, the final installment in our three-part interview, we asked Captain Taguchi how a sense of hospitality gets passed down by international crew members, the differences between large corporations and startup companies as seen through the example of cruise ships and yachts, the secrets of communication, the future of Asuka II and the next career steps he envisions, as well as his resonance with D-POPS GROUP’s Venture Ecosystem. (This interview was conducted in August 2026.) Be sure to check out Part 1 and Part 2 of this interview, as well! ◆Japanese Hospitality Provided by International Crew Members Sugihara:My parents-in-law seem to sail on Asuka II frequently, and apparently, they even get a specific room every time. My wife has also been on board a few times, and she mentioned that while the service was absolutely flawless, there were a lot of international crew members. Given that most of the guests are Japanese, I assume this isn’t primarily for English language support, but rather due to cost considerations, staff shortages within Asuka Cruise specifically, or the general shortage of labor across Japan. What are your thoughts on this? Taguchi:You are exactly right. With foreign cruise ships also operating here, cost is a major factor. There is also the reality that it is quite difficult to recruit a full crew using only Japanese staff. Almost all of the guests sailing on our ship are Japanese, and while the number of international guests is slowly increasing, from a cost perspective, we hire personnel, such as those from the Philippines, whose salary requirements are relatively lower. People might wonder why a ship operating in Japan has a foreign crew, but as long as certain conditions are met, international staff are legally permitted to work, so we recruit accordingly. To ensure they can serve our Japanese guests, we provide thorough and necessary Japanese language training before they board, although they may not reach native-level conversation skills. Sugihara:Beyond just language, are aspects like the manners of hospitality also passed down from senior crew members? Or is there formal, official training provided by the company? Taguchi:We do have training on the foundational rules of what must be done, but crew members from the Philippines, in particular, often return to serve on Asuka II repeatedly. They work their contract, take a vacation, and then come back on board. Through that cycle, within the interpersonal relationships between senior and junior staff, they learn by observing others in action, and I believe that is how the hospitality aspect is cultivated. Sugihara:So that is how Japanese-style service is properly learned. I think the restaurant industry is exactly the same. Even when it’s impossible to fully staff a restaurant with only Japanese workers, many places are supported by international staff who still manage to provide a solid Japanese dining experience. I think there are many industries propped up by the dedicated work of international personnel. And that same phenomenon is happening on the Asuka. ◆Cruise Ships and Yachts: The Essence of Large Corporations vs. Startups Sugihara:Captain Taguchi, you and I actually became friends through a yacht club. You once mentioned that the scenery and the joy of sailing are completely different between a luxury cruise ship and a small yacht. Hearing that made me think that a cruise liner could be compared to a large corporation, while a yacht is like a startup company. You’ve spent most of your career on cruise ships—the large corporations of the sea—but do you find yachts more enjoyable because sailing on them ignites your soul as a sailor? Taguchi:You’ve got a point. A large ship is physically massive and carries many people, so everyone has their own specialized field. Each person handles their designated role to collectively build a single experience. While you work incredibly hard at your specialty, you only have a vague idea of what everyone else is doing. On a yacht, you essentially have to do everything yourself. Things that would be divided into 20 different departments on a large ship fall on your shoulders, meaning one person has to handle four or five roles simultaneously. You have to oversee various aspects generally rather than with deep specialization, which was actually a refreshing change. You also get much closer to the water when sailing on a yacht, allowing you to truly experience the ocean’s appearance for yourself. You notice when the wind shifts or when the shape of the nearby shore causes the wind to strengthen. Even when cruising through the same Sagami Bay, when I’m on this big ship, I just look down at the wind gauge and think, “The wind is shifting,” but I don’t feel it physically in the same way. Sugihara:You also mentioned that from inside the bridge, you cannot see the ocean immediately adjacent to the hull. You can see hundreds of meters ahead, but you can’t see the surface of the water directly surrounding your ship. On a yacht, however, the water’s surface is right there in front of you. I felt this perfectly illustrates the difference between large corporations and startup companies. You can feel the market directly on your skin—for better or worse, experiencing that close-call sensation accompanied by risk. It’s a very common experience for startup companies. If you launch a cutting-edge AI company, you are constantly crashing headfirst into the very forefront of the industry. However, if you do that within a department of a large corporation, you already have a massive number of users simply due to the size of the company. While large corporations have the advantage of being able to accomplish huge projects, startup companies can feel the market firsthand, just like feeling the ocean on a yacht. Taguchi:That’s true. I am grateful to have experienced both. The view from the top deck of Asuka II ◆Trust Earned From a Single Greeting Sugihara:On the Asuka Cruise website, I read your comments that emphasize the importance of communication with your crew and your guests. That being said, I imagine there are many different types of people among both guests and crew, and naturally, there are people you get along with well and those you might find difficult. Could you share your secrets for communicating with a wide variety of people and building close relationships despite that? Taguchi:One thing I am mindful of is that, since almost all of our guests are Japanese, I make a point to actively greet and call out to everyone, especially those international crew members who are accustomed to Japanese. Just walking through the crew area, you encounter staff in various positions. Rather than waiting for them to greet me first, I proactively say “Hello” or “Good morning”. As a result, they gradually warm up to me and become more approachable. What starts as just a greeting gradually evolves into actual conversations, and I feel that accumulating those small interactions leads to good relationships. Even with strangers, a greeting isn’t viewed with suspicion, and it’s a very convenient way to join a social circle. Hardly anyone is shocked by a sudden greeting. As you greet people repeatedly over time, they gradually become accustomed to the exchange, and we start to be comfortable enough to exchange extra information beyond greetings. Sugihara:It is true that the most wonderful people are the ones who make sure to greet and speak to everyone. People who are highly regarded by others always ensure their greetings are thorough. ◆The Future of Asuka II and Captain Taguchi’s Next Course Sugihara:I saw the news regarding the newly built passenger ship that will succeed Asuka II. What does this mean for you going forward? You have served as the captain of a large cruise ship for many years, but how do you envision your future career path? Taguchi:First, regarding the news you mentioned, I believe it is currently still under consideration. In Japan, there aren’t very many shipyards left that are capable of building a passenger ship of this scale, and if you try to build it overseas, the prices have skyrocketed due to the weak yen. The current Asuka II was originally a ship called Crystal Harmony used in the United States, and it is actually 36 years old this year. You can think of a ship’s age similarly to a car’s. Once it surpasses 20 years, it starts to feel a bit like a classic car. Around the year 2030, this ship will reach the milestone of 40 years of service. If we are to continue boarding guests and running a rigorous cruise schedule, continuing to use it beyond a 40-year lifespan will require considerable deliberation. However, there is no new detailed information yet. As someone who has sailed on this ship for a long time, seeing it go—while perhaps a natural end to its lifespan—would certainly be sad. In fact, guests sometimes tell us that ships like this are hard to find nowadays. I think it’s moving a bit into the realm of being an antique. Sugihara:Does that mean that while the interior, wallpaper, and lighting have been renewed, mechanical components like the engine have remained unchanged? Taguchi:Improvements and maintenance are carried out wherever appropriate, but in the sense that the entire engine plant itself has not been replaced, you could say it remains unchanged. Sugihara:What do your next career steps look like? Taguchi:I have been operating ships as a captain for a long time. There is a field that requires a national qualification and can only be entered by those with experience operating large vessels. It’s called a marine navigator, or pilot. The job of a pilot involves boarding large ships arriving from overseas while they are still offshore. When these ships enter areas like Tokyo Bay, which are shallower and narrower compared to the Pacific Ocean, there is a risk of running aground or causing accidents if navigated incorrectly. As an expert of that specific area, the pilot boards the ship and supports the navigation by providing advice like, “It’s shallow here,” or “The tidal currents are strong over here.” Moving in that direction has emerged as one of my options, and I am currently still considering it. Sugihara:Is that a job you can only do if you have experience as a captain? Taguchi:It’s a hard requirement, yes. The qualification requires you to have actual sailing years and at least two years of experience as a captain on a vessel over a certain size, even if not a passenger liner, that travels overseas. There is one other route as well, but I am still pondering whether or not to pursue it. Sugihara:In the sense that it’s a job taken on as a second career by someone with extensive experience, wouldn’t you say this is similar to a corporate advisory position? In both cases, one must possess deep, specialized knowledge of a certain port or a certain industry. Taguchi:That’s true. I suppose my professional experience navigating a cruise ship to various ports as a captain will help me become a pilot as the expert of a specific port. That’s one possible career path for me after I retire from being a captain. ◆Alignment with D-POPS GROUP’s Aim of Realizing a Venture Ecosystem Sugihara:D-POPS GROUP is a collective of companies that integrates actual businesses and technology together, a concept that we denote as “Real World x Technology x Synergy”. We have 26 group companies, and about 35 investment portfolio companies. We provide one-stop solutions to companies both inside and outside the group, aiming to realize a Venture Ecosystem. I would love to hear your thoughts on these initiatives and philosophies. Taguchi:First off, within that framework of “Real World x Technology x Synergy”, what types of business areas do those 26 and 35 companies mostly operate in? Sugihara:Broadly speaking, many are in the IT and communications sector. However, they each have different areas of expertise. There is a cluster of companies operating smartphone shops, which is our founding business, and another cluster dispatching personnel to serve customers at those shops and mass retailers. We also have a company that trains and educates dispatch staff for our own stores as well as other companies’, a technology company specializing in DX utilizing smartphones, and a company that creates smartphone-optimized websites for SMEs and retailers. Another major purpose we have is the philosophy of nurturing business executives. Some people want to run things themselves, so we also support spin-outs in related businesses. Taguchi:Operating as that kind of group sounds like a wonderful thing, and I’m kind of jealous. With people from various business formats present, whenever a demand arises with someone asking, “Can we do something like this?” you are able to fulfill it in a space where people with the right expertise are already gathered. Sugihara:Yes, it is about giving shape to dreams. Our members introduce clients to one another and even conduct joint sales activities. Taguchi:I think that is excellent. I’m envious. I don’t know if corporations like this existed in the past, but previously, these kinds of connections were something you had to manage through personal networks and relationships. It might have been difficult unless the core person possessed immense charisma, but by tackling things as a collective like this, I imagine it becomes an organization that can realize not only business opportunities but also solutions to problems and aspirations. That sounds great. Sugihara:As for the company’s direction, even as the world becomes increasingly digitized and AI advances, we want to cherish the tangible spaces where people serve people. For us, that means physical stores like smartphone shops, and a desire to warmly welcome people who genuinely enjoy visiting the beauty salons operated by one of our investment portfolios. Rather than a world where everything is completed digitally, we want to value real experiences—the feeling of “I want to meet that person,” or “I would be so happy to stay here.” For example, even if it became possible to experience Asuka II through virtual reality goggles, I don’t think true Asuka fans would be satisfied. Taguchi:For sure. Now, seeing the activities of D-POPS GROUP, I’d like to ask you, do smaller companies ever express a desire to join the group? Sugihara:Yes. Of the 26 companies I mentioned earlier, including spin-outs, over 10 joined us in the following manner: the founding president said, “I want to join the group,” and subsequently sold his shares while continuing to run the business as CEO. The shares belong to the group, but the CEO stays the same, continuing the business within our framework. There are about 10 companies like this. That directly ties into our desire of realizing a Venture Ecosystem. We don’t accept just anyone; our targets are companies that practice autonomous, independent management and align with our philosophy. In terms of our investment portfolio, there are companies that applied after hearing about D-POPS GROUP and our concept of a Venture Ecosystem. Taguchi:That is truly wonderful. Listening to you speak about this group, I feel it plays a platform-like role. Sugihara:Exactly! We are building a platform to help entrepreneurs operate vibrantly, increase their probability of success as much as possible, and bring their ambitions closer to reality. Taguchi:So that is what you are doing. The people involved operate in digital fields like IT and telecommunications, but of course—just like myself—everyone is human, so the idea that you can meet various people with different areas of expertise, and that synergy might be born, sounds incredibly interesting. Sugihara:Perhaps someday we might even partner with Asuka Cruise, ha ha. Taguchi:We certainly have plenty of real life experiences here. I would love for you to see them. ◆A Message to Readers Sugihara:Finally, could you offer a message to our readers? Taguchi:At our company, NYK Cruises, our defining corporate slogan is “We want to share a moving experience with you”. We want guests to board our ship and witness beautiful, real sunsets, stunning scenery, and experiences at various ports of call. Everything is real. The topic of virtual reality came up earlier, and while it might not be compatible with the digital realm, we are fully committed to providing those tangible, real experiences. For those who are exhausted by the digital world or who want to feel something real, I highly encourage you to board our ship. I believe that actually seeing the real thing and feeling something from it is a wonderful experience. This is a story I heard from a former executive at our company who once had the opportunity to speak with someone from Disney. The person from Disney apparently praised us, saying that while Disney moves people through fictional mediums like animation, being able to deliver moving experiences through the real, physical world is a fantastic thing. In any case, while we say we have moving experiences to share, our true strength lies in our ability to provide a wide variety of experiences and sensations within that real, physical space. Interview conducted by D-POPS GROUP’s advisor Genta Sugihara. 【NYK Cruises Co., Ltd.】 President and CEO: Yuji NishijimaLocation: The Landmark Tower Yokohama, 2-2-1 Minatomirai, Nishi-ku, YokohamaEstablished: January 1989Website: https://voyage.asukacruise.co.jp/en/

Cost Management to Protect Margins When Your Primary “Cost of Goods Sold” is Employees D-POPS GROUP is a collective of companies that integrates actual businesses and technology together, a concept that we denote as “Real Business x Technology x Group Synergy”, aiming to realize a Venture Ecosystem that will continue to be indispensable to society even 100 years from now. In this article, we will take a look at businesses where people serve as the primary cost of goods sold (COGS)—such as staffing, SES (System Engineering Services), and contract development. Using Konosuke Matsushita’s maxim, “Profit lies in the source,” we will break down the “man-hour management” that is indispensable for generating sustainable profit. 1. “Profit Lies in the Source” and Man-Hour Management The legendary Japanese business philosopher Konosuke Matsushita once said, “Profit lies in the source.” This phrase means that to generate long-term profit, masterful procurement and cost management are far more critical than merely driving up sales or raising retail prices. While people interpret this in various ways, we would like to apply this philosophy to businesses whose primary cost is human resources. In a business where people are the biggest expense, ensuring long-term profitability requires something far more fundamental than simply increasing headcount to boost sales or trying to raise the price of their services. Rather, maintaining a high level of operational efficiency (i.e., “utilization management”) fits Matsushita’s principle perfectly. Before we continue, we must offer a brief disclaimer. This discussion focuses on the reality where, from an accounting perspective, human resources are calculated as COGS. While phrasing it this way may sound insensitive, it is easier to understand, so we will proceed under the understanding that for our intents and purposes within this discussion, people equate to business costs. 2. There Are Different Types of Man-Hour Management The focus here is on businesses where people are the primary cost—specifically, staffing, SES, and contract development—which even includes some of the companies within our group. Even within these models, there are several different varieties of “man-hour management”. The first type applies to the core of SES and traditional staffing businesses, where an individual is dispatched full-time to a client or takes on full-time contracted work. The goal here is to clearly track when a contract starts and ends, managing the handover of assignments so there are no gaps between a dispatched employee’s assignments. Since the work is always booked as one FTE (full-time equivalent), it might be more accurate to call this utilization management or “contract management” rather than man-hour management. The second type is what we traditionally consider true man-hour management. In engineering, this applies to contract development and quasi-mandate (i.e., time-and-materials) contracts. In retail and sales, it applies to staff who only work weekends at promotional events. For instance, if Employee A is hired to work 160 hours a month, management must ensure that the tasks currently assigned to them actually equate to 160 hours (1 FTE) of billable work. 3. What Happens When Man-Hour Management Fails (The Staffing Business Case) Let’s look at what happens when this management is lacking, using the first example. If an employee is on an assignment until the end of August, but no plans or actions have been made for September onward, that individual becomes idle. The revenue earned from the individual drops to zero, but if they are a permanent employee, their salary must still be paid even while they aren’t being dispatched to a client. Let’s run a simple simulation using a full-time sales staffing model. In a standard sales dispatch business, the average employee might generate roughly 380,000 JPY in monthly sales, with salary and social insurance costs totaling around 300,000 JPY, leaving a gross profit of about 80,000 JPY. If there were 100 such employees, the total gross profit would be around 8,000,000 JPY. However, this varies depending on the number of employees who are not being actively dispatched. If 30% (30 employees) aren’t utilized, the business is already in the red at the gross profit stage. If 20% (20 people) aren’t utilized, gross profit falls to 2,000,000 JPY. The business will face an operating loss unless sales, general, and administrative (SG&A) expenses are kept under 5%. If 10% (10 people) aren’t utilized, gross profit is 5,000,000 JPY. The business will face an operating loss unless SG&A is under 13%. If 5% (5 people) aren’t utilized, gross profit is 6,500,000 JPY. The business will face an operating loss unless SG&A is under 17%. Given standard SG&A ratios, the reality is that if a staffing company fails to manage its man-hours properly and hits a 5% idle rate, it will almost certainly fail to turn a profit. 4. The Case for Engineering (Contract Development and Quasi-Mandate) For our second example, let’s look at the engineering sector. If an agency has 20 engineers working on contract development or quasi-mandate projects, and each works 160 hours a month, that yields 3,200 available work hours. If man-hour management is neglected and this capacity isn’t filled, the company will face the same fate as the staffing example: paying permanent engineer salaries with no incoming revenue. Unlike standard staffing, contract development and quasi-mandate projects can experience massive swings in revenue and profit margins per FTE, so sweeping generalizations are difficult. However, if the combined salaries of those 20 engineers total 8,000,000 JPY, the company must generate monthly sales of 8,500,000 JPY (at a 5% SG&A ratio), 8,900,000 JPY (at 10%), 9,500,000 JPY (at 15%), 10,000,000 JPY (at 20%), or over 11,500,000 JPY (at 30%) just to break even. A common scenario in engineering is that extreme volatility in profit margins means a few highly lucrative projects—or a handful of top talent—can temporarily carry the entire business. This creates a dangerous illusion where companies can survive without doing the tedious work of man-hour management. However, when a crisis hits—the lucrative project ends, the top earner quits to go freelance, or the project pipeline dries up—a lack of man-hour management means leadership has no idea who has spare capacity and who doesn’t. Work cannot be effectively reallocated. It is only when backed into a corner that leadership finally realizes who actually had spare capacity all along—in other words, who hasn’t been working. In the earlier scenario of 20 engineers with 3,200 available hours, leadership must actively manage man-hours to ensure at least a 95% utilization rate (around 3,000 hours) during normal operations to secure stable profits. Without this baseline management, a company won’t be able to pivot during a crisis, leading to massive deficits or even bankruptcy. By routinely tracking man-hours, management can foresee when the pipeline is thinning and people are about to become idle, allowing them to take proactive measures before disaster strikes. 5. “Unexplained Victories”: The Risks of Not Managing Man-Hours Recently, contract development and quasi-mandate businesses have become highly susceptible to the impact of AI. Even if a company is currently profitable, running this type of business successfully without strict man-hour management is merely what Seizan Matsura (famously quoted by former Yakult Swallows manager Katsuya Nomura) called an ‘unexplained victory’ in his adage, “There are unexplained victories, but no unexplained defeats.” Relying entirely on a specific project or a few key individuals is not, frankly, real business management. As tedious as it may be, managing the man-hours of employees who constitute your core COGS is mandatory. When the business cycle turns against you, an enterprise lacking man-hour management will collapse rapidly, and recovering from that state will be incredibly difficult. 6. Applications Beyond Staffing and SES: The Retail Example Does this logic apply to industries outside of staffing and SES? If we translate this to the retail industry, it is identical to a store manager blindly expanding their product lineup without realizing their business is only staying afloat because one or two items happen to be smash hits. Once the trend passes and those hit products stop selling, revenue crashes, leaving the store saddled with the massive mountain of dead inventory they unnecessarily expanded. They’ll be bankrupt in no time. In retail, this is called “SKU management” (tracking the sales of each individual item) rather than man-hour management. The scenario above describes a business purchasing inventory without grasping what is actually selling, generating massive dead stock, yet surviving by pure luck thanks to revenue from a single hit product. While this sounds like a classic cautionary tale, it relates perfectly to the situation we described earlier: “Running a business without man-hour management, relying entirely on specific individuals or projects for revenue, without understanding the organization’s true working capacity.” 7. Conclusion If you want to generate real profit in a business where people are the primary cost—whether that’s sales staffing, engineering SES, or contract development—your first priority shouldn’t be hiring more sales reps to chase new accounts, aggressively recruiting more staff to inflate top-line revenue, or cherry-picking high-paying jobs to raise unit prices. Instead, you must practice strict man-hour (utilization) management of your current employees. Achieving the optimal FTE output with the optimal headcount through smart cost management—i.e., practicing the concept of “Profit lies in the source”—is the most direct path to profitability. Through this discussion on man-hour management, the core message D-POPS GROUP wants to convey is that business is much like mixed martial arts, which requires a blend of striking, grappling, and groundwork. Sales, recruiting, and technological development do not exist in isolation. Flashy moves in sales, hiring, and tech can only be successfully executed when built upon a rock-solid foundation of highly unglamorous groundwork, such as man-hour management. D-POPS GROUP believes a business cannot survive on good sales or high-level tech alone; mastering the unglamorous fundamentals is what truly matters. Through D-POPS GROUP’s Venture Ecosystem, we will continue to share candid, practical insights to guide business and management, drawing from our extensive hands-on experience across a wide, diverse portfolio of industries rather than just a single sector. We hope that you enjoyed this article and look forward to working with you in the future. D-POPS GROUP Managing Executive Officer Tetsuya Watanabe

The Job of the Asuka II Captain: An Unwavering Commitment to Safety 【About This Part】In the second of our three-part interview, we asked about the brand recognition of Asuka II, the reality of a captain’s duties, the career path from cargo ships to passenger ship captain, and dealing with crises like sudden illness and approaching typhoons. (This interview was conducted in August 2026.) Please check out Part 1 of this interview if you have not already! ◆The Brand Recognition of “Asuka Cruise”: The Difference Between Japan and the World Sugihara:Even as someone who has never been on a cruise, I have the impression that when someone thinks of luxury cruises, Asuka Cruise comes to mind. It’s a brand that has been built over many years, but just how much power does this brand hold? Taguchi:Domestically speaking, with Asuka III also having debuted in 2025, many customers and the general public associate passenger ships with Asuka Cruise, so I believe our brand recognition is quite high. The background fact that foreign cruise ships rarely visited Japan in the past has also had an influence. On the other hand, when it comes to overseas presence, there are many operators specializing in passenger ships that run fleets of 10 or 20 vessels. Our company, NYK Cruises Co., Ltd., primarily operates cruises along the Japanese coast, so we might not be as well-recognized globally. Sugihara:In that case, it seems Asuka Cruise exists for the people living in Japan. There are many foreign cruise ships that call at Japanese ports, but yours connects Japan with the world. Taguchi:That’s right. For example, if someone just wants to go on an Alaska cruise, they could fly to Vancouver, Canada, and board a foreign cruise ship from there. However, in that case, the onboard environment is geared toward Westerners, and I doubt much Japanese food would be served. With our Alaska-Hawaii cruise, guests can enjoy the scenery of Alaska and Hawaii while maintaining a lifestyle similar to what they experience in Japan. It’s truly a cruise designed for Japanese people. Sugihara:A cruise for Japanese people, indeed. Now, I’d like to ask a question geared more toward business management. In a sense, this massive ship could be compared to a company, where the passengers are customers receiving the services provided by the employees—in your case, the crew members. Thinking of it that way, the captain must be like the CEO, the person with the highest level of responsibility. What do you think? Taguchi:If you zoom in, I do have the highest level of responsibility on the ship. However, as with the example of food procurement I gave earlier, not everything is handled exclusively onboard. Our operating company, NYK Cruises, has an office on land that plans and designs the types of cruises and services we offer, and conducts various types of research. Since we have an office and on-site relationship, I may be the top executive on-site, but we’re just one entity within the company, so to say I’m like the CEO isn’t quite accurate. I would say my position is more like a “site manager”, like the manager of one factory in a corporation. Sugihara:I think that’s the same in business management. Even if a factory is manufacturing products, it doesn’t operate in a vacuum. Without the headquarters staff doing advance preparation, providing support during manufacturing, and handling sudden accidents, the factory wouldn’t run. The operation isn’t completely contained within a single ship; many people at headquarters are involved as well. Taguchi:Yes, that’s correct. We have about 100 to 150 people working in the office. ◆Is the Captain a President or a Factory Manager? Sugihara:So it’s not run solely by the 490 crew members. Could you tell us about the specific daily duties of a ship captain? Taguchi:Actually, once you become the highest authority, you are rarely involved in detailed, hands-on tasks. In principle, I only need to take direct control during highly sensitive situations like entering or leaving a port, so during those times, I operate the ship from the bridge (the control room). For example, once we leave Tokyo Bay and enter relatively open waters, I entrust the navigation to capable subordinates, while I take time to rest, do administrative work, or interact with guests. If a true emergency occurs, I stay on the bridge and handle the situation until it is resolved, without any concept of working hours. I can’t really have the mindset of clocking into work and then leaving after exactly eight hours. Once I board the ship, I may not disembark until the end of September, depending on the cruise schedule, but on the other hand, I don’t work non-stop that entire time. We don’t get full days off like people working on land do during the weekends, but looking at it on a daily basis, I generally work during the day and have time to rest and do as I please at night. Sugihara:So, is it possible to catch a glimpse of Captain Taguchi casually drinking alone at the bar in plain clothes, ha ha? Taguchi:We have rules about that. If we go into guest areas, we are considered to be on duty and must wear our uniforms. Below the 9th floor where we are now, on Deck 7, there is a promenade that wraps about 400 meters around the ship’s perimeter. If I’m just going for a walk there, I don’t need to be in uniform and can relax in exercise clothes. Sugihara:That also seems similar to business executives. For example, our company’s president works 24/7, 365 days a year, taking time off only for two days during New Year’s. He is constantly in a state of complete readiness to respond immediately if anything happens. Taguchi:Yes, we have to continuously live with tension. For example, Yokohama is our home port, so we often have a schedule where we dock at 9:00 AM for guests to disembark. To dock by 9:00, we need to reach the entrance to Tokyo Bay around 5:30 AM. I monitor the situation from the bridge while checking port schedules, the congestion of the waters, and the presence of fishing boats, so I sometimes have to work in the middle of the night to make sure we dock on time. ◆From Cargo Ships to Cruise Liner Captain: A Career Guided by Fate Sugihara:Next, I would like to ask a question related to career development. Becoming the captain of a luxury cruise ship seems like an ultimate destination, but were you aiming to be a captain from the very beginning? Taguchi:I didn’t necessarily have the goal of becoming a passenger ship captain, but ever since I was in elementary school, I was interested in ships and foreign countries, and I knew I wanted to sail on one. I never thought I could be a passenger ship captain, so even though it’s a major role for me to hold, I have been trying to do my best to make it work. While it wasn’t necessarily a role I actively set out to achieve, I wouldn’t call it pure coincidence either; rather, I have the privilege of serving in this position thanks to a fortunate alignment of timing and connections. My career path involved stepping up to become a cargo ship captain first. In the field of cargo shipping, people can become Third Officer, Second Officer, and First Officer. When I joined the company, I started as a Third Officer, gained experience to become a Second Officer, then a Chief Officer, and eventually moved up to Captain. Of course, this career progression happens while acquiring national maritime officer licenses. Sugihara:Even so, not everyone can get those, and out of the many who do, the ones who can actually become a captain must be less than a few hundred. Taguchi:That’s right, there aren’t many. Now, about 10 to 15 years ago, I worked on passenger ships for about three years, but after that, I returned to cargo ships, served as a cargo ship captain for several years, and even lived like a regular office worker on land for a time. It just so happened that right when I was going to transition back to the water after my land assignment, the captain of Asuka II retired, leaving an opening. HR approached me and asked if I would take the position. Frankly, it was all about timing and connections. Sugihara:Connections are important. In the startup world, it’s very common to hear that someone secured investment or got on track because of meeting a specific person. Among the many employees, there must be some who joined with a strong desire to become one of Asuka Cruise’s captains, and it is clear that not everyone can achieve that. If you had to list a few reasons why you were able to become the captain, what would they be? Taguchi:I truly believe it was fate and timing. I think doing my job solidly during my cargo ship days played a part, but while HR never gave me the specifics, it seems that when the upper management was choosing from several candidates, they went with me. Regardless of the competition ratio, there is the fact that I was chosen, and I suspect a big factor was their evaluation that I could grow into the role because I had previous experience on passenger ships. I think the fact that the timing just happened to align perfectly is a huge part of it. Sugihara:What I think is that your character played a role, as well. You are a captain with a cheerful personality that puts everyone around you at ease. ◆Crisis Management: Handling Sudden Illnesses and Deciding to Evade Typhoons Sugihara:Now for my next question. Let’s talk about crisis management. As the captain of a vessel that travels right through the middle of the ocean and thus has to deal with nature, have you experienced situations like sudden illnesses, guests with mental health emergencies, collisions, or other incidents on or off the ship? How did you handle them? Taguchi:I have captained long cruises, but fortunately, most of our guests have been quite healthy, so I haven’t had to handle any life-or-death emergencies while at sea. There have been cases where someone suddenly fell ill while we were docked at a port and was transported to the hospital by ambulance. In terms of crisis management while on the ship and out at sea, we haven’t faced any overly serious situations. Now, if something were to occur, we do have a clinic onboard where limited medical procedures can be performed, but it is not a hospital, so the equipment is limited. If needed, we would transport the patient to a medical facility on land as quickly as possible. In some cases, we would push hard to arrive ashore in four days instead of the originally scheduled five. If it were a truly urgent situation, we would request medical transport assistance via helicopter from organizations like the Coast Guard of whatever country we’re closest to, hoisting the patient up and airlifting them to a hospital. During those times, our land-based staff are also tapped to coordinate the response. Sugihara:I know you also have to deal with major environmental changes like swells, storms, and typhoons. Are there cases where you have to change your route because a typhoon is approaching? Taguchi:Yes, there are. Above all, it’s about evading danger before putting the ship in a risky situation. Rather than trying to navigate through a typhoon, it’s far better to avoid the typhoon altogether. I closely monitor the weather forecasts, and if I determine that following a certain route will definitely result in encountering the typhoon, I give up on going that way and take a wide detour. Sugihara:So it’s not a matter of skillfully navigating straight through the storm, it’s about avoiding it altogether, and putting the safety of the guests first. Taguchi:Exactly. If a typhoon approaches and we can’t execute the planned cruise, we might cancel the original itinerary and prepare an alternative cruise with a different route. In principle, we will never get even close to anything dangerous. Sugihara:I see, so you absolutely do not put your ship, with all the passengers on it, into a tense situation like we see in the movies. ~To be concluded in Part 3~ Interview conducted by D-POPS GROUP’s advisor Genta Sugihara. 【NYK Cruises Co., Ltd.】 President and CEO: Yuji NishijimaLocation: The Landmark Tower Yokohama, 2-2-1 Minatomirai, Nishi-ku, YokohamaEstablished: January 1989Website: https://voyage.asukacruise.co.jp/en/ Next, in the final part of the interview, we discuss:・The internationalization of the crew and passing down a sense of hospitality・The differences between large corporations and startups as seen from the perspective of cruise ships vs. yachts・The power of greetings in building communication and trust・The future of Asuka II and the next career steps Captain Taguchi envisions・Alignment with D-POPS GROUP’s aim of realizing a Venture Ecosystem・And other topics. Stay tuned for Part 3!