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“Serve people and cultivate talent” Aim for further growth through developing human resources and systematization! D-POPS GROUP has 23 group companies that we call partners (at the time of publication). For this article, we interviewed Shoto Masuda, the current CEO of D-POPS Corp., the founding business of D-POPS GROUP. (This interview was conducted in March 2025.) This is the latter part of the interview. To read the first part, click here. ◆The Market Environment Sugihara: It seems that the business model of selling smartphones in physical stores is facing headwinds, given the increase in direct sales by carriers and manufacturers via e-commerce, as well as the growing market in different industries for buying and selling used devices. Could you share some aspects of your strategy in this market situation? Masuda: For about the past year, we’ve been heavily discussing our future strategy. We have many excellent existing businesses. Because they are directly connected to people’s daily lives, the products and services we handle are very attractive, I believe. However, on the other hand, when you’re in the position of an agency, control and management become incredibly difficult, so I really feel that balancing these aspects is extremely challenging. Regarding our strategy moving forward, it’s still fundamentally about telecommunications. While it’s quite broad to say telecommunications as a whole, there are many more products that we should really be selling. We will expand our product lineup to include items developed in-house and procured externally. Selling core products and cross-sellable products will be one of our first courses of action. Another plan is user life design. In essence, we are focusing our discussions on what people need for their daily lives and what problems need solving. This applies to our stores, and we’re also currently exploring if there's anything we can get involved in even without a physical store presence. Sugihara: Speaking of which, how is the “Smartphone Consultation Counter” business doing? Masuda: It’s growing steadily. It took a long time for feature phones and smartphones to penetrate into the Japanese market, but they have been fully received now. However, going forward, the products that come out, such as 5G and certainly 6G, and now even AI-equipped smartphones, are becoming so complex that many people don't know how to use them. For instance, people might not know how to use LINE, or how to link their My Number card, or how to connect IoT products to their home appliances. While devices have become widespread, many people don’t know how to use them, so we really want to address these customer needs, both in person and online. Sugihara: More and more people who are not tech-savvy, especially seniors, are finding themselves with no one to consult. Such individuals can run to a TOP1 store to address their concerns. So it seems there really are people who want to receive advice, even if they have to pay a fee. Masuda: That’s right. We used to do it on a volunteer basis, but we need to distinguish our business, and as we improve the skills of our staff, their wages also need to increase. So, we believe it’s better to charge a fee so that we can serve customers as professionals. We are also developing that service and are focused on continuously improving its quality. The third and final point is education. When I think back to what we most wanted to do since our founding, and what our strength still is today, it’s educating our human resources. The original vision of President Goto, the founder of D-POPS, was to create opportunities for young people. Although I’ve taken over as CEO, we’re still holding onto that vision, so at our core, we’re ultimately about educating people. In the end, we've committed to “cultivating talent”, so I believe that embedded in our company’s DNA is the idea of raising up “leaders equipped with both integrity and skill”, which also continues to be our human resource development policy as our business grows and evolves. In 2024, I had the opportunity to go abroad with Dr. Semmoto, the Chairman of D-POPS GROUP’s Board of Directors, and I realized that while some other countries have growing populations, the quality of Japan as a nation in various aspects is remarkably high. For example, I believe we can convey the high value of Japanese education, culture, and customer-focused service. Recently, as we’ve been brainstorming various ideas, we’ve gone back to our roots, asking: “What kind of company is D-POPS?” The answer is, “We are a company that develops human resources.” To make people genuinely excited and want to join D-POPS or work for us, I felt it was necessary to grow our business domains and to help individuals grow, making them believe that joining will lead to their personal development. ◆TOP1’s Policies for Sales and Proactivity Sugihara: Personally, when I picture mobile phone agencies in the past, I think, “Purely commission-based meritocracy!” What kind of sales and customer service policies does D-POPS’s own brand shop, TOP1, have? Masuda: Whether to compete purely on meritocracy or to prioritize meticulous sales and customer service—this is indeed the most challenging aspect. The truth is, when you chase sheer numbers, quality inevitably declines. That's why the industry as a whole has seen many compliance violations. However, no matter how good your intentions, if you don’t achieve results, you won’t get support, will you? Therefore, I believe it’s crucial to combine building a strong sales organization with education of the mind, which necessitates instilling our philosophy and vision. We believe that we are a company that properly educates its people and contributes meaningfully to those important individuals with whom we have connections, so we must continuously improve our quality. Essentially, it’s about whether we can establish a foundation of trust in human relationships and then build specialized skills and a favorable business environment upon that. There were many companies in the past that lacked this foundation. Those companies sold enormous volumes. They had high transient revenues and contributed more in terms of numbers than we did, but they no longer exist today. However, we need to increase both customer numbers and sales while simultaneously improving quality. So, we are working to strengthen this across the entire organization and aim for growth. ◆New Product “OTHEBES” Sugihara: So that’s why your philosophy-driven management and training truly come to life. It’s not just about the sales method; it’s because the staff, having gone through that philosophy training, are providing a service which enables them to support customers’ lives, lifestyle, and life design. I heard that as a future strategy, you’re launching a brand called “OTHEBES” to strengthen your customer base. Could you tell us more specifically about OTHEBES? Masuda: “OTHEBES” was launched in March. Led by Mr. Sakamaki, our Executive Officer and General Manager of Sales who is also in charge of product and business development, the first phase involves Wi-Fi rental and sales. OTHEBES is a portmanteau of “others” and “best”. While we have existing stores and products, there are still gaps where current products don't quite resonate with or contribute to end-users, and OTHEBES is designed to fill those gaps. Currently, for the first phase, we’re handling Wi-Fi. In the future, for example, some people only use their phone for calls, so we want to create our own brand of call-only mobile phones, plus develop combinations that pick the best aspects of different services. Recently, a slogan has emerged among us: “Create something new out of what already exists!” So, we are now analyzing the demands from both the field and customers, considering combinations that we believe will work. Sugihara: Both in terms of planning and on the ground, with the increasing number of products, carriers, hardware, and brands you handle, and your company’s own services appearing, there’s a risk that sales staff who lack initiative might not know what to propose to customers. Are you concerned about that? Masuda: That’s why we prioritize foundational education. In fact, D-POPS didn't have many established systems until now. So, from here on, our theme for this year is to create proper systems, and based on the premise that people forget, we aim to create systems that can convey information more simply, rather than just forcing memorization. It’s all about human resource development and systematization. If a company can just put the right people in the right places and clearly divide roles, there’s no way they can fail, ha ha. ◆Soccer Activities Sugihara: Nice! I love that kind of attitude! Changing the subject completely, I hear you are quite skilled at soccer! And that you’re active in the company’s futsal club. Could you tell us about these activities? Masuda: I’ve played soccer continuously since my school days, and I’ve kept it up as a hobby even after entering the working world. Initially, it was just an in-house club activity at D-POPS. We play about once a month internally, and since I have various connections, I also play with external members. I probably belong to about three or four main groups. When we focused only on in-house members, we were always just barely scraping by with enough players. We wanted to play but couldn’t. At that time, it suddenly occurred to me: what if we brought in people from both inside and outside the company? So, we started doing that. We organize the games, inviting our employees and other members of D-POPS GROUP to join, plus my acquaintances, some of whom are former professional players. We also forged a connection with BLUEISH Inc. through soccer, a company in which D-POPS GROUP later made a corporate investment. This made me realize that sports can create such networking opportunities. *See the full press release here: D-POPS GROUP Invests in BLUEISH Inc., Operator of Industry-Specific AI Workflow “Omni Workspace” Until now, my life has been pretty much full of those kinds of connections. I attended the Semmoto Management School run by Dr. Semmoto, and there I met another company’s board director who also played soccer. That director turned out to be a high school classmate of a former manager of mine from Germany, who had really helped me out during my time living in Beijing. I really hit it off with that director, started attending the soccer practices he participated in, and that's where I met the people from BLUEISH. But I also think this involves luck and timing. If this had happened five years earlier, I don’t think the discussion about investment would have occurred. I myself have had various experiences up to now, and being in a management position allows me to engage in various conversations, which enabled me to bring this opportunity to D-POPS GROUP. I mentioned playing with external people earlier; there are also skilled individuals among my acquaintances who are business owners, or even executives and younger employees within their companies. And typically, those people also excel at work. It’s like things just connect. That’s incredibly valuable, isn’t it? When people have good character, shared interests that foster friendship, and different expertise, skills, and networks, it leads to a wide range of connections. ◆Recruiting Students Sugihara: It’s the time of year when job hunting for students graduating next year has begun. What type of student would you like to see join D-POPS? And what aspects of D-POPS do you think are attractive points for new graduates? Masuda: Our company, first and foremost, has genuinely good people. They have high self-esteem and are very proactive. They also tend to reach out to others and have a strong sense of contribution. Furthermore, in D-POPS and D-POPS GROUP currently, we offer an environment where you can leverage support and coaching for experience, skills, and networking. I truly believe there’s no better environment than this. So, for those who want to challenge themselves quickly, gain not just knowledge but also practical skills, and refine their human qualities, ultimately, we’d like them to take on management roles. We don’t really prioritize academic background. However, it’s absolutely crucial to have high self-esteem. I think it would be difficult for both of us if an employee is consistently negative. If you think to yourself, “I can’t do this”, then you won’t be able to achieve anything. ◆“Realizing a Venture Ecosystem” Sugihara: D-POPS GROUP has the motto of “Realizing a Venture Ecosystem”. What aspects of this goal do you resonate with? Are there any activities you’re undertaking with the creation of a Venture Ecosystem in mind? Masuda: I believe this ecosystem is essential for living. The truth is, people cannot live alone, and their lives definitely change depending on who they spend time with and the differences in insights they gain. Moreover, the sooner this happens, the better. I think things can change even if it’s late, but realizing things as early as possible leads to making the right choices. Therefore, I personally feel that a Venture Ecosystem is indispensable. Within the D-POPS GROUP community, there are many people whom I’d want to meet even if it meant spending my own time and money. So, I think getting to join a Venture Ecosystem like this—and even getting paid to do it through working for the group—is quite an extraordinary opportunity. I want people to clearly recognize that it isn’t enough to simply show up. How you choose to act is up to you. It would be great if a group could form where people don’t just exist within the community, but actively initiate things themselves—whether it’s asking for guidance or contributing their own expertise. ◆Ideal Vision for D-POPS in 5 Years Sugihara: That’s wonderful! Now, could you tell us your ideal vision for D-POPS as a company and for yourself five years from now? Masuda: First and foremost, the company will have grown significantly. And I believe we will certainly have established a stage where we can better support customers’ life designs and employees’ self-realization within five years. We aim to expand this both domestically and internationally. I view this as a personal mission or message for myself: I want to ask myself, from a larger, global perspective, what do I need to do? I’m currently having various discussions while considering that. I believe the execution phase for that will be this year and next, so the company will likely undergo a significant transformation. Sugihara: That sounds promising. Now, are there any challenges you face in moving toward that future? Masuda: For Japan, it’ll definitely be the severe labor shortage. I have three children now, but when they grow up, in 20 or 30 years, the population will have decreased considerably, won’t it? When the population potentially drops to around 80 million, the question will become to what extent Japan’s culture and values, cultivated until now, can be transmitted and passed down. So, I think it’s about whether we can continue to impart education, not just to Japanese citizens, but also to foreigners. Another challenge, though it’s currently unclear, is nature itself. Among the challenges I’m currently taking on, I see existing businesses, information, and telecommunications as one aspect, then personal development for individuals as another, and finally, environmental conservation. What exactly we can do is not yet clear, but I am gathering information on it. ◆Message to Readers Visiting Our Website Sugihara: Finally, in closing, could you share a message for our online readers? Masuda: I believe our Venture Ecosystem is not just an ecosystem of startup companies, but an ecosystem containing groups of professionals driven by an intense spirit of altruism. I think there’s already something you can see and feel by simply looking at it. If you find something appealing or interesting after checking it out, I sincerely hope you’ll take the next step. We look forward to meeting you directly, and we would be delighted if you could contact us.   Interview conducted by D-POPS GROUP’s advisor Genta Sugihara.   D-POPS Corp. Company President and CEO: Shoto Masuda Address: Shibuya Hikarie Bldg. 32F, 2-21-1 Shibuya, Shibuya-ku, Tokyo Established: February 1998 Website: https://d-pops.co.jp/

“Serve people and cultivate talent” Aim for further growth through developing human resources and systematization! D-POPS GROUP has 23 group companies that we call partners (at the time of publication). For this article, we interviewed Shoto Masuda, the current CEO of D-POPS Corp., the founding business of D-POPS GROUP. (This interview was conducted in March 2025.) ◆Background of Initial Employment Sugihara: President Masuda, thank you for agreeing to this interview. You joined D-POPS right after graduating in April 2012, correct? Could you tell us how you came to join the company? Masuda: During my university days, I went to Beijing to study abroad for four and a half years. I didn't really know how job hunting worked. So, during the summer break after the first semester of my senior year, July and August, I used those two months to start my job search. I think I actually interviewed with about five companies. I tried for major trading companies and such, but it didn’t work out. In the end, the companies that offered me a job were D-POPS and a large company listed in the First Section of the Tokyo Stock Exchange. I received that large company’s offer first, but my feelings changed as I went through the interviews with D-POPS. When I interviewed at D-POPS, the company atmosphere seemed bright. I could really envision its future development. Also, after speaking directly with Mr. Goto, I had a strong intuition that joining this company would change my life, or that I’d encounter a huge positive opportunity for my life. So, midway through the process, my mindset shifted to “I want to join this company”, and I was hoping they wouldn't reject me, ha ha. By the way, my final interview with Mr. Goto lasted about three hours. Sugihara: How big was D-POPS at that time? Masuda: I think the company was probably around its 15th fiscal year. Sales hadn't reached 10 billion yen yet…I think they were around 7 to 8 billion yen. At that time, the strong rallying cry throughout the company was something like, "Let's reach 10 billion yen in sales!" ◆Getting Appointed as CEO Sugihara: D-POPS is the founding business established in 1998 by President Goto, founder and CEO of D-POPS GROUP. However, you became president of D-POPS in March 2024, even though you’re only in your mid-30s. I hear you were promoted at an exceptional pace over these 12 years, becoming a general manager, executive officer, and so on. Looking back, what are your thoughts? Masuda: Well, I certainly think “luck and timing” played a role. In addition, the fact that the company was on the verge of a major transformation was a significant external factor, I believe. You see, about a year after I joined, D-POPS and Good Crew had already reached 10 billion yen in sales. From there, when President Goto envisioned further growth strategies, he shifted from D-POPS growing alone to gradually developing a group structure. At that time, President Fujita, who was my superior, left to establish Advancer, and then President Hosaka left to establish STAR CAREER. When my superiors became independent, or “graduated” in a sense—and I think this involves both external and internal factors—there was a period when the company’s performance declined, and the organization underwent a major change. I was in my third year then, still only a store manager, but at that point, what was originally a large pyramidal organization was flattened, and almost everyone became approximately the same level, directly under the president. A manager in their third year is considered young, right? Even at that level, we were given a lot of discretion. Meetings that were previously only attended by the top management became intense morning discussions involving about 20 selected individuals, which provided a great learning opportunity. It became a chance for members in their third year, like myself, to seize opportunities. We took on challenges one after another. Rather than feeling like assignments were given to us from above, it felt more like “We’re going to seize these ourselves.” It was lucky that we were presented with equal opportunities, but I believe the proactiveness to seize those chances was also incredibly important. Sugihara: As you seized opportunities and moved up the ranks, what was the area where you put in the most significant effort? Masuda: I worked the hardest at constantly reaching out to my superiors. It was also around the time Dr. Semmoto joined, and I made sure to sit next to and learn from President Goto and other surrounding business leaders and advisors—people who were significantly above me—whenever there were opportunities for dinners or study sessions. Not many people want to do that. But I knew that if I dove fully into it, there would always be something to gain. And in terms of work, from the company’s perspective, they usually ask people to take charge of areas with poor performance, right? I proactively took on such positions, driven by the desire for those areas to improve as quickly as possible. Thus, when performance picked up in those areas, I gained attention. And since they were challenging positions to begin with, even if results didn’t come immediately, I’d get words of encouragement like, “You’re doing great!” No matter what kind of challenge came my way, I made a conscious effort to tackle it head-on. Sugihara: How did President Goto approach you about becoming CEO of his company? And how did you feel at that time? Masuda: This part is a bit ambiguous. It wasn’t like President Goto called me in and said, “Okay, you’re the new boss now.” The truth is, although President Goto was still the CEO of D-POPS structurally, he had already been giving his undivided attention to managing D-POPS GROUP for several years prior to this point, and the management of D-POPS itself was basically delegated to the other top leaders. Within that context, the performance and organization of D-POPS progressively worsened. There was a very uncertain period. At that time, I was mainly in charge as the General Manager of Sales, and as I became an executive officer, and then a managing director and senior managing director, the company just wasn’t improving. I felt it was rapidly deteriorating, and I was struggling with the inability to see a clear path to recovery. President Goto and I had dinner opportunities about twice a year, just the two of us, and it was during one of those times that I asked him bluntly, “Please let me be president.” I had already decided within myself that we had no choice but to change. At that point, if President Goto were to return to operating D-POPS, it wouldn’t have been effective for all of D-POPS GROUP. So, I braced myself and thought, “I just have to do it.” Sugihara: From your perspective, were there multiple candidates for CEO at the time, or did you believe you were the only one? Masuda: The latter. I believed I was the only one. Perhaps there were others who thought differently, but I considered myself the only real possible successor. Sugihara: How many years ago did you start working with the awareness that you would be the president’s successor? Masuda: I’d say it was around when I turned 30 years old. At that time, I had become an executive officer, but I was only overseeing the Sales Division, so I wasn’t really looking at the company as a whole. However, given that President Goto was focusing on managing D-POPS GROUP, I definitely started to feel that I needed to take responsibility. From there, I started learning various things. These included encounters arranged by Dr. Semmoto, meeting people through President Goto, and even joining communities of business executives in my late 20s. The encouragement and stimulation from those around me was significant. At first, I wasn’t taken seriously at all because I lacked sufficient skill, but I somehow managed to hang in there. Over the past few years, I’ve gradually expanded my network, and I feel like I’m finally starting to see the fruits of all of my hard work and effort. ◆Business Overview Sugihara: Considering your long period of getting to where you are now, you’ve become quite the veteran. It’s been a year since you officially became the CEO of D-POPS. Could you give us a brief overview of D-POPS as a company and its current business operations? Masuda: D-POPS is now in its 27th fiscal year, and the telecommunications agent business, which was pioneered by our founder, remains our main focus today. We carry out our multi-brand store business via two lines. First, we operate under our own independent brand name, “Smartphone Consultation Desk TOP1”. These are telecommunications stores that carry all the major products and services from various manufacturers and Japanese mobile carriers, in addition to our own branded products, such as security services and insurance. Along with all of these offerings, we provide comprehensive consulting, retail sales, and after-sales support to our end-users. We currently operate over 30 stores, primarily in the Kanto region. The second line of store business is through specialty stores. As a telecommunications agency, we operate shops for the following major Japanese carriers: NTT’s docomo, KDDI’s au and UQ, and Rakuten Mobile. Furthermore, we’re involved in media operations, developing our own specialized telecommunications media called “PhonCierge”. And in PlusPass, a child company headed by President Hirai, who helped lead D-POPS alongside me, we operate a web media called “Smappy” which specializes in low-cost SIMs and smartphones. So, overall, we operate a telecommunications-focused platform that combines both real-world and online services, along with service businesses that support users. Sugihara: I believe there have been a lot of changes within telecommunications recently, especially in shop operations. What are these current industry trends? Masuda: There are various changes every year. Not just because of telecom carriers, but also because of Japan’s Ministry of Internal Affairs and Communications and other reasons. I think the biggest factor is the continuous alteration of various laws. However, D-POPS has been able to survive for over 20 years amidst all this because we’ve always really adapted to these changes. ◆What I Changed and Didn’t Change Upon Becoming President Sugihara: These past 20 years have been hectic, haven’t they? It’s been a year since you officially became CEO, in both name and reality. Can you tell us what significant changes you’ve made and what you’ve kept the same during this period? Masuda: This past year has truly been hectic and has flown by. Even before it was decided whether I’d become CEO, I had already made one firm decision. What’s truly great about D-POPS is how deeply our philosophy, vision, and human resource development were instilled as the company’s foundation by our founder, President Goto. I myself was educated through this, and it’s precisely why we’ve been able to survive. I felt that our approach to customers, employees, staff, and ultimately, society, has an excellent foundation, and all we needed to do is further refine it. Additionally, for several years, when President Goto resolved to focus solely on group management, the company was essentially without a commander. This led to a negative cycle where the upper management was adrift, mid-level employees kept leaving, and young recruits would join and then quickly depart. So, I knew we had to thoroughly rebuild from the ground up. Instead of just aiming to reduce the turnover rate in the short term, my first change was to create an environment where work is fulfilling and where both individuals and the organization can grow. To achieve this, I decided to gather all employees in person once a month for a dialogue. Partly due to the COVID-19 pandemic, but more so because our company has over 50 locations, opportunities for everyone to gather in person were limited to just a few times a year. While we do a lot of online communication now, I felt a strong sense of unease that it had become the primary mode of interaction. D-POPS has so many great qualities that I felt it was essential to convey them properly. Also, I wasn’t confident that I was adequately educating our people myself. So, I made this decision for myself around October 2023 (my appointment to the CEO position was in March 2024): to gather all our employees in person once a month. Sugihara: That’s quite an undertaking, isn’t it? Masuda: Yes, it is. Once a month, we’ll spend the entire day together, talking about our philosophy and vision at least—and even if that’s all we talk about for the day, that’s fine. I made that decision around October, prepared extensively, and then gradually rolled it out starting around February 2024. This led to our monthly all-employee group training sessions. The purpose of these sessions is, first, for employees to have proper in-person dialogue. Then, based on the theme of the day, such as how to integrate one’s personal philosophy with the company’s, we deepen our discussions. After all, work is a part of life. If it’s not engaging, or if it deviates too much from one’s personal values, there’s no reason to remain a part of the community. So, through in-person dialogue, we design an exciting future together. And since the timing for this coincided with my appointment as CEO, I decided to deliver these messages myself, rather than entrusting them to an external lecturer. Before starting these training sessions, I had been running “Masuda School” for about three years. That was for volunteers, not all employees, but it was in person, so I stopped that and shifted to involving all employees. In addition to those changes, we also renewed our company logo and website. Sugihara: That’s wonderful. It takes courage to halt a full day’s operations to make something like that happen. Is there anything you chose not to change? Masuda: I didn’t change D-POPS’s historic “Creed”. While I’ve changed many things since taking office, those guidelines teach us what’s important as human beings, so for now, I intend to keep them as they are. The aforementioned “Creed” is displayed on this wall at D-POPS GROUP’s office in the Shibuya Hikarie Building. ◆Thoughts Behind the Updated Logo Sugihara: Could you tell us about the thoughts behind the revamped website and the new logo? Masuda: The idea behind the new logo design is our aspiration to be number one in whatever we do. Our corporate vision includes contributing to our customers, providing employees with a platform for self-realization where they can control their own lives, generating profit, and continuously contributing to society. With that in mind, there’s a strong desire to be “number one” in our chosen business, even if it’s a niche market. So, when you look at the logo, you’ll see a part that looks like the numeral 1 to represent “number one,” and another part that forms the letter D for D-POPS. Our corporate colors are predominantly blue, including shades like sky blue. Blue often evokes feelings of brightness and freshness, doesn’t it? But it’s not just that; the logo also incorporates the idea of the passionate heart and composure of a blue flame into our corporate colors. That blue 1 is actually supported by a smaller gray part. This signifies that in both life and organizations, it’s not just those on the front lines who achieve results; there are also those who are on the sidelines backing them up. Therefore, we aim to create an environment of mutual support. We, as a company, are committed to providing strong support, continuously expanding our capacity to do so. Within that framework, we strive to be number one, believing in the path we’ve chosen and the mission we must accomplish. That’s the vision we poured into creating the new logo. D-POPS Corp.’s logo   Interview conducted by D-POPS GROUP’s advisor Genta Sugihara.   D-POPS Corp. Company President and CEO: Shoto Masuda Address: Shibuya Hikarie Bldg. 32F, 2-21-1 Shibuya, Shibuya-ku, Tokyo Established: February 1998 Website: https://d-pops.co.jp/   Next, in the latter part of the interview, we discuss: ・Strategies in the current market conditions ・TOP1’s sales and proactive policies ・About the new product, “OTHEBES” ・Our soccer-related activities ・“Realizing a Venture Ecosystem” ・And other topics Be sure to check it out here: https://d-pops-group.co.jp/en/column/dpops-interview-latter-part/

Using Ideas to Solve Challenges with the Strengths of Both Systems and Creativity D-POPS GROUP has 23 group companies that we call partners (at the time of publication). For this article, we interviewed Hidefumi Miyahara, the CEO of idealump Co., Ltd, which joined D-POPS GROUP in December 2023. (This interview was conducted in December 2024.) This is the latter part of the interview. To read the first part, click the link below. https://d-pops-group.co.jp/en/column/idealump-interview-first-part/ ◆Flat-Rate Web Management Service “Web-tan-san” Sugihara: That’s wonderful. By the way, in April 2024, you released a flat-rate web management service called “Web-tan-san” (webpage in Japanese only). Could you tell us about the purpose behind this service and how it has been doing since its release? Miyahara: “Web-tan-san” was truly born from our clients’ needs and challenges. Right now, it’s a difficult time for any company in Japan to hire. This makes it especially hard for small and medium-sized businesses to hire a dedicated digital specialist. Let’s say, for example, a talented young person joins the company. They’re paid ¥300,000 a month, but then after three years, they say they’ve gained experience and quit. After the same thing happens three times in a row, of course these companies get tired of it. Everyone thinks this is deplorable, and I’ve seen many persons in charge, etc., getting desperate. This led me to think, Do these digital specialists really need to be in-house? Instead of paying ¥300,000 a month to hire someone, isn’t it good enough to simply spend ¥50,000 or ¥100,000 a month on an external service? That’s where it all started. Sugihara: That makes sense. For a startup that isn’t a large corporation, for example, it’s not practical to hire a full-time legal expert. Instead, they’ll contract an external law firm. From the perspective of a small- or medium-sized company, it’s difficult to hire a full-time person for a job that only requires 20% of a full-time worker’s hours. Miyahara: Exactly. On top of that, there are constantly new technologies and services coming out that you have to keep up with. Then, you realize you’ve forgotten a password or an ID, and you have to ask, “Who knows this? Who’s in charge?” Or, if a company with 5,000 employees has high turnover, subscription fees for accounts can add up quickly if they don’t manage them properly. There are so many people handling these kinds of “digital chores” on the side, in addition to their main job. My goal is to eliminate these chores. Sugihara: It seems like there’s been a huge need for this service, but why didn’t something like it exist before? Or did it? Miyahara: I’m sure similar services existed, but with the abundance of SaaS and other services available today, there weren’t really any people whose job was to manage all of it. Even if a person was in charge of these chores, they were also handling their main work, so it would take up a lot of their time. In that kind of case, we believe our Web-tan-san service is perfect! Sugihara: It seems like there’s a broad need for this service, not just among small- and medium-sized businesses. What kind of feedback have you gotten, and how has it been received since its release? Miyahara: The response has been very positive. It hasn’t been that long since we launched, but we’re steadily gaining new clients, which we’re grateful for. The interesting thing is, we thought it would only appeal to small- and medium-sized businesses, but large corporations have been reaching out to us, too. This usually happens when they’re reorganizing a department or restructuring their business. Also, things like endlessly registering products for e-commerce can be a bit like an administrative chore—it doesn’t necessarily require an IT professional. Tasks like those are better suited for BPO (Business Process Outsourcing) services, so Web-tan-san is definitely a great fit for those situations. ◆Company Culture Sugihara: Well, then we can certainly have high hopes for “Web-tan-san”! Also, we worked closely with you to create D-POPS GROUP’s website. Every member of idealump whom I’ve met until now has impressed me with how well they performed their job. Is that rooted in your corporate culture? Miyahara: Thank you very much! But actually, I don’t think that comes from our culture; our culture is actually quite chaotic, ha ha. Our members come from different countries, religions, ages, genders, and even have different customs. So our culture, in a good way, is about embracing this diversity and chaos. To properly utilize each individual’s unique qualities within that chaos, we’ve focused on “systematizing” our baseline. We have created a format for “doing things right”, so that anyone can do a good job if they just follow the format to a certain extent. Sugihara: That sounds just like you, President Miyahara. Miyahara: I started creating these formats about three years ago. Before that, we were all very free-spirited, and each person just did their best in their own way. But I eventually felt we’d reached our limit. It’s kind of you to compliment us as you did, but what we say to ourselves is, “Let’s systematize things to the same extent that McDonald’s does.” Sugihara: That’s a great idea. When we were working on the website, I added an unreasonable request for a T-shirt design, and your company ended up creating something wonderful. Could you tell us about the thoughts you put into the T-shirt design and a little bit about the behind-the-scenes process? Miyahara: Of course. When I first pitched the idea to the creative team, it went through the typical channels, but at first, because they were all very busy, the request got passed around like a hot potato, ha ha. Then, one of the female members of our creative team took the initiative, organized a group, and saw the project through to the end. Sugihara: I’m so grateful for that. The finished T-shirts have been very well received, and we’ve been swamped with requests for them from our group companies and the rest of our Ecosystem members. Thank you so much for creating such a wonderful T-shirt! ◆Impression of D-POPS GROUP Sugihara: You’ve worked on websites for various companies, and in the past year, you’ve collaborated with members of D-POPS GROUP. What is your overall impression of D-POPS GROUP? Miyahara: I find it incredibly more interesting now than before we joined. In fact, I’ve even thought that they should do a better job of promoting their attractiveness, ha ha. I’d always wanted to study business management, so I am very grateful for the numerous opportunities I’ve had to do so. I’m also thankful for the mutual support and the incredible opportunities I receive every day. Furthermore, I am inspired and stimulated by every single word and deed that I witness from the members of this group. ◆“Realizing a Venture Ecosystem” Sugihara: As stated in the tagline of the website you helped us create, D-POPS GROUP aims to realize a Venture Ecosystem. What would you like to do to help achieve this? Miyahara: There are many things, and they all relate to utilizing the digital domain. First, I want to create a portal site to activate communication within D-POPS GROUP. I feel that it’s a huge waste when the words of President Goto and the advisory team just get lost. I want to create a place where we can archive messages and go back to them whenever we need a reference. I’d also like a space where secondary communication and discussions can emerge from those archives. Sugihara: That would be very helpful. We often hear about shifting from a flow business to a stock business, but valuable internal information and comments still tend to “flow” away. Miyahara: Yes, that’s exactly it. A lot of valuable information just gets washed away, and I think that’s a waste. It’s definitely valuable to D-POPS GROUP, and it will be incredibly valuable to the next generation of entrepreneurs, too, so that’s my first goal. Another thing also relates to communication. Since each group company operates freely with its own unique identity, there’s an enormous number of communication tools being used (email, LINE, Slack, etc.). I think it’s fine for each company to use the tools they prefer, but I’d like to create a communication system that can serve as a central hub and connect to various devices. This is a very interesting problem because other large corporations, manufacturers, and companies with various supply chains also face this issue. It’s a problem everyone is struggling with. Sugihara: A key feature of D-POPS GROUP’s Venture Ecosystem is that each company can operate freely and independently, right? There’s no forced system unification after a company joins the group, and they can continue to run their business their own way. At the same time, if we could create a system where information can move quickly even while using different tools, that would be even better. Miyahara: This is exactly the same problem as the one that Web-tan-san addresses. There are too many tools, too many SaaS, and too many means of communication. When you get to a point where one person is using who knows how many different tools, a significant information divide occurs. There are some good aspects to this, but I think to realize a Venture Ecosystem, we need a platform that can streamline necessary communication. Sugihara: That’s a great point. There’s still so much room for development. ◆10-Year Vision Sugihara: Now, could you tell us your ideal vision for idealump 10 years in the future? Miyahara: To be honest, it’s not easy to predict the future, especially these days, and it’s hard to decide on a fixed vision for 10 years from now. However, as Chairman Semmoto mentioned the other day, we know that semiconductors and AI are the next big thing, and I believe some answers about what’s coming next are already out there. So, for us, it will be about leveraging AI and bridging the gap between the physical and digital worlds. There are many other things, of course, but our role will be to become a key digital player in those areas. When we reach a time when everyone uses AI as a matter of course, I believe that idealump’s strengths in digital solutions and service development will be crucial. Sugihara: That’s a great vision. What are the challenges you face in achieving it? Miyahara: There is nothing but challenges, ha ha! In the immediate future, I’m planning to rebrand our company website. The current idealump site was built eight years ago and is quite outdated. The company’s internal structure has also changed a lot since then, so I want to strengthen our branding over the next year or two and rebuild our educational systems. ◆Message to Readers Visiting Our Website Sugihara: Finally, could you share a message for our online readers? Miyahara: “Let’s work together and do our best!” I think there are many people within D-POPS GROUP who love to create things. The fun of being a startup company is creating the next thing that will add a lot of value, so I want to keep collaborating with everyone to create what will become our future culture, values, systems, services—anything, really. Interview conducted by D-POPS GROUP’s advisor Genta Sugihara. ◆Afterword: Group Company CEOs’ Retreat This past weekend, a retreat was held for the CEOs of D-POPS GROUP’s group companies, hosted by D-POPS GROUP’s President and CEO Kazuhiro Goto. The goal of the retreat, which took place in a beautiful location with an ocean view, was to enable the participants to clearly define their business strategies and to achieve personal growth as leaders. President Miyahara’s Insights: Thank you very much for this invaluable learning opportunity in a superb location, with delicious food and guidance from battle-tested professionals, led by President Goto. The fundamental knowledge I gained while basking in the great energy of such a wonderful environment was a precious experience that you can’t get from the internet or books. It’s something that I will cherish for my entire life. I was particularly struck by President Goto’s teachings on: 1. the importance of a CEO’s personal and professional growth, and 2. the need to be able to clearly define business strategies. Out of those, I was deeply impacted by his insights on the “three pillars”, and the three-stage framework of strategy, tactics, and combat. I was filled with a sense of both frustration and a strong desire to grow. For a while after I returned home, I couldn’t stop thinking about our business model, working on it day and night. I want to use what I learned as fuel to propel myself and my company to the next stage. I feel that using our digital capabilities to help realize the Venture Ecosystem will be a crucial turning point for both me and idealump, so I plan to keep pushing forward with everything I’ve got.   idealump Co., Ltd Company President and CEO: Hidefumi Miyahara Address: 4F Jingumae Asama Bldg., 6-18-13 Jingumae, Shibuya-ku, Tokyo Established: August 1, 2008 Website: https://idealump.com/ Free Site Diagnosis Service: https://idealump.com/webshindan/ Flat-Rate Web Operations Service: https://web-tantou.com/

Using Ideas to Solve Challenges with the Strengths of Both Systems and Creativity D-POPS GROUP has 23 group companies that we call partners (at the time of publication). For this article, we interviewed Hidefumi Miyahara, the CEO of idealump Co., Ltd, which joined D-POPS GROUP in December 2023. (This interview was conducted in December 2024.) ◆The Founding of idealump Sugihara: Today, we’re interviewing President Miyahara, CEO of idealump. Thank you for your time. First of all, congratulations on receiving a special award this month at D-POPS GROUP’s annual all-hands event. Miyahara: Thank you very much! Sugihara: Of course idealump’s performance was part of it, but I believe it was also an acknowledgement of your activities in the past year since you joined. For example, your company renovated the websites of D-POPS GROUP and other group companies, and you collaborated in various ways as well. Now, let’s get straight to it. Can you tell us about the journey that led you to found idealump? Miyahara: I founded idealump in 2008. I had been self-employed since around 2006…actually, at first, I was a starving artist. I composed music for idols and jingles for the radio. For about three years, I was living on only three or four hours of sleep a night, and I started to feel a bit depressed. This is awful, I thought to myself, but let’s keep trying to work in the music business anyway! However, because I didn’t have much life experience, my jobs started to disappear one by one, and before I knew it, I was making only 30,000 yen a month. I knew I couldn’t make a living like that, so I decided to try something else, and that something was being a professional planner. I knew I had to start by coming up with ideas, proposing them, and winning projects. I was very vague about what sort of planning I did, so I was involved in all sorts of things, like event planning, interior design for stores, and creating signs, pamphlets, flyers, and websites. It was then that I felt the most potential in website creation. 2008 was the year of the Lehman Shock, and while Yahoo was already around, flip phones still reigned supreme here. At that time in Japan, IT startups were barely beginning to emerge, but for some reason, that’s when I decided to start. To get projects, I just read one book on web direction and then relentlessly knocked on doors, ha ha. I read that book from cover to cover until it was practically falling apart, and drilled its contents into my head. It’s a bit embarrassing to admit, but sometimes the clients still knew more than I did. They would ask me things like, “How will you handle SEO?”, and I honestly had no idea. But I would simply say “I’ll do my best!”, and pick it up on the spot. Sugihara: That’s totally the venture spirit! Miyahara: It’s true, a lot of people who start a company in the IT field these days work at a major IT company first and then go independent. On the other hand, I had absolutely no precedent like that to work from. So, I had no friends or acquaintances in the IT industry back then; rather, most of my friends worked at construction companies, landscaping companies, and restaurants. ◆The Journey to Joining D-POPS GROUP Sugihara: You really started from the ground up. After about 16 years, your staff and sales were growing, and then about a year ago, you joined D-POPS GROUP. Could you tell us about that journey and the reasons behind your decision? Miyahara: The biggest reason was that I felt I had hit a wall with what I could do as a self-taught business leader. Just before COVID, our company had started to get a lot of work from government agencies. Many of those projects were set for delivery at the end of March, and we were expecting to see our sales grow. Then, around February, the pandemic hit. Suddenly, almost all of our projects, worth tens of millions of yen, had to be cancelled, and our sales plummeted. So, when April and May came and there was nothing to do, I decided it was time to pivot the business. Until then, most of our work had come from advertising agencies and media companies, focusing on digital campaigns and promotions. It was about making things as attractive as possible. But in the end, in terms of revenue, that kind of work was extremely volatile. So, I started thinking about returning to what I originally wanted to do: making things. That’s when the company’s foundation began to more closely resemble its current form, creating services and business solutions using systems and technology. That experience during the pandemic gave me a strong desire to learn more about management and focus on fundamental business principles. In the midst of all that, I felt I had reached the limit of what I could accomplish on my own, doing things my own way. When I thought about getting through the current era and about the remainder of my life, I wanted to do something more interesting, more fundamental, and bigger. I thought it would be a good idea for me to hang around people who could help me do that, so I started to meet with many different individuals, but out of all those encounters, the one with President Goto was the most memorable. I met with the CEOs of many companies, and most of them would start the conversation by talking about numbers, scale, and business plans. But President Goto was the only one who opened up by talking about mindset and philosophy. Only about 1 in 10 people would talk with me that way. That left a very strong impression on me, and I was drawn to him. I thought, “I want to work with this company! I want to learn about business management from him!” ◆Business Overview Sugihara: So that’s how it happened. Now, D-POPS GROUP has many companies, but can you tell us about idealump’s business? Miyahara: Our base is “digital manufacturing”. Within that, it’s important to us that we don’t just create things according to our own satisfaction, but rather focus on creating what customers request, providing services and solutions, and increasing their corporate value. President Goto often talks about the land, sea, air, and space strategy of D-POPS GROUP. In that analogy, I see idealump as a kind of weapons factory, in that we create the necessary tools to help the other group companies advance their strategies and work together with them to create new businesses. Sugihara: Over the past year, even within the group, you’ve been asked to do digital planning and website creation, amid other requests. Do you have your business broken down into specific categories? Miyahara: Honestly, we handle a fairly wide range of digital domains. We’ve expanded our diversity within the digital space rather than narrowing down our business, and there’s merit to that. However, not specializing in a single area also poses a challenge when it comes to management. Sugihara: In other words, instead of pinning yourselves down by saying “This is all we can do”, you listen to the client’s problems and then do your best to propose a solution that can be solved digitally. Miyahara: That’s right. The IT industry, in particular, changes very quickly, doesn’t it? For example, when flip phones gave way to smartphones, everyone focused on smartphone apps, and many app companies popped up. The next trend was social media, and a lot of social media companies were born, and then it was gaming. The speed of these changes is incredibly fast, so rather than trying to chase every trend, our approach is to propose the necessary solutions to solve our clients’ problems as they arise. ◆Company’s Situation During COVID-19 Sugihara: That’s a great approach. Did the pandemic that began in 2020 have a big impact on your company’s operations? Miyahara: Putting it simply, as I mentioned earlier, the work we were getting from advertising agencies at the time tended to be heavily focused on the creative side. Within that, we found that our ability to handle the system side of things, as well, came in handy. On the other hand, large system integrator companies are usually strong in developing systems but not so good at creative work. So, our skills in UI/UX were in high demand. That’s how idealump survived the pandemic: with a two-sided approach of having strengths in both creativity and systems. Sugihara: So, even during COVID, business was still active for large system integrator companies? Miyahara: Yes, that’s right. Companies that handle large-scale core system development operate on three- to five-year plans, so apparently their long-term projects kept moving forward even throughout the pandemic. ◆Market Situation Sugihara: Could you tell us about the current market now that the pandemic has ended? Is the overall economy on an upswing, has momentum returned, or is it pretty much the same? Is there any kind of tailwind now that COVID is over? Miyahara: It’s bounced back a bit, but in the IT sector, I feel like the market might dip again slightly in 2025. I think the areas of SES (system engineering service) and time-and-materials contracts will increase even more than they are now. So, if you miscalculate how to obtain projects and contracts, it could be a tough situation. At the same time, I believe there will be opportunities for those who can provide high-quality services. ◆Strong Points Sugihara: I see. So, what would you say are idealump’s key strengths? Miyahara: One of our key strengths is our history of over 10 years of providing one-stop digital manufacturing. We’ve built a wide range of digital solutions across various industries, from entertainment to finance, and we now have a track record of over 1,000 projects. I feel that this experience and expertise is another one of our strengths. Also, there aren’t many companies of our size that can effectively blend both systems and creativity to create high-quality, one-stop web services, so I think that’s also a key strength. Furthermore, we have quite a few global team members, so we are strong in Japanese, English, French, Arabic, and other languages. I believe that having many successful cases with global projects is another unique aspect of our company. Sugihara: That’s very global! Was that by chance, or did you intentionally pursue it? Miyahara: Actually, our globalization started as a way to solve the problem of who would join a small startup like ours, which began with only two or three people. Over 10 years ago, it was difficult to recruit talented Japanese people, so we decided to try and hire talented foreigners—talented global talent. That was the trigger. Sugihara: How many employees do you have now? Miyahara: We have about 50 people in our Japan office right now. Of those 50, about 20% to 30% are international. Sugihara: I always had the impression that you were a very logical and analytical person because of how meticulously you seem to work, but now that I’ve had the chance to hold a conversation with you, I feel that you’re surprisingly warm and personable. What sort of leader do you consider yourself to be? Miyahara: Hmm, that’s a good question…but I don’t really like to be in the spotlight, so I guess I could say I’m the kind of leader who focuses on supporting everyone else. I’m also the kind of person who hopes everyone can have fun. Continued in the next part. Interview conducted by D-POPS GROUP’s advisor Genta Sugihara.   idealump Co., Ltd Company President and CEO: Hidefumi Miyahara Address: 4F Jingumae Asama Bldg., 6-18-13 Jingumae, Shibuya-ku, Tokyo Established: August 1, 2008 Website: https://idealump.com/ Free Site Diagnosis Service: https://idealump.com/webshindan/ Flat-Rate Web Operations Service: https://web-tantou.com/   Next, in the latter part of the interview, we discuss: ・Their flat-rate web operations service, “Web Tantou” ・idealump’s atmosphere and culture ・Impression of D-POPS GROUP ・“Realizing a Venture Ecosystem” ・idealump’s 10-year vision ・And other topics Be sure to check it out here: https://d-pops-group.co.jp/en/column/idealump-interview-latter-part/

Steering towards selection and focus to grow the company while refining empathy and co-creativity D-POPS GROUP has 23 group companies that we call partners (at the time of publication). For this article, we interviewed Mamoru Nagaoka, the CEO of TFN, which joined D-POPS GROUP in 2018. This is the latter part of the interview. To read the first part, click the link below. https://d-pops-group.co.jp/en/column/tfn-interview-first-part/ ◆Selling Off a Business Sugihara: I see. So, could you tell us more about the sale of that telecommunications business? Nagaoka: I started thinking about selling the telecommunications business around January of this year (2024). I had been re-evaluating our business and considering how to grow it, and the idea of selling the telecommunications business, as I mentioned earlier, crossed my mind. When we actually started moving on it, it was June. Actually, I had proposed the idea to President Goto once before, when the telecommunications business took a massive hit during the pandemic. I told him that the industry itself was doing poorly, and since we didn’t know when things would return to normal, simply holding on to it was a risk. At the time, he had a contrary opinion, so I figured that it probably wasn’t a good idea after all. But this year, I proposed it once again. Now, I had already made up my mind, so I decided to convey my thought process to him once more, regardless of what President Goto’s opinion would be, and he ended up saying, “That’s a good idea.” Of course, this time, my thinking wasn’t that we were selling this business simply because it was failing. Rather, we decided to sell it because we had encountered another company we felt could help grow that telecommunications business. Sugihara: Ah, so the selling of this business was about selecting your focus. What is the business you’ve decided to focus on now? Nagaoka: The mobile accessories business within e-commerce, only. We currently sell a variety of things like bicycles and suitcases, but the ultimate plan is to consolidate it all into mobile accessories. And whether it’s our company’s own products or those we procure from other companies, we intend to fully capitalize on them. Right now, what we prioritize most in the e-commerce business is customer success. It’s obvious that we need to make things quickly or create good products; I believe the ultimate goal is for the product to reach the end user and for them to become a fan of our brand. So, if we’re going to do manufacturing, it’s important to become number one in sales or the market, but I also want to move toward a mindset of delivering better products. Sugihara: Here’s one thing I find distinctive about TFN’s business: you’ve obtained the rights to create designs for some well-known places, haven’t you? Nagaoka: Yes, indeed. Currently, the companies that are cooperating with us as suppliers are the original rights holders. We collaborate with them on everything from product development to market strategy. So, our approach is not to simply keep everything within our own company, but to partner with a variety of manufacturers and suppliers. Then, going back to what I was saying earlier, since we internally develop our own tools for market research and sales analysis, we’re able to give better feedback to the manufacturers. This means that we can provide a more thorough, or different, kind of report than a typical retailer or vendor. I feel that being able to do that creates a good synergy. ◆Company Culture Sugihara: Thank you. So, my next question is, what is the culture and atmosphere like at TFN? Nagaoka: In the beginning, I was told by a then-advisor to TFN, who had previously served as an executive director at SoftBank, “Empathy and co-creation will become absolutely essential from now on. If you don’t have something that customers feel is good or that they can empathize with, you definitely won’t go anywhere.” At that time, our user reviews were honestly not very good. From that point, we decided that we would prioritize “empathy and co-creation”—in practical terms, how we would face our customers and how we would improve—and the company changed a lot. So now, within TFN’s culture, we value focusing on the customer above all else. For example, when it comes to corporate clients, we make a point of meeting with them in person and not making decisions based on assumptions. We place a lot of importance on that. Of course, we look at the data from our system that I mentioned earlier, but we are very careful to act only after making a proper judgment based on both the data and the facts we gather from meeting in person. Sugihara: That’s a wonderful culture. My next question is, could you tell us about any initiatives you've undertaken since joining D-POPS GROUP, and what benefits have come from being part of the group? Nagaoka: I think this probably varies from person to person, but for me, the biggest benefit was learning a new way of thinking. I believe this holds true within my own company as well: whether a person acts or not, or what they choose to do, ultimately depends on their own will. For example, I was the one who decided to join D-POPS GROUP. It wasn’t a decision made for me by someone else. This is a concept that I really value in my own company. By joining D-POPS GROUP, the scope of my judgment and thinking expanded. For instance, the way I now think about things when the company falls into a deficit is fundamentally different from before. But that doesn’t mean the old way of thinking was wrong; it’s just a different perspective. I believe it’s up to the individual to interpret these concepts. President Goto is quite well-known within the EO (Entrepreneurs’ Organization), and I've never heard anyone speak badly of him. With most people, there’s always at least one person who has something negative to say about them, but I’ve never met anyone who holds a grievance against him—not even once. I think that’s a bit of a miracle. I am grateful for the environment where I can learn a mindset and philosophy from someone like that. President Goto trusts my company, regardless of whether it’s in the red. But because he trusts me, there’s also a certain pressure to perform, ha ha. Having him around definitely keeps me on my toes. Also, the fact that he entrusts everything to the CEO of each group company is another merit. It’s really surprising just how rarely he visits each group company, ha ha…but nevertheless, he’s watching the numbers extremely closely. ◆“Realizing a Venture Ecosystem” Sugihara: He’s definitely watching them, ha ha. Now, D-POPS GROUP has the goal of “realizing a Venture Ecosystem”. In light of this, have you collaborated or done business with other companies in the group? Nagaoka: Not really, yet. However, just recently, someone from another group company came to our office to learn about e-commerce. Their president suddenly contacted me and said, “I’ve always wanted my company’s members to try their hands at e-commerce, so I’d like to send someone over. You wouldn’t need to worry about teaching them; instead, could you just let them learn by doing menial tasks?” So, a person came to our company, and they truly worked hard, asked our employees countless questions, and of course, I gave them advice as well. In the end, they must’ve generated about 1 million yen in sales. They didn’t conduct a formal P&L statement regarding the exchange, but their president was simply pleased to see the member’s growth. In an ordinary business partnership, we probably would’ve negotiated a service fee or something similar, but this kind of apprenticeship was made possible by both of us being a part of the same D-POPS GROUP. Also, I myself am not really the type to be taught things; I’m more of the type to just watch and learn. So, just listening to the reports at the management meetings is a great learning experience. I also make sure to keep a close eye on the same companies that President Goto is watching. Ultimately, I believe that M&A and CVC arrangements won’t succeed without a good business model. President Goto is constantly thinking about this, so I feel like if I look at the companies he chooses to invest in, I can reverse-engineer some answers to the question, “What is a good business model?” Looking at it from that perspective, you can start to figure out what kind of business models he’s currently paying attention to. Maybe it’s because of the type of person I am, but whenever I meet President Goto, he gives me a book. What’s amazing is that he always seems to choose the very book that I need at the moment. So, I always make sure to give him my thoughts on the book after reading it. I think he’s able to sense what I’m struggling with from his own experience, and he gives me those books and provides me with spot-on advice. ◆10-Year Vision Sugihara: Thank you. Now, could you tell us your ideal vision for TFN 10 years in the future? Nagaoka: Something I’d like to do someday is group management. I have a feeling that’s where I’ll end up. When I look at other entrepreneurs, some are growing their companies with just a single business, but I think it’s quite difficult to build a company worth hundreds of billions of yen with only one business. For example, even in the restaurant industry, you probably can’t create a trillion-yen company with a ramen shop. When I joined the group, D-POPS was primarily a mobile phone shop business, and now they are in a completely different place: creating a Venture Ecosystem. But when I look at the movements and developments of D-POPS GROUP, I think what President Goto is doing is probably the best possible way for a business owner to grow their company. So, while I don’t know if it will be three, two, or five companies, I’d like to create a structure where, for example, we have the e-commerce business we’re doing now at TFN, and then we branch out into corporate sales of smartphones, or make system development a separate entity, or maybe even become an e-commerce agency. That way, even if the e-commerce business doesn’t do well, we could be successful in system development, or the e-commerce agency company could be profitable, allowing us to help each other out. That’s something I want to build. I think that’s what I want to accomplish over the next 10 years. We’ve just started to draw up the blueprints for this. We recently held a training camp for our management team, and we used it as an opportunity to reconsider our mission, vision, and values, to align our perspectives, and to think about things like our compensation and benefits. If, for instance, the executives who are with me now one day were to form separate businesses and create TFN’s own unique group structure, I feel like that would be great. I’m not trying to simply imitate D-POPS GROUP, either. Honestly, when we sold the business this time, even though we were the ones selling, I couldn’t sleep properly for about two days before the money was transferred, ha ha. I was really not in good spirits in October, but after seeing President Goto face-to-face yesterday, my mood lifted. Doesn’t President Goto have such excellent fortune? I feel like just being around him makes me feel so energized; I was getting a lot of energy from him. Sugihara: President Goto really does seem to have an incredible presence flowing around him. Nagaoka: He really does. And the title of the book he gave me yesterday was Luck, so I thought, “This has  to be interesting.” It makes me think that these kinds of coincidences do happen. President Goto really does have great luck...he seems to exemplify the so-called “Law of Attraction”. ◆Message to Readers Visiting Our Website Sugihara: Finally, in closing, could you share a message for our online readers? Nagaoka: What I’m aiming for right now is definitely to build a truly good company. Although I don’t yet have a clear definition of what a “good company” is, my mission right now is to figure out how to build one, having joined the group and absorbed so many various ideas. But, I was able to get to this point because joining the group and learning new ways of thinking and so much about personal development were hugely significant for me. So, even though President Goto is incredibly busy, if you see him in town, you have to try and talk with him! Even better yet, capture him like a Pokémon. He won’t talk to you unless you catch him first, ha ha!   Interview conducted by D-POPS GROUP’s advisor Genta Sugihara.   TFN Company President and CEO: Mamoru Nagaoka Address: 1F Asano Higashi-nihonbashi Bldg., 2-27-8 Higashi-nihonbashi, Chuo-ku, Tokyo Established: November 25, 2015 Website: https://tfnmobile.com/

Joining the Group and Getting Appointed as Leaders: One Year of Facing Challenges Head-On D-POPS GROUP has 23 group companies that we call partners (at the time of publication). For this article, we interviewed Kazuya Taniguchi, CEO of A&K.com Co., Ltd., and Yasuyuki Kubota, the Managing Director of A&K.com Co., Ltd., which joined D-POPS GROUP in 2023. ◆The Path to Joining D-POPS GROUP and Assuming Leadership Sugihara: Today we’re interviewing President Taniguchi and Managing Director Kubota of A&K.com Co., Ltd. Thank you for your time. A&K.com became part of D-POPS GROUP in December 2023, right? Originally, the founder was still with the company, but after joining the group, the leadership baton was passed to the two of you. Could you tell us about that journey? Taniguchi: I had heard that they were considering an M&A. Actually, our company had been in talks with another M&A deal a year earlier, but it fell through. After that, I wasn’t really aware that similar talks were happening again, until around September 2023, when the M&A discussions became more concrete. One of the candidate companies we were asked to meet with was D-POPS GROUP. So, Mr. Kubota and I came to the headquarters here at Shibuya Hikarie and met with President Goto. But at the time, we just saw D-POPS GROUP as one of our many options. Then, around November, we were told, “The M&A deal with D-POPS GROUP has been decided.” To be honest, we were shocked. Right after that, the founder said he would be stepping down. We asked, “What about the future management of the company?” In response, he said, “I’d like you, Mr. Taniguchi, to be CEO and Mr. Kubota to be managing director to lead the company going forward.” We were surprised, but the thought of saying something like, “In that case, we’ll quit, too” never crossed our minds. All we said was, “We’ll do it.” However, even though we agreed to become CEO and managing director, we had absolutely no experience running a company, so the period after the transition was a bit of a challenge. Sugihara: That must have been a huge shock. Before, you were both executives—the heads of the sales and administrative departments. You were essentially running the day-to-day operations. So after it was decided in December that you would become CEO and managing director, what kinds of changes did you experience in the following months? Taniguchi: The first thing we tackled was confirming the financial figures. Before that, we had a grasp of the gross profit, but only the founder was aware of the operating profit. So, we had him disclose everything, including information we had never seen before, and we meticulously went through all of it. We also worked with the founder to understand the bank loans—what they were for and when they had to be repaid. Still, there were parts of the company’s financial situation that we couldn’t figure out, so we’ve had to consult with our tax accountant on an as-needed basis to this day. Sugihara: What about you, Mr. Kubota? How did you feel about the M&A and taking on leadership? Kubota: Well, as President Taniguchi said, seeing the financial side of the company for the first time was the most illuminating part, but it took time for me to fully understand the big picture. Also, right after the contract was finalized, we were told that we needed to give a speech at D-POPS GROUP’s annual all-hands event on December 6, 2023. We had just signed the contract and were in the middle of a confusing transition, so to be asked to give a greeting and company introduction as new executives was a bit overwhelming, ha ha. ◆Impression of D-POPS GROUP Sugihara: It’s been about ten months since you joined the group. What’s your impression of D-POPS GROUP now that you’re a part of it? Taniguchi: When we first joined, I honestly wasn’t sure how to proceed. There are many group companies, and I was unsure how to communicate with all the different CEOs and other members. But now, I’ve had the chance to communicate with many of the CEOs and other people in the group, and we’ve built strong relationships. The next step is to figure out how to leverage and connect these relationships within the Venture Ecosystem. It’s also been great to be stimulated by the younger members. Our younger team members also feel more motivated because of the M&A. What about you, Mr. Kubota? Kubota: I realized that I had a narrow perspective since I had been doing a lot of things my own way. Now, talking with the leaders and members of various companies and hearing all the interesting topics and information they share has really broadened my horizons. I’ve also come to the realization that there are things we need to improve professionally, rather than just doing them our own way. Sugihara: I hear you have regular meetings with other group companies, such as those in the human resources field. Since you’re more senior, is there anything you’ve been able to teach them? Kubota: Sure. Regarding hiring, we’ve always used advertising media, whereas I heard that the other group companies tend to use recruiting agencies. So, we’ve shared our methods and the platforms we use for advertising-based recruiting. Some of the other group companies have even decided to boost their advertising efforts because of what we shared. Sugihara: It’s great that you can learn from each other. I hope collaborations like these will continue to increase. Taniguchi: I agree. I hope we can use the flows within our Venture Ecosystem to think about how we can share and connect talent within the group, for example. I also hope we can collaborate on hiring as a whole group. ◆A&K.com’s Business Overview Sugihara: Thank you. Next, could you give us an overview of A&K.com’s business? Taniguchi: We are a human resources company that operates on four main pillars: temporary employee placement, staffing services, business outsourcing, and sales promotion events. Our clients include major electronics manufacturers, electronics retailers, and telecommunication companies. We originally started by mainly providing staff to sell consumer electronics at mass-market retailers, and our business has expanded from there to what it is today. Sugihara: Now that you’ve taken over the company and are running it yourselves, what things have you changed or kept the same in the last ten months? Taniguchi: I believe that, fundamentally, nothing has changed. I’m doing the same things as before, but as I mentioned earlier, now that I’m a business leader, I’ve started to look more closely at the company’s operations and management, including the financials. I’ve come to think more deeply about what needs to be cut and how. Right now, I’m at the stage where I’m focused on the cash flow and thinking about what we need to do to make an investment. Sugihara: What about you, Mr. Kubota? Kubota: I’d say the same—fundamentally, nothing has changed. On the contrary, you could almost say I’m making a conscious effort not to change. I’m still hands-on with the practical work, keeping a close eye on everything, and talking with employees face-to-face. I’m trying to make sure that my attitude doesn’t change just because I’m a business leader now. I have changed one thing, which is that I no longer come in first thing in the morning. I’m being more conscious of things like trying not to put much pressure on our employees, so I thought it was better to be a bit more flexible with my time. Sugihara: How many core members are there at A&K.com? Kubota: There are 40. Sugihara: When you decided to move forward as the new leaders, there was a possibility that some people would leave. How many of those 40 did you believe would stay with you through the changes? Kubota: Every single one of them. Taniguchi: This “40 people” refers to our regular full-time employees, so our commitment to working together with them hasn’t changed. Our headquarters has just under 20 people, and our first goal is to boost their motivation. We reorganized the team starting this October, so things are settling down now. Sugihara: Things often change after an M&A. The new system doesn’t start at 100% from the very next month, and it seems like it took your company about ten months to get settled again. I look forward to seeing what you’ll do next. ◆Trends in the Temporary Staffing Industry Sugihara: Are there any trends in the worlds of temporary employee placement, staffing services, business outsourcing, or sales promotion events? Is the HR industry itself facing headwinds or tailwinds? Taniguchi: More of a headwind, I’d say. As you know, there’s currently a talent shortage in Japan. There’s plenty of demand, but our supply just can’t keep up. In terms of recruiting, there’s a strong sense that everyone is competing for the best talent, and a lot of companies are relying on referrals. It feels quite challenging. There are a lot of jobs (demand), but not enough talent (supply). Sugihara: I wanted to ask about that, too. There are plenty of jobs because there’s a need for them. When I think about event hosting, you can buy anything online these days, but I don’t believe the experience of buying something in person while receiving an explanation from a staff member will ever completely disappear. So, from that perspective, are manufacturers’ requests for staff continuing? Taniguchi: Yes, they are. I believe the desire to make in-person purchases hasn’t changed. Kubota: Also, electronics retailers are changing a lot. They are shifting to a lifestyle-focused approach and even co-opening stores with restaurants and apparel brands. In that sense, I feel that places where people gather are becoming more specialized and centralized. The electronics and telecommunications industries are relatively stable, and based on the information from our clients, I believe demand will continue. Sugihara: You had a tough time during the pandemic, didn’t you? Taniguchi: Not necessarily. There were things like temporary store closures, but with the support and measures in place during the pandemic, we were able to get through it. At that time, electronics retailers were considered to handle all-around lifelines, so their operations had to continue. Sugihara: Where have you felt a headwind in A&K.com’s recruiting efforts? Kubota: Our staff ranges from veterans to mid-career and young employees. So in the electronics sector, we have many people in their 40s and 50s and even those over 60. Products and services in both the telecom and electronics industries are becoming more complex. And generally, sales and marketing jobs are seen as a bit less…appealing to job-seekers these days. Taniguchi: On the other hand, if we can’t gather enough people for temporary staffing, we have to deal with the challenge of generating revenue from other business areas. If we choose to focus on outsourcing instead of temporary staffing, we usually end up relying on various other partner companies, who then provide us with the necessary staff to generate sales. While this brings in revenue, our profit margins get stretched thin, so we have to figure out how to return to our original business model at some point. Kubota: Another area is utilizing foreign workers. They often have vast networks. If we can provide them support with communication and employment, I bet we can create a system where our talent increases through referrals. Sugihara: What methods are you devising now to tackle these difficulties in recruiting? Kubota: We’re focusing on three things. First, we’re building our own recruiting website to reduce our reliance on expensive advertising platforms. Second, we’re strengthening our system for referral recruitment, especially for foreign nationals, as I mentioned earlier. And finally, we’re focusing on recruiting new graduates. We have seven new graduates scheduled to join us in April 2025. We have a system where they start in the field to gain industry and practical experience, which then strengthens our on-site teams before they move to a position at headquarters. ◆About the Generational Gap Sugihara: This is a topic we just touched on, but in D-POPS GROUP, which has many younger members, do you ever feel a generation gap? If so, what do you do to address it? Taniguchi: Yeah, of course there’s a generational gap, but I make sure to pay attention to how I’m providing guidance. I’ve learned from experience that the old ways of teaching and giving feedback just don’t work anymore, ha ha. So, I’m constantly thinking about how to approach that. I also know that saying nothing at all isn’t good, either, so a big part of my job is navigating the balance between giving people too much and not enough guidance. Kubota: In that sense, I try to be perceptive and figure out what each person wants or needs. For example, I try to figure out if they’re the type who does want strict guidance or if they’re the type who would prefer a softer approach. Most of our employees prefer the latter, but some of our younger members want to rise quickly through the ranks, so I always try to make sure I don’t use the wrong method of communication. Sugihara: And as the roles of CEO and managing director were so suddenly dropped in your laps, even though there will be times when either of you makes a mistake, I’m sure the team members must be inspired just by seeing the two of you taking on the challenge. Taniguchi: Well, I’d be grateful if they felt that way. But honestly, I’ve sometimes wondered if it was a complicated situation for them. For the employees, their company suddenly changed due to an M&A, and the founder and CEO stepped down. I have to think that they were caught off-guard just as we were, but in a different way. When we talked to the team members later, it was clear that many of them felt that way. Sugihara: Let me ask a different question. D-POPS GROUP is filled with an entrepreneurial spirit, and many young members are interested in starting up their own companies. Have you noticed any changes in your own employees after joining a community with that kind of environment? Kubota: That’s true. For example, in our recruiting meetings, I’ve felt a sense of competition—a feeling of wanting to be the best. It’s also probably due in part to D-POPS GROUP’s “free agent” system, which allows members to be temporarily transferred to other companies within the group. We’ve also seen some people discover new things, such as the proactive individuals who began participating in the employee stock ownership program. ◆On Realizing a “Venture Ecosystem” Sugihara: I see. It’s been a year full of a lot of changes. Now for an important question: What are your initial feelings about realizing the “Venture Ecosystem” that D-POPS GROUP is striving for? Taniguchi: I think it’s a great idea. As for what we can do to contribute, since it’s an Ecosystem within the group, we can provide our personnel to other group companies. As a related example, I heard that D-POPS has a system for training their mobile phone shop staff, so we could send our new recruits and current employees to participate in their training, and vice versa. I think that’s one good aspect of being part of the Ecosystem. Another aspect would be in the area of digital transformation. Our company isn’t very strong in DX, so I’d like to consult with other group companies about where and how we can get help with that. Kubota: From my perspective, starting a business always comes with a risk of failure, so I feel like there’s an unwritten rule that members of a Venture Ecosystem should come to each other’s aid when there’s a problem or things aren’t going well. It’s not always going to be easy, so it’s good to be able to support each other during difficult times. Sugihara: That's a very encouraging comment. So, what is A&K.com’s ideal vision for 10 years from now? Taniguchi: We definitely need to focus on developing our talent. I want to increase the number of new core members, so that’s one priority. Honestly, I don’t know what the electronics industry will look like in 10 years. The telecommunications industry will likely remain stable, but we can’t see what’s coming. We’ve always relied on these two pillars, so we’ve always faced the perpetual issue that they may not be enough by themselves. I don’t think we can grow any more without adding one or two more big pillars. So, I hope that in 10 years, we’ll have more pillars and have increased our sales beyond the 3-billion-yen mark we’re aiming for over the next three years. Sugihara: That’s a fantastic goal. What are the challenges you face in achieving it? Taniguchi: I’d have to say our main challenges are in our ability to recruit and our sales capabilities, as well as the talent development I just mentioned—how we’re going to tackle that. Also, in the midst of this current age of diversity, I want to make A&K.com a company that people feel a sense of loyalty toward. It’s great that employees can be transferred within the group, but I hope we can increase the number of members who feel a strong connection to A&K.com. ◆Message to Readers Visiting Our Website Sugihara: Finally, could you share a message for our online readers? Taniguchi: I’d like to take this opportunity to address the members of A&K.com. I am currently 54 years old, and I am still giving it my all. I’m doing my best not to lose to our younger members, so if you see this and feel inspired to try even harder, I’d be very grateful. Kubota: I agree. Now that we’ve become part of D-POPS GROUP, I hope our members see this as a chance to take on challenges and seize new opportunities. I also want to mention that everyone in D-POPS GROUP is so bright and cheerful. I’m sure they face many hardships, but they always have a positive attitude, and I never hear them say anything bad about anyone. They always greet everyone with a smile, and I really want to learn from that. I love that kind of atmosphere, and I want A&K.com to become like that, too. Interview conducted by D-POPS GROUP’s advisor Genta Sugihara. ◆Afterword: Group Company CEOs’ Retreat The other day, a retreat was held for the CEOs of D-POPS GROUP’s group companies, organized by D-POPS GROUP’s President and CEO Kazuhiro Goto. The goal of the retreat, which took place in a beautiful location with an ocean view, was to enable the participants to clearly define their business strategies and to achieve personal growth as leaders. President Taniguchi’s Insights: (January 20, 2025) Thank you very much for the opportunity to participate in the group company CEOs’ retreat. I am extremely grateful that I could have such a valuable and stimulating learning experience in my role as a business leader for the first time after the M&A. I will work hard every day to ensure that I don’t just let this knowledge sit there but instead put it into action and make things happen. The environment was also amazing, with perfect weather, a beautiful location, great scenery, delicious food, and fresh air…everything about it was deeply moving, from start to finish. Most of all, after being able to absorb all of that positive energy and then take it home with me, I plan to use that energy without letting it dwindle and keep strengthening it. At the retreat, I learned a lot of stimulating things, especially about the importance of a leader’s personal growth, how to clearly define a business strategy, the significance of setting the “three pillars” to achieve it, and how to attract good fortune. I intend to organize each of these lessons in my own mind and make every effort to put them into practice. I will put all of my effort into helping A&K.com to accelerate its rotation as one gear in our machine, in order to expand the circle of our group’s Ecosystem. I also had the chance to hear the different ways of thinking, challenges, and concerns of the other group CEOs. The discussions we had and the numerous pieces of advice from all the advisors were great learning opportunities for the future. It was an amazing retreat. Thank you very much! A&K.com Co., Ltd. Company President and CEO: Kazuya Taniguchi Address: 3F/4F Shinjuku Hikari Bldg., 5-16-11 Shinjuku, Shinjuku-ku, Tokyo Established: January 2001 Website: https://www.a-kcom.co.jp/

Steering towards selection and focus to grow the company while refining empathy and co-creativity D-POPS GROUP has 23 group companies that we call partners (at the time of publication). For this article, we interviewed Mamoru Nagaoka, the CEO of TFN, which joined D-POPS GROUP in 2018. ◆Background of TFN’s Initial Establishment Sugihara: Today, we’re interviewing President Nagaoka, CEO of TFN. Thank you for your time. It’s been nine years since TFN was established. Could you start by briefly telling us about the circumstances surrounding TFN’s founding and your career leading up to it? Nagaoka: Yes. I founded TFN in 2015. Around 2011, when I was working at SoftBank C&S, I first encountered cloud SIM technology. At that time, I explored various options to launch a business, perhaps as an in-house venture, but I eventually gave up on the idea. Then, around 2013 or 2014, I came across cloud SIM again, and I had a strong desire to pursue it as a business. That, combined with my aspiration to become an entrepreneur, led me to leave my ordinary job and start my own company. So, while e-commerce is our main business now, my primary motivation for leaving my previous job wasn’t to do e-commerce, but to pursue the cloud SIM business. Sugihara: I see. When did TFN ask to join D-POPS GROUP? Nagaoka: In 2018. Sugihara: You mentioned that the company started out working with cloud SIM technology. When did you begin the e-commerce business? Nagaoka: The reason I encountered cloud SIM in the first place was that I was in charge of distribution at SoftBank C&S. During my time as a salaryman, which was quite long, I played a trading company-like role in various product sales, so many manufacturers would come to us with proposals. Encountering cloud SIM was part of that. At the same time, I was also dealing with various manufacturers of smartphone cases, PC supplies, and so on. So, while cloud SIM was the main focus, I also had a feeling that e-commerce would become popular. So I thought, “Let’s do this business too!” and launched it alongside cloud SIM. Sugihara: That makes sense. So, people you knew from your SoftBank days supported you, then? Nagaoka: That’s right. After I became independent, many business partners besides those related to cloud SIM supported me. Among them, there are still companies that I had relationships with even before I started my business nine years ago. Naturally, I could also go to China myself to manufacture products and handle direct negotiations. So while we certainly have many new vendors, whether for domestic procurement or direct purchasing from overseas, there are occasions where I get introductions through connections I made back then. ◆Business Overview Sugihara: That’s a huge asset, isn’t it? Next, could you briefly introduce TFN’s business overview? Nagaoka: Currently, it’s almost entirely focused on the e-commerce business. As for products, we’re targeting smartphone accessories. The total period we were involved in the cloud SIM business, which I mentioned at the beginning, was six to seven years, but we’ve now pivoted and are concentrating on the e-commerce business. When we first started, we launched the company with both cloud SIM and e-commerce businesses. Operating a telecommunications business requires enormous capital. However, I was quite inexperienced as an entrepreneur, so my initial capital policy didn’t go well. At that time, I personally reached out to Mr. Watanabe, who is now a Managing Director at D-POPS GROUP, to ask him to join TFN as a director so that we could benefit from his business-related counsel. As a result, we also received an offer to join D-POPS GROUP and further grow our telecommunications business as a partner member. At that time, there were not so many group companies within D-POPS GROUP. There were a few CEOs who had originally belonged to D-POPS GROUP and then started their own group companies, but we were one of the very first companies to join from outside of D-POPS GROUP. Sugihara: I see. Perhaps that was one of the catalysts for the idea of a Venture Ecosystem that D-POPS GROUP is now aiming for. Nagaoka: That’s right. That’s how we were operating the cloud SIM business as a D-POPS GROUP company, but when we considered how to grow it further, President Goto proposed an M&A of a company that handles rental WiFi. What impressed me at the time was that he gave me three books about PMI and so on, and then I met the CEO of the M&A target company, and after that, it felt like President Goto was expecting me to make the decision myself. Honestly, at that moment, I thought it was an unreasonable request, but I read all the books; handled the negotiations myself; drafted the contract; then, even though D-POPS GROUP had enough money, my company found our own investors; and finally, the contract was successfully concluded. About half a year later, we took over ‘any-fi,’ a rental WiFi business that was originally part of D-POPS GROUP, and ran a rental router store on Miyamasu-zaka in Shibuya. From that point on, we gradually leaned into our WiFi business more and more. On the other hand, the e-commerce side had steadily increased its product lineup since the company’s inception. A characteristic of our company is that we proactively incorporated DX and IT as part of our corporate culture, so we developed our e-commerce system in-house from an early stage. I feel that this has supported our growth. Sugihara: And then came COVID-19? I heard that your purchasing business was started during the COVID era. Nagaoka: Yes. Before COVID, both telecommunications and e-commerce were growing steadily, and just when we had acquired the telecommunications business through M&A and the numbers were quite steady, we entered the COVID era. It had been less than a year since the M&A, and within a month after the pandemic started, our P&L was in the red by about 40 to 50 million yen. I truly didn’t know what to do. I still remember it now…I called President Goto and consulted with him, saying that the company was in a big deficit and we were even considering layoffs. At that time, President Goto said something like, “So you’re a president who cuts people, that’s all you can do, eh?” No way, I was thinking about how to get TFN back into the black, for the sake of the group, and layoffs were only a part of that idea. But President Goto had a slightly different perspective. He told me, “It’s easy to lay off employees, and it would probably be easy to get back into the black immediately that way. But on the other hand, if you do that once, you will only ever be a CEO who does that. That will follow you for life…are you okay with that? And employees will also see you as a CEO who lays people off. So, maybe you should think about how to grow the company instead.” Fortunately, the e-commerce business sold reasonably well due to the stay-at-home demand during the pandemic. So, although the telecommunications business was almost at zero, we managed to get by somehow. But it was incredibly tough. Anyway, there was nothing else to do but start something new, and the fastest option was to drastically increase the number of products in e-commerce. At that time, Mr. Watanabe and I were trying to somehow increase our suppliers, and increasing suppliers meant handling home appliances. We focused on how to get products from famous manufacturers, but no matter how many introductions we received, no one would sell to us. I was thinking, “This is bad.” But there are quite a few people selling home appliances in the world. So I thought there must be something to it. It was then, purely by chance at a drinking party, that someone’s words caught my ear: “I’m into ‘Poi-katsu’.” I asked, “What’s Poi-katsu?” And they replied, “It’s buying things, earning points, and then selling them on Mercari or other platforms.” I said, “That’s amazing. How much do you make a month doing that?” And they casually replied, “About 500,000 yen.” I thought, “If I had ten people like this, my company could recover!” So at that point, I started investigating. I went directly to our current business partners and various e-commerce companies that handle home appliances, sticking around for hours, constantly observing, trying to figure out where they were getting their supplies. I realized that it wasn’t a usual supplier. From there, digging into various information on social media and elsewhere, I eventually arrived at the conclusion that they were purchasing and reselling goods. From that point, things moved fast. The website was completed in a week, and we said, “Let’s do it!” So, we started our online purchasing business. At that time, we didn’t even have money to rent a storefront, so we started doing it in our head office. It quickly became popular, but then the owner told us that a regular rented office cannot be used as a storefront, so if we wanted to continue, we had to either move out or rent our own store. So, we immediately rented a store. After renting the store, the purchasing business grew rapidly, reaching about 1.8 billion yen in one year, and with the support of D-POPS GROUP, we somehow managed to turn a profit. That being said, in the end, we’re actually going to close down the business in February 2025. After all, it was a low-profit business to begin with, but it carried us through the COVID era, so I can only say we were lucky to have it. Sugihara: I don’t think you should dismiss it as mere luck. To overcome that adversity, you practically tore apart your brain thinking over and over, observing, and quickly executing a plan to launch a business, and you managed to get through it. That’s wonderful. And then, just when one might think, “Let’s keep going with this purchasing business now that it’s on track!”, you made the bold decision to end it. Nagaoka: That’s right. When I look at the other entrepreneurs President Goto introduced me to, I realize that ultimately, it’s about profit more than sales. And when I thought about making TFN a good company that gives back to its employees, I figured this purchasing business definitely doesn’t belong among our services. As an example, if a business partner’s situation changes, our company will naturally be affected by that change. Ultimately, I had a personal desire to return to our own services and our own products. So, I decided our business will gradually pivot that way. ◆Development of In-House Goods Sugihara: Was it around that time? You’ve developed and created various things in-house, such as bicycles and suitcases, but when was it you started making your own e-commerce products? Nagaoka: Actually, we've been doing it since the company was founded. In the past, we developed products like scales and beauty rollers, so we’ve always been doing product development. I’ve always loved making things, so I’ve continued to do it even now. The impetus for making a bicycle was that someone in the company just happened to want one when we were deciding what to create. We made it, and it turned out to be a hit. Sugihara: I see! So, while working on various businesses, TFN has really accumulated a lot of experience and know-how. What would you say is TFN’s strength? Nagaoka: I would say it’s the way we construct our operations and flow. We are very thorough about forming a process and then implementing it into our system, so I think that’s our greatest strength. Sugihara: You also developed your e-commerce system in-house. Can you tell us about its features? Nagaoka: Certainly. We now have about 12 e-commerce stores. While there were systems out there that could instantly aggregate sales and quickly register products for operational purposes, they had both good and bad aspects. For example, with an external system, it was usable, but we could only ever achieve an 80% score. I thought it would be faster to just build everything ourselves. From the time of our founding, we decided to do our system development in-house. Initially, rather than developing a full-fledged system, I built it myself using Microsoft Access, but it eventually couldn’t keep up, so I decided to develop our own system. I was certain that investing in our own systems and automating our processes would be beneficial in the long run for our company’s growth. And I also thought that in the future, the know-how we accumulated through in-house development could lead to various things, such as selling the software or acting as a consultant for other companies. That’s why we’ve focused on system development. Sugihara: So you expanded your business by leveraging your strengths. After many twists and turns, and overcoming the rough seas of the COVID era, the storm finally subsided. At that point, you thought deeply and decided to set your strategy for this year to focus solely on the e-commerce business, isn’t that right? Nagaoka: Yes. I personally like coming up with ideas, and when I decide to do something, I’m quick to execute. However, I had been thinking for a long time that our businesses were too dispersed. I’m more of a person who wants to think about how to turn one business into 6 billion yen, rather than creating three 2-billion-yen businesses to get 6 billion yen, or in other words, I want to do things in a Lanchester way*. That idea became stronger, and when I thought about what we are originally best at, it was e-commerce and retail. In order to concentrate on that, we decided to sell the telecommunications business for now. (*Note: the “Lanchester” method is a well-known business strategy in Japan which focuses on concentrating resources in a single market to achieve dominance.)   Interview conducted by D-POPS GROUP’s advisor Genta Sugihara.   TFN Company President and CEO: Mamoru Nagaoka Address: 1F Asano Higashi-nihonbashi Bldg., 2-27-8 Higashi-nihonbashi, Chuo-ku, Tokyo Established: November 25, 2015 Website: https://tfnmobile.com/   Next, in the latter part of the interview, we discuss: ・Selling off a business ・TFN’s atmosphere and culture ・“Realizing a Venture Ecosystem” ・TFN’s 10-year vision ・And other topics Be sure to check it out here: https://d-pops-group.co.jp/en/column/tfn-interview-latter-part/

Interview with Tatsumasa Hosaka: a Daring Voyage Toward Realizing a “Venture Ecosystem” At D-POPS GROUP, we have 23 group companies as partners (at the time of publication). On this occasion, D-POPS GROUP Advisor Genta Sugihara interviewed President Tatsumasa Hosaka, who founded STAR CAREER CO., LTD in 2016. This is the latter part of the interview. To read the first part, click the link below. https://d-pops-group.co.jp/en/column/star-career-interview-first-part/ ◆The Market Environment Sugihara: Thank you. For my next question, you mentioned that in the case of STAR CAREER, there are a lot of new graduates. However, generally speaking, what are the current trends in recruitment? Hosaka: The job seeker’s market will continue into the future for sure. Businesses will struggle to recruit employees next April and the following April, especially. A lot of companies, including major corporations, reduced their hiring numbers during COVID, and now many are lacking sufficient talent. As a result, demand for new graduate recruitment has increased tremendously. This situation is likely to continue through the hiring of graduates entering the workforce in 2026. ◆The Release of Carepo (“Carepo” is a portmanteau of the words ‘career’ and ‘points’.) Sugihara: In the midst of that challenging recruitment environment, on July 1st, you released a smartphone app called “Carepo” (page is only in Japanese) that allows users to earn points while job hunting. First of all, could you introduce Carepo for us? Hosaka: The Carepo app that we released displays various job hunting events. When job seekers participate in these events through the app, they receive electronic money as points. It’s an app that combines point collecting with job hunting—something that seemed like it should have existed before but didn’t until now. After its release, we’ve seen extremely positive reactions from both students and clients. Since it targets students graduating in 2026, we’re aligning our current approach with that graduating class. Sugihara: So then, you’re starting full-scale promotion from now. Do you have any goals for Carepo? Hosaka: As part of our 2025 fiscal year plan, we’re aiming for Carepo to receive 10,000 downloads. It’s said that about 450,000 people in Japan are job hunting each year, so after first reaching 10,000 downloads, our next goal is to get 150,000 downloads in three years. ◆Industry-Academia Collaborative Events Sugihara: I heard that in connection with Carepo, you’ve been involved in industry-academia collaboration activities and giving lectures at universities. Could you tell me more about this? Hosaka: Yes, as part of a business school curriculum at a certain university, we actively sponsor activities where students set up booths at event venues like a barbecue festival to learn how to generate revenue as a business. In practice, there are various tasks involved—ordering equipment for attractions like shooting galleries and yo-yo fishing, selecting prizes, arranging staff, managing schedules for receiving deliveries, and handling event operations. We expect this provides valuable hands-on experience for the students. We also plan to actively conduct lectures for job seekers, and we’re already receiving requests from universities and employment offices. I originally aspired to be a teacher and hold a teaching license, so in a sense, one of my dreams has come true. Sugihara: What’s the intention behind conducting these activities? Hosaka: The original motivation for starting my business and subsequently launching the job hunting café and the Carepo app was to nurture talented individuals who can thrive in society through our business. I am very grateful that we continue to gain allies who resonate with these activities. Regarding Carepo specifically, our idea is to eliminate employment inequality caused by information gaps, and we’ve received support from professors and lecturers at various universities. Rather than pursuing things purely from a business sense, we aim to create products that are widely endorsed by students, student organizations, and university officials. I want Carepo to become a resource that’s convenient and useful from multiple perspectives. Sugihara: That’s impressive. People who don’t put in the work can get a certain level of results just by pouring money into advertising. But instead of spending money, creating various innovations and earning things through your own sweat and legwork, so to speak—those outcomes are far more valuable than advertising. And more sustainable, too. Hosaka: Yes. Lecturing at universities and employment offices isn’t about status or branding—I simply want people to know about us, and I feel that through these activities, we’re gaining more supporters. Also, regarding “eliminating job hunting inequality caused by information gaps”—as mentioned in our media release (article only in Japanese)—a university dean told me that this is actually a serious issue that needs to be addressed, especially for regional universities. For example, in the Kanto region, job hunting events and seminars are typically held somewhere in Tokyo. When students living in Tochigi Prefecture and students living in Tokyo want to attend job hunting events, company information sessions, or recruitment fairs, the Tochigi students can certainly go, but they inevitably need to make more arrangements. It’s inconvenient to have to coordinate multiple company visits while in Tokyo. This means that within the short timeframe of job hunting, if they are unable to meet with and receive the opportunity to have an interview from a decent number of companies, a significant gap in experience will result. If students can participate online through this app, or if our job hunting café advisors can provide information about events tailored to each student’s needs, they can job hunt more efficiently in terms of both cost and time. We believe this contributes to eliminating inequality caused by information gaps. Sugihara: Everyone recognizes that the information gap between metropolitan and regional areas is an issue that needs to be addressed across all fields. It’s important to spread this awareness, and your business is truly excellent. ◆STAR CAREER’s Corporate Culture Sugihara: Changing the subject completely, I have the impression that at STAR CAREER, within the group, people of all genders and ages are thriving. Looking at your website (page only in Japanese) and company newsletters, everyone has such bright, attractive smiles. There are messages on your website like “shine as your authentic self” and “accept and respect each other”. Is there a policy that you’re consciously implementing, President Hosaka? Could you tell us the background of this message about “shining as your authentic self”? Hosaka: Yes, regarding both the headquarters members and field staff appearing on STAR CAREER’s website…I think basically all our members are like that, without a doubt, ha ha. But actually, this is the culture that President Goto built. The main deciding factor for me—who originally aimed to be a teacher—to join D-POPS* was when President Goto told me, “As we build a 3-billion-yen company that grows to be worth 10 billion yen, then to 30 billion and 100 billion yen, I want to create an environment where young people can take on challenges, so I think it would be great to have someone like a teacher with us.” *Note: D-POPS Corp. (page only in Japanese) is the company originally founded by D-POPS GROUP’s President and CEO Kazuhiro Goto. Based on that kind of culture, President Goto now leads an entire group company and is moving forward to the next major domain, whether that be creating a Venture Ecosystem or contributing to society as an entrepreneur. What I’m conscious of is that I want to pass on President Goto’s desire to provide a stage where young people can take on challenges and overcome them, even while bumping into walls. I’m working with the intention of continuing what I’ve inherited here at STAR CAREER, so I’m simply implementing at STAR CAREER what President Goto conveyed to me: creating an environment where young people can continuously take on challenges and communicating the value of facing obstacles. Journey to the Venture Ecosystem, and Beyond <Interview with D-POPS GROUP President Goto>https://d-pops-group.co.jp/en/philosophy/ Sugihara: I see. Indeed, at most companies led by presidents who emerged from D-POPS, many members have genuine, warm smiles. Recently, there are also many companies that have joined without being brought up out of D-POPS. Have you had the opportunity to speak with any presidents of these other group companies? Hosaka: Yes! I enjoy good relationships with the presidents of various companies that have joined D-POPS GROUP. Simply put, I’m interested in the presidents and members of companies that have joined D-POPS GROUP. I myself have been in the D-POPS environment from the beginning, so as a fellow group president now, I want to know more about their situations before and after joining. Sugihara: It’s definitely important to have someone like you, President Hosaka, who takes interest in our members and actively expands the circle. ◆“Realizing a Venture Ecosystem” Sugihara: Returning to what you said earlier, the members of D-POPS GROUP (not only President Goto) would like to spread the key phrase “Venture Ecosystem” throughout Japan. Is there anything about realizing a Venture Ecosystem that resonates with you, and are there any such activities that you’re intentionally engaging in? Hosaka: Indeed, D-POPS GROUP has officially set its sights on realizing a Venture Ecosystem, but even from the time I joined D-POPS, there was already a stage where young people could take on challenges. I believe that the vision at D-POPS evolved into an even larger worldview in today’s D-POPS GROUP. I sincerely resonate with how the foundational thinking at D-POPS has expanded into a much broader worldview within D-POPS GROUP. What I’m currently aiming for relates to places like the Shibuya Hikarie Building, where D-POPS GROUP’s headquarters is located. Since there are companies in various industries within D-POPS GROUP, I want to firmly establish that joining our group does not only mean gaining access to places like Shibuya Hikarie or industry know-how, but it also ensures increasing a company’s capability of recruiting core employees—even in a challenging job market. Sugihara: With 23 group companies now, being able to say things like “Our company is number one in recruitment capability”, or “Our company is number one in employee training”, or “Leave this backend system to us”—having various companies you can rely on for areas where you’re not as strong is one of the unique aspects of a Venture Ecosystem, you know. ◆Ideal Vision for STAR CAREER and graphD in 10 Years Sugihara: So, President Hosaka, could you tell us your ideal vision for STAR CAREER and graphD ten years from now? Hosaka: Simply put, I consider these two companies, STAR CAREER and graphD, as my assigned areas of responsibility in realizing the worldview that D-POPS GROUP is aiming for. For example, as D-POPS GROUP continues to grow, if they face challenges or need someone to handle certain tasks, I want to be someone who’s always ready to take action. Sugihara: Are there any initiatives you’re currently working on or challenges you face in moving toward that future? Hosaka: We do have some challenges, which we will address starting this October, in the second half of the fiscal year. Actually, all the senior managers who were responsible for each of STAR CAREER’s business units have delegated authority to the next generation. So now, the members who previously worked under those managers have become the final operational supervisors, independently engaging with those clients and supporting team members. I believe the reason why the 20-year survival rate for core businesses tends to be low is that even if they establish a business during an upward trend, they can’t ride the next wave once the business enters a stable or stagnant period. So, while developing three types of businesses—existing, core, and new—we’ve been able to expand our business fields from mobile phone shops to call centers, customer support, and back office support. We’ll continue to nurture the current trends as our existing business. Mobile phone shops, which were once on an uptrend, have now stabilized, but call centers and customer support are expected to continue growing, partly due to the digital transformation wave. We’ve decided to entrust the growth of these existing businesses entirely to our younger staff. And our previous executives will handle the newer business ventures, such as RPO (Recruitment Process Outsourcing), Carepo, and job hunting café operations. We’ve changed our policy so that leaders who are responsible for new businesses should achieve certain sales targets within three years. Sugihara: I see. The people who joined during the company’s launch have cultivated an entrepreneurial mindset through the staffing business—in other words, they’ve studied and gained experience in new business development. That’s truly the venture spirit. Hosaka: For sure. Recently, when we pivoted our business during COVID, we developed new business areas, talent development, and related evaluation systems through a collective effort of all our members. Now we’ve made the decision to have the next generation of members drive the business forward. Next, I intend to focus on properly launching Carepo and the RPO business. And we’re aiming to reduce the gross profit share of the staffing business from its current 90% to 50% over the next three years. The idea is to have our new businesses and the staffing business each account for half of our gross profit. ◆Message to Readers Visiting Our Website Sugihara: That’s a splendid goal. Finally, in closing, could you share a message for our online readers? Hosaka: Of course. When I talk with various people from D-POPS GROUP, I always get a certain sense. For example, there’s a famous manga with the repeated line “I’m going to become the Pirate King!” The protagonist is aiming to reach Treasure Island and earn the title of Pirate King. But interestingly, among the crew members on the same ship, only the protagonist wants to become the Pirate King. One member wants to become the world’s greatest swordsman, another member wants to be able to create sea charts of the entire world—everyone is working hard toward the single goal of reaching that place, but what everyone wants to gain when they get there is different. I think D-POPS GROUP is like that. Your dreams can come true in our Venture Ecosystem. There are many companions here, so we can cooperate with each other to fulfill each other’s dreams. I’m really looking forward to having more members join our Venture Ecosystem’s community in the future.   STAR CAREER CO., LTD Company President and CEO: Tatsumasa Hosaka Address: 25F Shibuya Cross Tower, 2-15-1 Shibuya, Shibuya-ku, Tokyo Established: May 2016 Website: https://star-career.co.jp/

Interview with Tatsumasa Hosaka: a Daring Voyage Toward Realizing a “Venture Ecosystem” At D-POPS GROUP, we have 23 group companies as partners (at the time of publication). On this occasion, D-POPS GROUP Advisor Genta Sugihara interviewed President Tatsumasa Hosaka, who founded STAR CAREER CO., LTD in 2016. ◆Background of STAR CAREER’s Establishment Sugihara: Today we’re interviewing President Hosaka of STAR CAREER. Thank you for your time. First, could you tell us about how you came to be the president of STAR CAREER? Hosaka: Sure! STAR CAREER was founded in 2016. I joined D-POPS in 2006 and worked as a store manager and division director. Actually, starting around 2014-2015, President Goto, who founded D-POPS and currently serves as President and CEO of D-POPS GROUP, was offering an entrepreneur training school of sorts (which has become affectionately known as “Goto School”), and there were some members of the D-POPS stores who also participated. Mr. Fujita, who is now the chairman of the board at Advancer (one of the group companies), was the first in-house entrepreneur to win an MVP award at Goto School. Actually, I never attended Goto School myself, instead putting myself in a position to support other members within D-POPS who wanted to become entrepreneurs or create new companies within the group. One day, President Goto approached me after D-POPS achieved 10 billion yen in sales. As we began setting our next goals for 30 billion yen, 50 billion yen, and 100 billion yen, he had come up with the idea of starting a new company within the group, one specifically related to human resources. When he shared the plan with me, I immediately started to recommend other members, saying things like “How about this guy?” or “How about that guy?” Then President Goto asked me, “Hosaka, why aren’t you putting your own hat in the ring?” I replied, “Well, I guess I'd rather focus all my energy on leading the younger D-POPS members to help us reach 30 billion and 50 billion yen!” That evening, when I was having drinks with my junior D-POPS colleagues (which was a regular occurrence), I told them about my conversation with President Goto and how I had declined because I wanted to achieve the 30 billion and 50 billion yen goals together with everyone. They responded, “What are you talking about?! You go do it! Leave this to us and show us how it’s done!” Realizing they were right, the next day I went back to President Goto and said, “Remember what we were talking about yesterday? Please let me do it.” That’s how it all started. Sugihara: Was your experience at D-POPS useful in managing your own company? Hosaka: It was, and still is. Back then, stores operated on an independent profit system. They managed their own sales and gross profits, and independently funded campaigns using the store’s personnel budget. In a sense, it was effectively like running their own small-scale businesses. So, depending on the store manager, a store could either become very profitable or fall into the red. We weren’t focused solely on sales numbers or the volume of contracts—each store was essentially running its own business. This experience of running a mini business at the store level has been extremely valuable for my current management role. Sugihara: Being able to learn management at the store level must have been very educational. By the way, at that point, how many companies were in the group besides D-POPS? Hosaka: At that time, there were only Good Crew and Advancer. Sugihara: I see. So then, you were starting the group’s third HR-related company? Hosaka: Actually, Advancer wasn’t an HR company at the time…it was a secondhand shop for smartphones. They later pivoted to become the HR company they are today. Sugihara: Oh, I didn’t know that! Well, what were the differences between Good Crew and STAR CAREER back then? Hosaka: There were two main differences. First of all, STAR CAREER wasn’t just focused on mobile businesses—in anticipation of the Tokyo 2020 Olympics, we launched with the concept of providing specialized staffing for customer service and store operations in brick-and-mortar businesses like hotels and restaurants. Second, at that time, Good Crew was struggling with recruitment, hiring only 30-40 people annually. We accepted the mission that President Goto proposed: “Hosaka, let’s aim to hire 100 people.” As a result, STAR CAREER ended up hiring 107 new graduates that April. Interestingly, the following year, Good Crew managed to hire 100 people as well. I think this was part of President Goto’s strategy to foster growth through competition. Starting recruitment activities right after founding the company and hiring 107 new graduates was challenging enough, but then around November, President Goto said, “There’s a company joining through M&A next April. I was thinking you could manage that one, too.” Since we had just started this brand new company with only two people including myself, I was asking myself, “Really??”, while in the same breath, I answered, “I’ll do it!” And so, with that, I also became the manager of graphD. Sugihara: That sure escalated quickly! You seem to be the type who can handle—or at least be willing to handle—any obstacle that comes your way. Hosaka: I love getting thrown curveballs! I want people to think of me as “that handy guy”. Sugihara: That’s really important, isn’t it? From the perspective of top management, having “handy people” among executives is absolutely essential, and those individuals end up getting more and more work thrown their way. The more work they’re given, the more they develop and gain experience. It’s a beneficial situation for executives, but something similar can be seen in group company management as well. Even as a CEO running one organization, to be seen as a “handy guy” by the group’s president must be important, or rather, desirable. Hosaka: Yes, I was quite happy about that! But then, I was also thinking “Seriously?!” about establishing a new company in April when 107 new graduates were also joining at that same time, ha ha. ◆STAR CAREER’s Business Sugihara: Could you briefly introduce us to STAR CAREER’s business model? Hosaka: As of 2024, we’re a comprehensive HR services company that operates job hunting cafes which we call Career Work Cafe. With these job hunting cafes at our center, we run three main businesses: temporary staffing, job placement, and recruitment outsourcing. Sugihara: I see. So those job hunting cafes are the core of your business. Hosaka: That’s right. When companies recruit, they typically either post on platforms like MyNavi and wait for applications, or work with recruitment agencies to find candidates. From a job-seeking student’s perspective, our job hunting cafes serve as a platform that’s neither a job board nor a recruitment agency…it’s a unique place they can reach out to. Sugihara: How do job-seeking students learn about your job hunting cafes? Hosaka: Basically, we have partnership agreements with student organizations. For example, we work with student groups supporting refugees in Laos and Cambodia, or those who help at dog and cat rescue centers. We open our job hunting cafes as meeting spaces for them and provide them with a place for their activities. We also regularly sponsor their activities with contributions of around 50,000 or 100,000 yen each. In exchange, students registered with these organizations come to our job hunting cafes when we hold events or information sessions. Sugihara: So, since your core business is supporting job-seeking students with these job hunting cafes, you mainly handle recruitment and placement of students. I imagine many of your own hires are students and young people…how do you handle their education and training? Hosaka: First of all, we do training for those who’ve received tentative job offers and for new hires. Then, we do group training sessions every month for a full year after that. While many other group companies and external staffing agencies do similar things, our temporary staff work one day less at their placement sites compared to other companies. In a sense, we’re using that day for training, so they spend less time at their placement sites. What we consistently tell our members, from the time we tentatively offer the job until they are hired, is that “When it comes to work, in order to do what you want to do, focus on increasing your skills, and you’ll eventually be able to do what you want.” Now, when it comes to level and skills, most people seek to acquire skills, such as earning certifications or studying abroad. Skills are indeed powerful assets, of course, but it’s like in Dragon Quest: even if a character has a level 50 weapon (skill), it can’t be used effectively if the character itself is only level 1. In the same way, without raising your own level, you can’t utilize those skills. So rather than just improving skills to increase a member’s market value, we focus on raising the member’s level for the first year. We encourage our members to go from level 10 to 20 to 30, while also honing their skills at the same time. Instead of just telling people to work in stores, we offer monthly training sessions to teach them how to face challenges they might encounter in those stores, how to approach problems mentally, how to seek cooperation from others, and how improving your level enables you to handle work better. Sugihara: That’s wonderful. What you gain from leveling up is much more valuable than focusing on skills like certifications first. Not that certifications are useless, but in terms of English, for example, it’s better to become a business person who masters English through practical use and work experience, and then maybe takes a test and sees an improved score, rather than someone who can’t communicate in English but has a TOEIC score of 990. The former builds confidence and is definitely more valuable. ◆Challenges During the COVID-19 Pandemic Sugihara: Now for the next question. You’ve been managing this HR company for 8 years…how is your business doing recently? How was the company’s situation during the COVID-19 pandemic three years ago? Hosaka: During the pandemic, we suffered damage severe enough to shake our company’s direction. We had originally planned to focus on store businesses, providing staffing for hotels and restaurants, but then the Olympics were cancelled... Originally, each color of the stars in STAR CAREER’s logo had a specific meaning. We started with the concept of specialized staffing for customer service in five areas: hotels, bridal, apparel, restaurants, and mobile phone shops. But when COVID made these business prospects uncertain, we had to remove all mention of them from our website and other materials. At the same time, we launched job hunting cafes as our business. The long COVID era brought major changes to people’s lifestyles and perspectives, especially for the job-hunting students with whom we frequently interact. They started their freshman year right when COVID-19 began to interrupt life in Japan, and were seniors when the Japanese government reclassified COVID-19 from a Category 2 pandemic to a Category 5 (lower-risk) endemic disease. So, it makes perfect sense that they struggle to answer interview questions such as “What did you accomplish during your college years?”. The job hunting cafe business, which started alongside COVID, transformed into something that aimed to expand people’s career options and make their life choices more colorful. However, when we first launched the cafes, we did lose some employees who had joined expecting to work in hotels and restaurants, saying “This isn’t what I was first told! I joined because of what was promised initially, but now we’re not doing that anymore.” While maintaining our core principle of “connecting people with people”, we expanded into remote call centers and work-from-home customer support, areas that grew significantly during COVID. As the pandemic subsided, we also moved into in-office administrative work. Now, beyond providing environments for our members’ growth, we’ve strengthened our focus on offering various working styles to suit different life plans. What COVID helped us realize was that whether it’s B2C or B2B, it’s ultimately about human connections. For example, when customers come to a store, they do so because they think, “Maybe this person can do something for me.” In B2B as well, since there are people involved, “This is a tight deadline…but maybe if I ask So-and-so, they’ll do their best to help.” In the end, work is all about people connecting with people. Members who joined as new graduates saying “I’ll work super hard!” have now returned from maternity and childcare leave. Some continue to work just as hard, while others want a better work-life balance, and some want to work but can only do so under certain conditions. And I believe all of these choices are valid. Whether some members want to increase their income, enrich their private lives, or prioritize their family—when these various needs arise, we want to create options within the company to accommodate them, making it a place where people can work with peace of mind for a long time. I think the idea of making one’s life more colorful is the new meaning and intent behind our logo’s design. As for business performance, our top line did temporarily decrease due to the changes in our business model resulting from the pandemic, but since then, our operating profit has actually increased! Sugihara: That’s wonderful. You went through a difficult period but came out stronger for it, and now you’re gradually shifting to a more robust business model. Hosaka: Yes. Now we dispatch more people to call centers and back offices than to mobile phone shops, so I guess you could say our group’s risk portfolio has expanded. STAR CAREER CO., LTD Company President and CEO: Tatsumasa Hosaka Address: 25F Shibuya Cross Tower, 2-15-1 Shibuya, Shibuya-ku, Tokyo Established: May 2016 Website: https://star-career.co.jp/ Next, in the latter part of the interview, we discuss: • The market environment • The release of “Caripo” • Industry-academia collaborative events • STAR CAREER’s corporate culture • “Realizing a Venture Ecosystem” • And other topics Be sure to check it out here!

Interview with the CEO & Founder and the Director of The Salons Japan Inc., the company striving for "True independence for beauticians" 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/