About IDOM

IDOM Inc.

Business model and overview

Corporate information

ESG & IT

Updated: April 15, 2019

2

Contents

I. Business model and overview 3

Distribution of purchased used cars (past and present) 4

Dolphinet system 10

Competitiors and market information 11

New services 15

Overseas business 18

II. Corporate information 19

IDOM Group 20

History of IDOM 21

Directors, Auditors and Advisers 23

III. ESG & IT 24

I. Business model and overview

3

Distribution of purchased used cars (past)

4

Pool Center

Appraisal

General

Customers Luxury

foreign cars Foreign

cars

People

movers Eco-cars Light cars Older model cars

Auction Sites

Approx.

120 sites

USS

JU

JAA

LAA

・・・

Used-car dealers

Strictly controlled

inventory period

Purchase(Stock)

Wholesale B to B

5

Budget-priced cars Light cars Original Gulliver Store Minivans Large-sized store Foreign cars Luxury foreign cars Shopping mall

・・・

General

Customers Luxury

foreign cars Foreign

cars

People

movers Eco-cars Light cars Older model cars Appraisal

Purchase(Stock)

Retail Sales B to C

Wholesale B to B Auction Sites

Approx.

120 sites

USS

JU

JAA

LAA

・・・

Used-car dealers

Strictly controlled

inventory period

Distribution of purchased used cars (present)

6

OUTLET (budget-priced cars)

Original Gulliver store (focused in purchasing)

7

SNAP HOUSE (specialized in minivans)

Gulliver MINICLE (specialized in light cars)

8

LIBERALA (specialized in foreign cars)

LIBERALA (specialized in foreign luxury cars)

9

WOW! TOWN (large-sized store)

HUNT (shopping mall)

10

Dolphinet system

Purchased vehicles are registered on Dolphinet

and can be viewed at stores nationwide

Registered

information

Detailed vehicle information

Remaining days in stock

・ Vehicle exterior / interior images ・ Model / Make / Year / Distance driven ・ Main equipment (options, features)

・ Repair history ・ Exterior conditions (small dents and scratches)

・ Interior cleanliness (ranked 5 levels: A-E) ・ Valuation score (out of 100)

11

ＩＤＯＭ ラビット Ｔ-ＵＰ アップル カーチス ユーポス カーセブン

(The total number of cars purchased by directly-managed stores and franchised stores)

Number of used cars purchased by 7 major companies in Japan

No.1 in used car purchases

IDOM Rabbit T-UP Apple Carchs U-POHS CARSEVEN

0

50,000

100,000

150,000

200,000

(unit: No. of cars) Source: Yano Research Institute, 2015 results of Used Car Distribution Industry 2017

12

New

Used

Used

New

Used car prevalence in Japan and the U.S.

Japan The U.S.

'12/2 '13/2 '14/2 '15/2 '16/2 '17/2 '18/2 '19/2

13

Source: Car Max Annual Reports

Car Max, the leading company in the U.S. used car market

(unit: No. of cars)

200,000

0

Wholesale

Earnings before income taxes

Retail

(unit: million dollars)

800,000

600,000

400,000

1,000,000

600

400

0

200

800

1,000

Earnings before income taxes

1,112 million dollars

Wholesale unit sales

447 thousand cars

Retail unit sales

748 thousand cars

* Result from an internet survey conducted in August 2014 (target: 1000 persons)

Increasing interests in buying used cars

among younger generation

14

Survey among different age groups

% of respondents

who bought a used car for their first car

% of respondents who would consider

buying a used car for their next car

% of respondents who would consider

buying a used car more positively than before

25%

35%

38%

40s 30s 20s People in their 20s

20 years ago

People in their 20s

10 years ago

40

30

20

10

(%)

0

42%

51%

62%

40s 30s 20s

70

60

40

20

(%)

0

50

30

10

26%

33%

42%

40s 30s 20s

50

40

20

(%)

0

30

10

15

New service (1) “NOREL”

Monthly-flat rate short-term leasing service

Users can select cars to suit their lifestyle or seasons

* Monthly fee: from 59,800 (before the consumption tax)

Including ●Vehicle insurance (voluntary insurance) ●Taxes (vehicle tax, weight tax) ●Safety inspection certificate

Change to next vehicle

after minimum of 90 days

BMW/MINI new car NOREL 2 Used car NOREL 1

Change to another new vehicle

after every 5,000 km (Maximum of 10 months per vehicle)

16

Seller

C2C platform

Guarantee

Sold on

“Gulliver FleMa”

Maintenance

Option

Inspected by

Gulliver Cars put up on

“Gulliver FleMa”

Contract commission

68,000 yen*

Customers who had

their cars appraised but

did not accept the offer

Buyer

Contract commission

60,000 yen*

New service (2) “Gulliver FleMa”

* Commission fees for the vehicle price between 500,001 and 1,000,000 yen. The fees vary according to the vehicle price.

* “Gulliver FleMa” (flea market) is formerly operated under the service name “Kurumajiro”

17

New service (3) “GO2GO”

* Service areas: Tokyo, Kanagawa, Chiba, Saitama and Osaka (planned, as of April 2019)

C2C car-sharing service offering car owners to share their cars when not in use

and reduce burden of car ownership

Owner User

Reservation

Vehicle

Registration

Sharing agreement

Fees

+

Insurance

Fees

-

Commission

18

Overseas business

New Zealand Australia

The U.S. Used car

exports

Used car sales

(Directly operated)

New car

dealers

Used car purchases

and sales

(Directly operated)

II. Corporate information

19

Gulliver

EAST

IDOM Group

20

Gulliver

U.S.A.

Gulliver

NewZealand

100%

Overseas Business

New Zealand

100%

100%

100% 100%

USA

ＩＤＯＭ

IDOM Automotive

Group

Australia

100%

67%

IDOM

Automotive

Essendon

Buick

Holdings

100%

Sm

art C

on

ne

ct

Gu

llive

r Insu

ran

ce

Co., L

td.

Advertising

agency

Insurance

agency

Consolidated

BMW/Mini

Dealer

Motoren Glanz

Co., Ltd.

Tokyo My Car

Sales Co., Ltd.

Motoren Global

Co., Ltd.

100% 100%

Consolidated Direct

Stores

3

Consolidated Direct

Stores

2

Consolidated Direct

Stores

11

100%

Direct Stores

519

Franchise Stores

69

Consolidated Consolidated Affiliated Direct

Stores

2

Direct

Stores

4

Direct

Stores

5

Direct

Stores

25

Consolidated Consolidated Direct

Stores

1

Consolidated

* The numbers of stores are as of February 28, 2019. Some of the subsidiaries are excluded in the above chart.

21

History of IDOM

1994 Establishment of Gulliver International Co.,

Ltd.

Corporate Business Awards

1998

1999

2000 Listed on TSE Second Section (Fastest

from establishment in record at the time)

2002

2003

2004

2006

2008

Launched Dolphinet system

Established 500 stores network mainly with

franchised stores

Moved the headquarter to current location

Started “DUO management style” by 2

presidents

“IR Special Award”

(Japan Investor Relation Association)

Became the first and only “hyper growth

company” in Japan *title used in the U.S. for a fast growing company which

achieved 1 billion annual sales within 10 years from its

establishment

Gulliver USA, Inc. established

Listed on TSE First Section

Received “Porter Award”

Awarded “2nd High Service Japan 300” (Service Productivity & Innovation for Growth)

2009 Started “10 year gurantee service”

Share listing on the OTC market (Second

shortest from establishment in record at

the time)

2010 Transferred shares of G-one Credit

Services, the financial service subsidiary,

to SBI Holdings

22

History of IDOM

2011

2012

2014

2015

2016

2017

Motoren Global established

(Started BMW/MINI dealer in Hokkaido)

Opened first store in New Zealand

Acquired Nakamitsu Motors which

operates BMW/MINI dealers in Chiba and

change the company’s name to Motoren

Glanz

Obtained 67% of shares in Buick Holdings

Pty Ltd., the new car dealers in Western

Australia

Changed the company’s name to

IDOM, Inc.

Opened the first large-scale showroom

“WOW! TOWN Makuhari”

Renewed headquarter-bulk-appraisal

system (implemented mobile device in car

inspection at each stores)

Started “Gulliver Flema (Kurumajiro)”

service

Started “NOREL” service

Ranked 29th in “Best Workplaces”

(Great Place to Work Institute Japan)

Awarded for 7 consecutive years

2011-2017

Received “IT Japan Award 2012”

(Nikkei Computer)

Selected as “2017 Competitive IT

Strategy Company”

(Ministry of Economy, Trade and

Industry & Tokyo Stock Exchange)

“Best Workplaces” ranked 18th,

highest ranking since 2011

Accelerated opening of display sales

stores under midium-term business policy

Launched the pre-delivery maintenance

service center

Corporate Business Awards

2018

2019

Acquired Melbourne-based new car dealer

group in Australia

Started C2C sharing service “GO2GO”

23

Directors, Auditors and Advisers （As of April 15, 2019）

Honorary Chairman

Kenichi Hatori

Founded Gulliver in 1994.

Appointed representative director and chairman

of Gulliver in 2008. Appointed honorary chairman

of Gulliver in 2016.

Adviser

Hideo Yamada

12th Commissioner General of the National

Police Agency.

Appointed advisory of Gulliver in 2016.

President

Yusuke Hatori

Born in 1971. Joined Gulliver in 1995, one year after its foundation. Set up several stores, starting with the Sapporo store. After

serving as director, executive director, and senior executive director, appointed representative president and director in 2008 with

the transition to a dual president structure. Currently responsible for corporate strategy, and supervises overseas business,

franchise operations, and administration division, among others.

President

Takao Hatori

Born in 1972. Joined Gulliver in 1995, one year after its foundation and established the first Kanto store.

After serving as director, executive director, and senior executive director, appointed representative president and director in 2008

with the transition to a dual president structure. Currently responsible for corporate strategy and supervises directly managed

businesses in general.

Director

Masaru Ohta Born in 1964 and joined the Company in 1997. Appointed executive officer in 2009. Appointed director in 2016.

Director

Koichi Noda

Born in 1966. Graduated Harvard Business School. Held several executive positions including Executive Officer at Rakuten, Inc.

Appointed director of IDOM in 2018.

Currently serves as a Chief Human Resources Officer, Walmart Japan Holdings, K.K.

Auditor

Masakatsu Endo

Tax accountant. Representative director of

Wakaba Kaikei Center. Appointed Audit &

Supervisory Board member of Gulliver in

2000.

Auditor （Full-time）

Kunie Yanagawa

Served at Itochu Corporation before joining Union Optical Co., LTD., where he served as representative director and president and

representative director and chairman.

Subsequently held several board member positions at companies including a subsidiary of Gulliver. Appointed Audit & Supervisory

Board member of Gulliver in 2016.

Auditor

Hiroto Nakamura

Certified public accountant. Head of Nakamura

Accounting Office. Appointed Audit & Supervisory

Board member of Gulliver in 2008. Currently serves

as outside Audit & Supevisory Board member of

MANDARAKE INC.

Internal

Independent

Director

Internal

Internal

Internal

Independent

Director

Outside

Outside

Independent

Director

Outside

Director

Jun Sugie

Born in 1956. Joined Ministry of Finance and worked as chief of the Tokyo Regional Taxation Bureau among other important

posts.Appointed director of IDOM in 2017.

Currently serves as a Vice Chairman and Senior Director, The Investment Trusts Association, Japan. Independent

Director

Outside

III. ESG & IT

24

25

ESG/IT Important Issues

Achieve highly transparent used

car market and create new

usage value for cars

Purchase used cars from customers at high transparent prices and provide

good-quality, reliable cars through our national network of stores (approx. 500

stores) and help to enrich the car lifestyles of customers even if they are in

regions where cars are just a necessity.

Also pursue to create new value in use of cars.

Pursue CS-orientated management.

Improve the motivation and workstyles

of personnel who bring the customer

satisfaction

Utilize IT as our competitivenes

More than 120,000 retail units are sold at IDOM’s directly-managed stores

annually. Reflect the customer feedback and opinions in business

management, as well as work to improve the development, motivation, and

workstyles of more than 3,000* employees throughout Japan who are

dedicated to satisfy our customers.

Reinforce risk management and

corporate governance

Aim for growth by taking advantage of our culture of integrating IT in our

business. Also use IT to initiatives aimed at ESG issues.

Reinforce operational risk management to improve sustainable corporate

value. Incorporate investor opinions in efforts to improve corporate

governance issues.

*IDOM non-consolidated, directly-managed stores

1

2

3

4

26 Aggregate CS survey cards from customers who use directly-managed stores.

“Q. How likely are you to use our store again?”

CS management

’11/2 ’14/2 ’17/2

80

60

40

20

0

100

(%)

48% 53%

64%

50% 45%

35%

2% 2% 1%

Issue 2

A dedicated team monitors feedback from

customers as core benchmarks. Link to

improvements to operations and business.

Use CS data analysis to improve business

Use customer satisfaction rates in addition to

performance to evaluate employees and stores.

Reflect in HR evaluations

CS survey

Very likely Moderately

likely

Not likely

/ Not at all likely

27

Initiatives related to motivation and workstyles

29th

2011 2017

Conducted by the Great Place to Work® Institute Japan

Survey on state of corporate initiatives and employee awareness

(participating companies: 379 companies in 2017)

1,000 or more employees group

18th

Issue 2

Evaluations by external institutions

(Ranked as a top company in “Best Workplaces”

for seven consecutive years)

Workplace improvement

Promoting women’ s active participation in the

workplace. Epmloyees taking a leading role in

creating the culture

“Sakura Project” – promoting women's

active participation in the workplace

Improving work efficiency by incorporating mobile

devices for store operations

Using BI tool to centralize management data

Reinforce work time management

Increasing productivity

"Best Workplaces" ranking

28

IT use

Creating structure and culture that can actively

utilize IT in business

IT personnel development

Maximizing efficacy by conducting IT-ROI

evaluations for IT investments

I. Management

II. Strategic

IT use

III. System, personnel

V. Evaluation

IV. Platform

0%

20%

40%

60%

80%

100%

Average for all industry

Wholesale

IDOM

Issue 3

“Competitive IT Strategy Company 2017” Promote company-wide IT utilization

IT Japan Award 2012

(Conducted by Nikkei Computer)

"Competitive IT Strategy Company 2017"

(METI, Tokyo Stock Exchange)

External evaluations

29

ESG/IT Core Initiatives

So

cie

ty

En

viro

nm

ent

IT use Create organization that can integrally promote business and IT

Go

ve

rna

nce

IT

Continuous improvement to

corporate value through

engagement

Reflect investor opinions in management and IR activities (IR meetings held: approx. 300 in

FY2019)

Operations risk management

Compliance education and enlightenment activities

(hold compliance tests, establish compliance internal web sites, distribute internal newsletters)

“Fair Evaluation Committee” established

Reinforce rules and regulations (information security regulations, personal information

management regulations, etc.)

Operate whistleblowing system

Improve employee motivation Use external evaluations (ranked as a top company in “Best Workplaces” for seven consecutive

years 2011-2017)

Workstyle reform Reforming workstyles and improving productivity by IT utilization

Reinforcing work time management and operating hot-line

Personnel development Education system (training system, e-learning, etc.)

CS-focused personnel evaluation system

Focus on diversity, women’s

active participation

Promoting corporate culture that does not have stereotypes related to nationality, gender, etc.

"Sakura Project" - Support for women's active participation in the workplace

Offer new usage value for cars NOREL used car utilization service that allows vehicle switching and sharing

C2C car-sharing service GO2GO

Coexist with communities

Nationwide store openings, coexistence with local communities (number of directly-managed

stores: 519, as of February 2019)

Inventory sharing system to enable sales of reliable, good-quality cars throughout Japan

Pursue customer satisfaction Continue CS surveys

Conduct regular blind surveys by third parties

Reliability Return system, up to 10 year warranty service, etc.

Social support For each car purchased or sold, a donation is made to UNICEF through “UNICEF Support Gifts” in

which customer can choose from a selection of gifts (since 2011).

Highly transparent used car

distribution and recycling-based

business model

FY2019 - IDOM non-consolidated sales (in units)

Retail: 124,527; Wholesale: 92,708

Reducing environmental load

Promoting paperless operations (digitization of sales contracts, online sharing of internal

documents, etc. )

Installing LED lighting in the headquarter and stores