IDOM : Integrated report_2023

TSE Prime 7599

Contents

1 What is IDOM? IDOM Group Profile

1. IDOM' s Corporate Philosophy since Its Foundation
2. IDOM's History
3. Message from the Presidents

1. Presidents' Dialogue

2 Business Model Business model

1. IDOM' s Model for Value Creation
2. Changes in IDOM's Business Models and Store Operations
3. Market Environment Analysis
4. Japan's Used Car Market with Much Lower Ratio than Those in Europe and the United States
5. Used Car Retail Market with a Large Room for Growth of Market Share
6. Change in People's View of Used Cars
7. Expected Future Changes
   in the Environment Surrounding the Used Car Industry
8. Five Strengths of IDOM's Business
9. 1. Brand Power
10. 2. Number of Customers
11. 3. Sales Capabilities
12. 4. IT Utilization Capabilities
13. 5. Ability to Respond to the Rnvironment
14. Business Portfolio as a Medium- to Long-Term Goal
15. Key Management Indicators
16. Positioning of the Medium-Term Business Plan and Its Three Themes
17. Message from the CFO

3 ESG Environment / Social / Governance

30 Message from the Chairperson of the Sustainability Committee

1. Tasks That Idom Will Take on Towards the Achievement of the SDGs
2. Circulation Cycle of Used Car Business
3. Sustainable Finance
4. Disclosure in Line with TCFD Recommendations Related to Climate Change
5. IDOM Sustainability Declaration
6. Approach to Diversity

1. System to Promote Initiatives Based on the Concept of Diversity
2. Social Initiatives
3. Motivation Cloud
4. IDOM's Governance System
5. Two-PresidentSystem
6. Corporate Governance Diagram
7. Directors' Skill Matrix
8. Directors, Auditors and Advisers

4 Data Section Data section

48 Main Indicators

1. Principal Financial Data
2. Consolidated balance sheets
3. Consolidated statements of income
4. Consolidated statements of cash flows
5. Financial, Non-Financial Highlights

56 Corporate Profile, Stock Data

2

1What is IDOM? IDOM Group Profile

3

What is IDOM?

IDOM's Corporate Philosophy since Its Foundation

IDOM Corporate Philosophy

Growing Together

We aim to continue to grow together with our five key stakeholder groups to achieve a prosperous future through the embodiment of IDOM-ism.

Society

Five Stakeholders

Shareholders

Customers		Partners

Employees

What is IDOM?Business Model

ESG

Data Section

4

Trend in consolidated operating profit

What is IDOM?

History of IDOM

Founding-Purchasing and Wholesale Period	Transition to a Retail Model	New Retail Model

What is

Rapid growth as a used car purchasing specialty store with a unique business model that had never been seen before Becoming the only hyper growth company in Japan

In the 1980s, when trade-ins were still the mainstream in the used car industry, IDOM rolled out the unique business model of the used car

300 purchase specialty store. We continued to grow through pioneering initiatives, such as the introduction of an image-based sales system in 1998, which is now the mainstream approach, and in 2004 we became one of only a handful of hyper-growth companies in the world, and the

only one in Japan; a title which we still hold today. (A hyper-growth

250 company is one that achieves sales of one billion dollars-around 100

billion yen-within 10 years of its establishment).

As purchase-only stores increased, we shifted to a more profitable retail business model, implementing different retail initiatives including multi-channel operation.

From the 2000s onward, dealers backed by major manufacturers began to participate actively in the used car industry, leading to intensified competition among used vehicle purchasers. IDOM shifted to a more profitable retail business model. Our shift to a retail model can be divided into three phases: the early transition phase, in which we began to engage in retail sales together with wholesale at car purchasing stores, the intermediate transition phase, where we began opening dealerships rather than purchasing stores, and the final transition phase where we engaged in a range of trial retailing initiatives, such as opening dealerships with a multi-channel approach.

Release of "Medium-Term Business Plan

2023-2027" in April, 2022

Sale of the Australian business in June, 2022

Kisarazu Kaneda store opened in

January, 2023

Reviewing our business portfolio based on experience gained during the transition period, and aiming to make further leaps

IDOM?Business Model

ESG

200

150 The first store with only three employees at the time of foundation

(Koriyama, Fukushima)

100

Fastest IPO in history at the time in 1998

50 Founded in 1994

Listed on the First Section of the TSE in 2003

Opened 500 stores in 1999

We operated a wide range of sales channels in the trial phase.

The Company' s name changed to IDOM, Inc. from Gulliver International in 2016

forward by selecting and concentrating on businesses with high capital efficiency and growth potential, based on our medium-term business plan

We have reviewed our business portfolio and formulated a growth strategy based on experience

gained and issues identified through various trials during our transition to a retail model, which will serve as a foothold for future growth-such as confirming the high degree of capital efficiency of large-scale exhibition halls through our multi-channel approach. IDOM has announced its medium-term business plan as a specific plan for achieving further growth. Going forward, we will continue to open large-scale stores and maintenance shops, which are the pillars of our growth strategy, by selecting and concentrating on businesses with higher capital efficiency and growth potential. As our most recent result, in the fiscal year ended February 2023, we overcame factors leading to a decrease in profit-around 5 billion yen due to the sale of our Australian business-to achieve an increase in profits for the fourth consecutive year.

Data Section

95

96

97

98

99

00

01

02

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17

18

19

20

21 22 23

5