Materiality | Enigmo Inc.

Identification of Materiality

In May 2023, we identified materiality and formulated sustainability four key actions that will affect the sustainable development of society and our mid-to long-term corporate value in order to realize the United Nations Sustainable Development Goals (SDGs) and other aspirational societal goals.
※Materiality and sustainability four key actions approved by the board of directors in May 2023

Materiality Map

Formulation of the four key actions

Vision, SDGs contribution and KPIs related to the four key actions

Key actions for sustainable value creation *UPDATED April 25th, 2025

Key Actions	Materiality	Vision	KPI
Establishment of new business and portfolio	・Establishment of new business and portfolio	Stable earnings from existing businesses and establish earnings from non-existing businesses by investing in new businesses	・Aim to achieve sales of 3 billion JPY or more outside the BUYMA business by FYE Jan. 2027.
Enhancement of quality of service/ user experience	・Enhancement of customer satisfaction ・Compliance ・Customer privacy ・Data security	Customers want to continue to use BUYMA services without anxiety Customers continue to use BUYMA services without anxiety in terms of security	・Continue to report zero incidents of leakage of personal information.
Talented resources and equal opportunities	・Enhancement of employees’ competence ・Diversity and equal opportunities	Each employee feels that (s)he is contributing to the company’s growth and improving individual abilities The company can provide a place where a wide variety of people can play an active role not only as employees, but also as BUYMA users	–
Further expansion into global markets	・Further expansion into global markets	The company expands revenue from overseas business and becomes less dependent on the domestic market	・Aim to achieve overseas sales of 1 billion JPY by FYE Jan. 2028*

* Overseas sales refer to sales of BUYMA TRAVEL and overseas sales of future new businesses or acquired companies.

Process for identifying materiality and sustainability four key actions

STEP 1：Extraction and organization of candidate materiality items

In order to identify issues for the realization of sustainability for both society and the company, we picked up candidate issues by referring to the SDGs, GRI, and materiality of other companies in the same industry, and then consolidated and integrated these issues to create a list of candidate materiality.

STEP 2：Evaluation of Materiality Candidates

In order to evaluate the materiality candidates, we weighed the importance to stakeholders on the vertical axis in the materiality matrix, including SASB, evaluation items by various ESG evaluation organizations, and results of interviews with investors, and then aggregated them to evaluate their materiality.
Next, using the level of importance to the Company as the horizontal axis, we interviewed internal directors and evaluated the level of importance to the Company, taking into account the Company’s action guidelines, initiatives, strategies, vision, and other factors.
A matrix plotting these factors was created, eight items were identified, and sustainability four key actions were identified by grouping related items.

STEP 3：Validity Assessment

Based on the results of the evaluation conducted in Step 2, the materiality and sustainability four key actions were identified after review by management and the Board of Directors.

Opportunities/risks associated with the sustainability four key actions

We recognize the following opportunities/risks related to the sustainability four key actions listed above.

Key actions	Item	Recognized opportunities/ risks
Establishment of new business and portfolio	Economy	We have continued to grow our business by developing a business model centered on the “Specialty” marketplace “BUYMA”. While the BUYMA business in the pandemic of Covid-19 was able to expand its business thanks to a shift in demand from real stores to e-commerce sites, we recognized the need to diversify business risks in drawing up business growth strategies, as overseas fashion and other merchandise were subject to cooling consumption due to price hikes caused by foreign exchange effects and inflation overseas. In order to draw up a business growth strategy, we recognized the need to diversify business risks. In the context of these circumstances, we recognize the need to acquire new revenue sources not only from the BUYMA business but also from new businesses in order to achieve continuous business growth.
Enhancement of quality of service/ user experience	Economy	We operate the “Specialty” Marketplace “BUYMA” and are in a competitive environment with the rise of competitors and new services. In order to continuously grow the BUYMA business under these circumstances, we recognize the need to enhance the quality of service/ user experience. Specifically, we recognize that it is necessary not only to improve UI/UX, but also to take initiatives that will lead to an enhanced level of security and safety image.
Talented resources and equal opportunities	Social	We operate the “Specialty” Marketplace “BUYMA” and provide a place where a diverse range of human resources can work, including system and application development. In addition, users who list their products on BUYMA are located all over the world, and regardless of location, gender, or nationality, if they can find good merchandise, they can generate revenue regardless of whether they are individuals or corporations. In this way, we recognize that the expansion of not only the human resources involved in the BUYMA business but also the number of users who list their products on BUYMA will lead to better activation of the BUYMA business and also fulfill a social role such as employment promotion.
Further expansion into global markets	Economy	In the fiscal year ending January 31, 2025, the total transaction volume fell below the previous year’s level as the fashion-related EC & luxury market experienced the impact of rising the prices caused by inflation overseas and the rapid depreciation of JPY, as a result, the consumer sentiment, especially light users, deteriorated. We expect that uncertain and opaque conditions will continue in the future, including the risk of exchange rate fluctuations, and we recognize that expanding sales of our overseas business, rather than relying on the domestic market, is necessary in order to achieve continued growth.