February 12, 2019 Rakuten, Inc. · 4 design from day 1 5G Enabled IPv6 5 Transport/Mobile Backhaul SDN Enabled Centralized and 6 Regional Datacenter 7 Common Hardware SKU’s End

February 12, 2019

Rakuten, Inc.

2

33

44

55

Consolidated Revenue Global GTV Domestic EC GMS

Rakuten Card GTV Rakuten Securities Accounts

1.1 tn 3.4 tnJPY

7.5 tnJPY 3 mm

15.4 tn

7 mm

Rakuten Bank Accounts

JPY JPY

surpassedsurpassed

66

+10.5% YoY

Q4/18

Membership Value

JPY

Q4/17

Membership Value

Successful SPU program enhanced cross-use resulting in increase of active users, providing growth of

membership value

JPY

7

88

9

10

Fully-virtualized RAN:- End-to-end automation

- Programmable infrastructure

Rakuten overall architecture

Scalable 5G-readyLow cost/

investment

Agile to

upgrade servicesStable1 2 3 4 5

Rakuten

Hybrid CloudIPv6 based 5G Ready

Transport Network

for Backhaul

vRAN

4G/5G

vRAN

4G/5G

Internet

11

Total value creation throughout Rakuten ecosystem

Low CAC

Cross-use

Brand x Membership

Low cost

operation

Current cross-use

ratio:~70%

Membership in

Japan1:

103 million

Those who have

done KYC2 :

18 millionExpected

expansion of LTV

per user3 :

x4~6 High LTV

(Life Time Value)

12

Lean hardware & cell design

Low

CAPEX

Low

OPEX

•Simplified site design

•Standardized hardware

•Open source (No vendor lock-in)

•Standardized SKUs to <10

(vs. ~600 SKUs in traditional operators)

•Highly-efficient operation

•Full automation

•No need for site visit by

expensive engineers

Open, Virtualized, Disaggregated

RAN1

Common and Distributed Telco

Cloud with NFVI2

Regional Datacenter and Mobile

Edge Computing3

5G Systems Architecture based

design from day 14

5G Enabled IPv6

Transport/Mobile Backhaul5

SDN Enabled Centralized and

Regional Datacenter6

Common Hardware SKU’s7

End-to-End Infrastructure &

Service Automation8

United OSS/BSS9

We Dared to Make the Impossible, POSSIBLE

Completed in under 8 Months!

Content

B2B

Experience

Connectivity

Service Provider

Customer

Affiliation

Disruptive Architecture

Wants to Sell ExperienceSells Connectivity

Business Model &

Customer Affiliation (Rakuten ID, Credit Card

user base)

Software Centricity

New

Services

Content Leadership

Other Providers Rakuten MNO

Users

Radio

Infrastructures

Resiliency

Operations

Handset

Dedicated RAN

Legacy network

Hardware driven

Traditional NOC

Mobile, IOT, Enterprises

Virtualized RAN

Distributed Cloud Native

Microservices based

Virtualized iSOC

1717

Commencement of network testing in Futakotamagawa area in Tokyo as of February 3, 2019

The first real-world end-to-end test in a fully virtualized cloud native mobile network completed successfully

Mobile Network Test

18

Construction of radio stations under way

Radio station above Rakuten’s HQ

19

4x4 MIMO2x Traditional Network

Cloud InfrastructureFully Virtualized Network

64

QAM

256

QAM

256 QAM25% More DL Capacity

Fully Automated

Network Operation

Best Interference

Management

Smooth Upgrade to

5G

Ultra Low Latency

20

Altiostar’s virtual RAN solution enabling end-to-end virtual RAN network

Building world’s first end-to-end virtual RAN Network

21

Announcement

of entry into

MNO business

4G spectrum

allocation from

MIC

5G trials

with Nokia

Collaboration

with Tech Mahindra

Comprehensive

agreement with KDDI

including roaming

5G trials at Rakuten

Seimei Park Miyagi

Construction of radio

stations started

End-to-end tests in

a fully virtualized

cloud native mobile

network

Dec/17 Oct/18

Nov/18

Dec/18

Apr/18 Feb/19

• 4K video

• 3D 360-degree

VR live streaming

• Remote delivery robot

• Drone-based identity verification

• 8K VR video streaming

Set up world-class 5G labs

in Tokyo and Bengaluru

Announcement of

strategic investment

to Altiostar

22

23

Aim to promote cashless payments

Rakuten, Inc.

Rakuten Mobile

Network Inc.

Rakuten Card

Co., Ltd.Rakuten

Payment, Inc.

Other domestic

and overseas

subsidiaries etc

Newly-established

24

Update of current Rakuten Pay App with all payment solutions embedded into one platform

Release scheduled on March 18, 2019

Rakuten Edy

(FeliCa Based e-money)

Rakuten Points and Rakuten Cash

can be used for payment

Credit Card (Rakuten Card / Visa/

Master) is linked background

Barcode & QR code Payment

Rakuten Point Card barcode

25

Under the “smart stadium concept”, Rakuten’s professional baseball and football club will roll out fully

cashless payment systems within their home stadiums

Payment by Rakuten Pay

Rakuten Seimei Park Miyagi

Noevir Stadium Kobe

Payment services by Rakuten

Debit (JCB/Visa)

26

27

2828

Domestic E-Commerce GMS growth accelerated in the latter half of 2018

Domestic E-Commerce GMS YoY

(% YoY)

*1 Domestic E-Commerce GMS includes consumption tax. Consumption tax not included in GMS for businesses not required to pay consumption tax.

GMS comprises Ichiba, Travel GTV on checkout basis, Books, Golf, Ticket, Brand Avenue, Dream businesses, Rakoo, Beauty, Mart, Delivery, Rakuten Direct, Car Life, Coupon,

Rakuma, Rakuten Delivery Premium, Rebates, Raxy, Rakuten Seiyu Netsuper, etc. *2 Definition of GMS for first party businesses was revised mainly upon the merger between Soukai Drug and Kenko.com. This has resulted in retroactive adjustments to

Domestic E-Commerce GMS as of Q3/17

29

Logistics network

Delivery services

Improving UX of

delivery

Growth of Rakuten Ichiba

and merchants

Promoting further growth of Rakuten Ichiba by expanding logistics network and delivery services

3030

Rakuten Fulfillment Center Nagareyama

Rakuten Fulfillment Center Hirakata

• Operation launch: January 18 2019

• Leased area: approx. 80,000 square meters

• Location: Nagareyama, Chiba

• Operation launch: January 21 2019

• Leased area: approx. 75,000 square meters

• Location: Hirakata, Osaka

• Operation launch: March 2019

• Operate Kantsu’s DC as RSL satellite

• Rakuten Express delivers parcels that Kantsu accepts from their clients

• Location: Amagasaki, Hyogo

Capital and strategic alliance

with Kantsu Co., Ltd

Ichikawa

Sagamihara( Rakuten Direct)

Kawanishi

Kashiwa(Rakuten Seiyu Netsuper)

31

2%

19%

Tokyo

Saitama

Chiba

Kanagawa

Osaka

(Rakuten Books)

Population

coverage*2

*1 The 23 wards of Tokyo and 14 cities in metropolitan Tokyo, 4 cities in Chiba Prefecture, Kawasaki and Saiwai in Kawasaki City in Kanagawa Prefecture,

the 24 wards of Osaka City as well as Sakai City in Osaka Prefecture, 6 wards of Saitama City and other 4 Cities in Saitama Prefecture.*2 From 2017 November to 2019 February(Planned)

Coverage Area*1 / Population Shipping Expansion

Other Services

“Oki-hai” for

reducing redeliveries

Specified delivery

time until 24:00

(Apparel)

3232

on deliveries for all merchants

33

3434

FY2017 FY2018 YoY

Revenue 944.5 1,101.5 +16.6%

Non-GAAP Operating Income 167.0 161.1 -3.5%

IFRS Operating Income 149.3 170.4 +14.1%

Revenue and IFRS Operating Income

at record highs

(JPY bn)

3535

Q4/17 Q4/18 YoY

Revenue 268.0 311.2 +16.1%



(JPY bn)

Revenue at record high

3636

FY2017 FY2018 YoY

Domestic E-Commerce

Revenue 390.9 426.8 +9.2%

Operating Income 74.6 61.3 -17.7%

Communications & Sports

Revenue 90.0 111.0 +23.4%

Operating Income -6.2 -12.0 -5.9

Other Internet Services

Revenue 199.5 250.6 +25.6%

Operating Income 32.4 46.4 +43.5%

Internet Services Segment

Revenue 680.3 788.4 +15.9%

Operaing Income 100.8 95.7 -5.0%

FinTech Segment

Revenue 333.2 410.8 +23.3%

Operating Income 72.8 79.9 +9.7%

Adjustments

Revenue -69.0 -97.7 -28.7


Consolidated

Revenue 944.5 1101.5 +16.6%



(JPY bn)

3737

(JPY bn)

Q4/17 Q4/18 YoY

Domestic E-Commerce

Revenue 105.7 122.1 +15.5%


Communications & Sports

Revenue 24.2 27.3 +13.1%


Other Internet Services

Revenue 67.7 82.8 +22.4%

Operating Income 1.4 -4.7 -6.0

Internet Services Segment

Revenue 197.6 232.2 +17.5%

Operaing Income 17.6 3.7 -79.0%

FinTech Segment

Revenue 89.4 108.1 +20.9%


Adjustments

Revenue -19.0 -29.2 -10.2


Consolidated

Revenue 268.0 311.2 +16.1%



3838

(JPY bn)

Revenue YoYOperating

IncomeYoY

Card 187.1 +16.4% 33.1 +6.5%

Bank 82.5 +9.5% 25.7 +17.9%

Securities 59.7 +17.8% 21.2 +15.4%

Life Insurance 30.6 -5.6% 3.3 +89.6%

Others 18.6 +33.5% 0.0 + 0.18

FinTech Total excl. General Insurance 378.5 +13.6% 83.3 +14.4%

General Insurance 32.3 - -3.4 -

FinTech Total 410.8 +23.3% 79.9 +9.7%

3939

Revenue YoYOperating

IncomeYoY

Card 51.3 +19.1% 7.5 -7.8%

Bank 21.4 +8.5% 6.6 +13.0%

Securities 15.3 +5.0% 5.0 -15.1%

Life Insurance 7.5 -7.5% 0.9 +1.09

Others 6.6 +71.3% -0.5 -0.35

FinTech Total excl. General Insurance 102.2 +14.3% 19.6 -0.1%

General Insurance 5.9 - -0.5 -

FinTech Total 108.1 +20.9% 19.1 -2.7%

(JPY bn)

4040

Upfront investments for future growth・Mobile business investments, costs

・Logistics-related investments, costs

・NBA broadcasting rights*

・Partnership costs-0.5-1.8 +1.6

-4.6

-8.7

(JPY bn)

Other Internet

Services

Communication

and Sports(excl. Mobile business)

Domestic

E-commerce(excl. logistics

related investments,

costs)

FinTech

・Rakuten Brazil system

impairment loss

・Ebates, Rakuten France

rebranding costs

・Rakuten Marketing

reorganization cost

33.4

18.8

Q4/17

Gains from

Investment

business

2.1

1.5Q4/18

Gains from

Investment

business

Excluding upfront investments of existing business

31.326.0

Q4/17

Operating Income

Q4/18

Operating Income

Q4/17

Operating Income

(excl. gains from

investment business)

Q4/18

Operating Income

(excl. gains from

investment business,

upfront investments for

future growth)

* NBA broadcasting rights are included in “Other Internet Services”

4141

+1.8 -2.0

-4.9

Q4/17

Domestic E-Commerce

Operating Income

Growth of Marketplace

business・Rakuten Ichiba

・Rakuten Travel

・Rakuten GORA etc.

Investing phase business・Rakuma

・Rakuten Brand Avenue

・Rakuten Books

・Rakuten BIC

・Rakuten Seiyu Netsuper etc.

Logistics-related investments / costs

etc.

Q4/18

Domestic E-Commerce

Operating Income

(JPY bn)

4242

Profitable /

Loss improvement

businesses

Investing phase

businesses

Under brand

change process

FY2018 OI YoYQ4/18 OI YoYProfitable businesses Loss-making businesses

Deutschland

FranceJPY

-1.2bnJPY

-1.3bn

JPY

-0.3bnJPY

-2.7bn

JPY

+1.2bnJPY

+3.3bn

43

+1,422

ROI

+74%IRR

+24%

Initial investment(2012 to date)

Fair value(As of December 2018）

Gain

3,348

1,926

(USD mm)

4444

Investment business has shown a great track record in last three years and accelerated the exit

Evaluation gains from

investment business

Record high

Exit amount(JPY bn)

(JPY bn)

Book value

at year end (JPY)171bn 291bn 368bn

* including gains on sale of shares

4545

*1 Global Gross Transaction Value = Domestic E-Commerce GMS + Credit Card GTV + Edy GTV + Rakuten Pay GTV+ Rakuten Point Card GTV + Overseas E-Commerce GMS +

Ebates GMS + Digital Contents GTV + Rakuten Marketing GTV*2 Includes intercompany transactions for settlement and affiliate services

+20.4％ YoY

(JPY tn)

4646

+12.9％ YoY





(JPY bn)

47

Rakuten,

Inc.

Rakuten

Communications Corp.

Rakuten Card Co., Ltd.

Rakuten Edy, Inc.

Rakuten Insurance

Holdings Co., Ltd.

Rakuten Securities, Inc.

Rakuten Bank Ltd.

Rakuten Investment

Management, Inc.

Other Domestic and

Overseas Subsidiaries etc.

Rakuten Mobile

Network Inc.

Spotlight Inc.*

everybody’s

bitcoin Inc.

Rakuten,

Inc.

Rakuten Card

Co., Ltd.

Rakuten

Payment, Inc.

Other Domestic

and Overseas

Subsidiaries etc

Rakuten Mobile

Network Inc.

everybody’s bitcoin Inc.

Rakuten Edy, Inc.

Rakuten Investment

Management, Inc.

Rakuten Insurance

Holdings Co., Ltd.

Rakuten Securities, Inc.

Rakuten Bank

Ltd.

Rakuten

Communications Corp.

and others

Mobile

business

Internet

Services

business FinTech

business

Payment

business

～

48

49

Ad Revenue in 2018

96.3 bn

+14.2% YoY

Growth Rate of Order Amounts

＋37.5Approx.

% YoYJPY

50

* Revenue includes internal transactions. Revenue in 2017: JPY84.3bn（Revised from the figure disclosed in the 3rd quarter of 2018）

Revenue in 2018: JPY96.3bn (+14.2％ YoY)*

Growth rate of revenue to external advertisers:+16.5％ YoY

[Advertiser]External（National Brand）

Internal（Ichiba Merchants, etc.）

[Inventory]

Internal（Rakuten site）

External

＋16.5% YoY

＋13.2% YoY

51

* Revenue includes internal transactions

Strengthened industry specific sales structure

Accelerate growth trends through strong internal inventory revenue streams from Ichiba, Travel, etc., and

extension of business with external advertisers

[Advertiser]External（National Brands）

Internal（Ichiba Merchants, etc.）

External2018 Advertising

Revenue

96.3bn*

New Product[Inventory]

Internal（Rakuten Site）

RMP - Brand Gateway

RMP - Customer Expansion

RMP -AdRoll

Rakuten Ichiba

Rakuten Travel, etc.

RMP -Trading Desk

53

54

5555

(IFRS, JPY bn)

FY2017 FY2018 YoY


Amortization of Intangible Assets (PPA) -7.8 -11.0 -3.2

Stock Based Compensation -7.5 -7.8 -0.3

One-off items -2.4 28.1 +30.5


5656

Q4/17 Q4/18 YoY


Amortization of Intangible Assets (PPA) -2.1 -3.2 -1.1

Stock Based Compensation -2.1 -2.3 -0.2

One-off items 0.0 23.6 +23.6


(IFRS, JPY bn)

5757

*1 Rakuten, Inc., Rakuten Bank, Ltd., Rakuten Card Co., Ltd., Rakuten Securities, Inc., Rakuten Life Insurance Co., Ltd., and Rakuten General Insurance Co., Ltd.

are based on IFRS non-consolidated balance sheets.*2 Bonds and borrowings = Corporate bonds + CP + Borrowings

(JPY bn)

5858

* “M&A and investments” includes “Increase and Decrease in restricted deposits”, “Purchase of investment securities” “Acquisition of investments in associates

and joint ventures” and “Proceeds from sales and redemption of investment securities” of Non-Financial activities in addition to “Acquisition of subsidiaries”

(JPY bn)

Non-Financial Businesses Financial Businesses M&A,

InvestmentsCommon

Operating CF

(Excl. Tax)

Tax

Profit (adjusted)

Change in

assets &

liabilities

Tax

Change in

investment

securities

Other investing CF

Investing FinancingOperating

Operating Investing Financing

Increase in cash and

cash equivalents

+206.5


cash equivalents

+74.2


cash equivalents

+8.7

700.9

990.2

Balance of cash

Dec 31, 2018Balance of cash

Dec 31, 2017

5959

+18.4％ YoY

(JPY tn)

*1 Global Gross Transaction Value = Domestic E-Commerce GMS + Credit Card GTV + Edy GTV + Rakuten Pay GTV+ Rakuten Point Card GTV + Overseas E-Commerce GMS +

Ebates GMS + Digital Contents GTV + Rakuten Marketing GTV*2 Includes intercompany transactions for settlement and affiliate services

60

6161

Operating Income

-7.8% YoY

Revenue

+19.1% YoY

(JPY mm)

Operating Income -7.8% YoY due to increase in allowances for doubtful accounts after applying IFRS 9

standards and SPU related costs

6262

Card Shopping Transaction Value

* Calculated on a managerial accounting basis, using different definitions from data in the Appendix.

Detailed credit card data is shown in the Appendix. Revolving balance is calculated on a principal basis.

Shopping Revolving Balance

(JPY bn) (JPY bn)+23.8% YoY +21.8% YoY

6363

Shopping Revolving and Cash Advances Balance

(JPY bn)

Cash Advances

+21.9% YoY

Shopping Revolving

+21.8% YoY


Detailed credit card data is shown in the Appendix. Revolving balance is calculated on a principal basis

6464

Shopping GTV exceeded 7tn in 2018


Detailed credit card data is shown in the Appendix.

(JPY tn)

6565

*1 Ratio of expenses related to doubtful accounts= (Expenses related to doubtful accounts) / (average of total balance of loan receivables at beginning and end of the period) × 4

*2 Balance of Rakuten Bank Super Loans guaranteed by Rakuten Card*3 Including allowance for credit guarantees from Q1/18*4 Write-off for bad debt includes loss on transfer of loan receivables

(JPY mm)

Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 YoY

Expenses related to doubtful accounts 7,377 7,983 8,078 9,515 10,403 41.0%

Ratio of expenses related to doubtful accounts*1 1.93% 1.99% 1.98% 2.27% 2.31% －

Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 YoY

Rakuten Card 1,222,083 1,217,549 1,263,110 1,317,899 1,502,530 22.9%

Stage 1 (Normal) 1,151,449 1,148,457 1,196,212 1,248,131 1,433,457 24.5%

Stage 2 (1-2 months delinquent) 10,613 11,541 8,876 10,040 8,862 -16.5%

Stage 3 (3 months-and-over-delinquent/Restructured Loans) 60,022 57,551 58,023 59,727 60,211 0.3%

379,549 388,818 387,696 387,662 387,863 2.2%

Stage 1 (Normal/Credit gurantees*2

) 346,454 352,702 350,442 349,683 350,184 1.1%

Stage 2 (30 days-and-over-delinquent/Credit gurantees*2

) 128 161 175 195 143 11.5%

Stage 3 (Foreclosed credit guarantees) 32,967 35,954 37,079 37,784 37,536 13.9%

Others 1,623 1,563 1,504 1,472 1,430 -11.9%

Total balance of loan receivables 1,603,255 1,607,929 1,652,310 1,707,032 1,891,823 18.0%

Allowance for doubtful accounts*3 34,955 86,560 86,412 88,519 88,741 153.9%

Write-off for bad debt*4 8,165 8,395 8,222 7,366 10,183 24.7%

Rakuten Bank Super Loans

6666

Operating Income +13.0％ YoY due to increase in loan receivables balance

Revenue

+8.5% YoY

Operating Income

+13.0% YoY

(JPY mm)

6767

*1 Based on IFRS which includes derivatives in structured term deposits.*2 Other deposits include deposits in foreign currencies and others.

Other Deposits*2

+12.0% YoY

Time Deposits

+5.7% YoY

Ordinary Deposits

+34.2% YoY

(JPY bn)

6868

Others

+40.3% YoY

Housing Loan

+37.0% YoY

Rakuten Bank

Super Loan

+0.6% YoY

(JPY bn)

6969

Marketing and SPU cost for user acquisition lowered OI growth

Operating Income

-15.1% YoY

Revenue

+5.0% YoY

(JPY mm)

7070

Successful SPU program and cross-use strategy triggered rapid growth in new account openings

(Thousands of accounts)

Rakuten Bank Rakuten Securities

(Thousands of accounts)

7171

Operating IncomeRevenue

(JPY mm) (JPY mm)-7.5% YoY +1,090mm YoY

Termination of reinsurance policies caused a decline in revenue, however insurance premiums continue to

show strong growth, resulting in OI +1,090mm YoY

7272

+40.2% YoY

New Business ANP: +40.2% YoY

New Business ANP in direct marketing channels*1: +10.9% YoY

Q4/18 Q4/18

New Business ANP Growth*2 Direct Marketing*1 New Business

ANP Growth*3

+10.9% YoY

*1 Internet & mail-order*2 Annualized insurance premiums for new policies in Q4/18, excluding one-year cancer insurance for eligible Rakuten members which started from Q4/14.*3 Annualized insurance premiums for new policies through direct marketing channels in Q4/18, excluding one-year cancer insurance for eligible Rakuten

members which started from Q4/14.

7373

• Online application for

Bicycle Insurance（2018/10/22～）

• Super Simple Insurance

• Extended warranty for home appliances

• Group insurance for merchants

• Complementary Insurance

• Casualty Insurance to Members

• Fire insurance for homeowners


Fire Insurance（2018/12/12～）

• Cross-sales within Rakuten

Insurance Holdings

(e.g. Pet Insurance)


Household Insurance（2019/2/1～）

• Golfer’s Insurance

• Travel Insurance

74

7575

(JPY tn)

+11.2％ YoY





7676

* Domestic E-Commerce = Ichiba, Travel, Books, Golf, Ticket, Brand Avenue, Dream businesses, Rakoo, Beauty, Mart, Delivery, Rakuten Direct, Logistics

Car Life, Coupon, Rakuma, Rakuten Delivery Premium, etc.

(JPY mm)

Revenue

+15.5% YoY

Operating Income

-27.3% YoY

7777

* Mobile GMS Ratio = Ichiba mobile GMS / Total Ichiba GMS (includes feature phones, smartphones, and tablets

70.2%Up 6.0 Points YoY

7878

Rakuten Card share of Ichiba GMS is consistently growing

7979

Data

Membership

ID

Reward

program

Rakuten’s assets and solutions

“Oki-Hai” delivery

Push notification of delivery

Japan Post and HAKO POST Pickup

Plenty of data of product

characteristics, price and

destination

Information of over

100mm Rakuten IDs

and many touch points

with users

Methods using Rakuten

Super Point as incentives

Allowing customers to designate

a location for delivered goods to

be left on their property when they

are absent

Sending push notification to

customers via Rakuten Ichiba app

and Viber app etc. to promote

acceptance of goods

Reduce redeliveries by giving points

to customers (Funded by savings

generated through logistical efficiency

improvements)

Q2/18~

Q4/18~

Q1/19~

Existing

shipping carrier

Limited access to users’

information and direct

touch point

Limited tools and

methods to impact

user behavior

Limited access to

data of product

characteristics

and destination

Promote Rakuten Ichiba growth by improving logistical efficiency

and UX improvement on delivery

8080

* Includes Cartera acquired in Q1/17, ShopStyle acquired in Q2/17

(USD mm)

+11.0% YoY

8181

(USD mm)

USD-6.2mm

YoY

* Includes Cartera acquired in Q1/17, ShopStyle acquired in Q2/17, and Rebates

8282

(USD mm）

Operating

Income

USD-4.6mm

YoY

Revenue

+4.1% YoY

83

8484

* Unique IDs: Unique phone numbers excluding deactivations

(Million IDs)

8585

* Telco: Viber Out, In. Content: Service messages, ads, stickers and others

Monetization accelerating on strong growth in both Telco (Viber in/Out) and content revenue

Content

44%

Telco

56%

Content

61%

Telco

39%

Total revenue

+36.1% YoY

86

In 2017, establishment of Rakuten materiality = list of

concerns that Rakuten has a responsibility to address to

realize long-term business growth

Concerns reflecting stakeholders’ voice (vertical axis) and

business strategy (horizontal axis)

Survey answered by ~2,500 stakeholders (employees,

business partners, end-users)

Based on results, redefinition of sustainability action plan

Improvement of sustainability reporting = ESG

(Environmental, Social, Governance) information disclosure

Redefinition of philanthropic activity priorities

Social innovation / Sustainable consumption / Local

communities / Humanitarian aid

Launch of projects based on new priorities

ex: “Earth Mall with Rakuten” for sustainable

consumption

87

In 2018, improvement of ESG information disclosure – corporate website, FY2017 corporate report -

positively recognized by MSCI (Morgan Stanley Capital International) MSCI: one of major ESG rating agency, with ESG indexes notably used by Japan’s Government Pension

Investment Fund (GPIF) for its portfolio management

Improved by 2 ranks, Rakuten was rated “A” in 2018, and was selected as constituent of 3 indexes, including

ESG Leaders Indexes

MSCI’s Japan snapshot 2018

“Among the MSCI Japan IMI Top 500 Index, Rakuten was the only

company to improve its rating by 2 compared to last year. The

strengthening of its measures for the protection of personal

information was the main reason. Besides the establishment of

protection policies for each country where business activities are

conducted and the implementation of training courses for all

employees, the introduction of encryption technologies was observed.”

2017 2018

88

This presentation includes forward-looking statements that reflect management’s current assumptions and expectations of future events, and

accordingly, they are inherently susceptible to uncertainties and changes in circumstances and are not guarantees of future performance. Actual

results may differ materially, for a wide range of possible reasons, including general industry and market conditions and general international economic

conditions. In light of the many risks and uncertainties, you are advised not to put undue reliance on these statements. The management targets

included in this presentation are not projections, and do not represent management’s current estimates of future performance. Rather, they represent

targets that management strive to achieve through the successful implementation of the Company’s business strategies. The Company may be

unsuccessful in implementing its business strategies, and management may fail to achieve its targets. The Company is under no obligation - and

expressly disclaims any such obligation - to update or alter its forward-looking statements. Names and logos of companies, products, and services and

such that appear in this material are trademarks or registered marks of their respective companies.

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February 12, 2019 Rakuten, Inc. · 4 design from day 1 5G Enabled IPv6 5 Transport/Mobile Backhaul SDN Enabled Centralized and 6 Regional Datacenter 7 Common Hardware SKU’s End