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Rakuten Malaysia Sdn. Bhd. | December 2012

Rakuten Overview

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Company Profile

Establishment:

Chairman & CEO:

February 7, 1997

Hiroshi Mikitani

Employees: 8,026 (as of Mac. 2012)

Market Cap: 1,150 Billion yen or US$14.8 Billion (JASDAQ, as of November 9, 2011)

Performance: (2011) (in USD)

Net Sales: $4,757.0 M (+9.8%) Operating Income: $951.7 M

EBITDA $1,209 M Gross Transaction Volume: $15.4 B

【e-G8 Forum May 24-25 Paris 】

3 1997 2011

Internet Shopping Mall

Portal Site

Personal Loan Credit Card

Security Brokerage

Online Hotel Reservation

Blog Internet Research

Mobile Auction Online Book Store

Marriage Information

Online Bank

Financial Services

E-Commerce

Portal and Media

Travel

Telecommunication

IP Telephony

Expanding Business Portfolio

Rakuten has built a portfolio to serve a wide array of user needs with various services offerings, building synergy amongst group business.

Global Business

Pay per view Video Service

Taiwan Thailand

2008 2009

USA France

2010

Indonesia Performance Marketing

2005

E-money

UK Brazil Germany

E-Book

2011

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One Stop Access: “Eco-system Strategy”

Rakuten Membership

Database

・Shopping mall

・Auction

Business

Application Business

Application E-Commerce

・Hotels and Facilities

・Air Tickets

・Dynamic Packages

・Stocks

・Bonds

・Trust Funds

・FX

・Advertisement

・Streaming

・Downloading

・Recruitment

・Marriage

・Credit Card

Customer Flow

Rakuten Super Point

Business

Application Business

Application Travel

Business

Application Business

Application Securities

Business

Application Business

Application Telecom

Business

Application Business

Application Portal/

Content Card

Business

Application Business

Application Banking

・Payment

・Consumer

Loan

Single ID

・Fixed IP Telephony

・Mobile IP Telephony

・E-money

E-Money

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Macro Environment

Malaysia and Singapore

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0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

2010 2011 2012 2013 2014 2015 2016

Indonesia Malaysia Philippines Thailand

Macro Environment 1

Source: Euromonitor, World bank

(USD) Malaysia Singapore Indonesia Philippines Vietnam Thailand

Population 28MM 5MM 234MM 90MM 87MM 64MM

GDP / Capita 14,255 41,122 3,990 3,539 2,774 7,907

Retail market 2011 2016 2011 2016 2011 2016 2011 2016 2011 2016 2011 2016

32B 39B 21B 25B 118B 162B 55B 72B 29B 38B 72B 102B

EC market 251M 568M 606M 931M 56M 141M 271M 380M N/A N/A 441M 711M

EC penetration 0.8% 1.4% 2.8% 3.8% 0.05% 0.09% 0.5% 0.5% N/A N/A 0.6% 0.7%

Internet user 17M 21M 4M 4M 36M 80M 11M 21M 28M 43M 22M 36M

EC Penetration* *Exclude Singapore and Vietnam (Vietnam :No data)

While ASEAN has total of 11 countries, Malaysia and Singapore are the top two countries with the highest EC penetration rate going forward.

Indonesia

Malaysia

Thailand

Philippines

3.7%

61.0%

20.7%

17.8%

Rakuten Malaysia

traffic source

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Malaysia’s Age Distribution has an ideal composition

<Japan> <Taiwan>

Macro Environment 2

Median Age (2010)

36.2 37.4

43.1 46.7

Age Distribution

<Malaysia>

Source: Euromonitor

Target Age Group

26.3 25.7

Target Age Group

(20-50’s) will expand

in the future

82.6%

7.8%

9.5%

92.4% 95.1%

5.2% 2.4% 2.9%

1.9% PC

Tablet

Mobile Phone

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What is

Rakuten Ichiba?

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C to C

Marketplace B to B to C

Marketplace

B to C

Inventory Model

Unique Business Model - Rakuten Ichiba

While Global EC Players are considered as “product centric”, Rakuten

tends to be “shop centric” and “empowers” the merchant

Shop Centric Product Centric Product Centric

“Shopping is Entertainment”

PRODUCT SPECIFIC

INDIVIDUAL-TO-INDIVIDUAL

AUCTION / BID

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Rakuten Ichiba Concept

Merchant

Shop

Users

C

1

Merchant opens

shop on

marketplace

2

User visits MP and

orders products on

shop sites

1

3

Merchant sends

products to user

Rakuten drives traffic to the MP

(e.g. Online/Offline Marketing,

loyalty program, newsletter etc.)

Rakuten operates the MP: site

updates, escrow service,

member service etc.

Rakuten provides online sales

know-how to merchants through

designated ECC(*2)

B

C

D

Transaction Rakuten’s Roles Online Shopping Mall Diagram

RMS(*1)

(*1) RMS: Rakuten Merchant Server (E-commerce platform) (*2) ECC: E-Commerce Consultant(consults merchants of EC know-how)

Rakuten approves to open shop

after screening of merchants.

A

Rakuten

Rakuten Ichiba (MP)

B

A

D

2a

Payment and

delivery info is sent

to the merchant.

User pays for goods

Outside Marketing

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2

2a

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What are the advantages

with Rakuten?

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Comparisons with other B2C sites

B2B2C Marketplace like Rakuten provides some significant advantages

over other B2C sites.

Other B2C Sites

Rakuten Rakuten Values

Business Relationship Supplier Merchant Rakuten “empower merchants”

Business / Brand Exposure

Your own shop page in Rakuten

Loyalty Program Rakuten Super Points program

System / Tools / Interface You can upload products, update

price / inventory etc.

Own Customer Data You have access to your customer

database

E-commerce Consultancy

Rakuten will provide knowledge on how to increase sales

Advertising & Promotions A&P campaigns to promote your

shop and products

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Benefits for Merchants

System

Traffic Knowledge

Storefront

Backoffice

Mail Magazine

Analytics

SEM / SEO

Social Media

Promotions

Newsletter

Analysis

Campaign

Success Cases

Operation Support

Rakuten empowers merchants in 3 main areas, in order to make sure

your online retailing a smooth and effective experience.

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What are the supports

from ECC

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E-Commerce Consultancy (ECC)

Rakuten supports your online business with E-Commerce knowledge and

know-how via our ECC.

Web Creation Guidance

Advise on how to create attractive and descriptive web page (shop & product page)

Order Management Assistance

Support on how to handle online order

Sales & Promotions

Data analysis and know-how to increase merchant’s revenue

1

2

3

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Sharing with the target of GMS on the month

Each ECC shares with merchants about the target of GMS.

It is the most important thing to advance the ECC activities.

Because it does not mean as long as merchants don’t start thinking by

themselves.

Current Goal

How to

Fill in the GAP

ECC is an empowerment partner for the merchant.

ECC has to share the target and current situation and consult with them how to fill the GAP.

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Campaign

Merchant’s campaign

to generate &

increase GMS

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Events

Many events to

attract more online

shoppers

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Support from our

SYSTEM

(RMS)

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RMS (Rakuten Merchant Server)

Training We provide on site training or via Skype (long distance)

RMS system i) Default template ii) Easy to learn and manage

Backend Support

We provide technical support

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Basic Store Creation Flow

Login to Rakuten system (RMS Main Menu)

Taking item photos

Planning category structure

Fill a CSV file and upload item information

Create Signboard, Left Navigation, Header and Footer

Put additional banners/texts on site (if any)

Select applicable payment method

Select applicable delivery method

Set a shipping cost

Basic steps to shop open

Login

Item

Registration

Web Page

Design

Delivery

Setting

Payment

Setting

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RMS Main Menu

Merchant Portal site will be provided for Rakuten Merchants.

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Item Upload

By using Bulk item upload system, you can list many products in one step!

1. Input all the info in

CSV file

1. Upload the CSV

file on the site.

* Please double-check

the price and other info

before upload.

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Shop Top Page

You can brand your company to put banner / Introduction as you like.

Search

Image Banner

Introduction

Link to item

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Item Page

After uploading the data, you can check the result on your item page.

Left side

Navigation

Signboard

Tag Line

and

Item Name

Specific

Info

-Picture

-Price

-Variation

-Stock

-Cart

-Shipping

-Payment

-SNS

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Basic Order Management Flow

Order

Thanks Mail

Payment

Shipment

Completion

Check order detail. (Product, Payment way, Delivery date)

Check if stock is available or not.

Check delivery cost (If necessary, change by delivery page)

Send ‘Thanks mail’ for each order.

Check if payment is already completed.

If the order is by credit card, recommend to wait 24hrs until shipping.

Deliver the product after payment is completed.

Input shipping date and change a shipping status.

The order is automatically considered as complete after 7days

past the shipping date.

Basic step of Order Management

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Our Partners

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Partnership

Rakuten Malaysia works with different trusted partners in different aspects

Payment Gateway Delivery

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Our Mission & Goal

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Executive Summary

1. Retail Market is clearly shifting from offline to online in

Malaysia / Singapore and will continue to do so.

2. Customers care about Security and Trust when shopping

online.

3. Currently, there are no leading Online Shopping Mall.

Now is the chance to take the First

Movers Advantage.

4. Rakuten will support you with Japan’s No.1 EC Know-how as

well as Global Knowledge.

Rakuten will become the No. 1 Trusted

E-Commerce Site in Malaysia / Singapore

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Appendix 1:

Media Coverage

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Mentions in local press

The Edge Financial Daily (25/5/2012) Sin Chew Daily (6/6/2012)

Berita Harian (25/6/2012) The Star (6/7/2012)

View more media clips here: http://www.facebook.com/media/set/?set=a.378185492229108.77006.349776005070057&type=3

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Appendix 2:

Our Merchants

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These are the leading retail chain stores operating in major shopping

malls AND online stores in Malaysia supporting Rakuten Malaysia.

Merchants On Board