1

From Japan to the World

July/2012

Rakuten, Inc.

http://www.rakuten.co.jp/

2

Maybe a Review?

Founded in 1997

“More than a Company”

Empower our Customers

Build their own Businesses

Take advantage of Internet

Shopping is Entertainment

Empower Consumers

Enjoy savings

Enjoy variety

3

The Difference between

Competitors and Rakuten EC Sites

[Major Global

E-commerce Competitors]

Product Centric

[Rakuten Ichiba]

Shop Centric

The Rakuten “Empowerment” model is

very unique and difficult to replicate

4

Competitor’s Approach

Merchants of

marketplace model

Customers

Limited access from merchants to customers

Competitor A

direct sales model

5

Rakuten’s Approach

Live!

Live!

Live!

Live!

Live!

Live!

Live!

Live! Live!

Live!

Live!

Live! Live!

Live!

Live!

Live!

Dynamic and synergetic shopping mall

with various types of merchants

6

Merchants are Empowered to Build their Own

Businesses

Social Significance of Rakuten Ichiba

7

Competitor Approach

Merchant G Shop Page

Merchant U Shop Page

Internet as Virtual Vending Machine

8

Our Approach

Merchant M Shop Page

Merchant P Shop Page

Internet as Virtual 商店街

Merchant G

Shop Page

9

In other words…

Shopping is Communication

Communication is Entertainment

∴ Shopping is Entertainment!

10

241.8

259.3 255.2

315.2

276.1

333.3

309.3 306.2

362.5

0

200

300

400

Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12

(JPY bn)

*: Domestic E-Commerce = Mall (Fixed-price, Group purchase), Mobile, Business, Golf, Books, Auction (Flea market), download, tickets,

Internet Supermarket, Check Out, Off-track betting, toto, ShowTime, Media rental and Dining (Q1/10~ retroactively added))

Domestic E-Commerce Turnover (GMS)

Domestic E-Commerce GMS: +20.7% YoY

GMS growth of Rakuten Ichiba and Books: +19.8% YoY

11

10.1810.02

10.71 10.74

11.72

11.68

0

8

10

12

Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12

(Million)

Unique buyers*

38.44

36.29

41.1740.33

46.2346.74

0

30

40

50

Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12

Number of transactions(Million)

*Unique Buyers: Number of buyers sorted by e-mail address with purchasing records during the listed 3 month period.

Rakuten Ichiba

Unique Buyers* and Transactions

12

Potential Growth of Unique Buyers

*1: Rakuten Members: Number of ID registrants for Group’s various services such as Rakuten Ichiba, Rakuten Travel, Infoseek, Auction, etc.

*2: Unique Buyers: Number of buyers sorted by e-mail address with purchasing records per quarter

*3: Internet Users in Japan source: Ministry of Internal Affairs and Communications

Rakuten Member

76.80 million

Rakuten Ichiba

Unique Buyers

11.68million

(Jan-Mar, 2012)

Total Internet Users

in Japan

94.62 million

http://www.soumu.go.jp/johotsusintokei/field/data/gt010101.xls

総務省の統計ページ。

13

Core Strategy

Membership Business on the Internet

Internet Service

Membership Business

+

The objective of Rakuten Group is to converge Internet Services

with the Membership Business

14

Corporate History - Domestic

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

15

・Shopping mall

・Auction

Customer Flow

Rakuten

Membership Database

E-Commerce

Portal

&

Content

Travel

Banking

Card

Telecom

Securities

E-Money

Rakuten Eco-system Strategy

・Hotels and Facilities

・Air Tickets

・Dynamic Packages

・Stocks

・Bonds

・Trust Funds

・FX

・Advertisement

・Streaming

・Downloading

・Recruitment

・Marriage

・Credit Card

Rakuten Super Point

・Payment

・Consumer Loan

Common ID

・Fixed IP Telephony

・Mobile IP Telephony

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*1: Edy Transaction Value = Amount settleｄ by E-Money “Edy” (including mobile and cards) (Q1/10-) *2: Credit Card Shopping Transaction Value = Shopping Transaction Value of credit cards (including Rakuten group service use) *3: Travel (before cancellations, excluding tax) = Domestic/international accommodation bookings, International air tickets, Domestic/international dynamic packages, bus services, rent-a-car and pet hotel (retroactively added) services

*4: Domestic E-Commerce = Mall (Fixed-price, Group purchase), Mobile, Business, Golf, Books, Auction (Flea market), download, tickets, Internet Supermarket, Check Out, Off-track betting, toto, Showtime, Media rental and Dining (Q1/10~ retroactively added)

Quarterly Domestic Gross Transaction Value

(Including Credit Cards and E-Money)

Domestic Gross

Transaction Value

+23.9% YoY

Edy and

Credit Card

+28.2% YoY

*1

*2

Travel

+17.0% YoY

*3

Domestic

E-Commerce

+20.7% YoY

*4

241.8 276.1333.3

81.893.2

109.0

266.9

362.7

464.9590.6

732.1

907.3

0

200

400

600

800

1,000

Q1/10 Q1/11 Q1/12

(JPY bn)

17

*: Purchasing ratio of Rakuten members who have utilized other Rakuten services during the past 12 months of the listed month. Applicable services are limited to those which can earn Rakuten Super Points (excl. Securities)

Cross-Use Ratio

Enhanced Cross-use Ratio*

42.1%

45.7%47.5%

0%

10%

20%

30%

40%

50%

60%

Mar/12Mar/11Mar/10

18

*: Purchasing ratio of Rakuten members who have utilized other Rakuten services during the past 12 months of the listed month. Applicable services are limited to those which can earn Rakuten Super Points (excl. Securities)

Cross-Use Ratio

Enhanced Cross-use Ratio*

42.1%

45.7%47.5%

0%

10%

20%

30%

40%

50%

60%

Mar/12Mar/11Mar/10

Growth in Cross-Use Ratio

Demonstrates Consumers

find Value in our Model

19

Corporate History – Global

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

20

Rakuten Global Map

USA

Canada

Brazil

France

UK

Ireland

Germany

Netherlands

Austria

Spain

Australia

New Zealand

China

Taiwan

Thailand

Indonesia

Republic of Korea

Singapore

21

GMS Ratio from Overseas Companies

Q1/12

GMS from

EC companies

in Japan

91.9%

GMS from

overseas

EC companies

8.1%

22

International Turnover

23

International Turnover

24

International Turnover

25

International Turnover

“Buy from People –

Not the Internet”

26

Handelsblatt (Jan 23):

Japanese Internet Giant

Rakuten to Challenge Amazon

InternetWorld (Jan 31):

Rakuten Chief: “In 5 Years We

Will Be No. 1 (in Germany)”

The Guardian (Feb 5):

Why Rakuten’s Kobo is Amazon’s Only

Global Competition

Recent Press Reports on Rakuten

(UK, Germany)

27

Valor Economico (Feb.5):

Rakuten Focuses on Brazil in

Globalization Effort

Recent Press Reports on Rakuten (Brazil)

28

SuperSale Synergies

Category KPI VS usual

per 24H

Travel Turnover +16.4%

Delivery Turnover +42.1%

Rakuten Edy Edy-ID Linkage & Charges +81.5%

Toolbar New download number +16.5%

Rakuten Card New member +19.2%

Rakuten 24 Purchases +7.2%

toto Purchases +24.5%

Golf Bookings +7.7%

Facebook new follower number +1,654%

twitter new follower number +6,316%

29

SuperSale!

Difference almost 2X.

Data Center Traffic

Akamai Traffic

Sales were 3X a normal day.

Supersale Normal Day Difference more than 2X

30

Global SuperSale

31

Why?

“More than a Company”

Empower our Customers

Build their own Businesses

Take advantage of Internet

Shopping is Entertainment

Empower Consumers

Enjoy savings

Enjoy variety

Empower the World