Overview of Q2 2006

August 18, 2006 Rakuten, Inc

This presentation includes forward-looking statements relating to our future plans, targets, objectives, expectations and intentions. The forward-looking statements 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. 1 Contents

1 Q2/06 Financial Highlights

2 Rebuilding Successful Business Model for Rakuten KC

3 Rakuten Group Basic Strategy and Progress—Synergies

4 Key Management Issues and Initiatives

5 Operating Results by Segment 1. E-Commerce Business 2. Credit and Payment Business 3. Travel Business 4. Securities Business 5. Portal and Media Business 6. Professional Sports Business

2 1 Q2/06 Financial Highlights

3 1 Q2/06 Financial Highlights

Maintained high growth rate to post YoY rises in revenues and E-Commerce ordinary income of +76.4% and +70.6%, respectively Business ` Increase in expenses due to higher employee recruitment costs and point usage rate compared with Q1/06

Decrease in revenues of Rakuten KC’s credit business and Credit and Payment operating loss due to lower profit from securitization of loan Business ` receivables Steady growth at Rakuten Credit High growth in revenues YoY, but also higher content- Portal and Media development costs associated with Internet television, Business ` publishing and Infoseek businesses resulted in an operating loss

Maintained a growth, posting YoY rises of +53.3% and +68.6% Travel Business in revenues and ordinary income, respectively ` Maintained a high ordinary income margin of at least 40%

Revenues and ordinary income rose approx. 2.4x and 2.2x YoY, respectively, buoyed by growth in the number of accounts and trading volume Securities Business ` Ordinary income dropped 25% from the first quarter due to a stock market slowdown, reduction in commission fees, and point rewards

*With ordinary income, amortized consolidation adjustment account is deducted from SG&A expenses 4 2006/Q2 Summary of Consolidated Results 1 (YoY) Ordinary Profit Growth +52.9% YoY (Billion Yen) Ordinary Ordinary Revenues YoY YoY Profit Profit Margin

E-Commerce Business 13.77 +76.4% 4.28 +70.6% 31.1%

Credit and Payment Business 20.85 +1,971.8% -0.37 - -1.8%

Portal and Media Business 3.18 +47.5% -0.12 - -3.8%

Travel Business 2.46 +53.3% 1.20 +68.6% 48.7%

Securities Business 11.86 +135.8% 5.83 +124.4% 49.2%

Professional Sports Business 2.79 -16.8% 0.28 -70.7% 10.2%

Internal Elimination -1.79 - -0.71 - -

Consolidated 53.14 +161.7% 10.39 +52.9% 19.6%

Excluding Credit & Payment and Professional Sports 29.50 +85.0% 10.48 +73.3% 35.5%

*Excluding amortization of consolidation adjustment account from SG&A expenses 5 2006/Q2 Summary of Consolidated Results 1 (QoQ)

(Billion Yen) Ordinary Ordinary Revenues QoQ QoQ Profit Profit Margin

E-Commerce Business 13.77 +8.3% 4.28 -11.8% 31.1%

Credit and Payment Business 20.85 -7.5% -0.37 - -1.8%

Portal and Media Business 3.18 -2.2% -0.12 - -3.8%

Travel Business 2.46 +6.2% 1.20 +4.2% 48.7%

Securities Business 11.86 -0.7% 5.83 -25.0% 49.2%

Professional Sports Business 2.79 +297.0% 0.28 -127.0% 10.2%

Internal Elimination -1.79 - -0.71 - -

Consolidated 53.14 +1.9% 10.39 -12.1% 19.6%

Excluding Credit & Payment and Professional Sports 29.50 +2.0% 10.48 -15.9% 35.5%

*Excluding amortization of consolidation adjustment account from SG&A expenses 6 Quarterly Consolidated Revenues

06/2Q Revenues Growth +161.7% YoY Revenues excluding Credit & Payment and Professional Sports Growth +85.0% YoY

60,000 55,000 52,168 53,149 48,728 50,000 45,226 45,000

% 40,000 7 . 1 35,000 6 1 30,000 + 25,000 20,312 20,000 15,508 13,871 15,000 9,790 10,833 11,072 10,000 Consolidated Revenues (Million Yen) 5,000 0 2004 2005 2006 2004 2005 2006 2004 2005 2006 2004 2005 2006 1Q 2Q 3Q 4Q

7 Quarterly Consolidated Ordinary Profit (Excluding Credit & Payment and Professional Sports) (Excluding amortization of consolidation adjustment account)

06/2Q Ordinary Profit excluding Credit & Payment and Professional Sports Growth +73.3% YoY

14,000 12,568 12,000 10,483 10,510 10,000

7,741 8,000

6,095 6,000 5,511 % 4,900 .3 3 3,506 3,808 4,000 +7 3,446

2,000 Consolidated Ordinary Profit (Million Yen)

0 2004 2005 2006 2004 2005 2006 2004 2005 2006 2004 2005 2006 1Q 2Q 3Q 4Q

*For 05/1Q, Point Program cost estimates equal –116 million yen *Excluding amortization of consolidation adjustment account from SG&A exenses 8 Quarterly EBITDA (excl. Rakuten KC)

06/2Q EBITDA excluding Rakuten KC Growth +53.0% YoY

14,000 12,084 12,000 10,816 10,978

10,000 8,791

8,000 7,071 % .0 6,000 5,305 3 5,346 5 4,341 + 3,868 3,964 EBITDA (Million Yen) 4,000

2,000

0 2004 2005 2006 2004 2005 2006 2004 2005 2006 2004 2005 2006 1Q 2Q 3Q 4Q

* EBITDA = Operating Profit + Depreciation and amortization (recorded as operating costs)

9 Group Gross Transaction Value Continuous Growth in E-Commerce and Travel Business Approaching 1 Trillion Yen on an Annualized Basis

Total GTV 240 227.19 220 198.05 200 GTV of LinkShare (Consolidated from 180.87 180 05/Q4) 84.41 Domestic GTV 161.21 45.20 160 41.88 140 41.72 (Reference 114.09 Information) 120 99.63 102.38 100 83.38 (Billion Yen) (Billion 77.03 69.05 80 66.42 152.85 142.78 138.99 60 119.49 40 32.31 20 0 03/3Q 03/4Q 04/1Q 04/2Q 04/3Q 04/4Q 05/1Q 05/2Q 05/3Q 05/4Q 06/1Q 06/2Q （1$=113.19円）（1$=118.07円）（1$=117.47円）（1$=115.24円）

* GORA (from Sept 2003), MyTrip.net (from Oct 2003), Rakuten Download (from Jan 2004), Digipa Networks (from Apr 2004) are included * Overseas hotel bookings and international air ticketing included from 05/1Q

* International dynamic packaging of Rakuten Travel included from 06/1Q 10 Rebuilding Successful Business Model 2 for Rakuten KC

11 2 Rebuilding Successful Business Model for Rakuten KC(1)

Plan to transfer Rakuten KC’s credit business to Orient Corporation in November 2006 Streamline balance sheet and raise ROA

(Year ended March 31, 2006) Rakuten KC Loan balance approx. ¥850 billion

Credit business Total assets approx. ¥610 billion Credit card Consumer (auto loans, loan business business shopping credit, etc.)

Loan balance approx. ¥340 billion Loan balance approx. ¥500 billion

Total assets approx. ¥250 billion Business transfer Total assets approx. ¥350 billion (Separation and merger)

Rakuten KC Orient Corporation

Card Consumer loan Credit business business business

12 2 Rebuilding Successful Business Model for Rakuten KC(2)

Cross-sell services through credit cards

Streamline product lines at Rakuten KC to transform itself as an online credit card company and to maximize synergy with other group online verticals Increase value-added services to existing Rakuten members 1. Expand point reward campaigns encouraging use of multiple verticals into financial services 2. Bolster Group marketing Strengthen marketing targeted at members while giving due consideration to standards for the protection and use of personal information 3. Credit cards offering more benefits the more they are used Leveraging on the strong attractions for Rakuten Super Points

Further increasing value per each Rakuten members through capturingrevenues related to credit card payments

13 2 Rebuilding Successful Business Model for Rakuten KC(3)

Core business of financial services being offered to Rakuten Group Members Contribute to maximizing membership value

Rakuten Card Members 0.35 million

Rakuten Group Members Rakuten KC Card Members 33.76 million 2.43 million

Rakuten Securities Account Holders 0.6 million *Rakuten Card Members: As of August 17, 2006 *Rakuten Securities: As of July 31, 2006 *Rakuten Group Members, Rakuten KC Card: As of June 30, 2006 14 2 Rebuilding Successful Business Model for Rakuten KC(4)

Rapid increase of payments using Rakuten Card at Rakuten Ichiba

Payment by Rakuten Card at Rakuten Ichiba 4.0 60% 51.0% 51.2% 49.4% 3.5 47.5% 47.1% 48.0% 45.8% 46.7% 46.1% 50% 43.8% 43.7% 43.9% 3.0 40% 2.5

2.0 30%

(Billion Yen) (Billion 1.5 20% 1.0 8.4% 6.7% 7.5% 7.9% 5.0% 5.1% 5.3% 5.7% 6.0% 5.6% 6.2% 5.9% 10% 0.5

0.0 0% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2005 2006 Rakuten card payment Total credit card payment (%) Rakuten card payment (%)

* Fixed-Price Purchase made at Rakuten Ichiba (PC and mobile)

* Sum of Rakuten cards issued by Sumitomo Mitsui Card Co., Ltd and Rakuten KC Co., Ltd 15 3 Rakuten Group Basic Strategy and Progress — Synergies

16 3 -1 Rakuten Triangle Strategy (1) Cycle of Success of Rakuten Group

Business BusinessBusinessBusiness ApplicationApplication ApplicationApplication Monetization

Customer Brand Media/ Database Traffic Retention + Cross-selling Acquiring Traffic

+ Personalization +Customers 17 3 -1 Rakuten Triangle Strategy (2) Every member can easily use our services through the Internet Through the convergence of the Internet and membership business, the lifetime value of the members can be maximized

E-Commerce

Credit Card Travel

Membership

Portal Site Securities

Other Financial Services, etc.

18 3 -2 Achieving One-Stop Shopping (1)

Large increase in use of Rakuten Travel by Rakuten Ichiba users Cross-selling improved Dual Use of Rakuten Travel Point Campaign for new users by Rakuten Ichiba Users at Rakuten Travel 20.0% 20.0%

18.0%

16.0%

14.0%

12.0% 12.0%

10.0% Jan 05 Jan 06

* The ratio of use of Rakuten Travel during the trailing twelve months by the users who utilize Rakuten Ichiba shopping services in said month. 19 3 -2 Achieving One-Stop Shopping (2)

Cross-selling has been positively impacted through the Point Program The Ratio of Rakuten Members utilizing more than two services in each month

25% 23.1%

20% 18.6%

15% March 05 June 06

•The ratio of users utilizing a service which earned Rakuten Super Point in said month and utilizing the other services during the trailing twelve months • Limited to the services which can be earned Rakuten Super Point (excluding online brokerage service, etc.) 20 3 -2 Achieving One-Stop Shopping (3)

Accelerating Customer Flow from Rakuten Ichiba to Rakuten Securities

Percentage of New Accounts through Percentage of Rakuten Members of Rakuten Ichiba of Total New Accounts New Customers 40% 35.8% 36.5% 32.8%

30% 27.7% 27.7% 24.4% Non-Rakuten Rakuten Members Members s int 20% po 4.5 33.7％ 12.0% +2

10% 66.3％

0% 04/Q4 05/Q1 05/Q2 05/Q3 05/Q4 06/Q1 06/Q2

* Survey Results from New Customers 21 4 Key Management Issues and Initiatives

22 4 Key Management Issues and Initiatives

1. Make Upfront Investments for Growth and Achieve Balanced Earnings Through Higher Productivity

2. Strengthen Operational Capabilities Underpinning Growth and Secure Scalability

3. Progress

4. Make One-Stop Shopping a Reality

5. Create International Business Development Capabilities With a View to Full-Scale Global Development

6. Streamline Balance Sheet

23 Make Upfront Investments for Growth and Achieve 4 -1 Balanced Earnings Through Higher Productivity (1) Expanding the number of the employees for growth

Employees of Rakuten Group: 4,075 Employees (Excluding Finance related Business)

1,800

1,600 246 1,400 89 194 1,200 167 203 79 89 841 1,000 180 213 206 174 234 800 82 215 234 64 214 131 170 2,244 600 203 202 193 400 841 89 633 683 246 200 418 419

218 0 2005/2Q 2005/3Q 2005/4Q 2006/1Q 2006/2Q

E-Commerce Portal and Media E-Commerce Potal and Media Travel Travel Professional Sports Professional Sports Corporate Head Office Corporate Head Office Securities Credit and Payment

* As of June 30, 2006 * Excluding Board of Directors 24 Make Upfront Investments for Growth and Achieve -1 4 Balanced Earnings Through Higher Productivity (2)

Actively make upfront investments in human resources for future growth Excluding recruitment costs, E-Commerce Business ordinary income rose 79.7% YoY

E-Commerce Business Ordinary Income 5,000 employee recruitment costs 4,517 230

7% 9. +7 2,513 2,500 (¥ millions) 4,287

2,513

0 05/2Q 06/2Q

Amortized consolidated consolidation adjustment account is deducted from SG&A expenses 25 Make Upfront Investments for Growth and Achieve -1 4 Balanced Earnings Through Higher Productivity (3)

On-going new businesses

Rakuten Auction

Rakuten Mortgage

Small amount short term insurance

Tokyo Tomin Bank Rakuten Branch

Horse Racing Mall

Others

26 Strengthen Operational Capabilities Underpinning 4 -2 Growth and Secure Scalability (1) Extend Office to Rakuten Tower (Higashi Shinagawa) Centralize Tokyo offices in Rakuten Tower and Roppongi Hills to achieve greater productivity, become a learning-oriented organization and capture synergies

(Other Facilities (planned)) Cafeteria External View Rakuten Business Institute Rakuten Technology Institute Overall View Rakuten Technology Laboratory

27 Strengthen Operational Capabilities Underpinning 4 -2 Growth and Secure Scalability (2)

Strengthen Operations Enhance training programs Strengthen training for E-Commerce and Travel consultants Implement programs designed to enhance the management skills of managers Standardize and improve processes Make business processes visible and eliminate waste Establish and strengthen internal control processes Improve support operations for merchants from new opening to store operations in the Rakuten Ichiba Business

Raise Productivity Unify basic policy concerning the construction of systems among Group Unify systems base for services in Infoseek; extend to travel and finance businesses Integrate purchasing Promote activities to raise productivity at each company Raise productivity and capture synergies by centralizing operations in the Higashi Shinagawa office

28 4 -3 Progress in Web 2.0 (1)

Promote user-generated content

Forge links with affiliates and other services

Strengthen community services

Enhance compatibility with mobile devices

29 4 -3 Progress in Web 2.0 (2)

The Rakuten Group has one of Japan’s largest accumulations of user-created content, with more than 15 million submissions

Service Function Submissions*1 Contents

Rakuten Ichiba Shopping reviews 6.41 million Product reviews

Customer feedback 1.07 million Hotel accommodation reviews

Customer 0.97 million Hotel accommodation evaluations Rakuten Travel questionnaires Travel experiences of others, sightseeing Travel information 0.02 million and other travel information GORA Voice center 0.10 million Golf course evaluations

Rakuten Business Evaluation 0.01 million B2B evaluations

Course evaluations of more than 900 Course evaluations 5.21 million universities and junior colleges nationwide

Minnano Shushoku Place to exchange information concerning (College Students’ Bulletin board 0.34 million job-hunting and employment for universities Portal Community) and junior colleges students Prospective employee Log of students from job-hunting to informal 0.06 million log appointment

Rakuten Hiroba blog Product reviews only about products Shopping List 2.32 million *2 Monthly PVs: 453.58 million bought through Rakuten Ichiba *2 Monthly UUs: 9.57 million

*1 Figures are cumulative *2 Source: NetRatings Home Panel (June 2006) 30 4 -3 Progress in Web 2.0 (3)

Link Product Reviews and Blogs I. Boost product purchases with user-generated shopping reviews II. Promote Rakuten Ichiba transactions III. Link individual blogs and affiliates IV. Create win-win relationships between users and Rakuten

Rakuten Ichiba : Review Rakuten Blog : Affiliate

31 4 -3 Progress in Web 2.0 (4)

Industry leader in attracting customer feedback on travel, exceeding level reported by travel agency JTB

Guest Questionnaires (Annual) (Thousands) 1,000 875

800

664

600

400

200

Impression of and information Comment from hotel about hotel 0 Rakuten Travel JTB (July 05 to June 06) (April 04 to March 05) Source: JTB Accommodation Report 2005 32 4 -4 Make One-Stop Shopping a Reality

Increase Number of Shops and Products in E-Commerce Business Increase in new shop openings spurred by Rakuten 10th Anniversary Plan

Strengthen Financial Services Lineup Enhance “Rakuten Money Service”site

Enhance Transportation services in Travel Business Develop domestic dynamic package tours in association with ANA Upgrade overseas dynamic package tours Domestic highway route bus online reservations

Strengthen Portal and Media Business Strengthen by spinning off Content and Media Business Company

33 Create International Business Development Capabilities 4 -5 With a View to Full-Scale Global Development

I. Rebuilt LinkShare Management Team - Reduced employee turnover rate - Maintained and improved quality of operations - Strengthened relations with Rakuten, Inc.

II. Opened UK Branch of LinkShare in July 2006 - Win corporate clients in the U.K. - Strengthen affiliate network within the U.K.

34 4 -6 Streamline Balance Sheet (1)

Finance Related Business Non-Finance Related Business （Credit & Payment Business and Securities Business） (As of June 30, 2006, Combined Information) (As of June 30, 2006, Combined Information) Cash ¥68.7 Billion Cash ¥26.3 Billion Interest Bearing Debt ¥61.1 Billion Interest Bearing Marketable Debt Securities ¥138.8 Billion Equity and ¥545.1 Billion Other Liabilities

(including realty funds:¥19.4 Billion) ¥199.4 Billion Other Assets ¥66.0 Billion Other Assets Total Assets Total Liabilities and Equity ¥1,188.9 Billion ¥260.5 Billion ¥260.5 Billion Equity and Other Liabilities Gap in Evaluation of Securities of Affiliates ¥29.2 Billion* ¥712.5 Billion

* The Gap in total assets between the sum of “Finance Related Business” and “Non-Finance Related Business”, and consolidated balance sheet is a gap in evaluation between market price and booked price of securities of affiliate companies listed on stock exchanges Total Assets Total Liabilities and Equity ¥1,257.6 Billion ¥1,257.6 Billion 35 4 -6 Streamline Balance Sheet (2)

Plan to transfer Rakuten KC’s credit business to Orient Corporation in November 2006 Streamline balance sheet and raise ROA

(Year ended March 31, 2006) Rakuten KC Loan balance approx. ¥850 billion

Credit business Total assets approx. ¥610 billion Consumer Credit card (auto loans, loan business shopping business credit, etc.)

Loan balance approx. ¥340 billion Loan balance approx. ¥500 billion

Total assets approx. ¥250 billion Business transfer Total assets approx. ¥350 billion (Separation and merger)

Rakuten KC Orient Corporation

Card Consumer loan Credit business business business

36 5 Operating Results by Segment

37 5 -1 E-Commerce Business

38 E-Commerce Business Revenues

06/2Q Growth: +76.4% YoY

13,774 14,000 12,722 13,000 12,169 12,000 11,000 10,000 9,000 8,183 7,807 8,000 6,900 6,821 7,000 6,000 5,317 4,921 5,000 4,384 % 4 4,000 . 6 Revenues (Million Yen) 3,000 7 + 2,000 1,000 0

2004 2005 2006 2004 2005 2006 2004 2005 2006 2004 2005 2006 1Q 2Q 3Q 4Q

* Change made in business segment, Entertainment Business included form 05/1Q

39 E-Commerce Business Ordinary Profit (Excluding amortization of consolidation adjustment account) 06/2Q Growth: +70.6% YoY

6,000

4,859 5,000 4,753 4,287

4,000

3,000 2,766 2,653 2,372 2,513 % .6 2,000 0 1,591 7 1,591 1,376 + Ordinary Profit (Million Yen) (Million Profit Ordinary 1,000

0 2004 2005 2006 2004 2005 2006 2004 2005 2006 2004 2005 2006 1Q 2Q 3Q 4Q

* Change made in business segment, Entertainment Business included form 05/1Q * For 05/1Q, Point program adjustment made * For 05/3Q and 06/1Q restated retroactively * Excluding amortization of consolidation adjustment account from SG&A expenses 40 Gross Merchandise Sales (E-Commerce Business) GMS Growth YoY +95.0% (including LinkShare), Domestic E-Commerce GMS +38.0%

220 Total E-Commerce GMS of LinkShare GMS 200 (Consolidated from 189.85 05/Q4) 180 5.0% S +9 154.57 160 GM erce 141.79 omm 84.41 140 E-C 45.20 120 GMS※１ 41.88 (Reference)

100 41.72 105.43 109.37 99.91 80 (GMS: Billion Yen) 79.27 80.15 71.04 70.92 .0% 60 S +38 ce GM 52.40 er 40 49.54 E-Comm 42.15 43.34 stic Dome 20 30.68

0 03/3Q 03/4Q 04/1Q 04/2Q 04/3Q 04/4Q 05/1Q 05/2Q 05/3Q 05/4Q 06/1Q 06/2Q (1$=¥113.19)(1$=¥118.07)(1$=¥117.47)(1$=¥115.24)

* GMS = Mall (Fixed Price, Super Auction, Group Buy), Flea Market, Mobile, Business Service, Golf, Books. From Sept 03 GORA included, From Q1/04 Rakuten Download included * Change made in business segment, Entertainment Business included form 05/1Q 41 Rakuten Ichiba Buyer Metrics (including mobile commerce, based on e-mail address) Average # of transactions per buyer achieves 3.0 times per quarter Unique buyers continues to grow

2004/4Q 2005/1Q 2005/2Q 2005/3Q 2005/4Q 2006/1Q 2006/2Q

Unique Buyers 2,400 2,590 2,920 2,970 3,560 3,680 3,970 (‘000)

# of Transactions 6,390 6,720 7,920 7,940 10,060 10,260 11,790 (‘000)

Average # of Transactions 2.7 2.6 2.7 2.7 2.8 2.8 3.0 per Buyer

Average ¥9,700 ¥9,300 ¥8,800 ¥8,800 ¥9,400 ¥8,800 ¥8,300 Basket Price

Quarterly GMS ¥25,862 ¥24,149 ¥23,849 ¥23,543 ¥26,512 ¥24,479 ¥24,650 Per Buyer

* Based on E-mail address * Fixed-Price and Group Buy Purchase made at Rakuten Ichiba and mobile 42 Merchants Joining vs. Merchants Leaving

“Rakuten Tenth-Anniversary GANBARE! Plan” contributes to increase new merchants

16,472 2,700 15,781 15,157 18,000 2,400 13,833 16,000 12,409 14,000 2,100 11,312 2,125 2,126 10,587 12,000 1,800 9,665 8,777 1,807 8,099 1,732 10,000 1,500 1,525 1,460 1,116 8,000 1,389 1,200 1,353 6,000 1,109 836 900 802 (# of the total merchants) 949 635 701 4,000 603 628 454 (# of joining and leaving merchants) leaving and joining of (# 600 501 431 2,000 300 0

04/1Q 04/2Q 04/3Q 04/4Q 05/1Q 05/2Q 05/3Q 05/4Q 06/1Q 06/2Q Number of the merchants Merchants Leaving Merchants Leaving

43 Tenth-Anniversary Plan for New Merchants

Limited-time special offer “Rakuten Tenth-Anniversary GANBARE! Plan” started from June 1, 2006 “You can find it! ”, as being Japan’s Largest Internet Shopping Mall Offering opportunities for broad range of merchants by substantially reducing monthly fixed fee Approx. 1,100 new applications for the plan as of the end of June

Tenth-Anniversary Standard Plan Light Plan GANBARE! Plan

Monthly Fixed Fee ¥50,000 ¥39,800 ¥19,500

Margin Fee of GMS 2%-4% 3.5%-5% 3.5%-6.5%

Contract Term 12 months 3 months 12 months

Maximum Limit of 5,000 1,000 1,000 Listed Items

44 Merchants Joining vs. Merchants Leaving

Jan/06 Feb/06 Mar/06 Apr/06 May/06 Jun/06

Merchants Joining 154 484 822 437 645 725

Light, Premium light 70 359 649 337 497 320

GANBARE -----277

Merchants Leaving 102 381 353 344 388 384

Light, Premium light 74 364 315 283 342 317

GANBARE ------14

Total # of Merchants in Mall 15,209 15,312 15,781 15,874 16,131 16,472

Light, Premium light 5,871 5,866 6,200 6,254 6,409 6,412

GANBARE -----291

45 Collaboration With LAWSON (CVS)

Joint planning by NATURAL LAWSON and Rakuten Ichiba Popular cakes and other confectionery on Rakuten Ichiba sold at 60 NATURAL LAWSON convenience stores Collaboration between offline and online shopping

8/29より発売

46 Mobile Commerce GMS

Gross Merchandise Sales of Mobile Commerce Continues to Grow

10,399

oY 9,239 10,000 Y 4% 6. 8,036 +10 8,000

5,650 6,000 5,038 4,259 3,559 4,000 2,291 2,000

0 MobileGross Merchandise Sales (Million Yen)

04/3Q 04/4Q 05/1Q 05/2Q 05/3Q 05/4Q 06/1Q 06/2Q

47 Non-Consolidated Revenue Breakdown (Excluding Portal and Media Business Results)

100% 5.5% 6.9% 6.1% 5.7% 7.6% 7.5% 7.7% 7.4% 8.5% 9.3% 12.3% 12.4% Others 1,163 1,259

80% 31.8% 33.6% 30.9% 33.7% 31.3% 34.3% 33.4% 35.8% 33.6% 37.6% 32.6% 32.5% 3,083 3,311 Advertising 60%

24.7% 29.0% 29.5% 29.3% 29.6% 29.6% 30.7% 29.8% 29.3% 40% 29.4% 31.8% 32.8% 3,003 3,345 Margin

20% 36.6% 31.9% 33.5% 31.1% 31.8% 27.5% 29.3% 27.0% 28.6% 23.7% 23.3% 22.4% 2,198 2,280 Merchant Fixed Fee 0% 03/3Q 03/4Q 04/1Q 04/2Q 04/3Q 04/4Q 05/1Q 05/2Q 05/3Q 05/4Q 06/1Q 06/2Q

= Million Yen 48 LinkShare Corporation: 2Q Results Pro forma (Excluding cost related to acquisition and retention bonus)

05/4Q 06/1Q 06/2Q

$ million $ million $ million ¥ million Revenues 14.1 12.1 12.0 1,388 Operating Expense 8.2 8.0 8.3 957 Operating Profit 5.9 4.0 3.7 430 Non-operating Profit 0.1 0.1 0.3 35 Non-operating Expense 0.0 0.0 0.0 6 Earnings Before Tax 6.0 4.2 4.0 466 Net Income 3.4 3.0 1.2 141 EBITDA 6.7 4.8 4.4 511

* Consolidated from 4Q 2005 * Pro forma, excluding costs related to acquisition and retention bonus * Exchange rate: 1$ = 115.24 Yen * Excluding LinkShare Japan

49 5 -2 Credit and Payment Business

50 Credit & Payment Business Highlights

Decrease in revenues of Rakuten KC’s credit business and operating loss due to a lower profit from securitization of loan receivables Continued substantial growth in Rakuten Credit loan balance +74% YoY More than 300 thousand Rakuten Card credit cards now issued Improved utilization rate of Rakuten Card Rating of Rakuten KC improved from BBB- to BBB Plan to transfer Rakuten KC’s credit business to Orient Corporation

51 Credit and Payment Business Revenues and Ordinary Profit (Excluding amortization of consolidation adjustment account)

25,000 23,458 22,552 21,843 20,852 20,000

15,000

10,000

4,721 5,000 2,192 776 831 1,006 409 -71 0 -132 -219 -375 Revenues & Ordinary Profit (Million Yen) (Million Profit &Revenues Ordinary -5,000 04/Oct-Dec 05/Jan-Mar 05/Apr-Jun 05/Jun-Sep 05/Oct-Dec 06/Jan-Mar 06/Apr-Jun

Revenues Ordinary Profit

* Excluding amortization of consolidation adjustment account from SG&A expenses 52 Rakuten Credit : Revenues and Operating Profit

Revenue Growth +73.3% YoY, +18.4% QoQ Remained profitable in 4Q of 2005 after profitable 3Q

1,800 1,740

1,600 1,474 1,361 1,400 1,184 1,200 1,007 1,000 831 776 800 684 611 600 520

400

200 63 74 47 50 0 -71

Revenues and Operating and Revenues Profit (Million Yen) -200 -110 -245 -228 -219 -400 -304

04/Jan-Mar 04/Apr-Jun 04/Jul-Sep 04/Oct-Dec 05/Jan-Mar 05/Apr-Jun 05/Jul-Sep 05/Oct-Dec 06/Jan-Mar 06/Apr-Jun

Revenues Operating Profit

53 Rakuten Credit Loans Balance

Loans Balance Growth +74% YoY, maintaining high growth

68,861 80 70,000 60,810 70 60,000 53,300 ) 60 46,434 50,000 41,341 50 35,351 40,000 Y 40 30,569 Yo 27,524 4% 24,441 +7 69.2 30,000 30 21,685 59.0 (Members) 51.3 45.6 20,000 20 39.7

Loans Balance (Billion Yen 32.9 25.6 28.2 10 19.8 22.2 10,000

0 0 04/1Q 04/2Q 04/3Q 04/4Q 05/1Q 05/2Q 05/3Q 05/4Q 06/1Q 06/2Q

Loans Balance Members

54 Group Synergy Effect in Rakuten Credit

Share of New Application from Other Rakuten Services Remains at 20%

Share of New Applications from Rakuten Group 30 26.8 27.3 26.5 24.9 25.3 25

23.0 20 19.8 18.6 (%) 15 楽天グループ13.7 16.6 13.1 13.2 12.7 12.3 申込シェア 2Q average 10.7 9.9 10.5 23.9％ 10 1Q average 23.6％

5 4.3

0 05/Jan 05/Feb 05/Mar 05/Apr 05/May 05/Jun 05/Jul 05/Aug 05/Sep 05/Oct 05/Nov 05/Dec 06/Jan 06/Feb 06/Mar 06/Apr 06/May 06/Jun

55 Rakuten KC Quarterly Results

Balance Sheet as of June 30, 2006 Income Statement for April to June

(Billion Yen) (Billion Yen) CURRENT ASSETS 543.4 CURRENT LIABILITIES 427.1 Revenues 19.0 Cash and cash equivalents 38.9 Accounts payable; guarantee Operating Expense 19.5 Installment accounts receivable 232.5 contracts 171.8 Installment accounts receivable, Short-term borrowings 209.1 SG&A 17.3 guarantee contracts 171.8 Bonds 1.3 Interest Expense 2.1 Credit from liquidation 96.3 Other current liabilities 44.8 Operating Profit -0.4 Other current assets 35.7 FIXED LIABILITIES 165.1 Non-Operating Profit 0.0 Allowances for bad debt -32.0 Long-term borrowing 164.1 Other current fixed liabilities 0.9 Ordinary Profit -0.4 FIXED ASSETS 60.0 TOTAL LIABILITIES 592.2 Extraordinary Profit (Loss) 4.4 Tangible fixed assets 16.8 Common capital stock 3.0 Earnings Before Tax 4.8 Land and buildings 15.1 Common capital stock surplus 16.8 Other intangible fixed assets 1.6 Retained earnings 7.8 Provision for Income Taxes -1.8 Net unrealized gain (loss) on Net Income 3.0 Intangible fixed assets 2.6 available-for-sale securities 0.0 Investment and other assets 40.6 Treasury stock -16.5 TOTAL SHAREHOLDERS' 11.1 TOTAL LIABILITIES AND TOTAL ASSETS 603.4 SHAREHOLDERS' 603.4

*Balance of securitization from installment account receivables: 194.0 Billion Yen *Balance of guarantee contract which is excluded from balance sheet by changing condition of contract with banks from this quarter: 169.4 Billion Yen *Balance of guarantee contract of tie-up loan with financial institutions which is excluded from balance sheet from this quarter: 48.2 Billion yen

56 Rakuten KC Number of Card Accounts (As of the end of the quarter)

Credit Card Money Card (Loan Card)

550 2,500 Including 310,000 2,434 Rakuten Cards 2,259 2,300 505

500 490 2,072 2,100 475 1,957 Y o 1,878 Y 459 1,900 1,827 ％ Y .6 445 Yo 29 450 439 ％

Members (Thousands) .5 + (Thousands) Members 13 1,700 +

1,500 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun 400 Jan-Mar Apr-Jun Jul-Sep Oct-Dec Jan-Mar Apr-Jun 2005 2006 2005 2006

57 Utilization of Rakuten Cards

Credit Card Utilizations for Shopping

Rakuten Card utilization rate for shopping remains at higher level than KC Card

(%) 70 62 54 56 60 48 48 50 39 40 30 20 28 28 28 28 28 27 10 0 January February March April May Jun

Rakuten Card KC Card (with the Rakuten Super Point benefit) (Non-Rakuten Super Point benefit)

* Card Utilization: The annual number of members divided by the number of active members 58 Rakuten KC Revenue Breakdown

Breakdown by Business Revenue increase in Credit Card business due to increase in gross sales of credit card shopping and loan balance of cash advance accompanied with member increasing Steady increase in Consumer Loans revenues resulting from loan balance of Money Card (loan only card) 2005 2006 (Billion Yen) Credit Card Credit Consumer Loans ( auto loan, shopping credit etc.) YoY YoY YoY ％ △ ％％ 12 +28.2 8 45.3 8 +20.0 10.0 10 9.5 8.9 8.6 6 6 7.8 5.3 5.3 8 7.3 4.8 4.7 4.5 4.5 4.0 4.1 4.3 3.8 4.0 6 4 4 2.9 4 2 2 2

0 0 0 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 1-3 4-6 7-9 10-12 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 2005 2006 * Before securitization from installment account receivables 59 Rakuten KC Quarterly Results of Loans Balance

Loans Balance Total loans balance at June 06 was 225.6 billion yen

140 125.9 121.4 114.6 120 108.9 101.1 99.7 93.8 100 89.0 90.7 84.2 79.6 80 73.5

60 (Billion Yen) 40

0 05/Mar 05/Jun 05/Sep 05/Dec 06/Mar 06/Jun Credit Card Money Card (loan only card) (Billion Yen) June 06 June 05 YoY Change Credit Card Loans Balance 125.9 101.1 +24.8 Money Card Loans Balance 99.7 79.6 +20.1 60 Rakuten KC: Gross Sales

(Billion Yen)

05/1Q 05/2Q 06/2Q 05/3Q 05/4Q 06/1Q YoY

Credit Card 27.3 29.2 30.6 36.7 39.5 52.9 +81.2% Shopping

Credit Card 29.2 28.8 29.8 29.1 30.2 28.8 +0.0% Cash Advance

Credit (auto loans, 86.3 84.0 75.7 71.9 71.3 54.1 -35.6% shopping)

Money Card 19.2 17.6 16.6 17.4 14.6 22.0 +25.0% (loan only card)

* Gross sales : amounts of new contracts with customers 61 5 -3 Travel Business

62 Travel Business Revenues

06/2Q Growth: +53.3% YoY, +6.2% QoQ

2,600 2,468 2,400 2,325 2,262 2,200 2,015 2,000 1,800 1,609 1,498 1,600 1,478 1,429 1,280 1,400 1,215 1,200 % 3 1,000 . 3 800 5

Revenues (Million Yen) + 600 400 200 0 2004 2005 2006 2004 2005 2006 2004 2005 2006 2004 2005 2006 1Q 2Q 3Q 4Q

* Pre-acquisition of Mytrip.net * Business segment changed, Entertainment Business excluded from 1Q/05

63 Travel Business Ordinary Profit (Excluding amortization of consolidation adjustment account)

06/2Q: +68.6% YoY, +4.2% QoQ

1,400

1,202 1,186 1,200 1,154 1,055

1,000

742 800 713 713 620

600 % 497 6 477 . 8 6 400 + Ordinary Profit (Million Yen) (Million Profit Ordinary

200

0 2004 2005 2006 2004 2005 2006 2004 2005 2006 2004 2005 2006 1Q 2Q 3Q 4Q

* Includes MyTrip.net before acquisition * Business segment changed, Entertainment Business excluded from 05/1Q * Excluding amortization of consolidation adjustment account from SG&A expenses 64 Travel Business Reservations

Reservations Booked Growth +17.8% YoY, Gross Bookings Growth +24.6% YoY

50 5,179 4,935 4,753 4,644 5,000 4,396 4,191 43.37 40 3,979 3,826 39.34 39.08 4,000 3,539 3,635 37.35 3,236 3,258 34.82 30 31.45 30.97 3,000 27.49 28.58 25.70 25.00 24.27 20 % 2,000

(GTV: Billion Yen) .6 +24 10 1,000 (Reservations: Nights in '000s) in Nights (Reservations:

0 0 03/3Q 03/4Q 04/1Q 04/2Q 04/3Q 04/4Q 05/1Q 05/2Q 05/3Q 05/4Q 06/1Q 06/2Q

GTV* Room Nights Booked

* Gross Transaction Volume at Time of Reservation (Before Cancellation, Tax Calculated) * Travel Business: MyTrip.net and Rakuten Travel combined * From 05/1Q, Overseas Hotels Gross Bookings, Overseas Air Travel Gross Bookings, and Overseas Hotel Reservations included * From 05/4Q, Rakuten Bus Services Inc. included * From 06/1Q, international dynamic packaging included 65 Number of Hotels and Facilities

Number of contracted hotels and facilities achieved 20,000

20,077

20,000 19,657

19,500 19,270

19,000

18,500 17,988 18,000

17,500 17,282

(Facilities) 17,000

16,500 16,168 16,000

15,500 15,244

15,000 Jan Apr Jul Oct Jan Apr Jul 2005 2006 66 Gross Booking Value via Mobile Phone

Percentage of mobile of domestic gross bookings increase to 9.0% in 2Q/06

Percentage of mobile gross bookings of total domestic gross bookings 10% 9.0% 9%

7% 6.6%

6% 1Q 2Q 3Q 4Q 1Q 2Q 2005 2006

67 Establishment of a Joint Venture With ANA

Established a joint venture with ANA on August 1, 2006 Selling dynamic packages allowing customers to freely combine flights with hotel accommodation

About the Joint Venture

Hotel accommodation, Flights Hotel accommodation, Company Name: rental cars, etc. rental cars, etc. Rakuten ANA Travel Online Co., Ltd Total investment: ¥700 million (Capital: ¥90 million) Rakuten ANA Travel Online Co., Ltd. Shareholdings: Rakuten, Inc. (50%), All Nippon Airways Co., Ltd. (40%), ANA Sales Co., Ltd. (10%) Solicitation-type Representatives: travel packages To be sent from each shareholder Address: Ark Yagi Hills, 1-8-7 Roppongi, Minato-ku, Tokyo Travel license: Sales First Class travel operator

Rakuten Group members: 33 million

68 ANA Raku Pack

Service to be sold as “ANA Raku Pack” from October 2006 Direct 24-hour online link to the ANA flight reservation system and Rakuten Travel hotel reservation system

Before “ANA Raku Pack” With “ANA Raku Pack”

Net-based reservations 24/7 Convenience Collect and compare brochures Simple search and comparison Check availability by phone or Check availability and make visiting agents reservations in real time Accessible only during tour Settlement by credit card or at company business hours convenience stores Ticketless boarding

Standard packaged tour brochures Packaged to customized products Product Limited number of products Large number of products Brochure revised several times a Real time product additions year Real time price changes Tour company-led product planning User-customizable packages

69 5 -4 Securities Business

70 Rakuten Securities Revenues (Consolidated)

Revenues increase +115.6% YoY due to increase in accounts and transaction volume, -11.5% QoQ due to slowing market and cut commission fee

12,000 11,536

10,215 9,884 10,000

8,000

6,296 6,000 4,748 4,737

4,000 3,529 3,456

Revenues (Millon Yen) (Millon Revenues 3,093 3,045

2,000

0 2004 2005 2006 2004 2005 2006 2004 2005 2006 2004 2005 2006 Jan-Mar Apr-Jun Jul-Sep Oct-Dec 71 Rakuten Securities Ordinary Profit (Consolidated) Ordinary Profit increase by +168.4% YoY, -21.4% QoQ due to market, cut commission fee, limited-time point campaign

8,000 7,160 7,000

6,000 5,630 5,575

5,000

4,000 3,362

3,000 2,154 2,097 Ordinary Profit (Million Yen) 2,000 1,547 1,279 1,224 902 1,000

0 2004 2005 2006 2004 2005 2006 2004 2005 2006 2004 2005 2006 Jan-Mar May-Jun Jul-Sep Oct-Dec

72 Rakuten Securities Industry Comparisons

Financial Overview for Apr-Jun 2006 (QoQ) (Million Yen) Rakuten E*Trade Matsui kabu.com MBH Securities

Revenues 10,215 -11.5% 15,691 -20.0% 11,820 -35.2% 5,887 -19.1% 9,335 -22.2%

(Net 1,830 -2.8% 3,281 +0.5% 3,597 -4.8% 1,121 +10.0% 1,621 -2.7% Interest) Net 9,691 -12.0% 14,886 -20.1% 11,120 -36.5% 5,594 -18.1% 8,904 -23.8% Revenues

SG&A 5,295 +9.9% 7,717 -4.6% 4,666 -17.8% 2,123 -11.5% 3,730 +1.9%

Operating 4,396 -29.0% 7,168 -31.9% 6,454 -45.4% 3,471 -21.6% 5,174 -35.5% Profit Ordinary 5,630 -21.4% 7,391 -29.9% 6,507 -45.1% 3,491 -19.6% 5,229 -34.8% Profit

Net Profit 2,876 -24.6% 4,182 -33.1% 3,804 -41.3% 2,019 -59.9% 2,944 -34.2%

* Source: Individual company financial reports on a consolidated basis (excluding kabu.com) * Comparison of consolidated results 73 Rakuten Securities Industry Comparisons

Financial Overview for Apr-Jun 2006 (YoY)

(Million Yen) Rakuten E*Trade Matsui kabu.com MBH Securities

Revenues 10,215 +115.6% 15,691 +53.0% 11,820 +21.9% 5,887 +66.2% 9,335 +51.8%

(Net 1,830 +127.9% 3,281 +108.8% 3,597 +50.8% 1,121 +135.0% 1,621 +75.8% Interest) Net 9,691 +121.5% 14,886 +55.7% 11,120 +22.6% 5,594 +70.3% 8,904 +54.2% Revenues

SG&A 5,295 +108.2% 7,717 +44.8% 4,666 +36.2% 2,123 +54.9% 3,730 +34.1%

Operating 4,396 +140.1% 7,168 +69.5% 6,454 +14.3% 3,471 +81.4% 5,174 +72.9% Profit Ordinary 5,630 +168.4% 7,391 +68.7% 6,507 +15.1% 3,491 +81.2% 5,229 +74.4% Profit

Net Profit 2,876 +194.3% 4,182 +73.7% 3,804 +18.0% 2,019 +86.3% 2,944 +105.4%

* Source: Individual company financial reports on a consolidated basis (excluding kabu.com)

* Comparison of consolidated results 74 Rakuten Securities Number of General Accounts YoY +84.2%

1,259,163 # of General Accounts as of end of Jun 2005 # of General Accounts as of end of Jun 2006 1,200,000 No.1 Growth 1,000,000 YoY YoY YoY +49.2% 800,000 +97.7% YoY 683,696 +87.2% 675,892 592,209 +91.5% 588,267 600,000 502,327 453,140

400,000 299,611 314,216 262,291

200,000

0 E*Trade Rakuten Kabu.com Matsui MBH Securities

* Source: based on information on companies’ websites 75 Rakuten Securities Daily Trading Volume of Japanese Equity Daily Trading Volume YoY 400,000 +107.8% 357,545 Apr-Jun 2005 Apr-Jun 2006

300,000 No.1 Growth YoY +110.2% 200,000 YoY 172,026 172,752 +59.3% YoY (Million Yen) YoY 123,999 +54.8% +109.7% 100,000 89,010 82,173 78,288 77,836 57,502 37,340

0 E*Trade Rakuten Kabu.com Matsui MBH Securities

* Source: based on information on companies’ websites 76 Rakuten Securities Transactions of Japanese Equity

12,000,000 11,091,634 Apr-Jun 2005 YoY YoY Apr-Jun 2006

10,000,000 +140.5% +71.7% 8,899,000

8,000,000 No.1 Growth YoY +54.%

5,845,526 6,000,000 YoY 5,182,719 4,612,157 +73.0%

4,000,000 3,759,264 3,775,839

2,173,607 2,000,000

0 Rakuten Securities Kabu.com Matsui MBH

* Source: based on information on companies’ websites 77 Rakuten Securities Begins Considering Night Trading

Questionnaire Concerning Night Trading by Rakuten Securities Users expressing an interest in night trading: 69.6% Most users want to trade between 20:00 and midnight.

Q. How interested would you be in a night trading service? Q: If a night trading service was available, when would you want to use it? (multiple answers are possible)

Absolutely no 15:00 to 15:59 interest 13.1% 35.1% Not that interested 16:00 to 16:59 39.0% 13.1% 17:00 to 17:59 34.2%

18:00 to 18:59 22.1% Very interested 32.6% 19:00 to 19:59 9.1% Don’t know 14.7% 20:00 to 20:59 4.6% 21:00 to 21:59 3.5%

22:00 to 22:59 2.6% Interested 37.0% 23:00 to midnight 2.8%

0% 10% 20% 30% 40% 50%

* Results of questionnaire given to people opening accounts between April and June 2006 78 5 -5 Portal and Media Business

79 Portal and Media Business Highlights

Revenues up 47.5% YoY due to strong performance in advertising agency business

Active recruitment of salespeople, researchers and engineers to support growth

Higher expenses in Internet television and publishing businesses

Separated part of the content division from the Portal and Media Business Company to establish Content and Media Business Company with the aim of strengthening content operations

Conducted successful project to update the Infoseek media business homepage; page views rose 23% YoY

Continued to capture synergies between the community and E-Commerce Businesses; rolled out new functions with photos, SNS and affiliates, in addition to blogs

80 Portal and Media Business Organization Change

Ynot (online greeting card service) transferred to E-Commerce Business New business company established, comprised of Internet-TV, Publishing, Rakuten TV and pay-per-view video streaming businesses Enhancing content business based on ROI management

Portal & Media Business Company (old)

E-Commerce Business Portal & Media Business Contents & Media Business Company (2nd EC Division) Company Company

Gift Service Media Internet TV “Nuigurumi Card” “Infoseek” “Rakuten Eagles TV” “Minna-No Shusyoku” Internet-based Greeting Card Service Publishing “Rakuten Greeting” Tool “STAR Soccer” “Rakuten Research” CS Channel “Targeting Mail” “Rakuten TV Community Broadband Content “Rakuten Blog/Photo/Links” “Showtime” Advertising Agency “Target”

81 Portal & Media Business Revenues

06/2Q Growth: +47.5% YoY

3,500 3,255 3,184 3,000 2,888 2,687 ) 2,500 2,158

% 2,000 5 1,703 . 7 1,583 4 1,489 1,500 1,335 1,319 +

Revenues (MillionRevenues Yen 1,000

500

0 2004 2005 2006 2004 2005 2006 2004 2005 2006 2004 2005 2006 1Q 2Q 3Q 4Q

* Excluding Ynot (online greeting card) Business from 2Q/06 82 Portal & Media Business Ordinary Profit (Excluding Amortization of consolidation adjustment account)

700

576 600 547 519 500 440 426 400 392 324 300 266 185 200

100 Ordinary Profit (Million Yen) (Million Profit Ordinary 0

-100 -120 -200 2004 2005 2006 2004 2005 2006 2004 2005 2006 2004 2005 2006 1Q 2Q 3Q 4Q

* For 05/3Q, restated retroactively * Excluding amortization of consolidation adjustment account from SG&A expenses * Excluding Ynot (online greeting card) Business from 2Q/06 83 PVs of Infoseek Major Services

PVs of Infoseek Money increases sharply

8 Infoseek Top Page 7

5 Infoseek News

4 Infoseek Money

PV (Millon Yen) PV (Millon 3

2Q2004 3Q 4Q 1Q 2Q2005 3Q 4Q 1Q2006 2Q

84 5 -6 Professional Sports Business

85 Professional Sports 2Q Overview

Increased revenues from sponsor sales were brisk in second season, however, higher operating cost including depreciation led to overall operating loss

(millions of yen)

Non-Consolidated 2005 1H 2006 1H YoY change Revenue 3,085 3,160 75 Operating Cost 3,047 3,966 919

Depreciation 118 484 366 (included in operaing cost) Operating Profit (loss) 38 -806 -844

Depreciation costs for tangible assets and contracts for players

Consolidate 2005 1H 2006 1H YoY change Revenue 3,594 3,496 -98 Operating Cost 3,424 4,291 867 Operating Profit (loss) 170 -795 -965

86 Professional Sports Revenue Breakdown (non-consolidated)

Revenues up by 75 million yen (YoY) due to steady increase revenues from sponsors and tickets despite decline in broadcasting rights

(millions of yen) Breakdown of 2005 1H 2006 1H YoY change Non-Consolidated Revenues Advertisement Sponsor 816 1,066 250 Broadcasting Rights 589 403 -186 Tickes Sales 1,175 1,214 39 Stadium 161 228 67 Fan Club 101 65 -36 Team Trademark Rights 154 81 -73 Others 89 103 14 Total 3,085 3,160 75

87 Appendices

88 Rakuten Ichiba Business Results

(Million Yen) 2005 2006

05/3Q 05/4Q 06/1Q 06/2Q

Revenues 6,837 8,918 9,441 10,187

Operating 4,236 4,569 4,835 6,126 Expenses

Operating 2,600 4,349 4,605 4,061 Profit

Operating 38.0% 48.8% 48.8% 39.9% Margin

* Rakuten Inc, excludes Portal & Media Business Company

89 2006/2Q Consolidated Financial Results

(Billion Yen) Operating Operating Revenues YoY QoQ YoY QoQ Profit Profit Margin E-Commerce +76.4% +8.3% +48.0% -13.6% 26.8% Business 13.77 3.69 Credit and Payment +1,971.8% -7.5% - - -2.7% Business 20.85 -0.55

Portal and Media +47.5% -2.2% - - -4.8% Business 3.18 -0.15

Travel Business 2.46 +53.3% +6.2% 0.98 +63.9% -2.5% 40.1%

Securities Business 11.86 +135.8% -0.7% 4.64 +143.5% -25.3% 39.2%

Professional Sports -16.8% +297.0% -72.5% - 9.7% Business 2.79 0.26

Internal Elimination -1.79 +171.6% - -0.49 - - -

Consolidated 53.14 +161.7% +1.9% 8.39 +34.4% -23.0% 15.8%

* Including amortization of consolidation adjustment account recorded as SG&A 90 Breakdown of Amortization of Consolidation Adjustment Account

Included in SG&A (Million Yen)

05/3Q 05/4Q 06/1Q 06/2Q Companies

E-Commerce - 528 527 527 LinkShare Business Credit & Payment 164 171 168 168 Rakuten KC Business Portal & Media Ynot 10 12 16 16 Business Rakuten Research

Travel Business -07 7 Rakuten Bus Service

Rakuten Realty Management Securities Business 111 1 Rakuten Strategic Partners Professional Sports --- - Business

Consolidated 176 714 722 721

91 Rakuten Group Reach

Property Mar. 2006 Property Jun. 2006 Yahoo! 86.3 Yahoo! 86.4 Rakuten 60.1 Rakuten 58.3 GMO 52.9 GMO 51.6 Nifty 48.6 Nifty 48.4 MSN 47.4 MSN 44.7 NEC 42.9 NEC 44.0 Amazon 40.2 Microsoft 41.4

出典：NetRatingsホームパネル 92 Capital Expenditures

(Billion Yen) 2005 2006 2006 Year 1Q 2Q Non-consolidated Hardware 1.95 0.44 0.35

Software 1.71 0.54 1.15

Total 3.67 0.98 1.51

Consolidated Hardware 3.52 1.19 0.54

Software 3.12 0.94 1.84

Total 6.64 2.13 2.38

* Operating Base * Excluding Professional Sports and realty funds 93 PVs of E-Commerce Business

140 133 125 120 107

100 96 94

78 80

60 60 45 40 EC Business PV(millions PV/day)

0 04/3Q 04/4Q 05/1Q 05/2Q 05/3Q 05/4Q 06/1Q 06/2Q

94 Sales Margin Breakdown (Non-consolidated)

3,500

3,000

RMS ※ 2,500 Standard

2,412.0 2,000 2,216.0

(Million Yen) 1,720.8

1,500 1,225.5 1,220.2 1,101.7 1,081.8 1,000 727.4 764.3 613.1 644.2 Others 397.9 500 903.3 933.4 783.7 787.1 623.0 731.1 448.9 500.0 530.8 605.0 323.5 443.5 - 03/3Q 03/4Q 04/1Q 04/2Q 04/3Q 04/4Q 05/1Q 05/2Q 05/3Q 05/4Q 06/1Q 06/2Q

* From February 2005, charge to GMS below than 1 million sales per merchant started only for newly opened merchants since February 2005 * From January 2006, charge to GMS below then 1million sales per merchant started for all merchants 95 Group Advertising Revenues

06/2Q Group Advertising Revenues 4.6Billion Yen, Growth +33.8% YoY

E-Commerce Group Ad Revenues Portal & Others Ad Revenues*3 # of Major Advertisers 6,000 3,500 3,027 2,891 2,839 5,000 3,000 2,438 2,516 2,500 4,000 2,019 2,020 1,355 1,354 1,275 1,652 1,632 2,000 1,486 3,000 1,386 1,173 1,325 1,195 1,500 914 965 2,000

780 (# of Advertisers) 806 3,171 3,283 1,000 679 820 2,960 655 2,293 2,173 (Ad Million Revenues: Yen) 1,000 1,855 1,894 500 1,387 1,303 799 1,124 996 0 0 03/3Q 03/4Q 04/1Q 04/2Q 04/3Q 04/4Q 05/1Q 05/2Q 05/3Q 05/4Q 06/1Q 06/2Q E-Commerce Group 799 1,124 996 1,387 1,303 1,855 1,894 2,293 2,173 3,171 2,960 3,283 Portal & Others*3 655 679 820 780 806 914 965 1,173 1,325 1,354 1,275 1,355

Revenues Group Total 1,454 1,822 1,816 2,167 2,110 2,770 2,859 3,467 3,498 4,525 4,236 4,638 E-Commerce Group 792 1,083 1,001 1,246 1,213 1,569 1,593 1,992 1,993 2,355 2,264 2,482 Portal & Others*3 403 403 385 406 419 450 427 446 523 536 575 545

Group Total 1,195 1,486 1,386 1,652 1,632 2,019 2,020 2,438 2,516 2,891 2,839 3,027 # of Advertisers # of

*1 Excludes internal group sales *2 Monthly average within each quarter *3 The sum of Revenues from Infoseek and Ynot 96 Group Membership

MyTrip.net※5 2.90M Signature Japan ※3 3.73M

COOL 0.44M As of Jun,30,2006 Rakuten Total:33.76M※1 Members ※2 Ynot 22.37M 4.30M

*1 Figures include duplication among services *2 Includes members from co-branded services *3 Includes automatic registration to service *4 GORA members and Rakuten members merge *5 MyTrip.net excludes members converted to Rakuten ID *6 Ynot excluded members converted to Rakuten ID *7 Infoseek members and Rakuten members merge 97 Group Employees

Rakuten Group: 4,075 Rakuten, Inc.: 1,054

246 55 89 68 (+18) 218 841 (-3) 112 (+37) 203 3 EC事業 (+1) 234 683 18 (-4) 611 10 (+188) (-16)

160 (+36) 17 (-18) 2,244 E-Commerce Credit and Payment Sales Bookd, MD Infoseek Portal and Media Travel Greeting Golf Entertainment Securities Professional Sports Development Administration Others Corporate Head Office

* As of June 30, 2006 * Excluding Board of Directors * Figures in ( ) represent change in numbers since March 31, 2006

98 99