Preparing for Sustainable Growth

Rakuten’s Philosophy Contribute to society by creating value through innovation and entrepreneurship

Our corporate mission since our founding has been based on the empowerment of individuals and society through innovation and entrepreneurship. We contribute to innovation and the enrichment of society by helping as many people as possible to excel, while providing services that deliver high levels of satisfaction for both users and partner enterprises. Through these activities, we aim to maximize the corporate value and shareholder value of the Group and continue to be a Global Innovation Company.

Social Contribution Activities (CSR Activities) Through social contribution activities, Group addresses social issues related to education, the environment, local communities, and disaster relief and humanitarian aid hand in hand with business partners, customers, government, NPOs, and other diverse stakeholders in the Rakuten network. >>> https://global.rakuten.com/corp/sustainability/

Diversity initiatives Rakuten Group respects the individuality of employees and strives to create innovation that empowers society.

FY2013 Diversity Gold Level in the Management 2016 work with Selection 100 winner Pride PRIDE Index

Initiatives in 2016 ● Release of an internal diversity and inclusion homepage on the company Employees from all over the world intranet to start fostering awareness within the Group 2016 72 countries ● Revision of the defi nition of “spouse” in internal regulations to include same-sex partners and launch of services for LGBT users through Rakuten Card, Rakuten Life Insurance, Rakuten Edy, and other Rakuten services Women in management positions

● Preparation of an in-house childcare center and nursing room to assist 2015 2016 employees in balancing work and parenting—with more than 95% of 18% 21% employees returning to work from maternity leave and childcare leave >>> https://global.rakuten.com/corp/about/diversity/

19 Preparing for Sustainable Growth

Rakuten IT School The Rakuten IT School program, now in its tenth year, accepted a total of 3,441 students from 67 senior high schools nationwide in 2016. The students attended lectures on e-commerce given by employees of Rakuten and local Rakuten Ichiba and Rakuten Travel merchants and hoteliers.

School Participation 67

57

25 17

6 6 6 3 4

’08 ’09 ’10 ’11 ’12 ’13’14 ’15 ’16 >>> http://global.rakuten.com/corp/sustainability/it-school/

Rakuten’s Forest The mascot of the Rakuten Golden Eagles’ character “Clutch” is modeled on the golden eagle, a bird of prey species today on the verge of extinction. One of the reasons is that the habitat of the golden eagle has decreased due to the change of lifestyle and interaction between humans and the forest. In 2014, Rakuten and numerous partners started the “Rakuten Forest” initiative to recover the biological habitat of the golden eagle. Today, 504.3 ha of forest (equivalent to 108 Tokyo Domes) are properly managed under this initiative. March 2017 marked the end of our 2-year commitment to contribute to reforestration of Indonesian forests on Kalimantan island. All of the trees that we planted are in good, healthy condition and ready to grow naturally in the forest.

©Rakuten Eagles >>> http://global.rakuten.com/corp/sustainability/forest/

Rakuten Selected for Global Sustainable Index Selection for the fi rst time as an index component for the 2016 Dow Jones Sustainability Asia/Pacifi c Index.

20 Brand Enhancement We continually engage in activities to strengthen and extend our brand, including ownership and partnerships with professional sports teams.

Rakuten to become FC Barcelona’s Main Global Partner Rakuten has agreed to a four-year partnership with one of the world’s most esteemed soccer clubs, FC Barcelona. The agreement currently positions Rakuten as FC Barcelona’s Main Global Partner and its fi rst-ever Global Innovation and Entertainment Partner from the 2017–18 through the 2020– 21 seasons, with the Rakuten logo appearing on match-day jerseys. This move brings together the collective power of our brands, like , Wuaki, Ebates, Kobo and , to build an innovation framework that will deliver unique services to fans, members and players. Viber will also serve as FC Barcelona’s Offi cial Communications Channel.

President of FC Barcelona, Josep Maria Bartomeu and H. Mikitani, Chairman and CEO, Rakuten, Inc.

>>> https://rakuten.today/mickeysvoice/rakuten-fc-barcelona-global-partner.html

2016 2015 Site Name Score Most Powerful Web Brand in Japan 13Rakuten Ichiba 121.7 Rakuten Ichiba was selected as Japan’s leading web brand in 21Yahoo Japan 120.1 Nikkei BP Consulting’s Web Brand Survey in 2016—Autumn/ 32Amazon.co.jp 110.6 Winter. 44Google 102.2

21 Board of Directors, Executive Vice Presidents, Managing Executive Offi cers and Company Auditors

(As of August 1, 2017)

Masayuki Hosaka Yoshihisa Yamada Representative Director and Executive Vice President Vice Chairman

Hiroshi Mikitani Representative Director, President, Chairman and CEO

Yasufumi Hirai Kentaro Hyakuno Makoto Arima Executive Vice President Executive Vice President Executive Vice President

Kazunori Takeda Yuji Kusunoki Hiroyuki Nagai Hiroshi Takasawa Naho Kono Managing Executive Offi cer Managing Executive Offi cer Managing Executive Offi cer Managing Executive Offi cer Managing Executive Offi cer

Kenji Hirose Akio Sugihara Koji Ando Terje Marthinussen Masatada Kobayashi Managing Executive Offi cer Managing Executive Offi cer Managing Executive Offi cer Managing Executive Offi cer Managing Executive Offi cer

Charles B. Baxter Takahide Uchida Yoshiaki Senoo Takeo Hirata Katsuyuki Yamaguchi Director Company Auditor (Full-time)*2 Company Auditor *2 Company Auditor *1,*2 Company Auditor *2

*1: Independent Director specifi ed by the regulations of Tokyo Stock Exchange, Inc. *2: Outside auditor stipulated under Corporate Law of Japan.

22 Outside Directors

(As of April 1, 2017)

Year Appointed Positions Held Area of Expertise

2010 Former CEO and Entertainment and Technology: Mr. Kutaragi Honorary Chairman of has provided Rakuten with management- Sony Computer related suggestions and insights based on his Entertainment Inc.* specialized knowledge of the entertainment business and technology, as well as his wide- Ken Kutaragi ranging corporate management experience. Director *1,*2 * Currently Sony Interactive Entertainment Inc. He has served as a director for seven years.

2016 Founder and CEO of Internet Technology: Mr. James was Domo, Inc. appointed for his management insight and suggestions based on specialized knowledge of internet services and extensive experience guiding Internet service business in North Joshua G. James America. He has served as an outside director Director*1 for one year.

2016 Board Member of Japan Management Consulting: Mr. Mitachi was Association for the World Food appointed in anticipation of his advice and Programme, Vice Chairman of comments based on expertise as a Japan Association of Corporate management consultant and for his extensive Executives and Senior Partner & corporate management experience. He has Takashi Mitachi Managing Director of The served as a director for one year. Director *1,*2 Boston Consulting Group

2012 Dean of Faculty of Internet Technology: Mr. Murai has given Environment and Rakuten management-related Information Studies of recommendations based on his knowledge Keio University and experience as an academic expert on internet technology. He has served as a Jun Murai director for fi ve years. Director *1,*2

2015 Senior Associate Dean Business Strategy: Ms. Moon has provided of Strategy and advice and opinions on the business Innovation and Donald operations of Rakuten from her viewpoint as K. David Professor of an academic expert on business administration. She has served as a director Youngme Moon for two years. Director *1,*2

*1: Outside director stipulated under Corporate Law of Japan *2: Independent director specifi ed by the regulations of Tokyo Stock Exchange, Inc.

23 Corporate Information Additional information

(As of December 31, 2016) from consolidated Financial Statements

Corporate Overview Corporate History

Name Rakuten, Inc. See Consolidated Financial Statements P31

Rakuten Crimson House, Head Offi ce Location 1-14-1 Tamagawa, Setagaya-ku, Tokyo, 158-0094, Japan TEL. +81-50-5581-6910

Chairman, President and CEO Representative Hiroshi Mikitani Summary of Results Founded Feb. 7, 1997

Rakuten Ichiba Service See Consolidated Financial Statements P37 May 1, 1997 Launched

IPO Apr. 19, 2000

Capital 204,562 million yen Business Risk and Non-consolidated: 5,549 Employees Consolidated: 14,134 Other Risk Factors

See Consolidated Financial Statements P43 Stock Information

Company Name Rakuten, Inc. Analysis of Consolidated Stock Code 4755 (Tokyo Stock Exchange 1st Section) Business Results, Financial Fiscal Year January 1 to December 31 Position and Cash Flows

Annual General March Shareholders' Meeting See Consolidated Financial Statements P56

Shareholder December 31 Record Date

Number of Shares Constituting One 100 Shares Trading Unit Corporate Governance Administrator of Sumitomo Mitsui Trust Bank, Limited Shareholder Registry See Consolidated Financial Statements P140

Consolidated Origins of the Name Rakuten Financial Statements

Rakuten Ichiba is named after Rakuichi-Rakuza, the fi rst free and open marketplace in Japan, opened in the 16th century. See Consolidated Financial Statements P152 When used as a verb, raku is written with a Chinese character meaning to enjoy oneself ( ). The same character is used in the world “Rakuten,” which means “optimism” or “positive spirit.” The name Rakuten Ichiba literally means a “market of positive spirit,” where shopping is entertainment. These words symbolize the driven, forward-looking nature of our business. That is why we named our company Rakuten, Inc.

Cautionary Statement In this report, unless indicated otherwise, references to “Rakuten,” “Rakuten Group,” “we,” ”our,” and “us” are Major Subsidiaries to Rakuten, Inc. and its consolidated subsidiaries and consolidated affi liates. Statements regarding current plans, strategies, beliefs and other statements that are not historical facts of the Rakuten Group are forward-looking statements. See Consolidated Financial Statements P260 Such forward-looking statements are based on management’s assumptions and beliefs in light of information currently available, and it should be noted that risks and unforeseen factors could cause actual results to diff er signifi cantly from those discussed in the report. We do not intend to update these forward- looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws. “Rakuten,” and are registered trademarks of Rakuten, Inc. in Japan.

24