Rakuten Group Introduction June 2021 Rakuten Group, Inc. Table of Contents 1. Rakuten Group Overview 2. Snapshot of Key Businesses 3. Appendix -Who we are -Domestic EC -Rakuten history -Mission -FinTech -Consolidated financial results -Track record Rakuten Card -Strengths Rakuten Bank -Opportunity Rakuten Securities -KPIs & FY2020 Highlights Payments Business -ESG Insurance Services -Rakuten Capital -Ad Business -Overseas Businesses -Mobile Business -Founder’s commitment 2 Rakuten Group Overview 3 Global Innovation Leader Japan’s Leading Tech Company Transforming Global Telecom 4 Online e-Learning Content Fintech Seizing Digital Advertising Acceleration Data e-Commerce 5G Communications 5 Rakuten’s Unique Ecosystem: More than 70 Innovative Businesses Unified under One Brand Japan’s No.1 Internet Service includes: Biggest eCommerce platform in Japan most diverse range of products, entertainment and sports Most Comprehensive FinTech platform No.1 online bank fastest growing securities business fastest growing cashless businesses including Rakuten Credit Card online insurance Top Tier online Travel business in Japan top Hotel booking business Dominant Online Advertising business on EC platforms in Japan accounting for approx. 55% of EC platforms ad market (FY2020) World’s First Fully Virtualized Mobile Service enabled by technology that halves CAPEX and OPEX 100mn + members connect to all services via a single ID 6 Mission: Create Value through Innovation and Entrepreneurship to Contribute to Society 5G Mobile Telemedicine Service Our Future Sustainable Innovation: Drone Smart Today Delivery Cities Enable Industry 20,000+ Employees, 50,000+ Merchants Empower Society Digital Smart Innovating everyday to Content Stadiums 1997 empower merchants and Our Beginning consumers Enrich Individual Experiences Launched with just six employees, one server, Pioneering virtual mobile 13 merchants technology to empower Pioneered Internet EC consumers w/ unlimited data to empower small that is affordable merchants 7 Total Global GTV*1*2 +18.0％ YoY (JPY tn) *1 Global Gross Transaction Value = Domestic E-Commerce GMS + Credit Card GTV + Rakuten Edy GTV + Rakuten Pay GTV+ Rakuten Point Card GTV + Overseas E-Commerce GMS + Rakuten Rewards (Ebates) GMS + Digital Contents GTV + Rakuten Advertising (Rakuten Marketing) GTV *2 Includes intercompany transactions for settlement and affiliate services 8 Track Record: Growing New Businesses to Become No.1 through Fast Customer Acquisition # of Credit Card holders (mm) # of online bank accounts (mm) # of online securities accounts (mm) 21.6 9.9 5.0 3.8x 2.7x 5.0x 3.7 5.7 1.0 Dec/10 Dec/20 Dec/10 Dec/20 Dec/10 Dec/20 *No.1 in the number of card holders acquisition *No.1 in the number of new account openings 9 Track Record: Growth Outpacing Traditional Industries Industries Traditional Outpacing Growth Record: Track *Ministry *Ministry of Economy, Trade and Industry, Commercial sales value by type of business 2000 2000 Domestic EC GMS vs Retail Sales Value Sales Retail vs EC GMS Domestic 2001 2001 2002 2002 2003 2003 2004 2004 Retail Industry Sales Value* Sales Industry Retail 2005 2005 2006 EC GMS Domestic *Ministry *Ministry of Economy, Trade and Industry, Statistical survey on dynamics 2006 of specified service industries: Credit Card 2007 2007 2008 2008 2009 2009 2005 2005 2010 2010 2011 2006 2006 2011 2012 2012 2007 2007 2013 2013 Credit Card Shopping GMS Card Credit 2008 2008 2014 2014 Credit 2015 2009 2009 2015 2016 Rakuten Card Rakuten 2016 2010 2010 2017 2017 2011 industry* Card 2011 2018 2018 2019 2019 2012 2012 2020 2020 2013 2013 5Y 5Y CAGR 5Y CAGR - +12% 2014 2014 0.8% 2015 2015 2016 2016 2017 2017 2018 2018 *Japan Tourism Agency, Travel Agency Transaction 2019 2005 2019 2005 2020 2006 2006 2020 2007 2007 2008 5Y 5Y CAGR 5Y CAGR 2008 +23% +7% Travel 2009 2009 Travel Rakuten 2010 2010 2011 2011 Travel GMS Travel 2012 Industry* 2012 2013 2013 2014 2014 *Japanese Bankers Association, National bank deposit 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 5Y 5Y CAGR 5Y 5Y CAGR - Rakuten Bank Rakuten - 30% 2% All Bank Deposit Banks* * *Ad expenditure of news paper,magazine, radio, TV Dentsu 2016 2016 : 2020 Advertising Expenditures in Japan Traditional Media Ad Ad Media Traditional Rakuten Ad Revenue Ad Rakuten 2017 Advertising Business Advertising 2017 Expenditure* 2018 2018 +28% 5Y 5Y CAGR 5Y 5Y CAGR +5% 2019 2019 2020 2020 4Y 4Y CAGR 4Y CAGR +13% - 6% 10 World’s first fully virtualized mobile network Reducing CAPEX and OPEX with groundbreaking technology 11 Strengths: Unique and Unmatched A Strong A Unique High Quality Most Popular* Global Ecosystem Data + AI Point Program Workforce Diversified and From 100M Attracts and Top engineers Resilient in Rakuten Members retains costumers 70 nationalities challenging times Rakuten’s Value can be measured by Membership Value = LTV – CAC LTV: Life Time Value of a customer, enhanced by having multiple businesses in one eco-system CAC: Customer Acquisition Cost, lowered by a cross-business strategy *My voice com, Survey on points, July 2020 12 Strengths: A Global Workforce Enabled by “Englishnization” Rakuten is a rare Japanese company that made English the official company language in all offices across the world ‘Englishnization’ makes it possible to acquire and retain global talent including the world’s top engineers Employee nationality ratio* Non-Japanese Japanese nationality nationality 23% 77% Number of employee / nationalities* 20,000+ Over 70 * As of December 31, 2019 13 Strengths: A Unique Ecosystem Global Membership 1.5bn One Brand A single "Rakuten" brand for domestic and overseas services improves awareness and image of each service One ID - Membership More than 100 million users in Japan can use multiple services in the ecosystem with a single ID Rich data Enormous purchasing data of more than 100 million users connected to demographics, such as age and gender, and consumer interests. 14 Strengths: A Successful Cross-Business Strategy Synergies between businesses such as Rakuten Ichiba and Rakuten Card lead to expansion of overall Ecosystem Ichiba Domestic EC GMS Shopping Transaction 14,000 5,000 4,500 Synergies 12,000 4,000 to expand 10,000 3,500 Ecosystem 3,000 8,000 2,500 Cross-use Ratio 6,000 2,000 1,500 73.0% 4,000 （As of Dec 2020） 1,000 2,000 500 2 out of 3 members use 2 or more services 0 0 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 15 Strengths: Japan’s Most Popular Point Program (1 point = 1 yen) Attracts and Retains Customers Earn 1x points Earn 3x points Earn 4x points Earn 5x points Use Use Use Join Rakuten Rakuten Rakuten Rakuten ・・・ Card Card Card Mobile 15x Link Card Link Card Shop at Shop at Shop at Shop at to Rakuen to Rakuen Ichiba Ichiba Ichiba Ichiba Bank Bank Customers Earn ‘Rakuten Points’, which is equivalent to cash The more services a customer uses, the more points they earn, incentivizing cross-usage of Rakuten businesses Customers can spend Points in over 5mn on & offline locations including supermarkets No.1 in customer satisfaction survey 90% of points issued, are used by customers, reflecting popularity of program Point I can earn most easily Point overall customer satisfaction Point I want to receive *My voice com, Survey on points, July 2020 16 Strengths: High Quality Data from 100M+ Rakuten IDs 100M+ Rakuten IDs High Quality ID Purchase Data Online and Offline Accurate Demographic Purchasing Data / Membership Attributes Geo Data in all areas 17 Strengths: A powerful AI Driven Marketing Strategy AI agents “Rakuten AIris” analyzes 920 elements from 100m+ Rakuten members “Pitari” delivers the right content, to the right person, at the right time User High Low Matching Rate ●●●●●●● ●●●●●●● Approaching higher Matching Rate user Potential users Machine Learning 920 Analysis elements Demography Interested in health products Search history Interested in A Visit history Games Often go golf Purchase history Often go abroad Have a car Point-use tendency Have pets Model etc. Similarity Score 18 Opportunities: Digital Acceleration in the New Normal Online e-Learning Content FinTech Advertising Data e-Commerce 5G Communications Sustainable Innovation 19 Opportunities: Lead Position to Seize Expanding Digital Market Internet Service Fintech Mobile Japan’s EC penetration expected to double*1 Japan’s Cashless ratio expected to triple*2 190mm Mobile phone subs in Japan 2016 2025 20XX (Target) (Target) Aiming No.1 Telco in Japan JPY 60 tn 0.8% subs share at first year of commercial service launch 20% 40% 80% 190 mm (2017) Mobile phone subs Rakuten growth faster than overall market*1 December 2020 <BtoC EC Market in Japan> +7.8％ YoY Unit: JPY tn Largest payment offering Most affordable Service ％ Up to 1GB : JPY 0 Unlimited : JPY 2,980 *1 The Ministry of Economy, Trade and Industry (METI), “FY2018 Survey of Infrastructure Development Status for Data-driven Society in Japan (E-Commerce Market Survey)” *2 The Ministry of Economy, Trade and Industry (METI), “Cashless Vision” *3 Calculated by Rakuten based on The Ministry of Internal Affairs and Communications, “Information and Communication in Japan WHITE PAPER 2019” *4 The Ministry of Internal Affairs and Communications, “Survey on Domestic and Foreign Telecommunication Industry Data Plans” 20 Opportunities: Online to Offline Expansion Rakuten Everywhere Capturing the Consumer’s JPY 352 Trillion* Wallet Share (JPY tn) * Internal estimation based