FY2020 Fourth Quarter and Full Year Consolidated Financial Results Appendix February 12, 2021 Rakuten, Inc. Consolidated Results 1 FY2020 Revenue and Operating Income*1 (JPY bn) FY2019 FY2020 YoY Core Business*2 Revenue 1,010.8 1,131.7 +12.0% Operating Income 134.2 156.5 +16.6% Non-recurring / Investments*3 Revenue 122.6 129.7 +5.9% Operating Income 93.4 23.2 -75.1% Future Growth Investments*4 Revenue 265.3 362.0 +36.4% Operating Income -127.7 -285.3 -157.6 Adjustments Revenue -134.8 -167.9 -33.2 Operating Income -4.9 2.9 +7.8 Consolidated Revenue 1,263.9 1,455.5 +15.2% Non-GAAP Operating Income 95.1 -102.7 -197.8 IFRS Operating Income 72.7 -93.8 -166.6 *1 From Q1/20, some figures have been retroactively revised due to changes in Rakuten General Insurance's revenue accounting method, etc. *2 Includes Ichiba, Travel, Rakuten Rewards (Ebates), Card, Bank, Life Insurance, etc *3 Includes Securities, General Insurance and Investment Business *4 Includes Logistics-related investments, Mobile, Payment, NBA broadcasting rights, Rakuten Rewards (Ebates) rebranding costs, etc 2 Q4/20 Revenue and Operating Income*1 (JPY bn) Q4/19 Q4/20 YoY Core Business*2 Revenue 291.4 331.6 +13.8% Operating Income 33.6 48.2 +43.4% Non-recurring / Investments*3 Revenue 33.3 31.8 -4.4% Operating Income -20.2 19.6 +39.9 Future Growth Investments*4 Revenue 75.6 98.6 +30.5% Operating Income -44.9 -92.6 -47.7 Adjustments Revenue -42.1 -46.7 -4.6 Operating Income -0.7 1.4 +2.1 Consolidated Revenue 358.2 415.3 +16.0% Non-GAAP Operating Income -32.2 -23.3 +8.9 IFRS Operating Income -40.2 -33.3 +6.9 *1 From Q1/20, some figures have been retroactively revised due to changes in Rakuten General Insurance's revenue accounting method, etc. *2 Includes Ichiba, Travel, Rakuten Rewards (Ebates), Card, Bank, Life Insurance, etc *3 Includes Securities, General Insurance and Investment Business *4 Includes Logistics-related investments, Mobile, Payment, NBA broadcasting rights, Rakuten Rewards (Ebates) rebranding costs, etc 3 Massive Expansion of the Rakuten Ecosystem Consistent growth towards target Membership Value of JPY 10tn Membership Value Target Cross JPY 10tn Use x x Unique Q4/20 Uniquex LTV Membership Value UsersUser JPY 8.9tn +66.3% YoY 4 Rakuten Ecosystem Membership Value Membership Value climbed +66.3% YoY from increased Ichiba, Securities, and Rakuten Card users and improved gross profit amid pandemic (JPY tn) +1.65 +0.01 8.9 +0.42 +1.49 5.4 Revenue growth and retention Active user growth in improvement in • Rakuten Securities • Rakuten Ichiba • Rakuten Ichiba • Rakuten Securities • Rakuten Books, etc • Rakuten Card, etc. Q4/19 Active Users x Cross-Use x (LTV - CAC) Q4/20 * Membership value of MVNO is excluded due to the ending of new applications * Membership value of German marketplace business is excluded due to its closure 5 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 Total Global GTV*1*2 (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 7 Expansion of Cross-Use Ratio* *Number of Rakuten members who have utilized two or more Rakuten services during the past 12 months of the listed month (As of December 31, 2020) (Applicable services limited to those which can earn Rakuten Points.) 8 FY2020 Consolidated Results Summary (JPY bn) FY2019 FY2020 YoY Revenue 1,263.9 1,455.5 +15.2% Non-GAAP Operating Income 95.1 -102.7 -197.8 Non-GAAP Operating Income 108.1 +37.6% Excluding Mobile, Logistics and Investment Business 148.9 IFRS Operating Income 72.7 -93.8 -166.6 9 Q4/20 Consolidated Results Summary (JPY bn) Q4/19 Q4/20 YoY Revenue 358.2 415.3 +16.0% Non-GAAP Operating Income -32.2 -23.3 +8.9 Non-GAAP Operating Income 27.6 +60.7% Excluding Mobile, Logistics and Investment Business 44.3 IFRS Operating Income -40.2 -33.3 +6.9 10 FY2020 Revenue and Operating Income (JPY bn) *1 *2 *2 *1 Due to the transfer of all shares of OverDrive Holdings, Inc. in Q2/20, OverDrive’s profit and loss has been excluded from the Q3/20. Excluding the company's profit recorded in Q3/19, YoY profit of “Others” segment increased. *2 From Q4/20, Contents related businesses were transferred from the Internet Services segment to the Mobile segment. 11 Q4/20 Revenue and Operating Income (JPY bn) *1 *2 *2 *1 Due to the transfer of all shares of OverDrive Holdings, Inc. in Q2/20, OverDrive’s profit and loss has been excluded from the Q3/20. Excluding the company's profit recorded in Q3/19, YoY profit of “Others” segment increased. *2 From Q4/20, Contents related businesses were transferred from the Internet Services segment to the Mobile segment. 12 FY2020 Operating Income Reconciliation (JPY bn) FY2019 FY2020 YoY Non-GAAP Operating Income 95.1 -102.7 -197.8 Amortization of Intangible Assets (PPA) -8.8 -9.5 -0.7 Stock Based Compensation -10.1 -10.6 -0.5 One-off items -3.5 28.9 +32.4 IFRS Operating Income 72.7 -93.8 -166.6 13 Q4/20 Operating Income Reconciliation (JPY bn) Q4/19 Q4/20 YoY Non-GAAP Operating Income -32.2 -23.3 +8.9 Amortization of Intangible Assets (PPA) -1.9 -1.6 +0.3 Stock Based Compensation -2.6 -2.6 +0.0 One-off items -3.5 -5.9 -2.4 IFRS Operating Income -40.2 -33.3 +6.9 14 Rakuten, Fintech: Balance Sheets As of Dec 31, 2020 (Subsidiaries include internal transactions) (JPY bn) Rakuten Group Rakuten Card Rakuten Rakuten Rakuten Rakuten, Inc. Rakuten Bank, Ltd. (Consolidated) Co., Ltd. Securities, Inc. Life Insurance Co., Ltd. General Insurance * Rakuten, Inc., Rakuten Bank, Ltd., Rakuten Card Co., Ltd., Rakuten Securities, Inc., Rakuten Life Insurance Co., Ltd., and Rakuten General Insurance Co., Ltd. are based on Co., Ltd. IFRS non-consolidated balance sheets. * Bonds and borrowings = Corporate bonds + CP + Borrowings * Subsidiaries include internal transactions 15 Cash Flow Breakdown: Jan-Dec, 2020 (JPY bn) Balance of cash M&A, Balance of cash Non-Financial Businesses Financial Businesses * Common Dec 31, 2019 Investments Dec 31, 2020 Operating Investing Financing Operating Investing Financing Change in assets & Increase in cash and liabilities Tax cash equivalents -96.6 Operating CF (Excl. Tax) Profit (adjusted) Change in investment Other securities investing CF Increase in cash and Increase in cash and Tax cash equivalents cash equivalents +1,575.8 +63.6 * “M&A and investments” includes “Increase and Decrease in restricted deposits”, “Purchase of investment securities” “Acquisition of investments in associates and joint ventures” and “Proceeds from sales and redemption of investment securities” of Non-Financial activities in addition to “Acquisition of subsidiaries” 16 Internet Services Segment 17 Domestic E-Commerce GMS* (JPY tn) +19.9％ YoY *1 GMS comprises Ichiba, Travel GTV on checkout basis, Books, Golf, Fashion, Dream businesses, Beauty, Delivery, Rakuten24 (Direct), Auto business, Rakuma, Rebates Rakuten Seiyu Netsuper, etc. *2 Eliminated internal transactions in some businesses. Also, ticket business is transferred to Mobile segment. These have resulted in retroactive adjustments after FY2018 Domestic E-Commerce GMS*1*2 (JPY bn) *1 GMS comprises Ichiba, Travel GTV on checkout basis, Books, Golf, Fashion, Dream businesses, Beauty, Delivery, Rakuten24 (Direct), Auto business, Rakuma, Rebates Rakuten Seiyu Netsuper, etc. *2 Ticket business is transferred to Mobile segment. This has resulted in retroactive adjustments. 19 Domestic E-Commerce Results* Revenue strongly grew at +35.1% YoY. EC businesses growth and travel business expansion due to Goto campaign contributed to the growth. Accordingly, operating income growth strongly increased at +70.3% YoY even under logistics-related investments. (JPY mm) * Domestic E-Commerce = Ichiba, Travel, Books, Golf, Rakuten Fashion, Dream businesses, Beauty, Delivery, Rakuten24 (Direct), Logistics, Auto business, Rakuma, Rebates, etc. 20 Q4/20 Domestic E-Commerce Operating Income Breakdown Growth of Marketplace businesses ・Rakuten Ichiba ・Rakuten Travel ・ ＋70.3％ (JPY bn) Rakuten GORA etc. YoY -1.0 -2.1 +11.7 Investing phase businesses Logistics-related investments / ・ Rakuten 24 (Direct) costs, others. ・Rakuma ・Rakuten Books ・Rakuten Fashion ・Rakuten BIC 23.1 ・Rakuten Seiyu Netsuper etc. 21.0 12.3 Q4/19 Q4/20 Q4/20 Domestic E-Commerce Domestic E-Commerce Domestic E-Commerce Operating Income Operating Income Operating Income (excl. logistics-related investments/costs ) 21 Q4/20 Domestic E-Commerce Operating Income Breakdown Due to Goto campaign, Q4/20 OI improved strongly （JPY bn） +4.3 -2.1 Logistics-related investments / +6.4 COVID-19 negative impact costs, others. ・Rakuten Travel etc. Boosted by COVID-19 23.1 ・Rakuten Ichiba 21.0 ・Rakuten GORA ・Rakuten 24 (Direct) ・Rakuma 12.3 ・Rakuten Books ・Rakuten Fashion ・Rakuten BIC ・Rakuten Seiyu Netsuper etc. Q4/19 Q4/20 Q4/20 Domestic E-Commerce Domestic E-Commerce Domestic E-Commerce Operating Income Operating Income Operating Income (excl. logistics-related investments/costs) 22 Domestic EC Marketplace businesses* Operating Income Market place businesses operating income grew strongly due to Ichiba growth, Travel and GORA operating income improvement.