Rakuten Group, Inc. · TSE:4755
Rakuten — Q1 2015 Earnings Presentation
81 slides from Rakuten's earnings presentation, May 8, 2015
Slide 1: FY2015 First Quarter Consolidated Financial Results
FY2015 First Quarter Consolidated Financial Results May 8, 2015 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
Slide 2: Intellectual Property
Intellectual Property Rakuten received “Commissioner of the Japan Patent Office Award” at FY2015 Intellectual Property Achievement Awards Ceremony on Apr. 17 The first E-Commerce company to receive this award OX ORakuten
Slide 3: Achieved Target TOEIC Score
Achieved Target TOEIC Score [OCS opnoenne 802.6 800 700 600 526.2 500 Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr 2010 2011 2012 2013 2014 2015 OA ORakuten 3
Slide 4: Q1/15 Financial Results
EB Q1/15 Financial Results Rakuten Group started to disclose Non-GAAP financial measures, which is used for management’s decision making, as well as IFRS measures, since FY2015. We define Non-GAAP operating income as IFRS operating income excluding non-recurring and other items. We believe Non-GAAP
Slide 5: Q1/15 Financial Highlights
Q1/15 Financial Highlights = Non-GAAP OI: +17.3% YoY m= IFRS Operating Income: +28.7% YoY = Other Internet Services loss shrinking = Internet Finance OI: +38.8% YoY m™ Overseas E-Commerce GMS: +47.8% YoY OX ORakuten
Slide 6: Q1/15 Financial Results Summary
Q1/15 Financial Results Summary (JPY bn, IFRS) Q1/14 Q1/15 YoY Revenue 138.3} 158.8) +14.9% Non-GAAP Operating Income 27.4| 32.1) +17.3% IFRS Operating Income 22.6| 29.0) +28.7% OX ORakuten
Slide 7: Q1/15 Financial Results by Segment
Q1/15 Financial Results by Segment (JPY bn, IFRS) Q1/14 Q1/15 YOY Rakuten Ichiba and Rakuten Travel Revenue 47.1 45.8 -2.7% Operating Income 24.3 23.2 -4.4% Other Internet Services Revenue 37.8 50.3 +33.1% Operating Income -9.7 -4.2 +5.5bn Internet Finance Segment Revenue 54.4 65.5 +20.4% Operating
Slide 8: Q1/15 Operating Income Reconciliation
Q1/15 Operating Income Reconciliation (JPY bn, IFRS) Q1/14 Q1/15 YoY Non-GAAP Operating Income 27.4, 32.1) +17.3% Amortization of Intangible Assets (PPA) -1.3 -].7| -0.4bn Stock Based Compensation -0.5 -1.4| -0.9bn One-off items’ -3.1 -| +3.1bn IFRS Operating Income 22.6) 29.0) +28.7% * One-off item
Slide 9: Shrinking Other Internet Services Loss
Shrinking Other Internet Services Loss m Loss Improvement: +5.5 bn YoY (JPY bn, IFRS) Q1/14 Ql1/15 he Income +5.5 bn YoY 42 -9.7 @X @Rakuten
Slide 10: Domestic Gross Transaction Value
Domestic Gross Transaction Value (JPY bn) Domestic GTV 1,737.9 +12.8% YoY 1,540.1 . ; . Edy'and Point Partner? . 3 1,120.4 & Credit Card 880.6 +19.7% YOY 604.2 Travel 145.2 (175.6 — +20.9% YOY 127.0 Domestic E-Commerce® 389.2 514.3 507.9 -1.2% YoY Q1/13 Q1/14 Q1/15 *]: Edy Transaction Value = Amount
Slide 11: Overseas E-Commerce GMS
Overseas E-Commerce GMS m™ Overseas GMS"! growth jumped up due to Ebates UPY bi uen 140.4 Overseas Total +47.8% YoY 95.0 (FX adjusted: +32.8% YoY) 1” _-__— "7 ty 1Ebates?| ; 1 27.5 | y Ql/13 Ql/14 Ql/15 *]: Overseas GMS = Taiwan Rakuten Ichiba + Tarad Premium Mall + Rakuten.com + PriceMinister + Rak
Slide 12: Internet Finance
Ff] internet Finance OX ORakuten 12
Slide 13: Rakuten Card Results
Rakuten Card Results = Operating Income +53.1% YoY on strong revenue growth and IFRS 15 (JPY mm) naga 22033 27,015 Revenue 22,201 22,474 23,833 °* +20.2% YoY 18,602 19,342 Va Operating Income +53.1% YOY . 4,753 54538 2,548 2,726 3,191 418 4014 (4,224 % = Revenue ml | a | a | | [ = Operating Income Q
Slide 14: Rakuten Card OI & Margin Growth
Rakuten Card Ol & Margin Growth = Operating Income Margin exceeded 22% Ol Margin (JPY mm) a 22.7% Operating 19.1% 20:37 Income 18.5% 17.9% 17.7% 16.5% 6,145 _ 15.3% 14.7% 5,538 4,753 4118 4,014 4,224 3 2,548 2,726 a mam Operating Income =—=-OI Margin QI/13_— 2/13. 3/13" Q4/13.— 1/14. 2/14. 3/14. 4/1
Slide 15: Rakuten Card Shopping Transaction Value and Revolving Balance
Rakuten Card Shopping Transaction Value and Shopping Revolving Balance* Rakuten Card Shopping Transaction Value Rakuten Card Shopping Revolving Balance (PY bn) +16.5% YOY 6.5% YOY (PY bn) +23.8% YOY _ 8% YOY 959.6 gs96 944, 3 O15 ~~ 23, 0 865.5 256.7 : ! : ! Ql/14 Q2/14 Q3/14 Q4/14 Q1/15 Mar/14— Jun
Slide 16: Rakuten Bank Results
Rakuten Bank Results m Steady growth of Rakuten Bank Super Loans and successful cost control resulted in Operating Income +57.3% YoY (JPY mm) 13,680 14,270 Revenue 12,370 12,760 +22.7% YOY 11,040 11,439 11,631 * 10,334 9,571 Operating Income +57.3% YOY 3,018 3,111 . 2,533 3 1,473" 1,714 1,771 2153 1
Slide 17: Rakuten Bank: Core Net Business Profit
Rakuten Bank: Core Net Business Profit (JPY bn) iitiiill Ql/13 Q2/13 Q3/13 Q4/13 al/14 2/14 Q3/14 a4/14 Ql/15 *Core net business profit = Net business profit - General and administrative expenses - Gains (losses) related to bonds Net business profit = Net interest income and expenses + Net fees and
Slide 18: Rakuten Bank Super Loans
Rakuten Bank Super Loans m Steady growth of loan receivables: +22.6% YOY Loan receivables’ Customers” (JPY bn) (‘000 persons) 312.2 Loan receivables 300 265.7 280.5 293.3 600 +22.6% YOY 254.7 . se 250 500 Loan customers + 9 200 Le 24.5% YOY 150 — 355 374 300 320 335 100 200 50 100 mmm Loan receivabl
Slide 19: Rakuten Bank Deposits
Rakuten Bank Deposits = Deposits firmly increased by +22.8% YoY (JPY bn) 1,248.5 Other Deposits” a JPY 1 tn 11829 1,008.8 Time Deposits ra Ordinary Deposits 686.8a@ Dec/11 Dec/12 Dec/13 Dec/14 Mar/15 “2 *1: Other deposits include deposits in foreign currencies and others *2: Deposits as of end of Ma
Slide 20: Best Direct Bank Award 2015
Best Direct Bank Award 2015 @ Rakuten Bank received the “Best Direct Bank Award 2015” by The Asian Banker. THE ASIAN BANKER’ EXCELLENCE IN RETAIL FINANCIAL SERVICES INTERNATIONAL AWARDS 2015 sy Is SO BE ID Jk I IS eh aes} AN IND AK ROX Rakuten 20
Slide 21: Rakuten Securities Results
Rakuten Securities Results (JPY mm) "3,178 12,477 12,246 Revenue 11,244 +15.8% YoY 10,104 10,581 10,573 8,989 9,213 a 6,959 g “Perenng Income 5,866 +19.8% YoY 4,900 448 4890 = 4, 7 3, m= Revenue [|] Operating Income I Q2/13 @3/13. 4/13. 1/14 I Q3/14 Q4/14 Q1/15 OA ORakuten 21
Slide 22: Rakuten Securities Investment Trust Asset Balance
Rakuten Securities Investment Trust Asset Balance m Asset balance of Investment trusts exceeded JPY 519bn and maintained high growth: +45.9% YoY (JPY bn) 519.7 +45.9% YoY — 496.6 436.2 397.1 356.3 325.0 333.1 | | Mar/13 Jun/13 Sep/13 Dec/13 Mar/14 Jun/14 sep/14 Dec/14 @X @Rakuten Mar/15 22
Slide 23: Rakuten Securities Investment Trust Sales
Rakuten Securities Investment Trust Sales = Sales of investment trusts hit a record high in Q1/15 (JPY bn) 129.2 125.7 111.7 +67.8% YOY _—_ 845 91.3 79.7 77.0 Ql/13 Q2/13 Q3/13 Q4/13 al/14 Q2/14 Q3/14 4/14 Ql/15 ROX Rakuten 23
Slide 24: Rakuten Securities FX Trading Value
Rakuten Securities FX Trading Value = Trading value increased due to high volatility since last fiscal year (PY bn) 108,584 90,768 62,819 +133.2% YOY 39,956 41,111 34,454 38,916 L ; I li I ; Ql/13 Q2/13 Q3/13 Q4/13 Ql/14 i Q3/14 Q4/14 Ql/15 ROX Rakuten 2
Slide 25: Rakuten Securities Stock Brokerage Trading Value
Rakuten Securities Stock Brokerage Trading Value m Stock brokerage trading value continue to perform solidly (PY bn) 19,408 12,919 ee 6% YOY 12,518 11,338 12,156 11,553 11,540 11 690” | Ql/13 Q2/13 Q3/13 Q4/13 Ql/14 Q2/14 Q3/14 Q4/14 Ql/15 ROX Rakuten 25
Slide 26: Rakuten Life Insurance Results
Rakuten Life Insurance Results ™ Operating Income: +37.5% YoY (JPY mm) 8,905 8,225 8,133 8,047 Revenue +19.0% 6,716 6,786 6,717 6,804 6,761 yY 19.0% YoY Operating Income +37.5% YoY 3197, «696 B14 gy} 503° 505 ge] G5 = Revenue = | _| - = = - = Operating Income Q1/13) @2/13) @3/13. 4/13. 1/14. 2/14. 3
Slide 27: Rakuten Life Insurance Contracts
Rakuten Life Insurance Contracts’! No. of Policies Annualized Insurance Premiums ‘oeocontoets) +55.6% YOY oven) +20.7% YoY 369 8,599 303 qieg A278 = | I a4/142—Qi/15 al/14 Q2/14 Q3/14 a4/142 —Qi/15 *1: Excluding mutual aid association *2: From Q4/14, including one year fixed-term cancer insurance fo
Slide 28: Domestic Internet Services
EJ Domestic Internet Services OX ORakuten 28
Slide 29: Domestic E-Commerce GMS
Domestic E-Commerce GMS = Q1/15 Domestic EC GMS : -1.2% YoY, Flash report of Apr 2015: over+20% YoY (JPY bn) 562.0 928-8 514.3 507.9 -1.2% YoY ass.6 Ot! +14.2% CAGR vs 2013 420.6 431.3 389.2 Q1/13) Q2/13. Q3/13. Q4/13. Q1/14 Q2/14 3/14 Q4/14 Ql1/15 * Domestic E-Commerce GMS includes consumption tax.
Slide 30: Rakuten Ichiba Results
Rakuten Ichiba Results m Revenue growth (adjusted)’: -1.9% YoY m™ Operating Income growth: -5.8% YoY (JPY mm) 41,001 Revenue~ 39,587 38,560 Rev 35,979 35,734 36,632 1.9% YoY 33,593 33,768 ’ ’ Before adjustment: -5.0% YoY 30,327 / 21,252 20,979 21,951 18,735 17,704 17,662 17,442 18,136 OT erating Inc
Slide 31: Rakuten Ichiba: Unique Buyers
Rakuten Ichiba: Unique Buyers’ (Millions of Persons) 15.84 “15.08 14.69 14-88 15.35 +1.8% YoY 13.93 +8.9% CAGR vs 2013 13.53 12.94 | | | | / Q1/13) Q@2/13. Q3/13. Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 * Unique Buyers: Number of buyers sorted by e-mail address with purchasing records during the listed
Slide 32: Started Locker Service with Japan Post
Started Locker Service with Japan Post Finn D SZER +) ai HE) RF SAFE SSH CMM LING ! (SSIES | REE! HAKO POST (©JAPAN POST Co, Ltd. @X @Rakuten 32
Slide 33: Released GINGER Mirror
Released GINGER Mirror Free smartphone fashion magazine linked with ecommerce launched with Gentosha Wa By yy—-85—) (VU0r 4A140(X) 12:00 BF ! @X @Rakuten 33
Slide 34: Rakuten Ichiba Mobile Ratio
Rakuten Ichiba Mobile Ratio’ * Mobile Ratio = Ichiba mobile GMS / Total Ichiba GMS Mobile GMS is preliminary data and includes feature phones, smartphones and tablets @X ORakuten 34
Slide 35: Distribution of Merchant Plans
Distribution of Merchant Plans Ganbare Plan Mega Plan + Standard Plan 40.1% Mar/12 Mar/13 Mar/14 Mar/15 * Rakuten Ichiba’s main merchant plans are below + Ganbare Plan (Monthly fee: JPY 19,500, | Commission on PC GMS: 3.5-6.5%, Listable items: Up to 5,000 items) + StandardPlan (Monthly fee: JPY 50,0
Slide 36: Domestic E-Commerce GMS per Merchant
Domestic E-Commerce GMS per Merchant Mar/13 Dec/14 Mar/15 Domestic E-Commerce GMS Per Ichiba Merchant"! 37.9 48.3 48.1 (JPY mm, LTM’?) ic E-C GMS soe evs | 1,523.3 | 2,013.0 | 2,006.6 Number of Merchants| 41,145 | 41,442 | 41,568 *1: Number of Merchants is average of two most recent month ends *2: M
Slide 37: Initiatives for a Safe, Secure Shopping Mall
Initiatives for a Safe, Secure Shopping mall = Tie-up with brand owners and associations to prevent pirated goods Over 1,000 Brands * 150 brands as of Sep, 2014 OX ORakuten 37
Slide 38: Travel Gross Booking Transaction Value
Travel Gross Booking Transaction Value m™ Gross Bookings: +20.9% YoY due to favorable domestic accommodation bookings, Rent-a-car, inbound business, and Golden Week reservations (JPY bn) 180.8 175.6 +20.9% YOY 161.8 7 158.5 153.5 143.7 140.4 145.2 I | | | . Q1/13_ @2/13_ Q3/13_ Q4/13_ Q1/14 @2/14 Q3
Slide 39: Rakuten Travel Results
Rakuten Travel Results = Operating Income: +4.5% YoY. Aiming to enhance global strategy (JPY mm) 10,880 Revenue "0,197 9,546 Q. 80 +7.5% YoY 8,848 7,824 7,821 8,536 3.284 I operating Income +4.5% YOY 5,279 4,064 4,126 3,557 d 2, 1 2, 7] — B 1 m Revenue = Operating Income Q1/13 i Q3/13, Q4/13.Q1/14 i
Slide 40: Overseas E-Commerce
J overseas E-Commerce OX ORakuten 40
Slide 41: Further Expansion Overseas E-Commerce
Further Expansion Overseas E-Commerce = Ebates Model = Cross Border Trading @ RMSQ (Rakuten Merchant Server global) OX ORakuten 41
Slide 42: Ebates GMS Growth (Q1/15)
Ebates GMS Growth (Q1/15) +55.3% YOY * FX adjusted base OX ORakuten 42
Slide 43: Ebates Model Expansion
Ebates Model Expansion = Merchants in US listing on Ebates China for cross-border trading EI CG Sad» 2 Ashios MEO 28S +E BOIS E70 aE RALPH LAUREN ebay oie! 4 eR Spring “py. Private Sale femme SUNGRRE ITE VA la 23 0-5A1812:06 AMA | I RR LOCCITANE ebay sof Fuiew Couture © BS LOCCITANE (ka) eBay(BRNZA
Slide 44: Enhancing Rakuten Global Market
Enhancing Rakuten Global Market @Rakuten Global Market m Japanese Ichiba merchants expanding their sales to overseas buyers TREND HERMESHandoags Nendoroid ABATHINGAPE fila DISCOVERING EXOTIC (a5 ia Tk UsGare: ee Winning Glov Selected Shops a SHOPPING FAIR Flos OMT Masier2-167138 Get Ready for Spring
Slide 45: Ichiba Cross-Border Trading GMS to China
Ichiba Cross-Border Trading GMS to China m Cross-Border Trading GMS from Japan to China: +64.7% YoY (JPY) Cross Border Trading GMS +64.7% YOY alull Ql/13)-Q2/13,— 3/13. 4/13 QI/14.—s 2/14. 3/14. 4/14 1/15 ROX Rakuten 5
Slide 46: Digital Content
EJ Digital Content OX ORakuten 46
Slide 47: Kobo Registered Users
Kobo Registered Users Cumulative Registered Users + | 9.8% YoY (Millions of Persons) a9 229 . 19.9 20:2 18.4 16.5 15.0 13.8 12.2 10.5 9.2 8.0 og 18 vil | _ | Sep Dec i Jun Sep Dec Mar/12 Jun Sep Dec Mar/13 Jun Sep Dec Mar/14 Jun Sep Dec Mar/15 ROX Rakuten a7
Slide 48: OverDrive Joined Rakuten Group
OverDrive Joined Rakuten Group OverDrive ~and ~ kobo @Rakuten OX ORakuten 48
Slide 49: OverDrive: No.1 Coverage with North American Libraries
OverDrive: No.1 Coverage with North American Libraries 0% * Source: OverDrive Survey @X ORakuten 49
Slide 50:
50
Slide 51: We are still in the early years of digital book transformation
We are still in the early years of a 25 year digital book transformation 100% - ee ee ote 7 -7 . -7 - a - a? 80% - , yaa PWC and Library yo 7 , Journal prediction , Yo < 80% - through 2020 7 , 2 / 7 FS , ¢ 77 @ 40% + Z at ip & y Y taram EMEA “gony Ys 2018F (13%) extrapolation (6%) (1%) US 2013 (6%)
Slide 52: Viki Monthly Active Users
Viki Monthly Active Users MAU +37.0% YoY (Millions of Persons) N Mar/12 Jun/12 Sep/12 Dec/12 Mar/13 Jun/13 Sep/13 Dec/13 Mar/14 Jun/14 Sep/14 Dec/14 Mar/15 *Viki MAU comprises Viki and its partner sites including Roku, Google Chrome, Xbox, Youtube, and others. ROX Rakuten 52
Slide 53: Viki Watch Time: Q1/15
Viki Watch Time: Q1/15 (Billion minutes) 2 - 92 +55.0% YoY / 1.89 Ql/14 Ql/15 *Viki Watch Time comprises primarily Viki.com domains. Excludes time watched on platforms where Viki does not directly sell the ad inventory at this time, such as Youtube.com and third party platforms. @X @Rakuten 53
Slide 54: Others Segment
[J others Segment OX ORakuten 54
Slide 55: Viber User Base
Viber User Base MAU 249 million OX ORakuten
Slide 56: Viber Unique IDs
Viber Unique IDs (Millions of IDs) 7 = 19 40 — iz 573 Jun/11 Dec/11 = 12 L 12 Jun/13 Dec/13 Jun/14 Dec/14 As of end ; : ; a Apr, 2015 * Unique IDs: Unique phone numbers excluding deactivations @X @Rakuten 56
Slide 57: Viber Ranks No.1 in App User Ratings
Viber Ranks No. 1 in App User Ratings App Annie messaging app iOS user ratings (1-5 stars) 4.2 WhatsApp WeChat KakaoTalk LINE a App Annie, based on average of user ratings for iOS for last 3 months: Jan! to Mar 31, 2015 ROX Rakuten 57
Slide 58: Rakuten Mobile
ROX @Rakuten Rakuten Mobile = Opening of Rakuten Mobile counter in Rakuten Cafe, introduction of new device line-up, and start of data SIM service drove significant growth of new users. Monthly Fee (JPY) Basic | 3.1GB) 5GB | 10GB Plan Plan Plan Plan “aim | 1,250 | 1,600 | 2,150 | 2,960 Data SIM ‘sms
Slide 59: Appendix
BW Appendix - Financial Condition - Other Information OX ORakuten 59
Slide 60: Financial Condition
BW Financial Condition OX ORakuten 60
Slide 61: Rakuten Group: Balance Sheets
Rakuten Group: Balance Sheets (As of March 31, 2015, JPY bn) Cash and cash equivalents 445.2 Financial assets for Financial securities liabilities biz for 1,183.8 | Securities _ biz 1,081.5 Thvestment securities jandticans for inking ble a Deposits Bondsand Loansfor | banking Porrowings creditcard]
Slide 62: Debt from Outside Financial Institutions
Debt from Outside Financial Institutions"! 642.2 (JPY bn) 589.9 Rakuten, Inc.*2 481.3 485.4 501.0 and Others LY 301.2 219.3 214.7 246.0 Rakuten Securities, Inc. oe Rakuten Card Co., Ltd.*2 Mar/14 Jun/14 Sep/14 Dec/14 Mar/15 *1: Debt from outside financial institutions = Corporate Bonds + CP + Borrow
Slide 63: Cash Flow Breakdown: Jan - Mar, 2015 (1)
Cash Flow Breakdown: Jan - Mar, 2015 (1) Increase of cash and cash equivalents JPY12.8bn Increase of cash and cash equivalents JPY53.0bn JPY bn) Balance of cash Balance of cash Dec 31,2014 i-7~ Non-Financial Businesses ---, _,---------- Financial Businesses: - - - - -- -- ~ . M&A Common Mar3l, 2015
Slide 64: Cash Flow Breakdown: Jan - Mar, 2015 (2)
Cash Flow Breakdown: Jan - Mar, 2015 (2) (JPY bn) Overview of cash flows for three ended March 31, 2015 Consolidated Financial Non-Financial Common Income before income tax 28.8 15.7 13.1 Depreciation and amortization 9.1 3.2 6.0 - Other loss (profit) (0.0) - : (0.0) Decrease (Increase) in operating
Slide 65: Cash Flow Breakdown: Jan - Mar, 2015 (3)
Cash Flow Breakdown: Jan - Mar, 2015 (3) (PY bn) w of cash flows for three months ended March 31, 2015 Consolidated Financial Common Increase in restricted deposits (0.5)| - Increase in time deposits (2.0) (2.0) Decrease in time deposits 13 1.3 0.1 Purchase of property, plant and equipment (2.8) (1.
Slide 66: Balance of Goodwill
Balance of Goodwill December 31, (JPY mm, IFRS) March 31,2015 Internet Services 214,111 : 210,216 , PRICEMINISTER S.A.S 15,679 6,528 13,943 5,806 Rakuten Kobo Inc. 20,813 34 19,035 31 VIKI, Inc. 19,961 - 18,673 - Ebates Group 99,493 - 99,179 - Slice Technologies, Inc. 13,478 - 13,436 - Others 44,687
Slide 67: Property, plant and equipment / Intangible assets
Property, plant and equipment Intangible assets Total Property, plant and equipment Intangible assets Total * Acquisition Basis OX ORakuten (JPY bn, IFRS) 2.06| 2.65; 2.66 | 2.63] 10.01 7.11 5.74; 8.31 7.05 | 28.21 9.17 | 8.39; 10.97 | 9.69 | 38.22 451 7.90 | 24 67
Slide 68: Rakuten, Inc. Balance Sheet (Non-consolidated)
Rakuten, Inc. Balance Sheet (Non-consolidated) (JPY bn, IFRS) Liabilities and net assets Mar/15 Cash and cash equivalents 33.4] |Accounts payable - trade 44) Accounts receivable - trade 57.3] |Bonds and borrowings 375.5 Property, plant and equipment 10.9] |Other liabilities 149.2 Intangible assets 2
Slide 69: Other Information
I other Information OX ORakuten 69
Slide 70: Rakuten Ichiba: Operating Income Margin
Rakuten Ichiba: Operating Income Margin (JPY mm) aii3 Q2/13 03/13 | 04/13 Qi/14 2/14 | 03/14 Q4/14 | Q1/15 Revenue 30,327| 33,593] 33,768 39,587) 38,560] 35,979] 35,734| 41,001, 36,632 Revenue * 30,327| 32,742| 32,813 38,361) 37,354| 35,017) 34,755| 39,429] 36,632 on a Net basis Operating Income 17,
Slide 71: Rakuten Card: Revenues and Expenses
Rakuten Card: Revenues and Expenses (JPY mm) IFRS ai/14_| @2/14 | @3/14 | @4/14 | Q1/15 YoY Total revenues 22,474 23,833 24,823 27,033 27,015| +20.2% Shopping 13,840 14,857 15,456 16,378 16,832} +21.6% Revolving 8,177 8,719 9,184 9,747 10,264 +25.5% Others 5,663 6,137 6,271 6,631 6,568} +16.0% Credi
Slide 72: Rakuten Card: Transaction Volume
Rakuten Card: Transaction Volume (JPY mm) ai/i4_ | @2/14 | @3/14 | @4/14 | @1/15 YoY General services 808,451; 820,081) 862,218) 956,541) 941,546) +16.5% Card shopping 807,695} 819,338) 861,399} 955,722) 940,697} +16.5% Others 757 743 819 820 849 +12.2% Financing 23,267 26,030 27,787 28,005 28,368)
Slide 73: Rakuten Card: Loan Receivables Balance
Rakuten Card: Loan Receivables Balance for Rakuten Bank Super Loans (Off-balance) (JPY mm) ai/14 | @2/14 | @3/14 | @4/14 | Q1/15 YoY General services 526,055} 515,201; 538,892} 616,292| 607,906) +15.6% Card shopping 525,798} 514,960} 538,621; 616,003} 607,595} +15.6% [Revolving balance (principal) 2
Slide 74: Rakuten Card: Allowance for Doubtful Accounts
Rakuten Card: Allowance for Doubtful Accounts (JPY mm) Q1/14 2/14 | 03/14 | aa/i4 Q1/15 YoY Rakuten Card 598,144) 589,694, 617,425) 698,240} 694,694) +16.1% Normal 585,679} 577,801} 605,786) 686,601} 682,878] +16.6% Doubtful (4 months-and-over-delinquent) 12,465 11,894 11,638 11,640 11,816 -5.2% Sec
Slide 75: Allowance ratio changes for doubtful accounts
• Reduced allowance ratio from 100% to 90% for 13 months-and-over-delinquent accounts before written off, reflecting historical collection results • Reversal of allowance for doubtful accounts (decrease in cost): JPY848mm • Tightened standard on allowance for doubtful accounts for up to 12 month
Slide 76: Rakuten Bank: Revenues and Expenses
Rakuten Bank: Revenues and Expenses (JPY mm) Qai/14 | @2/14 | @3/14 | @4/14 | Q1/15 YoY Revenue (IFRS, non-consolidated) (2) 11,631 12,370 12,760 13,680 14,270 +22.7% Differences between J-GAAP and IFRS, and etc. (1-2) 241 195 274 297 318 Ordinary income (J-GAAP, consolidated*) (1) 11,873 12,565 13,
Slide 77: Rakuten Bank: Balance Sheets (IFRS)
Rakuten Bank: Balance Sheets (IFRS) (JPY bn) (JPY bn) assets | nar/t5 Invested assets 1,301.9) Deposits (received) 1,248.5 Deposits (paid) 297.6) Ordinary Deposits 686.8 Deposits with the Bank of Japan 294.6 Time Deposits 509.0) Other deposits 3.0 Other Deposits? 52.7] Call loans 23.0) other liabili
Slide 78: Rakuten Life Insurance: Quarterly Results and Major Indices
Rakuten Life Insurance: Quarterly Results and Major Indices (No. of contracts, JPY mm) IFRS Qi/14 a2/144 | @3/14 | @4/14 Q1/15 Revenue 6,761 8,225 8,905 8,133 8,047 Operating Income 411 62 505 461 565 | @l/14 Q2/14 Q3/14 Q4/14°5 Q1/15 No. of New Policies 17,883 14,220 13,582 60,666 75,361 Annualized
Slide 79: Advancing Cross-use Ratio in Japan
Advancing Cross-use Ratio* in Japan 59.6% 56.8% 52.9% : : ; ' Mar/11 Mar/12 Mar/13 Mar/14 Mar/15 * Purchasing ratio of Rakuten Members who have utilized two or more Rakuten services during the past 12 months of the listed month. Applicable services are limited to those which can earn Rakuten Super P
Slide 80: Rakuten Membership
Rakuten Membership (Millions of persons) Mar/14, Dec/14, Mar/15| YoY Rakuten members(cumulative) | 91.93 | 97.75 99.77 | +8.5% Rakuten members(Logged-in*) | 64.59 | 70.33 | 72.34 +12.0% * Rakuten Members who logged in at least once after membership registration (excluding members who withdrew their
Slide 81: Rakuten
@Rakuten