Rakuten Group, Inc. · TSE:4755
Rakuten — Q3 2025 Earnings Presentation
75 slides from Rakuten's earnings presentation, Nov 13, 2025
Slide 1: FY2025 Third Quarter Consolidated Financial Results Appendix
FY2025 Third Quarter Consolidated Financial Results Appendix November 13, 2025 Rakuten Group, Inc. • Figures in this document are rounded to one decimal place, so there may be some discrepancies with the numbers in other disclosed materials. • Past figures may be retroactively adjusted due to change
Slide 2: Executive Summary
Executive Summary Consolidated Results • Revenue increased across all segments: Internet Services, FinTech, and Mobile, resulting in record-high revenue for Q3 of JPY 628.6 bn (+10.9% YoY) • In addition to revenue growth, a significant profit improvement at Rakuten Mobile led to Non-GAAP OI of JPY 3
Slide 3: Executive Summary: Internet Services
Executive Summary Internet Services • Segment revenue: JPY 349.6 bn (+11.1% YoY), Non-GAAP OI: JPY 24.2 bn (+14.5% YoY), achieving growth in both revenue and profit • Domestic EC*1 GMS: JPY 1,714.1 bn (+14.5% YoY). In addition to the high growth of Rakuten Ichiba due to the brought-forward demand fo
Slide 4: Executive Summary: FinTech
Executive Summary FinTech • Segment revenue: JPY 250.5 bn (+20.3% YoY), Non-GAAP OI: JPY 55.2 bn (+37.9% YoY), resulting in increased revenue and profit. Each business saw continued growth in their customer base and GTV, driving revenue growth across all businesses • Rakuten Card: Shopping GTV incre
Slide 5: Executive Summary: Mobile
Executive Summary Mobile • Segment revenue: JPY 118.7 bn (+12.0% YoY), Non-GAAP OI JPY -38.6 bn (+JPY 10.1 bn YoY) • Rakuten Mobile, Inc.: Due to an increase in the number of subscribers and an improvement in ARPU, Revenue*1 was JPY 95.2 bn (+31.2% YoY), Non-GAAP OI*1 was JPY -37.2 bn (+JPY 13.4 bn
Slide 6: Appendix Contents
Appendix Contents 1 Ecosystem KPIs ◆ Number of Monthly Active Users and Ratio of Users of Two or More Services ◆ Membership Value ◆ Global GTV 2 Consolidated Financial Results ◆ Consolidated Financial Results Summary ◆ Revenue, Non-GAAP Operating Income and EBITDA Breakdown ◆ Overview of Consolidate
Slide 7: 1. Ecosystem KPIs
1. Ecosystem KPIs 7
Slide 8: Rakuten Ecosystem Service Line-Up (Excerpt)
Rakuten Ecosystem Service Line-Up (Excerpt) ■ Established leading positions in many markets. Highest cross-use rate among MNO carriers* Internet Services Segment FinTech Segment Mobile Segment Domestic EC International Payment Insurance Securities Bank Mobile (Rakuten Ichiba) (Rakuten Rewards) (Raku
Slide 9: Number of Monthly Active Users and Ratio of Users of Two or More Services
Number of Monthly Active Users and Ratio of Users of Two or More Services Monthly Active User Growth in Japan Ratio of Users of Two or More Services*2 44.54 mm 76.9 % + 4.2 % YoY*1 + 0.3 pt YoY*3 Sep-20 Sep-21 Sep-22 Sep-23 Sep-24 Sep-25 Sep-20 Sep-21 Sep-22 Sep-23 Sep-24 Sep-25 *1: Comparison of mo
Slide 10: Membership Value
Membership Value*1 ■ Increase in membership value driven by strong demand for Hometown Tax donations on Rakuten Ichiba ahead of changes in rules for granting of points, growth in active users for Rakuten Securities driven by an improved market environment, and expansion of interest income at Rakuten
Slide 11: Total Global GTV
Total Global GTV*1*2 (JPY tn) +10.5%*3 YoY LTM Total Global GTV 11.1 12.3 48.1 tn JPY 10.1 Q3/23 Q3/24 Q3/25 *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 GTV + Rakuten Rewards (Ebates)
Slide 12: 2. Consolidated Financial Results
2. Consolidated Financial Results 12
Slide 13: Consolidated Financial Results Summary (1)
Consolidated Financial Results Summary (1) (JPY bn, rounded) Q3/24 Q3/25 YoY Consolidated Revenue 566.7 628.6 +10.9% Internet Services Segment 314.6 349.6 +11.1% FinTech Segment 208.2 250.5 +20.3% Mobile Segment 106.0 118.7 +12.0% Adjustments -62.1 -90.3 -28.2 Non-GAAP Operating Income (Loss) 12.3 3
Slide 14: Consolidated Financial Results Summary (2)
Consolidated Financial Results Summary (2) (JPY bn, rounded) Q3/24 Q3/25 YoY Non-GAAP Operating Income 12.3 38.6 +212.8% Amortization of Intangible Assets -1.7 -1.3 +0.4 Share Based Compensation -4.1 -3.9 +0.1 One-off Items -6.1 -25.4 -19.4 IFRS Operating Income 0.5 8.0 +1,379.7% Financial Income (E
Slide 15: Revenue Breakdown
Revenue Breakdown*1*2 (JPY bn) +10.9% YoY 12.7 42.3 628.6 -28.2 8.9 2.0 24.2 566.7 International Other Internet FinTech Mobile Consolidated Q3/24 Domestic EC Q3/25 Business Unit Services Segment Segment Adjustment Internet Services Segment *1: From Q4/24, International Business Unit and Minority Inv
Slide 16: Non-GAAP Operating Income Breakdown
Non-GAAP Operating Income Breakdown*1*2 (JPY bn) +212.8% YoY 10.1 38.6 -2.1 15.2 8.5 0.3 12.3 -5.7 -0.1 International Minority Other Internet FinTech Mobile Consolidated Q3/24 Domestic EC Q3/25 Business Unit Investment Services Segment Segment Adjustment Internet Services Segment *1: From Q4/24, Int
Slide 17: EBITDA Breakdown
EBITDA Breakdown*1*2*3 (JPY bn) +28.8% YoY 16.4 118.7 16.6 -9.0 8.0 0.3 92.2 -5.7 0.0 International Minority Other Internet FinTech Mobile Consolidated Q3/24 Domestic EC Q3/25 Business Unit Investment Services Segment Segment Adjustment Internet Services Segment *1: From Q4/24, International Busines
Slide 18: Consolidated and Major Subsidiaries' Balance Sheets (1) – As of Sep 2025
Consolidated and Major Subsidiaries’ Balance Sheets (1) – As of Sep 2025*1*2 ※Non-consolidated balance sheets include internal transactions (JPY bn) *3 *4 Consolidated Rakuten Group, Inc. Rakuten Mobile, Inc. Total Assets Total Assets Total Assets *1: Rakuten Group, Inc. and Rakuten Mobile, Inc. are
Slide 19: Consolidated and Major Subsidiaries' Balance Sheets (2) – As of Sep 2025
Consolidated and Major Subsidiaries’ Balance Sheets (2) – As of Sep 2025*1*2 (JPY bn) *3 Rakuten Bank, Ltd. Rakuten Card Co., Ltd. Rakuten Securities, Inc. Total Assets Total Assets Total Assets *1: Based on IFRS non-consolidated balance sheets. *2: Bonds and borrowings include straight corporate bo
Slide 20: Consolidated and Major Subsidiaries' Balance Sheets (1) – As of Sep 2025
Consolidated and Major Subsidiaries’ Balance Sheets (1) – As of Sep 2025 (JPY bn, rounded) Q2/25 Q3/25 QoQ Rakuten Group, Inc. (Consolidated) Total Assets 26,277.6 26,972.7 +2.6% *1 Cash and Equivalents 5,379.2 5,327.3 -1.0% Financial Assets for Securities Business 5,582.4 5,663.0 +1.4% Investment S
Slide 21: Consolidated and Major Subsidiaries' Balance Sheets (2) – As of Sep 2025
Consolidated and Major Subsidiaries’ Balance Sheets (2) – As of Sep 2025*1*2 (JPY bn, rounded) Q2/25 Q3/25 QoQ Rakuten Group, Inc. (Non-consolidated) *Including internal transactions Total Assets 4,681.5 4,887.5 +4.4% *3 Cash and Cash Equivalents, etc. 172.8 303.3 +75.5% Other Assets 4,508.7 4,584.2
Slide 22: 3. Segment Results and KPIs
3. Segment Results and KPIs 22
Slide 23: Rakuten Group Organizational Chart and Segment Correspondence Chart
Rakuten Group Organizational Chart and Segment Correspondence Chart □Internet Services Segment □FinTech Segment Rakuten Group, Inc. □Mobile Segment 85.01%*1 49.27%*2 Listed on TSE in Apr. 2023 Other domestic Rakuten Card Co., Rakuten Securities Rakuten Insurance Rakuten Mobile, Inc. Rakuten Bank, Lt
Slide 24: Segment Management Structure
Segment Management Structure Internet Services FinTech Mobile Segment Leader Segment Leader Segment Leader Hiroshi Mikitani Seiichiro Sonoda Kentaro Hyakuno Kazuhiro Suzuki Representative Director, President of FinTech COO Representative Director and Chairman, President and Group Company President o
Slide 25: Internet Services Segment Structure
Internet Services Segment Structure* Internet Services Segment Domestic EC ◼ Rakuten Ichiba Core Businesses ◼ Rakuten Travel ◼ Rakuten Rebates ◼ Rakuten GORA ◼ Ad Related Business etc. Growth Investment ◼ Rakuten Super Logistics Businesses ◼ Rakuten Mart ◼ Rakuten Books ◼ Rakuten24 ◼ Rakuten Fashion
Slide 26: FinTech Segment Structure
FinTech Segment Structure FinTech Segment Rakuten Card ◼ Rakuten Card Rakuten Bank ◼ Rakuten Bank Rakuten ◼ Rakuten Securities and Overseas Subsidiaries Securities ◼ Rakuten Life Insurance Insurance ◼ Rakuten General Insurance Business ◼ Rakuten Insurance Planning etc. ◼ Rakuten Pay Rakuten ◼ Rakute
Slide 27: Mobile Segment Structure
Mobile Segment Structure Mobile Segment Rakuten ◼ Rakuten Mobile Mobile ◼ Rakuten Energy (Rakuten Electricity, Rakuten Gas) Rakuten ◼ Rakuten Symphony Symphony Others ◼ Rakuten Communications etc. 27
Slide 28: Internet Services Segment
Internet Services Segment 28
Slide 29: Internet Services Segment Financial Results
Internet Services Segment Financial Results*1*2 Non-GAAP Q3/25 (JPY bn) Revenue YoY YoY Operating Income *2 Domestic EC 265.5 +10.0% 33.9 +33.6% *3 Core Businesses 189.1 +15.7% 42.7 +13.4% *3 Growth Investment Businesses 76.4 -1.9% -8.8 +3.5 *1*2*4 International Business Unit 73.0 +13.8% 0.6 +93.0%
Slide 30: Internet Services Segment Revenue Breakdown
Internet Services Segment Revenue Breakdown*1*2*3 (JPY bn) +11.1% YoY 8.9 2.0 349.6 25.7 314.6 -1.5 Growth Investment International Other Internet Q3/24 Core Businesses Businesses Business Unit Services Q3/25 Domestic EC *1: From Q4/24, International Business Unit and Minority Investment are disclos
Slide 31: Internet Services Segment Non-GAAP Operating Income Breakdown
Internet Services Segment Non-GAAP Operating Income Breakdown*1*2*3 (JPY bn) +14.5% YoY 2.5 0.3 5.1 0.9 24.2 21.2 -5.7 -0.1 Growth Investment Logistics International Minority Other Internet Q3/24 Core Businesses Businesses Business Business Unit Investment Services Q3/25 (excl. Logistics Business) D
Slide 32: Domestic EC GMS
Internet Services Segment Domestic EC International BU Minority Investment Domestic EC GMS *1*2*3*4 ■ High growth achieved on demand brought forward by changes to Hometown Tax point allocation rule (from October). Take rate declined due to changes in the composition of GMS, etc., but we expect this
Slide 33: Domestic EC Revenue
Internet Services Segment Domestic EC International BU Minority Investment Domestic EC Revenue *1*2 ■ Core Businesses growth is being driven by strong growth at Rakuten Ichiba from a front-loaded demand by changes to Hometown Tax rule, and by the Travel business continued growth ■ In the Growth Inve
Slide 34: Domestic EC Operating Income
Internet Services Segment Domestic EC International BU Minority Investment Domestic EC Operating Income *1*2 ■ Core Businesses profits increased due to higher revenues from Rakuten Ichiba and Rakuten Travel ■ In the Growth Investment Businesses, the Logistics, which implemented rate revisions, contr
Slide 35: Overview of Hometown Tax
Internet Services Segment Domestic EC International BU Minority Investment Overview of Hometown Tax ■ Hometown Tax is a system where people can make donations to support local governments, receive a tax deduction, and receive a gift in return ■ Hometown Tax donations are increasing year by year Hist
Slide 36: Growth of Online Shopping from a Macroeconomic Perspective
Internet Services Segment Domestic EC International BU Minority Investment Growth of Online Shopping from a Macroeconomic Perspective ■ The rise in online shopping usage triggered by the spread of COVID-19 has continued even as the economy normalized ■ Online shopping spending remains strong, despit
Slide 37: List of Logistics Centers
Internet Services Segment Domestic EC International BU Minority Investment List of Logistics Centers JP Rakuten Logistics Rakuten Mart Logistics Centers Yao Opened in 2023 RSL* Kawanishi Opened in 2012 Rakuten 24 Hirakata Opened in 2019 RSL* Nanko Ibaraki Opened in 2016 Narashino Opened in 2022 Fuku
Slide 38: International Business Unit Revenue
Internet Services Segment Domestic EC International BU Minority Investment International Business Unit Revenue *1*2 ■ Rakuten Rewards revenue flat on cautious stance among US retailers ■ Meanwhile, strong sales of the Rakuten Kobo color devices and content, as well as communications and ad revenue a
Slide 39: International Business Unit Operating Income
Internet Services Segment Domestic EC International BU Minority Investment International Business Unit Operating Income *1*2 ■ Rakuten Rewards’ operating profit growth was sluggish due to the impact of the macro environment ■ Meanwhile, the strong performance of Rakuten Kobo’s color devices and cont
Slide 40: Global Customer Base
Internet Services Segment Domestic EC International BU Minority Investment Global Customer Base ■ Global customer base of Rakuten services are steadily expanding (Rakuten Rewards) GMS Total Users* Registered Users Registered Users Registered Users Q3/25 (As of the end of Sep-25) (As of the end of Se
Slide 41: Rakuten Capital Investment Performance
Internet Services Segment Rakuten Capital Investment Performance *1 *2 Domestic EC International BU Minority Investment (As of Sep 2025) (JPY bn) 287.9 Gain +154bn 70.3 Remaining (Unrealized) ROI*3 +115% IRR*3 +17.8% 133.6 217.6 Exit Amount (Realized) Int’l Inv. Remaining + Exited (2012~2025 Q3) *1:
Slide 42: Minority Investment Portfolio
Internet Services Segment Domestic EC International BU Minority Investment Minority Investment Portfolio Remaining Exited*3 Number of *1 Investments : 48 investments 47 investments E-Commerce Mobile*2 Ride Sharing Healthcare (Partial) SaaS (Partial) Outside Rakuten Capital*4 Sustainability AI/Other
Slide 43: FinTech Segment
FinTech Segment 43
Slide 44: FinTech Segment Financial Results
FinTech Segment Financial Results*1*2*3*4 Non-GAAP Q3/25 (JPY bn) Revenue YoY Operating Income YoY Rakuten Card 99.2 +16.3% 19.1 +15.2% Rakuten Bank 55.1 +32.7% 25.0 +46.5% Rakuten Securities 41.7 +24.2% 14.0 +51.2% Insurance Business 22.2 +8.7% -0.3 -0.4 Rakuten Payment 26.5 +14.4% 2.6 +78.8% Other
Slide 45: FinTech Segment Revenue Breakdown
FinTech Segment Revenue Breakdown* (JPY bn) +20.3% YoY 1.8 3.3 1.5 250.5 8.1 13.6 13.9 208.2 Rakuten Rakuten Rakuten Insurance Rakuten Q3/24 Others Q3/25 Card Bank Securities Business Payment *From Q3/25, Rakuten Securities’ off-shore subsidiaries were transferred from Rakuten Securities to Others.
Slide 46: FinTech Segment Non-GAAP Operating Income Breakdown
FinTech Segment Non-GAAP Operating Income Breakdown* (JPY bn) +37.9% YoY 4.8 1.1 55.2 7.9 -0.4 -0.8 2.5 40.0 Rakuten Rakuten Rakuten Insurance Rakuten Q3/24 Others Q3/25 Card Bank Securities Business Payment *From Q3/25, Rakuten Securities’ off-shore subsidiaries were transferred from Rakuten Securi
Slide 47: Rakuten Card Financial Results and KPI
FinTech Segment Card Bank Securities Insurance Payment Rakuten Card Financial Results and KPI ■ Continuous increase in shopping GTV due to expansion of customer base and an increase in average spend per customer contributed to revenue growth ■ Although profits declined due to an increase in interest
Slide 48: Rakuten Bank Financial Results and KPI
FinTech Segment Card Bank Securities Insurance Payment Rakuten Bank Financial Results and KPI ■ An increase in the number of accounts and the progress in converting accounts into main accounts led to an expansion in deposit balances ■ With a growth in middle-risk assets and Bank of Japan's policy ra
Slide 49: Rakuten Securities Financial Results and KPIs
FinTech Segment Card Bank Securities Insurance Payment Rakuten Securities Financial Results and KPIs ■ Against a favorable market environment, the number of general accounts expanded. Growth in commission income and financial income led to a record-high quarterly revenue ■ By increasing revenue and
Slide 50: Insurance Business Financial Results
FinTech Segment Card Bank Securities Insurance Payment Insurance Business Financial Results ■ Both life insurance, particularly medical insurance, and general insurance, especially automobile insurance, continued to sell well, leading to increased revenue for both ■ General insurance experienced tem
Slide 51: Rakuten Payment Financial Results
FinTech Segment Card Bank Securities Insurance Payment Rakuten Payment Financial Results ■ Rakuten Pay app continued to see an increase in users, leading to a sustained expansion in GTV ■ In addition to revenue growth, cost was managed well, resulting in continued growth in operating income Revenue
Slide 52: Mobile Segment
Mobile Segment 52
Slide 53: Mobile Segment Financial Results
Mobile Segment Financial Results Non-GAAP Q3/25 (JPY bn) Revenue YoY Operating Income YoY *1 Rakuten Mobile 95.2 +31.2% -37.2 +13.4 *2 MNO 53.9 +24.7% *2*3 MVNO 1.2 -36.2% Device and Accessory 17.0 +30.3% *2 Other Mobile (including Rakuten Hikari, etc.) 11.7 -18.1% *4 Other Businesses 11.3 +11.3 Rak
Slide 54: Mobile Segment Revenue Breakdown
Mobile Segment Revenue Breakdown*1*2 (JPY bn) +12.0% YoY 22.7 5.0 118.7 106.0 -15.0 Q3/24 Rakuten Mobile Rakuten Symphony Others Q3/25 *1: From February 2025, Rakuten Energy, Inc. was absorbed into Rakuten Mobile, Inc. *2: From April 2025, part of the Rakuten Communications business was absorbed int
Slide 55: Mobile Segment Non-GAAP Operating Income/Loss Breakdown
Mobile Segment Non-GAAP Operating Income/Loss Breakdown*1*2 (JPY bn) Q3/24 Rakuten Mobile Others Q3/25 13.4 -3.3 -38.6 -48.7 JPY +10.1 bn YoY *1: From February 2025, Rakuten Energy, Inc. was absorbed into Rakuten Mobile, Inc. *2: From April 2025, part of the Rakuten Communications business was absor
Slide 56: Rakuten Mobile, Inc. Quarterly Financial Results
Mobile Segment Rakuten Mobile Rakuten Symphony Rakuten Mobile, Inc. Quarterly Financial Results Revenue*1 (JPY bn) Non-GAAP Operating Income*1*2 (JPY bn) EBITDA*1*2*3 (JPY bn) 95 91 87 82 8 11 Q3/24 Q4/24 Q1/25 Q2/25 Q3/25 Q3/24 Q4/24 Q1/25 Q2/25 Q3/25 8 73 12 15 14 13 14 17 16 18 18 13 8 -39 -37 6
Slide 57: Rakuten Mobile, Inc. Operating Cost and Capital Expenditure
Mobile Segment Rakuten Mobile Rakuten Symphony Rakuten Mobile, Inc. Operating Cost and Capital Expenditure ■ Operating expenses remain at a stable level, pursuing operational efficiency through measures such as AI-driven RAN control ■ As for Capex, a portion of the annual budget of JPY 150 bn is now
Slide 58: Rakuten Mobile MNO Subscribers (B2C+B2B)
Mobile Segment Rakuten Mobile Rakuten Symphony Rakuten Mobile MNO Subscribers (B2C+B2B) *1 ■ Increase in line activations and decrease in churn rate led to QoQ growth of the number of subscribers (mm subscribers) 7.59 8.58 0.13 8.17 *2 ■ Subscribers transferred to BCP 7.78 7.46 ■ MNO subscribers 7.2
Slide 59: Rakuten Mobile MNO Churn (B2C+B2B)
Mobile Segment Rakuten Mobile Rakuten Symphony Rakuten Mobile MNO Churn (B2C+B2B) ■ Churn rate has continued to decline. Relative attractiveness of Rakuten Mobile improving in a macroeconomic environment with persistent inflation 5.41% 4.64% Gross 3.82% MNO 4.67% 3.11% Churn 3.83% 2.38% 2.52% 2.53%
Slide 60: ARPU
Mobile Segment Rakuten Mobile Rakuten Symphony ARPU *1 ■ ARPU increased by JPY 72 YoY to JPY 2,873, primarily driven by higher Data ARPU on increased average data usage in B2C ■ Net ARPU, which is a benchmark for becoming profitable, increased by JPY 110 YoY 2,801 2,857 2,827 2,861 2,873 (JPY) 746 7
Slide 61: ARPU Definition
Mobile Segment Rakuten Mobile Rakuten Symphony ARPU Definition ■ Net ARPU x MNO Subscribers*1 should be compared to EBITDA cost to analyze EBITDA breakeven In addition to Data, Calls, Options and Others, revenue uplift effect of Rakuten Mobile ARPU MNO subscribers is now added to the calculation (di
Slide 62: Rakuten Mobile MNO Average Data Volume (B2C)
Mobile Segment Rakuten Mobile Rakuten Symphony Rakuten Mobile MNO Average Data Volume (B2C) ■ Average daily data usage in Q3 reached a record high of 1.09GB Averaged data consumption volume per day (GB) 1.09 1.02 1.00 0.98 0.94 0.81 0.76 0.77 0.73 0.62 0.55 0.56 0.46 0.36 0.33 Q1/22 Q2/22 Q3/22 Q4/2
Slide 63: Rakuten Mobile Owned and Roaming Frequency Bands
Mobile Segment Rakuten Mobile Rakuten Symphony Rakuten Mobile Owned and Roaming Frequency Bands Spectrum Status Bandwidth 40MHz 1.7GHz Allocated Up: 1,730 – 1,750MHz Down: 1,825 - 1,845MHz 6MHz Allocated in October 2023 700MHz Up: 715 - 718MHz 4G Started commercial use in June 2024 Down: 770 - 773MH
Slide 64: Rakuten Symphony Revenue
Mobile Segment Rakuten Mobile Rakuten Symphony Rakuten Symphony Revenue ■ Revenue trends fluctuate due to timing of delivery to customer, etc. (USD mm) 300 231 Started full-fledged delivery for 1&1 161 Entered into 134 partnership with 1&1 118 121 to build mobile 108 network 88 90 84 85 91 76 72 61
Slide 65: Ad Business
Ad Business 65
Slide 66: Ad Business Financial Results
Ad Business*1 Financial Results Revenue*2 (JPY bn) For further growth +13.5% YoY 60.4 53.2 Group Data Services • Utilizing high-quality online and offline Rakuten Ecosystem data • Innovating ad business models and creating next- generation ad experiences using AI technology Q3/24 Q3/25 • Developing
Slide 67: 4. Finance
4. Finance 67
Slide 68: How Currency Swaps Work
How Currency Swaps Work • A cross-currency swap is a contract in which principal and interest denominated in different currencies are exchanged for a specified period of time Overview • Exchange of principal and interest between different currencies • Both companies have the advantage of being able
Slide 69: Subordinated Bond Flow (Hedge Accounting Applied)
Subordinated Bond Flow (Hedge Accounting Applied) • If the subordinated bonds are recognized as liabilities (recorded as liabilities), hedge accounting is applied. Quarterly change in the fair value of the currency swap (derivative gains and losses) will offset change in the Overview exchange rate v
Slide 70: Perpetual Subordinated Bond Flow (Hedge Accounting is Not Applied)
Perpetual Subordinated Bond Flow (Hedge Accounting is Not Applied) • If perpetual subordinated bonds are recognized as capital (recorded as net assets), hedge accounting cannot be applied. Quarterly change in the market value of currency swaps (derivative gains and losses) will Overview be recognize
Slide 71: Sensitivity Analysis of Derivative Gains and Losses on Currency Swaps
Sensitivity Analysis of Derivative Gains and Losses on Currency Swaps ■ Rakuten entered into currency swap agreements for the principal and interest of foreign currency-denominated perpetual subordinated bonds between U.S. dollars, euros, and Japanese yen ■ The valuation of the currency swaps is imp
Slide 72: Cash Conversion Cycle Improvements
Cash Conversion Cycle Improvements ■ Continuing efforts to optimize working capital to reduce leverage ■ Already achieved our goal of generating JPY 200 bn cumulative cash from Non-FinTech businesses by end of FY2025 Further upside Cumulative total JPY 234.7 bn Achieved cash generation of JPY 234.7
Slide 73: Diversifying Financing Sources including Equity, Asset Financing and Bonds
Diversifying Financing Sources including Equity, Asset Financing and Bonds 2021 2022 2023 2024 2025 ●Public offering and ●Strengthening of Strategic Transaction Third-party allotments involving Rakuten Securities ●Strategic Transaction JPY 296 bn JPY 87 bn ●Strategic Transaction ●Third-party allotme
Slide 74: Rakuten Mobile Funding Flow
Rakuten Mobile Funding Flow Dividends, management fees, FinTech etc. Rakuten Mobile, Inc. FY2024: Companies JPY 52.6 bn raised JPY 170 bn through lease financing in Q3/24 Independently regulated and funded Equity/Loan Rakuten Group, Inc. Dividends, Rakuten Mobile, Inc. management fees, FCF from Inte
Slide 75: Forward-looking statements disclaimer
This presentation includes forward-looking statements that 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 diffe