Rakuten Group, Inc. · TSE:4755
Rakuten — FY2024 Earnings Presentation
103 slides from Rakuten's earnings presentation, Feb 14, 2025
Slide 1: FY2024 Fourth Quarter and Full Year Consolidated Financial Results Appendix
FY2024 Fourth Quarter and Full Year Consolidated Financial Results Appendix February 14, 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 adjuste
Slide 2: Executive Summary
Executive Summary Consolidated Results • Revenue increased across all segments, including Internet Services, FinTech, and Mobile, resulting in record-high full-year revenue of JPY 2.28 tn for FY 2024 (+10.0% YoY) • In addition to revenue growth, significant profit improvements in Rakuten Mobile and
Slide 3: Executive Summary
Executive Summary Internet Services • Segment revenue: JPY 1.28 tn (+5.8% YoY), Non-GAAP OI*1 : JPY 85.1 bn (+29.8% YoY), achieving growth in both revenue and profit • Domestic EC GMS: JPY 5.96 tn (-1.5% YoY), impacted by factors such as the high YoY comparison hurdle for Rakuten Travel due to the p
Slide 4: Executive Summary
Executive Summary FinTech • Segment revenue: JPY 820.4 bn (+13.1% YoY), Non-GAAP operating income*1: JPY 153.4 bn (+37.9% YoY). The customer base and transaction value expanded in each business throughout the year. • Rakuten Card: Shopping GTV grew on higher card membership and average customer spen
Slide 5: Executive Summary
Executive Summary Mobile • Segment revenue: JPY 440.7 bn (+20.9% YoY), Non-GAAP operating loss*1 JPY 208.9 bn (an improvement of JPY 105.6 bn YoY) • Rakuten Mobile, Inc.: Revenue JPY 283.9 bn (+26.2% YoY) due to growth in the number of subscribers and an increase in ARPU. Coupled with the effects of
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 or Loss, and EBITDA Breakdown Overview of Consolid
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 Internet Services Overseas Businesses Payment Insurance Securities Bank Mobile (Rakuten Ichiba) (Rakuten Rewa
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 44.10 mm 77.4 % + 6.2 % YoY*1 + 0.5 pt YoY*3 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 *1: Comparison of mo
Slide 10: Membership Value
Membership Value*1 Membership value increased due increase in number of users at Rakuten Bank, etc., as well as improved productivity at Rakuten Ichiba, Rakuten 24, and other key businesses +4.3% (JPY tn) YoY 0.6 0.1 0.0 9.6 9.2 -0.3 Membership Value Target JPY 10tn Q4/23 Number of Cross Use ( LTV *
Slide 11: Q4/24 & FY2024 Global GTV
Q4/24 & FY2024 Global GTV*1*2 Q4/24 Global GTV (JPY tn) FY2024 Global GTV (JPY tn) +13.0% *3 +11.1% *3 YoY YoY 12.6 44.8 11.1 40.0 10.0 33.8 Q4/22 Q4/23 Q4/24 FY2022 FY2023 FY2024 *1: Global Gross Transaction Value = Domestic E-Commerce GMS + Credit Card GTV + Rakuten Edy GTV + Rakuten Pay GTV + Rak
Slide 12: 2. Consolidated Financial Results
2. Consolidated Financial Results 12
Slide 13: Q4/24 Consolidated Financial Results Summary (1)
Q4/24 Consolidated Financial Results Summary (1) (JPY bn, rounded) Q4/23 Q4/24 YoY Consolidated Revenue 580.1 661.6 +14.1% Internet Services Segment 345.3 377.9 +9.4% FinTech Segment 191.6 216.0 +12.8% Mobile Segment 99.5 139.9 +40.7% Adjustments -56.3 -72.3 -16.0 Non-GAAP Operating Income (Loss)*1*
Slide 14: Q4/24 Consolidated Financial Results Summary (2)
Q4/24 Consolidated Financial Results Summary (2) (JPY bn, rounded) Q4/23 Q4/24 YoY Non-GAAP Operating Income (Loss) -3.6 32.0 +35.6 Amortization of Intangible Assets -7.1 -1.4 +5.7 Stock Based Compensation -3.3 -4.2 -0.8 One-Off Items -19.3 77.6 +96.9 IFRS Operating Income (Loss) -33.3 104.0 +137.3
Slide 15: FY2024 Consolidated Financial Results Summary (1)
FY2024 Consolidated Financial Results Summary (1)*1 (JPY bn, rounded) FY2023 FY2024 YoY Consolidated Revenue 2,071.3 2,279.2 +10.0% Internet Services Segment 1,212.3 1,282.1 +5.8% FinTech Segment 725.2 820.4 +13.1% Mobile Segment 364.6 440.7 +20.9% Adjustments -230.7 -264.0 -33.3 Non-GAAP Operating
Slide 16: FY2024 Consolidated Financial Results Summary (2)
FY2024 Consolidated Financial Results Summary (2) (JPY bn, rounded) FY2023 FY2024 YoY Non-GAAP Operating Income (Loss) -153.0 7.0 +160.1 Amortization of Intangible Assets -13.6 -6.8 +6.7 Stock Based Compensation -14.3 -15.9 -1.6 One-Off Items -31.9 68.7 +100.6 IFRS Operating Income (Loss) -212.9 53.
Slide 17: Q4/24 Revenue Breakdown
Q4/24 Revenue Breakdown*1*2 (JPY bn) +14.1% YoY 40.4 661.6 24.5 -16.0 23.8 9.0 -0.2 580.1 International Other Internet FinTech Mobile Consolidated Q4/23 Domestic EC Q4/24 Business Unit Services Segment Segment Adjustment Internet Services Segment *1: From Q4/24, International Business Unit and Minor
Slide 18: FY2024 Revenue Breakdown
*1*2*3 FY2024 Revenue Breakdown (JPY bn) +10.0% YoY 76.1 2,279.2 95.3 -33.3 33.4 37.0 -0.6 2,071.3 International Other Internet FinTech Mobile Consolidated FY2023 Domestic EC FY2024 Business Unit Services Segment Segment Adjustment Internet Services Segment *1: From Q3/23, Rakuten Pay (online paymen
Slide 19: Q4/24 Non-GAAP Operating Income (Loss) Breakdown
Q4/24 Non-GAAP Operating Income (Loss) Breakdown*1*2*3*4 (JPY bn) JPY +35.6 bn YoY 23.1 32.0 -2.7 6.8 2.6 0.8 6.4 -1.4 -3.6 International Minority Other Internet FinTech Mobile Consolidated Q4/23 Domestic EC Q4/24 Business Unit Investment Services Segment Segment Adjustment Internet Services Segment
Slide 20: FY2024 Non-GAAP Operating Income (Loss) Breakdown
FY2024 Non-GAAP Operating Income (Loss) Breakdown*1*2*3*4*5 (JPY bn) JPY +160.1 bn YoY 105.6 7.0 -7.3 42.2 6.9 12.7 4.7 -4.8 -153.0 International Minority Other Internet FinTech Mobile Consolidated FY2023 Domestic EC FY2024 Business Unit Investment Services Segment Segment Adjustment Internet Servic
Slide 21: Q4/24 EBITDA Breakdown
Q4/24 EBITDA Breakdown*1*2*3*4*5 (JPY bn) +51.5% YoY 26.9 114.3 -5.3 8.7 7.2 2.0 0.8 75.5 -1.5 International Minority Other Internet FinTech Mobile Consolidated Q4/23 Domestic EC Q4/24 Business Unit Investment Services Segment Segment Adjustment Internet Services Segment *1: From Q3/24, Mobile Ecosy
Slide 22: FY2024 EBITDA Breakdown
FY2024 EBITDA Breakdown*1*2*3*4*5*6 (JPY bn) +120.0% YoY 119.9 326.0 -10.1 47.6 11.6 6.9 148.2 6.5 -4.5 International Minority Other Internet FinTech Mobile Consolidated FY2023 Domestic EC FY2024 Business Unit Investment Services Segment Segment Adjustment Internet Services Segment *1: From Q3/23, R
Slide 23: Consolidated and Major Subsidiaries' Balance Sheets – As of Dec 2024
Consolidated and Major Subsidiaries’ Balance Sheets – As of Dec 2024*1*2 Non-consolidated balance sheets include internal transactions (JPY bn) Consolidated *4 Rakuten Group, Inc.*3 Rakuten Mobile, Inc. Total Assets Total Assets Total Assets *5 Rakuten Bank, Ltd. Rakuten Card Co., Ltd. Rakuten Secur
Slide 24: Consolidated and Major Subsidiaries' Balance Sheets (1) – As of Dec 2024
Consolidated and Major Subsidiaries’ Balance Sheets (1) – As of Dec 2024 (JPY bn, rounded) Q3/24 Q4/24 QoQ Rakuten Group, Inc. (Consolidated) Total Assets 24,879.7 26,514.7 +6.6% *1 Cash and Equivalents 5,886.9 6,170.9 +4.8% Financial Assets for Securities Business 4,878.4 5,212,0 +6.8% Investment S
Slide 25: Consolidated and Major Subsidiaries' Balance Sheets (2) – As of Dec 2024
Consolidated and Major Subsidiaries’ Balance Sheets (2) – As of Dec 2024*1*2 (JPY bn, rounded) Q3/24 Q4/24 QoQ Rakuten Group, Inc. (Non-consolidated) *Including internal transactions Total Assets 4,870.5 5,417.9 +11.2% *3 Cash and Cash Equivalents, etc. 679.9 750.0 +10.3% Other Assets 4,190.6 4,667.
Slide 26: 3. Segment Results and KPIs
3. Segment Results and KPIs 26
Slide 27: 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% 49.27%*2 Listed on TSE in Apr. 2023 Other domestic Rakuten Card Co., Rakuten Securities Rakuten Insurance Rakuten Mobile, Inc. Rakuten Bank, Ltd. an
Slide 28: Segment Management System
Segment Management System*1 Internet Services FinTech Mobile Segment Leader Segment Leader Segment Leader *2 Hiroshi Mikitani Masayuki Hosaka Kentaro Hyakuno Kazuhiro Suzuki Representative Director, President of FinTech COO Representative Director and Chairman, President and Group Company President
Slide 29: Internet Services Segment Structure
Internet Services Segment Structure* Internet Services Segment Domestic EC ◼ Rakuten Ichiba Core Businesses ◼ Rakuten Travel ◼ Rakuten Rebates ◼ Rakuten BIC ◼ Rakuten GORA etc. Growth Investment ◼ Rakuten Super Logistics Businesses ◼ Rakuten Mart ◼ Rakuten Rakuma ◼ Rakuten Beauty ◼ Rakuten Fashion e
Slide 30: 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 31: Mobile Segment Structure
Mobile Segment Structure Mobile Segment Rakuten ◼ Rakuten Mobile Mobile Rakuten ◼ Rakuten Symphony Symphony Rakuten ◼ Rakuten Electricity Energy ◼ Rakuten Gas etc. Others ◼ Rakuten Communications etc. 31
Slide 32: Internet Services Segment
Internet Services Segment 32
Slide 33: Q4/24 Internet Services Segment Financial Results
Q4/24 Internet Services Segment Financial Results*1*2*3 Non-GAAP Q4/24 (JPY bn) Revenue YoY YoY Operating Income Domestic EC 262.8 +10.0% 39.0 +19.7% Core Businesses 229.5 +9.5% 44.2 +6.0% Growth Investment Businesses 33.3 +13.0% -5.2 +3.9 *2*4*5 International Business Unit 95.8 +10.3% 5.8 +78.7% *6
Slide 34: FY2024 Internet Services Segment Financial Results
FY2024 Internet Services Segment Financial Results*1*2*3*4 Non-GAAP FY2024 (JPY bn) Revenue YoY YoY Operating Income Domestic EC 922.6 +4.2% 107.2 +4.6% *1 Core Businesses 796.9 +3.2% 139.9 -2.3% Growth Investment Businesses 125.7 +10.9% -32.7 +8.0 *3*5*6 International Business Unit 283.1 +13.4% 6.7
Slide 35: Q4/24 Internet Services Segment Revenue Breakdown
Q4/24 Internet Services Segment Revenue Breakdown*1*2 (JPY bn) +9.4% YoY 3.8 9.0 377.9 20.0 -0.2 345.3 Growth Investment International Other Internet Q4/23 Core Businesses Businesses Business Unit Services Q4/24 Domestic EC *1: From Q4/24, International Business Unit and Minority Investment are disc
Slide 36: FY2024 Internet Services Segment Revenue Breakdown
FY2024 Internet Services Segment Revenue Breakdown*1*2*3 (JPY bn) +5.8% YoY 33.4 1,282.1 24.6 12.4 1,212.3 -0.6 Growth Investment International Other Internet FY2023 Core Businesses Businesses Business Unit Services FY2024 Domestic EC *1: From Q3/23, Rakuten Pay (online payment) business and Rakuten
Slide 37: Q4/24 Internet Services Segment Non-GAAP Operating Income Breakdown
Q4/24 Internet Services Segment Non-GAAP Operating Income Breakdown *1*2*3*4 (JPY bn) +28.4% YoY 2.6 0.8 37.7 3.6 0.3 -1.4 2.5 29.4 Growth Investment Logistic International Minority Other Internet Q4/23 Core Businesses Businesses Business Business Unit Investment Services Q4/24 (excl. Logistic Busin
Slide 38: FY2024 Internet Services Segment Non-GAAP Operating Income Breakdown
FY2024 Internet Services Segment Non-GAAP Operating Income Breakdown *1*2*3*4*5 (JPY bn) +29.8% YoY 6.9 12.7 85.1 -4.8 7.0 1.0 65.6 -3.3 Growth Investment Logistic International Minority Other Internet FY2023 Core Businesses Businesses Business Business Unit Investment Services FY2024 (excl. Logisti
Slide 39: Q4/24 Domestic E-Commerce GMS
Internet Services Segment Domestic EC International BU Minority Investment Q4/24 Domestic E-Commerce GMS *1*2*3 Domestic EC GMS returned to growth, due in part to the peak demand associated with hometown tax donations normalized backed to Q4 compared to Q3 peak seen in 2023 Aiming for a mid- to high
Slide 40: FY2024 Domestic E-Commerce GMS
Internet Services Segment Domestic EC International BU Minority Investment FY2024 Domestic E-Commerce GMS *1*2*3 Although GMS was a minus figure YoY caused by temporary factors such as the revision to the SPU & 0/5 rules and the end to nationwide travel support, excluding those temporary factors, gr
Slide 41: Q4/24 Domestic E-Commerce Revenue
Internet Services Segment Domestic EC International BU Minority Investment Q4/24 Domestic E-Commerce Revenue Core Businesses saw an increase in revenue, driven by a rebound in demand after hometown tax donations were brought forward in 2023, and continued revenue growth at Rakuten Travel and Rakuten
Slide 42: FY2024 Domestic E-Commerce Revenue
Internet Services Segment Domestic EC International BU Minority Investment FY2024 Domestic E-Commerce Revenue * Although Core Businesses were affected by temporary factors such as the revision to the SPU & 0/5 rules and the end to nationwide travel support, it achieved an increased revenue partly du
Slide 43: Q4/24 Domestic E-Commerce Operating Income
Internet Services Segment Domestic EC International BU Minority Investment Q4/24 Domestic E-Commerce Operating Income Core Businesses achieved increased profits due to increased revenue, mainly from Rakuten Ichiba and Rakuten Travel Growth Investment Businesses recorded gains on the sale of properti
Slide 44: FY2024 Domestic E-Commerce Operating Income
Internet Services Segment Domestic EC International BU Minority Investment FY2024 Domestic E-Commerce Operating Income * Profits in Core Businesses decreased due to temporary factors such as the revision to the SPU and 0/5 rules, the end to nationwide travel support, and the transfer of some service
Slide 45: Domestic EC: Adjustment Items in FY2024
Internet Services Segment Domestic EC International BU Minority Investment Domestic EC: Adjustment Items in FY2024 We aim to accelerate Domestic EC GMS growth in the mid-to-long term toward our JPY 10tn target 2022 2023 2024 2025~ 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3
Slide 46: 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 Increase in online shopping owing to the COVID-19 pandemic was maintained even after the normalization of economic activities Online shopping spending growth remained
Slide 47: 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 Opened in 2016 Narashino Ibaraki Fukuoka Rakuten 24
Slide 48: Q4/24 International Business Unit Revenue
Internet Services Segment Domestic EC International BU Minority Investment Q4/24 International Business Unit Revenue *1*2 In Open Commerce, increase in Rakuten Rewards’ GTV contributed to increased revenue Strong revenue from Rakuten Kobo's new color device and the expansion of Rakuten Viber's custo
Slide 49: FY2024 International Business Unit Revenue
Internet Services Segment Domestic EC International BU Minority Investment FY2024 International Business Unit Revenue *1*2 Rakuten Rewards GTV and the customer base for each content service grew steadily Increased revenue from Rakuten Kobo and Rakuten Viber drove growth. (USD mm) +8.5% YoY ■ Others*
Slide 50: Q4/24 International Business Unit Operating Income
Internet Services Segment Domestic EC International BU Minority Investment *1*2*3 Q4/24 International Business Unit Operating Income Strong revenue growth from Rakuten Rewards, Rakuten Viber, etc. contributed to increased profits Coupled with efforts to reduce costs and strengthen profitability, sig
Slide 51: FY2024 International Business Unit Operating Income
Internet Services Segment Domestic EC International BU Minority Investment FY2024 International Business Unit Operating Income *1*2*3 Increased revenue, cost reductions, and profitability improvement efforts in each business were successful, resulting in a full-year profit (USD mm) USD +93.45 mm YoY
Slide 52: 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 FY2024 (As of the end of Dec/24) (As of the end of Dec
Slide 53: Rakuten Capital Investment Performance
Internet Services Segment Rakuten Capital Investment Performance *1 Domestic EC International BU Minority Investment (As of Dec 2024)*2 (JPY bn) 300.2 Gain +144.0 89.3 Remaining ROI +106% (Unrealized) IRR +17% 156.2 210.9 Exit Amount (Realized) Initial Investment Remaining + Exited (2012~2024 Q4) *1
Slide 54: Minority Investment Portfolio
Internet Services Segment Domestic EC International BU Minority Investment Minority Investment Portfolio Remaining Exited*1 Non R-Capital*2 Number of *3 Investments : Internet Ride Sharing Healthcare (Partial) (Affiliated Company) Sustainability Mobile*4 / AI Other *1: Exit since 2015. Exit number d
Slide 55: FinTech Segment
FinTech Segment 55
Slide 56: Q4/24 FinTech Segment Financial Results
Q4/24 FinTech Segment Financial Results*1*2*3*4*5 Non-GAAP Q4/24 (JPY bn) Revenue YoY Operating Income YoY Rakuten Card 92.0 +8.4% 14.5 -3.7% Rakuten Bank 38.7 +13.7% 19.6 +45.7% Rakuten Securities 32.4 +21.5% 7.4 +47.6% Insurance Business 22.1 +4.0% 0.8 -80.9% Rakuten Payment 25.9 +22.9% 1.1 +2.4 *
Slide 57: FY2024 FinTech Segment Financial Results
FY2024 FinTech Segment Financial Results*1*2*3*4*5*6 Non-GAAP FY2024 (JPY bn) Revenue YoY Operating Income YoY Rakuten Card 340.3 +7.3% 62.1 +20.4% Rakuten Bank 155.3 +21.6% 67.1 +39.3% Rakuten Securities 130.4 +17.1% 33.6 +11.1% Insurance Business 85.5 +1.2% 3.0 -67.9% *5 Rakuten Payment 91.7 +22.1
Slide 58: Q4/24 FinTech Segment Revenue Breakdown
Q4/24 FinTech Segment Revenue Breakdown (JPY bn) +12.8% YoY 0.8 4.8 1.3 216.0 4.7 5.7 7.1 191.6 Rakuten Rakuten Rakuten Insurance Rakuten Q4/23 Others Q4/24 Card Bank Securities Business Payment 58
Slide 59: FY2024 FinTech Segment Revenue Breakdown
FY2024 FinTech Segment Revenue Breakdown* (JPY bn) +13.1% YoY 16.6 7.7 820.4 19.0 1.0 27.6 23.3 725.2 Rakuten Rakuten Rakuten Insurance Rakuten FY2023 Others FY2024 Card Bank Securities Business Payment *From Q3/23, Rakuten Pay (online payment) business and Rakuten Points (online) business were tran
Slide 60: Q4/24 FinTech Segment Non-GAAP Operating Income Breakdown
Q4/24 FinTech Segment Non-GAAP Operating Income Breakdown* (JPY bn) +21.5% YoY 2.4 2.4 38.7 6.2 -0.3 31.8 -3.2 -0.6 Rakuten Rakuten Rakuten Insurance Rakuten Q4/23 Others Q4/24 Card Bank Securities Business Payment *From Q3/24, Mobile Ecosystem Contribution has been reflected in segment results. Ret
Slide 61: FY2024 FinTech Segment Non-GAAP Operating Income Breakdown
FY2024 FinTech Segment Non-GAAP Operating Income Breakdown*1*2 (JPY bn) +37.9% YoY 13.5 2.2 153.4 18.9 3.4 10.5 -6.4 111.2 Rakuten Rakuten Rakuten Insurance Rakuten FY2023 Others FY2024 Card Bank Securities Business Payment *1: From Q3/23, Rakuten Pay (online payment) business and Rakuten Points (on
Slide 62: Q4/24 Rakuten Card Financial Results
FinTech Segment Card Bank Securities Insurance Payment Q4/24 Rakuten Card Financial Results Revenue grew due to increased fee income from expanded shopping and installment GTV Operating income declined due to increase in financial expenses with higher interest rate and one-off losses from the sale o
Slide 63: FY2024 Rakuten Card Financial Results
FinTech Segment Card Bank Securities Insurance Payment FY2024 Rakuten Card Financial Results Expansion of customer base throughout the year contributed to top-line growth Achieved a significant OI increase for the full year due to increased sales leverage and marketing optimization Revenue (JPY bn)
Slide 64: Rakuten Card KPIs
FinTech Segment Card Bank Securities Insurance Payment Rakuten Card KPIs Shopping GTV grew steadily along with expansion of the customer base and growth in average spend per customer, surpassing the JPY 6tn mark for the second consecutive quarter Shopping GTV Target: JPY 30tn GTV Share* Target: 30%
Slide 65: Q4/24 Rakuten Bank Financial Results and KPI
FinTech Segment Card Bank Securities Insurance Payment Q4/24 Rakuten Bank Financial Results and KPI Revenue grew due to a large increase in interest income resulting from a steady increase in assets under management and the Bank of Japan's policy interest rate hike Continued significant OI growth du
Slide 66: Q4/24 Rakuten Securities Financial Results and KPI
FinTech Segment Card Bank Securities Insurance Payment Q4/24 Rakuten Securities Financial Results and KPI Customer base significantly expanded due to zero domestic stock commissions (from Oct 2023) and new NISA Achieved substantial OI growth compared to Q4/23 which was immediately after the start of
Slide 67: FY2024 Rakuten Securities Financial Results
FinTech Segment Card Bank Securities Insurance Payment FY2024 Rakuten Securities Financial Results In addition to the expansion of the customer base, the diversification of the revenue mix has led to significant growth in revenue for the full year Achieved profit growth by successfully controlling m
Slide 68: Q4/24 Insurance Business Financial Results
FinTech Segment Card Bank Securities Insurance Payment Q4/24 Insurance Business Financial Results In Life Insurance, although revenue increased due to a recovery in face-to-face insurance sales, operating income declined due to the impact of an accounting change last year In General Insurance, altho
Slide 69: FY2024 Insurance Business Financial Results
FinTech Segment Card Bank Securities Insurance Payment FY2024 Insurance Business Financial Results In Life Insurance, revenue grew driven by a recovery in face-to face-insurance sales and strong sales of group credit insurance. However, operating income declined due to the impact of an accounting ch
Slide 70: Q4/24 Rakuten Payment Financial Results
FinTech Segment Card Bank Securities Insurance Payment Q4/24 Rakuten Payment Financial Results* Revenue grew driven by GTV increase as “Rakuten Pay” app users grew Achieved profitability due to revenue growth and continuous cost control Revenue (JPY bn) Non-GAAP Operating Income (JPY bn) +22.9% JPY
Slide 71: FY2024 Rakuten Payment Financial Results
FinTech Segment Card Bank Securities Insurance Payment FY2024 Rakuten Payment Financial Results * Revenue grew significantly due to successful expansion of Rakuten Pay app users and merchants, based on efforts since 2022 Achieved operating income profitability for the full year on continued revenue
Slide 72: Mobile Segment
Mobile Segment 72
Slide 73: Q4/24 Mobile Segment Financial Results
Q4/24 Mobile Segment Financial Results*1*2*3 Non-GAAP Q4/24 (JPY bn) Revenue QoQ QoQ Operating Income *1 Rakuten Mobile 81.6 +12.4% -46.2 +4.4 *3 MNO 46.6 +7.7% *3*4 MVNO 1.7 -11.3% Device Revenue 18.2 +38.9% *3 Other Revenue (including Rakuten Hikari, etc.) 15.1 +5.9% Rakuten Symphony 41.7 +177.9%
Slide 74: FY2024 Mobile Segment Financial Results
FY2024 Mobile Segment Financial Results*1*2*3 Non-GAAP FY2024 (JPY bn) Revenue YoY YoY Operating Income *1 Rakuten Mobile 283.9 +26.2% -216.3 +85.0 *3 MNO 166.2 +40.4% *3*4 MVNO 8.4 -36.7% Device Revenue 57.7 +1.4% *3 Other Revenue (including Rakuten Hikari, etc.) 51.7 +42.1% Rakuten Symphony 85.0 +
Slide 75: Q4/24 Mobile Segment Revenue Breakdown
Q4/24 Mobile Segment Revenue Breakdown (JPY bn) +32.0% QoQ 26.7 1.0 139.9 -2.9 9.0 106.0 99.5 99.8 95.0 Decrease due to seasonal factors Rakuten Rakuten Rakuten Q4/23 Q1/24 Q2/24 Q3/24 Others Q4/24 Mobile Symphony Energy 75
Slide 76: FY2024 Mobile Segment Revenue Breakdown
FY2024 Mobile Segment Revenue Breakdown (JPY bn) +20.9% YoY 32.6 440.7 59.0 -12.0 -3.5 364.6 Decline in revenue due to the reduction in electricity rates in April 2024, as continued cost reductions and review of our electricity suppliers enabled us to pass on the savings to our customers. FY2023 Rak
Slide 77: Q4/24 Mobile Segment Non-GAAP Operating Income/Loss Breakdown
Q4/24 Mobile Segment Non-GAAP Operating Income/Loss Breakdown*1*2 (JPY bn) Q4/23 Q1/24 Q2/24 Q3/24 Rakuten Mobile Others Q4/24 3.5 4.4 -40.7 -48.7 -53.9 -63.9 -65.6 JPY +7.9 bn QoQ *1: From Q3/24, Mobile Ecosystem Contribution has been reflected in segment results. Retroactive revisions have been ma
Slide 78: FY2024 Mobile Segment Non-GAAP Operating Income/Loss Breakdown
FY2024 Mobile Segment Non-GAAP Operating Income/Loss Breakdown*1*2 (JPY bn) FY2023 Rakuten Mobile Others FY2024 20.7 85.0 -208.9 -314.6 JPY +105.6 bn YoY *1: From Q3/24, Mobile Ecosystem Contribution has been reflected in segment results. Retroactive revisions have been made to each segment's result
Slide 79: Rakuten Mobile, Inc. Quarterly Financial Results
Mobile Segment Rakuten Mobile Rakuten Symphony Rakuten Mobile, Inc. Quarterly Financial Results Revenue Non-GAAP Operating Income*3 EBITDA*3*4 (JPY bn) (JPY bn) (JPY bn) Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 82 -13 -10 73 -20 -4 -24 68 15 -34
Slide 80: Rakuten Mobile, Inc. Yearly Financial Results
Mobile Segment Rakuten Mobile Rakuten Symphony Rakuten Mobile, Inc. Yearly Financial Results Revenue Non-GAAP Operating Income*3 EBITDA*3*4 (JPY bn) (JPY bn) (JPY bn) 284 FY2022 FY2023 FY2024 FY2022 FY2023 FY2024 52 225 -73 -167 -7 191 36 58 -236 -80 30 -316 -321 57 -7 -174 65 -455 -7 -243 175 132 -
Slide 81: Rakuten Mobile, Inc. Operating Cost and Capital Expenditure
Mobile Segment Rakuten Mobile Rakuten Symphony Rakuten Mobile, Inc. Operating Cost and Capital Expenditure 2024 Capex was JPY 81bn, lower than the initial plan of JPY 100bn Capex in 2025 expected to be about JPY 150bn Operating Cost (including Depreciation) Capital Expenditure*1*2 (JPY bn) (JPY bn)
Slide 82: Rakuten Mobile MNO Subscribers (B2C+B2B)
Mobile Segment Rakuten Mobile Rakuten Symphony Rakuten Mobile MNO Subscribers (B2C+B2B) *1 Improvement in network quality and its awareness drove the significant growth in B2C subscribers since Spring 2024 In Q4/24, some B2B subscribers were transferred to BCP, but excluding this impact, subscribers
Slide 83: Rakuten Mobile MNO Churn (B2C+B2B)
Mobile Segment Rakuten Mobile Rakuten Symphony Rakuten Mobile MNO Churn (B2C+B2B) Slight increase in churn due to increased market liquidity Gross MNO 3.11% churn 2.52% Adjusted 2.38% MNO 2.08% One-time increase due to churn* reclassification of 2.10% 1.70% 1.71% some B2B subscribers* 1.54% 1.48% B2
Slide 84: ARPU
Mobile Segment Rakuten Mobile Rakuten Symphony ARPU *1 In addition to the increase in data usage, Others ARPU increased on higher advertising revenue, and some options became paid services ARPU exceeded 3,000 yen in December 2024 2,968 2,918 2,771 2,861 2,812 2,821 2,801 2,856 (JPY) 845 912 912 746
Slide 85: Review of ARPU Definition
Mobile Segment Rakuten Mobile Rakuten Symphony Review of 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 calcula
Slide 86: Rakuten Mobile MNO Average Data Volume (B2C)
Mobile Segment Rakuten Mobile Rakuten Symphony Rakuten Mobile MNO Average Data Volume (B2C) Average data usage continues to increase Averaged data consumption volume per day (GB) 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 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q
Slide 87: 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 88: Rakuten Symphony Revenue
Mobile Segment Rakuten Mobile Rakuten Symphony Rakuten Symphony Revenue ◼ Revenue increased mainly on deliveries to major customers ◼ Revenue trends fluctuate due to factors such as timing of deliveries to clients, etc. (USD mm) 300 Started full-fledged 231 delivery for 1&1 Entered into 161 partners
Slide 89: Ad Business
Ad Business 89
Slide 90: Ad Business Financial Results
Ad Business*1 Financial Results Q4/24 Revenue*2 (JPY bn) FY2024 Revenue*2 (JPY bn) Ad Business Revenue Ratio Ad Business Revenue Ratio to Consolidated Revenue to Consolidated Revenue 9.9% 10.0% 9.7% 9.3% +7.9% +7.0% YoY YoY 61.9 57.3 221.1 206.6 Q4/23 Q4/24 FY2023 FY2024 *1: Aggregates advertising r
Slide 91: 4. Finance
4. Finance 91
Slide 92: Future Debt Financing Policy
Future Debt Financing Policy Continue working on reduction of interest-bearing debt in principle, but even if we need to refinance to a certain extent in the future, hurdles and costs of raising funds will be significantly reduced Senior Bonds Hybrid Bonds ✓ Continue to reduce the balance ✓ Early re
Slide 93: Achieved cash generation of JPY 144.5 billion
Cash Conversion Cycle Improvements Continuing efforts to optimize working capital to reduce leverage Cash generated by working capital optimization was JPY 144.5bn in FY2024, compared to the original target of JPY 50bn Further upside Achieved cash generation of FY2024 Actual JPY 144.5bn JPY 144.5 bi
Slide 94: Diversifying Financing Sources including Equity, Asset Financing and Bonds
Diversifying Financing Sources including Equity, Asset Financing and Bonds 2019 2020 2021 2022 2023 2024 Public offering and Strengthening of Strategic Transaction Third-party allotments involving Rakuten Securities Strategic Transaction JPY 296 bn JPY 87 bn Third-party allotments Strategic Transact
Slide 95: Rakuten Group's Evaluation in the Bond Market
Rakuten Group's Evaluation in the Bond Market As Rakuten Group's creditworthiness improves, market prices for existing bonds, and new issuance conditions have improved significantly Improvement in new issuance conditions has led to a further increase in market prices, indicating a reduction in futur
Slide 96: 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 97: Completion of Partial Buy-back and Cancellation of No. 2 and No. 4 Domestic Subordinated Bonds
Completion of Partial Buy-back and Cancellation of No. 2 and No. 4 Domestic Subordinated Bonds Focus on balance sheet management by actively controlling schedule of bond redemptions No. 2 domestic No. 4 domestic subordinated bond subordinated bond Balance at the start of purchase JPY 26.0 bn JPY 50.
Slide 98: Sale and Leaseback Scheme
Sale and Leaseback Scheme Rakuten Mobile raised JPY 170bn through sale and leaseback of telecom equipment owned by the company Treated as a financial transaction under IFRS/J-GAAP accounting, therefore fixed assets sold to SPC will continue to be recognized Infrastructure Funds Rakuten Mobile, Inc.
Slide 99: Sale and Leaseback Accounting Treatment
Sale and Leaseback Accounting Treatment Rakuten Mobile raised JPY 170 bn through sale and leaseback of telecom equipment owned by the company Treated as a financial transaction under IFRS/J-GAAP accounting, therefore fixed assets sold to SPC will continue to be recognized Rakuten Group, Inc. - Conso
Slide 100: 5. ESG
5. ESG 100
Slide 101: Group Sustainability Strategy
Group Sustainability Strategy In 2022, Rakuten announced “Vision 2030”, its mid-long-term management plan, with sustainability identified as one the pillars supporting the achievement of ambitious business goals. In 2024, the Group Sustainability Strategy was updated with the adoption of goals by 20
Slide 102: Awards and Recognitions
Awards and Recognitions Rakuten’s efforts towards the realization of sustainable society have been recognized in Japan and overseas (World index) *The inclusion of Rakuten Group, Inc. in any MSCI index, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a s
Slide 103: This presentation includes forward-looking statements that reflect management’s current assumptions and expectations …
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