Earnings Release for Q1 of FY2026 Financial Results

Rakuten Group, Inc.

May 14, 2026

Supplementary materials for financial results: Yes

Financial results information meeting held: Yes (For institutional investors and analysts)

1. Consolidated Results for the three months ended March 31, 2026 (January 1 - March 31, 2026)
   1. Consolidated Operating Results

      (Yen amounts are rounded to the nearest million)

      (%, YoY)

      	Revenue		Operating income		Income before income tax		Net income
      	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%
      Three months ended March 31, 2026	643,583	14.4	30,394	-	17,375	-	(1,758)	-
      Three months ended March 31, 2025	562,704	9.6	(15,444)	-	(45,839)	-	(61,883)	-

      	Net income attributable to owners of the Company		Comprehensive income		Basic earnings per share attributable to owners of the Company	Diluted earnings per share attributable to owners of the Company
      	Millions of Yen	%	Millions of Yen	%	Yen	Yen
      Three months ended March 31, 2026	(18,648)	-	39,577	-	(8.59)	(8.60)
      Three months ended March 31, 2025	(73,471)	-	(106,788)	-	(34.08)	(34.09)

      (Reference) Other important management indicators

      	EBITDA *
      Three months ended March 31, 2026	Millions of Yen	%
      	108,791	36.2
      Three months ended March 31, 2025	79,889	51.4

      * Calculated by adding depreciation and amortization expenses, etc. to Non-GAAP operating income. We believe that EBITDA is a useful indicator for evaluating the cash flow generation ability of the Rakuten Group's business activities. For more information on Non-GAAP operating income, please see page 4, "1. Qualitative Information Concerning Quarterly Financial Results (1) Qualitative Information Concerning Consolidated Operating Results".

   2. Consolidated Financial Position

   	Total assets	Total equity	Total equity attributable to owners of the Company	Consolidated equity ratio *	Ratio of total equity attributable to owners of the Company to total assets
   	Millions of Yen	Millions of Yen	Millions of Yen	%	%
   As of March 31, 2026	29,314,001	1,276,629	901,135	4.4	3.1
   As of December 31, 2025	28,804,400	1,354,232	992,402	4.7	3.4

   * Calculated by dividing total equity by total assets. As the card business, banking business and securities business account for a large proportion of the Rakuten Group's total assets, we believe that using total capital that incorporates non-controlling interests in these businesses is useful in understanding the Rakuten Group's financial position.

2. Dividends

   	Dividend per Share
   	1Q	2Q	3Q	4Q	Year
   FY2025 FY2026	Yen - -	Yen 0.00	Yen -	Yen 0.00	Yen 0.00
   FY2026 (Forecast)		-	-	-	-

   Note: Dividend per share for the fiscal year ending December 31, 2026 has not been decided yet, and there are no changes to the previously disclosed dividend forecast.

3. Estimate of Consolidated Operating Results for the fiscal year 2026 (January 1 to December 31, 2026)

For the estimate of consolidated operating results for the fiscal year 2026, we aim for high single-digit growth in consolidated revenue compared to the fiscal year 2025, excluding the securities business whose results are heavily impacted by stock market conditions. (For details, please see page 9, "1. Qualitative Information Concerning Quarterly Financial Results (3) Qualitative Information Concerning Estimate of Consolidated Operating Results".)

Note: There are no changes to the previously disclosed consolidated forecasts for the year ending December

31, 2026.

1. Significant Change in Scope of Consolidation for the Current Period: No New: － (Company name) － Excluded: － (Company name) －
2. Changes in Accounting Policies and Changes in Accounting Estimates

   1. Changes in accounting policies required by IFRS: No

   2. Changes in accounting policies due to other reasons: No

   3. Changes in accounting estimates: Yes

      Note: For details, please see page 16, "2. Condensed Quarterly Consolidated Financial Statements and Notes,

      (6) Notes to the Condensed Quarterly Consolidated Financial Statements (Significant Accounting Estimates and Judgments)".

3. Number of Shares Issued (Common Stock)

   1. Total number of shares issued at the end of the period (including treasury stocks) 2,173,696,300 shares (As of March 31, 2026)

      2,169,972,100 shares (As of December 31, 2025)

   2. Number of treasury stocks at the end of the period 6,149 shares (As of March 31, 2026)

      5,878 shares (As of December 31, 2025)

   3. Average number of shares for the period (cumulative from the beginning of the year) 2,171,733,956 shares (January 1 - March 31, 2026)

2,155,896,409 shares (January 1 - March 31, 2025)

Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified public accountants or an audit firm: Yes (voluntary)

Consolidated earnings forecasts for the year ending December 31, 2026 are based on information that is available at the time of writing and involve uncertainties. Therefore, due to various changing factors, the actual performance may differ from these projections.

1. Qualitative Information Concerning Quarterly Financial Results
   1. Qualitative Information Concerning Consolidated Operating Results

      The Rakuten Group discloses consolidated operating results in terms of both its internal measures which management relies upon in making decisions (hereinafter the "Non-GAAP financial measures") and those under IFRS Accounting Standards.

      Non-GAAP operating income is operating income under IFRS Accounting Standards (hereinafter "IFRS operating income") after deducting unusual items and other adjustments as prescribed by the Rakuten Group. Management believes that the disclosure of Non-GAAP financial measures facilitates comparison between the Rakuten Group and peer companies in the same industry or comparison of its business results with those of prior fiscal years by stakeholders, and can provide useful information in understanding the underlying business results of the Rakuten Group and its future outlook. Unusual items refer to one-off items that the Rakuten Group believes should be excluded for the purposes of preparing a future outlook based on certain rules. Other adjustment items are those that tend to differ depending on the standards applied, and are therefore less comparable between companies, such as share based compensation expenses and amortization of acquisition-related intangible assets.

      Note: For disclosure of Non-GAAP financial measures, the Rakuten Group refers to the rules specified by the U.S. Securities and Exchange Commission but does not fully comply with such rules.

      1. Operating Results for the three months ended March 31, 2026 (Non-GAAP basis)

         For the three months ended March 31, 2026, the global economy showed signs of a gradual recovery, although some regions experienced a slowdown. Looking ahead, it is necessary to pay attention to Middle East affairs, the impact of fluctuations in financial markets and future U.S. policy trends, among other factors. In the Japanese economy, there have been signs of recovery in personal consumption, and looking ahead, improvements in employment and income conditions, and the effects of various policies are expected to support a moderate recovery.

         According to the "White Paper on Information and Communications in Japan" (Note), in Japan, which is experiencing population decline and increasingly diverse and complex regional and social challenges, it is necessary to thoroughly utilize digital technologies, including generative AI, to maintain growth potential and accelerate digital transformation (DX). The importance of digital infrastructure, which is indispensable for achieving this is increasing. In response to this situation, the Ministry of Internal Affairs and Communications formulated the "Digital Infrastructure Development Plan 2030" in June 2025, aiming to promote the expansion of high-quality communication services, as well as research, development, and social implementation of Beyond 5G, thereby advancing the establishment of a digital foundation to support an AI society.

         Under such an environment, the Rakuten Group is actively developing and deploying services utilizing advanced technologies such as AI, leveraging the overwhelming amount and quality of data accumulated through membership and various online and offline services, improving network quality in mobile services, and acquiring users. Furthermore, by further evolving and expanding the Rakuten Ecosystem, we aim to enhance our competitiveness and provide solution services that are uniquely possible due to the accumulation of unique data assets through various services such as Internet Services, FinTech, and Mobile, thereby evolving into an "AI Empowerment Company" and aiming to make people's lives more convenient and prosperous. In addition, amid uncertainties about the future of the economy, such as continued inflation, and exchange rate movements etc., the Rakuten Group, with its diverse business portfolio, will maximize the synergies it can achieve as a strength, accurately grasp consumer trends and needs, and seize further growth opportunities.

         As a group, while working to increase revenue and reduce costs through the utilization of AI, in the Internet Services segment, we focused on acquiring new customers, nurturing loyal users, promoting cross-use primarily among mobile users, and developing services through deepened collaboration with local governments and regional businesses, all aimed at further growth in transaction value and revenue. As a result, the Rakuten Group achieved increased revenue and profit year-on-year. In the FinTech segment, efforts to expand the customer base and transaction value in each service and promote cross-usage between services resulted in further growth in sales and increase in segment profit. In the Mobile segment, as a result of continuous improvement of network quality, promoting awareness of this improvement, and combined with various marketing activities, the number of subscribers increased, and segment revenue expanded. In terms of costs, while marketing expenses increased to strengthen sales promotion efforts, other costs remained at previous levels, resulting in a continued reduction in segment losses.

         As a result, the Rakuten Group recorded revenue of ¥643,583 million, a 14.4% year-on-year increase for the three months ended March 31, 2026, and a Non-GAAP operating income of ¥36,299 million, compared to

         a Non-GAAP operating loss of ¥305 million in the three months ended March 31, 2025.

         Note: Source: "2025 White Paper on Information and Communications in Japan" (Ministry of Internal Affairs and Communications).

         (Non-GAAP)

         (Millions of Yen)

         	Three months ended March 31, 2025	Three months ended March 31, 2026	Amount Change YoY	% Change YoY
         Revenue	562,704	643,583	80,879	14.4	%
         Non-GAAP Operating Income (Loss)	(305)	36,299	36,604	-	%

      2. Reconciliation of Non-GAAP Operating Income to IFRS Operating Income

         For the three months ended March 31, 2026, amortization of intangible assets of ¥412 million and share based compensation expenses of ¥4,474 million were excluded from Non-GAAP operating income. One-off items listed for the three months ended March 31, 2025 include a mid-term cancellation fee of ¥2,459 million, which was incurred in the domestic sports business due to the termination of a consulting agreement that had a significant impact on team operations, and a provision for liabilities related to a lawsuit concerning payment claims for debts of a previously sold subsidiary, etc. One-off items listed for the three months ended March 31, 2026 include an impairment loss on fixed assets of ¥1,019 million, resulting from a partial withdrawal from the marketplace business in Europe. Moreover, these expenses are mainly recorded in other expenses of the Condensed Quarterly Consolidated Statement of Income.

         (Millions of Yen)

         	Three months ended March 31, 2025	Three months ended March 31, 2026	Amount Change YoY
         Non-GAAP Operating Income (Loss)	(305)	36,299	36,604
         Amortization of Intangible Assets	(1,365)	(412)	953
         Share Based Compensation Expenses	(4,382)	(4,474)	(92)
         One-off Items	(9,392)	(1,019)	8,373
         IFRS Operating Income (Loss)	(15,444)	30,394	45,838

      3. Operating Results for the three months ended March 31, 2026 (IFRS Accounting Standards basis)

         For the three months ended March 31, 2026, the Rakuten Group recorded revenue of ¥643,583 million, up 14.4% year-on-year, and an IFRS operating income of ¥30,394 million, compared with an IFRS operating loss of ¥15,444 million in the three months ended March 31, 2025, and a net loss attributable to owners of the Company of ¥18,648 million, compared with a net loss of ¥73,471 million in the three months ended March 31, 2025.

         (IFRS Accounting Standards)

         (Millions of Yen)

         	Three months ended March 31, 2025	Three months ended March 31, 2026	Amount Change YoY	% Change YoY
         Revenue	562,704	643,583	80,879	14.4	%
         IFRS Operating Income (Loss)	(15,444)	30,394	45,838	-	%
         Net Loss Attributable to Owners of the Company	(73,471)	(18,648)	54,823	-	%

      4. Segment Information

         Business results for each segment are as follows. In terms of the IFRS Accounting Standards management approach, segment profit or loss is presented on a Non-GAAP operating income basis.

         Effective from the three months ended March 31, 2026, some AI-related development costs, which were not previously allocated to individual segments, have been reflected in the segment profit or loss based on the scope of responsibility and actual usage to optimize the management and performance evaluation of each segment. Accordingly, the segment information for the three months ended March 31, 2025 has been restated to reflect this change. As a result of this change, segment profit or loss for the three months ended March 31, 2025 decreased by ¥396 million in "Internet Services", ¥145 million in "Fintech", and ¥69 million in "Mobile", while "Intercompany Transactions, etc." increased by the total amount of these decreases. This change has no impact on the consolidated revenue or operating income or loss.

         Internet Services

         In domestic e-commerce, which is a core service, we focused on acquiring new customers, nurturing loyal users, and promoting cross-use primarily among mobile users.

         In the internet shopping mall "Rakuten Ichiba", we implemented various initiatives to improve customer convenience and satisfaction. As a result, GMS and revenue grew, and coupled with improved marketing efficiency, this led to an increase in profit. In the internet travel reservation service "Rakuten Travel", transaction value recovered due to robust inbound demand and a recovery in domestic travel demand.

         Furthermore, in growth investment businesses, such as the logistics and net supermarket businesses, initiatives to improve profitability in each business proved successful, achieving a steady reduction in losses.

         In the international business unit, which operates overseas internet services, Open Commerce, including the U.S. online cashback service "Rakuten Rewards", experienced sluggish revenue growth due to the impact of partial service closures. However, it achieved profit growth, partly due to the absence of business restructuring expenses recorded in the same period of the previous fiscal year. For the video streaming service "Rakuten Viki," profit growth was achieved through measures such as price plan revisions and various cost-reduction efforts. These steady contributions from each business in the International segment drove the expansion of segment profit.

         As a result, revenue for the Internet Services segment rose to ¥317,645 million, a 4.0% year-on-year increase, while segment profit stood at ¥21,170 million, a 65.6% year-on-year increase.

         (Millions of Yen)

         	Three months ended March 31, 2025	Three months ended March 31, 2026	Amount Change YoY	% Change YoY
         Segment Revenue	305,478	317,645	12,167	4.0	%
         Segment Profit (Loss)
         Before Considering	16,481	25,102	8,621	52.3	%
         Mobile Ecosystem Contribution	(3,698)	(3,932)	(234)	-	%
         After Considering	12,783	21,170	8,387	65.6	%

         FinTech

         In FinTech, revenue increased in credit card-related services, banking services, securities services, and payment services. In credit card-related services, both the customer base for "Rakuten Card" and shopping transaction value continued to grow. In banking services, the increase in managed assets due to an expanding customer base, as well as improved investment yields driven by the Bank of Japan's policy rate hikes, led to a significant expansion in interest income. In securities services, revenue and profit grew significantly, supported by the continuous expansion of our customer base and a robust stock market. In insurance services, profit increased due to improved profitability resulting from the strategic selection and concentration of our product portfolio. In payment services, the increase in users of "Rakuten Pay" drove growth in transaction value, and efficient marketing initiatives contributed to significant revenue and profit growth.

         As a result, the FinTech segment recorded ¥275,324 million in revenue, a 23.1% year-on-year increase, while segment profit stood at ¥58,532 million, a 33.8% year-on-year increase.

         (Millions of Yen)

         	Three months ended March 31, 2025	Three months ended March 31, 2026	Amount Change YoY	% Change YoY
         Segment Revenue	223,579	275,324	51,745	23.1	%
         Segment Profit (Loss)
         Before Considering	48,094	64,771	16,677	34.7	%
         Mobile Ecosystem Contribution	(4,351)	(6,239)	(1,888)	-	%
         After Considering	43,743	58,532	14,789	33.8	%

         Mobile

         In Mobile, revenues centered around "Rakuten Mobile" increased and losses were reduced. "Rakuten Mobile" focused on improving network quality and raising awareness, while also implementing marketing initiatives leveraging various services within the Rakuten Ecosystem, such as "Rakuten Ichiba" and "Rakuten Card". As a result, the number of mobile subscriptions continued to grow, leading to revenue expansion.

         Regarding costs, while marketing expenses increased due to our focus on strengthening sales promotion, our efforts to control other costs contributed to the improvement in segment losses.

         As a result, the Mobile segment recorded ¥131,157 million in revenue, an 18.5% year-on-year increase, while segment losses stood at ¥38,026 million compared to a loss of ¥51,345 million in the three months ended March 31, 2025.

         Going forward, the company will continue to focus on capital investments to further improve network quality, as well as expanding its device lineup and corporate solution services, aiming to increase the number of subscribers and further enhance customer satisfaction.

         (Millions of Yen)

         	Three months ended March 31, 2025	Three months ended March 31, 2026	Amount Change YoY	% Change YoY
         Segment Revenue	110,705	131,157	20,452	18.5	%
         Segment Profit (Loss)
         Before Considering	(59,394)	(48,197)	11,197	-	%
         Mobile Ecosystem Contribution	8,049	10,171	2,122	26.4	%
         After Considering	(51,345)	(38,026)	13,319	-	%

   2. Qualitative Information Concerning Financial Position
      1. Assets, Liabilities, and Equity Assets

         Total assets as of March 31, 2026 amounted to ¥29,314,001 million, an increase of ¥509,601 million from

         ¥28,804,400 million at the end of the previous fiscal year. The primary factors were a decrease of ¥795,300 million in cash and cash equivalents, a decrease of ¥153,028 million in loans for credit card business, offset by an increase of ¥744,318 million in financial assets for securities business, an increase of ¥381,760 million in loans for banking business, and an increase of ¥244,081 million in investment securities for banking business.

         Liabilities

         Total liabilities as of March 31, 2026 amounted to ¥28,037,372 million, an increase of ¥587,204 million from

         ¥27,450,168 million at the end of the previous fiscal year. The primary factors were a decrease of ¥162,715 million in deposits for banking business, a decrease of ¥51,055 million in borrowings for banking business, and a decrease of ¥48,161 million in accounts payable - trade, offset by an increase of ¥713,486 million in financial liabilities for securities business.

         Equity

         Total equity as of March 31, 2026 was ¥1,276,629 million, a decrease of ¥77,603 million from ¥1,354,232 million at the end of the previous fiscal year. The primary factors were an increase of ¥42,506 million in other components of equity due mainly to an increase in the fair value of equity instruments measured at fair value through other comprehensive income, offset by a decrease of ¥82,311 million in other equity instruments and a decrease of ¥33,531 million in capital surplus both due to the transfer from other equity instruments to bonds and other factors.

      2. Cash Flows

         Cash and cash equivalents as of March 31, 2026 stood at ¥5,042,266 million, a decrease of ¥795,300 million from the end of the previous fiscal year. Cash flow conditions and their main factors for the three months ended March 31, 2026 are as follows.

         Cash Flows from Operating Activities

         Cash flows from operating activities for the three months ended March 31, 2026 resulted in a cash outflow of ¥487,063 million (compared with a cash outflow of ¥737,720 million for the same period of the previous fiscal year). Main factors included a cash inflow of ¥713,438 million due to an increase in financial liabilities for securities business, offset by a cash outflow of ¥744,281 million due to an increase in financial assets for securities business, and a cash outflow of ¥382,523 million due to an increase in loans for banking business.

         Cash Flows from Investing Activities

         Cash flows from investing activities for the three months ended March 31, 2026 resulted in a cash outflow of ¥223,615 million (compared with a cash outflow of ¥283,210 million for the same period of the previous fiscal year). Main factors included a net cash outflow of ¥166,188 million due to purchases and sales, etc. of investment securities for banking business (a cash outflow of ¥575,306 million due to purchases and a cash inflow of ¥409,118 million from sales and redemption), and a cash outflow of ¥44,226 million due to purchases of intangible assets.

         Cash Flows from Financing Activities

         Cash flows from financing activities for the three months ended March 31, 2026 resulted in a cash outflow of ¥84,737 million (compared with a cash outflow of ¥223,851 million for the same period of the previous fiscal year). Main factors included a cash inflow of ¥222,800 million due to proceeds from long-term borrowings for banking business, offset by a cash outflow of ¥216,600 million due to repayments of long-term borrowings for banking business, a cash outflow of ¥57,078 million due to a decrease in short-term borrowings for banking business, and a cash outflow of ¥40,044 million due to repayments of long-term borrowings for credit card business.

   3. Qualitative Information Concerning Estimate of Consolidated Operating Results

   Currently, for the forecast of consolidated operating results for the fiscal year ending December 31, 2026, we aim for high single-digit growth in consolidated revenue compared to the fiscal year ended December 31, 2025, excluding the securities business whose results are heavily impacted by stock market conditions.

   Additionally, we aim to increase Non-GAAP operating income and IFRS operating income.

   The outlook for each segment is as follows:

   (Internet Services)

   In domestic internet services, including e-commerce platforms such as "Rakuten Ichiba", we will continue to focus on acquiring new customers and promoting cross-usage. Furthermore, we aim to drive growth in GMS and revenue by creating new markets through the utilization of data, agentic AI tools like AI concierge and others, and by further increasing the purchase amount of existing users. In "Rakuten Travel", we will continue to capture the expanding inbound demand and strengthen marketing initiatives to achieve high growth in transaction value. In overseas internet services, we aim to achieve sustained profitability in this segment by expanding operations and revenue in services such as "Rakuten Rewards" and "Rakuten Viber", as well as by accelerating improvements in businesses currently operating at a loss.

   (FinTech)

   In credit card-related services, we aim for further growth in shopping transaction value and pursue business expansion and enhanced profit margins through strengthened group synergies and marketing initiatives. In banking services, we aim for further growth by diversifying personal loan products, promoting securitization businesses involving monetary claims and real estate held by corporations, and expanding interest income.

   Additionally, we aim to increase non-interest income by acquiring salary deposits and direct debit payment accounts, thereby promoting the use of accounts as everyday banking tools. In insurance services, we aim for further improvements in profitability by strengthening face-to-face channels for life insurance services and enhancing the product portfolio for general insurance services. In securities services, while forecasts are challenging due to the significant impact of stock market conditions, we aim for further expansion of our customer base through new account acquisitions and continued growth in diversified revenue sources such as margin trading. In payment services, we aim to expand operations and profits by growing its customer base and continuing efficient marketing initiatives.

   (Mobile)

   In "Rakuten Mobile", while continuing efforts to improve network quality and raise awareness, we will implement attractive marketing initiatives leveraging the Rakuten Ecosystem to strengthen our customer base. Additionally, we will work to acquire more subscribers by making proposals to corporate clients and local governments nationwide that have business relationships with the Rakuten Group. Furthermore, we will expand the installation of new 4G and 5G base stations and aim to build a network that can be used in emergencies, such as during disasters, even in areas previously outside communication range, through direct communication between smartphones and low-earth orbit satellites. Through these initiatives we aim to provide a higher-quality network environment, accelerate the pace of subscriber acquisition, and improve the profitability of the mobile business. Meanwhile, as global efforts to revolutionize the network equipment configuration for telecommunication carriers and to promote the openness of base stations advance, Rakuten Symphony, which provides communication platforms and other solutions using innovative mobile network technologies, will advance its global expansion by increasing revenue from existing customers and approaching new customers, thereby seizing business opportunities accurately.

2. Condensed Quarterly Consolidated Financial Statements and Notes

1. Condensed Quarterly Consolidated Statement of Financial Position

   As of December 31, 2025

   (Millions of Yen) As of

   March 31, 2026

   Assets

   Cash and cash equivalents	5,837,566	5,042,266
   Accounts receivable - trade	443,557	412,075
   Financial assets for securities business	6,035,176	6,779,494
   Loans for credit card business	3,662,676	3,509,648
   Investment securities for banking business	2,567,328	2,811,409
   Loans for banking business	5,440,459	5,822,219
   Investment securities for insurance business	202,745	192,822
   Derivative assets	276,706	307,596
   Investment securities	491,145	546,562
   Other financial assets	1,115,534	1,138,908
   Investments in associates and joint ventures	27,104	26,398
   Property, plant and equipment	1,068,509	1,074,951
   Intangible assets	1,079,201	1,111,378
   Deferred tax assets	71,912	72,415
   Other assets	484,782	465,860
   Total assets	28,804,400	29,314,001

   Liabilities

   Accounts payable - trade	553,582	505,421
   Deposits for banking business	12,741,293	12,578,578
   Financial liabilities for securities business	6,028,009	6,741,495
   Derivative liabilities	77,087	79,794
   Bonds and borrowings	1,598,052	1,754,905
   Borrowings for securities business	269,228	269,250
   Bonds and borrowings for credit card business	810,559	789,414
   Borrowings for banking business	2,891,783	2,840,728
   Other financial liabilities	1,551,575	1,542,385
   Income taxes payable	43,687	42,403
   Provisions	390,956	398,602
   Insurance contract liabilities	136,350	133,337
   Employee retirement benefit liabilities	48,958	49,031
   Deferred tax liabilities	79,765	95,008
   Other liabilities	229,284	217,021
   Total liabilities	27,450,168	28,037,372

   Equity

   Equity attributable to owners of the Company

   Common stock	459,508	461,066
   Capital surplus	658,458	624,927
   Other equity instruments	479,661	397,350
   Retained earnings	(1,036,141)	(1,055,630)
   Treasury stock	(5)	(5)
   Other components of equity	430,921	473,427
   Total equity attributable to owners of the Company	992,402	901,135
   Non-controlling interests	361,830	375,494
   Total equity	1,354,232	1,276,629
   Total liabilities and equity	28,804,400	29,314,001

2. Condensed Quarterly Consolidated Statement of Income and Comprehensive Income Condensed Quarterly Consolidated Statement of Income (For the three months ended March 31, 2025 and 2026)

   (Millions of Yen)

   	Three months ended	Three months ended
   	March 31, 2025	March 31, 2026
   	(January 1 to March 31, 2025)	(January 1 to March 31, 2026)
   Continuing Operations
   Revenue	562,704	643,583
   Operating expenses	566,418	607,930
   Other income	2,640	1,455
   Other expenses	14,370	6,714
   Operating income (loss)	(15,444)	30,394
   Financial income	4,346	11,713
   Financial expenses	35,148	23,796
   Share of income (losses) of investments in associates and joint ventures	407	(936)
   Income (loss) before income tax	(45,839)	17,375
   Income tax expenses	16,044	19,133
   Net loss	(61,883)	(1,758)
   Net Income (loss) attributable to:
   Owners of the Company	(73,471)	(18,648)
   Non-controlling interests	11,588	16,890
   Net loss	(61,883)	(1,758)

   Loss per share attributable to owners of the Company

   (Yen)

   Basic (34.08) (8.59)

   Diluted (34.09) (8.60)

   Condensed Quarterly Consolidated Statement of Comprehensive Income (For the three months ended March 31, 2025 and 2026)

   Three months ended March 31, 2025

   (Millions of Yen) Three months ended

   March 31, 2026

   (January 1 to March 31, 2025) (January 1 to March 31, 2026)

   Net loss (61,883) (1,758)

   Other comprehensive income

   Items that will not be reclassified to net income

   Changes in equity instruments measured

   at fair value through other comprehensive income

   (452) 33,933

   Other comprehensive income of investments in associates and joint ventures	5	(19)
   Total items that will not be reclassified to net income	(786)	34,128
   Items that may be reclassified to net income Foreign currency translation adjustments	(40,126)	7,151

   Remeasurement of defined benefit plans (339) 214

   Changes in debt instruments measured

   at fair value through other comprehensive income

   (3,776) (2,879)

   Cash flow hedges 2,106 3,436

   Changes on insurance contracts due to changes in interest rates not recognized in profit or loss Changes on reinsurance contracts due to changes in interest rates not recognized in profit or loss

   98 (441)

   (547) (228)

   Other comprehensive income of investments in associates and joint ventures	(1,874)	168
   Total items that may be reclassified to net income	(44,119)	7,207
   Total other comprehensive income, net of tax	(44,905)	41,335
   Comprehensive income	(106,788)	39,577
   Comprehensive income attributable to: Owners of the Company	(114,297)	23,788
   Non-controlling interests	7,509	15,789
   Comprehensive income	(106,788)	39,577

3. Condensed Quarterly Consolidated Statement of Changes in Equity (For the three months ended March 31, 2025)

   Equity attributable to Owners of the Company

   Total Equity

   (Millions of Yen)

   Non-

   Common

   Capital

   Other Equity

   Retained

   Treasury

   Other

   attributable to

   controlling

   Total Equity

   Stock

   Surplus

   Instruments

   Earnings

   Stock

   Components

   Owners of the

   Interests

   As of January 1, 2025 Comprehensive income

   Net loss

   Other comprehensive income, net of tax Total comprehensive income

   Transactions with owners etc.

   Transfer from other equity instruments to bonds

   Reclassified from other components of equity to retained earnings

   Acquisition of treasury stock Exercise of share acquisition rights

   Share based compensation expenses Equity transactions with non-controlling interests

   Others

   Total transactions with owners etc.

   As of March 31, 2025

   of Equity

   Company

   452,647	649,389	398,717	(824,700)	(4)	251,819	927,868	310,646	1,238,514
   -	-	-	(73,471)	-	-	(73,471)	11,588	(61,883)
   -	-	-	-	-	(40,826)	(40,826)	(4,079)	(44,905)
   -	-	-	(73,471)	-	(40,826)	(114,297)	7,509	(106,788)
   -	-	-	-	-	-	-	-	-
   -	-	-	(2,459)	-	2,459	-	-	-
   -	-	-	-	(0)	-	(0)	-	(0)
   1,327	(1,327)	-	-	-	-	0	-	0
   -	4,466	-	90	-	-	4,556	-	4,556
   -	5	-	-	-	-	5	115	120
   -	-	-	21	-	-	21	(242)	(221)
   1,327	3,144	-	(2,348)	(0)	2,459	4,582	(127)	4,455
   453,974	652,533	398,717	(900,519)	(4)	213,452	818,153	318,028	1,136,181

   (For the three months ended March 31, 2026)

   Equity attributable to Owners of the Company

   Total Equity

   (Millions of Yen)

   Non-

   Common

   Capital

   Other Equity

   Retained

   Treasury

   Other

   attributable to

   controlling

   Total Equity

   Stock

   Surplus

   Instruments

   Earnings

   Stock

   Components

   Owners of the

   Interests

   459,508	658,458	479,661	(1,036,141)	(5)	430,921	992,402	361,830	1,354,232
   -	-	-	(18,648)	-	-	(18,648)	16,890	(1,758)
   -	-	-	-	-	42,436	42,436	(1,101)	41,335
   -	-	-	(18,648)	-	42,436	23,788	15,789	39,577
   -	(36,099)	(80,811)	(1,116)	-	-	(118,026)	-	(118,026)
   -	-	-	(70)	-	70	-	-	-
   -	-	-	-	(0)	-	(0)	-	(0)
   1,558	(1,558)	-	-	-	-	0	-	0
   -	4,156	-	372	-	-	4,528	-	4,528
   -	-	-	-	-	0	0	(2,125)	(2,125)
   -	(30)	(1,500)	(27)	-	-	(1,557)	(0)	(1,557)
   1,558	(33,531)	(82,311)	(841)	(0)	70	(115,055)	(2,125)	(117,180)
   461,066	624,927	397,350	(1,055,630)	(5)	473,427	901,135	375,494	1,276,629

   As of January 1, 2026 Comprehensive income

   Net loss

   Other comprehensive income, net of tax Total comprehensive income

   Transactions with owners etc.

   Transfer from other equity instruments to bonds

   Reclassified from other components of equity to retained earnings

   Acquisition of treasury stock Exercise of share acquisition rights

   Share based compensation expenses Equity transactions with non-controlling interests

   Others

   Total transactions with owners etc.

   As of March 31, 2026

   of Equity

   Company

4. Condensed Quarterly Consolidated Statement of Cash Flows

Three months ended March 31, 2025

(Millions of Yen) Three months ended

March 31, 2026

Proceeds from sales and redemption of investment securities for banking business

295,981 409,118

Purchases of investment securities for insurance business (48,517) (28,247)

1. Condensed Quarterly Consolidated Statement of Cash Flows (Continued)

   Three months ended March 31, 2025

   (Millions of Yen) Three months ended

   March 31, 2026

   (January 1 to March 31, (January 1 to March 31,

   	2025)	2026)
   Cash flows from financing activities
   Net increase (decrease) in short-term borrowings	(570)	-
   Net increase (decrease) in commercial papers	(8,300)	39,800
   Proceeds from long-term borrowings	14,504	27,613
   Repayments of long-term borrowings	(40,503)	(38,635)
   Redemption of bonds	(290,248)	-

   Net increase (decrease) in short-term borrowings for securities business

   Net increase (decrease) in short-term borrowings for credit card business

   73,500 －

   13,253 27,144

   Net increase (decrease) in commercial papers for credit card business	2,700	(33,600)
   Proceeds from long-term borrowings for credit card business	25,746	25,059
   Repayments of long-term borrowings for credit card business	(39,815)	(40,044)
   Net increase (decrease) in short-term borrowings for banking business	64,218	(57,078)
   Proceeds from long-term borrowings for banking business	-	222,800
   Repayments of long-term borrowings for banking business	-	(216,600)
   Repayments of lease liabilities	(16,678)	(18,168)
   Interest paid	(21,248)	(18,753)
   Others	(410)	(4,275)
   Net cash flows from financing activities	(223,851)	(84,737)
   Effect of change in exchange rates on cash and cash equivalents	(7,638)	115
   Net increase (decrease) in cash and cash equivalents	(1,252,419)	(795,300)
   Cash and cash equivalents at the beginning of the period	6,170,888	5,837,566
   Cash and cash equivalents at the end of the quarterly period	4,918,469	5,042,266

2. Assumptions for Going Concern

   For the three months ended March 31, 2026 (January 1 to March 31, 2026) No items to report.

3. Notes to the Condensed Quarterly Consolidated Financial Statements (Basis of Preparation)

The Rakuten Group's Condensed Quarterly Consolidated Financial Statements have been prepared in accordance with Article 5, Paragraph 2 of the Standards for the Preparation of Quarterly Financial Statements of the Tokyo Stock Exchange, Inc. (with the use of the omitted disclosures as specified in Article 5, paragraph 5 of the same standards). The Condensed Quarterly Consolidated Financial Statements are prepared in accordance with IAS 34 'Interim Financial Reporting', but some of the disclosure items and notes required by IAS 34 have been omitted. Therefore, the Condensed Quarterly Consolidated Financial Statements do not conform to a set of Condensed Financial Statements in accordance with IAS 34. As this summary does not contain all the information required in annual consolidated statements, it is advised to be used in combination with the consolidated financial statements for the fiscal year ended December 31, 2025.

For the three months ended March 31, 2026 (January 1 to March 31, 2026)

There were no significant changes either in the scope of consolidation or in the scope of equity method with respect to the condensed quarterly consolidated financial statements for the three months ended March 31, 2026, as compared with the consolidated financial statements for the fiscal year ended December 31, 2025.

Material accounting policies adopted by the Rakuten Group in the Condensed Quarterly Consolidated Financial Statements for the three months ended March 31, 2026 remain the same as those adopted in the consolidated financial statements for the previous fiscal year. In addition, income tax expenses for the three months ended March 31, 2026 are calculated based upon an estimated annual effective tax rate.

In preparing the Condensed Quarterly Consolidated Financial Statements under IFRS Accounting Standards for the three months ended March 31, 2026, the Rakuten Group uses judgments, accounting estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. These estimates and assumptions are based on the best judgment of management, made by gathering past experience and available information and in consideration of various factors that are considered reasonable as of the closing date. However, the figures based on these estimates and assumptions by their nature may differ from actual results.

Estimates and underlying assumptions are subject to continuous review. The effect of these revised estimates is recognized in the period in which the estimates are revised as well as future periods.

Estimates and judgments that have a significant impact on the amounts in the Condensed Quarterly Consolidated Financial Statements for the three months ended March 31, 2026 remain the same as those for the previous fiscal year, except for the following.

Changes in Accounting Estimates

After a certain period of time has elapsed since the commencement of business operations, and a review of part of our capital expenditure plan, we re-evaluated the actual utilization of certain network equipment included in the Rakuten Group's machinery and equipment, etc. As a result, in the current consolidated fiscal year, we have changed the useful lives of these assets based on more reasonable estimates of their economic useful lives to better reflect actual usage.

As a result of this change, Operating income and Income before income taxes for the three months ended March 31, 2026 each increased by ¥8,609 million, compared with the amounts that would have been reported under the previous method.

1. General Information

   As a global innovation company engaged in the three main activities of Internet Services, FinTech, and Mobile, the Rakuten Group is organized into three reportable segments: "Internet Services", "FinTech", and "Mobile". Operating segments are not aggregated in determining reportable segments.

   For the reportable segments, separate financial information on the operational units of the Rakuten Group is available, and such financial information is subject to periodic review for the Board of Directors to decide on the distribution of management resources and evaluate performance.

   The "Internet Services" segment comprises businesses providing various e-commerce sites including internet shopping mall "Rakuten Ichiba", online cash-back sites, travel booking sites, portal sites, and digital content sites, along with provision of messaging services, sales of advertising, etc. on these sites, and management of professional sports teams, etc.

   The "FinTech" segment comprises businesses providing services related to credit cards, banking and securities over the Internet, crypto asset (virtual currency) spot transactions, life insurance, general insurance, and payment services, etc.

   The "Mobile" segment comprises businesses providing communication services and technologies, operating electricity supply services, and making investments related to the Mobile segment, etc.

2. Measurement of Segment Revenue and Segment Profit (Loss) by Operating Segments

   The accounting treatment of the reported operating segment is based on IFRS Accounting Standards, and operating segment revenue and segment profit (loss) are those before intercompany eliminations without consideration of consolidation adjustments, except for certain subsidiaries. Transactions between operating segments are based on prevailing market price. Non-GAAP operating income, the internal measures management uses in making decisions, is calculated by adjusting the nonrecurring items and other adjustment items prescribed by the Rakuten Group from the operating income recorded in accordance with IFRS.

   Management believes that the disclosure of Non-GAAP financial measures facilitates comparison between the Rakuten Group and peer companies in the same industry or comparison of their business results with those of prior fiscal years by stakeholders, and can provide useful information in understanding the underlying business results of the Rakuten Group and their future outlook. Nonrecurring items refer to one-off items that the Rakuten Group believes should be excluded in preparing a future outlook based on certain rules. Other adjustment items are those that tend to differ depending on the standards applied, and are therefore less comparable between companies, such as share-based compensation expenses and amortization of acquisition-related intangible assets.

   The Rakuten Group does not allocate assets and liabilities to the operating segment information used by the chief operating decision maker.

   Considering the expanding mutual contribution effects between segments within the Rakuten Ecosystem, mutual contribution effects and mutual customer referral effects (hereinafter "Mobile Ecosystem Contribution") have been reflected in the segment profit and loss to allow for a more precise performance evaluation.

   Mobile Ecosystem Contribution

   The Mobile Ecosystem Contribution is calculated based on the contribution effect derived from the tendency of Rakuten Mobile MNO subscribers to use various services of the Rakuten Group more than non-subscribers, minus the customer referral effect received from each segment. This calculation has been reflected in the segment information.

   Mobile Ecosystem Contribution = i) Gross profit uplift effect of Rakuten Mobile MNO subscribers - ii) Customer referral effect from group companies to the mobile business

   Calculation Method of Uplift Effect and Customer Referral Effect between Segments

   1. Gross profit uplift effect of Rakuten Mobile MNO subscribers

      Depending on the characteristics of each business of the Rakuten Group, the monthly amount is calculated using one of the following methods.

      1. The difference in the monthly average revenue per user over the past year between Rakuten Mobile

         MNO individual subscribers and non-subscribers in each business of the Rakuten Group × The gross profit margin of each business for each month × The number of Rakuten Mobile MNO individual subscribers at the end of each month

      2. The difference in annual usage rates in each business of the Rakuten Group between Rakuten Mobile MNO individual subscribers and non-subscribers × Monthly average revenue per user over the past year for each business × The gross profit margin of each business for each month × The number of Rakuten Mobile MNO individual subscribers at the end of each month

   2. Referral effect from group companies to the mobile business

      Number of Rakuten Mobile MNO individual subscribers each month who signed up through group company sites × Referral cost

      * Target businesses for uplift effect calculation

      The calculation targets 18 businesses: Rakuten Ichiba, Rakuten Books, Rakuten 24, Rakuten Bic, Rakuten Kobo, Rakuten Fashion, Rakuten Travel, Rakuten Mart, Rakuten Beauty, Rakuten Pay app payments, Rakuten Pay online payments, Rakuten Edy, Rakuten Point Card, Rakuten Card, Rakuten Bank, Rakuten Securities, Rakuten Life Insurance, and Rakuten General Insurance.

3. Changes in Measurement Methods of Segment Revenue and Segment Profit (Loss) by Operating Segments

Effective from the three months ended March 31, 2026, some AI-related development costs, which were not previously allocated to individual segments, have been reflected in the segment profit or loss based on the scope of responsibility and actual usage to optimize the management and performance evaluation of each segment. Accordingly, the segment information for the three months ended March 31, 2025 has been restated to reflect this change. This change has no impact on the consolidated revenue or operating income or loss.

(Millions of Yen)

(Millions of Yen)

Note: Effective from the three months ended March 31, 2026, some AI-related development costs, which were not previously allocated to individual segments, have been reflected in the segment profit or loss based on the scope of responsibility and actual usage to optimize the management and performance evaluation of each segment. Accordingly, the segment information for the three months ended March 31, 2025 has been restated to reflect this change. As a result of this change, segment profit or loss for the three months ended March 31, 2025 decreased by ¥396 million in "Internet Services", ¥145 million in "Fintech", and ¥69 million in "Mobile", while "Intercompany Transactions, etc." increased by the total amount of these decreases. This change has no impact on the consolidated revenue or operating income or loss.

(Millions of Yen)

(Millions of Yen)

Note: One-off items listed for the three months ended March 31, 2025 include a mid-term cancellation fee of

¥2,459 million, which was incurred in the domestic sports business due to the termination of a consulting agreement that had a significant impact on team operations, and a provision for liabilities related to a lawsuit concerning payment claims for debts of a previously sold subsidiary, etc. One-off items listed for the three months ended March 31, 2026 include an impairment loss on fixed assets of

¥1,019 million, resulting from a partial withdrawal from the marketplace business in Europe. Moreover, these expenses are mainly recorded in other expenses of the Condensed Quarterly Consolidated Statement of Income.

(Millions of Yen)

(Millions of Yen)

Note 1: An impairment loss on fixed assets of ¥1,019 million, resulting from a partial withdrawal from the marketplace business in Europe, was included for the three months ended March 31, 2026.

Note 2: A mid-term cancellation fee of ¥2,459 million, which was incurred in the domestic sports business due to the termination of a consulting agreement that had a significant impact on team operations, was included for the three months ended March 31, 2025.

Note 3: A provision for liabilities related to a lawsuit concerning payment claims for debts of a previously sold subsidiary was included for the three months ended March 31, 2025.

(Millions of Yen)

Note 1: Losses on valuation of derivatives from currency swaps related to foreign currency denominated permanent subordinated bonds of ¥9,895 million were recorded for the three months ended March 31, 2025. Gains on valuation of derivatives from currency swaps related to foreign currency denominated permanent subordinated bonds of ¥10,326 million were recorded for the three months ended March 31, 2026.

Note 2: Gains on valuation of derivatives from the collar contract for the prepaid variable share forward transactions of shares of Lyft, Inc. of ¥222 million were recorded for the three months ended March 31, 2025.

Note 3: Foreign exchange gains of ¥2,804 million arising from liabilities relating to funds raised from the utilization of shares of Lyft, Inc. were recorded for the three months ended March 31, 2025.

Note 4: Interest expenses incurred from financial liabilities measured at amortized cost relating to financing under the prepaid variable share forward transactions of shares of Lyft, Inc. of ¥110 million were recorded for the three months ended March 31, 2025.

Note 5: Losses on valuation of investment securities related to an investment in Lyft, Inc. of ¥2,724 million were recorded for the three months ended March 31, 2025.

Note 6: Foreign exchange losses of ¥2,130 million arising from bonds transferred from other equity instruments were recorded for the three months ended March 31, 2026.

No items to report.

May 14, 2026

The Board of Directors Rakuten Group, Inc.

Ernst & Young ShinNihon LLC Tokyo, Japan

Tomoko Tanabe

Designated Engagement Partner Certified Public Accountant

Mitsutaka Kumagai

Designated Engagement Partner Certified Public Accountant

Masayuki Tada

Designated Engagement Partner Certified Public Accountant

Kentaro Koyama

Designated Engagement Partner Certified Public Accountant

We have reviewed the accompanying Condensed Quarterly Consolidated Financial Statements of Rakuten Group, Inc. and its subsidiaries (the Group), which comprise the Condensed Quarterly Consolidated Statement of Financial Position as of March 31, 2026, and the Condensed Quarterly Consolidated Statements of Income and Comprehensive Income for the three-month and three-month periods ended March 31, 2026, and the Condensed Quarterly Consolidated Statements of Changes in Equity and Cash Flows for the three-month period ended March 31, 2026, and notes to the Condensed Quarterly Consolidated Financial Statements included in the "attachment" of Consolidated Financial Reports.

Based on our review, nothing has come to our attention that causes us to believe that the accompanying Condensed Quarterly Consolidated Financial Statements are not prepared, in all material respects, in accordance with Article 5, Paragraph 2 of the Tokyo Stock Exchange, Inc.'s Standards for the Preparation of Quarterly Financial Statements (the Standards), applying the provisions for reduced disclosures as set forth in Article 5, Paragraph 5 of the Standards.

We conducted our review in accordance with review standards for interim financial statements generally accepted in Japan. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Review of the Condensed Quarterly Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our review of the Condensed Quarterly Consolidated Financial Statements in Japan (Including regulations applicable to the audit of financial statements of Public Interest Entities.), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the evidence we have obtained provides a basis for our conclusion.

Management is responsible for the preparation of these Condensed Quarterly Consolidated Financial Statements in accordance with Article 5, Paragraph 2 of the Standards, applying the provisions for reduced disclosures as set forth in Article 5, Paragraph 5 of the Standards and for the internal controls as management determines are necessary to enable the preparation of Condensed Quarterly Consolidated Financial Statements that are free from material misstatement, whether due to fraud or error.

In preparing the Condensed Quarterly Consolidated Financial Statements, management is responsible for assessing the Group's ability to continue as a going concern, including the disclosures related to matters of going concern, as required by Article 5, Paragraph 2 of the Standards, applying the provisions for reduced disclosures as set forth in Article 5, Paragraph 5 of the Standards.

The Audit & Supervisory Board Members and the Audit & Supervisory Board are responsible for overseeing the Group's financial reporting process.

Our responsibility is to express a conclusion on these Condensed Quarterly Consolidated Financial Statements based on our review.

As part of a review in accordance with review standards for interim financial statements generally accepted in Japan, we exercise professional judgment and maintain professional skepticism throughout the review. We also:

• Make inquiries, primarily of management and persons responsible for financial and accounting matters and apply analytical and other interim review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing standards generally accepted in Japan.

• Conclude based on the evidence obtained whether anything has come to our attention that causes us to believe that the Condensed Quarterly Consolidated Financial Statements are not prepared in accordance with Article 5, Paragraph 2 of the Standards, applying the provisions for reduced disclosures as set forth in Article 5, Paragraph 5 of the Standards, should we determine that a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. Additionally, if we conclude that a material uncertainty exists, we are required to draw attention in our auditor's interim review report to the related disclosures in the Condensed Quarterly Consolidated Financial Statements or, if such disclosures are inadequate, to modify our conclusion. Our conclusions are based on the evidence obtained up to the date of our auditor's interim review report. However, future events or conditions may cause the Group to cease to continue as a going concern.

• Evaluate whether anything has come to our attention that causes us to believe that the overall presentation and disclosure of the Condensed Quarterly Consolidated Financial Statements are not prepared in accordance with Article 5, Paragraph 2 of the Standards, applying the provisions for reduced disclosures as set forth in Article 5, Paragraph 5 of the Standards.

• Obtain evidence regarding the financial information of the entities or business activities within the Group as a basis for expressing a conclusion on the Condensed Quarterly Consolidated Financial Statements. We are responsible for the direction, supervision and review of the documentation of the interim review. We remain solely responsible for our conclusion.

We communicate with the Audit & Supervisory Board Members and the Audit & Supervisory Board regarding the planned scope and timing of the review and significant review findings. We also provide the Audit & Supervisory Board Members and the Audit & Supervisory Board with a statement that we have complied with the ethical requirements regarding independence that are relevant to our review of the Condensed Quarterly Consolidated Financial Statements in Japan, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied to reduce threats to an acceptable level.

Our firm and its designated engagement partners do not have any interest in the Group which is required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.

(Notes)

1. The Company (a company disclosing the quarterly consolidated financial reports) separately holds the original of the above interim review report.

2. XBRL data and HTML data are not included in the scope of the interim review.

Note:

The English version of the financial statements consists of an English translation of the reviewed Japanese financial statements. For the Independent Auditor's Interim Review Report of the English financial statements, the Japanese original is the official text, and the English version is a translation of that text. Should there be any inconsistency between the translation and the official Japanese text, the latter shall prevail.

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