november 8, 2018 rakuten, inc. - global.rakuten.com · ・1x point* for investments in rakuten...
TRANSCRIPT
![Page 1: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/1.jpg)
November 8, 2018
Rakuten, Inc.
![Page 2: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/2.jpg)
2
P.3 Consolidated Results
P.19 FinTech Segment
P.39 Internet Services Segment
P.46 Communications
P.54 Ad Business
P.59 Other Information
![Page 3: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/3.jpg)
3
![Page 4: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/4.jpg)
4
Consolidated revenue growth: +17.7% YoY
- Year-to-date revenue and OI achieved record highs
Global GTV: +19.0% YoY
Domestic E-Commerce GMS growth accelerated: +12.1% YoY
- Continuing focus on investments in logistics and marketing activities
Non-GAAP OI: -9.9% YoY
- Gains from investment business JPY 33.9bn, General Insurance JPY 5.1bn
loss due to unusual claims
FinTech: Revenue growth strong at +28.3% YoY, Non-GAAP OI -9.6% YoY
(FinTech Non-GAAP OI excluding General Insurance: +18.8% YoY)
Cooperating with KDDI to promote competition in payments, logistics and
telecommunications
![Page 5: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/5.jpg)
5
(JPY bn)
Q3/17 Q3/18 YoYYoY excl.
General Insurance
Revenue 236.4 278.2 +17.7% +12.5%
Non-GAAP Operating Income 57.8 52.1 -9.9% -1.2%
IFRS Operating Income 51.5 43.9 -14.9% -5.0%
Q3/18 revenue at a record high. Cumulative Q1/18 to Q3/18 revenue and operating income both at record
highs
FY2017
Q1 - Q3
FY2018
Q1 - Q3YoY
Revenue 676.5 790.3 +16.8%
Non-GAAP Operating Income 133.6 142.3 +6.5%
IFRS Operating Income 120.2 133.5 +11.1%
Cumulative Q1 to Q3 revenue and operating income at record highs
![Page 6: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/6.jpg)
6
(JPY bn)
Q3/17 Q3/18 YoYYoY excl.
General Insurance
Domestic E-Commerce
Revenue 100.6 105.9 +5.2% -Operating Income 19.3 16.2 -15.8% -
Communications & SportsRevenue 25.0 30.7 +22.6% -Operating Income -0.4 -3.4 -2.9 -
Other Internet ServicesRevenue 44.7 57.1 +27.6% -Operating Income 22.8 25.7 +12.7% -
Internet Services SegmentRevenue 170.4 193.7 +13.7% -Operaing Income 41.6 38.5 -7.5% -
FinTech SegmentRevenue 83.7 107.4 +28.3% +13.7%Operating Income 18.0 16.3 -9.6% +18.8%
AdjustmentsRevenue -17.7 -22.9 -5.2 -Operating Income -1.8 -2.7 -0.9 -
Consolidated
Revenue 236.4 278.2 +17.7% +12.5%Non-GAAP Operating Income 57.8 52.1 -9.9% -1.1%IFRS Operating Income 51.5 43.9 -14.9% -5.0%
![Page 7: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/7.jpg)
7
One-off costs・Rakuten General Insurance
natural disaster claims
25.4
33.9
57.852.1
-0.9+3.4
-0.4 -2.1
-5.1
-9.032.4
Q3/17
Operating Income
(excl. gains from
investment business)
32.4
Q3/17
Gains from
Investment
business
Q3/18 Gains from
Investment business,
etc*2
FinTech
(excl. Rakuten
General Insurance)
Domestic
E-commerce
(excl. logistics related
investments, costs)
Communication
and Sports
(excl. MNO, MVNO)
Other Internet
Services
Upfront investments for future
growth・MVNO marketing costs
・MNO initial costs
・Logistics-related investments, costs
・NBA broadcasting rights*1
・Partnership costs
(JPY bn)
Q3/17
Operating Income
Q3/18
Operating Income
Excluding one-off factors and upfront
investments of existing business
*1: NBA broadcasting rights are included in Other Internet Services
*2: Including one-off costs due to reorganization of investment business
Q3/18
Operating Income
(excl. gains from
investment business, one-
off costs, and
upfront investments for
future growth)
![Page 8: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/8.jpg)
8
Along with the company reorganization on July 1, 2018, established the system for policy decision to invest
in innovative start-ups, and for comprehensive fund management. Consequently, the Rakuten Group
recorded unrealized gains on stocks of affiliate companies held by Rakuten Capital, as a result of measuring
these investments at FVtPL*
Maintaining a structure that comprehensively promotes and manages Rakuten’s investment business, both
from personnel and organizational standpoints The measurement method for some affiliated company stocks that were formerly measured based on application of
the equity method, was changed to measurement at fair value through profit or loss according to the provisions
applied to an entity that is a venture capital organization, etc., in paragraph 18 of IAS 28.
FinTech Group CompanyCommerce Company
Communications &
Energy CompanyMedia & Sports Company
Investment & Incubation
Company
New Company Structure
* Fair Value Through Profit or Loss: Financial instruments measured at fair value through net profit or loss.
![Page 9: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/9.jpg)
9
Rakuten, Inc.
Affiliated
companies
(20% - 50%)
Others (less than 20%)
Rakuten Capital
In principle accounted
for using FVtPL*1
Stocks of affiliate companies held by Rakuten Capital are basically measured at FVtPL*1
Accounted for by the
equity method
Rakuten, Inc.
Affiliated
companies
(20% - 50%)
Others (less than 20%)
Rakuten Capital
Accounted for using
FVtPL*1
Before company structure change (until July 1, 2018) After company structure change (from July 1, 2018)
*1: Fair Value Through Profit or Loss: Financial instruments measured at fair value through net profit or loss.
*2: Due to this change in accounting method, unrealized gains on stocks of the companies like Cabify, Carousell were recorded in Q3/18
Investments Investments
Cabify, Carousell*2, others Lyft, Careem, others
![Page 10: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/10.jpg)
10
+19.0% YoY
* Global Gross Transaction Value = Domestic E-Commerce GMS + Credit Card GTV + Edy GTV + Rakuten Point Card GTV + Overseas E-Commerce GMS +
Ebates GMS + Digital Contents GTV + Rakuten Marketing GTV
* Includes intercompany transactions for settlement and affiliate services
(JPY tn)
![Page 11: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/11.jpg)
11
Utilizing each other’s assets to promote service competition and improve customer convenience
*
![Page 12: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/12.jpg)
12
![Page 13: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/13.jpg)
13
Q3/18
Membership Value
JPY
4 trillion
Membership Value Target
JPY 10 trillion
Steady growth of Membership Value in line with increase of registered members
![Page 14: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/14.jpg)
14
Cross-use ratio* is steadily expanding
*Number of Rakuten Members have utilized two or more Rakuten services during the past 12 months of the listed month (as of end Sep 2018)
(Applicable services limited to those which can earn Rakuten Super Points.
![Page 15: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/15.jpg)
15
①
Total
LTV
6.2x
Inflow
from
Rakuten
Ichiba
Rakuten
Travel
Rakuten
Books
Inflow from Rakuten Ichiba to Rakuten Travel and Rakuten Books due to SPU program
〈Expansion of LTV per user〉
(Ichiba)
![Page 16: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/16.jpg)
16
②
Total
LTV
3.8x
Inflow
from
Rakuten
Point
Card
Rakuten
Ichiba
Sign up
for
Rakuten
Card
Inflow from Rakuten Point Card, which is one of the most frequent inflow services, to Rakuten Ichiba, and
then Rakuten Card due to SPU program
(Ichiba)
〈Expansion of LTV per user〉
LTV
10.6x
![Page 17: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/17.jpg)
17
③
Total
LTV
12.7x
Inflow
from
Rakuten
Ichiba
Rakuten
Card
Rakuten
Bank
Inflow from Rakuten Ichiba to Rakuten Card and Rakuten Bank due to SPU program
(Ichiba)
〈Expansion of LTV per user〉
![Page 18: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/18.jpg)
18
(Number of Unique Users)
YoY
Cross-use among FinTech services is steadily expanding
* As of Sep. 2018
![Page 19: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/19.jpg)
19
![Page 20: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/20.jpg)
20
(JPY bn)
Revenue YoYOperating
IncomeYoY
Card 47.5 +16.4% 8.7 +12.3%
Bank 20.9 +9.7% 6.6 +22.8%
Securities 14.6 +18.0% 5.2 +16.5%
Life Insurance 7.5 -6.7% 1.0 +98.9%
Others 4.6 +35.3% -0.1 -0.02
FinTech Total excl. General Insurance 95.2 +13.7% 21.3 +18.8%
General Insurance 12.3 - -5.1 -
FinTech Total 107.4 +28.3% 16.3 -9.6%
![Page 21: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/21.jpg)
21
・・・
・1x point* if Rakuten Card payment is linked to Rakuten Bank
・1x point* for investments in Rakuten Securities using points
Accelerate
Cross-use
Expand
Asset Business
Attract customers via the Rakuten Ecosystem and accelerate cross-use with the Rakuten point program
acting as a catalyst
Furthermore, ID linkage creates a seamless UX, contributing to asset growth
ID Linkage
* When members shop on Rakuten Ichiba
Ichiba
Bank
Securities
![Page 22: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/22.jpg)
22
2.6x
2.6x
New accounts opened via Rakuten Group
(Daily Average)
Number of new accounts opened through other Rakuten services grew dramatically after joining SPU Program
New accounts opened via Rakuten Group
(Daily Average)
Bank Securities
![Page 23: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/23.jpg)
23
Lead the cashless society and overwhelm competitors with collective capabilities
(Source: Rakuten estimates based on Ministry of Economy, Trade and Industry “Cashless Vision”)
(Cashless Payment Ratio 20%) (Cashless Payment Ratio 40%)
![Page 24: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/24.jpg)
24
① ② ③
× ×
Over 100 million*1
Registered members
*1 As of Sep 2018. Members who logged in one or more times after registration (domestic only, excluding membership withdrawals).
*2 As of Sep 2018.
*3 Locations with merchant contracts for Rakuten Card, Rakuten Edy, Rakuten Point Card, and/or Rakuten Pay
Stores using multiple service contracts are counted as one
Rakuten Pay, Rakuten Point Card, Rakuten Edy as of Jun/e 2018, Rakuten Card as of July 2018
Since 1997 Since 2002 Since 2005
Over 1.2 trillion*2
Total points issued
Over 1.2 million*3
Locations
![Page 25: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/25.jpg)
25
![Page 26: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/26.jpg)
26
(JPY mm)
Operating Income +12.3% YoY from growth in shopping transactions and revolving balances
Revenue
+16.4% YoY
Operating Income
+12.3% YoY
35,22337,718 37,099
39,824 40,78243,093 43,005
45,32347,480
7,724 7,177 7,832 7,389 7,725 8,149 8,332 8,580 8,679
Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18
![Page 27: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/27.jpg)
27
*Calculated on a managerial accounting basis, using different definitions from data in the Appendix.
Detailed credit card data is shown in the Appendix. Revolving balance is calculated on a principal basis.
+22.8% YoY(JPY bn) +20.6% YoY(JPY bn)
Card Shopping Transaction Value Shopping Revolving Balance
![Page 28: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/28.jpg)
28
Shopping Revolving and Cash Advances Balance
Cash Advances
+20.1% YoY
Shopping Revolving
+20.6% YoY
(JPY bn)
*Calculated on a managerial accounting basis, using different definitions from data in the Appendix.
Detailed credit card data is shown in the Appendix. Revolving balance is calculated on a principal basis.
![Page 29: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/29.jpg)
29
16mm
10mm
7 Months
11mm
12mm
13mm
14mm
15mm
9 Months
8 Months
9 Months
8 Months
8 Months
Number of cardholders surpassed 16mm in August 2018, taking only 7 months to grow 1mm accounts
Jul/14 Mar/15 Nov/15 Aug/16 Apr/17 Jan/18 Aug/18
![Page 30: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/30.jpg)
30
Rakuten Card
American Express ® Card
Rakuten Pink Card
American Express ® Card
Rakuten Premium Card
American Express ® Card
Rakuten Card American Express® Card started on September 25 in addition to JCB, VISA, and
Mastercard
Rakuten Black Card
American Express ® Card
![Page 31: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/31.jpg)
31
(JPY mm)
Operating Income +22.8% YoY due to increase in loan receivables balance
Revenue
+9.7% YoY
Operating Income
+22.8% YoY
![Page 32: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/32.jpg)
32
*1: Based on IFRS which includes derivatives in structured term deposits.*2: Other deposits include deposits in foreign currencies and others.
1,169.6 1,267.6 1,330.6 1,387.4 1,512.9
594.3
670.2 611.9 650.8
645.5 60.2
62.7 67.7 67.0
69.4 1,824.1
2,000.5 2,010.2 2,105.2
2,227.8
17/9月 17/12月 18/3月 18/6月 18/9月
Other Deposits*2
+15.1% YoY
Time Deposits
+8.6% YoY
Ordinary Deposits
+29.4% YoY
Sep/17 Dec/17 Mar/18 Jun/18 Sep/18
(JPY bn)
![Page 33: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/33.jpg)
33
Others
+44.7% YoY
Housing Loan
+40.0% YoY
Rakuten Bank
Super Loan
+0.3% YoY
(JPY bn)
Sep/17 Dec/17 Mar/18 Jun/18 Sep/18
![Page 34: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/34.jpg)
34
Boost in both revenue and operating income resulting from strong growth in domestic stock
brokerage trading
Revenue
+18.0% YoY
Operating Income
+16.5% YoY
(JPY mm)
![Page 35: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/35.jpg)
35
Promote cross-use between Rakuten services leveraging points and membership IDs
Use Rakuten Super Points to buy
investment trusts
Join SPU Program
Started from September 30, 2018
Started from September 1, 2018
Use Rakuten Card to buy investment trusts
Started from October 27, 2018
Investment experience using
Rakuten Super Points
Started from October 3, 2018
Save Points
Use Points
![Page 36: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/36.jpg)
36
(JPY mm) -6.7% YoY
Revenue
+98.9% YoY
Operating Income
(JPY mm)
Termination of reinsurance policies caused a decline in revenue, however insurance premiums continue to show strong growth, resulting in OI +98.9% YoY
![Page 37: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/37.jpg)
37
1: Internet & mail-order*2: Annualized insurance premiums for new policies in Q3/18, excluding one-year cancer insurance for eligible Rakuten members which started from Q4/14.*3: Annualized insurance premiums for new policies through direct marketing channels in Q3/18, excluding one-year cancer insurance for eligible Rakuten
members which started from Q4/14.
+58.0%
YoY
New Business ANP: +58.0% YoY, driven by continuous and effective TV ads
New Business ANP in direct marketing channels*1: +64.1% YoY
Q3/18 Q3/18New Business
ANP Growth*2
Direct Marketing*1
New Business
ANP Growth*3
+64.1%
YoY
![Page 38: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/38.jpg)
38
・Complementary Insurance
・Casualty insurance to members
・Golfer’s Insurance
・Travel Insurance
・Super Simple Insurance (e.g. Bicycles)
・Extended warranty for home appliances
・Group insurance for merchants
・Cross-sales within RakutenInsurance Holdings (e.g. Pet Insurance)
・Fire insurance for
homeowners
Promote and expand insurance products for Rakuten Group services
![Page 39: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/39.jpg)
39
![Page 40: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/40.jpg)
40
+12.1% YoY(JPY bn)
*Domestic E-Commerce GMS includes consumption tax. Consumption tax not included in GMS for businesses not required to pay consumption tax.
GMS comprises Ichiba, Travel GTV on checkout basis, Books, Golf, Ticket, Brand Avenue, Dream businesses, Rakoo, Beauty, Mart, Delivery,
Rakuten Direct, Car Life, Rakuten Pay, Coupon, Rakuma, Rakuten Delivery Premium, Rebates, Raxy, Rakuten Seiyu Netsuper, etc. *Definition of GMS for first party businesses was revised mainly upon the merger between Soukai Drug and Kenko.com. This has resulted in retroactive
adjustments to Domestic E-Commerce GMS
Successful marketing by Rakuten Ichiba accelerated GMS growth
![Page 41: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/41.jpg)
41
(JPY mm)
* Domestic E-Commerce = Ichiba, Travel, Books, Golf, Ticket, Brand Avenue, Dream businesses, Rakoo, Beauty, Mart, Delivery, Rakuten Direct, Logistics
Car Life, Rakuten Pay, Coupon, Rakuma, Rakuten Delivery Premium, etc.
C2C commission starting in Jun 2018 contributed to QoQ growth of Operating Income
Revenue
+5.2% YoY
Operating Income
-15.8% YoY
![Page 42: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/42.jpg)
42
In Fashion E-Commerce, Rakuten Brand Avenue, showed strong growth due to successful marketing
Continued proactive investments in marketing such as TV commercials
GMS YoY
+36.6%
+57.6%
+94.9%
![Page 43: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/43.jpg)
43
Offers last one mile delivery
services
Offers a comprehensive logistics
service for Rakuten Ichiba
merchants
Expanding C2C platform through
flea market app
Logistics C2CNetsuper
Grand opening:
October 25, 2018
Continuing strategic investments for business growth, expanding the Rakuten Ecosystem
![Page 44: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/44.jpg)
44
Rapid expansion of delivery areas for “Rakuten Express”,
an original delivery service operated by Rakuten. Population
coverage reached 15% as of Oct 2018 (2% as of Nov 2017)
Expansion of products eligible for unattended delivery services
like “Oki-hai”, which allows delivery staff to leave parcels at the
door when customers are not at home, reducing redeliveries
New distribution centers in
Nagareyama (Chiba Prefecture) and Hirakata (Osaka Prefecture)
Expansion of “Rakuten Super Logistics”, a comprehensive
logistics service for Rakuten Ichiba merchants
Expansion
of
“Last One Mile”
areas
Expansion
of
distribution
centers
![Page 45: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/45.jpg)
45
Grand Opening: October 25, 2018
Jointly-operated online grocery delivery service that combines Rakuten’s roughly 100 million-
strong membership* base and proficiency in e-commerce, along with Seiyu’s extensive
experience in the sale of fresh food and other supermarket operational experience
* As of Sep 2018. Members who logged in one or more times after registration (domestic only, excluding membership withdrawals).
![Page 46: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/46.jpg)
46
![Page 47: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/47.jpg)
47
Utilizing each other’s assets to promote service competition and improve customer convenience
*
![Page 48: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/48.jpg)
48
![Page 49: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/49.jpg)
49
MNO 4G
Bandwidth
Allocation
Comprehensive
agreement with
KDDI
Service
Launch
Nov Oct
Vendor
Selection
2018 2019 2020
Apr
On track for service launch in October 2019
![Page 50: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/50.jpg)
50* JPY 526.3bn capex for 10 years (2018 - 2028) + spectrum transfer cost
BackhaulRAN Core
network
BSS/
OSS
Hardware
Laboratories Plan as of
Feb 2018
Latest
forecast
JPY 600 billion*
Vendor Line-up 4G Capital Expenditure forecast
![Page 51: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/51.jpg)
51
〈Number of Outdoor Base Stations〉
Accelerating base station deployment (Commitment to MIC: 27,397 sites by March 2026)
Accelerate deployment
Mar/20 Mar/21 Mar/22 Mar/23 Mar/24 Mar/25 Mar/26
![Page 52: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/52.jpg)
52
Site acquisition activity
All Rakuten group companies to support base station development Accelerating the plan for early deployment of Rakuten’s own network
![Page 53: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/53.jpg)
53
Opened 101 shops in Q3/18 (Jul 1 to Oct 18): 6 partner shops, 95 shop-in-shops
Total 358 shops (8 direct shops, 65 partner shops, 285 shop-in-shops ) as of Oct 18
Shop network expanded to all prefectures since Oct 18th
![Page 54: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/54.jpg)
54
![Page 55: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/55.jpg)
55
Strategy expanding to external advertisers (+22.7% YoY)
Rakuten Data Marketing (for external advertisers) has continued to receive strong orders
Average growth rate in ad revenue* is accelerating (+15.5% YoY)
[Advertiser]External(National Brands)
Internal(Ichiba Merchants, etc.)
External
+22.7% YoY
2017
Advertising
Revenue
JPY 79bn*
+41.4% YoY
Q3/18 Order Amount
[Inventory]Internal
(Rakuten Site)
* Revenue includes internal transactions
(Joint Venture between Rakuten and Dentsu)
![Page 56: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/56.jpg)
56
Awareness Interest Action RepeatBoost
Loyalty
Consumer behavior
Basic
Real
Digital
Pro
gra
mm
atic
RMP - Trading Desk
RMP – AdRoll :Performance Ad platform utilizing Rakuten data
RMP – Premium AD RMP – Affiliate
RMP – Tie up RMP – Direct Message
RMP – Scene Sampling
RMP – Direct Message (DM)
![Page 57: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/57.jpg)
57
Awareness Interest Action RepeatBoost
Loyalty
Consumer behavior
Co
mp
osite
O2O
Ichiba
synergy
RMP – Brand Gateway
RMP – Showroom
RMP – Cross Media Reach
Deliver various products to meet the diverse
needs for marketing activities
Cross media
Lead
acquisitionRMP – Customer Expansion
RMP – Go! Spot
![Page 58: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/58.jpg)
58
Provide a world-class performance advertising platform to clients in the Japanese market
Deliver “Rakuten AdRoll Product” combining Rakuten’s big data with AdRoll Group’s expertise
[Advertiser]External(National Brands)
[Inventory]
Internal(Rakuten Site)
External
Current
Advertising
Revenue
Internal(Ichiba Merchants, etc.)
![Page 59: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/59.jpg)
59
![Page 60: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/60.jpg)
60
+1,438
ROI
+78%IRR
+26%
Initial Investment(2012 to Date)
Fair Value(as of end of September 2018)
3,271
(USD mm)
1,833
![Page 61: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/61.jpg)
61
Fair values of listed and unlisted shares are calculated in accordance with accounting standards
Listed
stocks
Unlisted
stocks
Calculated at the closing market price on the last day of the
accounting period
Calculated at the prices of recent arm’s-length transactions or equity
financing
Calculated using comparable companies, or by other appropriate evaluation
methods (in absence of above information)
![Page 62: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/62.jpg)
62
(IFRS, JPY bn)
Q3/17 Q3/18 YoY
Non-GAAP Operating Income 57.8 52.1 -9.9%
Amortization of Intangible Assets (PPA) -2.1 -3.3 -1.3
Stock Based Compensation -1.8 -1.8 +0.1
One-off items -2.4 -3.1 -0.7
IFRS Operating Income 51.5 43.9 -14.9%
![Page 63: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/63.jpg)
63
(JPY bn)
*1: Rakuten, Inc., Rakuten Bank, Ltd., Rakuten Card Co., Ltd., Rakuten Securities, Inc., Rakuten Life Insurance Co., Ltd., and Rakuten General Insurance Co., Ltd.
are based on IFRS non-consolidated balance sheets.
*2: Bonds and borrowings = Corporate bonds + CP + Borrowings.
![Page 64: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/64.jpg)
64
Operating CF
(Excl. Tax)
Change in
assets &
liabilities
Increase in cash and
cash equivalents
+37.9
Increase in cash and
cash equivalents
+106.0
Tax
Profit (adjusted
Increase in cash and
cash equivalents
+2.8
Tax
700.9
847.6
Balance of cash
Dec 31, 2017
Balance of cash
Sep 30, 2018
(JPY bn)
Non-Financial Businesses Financial BusinessesM&A,
investments* Common
OperatingInvesting Financing Investing FinancingOperating
Change in
investment
securities
Other
investing CF
* “M&A and investments” includes “Increase and Decrease in restricted deposits”, “Purchase of investment securities” “Acquisition of investments in associates
and joint ventures” and “Proceeds from sales and redemption of investment securities” of Non-Financial activities in addition to “Acquisition of subsidiaries”
![Page 65: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/65.jpg)
65
Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 YoY
Rakuten Card 1,077,372 1,222,083 1,217,549 1,263,110 1,317,899 22.33%
Stage 1 (Normal) 1,011,882 1,151,449 1,148,457 1,196,212 1,248,131 23.35%
Stage 2 (1-2 months delinquent) 8,255 10,613 11,541 8,876 10,040 21.62%
Stage 3 (3 months-and-over-delinquent/Restructured Loans) 57,235 60,022 57,551 58,023 59,727 4.35%
380,470 379,549 388,818 387,696 387,662 1.89%
Stage 1 (Normal/Credit gurantees*2
) 347,481 346,454 352,702 350,442 349,683 0.63%
Stage 2 (30 days-and-over-delinquent/Credit gurantees*2
) 179 128 161 175 195 9.17%
Stage 3 (Foreclosed credit guarantees) 32,810 32,967 35,954 37,079 37,784 15.16%
Others 1,656 1,623 1,563 1,504 1,472 -11.10%
Total balance of loan receivables 1,459,498 1,603,255 1,607,929 1,652,310 1,707,032 16.96%
Allowance for doubtful accounts*3 35,667 34,955 86,560 86,412 88,519 148.18%
Write-off for bad debt*4 7,848 8,165 8,395 8,222 7,366 -6.14%
Rakuten Bank Super Loans
Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 YoY
Expenses related to doubtful accounts 7,499 7,377 7,983 8,078 9,515 26.88%
Ratio of expenses related to doubtful accounts*1 2.08% 1.93% 1.99% 1.98% 2.27% -
(JPY mm)
*1: Ratio of expenses related to doubtful accounts= (Expenses related to doubtful accounts) / (average of total balance of loan receivables at beginning and end of the period) × 4
*2: Balance of Rakuten Bank Super Loans guaranteed by Rakuten Card*3: Including allowance for credit guarantees from Q1/18*4: Write-off for bad debt includes loss on transfer of loan receivables
![Page 66: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/66.jpg)
66
69.3%Up 5.1 Points YoY
* Mobile GMS Ratio = Ichiba mobile GMS / Total Ichiba GMS (includes feature phones, smartphones, and tablets)
![Page 67: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/67.jpg)
67
Rakuten Card share of Ichiba GMS is consistently growing
51.7%51.9%
54.3%
53.5%
54.5%
55.9%
54.2%54.8%
55.8%
54.9%
55.6%
56.7%
54.9%
55.2%
58.1%
Jul/17 Aug/17 Sep/17 Oct/17 Nov/17 Dec/17 Jan/18 Feb/18 Mar/18 Apr/18 May/18 Jun/18 Jul/18 Aug/18 Sep/18
![Page 68: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/68.jpg)
68
* Includes Cartera acquired in Q1/17, ShopStyle acquired in Q2/17
(USD mm)+8.1%
YoY
1,352
2,564
1,887
2,191 2,177
3,682
2,3292,503
2,354
Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18
![Page 69: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/69.jpg)
69
11.1
19.1
7.9
14.813.0
25.3
10.8
21.7
13.8
Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18
+6.0%
YoY
* Includes Cartera acquired in Q1/17, ShopStyle acquired in Q2/17, and Rebates
(USD mm)
![Page 70: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/70.jpg)
70
Operating Income
USD -5.3mm YoY
(USD mm)
Revenue
-1.6% YoY60.7
79.7
59.0 59.8 60.4
81.0
59.7 60.9 59.4
4.8
21.3
1.2 3.6 2.4
20.9
1.3
-4.5 -2.9
Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18
![Page 71: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/71.jpg)
71
920 950 980 1,007 1,030 1,052
Jun/17 Sep/17 Dec/17 Mar/18 Jun/18 Sep/18
(Million IDs)
* Unique IDs: Unique phone numbers excluding deactivations
![Page 72: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/72.jpg)
72
Q3/17 Q3/18
Content
42%
Telco
58%
Content
54%
Telco
46%
Total revenue
+62.3% YoY
* Telco: Viber Out, In. Content: Service messages, ads, stickers and others
Monetization accelerating on strong growth in both Telco (Viber In/Out) and content revenues
![Page 73: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/73.jpg)
73
![Page 74: November 8, 2018 Rakuten, Inc. - global.rakuten.com · ・1x point* for investments in Rakuten Securities using points Accelerate Cross-use Expand Asset Business Attract customers](https://reader031.vdocuments.us/reader031/viewer/2022022805/5cb25d3488c993045a8bd066/html5/thumbnails/74.jpg)