Rakuten Business Model 2009

Overview of Rakuten Group March 2009 Rakuten, Inc. This presentation includes forward-looking statements relating to our future plans, targets, objectives, expectations and intentions. The forward-looking statements reflect management’s current assumptions and expectations of future events, and accordingly, they are inherently susceptible to uncertainties and changes in circumstances and are not guarantees of future performance. Actual results may differ materially, for a wide range of possible reasons, including general industry and market conditions and general international economic conditions. In light of the many risks and uncertainties, you are advised not to put undue reliance on these statements. The management targets included in this presentation are not projections, and do not represent management’s current estimates of future performance. Rather, they represent targets that management strive to achieve through the successful implementation of the Company’s business strategies. The Company may be unsuccessful in implementing its business strategies, and management may fail to achieve its targets. The Company is under no obligation – and expressly disclaims any such obligation – to update or alter its forward-looking statements.

Contents 1 Company Profile 2 Business Model of Rakuten Ichiba 3 Growth Strategy of Rakuten Eco-System 4 Snapshot of Major Non-financial Services 5 Expansion into Financial Businesses 6 Overview of Consolidated Financial Results in 2008 Appendix – Balance sheets and other financial data – Japanese Internet service market and Rakuten’s market share 1

1 Company Profile 2

Company Profile Founded: February 7, 1997 IPO: April 19, 2000 (Jasdaq Stock Exchange) Chairman & CEO: Hiroshi Mikitani The First Office: Atago in Tokyo, Japan Employees : 5 (at the establishment) Business: Rakuten Ichiba (online mall) 3

Company Profile (Continued) New Office: Rakuten Tower (Tokyo, Japan) Employees: 4,874 (as of Dec. 2008) Market Cap: 662 Billion yen or US$6.8 Billion (JASDAQ, as of Feb 27, 2009) Businesses: Rakuten Ichiba, Rakuten Travel, Rakuten Securities, Rakuten Credit, Rakuten KC, etc. 4

2 Business Model of Rakuten Ichiba 5

Unique Business Model - Rakuten Ichiba C to C B to B (merchant) to C B to C Marketplace Marketplace Inventory Model UGC User (merchant) Generated Content Ultimate long tail 6

Snapshot of Rakuten Ichiba Rakuten Ichiba: The Largest Online Shopping Mall in Japan Proprietary search engine by Number of Customer Reviews Price “My Rakuten” Payment methods Customized personal page A Large Variety of Merchandise Link to Other More than 29 million products Rakuten Services from over 26,000 merchants Securities Credit Card (KC) Credit New Revenue Sources Travel Credit card processing services Books Advertising Infoseek (Portal) * As of December, 2008 7

Consumer Benefits at Rakuten Ichiba Consumer Benefits Large Variety of Product Line-up Price Competitiveness & Price Transparency Reward Program (Rakuten Super Point) Solid Security 8

GMS (Rakuten Ichiba and Rakuten Books) GMS for Rakuten Ichiba & Books maintains growth by +21.4% (YoY) GMS (Billion Yen) # of orders (Million) 250 25.41 Number of orders 25 21.98 21.74 200 194.22 19.97 20.26 GMS* 20 17.08 16.87 159.97 158.79 158.76 15.79 15.43 152.02 150 15 129.40 127.41 4% 12.51 12.53 130.52 120.15 +21. 10.49 10.90 99.88 101.54 G MS 100 % 8.26 27.3 10 rs + 8.23 91.51 95.66 e 70.54 71.14 of ord # 50 5 0 0 05/Q2 05/Q3 05/Q4 06/Q1 06/Q2 06/Q3 06/Q4 07/Q1 07/Q2 07/Q3 07/Q4 08/Q1 08/Q2 08/Q3 08/Q4 * GMS ＝Mall(Fixed-price, Group Buy), Mobile (Fixed-price, Group Buy)and Rakuten Books 9

Rakuten Ichiba Buyer Metrics Growth continues for the unique buyers (+21.0% YoY) As a result of an increasing number of consumers buying everyday household products (e.g. kitchenware, beverages, cosmetics), price per transaction is pushed down while average number of transactions per buyer increased 2007/Q1 2007/Q2 2007/Q3 2007/Q4 2008/Q1 2008/Q2 2008/Q3 2008/Q4 Unique buyers 4,730 5,140 5,180 5,810 5,950 6,330 6,370 7,030 (‘000)* # of Transactions 14,410 16,140 15,800 18,690 18,850 20,780 20,650 24,190 (‘000) Average # of Transactions 3.05 3.14 3.05 3.22 3.17 3.28 3.24 3.44 per Buyer Average Price per Transaction (yen) 8,092 7,814 7,822 8,298 7,804 7,443 7,506 7,844 Quarterly GMS Per Buyer (yen) 24,649 24,527 23,827 26,687 24,726 24,413 24,327 26,969 * Unique Buyers: Number of buyers sorted by email address with purchasing records during the listed 3 month period. 10

Merchant Benefits at Rakuten Ichiba Merchant Benefits Easy-to-use System Huge Buyer Traffic (47 million members) Expertise for Internet Business (consultation capability) Solid Security 11

Number of Merchants Constant growth, surpassing 26,000 shops during 08/Q4 (Shops) 30,000 Total number of merchants 26,223 25,410 24,273 25,000 23,176 22,396 21,333 20,574 19,539 20,000 18,637 17,910 16,472 15,781 15,157 15,000 13,833 12,409 11,312 10,000 5,000 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 /Q /Q /Q /Q /Q /Q /Q /Q /Q /Q /Q /Q /Q /Q /Q /Q 05 05 05 05 06 06 06 06 07 07 07 07 08 08 08 08 12

Consultation Capability Rakuten University Offline seminars providing know-how based on real cases Monthly publication for merchants Average Monthly Sales per Merchant “DREAM” Monthly Publication for Merchants 4 Interviews with shop owners 3.1 Rakuten 3 University Effect 2 1.0 1 0 Rakuten Rakuten Merchants not Merchants taking taking courses courses 13

Merchant Sales Growth Sales per merchant 一店舗当り売上高の推移 (Million Yen) （百万円） 30 27.3 26.2 25.1 25 23.4 20.9 20 15 10 5 0 2004年 2004 2005年 2005 2006年 2006 2007年 2007 2008年 2008 *Sales of per merchant = GMS of Rakuten Ichiba, Rakuten Books / # of merchants 14

Rakuten Ichiba Quarterly Financial Results Sales (Conventional base) Sales Growth +26.7% (YoY), OP +51.1% (YoY) OP OP Margin (Conventional base) 25,000 55.4% 60% 48.1% 47.9% 44.9% 46.4% 44.5% *2 50% 20,000 19,060 41.0% 40.4% *2 *2 15,047 *2 15,404 15,877 40% 15,000 14,240 (Million Yen) 12,414 11,508 10553 30% 12,372 10,000 7,643 6,985 6,857 20% 5,508 5,551 5,090 5,748 5,000 10% 0 0% 07/Q1 07/Q2 07/Q3 07/Q4 08/Q1 08/Q2 08/Q3 08/Q4 *1 Sales adjusted to original base due to internal bookings change for Group Ads *2 Less contribution due to the integration of Rakuten Books (08/Q1 -140M, 08/Q2 -130M, 08/Q3 – 110M) *3 Fine Wine Business, Stuffed Animal Business and Greeting Card Business integrated into Rakuten Ichiba in 08/Q1 15

Expansion of Rakuten Ichiba into Asia International Shipping from Rakuten Ichiba Taiwan Rakuten Ichiba (Japan) Service available at Hong Kong, U.S, GMS of Rakuten Ichiba Taiwan has Taiwan, China, Australia, Singapore, shown rapid growth compared to U.K, Canada, Korea, New Zealand, Rakuten Ichiba in Japan during start-up Thailand, and Germany Foods, fashion and hobby items are Comparison of GMS during start-up popular among Asian consumers Taiwan Japan 61.0 41.0 21.0 1.0 1st 2nd 3rd 4th 5th 6th 7th 8th (month) *1:Start-up: Japan in 1997 May, Taiwan in 2008 May *2:GMS in Japan in 1997 May is 1.0 16

3 Growth Strategy of Rakuten Eco-System 17

Core Strategy Membership Business on the Internet The objective of Rakuten Group is to converge the Internet Services and the Membership Business Internet Service + Membership Business 18

Core Strategy Maximizing Lifetime Value of Members Maximizing Lifetime Value of Members Main income source: fees and commission from services Majority of Internet Focus on Conversion of Traffic into Revenue Main income source: advertising fee, etc. Companies 19

Rakuten Eco-system Strategy The diverse business portfolio supports Rakuten’s continuous growth in today’s volatile economy Customer Flow -Shopping mall -Auction Business Business E-Commerce Application Application Business Business -Hotels and Facilities Credit & Business Business -Air Tickets -Credit Application Application Payment Travel Application Application -Long Distance Bus -Consumer Loan -Dynamic Packages -Online Bank (new) Rakuten Membership Database Portal/ Business Business Business Business -Content Streaming Application Application Securities Application Application Content -Downloads Business Business Telecom -Stocks Application Application -Bonds -Trust Funds -IP Telephony -FX 20

Expanding Business Portfolio Over the past 10 years Rakuten has built a portfolio that will support “Everything Rakuten” to serve a wide array of user needs IP Telephony Communication Personal Loan Credit Card Online Bank Credit and Payment Online Security Brokerage Securities Online Hotel Reservation Dynamic Package Travel Portal Site Blog Internet Research Marriage Information BT Portal and Media Ad network Lead gen Internet Shopping Mall Online Book Store Mobile Auction Taiwan E-Commerce Rakuten 1997 2008 21

Rakuten’s Competitive Position in Japan E-Commerce1 Online Hotel Reservation2 Online Securities3 1 Rakuten Ichiba 1 Rakuten Travel 1 SBI Securities 2 Amazon 2 Jalan.net 2 Rakuten Securities 3 Yahoo! Shopping 3 JTB 3 Matsui Securities 4 - 4 Ikyu.com 4 Kabu.com 5 - 5 - 5 MBH Portal4 Blog5 Online Auction6 1 Yahoo! 1 Yahoo! blog 1 Yahoo! Auction 2 goo 2 Ameba blog 2 Bidders 3 Infoseek 3 Rakuten blog 3 Rakuten Auction 4 Livedoor 4 Livedoor blog 4 - 5 OCN 5 Excite blog 5 - Online Greeting Card7 Online Golf Reservation8 Online Books & Media Store9 1 Rakuten Greeting 1 Rakuten (GORA) 1 Amazon 2 Yahoo! Greeting 2 GDO 2 Rakuten Books / Ichiba 3 - 3 E*GOLF 3 7 and Y 1 By gross transaction volume in 2008, B-C business Source: Fuji Keizai 5 By page views, site, home panel in Sept. 2008 2 By gross transaction volume in 2007, domestic accommodation, 6 By gross transaction volume in 2008 Source: company releases Source: Nikkei MJ (Oct 15th, 2008) 7 By Sales. Source: Company Release, company data. (partly estimated) 3 By trading value of domestic equities for three months ended Sept 2008 8 By gross transaction volume for 3 months ended Dec. 31, 2008. Source: Source: company releases Company Release 4 Portal sites by page views, domain, home panel for Sept. 2008. 9 By gross transaction volume for 2008. Source: Fuji Keizai 2008 Source: Nielsen / Net Ratings 22

Growth in Number of Rakuten Members Rakuten members surpassed 47 million members 60 55.8 55 51.0 # of Rakuten Group 48.0 47.0 50 46.3 members 43.9 42.5 45 40.2 39.9 38.7 38.2 40 37.336.9 35.9 33.433.8 (million members) 32.5 35 30.831.332.5 31.8 30.0 28.128.328.829.2 27.3 30 25.9 25.6 23.8 23.9 22.0 22.4 25 20.4 19.1 18.8 16.217.3 20 15.9 14.6 # of Rakuten 14.0 12.8 15 members 10 6.8 7.8 5.5 4.6 5.1 5.8 3.0 3.5 4.0 5 1.7 2.0 2.3 2.6 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2002 2003 2004 2005 2006 2007 2008 * Rakuten Members : Members who have integrated IDs (e.g Rakuten Ichiba, Rakuten Travel, Infoseek, Rakuten greeting, etc) * Rakuten Group members:Rakuten members and members who have either un-integrated IDs with Rakuten securities, Rakuten KC, Rakuten Credit and etc, or un-integrated IDs for former-My trip.net service members etc. 23

User Retention and Acceleration of Cross-Use The Collaboration with the Rakuten Super Point Program has contributed in not only retaining users but also increasing the cross-usage rate of Rakuten services Retention by Rakuten Super Point Program Cross-Usage Rate Rakuten Eco-System 40% 36.5% Rakuten Super Point promotes repeated use 35% 33.3% 30% 28.7% Purchase 25% User Merchant, Rakuten services 20% Grant Rakuten Super Point 15% 2006 Dec 2007 Dec 2008 Dec * Ratio of buyers at Rakuten Ichiba on given months who have utilized other Rakuten services during the past 12 months * Applicable services are limited to those which can earn Rakuten Super Points (Excluding certain services, e.g. Securities Business) 24

4 Snapshot of Major Non-financial Services 25

4 -1. Snapshot of Major Non-financial Services – Rakuten Travel 26

Rakuten Travel Number one online hotel reservation service in Japan* # of hotels and facilities: 20,000 in Japan and 20,000 overseas as of December 2008 Joint Venture with ANA in domestic dynamic package tour Services provided also in English, Mandarin, Taiwanese and Korean By gross transaction volume in 2007, domestic accommodation Source: Nikkei MJ (15th Oct 2008) 27

Rakuten Travel Gross Booking Transaction Values 7,227 80 7,500 6,783 6,888 75 6,635 71.41 7,000 70 6,332 6,352 6,500 5,952 64.53 64.28 65 5,705 6,000 5,631 59.65 60.23 5,455 GTV (Billion Yen) 60 57.67 (1000 nights) 5,500 55 53.71 50.07 5,000 48.99 50 46.83 45 % YoY 4,500 + 11.5 40 GTV 4,000 35 3,500 30 3,000 25 2,500 06/Q3 06/Q4 07/Q1 07/Q2 07/Q3 07/Q4 08/Q1 08/Q2 08/Q3 08/Q4 GTV* Room Nights Booked * Travel GTV = Booking base = Domestic / International hotel room booking, International tickets、Domestic/ International DP、Domestic Bus, Rental car service 28

Rakuten Travel Quarterly Financial Results Significant OP margin improvement marking 51.3% (Million Yen) 6,000 60% 51.1% 51.3% 49.6% * 4,770 5,000 44.8% 45.7% * 50% 4,431 39.4% * * 4,000 3,786 3,744 3,775 40% 3,573 37.7% 3,116 35.8% 2,885 oY) 3,000 +24.0% (Y 2,439 30% Sales 2,273 1,879 2,000 20% 1,291 1,423 1,409 1,327 1,421 1,000 YoY) 10% +61 .3% ( OP 0 0% 07/Q1 07/Q2 07/Q3 07/Q4 08/Q1 08/2Q 08/3Q 08/4Q Sales *Sales adjusted to conventional base Operating profit OP Margin 29

4 -2. Snapshot of Major Non-financial Services – Advertising Business 30

Trend of Advertising Sales Online Ad Sales in E-Commerce and other sites grew by +23%(YoY) (Billion Yen) 10 9.0 9 8 7.3 7.2 6.9 7 6.3 5.7 5.7 6 5.2 Portal & Media 5 (Ads) Y) +23% (Yo 4 Ad S ales E-Commerce O nline (Ichiba ads) 3 2 1 0 07/Q1 07/Q2 07/Q3 07/Q4 08/Q1 08/Q2 08/Q3 08/Q4 31

Advertising Business : Our Challenge in 2009 Focusing on advertising business utilizing Rakuten database Utilizing purchase history in addition to behavior and attributes of Rakuten Members Expanding client base National clients Rakuten merchants Enhancing product line-up Ad Platform Behavioral Targeting (BT) Ad E-marketing solution (check out service, CRM, etc.) 32

5 Expansion into Financial Businesses 33

Outlook of Financial Related Services in Rakuten Rakuten Securities Online security brokerage business No.2 in Japan in trading volume Number of accounts: 810 thousands Rakuten KC Credit card business Number of total card holders: 3.2 million (Rakuten Card 1.7million) Shopping revolving balance: 39 billion yen Cash advances balance: 99 billion yen Loan card balance:80 billion yen Rakuten Credit Consumer loan business for upper-tiers Loan assets: 101 billion yen Interest rate : 6.9% ~17.8% To be merged into eBANK on April 1, 2009 eBANK Internet banking business Number of accounts : 3.0 million (No.1 in Japanese online bank) Deposit balance : 772 billion yen Succeeding accounts from alliance with Tokyo Tomin Bank * As of Dec.31 2008 34

5 -1. Expansion into Financial Businesses – Consolidation of eBANK 35

eBANK Top-class Online Bank No. 1 ranking in the number of accounts No. 2 in the balance of deposits Accounts Deposit balance (Thousand) ( Billion Yen) eBANK 3,005 772.6 Japan Net Bank 1,940 448.4 Sony Bank 711 1,315.6 SBI Sumishin Net Bank 333 551.9 Source :Company data as of 2008 December 36

Reduction of Risk Assets at eBANK The volume of risk assets at eBANK has been reduced prior to the consolidation B/S as of Mar.31st 2008 B/S as of Dec.31st 2008 (Billion yen) JGB Deposits JGB Deposits 577.1 758.9 609.1 771.8 Non-JGB Non-JGB 94.5 158.1 Other fixed assets Total assets Net assets 16.3 Total assets Net assets 810.1 813.5 10.1 Reduction of Risk Assets 80 Risk Assets (Billion Yen) CDO (collateralized debt 60 51.0 obligation) 2.0 10.1 40 FOF (fund of funds) Allowances 20 38.9 13.0 Real estate based assets 1.9 0 Mar.31st 2008 Dec.31st 2008 37

eBANK Joins Rakuten group Date Event Ownership February 10, 2009 Became Rakuten’s subsidiary after “Major 46.4% Shareholder Approval” by FSA Preferred shares subscribed in Sep. 2008 at 19.9billion yen converted into common stocks Consolidation into Rakuten Group started from January 1, 2009 March 19, 2009 Additional capital injection 56.5% (scheduled) Total 9.99 billion yen April 1, 2009 Integration with personal loan business of 67.2% (scheduled) Rakuten Credit 38

eBANK: Strategy at Rakuten Group Entry into personal loans Reduce funding costs by replacing Rakuten Credit borrowings into eBANK customer deposits Utilize capabilities of personal loans from Rakuten Credit Access to 3 million account holders Provide user-friendly payment services to Rakuten Rakuten Ichiba (automatic debit service at Rakuten merchants) Electrical money “Mail money” Rakuten Securities (real time settlement) Succeed accounts from alliance with Tokyo Tomin Bank Terminate non-performing alliance business 39

5 -2 Expansion into Financial Businesses – Rakuten KC 40

Strengths of Rakuten Card Rakuten Card driving Rakuten KC’s growth Value to Consumers Grant double points (2%) for shopping at Rakuten Ichiba Grant 1% point for usage outside of Rakuten Ichiba Full–guarantee of undelivered items for Rakuten Ichiba items Free annual fee (white card) Strengths of Rakuten Card Accelerates the shopping amount at Rakuten Ichiba Allows lower customer acquisition cost through group synergies High quality of credit High active ratio Rakuten Card Rakuten Premium Card 41

Rakuten KC Credit Card Shopping Transaction Volume (Billion Yen) 139.2 130 123.7 115.3 110 102.1 104.2 89.3 90 84.9 78.6 YoY + 36.3% 70 50 07/Q1 07/Q2 07/Q3 07/Q4 08/Q1 08/Q2 08/Q3 08/Q4 42

Rakuten KC Shopping Revolving Balance (Billion Yen) 45 38.9 YoY 40 35 +88.7% 32.7 30 27.2 25 22.6 20.6 20 18.6 15.9 17.1 15 10 07/Q1 07/Q2 07/Q3 07/Q4 08/Q1 08/Q2 08/Q3 08/Q4 43

Rakuten KC Quarterly Results Operating profit recovered remarkably due to decrease in costs relating to interest repayment claims and doubtful accounts (Million Yen) 18,000 16,000 15,216 15,478 15,040 14,707 14,627 14,098 13,944 14,147 14,000 12,000 10,000 8,000 6,000 3,816 4,000 3,254 2,798 2,538 2,000 * 46 217 498 -604 0 07/Q1 07/Q2 07/Q3 07/Q4 08/Q1 08/Q2 08/Q3 08/Q4 -2,000 Sales Operating profit *Excluding cost related to interest repayment of lump sum allowance (24,520 million yen) in 2007/ Q4 44

Allowance for Loss on Interest Repayments “Kabarai” Claims Allowance is equivalent to 3.2 times*1 of recent annualized actual interest repayment “kabarai” losses, well reserved compared to the other consumer finance companies in the range of 0.9 - 2.4 times (Billion Yen) Dec.31, Mar.31, Jun.30, Sep.30, Dec.31, Items in B/S Notes 2007 2008 2008 2008 2008 Allowance for loss ‘Cash-Out’ amount on interest by interest repayments 20.0 18.9 17.8 16.5 15.3 3.2X *1 repayments Write-offs of principal by interest repayment 18.0 17.0 16.1 15.1 14.0 claims Allowance for (ordinary) allowance for doubtful accounts doubtful accounts 26.8 25.9 25.1 24.4 22.0 (Billion Yen) 07/ 08/ 08/ 08/ 08/ Actual losses Oct-Dec Jan-Mar Apr-Jun Jul-Sep Oct-Dec ‘Cash-Out’ amount 1.1 1.2 1.2 1.2 1.2 by interest repayments Write-offs of principal by interest 0.8 1.0 1.0 1.0 1.1 repayment claims *1: Allowances (15.3+14.0) / Annualized actual losses((1.2+1.1)x4) = 3.2 45

6 Overview of Consolidated Financial Results in 2008 46

FY2008 Financial Results Operating profit and ordinary profit recorded high (Billion Yen) FY07 FY08 Comparison (Jan-Dec 07) (Jan-Dec 08) YoY Sales 213.93 249.88 +16.8% Operating Profit 24.63*1 47.15 +91.4% Ordinary Profit 26.89*1 44.53 +65.6% EBITDA* 44.14*1 66.79 +51.3% *1 Excluding cost regarding to interest repayment of lump sum allowance (24.52 billion yen) in 2007/ Q4 *2 EBITDA=(Ordinary Profit) + (Interest expenses) + (Depreciation) + (Amortization of goodwill) – (Effect of securitized loans receivables) 47

FY2008 Financial Results by Major Businesses (Billion Yen) FY2007 FY2008 (January – December) (January – December) Core Businesses Sales OP OPM Sales YoY OP YoY OPM Rakuten Ichiba 51.3 23.1 45.1% 63.0 +22.8% 30.8 +33.1% 48.9% Rakuten KC 60.4 -24.3 -40.3% 56.8 -6.0% 12.4 - 21.8% Rakuten Travel 13.3 6.0 44.9% 16.5 +23.9% 7.4 +24.3% 45.1% Rakuten Securities 29.9 6.1 20.4% 24.6 -17.5% 4.9 -19.6% 19.1% Holdings Consolidated 213.9 0.1 0.1% 249.8 +16.8% 47.4 - 18.9% *Sales of Rakuten Ichiba and Rakuten travel are indicated as gross figures based on the original accounting base *Rakuten Travel includes consolidated subsidiaries 48

OP / OP Margin Improvement Outstanding OP margin improvement 25 24.9% 25% (OP Margin) 20.1% 20 20% 17.7% Operating Profit (Billion Yen) 16.3 14.4% 0.5 15 2.3 15% 12.7% 12.0% 12.1% 12.5 Operating Profit 11.1 1.5 3.5 *2 Others 10 *1 1.6 10% Travel 2.4 7.8% 7.2 1.4 Credit & Payment 7.3 4.9*1 6.2 0.5 6.3 1.3 2.2 E-commerce 1.4 2.5 0.8 1.4 0.8 0.0 2.5 OP Margin(%) 5 1.3 1.9 10.0 5% 6.0 5.6 6.4 4.5 5.3 3.8 4.0 0 -0.3 -0.2 -0.1 -0.7 0% -2.4 -5 -5% 2007/Q1 2007/Q2 2007/Q3 2007/Q4 2008/Q1 2008/Q2 2008/Q3 2008/Q4 *1:Excluding cost regarding to interest repayment of lump sum allowance (24.52 billion yen) in 2007/ Q4 *2:Others include Securities, Portal and Media, Telecommunications, Professional Sports and Internal Eliminations. 49

Project V: Review of Cost Structure Growth in sales and success of Project V Operating expense down by 2.95 billion yen (-5.6%) (4Q vs. 1Q) （Unit：Million Yen） 70,000 65,697 62,291 62,370 Sales +10.4% 59,522 60,000 52,309 51,238 49,822 *1 49,362 50,000 Operating expenses -5.6% 40,000 30,000 20,000 10,000 0 08/Q1 08/Q2 08/Q3 08/Q4 *1:OP expense for new consolidated subsidiaries approx. 2.0 billion yen Decrease of costs for doubtful accounts by approx. 0.6 billion yen regarding sales of loan at Rakuten KC 50

FY 2008 Rakuten Group: Profit and Loss Operating Ordinary profit profit (Unit : Billion Yen) 47.1 44.5 Securities, etc Travel Non operating Special profit profit C&P write down of securities EC TBS,etc Loss before Taxes Net Loss -34.9 -54.9 Reserve for business restructuring Banking KC Other Special Corporate Impairment loss tax etc Loss Rakuten, Inc. Tax effect Special loss 80.9 Travel KC, etc Securities etc Minority shareholders 51

Rakuten Eco-system Strategy The diverse business portfolio supports Rakuten’s continuous growth in today’s volatile economy Customer Flow -Shopping mall -Auction Business Business E-Commerce Application Application Business Business -Hotels and Facilities Credit & Business Business -Air Tickets -Credit Application Application Payment Travel Application Application -Long Distance Bus -Consumer Loan -Dynamic Packages -Online Bank (new) Rakuten Membership Database Portal/ Business Business Business Business -Content Streaming Application Application Securities Application Application Content -Downloads Business Business Telecom -Stocks Application Application -Bonds -Trust Funds -IP Telephony -FX 52

Appendix 53

Rakuten Group : Balance Sheet (As of the end of December 2008) Rakuten Group (Consolidated) (Billion Yen) Interest-bearing Debt 483.4 Rakuten, Inc. (Non-Consolidated) Rakuten Securities Rakuten KC Total Assets 1,086.9 Holdings Other 167.9 Liabilities 39.2 444.8 448.1 55.7 283.0 389.8 363.3 299.0 Total Net Rakuten Credit Assets 222.5 158.7 78.3 90.0 79.1 25.1 *Rakuten Securities, Rakuten KC, Rakuten Credit and Rakuten (non-consolidated) 28.5 2.4 also including internal elimination. 8.5 *Interest-bearing debt : Corporate bonds + CP + Short-term borrowings + Long-tem borrowings 54

OP and Ordinary Profit Trends （ Million Yen） OP (Million Yen) 50,000 47,151 Ordinary Profit (Million Yen) 44,531 40,000 35,826 34,885 * 30,406 *26,896 30,000 29,148 24,638 20,000 15,05915,474 10,000 4,750 2,550 4,438 1,046 1,605 2,241 2,376 968 1,408 118 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 *Excluding one time cost for allowance for losses on interest repayment claims ( 24.52 billion Yen) at Rakuten KC in 2007 55

Rakuten Ichiba Sales Breakdown The Advertising segment continues to dominate and expand *2 20,000 19,060 16,060 *2 (new base) 18,000 *2 15,877 15,404 *2 15,460 16,000 15,047 14,240 15,111 (new base) (new base) 7,410 Advertising 13,890 *2 (new base) 14,000 *2 5,648 6,924 (Million Yen) 12,372 12,414 5,447 12,322 *2 (new base) 11,508 4,722 5,232 12,000 5,695 5,154 (new base) 4,372 (new base) 9,714 9,855 (new base) Others 10,000 9,097 4,512 4,299 4,219 2,878 3,802 2,446 2,618 8,000 3,278 3,195 2,004 2,393 3,056 1,704 1,794 1,559 1,659 *1,3 Margin 6,000 1,141 1,261 1,140 6,243 4,996 4,741 5,091 5,119 4,005 3,807 4,103 4,087 4,000 3,113 3,161 2,801 2,000 2,098 2,181 2,237 2,244 2,238 2,265 2,311 2,351 2,382 2,419 2,490 2,527 Merchant Fixed Fee 0 2006/Q1 2006/Q2 2006/Q3 2006/Q4 2007/Q1 2007/Q2 2007/Q3 2007/Q4 2008/Q1 2008/Q2 2008/Q3 2008/Q4 *1 Start of charge for Standard-contract merchants of 1 million and below sales (monthly): introduced in FY06 Q1 *2 Sales adjusted to original base due to internal bookings change for Group Ads *3 Less contribution due to the integration of Rakuten Books (08/Q1 -140M, 08/Q2 -130M, 08/Q3 – 110M) *4 Fine Wine Business, Stuffed Animal Business and Greeting Card Business integrated into Rakuten Ichiba in 08/Q1 56

Market Share: Rakuten Ichiba Rakuten Ichiba growth (23.6%) is much higher than Japanese E-Commerce market growth (14.4%) from 2007 to 2008 (Unit: Million Yen) Market share % （） 3,500 30.0% 26.6% Market share of 2,917.7 3,000 24.7% Japanese BtoC EC 23.5% 2,723.1 25.0% 22.4% 2,491.8 2,500 20.0% 2,177.4 .4% 20.0% 2,000 1,805.7 ce +1 4 16.7% er 15.2% -C omm 1,500 14.4% 1,346.3 Jap an E .6% 15.0% ba +23 chi 1,000 950.0 uten I 675.1 Rak 663.8 8.5% 536.9 10.0% 464.8 423.4 500 316.9 300.9 209.3 189.9 17.8 45.7 70.7 112.4 0 5.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009E 2010E BtoC　EC market Rakuten Ichiba Rakuten share *Source : Rakuten, Inc. Calculations based on Fuji Economic Research [GMS/ecommerce business actual and trend 2008-2009] 57

E-Commerce Penetration Rate by Product Categories in U.S. and Japan Japanese E-commerce penetration rate is lower than U.S. High growth potential is expected to be continued 10% Japan 8% 3.6x Penetration Rate (%) U.S. 6% 4.3x 4% 6.9x 2% 2.9x 0% General Books, CD, Fashion Auto, Foods Medicine 1 2 3 4 5 6 Retail sports items furniture and goods and and home Cosmetics Source : METI toy appliances 58

Online Travel Booking in Japan Further potential growth of online travel business is expected Japanese Travel Business Market Total: 29.5 Trillion Yen Online Domestic Accommodation, Domestic 0.3 trillion yen Accommod ation, 4.3 (Share: 1%) Overseas, trillion yen 6.8 trillion yen Domestic Tours, 16.4 trillion yen Source: JATA-NET (Japan Association of Travel Agents), 2006 59

Rakuten Travel No.1 Online Reservation Site for Domestic Hotels Gross Transaction Value in Company Name Name of site 2007(Billion Yen) Rakuten Travel Rakuten Travel 220.0 Recruit Jalan Net 160.8 JTB Rurubu Travel 74.2 Ikyu Ikyu.com 30.6 Kinki Nippon Tourist Stay Plus 30.2 Nippon Travel Agency Tabi Plaza 16.0 *Source: 15th Oct 2008, Nikkei MJ 60

Internet Advertising Market in Japan Japan’s growing potential of advertising business Internet Advertising Market in Japan Japanese Ad Market (Billion Yen) Total: 7.0 Trillion Yen 800 755.8 Internet 689.8 Advertising, 620.4 600 0.5 trillion yen 543.4 453.4 6.5% 363.0 400 280.8 TV. Radio, 200 Newspaper, Magazine, etc., 6.6 trillion yen 0 2005 2006 2007 2008 2009 2010 2011 PC Mobile Ad Source : Dentsu Research Inc. April 2008 press release 61

Acquire Traffic and Customers Rakuten is the second largest Internet media in Japan Rank PVs Rank UU Domain by PVs (thousand) by UU (thousand) yahoo.co.jp 1 20,144,133 1 42,620 rakuten.co.jp 2 2,828,420 2 21,921 mixi.jp 3 1,600,330 41 6,195 youtube.com 4 1,481,370 5 19,708 google.co.jp 5 1,458,926 4 20,421 amazon.co.jp 18 428,330 10 14,598 Source: Month of September 2008, home panel, Net ratings, 62

Behavioral Targeting (BT) Advertising BT contributes to enhance the effectiveness and pricing of Ads Click Through Rate (CTR) Conversion Rate (CVR) 2 (General ad effectiveness Base as “1.0”) 4 (General ad effectiveness Base as “1.0”) 1.5 3.0 3 1.0 1 2 1.0 1 0 0 Rakuten Rakuten General General ad4U ad4U 63

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Rakuten Business Model 2009

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Rakuten Business Model 2009 — Presentation Transcript