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1. 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.

2. 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

3. 1 Company Profile
2

4. 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

5. 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

6. 2 Business Model of Rakuten Ichiba
5

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 3 Growth Strategy of Rakuten Eco-System
17

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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

26. 4 Snapshot of Major Non-financial Services
25

27. 4 -1. Snapshot of Major Non-financial
Services
– Rakuten Travel
26

28. 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

29. 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

30. 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

31. 4 -2. Snapshot of Major Non-financial
Services
– Advertising Business
30

32. 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

33. 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

34. 5 Expansion into Financial Businesses
33

35. 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

36. 5 -1. Expansion into Financial Businesses
– Consolidation of eBANK
35

37. 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

38. 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

39. 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

40. 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

41. 5 -2 Expansion into Financial Businesses
– Rakuten KC
40

42. 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

43. 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

44. 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

45. 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

46. 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

47. 6 Overview of Consolidated
Financial Results in 2008
46

48. 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

49. 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

50. 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

51. 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

52. 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

53. 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

54. Appendix
53

55. 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

56. 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

57. 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

58. 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

59. 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

60. 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

61. 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

62. 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

63. 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

64. 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

65. 64