Upload
lenguyet
View
212
Download
0
Embed Size (px)
Citation preview
55
Consolidated Revenue Global GTV Domestic EC GMS
Rakuten Card GTV Rakuten Securities Accounts
1.1 tn 3.4 tnJPY
7.5 tnJPY 3 mm
15.4 tn
7 mm
Rakuten Bank Accounts
JPY JPY
surpassedsurpassed
66
+10.5% YoY
Q4/18
Membership Value
JPY
Q4/17
Membership Value
Successful SPU program enhanced cross-use resulting in increase of active users, providing growth of
membership value
JPY
10
Fully-virtualized RAN:- End-to-end automation
- Programmable infrastructure
Rakuten overall architecture
Scalable 5G-readyLow cost/
investment
Agile to
upgrade servicesStable1 2 3 4 5
Rakuten
Hybrid CloudIPv6 based 5G Ready
Transport Network
for Backhaul
vRAN
4G/5G
vRAN
4G/5G
Internet
11
Total value creation throughout Rakuten ecosystem
Low CAC
Cross-use
Brand x Membership
Low cost
operation
Current cross-use
ratio:~70%
Membership in
Japan1:
103 million
Those who have
done KYC2 :
18 millionExpected
expansion of LTV
per user3 :
x4~6 High LTV
(Life Time Value)
12
Lean hardware & cell design
Low
CAPEX
Low
OPEX
•Simplified site design
•Standardized hardware
•Open source (No vendor lock-in)
•Standardized SKUs to <10
(vs. ~600 SKUs in traditional operators)
•Highly-efficient operation
•Full automation
•No need for site visit by
expensive engineers
Open, Virtualized, Disaggregated
RAN1
Common and Distributed Telco
Cloud with NFVI2
Regional Datacenter and Mobile
Edge Computing3
5G Systems Architecture based
design from day 14
5G Enabled IPv6
Transport/Mobile Backhaul5
SDN Enabled Centralized and
Regional Datacenter6
Common Hardware SKU’s7
End-to-End Infrastructure &
Service Automation8
United OSS/BSS9
We Dared to Make the Impossible, POSSIBLE
Completed in under 8 Months!
Content
B2B
Experience
Connectivity
Service Provider
Customer
Affiliation
Disruptive Architecture
Wants to Sell ExperienceSells Connectivity
Business Model &
Customer Affiliation (Rakuten ID, Credit Card
user base)
Software Centricity
New
Services
Content Leadership
Other Providers Rakuten MNO
Users
Radio
Infrastructures
Resiliency
Operations
Handset
Dedicated RAN
Legacy network
Hardware driven
Traditional NOC
Mobile, IOT, Enterprises
Virtualized RAN
Distributed Cloud Native
Microservices based
Virtualized iSOC
1717
Commencement of network testing in Futakotamagawa area in Tokyo as of February 3, 2019
The first real-world end-to-end test in a fully virtualized cloud native mobile network completed successfully
Mobile Network Test
19
4x4 MIMO2x Traditional Network
Cloud InfrastructureFully Virtualized Network
64
QAM
256
QAM
256 QAM25% More DL Capacity
Fully Automated
Network Operation
Best Interference
Management
Smooth Upgrade to
5G
Ultra Low Latency
20
Altiostar’s virtual RAN solution enabling end-to-end virtual RAN network
Building world’s first end-to-end virtual RAN Network
21
Announcement
of entry into
MNO business
4G spectrum
allocation from
MIC
5G trials
with Nokia
Collaboration
with Tech Mahindra
Comprehensive
agreement with KDDI
including roaming
5G trials at Rakuten
Seimei Park Miyagi
Construction of radio
stations started
End-to-end tests in
a fully virtualized
cloud native mobile
network
Dec/17 Oct/18
Nov/18
Dec/18
Apr/18 Feb/19
• 4K video
• 3D 360-degree
VR live streaming
• Remote delivery robot
• Drone-based identity verification
• 8K VR video streaming
Set up world-class 5G labs
in Tokyo and Bengaluru
Announcement of
strategic investment
to Altiostar
23
Aim to promote cashless payments
Rakuten, Inc.
Rakuten Mobile
Network Inc.
Rakuten Card
Co., Ltd.Rakuten
Payment, Inc.
Other domestic
and overseas
subsidiaries etc
Newly-established
24
Update of current Rakuten Pay App with all payment solutions embedded into one platform
Release scheduled on March 18, 2019
Rakuten Edy
(FeliCa Based e-money)
Rakuten Points and Rakuten Cash
can be used for payment
Credit Card (Rakuten Card / Visa/
Master) is linked background
Barcode & QR code Payment
Rakuten Point Card barcode
25
Under the “smart stadium concept”, Rakuten’s professional baseball and football club will roll out fully
cashless payment systems within their home stadiums
Payment by Rakuten Pay
Rakuten Seimei Park Miyagi
Noevir Stadium Kobe
Payment services by Rakuten
Debit (JCB/Visa)
2828
Domestic E-Commerce GMS growth accelerated in the latter half of 2018
Domestic E-Commerce GMS YoY
(% YoY)
*1 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, Coupon,
Rakuma, Rakuten Delivery Premium, Rebates, Raxy, Rakuten Seiyu Netsuper, etc. *2 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 as of Q3/17
29
Logistics network
Delivery services
Improving UX of
delivery
Growth of Rakuten Ichiba
and merchants
Promoting further growth of Rakuten Ichiba by expanding logistics network and delivery services
3030
Rakuten Fulfillment Center Nagareyama
Rakuten Fulfillment Center Hirakata
• Operation launch: January 18 2019
• Leased area: approx. 80,000 square meters
• Location: Nagareyama, Chiba
• Operation launch: January 21 2019
• Leased area: approx. 75,000 square meters
• Location: Hirakata, Osaka
• Operation launch: March 2019
• Operate Kantsu’s DC as RSL satellite
• Rakuten Express delivers parcels that Kantsu accepts from their clients
• Location: Amagasaki, Hyogo
Capital and strategic alliance
with Kantsu Co., Ltd
Ichikawa
Sagamihara( Rakuten Direct)
Kawanishi
Kashiwa(Rakuten Seiyu Netsuper)
31
2%
19%
Tokyo
Saitama
Chiba
Kanagawa
Osaka
(Rakuten Books)
Population
coverage*2
*1 The 23 wards of Tokyo and 14 cities in metropolitan Tokyo, 4 cities in Chiba Prefecture, Kawasaki and Saiwai in Kawasaki City in Kanagawa Prefecture,
the 24 wards of Osaka City as well as Sakai City in Osaka Prefecture, 6 wards of Saitama City and other 4 Cities in Saitama Prefecture.*2 From 2017 November to 2019 February(Planned)
Coverage Area*1 / Population Shipping Expansion
Other Services
“Oki-hai” for
reducing redeliveries
Specified delivery
time until 24:00
(Apparel)
3434
FY2017 FY2018 YoY
Revenue 944.5 1,101.5 +16.6%
Non-GAAP Operating Income 167.0 161.1 -3.5%
IFRS Operating Income 149.3 170.4 +14.1%
Revenue and IFRS Operating Income
at record highs
(JPY bn)
3535
Q4/17 Q4/18 YoY
Revenue 268.0 311.2 +16.1%
Non-GAAP Operating Income 33.4 18.8 -43.7%
IFRS Operating Income 29.2 36.9 +26.4%
(JPY bn)
Revenue at record high
3636
FY2017 FY2018 YoY
Domestic E-Commerce
Revenue 390.9 426.8 +9.2%
Operating Income 74.6 61.3 -17.7%
Communications & Sports
Revenue 90.0 111.0 +23.4%
Operating Income -6.2 -12.0 -5.9
Other Internet Services
Revenue 199.5 250.6 +25.6%
Operating Income 32.4 46.4 +43.5%
Internet Services Segment
Revenue 680.3 788.4 +15.9%
Operaing Income 100.8 95.7 -5.0%
FinTech Segment
Revenue 333.2 410.8 +23.3%
Operating Income 72.8 79.9 +9.7%
Adjustments
Revenue -69.0 -97.7 -28.7
Operating Income -6.6 -14.4 -7.9
Consolidated
Revenue 944.5 1101.5 +16.6%
Non-GAAP Operating Income 167.0 161.1 -3.5%
IFRS Operating Income 149.3 170.4 +14.1%
(JPY bn)
3737
(JPY bn)
Q4/17 Q4/18 YoY
Domestic E-Commerce
Revenue 105.7 122.1 +15.5%
Operating Income 19.0 13.8 -27.3%
Communications & Sports
Revenue 24.2 27.3 +13.1%
Operating Income -2.8 -5.5 -2.7
Other Internet Services
Revenue 67.7 82.8 +22.4%
Operating Income 1.4 -4.7 -6.0
Internet Services Segment
Revenue 197.6 232.2 +17.5%
Operaing Income 17.6 3.7 -79.0%
FinTech Segment
Revenue 89.4 108.1 +20.9%
Operating Income 19.6 19.1 -2.7%
Adjustments
Revenue -19.0 -29.2 -10.2
Operating Income -3.8 -3.9 -0.2
Consolidated
Revenue 268.0 311.2 +16.1%
Non-GAAP Operating Income 33.4 18.8 -43.7%
IFRS Operating Income 29.2 36.9 +26.4%
3838
(JPY bn)
Revenue YoYOperating
IncomeYoY
Card 187.1 +16.4% 33.1 +6.5%
Bank 82.5 +9.5% 25.7 +17.9%
Securities 59.7 +17.8% 21.2 +15.4%
Life Insurance 30.6 -5.6% 3.3 +89.6%
Others 18.6 +33.5% 0.0 + 0.18
FinTech Total excl. General Insurance 378.5 +13.6% 83.3 +14.4%
General Insurance 32.3 - -3.4 -
FinTech Total 410.8 +23.3% 79.9 +9.7%
3939
Revenue YoYOperating
IncomeYoY
Card 51.3 +19.1% 7.5 -7.8%
Bank 21.4 +8.5% 6.6 +13.0%
Securities 15.3 +5.0% 5.0 -15.1%
Life Insurance 7.5 -7.5% 0.9 +1.09
Others 6.6 +71.3% -0.5 -0.35
FinTech Total excl. General Insurance 102.2 +14.3% 19.6 -0.1%
General Insurance 5.9 - -0.5 -
FinTech Total 108.1 +20.9% 19.1 -2.7%
(JPY bn)
4040
Upfront investments for future growth・Mobile business investments, costs
・Logistics-related investments, costs
・NBA broadcasting rights*
・Partnership costs-0.5-1.8 +1.6
-4.6
-8.7
(JPY bn)
Other Internet
Services
Communication
and Sports(excl. Mobile business)
Domestic
E-commerce(excl. logistics
related investments,
costs)
FinTech
・Rakuten Brazil system
impairment loss
・Ebates, Rakuten France
rebranding costs
・Rakuten Marketing
reorganization cost
33.4
18.8
Q4/17
Gains from
Investment
business
2.1
1.5Q4/18
Gains from
Investment
business
Excluding upfront investments of existing business
31.326.0
Q4/17
Operating Income
Q4/18
Operating Income
Q4/17
Operating Income
(excl. gains from
investment business)
Q4/18
Operating Income
(excl. gains from
investment business,
upfront investments for
future growth)
* NBA broadcasting rights are included in “Other Internet Services”
4141
+1.8 -2.0
-4.9
Q4/17
Domestic E-Commerce
Operating Income
Growth of Marketplace
business・Rakuten Ichiba
・Rakuten Travel
・Rakuten GORA etc.
Investing phase business・Rakuma
・Rakuten Brand Avenue
・Rakuten Books
・Rakuten BIC
・Rakuten Seiyu Netsuper etc.
Logistics-related investments / costs
etc.
Q4/18
Domestic E-Commerce
Operating Income
(JPY bn)
4242
Profitable /
Loss improvement
businesses
Investing phase
businesses
Under brand
change process
FY2018 OI YoYQ4/18 OI YoYProfitable businesses Loss-making businesses
Deutschland
FranceJPY
-1.2bnJPY
-1.3bn
JPY
-0.3bnJPY
-2.7bn
JPY
+1.2bnJPY
+3.3bn
43
+1,422
ROI
+74%IRR
+24%
Initial investment(2012 to date)
Fair value(As of December 2018)
Gain
3,348
1,926
(USD mm)
4444
Investment business has shown a great track record in last three years and accelerated the exit
Evaluation gains from
investment business
Record high
Exit amount(JPY bn)
(JPY bn)
Book value
at year end (JPY)171bn 291bn 368bn
* including gains on sale of shares
4545
*1 Global Gross Transaction Value = Domestic E-Commerce GMS + Credit Card GTV + Edy GTV + Rakuten Pay GTV+ Rakuten Point Card GTV + Overseas E-Commerce GMS +
Ebates GMS + Digital Contents GTV + Rakuten Marketing GTV*2 Includes intercompany transactions for settlement and affiliate services
+20.4% YoY
(JPY tn)
4646
+12.9% YoY
*1 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, Coupon,
Rakuma, Rakuten Delivery Premium, Rebates, Raxy, Rakuten Seiyu Netsuper, etc. *2 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 as of Q3/17
(JPY bn)
47
Rakuten,
Inc.
Rakuten
Communications Corp.
Rakuten Card Co., Ltd.
Rakuten Edy, Inc.
Rakuten Insurance
Holdings Co., Ltd.
Rakuten Securities, Inc.
Rakuten Bank Ltd.
Rakuten Investment
Management, Inc.
Other Domestic and
Overseas Subsidiaries etc.
Rakuten Mobile
Network Inc.
Spotlight Inc.*
everybody’s
bitcoin Inc.
Rakuten,
Inc.
Rakuten Card
Co., Ltd.
Rakuten
Payment, Inc.
Other Domestic
and Overseas
Subsidiaries etc
Rakuten Mobile
Network Inc.
everybody’s bitcoin Inc.
Rakuten Edy, Inc.
Rakuten Investment
Management, Inc.
Rakuten Insurance
Holdings Co., Ltd.
Rakuten Securities, Inc.
Rakuten Bank
Ltd.
Rakuten
Communications Corp.
and others
Mobile
business
Internet
Services
business FinTech
business
Payment
business
~
50
* Revenue includes internal transactions. Revenue in 2017: JPY84.3bn(Revised from the figure disclosed in the 3rd quarter of 2018)
Revenue in 2018: JPY96.3bn (+14.2% YoY)*
Growth rate of revenue to external advertisers:+16.5% YoY
[Advertiser]External(National Brand)
Internal(Ichiba Merchants, etc.)
[Inventory]
Internal(Rakuten site)
External
+16.5% YoY
+13.2% YoY
51
* Revenue includes internal transactions
Strengthened industry specific sales structure
Accelerate growth trends through strong internal inventory revenue streams from Ichiba, Travel, etc., and
extension of business with external advertisers
[Advertiser]External(National Brands)
Internal(Ichiba Merchants, etc.)
External2018 Advertising
Revenue
96.3bn*
New Product[Inventory]
Internal(Rakuten Site)
RMP - Brand Gateway
RMP - Customer Expansion
RMP -AdRoll
Rakuten Ichiba
Rakuten Travel, etc.
RMP -Trading Desk
5555
(IFRS, JPY bn)
FY2017 FY2018 YoY
Non-GAAP Operating Income 167.0 161.1 -3.5%
Amortization of Intangible Assets (PPA) -7.8 -11.0 -3.2
Stock Based Compensation -7.5 -7.8 -0.3
One-off items -2.4 28.1 +30.5
IFRS Operating Income 149.3 170.4 +14.1%
5656
Q4/17 Q4/18 YoY
Non-GAAP Operating Income 33.4 18.8 -43.7%
Amortization of Intangible Assets (PPA) -2.1 -3.2 -1.1
Stock Based Compensation -2.1 -2.3 -0.2
One-off items 0.0 23.6 +23.6
IFRS Operating Income 29.2 36.9 +26.4%
(IFRS, JPY bn)
5757
*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
(JPY bn)
5858
* “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”
(JPY bn)
Non-Financial Businesses Financial Businesses M&A,
InvestmentsCommon
Operating CF
(Excl. Tax)
Tax
Profit (adjusted)
Change in
assets &
liabilities
Tax
Change in
investment
securities
Other investing CF
Investing FinancingOperating
Operating Investing Financing
Increase in cash and
cash equivalents
+206.5
Increase in cash and
cash equivalents
+74.2
Increase in cash and
cash equivalents
+8.7
700.9
990.2
Balance of cash
Dec 31, 2018Balance of cash
Dec 31, 2017
5959
+18.4% YoY
(JPY tn)
*1 Global Gross Transaction Value = Domestic E-Commerce GMS + Credit Card GTV + Edy GTV + Rakuten Pay GTV+ Rakuten Point Card GTV + Overseas E-Commerce GMS +
Ebates GMS + Digital Contents GTV + Rakuten Marketing GTV*2 Includes intercompany transactions for settlement and affiliate services
6161
Operating Income
-7.8% YoY
Revenue
+19.1% YoY
(JPY mm)
Operating Income -7.8% YoY due to increase in allowances for doubtful accounts after applying IFRS 9
standards and SPU related costs
6262
Card Shopping Transaction Value
* 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.
Shopping Revolving Balance
(JPY bn) (JPY bn)+23.8% YoY +21.8% YoY
6363
Shopping Revolving and Cash Advances Balance
(JPY bn)
Cash Advances
+21.9% YoY
Shopping Revolving
+21.8% YoY
* 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
6464
Shopping GTV exceeded 7tn in 2018
* Calculated on a managerial accounting basis, using different definitions from data in the Appendix.
Detailed credit card data is shown in the Appendix.
(JPY tn)
6565
*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
(JPY mm)
Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 YoY
Expenses related to doubtful accounts 7,377 7,983 8,078 9,515 10,403 41.0%
Ratio of expenses related to doubtful accounts*1 1.93% 1.99% 1.98% 2.27% 2.31% -
Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 YoY
Rakuten Card 1,222,083 1,217,549 1,263,110 1,317,899 1,502,530 22.9%
Stage 1 (Normal) 1,151,449 1,148,457 1,196,212 1,248,131 1,433,457 24.5%
Stage 2 (1-2 months delinquent) 10,613 11,541 8,876 10,040 8,862 -16.5%
Stage 3 (3 months-and-over-delinquent/Restructured Loans) 60,022 57,551 58,023 59,727 60,211 0.3%
379,549 388,818 387,696 387,662 387,863 2.2%
Stage 1 (Normal/Credit gurantees*2
) 346,454 352,702 350,442 349,683 350,184 1.1%
Stage 2 (30 days-and-over-delinquent/Credit gurantees*2
) 128 161 175 195 143 11.5%
Stage 3 (Foreclosed credit guarantees) 32,967 35,954 37,079 37,784 37,536 13.9%
Others 1,623 1,563 1,504 1,472 1,430 -11.9%
Total balance of loan receivables 1,603,255 1,607,929 1,652,310 1,707,032 1,891,823 18.0%
Allowance for doubtful accounts*3 34,955 86,560 86,412 88,519 88,741 153.9%
Write-off for bad debt*4 8,165 8,395 8,222 7,366 10,183 24.7%
Rakuten Bank Super Loans
6666
Operating Income +13.0% YoY due to increase in loan receivables balance
Revenue
+8.5% YoY
Operating Income
+13.0% YoY
(JPY mm)
6767
*1 Based on IFRS which includes derivatives in structured term deposits.*2 Other deposits include deposits in foreign currencies and others.
Other Deposits*2
+12.0% YoY
Time Deposits
+5.7% YoY
Ordinary Deposits
+34.2% YoY
(JPY bn)
6969
Marketing and SPU cost for user acquisition lowered OI growth
Operating Income
-15.1% YoY
Revenue
+5.0% YoY
(JPY mm)
7070
Successful SPU program and cross-use strategy triggered rapid growth in new account openings
(Thousands of accounts)
Rakuten Bank Rakuten Securities
(Thousands of accounts)
7171
Operating IncomeRevenue
(JPY mm) (JPY mm)-7.5% YoY +1,090mm YoY
Termination of reinsurance policies caused a decline in revenue, however insurance premiums continue to
show strong growth, resulting in OI +1,090mm YoY
7272
+40.2% YoY
New Business ANP: +40.2% YoY
New Business ANP in direct marketing channels*1: +10.9% YoY
Q4/18 Q4/18
New Business ANP Growth*2 Direct Marketing*1 New Business
ANP Growth*3
+10.9% YoY
*1 Internet & mail-order*2 Annualized insurance premiums for new policies in Q4/18, 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 Q4/18, excluding one-year cancer insurance for eligible Rakuten
members which started from Q4/14.
7373
• Online application for
Bicycle Insurance(2018/10/22~)
• Super Simple Insurance
• Extended warranty for home appliances
• Group insurance for merchants
• Complementary Insurance
• Casualty Insurance to Members
• Fire insurance for homeowners
• Online application for
Fire Insurance(2018/12/12~)
• Cross-sales within Rakuten
Insurance Holdings
(e.g. Pet Insurance)
• Online application for
Household Insurance(2019/2/1~)
• Golfer’s Insurance
• Travel Insurance
7575
(JPY tn)
+11.2% YoY
*1 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, Coupon,
Rakuma, Rakuten Delivery Premium, Rebates, Raxy, Rakuten Seiyu Netsuper, etc. *2 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 as of Q3/17
7676
* Domestic E-Commerce = Ichiba, Travel, Books, Golf, Ticket, Brand Avenue, Dream businesses, Rakoo, Beauty, Mart, Delivery, Rakuten Direct, Logistics
Car Life, Coupon, Rakuma, Rakuten Delivery Premium, etc.
(JPY mm)
Revenue
+15.5% YoY
Operating Income
-27.3% YoY
7777
* Mobile GMS Ratio = Ichiba mobile GMS / Total Ichiba GMS (includes feature phones, smartphones, and tablets
70.2%Up 6.0 Points YoY
7979
Data
Membership
ID
Reward
program
Rakuten’s assets and solutions
“Oki-Hai” delivery
Push notification of delivery
Japan Post and HAKO POST Pickup
Plenty of data of product
characteristics, price and
destination
Information of over
100mm Rakuten IDs
and many touch points
with users
Methods using Rakuten
Super Point as incentives
Allowing customers to designate
a location for delivered goods to
be left on their property when they
are absent
Sending push notification to
customers via Rakuten Ichiba app
and Viber app etc. to promote
acceptance of goods
Reduce redeliveries by giving points
to customers (Funded by savings
generated through logistical efficiency
improvements)
Q2/18~
Q4/18~
Q1/19~
Existing
shipping carrier
Limited access to users’
information and direct
touch point
Limited tools and
methods to impact
user behavior
Limited access to
data of product
characteristics
and destination
Promote Rakuten Ichiba growth by improving logistical efficiency
and UX improvement on delivery
8181
(USD mm)
USD-6.2mm
YoY
* Includes Cartera acquired in Q1/17, ShopStyle acquired in Q2/17, and Rebates
8585
* Telco: Viber Out, In. Content: Service messages, ads, stickers and others
Monetization accelerating on strong growth in both Telco (Viber in/Out) and content revenue
Content
44%
Telco
56%
Content
61%
Telco
39%
Total revenue
+36.1% YoY
86
In 2017, establishment of Rakuten materiality = list of
concerns that Rakuten has a responsibility to address to
realize long-term business growth
Concerns reflecting stakeholders’ voice (vertical axis) and
business strategy (horizontal axis)
Survey answered by ~2,500 stakeholders (employees,
business partners, end-users)
Based on results, redefinition of sustainability action plan
Improvement of sustainability reporting = ESG
(Environmental, Social, Governance) information disclosure
Redefinition of philanthropic activity priorities
Social innovation / Sustainable consumption / Local
communities / Humanitarian aid
Launch of projects based on new priorities
ex: “Earth Mall with Rakuten” for sustainable
consumption
87
In 2018, improvement of ESG information disclosure – corporate website, FY2017 corporate report -
positively recognized by MSCI (Morgan Stanley Capital International) MSCI: one of major ESG rating agency, with ESG indexes notably used by Japan’s Government Pension
Investment Fund (GPIF) for its portfolio management
Improved by 2 ranks, Rakuten was rated “A” in 2018, and was selected as constituent of 3 indexes, including
ESG Leaders Indexes
MSCI’s Japan snapshot 2018
“Among the MSCI Japan IMI Top 500 Index, Rakuten was the only
company to improve its rating by 2 compared to last year. The
strengthening of its measures for the protection of personal
information was the main reason. Besides the establishment of
protection policies for each country where business activities are
conducted and the implementation of training courses for all
employees, the introduction of encryption technologies was observed.”
2017 2018
88
This presentation includes forward-looking statements that reflect management’s current assumptions and expectations of future events, and
accordingly, they are inherently susceptible to uncertainties and changes in circumstances and are not guarantees of future performance. Actual
results may 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. Names and logos of companies, products, and services and
such that appear in this material are trademarks or registered marks of their respective companies.