To Shareholders & Investors

Aiming to be a Corporate Group that
Empowers People and Society

Rakuten was founded in 1997 and in 2016 it entered the 20th year since establishment.
Rakuten Ichiba, which opened with the establishment of the Company, is Japan's largest Internet shopping mall, made up of shops from various regions that form a virtual shopping mall on the Internet. Guided by the concept "Shopping is Entertainment," Rakuten Ichiba offers a shopping venue that emphasizes both scale and quality.

Rakuten has built the Rakuten Eco-System, which provides Rakuten members with a range of services through a single ID, from Rakuten Ichiba, to Rakuten Travel and other Internet services, and financial (FinTech) services including Rakuten Card, Rakuten Bank, and Rakuten Securities.Furthermore, we are constantly striving to offer innovative Internet services through additions to the Group such as Rakuten Kobo in the digital contents field, the free calling and messaging app Viber, and the cash-back website Ebates.

As a result of these efforts, the number of users, which is the base of the Rakuten Eco- System, has grown dramatically to 900 million worldwide. Moreover, by taking advantage of various synergies that go beyond national borders or business categories, we have increased Rakuten's global gross merchandise sales (transaction value) to over ¥9 trillion. In 2015, with the aim of expanding the business and creating a stable foundation for further growth, we worked to strengthen our financial base by carrying out the public offering after approximately nine years since our last public offering. In addition, we relocated our head office to Futako- Tamagawa in Setagaya-ku, Tokyo. This move was made in anticipation of an increase in employees accompanying future business expansion, as well as to further streamline operations by bringing together Group companies. The new head office, Rakuten Crimson House, abounds with details reflecting the care for the working environment that has been an important element at Rakuten since our founding. With a complete line of facilities including a cafeteria that offers breakfast, lunch, and dinner each day at no charge, a daycare for children that features diversity-oriented education, and a video conference system that lets employees around the world talk to each other as if they were side by side, Rakuten Crimson House embodies a cutting-edge work environment.

Under our medium- to long-term Vision 2020, we are aiming for further profit growth with Non-GAAP operating income of ¥300 billion in 2020 set as the target for the Rakuten Group. With regard to domestic e-commerce gross merchandise sales, we are targeting an increase from the current ¥2.7 trillion to ¥5.2 trillion. For Rakuten Card, our goal is to increase the number of members from the current 12 million to 20 million, and to have the top transaction value in the industry within a few years. In 2016, we will work to expand gross merchandise sales and revenue by providing users and business partner companies with services of higher quality than ever before. I believe that these efforts will lead to sustainable profit growth for the Rakuten Group and will help us maximize Rakuten's corporate value and shareholder value.

As a corporate group that empowers people and society, we will challenge ourselves with an enterprising spirit as we work to improve corporate and shareholder value by achieving sustainable growth. We ask for the ongoing understanding and support of our shareholders in those endeavors.

March 2016

Chairman and CEO
Tokyo, Japan

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