Message to Shareholders and Investors

Corporate Mission

Empowering individuals and society through innovation and entrepreneurship

Message from CEO

Dear Shareholders,

On behalf of Rakuten Group, I would like to thank all of our shareholders for your continued support.

In 2024, there were significant milestones achieved by Rakuten Group. Rakuten Mobile achieved monthly profitability on an EBITDA^*1 basis. Rakuten Mobile is a business that has grown with the trust and support of our shareholders. Following capital expenditures focused on the installation of cell phone base stations from 2019, full-scale services were launched in April 2020. Since then, Rakuten Mobile has been pursuing services that are valuable to users, such as the launch of Rakuten SAIKYO Plan offering unlimited high-speed data nationwide, including 5G, as well as the launch of an enterprise business and a commercial service with the 700 MHz “Platinum Band” spectrum, along with the continued rollout of base stations to improve network quality. As a result, the total number of subscribers^*2 of Rakuten Mobile increased by 1.77 million during the current fiscal year, reaching approximately 8.3 million by the end of the year. In December 2024, EBITDA turned positive on a monthly basis, achieving the initial target for the period.

The growth of Rakuten Mobile is having a significant ripple effect on the entire Rakuten Group. It was found that the gross merchandise sales (transaction value) of Rakuten Mobile subscribers was approximately 1.5 times higher than that of non-subscribers on Rakuten Ichiba, approximately 1.1 times higher on Rakuten Travel, and approximately 1.3 times higher on Rakuten Card. Benefiting from effects of Rakuten Ecosystem, annual gross merchandise sales of Domestic E-Commerce businesses trended solidly at around 6 trillion yen, and the annual card shopping transaction value surpassed 24 trillion yen. The number of Rakuten Securities accounts reached 11.93 million, an increase of 1.73 million compared to the end of the previous fiscal year, due to the positive impact of the new NISA (Nippon Individual Savings Account) program, and Rakuten Bank’s non-consolidated balance of deposits also surpassed 12 trillion yen. Another major milestone was the second consecutive J1 League championship and Emperor’s Cup JFA Japan Football Championship by Vissel Kobe, in its 30th year since establishment.

As a result of these efforts, the Rakuten Group recorded consolidated annual revenue of 2.3 trillion yen for the current fiscal year, up 10.0% year-on-year. The promotion of efforts to improve marketing and operational efficiency through the use of AI, etc., also resulted in significant cost reductions, and consolidated Non-GAAP operating income and IFRS operating income were in the black for the full year. In 2025, we will aim for further growth in each business, and by making more extensive use of data and AI, we will contribute not only to improving operational efficiency, but also to enhancing customer experience and supporting activities of partner companies.

With respect to dividends, we have decided not to pay dividends for the fiscal year ended December 31, 2024, in the belief that controlling the outflow of funds and prioritizing the enhancement of internal reserves for investment for medium-to long-term growth and the stabilization of our financial base will lead to an enhancement of shareholder value. We will strive to resume dividend payments in a timely and appropriate manner as we work to generate stable profits and reduce interest-bearing debt.

Thank you for your continued understanding and support.