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FY2021 Third Quarter Consolidated Financial Results Video Presentation November 11, 2021 Rakuten Group, Inc.

FY2021 Third Quarter Consolidated Financial Results Video

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Page 1: FY2021 Third Quarter Consolidated Financial Results Video

FY2021 Third QuarterConsolidated Financial ResultsVideo Presentation

November 11, 2021

Rakuten Group, Inc.

Page 2: FY2021 Third Quarter Consolidated Financial Results Video

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CFO Presentation

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Consolidated Revenue Growth: +12.6% YoYIFRS operating income improved by 32.3 billion yen YoY due to gain resulting from the step acquisition of Altiostar.

Improved profitability of other internet services.

Acceleration of Rakuten Ecosystem’s autonomous growth:Preparation underway for Rakuten Bank IPO, incorporation of Rakuten Symphony, and consideration of capital and business alliance.

FY2021 Q3 Financial Highlights

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Revenue increased by double digits YoY due to strong growth in domestic e-commerce businesses such as Rakuten Ichiba and Rakuten Seiyu Netsuper.

Q3/21 Consolidated Results Summary

(JPY bn)

Q3/20 Q3/21 YoY

Revenue 361.4 406.9 +12.6%

Non-GAAP Operating Income -28.7 -57.7 -29.1

Non-GAAP Operating Income

Excluding Mobile, Logistics and Investment Business41.2 48.0 +16.5%

IFRS Operating Income -39.8 -7.5 +32.3

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-28.7

-0.5

33.3

+6.0+5.7

・ Logistics-related investments, costs: +3.7bn

-105.2

3.7

-57.7

-1.1

-61.5

43.8

-0.1

・ Rakuten Rewards (Ebates)

rebranding costs: +0.7bn・Improvement of sports and

overseas businesses

* “Internet Others” segment mainly includes overseas EC businesses and sports related businesses

Q3/21 Non-GAAP Operating Income Breakdown

FinTech

(JPY bn)

Q3/20Operating

Loss

Q3/20Loss fromMinority

Investment

Q3/20Operating

Income(excl. Minority

Investment and Mobile Segment)

Q3/21Operating Income

(excl. Minority Investment and

Mobile Segment)

Internet Others*

(excl. Minority Investment

business)

Domestic EC

Q3/21Profit from

Minority Investment

Q3/21Operating

Loss

Q3/20Loss from

Mobile Segment

Q3/21Loss from

Mobile Segment

Consolidation adjustment

・ Impact of Cashless return subsidies recorded at Rakuten Card in Q3/20 ・Upfront investment

such as system investment and customer acquisition

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Improved Profitability of Other Internet Services

Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21

+JPY 5.7bnYoY

Cost reduction through thorough business management

Other Internet Services Operating Profit(Excludin g gain / loss from Minority Investme nt)

Main improvement factors

Improvement of sports and overseas businesses

Completion of rebranding

Profitability improved due to cost reductions accomplished through business concentration and selections made by our Business Portfolio Committee, and the gradual return to normal business activity. This has led to significant profitability improvements across our other internet services.

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Q3/20 Q3/21 YoY

Non-GAAP Operating Income -28.7 -57.7 -29.1

Amortization of Intangible Assets (PPA) -2.6 -1.3 +1.3

Stock Based Compensation -2.4 -2.3 +0.1

One-off items -6.1 53.8 +60.0

IFRS Operating Income -39.8 -7.5 +32.3

Q3/21 Non-GAAP Operating Income Reconciliation

(JPY bn)

* One-off items include a gain of 59,496 million yen related to the step acquisition of Altiostar Networks, Inc. as a wholly owned subsidiary, and a cost of 5,578 million yen due to an increase in the provision for customer points due to the revision of Rakuten Point's terms and conditions. etc.

Recorded a gain on the step acquisition of Altiostar in one-off items

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Acceleration of the Rakuten Ecosystem’s Autonomous Growth

Rakuten Group, Inc.

Rakuten Mobile, Inc.

Rakuten Card Co.,

Ltd.

Rakuten Payment,

Inc.

Other Domestic and Overseas

Subsidiaries etc,

Rakuten Symphony

(Virtual organization)

Rakuten Communications

Corp. etc.

Rakuten Securities,

Inc.

Rakuten Insurance

Holdings Co., Ltd.

Rakuten Investment

Management, Inc.

Rakuten Edy, Inc.

Rakuten Wallet, Inc.

Rakuten Bank, Ltd.

Internet Service Business

Mobile Business

FinTechBusiness

Payments Business

Milestones to date and current Group structure (as of the end of September 2021)

Aiming to enhance the financial base of the entire Rakuten Group and accelerate the autonomous growth of the Rakuten Ecosystem.

April 2019 Transition to new Group structure

April 2021 Changed company name to Rakuten Group, Inc.

September 2021: Preparations started for Rakuten Bank IPO; decision to incorporate Rakuten Symphony;

consideration of capital and business alliance

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PBR 6.0-10.0xPBR 0.4-2.0xMUFG

SMBC

Mizuho

Seven Bank

Aeon Financial

Service

PagSeguro

TCS Group

KakaoBank

Nubank

etc.

(Brazil) (Korea)

(Brazil)(Russia)

Conventional banks Challenger banks and digital banks

Rakuten Bank Aims to Establish a New Banking Model as an Industry Pioneer

* PBR based on Bloomberg data.* Nubank is based on news information since it is unlisted company

Bank of America

JPMorgan Chase

HSBC

UBS Group

etc.

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Maintaining Credit Ratings by Domestic Rating Agencies

In October 2021, JCR and R&I announced that Rakuten Group’s credit rating would be maintained.

JCR R&I

Long-term A A-Short-term J-1 a-1

Outlook Negative Stable

Release date Oct 4, 2021 Oct 15, 2021

ResultCredit rating

maintainedCredit rating

maintained

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Massive Expansion of the Rakuten Ecosystem

While FinTech continued its strong performance, membership value decreased due to e-commerce-related membership value dropping after surging last year during the pandemic. However, 2 Year CAGR for membership value increased by 16%.

*Mobile business is not included in the above calculation.

UniqueUser

CrossUse

LTVUniqueUsers

-11.3% YoY

Q3/21Membership Value

JPY 7.0tn

Membership Value Target

JPY 10tnx x

x

+16%

2 Year CAGR

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Domestic E-Commerce

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Q3/21 Shopping E-Commerce GMS: +8.7% YoYRakuten Ichiba continued to grow steadily. Growth continues even after factoring in the increased demand arising from stay-at-home trends that began last year.

Ratio of users who made a purchase on Ichiba in Q2/21 and repeated in Q3/21: 75%Increased customer loyalty has led to increased cross-use with other Rakuten services.

By collaborating with Japan Post to run new fulfillment centers and introduce other new initiatives, we aim to deliver greater convenience to our stakeholders and reduce costs by improving operational efficiency.

Domestic E-Commerce Highlights

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Domestic E-Commerce / Shopping E-Commerce GMS*1*2

*1 Domestic e-commerce GMS comprised of Ichiba, Travel GTV on checkout basis, Books, Golf, Fashion, Dream businesses, Beauty, Delivery, Rakuten 24 and other direct daily necessities shops, Auto business, Rakuma, Rebates,

Rakuten Seiyu Netsuper, etc. (*Excludes some tax-exempt businesses, includes consumption tax.)

*2 Shopping e-commerce=Ichiba + 1st Party (Rakuten Fashion, Books, Rakuten 24 and other direct daily necessities shops, Rakuten Seiyu Netsuper) + Open EC (Rebates, Rakuten Pay online payments) + Rakuma.

Q3/21 Domestic E-Commerce GMS

+7.6%

YoY

8.7%+YoY

Q3/21 Shopping E-Commerce GMS

JPY1.2tn

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*Domestic e-commerce = Ichiba, Travel, Books, Golf, Rakuten Fashion, Dream businesses, Beauty, Rakuten 24 (daily necessities), Logistics, Auto business, Rakuma, Rebates, etc.

Domestic E-Commerce Results*

Revenue grew +13.3% YoY, even after last year’s increased demand for e-commerce and the boost provided by the Go To Travel Campaign. Operating Income grew +39.0% YoY due to growth of existing businesses and the succession of the Logistics business to JP Rakuten Logistics.

(JPY mm)

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+3.0

15.421.4

-0.6

17.8

+3.6

July 2021Succession of Rakuten-operated logistics business to JP RakutenLogistics.

・Continuous expansion of Ichiba.

・Travel improved QoQ. YoY

slowdown due to Go To Travel Campaign in 2020.

Domestic E-Commerce Operating Income Breakdown

(JPY bn)

Growth of marketplace businesses・Rakuten Ichiba・Rakuten Travel・Rakuten GORA, etc.

Investment phase businesses・Rakuten 24 (daily necessities)・Rakuma・Rakuten Books・Rakuten Fashion・Rakuten BIC・Rakuten Seiyu Netsuper, etc.

Logistics-related investments and costs, etc.

Q3/20 Domestic E-Commerce

Operating Income

Q3/21 Domestic E-Commerce

Operating Income

Q3/21 Domestic E-Commerce

Operating Income(Excl. logistics-related investments/costs)

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E-Commerce Penetration Rate in Japan is Increasing Year After Year

*Based on METI’s FY2020 Industry and Economy Research Project (Market Research on E-Commerce) Report.

In 2020, E-commerce penetration growth exceeded the annual average.Continued growth is expected going forward

・・・

■E-commerce penetration rate

for BtoC product sales

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Rakuten E-Commerce Services GMS Growth Exceeds Industry Standards

20/1

0

21/8 20/1

0

21/8 20/1

0

21/8

vs. Jan 2020 change rate vs. Jan 2020 change rate vs. Jan 2020 change rate

vs.

Retail industry sales

vs.

Supermarket sales

vs.

Travel agency industry GTV

*METI, Commercial Sales Value by Type of Business and Value from Same Month/Period of the Previous Year.

*Japan Tourism Agency, Flash Report on Major Travel Agency Transaction Amounts.

*National Supermarket Association of Japan, Supermarket Sales Statistics Survey.

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Ratio of users who made a purchase on Ichiba in Q2/21 and repeated in Q3/21

Approx.75%

New and returning customers who used Ichiba in 2020 are here to stay.

Purchase frequency per user continues to increase along with the increased number of users making purchases.

Rakuten Ichiba Maintains High User Loyalty

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+30.2%YoY

(Rakuten Ichiba)

Q3/21 Rakuten Ichiba × Rakuten Fashion Users

YoY Cross-Use GrowthQ3/21 Rakuten Ichiba × Rakuten Seiyu Netsuper Users

YoY Cross-Use Growth

+37.1%YoY

Rakuten Ichiba + Other E-Commerce Services Cross-Use Expansion

(Rakuten Ichiba)

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Users Merchants

■Creation of seamless delivery network usingexisting centers

■Creation of shared logistics centers

■Creation of new digital transformationplatform for logistics

■User UX improvements

Combining orders in one delivery

Meeting diverse pick-up needs

■Shorten delivery lead time

Began offering same-day deliveryExpanded area for next-day delivery

■Improving logistics

efficiency in terms of costs and operations

■Merchant revenue growth

via increased logistics efficiency

Improving Satisfaction for All Stakeholders

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2222

Tested drone deliveries in mountain region of Hakuba Village, Nagano Prefecture

Opened Rakuten Fulfillment Center Chuorinkan

・Place: Yamato, Kanagawa・Total area: approx. 95,000 square meters・Leased area: approx. 42,000 square meters

・Nagareyama (RFC)・Narashino (RFC)・Sagamihara (Rakuten Direct)・IchikawaⅡ (Rakuten books)・Ichikawa Ⅳ (Rakuten Fashion)・Tama (by 2023)

RFC Chuorinkan

・Hirakata (RFC)・Kawanishi (Rakuten Direct)・Fukuoka (by 2023)・Yao (by 2023)

Japan’s first round-trip drone delivery involving supply drops conducted beyond visual line of sight and without observers.

regional revitalization

Contribute to reduced CO2 emissions and regional revitalization.

Preparations are underway in Tama, Yao and Fukuoka.

JP Rakuten Logistics: Initiatives for Logistics Expansion and Greater Convenience

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Society Customers Partners

Provided Rakuten-led workplace vaccinations to hotel staff.

Shared expertise and supported regional large-scale vaccination

operations.

Vaccination Project Financial support for hotelsClearly displayed

COVID-19 countermeasures

Rakuten Travel COVID-19 Initiatives

Provided faster payment cycle.Provided safe and secure travel.

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FinTech

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Customer base expansion:A strong FinTech ecosystem anchored by Rakuten Card

Customer wallet share expansion strategy: Half a million second Rakuten Cards issued by September 30

Rakuten Card’s mid-term goal: Contribute to the growth of FinTech companies and the Rakuten Group as a whole by establishing and aiming for the “Triple 3”

FinTech Highlights

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Revenue increased by steadily expanding the customer base and “main service” usage rate of all FinTech services.In addition to the impact of government subsidies for the promotion of cashless payments in Q3 2020, Rakuten Card's profits declined as a result of upfront investments such as system investment and new Rakuten Card user acquisition for the post-pandemic market . At the same time, Rakuten Card’s presence in the industry is steadily increasing.

*Insurance includes Life Insurance, General Insurance, Pet Insurance and Insurance Agency. Detailed data is shown in the Appendix.*Bank: Joint venture in Taiwan (RAKUTEN INTERNATIONAL COMMERCIAL BANK CO., LTD.) became a consolidated subsidiary in Q2/20, which is not included in the figures above.

FinTech Results Summary

Revenue YoY Operating Income YoY

Card 68.5 +5.4% 9.8 -15.0%

Bank 25.5 +7.5% 7.3 +8.8%

Securities 22.0 +17.1% 4.0 -10.7%

Insurance 23.8 -11.2% 1.9 +2.1%

Payment 9.6 +16.4% -0.9 +0.8

Others 1.5 +1.3% -0.8 -0.4

FinTech Total 150.9 +4.8% 21.2 -5.1%

• Impact of government subsidies for the promotion of cashless payments in Q3 2020:Approx. JPY 1.1bn

• Increase in depreciation costs due to system renewal: Approx. JPY 0.5bn

• Marketing investment for customer acquisition, etc.

(JPY bn)

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FinTech Customer Base Expansion

*Includes the issuance of a second Rakuten card per cardholder, which began full-scale in June 2021.

Sep/21 Rakuten Cards Issued* Sep/21 Rakuten Bank Accounts Sep/21 Rakuten Securities Accounts

23.90mm

YoY+15.2%

11.38mm

YoY+20.4%

6.67mm

YoY+41.1%

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21.4%

Rakuten Card: Shopping GTV +23.3% YoY, Market Share Expanded to 21.4%

Jan/16 Jan/17 Jan/18 Jan/19 Aug/21Jan/20

+23.3%YoY

9.9%

Share doubled in 5 years

Q3/21 Card Shopping Transaction Value *1 Shopping GTV market share in Japan *2

*1 Calculated on a managerial accounting basis, using different definitions from data in the Appendix. Detailed credit card data is shown in the Appendix.*2 Ministry of Economy, Trade and Industry, Specified Service Industry Statistics Survey, Credit Card Industry.

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Usage of Rakuten Bank accounts as customer’s "main account" has made great progress, with sustained high growth for payroll accounts and an increasing number of transactions.

Rakuten Bank: Significant Progress in Becoming More Customers’ Main Account

Sep/21 Payroll account numbers Q3/21 Number of transactions

YoY YoY

+15.5%+59.0%

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Rakuten Securities’ customer base expansion is the best in the industry. The number of investment trust accounts is 1.88 million, of which 77% are paid for using Rakuten Card. The total of monthly saving amountincreased 162.5% YoY to 70.1 billion yen per month.

Rakuten Securities: Expansion of Asset Building Services

Rakuten Cardpayment ratio

Number of accumulation-type investment trust accounts Accumulation-type investment trusts: Amount purchased

Sep/20 Dec/20 Mar/21 Jun/21 Sep/21Sep/20 Dec/20 Mar/21 Jun/21 Sep/21

1.88mmJPY 70.1bn

+162.5%Yo Y

+122.5%Yo Y

77%

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Life Insurance began offering dementia insurance in August, which has sold well. General insurance sales are being driven by online sales of both auto insurance and fire insurance.

Insurance Business: New Contract Acquisition Increasing Despite Pandemic

Jan/21 – Sep/21 Life insurance New Sales (ANP) Jan/21 – Sep/21 General insurance New Sales (ANP)

*Personal products only.

YoYYoY

Life Insurance General Insurance

*Excludes mortgage loan group credit life insurance.

+28.4%+21.6%

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In August 2021, we released new features for the Rakuten Pay app with expanded functionality for users. This succeeded in introducing customers to other Rakuten Group services.

Rakuten Payment: Cross-Use Contribution to Rakuten Group Through Rakuten Pay App

+171%

*1 Comparison between July 27-31, 2021 and August 27-31, 2021.*2 Comparison between July 27-August 1, 2021 and August 27-September 1, 2021

+166%

+64%

Rakuten PashaNumber of new registrants*1

*Features originally implemented in August 2021. Continuing to expand content.

Rakuten CheckApp downloads*1

Coupon siteNumber of visitors*2

Cross-use contributions

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New initiatives launched in October 2021. The number of Rakuten Pay merchants is increasing rapidly.

Rakuten Payment: New Initiatives to Increase Merchant Numbers

Number of Rakuten Pay applications *

Approx.10x

*Comparison of the number of applications for small and medium-sized merchants in 2020 and the forecast for 2021.

• Support for small and medium-sized merchants• Rakuten Pay QR payments effectively free of

charge (from October 2021)• Card reader gift campaign also underway

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The loyalty of Rakuten Card members continues to grow, and the per capita usage amount has increased.

Rakuten Card: Results of Issuing Second Card to Current Cardholders

*Comparison of April 2021 and August 2021 for members who applied for a second card in June 2021.

0.5mm

Number of second Rakuten Cards issued at the end of Sep/21 Comparison of amount spent per customer*

Exceeded

Before(1 card)

After(2 cards)

Unit price+16%I can earn more Rakuten points

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Maintain a high growth rate and aim to hit the “Triple 3” targets.

Rakuten Card: Mid-Term Goal

Cards issued

Shopping GTV

GTV share

30million

30trillion JPY

24 million

11.6 trillion JPY

21.4% 30%

(October 2021)

(FY2020)

(August 2021)

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With an annual transaction volume of 30 trillion yen, Rakuten Card commands a strong presence on a global scale.

Rakuten Card: Post-Triple 3 Outlook

JPMorgan

Chase

Citi Bank of

America

Rakuten Card Wells Fargo Barclays HSBC Rakuten Card Hyundai Card, Credit Saison,

89.7

61.1

42.1

15.5 14.4 13.09.6 7.9 5.1

30.0

After achieving Triple 3

Credit card transaction volume of major companies (FY2019)

*Calculated by Rakuten Card using various available statistical figures.

(JPY trillion)

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Growth of Rakuten Card contributes to the growth of our FinTech companies and the RakutenGroup as a whole.

Rakuten Card: Why We Are Targeting the “Triple 3”

Number of Rakuten Bank accounts linked to Rakuten Cards for withdrawal*

Number of accumulation-type investment trust accounts and amount purchased

Rakuten Card Share of Rakuten IchibaGMS

2.9x

*Number of average monthly accounts set up in the three-month period prior to SPU benefits compared to the number of average monthly accounts set up in the year following SPU benefits.

Sep/17 Sep/18 Sep/19 Sep/20 Sep/21

設定金額 設定口座数

Oct/18: Started accumulation-type

investment trust paid by Rakuten Card

要更新

63%

69%

Jan/20 Sep/21

Number of account

Amount purchased

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Expanding the customer base and profit base of Rakuten’s FinTech ecosystem using Rakuten Card as a point of entry.

Overall FinTech Strategy

Money Bridge

Rakuten Card

charge

Direct payments

from Rakuten Bank

SPU + 1x with Rakuten Card payment for insurance

premiums on certain products

Accumulation-type investment trust paid with a Rakuten Card

SPU + 1x with Rakuten Card

direct debittransactions

Expansion of

Ecosystem27.2%クロス

6mmaccounts

Number of cards issued

24mm*

11mmaccounts

Rakuten Bank

charge(Bank)

(Securities)

(Life Insurance)

(GeneralInsurance)

*Includes the issuance of a second Rakuten card per cardholder, which began full-scale in June 2021.

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Mobile

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Switching to Rakuten network started in 39 prefectures:Reducing reliance on partner’s roaming network

Steady expansion of customer base

Starting phase 2 with Rakuten Symphony

Mobile Highlights

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Number of On-air Base Stations Increasing Steadily

30,055

4,738

17,564

Number of 4G base stations on-air

+10,000 base stations ready to go on-air subject to imminent delivery of

semiconductor components

Page 42: FY2021 Third Quarter Consolidated Financial Results Video

94.3% → 96%in sight subject to

semiconductor supply

* Area map as of end of September 2021 (Population coverage: 93.3%)

* Night-time population coverage ratio

* The area map may not match the actual population coverage depending on the timing of aggregation and others

Google Data SIO, NOAA, U.S. Navy, NGA, GEBCO Londsat / Copernicus Data LDEO-Columbia, NSF, NOAA, SK telecom

(as of October 14 2021)

4G Population Coverage

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Reducing Reliance on Partner Network Roaming

Date:From October 1, 2021

Areas:Locations within 39 prefectures

* Iwate, Yamagata, Yamanashi, Wakayama, Shimane, Kochi, Nagasaki, Kagoshima prefectures excluded

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1GB or less

1-3GB

3-20GB

More than 20GB

980 yen/month

2,980 yen/month

0 yen/month

(2,178 yen inc. tax)

(1,078 yen inc. tax)

(3,278 yen inc. tax)

2,980No matter howmuch you use

Unlimitedyenper month

*1 For first line only. Product purchases, option fees, calls, etc. will be charged separately. For the customer’s second line and onwards, data usage of between 0GB and 3GB will be charged at 980 yen per month (1,078 yen inc. tax). *2 Unlimited high-speed data when connected to Rakuten base stations. To provide a fair service, restrictions on transmission speed may be implemented. Unlimited data at max 1Mbps after using the allocated 5GB for domestic roaming partner area and at max 128kbps after using the allocated 2GB for international roaming partner area. *3 At max 1Mbps, streaming video or downloading apps may take longer than usual. Transmission speed is best effort (the maximum speed of the standard). Actual transmission speeds may vary depending on the network environment.

*1

*2

Unlimited data In the Rakuten network areaUnlimited data at max 1Mbps in the domestic roaming partner area*3

1,980 yen/month

(3,278 yen inc. tax)

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2.18 2.02 1.831.48

1.14 0.99

0.65 1.12 1.622.85 3.66 4.112.83

3.143.45

4.33

4.805.10

Apr/20 May/20 Jun/20 Jul/20 Aug/20 Sep/20 Oct/20 Nov/20 Dec/20 Jan/21 Feb/21 Mar/21 Apr/21 May/21 Jun/21 Jul/21 Aug/21 Sep/21

MVNO MNO

Steady Expansion of Customer Base

(million subscribers)

Number of MNO and MVNO subscribers

Last-minute demand before conclusion of the one-year free campaign

* Number of subscribers in Sep/21 are preliminary figures.* Number of MNO subscribers in Mar/21 has been revised from preliminary figure to confirmed figure.

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33,543 38,151 38,934

43,969 45,369 44,179

55,805 51,462 54,941

(16,944)

(31,524) (35,407)

(53,825)(61,451)

(76,576)

(97,597) (99,686)(105,237)

Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21

Revenue +21.1% YoY

Operating Loss -43.8bn YoY

• QoQ MNO revenue increase was greater than MVNO revenue decrease as users migrated to Rakuten UN-LIMIT VI with three months free campaign.

• Network related cost increased due to progress of network construction plan. • Switching from roaming service to Rakuten’s network should reduce roaming cost from Q2/22.

* Mobile segment includes Rakuten Communications, MNO business, MVNE & O businesses, Energy businesses, and contents businesses.* Rakuten Kobo, Rakuten Viki, Rakuten Viber, and others moved from mobile segment to internet service segment from Q2/21.

Mobile Segment* Results

(JPY mm)

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Rakuten Symphony

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Rakuten Mobile named a 5G Global LeaderOpensignal “5G Global Mobile Network Experience Awards 2021”

*1 Opensignal Awards – 5G Global Mobile Network Experience Awards, 2021, based on independent analysis of mobile measurements recorded during January 1 – June 29, 2021 © 2021 Opensignal Limited.

Page 49: FY2021 Third Quarter Consolidated Financial Results Video

VisionConnect everything to fulfill its

potential for a sustainable future

PurposeEmpower industries, societies and

individuals to transform themselves through cloud, edge and automation

technologies

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Differentiating with Trusted Transparency: For both technology and business models

Transparency for Solution TCO & SLAs

ComponentTransparency

(Pricing)

Product Choice(KPIs)

Solution Flexibility(TCO & SLAs)

Component Product Solution Integration Service

Transparency for Component Prices

Transparency for Product KPIs

Page 51: FY2021 Third Quarter Consolidated Financial Results Video

Zero touch deployment

Radio Accessas-a-service

Edge-native open technology

architecture

HW-free upgrade path

Energy-efficient sustainable design

Meet SymwareA revolutionary generation-free solution

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Symphony AppStoreRedefining telco productivity and efficiency

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Removing Product Integration Complexities

RAN Core TransportCloud &

InfrastructureDX

API Gateway (TMF compliant)

Data Platform

Data Bus

CMaaSConfig Management

OBFObservability Framework

FacilityManagement

Inventory

IPAM

Network Planning

Business Intelligence

IT service Management

Security

ConfigurationManager

Performance Monitor

FaultMonitor

Automation Studio

KnowledgeManagement

Page 54: FY2021 Third Quarter Consolidated Financial Results Video

54

Leading Telco Transformation

OpenRAN Greenfield Innovators

Early Brownfield Adopters

Majority Operators

2019 2021 2023 2025

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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.