Fiscal Year 2011 Full Year and
Fourth Quarter Financial Results
February 13, 2012
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. Names of companies, products, and services and such that appear in this material are trademarks or
registered marks of their respective companies.
[Note] Annual growth of Rakuten Ichiba & Rakuten Books GMS in the footnote on page 4 was corrected from 14.9% to 17.1% on February 15, 2012
Revenue of “Others and Former Rakuten KC Co., Ltd.” in FY2011/Q4 on page 44 was corrected from 2.6 billion yen to 1.0 billion yen on April 27, 2012
Contents
1
FY2011 Full Year Results
2
Mid-to-Long Term Strategy
3
FY2011 Fourth Quarter Results
4
Internet Services
5
Internet Finance
6
Others
Appendix
1
1
FY2011 Full Year Results
2
Highlights of FY2011 Financial Results
Highest levels of
Sales, Operating Profit,
and Ordinary Profit
in Rakuten’s history
3
Looking Back on 2011
„ Ichiba surpassed JPY 1 trillion GMS and still
growing faster than expanding Japanese
E-Commerce market*1
„ Strengthened international marketplace
businesses
„ Executed restructuring of finance businesses,
and entered into high growth stage
„ Cost control effective and ongoing
„ Expanded global technology sites
*1：Japanese Internet & mobile commerce market growth in 2011 +11.4% YoY (Fuji Keizai),
Growth of Rakuten Ichiba & Rakuten Books GMS in 2011 +17.1% YoY
4
Rakuten Group Consolidated Sales
„ Sales: +9.8% (accounting), Sales excluding KC Card*1: +15.0% YoY
Sales
(JPYbn)
379.9
400
346.1
298.2
300
249.8
*
5.0%
1
+
s
Sale
213.9
200
100
0
FY2007
FY2008
FY2009
FY2010
FY2011
*1: Pro forma figures excluding sales of “KC Card” business sold on Aug. 1, 2011; FY2010 JPY25,282mm, FY2011 JPY10,818mm
5
Rakuten Group Consolidated Operating Profit
„ OP achieved record high for 4 consecutive years: JPY 71.3 bn, +11.9% YoY
„ Adjusted OP*2: JPY 75.6 bn, +18.6% YoY
Operating Profit
(JPYbn)
75.6
80
*2
63.7
56.6
60
*2
OP
47.1
+
%
18.6
40
24.6
*1
20
0
FY2007
FY2008
FY2009
FY2010
FY2011
*1: Fiscal 2007 operating profit excludes a one-time expense of JPY 24.5bn due to change of estimation method of additional provisions for
allowances relating to interest repayment claims at Rakuten KC Co., Ltd.
*2: Fiscal 2011 operating profit excludes JPY 4.2bn of additional provisions for allowances relating to interest repayment claims at Rakuten KC Co.,
Ltd. before reorganization of credit card business
6
Rakuten Group Consolidated EBITDA
„ EBITDA achieved record high for 4 consecutive years :JPY 96.6 bn, + 10.2% YoY
„ Adjusted EBITDA*2: JPY 100.9bn, +15.0% YoY
EBITDA
(JPYbn)
100.9
100
87.7
78.4
80
60
*2
*2
DA
EBIT
66.7
0%
+15.
*1
44.1
40
20
0
FY2007
FY2008
FY2009
FY2010
FY2011
*1: Fiscal 2007 EBITDA excludes a one-time expense of JPY 24.5bn due to change of estimation method of additional provisions for allowances
relating to interest repayment claims at Rakuten KC Co., Ltd.
*2: Fiscal 2011 EBITDA excludes JPY 4.2bn of additional provisions for allowances relating to interest repayment claims at Rakuten KC Co., Ltd.
before reorganization of credit card business
7
FY2011 Sales and Operating Profits
by Business Category
(JPY bn)
Sales
*2
Internet
Services
Internet
Finance
Net
+23.5%
+19.8%
excl.
*3
KC Card
130.3
+16.4%
17.5
Accounting
141.1
+2.9%
13.3
34.1
-6.3%
1.1
-24.0
-
EBITDA*1
YoY
65.7
228.5
Adjustments
OP
Margin
32.3%
Gross
(Accounting)
Others
Consolidated
203.9
Operating
Profit
YoY
+13.2%
73.8
+10.9%
21.2
15.1%
+7.2%
3.3% +489.6%
3.2
9.5%
+61.6%
9.4%
-
75.6
Accounting
379.9
+9.8%
71.3
32.3%
25.5
-
+15.0%
+12.8%
+46.4%
-
-8.9
369.0
YoY
36.2%
28.8%
excl.
*3
KC Card
EBITDA
Margin
18.8%
-
-1.7
-
+18.6%
100.9
-
+11.9%
96.6
-
25.4%
+28.7%
+15.0%
+10.2%
*1: EBITDA = Ordinary Profit + Interest expense + Depreciation + Amortization of goodwill - Effect of securitizing loan receivables
*2: Calculated based on Gross Profit for Package Media (inventory-type business in Japan).
*3: (Pro forma) Sales excludes sales of “KC Card” business sold on Aug. 1, 2011; FY2010 JPY25,282mm, FY2011 JPY10,818mm. Profits exclude
JPY 4,264 mm of additional provisions for allowances relating to interest repayment claims before reorganization of credit card business
8
Domestic Gross Transaction Value
(Including Credit Cards and E-Money)
(JPY bn)
3,500
3,294
3,000
2,693
2,500
1,859
2,000
1,473
1,500
1,000
1,154
355
Edy and
*2
Credit Card
+29.5% YoY
420
Travel*3
+14.9% YoY
366
482
*1
305
260
220
500
579
1,642
1,268
657
Domestic Gross
Transaction
Value
+22.3% YoY
730
896
1,059
1,232
Domestic*4
E-Commerce
+16.4% YoY
0
FY2007
FY2008
FY2009
FY2010
FY2011
*1: Edy Transaction Value = Amount settleｄ by E-Money “Edy” (including mobile and cards) (Q1/10-)
*2: Credit Card Shopping Transaction Value = Shopping Transaction Value of credit cards (including Rakuten group service use)
*3: Travel (before cancellations, excluding tax) = Domestic/international accommodation bookings, International air tickets, Domestic/international dynamic
packages, Domestic bus services, Rental car services
*4: Domestic E-Commerce = Mall (Fixed-price, Group purchase), Mobile, Business, Golf, Books, Auction (Flea market), download, tickets, Internet
Supermarket, Check Out, Off-track betting, toto, Showtime, Media Rental
9
FY2011 Overseas E-Commerce GMS Jumped
„ In 2011, we completed entries into countries with high internet penetration
Up to Dec 2010
New entries from Jan 2011
¾ Taiwan Rakuten Ichiba
(Date of consolidation)
¾ Tarad.com: Thailand
¾ Belanja: Indonesia
(Q2)
¾ Buy.com: US
¾ Rakuten Brazil
(Q3)
¾ Priceminister: France
¾ Rakuten Deutschland (Q4)
¾ Lekutian: China
¾ Play.com: UK
Total Overseas GMS
(JPY bn)
100
80
(Q4)
87.1
62.5
60
*
40
%
9.4
3
+
20
Y
Yo
(*FX-adjusted)
0
FY2010
FY2011
10
Dividend per Share (Adjusted for Stock Splits)
„ Steady trend of increasing dividends
(JPY)
250
250
200
200
150
100
100
100
100
50
50
25
50
25
0
FY2003
FY2004 FY2005
FY2006 FY2007 FY2008
FY2009 FY2010
FY2011
11
2
Mid-to-Long Term Strategy
12
Mid-to-Long Term Focus
„ Strengthen dominance and scale
in Japan
„ Create Single Global Platform
„ 2012 = Opening Year of our True
Globalization
13
New Rakuten Logo and Branding (1)
14
New Rakuten Logo and Branding (2)
„ More powerful logo for transition of Rakuten to global brand status
„ New English logo gives strong impression like Japanese logo
=
15
New Rakuten Logo and Branding (3)
„ Smooth transition from co-branding to Rakuten brand
¾ Germany: brand transition
16
Advancing to the Next Stage
True Globalization
with eBooks
17
Recent Press Reports on Rakuten
(UK, Germany)
Handelsblatt (Jan 23):
The Guardian (Feb 5):
InternetWorld (Jan 31):
Japanese Internet Giant
Rakuten to Challenge Amazon
Why Rakuten’s Kobo is Amazon’s Only
Global Competition
Rakuten Chief: “In 5 Years We
Will Be No. 1 (in Germany)”
18
Recent Press Reports on Rakuten (Brazil)
Valor Economico (Feb.5):
Rakuten Focuses on Brazil in
Globalization Effort
19
Kobo – World Class eReader Company
„ Now 7m readers on Kobo devices and apps
„ Over 1m readers added in month of Dec 2011
„ Global Business Expansion
¾ Strong launches in UK and France with no. 1 Booksellers
¾ New Kobo Touch with Offers, expanding distribution in US
¾ New Kobo Vox in UK, Australia and New Zealand
*1: Kobo Inc. will be consolidated from Q1/2012
20
Rakuten + Kobo Integrated Model
Exploring the Future with eBooks
„ Provide new value to users
„ Win-Win for Publishers, Retailers, OEMs
„ Fast Time to Market with Capital Efficiency
21
Kobo Japan Launch
„ Preparing for launch in Japan
„ Rakuten + Kobo to invigorate eBook market in Japan
„ Win-Win model to be same in Japan
„ Local content + Kobo international offering
„ Competitive eReaders at affordable prices
22
Kobo Highly Rated Globally
Kobo Touch selected by WIRED as Best eReader
23
3
FY2011 Fourth Quarter Results
24
Summary of Q4/11 Consolidated Results
(JPY bn)
Q4/10
Q4/11
(Oct-Dec)
(Oct-Dec)
Margin
YoY
Sales
93.5
109.4
100.0%
+16.9%
Operating Profit
19.5
23.1
21.2%
+18.5%
Ordinary Profit
19.1
22.0
20.1%
+14.9%
26.0
29.7
27.1%
+13.8%
*
EBITDA
*EBITDA = Ordinary Profit + Interest expense + Depreciation + Amortization of goodwill - Effect of securitizing loan receivables
25
Summary of Q4/11 Consolidated Results
(by Business Category)
(JPY bn)
Sales
*2
Internet
Services
Net
Adjustments
Consolidated
+41.4%
OP
Margin
30.7%
+33.8%
34.1
-3.0%
5.2
7.5
-1.1%
-0.2
-
-2.6
-
109.4
-
+16.9%
23.1
21.2%
YoY
23.1
27.8%
15.3%
EBITDA
Margin
34.2%
+11.3%
74.7
-7.0
EBITDA*1
YoY
20.8
Gross
(Accounting)
Internet Finance*3
Others
67.8
Operating
Profit
YoY
+10.9%
31.0%
7.2
21.1%
-
0.2
3.7%
-
-0.9
+37.0%
+18.5%
29.7
-
27.1%
*1: EBITDA = Ordinary Profit + Interest expense + Depreciation + Amortization of goodwill - Effect of securitizing loan receivables
*2: Calculated based on Gross Profit for Package Media (inventory-type business in Japan).
*3: Adjusted Internet Finance sales growth was +15.1% YoY, excluding JPY 5.52bn sales of the sold KC Card business,
+27.1%
-
-
+13.8%
26
Quarterly Domestic Gross Transaction Value
(Including Credit Cards and E-Money)
(JPY bn)
1,000
917.3
772.1
800
649.8
682.8
805.8
727.4
588.3
600
397.6
370.5
302.4
844.2
457.8
Edy*1 and
*2
Credit Card
+23.6% YoY
103.0
Travel
+13.9% YoY
423.6
362.7
328.1
266.9
*3
400
90.4
81.8
Domestic Gross
Transaction
Value
+18.8% YoY
90.8
104.0
120.4
93.1
103.0
200
239.6
256.5
251.7
10/1Q
10/2Q
10/3Q
311.0
271.4
304.1
300.1
11/1Q
11/2Q
11/3Q
356.4
Domestic*4
E-Commerce
+14.6% YoY
0
10/4Q
11/4Q
*1: Edy Transaction Value = Amount settleｄ by E-Money “Edy” (including mobile and cards) (Q1/10-)
*2: Credit Card Shopping Transaction Value = Shopping Transaction Value of credit cards (including Rakuten group service use)
*3: Travel (before cancellations, excluding tax) = Domestic/international accommodation bookings, International air tickets, Domestic/international dynamic
packages, Domestic bus services, Rental car services
*4: Domestic E-Commerce = Mall (Fixed-price, Group purchase), Mobile, Business, Golf, Books, Auction (Flea market), download, tickets, Internet
Supermarket, Check Out, Off-track betting, toto, Showtime, Media rental
27
4
Internet Service
28
Internet Services Quarterly Results
(JPY mm)
Sales
Operating Profit
74,746
80,000
60,000
55,867
44,058
48,616
54,386
48,435
Sales
+33.8%
YoY
50,999
42,306
40,000
20,813
18,693
20,000
12,485
12,973
13,975
12,654
15,888
16,426
OP
+11.3%
YoY
0
Q1/10
Q2/10
Q3/10
Q4/10
Q1/11
Q2/11
Q3/11
Q4/11
29
Internet Services Breakdown
„ Sales of “others” surged mainly due to consolidation of Play.com since Q4/11
Sales
Operating Profit
(JPY bn)
(JPY bn)
74.7
70
60
55.8
48.4 50.9
50
40
30
25.0
20.8
21.0
54.3
39.5
5.9
5.4
5.4
Others
+58.1%
YoY
21.9
6.7
7.8
Travel
+14.1%
YoY
20
10
20.8
22
20
18.6
18
2.2
16
2.5
1.1
15.8
14
12.6
12
2.0
2.0
16.4
2.9
3.7
Others
-50.7%
YoY
Travel
+14.0%
YoY
10
16.8
8
6
13.9
13.9
13.4
11.1
Ichiba
+20.8%
YoY
4
24.9
22.2
24.4
24.5
28.4
0
Ichiba
+14.2%
YoY
2
0
-2
Q4/10 Q1/11 Q2/11 Q3/11 Q4/11
-0.5
-0.1
-0.7
Q4/10 Q1/11 Q2/11 Q3/11 Q4/11
30
Internet Services Highlights of Q4 FY2011
„ Surpassed JPY 1 trillion of GMS for full year
Rakuten Ichiba
`
„ Q4 OP: JPY 16.8bn +20.8% YoY
„ GMS through smartphones growing
„ Solid growth of sales of daily products
„ Rakuten Super Social Shop Service “S4” launched
Rakuten Travel
Others
`
`
„ Kept high GTV growth rate: +13.9% YoY
„ Smartphone GTV growing rapidly: +5x YoY
„ Business tie-up with LCC, “Peach Aviation”
„ Revenues increased due to consolidation of Play.com
„ Annual overseas GMS: +39.4% YoY
„ Transforming local businesses into Rakuten Ichiba model
31
Rakuten Ichiba Quarterly Results
„ OP growth accelerated to +20.8% YoY, OP margin reached 59.1%
Sales
(JPY mm)
Operating Profit
28,435
30,000
24,910
25,000
20,410
21,521
24,472
24,564
22,210
21,245
20,000
16,804
10,000
13,979
13,907
15,000
10,021
10,805
Sales
+14.2%
YoY
13,475
11,130
10,241
OP
+20.8%
YoY
5,000
0
Q1/10
Q2/10
Q3/10
Q4/10
Q1/11
Q2/11
Q3/11
Q4/11
32
Domestic E-Commerce GMS
„ Domestic E-Commerce GMS: +14.6% YoY
„ GMS growth of Rakuten Ichiba and Books: +14.9% YoY
(JPY bn)
400
356.4
350
311.0
300
250
239.6
256.5
304.1
300.1
271.4
251.7
200
GMS
YoY
%
6
+14.
150
100
50
0
Q1/10
Q2/10
Q3/10
Q4/10
Q1/11
Q2/11
Q3/11
*: Domestic E-Commerce = Mall (Fixed-price, Group purchase), Mobile, Business, Golf, Books, Auction (Flea market), download,
tickets, Internet Supermarket, Check Out, Off-track betting, toto, ShowTime, Media rental
Q4/11
33
Rakuten Ichiba
Unique Buyers* and Transactions
Unique buyers*
(Million)
12
Number of transactions
11.72
10.71
10.18
(Million)
50
46.74
10.74
45
10.02
41.17
10
40
40.33
38.44
36.29
35
8
30
6
25
20
oY
Y
%
1
+15.
4
oY
Y
%
6
+21.
15
10
2
5
0
0
Q4/10
Q1/11
Q2/11
Q3/11
Q4/11
Q4/10
Q1/11
Q2/11
*Unique Buyers: Number of buyers sorted by e-mail address with purchasing records during the listed 3 month period.
Q3/11
Q4/11
34
Focus at Rakuten Ichiba Business
Aim to Accelerate Growth with Merchants
„ Further strengthening ties with loyal customers
„ Adapting smartphones and tablets
„ Massive expansion of product line-up
35
Rakuten Travel, Inc Quarterly Results*
(JPY mm)
Sales
Operating Profit
7,842
8,000
6,796
6,770
Sales
+14.1%
YoY
5,956
6,000
4,916
5,403
5,115
5,485
3,715
4,000
3,235
2,902
2,545
2,000
1,925
2,061
1,906
2,032
OP
+14.0%
YoY
0
Q1/10
Q2/10
Q3/10
Q4/10
Q1/11
*: Financial results of Rakuten Travel, Inc, excluding bus services and overseas branches
Q2/11
Q3/11
Q4/11
36
Travel Business
Gross Booking Transaction Value
„ Travel GTV*: +13.9% YoY
(JPY bn)
140
120.4
120
100
90.8
103.0
104.0
103.0
90.4
93.1
81.8
80
60
40
oY
Y
%
G
3.9
1
+
TV
Q1/11
Q2/11
20
0
Q1/10
Q2/10
Q3/10
Q4/10
Q3/11
Q4/11
*: Travel GTV = Booking base (before cancellation, excl. tax)
= Domestic / International accommodation booking, International air tickets, Domestic / International DP, Domestic bus, Rental car service
37
Global Marketplace Business Expanding
Strategic implementation at global EC sites:
¾ Brand
¾ Business model changes to unique Ichiba B2B2C model
¾ Rakuten Super Points
¾ “Omontenashi” concept
Organic Growth of Annual Global Marketplace GMS:
+25.2% YoY
(Excluding Buy.com first party sales, Play.com first party sales, and Rakuten Brazil)
38
GMS Ratio from Overseas Companies
(Q4/2011)
GMS by Geographic Area Q4/2011
GMS from
overseas
companies
9.7%
GMS from EC
companies in
Japan
90.3%
39
GMS Growth from Overseas Companies
(Q4/2011)
„ GMS of Overseas E-Commerce doubled as overseas sites expanded
(JPY bn)
Overseas E-commerce GMS
40
2x
Yo
Y
*
30
20
10
(*FX-adjusted)
0
Q4/10
Q4/11
40
5
Internet Finance
41
Internet Finance Quarterly Results
„ OP grew largely after card business reorganization was completed: +37.0% YoY
Sales
(JPY mm)
Operating Profit
40,000
35,056
33,097
33,911
35,169
36,042
35,827
35,159
34,130
Sales
-3.0%
YoY
30,000
20,000
10,000
2,472
3,347
2,368
3,823
3,661
4,921
*
3,771
5,236
OP
+37.0%
YoY
656
0
Q1/10
Q2/10
Q3/10
Q4/10
Q1/11
Q2/11
Q3/11
*: Q2/11 : Adjusted Operating Profit: Excluding one-off operating expense at Rakuten KC of JPY 4,264 mm
Q4/11
42
Internet Finance Highlights of Q4 FY2011
Rakuten Card
`
„ Revenues of Rakuten Card business: +31.7% YoY
„ Shopping revolving balance: +39.1% YoY
„ Quality of loan receivables become healthier
„ Ordinary profit: +143.1% YoY
Rakuten Bank
`
Rakuten Securities
`
„ Acquired the largest number of of new accounts
in the industry in 2011
bitWallet
(E-Money)
`
„ Brand name change to “Rakuten Edy”
from June 1, 2012
„ Loan receivables of “Super Loan”: +25.0% YoY
„ Number of corporate users of foreign remittance
service surpassed 3,000 in first year since launch
43
Credit Card Business Revenue and OP*1
„ Now entering into high growth stage
Others and
Former Rakuten
KC Co., Ltd
-83.3% YoY
(JPY bn)
20
19.1
17.7
1.0
1.6
6.2
15
1.5
10
Ra
Former Rakuten
Credit Co., Ltd
+8.9% YoY
*2
ard
C
en
t
u
k
Rakuten Card
Business
+31.7 YoY
15.0
5
0
Operating Profit
+45.4% YoY
11.4
2.5
1.7
Revenue
OP
FY2010/Q4
Revenue
OP
FY2011/Q4
*1: FY2010/Q4 OP = former Rakuten KC Co., Ltd + former Rakuten Credit Co., Ltd ; FY2011/Q4 OP = Rakuten Card Co., Ltd
*2: Revenue of “Others and Former Rakuten KC Co., Ltd.” in FY2011/Q4 was corrected from 2.6 billion yen to 1.0 billion yen on April 27, 2012
44
Rakuten Card Shopping Transaction Value
and Shopping Revolving Balance*
Rakuten Card
Shopping Revolving Balance
Rakuten Card
Shopping Transaction Value
(JPY bn)
450
(JPY bn)
FY2011 YoY: +44.4%
140
120
110.5
347.2
350
101.3
313.1
300
119.8
385.5
400
281.6
100
279.4
86.1
250
80
200
60
150
+
100
93.8
.9%
6
3
Y
Yo
.1%
9
+3
40
Y
Yo
20
50
0
0
Q4/10
Q1/11
Q2/11
Q3/11
Q4/11
For figures of other credit cards, please refer to the appendix
Q4/10
Q1/11
Q2/11
Q3/11
Q4/11
45
Rakuten Bank Quarterly Results
„ Dealt with high-risk assets acquired under the previous management,
entering into a steady growth stage
Basic Profit*
(JPY mm)
Ordinary Profit
1,585
1,500
1,347
1,236
1,108
1,000
1,815
1,762
1,983
2,000
1,670
1,606
Basic Profit
+59.2%
YoY
1,320
1,312
1,107
939
746
707
Ordinary Profit
+143.1%
YoY
500
144
0
Q1/10
Q2/10
Q3/10
Q4/10
Q1/11
Q2/11
Q3/11
Q4/11
*: Basic profit = Income or loss deducted due to changes in market price or sales of investment products. Income or loss due to main business of
Rakuten Bank used instead for temporary income (loss) such as investments
46
“Rakuten Bank Super Loan”
Trends of Loan Receivables
„ Loan Receivables kept high growth, over +20% YoY
Total Members
(# of persons)
Loan receivables
(JPY bn)
160
120
Loan
receivables
Total
customers
117.4
131.2
250,000
200,000
*1
164,092
*1
80
172,569
150,000
153,267
138,480
143,340
oY
% Y
0
.
5
2
+
les
b
a
v
i
Rece
Loan
40
100,000
50,000
Dec/10
Allowance ratio*2
125.3
140.7
146.8
2.56%
Mar/11
2.67%
Jun/11
Sep/11
2.59%
*1: Loan Receivables, Total Members and Allowance are total of Rakuten Bank and Rakuten Credit
*2: Allowance ratio = Balance of allowances for doubtful accounts ÷Balance of loan receivables
2.43%
Dec/11
2.21%
47
Rakuten Securities Quarterly Results*
(JPY mm)
Sales
6,390
6,000
Operating Profit
6,254
5,694
5,217
5,411
5,094
5,015
4,821
Sales
-5.4%
YoY
4,000
1,927
1,883
2,000
1,373
1,156
1,222
1,068
837
770
OP
-37.0%
YoY
0
Q1/10
Q2/10
Q3/10
Q4/10
Q1/11
Q2/11
*: Since Q3/11, consolidated financial results are shown. Up to Q2/11, on a non-consolidated basis.
Q3/11
Q4/11
48
Rakuten Securities New Accounts /
Ratio of Applications via Rakuten Group
„ No. 1 in new account acquisitions in 2011 (190,070 accounts in 2011)
„ Achieved 70% of new accounts from Rakuten Group in October 2011
% of new accounts from Rakuten group
Monthly new accounts at major securities companies
(# of Accounts)
100%
70,000
90%
60,000
51,830
50,000
80%
70%
60%
40,000
50%
30,000
40%
20,000
30%
20%
10,000
10%
0
4Q
1Q
2Q
FY2010
3Q
4Q
0%
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
FY2011
FY2010
Rakuten
SBI
Monex
Source: Data disclosed by each company
Matsui
Kabu.com
FY2011
Via Rakuten Group
Ohters
49
6
Others
50
Others Quarterly Results
„ Profit increase at IP telephony business
Sales
(JPY mm)
10,211
Operating Profit
10,147
10,000
9,350
9,910
8,446
7,655
8,000
7,570
7,342
Sales
-1.1%
YoY
6,000
4,000
2,000
498
899
685
OP
YoY
1,213
0
-558
-645
-517
Q4/10
Q1/11
-238
-2,000
Q1/10
Q2/10
Q3/10
Q2/11
Q3/11
Q4/11
51
Others Q4 FY2011 Highlights
Fusion
Communications
(Telecom)
Rakuten Baseball
`
„ OP: JPY 433 MM (+72.7% YoY)
`
„ Sponsors and broadcasting sales in good
shape
„ Pay-Per-Call service for advertising media in
good shape
„ Total attendants at 72 home games +2.3% YoY
52
Appendix
⁃ Improvement of Calculation Method of a Part of Operating Costs
⁃ Financial Condition
⁃ Other Information
53
Plan of Improvement of
Point Related Cost Estimation
„ Currently, costs of Rakuten Super Points is recognized at the time of granting or usage,
about two months after users’ transactions (purchase, booking, etc), in order to deal with
cancellation of orders, campaigns across multiple services and so on.
„ Rakuten group is planning to improve the estimation method for point costs, including a
system for the preparation of introduction of IFRS. Costs for regular points will be
recognized at the time of transactions. Costs for limited-time points will be recognized at the
time of transactions or usage, depending on type of campaign.
CY20XX
Current
Recognized at
Regular: Granting points
Limited-time: Usage of points
Nov.
Dec.
Jan.*1
Feb.*1
Mar. ...
Feb.
Mar. ...
Users’
transactions
Record on PL
CY20XX
Planned
Recognized at
Regular: Transactions
Limited-time: Transactions or grant
20XX+1
Nov.
20XX+1
Dec.
Jan.
Users’
transactions
Record on PL
*1: The point costs (partly promotion costs) recognized in Jan. and Feb. 2011 were approx. JPY 4 billion in
total for the Ichiba and Card businesses, where this planned change will have the biggest impacts
54
Reclassification of Part of
Advertisement Costs (FY2011)
„ Part of advertisement costs was reclassified from cost of sales to advertisement and
promotion expenses in SG&A expenses. The amount of such costs from Jan. 2011 to Dec.
2011 was JPY 9,479 million, all of it reclassified in Q4/2011. This treatment is as a result of
careful examination of cost of sales and SG&A expenses through the IFRS preparation
project. The amount of such advertisement costs included in cost of sales in FY2010 totaled
JPY 8,225 million.
(JPY MM)
Q4/11
Q4/10
Sales
93,588
Previous
method
109,442
Cost of Sales
20,332
29,127
-9,479
19,648
Gross Profit
73,255
80,314
+9,479
89,793
Selling, General and Administrative Expenses
53,691
57,141
+9,479
66,620
Point Costs
2,344
2,220
-
Advertisement and promotion expenses
7,115
8,686
+9,479
18,166
13,473
14,868
-
14,868
Depreciation
4,364
4,120
-
4,120
Communications and Maintenance expenses
3,798
3,686
-
3,686
Outsourcing expenses
6,239
6,760
-
6,760
Expenses for doubtful accounts
4,228
1,897
-
1,897
12,127
14,901
-
14,901
19,563
23,173
-
23,173
Personnel expenses
Others
Operating Profit
Change
-
Reported
109,442
2,220
55
Financial Condition
56
Financial Institutions Debt*1 Trend
(JPY bn)
500
441.5
406.9
400
368.2
399.2
346.8
181.4
300
168.0
218.2
165.6
Others
200.2
200
260.0
100
202.6
238.8
180.9
146.5
Rakuten
Card Co.,
Ltd.*2
0
Dec/10
Mar/11
Jun/11
*1: Debt from outside financial institutions = Bonds + CP + short-term debt + long-term debt
*2: Up to Jun/11, results of former Rakuten KC are shown
Sep/11
Dec/11
57
Rakuten, Inc. (Non-consolidated)
Debt and Cash
(JPY bn)
Working capital
M&A
Investment and lending to Card biz.
Cash and Deposits
NCD
175.3
158.6
136.5
125.7
122.5
99.0
64.0
40.6
76.6
50.0
40.0
50.0
48.9
46.9
47.7
55.1
15.6
20.6
27.0
21.1
10.5
5.1
37.6
16.0
35.6
21.3
35.6
21.7
5.1
5.3
16.2
43.0
5.0
18.0
Borrowing Cash and
Deposits
Borrowing Cash and
Deposits
Borrowing Cash and
Deposits
Borrowing Cash and
Deposits
Borrowing Cash and
Deposits
Dec/10
Mar/11
Jun/11
Sep/11
Dec/11
4.7
58
Rakuten Group : Balance Sheets
(As of December 31, 2011)
Rakuten Group (Consolidated)
(JPY bn)
Cash and
deposits
88.9 Debt from
financial institution
(outside the group)
Graph legend
Cash and
deposits
346.8
Other
Assets
Other
Assets
5.0
18.4
286.2
Rakuten, Inc.
(Non-Consolidated)
Total Net
Assets
*JPY34.0bn of borrowing at
Rakuten Card is from
Rakuten, Inc.
158.6
517.9
802.1
748.5
*JPY11.0bn of borrowing
at Rakuten Securities is
from Rakuten Group
48.8
17.5
23.5
89.5
180.5
24.1
274.4
234.9
Total Assets
1,914.5
Rakuten Securities
Rakuten Card Co., Ltd. (Non-Consolidated)
4.7
Other
Liabilities
304.9
Total Net
Assets
*JPY5.0bn of borrowing at Rakuten
Bank is from Rakuten, Inc.
741.5
Liabilities at
Securities Business
Other
Liabilities
Rakuten Bank
(Consolidated)
Deposit
At
Banking
Business
1,825.5
Debt
42.9
Total Assets
522.6
Total Assets
820.6
355.1
311.7
290.1
123.4
33.6
31.2
Total Assets
335.2
Total Assets
372.6
*: Rakuten Securities (non-consolidated), Rakuten Card Co., Ltd. , Rakuten, Inc. (non-consolidated) and Rakuten Bank also including internal elimination
*: Debt = Corporate bonds + CP + Short-term borrowings + Long-tem borrowings
59
Cash Flow Breakdown : Jan - Dec 2011
(JPY bn)
Beginning
End
(Dec 31, 2010)
(Dec 31, 2011)
Non-Financial Businesses
Operating Investing Financing
Financial Businesses
Operating
Investing
Profit
(adjusted)
12.2
15.3
20.6
14.9 20.2
78.8
Financing
Stock of
Common
subsidiaries
Sale Purchase
Tax
64.9
47.7
Tax
Operating CF
(Exc. Tax)
149.7
33.5
3.6
Change in
assets & liabilities
100.7
14.9 5.2
54.8
Other
investing CF
Change in
securities at R-Bank
Increase of
cash and cash equivalents
Increase of
cash and cash equivalents
+JPY63.4bn
-JPY38.2bn
60
Breakdown of Cash Flow by Financial Businesses
and Non-financial Businesses : FY2011 (1)
(JPY bn)
Overview of cash flow statements for FY2011
Ⅰ Net cash provided by (used in) operating activities
Income (loss) before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Loss (gain) on valuation of securities for banking business
Loss on business restructuring
Other loss (gain)
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in accounts receivable-installment
Decrease (increase) in beneficial interests in securitized assets
Decrease (increase) in operating loans receivable
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accounts payable-other and accrued expenses
Increase (decrease) in deposits for banking business
Decrease (increase) in call loans for banking business
Decrease (increase) in cash loans and bills discounted for banking business
Decrease (increase) in operating receivables for securities business
Increase (decrease) in operating payable for securities business
Increase (decrease) in loans payable secured by securities for securities business
Other, net
Subtotal
Payments for guarantee deposits for business operation
Proceeds from guarantee deposits for business operation
Income taxes paid
Other, net
Net cash provided by (used in) operating activities
Consolidated
(14.4)
16.9
7.8
(0.7)
2.2
77.1
5.5
(4.2)
13.5
(88.6)
22.6
21.2
21.7
28.2
(24.0)
(29.7)
28.9
(21.5)
(4.0)
(8.3)
50.1
(0.3)
2.1
(23.1)
(1.2)
27.5
*: Breakdown between financial and non-financial businesses are based on internal estimation and non-audited.
Financial
(72.9)
6.8
3.2
(1.0)
2.2
77.1
0.0
13.5
(88.6)
22.6
20.3
16.6
28.2
(24.0)
(29.7)
28.9
(21.5)
(4.0)
(12.0)
(34.1)
(0.3)
2.1
(2.4)
(1.2)
(36.0)
NonFinancial
58.5
10.0
4.6
0.3
(4.3)
0.8
5.1
3.6
78.8
(20.6)
58.1
Common
5.5
5.5
5.5
61
Breakdown of Cash Flow by Financial Businesses
and Non-financial Businesses : FY2011 (2)
(JPY bn)
Overview of cash flow statements for FY2011
Ⅱ Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Acquisition of securities for banking business
Proceeds from sales and redemption of securities for banking business
Purchase of investments in subsidiaries
Purchase of subsidiaries stocks with change in consolidation
Proceeds from sales of subsidiaries stocks with change in consolidation
Purchase of property, plant and equipment
Purchase of intangible assets
Other payments
Other proceeds
Interest and dividends income received
Net cash provided by (used in) investing activities
Ⅲ Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Increase (decrease) in commercial papers
Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Interest expenses paid
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Ⅳ Effect of exchange rate change on cash and cash equivalents
Ⅴ Net increase (Decrease) in cash and cash equivalents
Ⅵ Cash and cash equivalents (as of December 31, 2010)
Ⅶ Increase in cash and cash equivalents from newly consolidated subsidiary
Ⅷ Cash and cash equivalents (as of December 31, 2011)
Consolidated
Financial
NonFinancial
Common
(9.9)
5.5
(390.8)
455.8
(7.4)
(7.4)
33.5
(3.8)
(15.1)
(6.4)
2.2
0.4
56.3
(9.5)
5.3
(390.8)
455.8
(1.5)
(0.5)
(6.3)
(2.9)
1.8
51.1
(0.3)
0.1
(5.9)
(7.4)
33.5
(3.2)
(8.7)
(3.5)
0.3
0.4
5.1
-
(19.2)
(30.2)
173.3
(143.5)
(4.8)
(1.5)
(2.6)
(6.0)
(34.6)
(1.1)
48.1
100.7
0.8
149.7
(17.9)
(30.2)
55.0
(60.5)
(1.2)
(54.8)
(39.7)
‐
‐
‐
(1.3)
118.3
(82.9)
(4.8)
(1.5)
(2.6)
(4.7)
20.2
83.5
‐
‐
‐
(1.1)
4.3
‐
‐
‐
*: Breakdown between financial and non-financial businesses are based on internal estimation and non-audited.
62
Other Information
63
Enhanced Cross-use Ratio*
Cross-Use Ratio
50%
45.4%
46.5%
Dec/10
Dec/11
40.7%
40%
30%
20%
10%
0%
Dec/09
*: Purchasing ratio of Rakuten members who have utilized other Rakuten services during the past 12 months of the listed month.
Applicable services are limited to those which can earn Rakuten Super Points (excl. Securities)
64
Amortization of Goodwill
(JPY mm)
New Segment Old Segment
Internet
Finance
Others
Q2/10
Q3/10
Q4/10
Credit Card
246
246
246
246
Banking
282
429
435
460
Securities
95
99
169
94
E-Money
30
58
15
15
581 1,055
936
E-Commerce
Internet
Services
Q1/10
832
Q1/11
829
Q2/11
825
Q3/11
677
Q4/11
841
Travel
12
12
12
12 1,007 1,023 1,138 1,280
Portal and Media
36
16
16
16
Portal and Media
(O-net, Inc.)
44
44
44
44
Professional Sports
-0
-0
-20
-
Telecommunication
-5
-5
-5
-5
Total
39
41
41
41
1,575 1,483 1,970 1,823 1,876 1,890 1,858 2,164
*: Amortization of positive goodwill is included in SG&A expenses. Amortization of negative goodwill is included in non-operating revenue.
65
Rakuten Group’s CAPEX*1
(JPY bn)
Non Consolidated
2010
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Hardware
1.59
0.83
1.14
0.18
0.53
0.39
0.19
0.19
Software
1.39
1.48
1.96
1.69
1.84
1.51
1.48
1.79
Total
2.98
2.32
3.10
1.87
2.37
1.90
1.67
1.99
Hardware
2.81
1.26
1.71
1.44
1.63
1.09
0.74
1.13
Software
3.47
3.10
4.12
3.97
4.44
3.23
3.88
3.86
Total
6.29
4.37
5.83
5.42
6.07
4.32
4.62
5.00
*2
*2
Consolidated
2011
*1 : Since Q1/10: Acquisition Base (Including Professional Sports Business)
*2 : Depreciation of property, plant and equipment (excluding leased assets) was computed by the declining-balance method and changed to
straight-line method since 2011. As a result of this change, depreciation was reduced by JPY 1,056mm during the nine months ended December
31, 2011.
66
Rakuten, Inc (non-consolidated)
„ Balance Sheets
„ Income Statements
As of Dec 31, 2011
CURRENT ASSETS
Cash and deposits
Accounts receivable-trade
Other current assets
Allowance for doubtful accounts
129.5 CURRENT LIABILITIES
4.7 Account payable-trade
37.1 Short-term debts
88.0 Accounts payable
-0.3 Income taxes payable
Advance receipt
Reserve for point program
(Allowance for doubtful accounts)
393.1
6.1
14.6
372.2
-0.7
(Allowance for investment loss)
-1.3
NONCURRENT ASSETS
Property, plant and equipment
Intangible assets
Investment and other assets
TOTAL ASSETS
Other current liabilities
LONG-TERM LIABILITIES
TOTAL LIABILITIES
SHAREHOLDERS' EQUITY
Capital stock
Capital surplus
Retained earnings
Treasury stock
VALUATION AND
TRANSLATION
Unrealized gain on
available-for-sale securities
Deferred gains or losses on
hedges
Subscription rights to shares
TOTAL NET ASSETS
TOTAL LIABILITIES
522.6
AND NET ASSETS
*: Amounts Less Than 0.1 Billion Omitted
(JPY bn)
Three months ended Dec 31, 2011
119.5
3.7
27.3
20.5
0.2
5.1
15.0
47.4
128.7
248.2
272.1
107.9
116.7
51.0
-3.6
Sales
Cost of Sales
Gross Profit
Sales, General and Administrative
Expense
Personnel costs
Advertising and sales promotion
Depreciation
Communication and maintenance
Outsourcing
Others
Operating Profit
Non-Operating Profit
Non-Operating Expense
Ordinary Profit
Extraordinary income
Extraordinary loss
Net income before tax
Income taxes-current
Income taxes-deferred
Net Income
1.1
1.0
0.0
1.1
274.4
(JPY bn)
41.5
7.9
33.5
17.3
6.7
4.5
1.3
1.1
3.6
0.0
16.2
0.2
0.9
15.4
0.3
0.8
15.0
0.1
6.5
8.3
522.6
67
Number of Merchants
„ Number of merchants: +3.7% YoY
(No. of Merchants)
40,000
37,173
37,047
37,746
38,363
38,553
Dec/10
Mar/11
Jun/11
Sep/11
Dec/11
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
68
Credit Card Business:
Revenues and Expenses
„ Revenues and Expenses
Rakuten KC
Q2/11 (1)
Revenues
General services
Card shopping
Others
Financing
Card cash advances
Loan card
Others
Credit guarantee (Rakuten Credit)
Others
Total revenues
*
(incl. effect of securitization GAAP )
Operating expenses
Personnel costs
General expenses
Interest expenses
Costs related to doubtful accounts
Interest repayment expenses
Total operating expenses
Operating profit
*
(incl. effect of securitization GAAP )
(JPY mm)
Rakuten Credit
Q2/11 (2)
Q2/11
(1) + (2)
Rakuten KC
Jul (1)
Rakuten Card
(Rakuten Credit)
Jul-Sep (2)
Q3/11
(1) +(2)
Q4/11
9,834
0
9,834
3,569
6,401
9,970
10,455
9,816
18
0
0
9,816
18
3,562
7
6,390
10
9,952
18
10,438
16
4,166
13
4,179
1,325
559
1,884
915
2,738
1,411
15
0
0
13
2,738
1,411
29
878
441
5
511
24
23
1,390
465
28
848
38
29
0
4,004
18,004
1,421
178
1,613
1,421
4,182
19,617
0
1,588
6,482
1,511
2,744
11,217
1,511
4,332
17,700
1,636
4,708
17,716
(17,673)
(1,613)
(19,286)
(6,406)
(12,470)
(18,876)
(17,415)
1,420
9,845
1,795
3,328
4,264
20,653
-2,648
158
332
5
686
0
1,183
429
1,579
10,177
1,801
4,015
4,264
21,836
-2,218
566
3,612
551
951
0
5,681
801
789
6,779
983
1,664
0
10,217
1,000
1,356
10,391
1,535
2,615
0
15,898
1,801
1,264
11,071
1,160
1,637
0
15,134
2,582
(-2,980)
(429)
(-2,550)
(724)
(2,253)
(2,977)
(1,731)
*: Amount of revenues in brackets "()" includes effects of securitization.
(JPY mm)
[Pro forma] Revenues of Rakuten Card biz.
Q2/11
12,771
Q3/11
13,799
Q4/11
15,034
69
Credit Card Business: Transaction Volume*
„ Composition of Transaction Volume
(JPY mm)
General services
Card shopping
Others
Financing
Card cash advances
Loan card
Others
Total transaction volume
Q4/10
304,331
Q1/11
299,778
Q2/11
332,863
Q3/11
354,446
Q4/11
386,800
303,708
623
299,120
657
332,290
573
353,767
678
386,132
668
9,463
9,442
10,190
9,999
10,228
8,484
979
8,536
905
9,354
835
9,460
539
9,877
350
4,074
4,097
4,093
4,279
4,475
317,869
313,318
347,148
368,725
401,505
*:Up to Q2/11, Rakuten KC Co., Ltd results are shown. Q3/11 results comprise Rakuten KC Co., Ltd (Jul) plus Rakuten Card Co., Ltd (Aug and Sep)
Since Q4/11, results of Rakuten Card., Ltd are shown.
70
Credit Card Business:
Balance of Loan Receivables
(JPY mm)
General services
Card shopping
Card shopping (Securitized)
(Securitized, off-balance)
(Securitized, on-balance)
incl. Revolving balance (principal)
Others
Financing
Card cash advances
Loan card
(Securitized, off-balance)
(Securitized, on-balance)
Others
Installment
Others
Credit guarantee
(Off-balance guarantees)
Others (Off-balance)
Total balance (incl. off-balance)
(Total on-balance)
Credit guarantee for Rakuten Bank
(Off-balance guarantees)
(On-balance loan receivables)
10/4Q
201,897
11/1Q
197,753
11/2Q
223,167
11/3Q
219,393
11/4Q
257,982
201,259
137,361
101,039
36,321
97,985
638
197,190
141,364
105,049
36,314
105,533
563
222,691
150,781
114,683
36,098
112,792
475
219,140
172,585
172,585
0
110,836
253
257,727
188,833
188,833
0
120,064
255
159,837
150,733
141,460
65,836
64,233
65,428
43,517
9,035
17,930
50,890
60,961
39,035
100
16,024
50,736
56,632
34,880
100
14,406
49,946
17,978
1,364
0
0
46,494
18,455
1,446
0
0
44,331
802
31,266
708
30,013
659
28,510
601
27,426
476
26,089
30,215
27,749
1,051
29,245
26,855
767
27,946
25,636
564
27,007
24,775
418
25,783
23,630
306
393,804
379,209
393,798
313,258
348,782
254,928
246,436
252,815
115,479
136,012
115,685
123,630
129,684
139,240
145,350
108,054
7,630
116,132
7,497
122,201
7,482
131,837
7,402
137,993
7,356
*1: Up to Q2/11: Loan receivables are results of former Rakuten KC Co., Ltd. Credit guarantees (Rakuten Bank Super Loans) are results of former
Rakuten Credit Co., Ltd
*2: Since Q3/11 shows results of Rakuten Card Co., Ltd
71
Credit Card Business:
Allowance for Doubtful Accounts
„ Balance of Uncollected Loan Receivables and Allowances
(JPY mm)
Rakuten Card
Normal
Doubtful (4months-and-over-delinquent)
Others (incl. re-contract)
Normal
Doubtful (4months-and-over-delinquent)
Sub-total balance of loan receivables
Normal
Doubtful (4months-and-over-delinquent)
% of doubtful accounts
Secured
Total balance of loan receivables
Allowance for doubtful accounts
Allowance ratio
Write-off for bad debt
Q3/11
236,456
„ Other loan receivables
(including re-contract)
84.84%
decreased
1.80%
Q4/11
% of total
277,638
86.64%
231,048
5,407
271,883
5,754
47,223
42,814
13.36%
33,416
13,806
30,108
12,706
9.40%
3.97%
283,679
264,465
19,214
6.77%
4,799
288,478
320,453
301,991
18,461
5.76%
4,762
325,215
98.54%
94.24%
5.76%
1.46%
100.00%
22,377
7.8%
2,479
21,408
6.6%
2,142
„ 4 months and over
delinquent loan ratio also
declined
„ As a result of
improvement of quality of
loans and lower
allowance ratio,
a JPY 1,066 mm reversal
of allowance for bad debt
was recorded in Q4
„ Loan receivables and Allowance of Former Rakuten Credit, Inc*
(JPY mm)
Loan receivables
Credit guarantee
Allowance
Write-off for bad debt
Q3/11
7,402
131,837
3,087
652
Q4/11
7,356
137,993
3,243
648
*: Figures shown are the credit guarantee business of the Rakuten Card Co., Ltd (renamed from former Rakuten Credit, Inc)
72
Rakuten Bank, Ltd. and Its Subsidiaries PL
(JPY mm)
Q4/10
Settlement
Q1/11
Q2/11
Q3/11
Q4/11
1,465
1,111
1,461
1,586
1,503
Card
243
296
322
318
330
Financial products
487
535
537
542
472
Others
375
444
372
338
331
1. Income (loss) from commission
2,572
2,387
2,694
2,785
2,637
2. Income (loss) from investment
1,289
1,613
1,521
1,358
1,491
3. Operating expenses
3,165
2,902
3,091
3,233
3,269
Basic profit　(exc. loan)
696
1,098
1,124
910
859
Basic profit　(loan)
410
486
546
695
902
Total basic profit (A)*1
1,107
1,585
1,670
1,606
1,762
Non-basic profit (B)*2
-360
-877
312
-286
52
Ordinary profit (A+B)*3
746
707
1,983
1,320
1,815
*1: Basic profit = Income or loss deducted Income (loss) due to changes in market price or sales of investment products. Income or loss due to main
business of Rakuten Bank instead if temporary income (loss) such as investments
*2: Non-basic profit = Income or loss due to changes in market price or sales of investment products
*3: Before accounting adjustments (amortization of goodwill included)
73
Rakuten Bank, Ltd. Assets and Deposits
(JPY bn)
Dec 31 2010
Market Value
JGB, Local Government Bonds,
Corporate Bonds
JGB(Japanese Government Bonds)
Others*1
Loan Receivables
Stocks
ABS (securitized loan recrivables)
Funds
Hedge Funds (FOF)
Others
ABS (Real estate products)
Private Funds*2
CMBS (with market value)
CDO
Total
Dec 31 2011
Market Value
Changes in Market
Value from Dec 31
2010 to Dec 31
2011
Unrealized gains
and losses
(Rakuten
consolidated)
323.3
288.4
-34.8
0.0
0.0
154.6
168.6
125.8
0.5
211.3
7.6
4.1
3.5
16.7
6.6
10.1
3.4
688.9
141.0
147.4
155.6
0.9
236.9
4.8
2.4
2.4
5.0
0.9
4.1
2.9
695.0
-13.6
-21.2
29.7
0.4
25.6
-2.7
-1.6
-1.1
-11.6
-5.7
-5.9
-0.5
6.1
0.0
1.0
0.0
1.0
1.4
-1.4
0.0
0.8
0.1
-0.1
0.2
0.2
0.2
-0.0
1.2
*1: JGB, Local government bonds, Corporate bonds include government-guaranteed bonds, etc
*2: Some funds have been valuated at market value since April 1, 2010
Dec 31 2010
Deposit Balance
Ordinary Deposits
Time Deposits
Other Deposits*
Allowances
(as of Dec 31
2011)
721.2
327.0
323.4
70.7
*: Other deposits include deposits in foreign currencies and others
Dec 31 2011
749.0
393.5
283.8
71.5
(JPY bn)
Changes
27.7
66.4
-39.5
0.7
74
Rakuten Securities Quarterly Change in
Stock Brokerage Trading Value
„ Trading value at historical low due to weak domestic stock markets
Domestic Stock Brokerage Trading Value
（JPY bn）
5,841
6,000
4,983
5,323
3,733
4,000
4,129
3,990
4,141
3,442
2,000
0
10/1Q
10/2Q
10/3Q
10/4Q
11/1Q
11/2Q
11/3Q
11/4Q
75
Group Membership*1
(Million persons)
10/Dec
11/Sep
11/Dec
YoY
68.98
73.60
75.18
+9.0%
Rakuten Bank
3.65
3.84
3.91
+6.9%
Rakuten Securities
(General Account)
1.04
1.18
1.23 +17.5%
Rakuten Members*2
*1: Figures include members using duplicate services
*2: Rakuten Members excluding non-active users who never use any Rakuten services, and excluding members who logged in during the period but
later withdrew their membership: Dec 2010: 42.51m, Sep 2011: 46.99m, Dec 2011: 48.57m. Definition changed from 2011.
Sep 2010 has been retroactively adjusted.
76