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Rakuten, Inc.Annual Report 2012Annual ReportFiscal Year Ended December 31, 2012Rakuten, Inc.TEL: 81-3-6387-1111 URL: http://global.rakuten.com/corp/investors/Shinagawa Seaside Rakuten Tower, 4-12-3 Higashishinagawa, Shinagawa-ku, Tokyo 140-0002, JapanRakutenis UniqueAnnual ReportFiscal Year Ended December 31, 2012
Our MissionCorporate InformationSince Rakuten’s foundation in 1997, it has been our corporate mission to empower people andsociety through the Internet, while aiming to become the No. 1 Internet services company in theworld. Many online shopping sites at the time of our foundation were little more than online webcatalogs, and few believed that consumers would buy products and services on the Internet. Itwas during such a time that we boldly launched the Internet shopping mall Rakuten Ichiba. Oursite was created based on the concept of not having Internet-savvy people run the business, butcreating a platform that enabled ordinary people skilled in retail to open their own online shops.Beyond Rakuten Ichiba, the Rakuten Group has expanded into a diverse array of one-stoponline services in Japan, including travel, eBooks & eReading, banking, securities, credit cards,Company OverviewNumber of Shares and Shareholders(As of December 31, 2012)NameRakuten, Inc.FoundedFebruary 7, 1997Service LaunchedMay 1, 1997IPOApril 19, 2000Capital108,255 million yen(As of December 31, 2012)Employees9,311 (Consolidated)Major ShareholdersHeadquartersShinagawa Seaside Rakuten Tower, 4-12-3Higashishinagawa, Shinagawa-ku,Tokyo 140-0002, Japan(As of December 31, 2012)insurance, and professional sports. We are also accelerating our overseas expansion andsharing with our overseas group companies the unique business model and ecosystem that weNumber of Shares Authorized3,941,800,000Total Number of Shares Issued1,320,626,60083,450Number of ShareholdersThe Company splited one share into 100, and adopted Share Unit System, which defines 100 shares as one trading unit, on July 1, 2012.NameNumber ofsharesPercentageheldhave built in Japan—starting with our e-commerce, eBooks & eReading, and travel businesses—Crimson Group, Inc.226,419,00017.14along with our corporate commitment to the empowerment of individuals and society. We willHiroshi Mikitani203,072,00015.38continue to move forward to the creation of a truly global Rakuten ecosystem.Haruko Mikitani141,125,00010.69JP MORGAN CHASE BANK 38005563,428,4634.80Masuda and Partners Inc.33,161,0002.51THE CHASE MANHATTAN BANK 38503630,171,3002.28STATE STREET BANK AND TRUST COMPANY25,926,9631.96CBNY-ORBIS FUNDS23,878,9031.81MELLON BANK, N.A. AS AGENT FOR ITSCLIENT MELLON OMNIBUS US PENSION21,006,7411.59JP MORGAN CHASE BANK 38516419,991,6001.51Stock nvolume in Japan:Number ofRakuten Ichibamerchants:4Over40,000 trillionStock Code4755 (JASDAQ Tokyo Stock Exchange)Fiscal YearJanuary 1 to December 31Month of Annual GeneralShareholders’ MeetingMarchShareholderRecord DateDecember 31Transfer AgentSumitomo Mitsui Trust Bank, LimitedContactSumitomo Mitsui Trust Bank, LimitedNotes: Crimson Group, Inc. implemented an organizational change as of December27, 2012, and structured as Crimson Group, LLC.Stock Transfer Agency Department2-8-4 Izumi, Suginami-ku,Tokyo 168-0063, JapanClassification by Type of Shareholder(As of December 31, 2012)Cross-use ratio:Over50%Share ofJapanese onlineretail market:EC/Internetbusinesses in20Nearlycountries/regions30%IndividualsForeign financial institutionsand individualsInquiryOther domestic corporationsDomestic financial institutionsInvestor Relations, Rakuten, Inc.URL s firmsOthers(As of December 31, 2012)Contents11216172021To Our ShareholdersA CSR Partnership for Sustained GrowthFinancial HighlightsReview of OperationsBoard of DirectorsCorporate Governance2632Financial SectionConsolidated Subsidiaries andAffiliated Companies3435Corporate HistoryCorporate nary StatementIn this report, unless indicated otherwise, references to “Rakuten”, “Rakuten Group”, “we”,”our” and “us” are to Rakuten, Inc. and its consolidated subsidiaries and consolidated affiliates. Statements regarding current plans, strategies, beliefs and other statements that arenot historical facts of the Rakuten Group are forward-looking statements.Such forward-looking statements are based on management’s assumptions and beliefsin light of information currently available, and it should be noted that risks and unforeseenfactors could cause actual results to differ significantly from those discussed in the report.We do not intend to update these forward-looking statements, whether as a result of newinformation, future events or otherwise, except as required by applicable laws.“Rakuten”,andare registered trademarks of Rakuten, Inc. in Japan.Origins of the Name RakutenRakuten Ichiba is named after Rakuichi-Rakuza , the first free and open marketplacein Japan, opened in the 16th century.When used as a verb, raku is written with a Chinese character meaning to enjoyoneself ( 楽 ). The same character is used in Rakuten, which means “positive spirit.” Thename Rakuten Ichiba literally means a “market of positive spirit,” where shopping isentertainment. These words symbolize the driven, forward-looking nature of ourbusiness. That is why we named our company Rakuten, Inc.35
To Our ShareholdersUnique?Absolutely,and transferableworldwideShop-centric rather than product-centric,the Rakuten Ichiba model is both uniqueand highly profitable. With our long-termgoal to be the global No. 1 Internet servicescompany, we are focusing on our Ichibamarketplace e-commerce to buildcompetitive positions internationally. Signsin 2012 confirm we are on the right track.Hiroshi MikitaniChairman and CEO1
To Our ShareholdersResults for Fiscal 2012Our consolidated financial results forThese results emerged from anfiscal 2012 (the year ended Decemberenvironment transformed by the31, 2012) included record highs forspread of the Internet, its evolution asrevenue and operating income,a social infrastructure platform, andmarking our fifth consecutive year ofits continuing role as a growth driveroperating income growth excludingfor the world economy. First, theadditional line items, as well as ourRakuten Group has gained an15th consecutive year of revenueoverwhelming advantage in thegrowth. On these results, we paid aJapanese e-commerce market,dividend of 3 per share for fiscalespecially through Rakuten Ichiba.2012 ( 250 per share for fiscal 2011).Second, solid earnings trends haveThis is equivalent to 300 per sharestarted to emerge in the Internetwhen a 1:100 share split on July 1,finance business. Third, we are2012 is taken into account.starting to reap the benefits ofNet income for fiscal 2012 wasintroducing the Rakuten business 21,136 million (IFRS). This resultmodel in other countries. Byreflects additional line items, includingintroducing our unique corporaterestructuring losses resulting from thephilosophy of empowering peoplereorganization of our U.K. consolidatedand society through the Internet, wesubsidiary Play.com, as well as ahope to continue to grow the Rakutengoodwill impairment loss caused by aGroup globally and to raisechange in the business model of ourshareholder value.U.S. subsidiary Buy.com.“ Rakuten’s domestice-commerce businessgenerated grossmerchandise sales(GMS) of 1.4 trillion in2012, and this growthhas continued in thecurrent fiscal year. Weare now workingtoward our next goal,GMS of 10 trillion. ”Strengthening our Unique Business PlatformRakuten aims to introduceRakuten Ichiba to provide a uniqueconsumers to the ‘joy of discovery’merchant-centered Internet shoppingthrough our Ichiba Internet shoppingmall. We have also developedmall, and to create an environmentinitiatives based on our “Shopping iswhere merchants and consumersEntertainment” concept and developedcan interact in the same way theytargets for the realization of the “Happymight in a real-world marketplace,Merchants Happy Shoppers where transactions can be engaging,Happy Commerce” formula.exciting, informative and personal.Rakuten’s domestic e-commerceTo do this, we have created abusiness generated gross merchandisebusiness model that satisfies bothsales (GMS) of 1.4 trillion in 2012,consumers and merchants, by usingand this growth has continued in the2
current fiscal year. We are nowplace greater emphasis on theworking toward GMS of 10 trillionRakuten brand.and sustainable growth.The development of the globalBy providing one-stop access toRakuten ecosystem is expected toInternet-based services, we haveaccelerate as a result of recentachieved positions of leadership in allacquisitions, including the Canadianof our business segments in Japan.e-book company Kobo, Alpha DirectThe growth of Rakuten Ichiba has beenServices (ADS), which is a majorparalleled by a sustained rise in thelogistics company in France, and thepower of the Rakuten brand in Japan.Spanish video streaming companyAwareness of Rakuten is alsoWuaki.TV. We see these moves as therising in overseas markets. Rakutenstart of a new transition in ouris the only Japanese companyoverseas e-commerce activities.selected for inclusion among the 50In July 2012, two years after firstglobally successful companiesannouncing our Englishnization project,whose growth strategies wereEnglish became the official languageanalyzed in the book Grow, by Jimthroughout the Rakuten organization.Stengel, a former P&G globalThis change has already producedmarketing executive who is now asurprising benefits by stimulatingwell-known marketing consultant.communication among the manyOver the past few years thenationalities within the Rakuten Group,Rakuten Group has rapidly expandedand by accelerating the introduction ofits activities globally. However, wethe Rakuten model by overseas groupregard 2012 as the starting point forcompanies. The use of a commonour evolution into a truly globallanguage is also helping us to sharecompany. We apply our B2B2Cstories of our successes in Japan, alongmarketplace business model to everywith our technologies and expertise,overseas group company that wewith group companies worldwide.acquire. At the same time we areAnother benefit is the fusion ofensuring that all overseas employeesJapan’s unique culture of omotenashigain a thorough understanding of the(hospitality) with advanced technologiesconcept of Rakuten Shugi, which isand development methods fromthe corporate culture and philosophyWestern countries. We believe thatdeveloped by the Rakuten Group inprocess is starting to generate new,Japan, so that they can identifyunique values.themselves as part of a groupIn 2013, we aim to transformorganization united by highRakuten into a truly global organizationaspirations and work with us tothat is backed by the uniqueness andachieve ambitious goals.strengths we have built up in Japan,We are also working to developpromote our regional headquarters inthe Rakuten brand into a strongAsia, Europe and the Americas,presence in overseas markets, in partwhilst globalizing our humanby changing company names toresources platform.3“ Over the past fewyears the RakutenGroup has rapidlyexpanded itsactivities globally.However, we regard2012 as the startingpoint for our evolutioninto a truly globalcompany. ”
To Our Shareholders“ In 2012, we continuedto enhance servicesfor smartphone andtablet users, whilealso using campaignsbased on the RakutenSuper Points system,to motivate users tomake purchases. ”Initiatives and Results in Business SegmentsDomestic e-Commercethe number of merchants increased toRakuten Ichiba is the global pioneer ofover 40,000. There was also a rapidthe B2B2C marketplace, whichincrease in transactions via mobileprovides the platform, traffic anddevices and tablets as a percentage ofexpertise to empower even small-scalethe gross transaction volume ofretailers to set up their businesses onRakuten Ichiba. There was athe Internet. In addition to theparticularly significant rise in theoverwhelming strength of Rakutennumber of smartphone applications.Ichiba, the rapid proliferation ofWe responded to this expansionsmartphones and tablets and theof our e-commerce business in Japanresulting lifestyle changes alsoby further strengthening our domesticcontributed to the sustained expansionlogistics systems. In July 2012, weof our business in this segment.launched our own delivery service forIn 2012, we continued to enhancefood items ordered from our Internetthe Rakuten Group’s services forsupermarket, Rakuten Mart. In additionsmartphone and tablet users, whileto our existing distribution center inalso using campaigns based on theIchikawa City, Chiba Prefecture, whichRakuten Points system, such aswas opened in 2010, we commencedRakuten Super Sales, to motivateconstruction of a new center inusers to make purchases. At the sameKawanishi City, Hyogo Prefecture. Thetime, we further enhanced merchanttarget date for completion is Novembersupport and improved next-day2013. We will use these distributiondelivery systems and other aspectscenters to strengthen the Rakutenof our services. In September 2012,Super Logistics system.we introduced the new “Diamond”In November 2012, we acquiredrank as the top level in the Rakutenthe French logistics company AlphaPoints Club with the aim of providingDirect Services (ADS). We plan tousers with additional motivation touse that company’s advancedmake purchases.technology and expertise in ourIn December 2012, we launcheddistribution centers.Rakuten Smart Pay, a credit cardGross booking transaction volumesettlement service that can be used via(GTV) for our travel services grew bysmall devices, such as smartphones.12.9% year on year income. In additionBy keeping installation costs low, weto strong sales of Dynamic Packages,encouraged merchants to introducethis growth also reflects our efforts tosmartphone settlement services.diversify income sources, includingThese initiatives were reflected inimprovements to the consolidatedfirm trends in the numbers of bothsettlement service for corporateunique purchasers and orders, whileaccommodation bookings.4
Rakuten Ichiba and Books’GMS surpassed 1 trillionOver 1trillionin October 2012High Value AddedRakutenSuper PointsThe No.1 point programRakuten Super Points is the most popular loyaltypoints program in Japan. Points can be earnedthrough shopping and various other services inthe Rakuten Group's ecosystem.’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 244JCB Card1215JAL117Source: Point “Tanken” ClubGrowth ofDomestic EC MarketRakutenSuper LogisticsMobile GMS674timesin Rakuten Ichiba2001 1’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12Rakuten Travel’s gross bookingtransaction value increasedSet to cover 65%of population, 71% ofvolumes of five facilitiesTohoku Area12.9 % 475.1billionYoYKawanishi City, HyogoKyushu AreaChukyo AreaIchikawa City, ChibaCompletedScheduled5’08 ’09 ’10 ’11 ’12
To Our Shareholders“ The benefits of thesechanges wereapparent from growthin card shoppingtransactions, whichwere 36.0% higheryear on year.Operating revenuesand operating incomealso showed healthygrowth, and RakutenSecurities’ investmenttrust balancesurpassed 300 billion. ”Internet FinanceSecurities’ investment trust balanceStrong growth in the card, bankingsurpassed 300 billion.and securities businesses in 2012 wasIn June 2012, Rakuten Edyindicative of a clear expansionarychanged its trading and service namestrend in this segment.from Bit Wallet to Rakuten Edy. SinceWe reorganized our card businessthen it has provided e-money servicesin 2011. The benefits of these changesas Rakuten Edy. Rakuten Edy haswere apparent from growth in cardbegun to install multi-e-moneyshopping transactions in 2012, whichterminals that can also be used towere 36.0% higher year on year ataccess e-money services provided by 1,802 billion. Both operatingt ransp ort at i on and d i st ri butionrevenues and operating income alsocompanies, in retail outlets, restaurantsshowed healthy growth.and other locations. It recordedThere was further expansion ofquarterly profits for the first time sincethe contribution made by the Superits establishment. In January 2013 itLoan business of the Rakuten Bank aslaunched a coupon site, Rakuten Edyan income growth driver. The balanceSmart Coupon, as a new online toof loans outstanding reached 181.8offline (O2O) service.billion, while total loan customersclimbed to 216,000.Airio Life Insurance, whichbecame a consolidated subsidiary inRakuten Securities recorded aOctober 2012, achieved healthysubstantial increase in domestic sharegrowth in the number of insurancetrading, and the number of newpolicies and annualized insuranceaccounts opened reached 10,000 perpremiums. In April 2013 it changed itsmonth. The number of accountscompany name to Rakuten Liferegistered for the Money BridgeInsurance, allowing it to use the powerservice, which links accounts withof the Rakuten brand to strengthen itsRakuten Bank accounts, reachedsales of insurance products.130,000. In February 2013, Rakuten6
Profits from InternetFinance businesssurged byInternet Finance82.8 % YoYRakuten Card Shoppingtransaction value exceeded 1,800 billionand revolving balance 160 billionRakuten Bank’s“Super Loan”receivables exceeded 181 billionand Super Loancustomers reachedLoanreceivables 181.8billionRakuten Edy(E-Money)introduced atTotal loancustomers216,308persons216,000350,000stores, commercialand travel facilitiesDec Mar Jun Sep Dec’11 ’12 ’12 ’12 ’12Rakuten aquiredAIRIO Life Insurancea mid-sized insurance company,and aims to transform its Internetpresence, renaming it RakutenLife Insurance7120,000usersfor Rakuten Securities“Money Bridge ,” a servicelinking accounts withRakuten Bank
To Our Shareholders“ Our overseasmarketplacee-commercetransaction valuegrew by 49% YoY dueto the success of theunique and highlyprofitable RakutenIchiba model. ”Overseas e-CommerceBusinessRakuten model to overseas marketsWe continued to develop the Rakutenthrough regional headquarters. OurGroup’s overseas activitiesaim is to provide consumers withdynamically in the year under review.opportunities to enjoy shopping byIn April 2012, we launched Rakuten.continually enhancing our productcom.br Shopping, a new Internetlineups, price competitiveness andshopping mall in Brazil. This wasdelivery services. We are alsofollowed in November by the launch ofintroducing the Rakuten Super PointsRakuten Online Shopping in Malaysiasystem aggressively, while using KPIas our first overseas greenfield venturemanagement to strengthen costestablished by Rakuten without thecontrol.help of a local partner.Specifically, we are extending theAnother focus will be theWe also continued to expand ourcreation of a global IT developmentactivities beyond the e-commerceorganization to enhance our ability tofield, and to develop a majorkeep pace with the global growth ofinvolvement in the digital contentmobile e-commerce.business. For example, in May weWe expanded our involvement inacquired an equity stake in Pinterest,overseas logistics with the acquisitiona major SNS site in the United States,of the French logistics company,while in June we acquired the SpanishAlpha Direct Services (ADS), invideo streaming company Wuaki.TVNovember 2012. ADS automationas a wholly owned subsidiary.technology, which spans all stagesThese initiatives were paralleled byf rom i nvent ory management tothe continuing process of applying thedelivery services, will be used toRakuten Ichiba business model thatprovide efficient fulfillment services tohas evolved in Japan to the companiesoverseas group companies.that we have acquired overseas. OurWe are also actively expandingoverseas marketplace e-commerceour overseas activities in the area oftransaction value grew by 49% YoY intravel. Rakuten Travel opened sales2012 to 45.7 billion, which confirmedoffices in Nanjing, Hangzhou andthe growth potential of the unique andTsingtao, China in February 2012, andhighly profitable Rakuten Ichiba modelin Manila in the Philippines and Hoin other countries. We aim to maintainChi Minh City, Vietnam in January andincome growth over the medium- toMalaysia in February 2013. In March,long-term future by focusing on theit established Rakuten Traveltransition to marketplace-basedSingapore Pte. Ltd. as its first locale-commerce in our overseassubsidiary in Southeast Asia.activities, and by capitalizing on ourcompetitive advantage.8
Sharing marketplace know-how (yokoten)to bring synergy for GMS growth Super Points University EXPO Super Points EXPO R-tool box Super PointsUniversityEXPOMarathonSuper Sale Super PointsUniversityEXPOMarathon RMSSuper PointsUniversityEXPO Super Points University EXPO Super Points UniversityInitiatives for Growth of Global E-commerceAttractive shopping destination via Happy Commerce Entertaining consumers Improving product lineup, price competitiveness and delivery quality RMS Super Points Super SaleQuarterly Marketplace GMSOverseasCompanies 23.4%Rakuten Model Integration through Regional HQs Branding, Storefront, R-mail (EDM), Rakuten Super PointsOffering fulfillment services with ADSHigher take rate Adoption of fixed fees at Buy.comLean and strong operation Cost control under KPI management Promoting Agile IT development and mobile commerceGlobal Marketplace9Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4’11 ’11 ’11 ’11 ’12 ’12 ’12 ’12Marketplace Rakuten Ichiba Taiwan Tarad Premium Mall Lekutian Buy.com marketplace PriceMinistermarketplace Rakuten Belanja Online RakutenDeutschland Play.com marketplace RakutenBrasil marketplace (from Q2/12).
To Our Shareholders“ The company plans todevelop a highlysophisticated e-bookbusiness model byadding unique socialfunctions, anexpanding range ofdevices and languagesand building win-winrelationships withleading local retailersand publishers. ”e-Bookswas distributing over 100,000 titlesIn January 2012, we acquired Koboin Japan.Inc., which is involved in the e-bookKobo’s e-book business hasreader and content business. At thecontinued to expand steadily in Japantime of the acquisition Kobo was activeand in overseas markets. The companyin eight countries, but the businessplans to develop a highly sophisticatedexpanded rapidly in fiscal 2012, and ae-book business model by addingfurther seven countries were added.unique social functions to its services,Kobo also released three new devices.and by providing support for anAccording to the IT industryexpanding range of devices andnewspaper Digitimes, Kobo gained alanguages. It will also step up its efforts20% share of global e-book readingto build win-win relationships withdevice shipments in 2012, after onlyleading local retailers and publishers.three years since its establishment inWe see Kobo as a trailblazer for the2009. Its content has expanded to 3.2overseas expansion of the Rakutenmillion titles in 68 languages, and thereGroup, since our entry into manyhas also been strong growth in themarkets is likely to begin with e-bookscompany’s content sales, which morerather than e-commerce.than doubled in fiscal 2012. TheThe global expansion of thecumulative number of users reachedRakuten Group is reflected in the12 million at the end of 2012, and theregrowth of our worldwide membership.was an increase of 4 million in betweenWe will continue to realize ourJuly and December 2012.commitment to the empowerment ofIn Japan, Kobo launched theindividuals and communities byKobo Touch in July 2012 and beganincreasing our efforts to bringto distribute content. The Kobo Gloincreased vitality to communities inwent on sale in November, followedJapan and in the overseas countriesby the Kobo Mini in December. Kobowhere we are active. Our aim is tocontinues to enhance its range ofcontribute to economic prosperity indevices and functions for readers,Japan and globally through theincluding the introduction of angrowth of the Rakuten Group in theAndroid app for Japanese users inmedium- to long-term future.December. By the end of 2012, Kobo10
Kobo has12 Million usersin 197 countries.Kobo’s growth ratesignificantly outpacesthe competition. Global content store with3.2 Mil. titles in 68 languages A family of award-winninge-reading devices and appsprovide universal access tocontent & industry leadingexperience A unique global model thathas created the world’slargest network of exclusiveretail partners providingaccess to the best customersGlobal e-readerMarket Share20%Kobo Quarterly Revenues(As of December 31, 2012)Q4 Q1 Q2 Q3 Q4’11 ’12 ’12 ’12 ’12Japanese market deployment of e-book businessE-book reader “Kobo Touch” sales andservice in Japan was started in July 2012.November 2012, a tie-up with DigitalPublishing Initiatives Japan Co., Ltd.November 2012 “Kobo Glo” andDecember “Kobo Mini” sales start.The number of Japanese-language titlesreached 100,000 in December 2012E-book Business11
A CSR Partnership for Sustained GrowthRenewed Vitality for Japan, and for the WorldRakuten’s founding philosophy is empowering people andthrough our core business activities. Every employee in everysociety through the Internet. This commitment has been aRakuten business in Japan and overseas shares a strongdriving force for the growth and evolution of our businessawareness of the values of the Rakuten Group and is helpingactivities. We define and clarify what we mean byto achieve sustainable growth for Rakuten and build a“Empowerment” with the expression, “Renewed Vitality forsustainable society by putting the principle of empowermentJapan, and for the World.” This remains our foremostto productive use.corporate value, a determination to contribute to societyRakuten brand philosophy a global standoutRakuten’s philosophy, expressed in the formula “Happy Merchants Happy Customers HappyCommerce,” is also reflected in assessments of its brand value.Rakuten was the only Japanese company selected as one of 50 global brands listed in “Grow: HowIdeals Power Growth and Profit at the World’s Greatest Companies” by leading international marketer JimStengel*. An extremely high value was placed on the Rakuten Ichiba brand because of its success infostering partnerships between businesses and consumers. Other brands listed in Stengel’s book includeAccenture, Apple, Coca-Cola, Google, Mercedes Benz, Starbucks and Visa.* Jim Stengel is an American businessman, author, professor, and public speaker. He served as the global marketing officer of Procter & Gamble from2001 to 2008. Stengel is currently the president and CEO of The Jim Stengel Company, where he advocates for ideals-driven businesses and brands.Empowering MerchantsPartnership Approachdirect contact with RakutenWe recognize that the birth and growth of the RakutenIchiba merchants. EachGroup would never have been possible without the strongyear, a theme linked tosupport of our business partners, who have workedcurrent trends is selectedalongside us and shared our belief in the future of thefor these events, which areInternet. Since the opening of Rakuten Ichiba in 1997, weused not only to sharehave worked to make the operation of shops as easy asRakuten strategies, but alsopossible by repeatedly introducing a variety ofto find solutions to merchants’ problems and fosterenhancements to our system and marketing approachescommunications among partners. Approximately 5,000and continually providing the best possible services tomerchants in Japan attended Rakuten Expo 2013 inmeet changing needs.January 2013.Rakuten Travel hosts the Rakuten Travel New YearConferencesConference for the same purposes. This event, whichRakuten holds Rakuten Expos annually in countries wheretargets hotels, inns and other accommodation facilities, iswe operate e-commerce business as opportunities forheld annually at seven venues.12
EC ConsultantsRakuten University and Rakuten Travel CollegeRakuten employs EC (e-commerce) consultants whose taskRakuten University wasis to help merchants with businesses operating on Rakutenopened in 2000 as a providerIchiba to increase their sales and solve problems affectingof EC service expertise fortheir activities. After first gaining a shared understanding ofRakuten Ichiba merchants.each merchant’s goals and vision, our consultants helpIn 2004, Rakuten Travelmerchants to achieve their sales targets by providing wide-established Rakuten Travelranging advice, including suggestions on ways to expandCollege for operators ofsales, marketing strategies for each type of goods andhotels, inns and other accommodation facilities. Bothsharing best practices and success stories.institutions help merchants to solve problems through theirown efforts by building databases of merchants’ successstories and problems, and by sharing that information in astructured way.Entertaining and Secure Shopping for ConsumersCustomer SatisfactionRakuten Bank“Shopping is Entertainment”—This core belief of theRakuten Bank has won the Asian Banker magazine’s “BestRakuten Group is behind our ongoing efforts to provide anDirect Bank” award three years in a row.entertaining and pleasant shopping experience throughinnovations that include the points program and customerreview system. These efforts are reflected in the highscores achieved by Rakuten Group companies in customerKobo Inc.satisfaction surveys in Japan and overseas.Wired Magazine included the Kobo Touch in its Editor’sNikkei BP—Brand JapanPick for 2012 as the best e-book reader. PC World gave itRakuten Ichiba’s rating as a consumer brand has risenfive stars out of a possible six and described it as “a realsteadily, reaching tenth place in 2012. Our points programeye-opener” and “a lovely piece of hardware.” The Kobohas also been rated as the most user-friendly loyaltyGlo was selected by Computer Bild as its “Test Winner.”program in Japan.Rakuten CardRakuten Card h
Rakuten, Inc. Annual Report 2012 Rakuten isUniqu e Annual Report Fiscal Year Ended December 31, 2012 Rakuten, Inc. Annual Report . Contact Sumitomo Mitsui Trust Bank, Limited Stock Transfer Agency Department 2-8-4 Izumi, Suginami-ku, Tokyo 168-0063, Japan M aj o rS h eld s (As of December 31, 2012) Name Number of shares Percentage
