Rakuten Group Inc S/Adr

Thank you for joining Rakuten Group's FY2026 first quarter financial result briefing today despite your busy schedule. The earnings summary was disclosed at 3.30 p.m. just a moment ago. Please visit the investor relations section on Rakuten Group's corporate website to view it. Should the audio or video cut out, you may switch to an alternative streaming server using the button displayed below the video player. We will now begin the presentation from Miki Tani. So everyone, thank you very much for joining our briefing today despite your busy schedule. And I would like to cover FY2026 first quarter financial results, followed by CFO Kaga to explain financial situation, followed by AI by Tinsa chief AI officer. So this is agenda for today, as shown on the slide. And first of all, overall summary. And then next today, we would like you to know about the synergy ecosystem of Rakuten group in detail. After that, segment results will be explained.

Now let me walk you through the summary. As for the revenue, for the first quarter, we were able to achieve the record high, 643.6 billion yen, versus the previous year, it was 14.4% increase, so it was a very steady growth. As for EBITDA, again, it was 108.8 billion yen. So MNO business, it was the very first time in the first quarter that we achieved more over 100 billion yen after we entered into MNO business. for the third consecutive term. And as for non-GAAP operating income, since the full-fledged entry into the M&O business, we achieved a profit in the first quarter, 36.6 billion yen, versus the previous year, it was up by 36.3 billion yen.

So, from here and after, I would like to talk about the Rakuten ecosystem in a qualitative manner. I would like to investors have deep understanding on our ecosystem. So, in Japan, ecosystem, I think the ecosystem is created by Rakuten group. So, basically, the conglomerate discount, like the one plus one due to various reasons is less than two. However, in our case, it's not a simple conglomerate. We do have a huge synergy in our group services. That's why one plus one is greater than two. So it will be expanding. In particular, recently, because of AI or agentic AI advance. So what would happen with that? So in various stages, Rakuten ecosystem, so-called, we do have growth and the defense and office and defense, we are able to achieve both sides. And the foundation for this is one single brand name. So the common ID we do have and common point program, With that, we do have 70 services connected. So we haven't emphasized this, but the monthly, 45.88 million users are using some of our services. So we do not call them the viewer. Actually, they are transacting our services. Other than this, so from the corporate governance perspective, so we do have a thorough corporate culture and including Rakuten Mobile, they are making really hard efforts. So the corporate culture, we do have more than 70 services and in all of the group companies, we do have a common culture among the group companies and also the users very loyal to our services. So how to increase the number of users and how can we increase the number of cross-use? And then how to improve the LTV or the lifetime value. Lifetime value of the customer. How can we improve this? And then among that, so looking at the overall CAC or customer acquisition cost. How can we lower this CAC? And then how can we bring that to the higher LTV and acquire new users to our ecosystem and how to upsell them to other services. That is a big point of this ecosystem. And then over the past five years, from 2020 to 2025, so-called internet services such as EC or the Travel, and from those services, new users joined. That is about 19.7 million. And new customers from FinTech, Rakuten, PointCard, Credit Card, and the bank and securities, and the customers moved from there, new users, that is 16.1 million. And through the mobile, 2.9 million.