“Empowerment”— Empower Japan. Empower the World.

Value Creation for Sustainable Growth
Our Vision
“Empowerment”— Empower Japan. Empower the World.
http://global.rakuten.com/corp/sustainability/
Corporate Philosophy
“Empowerment” of Individuals and Society through the Internet
From the day Rakuten was founded, we have dedicated ourselves to empowering people and
society through the Internet. This principle has driven the growth and development of our business
and is reflected in the mission “Empower Japan. Empower the world.” A commitment to contributing
to society through our business activities is our most important value. To achieve sustained growth
for Rakuten and a sustainable society, each Rakuten Group employee in Japan and overseas shares
common values and puts the corporate philosophy into practice with a powerful sense of mission.
Our Value Creation Model
“Rakuten Ecosystem” — a Globally Pioneering Business Model
The Rakuten Ecosystem, our unique business model, consists of three core businesses: Internet
Services, Internet Finance, and Digital Content. It is a user-friendly business model based on the
concept “Single brand, single membership,” under which Rakuten members are issued a single global
Rakuten ID that provides access to a wide variety of services offered by the Rakuten Group. In
addition, by promoting member migration within the Ecosystem through the Rakuten Super Points
rewards program, we seek to maximize profit per member and simultaneously aim to maximize
corporate value by creating cross-business synergies.
Rakuten Ecosystem
Finance
Rakuten Membership
Credit Card
Banking
Securities
Life Insurance
etc.
Brand Strategy
&
Membership
Marketplace
Travel
etc.
E-commerce
Digital
Content
1
Rakuten
Membership
E-Book
Video Streaming
TV Programs
etc.
3
Redeem Rakuten
Super Points
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Use Rakuten
Service
2
Earn Rakuten
Super Points
Our Brand Value and Customer Satisfaction
Maximization of Lifetime Value per Member
Through the Rakuten Ecosystem, we utilize a member database, a key business asset, to provide
services that are fun and convenient for Rakuten members and pursue synergies among our
businesses, including expansion of gross merchandise sales (transaction volume) and maximization
of lifetime value per member. In addition, under the concept of “Shopping is Entertainment,” we
constantly develop new services, such as our rewards program and customer review system, that
make shopping a pleasant and entertaining experience for members. The results of these efforts are
reflected in the high scores achieved by Rakuten Group companies such as Rakuten Card in customer
satisfaction surveys and brand rankings in Japan.
Maintaining Top Web Brand Position in Japan
Rank in 2014
Rank in 2013
Rank in 2012
Site Name
1
1
1
Rakuten Ichiba
2
2
2
Yahoo! Japan
3
3
4
Amazon.co.jp
4
5
3
Google
Nikkei BP Consulting, Inc. “Web Brand Survey 2014 Autumn-Winter” December 2014, 2013 and 2012.
Our Membership
Results of Value Creation
Accompanying enhancement of brand value, the number of Rakuten members is increasing
dramatically, with membership (logged-in) in Japan exceeding 70.3 million at the end of 2014. The
number of unique buyers, members who have purchased multiple services during a quarter,
exceeded 15.8 million in the fourth quarter of 2014. In addition, the cross-use ratio, the percentage of
users of services for which Rakuten Super Points are awarded and who also use other services,
reached 59.2%. These figures clearly indicate the impact of the Rakuten Ecosystem business model.
Number of Unique Buyers*
+2.1%
(Million)
YoY
20
Cross-use Ratio*
59.2%
(%)
70
60
15
50
40
10
30
20
5
10
0
Q4/12
Q4/13
Q4/14
*Unique Buyers: Number of buyers sorted by e-mail address with purchasing records
during the listed 3-month period.
0
Q4/12
Q4/13
Q4/14
*Purchasing ratio of Rakuten members who have utilized two or more Rakuten
services during the past 12 months of the listed month. Applicable services are
limited to those which can earn Rakuten Super Points.
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Value Creation for Sustainable Growth
Investments for Growth
Various Support for Partners
We consider our business partners, who have worked alongside us and shared in our success, to be
essential to the Rakuten Group’s growth. Since the opening of Rakuten Ichiba in 1997, we have
provided various forms of support for merchants. We provide consulting services for Rakuten Ichiba
merchants through e-commerce consultants, whose task is to help our business partners increase
their sales and solve problems affecting their activities. In addition, we opened Rakuten University in
2000 as a provider of e-commerce service expertise for merchants. Furthermore, we hold Rakuten
Conferences and Rakuten Expos twice a year at six locations across Japan and once a year at 13
locations outside Japan. We utilize these events as forums for sharing our business strategy and
close communication with merchants.
Rakuten Ichiba Number of Merchants
Rakuten Ichiba GMS per Merchant
(Millions of yen)
41,442
44,000
50
42,000
40
30
40,000
20
38,000
36,000
¥48.1
million
60
10
Q4/12
Q4/13
Q4/14
0
Q4/12
Q4/13
Q4/14
Rakuten Ichiba—a Safe, Secure Shopping Environment
Rakuten implements a variety of measures at every stage to maintain a safe and secure shopping
mall environment.
Customer Support
Goods ordered in Rakuten Ichiba are indemnified under the Rakuten Safe Shopping Service. If a Rakuten member (free
registration) experiences problems with goods after payment, such as non-delivery or damage, the amount paid will be
reimbursed up to a maximum of ¥300,000.
Merchants
Settlement Methods
Delivery of Goods
All merchants wishing to open stores in
Rakuten Ichiba undergo a rigorous
screening process. The goods offered
must comply not only with laws and
regulations, but also with our
guidelines, and daily checks are carried
out to ensure that non-compliant items
are not on sale. There is also a contact
point for customers to report
inappropriate goods.
Rakuten offers a variety of settlement
methods and has created systems to
provide enhanced security. The credit
card settlement process used in Rakuten
Ichiba complies with the PCIDSS*, while
bank transfers are paid into special
merchant accounts in the Rakuten
Ichiba Branch of the Rakuten Bank to
prevent fraudulent transactions.
We have enhanced registration
systems for estimated shipping dates
and other shipping-related information
for goods ordered in Rakuten Ichiba.
Estimated shipping times are displayed
on product pages and other locations,
and customers can check the delivery
status of their products from their
purchase records.
*The Payment Card Industry Data Security Standards (PCIDSS) were jointly established by five international credit card brands to protect information concerning credit card
accounts and transaction.
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Support and Education for Employees
Rakuten provides a variety of information-sharing
opportunities to enable all Rakuten Group employees to work
toward the same goal as members of one big team. Forums
for information sharing include morning meetings held at 8
a.m. every Tuesday streamed live to over 50 offices in Japan
Englishnization
The average TOEIC (English test) score
at Rakuten
over
800 points
(April 2015)
and overseas so that all employees are able to attend.
In addition, the Englishnization Project launched in 2010
to make English the official language throughout the
Rakuten organization has steadily produced results, and
more than 90% of Japanese employees have attained their
About 30% of new staff recruits at Tokyo HQ
in 2012-13 have been non-Japanese
80%
target TOEIC scores. This initiative has contributed to the recruitment of personnel from overseas, and
in fiscal 2014 approximately 80% of newly recruited engineers in Japan were foreign nationals. This
has yielded tremendous benefits, including the recruitment of highly talented people and active
communication with overseas subsidiaries.
CSR Topics
Rakuten Mobile Library:
From Disaster Recovery to Providing Reading
Environments to Children around the World
Rakuten’s Forest:
Reviving Forests and Protecting
Biological Diversity
In 2012, Rakuten Mobile Library was launched to
Deforestation is a
provide a reading environment for children in areas
major challenge
devastated by the Great East-Japan Earthquake. By
among various
2014, we had delivered books and Kobo e-book readers
countries. In Japan,
to children and families, a total of 13,197 people.
excessive plantations
To expand our initiative globally, we held Rakuten
led to a breakdown
Mobile Library at Paris in 2014. Children and family in
in ecological balance
France spent fun experience. After the event, total 482
especially for the golden eagle, mascot of our
titles were donated to Secours populaire, the French
baseball team, Tohoku Rakuten Golden Eagles. To
NPO engaged with social issues including that of
protect eagles, Rakuten started initiatives within six
children without families.
prefectures in Japan. We also started to contribute
deforestation problems in worldwide, such
as in Indonesia, where deforestation has been
especially rampant.
Rakuten’s Forest is an initiative sustained by
donations from Rakuten merchants, customers and
stakeholders. Specific activities are conducted in
collaboration with local governments and ministry
officials in order to tackle local challenges.
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Board of Directors, Managing Executive Officers and Company Auditors
(As of July 1, 2015)
Toru Shimada
Yasufumi Hirai
Masayuki Hosaka
Executive Vice President
and Representative Director
Executive Vice President,
Representative Director and CIO
Executive Vice President
and Representative Director
Yoshihisa Yamada
Masatada Kobayashi
Akio Sugihara
Executive Vice President,
Representative Director and CFO
Managing Executive
Officer and Director
Managing Executive Officer
and Director
Kazunori Takeda
Kentaro Hyakuno
Hiroaki Yasutake
Takahito Aiki
Managing Executive Officer
and Director
Managing Executive
Officer, Director and CSO
Managing Executive Officer
and Director
Managing Executive Officer
Koji Ando
Yuji Kusunoki
Masato Takahashi
Kenji Hirose
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Charles B. Baxter
Yoshiaki Senoo
Takeo Hirata
Katsuyuki Yamaguchi
Director
Company Auditor *1
Company Auditor *1
Company Auditor *1
Hiroshi Mikitani
Chairman, President and CEO
Hiroshi Takahashi
Substitute Company Auditor *2
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*1:Outside auditor stipulated under Corporate Law of Japan
*2:Substitute company auditor stipulated under Corporate Law of Japan
Outside Directors
(As of March 27, 2015)
Year Appointed
Positions Held
Area of Expertise
1999
Attorney and Senior
Legal: Mr. Kusano has drawn on his wide-
Partner of Nishimura &
ranging knowledge and experience as a
Asahi
lawyer, as well as on his expertise in corporate
law, to provide advice and opinions on
Rakuten’s operations. He has served as a
Koichi Kusano
director for 15 years and four months.
Director *1
2010
Former CEO and
Entertainment and Technology: Mr. Kutaragi
Honorary Chairman of
has provided Rakuten with management-
Sony Computer
related suggestions and insights based on his
Entertainment Inc.
specialized knowledge of the entertainment
industry and technology, as well as his wide-
Ken Kutaragi
ranging corporate management experience.
Director *1,*2
He has served as a director for five years.
2008
Former Representative
Management Consulting: Mr. Fukino has
Director and Chairman
used his expertise as a management
of Dell Japan Inc.
consultant and his extensive corporate
management experience to contribute
management-related advice and ideas. He
Hiroshi Fukino
has been a director for the last seven years.
Director *1,*2
2012
Dean of Faculty of
Internet Technology: Mr. Murai has given
Environment and
Rakuten management-related
Information Studies of
recommendations based on his knowledge
Keio University
and experience as an academic expert on
Internet technology. He has served as a
Jun Murai
director for three years.
Director *1,*2
2015
Senior Associate Dean
Business Strategy: Ms. Moon has provided
of Strategy and
advice and opinions on the business
Innovation and Donald
operations of Rakuten from her viewpoint as
K. David Professor of
an academic expert on business
Harvard Business School
administration. She is a newly appointed
Youngme Moon
Director *1
director.
*1:Outside director stipulated under Corporate Law of Japan
*2:Independent director specified by the regulations of Tokyo Stock Echange, Inc.
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