Rakuten Group,Inc. — Call Transcript 2026

Let me walk you through the summary. For the revenue, for the first quarter, we were able to achieve the record high JPY 643.6 billion versus the previous year. It was 14.4% increase, it was a very steady growth. For EBITDA, again, it was JPY 108.8 billion. MNO business, it was the very first time in the first quarter that we achieved over JPY 100 billion after we entered into MNO business for the third consecutive term. For non-GAAP operating income, since the full-fledged entry into the MNO business, we achieved a profit in the first quarter, JPY 36.6 billion versus the previous year. It was up by JPY 36.3 billion. From here and after, I would like to talk about the Rakuten ecosystem in a qualitative manner. I would like the investors to have deep understanding on our ecosystem. In Japan, ecosystem, I think the ecosystem is created by Rakuten Group. Basically, the conglomerate discount, like the 1 + 1 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 1 + 1 is greater than two. It will be expanding. In particular, recently, because of AI or agentic AI advance, what would happen with that? In various stages, Rakuten ecosystem, so-called we do have growth and the defense and offense and defense, we are able to achieve both sides. And the foundation for this is one single brand name. The common ID we do have and common points. With that, we do have 70 services connected. We haven't emphasized this, but the monthly 45.88 million users are using some of our services. We do not call them the viewer. Actually, they are transacting our services. Other than this, from the corporate governance perspective, we do have a thorough corporate culture. Including Rakuten Mobile, they are making really hard efforts. The corporate culture, we do have more than 70 services. In all of the group companies, we do have a common culture among the group companies. Also the users, very loyal to our services. How to increase the number of users and how can we increase the number of cross use? How to improve the LTV or the lifetime value of the customer, how can we improve this? Among that, looking at the overall CAC or customer acquisition cost, how can we lower this CAC? 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. Over the past five years from 2020-2025, so-called internet services such as EC or the travel. From those services, new users join. That is about 19.7 million. New customers from fintech, Rakuten Point Card, credit card, Bank and Securities. The customers moved from there, new users, that is 16.1 million. Through the mobile, 2.9 million. 38.71 million people who came into the ecosystem are using four point six times the number of services. Each of the services are organically connected. That's what is represented here. This is a very surprising, shocking number. The user of one segment and users of two segments and users of three segments, when we compare them, users who are using two segments are using 5.4x revenue. They are generating 5.4x the revenue of Rakuten Group. Users of three segments are generating 13.5x the revenue for us. The customers or membership nurturing is now working. Two, three, four services, when users use all these services, what happens is that, for example, the users who are using one service, the churn rate of the user of one service is baselined as 100. Users of four services only have one churn rate. The more services users use Rakuten services, the higher the loyalty of the users becomes. As a result, looking at our strategy holistically, the relatively low CAC services are used to acquire customers. Among these users, we upsell them to high LTV services, including mobile and financial services. That's our strategy. By the way, mobile and fintech, the users of these services, about 85% of new users of these segments came from the Rakuten channels, Rakuten ecosystem. There are many functions that we can utilize, and that is currently working very well. AI is advancing, and what will happen to all these services? That is the question. We have rich data on our hand. Not only online data, we have offline data as well. Globally speaking, we have really valuable and rich data. Through the use of the data, we can provide many services. We can also have more customers come to our ecosystem through the use of AI. We will talk about this later again, but the profitability is going up more and more, which means that we have been decreasing the operating costs through the use of AI. We are also promoting cross-use using AI, and we can accelerate the customer acquisition using AI, and that's what we have been doing. On the offense and on the defense, AI can accelerate our strategy, and that's what's happening. Okay, now move on to the segment results by each segment. Shopping, travel, the internet service segment. The revenue was JPY 317.6 billion. Not only from Ichiba and Travel, Kobo and Viber content businesses are performing pretty well to grow. Non-GAAP OI, JPY 21.2 billion comparing to the year before, +65.6%. Each KPI. Domestic EC GMS, that is JPY 1.5 trillion, which is 4.8% YoY growth. Travel, +16.4% increase YoY. Investment business IRR and is quite performing well. International BU revenue, $459 million, about 7% growth this time. What we have to mention is AI-led advertisement business has been performing pretty well. This JPY 61.9 billion in Q1 and 13% growth YoY. Let me look into each business in detail. First of all, domestic EC. As mentioned before, GMS 4.8% YoY growth and revenue +4.0% and OI +29.2% growth. It's about the JPY 31 billion we achieved. The next is travel business. It's really growing today. Travel business, the GTV on YoY basis +16.4%, and particularly inbound demand, which is the 69.7% growth. Even for the domestic travel, there is a growth of +8.1%. We have added direct AI capability here, which will help the searching hotel much easier and also the real concierge. Just like as you if you are talking to the travel agency to decide where you want to go and book your hotel, that is possible with this AI. Next is the growth investment business. Trying to lower the cost or increase the revenue, and that is what we are doing really hard. About the JPY 2.7 billion profitability improve was made non-GAAP OI. What we have to stop needs to be stopped. For example, NBA Rakuten, this is a basketball streaming service we have terminated. For the Rakuten Mart in the Western area, we have terminated the service there. That will improve the remaining growth invest base businesses. It's still in the middle way. The next is international BU. Reward, YoY basis, there is a big jump from the YoY basis and also the streaming service, Viki, revenue has been steadily increasing. Unfortunately, it was not making a huge loss, but it was really difficult to turn into the profit, which is the Rakuten France marketplace, and that will be sold or terminated by the end of 2026, we have decided. With that non-GAAP OI for this Q1 FY 2026, $7.1 million. This is the shopping. We do have a higher season in Q4 for revenue. The next is ad business revenue, which is growing largely. The Q1 revenue was JPY 61.9 billion. And so the, uh, 13% increase YoY growth, it's been accelerated. Using the AI for various advertisement services. For example, Rakuten Ichiba's for advertisement. Once you decide the budget, automatically we will replace the optimized advertisement with that. GMS at Ichiba will be growing. Not only that, but also for the merchant revenue had improved. The taking the power of AI and taking advantage of Rakuten data has a great potential or possibility. Rakuten advertisement and the common challenges in advertisement businesses, what are the difference between the two? Our targeting for the AI use the actual data or actual purchase data. On the other hand, other company, they use behavioral data, for example, search and the view. We do have a Rakuten ID, we can have accurate analysis of the results. On the other hand, the common challenges. It is difficult to use the cookie. There is a restriction, so the accurate tracking or measurement of the result is quite difficult. The coverage, as mentioned before, well, we do have so many users using various services in our group, so data is one thing and also the advertisement placement, web page or application. We do have rich the asset of that. The AI would be growing our advertisement business in Rakuten. Next is the Fintech segment. Revenue was up 73.1% to JPY 375.3 billion. All the services are growing steadily, especially Rakuten Bank and Rakuten Card. They have increased revenue steadily and also cost is controlled. The revenue, the non-GAAP operating income was JPY 58.5 billion, up 33.8% year-on-year. These are the major KPIs. Rakuten Card shopping GTV was up by 8.5% to JPY 6.8 trillion, and the number of Rakuten Bank accounts was up 7.3% to 18.07 million, almost 20 million. Rakuten Bank deposit balance is JPY 12.9 trillion, up by 12.9%. There is severe competition, but it was JPY 12.9 trillion. It's growing. Rakuten Securities general accounts, it surpassed 14 million in April. NISA accounts, as a leading company, we are driving NISA, and there is 7.53 million accounts. For all generations, young people are opening up NISA accounts at Rakuten Securities as well. Rakuten Securities deposited assets JPY 50.3 trillion, up by about 40% YoY. On Rakuten Card first. The so-called interest rate has been increasing, so how can we grow this business was the question. The number of members and GTV and assets and cost control, all of them are working successfully. An 8.5% increase in GTV and revenue was up by 18.4% and non-GAAP OI up by 15.7% to JPY 16.8 billion. On payment. It is also growing. The revenue was up 12% to JPY 27.3 billion, and non-GAAP OI was JPY 2.1 trillion, up 14.4% YoY. On Rakuten Bank. The bank side already made an announcement that the ordinary income was up 38.4% to JPY 255.5 billion. Ordinary profit was up 44.1% to JPY 103 billion. The capital adequacy ratio is above 10% and ROE 21.7%. All in all, the number of bank accounts and number of main accounts, total deposit balance, they are all growing across the board. With the utilization of AI, the expense ratio has been going down. Rakuten Securities. Other securities are also facing the same situation, but the securities market is quite active. The number of general accounts has also surpassed 14 million, and operating revenue JPY 50.3 billion, up 43.7% year-on-year. Operating income versus the previous year up by 92.5%, almost doubled to JPY 14.6 billion. Insurance. It's also trending favorably. The revenue itself, we have high margin products that we are focusing on. Looking at the revenue, the absolute number may have gone down, but the OI was JPY 1.7 billion. It's been trending steadily. Especially Rakuten Auto Insurance, that's where we focus on, and the sales has been expanding. As for life insurance, we have face-to-face and online and group insurance. All channels are doing well. On the fintech business, I'd like to touch upon reorganization. As of now, as far as we can disclose, I'd like to talk about this topic. First of all, the financial synergy is quite significant. The Rakuten Card, Rakuten Securities. In Rakuten Bank, some of them are undertaken at Rakuten Bank, but on top of that, we also have external interest-bearing debt. A rather high interest rate is there. With the restructuring in the fintech group, we can complete the cycle ourselves. The interest burden can be controlled, and also the asset management can be done in the group in by ourselves. In terms of the cross-use, we can accelerate that. Especially, we can consolidate and integrate applications, and we can do that more easily with this reorganization to achieve Super ARPU. We can maximize corporate customer base. The customers may have the corporate account at Rakuten Bank, but they may not have the personal account or vice versa. Corporate customer base can be commonized to expand the business scale. More than anything, including Rakuten Group, we can utilize AI further. Even more than before, various financial services can be offered in a seamless manner. The identification of the person is the key, but eKYC can be used to automatically verify the identification, and then we can centralize the data by so doing. Synergy will be quite large. Finally. Last from myself, talking about the mobile segment, it has been progressing smoothly in both the revenue and OI. The revenue, 18.5% YoY increase, which is JPY 131.2 billion. Non-GAAP OI, JPY 13.3 billion YoY improvement and JPY -38 billion. EBITDA, JPY 1 billion. The pre-marketing cash flow, the so-called new customers or new stores, excluding cost related to that, it's already reached JPY 28.7 billion. Through [EBITDA basis, it's beyond JPY 100 billion. The premium PMCF, growing 85.7%. Major KPI, Rakuten Mobile, the YoY basis, 10.36 million under subscriber, increasing 1.74 million. The adjusted churn rate has been improving. ARPU, mainly around the store, it's getting increasing. On the other hand, mainly for the communication software, which is Rakuten Symphony, the number of customers are increasing and number of partners are increasing, this has been progressing smoothly. Let me go into detail about Rakuten Mobile. The revenue is growing by 23.9% YoY, recorded JPY 108 billion. Non-GAAP OI, improvement of JPY 12.7 billion. Particularly, we are still at the phase of increasing the customer bases, we are still in the growing phase. Excluding those growth investment, already achieved this, JPY 287 million, JPY 7 billion. EBITDA, excluding the property tax, and it's JPY 6.6 billion. The net increase in the first quarter of last year was 324,000 lines. In this first quarter, it was 373,000. It was up by 15%. As for churn rate, on a quarter-to-quarter basis, it was down from 1.99%-1.76%. In April, it was 1.45%. It was the improvement of 34 basis points. The one thing I can say is that there are people who are going around different areas to earn points. They are leaving the carriers quickly. Those users with more than five lines are now charged with our fee, and we are also strengthening the role to verify the identification. That succeeded, and we were able to curb the short-term users as a result. That is a key point. Having said that, the user survey showed that the 76.4% of the Rakuten users are saying that they intend to continue using our service. Rakuten Mobile is the most considered mobile service for switching with 23.7%. We are ranked at the number one. ARPU is also about to go up. The base station construction, it is also accelerated, so the network quality will be improved as a result even further. The shortage of labor has given us a difficulty, but other companies, and the mobile industry may not have used this process, but we are going to take up the upstream process internally to accelerate the base station construction. Rakuten Symphony, the $131.4 billion, that was the number. OSS cloud, including that, everything is trending well. That is all from my end. Now, I would like to turn it over to Kaga for finance, and Ting Cai is going to talk about the AI section. This is Kaga. Let me explain the financial matters. This is the first quarter consolidated financial results summary. Non-GAAP operating income came in at a strong JPY 36.3 billion. After deducting amortization of intangible asset share-based compensation and one-off items, the IFRS operating income at JPY 30.4 billion, we made a very strong start toward the goal of significantly increasing profit in FY 2026. For this first quarter and the before tax, the profit before tax is making a profit. This is a big turning point, that is our understanding. For this year, continuously we will revisit our business portfolio, there is a possibility of revisiting visit to business portfolio, but we are lowering the amount of risk on the balance sheet. That is how we are thinking of. This is about the financial strategies. There is no change to our financial strategy as previously communicated. We remain committed to continuing strategic investment in the mobile business while maintaining financial discipline and pursuing further credit improvement. We will maintain this policy. The most important thing, which is one of the financial KPI for the net debt to EBITDA of our non-fintech businesses. One, we are targeting a reduction to below 5x by 2027. We are also maintaining our target for consolidated equity ratio of 10% over the long term and 5% over the medium term. Regarding the ratio of net interest-bearing debt to EBITDA in non-fintech businesses, the ratio, due to both improved EBITDA and an increase in the valuation of listed securities, the ratio has declined to 5.6x as of the end of March. For the target at the end of fiscal year 2026, we have set a slightly conservative goal of around 6x. Our commitment to improving profitability and reducing interest-bearing debt remains unchanged. We are also making steady progress on funding for bond redemptions. For this year, senior bond redemption are planned to be covered by cash on hand. Last month, April, we had the first call date in April. The U.S. dollar denominated perpetual subordinate bonds and have been fully redeemed using proceeds from the domestic perpetual subordinate bonds issued in October of last year. For the perspective of proactive maturity management, we have already began planning for redemption from 2027 onwards in addition to maximize free cash flow of the group. Where debt financing is required, we will carefully monitor market condition, including foreign exchange and interest rate trends, and evaluate the optional funding options from the full range of available options. We recognize that our series of proactive initiative toward financial soundness have been continuously evaluated positively by the market. The trend in the spread of our corporate bonds issued in previous years and five year CDS spreads show relative improvements even when compared to the market indices. Going forward, we will continue to work on further strengthening our financial structure and maintaining disciplined financial management to sustain and enhance this evaluation. This is all about the financial section. Now we would like to move on to the AI initiative and see Chief AI & Data Officer Ting Cai would be explaining. Thank you, Kaga-san. This is Ting. I'm the Chief AI and Data Officer of Rakuten Group. Today, I'm very excited to share with you our AI strategy, how we set Rakuten apart, and highlight our progress in rolling out AI agent across Rakuten ecosystem. We continue to pursue Rakuten AI vision to augment human creativity with the power of AI. We are leveraging our differentiated advantage, our ubiquitous channel, reaching 10 million online and offline touchpoints, and our connected ecosystem with 46 million online monthly active user in Japan. That connected ecosystem make it much easier for user to discover new services, reducing Customer Acquisition Cost. With our diverse portfolio of businesses, we have built one of the most comprehensive ecosystem that can meet almost every user need in both daily and professional life. Every interaction in the ecosystem help us to accumulate unique data. Combined with AI, now we can derive more insights and provide higher quality services to our users, further nurture our relationship with our merchants, and build the growth flywheel through our Rakuten ecosystem. Why do customers choose Rakuten ecosystem? Because the trust in our brand and the value and joy we provide to our users through Rakuten points, and the relationship with our merchants and partners. Now with AI, we can compound our ecosystem advantage. For every touch point we have, we can engage better with our users, whether it is a search, recommendation, advertising, customer service, AI can better understand the user intent, enhance user experience through personalization. This creates a sticky experience that increases customer satisfaction and entices them to come back to us more often. Second, expand. AI can expand our services in multiple ways. It can help us to capture user intent earlier, turning vague ideas into concrete actions. It can help user to understand our points and campaigns more, because AI can guide them throughout the process. For example, in a shopping marathon, user can earn 10x points if they shop from 10 different shops in Ichiba. Which shop to choose from? Now AI can make recommendations. With AI, we can also interact with users in new ways, through voice, through images, and through conversations. Now more users can interact with our services in the way they prefer. Lastly, differentiate. AI is increasingly better understanding what user want to achieve, break it down into tasks, planning, executing, iterating to achieve goals. When it comes to complete transactions, this is where Rakuten presents a unique advantage. In a nutshell, AI enables us to engage user with more personalized services, expand usage scenario, and differentiate our services through transaction, through our memory, and connected services. With that, we can continue to build a flywheel to grow our competitive advantage. The beauty of Rakuten ecosystem is that it's all centered around one Rakuten ID. With Rakuten ID, we have accumulated precious data assets about our members, including historical context, user preferences, that enables us to provide tailored services to our users. Integrated identity, context, and easy payment and delivery remains a unique advantage of Rakuten ecosystem that external AI agent have difficulty replicating. In addition, our AI agent can activate the depths of knowledge we have in each domain. By delivering specialized services, it will be difficult for other general purpose agent to match. In the AI era, data alone is not enough amount itself. It is the value we create from the data that help us to build a more trusting relationship with our merchant and users. It is the additional economic and emotional value we can deliver through the Rakuten ecosystem that keeps our user coming back. As consumer increasingly shift from a traditional search engine to AI-powered information discovery services, our agentic AI strategy presents a significant opportunity for Rakuten to expand our services and capture user intent. We are focusing on two things. One is building specialized agent with deep expertise in each domain. This enables user to skip traditional web search and come directly to Rakuten for discovery, consideration, and all the way to purchase decisions. Second, we are building a super agent. User can just share a vague idea, and super agent can figure out the intent through its memory or having a dialogue with the users. It can plan and execute then and finally helping user to complete task across multiple ecosystem services. Going forward, we will enable our agent to complete even more task and expand our opportunity establishing Rakuten AI as the go-to destination for general inquiries. From architecture point of view, we are investing deeply in each layers, from infrastructure, data center, GPU optimization, model system, and all the way to application and agent. Specifically our AI agent, we are focusing on a strategy where build the best but also partner with the best. We have been collaborating with the best AI company in the world, both startups and large company, such as Anthropic and OpenAI. We started collaborating with them early on. For example, we worked with OpenAI when they only had 400 people, and we worked with Anthropic before Claude Code became a phenomenon. At the same time, we want to understand the technology fundamentals so we can build from the ground up, creating our own embedding for commerce, tokenizer for Japanese. We also innovate on top of our open source model, train with our unique data set, and optimize for domain-specific task. Today, we have a portfolio of models from mini models to super model with almost 700 billion parameters. Moving forward, we are focusing on building domain and task-specific models that are very cost efficient for our businesses and delivering better margin and more value for our customers. Since our grand launch of Rakuten AI, our agentic platform at Rakuten Optimism last year, we have continued our execution momentum. Today, we have 11 AI agents available, particularly in our last earnings presentation, we talk about Rakuten Ichiba. Today, I want to briefly touch on Rakuten Travel. As Miki mentioned earlier, Rakuten Travel increased the gross transaction volume 16.4%, and I have personally used it every day during the Golden Week, while I was biking from Onomichi to Imabari. Every night, I booked on Rakuten Travel. It's a delightful experience for me to discover local gem easily and quickly on the go. We are moving quickly to build, test, and deploy AI agent across the ecosystem. AI agent are already live across 11 services, our plan doesn't stop here. We hope to enhance all of our services through AI agent. Our ultimate goal is to augment human creativity with the power of AI. That concludes today's presentation. Thank you. This concluded the financial result presentation. Thank you very much.

Speaker 2: Let me walk you through the summary. For the revenue, for the first quarter, we were able to achieve the record high JPY 643.6 billion versus the previous year. It was 14.4% increase, it was a very steady growth. For EBITDA, again, it was JPY 108.8 billion. MNO business, it was the very first time in the first quarter that we achieved over JPY 100 billion after we entered into MNO business for the third consecutive term. For non-GAAP operating income, since the full-fledged entry into the MNO business, we achieved a profit in the first quarter, JPY 36.6 billion versus the previous year. It was up by JPY 36.3 billion. Let me walk you through the summary. let me walk you through the summary For the revenue, for the first quarter, we were able to achieve the record high JPY 643.6 billion versus the previous year. for the revenue for the first quarter we were able to achieve the record high jpy 643.6 billion versus the previous year It was 14.4% increase, it was a very steady growth. it was 14.4% increase it was a very steady growth For EBITDA, again, it was JPY 108.8 billion. for ebitda again it was jpy 108.8 billion MNO business, it was the very first time in the first quarter that we achieved over JPY 100 billion after we entered into MNO business for the third consecutive term. mno business it was the very first time in the first quarter that we achieved over jpy 100 billion after we entered into mno business for the third consecutive term For non-GAAP operating income, since the full-fledged entry into the MNO business, we achieved a profit in the first quarter, JPY 36.6 billion versus the previous year. for non-gaap operating income since the full-fledged entry into the mno business we achieved a profit in the first quarter, jpy 36.6 billion versus the previous year It was up by JPY 36.3 billion. it was up by jpy 36.3 billion From here and after, I would like to talk about the Rakuten ecosystem in a qualitative manner. I would like the investors to have deep understanding on our ecosystem. In Japan, ecosystem, I think the ecosystem is created by Rakuten Group. Basically, the conglomerate discount, like the 1 + 1 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 1 + 1 is greater than two. It will be expanding. From here and after, I would like to talk about the Rakuten ecosystem in a qualitative manner. from here and after i would like to talk about the rakuten ecosystem in a qualitative manner I would like the investors to have deep understanding on our ecosystem. i would like the investors to have deep understanding on our ecosystem In Japan, ecosystem, I think the ecosystem is created by Rakuten Group. in japan ecosystem i think the ecosystem is created by rakuten group Basically, the conglomerate discount, like the 1 + 1 due to various reasons, is less than two. basically the conglomerate discount like the 1 + 1 due to various reasons is less than two However, in our case, it's not a simple conglomerate. however in our case it's not a simple conglomerate We do have a huge synergy in our group services. we do have a huge synergy in our group services That's why 1 + 1 is greater than two. that's why 1 + 1 is greater than two It will be expanding. it will be expanding In particular, recently, because of AI or agentic AI advance, what would happen with that? In various stages, Rakuten ecosystem, so-called we do have growth and the defense and offense and defense, we are able to achieve both sides. And the foundation for this is one single brand name. The common ID we do have and common points. With that, we do have 70 services connected. We haven't emphasized this, but the monthly 45.88 million users are using some of our services. We do not call them the viewer. Actually, they are transacting our services. In particular, recently, because of AI or agentic AI advance, what would happen with that? in particular recently because of ai or agentic ai advance what would happen with that In various stages, Rakuten ecosystem, so-called we do have growth and the defense and offense and defense, we are able to achieve both sides. in various stages rakuten ecosystem so-called we do have growth and the defense and offense and defense we are able to achieve both sides And the foundation for this is one single brand name. and the foundation for this is one single brand name The common ID we do have and common points. the common id we do have and common points With that, we do have 70 services connected. with that we do have 70 services connected We haven't emphasized this, but the monthly 45.88 million users are using some of our services. we haven't emphasized this but the monthly 45.88 million users are using some of our services We do not call them the viewer. we do not call them the viewer Actually, they are transacting our services. actually they are transacting our services Other than this, from the corporate governance perspective, we do have a thorough corporate culture. Including Rakuten Mobile, they are making really hard efforts. The corporate culture, we do have more than 70 services. In all of the group companies, we do have a common culture among the group companies. Also the users, very loyal to our services. How to increase the number of users and how can we increase the number of cross use? Other than this, from the corporate governance perspective, we do have a thorough corporate culture. other than this from the corporate governance perspective we do have a thorough corporate culture Including Rakuten Mobile, they are making really hard efforts. including rakuten mobile they are making really hard efforts The corporate culture, we do have more than 70 services. the corporate culture we do have more than 70 services In all of the group companies, we do have a common culture among the group companies. in all of the group companies we do have a common culture among the group companies Also the users, very loyal to our services. also the users very loyal to our services How to increase the number of users and how can we increase the number of cross use? how to increase the number of users and how can we increase the number of cross use How to improve the LTV or the lifetime value of the customer, how can we improve this? Among that, looking at the overall CAC or customer acquisition cost, how can we lower this CAC? 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. Over the past five years from 2020-2025, so-called internet services such as EC or the travel. From those services, new users join. That is about 19.7 million. New customers from fintech, Rakuten Point Card, credit card, Bank and Securities. The customers moved from there, new users, that is 16.1 million. Through the mobile, 2.9 million. How to improve the LTV or the lifetime value of the customer, how can we improve this? how to improve the ltv or the lifetime value of the customer how can we improve this Among that, looking at the overall CAC or customer acquisition cost, how can we lower this CAC? among that looking at the overall cac or customer acquisition cost how can we lower this cac How can we bring that to the higher LTV and acquire new users to our ecosystem and how to upsell them to other services? 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. that is a big point of this ecosystem Over the past five years from 2020- 2025, so-called internet services such as EC or the travel. over the past five years from 2020- 2025 so-called internet services such as ec or the travel From those services, new users join. from those services new users join That is about 19.7 million. that is about 19.7 million New customers from fintech, Rakuten Point Card, credit card, Bank and Securities. new customers from fintech rakuten point card credit card bank and securities The customers moved from there, new users, that is 16.1 million. the customers moved from there new users that is 16.1 million Through the mobile, 2.9 million. through the mobile 2.9 million 38.71 million people who came into the ecosystem are using four point six times the number of services. Each of the services are organically connected. That's what is represented here. This is a very surprising, shocking number. The user of one segment and users of two segments and users of three segments, when we compare them, users who are using two segments are using 5.4x revenue. They are generating 5.4x the revenue of Rakuten Group. Users of three segments are generating 13.5x the revenue for us. 38.71 million people who came into the ecosystem are using four point six times the number of services. 38.71 million people who came into the ecosystem are using four point six times the number of services Each of the services are organically connected. each of the services are organically connected That's what is represented here. that's what is represented here This is a very surprising, shocking number. this is a very surprising shocking number The user of one segment and users of two segments and users of three segments, when we compare them, users who are using two segments are using 5.4x revenue. the user of one segment and users of two segments and users of three segments when we compare them users who are using two segments are using 5.4x revenue They are generating 5.4x the revenue of Rakuten Group. they are generating 5.4x the revenue of rakuten group Users of three segments are generating 13.5x the revenue for us. users of three segments are generating 13.5x the revenue for us The customers or membership nurturing is now working. Two, three, four services, when users use all these services, what happens is that, for example, the users who are using one service, the churn rate of the user of one service is baselined as 100. Users of four services only have one churn rate. The more services users use Rakuten services, the higher the loyalty of the users becomes. As a result, looking at our strategy holistically, the relatively low CAC services are used to acquire customers. Among these users, we upsell them to high LTV services, including mobile and financial services. The customers or membership nurturing is now working. the customers or membership nurturing is now working Two, three, four services, when users use all these services, what happens is that, for example, the users who are using one service, the churn rate of the user of one service is baselined as 100. two three four services when users use all these services what happens is that for example the users who are using one service the churn rate of the user of one service is baselined as 100 Users of four services only have one churn rate. users of four services only have one churn rate The more services users use Rakuten services, the higher the loyalty of the users becomes. the more services users use rakuten services the higher the loyalty of the users becomes As a result, looking at our strategy holistically, the relatively low CAC services are used to acquire customers. as a result looking at our strategy holistically the relatively low cac services are used to acquire customers Among these users, we upsell them to high LTV services, including mobile and financial services. among these users we upsell them to high ltv services including mobile and financial services That's our strategy. By the way, mobile and fintech, the users of these services, about 85% of new users of these segments came from the Rakuten channels, Rakuten ecosystem. There are many functions that we can utilize, and that is currently working very well. AI is advancing, and what will happen to all these services? That is the question. We have rich data on our hand. Not only online data, we have offline data as well. Globally speaking, we have really valuable and rich data. That's our strategy. that's our strategy By the way, mobile and fintech, the users of these services, about 85% of new users of these segments came from the Rakuten channels, Rakuten ecosystem. by the way mobile and fintech the users of these services about 85% of new users of these segments came from the rakuten channels rakuten ecosystem There are many functions that we can utilize, and that is currently working very well. there are many functions that we can utilize and that is currently working very well AI is advancing, and what will happen to all these services? ai is advancing and what will happen to all these services That is the question. that is the question We have rich data on our hand. we have rich data on our hand Not only online data, we have offline data as well. not only online data we have offline data as well Globally speaking, we have really valuable and rich data. globally speaking we have really valuable and rich data Through the use of the data, we can provide many services. We can also have more customers come to our ecosystem through the use of AI. We will talk about this later again, but the profitability is going up more and more, which means that we have been decreasing the operating costs through the use of AI. We are also promoting cross-use using AI, and we can accelerate the customer acquisition using AI, and that's what we have been doing. On the offense and on the defense, AI can accelerate our strategy, and that's what's happening. Through the use of the data, we can provide many services. through the use of the data we can provide many services We can also have more customers come to our ecosystem through the use of AI. we can also have more customers come to our ecosystem through the use of ai We will talk about this later again, but the profitability is going up more and more, which means that we have been decreasing the operating costs through the use of AI. we will talk about this later again but the profitability is going up more and more which means that we have been decreasing the operating costs through the use of ai We are also promoting cross-use using AI, and we can accelerate the customer acquisition using AI, and that's what we have been doing. we are also promoting cross-use using ai and we can accelerate the customer acquisition using ai and that's what we have been doing On the offense and on the defense, AI can accelerate our strategy, and that's what's happening. on the offense and on the defense ai can accelerate our strategy and that's what's happening Okay, now move on to the segment results by each segment. Shopping, travel, the internet service segment. The revenue was JPY 317.6 billion. Not only from Ichiba and Travel, Kobo and Viber content businesses are performing pretty well to grow. Non-GAAP OI, JPY 21.2 billion comparing to the year before, +65.6%. Each KPI. Domestic EC GMS, that is JPY 1.5 trillion, which is 4.8% YoY growth. Travel, +16.4% increase YoY. Investment business IRR and is quite performing well. International BU revenue, $459 million, about 7% growth this time. Okay, now move on to the segment results by each segment. okay now move on to the segment results by each segment Shopping, travel, the internet service segment. shopping travel the internet service segment The revenue was JPY 317.6 billion. the revenue was jpy 317.6 billion Not only from Ichiba and Travel, Kobo and Viber content businesses are performing pretty well to grow. not only from ichiba and travel kobo and viber content businesses are performing pretty well to grow Non-GAAP OI, JPY 21.2 billion comparing to the year before, + 65.6%. non-gaap oi jpy 21.2 billion comparing to the year before + 65.6% Each KPI. each kpi Domestic EC GMS, that is JPY 1.5 trillion, which is 4.8% YoY growth. domestic ec gms that is jpy 1.5 trillion which is 4.8% yoy growth Travel, + 16.4% increase YoY. travel + 16.4% increase yoy Investment business IRR and is quite performing well. investment business irr and is quite performing well International BU revenue, $459 million, about 7% growth this time. international bu revenue $459 million about 7% growth this time What we have to mention is AI-led advertisement business has been performing pretty well. This JPY 61.9 billion in Q1 and 13% growth YoY. Let me look into each business in detail. First of all, domestic EC. As mentioned before, GMS 4.8% YoY growth and revenue +4.0% and OI +29.2% growth. It's about the JPY 31 billion we achieved. The next is travel business. It's really growing today. Travel business, the GTV on YoY basis +16.4%, and particularly inbound demand, which is the 69.7% growth. Even for the domestic travel, there is a growth of +8.1%. What we have to mention is AI-led advertisement business has been performing pretty well. what we have to mention is ai-led advertisement business has been performing pretty well This JPY 61.9 billion in Q1 and 13% growth YoY. this jpy 61.9 billion in q1 and 13% growth yoy Let me look into each business in detail. let me look into each business in detail First of all, domestic EC. first of all domestic ec As mentioned before, GMS 4.8% YoY growth and revenue + 4.0% and OI + 29.2% growth. as mentioned before gms 4.8% yoy growth and revenue + 4.0% and oi + 29.2% growth It's about the JPY 31 billion we achieved. it's about the jpy 31 billion we achieved The next is travel business. the next is travel business It's really growing today. it's really growing today Travel business, the GTV on YoY basis + 16.4%, and particularly inbound demand, which is the 69.7% growth. travel business the gtv on yoy basis + 16.4% and particularly inbound demand which is the 69.7% growth Even for the domestic travel, there is a growth of + 8.1%. even for the domestic travel there is a growth of + 8.1% We have added direct AI capability here, which will help the searching hotel much easier and also the real concierge. Just like as you if you are talking to the travel agency to decide where you want to go and book your hotel, that is possible with this AI. Next is the growth investment business. Trying to lower the cost or increase the revenue, and that is what we are doing really hard. About the JPY 2.7 billion profitability improve was made non-GAAP OI. What we have to stop needs to be stopped. For example, NBA Rakuten, this is a basketball streaming service we have terminated. We have added direct AI capability here, which will help the searching hotel much easier and also the real concierge. we have added direct ai capability here which will help the searching hotel much easier and also the real concierge Just like as you if you are talking to the travel agency to decide where you want to go and book your hotel, that is possible with this AI. just like as you if you are talking to the travel agency to decide where you want to go and book your hotel that is possible with this ai Next is the growth investment business. next is the growth investment business Trying to lower the cost or increase the revenue, and that is what we are doing really hard. trying to lower the cost or increase the revenue and that is what we are doing really hard About the JPY 2.7 billion profitability improve was made non-GAAP OI. about the jpy 2.7 billion profitability improve was made non-gaap oi What we have to stop needs to be stopped. what we have to stop needs to be stopped For example, NBA Rakuten, this is a basketball streaming service we have terminated. for example nba rakuten this is a basketball streaming service we have terminated For the Rakuten Mart in the Western area, we have terminated the service there. That will improve the remaining growth invest base businesses. It's still in the middle way. The next is international BU. Reward, YoY basis, there is a big jump from the YoY basis and also the streaming service, Viki, revenue has been steadily increasing. Unfortunately, it was not making a huge loss, but it was really difficult to turn into the profit, which is the Rakuten France marketplace, and that will be sold or terminated by the end of 2026, we have decided. With that non-GAAP OI for this Q1 FY 2026, $7.1 million. This is the shopping. We do have a higher season in Q4 for revenue. The next is ad business revenue, which is growing largely. The Q1 revenue was JPY 61.9 billion. For the Rakuten Mart in the Western area, we have terminated the service there. for the rakuten mart in the western area we have terminated the service there That will improve the remaining growth invest base businesses. that will improve the remaining growth invest base businesses It's still in the middle way. it's still in the middle way The next is international BU. the next is international bu Reward, YoY basis, there is a big jump from the YoY basis and also the streaming service, Viki, revenue has been steadily increasing. reward yoy basis there is a big jump from the yoy basis and also the streaming service viki revenue has been steadily increasing Unfortunately, it was not making a huge loss, but it was really difficult to turn into the profit, which is the Rakuten France marketplace, and that will be sold or terminated by the end of 2026, we have decided. unfortunately it was not making a huge loss but it was really difficult to turn into the profit which is the rakuten france marketplace and that will be sold or terminated by the end of 2026 we have decided With that non-GAAP OI for this Q1 FY 2026, $7.1 million. with that non-gaap oi for this q1 fy 2026 $7.1 million This is the shopping. this is the shopping We do have a higher season in Q4 for revenue. we do have a higher season in q4 for revenue The next is ad business revenue, which is growing largely. the next is ad business revenue which is growing largely The Q1 revenue was JPY 61.9 billion . the q1 revenue was jpy 61.9 billion And so the, uh, 13% increase YoY growth, it's been accelerated. Using the AI for various advertisement services. For example, Rakuten Ichiba's for advertisement. Once you decide the budget, automatically we will replace the optimized advertisement with that. GMS at Ichiba will be growing. Not only that, but also for the merchant revenue had improved. The taking the power of AI and taking advantage of Rakuten data has a great potential or possibility. Rakuten advertisement and the common challenges in advertisement businesses, what are the difference between the two? And so the, uh, 13% increase YoY growth, it's been accelerated. and so the uh 13% increase yoy growth it's been accelerated Using the AI for various advertisement services. using the ai for various advertisement services For example, Rakuten Ichiba's for advertisement. for example rakuten ichiba's for advertisement Once you decide the budget, automatically we will replace the optimized advertisement with that. once you decide the budget automatically we will replace the optimized advertisement with that GMS at Ichiba will be growing. gms at ichiba will be growing Not only that, but also for the merchant revenue had improved. not only that but also for the merchant revenue had improved The taking the power of AI and taking advantage of Rakuten data has a great potential or possibility. the taking the power of ai and taking advantage of rakuten data has a great potential or possibility Rakuten advertisement and the common challenges in advertisement businesses, what are the difference between the two? rakuten advertisement and the common challenges in advertisement businesses what are the difference between the two Our targeting for the AI use the actual data or actual purchase data. On the other hand, other company, they use behavioral data, for example, search and the view. We do have a Rakuten ID, we can have accurate analysis of the results. On the other hand, the common challenges. It is difficult to use the cookie. There is a restriction, so the accurate tracking or measurement of the result is quite difficult. The coverage, as mentioned before, well, we do have so many users using various services in our group, so data is one thing and also the advertisement placement, web page or application. Our targeting for the AI use the actual data or actual purchase data. our targeting for the ai use the actual data or actual purchase data On the other hand, other company, they use behavioral data, for example, search and the view. on the other hand other company they use behavioral data for example search and the view We do have a Rakuten ID, we can have accurate analysis of the results. we do have a rakuten id we can have accurate analysis of the results On the other hand, the common challenges. on the other hand the common challenges It is difficult to use the cookie. it is difficult to use the cookie There is a restriction, so the accurate tracking or measurement of the result is quite difficult. there is a restriction so the accurate tracking or measurement of the result is quite difficult The coverage, as mentioned before, well, we do have so many users using various services in our group, so data is one thing and also the advertisement placement, web page or application. the coverage as mentioned before well we do have so many users using various services in our group so data is one thing and also the advertisement placement web page or application We do have rich the asset of that. The AI would be growing our advertisement business in Rakuten. Next is the Fintech segment. Revenue was up 73.1% to JPY 375.3 billion. All the services are growing steadily, especially Rakuten Bank and Rakuten Card. They have increased revenue steadily and also cost is controlled. The revenue, the non-GAAP operating income was JPY 58.5 billion, up 33.8% year-on-year. These are the major KPIs. We do have rich the asset of that. we do have rich the asset of that The AI would be growing our advertisement business in Rakuten. the ai would be growing our advertisement business in rakuten Next is the Fintech segment. next is the fintech segment Revenue was up 73.1% to JPY 375.3 billion. revenue was up 73.1% to jpy 375.3 billion All the services are growing steadily, especially Rakuten Bank and Rakuten Card. all the services are growing steadily especially rakuten bank and rakuten card They have increased revenue steadily and also cost is controlled. they have increased revenue steadily and also cost is controlled The revenue, the non-GAAP operating income was JPY 58.5 billion, up 33.8% year-on-year. the revenue the non-gaap operating income was jpy 58.5 billion up 33.8% year-on-year These are the major KPIs. these are the major kpis Rakuten Card shopping GTV was up by 8.5% to JPY 6.8 trillion, and the number of Rakuten Bank accounts was up 7.3% to 18.07 million, almost 20 million. Rakuten Bank deposit balance is JPY 12.9 trillion, up by 12.9%. There is severe competition, but it was JPY 12.9 trillion. It's growing. Rakuten Securities general accounts, it surpassed 14 million in April. NISA accounts, as a leading company, we are driving NISA, and there is 7.53 million accounts. For all generations, young people are opening up NISA accounts at Rakuten Securities as well. Rakuten Card shopping GTV was up by 8.5% to JPY 6.8 trillion, and the number of Rakuten Bank accounts was up 7.3% to 18.07 million, almost 20 million. rakuten card shopping gtv was up by 8.5% to jpy 6.8 trillion and the number of rakuten bank accounts was up 7.3% to 18.07 million almost 20 million Rakuten Bank deposit balance is JPY 12.9 trillion, up by 12.9%. rakuten bank deposit balance is jpy 12.9 trillion up by 12.9% There is severe competition, but it was JPY 12.9 trillion. there is severe competition but it was jpy 12.9 trillion It's growing. it's growing Rakuten Securities general accounts, it surpassed 14 million in April. rakuten securities general accounts it surpassed 14 million in april NISA accounts, as a leading company, we are driving NISA, and there is 7.53 million accounts. nisa accounts as a leading company we are driving nisa and there is 7.53 million accounts For all generations, young people are opening up NISA accounts at Rakuten Securities as well. for all generations young people are opening up nisa accounts at rakuten securities as well Rakuten Securities deposited assets JPY 50.3 trillion, up by about 40% YoY. On Rakuten Card first. The so-called interest rate has been increasing, so how can we grow this business was the question. The number of members and GTV and assets and cost control, all of them are working successfully. An 8.5% increase in GTV and revenue was up by 18.4% and non-GAAP OI up by 15.7% to JPY 16.8 billion. On payment. It is also growing. The revenue was up 12% to JPY 27.3 billion, and non-GAAP OI was JPY 2.1 trillion, up 14.4% YoY. Rakuten Securities deposited assets JPY 50.3 trillion, up by about 40% YoY. rakuten securities deposited assets jpy 50.3 trillion up by about 40% yoy On Rakuten Card first. on rakuten card first The so-called interest rate has been increasing, so how can we grow this business was the question. the so-called interest rate has been increasing so how can we grow this business was the question The number of members and GTV and assets and cost control, all of them are working successfully. the number of members and gtv and assets and cost control all of them are working successfully An 8.5% increase in GTV and revenue was up by 18.4% and non-GAAP OI up by 15.7% to JPY 16.8 billion. an 8.5% increase in gtv and revenue was up by 18.4% and non-gaap oi up by 15.7% to jpy 16.8 billion On payment. on payment It is also growing. it is also growing The revenue was up 12% to JPY 27.3 billion, and non-GAAP OI was JPY 2.1 trillion, up 14.4% YoY. the revenue was up 12% to jpy 27.3 billion and non-gaap oi was jpy 2.1 trillion up 14.4% yoy On Rakuten Bank. The bank side already made an announcement that the ordinary income was up 38.4% to JPY 255.5 billion. Ordinary profit was up 44.1% to JPY 103 billion. The capital adequacy ratio is above 10% and ROE 21.7%. All in all, the number of bank accounts and number of main accounts, total deposit balance, they are all growing across the board. With the utilization of AI, the expense ratio has been going down. Rakuten Securities. Other securities are also facing the same situation, but the securities market is quite active. The number of general accounts has also surpassed 14 million, and operating revenue JPY 50.3 billion, up 43.7% year-on-year. On Rakuten Bank. on rakuten bank The bank side already made an announcement that the ordinary income was up 38.4% to JPY 255.5 billion. the bank side already made an announcement that the ordinary income was up 38.4% to jpy 255.5 billion Ordinary profit was up 44.1% to JPY 103 billion. ordinary profit was up 44.1% to jpy 103 billion The capital adequacy ratio is above 10% and ROE 21.7%. the capital adequacy ratio is above 10% and roe 21.7% All in all, the number of bank accounts and number of main accounts, total deposit balance, they are all growing across the board. all in all the number of bank accounts and number of main accounts total deposit balance they are all growing across the board With the utilization of AI, the expense ratio has been going down. with the utilization of ai the expense ratio has been going down Rakuten Securities. rakuten securities Other securities are also facing the same situation, but the securities market is quite active. other securities are also facing the same situation but the securities market is quite active The number of general accounts has also surpassed 14 million, and operating revenue JPY 50.3 billion, up 43.7% year-on-year. the number of general accounts has also surpassed 14 million and operating revenue jpy 50.3 billion up 43.7% year-on-year Operating income versus the previous year up by 92.5%, almost doubled to JPY 14.6 billion. Insurance. It's also trending favorably. The revenue itself, we have high margin products that we are focusing on. Looking at the revenue, the absolute number may have gone down, but the OI was JPY 1.7 billion. It's been trending steadily. Especially Rakuten Auto Insurance, that's where we focus on, and the sales has been expanding. As for life insurance, we have face-to-face and online and group insurance. All channels are doing well. Operating income versus the previous year up by 92.5%, almost doubled to JPY 14.6 billion. operating income versus the previous year up by 92.5% almost doubled to jpy 14.6 billion Insurance. insurance It's also trending favorably. it's also trending favorably The revenue itself, we have high margin products that we are focusing on. the revenue itself we have high margin products that we are focusing on Looking at the revenue, the absolute number may have gone down, but the OI was JPY 1.7 billion. looking at the revenue the absolute number may have gone down but the oi was jpy 1.7 billion It's been trending steadily. it's been trending steadily Especially Rakuten Auto Insurance, that's where we focus on, and the sales has been expanding. especially rakuten auto insurance that's where we focus on and the sales has been expanding As for life insurance, we have face-to-face and online and group insurance. as for life insurance we have face-to-face and online and group insurance All channels are doing well. all channels are doing well On the fintech business, I'd like to touch upon reorganization. As of now, as far as we can disclose, I'd like to talk about this topic. First of all, the financial synergy is quite significant. The Rakuten Card, Rakuten Securities. In Rakuten Bank, some of them are undertaken at Rakuten Bank, but on top of that, we also have external interest-bearing debt. A rather high interest rate is there. With the restructuring in the fintech group, we can complete the cycle ourselves. On the fintech business, I'd like to touch upon reorganization. on the fintech business i'd like to touch upon reorganization As of now, as far as we can disclose, I'd like to talk about this topic. as of now as far as we can disclose i'd like to talk about this topic First of all, the financial synergy is quite significant. first of all the financial synergy is quite significant The Rakuten Card, Rakuten Securities. the rakuten card rakuten securities In Rakuten Bank, some of them are undertaken at Rakuten Bank, but on top of that, we also have external interest-bearing debt. in rakuten bank some of them are undertaken at rakuten bank but on top of that we also have external interest-bearing debt A rather high interest rate is there. a rather high interest rate is there With the restructuring in the fintech group, we can complete the cycle ourselves. with the restructuring in the fintech group we can complete the cycle ourselves The interest burden can be controlled, and also the asset management can be done in the group in by ourselves. In terms of the cross-use, we can accelerate that. Especially, we can consolidate and integrate applications, and we can do that more easily with this reorganization to achieve Super ARPU. We can maximize corporate customer base. The customers may have the corporate account at Rakuten Bank, but they may not have the personal account or vice versa. The interest burden can be controlled, and also the asset management can be done in the group in by ourselves. the interest burden can be controlled and also the asset management can be done in the group in by ourselves In terms of the cross-use, we can accelerate that. in terms of the cross-use we can accelerate that Especially, we can consolidate and integrate applications, and we can do that more easily with this reorganization to achieve Super ARPU. especially we can consolidate and integrate applications and we can do that more easily with this reorganization to achieve super arpu We can maximize corporate customer base. we can maximize corporate customer base The customers may have the corporate account at Rakuten Bank, but they may not have the personal account or vice versa. the customers may have the corporate account at rakuten bank but they may not have the personal account or vice versa Corporate customer base can be commonized to expand the business scale. More than anything, including Rakuten Group, we can utilize AI further. Even more than before, various financial services can be offered in a seamless manner. The identification of the person is the key, but eKYC can be used to automatically verify the identification, and then we can centralize the data by so doing. Synergy will be quite large. Corporate customer base can be commonized to expand the business scale. corporate customer base can be commonized to expand the business scale More than anything, including Rakuten Group, we can utilize AI further. more than anything including rakuten group we can utilize ai further Even more than before, various financial services can be offered in a seamless manner. even more than before various financial services can be offered in a seamless manner The identification of the person is the key, but eKYC can be used to automatically verify the identification, and then we can centralize the data by so doing. the identification of the person is the key but ekyc can be used to automatically verify the identification and then we can centralize the data by so doing Synergy will be quite large. synergy will be quite large Finally. Last from myself, talking about the mobile segment, it has been progressing smoothly in both the revenue and OI. The revenue, 18.5% YoY increase, which is JPY 131.2 billion. Non-GAAP OI, JPY 13.3 billion YoY improvement and JPY -38 billion. EBITDA, JPY 1 billion. The pre-marketing cash flow, the so-called new customers or new stores, excluding cost related to that, it's already reached JPY 28.7 billion. Through [EBITDA basis, it's beyond JPY 100 billion. The premium PMCF, growing 85.7%. Major KPI, Rakuten Mobile, the YoY basis, 10.36 million under subscriber, increasing 1.74 million. Finally. finally Last from myself, talking about the mobile segment, it has been progressing smoothly in both the revenue and OI. last from myself talking about the mobile segment it has been progressing smoothly in both the revenue and oi The revenue, 18.5% YoY increase, which is JPY 131.2 billion. the revenue 18.5% yoy increase which is jpy 131.2 billion Non-GAAP OI, JPY 13.3 billion YoY improvement and JPY -38 billion. non-gaap oi jpy 13.3 billion yoy improvement and jpy -38 billion EBITDA, JPY 1 billion. ebitda jpy 1 billion The pre-marketing cash flow, the so-called new customers or new stores, excluding cost related to that, it's already reached JPY 28.7 billion. the pre-marketing cash flow the so-called new customers or new stores excluding cost related to that it's already reached jpy 28.7 billion Through [EBITDA basis, it's beyond JPY 100 billion. through [ebitda basis it's beyond jpy 100 billion The premium PMCF, growing 85.7%. the premium pmcf growing 85.7% Major KPI, Rakuten Mobile, the YoY basis, 10.36 million under subscriber, increasing 1.74 million. major kpi rakuten mobile the yoy basis 10.36 million under subscriber increasing 1.74 million The adjusted churn rate has been improving. ARPU, mainly around the store, it's getting increasing. On the other hand, mainly for the communication software, which is Rakuten Symphony, the number of customers are increasing and number of partners are increasing, this has been progressing smoothly. Let me go into detail about Rakuten Mobile. The revenue is growing by 23.9% YoY, recorded JPY 108 billion. Non-GAAP OI, improvement of JPY 12.7 billion. Particularly, we are still at the phase of increasing the customer bases, we are still in the growing phase. Excluding those growth investment, already achieved this, JPY 287 million, JPY 7 billion. EBITDA, excluding the property tax, and it's JPY 6.6 billion. The adjusted churn rate has been improving. the adjusted churn rate has been improving ARPU, mainly around the store, it's getting increasing. arpu mainly around the store it's getting increasing On the other hand, mainly for the communication software, which is Rakuten Symphony, the number of customers are increasing and number of partners are increasing, this has been progressing smoothly. on the other hand mainly for the communication software which is rakuten symphony the number of customers are increasing and number of partners are increasing this has been progressing smoothly Let me go into detail about Rakuten Mobile. let me go into detail about rakuten mobile The revenue is growing by 23.9% YoY, recorded JPY 108 billion. the revenue is growing by 23.9% yoy recorded jpy 108 billion Non-GAAP OI, improvement of JPY 12.7 billion. non-gaap oi improvement of jpy 12.7 billion Particularly, we are still at the phase of increasing the customer bases, we are still in the growing phase. particularly we are still at the phase of increasing the customer bases we are still in the growing phase Excluding those growth investment, already achieved this, JPY 287 million , JPY 7 billion. excluding those growth investment already achieved this, jpy 287 million jpy 7 billion EBITDA, excluding the property tax, and it's JPY 6.6 billion. ebitda excluding the property tax and it's jpy 6.6 billion The net increase in the first quarter of last year was 324,000 lines. In this first quarter, it was 373,000. It was up by 15%. As for churn rate, on a quarter-to-quarter basis, it was down from 1.99%-1.76%. In April, it was 1.45%. It was the improvement of 34 basis points. The one thing I can say is that there are people who are going around different areas to earn points. They are leaving the carriers quickly. Those users with more than five lines are now charged with our fee, and we are also strengthening the role to verify the identification. The net increase in the first quarter of last year was 324,000 lines. the net increase in the first quarter of last year was 324,000 lines In this first quarter, it was 373,000. in this first quarter it was 373,000 It was up by 15%. it was up by 15% As for churn rate, on a quarter-to-quarter basis, it was down from 1.99%- 1.76%. as for churn rate on a quarter-to-quarter basis it was down from 1.99%- 1.76% In April, it was 1.45%. in april it was 1.45% It was the improvement of 34 basis points. it was the improvement of 34 basis points The one thing I can say is that there are people who are going around different areas to earn points. the one thing i can say is that there are people who are going around different areas to earn points They are leaving the carriers quickly. they are leaving the carriers quickly Those users with more than five lines are now charged with our fee, and we are also strengthening the role to verify the identification. those users with more than five lines are now charged with our fee and we are also strengthening the role to verify the identification That succeeded, and we were able to curb the short-term users as a result. That is a key point. Having said that, the user survey showed that the 76.4% of the Rakuten users are saying that they intend to continue using our service. Rakuten Mobile is the most considered mobile service for switching with 23.7%. We are ranked at the number one. ARPU is also about to go up. The base station construction, it is also accelerated, so the network quality will be improved as a result even further. That succeeded, and we were able to curb the short-term users as a result. that succeeded and we were able to curb the short-term users as a result That is a key point. that is a key point Having said that, the user survey showed that the 76.4% of the Rakuten users are saying that they intend to continue using our service. having said that the user survey showed that the 76.4% of the rakuten users are saying that they intend to continue using our service Rakuten Mobile is the most considered mobile service for switching with 23.7%. rakuten mobile is the most considered mobile service for switching with 23.7% We are ranked at the number one. we are ranked at the number one ARPU is also about to go up. arpu is also about to go up The base station construction, it is also accelerated, so the network quality will be improved as a result even further. the base station construction it is also accelerated so the network quality will be improved as a result even further The shortage of labor has given us a difficulty, but other companies, and the mobile industry may not have used this process, but we are going to take up the upstream process internally to accelerate the base station construction. Rakuten Symphony, the $131.4 billion, that was the number. OSS cloud, including that, everything is trending well. That is all from my end. Now, I would like to turn it over to Kaga for finance, and Ting Cai is going to talk about the AI section. The shortage of labor has given us a difficulty, but other companies, and the mobile industry may not have used this process, but we are going to take up the upstream process internally to accelerate the base station construction. the shortage of labor has given us a difficulty but other companies and the mobile industry may not have used this process but we are going to take up the upstream process internally to accelerate the base station construction Rakuten Symphony, the $131.4 billion, that was the number. rakuten symphony the $131.4 billion that was the number OSS cloud, including that, everything is trending well. oss cloud including that everything is trending well That is all from my end. that is all from my end Now, I would like to turn it over to Kaga for finance, and Ting Cai is going to talk about the AI section. now i would like to turn it over to kaga for finance and ting cai is going to talk about the ai section

Speaker 1: This is Kaga. Let me explain the financial matters. This is the first quarter consolidated financial results summary. Non-GAAP operating income came in at a strong JPY 36.3 billion. After deducting amortization of intangible asset share-based compensation and one-off items, the IFRS operating income at JPY 30.4 billion, we made a very strong start toward the goal of significantly increasing profit in FY 2026. For this first quarter and the before tax, the profit before tax is making a profit. This is a big turning point, that is our understanding. This is Kaga. this is kaga Let me explain the financial matters. let me explain the financial matters This is the first quarter consolidated financial results summary. this is the first quarter consolidated financial results summary Non-GAAP operating income came in at a strong JPY 36.3 billion. non-gaap operating income came in at a strong jpy 36.3 billion After deducting amortization of intangible asset share-based compensation and one-off items, the IFRS operating income at JPY 30.4 billion, we made a very strong start toward the goal of significantly increasing profit in FY 2026. after deducting amortization of intangible asset share-based compensation and one-off items the ifrs operating income at jpy 30.4 billion we made a very strong start toward the goal of significantly increasing profit in fy 2026 For this first quarter and the before tax, the profit before tax is making a profit. for this first quarter and the before tax the profit before tax is making a profit This is a big turning point, that is our understanding. this is a big turning point that is our understanding For this year, continuously we will revisit our business portfolio, there is a possibility of revisiting visit to business portfolio, but we are lowering the amount of risk on the balance sheet. That is how we are thinking of. This is about the financial strategies. There is no change to our financial strategy as previously communicated. We remain committed to continuing strategic investment in the mobile business while maintaining financial discipline and pursuing further credit improvement. For this year, continuously we will revisit our business portfolio, there is a possibility of revisiting visit to business portfolio, but we are lowering the amount of risk on the balance sheet. for this year continuously we will revisit our business portfolio there is a possibility of revisiting visit to business portfolio but we are lowering the amount of risk on the balance sheet That is how we are thinking of. that is how we are thinking of This is about the financial strategies. this is about the financial strategies There is no change to our financial strategy as previously communicated. there is no change to our financial strategy as previously communicated We remain committed to continuing strategic investment in the mobile business while maintaining financial discipline and pursuing further credit improvement. we remain committed to continuing strategic investment in the mobile business while maintaining financial discipline and pursuing further credit improvement We will maintain this policy. The most important thing, which is one of the financial KPI for the net debt to EBITDA of our non-fintech businesses. One, we are targeting a reduction to below 5x by 2027. We are also maintaining our target for consolidated equity ratio of 10% over the long term and 5% over the medium term. We will maintain this policy. we will maintain this policy The most important thing, which is one of the financial KPI for the net debt to EBITDA of our non-fintech businesses. the most important thing which is one of the financial kpi for the net debt to ebitda of our non-fintech businesses One, we are targeting a reduction to below 5x by 2027. one we are targeting a reduction to below 5x by 2027 We are also maintaining our target for consolidated equity ratio of 10% over the long term and 5% over the medium term. we are also maintaining our target for consolidated equity ratio of 10% over the long term and 5% over the medium term Regarding the ratio of net interest-bearing debt to EBITDA in non-fintech businesses, the ratio, due to both improved EBITDA and an increase in the valuation of listed securities, the ratio has declined to 5.6x as of the end of March. For the target at the end of fiscal year 2026, we have set a slightly conservative goal of around 6x. Our commitment to improving profitability and reducing interest-bearing debt remains unchanged. We are also making steady progress on funding for bond redemptions. For this year, senior bond redemption are planned to be covered by cash on hand. Last month, April, we had the first call date in April. Regarding the ratio of net interest-bearing debt to EBITDA in non-fintech businesses, the ratio, due to both improved EBITDA and an increase in the valuation of listed securities, the ratio has declined to 5.6x as of the end of March. regarding the ratio of net interest-bearing debt to ebitda in non-fintech businesses the ratio due to both improved ebitda and an increase in the valuation of listed securities the ratio has declined to 5.6x as of the end of march For the target at the end of fiscal year 2026, we have set a slightly conservative goal of around 6x . for the target at the end of fiscal year 2026 we have set a slightly conservative goal of around 6x Our commitment to improving profitability and reducing interest-bearing debt remains unchanged. our commitment to improving profitability and reducing interest-bearing debt remains unchanged We are also making steady progress on funding for bond redemptions. we are also making steady progress on funding for bond redemptions For this year, senior bond redemption are planned to be covered by cash on hand. for this year senior bond redemption are planned to be covered by cash on hand Last month, April, we had the first call date in April. last month april we had the first call date in april The U.S. dollar denominated perpetual subordinate bonds and have been fully redeemed using proceeds from the domestic perpetual subordinate bonds issued in October of last year. For the perspective of proactive maturity management, we have already began planning for redemption from 2027 onwards in addition to maximize free cash flow of the group. Where debt financing is required, we will carefully monitor market condition, including foreign exchange and interest rate trends, and evaluate the optional funding options from the full range of available options. The U.S. dollar denominated perpetual subordinate bonds and have been fully redeemed using proceeds from the domestic perpetual subordinate bonds issued in October of last year. the u.s dollar denominated perpetual subordinate bonds and have been fully redeemed using proceeds from the domestic perpetual subordinate bonds issued in october of last year For the perspective of proactive maturity management, we have already began planning for redemption from 2027 onwards in addition to maximize free cash flow of the group. for the perspective of proactive maturity management we have already began planning for redemption from 2027 onwards in addition to maximize free cash flow of the group Where debt financing is required, we will carefully monitor market condition, including foreign exchange and interest rate trends, and evaluate the optional funding options from the full range of available options. where debt financing is required we will carefully monitor market condition including foreign exchange and interest rate trends and evaluate the optional funding options from the full range of available options We recognize that our series of proactive initiative toward financial soundness have been continuously evaluated positively by the market. The trend in the spread of our corporate bonds issued in previous years and five year CDS spreads show relative improvements even when compared to the market indices. Going forward, we will continue to work on further strengthening our financial structure and maintaining disciplined financial management to sustain and enhance this evaluation. This is all about the financial section. Now we would like to move on to the AI initiative and see Chief AI & Data Officer Ting Cai would be explaining. We recognize that our series of proactive initiative toward financial soundness have been continuously evaluated positively by the market. we recognize that our series of proactive initiative toward financial soundness have been continuously evaluated positively by the market The trend in the spread of our corporate bonds issued in previous years and five year CDS spreads show relative improvements even when compared to the market indices. the trend in the spread of our corporate bonds issued in previous years and five year cds spreads show relative improvements even when compared to the market indices Going forward, we will continue to work on further strengthening our financial structure and maintaining disciplined financial management to sustain and enhance this evaluation. going forward we will continue to work on further strengthening our financial structure and maintaining disciplined financial management to sustain and enhance this evaluation This is all about the financial section. this is all about the financial section Now we would like to move on to the AI initiative and see Chief AI & Data Officer Ting Cai would be explaining. now we would like to move on to the ai initiative and see chief ai & data officer ting cai would be explaining

Speaker 3: Thank you, Kaga-san. This is Ting. I'm the Chief AI and Data Officer of Rakuten Group. Today, I'm very excited to share with you our AI strategy, how we set Rakuten apart, and highlight our progress in rolling out AI agent across Rakuten ecosystem. We continue to pursue Rakuten AI vision to augment human creativity with the power of AI. We are leveraging our differentiated advantage, our ubiquitous channel, reaching 10 million online and offline touchpoints, and our connected ecosystem with 46 million online monthly active user in Japan. Thank you, Kaga-san. thank you kaga-san This is Ting. this is ting I'm the Chief AI and Data Officer of Rakuten Group. i'm the chief ai and data officer of rakuten group Today, I'm very excited to share with you our AI strategy, how we set Rakuten apart, and highlight our progress in rolling out AI agent across Rakuten ecosystem. today i'm very excited to share with you our ai strategy how we set rakuten apart and highlight our progress in rolling out ai agent across rakuten ecosystem We continue to pursue Rakuten AI vision to augment human creativity with the power of AI. we continue to pursue rakuten ai vision to augment human creativity with the power of ai We are leveraging our differentiated advantage, our ubiquitous channel, reaching 10 million online and offline touchpoints, and our connected ecosystem with 46 million online monthly active user in Japan. we are leveraging our differentiated advantage our ubiquitous channel reaching 10 million online and offline touchpoints and our connected ecosystem with 46 million online monthly active user in japan That connected ecosystem make it much easier for user to discover new services, reducing Customer Acquisition Cost. With our diverse portfolio of businesses, we have built one of the most comprehensive ecosystem that can meet almost every user need in both daily and professional life. Every interaction in the ecosystem help us to accumulate unique data. Combined with AI, now we can derive more insights and provide higher quality services to our users, further nurture our relationship with our merchants, and build the growth flywheel through our Rakuten ecosystem. That connected ecosystem make it much easier for user to discover new services, reducing Customer Acquisition Cost. that connected ecosystem make it much easier for user to discover new services reducing customer acquisition cost With our diverse portfolio of businesses, we have built one of the most comprehensive ecosystem that can meet almost every user need in both daily and professional life. with our diverse portfolio of businesses we have built one of the most comprehensive ecosystem that can meet almost every user need in both daily and professional life Every interaction in the ecosystem help us to accumulate unique data. every interaction in the ecosystem help us to accumulate unique data Combined with AI, now we can derive more insights and provide higher quality services to our users, further nurture our relationship with our merchants, and build the growth flywheel through our Rakuten ecosystem. combined with ai now we can derive more insights and provide higher quality services to our users further nurture our relationship with our merchants and build the growth flywheel through our rakuten ecosystem Why do customers choose Rakuten ecosystem? Because the trust in our brand and the value and joy we provide to our users through Rakuten points, and the relationship with our merchants and partners. Now with AI, we can compound our ecosystem advantage. For every touch point we have, we can engage better with our users, whether it is a search, recommendation, advertising, customer service, AI can better understand the user intent, enhance user experience through personalization. This creates a sticky experience that increases customer satisfaction and entices them to come back to us more often. Why do customers choose Rakuten ecosystem? why do customers choose rakuten ecosystem Because the trust in our brand and the value and joy we provide to our users through Rakuten points, and the relationship with our merchants and partners. because the trust in our brand and the value and joy we provide to our users through rakuten points and the relationship with our merchants and partners Now with AI, we can compound our ecosystem advantage. now with ai we can compound our ecosystem advantage For every touch point we have, we can engage better with our users, whether it is a search, recommendation, advertising, customer service, AI can better understand the user intent, enhance user experience through personalization. for every touch point we have we can engage better with our users whether it is a search recommendation advertising customer service ai can better understand the user intent enhance user experience through personalization This creates a sticky experience that increases customer satisfaction and entices them to come back to us more often. this creates a sticky experience that increases customer satisfaction and entices them to come back to us more often Second, expand. AI can expand our services in multiple ways. It can help us to capture user intent earlier, turning vague ideas into concrete actions. It can help user to understand our points and campaigns more, because AI can guide them throughout the process. For example, in a shopping marathon, user can earn 10x points if they shop from 10 different shops in Ichiba. Which shop to choose from? Now AI can make recommendations. Second, expand. second expand AI can expand our services in multiple ways. ai can expand our services in multiple ways It can help us to capture user intent earlier, turning vague ideas into concrete actions. it can help us to capture user intent earlier turning vague ideas into concrete actions It can help user to understand our points and campaigns more, because AI can guide them throughout the process. it can help user to understand our points and campaigns more because ai can guide them throughout the process For example, in a shopping marathon, user can earn 10x points if they shop from 10 different shops in Ichiba. for example in a shopping marathon user can earn 10x points if they shop from 10 different shops in ichiba Which shop to choose from? which shop to choose from Now AI can make recommendations. now ai can make recommendations With AI, we can also interact with users in new ways, through voice, through images, and through conversations. Now more users can interact with our services in the way they prefer. Lastly, differentiate. AI is increasingly better understanding what user want to achieve, break it down into tasks, planning, executing, iterating to achieve goals. When it comes to complete transactions, this is where Rakuten presents a unique advantage. With AI, we can also interact with users in new ways, through voice, through images, and through conversations. with ai we can also interact with users in new ways through voice through images and through conversations Now more users can interact with our services in the way they prefer. now more users can interact with our services in the way they prefer Lastly, differentiate. lastly differentiate AI is increasingly better understanding what user want to achieve, break it down into tasks, planning, executing, iterating to achieve goals. ai is increasingly better understanding what user want to achieve break it down into tasks planning executing iterating to achieve goals When it comes to complete transactions, this is where Rakuten presents a unique advantage. when it comes to complete transactions this is where rakuten presents a unique advantage In a nutshell, AI enables us to engage user with more personalized services, expand usage scenario, and differentiate our services through transaction, through our memory, and connected services. With that, we can continue to build a flywheel to grow our competitive advantage. The beauty of Rakuten ecosystem is that it's all centered around one Rakuten ID. With Rakuten ID, we have accumulated precious data assets about our members, including historical context, user preferences, that enables us to provide tailored services to our users. In a nutshell, AI enables us to engage user with more personalized services, expand usage scenario, and differentiate our services through transaction, through our memory, and connected services. in a nutshell ai enables us to engage user with more personalized services expand usage scenario and differentiate our services through transaction through our memory and connected services With that, we can continue to build a flywheel to grow our competitive advantage. with that we can continue to build a flywheel to grow our competitive advantage The beauty of Rakuten ecosystem is that it's all centered around one Rakuten ID. the beauty of rakuten ecosystem is that it's all centered around one rakuten id With Rakuten ID, we have accumulated precious data assets about our members, including historical context, user preferences, that enables us to provide tailored services to our users. with rakuten id we have accumulated precious data assets about our members including historical context user preferences that enables us to provide tailored services to our users Integrated identity, context, and easy payment and delivery remains a unique advantage of Rakuten ecosystem that external AI agent have difficulty replicating. In addition, our AI agent can activate the depths of knowledge we have in each domain. By delivering specialized services, it will be difficult for other general purpose agent to match. In the AI era, data alone is not enough amount itself. Integrated identity, context, and easy payment and delivery remains a unique advantage of Rakuten ecosystem that external AI agent have difficulty replicating. integrated identity context and easy payment and delivery remains a unique advantage of rakuten ecosystem that external ai agent have difficulty replicating In addition, our AI agent can activate the depths of knowledge we have in each domain. in addition our ai agent can activate the depths of knowledge we have in each domain By delivering specialized services, it will be difficult for other general purpose agent to match. by delivering specialized services it will be difficult for other general purpose agent to match In the AI era, data alone is not enough amount itself. in the ai era data alone is not enough amount itself It is the value we create from the data that help us to build a more trusting relationship with our merchant and users. It is the additional economic and emotional value we can deliver through the Rakuten ecosystem that keeps our user coming back. As consumer increasingly shift from a traditional search engine to AI-powered information discovery services, our agentic AI strategy presents a significant opportunity for Rakuten to expand our services and capture user intent. It is the value we create from the data that help us to build a more trusting relationship with our merchant and users. it is the value we create from the data that help us to build a more trusting relationship with our merchant and users It is the additional economic and emotional value we can deliver through the Rakuten ecosystem that keeps our user coming back. it is the additional economic and emotional value we can deliver through the rakuten ecosystem that keeps our user coming back As consumer increasingly shift from a traditional search engine to AI-powered information discovery services, our agentic AI strategy presents a significant opportunity for Rakuten to expand our services and capture user intent. as consumer increasingly shift from a traditional search engine to ai-powered information discovery services our agentic ai strategy presents a significant opportunity for rakuten to expand our services and capture user intent We are focusing on two things. One is building specialized agent with deep expertise in each domain. This enables user to skip traditional web search and come directly to Rakuten for discovery, consideration, and all the way to purchase decisions. Second, we are building a super agent. User can just share a vague idea, and super agent can figure out the intent through its memory or having a dialogue with the users. We are focusing on two things. we are focusing on two things One is building specialized agent with deep expertise in each domain. one is building specialized agent with deep expertise in each domain This enables user to skip traditional web search and come directly to Rakuten for discovery, consideration, and all the way to purchase decisions. this enables user to skip traditional web search and come directly to rakuten for discovery consideration and all the way to purchase decisions Second, we are building a super agent. second we are building a super agent User can just share a vague idea, and super agent can figure out the intent through its memory or having a dialogue with the users. user can just share a vague idea and super agent can figure out the intent through its memory or having a dialogue with the users It can plan and execute then and finally helping user to complete task across multiple ecosystem services. Going forward, we will enable our agent to complete even more task and expand our opportunity establishing Rakuten AI as the go-to destination for general inquiries. From architecture point of view, we are investing deeply in each layers, from infrastructure, data center, GPU optimization, model system, and all the way to application and agent. It can plan and execute then and finally helping user to complete task across multiple ecosystem services. it can plan and execute then and finally helping user to complete task across multiple ecosystem services Going forward, we will enable our agent to complete even more task and expand our opportunity establishing Rakuten AI as the go-to destination for general inquiries. going forward we will enable our agent to complete even more task and expand our opportunity establishing rakuten ai as the go-to destination for general inquiries From architecture point of view, we are investing deeply in each layers, from infrastructure, data center, GPU optimization, model system, and all the way to application and agent. from architecture point of view we are investing deeply in each layers from infrastructure data center gpu optimization model system and all the way to application and agent Specifically our AI agent, we are focusing on a strategy where build the best but also partner with the best. We have been collaborating with the best AI company in the world, both startups and large company, such as Anthropic and OpenAI. We started collaborating with them early on. For example, we worked with OpenAI when they only had 400 people, and we worked with Anthropic before Claude Code became a phenomenon. At the same time, we want to understand the technology fundamentals so we can build from the ground up, creating our own embedding for commerce, tokenizer for Japanese. Specifically our AI agent, we are focusing on a strategy where build the best but also partner with the best. specifically our ai agent we are focusing on a strategy where build the best but also partner with the best We have been collaborating with the best AI company in the world, both startups and large company, such as Anthropic and OpenAI. we have been collaborating with the best ai company in the world both startups and large company such as anthropic and openai We started collaborating with them early on. we started collaborating with them early on For example, we worked with OpenAI when they only had 400 people, and we worked with Anthropic before Claude Code became a phenomenon. for example we worked with openai when they only had 400 people and we worked with anthropic before claude code became a phenomenon At the same time, we want to understand the technology fundamentals so we can build from the ground up, creating our own embedding for commerce, tokenizer for Japanese. at the same time we want to understand the technology fundamentals so we can build from the ground up creating our own embedding for commerce tokenizer for japanese We also innovate on top of our open source model, train with our unique data set, and optimize for domain-specific task. Today, we have a portfolio of models from mini models to super model with almost 700 billion parameters. Moving forward, we are focusing on building domain and task-specific models that are very cost efficient for our businesses and delivering better margin and more value for our customers. Since our grand launch of Rakuten AI, our agentic platform at Rakuten Optimism last year, we have continued our execution momentum. We also innovate on top of our open source model, train with our unique data set, and optimize for domain-specific task. we also innovate on top of our open source model train with our unique data set and optimize for domain-specific task Today, we have a portfolio of models from mini models to super model with almost 700 billion parameters. today we have a portfolio of models from mini models to super model with almost 700 billion parameters Moving forward, we are focusing on building domain and task-specific models that are very cost efficient for our businesses and delivering better margin and more value for our customers. moving forward we are focusing on building domain and task-specific models that are very cost efficient for our businesses and delivering better margin and more value for our customers Since our grand launch of Rakuten AI, our agentic platform at Rakuten Optimism last year, we have continued our execution momentum. since our grand launch of rakuten ai our agentic platform at rakuten optimism last year we have continued our execution momentum Today, we have 11 AI agents available, particularly in our last earnings presentation, we talk about Rakuten Ichiba. Today, I want to briefly touch on Rakuten Travel. As Miki mentioned earlier, Rakuten Travel increased the gross transaction volume 16.4%, and I have personally used it every day during the Golden Week, while I was biking from Onomichi to Imabari. Every night, I booked on Rakuten Travel. It's a delightful experience for me to discover local gem easily and quickly on the go. Today, we have 11 AI agents available, particularly in our last earnings presentation, we talk about Rakuten Ichiba. today we have 11 ai agents available particularly in our last earnings presentation we talk about rakuten ichiba Today, I want to briefly touch on Rakuten Travel. today i want to briefly touch on rakuten travel As Miki mentioned earlier, Rakuten Travel increased the gross transaction volume 16.4%, and I have personally used it every day during the Golden Week, while I was biking from Onomichi to Imabari. as miki mentioned earlier rakuten travel increased the gross transaction volume 16.4% and i have personally used it every day during the golden week while i was biking from onomichi to imabari Every night, I booked on Rakuten Travel. every night i booked on rakuten travel It's a delightful experience for me to discover local gem easily and quickly on the go. it's a delightful experience for me to discover local gem easily and quickly on the go We are moving quickly to build, test, and deploy AI agent across the ecosystem. AI agent are already live across 11 services, our plan doesn't stop here. We hope to enhance all of our services through AI agent. Our ultimate goal is to augment human creativity with the power of AI. That concludes today's presentation. Thank you. We are moving quickly to build, test, and deploy AI agent across the ecosystem. we are moving quickly to build test and deploy ai agent across the ecosystem AI agent are already live across 11 services, our plan doesn't stop here. ai agent are already live across 11 services our plan doesn't stop here We hope to enhance all of our services through AI agent. we hope to enhance all of our services through ai agent Our ultimate goal is to augment human creativity with the power of AI. our ultimate goal is to augment human creativity with the power of ai That concludes today's presentation. that concludes today's presentation Thank you. thank you

Speaker 2: This concluded the financial result presentation. Thank you very much. This concluded the financial result presentation. this concluded the financial result presentation Thank you very much. thank you very much