Japan Post Group and Rakuten Group Business Alliance:Progress Update

	April 28,	2021
Company name	Rakuten Group, Inc.
Representative	Hiroshi Mikitani
	Chairman and CEO
	(Stock Code:	4755

Tokyo Stock Exchange First Section)

Japan Post Group and Rakuten Group Business Alliance:

Progress Update

Japan Post Holdings Co., Ltd., (Headquarters: 2-3-1 Otemachi, Chiyoda-ku, Tokyo. President: Masuda Hiroya, hereinafter "Japan Post Holdings") , Japan Post Co., Ltd. (Headquarters: 2-3-1 Otemachi, Chiyoda-ku, Tokyo. Representative: Kazuhide Kinugawa, hereinafter "Japan Post") and Rakuten Group, Inc. (hereinafter "Rakuten") today shared a progress update regarding the business alliance agreement announced on March 12, 2021, between Japan Post Holdings, Japan Post and Rakuten.

1. Business alliance overview

Both Groups have agreed on the following business alliance collaboration items (as of April 28, 2021):

Logistics

• Creation of shared fulfillment centers
• Creation of shared delivery and pick-up centers
• Collaborations and initiatives between Japan Post and Rakuten to expand usage of Rakuten Fulfillment Centers and Japan Post's "Yu-Pack" parcels
• Establishment of a new joint venture by Japan Post and Rakuten to conduct the above initiatives (see section 2 below for more details), and joint commercialization of a digital transformation platform for logistics (Target: July 2021)

Mobile

• Utilization of post office event space to create customer counters to accept new signup applications for Rakuten Mobile and other functions
• Utilization of Japan Post Group's post office and delivery network for marketing initiatives
• Conducting trials ahead of nationwide implementation of above initiatives. Trials planned to start at approximately 10 post offices in May 2021.

Digital transformation

• Consultation and discussion on Japan Post Group and Rakuten Group personnel exchange to support the digital transformation of Japan Post Group
• Additional support from Rakuten Group to support the digital transformation of Japan Post Group

Financial services

• Preparations to offer a Japan Post Bank design branded Rakuten Card in 2021
• Consultation and discussion regarding a credit card to be issued by Japan Post Bank using the Rakuten Card platform, based on progress of Japan Post Bank design branded Rakuten Card
• Consultation and discussion on other cashless payment-related collaboration
• Consultation and discussion on collaboration in the insurance field

E-commerce

• Consultation and discussion on sales of products offered by Japan Post on Rakuten-operated websites
• Consultation and discussion on accepting order applications for products sold on Rakuten Ichiba at post offices

In addition to the items outlined above, both Groups will discuss and consider other strategic collaborations that contribute to increasing their respective corporate value.

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2. Overview of Business alliance partners

1. Overview of Japan Post Holdings Co., Ltd.

				(As of September 30, 2020)
(1)	Company Name	Japan Post Holdings Co., Ltd.
(2)	Head office	2-3-1 Otemachi, Chiyoda-ku, Tokyo
(3)	Name and title of	Masuda Hiroya, Director and Representative Executive Officer,
	representative	President & CEO
(4)	Business description	Underwriting and holding shares issued by Japan Post, formulating
		and ensuring the implementation of the company's basic management
		policy, exercising its rights as a shareholder, etc.
		Disposal of shares of Japan Post Bank Co., Ltd. and Japan Post
		Insurance Co., Ltd., holding of the shares until disposal, exercise of
		rights as shareholders of these companies, etc.
(5)	Stated capital	3,500 billion yen
(6)	Date of	January 23, 2006
	establishment
(7)	Number of issued	4,500,000,000 shares
	shares
(8)	Fiscal year end	March 31
(9)	Number of	250,255
	employees
(10)	Major shareholders
	and shareholding	Minister of Finance (63.3%)
	ratios
(11)	Relationships
	between parties
	Capital relationship	As of April 28, 2021, Japan Post Holdings Co., Ltd., holds 8.32% of the
		issued shares of Rakuten
	Personnel	Not applicable
	relationship
	Business relationship	Rakuten and Japan Post Holdings have concluded an agreement for a
		business alliance covering strategic partnerships in the FinTech, mobile
		and other areas, as well as the logistics area. (As of April 28, 2021)
	Applicability to	Not applicable
	related parties
(12)	Business and financial performances for the most recent three years
	Fiscal year	Year ended		Year ended		Year ended
	March 31, 2018		March 31, 2019		March 31, 2020
Consolidated net assets	14,743,234		14,788,654		12,616,774
Consolidated total assets	290,640,154		286,170,709		286,098,449
Consolidated net assets per	3,278.11		3,287,86		2,704.24
share (yen)
Consolidated revenues	12,920,375		12,774,999		11,950,185
Consolidated ordinary	916,144		830,696		864,457
income
Net income attributable to	460,623		479,419		483,733
owners of parent
Consolidated net income	112.97		118.57		119.64
per share (yen)
Dividend per share (yen)	57.00		50.00		50.00

(Unit: million yen, unless otherwise noted)

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(2) Overview of Japan Post Co., Ltd.

			(As of March 31, 2020)
(1)	Company name	Japan Post Co., Ltd.
(2)	Head office	2-3-1, Otemachi, Chiyoda-ku, Tokyo
(3)	Representative	Kazuhide Kinugawa, President and CEO
(4)	Main business	Postal business, bank counter business, insurance counter
		business, stamp sales, contract business from local public
		organizations, bank business other than the above, life insurance
		business and non-life insurance business agency business,
		domestic / international logistics business, logistics business, real
		estate business, product sales, etc.
(5)	Capital	400 billion yen
(6)	Date of establishment	October 1, 2007
(7)	Ownership ratio	Japan Post Holdings, Co., Ltd. (100%)
(8)	Relationship between	Capital	As of April 28, 2021, Japan Post Holdings
	Rakuten and Japan		Co., Ltd., the parent company of the
	Post		company, holds 8.32% of the issued
			shares of Rakuten
			Not applicable
		Personnel
			In addition to the logistics field, Rakuten
			and the company have entered into a
		Business	business alliance agreement for strategic
			alliances in fintech, mobile and other
			fields.
		Applicability to	Not applicable
		related parties

1. Financial position and business performance for the last three years

	Fiscal year	Year ended	Year ended	Year ended
		March 31, 2018	March 31, 2019	March 31, 2020
	Consolidated net assets	831,253	915,130	855,378
	Consolidated total	5,098,926	5,182,809	5,179,414
	assets
	Consolidated net assets	82,784.72	90,204.47	84,554.72
	per share (yen)
	Consolidated operating	3,881,943	3,960,669	3,839,318
	revenue
	Consolidated operating	86,564	182,021	179,034
	income
	Consolidated ordinary	85,459	179,865	168,111
	income
	Net income attributable	58,476	126,614	87,155
	to owners of parent
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	Consolidated net	5,847.69	12,661.43	8,715.53
	income per share (yen)
	Dividend per share	2,923.85	10,129.15	4,357.77
	(yen)
			(Unit: million yen, unless otherwise noted)

3．Impact on business results

The impact of this joint venture on business performance is undecided at this time, but will be disclosed as soon as the impact on business performance becomes clear.

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