Now, let me walk you through the summary. As for the revenue, for the first quarter, we were able to achieve the record high 643.6 billion yen versus the previous year, it was 14.4% increase.

It was a very steady growth. As for EBITDA, again, it was 108.8 billion yen.

MNO business, it was the very first time in the first quarter that we achieved over 100 billion yen after we entered into MNO business for the third consecutive term. As for non-GAAP operating income, since the full-fledged entry into the MNO business, we achieved a profit in the first quarter, 36.6 billion yen versus the previous year, it was up by 36.3 billion yen.

From here and after, I would like to talk about the Rakuten ecosystem in a qualitative manner. I would like the investors have deep understanding on our ecosystem.

In Japan, I think the ecosystem is created by Rakuten Group. Basically, the conglomerate discount, like the 1 + 1 due to various reasons is less than 2.

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 2. It will be expanding.

In particular, recently, because of AI or agentic AI advance, what would happen with that? In various the stages, Rakuten ecosystem, so-called we do have growth and defense and offense and defense, we are able to achieve both sides.

The foundation for this is one single brand name. The common ID we do have and common points club point program.

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 and including Rakuten Mobile, they are making really harder efforts.

We do have more than 70 services, and in all of the group companies, we do have a common culture among the group companies and also the users very loyal to our services. How to increase the number of users and how can we increase the number of cross-use, and then how to improve the LTV or the lifetime value?

Lifetime value of the customer, how can we improve this? Then among that, looking at the overall CAC or customer acquisition cost, how can we lower this CAC?

Then how can we bring that to the higher LTV and acquire new users to our ecosystem, and how to upsell them to other services, that is a big point of this ecosystem. Then over the past 5 years from 2020 to 2025, so-called internet services such as EC or the travel, and from those services new users joined, that is about 19.7 million.

New customers from FinTech, Rakuten Point Card, credit card, and the bank and securities, and the customers moved from there, new users, that is 16.1 million, and through the mobile, 2.9 million. 38.71 million people who came into the ecosystem are using 4.6 times the number of services.

Each of the services are organically connected. That's what is represented here.

Now, 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 5.4 times revenue, they are generating 5.4 times revenue of Rakuten Group, and users of three segments are generating 13.5 times 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, and then 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, and then, 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 this segments came from the Rakuten channels, Rakuten ecosystem.

There are many functions that we can utilize, and that is currently working very well. Now, AI is advancing, and what will happen to all these services, that is the question, but we have rich data on our hand.

Not only online data, we have offline data as well. Globally speaking, we have rare, 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 cost through the use of AI, and 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.

Now I'll move on to the segment results by each segment. Shopping, travel, like Internet Service Segment, and the revenue was 317.6 billion yen.

Not only from Ichiba and Travel, Kobo and Viber, contents businesses are performing pretty well to grow. Non-GAAP OI, 21.2 billion yen, comparing to the year before, plus 65.6%.

Then each KPI, and first of all, domestic EC GMS, that is 1.5 trillion yen, which is 4.8% YoY growth. Then Travel, plus 16.4% increase YoY.

Investment business IRR and is quite performing well. Then International BU revenue and 459 million US dollar, about 7% growth.

This time, what we have to mention is AI-led advertisement business has been performing pretty well. The 61.9 billion yen in Q1 and 13% grow YoY.

Then let me look into each business in detail. Domestic EC.

As mentioned before, GMS, 4.8% YoY growth, and revenue plus 4.0%, and OI plus 29.2% growth. It's about the 31 billion yen we achieved.

The next is Travel business. It's really growing today, and Travel business, the GTV on YoY basis, plus 16.4%, and particularly inbound demand, which is the 69.7% growth.

Even for the domestic travel, there is a growth of plus 8.1%. We have added the Rakuten AI capability here, which will help the searching hotel much easier, and also the real concierge.

Just like 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 the increase the revenue, and that is what we are doing really hard. Then about the 2.7 billion yen profitability improvement 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 investment businesses.

It's still in the middle way. The next is International BU.

Rakuten Viber, YoY basis, there is a big jump from the YoY basis, and also the streaming service, Viki, and then revenue has been steadily increasing. Unfortunately, well, or 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 FY2026, $7.1 million USD, and this is the shopping. We do have a high season in Q4 for revenue.

The next is ad business revenue, which is growing largely. The Q1 revenue was 61.9 billion yen, and so the 13% YoY growth, it's been accelerated.

Then using the AI for various advertisement services, for example, Rakuten Ichiba's for advertisement. Once you decide the budget, then automatically we will place the optimized advertisement.

With that, GMS at Ichiba will be growing, not only that, but also for the merchant revenue had improved. Taking the power of AI and taking advantage of Rakuten data has a great potential, a possibility.

Then, Rakuten advertisement and the common challenges in advertisement businesses, what are the difference between the two? Our targeting or the AI use the actual data or actual purchase data.

On the other hand, other company, they use behavioral data, for example, search and view. Then we do have a common ID, we can have accurate analysis of the results.

On the other hand, the common challenges, they are using the cookie, it is difficult to use the cookie, there is restrictions, 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, data is one thing, and also the advertisement placement, webpage or application, we do have rich asset of that.

The AI would be growing our advertisement business in Rakuten. Next is the FinTech segment.

Revenue was up 73.1% to 375.3 billion yen. All the services are growing steadily, especially Rakuten Bank and Rakuten Card.

They have increased revenue steadily, and also cost is controlled. The non-GAAP operating income was 58.5 billion yen, up 33.8% year-on-year.

These are the major KPIs. Rakuten Card shopping GTV was up by 18.5% to 6.8 trillion yen, and the number of Rakuten Bank accounts was up 7.3% to 18.07 million, almost 20 million.

Rakuten Bank deposit balance is 12.9 trillion, up by 12.9%. There is severe competition, but it was 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, 50.3 trillion, up by about 40% year-on-year.

Now, on Rakuten Card, first, the so-called interest rate has been increasing, how can we grow this business, was the question, but 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 16.8 billion yen.

Now, on payment, it is also growing. The revenue was up 12% to 27.3 billion, and non-GAAP OI was 2.1 trillion yen, up 14.4% year-on-year.

Now, on Rakuten Bank, the bank side already made an announcement, but the ordinary income was up 38.4% to 255.5 billion, ordinary profit was up 44.1% to 103 billion, and 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 50.3 billion, up 43.7% year-on-year, and operating income versus the previous year up by 92.5%, almost doubled, to 14.6 billion yen.

Now, 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 1.7 billion yen, it's been trending steadily. Especially, Rakuten General 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. Now, 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. 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 by ourselves.

In terms of the cross-use, we can accelerate that. Especially, we can consolidate and integrate the applications, and we can do that more easily with this reorganization to achieve SuperApp.

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.

Last from myself, talking about the mobile segment, and it has been progressing smoothly, and both the revenue and OI. The revenue, 18.5% YoY increase, which is 131.2 billion yen, and Non-GAAP OI, 13.3 billion YoY improvement, and -38 billion yen.

EBITDA, 1 billion yen. Then the pre-marketing cash flow, the so-called new customers or new stores, excluding costs related to that, it's already reached 28.7 billion yen.

Through a year basis, it's beyond the 100 billion yen. The premium marketing cash PMCF growing by 85.7%.

Major KPI, Rakuten Mobile, on the YoY basis, 10.36 million subscribers, increasing 1.74 million. Then 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 the Rakuten Symphony, number of customers are increasing and number of partners are increasing.

This has been progressing smoothly. Let me go into detail about Rakuten Mobile, and the revenue, it's growing by 23.9% YoY, and then recorded 108 billion yen.

Then Non-GAAP OI, and then the improvement of 12.7 billion yen. Particularly, we are still at the phase of increasing the customer basis, we are still in the growing phase.

Excluding those growth investments, we already achieved the 28.7 billion yen. EBITDA excluding the property tax, and it's 6.6 billion yen.

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, compared on a quarter-to-quarter basis, it was down from 1.99 to 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, and so they are leaving the carriers quickly. Those users with more than 5 lines are now charged with our fee, and we are also strengthening the rule to verify the identification, so that succeeded, and we were able to curb the short-term users as a result.

That is the 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.

Also Rakuten Mobile is the most considered mobile service for switching with 23.7%. We are ranked at the number 1.

ARPU is also about to go up. On the other hand, the base station construction, it is also accelerated, 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 million US dollars, 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-san 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 36.3 billion yen.

After deducting amortization of intangible assets, share-based compensation, and one-off items, the IFRS operating income was 30.4 billion yen. We made a very strong start toward the goal of significantly increasing profit in fiscal year 2026.

For this first quarter, and the profit before tax is making a profit. This is a big turning point, and that is our understanding.

For this year, continuously we will revisit our business portfolio, and there is a possibility of revisiting business portfolio, but we are lowering the 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. Then the most important thing, which is one of the financial KPI, for the net debt to EBITDA of our non-FinTech businesses, we are targeting a reduction to below 5x by 2027.

Then 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, 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.

Then for the target at the end of fiscal year 2026, we have set a slightly conservative goal of around 6x, but our commitment to improving profitability and reducing interest-bearing debt remains unchanged. Then we are also making steady progress on funding for bond redemptions.

For this year, senior bond redemptions are planned to be covered by cash on hand. The last month, April, we had the first call date in April, the US dollar-denominated perpetual subordinated bonds, and have been fully redeemed early using proceeds from the domestic perpetual subordinated bonds issued in October last year.

For the perspective of proactive maturity management, we have already begun 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 bond issued in previous years and 5-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 Chief AI Officer Ting-san would be explaining.

Thank you, Kaga-san. 皆様、こんにちは。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, while leveraging our differentiated advantage, our ubiquitous channel, reaching 10 million online and offline touchpoints, and our connected ecosystem with 46 million monthly active users in Japan. That connected ecosystem make it much easier for user to discover new services, reducing customer acquisition cost, and 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 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 touchpoint we have, we can engage better with our users. Whether it is a search, recommendation, advertising, customer service, AI can better understand 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 users to understand our points and campaigns more, because AI can guide them throughout the process. For example, in the shopping marathon, users 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 users 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 the 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 depth of knowledge we have in each domain. By delivering specialized services, it'll be difficult for other general-purpose agent to match.

In the AI era, data alone is not enough a moat 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 additional economic and emotional value we can deliver through the Rakuten ecosystem that keep our user coming back. As consumer increasingly shift from 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 and/or having a dialogue with the users.

It can plan and execute, then 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 upper-funnel opportunity, establishing Rakuten AI as the go-to destination for general inquiries.

From architectural 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 on 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, 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 dataset, and optimize for domain-specific task. Today, we have a portfolio of models from mini models to super model with almost 700 billion parameters, and 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 Optimism last year, we have continued our execution momentum. Today, we have 11 AI agents available.

Particularly in our last earning presentation, we talked about Rakuten Ichiba. Today, I want to briefly touch on Rakuten Travel.

As Mickey mentioned earlier, Rakuten Travel increased the gross transaction value 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 agents are already live across 11 services, and 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 results presentation. Thank you very much.