Ly Corporation · TSE:4689
Ly — Q3 FY2024 Earnings Presentation
39 slides from Ly's earnings presentation, Feb 6, 2025
Slide 1: LY Corporation Business Results FY2024 Q3 Appendix
LY Corporation Business Results FY2024 Q3 Appendix February 6, 2025 Security Code: 4689
Slide 2: Table of Contents
Table of Contents 1 Entire Group – Consolidated Business Results 2 Business Results – By Segment 3 Non-Financial Information
Slide 3: Table of Contents (Details)
Table of Contents (Details) 1. Entire Group – Consolidated Business Results II. Commerce Business • Factors of Change in Operating Income…….………………………4 • Business Results (P/L)………………………………...….….......23 • Factors of Change in Adjusted Net Income…………....….………..5 • Major Services and Products ……………….…
Slide 4: Entire Group – Consolidated Business Results
Table of Contents 1 Entire Group – Consolidated Business Results 2 Business Results – By Segment 3 Non-Financial Information
Slide 5: Factors of Change in Operating Income
Entire Group Factors of Change in Operating Income (JPY B) (JPY B) FY2023 FY2024 YoY Decrease Q3 Q3 Increase in revenue in SG&A (YoY +43.7%) +28.4 +0.8 82.1 Revenue 475.0 503.4 +28.4 -4.2 Increase in Cost of sales 130.8 135.1 +4.2 cost of sales 58.1 57.1 SG&A 286.9 286.1 -0.8 -1.0 One-time factor* O
Slide 6: Factors of Change in Adjusted Net Income
Entire Group Factors of Change in Adjusted Net Income1 (JPY B) (JPY B) FY23 FY24 YoY Increase in Q3 Q3 non-controlling Other non-operating interests Operating income 58.1 82.1 +23.9 income and expenses Adjusted -10.6 EBITDA2 +6.5 EBITDA adjustment items 11.7 7.1 -4.6 +19.2 +3.7 Depreciation and 39.9
Slide 7: Factors of Change in Adjusted EPS
Entire Group Factors of Change in Adjusted EPS1 (JPY) Increase in Other non-operating non-controlling income and interests Adjusted EBITDA2 expenses -1.51 +3.13 +0.86 +0.49 D&A Decrease in (YoY +29.3%) equity in losses 6.353 (-0.27) of associates and joint -1.53 4.91 ventures Income tax Operating in
Slide 8: Equity in Losses of Associates and Joint Ventures
Entire Group Equity in Losses of Associates and Joint Ventures • Aim to turn equity in losses of associates and joint ventures profitable in around FY2025. Major Equity- Equity Based in Business Equity in Losses of Associates and Joint Ventures Method Affiliates Ratio1 Content (JPY B) WEBTOON • Oper
Slide 9: Impact from Consolidation of Subsidiaries (PPA)
Entire Group Impact from Consolidation of Subsidiaries (PPA) ZOZO PayPay Annual Amortization Annual Amortization Amount Amortization Period Amount Amortization Period Item Amount Item Amount (JPY B) (Straight Line) (JPY B) (Straight Line) (JPY B) (JPY B) PPA 502.1 13.2 - PPA 51.3 5.1 - Customer base
Slide 10: Financial Index
Entire Group Financial Index CAPEX1 Net Cash Flow (Excluding Financial Business2/Financial Business)1 (JPY B) (JPY B) 63.9 Net Cash Flow Net Cash Flow (Excluding Financial Business) (Financial Business) 57.0 15.5 Consolidated dividend - 57.5 10.8 Changes in debts, etc. -172.5 45.2 7.7 Operating Oper
Slide 11: Financial Index: Interest-Bearing Debt and Net Leverage Ratio
Entire Group Financial Index Interest-Bearing Debt & Net Interest-Bearing Debt1 Net Leverage Ratio3 (Excluding financial business2) (Excluding financial business2) 1,000.0 (JPY B) (JPY B) 3.00 Net leverage ratio: maintain 3X or less 1,388.7 1,343.5 1,328.2 1,305.9 800.0 1,307.6 2.50 236.2 198.2 205.
Slide 12: Major One-Time Gains/Losses (FY2024 Q1 – FY2024 Q3)
Entire Group Major One-Time Gains/Losses (FY2024 Q1 – FY2024 Q3) Impact on P/L Period One-time Gains/Losses Outline Amount (JPY B) Item Operating Adjusted Adjusted Income EBITDA EPS FY2024 - - - - - - - Q3 FY2024 - - - - - - - Q2 Gain on loss of control of Gain recognized due to the deconsolidation
Slide 13: Major One-Time Gains/Losses (FY2023 Q1 – FY2023 Q4)
Entire Group Major One-Time Gains/Losses (FY2023 Q1 – FY2023 Q4) Impact on P/L Period One-time Gains/Losses Outline Amount (JPY B) Item Operating Adjusted Adjusted Income EBITDA EPS Compensation received for damage which was recognized as a Compensation received for result of the finalization of the
Slide 14: Security Measures
Entire Group Security Measures • Security measures are steadily being implemented. Cost of countermeasures is within the initial forecast. Security Countermeasure Expenses FY2024 Amount (JPY B) Recording Segment Item Q1 Approx. 3.0 Strategic1 Q2 Approx. 4.0 Business commissions/License fees, etc. Ad
Slide 15: Table of Contents
Table of Contents 1 Entire Group – Consolidated Business Results 2 Business Results – By Segment 3 Non-Financial Information
Slide 16: I. Media Business
I. Media Business
Slide 17: Media Business Business Results (P/L)
Media Business Business Results (P/L) (JPY Million) FY2023 Q31, 2, 3 FY2024 Q31, 2, 3 YoY Revenue 180,680 186,777 +3.4% Advertising Revenue 143,024 148,090 +3.5% Search advertising 48,362 49,348 +2.0% Account advertising 27,854 33,334 +19.7% Display advertising4 66,807 65,407 -2.1% Other (Vertical/e
Slide 18: Media Business Search Advertising
Media Business Search Advertising Search Advertising Revenue/YoY Growth Rate Factors Behind Change in Search Advertising Revenue (JPY B) (JPY B) +7.9% 48.7 +6.5% +4.2% 47.8 +2.0% +1.4% Growth Rate +0.2 of LY Corporation’s +0.5 Websites Partners’ LY Corporation’s Websites Websites 51.1 47.8 49.4 49.0
Slide 19: LYP Premium
Media Business LYP Premium Yahoo! JAPAN Premium/LYP Premium1 Membership Product Reinforcement Measures (Mil) 24.44 Use of Subprofile Premium Backup5 23.52 1.21 23.65 23.54 23.60 New 0.24 0.30 0.29 0.29 members2, 3 Launched in To be launched in January first half of 2025 2025 SoftBank members, 23.23
Slide 20: Media Business Major Services and Products
Media Business Major Services and Products Item Breakdown Search advertising Yahoo! JAPAN Ads “Search Ads” Account advertising LINE Official Account, LINE Promotion Sticker, LINE de Obo (Participate with LINE), LINE Flyer, etc. Display advertising ー Yahoo! JAPAN Ads “Display Ads (Auction),” LINE VOO
Slide 21: Major Advertising Products (LINE Ads)
Media Business Major Advertising Products (LINE Ads) Item Fee Calculation Placement Pages/Product Outline Type of Advertiser Account ads ー Fixed monthly cost Messages delivered to users who have friended Major corporations/SMBs/Local LINE Official Account Pay-as-you-go the account governments Fixed
Slide 22: Major Advertising Products (Yahoo! JAPAN Ads)
Media Business Major Advertising Products (Yahoo! JAPAN Ads) Item Fee Calculation Placement Pages Type of Advertiser Search advertising Pay per click/pay per action Search results pages Major corporations/SMBs Display advertising ー Programmatic ー Top page Yahoo! JAPAN Ads Pay per click Interior page
Slide 23: II. Commerce Business
II. Commerce Business
Slide 24: Commerce Business Business Results (P/L)
Commerce Business Business Results (P/L) (JPY Million) FY2023 Q31, 2, 3 FY2024 Q31, 2, 3 YoY Revenue 218,979 225,828 +3.1% LY Corporation 41,447 44,092 +6.4% Shopping business 22,994 22,380 -2.7% Reuse business 9,517 11,168 +17.3% Services e-commerce 8,646 10,058 +16.3% Other 288 484 +68.0% ZOZO, AS
Slide 25: Commerce Business Major Services and Products
Commerce Business Major Services and Products Item Breakdown LY Corporation ー Yahoo! JAPAN Shopping, LINE Brand Catalog1, LINE FRIENDS, LINE GIFT, Yahoo! JAPAN Quick Mart2, Shopping business overseas e-commerce (LINE SHOPPING (Taiwan, Thailand), GIFTSHOP, EZ STORE, QUICK EC, MyShop, etc.) Reuse busi
Slide 26: KPI - Definition of E-Commerce Transaction Value
Commerce Business KPI - Definition of E-Commerce Transaction Value Item Major Services/Products E-commerce transaction value ー Domestic merchandise ー Yahoo! JAPAN Shopping, ZOZOTOWN, LOHACO, Charm, LINE Brand Catalog1, LINE GIFT, LINE FRIENDS, Shopping business Yahoo! JAPAN Quick Mart2 Reuse busines
Slide 27: III. Strategic Business
III. Strategic Business
Slide 28: Strategic Business Business Results (P/L)
Strategic Business Business Results (P/L) (JPY Million) FY2023 Q31 FY2024 Q31 YoY Revenue 76,593 91,118 +19.0% Fintech 76,527 91,075 +19.0% PayPay (Consolidated)2 55,505 66,561 +19.9% PayPay Bank3 11,702 12,612 +7.8% Other fintech (LINE Fintech, etc.) 9,319 11,901 +27.7% Other Strategic Business 65
Slide 29: PayPay Corporation – Consolidated Business Results
Strategic Business PayPay Corporation – Consolidated Business Results Consolidated Revenue1/EBITDA2 (IFRSs) Consolidated Statement of Financial Position (IFRSs) (JPY B) (JPY B) 67.2 FY2024 Q2 FY2024 Q3 Difference 59.2 56.3 57.2 Assets 1,712.0 1,985.6 +273.5 55.6 Cash and deposits 336.8 355.7 +18.9 O
Slide 30: PayPay Bank Corporation – Business Results
Strategic Business PayPay Bank Corporation – Business Results Revenue/Operating Income (Non-Consolidated IFRS)1 Statement of Financial Position (JGAAP)1 (JPY B) (JPY B) 13.0 13.2 FY2024 Q2 FY2024 Q3 Difference 12.8 11.9 Assets 2,119.0 2,345.5 +226.4 11.6 Cash and cash equivalents 341.7 492.9 +151.2
Slide 31: Capital Structure of Domestic Financial Businesses
Strategic Business Capital Structure of Domestic Financial Businesses1 Consolidated Subsidiary Equity-Method Affiliate Intermediate Holding Company LY Corporation 100% 100% 100% Z Financial Z Intermediate LINE Pay Corporation3 Corporation2 Holdings Corporation 50.0% B Holdings Corporation 46.6% 50.1
Slide 32: Strategic Business Major Services and Products
Strategic Business Major Services and Products Item Breakdown Fintech ― PayPay PayPay, PayPay Card, Credit Engine Group (Consolidated) PayPay Bank ― PayPay Asset Management1, PayPay Insurance, LINE Pay2, LINE Score, LINE Pocket Money, Other fintech LINE BITMAX, LINE FX, DOSI, etc. Other Other 1. Pla
Slide 33: IV. International Business
IV. International Business
Slide 34: International Business Development
International Business International Business Development • Overwhelming reach and market share in Asian countries and regions, mainly Taiwan, Thailand, and Indonesia. • Generating revenue mainly from advertising, stickers, and game businesses based on messaging. International Business Revenue7 Taiw
Slide 35: Table of Contents
Table of Contents 1 Entire Group – Consolidated Business Results 2 Business Results – By Segment 3 Non-Financial Information
Slide 36: Board of Directors and Capital Structure
Non-Financial Information Board of Directors and Capital Structure • Approved at the 29th ordinary general meeting of the shareholders, independent outside directors now comprise 66.6% of the Board. • The parent company is A Holdings Corporation, a joint venture of SoftBank Corp. and NAVER Corporati
Slide 37: Remuneration Policy and Executive Remuneration Plan
Non-Financial Information Remuneration Policy and Executive Remuneration Plan • The new executive remuneration plan from FY2022 onwards puts more emphasis on stock-based remuneration as a medium- to long-term incentive. • Fostering a sense of shared interest (Same Boat) with shareholders, aiming to
Slide 38: Disclaimer
Disclaimer Statements made at the meeting or included in the documents that are not historical facts are forward-looking statements about the future performance of LY Corporation (Company) and its consolidated subsidiaries and affiliates. The Company cautions you that a number of important factors c
Slide 39: Create an amazing life platform that brings WOW! to our users.
Create an amazing life platform that brings WOW! to our users.