Ly Corporation · TSE:4689
Ly — Q1 FY2025 Earnings Presentation
39 slides from Ly's earnings presentation, Aug 4, 2025
Slide 1: LY Corporation Earnings FY2025 Q1 Appendix
LY Corporation Earnings FY2025 Q1 Appendix August 4, 2025 Security Code: 4689
Slide 2: Table of Contents
Table of Contents 1 Financial Results - Consolidated 2 Financial Results - by Segment 3 Non-Financial Information
Slide 3: Table of Contents (Details)
Table of Contents (Details) 1. Financial Results - Consolidated II. Commerce Business • Change in Operating Income…….…………….................…………4 • Performance (P/L)…………………………….……...….….........24 • Change in Adjusted Net Income…………....….………...................5 • Key Services and Products . . . ……………
Slide 4: Financial Results - Consolidated
Table of Contents 1 Financial Results - Consolidated 2 Financial Results - by Segment 3 Non-Financial Information
Slide 5: Change in Operating Income
Consolidated Change in Operating Income (JPY B) (JPY B) FY2024 FY2025 Increase in YoY Increase in revenue Q1 Q1 SG&A +26.5 +9.9 Revenue 463.0 489.6 +26.5 +2.3 One-time factor1 Increase in One-time 43.0 106.8 factor1 COGS 132.0 134.3 +2.3 COGS 95.0 17.0 (YoY +22.4%) -25.9 SG&A 267.3 277.2 +9.9 78.0 I
Slide 6: Change in Adjusted Net Income
Consolidated Change in Adjusted Net Income1 (JPY B) Decrease in equity in Increase in adjusted losses of associates tax expense EBITDA2 and joint ventures and other +4.1 +1.1 (YoY +1.7%) +1.6 42.3 43.1 +1.0 -0.8 +2.6 -1.5 Increase in D&A Other Increase in PPA amortization non-operating non-controlli
Slide 7: Redefined Adjusted EPS
Consolidated Redefined Adjusted EPS Redefined adjusted EPS to appropriately reflect underlying earnings by removing impact of past M&A transactions Old Definition New Definition (From FY2024 Q4) Net income attributable to owners of the parent Net income attributable to owners of the parent ± ± EBITD
Slide 8: Redefined Adjusted EPS (Cont'd)
Consolidated Redefined Adjusted EPS (Cont’d) Redefined adjusted EPS to appropriately reflect underlying earnings by removing impact of past M&A transactions Comparison of adjusted EPS between old and new definitions (JPY) FY2021 FY2022 FY2023 FY2024 Old definition 10.8 5.4 18.9 19.6 New definition
Slide 9: Change in Adjusted EPS
Consolidated Change in Adjusted EPS1 (JPY) Decrease in equity in Increase in adjusted EBITDA2 losses of associates and joint ventures +1.4 +0.1 (YoY +7.1%) 6.1 +0.4 5.6 -0.2 Increase in D&A +0.4 -0.0 -0.1 Other non-operating Increase in Income tax PPA amortization income/expenses non-controlling exp
Slide 10: Equity in Losses of Associates and Joint Ventures
Consolidated Equity in Losses of Associates and Joint Ventures Aim for profitability of equity-method affiliates by FY2025 Key Equity Method Equity Based in Business Equity in Losses of Associates and Joint Ventures Affiliates Ratio1 Contents (JPY B) WEBTOON • Operation of e-manga Q1'24 Q2'24 Q3'24
Slide 11: Fair Market Value of Investment Assets
Consolidated Fair Market Value of Investment Assets1 (JPY B) Name of Company Fair Market Value Equity Ratio ZOZO 719.0 51.8% ASKUL 68.9 47.3% dely 40.2 56.0% ValueCommerce 7.5 28.2% Demae-can 10.2 37.1% WEBTOON Entertainment 40.9 24.1% LINE Pay Taiwan 142.6 58.1% Total 1,029.7 - 1. As of June 30, 20
Slide 12: Consolidation Impact of Subsidiaries (PPA)
Consolidated Consolidation Impact 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 322.
Slide 13: Financial Indicators
Consolidated Financial Indicators 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 10.8 Consolidated dividend - 57.7 Changes in debts, etc. -64.6 42.1 42.4 37.1 Oper
Slide 14: Financial Indicators (Cont'd)
Consolidated Financial Indicators (Cont’d) Interest-Bearing Debt & Net Interest-Bearing Debt1 Net Leverage Ratio3 (Excluding financial business2) (Excluding financial business2) (JPY B) (JPY B) 1,343.5 1,328.2 1,324.0 1,305.9 1,000.0 1,256.0 Net leverage ratio: maintain 3X or less 198.2 3.00 198.7 1
Slide 15: Key One-Time Gains/Losses (FY2025 Q1)
Consolidated Key One-Time Gains/Losses (FY2025 Q1) Impact on P/L Amount Period One-time Gains/Losses Outline Item (JPY B) Operating Adjusted Adjusted Income EBITDA EPS Gain on remeasurement relating to Gain recognized due to the capital increase in LINE Bank Strategic segment business combinations T
Slide 16: Key One-Time Gains/Losses (FY2024 Q1 – FY2024 Q4)
Consolidated Key One-Time Gains/Losses (FY2024 Q1 – FY2024 Q4) Impact on P/L Amount Period One-time Gains/Losses Outline Item (JPY B) Operating Adjusted Adjusted Income EBITDA EPS FY2024 None Q4 FY2024 None Q3 FY2024 None Q2 Gain on loss of control of Gain recognized due to the deconsolidation of IP
Slide 17: Security Measures
Consolidated Security Measures Security measures expenses on target with planned budget Security Countermeasure Expenses (JPY B) FY2024 FY2025 Amount Recording Segment Item Amount Q1 Approx. 3.0 Strategic1 Approx. JPY2.5 B Q2 Approx. 4.0 Outsourcing costs/ License fees, etc. Approx. JPY2.5 B Q3 Appr
Slide 18: Table of Contents
Table of Contents 1 Financial Results - Consolidated 2 Financial Results - by Segment 3 Non-Financial Information
Slide 19: I. Media Business
I. Media Business
Slide 20: Media Business Performance (P/L)
Media Business Performance (P/L) (JPY Million) FY2024 Q11,2 FY2025 Q11,2 YoY Revenue 176,209 177,273 +0.6% Advertising Revenue 138,237 140,180 +1.4% Search advertising 49,985 46,152 -7.7% Account advertising 28,681 33,939 +18.3% Display advertising3 59,570 60,088 +0.9% Other (Vertical/entertainment/
Slide 21: Media Business Key Services and Products
Media Business Key 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 VOOM,
Slide 22: Key Advertising Products (LINE Ads)
Media Business Key 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 Large enterprises/SMBs/Local LINE Official Account Pay-as-you-go the account governments Fixed fee
Slide 23: Key Advertising Products (Yahoo! JAPAN Ads)
Media Business Key Advertising Products (Yahoo! JAPAN Ads) Item Fee Calculation Placement Pages Type of Advertiser Search advertising Pay per click/pay per action Search results pages Large enterprises/SMBs Display advertising ー Programmatic ー Top page Yahoo! JAPAN Ads Pay per click Interior pages o
Slide 24: II. Commerce Business
II. Commerce Business
Slide 25: Commerce Business Performance (P/L)
Commerce Business Performance (P/L) (JPY Million) FY2024 Q11,2 FY2025 Q11,2 YoY Revenue 208,712 215,990 +3.5% LY Corporation 39,231 41,189 +5.0% Shopping business 19,415 18,998 -2.1% Reuse business 10,873 12,395 +14.0% Services e-commerce 8,549 9,406 +10.0% Other 392 388 -1.1% ZOZO, ASKUL3 169,480 1
Slide 26: Commerce Business Key Services and Products
Commerce Business Key Services and Products Item Breakdown LY Corporation ー Yahoo! JAPAN Shopping, LINE Brand Catalog, LINE FRIENDS, LINE GIFT, Yahoo! JAPAN Quick Mart1, Shopping business overseas e-commerce (LINE SHOPPING (Taiwan, Thailand), GIFTSHOP, MyShop, etc.) Reuse business Yahoo! JAPAN Aucti
Slide 27: KPI - Definition of E-Commerce Transaction Value
Commerce Business KPI - Definition of E-Commerce Transaction Value Item Key Services/Products E-commerce transaction value ー Domestic merchandise ー Yahoo! JAPAN Shopping, ZOZOTOWN, LOHACO, Charm, LINE Brand Catalog, LINE GIFT, Shopping business LINE FRIENDS, Yahoo! JAPAN Quick Mart1 Reuse business Y
Slide 28: III. Strategic Business
III. Strategic Business
Slide 29: Strategic Business Performance (P/L)
Strategic Business Performance (P/L) (JPY Million) FY2024 Q11 FY2025 Q11 YoY Revenue 79,143 96,600 +22.1% Fintech 79,093 96,600 +22.1% PayPay (Consolidated)2 56,925 84,662 +48.7% PayPay Bank3 11,793 - N/A Other fintech (LINE Fintech, etc.) 10,374 11,937 +15.1% Other Strategic Business 50 - N/A Cost
Slide 30: Financial Subsidiaries B/S
Strategic Business Financial Subsidiaries B/S PayPay (Consolidated) Other fintech business (JPY B) FY2024 Q4 FY2025 Q1 Change FY2024 Q4 FY2025 Q1 Change Assets 4,042.6 4,414.6 +372.1 433.9 976.0 +542.1 Cash and deposits 369.8 520.4 +150.6 88.6 100.7 +12.1 Other assets 3,672.8 3,894.3 +221.5 345.3 87
Slide 31: Capital Structure of Domestic Financial Businesses
Strategic Business Capital Structure of Domestic Financial Businesses1 Consolidated Subsidiary Intermediate Holding Company LY Corporation2 100% Z Intermediate Holdings Corporation 50.0% B Holdings Corporation 50.1% 51.0% 57.9%4 PayPay Asset LINE Credit Corporation PayPay Corporation Management Corp
Slide 32: Strategic Business Key Services and Products
Strategic Business Key Services and Products Item Breakdown Fintech ― PayPay PayPay, PayPay Card, Credit Engine2, PayPay Bank, PayPay Securities (Consolidated)1 PayPay Asset Management3, PayPay Insurance, LINE Pay4, LINE Score, LINE Pocket Money, Other fintech LINE BITMAX, LINE FX, DOSI5, etc. 1. Pa
Slide 33: IV. International Business
IV. International Business
Slide 34: International Business Development
International Business International Business Development Strong presence across Asia, particularly in Taiwan and Thailand Majority of revenue generated from advertising, stickers, and game businesses on messenger platform International Business Revenue7 Taiwan 22 mil MAU1,3 (JPY B) (Population: 23.
Slide 35: Table of Contents
Table of Contents 1 Financial Results - Consolidated 2 Financial Results - by Segment 3 Non-Financial Information
Slide 36: Board of Directors and Capital Structure
Non-Financial Information Board of Directors and Capital Structure Independent outside directors comprising 66.6% of board, ensuring effective governance through separation of roles. Female directors represent 33.3% of board. Parent company is A Holdings Corporation, a joint venture between SoftBank
Slide 37: Remuneration Policy and Executive Remuneration Plan
Non-Financial Information Remuneration Policy and Executive Remuneration Plan Executive remuneration plan designed for medium/long-term rewards by setting high stock-based incentives Foster a sense of shared interest with shareholders, intended to enhance corporate value through sustainable growth R
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: LY Corporation
LY Corporation Create an amazing life platform that brings WOW! to our users.