Slide 1: LY Corporation Earnings FY2025 Full Year & Q4 Appendix
LY Corporation Earnings FY2025 Full Year & Q4 Appendix May 8, 2026 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)…………………………….……...……….…..........26 • Change in Adjusted Net Income…………....….………...........................5 • Key Services and Produ
Slide 4: Financial Results – Consolidated
Table of Contents 1 Financial Results – Consolidated 2 Financial Results – by Segment 3 Non-Financial Information
Slide 5: Consolidated Change in Operating Income
Consolidated Change in Operating Income (JPY B) (JPY B) YoY +8.3% FY2024 FY2025 YoY YoY +20.3% Revenue 1,442.1 1,634.0 +191.8 Increase in revenue Increase in COGS 170.1 219.9 +49.7 +191.8 SG&A +94.3 SG&A 1,016.7 1,111.0 +94.3 +49.7 Increase in 358.9 COGS 341.3 Other income and 315.0 43.0 55.9 +12.8
Slide 6: Consolidated Change in Adjusted Net Income
Consolidated Change in Adjusted Net Income1 (JPY B) PPA amortization Increase in adjusted EBITDA2 Other non- expense, operating income non-recurring (YoY +9.3%) +25.8 and expenses losses/gains 198.9 -3.3 -7.1 182.0 +16.5 +2.1 +15.9 Increase in D&A Improvement in equity Income tax in losses of expens
Slide 7: Consolidated Change in Adjusted EPS
Consolidated Change in Adjusted EPS1 (JPY) PPA amortization Increase in adjusted EBITDA2 Other non- expense, +7.3 operating income non-recurring (YoY +15.3%) and expenses losses/gains -0.6 -0.7 28.7 24.9 +3.6 +0.2 +1.2 Increase in D&A Improvement in equity Income tax expense, in losses of non-contro
Slide 8: Equity in Profit/Losses of Associates and Joint Ventures
Consolidated Equity in Profit/Losses of Associates and Joint Ventures Loss on equity method investments is steadily decreasing Equity in Profit/Losses of Associates and Joint Ventures Key Equity Method Equity Based in Business Affiliates Ratio1 (JPY B) Contents Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 0.1 WEBT
Slide 9: Fair Market Value of Investment Assets
Consolidated Fair Market Value of Investment Assets1 (JPY B) Name of Company Fair Market Value Equity Ratio PayPay 712.6 31.0% ZOZO 511.4 51.8% ASKUL 46.8 46.9% Kurashiru 21.8 54.5% Demae-can 5.4 37.2% WEBTOON Entertainment 45.4 23.3% LINE Pay Taiwan 60.4 58.1% Total 1,404.0 - 1. As of March 31, 202
Slide 10: Consolidation Impact of Subsidiaries (PPA)
Consolidated Consolidation Impact of Subsidiaries (PPA) ZOZO PayPay Annual Annual Amortization Amortization Amount Amortization Amount Amortization Item Period Item Period (JPY B) Amount (JPY B) Amount (Straight Line) (Straight Line) (JPY B) (JPY B) PPA 502.1 13.2 - PPA 51.3 5.1 - Customer base 18-2
Slide 11: Financial Indicators: CAPEX and Net Cash Flow
Consolidated Financial Indicators CAPEX1 Net Cash Flow (Excluding Financial Business2/Financial Business)1 (JPY B) (JPY B) 64.5 Net Cash Flow Net Cash Flow (Excluding Financial Business) (Financial Business) 24.2 Consolidated dividend -67.0 Changes in debts, etc. -148.4 42.1 42.4 Operating3 Investin
Slide 12: Financial Indicators: Interest-Bearing Debt and Net Leverage Ratio
Consolidated Financial Indicators Interest-Bearing Debt & Net Interest-Bearing Debt1 Net Leverage Ratio3 (Excluding financial business2) (Excluding financial business2) (JPY B) (JPY B) 1,371.4 1,324.0 1,328.9 1,317.5 Net leverage ratio: maintain 3X or less 1,256.0 178.7 185.6 179.2 191.1 182.0 731.9
Slide 13: Consolidated Capital Allocation
Consolidated Capital Allocation FY2026-2028/Excluding Financial Business Cost of Equity (JPY B) 1,160.0 High Carryovers 100.0 CAPEX Approx. 30% Cost of Equity (last 12 months) 4.1 to 5.1% Operating CF Shareholder Approx. 40% 1,060.0 returns Predictability Aim for ROE 8% or more in FY2030, balancing
Slide 14: Key One-Time Gains/Losses (FY2025 Q1 – FY2025 Q4)
Consolidated Key One-Time Gains/Losses (FY2025 Q1 – FY2025 Q4) Impact on P/L Amount Period One-time Gains/Losses Outline Item Operating Adjusted Adjusted (JPY B) Income EBITDA EPS Impairment loss on investments in FY2025 Other non-operating associates and joint ventures Impairment loss related to LI
Slide 15: 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 recognized due to the deconsolidation of IPX Commerce segment Gain on
Slide 16: Consolidated – Total Advertising Revenue
Consolidated Consolidated – Total Advertising Revenue Consolidated – Total Advertising Revenue¹ Consolidated – Total Advertising Revenue % YoY Growth (JPY B) 657.6 +27.6% 638.0 606.4 64.9 81.1 Commerce1 +25.0% Commerce1 50.8 +5.2% +3.7% 555.5 573.1 576.5 Media +3.1% Consolidated +2.5% +3.2% +0.6% Me
Slide 17: Consolidated – E-Commerce Transaction Value
Consolidated Consolidated – E-Commerce Transaction Value Consolidated – E-Commerce Transaction Value1 Consolidated – E-Commerce Transaction Value % YoY Growth1 (JPY B) 4,672.9 4,362.0 +14.0% Domestic Reuse 1,866.0 Domestic Shopping 1,750.6 +7.1% +7.1% Consolidated +6.6% Domestic Shopping +5.1% +5.5%
Slide 18: Security Measures
Consolidated Security Measures Security countermeasure expenses were in line with planned level Security Countermeasure Expenses (JPY B) FY2024 FY2025 Amount Recording Segment Item Amount Q1 Approx. 3.0 Strategic1 Approx. 2.5 Q2 Approx. 4.0 Approx. 2.5 Outsourcing costs/ License fees, etc. Q3 Approx
Slide 19: Financial Results – by Segment
Table of Contents 1 Financial Results – Consolidated 2 Financial Results – by Segment 3 Non-Financial Information
Slide 20: I. Media Business
I. Media Business
Slide 21: Media Business Performance (P/L)
Media Business Performance (P/L) (JPY Million) FY2024 Q41,2,3 FY2025 Q41,2,3 YoY Revenue 187,990 190,368 +1.3% Advertising Revenue 148,522 147,546 -0.7% Search advertising 50,839 45,084 -11.3% Account advertising 33,094 37,737 +14.0% Display advertising3 64,588 64,725 +0.2% Other (Vertical/entertain
Slide 22: Media Business Change in Search Advertising
Media Business Change in Search Advertising Search Advertising Revenue/ %YoY Growth Factors Behind Change in Search Advertising Revenue (JPY B) (JPY B) -1.6% 50.8 Other -7.7% -9.5% -11.3% +1.2 45.0 -13.2% % Growth -5.4 50.8 -1.5 Slowdown in Partners’ 5.9 46.1 45.0 advertising demand 44.6 websites 43
Slide 23: Media Business Key Services and Products
Media Business Key Services and Products Item Breakdown Search advertising LY Ads Search Ads Account advertising LINE Official Account, LINE Promotion Sticker, LINE de Obo (Participate with LINE), LINE Flyer, etc. Display advertising - LY Ads Display Ads (Auction), LINE VOOM, LINE NEWS, Chat List, P
Slide 24: Key Advertising Products (LINE)
Media Business Key Advertising Products (LINE) Item Fee Calculation Placement Pages/Product Outline Type of Advertiser Account ads - 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 Fre
Slide 25: Key Advertising Products (Yahoo! JAPAN)
Media Business Key Advertising Products (Yahoo! JAPAN) Item Fee Calculation Placement Pages Type of Advertiser Search advertising Pay per click/pay per action Search results pages Large enterprises/SMBs Display advertising - Programmatic - Top page LY Ads Pay per click Interior pages of service webs
Slide 26: II. Commerce Business
II. Commerce Business
Slide 27: Commerce Business Performance (P/L)
Commerce Business Performance (P/L) (JPY Million) FY2024 Q41, 2 FY2025 Q41, 2 YoY Revenue 212,138 230,355 +8.6% LY Corporation 40,970 72,023 +75.8% Shopping business 19,689 21,208 +7.7% Reuse business 10,747 17,083 +59.0% Services e-commerce 10,068 33,376 +231.5% Other 465 355 -23.7% ZOZO, ASKUL 171
Slide 28: 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, LINE SHOPPING1, Shopping business Yahoo! JAPAN Quick Mart2, overseas e-commerce (LINE SHOPPING (Taiwan, Thailand), GIFTSHOP, MyShop, etc.) Reuse business Ya
Slide 29: 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 SHOPPING1, LINE FRIENDS, Yahoo! JAPAN Quick Mart2
Slide 30: III. Strategic Business
III. Strategic Business
Slide 31: Strategic Business Performance (P/L)
Strategic Business Performance (P/L) (JPY Million) FY2024 Q41, 2 FY2025 Q41, 2 YoY Revenue 89,673 121,014 +34.9% Fintech 89,649 121,014 +35.0% PayPay (Consolidated)3 64,536 100,701 +56.0% PayPay Bank4 13,828 - N/A Other fintech (LINE Fintech, etc.) 11,283 20,312 +80.0% Other Strategic Business 24 -
Slide 32: Strategic Business Financial Subsidiaries B/S
Strategic Business Financial Subsidiaries B/S PayPay (Consolidated)1 Other Fintech Business (JPY B) FY2025 Q3 FY2025 Q4 Change FY2025 Q3 FY2025 Q4 Change Assets 5,172.2 5,176.0 +3.9 882.4 911.3 +28.8 Cash and deposits 506.2 363.1 -143.1 113.0 116.4 +3.4 Other assets 4,665.9 4,812.9 +147.0 769.4 794.
Slide 33: 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 54.6%3 PayPay Corporation 100% 100% 51.0% 100% 75.5% 75.2% PayPay Insurance LINE Securitie
Slide 34: Strategic Business Key Services and Products
Strategic Business Key Services and Products Item Breakdown Fintech ― PayPay PayPay, PayPay Card, Credit Engine, PayPay Bank, PayPay Securities (Consolidated)1 PayPay Asset Management2, PayPay Insurance, LINE Pay3, LINE Bank Taiwan4, LINE Score, Other fintech LINE Pocket Money, LINE BITMAX5, LINE FX
Slide 35: IV. International Business
IV. International Business
Slide 36: 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 37: Non-Financial Information
Table of Contents 1 Financial Results – Consolidated 2 Financial Results – by Segment 3 Non-Financial Information
Slide 38: 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 39: 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 40: 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 41: WOW Our Users!
LY Corporation WOW Our Users!