Z — Merger or Acquisition (November 2019)
36 slides from Z's merger presentation, Nov 18, 2019
Slide 1: Business Integration between Z Holdings Corporation and LINE Corporation
Business Integration between Z Holdings Corporation and LINE Corporation Z Holdings Corporation LINE Corporation President and Representative Director, CEO Representative Director, President and CEO Kentaro Kawabe Takeshi Idezawa
Slide 2: Before: Z Holdings and LINE
<Before> <Before> Z HOLDINGS
Slide 3: Before and After the integration
＜Before＞ ＜After＞ ＜Before＞ Listed on New TSE First Section
Slide 4: Business Integration on an Equal Footing
Business Integration on an Equal Footing ＜Before＞ ＜After＞ ＜Before＞ Listed on New TSE First Section
Slide 5: Improving Ourselves Through Friendly Rivalry
Improving Ourselves Through Friendly Rivalry Make our users’ lives convenient to a surprising (!) extent
Slide 6: Slide 6
Slide 7: To be the greatest One Team
To be the greatest One Team ©JRFU
Slide 8: Aim to become the AI TECH COMPANY
Aim to become the AI TECH COMPANY that leads the world from Japan/Asia
Slide 9: Why?
Why?
Slide 10: Strong sense of urgency and great ambition
Strong sense of urgency and great ambition
Slide 11: Global Tech Giants
Global Tech Giants North China America
Slide 12: Significant Gap in Scale
Significant Gap in Scale Chinese Chinese ZHD+LINE U.S. Co. A U.S. Co. B U.S. Co. C Co. A Co. B Market capitalization (billions of yen) 3,000 98,000 61,000 98,000 51,000 44,000 Operating income 160 2,900 2,700 1,400 900 1,600 (billions of yen) R&D expenses 20 2,400 1,100 3,200 600 400 (billions of ye
Slide 13: Technology can solve still more challenges in the Japanese society
Technology can solve still more challenges in the Japanese society Natural Workforce Productivity disasters and the list goes on...
Slide 14: Great Ambition
Great Ambition
Slide 15: Solve social issues and provide the best user experience in Japan
Solve social issues and provide the best user experience to people in Japan
Slide 16: Also provide the best user experience in Asia from Japan
Also provide the best user experience in Asia from Japan
Slide 17: Become the AI TECH COMPANY that leads the world from Japan/Asia
Become the AI TECH COMPANY that leads the world from Japan/Asia
Slide 18: Synergies through the Business Integration
Synergies through the Business Integration
Slide 19: Synergies: User Base
Synergies: User Base Monthly users Monthly users 67.43 mil. 82 mil. Business Clients (companies) Business Clients (companies) Over 3 mil. Apx. 3.5 mil. ※1：Nielsen 「TOPS OF 2018: DIGITAL IN JAPAN Top 10 Total numbers of digital users in Japan」 ※2：As of the end of September 2019 ※3：Sum of numbers of b
Slide 20: Global (LINE)
Global (LINE) 185 million Bank business O ve r 2 3 0 countries and regions 50 million Preparing in 4 key Monthly users users registered on LINE Pay Global countries
Slide 21: Synergies: Services
Synergies: Services Media/advertisement Contents Commerce/O2O Fintech/finance AI
Slide 22: Synergies: Group
Synergies: Group “ Strategy”
Slide 23: Synergies: Human Resources
Synergies: Human Resources Apx. 20,000 people
Slide 24: Synergies: Annual Investment
Synergies: Annual Investment Apx. 100 bil. yen
Slide 25: Strategic Investment Areas
Strategic Investment Areas Media/contents Fintech Advertisement Communication Commerce/O2O
Slide 26: Aggressive Medium- to Long-Term Investments in AI to Create New Value
Agrressive Medium- to Long-Term Investments in AI to Create New Value Education Media/contents Disaster Fintech prevention Urban design/ Smart city Workstyle Advertisement AI Communication Smart Mobility Commerce/O2O
Slide 27: Privacy Protection and Cybersecurity of the Companies
Privacy Protection and Cybersecurity of the Companies • Data created by users belongs to users • Data maintained based on Japanese laws and regulations • Data protected using sophisticated cybersecurity technologies
Slide 28: Become the AI TECH COMPANY that leads the world from Japan/Asia
Become the AI TECH COMPANY that leads the world from Japan/Asia
Slide 29: Management Structure
Management Structure
Slide 30: Structure After the Business Integration (scheduled)
Structure After the Business Integration (scheduled) Consolidated （Mobile） ＜BOD composition＞ 50% 50% Internal Directors：6 ‐From ZHD：3 JV ‐From LINE：3 General shareholders Independent outside directors：4 Listed on TSE First New Section
Slide 31: Management Structure of New Z Holdings After the Business Integration
Management Structure of New Z Holdings After the Business Integration (scheduled) President and Representative Director, Co-CEO Representative Director and Co-CEO Kentaro Kawabe Takeshi Idezawa
Slide 32: Timeline for the Business Integration (scheduled)
Timeline for the Business Integration (scheduled) End of 2019 to beginning of 2020 October 2020 Today (target) (target) Definitive Agreement Complete Business Executed MOU Execution of the January through Integration September 2020 Various applications, examination and other procedures
Slide 33: To be the greatest One Team
To be the greatest One Team that fills the world with surprises and excitement
Slide 34: Become the AI TECH COMPANY that leads the world from Japan/Asia
Become the AI TECH COMPANY that leads the world from Japan/Asia
Slide 35: Forward-Looking Statements
Forward-Looking Statements This document contains forward-looking statements with respect to Z Holdings’s and LINE’s current plans, estimates, strategies and beliefs, including, without limitation, the statements made concerning the Proposed Offer and the Proposed Transaction. Forward-looking statem
Slide 36: Additional Information for US Investors
Additional Information for US Investors In the United States, LINE will file a Solicitation/Recommendation Statement with the U.S. Securities and Exchange Commission (the “SEC”) on Schedule 14D-9 following commencement of a tender offer for securities of LINE within the meaning of Rule 14d-2 under t