Slide 1: LY Corporation Earnings FY2025 Q3 Appendix
LY Corporation Earnings FY2025 Q3 Appendix February 4, 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 Products . . . ……………
Slide 4: Table of Contents
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 YoY Q3 Q3 Increase in Sales Revenue 382.5 442.6 +60.1 +60.1 Increase in SG&A +26.1 COGS 43.6 64.8 +21.2 +21.2 Increase in (YoY +9.6%) SG&A 260.8 286.9 +26.1 COGS 85.5 82.1 (YoY -15.1%) 78.0 -5.2 69.6 -4.0 Other income and Other in
Slide 6: Change in Adjusted Net Income
Consolidated Change in Adjusted Net Income1 (JPY B) PPA amortization Other non- expense, operating income non-recurring Increase in adjusted and expenses losses/gains EBITDA2 +13.3 +6.4 -14.0 ASKUL (YoY +2.5%) ASKUL (YoY -5.9%) +0.1 53.1 -1.8 51.2 52.5 -2.5 +4.6 Increase in equity in 50.0 Increase i
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) PPA amortization Other non- expense, Increase in adjusted operating income non-recurring EBITDA2 and expenses losses/gains +2.9 +0.9 -2.0 (YoY +8.7%) ASKUL (YoY -1.5%) ASKUL +0.0 7.4 -0.4 +0.9 7.6 -0.3 7.3 7.0 Increase in equity in Increase in D&A losses of
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 Equity in Losses of Associates and Joint Ventures Key Equity Method Equity Based in Business Affiliates Ratio1 (JPY B) Contents Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 WEBTOON U.S. 24.0%
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 597.5 51.8% ASKUL 58.9 46.9% Kurashiru 27.2 54.9% Demae-can 5.4 37.2% WEBTOON Entertainment 63.9 24.0% LINE Pay Taiwan 112.5 58.1% Total 865.6 - 1. As of December 31, 2025 10
Slide 12: 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 13: Financial Indicators
Consolidated Financial Indicators CAPEX1 Net Cash Flow (Excluding Financial Business2/Financial Business)1 (JPY B) (JPY B) 42.1 42.4 Net Cash Flow Net Cash Flow (Excluding Financial Business) (Financial Business) 37.1 37.1 0.2 13.3 33.6 16.3 0.4 Consolidated dividend -67.0 10.8 Changes in debts, etc
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) 1,371.4 1,328.9 1,000.0 1,305.9 1,324.0 Net leverage ratio: maintain 3X or less 1,256.0 178.7 3.00 192.7 1
Slide 15: Consolidated Capital Allocation
Consolidated Capital Allocation Balancing growth investments and shareholder returns to drive positive spread Capital Allocation Policy (Cumulative Approximate Value for FY2023-2025/Excluding Financial Business) Cost of Equity (JPY B) 1,060.0 1,060.0 Merger effect/ Cost of Equity financing 210.0 Rem
Slide 16: Key One-Time Gains/Losses (FY2025 Q1 – FY2025 Q3)
Consolidated Key One-Time Gains/Losses (FY2025 Q1 – FY2025 Q3) Impact on P/L Amount Period One-time Gains/Losses Outline Item (JPY B) Operating Adjusted Adjusted Income EBITDA EPS Gain recognized due to the sale of shares in FY2025 Gain on sale of shares Other non-operating Remember & Company Co., L
Slide 17: 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 18: Consolidated Security Measures
Consolidated Security Measures Security measure expenses on target with planned budget 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. 4.0 Adj
Slide 19: Table of Contents
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 Q31, 2, 3 FY2025 Q31,2, 3 YoY Revenue 186,917 187,022 +0.1% Advertising Revenue 148,399 148,929 +0.4% Search advertising 49,348 44,684 -9.5% Account advertising 33,643 38,280 +13.8% Display advertising3 65,407 65,964 +0.9% Other (Vertical/enterta
Slide 22: 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) +2.0% 49.3 -1.6% Other +1.1 44.6 -7.7% -9.5% -13.2% % Growth -4.1 -1.7 Slowdown in 50.8 Partners’ 49.3 advertising demand 5.9 46.1 websites 6.4 44.6
Slide 23: 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 - Yahoo! JAPAN Ads “Display Ads (Auction),” LINE VOOM,
Slide 24: Key Advertising Products (LINE Ads)
Media Business Key Advertising Products (LINE Ads) 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
Slide 25: 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 - Programmatic - Top page Yahoo! JAPAN Ads Pay per click Interior pages o
Slide 26: II. Commerce Business
II. Commerce Business
Slide 27: Commerce Business Performance (P/L)
Commerce Business Performance (P/L) (JPY Million) FY2024 Q31, 2 FY2025 Q31, 2 YoY Revenue 226,030 194,926 -13.8% LY Corporation 44,293 72,836 +64.4% Shopping business 22,075 24,593 +11.4% Reuse business 11,168 16,259 +45.6% Services e-commerce 10,238 31,576 +208.4% Other 810 407 -49.8% ZOZO, ASKUL 1
Slide 28: Commerce Business Key Services and Products
Commerce Business Key Services and Products Item Breakdown LY Corporation - 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 Y
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 - Domestic merchandise - 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 Q31, 2 FY2025 Q31, 2 YoY Revenue 91,114 118,447 +30.0% Fintech 91,072 118,447 +30.1% PayPay (Consolidated)3 66,561 98,294 +47.7% PayPay Bank4 12,612 - N/A Other fintech (LINE Fintech, etc.) 11,898 20,152 +69.4% Other Strategic Business 42 - N
Slide 32: Strategic Business Financial Subsidiaries B/S
Strategic Business Financial Subsidiaries B/S PayPay (Consolidated)1 Other Fintech Business (JPY B) FY2025 Q2 FY2025 Q3 Change FY2025 Q2 FY2025 Q3 Change Assets 4,634.3 5,172.2 +537.9 827.0 882.4 +55.5 Cash and deposits 386.6 506.2 +119.6 107.0 113.0 +6.0 Other assets 4,247.7 4,665.9 +418.3 719.9 76
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 57.9%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 BITMAX, 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: Table of Contents
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: LY Corporation
LY Corporation Create an amazing life platform that brings WOW! to our users.