Slide 1: LY Corporation Business Results FY2024 Q2 Appendix
LY Corporation Business Results FY2024 Q2 Appendix November 5, 2024 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): Commerce Business………….….......23 • Factors of Change in Adjusted Net Income…………....….………..5 • Major Services and Products o
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 Increase in revenue Q2 Q2 +20.9 (YoY +25.1%) Revenue 441.2 462.2 +20.9 65.8 -2.3 Increase in -5.3 Cost of sales 125.6 128.0 +2.3 56.7 cost of sales 52.6 Increase in SG&A One-time factor* SG&A 262.9 268.2 +5.3 -4.0 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 Decrease resulting from Q2 Q2 the absence of tax effect due to Operating income 56.7 65.8 +9.1 LY Corporation merger Operating income/EBITDA 103.3 112.6 +9.3 57.2 -28.2 adjustment items Adjusted Increase in Deprecia
Slide 7: Factors of Change in Adjusted EPS
Entire Group Factors of Change in Adjusted EPS1 (JPY) Decrease resulting from the absence of tax effect due to LY Corporation merger Decrease in 7.6 -3.8 equity in losses Adjusted EBITDA2 of associates Income tax +1.9 and joint expense and ventures other (YoY +42.2%) +0.2 +1.0 5.5 Decrease in -0.5 3
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 59.6 (Excluding Financial Business) (Financial Business) 57.0 15.5 Consolidated dividend - 49.8 10.8 Changes in debts, etc. -142.1 21.2 45.2 7.7 Oper
Slide 11: Financial Index: Interest-Bearing Debt and Net Leverage
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 1,427.7 1,388.7 1,343.5 1,328.2 800.0 1,307.6 2.50 242.5 236.2 198.
Slide 12: Capital Allocation
Entire Group Capital Allocation • In FY2025, will aim to exceed JPY20 for adjusted EPS. Capital Allocation Policy1 (Cumulative Approximate Value for FY2023-2025) Cost of Equity/Adjusted EPS (JPY B) Merger effect/ 365.0 200.0 financing 515.0 Buffer for additional Cost of Equity investments & capital
Slide 13: Major One-Time Gains/Losses (FY2023 Q1 – FY2024 Q1) – 1/2
Entire Group Major One-Time Gains/Losses (FY2023 Q1 – FY2024 Q1) – 1/2 Impact on P/L Period One-time Gains/Losses Outline Amount (JPY B) Item Operating Adjusted Adjusted Income EBITDA EPS Gain on loss of control of Gain recognized due to the deconsolidation of IPX Corporation, an Commerce segment su
Slide 14: Major One-Time Gains/Losses (FY2023 Q1 – FY2024 Q1) – 2/2
Entire Group Major One-Time Gains/Losses (FY2023 Q1 – FY2024 Q1) – 2/2 Impact on P/L Period One-time Gains/Losses Outline Amount (JPY B) Item Operating Adjusted Adjusted Income EBITDA EPS Gain on loss of control of FY2023 Gain recognized due to the listing of yutori, Inc., resulting in the Commerce
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: Business Results (P/L): Media Business
Media Business Business Results (P/L): Media Business (JPY Million) FY2023 Q21, 2, 3 FY2024 Q21,2,3 YoY Revenue 174,516 181,768 +4.2% Advertising Revenue 135,876 140,982 +3.8% Search advertising 48,619 49,649 +2.1% Account advertising 25,625 30,242 +18.0% Display advertising4 61,630 61,089 -0.9% Oth
Slide 18: Search Advertising
Media Business Search Advertising Search Advertising Revenue/YoY Growth Rate Factors Behind Change in Search Advertising Revenue (JPY B) (JPY B) +10.6% 49.0 48.2 +7.9% +6.5% -0.0 +0.8 +4.2% LY Corporation’s Partners’ +2.0% Growth Rate of LY Corporation’s Websites Websites Websites 51.1 48.2 47.8 49.
Slide 19: LYP Premium
Media Business LYP Premium Yahoo! JAPAN Premium/LYP Premium1 Membership Product Reinforcement Measures5 (Mil) 24.44 Use of multiple LINE Puri Real-time backup profiles 23.47 23.52 1.21 23.65 23.54 New 0.13 0.29 0.24 0.30 members2, 3 Launched To be To be in July 2024 launched in launched in FY2024 FY
Slide 20: Major Services and Products of Media Business Segment
Media Business Major Services and Products of Media Business Segment 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 “Displa
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: Business Results (P/L): Commerce Business
Commerce Business Business Results (P/L): Commerce Business (JPY Million) FY2023 Q21, 2, 3 FY2024 Q21, 2, 3 YoY Revenue 198,119 200,582 +1.2% LY Corporation 37,058 38,459 +3.8% Shopping business 18,953 18,377 -3.0% Reuse business 9,199 10,200 +10.9% Services e-commerce 8,696 9,383 +7.9% Other 209 49
Slide 25: Major Services and Products of Commerce Business Segment
Commerce Business Major Services and Products of Commerce Business Segment Item Breakdown LY Corporation ー Yahoo! JAPAN Shopping, LINE Brand Catalog1, LINE FRIENDS, LINE GIFT, MySmartStore2, Yahoo! JAPAN Quick Mart3, Shopping business Yahoo! JAPAN Mart by ASKUL4, LIVEBUY5, overseas e-commerce (LINE
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 MySmartStore2, Yahoo! JAPAN Quick Mart
Slide 27: III. Strategic Business
III. Strategic Business
Slide 28: Business Results (P/L): Strategic Business
Strategic Business Business Results (P/L): Strategic Business (JPY Million) FY2023 Q21, 2 FY2024 Q21, 2 YoY Revenue 69,589 81,282 +16.8% Fintech 69,522 81,239 +16.9% PayPay (Consolidated)3 50,739 58,882 +16.0% PayPay Bank4 10,472 12,366 +18.1% Other fintech (LINE Fintech, etc.) 8,311 9,990 +20.2% Ot
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) 59.2 FY2024 Q1 FY2024 Q2 Difference 56.3 57.2 55.6 51.4 Assets 1,711.5 1,712.0 +0.5 Cash and deposits 322.4 336.8 +14.4 Oth
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) 12.8 13.0 FY2024 Q1 FY2024 Q2 Difference 11.9 11.6 Assets 2,103.3 2,119.0 +15.7 10.9 Cash and cash equivalents 308.5 341.7 +33.1 Tr
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 Corporation Corporation Holdings Corporation 50% B Holdings Corporation 46.6% 76.6% 51
Slide 32: Major Services and Products of Strategic Business Segment
Strategic Business Major Services and Products of Strategic Business Segment Item Breakdown Fintech ― PayPay PayPay, PayPay Card (Consolidated) PayPay Bank ― PayPay Asset Management1, PayPay Insurance, LINE Pay2, LINE Score, LINE Pocket Money, Other fintech LINE BITMAX, LINE FX, DOSI, etc. Other Oth
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.