Slide 1: LY Corporation Business Results FY2024 Q3
LY Corporation Business Results FY2024 Q3 February 6, 2025 Security Code: 4689
Slide 2: FY2024 Q3 Business Results - Summary
FY2024 Q3 Business Results - Summary Revenue and profit increased as a result of growth in account advertising and PayPay Consolidated. 1 - FY2024 Q3 Result: Entire Group revenue JPY503.4 B (YoY+6.0%) Entire Group adjusted EBITDA JPY129.0 B (YoY+17.5%) Revised the dividend forecast upward for this f
Slide 3: Table of Contents
Table of Contents 1 Consolidated Business Results – Entire Group 2 Business Results – By Segment 3 Acquisition of BEENOS Inc.
Slide 4: Consolidated Business Results – Entire Group
Table of Contents 1 Consolidated Business Results – Entire Group 2 Business Results – By Segment 3 Acquisition of BEENOS Inc.
Slide 5: Entire Group FY2024 Q3 – Results
Entire Group FY2024 Q3 – Results • Revenue and profit increased, while progress against guidance for adjusted EBITDA exceeded 75%. Progress Against Guidance Segment Item FY2024 Q3 % YoY Change (First nine months of fiscal year) Revenue JPY503.4 B +6.0% 73.8% Entire Group Adjusted EBITDA JPY129.0 B +
Slide 6: Entire Group – Performance
Entire Group Entire Group – Performance • Both revenue and profit increased mainly due to growth in account advertising and PayPay Consolidated. Margin also improved YoY. Revenue/YoY Growth Rate Adjusted EBITDA/YoY Growth Rate Adjusted EBITDA Margin (JPY B) (JPY B) +7.8% +7.6% +41.6% +4.7% +6.0% Gro
Slide 7: Entire Group – Performance: Factors of Change in Adjusted EBITDA
Entire Group Entire Group – Performance • Profit increased due to revenue growth in each segment and disciplined cost allocation. Factors of Change in Adjusted EBITDA1 Revenue: +JPY28.4 billion • Media (+JPY6.0 B): Growth in account advertising (JPY B) • Commerce (+JPY6.8 B): Growth in ZOZO, ASKUL,
Slide 8: Reinforcement of Shareholder Return
Entire Group Reinforcement of Shareholder Return • Revised the dividend forecast upward for this fiscal year. Together with share buyback, will enhance shareholder return. Dividend/Dividend Payout Ratio (FY20-24) Reinforcement of Shareholder Return (JPY) 7.00 • Taking into account the shareholder •
Slide 9: Capital Allocation
Entire Group Capital Allocation • Forecast has been updated. Will continue to consider share buyback using the remaining buffer for additional investments and capital policy. Capital Allocation Policy (Cumulative Approximate Value for FY2023-2025/ Excluding Financial Business) (JPY B) Initial Plan (
Slide 10: Business Results – By Segment
Table of Contents 1 Consolidated Business Results – Entire Group 2 Business Results – By Segment 3 Acquisition of BEENOS Inc.
Slide 11: Media Business – Performance
Media Business Media Business – Performance • Growth in account advertising increased revenue and profit; margin maintained same level as the previous fiscal year/previous quarter. Revenue/YoY Growth Rate1, 2, 3 Adjusted EBITDA/YoY Growth Rate1, 2, 3 Adjusted EBITDA Margin1, 2, 3 (JPY B) (JPY B) +4.
Slide 12: Media Business – Revenue
Media Business Media Business – Revenue • Account advertising continues to grow; advertising revenue increased by +3.5% YoY. Revenue Entire Group total advertising revenue: (JPY B) +JPY9.8 billion 186.7 +3.4% 180.6 Search advertising: +JPY0.9 billion 148.0 +3.5% • YoY growth of LY Corporation’s webs
Slide 13: Media Business – Performance: Factors of Change in Adjusted EBITDA
Media Business Media Business – Performance • Profit increased as a result of continued revenue growth and cost control. Factors of Change in Adjusted EBITDA1 Cost of sales: +JPY3.4 billion (JPY B) • Increased mainly in ebookjapan, dely, and LINE Stickers. Increase in revenue +6.0 Improvement in SG&
Slide 14: Account Advertising
Media Business Account Advertising • Revenue increased steadily as a result of growth in the number of paid accounts and pay-as-you-go billing revenue. No. of Paid LINE Official Accounts (Global/Japan)1 Revenue (Thousands) (JPY B) 433 +25.4% 419 397 Pay-As-You-Go +21.6% +21.4% 39 Billing Accounts1 +
Slide 15: Commerce Business – Performance
Commerce Business Commerce Business – Performance • Revenue growth across each product resulted in a +19.9% YoY profit increase, with margins also improving YoY. Revenue/YoY Growth Rate1, 2, 3 Adjusted EBITDA/YoY Growth Rate1, 2, 3 Adjusted EBITDA Margin1, 2, 3 (JPY B) (JPY B) +5.7% +3.1% +16.0% +19
Slide 16: Commerce Business – Transaction Value
Commerce Business Commerce Business – Transaction Value • Yahoo! JAPAN Shopping grew by +9.5% YoY, while travel grew by +25.1%YoY. Entire Group – E-Commerce Transaction Value1 Domestic shopping business: +JPY37.7 billion (JPY B) • Yahoo! JAPAN Shopping’s transaction value grew by 1,184.0 +6.0% +9.5%
Slide 17: Commerce Business – Performance: Factors of Change
Commerce Business Commerce Business – Performance • Profit increased as a result of revenue growth across each product. Factors of Change in Adjusted EBITDA1 Revenue: +JPY6.8 billion (JPY B) • Increased as a result of growth in ZOZO, ASKUL, Improvement Yahoo! JAPAN Shopping, reuse, and travel Increa
Slide 18: Strategic Business – Performance
Strategic Business Strategic Business – Performance • PayPay Consolidated drove revenue and profit growth, and margins also showed significant YoY growth. Revenue/YoY Growth Rate1 Adjusted EBITDA1, 2 Adjusted EBITDA Margin1, 2 (JPY B) (JPY B) +23.4% 18.0 +20.9% +17.5% +16.8% +19.0% Growth 19.8% 15.3
Slide 19: Strategic Business – Revenue
Strategic Business Strategic Business – Revenue • PayPay Consolidated achieved approx. 20% YoY growth, while other fintech businesses achieved +27.7% YoY growth. Revenue PayPay Consolidated: +JPY11.0 billion (JPY B) • Revenue from payment fees increased along with 91.1 +19.0% growth of consolidated
Slide 20: Strategic Business – Performance: Factors of Change
Strategic Business Strategic Business – Performance • Revenue growth and improvement in SG&A resulted in a profit increase. Factors of Change in Adjusted EBITDA1 Cost of sales: +JPY0.8 billion (JPY B) • Increased mainly in PayPay Bank due to higher procurement Improvement in SG&A costs resulting fro
Slide 21: PayPay Consolidated Business Overview
Strategic Business PayPay Consolidated Business Overview • Profit surged due to growth in consolidated GMV from marketing campaigns as well as cost optimization. • Going forward, will further expand the financial business by strengthening collaboration with PayPay Bank. No. of Registered Users¹ GMV
Slide 22: Acquisition of BEENOS Inc.
Table of Contents 1 Consolidated Business Results – Entire Group 2 Business Results – By Segment 3 Acquisition of BEENOS Inc.
Slide 23: Acquisition of BEENOS Inc. Project Overview
Acquisition of BEENOS Inc. Project Overview Target Company BEENOS Inc. (Code: 3328 TSE Prime) Tender offer of common shares and share options (aiming to make the Target Company a wholly-owned Method subsidiary) • Approx. JPY54.0 B (planned) (Tender offer price: JPY 4,000 per share) Tender Offer Pric
Slide 24: Reinforcing the Reuse Business
Acquisition of BEENOS Inc. Reinforcing the Reuse Business • Although positioned as a core business with stable revenue, urgent efforts required for growth and expansion. Overview of the Reuse Business Composition of Merchandise Transaction Value in Japan Reuse Business Transaction Value (JPY B) +9.2
Slide 25: Overview of the Reuse Market in Japan
Acquisition of BEENOS Inc. Overview of the Reuse Market in Japan • LY Corporation is one of the leading players in the Japanese reuse market, which continues to grow. Overview of the Domestic Reuse Market1 (JPY T) Online: 2.1 Offline: 1.2 LY Corporation’s reuse business: 1.0 Total of several competi
Slide 26: Overview of the Intermediary Cross-Border E-Commerce Market
Acquisition of BEENOS Inc. Overview of the Intermediary Cross-Border E-Commerce Market • Aiming to accelerate growth by expanding focus on intermediary cross-border e-commerce (CBEC), which continues to experience high growth. Japan’s CtoC Market & Intermediary CBEC Market LY Corporation’s Transacti
Slide 27: Overview and Strength of BEENOS Inc.
Acquisition of BEENOS Inc. Overview and Strength of BEENOS Inc. • Aiming to capture market growth by acquiring BEENOS, which has a proven track record in the intermediary CBEC market. Overview of BEENOS Inc. BEENOS Inc.’s Strength in the Intermediary CBEC Market Name BEENOS Inc. No.1 annual GMV in i
Slide 28: Anticipated Synergies
Acquisition of BEENOS Inc. Anticipated Synergies • Synergies are expected through sales promotional efficiency and expansion of CBEC. Measures to Generate Synergies Buyer Seller • Implement sales promotional Auction Target growth measures for overseas buyers (FY24–28) Flea Market (BEENOS) • Offer pr
Slide 29: 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 30: Create an amazing life platform that brings WOW! to our users.
Create an amazing life platform that brings WOW! to our users.