Slide 1: LY Corporation Business Results FY2023 Q2 Appendix
LY Corporation Business Results FY2023 Q2 Appendix November 7, 2023 Security Code: 4689
Slide 2: FY2023 Q2 Consolidated Business Results
FY2023 Q2 Consolidated Business Results
Slide 3: Factors Behind Change in Operating Income
Entire Group FY2023 Q2 Factors Behind Change in Operating Income (JPY B) FY2023 Q2 YoY Difference YoY Major Factors of Change1 (JPY B) • PayPay (Consolidated)² +36.5 • LINE (Consolidated) +7.5 Revenue 441.2 +46.9 +11.9% • ASKUL (Consolidated) +5.6 • Ikyu +3.8 • ASKUL (Consolidated) +4.0 • LINE (Cons
Slide 4: Factors Behind Change in Net Income Attributable to Owners of the Parent
Entire Group FY2023 Q2 Factors Behind Change in Net Income Attributable to Owners of the Parent (JPY B) FY2023 Q2 YoY Difference YoY Major Factors of Change (JPY B) Operating income 56.7 +6.9 +14.0% • Reversal of provision for doubtful accounts -1.6 Other non-operating income 1.7 -3.5 -67.2% • Forei
Slide 5: Equity in Losses of Associates and Joint Ventures
Entire Group FY2023 Q2 Equity in Losses of Associates and Joint Ventures Major Equity- Equity Based in Business Equity in Losses of Associates and Joint Ventures Method Affiliates Ratio1 Content (JPY B) WEBTOON • Operation of e-manga Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 U.S. 28.7% Entertainment services 0
Slide 6: Business Status of Equity-Method Affiliates
Entire Group Business Status of Equity-Method Affiliates • Many of the equity-method affiliates are moving into a monetizing phase from FY2023. • Aim to achieve profitability in LINE’s international business and global fintech business in around FY2023-FY2025. (Taiwan) (Thailand) (Indonesia) • No. o
Slide 7: Impact from Consolidation of Subsidiaries (PPA)
Entire Group Impact from Consolidation of Subsidiaries (PPA) LINE ZOZO PayPay Annual Annual Annual Amortization Amortization Amortization Amount Amortization Amount Amortization Amount Amortization Item Period Item Period Item Period (JPY B) Amount (JPY B) Amount (JPY B) Amount (Straight Line) (Stra
Slide 8: FY2023 Q2 Consolidated Statement of Financial Position
Entire Group FY2023 Q2 Consolidated Statement of Financial Position (JPY B) FY2023 Q1 FY2023 Q2 Difference Assets 8,450.1 8,699.3 +249.2 Cash and cash equivalents 1,415.6 1,387.3 -28.3 Trade and other receivables 571.2 622.6 +51.4 Loans in credit card business 625.8 663.0 +37.1 Investment securities
Slide 9: Financial Index: CAPEX and Net Cash Flow
Entire Group Financial Index CAPEX1,2 Net Cash Flow (Excluding Financial Business3/Financial Business)1 (JPY B) (JPY B) 72.7 Net Cash Flow Net Cash Flow (Excluding Financial Business) (Financial Business) 59.6 Consolidated dividend - 48.9 30.7 Changes in debts, etc. - 46.7 50.7 47.8 45.0 21.2 Operat
Slide 10: Financial Index: Net Interest-Bearing Debt and Leverage
Entire Group Financial Index Interest-Bearing Debt & Net Interest-Bearing Debt1 Net Leverage Ratio3 1,000.0 (Excluding financial business2) (Excluding financial business2) 3.00 (JPY B) (JPY B) 800.0 1,471.5 1,451.5 1,465.8 1,427.7 2.50 1,408.1 2.49x 185.2 201.7 229.2 231.9 242.5 2.18x 2.21x 2.12x 2.
Slide 11: Change in Reporting Sub-Segments
Entire Group Change in Reporting Sub-Segments • Sub-segments to be changed from FY2023 Q3, to accommodate merger and growth phase of each business. Until FY2023 Q2 From FY2023 Q3 • Display ads • Account ads Search ads ー LINE Ads • Other LINE Ads Account ads ー Media Yahoo! JAPAN • Search ads • Displa
Slide 12: Media Business
Media Business
Slide 13: Business Results (P/L): Media Business
Media Business Business Results (P/L): Media Business (JPY Million) FY2022 Q21 FY2023 Q21 YoY Revenue 156,250 163,230 +4.5% LINE Advertising revenue 48,607 52,369 +7.7% Display advertising 26,215 26,173 -0.2% Account advertising 20,858 25,625 +22.9% Other LINE advertising 1,534 570 -62.8% Yahoo! JAP
Slide 14: Media Business LINE Official Account membership fees
Media Business LINE Official Account • Revised membership plan fees in June 2023. Previous Membership Plans New Membership Plans Membership No. of Free Cost per Additional Membership No. of Free Cost per Additional Fixed Monthly Fee1 Fixed Monthly Fee1 Plans Messages Message 1 Plans Messages Message
Slide 15: Major Services and Products of Media Business Segment
Media Business Major Services and Products of Media Business Segment Item Breakdown LINE Ads Display ads LINE VOOM, LINE NEWS, Chat List, Talk Head View, Talk Head View Custom, etc. Account ads LINE Official Account, LINE Promotion Sticker, LINE de Obo (Participate with LINE), LINE Flyer, etc. Other
Slide 16: Major Advertising Products (LINE)
Media Business Major Advertising Products Item Fee Calculation Placement Pages/Product Outline Type of Advertiser Display ads Cost per click LINE VOOM LINE VOOM tab Major corporations/SMBs Cost per view Cost per click LINE NEWS NEWS tab Major corporations/SMBs Cost per view Cost per click Chat List
Slide 17: Major Advertising Products (Yahoo! JAPAN)
Media Business Major Advertising Products Item Fee Calculation Placement Pages Type of Advertiser Search advertising Cost per click Search results pages Major corporations/SMBs Display advertising Programmatic Yahoo! JAPAN Ads Top page Cost per click “Display advertising” Interior pages of service w
Slide 18: Commerce Business
Commerce Business
Slide 19: Business Results (P/L): Commerce Business
Commerce Business Business Results (P/L): Commerce Business (JPY Million) FY2022 Q21 FY2023 Q21 YoY Revenue 205,911 208,927 +1.5% Merchandise e-commerce 164,856 174,935 +6.1% Shopping business 77,136 71,627 -7.1% Reuse business 13,632 13,027 -4.4% ASKUL online BtoB business2 74,087 90,279 +21.9% Ser
Slide 20: Major Services and Products of Commerce Business Segment
Commerce Business Major Services and Products of Commerce Business Segment Item Breakdown Merchandise e-commerce - Yahoo! JAPAN Shopping, ZOZOTOWN, LOHACO, Charm, LINE SHOPPING, LINE FRIENDS, LINE Shopping business GIFT, MySmartStore, Yahoo! JAPAN Mart by ASKUL, LIVEBUY, LINE SHOPPING (Taiwan, Thail
Slide 21: KPI - Definition of E-Commerce Transaction Value
Commerce Business KPI - Definition of E-Commerce Transaction Value Item Major Services/Products E-commerce transaction value - Domestic merchandise - Yahoo! JAPAN Shopping, ZOZOTOWN, LOHACO, Charm, LINE SHOPPING, LINE GIFT, Shopping business LINE FRIENDS, MySmartStore, Yahoo! JAPAN Mart by ASKUL, LI
Slide 22: Strategic Business
Strategic Business
Slide 23: Major KPIs of PayPay
Strategic Business Major KPIs of PayPay Registered Users1・MTU2 (Standalone) No. of PayPay Payments3 (Standalone) (Million) (B) 59.95 1.584 58.37 1.519 56.64 54.00 1.392 51.21 1.368 1.267 30.76 30.33 30.21 28.19 25.16 M T U YoY +25.0% Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 1. No.
Slide 24: 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% 50.1% 51
Slide 25: Major KPIs of Global Fintech Business
Strategic Business Major KPIs of Global Fintech Business LINE Bank (Taiwan) – No. of Users LINE BK (Thailand) – No. of Users LINE Bank (Indonesia) – No. of Users (Million) (Million) (Million) 1.65 6.08 0.70 1.57 5.72 1.48 5.44 0.62 5.25 1.39 4.99 1.31 0.55 0.51 0.46 YoY +26.2% YoY +21.8% YoY +51.2%
Slide 26: Business Results (P/L): Strategic Business
Strategic Business Business Results (P/L): Strategic Business (JPY Million) FY2022 Q21 FY2023 Q21 YoY Revenue 33,044 69,594 +110.6% Fintech 33,349 69,527 +108.5% PayPay (Consolidated)2 - 50,739 N/A PayPay Card3 14,154 - N/A PayPay Bank3 9,652 10,472 +8.5% Other fintech (LINE Fintech, etc.) 9,542 8,3
Slide 27: 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) 51.4 FY2023 Q1 FY2023 Q2 Difference 46.8 48.0 46.1 Assets 1,589.2 1,625.1 +35.8 40.5 Cash and deposits 522.9 473.9 -48.9 Ot
Slide 28: 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) 10.9 FY2023 Q1 FY2023 Q2 Difference 10.3 10.2 10.2 Assets 1,863.8 1,908.7 +44.8 9.3 Cash and cash equivalents 324.9 258.6 -66.3 Tra
Slide 29: 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 Management, PayPay Insurance, LINE Pay, LINE Score, LINE Pocket Money, LINE BITMAX, Other fintech LINE NFT, etc. Others AI, LINE
Slide 30: International Business
International Business
Slide 31: 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 Revenue6 Taiw
Slide 32: Non-Financial Information
Non-Financial Information
Slide 33: 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 34: User Base
Non-Financial Information User Base Yahoo! JAPAN - Number of Monthly Logged-in User IDs LINE - Monthly Active Users (Million) (Million) September 2023 Global MAU1：196 55.3 54.8 54.9 54.3 54.2 176 176 178 178 179 8 7 7 6 6 53 53 54 54 55 22 22 22 22 22 93 94 95 95 96 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'
Slide 35: Integrated Report Portal
Non-Financial Information Integrated Report Portal • Financial/non-financial information useful for investment decisions are kept up to date. Management Message • Message from the CEO • Message from the CFO Vision and Value Creation Growth Strategy • Mission • Growth Strategy • Financial Information
Slide 36: 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 37: Create an amazing life platform that brings WOW! to our users.
Create an amazing life platform that brings WOW! to our users.