Slide 1: LY Corporation Earnings FY2025 Q1
LY Corporation Earnings FY2025 Q1 August 4, 2025 Security Code: 4689
Slide 2: FY2025 Q1 Earnings Highlights
FY2025 Q1 Earnings Highlights Performance tracking with full-year guidance 1 - FY2025 Q1 Result: Consolidated revenue JPY489.6 B (YoY+5.7%) Consolidated adjusted EBITDA JPY125.8 B (YoY+3.4%) Progress on mid/long-term growth initiatives 2 - Phased LINE revamp began in July 2025; continued upgrades to
Slide 3: Table of Contents
Table of Contents 1 Financial Results – Consolidated 2 Financial Results/Topics – by Segment
Slide 4: Financial Results – Consolidated
Table of Contents 1 Financial Results – Consolidated 2 Financial Results/Topics – by Segment
Slide 5: FY2025 Q1 – Performance
Consolidated FY2025 Q1 – Performance Overall progress remains aligned with full-year guidance Segment Item FY2025 Q1 % YoY Change Progress Against Guidance Revenue JPY489.6 B +5.7 % 23.3 % Consolidated Adjusted EBITDA JPY125.8 B +3.4 % 24.7 to 25.2 % Adjusted EPS JPY6.05 +7.1 % 22.5 to 23.4 % Revenu
Slide 6: Consolidated – Performance
Consolidated Consolidated – Performance Strong performance led by account ads and PayPay consolidated Revenue/ %YoY Growth Adjusted EBITDA/ %YoY Growth Adjusted EBITDA Margin (JPY B) (JPY B) +7.6% +5.7% +21.7% +17.5% +4.7% +6.0% +4.5% +9.1% +5.5% +3.4% % Growth % Growth 129.0 125.8 503.4 488.7 489.6
Slide 7: Consolidated – Performance: Normalized profit rose 7.1% YoY
Consolidated Consolidated – Performance Normalized profit rose 7.1% YoY, excluding FY24 one-time gains Change in Adjusted EBITDA1 Revenue: +JPY26.5 billion (JPY B) • Media (+JPY1.0 B): Growth in account advertising. Increase in revenue • Commerce (+JPY7.2 B): Growth in ZOZO, ASKUL, and Yahoo! JAPAN
Slide 8: Consolidated – Total Advertising Revenue
Consolidated Consolidated – Total Advertising Revenue Strong growth in commerce ads fueled by higher Shopping GMV Consolidated – Total Advertising Revenue¹ Consolidated – Total Advertising Revenue % YoY Growth (JPY B) 167.0 164.5 156.3 157.1 +40.6% Commerce1 150.1 19.6 16.8 +33.8% +33.3% 15.9 17.5 C
Slide 9: Consolidated – E-Commerce Transaction Value
Consolidated Consolidated – E-Commerce Transaction Value Shopping and service-related businesses drove growth Consolidated – E-Commerce Transaction Value1 Consolidated – E-Commerce Transaction Value % YoY Growth1 (JPY B) 1,180.2 1,063.8 1,092.4 1,095.1 1,025.4 +8.1% +8.1% +7.9% +6.5% 504.1 424.5 +7.
Slide 10: Share Repurchase and Cancellation of Treasury Shares
Consolidated Share Repurchase and Cancellation of Treasury Shares Ongoing share repurchase and cancellation totaling approx. JPY150bn under capital allocation policy Announced on May 7, 2025 Announced on June 30, 2025 Total Number of Shares Total Number of Shares 218,064,491 shares 63,400,000 shares
Slide 11: 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) 1,110.0 1,110.0 Cost of Equity Merger effect/ 210.0 Remaining: 1
Slide 12: LINE App Revamp
Consolidated LINE App Revamp Phased release starting with Shopping and Wallet Tabs Tab Structure Schedule Shopping Tab Old From Sep. 2025 onward Phased release beginning with subset of users Home Chats VOOM News Wallet Wallet Tab ▼ ▼ ▼ ▼ ▼ Features being released in phases New Others From FY2025 H2
Slide 13: LINE App Revamp | Shopping/Wallet Tabs
Consolidated LINE App Revamp | Shopping/Wallet Tabs Reinforce traffic to commerce/mini apps and drive LINE user engagement Shopping Wallet • Portal for LINE Commerce services* • Revamping UI/UX with a focus on MINI Apps to reinforce traffic • To be personalized using data, with AI suggested products
Slide 14: Generative AI
Consolidated Generative AI Accelerating Gen AI uptake in Japan through offering AI-enabled services 14 Services and Features Utilizing Gen AI Released in FY2025 (April-July) Yahoo! JAPAN Shopping Yahoo! JAPAN Shopping Yahoo! JAPAN AI Assistant Yahoo! JAPAN News AI Topics Product Comparison/ Product
Slide 15: PayPay's IPO
Consolidated PayPay’s IPO Capital Structure of PayPay (as of June 30, 2025) SVF2 LY Corporation’s Position on PayPay’s IPO Maintain existing capital structure(consolidated) post-IPO 50.0% 50.0% BHD LY Corporation, together with other stakeholders, 8.0% 49.9% 8.0% 34.0% remains committed to supportin
Slide 16: Financial Results/Topics – by Segment
Table of Contents 1 Financial Results – Consolidated 2 Financial Results/Topics – by Segment
Slide 17: Media Business – Performance
Media Business Media Business – Performance Revenue up on strong performance in account ads. Profit decline due to higher SG&A expenses Revenue/ % YoY Growth1, 2 Adjusted EBITDA/ % YoY Growth1, 2 Adjusted EBITDA Margin1, 2 (JPY B) (JPY B) +4.4% 4.1% +4.6% +22.6% +3.3% +15.4% +8.9% +0.6% +5.1% % Grow
Slide 18: Media Business – Revenue
Media Business Media Business – Revenue Ad revenue saw net growth, with account ads compensating for decline in search ads Revenue Consolidated total advertising revenue: (JPY B) +JPY1.9 billion 176.2 177.2 +0.6% Search advertising: -JPY3.8 billion Advertising Revenue 138.2 140.1 +1.4% • Impact of s
Slide 19: Media Business – Performance
Media Business Media Business – Performance Profit declined as higher platform-related investments outweighed gains from revenue and COGS improvements Factors of Change in Adjusted EBITDA1 Revenue: +JPY1.0 billion (JPY B) • Increase in account advertising. Increase in SG&A Increase in revenue +6.8 C
Slide 20: Media Business Search Advertising
Media Business Search Advertising Revenue decline driven by sector-specific demand slowdowns, unrelated to AI search proliferation Search Advertising Revenue/ %YoY Growth Factors Behind Change in Search Advertising Revenue (JPY B) (JPY B) +6.5% Slowdown in +2.5% +1.7% +0.2% advertising demand -5.4%
Slide 21: Media Business Account Advertising
Media Business Account Advertising High growth backed by increase in paid accounts and expansion of usage-based billing No. of Paid LINE Official Accounts (Global/Japan)1 Revenue (Thousands) (JPY B) 454 +21.4% 440 +19.7% 433 Pay-As-You-Go +18.0% +18.3% 419 38 +16.9% 397 39 37 Billing Accounts1 36 35
Slide 22: Media Business LINE MINI App
Media Business LINE MINI App Mini app adoption accelerating; strengthen features and sales to drive further growth No. of LINE MINI Apps LINE MINI App MAU Enhancement Initiatives (MM) 23,550 14.73 Features Offline retail acquisition 14.49 21,245 Newly established specialized Payment 19,227 12.50 sub
Slide 23: Commerce Business – Performance
Commerce Business Commerce Business – Performance Higher revenue was offset by absence of one-time gains recorded from previous year Revenue/ %YoY Growth1, 2 Adjusted EBITDA/ %YoY Growth1, 2 Adjusted EBITDA Margin1, 2 (JPY B) (JPY B) +5.7% +19.5% +3.3% +3.5% +16.5% +1.3% +0.4% % Growth +9.9% -25.8%
Slide 24: Commerce Business – Revenue
Commerce Business Commerce Business – Revenue Steady growth across all products Revenue LY Corporation: +JPY1.9 billion (JPY B) • Shopping business (-JPY0.4 B): Decreased due to 215.9 +3.5% impact of IPX (LINE FRIENDS business) 208.7 deconsolidation. Yahoo! JAPAN Shopping’s transaction value increas
Slide 25: Commerce Business – Performance
Commerce Business Commerce Business – Performance Stable YoY on a normalized basis, adjusting for one-time item Factors of Change in Adjusted EBITDA1 Revenue: +JPY7.2 billion (JPY B) • Increased mainly in ZOZO, ASKUL, and Yahoo! JAPAN Gain on loss of Shopping. BEENOS is consolidated from FY2025 Q1.
Slide 26: Strategic Business – Performance
Strategic Business Strategic Business – Performance PayPay Consolidated drove strong revenue growth of +22% YoY; Margins exceed 20% Revenue/ %YoY Growth1,2 Adjusted EBITDA1,2 Adjusted EBITDA Margin1,2 (JPY B) (JPY B) +22.1% 20.9 +20.9% +19.0% 21.7% +16.8% % Growth +14.5% 17.9 19.7% 18.5% 96.6 91.1 8
Slide 27: Strategic Business – Revenue
Strategic Business Strategic Business – Revenue PayPay leads growth; Other Fintech businesses also expanding Revenue PayPay Consolidated1: +JPY 15.9 billion (JPY B) • For PayPay, revenue from payment fees increased 96.6 +22.1% along with growth of consolidated GMV, while interest revenue also grew a
Slide 28: Strategic Business – Performance
Strategic Business Strategic Business – Performance Strong earnings from revenue growth and SG&A improvement Factors of Change in Adjusted EBITDA1 COGS: +JPY2.1 billion (JPY B) • Increased mainly in PayPay Bank due to higher Increase in procurement costs resulting from interest rate hikes. revenue +
Slide 29: PayPay Consolidated – Business Overview
PayPay Consolidated1 – Business Overview Strong GMV; PayPay posts +20% revenue growth and profit surge No. of Registered Users2 GMV (Consolidated)3 Revenue (Consolidated)4 EBITDA (Consolidated)5 (MM) (JPY T) (JPY B) (JPY B) 69.81 4.5 86.1 21.8 65.72 67.00 68.38 64.45 4.2 4.1 80.3 78.6 3.8 19.3 3.6 6
Slide 30: 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 31: LY Corporation
LY Corporation Create an amazing life platform that brings WOW! to our users.