Ly Corporation · TSE:4689
Ly — FY2024 Q1 Earnings Presentation
37 slides from Ly's earnings presentation, Aug 2, 2024
Slide 1: LY Corporation Business Results FY2024 Q1 Appendix
LY Corporation Business Results FY2024 Q1 Appendix August 2, 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 • Business Results (P/L): Commerce Business……….21 • Factors of Change in Operating Income…….………………..4 • Major Services and Products of Commerce Business • Factors of Change in Adjusted Net Income…………...
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 (YoY +79.8%) Q1 Q1 106.8 Revenue 430.5 463.0 +32.5 Increase in revenue Cost of sales 127.6 132.0 +4.3 +32.5 SG&A 253.9 267.3 +13.4 (YoY +30.3%) One-time factors* -4.3 63.7 59.3 -10.4 Operating income 59.3 106.8 +47.
Slide 6: Factors of Change in Adjusted Net Income
Entire Group Factors of Change in Adjusted Net Income (JPY B) (JPY B) FY2023 FY2024 YoY Increase in Q1 Q1 operating income* Operating income* 59.3 106.8 +47.4 +47.4 Other non-operating 23.8 5.3 -18.4 income Other non- operating Other non-operating 6.1 20.5 +14.4 expenses expenses -14.4 Decrease in i
Slide 7: Equity in Losses of Associates and Joint Ventures
Entire Group FY2024 Q1 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) WEBT
Slide 8: 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 9: 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) 15.5 Consolidated dividend - 48.9 45.0 21.2 45.2 Changes in debts, etc. +28.5 7.7 10.7 Opera
Slide 10: Financial Index: Interest-Bearing Debt and Net Leverage Ratio
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 1,408.1 1,427.7 1,388.7 1,307.6 1,343.5 800.0 2.50 231.9 242.5 236.
Slide 11: 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/ financing 200.0 Buffer for additional 515.0 investments & capital Approx. 4.5–7.5% Cost
Slide 12: Major One-Time Gains/Losses (FY2023 Q1 – FY2024 Q1) No. 1
Entire Group Major One-Time Gains/Losses (FY2023 Q1 – FY2024 Q1) No. 1 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 13: Major One-Time Gains/Losses (FY2023 Q1 – FY2024 Q1) No. 2
Entire Group Major One-Time Gains/Losses (FY2023 Q1 – FY2024 Q1) No. 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 14: Table of Contents
Table of Contents 1 Entire Group – Consolidated Business Results 2 Business Results – By Segment 3 Non-Financial Information
Slide 15: I. Media Business
I. Media Business
Slide 16: Business Results (P/L): Media Business
Media Business Business Results (P/L): Media Business (JPY Million) FY2023 Q11, 2, 3 FY2024 Q11,2,3 YoY Revenue 170,096 177,661 +4.4% Advertising Revenue 132,287 138,237 +4.5% Search advertising 49,642 49,985 +0.7% Account advertising 23,631 28,681 +21.4% Display advertising4 59,013 59,570 +0.9% Oth
Slide 17: Search Advertising
Media Business Search Advertising Search Advertising Revenue/YoY Growth Rate Factors Behind Change in Search Advertising Revenue (JPY B) +10.6% 49.1 49.4 +7.9% +7.9% +6.5% Growth Rate +2.6 -2.3 +4.2% of LY Corporation’s Websites LY Corporation’s Partners’ Websites Websites 51.1 49.1 48.2 49.4 47.8 6
Slide 18: 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 advertising” Account advertising LINE Official Account, LINE Promotion Sticker, LINE de Obo (Participate with LINE), LINE Flyer, etc. Display advertising ー Yahoo! JAPAN Ads
Slide 19: 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 20: 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 Yahoo! JAPAN Ads Top page Pay per click “Display adve
Slide 21: II. Commerce Business
II. Commerce Business
Slide 22: Business Results (P/L): Commerce Business
Commerce Business Business Results (P/L): Commerce Business (JPY Million) FY2023 Q11, 2, 3 FY2024 Q11, 2, 3 YoY Revenue 196,072 207,359 +5.8% LY Corporation 34,371 37,879 +10.2% Shopping business 17,438 19,415 +11.3% Reuse business 10,621 10,873 +2.4% Services e-commerce 6,066 7,252 +19.5% Other 244
Slide 23: 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 SHOPPING, LINE FRIENDS, LINE GIFT, MySmartStore1, Yahoo! JAPAN Mart by ASKUL, Shopping business LIVEBUY2, overseas e-commerce (LINE SHOPPING (Taiwan, Thailand), GIFT
Slide 24: 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 SHOPPING, LINE GIFT, LINE FRIENDS, Shopping business MySmartStore2, Yahoo! JAPAN Mart by ASKUL, L
Slide 25: III. Strategic Business
III. Strategic Business
Slide 26: Business Results (P/L): Strategic Business
Strategic Business Business Results (P/L): Strategic Business (JPY Million) FY2023 Q11, 2 FY2024 Q11, 2 YoY Revenue 65,463 79,139 +20.9% Fintech 65,363 79,089 +21.0% PayPay (Consolidated)3 47,906 56,925 +18.8% PayPay Bank4 10,362 11,793 +13.8% Other fintech (LINE Fintech, etc.) 7,095 10,370 +46.2% O
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) 56.3 57.2 FY2023 Q4 FY2024 Q1 Difference 55.6 51.4 48.0 Assets 1,900.2 1,711.5 -188.6 Cash and deposits 580.7 3,22.4 -258.3
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) 12.8 FY2023 Q4 FY2024 Q1 Difference 11.9 11.6 Assets 2,052.5 2,103.3 +50.7 10.9 10.2 Cash and cash equivalents 248.2 308.5 +60.2 Tr
Slide 29: 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 30: 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 Pay1, LINE Score, LINE Pocket Money, Other fintech LINE BITMAX, LINE FX, DOSI, etc. Other Othe
Slide 31: IV. International Business
IV. International Business
Slide 32: 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 33: Table of Contents
Table of Contents 1 Entire Group – Consolidated Business Results 2 Business Results – By Segment 3 Non-Financial Information
Slide 34: 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 35: 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 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.