Slide 1: LY Corporation Business Results FY2023 Full Year & Q4 Appendix
LY Corporation Business Results FY2023 Full Year & Q4 Appendix May 8, 2024 Security Code: 4689
Slide 2: FY2023 Q4 Consolidated Business Results
FY2023 Q4 Consolidated Business Results
Slide 3: Factors Behind Change in Operating Income
Entire Group FY2023 Q4 Factors Behind Change in Operating Income (JPY B) FY2023 Q4 YoY Difference YoY Major Factors of Change1 (JPY B) • PayPay (Consolidated) +10.8 • ASKUL (Consolidated) +7.3 Revenue 467.8 +34.0 +7.8% • Subsidiaries of former LINE • Ikyu +2.9 Corporation +5.6 Cost of sales 136.2 +3
Slide 4: Factors Behind Change in Net Income Attributable to Owners of the Parent
Entire Group FY2023 Q4 Factors Behind Change in Net Income Attributable to Owners of the Parent (JPY B) FY2023 Q4 YoY Difference YoY Major Factors of Change (JPY B) Operating income 33.9 +9.6 +39.7% Other non-operating income 11.0 +3.6 +48.8% • Interest income +2.8 Other non-operating expenses 6.4 -
Slide 5: Equity in Losses of Associates and Joint Ventures
Entire Group FY2023 Q4 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 6: 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 322.
Slide 7: FY2023 Q4 Consolidated Statement of Financial Position
Entire Group FY2023 Q4 Consolidated Statement of Financial Position (JPY B) FY2023 Q3 FY2023 Q4 Difference Assets 8,983.7 9,043.9 +60.2 Cash and cash equivalents 1,525.7 1,420.4 -105.2 Trade and other receivables 689.2 684.0 -5.2 Loans in credit card business 760.6 783.8 +23.2 Investment securities
Slide 8: 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 - 57.4 30.7 Changes in debts, etc. -157.5 45.0 21.2 45.2 Operating
Slide 9: 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 1,465.8 1,408.1 1,427.7 Net leverage ratio: maintain 3X or less 1,388.7 229.2 1,307.6 800.0 2.50 231.9 242.
Slide 10: Change in Reporting Sub-Segments
Entire Group Change in Reporting Sub-Segments • Sub-segments have been 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 • Dis
Slide 11: Media Business
Media Business
Slide 12: Business Results (P/L): Media Business
Media Business Business Results (P/L): Media Business (JPY Million) FY2022 Q41, 2, 3 FY2023 Q41,2,3 YoY Revenue 181,373 180,804 -0.3% Advertising Revenue 140,674 146,572 +4.2% Search advertising 52,755 51,659 -2.1% Account advertising 22,429 28,133 +25.4% Display advertising4 65,489 66,778 +0.7% Oth
Slide 13: Search Advertising
Media Business Search Advertising Search Advertising Revenue/YoY Growth Rate Factors Behind Change in Search Advertising Revenue (JPY B) +10.6% 52.2 +7.9% 51.1 +7.4% +7.9% +1.7 -2.8 +4.2% Growth Rate LY Corporation’s of LY Corporation’s Partners’ Websites Websites Websites 52.2 51.1 49.1 48.2 47.8 9
Slide 14: Account Advertising
Media Business Account Advertising No. of Paid LINE Official Accounts (Global/Japan)1 Membership Plans (Revised in June 2023) (Thousands) 375 386 Cost per Fixed No. of Free 356 Membership Plans Additional Monthly Fee2 Messages Message2 315 Free Plan Free 1,000 N/A Previous 277 Light Plan JPY5,000 15
Slide 15: 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 - Yahoo! JAPAN Ads
Slide 16: Major Advertising Products (LINE Ads)
Media Business Major Advertising Products (LINE Ads) Item Fee Calculation Placement Pages/Product Outline Type of Advertiser Account ads - 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 17: 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 - Programmatic - Yahoo! JAPAN Ads Top page Pay per click “Display adve
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 Q41, 2, 3 FY2023 Q41, 2, 3 YoY Revenue 191,389 209,959 +9.7% LY Corporation 28,655 37,279 +30.1% Shopping business 15,489 20,424 +31.9% Reuse business 10,287 9,995 -2.8% Services e-commerce 5,783 6,594 +14.0% Other -2,9
Slide 20: Major Services and Products of Commerce Business Segment
Commerce Business Major Services and Products of Commerce Business Segment Item Breakdown LY Corporation - Yahoo! JAPAN Shopping, LINE SHOPPING, LINE FRIENDS, LINE GIFT, MySmartStore1, Yahoo! JAPAN Mart by Shopping business ASKUL, LIVEBUY, overseas e-commerce (LINE SHOPPING (Taiwan, Thailand), GIFTS
Slide 21: 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, LINE FRIENDS, Shopping business MySmartStore2, Yahoo! JAPAN Mart by ASKUL, L
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) 63.04 1.650 61.45 1.584 1.612 59.95 58.37 1.519 56.64 1.392 33.22 30.76 31.82 30.33 30.21 M T U YoY +18.5% Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 1. No.
Slide 24: Major KPIs of PayPay Card
Strategic Business Major KPIs of PayPay Card Active Cardholders Transaction Volume1 Revolving Balance (Mil) (JPY B) (JPY B) 11.62 1,279.1 345.9 11.17 1,251.0 334.6 10.73 317.3 10.42 10.04 1,111.0 294.2 1,079.2 971.9 259.8 YoY +15.8% YoY +31.6% YoY +33.1% Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q4'22 Q1'23 Q2'
Slide 25: Major KPIs of PayPay Bank
Strategic Business Major KPIs of PayPay Bank Revenue No. of Accounts Deposit Balance Loan Balance (JPY B) (Mil) (JPY B) (JPY B) 11.9 7.89 1,796.5 729.3 11.6 1,780.0 7.58 10.9 7.18 7.37 1,666.9 1,688.8 1,693.3 676.1 6.96 649.5 10.2 10.2 624.4 613.2 YoY +13.7% YoY +13.4% YoY +6.8% YoY +16.8% Q4'22 Q1'
Slide 26: 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 27: Major KPIs of Global Fintech Business
Strategic Business Major KPIs of Global Fintech Business LINE BK (Thailand) – No. of Users LINE Bank (Indonesia) – No. of Users (Million) (Million) 6.55 0.94 6.34 6.08 5.72 0.82 5.44 0.70 0.62 0.55 YoY +20.5% YoY +69.8% Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 26
Slide 28: Business Results (P/L): Strategic Business
Strategic Business Business Results (P/L): Strategic Business (JPY Million) FY2022 Q41, 2 FY2023 Q41, 2 YoY Revenue 63,493 78,342 +23.4% Fintech 61,351 78,016 +27.2% PayPay (Consolidated)3 43,065 55,582 +29.1% PayPay Bank4 9,757 11,628 +19.2% Other fintech (LINE Fintech, etc.) 8,527 10,805 +26.7% 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) 55.6 56.3 FY2023 Q3 FY2023 Q4 Difference 51.4 48.0 Assets 1,878.4 1,900.2 +21.7 46.1 Cash and deposits 604.3 580.7 -23.5 Ot
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) 11.9 FY2023 Q3 FY2023 Q4 Difference 11.6 10.9 Assets 2,058.4 2,052.5 -5.8 10.2 10.2 Cash and cash equivalents 363.6 248.2 -115.3 Tr
Slide 31: 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, Other fintech LINE BITMAX, LINE FX, DOSI, etc. Other Other
Slide 32: International Business
International Business
Slide 33: 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 34: Non-Financial Information
Non-Financial Information
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: User Base
Non-Financial Information User Base Yahoo! JAPAN – No. of Monthly Logged-in User IDs LINE - Monthly Active Users (Million) (Million) March 2024 Global MAU1：196 54.9 55.9 55.5 178 178 179 180 181 54.3 54.2 7 6 6 6 6 54 54 55 55 56 22 22 22 22 22 95 95 96 96 97 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q4'22 Q1'2
Slide 37: 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 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.