Slide 1: LY Corporation Earnings FY2025 Q2
LY Corporation Earnings FY2025 Q2 November 4, 2025 Security Code: 4689
Slide 2: FY2025 Q2 Earnings Highlights
FY2025 Q2 Earnings Highlights Consolidated results expand steadily. Adjusted EBITDA posting double digit growth 1 - FY2025 Q2 Result : Consolidated revenue JPY505.7 B (YoY+9.4%; highest Q2 result) Consolidated adjusted EBITDA JPY125.4 B (YoY+11.3%; highest Q2 result) Raised full-year dividend foreca
Slide 3: Table of Contents
Table of Contents 1 Financial Results – Consolidated 2 Financial Results – by Segment 3 Key Strategies
Slide 4: Table of Contents
Table of Contents 1 Financial Results – Consolidated 2 Financial Results – by Segment 3 Key Strategies
Slide 5: Consolidated FY2025 Q2 – Performance
Consolidated FY2025 Q2 – Performance Consolidated revenue slightly behind guidance due to search advertising impact. Adjusted EBITDA and EPS on track Segment Item FY2025 Q2 % YoY Change Progress Against Guidance Revenue JPY505.7 B +9.4 % 47.4 % Consolidated Adjusted EBITDA JPY125.4 B +11.3 % 49.3 to
Slide 6: Consolidated – Performance
Consolidated Consolidated – Performance EBITDA increased by YoY +11.3% on PayPay (consolidated) growth and LY (standalone) cost reductions Revenue/ %YoY Growth Adjusted EBITDA/ %YoY Growth Adjusted EBITDA Margin (JPY B) (JPY B) +9.4% +17.5% +11.3% +9.1% +5.5% +3.4% +6.0% +5.7% % Growth % Growth +4.7
Slide 7: Factors of Change in Adjusted EBITDA
Consolidated Consolidated – Performance Factors of Change in Adjusted EBITDA1 Revenue: +JPY43.5 billion • Media: -JPY0.4 B (JPY B) - Search advertising: -JPY6.5 B Increase in revenue - Account advertising: +JPY4.8 B - Display advertising: +JPY2.3 B +43.5 • Commerce: +JPY14.6 B - ZOZO, ASKUL: +JPY7.7
Slide 8: Consolidated – Total Advertising Revenue
Consolidated Consolidated – Total Advertising Revenue Commerce advertising grew backed by solid growth in GMV Consolidated – Total Advertising Revenue¹ Consolidated – Total Advertising Revenue % YoY Growth (JPY B) 167.0 164.5 157.1 160.0 156.3 19.6 16.8 15.9 17.5 18.8 Commerce1 +40.6% +33.8% +33.3%
Slide 9: Consolidated – E-Commerce Transaction Value
Consolidated Consolidated – E-Commerce Transaction Value Growth led by Yahoo! Shopping. Full consolidation of BEENOS also contributed Consolidated – E-Commerce Transaction Value1 Consolidated – E-Commerce Transaction Value % YoY Growth1 (JPY B) 1,180.2 1,187.6 1,092.4 1,095.1 1,063.8 +15.7% Domestic
Slide 10: Upward Revision to Dividend Forecast
Consolidated Upward Revision to Dividend Forecast Raised dividend forecast, reflecting share repurchase and cancellation Share Repurchase and Cancellation of Treasury Shares Revision of Dividend Forecast The dividend forecast has been revised upward due Total Number of to a decrease in the number of
Slide 11: LINE App Revamp
Consolidated LINE App Revamp Talk, Shopping, Wallet tab releases progressing in stages. Test release of Home tab to begin within the year Home Tab Chat Tab • A “gateway” that aggregates • Improve UI/UX for more intuitive various services and use. 1 2 information • Phased rollout to begin in 1 • Deli
Slide 12: Optimization of Management Resources
Optimization of Management Resources Driving operational efficiency through AI. Allocating resources to growth areas and pushing fixed-cost reductions Reallocation of Human Resources to Growth Areas Reduction of Fixed Costs (LY Corporation Only) Reduction of JPY15.0 B (excluding advertising and prom
Slide 13: Table of Contents
Table of Contents 1 Financial Results – Consolidated 2 Financial Results – by Segment 3 Key Strategies
Slide 14: Media Business – Performance
Media Business Media Business – Performance Adjusted EBITDA growth rate and margin improved QoQ, driven by cost reductions Revenue/ % YoY Growth1, 2 Adjusted EBITDA/ % YoY Growth1, 2 Adjusted EBITDA Margin1, 2 (JPY B) (JPY B) +4.1% +4.6% +22.6% +3.3% +0.6% -0.3% +8.9% +5.1% -7.4% -4.2% % Growth % Gr
Slide 15: Media Business – Performance
Media Business Media Business – Performance Revenue Adjusted EBITDA1 (JPY B) (JPY B) 180.3 179.8 -0.3% Decrease in Decrease in revenue COGS Advertising Revenue 140.9 141.6 +0.5% 70.9 -0.4 -0.0 (YoY -4.2%) Search Advertising 49.6 43.1 -13.2% 68.0 +2.4 Account Advertising 30.2 35.0 +16.1% Increase in
Slide 16: Account Advertising
Media Business Account Advertising Paid accounts and revenue continues to expand No. of Paid LINE Official Accounts (Global/Japan)1 Revenue (Thousands) (JPY B) 469 +19.7% +18.3% 454 +18.0% +16.9% 440 +16.1% 433 41 419 38 39 37 36 Pay-As-You-Go 35.0 Billing Accounts1 33.3 33.9 32.8 30.2 273 282 292 2
Slide 17: Commerce Business – Performance
Commerce Business Commerce Business – Performance High single digit revenue growth. EBITDA growth rate improved QoQ Revenue/ %YoY Growth1, 2 Adjusted EBITDA/ %YoY Growth1, 2 Adjusted EBITDA Margin1, 2 (JPY B) (JPY B) +7.2% +19.5% +3.3% +3.5% % Growth +9.9% +1.3% +0.4% -4.6% -10.5% % Growth -25.8% 22
Slide 18: Commerce Business – Performance
Commerce Business Commerce Business – Performance Revenue Factors of Change in Adjusted EBITDA1 (JPY B) (JPY B) 216.6 +7.2% Increase in revenue +14.6 Increase in 201.9 SG&A 46.7 +17.3% +10.9 LY Corporation 39.8 +5.2 Increase in (YoY -4.6%) 34.9 COGS 33.3 • LY Corporation (+JPY5.5 B): Increase in sal
Slide 19: Strategic Business – Performance
Strategic Business Strategic Business – Performance Revenue up YoY+35%. Margin remains above 20% Revenue/ %YoY Growth1 Adjusted EBITDA1,2 Adjusted EBITDA Margin1,2 (JPY B) (JPY B) +35.0% 22.9 +22.1% 20.9 +16.8% +19.0% +14.5% 109.7 % Growth 21.7% 20.9% 17.9 18.5% 19.7% 96.6 91.1 89.6 15.0 2 81.2 13.4
Slide 20: Strategic Business – Performance
Strategic Business Strategic Business – Performance Revenue Factors of Change in Adjusted EBITDA2 (JPY B) (JPY B) 109.7 +35.0% Increase in revenue Increase in +28.4 SG&A, etc. +16.5 81.2 +4.0 Increase in COGS (YoY +52.1%) 91.5 +28.4% 22.9 PayPay Consolidated1 71.2 • PayPay Consolidated (+JPY9.8 B):
Slide 21: PayPay Consolidated – Business Overview
Strategic Business PayPay Consolidated – Business Overview Solid business growth driving expansion across GMV, revenue and profit No. of Registered Users1 GMV (Consolidated)2 Revenue (Consolidated)3 EBITDA (Consolidated)4 (Mil) (JPY T) (JPY B) (JPY B) 71.07 4.7 92.4 26.4 67.00 68.38 69.81 4.5 65.72
Slide 22: Table of Contents
Table of Contents 1 Financial Results – Consolidated 2 Financial Results – by Segment 3 Key Strategies
Slide 23: AI Agent Growth Strategy
AI Agent Growth Strategy OA & MINI Apps Drive growth by AI-agentizing all services and enhancing OA1 and MINI apps2 Agentization Enhance of all services OA & MINI Apps Search Companies/Stores/ Users Brands Media Finance Commerce Cumulative total: 1.30 Mil+ 100 Mil+3 Music accounts4 1. OA: Official A
Slide 24: Progress of AI Agentization
AI Agent Progress of AI Agentization OA & MINI Apps Aim to enable daily AI agent use by 100mil users No. of AI service users Key Generative AI-Based Services AI Answers on LINE AI Talk Suggestions Yahoo! JAPAN Search As of Oct. 2025 8.60 Mil DAU1 Displays generative AI AI-driven suggestions for answ
Slide 25: Media Business Portfolio Realignment
AI Agent Media Business Portfolio Realignment OA & MINI Apps Prioritize OA and MINI apps growth, targeting a 40~45% adjusted EBITDA margin Image of Revenue1 Growth in the Advertising Business Portfolio Realignment Approx. 40% Gross Profit Margin Growth Rate Approx. 25% OA & MINI Apps OA and MINI app
Slide 26: OA Performance and Outlook
AI Agent OA Performance and Outlook OA & MINI Apps No. of paid OA1 rose, revenue2 expanding steadily No. of Paid OAs1,2 (Japan) ARPA2,3 (Japan) OA Revenue2 (Japan) (Ten thousands) (JPY 10K) (JPY B) 31 2.62 97.7 2.54 2.56 27 86.0 23 72.3 CAGR＋14% CAGR＋16% FY2023 FY2024 FY2025 FY2023 FY2024 FY2025 FY2
Slide 27: AI Agent Revenue and KPI
AI Agent Revenue and KPI OA & MINI Apps Targeting 2x revenue1 by FY28 relative to FY25 FY2025 FY2028 Expand MINI Apps and launch SaaS Establish revenue models for each using OA as foundation domain and expand service value Approx. JPY280.0 B Approx. JPY140.0 B 2x MINI No. of MINI Apps 35,000 → 310,0
Slide 28: AI Agent Future Business Development
AI Agent Future Business Development OA & MINI Apps Further expand OA customer base and increase APRA through MINI apps and SaaS ARPA Market Size1 ARPA SaaS (To be launched H1 of 2026) SaaS JPY890.0 B Store DX Reservation CRM MINI Apps Ads JPY840.0 B Ads Payment Payment JPY1,360.0 B No. of target No
Slide 29: Key Initiatives for MINI Apps
AI Agent Key Initiatives for MINI Apps OA & MINI Apps Focus on strengthening sales capabilities and improving UX to drive sustained growth in No. of MINI apps and MAU Number of MINI Apps (Japan) Scale Swiftly Through Adoptions2 by Leading Companies (Ten thousands) 2.5 F&B Entertainment Retail 1.7 ＋5
Slide 30: FY2025 Q2 Earnings Highlights
FY2025 Q2 Earnings Highlights Consolidated results expand steadily. Adjusted EBITDA posting double digit growth 1 - FY2025 Q2 Result : Consolidated revenue JPY505.7 B (YoY+9.4%; highest Q2 result) Consolidated adjusted EBITDA JPY125.4 B (YoY+11.3%; highest Q2 result) Raised full-year dividend foreca
Slide 31: 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 32: LY Corporation
LY Corporation Create an amazing life platform that brings WOW! to our users.