Slide 1: Z Holdings Corporation Business Results FY2023 Q1
Security Code: 4689 Z Holdings Corporation Business Results FY2023 Q1 August 3, 2023
Slide 2: FY2023 Q1 Business Results - Topics
FY2023 Q1 Business Results - Topics Revenue: JPY430.5 B (YoY+10.2%), adjusted EBITDA: JPY99.9 B (YoY+15.6%). Both renewed the highest record for Q1. PayPay consolidated: in Q1, turned profitable in adjusted EBITDA¹ for the first time. • Revenue of account ads maintained double-digit growth. Steady g
Slide 3: Table of Contents
Table of Contents 1 Consolidated Business Results – Whole Group 2 Business Results/Topics – By Segment
Slide 4: Consolidated Business Results – Whole Group
Table of Contents 1 Consolidated Business Results – Whole Group 2 Business Results/Topics – By Segment
Slide 5: Whole Group – Performance
Whole Group – Performance Whole Group • Both revenue and adjusted EBITDA achieved double-digit growth. Revenue/YoY Growth Rate Adjusted EBITDA/YoY Growth Rate Adjusted EBITDA Margin (JPY B) (JPY B) +10.9% +10.2% Absence of gain on sales of +55.0% Growth YJFX! in previous fiscal year +6.5% +15.6% +4.
Slide 6: Factors of Change in Adjusted EBITDA
Factors of Change in Adjusted EBITDA Whole Group • Adjusted EBITDA increased due to cost optimization and selective focus on key businesses. Factors of Change in Adjusted EBITDA Major Factors of YoY Change in FY2023 Q1 (SG&A/EBITDA) (JPY B) (JPY） Z Holdings Listed PayPay (excluding listed (Consolida
Slide 7: Factors of Change in Operating Income
Factors of Change in Operating Income Whole Group • Op. income grew YoY +19.3% due to growth in adjusted EBITDA, despite increase in depreciation and amortization. (JPY B) (JPY B) FY2022 FY2023 Growth in YoY Q1 Q1 adjusted EBITDA1 Increase in PPA Other (YoY+19.3%) +13.4 Impairment Adjusted EBITDA1 8
Slide 8: Factors of Change in Adjusted Net Income
Factors of Change in Adjusted Net Income Whole Group • Adjusted net income: YoY +34.8%, due to gain on change in equity interest in Webtoon Entertainment. (JPY B) (JPY B) FY2022 FY2023 Increase in YoY Q1 Q1 income tax Gain on expense change in Operating income 49.7 59.3 +9.6 equity interest -17.3 Ot
Slide 9: Selective Focus on Key Businesses – Progress
Selective Focus on Key Businesses – Progress Whole Group • Reorganize financial businesses to expand Group synergies. Structure After Reorganization1 Reorganization of Domestic Financial Businesses LY Corporation 1 LINE Securities (Former Z Holdings) Transferred securities business to focus on profi
Slide 10: Initiatives on Generative AI
Initiatives on Generative AI Whole Group • Leveraging generative AI, working to improve services and increase work efficiency. Applications in Services Increased Efficiency PayPay Flea Market1 Introduction of GitHub Copilot4 • Feature to assist composition of text to explain items using • Introduce
Slide 11: New Product-Driven Structure
New Product-Driven Structure Whole Group • Introduce new structure to boost product innovation capability and improve profitability.¹ Objectives Board of Directors Organizational Structure New Title Name Seven Companies Speedier Decision-Making Chairperson and Representative Director Kentaro Kawabe
Slide 12: FY2023 Consolidated Full-Year Guidance
FY2023 Consolidated Full-Year Guidance Whole Group • Newly added advertising revenue and revenue of Commerce Business to guidance. Segment Item FY2022 Results FY2023 Guidance YoY Revenue JPY1.67 T Approx. JPY1.90 T Approx. +14% Whole Group Adjusted EBITDA JPY332.6 B JPY356.0 to 366.0 B Approx. +10%
Slide 13: Business Results/Topics – By Segment
Table of Contents 1 Consolidated Business Results – Whole Group 2 Business Results/Topics – By Segment
Slide 14: Media Business – Performance
Media Business – Performance Media Business • Revenue increased due to recovery in ads on media sections. Income decreased due to increase in personnel expense, etc. Revenue/YoY Growth Rate1 Adjusted EBITDA/YoY Growth Rate1 Adjusted EBITDA Margin (JPY B) (JPY B) +5.4% +2.1% +4.0% +4.5% +0.6% Growth
Slide 15: Whole Group – Total Advertising Revenue
Whole Group – Total Advertising Revenue Media Business • Total advertising revenue, excluding Shopping-related ads, increased YoY +1.2%; signs of bottoming out. Whole Group – Total Advertising Revenue1 Whole Group – Total Advertising Revenue YoY Growth Rate1 (JPY B) 151.5 151.7 +23.3% 143.0 145.1 14
Slide 16: Factors of Change in Display Ads
Factors of Change in Display Ads Media Business • Revenue decreased due to shopping ads, reservation ads, and market conditions. Factors of Change in Display Ads1 (Revenue) Future Initiatives (JPY B) Transfer of livedoor Shopping- Market 76.4 business Reservation conditions • Reinforce targeting acr
Slide 17: LINE Official Account
LINE Official Account Media Business • Due to revision in fee plans, no. of paid accounts increased while cancellations were curbed. No. of Paid LINE Official Accounts (Global)1 Revision of Fee Plans (Revised on June 1, 2023) (Thousand) 315 • Further strengthen features and reinforce collaborations
Slide 18: Commerce Business – Performance
Commerce Business – Performance Commerce Business • Adjusted EBITDA margin exceeded 20％ due to improved profitability. Revenue/YoY Growth Rate1 Adjusted EBITDA/YoY Growth Rate1 Adjusted EBITDA Margin (JPY B) (JPY B) +6.9% +85.6% +4.9% +4.2% +24.2% 22.5% +0.6% Growth +7.1% Growth -3.0% +5.6% +0.4% Ra
Slide 19: Business Overview (EC Transaction Value)
Business Overview (EC Transaction Value) Commerce Business • Decline in domestic merchandise transaction value bottoming out. Group EC Transaction Value1 Group EC Transaction Value1 - YoY Growth Rate (JPY B) 1,118.2 1,026.2 87.8 989.5 980.3 982.5 +15.1% 43.7 Overseas EC3 +13.5% 84.7 80.9 75.1 76.6 4
Slide 20: Business Overview (Domestic E-commerce Transaction Value)
Business Overview (Domestic E-commerce Transaction Value) Commerce Business • Shopping’s results within expectations; travel maintained favorable growth. Domestic Shopping Transaction Value1 Domestic Reuse Transaction Value1 Domestic Service Transaction Value1 – YoY Growth Rate – YoY Growth Rate – Y
Slide 21: Improvement in Profitability of Commerce Business and Initiatives
Improvement in Profitability of Commerce Business and Initiatives Commerce Business • Profitability significantly improved; steady progress made in essential enhancement of services. Improvement in Repeat Ratio/Profitability & Product Reinforcement Profitability improved through cost optimization Es
Slide 22: Strategic Business – Performance
Strategic Business – Performance Strategic Business • Significant improvement in profitability — adjusted EBITDA¹ of consolidated PayPay results turned profitable; progress made in selective focus on key businesses. Revenue/YoY Growth Rate² Adjusted EBITDA² Adjusted EBITDA Margin (JPY B) (JPY B) +14
Slide 23: Strategic Business – PayPay Business Overview
｜ Business Overview Strategic Business • Consolidated revenue recorded continued growth exceeding YoY +40%; as a result, EBITDA (consolidated) turned profitable for the first time. No. of Registered Users/ GMV (Consolidated) 1,2/ Revenue (Consolidated)3/ EBITDA (Consolidated)4 Growth Rate (YoY) Grow
Slide 24: PayPay Card – Major KPIs
PayPay Card – Major KPIs Strategic Business • No. of cardholders, transaction volume maintained over YoY +20% growth, due to synergies with PayPay, etc. Active Cardholders/Growth Rate (YoY) Transaction Volume1/Growth Rate (YoY) Revolving Balance/Growth Rate (YoY) (Mil) (JPY B) (JPY B) 10.42 1,079.2
Slide 25: PayPay Bank – Major KPIs
PayPay Bank – Major KPIs Strategic Business • All indices resulted in steady YoY increase. Revenue/Growth Rate (YoY) No. of Accounts/Growth Rate (YoY) Deposit Balance/Growth Rate (YoY) Loan Balance/Growth Rate (YoY) (JPY B) (Mil) (JPY B) (JPY B) 624.4 613.2 10.3 10.2 10.2 7.18 1,666.9 1,688.8 6.96 6
Slide 26: 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 Z Holdings Corporation (Company, Z Holdings, ZHD) and its consolidated subsidiaries and affiliates. The Company cautions you that a numb
Slide 27: Unleashing the infinite potential of all people, with the power of information technology
Unleashing the infinite potential of all people, with the power of information technology