Ly Corporation · TSE:4689
Ly — Z Holdings — Q1 FY2023 Earnings Presentation
37 slides from Ly's earnings presentation, Aug 3, 2023
Slide 1: FY2023 Q1 Appendix
Security Code: 4689 Z Holdings Corporation Business Results FY2023 Q1 Appendix August 3, 2023
Slide 2: FY2023 Q1 Consolidated Business Results
FY2023 Q1 Consolidated Business Results
Slide 3: FY2023 Q1 Factors of Change in Operating Income
FY2023 Q1 Factors of Change in Operating Income Whole Group (JPY B) FY2023 Q1 YoY Difference YoY Major Factors of Change1 (JPY B) • PayPay (Consolidated)² +34.0 • ASKUL (Consolidated) +4.4 Revenue 430.5 +39.9 +10.2% • ZOZO (Consolidated) +3.2 • LINE (Consolidated) +2.3 Cost of sales 127.6 +5.4 +4.4%
Slide 4: FY2023 Q1 Factors of Change in Net Income Attributable to Owners of the Parent
FY2023 Q1 Factors of Change in Net Income Attributable to Owners of the Parent Whole Group (JPY B) FY2023 Q1 YoY Difference YoY Major Factors of Change (JPY B) Operating income 59.3 +9.6 +19.5% Other non-operating income 23.8 +16.1 +209.2% • Gain on change in equity interest +14.9 Other non-operatin
Slide 5: FY2023 Q1 Equity in Losses of Associates and Joint Ventures
FY2023 Q1 Equity in Losses of Associates and Joint Ventures Whole Group Major Equity- Equity Based in Business Equity in Losses of Associates and Joint Ventures Method Affiliates Ratio1 Content (JPY B) WEBTOON • Operation of e-manga Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 U.S. 28.7% Entertainment services 0 -
Slide 6: Business Status of Equity-Method Affiliates
Business Status of Equity-Method Affiliates Whole Group • Many of the equity-method affiliates are moving into a monetizing phase from FY2023. • Aim to turn LINE’s international/financial businesses profitable in around FY2023-FY2025. (Taiwan) (Thailand) (Indonesia) • No. of app downloads1: • Vertic
Slide 7: Impact from Consolidation of Subsidiaries (PPA)
Impact from Consolidation of Subsidiaries (PPA) Whole Group LINE ZOZO PayPay Annual Annual Annual Amortization Amortization Amortization Amount Amortization Amount Amortization Amount Amortization Item Period Item Period Item Period (Straight (JPY B) Amount (JPY B) Amount (JPY B) Amount (Straight Li
Slide 8: FY2023 Q1 Consolidated Statement of Financial Position
FY2023 Q1 Consolidated Statement of Financial Position Whole Group (JPY B) FY2022 Q4 FY2023 Q1 Difference Assets 8,588.7 8,450.1 -138.5 Cash and cash equivalents 1,651.8 1,415.6 -236.1 Trade and other receivables 623.3 571.2 -52.0 Loans in credit card business 593.0 625.8 +32.7 Investment securities
Slide 9: Financial Index
Financial Index Whole Group 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) Consolidated - 47.5 dividend 30.7 50.7 Changes in - 50.0 47.8 debts, etc. 45.0 6.5 Operating Inv
Slide 10: Financial Index
Financial Index Whole Group 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 1,471.5 1,451.5 1,465.8 1,418.2 1,408.1 185.2 201.7 229.2 800.0 187.7 2.66x 2.50 231.9 2.49x 2.18x 2.21x 2.0
Slide 11: Change in Reporting Sub-Segments
Change in Reporting Sub-Segments Whole Group • Will change sub-segments from FY2023 Q3, to accommodate merger and growth phase of each business. Until FY2023 Q2 From FY2023 Q3 • Display ads, Other LINE • Account ads Search ads ー LINE Ads Ads Account ads ー Media Yahoo! • Search ads • Display ads (Pro
Slide 12: Media Business
Media Business
Slide 13: Business Results (P/L): Media Business
Business Results (P/L): Media Business Whole Group (JPY Million) FY2022 Q11, 2 FY2023 Q11,2 YoY Revenue 155,538 158,871 +2.1% LINE Advertising revenue 48,817 48,948 +0.3% Display advertising 27,369 24,721 -9.7% Account advertising 19,883 23,631 +18.8% Other LINE advertising 1,565 594 -62.0% Yahoo Ja
Slide 14: Major Services and Products of Media Business Segment
Major Services and Products of Media Business Segment Media Business Item Breakdown LINE Ads Display ads LINE VOOM, LINE NEWS, Chat List, Talk Head View, Talk Head View Custom, etc. Account ads LINE Official Account, LINE Promotion Sticker, LINE Sales Promotion, LINE Flyer, etc. Other ads LINE Part
Slide 15: Advertising Products
｜ Advertising Products Media Business Item Fee Calculation Placement Pages/Product Outline Type of Advertiser Display ads Cost per-click LINE VOOM LINE VOOM tab Major corporations/SMBs Cost per-view Cost per-click LINE NEWS NEWS tab Major corporations/SMBs Cost per-view Cost per-click Chat List Top
Slide 16: Advertising Products
｜ Advertising Products Media Business Item Fee Calculation Placement Pages Type of Advertiser Search advertising Cost per-click Search results pages Major corporations/SMBs Display advertising Programmatic Yahoo! JAPAN Ads Top page Cost per-click “Display advertising” Interior pages of service sites
Slide 17: Commerce Business
Commerce Business
Slide 18: Business Results (P/L): Commerce Business
Business Results (P/L): Commerce Business Commerce Business (JPY Million) FY2022 Q11,2 FY2023 Q11,2 YoY Revenue 205,629 206,861 +0.6% Merchandise EC 166,824 176,270 +5.7% Shopping business 79,392 71,178 -10.3% Reuse business 14,052 14,377 +2.3% ASKUL online BtoB business³ 73,379 90,714 +23.6% Servic
Slide 19: Major Services and Products of Commerce Business Segment
Major Services and Products of Commerce Business Segment Commerce Business Item Breakdown Merchandise EC - Yahoo! JAPAN Shopping, ZOZOTOWN, LOHACO, Charm, LINE SHOPPING, Shopping business LINE FRIENDS, LINE GIFT, MySmartStore, Yahoo! JAPAN Mart by ASKUL, LIVEBUY, LINE SHOPPING (Taiwan, Thailand), GI
Slide 20: KPI - Definition of EC Transaction Value
KPI - Definition of EC Transaction Value Commerce Business Item Major Services/products EC transaction value - Domestic merchandise - Yahoo! JAPAN Shopping, ZOZOTOWN, LOHACO, Charm, LINE SHOPPING, LINE GIFT, Shopping business LINE FRIENDS, MySmartStore, Yahoo! JAPAN Mart by ASKUL, LIVEBUY Reuse busi
Slide 21: Strategic Business
Strategic Business
Slide 22: Major KPIs of PayPay
｜ Major KPIs of PayPay Strategic Business Registered Users1・MTU2 (Standalone) No. of PayPay Payments3 (Standalone) (Million) (B) 58.37 1.519 56.64 54.00 1.392 51.21 1.368 48.65 1.267 1.113 30.33 30.21 28.19 25.16 22.53 M T U YoY +36.5% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 1. N
Slide 23: Major KPIs of PayPay Bank
｜ Major KPIs of PayPay Bank Strategic Business No. of Accounts Deposit Balance Loan Balance (Million) (JPY B) (JPY B) 7.18 1,666.9 1,688.8 624.4 613.2 6.96 6.68 1,585.2 1,539.5 1,517.9 6.42 6.22 503.9 511.8 486.0 YoY +15.4% YoY +9.7% YoY +26.2% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'22 Q3'22 Q4'22 Q
Slide 24: Capital Structure (Shareholding Ratio)
｜ Capital Structure (Shareholding Ratio) Strategic Business • Consolidated PayPay Corporation in October 2022. May 2018 As of end of As of end of As of end of As of end of Capital Structure after Completion of Transactions4,5 (At founding) May 2019 Mar 2020 Mar 2022 Sep 2022 (October 2022 –) Yahoo J
Slide 25: Major KPIs of International Financial Business
｜ Major KPIs of International Financial Business Strategic Business LINE Bank (Taiwan) – No. of Users LINE Bank (Indonesia) – No. of Users (Million) (Million) 1.57 0.62 1.48 1.39 0.55 1.31 0.51 1.23 0.46 0.39 YoY +27.8% YoY +57.3% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 24
Slide 26: Business Results (P/L): Strategic Business
Business Results (P/L): Strategic Business Strategic Business (JPY Million) FY2022 Q11,2 FY2023 Q11,2 YoY Revenue 30,316 65,466 +115.9% Fintech 30,507 65,366 +114.3% PayPay (Consolidated) 3 - 47,906 N/A PayPay Card4 13,901 - N/A PayPay Bank4 8,435 10,362 +22.8% Other fintech (LINE Fintech, etc.) 8,1
Slide 27: PayPay Corporation – Consolidated Business Results
PayPay Corporation – Consolidated Business Results Strategic Business Consolidated Revenue1/EBITDA2 (IFRSs) Consolidated Statement of Financial Position (IFRSs) (JPY B) (JPY B) 46.8 48.0 46.1 FY2022 Q4 FY2023 Q1 Difference 40.5 Assets 1,701.8 1,589.2 -112.5 34.1 Cash and deposits 641.2 522.9 -118.2
Slide 28: PayPay Bank Corporation – Business Results
PayPay Bank Corporation – Business Results Strategic Business Revenue/Operating Income (Non-Consolidated IFRS)1 Statement of Financial Position (JGAAP)1 (JPY B) (JPY B) 10.3 10.2 10.2 FY2022 Q4 FY2023 Q1 Difference 9.3 8.7 Assets 1,844.3 1,863.8 +19.4 Cash and cash equivalents 369.8 324.9 -44.8 Trad
Slide 29: Major Services and Products of Strategic Business Segment
Major Services and Products of Strategic Business Segment Strategic Business Item Breakdown Fintech - PayPay PayPay, PayPay Card (Consolidated) PayPay Bank - PayPay Asset Management, PayPay Insurance, LINE Pay, LINE Score, LINE Pocket Money, LINE BITMAX, Other fintech LINE NFT, etc. Others AI, LINE
Slide 30: International Business
International Business
Slide 31: International Business Development
｜ International Business Development International Business • 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 Revenue5 Ta
Slide 32: Non-Financial Information
Non-Financial Information
Slide 33: Remuneration Policy and Executive Remuneration Plan
Remuneration Policy and Executive Remuneration Plan Non-Financial Information • 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, aim to enh
Slide 34: User Base
User Base Non-Financial Information Yahoo Japan - Number of Monthly Logged-in User IDs LINE - Monthly Active Users (Million) (Million) June 2023 Global MAU1：199 54.8 55.3 54.8 54.9 54.3 176 176 176 178 178 9 8 7 7 6 53 53 53 54 54 22 22 22 22 22 92 93 94 95 95 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'
Slide 35: Integrated Report Portal
Integrated Report Portal Non-Financial Information • Financial/non-financial information useful for investment decisions are kept up to date Vision and Strategy Sustainability Value Creation Business Performance URL: (English) https://www.z-holdings.co.jp/integrated-report/en/ (Japanese) https://www
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 Z Holdings Corporation (Company, Z Holdings, ZHD) and its consolidated subsidiaries and affiliates. The Company cautions you that a numb
Slide 37: 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