Slide 1: LY Corporation Earnings FY2025 Full Year & Q4
LY Corporation Earnings FY2025 Full Year & Q4 May 8, 2026 Security Code: 4689
Slide 2: FY2025 Full Year & Q4 Earnings Highlights
FY2025 Full Year & Q4 Earnings Highlights Revenue and profit increased despite temporary impact of ASKUL’s system outage. 1 - FY25 Results: Consolidated revenue JPY2.0 T (YoY+6.2%) / Consolidated adjusted EBITDA JPY496.6 B (YoY+5.5%) - FY25 Results (Excluding ASKUL1): Revenue JPY1.6 T (YoY+13.3%) /
Slide 3: Table of Contents
Table of Contents 1 Financial Results – Consolidated 2 Financial Results – by Segment 3 FY2026 Initiatives
Slide 4: Table of Contents
Table of Contents 1 Financial Results – Consolidated 2 Financial Results – by Segment 3 FY2026 Initiatives
Slide 5: Consolidated FY2025 Full Year – Performance
Consolidated FY2025 Full Year – Performance Segment Item FY2024 FY2025 % YoY Change Revenue JPY1,917.4 B JPY2,036.3 B +6.2 % Consolidated Adjusted EBITDA JPY470.8 B JPY496.6 B +5.5 % Adjusted EPS1 JPY24.9 JPY28.7 +15.3 % Revenue JPY732.1 B JPY735.1 B +0.4 % Media Adjusted EBITDA JPY287.0 B JPY280.6
Slide 6: Consolidated – Performance
Consolidated Consolidated – Performance Revenue and profit increased despite ASKUL’s system outage, with margins maintained Revenue/ %YoY Growth Adjusted EBITDA/ %YoY Growth Adjusted EBITDA Margin (JPY B) (JPY B) +30.0% +24.7% +12.4% +13.5% +0.3% +5.5% +6.7% +8.5% +5.7% +6.2% % Growth % Growth 496.6
Slide 7: Consolidated – Performance: Factors of Change in Adjusted EBITDA
Consolidated Consolidated – Performance Factors of Change in Adjusted EBITDA1 Revenue: +JPY191.8 billion (Excluding ASKUL2) • Media: +JPY3.0 B (JPY B) - Search advertising: -JPY 20.7B - Account advertising: +JPY 19.3B YoY +5.5% - Display advertising: +JPY3.5 B • Commerce: +JPY82.0 B YoY +12.6% - LY
Slide 8: Table of Contents
Table of Contents 1 Financial Results – Consolidated 2 Financial Results – by Segment 3 FY2026 Initiatives
Slide 9: Media Business – Performance
Media Business Media Business – Performance Revenue increased as account ad growth offset search ad revenue decline, while profit decreased due to higher costs Revenue/ % YoY Growth1, 2, 3 Adjusted EBITDA/ % YoY Growth1, 2, 3 Adjusted EBITDA Margin1, 2, 3 (JPY B) (JPY B) +4.3% +12.8% +6.9% +1.0% +0.
Slide 10: Media Business – Performance
Media Business Media Business – Performance Revenue1,2,3 Adjusted EBITDA1,2,3 (JPY B) (JPY B) Decrease Increase in COGS 735.1 +0.4% 732.1 in revenue -2.2 Advertising Revenue 576.8 578.9 +0.4% +3.0 287.0 (YoY -2.2%) Search Advertising 199.8 179.0 -10.4% 280.6 +11.6 145.7 +15.3% Increase Account Adver
Slide 11: Steady growth in paid accounts and pay-as-you-go account revenue
Media Business Account Advertising Steady growth in paid accounts and pay-as-you-go account revenue No. of Paid LINE Official Accounts (Global/Japan)1 Revenue (Thousands) (JPY B) 493 +22.3% +20.1% Pay-As-You-Go 440 43 Billing Accounts1 +15.3% 386 37 34 145.7 311 126.3 273 237 105.2 Plan Revenue 450
Slide 12: LINE MINI App expanding as touchpoints between stores and users
Media Business LINE MINI App LINE MINI App expanding as touchpoints between stores and users Initiatives No. of LINE MINI Apps LINE MINI App MAU (Thousands) (Mil) Digital Content Billing Feature 33 28.97 • Full-scale launch in April 2026 • Billing for digital content, including games, enabled within
Slide 13: Targeting 100K stores across dining and hair/beauty domains
Media Business Digital Transformation (DX) Solutions for Stores Targeting 100K stores across dining and hair/beauty domains For F&B Industry For Hair/Beauty Industry Restaurant Option: JPY36,000/month1 Beauty Option: JPY17,500/month1 Mobile ordering Order-taking CRM Reservation Initial Customer app
Slide 14: Monetization strengthened through LINE revamp and userbase expansion
Media Business LINE Revamp and LYP Premium Monetization strengthened through LINE revamp and userbase expansion LINE Revamp (Home Tab) LYP Premium In addition to information related to friends and everyday living, the Home tab No. of Direct Subscribers1 will offer content tailored to users’ interest
Slide 15: Commerce Business – Performance
Commerce Business Commerce Business – Performance Revenue rose despite profit decline due to ASKUL impact, driven by new consolidations and existing business growth Revenue/ %YoY Growth1, 2, 3 Adjusted EBITDA/ %YoY Growth1, 2, 3 Adjusted EBITDA Margin1, 2, 3 (JPY B) (JPY B) +4.3% +25.1% +2.6% +1.1%
Slide 16: Commerce Business – Performance
Commerce Business Commerce Business – Performance Revenue1,2,3 Adjusted EBITDA1,2,3 (JPY B) (JPY B) Decrease in COGS Decrease in 857.6 +1.1% adjusted 848.4 -0.6 EBITDA of ASKUL LY Corporation 165.2 and others4 232.5 +40.7% 149.0 -28.4 (YoY -12.8%) +17.6 +21.5 ZOZO 207.9 Increase 129.9 Increase in SG
Slide 17: Transaction value expanded solidly, driven by growth in reuse and travel
Commerce Business E-Commerce Transaction Value Transaction value expanded solidly, driven by growth in reuse and travel E-Commerce Transaction Value1 E-Commerce Transaction Value % YoY Growth1 (JPY B) 4,261.2 3,938.9 +15.5% 1,866.0 Shopping +14.0% Reuse 1,750.6 +11.2% Travel/F&B +5.1% +6.6% Shopping
Slide 18: AI integration progressing steadily across shopping and reuse
Commerce Business Shopping/Reuse AI integration progressing steadily across both domains through pricing model transition and product improvements Yahoo! JAPAN Shopping Reuse Enhancing AI monetization points Yahoo! JAPAN Shopping Plan Revision (Sep. 2026) Evolution through AI utilization through pro
Slide 19: Strategic Business – Performance
Strategic Business Strategic Business – Performance Strong revenue growth and further margin expansion accelerated profit growth Revenue/ %YoY Growth1,2 Adjusted EBITDA1,2 Adjusted EBITDA Margin1,2 (JPY B) (JPY B) +51.0% 93.9 +30.6% +17.7% % Growth 445.7 21.1% 341.2 14.9% 50.7 289.9 Revenue 4.0% 11.
Slide 20: Strategic Business – Performance
Strategic Business Strategic Business – Performance Revenue1,2 Adjusted EBITDA1,2 (JPY B) (JPY B) 445.7 +30.6% Increase in revenue Increase in +104.5 SG&A +45.4 341.2 +16.0 (YoY +85.0%) Increase in 375.1 +26.1% COGS 93.9 PayPay Consolidated3 297.5 50.7 70.5 +61.6% Other4 43.6 FY2024 FY2025 FY2024 FY
Slide 21: PayPay Consolidated – Business Overview
Strategic Business PayPay Consolidated – Business Overview Consolidated EBITDA expanded to exceed JPY100.0 B, driven by growth in payments and financial services No. of Registered Users1 GMV (Consolidated)2 Revenue (Consolidated)3 Adjusted EBITDA (Consolidated)4 (Mil) (JPY T) (JPY B) (JPY B) 73.36 1
Slide 22: Table of Contents
Table of Contents 1 Financial Results – Consolidated 2 Financial Results – by Segment 3 FY2026 Initiatives
Slide 23: FY2026 Initiatives
FY2026 Initiatives 1 Adopting AI Agents in Our Services Initiatives to Enhance Shareholder Returns and Improve 2 Capital Efficiency 3 Business Performance Outlook 22
Slide 24: FY2026 Initiatives
FY2026 Initiatives 1 Adopting AI Agents in Our Services Initiatives to Enhance Shareholder Returns and Improve 2 Capital Efficiency 3 Business Performance Outlook 23
Slide 25: Current State of Generative AI Usage in Japan
Current State of Generative AI Usage in Japan Over 80% of people do not use generative AI on a daily basis Daily AI Usage Rate1 Regularly use generative AI 16.0％ 1. Survey conducted by LY Corporation on generative AI (Survey period: January 23–26, 2026; target respondents: men and women aged 18–69 i
Slide 26: Our View of the Business Environment and Strategic Direction
Our View of the Business Environment and Strategic Direction Evolution and self-transformation in response to changes in the AI era Evolving experiences centered on LINE Introducing AI agents to existing services Home Scheduling Profile Image Top Page Finance Commerce Generation Note: For illustrati
Slide 27: Agent i / Agent i for Business
Agent i / Agent i for Business Elevating user and business experiences Users Business Accounts 100 Mil+ 1 Mil+ LINE OA AI mode Companies/ Users stores Note: For illustrative purpose only. The screens shown above are under development and may differ from the final specifications. 26
Slide 28: Agent i
Agent i Evolving each service into an agent, gradually increasing available domains - Released (incl. beta ver.) - Shopping Outings Weather Career Cars Relationships Recipes advice Users - Under development - Learning Local Scheduling Parenting support Flight Fan Housing Healthcare booking activitie
Slide 29: Agent i for Business
Agent i for Business Addition of AI features to the MINI App and Official Account to promote corporate digital transformation - Customer engagement - AI staff AI sales rep AI concierge Companies/ stores - Operations/analysis - AI marketer AI analyst AI operator Note: For illustrative purpose only. T
Slide 30: Development of new monetization models suited to the AI era
Monetization Development of new monetization models suited to the AI era Commission on Agent- User Billing (FY2026) Agent-Based Ads (FY2026) Based Transactions Client Billing (FY2026) LYP Premium Agent i AI Purchase Support LINE OA AI Mode LYP Premium members Userbase for AI monetization Expansion o
Slide 31: FY2026 Initiatives
FY2026 Initiatives 1 Adopting AI Agents in Our Services Initiatives to Enhance Shareholder Returns and Improve 2 Capital Efficiency 3 Business Performance Outlook 30
Slide 32: Medium-Term Targets for Corporate Value Enhancement
Medium-Term Targets for Corporate Value Enhancement Adjusted EBITDA/ Shareholder Returns ROE Adjusted EPS 株主還元 Total payout ratio of 70% or more High single-digit 8% or more in FY2030 growth or higher From stable dividends to dividends aligned with profit growth 31
Slide 33: Aim for ROE 8% or more in FY2030, balancing growth investments and shareholder returns
Consolidated Capital Allocation/Enhancing Capital Efficiency Aim for ROE 8% or more in FY2030, balancing growth investments and shareholder returns FY2023 to FY2025/Excluding Financial Business FY2026 to FY2028/Excluding Financial Business (JPY B) (JPY B) 1,160.0 High 1,077.8 1,077.8 Carryovers 100.
Slide 34: FY2026 dividends to increase significantly to JPY11
Shareholder Return FY2026 dividends to increase significantly to JPY11, reflecting sustained profit growth since the business integration Dividends Total Payout Ratio From stable dividends to dividends aligned with profit growth 5-year cumulative total1: 70% or more 11.00 Dividend per share (JPY) 14
Slide 35: FY2026 Initiatives
FY2026 Initiatives 1 Adopting AI Agents in Our Services Initiatives to Enhance Shareholder Returns and Improve 2 Capital Efficiency 3 Business Performance Outlook 34
Slide 36: Growth across all segments to drive double-digit revenue and profit growth
Business Performance Outlook Growth across all segments to drive double-digit revenue and profit growth Segment Item FY2026 YoY Factors of Change Revenue JPY2.24 T +10.0% - Adjusted EBITDA JPY585.0 B +17.8% - Consolidated • Temporary growth deceleration due to a reversal Adjusted EPS1 JPY30.0 +4.4%
Slide 37: FY2025 Full Year & Q4 Earnings Highlights
FY2025 Full Year & Q4 Earnings Highlights Revenue and profit increased despite temporary impact of ASKUL’s system outage. 1 - FY25 Results: Consolidated revenue JPY2.0 T (YoY+6.2%) / Consolidated adjusted EBITDA JPY496.6 B (YoY+5.5%) - FY25 Results (Excluding ASKUL1): Revenue JPY1.6 T (YoY+13.3%) /
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: WOW Our Users!
LY Corporation WOW Our Users!