Slide 1: FY2026 Q1 Appendix
LY Corporation Earnings FY2026 Q1 Appendix August 3, 2026 Security Code: 4689
Slide 2: Table of Contents
Table of Contents 1 Financial Results – Consolidated 2 Financial Results – by Segment 3 Non-Financial Information
Slide 3: Table of Contents (Details)
Table of Contents (Details) 1. Financial Results - Consolidated II. Commerce Business • Change in Operating Income…….…………….................………………..4 • Performance (P/L)…………………………….……...……….…..........22 • Change in Adjusted Net Income…………....….………...........................5 • Key Services and Produ
Slide 4: Financial Results – Consolidated
Table of Contents 1 Financial Results – Consolidated 2 Financial Results – by Segment 3 Non-Financial Information
Slide 5: Change in Operating Income
Consolidated Change in Operating Income (JPY B) (JPY B) FY2025 FY2026 YoY Q1 Q1 YoY +29.7% YoY +6.4% Revenue 489.6 553.9 +64.3 Increase in SG&A COGS 134.3 152.5 +18.2 +22.9 +18.2 Increase in SG&A 277.2 300.2 +22.9 COGS 101.1 95.0 -17.0 78.0 +64.3 Other income and Other income 17.0 - -17.0 expenses I
Slide 6: Change in Adjusted Net Income
Consolidated Change in Adjusted Net Income1 (JPY B) PPA amortization Other non- expense, operating income non-recurring Increase in adjusted EBITDA2 and expenses losses/gains (YoY +54.3%) +29.0 +4.9 -3.7 66.5 +1.2 +6.4 Improvement in equity +5.6 -4.1 Increase in D&A in losses of associates and joint
Slide 7: Change in Adjusted EPS
Consolidated Change in Adjusted EPS1 (JPY) PPA amortization Other non- expense, Increase in adjusted EBITDA2 operating income non-recurring and expenses losses/gains +4.9 (YoY +60.3%) +0.7 -0.5 9.7 +0.2 +1.2 Improvement in equity Increase in D&A in losses of +0.9 -0.4 associates and joint Non-contro
Slide 8: Equity in Profit/Losses of Associates and Joint Ventures
Consolidated Equity in Profit/Losses of Associates and Joint Ventures Equity in Profit/Losses of Associates and Joint Ventures Key Equity Method Equity Based in Business Affiliates Ratio1 (JPY B) Contents Q1'25 Q2'25 Q3'25 Q4'25 Q1'26 WEBTOON U.S. 23.1% • Operation of e-manga services 0.1 0.1 0.2 0.
Slide 9: Fair Market Value of Investment Assets
Consolidated Fair Market Value of Investment Assets1 (JPY B) Name of Company Fair Market Value Equity Ratio PayPay 489.8 31.0% ZOZO 533.3 52.0% ASKUL 50.1 46.9% Kurashiru 22.2 54.2% Demae-can 4.9 37.2% WEBTOON Entertainment 58.1 23.1% LINE Pay Taiwan 65.3 58.1% Total 1,224.1 - 1. As of June 30, 2026
Slide 10: Consolidation Impact of Subsidiaries (PPA)
Consolidated Consolidation Impact of Subsidiaries (PPA) ZOZO PayPay Annual Annual Amortization Amortization Amount Amortization Amount Amortization Item Period Item Period (JPY B) Amount (JPY B) Amount (Straight Line) (Straight Line) (JPY B) (JPY B) PPA 502.1 13.2 - PPA 51.3 5.1 - Customer base 18-2
Slide 11: Financial Indicators
Consolidated Financial Indicators CAPEX1 Net Cash Flow (Excluding Financial Business2/Financial Business)1 (JPY B) (JPY B) 60.6 Net Cash Flow Net Cash Flow (Excluding Financial Business) (Financial Business) 23.8 Consolidated dividend -58.7 42.4 Changes in debts, etc. +103.4 37.1 36.7 33.6 Financing
Slide 12: Financial Indicators
Consolidated Financial Indicators Interest-Bearing Debt & Net Interest-Bearing Debt1 Net Leverage Ratio3 (Excluding financial business2) (Excluding financial business2) (JPY B) (JPY B) 1,449.6 Net leverage ratio: maintain 3X or less 1,371.4 1,324.0 1,328.9 1,317.5 210.1 178.7 185.6 179.2 191.1 686.5
Slide 13: Consolidated Capital Allocation
Consolidated Capital Allocation FY2026-2028/Excluding Financial Business Cost of Equity (JPY B) 1,160.0 High Carryovers 100.0 CAPEX Approx. 30% Cost of Equity (last 12 months) 4.2 to 5.3% Operating CF Shareholder Approx. 40% 1,060.0 returns Predictability Aim for ROE 8% or more in FY2030, balancing
Slide 14: Key One-Time Gains/Losses (FY2025 Q1 – FY2026 Q1)
Consolidated Key One-Time Gains/Losses (FY2025 Q1 – FY2026 Q1) Impact on P/L Amount Period One-time Gains/Losses Outline Item Operating Adjusted Adjusted (JPY B) Income EBITDA EPS FY2026 Q1 N/A Impairment loss on investments in Other non-operating Q4 associates and joint ventures Impairment loss rel
Slide 15: Financial Results – by Segment
Table of Contents 1 Financial Results – Consolidated 2 Financial Results – by Segment 3 Non-Financial Information
Slide 16: I. Media Business
I. Media Business
Slide 17: Media Business Performance (P/L)
Media Business Performance (P/L) (JPY Million) FY2025 Q11,2,3,4 FY2026 Q11,2,3,4 YoY Revenue 177,566 182,097 +2.6% Advertising revenue 140,180 140,046 -0.1% Search advertising 46,152 43,019 -6.8% Account advertising 33,803 38,300 +13.3% Display advertising4 60,224 58,726 -2.5% User subscriptions, et
Slide 18: Change in Search Advertising
Media Business Change in Search Advertising Search Advertising Revenue/ %YoY Growth Factors Behind Change in Search Advertising Revenue (JPY B) (JPY B) LY Corporation’s -7.7% -6.8% -9.5% -11.3% websites % Growth -13.2% Product improvements, etc. 46.1 +0.7 43.0 46.1 44.6 45.0 43.1 43.0 -2.7 -1.1 5.0
Slide 19: Media Business Key Services and Products
Media Business Key Services and Products Item Breakdown Search advertising LY Ads Search Ads Account advertising LINE Official Account, LINE Promotion Sticker, LINE de Obo (Participate with LINE), LINE Flyer Display advertising - Programmatic advertising LY Ads Display Ads (Auction) Reservation adve
Slide 20: Media Business Key Advertising Products
Media Business Key Advertising Products Item Fee Calculation Placement Pages/Product Outline Type of Advertiser Search advertising ー Pay per click Yahoo! JAPAN Search LY Ads Search Ads Large enterprises/SMBs Pay per action Partner websites Account advertising ー Fixed monthly cost Messages delivered
Slide 21: Media Business Key Advertising Products
Media Business Key Advertising Products Item Fee Calculation Placement Pages Type of Advertiser Display advertising ー Programmatic ー Chat list LY Ads Pay per click LINE NEWS Large enterprises/SMBs Display Ads (Auction) Pay per view Yahoo! JAPAN News Yahoo! JAPAN Weather, etc. Shopping-related advert
Slide 22: II. Commerce Business
II. Commerce Business
Slide 23: Commerce Business Performance (P/L)
Commerce Business Performance (P/L) (JPY Million) FY2025 Q11,2,3 FY2026 Q11,2,3 YoY Revenue 215,946 242,896 +12.5% LY Corporation 41,145 75,609 +83.8% Shopping business 18,705 21,902 +17.1% Reuse business 12,395 17,417 +40.5% Services e-commerce 9,591 35,905 +274.4% Other 452 383 -15.2% ZOZO, ASKUL
Slide 24: Commerce Business Key Services and Products
Commerce Business Key Services and Products Item Breakdown LY Corporation ー Yahoo! JAPAN Shopping, LINE Brand Catalog, LINE GIFT, LINE SHOPPING1, Shopping business overseas e-commerce (LINE SHOPPING (Taiwan, Thailand), GIFTSHOP, MyShop) Reuse business Yahoo! JAPAN Auction, Yahoo! JAPAN Flea Market,
Slide 25: Revision to Disclosure Categories for E-Commerce Transaction Value
Commerce Business Revision to the Disclosure Categories for E-Commerce Transaction Value Revised the disclosure categories to align with the P/L and highlight the growth of each service, separating the categories into “LY Corporation” and “ZOZO and ASKUL” Until FY2025 Q4 FY2026 Q1 Onwards E-commerce
Slide 26: III. Strategic Business
III. Strategic Business
Slide 27: Strategic Business Performance (P/L)
Strategic Business Performance (P/L) (JPY Million) FY2025 Q11,2,3 FY2026 Q11,2,3 YoY Revenue 96,532 130,252 +34.9% PayPay (Consolidated)3 84,662 108,687 +28.4% Other fintech 11,870 21,565 +81.7% LINE Fintech (LINE Pay Taiwan, LINE Bank Taiwan, LINE Credit, LINE MAN (Payment)) 11,973 21,262 +77.6% Co
Slide 28: Financial Subsidiaries B/S
Strategic Business Financial Subsidiaries B/S PayPay (Consolidated)1 Other Fintech Business (JPY B) FY2025 Q4 FY2026 Q1 Change FY2025 Q4 FY2026 Q1 Change Assets 5,176.0 5,493.7 +317.7 911.3 977.3 +66.0 Cash and deposits 363.1 491.0 +127.9 116.4 123.6 +7.2 Other assets 4,812.9 5,002.6 +189.7 794.8 85
Slide 29: Capital Structure of Domestic Financial Businesses
Strategic Business Capital Structure of Domestic Financial Businesses1 Consolidated Subsidiary Intermediate Holding Company LY Corporation 100% Z Intermediate Holdings Corporation 50.0% B Holdings Corporation 54.6%2 PayPay Corporation 100% 100% 51.0% 100% 75.5% 75.2% PayPay Insurance LINE Securities
Slide 30: Strategic Business Key Services and Products
Strategic Business Key Services and Products Item Breakdown Fintech ― PayPay PayPay, PayPay Card, Credit Engine, PayPay Bank, PayPay Securities (Consolidated) PayPay Insurance, LINE Pay Taiwan, LINE Bank Taiwan, LINE Score, Other fintech LINE Pocket Money, LINE BITMAX1, LINE FX 1. LINE BITMAX termin
Slide 31: IV. International Business
IV. International Business
Slide 32: International Business Development
International Business International Business Development Strong presence across Asia, particularly in Taiwan and Thailand Majority of revenue generated from advertising, stickers, and game businesses on messenger platform International Business Revenue7 Taiwan 22 mil MAU1,3 (JPY B) (Population: 23.
Slide 33: Non-Financial Information
Table of Contents 1 Financial Results – Consolidated 2 Financial Results – by Segment 3 Non-Financial Information 32
Slide 34: Board of Directors and Capital Structure
Non-Financial Information Board of Directors and Capital Structure Independent outside directors comprising 66.6% of board, ensuring effective governance through separation of roles. Female directors represent 33.3% of board. Parent company is A Holdings Corporation, a joint venture between SoftBank
Slide 35: Remuneration Policy and Executive Remuneration Plan
Non-Financial Information Remuneration Policy and Executive Remuneration Plan Executive remuneration plan designed for medium/long-term rewards by setting high stock-based incentives Foster a sense of shared interest with shareholders, intended to enhance corporate value through sustainable growth R
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 LY Corporation (Company) and its consolidated subsidiaries and affiliates. The Company cautions you that a number of important factors c
Slide 37: WOW Our Users!
LY Corporation WOW Our Users!