Slide 1: LY Corporation Earnings FY2024 Full Year & Q4
LY Corporation Earnings FY2024 Full Year & Q4 May 7, 2025 Security Code: 4689
Slide 2: FY2024 Full Year & Q4 Earnings Highlights
FY2024 Full Year & Q4 Earnings Highlights Recorded a double-digit growth in adjusted EBITDA (FY2024). 1 - FY2024 Full Year Result: Consolidated revenue JPY1.91 T (YoY+5.7%) Consolidated adjusted EBITDA JPY 470.8 B (YoY+13.5%) Three focus areas for FY2025: 1. Transform LINE Official Account and LINE
Slide 3: Table of Contents
Table of Contents 1 Financial Results - Consolidated 2 Financial Results – by Segment 3 FY2025 Guidance 4 FY2025 Initiatives
Slide 4: Table of Contents: Financial Results - Consolidated
Table of Contents 1 Financial Results - Consolidated 2 Financial Results – by Segment 3 FY2025 Guidance 4 FY2025 Initiatives
Slide 5: Consolidated FY2024 Full Year – Performance
Consolidated FY2024 Full Year – Performance Revenue and profit growth in all three segments. Adjusted EBITDA +13.5% YoY on a consolidated basis Segment Item FY2023 FY2024 % YoY Change Revenue JPY1,814.6 B JPY1,917.4 B +5.7 % Adjusted EBITDA JPY414.9 B JPY470.8 B +13.5 % Consolidated Adjusted EPS1 JP
Slide 6: Consolidated – Performance
Consolidated Consolidated – Performance Substantial improvement in profitability post merger, leading to strong profit growth Revenue/ %YoY Growth Adjusted EBITDA/ %YoY Growth Adjusted EBITDA Margin (JPY B) (JPY B) +30.0% +24.7% +13.5% +12.4% +0.3% % Growth +6.7% +8.5% +5.7% 470.8 % Growth 1,917.4 4
Slide 7: Consolidated – Performance: Change in Adjusted EBITDA
Consolidated Consolidated – Performance Increase in product revenue driving profit growth. Cost optimization stabilized Change in Adjusted EBITDA1 Revenue: +JPY102.8 billion • Media (+JPY29.4 B): Growth in account advertising. (JPY B) • Commerce (+JPY21.2 B): Growth in ZOZO, ASKUL, Yahoo! Increase i
Slide 8: Consolidated – Total Advertising Revenue
Consolidated Consolidated – Total Advertising Revenue Media ads recorded stable growth. Shopping ads recovered substantially Consolidated – Total Advertising Revenue¹ Consolidated – Total Advertising Revenue % YoY Growth¹ (JPY B) 638.0 606.4 591.4 64.9 Commerce1 50.8 55.5 +27.6% Commerce1 +2.1% +1.7
Slide 9: Consolidated – E-Commerce Transaction Value
Consolidated Consolidated – E-Commerce Transaction Value Yahoo! JAPAN Shopping and travel as growth drivers Consolidated – E-Commerce Transaction Value1 Consolidated – E-Commerce Transaction Value % YoY Growth1 (JPY B) 4,376.6 4,196.7 +9.4% Domestic Services 1,750.6 Domestic Shopping +4.8% Domestic
Slide 10: Share Repurchase and Cancellation of Treasury Shares
Consolidated Share Repurchase and Cancellation of Treasury Shares Share repurchase of up to JPY150.0 B announced. Continued efforts for improving capital efficiency • Increase adjusted EPS and improve adjusted ROE by reducing number of outstanding shares and shareholders’ equity. Purpose/Policy • Di
Slide 11: Capital Allocation, Adjusted ROE trend
Consolidated Capital Allocation, Adjusted ROE trend Improve capital efficiency and quickly and steadily increase a positive equity spread Capital Allocation Policy Adjusted ROE2 (Cumulative Approximate Value for FY2023-2025/ Excluding Financial Business) (JPY B) 1,130.0 1,130.0 5.7% Merger effect/ 6
Slide 12: Table of Contents: Financial Results – by Segment
Table of Contents 1 Financial Results - Consolidated 2 Financial Results – by Segment 3 FY2025 Guidance 4 FY2025 Initiatives
Slide 13: Media Business – Performance
Media Business Media Business – Performance Highly profitable account ads led to growth in both adjusted EBITDA and margin Revenue/ % YoY Growth1, 2, 3 Adjusted EBITDA/ % YoY Growth1, 2, 3 Adjusted EBITDA Margin1, 2, 3 (JPY B) (JPY B) +4.2% +11.6% +1.0% % Growth +6.9% % Growth 731.6 38.8% 695.1 702.
Slide 14: Media Business – Revenue
Media Business Media Business – Revenue Strong performance in account ads (YoY+18.9%) and digital contents Revenue Consolidated total advertising revenue: (JPY B) +JPY17.8 billion 731.6 +4.2% 702.1 Search advertising: +JPY1.5 billion 575.6 +3.2% • Own website increased +2.4% YoY, while partners’ web
Slide 15: Media Business – Performance: Change in Adjusted EBITDA
Media Business Media Business – Performance Growth in account ads and controlled SG&A resulting in profit growth Change in Adjusted EBITDA1 Cost of sales: +JPY5.6 billion (JPY B) • Increased mainly in ebookjapan, search, dely, and LINE Increase in revenue Decrease in SG&A (YoY +11.6%) STICKERS. +29.
Slide 16: Media Business Account Advertising
Media Business Account Advertising Strong revenue growth owing to increase in both pay-as-you-go billing and no. of paid accounts No. of Paid LINE Official Accounts (Global/Japan)1 Revenue (Thousands) (JPY B) 440 +22.3% 37 +18.9% 386 +18.3% Pay-As-You-Go 34 Billing Accounts1 125.1 273 105.2 261 237
Slide 17: Commerce Business – Performance
Commerce Business Commerce Business – Performance Adjusted EBITDA margin improved through strategic focus on key subsidiaries 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% % Growth +3.6% % Growth 827.0 848.3 792.8 148
Slide 18: Commerce Business – Performance: Change in Adjusted EBITDA
Commerce Business Commerce Business – Performance Profit increased due to product growth, despite absence of one-time gain (JPY9.4 B) recorded last fiscal year Factors of Change in Adjusted EBITDA1 Revenue: +JPY21.2 billion (JPY B) • Increase in ZOZO, ASKUL, Yahoo! JAPAN Shopping, Increase in revenu
Slide 19: Strategic Business – Performance
Strategic Business Strategic Business – Performance Revenue exceeded JPY300.0 billion due to PayPay consolidated 1 growth. Margin surged to 15.1% Revenue/ %YoY Growth2 Adjusted EBITDA2,3 Adjusted EBITDA Margin2,3 (JPY B) (JPY B) +51.0% 51.5 +17.7% % Growth 15.1% 341.2 4.0% 289.9 11.5 192.0 Revenue -
Slide 20: Strategic Business – Revenue
Strategic Business Strategic Business – Revenue Strong growth across all products Revenue PayPay Consolidated1: +JPY37.1 billion (JPY B) • Revenue from payment fees increased along with 341.2 +17.7% growth of consolidated GMV as a result of marketing campaigns and other factors, while interest reven
Slide 21: Strategic Business – Performance: Change in Adjusted EBITDA
Strategic Business Strategic Business – Performance Profits increased 4.5x, driven by business growth and cost optimization efforts Change in Adjusted EBITDA1 Cost of sales: +JPY3.4 billion (JPY B) • Increased mainly in PayPay Bank due to higher procurement Improvement in SG&A costs resulting from i
Slide 22: PayPay Consolidated – Business Overview
Strategic Business PayPay Consolidated1 – Business Overview Margin grew to 18.3%, driven by GMV growth and improved profitability No. of Registered Users2 GMV (Consolidated)3,4 Revenue (Consolidated)5 EBITDA (Consolidated)6 (Mil) (JPY T) (JPY B) (JPY B) 68.38 15.4 248.8 45.5 63.04 56.64 211.5 12.5 1
Slide 23: Table of Contents: FY2025 Guidance
Table of Contents 1 Financial Results - Consolidated 2 Financial Results – by Segment 3 FY2025 Guidance 4 FY2025 Initiatives
Slide 24: Preparation for IPO underway
PayPay’s IPO 1 Preparation for IPO underway 2 Exploring U.S. market as a potential listing destination 3 LY Corporation remains committed to PayPay’s business and enterprise value growth This document is intended for the disclosure of the FY2024 performance of LY Corporation and does not constitute
Slide 25: FY2025 Consolidated Full Year Guidance
FY2025 Consolidated Full Year Guidance Expecting high-single digit growth in both revenue and profit on a consolidated basis Segment Item FY2024 FY2025 YoY Revenue JPY1.91 T Approx. JPY2.10 T Approx. +9% Adjusted EBITDA JPY470.8 B JPY500.0 to 510.0 B +6.2 to 8.3% Consolidated Adjusted EPS1 JPY24.9 J
Slide 26: Guideline for Improving Capital Efficiency
Guideline for Improving Capital Efficiency Maximize FCF and implement shareholder returns while balancing growth investments • Share buybacks Shareholder • Stable dividends with a focus on profit return growth Growth • Aim for a cumulative total payout ratio of investments Share buyback 70% or more
Slide 27: Table of Contents: FY2025 Initiatives
Table of Contents 1 Financial Results - Consolidated 2 Financial Results – by Segment 3 FY2025 Guidance 4 FY2025 Initiatives
Slide 28: Recap of FY2024
Recap of FY2024 Achieved FY2024 set goals, resulting in adjusted EBITDA surpassing initial guidance by JPY30.0 to 40.0 billion FY2024 Policies/Goals Results • Achieved profit growth exceeding guidance, driven by product growth and Performance/ improvement in profitability. shareholder returns • Rein
Slide 29: Strategic Outlook/Business Positioning
Strategic Outlook/Business Positioning Drive further growth of existing businesses alongside integration of AI Agents as part of a new initiative FY2025 FY2026 FY2027 onwards • Enhance features (optional billing) LINE Official Account Aim to start monetizing LINE MINI App from FY2026 • Target high g
Slide 30: FY2025 Initiatives: LINE Official Account/LINE MINI App
FY2025 Initiatives 1 LINE Official Account/LINE MINI App 2 Digital Financial Platform Centered Around PayPay 3 Implementation of AI Agents 29
Slide 31: FY2025 Initiatives: Digital Financial Platform Centered Around PayPay
FY2025 Initiatives 1 LINE Official Account/LINE MINI App 2 Digital Financial Platform Centered Around PayPay 3 Implementation of AI Agents 30
Slide 32: LINE Official Account/LINE MINI App – Potential Market
1. LINE Official Account/LINE MINI App – Potential Market Vast potential market for LINE Official Account and LINE MINI App Potential Market Sales Promotion Market1 Digital Transformation Market1 JPY15.0 T FY2024 Revenue JPY0.1 T JPY7.7 T High revenue growth anticipated from FY2025 onwards for Monet
Slide 33: LINE Official Account/LINE MINI App – Business Platform
1. LINE Official Account/LINE MINI App – Business Platform Provide a cross-functional business platform through development of Japan’s largest business ID LINE Ads Japan’s largest business ID Membership card (Scheduled to launch in FY2025) Yahoo! JAPAN Ads Mobile order Store information Yahoo! JAPAN
Slide 34: LINE Official Account/LINE MINI App – Infrastructure Enhancement Initiatives
1. LINE Official Account/LINE MINI App – Infrastructure Enhancement Initiatives Promote further strengthening of service base in FY2025 Sales Effort for Measures to Increase User Usage Measures to Uplift ARPA Digital Transformation Solutions Strengthen sales of MINI App focused on dining Reinforce u
Slide 35: FY2025 Initiatives: Implementation of AI Agents
FY2025 Initiatives 1 LINE Official Account/LINE MINI App 2 Digital Financial Platform Centered Around PayPay 3 Implementation of AI Agents 34
Slide 36: PayPay – Cashless Payment Market
2. Digital Financial Platform Centered Around PayPay – Cashless Payment Market Continued market expansion is expected, with PayPay’s share continuing to grow PayPay’s Market Share Relative to Japan’s Cashless Payment Ratio1 PayPay Consolidated3 EBITDA4 No. of Cashless Payments Made in Japan2 No. 1 m
Slide 37: PayPay – Service Growth
2. Digital Financial Platform Centered Around PayPay – Service Growth Leverage PayPay’s platform to further accelerate growth of each services PayPay Card – Transaction Volume/No. of Active Cards Issued PayPay Bank – Deposit Balance/No. of Bank Accounts 13.81 No. of Active 8.94 No. of PayPay New Pay
Slide 38: PayPay Ecosystem
2. Digital Financial Platform Centered Around PayPay – PayPay Ecosystem PayPay to evolve from a payment app to a digital financial platform No. of accounts No. of registered users 8.94 MM1 Digital salary 68.38 MM1 No. of securities Cumulative no. of accounts subscriptions 1.37 MM1 8.94 MM1 No. of ac
Slide 39: FY2025 Initiatives: AI Agents
FY2025 Initiatives 1 LINE Official Account/LINE MINI App 2 Digital Financial Platform Centered Around PayPay 3 Implementation of AI Agents 38
Slide 40: Promotion of AI Agent Implementation – Evolution of IT
3. Promotion of AI Agent Implementation – Evolution of IT Entering an era where each individual is paired with their own personalized AI agent 1990s 2010s 2020s Internet Smartphone Generative AI Search Messenger/social media AI agent LY Corporation 39
Slide 41: AI Agent Implementation – FY2025 Initiatives
3. Promotion of AI Agent Implementation – FY2025 Initiatives Full-scale deployment of AI agents in consumer-facing services Implementation in services: 44 cases1 From FY2025 LINE AI Yahoo! JAPAN Shopping Gen AI-proposed bargain AI agentization Chat-style gen AI service days (β ver.) Generated texts
Slide 42: AI Agent Implementation – Competitiveness
3. Promotion of AI Agent Implementation – Competitiveness As an AI Agent Unrivaled leader in users, physical contact points, and content Users1 Contact Points (Stores)1 No. of accounts3 MAU (Japan) 1.20 MM 98.00 MM LY Corporation AI Agent Available locations4 over 10 MM DUB2 Content 107.00 MM No. of
Slide 43: AI Agent Implementation – Value Proposition
3. Promotion of AI Agent Implementation – Value Proposition AI agents that facilitate all areas of day-to-day life End-to-end Complete up to Personalization coverage point of of daily life conversion Conduct comprehensive analysis Accompanying users in various Carry out tasks like reservations, and
Slide 44: AI agentization of All Services
3. Promotion of AI Agent Implementation – AI agentization of All Services Aim to be No. 1 in AI-based era by leveraging AI across not only home service but also to a wide array of services Home Services1 Service Agents1 Local Shopping Messenger ・・・ 1. Interface for each service agent is currently un
Slide 45: 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 46: Cautionary Statement Regarding the Tender Offer
Cautionary Statement Regarding the Tender Offer The tender offer mentioned in this presentation material is not directly or indirectly conducted within the United States or aimed at the United States, does not use the United States Postal Service or any methods or means of interstate commerce or int
Slide 47: LY Corporation
LY Corporation Create an amazing life platform that brings WOW! to our users.