Ly Corporation · TSE:4689
Ly — Q3 FY2023 Earnings Presentation
37 slides from Ly's earnings presentation, Feb 6, 2024
Slide 1: LY Corporation Business Results FY2023 Q3 Appendix
LY Corporation Business Results FY2023 Q3 Appendix February 6, 2024 Security Code: 4689
Slide 2: FY2023 Q3 Consolidated Business Results
FY2023 Q3 Consolidated Business Results
Slide 3: FY2023 Q3 Factors Behind Change in Operating Income
Entire Group FY2023 Q3 Factors Behind Change in Operating Income (JPY B) FY2023 Q3 YoY Difference YoY Major Factors of Change1 • PayPay (Consolidated) +8.5 • ASKUL (Consolidated) +5.5 Revenue 475.0 +21.3 +4.7% • ZOZO +4.6 • Ikyu +1.4 Cost of sales 130.8 -1.2 -0.9% • ASKUL (Consolidated) +2.7 • LY Co
Slide 4: FY2023 Q3 Factors Behind Change in Net Income Attributable to Owners of the Parent
Entire Group FY2023 Q3 Factors Behind Change in Net Income Attributable to Owners of the Parent (JPY B) FY2023 Q3 YoY Difference YoY Major Factors of Change Operating income 58.1 -132.6 -69.5% Other non-operating income 1.3 +0.5 +67.7% • Impairment loss from equity method investment in Other non-ope
Slide 5: FY2023 Q3 Equity in Losses of Associates and Joint Ventures
Entire Group FY2023 Q3 Equity in Losses of Associates and Joint Ventures 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 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 U.S. 28.7% Entertainment services 0
Slide 6: Business Status of Equity-Method Affiliates
Entire Group Business Status of Equity-Method Affiliates • Many of the equity-method affiliates are moving into a monetizing phase from FY2023. • Aim to achieve profitability in international business and global fintech business in around FY2023-FY2025. (Taiwan) (Thailand) (Indonesia) • No. of app d
Slide 7: Impact from Consolidation of Subsidiaries (PPA)
Entire Group Impact from Consolidation of Subsidiaries (PPA) ZOZO PayPay Annual Amortization Annual Amortization Amount Amortization Period Amount Amortization Period Item Amount Item Amount (JPY B) (Straight Line) (JPY B) (Straight Line) (JPY B) (JPY B) PPA 502.1 13.2 - PPA 51.3 5.1 - Customer 322.
Slide 8: FY2023 Q3 Consolidated Statement of Financial Position
Entire Group FY2023 Q3 Consolidated Statement of Financial Position (JPY B) FY2023 Q2 FY2023 Q3 Difference Assets 8,699.3 8,983.7 +284.3 Cash and cash equivalents 1,387.3 1,525.7 +138.4 Trade and other receivables 622.6 689.2 +66.6 Loans in credit card business 663.0 760.6 +97.5 Investment securitie
Slide 9: Financial Index: CAPEX and Net Cash Flow
Entire Group Financial Index 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) 59.6 Consolidated dividend - 56.1 30.7 50.7 Changes in debts, etc. - 92.5 45.0 21.2 Operating
Slide 10: Financial Index: Interest-Bearing Debt and Net Leverage Ratio
Entire Group Financial Index 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 1,451.5 1,465.8 1,408.1 1,427.7 Net leverage ratio: maintain 3X or less 1,388.7 800.0 201.7 229.2 2.50 231.
Slide 11: Change in Reporting Sub-Segments
Entire Group Change in Reporting Sub-Segments • Sub-segments have been changed from FY2023 Q3 to accommodate merger and growth phase of each business. Until FY2023 Q2 From FY2023 Q3 • Display ads • Account ads Search ads ー LINE Ads • Other LINE Ads Account ads ー Media Yahoo! JAPAN • Search ads • Dis
Slide 12: Media Business
Media Business
Slide 13: Business Results (P/L): Media Business
Media Business Business Results (P/L): Media Business (JPY Million) FY2022 Q31, 2, 3 FY2023 Q31,2,3 YoY Revenue 178,938 182,256 +1.9% Advertising Revenue 138,035 143,024 +3.6% Search advertising 48,786 48,362 -0.9% Account advertising 22,898 27,854 +21.6% Display advertising4 66,350 66,807 +0.7% Oth
Slide 14: LINE Official Account
Media Business LINE Official Account • Revised membership plan fees in June 2023. Previous Membership Plans New Membership Plans Membership No. of Free Cost per Additional Membership No. of Free Cost per Additional Fixed Monthly Fee1 Fixed Monthly Fee1 Plans Messages Message 1 Plans Messages Message
Slide 15: Major Services and Products of Media Business Segment
Media Business Major Services and Products of Media Business Segment Item Breakdown Search advertising Yahoo! JAPAN Ads “Search advertising” Account advertising LINE Official Account, LINE Promotion Sticker, LINE de Obo (Participate with LINE), LINE Flyer, etc. Display advertising - Yahoo! JAPAN Ads
Slide 16: Major Advertising Products (LINE Ads)
Media Business Major Advertising Products (LINE Ads) Item Fee Calculation Placement Pages/Product Outline Type of Advertiser Account ads - Fixed monthly cost Messages delivered to users who have friended Major corporations/SMBs/Local LINE Official Account Pay-as-you-go the account governments Fixed
Slide 17: Major Advertising Products (Yahoo! JAPAN Ads)
Media Business Major Advertising Products (Yahoo! JAPAN Ads) 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” Inte
Slide 18: Commerce Business
Commerce Business
Slide 19: Business Results (P/L): Commerce Business
Commerce Business Business Results (P/L): Commerce Business (JPY Million) FY2022 Q31, 2, 3 FY2023 Q31, 2, 3 YoY Revenue 211,632 217,403 +2.7% LY Corporation 43,468 39,871 -8.3% Shopping business 25,646 22,994 -10.3% Reuse business 10,614 9,517 -10.3% Services e-commerce 7,113 7,070 -0.6% Other 94 28
Slide 20: Major Services and Products of Commerce Business Segment
Commerce Business Major Services and Products of Commerce Business Segment Item Breakdown LY Corporation - Yahoo! JAPAN Shopping, LINE SHOPPING, LINE FRIENDS, LINE GIFT, MySmartStore, Yahoo! JAPAN Mart by Shopping business ASKUL, LIVEBUY, overseas e-commerce (LINE SHOPPING (Taiwan, Thailand), GIFTSH
Slide 21: Definition of E-Commerce Transaction Value
Commerce Business KPI - Definition of E-Commerce Transaction Value Item Major Services/Products E-commerce transaction value - Domestic merchandise - Yahoo! JAPAN Shopping, ZOZOTOWN, LOHACO, Charm, LINE SHOPPING, LINE GIFT, LINE FRIENDS, Shopping business MySmartStore, Yahoo! JAPAN Mart by ASKUL, LI
Slide 22: Strategic Business
Strategic Business
Slide 23: Major KPIs of PayPay
Strategic Business Major KPIs of PayPay Registered Users1/MTU2 (Standalone) No. of PayPay Payments3 (Standalone) (Million) (B) 61.45 1.584 1.612 59.95 58.37 1.519 56.64 54.00 1.392 1.368 30.76 31.82 30.33 30.21 28.19 M T U YoY +17.8% Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 1. No.
Slide 24: Capital Structure of Domestic Financial Businesses
Strategic Business Capital Structure of Domestic Financial Businesses1 Consolidated Subsidiary Equity-Method Affiliate Intermediate Holding Company LY Corporation 100% 100% 100% Z Financial Z Intermediate LINE Pay Corporation Corporation Holdings Corporation 50% B Holdings Corporation 46.6% 50.1% 51
Slide 25: Major KPIs of Global Fintech Business
Strategic Business Major KPIs of Global Fintech Business LINE Bank (Taiwan) – No. of Users LINE BK (Thailand) – No. of Users LINE Bank (Indonesia) – No. of Users (Million) (Million) (Million) 1.72 6.34 0.82 1.65 6.08 1.57 5.72 1.48 5.44 0.70 5.25 1.39 0.62 0.55 0.51 YoY +24.1% YoY +20.9% YoY +62.0%
Slide 26: Business Results (P/L): Strategic Business
Strategic Business Business Results (P/L): Strategic Business (JPY Million) FY2022 Q31, 2 FY2023 Q31, 2 YoY Revenue 65,174 76,593 +17.5% Fintech 64,869 76,527 +18.0% PayPay (Consolidated)3 46,993 55,505 +18.1% PayPay Bank4 10,437 11,702 +12.1% Other fintech (LINE Fintech, etc.) 7,438 9,319 +25.3% Ot
Slide 27: PayPay Corporation – Consolidated Business Results
Strategic Business PayPay Corporation – Consolidated Business Results Consolidated Revenue1/EBITDA2 (IFRSs) Consolidated Statement of Financial Position (IFRSs) (JPY B) (JPY B) 55.6 FY2023 Q2 FY2023 Q3 Difference 51.4 46.8 48.0 46.1 Assets 1,625.1 1,878.8 +253.6 Cash and deposits 473.9 604.3 +130.3
Slide 28: PayPay Bank Corporation – Business Results
Strategic Business PayPay Bank Corporation – Business Results Revenue/Operating Income (Non-Consolidated IFRS)1 Statement of Financial Position (JGAAP)1 (JPY B) (JPY B) 11.9 FY2023 Q2 FY2023 Q3 Difference 10.9 10.3 10.2 10.2 Assets 1,908.7 2,058.4 +149.7 Cash and cash equivalents 258.6 363.6 +105.0
Slide 29: Major Services and Products of Strategic Business Segment
Strategic Business Major Services and Products of Strategic Business Segment Item Breakdown Fintech - PayPay PayPay, PayPay Card (Consolidated) PayPay Bank - PayPay Asset Management, PayPay Insurance, LINE Pay, LINE Score, LINE Pocket Money, Other fintech LINE BITMAX, LINE FX, DOSI, etc. Other Other
Slide 30: International Business
International Business
Slide 31: International Business Development
International Business International Business Development • 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 Revenue6 Taiw
Slide 32: Non-Financial Information
Non-Financial Information
Slide 33: Remuneration Policy and Executive Remuneration Plan
Non-Financial Information Remuneration Policy and Executive Remuneration Plan • 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, aiming to
Slide 34: User Base
Non-Financial Information User Base Yahoo! JAPAN – No. of Monthly Logged-in User IDs LINE - Monthly Active Users (Million) (Million) December 2023 Global MAU1：195 54.8 54.9 55.9 176 178 178 179 180 54.3 54.2 7 7 6 6 6 53 54 54 55 55 22 22 22 22 22 94 95 95 96 96 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'22 Q
Slide 35: Integrated Report Portal
Non-Financial Information Integrated Report Portal • Financial/non-financial information useful for investment decisions are kept up to date. Management Message • Message from the CEO • Message from the CFO Vision and Value Creation Growth Strategy • Mission • Growth Strategy • Financial Information
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: Create an amazing life platform that brings WOW! to our users.
Create an amazing life platform that brings WOW! to our users.