Slide 1: LY Corporation Business Results FY2024 Q1
LY Corporation Business Results FY2024 Q1 August 2, 2024 Security Code: 4689
Slide 2: FY2024 Q1 Business Results - Summary
FY2024 Q1 Business Results - Summary 1 Security measures are steadily being implemented. Repurchasing own shares (JPY 150.0 B) to maintain listing in the Prime Market and 2 for shareholder return. Business performance starting off smoothly. – Entire Group revenue grew YoY+7.6%; consolidated adjusted
Slide 3: Table of Contents
Table of Contents 1 Consolidated Business Results – Entire Group 2 Business Results/Topics – By Segment
Slide 4: Consolidated Business Results – Entire Group
Table of Contents 1 Consolidated Business Results – Entire Group 2 Business Results/Topics – By Segment
Slide 5: Acquisition and Cancellation of Own Shares
Acquisition and Cancellation of Own Shares • Repurchasing own shares (JPY 150.0 B) to maintain listing in the Prime Market and for shareholder return. Outline Purpose/Policy • Raise the tradable share ratio and maintain listing in the Method Tender offer Prime Market based on the tender agreement wi
Slide 6: Entire Group FY2024 Q1 – Results
Entire Group FY2024 Q1 – Results • Both revenue and income increased ― on track to meet full-year guidance. Segment Item FY2024 Q1 % YoY Change Progress against Guidance Revenue JPY463.0 B +7.6 % 23.9 % Entire Group Adjusted EBITDA JPY121.7 B +21.7 % 27.7-28.3 % Adjusted EPS JPY 3.58 -25.6 % 23.4-25
Slide 7: Entire Group – Performance
Entire Group Entire Group – Performance • Revenue and adjusted EBITDA set a new Q1 record as a result of product growth and structural reforms. Revenue/YoY Growth Rate Adjusted EBITDA/YoY Growth Rate Adjusted EBITDA Margin (JPY B) (JPY B) +11.9% +41.6% +10.2% +28.1% +15.6% +17.4% +21.7% +7.8% +7.6%
Slide 8: Entire Group FY2024 Q1 Entire Group – Performance
Entire Group FY2024 Q1 Entire Group – Performance • Business growth drove increase in revenue and profit, despite increase in SG&A accompanying product reinforcements. Factors of Change in Adjusted EBITDA1 Revenue: +JPY32.5 B • Media (+JPY7.5 B): Growth in account advertising (JPY B) • Commerce (+JP
Slide 9: Entire Group Adjusted EPS
Entire Group Adjusted EPS • Core performance value excluding one-time factors improved. Further improvement anticipated with the share buyback. Adjusted EPS1 FY2024 Q1 Factors behind YoY change (JPY) • Core performance value, excluding Webtoon Entertainment’s gain on change in equity interest record
Slide 10: Business Results/Topics – By Segment
Table of Contents 1 Consolidated Business Results – Entire Group 2 Business Results/Topics – By Segment
Slide 11: Media Business – Performance
Media Business Media Business – Performance • Account advertising drove revenue growth; cost controls led to margin improvement. Revenue/YoY Growth Rate1, 2, 3 Adjusted EBITDA/YoY Growth Rate1, 2, 3 Adjusted EBITDA Margin1, 2, 3 (JPY B) (JPY B) +4.1% +4.4% +20.0% +1.7% +1.9% Growth +11.2% +14.2% -0.
Slide 12: Media Business – Revenue
Media Business Media Business – Revenue • Account advertising grew over 20% YoY; making a smooth start toward achieving full-year guidance. Revenue Search advertising: +JPY300 million (JPY B) • Revenue from partners’ websites decreased YoY, but LY Corporation’s websites grew by +6.5% YoY. 177.6 +4.4
Slide 13: Media Business – Performance
Media Business Media Business – Performance • Profitability improved as a result of revenue growth and continued cost optimization mainly around business commissions. Factors of Change in Adjusted EBITDA1 Cost of sales: +JPY100 million (JPY B) • Cost of sales remained flat as a result of improved re
Slide 14: Media Business Account Advertising
Media Business Account Advertising • No. of paid accounts is increasing steadily, and revenue of account advertising maintained a growth rate exceeding 20%. No. of Paid LINE Official Accounts (Global/Japan)1 Revenue (Thousands) (JPY B) 397 +25.4% 375 386 +22.9% 353 +21.6% +21.4% +18.8% 315 243 27.8
Slide 15: Media Business LYP Premium
Media Business LYP Premium • Implementing measures to convert new members into paid members and improve retention rates. Yahoo! JAPAN Premium/LYP Premium1 Membership Product Reinforcement Measures5 (Mil) LINE Puri Use of multiple profiles Real-time backup 24.44 23.63 23.52 23.47 1.21 23.65 0.18 0.13
Slide 16: Revamping of Yahoo! JAPAN App
Media Business Revamping of Yahoo! JAPAN App • No. of sessions increased by promoting the use of multiple domains. Redesigned Tab Structure Effect Home Trend Follow Assist No. of sessions (number of visits) by users of the Launched Launched Launched new tabs largely increased compared to non-users.
Slide 17: Commerce Business – Performance
Commerce Business Commerce Business – Performance • Revenue of subsidiaries and Yahoo! JAPAN Shopping increased; one-time gain recorded in adjusted EBITDA. Revenue/YoY Growth Rate1, 2, 3 Adjusted EBITDA/YoY Growth Rate1, 2, 3 Adjusted EBITDA Margin1, 2, 3 (JPY B) (JPY B) +9.7% +49.0% +5.8% +27.5% +1
Slide 18: Commerce Business – Transaction Value
Commerce Business Commerce Business – Transaction Value • Domestic shopping and ASKUL grew, and a strong growth in travel drove domestic services to a double-digit growth. Entire Group – E-Commerce Transaction Value1 Domestic shopping business: +JPY22.9 billion (JPY B) • ZOZO and ASKUL steadily incr
Slide 19: Commerce Business – Performance
Commerce Business Commerce Business – Performance • Income increased as a result of revenue growth of subsidiaries and Yahoo! JAPAN Shopping, offsetting the increased SG&A. Factors of Change in Adjusted EBITDA1 Cost of sales: +JPY4.1 B (JPY B) • Increased due to revenue growth in ZOZO, ASKUL, and Ya
Slide 20: Yahoo! JAPAN Shopping
Commerce Business Yahoo! JAPAN Shopping • Transaction value of Yahoo! JAPAN Shopping grew as a result of a review of sales promotional measures and improvement in retention rate. Sales Promotional Measures for LYP Premium Yahoo! JAPAN Shopping Transaction Value Improvement in Retention Rate Members
Slide 21: Strategic Business – Performance
Strategic Business Strategic Business – Performance • Income increasing steadily as a result of growth driven by PayPay Consolidated and improved profitability in other fintech businesses. Revenue/YoY Growth Rate1, 2 Adjusted EBITDA1, 2 Adjusted EBITDA Margin1, 2 (JPY B) (JPY B) +110.6% +1,348.7% Gr
Slide 22: Strategic Business – Revenue
Strategic Business Strategic Business – Revenue • In addition to PayPay Consolidated, PayPay Bank and LINE Credit contributed to revenue growth. Revenue PayPay Consolidated: +JPY9.0 billion (JPY B) • Revenue from payment fees increased due to the expansion in consolidated GMV, and interest revenue i
Slide 23: Strategic Business – Performance
Strategic Business Strategic Business – Performance • One-time expense due to termination of LINE Pay in Japan was offset by revenue growth, resulting in a significant increase in income. Factors of Change in Adjusted EBITDA1 Cost of sales: +JPY 0 B (JPY B) Increase in revenue SG&A: +JPY10.0 B +13.6
Slide 24: PayPay Business Overview
Strategic Business PayPay Business Overview • Quarterly operating income recorded profitability for the first time as a result of top-line growth and improved profitability. No. of Registered Users¹ GMV (Consolidated) 2, 3 Revenue (Consolidated)4 EBITDA (Consolidated)5 (Mil) (JPY T) (JPY B) (JPY B)
Slide 25: Summary: Shifting gears to achieve medium- to long-term business growth
Summary 1 Security measures are steadily being implemented. Repurchasing own shares to maintain listing in the Prime Market and for 2 shareholder return. 3 Business performance starting off smoothly. 4 Reinforcing products for top-line growth. Shifting gears to achieve medium- to long-term business
Slide 26: 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 27: Create an amazing life platform that brings WOW! to our users.
Create an amazing life platform that brings WOW! to our users.