Ly Corporation · TSE:4689
Ly — Z Holdings — FY2021 Earnings Presentation
24 slides from Ly's earnings presentation, Apr 28, 2022
Slide 1: FY2021 Full Year & Q4 Business Results
Security Code: 4689 Z Holdings Corporation Business Results FY2021 Full Year & Q4 April 28, 2022
Slide 2: FY2021 Full-Year Business Results – Topics
FY2021 Full-Year Business Results – Topics Revenue: JPY1.56 T (YoY +30.0%) / Adjusted EBITDA: JPY331.4 B (YoY +12.4%), both reaching record high. Expect to increase both revenue and adjusted EBITDA in FY2022, while making medium- to long-term investments. • LINE’s full-year revenue exceeded JPY300 B
Slide 3: FY2021 Summary
FY2021 Summary Whole Group • Collaborations leveraging the assets of Group companies began in each area, resulting in cost synergies of JPY10 B and promotion of organizational/business restructuring. Segment Outcomes in FY21 • Reinforcement of data governance throughout the ZHD Group • Final report
Slide 4: FY2021 Consolidated Business Results
FY2021 Consolidated Business Results Whole Group • Performance landed nearly at the same level as the guidance revised in Q3. Both full-year revenue and adjusted EBITDA reached a record high Segment Item FY2020 FY2021 YoY Revenue JPY1.20 T JPY1.56 T +30.0% Whole Group Adjusted EBITDA JPY294.8 B JPY3
Slide 5: Table of Contents
Table of Contents Whole Group 1 FY2021 Full-Year Business Results 2 FY2022 Focus Areas/Strategic Investment/Business Results Forecast
Slide 6: FY2021 Full-Year Business Results
Table of Contents Whole Group 1 FY2021 Full-Year Business Results 2 FY2022 Focus Areas/Strategic Investment/Business Results Forecast
Slide 7: FY2021 Full-Year Consolidated Business Results
FY2021 Full-Year Consolidated Business Results Whole Group • Achieved increases in full-year revenue/adjusted EBITDA due to positive impacts from integration with LINE, steady growth of advertising business, etc. Item FY2020 FY2021 YoY Revenue & Adjusted EBITDA1 (Adjusted EBITDA Margin) (JPY B) Reve
Slide 8: FY2021 Full-Year Consolidated Business Results, LINE
｜ FY2021 Full-Year Consolidated Business Results1, 2 LINE • Growth driven by advertising business. Full-year revenue exceeded JPY300 B for the first time. • Profitability improved due to enhanced investment discipline. Achieved full-year operating profit, without one-time gains. Revenue (YoY) Operat
Slide 9: Yahoo Japan Full-Year Total Advertising Revenue
｜ Yahoo Japan – *Pre-Integration ZHD Full-Year Total Advertising Revenue Media Business • Achieved first double-digit growth since FY2013, due to the capturing of rebounding demand in the overall market, and product improvements, etc. Total Advertising Revenue Total Advertising Revenue - YoY Growth
Slide 10: LINE Full-Year Total Advertising Revenue
｜ LINE – Full-Year Total Advertising Revenue Media Business • Display ads: Achieved YoY +33.7% growth due to round-the-clock display of ads in chat list, launch of new products, expansion of advertisers, etc. • Account ads: Achieved YoY +17.5% growth due to steady increase in the number of accounts
Slide 11: Full-Year EC Transaction Value
Full-Year EC Transaction Value Commerce Business • Achieved JPY3.57 T (YoY +10.9%) as a result of expansion of transaction value driven by LINE integration, etc. Group EC Transaction Value1 Group EC Transaction Value - YoY Growth Rate (JPY B) 3,578.8 +24.4% 176.1 +24.4% 3,226.8 37.6 450.2 517.9 2,59
Slide 12: Full-Year Merchandise Transaction Value
Full-Year Merchandise Transaction Value Commerce Business • Shopping business transaction value landed at JPY1.69 T (YoY+13.0%) due to the utilization of Group assets, etc. • Reuse business transaction value achieved highest growth since FY2013, due to higher spend per YAHUOKU! user and expansion of
Slide 13: Major Full-Year KPIs in Payment & Financial Businesses
｜ Major Full-Year KPIs in Payment & Financial Businesses Strategic Business • PayPay GMV grew to JPY5.4 T, establishing a solid position in the domestic QR code/barcode payment market. • Changed trade names to PayPay Card & PayPay Bank. Aim to accelerate growth by strengthening collaborations with P
Slide 14: Major KPIs of LINE's Financial Businesses
｜ Major KPIs of LINE’s Financial Businesses Strategic Business • Tapping into potential financial needs through LINE, LINE Securities accounts and LINE Pocket Money loan balance are growing rapidly. • International financial businesses are also growing significantly. Users of LINE Bank (Taiwan) exce
Slide 15: FY2022 Focus Areas/Strategic Investment/Business Results Forecast
Table of Contents Whole Group 1 FY2021 Full-Year Business Results 2 FY2022 Focus Areas/Strategic Investment/Business Results Forecast
Slide 16: FY2022 Focus Areas
FY2022 Focus Areas Whole Group • In FY2022, will focus on the following initiatives to accelerate medium- to long-term growth. 1 2 3 Promotion of cross-use and Expansion of Commerce Expansion of payment & expansion of the Group’s Business leveraging the financial businesses ecosystem strengths of Z
Slide 17: Promotion of Cross-Use and Expansion of the Group's Ecosystem
FY2022 Focus Area: Promotion of Cross-Use and Expansion of the Group’s Ecosystem Whole Group • As part of the initiatives to unify the loyalty programs, changed T Points used and granted in Yahoo! JAPAN services to PayPay Points. • Leveraging one of the largest user bases in Japan, connect the three
Slide 18: Expansion of Commerce Business Leveraging Strengths of Z Holdings
FY2022 Focus Area: Expansion of Commerce Business Leveraging the Strengths of Z Holdings Commerce Business • Through the provision of new purchasing experiences utilizing LINE’s social graphs and Group assets, aim to differentiate services from competitors and increase the number of new buyers. Comp
Slide 19: Expansion of Payment & Financial Businesses Originating from PayPay
FY2022 Focus Area: Expansion of Payment & Financial Businesses Originating from PayPay Strategic Business • Cumulative number of registered users of PayPay Atobarai (deferred payment) exceeded 1 million. Average spend grew and spending per capita also rose. • In FY2022, will focus on further expansi
Slide 20: FY2022 Management Structure: Introduction of CPOs
FY2022 Management Structure: Introduction of CPOs Supervising Specific Domains Whole Group • Introduced new CPOs supervising specific business domains and responsible for promoting products in each domain, with the aim of strengthening the management structure for product growth. • Will accelerate d
Slide 21: FY2022 Strategic Investments
FY2022 Strategic Investments Whole Group • In FY2021, invested approximately JPY22 B, mainly in Commerce Business. • In FY2022, strategic investments of approximately JPY50 B – 70 B planned. Decisions will be made flexibly taking into account the business environment and market conditions to promote
Slide 22: FY2022 Full-Year Guidance
FY2022 Full-Year Guidance Whole Group • Aim to increase full-year revenue to approx. JPY1.7 T by promoting initiatives in the FY2022 focus areas. • Increase in adjusted EBITDA to JPY331.5 B – 340.0 B estimated due to increased strategic investments. Segment Item Estimate YoY Revenue Approx. JPY1.72
Slide 23: Disclaimer
Disclaimer Whole Group Statements made at the meeting or included in the documents that are not historical facts are forward-looking statements about the future performance of Z Holdings Corporation (Company, Z Holdings, ZHD) and its consolidated subsidiaries and affiliates. The Company cautions you
Slide 24: Unleashing the infinite potential of all people, with the power of information technology
Unleashing the infinite potential of all people, with the power of information technology