Ly Corporation · TSE:4689
Ly — Z Holdings — FY2022 Q2 Earnings Presentation
34 slides from Ly's earnings presentation, Nov 2, 2022
Slide 1: Z Holdings Corporation Business Results FY2022 Q2
Security Code: 4689 Z Holdings Corporation Business Results FY2022 Q2 November 2, 2022
Slide 2: FY2022 Q2 Business Results – Topics
FY2022 Q2 Business Results – Topics Revenue increased in all segments. Revenue: JPY394.3 B – highest second quarter revenue. Adjusted EBITDA: approx. 50% of guidance despite unstable macro environment. • LINE’s account ads maintained a double-digit growth (YoY +17.8%). Yahoo Japan’s search advertisi
Slide 3: Table of Contents
Table of Contents 1 Consolidated Business Results – Whole Group 2 Topics/Business Results – By Segment 3 FY2022 Business Results Forecast
Slide 4: Table of Contents
Table of Contents 1 Consolidated Business Results – Whole Group 2 Topics/Business Results – By Segment 3 FY2022 Business Results Forecast
Slide 5: FY2022 Q2 Consolidated Business Results Whole Group
FY2022 Q2 Consolidated Business Results Whole Group • Achieved record-high Q2 revenue despite a challenging macro environment. • Decrease in adjusted EBITDA due to absence of YJFX sales gain recorded previous fiscal year and execution of strategic investments. Segment Item FY2021 Q2 FY2022 Q2 YoY Re
Slide 6: FY2022 Policies to Achieve Consolidated Performance Guidance
FY2022 Policies to Achieve Consolidated Performance Guidance Whole Group • Absorb impacts of PayPay consolidation and revenue decrease in Media Business, etc. through cost optimization. • Aim to achieve initial adjusted EBITDA guidance of JPY331.5 - 340.0 B although changes in the macro environment
Slide 7: FY2022 Q2 Strategic Investments – Results
FY2022 Q2 Strategic Investments – Results Whole Group • In Q2, executed strategic investments of approximately JPY11.0 B mainly in Commerce Business. Due to the consolidation of PayPay Corporation, strategic investment towards PayPay Card has not been implemented since acquisition efficiency will be
Slide 8: Status towards ID Linkage
Status towards ID Linkage Whole Group • Taking prudent measures due to changes in social conditions surrounding information management. • System development progressing smoothly without major delays. Status of Actions to Begin ID Linkage (Scheduled to begin from 2023 onwards) 1 2 Establishment of Sy
Slide 9: Results after Business Integration and Future Roadmap
Results after Business Integration and Future Roadmap Whole Group • After business integration, mainly promoted product/sales collaboration, integration of overlapping areas, selection and concentration of businesses, etc. • Having consolidated PayPay and as a Group with powerful assets, will furthe
Slide 10: Table of Contents
Table of Contents 1 Consolidated Business Results – Whole Group 2 Topics/Business Results – By Segment 3 FY2022 Business Results Forecast
Slide 11: Media Business
Media Business
Slide 12: Market Impact and Challenges
Market Impact and Challenges Media Business • Japan's advertising market is steadily digitalizing but continues to be affected by macro and business conditions, especially in display ads. • ZHD’s unique account ads and search ads are less affected by market conditions and demonstrate product strengt
Slide 13: Business Overview (LINE – Total Advertising Revenue)
｜ Business Overview (LINE – Total Advertising Revenue) Media Business • Account ads: strong double-digit growth due to acquisition of new customers and continued increase in ad distributions by major clients. • Display ads: slight YoY revenue decrease due to decline in advertising in some industries
Slide 14: Business Overview (Yahoo Japan – Total Advertising Revenue)
｜ Business Overview (Yahoo Japan – Total Advertising Revenue) Media Business • Search advertising performed well even in an unstable macro environment due to its ease of measuring effectiveness. • In addition to absence of the special demand for the Olympics in last fiscal year, display advertising
Slide 15: Product-Specific Initiatives Based on Market Impacts
Product-Specific Initiatives Based on Market Impacts Media Business • To reduce the impacts of macro/business conditions, strengthen measures for video/app advertising which are growth areas in display ads. • Further develop ZHD’s unique assets, account ads and search ads through product refinement
Slide 16: Updates on Business Strategy: LINE VOOM
｜ Updates on Business Strategy: LINE VOOM Media Business • Various KPIs are growing steadily after last fiscal year’s renewal: growth in video play time, no. of views and viewers. • Will acquire/develop creators, improve user experience to promote monetization through video advertising. Status after
Slide 17: Updates on Business Strategy: LINE Official Account
｜ Updates on Business Strategy: LINE Official Account Media Business • No. of paid accounts increasing steadily as LINE Official Account becomes more prevalent as a communication infrastructure with customers. • In addition to leveraging the ZHD Group’s rich touchpoints, will promote use through pro
Slide 18: Commerce Business
Commerce Business
Slide 19: Status of Renewed Yahoo! JAPAN Shopping
｜ Status of Renewed Yahoo! JAPAN Shopping Commerce Business • Merchants’ applications to Promotion Package Plan exceeded expectations and the ratio of blue-ribbon delivery is steadily increasing. • With the integration of sales platforms, will simplify sales promotional measures and uplift recogniti
Slide 20: Investment Policy for Commerce Business
｜ Investment Policy for Commerce Business Commerce Business • After the integration of sales platforms, for sales promotion in mall-type e-commerce, will focus on user retention rate and LTV, aiming to achieve stable growth in transaction value. • Instead of fixed point-provisions, implement effecti
Slide 21: Investment in Social Commerce
｜ Investment in Social Commerce Commerce Business • For platforms that can only be operated by Z Holdings, continue future-oriented yet disciplined developments/investments. • Further increase transaction value by enriching product lineup (e.g., cosmetics) and increasing products handled through lin
Slide 22: Overseas E-Commerce
｜ Overseas E-Commerce Commerce Business • E-commerce markets in Taiwan/Thailand, focus markets, continue to grow. • In response to changes in macro environment, will maintain investment discipline while improving profitability through product improvements. Overseas E-Commerce – Market Size/Transacti
Slide 23: Business Overview (EC Transaction Value)
Business Overview (EC Transaction Value) Commerce Business • Group EC transaction value continued to record double-digit growth: JPY1.0262 T (YoY +13.5%). • Domestic services EC grew to JPY160.0 B (YoY +41.1%) driven by favorable growth in travel business due to economic reopening. Group EC Transact
Slide 24: Business Overview (Domestic Merchandise Transaction Value)
Business Overview (Domestic Merchandise Transaction Value) Commerce Business • Although shopping/reuse businesses recorded stable growth of YoY +8.7-8.8%, growth of domestic merchandise transaction value was YoY +7.0% due to closure of “Ouchi-Direct.” Domestic Merchandise Transaction Value1 Domestic
Slide 25: Strategic Business
Strategic Business
Slide 26: Goals and Key Measures of PayPay & PayPay Card
｜ Goals and Key Measures of PayPay & PayPay Card Strategic Business • Provide seamless payment experience from PayPay app for all payment methods so that PayPay-branded payments can be used in various situations. • Aim to improve ARPU by expanding use of both QR & credit card payments which have dif
Slide 27: PayPay's Growth Trend Before Consolidation
｜ PayPay’s Growth Trend Before Consolidation Strategic Business • PayPay Point management users exceeded 7 mil and subscribers of PayPay Insurance mini app also continues to grow. • Steady progress in monetization measures in non-payment domains. No. of PayPay Point Management Users Cumulative Subsc
Slide 28: Business Overview (PayPay)
｜ Business Overview Strategic Business • No. of registered users exceeded 50 mil. GMV remains at high level. Aim to expand business even further through consolidation. • Revenue increased after charging transaction fees to SMB merchants. EBITDA improving steadily. No. of Registered Users GMV1 Revenu
Slide 29: Other Domestic Financial Businesses – Major KPIs
Other Domestic Financial Businesses – Major KPIs Strategic Business • PayPay Card and PayPay Bank will expand businesses through strengthened collaborations with PayPay. • LINE’s domestic financial business has largely grown, capturing potential financial needs through LINE. PayPay Card – Transactio
Slide 30: Table of Contents
Table of Contents 1 Consolidated Business Results – Whole Group 2 Topics/Business Results – By Segment 3 FY2022 Business Results Forecast
Slide 31: FY2022 Revision to Full-Year Guidance
FY2022 Revision to Full-Year Guidance Whole Group • Consolidation of PayPay is a revenue increase factor but will maintain full-year revenue guidance (whole group) of approx. JPY1.72 T due to revenue decrease in Media Business, etc. • For adjusted EBITDA (whole group), aim to achieve initial guidanc
Slide 32: Recording of Gain on Remeasurement Relating to Business Combinations
Recording of Gain on Remeasurement Relating to Business Combinations Due to Consolidation of PayPay Corporation Whole Group • In FY2022 Q3, plan to record a gain on remeasurement relating to business combinations of JPY148.0 B (EBITDA adjustment item). • To win in the wildly fragmented cashless paym
Slide 33: 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 Z Holdings Corporation (Company, Z Holdings, ZHD) and its consolidated subsidiaries and affiliates. The Company cautions you that a numb
Slide 34: 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