Slide 1: LY Corporation Business Results FY2023 Q3
LY Corporation Business Results FY2023 Q3 February 6, 2024 Security Code: 4689
Slide 2: FY2023 Q3 Business Results - Topics
FY2023 Q3 Business Results - Topics • Full-year guidance was revised upward with an adjusted EBITDA of JPY109.8 billion (YoY +17.4%). • Q3 revenue achieved a record high of JPY475.0 billion (YoY +4.7%). • Total advertising revenue grew by 3.7% YoY as a result of a recovery in display advertising. Co
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: Entire Group – Performance
Entire Group Entire Group – Performance • The growth of Media Business and subsidiaries led to increased revenue while cost optimization and a selective focus on key business areas helped maintain double-digit income growth. Revenue/YoY Growth Rate Adjusted EBITDA/YoY Growth Rate Adjusted EBITDA Mar
Slide 6: Entire Group Factors Behind Change in Adjusted EBITDA
Entire Group Factors Behind Change in Adjusted EBITDA • LY Corporation’s improved gross profit was a larger contributor to adjusted EBITDA growth than the improved SG&A. Factors Behind Change in Adjusted EBITDA Improvements in FY2023 Q3 (SG&A/Adjusted EBITDA) (JPY B) (JPY) LY Corporation & Others1 L
Slide 7: Factors Behind Change in Operating Income
Entire Group Factors Behind Change in Operating Income • Excluding a one-time gain from the consolidation of PayPay, improved profitability resulted in a 33% increase in operating income. (JPY B) (JPY B) FY2022 FY2023 YoY Gain on remeasurement relating to business combinations due to consolidation o
Slide 8: Factors Behind Change in Adjusted Net Income
Entire Group Factors Behind Change in Adjusted Net Income • In addition to increased operating income, the absence of impairment losses from the previous year led to a significant growth in adjusted net income. (JPY B) (JPY B) FY2022 FY2023 YoY Included in amount: Q3 Q3 Other non- Impairment loss fr
Slide 9: Adjusted EPS Trend
Entire Group Adjusted EPS Trend • Adjusted EPS recovered faster than expected as a result of a selective focus on key business areas and temporary factors. Adjusted EPS Policy and Measures (JPY) Policy Mar. 2021: Business integration between ZHD and LINE 18.7 Within around 3-4 years, recover to pre-
Slide 10: Utilization of AI
Entire Group Utilization of AI • Improvements in development work efficiency as well as ad features. Development Work Search Ads Display Ads Introduction of GitHub Copilot Automated Generation of Creatives Automated Targeting • Offers AI-based coding and improvement • Automatically generates • Deliv
Slide 11: FY2023 Consolidated Full-Year Guidance
Entire Group FY2023 Consolidated Full-Year Guidance • Adjusted EBITDA was revised upward as a result of steady progress in selectively focusing on key business areas. • Figures for FY2022 onward were retroactively revised after revising cost allocation for the entire Group and transferring services
Slide 12: Business Results/Topics – By Segment
Table of Contents 1 Consolidated Business Results – Entire Group 2 Business Results/Topics – By Segment
Slide 13: Media Business – Performance
Media Business Media Business – Performance • Both revenue and income increased as a result of a gradual improvement in advertising. In particular, account ads drove the improvement in margins. Revenue/YoY Growth Rate1, 2, 3 Adjusted EBITDA/YoY Growth Rate1, 2, 3 Adjusted EBITDA Margin1, 2, 3 (JPY B
Slide 14: Entire Group – Total Advertising Revenue
Media Business Entire Group – Total Advertising Revenue • Display ads revenue shifted to positive growth and continues its gradual recovery trend. Entire Group – Total Advertising Revenue Entire Group – Total Advertising Revenue YoY Growth Rate (JPY B) 157.2 151.5 151.7 +22.9% 147.3 (15.2 ) (Shoppin
Slide 15: Search Advertising
Media Business Search Advertising • While revenue decreased from less profitable ads on partners’ websites, revenue from ads on LY Corporation’s websites continued to increase. Search Advertising Revenue/YoY Growth Rate Factors Behind Change in Search Advertising Revenue (JPY B) +10.6% LY Corporatio
Slide 16: Account Linkage/LYP Premium
Media Business Account Linkage/LYP Premium • No. of linked accounts is steadily increasing as we aim for further increase in memberships with the launch of LYP Premium. Account Linkage LYP Premium Results of Linkage Between LINE Yahoo! JAPAN Premium/LYP Premium2 Measures to Promote Membership Acquis
Slide 17: Account Advertising
Media Business Account Advertising • No. of paid accounts increased as a result of pricing revision while improvements to features continue. No. of Paid LINE Official Accounts (Global/Japan)1 Improvements to Features (Thousands) Linkage with LY Corporation “Group” Feature Group Services 375 356 • Re
Slide 18: Commerce Business – Performance
Commerce Business Commerce Business – Performance • Domestic merchandise transaction value improved, resulting in an increase in revenue and income. Revenue/YoY Growth Rate1, 2, 3 Adjusted EBITDA/YoY Growth Rate1, 2, 3 Adjusted EBITDA Margin1, 2, 3 (JPY B) (JPY B) +2.7% +27.5% +20.9% +1.5% Growth +0
Slide 19: Business Overview (E-Commerce Transaction Value)
Commerce Business Business Overview (E-Commerce Transaction Value) • Domestic merchandise transaction value returned to positive growth. Group E-Commerce Transaction Value1 Group E-Commerce Transaction Value1 - YoY Growth Rate (JPY B) 1,118.2 1,119.5 87.8 1,029.8 83.4 Overseas E-Commerce3 43.7 980.3
Slide 20: Business Overview (Domestic E-Commerce Transaction Value)
Commerce Business Business Overview (Domestic E-Commerce Transaction Value) • Shopping transaction value is on a recovery trend. Travel transaction value decreased due to the absence of Japan's nation-wide travel incentives for the travel industry, which was conducted in the previous year. Domestic
Slide 21: Strategic Business – Performance
Strategic Business Strategic Business – Performance • Revenue achieved double-digit growth, while selective focus on key business areas and business growth led to an increase in adjusted EBITDA. Revenue/YoY Growth Rate1, 2 Adjusted EBITDA1, 2 Adjusted EBITDA Margin1, 2 (JPY B) (JPY B) +115.9% 3.9 3.
Slide 22: PayPay Business Overview
Strategic Business PayPay Business Overview • Consolidated revenue continued to grow in tandem with the growth of registered users and consolidated GMV. No. of Registered Users¹ GMV (Consolidated) 2, 3 Revenue (Consolidated)4 EBITDA (Consolidated)5 (Mil) (JPY T) (JPY B) (JPY B) 61.45 3.2 55.6 3.3 58
Slide 23: PayPay Card – Major KPIs
Strategic Business PayPay Card – Major KPIs • Synergy with PayPay contributed to continued high growth. Active Cardholders Transaction Volume1 Revolving Balance (Mil) (JPY B) (JPY B) 11.17 1,251.0 334.6 10.73 317.3 10.42 10.04 1,111.0 9.58 1,079.2 294.2 976.4 971.9 259.8 230.0 YoY +16.6% YoY +28.1%
Slide 24: PayPay Bank – Major KPIs
Strategic Business PayPay Bank – Major KPIs • All indices continued to grow by double digits. Loan balances increased by more than 30% as a result of increased loans to individuals and corporations. Revenue No. of Accounts Deposit Balance Loan Balance (JPY B) (Mil) (JPY B) (JPY B) 11.9 7.58 1,796.5
Slide 25: 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 26: Create an amazing life platform that brings WOW! to our users.
Create an amazing life platform that brings WOW! to our users.