Ly Corporation · TSE:4689
Ly — Z Holdings — FY2019 Q2 Earnings Presentation
53 slides from Ly's earnings presentation, Nov 1, 2019
Slide 1: Z Holdings Corporation FY2019-2Q Business Results
Z Holdings Corporation FY2019-2Q Business Results November 1, 2019 Security Code: 4689
Slide 2: Table of Contents
Table of Contents 1 Z Holdings Corporation 2 FY2019-2Q Financial Results 3 Business Topics 4 Appendix 1
Slide 3: Z Holdings Corporation
Z Holdings Corporation
Slide 4: New Corporate Structure
New Corporate Structure From Y to Z — Structure that creates a greater future President & Representative Director Kentaro Kawabe President & President & Representative Representative Director Director Kentaro Kawabe Tomoaki Tanida ・・・ Commerce Commerce business Consolidated subsidiaries Group compan
Slide 5: Z Holdings – Business Model
Z Holdings – Business Model Business model with variety and scalability Commerce Media E-commerce Integrated Advertising Membership O2O Finance Paid search Royalty marketing Monetization Display points Data solution No. of payments/transaction value Time spent by logged-in users Base EC transaction
Slide 6: Our Aspirations: From predicting to creating the future
Our Aspirations From predicting to creating the future Expand business domains from online to offline; increase revenue in four fields Integrated E-commerce Fintech marketing Data solution solution Enhance group synergies, to provide exceptionally convenient user experience Flexible and expediti
Slide 7: FY2019-2Q Financial Results
FY2019-2Q Financial Results
Slide 8: FY2019-2Q Consolidated Income Statement
FY2019-2Q Consolidated Income Statement Item FY2018-2Q FY2019-2Q YoY Revenue 233.1 (¥B) 245.5 (¥B) +5.3 % Operating income 35.5 (¥B) 39.4 (¥B) +11.2 % EBITDA *1 48.2 (¥B) 57.8 (¥B) +20.1 % Equity in earnings of associates *2 -5.0 (¥B) and joint venture -1.1 (¥B) n.a. Net income 22.7 (¥B) 24.7 (¥B) +
Slide 9: Factors of Change in Consolidated Operating Income
FY2019-2Q Factors of Change in Consolidated Operating Income Despite an increase in fixed costs, etc.; succeeded in increasing operating income by scrutinizing expenses and measures to be implemented FY2018-2Q Result Amount (¥B) Major factors of change (¥B) FY2018-2Q Result 35.5 ASKUL ＋7 (Partly due
Slide 10: Business Base
Business Base Each business base expanding steadily No. of Time spent by EC transaction value Credit card transaction value monthly logged-in user IDs logged-in users* （¥ B） （¥ B） （Mil IDs） (Billion hours) More than 2X since More than 4X in 17 consecutive quarters: Approx. 2X in 500 50 double digit
Slide 11: FY2019 Full Year Guidance (Consolidated Basis)
FY2019 Full Year Guidance (Consolidated Basis) Excluding ZOZO, aim to achieve lower end of operating income guidance Item FY2019 (estimate) YoY Progress Revenue Over ¥1 T ＋5 to 7 % 48 ％ Operating income ¥ 140.6 to 150.0 B ±0 to +7 % 50 to 54 ％ Net income attributable ¥ 79.0 to 85.0 B ±0 to +8 % 60 t
Slide 12: Business Topics
Business Topics
Slide 13: Commerce Business
Commerce Business YAHOO! RASKUL — 1
Slide 14: FY2019-2Q Commerce Business – Uses
FY2019-2Q Commerce Business – Uses Commerce Business base Membership growing steadily Finance O2O Item Details 2 Credit card transaction value exceeded Payment ¥460 B, +57% YoY 2 Payment Shopping transaction value Base 1 1 E-commerce E-commerce maintained high YoY growth of +22% 13
Slide 15: FY2019-2Q Commerce Business – KPI
FY2019-2Q Commerce Business – KPI Item Actual result YoY Major measures / Major factors of change EC transaction value 604.7 (¥B) ＋12.0 % EC transaction value 482.4 (¥B) ＋8.8 % (Sale of goods) Yahoo! Shopping grew approx. +25% (partly due to Shopping transaction value 211.6 (¥B) ＋22.0 % last-minute
Slide 16: Commerce Business
Commerce Business “YAHOO! JAPAN
Slide 17: New service – PayPay Mall
New service – PayPay Mall Released in October 2019 Premium online Listing fee Strict selection of stores shopping mall 3% Mall Approx. 600 Note: PayPay Mall is a business of Yahoo Japan Corporation. （Expanding） “PayPay” is a registered trademark of Yahoo Japan Corporation. Advantages Tenants Brandin
Slide 18: New service – PayPay Flea Market
New service – PayPay Flea Market Released in October 2019 Rocket start Flea market app that allows simple and Sales commission value-for-money deals using PayPay 10% Flea Market Note: PayPay Flea Market is a business of Yahoo Japan Corporation. “PayPay” is a registered trademark of Yahoo Japan Corpo
Slide 19: Commerce Business
Commerce Business *ASKUL
Slide 20: ASKUL Corporation: Undertaking measures jointly to increase corporate value
ASKUL Corporation Undertaking measures jointly to increase corporate value Reinforce corporate governance Strengthen synergies Decided on policies to operate a Mall provisional nomination/remuneration committee Open store Appointment of independent outside director candidates who have the abilit
Slide 21: Commerce Business
Commerce Business — | en
Slide 22: Ikyu Corporation: Business expanding steadily after acquisition
Ikyu Corporation Business expanding steadily after acquisition 7,000,000,000 70,000,000,000 Revenue Operating income Transaction value Transaction value ＋20% YoY growth 6,000,000,000 60,000,000,000 5,000,000,000 50,000,000,000 Approx. Grew approx. 6X after acquisition 4,000,000,000 40,000,000,000 Op
Slide 23: Media Business
Media Business “YAHOO! JAPAN
Slide 24: FY2019-2Q Media Business – Uses
FY2019-2Q Media Business – Uses Display Paid search advertising advertising Media’s user base steadily YDN, etc. Premium growing mainly in smartphones Brand Panel Item Details YDN Prime 2 Display Time spent by Premium DSP Shopping logged-in users +22% YoY growth Advertising via smartphones 2 Time sp
Slide 25: FY2019-2Q Total Advertising Revenue - Results
FY2019-2Q Total Advertising Revenue - Results YoY Item Actual result (¥B) Major measures / Major factors of change (YoY difference ¥B) ＋3.5% Total advertising revenue 82.1 Improved compared to 1Q’s YoY result of +2.4% (+2.7) • Positive effects from change in UI, increase in no. of ads displayed, etc
Slide 26: New Advertising Products: Integrated Marketing Solution
New Advertising Products Integrated Marketing Solution Sales Promotion Offline commerce ads Released in 3Q PayPay Consumer Gift Planned: Mainly for PayPay coupon & sampling manufacturers Purchase, etc., promoted through campaign notices in solution with major drug Yahoo! JAPAN. (No specification of
Slide 27: Use Case of PayPay Consumer Gift: ITO EN
Use Case of PayPay Consumer Gift : ITO EN, LTD. Come in contact with ads Scan campaign code with Enter email address in Check lottery on the spot displayed in Yahoo! JAPAN smartphone campaign website Bonus granted for wins Illustrative purpose only Notify campaign Purchase product Enter a lottery Gr
Slide 28: Strengthening Synergies with SoftBank
Strengthening Synergies with SoftBank Shuichi Kukita (Executive Vice President of SoftBank Corp.) １ appointed as Director, Senior Managing Corporate Officer of Yahoo Japan Corporation Newly established a joint team in SoftBank Corp. in order to strengthen 2 sales in Media Business Yahoo Service Prom
Slide 29: Strategic Measures: Finance Business
Strategic Measures Finance Business
Slide 30: Strategic Measures: Finance Business
Strategic Measures Finance Business
Slide 31: Business alliance with group companies of SBI Holdings
Business alliance with group companies of SBI Holdings, Inc. October 2019, agreed on business alliance to utilize the strengths and know- how of each company SBI Securities business Yahoo! Finance SECURITIES Provide seamless securities trading experience Mr. Masato Takamura Representative Director,
Slide 32: Strategic Measures: PayPay
Strategic Measures y>) PayPay
Slide 33: PayPay – KPI
PayPay – KPI 1 year since service launch, business expanding steadily No. of PayPay No. of merchants No. of registered users transactions (quarter) （quarter-end) (quarter-end) 96.12 mil 1.54 mil 14.74 mil Approx. 85 mil Approx. 19 mil in October alone as of end of October 47.48 mil 0.72 mil 8.4 mil
Slide 34: PayPay – KPI: Use intent skyrocketing
PayPay – KPI Use intent skyrocketing due to “Point Reward Project for Consumers” ＋“Machikado PayPay” Name awareness Use intent ▶1st ¥10 B ▶2nd ¥10 B ▶Consumption ▶2nd ¥10 B ▶Consumption campaign campaign tax hike campaign tax hike Company A Company B, C Company D Company B Company A, C Company D 11
Slide 35: PayPay – Product Update
PayPay – Product Update Continued to conduct measures that provide both safety and convenience Cash top-up possible from all Seven Bank Released “PayPay for Business” app Topping up PayPay through “Bundled Bill ATMs across Japan (July 11) (July 26) with SoftBank/Y!mobile” (July 31) Cash top-up possi
Slide 36: PayPay – Campaign Update
PayPay – Campaign Update Continued to conduct measures to increase PayPay transactions and awareness Measures in 2Q Measures in 3Q Wakuwaku PayPay First “Machikado PayPay” campaign Buy one, get one HEATTECH free (Every day, every month) (Oct. 1 – Nov. 30) (Oct. 4 – 22) Shopping campaign held in Tota
Slide 37: Strategic Measures: Tender offer in process
Strategic Measures （Tender offer in process）
Slide 38: ZOZO: Aim to acquire 50.1% stake to make ZOZO a consolidated subsidiary
ZOZO（Tender Offer in Process） Aim to acquire 50.1% stake to make ZOZO a consolidated subsidiary Highlights of business alliance Will largely contribute to increase in • Referral of users from Yahoo! JAPAN to income of Commerce Business and EC ZOZOTOWN transaction value • Introduction of PayPay payme
Slide 39: 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 38
Slide 40: Appendix
Appendix
Slide 41: FY2019-1H Consolidated Income Statement
FY2019-1H Consolidated Income Statement FY2018-2Q FY2019-2Q Item YoY (cumulative) (cumulative) Revenue 465.0 (¥B) 484.1 (¥B) +4.1 % Operating income 83.1 (¥B) 75.6 (¥B) -9.0 % EBITDA *1 108.2 (¥B) 111.9 (¥B) +3.4 % Other non-operating income and expenses 1.2 (¥B) *2 10.8 (¥B) +775.8 % Equity in earn
Slide 42: FY2019-2Q Statement of Financial Position
FY2019-2Q Statement of Financial Position Consolidated (IFRS) The Japan Net Bank, Limited (JGAAP) YJ Card Corporation (JGAAP) FY2018 FY2019 FY2018 FY2019 FY2018 FY2019 (¥ B) Difference (¥ B) Difference (¥ B) Difference 4Q 2Q 4Q 2Q 4Q 2Q Assets 2,429.6 2,795.8 366.2 Assets 878.7 927.4 48.7 Assets 353
Slide 43: Image of Our Long-Term Revenue Composition
Image of Our Long-Term Revenue Composition We will continue to grow while drastically changing our revenue composition to meet the changes in the business environment Data solution Fintech E-commerce Integrated marketing solution, shopping advertising Paid search advertising, display advertising (ex
Slide 44: Operating Income – Long-Term Outlook
Operating Income – Long-Term Outlook Businesses to be strengthened (Shopping advertising, Integrated marketing FY19 ー FY22 solution, Financial & Payment, Membership, YAHUOKU!) Advertising income – base (Paid search advertising, display advertising) By investing in measures to expand users and EC
Slide 45: Materiality Matrix for Yahoo Japan Corporation
Materiality Matrix for Yahoo Japan Corporation The numbers and colors in the matrix 11 17 coincide with the SDG icons. Solving social Corporate Issues with 9 governance IT Data 4 Quality Education security 11 17 Disaster measures/ 8 9 Recovery support 5 Gender Equality Level of stakeholder concern H
Slide 46: Z Holdings – Service Map
Z Holdings – Service Map ヤフーのサービスマップ Media Commerce Digital Contents ebookjapan Shopping Fortune telling Game TOP page Weather/Disaster News Finance (Digital books) Auction Sportsnavi GYAO! O2O Knowledge search (Sports news site) (Video streaming) ASKUL Real Travel Restaurant (B to B EC) estate book
Slide 47: Business Portfolio
Business Portfolio The size of the circles illustrates revenue size. Red circles: businesses of Yahoo Japan Corporation; blue circles: businesses of consolidated subsidiaries; dotted circles: businesses to be launched from 3Q onwards Disclosed Commerce business Media business segments EC Finance Oth
Slide 48: Business Segment Breakdown
Business Segment Breakdown Advertising Display advertising (“Premium Advertising”) ASKUL, Affiliate-related services, Reservation-related services, Corporate system-use fees of Business Services YAHUOKU!, Payment-related services, Banking-related services, Credit card-related services and (For corpo
Slide 49: Definition of EC Transaction Value
Definition of EC Transaction Value YAHUOKU! Shopping Yahoo! Shopping, Business LOHACO, Charm EC transaction value (sale of goods) ASKUL BtoB EC transaction Other Yahoo! Tickets, Ouchi-Direct value (sale of goods) Ikyu, Yahoo! Travel, O2O Yahoo! Dining EC transaction value (non-sale of goods) Other F
Slide 50: Advertising Products
Advertising Products Advertising Products Main Format Fee Calculation Placement Pages Main Advertiser Base Paid search Search results Sponsored Search® Text advertising pages Per-click rate Major corporations (Performance-based) *2 Text Yahoo! Display Ad Banner Small and medium-sized Network compani
Slide 51: PayPay – Business Model
PayPay – Business Model Maximize the base and develop various earning pillars O2O Ads Finance Yahoo Japan domain Accumulate data＋Increase balance PayPay domain No. of merchants Online linkage/ No. of users No. of transactions offline merchants 50
Slide 52: 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) and its consolidated subsidiaries and affiliates. The Company cautions you that a number of
Slide 53: Z Holdings
Z HOLDINGS