LY : Results for the Fiscal Year Ended March 31, 2026

May 8, 2026

Company Name: LY Corporation Share Listings: Prime Market of TSE

Code No.: 4689 URL: https://www.lycorp.co.jp/en/

Representative: Takeshi Idezawa,

President and Representative Director, CEO Contact: Ryosuke Sakaue, Executive Corporate Officer, CFO Scheduled Ordinary Shareholder's Meeting Date: June 19, 2026 Scheduled Dividend Payment Date: June 5, 2026

Scheduled Securities Report Submission Date: June 18, 2026 Financial Results Supplementary Briefing Materials to Be Created: Yes

Financial Results Investors Meeting to Be Held: Yes (for Financial Analysts)

Tel: +81-3-6779-4900

1. Consolidated Results for FY2025 (April 1, 2025-March 31, 2026)

   (Amounts less than one million yen are omitted)

   1. Consolidated Business Performance (April 1, 2025-March 31, 2026) (Percentages represent year-on-year changes)

      	Revenue		Operating income		Profit before tax		Net income		Net income attributable to owners of the parent		Total comprehensive income
      	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      FY2025	2,036,366	6.2	341,322	8.3	294,231	7.0	283,090	39.9	193,692	26.2	312,752	86.5
      FY2024	1,917,478	5.7	315,033	51.3	274,882	51.3	202,403	45.5	153,465	35.6	167,732	(1.9)

      	Adjusted EBITDA		Adjusted net income		Adjusted EPS		Basic earnings per share	Diluted earnings per share	Profit ratio to equity attributable to owners of the parent	Profit before tax ratio to total assets	Operating margin
      	Millions of yen	%	Millions of yen	%	Yen	%	Yen	Yen	%	%	%
      FY2025	496,681	5.5	198,962	9.3	28.73	15.3	27.97	27.85	6.5	2.9	16.8
      FY2024	470,831	13.5	182,062	8.8	24.91	11.7	21.00	20.92	5.1	3.0	16.4

      (For reference) Equity in losses of associates and joint ventures: FY2025 [(7,496) million yen] FY2024 [(9,677) million yen] (Note) Please find the definitions of adjusted EBITDA, adjusted net income, and adjusted EPS in the following page.

   2. Consolidated Financial Position

      	Total assets	Total equity	Equity attributable to owners of the parent	Ratio of equity attributable to owners of the parent	Equity attributable to owners of the parent per share
      	Millions of yen	Millions of yen	Millions of yen	%	Yen
      FY2025	11,205,191	3,713,509	2,998,805	26.8	437.23
      FY2024	9,158,346	3,418,915	2,998,170	32.7	420.77

   3. Consolidated Cash Flows Status

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash & cash equivalents at the end of the period
   FY2025 FY2024	Millions of yen 662,854 519,590	Millions of yen (809,247) (505,633)	Millions of yen 153,309 (416,797)	Millions of yen 1,068,032 1,043,944

2. Dividends

   	Dividends per share					Total amount (Full year)	Payout ratio (Consolidated)	Dividend ratio to equity attributable to owners of the parent (Consolidated)
   	1Q	2Q	3Q	Year end	Full year	Millions of yen	%	%
   	Yen	Yen	Yen	Yen	Yen
   FY2024	-	0.00	-	7.00	7.00	50,075	33.3	1.7
   FY2025	-	0.00	-	7.30	7.30	50,215	26.1	1.7
   FY2026 (Estimates)	-	0.00	-	11.00	11.00		-

3. Consolidated Performance Estimates for FY2026 (April 1, 2026-March 31, 2027)

(Note)

For details, please refer to 3. Outlook for Fiscal Year Ending March 31, 2027 (April 1, 2026-March 31, 2027) in (1) Qualitative Information Regarding the Consolidated Business Performance of 1 Analysis of Business Results and Financial Position on page 6 of the Results for the Fiscal Year (Attachments).

1. Significant changes in scope of consolidation during the period: Yes

   Newly consolidated: 5 (BEENOS Inc., LINE Bank Taiwan Limited, LINE MAN CORPORATION PTE. LTD., DECACORN CO., LTD., LINE MAN (THAILAND) COMPANY LIMITED)

   Excluded from consolidation: 1 (Z Financial Corporation)

2. Changes in the accounting principles and accounting estimates

   1. Changes due to IFRSs: None

   2. Changes other than 1): None

   3. Changes in accounting estimates: None

3. Number of stocks issued (common stock)

   1. Number of stocks issued (including treasury stocks)

      As of March 31, 2026 6,884,244,856 shares

      As of March 31, 2025 7,154,182,647 shares

   2. Number of shares of treasury stocks

      As of March 31, 2026 25,635,999 shares

      As of March 31, 2025 28,775,073 shares

   3. Average number of common stocks outstanding

      Fiscal year ended March 31, 2026 6,925,897,950 shares

      Fiscal year ended March 31, 2025 7,307,937,444 shares

      Note: The number of shares of treasury stocks includes the number of shares of LY Corporation (the "Company") held by the Stock Delivery Trust (J-ESOP), the Board Incentive Plan Trust, and the Stock Delivery ESOP Trust (as of March 31, 2025: 28,167,999 shares; as of March 31, 2026: 20,196,214 shares).

4. Formula for each management index

・Adjusted EBITDA: Operating income + depreciation & amortization (*1) ± EBITDA adjustment items (*2)

・Adjusted net income: Net income attributable to owners of the parent ± EPS adjustment items (*3) ± tax equivalent on some EPS adjustment items

・Adjusted EPS: Adjusted net income/average number of common stocks outstanding (*1) Depreciation & amortization: Depreciation, depreciation of right-of-use assets, etc.

(*2) EBITDA adjustment items: Gains/losses on non-recurring and non-cash transactions within operating revenue and expenses, etc. (loss on retirement of fixed assets, impairment losses, stock compensation expenses, gain on remeasurement relating to business combinations, other transactions with undetermined cash outflows (one-time provisions, etc.), etc.). Also, gains/losses on sales of shares held by certain funds.

(*3) EPS adjustment items: ± EBITDA adjustment items + amortization of identifiable intangible assets arising from business combinations ± non-recurring gains/losses in non-operating income/expenses

* The Results for the Fiscal Year are not subject to audit by certified public accountants or audit corporations.

* Explanation of the proper use of performance estimates, and other special notes

・The performance estimates, etc., and other forward-looking statements contained in this document are based on the information currently available to the Company and premised on assumptions that have been deemed reasonable by the management. For a variety of reasons, actual performance estimates, etc., could differ significantly.

・Supplementary materials to the earnings results are published on the Company's website (https://www.lycorp.co.jp/en/ir.html) on Friday, May 8, 2026.

• Table of contents of attachments

1. Analysis of Business Results and Financial Position 2

   1. Qualitative Information Regarding the Consolidated Business Performance 2

   2. Qualitative Information Regarding the Consolidated Financial Position 6

   3. Basic Policy Regarding Profit Distribution and Dividend Payments for FY2025 and FY2026 7

2. Management Policy 8

   1. Fundamental Business Management Policies 8

   2. Management Performance Indicators Used for Goals 8

   3. Medium- to Long-Term Business Strategies 8

   4. Major Business Issues 11

3. Basic Stance on Selecting Accounting Standards 13

4. Consolidated Financial Statements and Significant Notes 14

   1. Consolidated Statement of Financial Position 14

   2. Consolidated Statement of Profit or Loss 16

   3. Consolidated Statement of Comprehensive Income 17

   4. Consolidated Statement of Changes in Equity 18

   5. Consolidated Statement of Cash Flows 20

   6. Going Concern Assumption 21

   7. Notes to Consolidated Financial Statements 21

1. Qualitative Information Regarding the Consolidated Business Performance

   1. Business Results Summary (April 1, 2025-March 31, 2026)

      • Highlights

      Both revenue and adjusted EBITDA marked a record high for the sixth consecutive fiscal year. Revenue: 2.03 trillion yen (up 6.2% year on year); adjusted EBITDA: 496.6 billion yen (up 5.5% year on year).

The revenue for the consolidated fiscal year ended March 31, 2026 amounted to 2,036.3 billion yen (up 6.2% year on year) resulting in the highest fiscal year revenue. This was driven mainly by PayPay's consolidated results (PayPay Corporation, PayPay Card Corporation, PayPay Bank Corporation, and others) in the Strategic Business. In addition, the consolidation of BEENOS Inc. and LINE MAN CORPORATION PTE. LTD. in the Commerce Business contributed to the increase, despite the impact of the system outage caused by a ransomware attack at ASKUL Corporation in October 2025.

Adjusted EBITDA for the consolidated fiscal year ended March 31, 2026 amounted to 496.6 billion yen (up 5.5% year on year), a record-high, due to the abovementioned revenue growth, despite an increase in selling, general and administrative expenses mainly due to higher sales promotion costs, personnel expenses, and depreciation and amortization.

In addition, operating income for the consolidated fiscal year ended March 31, 2026 amounted to 341.3 billion yen (up 8.3% year on year). This was mainly due to the recognition of a gain on remeasurement relating to business combinations accompanied by the consolidation of LINE MAN CORPORATION PTE. LTD. in the second quarter of the fiscal year ended March 31, 2026.

Notes:

1. In the first quarter of the fiscal year ended March 31, 2026, the standards for allocating personnel expenses of technology divisions and expenses related to data centers and internal infrastructure were revised. Accordingly, the segment information for the previous consolidated fiscal year has been retroactively revised.

2. In the third quarter of the fiscal year ended March 31, 2026, services have been transferred between segments following an internal reorganization. Accordingly, the segment information for the previous consolidated fiscal year has been retroactively revised.

3. Figures in Adjustments represent inter-segment transactions and general corporate expenses not belonging to any reporting segment.