LY Corporation · TSE:4689
LY — Q2 2026 Earnings Presentation
39 slides from LY's earnings presentation, Nov 5, 2026
Slide 1: LY Corporation Earnings FY2026 Q2 Appendix
LY Corporation Earnings FY2026 Q2 Appendix November 5, 2026 Security Code: 4689
Slide 2: Table of Contents
Table of Contents 1 Financial Results – Consolidated 2 Financial Results – by Segment 3 Non-Financial Information
Slide 3: Table of Contents (Details)
Table of Contents (Details) 1. Financial Results - Consolidated II. Commerce Business • Change in Operating Income…….…………….................………………..4 • Performance (P/L)…………………………….……...……….…..........24 • Change in Adjusted Net Income…………....….………...........................5 • Key Services and Produ
Slide 4: Financial Results – Consolidated
Table of Contents 1 Financial Results – Consolidated 2 Financial Results – by Segment 3 Non-Financial Information
Slide 5: Change in Operating Income
Consolidated Change in Operating Income (JPY B) (JPY B) FY2025 FY2026 YoY Q2 Q2 YoY +30.1% Revenue 505.7 563.6 +57.9 YoY -18.2% Increase in SG&A COGS 137.0 152.8 +15.8 +19.5 +15.8 Increase in SG&A 293.6 313.1 +19.5 119.4 COGS +57.9 97.6 Other income and 44.3 - -44.3 Increase in expenses 75.0 revenue
Slide 6: Change in Adjusted Net Income
Consolidated Change in Adjusted Net Income1 (JPY B) Income tax and other -62.4 PPA amortization Other non-operating expense, non-recurring Increase in adjusted EBITDA2 income and expenses losses/gains +26.2 +5.2 -9.1 +4.6 +3.2 63.7 Increase in D&A Increase in equity in -36.2 losses of associates (Yo
Slide 7: Change in Adjusted EPS
Consolidated Change in Adjusted EPS1 (JPY) Income tax and other -8.9 PPA amortization Other non-operating expense, non-recurring Increase in adjusted EBITDA2 income and expenses losses/gains +3.9 +0.7 -1.3 +0.7 -0.5 Increase in D&A Increase in equity in -5.2 9.2 (YoY -17.8%) losses of associates and
Slide 8: Equity in Profit/Losses of Associates and Joint Ventures
Consolidated Equity in Profit/Losses of Associates and Joint Ventures Equity in Profit/Losses of Associates and Joint Ventures Key Equity Method Equity Based in Business Affiliates Ratio1 (JPY B) Contents Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 WEBTOON U.S. 23.1% • Operation of e-manga services 0.1 Entertainm
Slide 9: Fair Market Value of Investment Assets
Consolidated Fair Market Value of Investment Assets1 (JPY B) Name of Company Fair Market Value Equity Ratio PayPay 519.7 31.0% ZOZO 507.4 52.8% ASKUL 51.7 46.9% Kurashiru 28.0 53.9% Demae-can 6.4 37.2% WEBTOON Entertainment 53.3 23.1% LINE Pay Taiwan 50.3 57.9% Total 1,216.9 - 1. As of September 30,
Slide 10: Consolidation Impact of Subsidiaries (PPA)
Consolidated Consolidation Impact of Subsidiaries (PPA) ZOZO PayPay Annual Annual Amortization Amortization Amount Amortization Amount Amortization Item Period Item Period (JPY B) Amount (JPY B) Amount (Straight Line) (Straight Line) (JPY B) (JPY B) PPA 502.1 13.2 - PPA 51.3 5.1 - Customer base 18-2
Slide 11: Financial Indicators
Consolidated Financial Indicators CAPEX1 Net Cash Flow (Excluding Financial Business2/Financial Business)1 (JPY B) (JPY B) 60.6 Net Cash Flow Net Cash Flow (Excluding Financial Business) (Financial Business) 23.8 Consolidated dividend -59.2 Changes in debts, etc. +0.0 37.1 36.7 Operating3 Investing
Slide 12: Financial Indicators: Interest-Bearing Debt and Net Leverage
Consolidated Financial Indicators Interest-Bearing Debt & Net Interest-Bearing Debt1 Net Leverage Ratio3 (Excluding financial business2) (Excluding financial business2) (JPY B) (JPY B) 1,449.6 Net leverage ratio: maintain 3X or less 1,371.4 1,384.7 1,328.9 1,317.5 210.1 178.7 201.7 179.2 191.1 686.5
Slide 13: Consolidated Capital Allocation
Consolidated Capital Allocation FY2026-2028/Excluding Financial Business Cost of Equity (JPY B) 1,160.0 High Carryovers 100.0 CAPEX Approx. 30% Cost of Equity (last 12 months) 4.2 to 5.3% Operating CF Shareholder Approx. 40% 1,060.0 returns Predictability Aim for ROE 8% or more in FY2030, balancing
Slide 14: Key One-Time Gains/Losses (FY2026 Q1 – Q2)
Consolidated Key One-Time Gains/Losses (FY2026 Q1 – FY2026 Q2) Impact on P/L Amount Period One-time Gains/Losses Outline Item (JPY B) Operating Adjusted Adjusted Income EBITDA EPS Q2 N/A FY2026 Q1 N/A . 13
Slide 15: Key One-Time Gains/Losses (FY2025 Q1 – Q4)
Consolidated Key One-Time Gains/Losses (FY2025 Q1 – FY2025 Q4) Impact on P/L Amount Period One-time Gains/Losses Outline Item (JPY B) Operating Adjusted Adjusted Income EBITDA EPS Impairment loss on investments in Other non-operating Q4 associates and joint ventures Impairment loss related to LINE N
Slide 16: Financial Results – by Segment
Table of Contents 1 Financial Results – Consolidated 2 Financial Results – by Segment 3 Non-Financial Information
Slide 17: I. Media Business
I. Media Business
Slide 18: Media Business Performance (P/L)
Media Business Performance (P/L) (JPY Million) FY2025 Q21,2,3 FY2026 Q21,2,3 YoY Revenue 180,230 183,580 +1.9% Advertising revenue 141,680 139,827 -1.3% Search advertising 43,116 42,393 -1.7% Account advertising 34,960 39,067 +11.7% Display advertising3 63,603 58,366 -8.2% User subscriptions, etc. (
Slide 19: Change in Search Advertising
Media Business Change in Search Advertising Search Advertising Revenue/ %YoY Growth Factors Behind Change in Search Advertising Revenue (JPY B) (JPY B) -1.7% LY Corporation’s -6.8% % Growth websites -9.5% Product -11.3% improvements, etc. -13.2% 43.1 +1.7 42.3 -0.5 44.6 45.0 -2.0 43.1 43.0 42.3 Part
Slide 20: LINE MINI App
Media Business LINE MINI App No. of LINE MINI Apps LINE MINI App MAU (Thousands) (Mil) 38 30.16 35 28.97 33 30 22.18 25 20.48 16.85 YoY +48.4% YoY +79.0% Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 19
Slide 21: Media Business Key Services and Products
Media Business Key Services and Products Item Breakdown Search advertising LY Ads Search Ads Account advertising LINE Official Account, LINE Promotion Sticker, LINE de Obo (Participate with LINE), LINE Flyer Display advertising ー Programmatic advertising LY Ads Display Ads (Auction) Reservation adve
Slide 22: Key Advertising Products
Media Business Key Advertising Products Item Fee Calculation Placement Pages/Product Outline Type of Advertiser Search advertising ー Pay per click Yahoo! JAPAN Search LY Ads Search Ads Large enterprises/SMBs Pay per action Partner websites Account advertising ー Fixed monthly cost Messages delivered
Slide 23: Key Advertising Products: Display Advertising
Media Business Key Advertising Products Item Fee Calculation Placement Pages Type of Advertiser Display advertising ー Programmatic ー Chat list LY Ads Pay per click LINE NEWS Large enterprises/SMBs Display Ads (Auction) Pay per view Yahoo! JAPAN News Yahoo! JAPAN Weather, etc. Shopping-related advert
Slide 24: II. Commerce Business
II. Commerce Business
Slide 25: Commerce Business Performance (P/L)
Commerce Business Performance (P/L) (JPY Million) FY2025 Q21,2 FY2026 Q21,2 YoY Revenue 216,513 240,502 +11.1% LY Corporation 46,652 76,301 +63.6% Shopping business 19,847 23,006 +15.9% Reuse business 14,395 16,580 +15.2% Services e-commerce 11,926 36,353 +204.8% Other 483 360 -25.4% ZOZO, ASKUL 169
Slide 26: Commerce Business Key Services and Products
Commerce Business Key Services and Products Item Breakdown LY Corporation ー Yahoo! JAPAN Shopping, LINE Brand Catalog, LINE GIFT, LINE SHOPPING1, Shopping business overseas e-commerce (LINE SHOPPING (Taiwan, Thailand), GIFTSHOP, MyShop) Reuse business Yahoo! JAPAN Auction, Yahoo! JAPAN Flea Market,
Slide 27: Revision to Disclosure Categories for E-Commerce Transaction Value
Commerce Business Revision to the Disclosure Categories for E-Commerce Transaction Value Revised the disclosure categories to align with the P/L and highlight the growth of each service, separating the categories into “LY Corporation” and “ZOZO and ASKUL” Until FY2025 Q4 FY2026 Q1 Onwards E-commerce
Slide 28: III. Strategic Business
III. Strategic Business
Slide 29: Strategic Business Performance (P/L)
Strategic Business Performance (P/L) (JPY Million) FY2025 Q21,2 FY2026 Q21,2 YoY Revenue 109,658 140,778 +28.4% PayPay (Consolidated)3 91,515 117,505 +28.4% Other fintech 18,413 23,272 +28.3% LINE Fintech (LINE Pay Taiwan, LINE Bank Taiwan, LINE Credit, LINE MAN (Payment)) 17,771 22,462 +26.4% Cost
Slide 30: Financial Subsidiaries B/S
Strategic Business Financial Subsidiaries B/S PayPay (Consolidated)1 Other Fintech Business (JPY B) FY2026 Q1 FY2026 Q2 Change FY2026 Q1 FY2026 Q2 Change Assets 5,493.7 5,729.6 +235.9 977.3 998.6 +21.3 Cash and deposits 491.0 570.0 +78.9 123.6 117.6 -6.0 Other assets 5,002.6 5,159.6 +156.9 853.7 881
Slide 31: Capital Structure of Domestic Financial Businesses
Strategic Business Capital Structure of Domestic Financial Businesses1 Consolidated Subsidiary Intermediate Holding Company LY Corporation 100% Z Intermediate Holdings Corporation 50.0% B Holdings Corporation 54.6%2 PayPay Corporation 100% 100% 51.0% 100% 75.5% 75.2% PayPay Insurance LINE Securities
Slide 32: Strategic Business Key Services and Products
Strategic Business Key Services and Products Item Breakdown Fintech ― PayPay PayPay, PayPay Card, Credit Engine, PayPay Bank, PayPay Securities (Consolidated) PayPay Insurance, LINE Pay Taiwan, LINE Bank Taiwan, LINE Score, Other fintech LINE Pocket Money, LINE BITMAX1, LINE FX 1. LINE BITMAX termin
Slide 33: IV. International Business
IV. International Business
Slide 34: International Business Development
International Business International Business Development Strong presence across Asia, particularly in Taiwan and Thailand Majority of revenue generated from advertising, stickers, and game businesses on messenger platform International Business Revenue7 Taiwan 22 mil MAU1,3 (JPY B) (Population: 23.
Slide 35: Non-Financial Information
Table of Contents 1 Financial Results – Consolidated 2 Financial Results – by Segment 3 Non-Financial Information 34
Slide 36: Board of Directors and Capital Structure
Non-Financial Information Board of Directors and Capital Structure Independent outside directors comprising 66.6% of board, ensuring effective governance through separation of roles. Female directors represent 33.3% of board. Parent company is A Holdings Corporation, a joint venture between SoftBank
Slide 37: Remuneration Policy and Executive Remuneration Plan
Non-Financial Information Remuneration Policy and Executive Remuneration Plan Executive remuneration plan designed for medium/long-term rewards by setting high stock-based incentives Foster a sense of shared interest with shareholders, intended to enhance corporate value through sustainable growth R
Slide 38: 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 39: WOW Our Users!
LY Corporation WOW Our Users!