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    Eiji Maeda • SMBC Nikko Securities Inc.

    Eiji Maeda's questions to LY Corp (YAHOY) leadership

    Eiji Maeda's questions to LY Corp (YAHOY) leadership • Q4 2024

    Question

    Eiji Maeda inquired about the long-term investment structure for the PayPay IPO and sought a detailed breakdown of the fiscal year 2025 guidance for each business segment.

    Answer

    Executive Ryosuke Sakaue explained that the PayPay IPO is intended to realize its corporate value and enhance management discipline, clarifying that LY Corporation does not plan to sell its stake. For the FY'25 guidance, Sakaue projected high single-digit revenue growth for the Media segment, driven by double-digit growth in account ads, though profit is expected to be flat due to AI investments. The Commerce segment is also expected to see high single-digit growth, while the Strategic business anticipates revenue growth in the lower 20% range.

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    Eiji Maeda's questions to LY Corp (YAHOY) leadership • Q1 2025

    Question

    Eiji Maeda of SMBC Nikko Securities inquired about the potential for future one-time gains or losses that could significantly impact operating profit, following recent events like the gain on loss of control and last year's Webtoon valuation gain. He also asked for the expected earnings contribution from the closure of the domestic LINE Pay service from fiscal year 2025 onwards.

    Answer

    Executive Ryosuke Sakaue responded that no major one-time items impacting operating profit are expected for the remainder of the fiscal year. He assured that any future items would be disclosed and explained in advance. Regarding LINE Pay, Sakaue confirmed that while no profit impact is expected this fiscal year, the closure will gradually reduce the negative profit impact from the domestic business in FY2025 and beyond, though a specific amount could not be disclosed.

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    Eiji Maeda's questions to LY Corp (YAHOY) leadership • Q4 2023

    Question

    Eiji Maeda asked about the JPY 15 billion security investment, questioning if it's a one-time or recurring expense, and inquired about the sustainability of the 10% year-over-year growth in Yahoo! JAPAN Shopping's transaction value.

    Answer

    Executive Ryosuke Sakaue explained that the JPY 15 billion security cost is split between employee system separation and terminating NAVER outsourcing. He noted a similar budget will be needed for FY'25, with costs expected to decrease from FY'26. Executive Makoto Hide attributed the shopping growth to the LYP Premium campaign's success in acquiring new, active commerce users and reactivating existing members, stating the company aims to sustain this growth level with cost discipline.

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    Eiji Maeda's questions to LY Corp (YAHOY) leadership • Q3 2024

    Question

    Eiji Maeda inquired about the strategy and expected impact of developing an in-house alternative ad platform and asked if there were signs of brand advertising budgets shifting from traditional media to high-quality online display ads.

    Answer

    Makoto Hide, CEO of Commerce Company, explained the new ad platform aims to create an integrated marketing solution and is not expected to cause a material change in revenue initially. Yuki Ikehata noted that while there are early signs of brand ad budgets moving to digital earlier than usual, the magnitude is not yet sufficient to offset the overall decline in display ad revenue for Q4.

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