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November 5, 2026 LY Corporation Earnings FY2026 Q2 Appendix Security Code: 4689
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1 Financial Results – Consolidated 2 Financial Results – by Segment 3 Non-Financial Information Table of Contents
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1. Financial Results - Consolidated • Change in Operating Income…….…………….................………………..4 • Change in Adjusted Net Income…………....….………...........................5 • Change in Adjusted EPS………………………………….........................6 • Equity in Profit/Losses of Associates and Joint Ventures.......................7 • Fair Market Value of Investment Assets...................................................8 • Consolidation Impact of Subsidiaries (PPA)………….……........…………9 • Financial Indicators……………………………………….…................10,11 • Capital Allocation................................................…………….………….12 • Key One-Time Gains/Losses (FY2025 Q1– FY2026 Q2) ......…...13,14 2. Financial Results – By Segment I. Media Business • Performance (P/L)………………………….…..……………………...17 • Change in Search Advertising………..…….……….…..….…………18 • LINE MINI App................................................................................. 19 • Key Services and Products.............................................................. 20 • Key Advertising Products………..................…………………...…21, 22 II. Commerce Business • Performance (P/L)…………………………….……...……….…..........24 • Key Services and Products... …………….…………………….…..…25 • Revision to the Disclosure Categories for E-commerce Transaction Value…….........................................................................................26 III. Strategic Business • Performance (P/L)………………...……………….…….....…………..28 • Financial Subsidiaries B/S.……………………………...……………..29 • Capital Structure of Key Domestic Financial Businesses………......30 • Key Services and Products……………….……………….....………..31 IV. International Business • International Business Development…………….…...…………….…33 3. Non-Financial Information • Board of Directors and Capital Structure……………..………………..…35 • Remuneration Policy and Executive Remuneration Plan………………36 Table of Contents (Details)
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1 Financial Results – Consolidated 2 Financial Results – by Segment 3 Non-Financial Information Table of Contents
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Consolidated Change in Operating Income (JPY B) FY2025 Q2 FY2026 Q2 YoY Revenue 505.7 563.6 +57.9 COGS 137.0 152.8 +15.8 SG&A 293.6 313.1 +19.5 Other income and expenses 44.3 - -44.3 Operating income 119.4 97.6 -21.7 One-time factor 44.3 - -44.3 Operating income (Normalized) 75.0 97.6 +22.6 +15.8 Increase in COGS Increase in SG&A +19.5 75.0 +57.9 Increase in revenue 97.6 +44.3 One-time factor (Gain on remeasurement relating to business combinations for LINE MAN) 119.4 -44.3 Other income and expenses FY2025 Q2 (Normalized) FY2026 Q2FY2025 Q2 (JPY B) YoY -18.2% YoY +30.1% 4
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Consolidated Change in Adjusted Net Income1 63.7 Increase in adjusted EBITDA2 +26.2 Other non-operating income and expenses +5.2 Income tax and other -62.4 +4.6 Increase in D&A +3.2 Increase in equity in losses of associates and joint ventures PPA amortization expense, non-recurring losses/gains -9.1 (YoY -18.4%) 52.0 -36.2 Non-controlling interests (JPY B) FY2025 Q2 FY2026 Q2 1. Adjusted net income: Net income attributable to owners of the parent ± EPS adjustment items ± tax equivalent on some EPS adjustment items. EPS adjustment items: ± EBITDA adjustment items + amortization of identifiable intangible assets arising from business combinations ± non-recurring gains/losses in other non-operating income/expenses. 2. Adjusted EBITDA: Operating income + depreciation & amortization ± EBITDA adjustment items. Depreciation & amortization: Depreciation, depreciation of right-of-use assets, etc. EBITDA adjustment items: Gains/losses on non-recurring and non- cash transactions within operating revenue and expenses (loss on retirement of fixed assets, impairment losses, stock compensation expenses, gains 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. Definitions changed from FY2022 Q3. Added certain rents to depreciation and amortization, and gains/losses on sales of shares held by certain funds to EBITDA adjustment items. 5 Decrease in income tax expense due to reassessment of PayPay's deferred tax asset recoverability -57.5
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Consolidated Change in Adjusted EPS1 9.2 Increase in adjusted EBITDA2 +3.9 Other non-operating income and expenses +0.7 Income tax and other -8.9 +0.7 Increase in D&A -0.5 Increase in equity in losses of associates and joint ventures PPA amortization expense, non-recurring losses/gains -1.3 (YoY -17.8%) 7.6 -5.2 Non-controlling interests (JPY) 1. Adjusted EPS: Adjusted net income/average number of common stocks outstanding. Adjusted net income: Net income attributable to owners of the parent ± EPS adjustment items ± tax equivalent on some EPS adjustment items. EPS adjustment items: ± EBITDA adjustment items + amortization of identifiable intangible assets arising from business combinations ± non-recurring gains/losses in other non-operating income/expenses. 2. Adjusted EBITDA: Operating income + depreciation & amortization ± EBITDA adjustment items. Depreciation & amortization: Depreciation, depreciation of right-of-use assets, etc. EBITDA adjustment items: Gains/losses on non-recurring and non- cash transactions within operating revenue and expenses (loss on retirement of fixed assets, impairment losses, stock compensation expenses, gains 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. Definitions changed from FY2022 Q3. Added certain rents to depreciation and amortization, and gains/losses on sales of shares held by certain funds to EBITDA adjustment items. FY2025 Q2 FY2026 Q2 6 Decrease in income tax expense due to reassessment of PayPay's deferred tax asset recoverability -8.2
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Consolidated 0.1 -0.8 -0.5 -0.8 -1.0 -0.5 -0.4 -1.1 -0.4 -0.7 -1.8 -0.9 0.2 0.1 0.1 -2.9 -2.0 -1.5 - 1.1 - 1.5 -5.3 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 ValueCommerce Demae-can WEBTOON Entertainment Equity in Profit/Losses of Associates and Joint Ventures Others Key Equity Method Affiliates Based in Equity Ratio1 Business Contents WEBTOON Entertainment U.S. 23.1% • Operation of e-manga services Kakao Games Korea - • Planning, development, and operation of online games Commerce Demae-can Japan 37.2% • Operation of website specializing in home delivery IPX Korea 52.1% • Operation of IP-related business Payment/Finance Kashikorn LINE Company Thailand 50.0% • Internet-only bank PT. Bank KEB Hana Indonesia Indonesia 20.0% • Internet-only bank LINE NEXT Korea 50.0% • Planning, development, and operation of Web3 service platform Equity in Profit/Losses of Associates and Joint Ventures (JPY B) 71. As of September 30, 2026, Equity ratio of Kakao Games is undisclosed.
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Consolidated 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 - (JPY B) Fair Market Value of Investment Assets1 1. As of September 30, 2026 8
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Consolidated Item Amount (JPY B) Annual Amortization Amount (JPY B) Amortization Period (Straight Line) PPA 51.3 5.1 - Customer relationship (merchants, etc.) 51.3 5.1 10 years ZOZO PayPay Item Amount (JPY B) Annual Amortization Amount (JPY B) Amortization Period (Straight Line) PPA 502.1 13.2 - Customer base (shops/users ） 322.0 - 18-25 years Trademarks1 178.7 - Non- amortized Other2 1.4 - 4 years Consolidation Impact of Subsidiaries (PPA) 1. Indefinite-lived intangibles 2. Amortization completed in FY2023 Q3. 9
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Consolidated 33.2 26.3 36.8 27.3 29.9 0.4 10.8 23.8 9.4 1.5 33.6 37.1 60.6 36.7 31.4 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Financial Indicators Beginning Balance March 31, 2026 1,043.9 1,068.0 Net Cash Flow (Excluding Financial Business2/Financial Business)1 (JPY B) Net Cash Flow (Excluding Financial Business) Net Cash Flow (Financial Business) Ending Balance September 30, 2026 Consolidated dividend -59.2 Changes in debts, etc. +0.0 1,068.0 1,265.0 Operating +162.1 Investing -82.1 Investing -124.4 Financing -59.1 Operating3 +294.7 Financing3 +5.8 +20.9 +176.1 1. Figures are rounded down to the nearest million yen and then rounded off to the nearest 100 million yen. 2. Financial business includes PayPay Corporation, PayPay Card Corporation, PayPay Bank Corporation, etc., and the financial subsidiaries of LINE Financial Corporation. 3. Includes adjustment of the securitization of the credit card receivables (transferred from financing cash flow to operating cash flow), and adjustment of transactions within the Group. CAPEX1 (JPY B) Property and Equipment / Intangible Assets Right-of-Use Assets 10
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Consolidated 506.2 474.3 474.3 489.4 489.1 686.5 675.3 652.1 750.1 694.0 178.7 179.2 191.1 210.1 201.7 1,371.4 1,328.9 1,317.5 1,449.6 1,384.7 814.7 781.2 730.8 844.0 777.1 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Bonds/CP Loan Lease Liabilities Net Interest-Bearing Debt Financial Indicators Interest-Bearing Debt & Net Interest-Bearing Debt1 (Excluding financial business2) (JPY B) Net Leverage Ratio3 (Excluding financial business2) (JPY B) Net leverage ratio: maintain 3X or less 401.7 386.0 382.4 392.3 401.1 814.7 781.2 730.8 844.0 777.1 2.03x 2.02x 1.91x 2.15x 1.94x Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Adjusted EBITDA Net Interest-Bearing Debt Net Leverage Ratio³ 1. Net interest-bearing debt＝Interest bearing debt – Cash and cash equivalents. The figures are rounded down to the nearest million yen and then rounded off to the nearest 100 million yen. 2. Financial business includes PayPay Corporation, PayPay Card Corporation, PayPay Bank Corporation, etc., and the financial subsidiaries of LINE Financial Corporation. 3. Net leverage ratio＝Net interest-bearing debt/Adjusted EBITDA (figures for the last 12 months used for calculating adjusted EBITDA). The figures are rounded down to the nearest million yen and then rounded off to the nearest 100 million yen. 11
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Consolidated Cost of Equity (last 12 months) 4.2 to 5.3% Aim for ROE 8% or more in FY2030, balancing growth investments and shareholder returns 1,060.0 Operating CF Carryovers 100.0 CAPEX Shareholder returns Growth investments (M&A, etc.) Approx. 30% or more Approx. 40% Approx. 30% Utilize financial leverage as needed Predictability Low High Financing 1,160.0 Repayment of interest-bearing liabilities, etc. FY2026-2028/Excluding Financial Business (JPY B) Cost of Equity 12 Capital Allocation
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Consolidated Key One-Time Gains/Losses (FY2026 Q1 – FY2026 Q2) Period One-time Gains/Losses Outline Amount (JPY B) Item Impact on P/L Operating Income Adjusted EBITDA Adjusted EPS FY2026 Q2 N/A Q1 N/A . 13
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Consolidated Key One-Time Gains/Losses (FY2025 Q1 – FY2025 Q4) Period One-time Gains/Losses Outline Amount (JPY B) Item Impact on P/L Operating Income Adjusted EBITDA Adjusted EPS FY2025 Q4 Impairment loss on investments in associates and joint ventures (LINE NEXT) Impairment loss related to LINE NEXT Corporation 11.3 Other non-operating expenses - - - Q3 Gain on sale of shares (Remember & Company) Gain recognized due to the sale of shares in Remember & Company Co., Ltd, an equity-method affiliate 12.4 Other non-operating income - - - Q2 Impairment loss on investments in associates and joint ventures (Demae-can) Impairment loss related to Demae-can Co., Ltd. 7.1 Other non-operating expenses - - - Gain on remeasurement relating to business combinations (LINE MAN) Gain recognized due to the acquisition of shares in LINE MAN CORPORATION PTE. LTD., resulting in the company becoming a consolidated subsidiary 44.3 Commerce segment “Other income and expenses” Yes - - Q1 Gain on remeasurement relating to business combinations (LINE Bank Taiwan) Gain recognized due to the capital increase in LINE Bank Taiwan Limited, resulting in the company becoming a consolidated subsidiary 14.5 Strategic segment “Other income and expenses” Yes - - Gain on remeasurement relating to business combinations (PayPay Securities) Gain recognized due to the share acquisition and subscription to a third-party allotment of shares in PayPay Securities Corporation by PayPay Corporation, resulting in PayPay Securities Corporation becoming a consolidated subsidiary 2.5 Strategic segment “Other income and expenses” Yes - - Note: Names of the items under the “Item” column coincide with the Financial Data Sheet. 14
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1 Financial Results – Consolidated 2 Financial Results – by Segment 3 Non-Financial Information Table of Contents
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I. Media Business
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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. (Vertical/entertainment/digital content/communication, etc.) 38,550 43,752 +13.5% Cost of goods sold 33,000 31,636 -4.1% Gross profit 147,229 151,943 +3.2% Selling, general and administrative expenses 96,512 95,076 -1.5% Sales promotion cost + Advertising and promotional expenses 11,515 12,118 +5.2% Other selling, general and administrative expenses 84,997 82,958 -2.4% Other revenue and expenses - - N/A Operating income (Operating income margin) 50,717 (28.1%) 56,866 (31.0%) +12.1% Depreciation and EBITDA adjustment items 17,332 17,987 +3.8% Adjusted EBITDA (Margin) 68,049 (37.8%) 74,853 (40.8%) +10.0% 1. In FY2025 Q3, services were transferred between segments as part of an organizational restructuring. As a result, figures for FY2025 Q1, and Q2 have been retroactively revised. 2. In FY2026 Q1, services were transferred between segments as part of an organizational restructuring. Furthermore, the standards for allocating expenses related to the back office, data centers, and internal infrastructure were revised. As a result, figures for FY2025 have been retroactively revised. 3. Excludes Shopping-related advertising revenue and advertising revenue of ZOZO, Inc. (These advertising revenues are recorded under the Commerce Business segment.) 17
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Media Business Change in Search Advertising 38.5 39.9 40.7 39.0 38.3 4.5 4.6 4.3 3.9 4.0 43.1 44.6 45.0 43.0 42.3 -13.2% -9.5% -11.3% -6.8% -1.7% Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 42.343.1 -0.5 Partners’ websites -2.0 Decrease in no. of searches/slowdown in advertising demand Q2’25 Q2’26 Product improvements, etc. +1.7 Adjustments to LY Ads placements/slowdown in advertising demand Search Advertising Revenue/ %YoY Growth (JPY B) Factors Behind Change in Search Advertising Revenue (JPY B) LY Corporation’s Websites % Growth Partners’ Websites LY Corporation’s websites 18
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Media Business LINE MINI App 38 25 30 33 35 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 30.16 16.85 20.48 28.97 22.18 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 YoY+79.0%YoY+48.4% No. of LINE MINI Apps (Thousands) LINE MINI App MAU (Mil) 19
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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 advertising LY Ads Display Ads (Guaranteed) Other LINE Part Time Jobs User subscriptions, etc. LINE STICKERS, LINE GAME, LINE Fortune, LINE MUSIC, LINE Manga, LYP Premium, ebookjapan, Yahoo! JAPAN Mail 20
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Media Business Key Advertising Products Item Fee Calculation Placement Pages/Product Outline Type of Advertiser Search advertising ー LY Ads Search Ads Pay per click Pay per action Yahoo! JAPAN Search Partner websites Large enterprises/SMBs Account advertising ー LINE Official Account Fixed monthly cost Pay-as-you-go Messages delivered to users who have friended the account Large enterprises/SMBs/Local governments LINE Promotion Sticker Fixed fee Pay-as-you-go Free stickers designed for businesses for user communications Large enterprises/SMBs/Local governments LINE de Obo (Participate with LINE) Basic cost Optional cost In-store sales promotion solution utilizing LINE Large enterprises/SMBs 21
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Media Business Key Advertising Products Item Fee Calculation Placement Pages Type of Advertiser Display advertising ー Programmatic ー LY Ads Display Ads (Auction) Pay per click Pay per view Chat list LINE NEWS Yahoo! JAPAN News Yahoo! JAPAN Weather, etc. Large enterprises/SMBs Shopping-related advertising (Auction) Pay per conversion Yahoo! JAPAN Shopping Tenants of Yahoo! JAPAN Shopping Reservation ー LY Ads Display Ads (Guaranteed) Pay per viewable impression Pay per guaranteed period, etc. Chat list LINE NEWS Yahoo! JAPAN Top Page Large enterprises/Local governments Shopping-related advertising (Guaranteed) Pay per guaranteed period, etc. Yahoo! JAPAN Shopping Tenants of Yahoo! JAPAN Shopping 22
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II. Commerce Business
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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 169,861 164,200 -3.3% Cost of goods sold 96,793 110,767 +14.4% Gross profit 119,720 129,735 +8.4% Selling, general and administrative expenses 104,975 109,718 +4.5% Sales promotion cost + Advertising and promotional expenses 25,326 27,235 +7.5% Other selling, general and administrative expenses 79,649 82,482 +3.6% Other revenue and expenses 44,377 - N/A Operating income (Operating income margin) 59,121 (27.3%) 20,016 (8.3%) -66.1% Depreciation and EBITDA adjustment items -25,591 21,274 N/A Adjusted EBITDA (Margin) 33,530 (15.5%) 41,291 (17.2%) +23.1% 1. In FY2025 Q3, services were transferred between segments as part of an organizational restructuring. As a result, figures for FY2025 Q1 and Q2 have been retroactively revised. 2. In FY2026 Q1, services were transferred between segments as part of an organizational restructuring. Furthermore, the standards for allocating expenses related to the back office, data centers, and internal infrastructure were revised. As a result, figures for FY2025 have been retroactively revised. 24
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Commerce Business Key Services and Products Item Breakdown LY Corporation ー Shopping business Yahoo! JAPAN Shopping, LINE Brand Catalog, LINE GIFT, LINE SHOPPING1, overseas e-commerce (LINE SHOPPING (T aiwan, Thailand), GIFTSHOP , MyShop) Reuse business Yahoo! JAPAN Auction, Yahoo! JAPAN Flea Market, BEENOS Services e-commerce Yahoo! JAPAN Travel, Ikyu.com, LINE TRAVEL (Taiwan), LINE MAN ZOZO/ASKUL ー ZOZO ZOZOTOWN, ZOZOUSED, Lyst ASKUL ASKUL BtoB business (ASKUL, SOLOEL ARENA2, APMRO, FEED DENTAL), LOHACO, Charm 1. LINE SHOPPING in Japan terminated its service on June 1, 2026. 2. SOLOEL ARENA changed its service name to ASKUL on June 3, 2026. 25
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Commerce Business 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” Revision to the Disclosure Categories for E-Commerce Transaction Value FY2026 Q1 OnwardsUntil FY2025 Q4 E-commerce transaction value Total transaction values of domestic merchandise, domestic services, domestic digital content, and overseas e- commerce Domestic merchandise ー Shopping business Yahoo! JAPAN Shopping, ZOZOTOWN, LOHACO, Charm, LINE Brand Catalog, LINE GIFT, LINE SHOPPING1, LINE FRIENDS, Yahoo! JAPAN Quick Mart1 Reuse business Yahoo! JAPAN Auction, Yahoo! JAPAN Flea Market, ZOZOUSED, BEENOS ASKUL BtoB ASKUL, SOLOEL ARENA, APMRO, FEED DENTAL Domestic services Yahoo! JAPAN Travel, Ikyu.com, PayPay Gourmet, Ikyu.com for Restaurants, Demae-can Domestic digital content ebookjapan, LINE Manga, LINE MUSIC, LINE STICKERS, LINE GAME, LINE Fortune, other paid digital content Overseas e-commerce LINE SHOPPING (Taiwan, Thailand), GIFTSHOP, MyShop, ZOZOFIT, Lyst, LINE FRIENDS, LINE TRAVEL, LINE MAN, LINE STICKERS, LINE GAME, DOSI1 E-commerce transaction value Total transaction values of LY Corporation, ZOZO, ASKUL as well as previously disclosed digital content, LINE FRIENDS and Demae- can LY Corporation ー Shopping business Yahoo! JAPAN Shopping, LOHACO, LINE GIFT, LINE Brand Catalog, LINE SHOPPING (Taiwan, Thailand), GIFTSHOP Reuse business Yahoo! JAPAN Auction, Yahoo! JAPAN Flea Market, BEENOS Services Yahoo! JAPAN Travel, Ikyu.com, LINE TRAVEL (Taiwan), PayPay Gourmet, Ikyu.com for Restaurants, LINE MAN ZOZO, ASKUL ー ZOZO ZOZOTOWN, ZOZOUSED, ZOZOFIT, Lyst ASKUL ASKUL BtoB, SOLOEL ARENA, APMRO, FEED DENTAL, Charm 1. Service terminated. 26
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III. Strategic Business
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Strategic Business (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 of goods sold 8,928 12,544 +40.5% Gross profit 100,730 128,233 +27.3% Selling, general and administrative expenses 88,677 100,551 +13.4% Sales promotion cost + Advertising and promotional expenses 18,690 19,617 +5.0% Other selling, general and administrative expenses 69,986 80,934 +15.6% Other revenue and expenses - - N/A Operating income (Operating income margin) 12,052 (11.0%) 27,681 (19.7%) -129.7% Depreciation and EBITDA adjustment items 11,027 11,333 +2.8% Adjusted EBITDA (Margin) 23,080 (21.0%) 39,015 (27.7%) +69.0% PayPay Consolidated3 25,863 40,154 +55.3% LINE Fintech (LINE Pay Taiwan, LINE Bank Taiwan, LINE Credit, LINE MAN (Payment)) 1,632 2,768 +69.6% Performance (P/L) 1. In FY2025 Q3, services were transferred between segments as part of an organizational restructuring. As a result, figures for FY2025 Q1 and Q2 have been retroactively revised. 2. In FY2026 Q1, services were transferred between segments as part of an organizational restructuring. Furthermore, the standards for allocating expenses related to the back office, data centers, and internal infrastructure were revised. As a result, figures for FY2025 have been retroactively revised. 3. Figures are shown after the elimination of internal transactions between the companies and have been independently calculated following relevant IFRS adjustments. 28
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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 +156.9 853.7 881.0 +27.3 Liabilities 5,043.7 5,267.2 +223.4 674.2 697.1 +22.9 Interest-bearing liabilities 766.0 870.1 +104.1 104.0 100.3 -3.7 Other liabilities 4,277.7 4,397.1 +119.3 570.2 596.8 +26.6 Equity 449.9 462.4 +12.5 303.1 301.4 -1.7 1. PayPay consolidated financial statements, IFRS basis, unaudited 29
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Strategic Business Capital Structure of Domestic Financial Businesses1 PayPay Corporation 54.6%2 PayPay Insurance Service Corporation 100% LINE Credit Corporation 51.0% LINE Securities Corporation 100% Z Intermediate Holdings Corporation 100% B Holdings Corporation 50.0% PayPay Card Corporation 100% PayPay Securities Corporation 75.2% PayPay Bank Corporation 75.5% LY Corporation Consolidated Subsidiary Intermediate Holding Company 1. Percentage of voting rights as of September 30, 2026. 2. Total of B Holdings Corporation’s shareholding ratio 47.1% and LY Corporation’s shareholding ratio 7.5%. 30
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Strategic Business 1. LINE BITMAX terminated its services on June 1, 2026. Key Services and Products Item Breakdown Fintech ― PayPay (Consolidated) PayPay, PayPay Card, Credit Engine, PayPay Bank, PayPay Securities Other fintech PayPay Insurance, LINE Pay Taiwan, LINE Bank Taiwan, LINE Score, LINE Pocket Money, LINE BITMAX1, LINE FX 31
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IV. International Business
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International Business 38.0 62.0 64.1 69.2 71.7 Q2'25 Q3'25 Q4'25 Q1'26 Q2'26 Strong presence across Asia, particularly in Taiwan and Thailand Majority of revenue generated from advertising, stickers, and game businesses on messenger platform International Business Development Taiwan 22 mil MAU1,3 (Population: 23.21 mil2) No.1 Market share6 Thailand 54 mil MAU1,3 (Population: 65.80 mil4) No.1 Market share6 Indonesia 4 mil MAU1,3 (Population: 287.19 mil5) International Business Revenue7 (JPY B) YoY +88.7% 1. As of September 30, 2026. 2. Population as of September 30, 2026. Figures are quoted from data published by the Ministry of Interior. 3. The number of LINE users on iOS and Android devices, excluding the number of LINE users, etc. on other devices authenticated with the same phone number. 4. Population for 2025. Figures are quoted from data published by the Ministry of Interior. 5. Population as of June 30, 2026. Figures are quoted from data published by the Ministry of Interior. 6. Data for Taiwan and Thailand are based on market research from 2023~2025 for each country and region. 7. Figures for local financial results are converted to Japanese yen using the average exchange rate from the beginning of the f iscal year. 33
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Table of Contents 1 Financial Results – Consolidated 2 Financial Results – by Segment 3 Non-Financial Information 34
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Non-Financial Information Board of Directors Outside Director (Independent Director) Genichi Tamatsuka Outside Director (Independent Director) Full-time Audit and Supervisory Committee Member Yoshio Usumi Outside Director (Independent Director) Audit and Supervisory Committee Member Yuko Takahashi Outside Director (Independent Director) Audit and Supervisory Committee Member Aki Shimizu 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 Corp. and NAVER Corporation. Board of Directors and Capital Structure Capital Structure SoftBank NAVER 62.4%1 50.0% 50.0% LY Corporation A Holdings Takeshi Idezawa President and Representative Director, CEO Ryosuke Sakaue Director, CFO 1. Percentage of voting rights. 35
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Non-Financial Information Type % Purpose/Position Stock-based remuneration Stock options (50-90%) 60-80% • Incentive to contribute to the enhancement of shareholder value and corporate value over the medium- to long-term RSU Plan (10-50%) • Alignment with shareholders • Retention of talented management personnel Monetary remuneration Cash bonuses 10-20% • Incentive to contribute to entire Group’s performance (revenue, adjusted EBITDA, adjusted EPS) , and to the enhancement of corporate value Base remuneration 10-20% • Base remuneration based on roles and responsibilities 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 Remuneration Policy and Executive Remuneration Plan 10-20% 10-20% 60-80% Stock-based Remuneration Cash Bonuses Base Remuneration Revision of Directors’ Remuneration Plan1 1. Excludes directors serving on the Audit and Supervisory Committee. 36
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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 could cause actual results to differ materially from those discussed in the forward-looking statements. Such factors include, but are not limited to, the items mentioned in “Risk Factors” in “Consolidated Financial Statements and Independent Auditor's Report” (Japanese only). Unauthorized use of the information or the data in this document is not permitted. Unless otherwise specified, English-language documents are prepared solely for the convenience of non-Japanese speakers. If there is any inconsistency between the English-language documents and the Japanese-language documents, the Japanese-language documents will prevail.
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