Interim report
Page 1
Results for the Six Months Ended September 30, 2026 (FY2026-2Q) [IFRSs] November 5, 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 Tel: +81-3-6779-4900 Contact: Ryosuke Sakaue, Director, CFO Scheduled Semi-Annual Securities Report Submission Date: November 9, 2026 Scheduled Dividend Payment Date: － Financial Results Supplementary Briefing Materials to Be Created: Yes Financial Results Investors Meeting to Be Held: Yes (for Financial Analysts) 1. Consolidated Results for the Six Months Ended September 30, 2026 (April 1, 2026–September 30, 2026) (Amounts less than one million yen are omitted) (1) Consolidated Business Performance (April 1, 2026–September 30, 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 % Six-month period ended Sep. 30, 2026 1,117,668 12.3 198,862 (7.3) 175,866 (7.8) 127,007 (37.4) 92,909 (32.8) 138,681 (35.9) Six-month period ended Sep. 30, 2025 995,367 7.6 214,526 24.2 190,703 31.8 203,039 88.1 138,313 58.5 216,416 148.5 Adjusted EBITDA Adjusted net income Adjusted EPS Basic earnings per share Diluted earnings per share Millions of yen % Millions of yen % Yen % Yen Yen Six-month period ended Sep. 30, 2026 306,558 22.0 118,589 10.9 17.29 13.1 13.54 13.49 Six-month period ended Sep. 30, 2025 251,275 7.2 106,912 17.0 15.28 25.4 19.77 19.66 (2) Consolidated Financial Position Total assets Total equity Equity attributable to owners of the parent Ratio of equity attributable to owners of the parent Millions of yen Millions of yen Millions of yen % As of Sep. 30, 2026 11,847,603 3,763,781 3,048,145 25.7 As of March 31, 2026 11,205,191 3,713,509 2,998,805 26.8 2. Dividends Dividends per share 1Q 2Q 3Q Year end Full year Yen Yen Yen Yen Yen Fiscal year ended March 31, 2026 － 0.00 － 7.30 7.30 Fiscal year ending March 31, 2027 － 0.00 Fiscal year ending March 31, 2027 (Estimates) － 12.00 12.00 (Note 1) Revision to dividends previously announced: Yes (Note 2) For more information on the revision to the dividend forecast, please refer to "Notice Regarding Revisions to Consol idated Performance Estimates and Year-End Dividend Forecast (Dividend Increase)" announced today (November 5, 2026). 3. Consolidated Performance Estimates for FY2026 (April 1, 2026–March 31, 2027) Revenue Adjusted EBITDA Adjusted EPS Millions of yen % Change YoY Millions of yen % Change YoY Yen % Change YoY Fiscal year ending March 31, 2027 2,330,000 14.4 640,000 28.9 35.0 21.8 (Note 1) Revision to performance estimates previously announced: Yes (Note 2) For more information on the revision to consolidated performance estimates, please refer to "Notice Regarding Revisions to Consolidated Performance Estimates and Year-End Dividend Forecast (Dividend Increase)" announced today (November 5, 2026). 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 on page 6 of the Results for the Six Months (Attachments).
Page 2
Notes (1) Significant changes in scope of consolidation during the period: None Newly consolidated: None Excluded from consolidation: None (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 September 30, 2026 6,888,742,311 shares As of March 31, 2026 6,884,244,856 shares 2) Number of shares of treasury stocks As of September 30, 2026 25,505,766 shares As of March 31, 2026 25,635,999 shares 3) Average number of common stocks outstanding (cumulative from the beginning of the fiscal year) Six months ended September 30, 2026 6,859,852,335 shares Six months ended September 30, 2025 6,997,210,695 shares Note: The number of shares of treasury stocks includes the 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, 2026: 20,196,214 shares; as of September 30, 2026: 20,089,266 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 (cumulative from the beginning of the fiscal year) (*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 busines s 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 other non-operating income/expenses * The Japanese- language originals of the Results for the Six Months are exempt from review by certified public accountants or an audit firm. * 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 performances, 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 Thursday, November 5, 2026.
Page 3
1 ○Table of contents of attachments 1 Qualitative Information Regarding the Consolidated Operating Results······························ 2 (1) Qualitative Information Regarding the Consolidated Business Performance······················· 2 (2) Qualitative Information Regarding the Consolidated Financial Position··························· 7 2 Interim Condensed Consolidated Financial Statements and Significant Notes························ 8 (1) Interim Condensed Consolidated Statement of Financial Position······························· 8 (2) Interim Condensed Consolidated Statement of Profit or Loss··································· 10 (3) Interim Condensed Consolidated Statement of Comprehensive Income························· 11 (4) Interim Condensed Consolidated Statement of Changes in Equity······························· 12 (5) Interim Condensed Consolidated Statement of Cash Flows····································· 14 (6) Notes to Interim Condensed Consolidated Financial Statements································ 15
Page 4
2 1 Qualitative Information Regarding the Consolidated Operating Results (1) Qualitative Information Regarding the Consolidated Business Performance 1. Business Results Summary (April 1, 2026–September 30, 2026) ■ Highlights Revenue came to 1,117.6 billion yen (up 12.3% year on year), and adjusted EBITDA came to 306.5 billion yen (up 22.0% year on year). Both set new records for the highest performance to date in the cumulative consolidated second quarter. Six Months Ended September 30, 2025 (billion yen) Six Months Ended September 30, 2026 (billion yen) Year-on-Year Change (billion yen) Year-on-Year Change (%) Revenue 995.3 1,117.6 122.3 12.3 Adjusted EBITDA 251.2 306.5 55.2 22.0 The revenue for the cumulative consolidated second quarter of the fiscal year ending March 31, 2027 amounted to 1,117.6 billion yen (up 12.3% year on year), representing the highest cumulative consolidated second quarter revenue to date. This was due to an increase in revenue from the consolidation of BEENOS Inc., LINE MAN CORPORATION PTE. LTD., and LINE Bank Taiwan Limited implemented in the previous fiscal year, and an increase in revenue mainly from PayPay Consolidated in the Strategic Business, account advertising and LYP Premium in the Media Business, as well as Yahoo! JAPAN Shopping and the ZOZO Group in the Commerce Business, among others. Adjusted EBITDA for the cumulative consolidated second quarter of the fiscal year ending March 31, 2027 amounted to 306.5 billion yen (up 22.0% year on year), representing the highest cumulative consolidated second quarter earnings to date. This was due to the increased revenues mentioned above, despite an increase in selling, general and administrative expenses mainly due to higher sales promotion costs, commission expenses, and personnel expenses resulting from the abovementioned consolidation of subsidiaries.
Page 5
3 2. Segment Business Results Summary (April 1, 2026–September 30, 2026) Revenue and Adjusted EBITDA by Segment Six Months Ended September 30, 2025 (billion yen) Six Months Ended September 30, 2026 (billion yen) Year-on-Year Change (billion yen) Year-on-Year Change (%) Media Business Revenue 357.7 365.6 7.8 2.2 Adjusted EBITDA 134.7 151.0 16.2 12.1 Commerce Business Revenue 432.4 483.3 50.9 11.8 Adjusted EBITDA 71.6 83.3 11.6 16.3 Strategic Business Revenue 206.1 271.0 64.8 31.4 Adjusted EBITDA 44.4 74.1 29.6 66.8 Other Revenue 4.5 3.8 (0.6) (15.2) Adjusted EBITDA 3.3 2.5 (0.7) (22.9) Adjustments Revenue (5.6) (6.3) (0.6) ― Adjusted EBITDA (2.9) (4.4) (1.5) ― To t al Revenue 995.3 1,117.6 122.3 12.3 Adjusted EBITDA 251.2 306.5 55.2 22.0 Notes: 1. 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 consolidated fiscal year ended March 31, 2026 has been retroactively adjusted. 2. From the first quarter of the fiscal year ending March 31, 2027, services have been transferred between segments following an internal reorganization, and the allocation standards of expenses related to the back office, data centers, and internal infrastructure were revised. Accordingly, the segment information for the consolidated fiscal year ended March 31, 2026 has been revised and restated. 3. Figures in Adjustments represent inter-segment transactions and general corporate expenses not belonging to any reporting segment.
Page 6
4 1) Media Business in the Cumulative Consolidated Second Quarter The revenue of the Media Business for the cumulative consolidated second quarter amounted to 365.6 billion yen (up 2.2% year on year). Adjusted EBITDA amounted to 151.0 billion yen (up 12.1% year on year) due to an increase in revenue, as well as a decreas e in selling, general and administrative expenses which mainly include personnel expenses and generative AI-related expenses. ・ Account advertising: Revenue increased 12.5% year on year, maintaining a high growth, due to an increase in the number of paid accounts and expansion of pay-as-you-go billing in LINE Official Account. ・ Display advertising: Revenue decreased year on year from both programmatic advertising and reservation advertising. ・ Search advertising: Revenue decreased year on year from both LY Corporation's websites and partners' websites. ・ User subscriptions, etc.: Revenue increased 13.0% year on year as LINE-related benefits were well received, and LYP Premium membership continued to show a steady increase. 2) Commerce Business in the Cumulative Consolidated Second Quarter The revenue of the Commerce Business amounted to 483.3 billion yen (up 11.8% year on year) due to increased revenue from the consolidation of BEENOS Inc. and LINE MAN CORPORATION PTE. LTD., as well as increased revenue from Yahoo! JAPAN Shopping and the ZOZO Group. Adjusted EBITDA increased 16.3% year on year, to 83.3 billion yen, as the increase in revenue absorbed the increase in selling, general and administrative expenses resulting from the above consolidation of subsidiaries, including sales promotion costs, advertising, and personnel expenses. 3) Strategic Business in the Cumulative Consolidated Second Quarter PayPay Consolidated GMV (*1) for the cumulative consolidated second quarter amounted to 11.1 trillion yen (up 21.3% year on year) while maintaining steady growth. Furthermore, the loan balance of PayPay Bank Corporation came to 1,397.7 billion yen (up 37.0% year on year). The revenue for the cumulative consolidated second quarter amounted to 271.0 billion yen, representing a 31.4% increase year on year, as a result of growth in PayPay Consolidated, increased revenue from the consolidation of LINE Bank Taiwan Limited in June 2025, and increased revenue from the expansion of the LINE Pay Taiwan business. In addition, adjusted EBITDA amounted to 74.1 billion yen (up 66.8% year on year), as the increase in revenue absorbed the increase in selling, general and administrative expenses, which were mainly commission expenses, personnel expenses, sales promotion costs, and advertising expenses. (*1) Payments via "PayPay Balance," "PayPay Debit," "PayPay Balance Card," "PayPay Credit," "PayPay Card (physical card)," "VISA Debit Card," "Alipay," etc. are included. The use of the "Send/Receive" function of "PayPay Balance" between users and ATM withdrawals using the cash card function of the "VISA Debit Card" are not included. The figures represent the sum of GMVs of PayPay Corporation, PayPay Card Corporation, and PayPay Bank Corporation, with internal transactions eliminated. Figures are rounded down to the nearest billion yen and then rounded off to the nearest 100 billion yen.
Page 7
5 Major services/products of each segment Media Business Search advertising LY Ads Search Ads Account advertising LINE Official Account, LINE Promotion Sticker, LINE de Obo (Participate with LINE), LINE Flyer Display advertising 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 Commerce Business LY Corporation Shopping business Yahoo! JAPAN Shopping, LINE Brand Catalog, LINE GIFT, LINE SHOPPING (*2), overseas e-commerce (LINE SHOPPING (Taiwan, Thailand), GIFTSHOP , MyShop) Reuse business Yahoo! JAPAN Auction, Yahoo! JAPAN Flea Market, Buyee Services e-commerce Yahoo! JAPAN Travel, Ikyu.com, LINE TRAVEL (Taiwan), LINE MAN ZOZO, ASKUL ZOZO ZOZOTOWN, ZOZOUSED, Lyst ASKUL ASKUL BtoB business (ASKUL, SOLOEL ARENA (*3), APMRO, FEED DENTAL), LOHACO, Charm Strategic Business 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 BITMAX (*4), LINE FX (*2) LINE SHOPPING in Japan terminated its service on June 1, 2026. (*3) SOLOEL ARENA changed its service name to ASKUL on June 3, 2026. (*4) LINE BITMAX terminated its service on June 1, 2026.
Page 8
6 3. Outlook for Fiscal Year Ending March 31, 2027 (April 1, 2026–March 31, 2027) Based on the performance results through the cumulative consolidated second quarter, the Company has revised its full-year consolidated performance estimates for the fiscal year ending March 31, 2027, as follows. Revenue is expected to exceed the previous estimate, as ASKUL Corporation and LINE MAN CORPORATION PTE. LTD. in the Commerce Business and PayPay Consolidated in the Strategic Business are performing better than initially anticipated. In terms of income, the increase in revenue described above, together with higher -than-expected profitability from PayPay Consolidated, is expected to offset increases in expenses associated with business expansion, including sales promotion costs and commission expenses. As a result, adjusted EBITDA and adjusted EPS are also expected to exceed the previous forecasts. Revenue (JPY million) Adjusted EBITDA (JPY million) Adjusted EPS (JPY) Previously announced estimates (A) 2,240,000 585,000 30.0 Revised estimates (B) 2,330,000 640,000 35.0 Change (B-A) 90,000 55,000 5.0 Change (%) 4.0% 9.4% 16.7% (Reference) Actual consolidated results for the previous fiscal year (Fiscal year ended March 31, 2026) 2,036,366 496,681 28.73
Page 9
7 (2) Qualitative Information Regarding the Consolidated Financial Position Assets, Liabilities, and Equity 1. Assets Total assets at the end of this consolidated second quarter amounted to 11,847,603 million yen, having increased 642,411 million yen, or 5.7%, since the end of the consolidated fiscal year ended March 31, 2026. The major components of the change in assets were as follows: ・The principal reasons for the change in cash and cash equivalents are as stated in "Cash Flows" below. ・Loans in the credit card business increased compared with the end of the consolidated fiscal year ended March 31, 2026, primarily due to an increase in the transaction volume of the credit card business. ・Loans in the banking business increased compared with the end of the consolidated fiscal year ended March 31, 2026, mainly due to the increase in housing loans. ・Other financial assets increased compared with the end of the consolidated fiscal year ended March 31, 2026, primarily as a result of share acquisitions by PayPay Corporation. 2. Liabilities Total liabilities at the end of this consolidated second quarter amounted to 8,083,821 million yen, having increased 592,139 million yen, or 7.9%, since the end of the consolidated fiscal year ended March 31, 2026. The major components of the change in liabilities were as follows: ・Customer deposits in the banking business increased compared with the end of the consolidated fiscal year ended March 31, 2026, mainly due to an increase in deposits from customers. ・Interest-bearing liabilities increased compared with the end of the consolidated fiscal year ended March 31, 2026 mainly due to an increase in borrowings. 3. Equity Total equity at the end of this consolidated second quarter amounted to 3,763,781 million yen, having increased 50,271 million yen, or 1.4%, since the end of the consolidated fiscal year ended March 31, 2026. The major component of the change in equity was as follows: ・Retained earnings increased compared with the end of the consolidated fiscal year ended March 31, 2026, due to an increase resulting from the recognition of the net income attributable to owners of the parent, despite a decrease due to payment of dividends. Cash Flows At the end of this consolidated second quarter, cash and cash equivalents amounted to 1,265,023 million yen, up 196,991 million yen from the end of the consolidated fiscal year ended March 31, 2026, out of which deposits with the central bank for the banking business amounted to 487,738 million yen. The following is a description of the movements in the main components of cash flow and the factors contributing to the changes for the period under review: Cash flows from operating activities amounted to a total cash inflow of 171,851 million yen, primarily owing to an increase in customer deposits in the banking business and recognition of profit before tax for the period under review, despite cash outflows primarily due to an increase in loans in the banking business. Cash flows from investing activities amounted to a total cash outflow of 207,309 million yen, primarily due to the purchase of investment securities in the banking business and the purchase of other investments, despite cash inflows primarily consisting of proceeds from the sales or redemption of investment securities in the banking business. Cash flows from financing activities amounted to a total cash inflow of 235,063 million yen, primarily due to the net increase in short-term borrowings and proceeds from the issuance of corporate bonds, despite cash outflows mainly due to the redemption of corporate bonds and repayments of long-term borrowings.
Page 10
8 2 Interim Condensed Consolidated Financial Statements and Significant Notes (1) Interim Condensed Consolidated Statement of Financial Position (Millions of yen) As of Mar. 31, 2026 As of Sep. 30, 2026 Increase/decrease Amount Amount Amount Change (%) Assets Cash and cash equivalents 1,068,032 1,265,023 196,991 18.4 Call loans in banking business 52,788 16,449 (36,338) (68.8) Trade and other receivables 539,360 535,719 (3,640) (0.7) Inventories 32,335 31,336 (998) (3.1) Loans in credit card business 1,252,928 1,316,120 63,191 5.0 Investment securities in banking business 1,550,844 1,564,000 13,156 0.8 Loans in banking business 1,615,955 1,832,729 216,773 13.4 Other financial assets 714,667 882,019 167,351 23.4 Property and equipment 259,634 250,975 (8,659) (3.3) Right-of-use assets 198,026 205,694 7,668 3.9 Goodwill 2,191,690 2,195,502 3,812 0.2 Intangible assets 1,309,654 1,293,020 (16,633) (1.3) Investments accounted for using the equity method 192,262 220,820 28,558 14.9 Deferred tax assets 119,529 116,037 (3,492) (2.9) Other assets 107,481 122,152 14,670 13.6 Total assets 11,205,191 11,847,603 642,411 5.7
Page 11
9 (Millions of yen) As of Mar. 31, 2026 As of Sep. 30, 2026 Increase/decrease Amount Amount Amount Change (%) Liabilities and equity Liabilities Trade and other payables 2,218,513 2,260,617 42,104 1.9 Customer deposits in banking business 2,701,160 2,903,911 202,751 7.5 Interest-bearing liabilities 1,961,998 2,322,615 360,616 18.4 Other financial liabilities 92,274 86,184 (6,089) (6.6) Income taxes payable 43,127 40,506 (2,621) (6.1) Provisions 37,180 36,774 (406) (1.1) Deferred tax liabilities 191,944 192,746 802 0.4 Other liabilities 245,482 240,465 (5,016) (2.0) Total liabilities 7,491,682 8,083,821 592,139 7.9 Equity Equity attributable to owners of the parent Common stock 252,134 253,402 1,267 0.5 Capital surplus 1,699,597 1,676,477 (23,119) (1.4) Retained earnings 996,061 1,049,471 53,410 5.4 Treasury stock (13,338) (13,228) 110 － Accumulated other comprehensive income 64,350 82,021 17,671 27.5 Total equity attributable to owners of the parent 2,998,805 3,048,145 49,339 1.6 Non-controlling interests 714,704 715,635 931 0.1 Total equity 3,713,509 3,763,781 50,271 1.4 Total liabilities and equity 11,205,191 11,847,603 642,411 5.7
Page 12
10 (2) Interim Condensed Consolidated Statement of Profit or Loss (Millions of yen) Six Months ended Sep. 30, 2025 Six Months ended Sep. 30, 2026 Increase/decrease Amount Amount Amount Change (%) Revenue 995,367 1,117,668 122,301 12.3 Cost of sales 271,368 305,372 34,003 12.5 Selling, general and administrative expenses 509,472 613,434 103,961 20.4 Operating income 214,526 198,862 (15,664) (7.3) Other non-operating income 3,628 7,940 4,312 118.8 Other non-operating expenses 22,593 23,993 1,400 6.2 Equity in profit (loss) of associates and joint ventures (4,859) (6,942) (2,083) － Profit before tax 190,703 175,866 (14,836) (7.8) Income tax expense (12,336) 48,859 61,195 － Profit for the period 203,039 127,007 (76,031) (37.4) Profit for the period attributable to: Owners of the parent 138,313 92,909 (45,403) (32.8) Non-controlling interests 64,725 34,098 (30,627) (47.3) Profit for the period 203,039 127,007 (76,031) (37.4) Earnings per share attributable to owners of the parent Basic (yen) 19.77 13.54 (6.23) (31.5) Diluted (yen) 19.66 13.49 (6.17) (31.4)
Page 13
11 (3) Interim Condensed Consolidated Statement of Comprehensive Income (Millions of yen) Six Months ended Sep. 30, 2025 Six Months ended Sep. 30, 2026 Profit for the period 203,039 127,007 Other comprehensive income Items that will not be reclassified to profit or loss Remeasurements of defined benefit plans (1,669) (67) Equity financial assets measured at FVTOCI 4,384 (820) Share of other comprehensive income of associates 76 (462) Subtotal 2,790 (1,350) Items that may be reclassified subsequently to profit or loss Debt financial assets measured at FVTOCI (28) (2,881) Exchange differences on translating foreign operations 10,614 15,906 Subtotal 10,586 13,024 Other comprehensive income, net of tax 13,377 11,674 Total comprehensive income 216,416 138,681 Total comprehensive income attributable to: Owners of the parent 149,784 109,824 Non-controlling interests 66,631 28,857 Total comprehensive income 216,416 138,681
Page 14
12 (4) Interim Condensed Consolidated Statement of Changes in Equity Six Months ended September 30, 2025 (Millions of yen) Equity attributable to owners of the parent Non- controlling interests Total equity Common stock Capital surplus Retained earnings Treasury stock Accumulated other comprehen- sive income Total Balance at April 1, 2025 250,128 1,880,031 838,017 (11,704) 41,696 2,998,170 420,745 3,418,915 Profit for the period 138,313 138,313 64,725 203,039 Other comprehensive income, net of tax 11,471 11,471 1,905 13,377 Total comprehensive income for the period － － 138,313 － 11,471 149,784 66,631 216,416 Transactions with owners and other transactions Issue of common stock 1,397 1,753 3,150 3,150 Payment of dividends (10,260) (39,617) (49,877) (9,774) (59,652) Transfer of accumulated other comprehensive income to retained earnings (2,312) 2,312 － － Purchase of treasury stock (148,595) (148,595) (148,595) Cancellation of treasury stock (143,040) 143,040 － － Changes attributable to obtaining or losing control of subsidiaries (44,286) (44,286) 53,786 9,499 Changes in ownership interests in subsidiaries without losing control 1,808 1,808 69,817 71,625 Share-based payment transactions 1,589 1,589 1,589 Other (1,632) 320 823 (488) 1,386 898 Total 1,397 (194,069) (41,608) (4,731) 2,312 (236,699) 115,216 (121,483) Balance at Sep. 30, 2025 251,525 1,685,962 934,722 (16,435) 55,480 2,911,255 602,592 3,513,847
Page 15
13 Six Months ended September 30, 2026 (Millions of yen) Equity attributable to owners of the parent Non- controlling interests Total equity Common stock Capital surplus Retained earnings Treasury stock Accumulated other comprehen- sive income Total Balance at April 1, 2026 252,134 1,699,597 996,061 (13,338) 64,350 2,998,805 714,704 3,713,509 Profit for the period 92,909 92,909 34,098 127,007 Other comprehensive income, net of tax 16,915 16,915 (5,240) 11,674 Total comprehensive income for the period － － 92,909 － 16,915 109,824 28,857 138,681 Transactions with owners and other transactions Issue of common stock 1,267 1,499 2,767 2,767 Payment of dividends (11,933) (38,133) (50,067) (10,791) (60,859) Transfer of accumulated other comprehensive income to retained earnings (756) 756 － － Purchase of treasury stock (538) (538) (538) Changes attributable to obtaining or losing control of subsidiaries － 161 161 Changes in ownership interests in subsidiaries without losing control (12,100) (12,100) (17,550) (29,650) Share-based payment transactions 590 590 590 Other (1,175) (608) 648 (1,135) 255 (880) Total 1,267 (23,119) (39,499) 110 756 (60,484) (27,925) (88,409) Balance at Sep. 30, 2026 253,402 1,676,477 1,049,471 (13,228) 82,021 3,048,145 715,635 3,763,781
Page 16
14 (5) Interim Condensed Consolidated Statement of Cash Flows (Millions of yen) Six Months ended Sep. 30, 2025 Six Months ended Sep. 30, 2026 Amount Amount Cash flows from operating activities: Profit before tax 190,703 175,866 Depreciation and amortization 84,789 95,908 Increase (decrease) in allowance for doubtful accounts (4,611) 11,485 Equity in (profit) loss of associates and joint ventures 4,859 6,942 (Increase) decrease in call loans in banking business (38,406) 36,168 (Increase) decrease in trade and other receivables 1,708 4,100 Increase (decrease) in trade and other payables 76,147 49,721 (Increase) decrease in loans for credit card business (71,762) (64,819) (Increase) decrease in loans in banking business (116,547) (222,137) Increase (decrease) in customer deposits in banking business 276,627 208,038 (Increase) decrease in investment securities in securities business (57,209) (60,722) Other (50,628) (10,373) Subtotal 295,669 230,178 Interest and dividends received 3,171 4,586 Interest paid (9,779) (15,363) Income taxes―paid (57,949) (47,550) Net cash inflow (outflow) from operating activities 231,111 171,851 Cash flows from investing activities: Purchase of investment securities in banking business (266,428) (270,023) Proceeds from sales/redemption of investment securities in banking business 91,658 253,555 Purchase of other investments (74,955) (153,731) Proceeds from withdrawal of time deposits 24,179 38,474 Other (133,026) (75,584) Net cash inflow (outflow) from investing activities (358,571) (207,309) Cash flows from financing activities: Net increase (decrease) in short-term borrowings 126,289 286,641 Proceeds from long-term borrowings 147,788 122,980 Repayments of long-term borrowings (63,119) (63,507) Purchase of treasury stock of subsidiaries (14,797) (19,165) Proceeds from issuance of corporate bonds 100,000 135,000 Redemption of corporate bonds (70,000) (120,000) Proceeds from issuance of commercial papers 418,500 211,000 Redemption of commercial papers (397,500) (220,000) Dividends paid (49,853) (50,040) Dividends paid to non-controlling interests (9,782) (10,436) Repayment of lease liabilities (20,963) (19,599) Other (50,352) (17,808) Net cash inflow (outflow) from financing activities 116,208 235,063 Effects of exchange rate changes on cash and cash equivalents 8,363 (2,614) Net increase (decrease) in cash and cash equivalents (2,888) 196,991 Cash and cash equivalents at the beginning of the period 1,043,944 1,068,032 Cash and cash equivalents at the end of the period 1,041,056 1,265,023
Page 17
15 (6) Notes to Interim Condensed Consolidated Financial Statements 1. Going Concern Assumption Not applicable. 2. Use of Estimates and Judgments In preparing the interim condensed consolidated financial statements under IFRS, the management is required to make judgments, estimates, and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, revenue, and expenses. Actual results may differ from those projected estimates. The estimates and underlying assumptions are continuously reviewed. Revisions to accounting estimates are recognized in the period in which the estimate is revised as well as in future periods. The judgments, estimates and assumptions that have significant impact on the amounts in the interim condensed consolidated financial statements of the LY Corporation Group are consistent with those described in the consolidated financial statements for the previous consolidated fiscal year. 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.