Z : FY2022 Q3 Earnings Slides - Appendix

Security Code: 4689

Z Holdings Corporation Business Results

FY2022 Q3 Appendix

February 2, 2023

FY2022 Q3 Consolidated Business Results

FY2022 Q3 Consolidated Business Results

Whole Group

• Consolidated PayPay in Q3. Recorded highest quarterly revenue despite continued challenging macro environment.
• Decrease in adjusted EBITDA due to changes in market conditions and impact of PayPay consolidation, despite cost optimization and selective focus on key businesses.

Segment	Item	FY2021 Q3	FY2022 Q3	YoY

	Revenue	JPY409.1 B	JPY453.6 B	+10.9%
Whole Group	Adjusted EBITDA	JPY97.9 B	JPY93.5 B	Negative 4.5%
	Adjusted EPS	JPY1.98	JPY0.09	Negative 95.3%
	Advertising Revenue (LINE)1	JPY51.0 B	JPY51.0 B	Negative 0.0%
Media Business	Advertising Revenue (Yahoo Japan)2	JPY102.4 B	JPY100.5 B	Negative 1.9%
	Adjusted EBITDA1	JPY71.3 B	JPY69.7 B	Negative 2.3%
Commerce Business	Group EC Transaction Value3	JPY1,051.3 B	JPY1,118.2 B	+6.4%
Adjusted EBITDA1	JPY39.5 B	JPY42.3 B	+7.2%
Strategic Business	Fintech Revenue1	JPY26.0 B	JPY64.8 B	+148.6%
Adjusted EBITDA1	Negative JPY6.1 B	Negative JPY8.3 B	-
Other/Adjustments	Adjusted EBITDA1	Negative JPY6.8 B	Negative JPY10.1 B	-

1. From FY2022 Q1, Yahoo Japan Corporation's financial service which had formerly been recorded in Strategic Business has been transferred to Media Business. LINE Corporation's services that had been recorded in Adjustments have been transferred to each business segment. Figures have been retroactively revised from FY2021 Q1.
2. Includes Shopping-related advertising revenue. Shopping-related advertising revenue is classified in Commerce Business.
3. Domestic merchandise transaction value + domestic services transaction value + domestic digital content transaction value + overseas e-commerce transaction value. Figure for FY2021 Q3 has been

retroactively revised to include overseas e-commerce transaction value. Please refer to page 27 of the Appendix for definition of overseas e-commerce transaction value.

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FY2022 Q3 Factors of Change in Operating Income

Whole Group

(JPY B)		FY2022 Q3	YoY Difference	YoY		Major Factors of Change1 (JPY B)
Revenue		453.6	+44.5	+10.9%	•	PayPay +33.3	•	ZOZO +5.1
	•	LINE +7.9	•	ASKUL Group +4.8
Cost of sales		132.1	+5.7	+4.6%	•	LINE +4.5	•	eBOOK Initiative Japan
	•	ASKUL Group +4.3		-4.4
SG&A		282.4	+60.7	+27.4%	•	PayPay +36.9	•	Ikyu +3.8
	•	LINE +12.6
(Major items)	Personnel expense	69.2	+12.5	+22.1%	•	LINE +5.8
•	Yahoo Japan +1.4
		Sales promotion	40.6	+7.4	+22.5%	•	LINE -2.3
		cost	•	Yahoo Japan -4.0
		Depreciation and	37.6	+4.5	+13.6%	•	Yahoo Japan +1.3
		amortization	•	LINE +1.1
		Business	36.0	+8.3	+30.1%	•	LINE +2.5
		commissions	•	PayPay Card +1.0
Other income & expenses	151.7	+151.7	N/A	Gain on remeasurement relating to business combinations due to
consolidation of PayPay +147.3
Operating income	190.7	+129.7	+212.5%

1. Figures in "Major Factors of Change" are figures after consolidation adjustments.

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FY2022 Q3 Factors of Change in Net Income Attributable to Owners of the Parent

Whole Group

(JPY B)	FY2022 Q3	YoY Difference	YoY		Major Factors of Change (JPY B)
Operating income	190.7	+129.7	+212.5%
Other non-operating income	0.8	-3.7	-82.1%
Other non-operating expenses	11.6	+8.9	+339.9%
Equity in losses of associates and joint ventures	-7.0	+7.4	N/A	•	PayPay +4.7
• LINE Consolidation +3.1 (Demae-can +2.5)
Impairment loss on investments in	31.3	+12.9	+70.3%	•	Demae-can +12.9
associates and joint ventures
Profit before tax	141.6	+111.4	+369.6%
Income tax expense	-1.6	-14.0	-113.6%
Profit for the period	143.2	+125.5	+705.9%
Non-controlling interests	3.4	-1.7	-33.5%
Net income attributable to owners of the parent	139.8	+127.2	+1,010.2%

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