Z : Notice of Differences between Consolidated Business Results for FY2022 and FY2021

April 28, 2023

To whom it may concern

Z Holdings Corporation

Takeshi Idezawa

President and Representative Director, CEO

Stock Code: 4689

Notice of Differences between Consolidated Business Results for FY2022 and FY2021

Z Holdings Corporation hereby announces the differences between the consolidated business results for the fiscal year ended March 31, 2023 (April 1, 2022 - March 31, 2023; hereinafter "FY2022") and those for the fiscal year ended March 31, 2022 (April 1, 2021 - March 31, 2022; hereinafter "FY2021").

1. Differences between the consolidated business results for FY2022 and FY2021

					(JPY Million)
			Income		Net income
		Operating	before	Net
	Revenue	attributable to
	income	income	income
		owners of the parent
			taxes
FY2022 (A)	1,672,377	314,533	235,219	189,163	178,868
FY2021 (B)	1,567,421	189,503	158,542	91,631	77,316
Year-on-Year	104,955	125,029	76,676	97,532	101,551
Change (Amount)
(A－B)
Year-on-Year	6.7	66.0	48.4	106.4	131.3
Change (%)

2. Reasons for the differences - Revenue

The revenue for FY2022 amounted to 1,672.3 billion yen, a year-on-year increase of 104.9 billion yen (up 6.7%), resulting in the highest fiscal year revenue.

In addition to the impact of the consolidation of PayPay Corporation in October 2022, this was due to an increase in the revenue in the Commerce Business and increases in LINE Corporation's account ads revenue and Yahoo Japan Corporation's search advertising revenue.

• Operating income

Operating income for FY2022 amounted to 314.5 billion yen, a year-on-year increase of 125.0 billion yen (up 66.0%). This was due to the abovementioned revenue growth, cost optimization mainly in the Commerce Business, and recording of gain on remeasurement relating to business combinations resulting from the consolidation of PayPay Corporation etc., despite the absence of gain on sales of YJFX, Inc. recorded in the last fiscal year, impacts of the consolidation of PayPay Corporation and the weakened advertising market, etc.

Disclaimer

This is an English translation of the release. This translation is prepared and provided for the purpose of the reader's convenience. All readers are recommended to refer to the original version in Japanese of the release for complete information.

• Income before income taxes, net income, net income attributable to owners of the parent
  Income before income taxes, net income, net income attributable to owners of the parent for FY2022, increased year on year due to the abovementioned increases in revenue and income, etc., despite the recording of impairment losses regarding the investments accounted for using equity method related to Demae-can Co., Ltd., etc.

Disclaimer

This is an English translation of the captioned release. This translation is prepared and provided for the purpose of the reader's convenience. All readers are recommended to refer to the original version in Japanese of the release for complete information.