As announced in "Decision on Merger Policy Among Z Holdings Corporation and Its Wholly Owned Subsidiaries, Mainly LINE Corporation and Yahoo Japan Corporation" dated February 2, 2023, "Determination of Details of Reorganization Based on the Policy of Merger with Wholly Owned Subsidiaries, Change in Trade Name, and Partial Amendments to the Articles of Incorporation (Trade Name/Business Purpose)" dated April 28, 2023, and "Decisions on Intra-Group Reorganization (Change of Second-Tier Subsidiaries Through Dividend Distributions in Kind by First-Tier Subsidiaries and Absorption-Type Mergers and Absorption-Type Company Splits with Wholly Owned Subsidiaries) and Change of Trade Name of a Subsidiary" dated July 12, 2023 (hereinafter collectively the "Announcements"), LY Corporation (hereinafter the "Company") has completed the scheduled procedures related to the intra-Group reorganization (hereinafter the "Reorganization") described in the Announcements, as of October 1, 2023. The Reorganization consists of: absorption-type mergers in which the Company is the surviving company and each of Yahoo Japan Corporation, Z Entertainment Corporation, and Z Data Corporation (hereinafter collectively "Yahoo Japan and Other Disappearing Companies") is the disappearing company; an absorption-type company split in which LINE Corporation (currently, Z Intermediate Global Corporation) is the split company and the Company is the successor company; and an absorption-type company split in which the Company is the split company and Z Financial Corporation is the successor company. As of the same date, the trade name has been changed to "LY Corporation".
In addition, as announced in "Changes in Organizational Structure, Directors and Officers as of October 1, 2023" on August 3, 2023, the Company changed its organizational structure and the management structure as of October 1, 2023, in line with the Reorganization.
Under the new structure, the entire Group will work together to accelerate the pace of synergy creation, pursue improvements in product creation and profitability, and continue to take on the challenge of creating new value.
1. Outline of LY Corporation
(1) Trade name: LY Corporation (Former trade name: Z Holdings Corporation)
(2) Location: 1-3 Kioicho, Chiyoda-ku, Tokyo
(3): Names and titles of representatives:
Kentaro Kawabe, Chairperson and Representative Director
Takeshi Idezawa, President and Representative Director, CEO (Chief Executive Officer)
Junho Shin, Representative Director, CPO (Chief Product Officer)
(4) Main business: Internet advertising business, e-commerce business, members services business, and other businesses; and managing of group companies and other operations
(5)
Paid-in capital: JPY 247,094 million (as of March 31, 2023)
(6) Fiscal year end: March 31
2. Directors and Officers
- Directors
Name, Title
Kentaro Kawabe, Chairperson and Representative Director
Takeshi Idezawa, President and Representative Director, CEO (Chief Executive Officer)
Jungho Shin, Representative Director, CPO (Chief Product Officer)
Taku Oketani, Director, CSO (Chief Strategy Officer)
Yoshio Usumi, Outside Director (Independent Director), Full-time Audit and Supervisory Committee Member
Maiko Hasumi, Outside Director (Independent Director), Audit and Supervisory Committee Member
Tadashi Kunihiro, Outside Director (Independent Director), Audit and Supervisory Committee Member
- Executive Corporate Officers
Name, Title
In Joon Hwang, Executive Corporate Officer, CGIO (Chief Global Investment Officer)
Ryosuke Sakaue, Executive Corporate Officer, CFO (Chief Financial Officer)
Euivin Park, Executive Corporate Officer, CTO (Chief Technology Officer)
Noboru Nakatani, Executive Corporate Officer, CTSO (Chief Trust & Safety Officer)
Gen Miyazawa, Executive Corporate Officer, Senior General Manager, Generative AI Group
Chiaki Fujimon, Executive Corporate Officer, Search Services Company CEO
Mitsunobu Ashizawa, Executive Corporate Officer, Search Services Company COO
Makoto Hide, Executive Corporate Officer, Commerce Company CEO
Takeshi Shimamura, Executive Corporate Officer, Local/UGC Company CEO
Hiroshi Kataoka, Executive Corporate Officer, Media Company CEO
Jun Masuda, Executive Corporate Officer, Entertainment Company CEO
Youngsu Ko, Executive Corporate Officer, Communication Company CEO
Yuki Ikehata, Executive Corporate Officer, Marketing Solution Company CEO
Shohei Niki, Executive Corporate Officer, Marketing Solution Company CPO
Hideyuki Nakahara, Executive Corporate Officer, EVPoE, Head of Service Infrastructure Group
Tomohiro Ikebe, Executive Corporate Officer, EVPoE, Head of Product Development Group
Masahiko Kokubo, Executive Corporate Officer, EVPoE, Head of Technology Management Group
Kiyoshi Sasaki, Executive Corporate Officer, Head of Data Group
Seokho Yang, Executive Corporate Officer, Data Group CTO
Shoji Yasuoka, Executive Corporate Officer, Head of Corporate Planning Office
Ayumi Inagaki, Executive Corporate Officer, Head of CEO Office
3. Future Prospects
(1) Impact on the Company's consolidated financial performance
There will be no change in the consolidated performance estimate for the fiscal year ending March 31, 2024 announced in "Results for the Fiscal Year Ended March 31, 2023 (IFRS)" dated April 28, 2023, as the impacts such as cost reductions through the Reorganization have already been factored into the estimate. (Furthermore, the "Gain/loss on extinguishment of tie-in shares" stated in (2) below will be eliminated in the consolidated financial statements, so there will be no effect on the Company's consolidated financial statements.) The Company will promptly announce any new disclosures regarding this matter should they become necessary.
(2) Impact on the Company's non-consolidated financial performance
As a result of the Reorganization, the Company will record a "Gain/loss on extinguishment of tie-in shares" in its non-consolidated financial statements at the time the Company merges Yahoo Japan and Other Disappearing Companies through an absorption-type merger, and the Company assumes the rights and obligations of LINE Corporation through an absorption-type company split. The amount is still being calculated, thus the specific amount is unknown at this time. The Company will promptly announce the amount of the impact on its non-consolidated financial results, if and when such disclosure becomes necessary.
In addition, as announced in "Changes in Organizational Structure, Directors and Officers as of October 1, 2023" on August 3, 2023, the Company changed its organizational structure and the management structure as of October 1, 2023, in line with the Reorganization.
Under the new structure, the entire Group will work together to accelerate the pace of synergy creation, pursue improvements in product creation and profitability, and continue to take on the challenge of creating new value.
1. Outline of LY Corporation
(1) Trade name: LY Corporation (Former trade name: Z Holdings Corporation)
(2) Location: 1-3 Kioicho, Chiyoda-ku, Tokyo
(3): Names and titles of representatives:
Kentaro Kawabe, Chairperson and Representative Director
Takeshi Idezawa, President and Representative Director, CEO (Chief Executive Officer)
Junho Shin, Representative Director, CPO (Chief Product Officer)
(4) Main business: Internet advertising business, e-commerce business, members services business, and other businesses; and managing of group companies and other operations
(5)
Paid-in capital: JPY 247,094 million (as of March 31, 2023)
(6) Fiscal year end: March 31
2. Directors and Officers
- Directors
Name, Title
Kentaro Kawabe, Chairperson and Representative Director
Takeshi Idezawa, President and Representative Director, CEO (Chief Executive Officer)
Jungho Shin, Representative Director, CPO (Chief Product Officer)
Taku Oketani, Director, CSO (Chief Strategy Officer)
Yoshio Usumi, Outside Director (Independent Director), Full-time Audit and Supervisory Committee Member
Maiko Hasumi, Outside Director (Independent Director), Audit and Supervisory Committee Member
Tadashi Kunihiro, Outside Director (Independent Director), Audit and Supervisory Committee Member
- Executive Corporate Officers
Name, Title
In Joon Hwang, Executive Corporate Officer, CGIO (Chief Global Investment Officer)
Ryosuke Sakaue, Executive Corporate Officer, CFO (Chief Financial Officer)
Euivin Park, Executive Corporate Officer, CTO (Chief Technology Officer)
Noboru Nakatani, Executive Corporate Officer, CTSO (Chief Trust & Safety Officer)
Gen Miyazawa, Executive Corporate Officer, Senior General Manager, Generative AI Group
Chiaki Fujimon, Executive Corporate Officer, Search Services Company CEO
Mitsunobu Ashizawa, Executive Corporate Officer, Search Services Company COO
Makoto Hide, Executive Corporate Officer, Commerce Company CEO
Takeshi Shimamura, Executive Corporate Officer, Local/UGC Company CEO
Hiroshi Kataoka, Executive Corporate Officer, Media Company CEO
Jun Masuda, Executive Corporate Officer, Entertainment Company CEO
Youngsu Ko, Executive Corporate Officer, Communication Company CEO
Yuki Ikehata, Executive Corporate Officer, Marketing Solution Company CEO
Shohei Niki, Executive Corporate Officer, Marketing Solution Company CPO
Hideyuki Nakahara, Executive Corporate Officer, EVPoE, Head of Service Infrastructure Group
Tomohiro Ikebe, Executive Corporate Officer, EVPoE, Head of Product Development Group
Masahiko Kokubo, Executive Corporate Officer, EVPoE, Head of Technology Management Group
Kiyoshi Sasaki, Executive Corporate Officer, Head of Data Group
Seokho Yang, Executive Corporate Officer, Data Group CTO
Shoji Yasuoka, Executive Corporate Officer, Head of Corporate Planning Office
Ayumi Inagaki, Executive Corporate Officer, Head of CEO Office
3. Future Prospects
(1) Impact on the Company's consolidated financial performance
There will be no change in the consolidated performance estimate for the fiscal year ending March 31, 2024 announced in "Results for the Fiscal Year Ended March 31, 2023 (IFRS)" dated April 28, 2023, as the impacts such as cost reductions through the Reorganization have already been factored into the estimate. (Furthermore, the "Gain/loss on extinguishment of tie-in shares" stated in (2) below will be eliminated in the consolidated financial statements, so there will be no effect on the Company's consolidated financial statements.) The Company will promptly announce any new disclosures regarding this matter should they become necessary.
(2) Impact on the Company's non-consolidated financial performance
As a result of the Reorganization, the Company will record a "Gain/loss on extinguishment of tie-in shares" in its non-consolidated financial statements at the time the Company merges Yahoo Japan and Other Disappearing Companies through an absorption-type merger, and the Company assumes the rights and obligations of LINE Corporation through an absorption-type company split. The amount is still being calculated, thus the specific amount is unknown at this time. The Company will promptly announce the amount of the impact on its non-consolidated financial results, if and when such disclosure becomes necessary.