Expansion of the Business Base through Subsidiary Formation and Share Acquisitions

「The tender offer ended on 7 May 2025, and we acquired 10,918,182 common shares of BEENOS㈱ and share acquisition rights representing 417,540 shares for ¥44,675 million in cash. As a result, LINEヤフー㈱'s voting rights ratio in BEENOS㈱ rose to 84.08%, and BEENOS㈱ became a subsidiary. The capital increase was carried out to promote services and further strengthen cooperation with our group in LINE Bank, the banking service operated by LBT in Taiwan, and was completed on 17 June 2025. As of the completion date, the number of common shares in LBT held by LFT was 1,023,000 thousand shares, representing a 51.2% voting rights ownership ratio. As this exceeded a majority, LINEヤフー㈱ obtained control of LBT, and LBT newly became a subsidiary of our group. The acquisition of shares and amendment of the shareholders' agreement were completed on 30 September 2025. As of the completion date stated above, LINEヤフー㈱ obtained control of LMWN, and LMWN newly became a subsidiary of our group.」

「PayPay証券㈱ completed its transition to a subsidiary of PayPay㈱ on 1 April 2025, and PayPay銀行㈱ completed the transition on 11 April 2025.」

「In the Enterprise business, in September 2024 we carried out a share consolidation to make SBテクノロジー㈱, the core ICT services company of our group and our subsidiary, a wholly owned subsidiary.」

「March 2024: Cubic Telecom Ltd. became a subsidiary, with the aim of taking a global leadership role in connected cars, SDCVs and IoT mobility.」

「In November 2023, we and Cubic Telecom Ltd., which is rolling out IoT platforms globally for connected cars and SDCVs (Note 3), agreed that we would acquire 51.0% of Cubic Telecom Ltd.'s shares on a diluted basis (the "Transaction") (Note 4).」

「PayPayカード㈱, a subsidiary of PayPay, began accepting applications for new members of “PayPay Card Gold” in November 2022. Users of “PayPay Card Gold” receive more PayPay points than with “PayPay Card” when using the card to pay for group services such as “SoftBank” and “Y!mobile” smartphones and “Yahoo! Shopping.” In addition, payments through “PayPayあと払い” earn an additional 0.5% in points, and users receive various other benefits, including unlimited access to “Yahoo!プレミアム” benefits. In this way, further group synergies are expected to be created not only through credit cards but also by expanding use of telecommunications and e-commerce services.」

「On the same day, PayPay acquired shares in PayPayカード㈱ from the company’s subsidiary ヤフー㈱, making PayPayカード㈱ a subsidiary. By operating PayPayカード㈱, which has strong service compatibility, as an integrated business with PayPay, the company aims to accelerate decision-making, create synergies and further develop its financial business.」

「The company completed a tender offer for the shares and other securities of ㈱イーエムネットジャパン in June 2021, making the company a subsidiary.」

「In March 2021, the company’s subsidiary Zホールディングス㈱ made LINE㈱ a subsidiary, with the aim of becoming a leading AI technology company in Japan and Asia and eventually worldwide.」

「The increase in Commerce revenue was mainly due to ㈱ZOZO becoming a subsidiary, increased shopping advertising revenue and higher transaction volumes in other commerce services.」

「Commerce revenue increased by ¥41,214 million, or 25.0%, year on year to ¥205,868 million; Media revenue decreased by ¥5,093 million, or 7.0%, to ¥67,502 million; and Other revenue decreased by ¥875 million, or 63.2%, to ¥510 million. The increase in Commerce revenue was mainly due to higher revenue resulting from ㈱ZOZO becoming a subsidiary, increased shopping advertising revenue and higher transaction volumes in other commerce services.」

「In November 2019, Zホールディングス㈱ made ㈱ZOZO, operator of the fashion e-commerce site “ZOZOTOWN,” a subsidiary.」

「On 13 November 2019, the company acquired 152,953 thousand common shares of ㈱ZOZO for ¥400,737 million. As a result, Z Holdings’ voting rights ownership ratio in ㈱ZOZO became 50.1%, and ㈱ZOZO became a subsidiary.」

「At a meeting of its board of directors on 12 September 2019, the company’s subsidiary ヤフー㈱ resolved to acquire common shares of ㈱ZOZO through a tender offer under the Financial Instruments and Exchange Act. The number of shares to be acquired was 152,952,900, and the purchase price was ¥2,620 per common share. The tender offer was scheduled to commence on 30 September 2019 and continue through 13 November 2019.」

「Following ヤフー㈱ becoming a subsidiary, ヤフー㈱, ㈱イーブックイニシアティブジャパン, ㈱一休, ASKUL Corporation, ワイジェイカード㈱, ワイジェイFX㈱, ㈱ジャパンネット銀行 and ValueCommerce Co.,Ltd., among others, became subsidiaries.」

「As a result of these transactions, the number of the company’s subsidiaries and affiliates increased by 41.」

「To support the growth of the MVNO (mobile virtual network operator) business “LINE Mobile” operated by LINEモバイル㈱, the company subscribed on 2 April 2018 to a third-party allotment of shares conducted by LINEモバイル㈱. As a result, the voting rights ratio held by the company’s group increased to 51%, and LINEモバイル㈱ became a subsidiary.」