Z Holdings Corporation (YAHOF) CEO Kentaro Kawabe on Full Year 2019 Results - Earnings Call Transcript

Z Holdings Corporation (OTCPK:YAHOF) Full Year 2019 Earnings Conference Call April 30, 2020 3:30 AM ET

Corporate Participants

Gen Miyazawa - Managing Executive Officer and Executive VP

Kentaro Kawabe - President, Representative Director, President Corporate Officer and CEO

Ryosuke Sakaue - Managing Corporate Officer, Executive VP and Group CFO

Takao Ozawa - Senior Managing Corporate Officer, Executive VP, COO and Director

Conference Call Participants

Yoshitaka Nagao - Nomura Securities Co. Ltd

Mitsunobu Tsuruo - Citigroup Inc

Eiji Maeda - SMBC Nikko Securities Inc

Hiroko Sato - Jefferies LLC, Research Division

Haruka Mori - JP Morgan Chase & Rob Reilly

Masato Araki - Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

Yusuke Okumura - Okasan Securities Co., Ltd.

Oliver Matthew - CLSA Limited

Operator

Thank you very much for participating in Z Holdings Corporation FY 2019 Full Year and Q4 Business Results.

Please access the homepage of Z Holdings so that you will be able to look at the presentation material. In this conference, we have the attendance from Z Holdings, namely Representative Director, President and CEO, Mr. Kentaro Kawabe; Senior Managing Corporate Officer, Mr. Takao Ozawa; EBB CFO, Group CFO, Mr. Ryosuke Sakaue; EVP, Mr. Gen Miyazawa; and EBB Group CTO, and Mr. Chiaki Fujimon.

First of all, I would like to have Mr. Kawabe to walk us through the FY 2019 full year and Q4 results. The floor will be open for Q&A later. We plan to have 1 hour and 30 minutes for this telephone conference.

Without further ado, Mr. Kawabe, please.

Kentaro Kawabe

I am Kentaro Kawabe of Z Holdings. I would like to talk about Z Holdings Corporation FY 2019 Full Year and Q4 Business Results.

Firstly, my deepest condolence to the victims of COVID-19 who lost their lives and my heart wishes a recovery of people infected with the virus. I sincerely appreciate the infection prevention efforts made by medical workers and the work of all the essential service providers, including people in retail, logistics, and power and water utilities. I am very grateful to the investors for participating in the earnings report despite the given situation.

Next page, please. It's Page 1. You see the slide with bold numbers. As you can see, I will walk you through 4 agenda items. And also, I will also talk about our COVID-19 measures and the impact on our business.

Please turn to the next page. From here onward, I would like to summarize our FY '19.

Next page, please. In the FY '18 full year business results announcement, we stated that we will scale up our efforts to create the future in FY '19.

Next page, please. In FY '19, we conducted a large-scale reorganization, starting from the consolidation by SoftBank, then moving on to the holding company structure, followed by the consolidation of ZOZO. To top that, we announced business integration with LINE and launched multiple new services. It was the most dramatic year in our corporate history.

In FY '19, some commented that our hands are full or we are moving too hastily. With hindsight, however, it is critical to move quickly to capture various business opportunities.

Next page, please. Our efforts led to increase in both revenue and income for the full year resulting in exceeding our FY '19 guidance. For the first time, we surpassed JPY 1 trillion in revenue. On top of the increase in revenue, cost efficiency measures contributed in us posting operating income of JPY 152.2 billion.

Next page, please. The impact of COVID-19 expanded in Q4, but thanks to the groundwork and new initiatives implemented in Q3, business results and major KPIs trended favorably. Q4 greatly contributed in us attaining our initial guidance.

Next page, please. Nonetheless, we have to factor in the impact of COVID-19, and depending on the business segment, they are both negative and incident of positive impacts. Future prospect is extremely uncertain, but let me share with you the impact we observed from April 1 to 26.

Firstly, Commerce business, due to stay home-driven consumption, merchandise EC increased. Self-quarantine will greatly affect the inventory level of physical stores and logistics. Through cross-shopping we announced in March, a mechanism to display inventory at off-line shops on Yahoo! EC site and enable purchase, we will do our best to support the business flow.

Next, O2O. Due to self-quarantine, the demand for hotels and restaurants decreased, really hitting Ikyu, Yahoo! Travel and Yahoo! Dining. We are designing services to fully support hotels and restaurants once COVID-19 is contained.

Next, financial and payment. After the emergency state declaration, stay home was tightened, resulting in a slight decline in off-line usage. Having said that, off-line payment was not really affected. Number of users is on the rise. Therefore, all in all, we believe that the impact will be negligible, but then there is a potential that if this trend goes on, there will be a negative impact on us.

Next slide, please. Media business. Various pieces of information got around the net every day, pushing up the traffic as compared to pre-COVID years. In this day and age, therefore, the true value of media business is being tested. Users visit Yahoo! sites trusting reliable data. It is our mission to provide timely information that is reliable so that we can assist users' decision-making. Advertising. Demand in travel and personnel service and jobs is declining. If all the industry segments lean further towards a budget cut, the repercussions will be stronger.

Next page, please. Z Holdings Group provides more than 100 services and our revenue sources and business models are quite diverse. We, therefore, believe that we can dilute the impact of COVID-19. Our strength lies in stable business management, including our financials. We will continue maximizing on this strength to operate our businesses so that we can minimize the negative impact.

Next page, please. And the mid- to long-term policies that we have set from the onset remain unchanged. We will continue our aim to hit record high for FY '23. For that end, we will make bold investment for mid, long period. FY 2020 will be a year for us to take a step forward, so we will remain focused. For business management, in order not to suspend the business function or fall into a situation where decision cannot be made, from the perspective of BCP, we will create a company-wide system to be fully prepared. For investment, we will make proactive investment for a future that we vision to create. But at the same time, we will suspend inessential and nonurgent expenditure for the time being. We scheduled to decrease costs by JPY 10 billion in first quarter compared to the budget. Our execution will be flexible in the trend of the daily business results.

For the announcement of the full year guidance, since there are many unknown factors that could impact the business, we will not announce the forecast now. We will set scenarios in various scale to achieve mid-, long-term strategy.

Let me explain what service Z Holdings Group provides to counter coronavirus. From the early timing where infection spread is concerned, we are to provide accurate information as early as possible and to support the daily lives of the users. Those were the things that we have been focused on. We have been providing summary report of the infection, open and learning content for children next Monday after governments announced on Friday that schools are to be closed. We are also cooperating creating statistics by our data solution.

20 years after our establishment as the domestic Japanese platformer always following Japanese users, we have been thinking what we can do in this contingency or what we should do. Our top priority concept is to place the users first. Our group remains united to serve the users. Hit by COVID-19, people are shifting from off-line to online rapidly; we will continue providing services that is needed at this moment in order to resolve large problems in the society emerging from the coronavirus.

Now let me explain about the topics by business for FY 2019. Next, please. First about the Commerce business. Next, please. The transaction value of e-commerce was up 14.3% year-on-year, growing steadily. The shopping business was up 34.5% year-on-year, supported by the consolidation of ZOZO. Excluding ZOZO, the business grew by 15.7%, with a steady growth of PayPay Mall. For the Reuse business, although YAHUOKU! reduced annual sales promotional expenditure and recognized negative growth, part of YAHUOKU! Sales promotion was strengthened and businesses recovered by plus 1% in the fourth quarter. The e-commerce transaction value of service digital contents maintained double-digit growth. On the other hand, the transaction value of credit card enjoyed synergy with PayPay and boost for cashless rebate program of the government and is growing steadily.

Next page, please. Excluding payment business, the overall e-commerce business is enjoying the growth of transaction value, which is the base of the business, as well as increasing profitability. And as a result, operating income grew to JPY 80.1 billion, up 30% year-on-year. Our operating income is now one of the largest amongst EC operators in Japan. We will continue to strive to maintain #1 position for e-commerce transaction value in Japan and make further efforts to solidify our profit base.

Next, please. Let me explain about what countermeasures we have at Yahoo! for the Commerce business. Next, please. Strengthening logistics and delivery is what EC operators must surely tackle. This has been mentioned already. With regards to this, we have announced new strategies, including tie-up with Yamato Holdings. With this tie-up, we can decrease the burden of the stores. And since the rate of next-day delivery will improve remarkably, it will benefit our users. Our logistics are allocated in several companies, including Yamato Holdings. Therefore, the risk of halting our logistics function by the spread of COVID-19 is low. This will lead to our advantage. Through cross-shopping and cross-shopping engine, we will provide further advantage to both sellers and buyers. By that, we aim to make a strong stride forward to EC #1 in Japan.

Next, please. Next is about coordination with ZOZO. Next, please. In Yahoo! Japan's commerce business, aiming to strengthen fashion category, we acquired ZOZO. With its ZOZO opening ZOZOTOWN in PayPay Mall, number of new buyers who have never shopped in this category increased and the transaction value is also increasing. Many of the new buyers are also new users to ZOZO as well. Since we are supplementing each other, both companies are achieving growth.

Next, please. This is a list of measures for collaboration going forward, and this was announced at third quarter report. High expectation for great synergy existed from the first regarding introduction of PayPay to ZOZO itself. We are scheduling this to happen in the second quarter of FY 2020 by capturing PayPay users, which numbers growing rapidly. We will contribute to further growth of ZOZO main store, and we will create much more synergies by various collaboration going forward.

Next, please. This is about financial and payment. In Q4, number of payments reached 375 million, up seventeen fold year-on-year. Number of registered users totaled 27 million year-on-year, increase of 4.5x. In only 18 months since its launch, PayPay became the unquestionable top smartphone payment service, driving the development of cashless society in Japan.

Next page, please. The growth rate of users surpassed our forecast, so we are bringing forward our monetization plan. Using the well-established credit worthiness and experiences of YJ Card, our subsidiary, we launched PayPay Atobarai lump sum deferred payment service to some users. It is still in a testing phase, but we plan to provide the service to all users after this summer. Functions will be enhanced so that payment business revenue stream can be expanded.

Next page, please. We aim at nurturing PayPay as a super app that touches every aspect of users' daily lives. As you can see from the top page, by one tap, you can access various services. And say if Yahoo! app is a super app connecting people and information, PayPay is another super app, bridging people and money. To continue this journey of becoming a super app, we will keep working on linking with other internal and external services, thus enriching users' lives furthermore.

Next slide, please. Finance business. Next page, please. We provide various services, such as search, easy, payment and travel, all of which trigger actions like inquiring, shopping, reservation and payment. This is our strength, which we can leverage on to realize scenario-based finance, a scheme to propose optimal financial product depending on circumstances, a finance service which only our group can provide. Given the diversity of daily live route programs we have, for example, from YAHUOKU! screen, you're opening to purchase a used item, you can apply for repair insurance as well. When a user takes some action, he or she can purchase or apply for a financial product there and then a one-stop scheme. We will increase such user experience. By realizing scenario-based finance, we will enhance usability, which in turn will make services more attractive. By putting our full fledged effort in promoting this, we will develop finance business to be our third revenue pillar along with our Media and Commerce businesses.

Next page, please. Media business. Next page, please. Full year results were within the range of our guidance. At the outset of FY '19, there was an impact of anti-tracking. At the year-end, COVID-19 hit us hard. However, thanks to continuous product improvements and sales effort, the business rebounded strongly, ending at a 5% growth year-on-year, a positive note at the year-end. In Q4, which we closed recently, paid search and display advertising, in particular, was strong, up 9% year-on-year on upper single-digit growth in a long while.

Next page, please. Following are the media-related initiatives at Yahoo! Next page, please. One of the initiatives to boost our existing advertising revenue is the collaborations with SoftBank, our parent telecom company. In the first half of FY '19, we built a joint sales team. And since the second half, the team has been functioning at full scale. As intended, one, we acquired new clients; two, we increased ad placements from existing clients. Consequently, just in the second half of FY '19, gross revenue went up by JPY 4.4 billion. We will continue reinforcing our collaborations to maximize revenue from the existing advertising as well as integrated marketing activities.

Next page, please. Last fiscal year, we announced a new marketing concept, the integrated marketing solution. As the first service, we believe the sales promotion material linked to PayPay. But this is just only one of our methods. In the past, our method was so-called monetizing the traffic or launching advertisement to the great traffic coming into the media service for monetization. But going forward, leveraging on the accumulated data and utilizing our group assets, such as Yahoo! Japan apps and PayPay that has strong touch points with users, we will provide a totally new marketing solution that only we can provide and no others can imitate. When the integration with LINE will realize, it can also be used as new user touch point. We consider that by this. Our integrated marketing will make us even more solid. We will endeavor to deploy product in full scale and to enhance our product lineup.

Next page, please. This is about the policy for FY 2020. In FY 2019, we have been planting seeds for us, and we overcame many difficulties and expanded our business. 2020 will be a year to nurture the seeds that we planted.

Next page, please. Excuse me. Please hold on. So this is slide, Page 34, please. These are the areas that we would like to focus on FY 2020. There are 4 areas in focus.

Next page, please. First of all, this is to drive portfolio management. Just in recent years, numbers of companies joined our group, enabling us to provide 100 services and more.

Next page, please. These services, more than 100, are not stand-alone. Through the series of actions that users would take, starting from consuming information, purchasing and marketing payment -- and making payment, we will provide end-to-end service by the group as a whole. As such, all the services in the group connect organically. And by referring users, respectively, O2O, the base of monetization will grow even more, maximizing the monetization point, respectively. We will do our utmost to further create group synergy and to make our business base more solid. As mentioned on the onset, although some of our business is impacted by COVID-19, businesses will be supporting each other and, thus, reduce the impact to minimal as a group. This is the strength of portfolio management.

Next page, please. The second area of focus is about strengthening tie-up with SoftBank. We will further strengthen our tie-up with SoftBank, our parent company. Z Holdings is able to expand the width of customers and services, while SoftBank could dig in deeper for members. We are supplementing each other in this way. By tying Yahoo! Japan ID mainly as a start with SoftBank, by capturing SoftBank users, we will raise per user engagement.

Next page, please. The third focus is about business integration with LINE. At the extraordinary shareholders' meeting that took place the other day, the proposal on approval of share exchangement agreement passed with majority. We will continue the progress to integrate the business.

The fourth focus is about appropriate financial discipline. Since the outlook of business performance is unseeable and things are changing day in and day out, in such times, further financial discipline needs to be conducted. Recently, interest-bearing debt is increasing by the acquisition of ZOZO. We will make efforts to maintain appropriate financial leverage focusing on maintaining the financial rating. And as mentioned on the onset, nonurgent inessential cost will be cut for the time being. So by a scheduled base, we will cut cost by JPY 10 billion compared to budget in the first quarter. And we'll make a flexible investment. This is a slide I have already explained. We will make fiscal year 2020 a year to take on various measures and to make a step forward.

Next page, please. Lastly, for FY 2020, there are -- these are the 3 points that Z Holding Group aims to achieve. This is full deployment of scenario finance; realize business integration with LINE, full-scale provision of integration marketing solution. So taking various channels, there could be much ups and downs hit by COVID, but we would like to wait through. We will try to do our utmost, and we ask of you your full support.

That is all from my side, and thank you very much for listening. And after this, we would like to start the Q&A session. And because of the COVID-19, myself, Mr. Kawabe and Mr. Sakaue will be here. Mr. Ozawa, Mr. Fujimon and Mr. Miyazawa will have a call into the system from different locations. According to the online environment, it might take some time for our officers to answer. We ask of you your patience. Thank you.

Question-and-Answer Session

Operator

[Operator Instructions]

Thank you very much, Mr. Kawabe. We would like to open the floor for Q&A. Firstly, Nagao-san of Nomura Securities, please.

YoshitakaNagao

I am Nagao of Nomura Securities. Can you hear me?

UnidentifiedCompanyRepresentative

Yes, I can hear you.

YoshitakaNagao

I have two questions. I would like to ask 2 questions altogether. Is that better for you?

UnidentifiedCompanyRepresentative

Yes, you can ask 2 questions at once.

YoshitakaNagao

First question, it is on Commerce, especially given the impact of COVID-19, when you turn to Page 7, Yahoo! Shopping and PayPay, it went up by a positive 39%. And so I guess you are impacted by COVID. And I want to know what kind of impact there is. I want to know whether the ticket is going up or whether there are more people using these services. So can you tell me the details of the business situation?

The second question. I want to know about the advertising situation given COVID-19. So there is both positive and negative demand. But net-net, is it a positive result or is it a negative result? And as far as you can disclose information, I know that you have to factor in COVID-19, it might be difficult to tell us anything concrete. But throughout the full year, do you think you will be able to enjoy positive growth in revenue? And I want to know the situation as of April 26, and I want to know what is your outlook for this fiscal year.

UnidentifiedCompanyRepresentative

Thank you very much for your question. The first question, about stay home consumption. What kind of products are selling in e-commerce? And are people buying more frequently? Or is the unit price of the ticket is increasing? And Mr. Ozawa will be responding to that question.

TakaoOzawa

This is Ozawa speaking. Thank you very much for your question. As you can imagine, masks and disinfectants and sanitary items are selling very well and also preservatives and also paper. And daily foundry, which you cannot purchase easily at the physical stores, they are selling very well over the net. And Yahoo! Shop is a shopping mall, and we have the inventory across the country. And also, we will be able to ship different items throughout the whole country. And so there is no physical bottleneck because if A doesn't have the inventory, B will be able to cover for the inventory. And also in terms of electronics, some people buy displays and also different power supplies.

And which segment is the contributor? The visitor number is increasing. And Yahoo! Shopping and PayPay Mall are visited by so many users. And especially PayPay Mall is increasing and the conversion rate is increasing. And in terms of the unit price, even though we see more visitors, we are maintaining the average ticket price. Therefore, that is being the major contributor to the increase of Commerce. That's all.

UnidentifiedCompanyRepresentative

I would like to add one more about the digital content. About the stay home consumption such as e-store or rather e-book, we are seeing an increase. Talking about advertising, in Q4, we disclosed the numbers already. We have been impacted by COVID-19. But nonetheless, we are seeing a strong growth. And in current Q1 2020, this is the situation as of April 26. Some industry segment is being impacted by COVID-19, such as travel as well as job seek site. And also at the same time, there are advertisers and governments who are posting an ad. And so there is a limited negative impact. And this is the situation of the advertising as of April 26. The environment will evolve, and we will try to disclose to you the newest information when possible.

So regarding the operating income for the full year, Mr. Sakaue, our CFO, will be responding.

RyosukeSakaue

This is Sakaue speaking. As mentioned by Mr. Kawabe, I want to add some color to his comments. In the first half, every week, there are fluctuations of revenue. There are positive and negative signs. So given the situation, it might be quite difficult for us to come up with any rational outlook for Q1 as well as Q2. So unfortunately, we will not be able to disclose to you the guidance.

Having said that, regarding full year 2020, we don't know how long this impact will continue, but we want to enjoy an increase in revenue as well as operating income. And so for the full year, we would like to enjoy an increase in operating income.

Now in terms of advertisement, in Q4, the revenue increased by 9%. And regarding the basic trend, I believe that the momentum will continue after Q1 as well. But of course, it will depend on the demand of the advertisers and sponsors. And so there will be some fluctuation in the future. That's all from me.

YoshitakaNagao

I want to confirm 2 quick points, please. Mr. Kawabe, you mentioned that there is a limited negative impact, but Mr. Sakaue mentioned that you want to maintain the growth of 9% level. So which is closer to the reality? And in terms of advertising, maybe the paid search is strong or maybe display is weak or maybe PDL advertising is strong. If there is any difference amongst the segments, please tell me about that.

KentaroKawabe

So firstly, Mr. Sakaue will answer. And then the second point, I will answer that question.

RyosukeSakaue

Well, I apologize for being confusing. So net-net, what Mr. Kawabe said is true, meaning that we forecast a negative figure.

KentaroKawabe

Second point, as mentioned in my presentation, Yahoo! is being trusted by the users and many users are visiting our media sites. Because of COVID-19, people are accessing our news sites. So there is an increase of PB. And YDN is increasing accordingly. Having said that, regarding the pay search, advertising, safe travel and also personnel, our HR recruitment sites, we are seeing a decrease in the ad placement, and that is the difference in the situation, depending on the categories of the advertising products.

Operator

Now next question, Mr. Tsuruo from Citigroup Securities.

MitsunobuTsuruo

This is Tsuruo from Citigroup Securities. First of all, it is about cost reduction. So by the quarter, you have been scheduling JPY 10 billion of cost cut. So with this cost cut level, are you feeling that you're going to be maintaining the increase of revenue? And if necessarily, maybe is it going to be a more bigger, larger cost cut, expanding over JPY 10 billion? And if so, how much? That's the first question.

And the second question, it is about the profit and loss of PayPay and its outlook. How do you think of this? And you have been thinking about there are some fluctuation points, so where are you cautious about? Please tell me.

UnidentifiedCompanyRepresentative

Thank you very much. Mr. Kawabe will be answering for the first question. And for the second question, Mr. Sakaue will answer.

KentaroKawabe

So maybe this is a refrain. For first quarter, second quarter, the first half impacted by coronavirus, it is difficult for us to set out an outlook. But for the full year, full year is very long. And the condition of corona is unseen. Maybe we might not be able to see the full containment. But maybe the emergency declaration could be more relaxed. So that is the year that we're thinking. To the second half, we would like to promote our businesses and to bring it into an increase in sales and revenue through end of the fiscal year. And the key is that how to strive through the first half. So first of all, in the first quarter, we have said the JPY 10 billion to cut the cost for the first quarter. And if the situation becomes more grave, then we will have to think and act on much more cost cuttings. But on the contrary, if the outlook becomes better than we have assumed, then we will channel these funding into investment. So we will be very flexible on what we will do. So whichever condition that could be happening, we will be making our action needed without hesitation.

And so for the first question, if Mr. Sakaue needs to add. Please, Mr. Sakaue.

RyosukeSakaue

For the first point, I would like to add my comment. For the first quarter, against the budget, this is going to be a cost cut of JPY 10 billion. And whether or not we're going to be putting in further reduction of cost or not was a question. And honestly, I think we're doing the utmost, almost near to limit, for the reduction of costs. Therefore, right now at this point, we're not thinking about putting in more because it's going to be undermining the mid- to long-term revenue. Therefore, regarding this, we must discuss even more deeply with the company people, personnel. But then at this point, we are not thinking about putting in much more cost reduction.

And for the second question about PayPay and its condition, I think it is about the level of FY 2019 that we consider. As already mentioned, regarding PayPay, it's already 1.5 years since we started the service. And for the first 3 years, we were focused on capturing customers and users. And this is the term where we capture the users and users be making it a habit to come over and visit us. Therefore, we are thinking to make investment for the 3 first years. That is all from my side. Thank you very much.

Operator

Let's move on. SMBC Nikko Securities, Maeda-san, please.

EijiMaeda

I have 2 questions. First question and maybe it might be difficult for you to answer concretely, but I want to know about the business integration with LINE. You need to get the permit and approval from Fair Trade Commission. So if you can talk about that, because you do business overseas as well. If there is anything that you can mention regarding the business integration with LINE, please let us know.

Second question about ZOZO. You acquired ZOZO, but the revenue is not growing that much. And I know that you will be using a promotional expense. So there might be a risk of goodwill impairment. And I want to know what will be the event that will trigger registering the impairment loss. And I know that you have just consolidated ZOZO, so maybe the time is not right yet for you to talk about the impairment loss. But can you shed some light on the situation?

KentaroKawabe

So I would like to answer the first question. And second question, I will answer first, and then that will be followed by Mr. Sakaue. Our first question on the screening of integration by Fair Trade Commission. It is trending favorably. But as you know, the members of FTC are impacted by COVID-19 and working remotely. But if there is an impact, we would like to disclose the situation immediately.

Second question about ZOZO. The assumption is as follows: I understand that people had different views on ZOZO. So year-on-year comparison-wise, regarding the growth, we have ZOZO Arigato, which is a full-scale promotion that we have conducted last year. And so year-on-year comparison, we were able to grow. That's point number one.

And point number two, the winter was pretty warm. And we have been impacted by the seasonal factor. But when you look at the earnings results of different apparel companies, ZOZO does business on the net. And also, we do have the track record. So competitively speaking, we did quite well. But we invested in the acquisition of ZOZO, so we know that we have to grow ZOZO furthermore.

And in PayPay Mall, we have ZOZO store in PayPay Mall. And we believe that ZOZO in PayPay Mall is growing smoothly. PayPay Mall started a new service and especially in terms of e-commerce over the net, we need some time for growth. So the growth of PayPay Mall and also ZOZOTOWN store in the net, we believe that it is growing given our experience in the network. So maybe you might have a different take, but we think that we are trending well, and we will put more effort in FY 2020 as well. And the other day, Mr. Ozawa, the President, gave earnings report of ZOZO, and he was very robust. And given the current situation, as a platformer, there are so many things that ZOZO can do to support the brand. And we will work along with SoftBank so that we will be able to support different brands and work as the pivotal platformer.

Mr. Sakaue, please add your comment.

RyosukeSakaue

Regarding the risk of impairment loss of ZOZO, maybe you might know what I'm going to tell you right now. But we use IFRS for consolidated financials. And ZOZO's stock price will go up and down, but then that does not automatically lead to the impairment loss. So PayPay Mall, Yahoo! Shaping, ASKUL are the entities that we have to factor in, in considering whether we need to have the impairment loss for ZOZO or not. And so all those 4 segments will be evaluated on a timely basis. And based on the evaluation, if the goodwill that we paid at the time of acquisition of ZOZO will be reviewed to see whether we need to register impairment loss for the particular quarter or for the full year. So it's not that we look independently at ZOZO, but we had mid- to long-term PayPay Mall activities. And if their business, their means ZOZO's business goes up in PayPay Mall, we will not have to register any impairment loss. So as you heard in our presentation, we have different synergetic collaborations with ZOZO, and we need to enhance the mid- to long-term value of ZOZO so that we will be able to eliminate any risk of impairment loss. That's all for me.

Operator

Next, Mr. Sato from Jefferies Securities, please. Ms. Sato, excuse me.

HirokoSato

Can you hear me? This is Ms. Sato from Jefferies Securities.

KentaroKawabe

Yes, we can hear you.

HirokoSato

And I have 2 questions, too. First question, about the JPY 10 billion size of cost reduction. For instance, is it going to be a cost reduction for all the categories in the same size? Or else are you going to be focusing on 1 or 2 categories or topics to make the cost reduction? So how can we think of this? That's my first question.

And second question, it is about the advertisement. The Olympic is now coming later on the schedule. Therefore, the advertisement revenue that you were expecting for the Olympic, if it should have had to be happening, how much was it?

KentaroKawabe

For the first point, Mr. Sakaue will answer. And for the second question, this is about the advertisement of the Olympics gains. And if to answer first on this, Olympic and Paralympic games is very important for the media, meaning that it was very important to make a visual vision to the audiences. Therefore, the advertisement revenue impact on it is very limited. For the value itself, it is now -- I'm not going to be disclosing because it is going to be related to next fiscal year.

And for the first question, Mr. Sakaue, please.

RyosukeSakaue

So what Ms. Sato mentioned, we're going to be looking into all categories and try to find out the unnecessary costs and try to execute or not spend. So looking at the further revenue, we will be flexibly judging on. That is all from my side.

HirokoSato

So additional question. So which segment do you think you need most of the cost reduction, including the profit rate? What is going to be getting the good impact by the cost reduction?

KentaroKawabe

For that, we have to think about the revenue and then to decide. And so for the profitability rate, it's not something that will emerge very largely. So whether it be media or advertisement or commerce, we're going to be working on this in both area. Therefore, by doing that, our profitability is going to go up rather little.

HirokoSato

For the first half, you mean the profit rate compared to the previous quarter; it's going to be higher then, okay. And for the Olympic games, I would like to expand my question. So the Olympic impact, how is it going to be impacting your company overall? So what was the image of the impact that you were going to be having from the Olympic games advertisement, please?

KentaroKawabe

So maybe I might be referring to the same thing. But every time the Olympic games, we are buying slots and then we feature, and then various people have been utilizing that slot. And for those people who wanted to see the Olympic information came over to our site has additionally used other sites, too. So that was the Olympic feature and the trend for ourselves. And regarding that, this part is gone now. And it is going to be coming back next year is what we consider. So when we do not have that impact of having extra customers coming in, are there anything to compensate or not? And we do, I suppose. Maybe we could feature on some other things. And currently, starting this February, the information related to coronavirus, many users are coming over to visit us therefore. Well, it's a disease and infection. So it is not a happy thing. But in reality, as a feature for Olympic is overwhelmed by the increase of traffic by the COVID information seekers, that is the reality right now. Thank you very much.

HirokoSato

May I ask another question, please?

KentaroKawabe

Yes. Well, principally no, but yes. Please go ahead.

HirokoSato

So how to look at the advertisement? So let's say the coronavirus is contained to some extent, so do you think that you're coming back to the normal very early for the advertisement or else are you going to be hit and very much damaged by the advertisement? So what do you think? And how do you outlook on this? This is my last question.

KentaroKawabe

Honestly speaking, the infectious disease is causing pandemic worldwide. And many movements are stopped around the world, and advertisers are not putting in advertisement. This is a very first experience for us. So honestly speaking, we don't know. But then what we can assume is that according to business category, movements will be different. For instance, the national clients for the goods, if the goods start selling, I think people will come back to us. So in order for them to come back, we would like to make a topic and feature, so the users and advertisers will be starting to think that we should come back to the normal. So that is our mission, we suppose. Therefore, when the state of the emergency is lifted, we would like to put in some mechanism like that. And currently, we are featuring stay at home. And under the state of the emergency, in order to support stay home, I think many people will support what we are doing. And we are providing information because we have mission as operator operating in media with [Indiscernible] pharmaceutical and [Indiscernible], the national clients are following suit with us. So in such a format as a media company, we will work on whatever we can do, centering around the national clients to make the movement.

Operator

Next, JPMorgan Securities, Mori-san, please?

HarukaMori

I have 2 questions. First question, I have a question on advertising and collaboration with SoftBank. And you were able to lift up the revenue by JPY 4.4 billion. And I know that time not -- has not passed much. And do you think that after putting full fledged effort, you might be able to continue enjoying the same contribution? And what is your take on the contribution in the future?

And second question, in the last part of Mr. Kawabe, you mentioned about what you want to definitively pursue in FY 2020. And you mentioned about 3 points. And it seems that the expression is quite abstract. You want to expand your integrated marketing solution. And do you want to come up with any figure that you want to attain? Or you want to have more lineup portfolio? And so can you tell me, in more tangible manner, what you want to attain?

KentaroKawabe

And so Mr. Miyazawa will give you the answer first, and then I will add on to that by myself later.

GenMiyazawa

This is Miyazawa speaking. So JPY 4.4 billion and that we were able to attain through the collaboration with SoftBank. You want to know how it will trend in the future. We both believe that we can further extend the positive impact. Of course, we have to go through a trial and error at the very beginning. And in the second half of FY '19, we did our very best going through different trials. But moving forward, we will further strengthen the exchange personnel so that we will be able to expand our revenue. That's all.

KentaroKawabe

This is Kawabe speaking. I repeat what Mr. Miyazawa mentioned. We just started this endeavor. SoftBank has the resources and know-how of sales activities. And we can maximize on that. We will be able to provide marketing solution to more clients. So I'm sure that we will be able to grow furthermore.

Moving on to the second point, and I would like to share my personal view, and if necessary, Mr. Ozawa will be able to chime in. Regarding integrated marketing solution, we will be renewing the concept of marketing so we should have a right portfolio. And also the agencies and also the advertisers must understand this concept of integrated marketing solution. And that's what we want to do in FY 2020. We will reinforce the product that we can provide through the solution and let people know about it.

Regarding scenario-based finance, we need to attain particular figures for different scenarios. We have YAHUOKU! repair insurance that you can buy. This is just an example. And the Yahoo! car navigation, you can purchase the automobile insurance. And so we hope that we will be able to gain revenue through these new offerings.

And maybe Mr. Ozawa might want to add some comments to what I said right now.

TakaoOzawa

This is Ozawa speaking. And I believe that you want to know about the numerical figures that we might be able to share with you. But as mentioned by Mr. Kawabe right now, we are still in a way conceptual stage. Of course, we do have some internal numbers, but we cannot disclose those internal numbers to you yet. In the first half, we will conduct different experiments regarding both services that Mr. Kawabe mentioned. And based on that, we will be able to understand what will be the revenue we can get in the second half. That being the case, and for now, we will not be able to provide you with any tangible numbers.

KentaroKawabe

This is Kawabe. Regarding scenario-based finance, we have another one called PayPay Atobarai, a deferred lump sum payment. And this is a typical scenario-based finance product that we would like to offer. For now, we are providing only to some users and not all. That's all for me now for -- from me now.

Operator

So from Mitsubishi UFJ Morgan Stanley Securities, Mr. Araki, please.

MasatoAraki

This is Araki from Mitsubishi UFJ Morgan Stanley Securities. Can you hear me?

KentaroKawabe

Yes, we can hear you.

MasatoAraki

I have 2 questions. Regarding the credit card issue and the KPI. First, the credit card transaction value, all about the PayPay Mall, please. And when people are asked to stay at home, were there any differences starting March to May? And for the fourth quarter, transaction value was coincidently around the third quarter? And last year, whether it be fourth quarter or third quarter, the value grew. So do you think things are decelerated? That's one question.

And for the second one, this is about PayPay Mall and for shopping mall transaction value, there seems to be some changes. The third quarter was JPY 233 billion, but now JPY 255.2 billion. So what is now on top of the third quarter number? So in the past, it should be everything coming over from Yahoo! Shopping. But then at the end of March, the number of shops and out of the number, how much number are new that came to the PayPay Mall, new? And if possible, I would like to know how much people are spending per person.

KentaroKawabe

Thank you very much for your question. For the first question, Mr. Ozawa will answer. And for second question, I'm not quite sure how much we can talk about the numbers, but I would like to ask Mr. Sakaue to answer. For the first question about the credit card, Mr. Ozawa, please.

TakaoOzawa

This is Ozawa. The credit card issue, that there were cancellations of travels has been emerging and restaurant establishments are not working anymore. Therefore, the payments there are stopping. But on the other hand, PayPay, by linking with PayPay, there are some increases. And for e-commerce, people are utilizing e-commerce. So all in all, in total, the growth rate is high. So by saying the growth rate becoming lower, we are impacted. So the latest number is about what Mr. Kawabe mentioned in his presentation, the card business had some numbers for the growth rate. And for this term, the growth rate was impacted to some extent. So that is all from my side for card business.

KentaroKawabe

Okay. For the PayPay Mall, Mr. Sakaue is going to answer.

RyosukeSakaue

So I would Like to understand Mr. Araki's question. So let me confirm. This is about the transaction value of the shopping business. So first of all, JPY 324.7 million. This is including ZOZO main shop too -- main store. So third quarter, starting that, we have been consolidating ZOZO. Therefore, year-on-year, the increase seems to be high in this area. So I would like to know the intent of your question once again.

MasatoAraki

For the third quarter business result, it was JPY 232 billion. But then this time, it is now to JPY 292 billion. So JPY 6.3 billion is increasing. So what is increase? It is difficult for me to compare.

RyosukeSakaue

I am sorry; I do not have the data right now with me. It is difficult to answer correctly. Therefore, IR personnel will answer to you later on. I think the KPI itself is not changed. Therefore, we will answer to your question later on, if we may.

MasatoAraki

So I would like to know the condition of the new shops open in PayPay Mall, please.

KentaroKawabe

Once again, please?

MasatoAraki

So the number of new stores opening in PayPay Mall, I would like to know, and about the condition of the January to March, please. So all the shops are coming in from Yahoo! Japan? Or is it very new shops starting in PayPay Mall?

KentaroKawabe

Mr. Ozawa will answer.

TakaoOzawa

So this is Ozawa answering your question. Regarding PayPay Mall, so the existing shopping stores have been transferring itself to PayPay Mall. So the contractor contracting PayPay Mall was transferring too continuously. For February, March and the ZOZO part has been growing exponentially. And there are some large operators, too. Store orders, too. For several months, for the new shop opening, we need to see some several time our few terms to see it take off. Therefore, we need to observe much more. For the new opening of the stores, we don't have the correct data right now. Therefore, I would like to answer through IR department team. Is it okay, IR team?

UnidentifiedCompanyRepresentative

Yes, this answer will be answered by the IR team. Thank you very much.

Operator

From Okasan Securities, Okumura-san, please.

YusukeOkumura

I am Okumura of Okasan Securities. Can you hear me?

UnidentifiedCompanyRepresentative

Can you speak up a little bit more?

YusukeOkumura

I have 2 questions.

UnidentifiedCompanyRepresentative

Excuse me. Can you speak up more loudly or increase your volume?

YusukeOkumura

Okay. Can you hear me?

UnidentifiedCompanyRepresentative

Yes, I think we're okay.

YusukeOkumura

First question is on the take rate of shopping advertising. In 3 months of Q4, I understand that you are improving year-on-year. Yahoo! Shopping and PayPay Mall, you have 2. So can you separate the 2 and tell me the trend?

And going forward, if PayPay Mall composition increases, what will be the take rate in the future? So those are the 2 questions that I would like you to answer now.

And moving on to the major second one. You have JPY 4.4 billion increase due to the collaboration with SoftBank. Is this a reservation type or programmatic advertising? Which is the case? Can you tell me what was the contributor?

KentaroKawabe

And so the first question will be answered by Sakaue-san. And the second one will be answered by Miyazawa-san, who is in charge of media. Then Mr. Sakaue, please answer the first question.

RyosukeSakaue

So the breakdown between shopping and PayPay Mall regarding take rate, I cannot disclose it. But then the total is 5%. Going forward, say, if PayPay Mall ratio goes up, there will be leeway for the improvement of take rate.

KentaroKawabe

Then second question, Mr. Miyazawa, please.

GenMiyazawa

This is Miyazawa speaking. We collaborate with SoftBank and what is the product mix. We have the reservation type as well as programmatic ads, and both are growing. And the arm treasure data is proposed by SoftBank, and they link it with Yahoo!'s service. So you can maximize on the data so that marketing can be optimized. And so we do not only focus on one product, but there will be a different portfolio of products that can be proposed to different clients. That's all for me.

Operator

Next question, Mr. Oliver Matthew from CLSA Securities.

OliverMatthew

My first question is about the SoftBank advertising collaboration. Does this go through a separate ad agency? Or is this effectively direct to the client?

KentaroKawabe

So for your first question, Mr. Miyazawa will answer.

GenMiyazawa

So allow me to speak in Japanese. The existing client to SoftBank, we are going to be proposing digital content. So in another way, the clients will be designating an agency. And they could be designating the agency or else in another case, clients come directly to Yahoo! to place advertisement and SoftBank is going to be making the program. And the arm and the incubate carrier SoftBank has, the company arm is going to be working on the operation. And that could happen, too. So that was my answer to your first question.

OliverMatthew

Second question, could you tell us more about the joint product committee that you expect to set up with LINE? What is the role of this committee? And how can we think about it for your future media products?

UnidentifiedCompanyRepresentative

So you mean the product committee that we are disclosing?

OliverMatthew

That's right. I think you have appointed a Chief Product Officer. Could you talk more about the role of this committee and how it will work?

UnidentifiedCompanyRepresentative

Understood. This is going to be answered from Mr. Kawabe.

KentaroKawabe

So regarding this, after integration, we're going to be setting up the committee. So therefore, at this point, the product committee has not yet started up to create anything. So there are no discussions within the committee because it does not exist right now. And after the integration, what the committee will work on is there's going to be a strategical product between the 2 companies or entities. And how to operate and work on such strategical product is going to be talked within the committee centered around Chief Product Officer and to make decision. So this is about making the services and whether it is going to be merged or not. And product committee that existed and the product officer are also going to be taking part to discuss. So with LINE and Yahoo!, the services will count over 100. So we're not going to be discussing and judging everything, but we're going to be focusing on the very important product and make a policy decision there at the committee is what we consider at this point. And Chief Product Officer, at this point, Shin-san of LINE is now designated. Shin-san, he is not a producer creating LINE itself, most utilized format in Japan and various gains which are embarked on LINE, all these gains are an invention of Mr. Shin is what we hear. Therefore, he has a track record about creating great hits on new products. Therefore, Yahoo! services and LINE services centering around him, we're expecting very highly that our products are going to be a big hit.

Operator

KentaroKawabe

This is Kawabe speaking. I would like to complement on my comment. In the presentation, as well as Q&A, I gave you some tangible examples of finance-based or rather scenario-based finance. And I mentioned that Yahoo! car navigation insurance policy is provided, but then that is not correct. This is a plan underway, and we have not provided the service yet.

Operator

Let's move on to Q&A. From Nomura Securities, Nagao-san, please.

YoshitakaNagao

I want to confirm one point. In Q2, in FY 2020, PayPay will be used by ZOZO. So once that becomes a reality, PayPay Atobarai deferred payment can be used at ZOZO?

UnidentifiedCompanyRepresentative

Then Ozawa-san will be responding to that question.

TakaoOzawa

Regarding the usage of this service, we are ironing out the details right now. Users should be able to enjoy different payment schemes, including deferred payment Atobarai, and we are considering providing installment-based deferred payment as well. And if we finalize on our service, we will let you know. So the goal is the concept that I have mentioned to you right now, but whether that will be a tangible service as of Q2 or not, that's still a question. Thank you.

UnidentifiedCompanyRepresentative

I would like to add one more point to the question of Araki-san. Mr. Sakaue, our CFO, will be answering.

RyosukeSakaue

So Araki-san, you mentioned about shopping business, 2019 Q3 transaction values is JPY 232 billion, and that was the information you heard last time. And I guess you're looking at Q3's presentation material. And the number, JPY 232 billion is actually written, and ZOZO main store is excluded, as you can see in the footnote. If you add ZOZOTOWN main store, it will be JPY 295.2 billion. And so in order to give you apple-to-apple comparison, we excluded ZOZOTOWN main store so that you will be able to compare apple-to-apple. But the actual figure is written in the presentation material under the shopping business revenue and it includes ZOZOTOWN.

Operator

Next, Mr. Araki from Mitsubishi UFJ Morgan Stanley Securities.

MasatoAraki

Mr. Kawabe, from additional explanation. I do understand that JPY 232 billion, I understand. But I would like to know the intention of Q4. So I would like to know, towards the JPY 232 billion, what happened to Q4?

KentaroKawabe

Thank you, Mr. Araki, for your question. We might not be able to answer swiftly to your question. So therefore, IR member team is going to be answering to your question later on.

Operator

Next, CLSA, Mr. Oliver Matthew, please.

OliverMatthew

I have a question about coupon products. Could you please explain more how you plan to sell these products? I can understand that with the LINE at merchants and the Yahoo! Ad network, you will be able to offer very strong coupon products through PayPay perhaps. But how do you plan to sell them? How will you commercialize more coupon products?

UnidentifiedCompanyRepresentative

Thank you very much for your question. When you refer to coupon product, are you talking about coupon within the integrated marketing solution? I want to confirm that before I answer your question.

OliverMatthew

I don't know. It could be or something you will do after the integration with LINE?

UnidentifiedCompanyRepresentative

I understood. Talking about coupon, within integrating marketing solution, we have something akin to coupon and on PayPay and on top page of Yahoo!, we have a tab called coupon. So you will be able to have the engagement with the users through that. Coupon might have different potentials and with LINE and PayPay, what collaboration is possible? I believe that Ozawa-san, who is in charge of these businesses, will be able to respond to that. But we have got restrictions, and so we do not have any concrete discussions with LINE regarding coupon business. Mr. Ozawa, please.

TakaoOzawa

This is Ozawa speaking. Talking about coupon, I believe that it will be a very important product in the future. We have integrated marketing solutions, and we are going to realize this solution this fiscal year. And using a coupon, not only marketing but also in the sales promotion activities, we would like to generate revenue through coupons. Concretely speaking, we have PayPay, and PayPay grew in magnitude and people visit stores and they use coupons, and that is happening on a daily day -- day-to-day basis. And the payments are linked to coupons. And coupon does not exist alone. And so when you go to a store, you can use coupon, and you do not feel embarrassed using coupon, and the stores like shoppers using coupons with PayPay.

On PayPay, we will notify the existence of coupons. And once we complete the business integration with LINE at LINE ad for different members of LINE, we will be able to promote coupon. And of course, we are doing coupon business at Yahoo! Shopping per user in Yahoo! Shopping as well as brick-and-mortar stores, we buy -- we can provide hybrid coupons. So whether it be the Internet or physical stores, with the existence of PayPay, we will be able to have the existence in the off-line domain as well, and the usability of coupon will be further enhanced. That's all from me.

OliverMatthew

Could you comment how you sell the product? Is it sold on a per action basis or per impression? How do you sell coupon products?

UnidentifiedCompanyRepresentative

So Mr. Ozawa will be responding to that.

TakaoOzawa

We are testing different potentials. And so we will actually bill for the sales. And we will have a different billing for the expansion of the coupons. So these are the 2 routes that we are thinking. And it will be best if both routes can be leveraged for our revenue. And so if we have to choose between the 2, we should be billing for the sales that are actually generated. And in the first half of this fiscal year, we will be conducting different tests. And we are going to see what kind of preference the users have. As a matter of fact, at Yahoo! Shopping, we have the coupons that will be billed by the transaction value. So over the net, e-commerce-wise, we are already leveraging on coupon mechanism. That's all from me.

Operator

And now will be the last question. Mr. Mori from JPMorgan Securities -- excuse me, Ms. Mori.

HarukaMori

So one thing about the business performance, I would like to confirm, for the revenue for the quarter 4, for the operating income, compared to the year before, it seems to be inflated. So I would like to know what has happened.

UnidentifiedCompanyRepresentative

So Mr. Sakaue, our CFO, is going to answer to that question.

RyosukeSakaue

So comparing to the Q4 and Q4, I would like to answer. So for quarter 4, with the server and part of our fixed asset is retired, and that is about JPY 10 billion. And the other thing is about the securities. Part of our securities held was around JPY 3 billion and that was -- sorry, impaired, registered as impairment. And this is now under adjustment. So if we go into a more granular level, this is specific for this quarter. So this is integration with LINE and SoftBank KK consolidation. So the VFA fee happened and SoftBank KK consolidation. Structure-wise, this was increase of stocks for us. Therefore, the external tax is on top more than usual for accounting base and accounting principle.

UnidentifiedCompanyRepresentative

Maybe we can entertain one question. One question, last one.

Operator

So last question is Tsuruo-san of Citigroup.

MitsunobuTsuruo

I have a very short question. The first question is about the finance business. Because of COVID-19 and the income of individual is going down and they might be laid off. And so regarding the credit risk, what kind of management do you plan to exercise?

And second question is about the dividend payout. And looking at the net leverage ratio, it is 2.1. And unless EBITDA goes down, I believe that there is no problem with your balance sheet. So regarding dividend, you will be paying out the dividend as usual?

UnidentifiedCompanyRepresentative

Thank you. The first question, I will answer. And the second question will be answered by Mr. Sakaue, our CFO.

First question, as you have rightfully mentioned, due to COVID-19, the individual income is changing, and there will be other changes as well. And we would like to provide finance services that will merit the people at large. Having said that, we need to control the credit risk. We have YJ Card and we have JNB. And they know the well-established credit worthiness methodology. And on top of that, we will use multi big data. And so we will try to mix and match and provide hybrid credit management. Regarding the latter that I have mentioned, we can use multi big data already so that we can provide a recent credit screening for each individual. And in the past, the parameters were not able to grasp the most recent reality, but because of the multi big data, we believe that we can provide the right credit screening and, at the same time, minimize the risk as much as possible. And multi big data that we have proposed by leveraging on AI, I believe that we will be able to demonstrate the worthiness of this endeavor.

Moving on to the second question, I would like Mr. Sakaue, CFO, to answer.

RyosukeSakaue

Regarding the outlook of the dividend, it is true that we are impacted by COVID-19, but we are going on with the business integration of LINE. And jumping restriction is lifted; we would like to come out with the midterm plan. And we will think about the mid- to long-term plan and provide you with the details. And during that time, I would like to share with you our view about the dividend. As for now, we have not decided on the future dividend plan.

End of Q&A

Operator

Thank you very much. Now we -- our time is up. Therefore, we would like to finish this presentation. Mr. Kawabe, anything from your side?

Kentaro Kawabe

Thank you very much, ladies and gentlemen, for staying with us for such a long time. For fiscal year 2019, we have been making various challenges and entering into FY 2019 and then 2020 started and then coronavirus hit the world. So FY 2019 was a topical one. So we had various difficulties, but utilizing our organizational capability, we were able to weather through. This is all because of your understanding and your cooperation. We thank you from our heart.

And for FY 2020, this is a year that we would like to work on what we have planted as seeds in FY 2019. Therefore, we would like to go on and do our job. Upon that, the coronavirus situation is unseeable, but we consider this is a temporary impact on us. And by the COVID-19, without doubt, the world is going to be heading for digitalization. So online event is going to take much, much existence. And coronavirus is a very big disaster to the human being. But -- therefore, we cannot say this is an opportunity, a great opportunity for us in loud by voice. But within the world that is changing, what we must do and what we should do is going to be increasing compared to the past and rather than working with one along with the integrated line, making digitalization and create things that could be viable online, and that is going to be meaningful for Japan and the world, too. So for FY 2020, we are going to be looking at a big, big picture to follow the world. Therefore, I would like your continued support and understanding. Thank you very much for listening and staying with us for such a long time.

Operator

This concludes the telephone conference of Z Holdings. Thank you very much for staying with us until the very end.