Notice of the 20Th Ordinary General Meeting of Shareholders

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

LINE Notice of the 20th Ordinary General Meeting of Shareholders

Date: 10:00 a.m., Thursday, March 26, 2020

Location: “Prince Hall,” 5th floor, Annex Tower, Shinagawa Prince Hotel 4-10-30 Takanawa, Minato-ku, Tokyo

No souvenirs will be provided to shareholders attending the General Meeting of Shareholders, for which we would appreciate your understanding.

LINE Corporation Securities code: 3938

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CLOSING THE DISTANCE Our mission is to bring people, information and services closer together.

To our shareholders and investors

I would first like to take this opportunity to thank our shareholders for their continued support and interest in LINE. We took a further leap forward in 2019, in which the number of domestic users of our LINE mobile messaging application exceeded 83 million (an increase of 4 million from the previous year) and the number of users in overseas countries also exceeded 81 million. LINE Pay, a mobile P2P transfer and payment service, has also obtained new users and achieved a steady increase in settlement volume, driven by cashless payments, tax increases and other factors. Furthermore, we have significantly expanded our service lineup, examples of which include the provision of new financial services such as our proprietary scoring service LINE Score and a new mobile investment service LINE Securities, the establishment of LINE Healthcare Corporation for online healthcare business, and the provision of a takeout service LINE Pockeo. In addition, as announced on December 23, 2019, we entered into a definitive agreement on business integration with Z Holdings Corporation based upon a spirit of equality. Having a large domestic user base and substantial assets in Japan, the two companies will consolidate their operating resources through the business integration, provide more convenient user experience to Japanese users by strengthening their respective business areas, and making business investments for growth in other new market sectors, and bring progress to Japanese society and industry. By deploying this innovative model throughout Asia and the world, the integrated company aims to become the AI tech company that leads the world from Japan and Asia. I hope we can receive your continued support and encouragement as we work to deliver the business strategies of the LINE Group and the new integrated company.

Takeshi Idezawa, Representative Director and President March 2020 - 2 -

Securities code: 3938 March 6, 2020 To our shareholders Takeshi Idezawa, Representative Director and President LINE Corporation 4-1-6 Shinjuku, Shinjuku-ku, Tokyo

Notice of the 20th Ordinary General Meeting of Shareholders

You are cordially invited to attend the 20th Ordinary General Meeting of Shareholders of LINE Corporation (the Company), which will be held as described below: If you are unable to attend the meeting, you can exercise your voting rights either of the following methods. Please review the “Reference Documents for the Ordinary General Meeting of Shareholders” described later and exercise your voting rights by 6:30 p.m. on Wednesday, March 25, 2020. Exercising voting rights by mail Please indicate your vote of approval or disapproval using the enclosed voting card, and return the card to us so that it arrives by the above deadline. Exercising voting rights via the internet, etc. Please read “Guide to voting via the internet” on page 5 and enter your vote of approval or disapproval on each of the proposals by the above deadline.

1. Date: 10:00 a.m., Thursday, March 26, 2020 2. Location: “Prince Hall,” 5th floor, Annex Tower, Shinagawa Prince Hotel 4-10-30 Takanawa, Minato-ku, Tokyo 3. Agenda: Items To Be Reported: 1. Report on the Business Report and Consolidated Financial Statements for the 20th business term (from January 1, 2019 to December 31, 2019), and the results of the audit on the Consolidated Financial Statements by the Accounting Auditor and the Board of Corporate Auditors 2. Report on the Non-consolidated Financial Statements for the 20th business term (from January 1, 2019 to December 31, 2019) Items To Be Resolved: Proposal No. 1 Determination of Amounts and Details of Stock Options (Warrants) to Be Paid as Compensation, etc. to Directors (Excluding Outside Directors) Proposal No. 2 Determination of Amounts and Details of Stock Options (Warrants) to Be Paid as Compensation, etc. to Outside Directors Notes:  You are kindly requested to present the enclosed voting card to the receptionist when you attend the meeting. To conserve natural resources, please bring this Notice with you.  Please note that persons other than shareholders who can exercise voting rights, such as proxy agents who are not shareholders or those accompanying shareholders, will not be permitted to enter the meeting venue.  In the event of situations requiring amendments to items in the Reference Documents for the Ordinary General Meeting of Shareholders, the Business Report, Consolidated Financial Statements or Non-consolidated Financial Statements, amended items will be posted on the Company’s website (https://linecorp.com/en/ir/stock).

Internet-based Disclosure The following items are posted on the Company’s website in accordance with laws and regulations and Article 16 of the Articles of Incorporation of the Company, they are not provided in this Notice. Accordingly, the Business Report, the Consolidated Financial Statements and the Non-consolidated Financial Statements attached to this Notice are only part of the Consolidated Financial Statements and the Non-consolidated Financial Statements audited by the Accounting Auditor and the Corporate Auditors for the preparation of Accounting Audit Reports and Audit Report. 1) “Systems to Ensure Appropriate Business Operations and Operational Status of the System” in the Business Report 2) “Consolidated Statements of Changes in Equity” and “Notes to Consolidated Financial Statements”

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3) “Non-consolidated Statements of Changes in Equity” and “Notes to Non-consolidated Financial Statements” URL: https://linecorp.com/en/ir/stock

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Instructions for Exercising Voting Rights

The right to vote at the Ordinary General Meeting of Shareholders is an important right held by shareholders. We ask that you make sure to exercise your voting rights. There are three ways to exercise your voting rights as described below:

When attending the Ordinary General Meeting of Shareholders You are kindly requested to present the enclosed voting card to the receptionist when you attend the meeting. Please note that persons, such as proxies and accompanying persons, other than the shareholders who are eligible to vote will not be allowed entry to the meeting even if they bring the voting card with them. Furthermore, if you attend the Ordinary General Meeting of Shareholders, you are kindly requested to bring this Notice to conserve resources. Date: 10:00 a.m., Thursday, March 26, 2020 Location: “Prince Hall,” 5th floor, Annex Tower, Shinagawa Prince Hotel

When mailing your voting card Please indicate your approval or disapproval of each resolution on the enclosed voting card and return it by postal mail. Please refer to the instructions below regarding how to fill out your voting card. Deadline: To be received by 6:30 p.m., Wednesday, March 25, 2020

How to fill out your voting card

Please indicate your approval or disapproval of each resolution here.

Proposals No. 1, No. 2  If you approve, put a circle in the APPROVAL box.  If you disapprove, put a circle in the DISAPPROVAL box. Handling of votes If you do not indicate your approval or disapproval of a proposal in your voting card, we will assume that you have voted in favor of the proposal.

Exercise of voting rights via the internet Please access the voting website designated by the Company (https://soukai.mizuho-tb.co.jp/) with the “voting code” and “password” provided on the enclosed voting card, follow the instructions on the screen and enter your approval or disapproval for each proposal. Deadline: 6:30 p.m., Wednesday, March 25, 2020

Guide to voting via the internet When exercising voting rights via the internet Please have the “voting code” and “password” provided on the voting card ready as they will be required.

In regard to exercising voting rights In the case where the voting card is submitted by mail and voting rights are exercised via the internet, votes exercised via the internet will be considered effective. In addition, if you have exercised your voting rights more than once via the internet, only the final voting shall be deemed as effective.

Voting website: https://soukai.mizuho-tb.co.jp/

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Stock Transfer Agency Department, Inquiries regarding operation of the Mizuho Trust & Banking Co., Ltd. website for exercising voting rights Toll free: 0120-768-524 (Hours: 9:00 a.m. – 9:00 p.m. on weekdays)

Electronic Voting Platform Trust banks and other nominee shareholders (including standing proxies) who have applied in advance to use the electronic voting platform operated by ICJ, Inc. may use this platform in exercising voting rights.

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Reference Documents for the Ordinary General Meeting of Shareholders

Proposal No. 1 Determination of Amounts and Details of Stock Options (Warrants) to Be Paid as Compensation, etc. to Directors (Excluding Outside Directors) 1. Reason for proposal A resolution was passed at the 15th Ordinary General Meeting of Shareholders held on March 31, 2015, to limit the annual total compensation of the Company’s Directors (including outside Directors) to 1 billion yen. The Company has introduced, since its 20th term (from January 1, 2019, to December 31, 2019), a share-based compensation system for the Directors of the Company for the purpose of providing the Directors with an incentive to contribute to continuing enhancement of corporate value and shareholder value over the medium- to long-term. Based on the share-based compensation system, the Company requests that shareholders approve the allotment of warrants in the 21st term (from January 1, 2020 to December 31, 2020) as described below that is separate from the above-mentioned compensation limit to Directors of the Company (excluding outside Directors and part-time Directors; the same exclusion applies throughout this proposal) in the form of stock options and to set a maximum limit on the amount of compensation, etc. relating to the warrants at 8.0 billion yen.

In lieu of the Directors paying for the warrants in the form of stock options (“stock options (warrants)”) allotted to them at an amount determined on the basis of fair value, such payment is planned to be made by means of offsetting the Directors’ claim to compensation that is based on compensation, etc. relating to the stock options (warrants) proposed in this proposal.

In the introduction of the share-based compensation system, the Company has established the Compensation Committee, the majority of whose members consists of outside Directors, in order to ensure the adequacy of the Directors’ compensation system and the levels of compensation, as well as the independence, objectivity and transparency of decision-making process. This proposal is based on the suggestions put forth by the Committee.

The number of Directors of the Company subject to this proposal will be four, excluding outside Directors and part-time Directors.

2. Specific details of stock options (warrants) to be paid as compensation, etc. to Directors of the Company (1) Total number of warrants and class and number of shares subject thereto (a) Total number of warrants A total of 30,240 units shall be the limit on the number of warrants of the Company to be allocated during the 21st term.

(b) Class and number of shares to be issued upon exercise of warrants The class of shares to be issued upon exercise of warrants shall be shares of common stock of the Company and the number of shares to be issued upon exercise of a single warrant unit (hereinafter referred to as “Number of Allotted Shares”) shall be 100 shares. However, if it is appropriate to adjust the Number of Allotted Shares because of a share split (including gratuitous allotment of the common shares of the Company, which is deemed to be part of the description of a share split throughout this document) or share consolidation, etc. of the common shares of the Company after the date of the resolution of this proposal, the Company shall adjust the Number of Allotted Shares as necessary to a reasonable extent.

(2) Amount of payments for warrants The amount of payment for one warrant unit (issue price) shall be the amount determined by the Board of Directors on the basis of fair value of the warrants, which is computed by a fair value calculation method including the Binomial model, upon the allotment of the warrants.

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The Exercise Price shall be obtained by multiplying 1.05 by the average closing price in ordinary trading of the Company’s common shares on the Tokyo Stock Exchange for each day (excluding any day on which no trade is executed) of the month preceding the month in which the day that the warrants were allotted (hereinafter “Allotment Date”), and fraction less than 1 yen arising from such calculation will be rounded up; provided, however, that when the amount of the Exercise Price calculated this way is less than the closing price (or closing price of the immediately preceding trading day when there is no closing price) of the Company’s common shares on the Allotment Date, the Exercise Price shall be the closing price on the Allotment Date of the warrants. If it is appropriate to adjust the Exercise Price because of a merger, an issuance of shares for subscription, a share split or share consolidation, etc., the Company shall adjust the Exercise Price as necessary to a reasonable extent.

(4) Exercise period for warrants Warrant holders may exercise the warrants during the periods listed in the following items (including the first day and the last day of each period; the same applies to this paragraph and paragraph 5 below) up to the number of units in the relevant item (including the units for which the warrants have already been exercised). In such case, any fraction of exercisable warrants arising from the calculation pursuant to the relevant item shall be rounded down, and only the warrants without such fraction may be exercised. i. The exercise period for warrants shall be from the day exactly three years after the Allotment Date until the day exactly ten years after the Allotment Date. 20% of the total number of allotted warrants ii. The exercise period for warrants shall be from the day exactly four years after the Allotment Date until the day exactly ten years after the Allotment Date. 50% of the total number of allotted warrants iii. The exercise period for warrants shall be from the day exactly five years after the Allotment Date until the day exactly ten years after the Allotment Date. 100% of the total number of allotted warrants

(5) Conditions for exercise of warrants (a) Warrant holders must be in a position of Director of the Company or a subsidiary or associate of the Company at the time that the warrants are exercised; provided, however, that this does not apply in cases when a warrant holder has retired from the position of Director of the Company or a subsidiary or associate of the Company due to the expiry of his/her term of office, or when a justifiable reason is acknowledged at a meeting of the Board of Directors. (b) Warrant holders may exercise the warrants up to the number of units listed in the following items only if the stock price of the common shares of the Company satisfies the conditions in the relevant item. In such case, any fraction of exercisable warrants arising from the calculation pursuant to the relevant item shall be rounded down, and only the warrants without such fraction may be exercised. If it is appropriate to adjust the Standard Stock Price (as defined in item 1) because of a merger, an issuance of shares for subscription, a share split or share consolidation, etc., the Company shall adjust the Standard Stock Price as necessary to a reasonable extent. Warrant holders may exercise the warrants for the period set forth in paragraph 4 up to the maximum number of units for the exercise if the stock price of the common shares of the Company satisfies the conditions listed in the following items. i. If, on any day from the day exactly three years after the Allotment Date until the day exactly six years after the Allotment Date, the average closing price in ordinary trading of the Company’s common shares on the Tokyo Stock Exchange during the ten-business-day period immediately preceding that day (including the day itself, but excluding the day on which no ordinary trading of the Company’s common shares is executed; the same applies to the items in this paragraph) exceeds 7,518 yen (hereinafter “Standard Stock Price”): 20% of the total number of allotted warrants ii. If, on any day from the day exactly four years after the Allotment Date until the day exactly seven years after the Allotment Date, the average closing price in ordinary trading of the Company’s common shares on the Tokyo Stock Exchange during the ten-business-day period immediately preceding that day (including the day itself) exceeds the Standard Stock Price:

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30% of the total number of allotted warrants iii. If, on any day from the day exactly five years after the Allotment Date until the day exactly eight years after the Allotment Date, the average closing price in ordinary trading of the Company’s common shares on the Tokyo Stock Exchange during the ten-business-day period immediately preceding that day (including the day itself) exceeds the Standard Stock Price: 50% of the total number of allotted warrants (c) Other conditions for exercise of warrants shall be determined at the meeting of the Company’s Board of Directors determining the subscription requirements of the warrants.

(6) Restriction on acquisition of warrants by transfer Acquisition of warrants by transfer shall be subject to approval by resolution of the Company’s Board of Directors.

(7) Other matters concerning warrants Other matters concerning warrants shall be determined at the meeting of the Company’s Board of Directors determining the subscription requirements of the warrants.

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Proposal No. 2 Determination of Amounts and Details of Stock Options (Warrants) to Be Paid as Compensation, etc. to Outside Directors 1. Reason for proposal As stated in Proposal No. 1 “1. Reason for proposal,” a resolution was passed at the 15th Ordinary General Meeting of Shareholders held on March 31, 2015, to limit the annual total compensation of the Company’s Directors (including outside Directors) to 1 billion yen. The Company has introduced, since its 20th term (from January 1, 2019, to December 31, 2019), a share-based compensation system for the Directors of the Company for the purpose of providing the Directors with an incentive to contribute to continuing enhancement of corporate value and shareholder value over the medium- to long-term. Based on the share-based compensation system, the Company requests that shareholders approve the allotment of warrants in the 21st term (from January 1, 2020 to December 31, 2020) as described below that is separate from the above-mentioned compensation limit to outside Directors of the Company in the form of stock options and to set a maximum limit on the amount of compensation, etc. relating to the warrants at 63 million yen.

The number of outside Directors of the Company subject to this proposal will be three.

2. Specific details of stock options (warrants) to be paid as compensation, etc. to outside Directors of the Company (1) Total number of warrants and class and number of shares subject thereto (a) Total number of warrants A total of 240 units shall be the limit on the number of warrants of the Company to be allocated during the 21st term.

(3) Value of assets to be contributed upon exercise of warrants The value of assets to be contributed when warrants are exercised shall be the Number of Allotted Shares multiplied by the amount paid per share that can be delivered by exercise of warrants (hereinafter “Exercise Price”). The Exercise Price shall be obtained by multiplying 1.05 by the average closing price in ordinary trading of the Company’s common shares on the Tokyo Stock Exchange for each day (excluding any - 10 -

day on which no trade is executed) of the month preceding the month in which the day that the warrants were allotted (hereinafter “Allotment Date”), and fraction less than 1 yen arising from such calculation will be rounded up; provided, however, that when the amount of the Exercise Price calculated this way is less than the closing price (or closing price of the immediately preceding trading day when there is no closing price) of the Company’s common shares on the Allotment Date, the Exercise Price shall be the closing price on the Allotment Date of the warrants. If it is appropriate to adjust the Exercise Price because of a merger, an issuance of shares for subscription, a share split or share consolidation, etc., the Company shall adjust the Exercise Price as necessary to a reasonable extent.

(4) Exercise period for warrants Warrant holders may exercise the warrants during the periods listed in the following items (including the first day and the last day of each period) up to the number of units in the relevant item (including the units for which the warrants have already been exercised). In such case, any fraction of exercisable warrants arising from the calculation pursuant to the relevant item shall be rounded down, and only the warrants without such fraction may be exercised. i. The exercise period for warrants shall be from the day exactly three years after the Allotment Date until the day exactly ten years after the Allotment Date. 20% of the total number of allotted warrants ii. The exercise period for warrants shall be from the day exactly four years after the Allotment Date until the day exactly ten years after the Allotment Date. 50% of the total number of allotted warrants iii. The exercise period for warrants shall be from the day exactly five years after the Allotment Date until the day exactly ten years after the Allotment Date. 100% of the total number of allotted warrants

(5) Conditions for exercise of warrants Warrant holders must be in a position of Director of the Company or a subsidiary or associate of the Company at the time that the warrants are exercised; provided, however, that this does not apply in cases when a warrant holder has retired from the position of Director of the Company or a subsidiary or associate of the Company due to the expiry of his/her term of office, or when a justifiable reason is acknowledged at a meeting of the Board of Directors. Other conditions for exercise of warrants shall be determined at the meeting of the Company’s Board of Directors determining the subscription requirements of the warrants.

(6) Restriction on acquisition of warrants by transfer Acquisition of warrants by transfer shall be subject to approval by resolution of the Company’s Board of Directors.

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Reference: Compensation Policy

1. LINE’s Mission The mission of LINE is “CLOSING THE DISTANCE.” By bringing people, information and services closer together, we strive to realize a world in which LINE acts as a gateway to enable users to complete everything in their lives.

The standard for our value to achieve this mission is described in the word “WOW.” WOW means an unprecedented sensation and an experience that is so amazing that you just have to share it with friends. WOW exists in every top service that leads the market and breaks the global paradigm. The meaning of our existence is to pursue WOWs at all times, to keep taking on challenges to become No. 1 through which we enrich the world, and to continue providing values widely to stakeholders, including users, clients, suppliers, employees and shareholders through the creation of such social values.

2. LINE’s Strategy Conceived in June 2011, the communication application LINE is an embodiment of WOW and a service that changes the paradigm of communication and achieves CLOSING THE DISTANCE. Since launching LINE, we have continued to introduce various services through perpetual pursuit of WOWs and taking on challenges to become No. 1 as we build upon the development of LINE as a platform. Without stopping its pace, LINE will push to further pursue WOWs and to achieve CLOSING THE DISTANCE.

As technological innovation continues to accelerate unprecedentedly, the needs and values of users are becoming diversified. We consider these changes in the world as a chance to create new values and a great opportunity for LINE as we keep taking on challenges. Amid intense competition against global internet entities possessing high reputations, capital and technological capabilities (Facebook, Amazon, Netflix, Google and Apple to name a few) and with startups aggressively venturing to create new values, LINE focuses its efforts on futuristic areas such as Fintech, AI and Blockchain.

The most important element in pursuing WOWs at all times and achieving and continuously CLOSING THE DISTANCE is the “LINER,” the people working at LINE. Rather than being an incoherent group of people, we, a group of top-class talents who meet global standards, are to share the same vision, hold powerful motivation and determination, and continue taking on challenges without fear of failure. This is, has always been, and will continue to be the source of LINE’s competitive edge.

For LINE to maintain and further enhance our competitiveness and continuously, on a mid to long-term basis, maximize our corporate and shareholders’ value, we must maximize the value of our employees. In an environment where global talent acquisition is becoming more intense, we cannot achieve this with the traditional Japanese corporate compensation standards.

The compensation must be sufficiently attractive for top-class talents meeting global standards. It must serve as a powerful incentive for those talents to continue pursuing WOWs and taking on challenges to become No. 1 at all times. The opportunity must not be provided to a selected few, but should be offered equally to all LINERs and distributed clearly based on performance. Moreover, the compensation scheme must be designed to align with the interests of all stakeholders with a strong link to the continuous maximization of corporate and shareholders’ value over the mid to long-term.

Based on such understanding, the Company has introduced a new share-based compensation plan (“SBC Plan”). This SBC Plan will form the basis for LINE to continue creating social values over the mid to long-term and provide values widely to all stakeholders.

3. Compensation Guidelines The three fiscal years starting from the fiscal year ending December 2019 have been marked as LINE’s “Second Founding Period” during which we aim to make the next leap, leveraging the steady growth of LINE amidst technological innovations such as Fintech, AI and Blockchain. In such a critically important period, we developed the following guidelines for compensation that will enable us to recruit top-class

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(1) Incentives that contribute to increasing corporate and shareholders’ value continuously over the mid to long-term  such incentives must serve as a motivator to achieve the KGIs we have set: rather than merely pursuing short-term earnings, our KGIs focus on challenging ourselves to pursue our essential value (WOW), and continuously maximizing both corporate and shareholder’s value over the mid to long-term; and  rather than a select few, all officers and employees should have an equal opportunity to receive such incentives, which will clearly be given out based on performance.

(2) Sharing common interest with shareholders  the compensation scheme should be designed to align with the interests of shareholders and the interests of officers and employees, with an aim to increase shareholders’ value continuously over the mid to long-term;  the compensation scheme should contribute to providing values widely to stakeholders, including the users, clients, business partners, employees and shareholders, through the creation of social values in pursuit of WOWs, challenges to become No. 1 and efforts to achieve CLOSING THE DISTANCE, while sharing common interest with shareholders; and  the compensation should reflect multilateral evaluations from non-financial perspectives, such as compliance and information security, in addition to financial indices to deter extreme risk-taking behavior that pursues a mere short-term rise in share prices.

(3) Compensation governance  the Company will establish a Compensation Committee that possesses a similar level of independence equivalent to those of European and U.S. companies, to introduce a bold share- based compensation plan beyond the traditional standards adopted by Japanese corporations. The Compensation Committee shall be comprised of a majority of outside Directors and chaired by an outside Director to ensure the adequacy of the SBC Plan and compensation standards for the Company Directors, as well as the independence, objectivity and transparency of its decision process.  the Compensation Committee shall deliberate on matters such as compensation guidelines, total compensation amount, compensation composition, evaluation standards and evaluations conducted in accordance with such standards, individual compensation amount for the Company Directors, and provide advice and recommendations to the Board of Directors;  the Compensation Committee shall be scheduled to meet at least four times a year to conduct multiple discussions, from a composite perspective, on compensation rationality to ensure accountability to shareholders, investors and other stakeholders, such as the effectiveness of the compensation in relation to objectives such as LINE’s strategies, acquisition of talents and boasting of motivation, and comparison with benchmark corporations in determining the total amount of compensation of the Company Directors, taking into consideration the advice from compensation consultants and other specialists in various fields, who will be independently appointed by the Compensation Committee;  the Company will proactively disclose information and engage with stakeholders, including shareholders and investors. During deliberations, the Compensation Committee shall reflect stakeholders feedback that contributes to increasing corporate and shareholders’ value continuously over the mid to long-term; and  the Compensation Committee shall have the authority to provide advice and recommendations to the Board of Directors for evaluating the compensation of the Company Directors. To do so, the Compensation Committee shall evaluate qualitative factors such as ESGs (including support for natural disaster recovery and programming education,) in addition to the improvement of corporate and shareholder’s value, and also review and discuss the individual compensation of the Company Directors. Furthermore, the Board of Directors shall, to the maximum extent possible, respect such advice and recommendations from the Compensation Committee.

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4. Overview of Compensation Scheme The compensation of the inside Directors shall be comprised of the following three components: basic compensation, bonus and share-based compensation, whereas the outside Directors’ compensation shall consist of basic and share-based compensations.

Basic compensation A certain portion of monetary compensation shall be paid as basic compensation on a monthly basis. The total amount of monetary compensation for each Director shall be determined depending on their role and responsibility, as well as based on a concept that values team cohesion among a management team led by the CEO.

Bonus The remainder of the monetary compensation shall be paid at a later date as a non-performance-based bonus. The objective of this deferred compensation is to enable the Company to cease payment of monetary compensation to any inside Director who engages in material misconduct that causes damage to LINE during their term. However, the Company may only make such a decision based on deliberations conducted at the Compensation Committee and subject to the resolution of the Board of Directors.

Share-based compensation The Company has introduced a SBC Plan that will form the basis for LINE to continue creating social values over the mid to long-term and providing values widely to all stakeholders. The overview is explained below. The SBC Plan has been approved by the Board of Directors, after consultation with the Compensation Committee and receiving their advice and recommendations. Through the introduction of the SBC Plan, we anticipate that the Company Directors’ compensation will see a major increase in the proportion of share-based compensation as opposed to monetary compensation.

1) For the three fiscal years starting from the fiscal year ending December 2019, according to the contribution from officers and employees of LINE, the Company will issue and grant to its officers and employees, each fiscal year, stock options or other share-based compensation equivalent to approximately 3.6% of the total number of shares issued by the Company. Such compensation may be exercised after three years from the date of the General Meeting of Shareholders or Board of Directors resolution for the issuance of shares required for stock options or other stock compensations; provided, however, that the beneficiaries maintain their status as an officer or employee of LINE. 2) The exercise price of stock options shall be the Company’s share price at the time of issuance, plus a premium of approximately 5%. 3) For the three fiscal years starting from the fiscal year ending December 2019, the Company will issue and grant to the inside Directors, each fiscal year, a stock option of approximately 1.26% of the approximately 3.6% of the total number of shares issued by the Company as set forth above in item 1). The stock options to be granted to the inside Directors shall have a share price condition as a condition to exercise such options, which shall be designed to minimize the loss to shareholders value due to dilution of equity value unless shareholders values are increased. 4) In consideration of the Company Director Jungho Shin’s achievements in the conception and growth of the communication application LINE, and of the crucially important role he plays as Chief WOW Officer (CWO) to provide innovative services and promote innovation at LINE, the Company will issue and grant to the Company Director Jungho Shin for the three fiscal years starting from the fiscal year ending December 2019, each fiscal year, a stock option of approximately 0.9% of the approximately 3.6% of the total number of shares issued by the Company as set forth above in item 1). 5) This SBC Plan shall be designed so that if any Company Director engages in material misconduct that causes damage to LINE during their term, the Company may, based on deliberations conducted at the Compensation Committee and subject to resolution by the Board of Directors, limit the exercise of stock options or request the relevant Company Director to return the compensation obtained as a result of exercising such an option. 6) Outside Directors are expected to contribute to the continuous improvement of shareholders’ value over the mid to long-term by supporting the promotion of shared interests with shareholders and supporting speedy and decisive decision-making on matters of business execution, as well as to

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deter extreme risk-taking in business execution from a completely independent standpoint. On such a basis, the Company will issue and grant to its outside Directors a non-performance-based stock option or other share-based compensation without a share price condition as an exercise condition within an appropriate scope.

* The execution of the SBC Plan is subject to approval at a General Meeting of Shareholders of the Company on necessary matters.

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Attached materials Business Report From January 1, 2019 to December 31, 2019

1. Current Condition of Corporate Group (1) Business progress and result 1) Overview The LINE Group pushes ahead with its Smart Portal strategy. Under the strategy, we aim to bring about a world in which our LINE mobile messaging application (LINE) acts as a gateway, to encompass all aspects of people’s lives. As of December 31, 2019, LINE MAUs* in the Group’s four key countries (Japan, Taiwan, Thailand and Indonesia) were 164.0 million, up 0.2% from the previous fiscal year-end, while MAUs in Japan increased by 4.0 million to 83 million during the fiscal year. Also, the DAUs**/MAUs ratio, which indicates the level of engagement with users, remained high in the four key countries, at 79%. LINE had a particularly dominant position in the Japanese market, where the DAUs/MAUs ratio was 86%. The high engagement that LINE enjoys places the Group in a dominant position in terms of strategy promotion and future business expansion. Using LINE as a platform, the Group has created unrivaled services in a wide range of areas such as stickers, games, manga, news and other content services as well as payment and shopping. Leveraging the vast know-how and data accumulated through the growth of these services enables us to provide services that meet each user’s interest, creating a virtuous cycle. In addition, based on the strong growth of LINE, the Group recognizes the three years from the fiscal year ended December 31, 2019 as the “second founding period” and continues its endeavors to explore new business areas such as O2O / commerce, fintech, and AI.

Revenues in the fiscal year ended December 31, 2019 totaled 227.5 billion yen, a new record for the Group, increasing 9.8% year on year. This increase in revenue was mainly driven by an increase in advertising sales due to the stable growth of display ads and account ads services. There was a loss from operating activities of 39.0 billion yen (which was a profit of 16.1 billion yen in the previous fiscal year), due to the increases in employee expenses accompanying business expansion, development expenses relating to the initiatives for the Strategic business, and marketing expenses for LINE Pay and other services. As a result of the above, loss attributable to the shareholders of the Company was 46.9 billion yen whereas the previous fiscal year saw a loss of 3.7 billion yen.

* Monthly Active Users (MAUs) in a given month refers to the number of user accounts that (i) launched LINE or LINE GAME from mobile devices; (ii) sent messages through LINE or any other LINE application from personal computers or mobile devices, in each case at least once during that month.

** Daily Active Users (DAUs) in a given day refers to the number of user accounts that (i) launched LINE or LINE GAME from mobile devices; (ii) sent messages through LINE or any other LINE application from personal computers or mobile devices, in each case at least once during that day.

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2) Business status by segment

Principal services: LINE Ads Platform, LINE Official Account, LINE Sponsored Stickers, LINE Sales Promotion, etc.

- Against the backdrop of steady expansion of the internet advertising market, revenues from advertising services were 124.8 billion yen, an increase of 15.3% year on year, representing 54.9% of the total revenue of the Group and became the driving force that boosted the Group’s overall revenues. - In the display ads that provide a programmatic advertising platform, we have launched the “Smart Channel” service that distributes ads shown at the top of the talk list of the LINE app. As a result of the continuous improvement of advertising platform functionality and an increase in advertisers, the display ads revenues grew significantly with 37.1% increase from the previous fiscal year’s annual revenues. - In the account ads, to reach a wider range of advertisers, we introduced a new pay-as-you-go pricing plan for the LINE Official Account. These activities have driven a steady increase in the number of accounts, leading to an increase in revenue of 10.5% year on year.

Principal services: Stickers, LINE GAME, LINE Manga, LINE MUSIC, etc.

- Revenues from Content, Communication and Others were 71.9 billion yen, an increase of 2.4% year on year. - In LINE GAME, we carried out large-scale collaboration and events in addition to launching new titles, generating the steady revenues. - In LINE Manga and LINE MUSIC, implementation of measures such as functional improvement and content enhancement drove the steady development of the services and a substantial increase in the settlement volume and the number of users.

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Principal services: LINE Pay, LINE Score, LINE Pocket Money, LINE Securities, LINE Friends, LINE SHOPPING, LINE Delima, LINE BRAIN, LINE Car Navigation, etc.

- Settlement volume through LINE Pay showed substantial growth fueled by the increasing recognition of payments by QR codes, which redeem reward points to users for cashless payments, the system of which was introduced in connection with the consumption tax hike. The settlement volume grew by 10.4% year-on-year to 1,179.9 billion yen. We have announced a collaboration with Visa as part of our efforts to offer more convenience to LINE Pay users. In addition, to further expand the service, we launched the LINE Pay Easy Money Transfer Service, which enables remittances from companies to individuals, and a bank transfer service. Furthermore, we have achieved two million locations in Japan that accept LINE Pay’s payment by smartphone. - Other financial business also has expanded its services smoothly, launching such services as LINE Score, LINE Pocket Money, and LINE Securities. - LINE BRAIN, LINE’s AI solution business, has begun offering AI technologies such as chatbot technology, character recognition technology, and voice recognition technology to external companies. We have launched LINE Car Navigation, which is equipped with a car navigation engine developed by Toyota Motor Corporation and enables the operation by voice using the AI assistant, Clova.

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3) Initiatives in 2019

January 4 Established LINE Healthcare Corporation, a new jointly invested company for online healthcare business. April 1 Adopted the two Representative Directors structure, naming Takeshi Idezawa as Representative Director, President and CEO and Jungho Shin as Representative Director and Chief WOW Officer (CWO).

April 16 Started providing a platform for novels, LINE NOVEL. April 18 Started providing a food takeout service, LINE Pockeo. May 20 – 29 LINE Pay run the largest reward campaign to date in the history of LINE, “Welcome Reiwa: 30 Billion Yen Giveaway.”

June 27 Started providing our proprietary scoring service LINE Score. Launched the LINE BRAIN business, through which the AI technologies developed and owned by the Company will be offered to outside companies. August 1 Started providing an Ad network service LINE Ads Platform for Publishers. August 20 Started providing a new mobile investment service LINE Securities. August 29 Started providing a personal loan service LINE Pocket Money. September 5 Started providing an AI car navigation app, LINE Car Navigation. September 17 Started providing BITMAX, a cryptocurrency trading service for the Japanese market. October 13 Opened LINE CUBE SHIBUYA, a next-generation hall for communications. October 31 Started the public release of LINE entry, a free-of-charge programming learning platform. November 25 Started providing LINE Lawyer Consultation, which offers consultation services free of charge for various legal disputes on LINE. December 23 Executed a definitive agreement on business integration with Z Holdings.

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4) Background of the business integration and the basic strategy of the integrated company

Background - The social and industrial circumstances that surround us are experiencing drastic changes on a daily basis and on a global scale, and in the internet market in particular, foreign companies, particularly those in the United States and China, overwhelmingly dominate the industry. - The reality is that when comparing the sizes of companies in this industry, there is a great disparity when American and Chinese companies are compared with companies in Japan and other Asian countries, excluding China. - Japan is in the midst of having to address demand for productivity increases in the face of a decreasing labor population and the need for a more rapid response to emergencies such as natural disasters. It is expected to further utilize artificial intelligence and other technology in these areas.

Basic strategy - The Group and Z Holdings Group will consolidate their operating resources, strengthen their respective business areas, make business investments for growth in other new market sectors, provide more convenient user experiences to Japanese users, and deploy this innovative model throughout Asia and the world.

We aim to become the AI tech company that leads the world from Japan and Asia.

5) Areas in which the business integration is expected to generate synergies

Utilizing “multi-big data” of LINE users and Z Holdings will enable all Marketing business companies engaged in marketing activities in Japan to conduct their marketing activities more efficiently. By connecting LINE users with the e-commerce services of Z Holdings, the Attracting customers expectation is that there will be increased customer traffic for all services. Collaboration between the payments and financial business improves Fintech business convenience for both users and retail outlets. New business/system AI infrastructure development that will support all services is further development strengthened and accelerated.

6) Planned flow towards the business integration

- SoftBank Corp. and NAVER Corporation or its wholly owned subsidiary (Japanese corporation; hereinafter collectively with NAVER Corporation referred to as “NAVER”) plan to carry out a joint tender offer to acquire all of the Company’s shares, etc. (the Company’s shares, warrants, convertible bonds with warrants, and the American Depositary Receipt).

Current plan Proposed commencement date of the joint tender offer: May or June 2020 * Joint tender offer price: ¥5,380 * The joint tender offer is subject to the successful completion of the procedures by competition regulators in Japan and foreign countries, which makes it difficult to accurately predict the time required for such completion. The actual schedule of the joint tender offer will be announced promptly after it is finalized.

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- In the event that SoftBank Corp. and NAVER are unable to acquire all of the Company’s shares, etc. in the joint tender offer, a minority squeeze-out procedures will take place to make SoftBank Corp. and NAVER the sole shareholders of the Company, paying the consideration to other shareholders of the Company who did not participate in the joint tender offer in the amount which is the same as the tender offer price under the joint tender offer. - We aim to complete the business integration in October 2020 after going through other necessary procedures and processes.

7) FAQs

How are overlapping businesses to be treated? While the way in which the two companies will specifically work together will be considered after the business integration is completed, we will address the issue of overlapping businesses after the integration by discussing specific measures to take full advantage of their respective strengths.

How was the joint tender offer price decided? The price was determined by SoftBank Corp. and NAVER Corporation, based on the discussions and negotiations with the Company. We decided to assent to, and recommend the subscription to, the joint tender offer, based on recommendations by the Special Committee consisting of our three outside Directors who are independent officers of the Company.

If I do not participate in the joint tender offer, how will my shares be treated? Following the completion of the joint tender offer, a minority squeeze-out will be carried out to take the Company private. To each of the Company’s shareholders who did not participate in the joint tender offer, the consideration will be paid in the same amount as the joint tender offer price under the joint tender offer for each of the shares held by them immediately before the squeeze-out comes into effect.

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(2) Changes in assets and profit (loss) Changes to key consolidated performance indicators of the Company are shown in the table below. (In millions of yen) 20th term 17th term 18th term 19th term (Current fiscal year) Revenues 140,704 167,147 207,182 227,485 Profit (loss) before income taxes 17,990 18,145 3,354 (51,616) from continuing operations Profit (loss) attributable to the 6,763 8,078 (3,718) (46,888) shareholders of the Company Basic earnings (loss) per share 34.84 36.56 (15.62) (196.07) (Yen) Total assets 256,089 303,439 486,587 541,352 Total equity 161,023 189,977 208,514 174,663 Notes: 1. The above performance indicators are based on the consolidated financial statements prepared under International Financial Reporting Standards (IFRS). 2. Basic earnings (loss) per share is calculated by dividing profit (loss) attributable to the shareholders of the Company by the weighted average number of common shares outstanding for the year.

(3) Issues to be addressed Although the market of the internet industry in which the Group is engaged is growing rapidly, competition from other companies is also intensifying as a result of an increase in new entrants. Under these circumstances, the Group develops LINE as a form of social infrastructure, continuously expanding the amount of new content and services in order to meet the diversifying needs of users, and prepares the organizational structures to achieve the same. Furthermore, the Group is aware that the further strengthening of corporate governance, in accordance with business expansion, is an important issue. Specifically, we consider the following to be the key issues.

1) Continuous growth of LINE The Group considers that continuing to provide the content and service that users need through LINE is indispensable for the stable and continuous development of the Group. As well as raising the number of users and enhancing user engagement, the continuous provision of new content and the expansion of the service lineup further bolster the LINE platform. The Group’s policy is to continue to work on the provision of innovative services by leveraging its significant capabilities in planning and development.

2) Expanding the revenue base The Group searches unceasingly for new monetization opportunities. In addition to expanding the user base through LINE, we provide content and services that make the users’ life richer and more convenient on the LINE platform. The growth of these services in line with the users’ use expands our revenue base. Moreover, maintaining strong user engagement through the provision of these content services will enable our platform to provide higher media value for advertisers, leading to a further increase in advertising revenue. In addition to enhancing the value offered to users, advertisers and platform business partners in the fields of advertisement, communication and content, which are regarded as the Core business of the Company, we will actively promote the creation of new added value through development of existing services and introduction of new services in the areas mainly focusing on O2O / commerce, fintech, and AI, which we consider as the Strategic business contributing to medium- to long-term growth.

3) Developing overseas business In June 2011, we launched LINE to the public in Japan, followed by launches in overseas countries. We believe LINE is the leading mobile messaging application in Japan, Thailand, Taiwan and

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Indonesia in terms of number of users, and we have obtained a substantial number of users worldwide, including the United States, South Korea, Vietnam, Saudi Arabia and Malaysia. Going forward, the Group will maintain a particular focus on markets in Asia and elsewhere where LINE is highly recognized, aiming to expand the user base and enhance the user engagement for not only messaging application but also other services.

4) Competition The LINE product provided by the Group faces significant competition, not only direct competition from mobile messaging service providers, but also competitions from companies that provide products and services that potentially compete with specific functions of services provided on the LINE platform, such as a variety of social network services, online advertising services, game companies, mobile telecommunication carriers, e-commerce companies, music distribution companies, AI-related companies and fintech-related companies. As well as expanding the user base through the practicality, performance and reliability of our products and services, and through establishment and maintenance of relationships with platform business partners, we leverage the size and composition of the Group’s user base to attract companies to provide appealing contents and services, and aid differentiation. Moreover, we compete with mass media including online media for a share of advertisers’ budgets and in the development of tools and systems for managing and optimizing advertising campaigns. In order to ensure the advertisers’ budget for us, we are working to differentiate our services from the competition by improving the advertising platform functions, which include promotion of service use by users, securing of advertising inventory, and targeting functions. In addition to such differentiation, the Group is enhancing the convenience of existing services to drive further growth while significantly stepping up its introduction of new services and overseas expansion initiatives.

5) Hiring highly skilled personnel The Group perceives the hiring, on a timely basis, of highly skilled personnel essential to its further growth going forward to be an important management issue. We experience significant competition for highly skilled personnel, including senior management, engineers, designers and product managers, and our hiring costs are on a rising trend. To ensure the Group can effectively hire highly skilled personnel, we will strengthen the hiring competitiveness of our corporate culture through instituting improvements to areas of the human resource system such as the environments that lead to the heightened motivation of employees, including the creation of work environments that encourage independence, creativity, and innovation; as well as the rewards, compensation, and the like.

6) Strengthening management structures and compliance with laws and regulations The number of employees is rising sharply due to the expansion of our operations, and in order to run an organization that can respond quickly and flexibly to changes in market trends, competing companies, and customer needs and also to continuously enhance corporate value, the Group will use Advisory Committee to improve governance, in addition to working to strengthen internal control structures and structures designed to thoroughly inculcate compliance with laws and regulations.

7) Strengthening system infrastructure As one of the measures to protect users’ personal information, we have been investing in technologies and human resources. The Security Department of the Group has been actively investigating security vulnerabilities by examining the safety of commercial tools and code, conducting penetration tests, and utilizing internal and external audits. Furthermore, the Group has established its internal policies for enforcing rigorous practices concerning measures to protect information and obtained international certification for both security and privacy. Moreover, based on our policy that the user has the right to determine what they share and with whom they share it, we do not monitor private communications between users. The Group is continually committed to building a reliable system that users can use with peace of mind by making an upfront investment in equipment including load balancing capabilities that accommodate the increasing number of users, strengthening system infrastructure on an ongoing

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basis, and further developing technologies for handling large volumes of data and robust capabilities for recovering from system failures.

8) Secure the safety and soundness of services The LINE product provided by the Group is a tool that facilitates close communications between users. Due to the nature of the service, we are extremely concerned about the occasional incidents in which users get into trouble, and we have taken various countermeasures. LINE is designed in such a way as to allow its users to select whether or not to permit other users to do an account search by the LINE ID, and it blocks users who have not completed an age verification or who are below the age of 18 from registering a LINE ID or using the LINE ID search function for the purpose of preventing troubles of minor users. The Group is also working on the development of information ethics education by developing educational materials to raise awareness of healthy use of the internet among young people and continuing to conduct educational lecture activities, since 2012, aimed at children pupils and students, school staff, PTA and so on, calling for safe and secure usage of the internet. Going forward, we will strive to secure the safety and soundness of our services, such as by continually devising appropriate mechanisms to protect users, as needed.

9) Initiatives for the SDGs In September 2015, the United Nations Sustainable Development Summit adopted the Sustainable Development Goals (SDGs) as an action plan for human and global prosperity. The SDGs consist of 17 goals and 169 targets, aiming to overcome global challenges in the 21st century, from poverty, hunger, good health and well-being, to decent work and economic growth, gender equality, and environmental issues, thereby realizing the sustainable world. We uphold these goals and believe we should actively work on them. The Group will contribute to the creation of sustainable society by earnestly facing various social issues and giving a positive impact on society and the environment through its businesses. On December 23, 2019, the Company agreed with Z Holdings Corporation (hereinafter referred to as “ZHD”) on business integration based upon a spirit of equality (hereinafter referred to as the “Business Integration”). With the Business Integration, the Group considers the following to be the management issues in addition to the above issues.

i) Promotion of the Business Integration On December 23, 2019, the Company and ZHD executed a business integration agreement regarding the Business Integration, which sets forth the method of transactions through which the four companies including their respective parent companies, Softbank Corp. and NAVER Corporation, will effect the Business Integration, and a capital alliance agreement, which sets forth the governance and management of the integrated company after the Business Integration, respectively. We aim to proceed with discussions among the parties aimed at the Business Integration and the necessary procedures, and complete the Business Integration in October 2020. Please note that although the Company and ZHD will proceed with the Business Integration, the Business Integration is conditioned on the assumption that the procedures and acquisition of permits, licenses and approvals required under competition laws, foreign exchange laws and other applicable laws and regulations will be completed, and that other conditions set forth in the business integration agreement are satisfied. For this reason, the schedule currently drawn up may change due to the progress of relevant discussions between the parties or the outcome of the review by the competition regulators.

ii) Effect utilization of operating resources held by the integrated company after the Business Integration The Company and ZHD will, by consolidating their operating resources through the Business Integration, provide more convenient user experiences to Japanese users by strengthening their respective business areas, and making business investments for growth in other new market sectors, and bring progress to Japanese society and industry. They will then deploy this

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innovative model throughout Asia and the world, with the aim of becoming the AI tech company that leads the world from Japan and Asia. Therefore, it is necessary to formulate and promote group-wide business strategies that can make the effective utilization of operating resources and maximize synergistic effects.

(4) Capital investments Total capital investments by the Group in fiscal year 2019 were 10,319 million yen. Main investments included the purchase of servers and networking equipment of 4,880 million yen, carried out with the goal of stable operation of the systems for the provision of LINE services. No important facilities were retired.

(5) Financing No special items to report.

(6) Important parent company and subsidiaries 1) Parent company The Company’s parent company NAVER Corporation holds 72.57% of the Company’s voting rights.

2) Important subsidiaries Share capital or Name Voting rights ratio Principal business investments in capital Overseas operations and LINE Plus Corporation KRW24.713 billion 100% marketing related to LINE services LINE Financial Planning and marketing of JPY39.0 billion 100% Corporation fintech business

3) Important organizational restructuring, etc. No special items to report.

(7) Major place of business (As of December 31, 2019) 1) The Company Name Location Head office Shinjuku-ku, Tokyo

2) Principal subsidiaries Company name Location Within LINE Fukuoka Corp. Fukuoka City, Fukuoka Japan LINE Pay Corporation Shinagawa-ku, Tokyo LINE Ventures Corporation Shinjuku-ku, Tokyo Gatebox Inc. Chiyoda-ku, Tokyo BALIE Corporation Sendai City, Miyagi LINE Friends Japan Corporation Shinjuku-ku, Tokyo LINE TICKET Corporation Shinjuku-ku, Tokyo Next Library Corporation Shinjuku-ku, Tokyo LINE Financial Corporation Shinagawa-ku, Tokyo LVC Corporation Shinagawa-ku, Tokyo LINE Credit Corporation Shinagawa-ku, Tokyo LINE Growth Technology Corporation Shinjuku-ku, Tokyo LINE Securities Corporation Shinagawa-ku, Tokyo LINE Digital Frontier Corporation Shinjuku-ku, Tokyo LINE CONOMI Corporation Shinjuku-ku, Tokyo LINE Healthcare Corporation Shinjuku-ku, Tokyo LINE Business Support Corporation Shinjuku-ku, Tokyo

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Company name Location Overseas LINE Plus Corporation Seongnam, Gyeonggi-do, South Korea LINE PLAY Corporation Seoul Special City, South Korea LINE SOUTHEAST ASIA CORP. PTE. LTD. Singapore, Singapore LINE Company (Thailand) Limited Bangkok, Thailand LINE Taiwan Limited Taipei, Taiwan LINE Biz Plus Corporation Seongnam, Gyeonggi-do, South Korea Line Biz+ Taiwan Limited Taipei, Taiwan PT. LINE Plus Indonesia Jakarta, Indonesia LFG HOLDINGS LIMITED (Hong Kong Special Administrative Region of the People’s Republic of China) LINE Friends Corporation Seoul Special City, South Korea LINE Euro-Americas Corp. California, U.S.A. LINE Financial Plus Corporation Seongnam, Gyeonggi-do, South Korea LINE Financial Asia Corporation Limited (Hong Kong Special Administrative Region of the People’s Republic of China) LINE TECH PLUS PTE.LTD. Singapore, Singapore

(8) Employees (As of December 31, 2019) 1) Employees of the Group Changes from the previous Business segments Number of employees fiscal year-end Core business 4,536 [195] + 622 [- 71] Strategic business 2,152 [90] + 577 [+3] Corporate (common) 1,225 [35] + 226 [- 9] Total 7,913 [320] + 1,425 [- 77] Notes: 1. The Corporate (common) represents the number of employees in the administration departments and the engineering departments that cannot be divided into segments. 2. The number of employees is the number of employees currently on duty excluding individuals seconded from the Group to outside the Group and including individuals seconded to the Group from outside the Group. 3. The number in the bracket in the “Number of employees” row refers to the yearly average number of temporary employees (calculated using 7 hours, 30 minutes as one work day). 4. The number of employees increased by 1,425 during the current fiscal year, reflecting mainly mid-career hires associated with expanded business operations.

2) Employees of the Company Changes from the previous Number of employees Average age Average years of service fiscal year-end 2,457 [95] + 554 [+5] 35 3 years Notes: 1. The number of employees is the number of employees currently on duty excluding individuals seconded from the Company to other companies and including individuals seconded to the Company from other companies. 2. The number in the bracket in the “Number of employees” row refers to the yearly average number of temporary employees (calculated using 7 hours, 30 minutes as one work day). 3. The number of employees increased by 554 during the current fiscal year, reflecting mainly mid-career hires associated with expanded business operations.

(9) Major lenders (As of December 31, 2019) (In millions of yen) Lender Borrowings outstanding Sumitomo Mitsui Banking Corporation 12,000 Mizuho Bank, Ltd. 10,000 Resona Bank, Limited 1,000

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(10) Other significant matters pertaining to the current condition of the Company On December 23, 2019, the Company and Z Holdings Corporation executed a business integration agreement (hereinafter referred to as the “Business Integration Agreement”) regarding their business integration based upon a spirit of equality (hereinafter referred to as the “Business Integration”), which sets forth the method of transactions through which the four companies including their respective parent companies, Softbank Corp. and NAVER Corporation, will effect the Business Integration, and the Company and Z Holdings Corporation executed a capital alliance agreement, which sets forth the governance and management of the integrated company after the Business Integration. Going forward, based on the Business Integration Agreement, SoftBank Corp. and NAVER Corporation or its wholly owned subsidiary plan to carry out a joint tender offer to acquire all of the Company’s shares, etc. (the Company’s shares, warrants, convertible bonds with warrants, and the American Depositary Receipt). The details of the Business Integration are as described in the “Announcement Regarding Definitive Agreement on Business Integration” released on December 23, 2019, which is posted on our website (https://scdn.line-apps.com/stf/linecorp/ja/ir/all/LINE_20191223.pdf) on the Internet. Please note that the implementation of the Business Integration is conditioned on the assumption that the procedures and acquisition of permits, licenses and approvals required under competition laws, foreign exchange laws and other applicable laws and regulations of the relevant countries will be completed, and that other conditions set forth in the Business Integration Agreement are satisfied.

2. Share information (As of December 31, 2019) (1) Total number of authorized shares Common share: 690,000,000 shares

(2) Total number of issued shares Common share: 241,133,142 shares Notes: The total number of issued shares has increased by 608,500 shares as a result of warrants exercised during the current fiscal year.

(3) Number of shareholders 20,896

(4) Top 10 shareholders Name Number of shares held Shareholding ratio NAVER Corporation 174,992,000 shares 72.57% MSIP CLIENT SECURITIES 5,203,972 shares 2.15% MOXLEY & CO LLC 4,958,961 shares 2.05% Jungho Shin 4,760,500 shares 1.97% KSD - MIRAE ASSET DAEWOO (CLIENT) 4,631,600 shares 1.92% GOLDMAN SACHS INTERNATIONAL 3,512,952 shares 1.45% MLI FOR CLIENT GENERAL OMNI NON 3,459,400 shares 1.43% COLLATERAL NON TREATY - PB GOLDMAN, SACHS& CO. REG 3,456,813 shares 1.43% J.P. MORGAN BANK LUXEMBOURG S.A. 1300000 2,698,804 shares 1.11% Joonho Lee 1,638,000 shares 0.67% Notes: 1. The shareholding ratio has been rounded down to units of one hundredth of a percent. 2. The shareholding ratio has been calculated by deducting 2,692 shares of the treasury shares of the Company. In such calculation, the treasury shares do not include the Company’s shares held by Trust & Custody Services Bank, Ltd. (Trust Account E) as its trust assets of the Employee Stock Ownership Plan (J-ESOP). 3. The number of shares held by KSD - MIRAE ASSET DAEWOO (CLIENT) includes 4,594,000 shares of the Company substantially held by Hae-jin Lee, a Director of the Company.

(5) Other significant matters related to shares No items to report.

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3. Warrants, etc. of the Company (1) Warrants owned by officers of the Company that have been issued as compensation for their execution of duties as of the end of the current fiscal year Name 16th Warrants 20th Warrants 22nd Warrants 23rd Warrants Number of warrants 91 12,621 30,240 240 Directors (excluding 2 4 4 - Number of outside holders Directors) Outside - - - 3 Directors Class and number of shares Common shares of Common shares of Common shares of Common shares of to be issued upon exercise the Company the Company the Company the Company of warrants (per warrant) 500 shares 100 shares 100 shares 100 shares Amount of payments (per Gratis ¥154,500 ¥150,790 ¥150,790 warrant) Exercise value ¥1,320 ¥4,206 ¥3,500 ¥3,500 February 4, 2017 to July 18, 2018 to July 29, 2022 to July 29, 2022 to Exercise period February 3, 2025 July 18, 2027 July 8, 2029 July 8, 2029 Notes: 1. The above-mentioned warrants do not include the holdings of the Company’s Corporate Auditors. 2. Of the above mentioned warrants, the principle conditions for exercise of the 16th warrants are as follows: 1) In cases where a warrant holder dies, his/her heirs cannot exercise those warrants. However, this shall not apply if the Board of Directors approves. 2) A warrant holder must be in a position of either Director, Corporate Auditor, Executive Officer (Shikkoyaku), employee, or equivalent position of the Company or a subsidiary or associate of the Company at the time that the warrants are exercised; provided, however, that this does not apply in cases when the holding or exercise of warrants by a warrant holder has been acknowledged beforehand at a meeting of the Board of Directors. 3) Each warrant may not be partially exercised. 3. Of the above mentioned warrants, the principle conditions for exercise of the 20th warrants and the 23rd warrants are as follows: 1) In cases where a warrant holder dies, his/her heirs cannot exercise those warrants. However, this shall not apply if the Company’s Board of Directors approves. 2) A warrant holder must be in a position of Director of the Company or a subsidiary or associate of the Company at the time that the warrants are exercised; provided, however, that this does not apply in cases when a warrant holder has retired from the position of Director of the Company or a subsidiary or associate of the Company due to the expiry of his/her term of office, or when a justifiable reason is acknowledged at a meeting of the Board of Directors. 3) Each warrant may not be partially exercised. 4. Of the above mentioned warrants, the principle conditions for exercise of the 22nd warrants are as follows: 1) In cases where a warrant holder dies, his/her heirs cannot exercise those warrants. However, this shall not apply if the Company’s Board of Directors approves. 2) A warrant holder must be in a position of Director of the Company or a subsidiary or associate of the Company at the time that the warrants are exercised; provided, however, that this does not apply in cases when a warrant holder has retired from the position of Director of the Company or a subsidiary or associate of the Company due to the expiry of his/her term of office, or when a justifiable reason is acknowledged at a meeting of the Board of Directors. 3) Each warrant may not be partially exercised. 4) Warrant holders may exercise the warrants up to the number of units listed in the following items (i) through (iii) only if the stock price of the common shares of the Company satisfies the conditions set forth in the relevant items (i) through (iii). In such case, any fraction of exercisable warrants arising from the calculation pursuant to such items (i) through (iii) shall be rounded down, and only the warrants without such fraction may be exercised. If it is appropriate to adjust the Standard Stock Price (as defined in (i)) because of a merger, an issuance of shares for subscription, a share split or share consolidation, etc., the Company shall adjust the Standard Stock Price as necessary to a reasonable extent. Warrant holders may exercise the warrants for the period set forth in “Exercise period for warrants” above up to the maximum number of units for the exercise if the stock price of the common shares of the Company satisfies the conditions listed in the following items (i) through (iii). (i) If, on any day from the day exactly three years after the Allotment Date until the day exactly six years after the Allotment Date, the average closing price in ordinary trading of the Company’s common shares on the Tokyo Stock Exchange during the ten-business-day period immediately preceding that day (including the day itself, but excluding the day on which no ordinary trading

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of the Company’s common shares is executed; the same applies to the items 4) (i) through 4) (iii)) exceeds 7,518 yen (hereinafter “Standard Stock Price”): 20% of the total number of allotted warrants (ii) If, on any day from the day exactly four years after the Allotment Date until the day exactly seven years after the Allotment Date, the average closing price in ordinary trading of the Company’s common shares on the Tokyo Stock Exchange during the ten-business-day period immediately preceding that day (including the day itself) exceeds the Standard Stock Price: 30% of the total number of allotted warrants (iii) If, on any day from the day exactly five years after the Allotment Date until the day exactly eight years after the Allotment Date, the average closing price in ordinary trading of the Company’s common shares on the Tokyo Stock Exchange during the ten-business-day period immediately preceding that day (including the day itself) exceeds the Standard Stock Price: 50% of the total number of allotted warrants

(2) Warrants granted to employees of the Company and officers and employees of subsidiaries as compensation for their execution of duties during the current fiscal year Name 24th Warrants Employees of the Company 8,089 Number of warrants Employees of subsidiaries 8,459 Employees of the Company 433 Number of recipients Employees of subsidiaries 506 Common shares of the Class and number of shares to be issued upon exercise of Company warrants (per warrant) 100 shares Amount of payments (per warrant) ¥142,176 Exercise value ¥3,500 July 29, 2022 to Exercise period July 8, 2029 Notes: Principle conditions for exercise of the above-mentioned warrants are as follows: 1) In cases where a warrant holder dies, his/her heirs cannot exercise those warrants. However, this shall not apply if the Company’s Board of Directors approves. 2) A warrant holder must be in a position of either Director, Corporate Auditor, Executive Officer (Shikkoyaku), Executive Officer (Shikkoyakuin) or employee of the Company or a subsidiary or associate of the Company at the time that the warrants are exercised; provided, however, that this does not apply in cases when a warrant holder has retired from the position of Director, Corporate Auditor, or Executive Officer (Shikkoyaku) of the Company or a subsidiary or associate of the Company due to the expiry of his/her term of office, or when a justifiable reason is acknowledged at a meeting of the Board of Directors. 3) Each warrant may not be partially exercised.

(3) Other significant matters related to warrants Zero coupon convertible bonds due Zero coupon convertible bonds due

2023 with warrants 2025 with warrants Resolution date of issuance September 4, 2018 September 4, 2018 Number of warrants 7,316 7,316 Class of shares to be issued upon Common shares Common shares exercise of warrants Exercise price per share upon ¥7,467 ¥7,518 exercise of warrants October 4, 2018 to September 6, October 4, 2018 to September 5, Exercise period 2023 2025 Balance of convertible bonds with ¥71,815 million ¥71,036 million warrants

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4. Officers of the Company (1) Directors and Corporate Auditors (As of December 31, 2019) Name Title and Responsibility Significant concurrent positions outside the Company Representative Director of LINE Book Distribution Representative Director, Corporation Takeshi Idezawa President and CEO Representative Director of LINE Digital Frontier Corporation Representative Director Jungho Shin Representative Director of LINE Plus Corporation and CWO Representative Director of LINE MUSIC Corporation Representative Director of LINE Ventures Corporation Jun Masuda Director and CSMO Representative Director of LINE TICKET Corporation Outside Director of Demae-can Co., Ltd. In Joon Hwang Director and CFO Representative Director of LINE Ventures Corporation Hae-jin Lee Chairman of the Board Attorney at law of T. Kunihiro & CO. Outside Director of Tokio Marine & Nichido Fire Insurance Co., Ltd. Tadashi Kunihiro Director Outside Audit & Supervisory Board Member of Mitsubishi Corporation Outside Audit & Supervisory Board Member of OMRON Corporation Attorney at law of Koji Kotaka Law Office Outside Director of Kenedix, Inc. Koji Kotaka Director Branch Representative in Japan of Apollo Management Japan Limited Director of MUSCA Inc. Representative Director of Hatoyama Research Institute, Ltd. Rehito Hatoyama Director Outside Director of Pigeon Corporation Outside Director of transcosmos inc. Full-time Corporate Hitoshi Kurasawa Auditor Representative Attorney of NAMEKATA International Law Office Yoichi Namekata Corporate Auditor Outside Director, Audit and Supervisory Committee Member of Suruga Bank Ltd. Director of Uematsu Certified Public Accountants Office Representative Director of SU Consultant Co. Ltd. Outside Director, Audit and Supervisory Committee Member Noriyuki Uematsu Corporate Auditor of Kamakura Shinsho, Ltd. Outside Director, Audit & Supervisory Committee Member of Astellas Pharma Inc. Notes: 1. Directors Tadashi Kunihiro, Koji Kotaka and Rehito Hatoyama are outside Directors. 2. Hitoshi Kurasawa, Yoichi Namekata and Noriyuki Uematsu are outside Corporate Auditors. 3. Noriyuki Uematsu is a certified public accountant, and has considerable knowledge concerning finance and accounting. 4. The Company appoints all outside Directors and outside Corporate Auditors as independent officers provided under the provisions of the Tokyo Stock Exchange and registers the individuals as such with that exchange.

(2) Changes to Directors during the current fiscal year Jungho Shin was selected as Representative Director in the extraordinary meeting of the Board of Directors held on March 28, 2019, and assumed the position on April 1, 2019.

(3) Summary of details of limited liability agreement The Company has entered into an agreement with Tadashi Kunihiro, Koji Kotaka, Rehito Hatoyama, Hitoshi Kurasawa, Yoichi Namekata and Noriyuki Uematsu to limit their liability for damages provided for in Article 423, Paragraph 1 of the Companies Act pursuant to the provisions of Article 427, Paragraph 1 of the said Act if they have acted in good faith and without gross negligence in

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performing their duties. The maximum amount of liability for damages in accordance with the agreement shall be 10 million yen or the minimum amount of the liability stipulated in Article 425, Paragraph 1 of the said Act, whichever is higher.

(4) Amount of compensation, etc. to Directors and Corporate Auditors Eight Directors 1,245 million yen (including 67 million yen for three outside Directors) Five Corporate Auditors 25 million yen (including 25 million yen for five outside Corporate Auditors) Notes: 1. The amount of compensation, etc. to Directors includes 137 million yen of Directors’ bonuses. 2. The amount of compensation, etc. to Directors does not include the portion for employee salaries paid to those Directors who also serve as employees. 3. The amount of compensation, etc. above includes the amount recorded as an expense in the current fiscal year related to warrants granted as consideration for the execution of duties (Directors: 800 million yen). 4. The maximum amount of compensation to Directors is up to 1.0 billion yen per year (excluding stock options) (by resolution of the 15th Ordinary General Meeting of Shareholders held on March 31, 2015). Separate from that amount, a resolution was passed with respect to setting a maximum limit of 8.0 billion yen for Directors (excluding outside Directors) and 63 million yen for outside Directors on the amount of compensation, etc. relating to warrants allocated as stock options in the 20th term (from January 1, 2019 to December 31, 2019) (at the 19th Ordinary General Meeting of Shareholders held on March 28, 2019). 5. The maximum amount of compensation to Corporate Auditors is up to 0.1 billion yen per year (by resolution of the 5th Ordinary General Meeting of Shareholders held on March 31, 2005). 6. The figures above include two outside Corporate Auditors who retired at the conclusion of the 19th Ordinary General Meeting of Shareholders held on March 28, 2019.

(5) Outside officers 1) Significant concurrent positions of outside officers and their relationships with the Company The Company has business transactions with transcosmos inc., where Director Rehito Hatoyama holds a significant concurrent position. There are no other special relationships between the Company and the companies in which each of the outside Directors and each of the outside Corporate Auditors of the Company holds significant concurrent positions.

2) Major activities in the current fiscal year

Attendance at Attendance at the meetings of the meetings of Classification Name the Board of Major activities the Board of Corporate Directors Auditors He provided appropriate and valuable advice and suggestions in meetings of the Board of Directors from his professional Director Tadashi Kunihiro 20/21 ― perspective as a lawyer, primarily on the topics of corporate crisis management, and organization of the compliance system. He provided appropriate and valuable advice and suggestions in meetings of the Director Koji Kotaka 21/21 ― Board of Directors based on his abundant insight relating to the financial and capital markets as a lawyer and investment banker. He provided appropriate and valuable advice and suggestions in meetings of the Board of Directors based on his abundant insight relating to business development Director Rehito Hatoyama 21/21 ― and corporate management overseas that he has acquired as a corporate manager, primarily on the topics of the contents business and the character license business.

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Attendance at Attendance at the meetings of the meetings of Classification Name the Board of Major activities the Board of Corporate Directors Auditors He provided appropriate and valuable advice and suggestions in meetings of the Full-time Hitoshi Board of Directors and meetings of the Corporate 21/21 14/14 Kurasawa Board of Corporate Auditors based on his Auditor long-standing experience as a corporate manager and extensive knowledge. He provided appropriate and valuable advice and suggestions in meetings of the Board of Directors and meetings of the Corporate Board of Corporate Auditors utilizing his Yoichi Namekata 16/18 9/10 Auditor abundant experience and extensive insight gained from acting as a lawyer with expertise in compliance, internal control and finance-related laws. He provided appropriate and valuable advice and suggestions in meetings of the Board of Directors and meetings of the Corporate Noriyuki 17/18 10/10 Board of Corporate Auditors utilizing his Auditor Uematsu abundant experience and extensive insight gained from acting as a certified public accountant. Notes: 1. In addition to the number of meetings of the Board of Directors mentioned above, there have been four resolutions in an electromagnetic record which were deemed to be made by the Board of Directors pursuant to the provisions of Article 370 of the Companies Act and Article 25, Paragraph 2 of the Articles of Incorporation of the Company. 2. Corporate Auditors Yoichi Namekata and Noriyuki Uematsu were newly appointed as Corporate Auditor at the conclusion of the 19th Ordinary General Meeting of Shareholders held on March 28, 2019, and thus the above attendance at the meetings of the Board of Directors and the Board of Corporate Auditors only cover those held since they assumed the position.

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5. Accounting Auditor (1) Accounting Auditor’s name PricewaterhouseCoopers Aarata LLC

(2) Accounting Auditor’s compensation, etc. for the current fiscal year (In millions of yen) 1) Amount of compensation, etc. for the current fiscal year 528 2) Total amount of money and other financial benefits to be paid by the 685 Company and its subsidiaries Notes: 1. The audit contract between the Company and PricewaterhouseCoopers Aarata LLC does not clearly distinguish between compensation, etc. paid for the audit conducted in accordance with the Companies Act and compensation, etc. paid for the audit conducted in accordance with Financial Instruments and Exchange Act. It is practically impossible to make such a distinction. Accordingly, the amount of compensation, etc. of Accounting Auditor for the current fiscal year stated above is the aggregate amount. 2. Of the Company’s important subsidiaries, LINE Plus Corporation is audited by Samil PricewaterhouseCoopers, an audit corporation other than the accounting auditor of the Company.

(3) Details of compensation for non-auditing services The Company entrusts the Accounting Auditor with advisory services regarding compliance and code of conduct questionnaires, which are services outside of the services stipulated in Article 2, Paragraph 1 of the Certified Public Accountant Act (non-auditing services). The Company pays compensation to the Accounting Auditor as consideration for these services.

(4) Reasons for approval of the Accounting Auditor’s compensation, etc. by the Board of Corporate Auditors When the Company concludes an audit contract with the Accounting Auditor, the Board of Corporate Auditors provides their approval for the Accounting Auditor’s compensation, etc. This approval is contingent on the Board of Corporate Auditors decision, based on the result of their consideration of each item, that the content of the Accounting Auditor’s audit plan, the status of their performance of duties in the previous fiscal year, and the grounds of the calculation of the compensation estimate are all appropriate.

(5) Policy on decision for dismissal or non-reappointment of Accounting Auditor In the event that there is an obstacle to the execution of duties by the Accounting Auditor, or when otherwise deeming the action necessary, the Board of Corporate Auditors will determine the content of a proposal to the General Meeting of Shareholders concerning the dismissal or non-reappointment of the Accounting Auditor. In addition, when the items in Article 340, Paragraph 1 of the Companies Act are applicable to the Accounting Auditor, the Board of Corporate Auditors will dismiss the Accounting Auditor by a unanimous resolution. In this case, a Corporate Auditor selected by the Board of Corporate Auditors shall report the dismissal of the Accounting Auditor and the reason for dismissal at the first General Meeting of Shareholders to be held after the dismissal.

6. Transactions with the parent company, etc. The Company has stipulated the Related Party Transaction Management Policy, pursuant to which any transaction between the Company or its subsidiary and any related party other than the Company’s subsidiaries or associates is subject to an approval of the Management Meeting by clarifying the necessity of the transaction and adequacy of its terms and conditions. From the perspective of protecting minority shareholders, the Company has established the Advisory Committee composed solely of outside Directors. The Advisory Committee has the right to conduct deliberations that include important matters in terms of related-party transactions and transactions involving conflicts of interest, the operational status of the Board of Directors, and policies on protecting minority shareholders, and to provide necessary suggestions to the Board of Directors. The Board of Directors respects the opinions of the Advisory Committee and makes necessary decisions about the management of the Company. On September 4, 2018, the Company issued Euro-yen zero coupon convertible bonds with warrants due 2023 through third-party allotment, and Euro-yen zero coupon convertible bonds with warrants due 2025 through third-party allotment (hereinafter collectively referred to as “Bonds”) to its parent

- 34 - company, NAVER Corporation, for the purpose of maintaining a certain level of ownership ratio in NAVER Corporation. This aims to mutually enhance the corporate value, as well as to continue to maintain and develop amicable business relationship and cooperation in the long term. In accordance with the Related Party Transaction Management Policy, we have obtained the approval of the Management Meeting for the issuance of the Bonds and put it to the deliberation by the Advisory Committee. The Advisory Committee has conducted a comprehensive review of such matters as whether the issuance is a necessary transaction for the growth of business of the Company and the Group and for aiming to enhance the corporate value for the medium- to long-term, the reason for selecting the intended allottee is rational, and the terms and conditions of the issuance is reasonable, as a result of which the Advisory Committee has given its opinion to the Company that the issuance of the Bonds is not unfavorable to minority shareholders. Based on this opinion, the Board of Directors of the Company has adopted a resolution for the issuance of the Bonds, judging the issuance will not harm the interests of the Company.

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Consolidated Financial Statements

Consolidated Statement of Financial Position (As of December 31, 2019)

(In millions of yen) Account Amount Account Amount

Current assets 295,641 Current liabilities 161,659 Cash and cash equivalents 217,345 Trade and other payables 43,710 Trade and other receivables 42,680 Other financial liabilities, current 44,826 Other financial assets, current 20,117 Accrued expenses 23,462 Contract assets 241 Income tax payables 3,963 Inventories 4,740 Lease liabilities, current 11,487 Other current assets 10,518 Contract liabilities 25,752 Non-current assets 245,711 Provisions, current 3,221 Property and equipment 25,024 Other current liabilities 5,238 Right-of-use assets 54,337 Non-current liabilities 205,030 Goodwill 17,651 Corporate bonds 142,851 Other intangible assets 7,801 Other financial liabilities, non-current 362 Investments in associates and joint ventures 64,194 Lease liabilities, non-current 45,150 Other financial assets, non-current 51,737 Deferred tax liabilities 1,071 Deferred tax assets 24,095 Provisions, non-current 4,528 Other non-current assets 872 Post-employment benefits 9,617 Other non-current liabilities 1,451 Total liabilities 366,689

Equity attributable to the shareholders of 158,133 the Company Share capital 96,737 Share premium 121,299 Treasury shares (6,308) Accumulated deficit (53,524) Accumulated other comprehensive income (71) Non-controlling interests 16,530 Total shareholders’ equity 174,663 Total assets 541,352 Total liabilities and shareholders’ equity 541,352 (Note: Amounts are rounded to the nearest million)

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Consolidated Statement of Profit or Loss (From January 1, 2019 to December 31, 2019)

(In millions of yen) Account Amount

Revenues and other operating income: 230,696 Revenues 227,485 Other operating income 3,211

Operating expenses (269,693) Loss from operating activities (38,997) Finance income 512 Finance costs (1,980) Share of loss of associates and joint ventures (13,412) Loss on foreign currency transactions, net (72) Other non-operating income 3,878 Other non-operating expenses (1,545)

Loss before tax from continuing operations (51,616) Income tax expenses (384) Loss for the year from continuing operations (52,000) Profit from discontinued operations, net of tax 584

Loss for the year (51,416)

Attributable to: The shareholder of the Company (46,888) Non-controlling interests (4,528) (Note: Amounts are rounded to the nearest million)

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Non-consolidated Balance Sheets (As of December 31, 2019)

(In millions of yen) Account Amount Account Amount (Assets) (Liabilities) Current assets 124,460 Current liabilities 102,225 Cash and cash deposits 69,187 Accounts payable-trade 1,976 Accounts receivable-trade 32,017 Short-term loans payable 23,000 Securities 6,178 Accounts payable-other 30,143 Merchandise 36 Accrued expenses 14,599 Prepaid expenses 5,242 Income taxes payable 1,807 Other 12,200 Advances received 11,965 Allowance for doubtful accounts (401) Deposits received 4,455 Non-current assets 312,307 Unearned revenue 9,361 Property and equipment 20,100 Provision for LINE Points 2,203 Buildings 5,384 Other provision 931 Tools, furniture and fixtures 14,715 Other 1,781 Intangible assets 158 Non-current liabilities 151,708 Goodwill 63 Convertible bonds with stock acquisition rights 147,744 Software 83 Other provision 319 Other 11 Asset retirement obligations 3,276 Investments and other assets 292,048 Other 368 Investment securities 25,567 Total liabilities 253,934 Shares of subsidiaries and associates 225,888 (Net assets) Investments in other securities of 9,655 Shareholders’ equity 175,194 subsidiaries and associates Long-term loans receivable 3,515 Capital stock 96,736 Long-term prepaid expenses 336 Capital surplus 87,640 Deferred tax assets 22,849 Legal capital surplus 86,801 Other 6,761 Other capital surplus 839 Allowance for doubtful accounts (2,525) Retained earnings (2,874) Other retained earnings (2,874) Retained earnings brought forward (2,874) Treasury shares (6,307) Valuation and translation adjustments 2,734 Valuation difference on investment securities 2,734 Subscription rights to shares 4,903 Total net assets 182,833 Total assets 436,767 Total liabilities and net assets 436,767 (Note: Amounts are rounded down to the nearest million)

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Non-consolidated Statements of Income (From January 1, 2019 to December 31, 2019)

(In millions of yen) Account Amount Net sales 166,433 Cost of sales 95,318 Gross profit 71,115 Selling, general and administrative expenses 71,840 Operating loss (724) Non-operating income Interest income 723 Other 1,236 1,959 Non-operating expenses Interest expenses 32 Other 2,090 2,122 Ordinary loss (887) Extraordinary income Gain from liquidation of subsidiaries 1,274 1,274 Extraordinary losses Loss on valuation of shares of subsidiaries and associates 8,779 Bad debt expenses for doubtful accounts for subsidiaries and associates 388 9,167 Loss before income taxes (8,781) Income taxes-current 4,043 Income taxes-deferred (6,754) (2,711) Loss for the year (6,069) (Note: Amounts are rounded down to the nearest million)

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Independent Auditors’ Audit Report

February 25, 2020

To the Board of Directors of LINE Corporation PricewaterhouseCoopers Aarata LLC Designated Limited Liability Partner, Certified Public Accountant: Yoshihisa Chiyoda (Seal) Designated Limited Liability Partner, Certified Public Accountant: Nobuhiro Nasu (Seal) Designated Limited Liability Partner, Certified Public Accountant: Soichiro Hayashi (Seal)

Pursuant to Article 444, Paragraph 4 of the Companies Act, we have audited the consolidated financial statements, namely, the consolidated statement of financial position, the consolidated statement of profit or loss, the consolidated statements of changes in equity and the notes to the consolidated financial statements, of LINE Corporation (the “Company”) for the fiscal year from January 1, 2019 through December 31, 2019.

Management’s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements pursuant to the provisions of the latter part of Article 120, Paragraph 1 of the Ordinance on Accounting of Companies, which permits companies to omit some disclosure items required under designated IFRS in preparing consolidated financial statements, and for designing and operating such internal control as management determines is necessary to enable the preparation and fair presentation of the consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit as independent auditor. We conducted our audit in accordance with auditing standards generally accepted in Japan. Those standards require that we plan and perform the audit in accordance to such plan to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. The purpose of an audit is not to express an opinion on the effectiveness of the entity’s internal control, but in making these risk assessments, the auditor considers internal controls relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the consolidated financial statements referred to above, which were prepared with some disclosure items required under designated IFRS omitted pursuant to the provisions of the latter part of Article 120, Paragraph 1 of the Ordinance on Accounting of Companies, present fairly, in all material respects, the financial position and results of operations of LINE Corporation and consolidated subsidiaries for the period covered by these consolidated financial statements. - 40 -

Conflicts of Interest We have no interest in the Company which should be disclosed in compliance with the Certified Public Accountants Act.

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Independent Auditors’ Audit Report

February 25, 2020

Pursuant to Article 436, Paragraph 2, item 1 of the Companies Act, we have audited the non-consolidated financial statements, namely, the non-consolidated balance sheets, the non-consolidated statements of income, the non-consolidated statements of changes in equity, the notes to the non-consolidated financial statements, and the supplementary schedules of LINE Corporation for the 20th business term from January 1, 2019 through December 31, 2019.

Management’s Responsibility for the Non-consolidated Financial Statements and Others Management is responsible for the preparation and fair presentation of these non-consolidated financial statements and the supplementary schedules in accordance with accounting principles generally accepted in Japan, and for designing and operating such internal control as management determines is necessary to enable the preparation and fair presentation of the non-consolidated financial statements and the supplementary schedules that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility Our responsibility is to express an opinion on these non-consolidated financial statements and the supplementary schedules based on our audit as independent auditor. We conducted our audit in accordance with auditing standards generally accepted in Japan. Those standards require that we plan and perform the audit in accordance to such plan to obtain reasonable assurance about whether the non-consolidated financial statements and the supplementary schedules are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the non-consolidated financial statements and the supplementary schedules. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the non-consolidated financial statements and the supplementary schedules, whether due to fraud or error. The purpose of an audit is not to express an opinion on the effectiveness of the entity’s internal control, but in making these risk assessments, the auditor considers internal controls relevant to the entity’s preparation and fair presentation of the non-consolidated financial statements and the supplementary schedules in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the non-consolidated financial statements and the supplementary schedules. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion In our opinion, the non-consolidated financial statements and the supplementary schedules referred to above present fairly, in all material respects, the financial position and results of operations for the period covered - 42 - by these non-consolidated financial statements and the supplementary schedules in conformity with accounting principles generally accepted in Japan.

Conflicts of Interest We have no interest in the Company which should be disclosed in compliance with the Certified Public Accountants Act.

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Audit Reports

We, the Board of Corporate Auditors, have prepared upon consultation this Audit Report based on reports compiled by each Corporate Auditor with respect to Directors’ performance of their duties during the 20th business term from January 1, 2019 through December 31, 2019, as follows:

1. Auditing methods used by Corporate Auditors and the Board of Corporate Auditors, and details of audit (1) The Board of Corporate Auditors specified an auditing policy, allocation of duties and other relevant matters, and received reports from each Corporate Auditor on the status of implementation and results of audits and also received reports from Directors, etc. and Accounting Auditor on the status of the execution of their duties and asked them for explanations as needed. (2) Each Corporate Auditor complied with the auditing standards of Corporate Auditors, followed auditing policies, allocation of duties, and other relevant matters established by the Board of Corporate Auditors, has maintained good communications with Directors, the Internal Audit Department, and other employees, etc., and made efforts to optimize the environment for information collection and audit, and conducted an audit by the following methods described below. 1) We attended the meetings of the Board of Directors and other meetings as deemed important, received reports from Directors and employees, etc. on the execution of their duties, asked for explanations as necessary, perused the documents whereby the important decisions were made, and examined business and financial conditions at the Company. With respect to the subsidiaries of the Company, we have maintained good communications and exchanged information with Directors and corporate auditors, etc. of the subsidiaries and received reports on business conditions from the subsidiaries as needed. 2) As for the details of the resolution of the Board of Directors related to the establishment of the systems as indicated in the Business Report to ensure that the execution of the duties of Directors conform to laws and regulations and the Articles of Incorporation and the systems necessary to ensure appropriate operations of corporations and their subsidiaries as stipulated in Article 100, Paragraphs 1 and 3 of the Regulation for Enforcement of the Companies Act, and the condition of the systems put in place in accordance with the aforesaid resolution (internal control system), we received periodical reporting from Directors and employees, etc. sought explanations as necessary, and provided our recommendations. We included discussions of the matters of caution in Article 118, item 5, (a) of the Regulations for Enforcement of the Companies Act and the judgment and reasoning of item 5, (b) of the same Article in light of the status of discussions held at the Board of Directors meetings and other meetings. 3) We have monitored and verified whether the Accounting Auditor maintained their independence and properly implemented audits, received reports from the Accounting Auditor on the performance of their duties and asked them for explanations as necessary. The Accounting Auditor reported to us that “systems for ensuring proper execution of duties” (listed in each item of Article 131 of the Ordinance on Accounting of Companies) have been established in accordance with the quality control standards concerning audits (Business Accounting Council, October 28, 2005), and asked them for explanations as necessary.

Based on the methods mentioned above, we have reviewed the Business Report for the said business term and its supplementary schedules, non-consolidated financial statements for the said business term (non- consolidated balance sheets, non-consolidated statements of income, non-consolidated statements of changes in equity, and notes to non-consolidated financial statements) and their supplementary schedules and consolidated financial statements (consolidated statement of financial position, consolidated statement of profit or loss, consolidated statements of changes in equity, and notes to consolidated financial statements).

2. Results of Audit (1) Results of audit of Business Report, etc. 1) We consider that the Business Report and its supplementary schedules fairly present the situation of the Company in accordance with relevant laws and regulations and the Company’s Articles of Incorporation.

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2) With respect to the Directors’ performance of their duties, we have found neither undue transactions nor material facts that violate relevant laws and regulations or the Company’s Articles of Incorporation. 3) We consider that the details of the resolution made by the Board of Directors concerning internal control systems are proper. In addition, we have found no matters on which to remark in regard to the content of the Business Report and the performance of duties of the Directors regarding the internal control system. 4) Regarding the transactions with the parent company, etc. presented in the Business Report, we found no matters of potential detriment to the interests of the Company with respect to those transactions, and we found no matters on which to remark in regard to the judgment of the Board of Directors, and its reasons concerning whether those transactions were detrimental to the interests of the Company. (2) Results of audit of non-consolidated financial statements and their supplementary schedules We consider that the auditing methods and results of the Company’s Accounting Auditor, PricewaterhouseCoopers Aarata LLC, are proper. (3) Results of audit of consolidated financial statements We consider that the auditing methods and results of the Company’s Accounting Auditor, PricewaterhouseCoopers Aarata LLC, are proper.

February 25, 2020 The Board of Corporate Auditors, LINE Corporation Full-time Corporate Auditor Hitoshi Kurasawa (Seal) Corporate Auditor Yoichi Namekata (Seal) Corporate Auditor Noriyuki Uematsu (Seal)

(Note) Corporate Auditors Hitoshi Kurasawa, Yoichi Namekata, and Noriyuki Uematsu are outside Corporate Auditors as provided for in Article 2, item 16 and Article 335, Paragraph 3 of the Companies Act.

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LINE CSR Activities

Guided by its corporate mission – CLOSING THE DISTANCE – the Group is working closely with its stakeholders to solve social issues and create new value for society from two perspectives: working with regional communities and improving communication.

Working with Regional Communities Helping people The LINE messaging application was originally developed in response to deal with natural disasters the Great East Japan Earthquake occurred in March 2011.

Established the Council on Artificial Intelligence for Disaster Resilience to promote disaster prevention and relief through industry-academia-government collaboration In an effort to promote disaster prevention and relief activities, LINE established the Council on Artificial Intelligence for Disaster Resilience in June 2019 through industry-academia-government collaboration to capture signs of disaster occurrence, gather accurate information about damage caused by a disaster, and apply the AI technology to such signs and information for disaster countermeasures and recovery measures.

Launched the resident evacuation/flood prevention activity support projects utilizing SNS/AI technology with the Ministry of Land, Infrastructure, Transport and Tourism, etc. As the first nationwide training in collaboration with the Ministry of Land, Infrastructure, Transport and Tourism, etc., LINE provided support for people who are not good at using smartphones, such as the elderly, with voice information using the AI assistant Clova in Ise City, Mie. After the training, we will also conduct on-site demonstrations when an actual typhoon comes, and continue to promote the resident evacuation/flood prevention activity support utilizing SNS/AI technology.

LINE aims to realize the “Smart Portal” in which LINE acts as a gateway to Sophistication of connect the government with information and public services required by government services citizens, and procedures are completed.

Oversized trash collection through LINE in Fukuoka City LINE has collaborated with Fukuoka City to introduce chatbots for making requests to collect oversized trash, enabling residents to use LINE and LINE Pay to make the request and pay the collection fee, reducing the workload of handling requests by telephone.

Collaboration with Shibuya-ku for consultations about child-rearing LINE, in collaboration with Shibuya-ku, is providing child-rearing services as they become available, such as an automatic response function using AI that allows child-rearing households to have consultations at any time at their convenience as well as a chatbot that enables reservations for child-rearing classes and pregnant women interview. The results of such activities are verified jointly with the government and other organizations and are announced under the theme of the Review for Promoting the Utilization of Chatbots for Child-rearing.

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Improving Communication

Establishment of LINE MIRAI Foundation In an increasingly digitalized society, LINE has been working to create appropriate environment for the use of the internet by young people, and has engaged in information literacy education in cooperation with schools, companies, local municipalities and government agencies. This summer, we started providing programming education, expanding our area of activities. In addition to letting children enjoy and make the best use of ICT around us in a safe and secure manner, now we also help them develop the ability to make new creations, nourishing their ability to navigate life in the digital society. In order to return the insight and know-how obtained from these activities not only to corporate CSR activities but also to society and to make them more sustainable in a wider area, we established LINE MIRAI Foundation in December 2019. The Foundation will promote information literacy education and programming education, as well as financial literacy education and cyber-security education necessary in future society.

Ongoing holding of lectures (2,500 times annually) on information ethics education In 2019, the Group organized approximately 2,500 educational workshops on internet safety for children, parents, and teaching staff. Held across Japan, the workshops featured presentations and seminars that feature card-based training materials.

Public release of new educational materials for information ethics, “Let’s think about ‘fun communication’! ‘How to avoid online problems’ edition” We have developed new educational materials for information morals under the theme of “how to avoid online problems.” These educational materials are designed to encourage children to imagine risks on the internet and learn to avoid problems.

Public release of a programming learning platform

LINE entry The public release of our programming learning platform, LINE entry, started in October 2019. Educational materials on the platform allow children to freely move LINE characters around with visual programming, and help them learn the way of thinking for programming while having fun playing them. https://entry.line.me/

LINE provided an official account free of charge and shared its know-how for the nation-wide consultation project for such matters as bullying and child abuse, organized by the Ministry of Education, Culture, Sports, Science and Technology We have provided an official LINE account free of charge and are sharing our know-how for the consultation project utilizing SNS organized by the Ministry of Education, Culture, Sports, Science and Technology. In collaboration with local municipalities, this project aims to establish a system where young people feel free to have consultations, abolish bullying, and to create an environment where young people can engage in learning and other activities with peace of mind.

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Protection of LINE’s Information

The Group works tirelessly to realize our mission – CLOSING THE DISTANCE, to provide a social media environment through which all users can connect to family members, friends, etc. with peace of mind, and to provide dependable and secure services while giving top priority to protecting the important personal information of users.

Provision of Services with Due Consideration to Security

In order to protect important information, the Group has established a process in which specialists in relevant fields are involved in all phases from the planning of services to their release and operation, and ensures that services are provided with due consideration to security.

Protection of personal information and messages We consider the protection of the users’ privacy as an important management issue, and identify the impact of each service on privacy before proceeding with development. We give due consideration to not only laws of Japan but also GDPR and other personal information protection laws of foreign countries, treat the contents of messages as secrecy of communications and protect them strictly in particular. We also ensure that data are handled with due consideration to privacy throughout the life cycle of personal information. For example, text messages between users are under robust protection by applying by default the end-to-end encryption protocol Letter Sealing, in addition to implementing encryptions in all communication paths between the sender and the recipient.

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Robust security management system Servers that handle personal information held by LINE are under strict management in a state-of-the-art data center with world-class security facilities. The data center also implements such measures as around-the- clock monitoring by security staff, access restriction with IC cards and biometric authentication, and monitoring with surveillance cameras. We implement strict access control, and access may not be permitted without prior permission based on rational reasons even in LINE. In addition, a dedicated security team constantly monitors the network on a 24/7 basis, analyzes all activities that may jeopardize the security of LINE, and takes necessary measures immediately.

Security capabilities verified by certification organizations The Group takes measures to protect the personal information of users as its strict internal policies. It acquires and renews a number of security-related certifications from international organizations in order to have these measures evaluated from an external objective standpoint.

Utilization of objective insight from external specialists The Group is one of the few pioneering companies in Japan that have introduced the Bug Bounty Program (a reward system), which has been adopted recently by top IT companies worldwide. The LINE Security Bug Bounty Program receives vulnerability reports from outstanding engineers around the world. We are actively working to improve the safety of our services with the aim of achieving a world-class security level.

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Aiming for a Safer Internet Service

Cyber-attack response initiatives The Company designated June 9 as its Cyber Disaster Prevention Day to promote opportunities for educating people about internet security. For the third holding of Cyber Disaster Prevention Day in 2019, Amazon Japan G.K., NTT DOCOMO, INC., KDDI CORPORATION, SoftBank Corp. and Yahoo Japan Corporation participated, and we released videos, songs, diagnostic content and more under the theme of “account.” Approximately 5.7 million users watched them over a period of 14 days.

Hosting international summits The Company has held summits centering on security and privacy since 2017 together with Intertrust Technologies Corporation, a U.S.-based software company specializing in cyber security. In 2019, the summits were held in Tokyo in May followed by Paris in October. The events featured practical sessions and dynamic discussions with experts from all over the world on such topics as new risks in the fields of digital identity and privacy.

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