Notice of the 19Th 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 19th Ordinary General Meeting of Shareholders

Date: 10:00 a.m., Thursday, March 28, 2019

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

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. In 2018, we launched convenient and innovative financial services such as asset management, non-life insurance and financial account management in full scale. The settlement volume through LINE Pay service grew steadily, driven by the expansion of participating stores and the increased awareness of payments using QR code. We also announced our entry into the banking business to further strengthen the financial business area. In the advertising business, we started offering a new pricing plan for account ads in addition to the major renewal of our programmatic advertising platform. In 2019, we will continue working on further increasing the shareholder value through the steady growth of our advertising business, while stepping up investments in the financial business. I hope we can receive your continued support as we work to deliver the LINE Group’s business strategy.

Takeshi Idezawa, Representative Director and President

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Securities code: 3938 March 8, 2019 To our shareholders Takeshi Idezawa, Representative Director and President LINE Corporation 4-1-6 Shinjuku, Shinjuku-ku, Tokyo

Notice of the 19th Ordinary General Meeting of Shareholders

You are cordially invited to attend the 19th 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 27, 2019. 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 28, 2019 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 19th business term (from January 1, 2018 to December 31, 2018), 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 19th business term (from January 1, 2018 to December 31, 2018) Items To Be Resolved: Proposal No. 1 Partial Amendments to the Articles of Incorporation Proposal No. 2 Election of Eight (8) Directors Proposal No. 3 Election of Three (3) Corporate Auditors Proposal No. 4 Election of One (1) Substitute Corporate Auditor Proposal No. 5 Determination of Amounts and Details of Stock Options (Warrants) to Be Paid as Compensation, etc. to Directors (Excluding Outside Directors) Proposal No. 6 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. 1) Consolidated Statements of Changes in Equity and Notes to Consolidated Financial Statements 2) 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 28, 2019 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 27, 2019

How to fill out your voting card

Please indicate your approval or disapproval of each resolution here.

Proposals No. 1, No. 4, No. 5, No. 6 Proposals No. 2, No. 3  If you approve, put a circle in the APPROVAL  If you approve all candidates, put a circle in the box. APPROVAL box.  If you disapprove, put a circle in the  If you disapprove all candidates, put a circle in DISAPPROVAL box. the DISAPPROVAL box.  If you disapprove of some candidates, put a circle in the APPROVAL box, and write the candidates’ number of whom you disapprove. 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 27, 2019

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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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Reference Documents for the Ordinary General Meeting of Shareholders

Proposal No. 1 Partial Amendments to the Articles of Incorporation

1. Reason for proposal The Company proposes to add purposes to Article 2 (Purpose) of its current Articles of Incorporation in order to respond to the expansion and future diversification of the Group’s business.

2. Details of amendments The Company proposes amendments to the current Articles of Incorporation as set forth below:

(Amendments are indicated below with underlines.) Current Articles of Incorporation Proposed Amendments Articles 1. (Text omitted) Articles 1. (Unchanged)

(Purpose) (Purpose) Article 2. Article 2. The purpose of the company shall be to engage in the The purpose of the company shall be to engage in the following business activities. following business activities. (1) (Text omitted) (1) (Unchanged) (2) All types of information collection and provision (2) All types of information collection, processing and services that utilize telecommunication networks and provision services that utilize telecommunication electronic technologies networks and electronic technologies (3) to (22) (Text omitted) (3) to (22) (Unchanged) (23) Planning and production of advertising and ad agency (23) Planning, production, and selling of advertising and ad services agency services, and agency services for receiving applications and customer management in relation to sales promoting activities (24) to (28) (Text omitted) (24) to (28) (Unchanged) (29) Money lending, brokering and underwriting of loans, (29) Money lending, brokering and underwriting of loans, credit card handling, financial instruments business, credit card handling, financial instruments business, bank agency services and other financial services bank agency services, electronic payment agency services, financial instruments intermediary services, and other financial services (30) (Text omitted) (30) (Unchanged) (31) Investment in relation to various businesses and the (31) Investment in relation to various businesses, including businesses related to company mergers, business the following (a) and (b), and the businesses related to alliances, transfer of businesses and securities, company mergers, business alliances, and acquisition, mediation and conciliation transfer, mediation and conciliation of businesses, securities, and monetary claims (Newly established) (a) Investment and management of assets of investment limited partnership or any other investment partnership, or investment to investment limited partnership or any other investment partnership (Newly established) (b) Mediation, intermediation, and agency of concluding investment limited partnership contract, silent partnership contract, and other investment partnership contract (32) (Text omitted) (32) (Unchanged) (Newly established) (33) Advertisement of small sum short-period insurance, and agency and mediation of contract conclusion in relation to small sum short-period insurance (Newly established) (34) Virtual currency exchange business (Newly established) (35) Travel agency based on Travel Agency Act, travel agent’s representation, and arrangement of travel services (33) Management and rental operations for real estate (36) Management and rental operations for real estate

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Current Articles of Incorporation Proposed Amendments (34) Following operations commissioned by other (37) Following operations commissioned by other companies or organizations companies or organizations (a) Planning, collection, creation, publishing and (a) Planning, collection, creation, publishing and management of documents related to management management of documents related to management analysis, business planning, statistics management and analysis, business planning, statistics management and public relations public relations (b) Administer affairs related to bookkeeping, recording of (b) Administer affairs related to bookkeeping, recording of revenues and expenditures, and settling of accounts revenues and expenditures, and settling of accounts (c) Human resource, labor, benefit programs, education and (c) Human resource, labor, benefit programs, education and training services for employees training services for employees (Newly established) (d) Information system utilizing networks of internet and entrustment of planning, designing, and operating of telecommunication network (35) Management consulting for company management and (38) Management consulting for company management and subcontracting of management subcontracting of management (36) Acquisition, sales, usage licenses and other management (39) Acquisition, sales, usage licenses and other management operations for copyrights, design rights, trademark rights operations for copyrights, design rights, trademark rights and industrial property rights and industrial property rights (37) Consulting or export and import operations related to (40) Consulting, export and import operations, and resale any of the foregoing operations related to any of the foregoing (38) All businesses incidental to any of the foregoing (41) All businesses incidental to any of the foregoing

Article 3. to 43 (Text omitted) Article 3. to 43 (Unchanged)

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Proposal No. 2 Election of Eight (8) Directors

At the conclusion of this Ordinary General Meeting of Shareholders, the terms of office of all eight Directors will expire. Therefore, the Company proposes to elect eight Directors including three outside Directors. The candidates for Director are as follows:

No. Name Position and responsibility in the Company 1 Takeshi Idezawa Reelection Representative Director, President and CEO 2 Jun Masuda Reelection Director and CSMO 3 Jungho Shin Reelection Director and CWO 4 In Joon Hwang Reelection Director and CFO 5 Hae-jin Lee Reelection Chairman of the Board Reelection 6 Tadashi Kunihiro Outside Director Director Independent Officer Reelection 7 Koji Kotaka Outside Director Director Independent Officer Reelection 8 Rehito Hatoyama Outside Director Director Independent Officer Notes: 1. There are no special interest between any of the candidates and the Company. 2. Tadashi Kunihiro, Koji Kotaka and Rehito Hatoyama are candidates for outside Director. 3. The Company has set forth in Article 28, Paragraph 2 of its current Articles of Incorporation provisions to the effect that the Company may enter into an agreement with a Director (excluding executive directors, etc.) to limit his/her liability for compensation for damages arising from a failure to perform duties so that Directors can fully perform the roles expected of them. The Company has concluded limited liability agreements with Tadashi Kunihiro, Koji Kotaka and Rehito Hatoyama. The maximum amount of liability for damages, if they have acted in good faith and without gross negligence in performing their duties, shall be 10 million yen or the minimum liability amount stipulated in Article 425, Paragraph 1 of the Companies Act, whichever is higher. In the event that the reelection of Tadashi Kunihiro, Koji Kotaka and Rehito Hatoyama is approved at this Ordinary General Meeting of Shareholders, the Company plans to continue the above-mentioned limited liability agreements with them. 4. The Company has submitted notification to Tokyo Stock Exchange, Inc. that Tadashi Kunihiro, Koji Kotaka and Rehito Hatoyama have been appointed as independent officers. In the event that their reelection is approved at this Ordinary General Meeting of Shareholders, the Company plans to continue appointing them as independent officers. 5. Jungho Shin referenced above is the equivalent to Joongho Shin on the voting intruction card.

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No. 1 Takeshi Idezawa (Date of birth: June 9, 1973) Reelection Career summary and position and responsibility in the Company Apr. 2007 CEO of livedoor Co., Ltd. (currently NHN Techorus Corp.) Jan. 2012 Director and General Manager of Web Service Division of the Company Jan. 2014 Director and COO of the Company Number of the Apr. 2014 Representative Director and COO of the Company Company’s common shares owned: Apr. 2015 Representative Director, President and CEO of the Company (current position) 30,000 shares Oct. 2017 Representative Director of LINE Book Distribution Corporation (current position) Number of years in Jul. 2018 Representative Director of LINE Digital Frontier Corporation (current position) office: 7 years and 2 months Significant concurrent positions outside the Company Representative Director of LINE Book Distribution Corporation Representative Director of LINE Digital Frontier Corporation Special interest between the candidate and the Company There is no special interest between Takeshi Idezawa and the Company. Reason for election He has a track record in rehabilitating the management of former livedoor Co., Ltd. and has demonstrated strong leadership in the control of organizational systems by supervising overall management of the Company. Considering these achievements, we propose him as a candidate for the role of Director again.

No. 2 Jun Masuda (Date of birth: April 22, 1977) Reelection Career summary and position and responsibility in the Company Nov. 2007 Director and Vice President of Products and Marketing of Baidu, Inc. (currently Baidu Japan Inc.) Oct. 2008 Joined Naver Japan Corporation (currently the Company), Senior Manager of Business Strategy Department Jan. 2012 Executive Officer and Senior Manager of Business Strategy Department of the Company Apr. 2014 Senior Executive Officer and CSMO of the Company Number of the Sept. 2014 Representative Director of LINE Ventures Corporation (current position) Company’s common Dec. 2014 Representative Director of LINE MUSIC Corporation (current position) shares owned: Mar. 2015 Director and CSMO of the Company (current position) 5,000 shares Nov. 2016 Director of Yume no Machi Souzou Iinkai Co., Ltd. (current position) Number of years in Sept. 2017 Representative Director of LINE TICKET Corporation (current position) office: Oct. 2018 Representative Director of LINE Tapas Corporation (currently LINE CONOMI 4 years Corporation) (current position) Significant concurrent positions outside the Company Representative Director of LINE Ventures Corporation Representative Director of LINE MUSIC Corporation Director of Yume no Machi Souzou Iinkai Co., Ltd. Representative Director of LINE TICKET Corporation Representative Director of LINE CONOMI Corporation Special interest between the candidate and the Company There is no special interest between Jun Masuda and the Company. Reason for election Taking responsibility for the overall domestic product strategy and domestic marketing strategy in Japan, he has promoted efforts to improve the LINE brand’s value and advance speedy and innovative business development. Considering these achievements, we propose him as a candidate for the role of Director again.

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No. 3 Jungho Shin (Date of birth: February 25, 1972) Reelection Career summary and position and responsibility in the Company Feb. 1996 Joined Korea Research & Development Information Center Jul. 1999 Joined OZ Technology, Inc. Apr. 2002 Joined Neowiz Games Corporation Jun. 2005 Joined 1noon Co., Ltd. (currently NAVER Corporation) Number of the Dec. 2008 Executive Officer and General Manager of Corporate Planning Department of Company’s common 1noon Co., Ltd. (Japan) shares owned: 4,760,500 shares Jan. 2012 Director of the Company Mar. 2013 Representative Director of LINE Plus Corporation (current position) Number of years in Apr. 2014 Director and CGO of the Company office: 7 years and 2 months Apr. 2018 Director and CSO of the Company Feb. 2019 Director and CWO of the Company (current position) Significant concurrent positions outside the Company Representative Director of LINE Plus Corporation Special interest between the candidate and the Company There is no special interest between Jungho Shin and the Company. Reason for election Taking responsibility for the overall product strategy and business strategy, he has played an instigating role in the creation and implementation of innovative business plans, thereby driving the growth of the Company. Considering these achievements, we propose him as a candidate for the role of Director again.

No. 4 In Joon Hwang (Date of birth: June 16, 1965) Reelection Career summary and position and responsibility in the Company Aug. 1992 Joined Samsung Electronics Co., Ltd. Aug. 1998 Joined Credit Suisse (currently Credit Suisse AG) Jan. 2003 Joined Samsung Securities Co., Ltd. Jun. 2004 Joined Woori Finance Holdings Co., Ltd. Number of the Company’s common Mar. 2007 Joined Woori Investment & Securities Co., Ltd. shares owned: Aug. 2008 Joined NHN Corporation (currently NAVER Corporation) – shares Nov. 2008 Director and CFO of NHN Corporation

Number of years in Dec. 2008 Director of the Company office: Apr. 2015 Director and CFO of the Company (current position) 10 years and 3 months May 2017 Representative Director of LINE Ventures Corporation (current position) Significant concurrent positions outside the Company Representative Director of LINE Ventures Corporation Special interest between the candidate and the Company There is no special interest between In Joon Hwang and the Company. Reason for election He has been in charge of the management of IR and finance and accounting departments of the Company and administration departments of overseas subsidiaries, and has executed agile financial strategy. He has also contributed to the Company’s successful entry into the financial services market. Considering these achievements, we propose him as a candidate for the role of Director again.

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No. 5 Hae-jin Lee (Date of birth: June 22, 1967) Reelection Career summary and position and responsibility in the Company Feb. 1992 Joined Samsung SDS Co., Ltd. Jun. 1999 Representative Director of Naver.com Inc. (currently NAVER Corporation) Number of the Company’s common Nov. 2005 Director and Chairman of the Board of Naver.com Inc. shares owned: Mar. 2007 Director of the Company (part-time) 4,594,000 shares Jan. 2012 Chairman of the Board of the Company (part-time) (current position)

Number of years in Mar. 2018 Global Investment Officer of NAVER Corporation (current position) office: Significant concurrent positions outside the Company 12 years None Special interest between the candidate and the Company There is no special interest between Hae-jin in Lee and the Company. Reason for election As founder of the NAVER Group, he has abundant experience and broad-ranging knowledge in all aspects of company management. In the Board of Directors, he has been providing appropriate advice on all aspects of company management from his position as Chairman of the Company, while fulfilling his responsibilities as Director. We propose him as a candidate for the role of Director so that he may continue to do so.

Reelection No. 6 Tadashi Kunihiro (Date of birth: November 29, 1955) Outside Director Independent Officer Career summary and position and responsibility in the Company Apr. 1986 Registered as an attorney at law Joined Nasu & Iguchi Law Office Jan. 1994 Established Kunihiro Law Office (currently T. Kunihiro & CO., Attorneys-at- Law) (current position) Jun. 2007 Outside Director of Tokio Marine & Nichido Fire Insurance Co., Ltd. (current Number of the position) Company’s common Jun. 2012 Outside Audit & Supervisory Board Member of Mitsubishi Corporation (current shares owned: position) 676 shares Oct. 2015 Outside Director of the Company (current position)

Number of years in Jun. 2017 Outside Audit & Supervisory Board Member of OMRON Corporation (current office: position) 3 years and 5 months Significant concurrent positions outside the Company Attorney at law of T. Kunihiro & CO. Outside Director of Tokio Marine & Nichido Fire Insurance Co., Ltd. Outside Audit & Supervisory Board Member of Mitsubishi Corporation Outside Audit & Supervisory Board Member of OMRON Corporation Special interest between the candidate and the Company There is no special interest between Tadashi Kunihiro and the Company. Reason for election He has broad-ranging insight in corporate crisis management and compliance systems as a lawyer. In particular, he has been providing appropriate and valuable advice and suggestions on the establishment of crisis management processes and fulfilling an important role as outside Director. We propose him as a candidate for the role of outside Director so that he may continue to do so. Although he has not been involved in corporate management other than having served as an outside officer, we judge him suitable for the role of outside Director for the above reasons.

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Reelection No. 7 Koji Kotaka (Date of birth: May 14, 1958) Outside Director Independent Officer Career summary and position and responsibility in the Company Apr. 1987 Joined Sato and Tsuda Law Office Apr. 1987 Registered as an attorney at law Aug. 1990 Joined Goldman Sachs (Japan) Ltd. (currently Goldman Sachs Japan Co., Ltd.) Nov. 1998 Managing Director of Goldman Sachs (Japan) Ltd. Nov. 2006 Partner of Goldman Sachs Japan Co., Ltd. Dec. 2009 Joined Nishimura & Asahi Number of the Company’s common Jan. 2011 Established Koji Kotaka Law Office (current position) shares owned: Jun. 2013 Outside Director of Monex Group, Inc. 2,500 shares May 2015 Supervisory Director of Japan Senior Living Investment Corporation

Number of years in Feb. 2016 Outside Director of the Company (current position) office: Mar. 2018 Outside Director of Kenedix, Inc. (current position) 3 years and 1 month Aug. 2018 Branch Representative in Japan of Apollo Management Japan Limited (current position) Significant concurrent positions outside the Company Attorney at law of Koji Kotaka Law Office Outside Director of Kenedix, Inc. Branch Representative in Japan of Apollo Management Japan Limited Special interest between the candidate and the Company There is no special interest between Koji Kotaka and the Company. Reason for election He has expert legal knowledge as a lawyer and abundant insight of the financial sector as an investment banker. We propose him as a candidate for the role of outside Director so that he may continue to provide appropriate and valuable advice and suggestions for the Company’s decision making, based on advanced expert knowledge relating to financial and capital markets, etc., and fulfill the important role of outside Director.

Reelection No. 8 Rehito Hatoyama (Date of birth: January 12, 1974) Outside Director Independent Officer Career summary and position and responsibility in the Company Apr. 1997 Joined Mitsubishi Corporation May 2008 Joined Sanrio Company, Ltd. Jun. 2010 Director of Sanrio Company, Ltd. Number of the Apr. 2013 Managing Director of Sanrio Company, Ltd. Company’s common Mar. 2016 Outside Director of the Company (current position) shares owned: Apr. 2016 Outside Director of Pigeon Corporation (current position) 338 shares Jun. 2016 Outside Director of transcosmos inc. (current position) Number of years in Jul. 2016 Representative Director of Hatoyama Research Institute, Ltd. (current position) office: Significant concurrent positions outside the Company 3 years Representative Director of Hatoyama Research Institute, Ltd. Outside Director of Pigeon Corporation Outside Director of transcosmos inc. Special interest between the candidate and the Company There is no special interest between Rehito Hatoyama and the Company. Reason for election He has abundant insight concerning business expansion and business management overseas, mainly focused on the business regarding contents and character license. We propose him as a candidate for the role of outside Director so that he may continue to provide appropriate and valuable advice and suggestions for the Company’s decision making, from a practical viewpoint cultivated through his corporate management experience, and fulfill the important role of outside Director.

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Proposal No. 3 Election of Three (3) Corporate Auditors

At the conclusion of this Ordinary General Meeting of Shareholders, the terms of office of all three Corporate Auditors will expire. Therefore, the Company proposes to elect three Corporate Auditors. In addition, the consent of the Board of Auditors has been obtained for the submission of this proposal. The candidates for Corporate Auditor are as follows:

No. Name Position in the Company Reelection 1 Hitoshi Kurasawa Outside Corporate Auditor Full-time Corporate Auditor Independent Officer New election 2 Yoichi Namekata Outside Corporate Auditor Independent Officer New election 3 Noriyuki Uematsu Outside Corporate Auditor Independent Officer Notes: 1. There are no special interest between any of the candidates and the Company. 2. Hitoshi Kurasawa, Yoichi Namekata and Noriyuki Uematsu are candidates for outside Corporate Auditor. 3. The Company has set forth in Article 36, Paragraph 2 of its current Articles of Incorporation provisions to the effect that the Company may enter into an agreement with a Corporate Auditor to limit his/her liability for compensation for damages arising from a failure to perform duties so that Corporate Auditors can fully perform the roles expected of them. The Company has concluded a limited liability agreement with Hitoshi Kurasawa. The maximum amount of liability for damages, if he has acted in good faith and without gross negligence in performing his duties, shall be 10 million yen or the minimum liability amount stipulated in Article 425, Paragraph 1 of the Companies Act, whichever is higher. In the event that the reelection of Hitoshi Kurasawa is approved at this Ordinary General Meeting of Shareholders, the Company plans to continue the above-mentioned limited liability agreement with him. Moreover, if the election of Yoichi Namekata and Noriyuki Uematsu is approved, the Company plans to conclude similar limited liability agreements with them. 4. The Company has submitted notification to Tokyo Stock Exchange, Inc. that Hitoshi Kurasawa has been appointed as an independent officer. In the event that his reelection is approved at this Ordinary General Meeting of Shareholders, the Company plans to continue appointing him as independent officer. Moreover, Yoichi Namekata and Noriyuki Uematsu satisfy the requirements for independent officers provided under the provisions of the Tokyo Stock Exchange, therefore if their election is approved at this Ordinary General Meeting of Shareholders, the Company plans to appoint them as independent officers.

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Reelection No. 1 Hitoshi Kurasawa (Date of birth: December 12, 1950) Outside Corporate Auditor Independent Officer Career summary and position in the Company Apr. 1973 Joined Hokushin Electric Works, Ltd. May 1978 Joined PIONEER CORPORATION

Number of the Jun. 1996 Director of NKB Inc. Company’s common Feb. 2000 Corporate auditor of Gurunavi, Inc. shares owned: Jun. 2006 Executive vice president of Gurunavi, Inc. – shares Jun. 2012 Director of Hanno Golf Club Co., Ltd. Number of years in Apr. 2013 Full-time Outside Corporate Auditor of the Company (current position) office: Significant concurrent positions outside the Company 5 years and 11 months None Special interest between the candidate and the Company There is no special interest between Hitoshi Kurasawa and the Company. Reason for election We propose him as a candidate for the role of outside Corporate Auditor so that he may continue to provide monitoring, auditing and advice on management based on his long-standing experience as a corporate manager and insight relating to finance and accounting.

New election No. 2 Yoichi Namekata (Date of birth: March 21, 1969) Outside Corporate Auditor Independent Officer Career summary and position in the Company Apr. 1996 Registered as an attorney at law Joined TOKYO FLEX LAW OFFICE LPC May 1998 Joined Atsumi & Usui Law Office (currently Atsumi & Sakai) Aug. 1999 Joined Merrill Lynch Japan Securities Co., Ltd. May 2003 Expert inspector of the Inspection Bureau of the Financial Services Agency Number of the Jul. 2006 Joined NIIMURA SOGO LAW OFFICE Company’s common shares owned: Jan. 2008 Joined Tokyo Aoyama Law Office (currently Baker & McKenzie (Gaikokuho – shares Joint Enterprise) Aug. 2009 Joined Blakemore & Mitsuki Number of years in Aug. 2013 Established NAMEKATA International Law Office (current position) office: – years Jun. 2018 Outside Audit & Supervisory Board Member of Suruga Bank Ltd. (current position) Significant concurrent positions outside the Company Representative Attorney of NAMEKATA International Law Office Outside Audit & Supervisory Board Member of Suruga Bank Ltd. Special interest between the candidate and the Company There is no special interest between Yoichi Namekata and the Company. Reason for election We propose him as a candidate for the role of outside Corporate Auditor so that he may provide monitoring, auditing and advice on management based on his abundant experience and extensive knowledge as a lawyer with expertise in compliance, internal control and finance-related laws. Although he has not been involved in corporate management other than having served as an outside audit & supervisory board member, we believe he will appropriately fulfill his duties as an outside Corporate Auditor based on the above reasons.

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New election No. 3 Noriyuki Uematsu (Date of birth: June 24, 1960) Outside Corporate Auditor Independent Officer Career summary and position in the Company Mar. 1985 Joined Tohmatsu Awoki & Co. (currently Deloitte Touche Tohmatsu LLC) Oct. 1988 Registered as Certified Public Accountant Jan. 1998 Joined Deloitte Tohmatsu Consulting Co., Ltd. (currently ABeam Consulting Ltd.) Jun. 1999 Partner in charge of the manufacturing group and Kyushu Division of Deloitte Tohmatsu Consulting Co., Ltd. Aug. 2003 Joined DENTSU INC. Number of the Jul. 2008 Director of Uematsu Certified Public Accountants Office (current position) Company’s common Jun. 2011 Representative Director of SU Consultant Co. Ltd. (current position) shares owned: – shares Jan. 2015 Outside Audit & Supervisory Board Member of Kamakura Shinsho, Ltd. Apr. 2016 Outside Director and Audit and Supervisory Committee Member of Kamakura Number of years in Shinsho, Ltd. (current position) office: Jun. 2016 Outside Audit & Supervisory Board Member of Astellas Pharma Inc. – years Jun. 2018 Outside Director, Audit & Supervisory Committee Member of Astellas Pharma Inc. (current position) Significant concurrent positions outside the Company Director of Uematsu Certified Public Accountants Office Representative Director of SU Consultant Co. Ltd. Outside Director and Audit and Supervisory Committee Member of Kamakura Shinsho, Ltd. Outside Director, Audit & Supervisory Committee Member of Astellas Pharma Inc. Special interest between the candidate and the Company There is no special interest between Noriyuki Uematsu and the Company. Reason for election We propose him as a candidate for the role of outside Corporate Auditor so that he may provide monitoring, auditing and advice on management based on his abundant experience and extensive knowledge gained from his long-standing experience as a certified public accountant in accounting audits, research projects and advisory services for companies.

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Proposal No. 4 Election of One (1) Substitute Corporate Auditor

The Company proposes to elect one substitute Corporate Auditor in advance to be ready to fill a vacant position should the number of Corporate Auditors fall below the number required by laws and regulations. In addition, the consent of the Board of Corporate Auditors has been obtained for the submission of this proposal. The candidate for substitute Corporate Auditor is as follows: Masaaki Suda (Date of birth: October 18, 1972) Career summary and position in the Company Apr. 1995 Joined Chuo Audit Corporation May 1997 Registered as Certified Public Accountant Number of the Jul. 2001 Joined The Japan Research Institute, Limited Company’s common Mar. 2008 PwC Advisory Co., Ltd (currently PwC Advisory LLC) shares owned: – shares May 2016 Established Suda Certified Public Accountants Office (current position) Significant concurrent positions outside the Company Representative of Suda Certified Public Accountants Office Notes: 1. There is no special interest between Masaaki Suda and the Company. 2. Masaaki Suda is a candidate for substitute outside Corporate Auditor. 3. The Company nominates Masaaki Suda as a candidate for the role of substitute outside Corporate Auditor with the expectation that his advanced expert knowledge cultivated as a certified public accountant would be positively reflected in the Company’s audit system. Masaaki Suda has never in the past been involved in corporate management. However, the Company believes he will appropriately fulfill his duties as an outside Corporate Auditor based on the above reasons. 4. The Company has set forth in Article 36, Paragraph 2 of its current Articles of Incorporation provisions to the effect that the Company may enter into an agreement with a Corporate Auditor to limit his/her liability for compensation for damages arising from a failure to perform duties so that Corporate Auditors can fully perform the roles expected of them. If Masaaki Suda assumes the office of Corporate Auditor, the Company plans to enter into an agreement with him to limit his liability for damages provided for in Article 423, Paragraph 1 of the Companies Act pursuant to the provisions of the Articles of Incorporation of the Company. The maximum amount of liability for damages in accordance with such agreement, if he has acted in good faith and without gross negligence in performing his duties, 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.

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Proposal No. 5 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 decided to introduce a new 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 20th term (from January 1, 2019 to December 31, 2019) 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.

If Proposal No. 2 is approved and adopted as originally proposed, 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 20th 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 Black-Scholes model, upon the allotment of the warrants.

(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 day on which no trade is executed) of the month preceding the month in which the day that the - 17 -

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: 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

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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. 6 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. 5 “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 decided to introduce a new 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 20th term (from January 1, 2019 to December 31, 2019) 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.

If Proposal No. 2 is approved and adopted as originally proposed, 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 20th term.

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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) 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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Attached materials Business Report From January 1, 2018 to December 31, 2018

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, 2018, LINE MAUs* in the Group’s four key countries (Japan, Taiwan, Thailand and Indonesia) were 164.0 million, down 2.1% from the previous fiscal year-end, while MAUs in Japan increased by 5.7 million to 79 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 77%. LINE had a particularly dominant position in the Japanese market, where the DAUs/MAUs ratio was 85%. 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. From fiscal year 2018, the Group’s reportable segment has been reclassified to Core business and Strategic business. The Core business consists of businesses that contribute to the growth and revenue of the Group such as content services and advertising, while the Strategic business consists of fintech businesses such as LINE Pay, AI business, LINE Friends, and commerce businesses including LINE SHOPPING. This classification clarifies the strategy of the Group that aims for medium to long-term business growth by actively investing in the Strategic business that promises significant growth in the future, while generating steady revenue of the Core business.

Revenues in fiscal year 2018 totaled 207.2 billion yen, a new record for the Group, increasing 24.0%*** year on year. This increase in revenue was mainly driven by an increase in advertising sales due to the steady growth of display ads and account ads services. Profit from operating activities was 16.1 billion yen, a year-on-year decrease of 35.8%, due to the increases in employee expenses accompanying business expansion, development expenses relating to the initiatives for the Strategic business, and marketing expenses for content services and fintech business. As a result of the above, loss attributable to the shareholders of the Company was 3.7 billion yen whereas the previous fiscal year saw a profit of 8.1 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.

*** The Group has adopted IFRS 15 from fiscal year 2018. As the Group has used the modified retrospective method instead of the full retrospective approach upon the adoption of IFRS 15, the consolidated financial performance for fiscal year 2017 is presented under the previous standard, IAS 18, while the consolidated financial performance for fiscal year 2018 is presented under IFRS 15.

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2) Business status by segment*

Principal services: LINE Ads Platform, LINE Official Account, LINE@, Sponsored Sticker, LINE Part-time Job, etc.

- Against the backdrop of steady expansion of the internet advertising market, revenues from advertising services were 108.2 billion yen, an increase of 42.5% year on year, representing 52.2% 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 upgraded the platform to further ensure optimization of advertisement distribution systems. As a result of the continuous improvement of advertising platform functionality and an increase in advertisers, the display ads revenues grew significantly with 36.1% 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. Revenues continued to grow with 45.7% increase year on year due to an increase in the number of official accounts and LINE@ accounts in Japan and overseas.

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

- Revenues from Content, Communication and Others were 70.2 billion yen, a decrease of 4.1% year on year. - In LINE GAME, we carried out large-scale collaboration and events, and we generated the steady revenues mainly in existing titles. - 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 Insurance, LINE Smart Invest, LINE Kakeibo, LINE Friends, LINE SHOPPING, LINE Delima, LINE Clova, etc.

- In order to further promote cashless payments, LINE Pay introduced the LINE Wallet tab and launched “My Level” incentive program that yields LINE Points at the return rate according to the LINE Pay activity. In addition, an affiliation with QUICPay and increased awareness of cashless payments also helped us to achieve one million locations in Japan that accept LINE Pay’s payment by smartphone. As a result of these measures, settlement volume through LINE Pay including those in Taiwan and Thailand showed substantial growth, totaling 1,068.7 billion yen, an increase of 126.0% year on year. - Other financial business also expanded its services including the launch of LINE Insurance, LINE Smart Invest and LINE Kakeibo. - LINE Friends contributed to the growth of revenues as BT21 character goods produced by the idol group BTS gained popularity in various countries. - In March 2018, the number of Monthly Active Users of LINE SHOPPING exceeded 10 million, and the transaction volume increased substantially. The number of members of LINE Delima also exceeded 6.5 million, and the service continues to expand. - LINE Clova newly released Clova Friends mini. It also announced Clova Auto with a collaboration with TOYOTA MOTOR CORPORATION.

* The Group has adopted IFRS 15 from fiscal year 2018. As the Group has used the modified retrospective method instead of the full retrospective approach upon the adoption of IFRS 15, the consolidated financial performance for fiscal year 2017 is presented under the previous standard, IAS 18, while the consolidated financial performance for fiscal year 2018 is presented under IFRS 15. From fiscal year 2018, the Group monitors its profit and loss by segment. The profit and loss of each segment in fiscal year 2017 were prepared mainly based on the same method as in fiscal year 2018 where practicable and restated accordingly.

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3) Initiatives in 2018

Payment Revolution with LINE Pay In anticipation of the future society with cashless or walletless payments, in fiscal year 2018, we focused on increasing the number of users making payments with LINE Pay and of the locations accepting payment with LINE Pay. In March, we introduced LINE Wallet within LINE messenger application as a gateway to our financial services. LINE Wallet is composed mainly of services such as LINE Pay and LINE Points, making it possible to make P2P transfer and payments more smoothly. For users, we promoted easy P2P transfer using a smartphone and implemented various campaigns including rewarding 20% of the total amount paid with LINE Pay to user’s LINE Pay balance at the end of the year in order to increase awareness of LINE Pay and to invite more people to experience and get accustomed to the cashless payments. In June, we introduced “My Level” incentive program which increases the reward (return rate in LINE Points) as the user’s aggregate sum of payments through the service increases. And in August, we announced that, for the following one year period, an additional 3% (up to 5% combined with My Level) reward of LINE Points would be awarded when payments are made using QR code or barcode.

In addition, the number of locations accepting payment with LINE Pay increased steadily, driven by the demand from inbound tourists and increased awareness of cashless payments. Our measures such as partnering with QUICPay and launching the provision of LINE POS and LINE Pay Terminal (a terminal dedicated to code payments) helped achieve in November one million locations in Japan that accept payment by smartphone, one of our targets for 2018.

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Furthermore, we announced our initiatives such as promoting cashless payments in local communities and making our LINE Pay Scan Bill function work for the payment of taxes, which function enables users to easily make payment using their smartphone that reads the barcode printed on the invoice, by strengthening our collaboration with local governments. As a result of these measures, in addition to the increased use in Japan, global settlement volume through LINE Pay including those in Taiwan and Thailand showed substantial growth, totaling 1,068.7 billion yen, an increase of 126.0% year on year.

Expansion of financial business As a foothold for expanding our financial services other than payment service, we launched three new services in 2018. 1) LINE Insurance that enables users to easily purchase non-life insurance through the LINE messenger application whenever necessary. 2) LINE Smart Invest that enables users to readily invest in familiar themes from the LINE messenger application. 3) LINE Kakeibo that is a service for personal financial account and asset management. The number of friends registered in the official account of LINE Insurance exceeded three million in just about one week after the service launched in October 2018. LINE Kakeibo also got off to a strong start, with the number of registered users exceeding two million in January 2019, two months after the service started. In March 2018, we announced that a joint venture company would be established with Nomura Holdings, Inc. to provide online securities services. In November 2018, we announced the establishment of a preparatory company through joint investment of LINE Financial Corporation and Mizuho Bank, Ltd. in preparation for the commencement of discussions on making a new bank, as well as a credit scoring service LINE Score and a loan service LINE Pocket Money.

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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) 19th term 16th term 17th term 18th term (Current fiscal year) Revenues 120,406 140,704 167,147 207,182 Profit (loss) before income taxes (530) 17,990 18,145 3,354 from continuing operations Profit (loss) attributable to the (7,582) 6,763 8,078 (3,718) shareholders of the Company Basic earnings (loss) per share (43.33) 34.84 36.56 (15.62) (Yen) Total assets 122,159 256,089 303,439 486,587 Total equity 17,533 161,023 189,977 208,514 Note: The above performance indicators are based on the consolidated financial statements prepared under International Financial Reporting Standards (IFRS).

(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 will develop 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 preparing the organizational structures to achieve the same, while remaining aware that the further strengthening of corporate governance, in accordance with business expansion, is an important issue. In relation to the concrete realization of the above, 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. To make this a reality, we aim to serve LINE as a gateway to people’s lives, where it provides content such as games, news, music and video, and adds services that further enrich the lives of users such as payments and online shopping, while functioning as a necessary communication tool in daily life. 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 bolster the LINE platform and make it possible to offer targeted bidirectional marketing solutions to advertisers, leading in turn to increased revenue opportunities for the Group. 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. The Group is actively introducing new services in order to secure stable and sustained 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 fintech, commerce 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 the LINE mobile messaging application to the public in Japan, followed by launches in overseas countries. We believe LINE is the leading mobile messaging application in - 28 -

Japan, Thailand, Taiwan and 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. The Group aims to expand the user base and enhance the user engagement for not only messaging application but also other services, by leveraging its experience in customizing content to suit the needs and tastes of each region and utilizing the marketing know-how it has accumulated thus far. Going forward we will maintain a particular focus on markets in Asia and elsewhere where LINE is highly recognized.

4) Competition In the internet and mobile application market in which the Company operates, competitors are strengthening their initiatives to entice and secure users, and competition is expected to increase sharply going forward. 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 applications 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. The expansion of the mobile application market as a whole will be greatly beneficial to the Group, and, therefore, 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 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. In this competitive environment, we compete for qualified personnel with other companies particularly in the state-of-the-art technology industry and fast- growing internet businesses. 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 Because the Group deploys its profit-generating services over the internet, it has recognized that securing the safety and stability of these systems is an important management issue. Until now, the Group has developed and deployed programs to protect users’ privacy, promote a safe online

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environment, and guarantee the safety of user data, so as to win and retain trust from users. In regard to security, 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 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 closed nature of the service as a communication community, 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.

(4) Capital investments Total capital investments by the Group in fiscal year 2018 were 18,805 million yen. Main investments included the purchase of servers and networking equipment of 12,089 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 Financing by means of issuing corporate bonds In the current fiscal year, the Company procured 149,978 million yen in total through the issuance of convertible bonds with warrants, as follows: Total amount of Classification Name of the issued bond Date of issuance Redemption date issuance Public Euro-yen zero coupon convertible September 20, 2018 ¥37,494.5 million September 20, 2023 offering bonds due 2023 with warrants Public Euro-yen zero coupon convertible September 20, 2018 ¥37,494.5 million September 19, 2025 offering bonds due 2025 with warrants Third-party Euro-yen zero coupon convertible September 20, 2018 ¥37,494.5 million September 20, 2023 allotment bonds due 2023 with warrants Third-party Euro-yen zero coupon convertible September 20, 2018 ¥37,494.5 million September 19, 2025 allotment bonds due 2025 with warrants

(6) Important parent company and subsidiaries 1) Parent company The Company’s parent company NAVER Corporation holds 72.62% of the Company’s voting rights.

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2) Important subsidiaries Share capital or Name Voting rights ratio Principal business investments in capital Overseas operations and LINE Plus Corporation KRW20.969 billion 100% marketing related to LINE services LINE Financial Planning and marketing of JPY29.5 billion 100% Corporation fintech business Stock ownership and control of financial LINE Financial Asia USD0.23 billion 100% business related Limited subsidiaries in Southeast Asian countries Notes: 1. In January 2018, the Company established LINE Financial Corporation. 2. In September 2018, the Company established LINE Financial Asia Limited.

3) Important organizational restructuring, etc. LINE Mobile Corporation, the Company’s subsidiary, issued new shares to SoftBank Corp. through a third party allotment in April 2018. As a result, the Group’s ownership of LINE Mobile Corporation has decreased from 100.0% to 49.0%, resulting in LINE Mobile Corporation, previously a subsidiary of the Group, to be accounted for as an associate under the equity method. NextFloor Corporation absorbed and merged with LINE Games Corporation and NextFloor Basement Lab Corporation, both of which were subsidiaries of the Company, and simultaneously changed its name to LINE Games Corporation in August 2018. As a result of this, the Company’s ownership of LINE Games Corporation became 73.5% where the denominator excluded treasury shares of LINE Games Corporation. Moreover, the subsidiary issued new shares to Lungo Entertainment Ltd. through a third-party allotment in November 2018. As a result, the Group’s ownership of LINE Games Corporation has decreased from 73.5% to 49.5% where the denominator excluded treasury shares of LINE Games Corporation, resulting in LINE Games Corporation, previously a subsidiary of the Group, to be accounted for as an associate under the equity method.

(7) Major place of business (As of December 31, 2018) 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 Shinjuku-ku, Tokyo LINE Ventures Corporation Shinjuku-ku, Tokyo M.T. Burn Inc. Minato-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 FIVE Inc. Shibuya-ku, Tokyo LINE Part-Time Job, Ltd. Shinjuku-ku, Tokyo LINE Financial Corporation Shinjuku-ku, Tokyo LVC 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 Limited Corporation (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, 2018) 1) Employees of the Group Changes from the previous fiscal Business segments Number of employees year-end Core business 3,914 [266] + 520 [- 37] Strategic business 1,575 [87] + 657 [+13] Corporate (common) 995 [44] + 207 [- 1] Total 6,484 [397] + 1,384 [- 25] Notes: 1. Since there has been a change in the business segments in the current fiscal year, the changes from the previous fiscal year-end are calculated after reclassifying the numbers for the previous fiscal year into those in accordance with the new business segments. 2. The Corporate (common) represents the number of employees in the administration departments and the engineering departments that cannot be divided into segments. 3. 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. 4. 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). 5. The number of employees increased by 1,384 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 1,903 [90] + 443 [- 2] 34 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 443 during the current fiscal year, reflecting mainly mid-career hires associated with expanded business operations.

(9) Major lenders (As of December 31, 2018) (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 No items to report.

2. Share information (As of December 31, 2018) (1) Total number of authorized shares Common share: 690,000,000 shares

(2) Total number of issued shares Common share: 240,524,642 shares Notes: 1. On April 25, 2018, the Company increased its total number of issued and outstanding shares by 1,172,332 shares by means of third-party allotment carried out in conjunction with the additional contribution to an Employee Stock Ownership Plan (J-ESOP), as resolved by the meeting of the Board of Directors on April 9, 2018. 2. The total number of issued shares has increased by 855,500 shares as a result of warrants exercised during the current fiscal year.

(3) Number of shareholders 32,413

(4) Top 10 shareholders Name Number of shares held Shareholding ratio NAVER Corporation 174,692,000 shares 72.62% GOLDMAN SACHS INTERNATIONAL 7,839,912 shares 3.25% MOXLEY & CO LLC 6,943,340 shares 2.88% MSIP CLIENT SECURITIES 4,823,136 shares 2.00% Jungho Shin 4,760,500 shares 1.97% KSD - MIRAE ASSET DAEWOO (CLIENT) 4,612,600 shares 1.91% MLI FOR CLIENT GENERAL OMNI NON 3,523,100 shares 1.46% COLLATERAL NON TREATY – PB Japan Trustee Services Bank, Ltd. (Trust Account) 2,778,300 shares 1.15% Trust & Custody Services Bank, Ltd. (Trust Account E) 1,978,822 shares 0.82% Joonho Lee 1,638,000 shares 0.68% Notes: 1. “Shareholding ratio” has been rounded down to units of one hundredth of a percent. 2. The shareholding ratio has been calculated by deducting 953 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 4th Warrants 16th Warrants 20th Warrants Number of warrants 116 111 12,621 Number of holders 1 2 4 (Directors of the Company) Class and number of shares Common shares of the Common shares of the Common shares of the to be issued upon exercise Company Company Company of warrants (per warrant) 500 shares 500 shares 100 shares Amount of payments (per Gratis Gratis ¥154,500 warrant) Exercise value ¥344 ¥1,320 ¥4,206 December 17, 2015 to February 4, 2017 to July 18, 2018 to Exercise period December 16, 2023 February 3, 2025 July 18, 2027 Notes: 1. The above-mentioned warrants are included in the holdings of neither the Company’s outside Directors nor its Corporate Auditors. 2. Of the above mentioned warrants, the principle conditions for exercise of the 4th warrants and 16th warrants are as follows; 1) In cases where a warrant holder dies, their heirs cannot exercise those warrants. However, this shall not apply if the Board of Directors approves. 2) Warrant holders 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 are as follows; 1) In cases where a warrant holder dies, their heirs cannot exercise those warrants. However, this shall not apply if the Company’s Board of Directors approves. 2) 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. 3) Each warrant may not be partially exercised.

(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 No items to report.

(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 ¥71,460 million ¥70,672 million warrants

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4. Officers of the Company (1) Directors and Corporate Auditors (As of December 31, 2018) 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 of LINE MUSIC Corporation Representative Director of LINE Ventures Corporation Representative Director of LINE TICKET Corporation Jun Masuda Director and CSMO Representative Director of LINE Tapas Corporation (currently LINE CONOMI Corporation) Director of Yume no Machi Souzou Iinkai Co., Ltd. Jungho Shin Director and CSO Representative Director of LINE Plus Corporation 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 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 Specially Appointed Professor, Faculty of Law, Musashino Takashi Kanai Corporate Auditor University Attorney at law of Frantech Law Office Corporate Officer, Sojitz Corporation Naoki Watanabe Corporate Auditor Attorney at law Notes: 1. Directors Tadashi Kunihiro, Koji Kotaka and Rehito Hatoyama are outside Directors. 2. Corporate Auditors Hitoshi Kurasawa, Takashi Kanai and Naoki Watanabe are outside Corporate Auditors. 3. 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. 4. Jin Hee Kim retired from the position of Corporate Auditor on September 1, 2018. The reasons of his retirement and significant concurrent positions are as follows. Reasons of retirement Significant concurrent positions outside the Company Resignation Representative Director of NAVER I&S Corporation

5. Naoki Watanabe, a substitute Corporate Auditor, assumed the post of Corporate Auditor effective on September 1, 2018, in order to fill the vacancy created by the resignation of Jin Hee Kim from the post of Corporate Auditor, so as not to cause the number of Corporate Auditors fall below the number required by law. Naoki Watanabe had been appointed as a substitute Corporate Auditor at the 17th Ordinary General Meeting of Shareholders held on March 30, 2017.

(2) Changes to Directors during the current fiscal year No items to report.

(3) Summary of details of limited liability agreement The Company has entered into an agreement with Tadashi Kunihiro, Koji Kotaka, Rehito Hatoyama, Hitoshi Kurasawa, Takashi Kanai and Naoki Watanabe to limit their liability for damages provided

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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 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 1,216 million yen (including 45 million yen for three outside Directors) Four Corporate Auditors 16 million yen (including 13 million yen for three 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: 780 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). 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 one Corporate Auditor who retired as of September 1, 2018.

(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 Director Tadashi Kunihiro attended all 17 meetings of the Board of Directors held during the current fiscal year. He provided appropriate and valuable advice and suggestions in meetings of the Board of Directors from his professional perspective as a lawyer, primarily on the topics of corporate crisis management, and organization of the compliance system. Director Koji Kotaka attended 15 of the 17 meetings of the Board of Directors held during the current fiscal year. He provided appropriate and valuable advice and suggestions in meetings of the Board of Directors based on his abundant insight relating to the financial and capital markets as a lawyer and investment banker. Director Rehito Hatoyama attended all 17 meetings of the Board of Directors held during the current fiscal year. He provided appropriate and valuable advice and suggestions in meetings of the Board of Directors based on his abundant insight relating to business development 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. Corporate Auditor Hitoshi Kurasawa attended all 17 meetings of the Board of Directors held during the current fiscal year and all 13 meetings of the Board of Corporate Auditors. He provided appropriate and valuable advice and suggestions in meetings of the Board of Directors and meetings of the Board of Corporate Auditors based on his long-standing experience as a corporate manager and extensive knowledge. Corporate Auditor Takashi Kanai attended 16 of the 17 meetings of the Board of Directors held during the current fiscal year and all 13 meetings of the Board of Corporate Auditors. He provided appropriate and valuable advice and suggestions in meetings of the Board of Directors and meetings of the Board of Corporate Auditors from his professional perspective as a lawyer based on his abundant insight gained primarily from his long-standing experience of legal support in venture companies. Corporate Auditor Naoki Watanabe attended all 5 meetings of the Board of Directors held during the current fiscal year and all 4 meetings of the Board of Corporate Auditors after he assumed the position of Corporate Auditor. He provided appropriate and valuable advice and suggestions in meetings of the Board of Directors and meetings of the Board of Corporate Auditors from his

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professional perspective as a lawyer based on his abundant insight gained primarily from his long- standing experience of legal support in business companies in such fields as M&A and joint ventures.

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 398 2) Total amount of money and other financial benefits to be paid by the 473 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 preparation of comfort letters and advisory services regarding 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.

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6. System and Policies of the Company (1) Systems to ensure that the execution of duties of Directors complies with laws and regulations and the Articles of Incorporation and other systems to ensure appropriate business operations The Company determines basic policy on developing internal control systems by resolution of the Board of Directors. An overview of this is as follows. 1) Systems to ensure that the execution of duties of Directors and employees complies with laws and regulations and the Articles of Incorporation i. To ensure that Directors and employees of the corporate group consisting of the Company and its subsidiaries (hereinafter referred to as the “Group”) adhere to laws and regulations and the Articles of Incorporation, and execute their duties on the basis of sound social norms, we have drawn up the LINE Group Code of Conduct and accordingly adopt systems for fully ensuring that our adherence to laws and regulations acts as the basis of all corporate activities performed by the Group’s Directors and employees. ii. We have established the Internal Audit Department to act as an organizational unit directly under control of the Representative Director, and accordingly adopt systems for carrying out internal audits of the Group. iii. We establish whistleblowing systems that enable anonymous reporting by employees who have directly noticed conducts which they suspect may involve a breach of laws or regulations. iv. We have established a dedicated office for promoting compliance, and we develop and promote compliance systems. v. We do not engage in any relations whatsoever with anti-social forces that pose a threat to the order and safety of society. We also address matters pertaining to anti-social forces on an organization-wide basis, and resolutely handle such matters in conjunction with external professional organizations.

2) Systems for the storage and management of information relating to the execution of duties of Directors We establish Board of Directors Regulations, Document Retention Policy and Information Security Policy, and accordingly adopt systems for recording and storing documents and electromagnetic records containing information pertaining to the execution of duties by Directors.

3) Rules and other systems for management of risk of loss i. We establish rules on risk management and adopt systems for making prompt decisions with respect to the risk management. ii. We establish a meeting body led by the Representative Director and President for sharing information on risks, reviewing countermeasures and performing other such tasks, and adopt systems for the execution of these activities. iii. We appoint a Chief Information Security Officer (CISO) and a Chief Privacy Officer (CPO), organize bodies for holding meetings headed by the respective officers, and accordingly adopt systems for enhancing safekeeping and control of our information assets and appropriately managing risks related to those information assets. iv. We establish Crisis Management Policy and accordingly adopt systems for systematically managing risks on the basis of instructions provided by the Representative Director and Directors in charge, in cases involving the emergence or potential emergence of risks affecting business continuity. Moreover, the Internal Audit Department conducts audits on the basis of Internal Audit Policy in order to determine the effectiveness and adequacy of respective risk management procedures, and accordingly adopts systems for reporting audit outcomes to the Representative Director and Corporate Auditors, depending on the importance of the matter involved.

4) Systems to ensure the efficient execution of duties of Directors We adopt systems whereby the Board of Directors makes important managerial decisions and executive Directors execute business operations. We employ executive officer systems and accordingly separate the tasks of management oversight and business execution by delegating a substantial portion of business execution to executive officers, and otherwise work to streamline decision-making and business execution. We appropriately divide job authority and business operations on the basis of in-house regulations with respect to executing individual aspects of our

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business, and accordingly take steps to achieve greater specialization and improvement of business operations.

5) Systems to ensure the appropriateness of operations in the Group i. Systems for the reporting of items related to the execution of the duties of directors, etc. of subsidiaries to the Company We establish Affiliate Management Policy and accordingly adopt systems for ensuring timely and appropriate reporting to the Company in relation to matters pertaining to the execution of duties by directors of our subsidiaries, by having our subsidiaries report important matters and conduct preliminary discussions. ii. Rules and other systems for management of risk of loss at subsidiaries We adopt systems for controlling risks of loss incurred by subsidiaries by accordingly exchanging opinions with managers in charge of finance, legal affairs, security and other such operations of our subsidiaries whenever necessary, and furthermore striving to gain an understanding of risk management issues and other challenges from the viewpoint of accurate financial reporting. iii. Systems to ensure the efficient execution of duties of directors, etc. of subsidiaries To ensure a prosperous coexistence among Group entities, the Company adopts systems for ensuring that directors of subsidiaries effectively execute their duties. To that end, we cooperate closely with our subsidiaries and develop systems to ensure that the appropriateness of respective business operations is ensured autonomously. iv. Systems to ensure that the execution of duties of directors, etc. and employees of subsidiaries complies with laws and regulations and the Articles of Incorporation We have drawn up the LINE Group Code of Conduct which is applied across the overall Group, and accordingly work to cultivate and build compliance awareness by regularly providing education and training opportunities. We have established a meeting body for promoting and monitoring the overseas compliance activities of the Group and adopted a system for the execution of these activities. We promote use of our whistleblowing reporting desk which has been established to make it possible for us to swiftly gather information in instances involving suspected compliance violations involving our subsidiaries. v. Systems to prevent circumstances that would undermine shareholder interests due to transactions involving related parties and conflicts of interest We have established the Advisory Committee comprised solely of outside Directors, and accordingly adopt systems for ensuring that the Committee engages in preliminary deliberations regarding important matters in terms of those transactions involving related parties and conflicts of interest, and for ensuring that outcomes of such deliberations are respected by the Board of Directors.

6) Matters pertaining to employees who are assigned to assist Corporate Auditors in performing their duties i. We promptly assign employees to the task of assisting Corporate Auditors upon request in that regard. ii. With respect to transfer, evaluation, disciplinary action and other personnel-related matters involving employees set forth in the preceding paragraph, we require prior agreement from Corporate Auditors and otherwise strive to ensure that such employees maintain independence from Directors and receive effective instructions from Corporate Auditors.

7) Systems for reporting to the Company’s Corporate Auditors i. Systems for reporting by the Company’s Directors and employees to Corporate Auditors, and other systems for reporting to Corporate Auditors We adopt systems for promptly reporting matters to the Corporate Auditors, in cases where any individual becomes aware of actions of Directors or employees that may be in violation of laws and regulations, the Articles of Incorporation or the LINE Group Code of Conduct, or actions that could potentially cause the Group to incur substantial losses, or incidents that could otherwise have a substantial adverse effect on the Group (hereinafter collectively referred to as “Unwarranted Conduct, etc.”).

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Moreover, we adopt systems providing for Corporate Auditors to attend meetings of the Board of Directors and full-time Corporate Auditors to attend Management Meetings, reporting results of internal audits to full-time Corporate Auditors by the Internal Audit Department, and otherwise effective reporting to Corporate Auditors by means of discussion between Directors and Corporate Auditors. ii. Systems for reporting to the Company’s Corporate Auditors by directors, corporate auditors and employees of subsidiaries, or by individuals reported to by directors, corporate auditors or employees of subsidiaries We adopt systems for promptly reporting matters involving Unwarranted Conduct, etc. to Corporate Auditors, by directors, corporate auditors or employees of subsidiaries (hereinafter referred to as “Subsidiary Directors, etc.”) where Unwarranted Conduct, etc. has been detected, or by Directors or employees of the Company who have received reports from Subsidiary Directors, etc. regarding Unwarranted Conduct, etc. iii. We adopt systems prohibiting unfavorable treatment of whistleblowers on the grounds of having reported as described in the preceding two paragraphs.

8) Items related to the policy for the handling of expenses or financial obligations by Corporate Auditors of the Company in the execution of their duties We adopt systems whereby Directors ensure budgets are secured as necessary and sufficient to guarantee effectiveness of audits with respect to expenses and obligations incurred in relation to execution of duties of Corporate Auditors.

9) Other systems to ensure the audits of Corporate Auditors are implemented effectively We adopt systems whereby the Board of Corporate Auditors carries out meetings to exchange opinions respectively with the Representative Director, Directors and the auditing company that acts as the Accounting Auditor, and whereby the full-time Corporate Auditors work in conjunction with the Internal Audit Department in efficiently and effectively performing audits with respect to tasks such as audit item selection and implementation when investigating the status of the Company’s business operations and assets, and when taking on other audit tasks.

(2) Summary of operational status of systems to ensure appropriate business operations The Company endeavors to maintain and appropriately operate its internal controls systems, on the basis of its basic policy on developing internal control systems. A summary of the operational status for the fiscal year under review is as follows. 1) Initiatives regarding compliance with laws and regulations, etc. by Directors and employees i. We have established the LINE Group Code of Conduct setting forth legal and ethical standards which are to be observed by officers and employees of the Group. It is posted in multiple languages to our in-house corporate intranet and elsewhere, and we ensure that individuals can access it when necessary. Moreover, we obtain written pledges from employees upon entering the Company regarding their compliance with LINE Employment Regulations and other internal corporate regulations, and with the LINE Group Code of Conduct. In so doing, we strive to ensure widespread familiarity with such matters and full commitment in that regard. After employees enter the Company, we conduct training sessions pertaining to the LINE Group Code of Conduct as well as various laws and regulations, and also carry out surveys on awareness of the LINE Group Code of Conduct. In so doing, we are able to visually assess the extent to which such matters have taken hold, and further promote heightened awareness in that regard. ii. To ensure that business operations are carried out appropriately, we have established Whistleblowing Policy and developed whistleblowing systems which act as means for employees to furnish information regarding suspect behavior with respect to laws and regulations, and our internal corporate regulations. We stipulate prohibitions against treating whistleblowers unfavorably in our Whistleblowing Policy, and establish whistleblowing reporting desk in law firms external to the Company. Although we take necessary corrective action in the event that we find any indications of illegality or unworthy behavior based on results of investigations into whistleblowing reports, in such instances, we do not allow persons who have conflicting interests to become involved in handling cases pertaining to whistleblowing, and when conducting investigations we also give due consideration to the

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matter of using means of investigation geared to ensuring that whistleblowers maintain anonymity in order to safeguard their confidentiality. iii. We have drawn up “Prevention of Influence by Anti-Social Forces Policy,” stipulating provisions regarding matters such as rejecting ties with crime syndicates and other such entities, and cooperating with outside organizations such as law enforcement and attorneys with respect to rejecting ties with such entities. On the basis of such policy, we confirm whether our business counterparties are involved with anti-social forces in any way, and we establish provisions stipulating rejection of ties with anti- social forces and other such wording within our written contracts. Moreover, we strive to increase the effectiveness of measures for rejecting ties with crime syndicates and other such entities by disseminating information necessary to relevant employees, through means that include holding in-house training sessions, individual meetings and delivering emails regarding the purpose and details of measures for rejecting such ties, as well as regarding countermeasures to be taken under specific scenarios.

2) Initiatives regarding risk management i. At the Company, matters deemed as involving Group-wide risk exposure or high levels of risk are reported to the Board of Directors in a timely manner. ii. The Internal Audit Department, directly under the control of the President, conducts audits based on its audit plans, and reports to the President, the full-time Corporate Auditors and heads of departments subject to audit, to the extent necessary, by submitting audit reports containing audit results. If a certain action is required, the Internal Audit Department sends, along with the audit report, a written request for corrective measures to the department subject to audit, and instructs the department to submit policies and plans regarding countermeasures and actions, and a report on corrective measures aggregating progress made in implementing the aforementioned policies and plans, thereby promoting improvements in business operations and management efficiency. Internal audits for subsidiaries are jointly conducted by the Internal Audit Department of the Company and the personnel in charge of internal audit of each subsidiary, who fulfill their respective roles and responsibilities. Even when such audit is conducted by the internal audit department of the subsidiary, the Internal Audit Department of the Company may directly conduct its audit, if necessary, ensuring the good quality of the audit. iii. Regularly scheduled meetings headed by the CPO/CISO are held to consolidate views of those in relevant departments of the Company regarding the Group’s information assets and protection of the users’ privacy. We also strive to promote unified measures and also to maintain and improve the LINE brand.

3) Initiatives regarding the efficiency and appropriateness of performance of duties by Directors i. Meetings of the Board of Directors are held once per month generally, and otherwise held on a flexible basis as necessary. As the Company’s highest management decision-making body, the Board of Directors resolves matters stipulated by laws and regulations as well as in the Articles of Incorporation, resolves significant policy matters, and oversees progress made in business execution. The Board of Directors Secretariat prepares Board of Directors meeting minutes each time such meetings are held, in accordance with the Board of Directors Regulations, and those documents are stored and managed on the basis of internal corporate regulations. ii. The Company holds Management Meetings whenever appropriate, attended by the Representative Director and President, CFO, CSO, CSMO, CPO/CISO, executive officer in charge of finance and accounting, executive officer in charge of human resources, executive officer in charge of legal affairs, executive officer in charge of internal audit, and full-time Corporate Auditors. The Management Meeting conducts preliminary deliberations on agenda items for meetings of the Board of Directors. It also engages in discussing matters such as progress made in such business execution on the basis of strategies and policies determined at meetings of the Board of Directors, and making decisions in that regard. Moreover, Investment Strategy Meetings on matters of the Company’s investment are held whenever appropriate, attended by the Representative Director and President, CFO, CSO, and CSMO.

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4) Initiatives to ensure the effectiveness of audits by the Corporate Auditors i. The full-time Corporate Auditors attend meetings of the Board of Directors and the Management Meetings to assess the status of business execution. Moreover, in striving to share information, an audit report is submitted to the full-time Corporate Auditors, containing results of audits conducted on the basis of audit plans of the Internal Audit Department, as stated in 2- 2), above. ii. Audits by Corporate Auditors are performed on the basis of details stipulated in annual audit plans of the Corporate Auditors, while meetings of the Board of Corporate Auditors are generally held once per month in order to share information. Audits by Corporate Auditors entail initiatives that include exchanging opinions with the Representative Director and President, attending important meetings, viewing important documents, investigating important assets, conducting interviews at operating divisions, and investigating subsidiaries. They also involve efforts to enhance the effectiveness and efficiency of audits, in coordination with the Internal Audit Department and the Accounting Auditor. iii. The Board of Corporate Auditors has been given direct control over a dedicated corporate audit staff, which has been made separate from organizational units involved in business execution. The corporate audit staff members have been supporting the Corporate Auditors in performing their duties, working in conjunction with the Internal Audit Department. Moreover, matters involving transfers and personnel evaluations of corporate audit staff members are decided upon gaining consent of the full-time Corporate Auditors. iv. We have secured budgets to cover expenses incurred by Corporate Auditors in performing their duties, as necessary to ensure effectiveness of audits.

5) Initiatives to ensure the appropriateness of operations of the Group i. We clarify standards of management relating to the Company’s affiliated companies by establishing the Affiliate Management Policy, and respective departments related to the Company receive reports regarding certain matters relating to business execution of Group companies on the basis of such policy. Moreover, we develop systems for gaining approval from the Representative Director, the Management Meetings, Investment Strategy Meetings or the Board of Directors, depending on the importance of any given matter, with respect to business execution of Group companies and the exercise of voting rights in relation to Group companies. ii. Each fiscal year, the Internal Control Team draws up the “Basic Plan regarding Evaluation of Internal Controls on the Financial Reporting” on internal controls pertaining to the financial statements, and it gains approval from the Board of Directors. The Internal Controls Team evaluates the Group’s internal controls on the basis of that plan, and issues instructions for improvements if material deficiencies are detected. iii. From the perspective of protecting minority shareholders, we have established the Advisory Committee comprised solely of outside Directors. The Advisory Committee conducts deliberations and review that includes important matters in terms of related-party transactions including those with parent company NAVER Corporation and transactions involving conflicts of interest, the operational status of the Board of Directors, and policies on protecting minority shareholders. The Board of Directors respects the opinions of the Advisory Committee.

7. Transactions with the parent company, etc. In September 2018, the Company has 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 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. 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

- 42 - 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. As such, 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, 2018) (In millions of yen) Item Amount Item Amount (Assets) (Liabilities) Current assets 325,514 Current liabilities 123,226 Cash and cash equivalents 256,978 Trade and other payables 34,985 Trade and other receivables 37,644 Other financial liabilities, current 36,726 Other financial assets, current 15,915 Accrued expenses 18,405 Contract assets 339 Income tax payables 4,855 Inventories 4,887 Contract liabilities 24,637 Other current assets 9,751 Provisions, current 2,581 Non-current assets 161,073 Other current liabilities 1,037 Property and equipment 24,726 Non-current liabilities 154,847 Goodwill 17,095 Corporate bonds 142,132 Other financial liabilities, Other intangible assets 5,298 527 non-current Investments in associates and 53,921 Deferred tax liabilities 503 joint ventures Other financial assets, non-current 42,287 Provisions, non-current 3,309 Deferred tax assets 17,107 Post-employment benefits 6,943 Other non-current assets 639 Other non-current liabilities 1,433 Total liabilities 278,073 (Shareholders’ equity) Equity attributable to the 198,916 shareholders of the Company Share capital 96,064 Share premium 118,626 Treasury shares (8,205) Accumulated deficit (5,556) Accumulated other (2,013) comprehensive income Non-controlling interests 9,598 Total shareholders’ equity 208,514 Total liabilities and Total assets 486,587 486,587 shareholders’ equity Note: Amounts are rounded to the nearest million.

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Consolidated Statement of Profit or Loss (From January 1, 2018 to December 31, 2018) (In millions of yen) Item Amount Revenues and other operating income: 235,281 Revenues 207,182 Other operating income 28,099 Operating expenses (219,171) Profit from operating activities 16,110 Finance income 413 Finance costs (519) Share of loss of associates and joint ventures (11,148) Loss on foreign currency transactions, net (902) Other non-operating income 869 Other non-operating expenses (1,469) Profit before tax from continuing operations 3,354 Income tax expenses (9,522) Loss for the year from continuing operations (6,168) Profit from discontinued operations, net of tax 376 Loss for the year (5,792) Attributable to: The shareholders of the Company (3,718) Non-controlling interests (2,074) Note: Amounts are rounded to the nearest million.

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Non-consolidated Balance Sheets (As of December 31, 2018) (In millions of yen) Item Amount Item Amount Assets Liabilities Current assets 195,265 Current liabilities 91,861 Cash and deposits 140,564 Accounts payable - trade 1,796 Accounts receivable - trade 25,414 Short-term loans payable 23,000 Securities 2,952 Accounts payable - other 25,718 Merchandise 165 Accrued expenses 13,026 Prepaid expenses 5,637 Income taxes payable 2,352 Deferred tax assets 7,324 Advances received 11,061 Other 13,470 Deposits received 2,499 Allowance for doubtful accounts (264) Unearned revenue 8,969 Non-current assets 230,775 Provision for LINE Points 2,184 Property and equipment 18,300 Other provision 546 Buildings 3,954 Other 705 Tools, furniture and fixtures 14,345 Non-current liabilities 151,121 Convertible bonds with stock Intangible assets 312 148,060 acquisition rights Goodwill 189 Other provision 444 Software 96 Asset retirement obligations 2,164 Other 27 Other 452 Investments and other assets 212,162 Total liabilities 242,983 Investment securities 23,029 Net assets Shares of subsidiaries and 156,919 Shareholders’ equity 178,107 associates Investments in other securities of 14,294 Capital stock 96,063 subsidiaries and associates Long-term loans receivable 4,036 Capital surplus 87,053 Long-term prepaid expenses 127 Legal capital surplus 86,128 Deferred tax assets 9,926 Other capital surplus 924 Other 6,924 Retained earnings 3,195 Allowance for doubtful accounts (3,095) Other retained earnings 3,195 Retained earnings brought 3,195 forward Treasury shares (8,205) Valuation and translation 113 adjustments Valuation difference on 113 investment securities Subscription rights to shares 4,836 Total net assets 183,057 Total assets 426,041 Total liabilities and net assets 426,041 Note: Amounts are rounded down to the nearest million.

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Non-consolidated Statements of Income (From January 1, 2018 to December 31, 2018) (In millions of yen) Item Amount Net sales 125,929 Cost of sales 75,446 Gross profit 50,482 Selling, general and administrative expenses 36,634 Operating income 13,848 Non-operating income Interest income 215 Other 1,125 1,341 Non-operating expenses Interest expenses 16 Other 1,015 1,031 Ordinary income 14,157 Extraordinary income Gain on sales of non-current assets 6 Gain on sales of investment securities 299 Reversal of allowance for doubtful accounts for subsidiaries and 252 associates Other 62 620 Extraordinary losses Loss on valuation of shares of subsidiaries and associates 1,176 Loss on valuation of investment securities 203 Provision of allowance for doubtful accounts for subsidiaries and 1,591 2,971 associates Profit before income taxes 11,807 Income taxes - current 5,218 Income taxes - deferred (1,144) 4,073 Profit 7,733 Note: Amounts are rounded down to the nearest million.

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Independent Auditors’ Audit Report

February 25, 2019

To the Board of Directors of LINE Corporation PricewaterhouseCoopers Aarata LLC Designated Limited Liability Partner, Certified Public Accountant: Kentaro Iwao (Seal) Designated Limited Liability Partner, Certified Public Accountant: Yoshihisa Chiyoda (Seal) Designated Limited Liability Partner, Certified Public Accountant: Nobuhiro Nasu (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, 2018 through December 31, 2018.

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. - 48 -

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, 2019

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 19th business term from January 1, 2018 through December 31, 2018.

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 - 50 - 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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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: improving communication and working with regional communities.

Working with Regional Communities

Helping people deal with natural disasters The LINE messaging application was originally developed in response to the Great East Japan Earthquake occurred in March 2011. That calamity demonstrated the need for a global communication tool that could enable people to connect with family members, friends, partners and other loved ones at any time. The importance of that initiative was reaffirmed again in 2018, when LINE was used extensively during the numerous natural disasters that struck Japan throughout the year as a means to communicate in affected areas and send messages of support to the victims.

LINE used for disaster drills in Kumamoto City In an effort to help the area recover from an earthquake, the Company concluded an agreement with Kumamoto city in 2017, and now disaster drills utilizing the LINE messaging application are carried out annually.

Collaborative project carried out with National Research Institute for Earth Science and Disaster Resilience (NIED) Aiming to better equip communities with disaster response capabilities, the Company concluded a collaborative partnership agreement with NIED in September 2018. The project, which has also gained assistance from the Universal Communication Research Institute, a part of National Institute of Information and Communications Technology (NICT), mainly involves the development of a system that makes use of LINE accounts and AI chatbot technologies to enabling people affected by disaster, relevant authorities and government bodies to quickly share information about disaster conditions.

Contributing donations to torrential rain and flooding in West Japan, Indonesian earthquake, etc. The details on the donation including the total amounts of the donation and where it is sent to are disclosed on the official website. Scan the QR code to access the official website(Japanese only).

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Improving Communication The Group is implementing a variety of programs about information ethics education in order to encourage young people to use the internet safely.

Ongoing holding of lectures (2,500 times annually) on information ethics education In 2018, 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.

Cooperating with Thailand government agency to provide information ethics education The activities described above were highly evaluated not only in Japan but also in Thailand. As a result, the Company and a government agency of Thailand called the Electronic Transactions Development Agency concluded a memorandum of understanding in May 2018 to conduct an information ethics education in the country. In conjunction with this, a localized teaching materials developed for use in local schools, were also launched in Thailand.

LINE-based helplines expanded to cover a wide range of issues, including child abuse counseling The Group has set up LINE-based helplines to give users access to professional counselors via their LINE account. Initially offered in Nagano Prefecture in 2017 to help users deal with bullying and other concerns, the service has since been expanded throughout Japan in cooperation with local governments and government agencies. The issues handled by the helplines have also been broadened to include child abuse prevention and mental healthcare for disaster victims.

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LINE’s Approach to Security

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

Framework for Ensuring Safety

The Group’s security systems The Group has put security organizations in place to guard against threats such as illegal access and halting of services so that its services can be offered continuously without any disruptions. Staffed by specialists in various fields of expertise, these organizations manage the safety of a vast number of servers and work together to implement diverse security measures for protecting the Group’s services.

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

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Aiming for a Safer Internet Environment

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 second holding of Cyber Disaster Prevention Day in 2018, the Company released a special interactive video to encourage users to learn about how phishing techniques are deployed to illicitly obtain personal information. Approximately three million users watched the video over a period of 15 days. Highlighting how cyber-attacks are a problem for the internet environment as a whole, the initiative, in which other companies in the industry also participated, was implemented with the cooperation with the Metropolitan Police Department and the backing of the Council of Anti-Phishing Japan, Japan Cybercrime Control Center, and SPREAD (a council promoting distribution of security measures to strengthen security).

Hosting international security summits The Company regularly holds international security summits together with Intertrust Technologies Corporation, a U.S.-based software company specializing in cyber security. In 2018, the summits were held in Tokyo in May followed by Rome in October. The events, which bring together the minds of experts from all over the world, focused on issues related to the increasingly central role played by data in today’s economy, and featured practical sessions and dynamic discussions about compliance with new laws and regulations.

Promoting Safe and Secure Use of LINE Services

The Company has set up a website called Line Safety Center to promote the safe usage of LINE services by all users. The website provides information on ensuring the security of important accounts and taking precautions against potential problems, including instructions for transferring a LINE account to a new device and for adding and blocking friends on LINE. In addition, a department has been set up to handle inquiries requesting on-demand lectures on information ethics education or educational materials used in workshops (all free of charge).

Scan the QR code to access LINE Safety Center(Japanese only).

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IR Official Account The Group has set up an official IR account called LINE IR News. After LINE users add the official account to their friend lists, the users can receive information from the Group, including IR disclosure information, financial information and the latest information selected from press releases and CSR news.

How to add the official account as a friend 1. Scan the QR code or search for the account name below.

How to search by account name Search for “@lineir_jp” (English version is “@lineir_en”) by going to: More > Official Accounts > Search by name, ID or category

2. Add “LINE IR News” as a friend After confirming the notes on the authorization page, tap “Confirm.”

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