You are on page 1of 2


We are a leading global platform for mobile messaging and communication services, content distribution
and advertising. Our mobile messaging application, which is the foundation of our LINE platform and operates on
all major mobile operating systems, enables our users to communicate through free instant messaging and voice and
video calls and serves as a smart portal to our other applications and services. We provide users with access to a
wide range of social and interactive content and services that satisfy our users’ individual needs for access to
information and entertainment such as mobile games and music through our “content platform,” as well as online-tooffline (“O2O”) services such as payment services and job posting, restaurant reservation and taxi booking services
through our “life platform.” We believe that the integration on our LINE platform of content and services offers our
users a convenient way to connect and have fun with their family and friends, explore and share their interests and
satisfy their daily needs with greater ease, which we believe enriches the user experience and ultimately contributes
to higher user loyalty.
Since the introduction of our mobile messaging application in Japan in June 2011, LINE has grown into a
global platform with users in more than 230 countries and a strong user base in Asia. Our active user base has grown
to 218 million monthly active users (“MAUs”) globally in March 2016, with 152 million MAUs located in our four
largest markets of Japan, Taiwan, Thailand and Indonesia. We strive to localize our services to take into account
cultural differences and user needs, and we currently provide our services in 19 languages. According to App Annie
Inc. (“App Annie”), LINE was the fourth largest application publisher globally for the two years ended March 31,
2016, based on the number of downloads from the Social Networking category on iOS App Store and Social and
Communication categories on Google Play, combined. We believe the scale and growth of our global user base
provide us with powerful network effects, whereby LINE becomes more valuable to users, driving further user
growth and engagement as well as attracting more advertisers and platform partners.
At the heart of our platform is the LINE mobile messaging application, which enables users to
communicate with family, friends and other people they care about.

We address people’s basic communication needs. We focus on serving users’ everyday
communication needs by supplying easy-to-use tools, including chat, voice call and video call, with
reliable and secure connectivity wherever they are. In March 2016, our users exchanged an average of
20.4 billion messages per day and our average daily active users (“DAUs”) represented approximately
61.4% of our MAUs globally and 73.0% of our MAUs in our four largest markets of Japan, Taiwan,
Thailand and Indonesia, indicating that our services are already a meaningful part of the daily lives of
many of our users.

We enable closed and real relationship-based communication. We believe that the most rewarding
and lasting forms of expression are those involving private, two-way exchanges between people with
real relationships, which enhance intimacy and security. Our users can connect with other users they
know by directly adding them as friends on LINE or by importing their mobile contact list into LINE.
We believe that closer, intimate relationships are integral to the broader social web of activity,
representing a more meaningful and influential subset of social networks.
We make communication more enriching and expressive. We are a pioneer in the creation and design
of Stickers, our larger and more expressive version of emoticons. Users can express their emotions or
actions by sending a single Sticker instead of a thread of plain text. We believe that Stickers have made
communication both more convenient and more enriching. Our users in aggregate sent an average of
389 million Stickers per day in March 2016.

Our user engagement is driven by such communication being coupled with activities that are an
indispensable part of users’ daily lives. LINE has evolved into an extensive platform that provides not only the
ability to communicate but also access to a wide range of localized entertainment content and lifestyle services, such
as games, video, music, camera and news applications through our content platform as well as O2O services through
our life platform, offering our users richer experiences. With an increasing amount of activity on the internet being
conducted through mobile applications, we believe that LINE provides a fast, versatile and user-friendly platform

for the discovery of content and services in the mobile era. Our broad array of mobile services, combined with our
large and highly engaged user base, gives us unique opportunities to offer greater personalization in terms of the
service and content offerings by introducing a range of application settings.
We believe that our user base provides attractive marketing opportunities for our advertisers. We provide
a variety of targeted and interactive marketing solutions that enable advertisers to promote their brands and amplify
their visibility and reach. We offer a wide variety of “messenger ads” or user-initiated advertising solutions that are
offered through the LINE messaging application, such as Official Accounts, Sponsored Stickers and LINE Point
Ads, allowing advertisers to direct their efforts and communication in a more targeted manner. We also offer
impression-based “performance ads” such as Timeline Ads and other advertisements that utilize our various
communication and content offerings, allowing advertisers to effectively reach a larger number of LINE users. Our
performance ads have become our fastest growing advertisement products.
We generate revenues in a variety of ways and from various participants active on the LINE platform.
Our revenues are primarily generated from games, Stickers and advertising services on the LINE platform, as well
as from advertising on our web portals. We generated revenues of ¥39,586 million in 2013, ¥86,366 million in 2014,
¥120,406 million in 2015 and ¥33,456 million in the first three months of 2016. For the two years ended March 31,
2016, according to App Annie, LINE ranked as the world’s largest mobile publisher based on non-game gross
revenue from iOS App Store and Google Play, combined.