Exhibit 15.2   LINE MOBILE Financial Statements




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Report of Independent Auditors To the Board of Directors of LINE MOBILE Corporation We have audited the accompanying financial statements of LINE MOBILE Corporation, which comprise the statement of financial position as of
March 31, 2019, and the related statements of profit or loss and other comprehensive income, changes in equity and cash flows for the period from April 2, 2018 to March 31, 2019. Managements Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial
Reporting Standards as issued by the International Accounting Standards Board; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation offinancial statements that are
free from material misstatement, whether due to fraud or error. Auditors Responsibility Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with auditing
standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures
selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Companys
preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Companys internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified audit opinion. Basis for Qualified Opinion As
discussed in Note 2, the accompanying financial statements are not presented in accordance with IFRS 1, First-time adoption of International Financial Reporting Standards, as they do not include comparative figures or required transition
disclosures, which constitute departures from International Financial Reporting Standards as issued by the International Accounting Standards Board. Qualified Opinion In our opinion,
except for the effects of the matter discussed in the Basis for Qualified Opinion paragraph, the financial statements referred to above present fairly, in all material respects, the financial position of LINE MOBILE Corporation as of March 31,
2019, and the results of its operations and its cash flows for the period from April 2, 2018 to March 31, 2019 in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. /s/ PricewaterhouseCoopers Aarata LLC Tokyo, Japan September 27, 2019  1




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LINE MOBILE Corporation Statement of Financial Position (In millions of yen)  Notes


March 31, 2019AssetsCurrent assetsCash


6



1,568Trade and other receivables


7, 12, 16, 18



2,863Contract assets


16



931Inventories


8



188Prepaid expenses






399Other current assets


11



214Total current assets






6,163Non-current assetsProperty and equipment


9



282Other non-current assets


11



28Total non-current assets






310Total assets






6,473LiabilitiesCurrent liabilitiesTrade and other payables


12, 18



3,570Accrued expenses






801Contract liabilities


16



163Other current liabilities






0Total current liabilities






4,534Non-current liabilitiesOther non-current liabilities


11



8Total non-current liabilities






8Total liabilities






4,542Shareholders equityShare capital


14



6,910Share premium


14



6,876Accumulated deficit






(11,855
)Equity attributable to the shareholders of the Company






1,931Total shareholders equity






1,931Total liabilities and shareholders equity






6,473 See Notes to Financial Statements  2




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LINE MOBILE Corporation Statement of Profit or Loss and Other Comprehensive Income (In millions of yen)  Notes


April 2, 2018 toMarch 31, 2019Revenues and other operating income:Revenues


5, 16



9,443Other operating income


17



23Total revenues and other operating income






9,466Operating expenses:Employee compensation expenses


13



(366
)Marketing expenses






(2,702
)Outsourcing and other service expenses






(2,118
)Communication facility fee






(8,864
)Depreciation expenses


9



(18
)Other operating expenses


17



(2,453
)Total operating expenses






(16,521
)Loss from operating activities






(7,055
)Finance income


17



12Finance costs


17



(0
)Loss before tax






(7,043
)Income tax expenses


10



Loss for the period






(7,043
)Attributable to:The shareholders of the Company






(7,043
)Other comprehensive income/(loss)Item that will not be reclassified to profit or loss






Items that may be reclassified to profit or loss






Total other comprehensive income for the period, net of tax






Total comprehensive loss for the period, net of tax






(7,043
)Attributable to:The shareholders of the Company






(7,043
)  See Notes to Financial Statements  3




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LINE MOBILE Corporation Statement of Changes in Equity (In millions of yen)  Equity attributable to the shareholders of the CompanyNotes


Sharecapital


Sharepremium


Accumulateddeficit


TotalshareholdersequityBalance at April 2, 2018






6,910



6,876



(4,812
)


8,974Comprehensive lossLoss for the period














(7,043
)


(7,043
)Other comprehensive income


















Total comprehensive loss for the year














(7,043
)


(7,043
)Balance at March 31, 2019






6,910



6,876



(11,855
)


1,931 See Notes to Financial Statements  4




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LINE MOBILE Corporation Statement of Cash Flows (In
millions of yen)  Notes

April 2, 2018 toMarch 31, 2019Cash flows from operating activitiesLoss before tax




(7,043
)Adjustments for:Depreciation expenses

9


18Finance cost

17


0Finance income

17


(12
)Changes in:Trade and other receivables




(1,609
)Contract assets

16


(884
)Inventories

8


(140
)Trade and other payables




2,302Contract liabilities

16


89Accrued expenses




(190
)Prepaid expenses




(242
)Other current assets




(164
)Other non-current assets




(18
)Other non-current liabilities




7Cash used in operating activities




(7,886
)Interest received




7Interest paid




(0
)Net cash used in operating activities




(7,879
)Cash flows from investing activitiesAcquisition of property and equipment

9


(66
)Payments for loan receivables

20


(7,313
)Collection of loan receivables

20


7,313Net cash used in investing activities




(66
)Cash flows from financing activitiesRepayment of short-term borrowing

15


(2,000
)Net cash used in financing activities




(2,000
)Net decrease in cash




(9,945
)Cash at the beginning of the period




11,513Cash at the end of the period

6


1,568 See Notes to Financial Statements  5




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LINE MOBILE Corporation Notes to Financial Statements  1.
Reporting entity LINE MOBILE Corporation (the Company) was incorporated in February 2016 in Japan in accordance with the Companies Act of Japan
under the name LMN Corporation. In June 2016, the Company changed its name to LINE MOBILE Corporation and commenced its services starting September 2016. The Companys head quarter is located at 4-1-6 Shinjuku, Shinjuku-ku, Tokyo, Japan. The Company
provides mobile virtual network operator (MVNO) services in Japan utilizing the wireless communication networks of third-party mobile telecommunication service providers and sells mobile devices. The Company was a fully owned subsidiary of LINE Corporation (LINE) as of the date of incorporation. Effective April 2, 2018, the
Company issued new shares to SoftBank Corp. (SoftBank) through a third-party allotment, pursuant to which LINEs ownership interest in the Company decreased from 100% to 49% with SoftBank holding the remaining interest. Since then,
SoftBank Group Corp., the parent of SoftBank, is the ultimate parent company of the Company.  2.
Basis of preparation The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB) except for the following: Although the Company has adopted IFRS since January 1, 2017, the disclosures required under IFRS 1 for first time adoption as well as comparative financial
information are not disclosed. Please refer to the second paragraph for further details. As forementioned above, effective April 2, 2018, the Company provided a third-party allotment to SoftBank, thus the LINEs ownership in the Company
decreased from 100% to 49%. Since then, the Company has been accounted as an investment under the equity method on LINEs consolidated financial statements and has changed its fiscal year-end from
December 31 to March 31. These financial statements have been prepared pursuant to Rule 3-09
of SEC Regulation S-X for inclusion in the amendment of the Form 20-F of LINE, as the Company was a significant equity-method investee of LINE. The disclosures required
under IFRS 1 for first time adoption as well as comparative financial information are not disclosed. Instead, pursuant to Rule 3-09 and FRM Section 2405.4, the financial statements were prepared for the
period in which the Company has been an equity-method investee of LINE, which is for its Statement of Financial Position as of March 31, 2019, and for the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Changes in
Equity, and the Statement of Cash Flows for the period from April 2, 2018 to March 31, 2019. The financial statements do not reflect the issuance of shares (and the related receipt of proceeds) upon the third-party allotment on April 2,
2018 since the financial statements only present the results of operations and cash flows from that point forward. The financial
statements are presented in Japanese yen, which is also the Companys functional currency. The financial statements are presented in millions of Japanese yen. The financial statements were approved by Ayano Kado, Representative Director and
Hayato Imamura, Director of Corporate Services on September 26, 2019.  3.
Significant Accounting Policies The significant accounting policies applied by the Company in preparing its financial statements are set out below. The accounting policies
have been applied consistently to all periods presented in these financial statements.  6




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LINE MOBILE Corporation Notes to Financial Statements (continued)  3.
Significant Accounting Policies (continued)  (1)
Basis of Measurement The financial statements have been prepared on a historical cost basis.  (2)
Cash Cash consists of cash on hand and demand deposits which can be withdrawn at any time.  (3)
Financial Assets  (a)
Recognition of financial assets The Company recognizes a financial asset when it becomes a party to the contractual provisions of the instruments. The Company
initially recognizes trade and other receivables on the date of transaction.  (b)
Classification of financial assets Based on the Companys business model for managing its financial assets and the characteristics of contractual cash flows
of the financial assets, the Company classifies its financial assets in the category of financial assets at amortized cost. Financial assets measured at amortized cost include debt instruments of which contractual cash flows represent solely payments
of principal and interest on the principal amount outstanding, and which are held within a business model whose objective is achieved solely by collecting contractual cash flows.  (c)
Measurement of financial assets  i.
Initial measurement At initial recognition, the Company measures financial assets at fair value. Financial assets not classified as financial
assets at fair value through profit or loss are measured at fair value, including any transaction costs that are directly attributable to the acquisition of the financial asset.  ii.
Subsequent measurement Financial assets at amortized cost are measured at amortized cost using the effective interest method, and related interest
income are included in finance income. When the financial asset is derecognized, the difference between amortized cost and consideration received is recognized in profit or loss. When there are changes in the amount of expected credit loss of the
financial asset, an impairment gain or loss is recognized in profit or loss.  (d)
Derecognition of a financial asset The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers
the right to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is
created or retained by the Company is recognized as a separate asset or liability. If the Company retains substantially all the risks and rewards of ownership of the transferred financial assets, the Company continues to recognize the transferred
financial assets and recognizes financial liabilities for the consideration received.  7




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LINE MOBILE Corporation Notes to Financial Statements (continued)  3.
Significant Accounting Policies (continued)  (4)
Financial Liabilities  (a)
Initial recognition and classification The Company recognizes financial liabilities in the Statements of Financial Position when the Company becomes a party to the
contractual provisions of the financial liability. Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, or financial liabilities measured at amortized cost.  (b)
Initial measurement of financial liabilities All financial liabilities are recognized initially at fair value and, in the case of financial liabilities measured at
amortized cost, net of directly attributable transaction costs.  (c)
Subsequent measurement All financial liabilities are measured at amortized cost using the effective interest method. The Company derecognizes financial liabilities from the Statements of Financial Position when it is extinguished (i.e., when
the obligation specified in the contract is discharged, canceled or expired).  (5)
Fair Value Measurement The Company refers to the following inputs in order to measure the fair value of applicable financial instruments:  
Level 1 inputs are quoted prices in active markets for identical assets or liabilities.  
Level 2 inputs are quoted prices for similar assets or liabilities in active markets, quoted prices for
identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data by correlation or other means.  
Level 3 inputs are derived from valuation techniques in which one or more significant inputs or value
drivers are unobservable, which reflect the reporting entitys own assumptions that market participants would use in establishing a price. Transfers between levels of the fair value hierarchy are recognized as if they have occurred at the beginning of the reporting
period.  (6)
Inventories Inventories, consisting of mobile devices, are stated at the lower of cost and net realizable value. Cost is determined on a first-in, first-out (FIFO) basis. Net realizable value is determined based on the estimated selling price, less costs to sell.  (7)
Share Capital Common shares are classified as equity. Incremental costs directly attributable to the issue of common shares and stock options
are recognized as a deduction from equity, net of any tax effects.  8




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LINE MOBILE Corporation Notes to Financial Statements (continued)  3.
Significant Accounting Policies (continued)  (8)
Property and Equipment Property and equipment are measured and recognized at cost, net of accumulated depreciation and/or accumulated impairment
losses, if any. Cost includes any other costs directly attributable to bring the assets to a working condition for their intended use and the costs of dismantling and removing the assets and restoring the site on which they are located. The cost of replacing a part of property and equipment is included in the carrying amount of the asset or recognized as a
separate asset, as necessary, if it is probable that the future economic benefits embodied within the part will flow into the Company and if the cost can be reliably measured. Accordingly, the carrying amount of those parts that are replaced is
derecognized. The costs of day-to-day servicing of property and equipment are recognized in profit or loss as incurred. Assets held within construction-in-progress are
not depreciated. Depreciation of property and equipment is computed using the straight-line method based on the depreciable amount of the assets over their respective useful lives as provided below. A component that is significant compared with the
total cost of an item of property and equipment is depreciated separately over its useful life. Gains or losses arising
from the derecognition of an item of property and equipment are determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item and recognized in other operating income or expenses. The estimated useful lives for the period from April 2, 2018 to March 31, 2019 are as follows:  Estimated useful lives (years)Leasehold improvements

5Equipment

9Others

3-5 Depreciation methods, useful lives and residual values are reviewed at each fiscal year-end and adjusted, as appropriate, if expectations differ from previous estimates. The change is accounted for as a change in an accounting estimate.  (9)
Leases The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement at the
inception date. In the event that fulfillment of the arrangement is dependent on the use of specific assets or the arrangement transfers a right to use the asset, such assets are defined as a lease transaction.  (a)
Finance Leases Leases that transfer substantially all risks and benefits of ownership of the leased item to the lessee are classified as
finance leases.  (b)
Operating Leases All lease arrangements, except finance leases that have been capitalized in the Statements of Financial Position, are
classified as operating leases.  9




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LINE MOBILE Corporation Notes to Financial Statements (continued)  3.
Significant Accounting Policies (continued)  (9)
Leases (continued)  (b)
Operating Leases (continued)  For operating lease transactions where the Company is a lessee, lease
payments are recognized as an expense using the straight-line method over the lease term in the Statements of Profit or Loss.  (10)
Impairment of Financial Assets The Company assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at
amortized cost and fair value through other comprehensive income. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the Company applies the simplified approach, which
requires expected lifetime credit losses to be recognized from initial recognition of the receivables.  (11)
Impairment of Non-financial Assets The Companys tangible assets are tested for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the assets carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an assets fair value less costs of
disposal and value in use. Tangible assets that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period  (12)
Employee Compensation Expenses Employee compensation expenses consist of short-term employee compensations that are expected to be settled wholly before 12
months after the end of the annual reporting period in which the employees render the related service. The undiscounted short-term employee compensations are accounted for on an accrual basis over the period in which employees have provided the
services.  (13)
Marketing Expenses The Company incurs marketing expenses to increase brand awareness and to promote the launching of new services. The
Companys marketing expenses are primarily related to TV commercials. Marketing personnel compensation expenses are not included in marketing expenses, and are recorded as part of the employee compensation expenses. Expenditures related to
marketing activities are recognized as expenses when incurred.  (14)
Revenue The Company mainly provides services of audio communication, data communication, and other related optional services,
collectively mobile communication services and also sells mobile devices to its customers. The Company has adopted IFRS 15 on January 1, 2017. The Company recognizes revenue differently, depending on the type of transactions, which is described below. Revenue is
measured at the fair value of the consideration of services provided in the ordinary course of business, less applicable sales and other taxes, where appropriate. For both types of services described below, the Company recognizes prepaid expenses for commission fees paid to stores and
recognizes related expenses on a straight-line basis through the estimated service period.  10




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LINE MOBILE Corporation Notes to Financial Statements (continued)  3.
Significant Accounting Policies (continued)  (14)
Revenue (continued)  (a)
Mobile Communication Services Revenue for mobile communication services are mainly related to monthly usage fees, communication fees, and service charges.
Such services are invoiced to the customer on a monthly basis and payment is due within a short period of time. The Company recognizes revenue when the performance obligations are satisfied as such services are provided. Within the aforementioned
services, there are also initial set-up commission fees received from the customer and advance payments received from retail stores in exchange for entry packages as mobile communication service registration
fees. Both of these fees are recorded as contract liabilities and are recognized as revenue on a straight-line basis through the contract period. The contract period is the duration of the contract in which the parties to the contract have present
enforceable rights and obligations. There are also instances where the Company enters into agreements with customers in
which the first month of payment is free. In such cases, the Company recognizes contract assets which consists of unbilled receivables from customers for mobile communication services for the portion in which performance obligations have been
satisfied.  (b)
Mobile Devices Mobile devices revenues are derived from sales of wireless phone devices to the customer. Payments from customers are either
received in full when selling the device to the customer, or received in installments on a monthly basis due within a short period of time. The Companys performance obligation is satisfied when the control of the mobile devices are transferred
to the customer. Thus, revenue is recognized at a point in time when the mobile device is physically handed over to the customer. There are no significant financing components in services the Company provides its customers.  (15)
Finance Income and Finance Costs Finance income includes interest income such as those from loans and demand deposits. Finance costs mainly comprise interest expense on borrowings. Borrowing costs that are not directly attributable to the
acquisition, construction or production of a qualifying asset are recognized in profit or loss using the effective interest method.  (16)
Income Taxes Income tax expenses comprise current and deferred taxes. Current and deferred taxes are recognized in profit or loss, except to
the extent that they relate to a business combination, or items recognized directly in equity or in other comprehensive income.  (a)
Current tax Current tax is the expected tax payable or receivable on the taxable profit or loss for the year, using tax rates enacted or
substantively enacted at the end of the reporting period and any adjustment to tax payable in respect of previous years.  11




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LINE MOBILE Corporation Notes to Financial Statements (continued)  3.
Significant Accounting Policies (continued)  (16)
Income Taxes (continued)  (a)
Current tax (continued)  The taxable profit is different from the accounting profit for the period
since the taxable profit is calculated excluding temporary differences, which will be taxable or deductible in determining taxable profit (tax loss) of future periods, and non-taxable or non-deductible items from the accounting profit.  (b)
Deferred tax Deferred tax is recognized using the asset-liability method in respect of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. A deferred tax liability is recognized for all taxable temporary differences. A deferred tax asset is recognized for all deductible temporary
differences, unused tax losses and unused tax credits to the extent that it is probable that taxable profit will be available against which they can be utilized. However, deferred tax is not recognized for the following temporary differences:
taxable temporary differences arising on the initial recognition of goodwill, or the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting profit or loss nor taxable
income. The carrying amount of a deferred tax asset is reviewed at the end of each reporting period and is reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilized. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the asset is
realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and deferred tax assets reflects the tax
consequences that would follow, in a manner that the Company expects, at the end of the reporting period to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset only if there is a legally enforceable right to offset the related current tax
liabilities and assets, and they relate to income taxes levied on the same taxable entity by the same tax authority.  (17)
Operating Segments The Company identifies operating segments based on the internal report regularly reviewed by the Companys Chief Operating
Decision Maker to make decisions about resources to be allocated to segments and assess performance. An operating segment of the Company is a component for which discrete financial information is available. The Chief Operating Decision Maker has
been identified as the Companys board of directors.  (18)
Standards Issued but not yet Effective IFRS 16 Leases The IASB issued IFRS 16 Leases. IFRS 16 governs the accounting for leases and the related contractual rights and obligations.
Lessees will no longer make a distinction between finance and operating leases as they have been required to do thus far under IAS 17. At the commencement date of a lease, a lessee will  12




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LINE MOBILE Corporation Notes to Financial Statements (continued)  3.
Significant Accounting Policies (continued)  (18)
Standards Issued but not yet Effective (continued)  recognize a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Lessees will be required to separately recognize the interest expense on the lease liability and the depreciation expense on the right-of-use asset. Lessor accounting under IFRS 16 is substantially unchanged from todays accounting under IAS 17. Lessors will continue to classify all leases using
the same classification principle as in IAS 17 and distinguish between two types of leases: operating and finance leases. IFRS 16 also requires lessees and lessors to make more extensive disclosures than under IAS 17. The Company will adopt IFRS 16
for the annual reporting period beginning on April 1, 2019, which is the mandatory effective date. The Company intends to use the simplified approach and does not plan to restate the amounts in the comparable reporting periods prior to adoption
of IFRS 16. The most significant impact identified is that the Company will recognize new right-of-use assets and lease liabilities for its operating leases of certain
stores. In addition, the nature of expenses related to those leases will change from the recognition of lease expenses under IAS 17 to the recognition of depreciation expenses for
right-of-use assets and interest for lease liability under IFRS 16. On the reporting date, the Company expects to recognize the
right-of-use assets and lease liabilities of 422 million yen and 422 million yen, respectively, as of April 1, 2019 due to the adoption of IFRS 16. For
the fiscal year ending March 31, 2020, the operating lease expenses are expected to decrease by 84 million yen, and total in depreciation expenses of the
right-of-use assets and interest expenses on lease liabilities are expected to increase by 86 million yen, compared to those under IAS 17. As of March 31,
2019, the Company bears commitments of 47 million yen for non-cancellable operating leases (refer to Note 13 Lease-Company as Lessee). Due to the adoption of IFRS 16, for the fiscal year ending March 31,
2020, cash flows from operating activities are expected to increase by approximately 84 million yen and cash flows from financing activities are expected to decrease by 84 million yen, compared to those under IAS 17, due to the principal
payment of lease liabilities being classified to the cash flows from financing activities.  4.
Significant Accounting Judgements, Estimates and Assumptions The preparation of the Companys financial statements requires management to make estimates and assumptions that affect the reported
amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures. These estimates and assumptions are based on the best judgment of management in light of historical experience and various factors deemed to be reasonable as of
the fiscal year end date. Given their nature, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. The estimates and assumptions are continuously reviewed by management. The effects of a change in estimates and assumptions are recognized in
the period of the change or in the period of the change and future periods. Among estimates and assumptions made by management, the following estimates and assumptions are ones that may have a material effect on the amounts recognized in the
financial statements of the Company.  (a)
Recoverability of deferred tax assets Regarding temporary differences, which are differences between carrying value of an asset or liability in the Statements of
Financial Position and its tax base, the Company recognizes deferred tax assets and deferred tax liabilities. The deferred tax assets and deferred tax liabilities are calculated using the tax rates based on tax laws that have been enacted or
substantively enacted by the end of the reporting period and the tax rates  13




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LINE MOBILE Corporation Notes to Financial Statements (continued)  4.
Significant Accounting Judgements, Estimates and Assumptions (continued)  (a)
Recoverability of deferred tax assets (continued)  that are expected to apply to the period when the deferred tax asset is realized or the deferred tax liability is settled. Deferred tax assets are recognized for all deductible temporary
differences, unused tax losses carryforward and unused tax credits carryforward to the extent that it is probable that taxable income will be available. The estimation of future taxable income is calculated based on financial budgets approved by
management of the Company, and it is based on managements subjective judgments and assumptions. The Company considers these estimates to be significant because any adjustments in the assumed conditions and amendments of tax laws in the future
may significantly affect the amounts of deferred tax assets and deferred tax liabilities.  5.
Segment Information A reporting segment is a component that engages in business activities and incurs revenues and expenses with discrete financial information
whose operating results are regularly reviewed by the Chief Operating Decision Maker to make decisions to allocate resources to each reportable segment and assessing its performance. The Company has a single reportable segment that provides MVNO services utilizing third party wireless communication networks and selling
mobile devices. The Chief Operating Decision Maker of the Company, who is the Companys board of directors, regularly reviews the
Companys performance based on a single operating segment and makes all business decisions on such.  (1)
Revenues from Major Services The Companys revenues from its major services for the period from April 2, 2018 to March 31, 2019 are as
follows:  (In millions of yen)Period from April 2, 2018to March 31, 2019Mobile communication services


8,537Mobile devices


888Other


18Total


9,443  (2)
Geographic Information Revenues from external customers All revenues from external customers are from customers in Japan. Non-current operating assets Non-current operating assets mainly consist of property and equipment. All non-current operating assets are located in Japan.  14




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LINE MOBILE Corporation Notes to Financial Statements (continued)  5.
Segment Information (continued)  (3)
Major Customers No single customer accounted for 10 percent or more of the Companys total revenues for the period from April 2,
2018 to March 31, 2019.  6.
Cash The breakdown of cash as of March 31, 2019 is as follows:  (In millions of yen)March 31, 2019Demand deposits


1,568  7.
Trade and Other Receivables Trade and other receivables as of March 31, 2019 is as follow:  (In millions of yen)March 31, 2019Trade and other receivables, current


3,151Loss allowance(1)


(288
)Total trade and other receivables


2,863  (1)
Loss allowance accounted only for trade receivables and amounted to 288 million yen as of
March 31, 2019. For movement in the loss allowance account related to trade and other receivables, refer to Note
18 Financial Risk Management.  8.
Inventories Inventories as of March 31, 2019 is as follows:  (In millions of yen)March 31, 2019Mobile devices


188Total inventories


188 Cost of goods for the period from April 2, 2018 to March 31, 2019, was 782 million yen. Inventory valuation losses for the period from April 2, 2018 to March 31, 2019 was 3 million yen.  15




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LINE MOBILE Corporation Notes to Financial Statements (continued)  9.
Property and Equipment Changes in property and equipment for the period from April 2, 2018 to March 31, 2019 are as follows:  (In millions of yen)Leaseholdimprovements


Equipment


Construction-in-progress


Others


TotalAcquisition costBalance at April 2, 2018


11











4



15Acquisitions






63



222



3



288Balance at March 31, 2019


11



63



222



7



303Accumulated depreciation and impairmentBalance at April 2, 2018


(2
)










(1
)


(3
)Depreciation


(2
)


(15
)






(1
)


(18
)Balance at March 31, 2019


(4
)


(15
)






(2
)


(21
)Carrying amountsBalance at April 2, 2018


9











3



12Balance at March 31, 2019


7



48



222



5



282  10.
Income Taxes  (1)
Deferred Tax Assets and Deferred Tax Liabilities Below is a breakdown of the deductible temporary differences, unused tax losses, and unused tax credits for which no deferred
tax assets were recognized:  (In millions of yen)March 31, 2019Deductible temporary differences


1,685Unused tax losses


10,173Unused tax credits


Total


11,858 Below is a breakdown of unused tax losses by expiry date for which no deferred tax assets were
recognized:  (In millions of yen)March 31, 2019Less than one year


Between one year and five years


Five years and more


10,173No expiration date


Total


10,173  16




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LINE MOBILE Corporation Notes to Financial Statements (continued)  (2)
Effective tax rate The income tax expense calculated by applying the statutory tax rate to the Companys loss before tax differs from actual
tax expenses in the Statement of Profit or Loss for the year ended March 31, 2019 for the following reasons:  (In millions of yen)March 31, 2019Loss before tax


(7,043
)Income tax refund at statutory rate of 31.69%


2,232Assessment of recoverability of deferred tax
assets(1)


(2,236
)Other


4Income tax expenses reported in the Statement of Profit or Loss


  (1)
For the period from April 2, 2018 to March 31, 2019, the amount was due to deferred tax assets
being unrecoverable.  11.
Other Current Assets, Other Non-Current Assets, and Other Non-Current Liabilities  (1)
Other current assets as of March 31, 2019 consist of consumption taxes receivable.  (2)
Other non-current assets as of March 31, 2019 are as follows:   (In millions of yen)March 31, 2019Long-term prepaid expenses


19Other


9Total other non-current assets


28  (3)
Other non-current liabilities as of March 31, 2019 consist of
long-term accrued expenses.  17




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LINE MOBILE Corporation Notes to Financial Statements (continued)  12.
Financial Assets and Financial Liabilities The carrying amounts and fair value of financial instruments, except for cash, by line item in the Statements of Financial Position and by
category as defined in IFRS 9 Financial Instruments as of March 31, 2019 are as follows: The fair value is not disclosed for
those financial instruments which are not measured at fair value in the Statements of Financial Position, and whose fair value approximates their carrying amount due to their short-term and/or variable-interest bearing nature.  (In millions of yen)March 31, 2019Items

Book value


Fair valueFinancial assets:Trade and other receivablesFinancial assets at amortized cost


2,863Total


2,863Financial liabilitiesTrade and other payablesFinancial liabilities measured at amortized cost


3,570Total


3,570  13.
LeasesCompany as Lessee Operating lease commitmentsCompany as lessee The Company has entered into commercial lease agreements for certain office spaces and stores. All leases have a one year lease term. There are
no restrictions placed upon the Company be entering into these leases. Future minimum lease payments under
non-cancelable operating leases are as follows:  (In millions of yen)March 31, 2019Within one year


47  14.
Issued Capital and Reserves The movement in issued capital and reserves for the period from April 2, 2018 to March 31, 2019 is as follows:  (1)
Authorized shares and shares issued The number of authorized shares with no par value, shares issued with no par value, and amount of share capital is 1,000,000,
697,959, and 6,910 million yen, respectively, as of April 2, 2018 and March 31, 2019.  18




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LINE MOBILE Corporation Notes to Financial Statements (continued)  14.
Issued Capital and Reserves (continued)  (2)
Share premium and retained earnings Share premium There has been no change in total share premium for the period from April 2, 2018 to March 31, 2019, and the total
share premium was 6,876 million yen as of April 2, 2018 and March 31, 2019. The share premium mainly consists of capital reserve required under the Companies Act of Japan. Under the Companies Act of Japan, at least 50% of the proceeds of certain issuances of share capital shall be credited to share
capital. The remaining proceeds shall be credited to share premium. The Companies Act permits, upon approval at the general meeting of shareholders, the transfer of amounts from share premium to share capital. Retained Earnings The Companies Act of Japan requires that an amount equal to 10% of dividends from retained earnings shall be appropriated as
capital reserve (part of capital surplus) or appropriated for legal reserve (part of retained earnings) until the aggregate amount of capital reserve and legal reserve is equal to 25% of share capital. The legal reserve may be used to eliminate or
reduce a deficit or be transferred to retained earnings upon approval at the general meeting of shareholders.  15.
Supplemental Cash Flow Information Movements on liabilities from financing activities are as follows:  (In millions of yen)Borrowings which aredue less than one year


TotalNet liabilities as of April 2, 2018


2,000



2,000Cash flows


(2,000
)


(2,000
)Net liabilities as of March 31, 2019






  16.
Revenue from contracts with Customers The Company recognized the following amounts related to revenue in the Statement of Profit or Loss for the period from April 2, 2018 to
March 31, 2019:  (In millions of yen)Period from April 2, 2018to March 31, 2019Revenue from contracts with customersMobile communication services(1)


8,537Mobile devices(2)


888Others


18Total revenue


9,443  (1)
The Companys performance obligations are satisfied as mobile communication services are provided to
customers. Accordingly, revenue is recognized over the contract period on a straight-line method. Certain  19




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LINE MOBILE Corporation Notes to Financial Statements (continued)  16.
Revenue from contracts with Customers (continued)  additional incremental charges for calls and other services are recognized as those services are performed; however, these amounts are not significant for the period from April 2, 2018 to March
31, 2019. (2)
The Companys performance obligations are satisfied when the control of the mobile devices are
transferred to the customer. Accordingly, revenue is recognized at a point in time. Trade and other receivables, contract assets and
contract liabilities  (In millions of yen)March 31, 2019Trade and other receivables


2,863Contract assets(1)


931Contract liabilitiesUnsatisfied performance
obligations(2)


52Advances received(3)


111Total contract liabilities


163  (1)
Contract assets consist of unbilled receivables from customers for mobile communication services for the
portion in which performance obligations have been satisfied. (2)
Unsatisfied performance obligations consist of initial set-up commission fees received from the customer. (3)
Advance payments received consist of advance payments received from retail stores in exchange for entry
packages as mobile communication service registration fees.  17.
Other Income and Expenses, Finance Income and Costs  (1)
Other operating income for the period from April 2, 2018 to March 31, 2019 mainly consists of
insurance income related to installment sale of mobile devices.  (2)
Other operating expenses for the period from April 2, 2018 to March 31, 2019 mainly consists of
the following:  (In millions of yen)Period fromApril 2, 2018 toMarch 31, 2019Licensing expenses


393Cost of mobile devices


782Sales commission expenses


458Others(1)


820Total


2,453  (1)
Others for the period from April 2, 2018 to March 31, 2019 mainly consists of supplies, payment
processing expenses, and provision of allowance for doubtful accounts.  (3)
Finance income for the period from April 2, 2018 to March 31, 2019 includes interest income such
as those from loans and demand deposits.  (4)
Finance cost for the period from April 2, 2018 to March 31, 2019 mainly consists of interest
expenses.  20




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LINE MOBILE Corporation Notes to Financial Statements (continued)  18.
Financial Risk Management The Company has exposure to the following risks from its use of financial instruments:  
Credit risk  
Liquidity risk This note presents information about the Companys exposure to the above risks, the Companys objectives, policies and processes for
measuring and managing risk, and the Companys management of capital. Further quantitative disclosures are included throughout the Companys financial statements.  (1)
Risk Management Framework The Company is exposed to financial risks arising from its operating activities, such as credit risks and liquidity risks. The
Companys overall risk management policy mainly focuses on preventing and reducing such risks through a pre-determined policy.  (2)
Credit Risk The Company is exposed to credit risks arising from counterparties for receivables as well as cash and deposits with financial
institutions. The Company does not have a highly concentrated exposure to credit risk due to the policy to prevent and reduce such risks. Also, the Company follows its credit management policy and manages the due dates and remaining balances of
receivables from customers and regularly analyzes the credit ratings for its major customers.  (a)
Maximum amounts of possible financial loss to the Company due to credit risk as of March 31, 2019 are
as follows:  (In millions of yen)March 31, 2019Book valueDemand deposits


1,568Trade and other receivables


2,863Total


4,431  (b)
Trade and other receivables The Company applies the simplified approach to measure the loss allowance at an amount equal to lifetime expected credit losses
for trade and other receivables. The expected credit losses are measured based on factors including historical results and days past due. The Company generally defines defaults in trade and other receivables as those which customers do not make
payment by the due date and measures the loss allowance as the full amount of all trade and other receivables that are outstanding (overdue) and a percentage based on the expected credit loss ratio of trade and other receivables that are
not outstanding (current).  21




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LINE MOBILE Corporation Notes to Financial Statements (continued)  18.
Financial Risk Management (continued)  (2)
Credit Risk (continued)  (b)
Trade and other receivables (continued)  Set out below is the information about the credit risk exposure on the
Companys trade receivables using a provision matrix as of March 31, 2019:  (In millions of yen)March 31, 2019Current


Overdue


TotalTrade and other receivables


2,893



258



3,151Life-time expected credit losses


(30
)


(258
)


(288
)Contract Assets


931







931Life-time expected credit losses










 Below is the movement in the allowance for doubtful accounts attributable to trade and other
receivables, and other financial assets, current:  (In millions of yen)ProvisionsLoss allowance balance at April 2, 2018


(122
)Provision for the year


(166
)Loss allowance balance at March 31, 2019


(288
) As at March 31, 2019, all other financial assets carried at amortized cost are considered
to have low credit risk and therefore no provision for losses has been recognized.  (3)
Liquidity Risk The Company continuously investigates opportunities to raise capital through bank borrowings, leases, etc. considering the
market environment and balance between short-term and long-term management strategies in order to prevent and reduce liquidity risk. The Company also continuously monitors its liquid fund as well as forecasted vs actual cash flows.  (a)
Financial liabilities The book values of financial liabilities based on the remaining maturities as of March 31, 2019 are as follows. The
amounts below include estimated interest from financial liabilities scheduled to be paid.  (In millions of yen)March 31, 2019Book value


Contractualcash outflows


Less thanone year


One tofive years


Afterfive yearsTrade and other payable


3,570



3,570



3,570







Total


3,570



3,570



3,570







  22




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LINE MOBILE Corporation Notes to Financial Statements (continued)  18.
Financial Risk Management (continued)  (3)
Liquidity Risk (continued)  (a)
Financial liabilities (continued)  The Companys capital management policy is to realize and maintain an
optimal capital structure that maximizes its corporate value for continuous sustainable growth in the midterm and long term. The Company is not subject to any externally imposed capital requirements aside from the generic regulations imposed by the
Japanese Companies Act, and mainly uses the following index for capital management:  
Balance of shareholders equity  
Capital-to-asset-ratio(1)  (1)
The Capital-to-asset-ratio
is calculated by dividing the total shareholders equity balance with total assets. The balance of
shareholders equity and capital-to-asset ratio as of March 31, 2019 are as follows:  March 31, 2019Total shareholders equity (in millions of yen)


1,931Capital-to-asset-ratio (%)


29.8  19.
Commitments and contingencies As of March 31, 2019, the Company has commitments of 1,318 million yen relating to the installation and completion of
telecommunication devices.  20.
Related Party Transactions The following table provides the total amount of outstanding balances and related party transactions entered into for the period from
April 2, 2018 to March 31, 2019.  23




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LINE MOBILE Corporation Notes to Financial Statements (continued)  20.
Related Party Transactions (continued)  (1)
Significant related party transactions and outstanding balances with related parties for the period from
April 2, 2018 to March 31, 2019 are as follows:  (In millions of yen)Relationship

Name

Transaction

Transactionamount


Outstandingpayablebalance, net(9)Parent company

SoftBank Corp.

Payments for loan receivable(1)


7,313



Parent company

SoftBank Corp.

Collection of loan receivable(1)


7,313



Parent company

SoftBank Corp.

Interest on loan receivable(1)


4



Parent company

SoftBank Corp.

Purchase of wireless networking capabilities(2)


1,973



113Parent company

SoftBank Corp.

Outsourcing(3)


427



138Parent company

SoftBank Corp.

Purchase of mobile devices(4)


431



118Company that has significant influence on the Company

LINE Corporation

Repayment of loan payable(5)


2,000



Company that has significant influence on the Company

LINE Corporation

Interest on loan payable(5)


0



Company that has significant influence on the Company

LINE Corporation

Purchase of LINE Points(6)


680



356Company that has significant influence on the Company

LINE Corporation

Royalty payments and the LINE platform usage fees(7)


393



85Subsidiary of parent company

SB C&S Corp.

Payments made on behalf of the Company related to purchases of communication
equipment(8)


240



240  (1)
The Company executed a loan agreement and collected the loan receivables from SoftBank Corp. during the
period from April 2, 2018 to March 31, 2019. (2)
The Company purchased the wireless networking capabilities of SoftBank Corp. (3)
The Company outsourced sales promotion of SIM cards and entry packages at stores to Softbank Corp. (4)
The Company purchased mobile devices to sell to its customers from SoftBank Corp. (5)
The Company repaid loan payable from LINE Corporation during the period from April 2, 2018 to
March 31, 2019. (6)
The Company purchased LINE points from LINE Corporation, the issuer of the points, in order to grant LINE
points to customers of the Company. (7)
The Company paid royalty to use LINE Corporations trademark and LINE platform usage fees for
advertisement on the LINE platform.  24




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LINE MOBILE Corporation Notes to Financial Statements (continued)  20.
Related Party Transactions (continued)  (8)
SB C&S Corp. makes payments for the Company in relations to purchase of communication equipment for MVNO
services. The Company has commitments of 1,318 million yen relating to such purchases as of March 31, 2019. (9)
Outstanding payable balances were unsecured and would be settled in cash net of related receivables, if any.  21.
Subsequent Events Significant issuance of stock In accordance with
the extraordinary general meeting of shareholders held on March 6, 2019, the Company newly issued common shares as follows and completed the transactions on April 2, 2019.  Method of public offering or allotment:

Third-party allotmentDue date for substitute payment:

April 2, 2019Class and number of shares issued:

410,720 shares of common sharesAggregate number of shares issued:

12,000 million yenAmount of reserve to be capitalized:

6,000 million yen  25