Risk of service limitations resulting from breaches of the secrecy of communications and leakage of personal information

「Through services such as LINE and Yahoo! Mail, we handle information covered by communications secrecy, including the content of communications. We handle this information appropriately in accordance with the Telecommunications Business Act and under our information security initiatives. However, if this information is compromised due to system failures affecting the systems that provide services such as LINE and Yahoo! Mail, malware or other factors, physical intrusion into communications facilities, or the intentional or negligent acts of our related parties, business partners or contractors, this could damage our brand image and lead to legal disputes. It could also affect our business performance through compensation payments and lower revenue resulting from user declines and service suspensions or reductions.」

「During the first quarter of the current fiscal year, there were no occurrences of the major risks that management recognizes as potentially having a material impact on the Group's financial position, operating results or cash flows, among the matters concerning the business and accounting conditions described in the annual securities report for the previous fiscal year, and no material changes to the section titled "Business and Other Risks" in that report.」

「LINE Corporation and Yahoo Japan Corporation of the group handle information covered by communications secrecy, including the content of communications, through services such as LINE and Yahoo! Mail.」