Pivot from asia: #BloomBerG Conference 02/17

PIVOT FROM ASIA: THE LINE CORP.IPO AS A MICRO-CASEPresented by Ms. Ellen Kountz & M. Hermann Djoumessi17 February 2017Bloomberg Conference, Paris, France

BLOOMBERG NEWS: FEBRUARY 17, 2020

RECORD-BREAKING BUYOUT OF FACEBOOK BY LINE

CORP.!

FINANCE STUDENTS WORLDWIDE MUST ALWAYSBE CONFRONTED WITH THE QUESTION….

• Do you believe markets are EFFICIENT?

• If YES, you believe in PASSIVE MANAGEMENT STYLE

• If NO, you belive in ACTIVE MANAGEMENT STYLE

OF ALL THE COMPANIES TO STUDY, WHYLINE CORP.?• The GAFA are over-researched

• The Pan-Asian space is under-reported

• All students can immediately relate to OWNING a smartphone

and USING a Messaging App

On July 13, 2016, market analyst Reiko Shofu of “Sensing Asia” stated that LINE (ticker symbol: LN) “is overrated. Their bottom line commercial viability is indeed in question”. Nevertheless, LINE App is the largest tech IPO of the year, raising over $1 billion, 20% of the firm’s value, aggressively priced (increasing overall market capitalization expectations from $5 billion to $6 billion from June to July 2016) showing there is still room for new entrants in the global messaging market.

CASE INTRODUCTION:COMPELLING, INTERDISCIPLINARY, BLENDED-LEARNING

LINE App Timeline

Primary Market

LINE App first launched in Japan in March 2011

LINE App reahes 100 million users in Japan in September 2012

LINE App reaches 200 million usersin Japan, now Japan's largest social network, in March 2013

LINE App tops 550 million users in 6 countries, with 150 million active accounts, in October 2014Grey Market LINE App CEO Takeshi dezawa announces dual listing IPO in January 2016

Secondary Market LINE App successfully lists 22 million shares on NYSE on July 14, 2016 and 13 million shares on TSE on July 15, 2016

LINE App at a Glanceon-line & off-line strategyelaborate and extensive sticker selectionSignficant market penetration in Japan, Taiwan, Indonesia and ThailandRevenue breakdown : 22% sale of cartoon stickers, 35% advertising, 35% from gamingCompetitors include Facebook (WhatsApp), Twitter (Twitter), Microscoft (Skype), Tencent (WeChat), Rakuten (ViberFuture growth : taxi booking, music streaming, mobile moneysources: Reuters on-line, June 10, 2016, WSJ on-line June 10, 2016 & Al-Jazeera YouTube July 14, 2016

CASE STRUCTURE CONTENT & SEQUENCING

• Discussion Chunks & Decision Points

Bloom Taxonomy applied to LINE App Case for 1st year MSc studentsKnowledge What is the market capitalization post-IPO? Did the Price / Earning ratio increase or decrease, why?

ComprehensionCan you explain what is happening when the initial offering is oversubscribed? The motives and consequences of a dual listing?

ApplicationHow would you organize information about shares denominated in two different currencies in a diversified portfolio of equity assets?

AnalysisWhy do you think the firm listed in two markets and what conclusions can you draw from this strategic option?

BLOOM TAXONOMY FRAMEWORK

DEPLOYING THE CASE ACROSS A RANGE OF ACADEMIC FIELDS• Investor Relations (M2)• Social Media & Networking (BBA)• Corporate Strategy (M2 & MBA)• Cross-Border Marketing (M2 & MBA)• …in the future: Fintech, Electronic Money &

Financial Disintermediation• Excel for Finance (BBA & M1)

DEMO ON BLOOMBERG TERMINAL

INVESTOR RELATIONS CLASS: STUDENT OUTPUT AND ASSESSMENT

Anam, from Pakistan, INSEEC Grande Ecole student Oskar, from Sweden,

Erasmus exchange student

Faniry, from Madagascar and Kelly,from BelgiumErasmus exchange students

INVESTOR RELATIONS CLASS: STUDENT OUTPUT AND ASSESSMENT

« I would have double-checked the numbers and figures being presented myself…I would have more skepticism

about sources… »

« Most of the LINE presentations were about popularity: meaning the cultural impact, with the number of users, the

services, the number of countries present. In a real-life situation, to suggest to invest or not in LINE I would have focused on the

financial aspect… »

#EXCELADDICTS FB PAGE & TOSAASSESSMENT

PROFESSORS AT THE FOREFRONT OF BMC

DELIVERING BLENDED LEARNING SOLUTIONS IN ENGLISH THROUGHOUT FRANCE

HERMANN DJOUMESSI, MA.FINTECH Social Media Consultant & Crypto Analyst:

• Master 1 IHECS (Brussels, Belgium)

• Master 2 London Metropolitan University (London, UK)

• Hootsuite Certified

• EXCEL TOSA Expert

• Bloomberg Market Concepts Certified

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