3rd Quarter FY2021
Financial Results
November 9, 2021
Vision Inc.
TSE 1st Section： 9416

3Q FY2021 Financial Results (Consolidated)(JPYmn, %)Item

FY2020/3Q
Results
AmountChangeComposition
ratio

FY2021/3Q
Results
AmountComposition
ratio

Sales

13,108

100.0

+283

13,392100.0

Gross profit

6,824

52.1

-5

6,818

50.9

Operating profit

58

0.4+955

1,013

7.6

Recurring profit

167

1.3+874

1,042

7.8

Profit or loss (-)
attributable to ownersof parent-1,226-9.4+1,928702

5.2

“GLOBAL WiFi” Business
Performance Change “GLOBAL WiFi” Business
Various domestic usage needs steadily acquired. Making efforts to focus on social environment with
COVID-19 and post-corona world.
Teleworking (The number of extension of the rental period is increasing because the state of emergency is newly declared, etc.).
Sales of standby type “GLOBAL WiFi for Biz” for corporate customers are favorable by making a proposal for teleworking (The number ofcontracts and communication usage increases).
Acquire various usage needs (teleworking, moving, hospitalization, business trip, combined use with home internet, various events, etc.).
Sales and segment profit increases by entrusting the app confirmation work, which is part of quarantine measures work carried out by theairport quarantine station.
1QSALES

1Q
2Q
3Q
4Q

3Q

+31.3%+36.8%

4Q

4,462+51.5%

1,593

5,084 -59.0%
7,882 2,636
7,278
3,929

+39.7%+31.8%

2,073

2,329
1,697
1,781
FY20162,898

6,493+9.9%
1,371
4,109
1,272 2,628

3,089

4,075

3,022
2,226
2,505
FY2017FY2018

1,286
3,347

2,349

1,140
245494146
252224680295490

224

631
271
466

1,274
724
871

-90

326-347

749
368
262
117

-27

1,515

FY2019 FY2020 FY2021

430

2,413

+30.0%

10,392 3,589(JPYmn)

3,301

2Q

17,732

13,505

SEGMENT PROFIT OR LOSS (-)

FY2016FY2017FY2018-42FY2019 FY2020 FY2021

Information and Communications Service Business
Performance Change
Utilizing the strength of having multiple businesses (products/services) and sales channels,
strong sales have been recorded by responding flexibly to changes in the external environment.
Sales increase due to changes in business composition (products for product sales business: mobile communication equipment, OAequipment, etc.).
While the semi-conductor chip shortage has affected the stock of OA equipment, we have purchased chips from multiple manufacturers(the increase in unit price covers the decrease in units sold).
Segment profit is on the decrease due to a decrease in the unit price of business consignment fee (agency fee) associated with the risein electricity retail prices, strengthened sales of in-house services (monthly fee), and launch of Vision Denki.
Stock earnings and in-house services (monthly fee) as the revenue base (recurring revenues) are on the increase.
1Q2Q
3Q
4QSALES
+15.2%
+2.2%

+9.4%

6,948 7,104
1,730

1,725

7,775

1,977

1,782

2,009

1,764

1,703

1,810

-1.7%

8,955 8,806
2,115

2,139

1,970

1,749 1,786

1,818

1Q
2Q
3Q
4Q

4,655

+0.9%

2,330 2,146 2,068
2,207

2,004

2,302

2,515

2,297

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021(JPYmn)1,520+11.5%+11.9% 1,363
+3.9%
335
1,218
188
1,172
+14.4%
212
1,024
1,024285
342 367-13.5%
219
246371287
244299350
296

2,357

SEGMENT PROFIT

264316282

367337296

482517410

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

FY2021 Full-Year Financial Forecast
Assumptions of FY2021 forecast, progress, and business policies
External environment and business policies (overall)
The spread of COVID-19 (including its variants) in each country, vaccination and its effects, the impact on business activities of companies and shops, andoverseas travel with a vaccination certificate, and other uncertainties are expected to be continued.
While aiming to improve profitability and profit margin through flexible business operations co-existing with COVID-19, we will aggressively develop newbusinesses and new services (including those for improved convenience) in the post-corona world, and carry out business activities to achieve growth thatexceeds the growth potential before the spread of COVID-19.

Explanation for future forecast information
We achieved operating profit and other profits in the full-year consolidated earnings forecast for the fiscal year in FY2021/3Q (announced on
August 10, 2021). For FY2021/4Q, due to the uncertain impact of COVID-19 (including its variants) on the Group’s business activities as well
as aggressive investments for business growth in the next fiscal year and beyond (new businesses, new services, promotion expenses for therebuilding of the “Global WiFi” business, purchase of various equipment, etc.), the Company plans to leave its full-year forecast for 2021
unchanged.

“GLOBAL WiFi” Business
Reflecting steady domestic demand “GLOBAL WiFi for Biz.” ⇒ New contracts and communication service usage are on the increase. The increasereflects the assumption of FY2021 forecast as announced on February 15, 2021, “After October 2021, overseas travelers (outbound, inbound) are expected
to recover by about 25% compared to that in 2019.” On the other hand, the continuation of temporary contract work during the COVID-19 pandemic is still
uncertain and thus has been excluded from the 4Q forecast. ⇒The number of overseas travelers in September 2021 is expected to decrease by
97.0% for outbound and 99.2% for inbound compared to in 2019 (estimate based on published data by JNTO). As of the time of publication ofthis report, temporarily contracted work relating to COVID-19 efforts are still ongoing.

Information and Communications Service Business
Reflecting the current strong situation and the increase in in-house service contracts (earn monthly fee). ⇒ Recurring revenue (stock revenue and inhouse services) increases steadily. The FY2021 business performance is impacted by the launch of “Vision Denki” service (sales: -JPY26mn, operating
profit: -JPY166mn). ⇒ The number of Vision Denki contracts is steadily increasing. The business is expanding while preparing for a sharp rise inelectricity prices (procurement costs).

Policy on Growth Strategy
Existing businessNew business / Service building

Increase productivity.
PolicyKey phrase

Sales channelBusinessstructure

Adapt to online environment, so-called the NewNormal.
Strengthen up-selling and cross-selling(including online negotiations).

Three-pillar business structure that responds tochanges in the times.

✓ Provide products and services meeting the ✓ Adapt to environment with COVID-19, soneeds of customers and the times.
called New Normal.
✓ Build and strengthen sales system (online). ✓ Utilize sales channels and business✓ Strengthen up-selling and cross-sellingstructure.
✓ Utilize the customer base.
(including online negotiations).
✓ Brush up the revenue structure.
✓ Service that responds to customer✓ Strengthen and expand in-house services.
feedback.
✓ Regional revitalization.

CLTWEB
marketing

Shops
Airport counters etc.

Customer baseDevelop a new business as a thirdpillar.

Startups, growing
corporate customers

Customer Loyalty
Team

Sales
Shipping
centerCorporate customers
working with overseas
companies

Individual users by corporate customers

Online / Offline

Partner

Global affiliatedcompanies

including travel
agencies and OTA

Governments /Individual customers
local governments,
who like traveling*including inboundSchools, etc.

Glamping Business- Develop a New Business as a Third Pillar Launch a “Glamping Business” as a business that will grow into the third pillar next to the Information
and Communications Service Business and the “GLOBAL WiFi” Business.
Launch the business in the first half of 2022 (planned).
Costs and expenses for acquisition of land for business use (including leasing) andthe acquisition and installation of equipment such as dome-shaped tents:
approx. JPY1,200mn
Selection of land, equipment, and service, etc. is progressing smoothly toward thelaunch of the business.
Release of teaser site ( https://www.vision-net.co.jp/glamping/ )Completely private space glamping fully equipped with air-conditioning,private toilet, and open-air bath for all weather.
Images of glamping facilities, etc.

Launch of “World eSIM”– Gaining Competitive Advantage When Travel Recovers –Launch of an eSIM service, “World eSIM”, that can be used in over 120 countries
around the world.
You don’t have to carry your bulky Wi-Fi router device.
Like for rental Wi-Fi routers, there is no need to stop at an airport counter to return or pick up.
Application for “World eSim” is available online, so you can do it both from home and abroad.
Can be used for an assortment of needs.
When multiple users are using multiple kinds of devices (smartphones, tablets, laptops, etc.): Mobile Wi-Fi Router
RentalWhen a single user is using their smartphone: World eSIM
Since SIM-free mobile phones have long been in Europe and the United States, we plan to actively acquire customers
from these areas, as they have a strong tendency to purchase SIM cards on the spot while traveling due to phone SIM
cards being unlocked which has only been the case in Japan in the recent past.

Acquisition of adval Corp. to Make It a Subsidiary- Provide Products/Services Responding to Customer Needs and the Times Acquire adval Corp., a company that offers its rental space (for conferenceroom/teleworking space) for BtoB use at more than 200 locations throughout thecountry on a monthly flat-rate basis, as a subsidiary through simple share delivery.
Scheduled date of share delivery (effective date): December 1, 2021

For BtoB use, sales strength (our Group) x planning strength (adval) “Promotion ofrental conference rooms/teleworking space subscriptions”
By maximizing the combined customer base, products and services, business partners, know-how, and more of bothcompanies, we can expect sales improvement, input efficiency, and reduced costs, judging that they will lead tomedium- to long-term improvement of corporate values. This is why we decided to make adval a subsidiary.

Changes in Monthly Cost and Segment Profit“GLOBAL WiFi” BusinessProfits are gradually recovered by continuing low-cost operation and acquiring varioususage needs.
Acquires actively various needs for using mobile Wi-Fi router (“GLOBAL WiFi for Biz”, etc.).
Build a business structure that will generate higher profits and profit margins after overseas travel recovery than those before thespread of COVID-19 (FY2019) by reviewing various costs and expenses, and improving operational efficiency.
Although various domestic usage needs are expected to decrease in the post-corona world, a certain number of needs seems toremain thanks to the work style reform such as the introduction of teleworking, etc. (by combining office work and teleworking,etc.). It will be a factor for increasing profits compared to those in the period before the spread of COVID-19.
SEGMENT PROFIT OR LOSS (-)(JPYmn)

COST
1,156

FY20201,093

FY2021

225
178
777

584

548542

755

752

703

672

439

102 99

735

687

67
29

545

415

163

455

428

418

123
85-90
Jan Jan Feb Feb Mar Mar Apr Apr May May Jun Jun

JulJul Aug Aug Sept Sept

20202120

2120

2120

2120

2120

21202120

21

SG&A expenses

591 244 572 243 439 264 328 278 340 242 314 260 273 258 279 255 276 266

Cost of sales

292 176 313 158 209 263 203 373 226 404 223 400 143 463 146 475 168 438

Overseas telecom cast 210 19 271 13 129 2010201756

72623032511301001210-1921(JPYmn)-0-17 -3-2-88-107-182
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

(Note) The figures are different from those of the segment results because they are monthly changes in profit and loss which do not include closing.

Gross Profit Composition
Information and Communications Service Business
Utilizing the strength of having multiple businesses (products/services) and sales
channels, we have responded flexibly to changes in the external environment to record
strong sales.
Sales of mobile communication devices (for telework or switching over to smartphones, etc.) are strong.
The composition ratio of eco-solution business decreased because the unit consignment fees (agency fee) went down following
the temporary rise in electricity prices and the launch of our electricity service “Vision Denki” (stock earnings).

3Q FY2020 Cumulative

3Q FY2021 Cumulative

0.6%

1.0%

2.4%
11.3% 15.3%

2.7%
7.6% 13.5%
11.2%

11.3%

JPY
3,533mn 20.4%

27.9%

JPY
25.6%
3,626mn
28.6%

11.0%

Fixed-line communication
Internet media

Mobile communication
Eco-solution

Broadband

9.7%

Office automation equipment

Construction related(Note) The figures are different from those of the segment results because they are monthly changes in profit and loss which do not include closing.

OtherStock Earnings and In-house Services (Monthly)
Gross Profit Change Information and Communications Service Business
Strengthen stock earnings and in-house services (monthly fee), which will become a stable earnings
base in the long run.
Strengthen sales of in-house services (monthly fee) since FY2019.
(JPYmn)Strengthen sales and expand services to reach the profit of JPY1bn.
FY2021/3Q cumulative is JPY740mn, which is progressing steadily.

830

730

In-house services(monthly fee)
Stock earnings

590

620

740

530

550

FY2015FY2016FY2017FY2018FY2019FY2020

50
0.5

80
0.8

130
1.3

190
1.9

330
3.3

470
4.7

480
4.8

470
4.7

460
4.6

460
4.6

420
4.2

400
4.0360
3.6

260
2.6

FY2021/3Q
Cumulative

Stock earnings: Revenue from continuation fee associated with subscription agency contract in Information and Communications Service Business and maintenance fee in OA equipment sales businessTo Contribute to the Global Informationand Communications Revolution