2nd Quarter FY2021
Financial Results
August 10, 2021
Vision Inc.
TSE 1st Section： 9416

2Q FY2021 Financial Results (Consolidated)(JPYmn, %)Item

FY2020/2Q
Results
AmountChangeComposition
ratio

FY2021/2Q
Results
AmountComposition
ratio

Sales

9,630

100.0

-985

8,644

100.0

Gross profit

4,822

50.1

-317

4,505

52.1

Operatingprofit or loss (-)-15-0.2+669

654

7.6

Recurring profit

660.7+614

680

7.9

Profit or loss (-)
attributable to ownersof parent-1,352-14.0+1,808

455

5.3

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.

1Q
2Q
3Q
4Q

1QSALES

2Q

17,732

3Q+31.3%

13,505

4Q

4,462

SEGMENT PROFIT OR LOSS ( -)3,301
+36.8%
430+51.5%+30.0%

10,392 3,589+31.8%

7,882

2,636

2,073

3,022

2,329

1,697
1,781
FY2016

2,226

5,084

3,929
4,109
2,898

2,505

3,089

4,075

FY2017FY2018FY2019-59.0%

7,278
1,371
1,272
1,286

3,865 -16.6%

2,349

3,347

FY2020 FY2021

1,593+39.7% 224
1,140680
245
494
295
146490
252

2,413
224

631
271

1,274

724

466

871

FY2018FY20191,515
FY2016FY2017(JPYmn)

-90
326
-347
-27-42

380
262
117

FY2020 FY2021

Performance Change
Information and Communications Service Business
Utilizing the strength of having multiple businesses (products/services) and sales channels, thebusiness has been favorable by responding flexibly to changes in the external environment.
Sales increase due to changes in business structure (Product sales: Increase in mobile communication equipment, OA equipment, etc.).
Segment profit is on the decrease due to a decrease in the unit price of business consignment fee (agency fee) because of the rise inelectricity retail prices and strengthened sales of in-house services (monthly fee).
Stock earnings and in-house services (monthly fee) as the revenue base (recurring revenues) are on the increase.

SALES

1Q
2Q
3Q
4Q

+15.2%

+2.2%

6,948

1,730
1,749
1,764
1,703

+9.4% 7,775

7,104
1,725
1,786

1,782
1,810

8,955
2,115

1Q
2Q
3Q
4Q

-1.7%8,806

2,139+14.4%

1,024

1,970
2,330

1,977
2,009
1,818

2,146

2,207

2,004

2,302

2,515

4,655 +3.0%

2192442,2972962,357

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

264

SEGMENT PROFIT(JPYmn)+11.5% 1,520+3.9%

1,172285

287316282+11.9% 1,363

1,218
212

188342335367
777

371
350

299482517

337296367410

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021-4.8%

FY2021 Financial Forecast Revision(JPYmn, ％)Items

Forecast
after revision

FY2020ResultChange

Ratio ofchange17,468

16,654+814+4.9

Cost of sales

8,260

7,860+399+5.1

Gross profit

9,207

8,793+414+4.7

Gross profit margin

52.7

52.8

-0.1

－

SG&A expenses

8,200

8,689-489-5.6

SG&A-to-sales ratio

46.9

52.2

-5.2

－

1,007
5.8
1,028

103
0.6
227+903+5.1+800+869.6－+351.1-1,183 +1,869

－

Sales

Operating profit

Operating profit margin
Recurring profit
Profit or loss (-) attributable toowners of parent

685

Full FY2021 Financial Forecast Revision
Assumptions of FY2021 forecast and business policies
External environment and business policy (overall)Spread of COVID-19 (including variants) in each country, vaccination status and its effects, impact on businessactivities of companies and shops, and overseas travel with a vaccination certificate, and other uncertainties areexpected to be continued.
While aiming to improve profitability and profit margin through flexible business operations with COVID-19, we will
aggressively develop new businesses and new services (including those for improved convenience) in the postcorona world, and carry out business activities to achieve growth that exceeds the growth potential before thespread of COVID-19.

“GLOBAL WiFi” Business
Reflect steady domestic demand and increased demand for “GLOBAL WiFi for Biz.”
Reflects the assumption of FY2021 forecast as announced on February 15, 2021, “Overseas travelers (outbound,inbound): After October 2021, it is 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 has been
excluded from the 4Q forecast.

Information and Communications Service BusinessReflect the current strong situation and the increase in in-house services (monthly fee).
Reflect the impact on FY2021 business performance following the start offering “Vision Denki” (sales: -JPY26mn,operating profit: -JPY166mn).

Initial Assessment Result in Conformity of Continued ListingStandards for New Market Segments
Initial Assessment Result in Conformity of Continued Listing Standards
for New Market Segments

ResultVision Inc. received “the Initial Assessment Result in Conformity of Continued ListingStandards for New Market Segments,” specified June 30, 2021 as the transition reference
date. We confirmed that each of the “number of shares outstanding,” “market capitalizationof shares outstanding,” “ratio of shares outstanding,” and “trading value” complies with thelisting standards of the prime market.
FutureSelection procedure to be listed on a new market segment, which is scheduled to begin inthis September, will be decided after careful discussions at the Board of Directors’ meeting.
We will proceed with the prescribed procedures for applying to select a new market segment.
To receive your support also in the future, we will continue to strive to disclose
information in a timely and appropriate manner, and pursue sincere IR to improve
corporate value over the medium to long term.

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
TeamSales
Shippingcenter

Corporate 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 theInformation 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) and the acquisition and installation ofequipment such as dome-shaped tents: approx. JPY1,200mn
Selection of land, equipment, and service, etc. is progressing smoothly toward the launch of the business.

Completely private space glamping fully equipped with air-conditioning, private toilet, and open-air bath for
all weather.
Images of glamping facilities, etc.

The Launch of an Ultra-High-Speed 5G Plan
- Competitive Advantage When Travel Market Recovered The launch of an ultra-high-speed 5G plan, a first in the Wi-Fi router rental industry.
The country and region where the service is offered first are Hawaii and the mainland USA, the most popular
destinations ever.
We will expand the service area to South Korea, China and other countries and regions when we are fully prepared.

Striving to provide quality services and networks and expand service areas continuously, we offer easy-to-use mobile
Internet connectivity around the world in order to contribute to business and sightseeing in the post-corona/withcorona world.

The Launch of Our New Power Service “Vision Denki“- Provide Products/Services Meeting the Customers Needs and the Times The launch of “Vision Denki,” a new power service that contributes to the reduction ofelectricity bills for all business partners.
Electricity is the lifeline for businesses. To use stable electricity with peace of mind because it is such an era. Make their wishesof such business partners a reality, not a fantasy.

“Energize Japanese companies.” “And energize all over Japan.”
Even after the electricity liberalization, we have cooperated with Power Producer and Suppliers (PPS) to support the reductionof electricity rate as a subscription agency, responding to the voices that “the rate system is difficult to understand and therate remains high after all.”We can expect that our Group will grow significantly in the future in asking for requests of many companies, shops and stores.
So, we become a new Power Producer and Supplier (PPS) and launch “Vision Denki” as a retailer.
From the perspective of SDGs, we contribute to decarbonization (carbon neutral) with Vision Denki + power saving by
replacing the air conditioner + LED cross-selling.
Revenue model will change from shot earnings (sales commission) through a subscription agency to stock earnings(monthly electricity charge) associated with the use of electricity by end users. We make efforts to increase future
profits while covering these temporary negative impact on our Group’s profits
with those of other businesses.

“Vision Denki”
covers all over Japan.
* Excluding Okinawa and remote islands.

Impact on Earnings due to the launch of Our New Power Service“Vision Denki“
The earnings of the business will decrease compared to the current shot earnings (sales commission)
through the subscription agency until the number of “Vision Denki” contracts are accumulated.
Expand the business in order to build a stable earnings base in the future, while covering the impact of this business on the entire
Vision Group.
Assuming that the sales/business profit change and the number of contracts (acquisitions) of “Vision Denki” are the same, see thetable below for comparison of business profits between the current subscription agency and “Vision Denki” and cumulative profit orloss (difference) change.
It is expected to be profitable in a single month in February 2023 and to be completely profitable from FY2024.
When electricity demand increases, such as in the summer, electricity charges (purchase costs) are expected to increase, and the business profit fluctuates
seasonally.

(JPYmn)Sales/business profit change (assumed)
Sales
Business profit

Comparison of business profits andcumulative profit or loss change (assumed)

7,605
5,298

22

2,998

-144

1,156

63

19420949
Subscription
agencyVision Denki-144
FY2021642
455420274
19-179FY2021

FY2022

FY2023

FY2024FY2025

22102

274

455

642

-144

-179

19420

949

-166

-448

-579

-340

422

Cumulative-179
FY2022102949FY2023

FY2024FY2025profit or loss(August 2021-)

New Power Service “Vision Denki“ARR (Annual Recurring Revenue) Change
Build a stable revenue base that is resistant to the effects of the externalenvironment.
Build a long-term stable revenue base (number of contracts x end-user electricity bills – electricity cost) by changing therevenue model from a subscription agency (number of contracts x agency fee unit price) to an in-house service (become aPPS and offer electricity).
ARR: Annual Recurring Revenue. Calculated by multiplying MRR (Monthly Recurring Revenue) as of each term-end by 12.
MRR shows stable profits that a company can repeatedly earn every month, and the table below (left) shows the gross profit change.

ARR (Gross profit, assumed)(JPYmn)Sales (assumed)

2,105+33.9%

7,605

1,572+43.5%+60.9%

5,298977+76.7%

+166%

+427%

451

2,998

85

+159%

FY2021 FY2022 FY2023 FY2024 FY2025

ARR
Number of contracts
as of term-end

85
1,841

451

977

1,572

2,105

9,717 20,473 32,516 43,543+1,725%

1,15663
FY2021

FY2022

FY2023

FY2024FY2025

Changes in Monthly Cost and Segment Profit“GLOBAL WiFi” BusinessProfits are gradually recovered by continuing low-cost operation and acquiring various
usage 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 the spread 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 to remain
thanks to the work style reform such as the introduction of teleworking, etc. (by combining office work and teleworking, etc.). It will be afactor for increasing profits compared to those in the period before the spread of COVID-19.
(JPYmn)

COST
1,156

1,093

(JPYmn)SEGMENT PROFIT OR LOSS (-)

FY2020
FY2021

225
178

777

703

672
584

548 542
439

687
545

67
29

415

102 99851210-19
Jan.

Jan.

Feb.

Feb.

Mar.

Mar.

Apr.

Apr.

May

May

Jun.

Jun.

2020

2021

2020

2021

2020

2021

2020

2021

2020

2021

2020

2021

SG&A expenses

591

244

572

243

439

264

328

278

340

242

314

260

Cost of sales292

176

313

158

209

263

203

373

226

404

223

400

210

19271

13

129

20

1020

1756

726

Overseas
telecom cost

-90-107-0-17 -3-2-88-182

Jan. Feb. Mar. Apr. May Jun.
(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.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

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.
FY2021/2Q cumulative is JPY480mn, which is progressing steadily.

730

In-house services(monthly fee)
Stock earnings

590

830

620

530

550

FY2015FY2016FY2017FY2018FY2019FY2020

50
0.5

80
0.8

130
1.3

190
1.9

330
3.3

470
4.7

300
3.0

470
4.7

460
4.6

460
4.6

420
4.2

400
4.0

360
3.6

170
1.7480

FY2021/2Q
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