1st Quarter FY2018

Financial Results

May 10, 2018
Vision Inc.
(1st Section of the Tokyo Stock Exchange, code： 9416)

1Q FY2018 Financial Results• 1Q FY2018 Overview of Financial Results• FY2018 Outlook of Financial Results• Progress made in FY2018• Growth Strategy• APPENDIX
–
–
–
–
–
–

Group Structure
Performance Data
“GLOBAL WiFi” Business Market Size
“GLOBAL WiFi” Business Customer Attributes(Corporate・Individual) / (New・Repeat) / (By Gender / Age・Past Cumulative Total)
Information and Communications Service Business Market Size
Overview of Stock Options with Charge Issuance• Business Summary
Copyright(C) 2018 VISION INC. All Rights Reserved.

2

1Q FY2018 Overview of Financial Results

Copyright(C) 2018 VISION INC. All Rights Reserved.

3

1Q FY2018 Overview of Financial Results (Cons.)
Updated record highs for both sales and each profit.
(JPYmn, %)FY2018/1Q Actual result

Account title

AmountComposition
ratio

Increase or decrease

AmountIncrease or
decrease ratio

4,922

100.0

+595

+13.8

4,326

100.0

+838

+24.1

2,930

59.5

+409

+16.2

2,521

58.3

+519

+25.9

736

15.0

+222

+43.4

513

11.9

+200

+64.0

745

15.1

+241

+47.8

FY2017/1Q Actual result

504

11.7

+179

+55.1

Net income attributable toparent company shareholders

514

10.4

+172

+50.4

FY2017/1Q Actual result

341

7.9

+129

+61.0

Sales
FY2017/1Q Actual result

Gross profit
FY2017/1Q Actual result

Operating profit
FY2017/1Q Actual result

Recurring profit

Copyright(C) 2018 VISION INC. All Rights Reserved.

4

Operating Profit Increase Factor(JPYmn)+186

Gross profit increase
due to increased sales
Cost ratio ▲1.3 points

+186

+595

SG&A-to-sales
ratio▲1.8 points

Gross profit+JPY409mn(+16.2%)

Operating profit margin 15.0%(+3.1% points YoY)
– Sales are strong.
– “GLOBAL WiFi” Business：
The effects of cost reduction
measures and productivity
improvement measures continue tocontribute to performance.
• Reduce data-line procurementcost• Utilize CLOUD WiFi
– Improve data usage efficiency– Reduce shipping process• Restrain labor costs rise

Operatingprofitmargin11.9％
FY2017/1Q– Utilize AI for inquiries– Add automatic pick-up locker“Smart Pick-up” etc.

736

513
Operating profit+JPY222mn(+43.4%)

Operatingprofitmargin15.0％

Increase sales Increase cost Increase SG&A FY2018/1Q– Information and Communications
Service Business：
Improve profitability due to making
more profitable services main andup/cross selling strategy.

expenses

Copyright(C) 2018 VISION INC. All Rights Reserved.

5

Segment Actual Result(JPNmn, %)Sales

FY2017/1Q
Actual result

AmountAmountIncrease or decrease
Increase or
decrease ratio

Amount“GLOBAL WiFi”

3,089

2,505

+583

+23.3

Information andCommunications Service

1,818

1,810

+8

+0.4

Subtotal

4,907

4,316

+591

+13.7

Others

14

10

+4

+42.5

Adjustment amount

－

－

－

－

Total (Cons.)

4,922

4,326

+595

+13.8

“GLOBAL WiFi”

701

466

+235

+50.4

22.7

18.6

+4.1

－

296

282

+14

+5.0

16.3

15.6

+0.7

－

Subtotal

997

748

+249

+33.3

Others

△28

△23

△4

△20.5

Adjustment amount

△232

△211

△21

△10.1

736

513

+222

+43.4

Profit margin

Information andCommunications Service
Segment
profit

FY2018/1Q
Actual result

Profit margin

Total (Cons.)

Copyright(C) 2018 VISION INC. All Rights Reserved.

6

“GLOBAL WiFi” BusinessTransition of Performance
Busy season. Capture student trip (graduation trip) and foreign travelers visiting Japanto see cherry blossoms.
––

The rental number for both new and repeat use increases steadily.
Improve profitability by continuously improving cost efficiency and operation cost measures.
••

Utilize CLOUD WiFi (increase shipment ratio), reduce data-line usage purchase unit price by volume
discount.
Measures for inquiries utilizing AI (call center cost control), automation of operation, simplification,
labor saving.

1Q
2Q
3Q
4Q

SALES

12,951(Forecast)+24.6%

1Q
2Q
3Q
4Q

SEGMENT PROFIT(JPYmn)1,946(Forecast)

10,392+22.2%

1,593+31.8%

7,882+30.6%

6,035
1,602

2,073

+39.7%

9,862

1,140

3,022

+92.2%

245

224
1,245
631

2,329

1,826
1,308

2,636

1,697

1,297

1,781

FY2015FY20162,226 +23.3%

2,505
FY20173,089
FY2018

593

494

256
60

146

114

162

252

FY2015FY2016

271 +50.4%466
FY2017701

FY2018(Attention) Regarding the quarterly results in FY2015, year-on-year ratio is for reference, because we do not prepare for the quarterly financial statements.

Copyright(C) 2018 VISION INC. All Rights Reserved.

7

Information and Communications Service BusinessTransition of Performance
Achieve to increase sales and profits while improving productivity. Secure stable profit.
Continue to perform well due to acquiring our main targets (newly established companies,
venture companies).
Accumulate continuous dealings by CRM.

––

Improve profitability by up/cross-sell strategy.

•– Electric power service “Haruene Denki” subscription agency (cross selling) is strong.
1Q
2Q
3Q
4Q

SALES
+7.9% 6,948

7,104+5.6%
+2.2%

6,440
1,673

1,601

7,504

1,730

(Forecast)

1,725

1Q
2Q
3Q
4Q

SEGMENT PROFIT(Forecast)+12.5%+14.4% 1,172+13.4%

1,024

903
1,749

5,686

1,786

1,319 (JPYmn)

285

219

214
244

287

1,023

221
1,629

1,764

1,782
+0.4%

1,536

1,703

1,810

1,818

FY2015FY2016FY2017FY2018

296

316

264

282

296

FY2016FY2017FY2018269

198
FY2015+5.0%(Attention) Regarding the quarterly results in FY2015, year-on-year ratio is for reference, because we do not prepare for the quarterly financial statements.

Copyright(C) 2018 VISION INC. All Rights Reserved.

8

Consolidated Balance Sheet(JPYmn, %)FY2018/1Q

FY2017Compared to the previous
consolidated fiscal year end

AmountAmountIncrease or
decrease

Increase or
decrease ratio

AssetsCurrent assets

9,072

8,995

+76

+0.9

6,250

6,256

△6

△0.1

2,825

2,488

+336

+13.5

Tangible fixed assets

1,083

859

+224

+26.2

Intangible fixed assets

639

590

+48

+8.2

1,101

1,038

+63

+6.1

11,897

11,483

+413

+3.6

2,924

2,895

+29

+1.0

Fixed liabilities

1

2

△0

△35.7

【Total liabilities】

2,925

2,897

+28

+1.0

8,971

8,586

+385

+4.5

75.2

74.6

+0.6

－

Cash and deposit
Fixed assets

Investments and other assets【Total assets】
Liabilities
Current liabilities

Net assets【Total net assets】
Equity ratio

Copyright(C) 2018 VISION INC. All Rights Reserved.

9

FY2018 Outlook of Financial Results

Copyright(C) 2018 VISION INC. All Rights Reserved.

10

FY2018 Forecast of Financial Results
Sales: +17.3％ YoY, and Operating profit: +25.9％ YoY.
(JPNmn, %)FY2018 Forecast

Account title

AmountIncrease or decrease

Composition
ratio

AmountIncrease or
decrease ratio

20,599100.0+3,044+17.3

17,554100.0+2,711+18.3

12,10358.8+1,942+19.1

10,16057.9+1,538

+17.8

2,252

10.9

+463

+25.9

1,788

10.2

+498

+38.6

2,254

10.9

+459

+25.6

FY2017 Actual result

1,795

10.2

+496

+38.3

Net income attributable toparent company shareholders

1,520

7.4

+311

+25.8

FY2017 Actual result

1,208

6.9

+394

+48.5

Sales
FY2017 Actual result

Gross profit
FY2017 Actual result

Operating profit
FY2017 Actual result

Recurring profit

Copyright(C) 2018 VISION INC. All Rights Reserved.

11Outlook for the Full Year (Quarterly Transition)(JPYmn, %)１Ｑ

FY2015FY2016FY2017

1Q… Actual result
2Q-4Q… Forecast

３Ｑ

４Ｑ

FY

Sales

2,836

2,940

3,429

3,277

12,485Composition ratio (vs. FY)

22.7

23.6

27.5

26.3

－

Operating profit

202

169

304

128

804

Composition ratio (vs. FY)

25.1

21.1

37.8

16.0

－

Operating profit margin

7.1

5.8

8.9

3.9

6.4％

Sales

3,487

3,465

4,083

3,807

14,843Composition ratio (vs. FY)

23.5

23.3

27.5

25.7

－

Operating profit

313

245

517

214

1,290

Composition ratio (vs. FY)

24.3

19.0

40.1

16.6

－

Operating profit margin

9.0％

7.1

12.7

5.6

8.7％

Sales

4,326

4,024

4,827

4,377

17,554Composition ratio (vs. FY)

24.6

22.9

27.5

24.9

－

Operating profit

513

336

688

249

1,788

Composition ratio (vs. FY)

28.7

18.8

38.5

13.9

－

Operating profit margin

11.9

8.4

14.3

5.7

10.2

4,922

4,839

10,837

20,599Composition ratio (vs. FY)

23.9

23.5

52.6

－

Operating profit

736

253

1,263

2,252

Composition ratio (vs. FY)

32.7

11.2

56.1

－

Operating profit margin

15.0

5.2

11.7

10.9

Sales

FY2018２Ｑ(Attention) Regarding the quarterly results in FY2015, year-on-year ratio is for reference, because we do not prepare for the quarterly financial statements.
12
The figures for FY2018/2Q are figures minus 1Q actual results from the first half forecast.
Copyright(C) 2018 VISION INC. All Rights Reserved.

Segment Forecast•“GLOBAL WiFi” Business： Sales +24.6%, and Segment profit +22.2%.

•

Information and Communications Service Business： Sales +5.6%, and Segment
profit +12.5%.
(JPNmn, %)Sales

FY2017
Actual result

AmountAmountIncrease or decrease
Increase or
decrease ratio

Amount“GLOBAL WiFi”

12,951

10,392+2,559+24.6

Information andCommunications Service

7,504

7,104

+400

+5.6

20,456

17,496+2,959

+16.9

142

58

+84

+144.9－－－－Total (Cons.)

20,59917,554+3,044+17.3“GLOBAL WiFi”

1,946

1,593

+353

+22.2

Information andCommunications Service

1,319

1,172

+147

+12.5

Subtotal

3,266

2,765

+500

+18.1

Others

△11

△102

+91

+89.1

△1,002

△874

△127

△14.6

2,252

1,788

+463

+25.9

Subtotal
OthersAdjustment amount

Segment
profit

FY2018
Forecast

Adjustment amount
Total (Cons.)

Copyright(C) 2018 VISION INC. All Rights Reserved.

13

Progress made in FY2018

Copyright(C) 2018 VISION INC. All Rights Reserved.

14

FY2018 Priority Policy (Progress in 1Q)•

Promote efforts to realize this year’s slogan “Challenge to evolution ～Chapter 2～”.
– Differentiate by expanding business and monetizing peripheral business.
– Realize to lead the industry overwhelmingly (productivity, market share, profit).
Expansion

Utilization(Further develop the market)(Utilize customer foundation)〇“GLOBAL WiFi” Business・Build a system for handling online orders just before
departure・Acquire customers on departure day that we havemissed so far ＝ Net increase
・Promote corporate users introducing “Global WiFi for Biz”
・Solutions for travel agencies and related operators
・ Integrate into travel products by utilizing CLOUD
WiFi (offer wholesale + media functions)・ Services for foreign travelers visiting Japan are strong〇Travel Related Service Platform・ Increase sales in media for foreign travelers visiting Japan・ Evaluated the features (direct delivery, attributebased measures etc.), increase companies thatadvertisement is issued, and continued customers
・ Pick-up reservation and service (scheduled for thisautumn)〇Information and Communications Service Business・Expand inflow channels, “BIMAKE” website(Vision Business Market) etc.

〇Information and Communications Service Business
・Launch high-demand services
・Expand electric power service “Haruene Denki”
subscription agency
・Launch of in-house developed services is good(workflow system, SFA etc.)

Stability (Improve profitability)〇“GLOBAL WiFi” Business〇Whole Company
・Measures to improve sales efficiency
・By introducing RPA, promote routine work labor saving
・Priority efforts on stable base ... Repeat users, corporate users
etc.
・Reduce cost / SG&A expenses
・CLOUD WiFi introduction ratio … Approx. 67% of total shipment＝ Improve data-line usage efficiency, and shipping operation
efficiency

Copyright(C) 2018 VISION INC. All Rights Reserved.

15

Utilizing CLOUD WiFi (Improve Profitability)••

A Wi-Fi router equipped with next-generation communication technology that manages
SIM on the cloud.
Labor saving of shipping operation (= Shipment related cost down).
–•

Increase to approx. 67% of shipping Wi-Fi routers (As of December 2017：approx. 50％).

Develop “GLOBAL WiFi for Biz” for corporate customers.

–

Keep it at the customer‘s place ⇒
Order

–
–

•

Receive

ReturnDomestic (Japan) internet connection available.
Plan to offer for individuals as well.

Solutions for travel agencies and related operators
integrated into travel products.

Store SIMs all over theworld on the cloudConnect to a
network in Korea

Internet anywhere in the world
with one device CLOUD WiFi technology
With next-generation communication
technology to manage SIM on the cloud,
telecommunication carriers all over the world
can be allocated without physically insertingSIM.

Connect to a
network in France

Copyright(C) 2018 VISION INC. All Rights Reserved.

Connect to a
network in USA

16

Pick-up Reservation and Service(Travel Related Service Platform Expansion)
Utilization(Utilize customer foundation)•••

By utilizing the customer foundation of“GLOBAL WiFi” Business (overseas travelers
including foreign travelers visiting Japan), a
part of the concept of “Travel Related
Service Platform” that offers useful
information and services to solve problems
during overseas travel.
Target customers of Information andCommunications Service Business and newcustomers, too.
Domestic：––

Developed by our group company.
Start from Tokyo.
••

Overseas：–•

Plan to develop in major cities including partner
development.

Utilize “SmartRyde” by DLGB Inc., a capitaland business alliance partner.

Scheduled to start this autumn.

Copyright(C) 2018 VISION INC. All Rights Reserved.

17

Smart Strategy
Automatic delivery locker

Self check-in KIOSK terminal(Multi-language available,
settlement function)

Immediate customer
identification counter(QR code reception counter)

Reception

SmartPickup

SmartCheck

SmartEntry

Shorten waiting time

No congestion

Improve CS

Standby

Improve convenience

Increase sales

Evolve to more convenient, comfortable, relieved counters that meet each customer’s needs,
responding to the increase in the number of rental (delivery) and optional services(compensation service, accessory etc.), for Japanese traveling overseas and foreign travelers
visiting Japan.
Copyright(C) 2018 VISION INC. All Rights Reserved.

18

Online Order System just before Departure(Smart Strategy × CLOUD WiFi × Database）

CLOUD WiFi

Smart Strategy

Collaboration

Database

Collaboration

Collaborate with each effort to further improve convenience

Acquire customers on departure day that we have missed so far⇒ Increase number of users※Respond to WEB application in front of the airport counter instantly incollaboration with the database.
Copyright(C) 2018 VISION INC. All Rights Reserved.

19

Information and Communications Service Business
Enhance distribution channel / Enhance products, services, andbusiness models•「BIMAKE （Vision Business Market）」
https://vision-bizmarket.com/– “Comprehensive support website for companies” that fully supports all companies’ business.
– For startup, small and medium-sized, and venture companies. Also attract customers whoare preparing to establish company.
– Offer our services and tie-up partner’s products with useful information.

Copyright(C) 2018 VISION INC. All Rights Reserved.

20

Growth Strategy

Copyright(C) 2018 VISION INC. All Rights Reserved.

21

Medium-Term Growth Image
Steadily promote the growth strategies.
• “GLOBAL WiFi” Business
Customer Foundation– Expansion (Market development = Growth at each stage, global expansion)– Stability (Improve profitability)– Utilization (Business development = Travel related service platform)•

Information and Communications Service Business– Enhance channel.
– Enhance products, services, and business models.
“GLOBAL WiFi”
Travel related
service platform【3rd stage】 Overseas⇒Overseas【2nd stage】 Inbound【1st stage】 OutboundInformation and Communications
ServiceEnhance channel
Enhance product, service, business model
Copyright(C) 2018 VISION INC. All Rights Reserved.

22

Our Core Strategies••

Niche & Focus
strategy

Price & Quality
leadership strategy

Discover the challenges
born in the niches of theevolution in informationand communications, anddevelop new markets.
Focus management
resources on carefully
selected targets, andrefine our services.

• Overseas travelers
 Startup companies••

Production efficiency isthoroughly pursued.
Realized by improving
organizational structure
and business speed.
While maintaining highquality of service,
demonstrate pricecompetitivenesssurpassing competitors.

 Productivity, priceadvantage
 Service quality evaluation
Copyright(C) 2018 VISION INC. All Rights Reserved.

Up/Cross selling
strategy••

Pick up new needs for
information andcommunications services
and continuously offer
services at reasonable
prices at the right time.
Build a long-term
relationship withcustomers.
 Original CRM
 Stock business23

“GLOBAL WiFi” BusinessBusiness Model, Competitive Advantage

Maximum cost benefits ▲８９．９％

Less Expensive•
Fixed-rate

Available in over 200 countries and regions worldwide, leading the industry in thenumberHigh-speed communications in partnership with telecom carriers around the world•

Comfortable •Secure, and 47 support bases available 24 hours a day, 365 days a year, aroundthe world
Number of airport counter is the industry’s largest class•

Corporate Sales•

Number of users is the industry’s largest classData
communication
service

Payment

Direct website
Apps
Affiliates
Corporate sales
Partners
Airport counters

Shipping
ReturnEnd Users

Worldwide
telecommunications
companies

Customer •Uptake ability of corporate needs

Rental fees

Copyright(C) 2018 VISION INC. All Rights Reserved.

Travelers' Choice 2014/2016
1st place in the mobile
Wi-Fi router category

Payment

Settlement service
providers

Safe / Secure•
Counter

300 yen/day～ * Japanese cellphone companies' fixed-rate discount ratio

Vision Group

Areas

–

24

Compare How to Connect the Internet Abroad•••“Global WiFi” “NINJA WiFi” is the best way due to safe, secure, comfortable, andless expensive.
Benefits not only for travelers but also for business use.
The convenience of renting Wi-Fi router for trip has been recognized even in areas
other than Japan, mainly in Asia.
* Created by our research and standard

How to Connect

Price

Area

Speed

Management

Security

○

○

○

○

○

Based on the best quality network in each local area. Low price, secure, safe,
available to connect anywhere. Easy to set-up, easy to manage.

Roaming

×

△

△

○

○

Problem with price. (From JPY1,980 to JPY2,980/day. Maybe charged even more.)

Prepaid SIM

△

△

○

×

○

Need to know how to manage. (Set-up, activation, recharge, etc.)

Wi-Fi Spot

(Hotel, Café, etc.)

○

×

△

○

×

Problem with security (hacking), coverage (not available when moving).
Copyright(C) 2018 VISION INC. All Rights Reserved.

25

“GLOBAL WiFi” Business

Growth Story“GLOBAL WiFi” penetration ratio (Japan) ※Overseas use share (Outbound)
Domestic use share (Inbound + Japanese)
Share in the Japanese market (Out + in)➂“Utilization” customer foundation/
Develop new business

11.7%

Travel related service platform

8.3%
6.4%
4.4%
4.7%

2.0%
0.4%
0.3%
0.0%

3.5%

2.7%
0.7%

1.4%
0.2%

Useful information (Media)

5.8%

1.2%

2.1%

●
●

1,650,969
62,615

Rental number ※Guidebook

Video

2.2%

Useful services

Facility

Overseas business (Except for use in Japan,
Overseas ⇒ Overseas)
Domestic use (Inbound + Japanese)

285,708①“Expansion”
customerfoundation/
Market1,144,045

Overseas use (Outbound)

66,556development

190,665

516,199
17,73435,512
241,737
10,52055,507 7,511
462,953
6,236
223,706244
49,027FY2012FY2013

FY2014

783,050
43,66990,906etc.

Translation
deviceOther services
will be offered.

➁“Stability” business foundation/
Improve profitability
Accumulate repeat users

1,302,646

High loyalty customer accumulation CRM ⇒ Suppress promotion expenses,
stable revenue＊Repeater ratio ... 52% of orders

Capture corporate demandHigh ARPU, less seasonality, frequent repeat* FY2018/1Q corporate utilization ratio ... Rental number 37.3%, amount
46.1%

886,824
648,475

Increase in sales, cost control, productivity improvement
Increase ARPU (up/cross selling), improve cost efficiency/SG&A expenses ratio<Reference> Segment profit margin* FY2017/1Q 18.6% → FY2018/1Q 22.7% (+4.1 points)

FY2015FY2016FY2017※ Created from Japan Tourism Agency material by us

Copyright(C) 2018 VISION INC. All Rights Reserved.

26

Travel Related Service Platform
Use existing customer foundation and offer useful information/service to solve
problems during overseas travel.
FY2017 Japan total approx. 2.69mn people/18.83mn nights

Overseas
travelers

Outbound (approx. 2.08mn people/14.56mn nights) + Inbound (approx.
0.61mn people/4.27mn nights)＊FY2017 actual results, our research

Advertising
revenue
improvement
GuidebookUseful services

Useful information (Media)
Promotional
materials

Video

Facility・Counter

SNS

ARPU
improvement

Email
Rental service of wearable
translation device etc.

Insurance Coupons

Shop &
Duty-freeshop

Hotel &
Minpaku

Tours

RentalTouristcars
Gourmetattractions
limousine

Payment platform

Guide customers to allied partners
Copyright(C) 2018 VISION INC. All Rights Reserved.

Golf
courses《Reference》
FY2016 actual results:
approx. 1.92mn people/13.44mn nights
・Outbound... approx. 1.42mn people/9.94mn nights
・Inbound… approx. 0.5mn people/3.5mn nights
27

Travel Related Service Platform•

Travel advertising media
Advertising media using contact points for users of “Global WiFi”, “NINJA WiFi”,
and other affiliated services of our overseas partners.
– Reachable “directly” to significant overseas travelers••“Surely” contact your target overseas travelers. ※1
Total 7.4mn people a year. ※2
Our overseas bases andoverseas partners

From Japanto overseas＋

1.5mn people
a yearFrom Overseas
to Japan＋

From Korea, China,
Thailand to overseas

3.9mn people

2mn people

a year ※3

a year ※4＝ Total 7.4mn people– Possible to approach according to travelers’ behavior scene•

Provide various media for each contact point.

•

According to attributes, make optimal communication at each scene before travel/during travel/after travel.
Order Wi-Fi routeron the Web

Wi-Fi
Customer DB

Return the
Wi-Fi router

Pick up a Wi-Fi router at our airport counter※1

Not correspond to visitors to some countries and regions.
(We select the countries and regions where we expect advertisement effect.)※2 As of FY2017※3 Incl. our overseas bases and overseas partners ※4 Destination：Excl. Japan
Copyright(C) 2018 VISION INC. All Rights Reserved.
28

Travel Related Service Platform (Media)•

Airport counter
Overseas partners

＋

Korea

TaiwanDomestic airport
counters

15

Copyright(C) 2018 VISION INC. All Rights Reserved.

Overseas airport
counters

45

29

Travel Related Service Platform (Media)•

Inbound advertising media
Web
media

Video

Guidebook

Deliver
directly
at airport

Facility

・Deliver directly toeveryone
・Deliver at our partners‘
base・Available for 4 languages
・Issue 3 guidebook a year
・Issue 300,000 copies ayear

・SNS video posting/uploadingAfter immigration
Airport counter

Before travel

Move Tourism Stay

Tourist information
center・Shinjuku Kabuki-cho
area・Activity, event

Tourism

Move

Departure

Arrival
Email

Email
・Customers before
travel・Customers during
travel・Customers who
used in the past

Before immigration
Airport counter

Deliver
directly
at airport

Promotional
materials
・Correspond toeach airport
・Also correspond tonationality
・Able to choose thetimingCopyright(C) 2018 VISION INC. All Rights Reserved.

Deliver
directly
at airport

Sampling
・Correspond toeach airport
・Also correspondto nationality
・Able to choose
the timing

30

Travel Related Service Platform (Media)•

Outbound advertising media
Deliver
directly
at airport

Sampling

Web
media

Questionnaire foroverseas travelers

・Correspond to each
airport・Also correspond toeach attribute・Able to choose thetimingBefore travel

Before immigration
Airport counter

・For “GLOBAL WiFi”
users/members

After arrival
Airport counter
Move Tourism Stay

TourismMove

ArrivalDeparture

Email

Targeting Email・Reservation customers(before travel)
・Customers in use (during
travel)・Customers who used in thepast

Deliver
directly
at airport

Promotional
materials
・Correspond to each airport
・Also correspond tonationality
・Able to choose the timing

Copyright(C) 2018 VISION INC. All Rights Reserved.

31

Travel Related Service Platform (Media)•

Example of collaboration with MINISTOP

Renewal・Appeal text

Deliver (directly)

・Service contents

Deliver a Video

Discuss

Our staff discusses with their
PR dept. based on theaggregated data
・Propose an appealing method
corresponding to cultural (language)
difference
・Propose change of service
contents due to usage frequency
etc.

Use coupon

Aggregate data
・Analysis
Copyright(C) 2018 VISION INC. All Rights Reserved.

Convert into data with barcode
・When (period)
・Which store in Japan・Which language (available in 4
languages)
・ How many coupons are used32

Travel Related Service Platform (Useful Service)•

Rental service of wearable translation device– Suggest usage scenes for overseas travelers andforeign travelers visiting Japan• Have multilingual support, eliminate opportunity losses,
and provide satisfaction.
– “Communication with staffs of facilities etc. during the stay”
Trouble… 32.9% ＊– Offer for online and offline. (Available in 63 languages)• Resolve language anxiety by choosing the device
according to needs and scene.
「渡航先での現地の人々とのコミュニケーション」不満足... 50.0%〔*2〕＊Japan Tourism Agency “Questionnaire on Improvement of Accepting Environment in Japan by Foreign Travelers Visiting Japan”(February 2017)
Copyright(C) 2018 VISION INC. All Rights Reserved.

33

Information and Communications Service Business(Competitive Advantage)•
StartupCompanies

Have new dealings with one company in six to seven companies
that are newly established within the year–

National corporate registration number ... 118,811 （2017)
Source： Ministry of Justice

ＷＥＢ Strategy•

Customer
Loyalty•

Ability to attract customers due to our own WEB marketing(media strategy)
CRM strategy, our own know-how––

Maximization of continued revenue ＝ Stock business
Up/Cross Selling which is high productivity

U.com
Telephone Line Cellphone
Arrangements Support

OfficeAutomation

Website Support

Security

Electric Power*Total number of companies established within 6 months (including sole proprietors), starting
business with us (our research)
Copyright(C) 2018 VISION INC. All Rights Reserved.

34

Information and Communications Service Business
Growth Strategy (Customer Service)○高度なオペレーションで価値を創出する
Create values with advanced operation
カスタマー･ロイヤリティ･チーム（CLT）
Customer Loyalty Team (CLT)
From delivery procedure to after-follow
Covers a wide range of operations

Customers

Sales rep

Customer Loyalty Team

ProposalContract

Subscription and Delivery
procedure
Decidein details
VariousInstallation
arrangements
Delivery

Arrange schedule

Copyright(C) 2018 VISION INC. All Rights Reserved.

After-follow
SupportHearing

Offer
information
35

Information and Communications Service Business
Growth Strategy (Marketing)
Web marketing × Sales rep
× CLT Trinity “high efficiency”○Webマーケティング×営業×CLT
三位一体の“高効率”マーケティング
marketingNew

Existing

customers

customers

Hearcustomers’
problems andneeds

Acquire highly
reliable actual
demandProposalwith highprecision

Cooperation

Cooperation

Web marketing
team

Customer Loyalty
Team (CLT)

Sales rep
Copyright(C) 2018 VISION INC. All Rights Reserved.

36

Information and Communications Service Business
Growth Strategy (Escalation)○たゆまぬ進化を生みだす組織カルチャー
Organization culture that creates continuous evolution
High productivity created by cooperation between divisions (escalation)
事業部間連携（エスカレーション）が生みだす高い生産性
Customers

Improve productivity due to flat and open culture,promoting cooperation between divisions “escalation system”

Cooperation

Cooperation

Cooperation

Cooperation
Copyright(C) 2018 VISION INC. All Rights Reserved.

37

Information and Communications Service Business
Growth Strategy (Business Model)○Continuous stock model••

Keeping closer to the growth of client companies, offer optimum solutions
according to the growth stage.
Structure that profits are accumulated by our original know-how CRM (customer
relations/continuous dealings).
Optimum
solutions
Optimum
solutions
Optimum
solutions

Further growth
stage

Early growthstage
Startupstage

Current main targets:

Future targets:

Growth candidates

Enterprises in growth stages

Copyright(C) 2018 VISION INC. All Rights Reserved.

38

APPENDIX

Copyright(C) 2018 VISION INC. All Rights Reserved.

39

Group Structure
Number of affiliated companies
Overseas

Number of operation bases
Airport counter (directly operated)
Overseas
Domestic

Domestic

14

7
10

2

12
10

12

14

14

12

2011

2014

2017

2
7

2011

4

3

2014

2017

Employee count (Full-time)
Female
Male

497
347
252
30

222

2011

2014

Personnel classification

146

76

271

Profession
Clerical
Sales

252
61

497
41
347
28
129

351

2017

191

190

2011

2014

Copyright(C) 2018 VISION INC. All Rights Reserved.

191

265

2017
40

Performance Data
Sales
20,599Gross profit
Gross profit ratio

12,103

17,554

10,16014,843

8,622

12,4859,203

FY2013

6,909

10,185FY2014FY2015FY2016FY2017FY2018(Forecast)

5,198

5,651

56.5

55.5

55.3

FY2013

FY2014FY2015

SG&A expenses

58.1

57.9

FY2016FY2017

9,850

Operating profit
Operating profit ratio

8,372

56.4

1,788

FY2013

6,105

1,290
804

52.7

FY20148.7
48.9
FY2015FY2018(Forecast)

2,252

7,332
5,635

58.8

Operating profit

SG&A expenses
SG&A expenses ratio

5,188(JPYmn, %)Gross profit

49.4
FY201647.7
FY201747.8
FY2018(Forecast)

286

10.2

10.9

6.4

10

0.1 2.8
FY2013 FY2014

Copyright(C) 2018 VISION INC. All Rights Reserved.

FY2015FY2016FY2017FY2018(Forecast)41

“GLOBAL WiFi” Business•

Inbound (Overseas travelers to Japan)：
–
–
–

•

Market Size•

Over 28.69mn people for a year.
* FY2017 actual result
Potential market size: approx. JPY200.8bn ※Government’s target: 40mn people in 2020

Overseas travelers in the world (Number ofinternational tourist arrivals)：––

Outbound (Japan → Overseas)：––

Global travelers from overseas to overseas
are the huge market of 1.3bn people scale.
Potential market size： approx. JPY9tn andmore ※

Remained at around 17mn people.
Potential market size: approx. JPY125.1bn ※(mn people)(‘000 people)

1,800

60,000予想
40,000Government’s
targetInbound
Outbound

1,322

28,69024,039

1,235
1,184

19,737
13,4138,358 10,363

8,611

1,087

Approx. 17mn
people (slightly
increasing trend)

6,218

949

993

1,133

1,039

16,637 16,994 18,490 17,472 16,903 16,212 17,116 17,889

2010 2011 2012 2013 2014 2015 2016 2017

～

2020

～

2030

2010 2011 2012 2013 2014 2015 2016 2017

～

2030

Create from JNTO materials, March 2016 “Advisory Council on Tourism Nation Promotion”, Heisei29 edition tourism white paper, and the materials released by UNWTO※Estimate from Average Revenue Per User of our customer

Copyright(C) 2018 VISION INC. All Rights Reserved.

42

“GLOBAL WiFi” Business

Customer Attributes(Corporate・Individual)
1Q FY2018(Jan.-Mar.) Actual result
Rental number

AmountCorporate
Individual

Corporate
Individual

37.3%

46.1%

62.7%

1Q FY2017(Jan.-Mar.) Actual result

53.9%

Rental number

AmountCorporate
Individual

43.2%

Corporate
Individual

50.0%

56.8%

50.0%

※It is the ratio of overseas use (outbound: Japan ⇒ overseas).
Copyright(C) 2018 VISION INC. All Rights Reserved.

43

“GLOBAL WiFi” Business

Customer Attributes(New・Repeat)
1Q FY2018(Jan.-Mar.) Actual result
Rental number

AmountRepeatNew

Repeat
New

52.2%
47.8%
1Q FY2017(Jan.-Mar.) Actual result

52.4%
47.6%

Rental number

AmountRepeatNew

Repeat
New

50.0%
50.0%

50.7%
49.3%

※It is the ratio of overseas use (outbound: Japan ⇒ overseas).
Copyright(C) 2018 VISION INC. All Rights Reserved.

44

“GLOBAL WiFi” Business

Customer Attributes(By Gender / Age・Past Cumulative Total)

5.7%

1.6%

By age6.1%

By gender, corporate / individual

0.6%

12.8%

19.9%

8.9%

40.3%

13.9%

8.7%

11.7%
14.5%
11.5%

31.1%

12.7%
Under 18

19-24

25-29

30-34

35-39

45-49

50-54

55-59

Over 60

Unknown

1.2%

By age (Male)

4.0%

3.7%
3.6%

40-44

Individual / Female

Individual / Male

Corporate / Female

Corporate / MaleBy age (Female)

0.3%

0.2%

0.4%

1.8%
5.3%

5.1%

3.8%

2.5%

9.1%

4.8%

6.9%

8.6%

4.7%

6.9%
7.1%

5.6%

6.9%
Under 18

19-24

25-29

30-34

35-39

45-49

50-54

55-59

Over 60

Unknown

Copyright(C) 2018 VISION INC. All Rights Reserved.

40-44

7.5%

Under 18

19-24

25-29

30-34

35-39

45-49

50-54

55-59

Over 60

Unknown※It is the ratio of overseas use (outbound: Japan ⇒ overseas).

40-44
45

Information and Communications Service Business
Market Size•

Establishment registration number (total)：118,811–––

Approx. 110 thousand companies annually.
(Continued increase trend due to aggressive
establishment and corporate support by thegovernment)
Attract customers utilizing the know-how of
web marketing with over 15 years
experience.
Target newly established companies.
118,811
114,343
111,238
106,644•

Relocation registration number of head officeand branch (total) ：142,975–––

Cover change procedures etc. on addition andrelocation.
Approx. 140 thousand companies annually.
(Excluding the relocation number of offices thatare not obliged to apply for registration)
Cross/Up Selling due to advanced operation by
Customer Loyalty Team (CLT).
(Number)
142,975

139,734

138,865

137,594

96,65991,942
87,91689,664
133,176

131,019
130,999
130,0192010 2011 2012 2013 2014 2015 2016 20172010 2011 2012 2013 2014 2015 2016 2017

Copyright(C) 2018 VISION INC. All Rights Reserved.

46

Overview of Stock Options with Charge Issuance(Resolved by the Board of Directors’ Meeting on November 13, 2017)※Excerpt from “Determination of Details of Issuance of Stock Acquisition Rights” on Nov. 30, 2017

Item

Details

Name

Vision Inc. Third Series Stock Acquisition Rights

Issued13,560 units

Issue price

JPY1,600 per stock acquisition right

Total issue price

JPY3,510,684,000

TargetDirectors (excl. outside directors), employees, employees of the subsidiaries
163 people 13,560 units

Conditions for the
exercise of the stockacquisition rights

If the operating profit for any fiscal year from FY2018 to FY2021 falls
below JPY1.6bn, the subsequent stock acquisition rights cannot be
exercised, except for the stock acquisition rights that are already
exercisable.

(100 shares per stock acquisition right, 1,356,000 shares of common stock)※ See the table below

Operating profit in any fiscal year from
FY2018 to FY2021 exceeds JPY3.6bn• Exercisable ratio：100％

Operating profit in FY2020 exceeds JPY3.1bn• Exercisable ratio：30％

Operating profit in FY2018 exceeds
JPY2.1bn and operating profit in
FY2019 exceeds JPY2.6bn• Exercisable ratio：30％

Copyright(C) 2018 VISION INC. All Rights Reserved.

47

Business Summary

Copyright(C) 2018 VISION INC. All Rights Reserved.

48

VISION INC.
Code
Incorporated

9416

Operation Bases and Affiliates(1st Section of the Tokyo Stock Exchange)

•
•
•
•

December 4, 2001
(Founded June 1, 1995)

Management
Philosophy

Contributing to the Information andCommunications Revolution

Head Office

5F Shinjuku i-Land Tower, 6-5-1 NishiShinjuku, Shinjuku-ku, Tokyo 163-1305

Consolidated
Employees(Average temporary
employees)

AffiliatedCompanies

2011
2012
2014
2016

Korea, USA (Hawaii), Hong Kong
Singapore, Taiwan, UK
Vietnam, China (Shanghai), France,
Italy
USA (California), New Caledonia

636 (138)
Domestic: 562 (131)Global: 74 (7)(As of March 31, 2018)

Domestic: 4
Global: 12

GLOBAL WIFI.UK LTD(As of March 31, 2018)

Business

Domestic Affiliated Companies： 4
Domestic Operation Bases： 10
Domestic Airport / Port Counter： 15
Global Affiliated Companies： 12

GLOBAL WiFi
Information andCommunications Service

Vision Inc.

Global WiFi France SAS
Vision Mobile Italia S.r.I.
上海高效通信科技有限公司

Best Link Inc.
Members Net Inc.
Alphatechno Inc.
BOS Inc.
Vision Mobile Korea Inc.

Vision Mobile Hawaii Inc.

Vision Mobile Hong Kong Limited
VISION VIETNAM ONE MEMBER
LIMITED LIABILITY COMPANYVISION MOBILE USA CORP.

無限全球通移動通信股份有限公司（台湾）

GLOBAL WIFI.COM PTE. LTD.
VISION MOBILE NEW CALEDONIA

Affiliates, Purchasing / Operation Bases
Purchasing / Operation Bases
System Development Center (Offshore)

Copyright(C) 2018 VISION INC. All Rights Reserved.

49

History and Evolution of Sales
Changed the market to 1st Section of
the Tokyo Stock Exchange in DEC. 2016
Listed with “Mothers” of the Tokyo
Stock Exchange in DEC. 2015

Started Global Wi-Fi
router rental service

2016
2015

Started e-ca Wi-Fi
router rental service

2012
Established Best Link Inc.
and Members Net Inc.

Started broadband
subscription

2010

2008

Started company
cellphone business

2007
2006
2005
2004
Started Internet
advertising business

Founded

1995

2003
Started international telephone service sales businessfor South American people who live in Japan

2006

2007

Opened Fukuoka Office, Kansai Office andYokohama OfficeOpened Shinjuku Office and Nagoya Office2009 Opened Naha Office2011 Opened Sapporo OfficeOpened Saga Vision Future Business Center (VFBC)
Established Overseas subsidiaries（Korea, Hawaii, Hong Kong）
2012

Opened Narita Office
Established Overseas subsidiaries (Singapore, Taiwan, UK）

2014

Opened Rinku Office
Established Overseas subsidiaries (Vietnam, China, France, Italy）

2016

Established Overseas subsidiaries (USA California, New
Caledonia）

Copyright(C) 2018 VISION INC. All Rights Reserved.

50

Two Business Segments“GLOBAL WiFi” Business•

Offer anytime, anywhere, safe, secureand comfortable mobile Internet
environment all over the world.
–•

Rental service•–

Information and Communications
Service Business

Cost only when traveling.

Can connect with multiple users andmultiple devices (smartphone, PC,etc.).

•

Offer the most suitable informationand communications-related products
and services tailored to the stage andneeds of the company.
Our own sales structure, CRM.
–

Web marketing × Sales rep × CLT(Customer Loyalty Team)

U

.com

Telephone Line Cellphone
Website Support
OfficeArrangements
Support Automation

Copyright(C) 2018 VISION INC. All Rights Reserved.

Security

Electric Power51

Contributing to the Information and Communications Revolution

Copyright(C) 2018 VISION INC. All Rights Reserved.

52

Notes on the Future Outlook
Materials and information provided in this announcement include so-called “forward-looking
statements”.
They are estimated at the present and are based on the assumption that involves forecasts
and risks, and substantially they include uncertainties which could cause different results fromthese statements.
These risks and uncertainties include general industry and market conditions, and generaldomestic and international economic conditions, such as interest rates and currency exchange
fluctuations.
In the future, even if there is new information or future events etc., we does not undertake
any obligation to update and modification of the “forward-looking statements” included in thisannouncement.
Vision Inc.
•
Contact： ir@vision-net.co.jp

Copyright(C) 2018 VISION INC. All Rights Reserved.

53