1st Quarter FY2019

Financial Results

May 14, 2019
Vision Inc.
(1st Section of the Tokyo Stock Exchange, code： 9416)

1Q FY2019 Financial Results• Performance Highlights and 1Q FY2019 Actual Results• FY2019 Outlook of Financial Results• Progress made in FY2019• 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) 2019 VISION INC. All Rights Reserved.

2

Performance Highlights and 1Q FY2019 Actual Results

Copyright (C) 2019 VISION INC. All Rights Reserved.

3

1Q FY2019 Overview of Financial Results (Consolidated)

New records for both sales and each profit.
(JPYmn, %)FY2019/1Q Result

Items

AmountSales
FY2018/1Q Result

Gross profit
FY2018/1Q Result

Operating profit
FY2018/1Q Result

Recurring profit
FY2018/1Q Result

Profit attributable toowners of parent
FY2018/1Q Result

Composition
ratio

ChangeAmountPercentage

6,470

100.0

+1,547

+31.4

4,922

100.0

+595

+13.8

3,797

58.7

+867

+29.6

2,930

59.5

+409

+16.2

980

15.1

+243

+33.1

736

15.0

+222

+43.4

980

15.2

+235

+31.6

745

15.1

+241

+47.8

669

10.3

+155

+30.2

514

10.4

+172

+50.4

Copyright (C) 2019 VISION INC. All Rights Reserved.

4

Reasons for Increase in Operating Profit(JPYmn)Operating profit margin 15.1%(Approx. +0.2% points YoY)

Cost of sales-to-sales ratio+0.8% points––

With the support of stable repeat use mainly bycorporate users, acquisition of FIT was successful
and the rental number has increased.
(Absorb the advanced procurement costs of dataline and devices prepared for the busy season of
GW)
Improve profitability through continuous efforts
such as cost efficiency and operation improvement.
• Improve purchasing conditions by volume
discount• Promote to utilize CLOUD WiFi
– Operate Wi-Fi routers and data-line
efficiently• Improve operation– Improve efficiency for responding
inquiries (AI/RPA utilization FAQ,
chatbot, etc.)– Improve efficiency to deliver devices(“GLOBAL WiFi for Biz” for corporate
customers, add automatic pick-up
locker “SmartPickup”, etc.)+680+1,547 Gross profit+JPY867mn(+29.6%)736
Operatingprofitmargin15.0％
FY2018/１Q

SG&A-to-sales ratio-1.0% points

+623

980

Operating profit+JPY243mn(+33.1%)

Sales

Cost

Operatingprofitmargin15.1％
SG&A

expenses

FY2019/１Q

Both travelers from Japan to overseas andforeign visitors to Japan are the largest ever.
“GLOBAL WiFi” Business ：–Information and Communications Service
Business：
Increase sales and profits by up/cross selling
strategy, enhancing profitable services.

Copyright(C) 2019 VISION INC. All Rights Reserved.

5

Segment Actual Result•“GLOBAL WiFi” Business： Sales +31.9%, and Segment profit +24.2%.

•

Information and Communications Service Business： Sales +26.6%, and Segment profit +62.7%.
(JPYmn, %)Sales

FY2018/1Q
ResultAmountAmountChangeAmountPercentage“GLOBAL WiFi”

4,075

3,089

+986

+31.9

Information andCommunications Service

2,302

1,818

+483

+26.6

Subtotal

6,378

4,907

+1,470+30.0

Others

95

14

+80

+551.7

Adjustments

-3

－

-3

－

Total (Cons.)

6,470

4,922

+1,547+31.4“GLOBAL WiFi”

871

701

+169

+24.2

21.4

22.7

-1.3

－

482

296

+185

+62.7

20.9

16.3

+4.6

－

Subtotal

1,353

997

+355

+35.7

Others

-86

-28

-58

-203.1

Adjustments

-286

-232

-53

-23.1

Total (Cons.)

980

736

+243

+33.1

Profit margin

Information andCommunications Service
Segment
profit

FY2019/1Q
ResultProfit margin

Copyright (C) 2019 VISION INC. All Rights Reserved.

6

“GLOBAL WiFi” BusinessTransition of Performance
Both travelers from Japan to overseas and foreign visitors to Japan are the largest ever. Steady
performance and continual increase in sales and profit.
With the support of stable repeat use (approx. 51%), acquisition of FIT such as student trips (graduation
trips) was successful (FIT accounts for approx. 70% of the total.), and the rental number has increased.
Steadily increase also in corporate and inbound demand.
Continued efforts to improve profitability, such as cost efficiency and operation improvement.

–

–
–

1Q
2Q
3Q
4Q

SALES

15,579(Forecast)+15.3%

13,505

1Q
2Q
3Q
4Q

SEGMENT PROFIT+10.3%

2,413+51.5%

495

3,589

1,593

+31.8%+30.6%

6,035
1,602
1,826
1,308

7,882
2,073

3,929

1,697

1,781

FY2015FY20161,140+92.2%

3,022
2,226

1,297

+39.7%

2,636

2,329

2,898
+31.9%

2,505

3,089

FY2017FY20182,662(Forecast)+30.0%

10,392(JPYmn)4,075
FY2019

245

593
114

494

256
60

146

162

252

FY2015FY2016

224

769

631
448
271

466
FY2017+24.2%

701
FY2018871

FY2019(Note) 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) 2019 VISION INC. All Rights Reserved.

7

Information and Communications Service BusinessTransition of Performance
Increase in sales and profits. Continue stable growth.
––

Continue to perform well due to acquiring our main targets (newly established companies, venturecompanies).
Accumulate continuous dealings by CRM (stock model).
•

–

1Q
2Q
3Q
4Q

Accumulate by up/cross selling strategy.

The success in capturing demand in line with the company's financial results.

SALES
8,036

+3.4%(Forecast)

+2.2%

+9.4%

+7.9% 6,948

7,104

1,730

1,725

6,440
1,673

1,601

1,629

1,749

7,775

1Q
2Q
3Q
4Q

(Forecast)+14.4%+13.4% 1,024

903
1,977

(JPYmn)

1,422
+3.9%

1,970

1,786

SEGMENT PROFIT

1,172
285

+16.7%

1,218
212

219

214
244

287

371

221
1,764

1,782

2,009
269

296

316

337
+62.7%+26.6%

1,536

1,703

1,810

1,818

FY2015FY2016FY2017FY20182,302

FY2019198
FY2015

264

282

296

FY2016FY2017FY2018482

FY2019(Note) 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) 2019 VISION INC. All Rights Reserved.

8

FY2019 Forecast of Financial Results

Copyright (C) 2019 VISION INC. All Rights Reserved.

9

FY2019 Forecast of Financial Results
Sales: +13.8％ YoY, and Operating profit: +21.2％ YoY.
(JPYmn, %)FY2019 Forecast

Items

AmountSales
FY2018 Result

Gross profit
FY2018 Result

Operating profit
FY2018 Result

Recurring profit
FY2018 Result

Profit attributable toowners of parent
FY2018 Result

ChangeComposition
ratio

AmountPercentage

24,470100.0+2,967+13.8

21,503100.0+3,948+22.5

14,64059.8+1,990+15.7

12,65058.8+2,489

+24.5

3,012

12.3

+527

+21.2

2,484

11.6

+695

+38.9

3,013

12.3

+514

+20.6

2,499

11.6

+704

+39.3

2,003

8.2

+474

+31.0

1,529

7.1

+320

+26.5

Copyright (C) 2019 VISION INC. All Rights Reserved.

10

Segment Forecast•“GLOBAL WiFi” Business： Sales +15.3%, and Segment profit +10.3%.

•

Information and Communications Service Business： Sales +3.4%, and Segment
profit +16.7%.
(JPYmn, %)Sales

FY2018ResultAmountAmountChangeAmountPercentage“GLOBAL WiFi”

15,57913,505+2,073+15.3

Information andCommunications Service

8,036

7,775

+261

+3.4

23,61521,281+2,334

+11.0

855

231

+624

+270.2－-8+8+100.0Total (Cons.)

24,47021,503+2,967+13.8“GLOBAL WiFi”

2,662

2,413

+248

+10.3

Information andCommunications Service

1,422

1,218

+203

+16.7

Subtotal

4,085

3,632

+452

+12.4

62

-194

+257

+132.4

Adjustments-1,135

-954

-181

-19.0

Total (Cons.)

3,012

2,484

+527

+21.2

Subtotal
OthersAdjustments

Segment
profit

FY2019Forecast

OthersCopyright (C) 2019 VISION INC. All Rights Reserved.

11

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

FY2016FY2017FY2018FY2019

２Ｑ

３Ｑ

４Ｑ

FY

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

Sales

4,922

4,933

5,961

5,686

21,503Composition ratio (vs. FY)

22.9

22.9

27.7

26.4

－

Operating profit

736

499

900

348

2,484

Composition ratio (vs. FY)

29.6

20.1

36.2

14.0

－

Operating profit margin

15.0

10.1

15.1

6.1

11.6

Sales

6,470

24,470Composition ratio (vs. FY)

26.4

－

Operating profit

980

3,012

Composition ratio (vs. FY)

32.5

－

Operating profit margin

15.1

12.3

Copyright (C) 2019 VISION INC. All Rights Reserved.

12

Progress made in FY2019

Copyright(C) 2019 VISION INC. All Rights Reserved.

13

Promote to Utilize “CLOUD WiFi”•

A Wi-Fi router equipped with nextgeneration communication technology thatmanages SIM on the cloud.
–
–

•

•

–

No need to insert/change SIM physically.
Telecommunication carriers all over the world canbe allocated with one device.

––

Increase to over 90% of shipping Wi-Fi routers.
(Mar. 2018：approx. 67％ ⇒ Mar. 2019：approx. 95％)
※Differentiate by utilizing the SIM contracted by us.
※Some countries can not respond depending on
telecommunication carriers. Around 90% is the upper limit.

Benefits：•

Reduce telecommunication cost ratio (Improveusage efficiency of data- telecommunication)
Labor saving of shipping operations (Reduce
SG&A expenses)
Utilization service/new method (Improve
profit)Utilization service/new method：–

Offer “GLOBAL WiFi for Biz”••

You can use it
immediately
after turning on
the power!

Store SIMs allover the worldon the cloud––

Keep it at the customer‘s office (No need forrental arrangement every travel)
Domestic (Japan) internet connection is free
up to 3GB/month (available on a daily basis)

Integrated into overseas travel products bytravel agencies
Expand inventory/available areas at each
airport counter•

Minimize opportunity losses–

Copyright (C) 2019 VISION INC. All Rights Reserved.

System providing services to departing
passengers on the day (Increase in the rental
number)14

GLOBAL WiFi for Biz••

If you have GLOBAL WiFi forBiz...

Promote of continuous use by corporate users (Improve convenience, satisfaction)
Reduce operating costs

M1: Oops!!
M2: What's wrong?
M1: I've forgot to apply for Wi-Fi...

①

F: Your company has not introduced “Wi-Fi kept
at the office” yet?
M1: Wi-Fi kept at the office!?

②

F: GLOBAL WiFi for Biz, just bring the mobile WiFi router kept at the office!
No need for rental arrangement every travel!
Available in over 100 countries with one device!

③

M1: It's a waste of expenses when not in use.
M2: We don't go overseas on business trips
frequently.
F: However, the fee is a fixed-rate system thatcosts only on the day you use it.
M1: Oh, is it!?

④

M1: But... I don’t like a slow data-line.
F: Don’t worry! It supports multiple carriers’ SIM
for one country and automatically selects andconnects the line with the best telecommunication
environment.

F: Since you can pay by invoice, no need to be
reimbursed expenses.
M2: Wow!
M1: Then we can reduce the user’s
reimbursement procedure and the approver’s
intermediate cost.

⑦

M1: Certainly attractive though... if we introduce
it, I have to persuade my boss...
F: GLOBAL WiFi, no need to purchase a device.
Since it can also issue actual usage details, it'ssafe as a company.

⑧⑤

F: In addition, with the optional Japan fixed-rate
plan, domestic (Japan) internet connection is free
up to 3GB/month.
M1: In other words, even when we don’t gooverseas on business trips, we can easily use it asa mobile Wi-Fi router in Japan.

⑥

F: And the basic charge is JPY1,970/month!

Copyright (C) 2019 VISION INC. All Rights Reserved. 15⑨

Smart Strategy
Automatic pick-up locker

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

Immediate customer
identification counter(QR code reception counter)

Reception

Smart Pickup

Smart Check

Smart Entry

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 visitors to Japan.

Copyright (C) 2019 VISION INC. All Rights Reserved.

16

Airport Counter and Smart Pickup•••

16 airport counters in Japan, and 19 automatic pick-up lockers are installed at 5 airports.
Enhance users’ touch points such as new counter openings (Oita Airport) and “Smart
Pickup” addition (18 ⇒ 19).
The service level is optimized according to customers.
⁃⁃⁃

Eliminate waiting time thoroughly for customers who do not need explanation (such as repeater).
Airport staff responds to customers who need explanation.
Haneda Airport: 3, Narita Airport: 6, Chubu Airport: 3 (1 addition)
Kansai Airport: 6, Itami Airport: 1
Total: 19※As of March 31, 2019
Hokkaido, Tohoku area

Hokuriku, Koshinetsu
area

Kanto area
Kyushu, Okinawa area

Tokai, Kansai area

Copyright(C) 2019 VISION INC. All Rights Reserved.

17

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 departing passengers on the 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) 2019 VISION INC. All Rights Reserved.

18

Total Number of Users Exceeded 10 million•

Offer a total of 10 million yen presents to celebrate over 10 million users.
(February 14, 2019 to March 26, 2019)

Total Number of Users
Exceeded 10 million!!

GLOBAL
WiFi,
NO.1 inpopularity

Total 10 million yen

personpeople【1st prize】
JPY1mn for travel【2nd prize】
JPY0.1mn for travel

present campaign
With gratitude,
Anyone can apply!
How long is the travel distanceof 10mn users?

People can goaround theearth 1,344,139
times!

people【3rd prize】
Catalog gift

What is the wattage required tocharge for 10mn users?

A family offour canlive for 424
years!
Copyright(C) 2019 VISION INC. All Rights Reserved.

people【4th prize】
Arita beefof Miyazaki

people【5th prize】
GLOBAL
WiFi coupon

If 10mn people hold hands…

They will arrive

from Japan to Brazil!
19

Offer an Unlimited Plan
There is a tendency to consume a large-volume data, such as
diversification of smartphone apps, transmission and reception oflarge-volume images and videos, and SNS posting.
• Share and use with multiple people such as friends and family.
⇒ Respond to a request for the plan that can be used without worrying
about data capacity, and expand the service area.
•Datacapacity

Start offering an unlimited plan
Available in 35 countries

What’s anunlimited plan?

From the voice of customers who want to use withoutworrying about the data capacity when using by video,
SNS posting, and multiple people, “unlimited plan” withunlimited data capacity was born.
It's available in 35 countries and will be expanded at any
time.

Copyright(C) 2019 VISION INC. All Rights Reserved.

20

Example of Efforts （GO BEYOND.）

Only those who have a will and who cross the walls lightly can clear the
future.
We offer various services of “GLOBAL WiFi” based on that belief.
Therefore, we support individuals and organizations that are crossing theborders, exceeding restrictions, and aiming for new conviction and growth in
the activities they are working on.
For the “GO-BEYONDER” certified by us, we support their activities throughthe provision of “GLOBAL WiFi”.
“GO-BEYONDER”〇Cumulative number of GO-BEYONDER, certified by December 2018 .... 200〇Athletes, artists, entertainers, racers, adventurers, photographers, activity
organizations, etc.
CONCEPT https://global-wifi.com/index.html
CONCEPT MOVIE https://global-wifi.com/movie.html
Copyright (C) 2019 VISION INC. All Rights Reserved.

21

Progress in Information and Communications
Service Business (Detailed Topics)○Enhance distribution channel•“BIMAKE (Vision Business Market)”https://vision-bizmarket.com/– “Comprehensive support website forcompanies” that fully supports allcompanies’ business.
– For startup, small and medium-sized,
and venture companies. Also attract
customers who are preparing to establish
company.
– Offer our services and tie-up partner’s
products with useful information.

○Sell in-house developed services(Enhance products, services, and businessmodels)•“VWS WEB CALL SYSTEM”
https://vws-biz.com/web-call-system/– Sell the cloud-type service developed inhouse by implementing our know-how.
– There is superiority in function to increase theoperation efficiency of personnel and tounderstand each sales situation.
– Less fixed costs and available for at least
small companies– Target service of “subsidy to implement IT”– Continue to introduce high-demand services.

Copyright (C) 2019 VISION INC. All Rights Reserved.

22

Travel Related Service Platform
Use existing customer foundation and offer useful information/services to solve
problems during overseas travel.

Overseas
travelers

In Japan total approx. 3.6mn people/25.22mn nights
Outbound (approx. 2.82mn people/19.76mn nights) + Inbound (approx.
0.78mn people/5.45mn nights)＊FY2018 results, our research

Advertising
revenue
improvement

Useful services

Useful information (Media)
Guidebook

Promotional
materials

Insurance Coupons

Facility・Counter

Shop &
Duty-freeshop

Hotel &
Minpaku

ARPU
improvement

SNS

Rental service of wearable
translation device

Email

Tours

Rentalcars

Pick-up service etc.

TouristGourmetattractions

Settlement platform

Guide customers to allied partners
Copyright (C) 2019 VISION INC. All Rights Reserved.

Golf
courses《Reference》
FY2017 results:
approx. 2.69mn people/18.83mn nights
・Outbound... approx. 2.08mn people/14.56mn nights
・Inbound… approx. 0.61mn people/4.27mn nights
23

ProDrivers (Expansion of Travel Related Service Platform)
Utilization (Utilize customer foundation)
 Hired car time sharing service business Pick-up service to make every move comfortable in both business and daily life, such as airport
transfer, executive pick-up, etc.
Utilize the customer foundation of “GLOBAL WiFi” Business (including foreign visitors to Japan).
⁃Target customers of Information and Communications Service Business and new customers, too.

⁃Domestic：Starting from Tokyo, plan to develop in major cities, including partner development.

⁃

Overseas：“SmartRyde” (operated by DLGB Inc., a capital and business alliance partner)

Move with big baggage.
Available in increments of 2 hours.
Available for up to 9 people for asingle car (economical by splitting thecost)
Copyright (C) 2019 VISION INC. All Rights Reserved.

24

“Vision Kids Nursery” Opened
as Company-led Childcare Business
〇Aims
•

•

In childbirth and childcare, which are life events of employees, implement measures to makework rules more flexible, expand leave systems, and promote to take leaves (current status)⇒ Provide a more work-friendly environment (a sense of security with children nearby) thanever before.
※ Establish a childcare facility on site of CLT, where female employees account for more than90%.
Easy to return to work, and hire employees who are
motivated to work in a parenting generation⇒ Sources of sustainable growth

Copyright(C) 2019 VISION INC. All Rights Reserved.

25

Growth Strategy

Copyright (C) 2019 VISION INC. All Rights Reserved.

26

Medium-Term Growth Image
Steadily promote the growth strategies.
• “GLOBAL WiFi” Business
Customer Foundation/Business Foundation– Expansion (Market development = Growth in 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.

Travel related
service platform“GLOBAL WiFi”
Travel related
service platform【3rd stage】 Overseas⇒Overseas【2nd stage】 Inbound【1st stage】 OutboundInformation and Communications
ServiceEnhance channel
Enhance products, services, business models
Copyright (C) 2019 VISION INC. All Rights Reserved.

27

“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; 47 support bases available 24 hours a day, 365 days a year, around theworld
Number of airport counter is the industry’s largest class•

Corporate Sales•

Worldwide
telecommunications
companies

Customers •Uptake ability of corporate needs

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

Number of users is the largest in the industry

Datacommunication
service

Payment

Direct website
Apps
Affiliates
Corporate sales
Partners
Airport counters

Shipping
ReturnEnd Users

Counter

Rental fees

Copyright (C) 2019 VISION INC. All Rights Reserved.

Payment

Settlement service
providers

Safe / Secure•

Vision Group

Areas

From JPY300/day * Japanese cellphone companies’ fixed-rate discount comparison

28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 independent 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(Telecom carriers’
fixed-rate)

Prepaid SIM(Purchaseoverseas)

Free Wi-Fi Spot

×

△

△

○

○

Problem with price and quality(From JPY1,980 to JPY2,980/day. It may be charged even more.)

△

△

○

×

○

Need knowledge to manage (Set-up, activation, periodical charge, etc.)

○

×

△

○

×

(Hotel, Café, etc.) Problem with coverage (not available in everywhere), speed (depend on data-line of
the facility and the number of connected people), security
Copyright (C) 2019 VISION INC. All Rights Reserved.

29

“GLOBAL WiFi” BusinessProfit Structure

Items

Summary①Rental price per day × number of usage days
※Average：JPY1,000/day

Sales

Average usage days：7 days

※Options such as insurance, mobile battery etc.

②Monthly charge (JPY1,970) + data telecommunication fee (plan) ×
number of usage days
・Usage of data telecommunication (telecom carriers all over the world)

Cost of sales

・Devices (mobile Wi-Fi routers)※Recorded as rental asset (recorded by depreciation for 2 years)

・Outsourcing (commission paid to sales agents), etc.
・Personnel expenses
・Advertising expense

SG&A expenses

・Operation and rent of shipping center, airport counter, customer center,etc.
・Other SG&A expenses, etc.
Copyright (C) 2019 VISION INC. All Rights Reserved.

30

“GLOBAL WiFi” Business

Growth Story

Our Wi-Fi rental service penetration ration (Japan) ※14.9%

Overseas use share (Outbound: Japan ⇒ Overseas)
Domestic use share (Inbound: Overseas ⇒ Japan + Japanese)
Share in the Japanese market (Out + In)

0.4%
0.3%
FY2012

1.4%

2.0%
0.0%

4.4%

FY20130.2%

FY2014

8.3%

6.4%

2.7%

3.5%

0.7%

1.2%
FY2015

11.7%

4.7%

5.8%

2.1%

2.2%

FY2016FY20177.1%
2.5%
FY2018223

Annual rental number (Unit: 10 thousand)

6

Overseas business (Except for use in Japan, Overseas ⇒ Overseas)

165

Domestic use (Inbound: Overseas ⇒ Japan + Japanese)
Overseas use (Outbound: Japan ⇒ Overseas)

114
51

5

1
3

24

0

1
0

22

46

FY2012FY2013

FY20140

4※ Created from Japan Tourism Agency material by us

78
64
FY2015

6
28

6
19

4
9

40

175
130

88

FY2016FY2017

Copyright (C) 2019 VISION INC. All Rights Reserved.

FY201831

＜Reference＞ “GLOBAL WiFi” Business
Market Size•

Inbound (Foreign visitors to Japan)：–––Over 31.19mn people for a year.
* Results in FY2018
Potential market size: approx. JPY218.3bn ※Government’s target:
•
•

•

–

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

40mn people in 2020
60mn people in 2030

Outbound (Japan → Overseas)：–•

Global travelers from overseas to overseas
are the huge market over 1.3bn people scale.
Potential market size： approx. JPY9tn andmore ※(10 thou. people)

Approx. 19mn people for a year.
* Results in FY2018
Potential market size:
approx. JPY132.6bn ※(mn people)

1,800

6,000

Forecast

4,000
3,119

Inbound
OutboundGovernment’s
target

2,869

1,322

2,403

1,235
1,184

1,973
861

1,341
835 1,036

1,087

621
949

1,895

1,6631,6991,8491,7471,6901,6211,7111,788

2010 2011 2012 2013 2014 2015 2016 2017 2018

2020

1,039

1,900

1,850

～

993

1,133

～

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) 2019 VISION INC. All Rights Reserved.

32

Information and Communications Service Business
Growth Strategy (Competitive Advantage)•
StartupCompanies

Have new dealings with one company in seven to eight companies※that are newly established within the year in JapanThe number of national corporate registration ... 116,208 (2018)
Source: Ministry of Justice

WEB Strategy •Customer
Loyalty•

Ability to attract customers due to our own WEB marketing (Internet
media strategy)
CRM (customer relations/continuous dealings) 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)
The number of acquisitions will depend on the fluctuations in handling services and products.
Copyright (C) 2019 VISION INC. All Rights Reserved.

33

Information and Communications Service BusinessProfit Structure
Summary
Items

Sales

Telephone line arrangements, cellphone,electric power, etc.

Office automation (multifunction printer,business phone), website support, security

・Business brokerage fee (commission)・Sales price・Continuation fee (according to customers’ usage※Fee from leasing company and credit

situation)company※Fee from telecom carriers and primary agents・Maintenance fee※Fee from the manufacturers and factoring(website maintenance)

Cost ofsales

・Devices (cellphones)・Devices (office equipment, security)※No cost of sales for telephone line arrangements※Payment to the manufacturers

and electric power・Outsourcing (commission paid to agents), etc.

※Payment to telecom carriers and primary agents・Outsourcing (commission paid to agents), etc.
・Personnel expenses

SG&A
expenses・Advertising expense (website, etc.)
・Rent of call center etc.
・Other SG&A expenses, etc.
Copyright (C) 2019 VISION INC. All Rights Reserved.

34

Information and Communications Service Business
Market Size•

Number of incorporation registrations(total) ：116,208–––

Number of registration of transfer of head
office and branch (total) ：144,597

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.

10.6

8.7

•

8.9

9.1

11.1

11.4

–

–
–

Approx. 140 thousand companies annually.
(Excluding the number of offices transferredthat are not obliged to apply for registration)
Cover change procedures, etc. on addition andrelocation.
Cross/Up Selling by advanced operations of
Customer Loyalty Team (CLT).
(Unit: 10 thousand)11.8 11.6
13.8

13.3

13.0

13.0

13.1

13.7

13.9

14.2 14.4

9.6

2010 2011 2012 2013 2014 2015 2016 2017 20182010 2011 2012 2013 2014 2015 2016 2017 2018

Copyright(C) 2019 VISION INC. All Rights Reserved.

35

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 operations
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) 2019 VISION INC. All Rights Reserved.

After-follow
SupportHearing

Offer
information
36

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) 2019 VISION INC. All Rights Reserved.

37

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) 2019 VISION INC. All Rights Reserved.

38

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) 2019 VISION INC. All Rights Reserved.

39

APPENDIX

Copyright (C) 2019 VISION INC. All Rights Reserved.

40

Group Structure
Number of operation bases

Number of affiliated companies

Airport counter (directly operated)
Overseas
Domestic

Overseas
Domestic

12
12

12

3

3

2016

2017

2018

7
2019 1Ｑ

Number of employees (Full-time)
Female
Male

452
127

497

586

587

174

174

146

12

12

12

12

2016

2017

Profession
Clerical
Sales

351

2016

2017

412

2018

452
32

497
41
191

413

2019 1Ｑ

12

12

16

16

2018

2019 1Ｑ

Personnel classification

194
325

16

14

10

12
7

15

586

587

72

77

200

201

226

265

314

309

2016

2017

2018

2019 1Ｑ

Copyright(C) 2019 VISION INC. All Rights Reserved.

41

Performance Data
Sales
24,47021,503

12,485
10,185
9,203(JPYmn, %)14,640Gross profit
Gross profit
Gross profit ration

12,65010,16017,554
14,843

8,622
5,198 5,651
56.5

FY2013FY2014FY2015FY2016FY2017FY2018FY2019

6,909
58.1

55.5

57.9

58.8

55.3

FY2013FY2014FY2015FY2016FY2017FY2018FY2019(Forecast)(Forecast)

SG&A expenses

Operating profit

SG&A expenses
SG&A expenses ratio

5,188 5,365
56.4

6,105

11,628
10,165
7,332

Operating profit
Operating profit ratio

48.9

3,012
2,484

8,372
1,788
1,290
804

52.7

49.4

59.8

47.7

47.3

47.5

FY2013FY2014FY2015FY2016FY2017FY2018FY2019

10

286

8.7

10.2

11.6

12.3

6.4

2.8
0.1
FY2013FY2014FY2015FY2016FY2017FY2018FY2019(Forecast)
Copyright (C) 2019 VISION INC. All Rights Reserved.

(Forecast)42

“GLOBAL WiFi” Business

Customer Attributes(Corporate/Individual)
1Q FY2019(Jan.-Mar.) Result
Rental number

AmountCorporate
Individual

Corporate
Individual

30.9%

38.9%

69.1%

1Q FY2018(Jan.-Mar.) Result

61.1%

Rental number

AmountCorporate
Individual

37.3%

Corporate
Individual

46.3%
53.7%

62.7%

※It is the ratio of overseas use (outbound: Japan ⇒ overseas).
Copyright (C) 2019 VISION INC. All Rights Reserved.

43

“GLOBAL WiFi” Business

Customer Attributes(New/Repeat)
1Q FY2019(Jan.-Mar.) Result
Rental number

AmountRepeatNew

Repeat
New

51.4%
50.0%

48.6%

1Q FY2018(Jan.-Mar.) Result

Rental number

47.9%

50.0%

AmountRepeatNew

52.1%

Repeat
New

47.6%

52.4%

※It is the ratio of overseas use (outbound: Japan ⇒ overseas).
Copyright (C) 2019 VISION INC. All Rights Reserved.

44

“GLOBAL WiFi” Business

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

1.4%
5.7%

5.8%

Gender/Corporate or individual

1.4%

17.4%

15.6%

8.6%

6.8%

14.0%

11.3%

43.8%
32.0%

13.5%

10.9%
11.8%

Individual / Female

Individual / Male

Unknown

Corporate / Female

Corporate / Male

0.9%

0.6%

Under 18

19-24

25-29

30-34

35-39

45-49

50-54

55-59

Over 60

2.3%

Age (Male)

7.9%

40-44

7.5%

11.0%

9.6%

25-29

30-34

35-39

45-49

50-54

55-59

Over 60

Unknown

Copyright (C) 2019 VISION INC. All Rights Reserved.

17.0%
10.4%

13.2%

19-24

21.8%

9.0%

13.2%

Under 18

4.9%

9.5%

13.2%

12.8%

1.9%

3.6%

9.2%

6.8%

Age (Female)

40-44

13.8%

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

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

Number of issues

13,560 units

Issue price

JPY1,600 per stock acquisition right

Total issue price

JPY3,510,684,000

TargetDirectors (excluding 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.

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

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) 2019 VISION INC. All Rights Reserved.

46

Business Summary

Copyright (C) 2019 VISION INC. All Rights Reserved.

47

VISION INC.
Code

9416

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

Incorporated

•
•
•
•

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

Number ofConsolidated
Employees

737 (145)
Domestic: 652 (136)
Global: 85 (9)(Average temporary
employees)(As of March 31, 2019)

AffiliatedCompanies

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

Vision Inc.
Best Link Inc.
Members Net Inc.
Alphatechno Inc.
BOS Inc.
RaPid Corp.
Vision Ad Inc.

GLOBAL WIFI.UK LTD

Domestic: 6
Global: 12

Global WiFi France SAS
Vision Mobile Italia S.r.I.

(As of March 31, 2019)

Business

Domestic Affiliated Companies： 6
Domestic Operation Bases： 16
Domestic Airport Counter： 16
Global Affiliated Companies： 12

GLOBAL WiFi
Information andCommunications Service

上海高效通信科技有限公司

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) 2019 VISION INC. All Rights Reserved.

48

History and Evolution of Sales
Changed the market to the 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
(domestic) 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

Irregular
perioddue tochangesin fiscal
year-end.

Copyright (C) 2019 VISION INC. All Rights Reserved.

49

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) 2019 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 business50

Two Business Segments“GLOBAL WiFi” Business•

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

Rental service
Connectable with multiple users andmultiple devices (companion,
smartphone, laptop, etc.)

Information and Communications
Service Business••

Offer the most suitable informationand communications-related products
and services tailored to the stage andneeds of the company since starting
business.
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) 2019 VISION INC. All Rights Reserved.

Security

Electric Power51

Contributing to the Information and Communications Revolution

Copyright (C) 2019 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 shall not obligated to
update and revise the “forward-looking statements” included in this announcement.
Vision Inc.
•
Contact： ir@vision-net.co.jp

Copyright (C) 2019 VISION INC. All Rights Reserved.

53