2nd Quarter FY2018

Financial Results

August 9, 2018
Vision Inc.
(1st Section of the Tokyo Stock Exchange, code： 9416)

2Q FY2018 Financial Results• 2Q FY2018 Overview of Financial Results• FY2018 Outlook of Financial Results• Progress made in FY2018• Growth Strategy• Business Summary• 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
Copyright(C) 2018 VISION INC. All Rights Reserved.

2

2Q FY2018 Overview of Financial Results

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

3

2Q FY2018 Overview of Financial Results (Cons.)
Updated record highs for both sales and each profit.
(JPYmn, %)FY2018/2Q Actual result

Account title

AmountComposition
ratio

Increase or decrease
AmountIncrease or
decrease ratio

9,855

100.0

+1,504

+18.0

8,350

100.0

+1,398

+20.1

5,819

59.0

+967

+19.9

4,851

58.1

+853

+21.4

1,236

12.5

+385

+45.4

850

10.2

+292

+52.3

1,245

12.6

+395

+46.5

FY2017/2Q Actual result

850

10.2

+319

+60.1

Net income attributable toparent company shareholders

809

8.2

+237

+41.6

FY2017/2Q Actual result

571

6.8

+229

+67.2

Sales
FY2017/2Q Actual result

Gross profit
FY2017/2Q Actual result

Operating profit
FY2017/2Q Actual result

Recurring profit

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

4

Reasons for Increase in Operating Profit(JPYmn)+537

Gross profit increase
due to increased sales
Cost ratio ▲0.9 points

Operating profit margin 12.5% (+2.4%
points YoY)–•–

2Q is a low season.

“GLOBAL WiFi” Business ：As sales increase, profitability further
improves by various measures to reduce
costs and improve productivity.
• Reduce data-line procurement cost
• Utilize CLOUD WiFi, increase shipping
ratio

SG&A-to-sales
ratio▲1.4 points+1,504

Increase sales due to favorable sales.

+581
Gross profit+JPY967mn(+19.9%)––•Improve efficiency of labor costs–

850
Operatingprofitmargin10.2％
FY2017/2Q
Cumulative

–

1,236

Operating profit+JPY385mn(+45.4%)

Operatingprofitmargin12.5％

Increase sales Increase cost Increase SG&A
expenses

FY2018/2Q
Cumulative–

Improve data usage efficiency
Reduce operational cost (Improve
efficiency by reducing shipping
process)
Improve efficiency for responding
inquiries (AI utilization FAQ, chatbot
etc.)
Improve efficiency to deliver devices(“GLOBAL WiFi for Biz” for corporate
customers, add automatic pick-up
locker “SmartPickup”, etc.)

Information and Communications
Service Business：
Increase sales and profits by shifting to
profitable services and up/cross selling
strategy.

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

5

Segment Actual Result•“GLOBAL WiFi” Business： Sales +26.5%, and Segment profit +55.8%.

•

Information and Communications Service Business： Sales +6.5%, and Segment profit +5.9%.
(JPNmn, %)Sales

FY2017/2Q
Actual result

AmountAmountIncrease or decrease
Increase or
decrease ratio

Amount“GLOBAL WiFi”

5,987

4,732

+1,254+26.5

Information andCommunications Service

3,827

3,592

+235

+6.5

Subtotal

9,814

8,324

+1,489+17.9

Others

40

25

+15

+58.5

Adjustment amount

－

－

－

－

Total (Cons.)

9,855

8,350

+1,504+18.0“GLOBAL WiFi”

1,149

737

+411

+55.8

19.2

15.6

+3.6

－

634

599

+35

+5.9

16.6

16.7

△0.1

－

Subtotal

1,783

1,336

+446

+33.4

Others

△67

△47

△19

△41.5

Adjustment amount

△480

△438

△41

△9.4

Total (Cons.)

1,236

850

+385

+45.4

Profit margin

Information andCommunications Service
Segment
profit

FY2018/2Q
Actual result

Profit margin

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

6

“GLOBAL WiFi” BusinessTransition of Performance
2Q is a low season, since travelers abroad are the fewest throughout the year.
However, continue to increase sales and profit by capturing corporate demand steadily etc.
The rental number increases steadily.

–•

Capture corporate demand (business trips with less seasonal fluctuation etc.), accumulate repeat
users, etc.

Continually work on measures to improve profitability, such as cost and operational cost reduction.

–
1Q
2Q
3Q
4Q

SALES

12,951(Forecast)+24.6%

1Q
2Q
3Q
4Q

SEGMENT PROFIT(JPYmn)1,946(Forecast)

10,392+31.8%

7,882+30.6%

6,035
1,602

2,073

1,308

+39.7%

3,022 +26.5%

2,226
1,781

FY2015FY2016FY2017+92.2%

245

593

494

256

146

114

3,089

2,505

1,140

224

631

797
+55.8%

448

2,898

1,697

1,297

1,593

6,964

2,636

2,329

1,826

+22.2%FY2018

60

162

252

FY2015FY2016271
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
Increase in sales and profits. Continue stable growth.
––

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

1Q
2Q
3Q
4Q

A key effort of up/cross selling strategy was successful.
Electric power service “Haruene Denki” subscription agency (cross selling) is strong.

SALES

7,504
(Forecast)+7.9% 6,948

7,104+5.6%
+2.2%

6,440
1,673

1,601

1,629

1,730

1,749

1,764

1,725
3,677
1,786

1Q
2Q
3Q
4Q

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

1,024

903
214

2,009

244

1,703

1,810

1,818

FY2015FY2016FY2017FY2018

686

287

+5.9%

221

296

316

337

264

282

296

FY2016FY2017FY2018

269

1,536

285

219

+6.5%

1,782

1,319 (JPYmn)

198
FY2015(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, %)FY2018/2Q

FY2017

AmountAmountCompared to the previous
consolidated fiscal year end

Increase or
decrease

Increase or
decrease ratio

AssetsCurrent assets

9,021

8,995

+26

+0.3

Cash and deposit

6,150

6,256

△106

△1.7

Accounts receivable

1,771

1,485

+286

+19.3

Other current assets

1,049

1,228

△178

△14.6

3,139

2,488

+651

+26.2

Tangible fixed assets

1,057

859

+197

+23.0

Intangible fixed assets

717

590

+127

+21.5

1,364

1,038

+326

+31.4

12,161

11,483

+677

+5.9

3,039

2,895

+144

+5.0

Fixed liabilities

4

2

+1

+76.3

【Total liabilities】

3,044

2,897

+146

+5.1

9,117

8,586

+530

+6.2

74.8

74.6

+0.2

－

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

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.

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

FY2015FY2016FY2017FY2018

２Ｑ

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

Sales

4,922

4,933

20,599Composition ratio (vs. FY)

23.9

23.9

Operating profit

736

499

Composition ratio (vs. FY)

32.7

22.2

Operating profit margin

15.0

10.1

2Q Forecast
Sales: 9,761
Operating profit: 989→
2Q Actual result
Sales: 9,855 (+1.0%)
Operating profit: 1,236(+20.0%)

－

2,252
－
10.9

(Attention) Regarding the quarterly results in FY2015, year-on-year ratio is for reference, because we do not prepare for the quarterly financial statements.
13
Copyright(C) 2018 VISION INC. All Rights Reserved.

Progress made in FY2018

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

14

FY2018 Priority Policy (Progress in 2Q)•

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〇Travel Related Service Platform

Promote diversification of our own channel (Enhance SNS channel etc.)
Build a system for handling online orders just before departure• Acquire customers on departure day that we have missed so
far ＝ Net increase
Promote corporate customers introducing “GLOBAL WiFi for Biz”
• Domestic use is also standard service, having it used on adaily basis
Solutions for travel agencies and related operators• Integrate into travel products by utilizing CLOUD WiFi (offer
wholesale + media functions)
Domestic use (for foreign travelers visiting Japan and Japanese) arestrong

•
•
•

•
•

•
•

•

expand the service this autumn)〇Information and Communications Service Business〇Information and Communications Service Business•

Expand inflow channels, “BIMAKE” website (Vision Business Market)
etc.

•

Promote the media business for foreign travelers visiting Japan• Sell China's largest lifestyle information service platform“Dazhong Dianping“ official service (established Vision Ad Inc.)
Increase sales in media for foreign travelers visiting Japan• Evaluated the features (direct delivery, attribute-based
measures etc.), increase companies that advertisement isissued, and continued customers
Pick-up reservation and service "Pro Drivers"• Available in 150 countries and 500 cities• Start pick-up service to/from domestic airport (planned to•

Launch high-demand services (electric power service subscription
agency etc.)
Sell in-house developed services (workflow system, call system etc.)

Stability (Improve profitability)〇“GLOBAL WiFi” Business••〇Whole Company

Measures to improve sales efficiency• Priority efforts on stable base ... Repeat customers, corporate
customers
Reduce cost / SG&A expenses• Improve data-line usage efficiency, and shipping operation efficiency• Promote to introduce CLOUD WiFi (Approx. 78% of total
shipment)• Promote to improve efficiency for responding inquiries by utilizing AI
and chatbot•

By introducing RPA, promote routine work labor saving etc.

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

15

Progress in “GLOBAL WiFi” Business (Detailed Topics)〇Introduce “CLOUD WiFi”•
A Wi-Fi router equipped with next-generation communication technology that manages SIM on
the cloud.
•Telecommunication carriers all over the world can be allocated without physically inserting /changing SIM.

••

Increase to approx. 78% of shipping Wi-Fi routers (As of March 2018：approx. 67％).
Benefits：–––•

Reduce SG&A expenses ← Labor saving of shipping operations
Reduce telecommunication cost ratio ← Improve usage efficiency of data telecommunication
Improve profit ← Utilization service/new method (realizable because there is no charge of line cost at inactive time)

Utilization：–(Utilization service) “GLOBAL WiFi for Biz” for corporate customers•

Keep it at the customer‘s place ⇒

Order

•

–
–

Receive

ReturnDomestic (Japan) internet connection available (free up to 3GB)
＝ Have it used on a daily basis• Plan to offer for individuals as well
(Utilization service) Integrated into overseas travel products
by travel agencies(New method) Expand inventory at each airport counter•

Minimize opportunity losses by eliminating out ofstock–

Connect to a network in France

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

Connect to a network in USA

Acquire customers who order on the day

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

16

Smart Strategy
Automatic pick-up 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.

17

Airport Counter and SmartPickup•••

15 airport counters in Japan, and 10 automatic pick-up lockers are installed at 5 airports.
Enhance users’ touch points such as new counter openings, relocation, and expansion.
The service level is optimized according to customers.
••

Eliminate waiting time thoroughly for customers who do not need explanation (such as repeater layer).
Airport staff responds to customers who need explanation.

★SmartPickup installed

Asahikawa Airport
New Chitose Airport

Niigata Airport
Komatsu Airport

Sendai Airport

Itami Airport ★

KABUKI-JO (Shinjuku)

Kansai Airport ★

Haneda Airport ★
Narita Airport ★

Fukuoka Airport

Shizuoka Airport

Miyazaki Airport

Chubu Airport ★

Kagoshima Airport

Naha Airport(Return BOX)

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

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

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

20

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

Overseas
travelers

FY2017 Japan total approx. 2.69mn people/18.83mn nights
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 information (Media)
Promotional
materials

Insurance Coupons

Video

Facility・Counter

Shop &
Duty-freeshop

Hotel &
Minpaku

ARPU
improvement

Useful services
SNS

Rental service of wearable
translation device

Email

Tours

Rentalcars

Pick-up service etc.

TouristGourmetattractions

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
21

Travel Related Service Platform (Media)•

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.
22

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 3 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

23

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.

24

Growth Strategy

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

25

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.

26

“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

–

27

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.

28

“GLOBAL WiFi” BusinessProfit Structure
Summary

Account title①Rental price per day × number of usage days

Sales

※Average：JPY1,000/day

Average usage days：7 days

※Options such as insurance, mobile battery etc.

②Monthly charge + data telecommunication fee × 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) 2018 VISION INC. All Rights Reserved.

29

Service and Profitability Improvement Scheme(“GLOBAL WiFi” Business)

Beforeimmigration
Airport counter

Order

Purchase

Channel•••Our web channel
SNS Utilization
Repeater channel(various CRM measures)
External partner
AI utilization FAQ••↓• Acquire customers ～accumulate repeaters• Improve efficiency to
attract customers• Reduce customer
response costs

ReceiverouterShipping

Move Tourism/Business Move
Departure

ArrivalMaintenance/shipping
•
•
•
•
•

After arrival
Airport counter

Manage equipment
Manage data
telecommunication line
Manage SIM operation
Shipping control system
Progress towards CLOUDSIM↓• Reduce work process• Cost control byimproving accuracy ofdemand forecast

Service operation•

Monitor data
telecommunication andequipment↓• Cost control bymanaging appropriate
telecommunication
usage capacity• Maintain service quality

ReturnCRM••

Continuous contact by
various CRM measures
Induce corporate
contract↓• Promote becoming a
repeater• Increase in corporate
customers (high repeat
ratio, ARPU)• Reduce customer
acquisition costs

Receive/return••

Place our counters at
airports
IoT utilization (automaticdelivery locker) etc.

↓
• Increase number ofcustomer service• Improve sales by customer
service• Reduce costs by short timedelivery and process

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

30

“GLOBAL WiFi” Business

Growth Story“GLOBAL WiFi” penetration ratio (Japan) ※11.7%

Overseas use share (Outbound)
Domestic use share (Inbound + Japanese)

6.4%

Share in the Japanese market (Out + in)

0.4%
0.3%
FY2012

2.0%
0.0%

5.8%

4.4%

1.4%

0.2%
FY2013

8.3%

2.7%
0.7%
FY2014
1,650,969

Rental number (Full year Transition)

62,615

Overseas business (Except for use in Japan,

3.5%
1.2%
FY20154.7%
2.1%
FY20162.2%
FY2017

Rental number (2Q cumulative transition)
966,916
31,250285,708

Overseas ⇒ Overseas)
Domestic use (Inbound + Japanese)

180,836

736,050

1,144,045

Overseas use (Outbound)

32,46866,556

127,890

190,665

492,806

783,050

516,199
17,73435,512

241,737
55,507

10,520
7,511

6,236
244
49,027

223,706

FY2012FY2013

26,52843,66990,906

1,302,646

84,792754,830
575,692

886,824
381,486

648,475
462,953

FY2014FY2015FY2016※ Created from Japan Tourism Agency material by us

FY2017FY2016/2Q

FY2017/2Q

FY2018/2Q

cumulative

cumulative

cumulative

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

31

＜Reference＞ “GLOBAL WiFi” Business
Market Size•

Inbound (Overseas travelers to Japan)：
–
–
–

•

•

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

60,000Government’s
targetInbound
Outbound

予想
40,0001,322

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.

32

Change Brand Logo with a New Determination■ New “GLOBAL WiFi” brand logo

Replacing old logo with new logo in various places will be carried out in order,
and will be completed within 2018.

■ Concept“GLOBAL WiFi connected all over the world”
This brand logo was designed with the concept of “GLOBAL WiFi connected all over the world”.
A simple and powerful new logo mark combining the earth mark and the Wi-Fi markexpresses a sense of security and trust that Wi-Fi is connected anywhere in the world.
Logo type with a little italic symbolizes the advanced GLOBAL WiFi attitude,
going beyond borders and constraints.

■ Statement
Now, the world is changing with unprecedented scale and speed.
Meanwhile, 7 years have passed since GLOBAL WiFi debuted with the thought of “offer comfortablemobile internet environment all over the world”. Thanks to you, the share is No. 1. ※We will renovate the brand mark this time. Responding to trust and needs, even further.
While staying close to customers, we will create a service that expands customers’ behavior andexperiences.
We express such a determination. Together, walk the world. Anytime. And anywhere.
Please expect GLOBAL WiFi in the future.
※Number of users and sales survey of “Rental Wi-Fi service for overseas (domestic → overseas) in 2016” (Tokyo Shoko Research in
December 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 BusinessProfit Structure
Account
title

Sales

Summary
Telephone line arrangements, cellphone,electric power etc.

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

・Business brokerage fee (commission)・Sales revenue

・Continuation fee (according to customers’ usage※Fee from leasing company and credit

situation)company※Fee from telecom carriers and primary agents・Maintenance fee(incentive)※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) 2018 VISION INC. All Rights Reserved.

35

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–––

Approx. 140 thousand companies annually.
(Excluding the relocation number of offices thatare not obliged to apply for registration)
Cover change procedures etc. on addition andrelocation.
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.

36

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
37

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.

38

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.

39

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.

40

APPENDIX

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

41

Group Structure
Number of affiliated companies

Number of operation bases

Overseas

Airport counter (directly operated)

Domestic

Overseas
Domestic

12
2
7
2011

10

12
2

4

3

2014

2017

347

222

2011

146

12

15

2018/2Q

2011

2014

2017

2018/2Q

552
169

2014

Personnel classification
Profession
Clerical
Sales

252
351

2017

12

14

76

271

12

14

497

Male

10

14

7

Employee count (Full-time)
Female

252
30

7

14

383

2018/２Q

61

497
41
347
28

48
203

129

191

190

2011

2014

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

191

552

265

301

2017

2018/２Q
42

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)43

“GLOBAL WiFi” Business

Customer Attributes(Corporate・Individual)
2Q FY2018 ※Fiscal period(Apr.-Jun.) Actual result
Rental number

42.6%

Corporate
Individual

47.6%

57.4%

2Q FY2017 ※Fiscal period(Apr.-Jun.) Actual result

AmountCorporate
Individual

52.4%

Rental number

50.3%

AmountCorporate
Individual

42.8%
49.7%

Corporate
Individual

57.2%※It is the ratio of overseas use (outbound: Japan ⇒ overseas).
Copyright(C) 2018 VISION INC. All Rights Reserved.

44

“GLOBAL WiFi” Business

Customer Attributes(Corporate・Individual)
2Q FY2018 ※Cumulative period(Jan.-Jun.) Actual result
Rental number

AmountCorporate
Individual

39.9%

Corporate
Individual

49.2%

60.1%

50.8%

2Q FY2017 ※Cumulative period(Jan.-Jun.) Actual result

Rental number

AmountCorporate
Individual

46.3%

Corporate
Individual

46.6%

53.7%

53.4%

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

45

“GLOBAL WiFi” Business

Customer Attributes(New・Repeat)
2Q FY2018 ※Fiscal period(Apr.-Jun.) Actual result
Rental number

58.0%

42.0%

2Q FY2017 ※Fiscal period(Apr.-Jun.) Actual result

Rental number

44.0%

AmountRepeatNew

RepeatNew

AmountRepeat
New

56.0%

57.7%

42.3%

Repeat
New

43.6%

56.4%

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

46

“GLOBAL WiFi” Business

Customer Attributes(New・Repeat)
2Q FY2018 ※Cumulative period(Jan.-Jun.) Actual result
Rental number

55.0%

45.0%

AmountRepeatNew

RepeatNew

2Q FY2017 ※Cumulative period(Jan.-Jun.) Actual result

Rental number

47.1%

55.0%

45.0%

AmountRepeatNew

Repeat
New

52.9%
46.6%

53.4%

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

47

“GLOBAL WiFi” Business

Customer Attributes(By Gender / Age・Past Cumulative Total)
5.8% 1.6%

By age6.1%

By gender, corporate / individual

0.8%

12.8%

18.9%

8.7%

14.0%

41.8%

7.4%

11.7%
14.4%
11.5%

31.9%

12.6%
Under 18

19-24

25-29

30-34

35-39

40-44

45-49

50-54

55-59

Over 60

Unknown

By age (Male)

1.2%
4.0%

3.7%

3.5%

Individual / Female

Individual / Male

Corporate / Female

Corporate / Male

0.3%

0.3%
1.8%

3.8%

5.4%

5.0%

By age (Female)
1.0%
2.5%

9.1%

4.8%

6.9%

8.6%

4.7%

6.9%
7.0%

5.6%

6.8%
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
48

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.

49

Business Summary

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

50

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

693 (141)
Domestic: 614 (133)Global: 79 (8)(Average temporary
employees)

AffiliatedCompanies

Korea, USA (Hawaii), Hong Kong,
Singapore, Taiwan, UK, Vietnam,
China (Shanghai), France, Italy,
USA (California), New Caledonia(As of June 30, 2018)

Domestic: 6
Global: 12

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

GLOBAL WIFI.UK LTD(As of June 30, 2018)

Business

Domestic Affiliated Companies： 6
Domestic Operation Bases： 13
Domestic Airport / Port Counter： 15
Global Affiliated Companies： 12

GLOBAL WiFi
Information andCommunications Service

Global WiFi France SAS
Vision Mobile Italia S.r.I.
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) 2018 VISION INC. All Rights Reserved.

51

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.

52

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 business53

Two Business Segments“GLOBAL WiFi” Business•

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

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

Information and Communications
Service Business••

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 Power54

Contributing to the Information and Communications Revolution

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

55

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.

56