FY2020

Financial Results

February 15, 2021
Vision Inc.
TSE 1st Section： 9416
1

FY2020 Financial Results

Performance Highlights and
FY2020 Results

P.3

FY2021 Forecast of Financial
Results

P.10

Efforts for Growth(Growth Strategy Focusing on with
COVID-19 and after COVID-19)

Sustainable Growth andCorporate Value Improvement

P.16

P.38

- ESG Activities -Copyright(C) 2021 VISION INC. All Rights Reserved.

2

Performance Highlights
and FY2020 Results

Copyright(C) 2021 VISION INC. All Rights Reserved.

3

Consolidated Profit and Loss Statement(JPYmn, %)FY2020ResultItems

16,654Sales

FY2019ResultChange27,318 -10,663

YoY

-39.0

Cost of sales

7,860

11,627-3,766-32.4

Gross profit

8,793

15,690-6,896-44.0

Gross profit margin

52.8

57.4

-4.6

－

SG&A expenses

8,689

12,365-3,675-29.7

SG&A-to-sales ratio

52.2

45.3

+6.9

－

EBITDA

-883

4,304

-5,187－

Operating profit

103

3,325

-3,221-96.9

Operating profit margin

0.6

12.2

-11.5

－

Recurring profit

227

3,358

-3,130-93.2-1,1832,226-3,410－

Profit or loss (-) attributableto owners of parent(Note) EBITDA = Earnings before Interest, Taxes, Depreciation and Amortization
Copyright(C) 2021 VISION INC. All Rights Reserved.

4

Factors for Change in Operating Profit
Sales“GLOBAL WiFi” Business: Actively acquire various consumer needs for using mobile Wi-Fi router. The number of rental contracts byoutbound and inbound travelers have continued to be almost zero since March 2020.
Information and Communications Service Business: Decrease sales due to changes in business structure (see p.28) andstrengthened sales of in-house services (monthly). Sales of cost reduction products and mobile communication equipment (forteleworking, etc.) are strong.
Cost of sales“GLOBAL WiFi” Business: Overseas communication costs are significantly reduced due to pay-as-you-go contracts in which charges
are incurred based on communication usage.
Information and Communications Service Business: Increase cost of sales-to-sales ratio due to increased sales of mobile
communication equipment (by increasing the ratio of products that are purchased).
SG&A expenses
Personnel expenses: Decrease performance-linked allowance. Terminate temporary staff contracts following the expiry of term ofcontract such as shipping center staff and airport counter staff due to a significant decrease in the number of rental contract.
Advertising expenses: Reduce advertising expenses for websites to meet demand (for listing, etc.).
Other SG&A expenses: Review and reduce various costs. Decrease expenses linked to decrease in sales (shipping expenses, travel
expenses, supplies expenses, payment fees, etc.).
Operating profit
Continue to be in the black since July 2020, when became profitable in a single month.
Operating profit margin is 0.6% (approx. -11.5 percentage points YoY).

(JPYmn)

2,970
2,970
3,325

-7,412-10,663-7,439Operating profit
FY2019Sales+2,265+2,265+3,766
Cost of sales

+823

+847

+2,004+1,175103

Personnel

Advertising

Other SG&A

Operating profit

expenses

expenses

expenses

FY2020

Copyright(C) 2021 VISION INC. All Rights Reserved.

5

Segment Result(JPYmn, %)Segment result

FY2020Result

FY2019ResultChangeYoY

16,65427,318-10,663-39.0“GLOBAL WiFi”

7,278

17,732-10,454-59.0

Information andCommunications Service

8,806

8,955

-149

-1.7

16,084

26,688-10,603-39.7

Others

580

637

-56

-8.9

Adjustments

-10

-7

-3

－

Segment profit or loss (-)

103

3,325

-3,221-96.9“GLOBAL WiFi”

-90

3,301

-3,392－

Segment profit margin

-1.2

18.6

-19.9

－

Information andCommunications Service

1,520

1,363

+157

+11.5

Segment profit margin

17.3

15.2

+2.0

－

Subtotal

1,429

4,665

-3,235-69.4

Others

-392

-266

-125

－

Adjustments-933-1,073

+140

－

Sales

Subtotal

Copyright(C) 2021 VISION INC. All Rights Reserved.

6

“GLOBAL WiFi” Business
Performance Change
Turn profitable in a single month in 4Q consolidated accounting period bycontinuing low-cost operation and capturing various needs.
Sales of standby type “GLOBAL WiFi for Biz” for corporate customers are strong.
Actively capture the needs for teleworking, online classes, and local governments (the Board of
Education, etc.) for the GIGA School Concept. Making the most of the performance and know-how ofthe domestic Wi-Fi router rental business since 2010, acquire various usage needs (substitution whenmoving, hospitalization, business trip, combined use with home internet, various events, etc.).
1Q
2Q
3Q
4Q

1Q SEGM EN T P R O F I T O R LO SS (- )

SALES

2Q

17,732

13,5053,301

3Q+31.3%+36.8%

4Q

4,462+51.5%

10,392 3,589 5,084

7,882 2,636+30.6%

6,035 2,073
1,602
1,826
1,308
1,297
FY2015

2,329
1,697

3,022
2,226

+39.7%-59.0%

7,278

3,929
4,109
2,898

1,781

2,505

3,089

FY2016FY2017FY2018430

2,413+30.0%+31.8%(JPYmn)

1,371
1,272
1,286

4,075

3,347

FY2019FY20201,140+92.2%

245

593

494

114
256
60
162

FY2015

495

1,274

1,593
224
631

769
724
448

271

146
252

466

FY2016FY2017701

FY2018871

FY2019

-90
326
-347
-27
-42

FY2020(Note) Figures of the quarterly results in FY2015 are referenced values because the quarterly financial statements have not been prepared.
Copyright(C) 2021 VISION INC. All Rights Reserved.
7

Information and Communications Service Business
Performance Change
Sales of cost reduction products and mobile communicationequipment (for teleworking, etc.) are strong.
Develop sales activities that accurately capture the growing companies’ needs to reduce costs (communication
charges, electricity charges, etc.) and support teleworking due to the spread of COVID-19.
Decrease sales due to changes in business structure and strengthened sales of in-house services (monthly).
Orders received of monthly website production service “Vision Crafts!” is strong.
Increase stock earnings and in-house services (monthly), which will be the revenue base (recurring revenues)
for the next fiscal year and beyond.
(JPYmn)
1Q
1Q
SEGMENT PROFIT
SALES
2Q
2Q
1,520
-1.7%
+11.5%
3Q
3Q
8,955 8,806
1,363
4Q+15.2%
4Q+11.9%
335+3.9%+9.4% 7,775
1,218
188
+2.2%
2,115 2,139
1,172
+7.9%

6,440
1,673
1,601
1,629
1,536

6,948 7,104
1,730 1,725
1,749

1,786

+14.4%

1,024

1,970

+13.4%

2,330

244

1,703

1,782

2,004

269

1,810

1,818

2,515

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

287

198

296
264

316

282

342

367

350

299

482

517

371

221

2,009
2,302

212

219

214

1,977
2,207

1,764

2,146

903

285

337

296

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020(Note) Figures of the quarterly results in FY2015 are referenced values because the quarterly financial statements have not been prepared.
Copyright(C) 2021 VISION INC. All Rights Reserved.
8

Consolidated Balance Sheet
Equity ratio: 77.3％ (approx. -1.4% points from the previous quarter)
Cash and deposits: JPY571mn increase.
Cash out in FY2020: Corporate tax payments JPY668mn, treasury stock acquisition JPY986mn* No borrowing of commitment line (set in May 2020) and other overdrafts.
(JPYmn, ％)As of Dec.
31, 2020

Total assets

As of Sep.
30, 2020

11,313 11,046

ChangeRate ofchangeAs of Dec.
31, 2019

Rate ofchangeChange+266+2.4 15,173-3,860 -25.4

Current assets

8,872

8,689

+183

+2.1

11,792-2,919-24.8

Cash and deposits

6,650

6,079

+571

+9.4

8,485

-1,835-21.6

Non-current assets

2,440

2,357

+82

+3.5

3,381

-940

-27.8

Total liabilities

2,543

2,330

+213

+9.1

4,268

-1,724 -40.4

Current liabilities

2,507

2,271

+235

+10.4

4,222

-1,714

-40.6

36

58

-22

-38.7

46

-9

-21.6

8,769

8,716

+52

+0.6 10,905-2,136 -19.6

11,313 11,046+266+2.4 15,173-3,860 -25.4

Non-current
liabilities

Total net assets
Total liabilities andnet assets

Equity ratio

77.3

78.7

-1.4

－

Copyright(C) 2021 VISION INC. All Rights Reserved.

71.7

+5.6

－
9

FY2021 Forecastof Financial Results

Copyright(C) 2021 VISION INC. All Rights Reserved.

10

Assumption of FY2021 Forecast“GLOBAL WiFi”

PremiseCommonMonetize our domestic business and build new businesses and services
making the most of the customer base (corporate customers working
with overseas companies, individual customers who like traveling, etc.).
Continue to improve profitability and competitive advantage bycontinuing the low-cost operation system that even when overseas
demand gradually recovers.
Correspond to next-generation communication standards andtechnologies (5G and eSIM, etc.).

Domestic

Calculate based on the growth rate in the previous fiscal year, taking into
account the seasonal index in each sales channel.
Expect to make a budget to orders received through the “GIGA School
Concept” by March 2021 when subsidies to each local government willend.
Forecast the demand for teleworking conservatively, because the impact
of COVID-19 on corporate activities is uncertain.
Inbound (foreign visitors to Japan): After October 2021, it is expected torecover by about 25% compared to that in 2019.

Overseas

Outbound (travelers from Japan to overseas): Expect to remain sluggish
in FY2021, same as that after March 2020. After October 2021, it isexpected to recover by about 25% compared to that in 2019.
Make a budget to the increased number of contracts of the standby type
“GLOBAL WiFi for Biz” for corporate customers.
Copyright(C) 2021 VISION INC. All Rights Reserved.

11

Assumption of FY2021 Forecast
Information andCommunications Service

PremiseCommonGrow the business centered on monthly in-house services (recurring
revenue) while slightly increasing and maintaining the revenue fromsubscription agency contracts and equipment sales (one-time revenue).
Under the circumstances of COVID-19, the impact on visiting sales isminor by utilizing online sales.
Flexibly respond to changes in the external environment, taking
advantage of strength to have multiple businesses (products/services)and sales channels.

Office automationequipment,Internet media

Expect to increase due to demand recovery, although affected by the
decline in domestic leasing transaction volume.
Actively sell monthly website production service “Vision Crafts!”.

Fixed-line
communication,
Mobilecommunication,
Broadband

Acquire needs for mobile communication equipment due to teleworking
demand, increase demand for corporate smartphones, and actively
capture needs for monthly services (VWS, JANDI, compensation
services, etc.).
Conservatively expect the number of starting business.

Eco solution

Actively accept orders of electricity discount services, targeting storebased operators.
Copyright(C) 2021 VISION INC. All Rights Reserved.

12

FY2021 Forecast of Financial Results(JPYmn, %)Items

FY2021
Forecast

FY2020ResultChangeYoY

15,163

16,654-1,491-9.0

Cost of sales

6,486

7,860

-1,374-17.5

Gross profit

8,676

8,793

-117

-1.3

57.2

52.8

+4.4

－

8,268

8,689

-421

-4.8

SG&A-to-sales ratio

54.5

52.2

+2.4

－

Operating profit

407

103

+303

+292.4

Operating profit margin

2.7

0.6

+2.1

－

Recurring profit

397

227

+169

+74.4

Profit or loss (-)
attributable to owners ofparent245-1,183+1,429－Sales

Gross profit margin
SG&A expenses

Copyright(C) 2021 VISION INC. All Rights Reserved.

13

Segment Forecast(JPYmn, %)Segment Forecast

FY2021
Forecast

FY2020ResultChangeYoY

15,163

16,654-1,491-9.0“GLOBAL WiFi”

5,816

7,278

-1,461-20.1

Information andCommunications Service

8,927

8,806

+120

+1.4

14,74316,084-1,341

-8.3

419

580

-161

-27.8

0

-10

+10

－

Segment profit or loss (-)

407

103

+303

+292.4“GLOBAL WiFi”

77

-90

+168

－

Segment profit margin

1.3

-1.2

+2.6

－

Information andCommunications Service

1,397

1,520

-123

-8.1

Segment profit margin

15.7

17.3

-1.6

－

Subtotal

1,474

1,429

+45

＋3.2

Others

-11

-392

+381

－

-1,055

-933

-122

Sales

Subtotal
OthersAdjustments

Adjustments

Copyright(C) 2021 VISION INC. All Rights Reserved.

－
14

Forecast for the Full Year (Quarterly Change)(JPYmn, %)

1Q
Sales

5,686

21,503

22.9

22.9

27.7

26.4

－

736

499

900

348

2,484

29.6

20.1

36.2

14.0

－

Operating profit margin

15.0

10.1

15.1

6.1

11.6

Sales

6,470

6,467

7,610

6,770

27,318

23.7

23.7

27.9

24.8

－

980

710

1,280

354

3,325

29.5

21.4

38.5

10.7

－

Operating profit margin

15.1

11.0

16.8

5.2

12.2

Sales

5,989

3,641

3,477

3,546

16,654Composition ratio (vs. FY)

36.0

21.9

20.9

21.3

－

Operating profit or loss (-)

488

-503

73

45

103

Composition ratio (vs. FY)

－

－

－

－

－

8.1

-13.8

2.1

1.3

0.6

7,274

7,888

15,163

48.0

52.0

－

126

281

407

31.0

69.0

－

1.7

3.6

2.7

Operating profit

Operating profit
Composition ratio (vs. FY)

Operating profit marginSales

FY2021(Forecast)

FY

5,961

Composition ratio (vs. FY)

FY2020

４Ｑ

4,933

Composition ratio (vs. FY)

FY2019３Ｑ

4,922

Composition ratio (vs. FY)

FY2018２Ｑ

Composition ratio (vs. FY)
Operating profit
Composition ratio (vs. FY)
Operating profit margin

Copyright(C) 2021 VISION INC. All Rights Reserved.

15

Efforts for Growth(Growth Strategy Focusing onwith / post COVID-19 social environment)

Copyright(C) 2021 VISION INC. All Rights Reserved.

16

Policy on Growth Strategy

PolicyKey phrase

Sales channel
Business
structure

Customerbase

Existing businessNew business / Service building

Increase productivity.

Develop a new business as athird pillar.

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

Three-pillar business structure that
responds to changes in the times.

 Provide products and services
meeting the needs of customers andthe times.
 Build and strengthen sales system(online).
 Strengthen up-selling and crossselling (including online negotiations).
 Brush up the revenue structure.
 Strengthen and expand in-houseservices.

WEB

 Adapt to With COVID-19
environment, so-called New Normal.
 Utilize sales channels and businessstructure.
 Utilize the customer base.
 Service that responds to customer
feedback.
 Regional revitalization.

Sales

CLT

marketingShops

Shipping
center

Airport counters
etc.

Startups, growing
corporate customers

Online / Offline

Customer Loyalty Team

Corporate customers
working withoverseas companies

Governments /local governments,
Schools, etc.

Copyright(C) 2021 VISION INC. All Rights Reserved.

Individual customers
who like traveling17Actively Expand Sales of “GLOBAL WiFi for Biz”
- Competitive Advantage When Recovering Travel Actively expand sales of standby type domestic plan option “Global WiFi for Biz”
for corporate customers.
Available for teleworking with options.
Contracts from corporate customers are favorably obtained
because the convenience of the plan is permeating throughits domestic use.
Income from basic monthly charges (recurring revenue) increases.
Connect Internet anywhere with one digital device

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

“Global WiFi for Biz”
Users hasexceeded
15mn!
*1Companies
introducing Wi-Fi

rental foroverseas use
41,000 *2“No need” to apply, receive, return

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

Just bring your device kept at the office!

*1 Number of customers using Wi-Fi router rental service (as of August 2020, our research)*2 Number of companies using our Wi-Fi router rental service

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

Copyright(C) 2021 VISION INC. All Rights Reserved.

18Efforts to Generalize Online Learning“GIGA School Concept”
To realize an educational ICT environment that is individually optimized for eachchild and fosters creativity- One digital device per person as a standard in the Reiwa era Contribute to promote online learning raising the “GIGA School Concept” by increasing the choices
which local governments can choose Wi-Fi routers rental contract or Wi-Fi routers purchase anddata communication contracts.
Local governments purchase Wi-Fi routers and distribute them to homes that require a communication environment.

Our 4 strengths
utilizing unique cloud technology
Online classes

School Concept
Dedicated dial isavailable for local
governments
and educationalorganizations
Copyright(C) 2021 VISION INC. All Rights Reserved.

Low
installation
cost

Low cost
during nonuse period

Remotely
resolvecommunication
problems

No need toreplace SIM

Many other benefits…
19

Strengthen Domestic Wi-Fi Sales“GLOBAL WiFi” Business
Capture usage needs by leveraging the price, rich lineup, product inventory,
various communication plans that meet customers’ needs, remote support in theevent of disasters, marketing power and brand strength (GLOBAL WiFi), andcustomer base.
Strengthen sales expansion of a mobile Wi-Fi for teleworking.
Strengthen sales expansion of a mobile Wi-Fi for
educational institutions and local governments.
Available
Zero
Corporate
for overBecause it is convenient to be rented on a daily
handling
plan
100
fee
available
terminals
basis (based on the number of days used),
Available in Japan / For online classes
receive a favorable reputation as an alternative
Wi-Fi rental for teleworking
when moving, hospitalization, etc.
* No annual contract required, available only whenneeded and for the required period.

Click here for details

For school and educators

Wi-Fi rental for online classes

Recommended forteleworking!

・ Provides quotes the sameday, and delivers the next day
at the earliest
・Laptop, tablet available
・Easy to set up

Can be used immediately
without any installation work!

Introduction results: Used by many schools for online class.

Start teleworking immediately
without an internet environment!

Tokyo University, Waseda University, Seijo University, Hokkaido Universityof Education, Aichi Shukutoku University, Shizuoka Sangyo University,
Shizuoka Prefectural University, Osaka University of Economics, Hyogo
Prefectural University, Okayama Prefectural University, Nagoya Medical and
Health Sports College, Tokyo Design Technology Center

Copyright(C) 2021 VISION INC. All Rights Reserved.

20

“Tsuyaku-fukikae.com”- New Service Making the Most of Our Customer Base The service of online/offline business negotiations and conference interpretation, video
translation/dubbing.
Simultaneous/consecutive interpretation of business negotiations, conferences, and IR meetings with overseas
companies and investors at web meetings and conference calls (Japanese ⇄ foreign language).
Simultaneous/consecutive interpretation in online classes and seminars (Japanese ⇄ foreign language).
Create a dubbed video for overseas investors (Japanese ⇄ foreign language).
Create dubbed videos in foreign languages such as English and Chinese (foreign language ⇄ Japanese).
Dubbed videos in any foreign language into Japanese such as AI, 5G, autonomous driving, IoT, finance (for in-house training videos, etc.).

Translate proposal materials, contracts, manuals, WEB pages, IR materials, etc. (Japanese ⇄ foreign language).

“Overcoming the language barrier, make your business more global.”
Provide interpretation, translation, and dubbing services that can be usedin various business situations at reasonable prices.

For usePrice

Usage example

Apply

Overcoming the language barrier,make your business more global.

Copyright(C) 2021 VISION INC. All Rights Reserved.

21

Vision WiMAX- New Service Making the Most of Our Customer Base New service that responds to customer feedback.
In our survey, many customers use a Wi-Fi router for“trial before purchasing”.
A Wi-Fi router sales service for customers who are consideringpurchasing.

Reasons to choose Vision WiMAX

Customers can use it as a trial with rental (with special discount).
After checking the communication environment, customers canpurchase a Wi-Fi router that meets customers’ needs.
Trade in the device when canceling (Vision WiMAX original
service).

No initial cost

Arrive quickly.

365 days available

Trial rental

Trade-inwhen cancel

15mn rental
records

Vision WiMAX is a service that meets all of the above.
For corporate
customers

Vision Inc.
TSE 1stSection:9416
Price
Price

DeviceDeviceHowtotouseuse
HowCampaign
Campaign

Areas
Areas

Apply
Usage example

Q&A

Safe forbeginners

Internet environment can besolved with a Vision WiMAX!
At home or outside

For teleworking, online classes

Copyright(C) 2021 VISION INC. All Rights Reserved.

22

Changes in Monthly Cost and Segment Profit“GLOBAL WiFi” Business
Return to the black in a single month by continuing low-cost operation and acquiring
various needs.
Actively acquire various needs for using mobile Wi-Fi router (“GLOBAL WiFi for Biz” etc.).
Overseas communication costs are significantly reduced due to a pay-as-you-go communication purchase contract(a contract without a monthly basic charge) that charges based on the use of communication.
Depreciation costs have significantly decreased since FY2020/3Q due to the impairment loss (approx. JPY1.2bn) ofrelated assets such as rental assets in FY2020/2Q (Wi-Fi router devices).
Cost structure that changes depending on the number of rentals: communication costs, shipping and delivery costs, credit
card payment fees, etc.

(JPYmn)COST(JPYmn)SEGMENT PROFIT OR LOSS (-)

1,156
1,093
225
178

777
542

584

545
418 428455 443 443 461

10-19Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

-90

-107

-0

-17 -3-2-88

SG&A expenses 591 572 439 328 340 314 273 279 276 269 267 247
Cost of sales
Overseas
telecom cost

292 313 209 203 226 223 143 146 168 143 149 193
210 271 129 10

17

7

2

3

11

31

27

-182

21
Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

(Note) The figures are different from those of the segment results because they are monthly changes in profit and loss which do not include closing.
23
Copyright(C) 2021 VISION INC. All Rights Reserved.

Utilize “CLOUD Wi-Fi Router”
A Wi-Fi router with next-generation communication technology that manages SIM
on the cloudNo need to insert/change SIM physically.
Communication lines of the world are available with only one device.
The device settings can be adjusted remotely in the case of communication failure.
The plan (data capacity) can be changed during the rental term.

Make the most of the characteristics of the CLOUD Wi-Fi router.
Convert the Cloud Wi-Fi router used for overseas communication service to the domestic Wi-Fi router.
Since a physical SIM card is not inserted in the router, it can be assigned to other routers depending on
the communication status.
* It can be operated even in the case that the number of rentals is more than the number of SIMs
(efficient operation of communication costs).

You can use it
immediately
after turningon the power!

Store SIMs allover the worldon the cloud

Copyright(C) 2021 VISION INC. All Rights Reserved.

24

Pick-up at Convenience Store- Competitive Advantage When Recovering Travel Based on user’s convenience, add a choice you can pick-up a Wi-Fi router at Seven-Eleventhroughout Japan (excluding Okinawa) near your workplace or home.
You can pick it up at midnight if the store is open.
Provide a choice to avoid crowded places where people gather, such as airport counters.

You can pick-up
at Seven-Eleven nearyou.

At Seven-Elevennear you

You can pick it up at
Seven-Eleven near you.

At anytime

Ready-to-go
in advanceYou can pick it up even at
midnight if the store is open.

You don’t need to wait at the
airport counter.

Copyright(C) 2021 VISION INC. All Rights Reserved.

25

Expand Unmanned Shops- Competitive Advantage When Recovering Travel -Expand unmanned shops with vending machines.
Where are they installed? (As of Dec. 2020)
Kita-kyushu airport, Miyako Shimojishima Airport* Plan to add more in the future.

What units are installed?
Smart Pickup + Return BOX(Available for pick-up and return)

FeaturesNon-face-to-face receipt even during busy seasons
without waiting at the airport counter (for repeaters
who do not need explanation, effective against
COVID-19).
Respond to customers early in the morning and late
at night, when there are needs, but it is difficult tosecure human resources.
Also install vending machines for pre-paid SIM fordomestic use mainly for foreign travelers visiting
Japan and those who are temporarily back to Japan.
Available to add touch points with space-saving andlow-cost (improve convenience and increase profits).
Copyright(C) 2021 VISION INC. All Rights Reserved.

26

“GLOBAL WiFi” Business
Items

Profit Structure

Summary
Overseas
Regular rental：
Rental price per day × number of days used
Average: JPY1,000/day, Average number of days used: 7 days

Sales

Options such as insurance, mobile battery, etc.

GLOBAL WiFi for Biz：
Monthly charge (JPY1,970) + data communication fee (plan) × number of days used

Domestic
Rental price per month (available for rental from 1 day)Average: Approx. JPY5,000/month, Average days used: 1.5 months (45 days)

Cost of sales

Data communication (telecom carriers in the world)
Terminal price (mobile Wi-Fi routers)
Recorded as rental asset (recorded by 2-year depreciation)

Outsourcing (commission paid to sales agents), etc.

SG&A expenses

Personnel, advertising, shipping delivery, business consignment,
credit card payment, etc.
Operation and rent of shipping centers, airport counters, customer
centers, etc.
Other SG&A expenses, etc.
Copyright(C) 2021 VISION INC. All Rights Reserved.

27

Gross Profit Composition
Information and Communications Service Business
Sales of mobile communication equipment are strong (the number of companies introducing
teleworking increases).
Orders received for “Vision Crafts!”, a monthly website production service, are steadily growing.
The composition ratio of the office automation equipment sales business under lease contracts
declines, partly due to the decline in domestic leasing transaction volume.
* Refer to the materials released by the Japan Leasing Association.

FY2019 Cumulative values

FY2020 Cumulative values
0.7%

0.0%
2.4%
10.5%

2.2%
21.9%

9.3%

JPY
4,534mn

10.6%

14.5%

30.5%
10.9%

Fixed-line communication

Internet media

11.7%

Mobile communication

Eco solution

JPY
4,703mn

27.6%

Broadband

Construction related

15.3%

20.8%

11.2%

Office automation equipment

Other(Note) The figures are different from those of the segment results because they are monthly changes in profit and loss which do not include closing.
Copyright(C) 2021 VISION INC. All Rights Reserved.
28

Stock Earnings and In-house Services (Monthly)
Gross Profit Change Information and Communications Service Business
Strengthen stock earnings and in-house services (monthly), which will provide astable earnings base over the long term.
Strengthen sales of in-house services (monthly) since FY2019.
(JPYmn)Strengthen sales and expand services to reach the profit of JPY1bn.
830

730
530

In-house services(monthly)
Stock earnings

550

590

620

FY2015FY2016FY2017FY2018FY2019FY2020

0.5
50

0.8
80

1.3
130

1.9
190

3.3
330

4.7
470

4.7
470

4.6
460

4.6
460

4.2
420

4.0
400

3.6
360

Stock earnings: Revenue from continuation fee associated with subscription agency contract in communication service business andmanufacturer maintenance fee in OA equipment sales business
Copyright(C) 2021 VISION INC. All Rights Reserved.

29

Sales of In-house Services (Monthly) are Strong- Provide Products/Services Meeting the Customers’ Needs and the Times -Sales of monthly website production service “Vision Crafts!” are strong.
Utilizing our experience of more than 100 website production per month, provide website production
service enabling customers create easily their websites and “visually convey!” with it at a low price(from JPY3,980/month).
Popular with customers in various industries, including restaurants and retail shops, thanks to the low
initial cost.
* Also popular with customers who have difficulty passing credit screening, because they have just established and opened.

Simple!
Website update

Rich designmaterials

Reliable staff
before opening

How to use!
Support desk

Copyright(C) 2021 VISION INC. All Rights Reserved.

All together from3,980 yen/month30

Provide Products and Services Responding toChanges in Work Styles
In-house developed or used services are
expanded to users.
Provide the required functionality in thecloud as needed.
Reduce users’ costs (installation and running).
Expand the VWS (Vision Web Service) series.

VWS series(Attendance, workflow)

SNS for business（JANDI)

精算
申請

Copyright(C) 2021 VISION INC. All Rights Reserved.

31

Information and Communications Service BusinessBusiness Model“Vision Hybrid Synergy model”

Sales improvement

Existing users
needs
Up selling Cost reduction
Cross sellingneeds
Efficiency(Pull)The business model built for 25 years since its
foundation has been developed to allbusinesses such as “GLOBAL WiFi” business.

Corporate sales strength (structure, know-how,
CLT
Cross
selling
Improve customer
various sales channels)
Up selling

Apparent needs that
customers are aware ofUser relationship

Develop newVideo.com websites,customers Landing
pages (LP)marketing(Pull)
SNS&emailGlobalmarketing

DX promotion

DX promotion
New users

Subscription
promotion

Potential needs that
customers areunaware of

Existing users

Management
Strategy Promote productivity

DX promotion

improvement

Analyze customer
Improve gross profit,
attributes
Strategy

Big data
Targetingmarketing

In-house SaaS
promotion

DX promotion

Membershipstrategyplanninggross profit margin
and absolute amount

Strategic investment Improve(M&A, alliance)
procurement

Sales

Sales improvement
needs

Cost reductionneeds
Efficiency
improvement
needs
Communication
activation needs

Multi-job
promotion

Assetsmarketingactivation needs

satisfaction

Enhanceescalation

Marketing

improvement
Communication needs

Improveaverage value(escalation, visits,
acquisitions)

DX promotion
Enhance sales,
Enhancetelemarketing
partner, FC
Sales contact
centerDevelop new customers(Push)

Copyright(C) 2021 VISION INC. All Rights Reserved.

Existing users
Up selling
Cross selling(Push)

Definite targeting, timing
sales, Life Time Value
32

Customer Service
Create values with advanced operations
Customer Loyalty Team (CLT)
From delivery procedure to follow-up
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) 2021 VISION INC. All Rights Reserved.

Follow-up
SupportHearing

Provideinformation
33

“High Efficiency” Marketing“High efficiency” marketing with combined three factors:
web marketing × sales rep × CLT

Newcustomers

Acquire highly
reliable actual
demandExisting
customers

Hearcustomers’
problems andneeds

Proposalwith highprecision

Cooperation

Cooperation

Web marketing
team

Customer Loyalty
Team (CLT)

Sales rep
Copyright(C) 2021 VISION INC. All Rights Reserved.

34

Escalation(Cooperation among Divisions, Customer Referral)

Organization culture that creates continuous evolution○たゆまぬ進化を生みだす組織カルチャーHigh productivity created by escalation system (cooperation among
事業部間連携（エスカレーション）が生みだす高い生産性
divisionsand customer referral)
Customers

Improve productivity through flat and open culture,and the “escalation system” promoting cooperation among divisions

Cooperation

Cooperation

Cooperation

Cooperation
Copyright(C) 2021 VISION INC. All Rights Reserved.

35

Subscription-based Business Model
Subscription-based Business Model
Offer optimum solutions according to the growth stage, continuing close to thegrowth of customer companies.
Structure that accumulates profits by our original know-how CRM (customer
relations/continuous dealings).
Offer products and services

Optimum
solutions

Offer OA equipment
and website support
etc. suitable for thebusiness environment
Consulting services
suitable for thebusiness growth stage

Optimum
solutionssuitable for the businessenvironment
Offer in-house products
and services
Consulting services suitable
for the business growth
stage

Further growth
stage

Early growthstage
Startup
stage

Increase members
coming from expansion(Add communicationlines, and numbersof units, etc.)

Optimum
solutions

Increase members
coming from expansion(Add communicationlines, and numbersof units, etc.)

Current main targets

Future targets“Reserves for Growth”“Enterprises in growth stages”

Copyright(C) 2021 VISION INC. All Rights Reserved.

36

Maximize Productivity per Person
Maximize productivity per person by creating a success spiral of corporate
culture (escalation culture, cross-function organizational structure), businessmodel, and sales structure.

Success spiral components
Improveproductivity
per person

Competitive
advantage

Incentives, purchasing conditions

Improveeconomic
conditions

Successful
experience(contract)

Accumulate experience and know-how
Maximize
number ofnegotiation

Inflow to our website
Telemarketing
Escalation

Low price (low gross profit), product lineup
Increasesales
Accumulate experience and know-how
Manynegotiation
experiences

Corporate
cultureCopyright(C) 2021 VISION INC. All Rights Reserved.

37

Sustainable Growthand Corporate Value
Improvement- ESG Activities -Copyright(C) 2021 VISION INC. All Rights Reserved.

38

Sustainable Growth and Corporate Value
Improvement - ESG Activities
Environment

Corporate Governance

Measures against global warming
Promote ECO and recycling
Activities to support disaster areas

Strengthen corporate governance
Promote risk management
Strengthen compliance

Environment

Governance

Related main SDG items

SocialRecruitment/Employment

Work-style Reform

Various recruitment channels
Recruitment advantages

Personnel system suitable for thetimes
Unique benefits
Copyright(C) 2021 VISION INC. All Rights Reserved.

39

Activities for Environment
Acquire a “Green Site License” to offset the carbon
footprint of our website.
* Provide an environmental support with “Green
Electricity” for our website’s CO2 reduction.
Support and cooperate with the organizations which
provide information, support activities in disasterareas, and provide assistance to various activities to“realize a society where people can support each other at
the times of earthquake.”
Operate the business with the minimum required
tangible fixed assets. Tangible fixed assets accountfor 3% of total assets, at the end of FY2020.
* Adapt to various changes in the environment.
Provide rental service of LED lights at a moderate price.
Paperless efforts
Provide iPad to sales staff, etc.
Utilize video (web) conference (reduce unnecessary
traveling).
Utilize electronic forms and internal SNS actively.
Select recyclers.
Provide iPad

Video (web) conferenceElectronic forms (workflow)
Utilize internal SNS

Select recyclers

Copyright(C) 2021 VISION INC. All Rights Reserved.

40

Social Activities
Various recruitment channels
Fair recruiting, referral recruiting, and active recruiting of women(Female employee ratio: 33%).
Hire multinational people (Foreign nationals: 16.5％ (full-time)).
Hire disabled people (“Meiro-juku,” local group to support disabled people;
continuously awarded since 2015).

How to develop human resources(training system/evaluation system)
Training for new graduates
Business etiquette, PC, knowledge, external, sales, follow-up, etc.

OJT after assignment

Product knowledge training, sales appointment calls, business accompaniment, role-playing.

Sales experience
WEB marketing, telemarketing, escalation.

A lot of business deals generated from sales appointment calls (Experience ⇒ Growth).

Four opportunities a year for salary increases and promotions based on
evaluations every three months.
33% of the annual salary is variable salary (incentives such as commission,achievement, and profit dividend).
* Average of all sales reps in 2019

Introduced personnel system suitable to the times and unique benefits plan
Shorter working hours, shift and flextime systems.
Half-day leave/hour leave (paid leave) applied, spouse birthday leave (special leave).
Drink allowance (for summer season), influenza vaccination subsidy, teleworking allowance.
Additional work-related accident insurance (compensation for the excess), insurance to coverillness/injury other than working hours (take out corresponding insurance).
Copyright(C) 2021 VISION INC. All Rights Reserved.

41

Social Activities

Internal Communication

Real-time internal communication
Share information and communicate each other in real time,using SNS (JANDI).
Realize immediate communication and decision-making by utilizing
communities with limited participants (board member community,
approval community, etc.).
* Utilize JANDI internally at first and provide the improved service to our customers.

Share management and business policies, using
videos, etc.
Create videos about business policies and post on the intranet.
Communicate throughout the group.
* Create dubbed videos for employees of overseas subsidiaries.

In-house booklet “Vision Tsushin”
Publish the in-house booklet “Vision Tsushin” quarterly (booklet, posted on the intranet).
Messages from executives.
Share new efforts, etc.
Comments from the top sales person.
Introduce our Divisions.
Share various information on the labor, and compliance,etc.
Published since 2012.
Copyright(C) 2021 VISION INC. All Rights Reserved.

42

Social Activities“Vision Kids Nursery” run as company-led childcare businessFor childbirth and childcare, which are both big events in employees’ lives, implement measures
to make rules of employment more flexible, expand leave systems, and promote taking leave(current status)⇒ Provide a more comfortable work environment (a sense of security that children are nearby)
than ever before.
* Establish a childcare facility within a site of CLT, where female employees account for morethan 90%.
It is easy to return to work, so hire employees who are motivated to work in a parenting
generation.
⇒ One of sources of sustainable growth

Copyright(C) 2021 VISION INC. All Rights Reserved.

43

Social Activities
Support Japan Heart’s activities -“to deliver healthcare to medically-isolated areas.”
Japan Heart is an International medical NGO originated in Japan, which was established by thefounder Hideto Yoshioka (pediatrician) in order to improve the quality of medical support activities,
based on his many years of medical experience in foreign countries.
Many medical workers and volunteers from Japan have supported the organization, more than 4,500 volunteers
have participated in the activities, and more than 200,000 treatments havebeen conducted in developing countries.

Japan Heart’s activities
There are four areas where medical care is difficult to deliver.
One is developing countries suffering from poverty and shortage of doctors.
One is remote areas and isolated islands in Japan.
One is inside children’s heart who fight diseases.
One is the large-scale disaster-stricken areas.
Japan Heart is working to deliver medical care to thesefour areas.

Our support for Japan Heart
Provide free Global WiFi rentals to Japan Heart volunteers
who are active around the world and the secretariat.
Donate a portion of company sales to the secretariat.
Through this support, we hope to be able to assist indelivering medical care to as many children as possible.

Copyright(C) 2021 VISION INC. All Rights Reserved.

44Governance System

Independent officer system
Total number of Directors: 6(including independent outside directors: 3 / Male: 5, Female: 1)⇒ Business owners with rich experiences in web marketing,inbound business, and the financial industry/global business.
Total number of Audit & Supervisory Board Members: 4(Independent outside auditors: 4)⇒ CPAs, prosecutors/lawyers, and business owners.

Strengthen information security
ISMS (Information Security Management System) certification
Certified under the international standard “ISO/IES 27001.”
Established and has operated the Information
Security Committee.

Compliance, risk management, and internal control activities
Conduct training sessions regularly.
Copyright(C) 2021 VISION INC. All Rights Reserved.

45

Treasury Share Acquisition(Resolved by the Board of Directors’ Meeting on February 21, 2020)* Excerpt from “Notice Regarding Decision to Acquire Treasury Shares” on Feb. 21, 2020, and “Notice regarding
the status and completion of treasury share acquisition”

PurposeTaking into cash on hand, share price, and other factors comprehensively, conductacquisition of treasury shares flexibly to improve capital efficiency.
Items

Details

Class of shares acquired

Common stock of the Company

Total number of sharesacquired909,000 shares
Percentage of issued shares (excluding treasury shares):1.89%

Total acquisition price ofJPY985,974,100
sharesAcquisition period

February 25, 2020 to February 28, 2020

Ownership status

Number of shares

Total number of issued shares

49,027,800 shares

Number of treasury shares held

1,948,044 shares

Copyright(C) 2021 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

Items

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, and employees of thesubsidiaries: 163 people, 13,560 units

Conditions forexercising 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 these rights that have been 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 ⇒ Achieved• Exercisable ratio：30％

Copyright(C) 2021 VISION INC. All Rights Reserved.

47

25years 400,000companies*1 15mn people*2*1 Number of companies using since 2004 (as of May 31, 2020)*2 Number of customers using Wi-Fi router rental service (as of August 2020)

To solve the problems for customers who challenge
the “now” with our gratitude so far

To Contribute to the Global Information andCommunications Revolution
Copyright(C) 2021 VISION INC. All Rights Reserved.

48

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 be obligatedto update and revise the “forward-looking statements” included in this announcement.
Vision Inc.
Contact： Investor Relations Dept.
ir@vision-net.co.jp

Copyright(C) 2021 VISION INC. All Rights Reserved.

49