2nd Quarter FY2020
Financial Results
2020.2
August 17, 2020
株式会社ビジョン
Vision Inc.
証券コード：9416(1st Section of the Tokyo Stock Exchange, code： 9416)

Contents• 2Q FY2020 Financial Results (Consolidated)• Performance Change– Total– “GLOBAL WiFi” Business– Information and Communications Service Business• Topics

2Q FY2020 Financial Results (Consolidated)
Sales: -25.6％ YoY, and Operating loss: -JPY15mn
Item

FY2019/2Q
ResultAmount

ChangeComposition
ratio(JPYmn, %)FY2020/2Q
ResultAmountComposition
ratio

Sales

12,937100.0-3,307

9,630

100.0

Gross profit

7,496

57.9-2,673

4,822

50.1

EBITDA

2,091

16.2

-1,801290

3.0

Operating profit or loss (-)

1,690

13.1

-1,705-15-0.2

Recurring profit

1,673

12.9

-1,60666

0.7

Profit or loss (-) attributableto owners of parent

1,075

8.3

-2,427-1,352-14.0

Performance Change (Total)
OPERATING PROFIT OR LOSS (-) (JPYmn)

SALES
1Q

2Q

3Q

4Q

27,318

1Q

2Q

3Q

4Q

3,325

+27.0%

21,503+33.8% 354

6,770

2,484+22.5%+38.9% 348

17,554 5,686+18.3%

1,788

7,610

14,843 4,377+38.6% 249+18.9%

12,485 3,807
3,277
3,429
2,940
2,836

4,827
4,083

3,465
3,487

1,290

5,961

4,024
4,326

6,467

3,641

4,933
4,922

-25.6%

6,470

5,989

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020+60.3% 214

804128304
169
202517245313688

900710
499

336
513

1,280

736980488-503

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020(Note) Regarding the quarterly results in FY2015, the year-on-year ratio is for reference, because we do not prepare for the quarterly financial statements.

Performance Change (“GLOBAL WiFi” Business)
Sales were domestic Wi-Fi rental only during the 2Q consolidated fiscal period (April toJune).
Strengthen domestic Wi-Fi sales:
In response to the growing needs for teleworking and online classes, increase orders due to our high-quality, abundantlineup, and product inventory (companies, universities, government offices, etc.).

Rapid overall cost reductions:
Personnel costs (including job rotation), rent, sales promotion expenses, advertising expenses, employment adjustment(leave), suspension of some shops, etc.

SALES
1Q
3Q2Q4QSEGMENT PROFIT OR LOSS (-)

17,732

1Q
3Q+31.3%

13,505

4,462

2Q
4Q

3,301
+36.8% 430

2,413+30.0%

3,589
10,392+31.8%+30.6% 7,882 2,636

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

2,329

1,697
1,781

2,226
2,505

+51.5% 495

1,593

5,084

+39.7%

1,140

3,929

3,022
2,898
3,089(JPYmn)

4,109 -43.4%

1,286
4,075

3,347

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020+92.2% 245593
114
25660162494146
252224631271
466769448
701

1,274724871326-347

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

Performance Change(Information and Communications Service Business)
Sales of cost reduction products and mobile communication equipment (for teleworking,etc.) were strong.
Develop sales activities that accurately capture the companies’ needs to reduce costs and support teleworking
due to the spread of COVID-19.
Strengthen sales of VWS (Vision Web Service), online products and services.
* Efforts to increase stock earnings by deploying SaaS model services that reduce initial installation costs.

1Q
3Q

2Q
4Q

1Q
3Q

SALES
+9.4%8,955+15.2%

1,673
1,601

1,730
1,749

1,629

1,764

1,536

1,703

1,725
1,786

1,782
1,810

2,330
1,977
2,009
1,818

2,207

+14.4%1,172+13.4%1,024

903
+0.2%
2,004

214

221
269

2,302

SEGMENT PROFIT+3.9%

7,775 2,115+7.9%
7,104
6,948
6,440
1,970
+2.2%

2Q
4Q

2,515

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

198285219244
296
264

287

316282(JPYmn)+11.9%1,363

1,218
212

188342371

-1.8%

350

299482517

337296FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

Consolidated Balance Sheet
Equity ratio: 78.4％ (Approx. +2.1% points from the previous quarter)
Cash and deposits decreased:
A significant decrease in sales in “GLOBAL WiFi” Business, securing inventory of the mobile communications
devices, purchasing hygiene products for sale, and other factors.
(JPYmn, %)Current assets
Cash and deposits
Non-current assets

Total assets
Current liabilities
Non-current liabilities
Total liabilities
Total net assets
Total liabilities and net assets

Equity ratio

As ofJun. 30, 2020

As ofMar. 31, 2020AmountAmount

8,580
5,738
2,313
10,894
2,304
24
2,329
8,565
10,894
78.4%

9,965
6,864
3,173
13,138
3,058
36
3,094
10,044
13,13876.3%

ChangeAmount-1,384-1,125-859-2,243-753-11-765
1,478-2,243+2.1%

Percentage-13.9%-16.4%-27.1%-17.1%-24.7%-31.5%-24.7%-14.7%-17.1%－Revise Consolidated Financial Forecast
Revise Financial Forecast
Calculate the financial forecast, assuming that the sharp decrease in overseas travelers(outbound, inbound) will continue even after FY2020, and that no social restrictions
will be enforced in Japan such as emergency declarations.

Details

OperatingprofitSales

Net income
Recurring attributable Net income
to owners
per share
profitof parent

JPYmn

JPYmn

JPYmn

JPYmn

JPY

Previous forecast (A)Undecided

Undecided

Undecided

Undecided

Undecided

Revised forecast (B)16,700-320-213-1,601-34.03

Change (B－A)－－－－

Change (％)－－－－

27,318

3,325

3,358

2,226

(Reference) Previous
results (FY2019)

year

46.05

Policy on Growth Strategy (for Entire Group)
Current
situation“GLOBAL WiFi” Business:
The monthly loss has improved to less than -JPY100mn.
Information and Communications Service Business:
The same level as last year although it has been affected by COVID-19.
Turn “GLOBAL WiFi” Business into a profitable early on a monthly basis.
Actively sell domestic Wi-Fi, and develop Information and Communications Service Business and any newbusiness, other than resources ensuring quality and operations that maintain competitive advantages after
recovery of travel.

PolicyAccelerate the growth of Information and Communications Service Business.
Accelerate the growth of the business, which is one of our growth businesses and generates stable returns.
Develop businesses and services that leverage our strength of capturing newly established companies.

Actively engage in new businesses, new products and services.
Make the most of corporate culture, organizational structure, business partners, and customer assets.
Provide products and services that meet the high needs of existing customers in “GLOBAL WiFi” Business andInformation and Communications Service Business through cross selling.

By the end of 2Q, measures to improve loss (defense) had been roughly
completed.
After 3Q, make the most of the experience and know-how cultivated as acompilation of 25 anniversary of its foundation, while making various
investments to earn profits (offense).

Current Situation and Future Policy(“GLOBAL WiFi” Business)
Currentsituation

PolicyThe number of overseas travelers is almost zero.
Number of overseas travelers from April to June*: Both outbound and inbound decreased by
99% YoY. *Refer to the materials released by the Japan National Tourism Organization (JNTO).
Turn profitable by operating the business at the lowest cost, assuming that overseas travel will notrecover even within 2020 or 2021.
After the recovery of overseas travel, aim to maximize profit margin and increase market share byorganizing to operate with the minimum personnel, improving operational efficiency, andimproving convenience.

Strengthen Domestic Wi-Fi Sales

Personnel

Strengthen sales expansion of a mobile Wi-Fi
for teleworking.
Strengthen sales expansion of a mobile Wi-Fi
for educational institutions and localgovernments.
Actively expand domestic plan options of“Global WiFi for Biz” for corporate customers.

Focus on expanding domestic Wi-Fi sales.
Employees other than those who engage inthe development of new technology will betransferred to Information andCommunications Service Business etc.
Use employment adjustment subsidy (forbusinesses affected by the COVID-19pandemic), and employment adjustment(leave) for some personnel.

Airport counter

Cost reduction

Close some counters and shorten businesshours.
Advance Smart Strategy (Expand unmannedshops, Smart Pickup + SIM vending machine,etc.).
Add new delivery method (convenience store).
Significantly streamline the system (reducefixed cost).

Suspend and cancel SIMs with fixed costs.
No fixed cost for a pay-as-you-go SIM (approx.
80% of all SIMs).
Reduce advertising expenses.
Reduce travel expenses and travel time byswitching to business negotiation with Zoom.

Shipping center
Utilize as a shipping center for otherbusinesses such as Information andCommunications Service Business(reduce outsourcing costs for the entiregroup).

New services
Plan and develop new services forcorporate and individual customers
traveling overseas.
Business tie-ups with domestic andoverseas business partners other than
“GLOBAL WiFi” Business.

Strengthen Domestic Wi-Fi Sales
Set up special pages on each sales website to maximize domestic Wi-Fi rental demand.
Strengthen sales expansion of a mobile Wi-Fi for teleworking.
Strengthen sales expansion of a mobile Wi-Fi for educational
institutions and local governments.
Make the most of the know-how and resources provided by our company for theinternet communication environment, which has been an issue for inboundmeasures, through the partnership with local governments.
*Osaka introduced 3,300 units, and we are also currently in negotiation with the Boardof Education etc. in other regions.

“GLOBAL WiFi for Biz” for corporate customers
Actively expand sales of domestic plan options.

< Wi-Fi rental for corporate teleworking >Over
100units
available

ZeroofficefeeCorporateplanavailable

Available in Japan / For online classes

Wi-Fi rental for teleworking
For details< Wi-Fi rental for educational institutions & local governments >Online class

School Concept

For school and educators

Wi-Fi rental for online classes
・Provides quotes the same day, anddelivers the next day at the earlies
・Laptop, tablet available
・Easy to set up
Introduction record: Used by many schools for online classes.

Dedicated dial for
local governments
and educationalorganizations

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 Medicaland Health Sports College, Tokyo Design Technology CenterChanges in Monthly Cost and Segment Profit(“GLOBAL WiFi” Business)
Make costs variable (efforts from before) and further reduce costs.
Reduce costs by pay-as-you-go purchase contract with no communication costs unlesscommunication occurs.
For most of the SIMs for overseas use with some fixed charge, no communication cost is incurred because of suspension, andfor those with fixed charge, communication cost has been reduced to around 4 million yen per month.
Cost structure that changes depending on the number of rentals: communication costs, shipping delivery costs, credit card
payment fees, etc.
(JPYmn)(JPYmn)COST
SEGMENT PROFIT OR LOSS (-)

1,093

1,156

225
178

777
542 584

545

Jan.

Feb.

Mar.

Apr.

May

Jun.

SG&A expenses

591

572

439

328

340

314

Cost of sales

292

313

209

203

226

223

210

271

129

10177

Overseas
telecom cost

-90

-107

-88-182
Jan.

Feb.

Mar.

Apr.

MayJun.

Current Situation and Future Policy(Information and Communications Service Business)
Currentsituation

PolicyA sudden change in work style associated with the spread of COVID-19.
Respond to teleworking (improve infrastructure environment), improve operational efficiency, reduce costs, etc.
In this consolidated fiscal period, there was an impact (delay) due to the suspension of leasing examinations
coming from the spread of COVID-19, however the situation became normal after the state of emergency waslifted.

Provide products and services responding to changes in work styles (Plan and sellteleworking support products).
Establish a sales style that is not tied to working place. Maximize productivity per person.
Increase stock revenue, which underpins stable growth.

Plan and sell teleworking support
products

Sales style that is not tied to working
place

Vision Web Service: VWS series
SNS for business: JANDI
Web meeting and online business negotiation
system: meet inTelephone agency service: te-le-rePlan and sell in-house operated and renovatedservices at any time.

Promote teleworking actively.
Strengthen online sales.
Strengthen inside sales.
Minimize visiting sales.
Expand sales area.
Reduce operating costs (travel expenses,overtime pay, etc.)

Maximize number of negotiations (no traveltime).
Acquire negotiation appointments using Web
marketing know-how with over 15 years
experience.
Improve productivity through uniform training.
Thoroughly analyze customer attributes.
Strengthen retention CRM.

Expand sales of cost reduction
products

Hybrid Synergy model

Increase stock revenue

Web marketing + CLT (customer center) + sales
Cross-function organizational structure.
Make the most of our customers’ assets.
Escalation (cooperation between divisions,customer introduction)

In addition to existing stock revenue, expand
profits by developing in-house services including
online services, corporate mobile maintenanceservice “Garasapo,” website maintenanceservice, strengthen sales such as LED sales, etc.
Increase customers by business alliance.

Provide various telecommunication discountservices.
Website low price production and maintenanceservice.
Provide products and services with less initialinstallation costs.

Maximize productivity per person

Provide Products and Services Responding to Changes inWork Styles
In-house developed or used services areexpanded 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

Provide a New Service that Meet Customers’ Needs
Start providing in earnest a new website production service, “Vision Crafts!”
Utilizing over 100 website production experiences per month,
we provide production service of website that customers can easily
create and “visually convey!” at a low price (from JPY3,980/month).

Simple!
Website updateAbundant
design materials

Reliable staff
before opening

How to use!
Support desk

All from 3,980
yen/monthTo Contribute to the Global Information andCommunications Revolution