1st Quarter FY2021
Financial Results
May 13, 2021
Vision Inc.
TSE 1st Section： 9416

1Q FY2021 Financial Results (Consolidated)(JPYmn, %)Item

FY2020/1Q
Results
AmountChangeComposition
ratio

FY2021/1Q
Results
AmountComposition
ratio

Sales

5,989

100.0

-2,050

3,938

100.0

Gross profit

3,252

54.3

-1,076

2,176

55.3

Operating profit

488

8.1

-202

285

7.3

Recurring profit

496

8.3

-182

313

8.0

Profit attributableto owners of parent

116

1.9+115232

5.9

Performance Change “GLOBAL WiFi” Business
Steadily capture various domestic usage needs because the state of emergency is newly declared.
Capture the demand for teleworking (the number of extension of the rental period is increasing), online training for new employees, etc.
Sales of standby type “GLOBAL WiFi for Biz” for corporate customers are favorable (the number of contracts and communication usageincreased).
Needs for teleworking, online classes, and local governments (the Board of Education, etc.) for the GIGA School Concept are actively
captured. Making the most of our performance and know-how of the domestic Wi-Fi router rental business since 2010, acquire varioususage needs (moving, hospitalization, business trip, combined use with home internet, various events, etc.).

1Q
3QSALES
17,732

2Q
4Q+31.3%

13,505(JPYmn)
SEGMENT PROFIT OR LOSS (-)
1Q
3Q

2Q
4Q

4,462
+51.5%+30.0%

10,392 3,589 5,084+31.8%-59.0%
7,882 2,636 3,929
7,278

2,073

+36.8%

4,109 1,371
1,272
2,329
2,898
1,286
2,226
-54.7%
1,697
4,075
3,347
1,781 2,505 3,089
1,5153,022

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021+39.7%1,140245
494
146
252

1,593
224
680
295
490

3,301
430

2,413
224
631
271
466

1,274
724
871

-90
326-347-27-42117

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

Performance Change
Information and Communications Service Business
Utilizing the strength of having multiple businesses (products/services) and sales channels,
the business has been favorable by minimizing the impact of changes in external environment
involving the newly declared state of emergency.
Sales and profit are on the decrease due to changes in business structure and strengthened sales of in-house services (monthly fee).
Stock earnings and in-house services (monthly fee), as the revenue base (recurring revenues), are on the increase.
Performance are recovered with the personnel shift to the Mobile communication business, etc. due to a decrease in the unit price ofbusiness consignment fee (agency fee) because of the temporary rise in electricity retail prices.

1Q

2Q

3Q

4Q

+2.2%

SALES
+15.2%8,955+9.4% 7,775

6,948 7,104
1,730
1,749
1,764

1,725
1,786

1,782

2,115

SEGMENT PROFIT
3Q 4Q+11.5%1,520+11.9%1,363
+3.9%
335
1,218188+14.4%1,172
1Q-1.7%

8,806
2,139

1,024

1,970
1,977

2,009

2,3302Q

219

2,146244
2,207

2,004

-6.3%

2,515 2,357
1,703 1,810 1,818 2,302
FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

296
264

285287316282212342367350

299(JPYmn)

371-20.7%

337296482517410

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

2Q FY2021 Financial Forecast Revision(JPYmn, %)FY2021/2Q
Forecast
after revision

FY2021/2Q
Forecast
before revision

Sales

8,148

7,274+874+12.09,630Cost of sales

3,702

3,185+517+16.2

4,807

Gross profit

4,445

4,088+357+8.7

4,822

54.6

56.2

-1.6

－50.1

3,938

3,962-23-0.6

4,837

SG&A-to-sales ratio

48.3

54.5

-6.1

－50.2

Operating profit or loss (-)

507

126+380 +301.3-15

Operating profit margin

6.2

1.7+4.5－-0.2

Recurring profit

532

121+410 +336.2

66

Profit or loss (-) attributable toowners of parent

376

71+305 +429.0-1,352Items

Gross profit margin
SG&A expenses

ChangeRatio ofchange

FY2020/2QResultForecast for the Full Year (FY2021)
Revise the full-year financial forecast to undecided.
We will announce it as soon as rational calculation becomes possible after closely
examining the impact on the business environment and the status of our various
efforts, etc.
Factors affecting FY2021 results
COVID-19: Negative
Spread of COVID-19 (including variants).
Vaccination status and its effects.
Impact on corporate activities (the state of emergency is newly declared or extended).
The feasibility of FY2021 Forecast Assumption (announced on February 15); After October 2021, numberof travelers (inbound and outbound) is expected to recover by about 25% compared to that in 2019.

Efforts for sustainable growth: Negative (impact on FY2021 results)
Efforts to change our revenue model to achieve sustainable growth.
Strengthen stock earnings and in-house services (monthly).

Current situation: Positive
Revise 2Q FY2021 financial forecast (upward revision).
The business has been favorable by minimizing the impact of changes in external environment involving
the newly declared state of emergency.

Policy on Growth Strategy
Existing businessNew business / Service building

Increase productivity.
PolicyKey phrase

Sales channel
Businessstructure

Customer base

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

Develop a new business as a thirdpillar.
Three-pillar business structure that responds tochanges in the times.

 Provide products and services meeting the  Adapt to environment with COVID-19, soneeds of customers and the times.
called New Normal.
 Build and strengthen sales system (online).  Utilize sales channels and business Strengthen up-selling and cross-sellingstructure.
 Utilize the customer base.
(including online negotiations).
 Brush up the revenue structure.
 Service that responds to customer
 Strengthen and expand in-house services.
feedback.
 Regional revitalization.

CLTWEB
marketing

Shops

Airport counters
etc.

Startups, growing
corporate customers

Customer Loyalty
TeamSales
Shipping
centerCorporate customers
working with overseas
companies

Individual users by corporate customers

Online / Offline

Partner

Global affiliatedcompanies

including travel
agencies and OTA

Governments /Individual customers
local governments,
who like traveling*including inboundSchools, etc.

Active Sales Expansion of “GLOBAL WiFi for Biz”
- Competitive Advantage When Travel Market Recovered Sales of standby type “GLOBAL WiFi for Biz” for corporate customers are favorable.
The number of contracts and communication usage increases.
Demand for teleworking is on the increase because the state of emergency is newly declared.
Income from the basic monthly charge is on the increase (recurring revenue).
Domestic communication (for teleworking) increases, and overseas communication increases moderately (long-termuse by local expatriates, etc.). ⇒ Communication charge (revenue) increases.

Connect Internet anywhere in the world with one
digital device“Global WiFi for Biz”
No need toapplyreceive

returnIf you have one “GLOBAL WiFi for Biz” in your company, you can use it
immediately for teleworking and sudden overseas business trips, and no
application required. You will no longer use overseas roaming services
because a rented Wi-Fi router is not delivered in time!

Strengthening of Domestic Wi-Fi Sales“GLOBAL WiFi” Business
Capture usage needs by leveraging our marketing power, brand strength (GLOBAL WiFi), thepricing plans, various communication plans that meet customer needs, remote support in theevent of disasters, and customer base.
Usage needs for:Business (teleworking, online training and meetings), online classes, hospitalization, moving, combined use with home internet, etc.
Convenience that you can rent it in various places for the required period (on a daily basis) not bound by your contract period is popularwith the users in various scenes.

Teleworking

New employee
training

Online meeting

For school and educators

Wi-Fi rental for online classes
・ Provides quotes the same day, anddelivers the next day at the earliest
・Laptops and tablet devices available
・Easy to set up

Essential
item
duringhospitalization!

Wi-Fi rental is recommended
when moving!
You can use the internet
immediately and comfortably.

Let's have a pocket
Wi-Fi router.
“WiFi rental.com” isuseful for you at suchtimes!

“WiFi rental.com” isuseful for you at suchtimes!

Sales of In-house Services (Monthly Fee) are Strong- Provide Products/Services Meeting the Customers Needs and the Times Sales of in-house services (monthly fee) “VWS series” are strong.
In-house developed and used services are expanded to users (DX promotion).
Provide users who need our services with required features of our service in a cloudenvironment on a monthly payment basis.
CONCEPT
Providing a more comfortable working environment for all companies
For a successful “Cloud migration” with “VWS”
Streamline daily operations with cloud tools and support various working styles
such as teleworking.

Application

In-house
SNS

Transportation
expenses

Sales

WelfareApproval

Goodmorning

Callsystem

Schedule

Efficiency

WEB
meeting

Schedule

Efficiency

GPS

Engagement

Chat

AttendanceEnteringandleaving

SFA

Payroll
prepaymentEmployeelist
Evaluation

Humanresources

Hi, ...
Security

Sales of In-house Services (Monthly Fee) are Strong- Provide Products/Services Meeting the Customers Needs and the Times -Sales of monthly website production service (monthly fee) “Vision Crafts!” are strong.
Website production service provided at a low price (from JPY4,048/month).
Respond to the growing appeal needs for online products and services (websites, etc.), looking at the social
environment with COVID-19 as well as a post-COVID-19.
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.

CONCEPT“Strong in visual appeal!”
We support website production.
Customers are confident in their products andservices, but they don’t know how tocommunicate the appeal of these products andservices ...
They want to convey their thoughts more on
their website!
Making use of our experience of producing morethan 100 websites a month, we have developed
a website production service that “communicatevisually!” with simple operations.
This is “Vision Crafts!”.

Changes in Monthly Cost and Segment Profit“GLOBAL WiFi” BusinessProfits are gradually recovered by continuing low-cost operation and capturing various usage needs.
Acquires actively various needs for using mobile Wi-Fi router (“GLOBAL WiFi for Biz”, etc.).
Overseas communication costs are significantly reduced by introducing a pay-as-you-go communication purchase contract (a contract withouta monthly basic charge) that charges based on the use of communication.
While securing our system that can respond immediately when overseas travel recovers, build a business structure that will generate higher
profits and profit margins after overseas travel recovery than those before the spread of COVID-19 (FY2019) by reviewing various costs andexpenses, and improving operational efficiency.
(JPYmn)COST

SEGMENT PROFIT OR LOSS (-)

1,156

1,093

FY2020
FY2021

225
178

777
439

548

415

29 1267
10-19Jan. 2020 Jan. 2021 Feb. 2020Feb. 2021Mar. 2020Mar. 2021
SG&A expenses

591

244

572

243

439

264

Cost of sales

292

176

313

158

209

263

210

19271

13129

20Overseas
telecom cost(JPYmn)-90-107-0-17 -3-2-88-182
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.

Gross Profit Composition
Information and Communications Service Business
Gross profit remains firm by flexibly changing the business structure according to customers
needs and the external environment.
In the Eco solution business, recovers by shifting personnel to the Mobile communication business, etc. due to a decrease in the unit
price of business consignment fee (agency fee) because of the temporary rise in electricity retail prices.
In the Internet media business, orders received for “Vision Crafts!”, a website production service (monthly fee), are steadily growing.

1Q FY2020 Cumulative
3.5%
10.1%

11.3%

1Q FY2021 Cumulative
1.0%

0.5%

3.6%

14.4%

7.5%

14.0%

11.2%

JPY
1,297mn31.5%

JPY
1,264mn

18.0%

25.6%

27.2%

10.8%

9.8%

Fixed-line communication

Internet media

Mobile communication

Eco solution

Broadband

Construction related

Office automation equipment

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

730

530

550

590

620

230

In-house services(monthly fee)

Stock earnings

1Q FY2021

FY2015FY2016FY2017FY2018FY2019FY2020

500.5

800.8

130
1.3

190
1.9

330
3.3

470
4.7

140
1.4

470
4.7

460
4.64604.64204.2

4004.03603.6800.8

Cumulative

Stock earnings: Revenue from continuation fee associated with subscription agency contract in Information and Communications Service Business and manufacturer maintenance fee in OA
equipment sales business25years 400,000companies*1 15mn individual customers *2*1 Number of corporate customers since 2004 (as of May 31, 2020)*2 Number of individual customers who make use of Wi-Fi router rental service (as of August 2020)

Toward the problem solving for customers who arechallenging the issue of “Now” with all our gratitude so far

To Contribute to the Global Information and Communications Revolution