FY2020
Financial Results
February 15, 2021
Vision Inc.
TSE 1st Section： 9416

FY2020 Financial Results (Consolidated)(JPYmn, %)Item

FY2019Results
AmountChangeComposition
ratio

FY2020Results
AmountComposition
ratio

Sales

27,318100.0-10,663

16,654100.0

Gross profit

15,69057.4-6,896

8,793

52.8

EBITDA

4,304

15.8

-5,187-883-5.3

Operating profit

3,325

12.2

-3,221103

0.6

Recurring profit

3,358

12.3

-3,130227

1.4

Profit or loss (-) attributableto owners of parent

2,226

8.1

-3,410-1,183-7.1

Performance Change “GLOBAL WiFi” Business
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 of the domestic Wi-Fi routerrental business since 2010, acquire various usage needs (substitution when moving, hospitalization, businesstrip, combined use with home internet, various events, etc.).

SALES
1Q
3Q

2Q4Q(JPYmn)

4,462+30.0%

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

1,602
1,826
1,308
1,297

2,329
1,697
1,781

1Q
3Q

+31.3%

13,505

6,035 2,073

SEGMENT PROFIT OR LOSS (-)

17,732

2,226

2,505

5,084

+36.8% 430

2,413

2,898
4,075

+51.5% 495

1,593

(YoY)

7,278
4,109

3,089

3,301

-59.0%

3,929

3,022

2Q
4Q

1,371
1,272
1,286
3,347

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020+39.7%1,140+92.2% 245

593
114
25660
162494
146
252

224
631
271
466

769
448

701

1,274
724
871

-90

326-347-27-42
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.) 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.

1Q
3Q

2Q
4Q

+7.9%

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

1,536

SALES

-1.7%
(YoY)

+2.2%

+9.4%

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

1,703

1,725
1,786

1,782
1,810

+15.2%8,955

7,775 2,115

1,977

2,009
1,818

2,207(JPYmn)

SEGMENT PROFIT +11.5%(YoY)

2,139
2,146

2,004

+3.9%

+13.4%

903
214221269

2,302

2Q
4Q

8,806

1,970
2,330

1Q
3Q

2,515

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

198+14.4%1,172

1,024
219244296
264

285
287316282+11.9%1,363

1,218
212

188

1,520335

342367350

299482517

371337296

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

FY2021 Forecast of Financial Results(JPYmn, %)Items

FY2021
Forecast

FY2020ResultChange

YoY

15,163

16,654-1,491-9.0

6,486
8,676

7,860
8,793

-1,374-117-17.5-1.3

57.2

52.8+4.4－

8,268
54.5

8,689
52.2-421+2.4-4.8－

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 toowners of parent

245-1,183+1,429

－

Sales
Cost of sales

Gross profit
Gross profit margin
SG&A expenses

SG&A-to-sales ratio

Assumption of FY2021 Forecast“GLOBAL WiFi”

PremiseCommon

Monetize our domestic business and build new businesses and services making themost of the customer base (corporate customers working with overseas
companies, individual customers who like traveling, etc.).
Continue to improve profitability and competitive advantage by continuing thelow-cost operation system that even when overseas demand gradually recovers.
Correspond to next-generation communication standards and technologies (5Gand eSIM, etc.).

Domestic

Calculate based on the growth rate in the previous fiscal year, taking into accountthe 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 will end.
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 to recoverby about 25% compared to that in 2019.

Overseas

Outbound (travelers from Japan to overseas): Expect to remain sluggish inFY2021, same as that after March 2020. After October 2021, it is expected torecover 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.

Assumption of FY2021 Forecast
Information and Communications
ServicePremiseCommonGrow the business centered on monthly in-house services (recurring revenue)
while slightly increasing and maintaining the revenue from subscription agency
contracts and equipment sales (one-time revenue).
Under the circumstances of COVID-19, the impact on visiting sales is minor by
utilizing online sales.
Flexibly respond to changes in the external environment, taking advantage ofstrength 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 indomestic leasing transaction volume.
Actively sell monthly website production service “Vision Crafts!”.

Fixed-line communication,Mobile communication,Broadband

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

Eco solution

Actively accept orders of electricity discount services, targeting store-based
operators.

Policy on Growth Strategy
Existing businessNew business / Service building

Increase productivity.
PolicyKey phrase

Sales channelBusinessstructure

Customer baseDevelop a new business as a thirdpillar.

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

Three-pillar business structure that responds tochanges in the times.

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

WEB
marketing

Sales

CLT

Online / Offline

Customer Loyalty Team

Shops

Airport counters
etc.
Corporate customers
Startups, growing
working withcorporate customers
overseas companies

Shipping
centerGovernments /local governments,Schools, etc.

Individual customers
who like traveling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” forcorporate customers.
Available for teleworking with options.
Contracts from corporate customers are favorably obtained because theconvenience of the plan is permeating through its 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 atthe office” yet?
M: Wi-Fi kept at the office!?

“Global WiFi for Biz”

Users hasexceeded15mn!
*1Companies
introducing
Wi-Fi rental foroverseas use
41,000 *2

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

“No need” to apply, receive, return
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!

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.
Customers can use it as a trial with rental (with special discount).
After checking the communication environment, customers can purchasea Wi-Fi router that meets customers’ needs.
Trade in the device when canceling (Vision WiMAX original service).
Vision WiMAX is a service that meets all of the above.
Vision Inc.
TSE 1stSection:9416
Price

DeviceHow to use

For corporate
customers
AreasCampaign

Apply
Usage example

Safe forbeginners

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

For teleworking, online classes

Q&A

Reasons to choose Vision WiMAX

No initial cost

Arrive quickly.

365 days available

Trial rental

Trade-in whencancel15mn rental
records

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 variousneeds.
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 withouta 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) of related assets
such as rental assets in FY2020/2Q (Wi-Fi router devices).
(JPYmn)(JPYmn)

1,156
1,093

COST

SEGMENT PROFIT OR LOSS (-)
225
178

777
542 584 545

418428 455 443 443

461
10-19Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.
SG&A expenses 591 572 439 328 340 314 273 279 276 269 267 247
Cost of sales

Overseas
telecom cost292 313 209 203 226 223 143 146 168 143 149 193

210 271 129

10177231131

27

21-90-107-0-17 -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
Sales of mobile communication equipment are strong (the number of companies introducing teleworkingincreases).
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%
11.7%

21.9%

9.3%

JPY
4,534mn

10.6%

14.5%

30.5%

Fixed-line communication
Internet media

JPY
4,703mn

27.6%

10.9%

Mobile communication
Eco solution

Broadband
Construction related

15.3%

20.8%

11.2%

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), which will provide a stableearnings base over the long term.
(JPYmn)Strengthen sales of in-house services (monthly) since FY2019.
830
Strengthen sales and expand services to reach the profit of JPY1bn.

730

In-house services(monthly)
Stock earnings

590620530

550

FY2015FY2016FY2017FY2018FY2019FY2020

0.5
500.8
80

1.3
130

1.91903.33304.7360470

470
4.74604.6460
4.6

420
4.2

400
4.0360
3.6

Stock earnings: Revenue from continuation fee associated with subscription agency contract in communication service business and manufacturer maintenance fee in OA
equipment sales business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 and Communications Revolution