3rd Quarter FY2021

Financial Results

November 9, 2021
Vision Inc.
TSE 1st Section： 9416
1

3Q FY2021 Financial Results

Performance Highlights and3Q FY2021 Results

P.3

FY2021 Financial Forecast

P.9

Efforts for Growth(Growth Strategy Focusing on Social
Environment with COVID-19 and PostCorona World)

Sustainability including ESG
Factors

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

P.15

P.33

2

Performance Highlights
and 3Q FY2021 Results

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

3

Consolidated Profit and Loss Statement(JPYmn, %)FY2021/3Q
ResultFY2020/3Q
ResultChange13,392

13,108+283+2.2

Cost of sales

6,573

6,284

+289

+4.6

Gross profit

6,818

6,824

-5

-0.1

Gross profit margin

50.9

52.1

-1.1

－

SG&A expenses

5,804

6,765

-960

-14.2

SG&A-to-sales ratio

43.3

51.6

-8.3

－

1,013

58

+955

+1,641.8

7.6

0.4

+7.1

－

1,042

167

+874

+521.0702-1,226+1,928

－

Items
Sales

Operating profit
Operating profit margin

Recurring profit
Profit or loss (-) attributableto owners of parent

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

YoY

4Factors for Changes in Operating Profit
Sales“GLOBAL WiFi” Business: Including inbound and outbound sales from FY2020/1Q, sales are on the increase in 2021. Because thedecrease in sales as there are few overseas travelers is offset by increase in sales through the acquisition of various domestic usageneeds as well as doing contract work on verifying COVID-19 contact tracing applications (see p.41), part of infection prevention
measures at airports carried out by the quarantine stations.
Information and Communications Service Business: Sales are on the rise due to increased purchasing of products (mobile
communication equipment, OA equipment, etc.) which offset a decrease in sales due to lowered unit price of business consignment
fees (agency fees) caused by a marked rise in electricity retail prices (January 2021). Increase in sales due to change in businesscomposition (see P.23).

Cost of sales“GLOBAL WiFi” Business: Cost of sales increased because labor costs associated with the entrusted verification COVID-19 related app
service increased. Overseas communication costs (pay-as-you-go contracts charged based on usage), depreciation costs for rental
assets (Wi-Fi routers), and outsourcing costs to partners continue to decrease (see P.22).

SG&A expenses
Personnel expenses: Personnel expenses decreased due to the sale of ProDrivers business, decreased number of new graduate hires(49 in 2020 → 13 in 2021) decreases, and termination of temporary staff contracts following the expiry of term of contract such as
those for shipping center staff and airport counter staff due to significant decrease in the number of rentals.
Advertising expenses: Advertising expenses are reduced for websites tailored to demand (for listing, etc.).
Other SG&A expenses: Various costs are reviewed and reduced. Sales-linked expenses are reduced (shipping expenses, travel
expenses, supplies expenses, and payment fees, etc.).

(JPYmn)

+674
-985

58

+283

+668

△289

+66

1,013

+220

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

5

Segment Result(JPYmn, %)Segment result

FY2021/3Q
ResultFY2020/3Q
ResultChangeYoY

13,392

13,108+283+2.2“GLOBAL WiFi”

6,493

5,906

+586

+9.9

Information andCommunications Service

6,724

6,666

+57

+0.9

13,217

12,573

+644

+5.1

181

538

-356

-66.3

-7

-3

-3

－

1,013

58

+955

+1,641“GLOBAL WiFi”

749

-48

+797

－

Segment profit margin

11.5

-0.8

+12.4

－

Information andCommunications Service

1,024

1,184

-160

-13.5

Segment profit margin

15.2

17.8

-2.5

－

Subtotal

1,773

1,136

+637

+56.1

Others

-62

-355

+293

－

-698

-722

+24

－

Sales

Subtotal
OthersAdjustments

Segment profit or loss (-)

Adjustments

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

6

“GLOBAL WiFi” Business
Performance Change
Various domestic usage needs steadily acquired. Making efforts to focus onsocial environment with COVID-19 and post-corona world.
Teleworking (The number of extension of the rental period is increasing because the state of emergency is newly declared,etc.).
Sales of standby type “GLOBAL WiFi for Biz” for corporate customers are favorable by making a proposal for teleworking (Thenumber of contracts and communication usage increases).
Acquire various usage needs (teleworking, moving, hospitalization, business trip, combined use with home internet, various
events, etc.).
Sales and segment profit increases by entrusting the app confirmation work, which is part of quarantine measures work carriedout by the airport quarantine station (see p.41).

1Q
2Q
3Q
4Q

1Q SEGM ENT P ROF I T OR LOSS ( - )

SALES

2Q

17,732

3,301

3Q+31.3%+36.8%

4Q

4,462+30.0%+31.8%

7,882 2,636
2,073

2,329
1,697

4,109
2,898

1,781 2,505

3,089

FY2016FY2018FY2017+39.7%-59.0%

7,278

3,929

3,022
2,226

+51.5%

5,084

1,371

6,493

+9.9％

1,272 2,628
1,286

4,075
FY2019430

2,413

13,505
10,392 3,589(JPYmn)3,347
FY2020

2,349

1,140

1,274

1,593
224

245

680

494

295

146
252

224

490

631
724
271

466

871

326
-347

262
117

-27

1,515
FY2021

-90

749
368

FY2016FY2017

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

FY2018FY2019-42

FY2020 FY2021
7

Information and Communications Service Business
Performance Change
Utilizing the strength of having multiple businesses (products/services) and sales
channels, strong sales have been recorded by responding flexibly to changes inthe external environment.
Sales increase due to changes in business composition (products for product sales business: mobile communication equipment, OA
equipment, etc.).
While the semi-conductor chip shortage has affected the stock of OA equipment, we have purchased chips from multiple manufacturers (theincrease in unit price covers the decrease in units sold).
Segment profit is on the decrease due to a decrease in the unit price of business consignment fee (agency fee) associated with the rise inelectricity retail prices, strengthened sales of in-house services (monthly fee), and launch of Vision Denki.
Stock earnings and in-house services (monthly fee) as the revenue base (recurring revenues) are on the increase.

1Q
2Q
3Q
4Q
+2.2%

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

1,725

1,749 1,786

1,703

1,782

1,810

8,806

2,115

2,139

1,970

1,172

2,330 2,146 2,068
1,977+14.4%

1,024

2,004

2,302

2,297
296

2,515

2,357

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

285

219

244

2,009

1,818

+11.5%

4Q

6,724+0.9%

264(JPYmn)

1,520

3Q
+3.9%

2,207
1,764

SEGMENT PROFIT

2Q
-1.7%

6,948 7,104
1,730

1Q

SALES

287
316

282

+11.9% 1,363

1,218

188

335

1,024

212

342

367

350

299

482

517

371

246

-13.5%

367

337

296

410

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

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8

FY2021
Financial Forecast

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9

FY2021 Financial Forecast(JPYmn, %)Items

FY2021
Forecast

FY2020ResultChangeRatio ofchange17,46816,654+814+4.9

Cost of sales

8,260

7,860

+399

+5.1

Gross profit

9,207

8,793

+414

+4.7

52.7

52.8

-0.1

－

8,200

8,689

-489

-5.6

46.9

52.2

-5.2

－

1,007

103

+903

+869.6

5.8

0.6

+5.1

－

1,028

227

+800

+351.1685-1,183+1,869－Sales

Gross profit margin

SG&A expenses
SG&A-to-sales ratio

Operating profit
Operating profit margin
Recurring profit
Profit or loss (-) attributable toowners of parent

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

10

FY2021 Segment Forecast(JPYmn, %)Segment Forecast

FY2021
Forecast

FY2020ResultChangeRatio ofchange17,46816,654+814+4.9“GLOBAL WiFi”

8,319

7,278

+1,040+14.3

Information andCommunications Service

8,882

8,806

+75

+0.9

17,201

16,084+1,116

+6.9

271

580

-308

-53.2

-4

-10

+6

－

1,007

103

+903

+869.6“GLOBAL WiFi”

803

-90

+894

－

Segment profit margin

9.7

-1.2

+10.9

－

Information andCommunications Service

1,242

1,520

-277

-18.2

Segment profit margin

14.0

17.3

-3.3

－

2,046

1,429

+616

+43.1

-50

-392

+341

－

-988

-933

-55

Sales

Subtotal
OthersAdjustments

Segment profit or loss (-)

Subtotal
OthersAdjustments

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

－
11Full Year Performance Change (Quarterly)(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

3,938

4,706

4,747

17,468

－

－

－

－

285

368

359

1,007

－

－

－

－

7.3

7.8

7.6

5.8

Operating profit

Operating profit
Composition ratio (vs. FY)

Operating profit margin

Sales
Composition ratio (vs. FY)

FY2021FY

5,961

Composition ratio (vs. FY)

FY2020

４Ｑ

4,933

Composition ratio (vs. FY)

FY2019３Ｑ

4,922

Composition ratio (vs. FY)

FY2018２Ｑ

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

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

12

FY2021 Full-Year Financial Forecast
Assumptions of FY2021 forecast, progress, and business policies
External environment and business policies (overall)
The spread of COVID-19 (including its variants) in each country, vaccination and its effects, the impact on business activities ofcompanies and shops, and overseas travel with a vaccination certificate, and other uncertainties are expected to be continued.
While aiming to improve profitability and profit margin through flexible business operations co-existing with COVID-19, we will
aggressively develop new businesses and new services (including those for improved convenience) in the post-corona world, andcarry out business activities to achieve growth that exceeds the growth potential before the spread of COVID-19.

Explanation for future forecast information
We achieved operating profit and other profits in the full-year consolidated earnings forecast for the fiscal year in FY2021/3Q(announced on August 10, 2021). For FY2021/4Q, due to the uncertain impact of COVID-19 (including its variants) on theGroup's business activities as well as aggressive investments for business growth in the next fiscal year and beyond (newbusinesses, new services, promotion expenses for the rebuilding of the “Global WiFi” business, purchase of various
equipment, etc.), the Company plans to leave its full-year forecast for 2021 unchanged.

“GLOBAL WiFi” Business
Reflecting steady domestic demand “GLOBAL WiFi for Biz.” ⇒ New contracts and communication service usage are on theincrease. The increase reflects the assumption of FY2021 forecast as announced on February 15, 2021, “After October 2021,
overseas travelers (outbound, inbound) are expected to recover by about 25% compared to that in 2019.” On the other hand, thecontinuation of temporary contract work during the COVID-19 pandemic is still uncertain and thus has been excluded from the 4Q
forecast. ⇒The number of overseas travelers in September 2021 is expected to decrease by 97.0% for outbound and99.2% for inbound compared to in 2019 (estimate based on published data by JNTO). As of the time of publication ofthis report, temporarily contracted work relating to COVID-19 efforts are still ongoing.

Information and Communications Service Business
Reflecting the current strong situation and the increase in in-house service contracts (earn monthly fee). ⇒ Recurring revenue(stock revenue and in-house services) increases steadily. The FY2021 business performance is impacted by the launch of“Vision Denki” service (sales: -JPY26mn, operating profit: -JPY166mn). ⇒ The number of Vision Denki contracts is steadily
increasing. The business is expanding while preparing for a sharp rise in electricity prices (procurement costs).
Copyright(C) 2021 VISION INC. All Rights Reserved.

13

Initial Assessment Result in Conformity of Continued
Listing Standards for New Market Segments
Initial Assessment Result in Conformity of Continued Listing Standards
for New Market Segments
ResultVision Inc. received “the Initial Assessment Result in Conformity ofContinued Listing Standards for New Market Segments,” specified June 30,
2021 as the transition reference date. We confirmed that each of the“number of shares outstanding,” “market capitalization of shares
outstanding,” “ratio of shares outstanding,” and “trading value” complies
with the listing standards of the prime market.
FutureSelection procedure to be listed on a new market segment will be decided
after careful discussions at the Board of Directors’ meeting. We will proceedwith the prescribed procedures for applying to select a new market
segment.
To receive your support also in the future, we will continue to strive
to disclose information in a timely and appropriate manner, andpursue sincere IR to improve corporate value over the medium tolong term.
Copyright(C) 2021 VISION INC. All Rights Reserved.

14

Efforts for Growth(Growth Strategy Focusing on
Social Environment with COVID-19
and Post-Corona World)

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

15

Active Sales Expansion of “GLOBAL WiFi for Biz”
- Gaining Competitive Advantage When Travel Recovers -Sales of standby type “GLOBAL WiFi for Biz” for corporate customers
are favorable by making a proposal for teleworking (increase in thenumber of contracts and the communication usage).
Income from the basic monthly charge is on the increase (recurring revenue).
Domestic communication (for teleworking) increases.
Overseas communication increases (long-term use by local expatriates, etc.).
⇒ Utilization rates in China, the United States, South Korea, Vietnam, and Thailand, etc. are
gradually recovering.

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

apply

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

16

Strengthening of Domestic Wi-Fi Sales“GLOBAL WiFi” Business
Acquire 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 homeinternet, etc.
Convenience that you can rent it in various places for the required period (on a daily basis) is popular with the users invarious scenes.
Increase use for hospitalization and moving (temporary use until fixed line opening) by strengthening the promotion.
The extension of the COVID-19 state of emergency increased demand for companies already in contracts with us andthe churn rate was lower than expected.

Teleworking

New employee
training

Online meeting

For school and educators

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

Essential
item duringhospitalization!

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

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

“WiFi rental.com” isuseful for you atsuch times!
Copyright(C) 2021 VISION INC. All Rights Reserved.

17

The Launch of an Ultra-High-Speed 5G Plan
- Gaining Competitive Advantage When Travel Recovers -The launch of an ultra-high-speed 5G plan, a first in the Wi-Fi routerrental industry.
The country and region where the service is offered first are Hawaii and the mainland USA, themost popular destinations ever.
We will expand the service area to South Korea, China and other countries and regions when
we are fully prepared.
Striving to provide quality services and networks and expand service areas continuously, weoffer easy-to-use mobile Internet connectivity around the world in order to contribute tobusiness and sightseeing in the post-corona/with-corona world.

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

18

Launch of “World eSIM”– Gaining Competitive Advantage When Travel Recovers –Launch of an eSIM service, “World eSIM”, that can be used in over 120
countries around the world.
You don’t have to carry your bulky Wi-Fi router device.
Like for rental Wi-Fi routers, there is no need to stop at an airport counter to return or pick up.
Application for “World eSim” is available online, so you can do it both from home and abroad.
Can be used for an assortment of needs.
When multiple users are using multiple kinds of devices (smartphones, tablets, laptops, etc.): Mobile
Wi-Fi Router Rental
When a single user is using their smartphone: World eSIM
Since SIM-free mobile phones have long been in Europe and the United States, we plan to actively
acquire customers from these areas, as they have a strong tendency to purchase SIM cards on the
spot while traveling due to phone SIM cards being unlocked which has only been the case in Japanin the recent past.

Carrier

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

19

Vision WiMAX- New Service Making the Most of Our Customer Base New service that responds to customer feedback.
In our survey, many customers use the Wi-Fi router for“trial before purchasing”.
Wi-Fi router sales service for customers who are consideringpurchasing.
Customers can use it as a trial for rent (special limited
discount provided).
After checking the communication environment ofcustomers’ home etc., they can purchase it that meets
customers needs.
Customer will take it as a trade-in when terminating thecontract(Vision WiMAX original service).
Vision WiMAX is a service that meets all of customers needs.

Ultra-high-speed
Unlimited 5G plan available!

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

20

“Tsuyaku-fukikae.com”- New Service Making the Most of Our Customer Base The service for online/offline business negotiations and conference
interpretation, video translation/dubbing, and translation.
“Overcoming the language barrier, make your business more global.”
Provide interpretation, translation, and dubbing services that can be available in various business situations at
reasonable prices.
Emphasize communication with overseas investors andsupport the enhancement of the English-language disclosure.
Also support dubbing and subtitles of financial summary video,translation and other services of financial statements, financial resultspresentation materials, and convocation notices of general shareholders’meeting.

Overcoming the language barrier,Video translation/dubbing (Japanese → English)
Financial summary video (Vision, Inc.)

Example of interpretation (English ⇄ Japanese)
Special talk with Mr. Audrey Tang, Digital Ministerof Taiwan

make your business more global.

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

21

Changes in Monthly Cost and Segment Profit“GLOBAL WiFi” BusinessProfits are gradually recovered by continuing low-cost operation and acquiring various
usage needs.
Acquires actively various needs for using mobile Wi-Fi router (“GLOBAL WiFi for Biz”, etc.).
Build a business structure that will generate higher profits and profit margins after overseas travel recovery thanthose before the spread of COVID-19 (FY2019) by reviewing various costs and expenses, and improving operational
efficiency.
Although various domestic usage needs are expected to decrease in the post-corona world, a certain number ofneeds seems to remain thanks to the work style reform such as the introduction of teleworking, etc. (by combining
office work and teleworking, etc.). It will be a factor for increasing profits compared to those in the period before thespread of COVID-19.
SEGMENT PROFIT OR LOSS (-) (JPYmn)
COST(JPYmn)1,156

FY20201,093

FY2021

225
178
777
672

584

548542
439

755

752

703

735

687

102 99
67

545

29

415

163

455

428

418

123
85

12

10
-19

-90
Jan Jan Feb Feb Mar Mar Apr Apr May May Jun Jun

Jul

Jul Aug Aug Sept Sept

20

20

21

21

20

21

20

21

20

21

20

21

20

21

20

21

20

21

SG&A expenses

591 244 572 243 439 264 328 278 340 242 314 260 273 258 279 255 276 266

Cost of sales

292 176 313 158 209 263 203 373 226 404 223 400 143 463 146 475 168 438

Overseas telecom cast 210 19 271 13 129 20

10

20

17

56

7

26

2

30

3

25

11

30

100

-0

-17 -3

-2

-88
-107
-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.
22
Copyright(C) 2021 VISION INC. All Rights Reserved.

Gross Profit Composition
Information and Communications Service Business
Utilizing the strength of having multiple businesses (products/services) and sales
channels, we have responded flexibly to changes in the external environment to record
strong sales.
Sales of mobile communication devices (for telework or switching over to smartphones, etc.) arestrong.
The composition ratio of eco-solution business decreased because the unit consignment fees
(agency fee) went down following the temporary rise in electricity prices and the launch of ourelectricity service “Vision Denki” (stock earnings).

3Q FY2020 Cumulative

0.6%

3Q FY2021 Cumulative

1.0%

2.4%
11.3% 15.3%
11.3%

JPY
3,533mn 20.4%

27.9%
Fixed-line communication
Internet media

11.0%
Mobile communication
Eco-solution

2.7%
7.6% 13.5%
11.2%

JPY
25.6%
3,626mn
28.6%

Broadband
Construction related

9.7%
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.
23

Sales of In-house Services (Monthly Fee) are Strong- Provide Products/Services Responding to Customer Needs and the Times -Sales of in-house services (monthly fee) “VWS series” are strong.
Services developed and used in-house are expanded to users (DX promotion).
Provide users who need our services with required features of ourservice in a cloud environment on a monthly payment basis.
CONCEPT
Providing a more comfortable working environment for allcompanies
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

Wireless
Fidelity

Sales

Approval

GoodmorningCallsystemSchedule

TeleworkWEB
meeting

Schedule

Efficiency

GPS

Engagement

Chat

AttendanceEntering
andleaving

Efficiency

Out ofofficeSFA
Employeelist
Evaluation

Human
resources

Hi, ...
Security

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

24

Sales of In-house Services (Monthly Fee) are Strong- Provide Products/Services Responding to Customer Needs and the Times -Sales of 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-corona/in the post-corona world.
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
more than 100 websites a month, we havedeveloped a website production service that“communicate visually!” with simple operations.
This is “Vision Crafts!”.
Copyright(C) 2021 VISION INC. All Rights Reserved.

25

The Launch of Our New Power Service “Vision Denki“- Provide Products/Services Responding to Customer Needs and the Times -The Launch of “Vision Denki,” a new power service that contributes tothe reduction of electricity bills for all business partners.
Electricity is the lifeline for businesses. To use stable electricity with peace of mind because it is suchan era. Make their wishes of such business partners a reality, not a fantasy.

“Energize Japanese companies.” “And energize all over Japan.”
Even after the electricity liberalization, we have cooperated with Power Producer and Suppliers (PPS)
to support the reduction of electricity rate as a subscription agency, responding to the voices that “therate system is difficult to understand and the rate remains high after all.”We can expect that our Group will grow significantly in the future in asking for requests of many
companies, shops and stores. So, we become a new Power Producer and Supplier (PPS) andlaunch “Vision Denki” as a retailer.
From the perspective of SDGs, we contribute to decarbonization (carbon neutral) with Vision Denki +power saving by replacing the air conditioner + LED cross-selling.
Revenue model will change from shot earnings (sales commission) through a subscription
agency to stock earnings (monthly electricity charge) associated with the use of electricity by
end users. We make efforts to increase future profits while covering
these temporary negative impact (see p.27) on our Group’s profits
with those of other businesses.

“Vision Denki”

covers all over Japan.
* Excluding Okinawa and remote islands.
Copyright(C) 2021 VISION INC. All Rights Reserved.

26

Impact on Earnings due to the Launch of Our New PowerService “Vision Denki“
The earnings of the business will decrease compared to the current shotearnings (sales commission) through the subscription agency until thenumber of “Vision Denki” contracts are accumulated.
Expand the business in order to build a stable earnings base in the future, while covering the impact of thisbusiness on the entire Vision Group.
Assuming that the sales/business profit change and the number of contracts (acquisitions) of “Vision Denki” are the same, see
the table below for comparison of business profits between the current subscription agency and “Vision Denki” and cumulative
profit or loss (difference) change.
It is expected to be profitable in a single month in February 2023 and to be completely
profitable from FY2024.
When electricity demand increases, such as in the summer, electricity charges (purchase costs)
are expected to increase, and the business profit fluctuates seasonally.

Sales/business profit change (assumed)
Sales(JPYmn)Comparison of business profits and7,605

Business profit

949

cumulative profit or loss change (assumed)

642
455420
274

5,298
22
2,998

-144

1,156
63

19
-144

FY2021

420

949
Subscription
agencyVision Denki-179
FY2022

102

19

-179

FY2021

FY2022

FY2023

FY2024FY2025

22

102

274

455

642

-144

-179

19

420

949

-166

-448

-579

-340

422

Cumulative

FY2023

FY2024FY2025profit or loss
(August 2021-)

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27

New Power Service “Vision Denki“ARR (Annual Recurring Revenue) Change
Build a stable revenue base that is resistant to the effects of theexternal environment.
Build a long-term stable revenue base (number of contracts x end-user electricity bills – electricitycost) by changing the revenue model from a subscription agency (number of contracts x agency
fee unit price) to an in-house service (become a PPS and offer electricity).
ARR: Annual Recurring Revenue. Calculated by multiplying MRR (Monthly Recurring Revenue) as ofeach term-end by 12.
MRR shows stable profits that a company can repeatedly earn every month, and the table below (left) shows the gross profitchange.
(JPYmn)Sales (assumed)

ARR (Gross profit, assumed)
2,105

7,605

+33.9%+43.5%

1,572+60.9%

+166%

5,298
+76.7%

977

2,998
+427%

451

+159%

85

ARR
Number of contracts
as of term-end

1,156

FY2021

FY2022

FY2023

FY2024FY2025

85

451

977

1,572

2,105

1,841

9,717

20,47332,51643,543+1,725%63
FY2021

FY2022

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FY2023

FY2024FY202528

Stock Earnings and In-house Services (Monthly Fee)
Gross Profit Change Information and Communications Service Business
Strengthen stock earnings and in-house services (monthly fee), which will become astable earnings base in the long run.
Strengthen sales of in-house services (monthly fee) since FY2019.
(JPYmn)Strengthen sales and expand services to reach the profit of JPY1bn.
FY2021/3Q cumulative period is JPY740mn, which is progressing steadily. 830

740

730
530

In-house services(monthly fee)
Stock earnings

550

590

620

FY2021/3Q

FY2015FY2016FY2017FY2018FY2019FY2020

0.5
50

0.8
80

130
1.3

1.9
190

3.3
330

470
4.7

480
4.8

4.7
470

4.6
460

4.6
460

4.2
420

4.0
400

3.6
360

2.6
260

cumulative

Stock earnings: Revenue from continuation fee associated with subscription agency contract in Information and Communications Service
Business and maintenance fee in OA equipment sales business etc.
Copyright(C) 2021 VISION INC. All Rights Reserved.

29

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

✓ 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.

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

CLT

WEB

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

Shops
Airport counters
etc.

Startups, growing
corporate customers

Customer Loyalty
Team

Sales
Online / Offline

Shipping
centerCorporate customers
working with overseas
companies

Individual users by corporate customers

Partner
including travel
agencies and OTA

Governments /local governments,
Schools, etc.

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

Globalaffiliatedcompanies

Individual
customers who
like traveling*including inbound30

Glamping Business- Develop a New Business as a Third Pillar -Launch a “Glamping Business” as a business that will grow into the third
pillar next to the Information and Communications Service Business andthe “GLOBAL WiFi” Business.
Launch the business in the first half of 2022 (planned).
Costs and expenses for acquisition of land for businessuse (including leasing) and the acquisition andinstallation of equipment such as dome-shaped
tents: approx. JPY1,200mn
Selection of land, equipment, and service, etc. isprogressing smoothly toward the launch of the business.
Release of teaser site (https://www.vision-net.co.jp/glamping/)

Completely private space glamping fully equipped with air-conditioning, private toilet, andopen-air bath for all weather.

Images of glamping facilities, etc.

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

31

Acquisition of adval Corp. to Make It a Subsidiary- Provide Products/Services Responding to Customer Needs and the Times -Acquire adval Corp., a company that offers its rental space (for conference
room/teleworking space) for BtoB use at more than 200 locations throughout
the country on a monthly flat-rate basis, as a subsidiary through simple sharedelivery. Scheduled date of share delivery (effective date): December 1, 2021
For BtoB use, sales strength (our Group) x planning strength (adval) “Promotionof rental conference rooms/teleworking space subscriptions”
By maximizing the combined customer base, products and services, business partners, know-how, and more of bothcompanies, we can expect sales improvement, input efficiency, and reduced costs, judging that they will lead tomedium- to long-term improvement of corporate values. This is why we decided to make adval a subsidiary.

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

32

Sustainability including
ESG Factors

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33

Contribution toward Sustainable Development ofSociety and Earth
The Group’s management philosophy is “To contribute to the global information andcommunications revolution.”
Information and communication technology and services have the potential to contributesignificantly to solve social and environmental issues through “the efficiency improvement(optimization, efficiency, automation, etc.)” and “the activation of communication” invarious fields.
Based on the idea that “The future of information communication for the future of all
people,” the Group aims for the sustainable growth and the increase in our corporate value
through ESG-friendly management and business strategies. In addition, we will take the lead incontributing to the harmonious and sustainable development of the society and the Earth bysolving social issues represented by the SDGs set by the United Nations.

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

34

Contribution toward Development of International
Economy and Society
Various international exchanges (cooperation, support, business, tourism, etc.) are being carriedout at the national, corporate, organizational and individual levels to resolve social, economic andenvironmental issues of sustainable development.
In the “GLOBAL WiFi” Business, we will contribute to develop the international economy andsociety by providing a safe, secure, and comfortable mobile Internet connection
environment that is the same as the environment in which we communicate in our home country,
to everyone who carries out various international exchanges around the world.

Striving to provide quality services and networks and expand service areas continuously, we
support various activities in the post-corona/with-corona world.
Example of efforts
Expand service areas for unlimited plan, offer an ultra-high-speed 5G plan, effective use of sales channels (airport
counter), expand Tabi-naka service (optional services such as mobile battery, translator, interpreter service, etc.),
emergency location information service, support the spread of the GIGA school concept, support people who are
active overseas (including groups), etc.

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

35

Environmental Activities
Acquire a “Green Site License” to offset the carbon footprint of our
website.
Provide an environmental support with “Green Electricity” for ouractivity on the website for CO2 reduction.
Support and cooperate with the organizations which provide
information, support activities in disaster areas, and provide
assistance to various activities to “realize a society where people
can support each other at the times of earthquake.”

Activities to protect the natural environment through the Ecology
Cafe.
Paperless efforts
Provide laptop, iPad, etc. to employees.
Utilize video (web) conference (to eliminate unnecessary traveling).
Utilize electronic forms and an enterprise SNS actively.
Select recyclers.
Operate the business with our minimum required tangible fixed
assets. Tangible fixed assets account for 3% of total assets as ofthe end of September 2021.
Adapt to various environmental changes.
Provide rental service of the LED lighting that generates less heatand do not contain harmful substances at a low initial cost.
Reduce carbon dioxide emissions by saving power and reduce
environmental burden.

Provision of laptop, iPad, etc.

Video (web) conference

We received high praise for our efforts to achieve the SDGs (environmental
consideration through LED sales and installation work) and were registered as an“Okinawa SDGs Partner,” a company/organization that promotes SDGs.

Electronic forms (workflow)
Utilizing of an enterprise SNS

Select recycle
companies
Copyright(C) 2021 VISION INC. All Rights Reserved.

36

Social Activities
Various recruitment channels
Fair recruiting, referral recruiting, and active recruiting of women(Female employee ratio: 33%).
Hire multinational people (Foreign nationals: 16.9％ (permanent employees)).
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 increase and promotion based on
performance appraisal 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 benefit 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.
Occupational accident insurance (compensation for the excess of workers’ accident insurance),
insurance to cover the cost of illness/injury other than working hours (taking out acorresponding insurance is required).
Copyright(C) 2021 VISION INC. All Rights Reserved.

37

Social Activities

Internal Communication

Real-time internal communication
Share information and communicate each other in real time, using
the social media (JANDI).
Realize quick communication and decision-making by utilizing online
communities with limited participants (communities for holding board
meetings, and for reaching a decision by using a circular letter, etc.).
* JANDI are utilized internally at first and the revised version will then be provided to our customers.

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

Publish in-house booklet “Vision Tsushin”
Publish the in-house booklet “Vision Tsushin” quarterly (booklet, posted on the intranet).
The booklet contains:
Messages from executives;
Our new efforts;
Comments from the top sales representative;
Introduction of our Divisions; andVarious information on labor, and compliance, etc.
It has been published since 2012.
Copyright(C) 2021 VISION INC. All Rights Reserved.

38

Social Activities“Vision Kids Nursery” as a company-led nursery schoolChildbirth and childcare are both big events for employees’ lives. Therefore, we implement themore flexible working rules, expand the vacation system, and encourage employees to take aleave, etc.
⇒ Provide more comfortable work environment (a sense of security that their children are
nearby) than ever before.
* Establish a childcare facility within a site of CLT, where female employees account for morethan 90%.
Create an environment where it is easy for employees to return to work, and 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.

39

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.
The organization has been supported by many medical workers and volunteers. More than 4,500 volunteers
have participated in the activities and conducted more than 200,000 treatments
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 rental GLOBAL WiFi routers 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 support indelivering medical care to as many children as possible.

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

40

Social Activities
Prevention of the spread of COVID-19 (quarantine measures)/the Ministry of Health, Labour and Welfare“New measures related to quarantine”
The following applies to all persons entering Japan from overseas(regardless of nationality):
All persons must present a negative COVID-19 PCR test certificate, submit a
Written Pledge, carry a smartphone, register and use necessary apps, andsubmit a questionnaire.

Our activities
Entrusted with app confirmation work, which is part of the above-mentioned quarantine measures
work carried out by the airport quarantine station.
In addition to the above contract work, provide a smartphone rental service for those who do nothave a smartphone or who have a smartphone that cannot install the specified app (implement
based on the contract between each airport terminal building company and our company).
Required apps (as of September 30,
2021)

MySOS (Health and Location
Monitoring App)
Location information record
storage settings
COCOA (COVID-19 ContactConfirming App)

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

41

Governance System

Independent officer system
Total number of Directors: 6(including independent outside directors: 3 / Male: 5, Female: 1)⇒ They have rich experience in business management including web marketing,business for foreign visitors in Japan, financial industry and other global businesses,
and business owners.
⇒ We attach great importance to the constructive dialogue with investors. When receiving anoffer for dialogue from any investor, not only the director in charge, but also an any outside
director will engage in dialogue.
Total number of Audit & Supervisory Board Members: 4(Independent outside auditors: 4)⇒ CPAs, prosecutors/lawyers, and business owners.

Strengthen information security
Acquired ISMS (Information Security Management System) certification
Acquired the certification for “ISO/IEC 27001.”
Established and has run the Information
Security Committee.

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

42

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.

43