Consolidated Financial Results for the Third Quarter Ended December 31, 2021
〔Japanese GAAP〕
November 9, 2021
Vision Inc.
Stock Listing
TSE
Company9416
URL
https://www.vision-net.co.jp/
Stock CodePresident, Founder & CEO
Kenichi Sano
Representative
Director & Managing Executive Officer
Shinichi Nakamoto
Contact
TEL +81-3-5325-0344
Scheduled date of filing of quarterly securities report:
November 10, 2021
Scheduled starting date of dividend payment:－
Quarterly supplementary financial document:
Yes
Quarterly financial results briefing:
Yes (for institutional investors and analysts)(Round down to million yen)

1.

Consolidated Financial Results for the Third Quarter Ended December 31, 2021
(January 1, 2021 through September 30, 2021）(1) Consolidated Operating Results (Cumulative)
Net sales(% change from the previous corresponding period)
Profit attributable toOrdinary profit
owners of parent

Operating profit

Million yen%

Million yen%

Million yen%

Million yen

%

1,042
167

521.0
-94.4

702
-1,226－－3Q FY2021
13,3922.2
1,013－
3Q FY2020
13,108
-36.2
58
-98.0
(Note) Comprehensive income; 3Q FY2021 :728 million yen ( －%)3Q FY2020 :-1,205 million yen ( －%)Basic earnings per share Diluted earnings per share
Yen

Yen

3Q FY2021
14.91
14.50
3Q FY2020-25.94－(Note) Diluted earnings per share for 3Q FY2020 is not stated because there is a net loss per share, although there are dilutive shares.
(2) Consolidated Financial Position
Total assets
3Q FY2021
FY 2020(Reference) Equity;

Net assets

Equity-to-asset ratio

Million yen

Million yen%

12,632
11,313

9,502
8,769

75.2
77.3

3Q FY2021 :FY 2020:

9,493 million yen
8,746 million yen

2. Dividends
Annual dividend
End of 1Q

End of 2Q

Yen

End of 3Q

Yen

FY 2020
0.00－
FY 20210.00－
FY 2021 (Forecast)(Note) Revisions to dividend forecast during the most recent quarter:Year-end

Total

Yen

Yen

Yen

－
－

0.00

0.00

0.00

0.00

None

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending December 2021 (January 1, 2021 throughDecember 31, 2021)
Net sales
Million yen(% change from the previous corresponding period)
Profit attributable to
Basic earnings per
Ordinary profit
owners of parent
share

Operating profit%

Million yen%

Million yen%

Million yen%

Yen

17,4684.9
1,007 869.6
1,028 351.1
685
14.55
－
(Note) Revisions to financial forecast during the most recent quarter:None
For further details, please refer to “1. Qualitative Information on Quarterly Financial Results (3) Explanation of Consolidated
Financial Results Forecast and Other Forward Looking Statements” on page 3 of the attached document.

*

Notes

(1) Changes in significant subsidiaries during the period

:

None

(2) Application of accounting procedures specific to preparation of the quarterly financial statements： None(3) Changes in accounting policies, accounting estimates, and restatement①

Changes in accounting policies associated with revision of accounting standards

:

None

②

Changes in accounting policies other than ①： None③

Changes in accounting estimates： None④

Restatement： None(4) Shares issued (common stock)①

Shares issued as of term-end (incl. Treasury stock)

3Q FY2021

49,053,000

FY 202049,027,800②

Treasury stock as of term-end

3Q FY2021

1,948,090

FY 2020

1,948,044③

Average number of shares outstanding

3Q FY2021

47,090,561

3Q FY2020

47,270,324*

Quarterly financial summary is not subject to the quarterly review procedures by certified public
accountants or audit firm.

*

Explanation for appropriate use of forecasts and other notes

The forward-looking statements such as operational forecasts contained in this statements summary are based in information
currently available to the Company and certain assumptions which are regarded as legitimate. Actual results may differ from suchforward-looking statements for a variety of reasons. For the assumptions on the earnings forecasts and notes on their use, pleaserefer to “1. Qualitative Information on Quarterly Financial Results (3) Explanation of Consolidated Financial Results Forecast andOther Forward Looking Statements” on page 3 of the attached document.

Contents of Attachment
1. Qualitative Information on Quarterly Financial Results……………………………………………………... 2(1) Explanation of Operating Results…………………………………………………………………………… 2(2) Explanation of Financial Position…………………………………………………………………………… 3(3) Explanation of Consolidated Financial Results Forecast and Other Forward Looking Statements…….…... 3
2. Quarterly Consolidated Financial Statements and Primary Notes……………………………………………. 5(1) Quarterly Consolidated Balance Sheet………………………………………………………………………. 5(2) Quarterly Consolidated Statement of Profit or Loss and Comprehensive Income…………..………………. 6(3) Notes on Quarterly Consolidated Financial Statements……………………………………………………… 8(Notes on Going Concern Assumption)……………………………………………………………………….. 8(Notes on Significant Changes in Shareholders’ Equity)……………………………………………………… 8(Segment Information, etc.)……………………………………………………………………………………. 9―1―

1. Qualitative Information on Quarterly Financial Results(1) Explanation of Operating Results
For the current consolidated cumulative period, Japan’s economy had been starting to show signs of recovery amidst a harsheconomic environment due to the COVID-19 pandemic, but the pace is now slowing down.
Looking ahead, the economy is expected to pick up, partly due to the effects of various policies and improvements in overseas
economies and as various countermeasures against infection are taken and vaccination rates increase. However, we need to closely
monitor risks due to the effects through the supply chain, trends in infection rates in Japan and overseas, and fluctuations in financial
and capital markets.
While still in a severe economic environment where measures are being taken to restrict travel both internationally as well as
domestically, the Group has continued to focus on the “GLOBAL WiFi” and Information and Communications Service businesses
for the domestic market.
As a result, net sales, operating profit, ordinary profit, and profit attributable owners of parent for the third quarter of the current
fiscal year all exceeded the results of the third quarter of the previous fiscal year.
FY2021/3Q Result(million yen)

FY2020/3Q Result(million yen)

Change(million yen)

YoY
(%)

Net sales

13,392

13,108283

2.2

Operating profit or loss (-)

1,013

58

955

1,641.8

Ordinary profit

1,042

167

874

521.0

702

-1,226

1,928－

Profit or loss (-) attributable toowners of parent
Business results by segment are as follows.
“GLOBAL WiFi” Business

During the third quarter of the consolidated cumulative period, there was domestic demand for Wi-Fi router rentals to be used invarious situations such as moving, business trips, various events, etc. as the pandemic necessitates working from home and doing
sales online. We have endeavored to increase sales of our services, “Global WiFi for Biz,” monthly charge mobile Wi-Fi router forthe office, “Vision WiMAX,” an ultra-high-speed Wi-Fi router, and “World eSim”, our newly released eSim service that can beused in 120 countries around the world.
Also, those entering Japan must install certain apps on their phone as part of border measures at the airport quarantine station
when entering Japan and we have temporarily been given the registration and confirmation work for the app since April 2021.
As a result of these efforts, both sales and segment profit for the third quarter of the current consolidated cumulative period
exceeded the results for the same period of the previous year and these are the highest quarterly results since the previous third
quarter consolidated accounting period when the effects of COVID-19 became apparent.

GLOBAL WiFi BusinessNet sales
Segment profit or loss (-)

FY2021/3Q Result(million yen)

FY2020/3Q Result(million yen)

Change(million yen)

6,493

5,906

586

9.9

749

-48

797

－

―2―

YoY
(%)

Information and Communications Service Business
For this segment, we are developing services that can contribute to cost reduction, operational efficiency improvement, andremote work support, which are able to be operational during and after the pandemic and where demand can be expected regardlessof the economy.
We are also working on improving stability and profitability by increasing stock and promoting efficient sales activities, using
the strategies of targeting new corporations and venture companies and upselling or cross-selling according to the growth stage ofthe company.
During the third quarter of the current consolidated cumulative period, there was large demand for mobile telecommunications
equipment that support remote environments and we focused on sales. Additionally, in the future, operating costs will temporarily
increase however continuous monthly profits can be expected with our new power service “Vision Denki” mainly aimed at small
and medium-sized enterprises and start-up companies.
As a result, sales were higher than in the same period of the previous year, but segment profit was lower than in the same periodof the previous year.
Information andCommunications Service

FY2021/3Q Result(million yen)

FY2020/3Q Result(million yen)

Change(million yen)

YoY
(%)

Net sales

6,724

6,666

57

0.9

Segment profit

1,024

1,184

-160

-13.5

(2) Explanation of Financial Position(Assets)
Total assets at the end of the third quarter consolidated accounting period are 12,632 million yen (1,319 million yen more than theend of the previous consolidated fiscal term).
Current assets are 10,384 million yen (1,511 million yen more than the end of the previous consolidated fiscal term). The main
reasons for this are that cash and deposits increased by 957 million yen and notes and accounts receivable increased by 673 million
yen.
Fixed assets are 2,247 million yen (192 million yen less than the end of the previous consolidated fiscal term) because investment
and other assets decreased by 231 million yen.
(Liabilities)
Total liabilities at the end of the third quarter consolidated accounting period are 3,129 million yen (586 million more than the endof the previous consolidated fiscal term).
Current liabilities are 3,105 million yen (597 million yen more than the end of the previous consolidated fiscal term). This wasdue to the increase of bills and accounts payable by 103 million yen, payable income taxes and the like by 60 million yen, and reserve
for bonuses by 95 million yen.
Fixed liabilities are 24 million yen (11 million yen less than the end of the previous consolidated fiscal term).
(Net assets)
Total net assets at the end of the third quarter consolidated accounting period are 9,502 million yen (733 million yen more thanthe end of the previous consolidated fiscal term).
The main reason for this was the recording of a net income of 702 million yen attributable to owners of the parent.

(3) Explanation of Consolidated Financial Results Forecast and Other Forward Looking Statements
Although there is great uncertainty about the economic impact of COVID-19 and predicting the future is difficult, the full-year
consolidated financial results forecast for the fiscal year ending December 2021, announced on August 10, 2021, will remainunchanged.
When calculating the full-year consolidated financial results forecast, we predicted that demand in the “GLOBAL WiFi” businesswould partially recover from the fourth quarter, but now we have revised the forecast to delay that period by about six months. On―3―the other hand, we are steadily generating profits by continuing to capture domestic demand for Wi-Fi device rentals. Also, there
are no significant changes in the Information and Communications Service business.
In the third quarter of the current consolidated cumulative period, operating profit exceeded the full-year consolidated financial
results forecast, but during the fourth quarter of the consolidated fiscal period, we plan to make various business investments forthe fiscal year ending December 2022. Taking these investments into comprehensive consideration, we have left the forecast
unchanged.

―4―

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheet(Thousands of yen)
As of December 31, 2020

As of September 30, 2021

AssetsCurrent assets
6,650,318
1,428,842

7,608,099
2,102,102

Products
Supplies

125,303
4,748

166,970
9,154

Other
Allowance for doubtful accounts

724,808

Cash and deposits
Notes and accounts receivable - trade

Total current assets-61,666

572,132-74,132

8,872,354

10,384,327

342,989

382,164

196,721

195,852

Fixed assets
Tangible fixed assets
Intangible fixed assets
Investments and other assets
Other

1,949,361

1,724,294

Allowance for doubtful accounts-48,393-54,344

Total investments and other assets

1,900,967
2,440,679

1,669,949

Total fixed assets

11,313,034

2,247,966
12,632,294

Notes and accounts payable – trade
Income taxes payable

716,837
55,918820,478
116,644

Provision for bonuses
Short-term surrender fees reserve

159,001
49,271

254,999
51,563

Other

1,526,752

1,862,088

Total current liabilities

2,507,781

3,105,773

36,08024,20736,08024,2072,543,862

3,129,981

2,363,785
2,396,243

2,373,469
2,405,927

Treasury stock

6,359,377-2,416,784

7,061,387-2,416,841

Total shareholders’ equity

8,702,621

9,423,942

47,618-721

39,315

Total assets
Liabilities
Current liabilities

Fixed liabilities
Other
Total fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings

Other accumulated comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment-2,549－30,227

Total other accumulated comprehensive income

44,34769,542

Subscription rights to shares

21,344

6,288

Non-controlling interests

859

2,538

8,769,171
11,313,034

9,502,312
12,632,294

Total net assets
Total liabilities and net assets―5―(2) Quarterly Consolidated Statement of Profit or Loss and Comprehensive Income
Quarterly Consolidated Statement of Profit or Loss
Consolidated Cumulative Third Quarter(Thousands of yen)
Nine months ended September 30, Nine months ended September 30,
2020
2021
Net sales
Cost of sales

13,108,091
6,284,066

13,392,003
6,573,667

Gross profit

6,824,025

6,818,335

Selling, general, and administrative expenses

6,765,844

5,804,960

58,1801,013,375

732
1,500

607
1,500

8,320
106,456

24,206
3,804

7,674

6,397

124,684

36,516

Operating profit
Non-operating income
Interest income
Dividends earned
Currency exchange gain
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses

5,249

5

Payment fees
Other

8,643
1,158

4,151
3,600

Total non-operating expenses

15,051

7,756

167,813

1,042,134

Gain on reversal of stock acquisition rights
Gain on sale of fixed assets

－
4,793

14,940649

Gain on sale of investments in securities

3,402

－

Gain on sale of shares of subsidiary

62,867－

Total extraordinary income

71,063

15,590

1,176

2,039

6,469
187,658－
17,335

Office relocation costs
Impairment losses

7,070
1,395,072－－

Total extraordinary losses

1,597,447

19,375

Profit or loss (-) before tax adjustment-1,358,570

1,038,349

Corporate, resident, and business taxes

113,945

138,190

Deferred income tax-244,616

196,469

Ordinary profit
Extraordinary income

Extraordinary losses
Losses on retirement of fixed assets
Losses on lease cancellations
Losses on revaluation of investments in securities

Total income taxes
Quarterly profit or loss (-)
Quarterly profit or loss (-) attributable to non-controllinginterests
Quarterly profit or loss (-) attributable to owners of parent―6―-130,671

334,659-1,227,898

703,690-1,564

1,679-1,226,334

702,010

Quarterly Consolidated Statement of Comprehensive Income
Consolidated Cumulative Third Quarter(Thousands of yen)
Nine months ended September 30, Nine months ended September 30,
2020
2021
Quarterly comprehensive income or loss (-)
Other comprehensive income-1,227,898

703,690

Other valuation difference on hedges
Deferred gains or losses on hedges

47,040-19,251-8,302721

Foreign currency translation reserve-5,25832,777

Total other comprehensive income

22,53025,195

Quarterly comprehensive income-1,205,368

728,885(Breakdown)
Quarterly comprehensive income related to owners of
the parent
Quarterly comprehensive income related to noncontrolling interests-1,203,803

727,205-1,564

1,679―7―

(3) Notes on Quarterly Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Notes on significant changes in shareholders’ equity)
FY2020/3Q Cumulative period (January 1, 2020 – September 30, 2020)
1．Dividends paid
Not applicable.
2．Of the dividends whose recorded date belongs to the third quarter consolidated cumulative period, the effective date of the dividend
is after the last day of the third quarter consolidated accounting period.
Not applicable.
3．Significant fluctuations in shareholders’ equity
Based on the resolution of the Board of Directors’ meeting held on February 21, 2020, the Company repurchased 909,000 sharesof treasury stock through market purchase. As a result, treasury stock increased by 985,674 thousand yen in the third quarter of the
fiscal year and treasury stock amounted to 2,416,784 thousand yen at the end of the third quarter of the fiscal year.
FY2021/3Q Cumulative period (January 1, 2021 - September 30, 2021)
1．Dividends paid
Not applicable.
2．Of the dividends whose recorded date belongs to the third quarter consolidated cumulative period, the effective date of the dividend
is after the last day of the third quarter consolidated accounting period.
Not applicable.
3．Significant fluctuations in shareholders’ equity
Not applicable.

―8―

(Segment Information, etc.)
Segment InformationI.

FY2020/3Q Cumulative period (January 1, 2020 - September 30, 2020)

1.

Information on net sales and profit or loss by reporting segment(Thousands of yen)
Reporting segment
Information andCommunications
Service“GLOBAL
WiFi”

Total

Other
(Note 1)

Adjustments(Note 2)

Total

Quarterly
consolidated
incomestatement(Note 3)

Net sales
Sales to externalcustomers
Intersegment sales
and transfers
Total
Segment profit orloss (-)

5,906,654

6,663,529

12,570,183

537,908

13,108,091－

13,108,091

－

2,999

2,999

555

3,555

-3,555－5,906,654

6,666,528

12,573,183

538,463

13,111,646-3,555

13,108,091-48,462

1,184,885

1,136,422-355,926

780,496-722,316

58,180(Note) 1. The “Other” category is for businesses that are not included in the reporting segment such as ProDrivers, media and catalog
sales businesses.
2. The segment loss adjustment of -722,316 thousand yen is a company-wide expense that is not allocated to each reporting
segment. These are mainly general and administrative expenses that do not belong to the reporting segment.
3. Segment profit is adjusted to the operating profit of the quarterly consolidated income statement.
2.

Information on impairment loss of fixed assets by reporting segment as it relates to matters such as goodwill(Major impairment losses that relate to fixed assets)
The profitability of the “GLOBAL WiFi” and ProDrivers businesses included in the “Other” category have declined and recoveryof the investment amount is no longer expected, therefore the book value of assets (including goodwill) has been reduced to therecoverable amount.
The amount of impairment losses for the consolidated cumulative third quarter is 1,395,072 thousand yen. The recorded segment
losses are 1,209,144 thousand yen for “GLOBAL WiFi” and 185,928 thousand yen for ProDrivers.
(Significant fluctuations in the financial value of goodwill)
The ProDrivers business included in the “Other” category has had its goodwill value decrease by 119,924 thousand yen in thethird quarter of the fiscal year due to the recording of a goodwill impairment loss.

―9―

Ⅱ.

FY2021/3Q Cumulative period (January 1, 2021 - September 30, 2021)

1.

Information on net sales and profit or loss by reporting segment(Thousands of yen)
Reporting segment“GLOBAL
WiFi”

Information andCommunications
Service

Other(Note 1)

Total

Adjustments(Note 2)

Total

Quarterly
consolidated
incomestatement(Note 3)

Net sales
Sales to externalcustomers
Intersegment sales
and transfers
Total
Segment profit orloss (-)

6,493,547

6,723,650

13,217,198

174,805

13,392,003－

13,392,003

－

478

478

6,915

7,393

-7,393－

6,493,547

6,724,128

13,217,676

181,720

13,399,397-7,393

13,392,003

749,348

1,024,461

1,773,809-62,307

1,711,501-698,126

1,013,375(Note) 1. The “Other” category is for businesses that are not included in the reporting segment such as ProDrivers, media and catalog
sales businesses.
2. The segment loss adjustment of -698,126 thousand yen is a company-wide expense that is not allocated to each reporting
segment. These are mainly general and administrative expenses that do not belong to the reporting segment.
3. Segment profit is adjusted to the operating profit of the quarterly consolidated income statement.
2.

Information on impairment loss on fixed assets or goodwill by reporting segment
Not applicable.

―10―