2nd Quarter FY2021

Financial Results

August 10, 2021
Vision Inc.
TSE 1st Section： 9416
1

2Q FY2021 Financial Results

Performance Highlights and2Q FY2021 Results

P.3

FY2021 Financial Forecast
Revision

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.32

2

Performance Highlights
and 2Q FY2021 Results

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

3

Consolidated Profit and Loss Statement(JPYmn, %)FY2021/2Q
ResultFY2020/2Q
ResultChange

8,644

9,630

-985

-10.2

Cost of sales

4,139

4,807

-668

-13.9

Gross profit

4,505

4,822

-317

-6.6

Gross profit margin

52.1

50.1

+2.0

－

SG&A expenses

3,851

4,837

-986

-20.4

SG&A-to-sales ratio

44.5

50.2

-5.7

－

Operating profit or loss (-)

654

-15

+669

－

Operating profit margin

7.6

-0.2

+7.7

－

Recurring profit

680

66

Profit or loss (-) attributableto owners of parent

455-1,352

Items
Sales

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

YoY+614 +922.1+1,808－4

Factors for Change in Operating Profit
Sales“GLOBAL WiFi” Business: Actively acquires various domestic usage needs. In FY2020/1Q, there were inbound and outboundsales. However, sales decreased in 2021 because there were only few travelers both at home and abroad.
Information and Communications Service Business: Sales increase due to changes in business structure (Product sales:
Increase in mobile communication equipment, OA equipment, etc.) (see p.22). Sales of mobile communication equipment (forteleworking, and switching to smartphones, etc.) are strong.

Cost of sales“GLOBAL WiFi” Business: Cost of sales decreases due to decreases in overseas communication costs due to the decrease inoverseas travelers (pay-as-you-go contracts where the fee is charged according to communication usage), depreciation costs forrental assets (Wi-Fi routers), and costs for outsourcing to business partners.

SG&A expenses
Personnel expenses: Decrease in personnel due to sales of ProDrivers business and decrease in the number of new graduates
hired (49 in 2020 → 13 in 2021). Temporary staff contracts terminate following the expiry of term of contract such as those forshipping center staff and airport counter staff due to significant decrease in the number of rentals.
Advertising expenses: Advertising expenses are reduced for websites to respond 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)

-657

-15
+176
-985

654

+152

+668

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

5

Segment Result(JPYmn, %)Segment result

FY2021/2Q
ResultFY2020/2Q
ResultChange

YoY

8,644

9,630

-985

-10.2

“GLOBAL WiFi”

3,865

4,634

-768

-16.6

Information andCommunications Service

4,655

4,520

+134

+3.0

Subtotal

8,520

9,154

-633

-6.9

Others

128

478

-349

-73.1

-4

-2

-1

－

Segment profit or loss (-)

654

-15

+669

－

“GLOBAL WiFi”

380

-20

+401

－

Segment profit margin

9.8

-0.5

+10.3

－

Information andCommunications Service

777

817

-39

-4.8

Segment profit margin

16.7

18.1

-1.4

－

1,158

796

+362

+45.5

-40

-306

+266

－

-463

-504

+41

－

Sales

Adjustments

Subtotal
OthersAdjustments

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.40).

1Q
2Q
3Q
4Q

1Q SEGM EN T P R O F I T O R LO SS (- )

SALES

2Q

17,732

13,505+31.8%

7,882 2,636
2,073+36.8%

4Q

4,462+51.5%

5,084+39.7%-59.0%

1,140

7,278

3,929

245

224

680

146
252

490

FY2016FY2016FY2017FY2018FY2019FY2020

FY2021

494

224

1,274

1,593

1,371
4,109
1,272 3,865
2,329
2,898
1,286
2,226
-16.6%
2,349
1,697
4,075 3,347
3,089
2,505
1,781
1,515
3,022

FY2017430

2,413+30.0%

10,392 3,589

3,301

3Q

+31.3%(JPYmn)

631
724
271

295

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

466

FY2018871

FY2019

-90
326
-347
-27
-42

FY2020

380
262
117

FY2021
7

Information and Communications Service Business
Performance Change
Utilizing the strength of having multiple businesses (products/services) and sales
channels, the business has been favorable by responding flexibly to changes inthe external environment.
Sales increase due to changes in business structure (Product sales: Increase in mobile communication equipment, OA
equipment, etc.).
Segment profit is on the decrease due to a decrease in the unit price of business consignment fee (agency fee)because of the rise in electricity retail prices 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.
(JPYmn)
1Q
1Q
SEGMENT PROFIT
SALES
2Q
2Q
1,520
-1.7%
3Q
3Q
+11.5%
8,955
8,806+15.2%
4Q
4Q+11.9% 1,363
335
+3.9%
+9.4% 7,775 2,115
1,218
188
+2.2%
2,139

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

1,725
1,786

1,172

+14.4%

1,970

1,024
2,330

2,146

1,977

285

4,655
244

287

2,207 2,004 2,297
1,764 1,782 2,009
1,703

1,810

1,818

296
2,515

342

219
+3.0%

2,302

212

2,357

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

264

316

282

367

777

371
350

299

482

517

-4.8%

367

337

296

410

FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

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

8

FY2021
Financial Forecast Revision

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

9

FY2021 Financial Forecast Revision(JPYmn, %)Items

Forecast
after revision

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 Revision(JPYmn, %)Segment Forecast

Forecast
after revision

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

17,468

－

－

－

285

368

1,007

－

－

－

7.3

7.8

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Full FY2021 Financial Forecast Revision
Assumptions of FY2021 forecast and business policies
External environment and business policy (overall)Spread of COVID-19 (including variants) in each country, vaccination status and its effects, impact
on business activities of companies 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 with
COVID-19, we will aggressively develop new businesses and new services (including those for
improved convenience) in the post-corona world, and carry out business activities to achieve
growth that exceeds the growth potential before the spread of COVID-19.

“GLOBAL WiFi” Business
Reflect steady domestic demand and increased demand for “GLOBAL WiFi for Biz.”
Reflects the assumption of FY2021 forecast as announced on February 15, 2021, “Overseas
travelers (outbound, inbound): After October 2021, it is expected to recover by about 25%compared to that in 2019.” On the other hand, the continuation of temporary contract work during
the COVID-19 pandemic is still uncertain, and has been excluded from the 4Q forecast.

Information and Communications Service Business
Reflect the current strong situation and the increase in in-house services (monthly fee).
Reflect the impact on FY2021 business performance following the start offering “Vision Denki”(sales: -JPY26mn, operating profit: -JPY166mn).
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, which isscheduled to begin in this September, will be decided after careful
discussions at the Board of Directors’ meeting. We will proceed with theprescribed 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”
- Competitive Advantage When Travel Market Recovered -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, Vietnam, South Korea, 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
the event of disasters, and customer base.
Usage needs for:Business (teleworking, online training and meetings), online classes, hospitalization, moving, combined use withhome internet, etc.
Convenience that you can rent it in various places for the required period (on a daily basis) is popular with the users
in various scenes.
Increase use for hospitalization and moving (temporary use until fixed line opening) by strengthening the promotion.

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
- Competitive Advantage When Travel Market Recovered -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

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.

19

“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.

20

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.
(JPYmn)(JPYmn)COST

SEGMENT PROFIT OR LOSS (-)

1,156

1,093

FY2020
FY2021

225
178

777

703

672
584

548 542439

687

102 99
67

545
29

415

85

12

10
-19

Jan.

Jan.

Feb.

Feb.

Mar.

Mar.

Apr.

Apr.

May

May

Jun.

Jun.

-90

-0

-17 -3

-2

-88
-107

2020 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 2021
SG&A expenses

591

244

572

243

439

264

328

278

340

242

314

260

Cost of sales

292

176

313

158

209

263

203

373

226

404

223

400

210

19

271

13

129

20

10

20

17

56

7

26

Overseas
telecom cost

-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.
21
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, the business has been favorable by responding flexibly to changes in theexternal environment.
In the Eco solution business, recovers by shifting personnel to the Mobile communication business, etc. due to adecrease in the unit price of business consignment fee (agency fee) because of the temporary rise in electricity
retail prices.
Sales of mobile communication equipment (for teleworking, and switching to smartphones, etc.) are strong.

2Q FY2020 Cumulative
0.5%
2.7%
15.2%
12.2%
10.7%

2Q 2021 Cumulative
1.0%
3.1%
13.5%
7.9%
11.5%

JPY
2,382mn

28.2%

Fixed-line communication

Internet media

JPY
2,503mn

19.4%

11.2%

Mobile communication

Eco solution

25.4%

28.1%
9.5%
Broadband

Construction related

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.
22

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.
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

Sales

WelfareApproval

GoodmorningCallsystemSchedule

Efficiency

WEB
meeting

Schedule

Efficiency

GPS

Engagement

Chat

AttendanceEntering
andleaving

Payroll
prepayment

SFA
Employeelist
Evaluation

Human
resources

Hi, ...
Security

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

23

Sales of In-house Services (Monthly Fee) are Strong- Provide Products/Services Meeting the Customers 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.

24

The Launch of Our New Power Service “Vision Denki“- Provide Products/Services Meeting the Customers 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.26) 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.

25

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-)

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

26

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

FY2024FY202527

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.
830
FY2021/2Q cumulative is JPY480mn, which is progressing steadily.

730
530

In-house services(monthly fee)
Stock earnings

550

590

620
480

FY2021/2Q

FY2015FY2016FY2017FY2018FY2019FY2020

0.5
50

0.8
80

130
1.3

1.9
190

330
3.3

470
4.7

300
3.0

4.7
470

4.6
460

4.6
460

4.2
420

4.0
400

3.6
360

1.7
170

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

28

Information and Communications Service BusinessBusiness Model“Vision Hybrid Synergy model”

Sales improvement

Existing users
needs
Up selling Cost reduction
Cross sellingneeds
Efficiency(Pull)The business model built for 26 years since its
foundation has been expanded into allbusinesses such as “GLOBAL WiFi” business.

Corporate sales strength (structure, know-how,
CLT
Cross
selling
Improve customer
various sales channels)
Up selling

Apparent needs that
customers are aware ofUser relationship

Develop newVideo.com websites,customers Landing
pages (LP)marketing(Pull)
SNS&emailGlobalmarketing

DX promotion

DX promotion
New users

Subscription
promotion

Potential needs that
customers areunaware of

Existing users

Management
Strategy Promote productivity

DX promotion

improvement

Analyze customer
Improve gross profit,
attributes
Strategy

Big data
Targetingmarketing

In-house SaaS
promotion

DX promotion

Membershipstrategyplanninggross profit margin
and absolute amount

Strategic investment Improve(M&A, alliance)
procurement

Sales

Sales improvement
needs

Cost reductionneeds
Efficiency
improvement
needs
Communication
activation needs

Multi-job
promotion

Assetsmarketingactivation needs

satisfaction

Enhanceescalation

Marketing

improvement
Communication needs

Improveaverage value(escalation, visits,
acquisitions)

DX promotion
Enhance sales,
Enhancetelemarketing
partner, FC
Sales contact
centerDevelop new customers(Push)

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

Existing users
Up selling
Cross selling(Push)

Definite targeting, timing
sales, Life Time Value
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.

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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 business use (including leasing) and the acquisition
and installation of equipment such as dome-shaped tents: approx. JPY1,200mn
Selection of land, equipment, and service, etc. is progressing smoothly toward the launch of thebusiness.
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

Sustainability including
ESG Factors

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32

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.

33

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.

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34

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 June 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
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35

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.

36

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.

37

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.

38

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.

39

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 June 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.

40

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.

41

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.

42