FY2018

Financial Results

February 8, 2019
Vision Inc.
(1st Section of the Tokyo Stock Exchange, code： 9416)

FY2018 Financial Results• Performance Highlights and FY2018 Actual Results• FY2019 Outlook of Financial Results• Growth Strategy• APPENDIX
–
–
–
–
–
–

Group Structure
Performance Data
“GLOBAL WiFi” Business Market Size
“GLOBAL WiFi” Business Customer Attributes(Corporate・Individual) / (New・Repeat) / (By Gender / Age・Past Cumulative Total)
Information and Communications Service Business Market Size
Overview of Stock Options with Charge Issuance• Business Summary

Copyright(C) 2019 VISION INC. All Rights Reserved.

2

Performance Highlights and FY2018 Actual Results

Copyright(C) 2019 VISION INC. All Rights Reserved.

3

FY2018 Overview of Financial Results (Cons.)
New record for sales and profits.
(JPYmn, %)FY2018 Result

Account title

AmountChangeComposition
ratio

AmountPercentage

21,503100.0+3,948+22.5

17,554100.0+2,711+18.3

12,65058.8+2,489+24.5

10,16057.9+1,538

+17.8

2,484

11.6

+695

+38.9

1,788

10.2

+498

+38.6

2,499

11.6

+704

+39.3

FY2017 Result

1,795

10.2

+496

+38.3

Net income attributable toparent company shareholders

1,529

7.1

+320

+26.5

FY2017 Result

1,208

6.9

+394

+48.5

Sales
FY2017 Result

Gross profit
FY2017 Result

Operating profit
FY2017 Result

Recurring profit

Copyright(C) 2019 VISION INC. All Rights Reserved.

4

Reasons for Increase in Operating Profit
Operating profit margin 11.6%(+1.4% points YoY)
(JPYmn)––+1,459Both travelers from Japan to overseas andforeign visitors to Japan are the largest ever.
“GLOBAL WiFi” Business ：With the support of stable repeat use mainly bycorporate users, the rental number has greatly
increased due to new acquisitions.
Promote to improve cost efficiency and reduce cost
continuously, and further improve profitability.

Gross profit increase
from sales growth
Cost ratio -0.9% points•

Gross profit+JPY2,489mn+3,948 (+24.5%)+1,793

SG&A-to-sales
ratio-0.4% points

•

•

1,788
Operatingprofitmargin10.2％

FY20172,484

Operating profit+JPY695mn(+38.9%)

Sales

Cost

Operatingprofitmargin11.6％

SG&A

FY2018–Reduce data telecommunication cost by volume
discount
Promote to utilize CLOUD WiFi
– Operate Wi-Fi routers and data-line
efficiently– Reduce shipping process– Improve efficiency of monitoring
telecommunication status, etc.
Improve efficiency of labor costs– Improve efficiency for responding inquiries(AI/RPA utilization FAQ, chatbot, etc.)– Improve efficiency to deliver devices(“GLOBAL WiFi for Biz” for corporate
customers, add automatic pick-up locker“SmartPickup”, etc.)

Information and Communications Service
Business：
Increase sales and profits by up/cross selling
strategy, enhancing profitable services.

expenses
Copyright(C) 2019 VISION INC. All Rights Reserved.

5

Segment Actual Result•“GLOBAL WiFi” Business： Sales +30.0%, and Segment profit +51.5%.

•

Information and Communications Service Business： Sales +9.4%, and Segment profit +3.9%.
(JPYmn, %)“GLOBAL WiFi”

AmountAmountChangeAmountPercentage

10,392+3,113

+30.0

7,775

7,104

+670

+9.4

21,281

17,496+3,784

+21.6

231

58

+172

+295.8

-8

－

-8

－

Total (Cons.)

21,503

17,554+3,948+22.5“GLOBAL WiFi”

2,413

1,593

+820

+51.5

17.9

15.3

+2.5

－

1,218

1,172

+46

+3.9

15.7

16.5

-0.8

－

Subtotal

3,632

2,765

+867

+31.4

Others

-194

-102

-91

-88.9

Adjustment amount

-954

-874

-79

-9.1

2,484

1,788

+695

+38.9

Subtotal
OthersAdjustment amount

Profit margin

Information andCommunications Service
Segment
profit

FY2017
Result13,505

Information andCommunications Service
Sales

FY2018ResultProfit margin

Total (Cons.)

Copyright(C) 2019 VISION INC. All Rights Reserved.

6

“GLOBAL WiFi” BusinessTransition of Performance
Both travelers from Japan to overseas and foreign travelers visiting Japan are thelargest ever. Steady performance, and continue to increase in sales and profit.

–

Due to the effect of various campaigns, significantly increase in acquisition of FIT fromJapan to overseas.
Capture corporate demand and inbound demand steadily, too.

–

Improve both cost efficiency and SG&A expenses efficiency continuously.

–

1Q
2Q
3Q
4Q

SALES
13,505+30.0%

10,392+31.8%+30.6%

6,035
1,602

7,882
2,073

1,308

FY2015FY20162,413+51.5%

495

1,593+39.7%

3,929

1,140

3,022

+92.2%

2,898

1,697
1,781

(JPYmn)

3,589

2,226

1,297

SEGMENT PROFIT

2,636

2,329

1,826

1Q
2Q
3Q
4Q

245

224

769

631
448

593
114

494

271

2,505

3,089

256
60
162

146
252

466

FY2017FY2018FY2015FY2016FY2017701

FY2018(Attention) Regarding the quarterly results in FY2015, year-on-year ratio is for reference, because we do not prepare for the quarterly financial statements.
Copyright(C) 2019 VISION INC. All Rights Reserved.

7

Information and Communications Service BusinessTransition of Performance
Increase in sales and profits. Continue stable growth.
–

Continue to perform well due to acquiring our main targets (newly established companies, venturecompanies).
In LED sales (office automation equipment service business), change from sold-out to rental modelaccording to customers‘ needs. (Equipment purchase costs are first-out recorded due to this change.
Change to depreciation for 3 years as rental assets from FY2019.)–

Accumulate continuous dealings by CRM (stock model).

–•Accumulate by up/cross selling strategy.

1Q
2Q
3Q
4Q

SALES
+9.4% 7,775+7.9%

6,948 +2.2%7,104

6,440

1,673
1,601

1,730

1,725

1,970

SEGMENT PROFIT

1,218
1,172+3.9%+14.4%
212
1,024
285
+13.4%
903
219

214
1,749

1,977

1,786

244

287

(JPYmn)

371

221

1,764

1,782

2,009

1,536

1,703

1,810

1,818

FY2015FY2016FY2017FY2018

1,629

1Q
2Q
3Q
4Q

296

316

337

264

282

296

FY2016FY2017FY2018269
198
FY2015(Attention) Regarding the quarterly results in FY2015, year-on-year ratio is for reference, because we do not prepare for the quarterly financial statements.
Copyright(C) 2019 VISION INC. All Rights Reserved.

8

Look back on FY2018
Promote efforts to realize “Challenge to evolution - Chapter 2 -”.

•––Differentiate by expanding business and monetizing peripheral business.
Realize to lead the industry overwhelmingly (productivity, market share, profit).

Segment

Topic

Selfassessment

・Increase rental number for both repeat use and new acquisition → strengthen(Expand sales of GLOBAL WiFi for Biz ＝ Strengthen to approach to corporate“GLOBAL WiFi”
Businesscustomers, cooperate with partners (travel agencies, airlines, etc.))
・Reduce data telecommunication cost, operating costs → strengthen (Develop
more aggressively including automation)○

・Improve convenience by utilizing AI, RPA, IoT → continue
・Continue updating record highs for both sales and profits → continue
・Steady performance in “Haruene Denki” subscription agency (cross selling) →Information andCommunications
Service Business

continue
・Increase in both sales and profit, educating new employees → continue
・Develop and sell in-house services → continue○

・High productivity by organizational culture, business model → strengthen

Other・Launch Hired car sharing service business (ProDrivers) → early monetization
・Explore and develop new business → continue

Copyright(C) 2019 VISION INC. All Rights Reserved.

△
9

FY2019 Outlook of Financial Results

Copyright(C) 2019 VISION INC. All Rights Reserved.

10

FY2019 Forecast of Financial Results
Sales: +13.8％ YoY, and Operating profit: +21.2％ YoY.
(JPYmn, %)FY2019 Forecast

Account title

AmountChangeComposition
ratio

AmountPercentage

24,470100.0+2,967+13.8

21,503100.0+3,948+22.5

14,64059.8+1,990+15.7

12,65058.8+2,489

+24.5

3,012

12.3

+527

+21.2

2,484

11.6

+695

+38.9

3,013

12.3

+514

+20.6

FY2018 Result

2,499

11.6

+704

+39.3

Net income attributable toparent company shareholders

2,003

8.2

+474

+31.0

FY2018 Result

1,529

7.1

+320

+26.5

Sales
FY2018 Result

Gross profit
FY2018 Result

Operating profit
FY2018 Result

Recurring profit

Copyright(C) 2019 VISION INC. All Rights Reserved.

11

Reasons for Increase in Operating Profit(FY2018 vs FY2019)(JPYmn)+976

Gross profit increase
from sales growth
Cost ratio -1.0% points

Gross profit+JPY1,990mn+2,967 (+15.7%)+1,462

Operating profit margin 12.3%(+0.8% points YoY)–

“GLOBAL WiFi” Business ：Continually improve convenience andproductivity• Approach to corporate customers––

SG&A-to-sales
ratio+0.2% points•••

Expand sales of GLOBAL WiFi for Biz
Strengthen cooperation with partners(travel agencies, airlines, etc.), expand
sales channels

Reduce data-line procurement cost
Promote to utilize CLOUD WiFi
Reduce operating costs, etc.
Work automatically by AI/RPA
utilization FAQ, chatbot, etc.
Improve efficiency to deliver devices(“GLOBAL WiFi for Biz”, add automatic
pick-up locker “SmartPickup”, etc.)
–

3,012

2,484
Operating profit+JPY527mn(+21.2%)

Operatingprofitmargin11.6％

FY2018

Sales

Cost

Operatingprofitmargin12.3％

SG&A

FY2019expenses

Forecast–

Information and Communications
Service Business ：Increase sales and profits by up/cross selling
strategy, enhancing profitable services.

–

Other ：
Build Hired car sharing service business(ProDrivers), invest in advance (personnel
expenses etc.), make efforts to earlymonetization

Copyright(C) 2019 VISION INC. All Rights Reserved.

12

Segment Forecast•“GLOBAL WiFi” Business： Sales +15.3%, and Segment profit +10.3%.

•

Information and Communications Service Business： Sales +3.4%, and Segment
profit +16.7%.
(JPYmn, %)Sales

FY2018ResultAmountAmountChangeAmountPercentage“GLOBAL WiFi”

15,57913,505+2,073+15.3

Information andCommunications Service

8,036

7,775

+261

+3.4

23,61521,281+2,334

+11.0

855

231

+624

+270.2－-8+8+100.0Total (Cons.)

24,47021,503+2,967+13.8“GLOBAL WiFi”

2,662

2,413

+248

+10.3

Information andCommunications Service

1,422

1,218

+203

+16.7

Subtotal

4,085

3,632

+452

+12.4

62

-194

+257

+132.4

Adjustment amount-1,135

-954

-181

-19.0

Total (Cons.)

3,012

2,484

+527

+21.2

Subtotal
OthersAdjustment amount

Segment
profit

FY2019Forecast

OthersCopyright(C) 2019 VISION INC. All Rights Reserved.

13

Outlook for the Full Year (Quarterly Transition)(JPYmn, %)１Ｑ

FY2016FY2017FY2018

３Ｑ

４Ｑ

FY

Sales

3,487

3,465

4,083

3,807

14,843Composition ratio (vs. FY)

23.5

23.3

27.5

25.7

－

Operating profit

313

245

517

214

1,290

Composition ratio (vs. FY)

24.3

19.0

40.1

16.6

－

Operating profit margin

9.0

7.1

12.7

5.6

8.7

Sales

4,326

4,024

4,827

4,377

17,554Composition ratio (vs. FY)

24.6

22.9

27.5

24.9

－

Operating profit

513

336

688

249

1,788

Composition ratio (vs. FY)

28.7

18.8

38.5

13.9

－

Operating profit margin

11.9

8.4

14.3

5.7

10.2

Sales

4,922

4,933

5,961

5,686

21,503Composition ratio (vs. FY)

22.9

22.9

27.7

26.4

－

Operating profit

736

499

900

347

2,484

Composition ratio (vs. FY)

29.6

20.1

36.2

14.0

－

Operating profit margin

15.0

10.1

15.1

6.1

11.6

11,614

12,85524,470

47.5

52.5

－

1,437

1,574

3,012

Composition ratio (vs. FY)

47.7

52.3

－

Operating profit margin

12.4

12.2

12.3

Sales

FY2019２Ｑ

Composition ratio (vs. FY)
Operating profit

Copyright(C) 2019 VISION INC. All Rights Reserved.

14

Promote to Utilize “CLOUD WiFi”•

A Wi-Fi router equipped with nextgeneration communication technology thatmanages SIM on the cloud.
–
–

•

•

–

No need to insert/change SIM physically.
Telecommunication carriers all over the world canbe allocated with one device.

––

Increase to approx. 88% of shipping Wi-Fi routers.
(Dec. 2017：approx. 51％ ⇒ Dec. 2018：approx. 88％)
※Differentiate by utilizing the SIM contracted by us.
※Some countries can not respond depending on
telecommunication carriers. Around 90% is the upper limit.

Benefits：•

Reduce telecommunication cost ratio (Improveusage efficiency of data- telecommunication)
Labor saving of shipping operations (Reduce
SG&A expenses)
Utilization service/new method (Improve
profit)Utilization service/new method：–

Offer “GLOBAL WiFi for Biz”••

You can use it
immediately
after turning on
the power!

Store SIMs allover the worldon the cloud––

Keep it at the customer‘s office (No need forrental arrangement every travel)
Domestic (Japan) internet connection is free
up to 3GB/month (available on a daily basis)

Integrated into overseas travel products bytravel agencies
Expand inventory/available areas at each
airport counter•

Minimize opportunity losses–

Copyright(C) 2019 VISION INC. All Rights Reserved.

Service provision system for customers on
departure day (Increase in the rental number)

15

GLOBAL WiFi for Biz••

If you have GLOBAL WiFi forBiz...

Promote of continuous use by corporate users (Improve convenience, satisfaction)
Reduce operating costs

M1: Oops!!
M2: What's wrong?
M1: I've forgot to apply for Wi-Fi...

①

F: Your company has not introduced “Wi-Fi kept
at the office” yet?
M1: Wi-Fi kept at the office!?

②

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

③

M1: It's a waste of expenses when not in use.
M2: We don't go overseas on business trips
frequently.
F: However, the fee is a fixed-rate system thatcosts only on the day you use it.
M1: Oh, is it!?

④

M1: But... I don’t like a slow data-line.
F: Don’t worry! It supports multiple carriers’ SIM
for one country and automatically selects andconnects the line with the best telecommunication
environment.

F: Since you can pay by invoice, no need to be
reimbursed expenses.
M2: Wow!
M1: Then we can reduce the user’s
reimbursement procedure and the approver’s
intermediate cost.

⑦

M1: Certainly attractive though... if we introduce
it, I have to persuade my boss...
F: GLOBAL WiFi, no need to purchase a device.
Since it can also issue actual usage details, it'ssafe as a company.

⑧⑤

F: In addition, with the optional Japan fixed-rate
plan, domestic (Japan) internet connection is free
up to 3GB/month.
M1: In other words, even when we don’t gooverseas on business trips, we can easily use it asa mobile Wi-Fi router in Japan.

⑥

F: And the basic charge is JPY1,970/month!

Copyright(C) 2019 VISION INC. All Rights Reserved. 16⑨

Smart Strategy
Automatic pick-up locker

Self check-in KIOSK terminal(Multi-language available,
settlement function)

Immediate customer
identification counter(QR code reception counter)

Reception

SmartPickup

SmartCheck

SmartEntry

Shorten waiting time

No congestion

Improve CS

Standby

Improve convenience

Increase sales

Evolve to more convenient, comfortable, relieved counters that meet each customer’s needs,
responding to the increase in the number of rental (delivery) and optional services (compensation
service, accessory etc.), for Japanese traveling overseas and foreign travelers visiting Japan.

Copyright(C) 2019 VISION INC. All Rights Reserved.

17

Airport Counter and SmartPickup•••

15 airport counters in Japan, and 18 automatic pick-up lockers are installed at 5 airports.
Enhance users’ touch points such as new counter openings, relocation, and expansion (As of
December 2017: 8 ⇒ December 2018: 18).
The service level is optimized according to customers.
⁃ Eliminate waiting time thoroughly for customers who do not need explanation (such as repeater).
⁃ Airport staff responds to customers who need explanation.
★”SmartPickup” (automatic pick-up locker) installed
Asahikawa Airport
New Chitose Airport
Niigata Airport
Sendai Airport
Komatsu Airport
KABUKI-JO (Shinjuku)
Itami Airport ★

SHIBUYA “CHIKAMICHI”

Kansai Airport ★

Haneda Airport ★
Narita Airport ★

Fukuoka Airport

Shizuoka Airport

Miyazaki Airport

Chubu Airport ★

Kagoshima Airport

Naha Airport(Return BOX)

Copyright(C) 2019 VISION INC. All Rights Reserved.

18

Online Order System just before Departure(Smart Strategy × CLOUD WiFi × Database）

CLOUD WiFi

Smart Strategy

Collaboration

Database

Collaboration

Collaborate with each effort to further improve convenience

Acquire customers on departure day that we have missed so far⇒ Increase number of users※Respond to WEB application in front of the airport counter instantly incollaboration with the database.

Copyright(C) 2019 VISION INC. All Rights Reserved.

19

Example of Efforts （GO BEYOND.）

Only those who have a will and who cross the walls lightly can clear the
future.
We offer various services of “GLOBAL WiFi” from that thought.
Therefore, we support individuals and organizations that are crossing theborders, exceeding restrictions, and aiming for new conviction and growth in
the activities they are working on.
For the “GO-BEYONDER” certified by us, we support their activities throughthe provision of “GLOBAL WiFi”.
“GO-BEYONDER”〇Cumulative number of GO-BEYONDER, certified by December 2018 .... 200〇Athletes, artists, entertainers, racers, adventurers, photographers, activity
organizations, etc.
CONCEPT https://global-wifi.com/index.html
CONCEPT MOVIE https://global-wifi.com/movie.html
Copyright(C) 2019 VISION INC. All Rights Reserved.

20

Example of Efforts(In-Flight Commercial on ANA International Flights)

Broadcast the commercial of “GLOBAL WiFi”, a mobile Wi-Fi router rental service for overseas travelers,and “WiFi rental.com”, a mobile Wi-Fi router rental service in Japan, on the ANA international flight.
CM Story https://www.youtube.com/watch?v=rO5QAqx9BNA
Copyright(C) 2019 VISION INC. All Rights Reserved.

21

Progress in Information and Communications
Service Business (Detailed Topics)○Enhance distribution channel•「BIMAKE （Vision Business Market）」
https://vision-bizmarket.com/– “Comprehensive support website forcompanies” that fully supports allcompanies’ business.
– For startup, small and medium-sized,
and venture companies. Also attract
customers who are preparing to establish
company.
– Offer our services and tie-up partner’s
products with useful information.

○Sell in-house developed service(Enhance products, services, and businessmodels)•｢VWS WEB CALL SYSTEM」
https://vws-biz.com/web-call-system/– Sell the cloud-type service developed inhouse by introducing our know-how.
– There is superiority in function to increase theoperation efficiency of personnel, andfunction to understand each sales situation.
– Less fixed costs and available from small
companies.
– Target service of “subsidy to introduce IT”.
– Continue to introduce high-demand services.

Copyright(C) 2019 VISION INC. All Rights Reserved.

22

Travel Related Service Platform
Use existing customer foundation and offer useful information/service to solve
problems during overseas travel.

Overseas
travelers

Japan total approx. 3.6mn people/25.22mn nights
Outbound (approx. 2.82mn people/19.76mn nights) + Inbound (approx.
0.78mn people/5.45mn nights)＊FY2018 actual results, our research

Advertising
revenue
improvement
GuidebookUseful services

Useful information (Media)
Promotional
materials

Insurance Coupons

Video

Facility・Counter

Shop &
Duty-freeshop

Hotel &
Minpaku

ARPU
improvement

SNS

Rental service of wearable
translation device

Email

Tours

Rentalcars

Pick-up service etc.

TouristGourmetattractions

Payment platform

Guide customers to allied partners
Copyright(C) 2019 VISION INC. All Rights Reserved.

Golf
courses《Reference》
FY2017 actual results:
approx. 2.69mn people/18.83mn nights
・Outbound... approx. 2.08mn people/14.56mn nights
・Inbound… approx. 0.61mn people/4.27mn nights
23

Travel Related Service Platform (Media)•

Inbound advertising media
Web
media

Video

Guidebook

Deliver
directly
at airport

Facility

・Deliver directly toeveryone
・Deliver at our partners‘
base・Available for 3 languages
・Issue 3 guidebook a year
・Issue 300,000 copies ayear

・SNS video posting/uploadingAfter immigration
Airport counter

Before travel

Move Tourism Stay

Tourist information
center・Shinjuku Kabuki-cho
area・Activity, event

Tourism

Move

Departure

Arrival
Email

Email
・Customers before
travel・Customers during
travel・Customers who
used in the past

Before immigration
Airport counter

Deliver
directly
at airport

Promotional
materials
・Correspond toeach airport
・Also correspond tonationality
・Able to choose thetimingCopyright(C) 2019 VISION INC. All Rights Reserved.

Deliver
directly
at airport

Sampling
・Correspond toeach airport
・Also correspondto nationality
・Able to choose
the timing

24

ProDrivers (Travel Related Service Platform Expansion)
Utilization (Utilize customer foundation)
 Hired car sharing service business Pick-up service to make every move comfortable in both business and daily life, such as airport

transfer, executive pick-up, etc.
Utilize the customer foundation of “GLOBAL WiFi” Business (including foreign travelers visiting Japan).
⁃Target customers of Information and Communications Service Business and new customers, too.

⁃Domestic：Start from Tokyo. Plan to develop in major cities, including partner development.

⁃

Overseas：“SmartRyde” (operated by DLGB Inc., a capital and business alliance partner)

Move with big baggage.
Available in increments of 2 hours.
Available for up to 9 people(economical by splitting the cost)
Copyright(C) 2019 VISION INC. All Rights Reserved.

25

Growth Strategy

Copyright(C) 2019 VISION INC. All Rights Reserved.

26

Medium-Term Growth Image
Steadily promote the growth strategies.
• “GLOBAL WiFi” Business
Customer Foundation– Expansion (Market development = Growth at each stage, global expansion)– Stability (Improve profitability)– Utilization (Business development = Travel related service platform)•

Information and Communications Service Business– Enhance channel.
– Enhance products, services, and business models.

Travel related
service platform“GLOBAL WiFi”
Travel related
service platform【3rd stage】 Overseas⇒Overseas【2nd stage】 Inbound【1st stage】 OutboundInformation and Communications
ServiceEnhance channel
Enhance product, service, business model
Copyright(C) 2019 VISION INC. All Rights Reserved.

27

“GLOBAL WiFi” BusinessBusiness Model, Competitive Advantage

Maximum cost benefits -８９．９％

Less Expensive•
Fixed-rate

Available in over 200 countries and regions worldwide, leading the industry in thenumberHigh-speed communications in partnership with telecom carriers around the world•

Comfortable •Secure, and 47 support bases available 24 hours a day, 365 days a year, aroundthe world
Number of airport counter is the industry’s largest class•

Corporate Sales•

Number of users is the largest in the industry

Datacommunication
service

Payment

Direct website
Apps
Affiliates
Corporate sales
Partners
Airport counters

Shipping
ReturnEnd Users

Worldwide
telecommunications
companies

Customer •Uptake ability of corporate needs

Rental fees

Copyright(C) 2019 VISION INC. All Rights Reserved.

Travelers' Choice 2014/2016
1st place in the mobile
Wi-Fi router category

Payment

Settlement service
providers

Safe / Secure•
Counter

JPY300/day～ * Japanese cellphone companies' fixed-rate discount ratio

Vision Group

Areas

–

28

Compare How to Connect the Internet Abroad•••“Global WiFi” “NINJA WiFi” is the best way due to safe, secure, comfortable, andless expensive.
Benefits not only for travelers but also for business use.
The convenience of renting Wi-Fi router for trip has been recognized even in areas
other than Japan, mainly in Asia.
* Created by our research and standard

How to Connect

Price

Area

Speed

Management

Security

○

○

○

○

○

Based on the best quality network in each local area. Low price, secure, safe,
available to connect anywhere. Easy to set-up, easy to manage.

Roaming(Telecom carriers’
fixed-rate)

Prepaid SIM(Purchaseoverseas)

Free Wi-Fi Spot

(Hotel, Café, etc.)

×

△

△

○

○

Problem with price and quality.
(From JPY1,980 to JPY2,980/day. Maybe charged even more.)

△

△

○

×

○

Need to know how to manage. (Set-up, activation, recharge, etc.)

○

×

△

○

×

Problem with security (hacking), coverage (not available when moving).
Copyright(C) 2019 VISION INC. All Rights Reserved.

29

“GLOBAL WiFi” BusinessProfit Structure

Account title

Summary①Rental price per day × number of usage days
※Average：JPY1,000/day

Sales

Average usage days：7 days

※Options such as insurance, mobile battery etc.

②Monthly charge (JPY1,970) + data telecommunication fee (plan) ×
number of usage days
・Usage of data telecommunication (telecom carriers all over the world)

Cost of sales

・Devices (mobile Wi-Fi routers)※Recorded as rental asset (recorded by depreciation for 2 years)

・Outsourcing (commission paid to sales agents) etc.
・Personnel expenses
・Advertising expense

SG&A expenses

・Operation and rent of shipping center, airport counter, customer center
etc.
・Other SG&A expenses etc.
Copyright(C) 2019 VISION INC. All Rights Reserved.

30

“GLOBAL WiFi” Business

Growth Story

Our Wi-Fi rental service penetration ration (Japan) ※14.9%

Overseas use share (Outbound: Japan ⇒ Overseas)
Domestic use share (Inbound: Overseas ⇒ Japan + Japanese)
Share in the Japanese market (Out + In)

0.4%
0.3%
FY2012

1.4%

2.0%
0.0%

FY20130.2%

4.4%

FY2014

8.3%

6.4%

2.7%

3.5%

0.7%

1.2%
FY2015

11.7%

4.7%

5.8%

2.1%

2.2%

FY2016FY20177.1%

2.5%
FY20182,231,775
64,744

Rental number (Full year Transaction)

407,517

Overseas business (Except for use in Japan, Overseas ⇒ Overseas)

1,650,969

Domestic use (Inbound: Overseas ⇒ Japan + Japanese)

62,615

Overseas use (Outbound: Japan ⇒ Overseas)

285,708

1,144,045
66,556

783,050
516,199
241,737
55,507

10,520
7,511

6,236
244
49,027

223,706

FY2012FY2013

FY2014※ Created from Japan Tourism Agency material by us

1,759,514

43,66990,906

17,73435,512462,953

190,665

1,302,646
886,824

648,475

FY2015FY2016FY2017

Copyright(C) 2019 VISION INC. All Rights Reserved.

FY201831

＜Reference＞ “GLOBAL WiFi” Business
Market Size•

Inbound (Overseas travelers to Japan)：–––Over 31.19mn people for a year.
* FY2018 actual result
Potential market size: approx. JPY218.3bn ※Government’s target:
•
•

•

•

Overseas travelers in the world (Number ofinternational tourist arrivals)：––

40mn people in 2020
60mn people in 2030

Global travelers from overseas to overseas
are the huge market of 1.3bn people scale.
Potential market size： approx. JPY9tn andmore ※Outbound (Japan → Overseas)：––(mn people)(‘000 people)

Remained at around 17mn people.
Potential market size:
approx. JPY132.6bn ※Government’s
targetInbound
Outbound

1,800

60,000

Forecast
40,00031,191
28,690

1,322

24,03919,737
13,413
10,363
8,358

8,611
6,218

1,235
1,184

Approx. 17mn-18mn
people(slightly increasing trend)

1,087
949

18,954
16,63716,99418,49017,47216,90316,21217,11617,889

2010 2011 2012 2013 2014 2015 2016 2017 2018

2020

1,039

19,00018,500

～

993

1,133

～

2030

2010 2011 2012 2013 2014 2015 2016 2017

～

2030

Create from JNTO materials, March 2016 “Advisory Council on Tourism Nation Promotion”, Heisei29 edition tourism white paper, and the materials released by UNWTO※Estimate from Average Revenue Per User of our customer

Copyright(C) 2019 VISION INC. All Rights Reserved.

32

Information and Communications Service Business
Growth Strategy (Competitive Advantage)•
StartupCompanies

Have new dealings with one company in six to seven companies※that are newly established within the year in Japan–

National corporate registration number ... 118,811 （2017)
Source： Ministry of Justice

ＷＥＢ Strategy•

Customer
Loyalty•

Ability to attract customers due to our own WEB marketing(internet media strategy)
CRM (customer relations/continuous dealings) strategy, our own
know-how––

Maximization of continued revenue ＝ Stock business
Up/Cross Selling which is high productivity

U.com
Telephone Line Cellphone
Arrangements Support

OfficeAutomation

Website Support

Security

Electric Power※Total number of companies established within 6 months (including sole proprietors), starting
business with us (our research)
The number of acquisitions will fluctuate due to fluctuations in handling services and products.
Copyright(C) 2019 VISION INC. All Rights Reserved.

33

Information and Communications Service BusinessProfit Structure
Account
title

Sales

Summary
Telephone line arrangements, cellphone,electric power etc.

Office automation (multifunction printer,business phone), website support, security

・Business brokerage fee (commission)・Sales revenue

・Continuation fee (according to customers’ usage※Fee from leasing company and credit

situation)company※Fee from telecom carriers and primary agents・Maintenance fee※Fee from the manufacturers and factoring(website maintenance)

Cost ofsales

・Devices (cellphones)・Devices (office equipment, security)※No cost of sales for telephone line arrangements※Payment to the manufacturers

and electric power・Outsourcing (commission paid to agents) etc.

※Payment to telecom carriers and primary agents・Outsourcing (commission paid to agents) etc.
・Personnel expenses

SG&A
expenses・Advertising expense (website etc.)
・Rent of call center etc.

・Other SG&A expenses etc.
Copyright(C) 2019 VISION INC. All Rights Reserved.

34

Information and Communications Service Business
Market Size•

Establishment registration number (total)：118,811–––

Approx. 110 thousand companies annually.
(Continued increase trend due to aggressive
establishment and corporate support by thegovernment)
Attract customers utilizing the know-how of
web marketing with over 15 years
experience.
Target newly established companies.
118,811
114,343
111,238
106,644

96,65991,942
87,91689,664

2010 2011 2012 2013 2014 2015 2016 2017•

Relocation registration number of head officeand branch (total) ：142,975–––

Approx. 140 thousand companies annually.
(Excluding the relocation number of offices thatare not obliged to apply for registration)
Cover change procedures etc. on addition andrelocation.
Cross/Up Selling due to advanced operation by
Customer Loyalty Team (CLT).
(Number)

142,975
138,865
137,594139,734
133,176130,999
130,019131,019

2010 2011 2012 2013 2014 2015 2016 2017

Copyright(C) 2019 VISION INC. All Rights Reserved.

35

Information and Communications Service Business
Growth Strategy (Customer Service)○高度なオペレーションで価値を創出する
Create values with advanced operation
カスタマー･ロイヤリティ･チーム（CLT）
Customer Loyalty Team (CLT)
From delivery procedure to after-follow
Covers a wide range of operations

Customers

Sales rep

Customer Loyalty Team

ProposalContract

Subscription and Delivery
procedure
Decidein details
VariousInstallation
arrangements
Delivery

Arrange schedule

Copyright(C) 2019 VISION INC. All Rights Reserved.

After-follow
SupportHearing

Offer
information
36

Information and Communications Service Business
Growth Strategy (Marketing)
Web marketing × Sales rep
× CLT Trinity “high efficiency”○Webマーケティング×営業×CLT
三位一体の“高効率”マーケティング
marketingNew

Existing

customers

customers

Hearcustomers’
problems andneeds

Acquire highly
reliable actual
demandProposalwith highprecision

Cooperation

Cooperation

Web marketing
team

Customer Loyalty
Team (CLT)

Sales rep
Copyright(C) 2019 VISION INC. All Rights Reserved.

37

Information and Communications Service Business
Growth Strategy (Escalation)○たゆまぬ進化を生みだす組織カルチャー
Organization culture that creates continuous evolution
High productivity created by cooperation between divisions (escalation)
事業部間連携（エスカレーション）が生みだす高い生産性
Customers

Improve productivity due to flat and open culture,promoting cooperation between divisions “escalation system”

Cooperation

Cooperation

Cooperation

Cooperation
Copyright(C) 2019 VISION INC. All Rights Reserved.

38

Information and Communications Service Business
Growth Strategy (Business Model)○Continuous stock model••

Keeping closer to the growth of client companies, offer optimum solutions
according to the growth stage.
Structure that profits are accumulated by our original know-how CRM (customer
relations/continuous dealings).
Optimum
solutions
Optimum
solutions

Further growthstage

Optimum
solutions

Early growthstage
Startupstage

Current main targets:

Future targets:

Growth candidates

Enterprises in growth stages

Copyright(C) 2019 VISION INC. All Rights Reserved.

39

APPENDIX

Copyright(C) 2019 VISION INC. All Rights Reserved.

40

Group Structure
Number of affiliated companies

Number of operation bases

Overseas

Airport counter (directly operated)

Domestic

Overseas
Domestic

15

12

6

10

12

4

3

3

2012

2015

2017

9
2
6

10

12

7

14

14

12

2018

2012

2015

2017

Employee count (Full-time)
586

497
389
281
47
234
2012

174

2015

Profession
Clerical
Sales

146

100
289

351

2017

12

16
2018

Personnel classification

Female
Male

14

412

2018

586
389
33

497
41
191

72
200

281
36
78

146
265

314

167

212

2012

2015

2017

2018

Copyright(C) 2019 VISION INC. All Rights Reserved.

41

Performance Data
Sales

(JPYmn, %)14,640Gross profit
24,47021,503Gross profit
Gross profit ration

12,65010,16017,554

8,622

14,843
12,485
10,1859,203

5,198 5,651
56.5

FY2013FY2014FY2015FY2016FY2017FY2018FY2019

6,909
58.1

55.5

57.9

58.8

55.3

FY2013FY2014FY2015FY2016FY2017FY2018FY2019(Forecast)(Forecast)

SG&A expenses

Operating profit

SG&A expenses
SG&A expenses ratio

5,188 5,365
56.4

6,105

11,628
10,165
7,332

Operating profit
Operating profit ratio

48.9

3,012
2,484

8,372
1,788
1,290
804

52.7

49.4

59.8

47.7

47.3

47.5

FY2013FY2014FY2015FY2016FY2017FY2018FY2019

10

286

8.7

10.2

11.6

12.3

6.4

2.8
0.1
FY2013FY2014FY2015FY2016FY2017FY2018FY2019(Forecast)
Copyright(C) 2019 VISION INC. All Rights Reserved.

(Forecast)42

“GLOBAL WiFi” Business

Customer Attributes(Corporate・Individual : Fiscal Period)
4Q FY2018 ※Fiscal period(Oct.-Dec.) Actual result
Rental number

AmountCorporate
Individual

Corporate
Individual

36.5%

45.7%

63.5%

4Q FY2017 ※Fiscal period(Oct.-Dec.) Actual result

54.3%

Rental number

AmountCorporate
Individual

42.1%

Corporate
Individual

49.1%
50.9%

57.9%

※It is the ratio of overseas use (outbound: Japan ⇒ overseas).
Copyright(C) 2019 VISION INC. All Rights Reserved.

43

“GLOBAL WiFi” Business

Customer Attributes(Corporate・Individual : Cumulative Period)
FY2018 ※Cumulative period(Jan.-Dec.) Actual result
Rental number

AmountCorporate
Individual

Corporate
Individual

37.4%

46.4%

62.6%

53.6%

FY2017 ※Cumulative period(Jan.-Dec.) Actual result

Rental number

AmountCorporate
Individual

43.0%

Corporate
Individual

49.6%
50.4%

57.0%

※It is the ratio of overseas use (outbound: Japan ⇒ overseas).
Copyright(C) 2019 VISION INC. All Rights Reserved.

44

“GLOBAL WiFi” Business

Customer Attributes(New・Repeat : Fiscal Period)
4Q FY2018 ※Fiscal period(Oct.-Dec.) Actual result
Rental number

55.0%

45.0%

4Q FY2017 ※Fiscal period(Oct.-Dec.) Actual result

Rental number

45.1%

AmountRepeatNew

RepeatNew

AmountRepeat
New

54.9%

53.7%

46.3%

Repeat
New

44.9%

55.1%

※It is the ratio of overseas use (outbound: Japan ⇒ overseas).
Copyright(C) 2019 VISION INC. All Rights Reserved.

45

“GLOBAL WiFi” Business

Customer Attributes(New・Repeat : Cumulative Period)
FY2018 ※Cumulative period(Jan.-Dec.) Actual result
Rental number

54.4%

45.6%

AmountRepeatNew

RepeatNew

FY2017 ※Cumulative period(Jan.-Dec.) Actual result

Rental number

46.9%

AmountRepeat
New

53.1%

53.6%

46.4%

Repeat
New

46.8%

53.2%

※It is the ratio of overseas use (outbound: Japan ⇒ overseas).
Copyright(C) 2019 VISION INC. All Rights Reserved.

46

“GLOBAL WiFi” Business

Customer Attributes(By Gender / Age・Past Cumulative Total)
By age5.8% 1.5%
5.9%

By gender, corporate / individual

1.1%

18.0%

14.3%

8.7%
11.4%

13.9%

11.1%

43.0%

7.0%

14.2%

31.9%

12.1%
Under 18

19-24

25-29

30-34

35-39

45-49

50-54

55-59

Over 60

Unknown

2.4%

By age (Male)

7.9%

40-44

Individual / Male

Corporate / Female

Corporate / MaleBy age (Female)
1.5%

0.6%

0.7%

3.6%

8.2%

6.9%
9.7%

Individual / Female

7.6%

11.0%

5.0%

20.3%

9.6%

13.4%

17.4%

9.2%

13.3%
13.5%

13.0%
Under 18

19-24

25-29

30-34

35-39

45-49

50-54

55-59

Over 60

Unknown

Copyright(C) 2019 VISION INC. All Rights Reserved.

10.7%

40-44

14.4%

Under 18

19-24

25-29

30-34

35-39

45-49

50-54

55-59

Over 60

Unknown※It is the ratio of overseas use (outbound: Japan ⇒ overseas).

40-44
47

Overview of Stock Options with Charge Issuance(Resolved by the Board of Directors’ Meeting on November 13, 2017)※Excerpt from “Determination of Details of Issuance of Stock Acquisition Rights” on Nov. 30, 2017

Item

Details

Name

Vision Inc. Third Series Stock Acquisition Rights

Issued13,560 units

Issue price

JPY1,600 per stock acquisition right

Total issue price

JPY3,510,684,000

TargetDirectors (excl. outside directors), employees, employees of the subsidiaries
163 people 13,560 units

Conditions for the
exercise of the stockacquisition rights

If the operating profit for any fiscal year from FY2018 to FY2021 falls
below JPY1.6bn, the subsequent stock acquisition rights cannot be
exercised, except for the stock acquisition rights that are already
exercisable.

(100 shares per stock acquisition right, 1,356,000 shares of common stock)※ See the table below

Operating profit in any fiscal year from
FY2018 to FY2021 exceeds JPY3.6bn• Exercisable ratio：100％

Operating profit in FY2020 exceeds JPY3.1bn• Exercisable ratio：30％

Operating profit in FY2018 exceeds
JPY2.1bn and operating profit in
FY2019 exceeds JPY2.6bn• Exercisable ratio：30％

Copyright(C) 2019 VISION INC. All Rights Reserved.

48

Business Summary

Copyright(C) 2019 VISION INC. All Rights Reserved.

49

VISION INC.
Code
Incorporated

9416

Operation Bases and Affiliates(1st Section of the Tokyo Stock Exchange)

•
•
•
•

December 4, 2001
(Founded June 1, 1995)

Management
Philosophy

Contributing to the Information andCommunications Revolution

Head Office

5F Shinjuku i-Land Tower, 6-5-1 NishiShinjuku, Shinjuku-ku, Tokyo 163-1305

Consolidated
Employees

708 (145)
Domestic: 623 (136)
Global: 85 (9)(Average temporary
employees)

AffiliatedCompanies

Korea, USA (Hawaii), Hong Kong,
Singapore, Taiwan, UK, Vietnam,
China (Shanghai), France, Italy,
USA (California), New Caledonia(As of December 31, 2018)

Domestic: 6
Global: 12

Vision Inc.
Best Link Inc.
Members Net Inc.
Alphatechno Inc.
BOS Inc.
RaPid Corp.
Vision Ad Inc.

GLOBAL WIFI.UK LTD(As of December 31, 2018)

Business

Domestic Affiliated Companies： 6
Domestic Operation Bases： 16
Domestic Airport / Port Counter： 15
Global Affiliated Companies： 12

GLOBAL WiFi
Information andCommunications Service

Global WiFi France SAS
Vision Mobile Italia S.r.I.
上海高效通信科技有限公司

Vision Mobile Korea Inc.
Vision Mobile Hawaii Inc.

Vision Mobile Hong Kong Limited
VISION VIETNAM ONE MEMBER
LIMITED LIABILITY COMPANYVISION MOBILE USA CORP.

無限全球通移動通信股份有限公司（台湾）

GLOBAL WIFI.COM PTE. LTD.
VISION MOBILE NEW CALEDONIA

Affiliates, Purchasing / Operation Bases
Purchasing / Operation Bases
System Development Center (Offshore)

Copyright(C) 2019 VISION INC. All Rights Reserved.

50

History and Evolution of Sales
Changed the market to 1st Section of
the Tokyo Stock Exchange in DEC. 2016
Listed with “Mothers” of the Tokyo
Stock Exchange in DEC. 2015

Started Global Wi-Fi
router rental service

2016
2015

Started e-ca
(domestic) Wi-Fi
router rental service

2012
Established Best Link Inc.
and Members Net Inc.

Started broadband
subscription

2010
2008

Started company
cellphone business

2007
2006
2005
2004
Started Internet
advertising business

Founded
1995

2003
Started international telephone service sales businessfor South American people who live in Japan

Irregular
perioddue tochangesin fiscal
year-end.

Copyright(C) 2019 VISION INC. All Rights Reserved.

51

Our Core Strategies••

Niche & Focus
strategy

Price & Quality
leadership strategy

Discover the challenges
born in the niches of theevolution in informationand communications, anddevelop new markets.
Focus management
resources on carefully
selected targets, andrefine our services.

• Overseas travelers
 Startup companies••

Production efficiency isthoroughly pursued.
Realized by improving
organizational structure
and business speed.
While maintaining highquality of service,
demonstrate pricecompetitivenesssurpassing competitors.

 Productivity, priceadvantage
 Service quality evaluation
Copyright(C) 2019 VISION INC. All Rights Reserved.

Up/Cross selling
strategy••

Pick up new needs for
information andcommunications services
and continuously offer
services at reasonable
prices at the right time.
Build a long-term
relationship withcustomers.
 Original CRM
 Stock business52

Two Business Segments“GLOBAL WiFi” Business•

Offer anytime, anywhere, safe, secureand comfortable mobile Internet
environment all over the world.
––

Rental service
Can connect with multiple users andmultiple devices (companion,
smartphone, laptop, etc.).

Information and Communications
Service Business••

Offer the most suitable informationand communications-related products
and services tailored to the stage andneeds of the company.
Our own sales structure, CRM.
–

Web marketing × Sales rep × CLT(Customer Loyalty Team)

U

.com

Telephone Line Cellphone
Website Support
OfficeArrangements
Support Automation

Copyright(C) 2019 VISION INC. All Rights Reserved.

Security

Electric Power53

Contributing to the Information and Communications Revolution

Copyright(C) 2019 VISION INC. All Rights Reserved.

54

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 does not undertake
any obligation to update and modification of the “forward-looking statements” included in thisannouncement.
Vision Inc.
•
Contact： ir@vision-net.co.jp

Copyright(C) 2019 VISION INC. All Rights Reserved.

55