1st Quarter FY2020

Supplementary Materials

May 12, 2020
Vision Inc.
(1st Section of the Tokyo Stock Exchange, code： 9416)

Company Overview

Copyright(C) 2020 VISION INC. All Rights Reserved.

2

VISION INC.
Code

9416

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

Incorporated

Domestic Affiliated Companies： 8

December 4, 2001

Domestic Operation Bases： 15(Founded June 1, 1995)

Management
Philosophy

Head Office

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

Number ofConsolidated
Employees

810 (146)
Domestic: 711 (134)
Global: 99 (12)(Average temporary
employees)(As of March 31, 2020)

AffiliatedCompanies

Domestic: 8
Global: 12

Global Affiliated Companies： 12
Korea, USA (Hawaii), Hong Kong,
Singapore, Taiwan, UK, Vietnam,
China (Shanghai), France, Italy,
USA (California), New Caledonia

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

GLOBAL WIFI.UK LTD
Global WiFi France SAS
Vision Mobile Italia S.r.I.

(As of March 31, 2020)

Business

Domestic Airport Counter： 19

Contributing to the Information andCommunications Revolution

GLOBAL WiFi
Information andCommunications Service

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) 2020 VISION INC. All Rights Reserved.

3

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

Started GLOBAL
WiFi business

2016
2015

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

2012

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) 2020 VISION INC. All Rights Reserved.

4

Our Core Strategies
Niche & Focus
strategy

Price & Quality
leadership strategy

Up/Cross selling
strategy

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

Production efficiency isthoroughly pursued.
Realized by improving
organizational structure andbusiness speed.
While maintaining highquality of service,
demonstrate pricecompetitiveness surpassing
competitors.

Pick up new needs for
information andcommunications services andcontinuously offer services
at reasonable prices at theright time.
Build a long-term
relationship withcustomers.

 Overseas travelers
 Startup companies

 Productivity, priceadvantage
 Service quality evaluation
Copyright(C) 2020 VISION INC. All Rights Reserved.

 Original CRM
 Stock business5

Business Summary

Copyright(C) 2020 VISION INC. All Rights Reserved.

6

Two Business Segments“GLOBAL WiFi” Business
Provide anytime, anywhere, safe, secureand comfortable mobile internet
environment all over the world.
Rental service.
Connectable with multiple users and multiple
devices (companion, smartphone, laptop, etc.).

Information and Communications
Service Business
Provide the most suitable information andcommunications-related products andservices tailored to the stage and needsof the company since starting business.
Our own sales structure, CRM.
Web marketing × Sales rep × CLT (Customer
Loyalty Team).com

Order and payment

Receive routerUse overseas

Return router

Telephone Cellphone
OfficeSupport AutomationLine
Arrangements

Copyright(C) 2020 VISION INC. All Rights Reserved.

WebsiteSupportSecurity

ElectricPower

Cloud App
Service(SaaS)

7

“GLOBAL WiFi” BusinessBusiness Model/Competitive Advantage

Areas

Maximum cost benefits -89.9%
From JPY300/day

Japanese cellphone companies’ fixed-rate discount comparison

Available in over 200 countries and regions worldwide, leading theindustry in the number

Comfortable

High-speed communications in partnership with telecom carriers aroundthe world

Safe / Secure

Secure; 47 support bases available 24 hours a day, 365 days a year,
around the world

Worldwide
telecommunications
companies

Customers

Uptake ability of corporate needs
Number of users is the largest in the industry

Datacommunication
service

Payment

Direct website
Apps
Affiliates
EC mallCorporate sales
Partners
Airport counters

Shipping
ReturnEnd Users

Corporate Sales

Number of airport counter is the industry’s largest class

Vision GroupCounterJoin from Sep. 2019.
One of the world’s largest
mobile telecom businessassociations that links
more than 750 mobile
telecom carriers and 400
related industrial
operators worldwide.

Rental fees

Copyright(C) 2020 VISION INC. All Rights Reserved.

Payment

Settlement service
providers

Less Expensive
Fixed-rate

8Compare How to Connect the Internet Abroad ①“Global WiFi” “NINJA WiFi” is the best way due to safe, secure, comfortable, and lessexpensive.
It’s not a big deal to share with a rental Wi-Fi router, although people are reluctant toshare their own data-volume with others. (Individual travel: tend to share with two or
three people.)* 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

×

△

△

○

○

Problem with price and quality(From JPY980 to JPY2,980/day. It may be charged even more.)

△

△

○

×

○

Need knowledge to manage (Set-up, activation, periodical charge, etc.)

○

×

△

○

×

(Hotel, Café, etc.) Problem with coverage (not available in everywhere), speed (depend on data-line of
the facility and the number of connected people), security
Copyright(C) 2020 VISION INC. All Rights Reserved.

9

Compare How to Connect the Internet Abroad ②

Wi-Fi router rental
JPY300-1,970/day

Apply through the website.

Table

Price

Roaming(Telecom carriers’
fixed-rate)

Free Wi-Fi Spot /Hotel Wi-Fi

JPY980-2,980/day

Free Wi-Fi spot freeContract according to the plan
Need to check in advance thecompatible models and settings.
* Depend on your mobile carrier

Fixed-rate and high-speed
Substantial security and compensation
Use without worry due to the fixed-rate.
Choose the data-volume according to thesituation.

Merit

Easy to connect

RecoInternet availability anywhere. mmend
No worry about busy access anddifficulty to connect.

accommodation fee or
JPY500-3,000
Easy to use* Tethering is also available.

Limited use area, but many places
are provided for free, and connection
is easy.

Expensive

Be careful about
unauthorized access

More luggage
Price setting is more expensive than
Need to carry a Wi-Fi router in addition to Demerit
Wi-Fi rental.
your smartphone.
Misconfiguration of data-roaming may
result in expensive charges.
If you use the internet at a high-speed
without worrying about additional charges(Available to use by multiple people, evencheaper by the split)

Hotel Wi-Fi including

If you want to use theinternet easily
with your own device

Copyright(C) 2020 VISION INC. All Rights Reserved.

Easy to use, but there is a risk ofvirus infection and personal
information may be stolen byunauthorized access.

Want to save money,
although the coveragearea is limited.
If it is enough for you to
use the internet abroad
within a limited time10

“GLOBAL WiFi” BusinessProfit Structure

Items

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) 2020 VISION INC. All Rights Reserved.

11

“GLOBAL WiFi” Business
Penetration Ratio/Rental Number
Our Wi-Fi rental service penetration ratio (Japan) *(Usage ratio of our service among travelers)
Overseas use share (Outbound: Japan ⇒ Overseas)
Domestic use share (Inbound: Overseas ⇒ Japan + Japanese)
Share in the Japanese market (Out + In)

1.4%

4.4% 2.7%

2.0%
0.4%
0.3%
0.7%
0.0%
0.2%
FY2012FY2013
FY2014

6.4%
3.5%

1.2%
FY2015

14.9%
8.3%

11.7%

4.7%

5.8%

2.1%
FY20162.2%
FY20177.1%

2.5%
FY2018Annual rental number (Unit: 10 thousand）* Usage number of “GLOBAL WiFi for Biz” is not included.
Overseas business (Except for use in Japan, Overseas ⇒ Overseas)
Domestic use (Inbound: Overseas ⇒ Japan + Japanese)
Overseas use (Outbound: Japan ⇒ Overseas)

5
4

FY2012

24
1
22

51
1
3
46

FY2013

FY2014* Create from Japan Tourism Agency material by us

78
4
9
64
FY2015114
61988
FY2016

165
6
28
130
FY2017

223
6
40

175

FY2018

Copyright(C) 2020 VISION INC. All Rights Reserved.

17.3%
8.6%

3.1%
FY2019

283
7
59

216

FY201912

“GLOBAL WiFi” Business

Market Size

Inbound (Foreign visitors to Japan)

Overseas travelers in the world (Numberof international tourist arrivals)
A huge market of 1.4bn people.

Over 31.88mn people for a year.
* Results in FY2019
Government’s target:
60mn people in 2030

Outbound (Japan → Overseas)
Approx. 20.08mn people for a year.
* Results in FY2019(10 thou. people)(mn people)

18.0
6,000
Forecast
Government’s
target

14.0

13.3

3,188

Inbound
Outbound

3,119
2,869

9.5

10.0

10.4

11.0

11.4

11.9

12.4

2,403

861

621

1,973
1,341
835 1,036

2,008
1,900

1,663 1,699 1,849 1,747 1,690 1,621 1,711 1,788 1,895

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

～

2030

2010 2011 2012 2013 2014 2015 2016 2017 2018～

Create from JNTO materials, Reiwa1 edition tourism white paper, and the materials released by UNWTO

Copyright(C) 2020 VISION INC. All Rights Reserved.

13

2030

Information and Communications Service Business
Growth Strategy (Competitive Advantage)

StartupCompanies
WEB Strategy

Customer Loyalty

Products andservices

Have new dealings with one company in seven to eight companies* that are newly
established within the year in JapanThe number of national corporate registration ... 116,208 (2018)
Source: Ministry of Justice

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
Additional sales with high productivity (up/cross selling)
Products and services that lead to customers’ “sales improvement”, “cost reduction”,“efficiency improvement”, “communication activation”, and “DX promotion” (Productsthat are less affected by the economy)
We have multiple business segments (each product), and the business structure can bechanged according to the situation (economic conditions, trends, etc.) (a flexible businessstructure).

.com
Telephone Line Cellphone
Arrangements
Support

OfficeAutomation

Website Support

Security

Electric Power

Cloud App
Service(SaaS)* Total number of companies established within 6 months (including sole proprietors), starting business with us (our research)
The number of acquisitions will depend on the fluctuations in handling services and products.
Copyright(C) 2020 VISION INC. All Rights Reserved.

14

Information and Communications Service BusinessProfit Structure
Summary
Items

Sales

Cost ofsales

Telephone line arrangements, cellphone,electric power, etc.

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

Business brokerage fee (commission)

Sales priceContinuation fee (according to customers’

Fee from leasing company and credit company

usage situation)

Maintenance fee

Fee from telecom carriers and primary agents

Fee from the manufacturers and factoring

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),

Payment to telecom carriers and primary agentsetc.

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) 2020 VISION INC. All Rights Reserved.

15

Information and Communications Service Business
Market Size
Number of incorporation registrations (total) ：116,208

Number of registration of transfer of head officeand branch (total) ：144,597

Approx. 110 thousand companies annually.
(Continued increase trend due to aggressive establishment
and corporate support by the government)
Attract customers utilizing the know-how of web
marketing with over 15 years experience.
Target newly established companies.

Approx. 140 thousand companies annually.
(Excluding the number of offices transferred that are notobliged to apply for registration)
Cover change procedures, etc. on addition and relocation.
Cross/Up Selling by advanced operations of Customer
Loyalty Team (CLT).
(Unit: 10 thousand)

10.6

8.7

8.9

9.1

11.1

11.4

11.8 11.6
13.8

13.3

13.0

13.0

13.1

13.7

13.9

14.2

14.4

9.6

2010 2011 2012 2013 2014 2015 2016 2017 20182010 2011 2012 2013 2014 2015 2016 2017 2018

Copyright(C) 2020 VISION INC. All Rights Reserved.

16

Information and Communications Service BusinessBusiness Model『 Vision Hybrid Synergy model 』

Sales improvement

Existing users
needs
Cross selling Cost reduction
Up sellingneeds
Efficiency(Pull)The business model built for 25 years since its
foundation has been developed to allbusinesses such as “GLOBAL WiFi” business.

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

Identified needs that
customers are aware ofUser relationship

Develop newVideocustomers .com website
Landing Page
marketing(Pull)
SNS&emailGlobalmarketing

ＤＸ promotion

DX promotion
New users

Subscription
promotion

Potential needs that
customers areunaware of

Existing users

Management
Strategy
Improve

ＤＸ promotion

productivity
Analyze customer
attribute
Strategy
Improvegross marginplanning

Big data
TargetingMarketing

In-house SaaS
promotion

DX promotion

Membershipstrategy

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) 2020 VISION INC. All Rights Reserved.

Existing users
Cross selling
Up selling(Push)

Definite targeting, timing
sales, Life Time Value
17

Information and Communications Service Business
Customer Service
Create values with advanced operations
Customer Loyalty Team (CLT)
From delivery procedure to follow-up
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) 2020 VISION INC. All Rights Reserved.

Follow-up
SupportHearing

Offer
information18

Information and Communications Service Business
Marketing
Web marketing × Sales rep × CLT Trinity “high efficiency”
marketingNew
customers

Acquire highly
reliable actual
demandExisting
customers

Hearcustomers’
problems andneeds

Proposalwith highprecision

Cooperation

Cooperation

Web marketing
team

Customer Loyalty
Team (CLT)

Sales rep
Copyright(C) 2020 VISION INC. All Rights Reserved.

19

Information and Communications Service Business
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
Highproductivity 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 among divisions by “escalation system”

Cooperation

Cooperation

Cooperation

Cooperation
Copyright(C) 2020 VISION INC. All Rights Reserved.

20

Information and Communications Service BusinessContinuous Stock ModelContinuous 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).
Offer products and services
Offer OA equipment
and website support
etc. suitable for thebusiness environment
Consulting services
suitable for thebusiness growth stage

Optimum
solutions

Optimum
solutionssuitable for the businessenvironment
Offer in-house products
and services
Consulting services suitable
for the business growth
stage

Early growthstage
Startup
stage

Increase members
due to expansion(Add lines, numbers
etc.)

Optimum
solutions

Further growth
stage

Increase members
due to expansion(Add lines,
numbers etc.)

Current main targets:

Future targets:

Growth candidates

Enterprises in growth stages

Copyright(C) 2020 VISION INC. All Rights Reserved.

21

APPENDIX

Copyright(C) 2020 VISION INC. All Rights Reserved.

22

Group Structure
Number of affiliated companies

Number of operation bases
Airport counter (directly operated)
Overseas
Domestic

Overseas
Domestic

12
12

12

12

12

3

3

2016

2017

7

8

9

2018

2019

2020１Q

Number of employees (Full-time)
664
649
Female
586
Male
206
205
497
452
174
146
127

12

12

12

12

2016

2017

325

351

2016

2017

412

2018

444

2019

19

12

12

12

16

15

15

2018

2019

2020１Q

Personnel classification
649
586
84
497
41

452
32
194

18

14

10

Profession
Clerical
Sales

15

191

91

72

200

458

2020１Q

664

228

227

226

265

314

337

346

2016

2017

2018

2019

2020１Q

Copyright(C) 2020 VISION INC. All Rights Reserved.

23

Performance Data
Sales

27,318(JPYmn, %)Gross profit

15,690Gross profit margin

21,503

12,485
10,1859,203

Gross profit

12,65017,554
14,843
5,198 5,651
56.5

55.5

6,909

8,622
58.1

10,160
57.9

58.8

57.4

55.3

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

SG&A expenses

Operating profit

SG&A expenses

Operating profit

SG&A-to-sales ratio

12,365

Operating profit margin

3,325

10,165
5,188 5,365
56.4

52.7

6,105

7,332

2,484

8,372
1,788
1,290
804

48.9

49.4

47.7

47.3

45.3

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

286

10
0.1

8.7

10.2

11.6

12.2

6.4

2.8

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019

Copyright(C) 2020 VISION INC. All Rights Reserved.

24

“GLOBAL WiFi” Business

Customer Attributes(Corporate/Individual)
1Q FY2020(Jan.-Mar.) Result

Rental number

Corporate
Individual

Amount

31.8%

40.5%
59.5%

68.2%

1Q FY2019(Jan.-Mar.) Result

Corporate
Individual

Rental number

Corporate
Individual

Amount30.9%

Corporate
Individual

38.9%
61.1%

69.1%

* It is the ratio of overseas use (outbound: Japan ⇒ overseas).
Copyright(C) 2020 VISION INC. All Rights Reserved.

25

“GLOBAL WiFi” Business

Customer Attributes(New/Repeat)
1Q FY2020(Jan.-Mar.) Result

Rental number

AmountRepeatNew

47.0%

1Q FY2019(Jan.-Mar.) Result

Repeat
New

49.2%

53.0%

Rental number

50.8%

AmountRepeatNew

Repeat
New

48.6%

50.0%

51.4%

50.0%

* It is the ratio of overseas use (outbound: Japan ⇒ overseas).
Copyright(C) 2020 VISION INC. All Rights Reserved.

26

“GLOBAL WiFi” Business

Customer Attributes(Age/Gender, Corporate or Individual)
1Q FY2020 (Jan.-Mar.) Result
Gender, Corporate or individual

Age

1.0%

4.5%

5.1%
4.5%
6.4%

10.2%
6.2%

7.6%

35.9%

50.0%

6.6%
33.6%

7.3%
8.5%

Under 18
35-39
55-59

12.6%

19-24
40-44
Over 60

25-29
45-49
Unknown

30-34
50-54

1Q FY2019 (Jan.-Mar.) Result
5.4%

Age

0.9%
4.9%
7.5%

2.1%
31.8%

Individual / Female

Individual / Male

Corporate / Female

Corporate / Male

Gender, Corporate or individual
4.7%

10.9%

9.6%
7.9%

8.0%

31.7%
9.0%

52.7%

12.8%

Under 18
19-24
25-29
30-34
Individual / Female
Individual / Male
35-39
40-44
45-49
50-54
Corporate / Female
Corporate / Male
55-59
Over 60
Unknown* It is the ratio of overseas use (outbound: Japan ⇒ overseas). 27
Copyright(C) 2020 VISION INC. All Rights Reserved.

“GLOBAL WiFi” Business

Customer Attributes(Age/Gender)
1Q FY2020 (Jan.-Mar.) Result
1.6%

Age (Male)

2.6%

5.4%7.4%
6.9%

8.0%

12.6%
9.1%

Under 18
35-39
55-59

3.3%

5.6%
6.0%
7.4%

42.3%

12.6%

10.0%

19-24
40-44
Over 60

6.0%

6.0%3.8%
6.7%

27.7%

8.8%

Age (Female)

0.4%

25-29
45-49
Unknown

30-34
50-54

Under 18
35-39
55-59

19-24
40-44
Over 60

25-29
45-49
Unknown

30-34
50-54

1Q FY2019 (Jan.-Mar.) Result
1.7%

Age (Male)

5.9% 8.2%
8.4%

21.8%
11.7%

11.2%
9.5%

1.4%

9.9%

10.2%

3.3%

0.3%

Age (Female)

2.6%

4.2%
6.9%
8.4%

6.6%

39.3%

6.5%
8.2%

13.6%

Under 18
19-24
25-29
30-34
Under 18
19-24
25-29
30-34
35-39
40-44
45-49
50-54
35-39
40-44
45-49
50-54
55-59
Over 60
Unknown
55-59
Over 60
Unknown
Copyright(C) 2020 VISION INC. All Rights Reserved.
* It is the ratio of overseas use (outbound: Japan ⇒ overseas). 28

To Contribute to the Global Information andCommunications Revolution

Copyright(C) 2020 VISION INC. All Rights Reserved.

29

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： ir@vision-net.co.jp

Copyright(C) 2020 VISION INC. All Rights Reserved.

30