Bridge Report（9416） March 4 2021

https://www.bridge-salon.jp/

Vision Inc. (9416)

President Kenichi Sano

Company Information
MarketIndustryCEO
HQ Address
Year-end
HP

TSE 1st Section
Information and telecommunications
Kenichi Sano
Shinjuku i-Land Tower, 6-5-1 Nishi-Shinjuku, Shinjuku-ku, Tokyo
Decemberhttps://www.vision-net.co.jp/en/ir_information.html

Stock Information
Number of Shares Issued(Treasury stock excluded)¥1,20047,079,756 shares
DPS (Est.)
Dividend Yield (Est.)
EPS (Est.)¥5.21

Share Price

Total Market Cap

ROE（Act）¥56,495 million
PER (Est.)
230.3x

Trading Unit-

BPS (Actual)¥185.79

100 shares
PBR
6.5x

* Stock price as of the close on March 3, 2021. Number of shares issued at the end of the most recent quarter excluding treasury shares. All figures are from thefinancial results for December 2020.

Consolidated Earnings Trends
Fiscal Year
Dec. 2017 (Actual)Dec. 2018 (Actual)Dec. 2019 (Actual)Dec. 2020 (Actual)Dec. 2021 (Forecast)

Net Sales
Operating Income Ordinary Income
17,554
1,788
1,795
21,5032,484
2,499
27,3183,325
3,358
16,654103
227
15,163407
397

Net Income
1,208
1,529
2,226
-1,183245

EPS (¥)
24.76
31.40
46.05
5.21

DPS (¥)-* The forecasted values were provided by the company. Unit: Million yen or yen. In October 2019, the company split one share into three shares (EPS retroactively
adjusted).

This Bridge Report outlines Vision's results for the fiscal year ended December 2020 and the forecast for the fiscal year ending
December 2021.
1

Bridge Report（9416） March 4 2021

https://www.bridge-salon.jp/

Table of Contents
Key Points
1．Company Overview
2．Fiscal Year December 2020 Earnings Results
3．Fiscal Year December 2021 Earnings Estimates
4. Growth strategy considering the post-pandemic world where people will lead their daily lives while coping with the novel coronavirus
5．Conclusions<For reference: Initiatives for ESG・SDGs><Reference: Regarding corporate governance>

Key Points⚫

In the fiscal year ended Dec. 2020, sales fell 39.0% year on year to 16,654 million yen. Although the company actively met
demand for various types of mobile Wi-Fi routers, sales fell across all segments due partly to the near-zero demand fromboth foreign visitors to Japan (inbound travelers) and Japanese tourists traveling overseas (outbound travelers) fromMarch 2020 due to the novel coronavirus pandemic, coupled with changes in the business structure and the promotion ofsales of in-house services (monthly charged). Meanwhile, operating income slumped 96.9% year on year to 103 million yen.
Amid a decrease in sales, the company successfully reduced SG&A expenses by revising/curbing various expenses, such as
advertisement costs (for listing ads, etc.), provisions for earnings-linked bonuses, packing and freight expenses, travel
expenses, and costs for office supplies. However, these were insufficient to make up for the sales decline. The Global WiFi
business reported a net loss of 1,183 million yen due to the booking of 1.8 billion yen in extraordinary losses, including
impairment losses on assets in connection with the novel coronavirus pandemic. Although the company witnessed majordeclines in sales and profits, profits topped its revised estimates.

⚫

For the fiscal year ending Dec. 2021, sales are estimated to fall 9.0% year on year to 15,163 million yen, while operating
income is projected to soar 292.4% year on year to 407 million yen. In the Global WiFi business, the company estimatesthat the number of foreign visitors to Japan and the number of Japanese people traveling overseas from January 2021 will
be largely in line with those seen since March 2020, expecting demand to recover 25% vs. 2019 levels from the fourth
quarter (from October 2021). Also, as it is unclear how the novel coronavirus pandemic will impact corporate activities,
the company has formulated conservative projections for remote work demand. As for the Information andCommunications Service business, the number of newly established corporations is anticipated to either remain flat year
on year or decrease slightly, with the pandemic only expected to have a minor impact on the number of sales transactions
thanks to online sales activities. The company plans to expand its business operations, centered on in-house monthly
subscription services (recurring revenue), while slightly increasing/maintaining revenue levels for subscription agency
operations and telecommunication device sales (one-off revenue). It does not expect to book any impairment losses.

⚫

Although sales and profits plummeted, in the fourth quarter the Global WiFi business moved into the black on a monthly
basis and company-wide profit topped Vision’s projections. It seems that the firm’s swift and unique response to changes
in the environment proved successful. Also, in the Information and Communications Service business, sales dropped
slightly, but profits rose thanks to the steady capture of demand stemming from the novel coronavirus pandemic, with its
business portfolio also providing a boost. However, the company is under the impression that the harsh, unclear operating
environment will continue in the current fiscal year, and has thus positioned this term as a year to make preparations toleverage its competitive edge when cross-border travel does recover. In other words, it is building a foundation to prepare
for its leap to the next stage. With a top-line recovery looking unlikely, our focus will be on the extent to which Vision canboost profits by improving the productivity of existing businesses.

2

Bridge Report（9416） March 4 2021

https://www.bridge-salon.jp/

1. Company Overview
Under the management philosophy of “Contributing to the Information and Communications Revolution,” Vision conducts the Global
WiFi business, which leases the personal Wi-Fi (wireless LAN) routers which can be used in over 200 countries and regions on a flatrate basis, and as an Information and Communications Service distributor, it also provides Information and Communications Service
business of arranging telecommunications infrastructure and office equipment necessary for business activities, such as fixed-line
telecommunications, mobile telecommunications, broadband etc.
The company forms a group with its 18 consolidated subsidiaries, both inside and outside Japan. Of those, the 6 based in Japan are
Members Net Inc. (which conducts the business of charging agency, fixed-line telephone service subscription agency, etc.) and Best
Link Inc. (which carries out the business of broadband service subscription agency), etc. There are 12 overseas subsidiaries that operate
as overseas hubs for the Global WiFi service in South Korea, Singapore, UK, Hong Kong, Hawaii, Taiwan, China (Shanghai), France,
Italy, California and New Caledonia; there is also a local subsidiary in Vietnam, which is an offshore hub for database construction andsystem development.
【Vision Group’s management philosophy – Contributing to the Information and Communications Revolution in the world】
We will actively promote the Information and Communications Revolution in the world, bring innovations to an individual’s lifestyleand the company’s business style, and contribute to the advancement of humanity and society by continuing to be an distributor that
effectively and efficiently connects the client companies with end users and makes sure that its employee’s unlimited ambition, dreams
and thoughts are contributing to the stakeholders, without compromising nor ever forgetting the venture spirit and add to the progress ofthe human race and the society.
1-1 Business Description
Global WiFi business
The company offers services including “Global WiFi” (a Wi-Fi router rental service that allows people traveling overseas to use local
internet services at a competitive rate through its partnerships with the overseas operators) and “NINJA WiFi” (a Wi-Fi router rental
service for overseas visitors to Japan, etc.), while also engaging in services for the travelers between foreign countries in overseas bases(South Korea, Taiwan and California).
The term-end number of leased Wi-Fi routers that are equipped with the next-generation telecommunication technology (Cloud WiFi)
capable of managing Subscriber Identity Modules (SIMs) on the cloud accounts for over 90% of all leased devices (Depending on
telecommunication carriers, some countries are not supported, thus the company has almost reached the upper limit).

（From the reference material of the company）

Advantages (1) Affordable fixed-rate system, (2) the most comprehensive area coverage, (3) comfort, (4) safety/security, and (5)substantial support bases and corporate sales capabilities ⇒ One of the largest customer bases in the industry
The advantages of “Global WiFi” and “NINJA WiFi” include the following: (1) cost benefits of up to 89.9% (the rental fee per day is
300 yen at the minimum, depending on the travel destination) compared to the overseas fixed-rate packet plans offered by other Japanese
mobile carriers, (2) the industry’s most comprehensive coverage of over 200 countries and regions, (3) high-speed telecommunications
services through partnerships with telecommunication operators all over the world, (4) available at 24 hours a day, 365 days a year, at
47 bases worldwide, and (5) the industry’s largest number of available spots at airport counters.
3

Bridge Report（9416） March 4 2021

https://www.bridge-salon.jp/

Furthermore, from the business perspective, another advantageous point is the fact that use by corporations, through which stable demandcan be expected, has accounted for about 30%~40% in this business segment. As a result, the company has secured a great number ofusers, which is one of the largest market shares in the industry.
The store digitalization strategy and establishment of the super last-minute online order receipt system
The company is proceeding with the strategy of making stores digitalized by (1) installing automatic delivery lockers (Smart Pickup),(2) adopting self-registration KIOSK terminals with multilingual support and payment settlement functions (Smart Entry), and (3) the
QR code-based reception counter that features immediate customer identification (Smart Check), while expanding the number ofmanned counters in Japan. The company aims to evolve its stores to ones that can be used by Japanese tourists travelling abroad andforeign tourists visiting Japan, more conveniently, more comfortably, and with greater peace of mind, as well as strengthen its efforts
toward the increase of routers on lease (number of routers delivered) and increase of optional services (such as insurance services andaccessories).

（From the reference material of the company）

In addition to strengthening the contact point with users, the store digitalization will make it possible to optimize the level of services
according to user needs (reducing the waiting time for repeat users who do not require explanations while making airport staff deal withusers who need it). As it is difficult to expand and install more airport counters, the company is planning to increase Smart Pickup lockers,
which will save labor, and improve throughput and reduce costs by utilizing the limited space effectively.
Furthermore, the combination of the store digitalization strategy, Cloud WiFi, and the customer database has established a “super lastminute online order receipt system,” enabling the company to provide services for customers who are about to depart (the system has
made it possible for the company to cope expeditiously with online application submitted right in front of airport counters by linking itwith the database).

4

Bridge Report（9416） March 4 2021

https://www.bridge-salon.jp/

Information and Communications Service businessWith Best Link Inc., a consolidated subsidiary, at its core, the group offers services aimed mainly at newly established corporations,venture businesses and multi-store development enterprises such as food-service chains, from its 15 offices nationwide and incooperation with its partner companies. The services include subscription agency operations for various telecommunications services
such as business phones, agency operations of arranging lines for landline telephones, subscriber telephones, and NTT Hikari telephones,
corporate mobile phones, broadband lines, sales and maintenance of mobile telecommunication devices, OA equipment and security
products (UTM), etc., designing websites, and agency operations for new power services targeting enterprises.
The company has advantages in prospecting for corporations newly established (within 6 months), one of its major targets, and it isestimated, according to the data by the Ministry of Justice (the number of newly registered companies was 118,532 in Japan in 2019),
that the company has conducted transactions with around one in every 10 corporations newly founded in Japan. These advantageous
points are backed by the company’s strong power to attract customers through its unique online marketing (Internet media strategy),
through which the company maximizes running yield (recurring revenue-type business) and conducts additional sales with highproductivity (up/cross selling) through the Customer Relationship Management (CRM; customer relationship and ongoing transactions)strategy.
For example, the company receives commission from operators for telephone line arrangements unless contracts for the service arecancelled, and it can earn maintenance fees for multifunction photocopiers on a continuous basis. Moreover, the follow-up service by its
customer loyalty team has enabled the company to establish a recurring revenue-type business model, in which earnings are accumulated
by taking in demand for lines and equipment that increases with customers’ business growth, and providing optimal services according
to customers’ growth stage (additional sales with high productivity through up/cross selling). The company will evolve its recurring
revenue-type business model while expanding the target customer from enterprises with growth potential to ones in the growth stage.

2．Fiscal Year December 2020 Earnings Results
2-1 Consolidated Business Results
Ratio toRatio toFY 12/20
YoY
Sales
Sales
Sales
27,318100.0%
16,654100.0%-39.0%
Gross profit
15,690
57.4%
8,793
52.8%
-44.0%
SG&A expenses
12,365
45.3%
8,689
52.2%
-29.7%
Operating income
3,325
12.2%
103
0.6%
-96.9%
Ordinary income
3,358
12.3%
227
1.4%
-93.2%Net income
2,226
8.1%
-1,183*Unit: ¥mn The revised forecasts represent those announced by the company on November 9, 2020.
FY 12/19

RevisedCompared with
forecast
the forecast
16,700
-0.3%
8,888
-1.1%
8,830
-1.6%
58
+78.6%
167+35.8%-1,226-

Sales and operating income decreased 39.0% and 96.9% year on year, respectively. Profits exceeded the revised estimates.
Sales fell 39.0% year on year to 16,654 million yen.
Although the company actively met demand for various types of mobile Wi-Fi routers, sales fell across all segments due partly to thenear-zero demand from both foreign visitors to Japan (inbound travelers) and Japanese tourists traveling overseas (outbound travelers)from March 2020 due to the novel coronavirus pandemic, coupled with changes in the business structure and the promotion of sales of
in-house services (monthly charged).
Operating income plummeted 96.9% year on year to 103 million yen.
Amid a decrease in sales, the company successfully reduced SG&A expenses by revising/curbing various expenses, such as
advertisement costs (for listing ads, etc.), provisions for earnings-linked bonuses, packing and freight expenses, travel expenses, andcosts for office supplies. However, these were insufficient to make up for the sales decline.
While the company secured an ordinary income of 227 million yen through improvements in non-operating income/loss from subsidies,
The Global WiFi business reported a net loss of 1,183 million yen due to the booking of 1.8 billion yen in extraordinary losses, including5

Bridge Report（9416） March 4 2021

https://www.bridge-salon.jp/

impairment losses on assets in connection with the novel coronavirus pandemic.
In the Global WiFi business, assuming overseas travel (outbound and inbound) will not recover even after the end of the current term,
the company reduced the book value of assets (Wi-Fi routers, options, software, equipment, fixtures, etc.) that have become unprofitable
and are unlikely to recoup their investments, and recorded an impairment loss of approx. 1,395million yen as an extraordinary loss.
Quarterly business results
18/122Q
1Q
Sales
4,922 4,933
Gross profit
2,930 2,888
SG&A
2,194 2,388
expenses
Operating736
499
incomeOrdinary
745
499
incomeNet income
514
295
Gross Profit
59.5% 58.6%
Margin
SG&A ratio
44.6% 48.4%

2Q

3Q

5,686
3,251

19/121Q
6,470
3,797

6,467
3,698

7,610
4,474

20/121Q
6,770 5,989
3,719 3,252

2,679

2,903

2,817

2,988

3,194

3,364

900

348

980

710

1,280

900

353

980

692

623

96

669

406

60.0%

57.2%

58.7%

44.9%

51.1%

43.6%

3Q

4Q

5,961
3,579

4Q

2Q

3Q

4Q

3,641
1,569

3,477
2,001

3,546
1,969

2,764

2,072

1,928

1,923

354

488

-503

73

45

1,338

346

496

-429

101

60

911

239

116

-1,4681244257.2% 58.8% 54.9% 54.3%

43.1% 57.6%

55.5%

46.2% 42.0% 49.7% 46.2%

56.9% 55.4%

54.2%*Unit: ¥mn

On a quarterly basis, sales remained flat at low levels, but in the third and fourth quarters, black was reported for operating income andbelow.
2-2

Trends by segment
FY 19/12

Global WiFi
Information and Communications Service
OthersConsolidated Sales
Global WiFi
Information and Communications Service
OthersAdjustments
Consolidated Operating Income

17,732
8,954
630
27,318
3,301
1,363
-266
-1,073
3,325

Composition
Ratio
64.9%
32.8%
2.3%
100.0%
18.6%
15.2%
12.2%

FY 20/12
7,278
8,796
579
16,654
-90
1,520
-392
-933
103

Composition
Ratio
43.7%
52.8%
3.5%
１00.0%
17.3%
0.6%

YOY
-59.0%-1.8%-8.1%-39.0%+11.5%-96.9%*Unit: ¥mn. Sales represents sales to external customers.

Global WiFi
Information
Communications
Service
OthersConsolidated Sales
Global WiFi

18/121Q
3,089
and 1,818

2Q

3Q

2Q

3Q

3,929
1,975

19/121Q
3,589 4,075
1,970 2,302

2,898
2,009

4,109
2,206

14
4,922
701

26
4,933
448

56
5,961
769

126
5,686
495

151
6,467
724

4Q

92
6,470
871

2Q

3Q

4Q

5,084
2,330

20/121Q
4,462 3,347
2,115 2,514

1,286
2,003

1,272
2,145

1,371
2,133

194
7,610
1,274

192
6,770
430

351
3,641
-347

59
3,477
-27

41
3,546
-42

4Q

126
5,989
326

6

Bridge Report（9416） March 4 2021

Information
andCommunications
Service
OthersAdjustments
Consolidated
Operating Income

https://www.bridge-salon.jp/

296

337

371

212

482

350

342

188

517

299

367

335

-28
-232
736

-38
-247
499

-29
-211
900

-97
-262
348

-86
-286
980

-70
-293
710

-61
-275
1,280

-47
-217
354

-91
-264
488

-214
-240
-503

-49
-217
73

-36
-210
45

*Unit: ¥mn. Sales represents sales to external customers.

Global WiFi business
For the full year, the company reported a decrease in sales and an operating loss.
The demand from both outbound and inbound travelers shrank sharply due to the impact from the novel coronavirus pandemic.
Meanwhile, sales of Global WiFi for Biz, which is installed in each corporation for regular use, were solid, and the company successfully
captured demand stemming from remote work, online lessons, and local governments (Board of Education, etc.) in connection with thegovernment’s GIGA (Global and Innovation Gateway for All) School Concept, as well as various usage needs such as substitute device
when moving, during hospitalization, business trips, combined use with home lines, events.
In addition, the company successfully reduced costs, including personnel costs (job rotation, etc.), land rent, sales promotion expenses,
advertising costs, and by closure and temporary closure of some stores. By doing so, operations moved back into the black on a monthly
basis in the fourth quarter (October-December).
Information and Communications Service businessOver the full fiscal year, sales fell, while profits increased.
Sales dropped slightly due partly to changes in the business structure and the promotion of sales of in-house services (monthly fees).
Meanwhile, the company developed sales activities that accurately captured the needs of companies to reduce costs (communication,
electricity fees, etc.) due to the impact from the novel coronavirus pandemic, as well as the growing need for solutions for remote work.
It also delivered strong levels of client acquisition for monthly subscription website production service, “Vision Crafts!”, and successfully
boosted sales for one-off revenue and in-house services (monthly fees) that will serve as the income base (recurring revenue) in the next
fiscal year onward. Also, due to changes in working styles amid the pandemic, by carrying out sales activities via online meetings insteadof making sales visits in person, the company was able to prevent the loss of sales opportunities while also reducing operating costs. As
a result, operating income increased 11.5% year on year.
Vision is working to improve the stability and profitability of its operations by increasing stock and carrying out highly efficient sales
activities, centered on upstream strategies targeting newly established corporations and up/cross-selling based on the growth stage of theclient corporation.

7

Bridge Report（9416） March 4 2021

https://www.bridge-salon.jp/

2-3 Financial Condition and Cash Flow
◎Financial Condition
December 2019 December 2020
Cash and deposits
8,485
6,650 Trade payables
Trade receivables
2,218
1,428 Income taxes payable
Current assets
11,792
8,872 Provision for bonuses
Property, plant and equipment
1,200
342 Current liabilities
Intangible fixed assets
666
196 Noncurrent liabilities
Investments and Other
1,514
1,900 Net assets
Noncurrent assets
3,381
2,440 Total liabilities Equity

December 2019 December 2020
1,203
716
634
55
280
159
4,222
2,507
46
36
10,905
8,769
15,173
11,313*Unit: ¥mn

Total assets came to 11,313 million yen, down 3,860 million yen from the end of the previous term. On the debit side, cash and deposits,
notes receivable and accounts receivable decreased, and property, plant and equipment and intangible fixed assets decreased due to therecording of impairment losses. On the credit side, net assets decreased due to a drop in retained earnings and an increase in treasury
stock. Capital-to-asset ratio stood at 77.3% (71.7% at the end of the previous term).
Although it established a commitment line of 3 billion yen in May 2020, the company has not borrowed any money from other overdraft
facilities or the like.
◎Cash Flow
Operating Cash Flow (A)Investing Cash Flow (B)Free Cash Flow (A+B)
Financing Cash Flow
Balance of cash and cash
equivalents at end of period

FY 12/19
3,549-1,435
2,114-1,164
8,485

FY 12/20

YOY

-395
-375
-770
-1,035
6,679-3,945+1,060-2,885+129-1,805*Unit: ¥mn

Operating CF and free CF turned negative due to the booking of losses.
The company’s cash position declined.

3. Fiscal Year December 2021 Earnings Estimates
3-1 Consolidated Earnings
Sales
Gross Profit
SG&A
Operating income
Ordinary income
Net income

FY 12/20 (actual)
16,654
8,793
8,689
103
227
-1,183

Ratio to sales
100.0%
52.8%
52.2%
0.6%
1.4%
-

FY 12/21 (forecast)
15,163
8,676
8,268
407
397
245

Ratio to sales
100.0%
57.2%
54.5%
2.7%
2.6%
1.6%

YOY
-9.0%
-1.3%
-4.8%
+292.4%+74.4%-* Unit: ¥mn

Sales forecast to fall 9.0% year on year, while operating income expected to soar 292.4% year on year.
For the fiscal year ending Dec. 2021, sales are estimated to fall 9.0% year on year to 15,163 million yen, while operating income is
projected to soar 292.4% year on year to 407 million yen.
In the Global WiFi business, the company estimates that the number of foreign visitors to Japan and the number of Japanese people
traveling overseas from January 2021 onward will be largely in line with those seen since March 2020, expecting demand to recover8

Bridge Report（9416） March 4 2021

https://www.bridge-salon.jp/

25% vs. 2019 levels from the fourth quarter (from October 2021). Also, as it is unclear how the novel coronavirus pandemic will impact
corporate activities, the company has formulated conservative projections for remote work demand.
For the Information and Communications Service business, the number of newly established corporations is anticipated to either remain
flat year on year or decrease slightly, with the pandemic only expected to have a minor impact on the number of business transactions
thanks to online sales activities. The company plans to expand its business operations, centered on in-house monthly subscription services(recurring revenue), while slightly increasing/maintaining revenue levels for subscription agency operations and telecommunication
device sales (one-off revenue).
It does not expect to book any impairment losses.
Forecast by Segment

Global WiFi
Information and Communications Service
OthersAdjustments
Consolidated net sales
Global WiFi
Information and Communications Service
OthersAdjustments
Consolidated operating income

FY 12/20(actual)
7,278
8,806
580
-10
16,654
-90
1,520
-392
-933
103

Composition
Ratio
43.7%
52.9%
3.5%
100.0%
17.3%
0.6%

FY 12/21(forecast)
5,816
8,927
419
0
15,16377
1,397-11-1,055407

Composition
Ratio
38.4%
58.9%
2.8%
100.0%
1.3%
15.6%
2.7%

YOY
-20.1%+1.4%-27.8%-9.0%-8.1%+292.4%*Unit: ¥mn

The outlook, assumptions, and policies for each segment other than those outlined above are as follows.
Global WiFi business
Sales are estimated to decrease, and operating income to move back into the black.
The company plans to make its domestic operations more profitable and create new businesses and services that make full use of its
customer base (corporate customers that carry out business with overseas companies, individual customers that like traveling, etc.)
The company aims to improve profitability and maintain its competitive edge by continuing the low-cost operation system establishedwhen overseas demand was gradually recovering.
It will move forward with efforts to support next-generation communication standards and technologies (5G, e-sim, etc.).
In addition, the company’s budget factors in the acquisition of orders for the government's GIGA School Concept at the end of March
2021, when the subsidies to local governments will come to an end.
Information and Communications Service business
Sales are estimated to increase, and operating income to decrease.
The company plans to make upfront investments.
It plans to expand its business operations, centered on in-house monthly subscription services (recurring revenue), while slightly
increasing/maintaining revenue levels for subscription agency operations and telecommunication device sales (one-off revenue).
Amid the novel coronavirus pandemic, the company expects only minor impact on sales calls through the utilization of online businessnegotiations.
It will flexibly respond to changes in the external environment by leveraging its strength of having multiple businesses(products/services) and sales channels.
It will aggressively push sales of its monthly subscription website production service “Vision Crafts!”
The company will actively acquire electric power (discount) services centered on store-based businesses.

9Bridge Report（9416） March 4 2021

https://www.bridge-salon.jp/

4. Growth strategy considering the post-pandemic world where people will lead their daily
lives while coping with the novel coronavirus
4-1 Growth strategy
For existing businesses, the company will focus on improving productivity by adapting to an online environment, so-called the New
Normal.
It has set the following key topics: (1) providing products and services that meet the needs of customers and the times, (2) building andstrengthening online sales systems, (3) strengthening up/cross-selling via online business negotiations, etc., (4) brushing up the revenue
structure, and (5) enhancing and expanding in-house services.
As for the creation of new businesses and services, Vision aims to foster businesses that will become a third pillar that utilizes its customer
base that includes corporate customers in the startup growth phase, corporate customers that undergo business with overseas companies,
government offices, local governments and schools, and individual customers that like traveling.
4-2 Specific initiatives
The main initiatives are outlined below.
To actively expand sales of Global WiFi To actively expand sales of domestic plan options for Global WiFi for Biz, which isfor Biz
installed in each corporation for regular use. It can be used for remote work, andacquisitions are solid due to the increased convenience through domestic use.
Although corporate overseas travel is currently stagnant, in order to demonstrate its
competitive edge when travel does recover, the company plans to strengthen its
relationships with corporate customers.
Online learning through the GIGA To contribute to the promotion of online learning as outlined in the GIGA School Concept
School Concept
by providing a wider range of options, such as Wi-Fi router rental, telecommunication
device sales & data communication contracts.
Local governments purchase Wi-Fi routers and distribute them to homes that do not havea Wi-Fi connection.
To strengthen domestic Wi-Fi sales
In addition to strengthening sales expansion of Wi-Fi services for remote work, thecompany will also focus on expanding sales of Wi-Fi services for educational institutions
and local governments. Due to the convenience of being able to rent on a daily basis, theuse of a substitute device when moving and spending time in a hospital is increasing.
Tsuyaku-fukikae.com
Under the slogan “Going beyond the language barrier to make business more global,” thecompany started offering interpreting services for online/offline business negotiations andconferences and video translation/dubbing services. It provides interpreting, translation,and dubbing services that can be used in various business situations at reasonable prices.
The company provides simultaneous and consecutive interpretation of businessnegotiations/meetings with overseas companies and investors at online meetings andconference calls, and also creates dubbed videos.
Vision WiMAX
A sales model service geared toward customers considering the purchase of a Wi-Fi
router, created to meet the needs of people that want to be able to try using a Wi-Fi router
before buying it (the most common answer in a questionnaire targeted at customers after
renting a Wi-Fi router).
Customers will first try out the router by renting it (with a special limited discount), checkthe communication environment, and then purchase the Wi-Fi router that meets theirneeds. Vision trades in the device when the contract is canceled.
In addition, in order to demonstrate its competitive edge when travel does recover, Vision is also moving forward with its convenience
store collection service, where Wi-Fi routers can be collected at Seven-Eleven stores nationwide (except Okinawa), as well as thedevelopment of unmanned shops.
10Bridge Report（9416） March 4 2021

https://www.bridge-salon.jp/

As of the end of Dec. 2020, the company has established unmanned stores at Kitakyushu Airport and Miyako Shimojishima Airport. It
plans to expand the number of such shops going forward.

5. Conclusions
Although sales and profits plummeted, in the fourth quarter the Global WiFi business moved into the black on a monthly basis andcompany-wide profit topped Vision’s projections. It seems that the firm’s swift and unique response to changes in the environment
proved successful. Also, in the Information and Communications Service business, sales dropped slightly, but profits rose thanks to thesteady capture of demand stemming from the novel coronavirus pandemic, with its business portfolio also providing a boost. However,the company is under the impression that the harsh, unclear operating environment will continue in the current fiscal year, and has thus
positioned this term as a year to make preparations to leverage its competitive edge when cross-border travel does recover. In otherwords, it is building a foundation to prepare for its leap to the next stage. With a top-line recovery looking unlikely, our focus will be on
the extent to which Vision can boost profits by improving the productivity of existing businesses.

＜For reference: Initiatives for ESG・SDGs＞
In a desire to contribute to “the future of telecommunication will be for the betterment of everyone’s future,” the company aims toincrease its corporate value and for continuous growth through management and business strategies giving consideration to ESG(“Environment, Social, and Governance.”) Further, it will contribute to the revolution in telecommunications technology and sustainable
development of the society by taking measure to solve major social issues included in the SDGs provided by the United Nations. The
SDGs are global goals intended to be achieved between 2016 and 2030, specified in the “2030 Agenda for Sustainable Development”
adopted in the United Nations Summit held in September 2015.
Environmental

The company has acquired “Green Site License” that offsets carbon emissions via websites and an environmental certification forprevention of global warming by “Green Power” as part of CO2 reduction activities of website. The company carries out informationtransmission, support activities in affected areas, and cooperates with and provides support for “Shinsai Regain,” a specified NPO
supporting various activities, to achieve “realize a society where people can support each other in times of earthquake disasters.”
Furthermore, the company is promoting affordable rental of energy-saving LED lighting and paperless operation within the company.
The company is also operating its business with the minimum necessary amount of property, plant and equipment necessary. At the endof the fiscal year ended December 2020, property, plant and equipment accounted for 3% of total assets, with the company adapting tovarious changes in the environment.
SocialWith health and well-being, the balance between job satisfaction and economic growth, and equality in mind, the company is promoting
measures such as the use of various recruitment channels (fair hiring, referral hiring, employment of female workers (33%), multinational
workers (16.5%), and disabled people), the introduction of a personnel system and its own benefit system in line with the environmentof the times (shorter working hours, shift-work system, flextime system, hydration allowance in summer, flu shots subsidy, etc.). Also,
the company is making efforts to ensure an environment where employees can focus on their work by running “Vision Kinds Nursery,”a company-led nursery and hire human resources with childcare responsibilities and motivation to work, in addition to making work
11

Bridge Report（9416） March 4 2021

https://www.bridge-salon.jp/

rules flexible and enhancing the leave system for employees at the time of childbirth or with small children, in order to support theirchild care and create a working environment with comfort.（established a childcare facility on CLT’s premises, where more than 90% of
the employees are women.）In addition to the above, the company supports the activities of Japan Heart, which works based on the ideaof “delivering medical care to where it does not reach” to realize a society where everyone can receive medical care equally regardlessof their countries, regions, race, politics, religion or circumstances and feel “grateful to have been born,” as one of the corporate members.
GovernanceThe company has obtained “ISO/IEC 27001,” the ISMS international standard, and is taking measures for information assets’ correctand safe handling, operation, monitoring, revision, maintenance, and continuous improvement, in order to protect them within theapplicable range from the threats related to information security.
Furthermore, the company promotes risk management in business activities and thorough compliance to strengthen governanceconsidering the importance to win continuous trust from the stakeholders, and also appoints 3 out of 6 directors from outside (including
one woman) who are enterprise managers, and all 4 auditors too from outside who are accountants or lawyers to ensure transparency
and soundness in management.

＜Reference: Regarding corporate governance＞◎ Organization type, and the composition of directors and auditors
Organization typeCompany with an audit and supervisory board
Directors
6 directors, including 3 outside one
Auditors
4 auditors, including 4 outside ones
◎ Corporate Governance Report ： Updated on September 7, 2020
Basic policy
Our corporate group improves ourselves to change clients’ expectations into impression, pursues innovation without hesitation toactualize the ideal, always feels grateful about the support of many people (stakeholders), and operates its business activities with ahumble mindset. Under this code of conduct, Vision observes laws, in-company regulations, and policies, carries out business in goodfaith, and strives to realize optimal corporate governance.
<Main Reasons for Non-compliance with the Principles of the Corporate Governance Code (Excerpts) >【Principle 4-1-3 Roles and responsibilities of the board of directors (1) (To oversee the planning by a successor to the chief executive
officer and others)】
Under a business environment that will change from time to time, our company will have thorough discussion before appointing top
executives. For instance, in our company the board of directors will designate top executives from candidates who are consideredappropriate for the position in terms of their personality, knowledge, business performance, and other factors, in accordance with ourmanagement philosophy and business strategies. We will hold discussion on supervision of succession planning.
<Disclosure Based on the Principles of the Corporate Governance Code (Excerpts)>【Principle 4-8 Effective utilization of independent outside directors】
In the company, three of the six directors are independent outside directors. We believe that the three independent outside directors willcontribute to strengthening our corporate governance by utilizing their extensive experience in web marketing, inbound business, thefinancial industry, global business, and other areas, as well as their experience as corporate managers, to monitor the company’s
management and provide advice on the company’s overall management.
12

Bridge Report（9416） March 4 2021

https://www.bridge-salon.jp/【Principle 4-9 Criteria for judging the independence of independent outside directors and their qualifications】
The company selects its directors with reference to the Companies Act and the standards established by the Tokyo Stock Exchange. In
addition, the company has selected individuals who can provide advice on all aspects of the company’s management based on theirextensive experience and knowledge.
【Supplementary Principle 4-11-1 Preconditions for ensuring the effectiveness of the board of directors and board of corporate auditors(policies and procedures for the composition and selection of the board of directors)】
The company’s board of directors consists of internal directors who are well versed in the company’s business and operations, andexternal directors who have a wealth of experience and a broad range of knowledge to ensure a balance and diversity of knowledge,
experience, and abilities across the board.
【Supplementary principle 4-11-2 Preconditions for ensuring the effectiveness of the board of directors and board of corporate auditors(concurrent positions of directors and corporate auditors)】
Directors and corporate auditors allocate the time and efforts necessary to properly perform their roles and responsibilities to their duties
as directors and corporate auditors, and their concurrent positions are within a reasonable range. The status of their concurrent positions
is disclosed in the reference document of the notice of the general meeting of shareholders, the business report, and the annual securities
report.
【Supplementary Principle 4-11-3 Preconditions for ensuring the effectiveness of the board of directors and board of corporate auditors(analysis and evaluation related to the effectiveness of the board of directors)】
Based on the current status of comments and discussions on the board including the outside directors and outside corporate auditors, we
believe that the effectiveness of the company’s board of directors is maintained. In addition, each director is asked to complete a selfevaluation questionnaire, the results of which are confirmed by the external auditors, in an effort to further improve the effectiveness andfunctions of the system.
【Principle 5-1 Policy for constructive dialogue with shareholders】
If shareholders or others want to have a dialogue with Vision, the company will respond positively within a reasonable range, tocontribute to the sustainable growth of the company and the medium to long-term improvement in corporate value. As of now, Visionholds a briefing session attended by the president or a director in charge of IR two or more times per year, meetings with institutional
investors domestic and foreign, briefing sessions for individual investors several times a year, and so on. The information on their results
is properly shared through meetings of the board of directors, etc. In addition, Vision takes thoroughgoing measures for preventing theleakage of insider information.

This report is intended solely for information purposes, and is not intended as a solicitation for investment. The information and opinions contained within
this report are made by our company based on data made publicly available, and the information within this report comes from sources that we judge to bereliable. However, we cannot wholly guarantee the accuracy or completeness of the data. This report is not a guarantee of the accuracy, completeness orvalidity of said information and opinions, nor do we bear any responsibility for the same. All rights pertaining to this report belong to Investment Bridge Co.,
Ltd., which may change the contents thereof at any time without prior notice. All investment decisions are the responsibility of the individual and should bemade only after proper consideration.
Copyright(C) 2021 Investment Bridge Co.,Ltd. All Rights Reserved.

For back numbers of Bridge Reports on Vison Inc. (9416) and Bridge Salon(IR seminar), please go to our website at the following URL:
http://www.bridge-salon.jp/

13