3rd Quarter FY2017

Financial Results
November 9, 2017
Vision Inc.
(1st Section of the Tokyo Stock Exchange, code： 9416)

The opinions and forecasts provided in this document are our decision in time of writing,they do not guarantee the accuracy of the information.
Due to changes in various factors, please note there is a possibility that is different from the actual results.

3Q FY2017 Financial Results• Performance Highlights and 3Q FY2017 Actual Results• FY2017 Outlook of Financial Results• APPENDIX• VISION INC.

Business Summary• Segment Overview, Growth Strategy: “GLOBAL WiFi” Business• Segment Overview, Growth Strategy: Information andCommunications Service Business

Copyright(C) 2017 VISION INC. All Rights Reserved.

2

Performance Highlights and 3Q FY2017 Actual Results

Copyright(C) 2017 VISION INC. All Rights Reserved.

3

Performance Highlights (3Q FY2017)• Both sales and each profit are the highest ever in the same
cumulative period.
– Sales JPY13,177mn（+19.4％ YoY）
– Operating profit JPY1,539mn（+43.1％ YoY）
– Net income JPY1,039mn（+51.9％ YoY）

• “GLOBAL WiFi” Business：− Segment profit JPY1,368mn（+53.0％ YoY）
• A busy season when travel demand increases. Steady performance, andsignificant increases in sales and profits.
• Despite of the decrease in ARPU due to the increase in personal usage ratio,
greatly increase due to customer acquisition enhancement in each sales channel.
• By improving cost efficiency and SG&A expenses ratio, improve profitability.

• Information and Communications Service Business：– Segment profit JPY886mn（+10.1％ YoY）
• Continue to perform well due to acquiring newly established companies andaccumulating continuous dealings by CRM.
Copyright(C) 2017 VISION INC. All Rights Reserved.

4

3Q FY2017 Overview of Financial Results (Cons.)
Record high. Sales: +19.4％ YoY, and Operating profit: +43.1％ YoY.
(JPYmn, %)FY2017/3Q Actual result

Account title

AmountComposition
ratio

Increase or decrease

AmountIncrease or
decrease ratio

13,177100.0+2,141+19.4

11,035100.0+1,828

+19.9

7,641

58.0

+1,236

+19.3

6,405

58.0

+1,270

+24.7

1,539

11.7

+463

+43.1

1,075

9.7

+399

+59.0

1,540

11.7

+495

+47.4

FY2016/3Q Actual result

1,045

9.5

+317

+43.7

Net income attributable toparent company shareholders

1,039

7.9

+355

+51.9

FY2016/3Q Actual result

683

6.2

+157

+29.9

Sales
FY2016/3Q Actual result

Gross profit
FY2016/3Q Actual result

Operating profit
FY2016/3Q Actual result

Recurring profit

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5

Operating Profit Increase Factor
SG&A-to-sales ratio –2.0% YoY, and Operating profit margin +2.0% YoY.
– Along with the strong sales, sales efficiency improves.
– Improve shipping operation efficiency by utilizing CLOUD WiFi etc., andimprove cost efficiency.

+905+2,141Gross profit
JPY7,641mn+772Operating profit
margin +2.0％

1,075

Operatingprofit margin
9.7％

FY2016/3Q

SG&A-to-sales ratio-2.0％

Increase sales

Increase cost

(JPYmn)Increase SG&A expenses

Copyright(C) 2017 VISION INC. All Rights Reserved.

1,539
Operatingprofit margin
11.7％

FY2017/3Q
6

Segment Actual Result and Overview(JPNmn, %)Sales

FY2016/3Q
Actual result

AmountAmountIncrease or decrease
AmountIncrease or
decrease ratio“GLOBAL WiFi”

7,755

5,808

+1,947+33.5

Information andCommunications Service

5,379

5,217

+161

+3.1

13,134

11,025+2,108+19.1

Others439+33+336.6

Adjustment amount

－

－

－

－

Total (Cons.)

13,177

11,035+2,141+19.4“GLOBAL WiFi”

1,368

894

+474

+53.0

886

805

+81

+10.1

Subtotal

2,255

1,699

+555

+32.7

Others

△70

△36

△33

△92.9

Adjustment amount

△645

△587

△57

△9.8

Total (Cons.)

1,539

1,075

+463

+43.1

Subtotal

Information andCommunications Service
Segment
profit

FY2017/3Q
Actual result

Copyright(C) 2017 VISION INC. All Rights Reserved.

7

“GLOBAL WiFi” BusinessTransition of Performance
3Q is a busy season when travel demand increases. Steady performance, andsignificant increases in sales and profits.
–––

Capture FIT demand, acquire more corporate customers, and accumulate repeat users.
Expansion of the inbound market, operation bases are strong. (South Korea, Taiwan,
domestic airport, etc.)
Improve cost efficiency and SG&A expenses ratio.

1Q
2Q
3Q
4Q

SALES
7,882

7,755

+30.6%

2,073

6,035
+31.0%

5,808

3,022

+86.7%

2,226

1,781
FY2016+53.0%

245

631

494

271

894

114

479

1,308

FY2015+92.2%

593

1,697(JPYmn)

1,368
1,140

2,329

1,826

1,297

SEGMENT PROFIT+33.5%

1,602

4,432

1Q
2Q
3Q
4Q

2,505

FY2017

256

146

60
162

252

FY2015FY2016466

FY2017(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) 2017 VISION INC. All Rights Reserved.

8

Information and Communications Service BusinessTransition of Performance
Continue to increase sales and profit.
––

Continue to perform well due to acquiring newly established companies, which are ourmain targets.
Continue to perform well due to accumulating continuous dealings by CRM.
••

Structure of continuous stock model.
Further sales increase by up/cross-sell strategy.
–

1Q
2Q
3Q
4Q

Offer services tailored to customer’s needs, such as power service “Haruene Denki” etc.

1Q
2Q
3Q
4Q

SALES

6,440

+7.9%

6,948

+13.4%

903

1,730
1,673
3,166

+9.4%

5,217

+3.1%

5,379

1,749

1,786

1,764

1,782

1,536

1,703

1,810

FY2015FY2016FY2017

1,601
1,629

SEGMENT PROFIT

214+16.8%

689(JPYmn)

1,024
219
805

244

886
+10.1%

287

221
296

316

264

282

FY2016FY2017269

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) 2017 VISION INC. All Rights Reserved.

9

Consolidated Balance Sheet(JPYmn, %)FY2017/3Q

FY2016Compared to the previous
consolidated fiscal year end

AmountAmountIncrease or
decrease

Increase or
decrease ratio

AssetsCurrent assets

8,772

8,129

+642

+7.9

6,278

6,241

+36

+0.6

2,323

1,805

+518

+28.7

Tangible fixed assets

605

480

+124

+26.0

Intangible fixed assets

577

423

+154

+36.6

11,095

9,935+1,160

+11.7

2,705

2,600

+105

+4.0

Fixed liabilities

3

22

△19

△85.5

【Total liabilities】

2,708

2,623

+85

+3.3

8,387

7,312

+1,075

+14.7

75.6

73.6

+2.0

－

Cash and deposits
Fixed assets【Total assets】
Liabilities

Current liabilities

Net assets【Total net assets】
Equity ratio

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10

FY2017 Outlook of Financial Results

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11

FY2017 Forecast of Financial Results
Anticipate Sales +12.6%, and Operating profit JPY1.6bn (+24.5% ).
(JPNmn, %)FY2017 Forecast

Account title

AmountIncrease or decrease

Composition
ratio

AmountIncrease or
decrease ratio

16,713100.0+1,869+12.6

14,843100.0+2,358

+18.9

9,825

58.8

+1,203

+14.0

8,622

58.1

+1,712

+24.8

1,606

9.6

+315

+24.5

1,290

8.7

+485

+60.3

1,608

9.6

+310

+23.9

FY2016 Actual result

1,298

8.7

+490

+60.8

Net income attributable toparent company shareholders

1,045

6.3

+231

+28.5

FY2016 Actual result

813

5.5

+228

+39.0

Sales
FY2016 Actual result

Gross profit
FY2016 Actual result

Operating profit
FY2016 Actual result

Recurring profit

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12

Transition of Performance
Steady progress against the full-year forecast.

SALES
1Q
2Q
3Q
4Q

16,713 (Forecast)
14,843
12,485
3,277

Progress ratio
73.7％

3,807
Progress ratio
74.3％

3,535

FY2015FY20164,326

FY2017FY2015

95.8％
688

517
336
245

169
202

Progress ratio

Progress ratio
83.4％

Progress ratio
84.0％

304

3,465
2,940

66

214
804
128

4,024

1,606 (Forecast)
1,290

78.8％
4,827

3,429

2,836

1Q
2Q
3Q
4Q

Progress ratio

4,083

3,487

(JPYmn)OPERATING PROFIT

513
313
FY2016FY2017(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) 2017 VISION INC. All Rights Reserved.

13

Contributing to the Information and Communications Revolution

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14

APPENDIX

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15

Performance Data
Sales

Gross profit

Gross profit

16,713

9,825

Gross profit ratio

8,622

14,843
6,909

12,4859,203

FY2013

10,185FY2014

5,651

5,198

FY2015FY2016FY2017(Forecast)

56.5

55.5

55.3

FY2013

FY2014FY2015

SG&A expenses
SG&A expenses ratio

8,219

FY2017(Forecast)

1,606

Operating profit ratio

1,290

6,105
804

56.4

8.7

52.7
48.9

49.4

286

49.2
10
0.1

FY2013

FY2016

58.8

Operating profit

7,332
5,635

58.1

Operating profit

SG&A expenses

5,188(JPYmn, %)FY2014FY2015FY2016FY2017(Forecast)

FY2013

9.6

6.4

2.8
FY2014

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FY2015FY2016FY2017(Forecast)16

“GLOBAL WiFi” BusinessTransition of the Rental Number
Steady growth in overseas use, Japan domestic use, and overseas business.
Potential market size is large, and room of development is extremely large.

(Rental number)

1,144,045
Overseas business (Except for use in Japan: Overseas ⇒ Overseas)
Japan domestic use (Inbound: Overseas ⇒ Japan, incl. Japanese)
Overseas use (Outbound: Japan ⇒ Oversea)

66,556

190,665

783,050

736,050

43,66990,90632,468
127,890

516,199
17,73435,512

241,737
55,5076,236
244
49,027FY2012

10,5207,511

886,824
648,475

575,692

462,953

223,706
FY2013

FY2014FY2015

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FY2016FY2017 2Q(Cumulative total)

17

“GLOBAL WiFi” Business
Customer Attributes (Past Cumulative Total)
5.0%

1.6%

By age0.8%

By gender, corporate / individual

5.6%
12.8%

8.7%

20.9%
14.0%

9.2%

11.7%
14.9%

12.0%

31.0%

12.9%
Under 18

19-24

25-29

30-34

35-39

45-49

50-54

55-59

Over 60

Unknown

40-44

By age (Male)

1.3%

38.9%

3.5%

3.8%

3.4%

0.3%

Individual / Female

Individual / Male

Corporate / Female

Corporate / Male

0.3%

3.6%

2.3%

8.9%

4.7%

7.4%

8.4%

4.8%

6.9%
7.4%

7.3%
Under 18

19-24

25-29

30-34

35-39

45-49

50-54

55-59

Over 60

Unknown

5.5%

40-44

0.5%

1.4%

5.6%

5.1%

By age (Female)

7.5%

Under 18

19-24

25-29

30-34

35-39

45-49

50-54

55-59

Over 60

Unknown

Copyright(C) 2017 VISION INC. All Rights Reserved.

40-44
18

Business Summary

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19

VISION INC.

Listed with 1st Section of Tokyo Stock Exchange

Incorporated

December 4, 2001 (Founded June 1, 1995)

Management
Philosophy

Contributing to the Information and Communications Revolution

Head Office

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

Employees

Domestic: 623

Global: 76(As of September 30, 2017)

AffiliatedCompanies

Domestic: 2

Global: 12(As of September 30, 2017)

Business

GLOBAL WiFi
Mobile Wi-Fi router rental service

Information and Communications Service
Information and communications-related distributor

Copyright(C) 2017 VISION INC. All Rights Reserved.

20

Profile of Vision Group••••VISION MOBILE USA CORP.

VISION MOBILE NEW CALEDONIA SAS

Domestic Affiliated Companies： 2
Domestic Operation Bases： 10
Domestic Airport Counter： 14
Global Affiliated Companies： 12
October, 2011 Korea
USA, Hawaii
December, 2011 Hong Kong
January, 2012 Singapore
February, 2012 Taiwan
April, 2012 The United
Kingdom
March, 2014 Vietnam
April, 2014 China, Shanghai
November, 2014 France
December, 2014 Italy
July, 2016 USA, California
August, 2016 New Caledonia

Copyright(C) 2017 VISION INC. All Rights Reserved.

21

History
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 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

2006

2007

Opened Fukuoka Office, Kansai Office andYokohama OfficeOpened Shinjuku Office and Nagoya Office2009 Opened Naha Office2011 Opened Sapporo OfficeOpened Saga Vision Future Business Center (VFBC)
Established Overseas subsidiaries（Korea, Hawaii, Hong Kong）
2012

Opened Narita Office
Established Overseas subsidiaries (Singapore, Taiwan, UK）

2014

Opened Rinku Office
Established Overseas subsidiaries (Vietnam, China, France, Italy）

2016

Established Overseas subsidiaries (USA California, New
Caledonia）

Copyright(C) 2017 VISION INC. All Rights Reserved.

22

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) 2017 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 business

23

Medium-Term Profit Growth Image
Steadily promote the growth strategies of the two main business segments.
• “GLOBAL WiFi” Business
Customer Foundation– ①Expansion (Market development = Growth at each stage, global expansion)– ②Stability (Improve profitability)– ③Utilization (Business development = Travel related service platform)•

Information and Communications Service Business– Enhance distribution channel.
– Enhance products, services, and business models.
“GLOBAL WiFi”
Travel related
service platform【3rd stage】 Overseas⇒Overseas【2nd stage】 Inbound【1st stage】 OutboundInformation and Communications
ServiceEnhance distribution channel
Enhance product, service, business model
Copyright(C) 2017 VISION INC. All Rights Reserved.

24

Segment Summary & Growth Strategy“GLOBAL WiFi” Business

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25

“GLOBAL WiFi”•••“NINJA WiFi”

Offer anytime, anywhere, safe, secure and comfortable mobile Internet
environment all over the world.
Rental service, costs only when traveling.
Can connect with multiple users and multiple devices (smartphone, PC, etc.).

＜Haneda Airport Counter＞

Order and payment
Order through the web.
Payment is made by credit
card at the time of order.

Receive routerUse overseas

Return router

Collect the router at an airport
in Japan or receive it bydelivery, or in your destination
country.

Enjoy the Internet while you
are overseas. The Wi-Fi
settings are easy to configure.

Return the router at an airport
in Japan or by delivery, or inyour destination country.

Beforetraveling
Beforetraveling

While traveling

Copyright(C) 2017 VISION INC. All Rights Reserved.

After traveling26

“GLOBAL WiFi” “NINJA WiFi”
Service and Competitive Advantage

Less Expensive
Fixed-rate

Maximum cost benefits ▲８９．９％

 AreasAvailable in over 200 countries and regions
worldwide, leading the industry in the number
Comfortable

High-speed communications in partnership with
telecom carriers around the world・300 yen/day～* Japanese cellphone companies' fixed-rate discount ratio

Safe
SecureSecure, and 51 support bases available 24 hours aday, 365 days a year, around the world

 Counter

Number of airport counter is the industry's largest
class



Corporate

 Sales

Uptake ability of corporate needs

Customer

Number of users is the industry's largest class
Copyright(C) 2017 VISION INC. All Rights Reserved.

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

27

“GLOBAL WiFi” Business Business Model

Available in over 200 countries and regions worldwide

Direct website
Apps
Affiliates
Corporate sales
Partners
Airport counters

Shipping
ReturnPayment

Payment

Rental fees

Secure51 support bases available 24 hours aday, 365 days a year, around the world

Uptake ability of corporate needs

Settlement service
providersData
communication
service

Vision GroupWorldwide
telecommunications
companies

High-speed communications in partnership with telecom
carriers around the world

End Users

Maximum cost benefits ▲89.9％* Flat-rate roaming service ratio by
Japanese cellphone companies

Number of users is the industry's largest class

Number of airport counter is the industry's
largest class
Copyright(C) 2017 VISION INC. All Rights Reserved.

28

Internet Connection* Created by our research and standard“Global WiFi” “NINJA WiFi” is the best way to use internet for everyone.

Internetconnection
Wi-Fi Spot
(Hotel, Cafe,etc.)

Roaming

Price

Area toconnect

SpeedManagement

Security

○

×

△

○

×

Problem with Security (Hacking), Coverage (Not available during the move).

×

△

△

○

○

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

Prepaid SIM

△

△

○

×

○

Need to know how to manage (set-up, activation, recharge…), cannot use own TEL
number when swap SIM.

○

○

○

○

○

Best quality subscriber in each local area.
Low Price, Secure, Safe, Available to connect anywhere.
Easy to set-up, Easy to manage.
Copyright(C) 2017 VISION INC. All Rights Reserved.

29

“GLOBAL WiFi” Business

Growth Story

Our utilization ratio in the Japanese market (overseas travelers“GLOBAL WiFi” utilization ratio) ※Overseas use share (Outbound)
Domestic use share (Inbound + Japanese)
Share in the Japanese market (Out + In)

Offer internet infrastructure + service

8.3%

0.4%
0.3%
0.0%

1.4%
0.2%

0.7%

3.5%
1.2%

4.7%

2.4%

2.1%

Overseas use (Outbound)

Offer services to solve problems－Renal service of wearable translation device “ili”－Overseas restaurant reservation service etc.

190,665

783,050

736,050

43,66932,46890,906

127,890

516,199
17,73435,512

241,737
55,507
6,236
244

10,5207,511

886,824
648,475

575,692

462,953

Accumulate repeater
High loyalty customer accumulation CRM ⇒ Suppress promotion expenses,
stable revenue＊Repeater ratio ... Over 50% of orders

High ARPU, less seasonality, frequent repeat* FY2017/3Q cumulative corporate utilization ratio ... 43.6%, amount 50.4%

Improve profit margin
Increase ARPU (up/cross selling), improve cost efficiency and SG&A
expenses ratio<Reference> Segment profit margin* FY2016/3Q 15.4% → FY2017/3Q 17.6% (+2.2%)

223,706

FY2013② Stabilize Customer
Foundation/Improve
Profitability

Capture corporate demand

49,027FY2012

Offer activity support information at travel destination⇒ Information provider = destination of customer =advertiser(Guidebook, distribution of promotional materials, Video
distribution, facility, SNS, email, etc.)

Useful services

66,556

Overseas business (Except for use in Japan,
Overseas⇒Overseas)
Domestic use (Inbound + Japanese)① ExpandCustomerFoundation/MarketDevelopment

1,144,045

Rental number ※Useful information (media)

5.7%

4.4%
2.7%

Travel related service platform

11.0%

6.4%
2.0%

③ Develop Business to Use
Customer Foundation

FY2014FY2015FY2016※Created from Japan Tourism Agency material by us

FY2017 2Q
Copyright(C) 2017 VISION INC. All Rights Reserved.

30

Growth Strategy ①
Expand Customer Foundation/Market Development○Global expansion•

Accelerate business development at each stage.
––

Capture (1) “outbound” and (2) “inbound” in Japan.
Capture the needs of (3) the huge market “overseas to overseas” through overseas expansion.
•

In addition to demand countries such as Korea and Taiwan, service started in Los Angeles(November 2016).

Japanese potential market size ※41.15mn people
JPY288bn＊Inbound＋Outbound=24.03mn people+17.11mn people(FY2016 Actual result)

3.4%

3.4％

Worldwide potential
market size

Vision Group bases(As of September 2017)

1.2bn people
JPY8.4tn※ Referring to materials by Tourism Authority and United Nations World Tourism Organization(UNWTO), estimate from Average Revenue Per User of our customer
Copyright(C) 2017 VISION INC. All Rights Reserved.

31

Market Size of “GLOBAL WiFi” Business (Japan)•

Inbound (Overseas travelers to Japan)： Over 24mn people for a year–––

Potential market size： approx. JPY168.2bn ※The government's target is 40mn people in 2020.
Expenditure on visit to Japan： approx. JPY140,000/p.
＊Expenditure in Japan excluding transportation expenses to come and return•

Outbound (Japan→Overseas)： Remained at around 17mn people.
–

Potential market size： approx. JPY119.8bn ※–Expenditure at destination： approx. JPY90,000/p.

(‘000 people)＊Expenditure excluding transportation expenses to destination

60,000Inbound
Outbound

40,00019,737
8,611

6,218

8,358

10,36324,03913,413
Approx. 17mn people
17,500(slightly increasing trend)

16,637 16,994 18,490 17,472 16,903 16,212 17,116
2010

2011

2012

2013

2014

2015

2016

17,300

～

2020

～

2030

Created from March 2016 Japan Tourism Agency materials “Advisory Council on Tourism Nation Promotion”, and January 2017 JNTO press releasematerials ※Estimate from Average Revenue Per User of our customer
Copyright(C) 2017 VISION INC. All Rights Reserved.
32

Market Size of “GLOBAL WiFi” Business(Overseas Travelers in the World)••

Global travelers from overseas to overseas are the huge market of 1.2bn
people scale.
Potential market size： approx. JPY8tn and more ※

2,000
(mn
people)International tourist arrivals
1,800

1,800

1,600

1,400

1,200

1,000

949

993

1,039

1,087

1,133

1,184

1,235

Potential market size： approx. JPY8.4tn *＝＠JPY7,000 x approx. 1.2bn people

800

2010年

2011年

2012年

2013年

2014年

2015年

2016年

～

2030年

Created from Japan Tourism Agency materials, Heisei29 edition tourism white paper, and the materials released by UNWTO* Estimate from Average Revenue Per User of our customer
Copyright(C) 2017 VISION INC. All Rights Reserved.

33

Growth Strategy ②
Stabilize Customer Foundation/Improve Profitability○Capture corporate demand
3Q FY2017(Jul.-Sep.) Actual result
Rental number

AmountCorporate
Individual

40.6%

46.7%

53.3%

59.4%

FY2017 Cumulative total(Jan.-Sep.) Actual result

Corporate
Individual

Rental number

AmountCorporate
Individual

43.6%
56.4%

49.6%

Copyright(C) 2017 VISION INC. All Rights Reserved.

Corporate
Individual

50.4%

34

Growth Strategy ②
Stabilize Customer Foundation/Improve Profitability○Utilizing CLOUD WiFi
A Wi-Fi router equipped with next-generation communication technology that manages SIM
on the cloud.
•Labor saving of shipping operation = Shipment related cost down–•

Introduce to approx. 20% of Wi-Fi routers we own. (As of September 2017)

Develop the corporate limited plan "GLOBAL WiFi for Biz".
−

No need to order and receive a router for each use (keep it in the customer's company)

Store SIMs all over
the world on the cloudConnect to a
network in Korea

Connect to a
network in France

Connect to a
network in USA

Internet anywhere in the world with one device
CLOUD WiFi technology
With next-generation communication technology tomanage SIM on the cloud, telecommunication
carriers all over the world can be allocated without
physically inserting SIM.
Copyright(C) 2017 VISION INC. All Rights Reserved.

35

Growth Strategy ③
Use Customer Foundation/Develop Business○Travel rapprox.elated service platform
Use existing customer foundation and offer useful information/service to solve problems during
overseas travel.

•【1】Useful information (media)【2】Useful service

FY2017 Cumulative total (Jan.-Jun.) actual results
Japan Total approx. 1.25mn people/8.77mn nights

Overseas
travelers* FY2016 actual results: approx. 1.92mn people/13.44mn nights (annual)* Our research
Advertising
revenue
improvement

ARPU
improvement

Useful services

Touristattractions

Golf
courses

Web, App,Movie “DOGA.TV”“Kabuki-jo”
Rentalcars

Tours

Counter

Insurance

Coupons

Shop &
Hotel & Duty-free
Minpaku
shop

Payment
platform

Guidebook“SHINOBI”

あなたにおすすめのレストラン

Payment
platform

GourmetGuide customers
to allied
partners

Useful information (media)

予約する

Rental service ofOverseas restaurant
reservation service wearable translation
device “ili”* Outbound (approx. 1.42mn people/9.94mn nights) + Inbound (approx. 0.5mn
people/3.5mn nights)
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36

Travel Related Service Platform•

Inbound comprehensive advertisement “NINJA MEDIA”– Marketing and advertisement for foreign tourists.
– Utilize customer foundation (foreign tourists visiting Japan).
– Approach with all "timing" when traveling in Japan.
Before traveling: Collect information, prepare for travel
While traveling: Airport, moving, sightseeing,
lodging
After traveling: After returning home•

Translation device “ili” ～for corporate～“ili for Guest”

Copyright(C) 2017 VISION INC. All Rights Reserved.

37

Travel Related Service Platform•

Rental service of wearable translation device “ili”.
− Available in Japanese, English, Chinese, and Korean. (Spanish, and Thai being prepared)•

Sell licenses for corporate customers who develop business for foreign travelers
visiting Japan.
––

Have multilingual support, eliminate opportunity losses, and provide satisfaction.
Suggest usage scenes for overseas travelers and foreign travelers visiting Japan.
”ili for Guest”“Communication with staffs of facilities etc. during the stay” Trouble… 32.9%〔*1〕ン」不満足... 50.0%〔*2〕〔*1〕 Japan Tourism Agency “Questionnaire on Improvement of Accepting
Environment in Japan by Foreign Travelers Visiting Japan” (February 2017)
Copyright(C) 2017 VISION INC. All Rights Reserved.

38

Travel Related Service Platform•

Media 「NINJA WiFi Travel Guide“SHINOBI”」–––

Guide book delivered directly to overseas
travelers to Japan who use “NINJA WiFi.”
Advertising model.
Collaborate with digital media.

○Benefits of posted companies andfacilities：–––

Rare advertisement for FIT (Foreign
Independent Tour) customers.
Deliver directly ＝ Reach surely.
“NINJA WiFi” users ＝ internet available＝ action (coming to a shop, reservation,
application, etc.) rate is high.

•Video media 「DOGA.TV」
https://doga-tv.com/–––

Video specialty website for foreign
tourists.
Advertising model.
Produced by Youtuber employees.

○Benefits of posted companies andfacilities：–––

Offer all elements related to postingfrom video production (planning,production, casting, translation, andmarketing).
Watched by “NINJA WiFi” users ＝
Probability of attracting is high.
Possible to collaborate with “SHINOBI”.

Copyright(C) 2017 VISION INC. All Rights Reserved.

39

Travel Related Service Platform• Example of collaboration with MINISTOP
Renewal・Appeal text

Deliver (directly)

・Service contents

Deliver a Video

Discuss

Our staff discusses with their
PR dept. based on theaggregated data
・Propose an appealing method
corresponding to cultural (language)
difference
・Propose change of service
contents due to usage frequency
etc.

Use coupon

Aggregate data
・Analysis
Copyright(C) 2017 VISION INC. All Rights Reserved.

Convert into data with barcode
・When (period)
・Which store in Japan・Which language (available in 4
languages)
・ How many coupons are used40

Travel Related Service Platform•

Inbound sightseeing building「」 (Open in June 2017)＜ 1st floor ＞
Inbound service information center「KABUKI-JO」* Our service and affiliated inbound services

・Tourist attractions information of various parts of Tokyo,
gourmet guide
・”NINJA WiFi” and “ili” rental service
・「NINJA WiFi Travel Guide “SHINOBI”」distribution, 「DOGA.TV」 information
・Introduction and sales of tourist place's local specialty etc.
・Guide matching service for foreign travelers visiting Japan “TOMODACHI GUIDE”
・ Foreign currency exchange, Pocket Change (services that can convert foreign currency into electronicmoney) installation
・ Activity space to try a variety of different traditional culture＜ 2nd floor, 3rd floor, rooftop ＞
Japanese pub with the theme of “Japan” called 「Washoku Sakedokoro Kabuki-jo」, offer Japanese sake directlysent from a sake brewery.
「Activity space」
daily activity plan

＜ 1st basement ＞
Coworking space「Terakoya」
Copyright(C) 2017 VISION INC. All Rights Reserved.

41

Travel Related Service Platform•

Capital and business alliance with UROAMEDIA (August 2017)––

Collaborating with Japanese, Chinese, and Korean No. 1 class Wi-Fi router rental
service operators, possible to reach overwhelming number of overseas travelers.
Aim to improve the media value and sell comprehensive advertisements.

“GLOBAL WiFi”“NINJA G
WiFi” users“UROAMING” users“WiFi Take-Out” users

Improve the media value

Guidebook

Promotional
materials

Video

Facility

SNS

Email

etc.
Copyright(C) 2017 VISION INC. All Rights Reserved.

45

Segment Summary & Growth Strategy
Information and Communications Service Business

Copyright(C) 2017 VISION INC. All Rights Reserved.

43

Information and Communications Service•

Offer the most suitable information and communications-related
products and services tailored to the stage and needs of the company.

.com
Telephone Line Cellphone
Arrangements Support

OfficeAutomation

Website Support

Copyright(C) 2017 VISION INC. All Rights Reserved.

Security

44

Information and Communications Service

 Start-up
Companies

Have new dealings with annual total 18,000 or more
newly established companies *※National corporate registration number ... 114,343 （2016）
Source： Ministry of Justice*Total number of companies established within 6 months (including sole proprietors), starting
business with us (our research)

ＷＥＢ
Strategy Customer• Loyalty

Ability to attract customers due to our own WEB
marketing (media strategy)

CRM strategy, our own know-how
・Maximization of continued revenue ＝ Stock business
・Up/Cross Selling which is high productivity

Copyright(C) 2017 VISION INC. All Rights Reserved.

45

Information and Communications Service Business
Growth Strategy ①○Newly established companies (Startup companies)•••

The main target is newly established companies with high growth potential.
Thanks to the policy, the number of foundations in Japan has increased.
We will take advantage of our strengths to acquire customers and continue therelations.
Newly established companies we acquire(* New customers)(FY2016)

Percentage of
one company
to approx. 6companies

18,966(FY2015)

18,232* Total number of companies established within 6months (including sole proprietors), starting
business with us (our research)

National corporate registration number ※(FY2016)

114,343(FY2015)

111,238※ Create from the number of incorporated company statistics by Ministry of JusticeCopyright(C) 2017 VISION INC. All Rights Reserved.

46

Information and Communications Service Business
Growth Strategy ②○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
Optimum
solutions

Further growth
stage

Early growthstage
Startupstage

Current main targets:

Future targets:

Growth candidates

Enterprises in growth stages

Copyright(C) 2017 VISION INC. All Rights Reserved.

47

Information and Communications Service Business
Growth Strategy ③○ High productivity model
Web marketing × Sales rep × CLT (Customer Loyalty Team)•••Web marketing： Attract customers’ outstanding demands by our original know-how.
Sales rep： Professional group to acquire efficiently + escalation of additional needs.
CLT： Continue dealings and collect additional needs by customer follow-up.
New customers

Acquire outstanding
demands with highlikelihood

Proposalwith highprecision

Existing customers

Hear customers'
problems and
needs

￥

Cooperation

Cooperation

CLT (Customer
Loyalty Team)Web marketing
team

Sales rep
Copyright(C) 2017 VISION INC. All Rights Reserved.

48

Information and Communications Service Business
Strengthen Products and Services•「Bimake（Vision Business Market）」
https://vision-bizmarket.com/– “Comprehensive support website for companies” that fully supports allcompanies’ business.
– For our main targets, startup, small and medium-sized, and venturecompanies.
– Also attract customers who are preparing to establish company.
– Offer our services and tie-up partner’s products with useful information.

Copyright(C) 2017 VISION INC. All Rights Reserved.

49

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) 2017 VISION INC. All Rights Reserved.

50

Contributing to the Information and Communications Revolution

Copyright(C) 2017 VISION INC. All Rights Reserved.

51