3rd Quarter FY2020

Financial Results

November 9, 2020
Vision Inc.
(1st Section of the Tokyo Stock Exchange, code： 9416)

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

3Q FY2020 Financial Results

Performance Highlights and 3Q FY2020 Results

P.3

FY2020 Forecast of Financial Results

P.10

Efforts to Make in FY2020 (Growth Strategy Focusing
on with COVID-19 and after COVID-19)

P.14

Sustainable Growth and Corporate Value Improvement- ESG Activities -P.37

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

2

Performance Highlights and 3Q FY2020 Results

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

3

Consolidated Profit and Loss Statement(JPYmn, %)FY2020/3Q
Result

FY2019/3Q
ResultChangeYoY

13,10820,547-7,439-36.2

Cost of sales

6,284

8,576

-2,292-26.7

Gross profit

6,824

11,970-5,146-43.0

Gross profit margin

52.1

58.3

-6.2

－

SG&A expenses

6,765

9,000

-2,234-24.8

SG&A-to-sales ratio

51.6

43.8

+7.8

－

-847

3,746

-4,594－

Operating profit

58

2,970

-2,912-98.0

Operating profit margin

0.4

14.5

-14.0

－

Recurring profit

167

3,011

-2,844-94.4-1,226

1,986-3,213

－

Items
Sales

EBITDA

Profit or loss (-) attributableto owners of parent

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

4

Factors for Change in Operating Profit
Sales“GLOBAL WiFi” Business: Actively acquire the needs for using mobile Wi-Fi in Japan. Recover until just before turning profitable in asingle month. Outbound and inbound rentals continue to be almost zero (July to September).
Information and Communications Service Business: Recover to the same level of profitability as the previous fiscal year by utilizing
online business negotiations, etc. Sales of cost reduction products and mobile communication equipment (for teleworking, etc.) arestrong.
Cost of sales“GLOBAL WiFi” Business: Overseas communication costs are significantly reduced due to pay-as-you-go contracts in which charges
are incurred according to communication usage.
Information and Communications Service Business: Increase cost of sales-to-sales ratio due to increased sales of mobile
communication equipment (by increasing the ratio of products that are purchased).
SG&A expenses
Personnel expenses: Decrease performance-linked allowance. Terminate temporary staff contracts (expire contracts) due to asignificant decrease in the number of rentals (shipping center staffs and airport counter staffs, etc.).
Advertising expenses: Reduce advertising expenses for websites to meet demand (listing, etc.).
Other SG&A expenses: Review and reduce various costs. Decrease expenses linked to decrease in sales (shipping expenses, travel
expenses, supplies expenses, payment fees, etc.).
Others: Decrease corporate and business maintenance costs, because all shares of ProDrivers Inc. have been transferred in August
2020.
Operating profit
From July 2020, become profitable in a single month. Operating profit margin 0.4% (Approx. -14.0% points YoY)

2,970
2,970
2,970

(JPYmn)-7,412-7,439-7,439Operating profit

FY2019/3Q

Sales+1,176
+559

+499

58

+1,175+2,265+2,292+2,265
Cost of sales

Personnel

Advertising

Other SG&A

Operating profit

expenses

expenses

expenses

FY2020/3Q

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

5

Segment Result(JPYmn, %)Segment result

FY2020/3Q
Result

FY2019/3Q
ResultChangeYoY

13,10820,547-7,439-36.2“GLOBAL WiFi”

5,906

13,269-7,363-55.5

Information andCommunications Service

6,666

6,840

-173

-2.5

12,573

20,109-7,536

-37.5

538

443

+95

+21.5

Adjustments

-3

-5

+2

－

Segment profit or loss (-)

58

2,970

-2,912-98.0“GLOBAL WiFi”

-48

2,870

-2,919－Segment profit margin

-0.8

21.6

-22.5

－

Information andCommunications Service

1,184

1,174

+10

+0.9

Segment profit margin

17.8

17.2

+0.6

－

Subtotal

1,136

4,045

-2,909-71.9

Others

-355

-219

-136

－

Adjustments

-722

-855

+133

－

Sales

Subtotal

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

6

“GLOBAL WiFi” Business
Performance Change
Sales were mostly for domestic Wi-Fi rentals during the 3Q consolidated fiscal
period (July to September).
The highest sales ever in the Wi-Fi rental business in Japan.
Actively acquire the needs for teleworking and online classes. Making the most of the performance and know-how of thedomestic Wi-Fi router rental business since 2010, acquire various usage needs (substitution when moving, hospitalization,business trip, combined use with home internet, various events, etc.).
Acquire orders with our high-quality and rich lineup, product inventory, and communication plans that meet customers’ needs.
The urgent business travels by corporations (corporations and government agencies, etc.) have recovered slightly.

1Q
2Q
3Q
4Q

1Q S E G ME NT PROF IT OR LOSS ( -)

SALES

3Q

+31.3%

13,505

3,301

2Q

17,732+36.8% 430

4Q

4,462

2,413

+30.0%

10,392 3,589+31.8%

7,882

1,602
1,826

1,308
1,297
FY2015

2,329
1,697

5,084

3,022
2,226

+39.7%-55.5%

3,929+30.6%

6,035 2,073+51.5%

2,636(3Q cumulative YoY)

4,109
2,898
4,075

(JPYmn)

5,906
1,272
1,286

1,140
+92.2%

245

593

494

114
256
60
162

146
252

3,089

FY2016FY2017FY2018 FY2019 FY2020

1,274

1,593
224

631

769
724
448

271

466

701

871

-48
326
-347

3,347

1,781

2,505

495

FY2015FY2016FY2017-27

FY2018 FY2019 FY2020(Note) Regarding the quarterly results in FY2015, the year-on-year ratio is for reference, because the quarterly financial statements have not been prepared.
Copyright(C) 2020 VISION INC. All Rights Reserved.
7

Information and Communications Service Business
Performance Change
Sales of cost reduction products and mobile communicationequipment (for teleworking, etc.) were strong.
Develop sales activities that accurately capture the growing companies’ needs to reduce costs (communication
charges, electricity charges, etc.) and support teleworking due to the spread of COVID-19.
The acquisition of monthly website production service “Vision Crafts!” is strong.
Efforts to increase stock earnings (recurring revenues), which will be the earnings base for the next fiscal year
and beyond.
Develop SaaS model services that reduce initial installation costs.
(JPYmn)
1Q
2Q
3Q
4Q
+7.9%

6,440
1,673
1,601
1,629
1,536

1Q

SALES

SEGMENT PROFIT

2Q
3Q

8,955

+2.2%

+9.4% 7,775

6,948 7,104
1,730

1,725

1,749 1,786

6,666

1,977

1,703

1,782

1,810

+13.4%

2,004

214

269

2,302

2,515

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

1,218

198

188

(3Q cumulative YoY)

1,184

212

287

342

367

350

299

482

517

371

221

2,009

1,818

285

+11.9%

219
244

2,207

1,764

+14.4%

1,024

903
2,330 2,146

+3.9%

1,172

2,115 -2.5%(3Q cumulative YoY)

1,970

1,363 +0.9%

4Q+15.2%

296

264

316

282

337

296

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020(Note) Regarding the quarterly results in FY2015, the year-on-year ratio is for reference, because the quarterly financial statements have not been prepared.
Copyright(C) 2020 VISION INC. All Rights Reserved.
8

Consolidated Balance Sheet
Equity ratio: 78.7％ (Approx. +0.3% points from the previous quarter)
Cash and deposits: Increase by JPY340mn due to profitability.
* Commitment line (set in May 2020) and other overdraft lines are not executed.
(JPYmn, ％)As of Sep.
30, 2020

Total assets

As of Jun.
30, 2020

ChangeRatio ofchangeAs of Dec.
31, 2019

ChangeRatio ofchange11,046

10,894+151+1.4

15,173-4,126-27.2

Current assets

8,689

8,580

+108

+1.3

11,792-3,103-26.3

Cash and deposits

6,079

5,738

+340

+5.9

8,485

-2,406-28.4

Non-current assets

2,357

2,313

+43

+1.9

3,381

-1,023-30.3

Total liabilities

2,330

2,329

+1

+0.1

4,268

-1,937-45.4

Current liabilities

2,271

2,304

-32

-1.4

4,222

-1,950

-46.2

58

24

+34

+137.3

46

+12

+27.8

Total net assets

8,716

8,565

+150

+1.8

10,905-2,188-20.1

Total liabilities andnet assets

11,046

10,894+151+1.4

15,173-4,126

-27.2

78.7

78.4

+0.3

－

71.7

+7.0

－

Non-current
liabilities

Equity ratio

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

9

FY2020 Forecast of Financial Results

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

10

Financial Forecast Revision(JPYmn, %)FY2020
Forecast
after revision

FY2020
Forecast
before revision

ChangeRatio
ofchange16,70016,700－－27,318

Cost of sales

7,811

7,816

-4

-0.1

11,627Gross profit

8,888

8,883

+4

+0.1

15,690

53.2

53.2

+0.0

－

57.4

8,830

9,203

-373

-4.1

12,365

52.9

55.1

-2.2

－

45.3

Operating profit or loss (-)

58

-320

+378

－

3,325

Operating profit margin

0.3

-1.9

+2.3

－

12.2

Recurring profit

167

-213

+381

－

3,358

-1,226-1,601

+375

－

2,226

Items
Sales

Gross profit margin

SG&A expenses
SG&A-to-sales ratio

Profit or loss (-) attributable toowners of parent

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

FY2019Result11

Segment Forecast Revision(JPYmn, %)Forecast
after revision

Forecast
before revision

16,70016,700－－“GLOBAL WiFi”

7,293

6,971

+322

+4.6

Information andCommunications Service

8,812

9,079

-266

-2.9

16,105

16,050

+55

+0.3

598

661

-62

-9.5

-4

-11

+6

－

Segment profit or loss (-)

58

-320

+378

－

“GLOBAL WiFi”

-54

-234

+180

－

Segment profit margin

-0.7

-3.4

+2.6

－

Information andCommunications Service

1,511

1,400

+111

+7.9

Segment profit margin

17.2

15.4

+1.7

－

Subtotal

1,457

1,165

+291

+25.0

Others

-405

-413

+8

－

-994

-1,072+77

Segment Forecast

Sales

Subtotal
OthersAdjustments

Adjustments

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

ChangeYoY－
12Performance for the Full Year (Quarterly Change)(JPYmn, %)

1Q
Sales

4,377

17,554

24.6

22.9

27.5

24.9

－

513

336

688

249

1,788

28.7

18.8

38.5

13.9

－

Operating profit margin

11.9

8.4

14.3

5.7

10.2

Sales

4,922

4,933

5,961

5,686

21,503

22.9

22.9

27.7

26.4

－

736

499

900

348

2,484

29.6

20.1

36.2

14.0

－

Operating profit margin

15.0

10.1

15.1

6.1

11.6

Sales

6,470

6,467

7,610

6,770

27,318

23.7

23.7

27.9

24.8

－

980

710

1,280

354

3,325

29.5

21.4

38.5

10.7

－

Operating profit margin

15.1

11.0

16.8

5.2

12.2

Sales

5,989

3,641

3,477

16,700Composition ratio (vs. FY)

－

－

－

－

Operating profit or loss (-)

488

-503

73

58

Composition ratio (vs. FY)

－

－

－

－

8.1

-13.8

2.1

0.3

Operating profit

Operating profit
Composition ratio (vs. FY)

Composition ratio (vs. FY)
Operating profit
Composition ratio (vs. FY)

FY2020FY

4,827

Composition ratio (vs. FY)

FY2019４Ｑ

4,024

Composition ratio (vs. FY)

FY2018３Ｑ

4,326

Composition ratio (vs. FY)

FY2017

２Ｑ

Operating profit margin

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

13

Efforts to Make in FY2020(Growth Strategy Focusing on with COVID-19 and after COVID-19)

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

14

Policy on Growth Strategy (for Entire Group)“GLOBAL WiFi” BusinessCurrent
situation

The monthly loss has improved to approx. -JPY10mn.

Information and Communications Service Business
Products and services related to reduce costs and improve operational
efficiency are strong due to the growing companies’ needs under the spread of
COVID-19.
Turn “GLOBAL WiFi” Business into a profitable on a monthly basis.
Actively sell domestic Wi-Fi.
Build a low-cost operation system when overseas travel demand gradually recovers.
Correspond to next-generation communication standards and technologies (5G and eSIM, etc.).

Accelerate the growth of Information and Communications Service
Business.

PolicyDevelop businesses and services that leverage our strength of capturing newly establishedcompanies.
Strengthen sales of SaaS model products, which will be the earnings base for the next fiscal year
and beyond.

Actively engage in new businesses, new products and services.

Make the most of corporate culture, organizational structure, business partners, and customer
assets.
Provide products and services that meet the high needs of existing customers in “GLOBAL WiFi”
Business and Information and Communications Service Business through cross selling.

Return to profitability by deep diving into existing businesses andgrowing.
Build a business and organizational structure that earns more profitsand profit margins than previous years by new business (service)profits and building low-cost operation systems.
Copyright(C) 2020 VISION INC. All Rights Reserved.

15

“GLOBAL WiFi” BusinessCurrent Situation and Future Policy
Current
situation

Due to the spread of COVID-19, travel demand has stagnated worldwide due to measures
such as restrictions on overseas travel and going out in many countries including Japan.
Number of overseas travelers from January to September*: Both outbound and inbound decreased byapprox. 80% YoY. *Refer to the materials released by Japan National Tourism Organization (JNTO).
The urgent business travels by corporations (corporations and government agencies, etc.)
have recovered slightly.

PolicyContinue to turn profitable by operating the business at the lowest cost, assumingthat overseas travel will not recover even within 2020 or 2021.
After the recovery of overseas travel, aim to maximize profit margin and increase
market share by organizing to operate with the minimum personnel, improving
operational efficiency, and improving convenience.

Strengthen Domestic Wi-Fi Sales
Strengthen sales expansion of a mobile
Wi-Fi for teleworking.
Strengthen sales expansion for local
governments & educational institutions.
Start providing “Special plan for data
contracts” for online classes.
Install a dedicated dial for local
governments & educational institutions.
Actively expand domestic plan options of“Global WiFi for Biz” for corporate
customers.

Personnel
Focus on expanding domestic Wi-Fi
sales.
Employees other than those who engage
in the development of new technology
will be transferred to Information andCommunications Service Business etc.
Use employment adjustment subsidy(for businesses affected by the COVID19 pandemic), and employment
adjustment (leave) for some personnel.

Shipping center

Airport counter
Close some counters and shorten
business hours.
Advance Smart Strategy (Expand
unmanned shops, Smart Pickup + SIM
vending machine, etc.).
Add new delivery method (convenience
store).
Significantly streamline the system(reduce fixed cost).

Cost reduction

New services

Suspend and cancel SIMs with fixed
costs. *No fixed cost for a pay-as-yougo SIM.
Reduce advertising expenses.
Reduce travel expenses and travel timeby switching to business negotiation
with Zoom.

Launch the service “Interpretation
and Dubbing.com.”
Plan and develop new services forcorporate and individual customers
traveling overseas.
Business tie-ups with domestic andoverseas business partners otherthan “GLOBAL WiFi” Business.

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

Utilize as a shipping center for otherbusinesses such as Information andCommunications Service Business(reduce outsourcing costs for theentire group).

16

Strengthen Domestic Wi-Fi Sales
Acquire usage needs by leveraging the price, rich lineup, productinventory, various communication plans that meet customers’ needs,
remote support, marketing, brand (GLOBAL WiFi), and customer base.
Strengthen sales expansion of a mobile Wi-Fi for teleworking.
Strengthen sales expansion of a mobile
Wi-Fi for educational institutions andAvailable in Japan / For online classes
local governments.
Wi-Fi rental for teleworking*Osaka introduced 3,300 units, and we are also currently innegotiation with the Board of Education etc. in other regions.

Over
100units
available“GLOBAL WiFi for Biz” for corporate
customers

Zeroofficefee

Corporateplan
available

Actively expand sales of domestic plan options.
For school and educators

Wi-Fi rental for online classes

Recommend forteleworking!

・ Provides quotes the sameday, and delivers the next day
at the earlies
・Laptop, tablet available
・Easy to set up

Can be used immediately
without any construction work!

Introduction record: Used by many schools for online class.

Start teleworking immediately
without an internet environment!

Tokyo University, Waseda University, Seijo University, Hokkaido Universityof Education, Aichi Shukutoku University, Shizuoka Sangyo University,
Shizuoka Prefectural University, Osaka University of Economics, Hyogo
Prefectural University, Okayama Prefectural University, Nagoya Medical and
Health Sports College, Tokyo Design Technology Center

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

17Efforts to Popularize Online Learning“GIGA School Concept”
To realize an educational ICT environment that is individually optimized for eachchild and fosters creativity- One device for each person as a standard in the Reiwa era Contribute to promote online learning in the “GIGA School Concept” by expanding the options which
local governments can choose data communication costs, Wi-Fi routers and data communication
contracts this year and beyond.
Local governments purchase “cloud-type Wi-Fi routers” and distribute them to homes that require a communication
environment.
Each home makes a data communication contract and can use a data communication service.

Our 4 strengths
utilizing our unique cloud technology
Online class

School Concept
Dedicated dial for
local governments
and educationalorganizations

Low
installation
cost

Low cost
during nonuse period

Remotely
resolvecommunication
problems

No need toreplace SIM

Many other benefits…
Copyright(C) 2020 VISION INC. All Rights Reserved.

18

New Service “Interpretation and Dubbing.com”
Launch the service of online/offline business negotiations and conference
interpretation, video translation/dubbing.
Business negotiations, conferences, and IR meetings (Japanese ⇄ foreign language) with overseas companies andinvestors at web meetings such as ZOOM and conference calls.
Create an English dubbed video for overseas investors (Japanese ⇄ foreign language).
Create dubbed videos in foreign languages such as English and Chinese (foreign language ⇄ Japanese).
Dubbed videos in any foreign language into Japanese such as AI, 5G, autonomous driving, IoT, finance (for in-housetraining videos, etc.).
Meetings and social gatherings with employees of global affiliated companies, etc.
“Beyond the language barrier, make your business more global.”
Provide interpretation, translation, and dubbing services that can be usedin various business situations at reasonable prices.

Beyond the language barrier
Make your business more global.

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

19

“GLOBAL WiFi” Business
Items

Profit Structure

Summary

Overseas
Regular rental：
Rental price per day × number of days used
Average: JPY1,000/day, Average number of days used: 7 days

Sales

Options such as insurance, mobile battery, etc.

GLOBAL WiFi for Biz：
Monthly charge (JPY1,970) + data communication fee (plan) × number of days used

Domestic
Rental price per month (available for rental from 1 day)Average: Approx. JPY5,000/month, Average days used: 1.5 months (45 days)

Cost of sales

Data communication (telecom carriers in the world)
Terminal price (mobile Wi-Fi routers)
Recorded as rental asset (recorded by 2-year depreciation)

Outsourcing (commission paid to sales agents), etc.

SG&A expenses

Personnel, advertising, shipping delivery, business consignment,
credit card payment, etc.
Operation and rent of shipping centers, airport counters, customer
centers, etc.
Other SG&A expenses, etc.
Copyright(C) 2020 VISION INC. All Rights Reserved.

20

Changes in Monthly Cost and Segment Profit“GLOBAL WiFi” Business
Recover to profitability due to domestic Wi-Fi rental revenue.
Reduce costs by pay-as-you-go purchase contract with no communication costs unlesscommunication occurs.
Depreciation costs decreased significantly due to the impairment loss of fixed assets in the business (approx.
JPY1.2bn), recorded in FY2020/2Q.
Cost structure that changes depending on the number of rentals: communication costs, shipping delivery costs,
credit card payment fees, etc.
(JPYmn)
1,093

1,156

(JPYmn)SEGMENT PROFIT OR LOSS (-)

COST

225
178

777
542 584 545

455
418 428-19
Jan. Feb. Mar. Apr. May Jun.

Jul. Aug. Sep.

-90

-107

SG&A expenses 591 572 439 328 340 314 273 279 276
Cost of sales

Overseas
telecom cost

292 313 209 203 226 223 143 146 168
210 271 129

10

17

7

2

3

-0

-17

-88

-182

11
Jan. Feb. Mar. Apr. May Jun.

Jul. Aug. Sep.

(Note) The figures are different from those of the segment results because they are monthly changes in profit and loss which do not include closing.
21
Copyright(C) 2020 VISION INC. All Rights Reserved.

Utilize “CLOUD Wi-Fi Router”
A Wi-Fi router with next-generation communication technology that manages SIM
on the cloudNo need to insert/change SIM physically.
Communication lines all over the world can be used with only one device.
The device settings can be adjusted remotely in case of a communication problem.
Can change the plan (data capacity) during the rental.

Make the most of the characteristics of the CLOUD Wi-Fi router.
Convert the Cloud Wi-Fi router used for overseas communication service to the domestic Wi-Fi router.
Since a physical SIM card is not inserted in the router, it can be assigned to other routers depending on
the communication status.
* It can be operated even in the case that the number of rentals is more than the number of SIMs
(efficient operation of communication costs).

You can use it
immediately
after turningon the power!

Store SIMs allover the worldon the cloud

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

22

Pick-up at Convenience Store Started
Based on user’s convenience, start a service you can pick-up a Wi-Fi router at SevenEleven throughout Japan (excluding Okinawa) near your workplace or home.
You can pick it up at midnight if the store is open.
Offer options to avoid crowded places where people gather, such as airport counters.

You can pick-up
at Seven-Eleven nearyou.

At Seven-Elevennear you

You can pick it up at
Seven-Eleven near you.

At anytime

Ready-to-go
in advanceYou can pick it up even at
midnight if the store is open.

You don’t need to wait at the
airport counter.

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

23

Pick-up at Airport Counter and Smart Pickup
Receive and return at domestic 18 airports, 39 counters, 36 Smart Pickup units, and return BOX.
Installed automatic pick-up lockers at 11 airports.
Newly opened counter: 1 counter *FY2020/3Q cumulative period
Haneda Airport Terminal 2
Newly installed Smart Pickup: 5 units *FY2020/3Q cumulative period
Komatsu Airport, Narita Airport Terminal 3, Kita-kyushu Airport, Chubu Centrair International Airport Terminal 2,
Kagoshima Airport

The service level is optimized according to customer.
Eliminate waiting time for customers who do not need explanation such as repeaters (Utilize Smart Pickups).
Airport staffs respond to customers who need explanation (Utilize airport counters).
The highest number of airport countersin the industry
Receive and Return according tocustomers’ needs

Airport and other places to receive/returnin Japan
Hokuriku/Koshinetsu

Niigata Airport

New Chitose Airport★

Komatsu Airport★

Asahikawa Airport

Kyushu/Okinawa
At the airport

At a convenience store

By delivery

Fukuoka Airport★

Overseas destination

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

Hokkaido/Tohoku

Sendai Airport
Kanto

Kita-kyushu Airport★

Narita Airport★

Oita Airport

Haneda Airport★

Miyazaki Airport

SHIBUYA“CHIKAMICHI”

JR Miyazaki Sta.

Tokai/Kansai

Kagoshima Airport★

Kansai Airport★

Naha Airport

Chubu Airport★

Miyako Shimojishima
Airport★

Shizuoka Airport

Itami Airport★

★Available for automatic pick-up lockers

25

Accelerate to Expand Unmanned Shops
Accelerate to expand unmanned shops with vending machines.
Target airports
Kita-kyushu airport, Miyako Shimojishima Airport* Plan to add more in the future.

What units are installed?
Smart Pickup + Return BOX(Available for pick-up and return)

FeaturesNon-face-to-face receipt even during busy seasons
without waiting at the airport counter (for repeaters
who do not need explanation, effective against
COVID-19).
Respond to customers early in the morning and late
at night, when there are needs, but it is difficult tosecure human resources.
Also install vending machines for pre-paid SIM fordomestic use mainly for foreign travelers visiting
Japan and those who are temporarily back to Japan.
Available to add touch points with space-saving andlow-cost (improve convenience and increase profits).
Copyright(C) 2020 VISION INC. All Rights Reserved.

25

Expand Service Areas for Unlimited Plan
Recently we tend to consume large amounts of data communication capacity, such as
diversified smartphone apps, transmission and reception of large-volume images andvideos, and SNS posting.
Popular to share with multiple people such as friends and family members, and to use
multiple devices (smartphones, tablets, laptops, etc.) for business.
⇒ Expand the service areas responding to a request for the plan that can be usedwithout worrying about data capacity.
Choice ratio of unlimited plan increased in both corporate and individual users(over 40%). ⇒ Improve ARPU.
Changes in the numberof service countries

Data
capacity

Start offering an unlimited plan

Further expanded
the coverage area.

Available in 91 countries

What’s an unlimited plan?
“Unlimited plan” with unlimited data capacity
was born from the voice of customers whowant to use without worrying about the datacapacity.

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

Feb. 20194

Jun. 201971

Sep. 201972

Dec. 201973

Mar. 2020

74

Jun. 2020

9126

Information and Communications Service BusinessCurrent Situation and Future Policy
Current
situation

PolicySupport a sudden change in work style associated with the spread of
COVID-19.
Acquire needs to reduce costs (various communication charges) and improve operational
efficiency.
Respond to teleworking (mobile communication equipment such as cell phones andimprovement of infrastructure environment).

Provide products and services responding to changes in work styles(Plan and sell teleworking support products).
Establish a sales style that is not tied to working place. Maximize
productivity per person.
Increase stock revenue, which underpins stable growth.

Plan and sell teleworking
support products

Sales style that is not tied toworking place

Vision Web Service: VWS series
SNS for business: JANDI
Web meeting and online businessnegotiation system: meet inTelephone agency service: te-le-rePlan and sell in-house operated andrenovated services at any time.

Promote teleworking actively.
Strengthen online sales.
Strengthen inside sales.
Minimize visiting sales.
Expand sales area.
Reduce operating costs (travel
expenses, overtime pay, etc.)

Maximize productivity per person
Maximize number of negotiations (notravel time).
Acquire negotiation appointments using
Web marketing know-how with over 15
years experience.
Improve productivity through uniform
training.
Thoroughly analyze customer attributes.
Strengthen retention CRM.

Expand sales of cost reduction
products

Hybrid Synergy model

Increase stock revenue

Web marketing + CLT (customer
center) + sales
Cross-function organizational
structure.
Make the most of our customers’
assets.
Escalation (cooperation between
divisions, customer introduction)

In addition to existing stock revenue,
expand profits by developing in-houseservices including online services,
corporate mobile maintenance service“Garasapo,” website maintenanceservice, strengthen sales such as LED
sales, etc.
Increase customers by businessalliance.
27

Provide various telecommunication
discount services (fixed-line, mobile,internet).
Monthly website production service“Vision Crafts!”
Provide products and services withless initial installation costs.

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

Gross Profit Composition
Sales of mobile communication equipment are strong (increase number of companies
introducing teleworking).
Orders for “Vision Crafts!”, a monthly website production service that can reduce initialinstallation costs, are steadily growing.
Decrease orders for OA equipment sales under lease contracts, partly due to the decline indomestic leasing transaction volume.
* Refer to the materials released by Japan Leasing Association.

3Q FY2019 Cumulative

3Q FY2020 Cumulative
0.6%

0.0%
2.2%

10.8%

2.3%
23.4%

9.0%

11.6%

10.5%

JPY
3,461mn15.2%

JPY
3,545mn

20.3%

13.7%
30.2%

10.7%

27.8%

11.6%

Fixed-line communications
Mobile communications
Fixed-line communications
Mobile communications
Broadband
Office automation equipment
Broadband
Office automation equipment
Internet media
Eco solution
Internet media
Eco solution
Construction related
Other
Construction related
Other(Note) The figures are different from those of the segment results because they are monthly changes in profit and loss which do not include closing.
Copyright(C) 2020 VISION INC. All Rights Reserved.
28

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

Apparent needs that
customers are aware ofUser relationship

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

DX promotion

Cost reductionneeds
Efficiency
improvement Potential needs that
customers areneeds
unaware ofCommunication
activation needs

New users

Subscription
promotion

Existing users

Management
Strategy Promote productivity

DX promotion

improvement

Analyze customer
Improve gross profit,
attributes
Strategy

Big data
Targetingmarketing

In-house SaaS
promotion

DX promotion

Membershipstrategyplanninggross profit margin
and absolute amount

Strategic investment Improve(M&A, alliance)
procurement

Sales

Sales improvement
needs

DX promotion

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
29

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
information
30

“High Efficiency” Marketing“High efficiency” marketing with combined three factors:
web marketing × sales rep × CLT

NewExisting

customers

customers

Acquire highly
reliable actual
demandHearcustomers’
problems andneeds

Proposalwith highprecision

Cooperation

Cooperation

Web marketing
team

Customer Loyalty
Team (CLT)

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

31

Escalation(Cooperation among Divisions, Customer Referral)

Organization culture that creates continuous evolution○たゆまぬ進化を生みだす組織カルチャーHigh productivity created by escalation system (cooperation among
事業部間連携（エスカレーション）が生みだす高い生産性
divisionsand customer referral)
Customers

Improve productivity through flat and open culture,and the “escalation system” promoting cooperation among divisions

Cooperation

Cooperation

Cooperation

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

32

Stock-type Business Model
Stock-type Business Model
Offer optimum solutions according to the growth stage, continuing close to thegrowth of customer companies.
Structure that accumulates profits by our original know-how CRM (customer
relations/continuous dealings).
Offer products and services

Optimum
solutions

Offer OA equipment
and website support
etc. suitable for thebusiness environment
Consulting services
suitable for thebusiness growth stage

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

Further growth
stage

Early growthstage

Startup
stage

Increase members
coming from expansion(Add communicationlines, and numbersof units, etc.)

Increase members
coming from expansion(Add communicationlines, and numbersof units, etc.)

Current main targets

Future targets“Reserves for Growth”“Enterprises in growth stages”

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

33

Maximize Productivity per Person
Maximize productivity per person by creating a success spiral of corporate
culture (escalation culture, cross-function organizational structure), businessmodel, and sales structure.

Success spiral components
Improveproductivity
per person

Competitive
advantage

Incentives, purchasing conditions

Improveeconomic
conditions

Successful
experience(contract)

Accumulate experience and know-how
Maximize
number ofnegotiation

Inflow to our website
Telemarketing
Escalation

Low price (low gross profit), product lineup
Increasesales

Accumulate experience and know-how
Manynegotiation
experiences

Corporate
cultureCopyright(C) 2020 VISION INC. All Rights Reserved.

34

Provide Products and Services Responding toChanges in Work Styles
In-house developed or used services are
expanded to users.
Provide the required functionality in thecloud as needed.
Reduce users’ costs (installation and running).
Expand the VWS (Vision Web Service) series.

VWS series(Attendance, workflow)

SNS for business（JANDI)

精算
申請

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

35

Provide a New Service that Meets Customers’ Needs
Sales of monthly website production service “Vision Crafts!” are strong.
Utilizing over 100 website production experiences per month, we provide production
service of website that customers can easily create and “visually convey!” at a low price(from JPY3,980/month).

Simple!
Website update

Abundant
design materials

Reliable staff
before opening

How to use!
Support desk

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

All from 3,980
yen/month36

Sustainable Growth and Corporate Value Improvement- ESG Activities -Copyright(C) 2020 VISION INC. All Rights Reserved.

37

Sustainable Growth and Corporate Value
Improvement - ESG Activities
Environment

Corporate Governance

Measures against global warming
Promote ECO and recycling
Activities to support disaster areas

Strengthen corporate governance
Promote risk management
Strengthen compliance

Environment

Governance

Related main SDG items

SocialRecruitment/Employment

Work-style Reform

Various recruitment channels
Recruitment advantages

Personnel system suitable for thetimes
Unique benefits
Copyright(C) 2020 VISION INC. All Rights Reserved.

38

Environmental Activities
Acquire a “Green Site License” to offset the carbon
footprint of our website.
* Support the environment with “Green
Electricity” for our website's CO2 reduction.
Support and cooperate with the organization
which provides information, supports activities indisaster areas, and provides assistance to various
activities to “realize a society where people can
support each other in times of earthquake disasters.”
Offer reasonable LED by rental.
Paperless efforts
Provide iPad to sales staff, etc.
Utilize video conference (reduce unnecessary traveling).
Utilize electronic forms and internal SNS actively.
Select recyclable suppliers.

Provide iPad

Video conferenceElectronic form (workflow)
Utilize internal SNS

Select recyclable
suppliers

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

39

Social Activities
Various recruitment channels
Fair recruitment, referral recruitment, active female recruitment(Female employee ratio: 33%).
Hire multinational employees (Foreign nationals: 16.2％ (full-time)).
Hire disabled people (“Meiro-juku,” localgroup to support disabled people;
continuously awarded since 2015).

Introduced personnel system suitable to the times and uniquebenefits.
Shorter working hours, shift and flextime systems
Half-day leave/hour leave (paid leave) applied, spouse birthday leave(special leave)
Drink benefit (for summer season), influenza vaccination subsidy

Average annual income
continues to increase.
Improve work efficiency.
* Utilize AI chatbot, RPA, etc., actively.
Improve productivity.
Shift to high-value-added works.
Make payments of commission,achievement allowance, andperformance-linked bonus.

Robot automaticallyprocesses routine tasks, etc.
Data

OK
!

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

Invoice
Email

Input

40

Social Activities“Vision Kids Nursery” run as company-led
childcare businessFor childbirth and childcare, which are both big events in employees’ lives, implement measures
to make rules of employment more flexible, expand leave systems, and promote taking leave(current status)⇒ Provide a more comfortable work environment (a sense of security that children are nearby)
than ever before.
* Establish a childcare facility within a site of CLT, wherefemale employees account for more than 90%.
It is easy to return to work, so hire employees who are
motivated to work in a parenting generation⇒ One of sources of sustainable growth

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

41

Social Activities
Support Japan Heart’s activities -“to deliver healthcare to medically-isolated areas.”
Japan Heart is an International medical NGO originated in Japan, which was established by thefounder Hideto Yoshioka (pediatrician) in order to improve the quality of medical support activities,
based on his many years of medical experience in foreign countries.
Many medical workers and volunteers from Japan have supported the organization, more than 4,500 volunteers
have participated in the activities, and more than 200,000 treatments have been conducted in developing countries.

Japan Heart’s activities
There are four areas where medical care is difficult to deliver.
One is developing countries suffering from poverty and shortage of doctors.
One is remote areas and isolated islands in Japan.
One is inside children’s heart who fight diseases. One is the large-scale disaster-stricken areas.
Japan Heart is working to deliver medical care to these four areas.

Our support for Japan Heart
Agreeing with the activities of Mr. Yoshioka and Japan Heart, our Company supports themby offering GLOBAL
WiFi for free,and by donating a partof our sales.

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

42Governance System

Independent officer system
Total number of Directors: 6(including independent outside directors: 3 / Male: 5, Female: 1)⇒ Business owners with rich experiences in web marketing,inbound business, and the financial industry/global business.
Total number of Audit & Supervisory Board Members: 4(Independent outside auditors: 4)⇒ CPAs, prosecutors/lawyers, and business owners.

Strengthen information security
ISMS (Information Security Management System) certification
Certified under the international standard “ISO/IES 27001.”
Established and has operated the Information
Security Committee.

Compliance, risk management, and internal control activities
Conduct training sessions regularly.
Copyright(C) 2020 VISION INC. All Rights Reserved.

43

Treasury Share Acquisition(Resolved by the Board of Directors’ Meeting on February 21, 2020)* Excerpt from “Notice Regarding Decision to Acquire Treasury Shares” on Feb. 21, 2020, and “Notice regarding
the status and completion of treasury share acquisition”

PurposeTaking into cash on hand, share price, and other factors comprehensively, conductacquisition of treasury shares flexibly to improve capital efficiency.
Items

Details

Class of shares acquired Common stock of the Company
Total number of sharesacquired909,000 shares
Percentage of issued shares (excluding treasury shares):1.89%

Total acquisition price ofJPY985,974,100
sharesAcquisition period

February 25, 2020 to February 28, 2020

Ownership status

Number of shares

Total number of issued shares

49,027,800 shares

Number of treasury shares held

1,948,044 shares

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

44

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

Items

Details

Name

Vision Inc. Third Series Stock Acquisition Rights

Number of issues

13,560 units

Issue price

JPY1,600 per stock acquisition right

Total issue price

JPY3,510,684,000

TargetDirectors (excluding outside directors), employees, and employees of thesubsidiaries: 163 people, 13,560 units

Conditions forexercising stockacquisition rights

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

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

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

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

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

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

45

25years 400,000companies*1 15mn people*2*1 Number of companies using since 2004 (as of May 31, 2020)*2 Number of customers using Wi-Fi router rental service (as of August 2020)

To solve the problems for customers who challenge
the “now” with our gratitude so far

To Contribute to the Global Information andCommunications Revolution
Copyright(C) 2020 VISION INC. All Rights Reserved.

46

Notes on the Future Outlook
Materials and information provided in this announcement include so-called “forward-looking
statements.”
They are estimated at the present and are based on the assumption that involves forecasts
and risks, and substantially they include uncertainties which could cause different results fromthese statements.
These risks and uncertainties include general industry and market conditions, and generaldomestic and international economic conditions, such as interest rates and currency exchange
fluctuations.
In the future, even if there is new information or future events etc., we shall not be obligatedto update and revise the “forward-looking statements” included in this announcement.
Vision Inc.
Contact： Investor Relations Dept.
ir@vision-net.co.jp

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

47