2nd Quarter FY2020

Financial Results

August 17, 2020
Vision Inc.
(1st Section of the Tokyo Stock Exchange, code： 9416)

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

2Q FY2020 Financial Results

Performance Highlights and 2Q FY2020 Results

P.3

FY2020 Forecast of Financial Results

P.12

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

P.16

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

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

2

Performance Highlights and 2Q FY2020 Results

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

3

Consolidated Profit and Loss Statement
Sales: -25.6％ YoY, and Operating loss: -JPY15mn
FY2020/2Q Result

Items

Amount(JPYmn, %)ChangeComposition
ratio

AmountPercentage

Sales

9,630

100.0

-3,307-25.6

FY2019/2Q Result

12,937100.0+3,081

+31.3

4,822

50.1

-2,673

-35.7

7,496

57.9

+1,677

+28.8

290

3.0

-1,801

-86.1

2,091

16.2

+455

+27.8

-15

-0.2

-1,705

－

1,690

13.1

+454

+36.7

66

0.7

-1,606-96.0

FY2019/2Q Result

1,673

12.9

+428

+34.4

Profit or loss (-) attributableto owners of parent-1,352-14.0-2,427－FY2019/2Q Result

1,075

8.3

+265

+32.9

Gross profit
FY2019/2Q Result
EBITDAFY2019/2Q Result

Operating profit or loss (-)
FY2019/2Q Result
Recurring profit

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

4

Factors for Change in Operating Profit(JPYmn)Operating profit margin -0.2％(Approx. -13.2% points YoY)Sale
“GLOBAL WiFi” Business

1,690

Outbound and inbound rentals have been almost zero.
* Consolidated fiscal period (April to June)
Strengthen domestic Wi-Fi sales, domestic Wi-Fi rental sales
only during this consolidated fiscal period.

Operating profit-JPY1,705mn

Information and Communications Service Business-3,307-15
Gross profit-JPY2,673mn(-35.7%)

Cost of sales

Cost of sales- +968
to-salesratio+7.9% points

+633

営業
利益率
15.1％
FY2019/2Q

Sales

Cost

“GLOBAL WiFi” Business
Increase cost of sales-to-sales ratio due to sales decrease.

Information and Communications Service Business

SG&A-to-sales ratio+5.4% points
営業
利益率
8.1％
SG&A

expenses

Sales of cost reduction products and mobile communicationequipment (for teleworking, etc.) were strong.
Due to the suspension of leasing examinations in the sales
of OA equipment (suspension of examination work due to
new handling and self-restraint request, etc.), the timing ofsales recording was delayed.

FY2020/2Q

Increase cost of sales-to-sales ratio due to increased salesof mobile communication equipment such as cell phones (byincreasing the ratio of products that generate purchased
costs).

SG&A expenses
Decrease SG&A-to-sales ratio due to review and reduction ofvarious expenses.
* Advertising expenses (listing, etc.), performance-linked
bonus, shipping expenses, travel expenses, supplies
expense, etc.

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

5

Segment Result“GLOBAL WiFi” Business: Sales -43.4% and Segment loss -JPY20mn
Information and Communications Service Business: Sales +0.2% and Segment profit -1.8%(JPYmn, %)Segment result

Sales

FY2019/2Q
ResultAmountAmountChangeAmountPercentage“GLOBAL WiFi”

4,634

8,184

-3,550-43.4

Information andCommunications Service

4,520

4,509

+11

+0.2

Subtotal

9,154

12,694-3,539-27.9

Others

478

247

+230

+93.2

Adjustments

-2

-4

+2

－

Total (Cons.)

9,630

12,937-3,307-25.6“GLOBAL WiFi”

-20

1,596

-1,617

－

-0.5

19.5

-20.0

－

817

832

-15

-1.8

18.1

18.5

-0.4

－

Subtotal

796

2,428

-1,632-67.2

Others

-306

-157

-148

－

Adjustments

-504

-580

+75

－

Total (Cons.)

-15

1,690

-1,705－

Profit margin

Segment
profit or loss(-)

FY2020/2Q
ResultInformation andCommunications Service
Profit margin

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

6

“GLOBAL WiFi” Business
Performance Change
Sales were domestic Wi-Fi rental only during the 2Q consolidated fiscal
period (April to June).
Strengthen domestic Wi-Fi sales:
In response to the growing needs for teleworking and online classes, increase orders due to our high-quality,
abundant lineup, and product inventory (companies, universities, government offices, etc.).

Rapid overall cost reductions:
Personnel costs (including job rotation), rent, sales promotion expenses, advertising expenses, employment
adjustment (leave), suspension of some shops, etc.
1Q
2Q
3Q
4Q

1Q

SALES

3,301

2Q

17,732

3Q+31.3%

13,505(JPYmn)SEGM ENT P ROF I T OR LOSS ( - )+36.8%

4Q

4,462

2,413
+51.5%+30.0%

10,392 3,589 5,084

7,882

6,035 2,073

224

2,636

1,602
1,826
1,308
1,297
FY2015

2,329
1,697

1,140

+92.2%

3,929

3,022
2,226

4,109
2,898

1,781

2,505

3,089

FY2016FY2017FY2018495

1,274+39.7% 1,593+31.8%+30.6%

430

593-43.4%

1,286
4,075

3,347

FY2019FY2020

114
256
60
162

245

631

494

271

146
252

466

769
724
448
701

871
326
-347

FY2015FY2016FY2017FY2018FY2019FY2020(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 companies’ needs to reduce costs andsupport teleworking due to the spread of COVID-19.
Strengthen sales of VWS (Vision Web Service), online products and services.
* Efforts to increase stock earnings by deploying SaaS model services that reduce initial installation costs.
(JPYmn)
1Q
2Q
3Q
4Q
+7.9%

6,440
1,673
1,601

1Q

SALES

2Q
3Q

8,955

+2.2%

+9.4% 7,775

6,948 7,104
1,730
1,749

1,725
1,786

1,810

2,115

+14.4%

1,024

1,970

+13.4%

903
2,330
+0.2%

1,977

1,818

+3.9%

1,172

2,207 2,004

1,703

1,363

4Q

+15.2%

1,782 2,009
1,629 1,764
1,536

SEGMENT P ROF IT

244

198

188

212
342

287

296

264

316

282

-1.8%

371

221

2,515

FY2015 FY2016 FY2017 FY2018 FY2019 FY2020

1,218

219

214

269
2,302

285

+11.9%

350

299

482

517

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: 78.4％ (Approx. +2.1% points from the previous quarter)
Cash and deposits decreased due to a significant decrease in sales in “GLOBAL WiFi” Business,securing inventory in the mobile communications business, purchasing hygiene products for sale, andother factors.
(JPYmn, ％)As of Jun.
30, 2020

As of Mar.
31, 2020

ChangeAs of Dec.
31, 2019

ChangeAmountAmountAmount Percentage

AmountAmount Percentage

8,580

9,965

-1,384-13.9%

11,792-3,211-27.2%

5,738

6,864

-1,125-16.4%

8,485-2,746-32.4%

2,313

3,173

-859

-27.1%

3,381-1,067-31.6%

10,894

13,138-2,243-17.1%

15,173-4,278-28.2%

2,304

3,058

-753

-24.7%

4,222-1,918-45.4%

24

36

-11

31.5%

46

-21

-46.1%

Total liabilities

2,329

3,094

-765

-24.7%

4,268-1,939-45.4%

Total net assets

8,565

10,044-1,478-14.7%

10,905-2,339-21.5%

Total liabilities andnet assets

10,894

13,138-2,243-17.1%

15,173-4,27828.2%

Equity ratio

78.4%

76.3%

2.1%

－

71.7%

+6.7%

－

Current assets
Cash and deposits
Non-current assets
Total assets
Current liabilities

Non-current liabilities

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9

Maintain Stable Financial Base
Take financial measures to execute a flexible financial strategy.
Possible to conduct investments and take various measures according
to changes in the environment.
Secure approx. JPY8.98bn in real cash on hand through financial
measures.
【Real cash on hand】

Cash and deposits
as of Jun. 30, 2020

5.73

Commitment line set
3.00
in May 2020

Other
overdraft lines
Totalreal cash on hand

0.25
8.98

Possible to maintain stabilityof BS;
Shareholders’ equity ratio
would be around 60%*,
even if executing allcommitment lines.
(Ref.: Equity ratio 78.4%, as of Jun. 30, 2020)* The equity ratio when all commitment
lines and overdraft lines are executed, basedon the consolidated balance sheet as of June30, 2020.

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10Impairment Loss
In “GLOBAL WiFi” Business, assuming that overseas travel(outbound and inbound) will not recover even after the end of
FY2020, reduce the book value to the recoverable amount for
assets for which profitability has declined and investment cannot
be expected to be recovered, and record an impairment loss ofapprox. JPY1.2bn.
Impairment Loss
Impair approx. JPY1.2bn of fixed
assets in “GLOBAL WiFi” Business(record as extraordinary loss),considering the uncertain situation
regarding the future outlook, despite
the deterioration of businessperformance due to the special factor of
COVID-19.

From the second half of FY2020,
the depreciation of our Groupwill be reduced for these assets.
FY2020 3Q-4Q (cumulative):
Approx. JPY372mn
FY2021 1Q-4Q (cumulative):
Approx. JPY414mn* Wi-Fi router, options, software, equipment, etc.

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

11

FY2020 Forecast of Financial Results

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12

FY2020 Forecast of Financial Results
Sales: -38.9％ YoY, and Operating loss: -JPY320mn(JPYmn, %)FY2020 Forecast

Items

AmountChangeComposition
ratio

AmountPercentage

16,700100.0-10,618-38.9

27,318100.0+5,814

+27.0

8,883

53.2

-6,806-43.4

FY2019 Result

15,69057.4+3,040+24.0

Operating profit or loss (-)

-320

-1.9

-3,645－FY2019 Result

3,325

12.2

+840

+33.8

Recurring profit or loss (-)

-213

-1.3

-3,572－FY2019 Result

3,358

12.3

+859

+34.4

Profit or loss (-) attributableto owners of parent-1,601-9.6-3,828－FY2019 Result

2,226

8.1

+696

+45.6

Sales
FY2019 Result

Gross profit

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13

Segment Forecast“GLOBAL WiFi” Business: Sales -60.7% and Segment loss -JPY234mn
Information and Communications Service Business: Sales +1.4% and Segment profit +2.7%(JPYmn, %)Segment forecast

Sales

FY2019ResultAmountAmountChangeAmountPercentage“GLOBAL WiFi”

6,971

17,732-10,761-60.7

Information andCommunications Service

9,079

8,955

+123

+1.4

16,05026,688-10,638-39.9

Others

661

637

+23

+3.8

Adjustments

-11

-7

-4

－

16,70027,318-10,618

-38.9

-234

3,301

-3,536

－

-3.4

18.6

-22.0

－

1,400

1,363

+37

+2.7

15.4

15.2

+0.2

－

Subtotal

1,165

4,665

-3,499-75.0

Others

-413

-266

-147

－

-1,072-1,073

+1

－

-320

3,325

-3,645

Subtotal

Total (Cons.)“GLOBAL WiFi”
Profit margin
Information andCommunications Service

Segment
profit or loss(-)

FY2020
Forecast

Profit margin

Adjustments
Total (Cons.)

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－
14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

－

15.1

11.0

16.8

5.2

12.2

5,989

3,641

16,700Composition ratio (vs. FY)

－

－

－

Operating profit or loss (-)

488

-503

-320

Composition ratio (vs. FY)

－

－

－

8.1

-13.8

-1.9

Operating profit

Operating profit
Composition ratio (vs. FY)

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

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

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15

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

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

16

Policy on Growth Strategy (for Entire Group)
Current
situation“GLOBAL WiFi” Business:
The monthly loss has improved to less than -JPY100mn.
Information and Communications Service Business:
The same level as last year although it has been affected by
COVID-19.
Turn “GLOBAL WiFi” Business into a profitable early on a monthly basis.
Actively sell domestic Wi-Fi, and develop Information and Communications Service Business and any
new business, other than resources ensuring quality and operations that maintain competitive
advantages after recovery of travel.

Accelerate the growth of Information and Communications Service
Business.

PolicyAccelerate the growth of the business, which is one of our growth businesses and generates stable
returns.
Develop businesses and services that leverage our strength of capturing newly establishedcompanies.

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.

By the end of 2Q, measures to improve loss (defense) had beenroughly completed.
After 3Q, make the most of the experience and know-how cultivatedas a compilation of 25 anniversary of its foundation, while making
various investments to earn profits (offense).
Copyright(C) 2020 VISION INC. All Rights Reserved.

17

“GLOBAL WiFi” BusinessCurrent Situation and Future Policy
Current
situation

PolicyThe number of overseas travelers is almost zero.
Number of overseas travelers from April to June*: Both outbound and inbounddecreased by 99% YoY.
*Refer to the materials released by the Japan National Tourism Organization (JNTO).

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 marginand 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 of a mobile
Wi-Fi for educational institutions andlocal governments.
Actively expand domestic plan optionsof “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 willbe transferred to Information andCommunications Service Business etc.
Use employment adjustment subsidy (forbusinesses affected by the COVID-19
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-you-go SIM(approx. 80% of all SIMs).
Reduce advertising expenses.
Reduce travel expenses and travel timeby switching to business negotiation
with Zoom.

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).

18

Strengthen Domestic Wi-Fi Sales
Set up special pages on each sales website to maximize domestic Wi-Fi rental demand.
Strengthen sales expansion of a mobile Wi-Fi forteleworking.
Strengthen sales expansion of a mobile Wi-Fi for
educational institutions and local governments.
Make the most of the know-how and resources provided by ourcompany for the internet communication environment, which
has been an issue for inbound measures, through the partnershipwith local governments.
*Osaka introduced 3,300 units, and we are also currently innegotiation with the Board of Education etc. in other regions.

< Wi-Fi rental for corporate teleworking >Over
100units
availableZeroofficefee

Corporateplan
available

Available in Japan / For online classes

Wi-Fi rental for teleworking“GLOBAL WiFi for Biz” for corporate customers

For details

Actively expand sales of domestic plan options.

< Wi-Fi rental for educational institutions & local governments >For school and educators

Wi-Fi rental for online classes

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

School Concept

Introduction record: Used by many schools for online class.
Dedicated dial for
local governments
and educationalorganizations

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.

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

Make costs variable (efforts from before) and further reduce costs.
Reduce costs by pay-as-you-go purchase contract with no communication costs unlesscommunication occurs.
For most of the SIMs for overseas use with some fixed charge, no communication cost is incurred because ofsuspension, and for those with fixed charge, communication cost has been reduced to around 4 million yen per month.
Cost structure that changes depending on the number of rentals: communication costs, shipping delivery costs, credit
card payment fees, etc.
(JPYmn, %)(JPYmn)

1,093

COST
1,156

SEGMENT PROFIT OR LOSS (-)
225

178

777
542

584

545

Jan.

Feb.

Mar.

Apr.

May

Jun.

SG&A expenses

591

572

439

328

340

314

Cost of sales

292

313

209

203

226

223

210

271

129

10

17

7

Overseas
telecom cost

-90

-107

-88

-182
Jan.

Feb.

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

Mar.

Apr.

May

Jun.
21

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.
Telecommunication lines all over the world can be used with only one terminal.

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
terminal.
Since a physical SIM is not inserted in the router, it can be assigned to other routers dependingon the communication status.
* It can be operated even in the case that the number of rentals is more than the number ofSIMs (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.
Newly installed automatic pick-up lockers at 11 airports.
Newly installed Smart Pickup: 4 units *During this FY2020/2Q period
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

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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, one
year ahead of schedule.
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).
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 30%). ⇒ 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
A sudden change in work style associated with the spread of COVID-19.

Current
situation

PolicyRespond to teleworking (improve infrastructure environment), improve operational
efficiency, reduce costs, etc.
In this consolidated fiscal period, there was an impact (delay) due to the suspension ofleasing examinations coming from the spread of COVID-19, however the situation became
normal after the state of emergency was lifted.

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.
Website low price production andmaintenance service.
Provide products and services withless initial installation costs.

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

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

DX promotion
New users

Subscription
promotion

Potential needs that
customers areunaware of

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

Cost reductionneeds
Efficiency
improvement
needs
Communication
activation needs

Multi-job
promotion

Assetsmarketingactivation needs

satisfaction

Enhanceescalation

Marketing

improvement
Communication needs

Improveaverage value(escalation, visits,
acquisitions)

DX promotion
Enhance sales,
Enhancetelemarketing
partner, FC
Sales contact
centerDevelop new customers(Push)

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

Existing users
Cross selling
Up selling(Push)

Definite targeting, timing
sales, Life Time Value
28

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
29

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

Newcustomers

Acquire highly
reliable actual
demandExisting
customers

Hearcustomers’
problems andneeds

Proposalwith highprecision

Cooperation

Cooperation

Web marketing
team

Customer Loyalty
Team (CLT)

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

30

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.

31

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
Offer in-house products
and 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.)

Optimum
solutions

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.

32

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.

33

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.

34

Teleworking and Startup Company Support Services
Start sales of “meet in,” a web meeting and online business negotiation system.
A system that allows online negotiations
if you are online.
Travel time and transportation costs can be
reduced through online negotiations andmeetings.
Main features:
Material/screen sharing, contract signing andsealing, multi-person connection, business cardexchange, recording, questionnaire

Web meeting and online
business negotiation system

If you are online, you canalways have online
business negotiation,
wherever you are in theworld.

Start providing “tele receptionist (te-le-re),” a telephone agency service.
Start providing a telephone agency service, responding to the voice of “Teleworking companies areworried just by setting up an answering machine,” “Companies don’t want to miss phone calls when
they are out of the office.”
No need to answer the phone at your office!

Free for 10 days
Telephone agency service“tele receptionist (te-le-re)”Copyright(C) 2020 VISION INC. All Rights Reserved.

35

Provide a New Service that Meets Customers’ Needs
Start providing in earnest a new website production service,“Vision Crafts!”
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: 32%).
Hire multinational employees (Foreign nationals: 15.3％ (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

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