Cube : FY2020.2Q Financial Results presentation slide

FY2020 Q2

Financial Results Briefing Document

V-cube, Inc.

Aug 13, 2020

Copyright © V-cube, Inc. All Rights Reserved.

Index

1. Progress of the Business in Covid 19 Pandemic

1. FY2020 Q2 Results
2. Segments and KPIs
3. Current Initiatives
4. Appendix

Copyright © V-cube, Inc. All Rights Reserved.

(Negative impact of about 250 million yen

Highlights

FY2020.2Q

• Further exceeded the upward-revisedQ2 forecast (operating profit: 116% of the revised forecast, 400 million yen higher than the previous year)
• General-purposeweb conferencing exceeded expectations due to telework-related demand
• Telecube, On-premises, and Web Seminars in pharmaceutical Industry are affected more than 1Q by

declarations of emergencies of covid 19 and will be postponed after Q3

in the first half of FY20 from only the pharmaceutical web seminars)

FY2020 Full year

• In the post-corona era, demand for telework and remote operation in all industries is expected to expand further. (Further focus on communication DX)
• The shift to online seminars in pharmaceutical industry is accelerating. The concept of "SaaS+Service" greatly demonstrates the competitive advantage. Other industries are also seeing surges in face-to-face avoidance inquiries about the online launch of events, and targeted customer industries are beginning to expand
• The forecast for operating profit is raised by 708M yen from the initial forecast of 500M yen, and continues to target 900M yen. The dividend forecast doubles from 1 yen per share to 2 yen.

Copyright © V-cube, Inc. All Rights Reserved.	3

1. Progress of the Business in Covid 19 Pandemic
2. FY2020 Q2 Results
3. Segments and KPIs
4. Current Initiatives
5. Appendix

Copyright © V-cube, Inc. All Rights Reserved.	4

Growth by Focus Area in 2020

General-purpose web conferencing

①

V-CUBEmeeting

②

Solutions using visual communication

⑤ ⑥ ⑦

Image embedding

(SDK)

Provide API/SDK to meet the demand for videos in various industries, and develop business jointly. (Education/Social/Medical, etc.)

Pharmaceutical

website seminars, etc.

Distribution of web seminars in the pharmaceutical industry. Developed a system for remote detailing, on-line medical care, and medication guidance.

Emergency measures

and disaster

countermeasures

Emergency measures, disaster

countermeasures, and field

support solutions.

③ ④

Copyright © V-cube, Inc. All Rights Reserved.

⑧ ⑨

LMS/TMS

5

Impact of the new coronavirus on main business (trends by quarter)

Negative impact in the short term, but in the medium-tolong-term, the business will be expanded largely.

Q1

① (sales impact +125 mil yen)

Short	Increase in use of web conferencing due to
-	rapid increase in teleworking population
term	Demand for online delivery replacements
(impact	⑤ SDK that embeddes video services into services
Mar,	in all industries and realizes online distribution
③ Delays of On-premises Projects
Apr,May)	④ Delay in Telecube Delivery (sales △: 55 mil yen)
⑥ Postpone distribution of seminars to the
	pharmaceutical industry(sales △: 80 mil yen)
	⑦ Delayed delivery of hardware components of
	emergency response solutions

Copyright © V-cube, Inc. All Rights Reserved.

Q2

① (cumulative sales impact +487 mil yen)

Increase in pipeline and new project wins

Increase sales of Zoom

Ongoing orders for online seminars from various industries

⑤ Expansion of pay-as-you-go billing based on the number of minutes delivered as customers become more active in the online business (Cumulative sales forecast 82 mil yen, actual 140 mil yen)

⓷ Continued delays in order and delivery

④ Corporate Sales fell short of the plan due to delays in delivery, but large increase YoY Continued delivery delays for public use

⑥ Recovered from mid-June and expected to exceed full-year and 2H forecasts(cumulative sales impact: △255 mil yen)

⑦ Continued delays in order and delivery

6

	Figures in ( ) are the difference between Q2 results and initial plan
Growth by Focus Area in 2020 -Compared to Q2 Plan	(OP 500 mil yen)
	Figures in [ ] are initial full-year plan (OP 500 mil yen)

General-purpose web conferencing

Sales :1,651 (+487) [2,220]

MP: 1,329 (+410) [1,770]

V-CUBEmeeting

Sales :40 (▲32) [164]

MP: 17 (▲8) [57]

( Millions of yen)

Solutions using visual communication

Sales :140 (+58) Sales : 334 (▲255) Sales :205 (▲42)

[236]	[1,217]	[545]
MP: 122 (+42)	MP: 251 (▲221)	MP: 149 (▲2）
[228]	[975]	[335]

Sales :173(▲141)	Sales: 269 (▲66)
[532]	[1,064]

Image embedding

(SDK)

Provide API/SDK to meet the demand for videos in various industries, and develop business jointly.

(Education/Social/Medical, etc.)

Pharmaceutical

website seminars, etc.

Distribution of web seminars in the pharmaceutical industry. Developed a system for remote detailing, online medical care, and medication

guidance.

Emergency measures

and disaster

countermeasures

Emergency measures, disaster

rcountermeasures, and field support

solutions.

MP: 139 (▲133)	MP 128 (▲14)
[464]	[308]

Sales :97 (+6) [214]	Sales: 167 (▲19) [380]
MP: 56 (▲2) [144]	MP: 151 (▲16) [344]

LMS/TMS

MP : Marginal Profit (Sales - Variable Cost)

Copyright © V-cube, Inc. All Rights Reserved.	7

Capturing the Demand for Web Conferences in Covid 19 pandemic

Pipeline continues to grow in unprecedented numbers, and web conferencing usage remains in place even after the state of emergency is lifted.

The use of online seminars is greatly expanding.

Number of inquiries		Number of seminars (events)

Before Covid19

Before Covid19

19/08

19/09

19/10

19/11

19/12

20/01

20/02

20/03

20/04

20/05

20/06

20/07

19/08

19/09

19/10

19/11

19/12

20/01

20/02

20/03

20/04

20/05

20/06

20/07

V-CUBE Meetings

Number of ports(Number of concurrent connections)

V-CUBE Meeting hours

19/08	19/09	19/10	19/11	19/12	20/01	20/02	20/03	20/04	20/05	20/06	20/07
Copyright © V-cube, Inc. All Rights Reserved.						8

1. Progress of the Business in Covid 19 Pandemic

1. FY2020 Q2 Results
2. Segments and KPIs
3. Current Initiatives
4. Appendix

Copyright © V-cube, Inc. All Rights Reserved.

FY2020 Q2 Results : Consolidated P/L

Profitability improved through business selection and concentration, and general-purpose web conferencing, which has a high profit margin, grew rapidly due to the remote shift of society as a whole.

Due to postponement of many projects such as pharmaceutical web seminars and Telecube, expected to be overemphasized in the second half of the fiscal year.

		FY2019	FY2020	FY2020 full-year forecasts
	(million yen)				Revised	Rate of
			Initial	progress
	Q2	Q2	forecast
		forecast	(vs. Revised
				(Aug 13th)
					Forecast)
	Net sales	3,111	3,266	7,237	7,201	45.4%
	Cost of sales	2,066	1,749	4,250	3,988	43.9%
	Gross profit	1,045	1,517	2,986	3,183	47.7%
	SG & A Exp.	1,192	1,258	2,486	2,474	50.8%
	Operating profit	△146	259	500	708	36.6%
	Ordinary profit	△176	266	359	665	40.0%
	Profit attributable to	187	422	185	623	67.7%
	owners of parent
Copyright © V-cube, Inc. All Rights Reserved.					10

FY2020 Q2 Results : Changes in operating profit (YoY)

Significant growth centered on general-purpose web conferencing and SDK in VC segment

Profitability improved as a result of the sale of a business and a decrease in royalty expenses incurred last year contributed to profits.

350

300

250

200

150

100

50

0

-50

-100

-150

			Growth of subsidiary			( Millions of yen)
			Wizlearn's corporate
	Significant growth in
	general-purpose web		LMS
	conferencing and SDK
		14
		△33
		30

	Improve LMS profitability
	by selling iStudy in FY19						Growth of		Investing
			263			in Internal DX	259
			Lump-sum royalty		Telecube business
			expenses for FY19

86

△146

45

-200

Copyright © V-cube, Inc. All Rights Reserved.	11

FY2020 Q2 Results : Consolidated C/F

Cash flow from operating activities and free cash flow increased significantly due to growth in the general-purpose web conferencing area, etc.

Cash flow from financing activities: After the temporary repayment of debts at the end of the previous fiscal year, the balance of borrowings was recovered.

(million yen)	June 30, 2019	June 30, 2020
Cash flows from operating activities	209	957
Cash flows from investing activities	△153	△252
Cash flows from financing activities	△702	898
Free cash flow	56	704
Effect of exchange rate change on cash	△9	△17
and equivalents
Increase/decrease in cash and	△655	1,585
equivalents
Cash and equivalents,end of period	2,064	2,376

Copyright © V-cube, Inc. All Rights Reserved.	12

FY2020 Q2 Results : Consolidated B/S

Net Debt (net interest-bearing debt) decreased from about 1.4 billion yen to about 0.7 billion yen, improving

financial stability, Equity ratio is 40.9%

(million yen)	December 31, 2019	June 30, 2020	Change

Current assets	2,269	3,396	+1,127
(Cash and deposits)	(790)	(2,376)	(+1,586)

Fixed assets	4,733	4,686	△47
(Software)	(2,025)	(2,013)	(△12)
(Goodwill)	(879)	(800)	(△79)
Total assets	7,002	8,083	+1,081
Current liabilities	2,248	4,120	+1,872
(Short-term borrowings, current
(546)	(2,584)	(+2,038)
portion of long-term debt)
Long-term liabilities	1,705	623	△1,082
(Long-term loans payable)	(1,663)	(533)	(△1,130)
Net assets	3,049	3,339	+290

Copyright © V-cube, Inc. All Rights Reserved.	13

Shareholder Returns

Dividend forecast is raised on Aug 13.

Shareholder return policy will be continuously implemented while taking into account the financial situation

		•	FY2020 year-end dividend forecast: 2 yen, FY2019 year-enddividend: 1 yen
Dividend		•	In principle, it aims for a dividend payout ratio of 20% against profit attributable to
			owners of parent excluding 1-time profits and aims for a dividend payout ratio of
			30% in the future.

Shareholder

benefit

program

•	FY2019 Gift of 10 thousand yen worth of
	Telecube tickets
(Applicable to shareholders who hold 100 or
more shares as of the end of December)
•	Usage period: April 1 to December 31, 2020	→ here to use

Copyright © V-cube, Inc. All Rights Reserved.	14

1. Progress of the Business in Covid 19 Pandemic

1. FY2020 Q2 Results
2. Segments and KPIs
3. Current Initiatives
4. Appendix

Copyright © V-cube, Inc. All Rights Reserved.

Segment Overview

The profit margin of VC business temporarily deteriorated in the previous fiscal year due to special circumstances, and this fiscal year's

results exceeded the budget.

LMS business became a stable business segment led by Wizlearn of Singapore subsidiary.

AP business grew from the previous year despite delays in Telecube installation due to the closure of client offices and installation sites.

				FY2019	FY2020	FY2020	FY2020	FY2020
	(million yen)			Q2 revised		Full-year	Full-year
		Q2 actual	Q2 actual	revised forecast
				forecast	initial forecast
					(Jun 1st)			(Aug 13th)
	Visual		Net sales	2,014	2,193	2,345	4,692	4,866
	Communications		Operating profit	64	350	413	750	944
	Business		(Rate)	(3.2%)	(16.0%)	(17.6%)	(16.0%)	(19.4%)
	Learning		Net sales	596	411	391	830	825
	Management System		Operating profit	△35	40	40	70	90
	Business		(Rate)	(-%)	(9.7%)	(10.2%)	(8.4%)	(10.9%)
	Appliance		Net sales	500	691	529	1,715	1,510
		Operating profit	51	93	66	218	203
	Business
			(Rate)	(10.2%)	(13.5%)	(12.5%)	(12.7%)	(13.4%)
			Net sales	-	-	-	-	-
	Corporate expenses		Operating profit	△227	△260	△260	△538	△528
			(Rate)	(-%)	(-%)	(-%)	(-%)	(-%)
			Net sales	3,111	3,295	3,266	7,237	7,201
	Total		Operating profit	△146	223	259	500	708
			(Rate)	(-%)	(6.8%)	(7.9%)	(6.9%)	(9.8%)
【Abbreviation】 VC: Visual Communications, LMS: Learning Management System, AP: Appliance
Copyright © V-cube, Inc. All Rights Reserved.						16

Visual communication business

Achieved Q2 forecasts. Steady build-up of pipelines sharply spurred by the covid 19 pandemic, with monthly subscription on an upward

trend

Annual subscribers increased YoY despite the postponement of pharmaceutical web seminar projects under the emergency

declaration.

FY2019

FY2020

FY2020

FY2020

(million yen)

Q2 revised

Full-year

revised

Q2 actual

forecast

Q2 actual

forecast

(Jun 1st)

(Aug 13th)

Net sales

2,014

2,193

2,345

4,866

Operating profit

64

350

413

944

(Rate)

(3.2%)

(16.0%)

(17.6%)

(19.4%)

Subscription-type sales

Lost revenue due to postponement of

(million yen)

Monthly subscription

Annual subscription

pharmaceutical web seminars

1,200
1,000
800				287			347	293
			243	322		329
600	289	203			274	258
400
							658

200 469 515 525 536 513 494 504 510 512

0

FY18.1QFY18.2QFY18.3QFY18.4QFY19.1QFY19.2QFY19.3QFY19.4QFY20.1QFY20.2Q

Copyright © V-cube, Inc. All Rights Reserved.

Annual subscription

Account plan for seminar distribution in the pharmaceutical, financial and HR industries

Record sales at each meeting

Monthly subscription

Monthly contracts and long-term contracts with maturities of 6 months or more

Record monthly fixed sales

17

Visual communication business KPIs

Billing price and number of billing companies rose due to increased web conferencing demand.

Churn rate increases temporarily as the old V-CUBE seminar system comes to end.

No. 1 market share for 13 consecutive years

Monthly subscription KPI	in the Japanese web conferencing (announced on March 24, 2020)

Average monthly billing price (thousand yen)

FY14	FY15	FY16	FY17	FY18	FY19		FY20	FY20
	1Q	2Q
139	137	134	137	141	139		137	143
No. of billing companies
FY14	FY15	FY16	FY17	FY18	FY19		FY20	FY20
	1Q	2Q
1,065	1,155	1,225	1,228	1,211	1,215	1,245	1,393

ASP(SaaS) Type+SI(On-premises)Type

Other, 30%

V-cube28%

Churn rate (%)

						19/4	19/7
FY14	FY15	FY16	FY17	FY18	FY19	～	～
						20/3	20/6
19.0	16.9	13.7	14.4	12.2	10.7	10.4	11.9

Differentiation from competitors

Security

Privacy

Support

(Respond to Japanese 24 hours a day, 365 days a year)

ZCompany10%	Company
C, 22%
Company J,
10%

For Seed Planning Inc.'s 2020 Video Conference/Web Conference

Latest Markets and Video Communication Equipment and Service Trends

Copyright © V-cube, Inc. All Rights Reserved.	18

Visual communication business- web seminars in pharmaceutical industry

Despite a significant decline from March to mid-June 2020 due to the impact of the new coronavirus, the number of seminars is expected to exceed the initial forecast in the 2H of FY20 due to the recovery of delayed projects and the acceleration of the shift to online.

(times)

281

244

	197	192 198	191		236
			Self restraint
	173			173		period
	164
	144				138
	136	127
102	102				101
					56
					43

Copyright © V-cube, Inc. All Rights Reserved.	19

Learning management system business

Singapore-based Wizlearn provides online learning/training platforms for schools and companies.

Delay in some services for companies due to impact of the coronavirus lockdown.

	FY2019	FY2020	FY2020	FY2020
(million yen)
	Q2 revised		Full-year
	Q2 actual	forecast	Q2 actual	revised forecast
		(Jun 1st)		(Aug 13th)
Net sales	596	411	391	825
(iStudy	475	411	391	825
Excluding net sales)
Operating profit	△35	40	40	90
(Rate)	(-%)	(9.7%)	(10.2%)	(10.9%)

(thousand SGD)	WizlearnSales Breakdown
14,000
12,000
10,000
8,000
6,627	6,491	5,124		3,470
6,000
4,000
										4,940
2,000	3,120	3,655	4,053
0
	FY17		FY18		FY19	FY2020
											prospects
			For companies				For schools
			Neighboring countries				Other support, etc.

----------Factors of change ----------

[Sales]

・ Until FY19.Q1: iStudy (currently Kushim) consolidated ・ Wizlearn sales account for approximately 90%

[Profit] Wizlearn

・ Schools: Secure stable profit margins with recurring revenue

・ Companies: Stock revenue + specific customized projects

Copyright © V-cube, Inc. All Rights Reserved.	20

Appliance business

Delivery delays continue in Telecube due to covid 19 pandemic.

Although sales to corporate customers fell short of the plan, increased significantly compared to the previous year.

	FY2019	FY2020	FY2020	FY2020
(million yen)
	Q2 forecast		Full-year
	Q2 actual	Q2 actual	forecast
	(6/1 revised)
			(8/13 revised)
Net sales	500	691	529	1,510
Operating profit	51	93	66	203
(Rate)	(10.2%)	(13.5%)	(12.5%)	(13.4%)

Number of Telecube installation(quarterly)

			corporate		corporate(subsc)		public space
						25
(Units)			9
							23
							18
				37	240
				15
						156
3
10	80	91
66
43

FY19.1Q FY19.2Q FY19.3Q FY19.4Q FY20.1Q FY20.2Q

Number of Telecube installation (total)

corporate

corporate(subsc）

public space

113

27

(Units)

90

9

65 715

50 559

	13	319
10	148	228
82

FY19.1Q FY19.2Q FY19.3Q FY19.4Q FY20.1Q FY20.2Q

Copyright © V-cube, Inc. All Rights Reserved.	21

Telecube Business Outline

To be the social infrastructure that provides a place to telework.

Due to the impact of the coronavirus, demand from the public sector is increasing in living areas, while demand from the corporate sector is increasing for private rooms where employees can work safely.

In the future, aim to expand the use other than telework such as governmental procedures.

	Classification	Commercial	Sales Models on our	Remarks	FY2020 target
		distribution	viewpoint
		Direct sales &	Sellout	Use of private space, such as	500 to 1000 units
		shortage of conference rooms and
	For corporates	regular distributor	Subscription	(396 at the time of 2Q)
			work concentration
	(FY19:280 units)
		Sales agency of	Royalty income	Record royalty income not
		OKAMURA	entering the commercial flow
		Telecube		To install in office entrances,
		Services	Sellout	complexes, and private railway	200 to 400 units
		Inc.		stations
	For public spaces				JR East: "STATION
				BOOTH" scheduled to be
	(FY19:65 units)
			Established as "STATION BOOTH"	deployed to 30 stations
		JR East	Sellout	in the station premises	in 2020 (delayed due to
		the corona problems)
		Introduced to "STATION DESK", a
				shared office
Average Prices per Unit (FY2020) Sell-out: 2,982 thousand yen Subscription: 85 thousand yen
Copyright © V-cube, Inc. All Rights Reserved.			22

1. Progress of the Business in Covid 19 Pandemic

1. FY2020 Q2 Results
2. Segments and KPIs
3. Current Initiatives

5. Appendix

Copyright © V-cube, Inc. All Rights Reserved.

FY2020 Forecast (Revised Forecast on August 13, 2020)

Operating profit forecast revised upward from 500 million yen to 700 million yen

		FY2019	FY2020	YoY
(million yen)
	Full-year results	Revised forecast	Change		Rate of change
		(Aug 13th)
Net sales	6,369	7,201	+832		+13.1%
Cost of sales	4,056	3,988	△68		△1.7%
Gross profit	2,313	3,183	+870		+37.6%
SG & A Exp.	2,598	2,474	△124		△4.8%
Operating profit	△284	708	+992		ー %
Ordinary profit	△341	665	+1,006		ー %
Profit attributable to	34	623	+579		+1,732.4%
owners of parent

Targets: Net sales 7.8 billion yen, Operating profit 900 million yen

Copyright © V-cube, Inc. All Rights Reserved.	24

V-cube's Strategy

Growth Strategy: Communication DX "SaaS + Service"

		SaaS	+		Service
DX support through technology	DX support through professional services
V-CUBEmeeting
	Transformation of		×		Establishment of
				Communication Culture			Communication Culture
				⇒ Introduction support				⇒ Operational support

To increase the number of		Establishment of a model specializing in		Strengthening Support Capabilities
subscribers		the industry

Enhancement of service lineup	High added value through	Increase in the number and unit
tailored to	customization tailored to	price of projects through
the communication scene	business practices and business	operanal support and
	flow	the establishment of culture
Copyright © V-cube, Inc. All Rights Reserved.		25

V-cube's Strategy

(e.g.) SaaS + Service in event delivery

SaaS	+	Service
DX support through technology	DX support through professional services

Transformation of	×	Establishment of
Communication Culture	Communication Culture
Introduction support		Operational support

To increase the number of		Establishment of a model specializing in		Strengthening Support Capabilities
subscribers		the industry

Shift from Offline to Online	Job fair	Extensive support in studios,
Industry-wide expansion	Virtual shareholder's meeting	conference rooms and other
Upselling by improving efficiency	Pharmaceutical web seminar	locations
	In-house training/meetings
Copyright © V-cube, Inc. All Rights Reserved.		26

Featured Solutions - SDK(Software Development Kit)

Implement a video communication service with high quality video and audio functions to match the UI of other companies' services

Increasing demand for online service launches and enhancements, and use is rapidly increasing

Live distribution platform

Live for PCs and smartphones Large-scale video distribution service infrastructure

Online interactive platform

Interactive visual communication infrastructure

・ Online English conversation school

・ Online fitness

・ Online hiring interview

Number of minutes of use of SDK

2019/01

2019/02

2019/03

2019/04

2019/05

2019/06

2019/07

2019/08

2019/09

2019/10

2019/11

2019/12

2020/01

2020/02

2020/03

2020/04

2020/05

2020/06

2020/07

Copyright © V-cube, Inc. All Rights Reserved.	27

Communication DX Company

Copyright © V-cube, Inc. All Rights Reserved.	28

1. Progress of the Business in Covid 19 Pandemic

1. FY2020 Q2 Results
2. Segment and KPIs
3. Current Initiatives
4. Appendix

Copyright © V-cube, Inc. All Rights Reserved.

Mission Statement

Provide Even Opportunity to Everybody

We want to create a world where everyone can get even opportunity in any circumstances.

We believe that we can realize more affluent society

by reducing the time and distance of face-to-face communication.

The world is facing social issues such as extreme concentration of population and industry in

city area, declining birthrate and aging society, long working hours, educational and

healthcare gaps, etc.

We aim to provide even opportunity to everybody

by solving these social issues with our Visual Communication solutions.

Copyright © V-cube, Inc. All Rights Reserved.

Initiatives for SDGs

V-cube resolves social issues through business operations

Visual communication eliminates time and distance limitations so that

everyone has equal access to education, employment, health care, and other

opportunities.

Contributing to the realization of diverse working styles tailored to individual circumstances, regardless of gender or region of residence

The widespread use of telework will reduce the burden of travel and contribute to the realization of a society where people can work and live comfortably.

Meetings can be held and countermeasures can be considered even in the event

of a disaster or other emergency without having to come to work.

Telework has become the norm, reducing wasteful travel and

contributing to the reduction of CO2 emissions associated with travel.

Copyright © V-cube, Inc. All Rights Reserved.	31

Segment Overview

Visual Communication Business

• V-CUBEMeeting ; V-CUBE Seminar ; V-CUBE Video SDK ; V-CUBE Salesplus ; Agora.io ; Krisp; Qumu
• V-cube'sservice lineup at each subsidiary

Learning Management System Business

• [Wizlearn Technologies Pte. Ltd.] AsknLearn

Appliance Business

• Telecube, V-CUBE Box, V-CUBE devices (microphones, speakers, cameras, etc.), and V-CUBE boards (disaster countermeasure solutions)

Copyright © V-cube, Inc. All Rights Reserved.	32

Corporate Summary (As of June 30, 2020)

Communication DX Company

Company name

Established

Fiscal year end

Capital (including capital

reserve)

Listed Markets

Group companies

Number of members

V-cube, Inc.

October 16, 1998

December

2,881 million JPY

The 1st Section of the Tokyo Stock Exchange (3681)

Domestic 3, Overseas 5.

(3 in Singapore, 1 in United States, 1 in Thailand.)

Board members 15・ Employees 370(consolidated)

*As of June 30, 2019

Copyright © V-cube, Inc. All Rights Reserved.

Group Companies (As of June 30, 2020)

V-cube, Inc. and 6 subsidiaries operate in Japan, USA and ASEAN area.

Singapore

V-cube,Inc.

	Telecube,Inc.		V-cube Global Services Pte. Ltd.		V-cube USA, Inc.

Telecube Service,Co.Ltd.

※Equity Method Affiliate

Wizlearn Technologies Pte. Ltd.

V-cube (Thailand) Co., Ltd.

Pave Education Pte. Ltd.

Other group company: SENSYN ROBOTICS, Inc.

Copyright © V-cube, Inc. All Rights Reserved.

Company History

Established V-cube Internet Co., Ltd. and undertook web production, system development, and app development on consignment

											Reorganized as a joint-stock company
													Began developing and selling web conferencing for in-house use due to high video conferencing costs
															Renamed as V-cube,Inc. and decided to specialize in visual communications
																		Started investing from Intel Capital and expanding business in Asian countries
																					Listed its shares on the MOTHERS
																							Listing on TSE First Section
					1998	2001	2004	2009	2012	2013	2014	2015	2016	2017	2018	2019	2020
											2003 V-cube USA, INC
													2009 V-cube Malaysia Sdn. Bhd.						Sale
																2012 V-cube Global Services Pte. Ltd. Singapore
		Net sales (million yen)							2012 PT. V-cube INDONESIA					Sale
												2013 V-Cube (Tianjin) Technologies Co., Ltd.		Sale
				Associated company
								7,960
				Non-consolidated	7,239							2014 Pioneer VC				Sold electronic smart board business after merger
				6,638
				Overseas ratio 6,083					6,369				2015 Wizlearn Technologies Pte. Ltd.
				26.5%
					4,681	21.4%													2015 iStudy Co., Ltd.
									17.1%												Sale
	2,525 14.7%							15.6%							2016 V-cube (Thailand) Co., Ltd.
											19.8%
	9.5%			3,540			3,972	3,483	5,924	5,020								2019 Telecube
	3,149
	2,419
	2013	2014		2015			2016	2017	2018	2019
Copyright © V-cube, Inc. All Rights Reserved.														35

Exchange rates of major currencies

			FY19		FY20
Full year	Full year	Yearly average	Year-end	Full year
(Initial
		(Results)	(Results)	(assumption)
	(Yen)	expectations)
	US$	111.00	109.06	109.55	111.00
	S$	81.00	79.95	81.06	81.00
Q2	FY19 Q2	FY20 Q2	FY19 Q2	FY20 Q2
Yearly	Yearly average	Year-end	Year-end
		average
		(Results)	(Results)	(Results)
	(Yen)	(Results)
	US$	110.06	108.30	106.27	107.74
	S$	80.99	77.47	81.01	77.32
Copyright © V-cube, Inc. All Rights Reserved.				36

Management Team (as of June 30, 2020)

Management team consisting mainly of members from the time of founding

President,CEO & FounderManaging Director,CRO

Naoaki Mashita	Jun Mizutani
1977	Born in Tokyo	2006	Entered V-cube Inc. (as new graduate)
1988	Established V-cube Inc.	2009	Group Manager of Sales Division
2000	Graduated from Keio University	2012	Vice manager of Sales Division
2002	Graduated from Keio Graduate School	2014	Manager of Customer Experience
2003	Established V-cube USA, Inc.	2015	General Manager of Sales Division
2009	Established V-cube Malaysia	2016	Director of V-cube Inc. (in charge of sales)
2012	Established V-cube@Singapore	2019	Managing Director of V-cube Inc.
2012	Established P.T. V-cube Indonesia

2015 Established V-cube Robotics

Vice President,COO	CTO
Masaya Takada	Yosuke Kamesaki

2001 Director of V-cube Internet Co., Ltd.

2002 Graduated from Keio Graduate School

2006 Vice president of V-cube Inc.

2012 Executive Vice President of V-cube Inc.

2002 Joined V-cube Internet Co., Ltd.

2003 Developed the prototype for the web conference

2007 Executive Officer of V-cube Inc.

2012 Director of V-cube Inc. (in charge of technology)

Copyright © V-cube, Inc. All Rights Reserved.	37

Outside directors (as of June 30, 2020)

Corporate Governance by Experienced and Strong Outside Directors and Audit & Supervisory Board Members

Title	Name	Career summary
		Representative director, Murakami Norio Office,Inc.
Outside director	Norio Murakami	Outside director, Cell Source Co.,Ltd. ,
		Former Vice president, Google, Inc. and President, Google,Inc.
		Outside director, Hakusan.Inc.
Outside director	Kenichi Nishimura	Former President, NTT-Neomeit
		Former Advisor, Mirait,Inc.
Outside director	Hajime Nakano	Senior director, Reginal Economy Vitalization Corporation of Japan
Director, REVIC Partners
Outside director	Naomi Koshi	Former attorney for Nishimura Asahi Law Office
Former mayor of Otsu City
Full-time outside	Kikuo Fukushima	Representative, Success Coaching Studio
auditor
Outside auditor	Kiyoji Odashima	Representative tax attorney, Odajima Kiyoji Tax Account Office
Outside auditor, Ebara Foods Industry,Inc.
Outside auditor	Arifumi Sunada	Senior director, Reginal Economy Vitalization Corporation of Japan
Senior director, REVIC Partners

Copyright © V-cube, Inc. All Rights Reserved.	38

Status of Group Employees (as of June 30, 2020)

						By group												By region									By function
						V-cube		Subsidiaries			Japan		Singapore			Others						Technical		Sales			Admn.
												402
402									402					370	370
		370
													9								52
																			15	59
166									153
		127									108	129
																											131
236			234					240					247	221	180
'19/12		'20/6				'19/12					'20/6	'19/12	'20/6
																			Number of Staff
500			450									V-cube		Subsidiaries
													457					420	402	370
				296
					201					213					174	166
																									136
204			249					244					246	236		234
'16/12			'17/12				'18/12					'19/6	'19/12	'20/6
Copyright © V-cube, Inc. All Rights Reserved.																													39

Disclaimer

This documents contains forecast, target, plans and other future-related information of V-cube,

Inc. (including all subsidiaries). This information stated in this documents is based on the information at hand when creating this document. The statements in this document is based on the aforementioned principle. The statements and prerequisite stated in this documents is only a prediction and forecast of the future, we do not guarantee all statements will be realized

in the future. Please refer to V-cube's summary of accounts, securities report, disclosure

magazines, annual report, etc., for uncertainty and risks of the information in this document. The information in this documents was received at the time of creating this documents, thus for changes occurred after the creating of the documents, V-cube does not resume responsibility of updating the information. Your understanding is appreciated.

Information disclosed regarding other companies in this document are from public releases, in case of misinterpretation, V-cube do not guarantee the accuracy of this information. V-cube does not resume responsibility for any misinterpretation, mistake, or damages caused by the use of this document and the data used in this documents. Your understanding is appreciated. V-cube claims all rights of this documents, please do not by any means or purposes, electronically or mechanically copy or forward this documents.

Copyright © V-cube, Inc. All Rights Reserved.