Vision : (FY2020-2Q)Financial Results for 2Q Fiscal Year December 2020

Vision : (FY2020-2Q)Financial Results for 2Q Fiscal Year December 2020

Vision Inc.

Equities

9416

JP3800330007

Integrated Telecommunications Services

Company Profile

Analysts' Consensus

Latest news about Vision Inc.

Chart Vision Inc.

Income Statement Evolution

Ratings for Vision Inc.

EPS Revisions

Quarterly earnings - Rate of surprise

Sector Other Integrated Telecommunications Services

August 17, 2020 at 02:03 am EDT

2nd Quarter FY2020

Financial Results

August 17, 2020 Vision Inc.

(1st Section of the Tokyo Stock Exchange, code： 9416)

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	P.16
on with COVID-19 and after COVID-19)

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

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

(JPYmn, %)

Items

Sales

FY2019/2Q Result

Gross profit

FY2019/2Q Result

EBITDA

FY2019/2Q Result

Operating profit or loss (-)

FY2019/2Q Result

Recurring profit

FY2019/2Q Result

Profit or loss (-) attributable

to owners of parent

FY2019/2Q Result

FY2020/2Q Result	Change
Amount	Composition	Amount	Percentage
ratio

9,630	100.0	-3,307	-25.6
12,937	100.0	+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
1,673	12.9	+428	+34.4
-1,352	-14.0	-2,427	－
1,075	8.3	+265	+32.9

Factors for Change in Operating Profit

(JPYmn)

1,690	Operating profit

	-JPY1,705mn

	-3,307		-15

		Gross profit
		-JPY2,673mn
		(-35.7%)
		Cost of sales-+968
		to-sales
		ratio
		+7.9% points
			SG&A-to-sales ratio
		+633	+5.4% points
	営業	営業

	利益率		利益率
	15.1％		8.1％
FY2019/2Q Sales	Cost	SG&A FY2020/2Q
			expenses

Operating profit margin -0.2％ (Approx. -13.2% points YoY)

Sale

"GLOBAL WiFi" Business

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.

Information and Communications Service Business

Sales of cost reduction products and mobile communication equipment (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 of sales recording was delayed.

Cost of sales

"GLOBAL WiFi" Business

Increase cost of sales-to-sales ratio due to sales decrease.

Information and Communications Service Business

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

SG&A expenses

Decrease SG&A-to-sales ratio due to review and reduction of various expenses.

Advertising expenses (listing, etc.), performance-linked bonus, shipping expenses, travel expenses, supplies expense, etc.

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%

Segment result

			(JPYmn, %)
FY2020/2Q	FY2019/2Q	Change
Result	Result

Amount	Amount	Amount	Percentage

Sales

Segment

profit or loss

(-)

"GLOBAL WiFi"

Information and Communications Service

Subtotal

Others

Adjustments

Total (Cons.)

"GLOBAL WiFi"

Profit margin

Information and Communications Service

Profit margin

Subtotal

Others

Adjustments

Total (Cons.)

4,634	8,184	-3,550	-43.4
4,520	4,509	+11	+0.2
9,154	12,694	-3,539	-27.9
478	247	+230	+93.2
-2	-4	+2	－
9,630	12,937	-3,307	-25.6
-20	1,596	-1,617	－
-0.5	19.5	-20.0	－
817	832	-15	-1.8
18.1	18.5	-0.4	－
796	2,428	-1,632	-67.2
-306	-157	-148	－
-504	-580	+75	－
-15	1,690	-1,705	－

"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.	(JPYmn)

1Q		SALES
2Q				17,732
3Q

4Q			+31.3%
			13,505 4,462
		+30.0%
		10,392	3,589	5,084
	+31.8%

	7,882	2,636	3,929
+30.6%
6,035	2,073	3,022		4,109
1,602			-43.4%
2,329		2,898
1,826	2,226		1,286

1,697
1,308	2,505	3,089	4,075	3,347
1,297	1,781


FY2015	FY2016	FY2017	FY2018	FY2019	FY2020

1Q SEGMENT PROFIT OR LOSS ( -)

2Q					3,301
3Q				+36.8%	430
4Q

				2,413
			+51.5%	495	1,274
		+39.7%	1,593
			224	769
	1,140	631		724
+92.2%	245	448
593

	494	271
114			871
			701
256		146	466

60		252			326
162
						-347
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.

Information and Communications Service Business Performance Change

Sales of cost reduction products and mobile communication equipment (for teleworking, etc.) were strong.

Develop sales activities that accurately capture the companies' needs to reduce costs and

support 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			SALES				1Q	SEGMENT PROFIT

2Q								2Q
3Q				+15.2%8,955			3Q					1,363
4Q
					4Q		+3.9%	+11.9%
	+2.2%	+9.4%	7,775	2,115					1,172	1,218	188
					+14.4%
+7.9%	6,948	7,104	1,970					1,024	285		212	342
6,440							+13.4%
	1,730	1,725					903	219
1,673		2,330								-1.8%
						214				371
				+0.2%			287
				1,977
		1,786				244			350	299
	1,749
1,601					221
				2,207	2,004
								316		337
	1,764	1,782	2,009					296

1,629				269
												517
					2,302	2,515							482
1,536	1,703	1,810	1,818		198	264	282		296



F Y 2 0 1 5 F Y 2 0 1 6 F Y 2 0 1 7 F Y 2 0 1 8 F Y 2 0 1 9 F Y 2 0 2 0	F Y 2 0 1 5 F Y 2 0 1 6 F Y 2 0 1 7 F Y 2 0 1 8 F Y 2 0 1 9 F Y 2 0 2 0

(Note) Regarding the quarterly results in FY2015, the year-on-year ratio is for reference, because the quarterly financial statements have not been prepared.

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, and other factors.

(JPYmn, ％)

	As of Jun.	As of Mar.	Change	As of Dec.	Change
	30, 2020	31, 2020	31, 2019

	Amount	Amount	Amount	Percentage	Amount	Amount	Percentage

Current assets	8,580	9,965	-1,384	-13.9%	11,792	-3,211	-27.2%
Cash and deposits	5,738	6,864	-1,125	-16.4%	8,485	-2,746	-32.4%
Non-current assets	2,313	3,173	-859	-27.1%	3,381	-1,067	-31.6%
Total assets	10,894	13,138	-2,243	-17.1%	15,173	-4,278	-28.2%
Current liabilities	2,304	3,058	-753	-24.7%	4,222	-1,918	-45.4%
Non-current liabilities	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 and	10,894	13,138	-2,243	-17.1%	15,173	-4,278	28.2%
net assets

Equity ratio	78.4%	76.3%	2.1%	－	71.7%	+6.7%	－

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	5.73
as of Jun. 30, 2020

Commitment line set 3.00 in May 2020

Other 0.25 overdraft lines

Total	8.98
real cash on hand

Possible to maintain stability of BS;

Shareholders' equity ratio would be around 60%*,

even if executing all commitment lines.

(Ref.: Equity ratio 78.4%, as of Jun. 30, 2020)

The equity ratio when all commitment lines and overdraft lines are executed, based on the consolidated balance sheet as of June 30, 2020.

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 of

approx. 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 business performance due to the special factor of COVID-19.

* Wi-Fi router, options, software, equipment, etc.

From the second half of FY2020, the depreciation of our Group will be reduced for these assets.

FY2020 3Q-4Q (cumulative):

Approx. JPY372mn

FY2021 1Q-4Q (cumulative):

Approx. JPY414mn

FY2020 Forecast of Financial Results

Copyright(C) 2020 VISION INC. All Rights Reserved.	12

FY2020 Forecast of Financial Results

Sales: -38.9％ YoY, and Operating loss: -JPY320mn

(JPYmn, %)

Items

Sales

FY2019 Result

Gross profit

FY2019 Result

Operating profit or loss (-)

FY2019 Result

Recurring profit or loss (-)

FY2019 Result

Profit or loss (-) attributable

to owners of parent

FY2019 Result

FY2020 Forecast	Change
Amount	Composition	Amount	Percentage
ratio

16,700	100.0	-10,618	-38.9
27,318	100.0	+5,814	+27.0
8,883	53.2	-6,806	-43.4
15,690	57.4	+3,040	+24.0
-320	-1.9	-3,645	－
3,325	12.2	+840	+33.8
-213	-1.3	-3,572	－
3,358	12.3	+859	+34.4
-1,601	-9.6	-3,828	－
2,226	8.1	+696	+45.6

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

FY2020FY2019

ForecastResult

Change

		Amount	Amount	Amount	Percentage
	"GLOBAL WiFi"	6,971	17,732	-10,761	-60.7
	Information and	9,079	8,955	+123	+1.4
	Communications Service

Sales	Subtotal	16,050	26,688	-10,638	-39.9

Others

Adjustments

661	637	+23	+3.8
-11	-7	-4	－

	Total (Cons.)	16,700	27,318	-10,618	-38.9
	"GLOBAL WiFi"	-234	3,301	-3,536	－
	Profit margin	-3.4	18.6	-22.0	－
	Information and	1,400	1,363	+37	+2.7
	Communications Service

Segment	Profit margin	15.4	15.2	+0.2	－
profit or loss
	1,165	4,665	-3,499	-75.0
(-)	Subtotal
	Others	-413	-266	-147	－
	Adjustments	-1,072	-1,073	+1	－
	Total (Cons.)	-320	3,325	-3,645	－

Performance for the Full Year (Quarterly Change)


							(JPYmn, %)
			1Q	２Ｑ	３Ｑ	４Ｑ	FY
		Sales	4,326	4,024	4,827	4,377	17,554
		Composition ratio (vs. FY)	24.6	22.9	27.5	24.9	－
FY2017	Operating profit	513	336	688	249	1,788
		Composition ratio (vs. FY)	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
		Composition ratio (vs. FY)	22.9	22.9	27.7	26.4	－
FY2018	Operating profit	736	499	900	348	2,484
		Composition ratio (vs. FY)	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
		Composition ratio (vs. FY)	23.7	23.7	27.9	24.8	－
FY2019	Operating profit	980	710	1,280	354	3,325
		Composition ratio (vs. FY)	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			16,700
		Composition ratio (vs. FY)	－	－			－
FY2020	Operating profit or loss (-)	488	-503			-320
		Composition ratio (vs. FY)	－	－			－
		Operating profit margin	8.1	-13.8			-1.9

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

Policy

"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.

Accelerate 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 established companies.

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 been roughly completed.

After 3Q, make the most of the experience and know-how cultivated as 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" Business

Current Situation and Future Policy

Current

situation

Policy

The number of overseas travelers is almost zero.

Number of overseas travelers from April to June*: Both outbound and inbound decreased 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, assuming that 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 of a mobile Wi-Fi for educational institutions and local governments.

Actively expand domestic plan options of "Global WiFi for Biz" for corporate customers.

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).

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 and Communications Service Business etc. Use employment adjustment subsidy (for businesses affected by the COVID-19 pandemic), and employment adjustment (leave) for some personnel.

Cost reduction

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 time by switching to business negotiation with Zoom.

Shipping center

Utilize as a shipping center for other businesses such as Information and Communications Service Business (reduce outsourcing costs for the entire group).

New services

Plan and develop new services for corporate and individual customers traveling overseas.

Business tie-ups with domestic and overseas business partners other than "GLOBAL WiFi" Business.

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

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 our company for the internet communication environment, which has been an issue for inbound measures, through the partnership with local governments.

*Osaka introduced 3,300 units, and we are also currently in negotiation with the Board of Education etc. in other regions.

"GLOBAL WiFi for Biz" for corporate customers

Actively expand sales of domestic plan options.

< Wi-Fi rental for corporate teleworking >

Over	Zero	Corporate
100units
office	plan
available
fee	available

Available in Japan / For online classes

Wi-Fi rental for teleworking

For details

< Wi-Fi rental for educational institutions & local governments >

Online class

School Concept

Dedicated dial for local governments and educational organizations

For school and educators

Wi-Fi rental for online classes

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

Introduction record: Used by many schools for online class.

Tokyo University, Waseda University, Seijo University, Hokkaido University of 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

"GLOBAL WiFi" Business Profit Structure

Items

Sales

Cost of sales

SG&A expenses

Summary

Overseas

Regular rental：

Rental price per day × number of days used

Average: JPY1,000/day, Average number of days used: 7 days

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)

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.

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.

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 unless communication occurs.

For most of the SIMs for overseas use with some fixed charge, no communication cost is incurred because of suspension, 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)
COST	SEGMENT PROFIT OR LOSS (-)

1,093 1,156
			225
777			178

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

Overseas	210	271	129	10	17	7
telecom cost

							Jan.	Feb.
(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.

-90	-107	-88

	-182
Mar.	Apr. May Jun.

Utilize "CLOUD Wi-Fi Router"

A Wi-Fi router with next-generation communication technology that manages SIM on the cloud

No 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 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 turning on the power!

Store SIMs all over the world on the cloud

Pick-up at Convenience Store Started

Based on user's convenience, start a service you can pick-up a Wi-Fi router at Seven- Eleven 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-Elevennear you.

At Seven-Eleven

near you

At anytime

Ready-to-go

in advance

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

You can pick it up even at midnight if the store is open.

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

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 counters

in the industry

Receive and Return according to

customers' needs

At the airport		By delivery

Airport and other places to receive/return

in Japan

Hokuriku/Koshinetsu Hokkaido/Tohoku

Niigata Airport	New Chitose Airport★
Komatsu Airport★	Asahikawa Airport
Kyushu/Okinawa	Sendai Airport
Fukuoka 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	Shizuoka Airport
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)

Features

Non-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 to secure human resources.

Also install vending machines for pre-paid SIM for domestic use mainly for foreign travelers visiting

Japan and those who are temporarily back to Japan. Available to add touch points with space-saving and

low-cost (improve convenience and increase profits).

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 and videos, 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 used without worrying about data capacity.
Choice ratio of unlimited plan increased in both corporate and individual users (over 30%). ⇒ Improve ARPU.

Data	Start offering an unlimited plan
capacity

Further expanded	Available in 91 countries
the coverage area.

What's an unlimited plan?

"Unlimited plan" with unlimited data capacity was born from the voice of customers who want to use without worrying about the data capacity.

Changes in the number

of service countries

Feb. 2019	4
Jun. 2019	71
Sep. 2019	72
Dec. 2019	73
Mar. 2020	74
Jun. 2020	91

Information and Communications Service Business Current Situation and Future Policy

Current

situation

A sudden change in work style associated with the spread of COVID-19.

Respond 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 of leasing examinations coming from the spread of COVID-19, however the situation became normal after the state of emergency was lifted.

Policy

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

Vision Web Service: VWS series

SNS for business: JANDI

Web meeting and online business negotiation system: meet in Telephone agency service: te-le-re Plan and sell in-house operated and renovated services at any time.

Sales style that is not tied to working place

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 (no travel 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

Provide various telecommunication discount services.

Website low price production and maintenance service.

Provide products and services with less initial installation costs.

Hybrid Synergy model

Web marketing + CLT (customer center) + sales Cross-function organizational structure.

Make the most of our customers' assets.

Escalation (cooperation between divisions, customer introduction)

Increase stock revenue

In addition to existing stock revenue, expand profits by developing in-house services including online services, corporate mobile maintenance service "Garasapo," website maintenance service, strengthen sales such as LED sales, etc.

Increase customers by business

alliance.27

Information and Communications Service Business Business Model

"Vision Hybrid Synergy model"

Existing users

Sales improvement

The business model built for 25 years since its

needs

Cross selling

foundation has been developed to all

Up selling

Cost reduction

needs

Efficiency

businesses such as "GLOBAL WiFi" business.

(Pull)

CLT

improvement

Corporate sales strength (structure, know-how,

Communication needs

various sales channels)

Cross selling

Improve customer

activation needs

Up selling

satisfaction

DX promotion

Multi-job

Membership

Apparent needs that

User relationship promotion

customers are aware of

strategy

Existing users

Marketing

Enhance

Subscription

Management

escalation

promotion

Develop new

Strategy Promote productivity

Video

.com websites,

customers Landing pages (LP)

marketing

Assets

Analyze customer

improvement

(Pull)

SNS&email

Big data

Improve gross profit,

Strategy

attributes

marketing

Targeting

gross profit margin

planning

Global

DX promotion

and absolute amount

marketing

Strategic investment

Improve

(M&A, alliance)

procurement

Sales improvement

Sales Improve

needs

In-house SaaS

average value

Cost reduction

promotion

(escalation, visits,

acquisitions)

Existing users

needs

Efficiency

DX promotion

Potential needs that

Cross selling

improvement

Enhance

Enhance sales,

Up selling

Communication needs

customers are

unaware of

partner, FC

telemarketing

(Push)

activation needs

Sales contact

center

Develop new customers

Definite targeting, timing

DX promotion

(Push)	sales, Life Time Value

New users

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


Proposal	Subscription and Delivery		Follow-up
Contract		procedure

Arrange schedule	Decide
in details

Support Hearing

Various	Installation	Offer
arrangements	Delivery	information

"High Efficiency" Marketing

"High efficiency" marketing with combined three factors: web marketing × sales rep × CLT

New Existing

customers customers


Acquire highly				Hear
			customers'
reliable actual
			problems and
demand
			needs
	Proposal


		with high
		precision

CooperationCooperation

Web marketing

team

Sales rep

Customer Loyalty

Team (CLT)

Escalation

(Cooperation among Divisions, Customer Referral)

Organization culture that creates continuous evolution

High productivity created by escalation system (cooperation among divisions and customer referral)

Customers

Improve productivity through flat and open culture,

and the "escalation system" promoting cooperation among divisions

Cooperation

Offer products and services suitable for the business environment

Offer in-houseproducts and services

Consulting services suitable for the business growth

Stock-type Business Model

Offer optimum solutions according to the growth stage, continuing close to the growth of customer companies.

Structure that accumulates profits by our original know-how CRM (customer relations/continuous dealings).

	Offer OA equipment
	and website support
	etc. suitable for the	Optimum
	business environment
	solutions stage
	Consulting services
Optimum	suitable for the
solutions	business growth stage

Optimum solutions

Further growth

stage

	Early growth	Increase members
	stage
	coming from expansion
Startup		(Add communication
Increase members	lines, and numbers
stage
coming from expansion	of units, etc.)
	(Add communication
	lines, and numbers
	of units, etc.)

Current main targets	Future targets
"Reserves for Growth"	"Enterprises in growth stages"

Maximize Productivity per Person

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

Success spiral components

	Improve
	productivity
	per person
	Competitive
	advantage
Improve	Low price (low gross profit), product lineup
economic
Incentives, purchasing conditions conditions	Increase
Successful	sales
Accumulate experience and know-how
experience

(contract)	Many
Accumulate experience and know-how	negotiation
experiences

Maximize
number of	Corporate
negotiation
culture
Inflow to our website

Telemarketing
Escalation

Provide Products and Services Responding to

Changes in Work Styles

In-house developed or used services are expanded to users.

Provide the required functionality in the cloud as needed.

Reduce users' costs (installation and running).

Expand the VWS (Vision Web Service) series.

VWS series	SNS for business（JANDI)
(Attendance, workflow)

精算

申請

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 and meetings.

Main features:

Material/screen sharing, contract signing and sealing, multi-person connection, business card exchange, recording, questionnaire

Web meeting and online business negotiation system

If you are online, you can always have online business negotiation, wherever you are in the world.

Start providing "tele receptionist (te-le-re)," a telephone agency service.

Start providing a telephone agency service, responding to the voice of "Teleworking companies are worried 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)"

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!			Reliable staff		How to use!
	Abundant			All from 3,980
Website update		design materials	before opening		Support desk	yen/month

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	Strengthen corporate governance	Related main SDG items
Promote ECO and recycling	Promote risk management

Activities to support disaster areas	Strengthen compliance

EnvironmentGovernance

Social

Recruitment/Employment		Work-style Reform

Various recruitment channels		Personnel system suitable for the
	times
Recruitment advantages
	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 in disaster 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 conference	Electronic form (workflow)
Utilize internal SNS

Select recyclable suppliers

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," local

group to support disabled people; continuously awarded since 2015).

Introduced personnel system suitable to the times and unique benefits.

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, and performance-linked bonus.

Robot automatically processes routine tasks, etc.

Data	Invoice
OK
Email
!

Input

Social Activities

"Vision Kids Nursery" run as company-led childcare business

For 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, where female 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

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 the founder 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-scaledisaster-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 them

by offering GLOBAL WiFi for free,

and by donating a part of our sales.

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.

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"

Purpose

Taking into cash on hand, share price, and other factors comprehensively, conduct acquisition of treasury shares flexibly to improve capital efficiency.

Items

Class of shares acquired

Total number of shares acquired

Total acquisition price of shares

Acquisition period

Details

Common stock of the Company

909,000 shares

Percentage of issued shares (excluding treasury shares): 1.89%

JPY985,974,100

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

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
(100 shares per stock acquisition right, 1,356,000 shares of common stock)

Issue price	JPY1,600 per stock acquisition right
Total issue price	JPY3,510,684,000
Target	Directors (excluding outside directors), employees, and employees of the
subsidiaries: 163 people, 13,560 units

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


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


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


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

To Contribute to the Global Information and

Communications Revolution

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 from these statements.

These risks and uncertainties include general industry and market conditions, and general domestic 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 obligated to update and revise the "forward-looking statements" included in this announcement.

Vision Inc.

Contact： Investor Relations Dept.

ir@vision-net.co.jp

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Vision Inc. published this content on 17 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 August 2020 06:02:13 UTC

Delayed Japan Exchange Other stock markets 02:00:00 2024-04-23 am EDT			5-day change	1st Jan Change
1,075 ^JPY	+5.50%		+2.67%	-12.60%

Apr. 23	Vision Inc. Revises Dividend Guidance for the End of Second Quarter and Fiscal Year 2024	CI
Apr. 22	Japanese Shares End Higher Amid Receding Middle East Conflict Fears	MT

Vision Inc. Revises Dividend Guidance for the End of Second Quarter and Fiscal Year 2024	Apr. 23	CI
Japanese Shares End Higher Amid Receding Middle East Conflict Fears	Apr. 22	MT
Vision Unit to Open New Events Space Near Tokyo Metro Shibuya Station May 10; Stock Jumps 5%	Apr. 21	MT
Vision and Affiliated Companies Acquire Privacy Mark	Apr. 18	MT
Vision Inc Adds 23 Countries to Its Ultra-High-Speed 5G Coverage Area	Mar. 27	CI
Vision In Talks With Nasdaq-based uCloudlink to Establish JV	Mar. 25	MT
Vision Inc. Announces Consideration of Establishing A Joint Venture with uCloudlink Group Inc	Mar. 22	CI
Vision Partners P2P Voice Call Provider Thisis	Mar. 07	MT
Vision Inc. Announces Alliance with Thisis Inc	Mar. 06	CI
Vision Inc. Provides Consolidated Earnings Guidance for the Second Quarter and Full Year of the Fiscal Year Ending 31 December 2024	Feb. 13	CI
Vision Exhausts Shares Approved for 782 Million Yen Buy Back Program	Dec. 12	MT
Tranche Update on Vision Inc.'s Equity Buyback Plan announced on November 13, 2023.	Dec. 12	CI
Vision Inc.'s Equity Buyback announced on November 13, 2023, has closed with 670,000 shares, representing 1.37% for ¥782.9 million.	Dec. 10	CI
Vision Buys Back 366 Million Yen of Shares	Dec. 07	MT
Vision to Repurchase 670,000 shares for Up to 1 Billion Yen from Nov. 15 to March 31, 2024	Nov. 14	MT
Transcript : Vision Inc., Q3 2023 Earnings Call, Nov 13, 2023	Nov. 13
Vision Inc. announces an Equity Buyback for 670,000 shares, representing 1.37% for ¥1,000 million.	Nov. 13	CI
Vision Inc. authorizes a Buyback Plan.	Nov. 12	CI
Raksul Inc. completed the acquisition of 94.87928% in AmidA Holdings Co.,Ltd. from a group of shareholders for approximately ¥3.8 billion.	23-09-24	CI
Vision Inc. Launches Ultra-High-Speed 5G Plan for Global Wifi for Biz	23-09-13	CI
Vision Inc. Launches its Own Broadband Service to Increase Customer Satisfaction Through Comprehensive and Sustainable Transactions	23-09-04	CI
Vision Opens Japan's 'First Private Hot Springs Inn'	23-09-04	MT
Vision Inc. Revises Consolidated Earnings Guidance for the Full Fiscal Year Ending 31 December 2023	23-08-10	CI
Raksul Inc. agreed to acquire AmidA Holdings Co.,Ltd. from a group of shareholders for for approximately ¥4 billion.	23-08-09	CI
Vision Inc. Adds China and Hong Kong to its Ultra-High-Speed 5G Coverage Area	23-07-27	CI

	1st Jan change	Capi.
VISION INC.	-12.60%	316M
CHINA MOBILE LIMITED	+7.33%	196B
VERIZON COMMUNICATIONS	+5.31%	162B
DEUTSCHE TELEKOM AG	0.00%	114B
NIPPON TELEGRAPH AND TELEPHONE CORPORATION	-0.52%	93.44B
CHINA TELECOM CORPORATION LIMITED	+17.38%	74.75B
AMÉRICA MÓVIL, S.A.B. DE C.V.	+0.57%	56.53B
SAUDI TELECOM COMPANY	-4.83%	51.57B
EMIRATES TELECOMMUNICATIONS GROUP COMPANY	-13.44%	40.3B
CHARTER COMMUNICATIONS, INC.	-31.47%	38.27B

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