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Disclaimer Regarding Forward-looking Statements Any statements in this document, other than those of historical fact, are forward-looking statements about the future performance of V-cube, Inc. and its group companies, which are based on management’s assumptions and beliefs in light of information currently available, and involve risks and uncertainties. Actual results may differ materially from these forecasts.V-cube, Inc.
・ Cloud sales in good condition from proactive investment in sales activities also with contribution from PVC, Net Sales YoY growth of 165.9% ・Gross Profit YoY growth of 161.8% from
steady growth of high profitability cloud sales ・Operating income YoY growth of 112.3% despite aggressive investment to accelerate sales activities ・Foreign currency assets experienced foreign exchange losses, ordinary loss due to exchange rate fluctuation ・Foreign exchange losses 51 million yen (Mainly due to S$. 91.1 yen(Dec. 2014)→87.4 yen(Mar. 2015))
・Net Income is affect by the following, including exchange loss, Net loss ・Total income taxes : 19 million yen ・Non-controlling interests in income : 12 million yen (PVC)
FY2015 Q1 Consolidated Result - Business Summary -
Increase in No. of ports, slight increase in unit price Steady usage time increase to compensate slight decrease from temporary increase in FY2014 Q4 ・2014.Q3 = 4,005 yen/port ・2014.Q4 = 4,451 yen/port ・2015.Q1 = 4,469 yen/port
8
(1000 mins) (Ports)
※Usage time includes V-CUBE Meeting, S&S and Live seminar.
Maintained healthy financial state. Increased non-current assets through proactive investment thus increase software assets and goodwill.
(Million Yen)
(China subsidiary 100%, increased goodwill)
Note: The balance of intangible fixed asset as of Dec. 2014 is 2,645 million yen, including 1,806 million yen of software and software in progress account. By Mar. 2015, software asset increased to 101 million yen compared to the end of FY2014, despite software amortization cost was 122 million yen to strengthen competitive advantage through technical development.
Steady growth in Japan and grow overseas sales in China. Also continue to explore and grow opportunities in regions beside China. Target total overseas sales JPY1 billion .
15
FY2014 FY2015
Region Actual Forecast YoY
Japan 3,993 5,359 134.2%
China 590 811 137.4%
Overseas (Excl. China)
97 229 234.5%
Total 4,681 6,400 136.7%
FY2015 Forecast - (Reference) Net Sales by Geographic Region -
Aggressively expand Appliance sales in Japan and leverage high profitability cloud business to cover increase of purchasing, HR and sales cost, thus increase Operating Income.
FY2015 Forecast - Operating income Analysis (Comparison) -
From high profitability and scalable market analysis, prioritize the acceleration of top line growth. Medium term sales and income goal of JPY10 billion and JPY3 billion.
There are more than 10 companies under “Other”. ・Small size business = Low R&D Investment = Lack of features = Low investment for infrastructure ・Many large Enterprises’ “Branded” services, not their core business.
V-cube’s direction:
<Specialty Technology and Product> M&A discussion (E.g.: Pioneer Solutions, Inc.)
<Existing Customer Base> OEM Discussion
Other 15.8%
A 4.2%Ca 4.1%J 4%F 9.2%
N 13.9%
C 17.0%
V-CUBE 31.4%
[Growth Strategy] Expand existing share and explore potential
Increase market share through M&A, OEM
Cooperation based on the biggest customer base and leading technology
1. All aspects of visual communication services are available. Meeting, training, sales, support. All enterprise communication tools in one.
2. Port plan allows freedom to increase/decrease users anytime. Pricing: JPY11,000~/port/month Services are offered based on port plan. E.g. by subscribing to 10 ports, users can host 2 meeting rooms with 3 participants and 1 meeting room with 4 participants. Not just meeting,10-participant seminar is also available to host participants worldwide.
25
Meeting Document Seminar Sales & Support Portal
OFFERING [Growth Strategy] Expand existing share and explore potential
Pricing structure as a main factor of growth strategy Increase competitive advantage and port unit price by offering V-CUBE One
Key growth strategic application for increasing # of Ports Free enterprise level text chat service. Investment to increase the use of visual communication platforms.
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1. Free
2. Features tailored for enterprise use
3. Interoperable with V-CUBE services
Support all devices such as PC, tablet, smartphones. User-intuitive interface to create the ultimate user experience.
Free of charge for all users. Security is guarantee for all enterprise users.
Accommodating enterprise security policy, users can manage “who can connect, who’s connect, chat history” Also, creating enterprise group and limiting access IP is also available
Notification and reminder for web conference and web seminar integrated with V-CUBE services. Features are improved spontaneously
OFFERING [Growth Strategy] Expand existing share and explore potential
[Growth Strategy] Expand existing share and explore potential
Enhanced adaptability and flexibility through technologic innovation
1. The best Technology in the world・Connectivity, image quality, audio quality dramatic improvement ・Preparation required for contract decrease greatly → Increase contract ratio/speed ・Solution for majority of cancelation cause → decrease contract cancelation rate
2. Mobile First Design・Designed based on mobile device concept to increase adaptability ・Improve usability in mobile-centric overseas markets
3. Improved Global Infrastructure・Increased usability in developing countries such as China, etc. ・Strengthened support for South America and Europe
[Growth Strategy] Expand existing share and explore potential
Begin business alliance with Robotics such as Drones, etc. investment, cooperation in robotics industry Remote control through the cloud, visit locations instead of people, retrieve information in real-time from command center, etc.
Get the current status of places we do not have easy access to such as Factory, Tunnels, Bridges, Railroads by aerial drones.
Use V-CUBE to stream videos taken by drones and share them with people in remote locations. Understand the situation in real-time and
Business Summary・Growth StrategyDisclaimer Regarding Forward-looking Statements Any statements in this document, other than those of historical fact, are forward-looking statements about the future performance of V-cube, Inc. and its group companies, which are based on management’s assumptions and beliefs in light of information currently available, and involve risks and uncertainties. Actual results may differ materially from these forecasts.
VisionThe No. 1 Visual Communication Platform In Asia
V-cube looks to revolutionize existing communications technologies and creating new definition of communication to enable an even more affluent society.
1977 Born in Tokyo1998 Established V-cube2002 Graduated Keio Graduate School
2001 Became Executive at V-cube Internet, Inc.2002 Graduated Keio Graduate School2006 Became Executive Vice President2013 Became Executive Vice President at V-cube, Inc.
2003 Joined Trend Micro, Inc.2007 Became Executive Vice President at Situs Management Inc.2010 Joined V-cube as Officer2011 Became Director at V-cube, Inc.
2002 Joined V-cube Internet2003 Developed the 1st Web Conference model2007 Became Officer at V-cube, Inc.2012 Became Director at V-cube, Inc.
Nariyoshi OkawaCFO
1982 Joined Pioneer Corporation2008 Joined V-cube, Inc.2009 Became Officer at V-cube, Inc.2014 Became Director at V-cube, Inc.
Enabling the communication among remote locations by capturing the audio and video of individuals and streaming via Internet, without meeting face to face.
Utilizing cloud environment to make visual communication available for “anytime, anywhere, anybody”. V-cube looks to provide this platform to enterprises worldwide.
Focus on the growing market in Asia to provide the most user-intuitive service in this region and compete with other platforms provided by European/US providers. From No.1 in Japan to No.1 in Asia.
Market Status - About Visual Communication Market -
Cost
High
Low
・Extreme high cost(esp. many end-points) ・Only available in pre-determined locations ・Limited features (document sharing etc., N/A) ・Frequent malfunction of hardware (tough to maintain)
・Security Paranoia ・Bet on network stability ・Features not aligned for business use ・No support
Struggle of Users and Prospects
Strengthen Weakness of Other Markets
Difference of Web-based Video Conference and Free Video Chat
Company Name Pioneer VC, corp. (PVC)Established July 1st, 2005(New: May 1st, 2014)Acquisition Price 500M JPY for 51% sharesStructure Kiyoshi Hara CEO
Hiroyuki Mashita SVP(V-cube officer)Eiji Kohashi DirectorNaoaki Mashita Director (V-cube CEO)Nariyoshi Okawa Director (V-cube CFO)Yosuke Kamezaki Director (V-cube CTO)Masahiro Kawamura Director (Pioneer Officer)Masaya Takada Auditor(V-cube Executive Director)
Pioneer VC, Corp. (PVC)Powerful solution for manufacture, design house, public service (disaster recovery). Overturned negative profit growth after joining V-cube Group in 2014.
Budget of 670 billion JPY to implement IT solutions in Education
60
(FY2014~2017)
Pioneer VC’s learning aid system developed in April 2013, “xSync (bisync)”, was implemented in all public high schools in Soga prefecture as a part of the “One person per PC” program this spring.
The learning aid system “xSync (bisync) Soga version” was implemented in 36 schools with a total of 8,507 PCs which 1707 PCs are for teachers and 6,800 PCs are for students.
Pioneer’s Interactive Learning Aid System “xSync (bisync)”, an integrated one person per device solution for all public high schools in Saga prefecture.
Purchased approx. 8500 computers to support Soga prefectures focus on students with “own device”
Image from “xSync (Soga version)”
[Growth Strategy] Expand existing share and explore potential
Provide Marketing Service to Pharmaceutical・Equipment Manufacturers
Accelerate marketing activities of pharmaceutical companies with VC, while allowing healthcare professionals the opportunity to familiarize with visual
communication, thus creating the culture of VC in the medical market
2−1 Web Lecture Service Offer Media Package(m3.com, CareNet.com, Nikkei Medical) Provide web service for lectures in local areas - “Mini Webinar” ※Professional Support, Studio Space, Integration with other services
2−2 Remote Detailing Service Offer Media Package (m3.com) Support, CRM, Integration with other services
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.
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