FY2015 Q1 Financial Results - · © V-cube, Inc. All Rights Reserved. FY2015 Q1 Financial Results...

© V-cube, Inc. All Rights Reserved.

FY2015 Q1 Financial Results Briefing Document (05/14/2015)

1

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.

（３６８１）

© V-cube, Inc. All Rights Reserved. 2

Good start of the year (especially for cloud business)General

Slight increase of port unit price, increase in No. of ports

Accelerated growth in China, North America and Singapore

Drones, Education ICT, Regional Revitalization, and Technologic Innovation

Global

KPI

Strategy

FY2015 Q1 Highlight


FY2015 Q1 Financial Results

3


FY2014.Q1 FY2015.Q1Consolidated Actual Actual YoY

Net Sales 752 1,248 165.9%

Cost of sales 291 501 172.4%

Gross Profit 461 746 161.8%

S.G. & A. expenses 429 710 165.5%Operating Income 32 36 112.3%

Ordinary Income 20 △14 - %

Net Income 14 △47 - %

FY2015 Q1 Consolidated Results　- P/L Summary -

（Million Yen）

(Foreign exchange loss 51 million yen)

(Total income taxes 19 million yen)(Total income taxes 12 million yen)(Non-controlling interests in income 12 million yen)

(Foreign exchange loss 9 million yen)


＜Consolidated Review＞

・ 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 -

(Singapore Dollars)


＜Service (Product) Enhancement＞

　Software Amortization, 35 million yen increase 　Increase cost of infrastructure, etc., 12 million yen

＜Operation Enhancement ( Long-term investment )

　Sales HR　154 million yen increase 　Policy Cost　19 million yen increase 　Enhancement of facility, office space, etc., 59 million yen increase 　

Proactive Investment Activities

※１ The numbers above are in comparison with same period in the previous year.


FY2014.Q1 FY2015.Q1

Sales Actual Actual YoY

Cloud 576 818 142.0%

On-premises 118 168 141.9%

Appliance - 180 -

Other 57 81 141.2%

Total 752 1,248 165.9%

YoY 1.4x growth in Cloud and On-premises sales. Steady Appliance sales growth.

FY2015 Q1 Consolidate Result - Net sales by Business Model -

※ Appliance sales come mainly from PVC’s smart board and discussion table solutions.

(Million Yen)


22,000

25,000

28,000

31,000

34,000

6,000

7,000

8,000

9,000

10,000

11,000

2013/Q1 2013/Q2 2013/Q3 2013/Q4 2014/Q1 2014/Q2 2014/Q3 2014/Q4 2015/Q1

Avg. Usage time No. of Ports33,191Ports

32,244Ports

30,958Ports

29,536Ports

27,558Ports

26,409Ports

25,440Ports25,124Ports

22,850Ports

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.

KPI - Growth Trend of Port Plan (JP-monthly)


FY2014.Q1 FY2015.Q1

Region Actual Actual YoY

Japan 648 1,035 159.7%

China 81 186 228.6%

Overseas （Excl. China） 22 26 117.0%

Total 752 1,248 165.9%

Contribution by PVC sales, 1.6x sales growth in Japan Overseas sales grew 2.3x in China, overseas sales share from 14%to 17%

FY2015 Q1 Consolidate Result - Net sales by Geographic Region -

※ Total overseas sales grew YoY 2x from 104 million yen to 212 million yen

(Million Yen)


-400 -200 0 200 400 600

36

-281

-210

495

32FY2014 Q1 Operating income (Actual)

Increase in Sales

Increase in Cost of sales

Increase of S.G. & A. expenses

FY2015 Q1 Operating income (Actual)

Increased Sales in all categories to cover increasing Cost of sales and S.G. & A. expenses, Operating income increase.

FY2015 Q1 Consolidated Result - Operating income Analysis (Comparison) -

Cloud　 +242 Appliance　 +180 On-premises +50 Others　 +23

HR, etc　 -154 Amortization of goodwill -22 Policy Cost -19 Others -86

Increased Purchasing　-119（Appliance -97） Software Amortization　-35 Others　-56

※Profit Increase Factor =「＋」、Decrease Factor =「ー」（Unit：Million Yen）


FY2015 Q1 Consolidated Result - Balance Sheet -

11

2014.12.31 2015.3.31 FluctuationCurrent Assets （cash & deposit, stock）

2,987 (1,286)

2,859 (901)

-128 (-384)

Non-current Assets （Software） (Goodwill))

3,270 (1,806) (833)

3,563 (1,907) (930)

293 (101) (97)

Total Assets 6,257 6,422 166Current Liabilities

(short and long term loans)1,350 (317)

1,485 (569)

134 (252)

Non-current Liabilities

506 608 101

Net Assets 4,400 4,328 -71

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.


FY2015 Consolidated Forecast

12


Seize opportunities to expand operation, invest to increase sales. 1H and annual forecast remain unchanged at this time

13

１

FY2014 FY2015(Forecast)

Consolidated 1H Annual 1H YoY Annual YoY

Net Sales 1,733 4,681 2,700 155.8% 6,400 136.7%

Operating Income 107 403 0 0% 502 124.5%

Ordinary Income 83 594 0 0% 500 84.0%

Net Income 31 261 0 0% 267 102.0%

FY2015 Consolidated Forecast

(Exchange gain 171 million yen)

(Million Yen)


FY2014 FY2015

Net Sales Actual Forecast YoY

Cloud 2,822 3,516 124.6%

On-premises 771 841 109.1%

Appliance 852 1,582 185.6%

Other 234 459 195.7%

Total 4,681 6,400 136.7%

Steady increase of Cloud sales. Target to extensively increase needs of electronic smart board for Appliance sales.

FY2015 Forecast　- (Reference) Net Sales by Business Model-

※１ The figures above is presented based on the scaling overseas sales.

(Million Yen)


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 -

※１ This forecast is using US$1 = JPY115.

(Million Yen)


0

200

400

600

800

1,000

1,200

1,040

0

200

400

600

800

1,000

1,200

2009 2010 2011 2012 2013 2014 2015(FC)

688

23951161413

16

(Million Yen)

• China SGM project. • Thai government unpredictability, increase in

pipeline in other countries • More than 90% non-Japanese companies

FY2015 Consolidated Results　- Overseas Sales -

Overseas sales pulls China’s success, extensive growth 1.5x


-1000 -300 400 1100 1800

502

-674

-946

1,718

4032014 Operating Income (Actual)

Increase in Sales

Increase in Cost of Sales

Increase of S.G.& A. expenses

2015 Operating Income (FC)

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) -

Appliance　 +730 Cloud　 +694 Others　 +225 On-premises +70

Increased purchasing　-561（Appliance -390） Software Amortization　-167 Others 　-217

HR, etc　-470　 Amortization of goodwill　-76 Policy Cost　-41 Others　-86

※Income Increase Factor =「＋」、Decrease Factor =「ー」（Unit：Million Yen）


0

1,067

2,133

3,200

4,267

5,333

6,400

2011 2012 2013 2014 2015(Forecast)

Cloud On-premises ApplianceOther

18

（Million Yen）

その他

1,6862,005

2,525

Ordinary Income (% = ordinary profitability)

4,681

0.7% 5.3% 10.5%12.7%

6,400

7.8%

Consolidated Sales

Future profitability goal is 30% Prioritize scalability in short term


Recent Highlights and Growth Strategy

19


FY2015 Q1 Highlights

20

2015.1 Invested in Rapyuta Robotics Co., Ltd. Begin business alliance with Robotics such as Drones

2015.2 Strategic partnership with Escrow Agent Japan, Inc.

2015.3 Nikkei BP 10th Cloud Ranking Best Service Award Nominee

Welcomed Mr. Kakutaro Kitashiro and Mr. Kenichi Nishimura as associate directors

Started demonstration tests for effective utilization of Drones

Acquired No.1 market share in Japanese Web conference market for the 8th consecutive year

Continued to successfully implement growth strategies. Started up Drones business etc, as a part of investment strategies.


Growth Strategy

21

Expand existing share and explore potential １

２

３ Development of B to B to C Platform Model

Asia based overseas expansion

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.


Growth Strategy

22

Expand existing share and explore potential １

＜Key Success Factors＞

・Increase market share through M&A, OEM

・Grow No. and unit price of ports

・Enhanced adaptability and flexibility through technologic

innovation—> More new contracts, less cancelations

・Industry-specific service offering, establish workable model

・Begin business alliance with Robotics such as Drones, etc.


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

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


Key Growth Strategy Products in 2015


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


Meeting with other offices

Sales meeting with video conference Training for all offices worldwide

Partner Seminars

“Web” sales to distant clients

Online Support

Maintenance & Support

Field work

All enterprise communication tools in one. Visual Communication Platform

Meeting Document Seminar Sales & Support Portal



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


Official sticker of V-CUBE Gate



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

—> More new contracts, less cancelations



Expand Industry-specific solution

29

Away from “Simply Web conference” to “UC Solution”

Maker

Finance

Rail

Public

Online Service Introduction

Distance communication via PC and smart devices.

Online Seminar

Internal Training

Remote sales and support

Interactive Lectures

Image, CAD design field

Education and distance learning solutionwith Electronic smart board

・・・

・・・

・・・

・・・

・・・Web Seminar, Telehealthcare, Online Counseling, At-home care, etc.,

Disaster Management Solution

General Use Case Specialized Solution

Finance-specialized Solution(Remote reception, product introduction, etc.,

Store Manager, SV Meeting, FC Hiring etc.,

Education

Logistics

Medical

Real estate

drone

Field Engineering

Inspection of Large facilities

Disaster Management



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

make timely decisions.

＜Initial use case＞

・Disaster management

・Inspection of large facilities

・Railroad Inspection

・Surveillance of large facilities

　


Growth Strategy

31

Asia based overseas expansion ２＜Key Success Factors＞

・Strengthen sales structures in every country

・Create new business model in China (Education, Nursing)

・Closing of quick increased pipeline in Malaysia

・Establish direct sales operation in Thailand, revive government projects

・Closing of quickly increased pipeline in Indonesia

・Formalization of operation in Taiwan, Korea and Vietnam


Growth Strategy

32

Development of B to B to C Platform Model３＜Key Success Factors＞・”Free Platform” to consumers, monetize with

contents and service set

・Collaborate with No.1 providers in each industry to provide service and contents

・Utilize long-tail that uses V-CUBE Market


Accelerate offering as a platform, thus rapidly expand business

33

[Growth Strategy] Development of B to B to C Platform Model

Joint business model with various industries starting from Education and pharmaceutical

B B C/BV-CUBE Contents Provider Consumer/End-user

to to

Correspondence Educators

Care providers

Training Agencyetc…


Business Model

“B2B2C” Business Model. Offering of paid lecture and seminar to V-CUBE Market users.

Participant

Paid Seminar

Cost to participate

Information Offering

- Commission - Monthly

- System - Support - Know-how

V-CUBEPartner

Market place for you to stream your lectures and seminars

[Growth Strategy] Development of B to B to C Platform Model

Utilize long-tail that uses V-CUBE Market


Growth Strategy

352014 2015 2016 2017

Accelerate Sales of Existing

V-CUBE Cloud Services

OEM OfferingOverseas DevelopmentPlatform Business

Key Points for Growth 　Accelerate upon stable business 　Expand based on OEM model 　Maximize overseas expansion 　Development through B to B to C Platform

Expansion of SaaS and From SaaS To Platform


V-cube, Inc.

36

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.


Corporate Summary

37


Mission Statement

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.


Company Profile

39

Cloud-based Visual Communications Service Provider

Company Name V-cube, Inc.

Established Oct. 16, 1998

Fiscal Year End December

Capital 1,878,800,800 Yen（As of Mar.31st, 2015）

Representative Naoaki Mashita President & CEO

Masaya Takada Deputy President

No. of Employees 318 (As of Mar.31st, 2015)

Global Entities Total of 10（2 in Japan and 8 Overseas）

Stock TSE Mothers:3681


Business management system（As of Mar.31st, 2015）

40

A global VC service company with great technical and sales strength

No. of Employees 318（excl. part-time）

Japan 251（VJP188＋PVC63）

Overseas 67（VGS14, VSG1, VCH20, VMY14, VID12, VUS6）

Sales and Marketing 143

Engineer 121

Administration 54 (Including directors, auditors, etc)

Office 13 （6 in Japan and 7 Overseas）

Datacenter 13（Japan, US (East Coast), US (West Coast), China,

Hong Kong, Singapore, Malaysia, Indonesia, India

Vietnam, Thailand, Philippine and UK）


Management Team

41

Naoaki MashitaPresident & CEO (Founder)

Masaya TakadaDeputy President

Shigeru MoritaExecutive Director CRO CCO

Yosuke KamezakiCTO

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.


Management Team

42

Hiroshi Komiyama　Adviser

Norio Murakami　Outside Director

Chairman of the Board of Trustees at Mitsubishi Res. Inst., Inc.Former President of Tokyo University

CEO at Murakami Norio Office, Inc.Former Executive Vice President at Google,Inc.Also Former CEO of Google Japan

Kakutaro KitashiroOutside Director

Kenichi Nishimura　Outside Director

The Japan Committee for Economic Development SecretaryFormer IBM Japan BOD ChairmanInternational Christian University, Chief Director

Mirait, Inc.　Advisor（Former BOD）Former NTT-Neomeit President

Strong corporate governance from influential outside directors


Historical Timeline of V-cube Group

43

(Sales Office)

(R&D Center)

(Sales Office)

（Sales Office）

(Global Operation Management)

(Sales Office)

(Sales Office)

（Now V-cube Global Services Pte. Ltd.）

2014Incorporation of M-cube, Inc, Subsidiary acquisition of Pioneer VC, Corp.

IPO on Mothers Tokyo Stock Exchange

Establishment of V-cube Internet Ltd.

Switch to “Inc.”, registration of V-cube trademark the following year

Incorporation of V-cube USA, Inc.

Incorporation of V-cube Broad Communication

Unification of V-cube and focus on Visual Communication

Incorporation of V-cube Networks, Inc.

Establishment of V-cube Malaysia Sdn. Bhd.

Changed service from nice to meet you to V-CUBE

Opened Office in Osaka

Establishment of PT. V-CUBE INDONESIA V-cube Singapore R&D Centre Pte. Ltd.

Subsidiary Acquisition of Brav International Limited/Tianjin Brav Ltd. Establishment of V-cube Global Operations Pte. Ltd./V-cube Singapore Pte. Ltd.


V-cube’s Mission

No.1 Visual Communication Platform in Asia

What is Visual Communication?

Communication Platform?

Asia’s No.1 Platform!!

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.


Business Summary -The Visual Communication Market-

45

・TV/Web Conference

・Web Seminar (Webinar)

・Online Sales (Web Consultation)

・Distant Learning (e-Learning)

・Tele-healthcare and Counseling

・Video Distribution

・Online Support

・and many more

・TV/Web Conference

・Web Seminar (Webinar)

・Online Sales (Web Consultation)

・Distant Learning (e-Learning)

・Tele-healthcare and Counseling

・Video Distribution

・Online Support

・and many more

The growing market of Visual Communication


V-cube Business Model

46

Cloud

On-premise

Customers

Enterprise

Financial

Gov’t

Education

Medical

Monthly Subscription

Sell Server and LicensesInitial Charge + Monthly Maintenance Fee

Service Offering

Resller OEM

Reseller OEM

Focused business development of cloud services to enterprise customers

Appliance

Offering of hardware, License, etc.,Initial Fee

Reseller

V-CUBE Group

55%

13%

25%※ Sales distribution ratio is based on the forecast 2015, “Others” is 7% of total revenue.


Other 15.8%A

4.2%Ca 4.1%J 4%F 9.2%

N 13.9%

C 17.0%

V-CUBE 31.4%

その他 12%J

6%F

7.9%

N14.4%

C25.0%

ブイキューブ34.3%

48

その他 23.8%

A 13.1%

Ca 12.8% Pioneer

16.2%

F 12.2%

N 12.8%

V 9.1%

Japan SaaS Market share (Total: 7 billion JPY）

Japan On-premise Market Share (Total: 3.28 billion JPY）

7 Years No.1 Market Share in JP

V-cube’s market share in Japan

Japan Domestic Web Conference Share (Total:10.28 billion JPY)

Fuji Chimera Research “New Software Market in 2013”


Business Summary　- V-CUBE’s Advantage -

Competitors require installation

Monthly updates and improved

features

Windows, Mac, smartphones and tablets

Flexibility in customization support

Local network infrastructure in more than 10 countries

Able to keep company

security setting


V-cube offer 7 products to end-users on monthly subscription model

Business Summary　- V-CUBE Service Lineup -


About the VC Market

51


million$

Market Potential

Enterprise Organization Chart for Japan

Enterprise No. NotesLarge 12,000

Medium 536,000 not including SME and Small companies

Small 3,665,000 Manufacture: below 20 employee Service: below 5 employees

Total 4,213,000Ministry of Internal affairs and communication “2012 Economics Census Report”

Scalable to new customers

Scalable to whole organization

Web Conference

Source: Seed Planning, “2013 Market trend for audio and video communication”

The Web Conference market has great potential in the futureMarket Forecast for Visual Communication


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

TV ConferenceTeleconference

Web Conference

Free Video Chat

Enterprise Size

Large

Individual

SME


Market Status　- Increase of the availability of smart devices and popularity of “telework” -

54

Rapid growth in the usage of smart devices Increased necessity due to advocacy of “telework”

Smart Device Market for Enterprise

0

1500

3000

4500

6000

2011 Estimate 2016 Forecast

Smart Phones Tablets（Thousand Unit）

Source: Fuji Chimera Research Institute, Inc. “Overview of the market of smart devices for enterprise

85.6%

2.9%11.5%

In UseDebatingNot Interested

Telework Percentage 2012

17.7%

0.1%1.2%

55.8%

25.2%

Big EffectSome EffectNo EffectMinor EffectUndetermined

Effectiveness of Telework

Source: Ministry of Internal affairs, 2012 Communication Trend Report


Market Status　- About Asia Market -

55Report and forecast of Cloud-based Visual Communication in ASEAN

Asia-Pacific Hosted Conferencing Service Market 2013 by Frost&Sullivan

Rapid growth of visual communication market in Asia, led by ASEAN and China

0

100

200

300

400

500

600

2011 2013 2015 2017

Korea 2.3%

Oceania 24.0%

ASEAN 6.8%China 11.8%

Japan 55.0%

Cloud-based Visual Communication Market Chart 2012

Million$


(Reference) About Group Companies

56


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.


Unique solution by integrating hardware and software.

Pioneer VC, Corp. (PVC)


Budget of 670 billion JPY FY2014~2017 to implement IT solutions in Education

59

Target Standard One PC for an average of 3.6 studentsElectronic smart board and projects as basic education equipment

100% coverage of high-speed internet and Wifi

Preparation

PC Purchase of 146 million PCs and leasing exiting 191 million units

Smart board Purchase of 400,000 new units and renewal of existing 10,000 units

Projectors Purchasing 330,000 units and renewal of existing 10,000 units

Wifi equipment 380,000 unequipped classrooms

（2014-2017）

20,000 units were sold to schools nationwide, No.1 in Japan.

Pioneer VC, Corp. (PVC)


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)”


Subsidiary Acquisition of Pioneer Solutions


Company Name M-cube, Inc.Established March 3rd, 2014Capital Capital 25M yen, Capital Reserve 25M yen (V-cube: 49% )Structure Koji Arai　　 CEO（V-cube）

Satoshi Yokoi　 Director（M3）Shotaro Uematsu　Director（M3）Naoki Oda　　 Director（V-cube）Hiroshi Oba　　　 Director（M3）Eiji Hirakawa　　 Auditor

＝

Looks to become the defacto service in the medical healthcare industry. Web lecture, distance medicare etc.,

M-cube, Inc.


1-1　Offer Web conference service to doctors

1-2　Offer Webinar service to doctors (education, clinical purposes)

1-3　Professional messenger application for medical staff

1-4　E-consultation platform business

　　 Online counseling service for Psychology-related services

Ultimately allowing industry-wide End to End connection

Communication Platform Business１

Offer VC platform for Medicine and Healthcare Industry


１

メーカーや院外での利用院内での利用（D2D、D2C）コンテンツとして医療情報との連携

医療インフラとしての利用

院外研修

製薬企業とのコミュニケーション

症例検討各種勉強会学会

各種部会

院内研修、教育面談・カウンセリング

外出先（ BYOD）

出張先

院外からの利用

電子カルテ医療画像システム医療機器etc...

遠隔医療在宅医療医学教育

各種医療連携

拠点間会議

症例検討・治療計画臨床現場での活用

テレワーク

Communication Platform Business

Offer VC platform for Medicine and Healthcare Industry

Outside Usage

Training

Communication with Pharmaceutical

Disease Analysis Discussion Group

Study Group Section Meeting

Internal Use (D2D, D2C)

Internal Training, Education Consultation・Counseling

Branch Meeting

Investigation・Planning Clinical Site Use

Outside Use

Business Traveling

Customer Visit Telework

Integrated Contents

EMR

Medical image Processing

Medical Equipment

Infrastructure for Medical Use

Industry-wide Coverage

Tele-healthcare

At-home Treatment

Medical Training


Digital Marketing Industry２

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

2−3　MR live training service for m3 panel

http://m3.com

http://CareNet.com

http://m3.com


Digital Marketing Industry２

External Use (Revenue↑)　　　/　　Internal Use (Cost↓)Doctor/Pharmacist

Co-branch Meeting

Sales Meeting

Information Sharing

Training for MR Recruiting

Online Conference

Video Chat Platform

Webinar Platform

Round-table, Research society, etc

Remote Detailing

Promotional mass marketing

Owned Media

3rd Media

Doctor

Pharmacist

SFA / CRM

No Media

PDC

Provide Marketing Service to Pharmaceutical・Equipment Manufacturers


The No.1 Visual Communication Platform in Asia

Thank you.


About This Document (Disclaimer)

67

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.

FY2015 Q1 Financial Results - · © V-cube, Inc. All Rights Reserved. FY2015 Q1 Financial Results...

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