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© 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
© V-cube, Inc. All Rights Reserved.
FY2015 Q1 Financial Results
3
© V-cube, Inc. All Rights Reserved. 4
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)
© V-cube, Inc. All Rights Reserved. 5
<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)
© V-cube, Inc. All Rights Reserved. 6
<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.
© V-cube, Inc. All Rights Reserved. 7
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)
© V-cube, Inc. All Rights Reserved.
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)
© V-cube, Inc. All Rights Reserved. 9
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)
© V-cube, Inc. All Rights Reserved. 10
-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)
© V-cube, Inc. All Rights Reserved.
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.
© V-cube, Inc. All Rights Reserved.
FY2015 Consolidated Forecast
12
© V-cube, Inc. All Rights Reserved.
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)
© V-cube, Inc. All Rights Reserved. 14
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)
© V-cube, Inc. All Rights Reserved.
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)
© V-cube, Inc. All Rights Reserved.
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
© V-cube, Inc. All Rights Reserved. 17
-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)
© V-cube, Inc. All Rights Reserved.
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
© V-cube, Inc. All Rights Reserved.
Recent Highlights and Growth Strategy
19
© V-cube, Inc. All Rights Reserved.
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.
© V-cube, Inc. All Rights Reserved.
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.
© V-cube, Inc. All Rights Reserved.
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.
© V-cube, Inc. All Rights Reserved. 23
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
[Growth Strategy] Expand existing share and explore potential
Key Growth Strategy Products in 2015
© V-cube, Inc. All Rights Reserved.
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
© V-cube, Inc. All Rights Reserved. 26
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
OFFERING [Growth Strategy] Expand existing share and explore potential
© V-cube, Inc. All Rights Reserved.
Key growth strategic application for increasing # of Ports Free enterprise level text chat service. Investment to increase the use of visual communication platforms.
27
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
Official sticker of V-CUBE Gate
© V-cube, Inc. All Rights Reserved.
[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
—> More new contracts, less cancelations
© V-cube, Inc. All Rights Reserved.
[Growth Strategy] Expand existing share and explore potential
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
© V-cube, Inc. All Rights Reserved. 30
[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
make timely decisions.
<Initial use case>
・Disaster management
・Inspection of large facilities
・Railroad Inspection
・Surveillance of large facilities
© V-cube, Inc. All Rights Reserved.
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
© V-cube, Inc. All Rights Reserved.
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
© V-cube, Inc. All Rights Reserved.
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…
© V-cube, Inc. All Rights Reserved. 34
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
© V-cube, Inc. All Rights Reserved.
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. All Rights Reserved.
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.
© V-cube, Inc. All Rights Reserved.
Corporate Summary
37
© V-cube, Inc. All Rights Reserved. 38
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.
© V-cube, Inc. All Rights Reserved.
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
© V-cube, Inc. All Rights Reserved.
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)
© V-cube, Inc. All Rights Reserved.
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.
© V-cube, Inc. All Rights Reserved.
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
© V-cube, Inc. All Rights Reserved.
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, Inc. All Rights Reserved. 44
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.
© V-cube, Inc. All Rights Reserved.
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, Inc. All Rights Reserved.
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.
© V-cube, Inc. All Rights Reserved.
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”
© V-cube, Inc. All Rights Reserved. 49
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, Inc. All Rights Reserved. 50
V-cube offer 7 products to end-users on monthly subscription model
Business Summary - V-CUBE Service Lineup -
© V-cube, Inc. All Rights Reserved.
About the VC Market
51
© V-cube, Inc. All Rights Reserved.
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
© V-cube, Inc. All Rights Reserved. 53
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
© V-cube, Inc. All Rights Reserved.
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
© V-cube, Inc. All Rights Reserved.
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$
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(Reference) About Group Companies
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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.
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Unique solution by integrating hardware and software.
Pioneer VC, Corp. (PVC)
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Budget of 670 billion JPY FY2014~2017 to implement IT solutions in Education
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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)
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Budget of 670 billion JPY to implement IT solutions in Education
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(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
Subsidiary Acquisition of Pioneer Solutions
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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.
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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
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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
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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
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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
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The No.1 Visual Communication Platform in Asia
Thank you.
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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.