ブイキューブ（3681） – FY2022.Q1 Financial Results Briefing Document

FY22 Q1Financial Results Briefing DocumentV-cube, Inc.株式会社ブイキューブApr 28, 2022Copyright © V-cube, Inc. All Rights Reserved.Index1. Highlight2. Business Environment3. FY22 Q1 Results4. SDGs・ESG5. AppendixCopyright © V-cube, Inc. All Rights Reserved.2Financial HighlightsDespite the postponement of hybrid events due to the Omicron and the impact of a significant decrease in small-scale events from the second half of last year, expansion of medium- and large-scale events and high-value-added events in various industries (unit price increase), increased SDK due to business remoting, and increased installation of Telecube contributed to solid performance of Q1.FY22 Q1 Consolidated Financial Results・TV commercial in January to accelerate growthof Telecube. 230 million yen in 1QNet SalesMarginal ProfitEBITDAOperating Profit3.612.220.680.39 （billion Yen)（8％increase） （3％decrease） （36％decrease） （52％decrease）※Sales minus variable costs※Decrease due to one-time CM expensesFigures in ( ) : Percentage change from the same period last yearEnterprise DX (EP)Event DX (EV)Third Place DX (TP)SDK Usage fee (recurring billing for last 12 months)Event unit price790 million yen（54% increase）680 thousand yen（33% increase）No. of Events2,142times（29% decrease）Quarterlyinstalled units2,760units（187% increase）Cumulativeinstalled units10,513units（248% increase）Copyright © V-cube, Inc. All Rights Reserved.Figures in ( ) : Percentage change from the same period last year3Telecube (Third Place DX Business) TV commercials to expand awareness greatlyCopyright © V-cube, Inc. All Rights Reserved.4Highlights of each segment FY22 Q1Event DX Business・Despite solid expansion in non-pharma industries, sales and profits declined due to a significant decrease in small-scale eventsin the pharma industry, which grew in Q1 last year. Continue to further improve cost control and further expand into otherindustries and medium / large, high-value-added events.・Metaverse Event Service is launched to expand the high-value-added line of events. New services such as “Green Meter”, which visualizes the reduction of environmental impact through online event, are also launched.Third Place DX Businessexpenses of 230 million yen.Enterprise DX Businessdue to the sales mix changes. ・Sales increased significantly due to further expansion of office (corporate) demand. Profit decreased due to the commercial・The installed units reached 2,760 on a quarterly basis, the largest ever, including both corporate and public use, bringing the cumulative total to 10,513 units. Although the subscription model remained steady, the units in operation declined slightly compared to the end of the last year due to the purchase after expiration of usage period.・While general-purpose web decreased Y to Y, SDK and emergency countermeasures increased. Sales and profit decreased ・SDK’s STOCK (recurring billing for last 12 months) grew steadily by 54% Y to Y.FY22 ForecastEvent DX and Third Place DX continue to drive strong growth, targeting sales of 13.9 billion yen (+21%) and EBITDA of 3.4 billion yen (+27%)Copyright © V-cube, Inc. All Rights Reserved.5Executive Appointments（March,29 2022）Naoaki MashitaMasaya TakadaJun MizutaniRepresentative DirectorChairman and Group CEORepresentative Director President and CEO Director Vice President and COO Representative DirectorPresident and CEORepresentative DirectorVice President and COOSenior Managing Director and CROEntire group management responsibilityJune 2021Acquisition of Xyvid, Inc. to pursue synergies and further promote group managementManagement responsibility in the domestic domainResponsibility for execution of operations based on management policies in the domesticCopyright © V-cube, Inc. All Rights Reserved.6INDEX1. Highlight2. Business Environment3. FY22 Q1 Results4. SDGs・ESG5. AppendixCopyright © V-cube, Inc. All Rights Reserved.7Net Sales Forecasts by SegmentContinued strong growth despite market trend changes in Event DX. Telecube continues to be in high demand and is expanding. General-purpose web plans to reduce revenue due to withdrawal from product sales and on-premise sales, to strengthen sales of related SaaS.【Billions of yen】Sales 13.9 billion yenEBITDA 3.4 billion yenOP 2.0 billion yenServiceSegment14.012.010.08.06.04.02.00.0Sales 11.5 billion yenEBITDA 2.7 billion yen OP 1.4 billion yenSales 8.3 billion yenEBITDA 2.0 billion yenOP 1.0 billion yen1.0 2.6 0.8 0.5 0.4 3.0 (0.9)2.2 4.7 0.7 0.4 0.7 2.8 (0.7)3.2 6.2 0.5 0.6 1.0 2.4 (0.3)TelecubeThird place DXEvent DXEnterprise DXEventLMSEmergency MeasuresSDKGeneral Purpose WebFigures in ( ) are Sales of Goods and On-premiseFY20(Actual)Copyright © V-cube, Inc. All Rights Reserved.FY21(Actual)FY22(Forecast)8Direction of FY22 for each segment and serviceSince the impact of the COVID 19 pandemic and changes after the pandemic will vary depending on the business, we will describe our opinions on each of them.New SegmentServicesComment on the third year of the mid-term management plan, FY22 planThird place DXEvent DXTelecubeEventWith the change in work styles after the COVID 19, it has entered a phase of full-scale diffusion.Further expansion of corporate and public use to 10,000 units per year. TV commercials in Q1.Work to further expand applications and revenue sources through the use of technology.Minimize the number of small events in the pharma industry by conducting them in-house.Medium / large scale, high value-added services are expected to grow steadily in various industries such as the pharma industry, human resources, finance, B2B marketing, and AGM. Enterprise DXLMSSDKEmergency CountermeasureGeneral Purpose WebSales to corporates will grow steadily due to the recovery of customers damaged by COVID 19.Sales to schools will decrease by about 150 million yen due to changes in government policy.(both sales and profit)FY21 was significantly damaged by the non-operating environment in FY20, but is expected to return to growth in FY22 due to the resumption of operations and heightened awareness of disaster countermeasures.FY21 was affected by delays in large-scale projects, but is expected to grow on the back of the start of these projects and strong demand for the use of SDKs (needs to remote businesses).Sales are expected to decline by 400 million yen due to closure from On-premise general-purpose web and closure/reduction in unprofitable product sales.Total sales of SaaS V-CUBE Meeting and Zoom are expected to remain flat.Copyright © V-cube, Inc. All Rights Reserved.9Corporate Mission StatementProvide Even Opportunity to EverybodyWe want to create a world where everyone can get even opportunity in any circumstances.We believe that we can realize more affluent societyby reducing the time and distance of face-to-face communication.The world is facing social issues such as extreme concentration of population and industry in city area, declining birthrate and aging society, long working hours, educational and healthcare gaps, etc.We aim to provide even opportunity to everybodyby solving these social issues with our Visual Communication solutions.Copyright © V-cube, Inc. All Rights Reserved.10Realizing a Society to Provide Even Opportunity to Everybody through Communication DX (FY20-22 Mid-Term Management Plan-Basic Policy)Beyond Telework～ In a towards the realization of a society to provide Even opportunity to everybody, we need to make remote communication, not only in the field of telework, but also in various other fields, take root as a culture in Japan.～1.In order to “realize a society to provide Even opportunity to everybody”, we will establish telework and improve productivity and quality of life through remote communication2. Achieve sustainable growth for the Group as a whole by creating new business domains3.Improve performance and return profits to shareholders in order to maximize corporate valueCopyright © V-cube, Inc. All Rights Reserved.11Overall of the Business Segment1. Event DX Business• Remoting events in various fields• Product provision, operational design, direction operation, log analysis, and other operational support2. Third Place DX Business• Providing Telecube to companies and public use• Higher value-added Telecube and development and deployment of third-place management and operation systemsPharmaceutical Web SeminarEmployment/recruitment briefingsVirtual shareholders meetingFor companiesFor public use3. Enterprise DX Business••Provision of remote communication products for internal and external companiesDevelopment, provision and operational support of industry/application-specific remote communication products using SDK and hardwareInternal and external communicationCustomer business/service DXKnowledge Share/LMSTelecube ConnectV-CUBE meetingRemoteEducationHealthcareRemoteReal estateFinancial consultationFan Service/Live entertainmentdistributionSNS/ matchingCommunityCopyright © V-cube, Inc. All Rights Reserved.12Estimated “Domestic” Market Size of Growth SegmentsEvent DX marketThird-place DX marketMarket Size (SAM)Approx. 106.8 billion yen※SaaS usage fees and support costs onlyOur target share (SOM)Approx. 35.3billion yenMarket Size (TAM)Approx. 105.6 billion yen※Excluding contents and advertisingSubscription・Royalty (SAM)Approx. 25.0 billion yenOur target share(SOM)Approx. 17.5billion yenCopyright © V-cube, Inc. All Rights Reserved.Our estimates based on “2016 Economic Census and Activity Survey” by Statistics Bureau, Ministry of Internal Affairs and Communications※TAM：Total Addressable MarketSAM：Serviceable Available MarketSOM：Serviceable Obtainable Market13INDEX1. Highlight2. Business Environment3. FY22 Q1 Results4. SDGs・ESG5. AppendixCopyright © V-cube, Inc. All Rights Reserved.14FY22 Q1 Results Consolidated P/LSales increased due to the consolidation of Xyvid as a subsidiary and increased sales of Telecube, despite a significant decrease in small-scale events in the pharma industry, which grew significantly in Q1 last year.Operating profit decreased due to a significant decrease in small-scale events, profit margin difference caused by the sales mixchanges and 230 million yen in Telecube commercial expenses. Further improvement in cost control and further expansion of other industries and medium / large scale, high-value-added events.(million yen)FY21.Q1FY22.Q1FY22.1st Half ForecastFY22 Full Year ForecastNet SalesEBITDAOperating ProfitOrdinary ProfitProfit attributable to owners of parent3,3561,0648207987873,6086773903703006,7001,50085080070013,9003,3802,0001,9001,500※ EBITDA: Operating profit + Depreciation & Amortization + Gains/losses on non-recurring or discontinued operations within operating revenue and expenses(M&A-related expenses, gains/losses from exited business, etc.) Copyright © V-cube, Inc. All Rights Reserved.15FY22 Q1 Results Consolidated B/SThe increase in current liabilities is due to the reversal of year-end measures in short-term debt and the transfer of a portion of the borrowings for the Xyvid acquisition from long-term debt to current portion of long-term debt.Goodwill slightly increased due to yen depreciation (U.S. subsidiary Xyvid, Singapore subsidiary Wizlearn)(million yen)FY21 Dec 31FY22 Mar 31Current assets(Cash and deposits)Fixed assets(Tangible assets)(Software)(Goodwill)Total assetsCurrent liabilities(Short-term borrowings, current portion of long-term debt)Long-term liabilities(Long-term loans payable)Net assets4,222(1,823)11,036(1,694)(2,366)(3,759)15,2594,578(2,155)5,579(4,828)5,1005,448(2,480)11,577(1,672)(2,658)(3,903)17,0267,253(4,885)4,136(3,459)5,636Change+1,226(+656)+540(△21)(+291)(+144)+1,767+2,674(+2,729)△1,443(△1,368)+536Copyright © V-cube, Inc. All Rights Reserved.16Shareholder ReturnsProvide stable and continuous shareholder returns with taking into account financial condition.Dividend PolicyDividend(Per Share)Share buybackTargeting a 20% dividend payout ratio based on NOPLAT and aiming for 30% in the future※NOPLAT=Net Operating Profit Less Adjusted TaxesFY19FY20FY21FY22 (Forecast)1 yen4 yen8 yen8 yen177,700 shares(Approx. 100 million yen)112,500 shares(Approx. 300 million yen)176,200 shares(Approx. 400 million yen)Calculate the amountbased on NOPLATHolding about 1.9% of outstanding sharesCopyright © V-cube, Inc. All Rights Reserved.17Segment Overviewdifference caused by sales mix changes.EP : Decrease in web conferencing and growth in SDK and emergency countermeasures. Profit decreased due to profit margin EV : Sales and profit decreased due to a decline in the pharmaceutical market, despite steady growth in other industries.Further cost improvement and shift to medium / large scale projects.TP: Sales increased significantly due to an increase in corporate Telecube. Profit decreased due to the impact of 230 million yen in commercial expenses only in Q1.(million yen)FY21FY22Q1 ActualQ1 ActualEnterprise DX BusinessSegment profitEvent DX BusinessSegment profitThird Place DX BusinessSegment profitCorporate expensesTotalOperating profitNet sales(Ratio)Net sales(Ratio)Net sales(Ratio)Net sales(Ratio)1,297326(25.2%)1,536479(31.2%)522164(31.5%)△1503,356820( 24.5%)1,245257(20.7%)1,453225(15.5%)90972(7.9%)△1653,608390( 10.8%)FY221st Half Forecast2,190361(16.5%)2,975568(19.1%)1,534294(19.1%)△3736,700850(12.7%)FY22Full year Forecast4,550670(14.7%)6,1701,180(19.1%)3,180890(28.0%)△74013,9002,000(14.4%)FY21FY22Q1 ActualQ1 ActualEvent DX business excluding amortization of Xyvid goodwill 1,536479(31.2%)1,453278(19.1%)Copyright © V-cube, Inc. All Rights Reserved.18Event DX Business OverviewMany hybrid events postponed due to Omicron infection spread. Xyvid with many hybrids and some Japanese events affected. Recovery trend as infection settles.FY21FY22FY22FY22(million yen)Q1 ActualQ1 ActualNet SalesSegment Profit（Ratio)(Reference) Profit excluding Xyvid goodwill amortization and acquisition costs1,536479(31.2%)479(31.2%)1,453225(15.5%)278(19.1%)1st Half Forecast2,975568(19.1%)Full Year Forecast6,1701,180(19.1%)SaaSDX support through technologyProducts/ServicesExpansion and arrangement of lineupValue Delivery Model for Event DX BusinessServiceDX support through professional servicesEstablishment of a model specializing in the industry×Strengthen and promotecustomer successWeb Seminars in pharmaceutical IndustryRecruitment sessionVirtual AGM of ShareholdersExhibitions and business meetingThrough ongoing operational support Establishment of a remote utilization culture and long-term relationshipsCopyright © V-cube, Inc. All Rights Reserved.19Event DX Business KPIUnit price increase and number of events decrease planned, assuming a decrease in small events for the pharma industry.In Q1, acquired projects for medium / large scale events and high-value-added events as planned.Unit price to increase due to virtual AGM to be concentrated in June and growth of Xyvid.FY21FY22Q1(Jan-Mar)Q1 Cumulative(Jan-Dec)Q1(Jan-Mar)5103,0046107,7856802,142Full year Forecast(Jan-Dec)8007,681Average unit price（thousand yen）Number of events （times）Small scale events• Pharma industry (regional)Medium / large scale events • Pharma industry (nationwide), human resources, financial, IR briefings, sales promotionhigh-value-added events • EventIn, Touchcast, Virtual AGM, XyvidCopyright © V-cube, Inc. All Rights Reserved.20Event DX Business Changes in Events by ScaleSmall event sales in the pharma industry dropped by a third compared to the same period last year.Medium / large and high value-added events are growing compared to last year and continue to grow strongly.Quarterly sales and unit price since FY20（Sales: Million Yen）（Unit price : Thousand Yen）1,6001,4001,2001,00080060040020006565470305 8120/1Q18349 920/2Q115541,004 2585042478 113654320582166749316679277974 564 615 808 57551850 629800700600500400300200100020/3Q20/4Q21/1Q21/2Q21/3Q21/4Q22/1Q1869999203High value addedMedium/largeSmallUnit priceCopyright © V-cube, Inc. All Rights Reserved.21Event DX Business Virtual AGM of Shareholders (High value-added events)Development of software functions in accordance with laws and regulations is required. Mission Critical and Difficult Virtual AGM.The number of listed companies is approx. 3,800, and deliver 30 companies per day in June, the period of concentration of AGM. Support for virtual-only AGM, which became possible due to a change in the law in June.Provided for AGM held on Sep 28 2021In a listed company・Event DX needs・Telecube needs・Other communication DX needsListed companiesApprox. 3,800FY21 Total158Copyright © V-cube, Inc. All Rights Reserved.22Event DX Business Xyvid, Inc. (High value-added events)Acquired Xyvid, an Event DX company in the U.S in June 2021. (100% subsidiary) Earn-out based on performance in each year of FY21 and FY22. (paid in FY21 due to target achievement)Rapidly growing with the same SaaS+Service model (Xyvid Pro + distribution support in the U.S. and developed countries with other group companies) Corporate ProfileWeb Broadcasting Hybrid / Virtual MeetingsSaaS CPENet Sales trendEstablishment2011LocationPennsylvania, USABusinessEvent DX business（Providing SaaS and services for online events）RepresentativeDavid Kovalcik – Founder & PresidentNaoaki Mashita – ChairmanNo. of employees33（as of March 31, 2022）FY21 ResultsFY22 ForecastsNet salesOperating profitNo. of events held7.1M USD3.1M USD883 times11.0 M USD4.0 M USD1,140 times（Millions of USD）45.227.517.211.01.51.72.67.25.4FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25ResultsForecasts※included in consolidated financial result from June 2021.CPE：Continuing Professional EducationProvided to accountants, doctors, and other industries that collect credits for training.Copyright © V-cube, Inc. All Rights Reserved.23Event DX Business Approaches to the Metaverse DomainLaunched “Metaverse Event Service” as the first step in providing communication services on Metaverse.Launched “EventIn Workplace”, a virtual office platform on Feb 1st 2022.Metaverse Event Service・Create a metaverse of events for all types of business (games, music, sports, office/urban development, etc.)・Promoting the use of the metaverse in business domainsVirtual Office Platform“EventIn Workplace”・Revitalize internal communication, which tends to be diluted by the spread of telework.・Virtual office with chatting space, open space for collaborative work, and meeting rooms→ Web conferencing and text chatting allow employees to communicate with each other in a variety of waysCopyright © V-cube, Inc. All Rights Reserved.24Event DX Business Contribute to a decarbonized society/ESG through the business“Green Meter” to visualize the CO2 reduction rate by moving events online“Green Meter”・Developed a service for events that visualizes the CO2 reduction effects of conducting web conferences, which was provided more than 10 years ago.・While environmental impact reduction is one of the benefits of bringing events online, it was difficult to visualize the effects・Visualization of CO2 reductions facilitates onlineCopyright © V-cube, Inc. All Rights Reserved.25Third Place DX Business OverviewThe installed units of Telecube for the quarter alone was the largest ever. Number of subscription in operation decreased slightly with 43 units purchased after use. The cumulative installed units reached 10,513 and continue to expand the installations.Planned Cumulative InstalledFY21FY22FY22FY22PublicCorporate(Subscription)Corporate(Sellout)(million yen)Net SalesSegment Profit（Ratio)Profit excluding mass advertising expenses (Ratio)Q1 Actual Q1 Actual522164(31.5%)164(31.5%)90972(7.9%)301(33.1%)1st Half Forecast1,534294(19.1%)Full Year Forecast3,180890(28.0%)Installed Units (Quarterly)Installed Units (Cumulative)FY19ActualFY20ActualFY21ActualFY22Forecast3,0002,5002,0001,5001,0005000(500)CorporateCorp.SubscriptionPublic53 69 117 106 197 533 23181563945449274 259240667 618252419/1Q 19/2Q 19/3Q 19/4Q 20/1Q 20/2Q 20/3Q 20/4Q 21/1Q 21/2Q 21/3Q 21/4Q 22/1Q1,750 1,796 494288251659 16831,189 24151150963 69997952635-132,760 13810,000CorporateCorp.SubscriptionPublic10,513 5813227,753 4433355,957 3553104,207 3062689,610 6,975 3,018 2822532,483 5,292 3,633 92 161 278 384 2,055 658 855 1,388 21315490113559 715 1,164 1,688 2791527219/1Q 19/2Q 19/3Q 19/4Q 20/1Q 20/2Q 20/3Q 20/4Q 21/1Q 21/2Q 21/3Q 21/4Q 22/1QCopyright © V-cube, Inc. All Rights Reserved.2614,00012,00010,0008,0006,0004,0002,00008,0006,0004,0002,0000Third Place DX Business KPI (Telecube) / Telecube Flat-rate Plan for Public SpacesSteady growth at a pace exceeding the initial plan coping with bottlenecks in the production of materials due to increased demand.Telecube for the public use increased its utilization rate while expanding the number of units installed. Launched a flat-rate plan for corporate customers.Q1 Installed units (Jan-Mar) 2,760 units (Approx. 2.9 times more than last year’s 963 units)Half of the 6,000 units of installation plan in FY22 has been installed in Q1.Cumulative installed units10,513unitsSales volume + the subscription number of units in operation.Usage rate at end of period for public 100% increase (Y to Y Change)“Telecube Corporate Flat-rate Plan for Public Spaces”・Companies contract for “Telecube” installed in public spaces, and their employees can use it for a fixed monthly fee(From 30,000 yen/month)・Contributing to create an environment where both companies and businesspeople can work comfortably via teleworkShin-Marunouchi Building Web Conference CenterCopyright © V-cube, Inc. All Rights Reserved.27“Telecube” installed in public spacesThird Place DX Business Metaverse Initiatives / Collaboration with Other IndustriesLaunched “Metacube”, a private VR space for a Phygital Reality Metaverse experienceProvided online purchase service using “Telecube” in collaboration with “Brandear”Private VR space “Metacube”・Experience a realistic VR・Metaverse space by projecting video content on the walls of the Telecube.・Creating “Phygital(*) Reality” experiences that provide new value to business scenes and consumers.* A term coined by combining the words “physical” and “digital”Online Purchase Service by Telecube and Brandear・Free access to Brandear Bell (online purchase service) within Telecube.・Enables use not only at home, but also during travel, on the way home, and other spare time.・Use of Telecube with excellent sound insulation and privacy protection leads to improved customer peace of mind and convenience.Copyright © V-cube, Inc. All Rights Reserved.28Enterprise DX Business OverviewSupporting customers’ internal and external communications and remote operationsWhile general-purpose web conferencing is expected to remain flat, aim to grow each service such as SDK, which is expanding rapidly.FY21FY22FY22FY22V-CUBE meeting(million yen)Net SalesSegment Profit（Ratio)Q1 ActualQ1 Actual1,297326(25.2%)1,245257(20.7%)1st Half Forecast2,190361Full Year Forecast4,550670(16.5%)(14.7%)Enterprise DX Sales trend（Millions of yen）1819810582119010312078021010734647199189169726168911688661745418471519040180660130190210540120180410540LMSEmergencyMeasuresSDKGeneral-purpose web,etc.2 0 / 1 Q2 0 / 2 Q2 0 / 3 Q2 0 / 4 Q2 1 / 1 Q2 1 / 2 Q2 1 / 3 Q2 1 / 4 Q2 2 / 1 QCopyright © V-cube, Inc. All Rights Reserved.29Enterprise DX Business V-CUBE Video SDK (Software Development Kit)Incorporating video communication functionality into existing services to support remote serviceOur sales increase along with the growth of our clients’ businessesRecurring fee billing / Growth rate(last 12 months)790 million yen / 54% increaseNumber of partners175 companies（170 at the beginning of term）Sales trends for each quarter (million yen)SPOT（developmet・customize)STOCK（recurring fee billing）STOCK（maintenance, etc.）149 4 35 48 13 35 4 155 134 105 116 183 182 206 214 16 20 21 34 34 19/1Q 19/2Q 19/3Q 19/4Q 20/1Q 20/2Q 20/3Q 20/4Q 21/1Q 21/2Q 21/3Q 21/4Q 22/1QCopyright © V-cube, Inc. All Rights Reserved.30Enterprise DX Business DX example of Customer ServiceRealizing DX for business and face-to-face services through V-CUBE services in a wide variety of industries and applicationsRemote educationOnline English conversationBest Teacher, Inc.Improved usability for students with simplified connectionsStart your online English conversation lesson with one clickLifestyleOnline fitnessSOELU, Inc.Yoga and fitness lessons delivered online via videoEnables students to take lessons “from home” while protecting their privacyRemote medicineOnline medical examinationMYTHOS CO.,LTD.Developed an online medication guidance application with “Agora,” an easy-to-implement “video call” solution.EntertainmentLive Event StreamingTHECOO, Inc.“Fanicon”, a Fan Community App for InfluencersVideo talk function is realized by adopting the SDK “Agora”Copyright © V-cube, Inc. All Rights Reserved.31Enterprise DX Business Emergency Countermeasure SolutionEmergency measures in FY21 were sluggish due to difficulties in sales visits to local areas in the COVID 19 pandemic.In FY22, aiming to expand again as sales gradually become possible and awareness of disaster preparedness rises.All information gathered at the headquarters is consolidated on the screen of an electronic table, organized and overviewed.Communication system that enables real-time information sharing with remote locationsSmart Glasses (remote assistance for on-site work)Real-time confirmation of on-site video images, instructions and support via web conferencingNTT East Copyright © V-cube, Inc. All Rights Reserved.Hiroshima Prefectural Office32Index1. Highlight2. Business Environment3. FY22 Q1 Results4. SDGs・ESG5. AppendixCopyright © V-cube, Inc. All Rights Reserved.33Initiatives for ESG Issues Our ESG websitehttps://www.vcube.com/company/esgOur InitiativesContribution to SocietySDGsE(Environment)In order to contribute to the realization of a carbon-free society, we aim to convert all electricity consumed in our business activities to 100% renewable energy by 2025.• Develop and provide services to remotely communicate internally and externally• Supporting the Introduction and Establishment of a New Communication Culture• To reduce the use of CO2 and other fuels generated by physical movements• Resource conservation by reducing opportunities to use physical goodsS(Social)We will work to resolve social issues and aim to realize a society in which all people can gain equal opportunities.[Examples of Solutions]• Telework tool• Online events• Virtual AGM of shareholders• Remote health care• To solve societal issues✔ Equal opportunity✔ Improvement of digital divide✔ Regional revitalization⇒ “Provide Even Opportunity to Everybody”G(Governance)Recognizing the importance of corporate ethics and improving the soundness of management, we will promote management with an awareness of increasing corporate value.Copyright © V-cube, Inc. All Rights Reserved.• Ratio of Outside Directors :38%(3 out of 8)• Diversity of Directors• Strengthening governance and compliance as a company that solves social issues(In addition to founding members, experienced corporate management and mayors, women, and experts)•Integration of ideas and know-how to solve social issues through diverse human resources34Initiatives for ESG Issues Sustainability Management for a Decarbonized SocietyWe aim to convert 100% of the electricity consumed for our business activities to renewable energy by 2025.Copyright © V-cube, Inc. All Rights Reserved.35Materiality of V-cubeGoverning to support corporate activitiesCopyright © V-cube, Inc. All Rights Reserved.36Materiality of V-cube①Advocating for the global environment sustainabilityWe will promote the use of renewable energy to realize an environmentally friendly societyand the energy conservation through the provision of ICT technology that enables non-mobile communication.Main initiatives• Sustainability Management for a Decarbonized Society• By 2025, convert 100% of electricity used in business activities to renewable energyCopyright © V-cube, Inc. All Rights Reserved.37Materiality of V-cube②Realization an even society through liberating the way we workIn order to create an environment where everyone can work actively and achieve self-fulfillment regardless of location, we are working to realize equality of opportunity by reforming work styles through visual communication technology.Main examples• Providing communication tools that enable employees to work from anywhere•Increase employee engagement by realizing new work style• Bringing events online and hybridV-CUBE MTG & Zoom and other general-purpose web conferencingEngagement score, postpartum return rateNumber of events held 20,000 times per year in 2025Cumulative number of Telecube installed • Solving the problem of “no place” by Telecube40,000 units by 2025Copyright © V-cube, Inc. All Rights Reserved.38Materiality of V-cube③Leaving no one behind with digitalizationWe will contribute to the realization of a society where everyone can communicate equally and without inconvenience through visual communication technology, regardless of age, gender, nationality, etc.Main examples• Digital technology that is safe and secure and can be used by anyone through Service• Correction of regional disparities and equal opportunities using remote technologies• Deregulation and diffusion of telemedicine and distance education• Digitalization of disaster and emergency measures• Virtualization of AGM of shareholdersCopyright © V-cube, Inc. All Rights Reserved.39Materiality of V-cube④Remotizing all kinds of IndustriesWe will provide unprecedented new video communication technology and work to create new businesses and realize DX through collaboration with local governments and companies through ICT technology innovation.Main examples• Remoting Industries by SDK• Vertical Solutions• Maintenance of social infrastructure (Senshin Robotics)Copyright © V-cube, Inc. All Rights Reserved.40Materiality of V-cube⑤Governing to support corporate activitiesWe will improve the efficiency of management and maintain soundness by establishing a high-level governance system, ensuring transparency, planning and executing strategies for sustainable growth, and enhancing appropriate supervision of these strategies.Main examples• Enhancing corporate governance and ensuring its effectiveness•Improving employee happiness and diversity and inclusion• Ensuring cyber securityCopyright © V-cube, Inc. All Rights Reserved.41Index1. Highlight2. Business Environment3. FY22 Q1 Results4. SDGs・ESG5. AppendixCopyright © V-cube, Inc. All Rights Reserved.42Corporate Summary (March 31, 2022)Communication DX CompanyCompany nameV-cube, Inc.EstablishedOctober 16, 1998Fiscal year endDecemberCapital (including capital surplus)Listed Markets3,465 million JPYThe Prime Market of the Tokyo Stock Exchange (3681) * from April 4, 2022Group companiesDomestic 3, Overseas 6Number of EmployeesTotal 467 (consolidated)Copyright © V-cube, Inc. All Rights Reserved.43V-cube, Inc.SingaporeUSATelecube, Inc.Wizlearn Technologies Pte. Ltd.V-cube USA, Inc.Xyvid, Inc.Group Companies (March 31, 2022)Telecube Services. Co., Ltd.※Affiliates Accounted for by Equity MethodExena Learning Hub Pte. Ltd.Pave Education Pte. Ltd.V-cube (Thailand) Co., Ltd.※Affiliates Accounted for by Equity MethodCopyright © V-cube, Inc. All Rights Reserved.44Other Group companies: Senshin Robotics,IncManagement Team (March 31, 2022)Management team consisting mainly of members from the time of foundingRepresentative Director, President and CEO Masaya Takada2001 Director of V-cube Inc.2002 Graduated from Keio Graduate School2006 Vice president of V-cube Inc.2012 Executive Vice President of V-cube Inc.2022 President and CEO of V-cube Inc.Director, CTOYosuke Kamezaki2002 Entered V-cube Inc.2007 Executive Officer of V-cube Inc.2012 Director of V-cube Inc.Representative Director,Chairman and Group CEONaoaki Mashita1998 Established V-cube Inc.2002 Graduated from Keio Graduate School2003 Established V-cube USA, Inc.2022 Chairman and Group CEO of V-cube Inc.Director, Vice President and COO Jun Mizutani2006 Entered V-cube Inc. (as new graduate)2012 Deputy General Manager of Sales Division2015 General Manager of Sales Division2016 Director of V-cube Inc.2019 Managing Director of V-cube Inc. 2021 Senior Managing Director of V-cube Inc.2022 Vice president of V-cube Inc.Director, CFOKazuki Yamamoto2003 Joined Deloitte Touche Tohmatsu2017 Joined Regional Economy Vitalization Corporation of Japan (REVIC) 2019 CFO and General Manager of CorporatePlanning Division of V-cube Inc.2021 Director of V-cube Inc.Copyright © V-cube, Inc. All Rights Reserved.45Outside Directors and Auditors (March 31, 2022)Corporate Governance by Experienced and Strong Outside Directors and AuditorsTitleNameIndependent DirectorCareer summaryOutside directorNorio MurakamiOutside directorKenichi NishimuraOutside directorNaomi KoshiFull-time outside auditorKikuo FukushimaOutside auditorKiyoji OdashimaOutside auditorDaiko Matsuyama〇〇〇〇〇〇Representative director, Murakami Norio Office,Inc. Outside director, Cell Source Co.,Ltd. ,Former Vice president, Google, Inc. and President, Google,Inc.Outside director, Hakusan.Inc. Former President, NTT-NeomeitFormer Advisor, Mirait,Inc.Partner Attorney, Miura Law OfficeOutside director, SoftBank Corp. Representative director and CEO, OnBoard K.K. Former Mayor of Otsu CityRepresentative, Success Coaching StudioRepresentative tax attorney, Odashima Kiyoji Tax Account OfficeOutside Corporate Auditor, Ebara Foods Industry,Inc. Deputy Head Priest of Taizoin Zen Buddhist TempleVisit Japan Ambassador, Japan Tourism AgencyVisiting Lecturer, Stanford UniversityMember of the Kyoto City Board of EducationCopyright © V-cube, Inc. All Rights Reserved.46Status of Group Employees (excluding contract employee, etc.)By groupBy regionBy functionV-cubeSubsidiariesJapanSingaporeOthersTechnicalSalesAdmin.’ 21/12′ 22/3′ 21/12′ 22/3′ 21/12′ 22/349014134946712034745721324449043883584674368356Number of EmployeesV-cubeSubsidiaries4021662364051222834906323619146757240170490141349Copyright © V-cube, Inc. All Rights Reserved.47’18/12’19/12’20/12’21/12Segment DetailsMain business domainFace-to-face marketSaaS products offeredInternal and external communicationV-CUBE meeting• Remoting Events in Various Online pharmaceutical seminarEnterpriseDX BusinessEvent DX BusinessThird Place DX Business••Provision of remote communication products for internal and external companies• Development, provision and operational support for industry/application-specific remote communication products using SDK and hardwareFieldsProduct provision and operational design, direction operations, log analysis, and other operational support•Providing Telecube to companies and public use• Higher value-added Telecubeand development and deployment of third-place management and operation systemsDX of customer business and servicesKnowledge share/LMSOn-line job placement/recruitment briefingsVirtual AGM of shareholders and Financial Results BriefingFor companiesFor the public useCopyright © V-cube, Inc. All Rights Reserved.48Telecube ConnectThird Place DX Business Telecube offer model classificationSolving the problem of “lack of space” faced when realizing “flexible and selectable work styles,” which is one of the socialissues.Aiming to provide a variety of services as a high-value-added third place (telemedicine, English conversation lessons, administrative procedures, housing consultation)For Corporate CustomersFor Public UseSales destinationDirect salesOKAMURA CORPORATIONIRISCHITOSE.CO.,LtdJR EastJR CentralInstallationLocationInside companiesShortage of conference rooms due to the spread of web conferences, and work-intensive boothsSTATION BOOTHin the shared-office business STATION WORK EXPRESS WORKin the work space business (Tokaido Shinkansen main stations)Sales modelSubscriptionSelloutRoyaltySellout + Reservation System・Electronic Lock Monthly Usage FeeCopyright © V-cube, Inc. All Rights Reserved.49Telecube Services. Co., Ltd.Building entrance/Station/ Airport/ Super market/ Convenience storeProvide Even Opportunity to EverybodyBeyond TeleworkCopyright © V-cube, Inc. All Rights Reserved.50DisclaimerThis 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 theinformation at hand when creating this document. The statements in this document is basedon the aforementioned principle. The statements and prerequisite stated in this documents isonly a prediction and forecast of the future, we do not guarantee all statements will be realizedin the future. Please refer to V-cube’s summary of accounts, securities report, disclosuremagazines, 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 forchanges occurred after the creating of the documents, V-cube does not resume responsibilityof updating the information. Your understanding is appreciated.Information disclosed regarding other companies in this document are from public releases, incase of misinterpretation, V-cube do not guarantee the accuracy of this information. V-cubedoes not resume responsibility for any misinterpretation, mistake, or damages caused by theuse of this document and the data used in this documents. Your understanding is appreciated.V-cube claims all rights of this documents, please do not by any means or purposes,electronically or mechanically copy or forward this documents.Copyright © V-cube, Inc. All Rights Reserved.51