Note:

This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

April 11, 2024

Financial Results for FY2023 Q3Company name: Sansan, Inc.
Listing:
Tokyo Stock Exchange
Securities code:
4443
URL:
https://www.corp-sansan.com/
Representative:
Chikahiro Terada, Representative Director & CEO
Inquiries:
Muneyuki Hashimoto, Director, Executive Officer, CFO
TEL:+81-3-6758-0033
Scheduled date to file quarterly securities report:
April 11, 2024
Scheduled date to commence dividend payment:–
Preparation of supplementary materials on financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors andanalysts)(Millions of yen with fractional amounts rounded down, unless otherwise noted)

1. Consolidated financial results for the first nine months of the fiscal year ending May 31, 2024
(from June 1, 2023 to February 29, 2024)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended

Millions ofyen%

February 29, 2024
February 28, 2023

24,234
18,177

33.3
23.6

Note: Comprehensive income

Nine months ended
February 29, 2024
February 28, 2023

(Percentages indicate year-on-year changes.)

Adjusted
operating profit(Note)

Operating profit

Ordinary profit

Profit attributableto owners ofparentMillions ofyenMillions ofyen%Millions ofyen%Millions ofyen%

738 36.9
539 129.8

677
501

35.2
(33.2)

539
738(26.9)
28.4%

1,113 46.5
760 148.4

Nine months ended February 29, 2024: ¥505 million
Nine months ended February 28, 2023: ¥822 million

Basic earnings per
share

Diluted earnings
per share

Yen

Yen

4.30
5.91

4.24
5.84

[(38.5)%][–%]

Note: Adjusted operating profit = operating profit + share-based payment expenses + expenses that arise from businesscombinations (amortization of goodwill and amortization of intangible assets)(2) Consolidated financial position
Total assets
As ofFebruary 29, 2024
May 31, 2023
Reference:

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

32,82331,20014,33813,19041.2
40.6

EquityAs of February 29, 2024:
As of May 31, 2023:¥13,532 million¥12,660 million

2. Cash dividends
Annual dividends
First quarter-end

Second quarter-end Third quarter-end

Yen

Fiscal year ended
May 31, 2023
Fiscal year ending
May 31, 2024

Yen

Yen

–

0.00

–

–

0.00

–

Fiscal year ending
May 31, 2024
(Forecast)Fiscal year-end

Total

Yen

Yen

0.00

0.00

0.00

0.00

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending May 31, 2024 (from June 1, 2023 to
May 31, 2024)(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ending
May 31, 2024

Adjusted operating profit

Millions of yen%

Millions of yen%

32,653
to33,674

28.0
to
32.0

1,240
to
1,852

31.7
to
96.6

Notes: 1. Revisions to the earnings forecasts most recently announced: None
2. For multi-step profit or loss under operating profit or loss, Sansan, Inc. (the “Company”) refrains from disclosing
a concrete forecast because it is difficult to make a reasonable estimate of share-based payment expenses, which
may vary significantly depending on the level of the Company’s stock price, and some non-operating income or
expenses.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Application of specific accounting for preparing the quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes in accounting policies due to revisions to accounting standards and other regulations:Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement: None
(4) Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of February 29, 2024

125,781,264 shares

As of May 31, 2023

125,410,584 sharesb. Number of treasury shares at the end of the period
As of February 29, 2024

871 shares

As of May 31, 2023

871 sharesc. Average number of outstanding shares during the period
For the nine months ended February 29, 2024

125,554,735 shares

For the nine months ended February 28, 2023

125,095,318 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
Forward-looking statements, including the earnings forecasts stated in these materials, are based on
information currently available to the Company and certain assumptions deemed reasonable. Results
may differ materially from the forecasts due to various factors.

Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q3

Attached Material
Index
1. Qualitative information on quarterly financial results .............................................................................. 2(1) Explanation of operating results ............................................................................................................ 2(2) Explanation of financial position ........................................................................................................... 6(3) Explanation of consolidated earnings forecasts and other forward-looking statements ........................ 6
2. Quarterly consolidated financial statements and significant notes thereto ............................................... 7(1) Quarterly consolidated balance sheet .................................................................................................... 7(2) Quarterly consolidated statements of income and comprehensive income ........................................... 9
Quarterly consolidated statement of income ......................................................................................... 9
Quarterly consolidated statement of comprehensive income .............................................................. 10(3) Notes to the quarterly consolidated financial statements..................................................................... 11(Notes on premise of going concern)................................................................................................... 11(Notes on significant changes in the amount of shareholders’ equity) ................................................ 11(Segment information, etc.) ................................................................................................................. 12(Significant events after reporting period) ........................................................................................... 13- 1 -Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q3

1. Qualitative information on quarterly financial results(1) Explanation of operating results
Under the mission of “Turning encounters into innovation” and the vision of “Become business
infrastructure,” the Company group (the “Group”) is providing cloud-based solutions that promote
digital transformation (DX) and reshape how people work, leading to encounters with people andcompanies that become business opportunities by using approaches that combine systems that use
technology and manpower to digitize analog information with cloud software.
Specifically, the Group is developing solutions to promote DX for corporate sales activities, invoicing
work, contract work, etc. Moreover, as a result of reforming awareness regarding DX, changes toworking styles, and greater attention being given to SaaS (Software as a Service) products, the DX
market is forecast to reach ¥6,519.5 billion by FY2030 (an expected increase of ¥3,791.8 billion fromFY2022) (Note 1), while the SaaS market in Japan is forecast to reach ¥2,099.0 billion by FY2027 (anexpected increase of ¥686.2 billion from FY2023) (Note 2). A sales DX solution Sansan, provided by
the Company, holds 82.4% share (Note 3) of the B2B business card management service market, andthis market has seen approximately 16-fold expansion from 2013 to 2022 in conjunction with thegrowth in the Company’s services. In addition, Bill One, a cloud-based invoice management solution
provided by the Company, captured the number one market share of the online invoice receiving
solution in terms of net sales (Note 4), with this market seeing a 156.8% increase year on year in
FY2022.
Consolidated financial results for the first nine months of the fiscal year ending May 31, 2024
(hereinafter, the “period under review”) is as follows.
(Millions of yen)

Net sales
Gross profit
Adjusted operating profit
Ordinary profit
Profit attributable to owners ofparentNine months ended
February 28, 2023

Nine months ended
February 29, 2024

YoY change

18,177
15,746760
501

24,234
20,6491,113
677+33.3%+31.1%+46.5%+35.2%

738

539(26.9)%In the period under review, backed by the positive order situation, the Group engaged in strengthening
the sales structure for Sansan and Bill One, as well as enhancing functions for each service, aiming for
further growth of net sales. In Eight Business, the Group worked to increase future profitability.
Consequently, results were strong in the period under review with net sales increasing 33.3% year on
year, gross profit increasing 31.1% year on year, and a gross profit margin of 85.2%, down 1.4 points
year on year. Adjusted operating profit increased 46.5% year on year and ordinary profit increased
35.2% year on year, mainly due to a decline in the ratio of advertising expenses to net sales, in addition
to an increase in net sales. In addition, profit attributable to owners of parent decreased 26.9% year on
year due to factors such as recording of a gain on sale of shares of subsidiaries and associates in thesame period of the previous fiscal year.
Notes: 1. Based on Market Edition and Vendor Strategy Edition of 2023 Outlook of the Digital
Transformation Market by Fuji Chimera Research Institute
2. Based on 2023 New Software Business Markets by Fuji Chimera Research Institute
3. Based on Latest Trends in Business Card Management Services in Sales Support DX 2024
(January 2024, survey by Seed Planning, in Japanese)
4. Deloitte Tohmatsu MIC Research Institute, “The Market of Online Invoice Receiving
Solution Continues to Grow at a Staggering Rate” (MIC IT Report, November 2023)- 2 -Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q3

Results by segment are as follows.
(i) Sansan/Bill One BusinessThis business segment includes services such as sales DX solution Sansan, and cloud-based invoice
management solution Bill One.
Results for Sansan/Bill One Business in the period under review are as follows.
(Millions of yen)
Nine months ended
February 28, 2023

Nine months ended
February 29, 2024

YoY change

16,232
14,54813,781
766
1,543
140
5,197

21,66916,75815,846
911
4,269
641
6,289

+33.5%+15.2%+15.0%+18.9%+176.6%+356.9%+21.0%

8,844
subscriptions

9,474
subscriptions+7.1%¥180 thousand¥193 thousand

+7.2%

0.46%

0.44%

(0.02) pts.

229
1,300
subscriptions

570
2,607
subscriptions+149.0%¥176 thousand¥218 thousand+23.9%

0.59%

0.33%

(0.26) pts.

Net sales (Note 5)
SansanSansan recurring sales
Sansan other sales
Bill One
OthersAdjusted operating profit
SansanNumber of subscriptions
Monthly recurring sales per
subscription
Last 12 months average ofmonthly churn rate (Note 6)
Bill OneMRR (Note 7)
Number of paid subscriptions
Monthly recurring sales per
paid subscription
Last 12 months average ofmonthly churn rate (Note 6)+100.5%

Notes: 5. The sum of sales to external customers and intersegment sales or transfers
6. Ratio of decrease in MRR associated with subscription cancellations to total MRR for
existing subscriptions for each service
7. Monthly recurring revenue
a. Sansan
In addition to working on strengthening the sales structure through hiring personnel, the Grouphas been optimizing the pricing structure and reviewing the fee settings taking into account themarket environment, the status of service enhancements, and other factors. As a result, thenumber of subscriptions and the monthly recurring sales per subscription for Sansan were up
7.1% year on year and 7.2% year on year, respectively. Furthermore, the last 12 months
average of monthly churn rate was 0.44%, a decrease of 0.02 points year on year, maintaining a
low churn rate of less than 1%.
As a result, net sales in Sansan increased 15.2% year on year, of which recurring sales (fixedrevenue) was up 15.0% year on year and other sales was up 18.9% year on year.

- 3 -Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q3

b. Bill One
In addition to working on strengthening the sales structure with a focus on hiring personnel, we
have been optimizing the pricing structure and reviewing the fee settings taking into accountthe market environment, the status of service enhancements, and other factors. As a result,steady progress has been made in acquiring new subscriptions, mainly from medium and large
enterprises, and the number of paid subscriptions and the monthly recurring sales per paid
subscription were up 100.5% year on year and 23.9% year on year, respectively. Furthermore,
the last 12 months average of monthly churn rate was 0.33%, a decrease of 0.26 points year on
year, maintaining a low churn rate of less than 1%.
As a result, net sales in Bill One increased 176.6% year on year, while in February 2024, MRR
was up 149.0% year on year and ARR (Note 8) was ¥6,844 million. In light of the positive
business results up until the end of the nine months ended February 29, 2024, the Group aims
for ARR of at least ¥7.5 billion in May 2024.
Note:

8. Annual recurring revenuec. Others
The Group focused on the launch of the Contract One, a contract DX solution service, utilizing
the strengths, knowledge, know-how, etc. cultivated through existing services. In addition,
CREATIVE SURVEY INC. became a consolidated subsidiary in March 2023 and its
contributions to consolidated earnings have been recorded from the fourth quarter of the fiscal
year ended May 31, 2023.
As a result, net sales of others was up 356.9% year on year.
As a result of these efforts, net sales increased 33.5% year on year and adjusted operating profit
increased 21.0% year on year in Sansan/Bill One Business.
(ii) Eight BusinessThis business segment includes Eight, a business card app, as well as the event transcription service
logmi series.
Results for Eight Business in the period under review are as follows.
(Millions of yen)
Nine months ended
February 28, 2023

Nine months ended
February 29, 2024

YoY change

1,848
225
1,623
(206)

2,280
255
2,025
(7)

+23.3%+13.2%+24.8%–

3.24 million
people3,398
subscriptions

3.52million
people4,397
subscriptions+0.27 million
peopleNet sales (Note 9)
B2C services
B2B services
Adjusted operating profit
Eight
Number of Eight users (Note10)
Number of subscriptions for
Eight Team

+29.4%

Notes: 9. The sum of sales to external customers and intersegment sales or transfers
10. Number of confirmed users who registered their business card to their profile after
downloading the app- 4 -Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q3

a. B2C services
As a result of the enhancement of functions such as the virtual card exchange function, thenumber of Eight users totaled 3.52 million, an increase of 0.27 million year on year, and net
sales from B2C services increased 13.2% year on year.
b. B2B services
The Group worked on strengthening monetization of the various services. As a result, net sales
from B2B services increased 24.8% year on year. In addition, the number of subscriptions for
Eight Team increased 29.4% year on year.
As a result of these efforts, net sales in Eight Business increased 23.3% year on year, and adjusted
operating loss was curtailed by ¥198 million year on year.

- 5 -Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q3(2) Explanation of financial position

Total assets
Total liabilities
Total net assets
Total liabilities and net assets

As of May 31, 2023

As ofFebruary 29, 2024

31,20018,00913,19031,20032,82318,484
14,33832,823(Millions of yen)
Change fromprevious fiscal
year-end+1,622+475+1,147+1,622

AssetsTotal assets at the end of the quarter under review were ¥32,823 million, up ¥1,622 million from theend of the previous fiscal year. This was primarily due to an increase of ¥1,824 million in leasehold
deposits, an increase of ¥548 million in prepaid expenses, an increase of ¥429 million in investment
securities, an increase of ¥240 million in goodwill, a decrease of ¥1,046 million in cash and deposits, adecrease of ¥351 million in accounts receivable - trade, and a decrease of ¥117 million in property,
plant and equipment.
Liabilities
Total liabilities at the end of the quarter under review were ¥18,484 million, up ¥475 million from theend of the previous fiscal year. This was primarily due to an increase of ¥939 million in long-termborrowings, an increase of ¥379 million in the current portion of long-term borrowings, a decrease of¥666 million in accounts payable - other and a decrease of ¥181 million in provision for bonuses.
Net assets
Net assets at the end of the quarter under review were ¥14,338 million, up ¥1,147 million from the endof the previous fiscal year. This was primarily due to an increase of ¥166 million both in share capitaland capital surplus as a result of exercise of stock options, an increase of ¥539 million in retained
earnings due to the recording of profit attributable to owners of parent and an increase of ¥216 million
in share acquisition rights.
(3) Explanation of consolidated earnings forecasts and other forward-looking statements
The forecasts of consolidated financial results for the fiscal year ending May 31, 2024 have notchanged from the forecast announced on July 13, 2023.

- 6 -Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q3

2. Quarterly consolidated financial statements and significant notes thereto(1) Quarterly consolidated balance sheet(Millions of yen)
As of May 31, 2023
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Software
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Leasehold deposits
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets- 7 -As of February 29, 2024

21,114
1,180
604
341
(32)
23,207

20,068
829
1,152
584
(34)
22,600

770

653

827
706
0
1,533

727
946
0
1,674

3,705
885
595
502
5,689
7,993
31,200

4,134
2,710
545
505
7,895
10,22332,823

Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q3(Millions of yen)
As of May 31, 2023
Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Advances received
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Provision for retirement benefits for directors (andother officers)
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets- 8 -As of February 29, 2024

338
558
1,929
206
410
10,729601
207
14,982

362
937
1,262
109
486
10,631419
192
14,403

2,838
–

3,778
51

–

56

188
3,027
18,009194
4,081
18,484

6,582
4,178
1,695
(2)
12,454

6,748
4,345
2,235
(2)
13,327

156
49
206
457
72
13,19031,200

136
68
205
674
131
14,33832,823

Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q3(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statement of income(Millions of yen)
Nine months ended
February 28, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest and dividend income
Subsidy income
Gain on sale of investment securities
Surrender value of insurance policies
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Commission expenses
Share of loss of entities accounted for using equity
methodLoss on investments in investment partnerships
Penalty loss on cancellation of rental contracts
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on reversal of share acquisition rights
Gain on sale of investment securities
Gain on sale of shares of subsidiaries and associates
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sale of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent- 9 -Nine months ended
February 29, 2024

18,177
2,431
15,746
15,207539

24,234
3,585
20,64919,911
738

3
11
291
–
16
322

3
15
–
12
5
36

9
12
6

11
19
2

287

–

28
–
15
360
501

22
19
21
97
677

0
–
619
620

2
36
–
39

26
–
26
1,094
292
59
351
742
3
738

6
13
19
696
143
46
190
506
(33)
539

Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q3

Quarterly consolidated statement of comprehensive income(Millions of yen)
Nine months ended
February 28, 2023
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 10 -

Nine months ended
February 29, 2024
742

506

62
17
79
822

(20)
19
(1)
505

818

538

3

(33)

Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q3(3) Notes to the quarterly consolidated financial statements(Notes on premise of going concern)
Not applicable.
(Notes on significant changes in the amount of shareholders’ equity)
Not applicable.

- 11 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q3(Segment information, etc.)[Segment information]
Ⅰ

First nine months of the fiscal year ended May 31, 2023 (from June 1, 2022 to February 28,
2023)
1. Information on the amount of sales and profit (loss) for each reportable segment(Millions of yen)
Reportable segments
Others(Note) 1

Sansan/Bill One
Business

Eight
Business

16,2291,847

18,077100

18,177

2

1

3

45

48

16,232

1,848

18,080145

18,226

5,197

(206)

4,990

(28)

4,962

Net sales
Sales to externalcustomers
Intersegment sales ortransfers
Total
Segment profit (loss)(Note) 2

Total

Total

Notes: 1. The “Others” category is a business segment that is not included in the reportable segments, and includes
subsidiaries’ businesses.
2. Segment profit (loss) is shown as adjusted operating profit (loss), which is the sum of operating profit(loss) plus share-based payment expenses and expenses arising from business combinations (amortizationof goodwill and amortization of intangible assets).
(Millions of yen)

Sansan/Eight

Adjustments

OthersAmount in
the quarterlyBill One
Business

Business

5,197

(206)

(28)

(4,202)

760

82

30

–

87

200

–

15

5

–

20

5,114

(252)

(33)

(4,290)539(Note)

consolidated
financialstatement

Segment profit (loss)
Share-based payment
expenses
Amortization of
goodwill andamortization of
intangible assets
Operating profit (loss)

Note: Adjustments are the amounts of corporate expenses not attributable to any reportable segment andmostly consist of general and administrative expenses.

2. Matters regarding changes in reportable segments(Change in the method of measurement of profit (loss) of reportable segments)
Previously, segment profit (loss) was shown as operating profit (loss). However, from the firstquarter of the fiscal year, this was changed so that segment profit (loss) is shown as adjusted
operating profit (loss), which is the sum of operating profit (loss) plus share-based payment
expenses and expenses arising from business combinations (amortization of goodwill andamortization of intangible assets), because the performance indicator used for management
purposes was changed to an indicator that shows the regular capacity to generate corporate
earnings after deducting expenses related to share-based payments, which may varysignificantly depending on the level of the Company’s stock price, and expenses that arise frombusiness combinations.
- 12 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q3

Ⅱ First nine months of the fiscal year ending May 31, 2024 (from June 1, 2023 to February 29,
2024)
1. Information on the amount of sales and profit (loss) for each reportable segment(Millions of yen)
Reportable segments
Others(Note) 1

Sansan/Bill One
Business

Eight
Business

21,6642,275

23,939294

24,234

5

4

10

84

95

21,6692,280

23,950379

24,329

6,289

(7)

6,281

(61)

6,219

Net sales
Sales to externalcustomers
Intersegment sales ortransfers
Total
Segment profit (loss)(Note) 2

Total

Total

Notes: 1. The “Others” category is a business segment that is not included in the reportable segments, and includes
subsidiaries’ businesses.
2. Segment profit (loss) is shown as adjusted operating profit (loss), which is the sum of operating profit(loss) plus share-based payment expenses and expenses arising from business combinations (amortizationof goodwill and amortization of intangible assets).
(Millions of yen)Amount in
Sansan/Bill One
Business

Eight
Business

Adjustments

Others(Note)

the quarterly
consolidated
financialstatement

Segment profit (loss)

6,289

(7)

(61)

(5,105)

1,113

Share-based payment
expenses

88

28

–

174

292

38

15

29

–

83

6,161

(51)

(91)

(5,280)738

Amortization of
goodwill andamortization of
intangible assets
Operating profit (loss)

Note: Adjustments are the amounts of corporate expenses not attributable to any reportable segment andmostly consist of general and administrative expenses.

2. Information on impairment losses of non-current assets or goodwill, etc. for each reportablesegment(Significant change in goodwill amount)In the “Others” segment, the Company acquired shares of Institute of Language Understanding
Inc. in the first quarter of the current fiscal year and included the company in the scope of
consolidation. In the nine months ended February 29, 2024, the resulting increase in goodwill
amounted to ¥299 million.
(Significant events after reporting period)
Not applicable.

- 13 -