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.

July 12, 2019

Consolidated Financial Results
for the Fiscal Year Ended May 31, 2019
(under Japanese GAAP)
Company name:
Sansan, Inc.
Listing:
Tokyo Stock Exchange
Securities code:
4443
URL:
https://www.corp-sansan.com/
Representative:
Chikahiro Terada, CEO
Inquiries:
Muneyuki Hashimoto, CFO
TEL:+81-3-6758-0033
Scheduled date of ordinary general meeting of shareholders:
Scheduled date to commence dividend payments:
Scheduled date to file annual securities report:
Preparation of supplementary material on financial results:
Holding of financial results briefing:

August 20, 2019–

August 28, 2019
Yes
Yes (for institutional investors andanalysts)(Millions of yen with fractional amounts rounded down, unless otherwise noted)

1. Consolidated financial results for the fiscal year ended May 31, 2019 (from June 1, 2018 to May
31, 2019)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended

Operating profit

Millions of yen% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen%

May 31, 201910,206

39.3

(849)

–

(891)

–

(945)

–

May 31, 2018

7,324

51.3

(3,061)–(3,077)–(3,085)–

Note: Comprehensive income

Fiscal year ended
May 31, 2019
May 31, 2018
Reference:

For the fiscal year ended May 31, 2019: ¥(950) million [–%]For the fiscal year ended May 31, 2018: ¥(3,081) million [–%]

Basic earnings per
share

Diluted earnings
per share

Return on equity

Ordinary profit/
total assets

Operating profit/
net sales

Yen

Yen

%

%

%

(40.5)(462.8)(12.4)(70.0)(8.3)(41.8)(40.42)(168.44)––

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended May 31, 2019: ¥– million
For the fiscal year ended May 31, 2018: ¥– million
Notes: 1. The Company conducted a stock split of common share at a ratio of 10,000-for-1 on June 15, 2018. Basicearnings per share is calculated on the assumption that said splitting of shares had been made at the beginning of
the previous fiscal year.
2. Diluted earnings per share are not described here because, although there are potentially dilutive shares, basic loss
per share was recorded.

(2) Consolidated financial position
Total assets
As of
May 31, 2019
May 31, 2018

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

9,079
5,299

3,372
1,312

37.0
24.8

114.60(311.50)

Reference:

EquityFor the fiscal year ended May 31, 2019: ¥3,362 million
For the fiscal year ended May 31, 2018: ¥1,312 million
Note: The Company conducted a stock split of common share at a ratio of 10,000-for-1 on June 15, 2018. Net assets per
share are calculated on the assumption that said splitting of shares had been made at the beginning of the previous
fiscal year.

(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
May 31, 2019
May 31, 2018

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

1,072(1,609)(2,282)
(679)

3,132
3,826

5,468
3,546

2. Cash dividends
Annual dividends

Fiscal year ended
May 31, 2018
Fiscal year ended
May 31, 2019
Fiscal year ending
May 31, 2020
(Forecast)

Total cash
dividends(Total)Firstquarterend

Secondquarterend

Third
quarterend

Fiscalyear-end

Yen

Yen

Yen

Yen

Yen Millions of yen

Total

Ratio of
Payout ratio dividends to(Consolidated) net assets(Consolidated)
%

%

–

0.00

–

0.00

0.00

–

–

–

–

0.00

–

0.00

0.00

–

–

–

–

–

–

–

–

–

3. Consolidated earnings forecasts for the fiscal year ending May 31, 2020 (from June 1, 2019 to
May 31, 2020)
Net sales

Fiscal year ending
May 31, 2020

(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings perowners of parent
share

Operating profit

Millions ofyen%Millions ofyen

13,816

35.4

724

%
–

Millions of
yen
670

%
–

Millions of
yen
–

%
–

Yen
–

Note: Although the Company is expecting to return to the black and post a profit attributable to owners of parent, it isdifficult to make a precise forecast. Accordingly, the Company will refrain from disclosing a concrete forecast at thispoint in time. For details, please refer to “(4) Future outlook” under “1. Review of operating results and others” onpage 4 of the attached materials.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) 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
(3) Number of issued shares (Common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of May 31, 201929,432,353 shares

As of May 31, 2018

20,400,000 sharesb. Number of treasury shares at the end of the period
As of May 31, 2019–

As of May 31, 2018–

c. Average number of outstanding shares during the period
As of May 31, 201923,394,286 shares

As of May 31, 2018

20,400,000 shares

Note: The Company conducted a stock split of common share at a ratio of 10,000-for-1 on June 15, 2018. “Total number ofissued shares at the end of the period,” “Number of treasury shares at the end of the period,” and “Average number ofshares outstanding during the period” are calculated on the assumption that said splitting of shares had been made at
the beginning of the previous fiscal year.

(Reference) Overview of Non-consolidated financial results
Non-consolidated financial results for the fiscal year ended May 31, 2019 (from June 1, 2018 to May
31, 2019)(1) Non-consolidated operating results
Net sales
Fiscal year ended
May 31, 2019
May 31, 2018

Operating profit

Millions of yen

10,2007,318

Ordinary profit% Millions of yen

39.4
51.4

Basic earnings per
share
Fiscal year ended
May 31, 2019
May 31, 2018

(Percentages indicate year-on-year changes.)% Millions of yen(848)(3,006)––

Diluted earnings per
share

Yen

(40.48)(178.68)

Profit

Yen
–
–

(893)
(3,022)% Millions of yen
–
–

(947)
(3,294)%––

(2) Non-consolidated financial position
Total assets
As of
May 31, 2019
May 31, 2018

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

%

Yen

9,082
5,293

3,376
1,312

37.1
24.8

114.71(311.50)

Reference:

EquityFor the fiscal year ended May 31, 2019: ¥3,365 million
For the fiscal year ended May 31, 2018: ¥1,312 million
Notes: 1. The Company conducted a stock split of common share at a ratio of 10,000-for-1 on June 15, 2018. Net assets per
share and basic earnings per share are calculated on the assumption that said splitting of shares had been made at
the beginning of the previous fiscal year.
2. Diluted earnings per share are not described here because, although there are potentially dilutive shares, basic loss
per share was recorded.

* Financial results reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Proper use of earnings forecasts, and other special matters
Forward-looking statements, including the consolidated 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 consolidated forecasts due to various factors.

Attached Material
Index
1. Review of operating results and others ..................................................................................................... 2(1) Review of operating results for the fiscal year under review ................................................................ 2(2) Review of financial position for the fiscal year under review ............................................................... 3(3) Overview of cash flows for the fiscal year under review ...................................................................... 3(4) Future outlook ....................................................................................................................................... 4
2. Basic concept regarding selection of accounting standards ...................................................................... 5
3. Consolidated financial statements and significant notes thereto............................................................... 6(1) Consolidated balance sheet.................................................................................................................... 6(2) Consolidated statement of income and consolidated statement of comprehensive income................... 8
Consolidated statement of income ......................................................................................................... 8
Consolidated statement of comprehensive income ................................................................................ 9(3) Consolidated statement of changes in equity....................................................................................... 10(4) Consolidated statement of cash flows.................................................................................................. 12(5) Notes to consolidated financial statements .......................................................................................... 14(Notes on premise of going concern)................................................................................................... 14(Segment information, etc.) ................................................................................................................. 15(Per share information) ........................................................................................................................ 16(Significant events after reporting period) ........................................................................................... 18- 1 -1. Review of operating results and others(1) Review of operating results for the fiscal year under review
Under the mission of “Turning encounters into innovation,” the Group is developing business activities
by providing various solution services such as business card management.
In the fiscal year under review, the Company engaged in initiatives such as strengthening the sales
structure, including human resources, and advertising, focused on TV commercials, in order to realize
continuous growth of net sales.
As a result, business results have steadily improved for the Sansan Business and the Eight Business,
and net sales totaled ¥10,206,014 thousand (up 39.3% year on year), gross profit totaled ¥8,608,441
thousand (up 46.2% year on year), and gross profit margin was 84.3% (up 3.9 points year on year) in
the fiscal year under review. On the other hand, losses were recorded for multi-step profit or loss underoperating profit or loss due to being in the phase in which upfront investments were being made torealize growth. Operating loss totaled ¥849,739 thousand (compared to ¥3,061,454 thousand in theprevious fiscal year), ordinary loss totaled ¥891,689 thousand (compared to ¥3,077,015 thousand in theprevious fiscal year), and loss attributable to owners of parent totaled ¥945,539 thousand (compared to¥3,085,890 thousand in the previous fiscal year). However, multi-step losses shrank compared to theprevious fiscal year due to the continued growth of the Sansan and Eight businesses, as well as reduced
advertising expenses for the Eight Business in particular.
In addition, the Company received ¥3,000,000 thousand in financing (capital increase through thirdparty allotment) in December 2018 to further strengthen and accelerate business development.
Results by segment are as follows.
(i) Sansan Business
The Company continued to engage in initiatives such as strengthening the sales structure, including
hiring of salespeople, and advertising, focused on TV commercials, in order to further increase thenumber of accounts and increase net sales per account for Sansan, a B2B cloud-based business cardmanagement service. In addition, the Company made efforts to improve product strengths byreforming the product concept in March 2019 to “Sansan, Where Business Starts” and improving
various functions, updating the design, etc. As a result, the number of accounts totaled 5,823 (up13.1% year on year) and the average rate of monthly cancellations over the past 12 months was
0.66% (down 0.1 points year on year) at the end of the fiscal year under review.
As a result, net sales totaled ¥9,639,479 thousand (up 36.8% year on year) and segment profit
totaled ¥2,909,507 thousand (up 102.4% year on year) at the end of the fiscal year under review.
(ii) Eight BusinessAlong with continued efforts to increase the number of users using Eight, our B2C business cardmanagement app, the Company focused on initiatives such as strengthening the development ofservices for businesses, as well as developing new services in order to accelerate full monetizationof the entire business. Updates to the application were implemented in December 2018 for iOS andMarch 2019 for Android, and this effort to improve convenience for users led to 2,440 thousand
users at the end of the fiscal year under review (up 300 thousand users year on year). In addition,
we started “Meets”, a business event that encourages resolving challenges, in September 2018 and“Eight Career Design”, a recruitment service, in January 2019 as new services for businesses.
As a result, net sales for the fiscal year under review totaled ¥566,535 thousand (up 102.8% year onyear). Segment loss was recorded at ¥1,212,980 thousand (compared to ¥2,964,347 thousand in theprevious fiscal year) due to being in the phase in which upfront investments were being made toincrease future profitability. On the other hand, losses greatly decreased this fiscal year comparedto the previous fiscal year in which the Company strengthened advertising activities aiming toincrease the number of users.
- 2 -(2) Review of financial position for the fiscal year under review
AssetsTotal assets at the end of the fiscal year under review were ¥9,079,116 thousand, up ¥3,780,090
thousand from the end of the previous fiscal year. This was primarily due to an increase of ¥1,093,800
thousand in the purchase of investment securities in addition to an increase of ¥2,081,017 thousand incash and deposits due to financing (capital increase through third-party allotment) received in
December 2018.
Liabilities
Total liabilities at the end of the fiscal year under review were ¥5,706,151 thousand, up ¥1,719,648
thousand from the end of the previous fiscal year. This was primarily due to an increase of ¥1,125,149
thousand in advances received from receiving a lump-sum payment of contract term fees from
customers.
Net assets
Net assets at the end of the fiscal year under review were ¥3,372,965 thousand, up ¥2,060,441 thousand
from the end of the previous fiscal year. This was primarily due to an increase in capital stock andcapital surplus of ¥3,000,000 thousand from financing (capital increase through third-party allotment)
received in December 2018, as well as a decrease of ¥945,539 thousand in retained earnings due torecognition of loss attributable to owners of parent. In addition, the Company reduced capital stock by¥1,851,627 thousand and capital surplus by ¥1,443,034 thousand and transferred them to retained
earnings in order to achieve future flexible and dynamic capital policy by eliminating cumulative loss
early based on the resolution at the Ordinary General Meeting of Shareholders that took place on
August 21, 2018.
(3) Overview of cash flows for the fiscal year under review
Cash and cash equivalents (hereinafter “capital”) for the fiscal year ended May 31, 2019 totaled¥5,468,495 thousand, an increase of ¥1,922,476 thousand compared to the previous fiscal year (up54.2% year on year).
The respective cash flow positions and the factors thereof in the fiscal year under review are as follows.
Cash flows from operating activities
The amount of capital provided by operating activities totaled ¥1,072,808 thousand (compared to¥1,609,791 thousand used in the previous fiscal year). The main reason for this increase in capital wasrecognition of depreciation, non-cash expense, of ¥459,657 thousand and an increase of ¥1,125,161
thousand in advances received, and the main factor for the decrease in capital was recognition of loss
before income taxes of ¥937,602 thousand.
Cash flows from investing activities
The amount of capital used in investing activities totaled ¥2,282,733 thousand (up 236.1% year onyear). This was primarily due to purchase of property, plant and equipment totaling ¥316,310 thousand,purchase of intangible assets totaling ¥574,297 thousand, and purchase of investment securities totaling¥1,093,800 thousand.
Cash flows from financing activities
The amount of capital provided by financing activities totaled ¥3,132,304 thousand (down 18.1% year
on year). This was primarily due to ¥2,989,470 thousand in proceeds from the issuance of new shares,
received through third-party allotment.

- 3 -(4) Future outlook
In the fiscal year ending May 31, 2020, the Company is expecting to see net sales of ¥13,816,000
thousand (up 35.4% year on year) mainly due to the continued growth of the Sansan business, inaddition to the development of monetization of the Eight business contributing to business results. In
addition, for multi-step profit or loss, the Company is expecting various aspects to become profitable
due to growth in net sales, with operating profit totaling ¥724,000 thousand (compared to operating
loss of ¥849,739 thousand in the previous fiscal year) and ordinary profit totaling ¥670,000 thousand(compared to ordinary loss of ¥891,689 thousand in the previous fiscal year). Moreover, the Company
is expecting profitability in profit attributable to owners of parent (compared to loss attributable toowners of parent of ¥945,539 thousand in the previous fiscal year) and an increased estimate of taxable
income due to improved performance in the medium term. Accordingly, it is possible that the Company
will record income taxes - deferred mainly due to an increase in deferred tax assets pertaining to tax
loss carryforward in the fiscal year ending May 31, 2020, but as it is difficult to detail the amount to berecorded in income taxes - deferred based on prospective business performance, etc. for the fiscal year
ending May 31, 2021, concrete forecasts for profit attributable to owners of parent are not disclosed.

- 4 -2. Basic concept regarding selection of accounting standards
In consideration of comparability with other companies in Japan, the Group applies Japanese accounting
standard.

- 5 -3. Consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Thousands of yen)
As of May 31, 2018
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Prepaid expenses
Consumption taxes receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment Securities
Leasehold deposits
Other
Total investments and other assets
Total non-current assets
Total assets- 6 -As of May 31, 2019

3,546,018
207,224
255,550
82,38079,867(4,517)
4,166,523

5,627,035
318,354322,660
266
32,996(2,704)
6,298,608

222,633(119,759)
102,873
125,560(64,081)
61,478164,352

502,742(164,952)
337,789
158,434(89,299)
69,134
406,924

601,830
620
602,451

834,737390
835,127–
358,313
7,385
365,698
1,132,502
5,299,026

1,093,800
439,537
5,118
1,538,455
2,780,508
9,079,116

(Thousands of yen)
As of May 31, 2018
Liabilities
Current liabilities
Accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Advances received
Provision for bonuses
Provision for loss on closure of business locations
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Total shareholders’ equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive income
Share acquisition rights
Total net assets
Total liabilities and net assets- 7 -As of May 31, 201959,883
13,50094,534
654,533
24,258–2,798,027
133,416–
41,5633,819,717

96,16918,000133,134
770,424
41,283
184,745
3,923,177
199,0106,960
55,8685,428,772

127,706
39,079166,785
3,986,502

233,71443,664
277,378
5,706,151

3,164,128
1,443,034(3,291,714)
1,315,448

2,812,501
1,500,000(942,592)
3,369,909(2,925)(2,925)–
1,312,523
5,299,026(7,607)(7,607)
10,663
3,372,965
9,079,116

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Thousands of yen)
Fiscal year ended
May 31, 2018
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating loss
Non-operating income
Interest and dividend income
Foreign exchange gains
Subsidy income
Cancellation penalty income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on cancellation of leases
Share issuance cost
Stock market listing expenses
Loss on cancellation of rental contracts
Provision for loss on closure of business locations
Other
Total non-operating expenses
Ordinary loss
Extraordinary income
Gain on reversal of share acquisition rights
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Total extraordinary losses
Loss before income taxes
Income taxes - current
Loss
Loss attributable to owners of parent- 8 -Fiscal year ended
May 31, 2019

7,324,098
1,435,520
5,888,577
8,950,032(3,061,454)

10,206,014
1,597,573
8,608,441
9,458,181(849,739)

37
495
3,271
4,514
2,279
10,597

2,079
1,492
475
10,343
1,679
16,0695,719
5,115
14,836–––486
26,158(3,077,015)

4,766
8,836
10,5308,886
16,1306,960
1,910
58,019(891,689)

–
–

4,725
4,725

1,528
–
1,528
(3,078,543)
7,346(3,085,890)(3,085,890)

16,38734,25050,637(937,602)
7,937(945,539)(945,539)

Consolidated statement of comprehensive income(Thousands of yen)
Fiscal year ended
May 31, 2018
Loss
Other comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent- 9 -Fiscal year ended
May 31, 2019(3,085,890)(945,539)

3,989
3,989
(3,081,901)(4,682)(4,682)(950,221)(3,081,901)(950,221)(3) Consolidated statement of changes in equity
Fiscal year ended May 31, 2018
(Thousands of yen)
Shareholders’ equity
Total shareholders’equityCapital stock

Capital surplus

Retained earnings

1,053,230–(873,688)

179,541

2,110,898

2,110,898–

4,221,797

Deficit disposition–(667,864)

667,864–

Loss attributable toowners of parent––(3,085,890)(3,085,890)

–

–

–

–

2,110,898

1,443,034(2,418,026)

1,135,906

3,164,128

1,443,034(3,291,714)

1,315,448

Balance at beginning ofcurrent period
Changes of items during
periodIssuance of new shares

Net changes of items
other than shareholders’equityTotal changes of items during
periodBalance at end of current
periodAccumulated other comprehensive income
Foreign currencytranslation
adjustment

Total accumulated
othercomprehensive
income(6,914)(6,914)

172,627

Issuance of new shares––

4,221,797

Deficit disposition

–

–

–

Loss attributable toowners of parent––(3,085,890)

3,989

3,989

3,989

3,989

3,989

1,139,896(2,925)(2,925)

1,312,523

Balance at beginning ofcurrent period
Changes of items during
periodNet changes of items
other than shareholders’equityTotal changes of items during
periodBalance at end of current
period- 10 -

Total net assets

Fiscal year ended May 31, 2019
(Thousands of yen)
Shareholders’ equity
Total shareholders’equityCapital stock

Capital surplus

Retained earnings

3,164,128

1,443,034(3,291,714)

1,315,448

Issuance of new shares

1,500,000

1,500,000–

3,000,000

Deficit disposition(1,851,627)(1,443,034)

3,294,661–

Loss attributable toowners of parent––(945,539)(945,539)

–

–

–

–

(351,627)

56,9652,349,122

2,054,460

2,812,501

1,500,000(942,592)

3,369,909

Balance at beginning ofcurrent period
Changes of items during
periodNet changes of items
other than shareholders’equityTotal changes of items during
periodBalance at end of current
periodAccumulated other comprehensive income
Foreign currencytranslation
adjustment

Total accumulated
othercomprehensive
incomeShare acquisitionrightsTotal net assets(2,925)(2,925)–

1,312,523

Issuance of new shares

–

–

–

3,000,000

Deficit disposition

–

–

–

–

Loss attributable toowners of parent

–

–

–

(945,539)(4,682)(4,682)

10,663

5,981(4,682)(4,682)

10,6632,060,441(7,607)(7,607)

10,663

3,372,965

Balance at beginning ofcurrent period
Changes of items during
periodNet changes of items
other than shareholders’equityTotal changes of items during
periodBalance at end of current
period- 11 -

(4) Consolidated statement of cash flows(Thousands of yen)
Fiscal year ended
May 31, 2018
Cash flows from operating activities
Loss before income taxes
Depreciation
Impairment loss
Increase (decrease) in provision for loss on closureof business locations
Share issuance cost
Loss on retirement of non-current assets
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Interest and dividend income
Interest expenses
Gain on reversal of share acquisition rights
Decrease (increase) in notes and accounts receivable- tradeDecrease (increase) in prepaid expenses
Decrease (increase) in consumption taxes refund
receivable
Decrease (increase) in other assets
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Increase (decrease) in other liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Payments for leasehold deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of common shares
Proceeds from issuance of share acquisition rights
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents- 12 -

Fiscal year ended
May 31, 2019

(3,078,543)
366,437–(937,602)
459,657
34,250–6,960

14,836
1,528

10,53016,387(540)(1,812)33,820
(37)
5,719
–

65,605(2,079)4,766(4,725)(41,779)(111,289)

204,868(67,067)(79,009)

83,137(41,039)

49,92926,08636,285333,545(104,907)
697,744
16,67946,608(1,597,980)
37(5,719)(6,127)(1,609,791)

50,277
184,745
1,125,161
24,351
56,123
1,083,592
1,297(4,822)(7,258)1,072,808–(72,188)(408,415)–(199,182)
600(679,187)(163,176)(316,310)(574,297)(1,093,800)(226,962)
91,813(2,282,733)(283,284)
50,000(131,756)
4,206,961–(15,434)
3,826,486

4,500
290,000(145,392)
2,989,470
15,388(21,662)
3,132,304

4,099

96

1,541,607

1,922,476

(Thousands of yen)
Fiscal year ended
May 31, 2018
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

2,004,410
3,546,018- 13 -

Fiscal year ended
May 31, 2019
3,546,018
5,468,495

(5) Notes to consolidated financial statements(Notes on premise of going concern)
Not applicable.

- 14 -

(Segment information, etc.)[Segment information]
1. Description of reportable segments
The reportable segments used by the Group are components whose discrete financial data isavailable, and are subject to periodic review by the Board of Directors to facilitate decisions
related to the allocation of resources and the evaluation of business performance.
In the operating of its business activities, the Group has established business divisions andcompanies to engage in specific services, and it formulates comprehensive strategies for theservices that each business division and company provides.
Accordingly, the Group’s operations are made up of segments engaged in specific services
under the basic operating structures of business divisions or companies, and it has the tworeportable segments of the “Sansan Business” and the “Eight Business.”
Descriptions of the services belonging to each segment are stated below.
Reportable segments
Sansan Business
Eight Business

Description of services in segment
Provision of “Sansan,” a B2B business card management service
Provision of “Eight,” a B2C professional network service

2. Methods of calculating the amount of sales, profit (loss), assets, liabilities, and other items foreach reportable segment
The accounting method used for reported business segments is the same as the description in“Matters forming the basis of preparing the consolidated financial statements.”
The profit stated in the reportable segments is a figure based on operating profit.
3. Information on the amount of sales, profit (loss), assets, liabilities, and other items for eachreportable segment
Fiscal year ended May 31, 2018
(Thousands of yen)Amount in the
consolidated
Adjustment
financial(Note) 1
statement(Note) 2

Reportable segment
SansanBusiness
Net sales
Sales to external customers
Inter-segment sales andtransfers

Eight BusinessTotal

7,044,797

279,301

7,324,098–

7,324,098

–

–

–

–

–

Total

7,044,797

279,301

7,324,098–

7,324,098

Segment profit (loss)

1,437,577(2,964,347)(1,526,770)(1,534,683)(3,061,454)

224,891

83,692308,583

57,854366,437

Other items
Depreciation

Notes: 1. The adjustments stated for segment profit (loss) and depreciation are the amounts of corporate expenses not
attributable to any reportable segment and mostly consist of general and administrative expenses.
2. Segment profit (loss) is adjusted with operating loss in the consolidated statement of income.
3. Segment assets and liabilities have not been shown, as information relating to assets and liabilities are notperiodically provided to the supreme decision-making authority of the Company and are not subject toperformance evaluation.

- 15 -

Fiscal year ended May 31, 2019
(Thousands of yen)Amount in the
consolidated
Adjustment
financial(Note) 1
statement(Note) 2

Reportable segment
SansanBusiness
Net sales
Sales to external customers
Inter-segment sales andtransfers

Eight Business

Total

9,639,479

566,535

10,206,014–

10,206,014

–

–

–

–

–

Total

9,639,479

566,535

10,206,014–

10,206,014

Segment profit (loss)

2,909,507(1,212,980)

1,696,526(2,546,266)(849,739)

282,50943,413

325,923

133,734

459,657

Other items
Depreciation

Notes: 1. The adjustments stated for segment profit (loss) and depreciation are the amounts of corporate expenses not
attributable to any reportable segment and mostly consist of general and administrative expenses.
2. Segment profit (loss) is adjusted with operating loss in the consolidated statement of income.
3. Segment assets and liabilities have not been shown, as information relating to assets and liabilities are notperiodically provided to the supreme decision-making authority of the Company and are not subject toperformance evaluation.

(Per share information)
Fiscal year ended May 31, 2018(from June 1, 2017 to May 31, 2018)

Fiscal year ended May 31, 2019(from June 1, 2018 to May 31, 2019)

Net assets per share(311.50) yen

114.60 yen

Basic loss per share(168.44) yen(40.42) yen

Notes: 1. Net assets per share is calculated by deducting the portion of residual assets that are dividends to preferredshareholders.
2. Diluted earnings per share is not stated because, although a balance of share acquisition rights exists, basic loss
per share was recorded.
3. The Company conducted a stock split at 10,000-for-1 on June 15, 2018 based on resolution at the meeting of theBoard of Directors held on May 29, 2018. Basic loss per share is calculated on the assumption that the stock split
had been made at the beginning of the previous fiscal year.
4. Basis for calculation of basic loss per share is as follows:- 16 -

Fiscal year ended May 31, 2018(from June 1, 2017 to May 31, 2018)

Fiscal year ended May 31, 2019(from June 1, 2018 to May 31, 2019)

Loss attributable to owners ofparent(Thousands of yen)

(3,085,890)(945,539)

350,386–[350,386]–(3,436,277)(945,539)

20,400,000

23,394,286

Overview of dilutive shares that are
not included in the calculation of

1st Share Acquisition Rights
Number of share acquisition rights:

1st Share Acquisition Rights
Number of share acquisition rights:

diluted earnings per share as they
have no dilutive effects

8 units(Common shares: 80,000 shares)

8 units(Common shares: 80,000 shares)

Amounts not attributable tocommon shareholders(Thousands of yen)[of which preferred dividends(Thousands of yen)]
Loss attributable to owners ofparent related to common shares(Thousands of yen)
Average number of commonshares outstanding during theperiod(Shares)

2nd Share Acquisition Rights
Number of share acquisition rights:
45,000 units(Common shares: 45,000 shares)
3rd Share Acquisition Rights
Number of share acquisition rights:
328,950 units(Common shares: 328,950 shares)
4th Share Acquisition Rights
Number of share acquisition rights:
534,611 units(Common shares: 534,611 shares)- 17 -

(Significant events after reporting period)
Issuance of shares
The Company has received payment on June 18, 2019 for new shares through the public offering basedon resolutions at meetings of the Board of Directors held on May 16 and May 30, 2019. Accordingly,
the number of issued shares, the amount of capital stock and legal capital surplus have increased.
Type and number of shares forsubscription

Common shares

Issue price¥4,500 per share

Subscription price¥4,207.5 per share

Total issue price¥2,250,000 thousand

Total subscription price¥2,103,750 thousand

The amount of increase in capital stockand legal capital surplus

Increase in capital stock
Increase in legal capital surplus

Payment dateJune 18, 2019

Fund usage

The Company plans to use the funds as working funds for marketinginvestments such as advertising expenses and promotion expenses, personnel
expenses, and recruiting expenses.

- 18 -

500,000 shares¥1,051,875 thousand¥1,051,875 thousand