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 14, 2022

Financial Results for FY2021 Q4Company 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 of annual general meeting of shareholders:August 30, 2022
Scheduled date to commence dividend payment:–
Scheduled date to file annual securities report:
August 31, 2022
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 fiscal year ended May 31, 2022 (from June 1, 2021 to May
31, 2022)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended
May 31, 2022
May 31, 2021

Operating profit

Millions of yen% Millions of yen

20,42016,184

Note: Comprehensive income

26.2
21.1

Reference:% Millions of yen(14.2)
(2.7)

968
375

% Millions of yen

158.3(13.9)

857
182

%

369.7
(46.2)For the fiscal year ended May 31, 2022: ¥(658) million [–%]For the fiscal year ended May 31, 2021: ¥1,820 million [449.3%]

Basic earnings per
share
Fiscal year ended
May 31, 2022
May 31, 2021

631
736

Profit attributable toowners of parent

Ordinary profit

Diluted earnings
per share

Return on equity

Ordinary profit/
total assets

Operating profit/
net sales

Yen

Yen

%

%

%

6.87
1.47

6.77
1.45

7.0
1.6

3.9
1.6

3.1
4.6

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended May 31, 2022: ¥(609) million
For the fiscal year ended May 31, 2021: ¥(285) million
Note: The Company implemented a stock split of common shares at a ratio of 4-for-1 on December 1, 2021. Therefore,
basic earnings per share and diluted 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) Consolidated financial position
Total assets
As of
May 31, 2022
May 31, 2021

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

26,292
24,31012,093
12,584

45.4
51.5

96.78
100.89Reference:

EquityAs of May 31, 2022:¥11,944 million
As of May 31, 2021:¥12,516 million
Note: The Company implemented a stock split of common shares at a ratio of 4-for-1 on December 1, 2021. Therefore, net
assets per share are calculated on the assumption that said splitting of shares had been made at the beginning of theprevious fiscal year.

(3)

Consolidated cash flows
Cash flows fromoperating activities

Fiscal year ended
May 31, 2022
May 31, 2021

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodMillions of yen

Millions of yen

Millions of yen

Millions of yen

3,123
3,011

(1,014)(551)

909(2,902)

15,245
12,223

2. Cash dividends
Annual dividends

Fiscal year ended
May 31, 2021
Fiscal year ended
May 31, 2022
Fiscal year ending
May 31, 2023
(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

–

–

–

–

0.00

–

0.00

0.00

–

3. Consolidated earnings forecasts for the fiscal year ending May 31, 2023 (from June 1, 2022 to
May 31, 2023)(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ending
May 31, 2023

Adjusted operating profit

Millions of yen%

Millions of yen%

25,117
to25,764

23.0
to
26.2

917
to
1,288

25.5
to
76.3

Note: For multi-step profit or loss under operating profit or loss, 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 profit or loss items. For details, pleaserefer to “(4) Future outlook” under “1. Qualitative information on consolidated financial results for the fiscal year
ended May 31, 2022” on page 7 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: Yes
b. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement: None
Note: For details, please refer to the section of “Changes in accounting policies” of “(5) Notes toconsolidated financial statements” under “3. Consolidated financial statements and significant
notes thereto” on page 18 of the attached materials.
(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, 2022

124,963,596 shares

As of May 31, 2021

124,734,580 sharesb. Number of treasury shares at the end of the period
As of May 31, 2022

736 shares

As of May 31, 2021

160 sharesc. Average number of outstanding shares during the period
Fiscal year ended May 31, 2022

124,841,631 sharesFiscal year ended May 31, 2021

124,590,310 shares

Note: The Company implemented a stock split of common shares at a ratio of 4-for-1 on December 1, 2021.
Therefore, total number of issued shares at the end of the period, number of treasury shares at the end of theperiod, and average number of outstanding shares during the period are calculated on the assumption thatsaid 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, 2022 (from June 1, 2021 to May
31, 2022)(1) Non-consolidated operating results
Net sales
Fiscal year ended
May 31, 2022
May 31, 2021

Operating profit

Millions of yen

20,057
16,042% Millions of yen

25.0
20.1

Basic earnings per
share
Fiscal year ended
May 31, 2022
May 31, 2021

(Percentages indicate year-on-year changes.)

683
765

Ordinary profit% Millions of yen(10.7)
0.9

1,651
684

Profit% Millions of yen

141.3
41.4

1,429
490

%

191.4
26.3

Diluted earnings per
share

Yen

Yen

11.45
3.94

11.28
3.88

Note: The Company implemented a stock split of common shares at a ratio of 4-for-1 on December 1, 2021. Therefore,
basic earnings per share and diluted 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) Non-consolidated financial position
Total assets
As of
May 31, 2022
May 31, 2021

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

27,202
24,61013,12812,93347.7
52.3

105.06103.68Reference:

EquityAs of May 31, 2022:¥12,986 million
As of May 31, 2021:¥12,867 million
Note: The Company implemented a stock split of common shares at a ratio of 4-for-1 on December 1, 2021. Therefore, net
assets per share are calculated on the assumption that said splitting of shares had been made at the beginning of theprevious fiscal year.

* 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.

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4

Attached Material
Index
1. Qualitative information on consolidated financial results for the fiscal year ended May 31, 2022 .......... 2(1) Explanation of operating results ......................................................................................................... 2(2) Review of financial position............................................................................................................... 6(3) Overview of cash flows ...................................................................................................................... 6(4) Future outlook .................................................................................................................................... 7
2. Basic concept regarding selection of accounting standards ...................................................................... 9
3. Consolidated financial statements and significant notes thereto............................................................. 10(1) Consolidated balance sheet .............................................................................................................. 10(2) Consolidated statement of income and consolidated statement of comprehensive income ............. 12
Consolidated statement of income.................................................................................................... 12
Consolidated statement of comprehensive income .......................................................................... 13(3) Consolidated statement of changes in equity ................................................................................... 14(4) Consolidated statement of cash flows .............................................................................................. 16(5) Notes to consolidated financial statements ....................................................................................... 18
Notes on premise of going concern .................................................................................................. 18
Notes on significant changes in the amount of shareholders’ equity ................................................ 18
Changes in accounting policies ........................................................................................................ 18
Additional information ..................................................................................................................... 18
Segment information ........................................................................................................................ 18
Per share information ....................................................................................................................... 22
Significant events after reporting period .......................................................................................... 23- 1 -Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4

1. Qualitative information on consolidated financial results for the fiscal year ended
May 31, 2022
(1) Explanation of operating results
Under the mission of “Turning encounters into innovation” and the vision of “Become business
infrastructure,” the Group is providing business databases that reshape how people work, leading toencounters with people and companies that become business opportunities by using approaches thatcombine systems that use technology and data input to digitize analog information with cloud software.
Specifically, the Group is developing services to promote digital transformation (DX) for corporate
sales activities, invoicing work, contract work, etc. Moreover, as a result of recent changes to working
styles due to the spread of COVID-19, new ways of thinking toward DX, and greater attention being
attracted to the SaaS (Software as a Service) products, the DX market is forecast to reach ¥5,195.7
billion by 2030 (an increase of ¥3,813.6 billion since 2020) (Note 1.), while the SaaS market in Japan isforecast to reach ¥1,117.8 billion by 2024 (an increase of ¥516.2 billion since 2019) (Note 2.). Service
for sales DX Sansan, provided by the Company, holds 83.1% share (Note 3.) of the B2B business cardmanagement service market, and this market has seen 13-fold expansion from 2013 to 2020 inconjunction with the growth in the Company’s services. In addition, Bill One, an online invoicereceiving solution provided by the Company, captured the number one market share of the online
invoice receiving solution in terms of net sales (Note 4.), a 226.0% increase year on year in the thismarket in FY2021.
Consolidated financial results for the fiscal year ended May 31, 2022 are as follows.
(Millions of yen)

Net sales
Gross profit
Operating profit
Ordinary profit
Profit attributable to owners ofparentFiscal year ended
May 31, 2021

Fiscal year ended
May 31, 2022

YoY change

16,184
14,192736
375

20,42017,904631
968+26.2%+26.2%(14.2)%+158.3%182857+369.7%In the fourth quarter of the fiscal year under review, the Group engaged in strengthening the sales
structure, including strategic hiring, in order to realize continuous growth of net sales. Furthermore, theGroup engaged in initiatives such as enhanced functions for Sansan, Bill One, and Eight, a contact andcareer management app.
As a result, net sales for the fiscal year under review increased 26.2% year on year, gross profit
increased 26.2% year on year, and gross profit margin was same as previous fiscal year at 87.7%, anddespite the negative impact from the COVID-19 pandemic, results were overall solid. On the other
hand, although operating profit decreased 14.2% year on year, this was attributed to the ¥2,013 million
year on year increase in personnel expenses due to the progress in active personnel hiring as well as the¥145 million year on year increase in advertising expenses due to enhanced marketing activities,
resulting in progress being made in the strategy to achieve medium- to long-term growth of net sales. In
addition, ordinary profit increased 158.3% year on year and profit attributable to owners of parent
increased 369.7% year on year. This was mainly the result of recording a gain on sale of investment
securities of ¥979 million in non-operating income, as announced on July 19, 2021.
Notes: 1. Based on Market Edition and Vendor Strategy Edition of 2022 Outlook of the Digital
Transformation Market by Fuji Chimera Research Institute
2. Based on 2020 New Software Business Markets by Fuji Chimera Research Institute
3. Based on Latest Trends in Business Card Management Services in Sales Support DX 2022
(December 2021, survey by Seed Planning, in Japanese)- 2 -Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4

4. Deloitte Tohmatsu MIC Research Institute, “The Present and Future of the Market of Online
Invoice Receiving Solution Expected to Grow at a Staggering Rate” (MIC IT Report, July2022).
Results by segment are as follows.
(i) Sansan/Bill One BusinessThis business segment includes services such as service for sales DX Sansan, and online invoicereceiving solution Bill One.
Results for Sansan/Bill One Business in the fiscal year under review are as follows.
(Millions of yen)
Fiscal year ended
May 31, 2021
(Note 5.)

Fiscal year ended
May 31, 2022

YoY change

14,605
14,51913,811
707
84
1
5,278

18,105
17,214
16,349
865
826
64
5,725

+24.0%+18.6%+18.4%+22.3%+878.1%+4,414.0%
+8.5%

7,744
subscriptions

8,488
subscriptions+9.6%¥162 thousand¥170 thousand

+4.9%

0.63%

0.62%

(0.01 pt.)

20
239
subscriptions

117
853
subscriptions+479.7%¥137 thousand+63.1%

0.49%–

Net sales (Note 6.)
SansanSansan recurring sales
Sansan other sales
Bill One
OthersOperating profit
SansanNumber of subscriptions
Monthly recurring sales per
subscription
Last 12 months average ofmonthly churn rate (Note 7.)
Bill OneMRR (Note 8.)
Number of paid subscriptions
Monthly sales per paid
subscription
Last 12 months average ofmonthly churn rate (Note 7.)¥84 thousand–+256.9%Notes: 5. Figures other than net sales and operating profit for the fiscal year ended May 31, 2021
are exempt from audit conducted by an audit corporation.
6. The sum of sales to external customers and intersegment sales or transfers
7. Ratio of decrease in monthly fees associated with subscription cancellations to totalmonthly fees for existing subscriptions for each service.
8. Monthly Recurring Revenue
a. Sansan
The Company revamped the product Sansan, a B2B business card-based contact management
service, based on the concept of “The database to power your sales” to create Sansan, a service
for sales DX to further expand the number of Sansan subscriptions and the monthly sales per- 3 -Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4

subscription. Specifically, apart from a corporate database that allows users to view over 1
million pieces of company information on Sansan, the Company engaged in developing
functions able to store and visualize contact information not only from business cards but alsoemail signatures, etc. in preparation for usage to commence in the first quarter of the fiscal year
ending May 31, 2023. By combining this contact information with a corporate database,companies using Sansan can build custom databases that also include information forcompanies with which they have no current contacts. While the spread of COVID-19
negatively affected the acquisition of new subscriptions, we succeeded in strengthening oursales system and steadily acquired new customers among medium and large enterprises. As aresult, the number of Sansan subscriptions increased 9.6% year on year and the monthly
recurring sales per subscription increased 4.9% year on year. Furthermore, as a result ofcarrying out ongoing initiatives to expand use among existing customers, the last 12 months
average of monthly churn rate was 0.62%, a decrease of 0.01 points year on year, maintaining a
low churn rate.
As a result, net sales in Sansan increased 18.6% year on year, of which recurring sales (fixedrevenue) was up 18.4% year on year and other sales was up 22.3% year on year.
b. Bill One
Due to efforts such as strengthening our sales system through measures including personnel
hiring and enhancing functions for continued high growth of Bill One we made steady progressin acquiring new subscriptions from medium and large enterprises, resulting in the 256.9% year
on year increase in the number of paid subscriptions, and the 63.1% year on year increase inmonthly sales per paid subscription.
As a result, net sales in Bill One increased 878.1% year on year. In addition, in May 2022,
MRR was up 479.7% year on year and ARR (Note 9.) was ¥1,407 million, allowing theCompany to substantially exceed its goal of ARR of ¥1.0 billion.
Note:

9. Annual Recurring Revenuec. Others
The Group focused on the launch of Contract One, a cloud-based contract management
solution, etc., utilizing the strengths, knowledge, know-how, etc. cultivated through existing
services.
As a result, net sales of others was up 4,414.0% year on year.
As a result, net sales in Sansan/Bill One Business increased 24.0% year on year. Segment profit
increased 8.5% year on year, mainly due to increased investment to realize further growth of BillOne.
(ii) Eight Business
Apart from Eight, a contact and career management app, this business segment includes thetranscribed media service provided by logmi, Inc. (hereinafter, “logmi”).
Results for Eight Business in the fiscal year under review are as follows.

- 4 -Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4(Millions of yen)
Fiscal year ended
May 31, 2021
(Note 6.)

Fiscal year ended
May 31, 2022

YoY change

1,582
296
1,286
(754)

2,213
286
1,927
(386)

+39.9%(3.6)%+49.9%–

2.92 million
people2,253
subscriptions

3.10 million
people2,819
subscriptions+0.18 million
peopleNet sales (Note 7.)
B2C services
B2B services
Operating profit
Eight
Number of Eight users (Note10.)
Number of subscriptions for
Eight Team

+25.1%

Note: 10. Number of confirmed users who registered their business card to their profile after
downloading the application
In April 2022, the business card management app Eight was revamped into a product based on theconcept of “Manage your contacts and your career.” Specifically, by implementing a tab function
for career improvement that collect information useful for career formation on Eight, users are able
to obtain information in an efficient manner.
a. B2C services
Due to the efforts to enhance service functions, etc., the number of Eight users totaled 3.10
million, an increase of 0.18 million year on year, but net sales from B2C services decreased
3.6% year on year.
b. B2B services
Due to efforts to strengthen monetization of the various B2B services, including holding the
2nd “Climbers” major business event for the fiscal year under review in May 2022, net sales
from B2B services increased 49.9% year on year. In addition, the number of subscriptions for
Eight Team increased 25.1% year on year.
As a result, net sales in Eight Business increased 39.9% year on year, and segment loss wascurtailed by ¥367 million year on year.

- 5 -Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4(2) Review of financial position

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

As of May 31, 2021

As of May 31, 2022

24,31011,725
12,58424,31026,292
14,19912,093
26,292(Millions of yen)
Change fromprevious fiscal
year-end
1,982
2,473
(491)
1,982

AssetsTotal assets at the end of the fiscal year under review were ¥26,292 million, up ¥1,982 million from theend of the previous fiscal year. This was primarily due to an increase of ¥3,043 million in cash anddeposits, an increase of ¥185 million in accounts receivable - trade, and a decrease of ¥2,082 million
from sale of investment securities.
Liabilities
Total liabilities at the end of the fiscal year under review were ¥14,199 million, up ¥2,473 million fromthe end of the previous fiscal year. This was primarily due to an increase of ¥1,668 million in new longterm borrowings, an increase of ¥1,479 million in advances received from receiving a lump-sum
payment of contract term fees from customers, a decrease of ¥608 million in current portion of longterm borrowings, a decrease of ¥200 million in short-term borrowings and a decrease of ¥571 million
in deferred tax liabilities.
Net assets
Net assets at the end of the fiscal year under review were ¥12,093 million, down ¥491 million from theend of the previous fiscal year. This was primarily due to a decrease of ¥1,536 million in valuationdifference on available-for-sale securities as a result of the year-end valuation of investment securities,
an increase of ¥113 million in capital as a result of exercise of share acquisition rights and an increaseof ¥857 million in retained earnings due to recording of profit attributable to owners of parent.
(3) Overview of cash flows(Millions of yen)

Cash flows from operating
activities
Cash flows from investing
activities
Cash flows from financing
activities
Cash and cash equivalents at
end of period

Fiscal year ended
May 31, 2021

Fiscal year ended
May 31, 2022

YoY change

3,011

3,123

111

(551)

(1,014)(463)(2,902)

909

3,811

12,223

15,245

3,021

Cash and cash equivalents (hereinafter “capital”) at the end of the fiscal year under review totaled¥15,245 million, an increase of ¥3,021 million compared to the previous fiscal year (up 24.7% year onyear). This increase includes the effect of ¥3 million due to exchange fluctuations on capital.
- 6 -Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4

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 ¥3,123 million (¥3,011 million provided
in the previous fiscal year). The main reasons for the increase in capital were recognition of profit
before income taxes of ¥908 million, recognition of depreciation, non-cash expense, of ¥768 million,
recognition of share of loss of entities accounted for using equity method of ¥609 million, and anincrease in advances received of ¥1,479 million and the main factors for the decrease in capital wererecognition of gain on sale of investment securities of ¥979 million, and an increase in trade receivablesof ¥183 million.
Cash flows from investing activities
The amount of capital used in investing activities totaled ¥1,014 million (¥551 million used in theprevious fiscal year). This was primarily due to purchase of investment securities of ¥2,555 million,
purchase of shares of subsidiaries and associates of ¥500 million, purchase of intangible assets of ¥453
million, and purchase of property, plant and equipment of ¥468 million and proceeds from sale ofinvestment securities of ¥3,224 million.
Cash flows from financing activities
The amount of capital provided by financing activities totaled ¥909 million (¥2,902 million used in theprevious fiscal year). This was primarily due to proceeds from long-term borrowings of ¥3,250 million,
proceeds from issuance of shares of ¥209 million, a net decline in short-term borrowings of ¥200
million and repayments of long-term borrowings of ¥2,190 million.
(4) Future outlook
As the medium-term targets from the fiscal year ending May 31, 2023 to the fiscal year ending May 31,
2025, the Company aims for growth in both net sales and profit.
First, for consolidated net sales, which is the most important management indicator, we aim forcontinuous solid growth in the 20%+ range or higher. Next, as a profit indicator that is emphasized, theCompany uses adjusted operating profit (Note 12.), which excludes share-based payment expenses andexpenses arising from business combinations, and the Company aims to improve adjusted operating
profit margin in each accounting period while making the necessary investments for net sales growth ineach business. For realizing an improvement in profit margin, the Company aims to record operating
profit of ¥10.0 billion or more in total for the Sansan and Bill One services (Note 13.) for the fiscal year
ending May 31, 2025 and record stable adjusted operating profit over the full year in Eight Business.
Note: 12. Adjusted operating profit: operating profit + share-based payment expenses + expenses
arising from business combinations (amortization of goodwill and amortization of
intangible assets)
Note: 13. Total for “Sansan” and “Bill One” in Sansan/Bill One Business, excluding the “Others”
category- 7 -Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4

Consolidated earnings forecasts for the fiscal year ending May 31, 2023 are as follows.
(Millions of yen)
Fiscal year ended
May 31, 2022

Net sales

20,420Sansan/Bill One Business

18,105Eight Business

2,213

Adjusted operating profit
Adjusted operating profit
margin730
3.6%

Fiscal year ending
May 31, 2023
25,117
to25,764
21,998to22,632
2,900
to
3,010
917
to
1,288
3.7%
to
5.0%

YoY change+23.0%
to+26.2%+21.5%
to+25.0%+31.0%
to+36.0%+25.5%
to+76.3%+0.1 pt.
to+1.4 pt.

Consolidated net sales are expected to increase 23.0% to 26.2% year on year due to the effects ofrevamping the “Sansan” and “Eight” products and the expected continued high growth of “Bill One.”Net sales in Sansan/Bill One Business are expected to increase 21.5% to 25.0% year on year and net
sales in Eight Business are expected to increase 31.0% to 36.0% year on year. Because it is difficult toaccurately estimate the impact of revamping the products on financial results and other factors at thispoint in time, the Company has disclosed a range-based outlook for each business.
Although selling, general and administrative expenses are expected to increase as a result of making
investments for growth, the solid growth of net sales is expected to increase adjusted operating profit
by 25.5% to 76.3% year on year, and adjusted operating profit margin is expected to increase 0.1 points
to 1.4 points. In addition, as the main expenses in selling, general and administrative expenses,
personnel expenses are expected to increase approximately 23.7% year on year and advertisingexpenses are expected to increase approximately 6.5% year on year.
For multi-step profit or loss under operating profit or loss, 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 nonoperating profit or loss items.

- 8 -Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4

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

- 9 -Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4

3. Consolidated financial statements and significant notes thereto(1) Consolidated balance sheet(Millions of yen)
As of May 31, 2021
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
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Other
Accumulated depreciation
Other, net
Total 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- 10 -

As of May 31, 2022

12,389
571
469
117
(4)
13,542

15,432
756
478
194
(3)
16,856

825
(405)
419
257
(172)
85
504

1,227
(582)
645
339
(178)
161
806

1,023
185
0
1,209

917
229
0
1,147

8,344
702
–
6
9,053
10,76824,310

6,262
793
416
10
7,481
9,435
26,292

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4(Millions of yen)
As of May 31, 2021
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
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
Deferred tax liabilities
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- 11 -

As of May 31, 2022

195
200
1,085
1,175
154
271
6,719
359
82
10,243

253
–
477
1,081
380
398
8,199
487
229
11,507

879
571
31
1,482
11,725

2,547
–
144
2,691
14,199

6,312
4,053
526
(0)
10,892

6,426
4,023
1,384
(1)
11,832

1,622
1
1,623
65
2
12,58424,310

85
26
112
142
5
12,093
26,292

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Millions of yen)
Fiscal year ended
May 31, 2021
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Subsidy income
Cancellation penalty income
Gain on sale of investment securities
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commission expenses
Foreign exchange losses
Penalty loss on cancellation of rental contracts
Loss on investments in investment partnerships
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on reversal of share acquisition rights
Gain on change in equity
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities
Impairment losses
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent- 12 -

Fiscal year ended
May 31, 2022

16,184
1,992
14,192
13,455736

20,4202,515
17,904
17,272
631

0
57
10
3
32
1
106

0
33
1
–
979
26
1,042

23
25
1
92
12

10
7
9
–
20

285

609

27
468
375

47
705
968

0
–
0

0
105
105

4
–
–
4
370
202
(13)
189
180
(1)
182

16
140
9
165
908
353
(296)
56
852
(5)
857

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4

Consolidated statement of comprehensive income(Millions of yen)
Fiscal year ended
May 31, 2021
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- 13 -

Fiscal year ended
May 31, 2022
180

852

1,622
17
1,639
1,820

(1,536)25(1,510)
(658)

1,821

(652)

(1)

(5)

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4(3) Consolidated statement of changes in equity
Fiscal year ended May 31, 2021
(Millions of yen)
Shareholders’ equity
Capital surplus

6,236

3,977

344

–

10,557Issuance of new shares

76

76

–

–

152

Purchase of treasury shares

–

–

–

(0)

(0)

Profit attributable to ownersof parent

–

–

182

–

182

Net changes in items otherthan shareholders’ equity

–

–

–

–

–

76

76

182

(0)

334

6,312

4,053

526

(0)

10,892

Balance at beginning of period

Retained earnings

Treasury shares

Total shareholders’equityShare capital

Changes during period

Total changes during period
Balance at end of period

Accumulated other comprehensive income
Foreigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive income

Shareacquisitionrights

–

(15)

(15)

10

–

10,552Issuance of new shares

–

–

–

–

–

152

Purchase of treasury shares

–

–

–

–

–

(0)

Profit attributable to ownersof parent

–

–

–

–

–

182

Net changes in items otherthan shareholders’ equity

1,622

17

1,639

55

2

1,697

Total changes during period

1,622

17

1,639

55

2

2,032

Balance at end of period

1,622

1

1,623

65

2

12,584

Valuationdifference on
available-forsale securities
Balance at beginning of period

Non-controlling
Total net assetsinterests

Changes during period- 14 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4

Fiscal year ended May 31, 2022
(Millions of yen)
Shareholders’ equity
Capital surplus

6,312

4,053

526

(0)

10,892

113

113

–

–

226

Purchase of treasury shares

–

–

–

(1)

(1)

Purchase of shares of
consolidated subsidiaries

–

(143)

–

–

(143)

Profit attributable to ownersof parent

–

–

857

–

857

Net changes in items otherthan shareholders’ equity

–

–

–

–

–

Total changes during period

113

(30)

857

(1)

939

Balance at end of period

6,426

4,023

1,384

(1)

11,832

Balance at beginning of period

Retained earnings

Treasury shares

Total shareholders’equityShare capital

Changes during period
Issuance of new shares

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

Foreigncurrencytranslation
adjustment

Total
accumulated
othercomprehensive income

ShareacquisitionrightsNon-controlling
Total net assetsinterests

1,622

1

1,623

65

2

12,584Issuance of new shares

–

–

–

–

–

226

Purchase of treasury shares

–

–

–

–

–

(1)

Purchase of shares of
consolidated subsidiaries

–

–

–

–

–

(143)

Profit attributable to ownersof parent

–

–

–

–

–

857

Net changes in items otherthan shareholders’ equity(1,536)25(1,510)76

3(1,430)(1,536)25(1,510)

76

3

(491)

85

26

112

142

5

12,093

Changes during period

Total changes during period
Balance at end of period- 15 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
May 31, 2021
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Impairment losses
Loss on retirement of non-current assets
Share-based payment expenses
Gain on reversal of share acquisition rights
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on investments in investment partnerships
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on change in equity
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Interest and dividend income
Interest expenses
Commission expenses
Decrease (increase) in trade receivables
Decrease (increase) in prepaid expenses
Decrease (increase) in other assets
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Increase (decrease) in advances received
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities- 16 -

Fiscal year ended
May 31, 2022

370
691
15
–
4
33
(0)
(32)
–
12

908
768
25
9
16
72
(0)
(979)
140
20

285

609

–
1
69
(58)
23
0
(121)
(50)
61
90
620
1,401
(162)
(66)
35
3,224
58
(24)
(246)
3,011

(105)
(1)
127
(34)
10
0
(183)
12
(76)
57
(90)
1,479
131
237
92
3,250
34
(16)
(144)
3,123

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4(Millions of yen)
Fiscal year ended
May 31, 2021
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of shares of subsidiaries and associates
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Payments of leasehold deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares
Proceeds from issuance of share acquisition rights
Purchase of shares of subsidiaries not resulting in change
in scope of consolidation
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
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 17 -

Fiscal year ended
May 31, 2022

(273)
(636)
(336)
1,680
(660)

(468)
(453)
(2,555)
3,224
(500)

(132)

(61)

(186)
(5)
(551)

(202)
2
(1,014)173–(3,220)
152
21

(200)
3,250
(2,190)
209
21

–

(143)

(29)
(2,902)
2(440)
12,663
12,223

(37)
909
3
3,021
12,223
15,245

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4(5) Notes to consolidated financial statements
Notes on premise of going concern
Not applicable.
Notes on significant changes in the amount of shareholders’ equity
Not applicable.
Changes in accounting policies(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.
29, March 31, 2020) and relevant ASBJ regulations effective from the beginning of the current fiscal
year, and it has recognized revenue at the time the control of promised goods or services is transferredto the customer at the amount expected to be received upon exchange of said goods or services.
The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations issubject to the transitional treatment provided for in the proviso to paragraph 84 of the AccountingStandard for Revenue Recognition. The cumulative effect of the retrospective application, assuming the
new accounting policy had been applied to periods prior to the start of the current fiscal year, wasadded to or subtracted from the opening balance of retained earnings of the current fiscal year, and thus
the new accounting policy was applied from such opening balance.
The impact of this change on profit and loss, and the opening balance for retained earnings for thecurrent fiscal year was immaterial.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement
No. 30, July 4, 2019) and relevant ASBJ regulations from the beginning of the current fiscal year, and it
has applied the new accounting policy provided for by the Accounting Standard for Fair Value
Measurement, etc. prospectively in accordance with the transitional measures provided for in paragraph
19 of the Accounting Standard for Fair Value Measurement, and paragraph 44(2) of the “AccountingStandard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019).
The application of the “Accounting Standard for Fair Value Measurement” and relevant ASBJ
regulations has no effect on the consolidated financial statements for the current fiscal year.
Additional information(Accounting estimates associated with the spread of COVID-19)
Regarding the impact of COVID-19, it is difficult to accurately predict when the pandemic will finallyend, etc. As a result, accounting estimates, such as the recoverability of deferred tax assets, were madefor the next fiscal year based on the assumption that a certain economic impact will continue until theend of the fiscal year ending May 31, 2023.
Segment informationa. Segment information
1. Description of reportable segments
The reportable segments used by the Group are components for which discrete financial
information is available, and whose operating results are regularly reviewed by the Board of
Directors, in particular, to make decisions about resources to be allocated to the segments andassess their performance.
- 18 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4

In the operation 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 tworeportable segments of the “Sansan/Bill One Business” and the “Eight Business.”
Descriptions of the services belonging to each segment are stated below.
Reportable segments

Description of services in segment
Provision of “Sansan,” a service for sales DX, “Bill One,” an online invoicereceiving solution, etc.
Provision of “Eight,” a contact and career management app

Sansan/Bill One Business
Eight Business

2. Methods of calculating the amounts of net sales, profit or loss, assets, liabilities, and otheritems for each reportable segment
The accounting method used for operating segments reported is the same as the description in“Matters forming the basis of preparing the consolidated financial statements.”
The profit stated for the reportable segments is a figure based on operating profit.
3. Information on the amounts of net sales, profit or loss, assets, liabilities, and other items foreach reportable segment
Fiscal year ended May 31, 2021
(Millions of yen)Amount in
the quarterly
Adjustments consolidated(Note) 2
financialstatement(Note) 3

Reportable segments

Net sales
Sales to externalcustomers
Intersegment sales ortransfers
Total
Segment profit (loss)
Other items
Depreciation

Others(Note) 1

Sansan/Bill One
Business

Eight
Business

14,605

1,579

16,184–

16,184–

16,184

–

3

3

–

3

(3)

–

14,605

1,582

16,188–16,188(3)

16,184

5,278

(754)

4,524

–

4,524

(3,787)

736

415

17

432

–

432

258

691

Total

Total

Notes: 1. The “Others” category is a business segment that is not included in the reportable segments, and includes
subsidiaries’ businesses.
2. 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.
3. Segment profit (loss) is adjusted with operating profit in the consolidated statement of income.
4. Segment assets and liabilities have not been shown, as information relating to assets and liabilities are notregularly provided to the chief operating decision maker and are not subject to the assessment of performance.
5. Intersegment sales or transfers are based on actual market price.

- 19 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4

Fiscal year ended May 31, 2022
(Millions of yen)Amount in
the quarterly
Adjustments consolidated(Note) 2
financialstatement(Note) 3

Reportable segments

Net sales
Sales to externalcustomers
Intersegment sales ortransfers
Total
Segment profit (loss)
Other items
Depreciation

Others(Note) 1

Sansan/Bill One
Business

Eight
Business

18,1042,204

20,309111

20,420–20,420

1

9

10

15

25

(25)

–

18,105

2,213

20,319126

20,446(25)

20,420

5,725

(386)

5,338

(28)

5,310

(4,678)

631

507

18

525

0

525

242

768

Total

Total

Notes: 1. The “Others” category is a business segment that is not included in the reportable segments, and includes
subsidiaries’ businesses.
2. 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.
3. Segment profit (loss) is adjusted with operating profit in the consolidated statement of income.
4. Segment assets and liabilities have not been shown, as information relating to assets and liabilities are notregularly provided to the chief operating decision maker and are not subject to the assessment of performance.
5. Intersegment sales or transfers are based on actual market price.

4. Matters regarding changes in reportable segments
Effective from the first half of the current fiscal year, the Company has reorganized its business
management system with the aim of optimizing the allocation of resources to each product, inorder to promote the growth of each product. As a result, the former “Sansan Business” hasbeen changed to “Sansan/Bill One Business” as a business that includes multiple products
including “Sansan” and “Bill One.”The segment information of the previous fiscal year is based on the division of the reportablesegment of the current fiscal year.
(Application of accounting standard for revenue recognition, etc.)
As stated in the above changes in accounting policies, effective from the beginning of thecurrent fiscal year, the Company has applied the Accounting Standard for Revenue Recognition
and relevant ASBJ regulations and changed the accounting processing methods related torevenue recognition, resulting in similar changes to the measurement method for profit orlosses in the business segments.
As a result, the effect of this change on the consolidated financial statements for the current
fiscal year is immaterial.
b. Information associated with reportable segments
1. Information for each product or service
This information is omitted because the same information has been presented in Segment
information.

- 20 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4

2. Information for each region(1) Net sales
This has been omitted because net sales to external Japanese customers account for morethan 90% of net sales on the consolidated statement of income.
(2) Property, plant and equipment
This has been omitted because the value of property, plant and equipment in Japanaccounts for more than 90% of the value of property, plant and equipment on the
consolidated balance sheet.
3. Information for each of main customers
This has been omitted because there is no external customer that accounts for 10% or more of
net sales recorded on the consolidated statement of income.
c. Disclosure of impairment losses on non-current assets for each reportable segment
Fiscal year ended May 31, 2021
Not applicable.
Fiscal year ended May 31, 2022
Impairment losses of ¥9 million for corporate expenses not belonging to any reportable segment
were recorded.
d. Amortization and unamortized balance of goodwill for each reportable segment
Fiscal year ended May 31, 2021
(Millions of yen)
Sansan/Bill One
Business

Corporate andeliminations

Eight Business

Amortization of
goodwill

–

15

–

15

Goodwill

–

185

–

185

Total

Fiscal year ended May 31, 2022
(Millions of yen)
Sansan/Bill One
Business

Eight BusinessCorporate andeliminations

Amortization of
goodwill

–

20

5

25

Goodwill

–

165

64

229

Total

e. Information about gain on bargain purchase for each reportable segment
Not applicable.

- 21 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4

Per share information
Fiscal year ended May 31, 2021
(from June 1, 2020 to May 31, 2021)
Net assets per share(Yen)
Fiscal year ended May 31, 2022
(from June 1, 2021 to May 31, 2022)

100.8996.78

Basic earnings per share

1.47

6.87

Diluted earnings per share

1.45

6.77

Notes: 1. The Company implemented a stock split of common shares at a ratio of 4-for-1 on December 1, 2021.
Therefore, net assets per share, basic earnings per share and diluted earnings per share are calculated on theassumption that said splitting of shares had been made at the beginning of the previous fiscal year.
2. Basis for calculation of basic earnings per share and diluted earnings per share is as follows:
Fiscal year ended May 31, 2021
(from June 1, 2020 to May 31, 2021)

Fiscal year ended May 31, 2022
(from June 1, 2021 to May 31, 2022)

Basic earnings per share
Profit attributable to owners ofparent(Millions of yen)

182

Amounts not attributable tocommon shareholders(Millions of yen)–

Profit attributable to owners ofparent related to common shares(Millions of yen)

857

182

857

124,590,310

124,841,631

Adjustments stated for profit
attributable to owners of parent(Millions of yen)––

Increase in number of commonshares(Shares)

1,795,463

1,896,164[Of which share acquisition rights](Shares)[1,795,463][1,896,164]

Overview of dilutive shares that are
not included in the calculation ofdiluted earnings per share as they
have no dilutive effects–

Average number of common shares
outstanding during the period(Shares)

Diluted earnings per share- 22 -

Stock options 2021
(the 6th share acquisition rights)
200 units

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4

Significant events after reporting period
Issuance of the 7th share acquisition rights
At the meeting of the Board of Directors held on July 14, 2022, the Company resolved to issue the 7th
Share Acquisition Rights to employees of the Company and employee of the Company’s subsidiary inaccordance with the provisions of Articles 236, 238, and 240 of the Companies Act.
7th Share Acquisition Rights
Number of share acquisition rights

6,559 units

Class and number of shares to be acquired upon Common shares of the Company, 655,900 shares
exercise of the share acquisition rights(100 shares per one unit acquisition right)
Exercise price of share acquisition rights¥102,100 per one unit acquisition rightIssuance price and additional paid-in capital in
the event of issuance of shares upon exercise ofshare acquisition rights

Issuance price: ¥1,021 per one share
Additional paid-in capital: ¥511 per one share

Allotment date of share acquisition rights

July 29, 2022

Persons subject to allotment of share acquisition 138 employees of the Company
rights1 employee of the Company’s subsidiary
Exercise period of share acquisition rights

From July 15, 2024 to July 14, 2032

Exercise conditions of share acquisition rights**

1. Persons who have received an allotment of the share acquisition rights (the “Share Acquisition Rights Holder”)
may exercise their share acquisition rights if the closing price of the Company’s common share in regular
trading on the Tokyo Stock Exchange on a specific day during the period from the allotment date of the shareacquisition rights to the end of the period of exercise of the rights (July 14, 2032) exceeds the ¥2,344
However, in the event of a share split or reverse share split after the date of allotment, the share price shall be
adjusted according to the following formula (fractions of a yen shall be rounded up to the nearest yen).
1
Share price after
Share price before×＝
adjustment
adjustment
Split (or Reverse split) ratio
2. The Share Acquisition Rights Holders are required to have a position in the Company or a subsidiary andassociate of the Company as Director, Audit & Supervisory Board Member or employee at the time of
exercising the share acquisition rights. However, this shall not apply in the event of resignation due to the
expiration of the term of office, mandatory retirement, or when a justifiable reason is acknowledged at a
meeting of the Board of Directors.
3. In the event the Share Acquisition Rights Holder dies, inheritance shall not be recognized.
4. Pledging of share acquisition rights, or the creation of security interests shall not be permitted.
5. The share acquisition rights may not be exercised if, in so doing, the total number of the Company’s issued
shares at that time would exceed the total number of authorized shares.
6. It shall not be possible to exercise fractions less than one unit of the share acquisition rights.

- 23 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q4

Issuance of the 8th share acquisition rights (compensatory stock options)
At the meeting of the Board of Directors held on July 14, 2022, the Company resolved to issue the 8th
Share Acquisition Rights to Directors and Executive Officers of the Company in accordance with theprovisions of Articles 236, 238, and 240 of the Companies Act.
8th Share Acquisition Rights
Number of share acquisition rights

1813 units

Class and number of shares to be acquired upon Common shares of the Company, 181,300 shares
exercise of the share acquisition rights(100 shares per one unit acquisition right)
Issuance price of share acquisition rights¥12,500 per one unit acquisition right

Exercise price of share acquisition rights¥102,100 per one unit acquisition rightIssuance price and additional paid-in capital in
the event of issuance of shares upon exercise ofshare acquisition rights

Issuance price: ¥1,021 per one share
Additional paid-in capital: ¥511 per one share

Allotment date of share acquisition rights

September 2, 2022

Persons subject to allotment of share acquisition 5 Directors of the Company
rights15 Executive Officers of the Company
Exercise period of share acquisition rights

From September 1, 2023 to September 1, 2032

Exercise conditions of share acquisition rights**

1. Persons who have received an allotment of the share acquisition rights (the “Share Acquisition Rights Holder”)
may exercise their share acquisition rights only if the amount of net sales in the Company’s consolidated
statement of income for the fiscal year ending May 31, 2023 has exceeded ¥25,265 million. In determining thenet sales amount, there are events, such as changes in the applicable accounting standards and the acquisitionsof companies, which can have a major impact on the business results of the Company. In the event that theBoard of Directors determines that it is not appropriate to make a judgment based on actual figures, theCompany will eliminate the effect of the acquisition of a company, etc. within a reasonable range, and it shall bedeemed possible to adjust the actual figures used for judgment. In addition, in the event of significant changes in
the concept of items to be referred to, due to the application of international financial reporting standards,
changes in the fiscal year end, etc., the indicators to be referred to shall be determined by the Company’s Boardof Directors.
2. The Share Acquisition Rights Holders are required to have a position in the Company or a subsidiary andassociate of the Company as Director, Audit & Supervisory Board Member or employee at the time of
exercising the share acquisition rights. However, this shall not apply in the event of resignation due to the
expiration of the term of office, mandatory retirement, or when a justifiable reason is acknowledged at a
meeting of the Board of Directors.
3. In the event the Share Acquisition Rights Holder dies, inheritance shall not be recognized.
4. Pledging of share acquisition rights, or the creation of security interests shall not be permitted.
5. The share acquisition rights may not be exercised if, in so doing, the total number of the Company’s issued
shares at that time would exceed the total number of authorized shares.
6. It shall not be possible to exercise fractions less than one unit of the share acquisition rights.

- 24 -