Note:

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

April 13, 2023

Financial Results for FY2022 Q3Company name: Sansan, Inc.
Listing:
Tokyo Stock Exchange
Securities code:
4443
URL:
https://www.corp-sansan.com/
Representative:
Chikahiro Terada, Representative Director & CEO
Inquiries:
Muneyuki Hashimoto, Director, Executive Officer, CFO
TEL:+81-3-6758-0033
Scheduled date to file quarterly securities report:
April 13, 2023
Scheduled date to commence dividend payment:–
Preparation of supplementary materials on financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors andanalysts)(Millions of yen with fractional amounts rounded down, unless otherwise noted)

1. Consolidated financial results for the first nine months of the fiscal year ending May 31, 2023
(from June 1, 2022 to February 28, 2023)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended

Millions ofyen%

February 28, 2023
February 28, 2022

18,177
14,705

23.6
25.1

Note: Comprehensive income

Nine months ended
February 28, 2023
February 28, 2022

(Percentages indicate year-on-year changes.)

Adjusted
operating profit

Operating profit

Ordinary profit

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

539 129.8
234 (71.5)

501
750

(33.2)
56.7

738
575

28.4
39.0

%

760 148.4
306 (64.2)

Nine months ended February 28, 2023: ¥822 million [–%]
Nine months ended February 28, 2022: ¥(1,095) million[–%]Basic earnings per
share

Diluted earnings
per share

Yen

Yen

5.91
4.61

5.84
4.53

Note: Sansan, Inc. (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 splittingof shares had been made at the beginning of the previous fiscal year.

(2) Consolidated financial position
Total assets
As ofFebruary 28, 2023
May 31, 2022
Reference:

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

27,311
26,292

13,841
12,09349.3
45.4

EquityAs of February 28, 2023:
As of May 31, 2022:¥13,469 million¥11,944 million

2. Cash dividends
Annual dividends
First quarter-end

Second quarter-end Third quarter-end

Yen

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

Yen

Yen

–

0.00

–

–

0.00

–

Fiscal year ending
May 31, 2023
(Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: None

Fiscal year-end

Total

Yen

Yen

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

Notes: 1. Revisions to the earnings forecasts most recently announced: None
2. Although the Company is expecting to record a surplus in both ordinary profit and profit attributable to owners ofparent, it is difficult to make a precise forecast. Accordingly, the Company will refrain from disclosing a concrete
forecast at this point in time.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Application of specific accounting for preparing the quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
b. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement: None
(4) Number of issued shares (Common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of February 28, 2023

125,343,056 shares

As of May 31, 2022

124,963,596 sharesb. Number of treasury shares at the end of the period
As of February 28, 2023

871 shares

As of May 31, 2022

736 sharesc. Average number of outstanding shares during the period
For the nine months ended February 28, 2023

125,095,318 shares

For the nine months ended February 28, 2022

124,807,577 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
Forward-looking statements, including the earnings forecasts stated in these materials, are based on
information currently available to the Company and certain assumptions deemed reasonable. Results
may differ materially from the forecasts due to various factors.

Sansan, Inc. (TSE 4443)
Financial Results for FY2022 Q3

Attached Material
Index
1. Qualitative information on quarterly financial results .............................................................................. 2(1) Explanation of operating results ............................................................................................................ 2(2) Explanation of financial position ........................................................................................................... 5(3) Explanation of consolidated earnings forecasts and other forward-looking statements ........................ 6
2. Quarterly consolidated financial statements and significant notes thereto ............................................... 7(1) Quarterly consolidated balance sheet .................................................................................................... 7(2) Quarterly consolidated statements of income and comprehensive income ........................................... 9
Quarterly consolidated statement of income ......................................................................................... 9
Quarterly consolidated statement of comprehensive income .............................................................. 10(3) Notes to the quarterly consolidated financial statements..................................................................... 11(Notes on premise of going concern)................................................................................................... 11(Notes on significant changes in the amount of shareholders’ equity) ................................................ 11(Changes in scope of consolidation or scope of application of equity method) .................................. 11(Changes in accounting policies) ......................................................................................................... 11(Segment information, etc.) ................................................................................................................. 12(Significant events after reporting period) ........................................................................................... 14- 1 -Sansan, Inc. (TSE 4443)
Financial Results for FY2022 Q3

1. Qualitative information on quarterly financial results(1) Explanation of operating results
Under the mission of “Turning encounters into innovation” and the vision of “Become business
infrastructure,” the Company group (the “Group”) is providing cloud-based solutions that promote
digital transformation (DX) and reshape how we work, leading to encounters with people andcompanies that become business opportunities by using approaches that combine systems that use
technology and manpower to digitize analog information with cloud software.
Specifically, the Group is developing solutions to promote DX for corporate sales activities, invoicing
work, contract work, etc. Moreover, as a result of reforming awareness regarding DX, changes toworking styles due to the COVID-19 pandemic, and greater attention being given to SaaS (Software asa Service) products, the DX market in Japan is forecast to reach ¥5,195.7 billion by FY2030 (anincrease of ¥3,813.6 billion since FY2020) (Note 1), while the SaaS market in Japan is forecast to reach¥1,668.1 billion by FY2026 (an increase of ¥579.0 billion since FY2022) (Note 2). A sales DX solution
Sansan, provided by the Company, holds 81.6% share (Note 3) of the B2B business card management
service market, and this market has seen approximately 14-fold expansion from 2013 to 2021 inconjunction with the growth in the Company’s services. In addition, Bill One, a cloud-based invoice
management solution provided by the Company, captured the number one market share of the online
invoice receiving solution in terms of net sales (Note 4), with this market seeing a 226.0% increase year
on year in FY2021.
Consolidated financial results for the first nine months of the fiscal year ending May 31, 2023
(hereinafter, the “period under review”) is as follows.
(Millions of yen)

Net sales
Gross profit
Adjusted operating profit(Note 5)
Ordinary profit
Profit attributable to owners ofparentNine months ended
February 28, 2022

Nine months ended
February 28, 2023

YoY change

14,705
12,973

18,177
15,746+23.6%+21.4%

306

760+148.4%750501(33.2)%

575

738+28.4%For the period under review, the Group engaged in strengthening the sales structure for Sansan and Bill
One, as well as enhancing functions for each service, in order to realize mid-term growth of net sales.
Consequently, results were solid in the period under review with net sales increasing 23.6% year on
year, gross profit increasing 21.4% year on year (a gross profit margin of 86.6%). Adjusted operating
profit increased 148.4% year on year primarily due to increased net sales. On the other hand, ordinary
profit decreased 33.2% year on year, primarily due to the recording of a gain on sale of investment
securities of ¥979 million in non-operating income in the same period of the previous fiscal year. In
addition, profit attributable to owners of parent increased 28.4% year on year, primarily due to therecording of a gain on sale of shares of subsidiaries and associates of ¥619 million in extraordinary
income associated with the transfer of shares of equity method affiliates. In the “Financial Results for
FY2022 Q2” announced on January 13, 2023, the sale of shares of SATORI, Inc., which was an equity
method affiliate, was stated as a significant event after the reporting period, and although the amount of
extraordinary income recorded is in the process of being calculated, ¥188 million in gain on sale ofshares of subsidiaries and associates was recorded in the third quarter of the current fiscal year.
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 2022 New Software Business Markets by Fuji Chimera Research Institute
3. Based on Latest Trends in Business Card Management Services in Sales Support DX 2023
(December 2022, survey by Seed Planning, in Japanese)- 2 -Sansan, Inc. (TSE 4443)
Financial Results for FY2022 Q3

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)
5. Although operating profit was presented previously, from the first quarter of the current
fiscal year, adjusted operating profit, which is the sum of operating profit plus share-based
payment expenses and expenses arising from business combinations (amortization of
goodwill and amortization of intangible assets), is presented instead, because theperformance indicator used for management purposes was changed to an indicator thatshows the regular capacity to generate corporate earnings after deducting expenses related
to share-based payments, which may vary significantly depending on the level of theCompany’s stock price, and expenses that arise from business combinations. Adjusted
operating profit after the change is also presented for the first nine months of the fiscal year
ended May 31, 2022, instead of operating profit.
Results by segment are as follows.
(i) Sansan/Bill One BusinessThis business segment includes services such as sales DX solution Sansan, and cloud-based invoice
management solution Bill One.
Results for Sansan/Bill One Business in the period under review are as follows.
(Millions of yen)
Nine months ended
February 28, 2022

Nine months ended
February 28, 2023

YoY change

13,19912,662
12,062
600
498
38
4,050

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

+23.0%+14.9%+14.3%+27.7%+209.5%+265.9%+28.3%

8,314
subscriptions

8,844
subscriptions+6.4%¥167 thousand¥180 thousand

+7.8%

0.65%

0.46%

(0.19) pts.

90
643
subscriptions

229
1,300
subscriptions+153.0%¥140 thousand¥176 thousand+25.7%

–

0.59%

–

Net sales (Note 6)
SansanSansan recurring sales
Sansan other sales
Bill One
OthersAdjusted operating profit
SansanNumber of subscriptions
Monthly recurring sales per
subscription
Last 12 months average ofmonthly churn rate (Note 7)
Bill OneMRR (Note 8)
Number of paid subscriptions(Note 9)Monthly recurring sales per
paid subscription
Last 12 months average ofmonthly churn rate (Note 7)+102.2%

Notes: 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, changed value for the first nine months of the fiscal year
ended May 31, 2022 due to revision of calculation method- 3 -Sansan, Inc. (TSE 4443)
Financial Results for FY2022 Q3

9. Changed value for the first nine months of the fiscal year ended May 31, 2022 due tothe revision of the timing of collecting the data from the conclusion of the contract tothe start of the service usagea. Sansan
The Group 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 sales
DX solution to further expand the number of Sansan subscriptions and the monthly recurring
sales per subscription, and has worked to add new functions. Specifically, in the first quarter ofthe current fiscal year, apart from allowing users to view over 1 million pieces of company
information on Sansan, the Group installed functions able to store and visualize contact
information not only from business cards but also email signatures, etc. By combining thiscontact information with corporate information, users of Sansan can build custom databasesthat also include information for companies with which they have no current contacts. In
addition, in the second quarter, backed by these new functions, the Group focused onenhancing its sales capabilities, aiming to acquire new users and to upsell existing users. In thethird quarter, the sales structure was strengthened, especially for the acquisition of new
subscriptions from medium and large enterprises.
Consequently, the number of subscriptions for Sansan increased 6.4% year on year, monthly
recurring sales per paid subscription increased 7.8% year on year, as a result of carrying out
efforts to improve convenience for existing customers through product revamp, the last 12
months average of monthly churn rate was 0.46%, a decrease of 0.19 points year on year.
As a result, net sales in Sansan increased 14.9% year on year, of which recurring sales (fixedrevenue) was up 14.3% year on year and other sales was up 27.7% year on year.
b. Bill One
Because of efforts such as strengthening the sales structure through measures including
personnel hiring and enhancing service functions for continued high growth of Bill One, inFebruary 2023, MRR was up 153.0% year on year and ARR (Note 10) was ¥2,748 million. In
addition, steady progress in acquiring new subscriptions mainly from medium and large
enterprises resulted in the increase of number of paid subscriptions, up 102.2% year on year,
and the increase of monthly recurring sales per paid subscription, up 25.7% year on year.
As a result, net sales in Bill One increased 209.5% year on year. The Group is aiming for ARR
of at least ¥3.0 billion in May 2023.
Note:

10. Annual Recurring Revenuec. Others
The Group focused on the launch of Contract One, a contract DX solution, etc., utilizing thestrengths, knowledge, know-how, etc. cultivated through existing services.
As a result, net sales of others was up 265.9% year on year.
As a result of these efforts, net sales increased 23.0% year on year and adjusted operating profit
increased 28.3% year on year in Sansan/Bill One Business.
(ii) Eight BusinessThis business segment includes Eight, a contact and career management app, as well as the event
transcription service logmi series.
- 4 -Sansan, Inc. (TSE 4443)
Financial Results for FY2022 Q3

Results for Eight Business in the period under review are as follows.
(Millions of yen)
Nine months ended
February 28, 2022

Nine months ended
February 28, 2023

YoY change

1,430
213
1,217
(374)

1,848
225
1,623
(206)

+29.2%+5.5%+33.4%–

3.05 million
people2,621
subscriptions

3.24 million
people3,398
subscriptions+0.19 million
peopleNet sales (Note 11)
B2C services
B2B services
Adjusted operating profit
Eight
Number of Eight users (Note12)
Number of subscriptions for
Eight Team

+29.6%

Notes: 11. The sum of sales to external customers and intersegment sales or transfers
12. Number of confirmed users who registered their business card to their profile after
downloading the app
a. B2C services
In light of the normalization of business due to the ending of the COVID-19 pandemic, thenumber of Eight users totaled 3.24 million, a steady increase of 0.19 million year on year, andnet sales from B2C services increased 5.5% year on year.
b. B2B services
The Group worked on strengthening monetization of the various B2B services. As a result, net
sales from B2B services increased 33.4% year on year, and the number of Eight Team
subscriptions increased 29.6% year on year.
As a result of these efforts, net sales in Eight Business increased 29.2% year on year, and adjusted
operating loss was curtailed by ¥168 million year on year.
(2) Explanation of financial position

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

As of May 31, 2022

As ofFebruary 28, 2023

26,292
14,19912,093
26,292

27,311
13,47013,841
27,311(Millions of yen)
Change fromprevious fiscal
year-end
1,018
(728)
1,747
1,018

AssetsTotal assets at the end of the third quarter of the fiscal year ending May 31, 2023 were ¥27,311 million,up ¥1,018 million from the end of the previous fiscal year. This was primarily due to an increase of¥1,908 million in cash and deposits, an increase of ¥302 million in prepaid expenses, and a decrease of¥1,515 million in investment securities.
- 5 -Sansan, Inc. (TSE 4443)
Financial Results for FY2022 Q3

Liabilities
Total liabilities at the end of the quarter under review were ¥13,470 million, down ¥728 million fromthe end of the previous fiscal year. This was primarily due to a decrease of ¥302 million in accounts
payable - other, a decrease of ¥513 million in advances received from receiving a lump-sum paymentof contract term fees from customers, and an increase of ¥426 million in long-term borrowings.
Net assets
Net assets at the end of the quarter under review were ¥13,841 million, up ¥1,747 million from the endof the previous fiscal year. This was primarily due to an increase of ¥127 million both in share capitaland capital surplus as a result of exercise of stock options, an increase of ¥62 million in valuationdifference on available-for-sale securities, and an increase of ¥1,191 million in retained earnings due tothe recording of profit attributable to owners of parent and change in scope of equity method.
(3) Explanation of consolidated earnings forecasts and other forward-looking statements
The forecasts of consolidated financial results for the fiscal year ending May 31, 2023 have notchanged from the forecast announced on July 14, 2022.

- 6 -Sansan, Inc. (TSE 4443)
Financial Results for FY2022 Q3

2. Quarterly consolidated financial statements and significant notes thereto(1) Quarterly consolidated balance sheet(Millions of yen)
As of May 31, 2022
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Software
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Leasehold deposits
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets- 7 -As of February 28, 2023

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

17,340
676
780
184
(5)
18,977

806

774

917
229
0
1,147

873
209
0
1,083

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

4,746
884
332
513
6,476
8,334
27,311

Sansan, Inc. (TSE 4443)
Financial Results for FY2022 Q3(Millions of yen)
As of May 31, 2022
Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Advances received
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets- 8 -As of February 28, 2023

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

233
566
779
201
320
7,685
288
205
10,282

2,547
144
2,691
14,199

2,973
214
3,188
13,470

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

6,553
4,150
2,576
(2)
13,277

85
26
112
142
5
12,093
26,292

147
44
192
361
9
13,841
27,311

Sansan, Inc. (TSE 4443)
Financial Results for FY2022 Q3(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statement of income(Millions of yen)
Nine months ended
February 28, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest and dividend income
Cancellation penalty income
Subsidy income
Gain on sale of investment securities
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Commission expenses
Share of loss of entities accounted for using equity
methodLoss on investments in investment partnerships
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on reversal of share acquisition rights
Gain on sale of shares of subsidiaries and associates
Gain on change in equity
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent- 9 -Nine months ended
February 28, 2023

14,705
1,731
12,973
12,739234

18,177
2,431
15,746
15,207
539

16
2
1
979
24
1,024

3
–
11
291
16
322

7
1
6

9
12
6

462

287

16
13
508
750

28
15
360
501

0
–
105
105

0
619
–
620

6
9
113
129
727
221
(62)
158
568
(6)
575

26
–
–
26
1,094
292
59
351
742
3
738

Sansan, Inc. (TSE 4443)
Financial Results for FY2022 Q3

Quarterly consolidated statement of comprehensive income(Millions of yen)
Nine months ended
February 28, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 10 -

Nine months ended
February 28, 2023
568

742

(1,670)5(1,664)(1,095)

62
17
79
822

(1,089)

818

(6)

3

Sansan, Inc. (TSE 4443)
Financial Results for FY2022 Q3(3) Notes to the quarterly consolidated financial statements(Notes on premise of going concern)
Not applicable.
(Notes on significant changes in the amount of shareholders’ equity)
Not applicable.
(Changes in scope of consolidation or scope of application of equity method)
In the third quarter of the fiscal year ending May 31, 2023, the Company sold a portion of the shares itheld of SATORI, Inc. (“SATORI”), which was an equity method affiliate. As a result, SATORI was
excluded from the scope of application of equity method.
(Changes in accounting policies)
The Company has applied the “Implementation Guidance on Accounting Standard for Fair Value
Measurement” (ASBJ Guidance No. 31, June 17, 2021) effective from the beginning of the first quarterof the current fiscal year, and it has applied the new accounting policy provided for by the
Implementation Guidance on Accounting Standard for Fair Value Measurement prospectively inaccordance with the transitional measures provided for in paragraph 27(2) of the Implementation
Guidance on Accounting Standard for Fair Value Measurement.
The application of the “Implementation Guidance on Accounting Standard for Fair Value
Measurement” has no effect on the quarterly consolidated financial statements for the nine months
ended February 28, 2023.

- 11 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2022 Q3(Segment information, etc.)[Segment information]
Ⅰ

First nine months of the fiscal year ended May 31, 2022 (from June 1, 2021 to February 28,
2022)
1. Information on the amount of sales and profit (loss) for each reportable segment(Millions of yen)
Reportable segments
Others(Note) 1

Sansan/Bill One
Business

Eight
Business

13,198

1,427

14,62678

14,705

1

2

3

1

5

13,1991,430

14,63080

14,710

4,050

(374)

3,675

(14)

3,661

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

Total

Total

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

Eight
Business

Adjustments

Others(Note)

the quarterly
consolidated
financialstatement

Segment profit (loss)

4,050

(374)

(14)

(3,355)306

Share-based payment
expenses

21

6

–

24

52

–

15

4

–

19

4,029

(396)

(18)

(3,379)234

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

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

- 12 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2022 Q3

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

Sansan/Bill One
Business

Eight
Business

16,2291,847

18,077100

18,177

2

1

3

45

48

16,232

1,848

18,080145

18,226

5,197

(206)

4,990

(28)

4,962

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

Total

Total

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

Eight
Business

Adjustments(Note)

Othersthe quarterly
consolidated
financialstatement

Segment profit (loss)

5,197

(206)

(28)

(4,202)760

Share-based payment
expenses

82

30

–

87

200

–

15

5

–

20

5,114

(252)

(33)

(4,290)539

Amortization of
goodwill andamortization of
intangible assets
Adjusted operating
profit (loss)

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

2. Matters regarding changes in reportable segments(Change in the method of measurement of profit (loss) of reportable segments)
Previously, segment profit (loss) was shown as operating profit (loss). However, from the firstquarter of the current fiscal year, this was changed so that segment profit (loss) is shown as
adjusted operating profit (loss), which is the sum of operating profit (loss) plus share-based
payment expenses and expenses arising from business combinations (amortization of goodwill
and amortization of intangible assets), because the performance indicator used for management
purposes was changed to an indicator that shows the regular capacity to generate corporate
earnings after deducting expenses related to share-based payments, which may varysignificantly depending on the level of the Company’s stock price, and expenses that arise frombusiness combinations.
Segment profit (loss) for the first nine months of the fiscal year ended May 31, 2022 is also
shown with the adjusted operating profit (loss) after the change.
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Sansan, Inc. (TSE 4443)
Financial Results for FY2022 Q3(Significant events after reporting period)(Addition of consolidated subsidiary at equity method affiliate through acquisition of shares)
The Company resolved at the Board of Directors Meeting held on February 14, 2023 to undertake athird-party allotment of shares of CREATIVE SURVEY INC., which is an equity method affiliate of
the Company. The payment was completed on March 1, 2023, and the said company became aconsolidated subsidiary on the same date.
Outline of business combination(1) Name of the acquired company and details of the acquired businessCompany name:
Description of business:

CREATIVE SURVEY INC.
Planning, development, operation and sale of online
survey and communication platform “CREATIVESURVEY”(2) Main reason of the business combination
CREATIVE SURVEY INC. provides its online survey and research tool “CREATIVE SURVEY”
mainly to enterprises. By making the said company a consolidated subsidiary, the Company aims
to further promote the business of the said company, which is growing steadily, and enhance thecorporate value of the said company and the Group.
(3) Date of the business combination
March 1, 2023 (date of acquisition of shares)(4) Legal form of the business combination
Acquisition of shares through a third-party allotment(5) Name of entity after the business combination
Unchanged.
(6) Percentage of voting rights acquired
Percentage of voting rights held just before the acquisition of shares

40.00%

Percentage of additional voting rights acquired by the acquisition of shares

23.08%

Percentage of voting rights after the acquisition

63.08%(7) Main basis for determining acquiring company
The Company acquired the shares in consideration for cash.

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Sansan, Inc. (TSE 4443)
Financial Results for FY2022 Q3(8) Acquisition cost of acquiree and components thereof by consideration type
Fair value of equity interest held on the date immediately precedingbusiness combination on the date of business combination¥256 million

Consideration for additionally acquired common shares on the date ofbusiness combination¥400 million

Acquisition cost¥656 million(9) Difference between the acquisition cost of the acquired company and the total cost of acquisitions
for each transaction required until acquisition
Not confirmed at this stage.
(10) Details and amounts of main acquisition-related costs
Not confirmed at this stage.
(11) Amount of goodwill, reason for recognition, amortization method and amortization period
Not confirmed at this stage.
(12) Amount and breakdown of assets acquired and liabilities assumed as of the date of the businesscombination
Not confirmed at this stage.

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