Presentation Materials

for FY2023 Q3
Sansan, Inc., April 11, 2024

Disclaimer

In preparing these materials, Sansan, Inc. (the “Company,” “we,” “us,” or “our”) relies upon and assumes the accuracy and completeness of all information
available to us. However, the Company makes no representations or warranties of any kind, expresses or implies, about the completeness and accuracy.
This presentation may contain future assumptions, prospects and forecasts based on planning, but these forward-looking statements are based on theinformation that is currently available to us, and on certain assumptions that we assume to be reasonable, but the Company does not promise to achievethese. Major differences may occur between the forecast and the actual performance, including changes in economic conditions, consumer needs and user
preferences; competition with other companies; changes in laws, regulations and others; and a number of other future factors. Therefore, the actual
performance announced may vary depending on these various factors.
In addition, the Company has no obligation to revise or publish the future prospects contained in these materials.

© Sansan, Inc.

1

Contents

1 Financial Results for FY2023 Q3
2 Full-Year Earnings Forecasts for FY2023
Appendix
Sansan Group Overview, Sansan/Bill One Business, Eight Business, Initiatives for Sustainability© Sansan, Inc.

2

Contents

1 Financial Results for FY2023 Q3
2 Full-Year Earnings Forecasts for FY2023© Sansan, Inc.

3

1 Financial Results for FY2023 Q3Highlights of FY2023 Q3 YTD Results
Sansan Group continued strong growth in both sales and adjusted operating profit (1)Net sales up 33.3% YoY, adjusted operating profit up 46.5% YoY, and ARR (2) up 33.4% YoY to ¥31,090 million.
Both net sales and adjusted operating profit progressed steadily against the median of the disclosed ranges in the full-year earnings
forecasts for FY2023.

Sansan, the sales DX solution, continued solid growth
Sansan net sales up 15.2% YoY.
Strengthened sales structure contributed to accelerated growth in new subscriptions.

Bill One, the cloud-based invoice management solution, continued high growth trend
Bill One net sales up 176.6% YoY.
With no major impact after the start of the Invoicing System, the business steadily won new contracts.

(1) Operating profit + share-based payment expenses + expenses arising from business combinations (amortization of goodwill and amortization of intangible assets)(2) Annual recurring revenue© Sansan, Inc.

4

1 Financial Results for FY2023 Q3

Overview of Financial Results
Sansan Group continued its high growth trend with net sales up 33.9% YoY.
The YoY decrease in adjusted operating profit and other line-item profits below it owed to the execution of growth strategies
and the absence of extraordinary income recorded in the same period a year ago.
FY2022Q3 Results

FY2023Q3 Results(Reference) FY2023
YoY(millions of yen, except for per share amounts)

Q3 YTD
Results

YoY

Financial results

Net sales

6,353

8,507

+33.9%

24,234+33.3%

Gross profit

5,546

7,226

+30.3%

20,649+31.1%

Gross profit margin

87.3%

84.9%

-2.4 pts.

85.2%-1.4 pts.

694

590

-15.0%

1,113+46.5%

10.9%

6.9%

-4.0 pts.

4.6%+0.4 pts.

Ordinary profit

615

409

-33.4%

677+35.2%

Profit attributable to owners ofparent587

396-32.5%

539-26.9%

4.69 yen (1)3.15 yen-32.8%

4.30 yen-27.2%

Adjusted operating profit
Adjusted operating profit margin

EPS(1) Revised quarterly EPS based on review of calculation method.
© Sansan, Inc.

5

1 Financial Results for FY2023 Q3

Contributors to Changes in Adjusted Operating Profit
Adjusted operating profit down ¥104 million YoY owing to increases in advertising expenses by ¥335 million and personnel
expenses by ¥851 million resulting from execution of growth strategies. Nevertheless, the continued strong sales allowedadjusted operating profit to progress steadily against the median of the disclosed range in the consolidated earnings
forecasts for FY2023.
Status of Net Sales Through Adjusted Operating Profit(millions of yen)

FY2022 Q3 Results
Net sales
Cost of sales

Advertising expenses

470

Other SG&A expenses

2,279

Adjusted operating profit

For Reference© Sansan, Inc.

Share-based payment expenses
Expenses arising from
Business combinations(amortization of goodwill and intangible assets)

Operating profit

Amount

Rate

6,353

8,507

+2,154+33.9%

807

1,281

+474

+58.8%+851+40.5%+335+71.3%+597+26.2%

2,100

Personnel expenses

YoY

FY2023 Q3 Results

2,952
806
2,876

694

590

-104

-15.0%

78

136

+58

+74.0%

627+21+310.4%

609

426

-183

-30.1%
6

1 Financial Results for FY2023 Q3

Results by Segment
Sansan/Bill One Business increased both net sales adjusted operating profit YoY, while Eight Business increased net sales
and reduced deficit YoY. The negative YoY increase in adjustments for adjusted operating profit mainly reflects increased
headcount associated with the execution of growth strategies.
FY2022

FY2023Q3 Results

Q3 Results(Reference) FY2023
Q3 YTD
Results

YoY(millions of yen)

6,353

8,507

+33.9%

24,234+33.3%

5,715

7,646

+33.8%

21,669+33.5%

613

771+25.8%

2,280+23.3%

Others44

121+173.9%379+160.6%

Adjustments

-19

-30

ー

-95

ー

Consolidated

694

590

-15.0%

1,113+46.5%

2,232

2,381

+6.7%

6,289

+21.0%

Eight Business

-57

-12

ー

-7

ー

Others

-17

-25

ー

-61

ー

-1,463-1,752ー-5,105ーConsolidated
Net sales
Adjusted operating
profit© Sansan, Inc.

YoY

Sansan/Bill One Business
Eight Business

Sansan/Bill One Business

Adjustments

7

1 Financial Results for FY2023 Q3

Sansan / Bill One Business Overview
Sansan showed solid growth and Bill One continued a high growth trend with the segment sales up 33.8% YoY.
Adjusted operating profit up 6.7% YoY despite lower profit margin due to recruitment of sales personnel and strengthening ofmarketing activities.
FY2022

FY2023Q3 Results

Q3 Results(Reference) FY2023
YoY(millions of yen)

5,715

7,646

+33.8%

21,669+33.5%

Sansan

5,015

5,746

+14.6%

16,758+15.2%

4,741

5,445

+14.8%

15,846+15.0%

273

300

+9.9%

911

+18.9%

Bill One

645

1,680

+160.6%

4,269+176.6%

Others54

218+302.6%641+356.9%

2,232

2,381

+6.7%

6,289

+21.0%

39.1%

31.1%

-8.0 pts.

29.0%-3.0 pts.

Sansan other sales

Adjusted operating profit
Adjusted operating
profit margin© Sansan, Inc.

YoY

Net sales

Sansan recurring sales
Sansan/Bill One
Business

Q3 YTD
Results8

1 Financial Results for FY2023 Q3

Sansan: Status of Key Indicators
Steady growth in subscriptions and monthly recurring sales per subscription owing to the strengthened
sales structure.
Churn rate down 0.02 points YoY to 0.44%, maintaining a rate as low as below 1%.
Number of Sansan Subscriptions andMonthly Recurring Sales per Subscription

Sansan Sales
Sansan other sales「Sansan」その他
Sansan recurring sales「Sansan」ストック
Percentage of Sansan recurring sales「Sansan」ストック売上高比率
95.8% 95.3%
94.9% 94.8%
94.7% 94.2% 94.7% 95.0% 94.5%
93.6% 94.0%(millions of yen)

Last 12-Month Average ofMonthly Churn Rate for Sansan (1)Number of
Sansan subscriptions「Sansan」契約件数
Monthly recurring
sales per subscription
契約当たり月次ストック売上高(subscriptions)

9,474¥9,5005,746
5,439 5,572
300
5,245
285
5,015
324
338
4,701 4,831
5,2865,445
4,551
273
5,114
4,227 4,366
250 242 4,741 4,907
264
4,068
200 230
4,451 4,588
4,286
169
4,136
3,899 4,026
Recurring Sales
Up

9,234

8,644
8,488

Q3

FY2021

Q4

Q1

Q2

Q3

FY2022Q4Q1Q2¥167,000¥180,000

Subscriptions
Up

Monthly
Recurring Sales per
Subscription Up

0.46%

0.44%

Q3

Q3

Q3

FY2021

FY2022

FY2023

7.1% YoY 7.2% YoY¥7,500

FY2023

0.65%

8,186
¥8,000Q3
Q3¥193,000

8,314¥7,000

Q2

8,722

8,844

¥8,5007,992

14.8% YoY
Q1

8,969

¥9,0009,067

End- End- End- End- End- End- End- End- End- End- End-

Q1末
Q2末
Q3末
Q4末
Q1末
Q2末
Q3末
Q4末
Q1末
Q2末
Q3末
Q1末
Q3
Q1 Q2末Q2 Q3末Q3 Q4末Q4 Q1末Q1 Q2末Q2 Q3末Q3 Q4末Q4 Q1末Q1 Q2末Q2 Q3末FY2021

FY2022

FY2023(1) Ratio of decreased MRR associated with contract cancellations to total MRR for existing Sansan contracts.
© Sansan, Inc.

9

1 Financial Results for FY2023 Q3

Sansan: Optimizing Pricing Structure
Optimized licensing structure and fee settings, reflecting the market environment and the status of service
enhancements. Operations under the new structure started from February 2024 with an expectation to contributeprimarily to our FY2024 earnings.

LicenseStandard + advanced security

Lite + database

Business cardmanagement

Minimum

LiteStandard planfor SMBs

Standard

Stannard plan forlarge-sized companies

Enterprise

Optimized
fee settings

Initial costs
Optional features© Sansan, Inc.

10

1 Financial Results for FY2023 Q3

Bill One: Status of Key Indicators
ARR exceeded ¥6.8 billion as of February 29, 2024, steadily progressing to achieve the fiscal year-end target of¥7.5 billion. Steady growth in both paid subscriptions and monthly recurring sales per paid subscription,
primarily owing to the strengthened sales structure.
Number of Bill One Paid Subscriptions andMonthly Recurring Sales per Paid Subscription

Bill One MRR

Number of Paid
Subscriptions
Up

100.5% YoY 23.9% YoY

1,581

316
229

Aug.
Nov. Feb.
8月 11月
2月

FY2022

May
5月

Aug.
Nov.
8月 11月Feb.
2月

FY2023¥140,000

End- End- End- End- End- End- End- End- End- End- EndQ1末Q3
Q1 Q2末Q2 Q3末Q3 Q4末Q4 Q1末Q1 Q2末Q2 Q3末Q3 Q4末Q4 Q1末Q1 Q2末Q2 Q3末FY2021

FY2022

FY2023Q3

FY2022Q3

1月3

FY2021

May
5月

643

0.33%

¥176,000

11…

Aug.
Nov. Feb.
8月 11月
2月

280

455

776

¥218,000

9月2

90

140

177

1,300
1,084
930

0.59%

7月2

32

58

116

1,952

5月2

404

3月

¥6,844
million
149.0
YoY
68
億44百万円
149.0%%増

2,304

1月

494

Monthly
Recurring Sales per
Paid Subscription Up

11月

MRR
MRR
前年同期比
Up

9月

ARR
ARR
2024年2月
February
2024

2,607

7月

570

Paid subscriptions(subscriptions) 有料契約件数
Monthly recurring sales per paid subscription
有料契約当たり月次ストック売上高

5月(millions of yen)

Last 12-Month Average of Monthly
Churn Rate for Bill One (1)FY2023(1) Ratio of decreased MRR associated with contract cancellations to total MRR for existing Bill One contracts.
© Sansan, Inc.

11

1 Financial Results for FY2023 Q3

Bill One: Optimizing Pricing Structure
Enhanced licenses and optimized fee settings, reflecting the market environment and the status of service
enhancements. Operations under the new structure started from December 2023 with an expectation to contributeprimarily to our earnings for FY2023 Q4 and beyond.

LicenseRunning costs
License fee based on the number of invoices
to be digitized

Initial costs

Optimized
fee settings

Optional features© Sansan, Inc.

12

1 Financial Results for FY2023 Q3

Bill One: Entry into New Business Field with Enhanced Features
In addition to invoice issuing feature, started providing Bill One Business Card from June 2023.
Going forward, we will pursue further growth by adding new features and expanding into the fintech arena.

May 2020
launchInvoice receivingfeatureFeb. 2022
2022年2月

Feb. 2023

Invoice issuing
請求書feature発行機能

Purchase orderfeatureand more…

Expansion into fintech field

Oct. 2021

Aug. 2022

Journal entry
featurePostal mailingfeatureJune 2023
Launched

Bill One
Business Card
corporate credit card

© Sansan, Inc.

13

1 Financial Results for FY2023 Q3

Eight Business Overview
Eight was up 25.8% YoY in net sales, owing to steady growth of B2B services and solid growth of B2C services.
The negative amount of adjusted operating profit was reduced by the profitability-focused business operation as
well as sales growth.
FY2022

FY2023Q3 Results

Q3 Results(Reference) FY2023
Q3 YTD
Results

YoY(millions of yen)

613

771

+25.8%

2,280+23.3%

B2C services

78

88+12.4%

255+13.2%

B2B services

534

682

+27.8%

2,025+24.8%

Adjusted operating profit

-57

-12

ー

-7

ー

Number of Eight users (1)

3.24

3.52

+0.27

million people

million people

million people

3,398

4,397

subscriptions

subscriptions

Net sales

Eight
Business

YoY

Number of Eight Team
subscriptions+29.4%(1) Number of confirmed users who registered their business card to their profile after downloading the app.
© Sansan, Inc.

14

1 Financial Results for FY2023 Q3

Eight Business: Net Sales and Adjusted Operating Profit
Sales tend to be higher in Q2 and Q4, when we hold large business events.
Adjusted operating profit progressed steadily toward achieving profitability on a full-year basis.

Net Sales(millions of yen)

Adjusted Operating Profit(millions of yen)

BtoCサービス
B2C service
BtoBサービス
B2B service

1,018
909

771

783

96

702
613

552
424
352

533

454
710
480

940
628

460

383

599

534

36

19
824

682

-14

518

-101

-96

Q2

Q3

-12

-57

-91

-135

-176
71

71

71

72

72

74

78

77

81

85

88

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

FY2021© Sansan, Inc.

FY2022

FY2023Q1

FY2021

Q4

Q1

Q2

Q3

FY2022

Q4

Q1

Q2

Q3

FY202315

目次

1 Financial Results for FY2023 Q3

2 Full-Year Earnings Forecasts for FY2023© Sansan, Inc.

16

2 Full-Year Earnings Forecasts for FY2023

Earnings Forecasts
No change to the consolidated earnings forecast as Q3 YTD results progressed steadily against the median of the ranges in
the full-year forecasts.

FY2022(millions of yen)

FY2023 (1)Full-Year Results

Full-Year Forecasts

YoY

25,51032,653 to 33,674+28.0% to +32.0%

22,516

29,046 to 29,835+29.0% to +32.5%

Sansan19,793

22,664 to 22,861+14.5% to +15.5%

Bill One

2,414

5,673 to 6,156+135.0% to +155.0%

Eight Business

2,867

3,153 to 3,354+10.0% to +17.0%942

1,240 to 1,852+31.7% to +96.6%

3.7%

3.8% to 5.5%

+0.1 pts. to +1.8 pts.

Net sales
Earnings Forecasts

Sansan/Bill One Business

Adjusted operating profit
Adjusted operating profit margin(1) We do not disclose specific forecast figures for operating profit (loss) and other line-item profits below it as it is difficult to make a reasonable estimate of expenses related to stock-based compensation, which may vary significantly depending on the level of our stock price,and certain non-operating income (expenses) and other items.
© Sansan, Inc.

17

Appendix© Sansan, Inc.

Sansan Group Overview© Sansan, Inc.

Sansan Group Overview

Mission and Vision

MissionTurning encounters
into innovation

VisionBecome business
infrastructure© Sansan, Inc.

20

Sansan Group Overview

History (1)FY2019−present

Diversifying Business
Fields and Services

FY2007−FY2011

FY2012−FY2018

FY2019Strengthening
Investments
Through Large-Scale
Fundraising

Listed on Mothers Section of Tokyo Stock Exchange
Began offering Bill One cloud-based invoice management solution

FY2012−FY2018
Raised a total of more than ¥10 billion in funding

FY2022
Net sales¥25,510 million

FY2020Changed listing market to First Section of Tokyo Stock Exchange

FY2021
Began offering Contract One cloud-based contract management solution
Changed from First Section to Prime Market of Tokyo Stock Exchange.

FY2023
Launched Bill One Business Card

FY2013
Started broadcasting first Sansan TV commercial
Changed legal name to Sansan, Inc.

FY2007

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022(1) The graph indicates net sales for fiscal years ended May 31 (figures before the fiscal year ended May 31, 2016, are non-consolidated, while subsequent figures are consolidated).
© Sansan, Inc.

21

Sansan Group Overview

Digitally Transform How You Work
Offering a business database that reshapes how people work and connects encounters with people and companies tobusiness opportunities.

Encounters withpeople andcompanies© Sansan, Inc.

Careermanagement

22

Sansan Group Overview

SaaS Focused on Analog-to-Digital
Paper and other analog workflows remain, leaving room for digitization to greatly improve efficiency.
Digitizing analog information quickly and accurately to improve business productivity and provide convenience throughdata usage.

Contact information

Business cards

Accurate digitization of analog information
via technology + manual entry© Sansan, Inc.

InvoicesAI:
Data entry

Contracts

Humans:Manual entry

Humans:Final check23

Sansan Group Overview

Launch of Main Solutions
Founded in FY2007 and started offering Sansan.
Created multiple solutions since then; Bill One, launched in 2020, has achieved rapid growth.

2008年
FY20075月期© Sansan, Inc.

2012年
FY20125月期

2020年
FY20195月期

2022年
FY20215月期

2023年
FY20225月期

24Sansan Group Overview

Overview of Reportable Segments
Sansan Group comprises two reportable segments (1).
Percentage of consolidated net sales (2)Sansan/Bill One
Business

Main services

Sansan69%

The sales DX solution

Bill One

18%

Cloud-based invoice management solution

Others3%

The contract database

B2C Services

1%

B2C business card management

8%

B2B business card management
Business event
Recruiting platform

Eight
Business
B2B Services

Corporate survey system

Event transcription
service(1) The few other solutions not included in reportable segments are recorded in “Others,” while elimination of intra-company transactions (sales) and costs not allocated to segments are recorded in “Adjustments.”(2) FY2023 Q3 YTD© Sansan, Inc.

25

Sansan Group Overview

Operation and Technologies for Digitizing Analog Information
Establishment of analog information digitization operation structure unsurpassed by competitors.
Prompt, accurate digitization of large volume of analog information

Scan large volumes ofanalog information

AI:
Data entry

Humans:Manual entry

Humans: Final check

Database

Automatic and manual data entryof analog information images
Cycle repeated since our founding

Combination of technologies
Automatic detection andmicro-tasking of
analog information© Sansan, Inc.

Automatic detection of
language

Automatic sorting tooperators

Diverse network ofdata entry operators

Image processing
technology

26

Sansan Group Overview

Market Environment as a Tailwind
Digital transformation is boosting the need for cloud-based solutions.
Domestic Private IT Market Size (1)(billions of yen)

Digital Transformation Market Size (2)(billions of yen)

SaaS Market Size in Japan (3)(billions of yen)

+3,791.8+1,370.0+686.2billionbillionbillion2,099.0

6,519.5
14,16015,5301,412.8
2,727.7

FY2020'05/5
ResultFY2024'05/5
Forecast

FY2021'05/5
Estimate

FY2029'05/5
Projection

FY2022'05/5
Estimate

FY2026'05/5
Projection(1) Based on 2023 IT Investment by Japanese Companies: Facts and Forecasts, Yano Research Institute Ltd.
(2) Based on Market Edition and Vendor Strategy Edition of 2023 Outlook of the Digital Transformation Market by Fuji Chimera Research Institute(3) Based on 2023 New Software Business Markets by Fuji Chimera Research Institute.
© Sansan, Inc.

27

Sansan/Bill One Business

Domestic SaaS Market Potential
Japan’s SaaS share of the IT spending market is expected to expand considerably.

Projected market size for FY2022

28.5

Japan enterprise IT
spending market (1)trillion

Up 4.7% YoY

If SaaS share of IT
spending reaches
same level as in the
US (10.9% (2))
Japan SaaS market (3)(5.0% of Japan enterprise IT expenditure market)

3.1

trillion

1.4
trillion

Up 17.1%
YoY(1) Based on Enterprise IT expenditure forecast by Japanese industry by Gartner Japan(2) Prepared by Sansan, Inc. from United States IT Spending Market Outlook by EMR and Software as a Service – United States by Statista Market Forecast(3) Based on 2023 New Software Business Markets by Fuji Chimera Research Institute© Sansan, Inc.

28

Sansan Group Overview

Company Overview (1)Company name

Sansan, Inc.

FoundedJune 11, 2007

Head office

Aoyama Oval Building 13F, 5-52-2 Jingumae, Shibuya-ku, Tokyo, Japan

Other locations

Branch offices: Tokyo, Osaka, Fukuoka, Aichi
Satellite offices: Tokushima, Kyoto, Niigata

Group companies

Sansan Global Pte. Ltd. (Singapore)
Sansan Global Development Center, Inc. (Philippines)
Sansan Global (Thailand) Co., Ltd. (Thailand) (Established April 1, 2024)
logmi, Inc.
Diamond Corporate Data Services, Inc.
CREATIVE SURVEY INC.
Institute of Language Understanding Inc.

Representative

Chika Terada

Head OfficeKamiyama Lab, Tokushima

Employees

1,698

Share capital¥6,748 million

Net sales¥25,510 million (FY2022)

Classification byshareholder type

Individuals and others: 43.25%; foreign financial institutions and individuals: 32.84%;
domestic financial institutions: 14.86%; other domestic corporations: 6.36%;
security firms: 2.69% (As of November 30,2023)

Sansan Innovation Lab, Kyoto(1) As of February 29, 2024
© Sansan, Inc.

29

Sansan Group Overview

About Employees
Employees

Breakdown by Organization (1)(people)

1,698
1,399
Others

1,205
955

Eight business

714

1,698
employees

Sansan/Bill One
FY2019End-Q4FY2020End-Q4FY2021End-Q4FY2022End-Q4FY2023End-Q3(1) As of February 29, 2024
© Sansan, Inc.

30

Sansan Group Overview

Percentage of Each Expense Category to Net Sales
Percentage of Each Expense Category to Net Sales (1) (Cost of Sales/R＆D (2), S&M (3), G&A (4))
売上原価
Cost of Sales

R&D

S&M

G&A

120.0%

100.0%

15.7%

80.0%

19.5%

13.6%

12.3%

12.3%

14.4%

17.8%

16.7%

19.5%

19.9%

39.4%

44.5%

43.5%

39.7%

25.3%

24.0%

22.0%

20.9%

22.1%

2019年5月期
FY20182020年5月期
FY20192021年5月期
FY20202022年5月期
FY2021

2023年5月期
FY2022

60.0%

48.6%
40.0%

20.0%

0.0%

(1) Unaudited(2) Research and development (total personnel costs, server costs, common costs, etc., related to research and development)(3) Sales and marketing (total advertising costs and personnel costs, common costs related to advertising and sales promotion)(4) General and administrative (total personnel costs and common costs related to corporate departments)© Sansan, Inc.

31

Sansan Group Overview

Breakdown of Expenses in Adjustments (1)FY2022

FY2023Q3 Results

Q3 Results(Reference) FY2023
YoY(millions of yen)

Q3 YTD
Results

YoY

Breakdown of expenses in adjustments

Advertising expenses

19

19

+1.8%

50

+3.4%

Personnel expenses

331

490

+48.2%

1,367+38.0%

Server and PC
expenses

139

205+47.1%

556+35.9%

Rent

258

266

+3.0%

766

+3.9%

67

100

+50.4%

260+37.1%

647

669

+3.4%

2,105

+15.3%

Personnel-related
expenses

174

234+34.0%

695+29.2%

Office-related
expenses

211

118-44.0%

497-11.3%

Others260

316+21.4%

912+25.6%

1,463

1,752

+19.8%

5,105+21.5%

Recruiting expenses
OthersTotal(1) Adjustments are the amounts of corporate expenses not attributable to any reportable segment and mostly consist of general and administrative expenses.
© Sansan, Inc.

32

Sansan Group Overview

Track Record of Company Consolidation
To achieve discontinuous growth, we implement investment strategies primarily by promoting company consolidation.
Track Record of Company Consolidation

logmi, Inc.

Diamond Corporate
Data Services, Inc.

CREATIVE SURVEY INC.

Institute of Language
Understanding Inc.

August2020

August
2021

March
2023

June
2023

FY of consolidation

FY2020 Q2

FY2021 Q1

FY2022 Q4

FY2023 Q1Business segment

Eight Business
B2B services

OthersSansan/Bill One Business
OthersOthersPeriod ofConsolidation© Sansan, Inc.

33

Sansan Group Overview

Medium-Term Financial Targets (FY2022–FY2024)
We aim for solid sales growth and stable profit growth.

Important management indicators

Continued consolidated net sales growth of mid-20% range or higher

Improvement of adjusted consolidated profit margin in each fiscal year

© Sansan, Inc.

Sansan/Bill One business

Eight business

Recording adjusted operating profit of ¥10 billion+
for Sansan and Bill One in FY2024(excluding Others in Sansan/Bill One businesssegment)

Recording stable adjusted operating profit on a full-year basis

34

Sansan/Bill One Business© Sansan, Inc.

Sansan/Bill One Business

Sansan: Service Outline
Improving productivity and strengthening the sales force by using various contact and company information.

Contact information
Let’s try tosell tocompany A

Business
cards

EmailsWebsiteinquiries

Virtual
Cards

Phone
calls

SeminarsCompany information

Use various contact
and company
information

Corporate information

Resolve Issues in Sales Activities
Missing sales opportunities
because of lack of correctcustomer information© Sansan, Inc.

Inefficiencies fromanalog work36

Sansan/Bill One Business

Sansan: Integrating a Range of Corporate Data
Company Details© Sansan, Inc.

37

Sansan/Bill One Business

Sansan: Digitizing Contact Information to Visualize Internal Human Networks
Contact Management© Sansan, Inc.

38

Sansan/Bill One Business

Sansan: Overwhelming Market Share and Solid Customer Base
Has gained high level of brand recognition among B2B services and established an overwhelming market share.
Built a solid customer base backed by Japan’s highest level of SaaS management expertise, cultivated since we began.

Overwhelming Brand Recognition and Market Share in B2B

Strong Sales Organization and Solid Customer Base

Sales share in 2022 (1)SaaS expertise cultivatedover the 16 years since our founding

Sansan82.4%(1) Based on Latest Trends in Business Card Management Services in Sales Support DX 2024 (January 2024, survey by Seed Planning, in Japanese)© Sansan, Inc.

39

Sansan/Bill One Business

Sansan: Potential Market Size of Sansan in Japan (TAM)
Number of users within current customers is limited, and there is room for many dozens of times more coverage expansion.

Company Size

Sansan Coverage

Sansan Coverage(number of employees)(companies) (1)(YoY change)(employees) (1)(YoY change)

1,000+

17.7%

4.9%

(+2.0 pts.)

100–999<100

4.3%(+0.6 pts.)

0.3%(+0.0 pts.)(+0.9 pts.)

3.8%(+0.7 pts.)

Potential formany dozens of times
coverage expansion

1.7%(+0.3 pts.)(1) Sansan coverage is calculated with the number of subscriptions and total number of IDs in Sansan as of FY2023 Q3 end as the numerator and the number based on Economic Census for Business Activity in 2021 issued by the Statistics Bureau as the denominator.
© Sansan, Inc.

40

Sansan/Bill One Business

Sansan: Service Plans

A. Basic company-wide use plan
1

2

Cost by number of contract IDs

Initial cost

12 months’ license cost

(initial costs)

Cost for digitizing existing business cards

Customer
Success Plan
(initial costs)

B. Previous plan (ID subscription)

Digitization costs for business cards already held
(upper limit placed on number of business cards)

Offer introduction support plans with individual quotation
Costs for implementation and operational support of Sansan services

3

ScannerMonthly ¥10,000/scanner(running costs)

Rent scanners and tablets to customers based on number of office floors and/or branches

4© Sansan, Inc.

License cost

Determined according to company
size and usage (annual subscriptions)

Setting by number of contract IDs(running costs)

Tens of thousands to millions of yen per subscription

Fixed billing for each ID (upper limit placed on
number of business cards digitized)(annual subscriptions)

Timing of payment

At start ofcontract

At start ofcontract

At start or
renewal ofcontract
At start or
renewal ofcontract41

Sansan/Bill One Business

Sansan: Sales Composition by Customer Size (Recurring Sales)
No significant change in the revenue composition ratio by customer size.
Sansan Sales Composition by Customer Size (1) (Recurring Sales)
YoY change(revenue)

Company size
(number of employees)

FY2023End-Q3(composition)

1,000+
100-999
<100

45%

＋

15.0%
＋

38%

14.3%
＋

17%
FY2017End-Q4FY2018End-Q4FY2019End-Q4FY2020End-Q4FY2021End-Q4FY2022End-Q416.1%

FY2023End-Q3(1) Prepared based on Sansan MRR (unaudited). Company size is based on corporate information as of the most recent quarter end.
© Sansan, Inc.

42

Sansan/Bill One BusinessBill One: Service Outline
Making all forms of invoices receivable online, while promoting DX of invoice operations through accurate digitization.
Following Bill One’s introduction, customers can smoothly handle various legal amendments and fast monthly closing offinancial accounts.
Invoice issuer

Receive, digitize & centralize your invoices. Fast monthly closing.

Bill One user companies

Postal mailOne-stop receipt
Emailattachment

UploadDigitization of invoices with 99.9% (1) accuracy
Centralized management by database

Resolve Issues in Invoicing Work
Receiving and managing
paper invoices is time-consuming
and labor-intensive

Personnel forced to come to theworkplace to process
paper invoices(1) Digitization accuracy when conditions specified by Sansan, Inc., are met.
© Sansan, Inc.

43

Sansan/Bill One BusinessBill One: Accurately Digitizing Paper, PDF, and Other Invoices
Invoice Information© Sansan, Inc.

44

Sansan/Bill One BusinessBill One: Customer Base and Positioning
Regardless of industry or business type, acquiring various customers.
Achieved #1 sales in cloud invoice receiving service market.

Market Share in Cloud Invoice Receiving Services (1)Customers Running Bill One

Share of Sales
in Cloud Invoice
Receiving Service Market#1(1) Deloitte Tohmatsu MIC Economic Research Institute, "The Market of Online Invoice Receiving Solution Continues to Grow at a Staggering Rate" (MIC IT Report, November 2023).
© Sansan, Inc.

45

Sansan/Bill One BusinessBill One: External Environment after Japan’s Invoicing System started
Japan’s Invoicing System entered into effect in October 2023 and the grace period for the Electronic Bookkeeping Act
concluded at the end of December 2024. Various changes are expected to occur in the environment surrounding invoices,such as end of transitional measures of the Invoicing System.
October 1
2026

October 1 January 1
2023
2024

Invoicing
System

Revision ofElectronic
BookkeepingAct© Sansan, Inc.

• Registration is required to issue
eligible invoices.
• Receiving companies will be required
to confirm whether received invoices
meet requirements for qualified
invoices, such as the registration
number stated and the recalculation of
the consumption tax amount.

Application starts• System for correctly calculating tax
credits for purchases subject toconsumption tax.

October 1
2029

Transitional Measures for purchases from tax-exempt entities, etc.

80% deduction on the equivalent amountof input tax for taxable purchases
equivalent from tax-exempt entities, etc.

50% deduction on theequivalent amount of input tax for
taxable purchases equivalentfrom tax-exempt entities, etc.

No taxdeductible• Laws related to data preservation oftax-related books and documents.
• Paper receipt national tax documents
can be stored electronically with noneed to apply to tax offices.

From January 2022
grace period

Strict enforcement of bookkeeping obligations• Electronic preservation of electronic
receipt national tax documents mademandatory.

46

Sansan/Bill One BusinessBill One: Room for Expanded Medium- and Large-Sized Company CoverageStrong brand recognition of Sansan and robust customer base centered on medium- and large-sized companies making
significant contribution to Bill One’s gaining credibility.
Income from medium- and large-sized companies continuing to expand, bringing expectations of coverage expansion.
User Company Coverage (1)Sales Composition by Customer Size (3)FY2023 YoY change(revenue)
End-Q3(composition)

Company size
(number of employees)＋

1,000+

9,474
E
1,000+

M
100-999

S<100
Company size
(number of employees)

subscriptions

17.7%

2,607

24% 173.2%

100-999
<100

4.0%

＋

141.4%
4.3%

2.0%

0.3%

0.0
Coverage(companies)

52%＋

24% 150.4%% (2)FY2019End-Q4FY2020End-Q4FY2021End-Q4FY2022 FY2023
End-Q4 End-Q3(1) The coverage is calculated with the number of subscriptions for each solution for FY2023 Q3 end as the numerator and the number based on Economic Census for Business Activity in 2021 issued by the Statistics Bureau as the denominator.
(2) Paid subscriptions only.
(3) Prepared based on Bill One MRR (unaudited).
© Sansan, Inc.

47

Sansan/Bill One Business

Expansion of Bill One Invoice Network
Approx. 168,000 companies in the Bill One invoice network as of FY2023 Q3 end.
Total invoices in invoice network accounts for ¥34.8 trillion annualized as of February 2024.

Potential Market Size of Bill One～Approx.

Approx.

168,000
2,607

companies

Bill One paid
subscriptions

2 million
Companies in Japan (1)(1) Based on Economic Census for Business Activity in 2021 issued by the Statistics Bureau(2) Paid subscriptions + free subscriptions + companies that send invoices to paid and free subscriptions© Sansan, Inc.

48

Sansan/Bill One BusinessBill One: Bill One Business Card Function Overview
The Bill One Business Card, a corporate credit card optionally available with Bill One, boosts efficiency in corporate credit
card payments, contributing to even faster monthly closing.
Users can effectively adapt to the Invoicing System and Electronic Bookkeeping Act, while reducing fraud risk.

Instantly reflecttransaction details

Issue cards and process
payments on Bill One

Digitize receipts andreconcile automatically

Request receipt
submission after usage
automatically

1. Centralized control- Card issuance is available on Bill One.
- Reduces the workload for lending andmanaging cards.

Card administrator

2. Security measures- Limits and restrictions on usage amountand purposes.
- Minimizes fraud risk.

3. Automatic reconciliation oftransaction details and receipt- Receipts are digitized at 99.9% (1) accuracy
by the end of the next business day.
- Transaction details and receipts areautomatically matched.

(1) Digitization accuracy when conditions specified by Sansan, Inc., are met.
© Sansan, Inc.

49

Sansan/Bill One BusinessBill One: ARR Targets for Bill One
Aiming for ARR of ¥7.5 billion+ by end of May 2024.

Net Sales of Bill One(millions of yen)

May 2024
ARR Aim for

1,680
1,427

¥7.5 billion+

1,160
ARR
February 2024

870

¥6,844

645

0

10

23

Q1

Q2

Q3

FY2020© Sansan, Inc.

50

89

Q4

Q1

148
Q2

259

Q3

FY2021

327

Q4

401

Q1

496

Q2

millionQ3

FY2022

Q4

Q1

Q2

Q3

Q4

FY202350

Sansan/Bill One BusinessContract One: Service Outline
The Contract One contract database accurately digitizes all contracts a company signs, building a comprehensive internal
database and enabling organization-wide use of the information. Along with features for summarizing contract provisions via
GPT and linking with Sansan, we added features to visualize contract information and automatically analyze contract status
Service Outline

Function Enhancement

Evolved into a database that manages contracts
from a high-level perspective
Accurately digitize contracts, which are an integral corporate asset, to create acomprehensive database of transaction terms and conditions. The ability to automaticallyassociate related contracts enables organization-wide management of contracts from ahigh-level perspective, thereby helping to maximize corporate profits.

© Sansan, Inc.

Digitized contracts’ relevance is visualized as a tree diagram by auto-identifying masteragreements as parent contracts and individual agreements as child contracts and linking
them. From contract information in the database, Contract One automatically picks up on
information such as contract expiration, automatic renewal clauses, and contract duration,and then automatically classifies contract status, whether active or expired.

51

Eight Business© Sansan, Inc.

Eight Business

Eight: Service Outline
Business card app used by 3.5 million+ professionals; enables one-touch business card exchange and smart contract
management.
One-touch business card exchange,
smart contact management
Eight- Business card app

Open the app,and swap cards in an instantBusiness card app for turning all your encounters
into contacts and opportunities, at a touchTake a photo and easily manage
and search cards

Updates on career moves,
like promotions and job changes

Offering apps for potential opportunities though business card exchange and management© Sansan, Inc.

53

Eight Business

Eight: Monetization Plans
Monetization by strengthening corporate solutions that leverage network of 3.5 million+ users.
B2B Services (1)B2C Services

Business card management

Business events

Recruiting platform
B2B

B2C

B2B

B2B

Fixed monthly fee

Fixed monthly fee

Fixed fee per event(annual subscription)(annual subscription)(held irregularly) (2)(fixed contract)

Delivers additional functions
to users, such as network
data download

Users can share contacts
with colleagues

Various business event services
using Eight's business network

Professional recruitment services
targeting Eight users

Fixed fee (3)(1) B2B services in the Eight business include event transcription services for the media logmi Biz, logmi Finance and logmi Tech provided by logmi, Inc.
(2) There are multiple fee settings depending on the type of event held, etc.
(3) There is an additional charge when a decision to hire is made.
© Sansan, Inc.

54

Initiatives for Sustainability© Sansan, Inc.

Initiatives for Sustainability

Material Issues (Priority Issues)
Identified key material issues (priority issues) relating to environment, society, and governance and set long-term quantitative
targets. Working to resolve these issues through our core business, we aim to contribute to achieving the SDGs and building
a sustainable society.
1

Balance Security and Convenience2

1. Provide safe and stable infrastructure services
2. Ensure robust protection of data privacy andInformation security
Metrics

Number of major incidents

Proportion of those qualified as
Protection of Individual Information
PersonTargets for FY2029 (1)Results for FY2022 (1)00maintained at 80% or
higher

4

Transform Work
Through Innovative DX Services
3. Promote DX services that improve productivity
4. Create innovative business infrastructure
Metrics

Number of items converted fromanalog to digital information using
our services

Number of users of our services

88.0%

Establish a Firm Management Structure
to Support Rapid Business Growth
7. Strengthen corporate governance
8. Ensure compliance
Metrics

3

Targets for FY2029 (1)Results for FY2022 (1)500 million

190 million (2)20 million people

55.73 million people (2)Respect Employee Diversity
and Producing Innovation
5. Promote recruitment, development,
and success of human resources
6. Promote diversity, equity and inclusion
Metrics

Targets for FY2029 (1)Results for FY2022 (1)Proportion of recruitment throughreferrals

35%

12.0%

Unipos (3) (peer bonus) posting rate

80%

59.6%

Ratio of female employees inmanagement positions

30% or higher

17.8%

Ratio of female employees

45% or higher

34.9%

Conserve the Environment
Through Business
9. Address climate change issue
10. Use natural capital efficiently

Targets for FY2029 (1)Results for FY2022 (1)Ratio of female Directors

30% or higher

22.2%

Number of significant complianceviolations

00

Proportion of employees receiving
compliance-related training

100%

100%

Metrics

Targets for FY2029 (1)Results for FY2022 (1)Scope 1+2 (4)carbon neutral

851 t-CO₂

Number of uses of paperlessfunctions in our services

120 million

10 million (2)(1) Results and targets presented here are for the Company on a non-consolidated basis.
(2) Results for the Company’s services are aggregated for Sansan, Bill One, Contract One and Eight.
(3) Unipos is a service centered on the peer bonus system provided by Unipos, Inc.
(4) Scope 1 is calculated by aggregating direct GHG emissions from our own offices and facilities. Scope 2 is calculated by aggregating by indirect GHG emissions from the use of purchased electricity and thermal energy in each office© Sansan, Inc.

56

Initiatives for Sustainability

Expansion and Upgrading of Sustainability Information
ESG data expanded on sustainability page of our corporate website.
Published Annual Report 2023, expanding sustainability information.

© Sansan, Inc.

Sustainability page

Annual ReportJapanese: https://jp.corp-sansan.com/sustainability

Japanese: https://ir.corp-sansan.com/ja/ir/library/report.html

English: https://www.corp-sansan.com/sustainability

English: https://ir.corp-sansan.com/en/ir/library/report.html

57

Others

External Evaluations
Acquired various external evaluations regarding ESG Rating, Annual Report and IR activities.

ESG Rating/ESG Index

Annual Report 2023

IR Website

MerComm, Inc.「International ARC Awards」

Nikko Investor Relations Co., Ltd.

MSCI ESG rating of “A”

PDF version of Annual Report
BronzeAll Markets Ranking in Japan
Corporate Websites AAA

FTSE

Government Pension Investment Fund

Daiwa Investor Relations

FTSE Blossom Japan
Sector Relative Index

Excellent Integrated Report
Most-Improved Integrated Report

Commendation Award 2023
BronzeMSCI (1)(1) The use by Sansan, Inc., of any MSCI ESG Research LLC or its affiliates (MSCI) data, and the use of MSCI logos, trademarks, service marks, or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of Sansan, Inc., by MSCI.
MSCI services and data are the property of MSCI or its information providers and are provided “as-is” and without warranty. MSCI names and logos are trademarks or service marks of MSCI.
© Sansan, Inc.

58