Turning encounters
into innovation

ANNUAL REPORT 2021
Year ended May 31, 2021

Mission

Turning encounters into innovation
Our world is built on encounters; they are the very basis of society.
People encounter people.
Companies encounter companies.
We believe these connections bring innovation,
which in turn leads to new ways of working and doing business.
By developing innovative products,
we change how people and companies value their encounters,
and even change how those encounters take place.

VisionBecome business infrastructure
Transport networks, electrical grids, the internet.
These are some of the roads of society.
We believe another road is possible.
A new form of infrastructure for the business world.
This road connects people with people, companies with companies,
and turns everyday business into innovation.
We aim to be that new road, that business infrastructure.

ANNUAL REPORT 2021

01

Values

Face your mission and love your work
Lead the customer
Anticipate the experience
Make decisions with determination and intent
Find a faster way
Leverage all strengths
Appreciate and be inspired
Don’t fear change, and challenge yourself

PremiseBalancing security and convenience

02

Sansan, Inc.

ANNUAL REPORT 202103

Performance Highlights Fiscal 2020 (fiscal year ended May 2021)

Sansan+4.9 %+22.6 %

Number of“Sansan” subscriptions+14.7%

Monthly sales per
subscription*2

170,000yen

7,744(+4.9% year on year)(+14.7% year on year)+0.7 points

Annual growth rate of
consolidated net sales

21.1 %+0.03 points

ARR *1

16,137million yen

Consolidated grossprofit margin

Market share *4(+0.03 points year on year)(+0.7 points year on year)

0.63%

Annual growth rate ofrecurring net sales

83.5%

23.6%

(+22.6% year on year)

Eight

87.7%

(+1.3 points year on year)

+241

+0.21

million people+1.3

pointsAverage monthly churnrate over past 12 months*3

Consolidated numberof employees954(+241 year on year)

Number of “Eight” users*5+46.8%

2.92

million people(+0.21 million year on year)

Share in business cardmanagement apps*6

Number of “Eight Company
Premium” subscriptions

2,253(+46.8% year on year)

Annual growth rate of
B2B service sales

No.1

66.3%

Bill One*1 Annual Recurring Revenue*2 Monthly results for the end of each fiscal-year month in the Sansan Business(including some new services other than “Sansan,” unaudited)*3 Ratio of decrease in monthly fees associated with contract cancellations to total monthly fees from existing “Sansan” subscriptions*4 “Latest trends in business card management services and sales services [SFA/CRM/online business card exchange],”
December 2020, Seed Planning, Inc.
*5 Number of authenticated users who registered their business card in their profile after downloading the app*6 Average number of monthly active users, domestic business SNS apps, January–December 2020 (App Store + Google Play),
January 2021, App Annie research

04

Sansan, Inc.

Online invoicereceiving solution

Number of “Bill One”
paid subscriptions

239(Service started in May 2020)

ANNUAL REPORT 2021

05

Index

01 Our Philosophy

Editorial Policy

04 Performance Highlights 06 Index

Chapter One: A Story of Value Creation
08 CEO Message

14 Value Creation History

16 Value Creation Model

1 8 Business Model

20 Competitive Advantages

22 Intellectual Capital

24 Human Capital

26 Opportunities and Risks

28 CFO Message

Chapter Two: Business Strategies to Increase Corporate Value
30 Business Overview 32 Sansan Business 36 Eight Business 40 New Services
Chapter Three: The Structures Underpinning Sustainable Growth
46 Sustainability Policy 47 Environmental Initiatives 48 Social Initiatives 50 Governance Initiatives
Corporate and Financial Information
56 Corporate and Financial Information

06

Sansan, Inc.

The objective of this annual report is to convey to all of

the strategic story behind our efforts to realize the Group’s

Sansan’s stakeholders, in an easy to understand way, themission and vision. In the editing process, we referred toGroup’s progress and achievements to date, as well as

the International Integrated Reporting Framework andboth financial and non-financial information concerning

other materials.

Reporting Period
Fiscal 2020 (from June 1, 2020, to May 31, 2021)

Disclaimer Regarding Forward-Looking Statements
This report may contain future assumptions, prospects andpreferences; competition with other companies; changes inforecasts based on plans, but these forward-looking

laws, regulations and others; and a number of other futurestatements are based on the information that was available

factors. Therefore, the actual performance announced

to us at the time of the report’s preparation, and on certain

may vary depending on these various factors, and theassumptions that we assume to be reasonable, andCompany assumes no responsibility for any damage

Sansan, Inc. (“the Company”) does not promise to achievecaused through the use of information in this report. In

these. Major differences may occur between the forecast

addition, regarding new information and future events, theand the actual performance, including changes in

Company has no obligation to revise or officially announce

economic conditions, consumer needs and userrevisions to the future prospects published in this report.

ANNUAL REPORT 2021

07

CEO Message
The Group’s First Vision since our Founding,Formulated with Firm Resolve

With the unique mission of“Turning encounters into
innovation,” our vision is to“Become business
infrastructure”

Chika Terada
Representative Director & CEOFirst off, I would like to express my deep sorrow for all who passed
away from the COVID-19 pandemic and extend my heartfelt
condolences to all who were affected by the disease and to their families
and associates. I would also like to express my gratitude to everyone
who has worked to combat the pandemic and keep society functioning.

08

Sansan, Inc.

We have long been engaging

company but for us to exist toin business with the mission offulfill a mission, to be more like

“Turning encounters into

a project than an organization.

innovation,” but at the

To this end, we recognized the

beginning of 2021, for the firstneed for a mission, which istime since the Group was

the company’s reason forfounded, we decided toexistence, but did not feel theformulate a vision that puts

need to spell out the kind of

into words what we should aim

company we should be—in

for as a company. It is summed

other words, a corporate

up in the phrase, to “Become

vision. But now that thebusiness infrastructure.” To use

business has grown steadily

a metaphor, infrastructure is aand we have gone public, thetype of road that people use

number of stakeholders

usually without being aware ofsurrounding the Group is

it. Various roads act asincreasing daily. We came toinfrastructure supporting

realize the need to show

modern life—water mains,society what kind of company

electrical grids, gas lines, thewe are, and so decided tointernet. We take no small

formulate a vision. In the

pride in having created a new

business scene, I wonder how

market in the business world.

many companies have

What we want to aim for as a

succeeded in becoming likecompany, however, is toinfrastructure by following

become a new road that notheir own unique mission. Even

one has ever thought ofdeclaring we want to “Become

before. In the business scene,business infrastructure” in the

we want to be the road thatfirst place is not something

brings people to places theythat can be said off-handedly.

could not get to before and to

I am very proud that we havenew vistas they had neverbeen able to tackle thisseen before. We aim to be thechallenge head on. That is

new road, the business

precisely why I am firmly

structure that connects people

resolved in my desire for thewith people, companies withcompany to strive to reach thecompanies, and turns

point where we are widely

everyday business into

recognized by society as ainnovation.

form of business infrastructure

Up to now, we have always

that continues to generate awanted us to be a mission-

new business culture anddriven company. Our goal wascustoms—in other words,

not simply to create ainnovation.

ANNUAL REPORT 2021

09

We are working to build corporate value while
minimizing risks associated with the COVID-19
pandemic and embracing change as opportunity.

Review of Fiscal 2020
Since its establishment in 2007, the

COVID-19 pandemic, rapid

the situation to be drawn out. By

prevented us from achieving theincluding “Seminar One” a service

businesses with 100 or fewer

Group has been taking on thechanges have occurred in thecontrast, from a longer-term

growth we had wanted.

that efficiently supports andemployees to use certain basic

digitization of printed businessglobal economy and across society

perspective, this crisis can also be

Nevertheless, even in a less-than-maximizes the effectiveness offunctions free of charge. In

cards and has refined theas a whole. In the corporate

seen as a once-in-a-lifetime

ideal business environment, withcompanies’ business seminars,

operating the “Bill One” service, we

technology and operations used insphere, ways of working online oropportunity in terms of

the pandemic being much moreand “Eight ONAIR,” an intelligent

incur a certain variable cost

digitizing business cards to achievethat are not premised on face-to-disseminating new services andprolonged than initiallybusiness event matching anddepending on usage status, so

an accuracy rate of 99.9%. As aface contact have proliferated,functions online, which will feed

anticipated, we were still able tohosting system that draws

there is a risk in making the service

result, “Sansan” has grown into awhile demands are mounting for

into changes in people’s existingachieve a certain level of growth,

together various events and isavailable for free, but our vision tohabits and behaviors.

once again confirming theeasy for anyone to join.

“Become business infrastructure”*1

service with an 83.5% share of thechanges in behavior in line withmarket for contact management

efforts to drastically improve labor

services for corporations. The service

productivity and efficiency. For the

boasts more than 7,700

Group, this pandemic presents

subscribers. Moreover, we haveboth potential risks and potential

environment, a situation which

created new businesses byopportunities. One short-term

leveraging the competitivechange in society has been aadvantages we have cultivated—
the technology and structure forstrength of the business foundation

Among our new initiatives, one

ended May 31, 2021 (fiscal 2020),

we have carefully built up over thethat I have the highest hopes for is

I would like to promote thisthe Group faced a difficult businessyears.

“Bill One,” our online invoice

business as a major step toward

As a new initiative, “Sansan”

receiving solution. Launched only

the Group’s becoming business

was neither completely positive

started offering a “Virtual Cards”

in May 2020, “Bill One” has alreadyinfrastructure that supports Japan’s

nor negative. We struggled

function in June 2020. We hadachieved remarkable growth indigital transformation (DX).

decline in the chance to exchange

throughout the year with how tobeen planning and preparing forterms of acquiring new subscrip-

printed business cards, with fewer

weather this situation and withthis before the COVID-19 outbreak,tions and expanding monthly

January 2021, we changed our

digitizing analog information—

direct interactions between

how we could identify new

but decided to roll it out far sooner

recurring revenue. It is nolisting to the First Section of thebeyond business cards and intobusiness people. Thanks to ourbusiness opportunities. With

than planned in response to

exaggeration to say that in over 20

Tokyo Stock Exchange. We were notfields such as invoices andbusiness model, there has been no

consolidated net sales up 21.1%

changes in the businessyears of experience of being

able to do this at the time of ourcontracts.

immediate impact on ouryear on year to 16,184 million yen,environment. A little more than ainvolved in business, this is the first

IPO since we did not meet certain

performance, but we do not want

the reality is that the pandemic

year has passed since the service

time I have felt a service being

criteria, but personally, I take thestarted, and the frequency of use

driven by such a tailwind, and the

new listing as proof that we were

has more than doubled frompandemic is acting as part of thatable to resolve our long standing

where it started, and continues to

tailwind. We have taken various

issue. With the relisting, we cangrow steadily. In addition, in thesteps to further grow this business,

expect to expand the shareholder

Eight Business, we held a large-such as setting up a new dedicatedbase and improve liquidity, and inscale online event, called“Bill One” unit, stepping up

my view we have established an“Climbers,” as part of our efforts torecruitment of staff, and airing TV

environment in which we can work

augment monetization of our B2B

commercials. Furthermore, withto enhance our essential corporate

services. The event drew thethe aim of expanding the network

value.

participation of many businessmade up of all the companies thatpeople. We also launched newhave contact with our services, we

services seeking to create a newhave begun offering a Small

event tech service market in Japan,

Business Plan, which allows

Since the outbreak of the

10

Sansan, Inc.

Looking back on the fiscal year

prompted us to make this decision.

In terms of corporate actions, in*1 “Latest trends in business card management
services and sales services [SFA/CRM/online
business card exchange],” December 2020, Seed
Planning, Inc.

ANNUAL REPORT 2021

11

Moving toward Medium-Term Sales Growth
Taking a broad retrospective look at

In terms of key medium-term

product areas while accelerating thethe Group from its founding to the

management indicators, at present wepace of growth. Also, under the former

present day, although modest in scale,

are in the phase of aspiring to boost

organizational structure engineering

I am struck by the fact that we haveconsolidated sales. All that is needed

functions were dispersed among

been able to build up a new market

to do this is for each of our services tovarious divisions, but by establishingwith our own hands and lead its

grow. For the services the Groupa new Engineering Division anddevelopment. Looking from the present

currently provides, we continued toconsolidating engineering functions

to the future, however, not only in thecapitalize on the strengths we had

there, we now have a framework that

global market but in Japan as well,cultivated to expand into an array oftakes us to the next level in terms ofthe value we have offered businesses

new fields, envisioning that each new

the optimal utilization of resources andin addressing challenges and realizing

service would create synergies withthe cultivation of developers.

potential is still small. Even “Sansan,”existing services as we went along.

Moreover, to achieve optimal resource

our current main business, has a

In other words, in my view we haveallocation, the sales and marketing

penetration rate of less than 3% among

what can be called a multiproductdepartments have also been

Japan’s working population, leaving abusiness portfolio. Under the mission of

consolidated under a newly establishedmassive unexplored territory. So, when

“Turning encounters into innovation,”

Business Division. Now it will be possible,

Governance is another critical factor

contribute to building a sustainable

others to create something. Recently,

it comes to services in the newly

the portfolio has the nature of a DX

for example, to allocate resourcesin striving for a sustainable increase insociety and that this will, in the end,

we have also begun supporting thelead to the Group’s own sustainableestablishment of a private college in the

We will continue contributing to building
a sustainable society while strengthening
financial and non-financial initiatives.

Achieving a Sustainable Increase in Corporate Value

started fields of invoices, contracts,

service that changes the way people

even more responsively and flexibly

corporate value. Many of the services

and business events and seminars, it

work, starting with business events

to products with higher growth

we provide are expanding rapidly while

growth and to greater corporate value.

small town of Kamiyama, Tokushima

With this conviction, we have been

Prefecture, where our remote satellite

goes without saying that there is also

which are forums where people meet,potential. This will greatly improve per

carving out new markets. In this context,

huge unexplored territory in thefollowed by contact management andcapita sales productivity and I expect

I believe it is necessary to constantly

engaging in environmental and social

office is located. Kamiyama Marugoto

initiatives for some time. In terms ofCollege of Design, Technology, andmarkets and much room for growth.

customer information management

will make a strong contribution to

optimize our form of governance not

We never had any existing

services, and feeding into services to

the growth of the business.

only to meet the demands of society

the environment, we are carrying out

Entrepreneurship (provisional name)but also to align with this kind of business“Scan for Trees,” an activity to support

is preparing to open in April 2023.

businesses to emulate for the services

streamline various business flows suchand value we have created so far. Rather,as contract and invoice processing.

and long-term increases in consolidated

phase. I would like our governancereforestation and recovery in disaster-

Guided by the concept of being “a school

In July 2021, we reorganized the

Our efforts to achieve mediumsales and accelerate the growth rate

framework to evolve daily as we seek

stricken areas based on businessthat changes the future of humanity

unprecedented business models withGroup to optimize our business

are not limited to such realignment. I

to strike a balance between reinforcing

cards, our initial business and thethrough technology and design,” thethe aim of providing a completely

framework around these multiproductwould also like to pursue various

management oversight and enhancing

starting point for all our services. In

college will encourage the development

this activity, we plant a tree every timeof entrepreneurs who will change our

we took on the challenge of developing

new business culture and customs.

areas. This is one of the biggest

investments after carefully assessing

the speed of business execution. We

In the process, in numerous respects,

reorganizations we have undergone

business conditions and weighing thehave also positioned the recruitment of

the total number of business cards

world. Through our support of the college,

digitized in our “Sansan” service reaches

we are confident that we can help

including product development,

since the Group’s inception. Specifically,

opportunities available. The current

human resources as one of our growthmarketing, and providing value to users,

this time we assigned an officer to eachpandemic makes it difficult to predict

strategies, but personnel development

the equivalent of one tree. As ofbuild a world where working people will

September 2021 we had planted anaturally use the Group’s DX services

total of 9,520 trees.

as business infrastructure and more

we have built up a solid track record

major product area, who is responsible

the business environment down theafter hiring is also a key theme. I

by trying every available means tofor everything from development

road, but on the whole, by minimizing

am keenly aware that our people are

add links to the value chain one by one,strategy planning to profit monitoringrisks and seizing them as opportunities,

indispensable and play an extremely

little by little. Going forward as well, I

as well as participating in businessand by turning change into chance,

important role in the growth of ourto supporting data utilization forBy vigorously promoting these

do not see us departing significantly

planning. By concentrating responsibility

we would like to keep our sights fixedbusiness and in preserving andgovernment agencies and NPOs,

various financial and non-financialfrom this attitude: We will continue toin this way, we have established aon the possibility of tracing a growth

amplifying our competitive advantages.

our range of activities includes a project

initiatives, we would like to accelerate

pursue the realization of businessframework that allows autonomous

curve over the longer term that

We will continue working not only toto support children’s education throughthe development of our businesses

exceeds current expectations.

establish an internal framework thatbusiness cards. In the Kodomo Meishi

and maximize shareholder andfosters human resources development,(Kids’ Business Cards) Project, we

corporate value over the longer term.

but also strive to ensure diversity bycreate and distribute free businessI look forward to your continued

hiring people from a wide range ofcards for children and hold workshops.

support and encouragement forbackgrounds.

Through the exchange of businessthe Group in the future.

growth, steadily and accurately.

decision-making and action in individual

I believe that helping to address

12

Sansan, Inc.

With regard to society, in addition

cards, this project helps children

creatively achieve innovation.

social issues through our businesstreasure the value of every encounter

Chika Terada

activities is how the Group can best

and the importance of working withRepresentative Director & CEO

ANNUAL REPORT 2021

13

Value Creation History

2019–present

As a leading SaaS company in Japan, the Group has since its founding provided
services that help solve the business issues faced by companies and business people,

Multifaceted Growthusing a novel approach that combines cloud-based software with original technology.
We will pursue sustainable growth as we continue working to create new services thatmeet the latent needs of society.

2019
Listed on the Mothers Sectionof the Tokyo Stock Exchange

2013 –20182020

Marketing throughLarge Fundraising

2007–2012

Began offering “Bill One” online invoice receiving solution
logmi, Inc. became a subsidiary
Launched “Seminar One” B2B seminar management system

2013 – 2018

Founding andLaunch of Business

2021

Raised a total of more than
10 billion yen in funding

Listed on the First Section of the Tokyo Stock Exchange

2013
Start of broadcastsof first Sansan TV commercial

2007
SAN SAN, Inc. (now Sansan, Inc.) founded

2014

Began offering “Link Knowledge” services(now “Sansan,” B2B business card-based
contact management service)

Changed legal name to Sansan, Inc.

2012
Launched “Eight,” a business card management app

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

*The graph indicates net sales for fiscal years ended in May (figures prior to the year
ended May 2016 are non-consolidated, while subsequent figures are consolidated).

14

Sansan, Inc.

ANNUAL REPORT 2021

15

Value Creation Model
Guided by our mission, the Group is investing an array of

Visionmanagement resources and developing a unique businessmodel, building one of the largest organizations withamong the highest level of net sales of any SaaS company
in Japan. Through these efforts, the Group will change theworking styles of companies and business persons andpromote the digital transformation (DX) of society.

BusinessModel
A Business Modelthat Brings
About DX

Become business
infrastructure

Developing abroad lineup of
DX services thatsolve businesschallenges
p.18 Business Model
p.30 Business Overview

Input Management
Resources We Invest

Input

OutputManagement
Resources We
InvestResults We Deliver
One of the largest
organizations withamong the highest
level of net sales of
any SaaS company inJapan

Outstanding talent,
technology unrivaledby the competition
p.20 Competitive Advantages
p.22 Intellectual Capital
p.24 Human Capital

p.04 Performance Highlights
p.32 Sansan Businessp.36 Eight Businessp.40 New Services

Financial Cash and deposits: 12,389 million yen /Capital Shareholder capital: 10,892 million yen
Social, Cloud-based solutions that promote
Relationship DX and reshape how we work /Capital Strong brand awareness in Japan
Human Number of employees: 954 /Capital Number of engineering staff: 314 /Systems in place for raising security
awareness

Intellectual Structure for digitization /Capital Education and training, AI technology

Output Results We Deliver
Financial Compound annual growth rate for net sales over five years: 38.7% /Capital Net sales: 16,184 million yen / Gross profit margin: 87.7%

Outcome&
ImpactSocial Value
We Provide

MissionTurning encounters
into innovation

Valu
e

s

Promoting DX,
changing the way
companies andbusiness
people work
p.46 Sustainability Policy

Pre m is e

Social, Total number of subscriptions: Over 10,000 /Relationship Number of “Eight” users: Over 2.9 million / Sales share of market for
Capital contact management services for corporations: 83.5%
Human Industry-leading SaaS sales and marketing professionals in Japan: 377/
Capital Protection of Individual Information Person qualifications: 811 /Ratio of women in management positions: 14.8%
Intellectual “Sansan” and “Bill One” digitization accuracy: 99.9% /Capital Patents: 8 (19 pending)Natural Cumulative number of trees planted: 9,520 trees
Capital (as of the end of September 2021)

Outcome & Impact Social Value We Provide
Promoting DX, enhancing corporate productivity, promoting working style reforms,
generating new business opportunities through data utilization, creating innovation,
contributing to the economy through advanced technological research（Fiscal year ended May 31, 2021）

16

Sansan, Inc.

ANNUAL REPORT 202117

01_A Story of Value Creation

02_Business Strategies to Increase

Corporate Value

03_The Structures Underpinning
Sustainable GrowthBusiness Model

service is used. The post-subscription churn rate

digitizing analog information using technological andtherefore tends to be low. In addition, because ourhuman capabilities.” Our main fee model isservices are based on data with 99.9% accuracy, they

subscription-based (monthly billing), which offers a

are highly scalable and readily linked to other services

A Business Model that Brings
About Digital Transformation (DX)source of continuous income. Our standard service

for the purpose of data utilization. In other words, weperiod is an annual contract. As a result, it is relatively

believe that the services provided by our Group caneasy to forecast future business performance, and webe positioned as either the gateway or the center ofcan expect our business model to achieve steadyan ecosystem made up of an array of business tools.

Offering Services that Solve Business Challenges for
Companies and Individuals

Another major common characteristic of ourhave faced the need to implement systems forservices is that they have the property of being aworking from home and enhance their operating

business platform that makes effective use of various

infrastructure. In addition to these efforts to enabletypes of business information which has been

diverse working styles, a further pressing issue for

accurately converted into data. Each service is cloud-companies is the need to raise productivity by revisingbased, and basically designed so that various functions

inefficient workflows. There is also growing public

can be used by all business people in a range ofinterest in DX and SaaS businesses, and in harnessing

situations, regardless of industry or sector, time ordata effectively to create new growth opportunities.

place. The purpose of their use is rooted in fundamental

Faced with these social issues, the Group is striving tobusiness needs. The model is based on autonomously

provide services that bring about DX by facilitating

accumulating business data, including business cardchanges in the way companies and individuals work in

information, and building up a database as thea variety of areas.

Stronger sales,
marketing capabilities

Dramatically enhanced
business flow

Amid the COVID-19 pandemic, many companies

02
Business Strategies to Increase
Corporate Value

Promoting DX

growth.

01
A Story of Value Creationthat combines “cloud software” with “a structure for

03

Higher asset value andusefulness of various data

Realizing diverse
working styles

Greater user
productivity

The Structures Underpinning
Sustainable Growth“Sansan” Use Case Study (Logistics Company)
The user was a company that had been facing challenges with its analog sales process. In the effort to build
a marketing function from scratch, “Sansan” enabled the company to strengthen its sales and marketing
capabilities. By combining “Sansan” with owned media and marketing automation tools, the company wasable to digitize its customer contact points and conduct data analysis. The outcome was a 15-fold increase ininquiry volume compared to the volume before the introduction of “Sansan.” Visualization of the company’ssales activities also yielded significant results, including enabling a more timely response to customer issues.
Sales staff reported a range of benefits from the service, including enabling them to broaden the scope of
their proposals and deepen their relationships with customers.

DATA
TECHNOLOGY“Bill One” Use Case Study (Consumer Goods Manufacturer)

A Shared Business Model

18

The business models of the Group’s main services

companies and individuals who use them. Our

share many similarities. The services we provide inservices help improve productivity, boost work

fields such as business cards, invoices, and contracts

flexibility, and ultimately bring about DX. In developing

are designed to overcome business challenges for thethese services, we have adopted a unique method

Sansan, Inc.

Having noticed inefficiencies arising from its paper-based invoicing operations, the company used “Bill One”
to drastically improve its existing workflow, enabling a diversity of working styles. The company had been
receiving most invoices on paper due to preferences of its clients. The internal payment approval flow had
led to the duplication of system- and paper-based forms. The introduction of “Bill One” enables all invoices
to be received online, and the entire workflow, from confirmation by the person in charge to approval of
payment, can be centrally managed on the system. This has enhanced operational efficiency. In addition,
since it is no longer necessary to go to the office to process paper invoices, the company is able to promote
remote work.

ANNUAL REPORT 2021

19

02_Business Strategies to Increase

01_A Story of Value Creation

Corporate Value

03_The Structures Underpinning
Sustainable GrowthCompetitive Advantages

01

Structures and Technologies that enable Highly Accurate Data Processing

Strong Competitive Advantages Built up as a Market
Pioneer

AI and Image Recognition Technology“DSOC OCR”

We use a range of image recognition
technologies and AI that we have developed
independently to digitize business cards athigh speed with high accuracy.

We are developing and researching theapplication of our unique OCR technology to
all business cards, to automatically digitize email
addresses with an accuracy of over 99.7%.

A Story of Value Creation

Competitiveness as the Source ofValue Creation“GEES” Digitization System
This is our unique operation system,
which digitizes a large volume ofbusiness cards securely, accurately,and efficiently.

Strong Brand Recognition of “Sansan” in Japan
The “Sansan” service has secured a high level of02

recognition among B2B services in Japan. This is due inpart to TV commercials we have aired continually sinceBusiness Strategies to Increase
Corporate Value2013 to raise awareness of our service. The
correspondingly high level of recognition the Company
has earned as a whole has been a major asset as we

Digitization Operation with 99.9% Accuracy

work to ensure the reliability and security of the various
services provided by our Group. Our 9th TV commercial
aired in August 2021 (image at right).

In our service, we digitize a wide variety of analog

necessary to complement digitization accuracy withinformation, such as business cards and invoices, by

manual input. The Group is building an operation tocombining AI technology that evolves through machine

convert large volumes of analog information into data

learning with manual input. Although automatic data

accurately, quickly, and at low cost. This involves boosting

conversion using optical character recognition (OCR)

the ratio of automatic digitization by means of AI researchtechnology is commonplace, it is not yet possible to achieve

at its R&D organization, while creating a flow that efficiently

99.9% accuracy with any OCR system. This makes it

Since our founding in 2007, we have pioneered the

combines the power of hundreds of thousands of operators.

focusing on maximizing consolidated sales as a key

market for cloud-based contact management

growth strategy. As part of this strategy, we have beensolutions for businesses. By providing services as aworking to strengthen our sales departments throughmarket leader, we have accumulated a high level ofmeasures such as recruiting and training personnel,

marketing and sales expertise related to SaaSand continue to refine our expertise.

Prompt and accurate digitization of a large volume of business card information+
Scan large volumesof business cards

AI: Data entry Human: Manual entry

Human: Final check

Automatic and manual data entryof business card images

Automatic detection ofbusiness card language

Automatic sorting tooperators

business in Japan. Since fiscal 2018, we have been

Dominant Market Position Backed by Strong Competitive Advantages

Database

The “Sansan” and “Eight” services provided by the Group have achieved the No.1 position in Japan in key
indicators such as sales and user numbers.

Cycle repeated since theCompany’s foundation

Combination of Technologies
Automatic detection andmicro tasking ofbusiness card information

Domestic B2B SaaS Monthly Sales (MRR)*1
Diverse network ofdata entry operators

Image processing
technology(Millions of yen)

1. Scan or Photograph

2. Image Processing

3. Item Classification

4. Segmentation

5. Data Entry

Using a dedicatedscanner or smartphone
application, a user
scans or takes aphotograph of abusiness card. The
captured business card
image is sent to ourdata center.

The business card
image is processedusing image processing
technology. The
background is correctedby whitening or otherimage correction
processes to make thetext stand out, making iteasier to read.

Clusters of characterson the business card
are automatically
identified and classified
into various categories
such as company
name, first name, title,
email address, andcompany logo.

Since the classified items
include first and lastnames, phone numbers,
email addresses, andother personal
information, for security
reasons, the images
undergo a segmentation
process that renders them
unusable as information.

Each fragmented item
is automaticallyentered using machineprocessing. If the datacannot be confirmed
by machine-based
automatic input, it isentered manually.

Sansan, Inc.

Domestic Professional Social Network
Monthly Active Users*2

1,251
Company A

20

03
The Structures Underpinning
Sustainable GrowthBusiness Card Digitization Flow

Strong Marketing and Sales Organization

Company A

Company B
Company C
Company D
Company E

One of the highest
levels of B2B SaaS
sales in Japan

Company B

Company C

Highest volume ofprofessional social
network users inJapan*1 “Sansan” shows monthly sales of the Sansan business in May 2021 (unaudited); MRR indicates monthly recurring revenue.
*2 Average number of monthly active users, domestic business SNS apps, January–December 2020 (App Store + Google Play), January 2021, App Annie research

ANNUAL REPORT 2021

21

01_A Story of Value Creation

02_Business Strategies to Increase

Corporate Value

03_The Structures Underpinning
Sustainable GrowthIntellectual Capital

01

Supporting Business Growth with Data Research

Taking on a Wide Array of Business Data andCreating New Value and Competitive Advantage

into a shared data research organization. Further, in July 2021,

development organization that specializes in handling data,

we reorganized not only the data research organization but

as well as dedicated development organizations for eachalso the development organizations for each service underservice. The data research and development organizationa single cross-sectional headquarters, consolidating engineering

has two functions. One function is to conduct R&D in areas

functions that had been dispersed throughout the Company.

close to existing services, such as the operational process of

The goal was to build a robust technical organization that will

digitizing analog information, which is a competitiveenhance our technical capabilities and use our R&D resources

advantage. The other function is to research the creation ofeffectively. This will enable us to create multiple products

new data-based businesses. At the time of Sansan’s founding,simultaneously as we expand our business domains beyond

each of our businesses had its own operations department

business card management to invoices, contracts, businessfor digitizing business cards. As each service grew, however,

events and seminars. We also aim to hone the skills of ourthese operations could not keep pace with rising demand

engineering personnel, providing opportunities to grow byfor business card digitization. As this presented an obstacle toexperiencing a range of product development, and building

business growth, we subsequently consolidated the departments

our organization into one of Japan’s leading engineering groups.

business. As the data we handle expands in this way, we are

As a result of that effort, the ability to digitize analog information

keenly aware of the importance of using of data to provide

with 99.9% accuracy has become a core competence ofvalue. We have thus organized the roles of our data research

our group. Today, the data we interact with is not limitedorganizations into three categories: data generation, data

to business card information, the evidence of an encounterorganization, and data utilization. The first involves generating

between people. It also includes business information suchdata from analog information collected in business. The second

as personnel changes and corporate news, as well as theinvolves organizing that data by normalizing and enrichingbusiness documents, such as invoices and contracts, which

it. The third category focuses on utilizing the data.

Data Generation

Data Organization

Data Utilization

Before data can be utilized, businessinformation must be digitized accurately.
However, analog information on abusiness card consists of a variety ofdesigns and formats. Accurately
converting that information into datausing only machines ushers in a host oftechnical challenges, such as ensuringconsistent image quality regardless ofthe environment in which the image iscaptured. To ensure accurate andefficient data conversion, we havecombined our proprietary AI andimage recognition technology withmanual data entry operations. The
outcome of continuous data
generation has been a dramaticincrease in the ratio of machine-based
digitization. Today, the cost of data
generation per business card is lessthan a tenth of what it was when the
Company was founded, while thespeed of data generation has
increased tens of thousands of times.

Digital transformation continues toraise expectations for companies touse a variety of business data.
However, major obstacles remain
when it comes to companies
effectively using the data they haveaccumulated in their databases. For
example, some information may be
incomplete due to out-of-datecompany names or missing entries. In
other cases, the data may bescattered across various business toolsthat were introduced over time. We
have developed technology that
normalizes and updates data, enriches
it by adding on a variety of
information, and organizes it as afoundation for effective business use.
For example, with “Sansan,” if thename of a company in the digitizeddata changes, it can be updated.
Using the business card information,
the new company information is thenadded to the database.

The data research organization
conducts research into issues thatarise in business. It provides new value
to users by effectively integrating theaccurate databases generated by our
various services. For example,“Sansan” provides “Sansan Labs,”
which includes features for optimizing
sales activities and for effectively using
the knowledge and personalconnections of people within acompany. In addition, with theobjecting of providing administrative
support for the revitalization anddisaster recovery activities of regional
governments, we are using the “Eight”
business network to research“business-related population,” anoriginal index we developed tomeasure the degree to which businesspeople in one region are engaged
with those in other regions. We also
carry out R&D to support government
agencies. (see p. 49)

02

03
The Structures Underpinning
Sustainable Growth

The Group’s technical organization includes a research andbusiness card information rapidly, accurately, and at low cost.

Business Strategies to Increase
Corporate ValueOur Technical Organization—Past and Present

are the evidence of encounters between companies doing

A Story of Value Creation

R&D as a Source of Competitive
Strength

Since our founding, we have worked relentlessly to digitize“Sansan Labs”: Shaping the Business Scene of the Future

Talented Engineering Personnel
In its approach to hiring, the Group’s technical organization
places a high priority on diversity. As a result, we havespecialists with diverse backgrounds and expertise,

With the “Search Internal Knowledge” feature, users can search for colleagues who have knowledge in a
specific industry or field by simply entering keywords. Or they can search on a colleague’s name to check
what knowledge they have. This feature can be used to select project members and gather information
within a company. There is also a “Hot Lead Recommendations” feature that supports sales activities by
displaying information such as key persons in sales call destinations from registered business cards.
Search Internal Knowledge (β)

Account-Based Marketing (ABM) Dashboard 3(β)

whether new graduates or mid-career hires. For example,
we have data scientists in the Company who are active
on Kaggle*1 and PhD holders. In terms of fields of expertise,
we have engineers who specialize in image processing,machine learning and data science related to digitization
operation, as well as researchers in humanities fields
such as social science and economics.

Construction
Trading company

FinanceTechnology
System development
Market research

KansaiBusiness
Management

AI

5

Planning
Sales
SectionManager

Head ofdepartment

Officer*1 Kaggle is an online community of data scientists and machine learning
practitioners in which data scientists from all over the world compete to create
the best models for solving data science challenges. About 10 Japanese people
are ranked as Kaggle Grandmasters.

22

Sansan, Inc.

ANNUAL REPORT 2021

23

01_A Story of Value Creation

02_Business Strategies to Increase

03_The Structures Underpinning
Sustainable Growth

Corporate Value

Human Capital

01

Unique Employee Empowerment

Instilling Our Corporate Culture and Maximizing theAchievements of Each Employee

its talent. Communication between employees is vitalaiming to increase employee productivity.

for sustaining that growth. For this reason, we have

Promoting Greater Understanding of Sansan and Fostering Lively Internal Communication“Katachi” Discussions

Sansan Values Star Award

We regularly provide venues for all employees to discuss the corporate
philosophy. Because everyone addresses our values and culture
together, these are crucial opportunities from the perspective of
employee development and productivity improvement.

Using “Unipos,” a service for peer evaluation and commendation, we
have a system for employees to send praise to each other along withoffering a small tip. We set aside occasions to give awards to employees
who embody our values and receive the largest number of tips.

Know Me

Sansan TV

We have set up a system to subsidize food and drink expenses
when three employees who work in different departments havea meal together. The program contributes to stimulating internal
exchanges and improving the quality of each employee’s work.

To promote greater understanding of Sansan and foster more
lively internal communication, we broadcast a video content versionof the internal newsletter that summarizes various internal
initiatives and features interviews with successful employees.

02
Business Strategies to Increase
Corporate Value

A Mission-Driven Corporate Culture

been taking steps to improve our working environment,

A Story of Value Creation

Structures to Support the Growthof Our People and Our Business

An organization grows by absorbing the expertise of

Knowledge Acquisition and Skills Improvement

We want all our employees to continually maximize theirachievements based on a firm understanding of and alignment
with our mission and vision. We see this as essential for realizing
the Group’s corporate philosophy and accelerating businessgrowth. With this in mind, we create opportunities to discuss

Coacher

Ocean

With the aim of improving employees’ business skills, we have
put in place a system that allows employees with specialized
qualifications in business or educational coaching to provide
one-on-one coaching.

This system subsidizes costs associated with language learning,such as lessons with school instructors and the purchase of reference
books. In this way we are supporting employees who need tolearn English or Japanese, an important initiative as we develop
our overseas business and hire more foreign employees.

our values internally. All employees consider together what
our values should be and how we should uphold them to03

Enabling a Variety of Working Styles

realize the Group’s mission and vision. Continually reviewing

Flextime System for Engineering Staff

give us a crucial opportunity as a company not only to foster

This is a system that allows employees to choose to work from home, up to acertain number of days per month. The ability to flexibly combine the working
styles of office and home will lead to increased work productivity.

Every employee can freely adjust their daily starting and quitting
hours within the designated total working hours. This enables avariety of working styles and improves work productivity.

employee growth but also to strengthen the organization.

KISS

MOM

This system subsidizes the cost of babysitters and housekeeping
services to support employees who need to balance work andchild-rearing.

This system fully subsidizes nursery fees and also subsidizes taxi
fares for child drop-off and pick-up. We also actively encourage
employees who have taken maternity or childcare leave to return to work.

to think about the actions they should take. Such discussions

Through these discussions, we have instilled a missiondriven corporate culture throughout our organization.

The Structures Underpinning
Sustainable Growth

Telecommuting System

our corporate philosophy in this way encourages every employee

A Talented and Diverse Workforce
The growth of the Group has been supported by our talented
workforce, which totals nearly 1,000 employees. Throughout
our organization, in functions ranging from development

Number of Employees (each fiscal year ended May 31)(persons)954

to sales and back office, our teams are made up of people
with diverse specialties and backgrounds. At Sansan, we value713

our corporate philosophy and the mission-driven corporate549

culture we have developed since our founding. One of themost important criteria in the hiring process is whether acandidate matches these ideals. Past experience with hiring

402

Yuta Ohma

305

Director, Executive Officer,
CHRO

has borne this out. The more a candidate matches our ideals,
the easier it is for our corporate philosophy and the individual’s
ambitions to align. This in turn makes it more likely that thecandidate will contribute meaningfully after being hired.

24

Sansan, Inc.

2017

2018

2019

2020

Sansan started out with just five members. Now in our 14th year, as of the end of
May 2021, the consolidated number of employees had grown to 954. One of our
key management strategies has been to attract strong talent. That is how weachieved such dramatic growth while creating a new market for cloud-based
contact management solutions for businesses. Based on this strategy, over theyears we have worked to strengthen our recruiting activities. As a result, we havebeen able to hire many talented people who match our mission-driven corporate
culture. This strategy remains unchanged today, as we continue to accelerate
our expansion into new business fields. To continue attracting talented people, wewill inculcate our corporate philosophy across the Group while also working toestablish systems to support a more diverse workforce, including empowering the
career advancement of female employees and hiring foreign employees. We
are committed to continuing to support each and every employee so that they
can maximize their achievements.

2021

ANNUAL REPORT 2021

25

02_Business Strategies to Increase

01_A Story of Value Creation

Corporate Value

03_The Structures Underpinning
Sustainable Growth

Opportunities and Risks

01

Initiatives to Guarantee Security

A Story of Value Creation

Initiatives to Provide Safe Services

Pursuing Opportunities while
Dealing with Risks
We Take Every Possible Means to Minimize Security Risks
while Pursuing a Broad Array of Business Opportunities.

We also provide a variety of security functions thatout service vulnerability diagnostics either through aenable users to use our services safely and securely.

third-party agency or an in-house team of specialists.

Two-Factor
Authentication

Link to Active
Directory

IP Address
Restrictions

Access Control

Usage Log
Download02

Cacheless Mode

Business Strategies to Increase
Corporate Value

Digital Transformation (DX) Is Opening Up Vast Business Opportunities

To offer safe services to customers, the Group carries

Data Protection Initiatives
Since the Company was founded in 2007, we have had inmonitor various key data around the clock, year roundby fully leveraging the latest security technology. Also,

Our Group provides various cloud-based services that

Often in the development of cloud-based services,

place a Personal Information Protection Management

make use of data. While awareness of DX is increasing inconvenience and security come into conflict. We believe

System (PMS) as a measure to protect data, establishing

we test the security level of the system by hiring white

Japan, the fact remains that most companies have not beenthat for the growth of the Group, however, it is critical toan environment to deal with the protection of data

hat hackers from outside agencies to intentionallyable to fully take DX on board. Each business field still

maintain the best possible balance between the two

within the company. We have also built a system that can

carry out cyberattacks, and shore up any weaknesses.

seems to have its fair share of inefficient workflows. We

elements. The premise of our corporate philosophy is

see this climate as presenting major business opportunities“Balancing security and convenience.” We pursue every

for us, a tailwind serving not only to help expand thepossible measure to ensure that users can take advantage

Group’s existing services but also to help develop newof each of our services safely and securely. So, whileservices that draw on our strengths, the technologies andkeeping a close eye on security risks, we are pursuingexpertise we have cultivated over the years.

and increasing the convenience of each service.

03

Thorough Employee Education on Information Security
addition, we have rigorous procedures for handling

Individual Information Person qualifications. If they do not

personal and confidential information, with a specialized

pass the exam after a certain period of time, in principle,

department conducting internal audits of information systems

any salary increases will be put on hold until they do. In

and the privacy protection practices of each employee.

The Structures Underpinning
Sustainable Growth

It is mandatory for all employees to acquire Protection ofPrivacy Protection and Information Security Measures
The services provided by the Group offer various

to minimize risk. In our security system, in order to befunctions to manage information such as businessable to respond quickly and in all directions to privacy

cards for corporate and individual users. We positionand security risks, executive officers themselves

the handling and protection of personal information

assume the roles of CISO*1, DPO*2, and Personaland other vital information assets as our most critical

Information Protection Managers. We have also set

management concern. Having formulated policies forup a CSIRT*3, a department specializing in information

the protection of personal information and for
information security, the Group rigorously manages
information assets and takes every possible measure

26

CISO

DPO

Has responsibility andauthority for the security andrisk management of
information systems.
Oversees information security
risk measures andmanagement methods.

Main role is to monitor
compliance with the EU
General Data Protection
Regulation (GDPR). Oversees
the organization’s
management activities
regarding data protection inaccordance with legal
regulations.

Sansan, Inc.

security across the Group.
*1 Chief Information Security Officer*2 Data Protection Officer*3 Computer Security Incident Response Team

Personal Information
Protection Managers
Supervise the status ofcompliance with guidelines
established by the Personal
Information Protection
Commission, manage
implementation and operationof the personal information
protection management system.

CSIRT
An organization that gathers
information on events thatmay pose a threat to
information security andsystem vulnerabilities,
monitors signs of cyberattacks
and other risks, andformulates response
measures and procedures.

Satoru Joraku
Executive Officer, CDO, CIO,
CISO, DPO

Since our founding, we have taken the handling of information assets to be
our most critical management issue. When the Company started, all employees
could fit in the same room, so there were no issues with having rules that
relied on people’s basic honesty. Now the Group has close to 1,000 employees.
To ensure the safe, secure operation of our services, stronger risk measures
are needed to create an environment where employees can concentrateon their work. In particular, we have embraced the concept of “zero trust,”
which is based on the premise that “nothing is trustworthy by default.”
Specifically, we have introduced a protection system for each terminal anda fraud detection mechanism based on user behavior, adjusted for remote
work and various other working styles. We have also implemented andreinforced a system to strictly limit access permission for highly confidential
databases. While we had already been conducting security monitoring ofeach product, we have now created a log infrastructure to enable
integrated monitoring. Going forward, in addition to enhanced security
monitoring operations and early detection of vulnerabilities, we will work
to build a risk management system into our new business framework.

ANNUAL REPORT 2021

27

01_A Story of Value Creation

02_Business Strategies to Increase

Corporate Value

03_The Structures Underpinning
Sustainable Growth

CFO Message

01

Financial Strategies for Further Growthover the past 12 months has been well below 1.0%. Since

responsively and flexibly to capture growth

this service operates on an annual subscription basis,

opportunities. Consequently, I recognize that having afuture business results are relatively easy to forecast,sound financial structure is critical in terms ofand its business model is expected to demonstrate

management strategy. We have so far succeeded insteady growth. Going forward, we will continue tobuilding a stable foundation, largely buttressed by theallocate investments appropriately across the business

Sansan business, which accounts for more than 90% of

portfolio, including in new services, to further enhance

consolidated net sales. This business has acorporate value. At the same time, by reinforcing

subscription-based fee model (monthly charges),financial monitoring and boosting productivity, we will

which offers a source of continuous income. Also

work to build an even stronger financial structure andunderpinning the financial structure is the low churnmaximize the sales growth rate.

02

Outlook for Fiscal 2021
In fiscal 2021 (the fiscal year ending May 2022),

up the challenge of 30% growth from fiscal 2022.

although we assume uncertainties in the businessSpecifically, while continuing to engage in Group-wide

environment will continue, we project that the growth

recruitment activities, chiefly in sales departments, werate of consolidated sales will accelerate, increasing

will step up marketing activities for “Sansan” that were

between 3.9 points and 6.9 points year on year. This

held back during the pandemic, as well as TV

reflects our expectations that each business will growcommercials and other advertising activities for thesteadily while the fallout of the pandemic will subside.

fast-growing “Bill One” service. In our efforts to

Although protraction of the pandemic has cast doubt

reinforce each service and expand the portfolio, weon the 30% growth in consolidated net sales we had

have positioned the use of acquisitions and various

originally forecast for fiscal 2021, we plan to implement

other investment opportunities as a key management

various strategies during the period to achieve strong

strategy, and will actively explore such opportunities

sales growth that will position the Group to again takewhile carrying out appropriate risk management.

03
The Structures Underpinning
Sustainable Growth

Director, Executive Officer, CFO

maximize the sales growth rate by investing

Business Strategies to Increase
Corporate Value

Muneyuki Hashimotorate for “Sansan,” whose average monthly churn rate

A Story of Value Creation

We aim to enhance corporate
value by building a soundfinancial structure and making
appropriate growthinvestments.

The Group is currently in the phase of seeking toOverview of Fiscal 2020 Results

28

Dialogue with Stakeholders

In fiscal 2020 (the fiscal year ended May 2021), the239 at the end of May 2021. As an initiative tobusiness environment in Japan continued to require

strengthen and expand the business portfolio, we also

extremely difficult navigation, with the impact of themade logmi, Inc. a consolidated subsidiary in August

Having obtained the approval of the Tokyo Stock Exchange,

COVID-19 pandemic going on longer than anticipated2020 and worked to further enhance the service value

on January 21, 2021 we changed the listing for the Company’s

and increasingly cautious corporate investmentof both companies. In May 2021, we formed a capitalstock from the Mothers section to the First Section of thesentiment. This notwithstanding, our annual recurringand business alliance with Unipos Inc., with a view toTSE. We would like to express our sincere gratitude to ourrevenue was up by 21.1% year on year to 16,137 million

future consolidation, and took other steps to expand

shareholders, investors, and other stakeholders who haveyen, one of the highest levels among SaaS companies

our business strategy options and future growth

supported us. Going forward, we will continue to put growth

in Japan. In addition, we were able to makepotential by actively pursuing investment

strategies in place that maximize consolidated sales andaggressive investments to accelerate the pace of sales

opportunities. I am aware that our ability to makedevelop various frameworks fitting for a company listed

growth, such as to reinforce recruiting and the sales

such aggressive investments in the midst of anon the TSE prime market to further enhance corporate

and development system, and in marketing activities.

adverse business environment and uncertainties overvalue. Moreover, especially in a business environment

In particular, for our newly launched “Bill One” service,

the pandemic stems from the combined fruit ofmade uncertain by the pandemic, we believe it is crucial

as a result of TV commercials and other advertising

numerous measures we have taken so far while

to actively disclose information and so will enhance bothactivities, the number of paid subscriptions continued

maintaining a stable balance between business

our financial and non-financial disclosure and work to

to rise briskly throughout the fiscal period, reachingdevelopment and financial soundness.

engage in highly trustworthy dialogue with stakeholders.

Sansan, Inc.

ANNUAL REPORT 2021

29

02_Business Strategies to Increase

01_A Story of Value Creation

03_The Structures Underpinning
Sustainable Growth

Corporate ValueBusiness Overview

01

Main B2B Services (Multiproduct)

Generating Synergies by Linking Multiple Products toMultiple Services

and business people work, in areas ranging fromhaving developed B2B services that advance digitalbusiness cards, invoices, and contracts to business

transformation (DX), changing the way companies

events.

Business Card

Invoice

B2B business card-based contact
management service

Business Alliance

Event/Seminar

Online invoice receiving solution

B2B seminar management system

Contract
Cloud-based contract digitization solution

02

Media that transcribes all documents

Business Strategies to Increase
Corporate Value

Risk Intelligence powered by Refinitiv/KYCC
Salesforce Opportunity Integration*1
CloudSign Contract Management
Contacts Analysis powered by MotionBoard
Survey Tool powered by CREATIVE SURVEY

A Story of Value Creation

Increasingly Diversified Business
Portfolio

We have built up a multiproduct business portfolio,*1 Salesforce is a trademark of salesforce.com, inc.,and is used with permission

Business Card Ordering/Printing

Two Reporting Segments

Business card ordering service

The Group’s business consists of two reporting

develops the “Eight” business card management app,segments: the Sansan Business and the Eight Business.

is pursuing the monetization of its network, one of the

The Sansan Business, which operates the “Sansan”

largest professional social networks in Japan, by

B2B business card-based contact management

offering a variety of fee-based services. In addition,

service, is a pillar supporting the growth of the Group.

we have been focusing on developing new services,

It accounted for approximately 90% of consolidated

among which the “Bill One” online invoice receiving

net sales for fiscal 2020. The Eight Business, which

solution continues to demonstrate strong growth.

Organizational Communications

Data Utilization

Peer recognition and bonus service *2

Data integration/utilization service*2 Service provided by Unipos Inc., a capitaland business alliance partner

Business Management System for Accelerating Growth
newly established product-based organization andaim of efficiently accelerating business growth. In

new Engineering Division and Business Division.

03
The Structures Underpinning
Sustainable Growth

We restructured our organization in July 2021 with theparticular, we expect to see positive effects from our

Results by Segment (each fiscal year ended May 31)
Net Sales

Operating Profit (Loss)(Millions of yen)
■ Sansan Business■ Eight Business■ Adjustment amount

4,839
175
4,663

7,324
279
7,044

16,184
13,362
1,078

1,604

(Millions of yen)
■ Sansan Business■ Eight Business■ Adjustment amount

10,206566

9,639

12,284

14,58330

Sansan, Inc.

-2,964-778-1,534-3,061

-3
2017

1,437

2018

2019

2020

2021

2017

2018

6,143

2,909
-1,212-894-2,546-3,142-732-4,673-846
2019Engineering Division

Business Division

The organization is built around ourmain products, which include“Sansan” and “Bill One.” Generalmanagers assigned to each productarea take responsibility for key tasks
such as business strategy planningand profit monitoring as well as
participating in business planning.
This framework gives each productarea the autonomy to pursue growth.

We have consolidated the development
departments and data research organizationsof each product into a single headquarters. This
will enable the effective use of R&D resourcesand development of skilled personnel. Each of
our engineering personnel will harness theirexpertise to support the growth of the businessand help us realize our mission. We aim forour technical organization to become one ofJapan’s leading engineering groups.

We have consolidated the sales andmarketing departments of “Sansan”
and “Bill One” and other products
into one headquarters. This will
enable us to allocate optimal sales
and marketing resources even more
responsively and flexibly to productswith high growth potential, which
will help accelerate business growthand lead to greater productivity.

736
757

4,794
960
-783
-955

Product-Based Organization

2020

Change in Reporting Segments
In fiscal 2020, our two reporting segments were Sansan Business and Eight Business. Sales related to newservices such as “Bill One” were allocated to each segment based on a fixed proportion, while the majorityof operating expenses were adjustments not allocated to either segment. Effective from fiscal 2021 (beginning
June 1, 2021), the Group has changed to having two reporting segments: Sansan/Bill One Business, and Eight
Business. Through this change, we aim to strengthen our business promotion and management system,
while making the Group’s business more transparent to capital markets.

2021

ANNUAL REPORT 202131

01_A Story of Value Creation

02_Business Strategies to Increase

Corporate Value

03_The Structures Underpinning
Sustainable Growth

Sansan Business

01

Future Strategies

Sansan Business Overview

Description of Service“Sansan” is a DX service that changes the way companies
and business people work by enabling a wide rangeof data use centered on technologies that can accurately

Basic Featureswith 99.9% accuracy the business cards users scan,- Cloud-based business card contact management(email delivery, capturing of email signatures,contact management, personnel change
information, internal communication tool)

generating a database with relevant organization and- Virtual Cards

digitize business card information. “Sansan” digitizes

contact information. In addition to allowing users tocard management tasks, it offers powerful features forusing data. The basic design centers on employees within
a company sharing business card data, which enables
the data to be leveraged effectively as a company asset
by visually representing previously hidden social networks
in the organization. As a business platform for solving a
range of business challenges, the service also offers
features that enable users to send and receive business

Optional Features- Data One- Sansan Meishi Maker- Risk Intelligence powered by Refinitiv/KYCC

share. We continue to achieve steady growth in thisprimarily through the following strategies.

market, as shown by indicators such as the number ofthe end of fiscal 2020. Nevertheless, the ratio of “Sansan”
users to the total workforce in Japan remains atapproximately 2%*3.
Increasing Subscriptions andMonthly Sales per Subscription

Building the Value of “Sansan” asa Business Platform

To drive growth in subscriptions, we are
stepping up recruiting activities aimed
at expanding our sales structure forlarge corporate users while also
strengthening our distribution structure
through regional expansion. At thesame time, to increase monthly sales
per subscription, we are working topromote more widespread use of theservice within user companies and toroll out optional features that provide
new added value.

Having drawn on OpenAPI technology
and pursued tie-ups with outsideservices, we are further enhancing
the “Sansan” service by providing
optional features that can aggregate
the various tasks and pieces of
information that are generated in thecourse of doing business. In this way,
we aim to build the value of “Sansan”
as a business platform for supporting
companies in their DX initiatives. (seep. 34)

Sansan Business Net Sales(Millions of yen)
■ Recurring Net Sales■ Other- Salesforce Opportunity Integration*1

cards online, as well as various optional features.

4,663
365
4,298

2017

Fee Model

Sansan Business
Operating Profit

14,583
12,284
1,114

such as the digitization of large volumes of business

all the employees in the user company. The monthly

cards stored on paper and onboarding support.

usage fee is made up of the license fee, calculated

Before introducing our basic plan, we offered a plan

based on the number of business cards digitized by thethat charged a fee based on the number of users

user company, plus the usage fee for optional features(number of subscription IDs). A certain number of user

and the scanner rental fee. The license fee is based, notcompanies still subscribe to this plan. This plan is foron actual data volume generated each month, but on

limited use by a specific department within the user

an estimate of annual data volume. When the service

company. Both plans are based on annual contracts.

03
Market Share*2

6,143(Millions of yen)

783

4,794

Sansan7,044
678

13,80011,169

6,365

2018

83.5%

2,909

1,437

8,591

2019

960

2020

2021

2017

Number of “Sansan” Subscriptions andMonthly Sales per Subscription*4

For our basic plan, we provide a plan that is used by

Although the COVID-19 pandemic hasbrought about an increase in online
discussions and meetings, this has
made it impossible to exchange
business cards face-to-face. This has
given rise to the problems of notknowing people’s names or who thekey person is in meetings. The “Virtual
Cards” function is a solution to suchproblems, which is helping to support
new ways of working and enhance thevalue of our services.

9,639
1,047

- CloudSign Contract Management*1 Salesforce is a trademark of salesforce.com, inc., and is usedwith permission

02

Expanding Use of “Virtual Cards”

Sansan Business Results (each fiscal year ended May 31)- Survey Tool powered by CREATIVE SURVEY- Contacts Analysis powered by MotionBoard*2 “Latest trends in business card management services and sales services [SFA/
CRM/online business card exchange],” December 2020, Seed Planning, Inc.
*3 Denominator calculated based on the 2016 Economic Census of Activity(Statistics Bureau, Ministry of Internal Affairs and Communications); nominatorcalculated based on the total number of “Sansan” subscriptions and IDs.

“Sansan” user IDs, which was up 35% year on year at● Monthly sales per subscription

2018

7,744

■ Number of subscriptions

2019

2020

2021

Average Monthly Churn Rate over Past 12 Months
for “Sansan”*5

6,754
5,823
5,147
4,541

*4 Monthly results for theend of each fiscal-year
month in the Sansan
Business (including somenew services other than“Sansan,” unaudited)

The Structures Underpinning
Sustainable Growthspend significantly less time on inefficient businessof room for growth, and are targeting such growthBusiness Strategies to Increase
Corporate Value

With its Origins in the Digitization of Business Card
Information, a Digital Transformation (DX) Service
that can Change the Way Companies and Business
People Work.

management solutions for businesses, with an 83.5%*2

A Story of Value Creation

We believe, therefore, that our services have plenty“Sansan” leads the market for cloud-based contact

About
170,000 yen

0.68%

2017

2018

2019

2020

2021

2018

0.63%
0.60%

0.79%

About
109,000 yen

2017

0.95%

2019

2020

2021

*5 Ratio of decrease in monthly fees associated with contract
cancellations to total monthly fees from existing “Sansan” subscriptions

is introduced, we offer additional services for a fee,

32

Sansan, Inc.

ANNUAL REPORT 2021

33

01_A Story of Value Creation

02_Business Strategies to Increase

03_The Structures Underpinning
Sustainable Growth

Corporate Value

Sansan Business

01

Tie-Up between Various Operations

Delivering Value as a Business Platform that Solves a
Wide Range of Business Challenges“Sansan” is more than just a tool for business carduse, as well as highly compatible with cloud-based

management. The service also offers numerous otherservices that continue to find increasing use among

features, ranging from sales and marketing optimizationcompanies. “Sansan” is therefore a service that meetsto compliance enhancement. The many features thatmany of the criteria needed for a business platform.

have been added to the “Sansan” service and are

By pursuing both in-house development andused by customers stem from the accurate customer

collaboration with outside partners, we will expand

database that has been built up through the main

the optional features that can be used in connection

business card management function. The accuratewith “Sansan” and reinforce its development as acustomer information is highly scalable for businessbusiness platform.

related to antisocial forces and other compliance data

operations on “Sansan.” Our aim is to connect thesimply by scanning a business card. This helps prevent

accurate customer database of “Sansan” with otheroversights and significantly reduces the workload ofoperations, enabling greater efficiency andcompliance personnel. Other functions include theoptimization for a range of operations. To add theseability to verify contract information on “Sansan,”optional features, we are not only carrying out

conduct questionnaires required for seminars

development in-house but also strengthening

integrated with “Sansan,” and ascertain “Salesforce”*1

integration with the services of outside partners. One

business negotiation information along with internal

example is “Risk Intelligence powered by Refinitiv/

network and business partner information.

“Risk Intelligence powered by Refinitiv/KYCC”“Survey Tool powered by CREATIVE SURVEY”

02
Business Strategies to Increase
Corporate Value

From Business Card Management to a Business Platform that Helps
Companies Solve an Array of Business Challenges

KYCC,” a function that allows users to check data

features that enable the consolidation of various

A Story of Value Creation

How “Sansan” Brings About DX

We are working to enhance and expand optional

SansanAutomation ofantisocial forces
check

Creation ofconfirmation lists

API integration oflists“Salesforce Opportunity Integration” *1

Seminar visitor information,questionnaire results“CloudSign Contract Management”

Scan of business
card

Viewing contract
information on“Sansan”“CloudSign”
contract
information

The Structures Underpinning
Sustainable Growth

Possible to ascertain“Salesforce” businessnegotiation information

03

SansanSalesforce“Sansan” internal
network, business
partner information“Sansan” business card
contact management

Data Integration*1 Salesforce is a trademark of salesforce.com, inc., and is used with permission

The customer information companies accumulate is often“Data One”

either incomplete due to factors such as omissions in inputting
or fragmented due the database being managed bymultiple tools. Situations like these pose a major challenge
to the effective use of data. “Data One” organizes
databases by cleansing, integrating, and enrichingNameidentificationenginedata that user companies have accumulated to date,

Integrated, enrichedcustomer dataand can also create sales lists from the organized data.

Business Card Creation and Ordering“Sansan Meishi Maker” is a service that makes it easy to“Sansan Meishi Maker”

Kei Tomioka

create and order business cards. In addition to enabling
the more efficient creation of business cards, customers
register the master data of their own cards on theBusiness card master creation“Sansan” service, which can then be used as their Virtual
Card. We believe that promoting the use of “Sansan
Meishi Maker” will feed into expanding the use of“Virtual Cards,” a key aspect of our business strategy.

34

Sansan, Inc.

Use as “Virtual Cards”

Director, Executive Officer, CRO,Managing Executive (Business
Division), General Manager of
Sansan Unit

Our overriding focus in the Sansan business is on addressing the potential
business challenges of our customers. The first step in doing this is to identify
those issues. Then we create ways of delivering the proper functions to solve
them. This is a powerful process for evolving our product. The corporate
reorganization we undertook in July 2021 was the biggest change in the Group’s
history. It involves a strategy for truly evolving “Sansan” by uniting the sales
and product organizations, the front-line contact points for customers. As a
specific initiative, for example, we work with small and medium-sizedcompanies that are struggling to manage their business due to the pandemic.
We are helping them to move beyond customer contact management intoa realm of deeper data utilization where they can find prospective customers
easily. For large corporations that need to address compliance risk issues,
we will enhance the value that only “Sansan” can provide, such as by helping
to strengthen governance by offering a system that automatically detects
fraud risks. Just as “Sansan” opened up the contact management market, it
has the power to change the way companies work. Through our services,
we will enable DX and deliver new value to the market.

Use for printing paper business cards

ANNUAL REPORT 2021

35

01_A Story of Value Creation

02_Business Strategies to Increase

Corporate Value

03_The Structures Underpinning
Sustainable Growth

Eight Business

A Business Card Management App Enabling Contact
Information to Be Used Effectively as a Professional
Social Network

Business Card
Management
Service“Eight Company
Premium”

Fixed monthly fee(annual subscription)

This is a service that allows companies to manage their businesscards using “Eight.” Mainly geared toward small businesses, it isdifferentiated from “Sansan” both in terms of its target users
and features.

Advertisement
Service“Eight Marketing
Solutions”

Pay-for-use charges
based on delivery volume*1(fixed-term subscription)

This is a service that enables distribution of advertisements to“Eight” users via the app timeline.

“Meets”

Fixed fee*2(pay-for-use charges)

This is an event service that addresses challenges such as
acquiring business leads by enabling companies to optimize
the way they attract customers.

“Climbers”

Fixed fee*2(pay-for-use charges)

This is a large-scale event service that enables a variety of PR
and marketing activities targeting the young business people
and executives who participate.

“Eight Career
Design”

Fixed monthly fee*3(fixed-term subscription)“Eight Career Design” is a recruiting platform that companies
can use to approach “Eight” users.

Business Events

Recruiting
PlatformBusiness Strategies to Increase
Corporate Value

Unlike “Sansan,” which is used through a corporate

information is updated. The app also features “Virtualsubscription, “Eight” is a business card management

Cards.” By bringing together all of these features,app whose basic design is geared toward individuals.

“Eight” maximizes the use of business encounters that

Users need only register their own business card

individuals have accumulated as assets and also

information to use its basic features for free. As aserves as a business platform to help business people

basic feature, users can manage their business cards

solve the problems they face.

on “Eight” using the dedicated app, simply by taking
pictures of business cards they have collected using a
dedicated app. The app also offers a feature which

Basic Featuresby adding their own previous business cards and- Profile managementof a business card saved to “Eight” is also an “Eight”
user, both users can connect with each other on theapp, which also functions as a professional social“Eight” is Japan’s leading business card management

free of charge. To target future earnings, we areapp and professional social network*4. It has a large

focusing on augmenting monetization of B2B services.

user base, which we are working to expand further.

*4 “Average number of monthly active users, domestic business SNS apps, January–
December 2020 (App Store + Google Play),” January 2021, App Annie research

The overall business is in a phase of upfront

03- Messaging feature- Social network- Notifications about updates to contacts’ business cards- Business news
- Virtual Cards

network. This allows the use of a variety of network- Virtual backgroundfeatures, such as exchanging messages between- Event information

users and receiving notifications when business card

Fee Model

Expanding Use of “Eight ONAIR”

Expanding Use of “Virtual Cards”

We are working to expand the use of“Eight ONAIR,” launched in May 2021.
By consolidating an array of businessevent information on the “Eight ONAIR”
platform, we will raise user awarenessof “Eight” as a highly convenientservice, and attract new users
previously difficult to reach. We also
expect to increase the active user rateof the “Eight” service by targeting
existing users who do not frequently
access the app, which was previously
intended for business cardmanagement.

To further expand use of the “Virtual
Cards” feature, “Eight” released a
virtual background with QR code*5 in
May 2020. In addition, in August 2020,
we enhanced the connectivity with
“Sansan” to enable smooth online
business card exchange between“Sansan” and “Eight” users. We arealso actively working to create
opportunities for use in conjunction
with business events.
*5 QR Code is a registered trademark of DENSOWAVE INCORPORATED

Augmenting Monetization of B2BServices

The Structures Underpinning
Sustainable Growth- Business card management

details such as work experience and skills. If the owner

Future Strategies

investment, with basic features provided to individuals

enables users to manage their business career profile

In tandem with augmenting monetizationof our existing B2B services, we are also
working to develop new services. Our
second “Climbers,” a new business eventfor young business people, attracted thelargest number of entries of any event
we have hosted to date. In August 2020,
the Group acquired shares of logmi, Inc.,a company that operates transcription
media for seminars and events, making
it into a consolidated subsidiary. We now
operate logmi as part of the Eight Business,
and we are strengthening this businessas one of our main B2B services.

Eight Business Results (each fiscal year ended May 31)

While the basic features of “Eight” are available freecard management, we also provide a variety ofof charge, it also offers a premium service forpremium services that use the “Eight” network.

individuals. For businesses, in addition to business

Eight Business Net Sales(Millions of yen)
■ B2C services■ B2B services

1,604
1,078

B2C Services (premium service for individuals)

Sansan, Inc.

02

*1 There is a minimum ad placement fee and also a normal advertisement menu. *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.

Description of Service

36

A Story of Value Creation

Eight Business Overview

Business cardmanagement
service01

B2B Services (premium service for businesses)“Eight Premium”

Fixed monthly fee

Eight Business Operating Loss

Number of “Eight” Users*6(Millions of yen)

(Million people)-783-1,212

1,307

This service allows the use of optional features such as
downloading business card data or digitizing all items ofbusiness cards.

175
33

279
85

566

-894

-732

1.69

2.14

2.44

2.70

2.92

786

328

-2,964

142

193

237

291

296

2017

2018

2019

2020

2021

2017

2018

2017
2019

2020

2021

2018

2019

2020

2021

*6 Number of authenticated users who registered
their business card in their profile after
downloading the app

ANNUAL REPORT 2021

37

02_Business Strategies to Increase

01_A Story of Value Creation

03_The Structures Underpinning
Sustainable Growth

Corporate Value

Eight Business01

Network-Based Monetization Plan Unique to “Eight”

A Business Platform that Creates New Encountersfrom Personal Business Connections

user rate, but its network is distinctive in that profile

leveraging the network to create various B2B services,

information registered by users is generated from theirsuch as advertising, business events, and recruiting services

own business card information. This means the network(see p. 37), with a view to augmenting monetization.

Initiatives to Enhance Network Value“Eight” has been able to constantly expand the user

user base and improving the active user rate. Thebase without incurring sizable user acquisition costs.

Group is currently working on the development andGoing forward, however, further enhancing thedelivery of new services and functions to support the

network’s value will necessitate further expanding theachievement of these goals.

“Eight” is a business card management app thatthe number of “Eight” users had grown to more thanfocuses on consolidating people’s business2.9 million as of May 2021. It has evolved beyond aconnections as information and managing them asbusiness card management app to become theassets. We have been expanding its features since its

Launched in May 2021, “Eight ONAIR” is a highly

professional social network with the highest utilization

expand the number of events posted. In this way, we

launch in 2012. Specifically, by adding messaging,rate*1 in Japan.

convenient service both for event participants andexpect not only to increase the active user rate amongorganizers. Participants can discover the mostexisting users, but also to help acquire new user

relevant event information for themselves from thegroups that were difficult to reach so far.

profile, and “Virtual Cards” features, we havecultivated “Eight” from being an app for simply storing*1 “Average number of monthly active users, domestic business SNS apps,
January–December 2020 (App Store + Google Play),” January 2021, App Annie
researchbusiness card information into an app that capitalizes

02
Business Strategies to Increase
Corporate Value

Becoming a Business Network

is strongly suited to a business context. We are

A Story of Value Creation

An Evolving Business Network“Eight” not only has a large user base and a high active

Business Event Matching and Hosting System “Eight ONAIR”“Eight ONAIR” tab on “Eight.” Since they havepreviously registered their own profile information on

on business connections. As a result of these efforts,

03“Eight,” they can easily participate in an event with justone click. Organizers can use the “Eight” network to· Recruiting page forbusinesses made free
· Quick scan feature

2012· Launch of service

2013· Business card exchange
request feature· Messaging feature2019· Launch of B2B services“Eight Career Design” and“Meets”

2015·F eed feature·P rofile page edit feature· L aunch of B2C service“Eight Premium”· Skill Tags feature· Enhanced “Virtual Cards”
feature· Launch of B2B service“Climbers”

2016· “ Virtual Cards” exchange
function via QR code*2 andBluetooth· Launch of share feature· Launch of B2B service“Eight Marketing
Solutions”

2021· L aunch of business event
matching and hosting
system “Eight ONAIR”

The Structures Underpinning
Sustainable Growth

2018

2020

share event information for free by simply entering theevent information. Since the participant data
information derives from accurately digitized businesscard information, it is possible to acquire high-quality
lead information. We will continue to constantly

2017· G roup messaging feature· Company page
· First TV commercial· Launch of B2B service“Eight Company Premium”

Kenji Shiomi
Director, Executive Officer,
CTO, Managing Executive(Engineering Division, Eight
Division)“Eight,” the business card management app, has evolved from a simple
business card management service into a platform for capitalizing on theinformation contained in business cards. To target future growth in thisarea, we believe we have to find ways of evolving “Eight” into a platformthat can provide more value than ever to users in the context of digital-todigital interactions. For example, with the “Climbers” business event foryoung business people, we were able to attract one of the largest crowds
ever by making use of the “Eight” network. This represents a value that is
unique to “Eight” that is not possible through the “Sansan” service. We are
currently working on a range of further initiatives to augment themonetization of our various B2B services and deliver new services to users.
By leveraging the user base and wealth of valuable data of “Eight,” ourhope is that it will become a platform for creating new encounters, and wewill build up the platform into a major earnings driver for the Group, taking
its place alongside “Sansan” and “Bill One.”*2 QR Code is a registered trademark of DENSO WAVE INCORPORATED

38

Sansan, Inc.

ANNUAL REPORT 2021

39

01_A Story of Value Creation

02_Business Strategies to Increase

Corporate Value

03_The Structures Underpinning
Sustainable Growth

New Services

01

Business Fields that the Group Takes on

Creating and Delivering New
Services

Expanding technology to digitize analog

Generating synergies by combining withinformation into other fields

existing services

Invoices

Business Events and Seminars

02
Business Strategies to Increase
Corporate Value

Using Strengths of Existing Services to Expand into
Business Fields Where Digital Transformation (DX) Is
in Demand

A Story of Value Creation

Business Cards

Increasing Need for Business Innovation Based on DX
The COVID-19 pandemic added to the many challenges

while the domestic SaaS market*2 is expected to reachalready facing businesses as they strive to achieve

1,117.8 billion yen in 2024 (a 516.2 billion yen increase

efficiency in their workflows. Companies now have to adapt

compared to 2019). Growth will be driven by shifting

to changing working styles, including remote work andawareness of DX and interest in SaaS business spurredsales activities conducted without face-to-face meetings.

by changes in employment and working styles, the use

For many companies, business innovation based on DX

of big data, and the obsolescence of existing systems.

DX market*1 is expected to reach 3,042.5 billion yen in
2030 (a 2,251.3 billion yen increase compared to 2019),*1 “2020 Future Outlook for the Digital Transformation Market” Fuji Chimera
Research Institute, Inc.
*2 “New Markets in Software Business: 2020 Edition” Fuji Chimera ResearchInstitute, Inc.

Creating New Services that Facilitate DX

40

The Group is working to create new services that facilitateof attracting customers in Japan. Moreover, the rapid shift

DX for companies, leveraging the strengths and knowledge

to online events in the wake of the pandemic has caused a

we have accumulated through our existing services.

sharp rise in new issues unique to online venues. In response

Specifically, we are applying our technology for digitizing

to these issues, we are supporting businesses in their DX byanalog information—originally developed for businesscombining existing services and functions the Group has

cards—to other business fields, to deliver new services forcreated to date to create solutions that can address a wide

invoices and contracts. Processing invoices and filing contracts

range of challenges. Such efforts led not only to the launch

involve many inefficient workflows conducted through theof our existing “Sansan” service but also to a number of

exchange of paper documents. The Group’s services make it

new B2B services, which now constitute what could bepossible to accept invoice data online and simultaneously

described as a multiproduct business portfolio. Going

digitize the entire array of related workflows. For this reason,

forward, we will work to ensure that this multiproductcompanies are increasingly adopting our services as solutions

portfolio gains widespread recognition as a form of

to their DX challenges. We are also working on providing new“Business infrastructure.” To this end, we will not only enhanceservices that streamline workflows in the field of businessthe functions of each service and steadily expand distribution,

events and seminars. In these fields, many analog workflows

but also continue to address many potential customer

such as fax and mail still serve as the mainstream methods

issues as we focus on creating our next new service.

Sansan, Inc.

03
The Structures Underpinning
Sustainable Growthhas become a pressing issue. Against this backdrop, theContracts

Cloud-Based Contract Digitization Solution “Contract One”
“Contract One” is a contract-related business solution using our unique technology and operations.
Because contracts rely mostly on paper, they involve inefficient processes such as collating, stamping, andmailing, which are a major impediment to companies’ efforts to boost productivity by introducing remote
working and other new working styles. Moreover, from the perspective of complying with the Act
Concerning Preservation of Electronic Books, which is due to be revised in January 2022, revising contract
management workflows is a management issue for many companies. “Contract One” addresses theseissues and supports the efficiency of contract management and utilization of contract information for user
companies, as well as helping to realize newworking styles. Specifically, by accurately digitizing
paper-based contracts through the “smart ledger”
function, all contract information, both paperbased and electronic, can be centrally managed,
leading to the visualization and effective use ofcontract information. In addition, we are planningto add features to improve workflows that are
made inefficient by the need for a person to bephysically present when concluding paper-based
contracts.

ANNUAL REPORT 2021

41

01_A Story of Value Creation

02_Business Strategies to Increase

Corporate Value

03_The Structures Underpinning
Sustainable Growth

New Services

01

Fee Model

Fast Monthly Closing and More Efficient Work by Enabling
Users to Receive, Digitize, and Centralize Invoices

including onboarding support by a dedicatedfewer, we offer a Small Business Plan in which theconsultant and a monthly fee that is calculated based

initial and monthly fees are waived, subject to certain

on the number of invoices to be digitized at the user

conditions.

External Environment and Business Issues that “Bill One” Addresses
While DX and the realization of new ways of working

in the E-Invoice Promotion Association, the Group ishave become pressing issues for companies, mostactively engaging in discussions with a view to theinvoicing continues to be analog. This requires people

introduction of an invoicing system, slated for October

to come to the office to process paper invoices—an2023. Sansan was appointed as organizing company

obstacle to adopting remote work. There have been

for the Association in September 2021. We see this“Bill One” is a DX solution that that helps companies

platform, various workflows such as invoice

moves in Japan to address these issues for both

environment as a tailwind driving more widespread

make faster business decisions by allowing the online

confirmation and approval can be completed online,

public- and private-sector entities, such as the revision

growth in the “Bill One” service. We have alreadyreceipt of all invoices sent to multiple offices andhelping to expedite monthly accounting procedures.

of the Act Concerning Preservation of Electronic Books

received highly positive feedback for the service’s role

departments of a company in both paper and PDF

Moreover, invoice information is centrally managed in

and introduction of a standardized invoicing system.

in supporting some small and medium-sized

formats, boosting the efficiency of invoicing worka highly searchable database, making it easy to

Along with other member companies and organizations

companies that had lagged behind in digitalization.

across the organization. Paper invoices are received

search for data. This not only improves businessby the “Bill One” scanning center on behalf of the

productivity, but also enables the use of data tocustomer and converted into data quickly, with 99.9%

control costs, generate sales opportunities, andaccuracy. “Bill One” also digitizes PDF files and othermaximize future profit opportunities. The data can

invoices received by email or other means. In addition

also be used in conjunction with other companies’

to enabling digitized invoices to be viewed on a cloudservices, such as accounting systems.

02
Business Strategies to Increase
Corporate Value

Service Description

company. For corporations with 100 employees or

A Story of Value Creation

Online Invoice Receiving Solution

The fee for using “Bill One” consists of an initiation fee

Future Strategies
potential. We are working to expand its penetrationcompanies in Japan, regardless of their industry or

further, mainly through the following measures.

03
The Structures Underpinning
Sustainable GrowthLike “Sansan,” “Bill One” is a service that targets all
size. We therefore see it as having vast market

Company issuing the invoice“Bill One” user companies

Email notification

UploadOne-stop receipt
Email attachment

Mail

42

Invoice digitization with
99.9% accuracy

Increasing the Number of Companies
Participating in the “Bill One” Network

Enhancing Features through In-House
Development and Outside Collaboration

In our recent organizational
restructuring, we established an operating
structure that enables us to allocate
resources even more responsively andflexibly. Against this backdrop, we will work
to expand sales activities, implement
cross-selling with “Sansan,” and further
expand our sales structure through more
active recruitment. We will also strengthen
our advertising and marketing activities
in TV commercials and other areas.

The network consists of companies
that exchange invoices on the “BillOne” platform (senders andrecipients). Since each user will receive
invoices from multiple senders, thenumber of companies participating in
the network will expand at a fasterrate than the number of users. We areworking to further expand the network
by offering it free of charge to somesmall and medium-sized companies.

In addition to accounting operations,invoice data can be used to optimize
procurement applications and to generatesales opportunities. We are therefore
positioning enhancing functionality in thisservice as a highly critical measure.
Going forward, instead of solely
pursuing in-house development, weplan to expand tie-ups with the coresystems of other companies, including
their accounting systems.

Centralized management via database“Bill One” Paid Subscriptions and Potential Market Size

Ability to Receive
All Invoices Online

Building Business Flows to Respond to
Regulatory Revisions

Users can receive online invoices
sent in various formats and byvarious means. Issuers cancontinue to send invoices as
before, simply by changing thesending address. The system
supports remote work andpaper-free operations.

Invoicing has reached a turning point inJapan, as reflected in the revision of the Act
Concerning Preservation of Electronic Books
and the introduction of a standardized
invoicing system, and has become amanagement issue for companies. “Bill One”
is a service that helps solve such issues,
making it possible to build business flowsthat respond to regulatory revisions.

Sansan, Inc.

View invoice via link

Strengthening Sales andMarketing Activities

Improving Productivity Not Only in
Accounting But Across the Entire
Organization“Bill One” boosts productivity bydigitizing various work flows involvedin accounting. In addition, by digitizing
invoice-related exchanges internallyand with companies that issue
invoices, the solution speeds up invoicedelivery and accelerates monthly
accounting operations.

Number of Paid Subscriptions(subscriptions)239+73.2％

1,000

138
26
End of Q1

74
End of Q2 End of Q3
Fiscal 2020

Potential Market Size
End of May 2022
TargetEnd of Q4“ Bill One”

Network
MemberCompanies

Number of companies
in Japan*1

Approximately
2 million

subscriptions“ Bill One”

End of fiscal 2021

*1 Figures based on the “2016 Economic Census of Activity,” Statistics
Bureau, Ministry of Internal Affairs and Communications

User
Companies

ANNUAL REPORT 2021

43

02_Business Strategies to Increase

01_A Story of Value Creation

03_The Structures Underpinning
Sustainable Growth

Corporate Value

New Services

01

Overview of Main Services

Bringing Services Together to Solve the Challenges
of Business Events and Seminars

to the post-pandemic era, we can expect that a hybrid

solutions that address issues related to the management of

seminar format, a blend of offline and online elements,

business seminars. The pandemic has driven rapid growth inwill become the norm. The following main services offer

the demand for online seminars. However, as we look beyond

solutions that we expect to be effective for any format.

A Story of Value Creation

Event Tech Services

Among event tech services, our main service is a bundle of“Seminar One”
This B2B seminar management system enables easy andeffective event management for seminars. Specifically,02

B2B seminar management system

it offers a package of seminar-specific features that allow
even users without specialized knowledge to manage event

Business Strategies to Increase
Corporate Value

Event Tech Services Portfolio

operations, ranging from creating an application page toholding the seminar itself and managing reception, as well

Businesses in Japan host a wide variety of events, from

also, entering information into an online registration

as building an accurate visitor database. In addition, theexhibitions and conferences to small seminars. However,form is time-consuming for participants. In many cases

system supports users in efficiently producing results byevent management is rife with many inefficient, analog

information is omitted, or incorrect information is entered.

leveraging seminars in their marketing and sales activities,

management flows. We believe that many fields offer

In response, the Group has combined various services tosuch as importing seminar data into marketing automation

substantial room for optimization through digitalization.

create an event tech service portfolio that offers an array

tools. Integration with “Sansan” also makes it possible to

Challenges in business event management are not limitedof solutions aimed at solving the full range of operational

manage participants’ customer data. The pricing model

to offline events. The rapid shift to online events in the wakeand management issues that arise before, during, andconsists of an initiation fee for system onboarding andof the COVID-19 pandemic has also unearthed many otherafter business events and seminars. Going forward, wea monthly billing plan based on the number of seminars

issues. In offline pre-event activities to attract customers,

will expand our portfolio by strengthening existing services

held and the number of leads secured.

for example, the mainstream approach still relies on analog

and creating new services. Over the longer term, we hopeprocesses such as announcements through direct mailto grow the event tech service into a major earnings drivermarketing and event registration via fax. For online events

for the Group.

URL
https://●●●●●/●●●.html

03
The Structures Underpinning
Sustainable Growth“Smart Entry”
This is a new generation data entry system that uses “Virtual
Cards” information provided by the “Sansan” and “Eight”.

Attendee management

Aft
er

Be
fo
re

t
en
ev

t
en
ev

Transcription

Attracting participants

Registration forms for events and requests for information
are time-consuming to fill out. Registrants often quit
midway through or enter incorrect information. With thisservice, the registrant simply takes a picture of the QR

Entry

code*1 with their smartphone and the precise informationfrom their “Virtual Card” is sent to the form to complete
registration. Moreover, even if registrants do not have

Seminar Management

a “Virtual Card” they can use the service simply by
Questionnaires

Dissemination of event information

taking a picture of a business card.

*1 QR Code is a registered trademark of DENSO WAVE INCORPORATED*1

Interaction

Virtual Cards

Reception

D u ring eve nt

Pamphlets*1 Services provided by the Group’s equity-method affiliates

44

Sansan, Inc.

Smart Reception“Smart Pamphlet”
This service enables pamphlets to be distributed and

QR code*1 that links to the relevant information. Visitors

received online. Distributing pamphlets at offline seminars

can then view the brochure that they receive as data by

and exhibitions is a key marketing tactic for companies,

simply scanning the QR code.*1 Visitors’ “Virtual Card”

but one that still involves many analog workflows such as

information is simultaneously sent to the host company,

printing, transporting, and managing pamphlets in large

enabling it to approach potential customers and maximize

quantities. With this service, a user company can simply

business opportunities while optimizing its operations.

post the brochure data to a setup screen to generate a

ANNUAL REPORT 2021

45

01_A Story of Value Creation

02_Business Strategies to Increase
Corporate Value

03_The Structures Underpinning
Sustainable Growth

Aiming for a Sustainable Society

Environmental Conservation
Activities Linked to BusinessWe contribute to the sustainability of natural capitalthrough business cards, the starting point of all our services.
Policy for Addressing Climate Change

Guided by our mission of “Turning encounters intovalue. This enables us to pursue the sustainable growth ofinnovation” and with a vision of seeking to “Become

our business while maximizing corporate value. Based on

The Group’s business centers on the planning, development,

Climate-related Financial Disclosure (TCFD), but we see

business infrastructure,” we are expanding our range ofsound corporate management, and taking stock of theand sales of cloud-based solutions that promote digitaldealing with such issues as vital to stable economic

services. We believe the contributions we make to solving

environment, business conditions, and business stage oftransformation and reshape how we work. As we do notdevelopment and the foundation of people’s lives. We aresocial issues through our business activities will help to build

the Group, we will pursue sustainability activities that lead to

expect a significant business impact from climate change

pursuing measures including energy conservation, digitizationa sustainable society, which will in turn lead to the Group’s

growth by identifying and addressing what we can do now,

issues, our disclosure is not based on the Task Force onof documents, and allocating part of earnings to tree planting.

sustainable growth and the enhancement of corporate

for the sake of the future, through our core businesses.

Sansan, Inc.

The Groupʼs Approach

Initiatives and Structures

Systems and Working Environment to Support Women’s Careers
To achieve our corporate mission and vision and accelerate corporate growth, we believe it is vital for eachand every employee to maximize their output and maintain sustainable growth. To this end, so, we are working
to establish environments to increase employee productivity. In addition to the maternity leave system forfemale employees, we have established a system to encourage the early return to work following childcare
leave, aiming to create a comfortable working environment for all employees regardless of gender.

“MOM” (see p. 25)“KISS” (see p. 25)

Solving Company Issues and Contributing to Changes in Working Styles through Our Services
The Group’s services make up a business platform that enables a wide range of cloud-based tasks,
helping companies pursue digital transformation (DX) and working style reforms, including remote
working. Our services contribute to increased productivity by accelerating work processes and help
generate new sales opportunities by enhancing data utilization.

Providing services to solve social issues(see p. 30)

Contributing to an Information Technology Society
Because the Group handles business cards and other highly confidential business information, information
security is critical. We are committed to ensuring security, and have mechanisms in place to prevent
information leaks in our systems and operations. The digitization and data utilization teams in our R&D
organization release several research reports each year. We are also supporting the establishment of atechnical college, with the aim of encouraging the development of entrepreneurs who will change our world.

Information security initiatives (see p. 26)
Original technology development and research
reports by the R&D organization (see p. 22)
Supporting Establishment of Kamiyama
Marugoto College of Design, Technology, andEntrepreneurship (provisional name) (see p. 49)

Services that Enable Paperless Operations
We see substantial room for optimizing the way business tools such as business cards and other paperbased business tools are used and managed. The “Virtual Cards” and “Smart Pamphlets” that our Group
provides both solve business problems and make transactions paperless by enabling analog information
to be digitized and used as data.

“Virtual Cards” (see p. 32)“Smart Pamphlets” (see p. 45)

Conserving Forests by Planting Trees
We recognize the importance to society of restoring natural capital in order to achieve sustainablebusiness activities. We plant one tree in a disaster-affected area of Japan every time the total number ofbusiness cards digitized in our “Sansan” service reaches the equivalent of one tree.

“Scan for Trees” (see p. 47)

Service to Strengthen Corporate Compliance
One of the optional features of “Sansan” is the ability to comprehensively check uploaded business card
information for any connection to antisocial forces. Through this service, we are supporting companies intheir efforts to strengthen their compliance.

Offering “Risk Intelligence powered by
Refinitiv/KYCC” (antisocial forces check)(see p. 35)

Using Partnerships to Solve Social Issues
To ensure that non-profit organizations can use “Sansan” services over the long term, we offer customized
special pricing plans for NPOs. We also share the knowledge and results obtained by our R&D organization
with government agencies to support their policy planning and implementation.

“Sansan for NPOs” (see p. 48)
Supporting Evidence-Based Policy Making(EBPM) (see p. 49)

03“Scan for Trees”

The Structures Underpinning
Sustainable Growth

Our Approach to the Sustainable Development Goals (SDGs)
Development
Goals

02
Business Strategies to Increase
Corporate Value

Sustainability Policy

A Story of Value Creation

Environmental Initiatives

Pursuing Sustainable Growth in Corporate Value by
Enhancing Transparency and Contributing to Society
through Business46

01

Sustainability Policy

Every time the number of business cards digitized in
our “Sansan” service reaches the equivalent that can beproduced from one tree, a tree is planted in a needed
area, such as in Miyako City, Iwate Prefecture, Osaki
City, Miyagi Prefecture, and other areas affected by theGreat East Japan Earthquake. Our count includes

Number oftrees planted:

9,520 trees(as of September 2021)

scanned paper business cards, “Virtual Cards,” andother digitally imported cards. Even in an era of greater
remote work, we are using business cards, the starting
point for all our services, to support reforestation andrestoration of disaster-affected areas.

Tree Planting Activities
Miyako City in Iwate Prefecture has thriving agriculture, forestry, and fishing industries and was renowned as one
of Japan’s best fishing grounds, but the Great East Japan Earthquake caused extensive damage to coastal fishing.
Pastures in Osaki City in Iwate were abandoned by farmers forced to withdraw from the livestock trade after theearthquake. Through our tree planting in these areas, new trees will grow into forests over decades. Abundant water
sources there will benefit the soil on lower ground and support the restoration of towns and fishing grounds.

ANNUAL REPORT 2021

47

01_A Story of Value Creation

02_Business Strategies to Increase
Corporate Value

03_The Structures Underpinning
Sustainable Growth

Supporting Establishment of Kamiyama Marugoto College of Design,
Technology, and Entrepreneurship (provisional name)Highly Diverse Social Activities

We are supporting the establishment of Kamiyama

ventures that bring about social change in any context.

Marugoto College of Design, Technology, and

The Group has set up a support office to provide theEntrepreneurship (provisional name). Through ourcollege with marketing, design, PR, and other knowledge

support of this school, which has the concept of being “acultivated through our business operations. We areschool that changes the future of humanity throughaiming at building a world where working people willtechnology and design,” we encourage the development

naturally use Sansan’s services as business infrastructureof entrepreneurs who will change our world. The college will

and more creatively achieve innovation.

We Conduct Social Activities from a Wide Range of
Perspectives, including Encounters and Connections
with People, Data, and Technology.

01
A Story of Value Creation

Social Initiatives

02

offer courses on cutting-edge technology in areas such as
IT and software as well as design focusing on user interface
and user experience that give shape to ideas. The curriculum

Business Strategies to Increase
Corporate Value

will seek to foster an entrepreneurial spirit to create socialchange, and raise up “people who can accomplish great“Kodomo Meishi Project”

things by creating great things,” who can launch businessWe provide children with their own business cards in an
educational support project mainly geared toward
preschool and early elementary school children. In thisKodomo Meishi (kids’ business cards) Project, we create
original business cards that reframe children’s favorite
activities as types of work. This helps children understandthe meaning of encounters between adults that begin withexchanging business cards. Using workshops and otherformats, we also communicate the value of all encounterssomething. We also distribute original picture books about
encounters using business cards, to encourage parent-“Hajimete no Meishi (their first business card)” isa free online service that allows children to createbusiness cards with their dream as their future job.
Exchanging these cards with family and friends
gives children a chance to talk about their dreams
and learn more about their parents’ work, andhopefully also develop a sense of self-worth. The
service is used as a communication tool at familydays, nursery school workshops, sponsored events,and other Group-organized events.

“Yoiko for CSR”
We have a program “Yoiko for CSR” through which we
support socially beneficial activities planned andcarried out by our employees. When a group of threeor more employees engages in social contribution
activities, our support system includes special leave
for CSR activities, support for activity expenses, andpermission to use our business sites nationwide. Aspart of our CSV activities, this initiative aims to raise
the Company’s social value and improve productivity

child communication that starts with reading together.

“Chotto de Motto for Mama”
Based on the idea that small adjustments can make adifference, this program supports returning mothers,
offering advice on dealing with work and incorporating
childcare into life planning. In roundtable discussions
and webinars, mothers working at Sansan sharetips and insights to help colleagues balance workand childcare without losing a sense of fulfillment.
We also help foster career building by holding
seminars for mothers within and outside the Group.

03
The Structures Underpinning
Sustainable Growth

and the importance of working with others to create“Hajimete no Meishi”

by promoting interaction among employees.

Supporting Evidence-Based Policy
MakingThrough the Group’s data-related research anddevelopment, we support efforts by government agencies
to apply Evidence-Based Policy Making (EBPM). EBPM is“Sansan for NPOs”

the notion that policy formulation should be based onrational evidence after clarifying policy objectives, rather

48

We give support to NPOs through Group services. Specifically,

contribution activities, it is important for NPOs to build long-than relying on ad hoc episodes. We support policy

our B2B business card-based contact management service,term relationships with the government and philanthropists.

planning and implementation by government agencies“Sansan,” which has been widely adopted by small businesses

At the same time, NPOs often do not have sufficient resources

using data from the “Eight” business network to the extent

with several employees as well as major corporations andfor managing contacts. By creating a pricing plan that makes

permitted by the terms of use. After analyzing

government agencies, is also provided in an NPO service plan

it easier to adopt “Sansan,” with its focus on business cards

anonymized data, we provide knowledge and findings

with a customized special pricing plan so that NPOs can continue

and various functions that go beyond just managing and sharingthat serve as information and data (evidence) relevant toto utilize the services over the long term. To engage in social

contacts, we support the social contribution activities of NPOs.

policy evaluation and verification.

Sansan, Inc.

“Business-Related Population”
A “related population” falls between a region’s
resident population and the “exchange population”
of visiting tourists. Drawing on the expertise of
Sansan researchers and data scientists with social
science backgrounds, we developed a uniqueindex that captures “business-related populations”
in terms of business connections based on businesscard exchange data, which can clarify degrees
of interaction between business people and local
municipalities not previously available. We areworking to apply this to regional revitalization
policy, monitoring of regional vitality, and otherregional development efforts.

ANNUAL REPORT 2021

49

01_A Story of Value Creation

02_Business Strategies to Increase
Corporate Value

03_The Structures Underpinning
Sustainable Growth

Governance Initiatives

Establishing a Governance Structure to Ensure
Sound, Transparent Management

prime market, I believe the Group must first and foremost

larger social issue as well, supporting the establishment

maximize business performance. Many of the Group’sof Kamiyama Marugoto College of Design, Technology,

client companies have overseas businesses. I see potential

and Entrepreneurship (provisional name), a college

for the Group eventually to evolve its services so that they

focusing on the concepts of technology and design.

can be used in transactions around the world. It can thenMy hope is that these activities will have a positive

become a Japanese company with a truly global business.

social impact in the future.

Further discussions on governance will also be necessary

In terms of evaluating the business side, I think a major

new markets. This makes it critical to constantly optimize

overall. When I joined Sansan as an outside director, thegovernance to address each business phase. While

core parts of the main business, “Sansan,” were alreadyensuring sound, transparent management, it will bein place. We were discussing how the Group could expand

important to keep pace with the speed of businessthe value of the service for users and increase its popularity

execution by continuously strengthening management

in society. The Group addressed these priorities throughsupervision and reviewing the organizational structure.

appropriate measures such as reinforcing recruiting, revising

The Group has newly established a vision for its

its sales structure, and undertaking a major reorganization.

services, to “Become business infrastructure.” Achieving

I also feel that it is particularly commendable that, eventhis vision calls first for the Group itself to create a newamid the COVID-19 pandemic, the Group has been able

culture and new customs. It must become a company

to achieve growth by creating new businesses, such asthat is highly valued in society. With this firmly in mind,

the “Bill One” online invoice receiving solution.

I look forward to continuing to work with management

Interview with an Outside Director
topics were actively discussed at Board meetings. For

outside director at Sansan. So far, I have participated inexample, regarding topics related to human resources,

discussions of the Board of Directors and offered insights,

such as promoting the career advancement of women

mainly from the standpoint of maintaining solid governance,and ensuring diversity, as a female executive myself who

drawing from my experience to date as a lawyer working in

is raising children, I have had many opportunities to draw

corporate management and M&A. I also chair the Audit &on my knowledge from my experience as a lawyer

Supervisory Committee, whose four members are all outside

working on labor cases. I believe the Group has done

members, three of whom are independent officers. As

well in providing a supportive working environment

members of the Audit & Supervisory Committee, each of us

and well-organized systems for childcare support. I feeloversees management from our own professional ethicalthat some work remains, however, in terms of thestandpoint. Our opinions are then consolidated andrecruitment of women. In terms of job positions in thesubmitted to the Board of Directors.

Group, hiring of women in the development area has

Having first listed on the Mothers section of the Tokyo

not made as much progress as in the sales and back

Stock Exchange in 2019, the Company changed its market

office areas. While it is important to address this issue

listing to the First Section of the TSE in 2021. In the process

through recruitment activities, part of the problem is theof preparing for these corporate actions, governancelow proportion of women with a STEM background in

Sansan, Inc.

Corporate Governance System
The Group will maximize sustainable corporate value

the Board of Directors. We will secure the transparency

and contribute to society while recognizing the importanceof management decision-making and the supervision ofof gaining the continued trust of all stakeholders. Under suchbusiness execution by having an Audit & Supervisory

an approach, the Company has adopted a corporate system

Committee. At the same time, we will establish an internalthat establishes an Audit & Supervisory Committee with

control system based on the Basic Policy on Internal

the aim of further enhancing corporate governance and further

Control Systems determined by the Board of Directors

improving the soundness and transparency of management.

and ensure its thorough operation while striving toTo this end, we will strengthen the supervisory function ofmaintain and strengthen corporate governance.

03

Corporate Governance System

General Meeting of Shareholders
Appointment/Dismissal

Auditing/
Supervision

Board of Directors
Directors

Appointment/Dismissal/
Supervision
Direction

Representative Director
Reporting

Audit & Supervisory Committee

Appointment/
Dismissal
Cooperation

Directors serving on the Audit &Supervisory Committee(excl. directors serving on the Audit &Supervisory Committee)

ReportingAppointment/
Dismissal

Cooperation
Cooperation

Internal Auditing Department

Direction/Commands

ReportingInternal auditing

Accounting Auditor

50This fiscal year marks my fourth year since becoming an

to achieve sustainable improvement in corporate value.

The Structures Underpinning
Sustainable Growth

Outside Director,
Audit & Supervisory
Committee Member

02
Business Strategies to Increase
Corporate Value

Yasuko Yokosawa

going forward. The Group is growing rapidly while creating

strength of the Group is the speed of its management

Going forward, to enhance its reputation in the TSE01
A Story of Value Creation

Corporate Governancesociety as a whole. The Group is working to confront thisAuditing

Departments

ANNUAL REPORT 2021

51

01_A Story of Value Creation

02_Business Strategies to Increase
Corporate Value

03_The Structures Underpinning
Sustainable Growth

Governance Initiatives

01

Outside Directors and Reason for Appointment

broader perspective and supervise management from

including four directors who are members of the Audit &outside the Company, while drawing on their insights into

Supervisory Committee, all of whom are outside directors. The

corporate management based on a wealth of practical

Company invites as outside directors persons with executive

experience. To conduct efficient and prompt decision-making,experience at other companies or legal experts with detailed

the Board of Directors holds a regular meeting once a monthknowledge of corporate legal affairs and compliance. The

in principle, as well as holding extraordinary meetings as

Company has thus established a system that enables outsideneeded. Outside directors attended all Board meetings

directors to conduct management decision-making from ain fiscal 2020 and offered advice and recommendations.

Audit & Supervisory Committee
ethics. Directors who are members of the Audit & Supervisoryfour directors who are members of the Audit & Supervisory

Committee express opinions on directors’ performance ofCommittee. All Committee members are outside directors,

duties at meetings of the Board of Directors and otherthree of whom are independent officers. Directors who aremeetings as appropriate. To monitor the vison of governancemembers of the Audit & Supervisory Committee include thoseand its operational status and to audit and supervise the daily

who have expertise in areas such as legal affairs, accounting,activities of directors, including their performance of duties,

and compliance, persons with executive experience at other

the Audit & Supervisory Committee conducts audits based

companies, or persons who possess an independent

on the audit plan and holds Committee meetings once a

perspective on corporate management. Thus, we havemonth. In addition, the Committee convenes meetings

established a structure for carrying out managementwith the Internal Auditing Department and accounting

supervision from the standpoint of each member’s professional

auditors and shares information necessary for auditing.

Toko Shiotsuki(Outside/Independent)

As a counselor at TMI Associates,
Yasuko has specialized
knowledge and experience inareas such as corporate legal
affairs and compliance.
The Company appointed her
as an outside director with the
expectation that she will
provide opinions from a legal
perspective, such as on legal
arrangements related to our
new business strategies.
She has also been designatedas an independent officer.

As a general partner at Incubate
Fund, Toru possesses many
years of professional experiencein the venture capital business
together with a wealth ofexecutive experience at othercompanies, and has cultivatedbroad insights through theseexperiences. The Company
appointed him as an outside
director with the expectation that
he will offer advice and suggestions
regarding overall management
and corporate investment.

As a researcher in preventive
medicine and behavioral science,
Yoshiki has expertise in the fields ofdata science, human resources
strategy, and sustainability, among
others, as well as professional
corporate experience. The Company
appointed him as an outside director
with the expectation that he will
provide opinions and suggestions
from various perspectives
cultivated through this experience.
He has also been designated as
an independent officer.

With assistant certified public
accountant qualifications and a
Doctor of Jurisprudence degree, Tokopossesses a wealth of corporate
experience, including serving as
director and full-time Audit andSupervisory Committee member ofCyberAgent, Inc. The Company
appointed her as an outside
director with the expectation that
she will provide meaningful opinions,
including regarding diversity.
She has also been designatedas an independent officer.

02

Evaluation of Effectiveness of the Board of Directors
The Board of Directors is striving to achieve more

the Company carries out an evaluation of the Board’s

sophisticated corporate governance. To this end, as aeffectiveness. Based on the results of this evaluation,measure to assess the role expected of management,

the Board of Directors implements its own PDCA cycle.

Evaluation Process and Results for Fiscal 2020
A questionnaire was administered to all directors concerning theeffectiveness of the Board of Directors and other issues. After
receiving a report on the deliberations and opinions expressed by the
Audit & Supervisory Committee regarding the questionnaire results,
the Board of Directors discussed the evaluation results, coming to ashared awareness and deciding on steps for improvement. In the
results of the fiscal 2020 questionnaire, many respondents stated thatthe Board’s performance was appropriate or mostly appropriate interms of the responsibilities of the Board of Directors, the Board’s size

and make-up of members, the frequency of Board meetings, theBoard’s decision-making process, and the quality of information
provided. The Company thus judged that the effectiveness of theBoard of Directors had been ensured. Taking into consideration theview that the Board of Directors needs to carry out deeper
discussions, such as by enhancing the training system for directors
and revising matters to be submitted to the Board of Directors, theCompany will formulate a roadmap for improvement and take otherongoing measures to improve effectiveness of the Board.

03
The Structures Underpinning
Sustainable Growth

The Company’s Audit & Supervisory Committee comprises

Yoshiki Ishikawa(Outside/Independent)

Business Strategies to Increase
Corporate Value

The Board of Directors of the Company consists of nine directors,

Toru Akaura(Outside)

A Story of Value Creation

Board of Directors

Yasuko Yokosawa(Outside/Independent)

Process of Deciding Remuneration
Composition of the Board of Directors (as of August 2021)
Ratio of outside directors

Ratio of independent officers

44%

52

Ratio of women

22%

33%

The amount of remuneration for directors who are Audit &were delegated to the Representative Director.

Supervisory Committee members is determined following

However, this method has been changed and, starting

discussion by all Audit & Supervisory Committee members,from fiscal 2021, such matters will be decided by awithin the limit of total remuneration amounts resolved at

resolution of the Board of Directors. Moreover, the content

the General Meeting of Shareholders. Until now, decisionsof remuneration to be resolved by the Board will be

about the amount of individual remuneration for directors

reviewed by independent officers in advance, and(excluding Audit & Supervisory Committee members)

decided based on their report.

Outside Directors and Independent Officers

Composition of Remuneration

All four directors who are members of the Audit &of corporate legal affairs and compliance, who can be

In principle, remuneration for directors consists of fixed

has introduced a new share subscription rights trust andSupervisory Committee are outside directors under

expected to express opinions on overall corporatemonthly remuneration. As a means to incentivize directors

performance target-linked new share subscription rights,

Japanese corporate law, and three of them aremanagement drawing on a wealth of practicalapart from the remuneration system and in addition to thewhich aim to provide directors with incentives to improve

independent officers. The Company’s policy is to selectexperience and insights into corporate management.

stock-option system, which was introduced with thecorporate value over the medium to long term. The number

outside directors who have executive experience at other

In August 2021, Toko Shiotsuki was newly appointed asaim of further raising director motivation and enthusiasmof shares distributed to each eligible recipient is decided

companies or legal experts with detailed knowledge

an outside director (independent officer).

for improving Group business performance, the Group

based on factors such as their position and expected role.

Sansan, Inc.

ANNUAL REPORT 2021

53

01_A Story of Value Creation

02_Business Strategies to Increase
Corporate Value

03_The Structures Underpinning
Sustainable Growth01

Governance Initiatives

A Story of Value Creation

Directors

02
Kei Tomioka

Kenji Shiomi

Position

Representative Director,
Executive Officer, & CEO*1
Managing Executive(Internal Auditing
Department)

Director, Executive
Officer, CRO*2 Managing
Executive (Business
Division),
General Manager of
Sansan Unit

Director, Executive
Officer, CTO*3 Managing
Executive (Engineering
Division, Eight Division)

Director, Executive
Officer, CHRO*4

Chika began his careerwith Mitsui & Co., Ltd.
After moving to the IT
Marketing Division, he
relocated to Silicon Valley
to work with local venturecompanies to develop
their Japan-focusedbusinesses. After
returning to Japan, Chika
launched an internal
venture and worked for
an affiliated company,
after which he founded
Sansan, Inc. in 2007.

Kei began his career with
Oracle Corporation
Japan, and was based in
Shanghai and Bangkok,
taking charge of market
development acrossGreater China (China,
Hong Kong, Taiwan),Southeast Asia, and India.
In 2007, Kei co-founded
Sansan, Inc. and ledbusiness efforts for the
Sansan B2B cloud-based
contact management
service. Now, as CRO, heoversees company-wide
operating revenue.

Kenji co-founded Sansan,
Inc. in 2007, after working
with Bussan System
Integration Co., Ltd. (nowMitsui Knowledge
Industry Co., Ltd.), where
he designed anddeveloped email systems
for major mobile carriers.
Since 2012, he has been in
charge of the Eight B2C
business cardmanagement app. Now,
as CTO, he oversees thecompany-wide
technology strategy.

10,358,230

1,040,000

17 out of 17 times

Corporate Management
Data, Information Security

ProfileNumber of Shares Held*6

Yuta Ohma

MuneyukiHashimoto

Yasuko Yokosawa

Toru Akaura

Yoshiki Ishikawa

Toko Shiotsuki

Director, Executive
Officer, CFO*5 Managing
Executive (General Affairs& Legal Department,
Office Strategy
Department)

Outside Director, Audit &Supervisory Committee
MemberOutside Director, Audit &Supervisory Committee
MemberOutside Director, Audit &Supervisory Committee
MemberOutside Director, Audit &Supervisory Committee
MemberIndependent

OutsideOutsideOutsideYuta began his career at
a human resources
company, where hehelped launch aconsulting service. He
then went independentand served as a director
for a venture firm inrecruitment. Yuta joined
Sansan, Inc. in 2010 as aManager in sales andlater became the head of
HR. As Chief Human
Resources Officer (CHRO),
he leads strategies for
optimizing the value andproductivity of Sansan’s
workforce.

Muneyuki worked forforeign securities
companies in Tokyo and
New York for nearly nine
years, providing M&A
and financing advisory
services. He then moved
to a group company of
the Development Bank ofJapan to work in private
equity. He joined Sansan,
Inc. in 2017, and was
appointed CFO in 2018 tolead the company’s
financial strategy.

Yasuko is a Legal Counsel
at TMI Associates. Having
registered with the
Dai-Ichi Tokyo Bar
Association in 2002 andworking with a major IT
company, she has been inher current position since2017. In August 2018, shebecame an Outside
Director of Sansan, Inc.
Possessing specialist
knowledge, including withregard to corporate legal
affairs and compliance,
she mainly advises onlegal matters.

Toru is a General Partner
at Incubate Fund.
Following his involvement
in investment
development tasks at
Japan Associated FinanceCo., Ltd. (now JAFCO Group
Co., Ltd.), he founded his
own venture capitalcompany. Having
become an Outside
Director of Sansan, Inc. inAugust 2007, he makes
general management
recommendations.

A public healthresearcher and doctor,
Yoshiki is currently activein the field of behavioral
and data science. He also
possesses experience inbusiness startups, having
been a director withseveral companies. He
became an Outside
Director of Sansan, Inc. inJanuary 2019. In addition
to his knowledge in thefield of data analysis andutilization, he makes
general management
recommendations.

Toko is a Director at
CyberAgent, Inc., a Junior
Accountant, and a Juris
Doctor. After working withJapan Airlines Co. Ltd.,she joined CyberAgent as
a Standing Auditor, and in2017 became a Director.
Toko became an Outside
Director of Sansan, Inc. inAugust 2021. She gives
guidance on auditing anddiversity, applying
accounting and legal
knowledge along withcorporate experience.

580,000

22,00013,3000430,000

00

17 out of 17 times

17 out of 17 times

17 out of 17 times

17 out of 17 times

17 out of 17 times

17 out of 17 times

17 out of 17 times

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OutsideIndependent

Independent

03
The Structures Underpinning
Sustainable Growth

Chika Terada

Business Strategies to Increase
Corporate Value

Name

Board Meeting Attendance
Fiscal 2020
Skills, Diversity●

Finance, Accounting, Legal

●

●

●

Personnel, HR Development
Global-Mindedness●

ESG, SDGs

●

●

●

●
●

●

●

●
●

*1 CEO: Chief Executive Officer *2 CRO: Chief Revenue Officer *3 CTO: Chief Technology Officer *4 CHRO: Chief Human Resources Officer *5 CFO: Chief Financial Officer *6 As of May 2021

54

Sansan, Inc.

ANNUAL REPORT 2021

55

Corporate and Financial Information

Consolidated Financial Statements (each fiscal year ended May 31)
Net Sales

Gross Profit(Millions of yen)

16,184Company Information*1
13,362
10,206

Legal name:

Sansan, Inc.

Location of head office:Aoyama Oval Building 13F, 5-52-2 Jingumae,(Millions of yen)
■ Gross profit
Gross profit margin

78.8

7,324

84.3

80.4

86.4

14,192

11,541

87.7

2020

2021

8,608
5,888

4,839
3,812

Shibuya-ku, Tokyo 150-0001, Japan

Sites:

2017

Branch offices: Osaka, Nagoya, Fukuoka

2018

2019

2020

2021

2017

2018

2019

Satellite offices: Tokushima, Kyoto, Fukuoka, Hokkaido, Niigata

Group companies:

Sansan Global Pte. Ltd. (Singapore)
Sansan Corporation (United States)
logmi, Inc.

Established:

Operating Profit (Loss)
757

736

(Millions of yen)
339

182

2020

2021

June 11, 2007
-778

Representative:

Chika Terada

Employees:

954 (consolidated)

-790

-849

2018

-945

-3,085-3,061
2017

Capital:Profit (Loss) Attributable to Owners of Parent(Millions of yen)

2019

2020

2021

2017

2018

2019

6,312 million yen

Basic Share Information*1

Basic Earnings per Share (EPS)

Total Assets / Net Assets(Yen)(Millions of yen)
■ Total assets

10.98

Stock code:

4443

Exchange:

Tokyo Stock Exchange, First Section

5.86■ Net assets-40.42-47.18June 1 to May 31 of the following year

Manager of shareholder register:Tokyo Securities Transfer Agent Co., Ltd.

Share unit number:

100 shares

Total number of shares issued:

31,183,645

Total number of shareholders:Shareholder composition:

172-168.44
2017

2018

2019

2020

2021

Net Assets per Share (BPS)

3,197

338.89403.57114.602019(Millions of yen)
■ Cash flows from operating activities■ Cash flows from investing activities■ Cash flows from financing activities

198-160.42

1,072

151

2017

2018

2020

2021

11,563

3,132 2,822

-376

-679
-1,609-2,282

2017

2018

2019

-311.50■ Other corporations 2.52%■ Securities companies 0.69%

2018

3,826

■ Individuals and others 46.27%■ Financial institutions 18.08%

2017

3,372

1,312

Cash Flow(Yen)■ Foreign corporations, etc. 32.44%

5,299

3,489

12,584

10,552

9,079

Fiscal year:

24,31022,8193,011-551-2,902-7,189
2019

2020

2021

2020

2021

*1 As of May 2021

56

Sansan, Inc.

ANNUAL REPORT 2021

57

© Sansan, Inc.