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

July 14, 2020

Financial Results for FY2019 Q4Company name: Sansan, Inc.
Listing:
Tokyo Stock Exchange
Securities code:
4443
URL:
https://www.corp-sansan.com/
Representative:
Chikahiro Terada, Representative Director & CEO
Inquiries:
Muneyuki Hashimoto, Executive Officer, CFO
TEL:+81-3-6758-0033
Scheduled date of ordinary general meeting of shareholders:August 26, 2020
Scheduled date to commence dividend payment:–
Scheduled date to file annual securities report:
August 27, 2020
Preparation of supplementary materials on financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors andanalysts)(Millions of yen with fractional amounts rounded down, unless otherwise noted)

1. Consolidated financial results for the fiscal year ended May 31, 2020 (from June 1, 2019 to May
31, 2020)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended
May 31, 2020
May 31, 2019

Operating profit

Millions of yen% Millions of yen

13,362
10,206

Note: Comprehensive income

30.9
39.3

% Millions of yen

757
(849)

435
(891)

–
–

% Millions of yen

339
(945)

–
–

%
–
–

For the fiscal year ended May 31, 2020: ¥331 million [–%]For the fiscal year ended May 31, 2019: ¥(950) million [–%]

Basic earnings per
share
Fiscal year ended
May 31, 2020
May 31, 2019

Profit attributable toowners of parent

Ordinary profit

Diluted earnings
per share

Return on equity

Ordinary profit/
total assets

Operating profit/
net sales

Yen

Yen

%

%

%

10.98
(40.42)

10.86
–

4.9
(40.5)

2.7(12.4)

5.7(8.3)

Reference:

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended May 31, 2020: ¥(51) million
For the fiscal year ended May 31, 2019: ¥– million
Notes: 1. The Company conducted a stock split of common share at a ratio of 10,000-for-1 on June 15, 2018. Basicearnings per share is calculated on the assumption that said splitting of shares had been made at the beginning of
the previous fiscal year.
2. Diluted earnings per share for the fiscal year ended May 31, 2019 is not stated because, although potential shares
exist, basic loss per share was recorded.

(2) Consolidated financial position
Total assets
As of
May 31, 2020
May 31, 2019

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

22,8199,079

10,552
3,372

46.2
37.0

338.89114.60Reference:

EquityAs of May 31, 2020:¥10,541 million
As of May 31, 2019:¥3,362 million
Note: The Company conducted a stock split of common share at a ratio of 10,000-for-1 on June 15, 2018. Net assets per
share are calculated on the assumption that said splitting of shares had been made at the beginning of the previous
fiscal year.

(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended
May 31, 2020
May 31, 2019

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

2,822
1,072

(7,189)(2,282)

11,563
3,132

12,6635,468

2. Cash dividends
Annual dividends

Fiscal year ended
May 31, 2019
Fiscal year ended
May 31, 2020
Fiscal year ending
May 31, 2021
(Forecast)

Total cash
dividends(Total)Firstquarterend

Secondquarterend

Third
quarterend

Fiscalyear-end

Yen

Yen

Yen

Yen

Yen Millions of yen

Total

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

%

–

0.00

–

0.00

0.00

–

–

–

–

0.00

–

0.00

0.00

–

–

–

–

0.00

–

0.00

0.00

–

3. Consolidated earnings forecasts for the fiscal year ending May 31, 2021 (from June 1, 2020 to
May 31, 2021)
Net sales

Fiscal year ending
May 31, 2021

Millions ofyen
15,767to
16,302(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings perowners of parent
share

Operating profit
%
18.0
to
22.0

Millions of
yen
757
to
1,010

%

Millions of
yen

0.0
to
33.4

–

%
–

Millions of
yen
–

%
–

Yen
–

Note: Although the Company is expecting to record a surplus in ordinary profit and profit attributable to owners of parent,
it is difficult to make a precise forecast. Accordingly, the Company will refrain from disclosing a concrete forecast at
this point in time. For details, please refer to “(4) Future outlook” under “1. Qualitative information on consolidated
financial results for the fiscal year ended May 31, 2020” on page 5 of the attached materials.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes in accounting policies due to revisions to accounting standards and other regulations:Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement: None
(3) Number of issued shares (common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of May 31, 2020

31,138,853 shares

As of May 31, 201929,432,353 sharesb. Number of treasury shares at the end of the period
As of May 31, 2020–

As of May 31, 2019–c. Average number of shares outstanding during the period
Fiscal year ended May 31, 2020

30,928,528 sharesFiscal year ended May 31, 201923,394,286 shares

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

(Reference) Overview of non-consolidated financial results
Non-consolidated financial results for the fiscal year ended May 31, 2020 (from June 1, 2019 to May
31, 2020)(1) Non-consolidated operating results
Net sales
Fiscal year ended
May 31, 2020
May 31, 2019

Operating profit

Millions of yen

13,358
10,200Ordinary profit% Millions of yen

31.0
39.4

Basic earnings per
share
Fiscal year ended
May 31, 2020
May 31, 2019

(Percentages indicate year-on-year changes.)

758
(848)

Profit% Millions of yen––

Diluted earnings per
share

Yen

Yen

12.56
(40.48)

12.42
–

484
(893)

% Millions of yen

–
–

388
(947)

%

–
–

(2) Non-consolidated financial position
Total assets
As of
May 31, 2020
May 31, 2019

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

22,881
9,082

10,612
3,376

46.3
37.1

340.82114.71

Reference:

EquityAs of May 31, 2020:¥10,602 million
As of May 31, 2019:¥3,365 million
Notes: 1. The Company conducted a stock split of common share at a ratio of 10,000-for-1 on June 15, 2018. Net assets per
share and basic earnings per share are calculated on the assumption that said splitting of shares had been made at
the beginning of the previous fiscal year.
2. Diluted earnings per share for the fiscal year ended May 31, 2019 are not described here because, although there
are potentially dilutive shares, basic loss per share was recorded.

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

Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q4

Attached Material
Index
1. Qualitative information on consolidated financial results for the fiscal year ended May 31, 2020 .......... 2(1) Explanation of operating results ......................................................................................................... 2(2) Review of financial position............................................................................................................... 4(3) Overview of cash flows ...................................................................................................................... 4(4) Future outlook .................................................................................................................................... 5
2. Basic concept regarding selection of accounting standards ...................................................................... 6
3. Consolidated financial statements and significant notes thereto............................................................... 7(1) Consolidated balance sheet ................................................................................................................ 7(2) Consolidated statement of income and consolidated statement of comprehensive income ............... 9
Consolidated statement of income...................................................................................................... 9
Consolidated statement of comprehensive income .......................................................................... 10(3) Consolidated statement of changes in equity ................................................................................... 11(4) Consolidated statement of cash flows .............................................................................................. 13(5) Notes to consolidated financial statements ....................................................................................... 15
Notes on premise of going concern .................................................................................................. 15
Additional information ..................................................................................................................... 15
Segment information ........................................................................................................................ 15
Per share information ....................................................................................................................... 18
Significant events after reporting period .......................................................................................... 19- 1 -Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q4

1. Qualitative information on consolidated financial results for the fiscal year ended
May 31, 2020
(1) Explanation of operating results
Under the mission of “Turning encounters into innovation,” the Group is developing services tied tosolving various issues that companies and business people face, such as business card management, byusing new approaches that combine “technology and data-input-based business card digitization
systems” with “cloud software.”In the fiscal year ended May 31, 2020, the Company engaged in initiatives, such as strengthening thesales structure through strategic hiring, aimed at realizing continuous growth of net sales andexpanding its optional functions usable within “Sansan,” a cloud-based business card management
service. Some negative effects arose in the fourth quarter under review due to the impact of the spreadof a novel coronavirus (COVID-19), which included impacts on the number of new subscriptionsacquired for the Sansan Business, and the holding of business events in the Eight Business. Moreover,
we recorded extraordinary losses and non-operating expenses associated with the cancellation of alarge-scale conference sponsored by the Company that was to be held in March 2020, a partial review
of recruitment plans and other factors.
As a result, net sales totaled ¥13,362,370 thousand (up 30.9% year on year), gross profit totaled¥11,541,051 thousand (up 34.1% year on year), and gross profit margin was 86.4% (up 2.1 points year
on year) in the fiscal year under review. Although currently still in a phase of implementing aggressive
investment aimed at maximizing shareholder value and corporate value over the medium to long term,
the steady growth in net sales allowed us to move into the black with operating profit of ¥757,266
thousand (compared with operating loss of ¥849,739 thousand in the previous fiscal year). Ordinary
profit totaled ¥435,444 thousand (compared to ordinary loss of ¥891,689 thousand in the previous
fiscal year), due to the recording of loss on cancellation of rental contracts of a portion of office,occurring in the fourth quarter under review, of ¥187,784 thousand in non-operating expenses. In
addition, profit attributable to owners of parent totaled ¥339,670 thousand (compared to loss
attributable to owners of parent of ¥945,539 thousand in the previous fiscal year).
Results by segment are as follows.
Our services of each business and our business models are described on the following IR section of theCompany’s website. Please refer to the URL below for details.
IR section (description of Business Information):
https://ir.corp-sansan.com/en/ir/management/businessinformation.html(i) Sansan Business
The Company is developing services in the B2B business card management service market. As theCompany has grown, this market has seen 18-fold expansion from 2010 to 2018. The Sansan
Business, operated by the Company, holds an 82.8% share (Note 1.) in this market. Moreover,further expansion of the size of this market is continuing, which is mainly a result of recent changes
to employee working styles like remote work due to the spread of COVID-19, new ways ofthinking toward digital transformation, and greater attention being attracted to the SaaS (Software
as a Service) products. As for the digital transformation market, its worth in 2021 is forecasted tobe ¥1,435.7 billion (an increase of ¥870.4 billion since 2017) (Note 2.), while the SaaS market in
Japan is forecasted to reach ¥817.4 billion by 2023 (an increase of ¥337.6 billion since 2018) (Note3.).
For the fiscal year under review, the Company continued to engage in initiatives, such as
strengthening the sales structure through strategic hiring and expanding its optional functions,
aimed at further increasing the number of subscriptions and the monthly sales per subscription for“Sansan.” As a result, in addition to progress in the use of our services by major manufacturers andgovernment agencies, the Company has also steadily acquired new subscriptions among medium tosmall enterprises due to a revision of pricing strategy. At the end of the fiscal year under review, the- 2 -Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q4

number of “Sansan” subscriptions totaled 6,754, up 16.0% year on year. On the other hand,monthly sales per subscription rose only slightly to ¥161 thousand, up 3.2% year on year due todecreases in some sales regarding new contracts in May 2020 as a result of the spread of COVID19. Furthermore, as a result of carrying out ongoing initiatives to expand use among existingcustomers to achieve a stronger customer foundation, the last 12 months average of monthly churnrate (Note 4.) was 0.60%, an improvement of 0.08 points year on year.
As a result, net sales for the fiscal year under review totaled ¥12,284,335 thousand (up 27.4% year
on year), of which recurring net sales (fixed revenue) in “Sansan” totaled ¥11,169,485 thousand (up30.0% year on year). Segment profit totaled ¥4,794,017 thousand (up 64.8% year on year).
In “Sansan,” against a backdrop of remote working and working styles that use the internet rapidly
expanding, the Company has started to provide “Virtual Cards” function from June 16, 2020. By
using the function, “Sansan” users will be able to easily send their business card information using
the internet. As backed by the report by the government advisory body set up to examine COVID19, and the conclusions of various industry groups, there is a rising social need for the exchange ofbusiness cards online as a new working styles necessary for the long-term prevention of the spreadof COVID-19. Therefore, by meeting this need through the function, we will further raise theservice value.
Notes:1. Based on “Contact Management Service Market and SFA/CRM Businesses 2020” by
Seed Planning, Inc.
2. Based on “2018 Outlook of the Digital Transformation Market” by Fuji Chimera
Research Institute
3. Based on “2019 New Software Business Markets” by Fuji Chimera Research Institute
4. Average monthly churn rate over the past 12 months, which is the ratio of decrease inmonthly fees associated with contract cancellations to total monthly fees from existing
contracts (results of the same period of the previous year also changed in line with therevision of a portion of calculation method)(ii) Eight BusinessIn the Eight Business, the Company bases the business on the application that enables users to use
the profile management and business card management features at no cost. On top of this, theCompany provides the B2C services, “Eight Premium,” for individuals who want access to extra
user functions and the B2B services such as “Eight Company Premium,” a service that allows thesharing of business cards registered on “Eight” within a company, “Eight Ads,” a service thatenables advertisements to be disseminated to “Eight” users, “Meets,” a business event that
increases productivity by efficiently matching buyers and sellers, and “Eight Career Design,” arecruitment related service that enables hiring companies (corporate client users) to approach job
seekers (individual users) on the job search platform.
In the fiscal under review, the Company worked on strengthening monetization of the B2B service
through “Eight Company Premium” and other methods. As a result, the number of “Eight Company
Premium” subscriptions at the end of the fiscal year under review totaled 1,535, an increase of
85.4% year on year and the number of “Eight” users (Note 5.) totaled 2.70 million, an increase of
0.26 million year on year. During the fourth quarter under review, the holding of some businessevents such as “Meets” were canceled due to the impact of the spread of COVID-19.
As a result, net sales for the fiscal year under review totaled ¥1,078,035 thousand (up 90.3% year
on year), of which net sales from B2C services totaled ¥289,286 thousand (up 21.7% year on year),and net sales from B2B services totaled ¥788,748 thousand (up 139.8% year on year). Segment loss
was recorded at ¥894,281 thousand (compared to ¥1,212,980 thousand in the previous fiscal year)
due to being in the phase in which upfront investments were being made to increase future
profitability.

- 3 -Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q4

Note: 5. Number of confirmed users who registered their business card to their profile after
downloading the application(2) Review of financial position
AssetsTotal assets at the end of the fiscal year under review were ¥22,819,768 thousand, up ¥13,740,651
thousand from the end of the previous fiscal year. This was primarily due to an increase of ¥7,188,190
thousand in cash and deposits from issuing new shares in association with in association with the listingof the Company’s common shares on the Tokyo Stock Exchange Mothers in June 2019, and an increaseof ¥5,847,795 thousand in investment securities as a result of the acquisition of shares of WingArc1st
Inc. (hereinafter “WingArc1st”).
Liabilities
Total liabilities at the end of the fiscal year under review were ¥12,267,147 thousand, up ¥6,560,995
thousand from the end of the previous fiscal year. This was primarily due to an increase of ¥3,658,884
thousand in long-term borrowings as a result of borrowing money to procure investment capital for
WingArc1st, an increase of ¥1,134,356 thousand in current portion of long-term borrowings and anincrease of ¥1,366,645 thousand in advances received from receiving a lump-sum payment of contract
term fees from customers.
Net assets
Net assets at the end of the fiscal year under review were ¥10,552,621 thousand, up ¥7,179,656
thousand from the end of the previous fiscal year. This was primarily due to increases of ¥3,424,149
thousand in each of share capital and capital surplus from issuing new shares in association with thelisting of the Company’s common shares on the Tokyo Stock Exchange Mothers in June 2019, and anincrease of ¥339,670 thousand in retained earnings due to recording of profit attributable to owners ofparent. In addition, the Company reduced capital surplus by ¥947,106 thousand and transferred thatamount to retained earnings in order to eliminate cumulative loss early and achieve future flexible anddynamic capital policy based on the resolution at the meeting of the Board of Directors that took placeon July 30, 2019.
(3) Overview of cash flows
Cash and cash equivalents (hereinafter “capital”) for the fiscal year ended May 31, 2020 totaled¥12,663,445 thousand, an increase of ¥7,194,950 thousand compared to the previous fiscal year (up131.6% year on year). This increase includes the effect of ¥1,279 thousand due to exchange
fluctuations on capital.
The respective cash flow positions and the factors thereof in the fiscal year under review are as follows.
Cash flows from operating activities
The amount of capital provided by operating activities totaled ¥2,822,265 thousand (up 163.1% year onyear). The main reasons for this increase in capital were recognition of profit before income taxes of¥335,074 thousand, recognition of depreciation, non-cash expense, of ¥615,862 thousand, and loss on
cancellation of rental contracts of ¥187,784 thousand, as well as an increase of ¥1,366,665 thousand inadvances received, and the main factors for the decrease in capital were an increase in trade receivablesof ¥118,352 thousand and a decrease in accounts payable - other of ¥108,523 thousand.
Cash flows from investing activities
The amount of capital used in investing activities totaled ¥7,189,107 thousand (¥2,282,733 thousand
used in the previous fiscal year). This was primarily due to purchase of investment securities including
the acquisition of shares, etc. of WingArc1st of ¥5,901,328 thousand, purchase of property, plant andequipment of ¥260,527 thousand and purchase of intangible assets of ¥535,874 thousand.

- 4 -Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q4

Cash flows from financing activities
The amount of capital provided by financing activities totaled ¥11,563,071 thousand (up 269.2% year
on year). This was primarily due to ¥6,820,196 thousand in proceeds from issuance of shares inassociation with the listing of the Company’s common shares on the Tokyo Stock Exchange Mothers,and ¥5,460,545 thousand in proceeds from long-term borrowings including capital to acquire shares of
WingArc1st.
(4) Future outlook
In the fiscal year ending May 31, 2021, the Company is expecting to see net sales between ¥15,767
million and ¥16,302 million (up 18.0% to 22.0% year on year) and operating profit between ¥757
million and ¥1,010 million (up 0.0% to 33.4% year on year).
In addition to expecting that this uncertain business environment caused by the impact of COVID-19
will continue, we are disclosing our forecasts in range as we plan to dynamically and flexibly makevarious investments to reaccelerate net sales growth in the medium to long term in response to thebusiness environment, investment opportunities and the progress of new businesses.
Although the Company is expecting to record a surplus in ordinary profit and profit attributable toowners of parent in the fiscal year ending May 31, 2021, during this current phase in which active
investments are being made with the aim of maximizing both its shareholder and corporate value overthe medium to long term, it is difficult to make a reasonable forecast regarding parts of non-operating
income and expenses. Accordingly, the Company will refrain from disclosing a concrete forecast at thispoint in time.
We are expecting COVID-19 to have a certain amount of negative impact on financial results for the
first and second quarters of the fiscal year ending May 31, 2021, but the upper limit of the range
assumes that this negative impact will not occur in the second quarter for the most part, and the lower
limit assumes that this impact will continue until the end of the fiscal year ending May 31, 2021. In the
Sansan Business, we are factoring in a weakening of the acquisition of new subscriptions to a certain
extent, and we expect steady improvements as the overall economy continues to recover throughout theperiod. In the Eight Business, we have prepared forecasts on the assumption that business events will
not be able to be held offline for the time being.
Consolidated monthly sales in June 2020 (Note 6.) has increased 18.1% year on year.
Specifically, we are planning to further strengthen existing businesses, such as by expanding thedissemination of “Virtual Cards” function, create new businesses and strengthen other types of solution
services as various investment opportunities to reaccelerate net sales growth in the medium to longterm.
We are aiming for net sales growth of 30% or more in the fiscal year ending May 31, 2022 by actively
promoting strategies to realize growth in the medium to long term and the investments to do so in thefiscal year ending May 31, 2021.
Note: 6. Result under management accounting- 5 -Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q4

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

- 6 -Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q4

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

5,627,035
318,354322,660
266
32,996(2,704)
6,298,608- 7 -As of May 31, 2020

12,815,225
441,060
410,582338
176,606(3,621)
13,840,192

502,742

653,544(164,952)(302,127)

337,789
158,434(89,299)
69,134
406,924

351,416
186,405(123,354)
63,051
414,467

834,737390
835,127

925,803
261
926,064

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

6,941,596
549,412145,1852,850
7,639,043
8,979,576
22,819,768

Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q4(Thousands of yen)
As of May 31, 2019
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Advances received
Provision for bonuses
Provision for loss on closure of business locations
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Total shareholders’ equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive income
Share acquisition rights
Total net assets
Total liabilities and net assets- 8 -As of May 31, 2020

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

102,922
20,0001,267,490
596,265
225,471429,584
5,289,822
289,551–
114,449
8,335,558

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

3,892,598
38,9903,931,588
12,267,147

2,812,501
1,500,000(942,592)
3,369,909

6,236,650
3,977,043
344,184
10,557,879(7,607)(7,607)
10,663
3,372,965
9,079,116(15,921)(15,921)
10,663
10,552,621
22,819,768

Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q4(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Thousands of yen)
Fiscal year ended
May 31, 2019
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Foreign exchange gains
Subsidy income
Cancellation penalty income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses

Fiscal year ended
May 31, 2020

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

13,362,370
1,821,319
11,541,051
10,783,785
757,266

2,079
1,492
475
10,343
1,679
16,069

1,989

4,766

18,681
1,012–

Loss on cancellation of leases
Share issuance costs
Stock market listing expenses
Loss on cancellation of rental contracts
Provision for loss on closure of business locations

8,836
10,5308,886
16,1306,960

Commission expenses
Loss on investments in investment partnerships
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on reversal of share acquisition rights
Total extraordinary income–
28,102
15,410187,784–––

19,458–51,2471,910
58,019(891,689)

6,064
330,047
435,444

4,725

–
–

4,725

Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Loss on cancellation of events

–
2,198
3,007
1,030
8,226

16,38734,250

–

2,285

8,428
37,85454,087

Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred

50,637(937,602)
7,937–

100,370335,074
140,588(145,185)

Total income taxes
Profit (loss)
Profit (loss) attributable to owners of parent

7,937(945,539)(945,539)(4,596)339,670339,670- 9 -Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q4

Consolidated statement of comprehensive income(Thousands of yen)
Fiscal year ended
May 31, 2019
Profit (loss)
Other comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent- 10 -

Fiscal year ended
May 31, 2020

(945,539)

339,670(4,682)(4,682)(950,221)(8,313)(8,313)331,357(950,221)

331,357

Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q4(3) Consolidated statement of changes in equity
Fiscal year ended May 31, 2019
(Thousands of yen)
Shareholders’ equity
Total shareholders’equityShare capital

Capital surplus

Retained earnings

3,164,128

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

1,315,448

Issuance of new shares

1,500,000

1,500,000–

3,000,000

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

3,294,661–

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

Net changes in items
other than shareholders’equity––––Total changes during period(351,627)

56,9652,349,122

2,054,460

Balance at end of period

2,812,501

1,500,000(942,592)

3,369,909

Balance at beginning of
periodChanges during period

Accumulated other comprehensive income
Foreign currencytranslation
adjustment

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

1,312,523

Issuance of new shares

–

–

–

3,000,000

Deficit disposition

–

–

–

–

Profit attributable toowners of parent

–

–

–

(945,539)

Net changes in items
other than shareholders’equity(4,682)(4,682)

10,663

5,981

Total changes during period(4,682)(4,682)

10,6632,060,441

Balance at end of period(7,607)(7,607)

10,663

3,372,965

Balance at beginning of
periodChanges during period- 11 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q4

Fiscal year ended May 31, 2020
(Thousands of yen)
Shareholders’ equity
Total shareholders’equityShare capital

Capital surplus

Retained earnings

2,812,501

1,500,000(942,592)

3,369,909

3,424,149

3,424,149–

6,848,298

Deficit disposition–(947,106)

947,106–

Profit attributable toowners of parent––

339,670339,670

Net changes in items
other than shareholders’equity––––Total changes during period

3,424,149

2,477,043

1,286,777

7,187,969

Balance at end of period

6,236,650

3,977,043

344,184

10,557,879

Balance at beginning of
periodChanges during period
Issuance of new shares

Accumulated other comprehensive income
Foreign currencytranslation
adjustment

Total accumulated
othercomprehensive
incomeShare acquisitionrightsTotal net assets(7,607)(7,607)

10,663

3,372,965

Issuance of new shares

–

–

–

6,848,298

Deficit disposition

–

–

–

–

Profit attributable toowners of parent

–

–

–

339,670

Net changes in items
other than shareholders’equity(8,313)(8,313)–(8,313)

Total changes during period(8,313)(8,313)–

7,179,656

Balance at end of period(15,921)(15,921)

10,663

10,552,621

Balance at beginning of
periodChanges during period- 12 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q4(4) Consolidated statement of cash flows(Thousands of yen)
Fiscal year ended
May 31, 2019
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment loss
Increase (decrease) in provision for loss on closureof business locations
Share issuance costs
Loss on retirement of non-current assets
Loss on cancellation of rental contracts
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Interest and dividend income
Interest expenses
Gain on reversal of share acquisition rights
Commission expenses
Loss (gain) on investments in investment
partnerships
Share of loss (profit) of entities accounted for using
equity method
Decrease (increase) in trade receivables
Decrease (increase) in prepaid expenses
Decrease (increase) in consumption taxes refund
receivable
Decrease (increase) in other assets
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Increase (decrease) in advances received
Increase (decrease) in accrued consumption taxes
Increase (decrease) in other liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Payments of leasehold deposits
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares
Proceeds from issuance of share acquisition rights
Other, net
Net cash provided by (used in) financing activities- 13 -

Fiscal year ended
May 31, 2020

(937,602)
459,657
34,250335,074
615,862
37,854

6,960(6,960)10,53016,387
16,13028,102
8,428
187,784(1,812)916

65,605(2,079)4,766(4,725)–90,587(1,989)18,681–
19,454

–

2,285

–

51,247(111,289)(67,067)(118,352)(84,692)

83,137(88)

49,92936,28550,277
1,125,161
184,745
24,351
39,993
1,083,592
1,297(4,822)(7,258)1,072,808

6,356
6,753
(108,523)
1,366,665
246,512102,380
43,387
2,847,728
2,216(19,721)(7,957)2,822,265(163,176)(316,310)(574,297)(1,093,800)(226,962)
91,813(2,282,733)–(260,527)(535,874)(5,901,328)(507,635)
16,259(7,189,107)

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

2,000
5,460,545(686,760)
6,820,196–(32,910)
11,563,071

Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q4(Thousands of yen)
Fiscal year ended
May 31, 2019
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 14 -

Fiscal year ended
May 31, 202096

(1,279)1,922,476
3,546,018
5,468,495

7,194,950
5,468,495
12,663,445

Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q4(5) Notes to consolidated financial statements
Notes on premise of going concern
Not applicable.
Additional information
Accounting estimates associated with the spread of COVID-19
Regarding the impact of COVID-19, it is difficult to accurately estimate how it will spread in the
future, when it will end, etc. However, in the fiscal year under review, based on the assumption that theeconomic impact of the spread of COVID-19 will continue until the end of the fiscal year ending May
31, 2021, accounting estimates, such as the recoverability of deferred tax assets, were made.
Segment informationa. Segment information
1. Description of reportable segments
The reportable segments used by the Group are components for which discrete financial
information is available, and whose operating results are regularly reviewed by the Board of
Directors, in particular, to make decisions about resources to be allocated to the segments andassess their performance.
In the operation of its business activities, the Group has established business divisions andcompanies to engage in specific services, and it formulates comprehensive strategies for theservices that each business division and company provides.
Accordingly, the Group’s operations are made up of segments engaged in specific services
under the basic operating structures of business divisions or companies, and it has tworeportable segments of the “Sansan Business” and the “Eight Business.”
Descriptions of the services belonging to each segment are stated below.
Reportable segment
Sansan Business
Eight Business

Description of services in segment
Provision of “Sansan,” a B2B cloud-based business card management
service
Provision of “Eight,” a business card management app

2. Methods of calculating the amounts of net sales, profit or loss, assets, liabilities, and otheritems for each reportable segment
The accounting method used for operating segments reported is the same as the description in“Matters forming the basis of preparing the consolidated financial statements.”
The profit stated for the reportable segments is a figure based on operating profit.

- 15 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q4

3. Information on the amounts of net sales, profit or loss, assets, liabilities, and other items foreach reportable segment
Fiscal year ended May 31, 2019
Reportable segments
SansanBusiness

Eight Business

Total(Thousands of yen)Amount in the
consolidated
Adjustment
financial(Note) 1
statement(Note) 2

Net sales
Sales to external customers
Intersegment sales or transfers

9,639,479–

566,535–

10,206,014–––

10,206,014
–

Total

9,639,479

566,535

10,206,014–

10,206,014

Segment profit (loss)

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

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

282,50943,413

325,923

133,734

459,657

Other items
Depreciation

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

Fiscal year ended May 31, 2020
Reportable segments(Thousands of yen)Amount in the
consolidated
Adjustment
financial(Note) 1
statement(Note) 2

SansanBusiness

Eight BusinessTotal

Net sales
Sales to external customers
Intersegment sales or transfers

12,284,335–

1,078,035–

13,362,370–––

13,362,370
–

Total

12,284,335

1,078,035

13,362,370–

13,362,370

Segment profit (loss)

4,794,017(894,281)

3,899,736(3,142,469)

757,266

319,930

12,085332,016

283,845615,862

Other items
Depreciation

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

b. Information associated with reportable segments
1. Information for each product or service
This information is omitted because the same information has been presented in Segment
information.
2. Information for each region(1) Net sales
This has been omitted because net sales to external Japanese customers account for morethan 90% of net sales on the consolidated statement of income.
- 16 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q4(2) Property, plant and equipment
This has been omitted because the value of property, plant and equipment in Japanaccounts for more than 90% of the value of property, plant and equipment on the
consolidated balance sheet.
3. Information for each of main customers
This has been omitted because there is no external customer that accounts for 10% or more of
net sales recorded on the consolidated statement of income.
c. Disclosure of impairment loss on non-current assets for each reportable segment
Fiscal year ended May 31, 2019
Impairment losses of ¥13,157 thousand for the Sansan Business, and ¥21,092 thousand forcorporate expenses not belonging to any reportable segment were recorded.
Fiscal year ended May 31, 2020
Impairment losses of ¥6,387 thousand for the Sansan Business, ¥9,648 thousand for the Eight
Business, and ¥21,818 thousand for corporate expenses not belonging to any reportable segment
were recorded.
d. Amortization and unamortized balance of goodwill for each reportable segment
Not applicable.
e. Information about gain on bargain purchase for each reportable segment
Not applicable.

- 17 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q4

Per share information
Fiscal year ended May 31, 2019(from June 1, 2018 to May 31, 2019)(Yen)
Fiscal year ended May 31, 2020
(from June 1, 2019 to May 31, 2020)

Net assets per share

114.60338.89Basic earnings (loss) per share(40.42)

10.98

–

10.86

Diluted earnings per share

Notes: 1. The Company conducted a stock split at 10,000-for-1 on June 15, 2018 based on resolution at the meeting of
the Board of Directors held on May 29, 2018. Net assets per share and basic loss per share are calculated on
the assumption that the stock split had been made at the beginning of the previous fiscal year.
2. Diluted earnings per share for the previous fiscal year is not stated because, although a balance of shareacquisition rights existed, the Company’s shares were unlisted as of the end of the previous fiscal year and itis therefore not possible to ascertain an average share price for that fiscal year, and also because a basic loss
per share was recorded.
3. Basis for calculation of basic loss per share is as follows:
Fiscal year ended May 31, 2019(from June 1, 2018 to May 31, 2019)

Fiscal year ended May 31, 2020
(from June 1, 2019 to May 31, 2020)

Profit (loss) attributable to owners ofparent(Thousands of yen)

(945,539)

339,670

Amounts not attributable to commonshareholders(Thousands of yen)––

[Of which preferred dividends(Thousands of yen)]––

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

(945,539)

339,670

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

23,394,286

30,928,528

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

1st Share Acquisition Rights
Number of share acquisition rights:
8 units(Common shares: 80,000 shares)
2nd Share Acquisition Rights
Number of share acquisition rights:
45,000 units(Common shares: 45,000 shares)
3rd Share Acquisition Rights
Number of share acquisition rights:
326,100 units(Common shares: 326,100 shares)
4th Share Acquisition Rights
Number of share acquisition rights:
534,611 units(Common shares: 534,611 shares)- 18 -–

Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q4

Significant events after reporting period
Issuance of share acquisition rights (compensatory stock options)
At the meeting of the Board of Directors held on July 14, 2020, the Company resolved to issue the 5th
Share Acquisition Rights to Directors and Executive Officers of the Company in accordance with theprovisions of Articles 236, 238, and 240 of the Companies Act.
5th Share Acquisition Rights
Number of share acquisition rights

306 units

Class and number of shares to be acquired upon Common shares of the Company, 30,600 shares
exercise of the share acquisition rights(100 shares per one share acquisition right)
Issuance price of share acquisition rights¥71,500 per one share acquisition right

Exercise price of share acquisition rights¥535,000 per one share acquisition rightIssuance price and additional paid-in capital in
the event of issuance of shares upon exercise ofshare acquisition rights

Issuance price: ¥5,350 per one share
Additional paid-in capital: ¥2,675 per one share

Allotment date of share acquisition rights

August 26, 2020

Persons subject to allotment of share acquisition 6 Directors of the Company
rights12 Executive Officers of the Company
Exercise period of share acquisition rights

From September 1, 2021 to August 30, 2030

Exercise conditions of share acquisition rights**

1. The person to whom the share acquisition rights are allotted (the “share acquisition rights holder”) may exercise
his or her share acquisition rights only if the amount of net sales in the Company’s consolidated statement ofincome for the fiscal year ending May 31, 2021 has exceeded ¥16,034 million.
2. The share acquisition rights holders are required to have a position in the Company or a subsidiary and associateof the Company as Director, Audit & Supervisory Board Member or employee at the time of exercising theshare acquisition rights. However, this shall not apply in the event of resignation due to the expiration of theterm of office, mandatory retirement, or when a justifiable reason is acknowledged at a meeting of the Board of
Directors.
3. In the event the share acquisition rights holder dies, inheritance shall not be recognized.
4. Pledging of share acquisition rights, or the creation of security interests shall not be permitted.
5. The share acquisition rights may not be exercised if, in so doing, the total number of the Company’s issued
shares at that time would exceed the total number of authorized shares.
6. It shall not be possible to exercise fractions less than one unit of the share acquisition rights.

- 19 -