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.

October 13, 2020

Financial Results for FY2020 Q1
Company name: Sansan, Inc.
Listing:
Tokyo Stock Exchange
Securities code:
4443
URL:
https://www.corp-sansan.com/
Representative:
Chikahiro Terada, Representative Director & CEO
Inquiries:
Muneyuki Hashimoto, Director, CFO
TEL:+81-3-6758-0033
Scheduled date to file quarterly securities report:
October 13, 2020
Scheduled date to commence dividend payment:–
Preparation of supplementary materials on financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors andanalysts)(Millions of yen with fractional amounts rounded down, unless otherwise noted)

1. Consolidated financial results for the first three months of the fiscal year ending May 31, 2021
(from June 1, 2020 to August 31, 2020)(1) Consolidated operating results (cumulative)
Net sales
Three months ended
August 31, 2020
August 31, 2019

Three months ended
August 31, 2020
August 31, 2019

Operating profit

Millions of yen% Millions of yen

3,667
3,100

Note: Comprehensive income(Percentages indicate year-on-year changes.)

18.3–% Millions of yen

193
248

(22.1)–

Three months ended August 31, 2020:Three months ended August 31, 2019:

Basic earnings per
share

Diluted earnings
per share

Yen

Yen

2.75
3.50

2.72
3.45

Profit attributable toowners of parent

Ordinary profit

101
192

% Millions of yen(47.4)–¥89 million [(10.5)%]¥100 million [–%]

(2) Consolidated financial position
Total assets
As ofAugust 31, 2020
May 31, 2020
Reference:

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

22,554
22,81910,66810,55247.1
46.2

EquityAs of August 31, 2020:
As of May 31, 2020:¥10,631 million¥10,541 million

85
106

%

(19.6)–

2. Cash dividends
Annual dividends
First quarter-end

Second quarter-end Third quarter-end

Yen

Fiscal year ended
May 31, 2020
Fiscal year ending
May 31, 2021

Yen–

Fiscal year-end

Yen

0.00

–

Total

Yen

Yen

0.00

0.00

0.00

0.00

–

Fiscal year ending
May 31, 2021
0.00–
(Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: None

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
–

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

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Application of specific accounting for preparing the quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes in accounting policies due to revisions to accounting standards and other regulations:Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: Yes
d. Restatement: None
(4) Number of issued shares (Common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of August 31, 2020

31,138,853 shares

As of May 31, 2020

31,138,853 sharesb. Number of treasury shares at the end of the period
As of August 31, 2020–

As of May 31, 2020–

c. Average number of outstanding shares during the period
For the three months ended August 31, 2020

31,138,853 shares

For the three months ended August 31, 201930,397,777 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
Forward-looking statements, including the 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 FY2020 Q1

Attached Material
Index
1. Qualitative information on quarterly consolidated financial results ......................................................... 2(1) Explanation of operating results ............................................................................................................ 2(2) Explanation of financial position ........................................................................................................... 4(3) Explanation of consolidated earnings forecasts and other forward-looking statements ........................ 4
2. Quarterly consolidated financial statements and significant notes thereto ............................................... 5(1) Quarterly consolidated balance sheet .................................................................................................... 5(2) Quarterly consolidated statements of income and comprehensive income ........................................... 7
Quarterly consolidated statement of income ......................................................................................... 7
Quarterly consolidated statement of comprehensive income ................................................................ 8(3) Notes to the quarterly consolidated financial statements....................................................................... 9(Notes on premise of going concern)..................................................................................................... 9(Changes in accounting estimates) ........................................................................................................ 9(Notes on significant changes in the amount of shareholders’ equity) .................................................. 9(Segment information, etc.) ................................................................................................................... 9- 1 -Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q1

1. Qualitative information on quarterly consolidated financial results(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 by using new approaches that combine“technology and data-input-based business card digitization systems” with “cloud software.”In the first three months of the fiscal year ending May 31, 2021 (“the period under review”), an
uncertain business environment has continued despite a relatively moderate recovery trend comparedwith April and May, when the state of emergency declaration was issued due to the effect of COVID19. Under such circumstances, the Company engaged in initiatives such as strengthening the sales
structure, including human resources, in order to realize continuous growth of net sales. In addition, theCompany engaged in initiatives for expanding use of the “Virtual Cards” function usable within“Sansan,” a cloud-based business card management service and “Eight,” the business card application.
As a result, net sales totaled ¥3,667,253 thousand (up 18.3% year on year), gross profit totaled¥3,229,644 thousand (up 22.5% year on year), and gross profit margin was 88.1% (up 3.1 points year
on year) in the period under review. On the other hand, all profit items following operating profit were
down year on year. This was primarily due to a year-on-year increase of ¥338,202 thousand inadvertising expenses in line with the implementation of new TV commercial rollout that was started inperiod under review aimed at promoting the use of the new “Virtual Cards” function, along with anincrease of ¥229,966 thousand in personnel expenses due to the boosted hiring of employees. Operating
profit was ¥193,918 thousand (down 22.1% year on year), ordinary profit was ¥101,388 thousand(down 47.4% year on year), and profit attributable to owners of parent was ¥85,545 thousand (down
19.6% year on year).
In our development of new services, we worked on the launch of services including our “Bill One”
service for digitizing and taking online receipt of invoices, for which we apply technologies for highly
accurate digitization of business cards that we have accumulated through the “Sansan” and “Eight”
businesses to fields other than business cards. Largely with the aim of preventing further spread of
COVID-19, companies have been striving to diversify working arrangements by setting up remote
work measures, while also calling for greater productivity. Amid that scenario, substantial challenges
persist particularly in terms of the notion that many employees must maintain a physical presence in theworkplace in order to receive and process paper documents with respect to invoicing and related works.
Accordingly, as we consider these services as the services that contribute to solving challenges relating
to the implementation of remote working and BCP (business continuity plans), we will first establish
the business processes and otherwise engage in efforts geared to stable service provision.
In addition, the Company acquired the shares of logmi, Inc. (“logmi”) and made it a subsidiary on
August 31, 2020. The Company aims to further expand the logmi’s operating results by utilizing theclient and user bases that the Group has built up to date, by adopting sales and data utilization knowhow and by implementing cross-selling. In addition, we will work on further improving the service
value of both companies by developing collaborative products in the event-related and advertisingrelated businesses and by implementing various efforts such as an initiative to boost the value oflogmi’s database of news content. The Company expects for logmi’s operating results to contribute to
the consolidated financial results from the second quarter of the fiscal year ending May 31, 2021 (fromSeptember 1, 2020).
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- 2 -Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q1(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 period under review, the Company continued to engage in initiatives, such as strengthening
the sales structure through strategic hiring and expanding use of “Virtual Cards” function, aimed atfurther increasing the number of subscriptions and the monthly sales per subscription for “Sansan.”Although the pace of acquiring new subscriptions has slowed down due to the impact of COVID19, as a result of the expanded use of our services by government agencies and financial
institutions and the steadily acquired new customers among medium to small enterprises, thenumber of “Sansan” subscriptions at the end of the period under review, totaled 6,969, up 15.5%
year on year. In addition, monthly sales per subscription rose only slightly to ¥164 thousand, up
5.1% year on year due to sluggishness in some sales comprised of fees for the service of providing“Sansan” during the initial adoption period as a result of the effect of COVID-19. Furthermore, as aresult of carrying out ongoing initiatives to expand use among existing customers to achieve astronger customer foundation, the last 12 month average of monthly churn rate (Note 4.) was
0.60%, an improvement of 0.04 points year on year.
As a result, net sales totaled ¥3,356,228 thousand (up 17.8% year on year), of which recurring net
sales (fixed revenue) in “Sansan” totaled ¥3,199,764 thousand (up 26.1% year on year) in the
period under review. Segment profit totaled ¥1,272,216 thousand (up 0.6% year on year).
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. Ratio of decrease in monthly fees associated with subscription cancellations to totalmonthly fees for existing subscriptions for “Sansan.”(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 period under review, the Company worked on strengthening monetization of the B2B service
through “Eight Company Premium” and other methods, while also integrating “Sansan” and the“Virtual Cards” function to develop new functions that make it possible for users to smoothly
exchange “Virtual Cards” with each other online. As a result, the number of “Eight Company
Premium” subscriptions at the end of the quarter under review totaled 1,757, an increase of 77.3%- 3 -Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q1year on year and the number of “Eight” users (Note 5.) totaled 2.76 million, an increase of 0.25
million year on year.
As a result, net sales for the period under review totaled ¥311,024 thousand (up 23.5% year onyear), of which net sales from B2C services totaled ¥74,444 thousand (up 3.2% year on year), andnet sales from B2B services totaled ¥236,580 thousand (up 31.7% year on year). Segment loss wasrecorded at ¥191,715 thousand (compared to ¥239,146 thousand in the previous fiscal year) due tobeing in the phase in which upfront investments were being made to increase future profitability.
Note 5. Number of confirmed users who registered their business card to their profile after
downloading the application(2) Explanation of financial position
AssetsTotal assets at the end of the first quarter of the fiscal year ending May 31, 2021 were ¥22,554,217
thousand, down ¥265,550 thousand from the end of the previous fiscal year. This was primarily due toa decrease of ¥547,344 thousand in cash and deposits, a decrease of ¥132,803 thousand in accounts
receivable - trade, and an increase of ¥200,715 thousand in goodwill recorded as a result of making
logmi a subsidiary through the acquisition of its shares.
Liabilities
Total liabilities at the end of the quarter under review were ¥11,885,607 thousand, down ¥381,539
thousand from the end of the previous fiscal year. This was primarily due to an increase of ¥324,046
thousand in accounts payable - other, an increase of ¥135,903 thousand in short-term borrowings takenout to fund working capital and an increase of ¥441,022 thousand in advances received from receiving
a lump-sum payment of contract term fees from customers, together with a decrease of ¥507,265
thousand in long-term borrowings and a decrease of ¥135,130 thousand in current portion of long-termborrowings as a result of the repayment of borrowings, and a decrease of ¥175,554 thousand in income
taxes payable and a decrease of ¥259,970 thousand in accrued consumption taxes as a result of tax
payments.
Net assets
Net assets at the end of the quarter under review were ¥10,668,610 thousand, up ¥115,989 thousand
from the end of the previous fiscal year. This was primarily due to an increase of ¥85,545 thousand inretained earnings due to recording of profit attributable to owners of parent and an increase of ¥21,879
thousand in share acquisition rights.
(3) Explanation of consolidated earnings forecasts and other forward-looking statements
The forecasts of consolidated financial results for the fiscal year ending May 31, 2021 have notchanged from the forecast announced on July 14, 2020.

- 4 -Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q1

2. Quarterly consolidated financial statements and significant notes thereto(1) Quarterly consolidated balance sheet(Thousands of yen)
As of May 31, 2020
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Software
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Leasehold deposits
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets- 5 -As of August 31, 2020

12,815,225
441,060
410,582
176,945(3,621)
13,840,192

12,267,881
308,256
465,994
163,644(3,777)
13,201,998

414,467

529,659

925,803–
261
926,064

960,037
200,715229
1,160,982

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

6,939,848
545,096
168,075
8,556
7,661,576
9,352,218
22,554,217

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q1(Thousands of yen)
As of May 31, 2020
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Advances received
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
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
Non-controlling interests
Total net assets
Total liabilities and net assets- 6 -As of August 31, 2020

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

61,422
155,903
1,132,360
920,31149,917
169,6135,730,844
157,475
79,9438,457,792

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

3,385,333
42,481
3,427,814
11,885,607

6,236,650
3,977,043
344,184
10,557,879

6,236,650
3,977,043
429,730
10,643,424(15,921)(15,921)
10,663–
10,552,621
22,819,768(11,906)(11,906)
32,542
4,549
10,668,610
22,554,217

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q1(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statement of income(Thousands of yen)Three months ended
August 31, 2019
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest and dividend income
Foreign exchange gains
Cancellation penalty income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share issuance costs
Stock market listing expenses
Commission expenses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent- 7 -Three months ended
August 31, 2020

3,100,589
464,1432,636,446
2,387,520
248,926

3,667,253
437,6093,229,644
3,035,726
193,918

592
568
476
455
2,093

350
185
1,914
1,191
157
3,799

1,161
28,102
13,877
–

7,910
–
–
2,646

13,59284,6501,579
58,313
192,705

1,121
96,328101,388

4,293
37,854
42,147
150,558
44,201–
44,201
106,356
106,356–––
101,388
38,733(22,890)
15,84385,54585,545

Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q1

Quarterly consolidated statement of comprehensive income(Thousands of yen)Three months ended
August 31, 2019
ProfitOther comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent- 8 -Three months ended
August 31, 2020

106,356

85,545(6,274)(6,274)
100,082

4,014
4,014
89,560100,082

89,560Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q1(3) Notes to the quarterly consolidated financial statements(Notes on premise of going concern)
Not applicable.
(Changes in accounting estimates)(Changes in the useful lives of property, plant and equipment)
From the first three months of the fiscal year ending May 31, 2021, the Company has revised its
estimates of the useful lives of some property, plant and equipment from three years to five years. Thischange was made to change the useful lives of facilities attached to buildings and tools, furniture andfixtures primarily related to the head office to better reflect reality in light of actual utilization of theoffice and relevant assets.
As a result of this change, operating profit, ordinary profit and profit before income taxes for the first
three months of the fiscal year ending May 31, 2021 are each ¥20,344 thousand higher than they would
have been under the previous estimates of useful lives.
(Notes on significant changes in the amount of shareholders’ equity)
Not applicable.
(Segment information, etc.)[Segment information]
Ⅰ

First three months of the fiscal year ended May 31, 2020 (from June 1, 2019 to August 31, 2019)
1. Information on the amount of sales and profit (loss) for each reportable segment
Reportable segments
SansanBusiness

Eight Business

Total(Thousands of yen)Amount in thequarterly
Adjustments
consolidated(Note) 1
financialstatement(Note) 2

Net sales
Sales to external customers
Intersegment sales or transfers

2,848,779–

251,810–

3,100,589–––

3,100,589–

Total

2,848,779

251,810

3,100,589–

3,100,589

Segment profit (loss)

1,264,121(239,146)

1,024,975(776,049)

248,926

Notes: 1. The adjustments stated for segment profit (loss) of negative ¥776,049 thousand comprises the amounts ofcorporate expenses not attributable to any reportable segment and mostly consists of general and administrative
expenses.
2. Segment profit (loss) is adjusted with operating profit in the quarterly consolidated statement of income.

2. Information on impairment loss of non-current assets or goodwill, etc. for each reportablesegment(Significant impairment loss on non-current assets)
As corporate expenses not belonging to the Sansan Business, Eight Business and any reportablesegment, the Company reduced the carrying amounts for software to their recoverable amounts
and recorded the amounts of reduction in impairment loss.
The relevant amounts recorded in impairment loss for the three months ended August 31, 2019were ¥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.
- 9 -Sansan, Inc. (TSE 4443)
Financial Results for FY2020 Q1

Ⅱ First three months of the fiscal year ending May 31, 2021 (from June 1, 2020 to August 31, 2020)
1. Information on the amount of sales and profit (loss) for each reportable segment
Reportable segments
SansanBusiness
Net sales
Sales to external customers
Intersegment sales or transfers

3,356,228–

Total
Segment profit (loss)

Eight Business

Total

311,024–

3,667,253–

3,356,228

311,024

1,272,216(191,715)(Thousands of yen)Amount in thequarterly
Adjustments
consolidated(Note) 1
financialstatement(Note) 2––

3,667,253–

3,667,253–

3,667,253

1,080,501(886,582)

193,918

Notes: 1. The adjustments stated for segment profit (loss) of negative ¥886,582 thousand comprises the amounts ofcorporate expenses not attributable to any reportable segment and mostly consists of general and administrative
expenses.
2. Segment profit (loss) is adjusted with operating profit in the quarterly consolidated statement of income.

2. Information on impairment loss of non-current assets or goodwill, etc. for each reportablesegment(Significant change in goodwill amount)
Goodwill was recorded in the “Eight Business” segment due to the inclusion of logmi, Inc. inthe scope of consolidation as a consolidated subsidiary through the purchase of that company’s
shares. In the three months ended August 31, 2020, the resulting increase in goodwill amounted
to ¥200,715 thousand.

- 10 -