Presentation Materials

for FY2021
Sansan, Inc.

July 14, 2022

Disclaimer

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

© Sansan, Inc.

2

Contents

1 Consolidated Financial Results for FY2021
2 Each Service’s Growth Strategy

3 Full-year Forecasts
Appendix(Sansan Group Overview, Sansan/Bill One Business, Eight Business)© Sansan, Inc.

3

Contents

1 Consolidated Financial Results for FY2021
2 Each Service’s Growth Strategy

3 Full-year Forecasts© Sansan, Inc.

4

1 Consolidated Financial Results for FY2021

Highlights of FY2021 Results
Consolidated net sales up 26.2% YoY
Net Sales: Sansan/Bill One Business 24.0% growth, Eight Business 39.9% growth
ARR (1) : 22.9% growth to ¥19,823 million

Bill One ARR exceeded 1.4 billion yen, significantly exceeding target
Bill One MRR (2) up 479.7% YoY, to ¥117 million
ARR (as of May 2022) was ¥1.407 billion, greatly exceeding targeted ARR of ¥1 billion

Reformed major products toward achievement of medium- to long-term growth
Reformed Sansan, from business card contact management service to service for sales DX
Reformed Eight, from business card management app to contact and career management app(1) Annual recurring revenue(2) Monthly recurring revenue© Sansan, Inc.

5

1 Consolidated Financial Results for FY2021

Overview of Consolidated Financial Results
Net sales up 26.2% YoY, operating profit down 14.2% owing to growth investments made.
Ordinary profit and profit attributable to parent owners greatly increased thanks to booking of gain onsale of investment securities, etc.
FY2020

FY2021(For Reference) FY2021

Full-year Results

Full-year Results

Net Sales

16,184

20,420+26.2%

5,715+29.0%

Gross Profit

14,192

17,904+26.2%

4,931+27.4%

87.7%

87.7%

－

86.3%

-1.1 pt.

Operating Profit

736

631

-14.2%

397－

Operating Profit
Margin4.6%

3.1%-1.5 pt.

7.0%－

Ordinary Profit

375

968

+158.3%

217－

Profit Attributable to
Owners of Parent

182

857

+369.7%282－

1.47 yen

6.87 yen+368.8%2.26 yen－(millions of yen)

Consolidated Results

Gross Profit Margin

EPS (1)YoY

Q4 Results

YoY(1) As the Company conducted a four-for-one common stock split effective December 1, 2021, the EPS were calculated on the assumption that the stock split was conducted at the beginning of the fiscal year ended May 31, 2021.
© Sansan, Inc.

6

1 Consolidated Financial Results for FY2021

Factors Contributing to Changes in Consolidated Operating Profit
Personnel expenses up ¥2,013 million (42.4%) YoY owing to proactive personnel recruitment.
Other SG&A expenses up ¥ 1,658 million (28.2%) YoY owing to increases in various related expenses
in accordance with increased personnel.
Status of Consolidated Net Sales/Operating Profit(millions of yen)

Net Sales

16,184

20,420+4,235

Cost of Sales

1,992

2,515

+523

Personnel
Expenses

2,969

2,824

SG&A

7,545

5,886

(excl. personnel expenses
and advertising expenses)

Operating
Profit

6,758

4,745

Advertising
Expenses© Sansan, Inc.

YoY

FY2021 Full-year Results

FY2020 Full-year Results

736

631

+2,013+145+1,658-104

7

1 Consolidated Financial Results for FY2021

Results by Segment
Increased net sales and operating profit (reduced deficit) in both Sansan/Bill One and Eight Businesses.
Adjustments amount (operating loss) up ¥890 million YoY, owing to increased employees, etc.
FY2020(millions of yen)

Full-year Results

Full-year Results(For Reference) FY2021
YoY

Q4 Results

YoY

16,184

20,420+26.2%

5,715+29.0%

14,605

18,105+24.0%

4,906+24.4%

1,582

2,213

+39.9%

783+60.4%

－

126

－

46

－

-3
736

-25
631

－
-14.2%

-19
397

－
－

Sansan/Bill One Business

5,278

5,725

+8.5%

1,695

+39.3%

Eight Business

-754

-386

－

10

－

－

-28

－

-10

－

-3,787-4,678－-1,298－

Consolidated

Net Sales

Sansan/Bill One Business
Eight Business
OthersAdjustments

Operating Profit© Sansan, Inc.

FY2021

Consolidated

OthersAdjustments

8

1 Consolidated Financial Results for FY2021

Sansan / Bill One Business Overview
Against backdrop of Sansan’s steady growth and high growth of Bill One, net sales up 24.0% YoY.
Even while investing in Bill One’s growth, operating profit up 8.5% YoY.
FY2020(millions of yen)

Sansan/Bill One Business(1)

FY2021

Full-year Results

Full-year Results(For Reference) FY2021
YoY

Q4 Results

YoY

Net Sales

14,605

18,105+24.0%

4,906+24.4%

Sansan14,51917,214+18.6%

4,551+16.9%

13,811

16,349+18.4%

4,286+15.6%

707

865+22.3%

264+42.8%

Bill One

84826+878.1%327+552.1%Others1

64+4,414.0%

5,278

5,725

+8.5%

1,695

+39.3%

36.1%

31.6%

-4.5 pt.

34.6%+3.7 pt.

Sansan Recurring Sales
Sansan Other Sales

Operating Profit
Operating Profit Margin

26 +4,236.4%(1) Figures other than net sales and operating profit for the full-year ended May 31, 2021, are exempt from review conducted by an audit corporation.
© Sansan, Inc.

9

1 Consolidated Financial Results for FY2021

Sansan / Bill One Business : Sansan Recurring Sales, Operating Profit Margin
Q4 Sansan recurring sales up 15.6% YoY, Sansan other net sales up 42.8%.
Sansan operating profit margin up 9.1 pt. YoY to 51.0%.
(For Reference) Sansan Operating Profit Margin (1)Sansan Recurring Sales(millions of yen)「Sansan」その他
Sansan Other Sales

Sansan Recurring Sales「Sansan」ストック
Ratio of Sansan Recurring Sales「Sansan」ストック売上高比率

95.3% 95.1% 94.9% 95.2% 95.8% 95.3% 94.7%

91.4% 91.7% 91.3%
89.1%

4,068
3,893
3,733
169
3,535
185
3,353 3,357
191
172
3,140
157
291
2,848 2,941 261
252
310

51.0%

94.2%

4,551
4,227 4,366 264
230
200

4,026 4,136 4,286
3,708 3,899
3,541
3,199 3,362
2,879 3,062
2,538 2,689

41.9%
Q1

Q2

Q3

2020年5月期
FY2019

Q4

Q1

Q2

Q3

2021年5月期
FY2020

Q4

Q1

Q2

Q3

2022年5月期
FY2021Q4

FY2020

FY2021(1) Unaudited© Sansan, Inc.

10

1 Consolidated Financial Results for FY2021

of Sansan Subscriptions and Monthly Sales per Subscriptions,Sansan / Bill One Business : Number
Last 12 Months Average of Monthly Churn Rate for Sansan

Number of subscriptions up 9.6% YoY and monthly recurring sales per subscription up 4.9% YoY.
Last 12 months average of monthly churn rate has remained low, at 1% or less.
Last 12 Months Average of Monthly Churn Rate for Sansan (1)Number of Sansan Subscriptions and Monthly Sales per Subscription（subscriptions）¥9,0008,488「Sansan」契約件数
Number of Sansan Subscriptions
Monthly
Sales per Subscription
契約当たり月次ストック売…

¥8,000¥7,0006,032 6,263

6,587 6,754

6,969

7,230 7,523

7,744

7,992

¥6,000

8,186

8,314

180,000

170,000¥170,000
160,000¥162,000¥5,000150,000¥4,000¥153,000¥3,000140,000

0.63%

0.62%

¥2,000130,000

0.60%¥1,000¥0120,000

End-Q1 End-Q2 End-Q3 End-Q4 End-Q1 End-Q2 End-Q3 End-Q4 End-Q1 End-Q2 End-Q3 End-Q4

FY2019FY2020

FY2021FY2019End-Q4FY2020End-Q3

FY2021End-Q4(1) Ratio of decreased monthly fees associated with contract cancellations to total monthly fees for existing contracts© Sansan, Inc.

11

1 Consolidated Financial Results for FY2021

One MRR, Paid Subscriptions, and Monthly Sales per Paid Subscription,
Sansan / Bill One Business : Bill
Last 12 Months Average of Monthly Churn Rate for Bill One

ARR as of May 31, 2022 was ¥1.4 billion, significantly exceeding target.
Number of paid subscriptions/monthly sales per paid subscription continue to grow at high rate, withlast 12 months average of monthly churn rate at low level of 0.49%.
Number of Bill One Paid Subscriptions and Monthly Sales
per Paid Subscription

Bill One MRR(millions of yen)117

（subscriptions）

853

Paid Subscriptions2Monthly Sales per Paid Subscription

Significantly exceeded target of¥1 billion at the end of May 2022

707

92

End of Q4 FY2021

ARR

575

May 2022¥137,000¥84,000

61¥1.407 billion

343
34

Aug.

5
Nov.

138

9
Feb.

FY2020

26
May

0.49%

239

20
0

Last 12 Months Average of Monthly Churn Rate forBill One (1)

Aug.

Nov.

Feb.

FY2021

May

74

End-Q1 End-Q2 End-Q3 End-Q4 End-Q1 End-Q2 End-Q3 End-Q4

FY2020

FY2021(1) Ratio of decreased monthly fees associated with contract cancellations to total monthly fees for existing contracts© Sansan, Inc.

12

1 Consolidated Financial Results for FY2021

Sansan / Bill One Business : Bill One Market Share and Customers
Achieved #1 share of sales in the cloud invoice receiving service market.
Regardless of company size, acquiring customers from various types of businesses.
Market Share in Cloud Invoice Receiving Services (1)Customers Running Bill One

Share of Sales
in Cloud Invoice
Receiving Service Market

No.1(1) Deloitte Tohmatsu MIC Economic Research Institute, "The Present and Future of the Market of Online Invoice Receiving Solution Service Market, Expected to Grow at a Staggering Rate" (MIC IT Report, July 2022).
© Sansan, Inc.

13

1 Consolidated Financial Results for FY2021

Eight Business Overview
Sales up 39.9% YoY owing to expansion of B2B services.
Recorded operating profit for first time in Q4, decreasing loss by ¥367 million YoY.
FY2020

1,582

2,213

+39.9%

783+60.4%

B2C Services

296

286

-3.6%

72

-3.4%

B2B Services

1,286

1,927

+49.9%

710+72.0%

Operating Profit

-754

-386

－

10

－

Operating Profit Margin

－

－

－

1.3%

－

Number of Eight Users (2)

2.92

3.10

+0.18

million people

million people

million people

2,253

2,819

+25.1%

Eight Business

Number of Eight Team
Subscriptions(1) Figures other than net sales and operating profit for the full year ended May 31, 2021, are exempt from review conducted by an audit corporation.
(2) Number of confirmed users who registered their business card to their profile after downloading the app.

YoY

YoY

Full-year Results

Net Sales© Sansan, Inc.

Q4 Results

Full-year Results(millions of yen)

(1)

(For Reference) FY2021

FY202114

1 Consolidated Financial Results for FY2021

Eight Business: Net Sales, Eight Users
Q4 B2B service sales up 72.0% YoY owing to holding of large-scale business events, etc.
Continued growth of number of Eight users.

Number of Eight Users (1)Net Sales(millions of yen)

¥350

B2C
services
BtoCサービス
BtoBサービス
B2B
services783(millions of user)
¥300

2.51

2.58

2.65

2.70

2.76

2.81

2.86

2.92

2.96

3.01

3.05

3.10

¥250

552
488
424

179
72

181

263
161
74

71

350
234

¥200

710

360

337 309251 253 235

454

424

¥150

480

413

383

352

287

¥100

¥50

73

74

73

73

74

71

71

71

72
¥0

Q1

Q2

Q3

FY2019

Q4

Q1

Q2

Q3

FY2020

Q4

Q1

Q2

Q3

FY2021

Q4

End-Q1 End-Q2 End-Q3 End-Q4 End-Q1 End-Q2 End-Q3 End-Q4 End-Q1 End-Q2 End-Q3 End-Q4

FY2019FY2020

FY2021(1) Number of confirmed users who registered their business card to their profile after downloading the app.
© Sansan, Inc.

15

Contents

1 Consolidated Financial Results for FY2021

2 Each Service’s Growth Strategy
3 Full-year Forecasts© Sansan, Inc.

16

2 Each Service’s Growth Strategy

Developing a Business Database that Reshapes How People Work
Offering a business database that reshapes how people work and that connects encounters withpeople and companies with business opportunities.
Developing services in business flows in various fields.
Sansan Meishi Maker

Careerdatabase

Business IDs
database

Contact database
Corporate database

Recruitment

Businesscardcreation

Sales

Contract database

Negotiation

Contract

Invoice database

DeliveryRequestWork styles that will change with use of business databases© Sansan, Inc.

Users can
immediately findInformation is easy to
manage and can beinformation they needshared immediately

Easy to analyze and utilize
information and makedecisions based on data17

2 Each Service’s Growth Strategy

Sansan / Bill One Business

Sansan / Bill One Business

Service for sales DX© Sansan, Inc.

Online invoicereceiving solution

Cloud-based contract
management solution

Eight BusinessBusiness card
creation service

Contact and career
management app

18

2 Each Service’s Growth Strategy

Sansan: Product Reform to Database to Power Your Sales
Reformed product from business card contact management service to service for sales DX.
Building databases unique to user companies by combining company information and contact databases.
Database to power sales andunique to each user company

Corporate database

Contact database

Data item• Trade name• Industry• Location• Employees• Teikoku• Sales
Databank code
• Capital• Establishment
date• Representative
officer information• Executive
information

Business
cards

Email

Websiteinquiries

Virtual cards

Phone calls

Seminarsand more

Note: Some information is linked only to business cards in user’s possession.

System integration（Salesforce ( 1 ) ／Marketo／SATORI and more ）Microsoft ( 2 ) Teams, Outlook,
Concur Expense(1) Salesforce is a registered trademark of salesforce.com, Inc.
(2) Microsoft Teams, Teams, and Microsoft Outlook are registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries.
© Sansan, Inc.

19

2 Each Service’s Growth Strategy

Sansan: Even More Function Enhancements
From June 2022, use of main post-product reform functions will commence.
From August 2022, planning even more function enhancements, such as email contact information invisual form and Risk Intelligence.

FY2021

FY2022

Q3

Q4

Q1

Q2

Main functions of product reform• Added Contact Inbox• Browsing of company• Strengthen integration• Risk Intelligence forfunction (December)

information (March)with Teikoku Databank(June)

companies/people(August)• Add website inquiry form
integration (May)(additions as necessary)• Email contacts display
and search functions(August)• Sales begin (March)© Sansan, Inc.

20

2 Each Service’s Growth Strategy

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

Sansan Coverage

Sansan Coverage(Number of employees)(Company) (1)(Employee) (1)1,000+

16.1%

100 to 999

100 or fewer(+0.5 pt. YoY)

3.9%

4.1%

(+0.9 pt. YoY)

3.0%(+0.5 pt. YoY)(+0.6 pt. YoY)

0.3%

1.1%

(+0.0 pt. YoY)

Potential formany dozens of times
coverage expansion(+0.2 pt. YoY)

(1) Sansan coverage is calculated with the number of subscription and total number of IDs in Sansan for FY2021 Q4 end as the numerator and the number based on Economic Census for Business Activity in 2016 issued by the Statistics Bureau as the denominator.
(Because of a review of the definition of calculation, the value at the end of Q4 FY5/2021 was revised.)© Sansan, Inc.

21

2 Each Service’s Growth Strategy

Sansan / Bill One Business

Sansan / Bill One Business

Service for sales DX© Sansan, Inc.

Online invoicereceiving solution

Cloud-based contract
management solution

Eight BusinessBusiness card
creation service

Contact and career
management app

22

2 Each Service’s Growth Strategy

Bill One: External Environment in Invoicing Arena
Planning to commence invoice system applications from October 2023.
Review not only of invoice receipt but also of issuance operations in demand.
2022• System for correctly calculating theamount of tax credits for purchases
subject to consumption tax

Invoicing
System• Issuing company applies for registration

2023

2024

October 2021 to end of March 2023
Contractor’s registration application acceptance period
commences at time of issue of eligible invoice

and issues eligible invoices

October• Measures required to be taken by

Invoicing systemapplications commence

receiving company, such as confirming
registration numbers and necessary
items with National Tax Agency• Laws related to preservation ofelectronic books

Revision of Act
Concerning
Preservation ofElectronic
Books• Paper receipt national tax documents
can be stored electronically with no need
to apply to tax offices

January

Enforcement of Act Concerning Preservation of Electronic Books (Revised)• Electronic preservation of electronic
receipt national tax documents mademandatory (accepts that electronicstorage is not possible only under certain

Allows 2 years for not being able to store electronically
only under certain conditions

storage conditions)© Sansan, Inc.

23

2 Each Service’s Growth Strategy

Bill One: Offering Invoice Issuing Function
Invoice issuing to be offered as a standalone service from July 2022.
Planning response to eligible invoice issuance, supporting corporate invoicing systems from both
receipt and issuing side.

© Sansan, Inc.

BeforeFrom July 2022

Receive Invoices Only

Receive and Issue Invoices24

2 Each Service’s Growth Strategy

Bill One: Invoice Network Building
Aiming to expand invoice network by adding invoice issuing function.
Network enables rapid, smooth inter-company communications, accelerates monthly accounts settlement.

© Sansan, Inc.

25

2 Each Service’s Growth Strategy

Bill One: Size of Potential Market and Bill One ARR
Since all companies are targeted regardless of their industry or size, vast room for development exists in Japan.
Aiming to more than double ARR YoY by end of FY2022.
Size of Potential Market (1)Bill One ARR(millions of yen)Companies in Japan (1)~ARR

2 million

Aim to more thandoubleYoY

1,407
Companies in Bill One network~Approx. 41,000

242Bill One paid subscriptions

853

2021
End of FY2020

2022
End of FY2021

2023
End of FY2022(1) Based on Economic Census for Business Activity in 2016 issued by the Statistics Bureau.
© Sansan, Inc.

26

2 Each Service’s Growth Strategy

Sansan / Bill One Business

Sansan / Bill One Business

Service for sales DX© Sansan, Inc.

Online invoicereceiving solution

Cloud-based contract
management solution

Eight BusinessBusiness card
creation service

Contact and career
management app

27

2 Each Service’s Growth Strategy

Contract One and Sansan Meishi Maker: Service Outlines
Contract One: cloud-based contract management solution that completes contract operations online
and realizes centralized management.
Sansan Meishi Maker: business card creation service that streamlines management departments’creating business cards.

Sansan Meishi Maker

Accurate digitization of contracts enables centralized data management ofboth paper and electronic contract information, and contract-related tasks
such as sealing, storage, and management can be done online. Provides
functions to visualize contract operations, improve operational efficiency,
and encourage risk management.

The service enables one-stop business card creation and orderingon Sansan, Google Workspace (1), Microsoft Outlook (2), and Microsoft
Teams (2), as well as centralized management of business card
creation, ordering, and management operations in the cloud.

(1) Google Workspace is a trademark of Google LLC.
(2) Microsoft Teams, Teams, and Microsoft Outlook are registered trademarks or trademarks of Microsoft Corporation in the United States and other countries.
© Sansan, Inc.

28

2 Each Service’s Growth Strategy

Eight Business

Sansan / Bill One Business

Service for sales DX© Sansan, Inc.

Online invoicereceiving solution

Cloud-based contract
management solution

Eight BusinessBusiness card
creation service

Contact and career
management app

29

2 Each Service’s Growth Strategy

Eight: Product Reform
Reformed from a business card management app to a contact and career management app that
supports personal career development.
Aiming to return to profitability for FY2022 by strengthening recruitment-related services.
Eight Business Operating Profit/Loss

Eight: Contact and Career Management App(millions of yen)

10

-169

-193
1 Skill Report

2 Company Report

3 Recruitment Information© Sansan, Inc.

Q1

-105

Q2

Q3

-182

-185
-205

4 Online Events

Through the new Career tab, Eight offers information
relevant to career development, such as reports andcompany information useful for skill improvement, andrecruitment information tailored to user attributes.

-108

Q2

Q3

FY2020Q4Q1Q4FY2021

30

Contents

1 Consolidated Financial Results for FY2021

2 Each Service’s Growth Strategy

3 Full-year Forecasts© Sansan, Inc.

31

3 Full-year Forecasts

Consolidated Financial Forecasts
Aim for solid growth in consolidated net sales and growth in adjusted consolidated operating profit
that exceeds sales growth in FY2022
FY2022 (1)FY2021(millions of yen)

Full-year Results

Full-year Forecasts

YoY

20,42025,117~25,764+23.0%~+26.2%

Sansan/Bill One Business

18,10521,998~22,632+21.5%~+25.0%Eight Business

2,213

2,900
~3,010+31.0%~+36.0%730

917~1,288+25.5%~+76.3%

3.6%

3.7%
~5.0%

+0.1pt~+1.4pt

Sales
Consolidated Forecasts

Adjusted Operating Profit (2)Adjusted Operating Profit Margin(1) We do not disclose specific forecast figures for operating profit (loss) and below as it is difficult to make a reasonable estimate of expenses related to stock-based compensation, which may vary significantly depending on the level of our stock price, and certain nonoperating profit (loss) and other items.
(2) Operating Profit + Share-Based Payment Expenses + Expenses Arising from Business Combinations (amortization of Goodwill and amortization of Intangible Assets)© Sansan, Inc.

32

3 Full-year Forecasts

Medium-Term Financial Targets (FY2022–FY2024)
Aiming for solid growth in net sales and stable profit growth

Important management indicators
Consolidated net sales

Continue solid growth in the 20%+ range or higher

Adjusted
consolidated
operating profit

Improvement of profit margin in each fiscal year
Sansan/Bill One Business

Eight Business

Recording adjusted operating profit of ¥10 billion
or more for Sansan and Bill One

Recording stable adjusted operating
profit for full year

(Excluding Other, such as new services in
Sansan/Bill One Business segment)© Sansan, Inc.

33

Appendix© Sansan, Inc.

Sansan Group Overview© Sansan, Inc.

Sansan Group Overview

Mission and Vision

MissionTurning encounters
into innovation

VisionBecome business
infrastructure© Sansan, Inc.

36

Sansan Group Overview

Overview of Reporting Segments
Comprises two reporting segments, the Sansan/Bill One Business and Eight Business. (1)Sansan/Bill One Business

Eight Business

SansanBill One

OthersB2C Services

B2B Services

Service for sales DX

Online invoice receiving solution

Cloud-based contract
management solution

Contact and career management app

Contact and career management app- Eight Premium

Business card creation service- Eight Team- Eight Marketing Solutions- Meets- Climbers- DX Camp- Business IT & SaaS EXPO
- Eight Career Design
Media that transcribes all documents (2)(1) From FY2021 (June 1, 2021), following a change in the recognition method for certain services, the reportable segments were changed to Sansan/Bill One Business and Eight Business. Of note, the few other services not included in reportable segments are recorded
in “Others,” while elimination of intra-company transactions (sales), and costs not allocated to segments are recorded in “Adjustments.”(2) Services provided by logmi, Inc., a consolidated subsidiary© Sansan, Inc.

37

Sansan Group Overview

Operation and Technologies for Digitizing Analog Information
Establishment of analog information digitization operation structure unsurpassed by competitors.

Prompt, accurate digitization of large volume of business card information

Scan large volumes ofanalog information

AI:
Data entry

Humans:Manual entry

Humans: Final check

Database

Automatic and manual data entry of
analog information images
Cycle repeated since company began

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

Automatic detection of
language

Automatic sorting tooperators

Diverse network ofdata entry operators

Image processing
technology

38

Sansan Group Overview

Tailwind of Market Environment
Work-style reform and digital transformation are boosting the need for B2B cloud-based business cardmanagement.
Work-style Reform and ICT-related Spending in Japan (1)(billions of yen)

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

SaaS Market Size in Japan (3)(billions of yen)Communication Services
IT and Business Services
Software＋¥516.2

449.0

Hardwarebillion＋¥423.6
387.0
276.9

750.4

＋
38,136億円＋¥
3,813.6
billionbillion51,957

1,117.8

965.6

542.0
601.6
1,071.0

1,115.5

13,821

2017
'05/5

2022
'05/5

'05/5
2019

forecast

'05/5
2030

forecast

2019
'05/5

2024
'05/5

forecast(1) Based on 2018 to 2022 Outlook of Work-style Reform and ICT-related Spending in Japan: by Hardware, Software, IT and Business Services, Communication Services by IDC Japan (December 2018)(2) Based on Market Edition and Vendor Strategy Edition of 2022 Outlook of the Digital Transformation Market by Fuji Chimera Research Institute(3) Based on 2020 New Software Business Markets by Fuji Chimera Research Institute© Sansan, Inc.

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Sansan Group Overview

Company Overview (1)Company name

Sansan, Inc.

Foundation

June 11, 2007

Head office

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

Other locations

Branch offices: Kansai, Fukuoka, Chubu
Satellite offices: Tokushima, Kyoto, Fukuoka, Hokkaido, Niigata

Groupcompanies

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

Representative

Chika Terada

Number of
employees

1,202

Capital¥6,426 million

Net sales¥20,420 million

Classification bytype ofshareholder

Domestic financial institutions: 20.19%; security firms: 1.32%;
other domestic corporations: 2.17%; foreign financial institutions and individuals: 28.47%;
individuals and others: 47.85%

Head OfficeKamiyama Lab

Sansan Innovation Lab(1) As of May 31, 2022 (consolidated results)© Sansan, Inc.

40

Sansan Group Overview

About Employees
Breakdown by Organization (1)Number of Employees(persons)

1,202
Sansan/Bill One Business
Sales/SD/CS
954

Others713
Eight Business549

employees

402

Sansan/Bill One Business
Others
FY2017

1,202

FY2018FY2019FY2020

FY2021

Sansan/Bill One Business
Development(1) As of May 31, 2022
© Sansan, Inc.

41

Sansan Group Overview

Ratio of Net Sales to Each Expenses
Ratio of Each Expenses to Consolidated Net Sales (1) (Cost of sales/R＆D (2) /S＆M (3) /G＆A (4))
売上原価
Cost of sales

R&D

S&M

G&A

120.0%

100.0%

80.0%

15.7%
13.6%

12.3%

12.3%

17.8%

16.7%

19.5%

39.4%

44.5%

43.5%

25.3%

24.0%

22.0%

20.9%

FY20182019年5月期

FY20192020年5月期

FY20202021年5月期

FY20212022年5月期

19.5%

60.0%

48.6%
40.0%

20.0%

0.0%
(1) Unaudited(2) Research and Development (total personnel costs, server costs, common costs, etc. related to research and development)(3) Sales and Marketing (total advertising costs and personnel costs, common costs related to advertising and sales promotion)(4) General and Administrative (total personnel costs and common costs related to corporate departments)© Sansan, Inc.

42

Sansan/Bill One Business© Sansan, Inc.

Sansan/Bill One Business

Sansan: Sansan Market Share and Customers
Has gained high level of brand recognition among B2B services and established a dominant market
share. Building a solid customer base backed by Japan’s highest SaaS management expertise, which
has been cultivated since we began.
Dominant brand recognition and market share in B2B

Strong sales organization and solid customer base

Sales share in 2020 (1)SaaS expertise cultivatedover the 15 years since our founding

Sansan83.1 %(1) Latest trends in business card management services and sales services [SFA/CRM/online business card exchange], December 2020, Seed Planning, Inc.
© Sansan, Inc.

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Sansan/Bill One Business

Sansan: Service Plans
Providing basic company-wide use plan.
A. Basic company-wide use plan1

2

Initial cost

12 months’ license cost

(initial costs)

Cost for digitizing existing business cards

Customer
Success Plan
(initial costs)

B. Previous plan (ID subscription)
Cost according to number ofcontract IDs
Digitization costs for business cards already held
(upper limit placed on number of business cards)

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

3

ScannerMonthly ¥10,000 per scanner(running costs)

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

4© Sansan, Inc.

License cost

Determined according to company
size and usage (annual subscription)

Setting according to number ofcontract IDs (annual subscription)(running costs)

Tens of thousands to millions of yen per subscription

Fixed billing for each ID (upper limit placed on thenumber of business cards digitized)

Timing of payment

At start ofcontract

At start ofcontract

At start or
renewal ofcontract
At start or
renewal ofcontract

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Sansan/Bill One Business

Sansan: Number of Subscriptions and Monthly Recurring Sales per Subscription
Achieve growth through increases in both the number of subscriptions and monthly recurring sales
per subscription.

Increase Monthly Recurring Sales per Subscription
Increase Numberof Subscriptions• Expand sales coverage to large corporations• Promote solution-based sales• Promote regional expansion

Number of Sansan Subscriptions• Promote company-wide use (from the sales
department to the entire company)• Enhance implementation support• Promote of Virtual Cards• Strengthen collaboration with othercompanies’ partners

Upselling• Promote of higher edition• Partnerships with other companies, and M&A

Monthly Recurring Sales per Subscription

5,147

8,488

¥116,000¥170,000

FY2017 End-Q4

FY2021 End-Q4

FY2017 End-Q4

FY2021 End-Q4

Approx.

© Sansan, Inc.

More Utilization by Existing
Customers

1.6 times

Approx.

1.5 times
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Sansan/Bill One Business

Sansan: Expand Use of Virtual Cards Function
Started providing Virtual Card function in June 2020 amid expansion of new work styles, such as
remote work. Stronger syncing between our other segment and other companies, such as Eight with
Microsoft Teams (1) and Google Calendar (2).

Maximize Sales with
Virtual Cards(1) Microsoft 365 is registered trademarks of Microsoft Corporation in the U.S. and other countries(2) Google Workspace and Google Calendar are trademarks of Google LLC.
© Sansan, Inc.

47

Sansan/Bill One Business

Sansan: Accumulation of Net Sales by Service-in Timing (Recurring Sales)
Stably achieving negative churn rate. (1)Sansan Sales Stack-up: Accumulation of Net Sales by Service-in Timing (2) (Recurring Sales)

FY2017End-Q4FY2018End-Q4FY2019End-Q4FY2020End-Q4FY2021End-Q4(1) Status where increase of revenue generated by the existing subscriptions is greater than revenue reduced resulting from cancellation(2) Created based on monthly Sansan license charge (unaudited)© Sansan, Inc.

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Eight Business© Sansan, Inc.

Eight Business

Eight: Service Outline
App used by more than 3 million businesspeople as a service to resolve problems that individuals facein business, including career building
Challenges facing
businesspeople

Not making the most out ofbusiness encounters

Lack sufficient access tobusiness card information

Autonomous careerbuilding not possible

Digitize business cards with high level of accuracy by using technologies developed through Sansan

Offering a lifetime app for business
Automatically creates
profilesMonetize
opportunities© Sansan, Inc.

Management and search ofcontact information

Latest information
reaches users

B2C model

Paid plan for
individuals

Users see career
information

Reaches scouts fromcompanies

B2B model

Paid plan forcorporations

Ad delivery

Business events

Recruiting platform

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Eight Business

Eight: Strengthening and Promotion of Monetization Plans
Accelerate and strengthen the development of paid plans for B2B.
B2B (1)
Recruiting platform

Eight Career Design
Advertising

Eight Marketing Solutions

Fixed monthly fee (2)(fixed contract)Pay-for-use charges depending
on delivery volume (3)(fixed contract)

Professional recruitment services targeting Eight users
Provides new and unique targeted hiring method to the market

A service for delivering ads to Eight users
Timely and targeted advertising to career-oriented professionals

Business events

Meets, Climbers, DX Camp,
Business IT & SaaS Expo

Fixed fee per event(held irregularly) (4)Various business event services utilizing Eight's business network
Uses proprietary technology to accurately match businesspeople

Paid plan for corporations

Eight Team

Fixed monthly fee

Users can share contact with colleagues(annual subscription)

Targeting small companies with <20 employees

B2C
Paid plan for individuals

Eight Premium

Fixed monthly fee

Delivers additional functions to users, such as network data download
Expand the overall number of Eight users, including free plan

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

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