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.

January 14, 2020

Financial Results for FY2019 Q2Company 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 to file quarterly securities report:
January 14, 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 six months of the fiscal year ending May 31, 2020
(from June 1, 2019 to November 30, 2019)(1) Consolidated operating results (cumulative)
Net sales
Six months ended
November 30, 2019
November 30, 2018

Six months ended
November 30, 2019
November 30, 2018

Operating profit

Millions of yen% Millions of yen

6,294
–

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

–
–

109
–

Profit attributable toowners of parent

Ordinary profit% Millions of yen

–
–

17
–

% Millions of yen

–
–

(91)
–

%

–
–

Six months ended November 30, 2019: ¥(88) million [–%]
Six months ended November 30, 2018: ¥ – million [–%]

Basic earnings per
share

Diluted earnings
per share

Yen

Yen

(2.97)–––

Notes: 1. As the Company has not prepared consolidated financial statements for the six months ended November 30,
2018, the financial figures and the percentage indicating year-on-year changes are not shown for the six months
ended November 30, 2018 and the percentage indicating year-on-year changes is not shown for the six months
ended November 30, 2019.
2. Diluted earnings per share is not stated because, although potential shares exist, basic loss per share was recorded.

(2) Consolidated financial position
Total assets
As ofNovember 30, 2019
May 31, 2019
Reference:

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

21,208
9,079

10,127
3,372

47.7
37.0

EquityAs of November 30, 2019:
As of May 31, 2019:¥10,116 million¥3,362 million

2. Cash dividends
Annual dividends
First quarter-end

Second quarter-end Third quarter-end

Yen

Fiscal year ended
May 31, 2019
Fiscal year ending
May 31, 2020

Yen

–

0.00

–

0.00

Fiscal year-end

Yen–

Fiscal year ending
May 31, 2020–
(Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: None

Total

Yen

Yen

0.00

0.00

–

–

3. Consolidated earnings forecasts for the fiscal year ending May 31, 2020 (from June 1, 2019 to
May 31, 2020)
Net sales

Fiscal year ending
May 31, 2020

(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings perowners of parent
share

Operating profit

Millions ofyen%Millions ofyen

13,816

35.4

724

%

–

Millions of
yen

670

%

–

Millions of
yen

–

%

–

Yen

–

Notes: 1. Revisions to the earnings forecasts most recently announced: None
2. Although the Company is expecting to return to the black and post a profit attributable to owners of parent, it isdifficult 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: None
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 November 30, 2019

31,058,853 shares

As of May 31, 201929,432,353 sharesb. Number of treasury shares at the end of the period
As of November 30, 2019–

As of May 31, 2019–c. Average number of outstanding shares during the period
For the six months ended November 30, 201930,726,509 shares

For the six months ended November 30, 2018–

Note: As the Company has not prepared consolidated financial statements for the six months ended November 30,
2018, the average number of outstanding shares during the period for the six months ended November 30,
2018 is not shown.

* 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 FY2019 Q2

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 ........................ 5
2. Quarterly consolidated financial statements and significant notes thereto ............................................... 6(1) Quarterly consolidated balance sheet .................................................................................................... 6(2) Quarterly consolidated statements of income and comprehensive income ........................................... 8
Quarterly consolidated statement of income ......................................................................................... 8
Quarterly consolidated statement of comprehensive income ................................................................ 9(3) Quarterly consolidated statement of cash flows .................................................................................. 10(4) Notes to the quarterly consolidated financial statements ..................................................................... 11(Notes on premise of going concern)................................................................................................... 11(Notes on significant changes in the amount of shareholders’ equity) ................................................ 11(Segment information, etc.) ................................................................................................................. 11- 1 -Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q2

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, such as business card management, byusing new approaches that combine “technology and data-input-based business card digitization
systems” with “cloud software.” Specifically, the Group operates the Sansan Business, which provides“Sansan,” a B2B cloud-based business card management service that enables users to digitize businesscards in order to visualize and share the networks between individuals, and the Eight Business, which
operates “Eight”: Your Business Card Management App that incorporates a system of social
networking services and changes business cards into a business network. In addition, the DSOC (Data
Strategy & Operation Center), which serves as Data Integration Division, takes on the job of digitizing
business cards as both business’s shared infrastructure. The DSOC continues to pursue new technology
development and improvement in data-input operations.
The Sansan and Eight Businesses that the Group provides are services used by many companies andbusiness people and are based on a basic business need of business card management, and the data andinformation collected form the backbone of those services. Therefore, we believe that there is highpotential for syncing with other services and databases and that all the requirements are there for abusiness platform. Accordingly, by increasing the value of these two businesses as a business platform,
we believe they have the special characteristic of providing easy access to various business
opportunities.
In the first six months of the fiscal year ending May 31, 2020, the Company engaged in initiatives suchas strengthening the sales structure, including human resources, in order to realize continuous growthof net sales.
As a result, the Sansan Business and the Eight Business have performed steadily, and net sales totaled¥6,294,801 thousand, gross profit totaled ¥5,382,518 thousand, and gross profit margin was 85.5% in
the period under review. In addition, for multi-step profit or loss under operating profit or loss,
operating profit was ¥109,840 thousand, ordinary profit was ¥17,203 thousand, and loss attributable toowners of parent was ¥91,110 thousand.
As a result of the Company issuing a public offering of shares by original placement and a secondaryoffering of shares by an overallotment to a third party through newly listing on the Tokyo Stock
Exchange Mothers on June 19, 2019, the Company has increased its capital through an allotment of
new shares. The Company plans to use the ¥6,843,498 thousand in proceeds as working capital bymaking marketing investments such as advertising expenses and sales promotion expenses, personnel
expenses, and recruiting expenses.
Additionally, on November 1, 2019, the Company entered into a capital and business allianceagreement with WingArc1st Inc. (hereinafter, “WingArc1st”), with the aim of increasing the scalability
and value of “Sansan” as a business platform, and acquired 11.44% of the total number of issued sharesof WingArc1st for ¥4,998 million. All funds to acquire these shares were appropriated from ¥5,000
million of borrowings from financial institutions. Under this agreement, WingArc1st’s “MotionBoard”(Note 1.) is being developed as an application that can be used with “Sansan,” and the Company isplanning to expand its analysis function for business card data and customer information, and cross-sell
it through business activities.
Note 1.

An information utilization dashboard service whose concept is to bring innovation tocompanies by integrating and visualizing various information and data that exists within andoutside the company, and changing it into valuable information. Its characteristics include
rich expression and real time processing, as well as superior usability and maintainability.

Results by segment are as follows.

- 2 -Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q2(i) Sansan BusinessIn the Sansan Business, the Company develops “Sansan,” the B2B cloud-based business cardmanagement service, based on the concept of “Effortless organization. Seamlessly simple.” By
using “Sansan” to solve various issues faced by companies, such as “information on the exchangeof business cards is not shared within the company” and “we don’t think about the value held bybusiness card information,” and change the business cards with dormant potential in the company
into an asset that can be used through business activities, we believe we are able to maximize thevalue of business “encounters.” Simply by having the user companies scan their business cards, it
becomes possible to accurately digitize the business card information using data input operators,
etc. of the Group and of external information processing partners and use “AI Contact
Management” through the cloud-based applications. With these features, not only can individual
employees manage their business cards, it also becomes possible to share Contact Data throughout
the organization. Furthermore, Sansan provides a broad range of customer management tools, suchas the distribution of news on personnel changes to inform people of the latest personnel
information and the ability to send batch emails.
Furthermore, in addition to these basic functions, we also provide “Collaboration with Colleagues”
with a feature that provides access to in-house address books, thereby facilitating the smoothsharing of information among co-workers, and a feature that enables visualization of in-housestrengths and knowledge, and “Sansan Data Hub,” which enables syncing with in-house databases
and advanced aggregation of complex customer data. Through the ability to quickly access thecloud-based Contact Data from PCs or smartphones and the ability to utilize the functions to searchsuch data and use call/messaging functions, etc., business people are able to realize improvements
in productivity, general office operations, and cost cutting benefits. Moreover, we believe that theability to share Contact Data inside the organization, aggregate the customer data existing inside
the company and other such benefits will give shape to advanced marketing activities, customer
management, and the like that will lead to the creation of business opportunities for the user
company.
As a business model, the Company is pursuing a monthly fee for licenses on the premise of all staff
members in the user company using the service (company-wide use). The monthly usage fee iscalculated by the usage fees of the optional functions, scanner rental fees, etc. being added to thelicense cost, which is calculated based on the number of business cards that are digitized in the user
company. In addition, at the time the service is being introduced, additional paid services areprovided relating to the digitization of the existing large volumes of paper-format business cards
retained by the user company, activities to support introduction, etc.
For the period under review, the Company continued to engage in initiatives such as strengthening
the sales structure, including hiring of salespeople, in order to further increase the number ofsubscriptions and increase monthly sales per subscription for “Sansan,” a B2B cloud-based
business card management service. As a result, in addition to progress in the use of our services byfinancial institutions and government agencies, the Company has also steadily acquired newcustomers among medium to small enterprises. At the end of the period under review, the numberof “Sansan” subscriptions totaled 6,263, up 11.5% year on year. Furthermore, as a result of carryingout ongoing initiatives to expand use among existing customers to achieve a stronger customer
foundation, the last 12 months average of monthly churn rate (Note 2.) was 0.54%, an
improvement of 0.25 points year on year.
In addition, the Company has decided to jointly develop antisocial forces check optional function
which can scan a business card and check if that company works with antisocial forces, with
Refinitiv Japan K.K., which possesses data and information about antisocial forces, with the aim ofpromoting the platform development of “Sansan.”As a result, net sales totaled ¥5,789,973 thousand and segment profit totaled ¥2,112,931 thousandin the period under review.
Note 2. Ratio of decrease in monthly fees associated with subscription cancellations to totalmonthly fees for existing subscriptions for “Sansan.”- 3 -Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q2(ii) Eight BusinessIn the Eight Business, the Company operates the business card application “Eight” as the new
business network service that goes beyond pure business card management to incorporate a systemof social networking services based on the concept of “Business-Focused SNS Connected with
Business Cards.”
We believe that through using “Eight,” it will be possible to resolve issues that business people
struggle with such as “I’m not making use of my business encounters” and “I cannot easily accessmy business card information.”“Eight,” like “Sansan,” is a service whereby the business card information of the user and theircontacts are accurately digitized simply through scanning the business cards. First, by registering
their own business card, the user creates their own page, which they can use throughout theirbusiness life, and on that page, they are able to manage their profile. Next, by registering thebusiness cards of their contacts, the user is able to make use of the business card management
functions, and all the Contact Data that has been converted to cloud-based data can be accessed at
any time from either a smartphone or a PC. Furthermore, when the information of a contact who isconnected through the networking service changes, the most recent information will be
automatically updated in the registered Contact Data, and the user will be notified of this change.
Users are also able to use a messaging function for business chats, and they are able to moresmoothly utilize their own personal business networks. Users can also use the service for collecting
corporate information that interests them and performing job searching activities.
As a business model, 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, 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 through “Eight
Company Premium,” the B2B service, and other methods in “Eight,” the B2C Business Card
Management App. As a result, the number of “Eight Company Premium” subscriptions underreview totaled 1,164, an increase of 149.8% year on year and the number of “Eight” users (Note 3.)
totaled 2.58 million, an increase of 0.29 million year on year at the end of the period under review.
As a result, net sales for the period under review totaled ¥504,828 thousand, of which net sales
from B2C services totaled ¥143,207 thousand and net sales from B2B services totaled ¥361,621
thousand. Segment loss was recorded at ¥466,528 thousand due to being in the phase in which
upfront investments were being made to increase future profitability.
Note 3. Number of confirmed users that downloaded the application and registered their own
business cards.
(2) Explanation of financial position(i) Status of assets, liabilities and equity
AssetsTotal assets at the end of the second quarter of the fiscal year ending May 31, 2020 were ¥21,208,951
thousand, up ¥12,129,835 thousand from the end of the previous fiscal year. This was primarily due toan increase of ¥6,780,657 thousand in cash and deposits from issuing new shares, etc. and an increaseof ¥5,019,029 thousand in investment securities as a result of investment into WingArc1st.
Liabilities
Total liabilities at the end of the quarter under review were ¥11,081,314 thousand, up ¥5,375,163
thousand from the end of the previous fiscal year. This was primarily due to an increase of ¥3,889,292
thousand in long-term borrowings as a result of borrowing money to procure investment capital for- 4 -Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q2

WingArc1st, an increase of ¥1,045,540 thousand in current portion of long-term borrowings and anincrease of ¥114,544 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 quarter under review were ¥10,127,637 thousand, up ¥6,754,671 thousand
from the end of the previous fiscal year. This was primarily due to increases of ¥3,421,749 thousand ineach of share capital and capital surplus from issuing new shares in association with the listing of theCompany’s common shares on the Tokyo Stock Exchange Mothers, and a decrease of ¥91,110
thousand in retained earnings due to recording of loss attributable to owners of parent. In addition, theCompany reduced capital surplus by ¥947,106 thousand and transferred them to retained earnings inorder to achieve future flexible and dynamic capital policy by eliminating cumulative loss early basedon the resolution at the meeting of the Board of Directors that took place on July 30, 2019.
(ii) Status of cash flows
Cash and cash equivalents (hereinafter “capital”) at the end of the quarter under review totaled¥12,247,252 thousand, an increase of ¥6,778,757 thousand compared to the end of the previous
fiscal year. This increase includes the effect of ¥235 thousand due to exchange fluctuations on
capital.
Cash flows from operating activities
The amount of capital provided by operating activities totaled ¥728,706 thousand. The main reasons forthis increase were recognition of depreciation, non-cash expense, of ¥291,422 thousand, an increase of¥214,381 thousand in accounts payable - other and an increase of ¥114,534 thousand in advances
received, and the main factor for the decrease was an increase of ¥125,713 thousand in prepaid
expenses.
Cash flows from investing activities
The amount of capital used in investing activities totaled ¥5,664,749 thousand. This was primarily due
to ¥5,045,734 thousand generated from the purchase of investment securities as a result of theacquisition of shares, etc. of WingArc1st.
Cash flows from financing activities
The amount of capital provided by financing activities totaled ¥11,714,565 thousand. This wasprimarily due to ¥6,815,396 thousand in proceeds from the issuance of shares in association with thelisting of the Company’s common shares on the Tokyo Stock Exchange Mothers, and ¥4,980,545
thousand in proceeds from long-term borrowings as capital to acquire shares of WingArc1st.

(3) Explanation of consolidated earnings forecasts and other forward-looking statements
The forecasts of consolidated financial results for the fiscal year ending May 31, 2020 have notchanged from the forecast announced on July 12, 2019. Note that because the Company actively carriedout advertising activities, focusing on TV commercials implemented in the second quarter, the progress
rate for achieving the targeted operating profit has become low in the period under review, but theresults are in line with the initial targets.

- 5 -Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q2

2. Quarterly consolidated financial statements and significant notes thereto(1) Quarterly 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
Intangible assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Leasehold deposits
Other
Total investments and other assets
Total non-current assets
Total assets- 6 -As of November 30, 2019

5,627,035
318,354322,660
266
32,996(2,704)
6,298,608

12,407,692
307,149
450,551388
14,249(2,939)13,177,092

406,924464,290

834,737390
835,127

870,039325
870,364

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

6,112,829
579,822
4,551
6,697,203
8,031,859
21,208,951

Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q2(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- 7 -As of November 30, 2019

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

86,16621,165
1,178,674
931,939
120,621
156,598
4,037,721
257,751–
118,635
6,909,274

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

4,123,006
49,033
4,172,039
11,081,314

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

6,234,250
3,974,643(86,596)
10,122,298(7,607)(7,607)
10,663
3,372,965
9,079,116(5,324)(5,324)
10,663
10,127,637
21,208,951

Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q2(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statement of income(Thousands of yen)Six months ended
November 30, 2019
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest and dividend income
Cancellation penalty income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share issuance cost
Stock market listing expenses
Commission expenses
Foreign exchange losses
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
Loss before income taxes
Income taxes - current
Loss
Loss attributable to owners of parent

6,294,801
912,283
5,382,518
5,272,678
109,840
1,065
1,964
567
3,597
2,659
28,102
15,175
19,456625
26,705
3,510
96,234
17,203
6,421
37,85444,276(27,073)
64,036(91,110)(91,110)- 8 -Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q2

Quarterly consolidated statement of comprehensive income(Thousands of yen)Six months ended
November 30, 2019
Loss
Other comprehensive income
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent(91,110)
2,283
2,283
(88,826)(88,826)- 9 -Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q2(3) Quarterly consolidated statement of cash flows(Thousands of yen)Six months ended
November 30, 2019
Cash flows from operating activities
Loss before income taxes
Depreciation
Impairment loss
Loss on retirement of non-current assets
Share issuance cost
Increase (decrease) in provision for loss on closureof business locations
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Interest and dividend income
Interest expenses
Commission expenses
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
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Payments of leasehold deposits
Proceeds from refund of leasehold deposits
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
Other, net
Net cash provided by (used in) financing activities
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(27,073)
291,42237,854
6,421
28,102(6,960)234
58,722(1,065)2,659
19,456
26,705
11,322(125,713)(116)
18,614(10,002)214,381
114,534(26,528)
83,281
23,452739,704
1,205(4,245)(7,957)
728,706(190,127)(265,221)(5,045,734)(168,316)
4,650(5,664,749)
3,165
4,980,545(65,168)
6,815,396(19,373)
11,714,565
235
6,778,757
5,468,495
12,247,252- 10 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2019 Q2(4) Notes to the quarterly consolidated financial statements(Notes on premise of going concern)
Not applicable.
(Notes on significant changes in the amount of shareholders’ equity)
The share capital and the capital surplus both received an addition of ¥3,421,749 thousand due to the
new issuance of shares in association with the listing of the Company’s common shares on the Tokyo
Stock Exchange Mothers. On the other hand, as a result of deducting the amount of ¥947,106 thousandof capital surplus and transferring it to retained earnings in order to eliminate cumulative loss, the sharecapital, capital surplus and retained earnings were ¥6,234,250 thousand, ¥3,974,643 thousand, and¥(86,596) thousand, respectively.
(Segment information, etc.)[Segment information]
First six months of the fiscal year ending May 31, 2020 (from June 1, 2019 to November 30, 2019)
1. Information on the amount of sales and profit (loss) for each reportable segment(Thousands of yen)Amount in thequarterly
Adjustments
consolidated(Note) 1
financialstatement(Note) 2

Reportable segment
SansanBusiness
Net sales
Sales to external customers
Inter-segment sales andtransfers

Eight Business

Total

5,789,973

504,828

6,294,801–

6,294,801

–

–

–

–

–

Total

5,789,973

504,828

6,294,801–

6,294,801

Segment profit (loss)

2,112,931(466,528)

1,646,403(1,536,562)

109,840

Notes: 1. The adjustments stated for segment profit (loss) of negative ¥1,536,562 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 six months ended November 30, 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.

- 11 -