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 8, 2021

Financial Results for FY2021 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, Executive Officer, CFO
TEL:+81-3-6758-0033
Scheduled date to file quarterly securities report:
October 8, 2021
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, 2022
(from June 1, 2021 to August 31, 2021)(1) Consolidated operating results (cumulative)
Net sales
Three months ended
August 31, 2021
August 31, 2020Three months ended
August 31, 2021
August 31, 2020

Operating profit

Millions of yen% Millions of yen

4,597
3,667

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

25.4
18.3

% Millions of yen

(102)
193

–
(22.1)

Three months ended August 31, 2021:
Three months ended August 31, 2020:

Basic earnings per
share

Diluted earnings
per share

Yen

Yen

20.93
2.75

20.58
2.72

Profit attributable toowners of parent

Ordinary profit

754
101

% Millions of yen

644.3(47.4)¥(456) million [–%]
¥89 million [(10.5)%](2) Consolidated financial position
Total assets
As ofAugust 31, 2021
May 31, 2021
Reference:

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

23,26624,31012,21012,58452.0
51.5

EquityAs of August 31, 2021:
As of May 31, 2021:¥12,103 million¥12,516 million

652
85

%

662.8
(19.6)

2. Cash dividends
Annual dividends
First quarter-end

Second quarter-end Third quarter-end

Yen

Fiscal year ended
May 31, 2021
Fiscal year ending
May 31, 2022

Yen–

Fiscal year-end

Yen

0.00

–

Total

Yen

Yen

0.00

0.00

0.00

0.00

–

Fiscal year ending
May 31, 2022
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, 2022 (from June 1, 2021 to
May 31, 2022)
Net sales

Fiscal year ending
May 31, 2022

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

Operating profit

Millions ofyen%Millions ofyen%Millions ofyen

20,230to
20,716

25.0
to
28.0

450
to
800

(38.9)
to
8.6

–

%

–

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: Yes
b. 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 August 31, 2021

31,195,523 shares

As of May 31, 2021

31,183,645 sharesb. Number of treasury shares at the end of the period
As of August 31, 2021

95 shares

As of May 31, 2021

40 sharesc. Average number of outstanding shares during the period
For the three months ended August 31, 2021

31,185,068 shares

For the three months ended August 31, 2020

31,138,853 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 FY2021 Q1

Attached Material
Index
1. Qualitative information on quarterly consolidated financial results ......................................................... 2(1) Explanation of operating results ............................................................................................................ 2(2) Explanation of financial position ........................................................................................................... 5(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) Notes to the quarterly consolidated financial statements..................................................................... 10(Notes on premise of going concern)................................................................................................... 10(Notes on significant changes in the amount of shareholders’ equity) ................................................ 10(Changes in accounting policies) ......................................................................................................... 10(Segment information, etc.) ................................................................................................................. 11(Significant events after reporting period) ........................................................................................... 13- 1 -Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q1

1. Qualitative information on quarterly consolidated financial results(1) Explanation of operating results
Under the mission of “Turning encounters into innovation” and the vision of “Become business
infrastructure,” the Group is developing services to solve various business issues by using new
approaches that combine “systems that use technology and data input to digitize analog information”
with “cloud software.”Specifically, the Group is developing services in areas such as business card management, invoices andcontracts, as well as business events and seminars, to promote digital transformation (DX) to change
the working styles of companies and business people. Moreover, as a result of recent changes toworking styles due to the spread of COVID-19, new ways of thinking toward DX, and greater attention
being attracted to the SaaS (Software as a Service) products, the DX market is forecast to reach¥3,042.5 billion (an increase of ¥2,251.3 billion since 2019) by 2030 (Note 1.), while the SaaS market
in Japan is forecast to reach ¥1,117.8 billion by 2024 (an increase of ¥516.2 billion since 2019) (Note2.). In addition, as the Group has grown, the B2B business card management service market has seen
12-fold expansion from 2012 to 2019, and the “Sansan,” operated by the Company, holds an 83.5%
market share in this market (Note 3.)
In the first three months of the fiscal year ending May 31, 2022 (“the period under review”), the Group
engaged in initiatives such as reorganizing the structure to increase the speed of business growth andstrengthening the sales structure through strategic hiring, in order to realize continuous growth of net
sales. In addition, apart from conducting advertising focused on TV commercials for the B2B businesscard-based contact management service “Sansan,” the Group engaged in initiatives such as expanding
functions for the online invoice receiving solution “Bill One” and “Eight,” a business card management
app.
Furthermore, the Company decided to select and apply for the “Prime Market” in Tokyo Stock
Exchange, Inc.’s new market segments in addition to deciding to implement a 4-for-1 stock split on its
common shares with the effective date of December 1, 2021. For details, please refer to “Notification
Regarding Application for Selection of ‘Prime Market’ Under the New Market Segments” and“Notification Regarding Stock Split and Partial Amendments to Articles of Incorporation” announced
on October 8, 2021.
As a result, net sales totaled ¥4,597,074 thousand (up 25.4% year on year), gross profit totaled¥4,088,249 thousand (up 26.6% year on year), and gross profit margin was 88.9% (up 0.8 points year
on year) in the period under review. However, operating profit was recorded at negative ¥102,274
thousand (compared to operating profit of ¥193,918 thousand in the previous fiscal year). Progress wasmade in the strategy to achieve medium- to long-term growth, so in addition to the ¥209,094 thousand
year on year increase in advertising expenses, this was attributed to the ¥489,923 thousand year on year
increase in personnel expenses due to the boosted hiring of employees and was in line with theconsolidated earnings forecast announced at the beginning of the fiscal year. In addition, as announced
on July 19, 2021, the recording of ¥979,690 thousand of gain on sales of investment securities in nonoperating income resulted in ordinary profit of ¥754,603 thousand (up 644.3% year on year) and profit
attributable to owners of parent of ¥652,583 thousand (up 662.8% year on year).
Notes: 1. Based on “2020 Outlook of the Digital Transformation Market” by Fuji Chimera ResearchInstitute
2. Based on “2020 New Software Business Markets” by Fuji Chimera Research Institute
3. Based on “Latest trends in business card management services and sales services[SFA/CRM/online business card exchange]” by Seed Planning, Inc.
Results by segment are as follows.
Additionally, effective from the first quarter of the current fiscal year, the Company has reorganized its
business management system with the aim of optimizing the allocation of resources to each product, inorder to promote the growth of each product. As a result, the former “Sansan Business” has been

- 2 -Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q1changed to “Sansan/Bill One Business” as a business that includes multiple products such as “Sansan”
and “Bill One.”(i) Sansan/Bill One BusinessThis business segment includes services such as B2B business card-based contact management
service “Sansan,” and online invoice receiving solution “Bill One.”a. “Sansan,” a B2B business card-based contact management service
The Company engaged in strengthening the sales structure through strategic hiring andconducting advertising, focused on TV commercials, aimed at further increasing the number ofsubscriptions and the monthly sales per subscription for “Sansan.” While the spread of
COVID-19 negatively affected the acquisition of new subscriptions, we succeeded inenhancing our sales system and steadily acquired new customers among major manufacturers
and medium to small enterprises. As a result, at the end of the period under review, the numberof “Sansan” subscriptions increased steadily to 7,992, up 14.7% year on year. In addition,monthly recurring sales per subscription totaled ¥164 thousand, up 5.8% year on year.
Furthermore, as a result of carrying out ongoing initiatives to expand use among existingcustomers to achieve a stronger customer foundation, the average monthly churn rate over the
past 12 months (Note 4.) was 0.62% (an increase of 0.02 points year on year), maintaining a
low churn rate.
As a result, net sales in “Sansan” totaled ¥4,068,709 thousand (up 21.2% year on year), of
which recurring sales (fixed revenue) in “Sansan” totaled ¥3,899,709 thousand (up 21.9% year
on year) and other sales totaled ¥169,000 thousand (up 7.4% year on year).
Note:

4. Ratio of decrease in monthly fees associated with subscription cancellations to totalmonthly fees for existing subscriptions for “Sansan.”b. “Bill One,” an online invoice receiving solution
We actively engaged in efforts such as strengthening the sales structure through optimal
resource allocation and enhancing service functions under a new business management
structure to further expand the number of paid subscriptions and MRR (Note 5.) for “Bill One.”As a result, the number of paid subscriptions for “Bill One” at the end of the period underreview totaled 343, an increase of 1,219.2% year on year and, in August 2021, MRR was¥34,114 thousand, an increase of 9,933.5% year on year, continuing to grow at a high rate. In
addition, steady progress in acquiring new subscriptions from medium and large enterprises
resulted in monthly sales per paid subscription of ¥99 thousand (up 661.5% year on year). By
working on personnel hiring, advertising activities, and making improvements to the service,
the Group aims to amass more than ¥1.0 billion in ARR (Note 6.) by May 31, 2022.
As a result, net sales in “Bill One” totaled ¥89,978 thousand (up 15,825.4% year on year).
Notes: 5. Monthly Recurring Revenue
6. Annual Recurring Revenuec. Others
The Group focused on launching new services by leveraging the strengths and knowledge aswell as the sales structure it had cultivated through existing serves.
As a result, other net sales totaled ¥2,209 thousand (up 871.5% year on year).
As a result, net sales totaled ¥4,160,897 thousand (up 23.9% year on year) and segment profit
totaled ¥1,137,861 thousand (down 10.4% year on year) in Sansan/Bill One Business in the period
under review.
- 3 -Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q1(ii) Eight Business
Apart from “Eight,” a business card management app, this business segment includes thetranscribed media service provided by logmi, Inc. (hereinafter, “logmi”).
a. B2C services
As a result of efforts such as enhancing the functions of “Eight ONAIR,” business event media,
the number of “Eight” users (Note 7.) at the end of the period under review totaled 2.96
million, an increase of 0.20 million year on year.
As a result, net sales from B2C services totaled ¥71,268 thousand (down 4.3% year on year).
Note:

7. Number of confirmed users who registered their business card to their profile after
downloading the applicationb. B2B services
The Company worked on strengthening monetization of the various B2B services. As a result,the number of “Eight Company Premium” subscriptions at the end of the period under review
totaled 2,342, an increase of 33.3% year on year. Additionally, results from our consolidated
subsidiary logmi began to contribute to results from September 2020.
As a result, net sales from B2B services totaled ¥352,755 thousand (up 50.2% year on year).
As a result, net sales in Eight Business totaled ¥424,023 thousand (up 37.1% year on year) in the
period under review. Segment profit was recorded at negative ¥182,646 thousand (compared tosegment profit of negative ¥193,404 thousand in the previous fiscal year) due to being in the phasein which upfront investments were being made to increase future profitability.

- 4 -Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q1(2) Explanation of financial position
AssetsTotal assets at the end of the first quarter of the fiscal year ending May 31, 2022 were ¥23,266,642
thousand, down ¥1,043,553 thousand from the end of the previous fiscal year. This was primarily due
to a decrease of ¥1,979,811 thousand in investment securities due to the sale of shares of WingArc1st
Inc., a decrease of ¥162,869 thousand in accounts receivable – trade, and an increase of ¥855,507
thousand in cash and deposits.
Liabilities
Total liabilities at the end of the quarter under review were ¥11,056,492 thousand, down ¥668,805
thousand from the end of the previous fiscal year. This was primarily due to a decrease of ¥200,000
thousand in short-term borrowings, a decrease of ¥630,480 thousand in current portion of long-termborrowings, a decrease of ¥490,254 thousand in deferred tax liabilities, an increase of ¥689,558
thousand in long-term borrowings and an increase of ¥322,732 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 ¥12,210,150 thousand, down ¥374,747 thousand
from the end of the previous fiscal year. This was primarily due to a decrease of ¥1,102,653 thousand in
valuation difference on available-for-sale securities and an increase of ¥652,583 thousand in retained
earnings due to recording of profit attributable to owners of parent.
(3) Explanation of consolidated earnings forecasts and other forward-looking statements
The forecasts of consolidated financial results for the fiscal year ending May 31, 2022 have notchanged from the forecast announced on July 14, 2021. Under the new reportable segments, net sales
for the Sansan/Bill One Business are expected to increase by 24% to 28% year on year, and net sales
for the Eight Business are expected to increase by 23% to 27% year on year.

- 5 -Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q1

2. Quarterly consolidated financial statements and significant notes thereto(1) Quarterly consolidated balance sheet(Thousands of yen)
As of May 31, 2021
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
Other
Total investments and other assets
Total non-current assets
Total assets- 6 -As of August 31, 2021

12,389,111
571,096
469,588
117,263(4,877)
13,542,182

13,244,619
408,226569,220
137,474(5,760)14,353,781

504,899542,637

1,023,375
185,662149
1,209,187

1,025,951
250,060
137
1,276,150

8,344,948
702,472
6,505
9,053,926
10,768,012
24,310,195

6,365,136
722,857
6,078
7,094,073
8,912,861
23,266,642

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q1(Thousands of yen)
As of May 31, 2021
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
Deferred tax liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets- 7 -As of August 31, 2021

195,216200,000
1,085,568
1,175,172
154,825
271,263
6,719,677
359,373
82,115
10,243,213

90,615–455,088
1,094,607
174,119
210,909
7,042,409
214,594
86,512
9,368,857

879,423571,290
31,3691,482,083
11,725,297

1,568,982
81,03537,616
1,687,634
11,056,492

6,312,946
4,053,338
526,839(262)
10,892,863

6,333,189
4,073,581
1,179,423(769)
11,585,425

1,622,129
1,130
1,623,260
65,886
2,888
12,584,898
24,310,195

519,476(1,539)517,936
98,816
7,972
12,210,150
23,266,642

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q1(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statement of income(Thousands of yen)Three months ended
August 31, 2020
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest and dividend income
Foreign exchange gains
Cancellation penalty income
Subsidy income
Gain on sale of investment securities
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Commission expenses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent- 8 -Three months ended
August 31, 2021

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

4,597,074
508,824
4,088,249
4,190,524(102,274)

350
185
1,914
1,191
–
157
3,799

118
–
120
695
979,690
21,6891,002,314

7,910
–
2,646

3,909
673
6,872

84,650128,141

1,121
96,328101,388
101,388
38,733(22,890)
15,84385,545–85,545

5,838
145,436
754,603754,603
113,426(7,491)
105,935
648,667(3,915)652,583

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q1

Quarterly consolidated statement of comprehensive income(Thousands of yen)Three months ended
August 31, 2020
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 9 -Three months ended
August 31, 2021

85,545648,667

–
4,014
4,014
89,560(1,102,653)(2,670)(1,105,323)(456,655)

89,560(452,740)–(3,915)

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q1(3) 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)
Not applicable.
(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No.
29, March 31, 2020) and relevant ASBJ regulations effective from the beginning of the first quarter ofthe current fiscal year, and it has recognized revenue at the time the control of promised goods orservices is transferred to the customer at the amount expected to be received upon exchange of said
goods or services.
The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations issubject to the transitional treatment provided for in the proviso to paragraph 84 of the AccountingStandard for Revenue Recognition. The cumulative effect of the retrospective application, assuming the
new accounting policy had been applied to periods prior to the start of the first quarter of the current
fiscal year, was added to or subtracted from the opening balance of retained earnings of the first quarterof the current fiscal year, and thus the new accounting policy was applied from such opening balance.
The impact of this change on profit and loss, the opening balance for retained earnings for the first
three months of the current fiscal year was immaterial.
Furthermore, the information on disaggregation of revenue from contracts with customers during thefirst three months of the previous fiscal year has not been disclosed as allowed by the transitional
treatment provided for in paragraph 28-15 of the Accounting Standard for Quarterly Financial
Reporting (ASBJ Statement No. 12, March 31, 2020).
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement
No. 30, July 4, 2019) and relevant ASBJ regulations from the beginning of the first quarter of thecurrent fiscal year, and it has applied the new accounting policy provided for by the AccountingStandard for Fair Value Measurement, etc. prospectively in accordance with the transitional measuresprovided for in paragraph 19 of the Accounting Standard for Fair Value Measurement, and paragraph44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019).
The application of the “Accounting Standard for Fair Value Measurement” and relevant ASBJ
regulations has no effect on the quarterly consolidated financial statements for the three months ended
August 31, 2021.

- 10 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q1(Segment information, etc.)[Segment information]
Ⅰ

First three months of the fiscal year ended 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(Thousands of yen)Amount in
the quarterly
Adjustments consolidated(Note) 2
financialstatement(Note) 3

Reportable segments

Net sales
Sales to externalcustomers
Intersegment sales ortransfers
Total
Segment profit (loss)

Others(Note) 1

Sansan/Bill One
Business

Eight
Business

Total

3,357,917

309,336

3,667,253–

3,667,253–

3,667,253

–

–

–

–

–

–

–

3,357,917

309,336

3,667,253–

3,667,253–

3,667,253

1,269,689(193,404)

1,076,284–

1,076,284(882,366)

193,918

Total

Notes: 1. The “Others” category is a business segment that is not included in the reportable segments, and includes
subsidiaries’ businesses.
2. The adjustments stated for segment profit (loss) of negative ¥882,366 thousand comprises the amounts ofcorporate expenses not attributable to any reportable segment and mostly consists of general and administrative
expenses.
3. 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 in thescope 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.

- 11 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q1

Ⅱ First three months of the fiscal year ending May 31, 2022 (from June 1, 2021 to August 31, 2021)
1. Information on the amount of sales and profit (loss) for each reportable segment
Reportable segments

Net sales
Sales to externalcustomers
Intersegment sales ortransfers
Total
Segment profit (loss)(Thousands of yen)Amount in
the quarterly
Adjustments consolidated(Note) 2
financialstatement(Note) 3

Sansan/Bill One
Business

Eight
Business

Total

Others(Note) 1

Total

4,160,897

422,728

4,583,625

13,4484,597,074–

4,597,074

–

1,295

1,295

204

1,499

(1,499)–4,160,897

424,023

4,584,920

13,6534,598,574(1,499)4,597,074

1,137,861(182,646)

955,2142,159

957,373(1,059,648)(102,274)

Notes: 1. The “Others” category is a business segment that is not included in the reportable segments, and includes
subsidiaries’ businesses.
2. The adjustments stated for segment profit (loss) of negative ¥1,059,648 thousand comprises the amounts ofcorporate expenses not attributable to any reportable segment and mostly consists of general and administrative
expenses.
3. Segment profit (loss) is adjusted with operating profit in the quarterly consolidated statement of income.

2. Matters regarding changes in reportable segments
Effective from the first quarter of the current fiscal year, the Company has reorganized its
business management system with the aim of optimizing the allocation of resources to eachproduct, in order to promote the growth of each product. As a result, the former “Sansan
Business” has been changed to “Sansan/Bill One Business” as a business that includes multiple
products including “Sansan” and “Bill One.”The segment information of the three months ended August 31, 2020 is based on the division of
the reportable segment of the three months ended August 31, 2021.
(Application of accounting standard for revenue recognition, etc.)
As stated in the above changes in accounting policies, effective from the beginning of the firstquarter of the current fiscal year, the Company has applied the Accounting Standard for
Revenue Recognition and relevant ASBJ regulations and changed the accounting processing
methods related to revenue recognition, resulting in similar changes to the measurement
method for profit or losses in the business segments.
As a result, the effect of this change on the quarterly consolidated financial statements for the
first quarter of the current fiscal year is immaterial.
3. Information on impairment loss of non-current assets or goodwill, etc. for each reportablesegment(Significant change in goodwill amount)Not applicable.

- 12 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q1(Significant events after reporting period)(Stock split and partial amendments to the Articles of Incorporation in relation to stock split)
At the meeting of the Board of Directors held on October 8, 2021, the Company resolved to implement
a stock split and to partially revise the Articles of Incorporation relating to the stock split.
(1) Objective of the stock split
The purpose of the stock split is to lower the unit investment amount, thereby increasing stock
liquidity and broadening the shareholder base.
(2) Outline of the stock split(i) Method of stock split
The Company will implement a 4-for-1 stock split of common shares owned by shareholders
listed or recorded in the closing register of shareholders with a record date of November 30,
2021.
(ii) Number of shares to be increased by stock split
Total number of issued shares before the stock split

31,195,831 shares

Number of shares to be increased by this stock split

93,587,493 shares

Total number of issued shares after the stock split

124,783,324 shares

Total number of shares authorized to be issued after thestock split

470,800,000 shares

Note:

As the total number of issued shares before the stock split are based on the total
number of issued shares as of September 30, 2021, the actual number may fluctuate
until the record date of the stock split as a result of the exercise of share acquisitionrights.

(iii) Schedule of the stock split
Date of public notice of the record
November 16, 2021
date
Record dateNovember 30, 2021

Effective date

December 1, 2021(iv) Impact on per share information
Per-share information on the premise that the stock split was conducted at the beginning of
the previous fiscal year is as follows.
Three months ended August 31, 2020Three months ended August 31, 2021
(from June 1, 2020 to August 31, 2020) (from June 1, 2021 to August 31, 2021)
Basic earnings per share

¥0.69

¥5.23

Diluted earnings per share

¥0.68

¥5.15

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Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q1(3) Partial amendments to the Articles of Incorporation in relation to the stock split(i) Reason for amendments to the Articles of Incorporation
In conjunction with the stock split, the total number of authorized shares in Article 6 of theCompany’s Articles of Incorporation will be revised by resolution of the Board of Directors
in accordance with the provisions in Article 184, paragraph (2) of the Companies Act.
(ii) Details of amendments to the Articles of Incorporation
The details of the amendments are as follows. (Underlined portions indicate the proposedchanges.)
Current Articles of Incorporation
Article 6

Proposed Amendment(Total Number of Authorized Shares)

Article 6(Total Number of Authorized Shares)

The total number of shares authorized to be issued

The total number of shares authorized to be issued

by the Company shall be 117,700,000 shares.

by the Company shall be 470,800,000 shares.

(iii) Schedule of the revision of the Articles of Incorporation
Effective date

December 1, 2021

(4) Other(i) Change in the amount of share capital
The amount of share capital will not change as a result of this stock split.

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