Sansan Inc

Now, it's time for the first half of the first half of the Sansan Co., Ltd.'s financial statement meeting in May of 2027. I would like to introduce today's speakers. I'm Hashimoto, the executive officer of the CFO. I'm Onishi, the executive officer of the Building 1 Business Department. Today's presentation is based on the financial statement and Bill 1 service introduction materials. We will share the screen on Zoom, but if you participate by phone, please see the materials on our IR site. Next, about today's time schedule, about 10 minutes for the financial statement from Hashimoto and about 10 minutes for the Bill 1 business from Onishi. After that, the hearing will be held until 6 p.m. Now, I would like to introduce Hashimoto. Thank you for participating in this meeting. I am Hashimoto from CFO.

Today, I will first explain the achievements of the first quarter of May of 2027. After that, I will explain Bill 1 from Onishi. Please take a look at page 4. First, I would like to explain the highlights of the first quarter's achievements. The first point is that the sales volume has increased by 20.1% over the previous year and maintained a strong growth. The ARR in connection was 5.21 billion yen by the end of August 2026. Second, the operating profit after adjustment has increased by 328.3% over the previous year, and the profit loss has advanced significantly. The performance of the second quarter has also been progressing smoothly. Third, the high growth of Kairi AX Service Bill 1 has continued, and the sales value has increased by 34.4% over the previous year. The previous company's business performance is as shown on page 5. The sales volume has increased by 20.1% over the previous year. The total sales revenue is 87.6% and maintains a high level. After adjustment, sales revenue has increased by 328.3% over the previous year due to the increase in sales volume and the decrease in return ratio. The profit after adjustment has been greatly increased with the growth of the profit after adjustment. I will explain the details of the profit after adjustment. Please see page 6. First of all, the profit after adjustment has increased significantly, and the interest rate has been reduced to a low level, which has increased the profit after adjustment. Next, sales have increased by 38,100,000 yen out of half-price, but sales have decreased by 4 points. In addition, sales have decreased by 7.5 points, with sales have decreased by 67,700,000 yen compared to the previous year, when we were promoting a large-scale promotion. As a result, the return rate of sales after adjustment decreased by 12.4 points in the previous year, and the sales profit after adjustment increased significantly. Please see page 7 for the appearance of each segment. The sales value of the 33 Building 1 business has grown significantly. The operating profit after adjustment was greatly increased by the black market price of Bill 1, which was a large increase of 306.3% per year. The 8th business continued to increase rapidly. The operating profit after adjustment continued to increase by investing in growth after the quarter end. Next, I will explain the details of each segment from page 8. The sales of the 33 Bill 1 business increased by 18.4% in the previous year. In terms of service, 33 Bill 1 increased by 9.8% in the previous year and 34.4% in Bill 1. In addition, contract AX service contract 1 and the 9-out company, a group company, have been formed. Among them, the sales value of contract 1 increased by 93.4% in the previous year, and the number of contracts increased by 81.6% in the previous year, making it 841, and the growth continued. Adjustable business profits increased by 306.3% in the previous year. In conclusion, the net profit of SANSAN alone increased by 34.4% in the previous year, and the net profit of BIL-1 alone increased by 198 million yen, making it the first black market base. I will explain SANSAN's performance and KPI on page 9. The sales volume of the first quarter was 9.8% in the previous year, and it has grown slightly, but the stock sales volume, which is an important indicator of the performance, grew 12.1% in the previous year, as shown on the left side of the slide. The main reason for the slow growth of the sales volume is that the previous year's profit margin of 33% decreased by 19.8%. In this other sales volume, the initial income related to the new contract is the center, and there is a tendency to change depending on the size and shape of the contract obtained. In addition, as shown in the graph in the center, the first quarter of the year, the number of contracts increased by 13.7% in the previous year, and the number of direct increases in the quarter increased by 381. On the other hand, as a result of the acquisition of small-scale customers as the basis for the new contract, the initial income went down in the previous year. In September, the official release of AI SEARCH, a new feature, was completed, and we are looking forward to receiving a strong new order from SHIMOKI, which is starting a full-scale business activity to strengthen the standard license from the second quarter. The sales growth rate of the first half of the year is 10%, which is the annual reduction of the sales growth rate of the first half of the year, which is the annual reduction of the sales growth rate of the first half of the year, which is the annual reduction of the sales growth rate of the first half of the year, which is the annual reduction of the sales growth rate of the first half of the year, which is the annual reduction of the sales growth rate of the first half of the year, which is the annual reduction of the sales growth rate of the first half of the year, which is the annual reduction of the sales growth rate of the first half of the year, which is the annual reduction of the sales growth rate of the first half of the year, which is the annual reduction of the sales growth rate of the first half of the year, Next, I will explain the KPI of Bill 1 on page 10. The MRR of August 2026, the graph on the left, is 13.1 billion yen, which is 33% more than the previous year. Next, the number of paid contracts in the graph in the center is 28.6% higher than the previous year's contract, and the monthly stock sales value per paid contract is 3.5% higher than the previous year's contract, which is very good. The monthly contract rate of the last 12 months shown on the right side is 0.33%, maintaining a low level. In addition, the sale of the new budget plan equipped with the AI function that started the proposal from June has been going well, and I will explain the details later from Onishi. Next, I will explain about the 8 business. Please see page 11. The sales value of the B2C service has increased by 8.1% over the previous year. The sales of B2B services increased by 34.8% in the previous year due to the high growth of business events and related services, and the sales of the entire eight-person business increased by 32.6% in the previous year. The eight-person business has improved the profitability of the business, such as achieving two consecutive long-term blackouts, and is strengthening the personnel system for future growth. Therefore, in the first half of the year, the red interest rate of the adjusted business interest was slightly increased in the previous year, but in the second half, it is expected to be black. Next, I would like to explain the medium-term financial policy and the revenue forecast for May of 2027. Please see page 13. Please take a look at page 13. First of all, there is no change from what was announced in July this year about the medium-term financial policy, but I will talk about the points again. As for the sales volume, the annual average growth rate for the next three years will be 16% to 20%. In May of 2029, the adjusted sales profit rate will be 25% to 30%. Please take a look at page 14. The results of the first quarter are that the sales volume, adjusted business profits, and the net profit of the second quarter have progressed smoothly, and there has been no change in the net profit that was announced in the base. In addition, our business model is a stock model, so the sales volume has increased with the progress of the quarter, and the profits have also expanded over the short term. In addition, we are planning to sell 2.5 yen for the mid-term and 2.5 yen for the end of the year. That's all for my explanation. Next, I would like to explain the building plan from Onishi.

My name is Onishi Onishi, CEO of Bill One. From now on, I will explain Bill One, a service that currently provides KD AX services, and its efforts for future growth. Bill One is a KD AX service that solves the problem of KD business, such as demand, demand, production, and re-management, by raising the concept of changing the way all companies work by making a loss. We aim to change the way all companies operate, not only in the accounting department but also in the management department, by utilizing technology such as AI in the business process involving procurement and receipt documents. Since the start of service delivery in 2020, Billion One has continued to increase its sales growth rate. Initially, we started with the application form, but after that, we expanded the supply area for application processing, credit card production, and payment production, as well as remodeling management and management operations. We are also using technology, including AI, at our feet. In the application form, we not only receive the application form and convert it into data, but also expand the range of automation to the business processes such as standardization, identification, and approval. In this way, we are expanding our management business as a target, and we are evolving the service on both sides by making the value of delivery through technology higher in each business. First of all, it is the billing of Bill-1 receipts, which is the center of the current business. In Bill-1, the receipts that are delivered in various ways, such as shipping and e-mail, are billed separately, and the contents are accurately data-based and structured to enable one-dimensional management. This is based on the technology and know-how to accurately dataize the analog information that has been accumulated over the years. In this way, it is a great strength of Bill 1 to be able to generate accurate application data, that is, temporary information. Currently, we are covering the application form, registration, approval, approval, and receipt, which are later processes, based on the amount and data of the application. Automation using AI, etc. is also in progress. The use of such functions has expanded steadily, and the number of users of automated functions, including AI automatic communication, exceeds 200. In addition, the new budget plan, which was proposed in June, is also steadily rising. In the new subscription of Asimoto, about 90% of customers who have applied for a new budget plan can use the new function with AI, which is a contract above the standard edition. and many more. In the future, we will continue to use the strength to accurately identify the issuers, and use AI and other technologies to expand the area where the issuers can be lost in processing. Next, we will look at the bill-one expenses. In conventional expenses production, employees replace the cost and then submit a receipt to be produced. This is the general process. In this case, the employee will have financial and psychological burden, and by focusing on the application at the end of the month, the work load of the accounting department will also increase. In addition, the applicant and the accounting department will also have to confirm the application content and the bid, and such tasks will occur. In the case of these issues, in the Bill-1 accounting system, in addition to the functions as a general accounting production system, and others. By utilizing the Bill One Business Card issued by the company itself, we aim not only to make cash production more efficient, but also to eliminate the cost of repayment by the employees themselves. Specifically, we will issue the Bill One Business Card to all employees, and replace it with the payment by the credit card, rather than repayment. Depending on the content of the pre-application, you can easily determine the amount of use for each card, so you can use only the amount you need when you need it, and you can also control the risk by using a certified card by all employees. After payment, the card's user name will be reflected immediately, and the submitted receipt will be dataed at 99.9% accuracy. In addition, the convenience and accuracy of the receipt and the card user name, The confirmation based on each company's regulations will also be automated, which will reduce not only the number of applicants, but also the number of confirmations and refunds of creditors and creditors in charge. Some companies have already abolished public money management and repayment expenses, and have reduced the number of cases per month to 100 hours, and have reduced the number of cases in which the amount of money spent on expenses has been reduced by one-third. As you can see, Bill 1 is a service that not only makes cash production more efficient, but also changes the entire business process from payment to cash processing. At Hashimoto, we receive new contracts every month, focusing on existing customers, and we are expanding at a steady pace. Next, we have Bill 1 Registration Management. After issuing an application, there are many analogic tasks in the company's registration management. Among them, the biggest burden is the amount of money you have to pay and the amount of money you have to withdraw. In the case of an actual transfer, the name of the transfer and the name of the transaction are different, and due to the amount of money you have to pay and the amount of money you have to withdraw depending on the transfer fee, you cannot process it in a simple system name, and it is a task that is easy for people to confirm and judge. In addition, there are cases where confirmation work occurs between the management department and the sales department due to the inability to grasp income information in real time. At Bill & Bank, we are promoting the efficiency and automation of such reconstruction management operations by connecting from the creation and publication of the request form to the subsequent income cancellation and non-income management with one service. What makes it possible is the real-time income cancellation using Bill & Bank. Each transaction is divided into its own virtual account, and the account information is sent to the tax office to be issued, and the income information and remittance information are accurately tied together. And every time there is an income to the Bill & Bank, the income data is automatically obtained and erased in real time. In addition, even in cases where the amount does not match, we will expand the range that can be automated by learning the patterns that were processed in the past. There have been cases in which the company has already automated the 80% of the income-exploitation, and there have also been cases in which it has automated 90% of the income-exploitation and reduced the number of jobs to one-sixth. In this way, we are connecting the execution of the application, the income-exploitation, and the non-income-exploitation management into one, and we will eliminate the analogic work and the individualistic confirmation work with the re-enrollment management. The re-enrollment management of VIL-1 is also expanding steadily at our feet. I would like to explain the profit model of the Bill-1 loan and the Bill-1 rebate management. The basic fee system is the same as the Bill-1 application fee, and it consists of three editions based on the annual use fee according to the amount of use. In addition to this, the Bill-1 loan itself is the source of the Bill-1 business card, and it is a model that allows you to get a fee income according to the card payment amount. In addition, for small and medium-sized companies, we are developing a suite license that can be used with a set of multiple functions, such as bill-to-bill fees and bill-to-bill fees. In this way, we are thinking of expanding the use of each service alone and promoting the use of multiple services to expand the opportunity of revenue for customers. Finally, I would like to talk about future growth expectations. As I explained so far, BIL-1 has expanded its supply range in the field of cash production, recycling management, and accounting operations based on the amount of receivables. Currently, BIL-1 has 5,468 major contracts. In addition to major contract companies, the Invoice Network, including free contract companies and companies that submit receivables to users of BIL-1, has expanded to about 27.8 million companies. On the other hand, there are about 2 million companies in Japan, and there is room for further expansion along with the number of paid contracts and the invoice network. Based on this situation, we believe that there are two major opportunities for growth in the building industry. One is the expansion of revenue opportunities across companies by expanding the range of support in the management business. And the other is the expansion of the number of paid contract companies for the limited supply of about 2 million companies in Japan and the expansion of the invoice network, which will also be a future revenue opportunity. We will continue to expand our business experience in the accounting business while using technology, and aim for further growth of VIL-1 as an accounting AX service that can change the balance of all companies. That's all for the explanation of VIL-1 services. After this, I will answer your questions.