Sansan, Inc.

Now that we have some time, we would like to hold the first quarter-finance meeting of the Sansan Co., Ltd. in May 2024. Here are the materials for today's meeting. The presentation will be made using the materials for today's meeting. We will share the screen on Zoom, but if you participate by phone, please see the materials posted on our website. Next, I'd like to talk about today's time schedule. I'd like to ask Hashimoto, the executive officer of our company, to give us a 15-minute presentation about the budget. After that, I'd like to ask you to remain silent until 11 o'clock. Now, I'd like to ask Hashimoto to give us a brief explanation.

Thank you for participating in today's meeting. I'm Hashimoto of CFO. I'd like to talk about the results of the first quarter of the fiscal year in May of 2024, as well as what we've seen in the past. Please look at page 4. This is the highlight of the results of the first quarter of the fiscal year in May of 2024. First of all, the sales volume has improved, and the total annual revenue has increased by 31.3%. The growth rate from the first quarter of the fiscal year has increased. In addition, with the increase in sales value, the sales profit after adjustment of the first quarter has been blacked out. Second, the sales value of Sales Direct Service 33 has grown significantly due to the effect of product promotion, etc. Third, the sales value of Invoice Management Service Bill 1 has become 2.9 times higher than the previous year. The MRR has grown by 88 million yen in the first half of the year, which is the highest in the past. The results of the first half of the year are as you can see on the 5th page. The sales volume has been steadily increasing, with an increase of 31.3%. Among them, the organic growth rate, including the creative survey, the new links of the Language Understanding Research Institute, has increased by 28.1%. The net profit-saving rate has improved a little, but this is mainly due to the fact that the net profit-saving rate of 33 has improved by about 0.6 points in the previous year. In addition, the net profit-saving rate of Bill 1 has improved from about 65% to about 80% in the previous year. With the growth of the sales volume, the profits of each stage have been blacked out, and the operating profit has increased by 3.7 billion yen compared to the previous year. Next, I would like to explain the cause of the increase in operating profit. Please see page 6. As a result of continuous enforcement of human resources since the previous year, the number of joint employees has progressed smoothly in response to the plan and has increased from 306 people to 1,505 people at the end of the previous year. In addition, as a result of the implementation of salary base-ups for the purpose of strengthening the capacity, the human resources cost has increased by 604,500,000 yen at the end of the previous year. On the other hand, advertising advertising expenses have decreased by 1.17 billion yen in the previous year, but this is because part of the cost that was intended to be raised in the first quarter was expected to be raised after the second quarter. Mainly, advertising advertising activities related to Bill 1 are scheduled, and there are no major changes to the current cost plan. Once again, I would like to explain about the business profit after adjustment. This is the sum of the corporate revenue related to the business profit and the various expenses that occur with the union of companies. Some of the corporate revenue related expenses are formed by the capitalization of the company at the end of each quarter, and in the first quarter, it became a form of minus amount. On page 7, you can see the outlook for each segment. With the addition of the 33 Bill 1 and Bill 8, the company's revenue has increased. In addition, in June of 2023, the company's research and research institute, the Language Understanding Research Institute, has applied for a new position in the first half of this year. The minuses in profit adjustment have increased, but this is mainly due to the increase in various costs associated with the G-Zone, which focuses mainly on corporate departments. As for the adjustment amount, it is listed in the 28th page of the supplementary document. Please take a look at page 8. I will explain the achievements of each segment. First of all, it is about the achievements of the 33 Building 1 business. The sales of the 33 Bill 1 business increased by 32.4% in the previous year due to the growth of 33 Bill 1 and the continued growth of Bill 1. As a result of the growth, the sales of 33 Bill 1 and 33 Bill 1 will be increased. The total sales of the 33 units increased by 15.7% in the previous year. In addition, the sales of Bill 1 increased by about 2.9 times in the previous year. The other sales volume has also grown significantly, mainly due to the corporate business of Creative Survey, which was established in February 2023. The number of contracts included in this contract DX service, Contract 1, is 174 out of 86 at the end of last year. While investing in the growth of each business, in addition to the increase in sales growth of 33,000 units, the decrease in the number of buildings in the building 1 due to the increase in sales growth, the sales growth of the adjusted business profit increased by 55.5% in the previous year, which increased the sales growth greatly. Please take a look at page 9. I will explain the details of the KPI of the first quarter of 33. The graph on the left side of the slide shows the stock sales value of 33, but the previous year's interest rate increased by 14.9% due to the promotion of the product by acquiring a new contract. In addition, the previous year's interest rate increased by 29.8% due to the increase in initial costs of 33 and other sales values. The graph in the center of the slide shows the number of contracts and monthly stock sales per contract. The number of contracts increased by 4.9% in the previous year and increased by 9.2% in the previous year. On the right side of the slide, you can see the average monthly remittance rate for the last 12 months. In August of 2023, the remittance rate was 0.46% and maintained a low level of 1% or less. The number of remittances for contracts has plummeted, but in the first quarter of this year, there has been a decrease of 82 contracts due to contract integration, including the revision of some option plans. In addition to this, the number of new contracts has increased compared to the previous quarter. In addition, this is a one-off effect of only the first quarter, and as you can see from the return rate, the impact on sales is extremely severe. Please see page 10. I will explain the details of the KPI of the first quarter of Bill 1. The graph on the left shows the MRR of Bill One. The MRR of the short month of August 2023 was about 2.9 times the same as the previous year, and the net profit in the market was the largest in the past. The graph in the middle shows the monthly stock sales per month for Bill One's paid contracts and paid contracts. As a result of the new acquisition of a medium-sized company, the number of paid contracts has increased by about 2.1 times the previous year. In the first half of the year, 371 contracts have been completed, which is the highest number of completed contracts in the past. In addition, the monthly income increase per paid contract has increased by 27,000 yen, which is 37.1% more than the previous year. On the right side of the slide, you can see the monthly repayment rate of Bill 1 in the last 12 months. At the time of August 2023, the repayment rate was 0.56%, maintaining a low level of less than 1%. As for the current situation, the invoice system has been launched since October, and in 2024, the termination period for the Regulatory Electronics Registration Act will end. We will continue to focus on the demand situation in the future, but in the near future, it is expected that it will have a temporary impact on new business activities due to the impulsion of management tasks immediately after the start of the invoice system, but for the time being, it is expected that the demand for the work efficiency of the invoice system and the Regulatory Electronics Preservation Act will increase again by the end of this year. The Bill One Business Card, which was launched in June of 2023, is in the early stages of development, and is currently under the supervision of a company in the first half of the year. We are currently working on measures to increase the spread of the service and increase the use rate. Next, I would like to explain the Eight class. Please see page 11. The sales price has increased by 12.4% in the previous year due to the revision of the price strategy in the business management service. The profit after adjustment has decreased by 44 million yen due to the increase in revenue. Page 12 shows the sales of the first quarter. The sales of the first quarter decreased compared to the previous quarter due to the lack of large-scale business events. As with the previous quarter, we are planning to hold large-scale business events in the second quarter and the fourth quarter. In the second quarter, we expect to see further improvement in profits. Please look at page 13. In September 2023, EITO changed its concept and renewed its digital name exchange and name management from Career Profile EITO to Name App EITO. As business encounters return from online to offline, we believe that the expectation of society and businesspersons for the exchange of digital names will increase in order to solve various issues that exist in the name of paper. We are currently running a business that focuses on profitability, but we believe that this concept change and the addition of features will allow us to expect an even greater increase in the number of AIT users. We believe that this will be an advantage in considering mid- and long-term business growth. Next, I would like to talk about the long-term earnings forecast. Please look at page 15. The results of the first quarter have been progressing smoothly for the second quarter, and no changes have been made from the figures announced by the agency. The advertising advertising fee for the first quarter was supposed to be in the form of the first quarter, and some of the advertising advertising fees are expected to be in the form after the second quarter, but there are no major changes to the plan for the second quarter. Please take a look at page 16. Finally, I would like to explain the medium-term financial goals. There is no change in the policy to achieve the growth of the joint sales growth rate of more than 20% in the mid-term and the growth of the joint sales growth rate of more than 20% in the mid-term and the growth of the joint sales growth rate of more than 20% in the mid-term. Thank you.