Sansan, Inc.

It is now time for the first half of the Sansan Co., Ltd. Settlement Explanation Conference held in May, 2025. Here are the materials for today's conference. We will present using the Settlement Explanation materials. We will share the screen on Zoom, but if you participate by phone, please see the materials on our website. Thank you for participating in this meeting. I'm Hashimoto from CFO.

I would like to talk about the results of the first quarter of May, 2025. Please look at page 4. This is the highlight of the first quarter of May, 2025. First point. The sales volume increased by 27.7% in the previous year. The operating profit increased by 44.4% in the previous year. The sales volume has progressed smoothly. The second point, Sales DX Service 33, due to the effect of human resources adoption and subsequent human resources development implemented in the previous period, the increase in the number of contracts has been accelerated, and the sales volume has been increased by 15.5% in the previous year. Thirdly, in Invoice Management Service Bill 1, the sales volume increased by 82.8% in the previous year, and the growth continued. In addition, we started to provide new service Bill 1 expenses. The previous company's business performance was as shown on the 5th page. The sales volume increased by 27.7% in the previous year. The net profit of sales has decreased by 0.1 points due to the increased cost of Building 1, which is still relatively low. However, the profit rate of Building 1 itself continues to improve. After adjustment, the operating profit increased due to the increase in the cost of moving, moving-related expenses, and the increase in human resources due to the strengthening of hiring. However, due to the rise in sales, the net profit increased by 44.4% last year. We will explain the stage profits below the net profit in detail on page 8, but we will also explain the increase in the cost-benefit ratio related to stock options with stock conditions. Please see page 6. I will explain the factors that increase the operating profit after adjustment. Due to the active recruitment of employees that were carried out in the previous year, the cost of employment increased by 9.99 million yen in the previous year. In addition, the temporary cost of moving from office to office and the temporary cost of moving from office to office increased by 4.63 million yen in the previous year. In addition, the advertising advertising fee was increased by 59 million yen in the previous year. However, due to the fact that the sales-high advertising advertising fee ratio remained at 11.3%, the return fee ratio decreased, and after adjustment, the operating profit increased by 63 million yen in the previous year. The profit ratio was improved by 0.3 points. In addition, we have changed the legal compensation for the other half-life expenses from May of 2025 to the human rights expenses. Therefore, we have also rescheduled the results for May of 2024. Please look at page 7. I will explain the trend of our sales profits after adjustment. The sales volume of our company is mainly stock sales, so as the market period progresses, it will gradually increase and the scale will increase. In addition, in the past few years, we have had a tendency to use a lot of advertising advertising money for paper machines, so it is easy for us to expand our sales to small machines. Since it is the same plan as in May 2020, the adjusted business profit of the first half of the year has been a smooth progress in terms of business performance. Please see page 8. I will explain the factors that have increased the cost of corporate rewards. In our company, we issue multiple stock options to our employees for the purpose of sharing value with our shareholders. Some of them are stock options with a stock price condition that allows our shareholders to reach a set standard in advance, and the costs are paid according to the stock price standard. To be specific, if the stock market reaches the right condition, the total amount will be spent, and if not, a certain amount will be spent according to the stock market level at the end of the market. Until now, the stock market level has been set to a certain amount according to the stock market level. This time, by exceeding the 7th and 9th Stock Option Procedure Conditions issued by the company in 2022, we will increase the stock-related costs due to the increase in the stock-related costs due to the increase in the stock-related costs due to the increase in the stock-related costs due to the increase in the stock-related In the future, the cost of the 7th and 9th stock options will not be taxed, but the stock options with other stock conditions will be taxed in accordance with the stock price in the same way as before. In addition, these stock payment-related costs are all non-cash costs that do not involve cash, and they have no effect on cash flow. I would like to talk about the changes in the production method of segment profits implemented by the first quarter. Please take a look at page 9. Until May of 2024, we have not distributed the total cost of the main company's expenses to each segment, but have adjusted the amount, but we decided to distribute them based on the human resources of each segment from the first quarter of May of 2025 for further management of external costs. Let's take a look at the 10 pages of each segment. The sales of the 33 Bill 1 business has increased, but due to the active adoption of the previous year, the human resources cost has increased, resulting in a decline in the previous year. The 8 business has increased in the previous year due to the decline. As a result of the changes in the profit-saving method explained earlier, compared to the old standard, the 33-billion-yen business is a minus of about 19.8 billion yen, and the 8-billion-yen business is a minus of about 2.2 billion yen. Next, I will explain the achievements of each segment from page 11. First, I will explain the achievements of the 33-billion-yen business. The sales volume increased by 26.9% in the previous year. In terms of services, 33 has a significant increase of 15.5% in the previous year, and 82.8% in Bill 1. The operating profit after adjustment was 11.9% in the previous year, including the increase in the total cost of delivery due to the increase in human resources by the adoption of sales personnel, but it is a smooth progress for the performance forecast announced by the agency. In addition, the number of contracts in the contract database, Contract1, which includes other sales values, has grown steadily, with 245 contracts of 71 units in total at the end of the previous year. I will explain the KPI of 33. Please see page 12. The graph on the left shows the stock price of SANSAN, which is 15.9% higher than the previous year. The graph in the middle shows the contract number and the monthly stock price per contract. As a result of a relatively small-scale customer acquisition in the training process of the sales personnel that has been increased in the previous period, the number of contracts has increased by 10.6% in the previous year's same period and increased by more than 300 in the previous year's same period, and we have introduced a total of 10,000 contracts. The monthly stock sales per contract has increased by a small number of customers, and the growth rate has declined compared to the previous quarter, but it was a significant achievement, with an increase of 4.8% in the same period last year. The graph on the right shows the monthly turnover rate for the last 12 months of the third quarter. The turnover rate at the end of the quarter was 0.40%, maintaining a low level of less than 1%. I would like to talk about the new demand situation for the first quarter. The new demand amount is already reflected in the sales volume of the first quarter, and there are multiple properties, such as those that are produced from the second quarter. However, the amount was increased by 34.7% in the previous year and became a high-quality achievement. Next, I will explain the KPI of Bill 1. Please see the 13th page. The graph on the left is the MRR of Bill 1. In August 2024, the performance continued to be 73.9% higher than the previous year. Next, let's look at the graph in the center. As the acquisition of new customers progresses smoothly, the number of paid contracts has increased by 55.4% in the previous year, and the monthly stock price increase per paid contract has increased by 12.1%. The graph on the right shows the monthly turnover rate of Bill 1 in the last 12 months, with a turnover rate of 0.33%, maintaining a very low level of turnover. The scale is still small, but these KPIs include Bill 1 production and Bill 1 expenses, which began service delivery in June. As you can see, the demand for invoices has decreased due to the invoice system. However, the situation is still very dangerous. As the number of new employees is increasing, the demand for new employees in the second half of the year is expected to exceed that of the first half of the year. As a result, we expect the MRR to grow even more than it is now. Next, I'd like to talk about the 8th business. Please take a look at page 14. As B2B and B2C services have grown steadily, sales have increased by 42.0% over the previous year. In terms of B2B services, Kaede IR Advisory Co., Ltd., which became a group company in June of 2024, has been employed by the company of the first quarter. After adjustment, the operating profit decreased by 129 million yen compared to the previous year due to the rise in sales. In addition, Kaede IR Advisory Group held a joint meeting with a group company, LogMe, in September 2024. Next, I would like to talk about the long-term earnings forecast for May 2025. First of all, I would like to talk about the mid-term financial policy, which was announced in July this year, but I will talk about the points again. Please see page 16. As for the sales volume, we aim to reach 22% to 27% as CAGR for the next three years. We aim to achieve a profit rate of 18% to 23% by May of 2027, while investing in high-value growth and growing at a faster rate than before. In addition, we believe that a long-term profit rate can achieve at least more than 30% when the business growth rate is on the market average. Please look at page 17 of the fiscal year of May of 2025. No changes have been made since the announcement in July. Excuse me. Thank you very much.