Sansan, Inc.

It is now time to begin the second half of the Sansan Co., Ltd. Settlement Explanation in May 2025. I would like to introduce today's speaker. He is Terada, CEO and CPO of Sansan Co., Ltd. He is Hashimoto, CEO and CFO of Sansan Co., Ltd. Next, I would like to introduce today's material. We will share the screen on Zoom, but if you participate on the phone, please see the materials on our website. Next, about today's time schedule, I will give a presentation on the account balance from the temple for about 10 minutes. After that, it is time to ask questions until 11 o'clock. Now, I would like to explain from the temple.

Thank you for joining us today. I'm the CEO, Terada. Today, I'd like to talk about the results of the second half of the fiscal year, May, 2020. Please take a look at page 4. This is the highlight of the second half of the fiscal year, May, 2025. The first point is that the sales volume increased by 27.5% in the previous year, and the operating profit after adjustment increased by 58.4% in the previous year, and the business competition that is popular has progressed smoothly. Second, Sales DX Service 3.3 has accelerated the increase in stock sales by the effect of human resources adoption and subsequent human resources regulation implemented in the previous year, and the sales volume has increased by 15.8% in the previous year. Third, in Invoice Management Service Bill 1, the sales volume has increased by 72.1% in the previous year, and the growth has continued. In addition, the increase in orders at the base increased the pace of the MRR increase. In the second half of the year, the results of all companies in the last three months were as shown on page 5. The sales volume increased by 27.7% in the previous year. The sales net profit increased by 2.1 points in the previous year, mainly due to the improvement of the data operation and the increase in the profit rate of Bill 1. After the adjustment, the operating profit increased by 63.6% in the previous year due to the improvement in the growth of the sales volume and the improvement in the net profit rate. With the increase in operating profits, the net profit has increased by 198.3% in the previous year. In addition, the net profit of the parent-company shareholder has increased by 394.1% in the previous year due to the increase in the net profit of 4.6 million yen in the investment, which is the sales revenue of the company. Please see the 6th page. I will explain the increase in operating profits after adjustment. As a result of the growth strategy, the cost of human resources increased by ¥94,900,000 and the advertising cost increased by ¥197,000,000 in the previous year. In addition, due to the temporary cost of double rents and temporary expenses related to transfer, the cost of land rents and transfer-related expenses increased by ¥45,500,000 in the previous year. On the other hand, in addition to the rapid growth in sales, the sales-to-revenue ratio has decreased, resulting in a 1.3-point improvement in the profit ratio of 24,100,000 yen, which is the same as the previous year. Next, please look at page 7 of the external account of each segment. The 33-bill-1 business has grown rapidly in sales, and the sales-to-revenue ratio has increased. The 8th business has been greatly increased, and the second half of the adjustment business profit has been reduced to black. From page 8, I will explain the achievements of each segment. First of all, it is about the achievements of the 33ビルワン business. The sales volume has increased by 26.1% in the previous year. If you look at it by service, 33 has accelerated growth rate and increased by 16.1% in the previous year. In addition, Bill 1 continued to grow by 63.4% more. After adjustment, the sales volume increased by 21.7% with the increase in the sales volume of the previous year due to the strengthening of marketing activities and the adoption of business personnel. The number of contracts of Contract 1, including contract database, including the previous year's sales volume, has grown steadily with an increase of 286 of 93 in the previous year's sales volume. The service of the group company Creative Survey is also growing steadily. I will explain the KPI of 33. Please see the Q page. The graph on the left shows the stock price of 33, which is 16.0% higher than the previous year. The graph in the center shows the contract number and the monthly stock price per contract. As a result of a relatively small number of contracts that have progressed smoothly in the training process of the sales staff that have been involved in the previous period, the number of contracts increased by 110.5% in the previous year, and the monthly sales value per contract increased by 4.7% in the previous year. The graph on the right shows the average monthly contract rate for the last 12 months of 33, but the contract rate at the end of the second half was 0.39%, maintaining a low level of less than 1%. In addition, the number of contracts in the second quarter seems to have decreased significantly compared to the number of contracts in the first quarter, but this is mainly due to the influence of the season. Newer contracts tend to become stronger in the second quarter and the fourth quarter of the year, but the number of contracts has increased significantly in the first quarter due to the increase in contracts in the fourth quarter. Usually, there is a time lag of 1 to 2 months until new contracts are actually sold and the number of contracts is reflected. As a reference, if we talk about the situation of new orders in the second quarter, the amount is 56.2% more than the previous year, which is the greatest achievement in the past year based on the quarter. Therefore, it is believed that we can expect good business growth even after the third quarter. Next, I will explain the KPI of Bill 1. Please see page 10. The graph on the left is the MRR of Bill 1, and the results of November 2024 were 57.5% higher than the previous year. In recent years, in comparison with three months ago, the MRR's net increase has continued, but in November, the net increase was 75 million yen, and it has increased. Next, let's look at the graph in the center. As a result of the progress in the acquisition of new contracts, the number of paid contracts increased 43.7% in the previous year, and the monthly stock sales per paid contract increased by 9.8%. The graph on the right shows the monthly contract rate for the last 12 months, and the contract rate remained very low at 0.36%. The scale is still small, but these KPIs include the results of Bill 1 expenses and Bill 1 issuance. Bill 1 expenses started from June of 2024, and they have been steadily increasing every month to acquire dozens of new contracts. We are also aiming to make further decisions. Bill 1 issuance, which started from September of 2024, will be included in sales from the third quarter onwards. As you can see, since the start of the invoice system, the number of new orders has been decreasing. However, as the number of new orders has increased significantly in the previous year, the number of new orders in the second quarter has increased by 31% compared to the first quarter. Also, the number of new orders increased by 8.3% in the previous year. Next, I would like to explain the 8 business. Please see page 11. The B2C service has continued to have significant results. In addition, B2B services have improved significantly thanks to the success of eight teams, as well as large-scale business events. As a result, sales have increased by 41.2% and adjusted sales have increased by ¥14,100,000 in the same year. Next, I would like to talk about the long-term earnings forecast for May of 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 13. Regarding the sales value, we will aim for 22% to 27% as a CAGR for the next three years. After adjustment, we will aim for a profit rate of 18% to 23% in May of 2027, while investing in the growth of sales value, while growing at a speed higher than before. Also, the long-term interest rate is thought to be able to achieve at least 30% when the business growth rate becomes the market average. Please see page 14 for the long-term earnings forecast for May 2025. This is also not changed from what was announced in July. Thank you very much.