Sansan, Inc.

Thank you for joining our earnings presentation today. I am Hashimoto, the CFO of Sansan, Inc. First, I will explain our full-year results for fiscal year 2025. I will then discuss the updated medium-term financial policy for fiscal year 2026 to fiscal year 2028, and our full-year forecast for fiscal year 2026. After that, Tirada will explain our growth strategy. Please turn to page 4. I will discuss the highlights of our full year results for fiscal year 2025. First, net sales increased by 24.4% year-over-year and came in within the range of the earnings forecast that we revised upward in Q3. Second, adjusted operating profit increased by 137.0% year-over-year while we made sufficient growth investments, reaching a record high. Third, our accounting AX solution. Bill 1 continued to deliver high growth, with net sales up 39.7% year over year. I will explain our company-wide financial results. Please turn to page 5. Net sales grew steadily, up 24.4% year over year. Gross profit margin improved by 1.3 percentage points year over year, mainly due to improved profitability at Bill 1, following improvements in digitization operations. Adjusted operating profit increased substantially, up 137.0% year over year, driven by net sales growth and a decline in the SG&A ratio, reaching a record high. Ordinary profit and other line-item profits also increased substantially against the backdrop of this profit growth. Profit attributable to owners of parent increased significantly year over year, partly because we recorded an extraordinary loss on the sale of shares in the previous fiscal year, while in the current fiscal year we recorded a gain on the sale of shares of LogMe, Inc., a consolidated subsidiary, as extraordinary income. I will now explain the details of adjusted operating profit. Please turn to page six. First, gross profit increased as net sales grew steadily, and the cost of sales ratio decreased by 1.3 percentage points. Among SG&A expenses, advertising expenses increased by approximately ¥1,663 million year-over-year as we strengthened promotional activities such as TV commercials, and the ratio of advertising expenses to net sales rose by 0.8 percentage points. Meanwhile, personnel expenses increased by approximately ¥2,539 million year-over-year. but the ratio of personnel expenses to net sales declined by 2.7 percentage points. As a result, the adjusted SG and A to sales ratio decreased by 6.2 percentage points year over year, and adjusted operating profit increased substantially while we continued to make the investments necessary for growth. Next, please turn to page seven for an overview by segment. Net sales for the Sansan Bill 1 business continued to grow steadily, and adjusted operating profit increased substantially. Net sales for the 8 business also continued to grow strongly, and adjusted operating profit increased significantly. Next, starting on page 8, I will explain the details by segment. Net sales for the Sansan Bill 1 business increased by 24.0% year-over-year. By solution, Sansan grew steadily, up 16.2% year-over-year, and Bill 1 continued its high growth, up 39.7%. Inc. Inc. Inc. Inc. Inc. By solution, Bill One's profitability improved significantly against the backdrop of strong net sales growth. Even while making growth investments, the Bill One loss narrowed by approximately 3.7 billion yen year over year to approximately 1.6 billion yen. On a monthly basis, profitability continued to improve steadily, with some months in quarter four profitable, as we also the case in quarter three. In addition, adjusted operating profit for Sanson on a standalone basis increased by 19.1% year-over-year. I will explain the KPIs for Sanson on page 9. Recurring sales on the left side continued to grow steadily. up 13.7% year-over-year. The number of subscriptions shown in the center graph increased by 14.0% year-over-year, while monthly recurring sales per subscription decreased by 1.0% year-over-year. In fiscal year 2025, we steadily acquired subscriptions throughout the year, particularly among small and medium-sized enterprises. This customer mix made it difficult to increase monthly recurring sales per subscription, but quarterly net additions reached their highest level since the launch of the solution, expanding our customer base. The graph on the right shows the average monthly churn rate over the last 12 months. In fiscal year 2025, it was 0.55%, remaining stable at a low level of less than 1%. Next, I will explain the KPIs for Bill 1 on page 10. MRR, shown in the graph on the left, increased by 34.9% year-over-year to approximately 1,231 million yen, maintaining a high growth rate. The number of paid subscriptions shown in the center grew strongly, up 31.9% year-over-year, while monthly recurring sales per paid subscription increased by 2.2%. The graph on the right shows the average monthly churn rate over the last 12 months, which remained low at 0.34%. Next, I will explain the eight business. Please turn to page 11. Net sales from B2C services increased by 10.8% year over year. Net sales from B2B services increased by 35.0% year-over-year, driven by strong growth in business events and recruiting-related services. As a result, net sales for the eight business increased by 33.0% year-over-year. Adjusted operating profit increased substantially, up 273.2% year-over-year, against the backdrop of strong net sales growth. following the share sale, LogMe, Inc., formerly a consolidated subsidiary, was excluded from the scope of consolidation in April 2026.

Next, I will explain our new medium-term financial policy.

Please turn to page 13. In our financial results announcement for fiscal year 2023, we announced a medium-term financial policy covering the three-year period from fiscal year 2024 to fiscal year 2026. Measured against that policy, our performance through fiscal year 2025 has remained on track. We have made progress in achieving both net sales and profit growth, and our earnings structure has steadily improved, as demonstrated by an adjusted operating profit margin of 15.7% in fiscal year 2025. Looking ahead over the medium term, we recognize that business opportunities for our services are expanding further against the backdrop of the evolution of generative AI. In this environment, our policy is to continue pursuing both net sales growth and profit growth through investment in high growth businesses and to enhance corporate value over the medium to long term. Based on this approach, we have formulated a new medium term financial policy covering the three years from fiscal year 2026 to fiscal year 2028. Specifically, our policy is to achieve a net sales CAGR of 16% to 20% for the three years through fiscal year 2028 and an adjusted operating profit margin of 25% to 30% in fiscal year 2028. I will explain the status of free cash flow. Please turn to page 14. Free cash flow has continued to expand in line with our business growth to date. In fiscal year 2025, free cash flow expanded to approximately 10 billion yen, and the FCF margin rose to 18.7%. This was due not only to net sales growth, but also to steady progress in improving profitability across the entire business portfolio. Under the newly disclosed medium-term financial policy through fiscal year 2028, we expect our ability to generate free cash flow to expand further going forward. I will explain our basic policy on medium-term capital allocation based on factors such as free cash flow. Please turn to page 15. With our cash-generating capacity expanding, we plan to continuously balance growth investment and shareholder returns while maintaining the financial flexibility to respond quickly to growth opportunities. First, our growth investment in existing and new businesses will include sales and marketing, AI and R&D, and human resources investments such as hiring and development. In addition, we plan to allocate capital to strategic M&A as an important means of advancing our growth strategy. Specifically, we will evaluate and execute M&A opportunities with agility in areas where direct synergies with existing businesses can be expected, peripheral areas where the strengths of existing businesses can be leveraged, and new areas with high future growth potential. Regarding shareholder returns, we will continue to position the acquisition of Treasury stock as a central tool while considering the optimal combination with dividends. Our policy is to implement the acquisition of Treasury stock flexibly, taking into account stock price levels, market environment, financial condition, and other factors in a comprehensive manner. For dividends, we aim to deliver consistent increase in line with profit growth. I will explain our full-year earnings forecast for fiscal year 2026. Please turn to page 16. We expect net sales to increase by 18.5% to 21.5% year-over-year. By solution, we expect net sales for SanSan to increase by 10% to 12% year-over-year and Bill 1 to increase by 28% to 32%. We also expect net sales for the eight business to increase by 23% to 27% year-over-year. For adjusted operating profit, we expect an increase of 51.2% to 74.4% year-over-year, owing to factors such as Bill One's expected achievement of full-year profitability, and we expect the adjusted operating profit margin to be 20.0% to 22.5%. from fiscal year 2026, while adjusted operating profit will remain the profit indicator we emphasize. We have changed our disclosure policy to also provide forecasts for reported operating profit and profit, and EPS. In particular, we expect EPS to increase by 23.9% to 51.2% year over year. I will explain the outlook for major costs. Please turn to page 17. We expect to continue allocating growth investment mainly to personnel expenses and advertising expenses. With net sales expected to continue growing steadily and productivity improving through the use of generative AI and other initiatives, we expect the ratio of each cost to net sales to decline from the previous fiscal year. For personnel expenses, we plan to hire approximately 470 employees, including both new graduates and mid-career hires, and expect an increase of around 12% year-over-year. For advertising expenses, we expect an increase of around 8% year-over-year. To conclude my part of the presentation, I will discuss the results and forecast for shareholder returns. Please turn to page 18. As announced on May 19, 2026, we decided to conduct share buybacks and initiate dividend payments. This is because, as a result of achieving stable and continuous business growth to date, we are in a phase in which profit growth is structurally accelerating. We determined that, even after conducting share buybacks and paying dividends as a means of returning profits to shareholders, we would remain fully capable of maintaining stable business operations and executing growth investments going forward. First, we have already repurchased approximately 1.33 million shares for approximately 2.0 billion yen from the end of fiscal year 2025 to the beginning of fiscal year 2026. For dividends, we set the year-end dividend for fiscal year 2025 at 2.5 yen per share. For fiscal year 2026, we plan to introduce an interim dividend of 2.5 yen per share and pay a year-end dividend of 2.5 yen per share for an annual dividend of 5 yen per share. Going forward, we will enhance shareholder returns through flexible acquisitions of Treasury stock and continuous dividend increases in line with profit growth. That concludes my presentation. I will now hand over to Tarada. I am Tarada, the CEO. I will explain our medium to long-term growth strategy. Please turn to page 20. It has been some time since the phrase, SaaS is dead, began to be widely discussed in the capital markets. However, as I have explained previously, I believe the value of our services will instead increase in the generative AI era. Since May this year, we have been airing a corporate brand commercial that symbolically expresses this idea. So please first watch this.