Slide 1: Presentation Material for FY2018 Financial Results
Presentation Material for FY2018 Financial Results July 12, 2019 Sansan, Inc.
Slide 2: Disclaimer
Disclaimer In preparing these materials, Sansan, Inc. (“the Company”) relies upon and assumes the accuracy and completeness of all available information. However, the Company make no representations or warranties of any kind, express or implied, about the completeness and accuracy. This presentation
Slide 3: Table of Contents
Table of Contents 1 Sansan Group Overview 2 FY2018 Financial Results 3 Growth Strategies 4 FY2019 Forecasts © Sansan, Inc. 2
Slide 4: Sansan Group Overview
Table of Contents 1 Sansan Group Overview 2 FY2018 Financial Results 3 Growth Strategies 4 FY2019 Forecasts © Sansan, Inc. 3
Slide 5: Turning Encounters into Innovation
11 Sansan Group Overview Mission Turning Encounters into Innovation Business Platform to Challenge the World Product × Technology × Challenges Challenges Data facing facing companies business people © Sansan, Inc. 4
Slide 6: The Unique Value of Business Cards
11 Sansan Group Overview The Unique Value of Business Cards • Business cards are exchanged when people meet for the first time • Business cards contain accurate and valuable information representing the holder, such as name, company or organization, job title, and contact information • Exchanging bu
Slide 7: Overview of Businesses and Services
11 Sansan Group Overview Overview of Businesses and Services Platforms to transform business and individual contact information into assets “Where Business Starts; “Business Social Networking Based on Business Begins with Business Card Business Card Information” Management” Eight is a personal busin
Slide 8: Features Characterizing the Business Platforms
11 Sansan Group Overview Features Characterizing the Business Platforms Establish a solid position as a business platform while diversifying medium- to long-term growth opportunities Business Platform Use in any situation, regardless High level of recognition of industry or occupation and brand powe
Slide 9: Competitive Edge: Unique Structure and Technology for Card Digitization
11 Sansan Group Overview Competitive Edge: Unique Structure and Technology that Enables Card Digitization with 99.9% Accuracy The establishment of a business card digitization operation structure unsurpassed by competitors Prompt and accurate digitization of a large volume of business cards ✓ Human:
Slide 10: Competitive Edge: Overwhelming Market Share and Solid Customer Base
11 Sansan Group Overview Competitive Edge: Overwhelming Market Share and Solid Customer Base Sansan, the contact management market pioneer, has acquired overwhelming market share and diverse set of customers Overwhelming Market Share and Recognition Solid Customer Base with more than 5,800 Subscript
Slide 11: Competitive Edge: Extremely Low Churn Rate Functions as High Entry Barrier
11 Sansan Group Overview Competitive Edge: Extremely Low Churn Rate Functions as High Entry Barrier The autonomous storage of information, which increases the database’s value, and the high switching cost strengthen its competitive advantage Last 12 Months Average of Monthly Churn Rate (1) for “Sans
Slide 12: FY2018 Financial Results
Table of Contents 1 Sansan Group Overview 2 FY2018 Financial Results 3 Growth Strategies 4 FY2019 Forecasts © Sansan, Inc. 11
Slide 13: Highlights
2 FY2018 Financial Results Highlights ・Consolidated sales increased by 39.3% as high growth continues Sansan Business growth 36.8%, Eight Business growth 102.8% ・ Consolidated operating loss reduced to 849 million yen due to Sansan Business growth and Eight Business monetization Reduced by 2,211 mil
Slide 14: Consolidated Financial Results
2 FY2018 Financial Results Consolidated Financial Results Strong net sales growth has continued, and operating loss has substantially decreased (in millions of yen) FY2017 FY2018 Full-year Full-year Full-year Consolidated Results Forecast YoY Results (announced on June 19) Results Net Sales 7,324 10
Slide 15: Consolidated Operating Profit and Cash Flows from Operating Activities
2 FY2018 Financial Results Consolidated Operating Profit and Cash Flows from Operating Activities Higher net sales and lower advertising expenditure help reduce operating loss Cash flow from operating activities turned positive Breakdown between Net Sales and Operating Profit Cash Flows from Operati
Slide 16: Business Performance
2 FY2018 Financial Results Business Performance Net Sales (1) Gross Profit and Gross Profit Margin (1) (2) ¥10,000,000 (in millions of yen) (in millions of yen) 89.5% Sansan Business Eight Business 10,206 ¥9,000,000 Gross Profit Gross Profit Margin 8,608 87.5% 566 ¥8,000,000 CAGR CAGR 84.3% 85.5% 51
Slide 17: Results by Segment: Sansan Business
2 FY2018 Financial Results Results by Segment: Sansan Business Operating profit margin rises thanks to continued strong net sales growth (in millions of yen) FY2017 FY2018 Sansan Business Full-year Results Full-year Results YoY Net Sales 7,044 9,639 +36.8% Operating Profit 1,437 2,909 +102.4% Operat
Slide 18: Results by Segment: Key Indicators for Sansan Business
2 FY2018 Financial Results Results by Segment: Key Indicators for Sansan Business Number of contracts and sales per contract are growing consistently, as are personnel numbers Number of Subscriptions and Monthly Sales per Subscription (1) Number of Employees in Sansan Business (subscriptions) (perso
Slide 19: Results by Segment: Eight Business
2 FY2018 Financial Results Results by Segment: Eight Business Net sales more than doubled thanks to strengthening monetization Operating loss reduced significantly (in millions of yen) FY2017 FY2018 Eight Business Full-year Results Full-year Results YoY Net Sales 279 566 +102.8% Operating Profit -2,
Slide 20: Results by Segment: Key Indicators for Eight Business
2 FY2018 Financial Results Results by Segment: Key Indicators for Eight Business Continued expansion of net sales and number of Eight users Net Sales in Eight Business (1) Number of Eight Users (2) (in millions of yen) (in millions) ¥700 566 ¥250 2.44 235 ¥600 2.14 ¥500 ¥200 ¥400 1.60 ¥150 1.27 ¥300
Slide 21: Results by Segment: Quarterly Business Performance
21 FY2018 Financial Results Results by Segment: Quarterly Business Performance Net Sales in Sansan Business (1) Net Sales in Eight Business (1) (in millions of yen) 3,050,000 (in millions of yen) 2,656 200,000 187 180,000 2,550,000 168 160,000 2,050,000 140,000 120,000 1,550,000 100,000 80,000 1,050
Slide 22: Growth Strategies
1 Table of Contents 1 Sansan Group Overview 2 FY2018 Financial Results 3 Growth Strategies 4 FY2019 Forecasts © Sansan, Inc. 21
Slide 23: Sansan Business: Large Potential to Expand Coverage in the Japanese Market
3 Growth Strategies Sansan Business: Large Potential for “Sansan” to Expand Coverage in the Japanese Market The number of users within current customers is limited, and there is room for 100 times more coverage expansion Company size Sansan Coverage Sansan Coverage (Company) (1) (Employee) (2) ＞ 1,0
Slide 24: Sansan Business: Market Opportunities to Support
3 Growth Strategies Sansan Business: Market Opportunities to Support The work-style reform and digital transformation is boosting the need for cloud-based contact management Work-style Reform and ICT-related Spending in Japan (1) Digital Transformation Market Size (2) SaaS Market Size in Japan (3) (
Slide 25: Sansan Business: Strategy for Continuous Growth in Net Sales
3 Growth Strategies Sansan Business: Strategy for Continuous Growth in Net Sales Achieve growth through an increase in both the number of subscriptions and sales per subscription Increase sales per subscription Increase the number of subscriptions More utilization by Upselling existing customers • E
Slide 26: Sansan Business: Improving the Value of Business Platform
3 Growth Strategies Sansan Business: Improving the Value of Business Platform Enhance data connection with various services indispensable in business SFA･CRM (1) Streamlinin g of MA (2) business Company and Contact industry information information (1) SFA: Sales force automation, CRM: Customer relat
Slide 27: Sansan Business: Roadmap for the Medium- to Long-term Strategy
3 Growth Strategies Sansan Business: Roadmap for the Medium- to Long-term Strategy Now In 5 years ➢ Expand recognition, establish brand Resources Advertising Promotion to small-to-mid size enterprises investment Resources ➢ Bolster recruitment, sales operations focusing on product value A workforce
Slide 28: Eight Business: Promotion of Monetization Measures
3 Growth Strategies Eight Business: Promotion of Monetization Measures Accelerate and strengthen the development of B2B services and aim to quickly monetize the entire Eight Business B2B Paid plan for corporations: Enables users to share their contacts with colleagues “Eight Premium for Corporations
Slide 29: FY2019 Forecasts
Table of Contents 1 Sansan Group Overview 2 FY2018 Financial Results 3 Growth Strategies 4 FY2019 Forecasts © Sansan, Inc. 28
Slide 30: Consolidated Financial Forecasts
41 FY2019 Forecasts Consolidated Financial Forecasts Net sales are expected to increase by 35.4%, and operating profit is expected (in millions of yen) FY2018 FY2019 Consolidated Forecasts Full-year Full-year YoY Results Forecasts Net Sales 10,206 13,816 +35.4% Operating Profit -849 724 － Operating
Slide 31: Appendix
Appendix © Sansan, Inc. 30
Slide 32: Basic Features of Sansan
Sansan Business Basic Features of “Sansan” “Sansan” offers contact management features to transform unutilized business cards into assets • Business card information not shared within the • Not aware of the value of business card Challenges facing office information companies • Insufficient internal
Slide 33: Enhanced Features of Sansan
Sansan Business Enhanced Features of “Sansan” Eliminates inconveniences experienced by all companies and business persons, to maximize the value of business encounters Business Begins with Business Card Management Business card management/utilization: Internal communication facilitation: “AI Contact
Slide 34: Basic Service Plan for Sansan
Sansan Business Basic Service Plan for “Sansan” Service price for “Sansan” is determined by the following four features (1) Recovery of costs 1 Initial cost ✓ 12 months’ license cost At the start of the (Initial costs) ✓ Cost for digitizing all existing business cards contract 2 Introduction ✓ Offer
Slide 35: Revenue Composition by Customer Size for Sansan
Sansan Business Revenue Composition by Customer Size for “Sansan” For the past five year, the growth has been especially boosted by large corporations bringing in high per-subscription revenue Revenue Composition by Customer Size for “Sansan” (1) vs. FY2013 Q4e Number of employees Approx. More than
Slide 36: Sansan Revenue Stack-up: Accumulation of Net Sales by Service-in Timing
Sansan Business “Sansan” Revenue Stack-up: Accumulation of Net Sales by Service-in Timing Continued achievement of negative churn (1) Sansan Revenue Stack-up: Accumulation of Net Sales by Service-in Timing (2) FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Q4e Q4e Q4e Q4e Q4e Q4e (1) Status where increas
Slide 37: Service Outline of Eight
Eight Business Service Outline of "Eight" SNS platform for business with the largest number of active users in Japan • Is not making the most out of business encounters • Desire to use business SNS without Challenges facing • Lacks sufficient access to business card becoming friends business people
Slide 38: Company Overview
1 Company Overview Company Name Sansan, Inc. Foundation June 11, 2007 Head office Aoyama Oval Building 13F, 5-52-2 Jingumae, Shibuya-ku, Tokyo Branch offices: Osaka, Nagoya Other locations Satellite offices: Kamiyama Lab (Tokushima), Sansan Innovation Lab (Kyoto), Nagaoka Lab, Sapporo Lab Subsidiari
Slide 39: About Employees
1 About Employees Number of Employees (1) Breakdown by Organization (2) (persons) 549 Sansan Division: Others Sales, SD, CS etc. 402 305 236 DSOC 549 employees 161 Sansan Division: Eight Development Division May 2015 '15/5 May 2016 '16/5 May 2017 '17/5 May 2018 '18/5 May 2019 '19/5 Sansan Division:
Slide 40: Sansan
Sansan