Sansan, Inc. · TSE:4443
Sansan — Q4 2019 Earnings Presentation
53 slides from Sansan's earnings presentation, Jul 14, 2020
Slide 1: Presentation Material for FY2019 Q4
Presentation Material for FY2019 Q4 Sansan, Inc. July 14, 2020
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 makes no representations or warranties of any kind, expresses or implies, about the completeness and accuracy. This presentat
Slide 3: Table of Contents
Table of Contents 1 Regarding Novel Coronavirus (COVID-19) 2 Consolidated Financial Results for FY2019 3 Growth Strategies 4 Full-year Forecasts for FY2020 Appendix (Consolidated Financial Results for FY2019 Q4 (three months) / Sansan Group Overview / Sansan Business / Eight Business) © Sansan, Inc
Slide 4: Regarding Novel Coronavirus (COVID-19)
Table of Contents 1 Regarding Novel Coronavirus (COVID-19) 2 Consolidated Financial Results for FY2019 3 Growth Strategies 4 Full-year Forecasts for FY2020 Appendix (Consolidated Financial Results for FY2019 Q4 (three months) / Sansan Group Overview / Sansan Business / Eight Business) © Sansan, Inc
Slide 5: Impact of COVID-19 Outbreak and Main Initiatives
1 Regarding Novel Coronavirus (COVID-19) Impact of COVID-19 Outbreak and Main Initiatives Despite a certain degree of negative impact, the effect on financial results for the fiscal year ended May 31, 2020, was within the expected range. It is assumed that the uncertain business environment will con
Slide 6: Year-on-year comparison of weekly business cards digitized
1 Regarding Novel Coronavirus (COVID-19) Year-on-year comparison of weekly numbers of business cards digitized (March through June 2020) Despite the decrease in the number of business cards digitized from the time COVID-19 infections began to spread, the number recovered following the lifting of the
Slide 7: Consolidated Financial Results for FY2019
Table of Contents 1 Regarding Novel Coronavirus (COVID-19) 2 Consolidated Financial Results for FY2019 3 Growth Strategies 4 Full-year Forecasts for FY2020 Appendix (Consolidated Financial Results for FY2019 Q4 (three months) / Sansan Group Overview / Sansan Business / Eight Business) © Sansan, Inc
Slide 8: Highlights of Full-year Results
2 Consolidated Financial Results for FY2019 Highlights of Full-year Results - Net Sales +30.9%, High growth has continued Sansan Business +27.4%, Eight Business +90.3% - Achievement of profit in multi-step profit or loss Operating profit increased by 1,607 million yen year-on-year to 757 million yen
Slide 9: Overview of Consolidated Financial Results
2 Consolidated Financial Results for FY2019 Overview of Consolidated Financial Results Net Sales +30.9%, High growth has continued Achievement of profit in multi-step profit or loss (millions of yen) FY2018 FY2019 Consolidated Results Full-year Results Full-year Results YoY Net Sales 10,206 13,362 +
Slide 10: Results by Segment
2 Consolidated Financial Results for FY2019 Results by Segment Net sales and operating profit (decreased loss) increased in both Sansan and Eight Businesses (millions of yen) FY2018 FY2019 Net Sales Full-year Results Full-year Results YoY Consolidated 10,206 13,362 +30.9% Sansan Business 9,639 12,28
Slide 11: Growth Strategies
Table of Contents 1 Regarding Novel Coronavirus (COVID-19) 2 Consolidated Financial Results for FY2019 3 Growth Strategies 4 Full-year Forecasts for FY2020 Appendix (Consolidated Financial Results for FY2019 Q4 (three months) / Sansan Group Overview / Sansan Business / Eight Business) © Sansan, Inc
Slide 12: Our Mission and the Surrounding Business Environment
3 Growth Strategies Our Mission and the Surrounding Business Environment Confront the business “encounters” and work to gain access to a variety of adjacent business opportunities In post-COVID-19 society, Digital Transformation (DX) will rapidly accelerate Mission Our world is built on encounters;
Slide 13: Digital Transformation and Service Development
3 Growth Strategies Digital Transformation and Service Development Required first to promote DX is digitization of analog information Develop a service to digitize and utilize all types of analog business information, such as business cards Analog information Business card Billing Contract B2B cloud
Slide 14: Virtual Cards to Realize New Work Styles
3 Growth Strategies “Virtual Cards” to Realize New Work Styles Launching “Virtual Cards” function in June 2020 to realize new work styles Virtual Cards © Sansan, Inc 14
Slide 15: Business Strategy Sansan Plus
3 Growth Strategies Business Strategy “Sansan Plus” By connecting various functions to “Sansan” with business card management function and customer information as entry points Promoting data utilization, aiming to increase its value as a business platform In-house Developed Additional Functions Exte
Slide 16: Bill One Billing Digitization and Online Receipt Service
3 Growth Strategies “Bill One” Billing Digitization and Online Receipt Service A service that can convert paper and PDF billings into data with 99.9% accuracy and receive them online In the COVID-19 pandemic, contributing to remote working/BCP (1) problem solving, adding impetus to corporate growth
Slide 17: Contract One Contract Digitization Solution
3 Growth Strategies “Contract One” Contract Digitization Solution A function that digitizes paper and PDF contracts and organizes the data required for management Planning to provide “Contract One” technology to Bengo4.com, Inc., “CloudSign AI” Contract digitization solution 1. Agreement signed by “
Slide 18: Number of Subscriptions and Sales per Subscription
3 Growth Strategies Number of Subscriptions and Sales per Subscription 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 • Expand sale
Slide 19: Potential Market Size in Japan (TAM) for Sansan Business
3 Growth Strategies Potential Market Size in Japan (TAM) for Sansan Business The number of users within current customers is limited, and there is room for tens of times more coverage expansion Company size “Sansan” Coverage “Sansan” Coverage （Number of employees） (Company) (1) (Employee) (1) ＞ 1,00
Slide 20: Full-year Forecasts for FY2020
Table of Contents 1 Regarding Novel Coronavirus (COVID-19) 2 Consolidated Financial Results for FY2019 3 Growth Strategies 4 Full-year Forecasts for FY2020 Appendix (Consolidated Financial Results for FY2019 Q4 (three months) / Sansan Group Overview / Sansan Business / Eight Business) © Sansan, Inc
Slide 21: Consolidated Financial Forecasts
4 Full-year Forecasts for FY2020 Consolidated Financial Forecasts In FY2020, growth rate temporarily expected to slow down due to impact of COVID-19 outbreak Working to enhance investment to accelerate growth rate again, aiming for sales growth of 30% or more in FY2021 FY2019 FY2020 (millions of yen
Slide 22: Appendix
Appendix © Sansan, Inc
Slide 23: Consolidated Financial Results for FY2019 Q4 (three months)
Consolidated Financial Results for FY2019 Q4 (three months) © Sansan, Inc
Slide 24: Overview of Consolidated Financial Results
Consolidated Financial Results for FY2019 Q4 (three months) Overview of Consolidated Financial Results Both net sales and profits increased year on year (millions of yen) FY2018 FY2019 (FYI) FY2019 Consolidated Results Q4 Results Q4 Results YoY Full-year Results YoY Net Sales 2,844 3,690 +29.8% 13,3
Slide 25: Factors Contributing to Changes in Consolidated Operating Profit
Consolidated Financial Results for FY2019 Q4 (three months) Factors Contributing to Changes in Consolidated Operating Profit Operating income in the black due to sales growth and the decrease in advertising costs associated with the suspension of business events Status of Consolidated Net Sales/Oper
Slide 26: (Reference) Overview of Free Cash Flow
Consolidated Financial Results for FY2019 Q4 (three months) (Reference) Overview of Free Cash Flow Overview of Free Cash Flow (Reference) Consolidated Monthly Operating Profit (3) (millions of yen) (millions of yen) Cash Flows from Operating Activities Adjusted Cash Flows from Investing Activities (
Slide 27: Results by Segments
Consolidated Financial Results for FY2019 Q4 (three months) Results by Segments Net sales and operating profit (decreased loss) increased in both Sansan and Eight Businesses (millions of yen) FY2018 FY2019 (FYI) FY2019 Full-year Net Sales Q4 Results Q4 Results YoY Results YoY Consolidated 2,844 3,69
Slide 28: Sansan Business Overview
Consolidated Financial Results for FY2019 Q4 (three months) Sansan Business Overview Net sales increased 26.2% compared with same period in previous fiscal year Operating profit margin increased due to continued growth in net sales and cost controls, such as of advertising expenses (millions of yen)
Slide 29: Sansan Business: Sansan Sales/Recurring Net Sales
Consolidated Financial Results for FY2019 Q4 (three months) Sansan Business：”Sansan” Sales/Recurring Net Sales Recurring Net Sales increased 29.6% compared with corresponding period in previous fiscal year Recurring Net Sales ratio remained high at 91.3% ”Sansan” Sales/Recurring Net Sales (1) (milli
Slide 30: Number of Sansan Subscriptions, Monthly Sales and Employees
Consolidated Financial Results for FY2019 Q4 (three months) Sansan Business: Number of “Sansan” Subscriptions, Monthly Sales and Number of Employees Number of subscriptions increased 16.0% and monthly net sales per subscription increased 3.2% compared with same period in previous fiscal year Recruit
Slide 31: Last 12 Months Average of Monthly Churn Rate
Consolidated Financial Results for FY2019 Q4 (three months) Sansan Business: Last 12 Months Average of Monthly Churn Rate Average churn rate over the last 12 months improved by 0.08 points compared to the same period last year, and remained at a low level Last 12 Months Average of Monthly Churn Rate
Slide 32: Sansan Revenue Composition by Customer Size
Consolidated Financial Results for FY2019 Q4 (three months) Sansan Business: “Sansan” Revenue Composition by Customer Size Revenue ratio from larger customers with large sales per subscription continues to rise “Sansan” Revenue Composition by Customer Size (1) Company size YoY (Number of Employees)
Slide 33: Eight Business Overview
Consolidated Financial Results for FY2019 Q4 (three months) Eight Business Overview Net sales continued to show year-on-year growth due to B2B services (paid services for companies) (millions of yen) FY2018 FY2019 (FYI) FY2019 Eight Business Q4 Results Q4 Results YoY Full-year Results YoY Net Sales
Slide 34: Eight Business: Net Sales/Eight Users
Consolidated Financial Results for FY2019 Q4 (three months) Eight Business: Net Sales/“Eight” Users Steady increase in “Eight” users Net Sales (1) Number of “Eight” Users (2) (millions of yen) B2C services B2B services (millions of user) 2.70 337 2.65 2.512.58 2.44 2.29 2.35 ¥3 2.14 2.21 2.03 251 25
Slide 35: Sansan Group Overview
Sansan Group Overview © Sansan, Inc
Slide 36: Turning Encounters into Innovation
1 Sansan Group Overview Mission Turning Encounters into Innovation A Business Platform to Challenge the World Product × Technology × Challenges Data Challenges facing facing companies business people © Sansan, Inc 36
Slide 37: Overview of Businesses and Services
1 Sansan Group Overview Overview of Businesses and Services Platforms to transform business and individual contact information into assets Effortless Organization. Business Social Networking Based on Seamlessly Simple Business Card Information The No.1 share in B2B cloud-based business card manageme
Slide 38: Features Characterizing the Business Platforms
1 Sansan Group Overview Features Characterizing the Business Platforms Establish a solid position as a business platform while diversifying medium- to long-term growth opportunities Use in any situation, regardless of industry or occupation Business Platform High level of recognition and brand power
Slide 39: Competitive Edge: Card Digitization with 99.9% Accuracy
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 Automatic a
Slide 40: Competitive Edge: Overwhelming Market Share and Solid Customer Base
Sansan Group Overview Competitive Edge: Overwhelming Market Share and Solid Customer Base Sansan, the B2B cloud-based business card management market pioneer, has acquired overwhelming market share and diverse set of customers Overwhelming Market Share and Recognition Solid Customer Base with more t
Slide 41: Sansan Business
Sansan Business © Sansan, Inc
Slide 42: Basic Features of Sansan
Sansan Business Basic Features of “Sansan” “Sansan” offers “business card management” features to transform unutilized business cards into assets • Business card information not shared within the office • Not aware of the value of business card Challenges facing information companies • Insufficient
Slide 43: Sansan Business: Business Strategy Sansan Plus
Sansan Business Sansan Business：Business Strategy “Sansan Plus” Through these three concepts, we will maximize the value of “encounters” accumulated inside companies and solve business issues Package of optional functions Utilize the “Sansan” services to Consulting to integrate data usable within ”S
Slide 44: Sansan Plus APP: Optional Functions
Sansan Business Sansan Plus APP : Optional Functions that can be Added to “Sansan” “Risk Intelligence powered by Refinitiv” “Survey Tool powered by CREATIVE SURVEY” Automation of Creation of List API linkage Seminar Visitor Information “Sansan” for Business Card anti-social forces check confirmation
Slide 45: Tailwind of Market Environment
Sansan Business Tailwind of Market Environment The work-style reform and digital transformation is boosting the need for B2B cloud- based business card management Work-style Reform and ICT-related Spending in Japan (1) Digital Transformation Market Size (2) SaaS Market Size in Japan (3) (billions of
Slide 46: Service Plans for Sansan
Sansan Business Service Plans for “Sansan” Providing basic company-wide use plan A. Basic company-wide use plan B. Previous plan (ID subscription) Timing of payment 1 Cost according to number of 12 months’ license cost contract IDs At the start of Initial cost Cost for digitizing existing Data conve
Slide 47: Sansan Revenue Stack-up 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) FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 Q4e Q4e Q4e Q4e Q4e Q4e (1) Status where incre
Slide 48: Eight Business
Eight Business © Sansan, Inc
Slide 49: 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 becoming friends business people • Lacks sufficient access to business card
Slide 50: Strengthening and Promotion of Monetization Plans
Eight Business Strengthening and Promotion of Monetization Plans Accelerate and strengthen the development of paid plans for B2B B2B Paid plan for corporations: Enables users to share their contacts with colleagues Fixed monthly fee “Eight Company Premium” (Annual subscription) Targeting small compa
Slide 51: About Employees
About Employees Number of Employees (1) Breakdown by Organization (2) (persons) 713 Sansan Division: Sales, Others SD, CS etc. 549 402 DSOC 713 305 employees 236 Eight Division Sansan Division: Development Sansan Division: Others May 2016 '05/5 May 2017 '05/5 May 2018 '05/5 May 2019 '05/5 May. 2019
Slide 52: Company Overview
1 Company Overview (1) Company Name Sansan, Inc. Foundation June 11, 2007 Head Office Aoyama Oval Building 13F, 5-52-2 Jingumae, Shibuya-ku, Tokyo Other locations Branch offices: Osaka, Nagoya, Fukuoka Satellite offices: Tokushima, Kyoto, Niigata, Hokkaido Subsidiaries Sansan Global PTE. LTD. (Singa
Slide 53: Sansan
Sansan