Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.
January 13, 2022
Financial Results for FY2021 Q2 | |
Company name: | Sansan, Inc. |
Listing: | Tokyo Stock Exchange |
Securities code: | 4443 |
URL: | https://www.corp-sansan.com/ |
Representative: | Chikahiro Terada, Representative Director & CEO |
Inquiries: | Muneyuki Hashimoto, Director, Executive Officer, CFO |
TEL: | +81-3-6758-0033 |
Scheduled date to file quarterly securities report:
Scheduled date to commence dividend payment:
Preparation of supplementary materials on financial results:
Holding of financial results meeting:
(Millions of yen with fractional amounts rounded down, unless otherwise noted)
1. Consolidated financial results for the first six months of the fiscal year ending May 31, 2022 (from June 1, 2021 to November 30, 2021)
(1) Consolidated operating results (cumulative) | (Percentages indicate year-on-year changes.) | ||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||
owners of parent | |||||||||||
Six months ended | Millions of yen | % | Millions of yen | % | Millions of yen | % | Millions of yen | % | |||
November 30, 2021 | 9,577 | 25.4 | (133) | - | 643 | 41.7 | 573 | 47.8 | |||
November 30, 2020 | 7,636 | 21.3 | 686 | 525.4 | 454 | - | 388 | - | |||
Note: Comprehensive income Six months ended November 30, 2021: | ¥(725) million[-%] | ||||||||||
Six months ended November 30, 2020: | ¥392 million | [-%] | |||||||||
Basic earnings per | Diluted earnings | ||||||||||
share | per share | ||||||||||
Six months ended | Yen | Yen | |||||||||
November 30, 2021 | 4.60 | 4.52 | |||||||||
November 30, 2020 | 3.12 | 3.08 | |||||||||
Note: The Company implemented a stock split of common shares at a ratio of 4-for-1 on December 1, 2021. Therefore, basic earnings per share and diluted earnings per share are calculated on the assumption that said splitting of shares had been made at the beginning of the previous fiscal year.
(2) Consolidated financial position
Total assets | Net assets | Equity-to-asset ratio | |
As of | Millions of yen | Millions of yen | % |
November 30, 2021 | 22,284 | 12,037 | 53.5 |
May 31, 2021 | 24,310 | 12,584 | 51.5 |
Reference: Equity | |||
As of November 30, 2021: | ¥11,918 million | ||
As of May 31, 2021: | ¥12,516 million |
2. Cash dividends
Annual dividends | |||||
First quarter-end | Second quarter-end | Third quarter-end | Fiscal year-end | Total | |
Yen | Yen | Yen | Yen | Yen | |
Fiscal year ended | - | 0.00 | - | 0.00 | 0.00 |
May 31, 2021 | |||||
Fiscal year ending | - | 0.00 | |||
May 31, 2022 | |||||
Fiscal year ending | |||||
May 31, 2022 | - | 0.00 | 0.00 | ||
(Forecast) | |||||
Note: Revisions to the forecast of cash dividends most recently announced: None
3. Consolidated earnings forecasts for the fiscal year ending May 31, 2022 (from June 1, 2021 to May 31, 2022)
(Percentages indicate year-on-year changes.)
Profit attributable to | Basic | |||||||||
Net sales | Operating profit | Ordinary profit | earnings per | |||||||
owners of parent | ||||||||||
share | ||||||||||
Millions of | % | Millions of | % | Millions of | % | Millions of | % | Yen | ||
yen | yen | yen | yen | |||||||
Fiscal year ending | 20,230 | 25.0 | 450 | (38.9) | ||||||
to | to | to | to | - | - | - | - | - | ||
May 31, 2022 | ||||||||||
20,716 | 28.0 | 800 | 8.6 | |||||||
Notes: 1. Revisions to the earnings forecasts most recently announced: None
2. Although the Company is expecting to record a surplus in both ordinary profit and profit attributable to owners of parent, it is difficult to make a precise forecast. Accordingly, the Company will refrain from disclosing a concrete forecast at this point in time.
* Notes
- Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope of consolidation): None
- Application of specific accounting for preparing the quarterly consolidated financial statements: None
- Changes in accounting policies, changes in accounting estimates, and restatement
- Changes in accounting policies due to revisions to accounting standards and other regulations: Yes
- Changes in accounting policies due to other reasons: None
- Changes in accounting estimates: None
- Restatement: None
- Number of issued shares (Common shares)
- Total number of issued shares at the end of the period (including treasury shares)
As of November 30, 2021 | 124,861,316 shares |
As of May 31, 2021 | 124,734,580 shares |
b. Number of treasury shares at the end of the period
As of November 30, 2021 | 672 shares |
As of May 31, 2021 | 160 shares |
c. Average number of outstanding shares during the period
For the six months ended November 30, 2021 | 124,775,466 shares |
For the six months ended November 30, 2020 | 124,555,367 shares |
Note: The Company implemented a stock split of common shares at a ratio of 4-for-1 on December 1, 2021. Therefore, total number of issued shares at the end of the period, number of treasury shares at the end of the period, and average number of outstanding shares during the period are calculated on the assumption that said splitting of shares had been made at the beginning of the previous fiscal year.
- Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
-
Proper use of earnings forecasts, and other special matters
Forward-looking statements, including the consolidated forecasts stated in these materials, are based on information currently available to the Company and certain assumptions deemed reasonable. Results may differ materially from the consolidated forecasts due to various factors.
Sansan, | Inc. (TSE 4443) | |
Financial Results for FY2021 Q2 | ||
Attached Material | ||
Index | ||
1. Qualitative information on quarterly consolidated financial results ......................................................... | 2 | |
(1) | Explanation of operating results ............................................................................................................ | 2 |
(2) | Explanation of financial position........................................................................................................... | 6 |
(3) | Explanation of consolidated earnings forecasts and other forward-looking statements ........................ | 7 |
2. Quarterly consolidated financial statements and significant notes thereto ............................................... | 8 | |
(1) | Quarterly consolidated balance sheet .................................................................................................... | 8 |
(2) | Quarterly consolidated statements of income and comprehensive income ......................................... | 10 |
Quarterly consolidated statement of income ....................................................................................... | 10 | |
Quarterly consolidated statement of comprehensive income .............................................................. | 11 | |
(3) | Quarterly consolidated statement of cash flows .................................................................................. | 12 |
(4) | Notes to the quarterly consolidated financial statements..................................................................... | 14 |
(Notes on premise of going concern)................................................................................................... | 14 | |
(Notes on significant changes in the amount of shareholders' equity) ................................................ | 14 | |
(Changes in accounting policies)......................................................................................................... | 14 | |
(Segment information, etc.) ................................................................................................................. | 15 | |
(Significant events after reporting period)........................................................................................... | 17 |
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Sansan, Inc. (TSE 4443)
Financial Results for FY2021 Q2
1. Qualitative information on quarterly consolidated financial results
-
Explanation of operating results
Under the mission of Turning encounters into innovation and the vision of Become business infrastructure, the Group is developing services to solve various business issues by using new approaches that combine systems that use technology and data input to digitize analog information with cloud software.
Specifically, the Group is developing services in areas such as business card management, invoices and contracts, as well as business events and seminars, to promote digital transformation (DX) to change the working styles of companies and business people. Moreover, as a result of recent changes to working styles due to the spread of COVID-19, new ways of thinking toward DX, and greater attention being attracted to the SaaS (Software as a Service) products, the DX market is forecast to reach ¥3,042.5 billion (an increase of ¥2,251.3 billion since 2019) by 2030 (Note 1.), while the SaaS market in Japan is forecast to reach ¥1,117.8 billion by 2024 (an increase of ¥516.2 billion since 2019) (Note 2.). In addition, as the Group has grown, the B2B business card management service market has seen 13-fold expansion from 2013 to 2020, and the Sansan, operated by the Company, holds an 83.1% market share in this market (Note 3.).
Consolidated financial results for the first six months of the fiscal year ending May 31, 2022 (hereinafter, the "period under review") is as follows.
(Millions of yen) | |||
Six months ended | Six months ended | YoY change | |
November 30, 2020 | November 30, 2021 | ||
Net sales | 7,636 | 9,577 | +25.4% |
Gross profit | 6,690 | 8,446 | +26.2% |
Operating profit | 686 | (133) | - |
Ordinary profit | 454 | 643 | +41.7% |
Profit attributable to owners of | 388 | 573 | +47.8% |
parent | |||
In the period under review, the Group engaged in initiatives to strengthen the sales structure through strategic hiring, in order to realize continuous growth of net sales. In addition, apart from conducting advertising focused on TV commercials for the Bill One, an online invoice receiving solution, the Group engaged in initiatives such as expanding functions for the B2B business card-based contact management service Sansan and Eight, a business card management app.
In addition, as announced on October 8, 2021, the Company implemented a 4-for-1 stock split of common shares with an effective date of December 1, 2021.
As a result, net sales increased 25.4% year on year, gross profit increased 26.2% year on year, and gross profit margin was 88.2%, up 0.6 points year on year. However, operating profit decreased by ¥820 million year on year. Progress was made in the strategy to achieve medium- to long-term growth of net sales, so in addition to the ¥605 million year-on-year increase in advertising expenses, this was attributed to the ¥1,003 million year-on-year increase in personnel expenses due to the boosted hiring of employees and was in line with the consolidated earnings forecast announced at the beginning of the fiscal year. In addition, although ordinary profit increased 41.7% year on year and profit attributable to owners of parent increased 47.8% year on year, both representing significant increases, this was mainly the result of recording a gain on sale of investment securities in non-operating income in the first quarter of the fiscal year ending May 31, 2022, as announced on July 19, 2021.
Notes: 1. Based on 2020 Outlook of the Digital Transformation Market by Fuji Chimera Research Institute
- Based on 2020 New Software Business Markets by Fuji Chimera Research Institute
- Based on Latest Trends in Business Card Management Services in Sales Support DX 2022 (December 2021, survey by Seed Planning, in Japanese)
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