4443.T

Overall Financial Results

• 9-month cumulative revenue increased 26.1% year-over-year; adjusted operating profit increased 131.1% year-over-year, reaching an all-time high, driven mainly by Bill One's narrowing deficit.
• The third quarter standalone revenue increased 25.3% year-over-year; gross margin improved 0.4 percentage points year-over-year; adjusted operating profit increased 69.6% year-over-year, hitting a quarterly all-time high.
• Advertising expense increased 51.1% year-over-year due to enhanced promotion for Bill One, while personnel cost growth slowed to 11.7% year-over-year, pushing selling, general and administrative rate down 6.1 percentage points year-over-year.

AI Product Development

• Sansan AI initiatives:
  • Updated Sansan MCP Server: Added in-platform AI data processing to resolve quality variability in outputs from linking to external generative AI, enabling accurate reports without complex user configuration.
  • Refactored the fully customized Sansan AI Agent into the broadly accessible Sansan AI Search, which responds to high-abstract natural language queries with accurate results combining internal contact data and public information; formal launch targeted for summer 2026. Management expects these features to drive new customer acquisition and higher existing customer average revenue per user, and notes Sansan's structure for continuous collection of unique primary contact data strengthens its competitive advantage as AI adoption grows.
• Bill One AI initiatives:
  • Launched AI Automatic Matching as an optional feature in November 2025, which automates manual invoice-purchase order reconciliation. The feature has strong customer demand, with large new contracts including 42 million yen ARR and 28 million yen ARR secured already.
  • Scheduled AI Automatic Voucher Entry launch for summer 2026, which automates accounting journal entry and improves accuracy over time with user data; the planned Automatic Approval feature has already secured pre-launch new orders. Bill One's position holding structured primary invoice data enables end-to-end workflow automation, creating large room for value expansion.
• Contract One AI initiative: Scheduled launch of custom AI contract review in April 2026, which links to users' existing generative AI tools to pull in historical contract data per counterparty for context-aware, company-specific review, accelerating new customer acquisition.

Eight Segment Update

• The segment maintained profitable growth despite upfront investment in new large events to drive future expansion, with 9-month cumulative adjusted operating profit growing strongly.

• 2026 May Fiscal Year full-year guidance was upgraded: Revenue is now projected to increase 24.0% to 25.0% year-over-year, after raising the lower bound of the range. Adjusted operating profit is projected to increase 126.0% to 143.0% year-over-year, with adjusted operating profit margin projected at 15.0% to 16.0%, after raising the lower bound of the range.
• 2027 May Fiscal Year (mid-term) adjusted operating profit margin target was upgraded: The original range of 18% to 23% was revised to 20% to 23% (raising the lower bound), based on better-than-expected current profit performance. Full details for 2027 fiscal year revenue and profit will be disclosed in the full-year earnings release scheduled for July 2026.

1. Sansan/Bill One Segment: Total revenue increased 23.6% year-over-year. Within the segment:
   • Sansan: Adjusted operating profit increased 19.2% year-over-year; stock revenue increased 15.6% year-over-year, contract count increased 12.8% year-over-year-end, 12-month average monthly churn rate held steady at 0.54% (below 1%).
   • Bill One: MRR reached ~1.156 billion yen, up 36.8% year-over-year; net MRR increase for the quarter was 86 million yen, expanding for 4 consecutive quarters; paid contract count increased 36.1% year-over-year with 325 net new contracts in the quarter; deficit narrowed to ~60 million yen, an 800 million yen improvement year-over-year, with single months of profitability in the quarter.
   • Contract One: Revenue increased 101.9% year-over-year; contract count reached 653, up 102.2% year-over-year-end; ARR exceeded 1 billion yen as of March 2026.
   • Segment overall adjusted operating profit increased 76.8% year-over-year.
2. Eight Segment: Total revenue increased 41.1% year-over-year (B2C +9.9%, B2B +43.8%). Adjusted operating profit decreased 24.3% year-over-year due to upfront investment in new large events, but remained profitable.

• Sansan's new order volume saw a slight year-over-year decline in the third quarter, driven by two factors: the completion of prior year price adjustment that reduced existing customer average revenue per user growth, and many enterprises currently prioritizing generative AI investment over new Sansan deployments.
• There is market concern that internal generative AI tools could displace Sansan, though management has not observed any churn related to in-house replacement systems to date.

Q: With Bill One new orders performing well, are there any weakening trends in overall order trends including Sansan? What is the impact of in-house generative AI replacement? / A: Bill One new order acquisition remains very strong. Sansan saw a slight year-over-year order decline in Q3, caused by two factors: last year's price adjustment cycle completed, shrinking existing customer unit price growth, and enterprises are prioritizing generative AI investment which pushed down Sansan's project priority. Management notes that using Sansan to organize core data is actually foundational for enterprise generative AI utilization, and will launch targeted outreach in Q4 to recover order growth. No churn from in-house generative AI replacements has been observed.

Q: Have you seen growth in low-quality, cheap in-house or competing alternatives to Sansan/Bill One driven by generative AI? / A: While it is easier than ever for individuals to build small name management tools with generative AI, we have not seen meaningful growth of enterprise-grade in-house or competing alternatives that match Sansan/Bill One capability. Building a full enterprise-grade service from scratch is impractical, and enterprises see little business benefit to building such solutions in-house, so this has not impacted our business to date.