Sansan, Inc. (the “Company”) announces today that it will book the following non-operating expenses in the financial results for the three months ending May 31, 2020.
Due to the cancellation of part of an office lease agreement, the Company expects to record loss on cancellation of rental contracts charges of ¥187 million as non-operating expenses.
Having promoted the aggressive hiring of salespeople as a growth strategy, the Company had concluded a lease agreement for additional offices in light of the number of employees based on the future hiring plan. However, considering the uncertain business environment due to the spread of novel coronavirus (COVID-19) infections, we are currently optimizing investment costs, including the recruitment plan from the next term onward, from an economically rational viewpoint. As a part of that, the Company resolved at the Board of Directors Meeting held on May 29, 2020, to cancel part of the office lease agreement.
The impact on ordinary income from the consolidated financial forecast for the current year, announced on April 13, 2020, is as stated in 1. above. The Company is expecting to turn to the black and post a profit attributable to owners of parent, and this has not changed from the previous forecasts.
Including the forecast figures for profit attributable to owners of parent, which was previously undisclosed, the consolidated earnings forecast is currently under scrutiny. The Company will promptly inform you when new disclosure becomes possible or should it be judged that correction is necessary.