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Investor Relations

Notification Regarding Booking of Non-operating Expenses, and Revision of Consolidated Full-year Earnings Forecasts

Sansan, Inc. (the “Company”) announces today that it will book the following non-operating expenses in the financial results for the fiscal year ended May 31, 2021 (“FY2020”). The Company also announces the following revisions to its consolidated earnings forecasts for FY2020 from the previous forecasts announced on July 14, 2020, reflecting the recent business performance.

1. Booking of Non-operating Expenses

Currently, our equity-method affiliates include CREATIVE SURVEY Inc., which handles online survey tools, SATORI Inc., which develops and sells marketing automation tools, etc. Since many of these affiliated companies are currently at the stage of aggressive investment for business growth and had posted a deficit, the Company expects to record a cumulative equity-method investment loss of ¥285 million (¥232 million recorded up to an including the third quarter) for the full year.

2. Revised Consolidated Full-year Earnings Forecasts for FY2020

Net sales Operating
profit
Ordinary
Profit
Profit
attributable
to owners of
parent
Basic
earnings per
share
Previous forecasts (a) Millions of yen Millions of yen Millions of yen Millions of yen Yen
15,767
to
16,302
757
to
1,010
Revised forecasts (b) 16,184 736 375
Variance (b-a) 417
to
-118
-21
to
-274
% change 2.6
to
-0.7
-2.8
to
-27.1
(For reference)
Results for FY2019
13,362 757 435 339 10.98

3. Reason for the Revision

In addition to the uncertain business environment that is expected to continue due to the impact of novel coronavirus (COVID-19) infections, in FY2020 consolidated net sales and consolidated operating profit were disclosed in a range, as we had planned to implement a variety of investments in an agile and flexible manner to accelerate the medium- to long-term sales growth rate. With regard to consolidated ordinary profit and profit attributable to owners of parent, we did not disclose specific forecast figures because of the difficulties in reasonably estimating some non-operating income. As mentioned in (1.) above, we have been able to carefully examine some of the forecast figures for non-operating income. Therefore, based on the latest performance trends and other factors, we revised the consolidated net sales and operating profit announced at the beginning of the fiscal year and have announced the consolidated ordinary profit, which then had yet to be decided. Since the amount of deferred tax assets recorded is being carefully examined at this time, the forecast numerical value for profit attributable to owners of parent will remain undisclosed. Although the Company is expecting to record a surplus in profit attributable to owners of parent.

Despite certain restrictions and the negative impact from the COVID-19 pandemic, consolidated net sales are expected to exceed the median range announced at the beginning of the fiscal year due to the steady acquisition of new subscriptions in the Sansan Business. The number of “Sansan” subscriptions as of the end of May 2021 is expected to be 7,744 (up 14.7% year on year). Under the abovementioned policy announced at the beginning of the term, by which we aim to achieve medium- to long-term sales growth, in light of the steady performance up to and including the third quarter we expected consolidated operating profit to be slightly below the lower limit of the range announced at the beginning of the term. This is as a result of, for example, promoting the strengthening of company-wide hiring and reinforcing advertising activities in the rapidly growing “Bill One” online invoice receiving solution.

As a result of the above, consolidated net sales are expected to total ¥16,184 million (¥417 million increase to ¥118 million decrease from the previous forecast) and consolidated operating profit is expected to total ¥736 million (¥21 million decrease to ¥274 million decrease from the previous forecast). Furthermore, consolidated ordinary profit is expected to total ¥375 million.

* 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.