Investor Relations

Notification Regarding Booking of Non-operating Expenses, Extraordinary Income and Extraordinary Losses

Sansan, Inc. (“the Company”) announces today that it has booked, in the consolidated cumulative period for the third quarter of the fiscal year ending May 2022 (June 1, 2021, to February 28, 2022), the following non-operating expenses (share of loss of entities accounted for using equity method), extraordinary income (gain on change in equity) and extraordinary losses (loss on valuation of investment securities).

1. Details of the Non-operating Expenses, Extraordinary Income and Extraordinary Losses

(Non-operating expenses)
Currently, the Company’s equity-method affiliates include CREATIVE SURVEY Inc., which handles online survey tools, and 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, such as product development and marketing, and have posted deficits, the Company recorded a cumulative equity-method investment loss of ¥462 million (¥205 million recorded up to and including the second quarter) for the nine months ended February 28, 2022.

(Extraordinary income)
In the nine-month period up to February 28, 2022, the Company recorded gain on change in equity of ¥105 million as extraordinary income due to a capital increase through the third-party allocation of shares by an equity-method affiliate of the Company.

(Extraordinary losses)
With regard to some of the investment securities held by the Company, in the nine-month period up to February 28, 2022, the Company recorded under extraordinary losses a ¥113 million loss on valuation of investment securities due to impairment, because the market price had dropped significantly compared with their acquisition price.

2. Outlook

The aforementioned non-operating expenses, extraordinary income and extraordinary losses have been fully reflected in the financial results announced today as the “Financial Results for FY2021 Q3.” Although the Company is expecting to record a surplus in both ordinary profit and profit attributable to owners of parent for FY2021, it is difficult to make a precise forecast. Accordingly, the Company will refrain from disclosing a concrete forecast at this point in time.