Sansan, Inc. (the “Company”) recognized deferred tax assets for the fiscal year ended May 31, 2025 (“FY2024”) as follows. In addition, the Company announces the differences between the consolidated financial results for FY2024 and the actual results for the previous fiscal year as follows.

1. Recognition of Deferred Tax Assets

As a result of careful consideration of the recoverability of deferred tax assets for FY2024, future business performance trends, and other factors, the Company recognized deferred tax assets and deferred income taxes of ¥(1,006) million (negative figure denotes a tax benefit) for FY2024.

2. Difference Between Actual Results for FY2024 and Actual Results for FY2023

Note: Adjusted operating profit = operating profit + share-based payment expenses + expenses arising from business combinations (amortization of goodwill and amortization of intangible assets).
Note: As reasonably estimating share-based payment expenses, which may fluctuate greatly depending on the Company’s stock price level, and some other non-operating income and expenses are beset with difficulties, specific forecast figures are disclosed for net sales and adjusted operating profit only.

3. Reasons for Differences

The differences in operating profit and ordinary profit were due to the steady year-on-year increase in net sales, as well as an improvement in the gross profit margin and a decline in the SG&A ratio.
The difference in profit attributable to owners of parent for the fiscal year is due to an extraordinary loss of ¥2,301 million from the provision for loss on share sale contract in connection with the transfer of shares in Unipos Inc., as disclosed in the “Notification Regarding Additional Acquisition of Preferred Stock of and Termination of the Capital and Business Alliance with Unipos Inc., and Booking of Loss Arising from Transfer of Investment Securities (Extraordinary Loss),” dated May 22, 2025.