Sansan : Notification Regarding Booking of Deferred Tax Assets/Non-operating Expenses and Differences in Consolidated Financial Results

To whom it may concern:

	July 14, 2022
Company name	Sansan, Inc.
Representative	Chikahiro Terada,
	Representative Director & CEO
	(Code: 4443 TSE Prime Market)
Contact	Muneyuki Hashimoto,
	Director, Executive Officer, CFO
Tel	[phone]

Notification Regarding Booking of Deferred Tax Assets and Non-operating Expenses, and Differences in Consolidated Financial Results as Compared with Consolidated Full-year Earnings Forecasts or Actual Results for Previous Fiscal Year

Sansan, Inc. ("the Company") announces today that it has booked the following deferred tax assets and non-operating expenses in the financial results for the fiscal year ended May 31, 2022 ("FY2021"). In addition, the Company announces the differences between the consolidated financial results for FY2021 and the consolidated full-year earnings forecasts for FY2021 announced on July 14, 2021 or the actual results for the previous fiscal year ("FY2020"), as follows.

1. Details of Deferred Tax Assets

As a result of careful consideration of the recoverability of deferred tax assets based on FY2021, future performance trends and other factors, the Company recorded deferred tax assets and the corporate tax adjustment amount (- denotes profit) of -¥296 million for FY2021.

2. Details of Non-operating Expenses

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 ¥609 million (¥462 million recorded up to and including the third quarter) for FY2021.

3. Differences between Actual Results for FY2021 and Forecasts for FY2021 or Actual Results for FY2020

				Profit	Basic
		Operating	Ordinary	attributable
	Net sales	earnings
	profit	profit	to owners of
		per share
				parent
	Millions of yen	Millions of yen	Millions of yen	Millions of yen	Yen
Previous forecasts (a)	20,230
450
to	to	―	―	―
	20,716	800
Actual results for FY2021 (b)	20,420	631	968	857	6.87
	189	181
Variance (b-a)	to	to	―	―	―
	-295	-168
	0.9	40.4
% change	to	to	―	―	―
	-1.4	-21.0
Actual results for FY2020 (c)	16,184	736	375	182	1.47

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Variance (b-c)	―	―	593	675	―
% change	―	―	158.3	369.7	―

Note: The Company implemented a stock split of common shares at a ratio of 4-for-1 on December 1, 2021. Therefore, basic earnings per share is calculated on the assumption that said splitting of shares had been made at the beginning of the previous fiscal year.

4. Reasons for Differences

(Difference from consolidated full-year earnings forecasts)

Consolidated net sales and consolidated operating profit were within the range of the full-year forecasts announced at the beginning of the fiscal year. However, as a result of having made flexible investment decisions depending on the business environment, the progress made in our businesses, and other factors, consolidated operating profit far exceeded the lower limit.

(Difference from actual results for the previous fiscal year)

In the case of consolidated ordinary profit and profit attributable to owners of parent, reasonably estimating some non-operating profit and loss and other factors is beset with difficulties, and thus specific forecast figures were not disclosed. However, gain on sale of investment securities of 979 million yen was recorded as non-operating profit, resulting in a significant increase over the previous fiscal year.

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