April 13, 2020
To whom it may concern:
Company name

Sansan, Inc.

Representative

Chikahiro Terada,
Representative Director & CEO(Code: 4443 TSE Mothers)

Contact

Muneyuki Hashimoto,Executive Officer, CFO

TEL+81-3-6758-0033

Notification regarding Booking of Non-operating Expenses and Extraordinary Losses,
and Revision of Consolidated Full-year Earnings Forecasts
Sansan, Inc. (the “Company”) announces today that it has booked the following non-operating expenses
and extraordinary losses in the financial results for the nine months ended February 29, 2020. TheCompany also announces the following revisions to its consolidated earnings forecasts for the fiscal year
ending May 31, 2020 (“FY2019”) from the previous forecasts announced on July 12, 2019, reflecting therecent business performance.
1. Details of the Non-operating Expenses and Extraordinary Losses(Non-operating Expenses)
The Company recorded a ¥37 million loss on share of loss of entities accounted for using equity method
associated with CREATIVE SURVEY Inc., an equity method affiliate of the Company. Established in 2014,
their main business is providing online questionnaire tools, but a deficit has been recorded as they are
currently at the stage where it is actively investing in business growth, such as in product development
and marketing.
(Extraordinary Losses)
Amid the situation caused by the spread of novel coronavirus (COVID-19) infections, we canceled theCompany-hosted “Sansan Innovation Project 2020” business conference, which was planned for March
12 and 13, 2020, and the holding of all types of seminars. Due to these matters, various expenses of ¥54
million incurred in making the preparations for holding the events are recorded as loss on cancellation ofevents.
The aforementioned non-operating expenses and extraordinary losses have been fully reflected in thefinancial results announced today as the “Financial Results for FY2019 Q3.”
2. Revised Consolidated Full-year Earnings Forecasts for FY2019
Net sales

OperatingprofitOrdinary
ProfitProfitattributableto owners ofparent

Basicearnings pershare

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

Previous forecasts (a)13,816

724

670

Revised forecasts (b)13,221

591

485

―
―――

Variance (b-a)

-595

-133

-185

――% change (b/a)-4.3-18.4-27.6――1

(For reference)
10,206-849-891-945-40.42
Results for FY2018* The Company is expecting to turn to the black and post a profit attributable to owners of parent, this has
not changed from the previous forecasts. The Company is expecting an increased estimate of taxable
income due to improved performance in the medium term. Accordingly, it is possible that the Company willrecord income taxes-deferred mainly due to an increase in deferred tax assets pertaining to tax loss
carryforward in FY2019, but as it is difficult to detail the amount to be recorded in income taxes -deferred
based on prospective business performance, etc. for FY2020, concrete forecasts for profit attributable toowners of parent are not disclosed.
3. Reason for the Revision
In the Eight Business, the Company revised the number of events to be held downward as a result ofgreatly revising the events planned to be held for the business event “Meets” after taking performance, etc.
until the second quarter into consideration. In addition, as a result of circumstances such as the possible
postponement of a large-scale event and other events that were planned for the fourth quarter due to thespread of the novel coronavirus (COVID-19), the Company is expecting financial results to fall short of theearnings forecasts made at the beginning of the fiscal year.
In the Sansan Business, as a result of the strengthening of the sales structure, which proceeded from thesecond half of the previous fiscal year, steady growth continued year on year through the third quarter.
Due to the spread of the novel coronavirus (COVID-19), the “Sansan Innovation Project 2020” business
conference was canceled and the business environment is partially uncertain in the fourth quarter from theaspect of new subscription acquisition, but the Sansan Business performance is expected to be largely inline with the earnings forecasts made at the beginning of the fiscal year. Although there is a rapidly growing
trend of expanding diverse working styles such as remote work and non-face-to-face sales, significant
impacts on existing subscriptions in the Sansan Business, which accounts for a large portion of theCompany’s financial results, are not expected to occur. This is because “Sansan,” a cloud-based businesscard management service, has the ability to support a variety of working styles such as remote work due
to having the special characteristic of being able to access customer information with a high level ofsecurity regardless of time and place, in addition to having a low average monthly churn rate of 0.55% for
the most recent 12 months at the end of February 2020. Furthermore, the payment model has been
constructed in a manner where it is difficult to feel the impact of short-term changes in the businessenvironment by concluding yearly contracts where the yearly usage fee is set in advance.
As a result of the above, consolidated net sales are expected to total ¥13,221 million (¥595 million
decrease from the previous forecast). In light of the uncertain business environment, consolidated
operating profit is expected to total ¥591 million (¥133 million decrease from the previous forecast) as aresult of flexibly reviewing a portion of the investment plan, focusing on advertising activities. Furthermore,
consolidated ordinary profit is expected to total ¥485 million (¥185 million decrease from the previousforecast).

* 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.

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