マネーフォワード（3994） – Presentation Material for FY11/22 1Q Financial Results

Financial Results for the 1st Quarter of Fiscal Year Ending November 30, 2022April 13, 20221Financial Performance of Each Business Domain in FY11/22 Q1 P.19Our BusinessHighlights in FY11/22 Q1Progress on Growth StrategyOther InitiativesGuidance for FY11/22 on and laterAppendixP.2P.9P.39 P.70 P.74P.79 Our BusinessMoney Forward.Move your life forward.MISSIONVISIONBecoming the financial platform for all.VALUEUser Focus | Technology Driven | FairnessCULTURESpeed | Pride | Teamwork | Respect | FunCreate a Sustainable Society Through Realizing Our Mission/VisionWe have set 3 priorities to achieve the SDGs targets.We contribute to resolving financial issues for all and create society that drives challenge.4User ForwardSociety ForwardTalent Forward•••Provide services that solve financial issues for a diverse range of users (corporates, sole proprietors, and individuals)Solve users’ problems with technology and designPromote investment in security to ensure the safety•••Contribute to DX of society with diverse partnersPromoting activities to realize a better social systemPractice environmentally friendly managementSDGs Target••Create diverse growth opportunities to draw out the potential of employees• Management’s commitment to member developmentCreate an environment that accepts diverse viewpoints regardless of gender, nationality, age, and educational backgroundFoundations Supporting 3 Priority ThemesPenetration of Money Forward’s Mission/Vision/Value/CultureGovernance that Balances Offense and DefenseExpanding Business Field Through New Business Development and M&A5Expansion and Growth of Business FieldSaaSMarketing PlatformFinance ServicesFintech Promotion/DXSupportSaaS Applications for Back Office OperationsPersonal Financial ManagementCloudIT Management CloudFinancial PlanningFixed Costs Review2012/122013/112015/112017/62019/11PresentProviding One of Japan’s Largest User Base and Product Lineup in SaaS / Fintech Field6CorporatesIndividualsFinancial InstitutionsSaaS Applications for Back Office OperationsCloud service for back-office operations (accounting/finance, HR, legal, and information systems) # Paying customer : 200k, approx. half of which are corporates.SaaS Marketing PlatformJapan’s one of the largest SaaS marketing platformsoperated by SMARTCAMPFinancial ServicesProvides BtoB deferred payment billing and factoring services. Provides online factoring service in partnership with MUFG.Personal Financial Management Services# User : 12.8mn+Japan’s No. 1 share*1# Paying customer：360K+Aggregated Asset : ¥18tn*2Digital Transformation of Financial InstitutionsFintech platform linking individuals/corporates, financial institutions and fintech companies.Developed 74 services (including joint development)59.9%(YoY+48%)12.4%(YoY+38%)5.4%(YoY+35%)14.4%(YoY+24%)7.9%(YoY+2%)CloudIT Management CloudFixed Costs ReviewFinancial Planning* Graph shows the proportion of FY11/22 Q1 revenue. *1 See P.110 for details. *2 As of March 23, 2022. Total amount of financial assets that is aggregated in Money Forward MEand white-label services for individuals provided by Money Forward X.Rapidly Expanding Business Opportunities Due to Changes in External Environment7Revised Electronic Books Maintenance Act/Introduction of invoice Introduction of remote work amid COVID-19 pandemicGovernment’s promotion of digitalizationGreater use of open APIReview of Payment Services ActDigitalization of salary paymentDeveloping Variety of Products Based on Common Core Technologies82,590*1*1 Based on research by Money Forward, Inc. as of Feb 2022.HighlightsIn FY11/22 Q1Highlights in FY11/22 Q110Q1 Consolidated net salesSaaS ARR*3Paved the path towardreaching full-year forecasts*1vQ1 results largely exceededinitial forecasts*2, achieving a record-high quarterly growth in SaaS ARR+37% YoYv¥4.76 billion+40% YoYv¥12.9 billionGrowth was driven by ARR of corporate customers in Business domain, which rose by 47% YoY (40% YoY excluding impacts of HiTTO, Inc. joining the Group). Decided to Acquire Nexsol Co., Ltd. *5vto enhance value of the financial consulting service in Money Forward MEEBITDA*4/Gross profitGroup employees¥(1.16) billion / ¥3.14 billionvEBITDA excluding advertising expenses was ¥0.55 billion. Quarterly gross profit posted a record high.1,389 membersvThe number of employees increased by 130 in Q1.*1 Full-year forecasts were ¥20.32 to 21.89 billion (+30 to 40% YoY) for net sales and ¥15.72 to 16.84 billion (+40 to 50% YoY) for SaaS ARR at FY11/22-end. *2 Forecasts disclosed on January 14, 2022. Quarterly forecasts were ¥4.30 to 4.37 billion (+24 to 26% YoY) for net sales, ¥(2.4) to (1.9) billion for EBITDA, and ¥12.54 to 12.73 billion (+36 to 38% YoY) for SaaS ARR at Q1-end. Forecasts were revised upward on March 1, 2022 to ¥4.65 to 4.72 billion for net sales (+¥0.35 billion vs. initial forecasts) and ¥(1.6) to (1.1) billion for EBITDA (+¥0.8 billion vs. initial forecasts), and ¥12.64 to 12.83 billion for SaaS ARR (+ ¥0.1 billion vs. initial forecasts).*3 See p.92 for the definition of SaaS ARR. *4 EBITDA = Operating profit/loss + Depreciation and amortization + Tax expenses included in operating expenses + Share-based remuneration expenses *5 See p.62 and 63 for details.Consolidated Net Sales Continued to Grow Rapidly in Q1, Increasing by 37% YoY11Growth was driven by net sales of Business domain, which rose by 46% YoY.（¥ mn）5,0004,5004,0003,5003,0002,5002,0001,5001,0005000R&AC Co.,Ltd. which provides V-ONE Cloud joined the GroupSmartcamp Co., Ltd. which provides BOXIL joined the Group3,467 3,348 176 466 190 370 548 2,821 2,756 227 193 256 497 444 2,394 2,216 147 248 438 452 466 1,881 93 259 368 125 340 511 833 853 919 1,159 1,235 1,559 1,675 1,862 Knowledge Labo, Inc. which provides Manageboard joined the GroupKlavis Inc. which provides STREAMED joined the Group965 906 2 3 173 106 261 311 1,091 1,130 17 103 293 7 183 299 477 533 599 715 1,469 1,398 36 204 390 48 133 361 1,661 74 272 393 693 732 117 212 126 211 354 401 510 65 172 272 Q1YoY+37%HiTTO Inc. which provides HiTTO joined the Group4,756 4,339 256 377 681 3,993 3,833 198 620 190 383 191 508 620 608 639 （YoY）+35%+2%*1+24%*13,017 2,567 2,618 2,203 2,357 3,434 +46%*2Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1FY11/17FY11/18FY11/19FY11/20FY11/21FY11/22* The aggregate of net sales of each domain do not necessarily correspond to consolidated net sales as net sales of “Other” are omitted from the graph. *1 Net sales from premium charges of Money Forward for XX, which targets financial institutions, have been revised retroactively since charges will be recognized in X domain from FY11/22. Net sales from premium charges of Money Forward for XXin FY11/21 Q4 stood at ¥12 million (¥(12) million in Home domain and ¥12 million in X domain), and does not impact consolidated net sales.*2 The net sales growth rate of Business domain excluding the impact of the acquisition of HiTTO Inc. was 43% YoY. Net sales of HiTTO Inc. are consolidated from FY11/22 Q1 (for two months starting from January).12SaaS ARR*1 Achieved Strong Growth, Rising by 40% YoYARR of corporate customers in Business domain increased by +47% YoY.*2ARR of sole proprietors also achieved accelerated growth of 35% YoY. YoY+40%12,904 331782 （YoY）+60%+16%HiTTO Inc. which provides HiTTO joined the Group11,227 283755 10,507 259769 10,132 232712 8,727 +47%7,374 6,539 6,754 R&AC Co.,Ltd. which provides V-ONE Cloud joined the Group9,224 207676 8,439 186635 7,840 159609 5,948 5,381 4,914 Knowledge Labo, Inc. which provides Manageboard joined the GroupKlavis Inc. which provides STREAMED joined the Group4,164 71346 3,916 59353 2,214 2,383 3,535 31358 3,180 18337 1,768 1,958 4,952 58417 4,625 53372 2,708 2,948 Price plan changed7,287 122599 6,814 112515 6,319 99474 5,924 68448 3,594 3,827 4,160 4,489 357 700 425 763 450 840 472 892 514 977 570 814 818 960 1,000 1,100 1,171 1,241 855 836 836 857 936 1,040 1,064 1,092 1,264 1,322 1,380 1,457 1,608 1,661 1,724 1,800 +35%+24%Home :Premium ChargesBusiness Sole ProprietorsBusiness :CorporateX Recurring RevenueFinance Recurring Revenue（¥ mn）12,00010,0008,0006,0004,0001,734 2,000211 871 197 455 Q102,677 10315 1,395 314 643 2,119 2,335 4276 1235 1,080 1,228 267 536 Q2294 533 Q3FY11/17Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1FY11/18FY11/19FY11/20FY11/21FY11/22*1 “Business: Sole Proprietors” is revenue from services for sole proprietors in Money Forward Cloud. “Business: Corporates” is revenue from services for corporate customers, including Money Forward Cloud, STREAMED, Manageboard, V-ONE Cloud, Money Forward Certified Member System, and HiTTO. In order to adjust for seasonal factors of STREAMED, its MRR is calculated as one-third of the revenue from STREAMEDin Q1 and Q2 of each fiscal year. From FY11/22, adjustments will also be made to Q2 figures, which are seasonally affected by tax returns. Non-recurring revenue of each business and net sales of SMARTCAMP Co., Ltd. are not included. Figures for Finance domain include monthly fixed fees, and settlement and associated fees of Money Forward Kessai. See p.92 for the definitions of ARR, MRR, etc. Net sales from premium charges of Money Forward for XX, which targets financial institutions, have been revised retroactively since charges will be recognized in X domain from FY11/22. ARR from premium charges of Money Forward for XXin FY11/21 Q4 stood at ¥47 million (¥(47) million in Home premium charges and ¥47 million in X recurring revenue), and does not impact consolidated ARR.*2 Increased by 40% YoY excluding the impact of the acquisition of HiTTO Inc.Gross Profit and EBITDA (Quarterly Trend)13Gross profit margin was 66%. (Gross profit margin after adjustment*1 was 70%.）EBITDA excluding and including advertising expenses were approximately ¥0.55 billion and ¥(1.16) billion, respectively.Gross ProfitEBITDA*2（¥ mn） □Gross Profit ■Gross Profit Margin（¥ mn） □EBITDA □ EBITDA（excl. advertising expenses）70% 65%68%67%73% 71%70%66%64%FY11/18FY11/19FY11/20FY11/21FY11/22Q1 Q2 Q3Q4Q1 Q2 Q3 Q4Q1Q2 Q3 Q4Q1Q2 Q3 Q4Q167%3,20065%65%62%60%59%54% 53%2,8002,4002,0001,6001,20080040003,1432,8402,678 2,7582,5432,2791,831 1,8401,6681,3351,2201,022610 709 672792 746Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1Q2Q3 Q4 Q1Q2 Q3 Q4 Q1FY11/18FY11/19FY11/20FY11/21FY11/2260%40%20%0%1,300900500100△300△700△1,100△1,5001,017 910 693 547 504 506 398 355 358 290 65 59 152 22 △82 △55△118 △150△225△234△45△147△199△354△221△478△478△460 △421△921△92342 △260△1,159*1 Both net sales and cost of sales because net sales and fees related to IT introduction subsidies are excluded as it has seasonality. When ADXL executes the advertising operations of the Group, the costs are recorded as cost of sales. (i.e. Net sales at ADXLand the outsourcing costs at Group companies are offset in the consolidation process, and ADXL’s purchase costs for advertising media are recorded as cost of sales in consolidated PL). Such ADXL’s costs (¥68 million) are excluded from cost of sales in 1Q.*2 EBITDA = Operating profit/loss + Depreciation and amortization + Tax expenses included in operating expenses + Share-based remuneration expenses Breakdown of Expenses (Cost of Sales & SGA)Bolstered aggressive investments in Business domain (for advertising and personnel expenses) to drive growth.14（¥ mn）Personnel ExpensesSubcontract ExpensesComission FeeRentsOtherAdvertising Expenses6,5006,0005,5005,0004,5004,0003,5003,0002,5002,0001,5001,00034 50002,382 2,235 2,191 1,757 567 279 84 371 113 153 313 453 123 110 291 425 113 125 308 243 459 126 101 262 723 844 979 999 1,133 1,188 1,029 147 196 75 109 468 114 235 64 98 143 534 1,416 106 344 115 103 160 588 3,435 1,429 3,386 727 3,026 2,795 612 391 144 169 360 432 608 131 121 370 3,113 502 345 173 174 397 819 378 163 179 431 552 234 172 235 494 484 167 276 509 577 177 260 487 1,350 1,465 1,523 1,619 1,699 4,549 4,279 765 4,030 6,395 1,707 5,000 682 177 367 923 695 179 333 775 652 558 165 295 573 Advertising expenses・ Aired TV commercials of Money Forward Cloudand Money Forward MEto raise brand recognition.・Continued to aggressively invest in advertising related to Money Forward Cloud, an area achieving solid customer acquisition.Subcontract expenses・ Increased as a result of subcontracting development in X and Business domains.1,867 2,036 2,539 2,253 Personnel expenses・ Increased personnel mainly in Business domain.FY11/18FY11/18FY11/18FY11/18FY11/19FY11/19FY11/19FY11/19FY11/20FY11/20FY11/20FY11/20FY11/21FY11/21FY11/21FY11/21FY11/22Q1Q2Q34QQ1Q2Q34QQ1Q2Q3Q4Q1Q2Q3Q4Q1* “Other” includes IT introduction subsidy fees, taxes and dues, communication expenses, recruiting/training expenses, amortization of goodwill, depreciation, and fee expenses.Q1 Results vs. Initial Forecasts (Net Sales and SaaS ARR)Both net sales and SaaS ARR outperformed initial forecasts owing to accelerated adoptions of Money Forward Cloud(recurring and non-recurring revenues of Business domain) and steady progress made in the accounts receivable financing business of Money Forward Kessai, Inc. (non-recurring revenue of Finance domain).15Business domainHome domainX domainFinance domain（¥ mn）5,0004,299～4,368Net sales4,756 256 377 681 3,434 Finance domain・ Exceeded expectations by enhancing the screening and sales structure in the accounts receivable financing business.Business domain・ Recurring and non-recurring revenues topped initial forecasts in Business domain on the back of favorable progress in adoptions of Money Forward Cloudby corporate customers. ・ Also, made steady progress in acquisition of new sole proprietor users during the tax return period.SaaS ARRHome :Premium ChargesBusiness :Sole ProprietorsBusiness :CorporatesX :Recurring RevenueFinance :Recurring Revenue12,545～12,72912,904 331 782 8,727 1,264 1,800 （¥ mn）14,00012,00010,0008,0006,0004,0002,00004,5004,0003,5003,0002,5002,0001,5001,0005000Initial ForecastActual ResultsInitial ForecastActual Results* Figures for initial forecasts are those disclosed on January 14, 2022.Q1 Results vs. Initial Forecasts (EBITDA)16EBITDA stood at ¥1,159 million (+¥741 million vs. the upper end of initial forecasts) since net sales exceeded initial guidance and personnel expenses came in lower than guidance, although we continued to actively recruit personnel and strengthen our organizational structure.EBITDAInitial ForecastActual Results△1,159△1,900～△2,400（¥ mn）0-500-1,000-1,500-2,000-2,500-3,000* Figures for initial forecasts are those disclosed on January 14, 2022.Employees*1Recruiting progressed steadily, mainly in Business domain, with an addition of 130 employees in Q1.17（# of People）1,400BusinessHomeX1,200FinanceOther Engineer/Designer1,000Corporates80060040029 20015 0394 38 55 43 52 23 44 10 177 241 35 32 120 132 207 61 78 58 1,259 126 197 56 66 55 759 865 86 132 51 47 50 499 691 74 92 39 65 383 11/17 End11/18 End11/19 End11/20 End11/21 End02/22 End1,389 Major Changes from FY11/21-endOther Engineers and designers•Increased by recruiting engineers and designers.853 Cloud.• Bolstered hiring centered on Money Forward • Mainly employed new personnel in sales and customer success for products targeting medium-sized companies.* “Other Engineers/Designers” include the CISO Dept., CTO Dept., Account Aggregation Dept., and Money Forward Vietnam, Co., Ltd. “Corporate” includes CEO’s Office, Corporate Planning Dept., Accounting Dept., Legal and IP Dept., People Forward Dept., and Public Affairs Office.*1 Includes executive officers who do not serve as directors.Balance Sheet Items（¥ mn）Cash and deposits decreased mainly due to payments associated to the M&A of HiTTO Inc. (¥1,999 million). We will continue to make active investments for business growth.18Cash and Deposits33,344 Non-current LiabilitiesLong-term borrowings2,079Short-term borrowings*16,580Current portion of long-term borrowings1,751Current Liabilities17,003 2,221 Net Assets40,339 Liabilities / Net AssetsPurchased receivables*15,515Goodwill4,847Investment Securities5,379Software3,745Other Current AssetsNon-current 10,303 Assets15,917 Assets*1 Related to Money Forward Kessai, Inc.Business domainHighlights in FY11/22 Q120Q1 net sales¥3.43 billionYoYv+46%Increased by 43% YoY excluding the impact of the acquisition of HiTTO Inc.Total/corporate paying customers201,000+ / 93,000+Total/corporate ARPA¥49,561 / ¥93,031YoYv+30.7% /+27.1%YoYv+11.0% /+15.4%Corporate ARPA excluding ARPA of HiTTOwas ¥88,727 (+10.1% YoY)Ratio of ARR of medium-sized companies*1to total corporate ARRv30%+Gross margin rate of SaaS applications for back-office operations*280.9%vCustomer churn rate*3(12-month/3-month average)1.5% / 1.3%vGross profit of SaaS applications for back-office operations was ¥2.3 billion. (Revenue: ¥2.8 billion)*1 Medium-sized companies refer to corporate customers (excluding professional service firms), mostly with 30 or more employees, that have deployed our services via field sales or partner sales.*2 Total of Business domain excluding SMARTCAMP Co., Ltd. Calculated based on the definition for typical global SaaS companies. Costs include communication expenses and system usage fees related to product development, depreciation of software assets, server fees including for AWS, API connection fee, and personnel expenses related to customer support, service infrastructure, and operators of STREAMED.*3 Averages of the 12 months and 3 months up to February 2022.Business domainQuarterly Net Sales of Business Domain 21Increased markedly, growing by +46% YoY. In particular, growth was driven by recurring revenue of corporate customers, which rose by 43% YoY*1.YoY+46%（¥ mn）3,500ストック売上（個人事業主）ストック売上（法人）スマートキャンプ社売上高フロー売上3,0002,5002,0001,5001,0005000Knowledge Labo, Inc. which provides Manageboardjoined the GroupKlavis Inc. which provides STREAMEDjoined the Group2721720649Q13544025163Q24013030071Q34776034176Q45331643582Q15991548797Q2833140853719196371574536582663722105Q3110Q4119Q1134Q2HiTTO Inc. which providesHiTTO joined the Group3,434（YoY）+87%+38%3,0174545903545992,567 2,6182354642164792,3572434282,2033642,090+43%1,609 1,6581,7931,4591,317R&AC Co.,Ltd. which provides V-ONE Cloud joined the GroupSmartcamp Co., Ltd. which provides BOXILjoined the Group1,862311Price plan changed1,235961,159691,675743141673221,559622518869371,039 1,083 1,170204203206204203212227259264271299+32%Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1FY11/17FY11/18FY11/19FY11/20FY11/21FY11/22* “Recurring Revenue (Sole proprietors)” is the revenue from services for sole proprietors in Money Forward Cloud. “Recurring Revenue (Corporates)” is the revenue from services for corporate customers, including Money Forward Cloud, STREAMED,Manageboard, V-ONE Cloud, Money Forward Certified Member System, and HiTTO. Non-recurring revenue primarily consists of sales from IT introduction subsidies, sales from initial implementations of Money Forward Cloudand V-ONE Cloudmainly by medium-sized companies, sales from consulting by Knowledge Labo, Inc., and sales from card payment fees in Money Forward Pay for Business. *1 The growth rate of “Recurring Revenue (Corporates)” excluding the impact of the acquisition of HiTTO Inc. was 39% YoY. Business domainAccelerated Growth in Number of Paying Customers*1 and ARPA*2 Net growth of sole proprietor users accelerated, with the number of paying customers up 30.7% YoY. Corporate ARPA, including ARPA of recently acquired HiTTO Inc., rose by 15.4% YoY. Even without including HiTTO Inc., corporate ARPA increased by 10.1% YoY (owing to partial price plan revisions for medium-sized companies and growth of STREAMEDfor SMEs).22（# of Paying Customer）Sole ProprietorsCorporatesPaying customers*1ARPA*2+12k183,303 Acquisition of HiTTO 174,790 Acquisition of R&AC166,597 154,261 142,214 135,178 +1.8k（YoY 1.5x）（YoY）（¥）201,669 +30.7%TotalSole ProprietorsCorporates（YoY）+15.4%93,031 Acquisition of R&AC73,542 75,032 77,189 80,587 83,111 80,954 83,281 Corporate ARPA excluding HiTTO:¥88,727 (+10.1% YoY)93,803 +27.1%70,00071,082 68,337 128,569 123,617 117,644 83,431 78,682 88,548 100,00058,523 61,039 56,007 73,813 65,498 69,713 39,488 40,571 41,416 42,537 43,864 44,630 45,494 44,730 46,187 49,561 +11.0%61,637 65,094 67,530 69,680 72,501 80,448 87,915 91,359 94,755 107,866 +34.1%13,274 13,139 12,378 11,992 11,821 11,640 11,827 11,651 11,523 11,715 +0.6%100,00090,00080,00060,00050,00040,00030,00020,00010,0000200,000150,00050,0000FY11/19FY11/20FY11/20FY11/20FY11/20FY11/21FY11/21FY11/21FY11/21FY11/22FY11/19FY11/20FY11/20FY11/20FY11/20FY11/21FY11/21FY11/21FY11/21FY11/22Q4 EndQ1 EndQ2 EndQ3 EndQ4 EndQ1 EndQ2 EndQ3 EndQ4 EndQ1 EndQ4 EndQ1 EndQ2 EndQ3 EndQ4 EndQ1 EndQ2 EndQ3 EndQ4 EndQ1 End*1 The number of paying customers who are sole proprietors is the number of those who pay for Money Forward Cloudservices catering to individuals. The number of corporate paying customers include business corporations, and professional service firms and their clients that pay for services catering to corporations, including Money Forward Cloud, STREAMED, Manageboard, V-ONE Cloud, and HiTTO, as well as professional service firms that pay for Money Forward Cloud Certified Member System. SMARTCAMP Co., Ltd. is not included in the figures above.*2 ARPA: 12 times the monthly recurring revenue of Business domain in the last month of each term (ARR), divided by the number of paying customers. See p.92 for detailed definitions.Business domainOur Customers（1/2）Money Forward Cloud Accounting Plus users increased steadily.Corporates using Money Forward Cloud Accounting Plus（Examples）23Business domainOur Customers（2/2）24Expanding the client base that includes listed companies, medium-sized companies, and companies preparing for IPO.Corporates using cloud payroll, attendance, expense, social insurance, V-ONE Cloud, HiTTO etc.（Examples）ynapmoCdetsiL TSE1st / 2ndTSEMothersMedium-sized,Pre IPO* Market segmentation of listed companies is based on the market segmentation of the Tokyo Stock Exchange prior to April 3, 2022.26YoY+24%（YoY）681167+3%55+188%6396206081281359344166295481621949713214HOME domainQuarterly Net Sales of Home DomainQ1 net sales grew by 24% YoY to hit a quarterly record high.（¥ mn）プレミアム課金収入金融関連サービス収入メディア・広告収入8007006005004003001000511Introduced Annual Plan ofPremium Charges▼39339036136823517212614010346644443813889813140731115326192299 29310586200172211212837362108125136154169194207218236254264277291320333351367413418440460+26%Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1FY11/17FY11/18FY11/19FY11/20FY11/21FY11/22*1 Net sales from financial services include revenues from Money Forward Financial Planningand Money Forward Fixed Cost Review.* Net sales from premium charges of Money Forward for XX, which targets financial institutions, have been revised retroactively since charges will be recognized in X domain from FY11/22.HOME domainNumber of Total and Paying Users of Money Forward ME27The number of total users continued to increase, topping 12.8 million*1, with the number of paying users growing steadily, up 24% YoY.Number of Paying Customersプレミアム課金ユーザー数利用者数Number of users（# of Paying Customers）（# of users）14,000,00012,000,00010,000,0008,000,0006,000,0004,000,0002,000,000012.8m363k+450,000400,000350,000300,000250,000200,000150,000100,00050,0000Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1FY11/17FY11/18FY11/19FY11/20FY11/21FY11/22*1 Number of users of Money Forward MEin Home domain, which is the total number of app downloads and web registrations of Money Forward ME. The number of users of services for financial institutions provided in X domain, which was included in the past, is not included.HOME domainContinued to Enhance User Experience in Money Forward ME28The service has evolved into a platform that seamlessly transfers customers to financial services by capitalizing on asset data, totaling 18 trillion yen*1, and household income/expense data.Asset management functionLists total assets and breakdown by asset type by connecting to various financial services.PFM functionVisualizes household accounting book (income and expenses) for the current month based on automatically acquired data and manual entries. Categorizes expenses.Budget managementVisualizes actual expenses vs. budget by category through setting a monthly budget for each category in fixed and variable costs, according to users’ monthly savings target.Financial servicesSends customers to various related services. Planning to reinforce data connections to further address financial issues.Automatic investmentAdvice on PFMFinancialplanningElectricity plan reviewHometown tax donationInsurance policy reviewSeminar infoJob change supportTax returnMONEY PLUS*1 As of March 23, 2022. Total amount of financial assets that is aggregated in Money Forward MEand white-label services for individuals provided by Money Forward X. HOME domainUpdated Asset Management Functions for Paying Users of Money Forward ME29To supplement the screen listing all assets, added a function that visualizes the performance of individual stocks, includingvaluation gain/loss and price fluctuations.Users can now grasp the status of their assets in more detailby checking daily price movements and past performance of each stock.31X domainQuarterly Net Sales of X DomainNet sales increased by 2% YoY, with recurring revenue rising by 16% YoY.Recurring revenue is expected to grow at an accelerated pace toward 2H.（¥ mn）■Recurring Revenue□Non-Recurring Revenue6005004003002001000620 YoY+2%508 （YoY）452 466 340 223 272 259 316 256 248 300 202 170 150 123 105 370 444 383 377 317 192 183 (9%)137 151 166 168 176 191 190 194 +16%173 183 126 117 71 54 103 106 94 103 15 23 83 58 67 74 65 17 51 204 118 133 42 90 88 87 92 102 109 117 125 Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1FY11/17FY11/18FY11/19FY11/20FY11/21FY11/22* Net sales from premium charges of Money Forward for XX, which targets financial institutions, have been revised retroactively since charges will be recognized in X domain from FY11/22.X domainDriving Digital Transformation of Banks and Their Customers via Money Forward Fintech Platform32Platform that can accumulate and analyze asset data and settlement data for corporate financial services and link them to third parties.DeliverConnected servicesAnalyzeAnalysis platformAccumulateCloudCollectAggregation platformServices for customersBank APassbook appBank BCorporate portalLendingSecurities company COther appsLPSWALLETserviceAdvertisingservicechatbotCloudaccountingCRMVideocallFinancingmodelChatserviceServices of partner companiesData analysis platform (X Insight Marketing)Database (X Cloud Storage)ID/authentication platformAccount aggregation platform(X Business Aggregation)Connected services(2,590+*1)Banks, securities, credit cards, electronic money, debit cards, points, e-commerce sites, etc.*1 As of February 28, 2022.X domainContinued Expansion of Service Lineup33Number of services reached 74 in response to heightened demand for digital transformation among financial institutions. Number of services*1Major co-creation projects for individual customers 635945297471Jointly developed an advising function of the app for customers registered for loan serviceCo-developed a PFM app linked to various NTT DOCOMO servicesau PAY “Money Management”Jointly developed a function for managing accounts information in the au PAY appAsset management app that supports users’ future asset formation through visualization of asset lives, centralized asset management and asset diagnosis functions.FY11/17FY11/18FY11/19FY11/20FY11/21FY11/22 Q1endendendendendendOffering the account aggregation function to their official app. Support UI/UX design to meet customer needs.*1 Number of services provided by X domain; X domain customers include non-financial institutions such as NTT DoCoMo and KDDI.X domain34Enhanced DX Solutions for Corporate Customers of Financial Institutions, Aiming to Raise the Ratio of Recurring Revenue to Total Sales to 60%To sustain strong growth, we aim to raise the share of services for corporates among total net sales to over 30% (vs. 10% in FY11/21), and the share of recurring revenue to over 60% (vs. 36% in FY11/21) by FY11/24.Service OverviewAdvantagesClients*1Corporate PortalMembership portal site for corporate and sole-proprietor customers; jointly developed with NTT DATAIn-house/ Joint DevelopmentBFM(Business Financial Management)Service for corporate customersof financial institutionsDXF(DX Portal for SMEs) A portal service for SME customers of financial institutions to support their DX.Unit(Online Service of THE BANK OF FUKUOKA)Providing a data aggregation technologyof multiple financial institutions.Centralized management of information on deposits and withdrawals/deposits in multiple accountsAbility to conduct wide-ranging transactions, including the review of electronic documentsCreates customer contact points onlineBank of Yokohama, Hokuriku Bank, Nishi-NipponCity Bank, Senshu Ikeda Bank, and San-in GodoBankCentralized management of information on deposits and withdrawals/deposits in multiple accountsOkazaki Shinkin Bank, Kyoto Shinkin Bank, andTama Shinkin Bank••••••Automatically updates account balances and statementsEnables download of statements in CSV format• Digital services with comprehensible and intuitive user interface and experience (UI and UX) for daily operations, including communication tools, and workflow and attendance management.Senshu Ikeda Bank, Iyo Bank, Gunma Bank, Bank ofSaga, Shikoku Bank, Shizuoka Bank, Joyo Bank, DaishiHokuetsu Bank, Tama Shinkin Bank, Chiba KogyoBank, Chugoku Bank, Tokushima Taisho Bank, FirstBank of Toyama, Nagano Bank, Nishi-Nippon CityBank, Hachijuni Bank, Hirogin Holdings, Fukuho Bank,Yokohama Shinkin Bank, etc.••Corporations and sole proprietors who do nothave an account with the Bank of Fukuoka canapply for loans.Businesses are able to raise their funds online smoothly.Fukuoka Bank*1 Regarding DXF, a DX portal for SMEs, financial institutions that have decided to introduce or are considering introducing it are listed as clients.Finance domainQuarterly Net Sales of Finance Domain36The invoicing and settlement BPO business (recurring revenue) maintained a high growth rate of 53% YoY. Non-recurring revenue saw an accelerated growth of 28% YoY by enhancing the sales and screening structures of the accounts receivable financing business. Net sales of Biz Forward, Inc. was recorded from Q1.（¥ mn）300■Recurring Revenue□Non-Recurring Revenue250200150100500YoY+35%256（YoY）177+28%22719317619819019019119415713313813912612214711912510293777458362214173134833142233717161623283236435259637079+53%Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1FY11/17FY11/18FY11/19FY11/20FY11/21FY11/22* Recurring revenue includes monthly fixed fees, and settlement and associated fees of Money Forward Kessai. Non-recurring revenue includes net sales of Money Forward Early Paymentand Money Forward Synca, Inc., as well as postage fees of Money Forward Kessai.Finance domainInitiated Business Alliance with Toppan37Provides billing and settlement agent service platform of Money Forward Kessaifor Toppan Inc.’s customers to promote efficiency in settlement operations. Conventional transactionsBuyerSellerUsing t-billingBuyerCredit screening and invoicingMakes paymentSellerRequests credit screening and invoicingMakes paymentFinance domainInitiated Business Alliance with SG Systems38Started providing SG Deferred Payment Powered by Money Forward Kessaito customers of Sagawa Express Co., Ltd. and other companies of SG Holdings. The service meets requirements of the revised Electronic Books Preservation Act and helps promote remote work.From Credit Screening to Payment ManagementMakes orderDelivers goodsBuyerRequests InvoicingMakes paymentSellerMakes PaymentSends InvoiceCredit screeningBPO of invoicingCollectspaymentConfirmspaymentService seller: SG SYSTEMS Co., Ltd.Service provider: Money Forward Kessai, Inc.Progress on Growth StrategyGrowth Strategy401234Superior Back-office SaaS Platform with Differentiated Go-to-market StrategyMultiple Avenues for Future Growthwith Significant SynergiesDisciplined M&A Strategy with Proven Track RecordLeverage Existing Assets to Create New OpportunitiesGrowth Strategy411234Superior Back-office SaaS Platform with Differentiated Go-to-market StrategyMultiple Avenues for Future Growthwith Significant SynergiesDisciplined M&A Strategy with Proven Track RecordLeverage Existing Assets to Create New OpportunitiesBusiness domainProduct Lineup to Address Various Companies42Expanding product lineup to target medium-sized / pre-IPO and listed companies, in addition to sole proprietors and SMEs, taking advantage of the strong product development capability.Sole ProprietorsFor sole proprietorsSMEsFor SMEsMedium-sized / Pre-IPO companiesListed CompaniesFor Medium-sized / pre-IPO, and listed companiesCloud Tax ReturnCloud AccountingCloud Accounting PlusFor every company sizeCloud InvoiceCloud ExpenseCloud PayrollCloud SocialInsuranceBoxCloud Tax AdjustmentCloud Attendance CloudContractIT Management CloudMainly for accounting officesMainly for medium-sized companiesAutomated BookkeepingCashflow Analysis and Budget ControlCloud Fixed AssetCloud Receivable BillingCloud HR DatabaseCloud Payable ManagementCloudBusiness domainProduct Lineup that Covers the Four Back-Office Areas of Accounting, HR, Legal, and IT43Automatically obtains deposit/withdrawal data Makes payment request Automatically obtains transaction detailsAutomatically obtains deposit/withdrawal dataOnline banking and credit cardsReceivable dataCloudReconciliation dataCloud Receivable BillingCash reconciliation/receivable managementAccounting dataTransaction detailsCloud Accounting PlusTransaction detailsExpense dataFinancial dataStores dataCloud BoxCloud ExpenseCloud Payable ManagementCash flow analysis and budget controlPayable dataCloud Fixed AssetsCloud Social InsuranceCloud PayrollCloud AttendanceCloud Tax AdjustmentContract dataCloud ContractCloud HR DatabaseIT Management CloudInternal AI chatbotJournal dataPayroll and other HR dataAttendancedataEmployee dataPayroll and other HRdataContract dataEmployee dataMoney Forward Cloudseries takes appropriate security and internal control measures(SSO authentication)AccountingHRLegalITBusiness domainAdding Value Through Continuous Product Enhancements (1/2)44Additional function in STREAMEDfor sharing evidenceEnhancement in function for entering transfer slipCloud AccountingCloud AccountingCloud BoxEnables user of Money Forward Cloud Accountingand Money Forward Cloud Boxto easily retrieve files attached in STREAMED, a service that automates journal entries of paper-based evidence. Also meets requirements of the revised Electronic Books Preservation Act.Raised accuracy of error identification in Money Forward Cloud Accountingby automatically displaying a message when an error is detected in data entries of transfer slips.Business domainAdding Value Through Continuous Product Enhancements (2/2)45Function for automatically loading contracts, etc. attached to emailsMoney Forward Cloud Receivable Billing for SalesforceCloud ContractCloud Account ReceivablesEnables loading contracts and other documents attached to emails and storing them on our service, making it easier to centrally manage digitized contracts.Enables end-to-end management of sales and receivables by loading client information inSalesforceto Money Forward Cloud Receivable Billingvia API.Business domainUniquely Positioned as a Highly Flexible Cloud-based ERP46Flexibly accommodates changes in operation flows and systems of rapidly growing companies.Our strength lies in enabling phased or partial implementation without largely altering users’ existing operations.Wide Range of Product Line-upPhased or Partial ImplementationHigh ScalabilityCovers end-to-end back-office operations, including areas of accounting and finance, HR, and legal affairs. Ranging from processing contracts, issuing invoices, and managing receivables, to accounting.Adopts an architecture that allows partial or phased system implementation, for example, starting with only expense module, or only payroll and attendance modules.Is highly scalable due to seamless integration among modulesand API connections with third-party services.Business domainEffective Market Strategy Depending on the Customer Segment47Accounting Firms& Their ClientsSMEsMedium to large-sizedCompaniesSole ProprietorsCustomer SegmentAccounting / Invoice / HR etc.Cloud-based Bookkeeping ServiceKey ProductsGo-to-marketAccounting Plus / Invoice / Payroll / Expense / ContractCloudCash Reconciliation and Receivable ManagementAI Chatbot for EmployeesDirect Sales /Partner SalesAccounting / Invoice / HR etc.Tax Return etc.Direct SalesOnline SubscriptionOnline SubscriptionKey UsersAccountantsCEO / CFO / AccountantsAccounting Dept / HR Dept / Admin Dept / Sales DeptSole Proprietors / AccountantsKPI*1ARR : ¥ 8,727 million（YoY+47%）# of Customers：93,803（YoY+27%） / ARPA : ¥93,031（YoY+15%）ARR：¥1,264 million（YoY+35%）# of Customers: 107,886（YoY+34%）ARPA : ¥11,715（YoY+1%）*1 As of Feb 28, 2022.Business domainKeyword Searches*1 for “Money Forward Cloud” Increased Significantly by Promoting Brand Awareness48Keyword searches (from October 2021 to March 2022)1.4-fold*2TV commercialsbegin(TV commercials)2021年10月 2021年11月 2021年12月 2022年1月 2022年2月 2022年3月Oct. 2021 Nov. 2021 Dec. 2021 Jan. 2022 Feb. 2022 Mar. 2022(Leaflet resembling a lyric card)(Digital in-taxi ads)*1 The monthly pageviews of the Money Forward Cloudwebsite (biz.moneyforward.com domain) via a keyword search (for Money Forward Cloud in Japanese).*2 Comparison of the total number of keyword searches from October 1, 2021 to December 31, 2021 and the same from January 1, 2022 to March 31, 2022.Business domainStrong Partnerships with Accounting Firms49Focusing on helping accounting firms and their clients succeed, working through branches across Japan. 71%* of Japan’s top 100 accounting firms have already introduced our cloud accounting modules.HokkaidoTohokuAreaKantoKoshinetsuAreaTokaiHokurikuAreaKansaiAreaChugokuShikokuAreaKyushuArea* As of February 28, 2022. Calculated by Money Forward, Inc. based on “Top 500 Accounting Firms” in 2019 by Monthly ProPartner.Business domainEnhanced Information Distribution to Accounting Firms and Promoted Adoption of Money Forward CloudRanked No.1*1 in keyword searches.50*1 As of February 22, 2022.Business domain51As a Cross-Divisional Project, Enhanced Both Products and Marketing in Response to the Electronic Books Preservation Act and Digital Invoice SystemProduct developmentMarketing initiatives••Released functions for attaching evidence and correcting and deleting journal entries in tax return and accounting modules, in response to revision of the Electronic Books Preservation Act.Strengthened link with STREAMED, thereby offering end-to-end support, including for cloud storage of paper-based evidence.• Actively held seminars to share know-how on responding to law revisions.•Prepared and distributed a manual (white paper) explaining measures in more detail.Growth Strategy521234Superior Back-office SaaS Platform with Differentiated Go-to-market StrategyMultiple Avenues for Future Growthwith Significant SynergiesDisciplined M&A Strategy with Proven Track RecordLeverage Existing Assets to Create New OpportunitiesBusiness domain53Enhanced Functions in Money Forward IT Management Cloudto Reduce Hassle and Unnecessary Tasks in SaaS ManagementReleased an employee offboarding function (β) *1 that offers end-to-end processing of SaaS accounts of resignees, from detection and notification, to deletion.Can delete accounts with just three clicksIT Management CloudReleased employee offboarding flow (β)Detects all accounts of resigneeSends notification on SlackCan delete accounts with three clicksPatent pending*1 Patent pending.Business domainHeld BOXIL SaaS AWARD 202254Received applications from 289 services, marking a record high.*1 Contributed to raising recognition of SaaS, with a total of 40 press releases being issued by applicant companies after the award-winning services were announced.Will continue to work toward resolving marketing issues of all SaaS companies under the mission “for SaaS.”Best SaaS in JapanCase Study and RankingSaaS Award 2022Startup Award, Small- and Medium-Sized Business (SMB) Award, Large Enterprise Award, SaaS Integration (API) Award, AI and IoT SaaS Award, Global Award, and Product Development AwardSaaS Trend 2022Security Trend 2022, Communication Trend 2022,No Code and Low Code Trend 2022, Big Data Trend 2022, SME Back-Office Trend 2022, Retail DX Trend 2022, and Vertical SaaS Trend 2022BOXIL General RankingCollaboration, Marketing and Sales, Back Office, and HR*1 Total number of services. Some companies submitted applications for multiple services.Creating Unique Value Through Inter-Domain Synergies55Business domainSaaS Marketing PlatformX domainHome domainRefers sole proprietorCustomers (Tax return)▶P.56Business domainSaaS Applications for back-office operationsCloudIT Management CloudRefers corporate customersFinance domain▶P.57Offers OEM to financial institutions▶P.58Connects and offers functions of services for corporates Refers corporate customersRefers financial institutionsOffers OEM to financial institutionsMarketing support and collaborationMarketingsupport and collaborationBusiness domain56The Number of Users Who Also Use Money Forward MEIncreased by 1.5-fold YoY.The Money Forward MEfunction for automatically loading deposit/withdrawal data to Money Forward Cloud Tax Returnwas received favorably.Users who also use Money Forward ME*1Users who also use Money Forward ME107,866 80,448 (Users)120,000100,00080,00060,00040,00020,00001.5-fold+50%YoY25,058 FY11/21Q137,661 FY11/22Q1*1 The number of users who use Money Forward MEamong paying users of Money Forward Cloud Tax Return.Enables Automatically loading deposit/withdrawal data from Money Forward MEto Money Forward Cloud Tax Return.X domain57Jointly Developed Smart Life Designer, the First App Offered by Sumitomo Mitsui Trust Bank, with IBM Japan.Will promote app installation and offer simulations and information on wealth formation to individual users, including customers of Sumitomo Mitsui Trust Bank, Limited, and employees of companies participating in the defined contribution company pension plan provided by the bank.123Simulation FunctionEstimates necessary funds for one’s future by simply entering one’s family structure, income, and residence status in two steps.PFM FunctionVisualizes personal finances and assets by connecting with bank accounts, credit cards, defined contribution pensions, and other financial services.Information Distribution FunctionProvides information specific to trust banks that can help users think about their wealth formation and life plans.X domainPlanning to Release DXF, a DX portal for SMEs, This Summer, 19 Regional Financial Institutions Are Expected to Participate *158Will promote DX among SME clients of financial Institutions by providing digital services with comprehensive and intuitive UI and UX that can be used in daily operations.Overview of DXF(DX portal for SMEs)Regional financial institutions slated to participateFinancial institutions promote DX of regional SMEsSimple and affordable digital servicesWorkflowScheduleEmployee listTask mgmt.*1 As of February 24, 2022.Financial institutionsSupport in implementation and operationSMEsRegion-specific contentsSupporting first step in digitalization of regional SMEs by collaborating with regional financial institutions.Growth Strategy591234Superior Back-office SaaS Platform with Differentiated Go-to-market StrategyMultiple Avenues for Future Growthwith Significant SynergiesDisciplined M&A Strategy with Proven Track RecordLeverage Existing Assets to Create New OpportunitiesOur M&A Strategy and Track Record60Business AreaStrategyTrack Records1Expansion of Product Line-upBusiness / Back-office SaaS+HomeBusinessUpsell products to existing customers (accounting firms and corporates) for ARR expansionBusinessExpand range of best-in-class solutions to further enhance line-up to medium to large-sized/pre-IPO companies and listed companies(November 2017)(July 2018)Cloud(October 2020)(December 2021)NewNewHomeExpand financial services and enhance value proposition(Contract signed in April 2022)(March 2022）*Susten Capital Management Inc. is an equity method affiliate2Expansion of TAM(Geographical Expansion)Access to cloud back-office SaaS market in SEAMultiple follow-on investments since January 2018.(June 2021)(September 2021)* We hold minority stakes in Mekari, FlowAccount, and Bizzi.Business / SaaS Marketing3Expansion of TAM(Business Area Expansion)Enter SaaS marketing business which has large market potential(February 2020)HOME domainExpanded Alliances, Including M&As, at an Accelerated Pace61With the aim of resolving financial issues of users, various service developments and alliances progressed steadily in a business realm where the total addressable market (TAM) is over ¥800 billion*1.▶P.68Operates cowcamo,a distributionplatform for existing and refurbishedhomes, with over 270,000 registered users.Released Money Forward Housing.Online provider of life insurance, with over 470,000 contracts.The number of assessments conducted for reviewing insurance has exceeded 36,000.FPIFA▶P.62,63Connected IFAs (i.e., asset management advisers) in addition to FPs to Money Forward FinancialPlanningto provide free consultation ranging fromlife planning to asset management.Nexsol Co., Ltd., which provides an FP consulting service, decided to join the Group.FP/IFA Consultation¥70 billionUserAssetManagement¥180 billionProvides Japan’s first fully pay-for-performance automated asset management service SUSTEN.Additionally invested to convert it into an equity method affiliate to further accelerate business alliance.▶P.64,65RealEstate¥80 billionInsurance¥200 billionTax Return¥70 billionElectricity¥100 billionEnables tax return via smartphone appSeamless data integration with Money Forward ME.The number of users who also use Money Forward ME increased by 1.5-fold YoY.Through the collaboration, users can subscribe for electricity 3% cheaper than the standard prices offered by incumbent utility companies.*1 Including TAM of PFM services (¥200 billion). TAM of tax return service is not included as it’s included in that of Business domainHOME domain62Nexsol, Which Provides an FP Consulting Service, Decided to Join the GroupAiming to improve user experience and expand the user base of financial services by partnering with Nexsol Co., Ltd., which has expertise in financial consulting using Money Forward MEdata.Corporate OverviewCompany nameNexsol Co., Ltd.Date establishedJuly 3, 2014HeadquartersChiyoda-ku, TokyoOfficesTokyo, Kanagawa (Yokohama and Hiratsuka), Shizuoka, Nagoya, Kobe, and FukuiEmployees51 (as of March 31, 2022)Operating results*1Net sales: ¥538 millionOperating profit: ¥42 million(FY6/21)Capital¥1,000,000・ Life planning and financial asset management Businesses・ Inheritance planning・ Corporate risk management and business ・ Professional service firm network and insurance designsuccessionagent sales*1 Balance sheets will be consolidated from Q2 and profit and loss from Q3 of FY11/22.Representative Director Michiteru KokatsuEngaged in financial planning and asset management advisory services with a focus on risk management at a foreign-affiliated insurance company. Launched a startup with the desire to provide optimal proposals to customers.The company now has branches across Japan, including in Tokyo, Yokohama, Hiratsuka, Shizuoka Prefecture, Nagoya, Kobe and Fukui. Engages in consulting and advisory services as a financial planner and actively holds financial seminars.Features of Nexsol Co., Ltd.123Conducts consultations on financial planning by actively utilizing Money Forward MEdataHas a nationwide network of customers, FPs, and financial expertsOffers wide-ranging support in the area of finance, including insuranceJointly Enhancing Usability of Money Forward Financial Planning63Aiming to enhance value to users by combining personal finance and asset data retained by Money Forward with the information accumulated through consultations by Nexsol.Users with various concernsVague InsurancePost-retirement anxietiesfinancesConsultants of Nexsolspread out across JapanFinancial PlanningOffers various financial planning services through Money Forward Financial Planning1Further promotes alliance for Money Forward Financial Planning2Proposes our life insurance solutions and expands of user base3Proposes our other financial servicesto usersTakes notes onMoney Forward MEFinancial life plan simulationConsultation via chatsInsurance policy reviewElectricity plan reviewAutomatic investmentAdvice on PFM• Simulates financial life plans using Money Forward MEdata.• Accumulates information obtained during interviews on Money Forward ME, with the aim of raising convenience for users and work efficiency of FPs.• Offers optimal proposals to users by reinforcing the function for insurance policy review with the new FP consultation function. • Aims to expand user base by promoting sales of life insurance solutions to customers of Nexsol.• To address issues of users that were presented during FP consultations, proposes optimal services not only related to insurance but also among the various other services that Money Forward, Inc. can introduce and provide (e.g., electricity, asset management, and advice on PFM).HOME domain64Additional Investment in Susten Capital Management, Provider of an Automated Asset Management Service*1 Susten Capital Management Inc. will utilize procured funds to accelerate service developments, including for the release of smartphone apps. Will continue to jointly develop functions catering to users of Money Forward ME, which is connected to data of users’ assets totaling approximately ¥18 trillion.*2Can enjoy benefits from global economic growthFeatures of SUSTENTrusting global economy-typeSpartan-typeContinuity and fluidity-typeHedge fund-typeStable balance-typeFlexible and defensive-typeTraditional theory-typeModernist-typeIdealist-typePursues absolute returns, which are not affected by the economy• Offers a total of 36 portfolios categorized into nine types according to the needs of each user. This includes portfolios based on an absolute return investment strategy (which are less susceptible to fluctuations in the stock market) that are difficult to provide in incumbent wrap accounts or through robo-advisors.• Provides the world’s top-class diversified investments by conducting in-house R&D of investment models and combining the latest financial engineering theories with machine learning.Keeps risks lowand seeks to preserve assets*1 Money Forward invested ¥0.65 billion, with accumulated investments totalling ¥1.05 billion. After this additional investment, Money Forward will hold approximately 16.6% of the shares of Susten, and It will be an equity method affiliate. *2 Total financial assets in accounts connected to Money Forward MEand services for individuals provided by Money Forward X. As of March 23, 2022. HOME domainThree Strengths of Susten65Provides sophisticated investment services, traditionally only offered to institutional investors, to individual users at a low price. Aims to “create a sustainable society where everyone can live with peace of mind.”Financial Engineering Theories and Machine LearningSeeks to gain profits while also protecting assets with proprietary investment strategies.Low-Cost SchemesPure Performance FeeHas adopted the first system in Japan*1in which the company sets up and manages its own funds, striking a good balance between cost effectiveness and flexibility.As Japan’s first asset management service *2 based on a performance fee-only structure, it enables users to easily start and continue investments.*1 Japan’s first service in which the discretionary investment business that manages investment accounts sets up and manages its own investment trusts (based on research by Money Forward, Inc. and Susten Capital Management Inc.).*2 Japan’s first discretionary investment service offering global diversified investments that has adopted a performance fee-only structure and does not charge a base fee (based on research by Money Forward, Inc. and Susten Capital Management Inc.).Business domainProgress in HiTTO’s PMI66Actively collaborated in sales and marketing as well as product development.Collaboration in product developmentCollaboration in sales and marketing•The tech lead of HR service of Money Forward Cloudjoined HiTTO Inc. to lead post-merger integration (PMI) and has already recruited six engineers.• Collaborates with the AI Forward Division of Money Forward, Inc. to promote R&D of HiTTO’s common AI model.• Holds a joint seminar every month, with more than 100 participants transferred from leads of Money Forward.“HiTTO Business Division” was set up within Money Forward to jointly promote proposal activities.•Growth Strategy671234Superior Back-office SaaS Platform with Differentiated Go-to-market StrategyMultiple Avenues for Future Growthwith Significant SynergiesDisciplined M&A Strategy with Proven Track RecordLeverage Existing Assets to Create New OpportunitiesHOME domainReleased Money Forward Housing in Collaboration with TUKURUBA68Enables users to more easily consider when to sell their property based on their mortgage balance through a simple property price valuation.•In addition to offering instant AI-based valuations, a professional agent of TUKURUBA Inc. assesses real estate value taking its interior into consideration, based on photos submitted online.• By connecting mortgage information to Money Forward ME, data is automatically reflected, allowing for smooth simulations.HOME domainAdded Smartphone Expense Review to the Money Forward Fixed Cost ReviewSeries on April 1369Helps users improve their personal finances by suggesting optimal smartphone plans.123Suggests the best dealfrom 100+ plansEnables finding the perfect plan considering user’s preference for connectivity qualityCan recommend family plans with multiple lines (up to four lines)Other InitiativesIssued Integrated Report and ESG Data (Japanese and English) Today (April 13)71Integrated Report 2022 elaborates further on our thoughts regarding sustainability and on our value creation process. We have also disclosed ESG data, including specific figures in the areas of HR and governance.*Figures shown above are as of November 30, 2021.Established the Sustainability Committee72Established the Sustainability Committee to bolster efforts in sustainability through holding regular discussions with external directors and senior executives of each business division.Money Forward, Inc.Board of DirectorsCooperateLiaisons within the GroupReports statusSustainability Committee● ParticipantsChairperson: Representative Director, President and CEOMembers: Executive Officer/Head of Sustainability and persons appointed by Board of Directors* External directors and senior executives of each business division also participate as necessary.Monitors delegated initiatives● MeetingsBimonthlyCommittee’s OfficeEstablishment of Council of External Officers73Enhance monitoring and supervision of the management by regular discussion with the external officers (external directors and external members of the audit and supervisory board) .Corporate Governance Structure（As of February 21, 2022）Council of ExternalOfficersNewGuidance for FY11/22 on and laterPolicy for Medium-Term Growth Investment and Guidance for FY11/2275Aiming to sustain a growth rate of 30 to 40% in net sales.In particular, we will focus on raising recurring revenue represented by SaaS ARR and accelerate upfront investments mainly in Business domain. Maximize cash flow over the medium to long term while making disciplined investments.Net Sales CAGR+30%～+40%Forecasts for FY11/22⚫ FY11/22 consolidated net sales are expected to be ¥20.32–21.89 billion (+30 to 40% YoY), with Q2 net sales projected at ¥4.75 to 5.07 billion (+19% to 27% YoY), and Q2-end SaaS ARR at ¥13.58 to 13.9820,322～21,886（Lower end – Upper end）billion (+34% to 38% YoY).15,633⚫ In FY11/22 Q2, plans to spend ¥1.6 to 1.8 billion on 11,3187,157（¥ mn）1,5422,9004,595advertising and promotion and expect EBITDA to fall between minus ¥(1.4) to (1.9) billion.⚫ Regarding profit/loss, we will continue to disclose projections for the following quarter.16/11期17/11期18/11期19/11期20/11期21/11期22/11期23/11期24/11期（単体）（連結）（連結）（連結）（連結）（連結）（連結）（連結）（連結）* Chart above is created by projecting annual growth rate of net sales at +35%.FY11/22 Earnings ForecastSaaS ARR at FY11/22-end is expected to be ¥15.7 to 16.8 billion (+40 to 50% YoY).76(¥mn)18,00016,00014,00012,00010,0008,0006,0004,0002,0000Home :premium chargesBusiness :solo proprietorsBusiness :corporatesX :recurring revenueFinance :recurring revene4,164 71 346 2,383 472 892 2,677 10 315 1,395 314 643 15,718–16,841(Lower end–Upper end)370 1,029 +31% or more+39% or moreFY11/22 Forecasts⚫ Place top priority on boosting SaaS ARR, and accelerate upfront investments, especially in Business domain. Aim to achieve ¥20 billion in SaaS ARR during FY11/23.10,853 +47% or more⚫ FY11/22-end ARR of corporate customers in Business domain is projected to exceed ¥10.9 billion (+47% YoY or more).⚫ The upside of SaaS ARR (difference between lower end and upper end) is assumed to mainly consist of ARR from corporates in Business domain.1,379 +26% or more2,087 +20% or more⚫ Will maintain soundness in unit economics while making agile investments in recruiting and marketing. Specifically, customer acquisition cost (AC) payback period*1 is anticipated to be between 24 and 36 months.11,227 283 755 7,374 1,092 1,724 8,439 186 635 5,381 857 1,380 6,319 99 474 3,827 818 1,100 FY11/17-endFY11/18-endFY11/19-endFY11/20-endFY11/21-endFY11/22-endResultsResultsResultsResultsResultsPlan* Net sales from premium charges of Money Forward for XX, which targets financial institutions, have been revised retroactively since charges will be recognized in X domain from FY11/22. There is no impact for consolidated net sales and ARR.*1 See p.92 for details.FY11/22 Net Sales Forecast by Each Business Domain Based on Lower End Projections77Net sales in SaaS applications for back-office operations are expected to grow rapidly by over 39% YoY.（¥ mn）Business（バックオフィスSaaS）: SaaS applications for back-office operations20,000Business（SaaSマーケティング）: SaaS marketingHomeX15,000Finance10,0005,00007,157 339 1,005 1,634 4,166 15,633 7691,8822,4141,9708,58911,318 743 1,422 1,845 1,251 6,048 YoY+30%or more20,322 9501,997+24% or more+6% or more2,978+23% or more2,435+24% or more11,952+39% or more* Net sales from premium charges of Money Forward for XX, which targets financial institutions, have been revised retroactively