96
Financial Results for the 2 nd Quarter of Fiscal Year Ending November 30, 2020 Money Forward, Inc. July 15, 2020
Financial Results for the 2nd Quarter of
Fiscal Year Ending November 30, 2020
Money Forward, Inc.
July 15, 2020
1Contents
Money Forward Business P.23
Money Forward X P.43
Money Forward Home P.36
Financial Performance in FY11/20 Q2 P.15
Appendix P.62
Money Forward Finance P.48
Our Business P.6
Other Strategic Initiatives P.54
Highlights P.11
Introduction P.2
Introduction
3
Prioritized the health of customers and all employees.
Events and meetings were conducted online.
• Limited non-essential and non-urgent domestic and overseas business trips
• Adopted remote work as a general rule from
March 26
• Cancelled/postponed events/seminars and switched to online events
• Rescheduled interviews and switched to
online meetings
• Proposed SaaS services to promote DX for
back office operations
• Held financial results briefing online
• Continued the above measures
• Online event for accounting and tax
professionals will be held online
• Continued the above measures
• Offered remote work allowance
• Held group-wide online meeting
Customers/Business Partners Internal/Employees
April
May
June• More than 5,000 participants signed up for
the online exhibition “BOXIL EXPO 2020”
July• Adopted “commute 1 day per week”
policy
Our Response to COVID-19
4ESG Initiative – Promoting DX to Society（1/2）
Tackle the social issues by promoting the digitalization such as easing the
money related concerns of individuals and corporates, proposing the change
of conventional operations which can be barriers for remote work.
Launched a Website "Summary of Relief
Programs for COVID-19”.
Released Proposal Document Aiming Paperless and Stamp-less Society
• March 31st: Launched a website posting
information on subsidy and grants for corporates.
• April 14th : Launched a website posting
information on life support and benefits for
individuals.
• May 1st: Released a proposal document which
claims that the guideline for electronic contract
and electronic signature is needed in order to
transfer smoothly for companies from the
conventional operations with papers and
stamps to digital operations.
• June 19th: Cabinet Office released “Q&A
regarding sealing”.
Summary of relief programs for COVID-19
We propose paperless and stamp-less society.
5
Promoting the remote work for back office operation by not only offering
cloud services but also offering company’s know-how on operation
improvement.
“Survey on Remote Work ofAccounting Department”
Promoting Remote Work for Back Office
by Sharing Our Operation
• More than 80% of accounting staff are still
commuting even after the emergency declaration.
• More than 40% are commuting for paperwork such as
financial closing and invoice related work.
• Our Q1 quarterly closing and monthly closing were
prepared remotely in early March.
• Shared the operation of our accounting department
on the website.
ESG Initiative – Promoting DX to Society（2/2）
How we closed the quarterly earnings with remote work
5 days/week17%
3 - 4 days/
week16%
1 - 2
days/week1
4%
1 to 2 days/month
3%
Remote work is
not introduced
50%
Our Business
Mission
Money Forward. Move your life forward.
'Money' may be nothing more than a tool for living.
However, money is also essential for guarding ourselves and our families, as well as for realizing our dreams.
We contribute to building a better society by providing services that enable users to “see money in a positive
light and broaden their range of opportunities,” thereby significantly enriching their lives.
8Mission / Vision / Value / Culture
9Nationwide Partnership
We work with wide range of partners nationwide such as accounting and
other professional firms, chamber of commerce, financial institutions, etc.
No. of Certified Members: (Accounting firms and Labor and Social Security Attorney firms)
4,200+*1
No. of Chambers of Commerce andIndustry that We Partner with:
101*1
No. of Financial InstitutionsServed with Our Products:
36*1
# of Financial Institutions with API/Scraping connections
990*2
*1 As of end of May 2020. *2 As of May 16th, 2020. Counting financial institutions (including Shinkin Banks, Labor Banks and Agricultural and Fishery Cooperative Savings Insurance Corporations) that are determined to have API connections or web scraping connections with contracts. The number of scraping is 19.
10Our Services
SaaS Marketing Platform
Inside Sales support
for ○○
Digital Passbook
MF Unit
BFM
Cloud Consulting for Back Office Operation
Cloud Accounting
Cloud Tax Return
Cloud Invoice
Cloud Payroll
Cloud Expense
Cloud My Number
Cloud Attendance
Cloud-based Bookkeeping Service
Cloud-based Business Analysis Tool
SaaS Platform for Back Office Operations
Accelerate business growth.Make everyone’s life
convenient and prosperous.
Create new financial services with partners.
Circulate money towards right direction.
Money Forward. Move your life forward.
Automated PFM Service
Platform for Comparing and Applying for Financial Services
Practical Economic Media
Automated Savings App
Customized Money Forward ME for Financial Institutions and its Clients
Passbook Apps for Financial Institutions and its Clients
Offering PFM Tools within Financial Institutions Apps
Financial Management Service for financial Institutions’ Corporate Clients
BPO and Factoring Service
Financial Advisory Service for Growing Companies
Advising tool on saving and asset management based on the dataof Money Forward ME
Platform for connecting Money Forward ME user with Financial Planner
Cloud
Company Registration
Cloud Social Insurance
Cloud Accounting Plus
Accounts Receivable Financing
Career consulting service specialized in DX field
NEW
Highlights
12
• Q2 YTD consolidated net sales maintained high growth, increasing by +70%*1 YoY to ¥5.21 billion.
• Achieved 45.5% - 47.0% of our full-year sales forecast. （Progress rate for Q2 of FY11/19 was 43% *2.）Full-year forecast remains unchanged.
• Q2 YTD gross profit increased by +98% YoY to ¥3.50 billion. Achieved profitability in EBITDA excluding advertising expenses.
• Q2 Group ARR *3 increased by +64% YoY to ¥8.07 billion.
• Financial impact of the spread of COVID-19 was limited. Continue to accelerate the business to address irreversible structural changes (DX).
• To be contracted with all 125 banks with connections before the deadline in September that is required by revised Banking Act.
Highlights in FY11/20 Q2
*1 Smartcamp Co., Ltd.’s net sales are included from FY11/20 Q1. *2 Ratio is calculated by FY11/19 Q2 YTD net sales divided by FY11/19 actual full-year net sales.*3 Group annual recurring revenue (ARR) is calculated by multiplying Group monthly recurring revenue (MRR) for May 2020 by 12.
13Impact of the spread of COVID-19
Negative financial impact was limited to the expectation as of Q1.
Overall, the customer acquisition is accelerating.
Business
• Customer acquisition through webinar, etc. is accelerating.
• Number of BOXIL users increased significantly owing to the growing
demand for SaaS services.
Home
• Money Forward ME acquired new users at a faster pace.
• Decrease of net sales due to the cancellation/postponement of events
(as announced in Q1).
X• No impact, Q2 net sales marked record highs.
• User acquisition of Passbook Apps is accelerating.
Finance• Applications for MF KESSAI increased but the default rate did not rise.
• Inquiry is increasing at Money Forward Synca.
Impact to Our Business
14Our Direction During and After COVID-19 Outbreak
Financial Institutions
• Accelerate online initiatives such
as online events and webinars.
• Respond to new demands such as
starting online-based job
consulting service.
Home
• Become the platform for
corporates and professionals
to support increasing demand
of DX.
• Offer valuable services to
enhance the productivity and
the profitability of corporates.
Business
• Offer solutions to
accelerate DX of financial
institutions such as
Passbook Apps and BFM.
X• MF KESSAI offers financial function
with rigorous screening.
• Money Forward Synca, Inc.
supports the execution of financing
and IPO of growing companies.
Finance
To address irreversible structural changes, will promote DX for the society by
offering various services such as cloud services for corporates, PFM service
for individuals and solutions for financial institutions.
IndividualsCorporates
Financial Performance in
FY11/20 Q2
16
272 354 401 477 533 599 715 833 853 919 1,159 1,235
1,559 1,675
172 211 212
311 265 304
299
397 370 403
378 521
451 478
65
126 117
173 102 178
97
197 125
263
250
330
235
441
2 3
7 17
36 48
74 93
125
147
227
510 693 732
965 906 1,091 1,130
1,469 1,398
1,661
1,881
2,216
2,394
2,821
0
500
1,000
1,500
2,000
2,500
3,000
FY11/17
Q1 Q2 Q3 Q4
FY11/18
Q1 Q2 Q3 Q4
FY11/19
Q1 Q1
FY11/20
Q2Q2 Q3 Q4
Q2 Consolidated Net Sales Marked Record Highs
（¥ mn） ■Business ■Home ■X □ Finance ■ Other
（YoY）
+82%
+19%
+68%
+206%
YoY
+70%Smartcamp Co., Ltd. which provides
BOXIL joined the Group
Klavis Inc. which provides
STREAMED joined the Group
Knowledge Labo, Inc. which provides
Manageboard joined the Group
* Figures for net sales of “Other” domain are omitted from the graph.
17
1,734 2,119
2,335 2,680
3,146 3,336
3,729 3,972
4,792 4,919
5,922 6,318
7,870 8,069
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Group ARR Maintains High Growth
Group annual recurring revenue maintains high growth (+64% YoY).
（¥ mn）
YoY
+64%
FY11/17
Q1 Q2 Q3 Q4
FY11/18
Q1 Q2 Q3 Q4
FY11/19
Q1 Q2 Q3 Q4 Q1
FY11/20
Knowledge Labo, Inc.
which provides
Manageboard joined the Group
Klavis Inc. which provides
STREAMED joined the Group
Q2
Smartcamp Co., Ltd. which provides
BOXIL joined the Group
* Group ARR is calculated by multiplying Group monthly recurring revenue (MRR) for the last month of each period by 12. *Group MRR includes subscription revenue of cloud services such as Money Forward Cloud of Business domain, premium charges of Home domain, recurring revenue of X domain and revenue of MF KESSAI of Finance domain. Annual recurring revenue includes the result of multiplying net sales of Smartcamp Co., Ltd. by customer retention rate (the ratio of net sales from customers who commenced transactions prior to FY11/19 Q3, to FY11/20 Q2 net sales) from FY11/20 Q1.
18Growth in B2B Net Sales Achieved +88% YoY
BtoB Net Sales
¥4.28billion
+88%Growth
（¥ mn） ■Business ■X ■Finance □ Home
Business
+83%
X
+74%
Finance
+207%
Home
+20%
Business, X and Finance domains maintain high growth. Meanwhile, the
challenge going forward is to boost the growth rate of Home domain.
* Figures for net sales of “Other” domain are omitted from the graph. *BtoB net sales are the sum of net sales from Business, X and Finance domain. * Net sales of Klavis Inc. were consolidated from FY11/18 Q1, Knowledge Labo, Inc. and Wakufuri, Inc. from FY11/18 Q4, and Smartcamp Co., Ltd. from FY11/20 Q1 in
Business domain.
626 1,132
1,771
3,234
192
279
388
675
0
10
122
374
382
570
772
929
1,203
1,997
3,059
5,215
0
1,000
2,000
3,000
4,000
5,000
FY11/17
Q2 YTD
FY11/18
Q2 YTD
FY11/19
Q2 YTD
FY11/20
Q2 YTD
19Gross Profit / EBITDA (Quarterly Trend)
Gross profit and gross profit margin marked record highs.
Achieved profitability in EBITDA excluding advertising expenses.
（¥ mn） □ Gross Profit ■ Gross Profit Margin
Gross Profit EBITDA
（¥ mn） □EBITDA □ EBITDA（excl. advertising expenses）
FY11/18
Q1 Q2 Q3 Q4
FY11/19
Q1 Q2 Q3 Q4 Q2
FY11/20
FY11/18
Q1 Q2 Q3 Q4
FY11/19
Q1 Q2 Q3 Q4 Q1
FY11/20
610 709 672
792 746
1,022 1,220
1,335
1,668 1,831
67%65%
59%
54% 53%
62%65%
60%
70% 65%
0%
20%
40%
60%
80%
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
Q1
Q2
* EBITDA = operating profit/loss + depreciation and amortization + tax expenses included in operating expenses * Tax expenses included in operating expenses is added to EBITDA from FY11/20. The graph above calculates EBITDA for previous terms using the same definition. * Capitalized software for a development project that is expected to generate revenue going forward, owing to continued enhancement of development capabilities.
△82 △55
△225△234
△921
△505
△250
△504△499△477
65 59
△118△150
△354
△226
△8△72
112
342
△1,100
△700
△300
100
20
468 534 588 723 844 979 999 1,133 1,350 1,465
109 143 160
313 308
291 262
370
360 431
75 98 103
153 125
110 101
121
169
179
34 64
115
113 113
123 126
131
144
163
41 46
63
78 101
133 121
148
178
176
154 189
282
293 324
320 338
460 214
202
147 114
106
84
567 279 243
432 612
819
1,029 1,188
1,416
1,757
2,382 2,235 2,191
2,795
3,026
3,435
0
400
800
1,200
1,600
2,000
2,400
2,800
3,200
FY11/18
Q1
FY11/18
Q2
FY11/18
Q3
FY11/18
Q4
FY11/19
Q1
FY11/19
Q2
FY11/19
Q3
FY11/19
Q4
FY11/20
Q1
FY11/20
Q2
Personnel Expenses Subcontract Expenses Comission Fee Rents
Communication Expenses Other Advertising Expenses
Breakdown of Expenses (Cost of Sales & SGA)
Executed cost cutting/budgeting on group-wide basis. Advertising expenses increased due to the continuous investment in Business domain.
（¥ mn）
Other・Decrease in transportationexpenses, meeting expenses.・Deducted the impact of capitalizing software.*1
(¥200 mn)
Personnel Expenses・Increased mainly due to the new hiring before Q1 and the raise in salary.
Subcontract Expenses・Increased due to the development cost of big projects in X domain.
Advertising Expenses・Increased due to the continuous investment (campaign etc.) in Business domain.
*1 Capitalized software for a development project that is expected to generate revenue going forward, owing to continued enhancement of development capabilities. * “Other expenses” include amortization of goodwill, recruiting/training expenses, tax expenses included in operating expenses, professional fees, among others.
21Full-time Employees
Increase from the end of February is mainly the new graduates joined in April.Engineer and designer ratio keeps approximately 40%.
▲ Enhanced engineering structure▲ Assigned most new graduates in Business domain
▲ Enhanced infrastructure/ security
Other Engineer / Designer
Change from FY2/20 End
（＃of People）
* Other Engineer/Designer includes CISO Dept., CTO Dept., Account Aggregation Dept., MONEY FORWARD VIETNAM etc. Corporate includes CEO’s Office, Corporate Planning Dept., Finance Dept., Administrative Dept., Human Resource Dept., Fintech Research Office, etc.
383 406 439
6564
613939
433847
499295
1027476
85691727
779
0
100
200
300
400
500
600
700
800
FY11/19 End
(Consolidated)
FY2/20 End
(Consolidated)
FY5/20 End
(Consolidated)
Business Home X Finance Other Engineer/Designer Corporate
22Balance Sheet
We maintain sound financial base with more than ¥10 billion of
cash/deposits and net assets.
Assets Liabilities / Net Assets
（¥ mn）
Cash and Deposits10,496
Other Current Assets4,288
Non-current Assets6,473
Current Liabilities7,004
Non-current Liabilities3,652
Net assets10,600
Long-term borrowings3,522
Short-term borrowings*3,030
Current portion oflong-term borrowings620
Goodwill2,464
Investment securities2,274
Purchased receivables*
2,212
*1 Recorded at MF KESSAI, Inc.
Money Forward Business
Money Forward Business Highlights in FY11/20 Q2
• Recurring revenue maintained high growth at +76% YoY owing to growth in existing businesses and the acquisition of Smartcamp Co., Ltd.
• Average Revenue per Account (ARPA) rose to ¥62,297 *1 owing to the expansion of the end users of partner accountants.
• Customer Churn Rate was 2.2%*2, rising from Q1 (1.4%*3) due to the seasonal impact of tax return, while improving from FY11/19 Q2 (2.4%*4).
• Monthly Recurring Revenue (MRR) Churn Rate was negative 1.4%*5, achieving a negative churn.
• Since the adoption of the new pricing plan, percentage of annual pricing / Small Business Plan accounts have gradually increased(refer to P28 and after).
24
*1 Annualized figure as of the end of May 2020. *2 The 3-month average up to May 2020. *3 The 3-month average up to February 2020. *4 The 3-month average up to May 2019. *5 The 18-month average up to May 2020. The figure indicates the MRR churn from the beginning of FY11/19 which is before the introduction of new pricing plan. * Please refer to P.75 for detailed definitions of KPIs. Results of Smartcamp Co., Ltd. are not included in the KPIs.
Money Forward Business FY11/20 Q2 KPIs 25
FY11/20 Q1
ARPA ¥61,558*1
Customer Churn Rate 1.4%*3 2.2%*4
MRR Churn Rate - 2.6%*5 - 1.4%*6
FY11/20 Q2
¥62,297*2
*1 Annualized figure as of the end of February, 2020. ARPA as of the end of FY11/20 Q1 excludes seasonal factors of cloud-based bookkeeping service STREAMED. *2 Annualized figure as of the end of May 2020. *3The figure is 3-months average up to February 2020. *4 The figure is 3-months average up to May 2020. *5 The 15-month average up to February 2020. The figure indicates the MRR from the beginning of FY11/19 which is before the introduction of new pricing plan. *6 The 18-month average up to May 2020. The figure indicates the MRR from the beginning of FY11/19 which is before the introduction of new pricing plan. * ARPA is calculated based on ARR of last month of each period divided by number of customers at the end of each period. Number of customers is the sum of partner accountants and corporates and sole proprietors coming from website (paying users). * Please refer to P.75 for detailed definitions of KPIs. Results of Smartcamp Co., Ltd. are not included in the KPIs.
255 314 371 416 518 584 641 693
782 856
1,090 1,139
1,410 1,504
17 40
30 60
16 15 74
140
71 63
69 96
149
171
272 354
401 477
533 599
715
833 853
919
1,159 1,235
1,559
1,675
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
（¥ mn）■Recurring Revenue □Non-recurring Revenue
Net Sales from Money Forward Business 26
FY11/17
Q1 Q2 Q3 Q4
FY11/18
Q1 Q2 Q3 Q4
FY11/19
Q1 Q1
FY11/20
Q2 Q2Q3 Q4
Recurring
Revenue
+76%YoY
Klavis Inc. which provides
STREAMED joined the Group
Knowledge Labo, Inc. which provides
Manageboard joined the Group
Smartcamp Co., Ltd. which provides
BOXIL joined the Group
* Net Sales for Smartcamp Co., Ltd. Q2 was approx. ¥310mn (of which recurring revenue was approx. ¥220mn) * Non-recurring Revenue include: 1) fees for implementation of services, 2) sponsorships and ticket sales of events (e.g.,Bizforward, etc), 3) consulting fees from Knowledge Labo, Inc,. *Recurring revenue includes the result of multiplying net sales of Smartcamp Co., Ltd. by recurring customer rate (the ratio of net sales from customers who commenced transactions prior to FY11/19 Q3 to FY11/20 Q2 net sales) .
Q2 recurring revenue grew +76% YoY, maintaining solid growth.
61,558 62,297
FY11/20 Q1 End FY11/20 Q2 End
30,40733,716
37,12243,210
59,248
0
10,000
20,000
30,000
40,000
50,000
60,000
FY11/15 End FY11/16 End FY11/17 End FY11/18 End FY11/19 End
27
ARPA increased from Q1 owing to the expansion of the end users of partner
accountants.
（Annual / ￥）
ARPA Continues to Increase Steadily
*1 ARPA of FY11/20 Q1 end excludes seasonal factors of cloud-based bookkeeping service STREAMED * Annualized figure as of the end of each quarter/fiscal year.*Please refer to P.75 for detailed definitions of KPIs. Results of Smartcamp Co., Ltd. are not included in the KPIs.
*1
Pricing Plans for SMEs since May 2019 28
Offering Annual/Monthly Prices for Business/Small Business Plan.
Business PlanFor SMEs with complicated
accounting operations/a large
volume of invoices
Small Business PlanFor smaller SMEs
Basic Charge（Pay Annually）
Annual ¥59,760
(= 4,980/month)
Annual ¥35,760
( = ¥2,980/month)
Basic Charge（Pay Monthly）
Monthly ¥5,980 Monthly ¥3,980
Accounting
Department Registration
Unlimited Up to 2 Departments
Bank TransferData Preparation ✔ ー
Invoice
Addition of Members
Unlimited Up to 3 Members
Batch Operation(mail/email) ✔ ー
＊All listed prices are excluding tax.
23%
20%47%
10%
26%
23%
39%
11%
Money Forward Cloud - Sales Mix for SMEs
Since the adoption of new pricing plan, annual pricing ratio has steadily
increased, resulting in a stable customer churn rate. Rise of Small Business
Plan ratio has been gradual along with new customer acquisition.
29
11/18 End(Before Plan Change)
Average Basic Charge*3
¥ 59,348(+52% from 11/18 End)
Average Basic Charge*3
¥57,505(+47% from 11/18 End)
*1 Definition of annual/monthly pricing ratio at the end of 11/18 is based on the number of Money Forward Cloud Accounting paying accounts.*2 ARPA is average revenue (annualized) per corporate account of Money Forward Cloud through web channel. *3 Average basic charge (annualized) is weighted average by number of accounts of each plan. Please refer to P28 for the detail of each plan.
2/20 End 5/20 End
ビジネス年額
5% スモールビジネス年額
9%
ビジネス月額
79%
スモールビジネス月
額…
ビジネス年額 スモールビジネス年額 ビジネス月額 スモールビジネス月額
Annual 43%
ARPA*2
¥39,078
Annual 50%
Business(Annual)
ビジネス年額
5% スモールビジネス年額
9%
ビジネス月額
79%
スモールビジネス月
額…
ビジネス年額 スモールビジネス年額 ビジネス月額 スモールビジネス月額Small Business(Annual)
Business(Monthly)
Small Business(Monthly)
Annual
63%*1
Monthly
37%*1
Opening-up Accounting API
Our cloud-based accounting platform can be connected seamlessly to a
variety of services which support businesses. Delivering higher productivity
and business improvement by visualizing financial data timely.
30
Sales/Stock Management
Purchase Management
Financial Institutions
POS System
Settlement
Financing
Business Analysis
SFA/CRM
Cloud Accounting
Cloud Accounting Plus
Huge Potential for Automation in Payroll/Accounting Area31
* Source：McKinsey & Company “The future of work in Japan”（May 2020）*1 Manually operates machines in predictable environment.*2 Manually operates machines in unpredictable environment.*3 Interacts with various stakeholders (e.g. consumers, customers)*4 Applies expertise for decision making, strategy planning and creative works, etc.*5 Talent management and development.
Processingdata
Collecting data
Predictable physical work*1
Unpredictablework*2
Stakeholder interactions*3
Applying expertise*4
Managing others*5
Sample occupations
Payroll officers & Transaction processors
Legal-support workers Mortgage originators
Production workers Machine operators
GardenersConstruction laborers
Personal caretakers Salespersons
Artists Scientists
CEOProject managers
70%
70% 67%
38%
24% 23%
11%0%
20%
40%
60%
80%
100%
SaaS Marketing Platform BOXIL is Robust 32
With the growing demand for SaaS services, the number of lead generated
on BOXIL offered by Smartcamp Co., Ltd. increased drastically by +52% YoY.
（Number of leads）
• Video distribution system
• Project management/
process management tools
• Electronic signature and agreement
Solution
• Online storage
• Online meeting system, etc.
Items with High DemandTrend of Number of Leads
YoY
+52%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
FY11/19 Q2 FY11/20 Q2
One of the Japan’s Largest Online Exhibitions “BOXIL EXPO 2020”
More than 5,000 participants signed up for “Sales and Marketing Exhibition”
in June. Will hold “IT/SaaS/Remote Work Exhibition” in September.
33
IT/SaaS/RemoteWork Exhibition
2020 Online Exhibition
Sales / Marketing / Finance / Accounting /
General Affairs/Organization / HR/
Collaboration / Remote Work Environment /
Security
Event for Accounting and Tax Professionals
Promoting DX for SMEs together with accounting and tax professionals all
over Japan.
34
Date: July 27th, 2020 1pm-4pm JST (Online Event)
Started Remote Work Campaign
Campaign is targeting new accounts of Money Forward Cloud and offers
¥50,000 worth of Amazon gift card to promote the remote work of back
office operation.
35
*1 Source: “Survey on remote work of accounting finance workers” by MF KESSAI, Inc.* Please refer to the website for the detail of this campaign.
https://biz.moneyforward.com/campaign/telework-subsidy/?internal_source=mfbanner&internal_medium=banner&internal_campaign=telework-subsidy&internal_content=cloud_top
80% of accounting staffs are still commutingeven during the COVID-19 crisis*1.
We want back office workers to work safely from home.To support the introduction of remote work, we started this campaign.
Money Forward Home
37
110 128 139
158 174
199 213 226 244
263 274 287 304
332
0
50
100
150
200
250
0
50
100
150
200
250
300
Net Sales from Premium Charges
Achieved +26% YoY.
Number of paying users increased steadily, exceeding 250,000 *.
* As of end of May
FY11/19FY11/17
Q1 Q2 Q3 Q4
FY11/18
Q1 Q2 Q3 Q4 Q1 Q2
FY11/20
Q1Q2 Q3 Q4
YoY
+26%
Introduced Annual Plan▼
（¥ mn） □Net Sales from Premium Charges ■Number of Paying User
（’000 people)
38
62 83
73
153
92 105
86
172
126 140
103
235
147 146
0
50
100
150
200
Net Sales from Media/Advertising
As expected, Q2 saw a slight decrease in net sales due to the cancellation
of offline events. In Q4, ”Money EXPO” will be held online.
Money EXPO 2017▼
（¥ mn）
FY11/17
Q1 Q2 Q3 Q4
FY11/18
Q1 Q2 Q3 Q4
FY11/19
Q1
FY11/20
Q2Q1Q2 Q3 Q4
YoY
+5%
Money EXPO 2018▼
Money EXPO 2019▼
* Net sales from media/advertising include: 1) advertising sales from MONEY PLUS - practical economic media, 2) sales from events (Money EXPO) and seminars, and 3) sales from other PFM services including Money Forward Money Consultation.
39Money Forward Me Users Exceeded 10.5 Million
Acquired new users at a faster pace. 700k new users were added in Q2.
Accelerated Increase in Number of New Users
0
100
200
300
400
500
600
700
800
(Mar – May 2019)
（1,000 users）
About
500k
About
700k
Latest(Mar – May 2020)
Number of Users Exceeded 10.5 Million
40Contribution to Society with Statistical Data
Providing statistical data to the society to prove social changes by taking
advantage of Money Forward ME.
* Randomly selected Money Forward ME users with permission. Spending items for January to April 2020 that were entered by May 9th were surveyed and analyzed.
Contents
“Clothing / Beauty”
-51%(Apr / YoY）
“Special Expenses” including
furniture/appliances and home/remodeling.
+58% (Apr / YoY）
The largest negative range was on
“Entertainment Expenses” such as
drinks and gifts.
-71% (Apr / YoY）
41Money Forward ME - Connecting with Individual Annuities
Enables users to visualize assets including individual annuities
(annuity certain) through cooperation with life insurance companies.
Plans to expand the number of connections.
* The insurance that can be connected are annuity certain products provided by Nippon Life Insurance Company, annuity certain/life annuity products provided by Meiji Yasuda Life Insurance Company. Depending on the annuity product and contract status, this may not be displayed.* The names of companies, products, and services (including logos, etc.) mentioned in this document are trademarks of the respective companies or registered trademarks of the respective rights holders.
Meiji Yasuda Life Insurance Company Nippon Life Insurance Company
The Dai-ichi Life
Insurance Company, Limited Sumitomo Life Insurance Company
Connected
Plans to Connect
42Expansion of Services by Utilizing PFM User Base
Launched Money Forward Career, an integrated service of life planning and
career support based on PFM data with a focus on personnel involved in DX.
Money Forward X
44
49 55 64 71 79 84 82 79 84 93 99 107 112 125 17
71 54
103
23
94
15
118
42
170 150
223
123
316
65
126 117
173
102
178
97
197
125
263 250
330
235
441
0
50
100
150
200
250
300
350
400
450
Net Sales from Money Forward XBoth recurring and non-recurring revenues reached record highs, achieved
+68% YoY. DX related projects with financial institutions are accelerating.
YoY
+68%
FY11/17
Q1 Q2 Q3 Q4
FY11/18
Q1 Q2 Q3 Q4
FY11/19
Q1
FY11/20
Q1 Q2Q2 Q3 Q4
* Non-recurring revenue from initial development costs are recorded at the time of acceptance by partner financial institution, and not necessarily at the time of servicelaunch.
（¥ mn） ■Recurring Revenue □Non-recurring revenue
45Co-developed an Asset Management App OneStock with Nomura Securities
Supports to form future asset through visualizing asset life in one app and
indicating useful lifespan of assets.
46Launched Asset Management Functions for Iyo Bank Credit-card Loan App
Enables to calculate the projected shortfall based on the amount of
deposits and withdrawals from financial institutions.
* SAFETY is a credit-card loan app co-developed by The Iyo Bank, Ltd. and Accenture Japan Ltd. Enables to borrow money from smartphone with a single tap.
Iyo Bank
47
MF Unit SeriesOffering PFM tools within financial institutions apps
Alliance with Financial Institutions (Apps and Tools)
Money Forward for X SeriesDeveloping customized Money Forward ME for financial institutions and its clients.
Passbook AppsDeveloping passbook apps for financial institutions and its clients
Other Projects
* The names of companies, products, and services (including logos, etc.) mentioned in this document are trademarks of the respective companies or registered trademarks of the respective rights holders. Listed in order of announcement.
SBI Sumishin Net Bank
Yamaguchi FG
Shizuoka Bank
Toho Bank
Gunma Bank
Shiga Bank
Fukui Bank
Okazaki Shinkin Bank
Michinoku Bank
Tsukuba Bank
Sumitomo Mitsui Trust Bank
Sompo Japan Nipponkoa Himawari Life Insurance
Tochigi Bank
North Pacific Bank
Mizuho Bank
JA Bank
JAL Card
Taiko Banka
Sendai Bank
Akita Bank
Awa Bank
Asset Monitoring Unit PFM Unit
Gunma Bank
Toho Bank
Tochigi Bank
Taiko Bank
Tsukuba Bank
Michinoku Bank
Hokuriku Bank
Kyoto Shinkin Bank
North Pacific Bank
Chiba Bank
JA Bank
Shiga Bank
Daishi Bank
Chugoku Bank
Labour Bank
Labour Bank
Hokuriku Bank
Lending Manager (for Docomo)
Advising loan amounts and repayment plans.
au WALLET App (for KDDI)
Visualizing outstanding amount and detailed statement of 2,000+ financial institutions
Money Compass (for Tokai Tokyo Securities)
Provides “asset management functions” for an app offering investment services,
insurance, pension and other functions
SAFETY (for Iyo Bank)
Visualizes deposit balance and transactions including credit card payment and helps
understand future cash shortage.
OneStock (for Nomura Securities)
Visualizes future and current assets and supports financial planning
NEW
Money Forward Finance
49
2 3 7
17 36
48 74
93
125 147
227
0
50
100
150
200
250
FY11/17
Q4
FY11/18
Q1 Q2 Q3 Q4
FY11/19
Q1
FY11/20
Q1 Q2Q2 Q3 Q4
Net Sales from Money Forward Finance
Achieved rapid growth of +206% YoY, owing to expanded provision of OEM
and BPO invoicing of MF KESSAI. Contributing to corporates’ DX
by improving efficiency of settlement operation.（¥ mn）
YoY
+206%
50MF KESSAI Exceeded ¥20 Billion in Total Transaction Volume
Transaction volume doubled in just six months*1 after exceeded ¥10 billion
in total transaction. The number of applications for MF KESSAI Early
Payment, accounts receivable financing service doubled from the end of
last year *2 .
*1 As of end of April 2020. Total accounts receivable transferred to MF KESSAI, Inc. through MF KESSAI (BPO and factoring service) and MF KESSAI Early Payment (accounts receivable financing service). *2 As of April 2020.
51MF KESSAI Entered into a Business Matching Agreement with Financial Institutions
Started offering MF KESSAI to corporate clients of Shizuoka Bank and
Hiroshima Bank. Plans to expand the alliances with financial institutions.
Hiroshima BankShizuoka Bank
Corporate Clients
Offers the services Application
Introduces the services
52MF KESSAI Launched Plan for Subscription Providers
Enables to receive the annual fee of BtoB subscription services before the
payment due.
Supports subscription providers’ growth by BPO and early payment.
53Money Forward Synca Expanded the Service Realm
Launched two new services, unlisted stock sales advisory and career
support to help the startups’ growth.
Unlisted Stock Sales Advisory Service
Career Support Service
Startups
CXO/Candidates of Management
Back office Talents
Support Recruiting
Payment of feeIntroduce buyers*
Introduce sellers*
Transfer of Stock
Payment
Buyer InvestorsSeller Investors
* We will not engage in any activities that fall under financial instruments business. Discussions on the sale will be conducted with the consent of the investor-funded
startups.
Other Strategic Initiatives
55Alliance with Financial Institutions (APIs)
To be contracted with all 125 banks with connections*1.
Building up the biggest account aggregation platform in Japan.
Japan’s top*2 Fintech company in terms of number of referential andmoney transfer API contracts.
Banks Shinkin Banks Labor Banks
Agricultural and Fishery Cooperative Savings Insurance
Corporations
ReferentialMoney
TransferReferential
Money Transfer
ReferentialMoney
TransferReferential
Money Transfer
Individuals 110 1 249 ー 13 ー 617 ー
Corporates 101 8 249 ー 13 ー ー ー
*1 Including provisional and permanent web scraping contracts. *2 Based on the research by Money Forward, Inc.* As of June 16th, 2020. Counting financial institutions (including Shinkin Banks, Labor Banks and Agricultural and Fishery Cooperative Savings Insurance Corporations)that are determined to have API connections or web scraping connections with contracts. The number of scraping is 19.
56Enhancement of Management Structure
Naoya was reappointed as CFO effective on July 1st.
Tatsuya, CEO of Klavis, Inc., who joined Money Forward group in 2017 by M&A
is in charge of the strategy planning and execution of group-wide as CSO.
・Was involved in project management and launched overseas bases in a software company in 2001.・Joined Macromill, Inc, in 2006 and engaged in M&A and foundation of JV.・Founded Klavis, Inc in 2012 and serves as Representative Director and CEO.・Joined Money Forward group in 2017.
Tatsuya KantoExecutive Officer and CSO, Money Forward, Inc.Representative Director & CEO. Klavis, Inc.
Naoya KanesakaDirector, Executive Officer and CFO, Money Forward, Inc.Representative Director, Money Forward Synca, Inc.
・2007-2014: Goldman Sachs (Tokyo and San Francisco offices). Engaged in advisory services for cross-border M&As and financing.
・Joined Money Forward, Inc. in 2014. As CFO, led IPO, domestic and global financing, M&A and alliances.
・Founded and appointed as CEO of Money Forward Synca, Inc. in Sep 2019.
57Institutional Investors are Continuously Increasing
As of November 30, 2019 As of May 31, 2020（After international offering)
Foreign Institutional
Investors
41%
Domestic
Institutional
Investors
18%
Retail
Investors
10%
Strategic
Partners
6%
VCs
1%
Founding and
Executive
Members
24%
Foreign Institutional
Investors
36%
Domestic
Institutional
Investors
16%
Retail Investors
15%
Strategic
Partners
7%
VCs
1%
Founding and
Executive Members
25%
Foreign institutional investors account for 41% and domestic institutional
investors for 18%. Foreign institutional investors increased after the
international offering in February. We will start initiatives for retail investors.
58Policy for Growth Investment and Profitability 58
Policy for Growth Investment
• As a Subscription business model, we focus on maximizing medium-to-long term cash flow.
• In FY11/20, investment will be accelerated toward second half in the Business domain,
which is a SaaS business.
• Such investment to be executed as long as unit economics metrics are reasonable and
sound, with an eye on external environment as well as competitions.
• Selectively pursue strategically meaningful M&A opportunities with emphasis on financial
discipline.
Policy for Profitability
• Aim at turning EBITDA positive in FY11/21 by strengthening the revenue base and
boosting cash flow generation by the above investments.
• We plan to further improve the enterprise value by listing on the first/prime section of the
Tokyo Stock Exchange as soon as possible.
59Group-wide Growth Strategy 59
Leveraging data infrastructure and user base based on aggregation
technology to create business synergies and new businesses continuously.
Banks
Connected Services
Services
for X series
Passbook Apps
BFM
Customers/Value Proposition
etc.
Technology
etc.
CreditCards
ElectronicMoney
E-Commerce
Streamlines back office operations/
Improves productivity
Accountants / Corporates /
Sole Proprietors
Visualizes cash flow/
Improves financial literacy/
Supports asset building
Individuals
Optimizes cash flow/Helps financial
strategy/management
Corporates
Visualizes cash flow / financial
wealth of individual and corporate
customers
Financial Institutions
Da
ta
Infra
stru
ctu
re
Ag
gre
ga
tio
nT
ec
hn
olo
gy
Securities
Cloud
60Immense Total Addressable Market (TAM*)
TAM of the four domains of Money Forward Group totals ¥3.6 trillion.
Business
¥1.9 trillion*2
Home
¥0.6 trillion*3
X
¥0.5 trillion*4
Finance
¥0.6 trillion*5
¥3.6 trillion
* All footnotes are described on P76.
61
Money Forward. Move your life forward.
Appendix
About Us
64Members of Board of Directors (CEO)
Yosuke TsujiRepresentative Director, President and CEO
Yosuke Tsuji worked at Sony Corporation and Monex Securities before establishing Money Forward, Inc. in 2012. He currently serves as an Executive Officer of the Japan Association of New Economy (JANE) and committee member of the METI Fintech Review Conference. Kyoto University Faculty of Agriculture (BS), Wharton School, University of Pennsylvania(MBA).
Awards (including awards to Money Forward)
Jan. 2014 US Embassy’s Award at the Entrepreneur Awards Japan (TEAJ) 2014
Feb. 2014 JVA Chief Judge’s Award at the Japan Venture Awards (JVA) 2014
Mar. 2014 Grand Prize at the Financial Innovation Business Conference (FIBC) 2014
Nov. 2016 Ranked in Forbes Japan’s “Japan’s Top 10 Entrepreneurs” for two consecutive years
Dec. 2016 Selected by Nikkei Business magazine as one of “The 100 Most Influential People for
Japan 2017”
Feb. 2018 Judges Association’s Special Award at the Japan Venture Awards 2018
65Members of Board of Directors (Internal Directors)
Our management team has in-depth expertise in finance and technology.
Takashi IchikawaDirector, Executive Officer and CISO
・Joined Money Forward, Inc. in 2012. Appointed as director in 2017.
・2011-2012: Major financial systems development company. Led the infrastructure division and launched a new FX transactions site.
・2000-2011: Monex Group, Inc. Developed and operated securities trading systems and engaged in project management for subsidiary mergers, etc.
Naoya KanesakaDirector, Executive Officer and CFORepresentative Director of Money Forward Synca, Inc.
・2007-2014: Goldman Sachs (Tokyo and San Francisco offices). Engaged in advisory services for cross-border M&As and fund procurement mainly in the technology and financial industries, and in enhancing value of investee companies.
・Joined Money Forward, Inc. in 2014. As CFO, led IPO, domestic and global financing, M&A and alliance.
・Founded and appointed as CEO of Money Forward Synca, Inc. in Sept 2019.
Toshio TakiDirector and Executive OfficerHead of Money Forward Fintech Institute
・Appointed as director of Money Forward, Inc. in 2012.・Member of FSA panel of experts on FinTech start-ups.・2004-2012: Nomura Securities Co., Ltd./Nomura Institute
of Capital Markets Research. Engaged in research on household behaviour, the pension system, and financial institution business models etc.
・Graduated Keio University (Faculty of Economics) in 2004 and Stanford University (MBA) in 2011.
Hirokazu BanDirector, Executive Officer and Administration Division Manager
・Joined Money Forward, Inc. in 2016. Appointed as director in 2018.
・2009-2015: SBI Securities Co., Ltd. Served in the Legal and Corporate Planning Departments. Launched SBI Money Plaza Co., Ltd. in 2012 and became director.
・Graduated Waseda University (Sociology) in 2001. After graduating Aoyama Gakuin University Law School, registered as an attorney in 2008.
Takuya NakadeDirector, Executive Officer and CTO
・Joined Money Forward, Inc. in 2015. Developed financial systems, and was appointed as CTO in 2016 and director in 2018.
・2007-2014: Simplex Inc. Developed stock trading systems catered to securities companies.
・2001-2007: Jupiter Shop Channel Co., Ltd. Led CRM system development as IT manager.
Masanobu TakedaDirector, Executive Officer and COO of Money Forward Business Company
・Served as Director at Macromill Group, in charge of corporate planning and led the company’s corporate and HR strategic planning, M&As, and new business development, ・Served as Director and Head of Corporate Planning at eole Inc.・Joined Money Forward, Inc. in 2017 by M&A of Klavis Inc., where he served as Director and CFO since 2016.
66Members of Board of Directors (External Directors)
Highly experienced leaders in the Japanese economy are appointed as
External directors.
Ryoko UedaExternal DirectorAssociate Professor, SBI Graduate School
After joining Mizuho Securities Co., Ltd., was seconded to
Japan Investor Relations and Investor Support, Inc. (J-IRIS).
Served as Special Research Fellow of Financial Research
Center, Financial Services Agency (FSA), worked at Mizuho
International plc (London), and was then appointed Senior
Researcher at J-IRIS. Holds current position since March
2020. Holds a PhD in policy research.
Nobuaki KurumataniDirector, Representative Executive Officer, President and Chief Executive Officer,Toshiba CorporationFormer Representative Director, Deputy president and Executive Officer of Sumitomo Mitsui Banking Corporation. Former President of Japan, CVC Capital Partners.
Masaaki TanakaExternal DirectorChairman of the Board Representative Executive Officer President & CEONippon Paint Holdings Co., Ltd.Former Director and Deputy President at Mitsubishi UFJFinancial Group Served as Director at Morgan Stanleyfrom 2011 to 2015. Appointed Executive Chairman of theBoard of Nippon Paint Holdings Co., Ltd. in March 2019.In March 2020, he was inaugurated Chairman of theBoard Representative Executive Officer President &CEO.
Akira KurabayashiExternal DirectorManaging Director, DNX VenturesJoined DNX Ventures (former Draper Nexus Venture Partners) in 2015 where he currently serves as Managing Director. Engaged in venture capital businesses targeting Japan and the U.S. at Fujitsu Limited and Mitsui & Co., Ltd. Oversaw investments in Japan at Globespan Capital Partners and Salesforce Ventures.
Etsuko OkajimaExternal DirectorCEO, ProNova Inc.Founded ProNova Inc in 2007, and currently serves as CEO of the company. Worked at Mitsubishi Corporation, McKinsey & Company, and Globis Group, where she served as President of Globis Managment Bank Inc. Holds an MBA from Harvard University.
67Other Key Management Members (1/2)
Management members who have key roles in the growing group.
Daisuke MotokawaExecutive Officer, Alliance Strategy Head,
Head of Money Forward X
・Joined NTT DOCOMO, INC. in 2003 and engaged in solution sales
for large corporations.
・Was transferred to FeliCa Networks, Inc. and in charge of business
planning of mobile wallet and newly set up big data business.
・Returned to NTT DOCOMO, INC. and experienced NFC/Fintech.
・Joined Money Forward, Inc. in 2016.
Kiminobu TahiraExecutive Officer, Money Forward Home Company COO
・Was involved in business development of systems for the
distribution industry at NEC Corporation.
・At Rakuten, Inc., experienced setting up marketing division of
Rakuten Ichiba, constructing reward program and facilitated
business alliance.
・Joined Money Forward, Inc. as Head of marketing department after
leading retail marketing at Monex, Inc.
Naoki KurodaExecutive Officer, Fukuoka Office Head
・Joined Monex, Inc. in 2008,
・From 2012, developed bulletin board system and other web
services and offered marketing consulting.
・Joined Money Forward, Inc. in 2013 soon after its foundation.
・After engaged in the development of Money Forward ME and
Money Forward Cloud series, serves as PO of Money Forward
Cloud Expense.
Kazuya YamadaExecutive Officer, Money Forward Business Company CSO
・Passed Japanese CPA examination and joined Deloitte Touche
Tohmatsu LLC, in 2016.
・Served as Executive Officer and CFO in a startup.
・Joined Money Forward, Inc. in 2014 and served as Head of CEO
office, Head of MF Cloud development before appointed as Money
Forward Business Company CSO.
Youkou TakanoCIO
・Joined Yahoo Japan Corporation in 2006 and engaged in
development and maintenance of internal systems and
infrastructures. Led engineering team and executed cyberattack
countermeasures and information system strategy. Also,
modernized the internal IT environment as head of information
security department.
・Joined Money Forward, Inc in 2019.
Tatsuya KantoExecutive Officer and CSO, Money Forward, Inc.Representative Director and CEO. Klavis, Inc.・Worked in a software development company and was involved in project management and launched overseas bases.・Joined Macromill, Inc, in 2006 and engaged in M&A and foundation of JV.・Founded Klavis, Inc in 2012 and serves as Representative Director and CEO.・Joined Money Forward group in 2017 by M&A.
68Other Key Management Members (2/2)
Naomichi TomiyamaExecutive Officer. Money Forward, Inc.
Representative Director, MF KESSAI, Inc.
・Joined KPMG AZUSA LLC and engaged in financial and internal
control audit.
・Was involved in many voluntary and legal liquidation projects in a
consulting company.
・Joined Money Forward, Inc. in 2014 and was involved in strategy
planning and new business development.
・Appointed as Representative Director in MF KESSAI, Inc. in 2017.
Satoshi FuruhashiRepresentative Director and CEO, SMARTCAMP Co.,Ltd.・Engaged in institutional sales at Mizuho Bank, Ltd. ・Experienced business development and customer acquisition at Speee, Inc.・Founded Smartcamp Co.,Ltd, which offers BOXIL and was appointed as Representative Director. ・Joined Money Forward group by M&A in 2019.
Hidetsugu KunimiRepresentative Director, Knowledge Labo, Inc.
・After engaged in financial audit and consulting at Deloitte
Touche Tohmatsu LLC, experienced many M&As and
turnarounds at Deloitte Touche Tohmatsu Financial Advisory
LLC.
・Founded Knowledge Labo, Inc. in 2013 and serves as
Representative Director.
・Joined Money Forward group in 2018 by M&A.
Seiko HaradaExecutive Officer, Head of CEO Office and Business
Development Department, Money Forward, Inc.
・After graduating from university, engaged in marketing and
PR in an entertainment industry.
・Joined GREE, Inc. in 2011 as PR. After engaged in setting up
an industry group, was transferred to business development
and creative department of social game. After 2016, engaged
in setting up social media marketing business.
・Joined Money Forward, Inc. in 2018.
Management members who have key roles in the growing group.
Junichi KandaExecutive Officer, External Relation Head
・Joined the Bank of Japan in 1994.
・MA on Yale University.
・Temporally transferred to Financial Services Agency from 2015
to 2017 and was involved in investigation and policy planning
related to Japan’s payment structure and Fintech.
・Joined Money Forward, Inc. in 2017.
Ryo ShibuyaVP of Engineering/
Money Forward Business Company Cloud
Cross Development Department Head
・Joined Adways Inc. in 2007 and in charge of developing
advertising system.
・Joined GREE, Inc. and experienced the development of
advertising system and new business.
・Joined Money Forward, Inc. in 2014 and experienced the
launch of Money Forward Cloud Payroll, Money Forward Cloud
My Number, etc. Serves as VP of Engineering from 2018.
69Money Forward Group Structure
Ownership Main Services
Money Forward, Inc.
MF KESSAI, Inc. 100%
MF HOSHO, Inc. 100%
BPO and factoring service: MF KESSAI
Obligation guarantee and credit inquiry forMF KESSAI
Klavis, Inc. 100% Automated bookkeeping service: STREAMED
Money Forward Fine, Inc. 100% Online Lending Service
PFM service and Money Forward Cloud service
Knowledge Labo, Inc. 51% Manageboard and consulting service
Wakufuri, Inc. 56% Assisting cloud software implementation
MONEY FORWARD VIETNAM CO., LTD. 100% Product development center
Money Forward Synca, Inc. 100%Financial advisory service and management consulting for growing companies
SMARTCAMP Co., Ltd. 100%SaaS Marketing platform BOXIL and supporting Inside Sales by BALES and BALES CLOUD
Money Forward, Inc.
MF KESSAI, Inc. 100%
MF HOSHO, Inc. 100%
BPO and factoring service: MF KESSAI
Obligation guarantee and credit inquiry forMF KESSAI
Klavis, Inc. 100% Automated bookkeeping service: STREAMED
Money Forward Fine, Inc. 100% Online Lending Service
PFM service and Money Forward Cloud service
Knowledge Labo, Inc. 51% Manageboard and consulting service
Wakufuri, Inc. 56% Assisting cloud software implementation
MONEY FORWARD VIETNAM CO., LTD. 100% Product development center
70FY11/20 Q2 Financial Summary
FY11/20 Q2（March 2020-May 2020） FY11/20 Q2 YTD（December 2019-May 2020）
Actual
FY11/19 Q2 FY11/20 Q1
Actual
FY11/19 Q2 YTDFY11/20 Full-year
Forecast (lower end)
（¥ mn） Actual YoY% Actual YoY% Actual YoY% Actual Progress
Net Sales 2,821 1,661 +69.8% 2,394 +17.8% 5,215 3,059 +70.5% 11,093 +47.0%
Business 1,675 919 +82.3% 1,559 +7.5% 3,234 1,771 +82.6% 7,220 +44.8%
Home 478 403 +18.7% 451 +6.0% 929 772 +20.2% 2,000 +46.4%
X 441 263 +67.7% 235 +87.7% 675 388 +74.1% 1,250 +54.0%
Finance 227 74 +205.7% 147 +53.8% 374 122 +207.3% 623 +60.0%
Other 1 3 -79.2% 2 -67.0% 2 5 -54.3% - -
Gross ProfitMargin
1,831 1,022 +79.1% 1,668 +9.8% 3,499 1,769 +97.8% - -
Gross ProfitMargin Ratio
64.9% 61.5% +3.4pt 69.7% -4.8pt 67.1% 57.8% +9.3pt - -
EBITDA -477 -505 - -499 - -976 -1,426 - -2,800 -
EBITDA(excl. advertising expenses )
342 -226 - 112 - 454 -580 - -1,595 -
71
0
1,000
2,000
3,000
4,000
5,000
Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Dec-19 Mar-20 Jun-20
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Share Price and Trading Volume since IPO
* As of July 10th, 2020.
July 10th, 2020Close ¥6,770
（¥） ━ Share Price(LHS) ■Trading Volume(RHS) (‘000 Shares)
IPOOffering Price
¥1,550
72Promotion of Fintech/SaaS by the Japanese Government
The Japanese government has set four KPIs to promote Fintech as part of
its “Future Investment Strategy 2017.” It aims to raise the ratio of cloud-
based back office operations to 40% by 2022.
Promote open banking APIsAims to promote the adoption of open banking APIs by 80+ banks within three years (by June 2020).
Double the cashless payment ratioAims to double the cashless payment ratio to some 40% of all payments within the next decade(by June 2027).
Migrate 40% of back office operations to cloud by 2022Aims to increase the ratio of SMEs that utilize IT and cloud services etc. to improve productivity of back office operations. Target at 40% within five years (by June 2022).
Improve cash conversion cycle by 5%Aims to improve Japan’s Supply Chain Cash Conversion Cycle (SCCC) by 5% until FY2020.
*1 “Future Investment Strategy 2017 No.2-I-5 Promotion of FinTech (in Japanese),” June 2017.*2 "Growth Strategy Follow-up (in Japanese),” June 2019.*3 “Action Plan regarding the Innovative Business in FY2019 (in Japanese),” June 2019.
73Disciplined Investment Execution 73
Product Development / New Business Investments• Basic policy is to start with minimal investment to achieve product market fit, followed by
the decision to invest further.
• Constant launch of add-ons and new businesses contribute to ARPA increase, customer
base expansion and product competitiveness.
• M&A is also considered as an effective means of entering new business, adding functions
and/or customers.
Investment in Sales, Marketing and Customer Success• Investment in sales, marketing and customer success to be accelerated as long as unit
economics metrics are reasonable and sound.
• Investment decisions to be made based on the unit economics metrics described in next
page.
Continuous Review and Revision of Product/Business• Businesses are assessed by growth, market opportunities/competition and profitability
every quarter to make appropriate decisions such as withdrawal.
74Unit Economics-Driven Investment
Unit economics per product and per customer channel are taken into
account when making investment decisions, metrics which are commonly
used by global SaaS companies.
74
Average Revenue per Account (ARPA)
Marginal Costs per Paying User• Expenses required
to retain existing paying users
Customer Acquisition Cost (CAC)
MRR Churn Rate• We have negative churn as the MRR gained from up-
or cross-selling is more than the MRR lost due to cancellation
Payback Period (month)• Period required for recovering the
cost of acquiring each new customer
Cumulative Earnings
* For illustrative purpose only and not to size.
75Definition of KPIs
MRRMonthly Recurring RevenueTotal recurring revenue as of the end of a particular month
ARRAnnual Recurring RevenueCalculated by multiplying the MRR as of the end of a particular period by 12
Group ARR
Calculated by multiplying Group MRR of a particular period by 12. Group MRR includes: 1) recurring revenue from sales of Money Forward Cloud and other cloud services, and net sales from retained customers of Smartcamp Co., Ltd. in Business domain, 2) net sales from premium charges in Home domain, 3) recurring revenue in X domain, and 4) net sales from MF KESSAI in Finance domain. Group ARR includes the result of multiplying net sales of Smartcamp Co., Ltd. by recurring customer rate (the ratio of net sales from customers who commenced transactions prior to end of (N-2) quarter, to current N quarterly net sales).
CustomerPaid subscribers in the Business domain, which is a total of (1) accounting firms and (2) sole-proprietors and direct-sales corporates subscribed via the web channel etc.
ARPAAverage Revenue per Account. Calculated by dividing ARR as of the end of a particular period by the number of Customers
Customer Churn Rate
Average monthly churn rate of a particular period. Calculated as: 1 – [number of customer churns during (N) month] / [number of customers as of the end of (N-1) month]
MRRChurn Rate
Average monthly churn rate based on MRR of a particular period. Calculated as: 1 – [MRR as of the end of (N) month from Customers as of the end of (N-1) month / MRR as of the end (N-1) month
* Only KPI of Group ARR includes Smartcamp co., Ltd.
76Definition of Total Addressable Market (TAM)
*1 Total Addressable Market. Potential market size for four domains of Money Forward is estimated, by using certain assumptions, based on third party research, publication as well as Money Forward historical data.
*2 Total sum of Back office SaaS TAM and Domestic SaaS marketing. Back office SaaS TAM is calculated based on total annual expenditure when the Group’s all potential customers introduced Money Forward Cloud in Japan. The total number of potential customers is the sum of sole proprietors and corporates with less than 1,000 employees. Created by Money Forward based on National Tax Agency 2017 Survey, MIAC June 2016 Economic Census Activity Survey, MIAC 2017 Labor Force Survey. Total SaaS Marketing market size is estimated based on data which is back office SaaS expected market share in FY2019 (Fuji Chimera Research Institute, Inc., 2019 New Software Business Market. ) and back office SaaS potential market size. Average advertising costs to net sales ratio of domestic major listed SaaS companies which was calculated by Money Forward based on financial reports and presentation documents of Money Forward, RAKUS, Uzabase, Wantedly, User Local, kaonavi, Chatwork, Sansan, freee, Cybozu, and TeamSpirit.
*3 Home TAM is calculated based on total potential number of domestic Money Forward ME paying user plus additional potential revenue coming from new applications fee for financial services such as life insurance, home loan, brokerage account, and credit card. The fee is based on Money Forward historical data. Number of total potential users are calculated based on number of internet banking accounts for major 5 banks as well as data provided in H28 Financial and Information System White Paper. New user is estimated based on various data source such as the life insurance association of Japan. Survey on Insurance policy by contract type in H30; Japan Securities Dealers Association. Survey on Individual shareholders, dated July 17, 2019; Ministry of Land, Infrastructure, Transport, and Tourism Survey on Housing Loan; and Japan Consumer Credit Association. Survey on Credit Related Statistics in 2018.
*4 Calculated for potential market size that is related to service provided by Money Forward X within domestic contract development software market. Data based on Information and Communication Basic Survey in 2018 as well as company historical data and estimates.
*5 Calculated by annual required working capital for corporate under revenue of 500 million yen multiplied by ratio of post paymentsettlement usage as well as annual fee potentially charged by MF KESSAI for its service. Working capital = receivable + inventory - payable. Data based on Small and Medium Enterprise Agency's report on basic survey on SMEs in FY2016 as well as company estimates.
Products and Services
78Back Office SaaS Potential Market Size
Potential market size of back office SaaS, Money Forward’s current area of
focus, is estimated to be about ¥1tn*.
* Created by Money Forward, Inc. based on National Tax Agency 2017 Survey, MIAC June 2016 Economic Census Activity Survey, MIAC 2017 Labor Force Survey. Total annual expenditure when the Group’s all potential customers introduced Money Forward Cloud in Japan. The total number of potential customers is the sum of sole proprietors and corporates with less than 1,000 employees.*2 Defined as “Small enterprise” for a corporate with less than 20 employees, “Medium enterprise” for a corporate with between 20 and 999 employees.
Sole Proprietors
Small Enterprise*2
MediumEnterprise *2
4.5mn
1.5mn
0.3mn
Potential customers
79Domestic SaaS Marketing Potential Market Size
Domestic SaaS marketing potential market size is estimated to expand to
about ¥0.9tn, along with the expansion of SaaS market in Japan.
* Estimated based on 17.3% which is back office SaaS expected market share in FY2019 (Fuji Chimera Research Institute, Inc., 2019 New Software Business Market. ) and back office SaaS potential market size (Page 28).*2 Average advertising costs to net sales ratio of domestic major public SaaS companies. Created by Money Forward, Inc. based on financial reports and presentation documents of Money Forward, RAKUS, Uzabase, Wantedly, User Local, kaonavi, Chatwork, Sansan, freee, Cybozu, and TeamSpirit asof end of November, 2019.
SaaS potential market size*
¥6.0 tn
Advertising costs to net sales ratio*2
14.7% ¥0.9 tn
Reasons Why Users Opt for Cloud-based Services
Services can be used regardless of time, place or device.
80
Can be used from any device
with an internet connection
Data is automatically backed up,providing security in cases of damage or
loss of devices, or disasters
Can share data in real time Upgrades are free of charge
8%
10%
Providing a Paradigm Shift - Integrated Back Office
Plans to facilitate a shift from a world filled with cumbersome manual back
office operations to one which automatically connects back office functions
through cloud.
81
Invoice
Payroll Statement
Attendance Sheet
My Number
Expense Statement
Conventional Back Office- Manual entries based on paperwork - Integration of back office functions
Attendance
Payroll
Invoice
Accounting
Expense
Cloud
Manual Entry to AccountingSoftware My
Number
Fast and easy upgrades
Analysis leveraging on payroll and attendance data
Reduction of labor by service integration and automation
Increased productivity by streamlining operations
Legislative changes such as the consumption tax reform
Low labor productivity compared to the international community
Persistent long work hours
Decline in labor force due to an aging population and declining birthrate
Providing Timely Services, e.g., for “Work-Style Reform”
Aims to deliver services that resolve Japan’s social issues concerning work
style.
82
Cloud
Money Forward Cloud - SaaS Platform 83
Money Forward Cloud is a SaaS platform for back office operations.
Tapping into the expanding cloud computing market, we provide products in the form of SaaS, reducing large initial investments that would otherwise be required.
We strive to provide the benefits of IT to businesses big and small.
Cloud Series
Cloud My NumberCloud InvoiceCloud Payroll
Cloud Tax ReturnCloud Accounting Cloud Expense
Cloud Attendance Cloud Social Insurance Cloud Accounting Plus
Providing Plans for Optimizing Back Office Operations 84
Minimum
¥2,980/month
Corporates Sole proprietors
Provide a bundled service which enables sole proprietors and corporates
with 30 or less employees to use seven services at attractive price.
Minimum
¥800/month
Cloud Accounting Cloud Invoice
Cloud Payroll
Cloud Expense
Cloud Attendance Cloud Social InsuranceCloud My Number
Cloud
＊All listed prices are excluding tax. For sole proprietors, the plan provides Money Forward Tax Return instead of Money Forward Cloud Accounting.
STREAMED - Cloud-based Bookkeeping Service 85
STREAMED is a cloud bookkeeping service, where operators promptly digitalize
receipt data scanned by users.
Gathering evidence Importing data
User User
User scans receipts etc.
Operators digitalize the data within 1 business day*
User checksdata
User imports data to accounting software
* Data scanned during 10 am -7 pm of business day is digitalized within 1 business day.
86Manageboard - Cloud-based Business Analysis Tool
Improving operational efficiency Improving profitability
Accounting
processesData entry
Managerial
actionsBudget control
• AI-based audit (journal entries check)
• Automated data aggregation
• AI-based automated journal entries
• Visualization of financial data
• Budget control analysis
• Financial results forecast
• Cash flow forecast
• Budgeting and financing support
by Financial Strategy Advisers
Manageboard primarily offers functions which help SMEs improve their
profitability.
Cloud Series
87Business Model of BOXIL
SaaSPotential
Customers10 million
PV/month
SaaSProducts1,000+
Provides documents(free)
Provides Articles(free to browse)
Pay per use (every document request)+System usage fee
Posts product details
Fee
Places Advertisements
Attract users
SaaS Marketing Platform
In-house Media
*Monthly PV for October 2019 is 11.3 million.
BOXIL connects its 10+ million PV monthly users (potential SaaS customers)
with 1,000+ SaaS products, receiving fees from the SaaS vendors for every
document request made by the potential customers.
Overview of BALES / BALES CLOUD 88
BALES provides inside sales agents and consulting services.
BALES CLOUD provides a CRM SaaS product specialized for inside sales.
Planning to provide both services in combination for customers.
Inside salesImplement support
Potential customers
Inside salesCustomers
Supports by cloud services
Inside salesmanager
Operator
Execution Support Team
Consulting Team
Consultant
Building-up /improvement support
for inside sales
CRM SaaS for inside sales
Service Connections - Financial Accounting
Connecting Money Forward Cloud with other services contributes to
streamlining operations.
89
Salesforce
V-ONEクラウド
Sales Management
Accounting
Accounting Firms
Invoice Management
Credit Management
Managerial Accounting
Expense Management
Debt Management
Savings and Deposit/Withdrawal Management
Connect
Connect
Connect
Connect
Connect
ConnectConnect
Connect
Connect
Connect
Connect
Connect
Cloud Invoice
Cloud Invoice
Cloud Accounting
Cloud Accounting
Cloud Expense
Cloud AccountingCloud Accounting
Credit cardBank
account
Invo
ice
Sale
s
qu
ote
Cloud
Audit Corporations
Service Connections – HR and Labor
Connecting Money Forward Cloud Series with other services contributes to
streamlining operations.
90
Attendance
Payroll
Cloud AttendanceCloud Payroll
Accurate work hour management
Other
Calculation of extra wage
Calculation of statutory deductions
Money Forward Attendance and other connected software enable accurate work hour management and creating attendance sheets.
Enables online application of labor processes.
(Roumu Station)
(Jobcan - Attendance Management)
Using Money Forward Cloud Attendance enables automated and accurate calculation of payrolls, social insurance premiums and year-end adjustments.
Year-end Adjustment
Social Insurance Premium
Ledger and Regulations Management
Formulation of regulations and purchase of adequate social insurance
Appointing Money Forward certified members as advisors enables formulating regulations that conform to laws and selecting adequate social insurance.
HR and Labor Operations
*The names of companies, products, and services (including logos, etc.) mentioned in this document are trademarks of the respective companies or registered trademarks of the respective rights holders.
Sales Strategies Aligned with Customer Profiles 91
(a) Accountants (b) WEB (c) Direct Sales
Accountants & their clients
Sole Proprietors SMEs Corporates
Primary Products
Accounting/Payroll/Attendance/STREAMED/
ManageboardPersonal Plan Business Plan
Accounting PlusExpense/Payroll/
Attendance
Distribution Field salesMostly online
(Inbound marketing)Field sales/Inside sales
Price(Example)
(Monthly)Accounting ¥2,980STREAMED ¥12,000Manageboard ¥49,800
Personal MiniMonthly: ¥980 Annual: ¥9,600(¥800/month)
PersonalMonthly: ¥1,280Annual:¥11,760(¥980/month)
Personal PlusAnnual: ¥35,760(¥2,980/month)
Small BusinessMonthly: ¥3,980Annual: ¥35,760(¥2,980/month)
BusinessMonthly: ¥5,980Annual: ¥59,760(¥4,980/month)
Accounting Plus
¥29,800Expense¥500/employeePayroll¥300/employeeAttendance¥300/employee
MarketingField sales/
Events and seminars
Online ads/SEO/
Organic marketing
Field sales/ Inside sales/
Events and seminars
＊All listed prices are excluding tax.
Money Forward Cloud Accounting Plus
Accommodates internal controls required by pre-IPO and medium-sized companies, and helps enhance efficiency.
92
Journal entry approval workflow
Function to view change log of journal entries
Interface design in line with operations
Detailed authorization setting
Ensures accuracy and reliability by booking
all journal entries after they are approved.
Enables flexible actions according to respective
departments and operations by setting authorizations such
as "System Administrator" or "Business Administrator."
Enables effective early detection of problems and
internal control since history of registrations,
applications, updates and approvals for each journal
entry can be viewed in CSV format or on screen.
Enables intuitive operations owing to interface
design that is in line with accounting workflow.
93Money Forward ME - Automated PFM Service
Money Forward ME is the No.1 PFM app in Japan*1, reaching 10.5 million
users. One in four PFM app users are using Money Forward.
93
No.1 coverage*2: integrates 2,600+ financial services/Automatically creates household accounting books by
aggregating multiple accounts
Credit card
Bank
Electronic money
PensionMobile phone
Online shopping
Miles
Securities
Connects Automatically classifies
Visualizes
No. of users and market share*1
No. of users
Market share
*1 Rakuten Insight, Inc., “PFM app currently used” (Mar. 23 to 27, 2017) Survey targets: 685 PFM app users in their 20s to 60s*2 Based on research by Money Forward, Inc. as of July 9th , 2020
9494MF KESSAI - Online Invoicing and Factoring Services
MF KESSAI is a business process outsourcing and factoring service.
2. Assignment of accounts receivable
5.Guaranteed payment
Insurance Company
1. Sale of Goods
3. Invoicing
4. Collection of funds
Insurance Fees
Insurance Coverage
Seller Buyer
Credit Screening
Revenue
95
Disclaimer
The forward-looking statements and other contents included in this material are determined based on information currently available and may be subject to change due to macro economic trends, changes in the market environment or industry in which the Group operates, or for other internal/external factors. Money Forward, Inc. shall not represent or warrant the accuracy or completeness of the information contained in this material.
This material is an excerpt translation of the original Japanese material and is only for reference purposes. In the event ofany discrepancy between this translated material and the original Japanese material, the latter shall prevail.
