Money Forward : Summary of Consolidated Financial Results for the Three Months Ended February 28, 2022

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results

for the Three Months Ended February 28, 2022

(Based on Japanese GAAP)

April 13, 2022

Company name: Money Forward, Inc.

Stock exchange listing: Tokyo

Stock code: Representative:

3994 URLhttps://corp.moneyforward.comRepresentative Director, President and CEO Yosuke Tsuji Executive Officer and Accounting

Shun Matsuoka
Department Manager
Scheduled date to file Quarterly Securities Report:	April 13, 2022
Scheduled date to commence dividend payments:	-
Preparation of supplementary material on quarterly financial results:	Yes
Holding of quarterly financial results meeting:

Inquiries:

TEL [phone]

Yes (for institutional investors and analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the three months ended February 28, 2022 (from December 1, 2021 to February 28, 2022)

(1) Consolidated operating results (cumulative)

Percentages indicate year-on-year changes

Net sales	SaaS ARR*1	EBITDA*2	Operating profit	Ordinary profit
Three months ended February 28, 2022 Three months ended February 28, 2021	Millions of yen 4,755 3,466	% 37.2 44.8	Millions of yen 12,904 9,224	% 39.9 35.4	Millions of yen (1,159) 358	% - -	Millions of yen (1,638) 80	% - -	Millions of yen (1,655) 74	% - -

(Note)Comprehensive income (millions of yen)

Three months ended February 28, 2022: (1,779) (-%). Three months ended February 28, 2021: (100) (-%)

Profit attributable to owners of parent	Earnings per share	Diluted earnings per share
Three months ended February 28, 2022 Three months ended February 28, 2021	Millions of yen (1,668) 64	% - -	Yen (31.28) 1.35	Yen - 1.30

*1 SaaS ARR is 12 times the monthly recurring revenue of Home, Business, X and Finance domains in the last month of each term. In order to adjust for seasonal factors of STREAMED, its MRR is calculated as one-third of the revenue from STREAMED in Q1 and Q2 of each fiscal year.

*2 EBITDA=Operating profit(loss) + depreciation and amortization + tax expenses included in operating expenses + share-based remuneration expenses

(Note) Diluted earnings per share is not disclosed because it is anti dilutive due to the Company's net loss position.

(2) Consolidated financial position

Total assets	Net assets	Equity ratio
As of February 28, 2022 As of November 30, 2021	Millions of yen 59,563 56,942	Millions of yen 40,339 42,332	% 64.3 71.1

(Reference) Equity (millions of yen) As of February 28, 2022: 38,270. As of November 30, 2021: 40,491.

2. Cash dividends

Annual dividends per share
1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total
Year ended November 30, 2021 Year ending November 30, 2022	Yen - -	Yen -	Yen -	Yen -	Yen -
Year ending November 30, 2022 (Forecast)	0.00	-	0.00	0.00

(Note) Revisions to most recent dividend forecast: None

3. Forecast of consolidated financial results for the year ending November 30, 2022 (from December 1, 2021 to November 30, 2022)

In the fiscal year ending November 30, 2022, the Company will execute investments more flexibly mainly in Business domain, while monitoring the return on investment and market environment. As such, it is difficult to calculate a reasonable earnings forecast for the full year, and the Company plans to continuously disclose the earnings forecast for the next quarter.

Percentages indicate year-on-year changes

Net sales	SaaS ARR*1	EBITDA*2
Full year	Millions of yen 20,322 ~21,886	% 30.0 ~40.0	Millions of yen 15,718 ~16,841	% 40.0 ~50.0	Millions of yen -	% -

Operating profit	Ordinary profit	Profit attributable to owners of parent	Earnings per share
Full year	Millions of yen -	% -	Millions of yen -	% -	Millions of yen -	% -	Yen -

The percentages indicate changes from the same period of the previous fiscal year

Net sales	SaaS ARR	EBITDA
Six months ending	Millions of yen 4,752 ~5,072	% 19.0 ~27.0	Millions of yen 13,576 ~13,982	% 34.0 ~38.0	Millions of yen (1,900) ~(1,400)	% -

Operating profit	Ordinary profit	Profit attributable to owners of parent	Earnings per share
Six months ending	Millions of yen (2,400) ~(1,900)	% -	Millions of yen (2,500) ~(2,000)	% -	Millions of yen (2,550) ~(2,050)	% -	Yen (47.67) ~(38.32)

(Note) Revisions to most recent dividend forecast: None

*1 SaaS ARR is 12 times the monthly recurring revenue of Home, Business, X and Finance domains in the last month of each term. In order to adjust for seasonal factors of STREAMED, its MRR is calculated as one-third of the revenue from STREAMED in Q1 and Q2 of each fiscal year.

*2 EBITDA=Operating profit(loss) + depreciation and amortization + tax expenses included in operating expenses +share-based remuneration (Note) Advertising expenses for the six months ending May 31, 2022, are expected to range from 1,600 million yen to 1,800 million yen.

4. Notes

(1) Changes in significant subsidiaries during the three months ended February 28, 2022

No

(changes in specified subsidiaries resulting in the change in scope of consolidation):

• (2) Application of special accounting methods for preparing quarterly consolidated financial statements:Yes

• (3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

Changes in accounting policies due to revisions to accounting standards and other regulations:	Yes
Changes in accounting policies due to other reasons:	No
Changes in accounting estimates:	No
Restatement of prior period financial statements:	No
(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
Number of treasury shares at the end of the period
Average number of shares during the period (cumulative from the beginning of the fiscal year)
2

As of February 28, 2022

53,394,460 shares

As of November 30, 2021

53,382,460 shares

As of February 28, 2022

44,038 shares

As of November 30, 2021

36,475 shares

Three months ended February 28, 2022

53,346,042 shares

Three months ended February 28, 2021

47,755,477 shares

Quarterly Consolidated Financial Statements Consolidated Balance Sheets

(Thousands of yen)
As of November 30, 2021	As of February 28, 2022
Assets
Current assets
Cash and deposits	36,220,522	33,343,853
Notes and accounts receivable - trade	1,516,402	-
Notes and accounts receivable - trade, and contract assets	-	1,883,304
Operational investment securities	1,074,286	1,370,178
Inventories	21,762	14,818
Purchased receivables	4,222,155	5,514,527
Other	1,073,146	1,596,505
Allowance for doubtful accounts	(102,517)	(76,371)
Total current assets	44,025,758	43,646,815
Non-current assets
Property, plant and equipment	537,330	602,738
Intangible assets
Goodwill	3,068,762	4,847,076
Software	2,313,203	2,702,619
Software in progress	723,223	1,042,702
Total intangible assets	6,105,189	8,592,397
Investments and other assets
Investment securities	5,006,164	5,378,647
Leasehold and guarantee deposits	606,325	726,260
Other	712,468	667,144
Allowance for doubtful accounts	(50,678)	(50,678)
Total investments and other assets	6,274,279	6,721,374
Total non-current assets	12,916,799	15,916,510
Total assets	56,942,558	59,563,326
(Thousands of yen)
As of November 30, 2021	As of February 28, 2022
Liabilities
Current liabilities
Accounts payable - trade	211,852	257,510
Short-term loans payable	4,700,000	6,580,000
Current portion of long-term loans payable	1,713,041	1,751,311
Accounts payable - other	1,822,487	3,823,286
Accrued expenses	908,826	940,350
Income taxes payable	350,189	120,512
Unearned revenue	1,722,767	-
Contract liabilities	-	2,629,708
Provision for bonuses	34,506	45,451
Provision for bonuses for directors (and other officers)	-	15,024
Provision for points	644	18,355
Provision for loss on order received	-	3,304
Other	812,054	818,089
Total current liabilities	12,276,371	17,002,903
Non-current liabilities
Long-term loans payable	2,141,100	2,079,466
Retirement benefit liability	2,376	2,484
Other	189,728	139,277
Total non-current liabilities	2,333,205	2,221,228
Total liabilities	14,609,576	19,224,132
Net assets
Shareholders' equity
Capital stock	25,775,494	25,783,805
Capital surplus	17,233,262	15,316,673
Retained earnings	(2,755,553)	(3,013,207)
Treasury shares	(850)	(850)
Total shareholders' equity	40,252,352	38,086,420
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	228,409	157,990
Foreign currency translation adjustment	10,898	26,440
Total accumulated other comprehensive income	239,307	184,431
Share acquisition rights	38,529	37,086
Non-controlling interests	1,802,791	2,031,255
Total net assets	42,332,981	40,339,194
Total liabilities and net assets	56,942,558	59,563,326

Consolidated Statements of Income (cumulative) and Consolidated Statements of Comprehensive Income (cumulative)

Consolidated Statements of Income (cumulative)

(ThousaThree months ended February 28, 2021

Three months February 28,

Net sales Cost of sales Gross profit

Selling, general and administrative expenses Operating profit (loss)

3,466,847

924,038

2,542,808

2,462,234

80,574

Non-operating income

Interest income

Dividend income

Consumption taxes refund

Gain on investments in investment partnerships

Other

36

-

9,013

-

1,050

Total non-operating income Non-operating expenses

Interest expenses

Share of loss of entities accounted for using equity method

Foreign exchange losses

Other

10,981

-

3,910

971

Total non-operating expenses

Ordinary profit (loss) Extraordinary income

Gain on reversal of share acquisition rights

1,210

Total extraordinary income

Profit (loss) before income taxes Income taxes

23,104

Profit (loss)

Loss attributable to non-controlling interests Profit (loss) attributable to owners of parent

64,456

10,100

15,864

74,810

1,210

76,021

52,917

(11,538)