Money Forward : Summary of Consolidated Financial Results for the Year Ended November 30, 2021

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 Year Ended November 30, 2021

(Based on Japanese GAAP)

																January 14, 2022
Company name:	Money Forward, Inc.
Stock exchange listing:	Tokyo
Stock code:	3994	URL	https://corp.moneyforward.com
Representative:	Representative Director, President and CEO	Yosuke Tsuji
Inquiries:	Executive Officer and Accounting Department	Shun Matsuoka	TEL [phone]
Manager
Scheduled date of ordinary general meeting of shareholders:		February 21, 2022
Scheduled date to file Securities Report:							February 21, 2022
Scheduled date to commence dividend payments:					-
Preparation of supplementary material on financial results:			Yes
Holding of financial results meeting:							Yes		(for institutional investors and analysts)
												(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended November 30, 2021 (from December 1, 2020 to November 30, 2021)
(1) Consolidated operating results												Percentages indicate year-on-year changes
				Net sales			EBITDA		Operating profit	Ordinary profit	Profit attributable to
							owners of parent
			Millions of yen		%	Millions of yen		%	Millions of yen	%	Millions of yen		%	Millions of yen	%
Year ended November 30, 2021			15,632		38.1		429		-	(1,062)	-	(1,432)		-	(1,482)	-
Year ended November 30, 2020			11,318		58.1		(1,956)		-	(2,804)	-	(2,538)		-	(2,423)	-
(Note)Comprehensive Income (millions of yen)
Year ended November 30, 2021: (1,548) (-%). Year ended November 30, 2020: (2,386) (-%)
			Earnings per share	Diluted earnings per	Profit attributable to	Ordinary profit/total	Operating profit/net
				share		owners of parent/equity	assets		sales
						Yen				Yen		%			%		%
Year ended November 30, 2021					(29.97)				-		(5.9)			(3.6)		(6.8)
Year ended November 30, 2020					(52.08)				-		(27.7)			(13.4)		(24.8)

*1 EBITDA=Operating profit(loss) + depreciation and amortization + tax expenses included in operating expenses + share-based remuneration expenses Share-based remuneration expenses are included in EBITDA from fiscal year ended November 30, 2021.

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

*3 The Company conducted a 2-for-1 stock split of common stock effective on December 1, 2020. Therefore, earnings per share is calculated on the assumption that the said stock split was conducted at the beginning of the previous fiscal year.

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio	Net assets per share
	Millions of yen	Millions of yen	%	Yen
As of November 30, 2021	56,942	42,332	71.1	759.04
As of November 30, 2020	21,711	10,237	44.3	201.71

(Reference)Equity (millions of yen)

As of November 30, 2021: 40,491. As of November 30, 2020: 9,618.

* The Company conducted a 2-for-1 stock split of common stock effective on December 1, 2020.

Therefore, net assets per share is calculated on the assumption that the said stock split was conducted at the beginning of the previous fiscal year.

(3) Consolidated cash flows

	Cash flows from operating	Cash flows from investing	Cash flows from financing	Cash and cash equivalents
	activities	activities	activities	at end of period
	Millions of yen	Millions of yen	Millions of yen	Millions of yen
Year ended November 30, 2021	(2,327)	(5,199)	34,797	36,020
Year ended November 30, 2020	(1,119)	(2,606)	5,256	8,719

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2. Cash dividends

		Annual dividends per share		Total cash dividends	Dividend payout ratio	Ratio of dividends to
						net assets
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total	(Total)	(Consolidated)	(Consolidated)
	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
Year ended November 30, 2020	-	0.00	-	0.00	0.00	-	-	-
Year ended November 30, 2021	-	0.00	-	0.00	0.00	-	-	-
Year ending November 30, 2022	-	0.00	-	0.00	0.00		-
(Forecast)

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		EBITDA
	Millions of yen	%	Millions of yen		%	Millions of yen		%
Full year	20,322	30.0	15,718		40.0	-		-
~21,886	~40.0	~16,841		~50.0
	Operating profit	Ordinary profit	Profit attributable to		Earnings per share
	owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Yen
Full year	-	-	-		-	-		-	-
	Net sales		SaaS ARR		EBITDA
	Millions of yen	%	Millions of yen		%	Millions of yen		%
Three months ending	4,299	24.0	12,545		36.0	(2,400)		-
February 28, 2022	~4,368	~26.0	~12,729		~38.0	~(1,900)
	Operating profit	Ordinary profit	Profit attributable to		Earnings per share
	owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Yen
Three months ending	(2,900)	-	(2,980)		-	(2,920)		-	(54.67)
February 28, 2022	~(2,400)	~(2,480)		~(2,420)		~(45.31)

*1 EBITDA=Operating profit(loss) + depreciation and amortization + tax expenses included in operating expenses +share-based remuneration expenses *2 Advertising expenses for the three months ending February 28, 2022, are expected to range from 1,700 million yen to 1,900 million yen.

*3 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, monthly recurring revenue of each first quarter is calculated as one-third of the billing revenue of STREAMED of the said period.

4. Notes

(1)	Changes in significant subsidiaries during the year ended November 30, 2021	No
	(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2)	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:	No
	Changes in accounting policies due to other reasons:	No
	Changes in accounting estimates:	No
	Restatement of prior period financial statements:	No

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of November 30, 2021	53,382,460	shares	As of November 30, 2020	47,702,436	shares
Number of treasury shares at the end of the period
	As of November 30, 2021	36,475	shares	As of November 30, 2020	17,836	shares
Average number of shares during the period
	Year ended November 30, 2021	49,450,652	shares	Year ended November 30, 2020	46,530,118	shares

* The Company conducted a 2-for-1 stock split of common stock effective on December 1, 2020.

Therefore, the total number of issued shares is calculated on the assumption that the said stock split was conducted at the beginning of the previous fiscal year.

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(Reference)
Non-consolidated financial results for the year ended November 30, 2021 (from December 1, 2020 to November 30, 2021)
(1) Non-consolidated operating results							Percentages indicate year-on-year changes
			Net sales			Operating profit			Ordinary profit		Profit
			Millions of yen	%		Millions of yen		%		Millions of yen		%	Millions of yen	%
Year ended November 30, 2021	11,231	34.2	(784)		-	(1,126)		-	(1,924)	-
Year ended November 30, 2020	8,368	34.5	(1,910)		-	(1,623)		-	(1,837)	-
			Earnings per share		Diluted earnings per share
				Yen				Yen
	Year ended November 30, 2021			(38.93)				-
	Year ended November 30, 202-			(39.50)				-

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

*2 The Company conducted a 2-for-1 stock split of common stock effective on December 1, 2020.

Therefore, earnings per share is calculated on the assumption that the said stock split was conducted at the beginning of the previous fiscal year.

(2) Non-consolidated financial position

	Total assets	Net assets	Equity ratio	Net assets per share
	Millions of Yen	Millions of Yen	%	Yen
As of November 30, 2021
51,266	43,066	83.9	806.58
As of November 30, 2020
19,981	12,662	63.1	264.57

(Reference)Equity (millions of yen)

As of November 30, 2020: 43,027. As of November 30, 2020: 12,616.

* The Company conducted a 2-for-1 stock split of common stock effective on December 1, 2020.

Therefore, net assets per share is calculated on the assumption that the said stock split was conducted at the beginning of the previous fiscal year.

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Consolidated Financial Statements

Consolidated Balance Sheets

			(Thousands of yen)
		As of November 30, 2020	As of November 30, 2021
Assets
Current assets
Cash and deposits	8,919,850	36,220,522
Notes and accounts receivable - trade	1,228,255	1,516,402
Operational investment securities	219,851	1,074,286
Inventories	83,005	21,762
Purchased receivables	2,210,303	4,222,155
Other	855,801	1,073,146
Allowance for doubtful accounts	(56,747)	(102,517)
Total current assets	13,460,320	44,025,758
Non-current assets
Property, plant and equipment
Buildings	424,973	460,326
Accumulated depreciation	(91,486)	(143,887)
Buildings, net	333,486	316,439
Tools, furniture and fixtures	252,597	383,671
Accumulated depreciation	(107,852)	(165,893)
Tools, furniture and fixtures, net	144,744	217,778
Construction in progress	-	3,112
Total property, plant and equipment	478,231	537,330
Intangible assets
Goodwill	3,547,877	3,068,762
Software	623,057	2,313,203
Software in progress	393,400	723,223
Total intangible assets	4,564,335	6,105,189
Investments and other assets
Investment securities	2,230,427	5,006,164
Leasehold and guarantee deposits	580,220	606,325
Other	410,833	712,468
Allowance for doubtful accounts	(12,619)	(50,678)
Total investments and other assets	3,208,861	6,274,279
Total non-current assets	8,251,428	12,916,799
Total assets	21,711,748	56,942,558

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			(Thousands of yen)
		As of November 30, 2020	As of November 30, 2021
Liabilities
Current liabilities
Accounts payable - trade	175,032	211,852
Short-term loans payable	2,510,000	4,700,000
Current portion of long-term loans payable	968,344	1,713,041
Accounts payable - other	1,664,797	1,822,487
Accrued expenses	717,171	908,826
Income taxes payable	89,930	350,189
Unearned revenue	1,454,299	1,722,767
Provision for bonuses	16,874	34,506
Provision for points	-	644
Other	643,955	812,054
Total current liabilities	8,240,405	12,276,371
Non-current liabilities
Long-term loans payable	3,067,741	2,141,100
Retirement benefit liability	-	2,376
Other	165,833	189,728
Total non-current liabilities	3,233,574	2,333,205
Total liabilities	11,473,980	14,609,576
Net assets
Shareholders' equity
Capital stock	9,614,410	25,775,494
Capital surplus	2,910,162	17,233,262
Retained earnings	(3,111,275)	(2,755,553)
Treasury shares	(146)	(850)
Total shareholders' equity	9,413,150	40,252,352
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	214,893	228,409
Foreign currency translation adjustment	(9,752)	10,898
Total accumulated other comprehensive income	205,140	239,307
Share acquisition rights	46,549	38,529
Non-controlling interests	572,927	1,802,791
Total net assets	10,237,768	42,332,981
Total liabilities and net assets	21,711,748	56,942,558

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