Summary of Non-consolidated Financial Results for the Nine Ended September 30, 2021 [Japanese GAAP]

Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Summary of Non-consolidated Financial Results

for the Nine Months Ended September 30, 2021

[Japanese GAAP]

			November 12, 2021
Company name:	WealthNavi Inc.
Listing:	Tokyo
Securities code:	7342	URL: http://www.wealthnavi.com
Representative:	Representative Director and CEO	Kazuhisa Shibayama
Contact:	Director, CFO	Gaku Hirose	(TEL) [phone]
Scheduled date to file quarterly Securities Report:	November 12, 2021
Scheduled date to commence dividend payments:	-
Preparation of supplementary materials on quarterly financial results: Yes
Holding of quarterly financial results presentation meeting:	Yes (for institutional investors and analysts)

(Millions of yen with fractional amounts rounded down, unless otherwise noted)

1. Non-consolidated financial results for the nine months ended September 30, 2021 (from January 1, 2021 to September 30, 2021)

(1) Non-consolidated operating results (cumulative)					(Percentages indicate year-on-year changes)
	Operating revenue		Net operating	Operating profit	Ordinary profit		Net profit
		revenue
Nine months ended	million yen	%	million yen	%	million yen	%	million yen		%	million yen		%
September 30, 2021	3,210	81.9		3,195	82.6	(268)	-	(268)		-	(271)		-
September 30, 2020	1,764	-		1,750	-	(766)	-	(765)		-	(767)		-
	Basic earnings	Diluted earnings
	per share		per share
Nine months ended			Yen			Yen
September 30, 2021		(5.96)			-
September 30, 2020		(18.08)			-

Note 1. As the Company has not prepared non-consolidated financial statements for the nine months ended September 30, 2019, the percentage indicating year-over-year changes is not shown for the nine months ended September 30, 2020.

1. 1. The Company conducted a 3-for-1 stock split of common stocks effective on August 30, 2020. Basic earnings per share and diluted earnings per share are calculated assuming the stock split was conducted at the beginning of the previous fiscal year.
   2. Diluted earnings per share for the nine months ended September 30, 2021 is not depicted because, although potential shares exist, the basic loss per share is reported. Also diluted earnings per share for the nine months ended September 30, 2020 is not depicted because, although potential shares exist, the Company's shares were unlisted and the average share price was not available for that period as well as the basic loss per share was reported.
2. Non-consolidatedfinancial position

	Total assets	Net assets	Equity-to-asset ratio
As of	million yen	million yen	%
September 30, 2021	19,330	7,318	37.9
December 31, 2020	15,378	6,916	45.0

(Reference) Equity: As of September 30, 2021 7,318 million yen As of December 31, 2020 6,916 million yen

2. Cash dividends

		Annual dividends per share
	First quarter-	Second quarter-	Third quarter-	Fiscal year-end	Total
	end	end	end
Fiscal year ended	Yen	Yen	Yen	Yen	Yen
-	0.00	-	0.00	0.00
December 31, 2020
Fiscal year ending	-	0.00	-
December 31, 2021
Fiscal year ending				0.00	0.00

December 31, 2021 (Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Non-consolidated earnings forecast for the fiscal year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)

(Percentages indicate year-on-year changes)

		Operating revenue		Operating profit excluding advertising expenses
	Fiscal year ending	million yen		%	million yen		%
	4,316		71.5	1,076		586.2
	December 31, 2021
	Note 1. Operating profit excluding advertising expenses is the sum of the operating profit and advertising expenses.

• 2. Revisions to the earnings forecast most recently announced: None

• Notes
• 1. Adoption of accounting treatment specific to the preparation of quarterly non-consolidated financial statements: None
  2. Changes in accounting policies, changes in accounting estimates, and restatement
  3. 1. Changes in accounting policies in accordance with changes in accounting standards, etc.: No
     2. Changes in accounting policies due to other reasons: None
     3. Changes in accounting estimates: None
     4. Restatement: None
  4. Number of shares issued (common shares)
  5. 1. Number of shares issued at the end of the period (including treasury shares)

As of September 30, 2021	45,593,749 shares
As of December 31, 2020	44,967,649 shares
(ii) Number of treasury shares at the end of the period
As of September 30, 2021	4 shares
As of December 31, 2020	- shares

(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year)

Nine months ended September 30, 2021	45,549,212 shares
Nine months ended September 30, 2020	42,467,649 shares

• Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
• Explanation of the proper use of earnings forecasts, and other special matters

The forward-looking statements such as earnings forecasts contained in these materials are based on information currently available to the Company and certain assumptions deemed to be reasonable. These statements do not purport that the Company pledges to realize such statements. Because of variable factors, actual results may differ from the forecast figures. For information regarding assumptions upon which the Company's results forecasts are based and notes regarding the use of forecasts, please refer to page 2 of the attached materials 1. Qualitative information regarding quarterly results (3) Explanation regarding non-consolidated forecasts and forward- looking statements.

Attached Materials
Index
1. Qualitative information regarding quarterly results .........................................................................................................	2
(1)	Explanation of operating results .................................................................................................................................	2
(2)	Explanation of financial position................................................................................................................................	2
(3)	Explanation of non-consolidated financial results forecasts and other forward-looking statements...........................	2
2. Quarterly financial statements and significant notes thereto ............................................................................................	3
(1)	Quarterly balance sheets.............................................................................................................................................	3
(2)	Quarterly statement of income ...................................................................................................................................	5
(3)	Notes to quarterly financial statements.......................................................................................................................	6
(Notes on premise of going concern) ...........................................................................................................................	6
(Notes on significant changes in the amount of shareholders' equity) .........................................................................	6

1

1. Qualitative information regarding quarterly results （1）Explanation of operating results

During the nine months of the fiscal year, the global economy, in general, continued to recover from the COVID-19 pandemic while the situation varied from country to country. Japanese economy, however, remained uncertain despite expectations for reopening of economy with high vaccination rates and epidemic prevention measures.

In light of this environment, the Company has actively expanded the functions of its fully automated robo-advisor "WealthNavi," increased the number of its alliance partners, hired human resources to strengthen its business base, and engaged in advertising activities such as TV commercials, all to achieve continuous business growth.

Regarding the expansion of the functions of "WealthNavi," the Company began offering "Robo-NISA" as part of its direct business in February. "Robo-NISA" is a feature leveraging the NISA's tax exemption merits while enabling the wealth management of long-term investment with a globally diversified portfolio through "WealthNavi." The Company also started offering "Robo- NISA" for 15 alliance partners. The details are as follows (below) -

June: "WealthNavi for SBI Securities," a service provided in partnership with SBI Securities Co., Ltd. "Hokkoku Omakase Navi," a service provided in partnership with The Hokkoku Bank, Ltd

July: "WealthNavi for SBI Sumishin Net Bank," a service provided in partnership with SBI Sumishin Net Bank, Ltd "WealthNavi for Sony Bank," a service provided in partnership with Sony Bank Inc.

August: 11 other alliance partners

In addition, the Company has been promoting the expansion of its alliance partners. In August, the Company and The Chukyo Bank, Ltd. started offering "Chukyo Omakase Navi". Also the Company concluded business alliance agreements with The Taiko Bank, Ltd. in June and plans to offer a managed account service with a hybrid of online and face-to-face support.

As a result, as of September 30, 2021, there were 303 thousand users and assets under management totaled 548.8 billion yen. Consequently, for the nine months ended September 30, 2021, the operating revenue was 3,210 million yen (up 81.9% year-over-

year), and the net operating revenue after deducting financial expenses of 15 million yen from the total operating revenue was 3,195 million yen (up 82.6% year-over-year), for the nine months ended September 30, 2021. In addition, the selling, general, and administrative expenses cost was 3,463 million yen (up 37.6% year-over-year), resulting in an operating profit excluding advertising expenses of 954 million yen (up 1,255.8% year-over-year), an operating loss of 268 million yen (a loss of 766 million yen in the same period of previous fiscal year; same hereinafter), an ordinary loss of 268 million yen (a loss of 765 million yen), and a quarterly net loss of 271 million yen (a loss of 767 million yen).

The Company only operates in a single segment being the robo-advisor business, and thus, no segment information is reported.

（2）Explanation of financial position

(Assets)

Total assets as of September 30, 2021 were 19,330 million yen, up 3,952 million yen from the end of the previous fiscal year. This was mainly due to the increase of 3,400 million yen in cash segregated as deposits for customers.

(Liabilities)

Total liabilities as of September 30, 2021 were 12,012 million yen, up 3,550 million yen from the end of the previous fiscal year. This was mainly due to a 3,370 million yen increase in deposits received associated with the increase in funds received from customers, etc.

(Net assets)

Total net assets as of September 30, 2021 were 7,318 million yen, up 402 million yen from the end of the previous fiscal year. This was mainly caused by an increase in share capital of 336 million yen from a third-party allotment related to a secondary offering through an over-allotment etc., an increase in legal capital surplus of 336 million yen, and a decrease in retained earnings of 271 million yen due to the recording of a net loss.

(3) Explanation of non-consolidated financial results forecasts and other forward-looking statements

There is no change to the financial results forecast for the year-ending December 31, 2021 announced on May 14, 2021.

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2. Quarterly financial statements and significant notes thereto

(1) Quarterly balance sheets

					(Units: Thousands of yen)
				As of December 31, 2020	As of September 30, 2021
Assets
	Current assets
		Cash and deposits	8,613,814	9,465,471
		Cash segregated as deposits	4,610,000	8,010,000
		Cash segregated as deposits for customers	4,610,000	8,010,000
		Trading products	43	60
		Trade date accrual	398	2,025
		Advances paid	9,784	5,033
		Advance payments	4,000	7,300
		Prepaid expenses	39,251	62,239
		Accounts receivable - other	24,367	6,355
		Accrued income	289,200	465,417
		Due from banks	1,525,641	1,058,835
		Other current assets	589	558
		Total current assets	15,117,090	19,083,297
	Noncurrent assets
		Property, plant, and equipment
		Buildings	68,440	68,440
		Equipment	64,006	57,874
		Accumulated depreciation	(64,272)	(73,042)
		Total property, plant, and equipment	68,174	53,272
		Intangible assets
		Software	47,808	88,210
		Software in progress	40,965	1,392
		Trademark right	1,100	987
		Total intangible assets	89,874	90,590
		Investments and other assets
		Lease and guarantee deposits	97,325	97,325
		Long-term prepaid expenses	5,773	6,507
		Total investments and other assets	103,099	103,833
		Total noncurrent assets	261,149	247,696
	Total assets		15,378,239	19,330,993

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