Financial Results for the 2 nd Quarter of Fiscal Year Ending - - PowerPoint PPT Presentation
Financial Results for the 2 nd Quarter of Fiscal Year Ending November 30, 2020 Money Forward, Inc. July 15, 2020 Contents 1 Introduction P.2 Our Business P.6 Highlights P.11 Financial Performance in FY11/20 Q2 P.15 Money Forward
Financial Results for the 2nd Quarter of Fiscal Year Ending November 30, 2020
Money Forward, Inc. July 15, 2020
1 Contents
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.
domestic and overseas business trips
March 26
switched to online events
back office operations
professionals will be held online
Customers/Business Partners Internal/Employees
April May June
the online exhibition “BOXIL EXPO 2020”
July
policy
Our Response to COVID-19
4 ESG 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
Launched a Website "Summary of Relief Programs for COVID-19”. Released Proposal Document Aiming Paperless and Stamp-less Society
information on subsidy and grants for corporates.
information on life support and benefits for individuals.
claims that the gui uideline for
contract and nd electr troni nic si signatu ture is needed in order to transfer smoothly for companies from the conventional operations with papers and stamps to digital operations.
regarding sealing”.
Sum ummary of f rel relief pro rograms fo for r CO COVID-19 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 of Accounting Department” Promoting Remote Work for Back Office by Sharing Our Operation
commuting even after the emergency declaration.
financial closing and invoice related work.
prepared remotely in early March.
ESG Initiative – Promoting DX to Society（2/2）
Ho How we e clo closed the the qua uarte terly ly ear earnin ings with rem 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.
8 Mission / Vision / Value / Culture
9
Nationwide Partnership
We work with wide range of partners nationwide such as accounting and
(Accounting firms and Labor and Social Security Attorney firms)
4,200+
*1
Industry that We Partner with:
101
*1
Served 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.
10 10 Our 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 data
Platform for connecting Money Forward ME user with Financial Planner Cloud Company Registration
Cloud Social Insurance Cloud Accounting PlusAccounts Receivable Financing Career consulting service specialized in DX field NEW
Highlights
12 12
increasing by +70%*1 YoY
.0% of our full-year sales forecast. （Progress rate for Q2 of FY11/19 was 43% *2.） Full-year forecast remains unchanged.
Achie ieved prof rofit itabil ilit ity in EBITDA excluding advertising expenses.
accelerate the the busin iness to to add ddre ress irre rrevers rsib ible le str tructural l changes (D (DX).
ll 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.
13 13 Impact of the spread of COVID-19
Negative financial impact was limited to the expectation as of Q1. Overall, the customer acquisition is accelerating.
Business
demand for SaaS services. Home
(as announced in Q1). X
Finance
Impact to Our Business
14 14 Our Direction During and After COVID-19 Outbreak
Financial Institutions
as online events and webinars.
starting online-based job consulting service.
Home
corporates and professionals to support increasing demand
enhance the productivity and the profitability of corporates.
Business
accelerate DX of financial institutions such as Passbook Apps and BFM.
X
with rigorous screening.
supports the execution of financing and IPO of growing companies.
Finance
To address irreversible structural changes, will promote DX for the society by
for individuals and solutions for financial institutions.
Individuals Corporates
Financial Performance in FY11/20 Q2
16 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
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 Q2 Q2 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 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
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 gro 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
18 18 Growth 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
10 122
374
382 570 772
929
1,203 1,997 3,059 5,215
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
19 19 Gross Profit / EBITDA (Quarterly Trend)
Gross profit and gross profit margin marked re record rd highs. Achie ieved prof rofit itabil ilit ity in EBITDA excluding advertising expenses.
（¥ mn） □ Gross Profit ■ Gross Profit Margin
Gr Gross Prof Profit it EB EBIT ITDA
（¥ 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%
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 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
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 transportation expenses, 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.
21 21 Full-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
Ot Other Eng Engineer / Designer Change from FY2/20 End 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 65 64 61 39 39 43 38 47 49 92 95 102 74 76 85
691 727 779
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
22 22 Balance Sheet
We main intain sou
financia ial l base with more than ¥10 billion of cash/deposits and net assets.
Assets Liabilities / Net Assets （¥ mn）
Cash and Deposits 10,496
Other Current Assets 4,288 Non-current Assets 6,473 Current Liabilities 7,004 Non-current Liabilities 3,652
Net assets 10,600
Long-term borrowings 3,522 Short-term borrowings* 3,030 Current portion of long-term borrowings 620 Goodwill 2,464 Investment securities 2,274 Purchased receivables* 2,212
*1 Recorded at MF KESSAI, Inc.
Money Forward Business
Money Forward Business Highlights in FY11/20 Q2
rrin ing re revenue maintained high growth at +76 76% Yo YoY owing to growth in existing businesses and the acquisition of Smartcamp Co., Ltd.
r Account (A (ARPA) ros rose to to ¥62,297 *1 owing to the expansion of the end users of partner accountants.
.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).
ing Revenue (MRR) Churn Rate was negativ ive 1.4 .4%*5, achieving a negative churn.
ricing / / Small ll Busin iness Pla lan accounts have gra gradually ly increased
(refer to P28 and after).
24 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
Money Forward Business FY11/20 Q2 KPIs 25 25
FY11/20 Q1
ARPA
¥61,558
*1
Customer Churn Rate
1.4%
*3
2.2%
*4
MRR Churn Rate
*5
*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
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 26
FY11/17 Q1 Q2 Q3 Q4 FY11/18 Q1 Q2 Q3 Q4 FY11/19 Q1 Q1 FY11/20 Q2 Q2 Q3 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 76% Yo YoY, maintaining solid growth.
61,558 62,297
FY11/20 Q1 End FY11/20 Q2 End
30,407 33,716 37,122 43,210 59,248
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 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 28
Offering Annual/Monthly Prices for Business/Small Business Plan. Business Plan
Fo For SMEs s with com complicated ac accountin ing oper eratio ions/ s/a lar large vo volu lume of f inv nvoices
Small Business Plan
Fo For sm smal aller 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 Transfer Data 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 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 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…
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
Annu Annual 43%
ARPA*2
¥39,078
Annu Annual 50%
Business (Annual)
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…
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 r pro roductivit ity and busin iness improvement by visualizing financial data timely.
30 30
Sales/Stock Management Purchase Management Financial In Insti stitu tuti tion
POS OS Sys yste tem Settle ettlement Financing Busin siness An Analys ysis SFA/ A/CRM Clou
d Ac Accou
Clou
d Ac Accou
Huge Potential for Automation in Payroll/Accounting Area31 31
* 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.
Processing data Collecting data Predictable physical work*1 Unpredictable work*2 Stakeholder interactions*3 Applying expertise*4 Managing
Sample
Payroll
ficers & & Transaction pr proc
Legal-support workers Mortgage
Production workers Machine
Gardeners Construction laborers Personal caretakers Salespersons Artists Scientists CEO Project managers
70%
70% 67% 38% 24% 23% 11% 0% 20% 40% 60% 80% 100%
SaaS Marketing Platform BOXIL is Robust 32 32
With the growing demand for SaaS services, the number of lead generated
reased dra drastic icall lly by +52% YoY.
（Number of leads）
process management tools
Solution
Items with High Demand Trend of Number of Leads
YoY
+52%
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 5,0 ,000 partic icip ipants signed up for “Sales and Marketing Exhibition” in June. Will hold “IT/SaaS/Remote Work Exhibition” in September.
33 33
IT/ IT/SaaS/Remote Wor
ibit itio ion
2020 20 On Onlin line e Exhib ibit itio ion
Sal ales / / Mar arketing / / Fin Finance / / Acc ccounting / / Ge General l Aff Affair irs/ Org rganization / / HR/ HR/ Co Colla llaboration / / Re Remote Work
Envi vironment / / Security
Event for Accounting and Tax Professionals
Promoting DX for SMEs together with accounting and tax professionals all
34 34
Date: : July ly 27th
th, 2020 1pm-4pm JST (O
(Onli line 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
35 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 commuting even 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 37
110 128 139 158 174 199 213 226 244 263 274 287 304 332
50 100 150 200 250 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 FY11/19 FY11/17 Q1 Q2 Q3 Q4 FY11/18 Q1 Q2 Q3 Q4 Q1 Q2 FY11/20 Q1 Q2 Q3 Q4
YoY
+26%
Introduced Annual Plan ▼ （¥ mn） □Net Sales from Premium Charges ■Number of Paying User （’000 people)
38 38
62 83 73 153 92 105 86 172 126 140 103 235 147 146
50 100 150 200
Net Sales from Media/Advertising
As expected, Q2 saw a slight decrease in net sales due to the cancellation
Money EXPO 2017 ▼ （¥ mn） FY11/17 Q1 Q2 Q3 Q4 FY11/18 Q1 Q2 Q3 Q4 FY11/19 Q1 FY11/20 Q2 Q1 Q2 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.
39 39 Money 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
100 200 300 400 500 600 700 800
(Mar ar – Ma May 2019)
（1,000 users）
About
500k
About
700k
Late test (Mar – Ma May 2020)
Number of Users Exceeded 10.5 Million
40 40 Contribution 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”
(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.
41 41 Money 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
42 42 Expansion 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 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
50 100 150 200 250 300 350 400 450
Net Sales from Money Forward X
Both recurring and non-recurring revenues reached re record highs, ac achie ieved +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 Q2 Q2 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 service launch. （¥ mn） ■Recurring Revenue □Non-recurring revenue
45 45 Co-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.
46 46 Launched 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 47
MF F Unit nit Ser erie ies
Offering PFM tools within financial institutions apps
Alliance with Financial Institutions (Apps and Tools)
Money Fo Forward fo for r X X Ser eries
Developing customized Money Forward ME for financial institutions and its clients.
Pass assbook Ap Apps
Developing passbook apps for financial institutions and its clients
Oth ther Pro rojects
* 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 As Asset Moni Monito toring ng Uni Unit PFM Uni 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 49
2 3 7 17 36 48 74 93 125 147 227
50 100 150 200 250 FY11/17 Q4 FY11/18 Q1 Q2 Q3 Q4 FY11/19 Q1 FY11/20 Q1 Q2 Q2 Q3 Q4
Net Sales from Money Forward Finance
Achie ieved ra rapid id gr growth of
and BPO invoicing of MF KESSAI. Contributing to corporates’ DX by improving efficiency of settlement operation.
（¥ mn）
YoY
+206%
50 50 MF KESSAI Exceeded ¥20 Billion in Total Transaction Volume
Tra ransaction vol
double led in just six mon
in total transaction. The number of applications for MF KESSAI Early Payment, accounts receivable financing service do doubled fr from
the end of
la 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.
51 51 MF KESSAI Entered into a Business Matching Agreement with Financial Institutions
Started offering MF KESSAI to cor
rate clie lients of
izuoka Bank and Hiro roshim ima Bank. Plans to expand the alliances with financial institutions.
Hiroshima Bank Shizuoka Bank
Corporate Clients
Offers the services Application Introduces the services
52 52 MF 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.
53 53 Money Forward Synca Expanded the Service Realm
Launched two new services, unli listed sto tock sale les adv dvis isory and career support to help the startups’ growth.
Unlisted Stock Sales Advisory Service Career Support Service Startups
CXO/Candidates of Management Back office Talents
Supp upport Rec Recruitin ing
Payment of fee Introduce buyers* Introduce sellers* Transfer of Stock Payment
Buyer Investors Seller 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
55 55 Alliance with Financial Institutions (APIs)
To be contracted with all ll 125 banks with connections*1. Building up th the biggest account agg ggregatio ion pla latform in Japan. Japan’s top*2 Fin Fintech company in ter terms of
refe ferentia ial l and mon
transfer API con
Banks Shinkin Banks Labor Banks Agricultural and Fishery Cooperative Savings Insurance Corporations Referential Money Transfer Referential Money Transfer Referential Money Transfer Referential 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.
56 56 Enhancement 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
・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 Kanto
Ex Exec ecutive Officer an and d CS CSO, Money For Forward, d, Inc. Rep Repres esentative Director & & CE
avis, Inc.
Naoya Kanesaka
Direc ector, E , Exec ecutive e Officer er a and d CFO, , Money Forward, I , Inc. Rep Repres esentative Director, Money For Forward Sy 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.
57 57 Institutional 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%
Fo Foreign instit itutio ional l investors rs account fo for r 41% and do domestic institutio ional investors fo for r 18%. Foreign institutional investors increased after the international offering in February. We will start initiatives for retail investors.
58 58 Policy for Growth Investment and Profitability 58 58
Policy for Growth Investment
ubscription bus busin iness mod
aximizin ing med ediu ium-to to-lo long te term rm cash cash fl flow.
nvestment will ll be be acc accelerated toward second half in the Business domain, which is a SaaS business.
as lon
as unit unit econ economics met etric ics ar are re reas asonable le and and sou
nd, with an eye on external environment as well as competitions.
discipline.
Pol Policy for Pro Profit itability
turnin ing EB EBITD TDA pos posit itiv ive in FY11/21 by strengthening the revenue base and boosting cash flow generation by the above investments.
ing on
the fi first/prime sect ectio ion of
the To Toky kyo Stoc tock Exc Exchange as soon as possible.
59 59 Group-wide Growth Strategy 59 59
Leveraging data infrastructure and user base based on aggregation technology to create business synergies and new businesses continuously.
Ban anks
Connected Services Services
for X series Passbook Apps BFM
Customers/Value Proposition
etc. etc.
Technology
etc. etc. Credit it Car ards ds Elect ectroni nic Money ey
E- Com
ce
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
D a t a I n f r a s t r u c t u r e A g g r e g a t i o n T e c h n o l o g y
Se Secur curiti ities
Cl Clou
60 60 Immense 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 61
Money Forw rward
life fo forw rward.
Appendix
About Us
64 64 Members of Board of Directors (CEO) Yosuke Tsuji
Representative 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)
US Embassy’s Award at the Entrepreneur Awards Japan (TEAJ) 2014
JVA Chief Judge’s Award at the Japan Venture Awards (JVA) 2014
Grand Prize at the Financial Innovation Business Conference (FIBC) 2014
Ranked in Forbes Japan’s “Japan’s Top 10 Entrepreneurs” for two consecutive years
Selected by Nikkei Business magazine as one of “The 100 Most Influential People for Japan 2017”
Judges Association’s Special Award at the Japan Venture Awards 2018
65 65 Members of Board of Directors (Internal Directors)
Our management team has in-depth expertise in finance and technology.
Tak Takashi i Ic Ichikawa
Di Director
ive Of Office icer and CISO ・Joined Money Forward, Inc. in 2012. Appointed as director in 2017. ・2011-2012: Major financial systems development
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 Kan anesaka
Di Director
ive Of Office icer and and CFO Representativ ive Di Director of
Money For
Synca, Inc. c. ・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.
To Toshio io Tak Taki
Di Director
ive Of Offic icer Hea Head of
Money For
ward Fintech Inst stit itute ・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
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.
Hi Hirokazu Ban an
Di Director
ive Of Office icer and Admin inis istratio ion Di Divisio ision Ma 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.
Tak Takuya Nakade
Di Director
ive Of Office icer and CTO TO ・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.
Mas asanobu Tak Takeda
Di Director
ive Of Office icer and COO OO of
Money For
ward Bu Busin siness ss Com
・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.
66 66 Members of Board of Directors (External Directors)
Highly experienced leaders in the Japanese economy are appointed as External directors.
Ryoko Ueda
External l Di Director
Assoc socia iate Prof
ssor
SBI Graduate Sch 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
Nobuaki Kur urumata tani
Di Director
ive Executiv ive Of Offic icer, Presid sident and Chie ief Executiv ive Of Offic icer, Tos Toshiba Cor
ion Former Representative Director, Deputy president and Executive Officer of Sumitomo Mitsui Banking
Partners.
Mas asaaki Tan Tanaka
External l Di Director
Chair irman of
Board Representativ ive Executiv ive Of Offic icer Presid sident & & CEO Ni Nippon
int Hol Holdin ings gs Co.
Former Director and Deputy President at Mitsubishi UFJ Financial Group Served as Director at Morgan Stanley from 2011 to 2015. Appointed Executive Chairman of the Board of Nippon Paint Holdings Co., Ltd. in March 2019. In March 2020, he was inaugurated Chairman of the Board Representative Executive Officer President & CEO.
Ak Akir ira Kur urabayashi
External l Di Director
Ma Managin ing Di Director, DNX DNX Ventures Joined 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.
Ets tsuko Okajim ima
External Di Director
CEO, ProN
c. 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
University.
67 67 Other Key Management Members (1/2)
Management members who have key roles in the growing group.
Da Dais isuke Motokawa
Executiv ive Of Offic icer, All llia iance St Strategy gy He Head, He Head of
Money For
ward 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.
Kimin inobu Tah Tahir ira
Executiv ive Of Offic icer, Mon Money For
Home Com
OO
・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 Kur uroda
Executiv ive Of Offic icer, Fukuok
Offic ice He 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.
Kaz azuya Ya Yamada
Executiv ive Of Offic icer, Mon Money For
Busin siness ss Com
・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
Forward Business Company CSO.
Yo Youkou Tak Takano
CIO CIO
・Joined Yahoo Japan Corporation in 2006 and engaged in development and maintenance of internal systems and
countermeasures and information system strategy. Also, modernized the internal IT environment as head of information security department. ・Joined Money Forward, Inc in 2019.
Tatsuya Kanto
Executiv ive Off Offic icer and CSO, Mon Money For
ward, Inc. c. Representativ ive Di Director and CEO. Kl Klavis, is, Inc. c.
・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.
68 68 Other Key Management Members (2/2)
Naomic ichi To Tomiy iyama
Executiv ive Of Offic
Money For
Representativ ive Director, MF MF KE KESSAI, Inc. c.
・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.
Sato Satoshi Fu Furuhashi
Repr presentativ ive Director and d CEO, SM SMARTCAMP Co.,Ltd. d.
・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.
Hi Hidetsugu Kun unim imi
Representativ ive Di Director, Kn Know
ledge Labo, Inc. c.
・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.
Seik eiko Ha Harada
Executiv ive Of Offic icer, He Head of
Offic ice and Bu Busin siness ss De Develo lopment De Department, Mon Money For
c.
・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.
Ju Junichi i Kan anda
Executiv ive Of Offic icer, External l Rela latio ion He 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 yo Shib hibuya
VP of
gineerin ing/ Mon Money For
Busin siness ss Com
Cross ss De Developm lopment De Department He 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.
69 69 Money 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 for MF 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 for MF 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
70 70 FY11/20 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 YTD FY11/20 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
2
2 5
Margin 1,831 1,022 +79.1% 1,668 +9.8% 3,499 1,769 +97.8%
Margin Ratio 64.9% 61.5% +3.4pt 69.7%
67.1% 57.8% +9.3pt
(excl. advertising expenses ) 342
71 71
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, 2020 Close ¥6,770 （¥） ━ Share Price(LHS) ■Trading Volume(RHS) (‘000 Shares) IPO Offering Price ¥1,550
72 72 Promotion 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 APIs
Aims to promote the adoption of open banking APIs by 80+ banks within three years (by June 2020).
Double the cashless payment ratio
Aims 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 2022
Aims to increase the ratio of SMEs that utilize IT and cloud services etc. to improve productivity of back
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.
73 73 Disciplined Investment Execution 73 73
Product Development / New Business Investments
the decision to invest further.
base expansion and product competitiveness.
and/or customers.
Investment in Sales, Marketing and Customer Success
economics metrics are reasonable and sound.
page.
Continuous Review and Revision of Product/Business
every quarter to make appropriate decisions such as withdrawal.
74 74 Unit 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 74
Average Revenue per Account (ARPA) Marginal Costs per Paying User
to retain existing paying users
Customer Acquisition Cost (CAC) MRR Churn Rate
cancellation
Payback Period (month)
cost of acquiring each new customer
Cumulative Earnings
* For illustrative purpose only and not to size.
75 75 Definition of KPIs
MRR
Monthly Recurring Revenue Total recurring revenue as of the end of a particular month
ARR
Annual Recurring Revenue Calculated 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).
Customer
Paid 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.
ARPA
Average 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]
MRR Churn 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
* Only KPI of Group ARR includes Smartcamp co., Ltd.
76 76 Definition 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
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
*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 payment settlement 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
78 78 Back 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
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 Medium Enterprise *2
Potential customers
79 79 Domestic 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 as
SaaS potential market size*
Advertising costs to net sales ratio*2
Reasons Why Users Opt for Cloud-based Services
Services can be used regardless of time, place or device.
80 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 10%
Providing a Paradigm Shift - Integrated Back Office
Plans to facilitate a shift from a world filled with cumbersome manual back
through cloud.
81 81
Invoice Payroll Statement Attendance Sheet My Number Expense Statement
Conventional Back Office
paperwork
Attendance Payroll Invoice
Accounting Expense
Cloud
Manual Entry to Accounting Software
My Number
Fas Fast an and d eas asy upg pgrades Ana Analy lysis is lev everagin ing on
payroll l and and att attendance da data Red Reduction of
abor by by serv rvice integratio ion an and au auto tomation Increased prod productivit ity by by stre treamlining ope
Legis islative ch changes such ch as as th the con consumption tax tax ref reform Low
abor pro productivit ity co compared to to th the internatio ional co community Pers rsis istent lon
De Decline in lab abor for force du due to to an an ag agin ing pop popula lation an and d de declin ining bi birthrate
Providing Timely Services, e.g., for “Work-Style Reform”
Aims to deliver services that resolve Japan’s social issues concerning work style.
82 82
Clou
Money Forward Cloud - SaaS Platform 83 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 ud Se Serie ies Cloud ud My Nu Number er
Cl Clou
voice
Cloud ud Pay Payroll ll Cloud ud Tax Tax Retur urn Cl Cloud Ac Acco counti ting Cloud ud Expens ense Cloud ud At Attend endance nce Cloud ud So Social cial Insur surance ance Cloud ud Ac Acco coun untin ting Pl Plus us
Providing Plans for Optimizing Back Office Operations 84 84
Minimum ¥2,9 ,980/month
Cor Corporates Sol Sole pro 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
Cl Clou
Cl Clou
voice Cl Cloud Payr yroll Cl Clou
xpense Cl Cloud Atte ttendance Cl Cloud Social Ins nsurance Cl Cloud My My Num Number
Clo loud
＊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 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 checks data User imports data to accounting software
* Data scanned during 10 am -7 pm of business day is digitalized within 1 business day.
86 86 Manageboard - Cloud-based Business Analysis Tool
Im Improvin ing oper eratio ional effic efficie iency Im Improvin ing prof rofit itabil ility ty
Accounting processes Data entry Managerial actions Budget control
by Financial Strategy Advisers
Manageboard primarily offers functions which help SMEs improve their profitability.
Clo Cloud Ser erie ies
87 87 Business Model of BOXIL
SaaS Potential Customers 10 million
PV/month
SaaS Products 1,000+
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 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 sales Implement support
Potential customers
Inside sales
Customers
Supports by cloud services
Inside sales manager Operator
Ex Execu cution n Sup Support t Te Team Con
ting 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 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 Connect Connect Connect Connect
Connect
Connect Connect
Cloud Invoice Cloud Invoice
Cloud Accounting Cloud Accounting Cloud Expense
Cloud Accounting Cloud Accounting Credit card Bank
account
Invoice Sales quote
Cloud
Audit Corporations
Service Connections – HR and Labor
Connecting Money Forward Cloud Series with other services contributes to streamlining operations.
90 90
Att Attendance Payroll
Cl Clou
ttendance Cl Clou
yroll
Accurate wo work hour manage gement Ot Other Calcu lculatio ion of
wage ge Calcu lculatio ion of
ctio ions Money Forward Attendance and
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 Year-end Ad Adjustment So Soci cial Insur nsuranc nce Premium Ledger and Re Regulati tions Ma Management
For
latio ion of
gula latio ions s and purch chase se of
l insu surance Appointing Money Forward certified members as advisors enables formulating regulations that conform to laws and selecting adequate social insurance.
HR R and Labor Op Operation
*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 91
(a) a) Acco ccountants (b) b) WEB EB (c) c) Direct Sal ales
Ac Accountants ts & & the their ir cl clie ients Sole Prop roprietors SMEs
Corp
Prim rimary Pro roducts ts
Accounting/Payroll/ Attendance/STREAMED/ Manageboard Personal Plan Business Plan Accounting Plus Expense/Payroll/ Attendance
Di Distributio ion
Field sales Mostly online (Inbound marketing) Field sales/ Inside sales
Pric rice (Ex Example)
(Monthly) Acco Accounti ting ¥2,980 ST STREAMED ¥12,000 Ma Manageboard ¥49,800 Person
Mini ni Monthly: ¥980 Annual: ¥9,600 (¥800/month) Person
Monthly: ¥1,280 Annual:¥11,760 (¥980/month) Person
Annual: ¥35,760 (¥2,980/month) Sm Small Bus Business Monthly: ¥3,980 Annual: ¥35,760 (¥2,980/month) Bus Business Monthly: ¥5,980 Annual: ¥59,760 (¥4,980/month)
Ac Accounting Pl Plus
¥29,800 Exp Expense ¥500/employee Payroll ¥300/employee Atte Attendance ¥300/employee
Marketin ing
Field 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 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.
93 93 Money Forward ME - Automated PFM Service
Money Forward ME is the No.1 PFM app in Japan*1, reaching 10.5 million
93 93
No.1 cov coverage*2
*2: int
ntegrate tes 2, 2,600+ fi financial serv ervices/ Aut Automatic ically y cr creates s hou household ac accountin ing books by y agg aggregatin ing mult ultip iple ac accounts
Credit card Bank Electronic money Pension Mobile phone Online shopping Miles Securities
Connects Automatically classifies VisualizesNo. . of
users and market t sha share*1
*1
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
94 94 94 94 MF KESSAI - Online Invoicing and Factoring Services
MF KESSAI is a business process outsourcing and factoring service.
2.
Assign signment of
acc accounts re rece ceivable 5. 5.Guaranteed pay payment
Insurance Com Company
1.
ale of
3.
nvoicing 4.
lectio ion of
fund funds
Insurance Fees Insurance Coverage
Sell eller Bu Buyer
Cr Credit Scr creening Rev evenue
95 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 of any discrepancy between this translated material and the original Japanese material, the latter shall prevail.