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Money Forward. Move your life forward.
Forward Map 2024
Integrated Report 2024
Money Forward, Inc.
Moving Life Forward in
Your Own Way at Your Own Pace
Live in peace with your loved ones. Immerse yourself in what you really want to do.
Be up for new challenges and create social value that never existed before.
Money is indispensable for making a prosperous future a reality.
That is why Money Forward aspires to a society where everyone can address money in a positive frame of mind,
move forward at their own pace, and navigate lifeʼs challenges.
This is for everyone who trusts and supports us.
Letʼs continue to work together and make strides forward!
CONTENTS
Mission Vision Values Culture
Value Creation Model
CEO Message
Our Footprints and the Future of Money Forward
2
4
6
12
Introduction
Three Priority Themes
User Forward
ーMoney Forward Cloud User Interview
ーMoney Forward ME User Interview
Society Forward
Talent Forward
ーTalent Forward Strategy
ーDEI (Diversity, Equity & Inclusion)
15
16
18
20
23
27
01 Sustainability
Financial Data
ESG Data
SPOTLIGHT Non-Japanese Members
Stock Information / Company Information
83
84
88
89
05 Facts & Data
Corporate Governance
Dialogue with External Directors
Executives
Compliance
Risk Management
Security
67
70
74
78
79
80
04 Governance
CFO Message
Financial Highlights
Business Highlights
Business Domain
Home Domain
X Domain
Finance Domain
SaaS Marketing Domain
Global Strategy
SPOTLIGHT Account Aggregation
29
34
35
36
40
42
44
46
48
49
02 Our Business
User Focus
ーDialogue with CPO and PdM
Tech & Design
ーDialogue with CTO and CDO
ーMoney Forward Vietnam
ーMoney Forward Lab
Fairness
Culture
SPOTLIGHT Professional Partners
03 Values & Culture
51
56
59
60
61
62
65
An Episode of Moving Life
Forward
Forward
Voice
Mission Our unrelenting commitment to society
Money Forward.
Move your life forward.
ʻMoneyʼ 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.
Vision The path toward fulfilling our mission
Becoming
the financial platform for all
We aim to solve financial issues of all individuals and businesses through building an open and fair financial platform and providing
essential services.
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
2
Values Our Values are the guiding principles that allow us to achieve our Mission.
We always keep our users foremost in
our minds, no matter the constraints. We
seek to understand their core challenges
and deliver value that exceeds both user
expectation and imagination.
We believe that technology and design
can truly make a difference in the world.
By leveraging the best of both,
we can bring new value to our users and
move society forward.
We vow to be fair, honest and
open-minded in every interaction with
our stakeholders. This includes our users,
employees, shareholders, and society as
a whole.
User Focus Tech & Design Fairness
Culture We at Money Forward deeply cherish our Culture.
We make speedy decisions, take
immediate action, and accomplish things
in the shortest time.
We aim for high standards of
professionalism. We strive to grow and
achieve the best results.
We approach our work with
a team-oriented mindset to reach our
goals. One for all, all for one.
Speed Professional Teamwork
We strive to always be thankful,
respectful, and sincere towards everyone.
We strive to continually evolve because
we know the world around us is
constantly changing.
Enjoy work, enjoy growth, and enjoy life.
Respect Evolution Fun
Update!
Update!
Update!
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
3
Mission
Our unrelenting
commitment to
society
Money Forward.
Move your life
forward.
Vision
The path toward
fulfilling our
mission
Becoming
the financial
platform for all
Forward Model Value Creation Model
Values
Input
Human
Capital
Social
Capital
Intellectual
Capital
Financial
Capital
Output Outcome
User Focus Tech & Design
(p.51) (p.56) (p.61)
Fairness
Speed Professional Teamwork
Respect Evolution Fun
Sustainability
Growth Strategies
Business Area
Three Priority Themes
Synergy creation
and
higher productivity
Integration of SaaS
and
Fintech
M&A strategy
execution
Governance that Balances Offense and Defense
Advancement of
value proposition
Business Home X Finance
SaaS
Marketing
Culture
(p.5) (p.30) (p.5)
(p.62)
Governance(p.66)
(p.36) (p.40) (p.42) (p.44) (p.46)
User Forward
Moving Usersʼ
Lives Forward
We aim to capitalize on the powers of
technology and design to deliver services to
various users to solve their money issues.
(p.16)
Society Forward
Moving Society
Forward
We aim to build a better society by making
policy proposals and co-creating with
diverse partners.
(p.20)
Talent Forward
Moving Employee
Potential Forward
We aim to create an environment that
enables our superior and diverse talent
gathered around the world to unleash the
capabilities and achieve continuous growth.
(p.23)
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
4
Input Output
Used by many users as a result of service improvements and new service developments.
User Forward
(p.16)
0.8% 0.8%
¥135.2bn ¥287.2bn
235,798
FY2022 FY2023
FY2023
FY2022 FY2023
FY2023
67 81
¥281,000 ¥295,000
¥7.7tn ¥11.0tn
¥17.3tn ¥21.3tn
Money Forward X: partner companies
Money Forward ME: yearly improvement in personal finance
Amount of assets managed under all integrated accounts
Amount of financial assets under all integrated accounts
Businesses
Individuals
We are supporting the growth of individuals and organizations to maximize the potential of diverse
and outstanding talent. We are also creating an environment and culture where diverse talent can
work with peace of mind.
Talent Forward
(p.23)
Ratio of women among managers (overall / business positions)
Cumulative number of participants in Leadership Forward Program
Cumulative number of participants in Manager Basic Training
126
419
20.2%/26.0%
100.0%/50.0%
179
591
20.4%/24.1%
92.9%/87.1%
Refer to p.87
Childcare leave acquisition rate (women / men)
Employee engagement (MF Group Survey)
301,233
FY2022 FY2023
Partnerships are increasing as a result of our co-creation with diverse partners to resolve social issues.
Society Forward
(p.20)
123
126
25,258
137
180
32,364
We uphold Tech & Design (p.56), as one of our Values, and maximize the power of technology and
design. We also steadfastly maintain a sound and stable financial foundation (p.29).
Intellectual Capital
Cumulative number of registered intellectual property rights
(Total patents, design rights, and trademarks)
Account aggregation technology (p.49)
Number of connected services
:
corporate 2,382/consumer 2,531
¥38,856mn/¥34,660mn
239
Cash and deposits / Net assets
Financial Capital
We will hire outstanding talent who align with our Mission Vision Values Culture (MVVC) with
diverse perspectives and experience from all over the world not limited to Japan.
Human Capital
Group employees
Ratio of female employees 34.5%
16.6%
2,130
Ratio of non-Japanese members
Social Capital
We uphold Fairness (p.61), as one of our Values to deal with all stakeholders with fairness and
integrity, and we are building trusting relationships with diverse partners, which are indispensable
for resolving social issues.
Trusting relationships with diverse partners
The Group has set priority themes (Materiality) in the three areas of “User,” “Society,” and “Talent” to make our envisioned society a reality. In tackling these themes, we are investing the powers
of technology and design in the name of intellectual capital, the cash and deposits required to scale up our business as financial capital, trusting relationships with our partners as social capital,
and the outstanding and diverse talent fostered through recruitment and development as human capital. By engaging in activities based on our Values (code of conduct) and growth strategies,
these capitals have generated outcomes that uplift the potential of users, society, and our employees, which are the goals of each theme. While it is not easy to quantify such diverse outcomes,
the Group uses “Sustainability Indicators” (for the definition and calculation method, please refer to p.83.) to measure the achievement of the three materiality themes, discloses them as output,
and keeps a close eye on the changes over time. We will continue to explore appropriate indicators from medium- to long-term perspectives and revise them, as necessary, going forward.
SaaS applications for back-office operations: paying customers
Money Forward Cloud: corporate customer churn rate
Money Forward Kessai and Early Payment:
cumulative amount of receivables
Money Forward Cloud: users associated with certified members
Money Forward Cloud: chambers of commerce in alliance
Money Forward X: services provided
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
5
We live in an age of
uncertainty:
All the more reason to
pave a path toward the
ideal future.
Representative Director
President and CEO
Yosuke Tsuji
This year marks Money Forwardʼs 12th year since its founding.
My gratitude is endless for
all those stakeholders who continue to support us.
This year we will continue to deploy the four growth strategies (p.30)
that we have been pursuing to achieve our Mission of “Money Forward.
Move your life forward.” We will also set the stage for our transformation into the
profit-making phase through improved profitability and a positive EBITDA.
All of us at Money Forward are ready to make a concerted effort toward this goal.
We, therefore, humbly ask for your ongoing support and guidance.
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
6
The social impact of the generative AI, “ChatGPT,” has
been perceived with shock across all sectors. While some
view AI as a threat, I am convinced that how we harness
AI in business will become the nexus of management
strategies going forward.
The Group has wasted no time in responding to these
changes by adopting AI in existing service offerings and
accelerating new business development. We can also
expect to see the huge benefits of AI use in operational
tasks, such as reduced costs and improved productivity.
As we face these changes in the landscape, we will bolster
our support for the growth of our customers by ramping
up our AI use (p.58) to achieve our Mission of “Money
Forward. Move your life forward.”
Along with “high-power agility” to catch any issue
requiring immediate responses coming our way, as a CEO,
I am also keenly aware of the need to have a “medium- to
long-term vision.” I need to grasp global and macro
trends, think through what preparations are required to
stay ahead of the curve three years, five years, and ten
years from now and put them into action. Because we live
in an age of uncertainty, I believe these are the capabilities
that are required of CEOs.
While the Group values speedy business management as
evidenced by its monthly new product releases and
updates, it is also an undeniable fact that Monozukuri takes
time.
Bringing a product that is truly needed by society into
the world requires the assiduous process of countless
iterations of failure and verifications and repeated testing
based on user input. It is not an exaggeration to say that
Money Forward was built on the accretion of this very
process.
Money Forward ME (p.41), with its number of users
topping 15.3 million in total, has grown to become the No. 1
service in Japan, and yet this product took 12 years to
scale and reach this many users. For a CEO, taking so long
can be a frustrating experience but it also illustrates the
complexity and the gratification that Monozuruki brings.
There are many instances when I think, “If only we were
more capable.” Nevertheless, thanks to your support, I
think we are gradually moving closer to having an impact
on society, and at the same time, I am also feeling we are
actually making a difference.
Take, for example, if our corporate customers using
Money Forward Cloud can reduce the number of hours
spent on accounting by one hour per day, then
approximately 20 hours would be saved a month, adding
up to approximately 600 hours of unfettered time for 30
companies. Currently, 150 thousand companies use Money
Forward Cloud, meaning, by a rough estimate, we would
have created approximately 3 million hours of value. This
means more time for our customers to focus on their core
endeavors. This is exactly the society that we have
envisioned, and we are slowly but surely bringing such a
society to life.
Fortunately, Money Forward has become a gathering
place for outstanding talent and many members are
growing into leaders who can be relied upon to make
everyday decisions. I am empowering our whole
organization by proactively entrusting leadership to
members who are capable of taking proactive action by
putting users into the driving seat, as well as framing
medium- to long-term strategies. And by delegating
authority to take action, I am providing even more growth
opportunities.
That said, my duty as a CEO, is to leverage my
“high-power agility” to deal with changes that occur right
before our eyes and predict what lies beyond these
changes with my “medium- to long-term vision,”
determine the role society will demand in the future,
decide which seeds to sow now, and take the required
action. I donʼt want to chase change. I would rather
anticipate change and edge closer to the ideal future, as
quickly as possible. This is the vision I have for myself.
Monozukuri (Product creation)
takes time.
This is why CEOs must equip
themselves with
“high-power agility” and
“a medium- to long-term vision”
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
7
Just as we more often hear the terms, “Fintech” and
“SaaS,” which were almost unheard of 12 years ago, we
need to take on the challenge of bringing things into the
world that did not exist before, to keep society moving
forward. Of course, we cannot do this alone, and it will
only be possible with the presence of our stakeholders
who share a compelling vision and support us to move it
forward. Challenges inevitably entail failures, but failures
will turn into successes through learning from our
mistakes and perseverance. The important thing is not to
let failure be the end result.
For example, we are leading the way in offering features
that leverage AI, as described above, while we also offer
products such as the Mikatano series (p.43) to advance
digitalization and the DX of regional SMEs where the
information gap seems to be the most profound. A
partnership between a venture and regional financial
institutions may be a rare example, but it reflects our
unique and long track record of building trust with
regional financial institutions. We will continue to serve as
a trigger for our customers, the regional SMEs, to start
adopting digital practices.
By paving the way and doing things that nobody has
done before, we hope our customers feel that they were
able to take on new challenges because Money Forward
was there to back them up. And someday, we hope that
our services become a part of the social norm so that
nobody even thinks about them anymore. We aspire to
disruptive growth and not an extension of the status quo.
At Money Forward,
we do it because nobody has done it before
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
8
To bring the society we envision to life and sustainably
enhance our corporate value, we have identified the three
materiality themes of “User Forward,” “Society Forward,”
and “Talent Forward” (p.15). They embody our relentless
efforts to drive our usersʼ lives and businesses forward and
make value propositions to revitalize society, and our
aspiration to provide an environment where the individuals
who work at Money Forward can harness their strengths
and capabilities to make this vision a reality. Among these
themes, I have been putting the most effort into “Talent
Forward,” i.e. investments into human capital, because I
believe Monozukuri is essentially about “People-building.”
Recently, I have been working on further enhancing the
quality and quantity of my internal communication. This
includes regular 1 on 1s with division leaders; my full
commitment to the “Leadership Forward Program” (p.25),
our leadership development program since 2021; taking
the time for dialogue with newly onboarded members; and
direct messages twice a month at the companywide
Morning All-hands meetings. I am also preparing to send
out regular internal communications to share “whatʼs on
the CEOʼs mind.”
What began as a startup with a few people has grown
into an organization with over 2,100 members in the past
12 years. 16.6% of our employees are Non-Japanese
members and it is no longer unusual to hear lively
conversations in languages other than Japanese in the
office. To maximize the performance across the
organization born through the synergy of diverse human
resources enhancing each otherʼs strengths and
compensating for each otherʼs weaknesses, I will continue
to champion diversity management as part of our growth
strategy.
For each of our diverse members to unleash their
strengths, it is imperative that, as the CEO, I carefully
articulate, and build an organization where all employees
can aim for our common goal. It is this concept that also
led to the update of our Values and Culture, which
underpin Money Forward. To raise greater awareness of
our unchanging focus on “design-driven thinking” and
“design-driven management,” we transitioned from
defining our values as “Technology Driven” to “Tech &
Design” (p.56), and we also added “Evolution”
representing our ceaseless efforts to evolve under any
changes to the environment (p.63).
Monozukuri is
about “People-building”
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
9
Last but not least, I have something happy to share.
The other day, a customer commented, “Money Forward
is a company full of trust.”
Trust is the biggest and most important asset for any
company. Trust is not born from my actions alone but
through the interactions of each and every member with
our customers. Although there is still plenty of room for
improvement, I am elated and humbled to have even one
customer feel this way.
It may seem strange coming from me but I love this
company. Our colleagues are earnest, positive, personable,
and eager to contribute to society. I believe that a group
of people united under the simple precepts of trust, such
as “Never lie” and “Keep promises” are what constitute
the foundations of trust of a company.
Because we live in an age of uncertainty, solving the
money issues of as many individuals and companies as
possible, thereby resolving as many social issues as
possible, is our mission and our greatest contribution to
society.
Driven by our Mission of “Money Forward. Move your life
forward,” we remain unchanged in our commitment to
build up our precious asset of trust and unite our
employees to take on the challenge of what is to come.
Please continue to provide us with your support and
guidance.
Moving the entire
Group forward by building on
our precious asset of trust
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
10
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
11
Move users forward by
empathizing with the money
worries of each individual
December 2012-
Move financial experiences forward
through co-creation with partners
November 2015-
May 2012
“Money Forward. Move your life forward.”
Money Forward is established.
5
4
3
2
1
Bolster the back office and move
business and workers forward
November 2013-
Since the early days of the
company, we have been making
unique policy proposals. Today, the
scope of our proposals encompasses a
broad range of policies including
child-rearing measures, as well as
financial measures. While it is not easy to
change society, by involving partners who
are empathetic to our cause, we hope to
bring about a better society.
Related pages
Society Forward...p.20
Money Forward Cloud was born
from user input saying they
wanted to use Money Forward ME
to file their tax returns. Today we offer
back-office SaaS to companies at varying
stages of development and more than
300,000 businesses use this service. We
support businesses as they take on new
challenges by building a more powerful
back office.
Related pages
Money Forward Cloud User Interview…p.16
Business Domain…p.36
Money Forward ME, a service for
visualizing personal finances, was
launched. Now there are more than
15.3 million users in total. We hope to
open up a future where each user can
address money in his or her own way with
a positive frame of mind and unleash
boundless opportunities.
Related pages
Money Forward ME User Interview…p.18
Home Domain…p.40
We launched the Money Forward X
Business based on the relationship
of trust forged with our partners
since connecting Money Forward ME and
Money Forward Cloud. Today, we are
committed to bridging the digital divide
along with 36 regional financial
institutions. We aim to continue creating
next-generation financial experiences
with our partners.
Related pages
X Domain…p.42
Money Forward was founded on the
single wish of building a society where
everyone can believe “tomorrow will
be better than today,” a society where anyone
can stand up to any challenge by reducing
money worries. We have been blessed with
many outstanding colleagues and after
repeated challenges and mistakes we have
been able to enter our 13th year. We will
continue our progress to fulfill this wish, which
has remained unchanged since our inception.
Related pages
Mission Vision Values Culture…p.2
Value Creation Model…p.4
CEO Message…p.6
4
3
2
1 5
Moving forward on a road less traveled
toward the future we envision
M o n ey F o r w a r d h a s g r a d u a l l y p ave d t h e w ay by b u i l d i n g o n t h e t r u s t o f o u r
stakeholders and standing up to the challenge of doing things that nobody has
done before. The Money Forward Group will continue to make a concerted effort to
take on new challenges for a better future for our users and for society.
Move society forward
through policy proposals
July 2015-
Our Footprints and the Future of Money Forward
Money Forward goes public to
take on more challenges
September 2017-
Move more users forward
through globalization
Move forward with allies who
envision the same future
November 2017-
Move finances forward that
support business growth
June 2017-
8
7
9
6
10 Move toward a future
free from money worries
We are taking on the challenge of
globalization to achieve our Mission
and Vision and to move the lives of
more users forward. To gather outstanding
talent from around the world, we have
established global offices and are actively
hiring non-Japanese members.
Furthermore, we are continuing our
challenge of globalizing our current
business.
Related pages
Talent Forward…p.23
Global Strategy…p.48
Money Forward Vietnam…p.59
SPOTLIGHT Non-Japanese Members…p.88
Starting with the group join (M&A)
of Klavis, Inc., which provided
STREAMED, an automated journal
entry service, we have been proceeding
with M&As of companies that can share
our Mission and Vision. Seven such
excellent companies have joined the
Group. Together we will take on new
challenges and work toward growth for the
future endeavors that we share.
Related pages
CFO Message…p.31
With gratitude to our long-time
supporters, we were listed on TSE
Mothers and embarked on a new
chapter of the company. Since our listing, our
market cap has increased more than eightfold
and our sales have grown more than tenfold. We
will continue to move forward and meet the
expectations of our investors and shareholders.
* In June 2021, our listing was changed to the
TSE First Section. In April 2022, our listing was
changed to the TSE Prime Market, in conjunction
with the changes to the market classifications.
Related pages
CFO Message…p.29
Financial Highlights…p.34
A future free from money worries
and anxiety, where everyone can
move their lives forward. This is a
future with boundless possibilities that we
want to bring to life through our services.
To make this a reality, we will continue to
pave the way by standing up to the
challenge of doing things that nobody has
done before and building trust.
Related pages
CEO Message…p.6
Money Forward Lab…p.60
We launched our finance business
to improve corporate cash flows
and support business growth. We
have expanded our Business domain to
include Biz Forward, a joint venture with
Mitsubishi UFJ Financial Group and also
launched the venture capital fund, HIRAC
FUND. We will continue our relentless
pursuit of a future where companies can
develop their businesses with peace of
mind.
Related pages
Finance Domain…p.44
9
8
7
6 10
Sustainability
01
Three Priority Themes
User Forward
ーMoney Forward Cloud User Interview
ーMoney Forward ME User Interview
Society Forward
Talent Forward
ーTalent Forward Strategy
ーDEI (Diversity, Equity & Inclusion)
15
16
18
20
23
27
Moving Usersʼ Lives Forward
We aim to capitalize on the powers of technology and
design to deliver services to various users to solve their
money issues.
Materiality Three Priority Themes
Since our inception, our mission has been “Money
Forward. Move your life forward.” and we aspire to
deliver on our purpose of solving peopleʼs money issues
and worries.
“Money,” which is the Companyʼs namesake, can be a
difficult subject to tackle. Money is merely a tool for
well-being. That being said, these uncertain times are
making us see “Money” in a negative light, and in many
instances, as increasingly onerous̶making us avert our
eyes. Chalking it up to opaque “Money” prospects, some
people have been forced to put off marriage and
pregnancy, while others have withdrawn from
businesses, and many other missed opportunities loom
in our society.
In our opinion, a “sustainable society” is one in which
everyone including individuals and entities can challenge
themselves to do anything, untethered by such “Money”
worries. To make this a reality and sustainably improve
our corporate value, we have positioned the three areas
of “User,” “Society,” and “Talent” as our corporate
materiality themes. Our goal is to develop and provide
services that solve our usersʼ “Money” issues and deliver
them to as many people as possible through co-creation
with partners while building a better society through
policy proposals and other activities. We also believe
that an organization that attracts superior and global
talent and allows them to mutually uplift one another is
essential for achieving such a society. To this end, a
Head of Sustainability was appointed in February 2021,
and a Sustainability Committee was established the
following year. The Committee, chaired by the CEO,
comprises members appointed by the Board of Directors
and ensures the validity and effectiveness of
sustainability measures.
The Group currently offers a wide range of services but
the road to a “sustainable society” is a seemingly
endless path wrought with challenges. At Money
Forward, each of us will continue to engage with money
issues and work together to bring us closer to our
envisioned society.
* The use of data from MSCI ESG Research LLC or its affiliates (ʻMSCIʼ) by Money Forward, Inc.,
as well as the use of MSCIʼs logos, trademarks, service marks, or index names, does not imply
sponsorship, endorsement, approval, or promotion of Money Forward, Inc. by MSCI. MSCIʼs
services and data are the property of MSCI or its information providers, provided ʻas is,ʼ and
without warranties. The name and logo of MSCI are trademarks or service marks of MSCI.
User Forward Talent Forward
Moving Employee Potential Forward
We aim to create an environment that enables our superior
and diverse talent gathered from around the world to
unleash the capabilities and achieve continuous growth.
Society Forward
Moving Society Forward
We aim to build a better society by making policy
proposals and co-creating with diverse partners.
Third-party Assessments
Money Forward has been selected as a constituent in four ESG
indices adopted by Japanʼs Government Pension Investment Fund
(GPIF), as reference for making its investments. In June 2023,
Money Forward was upgraded by one level from the previous
year and awarded an “AA” in the MSCI ESG Rating*. We far
exceed industry averages, particularly in “S” (human capital) and
“G” (governance) items, through the implementation of relevant
systems and measures and improved disclosure of ESG data.
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
15
User
Moving Usersʼ
Lives Forward
User Interview 01
Forward
Azumino, a town built around
Japanʼs leading spring water.
We are elevating the value of water
by making our region known
around the world.
User of Money Forward Cloud
Mr. Yasunori Arai
Representative Director
Azumino Mineral Water Co., Ltd.
Implemented services
Money Forward Cloud Accounting
Money Forward Cloud Invoice Issuing
Money Forward Cloud Attendance
Money Forward Cloud Payroll
Money Forward Cloud Tax Adjustment
Talent Forward
Society Forward
User Forward
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
16
▶“SaaS applications for back-office operations: paying customers,” one of the “Sustainability Indicators” to measure our progress on “User Forward,” increased by approx. 60,000 from last year to top 300,000.
Going forward we hope to help as many clients as possible, such as Azumino Mineral Water Co., Ltd. solve their back-office issues and support them in their new endeavors
(p.5 Sustainability Indicators)
.
Accounting personell managed payments and
invoices using analog means. To access past
financial statements on the road, they had to be
scanned and attached to emails. Attendance was
managed based on time cards, resulting in
numerous application omissions and delays.
The reduced burden of back-office operations allows
us to focus on our core business. Through easier access
to financial statements, whenever and wherever, we
sped up business judgment/decision-making. With an
improved overall focus of the employees regarding
attendance management, there were fewer application
omissions and delays.
Implementation of
Money Forward Cloud
Before implementation After implementation
Since our founding in 2012, we have grown through our
core business of manufacturing and selling mineral
water. Our dedicated 2-liter bottle production lines at
our main plant in Azumino City, Nagano Prefecture,
produce 180,000 bottles per day, the majority of which
are shipped to major convenience stores and drugstores
and marketed as a proprietary brand under the name,
Azumino no tennen-sui (Natural water from Azumino).
We are proud and committed to our business of
spreading the name of Azumino nationwide as one of
Japanʼs leading “towns built around water,” blessed with
the bounties of mountains, rivers, and land.
When extracting and marketing water, the focus tends
to be on “price and volume.” However, a low margin high
volume mindset can translate into immeasurable
environmental burdens and poor working conditions for
the employees. Above all, it can be detrimental to
elevating the brand value of the land producing such
quality water. This is why we have been stepping up to
the challenge of “elevating the value of water” through
various initiatives. A Japanese sake, mine, launched in
2022, is one of them. We have joined forces with a
long-standing Kyoto sake brewer, empathetic to our
cause, to elevate and expand the “value of water.”
Back-office operations have also increased in
conjunction with company growth and business
expansion. This is why Money Forward Cloud efficiently
takes care of the work that does not require our direct
input to let us focus on our core business as well as
creating an environment to embark on new endeavors to
“elevate the value of water.” The implementation of
Money Forward Cloud has not only translated into a
smaller burden on our accounting staff but also
improved the overall focus of the employees due to
fewer application omissions for paid leave and
attendance. I am personally grateful because it gives me
timely access to data for decision-making, wherever I am
in the world, during my many business trips. Before, we
only prepared paper financial statements which made it
difficult to access them on the road. Money Forward
Cloud for me combines style and function with its
user-friendly and attractive operation screens.
I will continue my efforts to speed up management
decision-making and create an environment conducive
to the innovative work of our employees. I will also
deliver the appeal of Azumino and the value of water to
people around the world and aspire to become a
harbinger of hope for the Azumino community.
Talent Forward
Society Forward
User Forward
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
17
Freed from a vague sense of
anxiety, I can now spend money
on what I want with a positive
frame of mind.
User Interview 02
User of Money Forward ME
Mr. Yusuke
Talent Forward
Society Forward
User Forward
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
18
▶“Money Forward Me yearly improvement in personal finance,” one of the “Sustainability Indicators” to measure our progress on “User Forward,” increased from 281,000 yen last year to 295,000 yen.
We will go forward with product improvements so that we can help users, such as Mr. Yusuke, resolve their money anxieties and support them in pursuing what they want
(p.5 Sustainability Indicators)
.
I started using Money Forward ME when I got married
in 2018. My mantra until then had been, “What I earn
by day, I spend by night” and I never kept track of how
much I spent or what I spent it on. After trying out a
number of apps, my wife and I decided Money Forward
ME was the easiest to use. The app gives you an
overview of all money movement, so you can figure
out your income and expenses, as well as valuation
losses/gains on your assets managed. The automatic
integration of credit card statements and bonus
points, as well as investment trusts and online
shopping, is an especially useful feature.
The biggest transformation for me since starting
Money Forward ME was becoming more flexible in the
way I spent my money. I no longer have to give up
everything to save money. Instead, in order to spend
money on what I want or what I value with a positive
frame of mind, I avoid things that are not important.
As a couple, we love to go out and eat great food. So,
being mindful of curbing other unnecessary expenses
has made dealing with money less stress-inducing. I
believe that the more you spend on what you love, the
happier your life will be. Therefore, this transformation
has been huge.
As a result, we have been able to step up from merely
managing our household finances to entering our asset
management phase. We no longer “just spend
whatever we have.” Instead, by only allowing ourselves
constructive expenditures, we can plan for the future
from a long-term perspective. Freed from a vague
sense of anxiety, we have reached a state of mind
where we feel at ease about making our money grow.
From now on, I hope to spend money on my sonʼs
activities. He likes banging things together and making
a lot of noise. So, I hope we can find an activity for him
that maximizes his five senses. Once he finds a hobby,
we hope we will be ready to let him pursue it
wholeheartedly by having budgeted the necessary
funds. This is why I intend to continue with Money
Forward ME and deal with money with a positive frame
of mind.
Before use After use
Use of
Money Forward ME
Talent Forward
Society Forward
User Forward
My mantra had always been, “What I earn by day, I
spend by night” and I never knew where and how
much of my money had gone. Having been a
freewheeling spender, I always found myself gripped
by a vague sense of anxiety. Thinking about our future
after getting married only amplified this anxiety.
Getting an overview of all our money movement
has allowed me to be more flexible in the way I
spend my money on the things that I want. Also,
planning for the future from a long-term perspective
has allowed us to step up from managing our
household finances and enter our asset management
phase with peace of mind.
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
19
Drive society forward with unique Money Forward policy proposals
We have identified “Society Forward” as one of our materiality themes and aspire to
not only resolve the issues facing our users through the delivery of services but also
move society forward as a whole through policy proposals, co-creation with various
partners, and practicing environmentally-conscious management.
Since our inception, we have been making policy proposals to propel society forward.
This is because money issues cannot be resolved by services alone and require
transformative innovations of social institutions and practices. In some cases, these
institutions have not caught up with technological advances, and in such cases, it is
necessary to indicate a plausible image of the envisioned institution while taking into
account the status quo.
In our policy proposals, also, we have brought to bear our unique perspective that
values “User Focus” as well as our unique approach as a venture firm. Our contact
Doing what we can, step by step,
together with our partners
points with users are broad and far-reaching. Among the inquiries from our users, some
are intrinsically institutional issues that defy service-based resolutions. For such users,
we speak on their behalf and voice their concerns to society. Being a venture firm, the
reach of our activities may not be enough to engage society into bringing about a
transformation. This is why we have tapped into the media who are attuned to social
change to assist us.
Our outreach has been instrumental in gradually changing policy-makers and social
awareness to bring about institutional change. As a result, our services are being slowly
but surely embedded into the social infrastructure, with the added social responsibility
entailed as an operator of the foundations for the livelihood of people and businesses.
We will then responsibly heed the increasing number of requests from users and
society to continuously improve our services. And when another institutional issue
arises, we will once again commence our outreach for its resolution. Transforming
society, step by step, through such a cycle is the very essence of our approach.
Society
Forward
Moving Society Forward
Talent Forward
Society Forward
User Forward
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
20
The scope of our policy proposals range
from child-rearing to digital currencies
Recently, we have been focusing on research and proposal
activities regarding policy agenda that are integrally connected
to our business domain of solving money issues such as the
operation of self-regulatory organizations required to set up new
user-oriented financial services (electronic payment services and
the financial service intermediary business) in our society or
how financial infrastructure (Central Bank Digital Currency
(CBDC) and new settlement infrastructure) should function in
the digital age. And leveraging our wide point of contacts with
users, our Group has also been focusing on making public
services more accessible. In terms of individuals, we joined the
Japanese Association for Promotion of Childʼs DX in 2023 and
contributed to initiatives that make child-rearing measures more
readily available. We also made policy proposals to bring clarity
to public pensions. For businesses, we made proposals to make
municipal procedures fully handled on the cloud in the future.
In this way, we have been making policy proposals across
areas closely related to our business and those perceived to be
shared social challenges, be it in the financial or non-financial
domain.
We held media workshops in conjunction with the FSA certification in
2023 of the Japan Association for Financial APIs, a self-regulatory group
to spread and raise awareness on electronic payment services.
Talent Forward
Society Forward
User Forward
Money Forward, a registered electronic payment
services provider under the Banking Act, obtains data
such as bank account deposits/withdrawals linked to
Money Forward ME and Money Forward Cloud and
visualizes data to enable users to grasp the state of
their assets and simplify accounting tasks. Our
current focus is the visualization of data from the
linked financial institutions but want to add more
integrations to our service and make fund transfers
including remittances possible within our services. By
doing so we want to provide new sources of income
for our partnering financial institutions as well as
enable a future filled with convenient service
offerings to our users. With all that in mind we will
continue to make policy proposals.
Pick Up!
Expanding the electronic payment
services ecosystem
Financial domain
The
Group
ʼ
s
business
domains
Shared
social
challenges
Non-financial domain
Expanding the financial
service intermediary
business ecosystem
Financial infrastructure
(settlement system/CBDC)
Expanding the
electronic payment
services ecosystem
Promoting
online factoring
Promoting
financial education
Finances for
a super-aging society
Digital tax payments
(Invoice system,
electronic bookkeeping, etc.)
Promoting data portability
Promoting data
utilization and EBPM
DX of
child-rearing policies
Promoting start-ups
(entrepreneurship, funding)
Making the fintech
industry more secure
Promoting
the DX of SMEs
Government
cloud utilization
Clarity to
public pension
Pick Up!
* CBDC (Central Bank Digital
Currency) is a digital currency
issued by the central bank
* EBPM (Evidence-based Policy
Making) refers to initiatives in forming
policies based on reasonable grounds
upon clarifying the policy objectives.
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
21
We announced the alliance for promoting DX in urban
planning at a home game of Hokkaido Consadole Sapporo.
We are pushing forward with the DX of companies and the
development of digital talent in Sapporo City.
Pushing forward with financial literacy classes at school
We hope to be instrumental in raising financial literacy in schools and at home.
Financial education at schools is an area where concerted efforts by both the public
and private sectors are required, given that educators are not familiar with such
material and have little time to prepare. This is why we must provide the right tools
such as teaching materials for educators, as well as go to the schools to teach the
classes. Raising financial literacy has become a major agenda for the government, as
evidenced by the newly established financial and economic education promotion
organization, and we intend to push forward with various initiatives to raise the
literacy of as many people as possible and free them from money issues.
Letʼs make it! A future created through co-creation with diverse partners
We cherish the concept of “Letʼs make it (Co-creating and achieving).” It is not easy to
change society. Such change can only come about by involving others and co-creating
with partners who are empathetic to our cause. We also believe that to deliver the
power of technology and design to all, co-creation with diverse partners who are
leaning in closer to the users in the resolution of their issues is essential.
This is the reason why co-creation with partners features prominently in the
“Sustainability Indicators” to measure our progress on “Society Forward.” The specific
indicators are the numbers of certified members of professional offices and chambers
of commerce that became our partners to support nationwide SMEs since the launch of
Money Forward Cloud. Additionally, to address the social problems posed by the digital
divide, we have set an indicator of the number of digital financial services provided in
collaboration with our financial partners.
All indicators show strong performance. We have been able to deliver our services to
more users through partnerships with diverse partners, as indicated by the more than
300,000 business users of Money Forward Cloud. Going forward we will continue to
closely monitor these sustainability indicators that focus on co-creation with partners
but we will also consider the setting and disclosure of indicators that measure progress
in sustainability from a medium to long-term perspective.
We also partner with three J.League Club Teams. Every year, we hold the sponsored
match “Money Forward Day,” with Yokohama F.Marinos, as a co-creation event to
support the club with the fans and supporters. As an “official DX partner” of Avispa
Fukuoka, we are promoting the DX of
the Kyushu region. We also signed a
trilateral agreement with Hokkaido
Consadole Sapporo and the city of
Sapporo as part of an alliance for
promoting DX in urban planning. In
this way, we have been promoting DX
with sports serving as the hub. We
have also implemented Money
Forward Cloud in 21 J.League club
teams as part of efforts to contribute
to society by supporting the sports
community.
Practicing Environmentally Conscious Management
The protection of the global environment has become an urgent matter of concern.
We are also addressing this issue through company-wide initiatives.
Internally, we identify areas that need to be reviewed regarding the office, internal
tools, and employeesʼ workstyle, and implement environmentally friendly measures.
Additionally, starting this year, we have purchased non-fossil certificates and
commenced initiatives to achieve virtually zero CO2 emissions at our offices in Japan.
Externally, we not only promote reducing paper usage and improving operational
efficiency through our service offerings but also support the activities of individuals
and companies with a low carbon footprint. In the future, we will consider offering
functions on our services to support users in reducing their environmental impact.
* For the definition and calculation method, please refer to p.83.
Money Forward Cloud: users associated with certified members 32,364
Money Forward Cloud: chambers of commerce in alliance 137
Money Forward X: services provided 180
25,258
FY2022 FY2023
123
126
Talent Forward
Society Forward
User Forward
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
22
Moving Employee
Potential Forward
In July 2023, I was appointed Group
Executive Officer and CHO (Chief Human
Officer), and Head of DEI (Diversity, Equity
& Inclusion). Since joining the firm in 2016, I
first prepared for our IPO on TSE Mothers at
the Corporate Planning Division. After the
IPO, as the Corporate Planning Division
Manager and Head of IR, I engaged in
corporate financing and the promotion of
dialogues with investors. In 2019, I became
the first female manager to take a parental
leave. Upon returning to work, I launched a
DEI Project to ensure that members who
came after me would be able to mark lifeʼs
milestones with peace of mind and to send
a message that it is possible to balance
management duties and family life, and
even enjoy it. I also led the sustainability
project and pushed forward with the
concept of “Talent Forward.”
In 2021, when Mr. Tsuji, CEO, asked me to
update the human resources framework to
align with the Companyʼs strategies and the
challenges it faced, I decided to switch to
HR. Building on the direction that
management wants to take and the
current challenges facing the organization,
I have been pushing forward with various
new measures such as revising the
performance evaluation system, HR
surveys, and developing training programs
to recalibrate both the “motivating” and
“supportive” aspects of the workplace.
Going forward I aspire to build an even
more powerful organization to bring our
Mission and Vision to life.
Talent Forward
Society Forward
User Forward
Developing Money Forwardʼs unique,
powerful, yet welcoming organization
Talent
Forward
Executives (p.76)
Group Executive Officer
CHO (Chief Human Officer)
Head of DEI (Diversity, Equity & Inclusion)
Chiaki Ishihara
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
23
1. Foster a safe work environment and corporate culture
We share a common set of values and aspire to the same worldview, reflected in our
Mission Vision Values Culture (MVVC), and implement measures to deepen the
understanding of the MVVC. We are working to create a working environment and
culture that is supportive of each one of our increasingly diverse members. (p.64
Initiatives for Initiatives to Instill Culture)
2. Recruit talented and diverse members who align with our MVVC
We believe that a team that aligns with our MVVC with diverse perspectives and
experiences is essential to creating new ideas and value, and we are working to create an
organization that attracts top talent not only from Japan but from around the world.
3. Create a system that maximizes individual potential
We are building systems to encourage members to continuously develop and take on more
challenges by continually updating our HR system and conducting surveys to provide
members with timely support. (p.25)
4. Foster autonomous personal development
Each member takes ownership of their development and we encourage our members to
grow autonomously. We are promoting not only experience on the job but also training
programs and effective feedback. (p.25)
5. Connect individual development to organizational development
We are working to link the continuous growth and challenges of each member with the
growth of corporate value, through such means as a goal-setting system that links the
company growth with the growth targeted by the individual.
In December 2023, we announced the “Talent Forward Strategy 2024,” outlining the Groupʼs approach to human
capital and policies going forward. We have reiterated the Groupʼs HR philosophy in this “Talent Forward
Strategy.” We will continue to bolster these five key tenets to bring to life our management strategies and the
Mission and Vision that lie beyond.
At Money Forward,
our employeesʼ growth is
our growth
FY2022 FY2023
Talent
Forward
Connect individual development to organizational development
Foster autonomous personal development
Create a system that maximizes individual potential
Recruit talented and diverse members who align with our MVVC
Foster a safe work environment and corporate culture
5
4
3
2
1
Achieve our business strategy
Realize our Mission and Vision
Talent Forward by the Numbers
Ratio of women among managers (overall/business positions)
Cumulative number of participants in Leadership Forward Program
Cumulative number of participants in manager basic training
Childcare leave acquisition rate (women/men)
Employee engagement (MF Group Survey)
20.2%/26.0%
126
419
100.0%/50.0%
20.4%/24.1%
179
591
92.9%/87.1%
Refer to p.87
Our “Talent Forward Strategy”
Talent Forward
Society Forward
User Forward
For the Groupʼs approach to human capital and details of our policy
in the future, please see “Talent Forward Strategy 2024.”
More Information
!
Talent Forward
Strategy 2024
* For the definition and calculation method, please refer to p.83.
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
24
The Group believes that building a motivating and supportive organization for our members will lead to their
aspirations of “creating more value through growth” and “achieving the Mission and Vision,” which, in turn, will
encourage organizational and personal development. This is why we carry out an anonymous survey called the
“MF Group Survey” every six months to visualize the state of the organization. Based on the results of this
survey, senior management and managers, then, drive initiatives forward to make the organization better.
We also conduct a non-anonymous survey called “MF Selfie Map” each month. This survey focuses on
such critical metrics as “whether the work is motivating” and “whether members have a perceived sense
of growth,” and members exhibiting changes arousing concern are cared for by us, HR (People Forward
Department and the HRBP of each company) in concert with their managers.
Previously our development support mainly consisted of making bold promotions to offer
candidates with opportunities to gain experiences in challenging situations. However, lately,
we have been bolstering our training programs including extensive leadership training.
In the “Leadership Forward Program,” which began in FY2021 to nurture management
leaders, executives including the CEO serve as lecturers and provide practical knowledge
including what they consider to be the most important leadership qualities at a 2-day
leadership retreat. From FY2024, we launched the “Leadership Forward Program Basics”
for new and aspiring managers, where we provide programs to enhance their fundamental
leadership capabilities, including leadership, organizational management, and critical
thinking. We have several new training programs to help members equip themselves with a
management perspective, such as a “Book club session” for higher-layer managers where
books selected by executives are discussed. What distinguishes our training programs from
others is that the executives themselves are involved in every step from the planning to the
execution. These programs allow the participants to communicate with the executives,
boosting their engagement and commitment. These training programs emphasize the
individualʼs proactive aspiration “to grow”
and participation is strictly voluntary.
There were more applicants than places in
the “Leadership Forward Program,” an
indication of the strong commitment
toward self-improvement of our Group
members.
Create a system that maximizes individual potential Foster autonomous personal development
Growth of the organization leads to the
growth of the individual and the
growth of the individual allows us to
achieve our Mission and Vision
To achieve our Mission and Vision, “personal development” is indispensable. The key tenets of “Create a system that maximizes individual potential” and
“Foster autonomous personal development” are also maintained in the five categories of the Groupʼs “Talent Forward Strategy” (p.24). Accordingly, we have
been constantly updating our measures to encourage personal development through building the organization, as described below. We will continue to update
the required systems, promote our “Talent Forward Strategy,” and aspire to bring our Mission and Vision to life.
FY2022
・
MF Selfie Map (non-anonymous survey
・
monthly)
FY2016・
MF Group Survey (anonymous survey
・
semi-annually)
Building an organization
FY2024
・
Leadership Forward Program Basics、
Book club session for our higher-layer managers
FY2022 - FY2023・
Goal-setting training, 1-on-1 training, Career training
FY2021・
Leadership Forward Program
FY2017・
Challenge System (internal mobility system)
Personal development
Leadership Forward Program Results
for FY2023
Satisfaction level
Recommended level
179(3 times in total)
4.7 (on a 5-point scale)
9.0 (on a 10-point scale)
Cumulative number
of participants
Talent Forward
Society Forward
User Forward
* For the definition of the cumulative number of
participants, please refer to p.83.
Deputy General Manager
People Forward Department
Division Manager
Talent Growth Division
Fuki Takeuchi joined Money Forward in 2021, after
serving at Nissin Foods Holdings Co., Ltd. She has
been at her current post since June 2023.
Fuki Takeuchi
Iʼve gotten so much stronger
now that Iʼve resumed strength
training, which I stopped
during pregnancy.
Forward
Voice
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
25
An organization that encourages individual development and collectively maximizes our value
Building an environment where members enjoy working and are able to grow through work is
essential for continuously delivering more value to our users.
The “MF Group Survey” is like a physical checkup that regularly checks the soundness of the
organization. When analyzing results of the surveys, we tend to focus on the points that are
relatively low or have fallen. However, just as in a physical exam where fundamental improvement
in oneʼs health is more important than minimal weight fluctuations, the key point of this survey is
whether the organization/work environment is leading to a perceived sense of growth in its
members. This is why we are prioritizing and implementing the necessary measures. A member
who had become settled into his work recently admitted not being able to experience growth as
much as before. For this member, we provided work experience at an accounting firm. This
experience, by allowing him to know the user better, provided him with the awareness that there
was still room for us to deliver exceptional value and that there were opportunities for him to grow.
Meanwhile, the “MF Selfie Map” is similar to a medical questionnaire that picks up on any
changes to the individual member. Even if the organization is in perfect health, individuals
change day by day. When an alert is flagged, we carry out a “Cross 1 on 1,” in which not only
the individualʼs direct-report manager but also those who are diagonally above them
provide counsel and address the individual from a multi-lateral perspective.
Our organization is a gathering of members who joined because they wanted to do good for society.
There is a limit to what one person can do but there is power in numbers and together we can do great
things. That is why I am committed to amplifying the value that our diverse members can offer together.
Deputy General Manager
SMB Business Promotion Department
Division Manager
Partner Development Division
Money Forward Business Company
Yoshihiko Okamoto joined Money Forward in February
2019. He has been in his current post since March
2023, after serving as the Head of the Hiroshima
Branch Office, and other positions. He heads a
30-member division engaged in new business
development with a professional service firm.
Yoshihiko Okamoto
I have started volunteering as a
career development teacher for
students!
Forward
Voice
Division Manager
Design Office BX Design Division
Money Forward Business Company
Ayumi Obara joined Money Forward as a designer in
January 2022. She has been in her current post since
June 2023. She heads a department that formulates
communication design and branding across the
company.
Ayumi Obara
I have been doing punishing
stretches and can now touch the
floor in a forward fold!
Forward
Voice
Nurturing my leadership in a whirlpool of excitement
As my role changed from leader to division manager and I became accountable to more stakeholders,
I sometimes felt that my perspective lacked depth and at times I was gripped by inexplicable anxiety.
This all changed when I participated in the hands-on learning workshops and sessions of the
“Leadership Forward Program” and took part in the exchanges with members of management and
colleagues in similar situations to myself. I learned that everyone was going through similar problems
and anxieties but continuing to step up to the challenge despite these obstacles, and then, what I
had previously felt as anxiety became a sense of excitement. Group discussions served as
eye-openers to gain deeper understanding about the perspectives of other job roles. At the same
time, I also learned what was expected of me as a designer. In other words, to deep dive into the
matter, identify the essential themes, and visualize value. These were my very strengths as a designer.
Before the “Leadership Forward Program,” I thought that in order to deliver as a leader I had to have the
same mindset as a business person, and out of desperation and anxiety, I focused on unlearning my career
as a designer. However, after the program, I was able to maintain my strengths as a designer, engage in
dialogues as a hub to connect designers and business side members, and generate communication that is
generous and tolerant. If we can all share and materialize this mindset, maximum performance will follow.
This is why I rarely determine a certain course of action in my division and instruct the members to follow
it. I merely provide a setting and points of view and let everyone discuss and vent their ideas. I try to create
a state where each person can proactively demonstrate his or her leadership.
I hope to continue involving my colleagues in this whirlpool of excitement and you will find me
enjoying this whirlpool more than anyone.
Talent Forward
Society Forward
User Forward
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
26
(1) Improving gender equality at the decision-making level
By design, we are a company that caters to a wide range of users, which makes it all the
more important that we adopt a diverse perspective. This is why as the first step we are
focusing on increasing the number of decision-makers who are women, the greatest
minority group. As a metric for motivation, a question in the “MF Group Survey” asks, “If
you were offered a management position or work that entailed greater responsibility than
you have now, would you take it?” To this question, we are aiming for a reply of 4.0 or above
on a scale of 1 to 5 for both men and women by November 2025. In August 2022, a
significant gender gap emerged with an average score of 4.2 for men and 3.8 for women.
The gap began to close in October 2023 with an average score of 4.2 for men and 3.9 for
women. Through initiatives such as the Parental Leave Guidebook, we will continue to
disseminate relevant information and create a culture where employees can step up to the
challenge with peace of mind even while marking lifeʼs milestones. We are also closely
monitoring the ratio of female managers as a “Talent Forward” metric but because of the
reasons explained below, we are following the gender gap* in each grade as an actual
metric in measuring gender equality at the decision-making level.
We aim to lower the average gender gap of 0.6 points for all grades as of February 2023
to 0.2 points by November 2025. In the meantime, we will check that hiring and evaluations
are being handled equitably and correct issues, if any.
Our Two Priorities in DEI
DEI (Diversity, Equity & Inclusion) is a crucial perspective that encompasses our “Talent Forward Strategy” (p.24). A diverse organization is essential for a company to continuously generate innovation (Talent
Forward Strategy 2). However, diversity alone will not be enough. For an organization to run smoothly there must be mutual acceptance between members with diverse experiences and values and they must also
be on the same page (inclusion) (Talent Forward Strategy 1 and 4). For such diverse talent to unleash their full potential, equal access to new challenges and equitable evaluations are also essential (Talent Forward
Strategy 3 and 5). As initiatives to deepen our understanding of DEI, we have conducted unconscious bias and cross-cultural communication training, in addition to publishing a DEI statement for our employees and
other stakeholders. DEI is an extremely broad concept and there are many aspects of DEI that we need to address. Nevertheless, bearing in mind our current situation and our general direction, we have identified (1)
Improving gender equality at the decision-making level and (2) Diversifying our engineering organization, as our top priorities, and we will drive forward with initiatives that focus on ensuring equity and inclusion.
・
At Money Forward, “Professional” is one of the qualities that define our culture and there is a climate that allows
members to unleash their leadership regardless of their position.
・
Grades are separately defined between “Management” and “Expert” according to the individualʼs aptitude and
orientation. As experts are also involved in the companyʼs decision-making, we focus more on job grade
distribution over the ratio of managers when measuring diversity.
(2) Diversifying our engineering organization
We believe that successfully onboarding engineers and bolstering our development framework
are keys to continuously developing quality products, and from FY2021, we have been hiring
engineers regardless of their Japanese language skills. Currently, non-Japanese members
account for 42.1% of our engineering organization (p.88). To make English the official language
of the engineering organization in FY2024, we began offering English language training
according to the individualʼs proficiency level in FY2022. The ratio of engineers with TOEIC
scores of 700 or higher, which was 41% in January 2023 was raised to 72% by November 2023,
and we are making good progress to reach our ultimate goal of 100% by November 2024. Going
forward, we will upgrade the level of training and upgrade the support system for even greater
English proficiency. We are also thinking of setting up metrics to measure the grade gap
between non-Japanese and Japanese members and ultimately bridge the gap between the two.
DEI is not going to be achieved overnight but will require continuous and consistent
efforts. Although different challenges will emerge as the organization grows and the
business climate changes, we will recalibrate as necessary and continue with our initiatives
to make Money Forward a stronger and more welcoming organization.
* Refers to the average grade of all full-time regular employees by gender (including employees seconded by the Company). Grades
1 through 7 are defined based on skills and personal contribution (However, excluding Company Executive Officers, Inclusive Course
Employees [employees with disabilities], and employees whose grade has not been determined due to the probationary period, etc.).
Talent Forward
Society Forward
User Forward
For details of our DEI initiatives,
please see the Companyʼs website
More Information
!
DEI
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
27
Our Business
02
CFO Message
Financial Highlights
Business Highlights
Business Domain
Home Domain
X Domain
Finance Domain
SaaS Marketing Domain
Global Strategy
SPOTLIGHT Account Aggregation
29
34
35
36
40
42
44
46
48
49
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
FY2023 Financial Results
In FY2023, thanks to high revenue growth in each domain, especially the Business
domain (p.36), consolidated net sales rose 41% YoY to 30,381 million yen, overshooting
the upper forecast limit, which had been upwardly revised during the period, as well as
achieving the initial forecast for the seventh consecutive year since IPO.
In terms of P&L, strengthening our disciplined investment approach and improving
profitability resulted in a consolidated EBITDA of minus 2,260 million yen and an EBITDA
margin of minus 7%, representing a 21-point improvement. As for financing, we procured
31,572 million yen in an overseas public offering of new shares in August 2021 and also
raised 12,000 million yen through the issue of convertible bonds (bonds with stock
acquisition rights) in August 2023. With cash and deposits standing at 38,856 million yen at
FY2023-end, we have secured the liquidity necessary to scale.
02 Our Business
CFO
Message
Executives (p.74)
Director
Group Executive Officer and CFO
Naoya Kanesaka
Turning profitable this year by balancing high growth
and improved profitability, eventually shooting for net
sales of 100 billion yen and EBITDA of 30 billion yen
+41%
YoY
(YoY)
(¥ mn)
FY11/18 FY11/19 FY11/20 FY11/21 FY11/22 FY11/23
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
■ Finance
■ X
■ Home
■ SaaS Marketing
■ Business
63
1,242
2,681
4,595
597
339
1,634
4,166
7,157
1,005
1,422
743
1,270
6,048 8,589
1,970
2,414
1,882
769
12,704
18,712
3,532
3,989
2,525 +52%
+27%
+28%
+47%
1,586 +36%
2,767
3,146
1,663
1,168
11,319
15,633
21,477
30,381
1,845
* The aggregate of net sales of each domain do not necessarily correspond to consolidated net sales as net sales
of “Other” are omitted from the graph.
29
Four Growth Strategies
The Group is pushing forward its four growth strategies.
Four Growth Strategies
1
Enhance value of back-office SaaS platform with
go-to-market strategy based on disciplined investment
Maximize synergies between domains and improve
company-wide productivity
4
Continue disciplined M&A (Group join) and optimize group
capital strategy
2
3 Create new user value through integrating SaaS and Fintech
❶Enhance value of back-office SaaS platform with go-to-market strategy based on
disciplined investment
We will further concentrate our management resources in the Business domain where
the ARR growth has been the steepest, while in the other realms, we will sustain growth
while prioritizing improving profitability. The main business model of the Business
domain is the SaaS business model, which records revenue as the service is used.
Compared to the model that records all revenue upfront at the time of implementation,
the SaaS model takes time to monetize, but it has a lower churn rate (the monthly
average churn rate of Money Forward Cloud for corporate customers was 0.8% in FY2023)
and a higher gross margin (86%*1
for back-office SaaS in FY2023), fueling expectations
for extremely high profitability in the medium to long term.
*1
Figure for the entire Business domain. Calculated based on definitions commonly used by global
SaaS companies. The cost portion includes communication expenses and system subscription fees
related to product development, server fees including for AWS, API connection fees, as well as
personnel expenses related to customer support, service infrastructure, and operators of STREAMED.
Personnel expenses for engineers and designers involved in product development are included in cost
of sales in the Japanese accounting standards and the Companyʼs statement of income.
❷Maximize synergies between domains and improve company-wide productivity
We are ramping up synergies between domains to improve Group-wide productivity.
We will do so through reciprocal customer transfers, for example, by encouraging
sole proprietor users of Money Forward ME to also use Money Forward Tax Return and
sharing product developments and functional developments across the Group, for
example, through the broad application of our core technology of account
aggregation (p.49).
❸Create new user value through integrating SaaS and Fintech
To make our Vision of “Becoming the financial platform for all” a reality, we will
need to provide direct solutions to the money issues encountered by individuals and
corporations, and to do that, it is critical that we strengthen our embedded finance
proposition. Currently, in each domain, we have some of the largest customer bases
in Japan, which as a platform has become a vanguard for integrating SaaS and
Fintech. Going forward, we will embed transfer and payment functions in Money
Forward Cloud and other cloud services, promote real-time credit and online factoring
using accounting data, and accelerate partnerships with financial institutions (e.g.
increase API connections) to provide unparalleled service offerings with added value.
Through these efforts, we will maximize SaaS recurring revenue, while increasing
transactional revenue by leveraging our SaaS customer base.
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
30
* We hold minority stakes in Mekari, Bizzi and Mesh.
* Susten Capital Management Inc. is an equity method affiliate
❷Expansion of TAM (Geographical Expansion)
•Pursuing future opportunities through access to cloud back-office SaaS market in SEA and North America
Business Area Strategy Track Records
Business/Home
SaaS Marketing
❸Expansion of TAM (Business Area Expansion)
•Enter SaaS marketing business which has large market potential
(September 2021) (August 2023)
(November 2017) (October 2020)
(December 2021)
(February 2020)
(July 2018)
❶Expansion of Product Line-up
Upsell products to existing customers (accounting firms and corporates) for ARR expansion
Expand range of best-in-class solutions to further enhance line-up to medium to large-sized/
pre-IPO companies and listed companies
Expand financial services and enhance value proposition
Business
Business
Home (June 2021)
(December 2023)
(May 2022)
(Multiple follow-on
investments since
January 2018.)
❹Continue disciplined M&A (Group join) and optimize group capital strategy
To punctuate our relationship as partners aspiring to the same Mission, we avoid
using the term “acquisitions” but instead refer to M&As as “Group joins.” We actively
engage in M&As (Group joins), minority investments, and business alliances to drive
inorganic growth. Since listing on TSE Mothers in 2017, we have welcomed seven
excellent companies to the Group.
There are three focal areas to our M&A strategy. The first area comprises M&As
centering on the Groupʼs biggest revenue driver, the Business domain, to expand our
product lineup. M&As and investments to geographically expand the Total
Addressable Market (TAM) in regions such as Southeast Asia and North America
make up the second area. And thirdly, we engage in M&As to expand TAM by entering
new business domains.
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
31
Group Join
We believe that “Talent and Culture” are the keys if we wish to continue growing
together with the newly joined companies. This is why we focus not only on setting
quantitative incentives but also on providing an environment where the newly joined
company and individuals can seek opportunities for new growth through the Group.
How deeply the Culture has been ingrained into all employees across the Group and
not just management will dictate the success of the PMI. To this end, we engage in
various activities that transcend company boundaries. Fortunately, as a result,
companies that have joined the Group have accelerated their growth post-merger.
November
2017
Klavis, Inc.
Established in 2012
Provides STREAMED, which converts paper evidence such as receipts into digital
accounting data, simply by scanning them. Customers are mainly accounting firms.
Money Forward Cloud excels in automating journal entries from digital data while STREAMED excels
in automating journal entries from paper sources, mutually complementing the value proposition
to users. User acquisition has also greatly increased by capitalizing on Money Forwardʼs sales
network. The cumulative number of users has topped 5,400 accounting firms owing to synergies
in both the product and sales front.
Company Overview Synergy Created by Joining the Group
Klavis, Inc.
Representative
Director and CEO
Kazuaki Kimijima
Knowledge Labo, Inc.
Established in 2012
Provides a cloud-based budget management software, Manageboard, which
visualizes finances by collecting, analyzing, and projecting managerial data, as well
as business administration consulting.
We cross-sell Manageboard to professional service firms and medium-sized companies that use
Money Forward Cloud. In our business administration consulting, we collaborate with Money
Forward to support the DX of back-office operations and management accounting of growing
companies.
SMARTCAMP Co., Ltd.
Established in 2014
Provides holistic support for sales and marketing of SaaS companies through the
SaaS comparison site, BOXIL SaaS.
SMARTCAMP makes up the SaaS Marketing domain, one of the five domains of the Group, and its
sales account for more than 10% of the total sales of the Group. In conjunction with BizHint, Inc.
becoming a wholly-owned subsidiary of SMARTCAMP in December 2023, we are expanding our
marketing and sales support of SaaS companies.
R&AC Co., Ltd.
Established in 2004
Provides V-ONE Cloud and Victory-ONE/G5, cloud services for reconciliation of
receipts and receivables management.
On the sales front, we collaborate in serving mainly medium-sized and large companies, while on
the product front, we are developing the collaboration of V-ONE Cloud and the receivable billing
function of Money Forward Cloud ERP.
HiTTO Inc.
Established in 2006
Provides the internal AI Chatbot, HiTTO. Automates internal inquiries to the
back-office divisions, thereby boosting operational efficiency and internal DX.
We have been expanding the number of HiTTO users by leveraging Money Forwardʼs networks and
customer base. Going forward, the HiTTO brand will be integrated into Money Forward Cloud, and
through further collaborations of the two services, we will push for even more users and even
greater usability.
Knowledge Labo, Inc.
Representative
Director and CEO
Hidetsugu Kunimi
SMARTCAMP Co., Ltd.
Representative Director,
President and CEO
Shion Hayashi
R&AC Co., Ltd.
Representative
Director
Hideomi Tachikawa
HiTTO Inc.
Representative
Director and CEO
Akito Kimura
* Fully integrated into Money Forward effective March 1, 2024.
Nexsol CO., LTD.
Established in 2014
Provides a wide range of financial consultation services, including but not limited to
insurance, by financial planners.
We are pushing collaborations with products including Money Forward ME and Money Forward
Personal Financial Consulting. We will continue to join forces to enhance user value proposition and
raise the usability of our financial planning services.
BizHint Inc.
Service launch in 2016 / Established in 2022
Operates BizHint, a platform for managers and decision-makers that supports BtoB
marketing.
Since joining the group, we have been connecting the membership base of BizHint, Inc.,
comprising more than 600,000 managers and decision-makers, with the existing businesses of
SMARTCAMP Co., Ltd., including BOXIL SaaS, BALES, and ADXL, and conducting precise matching
of users with companies.
Nexsol CO., LTD.
Representative
Director
Michiteru Kokatsu
BizHint Inc.
Representative
Director
Akira Seki
July
2018
February
2020
October
2020
December
2021
May
2022
December
2023
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
32
Active Dialogue with the
Capital Market and Feedback to
the Management and Members
My name is Yumiko Nagao and I have been appointed as Group Executive Officer in
charge of Finance and IR since December 2023. Having commenced my journey with the
company in 2018, I have been intricately involved in diverse facets of corporate
development, particularly in the realm of enhancing corporate value through strategic
initiatives such as M&As, as well as equity and debt financing, including 4 equity offerings
and issuance of convertible bonds (12 billion yen) in August 2023.
Our organizational trajectory has witnessed substantial growth, a testament to our adept
utilization of raised funds. It is our steadfast commitment to perpetuate a constructive dialogue
aimed at aligning with the expectations of the capital market, thereby catalyzing further growth.
We pledge not only to disseminate information in a timely and equitable manner but also to
refine our communication by providing comprehensive and easily comprehensible messages. Our
dedication extends to the continuous enhancement of our practices, informed by the feedback
garnered through the daily engagements between investors. The medium- to long-term financial
target disclosed in January 2024 was also decided based on these investor feedbacks. Given
more than 40% of our shareholder composition comprises overseas institutional investors (p.89),
we underscore the significance of timely disclosure and direct communication in English as well.
This commitment materializes through initiatives such as conducting financial results briefings in
English on the same day as the announcement in Japanese, participation in IR conferences both
in Japan and overseas, as well as organizing every IR meeting sans translators.
Feedback stemming from our interactions with investors and analysts during IR meetings
is diligently reported to the Board of Directors and the leaders of each business division.
These insights, in turn, are strategically integrated into our management and business
strategies. Internally, we conduct earnings calls wherein over 100 employees actively
participate in a dynamic Q&A session with the CFO after each financial results
announcement. By fostering opportunities for our employees to engage with the
perspectives of the capital market, we ensure that each member comprehends and
appreciates the expectations of our stakeholders, thereby fostering active collaboration and
understanding in support of our Investor Relations initiatives.
Financial Results Briefings for Institutional
Investors and Analysts (Japanese): Every Quarter (4)
Financial Results Briefings for Earning Calls for Institutional
Investors and Analysts (English): Every Quarter (4)
IR Meetings: Approximately 400
Analyst Coverage: 9 (including 5 from non-japanese firms)
Summary of Investor Relations Activities during FY2023
Medium- to Long-Term Financial Targets and Guidance for FY2024
Our medium- to long-term policy is to aim for a balance of high sales growth and
improved profitability. As indicators, we aim to achieve net sales of 100 billion yen or more
and EBITDA of 30 billion yen or more in FY2028. In the long term, we are aiming for an
EBITDA margin of 40% or higher.
Based on this medium- to long-term policy, in FY2024, the Company will continue to
concentrate its business resources in the Business domain and maintain high growth
rates of both net sales and SaaS ARR at +30% YoY or higher, respectively, while
right-sizing costs mainly by keeping advertising expenses down to 15% to 17% of net
sales (18.7% in the previous fiscal year) and personnel expenses and outsourcing
expenses down to 64.0% to 69.0% of net sales (74.8% in the previous fiscal year), for
better profitability. In the four domains other than Business, we will sustain growth but
prioritize improving profitability. The guidance for FY2024 is as shown below and we
project an improvement of 10% to 15% YoY in the EBITDA margin.
We will continue to agilely deploy strategies to make our Mission and Vision a reality
so that we will be able to meet the expectations of our investors and shareholders into
the future.
Full year
YoY Growth
Net Sales
¥39.5-42.0 bn
30.0〜38.3%
SaaS ARR
¥30.0-31.6 bn
29.6〜36.6%
EBITDA
¥1.0-3.0 bn
-
(¥ mn)
11,319
FY11/20 FY11/21 FY11/22 FY11/23 FY11/24 FY11/25 FY11/26 FY11/27 FY11/28
(1,951)
(6,029)
430
(2,260)
¥100bn+
15,633
21,477
30,381
39,500〜42,000
FY11/28 net sales
¥30bn 40%+
FY11/28 EBITDA
EBITDA margin
in longer term
Medium- to Long-Term
Financial Targets
Executives(p.77)
Group Executive Officer
Head of Finance and IR
Yumiko Nagao
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
33
Highlights 01 Financial Highlights (FY2023)
Consolidated Net Sales
¥30,381mn
Consolidated net sales jumped 41% YoY, topping ¥30 billion.
In particular, sales of Business domain, which accounts for
more than 60% of total sales, soared 47%.
(FY)
(¥mn)
11/18
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
* SaaS ARR is 12 times the monthly recurring revenue (MRR) of Business, Home, X, and Finance
domains in the final month of each term. As for the bookkeeping service STREAMED, its MRR is
calculated as one-third of its service revenues in Q1 and Q2 to adjust for seasonal factors.
4,595
11/19 11/20 11/21 11/22 11/23
7,157
11,319
15,633
21,477
30,381
YoY +41% YoY +42%
SaaS ARR surged 42% YoY. While ARR expanded in all
domains, corporate ARR in Business saw a marked increase
of 46%.
SaaS ARR
¥23,146mn
(FY)
(¥mn)
11/18
4,164
11/19 11/20 11/21 11/22 11/23
6,319
8,439
11,227
16,299
23,146
22,000
16,000
12,000
8,000
4,000
0
* EBITDA = Operating profit/loss + Depreciation and amortization + Tax expenses
included in operating expenses + Share-based remuneration expenses
EBITDA improved by ¥3.8 billion over the previous year.
EBITDA margin stood at (7)%, representing an improvement of
21 points YoY. We expect further improvements in profitability
toward our goal of achieving a positive EBITDA in FY11/24.
EBITDA
¥(2,260)mn
Excl.
advertising
expenses ¥3,409mn
(FY)
(¥mn)
11/18
(595)
EBITDA
(144)
11/19 11/20 11/21 11/22 11/23
4,000
2,000
0
(2,000)
(4,000)
(6,000)
(8,000)
(2,098)
(578)
(1,951)
(6,029)
1,411
3,126
430
3,409
(2,260)
556
EBITDA(excl. advertising expenses)
Business Domain (Corporate Customers)
Paying
customers 301k companies ARPA¥60,911
The number of paying customers increased steadily, up 27.8%
YoY. ARPA continued to climb firmly, up 12.1%, mainly on the
expansion in the mid-market user base.
(FY)
(10k companies) (¥)
11/19
35
30
25
20
15
10
5
0
120,000
100,000
80,000
60,000
40,000
20,000
0
* “Total users” is the cumulative number of app downloads and online registrations
for Money Forward ME.
* “Corporate customers” are paying subscribers of services provided in Business
domain, consisting of 1) professional service firms and their clients and 2)
businesses and sole proprietors who have subscribed via direct marketing, including
the web channel or field sales. * ARPA: average revenue per paying account.
Calculated as: (ARR as of the end of a particular term) / (number of customers).
11.8
11/20 11/21 11/22 11/23
14.2
18.3
23.6
30.1
The number of total and paying users is expanding steadily,
topping 15.3 million and 520,000, respectively.
Home Domain (Individual Customers)
Total users 15.3mn Paying users 529k
(FY)
(10k users) (10k paying users)
11/18 11/19 11/20 11/21 11/22 11/23
1,600
1,400
1,200
1,000
800
600
400
200
0
The corporate headcount increased by 236 over the previous
year and crossed 2,000 through the global hiring of excellent
and diverse talents.
39,488
680
15.7
850
20.7
1,070
26.8
1,230
34.7
1,400
40.6
1,530
43,864
46,187
54,330
60,911
Paying customers
ARPA
60
50
40
30
20
10
0
52.9
Employees
2,130 YoY +236
(FY)
(Employees)
11/18
394
11/19 11/20 11/22 11/22 11/23
691
865
1,248
1,894
2,130
2,000
1,600
1,200
800
400
0
Total users
Paying users
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
34
Business Home Finance SaaS Marketing
X
売上構成比グラフ
Highlights 02 Business Highlights (FY2023)
SaaS Applications for
Back-Office Operations
Provides Money Forward Cloud and
other cloud services for back-office
operations (i.e., accounting and
finance, HR, legal affairs, and IT) to
companies at various growth stages,
from startup to post-IPO expansion.
Also offers payment, fund procurement,
and other fintech services to deliver
values beyond simply streamlining
operations.
paying corporate customers
301k+
61.7%
Sales growth (YoY)
+47%
* 1 “Users” is the cumulative number of app downloads and
online registrations for Money Forward ME.
* 2 The total amount of financial assets that is aggregated in
Money Forward ME and white-label services for individuals
provided by Money Forward X.
Personal Financial
Management (PFM) Services
Provides Money Forward ME and other
financial services for individuals. The
number of Money Forward ME users
has exceeded 15.3 million*1
, with
paying users topping 520,000 and the
asset balance of connected services
reaching ¥21 trillion*2
. Also expanding
services for resolving financial issues,
such as consultations by financial
planners.
users*1
15.3mn+
13.1%
Sales growth (YoY)
+27%
Co-created Financial Services
Provides the Mikatano series, a digital
service for regional SMEs, and other
services co-created with partner
banks. Applies a B2B2X model, in
which Money Forward services are
provided via our partners to their
customers. Focused on collaborating
with local banks with the aim of
bridging the regional digital divide.
Financing Services
Provides Money Forward Kessai, Money
Forward Early Payment, and invoicing
BPO and online factoring services.
Enables quick credit screening based
on a proprietary model and swiftly
addresses the needs of companies to
outsource invoicing and expedite cash
flow management.
SaaS Marketing Platform
Provides SaaS companies with
end-to-end marketing support through
comparison site BOXIL SaaS, which
produces matches between SaaS
providers and companies wishing to
adopt SaaS. BizHint, a website
dedicated to cloud adoption and
enhanced productivity, has recently
been added to the product lineup.
Mikatano series adopted by
36 financial institutions
8.3%
Sales growth (YoY)
+52%
* The cumulative amount transacted via Money Forward
Kessai, Money Forward Transaction Finance for Startups, and
Money Forward Early Payment. * Number of BOXIL SaaS members as of March 2022
in cumulative
transaction volume*
¥200bn+
5.2%
Sales growth (YoY)
+36%
No. of members
150K*
11.6%
Sales growth (YoY)
+28%
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
35
■Mission and Business Opportunities
Business Forward. Move Your Work Forward.
Money Forward Cloud is a SaaS service that connects various back-office data to
streamline operations in accounting and finance, HR, and legal affairs. Since the service
was released in 2013, we have been expediting the DX of back-office operations of sole
proprietors and SMEs, and since 2020, we have been expanding our reach to target
medium-sized companies.
Empathy for our customers has remained a constant in the values that we embrace.
The Group views the back office not as a target for streamlining but as the backbone of
a company and the source of its strength. We aspire to “Move Business Forward. Move
Your Work Forward.” through operational reforms based on digitalization and cloud
adoption.
Steady Cloud Adoption in the Back Office Backed by Government Promotion of
Digitalization and Law Revisions
According to a survey by Gartner, Inc.* of the U.S., Japan is ranked as a “resistive
country” more than seven years behind the U.S. in adopting cloud services. Thus, there is
ample room for the penetration of such services. In addition, the recent proliferation of
remote work and institutional reforms toward digitalization have led to steady cloud
adoption and substantial market expansion.
In its Interim DX Report 2 (December 28, 2020), METI warned that existing systems,
which are outdated and becoming increasingly complex and opaque, will hinder DX. At
the same time, the report urged companies to strategically deploy DX with the aim of
transforming into digital companies by 2025. This also underscores expectations that
Japan as a whole will pivot toward cloud services.
Furthermore, the favorable business environment will likely prevail thanks to such
factors as the expected rise in demand for replacing existing systems in response to law
reforms that will significantly impact back-office operations, including compliance with
the Qualified Invoice System and the Electronic Record Retention Law, which went into
effect in October 2023. Against this backdrop, the Group anticipates pronounced
growth as the leading provider of cloud-based ERP.
* Based on the percentage and growth rate of cloud spending in 2022 (by country).
02 Our Business
Business
Domain
Executives (p.74)
Director, Group Executive Officer
Money Forward Business Company COO
Masanobu Takeda
Executives (p.77)
Group Executive Officer
Money Forward Business Company CSO
Kazuya Yamada
Executives (p.77)
Group Executive Officer
Money Forward Business Company VPoE
Ryo Shibuya
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
36
■Our Competitive Advantage
Providing Products that Fulfill the Needs of Every Type of
Company from Sole Proprietors to Medium-Size Companies,
and Even Large Corporations
Money Forward Cloud began as a tax return and accounting
software product targeting sole proprietors and SMEs.
Currently, our product lineup has expanded beyond
accounting and finance to fulfill the needs in various areas
including HR, legal affairs, and IT, of companies of varying
stages of growth, from startup to the post-IPO expansion
phase (See diagram below).
Efficiency and Convenience Made Possible by Cloud Services
We capitalize on the features of cloud services to raise
efficiency in various operations. For example, in the area of
accounting and finance, we automate data and journal entries
by connecting data with an array of external services
including banks and credit card services, electronic money,
and POS cash registers. In addition, by leveraging the latest
technology such as generative AI, we can, for example,
prompt account titles in the consolidation process and
automatically generate payroll calculations. In the HR area,
employee onboarding and offboarding procedures, as well as
attendance can be managed on the cloud. Also, by
connecting attendance data to the payroll system, payroll
calculations and salary payments can be completed via the
cloud. Furthermore, multiple users anywhere and anytime can
operate the system across various devices, as long as there is
Internet connection, and unlike conventional packaged
software, we can provide free and quick updates to comply
with law revisions or consumption tax changes as well as daily
service improvements (See diagram below).
Sole proprietors SMEs
Medium-sized and
pre-IPO companies Listed companies
Mainly for professional service firms Mainly for medium-sized companies
Product Lineup that Fulfills the Needs of Every Type of Company
For sole
proprietors For SMEs
For medium-sized,pre-IPO,
and listed companies
For companies of all sizes
Reduces time and
effort of data entry
Gains intelligence
through AI
Can be used anytime,
anywhere
Data is securely
saved
Updates are free Offers extensive
services
Efficiency and Convenience Made
Possible by Cloud Services
Money Forward Cloud Accounting Holds Top Market Share
Among Accounting Firms
We have strengthened partnerships with professional service
firms, who are vital partners in resolving managerial issues of
companies across the nation. Currently, our roster includes
32,364 certified members*1
of professional service firms(p.65).
Furthermore, Money Forward Cloud Accounting holds top
market share*2
as the accounting software used the most by
accounting firms. In addition to bolstering the environment
where professional service firms can unleash their expertise
and offering Money Forward Cloud, we aspire to be a business
partner who addresses and resolves the various challenges
facing professional service firms.
*1
For the definition and calculation method, please refer to p.83.
*2
Source: Materials for the Joint Regular Management Workshop for
Accounting Firms, Funai Consulting Incorporated (December 9, 2023)
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
37
usersʼ accounts receivable/accounts payable information on SaaS applications. We
will tap into the data accumulated in Money Forward Cloud to create further value
beyond streamlining and optimize user experience. From now on, we will further drive
our “SaaS and Fintech Strategy” forward, ultimately making SaaS and finance
seamless to deliver a wide range of options such as payment and funding in order for
the businesses of our customers to grow.
●Money Forward Pay for Business
We provide Money Forward Pay for Business as a fintech service that uses data from Money
Forward Cloud. As a payment method, we offer Money Forward Business Card.
●Online Factoring
Biz Forward, Inc., a joint venture with Mitsubishi UFJ Financial Group, provides SHIKIN+, an
online factoring service (p. 44). Connecting these services with Money Forward Cloud and
embedding the factoring function in the SaaS application translates into smoother funding.
●Money Transfer Platform
We are developing a platform that ensures a seamless process up to and including money
transfers that can be completed entirely in the system by embedding remittance functions
into Money Forward Cloud. The remittance functions embedded in Money Forward Cloud will
eliminate the separation of back-office and payment operations, enabling an end to end
service including payment.
Providing back office
SaaS applications
Paper
data
Creation of new
fintech services
Accounting
Development of
BtoB payment
services
HRIS
Invoice
Issuing
Invoice
Receiving
Cloud
adoption
Data
accumulation
■Growth Strategy
In the Business Domain, the two pillars of our growth strategy are the
“Component-based ERP Strategy” and the “SaaS and Fintech Strategy.”
The Component-based ERP Strategy
Among our service offerings is Money Forward Cloud ERP, a cloud-based ERP for
growing and medium-sized companies. We have adopted a component-based ERP
architecture that enables users to start from a single service, such as for expense
reimbursement or complying with the Qualified Invoice System. By making it easier to
deploy components in phases starting from areas where customers face pressing
issues, we are seeing an uptick in adoption among medium-sized and large
companies.
We are also seeing cases where companies are opting for not just one but multiple
services, such as the additional deployment of services in line with business growth
and ahead of IPOs, or multiple group companies starting to use Money Forward Cloud
services in the process of driving the groupʼs digital transformation from the
standpoint of compliance with laws and costs.
SaaS and Fintech Strategy
Many companies have been steadily digitalizing and adopting cloud services in
their back-office operations, prompted by the governmentʼs promotion of DX and
the need to comply with laws. This has been conducive to the accumulation of
Before adoption
Adoption in stages
in combination with
existing products of
other companies is possible
Improving operational
flow by fully covering
back-office operations
Expense
Payroll
Accounting
Invoice
Issuing
Expense
Payroll
Accounting
Invoice
Issuing
Expense
Payroll
Accounting
Invoice
Issuing
Introduction
01
Sustainability
02
Our
Business
03
Values
&
Culture
04
Governance
05
Facts
&
Data
38
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024
Money Forward Integrated Report “Forward Map” 2024

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Money Forward Integrated Report “Forward Map” 2024

  • 1. Money Forward. Move your life forward. Forward Map 2024 Integrated Report 2024 Money Forward, Inc.
  • 2. Moving Life Forward in Your Own Way at Your Own Pace Live in peace with your loved ones. Immerse yourself in what you really want to do. Be up for new challenges and create social value that never existed before. Money is indispensable for making a prosperous future a reality. That is why Money Forward aspires to a society where everyone can address money in a positive frame of mind, move forward at their own pace, and navigate lifeʼs challenges. This is for everyone who trusts and supports us. Letʼs continue to work together and make strides forward!
  • 3. CONTENTS Mission Vision Values Culture Value Creation Model CEO Message Our Footprints and the Future of Money Forward 2 4 6 12 Introduction Three Priority Themes User Forward ーMoney Forward Cloud User Interview ーMoney Forward ME User Interview Society Forward Talent Forward ーTalent Forward Strategy ーDEI (Diversity, Equity & Inclusion) 15 16 18 20 23 27 01 Sustainability Financial Data ESG Data SPOTLIGHT Non-Japanese Members Stock Information / Company Information 83 84 88 89 05 Facts & Data Corporate Governance Dialogue with External Directors Executives Compliance Risk Management Security 67 70 74 78 79 80 04 Governance CFO Message Financial Highlights Business Highlights Business Domain Home Domain X Domain Finance Domain SaaS Marketing Domain Global Strategy SPOTLIGHT Account Aggregation 29 34 35 36 40 42 44 46 48 49 02 Our Business User Focus ーDialogue with CPO and PdM Tech & Design ーDialogue with CTO and CDO ーMoney Forward Vietnam ーMoney Forward Lab Fairness Culture SPOTLIGHT Professional Partners 03 Values & Culture 51 56 59 60 61 62 65 An Episode of Moving Life Forward Forward Voice
  • 4. Mission Our unrelenting commitment to society Money Forward. Move your life forward. ʻMoneyʼ 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. Vision The path toward fulfilling our mission Becoming the financial platform for all We aim to solve financial issues of all individuals and businesses through building an open and fair financial platform and providing essential services. Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 2
  • 5. Values Our Values are the guiding principles that allow us to achieve our Mission. We always keep our users foremost in our minds, no matter the constraints. We seek to understand their core challenges and deliver value that exceeds both user expectation and imagination. We believe that technology and design can truly make a difference in the world. By leveraging the best of both, we can bring new value to our users and move society forward. We vow to be fair, honest and open-minded in every interaction with our stakeholders. This includes our users, employees, shareholders, and society as a whole. User Focus Tech & Design Fairness Culture We at Money Forward deeply cherish our Culture. We make speedy decisions, take immediate action, and accomplish things in the shortest time. We aim for high standards of professionalism. We strive to grow and achieve the best results. We approach our work with a team-oriented mindset to reach our goals. One for all, all for one. Speed Professional Teamwork We strive to always be thankful, respectful, and sincere towards everyone. We strive to continually evolve because we know the world around us is constantly changing. Enjoy work, enjoy growth, and enjoy life. Respect Evolution Fun Update! Update! Update! Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 3
  • 6. Mission Our unrelenting commitment to society Money Forward. Move your life forward. Vision The path toward fulfilling our mission Becoming the financial platform for all Forward Model Value Creation Model Values Input Human Capital Social Capital Intellectual Capital Financial Capital Output Outcome User Focus Tech & Design (p.51) (p.56) (p.61) Fairness Speed Professional Teamwork Respect Evolution Fun Sustainability Growth Strategies Business Area Three Priority Themes Synergy creation and higher productivity Integration of SaaS and Fintech M&A strategy execution Governance that Balances Offense and Defense Advancement of value proposition Business Home X Finance SaaS Marketing Culture (p.5) (p.30) (p.5) (p.62) Governance(p.66) (p.36) (p.40) (p.42) (p.44) (p.46) User Forward Moving Usersʼ Lives Forward We aim to capitalize on the powers of technology and design to deliver services to various users to solve their money issues. (p.16) Society Forward Moving Society Forward We aim to build a better society by making policy proposals and co-creating with diverse partners. (p.20) Talent Forward Moving Employee Potential Forward We aim to create an environment that enables our superior and diverse talent gathered around the world to unleash the capabilities and achieve continuous growth. (p.23) Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 4
  • 7. Input Output Used by many users as a result of service improvements and new service developments. User Forward (p.16) 0.8% 0.8% ¥135.2bn ¥287.2bn 235,798 FY2022 FY2023 FY2023 FY2022 FY2023 FY2023 67 81 ¥281,000 ¥295,000 ¥7.7tn ¥11.0tn ¥17.3tn ¥21.3tn Money Forward X: partner companies Money Forward ME: yearly improvement in personal finance Amount of assets managed under all integrated accounts Amount of financial assets under all integrated accounts Businesses Individuals We are supporting the growth of individuals and organizations to maximize the potential of diverse and outstanding talent. We are also creating an environment and culture where diverse talent can work with peace of mind. Talent Forward (p.23) Ratio of women among managers (overall / business positions) Cumulative number of participants in Leadership Forward Program Cumulative number of participants in Manager Basic Training 126 419 20.2%/26.0% 100.0%/50.0% 179 591 20.4%/24.1% 92.9%/87.1% Refer to p.87 Childcare leave acquisition rate (women / men) Employee engagement (MF Group Survey) 301,233 FY2022 FY2023 Partnerships are increasing as a result of our co-creation with diverse partners to resolve social issues. Society Forward (p.20) 123 126 25,258 137 180 32,364 We uphold Tech & Design (p.56), as one of our Values, and maximize the power of technology and design. We also steadfastly maintain a sound and stable financial foundation (p.29). Intellectual Capital Cumulative number of registered intellectual property rights (Total patents, design rights, and trademarks) Account aggregation technology (p.49) Number of connected services : corporate 2,382/consumer 2,531 ¥38,856mn/¥34,660mn 239 Cash and deposits / Net assets Financial Capital We will hire outstanding talent who align with our Mission Vision Values Culture (MVVC) with diverse perspectives and experience from all over the world not limited to Japan. Human Capital Group employees Ratio of female employees 34.5% 16.6% 2,130 Ratio of non-Japanese members Social Capital We uphold Fairness (p.61), as one of our Values to deal with all stakeholders with fairness and integrity, and we are building trusting relationships with diverse partners, which are indispensable for resolving social issues. Trusting relationships with diverse partners The Group has set priority themes (Materiality) in the three areas of “User,” “Society,” and “Talent” to make our envisioned society a reality. In tackling these themes, we are investing the powers of technology and design in the name of intellectual capital, the cash and deposits required to scale up our business as financial capital, trusting relationships with our partners as social capital, and the outstanding and diverse talent fostered through recruitment and development as human capital. By engaging in activities based on our Values (code of conduct) and growth strategies, these capitals have generated outcomes that uplift the potential of users, society, and our employees, which are the goals of each theme. While it is not easy to quantify such diverse outcomes, the Group uses “Sustainability Indicators” (for the definition and calculation method, please refer to p.83.) to measure the achievement of the three materiality themes, discloses them as output, and keeps a close eye on the changes over time. We will continue to explore appropriate indicators from medium- to long-term perspectives and revise them, as necessary, going forward. SaaS applications for back-office operations: paying customers Money Forward Cloud: corporate customer churn rate Money Forward Kessai and Early Payment: cumulative amount of receivables Money Forward Cloud: users associated with certified members Money Forward Cloud: chambers of commerce in alliance Money Forward X: services provided Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 5
  • 8. We live in an age of uncertainty: All the more reason to pave a path toward the ideal future. Representative Director President and CEO Yosuke Tsuji This year marks Money Forwardʼs 12th year since its founding. My gratitude is endless for all those stakeholders who continue to support us. This year we will continue to deploy the four growth strategies (p.30) that we have been pursuing to achieve our Mission of “Money Forward. Move your life forward.” We will also set the stage for our transformation into the profit-making phase through improved profitability and a positive EBITDA. All of us at Money Forward are ready to make a concerted effort toward this goal. We, therefore, humbly ask for your ongoing support and guidance. Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 6
  • 9. The social impact of the generative AI, “ChatGPT,” has been perceived with shock across all sectors. While some view AI as a threat, I am convinced that how we harness AI in business will become the nexus of management strategies going forward. The Group has wasted no time in responding to these changes by adopting AI in existing service offerings and accelerating new business development. We can also expect to see the huge benefits of AI use in operational tasks, such as reduced costs and improved productivity. As we face these changes in the landscape, we will bolster our support for the growth of our customers by ramping up our AI use (p.58) to achieve our Mission of “Money Forward. Move your life forward.” Along with “high-power agility” to catch any issue requiring immediate responses coming our way, as a CEO, I am also keenly aware of the need to have a “medium- to long-term vision.” I need to grasp global and macro trends, think through what preparations are required to stay ahead of the curve three years, five years, and ten years from now and put them into action. Because we live in an age of uncertainty, I believe these are the capabilities that are required of CEOs. While the Group values speedy business management as evidenced by its monthly new product releases and updates, it is also an undeniable fact that Monozukuri takes time. Bringing a product that is truly needed by society into the world requires the assiduous process of countless iterations of failure and verifications and repeated testing based on user input. It is not an exaggeration to say that Money Forward was built on the accretion of this very process. Money Forward ME (p.41), with its number of users topping 15.3 million in total, has grown to become the No. 1 service in Japan, and yet this product took 12 years to scale and reach this many users. For a CEO, taking so long can be a frustrating experience but it also illustrates the complexity and the gratification that Monozuruki brings. There are many instances when I think, “If only we were more capable.” Nevertheless, thanks to your support, I think we are gradually moving closer to having an impact on society, and at the same time, I am also feeling we are actually making a difference. Take, for example, if our corporate customers using Money Forward Cloud can reduce the number of hours spent on accounting by one hour per day, then approximately 20 hours would be saved a month, adding up to approximately 600 hours of unfettered time for 30 companies. Currently, 150 thousand companies use Money Forward Cloud, meaning, by a rough estimate, we would have created approximately 3 million hours of value. This means more time for our customers to focus on their core endeavors. This is exactly the society that we have envisioned, and we are slowly but surely bringing such a society to life. Fortunately, Money Forward has become a gathering place for outstanding talent and many members are growing into leaders who can be relied upon to make everyday decisions. I am empowering our whole organization by proactively entrusting leadership to members who are capable of taking proactive action by putting users into the driving seat, as well as framing medium- to long-term strategies. And by delegating authority to take action, I am providing even more growth opportunities. That said, my duty as a CEO, is to leverage my “high-power agility” to deal with changes that occur right before our eyes and predict what lies beyond these changes with my “medium- to long-term vision,” determine the role society will demand in the future, decide which seeds to sow now, and take the required action. I donʼt want to chase change. I would rather anticipate change and edge closer to the ideal future, as quickly as possible. This is the vision I have for myself. Monozukuri (Product creation) takes time. This is why CEOs must equip themselves with “high-power agility” and “a medium- to long-term vision” Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 7
  • 10. Just as we more often hear the terms, “Fintech” and “SaaS,” which were almost unheard of 12 years ago, we need to take on the challenge of bringing things into the world that did not exist before, to keep society moving forward. Of course, we cannot do this alone, and it will only be possible with the presence of our stakeholders who share a compelling vision and support us to move it forward. Challenges inevitably entail failures, but failures will turn into successes through learning from our mistakes and perseverance. The important thing is not to let failure be the end result. For example, we are leading the way in offering features that leverage AI, as described above, while we also offer products such as the Mikatano series (p.43) to advance digitalization and the DX of regional SMEs where the information gap seems to be the most profound. A partnership between a venture and regional financial institutions may be a rare example, but it reflects our unique and long track record of building trust with regional financial institutions. We will continue to serve as a trigger for our customers, the regional SMEs, to start adopting digital practices. By paving the way and doing things that nobody has done before, we hope our customers feel that they were able to take on new challenges because Money Forward was there to back them up. And someday, we hope that our services become a part of the social norm so that nobody even thinks about them anymore. We aspire to disruptive growth and not an extension of the status quo. At Money Forward, we do it because nobody has done it before Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 8
  • 11. To bring the society we envision to life and sustainably enhance our corporate value, we have identified the three materiality themes of “User Forward,” “Society Forward,” and “Talent Forward” (p.15). They embody our relentless efforts to drive our usersʼ lives and businesses forward and make value propositions to revitalize society, and our aspiration to provide an environment where the individuals who work at Money Forward can harness their strengths and capabilities to make this vision a reality. Among these themes, I have been putting the most effort into “Talent Forward,” i.e. investments into human capital, because I believe Monozukuri is essentially about “People-building.” Recently, I have been working on further enhancing the quality and quantity of my internal communication. This includes regular 1 on 1s with division leaders; my full commitment to the “Leadership Forward Program” (p.25), our leadership development program since 2021; taking the time for dialogue with newly onboarded members; and direct messages twice a month at the companywide Morning All-hands meetings. I am also preparing to send out regular internal communications to share “whatʼs on the CEOʼs mind.” What began as a startup with a few people has grown into an organization with over 2,100 members in the past 12 years. 16.6% of our employees are Non-Japanese members and it is no longer unusual to hear lively conversations in languages other than Japanese in the office. To maximize the performance across the organization born through the synergy of diverse human resources enhancing each otherʼs strengths and compensating for each otherʼs weaknesses, I will continue to champion diversity management as part of our growth strategy. For each of our diverse members to unleash their strengths, it is imperative that, as the CEO, I carefully articulate, and build an organization where all employees can aim for our common goal. It is this concept that also led to the update of our Values and Culture, which underpin Money Forward. To raise greater awareness of our unchanging focus on “design-driven thinking” and “design-driven management,” we transitioned from defining our values as “Technology Driven” to “Tech & Design” (p.56), and we also added “Evolution” representing our ceaseless efforts to evolve under any changes to the environment (p.63). Monozukuri is about “People-building” Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 9
  • 12. Last but not least, I have something happy to share. The other day, a customer commented, “Money Forward is a company full of trust.” Trust is the biggest and most important asset for any company. Trust is not born from my actions alone but through the interactions of each and every member with our customers. Although there is still plenty of room for improvement, I am elated and humbled to have even one customer feel this way. It may seem strange coming from me but I love this company. Our colleagues are earnest, positive, personable, and eager to contribute to society. I believe that a group of people united under the simple precepts of trust, such as “Never lie” and “Keep promises” are what constitute the foundations of trust of a company. Because we live in an age of uncertainty, solving the money issues of as many individuals and companies as possible, thereby resolving as many social issues as possible, is our mission and our greatest contribution to society. Driven by our Mission of “Money Forward. Move your life forward,” we remain unchanged in our commitment to build up our precious asset of trust and unite our employees to take on the challenge of what is to come. Please continue to provide us with your support and guidance. Moving the entire Group forward by building on our precious asset of trust Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 10
  • 14. Move users forward by empathizing with the money worries of each individual December 2012- Move financial experiences forward through co-creation with partners November 2015- May 2012 “Money Forward. Move your life forward.” Money Forward is established. 5 4 3 2 1 Bolster the back office and move business and workers forward November 2013- Since the early days of the company, we have been making unique policy proposals. Today, the scope of our proposals encompasses a broad range of policies including child-rearing measures, as well as financial measures. While it is not easy to change society, by involving partners who are empathetic to our cause, we hope to bring about a better society. Related pages Society Forward...p.20 Money Forward Cloud was born from user input saying they wanted to use Money Forward ME to file their tax returns. Today we offer back-office SaaS to companies at varying stages of development and more than 300,000 businesses use this service. We support businesses as they take on new challenges by building a more powerful back office. Related pages Money Forward Cloud User Interview…p.16 Business Domain…p.36 Money Forward ME, a service for visualizing personal finances, was launched. Now there are more than 15.3 million users in total. We hope to open up a future where each user can address money in his or her own way with a positive frame of mind and unleash boundless opportunities. Related pages Money Forward ME User Interview…p.18 Home Domain…p.40 We launched the Money Forward X Business based on the relationship of trust forged with our partners since connecting Money Forward ME and Money Forward Cloud. Today, we are committed to bridging the digital divide along with 36 regional financial institutions. We aim to continue creating next-generation financial experiences with our partners. Related pages X Domain…p.42 Money Forward was founded on the single wish of building a society where everyone can believe “tomorrow will be better than today,” a society where anyone can stand up to any challenge by reducing money worries. We have been blessed with many outstanding colleagues and after repeated challenges and mistakes we have been able to enter our 13th year. We will continue our progress to fulfill this wish, which has remained unchanged since our inception. Related pages Mission Vision Values Culture…p.2 Value Creation Model…p.4 CEO Message…p.6 4 3 2 1 5 Moving forward on a road less traveled toward the future we envision M o n ey F o r w a r d h a s g r a d u a l l y p ave d t h e w ay by b u i l d i n g o n t h e t r u s t o f o u r stakeholders and standing up to the challenge of doing things that nobody has done before. The Money Forward Group will continue to make a concerted effort to take on new challenges for a better future for our users and for society. Move society forward through policy proposals July 2015- Our Footprints and the Future of Money Forward
  • 15. Money Forward goes public to take on more challenges September 2017- Move more users forward through globalization Move forward with allies who envision the same future November 2017- Move finances forward that support business growth June 2017- 8 7 9 6 10 Move toward a future free from money worries We are taking on the challenge of globalization to achieve our Mission and Vision and to move the lives of more users forward. To gather outstanding talent from around the world, we have established global offices and are actively hiring non-Japanese members. Furthermore, we are continuing our challenge of globalizing our current business. Related pages Talent Forward…p.23 Global Strategy…p.48 Money Forward Vietnam…p.59 SPOTLIGHT Non-Japanese Members…p.88 Starting with the group join (M&A) of Klavis, Inc., which provided STREAMED, an automated journal entry service, we have been proceeding with M&As of companies that can share our Mission and Vision. Seven such excellent companies have joined the Group. Together we will take on new challenges and work toward growth for the future endeavors that we share. Related pages CFO Message…p.31 With gratitude to our long-time supporters, we were listed on TSE Mothers and embarked on a new chapter of the company. Since our listing, our market cap has increased more than eightfold and our sales have grown more than tenfold. We will continue to move forward and meet the expectations of our investors and shareholders. * In June 2021, our listing was changed to the TSE First Section. In April 2022, our listing was changed to the TSE Prime Market, in conjunction with the changes to the market classifications. Related pages CFO Message…p.29 Financial Highlights…p.34 A future free from money worries and anxiety, where everyone can move their lives forward. This is a future with boundless possibilities that we want to bring to life through our services. To make this a reality, we will continue to pave the way by standing up to the challenge of doing things that nobody has done before and building trust. Related pages CEO Message…p.6 Money Forward Lab…p.60 We launched our finance business to improve corporate cash flows and support business growth. We have expanded our Business domain to include Biz Forward, a joint venture with Mitsubishi UFJ Financial Group and also launched the venture capital fund, HIRAC FUND. We will continue our relentless pursuit of a future where companies can develop their businesses with peace of mind. Related pages Finance Domain…p.44 9 8 7 6 10
  • 16. Sustainability 01 Three Priority Themes User Forward ーMoney Forward Cloud User Interview ーMoney Forward ME User Interview Society Forward Talent Forward ーTalent Forward Strategy ーDEI (Diversity, Equity & Inclusion) 15 16 18 20 23 27
  • 17. Moving Usersʼ Lives Forward We aim to capitalize on the powers of technology and design to deliver services to various users to solve their money issues. Materiality Three Priority Themes Since our inception, our mission has been “Money Forward. Move your life forward.” and we aspire to deliver on our purpose of solving peopleʼs money issues and worries. “Money,” which is the Companyʼs namesake, can be a difficult subject to tackle. Money is merely a tool for well-being. That being said, these uncertain times are making us see “Money” in a negative light, and in many instances, as increasingly onerous̶making us avert our eyes. Chalking it up to opaque “Money” prospects, some people have been forced to put off marriage and pregnancy, while others have withdrawn from businesses, and many other missed opportunities loom in our society. In our opinion, a “sustainable society” is one in which everyone including individuals and entities can challenge themselves to do anything, untethered by such “Money” worries. To make this a reality and sustainably improve our corporate value, we have positioned the three areas of “User,” “Society,” and “Talent” as our corporate materiality themes. Our goal is to develop and provide services that solve our usersʼ “Money” issues and deliver them to as many people as possible through co-creation with partners while building a better society through policy proposals and other activities. We also believe that an organization that attracts superior and global talent and allows them to mutually uplift one another is essential for achieving such a society. To this end, a Head of Sustainability was appointed in February 2021, and a Sustainability Committee was established the following year. The Committee, chaired by the CEO, comprises members appointed by the Board of Directors and ensures the validity and effectiveness of sustainability measures. The Group currently offers a wide range of services but the road to a “sustainable society” is a seemingly endless path wrought with challenges. At Money Forward, each of us will continue to engage with money issues and work together to bring us closer to our envisioned society. * The use of data from MSCI ESG Research LLC or its affiliates (ʻMSCIʼ) by Money Forward, Inc., as well as the use of MSCIʼs logos, trademarks, service marks, or index names, does not imply sponsorship, endorsement, approval, or promotion of Money Forward, Inc. by MSCI. MSCIʼs services and data are the property of MSCI or its information providers, provided ʻas is,ʼ and without warranties. The name and logo of MSCI are trademarks or service marks of MSCI. User Forward Talent Forward Moving Employee Potential Forward We aim to create an environment that enables our superior and diverse talent gathered from around the world to unleash the capabilities and achieve continuous growth. Society Forward Moving Society Forward We aim to build a better society by making policy proposals and co-creating with diverse partners. Third-party Assessments Money Forward has been selected as a constituent in four ESG indices adopted by Japanʼs Government Pension Investment Fund (GPIF), as reference for making its investments. In June 2023, Money Forward was upgraded by one level from the previous year and awarded an “AA” in the MSCI ESG Rating*. We far exceed industry averages, particularly in “S” (human capital) and “G” (governance) items, through the implementation of relevant systems and measures and improved disclosure of ESG data. Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 15
  • 18. User Moving Usersʼ Lives Forward User Interview 01 Forward Azumino, a town built around Japanʼs leading spring water. We are elevating the value of water by making our region known around the world. User of Money Forward Cloud Mr. Yasunori Arai Representative Director Azumino Mineral Water Co., Ltd. Implemented services Money Forward Cloud Accounting Money Forward Cloud Invoice Issuing Money Forward Cloud Attendance Money Forward Cloud Payroll Money Forward Cloud Tax Adjustment Talent Forward Society Forward User Forward Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 16
  • 19. ▶“SaaS applications for back-office operations: paying customers,” one of the “Sustainability Indicators” to measure our progress on “User Forward,” increased by approx. 60,000 from last year to top 300,000. Going forward we hope to help as many clients as possible, such as Azumino Mineral Water Co., Ltd. solve their back-office issues and support them in their new endeavors (p.5 Sustainability Indicators) . Accounting personell managed payments and invoices using analog means. To access past financial statements on the road, they had to be scanned and attached to emails. Attendance was managed based on time cards, resulting in numerous application omissions and delays. The reduced burden of back-office operations allows us to focus on our core business. Through easier access to financial statements, whenever and wherever, we sped up business judgment/decision-making. With an improved overall focus of the employees regarding attendance management, there were fewer application omissions and delays. Implementation of Money Forward Cloud Before implementation After implementation Since our founding in 2012, we have grown through our core business of manufacturing and selling mineral water. Our dedicated 2-liter bottle production lines at our main plant in Azumino City, Nagano Prefecture, produce 180,000 bottles per day, the majority of which are shipped to major convenience stores and drugstores and marketed as a proprietary brand under the name, Azumino no tennen-sui (Natural water from Azumino). We are proud and committed to our business of spreading the name of Azumino nationwide as one of Japanʼs leading “towns built around water,” blessed with the bounties of mountains, rivers, and land. When extracting and marketing water, the focus tends to be on “price and volume.” However, a low margin high volume mindset can translate into immeasurable environmental burdens and poor working conditions for the employees. Above all, it can be detrimental to elevating the brand value of the land producing such quality water. This is why we have been stepping up to the challenge of “elevating the value of water” through various initiatives. A Japanese sake, mine, launched in 2022, is one of them. We have joined forces with a long-standing Kyoto sake brewer, empathetic to our cause, to elevate and expand the “value of water.” Back-office operations have also increased in conjunction with company growth and business expansion. This is why Money Forward Cloud efficiently takes care of the work that does not require our direct input to let us focus on our core business as well as creating an environment to embark on new endeavors to “elevate the value of water.” The implementation of Money Forward Cloud has not only translated into a smaller burden on our accounting staff but also improved the overall focus of the employees due to fewer application omissions for paid leave and attendance. I am personally grateful because it gives me timely access to data for decision-making, wherever I am in the world, during my many business trips. Before, we only prepared paper financial statements which made it difficult to access them on the road. Money Forward Cloud for me combines style and function with its user-friendly and attractive operation screens. I will continue my efforts to speed up management decision-making and create an environment conducive to the innovative work of our employees. I will also deliver the appeal of Azumino and the value of water to people around the world and aspire to become a harbinger of hope for the Azumino community. Talent Forward Society Forward User Forward Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 17
  • 20. Freed from a vague sense of anxiety, I can now spend money on what I want with a positive frame of mind. User Interview 02 User of Money Forward ME Mr. Yusuke Talent Forward Society Forward User Forward Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 18
  • 21. ▶“Money Forward Me yearly improvement in personal finance,” one of the “Sustainability Indicators” to measure our progress on “User Forward,” increased from 281,000 yen last year to 295,000 yen. We will go forward with product improvements so that we can help users, such as Mr. Yusuke, resolve their money anxieties and support them in pursuing what they want (p.5 Sustainability Indicators) . I started using Money Forward ME when I got married in 2018. My mantra until then had been, “What I earn by day, I spend by night” and I never kept track of how much I spent or what I spent it on. After trying out a number of apps, my wife and I decided Money Forward ME was the easiest to use. The app gives you an overview of all money movement, so you can figure out your income and expenses, as well as valuation losses/gains on your assets managed. The automatic integration of credit card statements and bonus points, as well as investment trusts and online shopping, is an especially useful feature. The biggest transformation for me since starting Money Forward ME was becoming more flexible in the way I spent my money. I no longer have to give up everything to save money. Instead, in order to spend money on what I want or what I value with a positive frame of mind, I avoid things that are not important. As a couple, we love to go out and eat great food. So, being mindful of curbing other unnecessary expenses has made dealing with money less stress-inducing. I believe that the more you spend on what you love, the happier your life will be. Therefore, this transformation has been huge. As a result, we have been able to step up from merely managing our household finances to entering our asset management phase. We no longer “just spend whatever we have.” Instead, by only allowing ourselves constructive expenditures, we can plan for the future from a long-term perspective. Freed from a vague sense of anxiety, we have reached a state of mind where we feel at ease about making our money grow. From now on, I hope to spend money on my sonʼs activities. He likes banging things together and making a lot of noise. So, I hope we can find an activity for him that maximizes his five senses. Once he finds a hobby, we hope we will be ready to let him pursue it wholeheartedly by having budgeted the necessary funds. This is why I intend to continue with Money Forward ME and deal with money with a positive frame of mind. Before use After use Use of Money Forward ME Talent Forward Society Forward User Forward My mantra had always been, “What I earn by day, I spend by night” and I never knew where and how much of my money had gone. Having been a freewheeling spender, I always found myself gripped by a vague sense of anxiety. Thinking about our future after getting married only amplified this anxiety. Getting an overview of all our money movement has allowed me to be more flexible in the way I spend my money on the things that I want. Also, planning for the future from a long-term perspective has allowed us to step up from managing our household finances and enter our asset management phase with peace of mind. Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 19
  • 22. Drive society forward with unique Money Forward policy proposals We have identified “Society Forward” as one of our materiality themes and aspire to not only resolve the issues facing our users through the delivery of services but also move society forward as a whole through policy proposals, co-creation with various partners, and practicing environmentally-conscious management. Since our inception, we have been making policy proposals to propel society forward. This is because money issues cannot be resolved by services alone and require transformative innovations of social institutions and practices. In some cases, these institutions have not caught up with technological advances, and in such cases, it is necessary to indicate a plausible image of the envisioned institution while taking into account the status quo. In our policy proposals, also, we have brought to bear our unique perspective that values “User Focus” as well as our unique approach as a venture firm. Our contact Doing what we can, step by step, together with our partners points with users are broad and far-reaching. Among the inquiries from our users, some are intrinsically institutional issues that defy service-based resolutions. For such users, we speak on their behalf and voice their concerns to society. Being a venture firm, the reach of our activities may not be enough to engage society into bringing about a transformation. This is why we have tapped into the media who are attuned to social change to assist us. Our outreach has been instrumental in gradually changing policy-makers and social awareness to bring about institutional change. As a result, our services are being slowly but surely embedded into the social infrastructure, with the added social responsibility entailed as an operator of the foundations for the livelihood of people and businesses. We will then responsibly heed the increasing number of requests from users and society to continuously improve our services. And when another institutional issue arises, we will once again commence our outreach for its resolution. Transforming society, step by step, through such a cycle is the very essence of our approach. Society Forward Moving Society Forward Talent Forward Society Forward User Forward Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 20
  • 23. The scope of our policy proposals range from child-rearing to digital currencies Recently, we have been focusing on research and proposal activities regarding policy agenda that are integrally connected to our business domain of solving money issues such as the operation of self-regulatory organizations required to set up new user-oriented financial services (electronic payment services and the financial service intermediary business) in our society or how financial infrastructure (Central Bank Digital Currency (CBDC) and new settlement infrastructure) should function in the digital age. And leveraging our wide point of contacts with users, our Group has also been focusing on making public services more accessible. In terms of individuals, we joined the Japanese Association for Promotion of Childʼs DX in 2023 and contributed to initiatives that make child-rearing measures more readily available. We also made policy proposals to bring clarity to public pensions. For businesses, we made proposals to make municipal procedures fully handled on the cloud in the future. In this way, we have been making policy proposals across areas closely related to our business and those perceived to be shared social challenges, be it in the financial or non-financial domain. We held media workshops in conjunction with the FSA certification in 2023 of the Japan Association for Financial APIs, a self-regulatory group to spread and raise awareness on electronic payment services. Talent Forward Society Forward User Forward Money Forward, a registered electronic payment services provider under the Banking Act, obtains data such as bank account deposits/withdrawals linked to Money Forward ME and Money Forward Cloud and visualizes data to enable users to grasp the state of their assets and simplify accounting tasks. Our current focus is the visualization of data from the linked financial institutions but want to add more integrations to our service and make fund transfers including remittances possible within our services. By doing so we want to provide new sources of income for our partnering financial institutions as well as enable a future filled with convenient service offerings to our users. With all that in mind we will continue to make policy proposals. Pick Up! Expanding the electronic payment services ecosystem Financial domain The Group ʼ s business domains Shared social challenges Non-financial domain Expanding the financial service intermediary business ecosystem Financial infrastructure (settlement system/CBDC) Expanding the electronic payment services ecosystem Promoting online factoring Promoting financial education Finances for a super-aging society Digital tax payments (Invoice system, electronic bookkeeping, etc.) Promoting data portability Promoting data utilization and EBPM DX of child-rearing policies Promoting start-ups (entrepreneurship, funding) Making the fintech industry more secure Promoting the DX of SMEs Government cloud utilization Clarity to public pension Pick Up! * CBDC (Central Bank Digital Currency) is a digital currency issued by the central bank * EBPM (Evidence-based Policy Making) refers to initiatives in forming policies based on reasonable grounds upon clarifying the policy objectives. Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 21
  • 24. We announced the alliance for promoting DX in urban planning at a home game of Hokkaido Consadole Sapporo. We are pushing forward with the DX of companies and the development of digital talent in Sapporo City. Pushing forward with financial literacy classes at school We hope to be instrumental in raising financial literacy in schools and at home. Financial education at schools is an area where concerted efforts by both the public and private sectors are required, given that educators are not familiar with such material and have little time to prepare. This is why we must provide the right tools such as teaching materials for educators, as well as go to the schools to teach the classes. Raising financial literacy has become a major agenda for the government, as evidenced by the newly established financial and economic education promotion organization, and we intend to push forward with various initiatives to raise the literacy of as many people as possible and free them from money issues. Letʼs make it! A future created through co-creation with diverse partners We cherish the concept of “Letʼs make it (Co-creating and achieving).” It is not easy to change society. Such change can only come about by involving others and co-creating with partners who are empathetic to our cause. We also believe that to deliver the power of technology and design to all, co-creation with diverse partners who are leaning in closer to the users in the resolution of their issues is essential. This is the reason why co-creation with partners features prominently in the “Sustainability Indicators” to measure our progress on “Society Forward.” The specific indicators are the numbers of certified members of professional offices and chambers of commerce that became our partners to support nationwide SMEs since the launch of Money Forward Cloud. Additionally, to address the social problems posed by the digital divide, we have set an indicator of the number of digital financial services provided in collaboration with our financial partners. All indicators show strong performance. We have been able to deliver our services to more users through partnerships with diverse partners, as indicated by the more than 300,000 business users of Money Forward Cloud. Going forward we will continue to closely monitor these sustainability indicators that focus on co-creation with partners but we will also consider the setting and disclosure of indicators that measure progress in sustainability from a medium to long-term perspective. We also partner with three J.League Club Teams. Every year, we hold the sponsored match “Money Forward Day,” with Yokohama F.Marinos, as a co-creation event to support the club with the fans and supporters. As an “official DX partner” of Avispa Fukuoka, we are promoting the DX of the Kyushu region. We also signed a trilateral agreement with Hokkaido Consadole Sapporo and the city of Sapporo as part of an alliance for promoting DX in urban planning. In this way, we have been promoting DX with sports serving as the hub. We have also implemented Money Forward Cloud in 21 J.League club teams as part of efforts to contribute to society by supporting the sports community. Practicing Environmentally Conscious Management The protection of the global environment has become an urgent matter of concern. We are also addressing this issue through company-wide initiatives. Internally, we identify areas that need to be reviewed regarding the office, internal tools, and employeesʼ workstyle, and implement environmentally friendly measures. Additionally, starting this year, we have purchased non-fossil certificates and commenced initiatives to achieve virtually zero CO2 emissions at our offices in Japan. Externally, we not only promote reducing paper usage and improving operational efficiency through our service offerings but also support the activities of individuals and companies with a low carbon footprint. In the future, we will consider offering functions on our services to support users in reducing their environmental impact. * For the definition and calculation method, please refer to p.83. Money Forward Cloud: users associated with certified members 32,364 Money Forward Cloud: chambers of commerce in alliance 137 Money Forward X: services provided 180 25,258 FY2022 FY2023 123 126 Talent Forward Society Forward User Forward Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 22
  • 25. Moving Employee Potential Forward In July 2023, I was appointed Group Executive Officer and CHO (Chief Human Officer), and Head of DEI (Diversity, Equity & Inclusion). Since joining the firm in 2016, I first prepared for our IPO on TSE Mothers at the Corporate Planning Division. After the IPO, as the Corporate Planning Division Manager and Head of IR, I engaged in corporate financing and the promotion of dialogues with investors. In 2019, I became the first female manager to take a parental leave. Upon returning to work, I launched a DEI Project to ensure that members who came after me would be able to mark lifeʼs milestones with peace of mind and to send a message that it is possible to balance management duties and family life, and even enjoy it. I also led the sustainability project and pushed forward with the concept of “Talent Forward.” In 2021, when Mr. Tsuji, CEO, asked me to update the human resources framework to align with the Companyʼs strategies and the challenges it faced, I decided to switch to HR. Building on the direction that management wants to take and the current challenges facing the organization, I have been pushing forward with various new measures such as revising the performance evaluation system, HR surveys, and developing training programs to recalibrate both the “motivating” and “supportive” aspects of the workplace. Going forward I aspire to build an even more powerful organization to bring our Mission and Vision to life. Talent Forward Society Forward User Forward Developing Money Forwardʼs unique, powerful, yet welcoming organization Talent Forward Executives (p.76) Group Executive Officer CHO (Chief Human Officer) Head of DEI (Diversity, Equity & Inclusion) Chiaki Ishihara Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 23
  • 26. 1. Foster a safe work environment and corporate culture We share a common set of values and aspire to the same worldview, reflected in our Mission Vision Values Culture (MVVC), and implement measures to deepen the understanding of the MVVC. We are working to create a working environment and culture that is supportive of each one of our increasingly diverse members. (p.64 Initiatives for Initiatives to Instill Culture) 2. Recruit talented and diverse members who align with our MVVC We believe that a team that aligns with our MVVC with diverse perspectives and experiences is essential to creating new ideas and value, and we are working to create an organization that attracts top talent not only from Japan but from around the world. 3. Create a system that maximizes individual potential We are building systems to encourage members to continuously develop and take on more challenges by continually updating our HR system and conducting surveys to provide members with timely support. (p.25) 4. Foster autonomous personal development Each member takes ownership of their development and we encourage our members to grow autonomously. We are promoting not only experience on the job but also training programs and effective feedback. (p.25) 5. Connect individual development to organizational development We are working to link the continuous growth and challenges of each member with the growth of corporate value, through such means as a goal-setting system that links the company growth with the growth targeted by the individual. In December 2023, we announced the “Talent Forward Strategy 2024,” outlining the Groupʼs approach to human capital and policies going forward. We have reiterated the Groupʼs HR philosophy in this “Talent Forward Strategy.” We will continue to bolster these five key tenets to bring to life our management strategies and the Mission and Vision that lie beyond. At Money Forward, our employeesʼ growth is our growth FY2022 FY2023 Talent Forward Connect individual development to organizational development Foster autonomous personal development Create a system that maximizes individual potential Recruit talented and diverse members who align with our MVVC Foster a safe work environment and corporate culture 5 4 3 2 1 Achieve our business strategy Realize our Mission and Vision Talent Forward by the Numbers Ratio of women among managers (overall/business positions) Cumulative number of participants in Leadership Forward Program Cumulative number of participants in manager basic training Childcare leave acquisition rate (women/men) Employee engagement (MF Group Survey) 20.2%/26.0% 126 419 100.0%/50.0% 20.4%/24.1% 179 591 92.9%/87.1% Refer to p.87 Our “Talent Forward Strategy” Talent Forward Society Forward User Forward For the Groupʼs approach to human capital and details of our policy in the future, please see “Talent Forward Strategy 2024.” More Information ! Talent Forward Strategy 2024 * For the definition and calculation method, please refer to p.83. Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 24
  • 27. The Group believes that building a motivating and supportive organization for our members will lead to their aspirations of “creating more value through growth” and “achieving the Mission and Vision,” which, in turn, will encourage organizational and personal development. This is why we carry out an anonymous survey called the “MF Group Survey” every six months to visualize the state of the organization. Based on the results of this survey, senior management and managers, then, drive initiatives forward to make the organization better. We also conduct a non-anonymous survey called “MF Selfie Map” each month. This survey focuses on such critical metrics as “whether the work is motivating” and “whether members have a perceived sense of growth,” and members exhibiting changes arousing concern are cared for by us, HR (People Forward Department and the HRBP of each company) in concert with their managers. Previously our development support mainly consisted of making bold promotions to offer candidates with opportunities to gain experiences in challenging situations. However, lately, we have been bolstering our training programs including extensive leadership training. In the “Leadership Forward Program,” which began in FY2021 to nurture management leaders, executives including the CEO serve as lecturers and provide practical knowledge including what they consider to be the most important leadership qualities at a 2-day leadership retreat. From FY2024, we launched the “Leadership Forward Program Basics” for new and aspiring managers, where we provide programs to enhance their fundamental leadership capabilities, including leadership, organizational management, and critical thinking. We have several new training programs to help members equip themselves with a management perspective, such as a “Book club session” for higher-layer managers where books selected by executives are discussed. What distinguishes our training programs from others is that the executives themselves are involved in every step from the planning to the execution. These programs allow the participants to communicate with the executives, boosting their engagement and commitment. These training programs emphasize the individualʼs proactive aspiration “to grow” and participation is strictly voluntary. There were more applicants than places in the “Leadership Forward Program,” an indication of the strong commitment toward self-improvement of our Group members. Create a system that maximizes individual potential Foster autonomous personal development Growth of the organization leads to the growth of the individual and the growth of the individual allows us to achieve our Mission and Vision To achieve our Mission and Vision, “personal development” is indispensable. The key tenets of “Create a system that maximizes individual potential” and “Foster autonomous personal development” are also maintained in the five categories of the Groupʼs “Talent Forward Strategy” (p.24). Accordingly, we have been constantly updating our measures to encourage personal development through building the organization, as described below. We will continue to update the required systems, promote our “Talent Forward Strategy,” and aspire to bring our Mission and Vision to life. FY2022 ・ MF Selfie Map (non-anonymous survey ・ monthly) FY2016・ MF Group Survey (anonymous survey ・ semi-annually) Building an organization FY2024 ・ Leadership Forward Program Basics、 Book club session for our higher-layer managers FY2022 - FY2023・ Goal-setting training, 1-on-1 training, Career training FY2021・ Leadership Forward Program FY2017・ Challenge System (internal mobility system) Personal development Leadership Forward Program Results for FY2023 Satisfaction level Recommended level 179(3 times in total) 4.7 (on a 5-point scale) 9.0 (on a 10-point scale) Cumulative number of participants Talent Forward Society Forward User Forward * For the definition of the cumulative number of participants, please refer to p.83. Deputy General Manager People Forward Department Division Manager Talent Growth Division Fuki Takeuchi joined Money Forward in 2021, after serving at Nissin Foods Holdings Co., Ltd. She has been at her current post since June 2023. Fuki Takeuchi Iʼve gotten so much stronger now that Iʼve resumed strength training, which I stopped during pregnancy. Forward Voice Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 25
  • 28. An organization that encourages individual development and collectively maximizes our value Building an environment where members enjoy working and are able to grow through work is essential for continuously delivering more value to our users. The “MF Group Survey” is like a physical checkup that regularly checks the soundness of the organization. When analyzing results of the surveys, we tend to focus on the points that are relatively low or have fallen. However, just as in a physical exam where fundamental improvement in oneʼs health is more important than minimal weight fluctuations, the key point of this survey is whether the organization/work environment is leading to a perceived sense of growth in its members. This is why we are prioritizing and implementing the necessary measures. A member who had become settled into his work recently admitted not being able to experience growth as much as before. For this member, we provided work experience at an accounting firm. This experience, by allowing him to know the user better, provided him with the awareness that there was still room for us to deliver exceptional value and that there were opportunities for him to grow. Meanwhile, the “MF Selfie Map” is similar to a medical questionnaire that picks up on any changes to the individual member. Even if the organization is in perfect health, individuals change day by day. When an alert is flagged, we carry out a “Cross 1 on 1,” in which not only the individualʼs direct-report manager but also those who are diagonally above them provide counsel and address the individual from a multi-lateral perspective. Our organization is a gathering of members who joined because they wanted to do good for society. There is a limit to what one person can do but there is power in numbers and together we can do great things. That is why I am committed to amplifying the value that our diverse members can offer together. Deputy General Manager SMB Business Promotion Department Division Manager Partner Development Division Money Forward Business Company Yoshihiko Okamoto joined Money Forward in February 2019. He has been in his current post since March 2023, after serving as the Head of the Hiroshima Branch Office, and other positions. He heads a 30-member division engaged in new business development with a professional service firm. Yoshihiko Okamoto I have started volunteering as a career development teacher for students! Forward Voice Division Manager Design Office BX Design Division Money Forward Business Company Ayumi Obara joined Money Forward as a designer in January 2022. She has been in her current post since June 2023. She heads a department that formulates communication design and branding across the company. Ayumi Obara I have been doing punishing stretches and can now touch the floor in a forward fold! Forward Voice Nurturing my leadership in a whirlpool of excitement As my role changed from leader to division manager and I became accountable to more stakeholders, I sometimes felt that my perspective lacked depth and at times I was gripped by inexplicable anxiety. This all changed when I participated in the hands-on learning workshops and sessions of the “Leadership Forward Program” and took part in the exchanges with members of management and colleagues in similar situations to myself. I learned that everyone was going through similar problems and anxieties but continuing to step up to the challenge despite these obstacles, and then, what I had previously felt as anxiety became a sense of excitement. Group discussions served as eye-openers to gain deeper understanding about the perspectives of other job roles. At the same time, I also learned what was expected of me as a designer. In other words, to deep dive into the matter, identify the essential themes, and visualize value. These were my very strengths as a designer. Before the “Leadership Forward Program,” I thought that in order to deliver as a leader I had to have the same mindset as a business person, and out of desperation and anxiety, I focused on unlearning my career as a designer. However, after the program, I was able to maintain my strengths as a designer, engage in dialogues as a hub to connect designers and business side members, and generate communication that is generous and tolerant. If we can all share and materialize this mindset, maximum performance will follow. This is why I rarely determine a certain course of action in my division and instruct the members to follow it. I merely provide a setting and points of view and let everyone discuss and vent their ideas. I try to create a state where each person can proactively demonstrate his or her leadership. I hope to continue involving my colleagues in this whirlpool of excitement and you will find me enjoying this whirlpool more than anyone. Talent Forward Society Forward User Forward Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 26
  • 29. (1) Improving gender equality at the decision-making level By design, we are a company that caters to a wide range of users, which makes it all the more important that we adopt a diverse perspective. This is why as the first step we are focusing on increasing the number of decision-makers who are women, the greatest minority group. As a metric for motivation, a question in the “MF Group Survey” asks, “If you were offered a management position or work that entailed greater responsibility than you have now, would you take it?” To this question, we are aiming for a reply of 4.0 or above on a scale of 1 to 5 for both men and women by November 2025. In August 2022, a significant gender gap emerged with an average score of 4.2 for men and 3.8 for women. The gap began to close in October 2023 with an average score of 4.2 for men and 3.9 for women. Through initiatives such as the Parental Leave Guidebook, we will continue to disseminate relevant information and create a culture where employees can step up to the challenge with peace of mind even while marking lifeʼs milestones. We are also closely monitoring the ratio of female managers as a “Talent Forward” metric but because of the reasons explained below, we are following the gender gap* in each grade as an actual metric in measuring gender equality at the decision-making level. We aim to lower the average gender gap of 0.6 points for all grades as of February 2023 to 0.2 points by November 2025. In the meantime, we will check that hiring and evaluations are being handled equitably and correct issues, if any. Our Two Priorities in DEI DEI (Diversity, Equity & Inclusion) is a crucial perspective that encompasses our “Talent Forward Strategy” (p.24). A diverse organization is essential for a company to continuously generate innovation (Talent Forward Strategy 2). However, diversity alone will not be enough. For an organization to run smoothly there must be mutual acceptance between members with diverse experiences and values and they must also be on the same page (inclusion) (Talent Forward Strategy 1 and 4). For such diverse talent to unleash their full potential, equal access to new challenges and equitable evaluations are also essential (Talent Forward Strategy 3 and 5). As initiatives to deepen our understanding of DEI, we have conducted unconscious bias and cross-cultural communication training, in addition to publishing a DEI statement for our employees and other stakeholders. DEI is an extremely broad concept and there are many aspects of DEI that we need to address. Nevertheless, bearing in mind our current situation and our general direction, we have identified (1) Improving gender equality at the decision-making level and (2) Diversifying our engineering organization, as our top priorities, and we will drive forward with initiatives that focus on ensuring equity and inclusion. ・ At Money Forward, “Professional” is one of the qualities that define our culture and there is a climate that allows members to unleash their leadership regardless of their position. ・ Grades are separately defined between “Management” and “Expert” according to the individualʼs aptitude and orientation. As experts are also involved in the companyʼs decision-making, we focus more on job grade distribution over the ratio of managers when measuring diversity. (2) Diversifying our engineering organization We believe that successfully onboarding engineers and bolstering our development framework are keys to continuously developing quality products, and from FY2021, we have been hiring engineers regardless of their Japanese language skills. Currently, non-Japanese members account for 42.1% of our engineering organization (p.88). To make English the official language of the engineering organization in FY2024, we began offering English language training according to the individualʼs proficiency level in FY2022. The ratio of engineers with TOEIC scores of 700 or higher, which was 41% in January 2023 was raised to 72% by November 2023, and we are making good progress to reach our ultimate goal of 100% by November 2024. Going forward, we will upgrade the level of training and upgrade the support system for even greater English proficiency. We are also thinking of setting up metrics to measure the grade gap between non-Japanese and Japanese members and ultimately bridge the gap between the two. DEI is not going to be achieved overnight but will require continuous and consistent efforts. Although different challenges will emerge as the organization grows and the business climate changes, we will recalibrate as necessary and continue with our initiatives to make Money Forward a stronger and more welcoming organization. * Refers to the average grade of all full-time regular employees by gender (including employees seconded by the Company). Grades 1 through 7 are defined based on skills and personal contribution (However, excluding Company Executive Officers, Inclusive Course Employees [employees with disabilities], and employees whose grade has not been determined due to the probationary period, etc.). Talent Forward Society Forward User Forward For details of our DEI initiatives, please see the Companyʼs website More Information ! DEI Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 27
  • 30. Our Business 02 CFO Message Financial Highlights Business Highlights Business Domain Home Domain X Domain Finance Domain SaaS Marketing Domain Global Strategy SPOTLIGHT Account Aggregation 29 34 35 36 40 42 44 46 48 49
  • 31. Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data FY2023 Financial Results In FY2023, thanks to high revenue growth in each domain, especially the Business domain (p.36), consolidated net sales rose 41% YoY to 30,381 million yen, overshooting the upper forecast limit, which had been upwardly revised during the period, as well as achieving the initial forecast for the seventh consecutive year since IPO. In terms of P&L, strengthening our disciplined investment approach and improving profitability resulted in a consolidated EBITDA of minus 2,260 million yen and an EBITDA margin of minus 7%, representing a 21-point improvement. As for financing, we procured 31,572 million yen in an overseas public offering of new shares in August 2021 and also raised 12,000 million yen through the issue of convertible bonds (bonds with stock acquisition rights) in August 2023. With cash and deposits standing at 38,856 million yen at FY2023-end, we have secured the liquidity necessary to scale. 02 Our Business CFO Message Executives (p.74) Director Group Executive Officer and CFO Naoya Kanesaka Turning profitable this year by balancing high growth and improved profitability, eventually shooting for net sales of 100 billion yen and EBITDA of 30 billion yen +41% YoY (YoY) (¥ mn) FY11/18 FY11/19 FY11/20 FY11/21 FY11/22 FY11/23 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 ■ Finance ■ X ■ Home ■ SaaS Marketing ■ Business 63 1,242 2,681 4,595 597 339 1,634 4,166 7,157 1,005 1,422 743 1,270 6,048 8,589 1,970 2,414 1,882 769 12,704 18,712 3,532 3,989 2,525 +52% +27% +28% +47% 1,586 +36% 2,767 3,146 1,663 1,168 11,319 15,633 21,477 30,381 1,845 * The aggregate of net sales of each domain do not necessarily correspond to consolidated net sales as net sales of “Other” are omitted from the graph. 29
  • 32. Four Growth Strategies The Group is pushing forward its four growth strategies. Four Growth Strategies 1 Enhance value of back-office SaaS platform with go-to-market strategy based on disciplined investment Maximize synergies between domains and improve company-wide productivity 4 Continue disciplined M&A (Group join) and optimize group capital strategy 2 3 Create new user value through integrating SaaS and Fintech ❶Enhance value of back-office SaaS platform with go-to-market strategy based on disciplined investment We will further concentrate our management resources in the Business domain where the ARR growth has been the steepest, while in the other realms, we will sustain growth while prioritizing improving profitability. The main business model of the Business domain is the SaaS business model, which records revenue as the service is used. Compared to the model that records all revenue upfront at the time of implementation, the SaaS model takes time to monetize, but it has a lower churn rate (the monthly average churn rate of Money Forward Cloud for corporate customers was 0.8% in FY2023) and a higher gross margin (86%*1 for back-office SaaS in FY2023), fueling expectations for extremely high profitability in the medium to long term. *1 Figure for the entire Business domain. Calculated based on definitions commonly used by global SaaS companies. The cost portion includes communication expenses and system subscription fees related to product development, server fees including for AWS, API connection fees, as well as personnel expenses related to customer support, service infrastructure, and operators of STREAMED. Personnel expenses for engineers and designers involved in product development are included in cost of sales in the Japanese accounting standards and the Companyʼs statement of income. ❷Maximize synergies between domains and improve company-wide productivity We are ramping up synergies between domains to improve Group-wide productivity. We will do so through reciprocal customer transfers, for example, by encouraging sole proprietor users of Money Forward ME to also use Money Forward Tax Return and sharing product developments and functional developments across the Group, for example, through the broad application of our core technology of account aggregation (p.49). ❸Create new user value through integrating SaaS and Fintech To make our Vision of “Becoming the financial platform for all” a reality, we will need to provide direct solutions to the money issues encountered by individuals and corporations, and to do that, it is critical that we strengthen our embedded finance proposition. Currently, in each domain, we have some of the largest customer bases in Japan, which as a platform has become a vanguard for integrating SaaS and Fintech. Going forward, we will embed transfer and payment functions in Money Forward Cloud and other cloud services, promote real-time credit and online factoring using accounting data, and accelerate partnerships with financial institutions (e.g. increase API connections) to provide unparalleled service offerings with added value. Through these efforts, we will maximize SaaS recurring revenue, while increasing transactional revenue by leveraging our SaaS customer base. Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 30
  • 33. * We hold minority stakes in Mekari, Bizzi and Mesh. * Susten Capital Management Inc. is an equity method affiliate ❷Expansion of TAM (Geographical Expansion) •Pursuing future opportunities through access to cloud back-office SaaS market in SEA and North America Business Area Strategy Track Records Business/Home SaaS Marketing ❸Expansion of TAM (Business Area Expansion) •Enter SaaS marketing business which has large market potential (September 2021) (August 2023) (November 2017) (October 2020) (December 2021) (February 2020) (July 2018) ❶Expansion of Product Line-up Upsell products to existing customers (accounting firms and corporates) for ARR expansion Expand range of best-in-class solutions to further enhance line-up to medium to large-sized/ pre-IPO companies and listed companies Expand financial services and enhance value proposition Business Business Home (June 2021) (December 2023) (May 2022) (Multiple follow-on investments since January 2018.) ❹Continue disciplined M&A (Group join) and optimize group capital strategy To punctuate our relationship as partners aspiring to the same Mission, we avoid using the term “acquisitions” but instead refer to M&As as “Group joins.” We actively engage in M&As (Group joins), minority investments, and business alliances to drive inorganic growth. Since listing on TSE Mothers in 2017, we have welcomed seven excellent companies to the Group. There are three focal areas to our M&A strategy. The first area comprises M&As centering on the Groupʼs biggest revenue driver, the Business domain, to expand our product lineup. M&As and investments to geographically expand the Total Addressable Market (TAM) in regions such as Southeast Asia and North America make up the second area. And thirdly, we engage in M&As to expand TAM by entering new business domains. Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 31
  • 34. Group Join We believe that “Talent and Culture” are the keys if we wish to continue growing together with the newly joined companies. This is why we focus not only on setting quantitative incentives but also on providing an environment where the newly joined company and individuals can seek opportunities for new growth through the Group. How deeply the Culture has been ingrained into all employees across the Group and not just management will dictate the success of the PMI. To this end, we engage in various activities that transcend company boundaries. Fortunately, as a result, companies that have joined the Group have accelerated their growth post-merger. November 2017 Klavis, Inc. Established in 2012 Provides STREAMED, which converts paper evidence such as receipts into digital accounting data, simply by scanning them. Customers are mainly accounting firms. Money Forward Cloud excels in automating journal entries from digital data while STREAMED excels in automating journal entries from paper sources, mutually complementing the value proposition to users. User acquisition has also greatly increased by capitalizing on Money Forwardʼs sales network. The cumulative number of users has topped 5,400 accounting firms owing to synergies in both the product and sales front. Company Overview Synergy Created by Joining the Group Klavis, Inc. Representative Director and CEO Kazuaki Kimijima Knowledge Labo, Inc. Established in 2012 Provides a cloud-based budget management software, Manageboard, which visualizes finances by collecting, analyzing, and projecting managerial data, as well as business administration consulting. We cross-sell Manageboard to professional service firms and medium-sized companies that use Money Forward Cloud. In our business administration consulting, we collaborate with Money Forward to support the DX of back-office operations and management accounting of growing companies. SMARTCAMP Co., Ltd. Established in 2014 Provides holistic support for sales and marketing of SaaS companies through the SaaS comparison site, BOXIL SaaS. SMARTCAMP makes up the SaaS Marketing domain, one of the five domains of the Group, and its sales account for more than 10% of the total sales of the Group. In conjunction with BizHint, Inc. becoming a wholly-owned subsidiary of SMARTCAMP in December 2023, we are expanding our marketing and sales support of SaaS companies. R&AC Co., Ltd. Established in 2004 Provides V-ONE Cloud and Victory-ONE/G5, cloud services for reconciliation of receipts and receivables management. On the sales front, we collaborate in serving mainly medium-sized and large companies, while on the product front, we are developing the collaboration of V-ONE Cloud and the receivable billing function of Money Forward Cloud ERP. HiTTO Inc. Established in 2006 Provides the internal AI Chatbot, HiTTO. Automates internal inquiries to the back-office divisions, thereby boosting operational efficiency and internal DX. We have been expanding the number of HiTTO users by leveraging Money Forwardʼs networks and customer base. Going forward, the HiTTO brand will be integrated into Money Forward Cloud, and through further collaborations of the two services, we will push for even more users and even greater usability. Knowledge Labo, Inc. Representative Director and CEO Hidetsugu Kunimi SMARTCAMP Co., Ltd. Representative Director, President and CEO Shion Hayashi R&AC Co., Ltd. Representative Director Hideomi Tachikawa HiTTO Inc. Representative Director and CEO Akito Kimura * Fully integrated into Money Forward effective March 1, 2024. Nexsol CO., LTD. Established in 2014 Provides a wide range of financial consultation services, including but not limited to insurance, by financial planners. We are pushing collaborations with products including Money Forward ME and Money Forward Personal Financial Consulting. We will continue to join forces to enhance user value proposition and raise the usability of our financial planning services. BizHint Inc. Service launch in 2016 / Established in 2022 Operates BizHint, a platform for managers and decision-makers that supports BtoB marketing. Since joining the group, we have been connecting the membership base of BizHint, Inc., comprising more than 600,000 managers and decision-makers, with the existing businesses of SMARTCAMP Co., Ltd., including BOXIL SaaS, BALES, and ADXL, and conducting precise matching of users with companies. Nexsol CO., LTD. Representative Director Michiteru Kokatsu BizHint Inc. Representative Director Akira Seki July 2018 February 2020 October 2020 December 2021 May 2022 December 2023 Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 32
  • 35. Active Dialogue with the Capital Market and Feedback to the Management and Members My name is Yumiko Nagao and I have been appointed as Group Executive Officer in charge of Finance and IR since December 2023. Having commenced my journey with the company in 2018, I have been intricately involved in diverse facets of corporate development, particularly in the realm of enhancing corporate value through strategic initiatives such as M&As, as well as equity and debt financing, including 4 equity offerings and issuance of convertible bonds (12 billion yen) in August 2023. Our organizational trajectory has witnessed substantial growth, a testament to our adept utilization of raised funds. It is our steadfast commitment to perpetuate a constructive dialogue aimed at aligning with the expectations of the capital market, thereby catalyzing further growth. We pledge not only to disseminate information in a timely and equitable manner but also to refine our communication by providing comprehensive and easily comprehensible messages. Our dedication extends to the continuous enhancement of our practices, informed by the feedback garnered through the daily engagements between investors. The medium- to long-term financial target disclosed in January 2024 was also decided based on these investor feedbacks. Given more than 40% of our shareholder composition comprises overseas institutional investors (p.89), we underscore the significance of timely disclosure and direct communication in English as well. This commitment materializes through initiatives such as conducting financial results briefings in English on the same day as the announcement in Japanese, participation in IR conferences both in Japan and overseas, as well as organizing every IR meeting sans translators. Feedback stemming from our interactions with investors and analysts during IR meetings is diligently reported to the Board of Directors and the leaders of each business division. These insights, in turn, are strategically integrated into our management and business strategies. Internally, we conduct earnings calls wherein over 100 employees actively participate in a dynamic Q&A session with the CFO after each financial results announcement. By fostering opportunities for our employees to engage with the perspectives of the capital market, we ensure that each member comprehends and appreciates the expectations of our stakeholders, thereby fostering active collaboration and understanding in support of our Investor Relations initiatives. Financial Results Briefings for Institutional Investors and Analysts (Japanese): Every Quarter (4) Financial Results Briefings for Earning Calls for Institutional Investors and Analysts (English): Every Quarter (4) IR Meetings: Approximately 400 Analyst Coverage: 9 (including 5 from non-japanese firms) Summary of Investor Relations Activities during FY2023 Medium- to Long-Term Financial Targets and Guidance for FY2024 Our medium- to long-term policy is to aim for a balance of high sales growth and improved profitability. As indicators, we aim to achieve net sales of 100 billion yen or more and EBITDA of 30 billion yen or more in FY2028. In the long term, we are aiming for an EBITDA margin of 40% or higher. Based on this medium- to long-term policy, in FY2024, the Company will continue to concentrate its business resources in the Business domain and maintain high growth rates of both net sales and SaaS ARR at +30% YoY or higher, respectively, while right-sizing costs mainly by keeping advertising expenses down to 15% to 17% of net sales (18.7% in the previous fiscal year) and personnel expenses and outsourcing expenses down to 64.0% to 69.0% of net sales (74.8% in the previous fiscal year), for better profitability. In the four domains other than Business, we will sustain growth but prioritize improving profitability. The guidance for FY2024 is as shown below and we project an improvement of 10% to 15% YoY in the EBITDA margin. We will continue to agilely deploy strategies to make our Mission and Vision a reality so that we will be able to meet the expectations of our investors and shareholders into the future. Full year YoY Growth Net Sales ¥39.5-42.0 bn 30.0〜38.3% SaaS ARR ¥30.0-31.6 bn 29.6〜36.6% EBITDA ¥1.0-3.0 bn - (¥ mn) 11,319 FY11/20 FY11/21 FY11/22 FY11/23 FY11/24 FY11/25 FY11/26 FY11/27 FY11/28 (1,951) (6,029) 430 (2,260) ¥100bn+ 15,633 21,477 30,381 39,500〜42,000 FY11/28 net sales ¥30bn 40%+ FY11/28 EBITDA EBITDA margin in longer term Medium- to Long-Term Financial Targets Executives(p.77) Group Executive Officer Head of Finance and IR Yumiko Nagao Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 33
  • 36. Highlights 01 Financial Highlights (FY2023) Consolidated Net Sales ¥30,381mn Consolidated net sales jumped 41% YoY, topping ¥30 billion. In particular, sales of Business domain, which accounts for more than 60% of total sales, soared 47%. (FY) (¥mn) 11/18 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 * SaaS ARR is 12 times the monthly recurring revenue (MRR) of Business, Home, X, and Finance domains in the final month of each term. As for the bookkeeping service STREAMED, its MRR is calculated as one-third of its service revenues in Q1 and Q2 to adjust for seasonal factors. 4,595 11/19 11/20 11/21 11/22 11/23 7,157 11,319 15,633 21,477 30,381 YoY +41% YoY +42% SaaS ARR surged 42% YoY. While ARR expanded in all domains, corporate ARR in Business saw a marked increase of 46%. SaaS ARR ¥23,146mn (FY) (¥mn) 11/18 4,164 11/19 11/20 11/21 11/22 11/23 6,319 8,439 11,227 16,299 23,146 22,000 16,000 12,000 8,000 4,000 0 * EBITDA = Operating profit/loss + Depreciation and amortization + Tax expenses included in operating expenses + Share-based remuneration expenses EBITDA improved by ¥3.8 billion over the previous year. EBITDA margin stood at (7)%, representing an improvement of 21 points YoY. We expect further improvements in profitability toward our goal of achieving a positive EBITDA in FY11/24. EBITDA ¥(2,260)mn Excl. advertising expenses ¥3,409mn (FY) (¥mn) 11/18 (595) EBITDA (144) 11/19 11/20 11/21 11/22 11/23 4,000 2,000 0 (2,000) (4,000) (6,000) (8,000) (2,098) (578) (1,951) (6,029) 1,411 3,126 430 3,409 (2,260) 556 EBITDA(excl. advertising expenses) Business Domain (Corporate Customers) Paying customers 301k companies ARPA¥60,911 The number of paying customers increased steadily, up 27.8% YoY. ARPA continued to climb firmly, up 12.1%, mainly on the expansion in the mid-market user base. (FY) (10k companies) (¥) 11/19 35 30 25 20 15 10 5 0 120,000 100,000 80,000 60,000 40,000 20,000 0 * “Total users” is the cumulative number of app downloads and online registrations for Money Forward ME. * “Corporate customers” are paying subscribers of services provided in Business domain, consisting of 1) professional service firms and their clients and 2) businesses and sole proprietors who have subscribed via direct marketing, including the web channel or field sales. * ARPA: average revenue per paying account. Calculated as: (ARR as of the end of a particular term) / (number of customers). 11.8 11/20 11/21 11/22 11/23 14.2 18.3 23.6 30.1 The number of total and paying users is expanding steadily, topping 15.3 million and 520,000, respectively. Home Domain (Individual Customers) Total users 15.3mn Paying users 529k (FY) (10k users) (10k paying users) 11/18 11/19 11/20 11/21 11/22 11/23 1,600 1,400 1,200 1,000 800 600 400 200 0 The corporate headcount increased by 236 over the previous year and crossed 2,000 through the global hiring of excellent and diverse talents. 39,488 680 15.7 850 20.7 1,070 26.8 1,230 34.7 1,400 40.6 1,530 43,864 46,187 54,330 60,911 Paying customers ARPA 60 50 40 30 20 10 0 52.9 Employees 2,130 YoY +236 (FY) (Employees) 11/18 394 11/19 11/20 11/22 11/22 11/23 691 865 1,248 1,894 2,130 2,000 1,600 1,200 800 400 0 Total users Paying users Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 34
  • 37. Business Home Finance SaaS Marketing X 売上構成比グラフ Highlights 02 Business Highlights (FY2023) SaaS Applications for Back-Office Operations Provides Money Forward Cloud and other cloud services for back-office operations (i.e., accounting and finance, HR, legal affairs, and IT) to companies at various growth stages, from startup to post-IPO expansion. Also offers payment, fund procurement, and other fintech services to deliver values beyond simply streamlining operations. paying corporate customers 301k+ 61.7% Sales growth (YoY) +47% * 1 “Users” is the cumulative number of app downloads and online registrations for Money Forward ME. * 2 The total amount of financial assets that is aggregated in Money Forward ME and white-label services for individuals provided by Money Forward X. Personal Financial Management (PFM) Services Provides Money Forward ME and other financial services for individuals. The number of Money Forward ME users has exceeded 15.3 million*1 , with paying users topping 520,000 and the asset balance of connected services reaching ¥21 trillion*2 . Also expanding services for resolving financial issues, such as consultations by financial planners. users*1 15.3mn+ 13.1% Sales growth (YoY) +27% Co-created Financial Services Provides the Mikatano series, a digital service for regional SMEs, and other services co-created with partner banks. Applies a B2B2X model, in which Money Forward services are provided via our partners to their customers. Focused on collaborating with local banks with the aim of bridging the regional digital divide. Financing Services Provides Money Forward Kessai, Money Forward Early Payment, and invoicing BPO and online factoring services. Enables quick credit screening based on a proprietary model and swiftly addresses the needs of companies to outsource invoicing and expedite cash flow management. SaaS Marketing Platform Provides SaaS companies with end-to-end marketing support through comparison site BOXIL SaaS, which produces matches between SaaS providers and companies wishing to adopt SaaS. BizHint, a website dedicated to cloud adoption and enhanced productivity, has recently been added to the product lineup. Mikatano series adopted by 36 financial institutions 8.3% Sales growth (YoY) +52% * The cumulative amount transacted via Money Forward Kessai, Money Forward Transaction Finance for Startups, and Money Forward Early Payment. * Number of BOXIL SaaS members as of March 2022 in cumulative transaction volume* ¥200bn+ 5.2% Sales growth (YoY) +36% No. of members 150K* 11.6% Sales growth (YoY) +28% Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 35
  • 38. ■Mission and Business Opportunities Business Forward. Move Your Work Forward. Money Forward Cloud is a SaaS service that connects various back-office data to streamline operations in accounting and finance, HR, and legal affairs. Since the service was released in 2013, we have been expediting the DX of back-office operations of sole proprietors and SMEs, and since 2020, we have been expanding our reach to target medium-sized companies. Empathy for our customers has remained a constant in the values that we embrace. The Group views the back office not as a target for streamlining but as the backbone of a company and the source of its strength. We aspire to “Move Business Forward. Move Your Work Forward.” through operational reforms based on digitalization and cloud adoption. Steady Cloud Adoption in the Back Office Backed by Government Promotion of Digitalization and Law Revisions According to a survey by Gartner, Inc.* of the U.S., Japan is ranked as a “resistive country” more than seven years behind the U.S. in adopting cloud services. Thus, there is ample room for the penetration of such services. In addition, the recent proliferation of remote work and institutional reforms toward digitalization have led to steady cloud adoption and substantial market expansion. In its Interim DX Report 2 (December 28, 2020), METI warned that existing systems, which are outdated and becoming increasingly complex and opaque, will hinder DX. At the same time, the report urged companies to strategically deploy DX with the aim of transforming into digital companies by 2025. This also underscores expectations that Japan as a whole will pivot toward cloud services. Furthermore, the favorable business environment will likely prevail thanks to such factors as the expected rise in demand for replacing existing systems in response to law reforms that will significantly impact back-office operations, including compliance with the Qualified Invoice System and the Electronic Record Retention Law, which went into effect in October 2023. Against this backdrop, the Group anticipates pronounced growth as the leading provider of cloud-based ERP. * Based on the percentage and growth rate of cloud spending in 2022 (by country). 02 Our Business Business Domain Executives (p.74) Director, Group Executive Officer Money Forward Business Company COO Masanobu Takeda Executives (p.77) Group Executive Officer Money Forward Business Company CSO Kazuya Yamada Executives (p.77) Group Executive Officer Money Forward Business Company VPoE Ryo Shibuya Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 36
  • 39. ■Our Competitive Advantage Providing Products that Fulfill the Needs of Every Type of Company from Sole Proprietors to Medium-Size Companies, and Even Large Corporations Money Forward Cloud began as a tax return and accounting software product targeting sole proprietors and SMEs. Currently, our product lineup has expanded beyond accounting and finance to fulfill the needs in various areas including HR, legal affairs, and IT, of companies of varying stages of growth, from startup to the post-IPO expansion phase (See diagram below). Efficiency and Convenience Made Possible by Cloud Services We capitalize on the features of cloud services to raise efficiency in various operations. For example, in the area of accounting and finance, we automate data and journal entries by connecting data with an array of external services including banks and credit card services, electronic money, and POS cash registers. In addition, by leveraging the latest technology such as generative AI, we can, for example, prompt account titles in the consolidation process and automatically generate payroll calculations. In the HR area, employee onboarding and offboarding procedures, as well as attendance can be managed on the cloud. Also, by connecting attendance data to the payroll system, payroll calculations and salary payments can be completed via the cloud. Furthermore, multiple users anywhere and anytime can operate the system across various devices, as long as there is Internet connection, and unlike conventional packaged software, we can provide free and quick updates to comply with law revisions or consumption tax changes as well as daily service improvements (See diagram below). Sole proprietors SMEs Medium-sized and pre-IPO companies Listed companies Mainly for professional service firms Mainly for medium-sized companies Product Lineup that Fulfills the Needs of Every Type of Company For sole proprietors For SMEs For medium-sized,pre-IPO, and listed companies For companies of all sizes Reduces time and effort of data entry Gains intelligence through AI Can be used anytime, anywhere Data is securely saved Updates are free Offers extensive services Efficiency and Convenience Made Possible by Cloud Services Money Forward Cloud Accounting Holds Top Market Share Among Accounting Firms We have strengthened partnerships with professional service firms, who are vital partners in resolving managerial issues of companies across the nation. Currently, our roster includes 32,364 certified members*1 of professional service firms(p.65). Furthermore, Money Forward Cloud Accounting holds top market share*2 as the accounting software used the most by accounting firms. In addition to bolstering the environment where professional service firms can unleash their expertise and offering Money Forward Cloud, we aspire to be a business partner who addresses and resolves the various challenges facing professional service firms. *1 For the definition and calculation method, please refer to p.83. *2 Source: Materials for the Joint Regular Management Workshop for Accounting Firms, Funai Consulting Incorporated (December 9, 2023) Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 37
  • 40. usersʼ accounts receivable/accounts payable information on SaaS applications. We will tap into the data accumulated in Money Forward Cloud to create further value beyond streamlining and optimize user experience. From now on, we will further drive our “SaaS and Fintech Strategy” forward, ultimately making SaaS and finance seamless to deliver a wide range of options such as payment and funding in order for the businesses of our customers to grow. ●Money Forward Pay for Business We provide Money Forward Pay for Business as a fintech service that uses data from Money Forward Cloud. As a payment method, we offer Money Forward Business Card. ●Online Factoring Biz Forward, Inc., a joint venture with Mitsubishi UFJ Financial Group, provides SHIKIN+, an online factoring service (p. 44). Connecting these services with Money Forward Cloud and embedding the factoring function in the SaaS application translates into smoother funding. ●Money Transfer Platform We are developing a platform that ensures a seamless process up to and including money transfers that can be completed entirely in the system by embedding remittance functions into Money Forward Cloud. The remittance functions embedded in Money Forward Cloud will eliminate the separation of back-office and payment operations, enabling an end to end service including payment. Providing back office SaaS applications Paper data Creation of new fintech services Accounting Development of BtoB payment services HRIS Invoice Issuing Invoice Receiving Cloud adoption Data accumulation ■Growth Strategy In the Business Domain, the two pillars of our growth strategy are the “Component-based ERP Strategy” and the “SaaS and Fintech Strategy.” The Component-based ERP Strategy Among our service offerings is Money Forward Cloud ERP, a cloud-based ERP for growing and medium-sized companies. We have adopted a component-based ERP architecture that enables users to start from a single service, such as for expense reimbursement or complying with the Qualified Invoice System. By making it easier to deploy components in phases starting from areas where customers face pressing issues, we are seeing an uptick in adoption among medium-sized and large companies. We are also seeing cases where companies are opting for not just one but multiple services, such as the additional deployment of services in line with business growth and ahead of IPOs, or multiple group companies starting to use Money Forward Cloud services in the process of driving the groupʼs digital transformation from the standpoint of compliance with laws and costs. SaaS and Fintech Strategy Many companies have been steadily digitalizing and adopting cloud services in their back-office operations, prompted by the governmentʼs promotion of DX and the need to comply with laws. This has been conducive to the accumulation of Before adoption Adoption in stages in combination with existing products of other companies is possible Improving operational flow by fully covering back-office operations Expense Payroll Accounting Invoice Issuing Expense Payroll Accounting Invoice Issuing Expense Payroll Accounting Invoice Issuing Introduction 01 Sustainability 02 Our Business 03 Values & Culture 04 Governance 05 Facts & Data 38