Freee K K : Announcement of Exceeding JPY 10 Billion in ARR

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March 3, 2021

Company Name	freee K.K.
Representative	Daisuke Sasaki,
CEO and Representative Director
Code No.	4478, Tokyo Stock Exchange
Mothers
Contact	Sumito Togo, CFO and Director
(TEL. [phone])

Announcement of Exceeding JPY 10 Billion in ARR

freee K.K. announces that, on March 2, 2021, the company's ARR​ ​ exceeded JPY 10 billion. For this outcome, we would like to express our sincere gratitude to our customers and stakeholders.

(1)

This ARR figure indicates that our services are continuously used by a great number of customers. The

company has reached this achievement in 8 years and 8 months since its foundation​ and at the fastest

(2)​

pace among Japanese SaaS​3 businesses, and this is the significant step toward the realization of our mission to "Empower Small Businesses to Take Center Stage."

（ ）​

With an awareness of our role in society to deliver essential value, we will continue striving for greater support in our services among the increasing number of customers.

Notes:

• 1. ARR: Annual Recurring Revenue. Calculated by multiplying MRR that is current as of a particular date by 12. MRR: Monthly Recurring Revenue. Defined as the amount of fees contracted to be paid by customers on a monthly basis as of the end of a particular month, excluding certain fees that we consider to be non-recurring such as initial set-up and other one-time fees.

• 2. The company exceeded the ARR of JPY 10 billion at the fastest pace among domestic SaaS companies, i.e. in 8 years and 8 months since its foundation (based on our research; as of March 3, 2021).

• 3. SaaS: Software as a Service. Refers to subscription-based software available as a service without installing any software on user-side devices.