Money Forward : Notice Regarding Reduction of Legal Capital Surplus and Appropriation of Surplus

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes.

In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

	January 14, 2022
Company Name:	Money Forward, Inc.
Representative:	Yosuke Tsuji
	Representative Director, President and CEO
	(Securities Code: 3994,
	Stock Exchange: TSE First Section)
Inquiries:	Naoya Kanesaka
	Director, Executive Officer and CFO
	(TEL: [phone])

Notice Regarding Reduction of Legal Capital Surplus and Appropriation of Surplus

Money Forward, Inc. (the "Company"), hereby announces that it has decided, by a resolution of its Board of Directors on January 14, 2022, to submit a proposal of "Reduction of Legal Capital Surplus and Appropriation of Surplus" to the 10th Annual General Meeting of Shareholders of the Company which will be held on February 21, 2022.

1. Purpose of reduction of legal capital surplus and appropriation of surplus

The purpose of this matter is to cover the deficit of retained earnings brought forward to restore the financial position.

2. Outline of reduction of legal capital surplus and appropriation of surplus

(1) Outline of reduction of legal capital surplus

Based on the provisions set forth in Article 448, paragraph (1) of the Companies Act, the Company will reduce legal capital surplus and transfer such amounts to other capital surplus.

1. Amount of legal capital surplus to be reduced Legal capital surplus 1,924,900,585 yen
2. Amount of other capital surplus to be increased Other capital surplus 1,924,900,585 yen
3. Amount of legal capital surplus after the reduction

Legal capital surplus 17,024,674,202 yen

(2) Outline of appropriation of surplus

Pursuant to Article 452 of the Companies Act, the amount of the other capital surplus, which will come into existence on the condition that the reduction of legal capital surplus mentioned in (1) above comes into effect, shall be decreased, and the amount of this decrease shall be transferred to retained earnings brought forward to compensate for losses.

(i) Item of surplus to be decreased and amount of decrease

Other capital surplus 1,924,900,585 yen

(ii) Item of surplus to be increased and amount of increase

Retained earnings brought forward 1,924,900,585 yen

3.	Schedule for reduction of legal capital surplus and appropriation of surplus
(1)	Date of resolution of the Board of Directors' meeting	January 14, 2022
(2)	Date of resolution of the Annual General Meeting of Shareholders	February 21, 2022 (Scheduled)
(3)	Effective date of reduction of legal capital surplus and appropriation of surplus	February 21, 2022 (Scheduled)
4.	Future outlook

This matter is only an account transfer within the net asset section and does not change the figure of the net assets and therefore gives no impact on the Company's financial performance.