Factbook

freee K. K.
August, 2023

Contents
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

About freee
Member & Culture
Integrated Management Platform
Market Landscape in Japan
Mid-to-Long-term Strategy
Go-to-market Strategy
Key Metrics
ESG
Case Study
Others (Product Overview)2

About freee

3freee at a Glance

Founded:# of Employees(1)Subscription Rate(2)

2012

1,299

90%+

ARR(3)# of Paying Customers(4)LTM Average Churn Rate(5)451K+ / 159K+

1.2% / 0.6%

JPY

20.5BnTotal

Corporates

OverallCorporates

1. As of June 30, 2023.
2. For the twelve months of the fiscal year ending June 30, 2023. Rate calculated by dividing subscription revenue (revenue earned every month from contracts that automatically renew unless customer indicates intention toterminate) by total revenue.
3. Annual Recurring Revenue. Monthly Recurring Revenue (MRR) at June 2023, multiplied by 12. Monthly Recurring Revenue is defined as the amount of fees contracted to be paid by customers on a monthly basis as ofthe end of a particular month.
4. As of June 30, 2023. The number of paying customers includes self-employed customers.
5. As of June 30, 2023. Average monthly churn rate (ARR of paying customers who left freee in a month / ARR at the end of the previous month) for the past 12 months. All customer segments are included in this calculation.

4

Mission

Empower Small Businesses
to Take Center Stage
With the mission of empowering small businesses to takecenter stage, we strive to develop and offer innovative
solutions with the aim of creating a platform that empowers
anyone with ideas, passion and skills to easily grow a robust
and streamlined business.
We believe that small businesses have the ability to act quickly
and boldly to put ideas into action, positioning them to achieve
innovation in various areas, push big businesses to evolve andinspire new movements and ideas in society.

VisionIntegrated Management Platform forEveryone to Manage Business Freely
We strive to develop and offer an “integrated management platform” for creating environments where anyone andeveryone can manage their own business freely and naturally.
We dedicate to integration of back office operations in order to enhance automation and increase overall operational
efficiency. By visualizing comprehensive management structures, we will advance the platform into the one that enables
smart and best business actions than ever before.
In addition, as an open platform that builds connections with external services, we support various business needs.
Likewise, we are also committed to vitalizing mutual business transactions within the user network. We do not just offer
a platform. We promote change in society by striving to improve the environment for the people involved in small
businesses.

Our Services for 6 Million+ Potential Customers
Large Enterprise# of Potential
Customers(2)(1,000EE+(1))

Mid

c.

0.3MM

Features of Japanese Market

1

Persistent opportunity in Japan for cloud accounting
software compared to overseas markets

2

Japan’s Attractive Market in Mid Segment

3

Promotion for digitalization by government(20-1,000EE(1))

Small
(1)

(1-19EE )Self-employed

TargetSegment

c.

c.

1.5MM
4.7MM

1. EE: Employee.
2. Number of potential customers of Self-employed: Company’s estimate based on National Tax Agency “Tax Statistics 2020” ; Number of potential customers of Small and Mid: Company’s estimate based on Ministry ofInternal Affairs and Communications “2016 Economic Census for Business Activity”.

7

Hugely Untapped Cloud Accounting SW Market: Significant Growth
Opportunities
Adoption Rate of Accounting Software
among Japan’s Small Businesses(1)Outsource, excel etc.

Share of Cloud Accounting Softwarein Accounting Software Used by Small
Businesses(2)Software54.1%
ソフトウェア54.1%
36.5%

Corporations

Self-employed

Leading
Cloud Accounting
Software Services(Release Date)(3)

Japan

UK

US

Australia

New
Zealandfreee Accounting(2013)

Sage(c. 2011)

Intuit(c. 2010)

Xero(2008)

Xero(2007)

1. Source: MM Research Institute, Ltd.’s August 2017 survey on the status of adoption of cloud accounting software by corporations and April 2022 survey on the status of adoption of cloud accounting software by
self-employed. Data on corporation is the adoption rate of accounting software among small and medium corporations with 300 or fewer employees.
2. Source: International Data Corporation (IDC), Worldwide Public Cloud Services Spending Guide Software Add On: V2 2023. The share of cloud accounting software among corporations with fewer than 1,000 employees
or self-employed individuals in each country was obtained by dividing the size of the cloud accounting software market by that of the accounting software market.
3. Based on our research.

8

Japan’s Attractive Market in Mid Segment
Share of Mid/Larger-sized Companies
among All Companies(1)Cloud Accounting Software Penetration Ratein Japan’s Mid-sized Companies (2)

Japan

Cloud

US

34.6%
Australia

On-premises etc.

65.4%
New Zealand

1. Share of companies with 20 or more employees.
Source: Ministry of Internal Affairs and Communications “2021 Economic Census for Business Activity”; United States Census Bureau(2023.2); Australian Bureau of Statistics(2022.12); Statistics New Zealand(2022)
2. Source: International Data Corporation (IDC), Worldwide Public Cloud Services Spending Guide Software Add On: V2 2023.

9

Our Integrated Cloud ERP for SMB
Cloud-native(1)Integrated Accounting Software

Cloud-native
Integrated Payroll Software

freee Accounting

freee HR

Launched in 2013.3
No.1 Japan CloudMarket Share (2)Launched in 2014.10
No.1 Japan CloudMarket Share (3)Invoicing | Expense reports | Financial statements |Budgeting | Workflow | Internal controls

Time tracking | Joining/leaving management | Payroll| Year-end tax adjustments and filings |Personal identification number (My number) management

Other Products
freee
Order Management

freee Tax Filing

freee
Expense Management

freee
Workload Management

freeeTime Tracking Plus(for the Mid segment)

freee Founding

freee Card Unlimited

freee Opening

freee Ordering

freee Sign

freee
Employee Benefits

1. Cloud-native services: Services that give users access to an IT system via the Internet, eliminating the need to own software or hardware.
2. Source: LeadPlus, “Industry Analysis Through Keywords Series: Cloud Accounting Software” (August 2022).
3. Source: MM Research Institute. Web survey in March 2016 of employees of entities with less than 300 employees about the usage of cloud payroll software in Japan (N=4,168).

10

The Only "Integrated Management Platform" for Small Businesses in Japan
Cloud native

Single-solution
cloud software

Unique position
as integrated accounting software
for SMBs

freee Accounting
Integrated
accounting software(ERP)

Single-solution
accounting software

Single-solution
on-premisesoftware

ERP used by large enterprises

Compelling Value
Proposition➢ Easy-to-use, automatedfunctionality➢ Fully-integrated,comprehensive back office
functions➢ Navigational solutions
supporting informed
decision-making➢ Collaborative across internalfunctions➢ Scalability through public API(1)Desktop / Manual entry
1. Public API: An API that is meant for internal use only is called a private API while an API that is accessible by external entities is called an open API. An open API that is publicly available to a wide range of entities not only
specific partners is called a public API.

11

“Integration” and “Connection”: Differing User Experiences● Integrated cloud ERP lowers hurdles for management and supports small businesses to manage their business freely.

Connection

Integration(Other services)(freee)A

B(A+B+C+D+・・・)

C

D

Fragmented links●●

User interfaces among modules are different
and take time to get used to…
A and B are showing different figures; which
one is correct? I’m not sure about this, I
need to check it over one more time…

A, B…：Modules

Reorganized as a single unit●

It’s easy to setup and learn how to use!

●

Real-time data synchronization between
functions minimizes the burden of checking
numbers!

●

It’s easy to analyze business conditions andget insights!

12Difference in Architecture between "Integrated ERP"and “Single-solution Accounting Software/Connection”● freee Accounting is an "integrated cloud accounting software" that covers not only financial accounting but also invoicing, expense, workflow
functions, and more on the same software. By running business operations other than financial accounting with freee Accounting, the accounting
books are automatically created.
○ In addition to journal entry data, transaction data such as counterparty, approval history, vouchers, settlement status of each transaction canbe centrally managed on the same database, contributing to more efficient management and back-office operations and quicker businessdecisions.

Integrated Accounting Software

Workflow

Financial
Accounting

Single-solution Accounting Software
Workflow

Financial
Accounting

Invoicing

Data

Data

Data

ExpenseManagement
Accounting

Account Receivable /Bill Management

Data

Data

Data

Invoicing

Data
ExpenseAccount Receivable /Bill Management
Management
Accounting

Transaction Data
(counterparty, approval history,
vouchers, settlement status, etc.)

Journal Entry Data
13

Member & Culture14

Born in Tokyo in 1980 and brought up in a family running a beauty salon. Graduatedfrom the Faculty of Commerce and Management, Hitotsubashi University.
Assumed the post of the Head of APAC SMB Marketing Department at Google andpromoted use of Internet ads among Japanese SMBs, among which ads in the formsof FAX marketing and hard-copy flyers were conventionally the mainstream. Also
played a role of CFO at a startup, where he experienced the complication of
accounting operations.
Based upon these experiences, founded freee K.K. with a mission to boost low
productivity and lagged use of new technologies at Japanese small businesses.
At freee, has launched software applications including “freee Accounting” designed forease of preparation of financial statements and tax return.

Daisuke “Dice” Sasaki
Co-founder and CEO
freee K.K.

Concurrently serves as a member of the Management Council of Hitotsubashi
University. A father of two children. A favorite word is “MAJI-KACHI” (a true customer
value).
<Career>
2004.3
2004.4 - 2006.6
2006.6 - 2007.4
2007.5 - 2008.5
2008.5 - 2012.7
2012.7

Graduated from Hitotsubashi University
Hakuhodo Inc.
Investment Fund (CLSA Capital Partners)
ALBERT Inc.
Google Inc.
Founded freee K.K.

15

Born in Akashi, known as Japan's meridian city in Hyogo Pref. Graduated fromThe University of Tokyo. Master of Engineering. At School of Engineering of The
University of Tokyo, belonged to JAXA's Lab. Joined freee in 2013 after McKinsey
and Google. Likes to drive, play table tennis and to play Dragon Quest III.

Sumito Togo
Director and CPO

Born in Matsue, known as the Ruby City. Graduated from Keio Univ. Graduate
School. Started system development for corporations when he was a student.
Worked at Sony, and co-founded freee. Aims to redefine the existence of small
businesses through the power of technology.

Ryu Yokoji
Co-founder and CTO

16

Yoko Naito
Outside Director (Audit and Supervisory Committee
Member)Appointed as a full-time Corporate Auditor of freee in September 2018
after working at a securities company and Ernst & Young ShinNihon
LLC.

Junichi Kawai
Outside Director (Audit and Supervisory Committee
Member)Joined Google after working at Recruit, McKinsey, etc., and has
served as a Senior Executive Officer at Google since November 2017.

Shinji Asada

Yumi Hosaka Clark

Outside Director (Audit and Supervisory Committee
Member)Outside Director

Founded One Capital Corporation in April 2020 after working at
ITOCHU Corporation and salesforce.com.

Served as a Vice President at Capital One and Visa after working at
Adobe, PayPal, eBay, Intuit, etc. Joined Quicken Inc. as a Vice
President of Integrated Financial Services in March 2021.

17

freeeの沿革
2023/6
Why joins Group
2022/7
Mikatus joins Group
2021/6
Rebranded

2023/6
Reached ARR of JPY 20.0 bn

2021/4Sight Visit joins Group
2023/1sweeep joins Group

2021/3
Reached ARR of JPY 10.0 bn
2021/7
LiKHA-iT joins Group

2019/5
Reached ARR of JPY 5.0 bn

2014/10
Released “Cloud Payroll Software freee(currently freee HR)”

2021/6
Taxnote joins Group
2021/4
Public offering overseas

2012/7
Founded freee

2019/12
Listed on TSE Mothers
2017/3
Launched services for the Mid segment
Launched Enterprise Plan

2013/3
Released “Cloud Accounting Software freee(currently freee Accounting)”

18

freee’s Unique Culture
Two Core Principles to deliver “true customer value”

Take responsibility for societal progress.

Movement-minded team.

We aim to undertake new challenges to promotesocietal progress. We will take action to pursue
projects that can change the world.

We have a shared vision of how we want the world
to be. Each individual member of our team adopts
a self-starting approach while at the same timeseeking to lead and engage with other teammembers.

19

freee’s Unique Culture
Code of Conduct to deliver “true customer value”
Ideal-driven.

Be “Your-own Ghost Buster.”Start with your ideal solution to a problem
without regard to real world limitations or
roadblocks that may stand in your way.
Challenge yourself without being limited byyour current resources or skills.

Don’t fear your own “ghost” (your own
pre-conceived ideas of who you are). Be bravein facing up to yourself and continually seek
and absorb feedback.

Output → then think.

Dare to share.

Achieve output first. Then think and refine.

Know your people and your team, and shareabout yourself so others know about you.
Through exchanging feedback openly, aim togrow together.

Hack Everything★
Seek a deep understanding of the task at hand
and the resources you have. Then think ofideas outside those boundaries.

20

Integrated Management Platform

21

VisionIntegrated Management Platform for Everyone
to Manage Business Freely

1
Integrated Cloud ERP(1)Realizing smart and best business actions

Workflow2

3Open Platform

User Network

Supporting diverse businessand management needs

Improving the efficiency and vitalityof business transactions

HR

Order
Management

Contract
Partners
HR
Workflow

Project
Management

Invoicing

Fixed Asset
Project
Management

ExpenseAccounting

Invoicing
Expense Account Receivable /Bill Management

Account Receivable /Bill Management

Financial
Institutions

Accounting

1. ERP: Abbreviation for Enterprise Resources Planning. In Japanese, it is generally called "ERP" or "ERP package," referring to a system that collects all the information scattered throughout a company's management in
one place for centralized management.

22

Integrated Cloud ERP Enabling Smart and Best Business Actions● Expanded scope of operations and data covered by our integrated ERP solutions allows the realization of smart and best business actions, witha broader range of "automation" and "visualization" of business activities.

Workflow
Order
ManagementHR

1. Automation

Contract

Project
Management

Fixed Asset

2. Visualization
ExpenseAPI
LinkageInvoicing

Accounts
Accounting
Receivable/
Bill Management

API
Linkage

Number of Apps Listed on
freee App Store：161 (1)Partnered Financial

3. Realization of smart andbest business actions

Institutions：1,125 (2)1. As of March 31, 2023.
2. Partnered FInancial Institutions: Financial institutions contracted concerning API linkage. As of June 30, 2022.

23

Customer Experience Enabled by Integrated Management Platoform● In order for everyone to manage their own business freely, we keep enhancing the “Integrated experience.”

Advantages Enabled byIntegrated Management Platform

Value Propositions to Customers
Released

1. Automation

No need to spend time considering extra
information.

Relaxed and Confident
2. Visualization

3. Realization of smart andbest business actions

Confidently and speedily manage yourbusiness using data.

Freedom

Enjoyable
Able to focus on what you want to think about
to develop better ideas and better businesses.

24Market Landscape in Japan25

Huge Opportunity to Penetrate Cloud Accounting Software in Japan
freee Accounting
Customers
freee Accounting Customers
Cloud Accounting Software Users
On-Premises Accounting Software Users

Excel etc.

Excel, Paper, Others

Potential
Customersc.

Digitalization

6.6MM

(1)

Cloud
Penetration
On-Premises

1. Source：MM Research Institute, Ltd.’s August 2017 survey on the status of adoption of cloud accounting software by corporations, MM Research Institute, Ltd.’s April 2020 survey on the status of adoption of cloud
accounting software by self-employed, International Data Corporation (IDC), Worldwide Public Cloud Services Spending Guide Software Add On: V2 2023.

26

Acceleration of Digitalization and Cloud Penetration by Amendment ofElectronic Books Maintenance Act and Introduction of Invoice System
Burden on Companies from System Changes

Support by freee Accounting

Oct. 1, 2023 ~Invoice System
Retain copies of all

Digitization of invoicing

issued qualified invoices
Jan. 1, 2024 ~Date: Oct. 10, 2023

Price : JPY 1,430
Item: Travel/transportation expenses

Issuer : freee Taxi
Tax

Compulsory Electronic
Maintenance ofTransaction Data

Retain copies of allreceived invoices and receipts(with some exceptions)

Increased burden ofbook-keeping
for not just dates, prices, and items, butalso counterparties, transaction details,
and tax categories

Advance paperless efforts
for internal processes: 8% (reduced)

Utilizing AI-OCR
in book-keeping27External Environment That Drives Use of Cloud Accounting Software
1. Invoice System for Consumption Tax Credit● The Invoice System is a new regulation on tax credit for consumption tax on purchases that will begin on October 1, 2023.
● Not responding to the system results in disadvantages for both sellers and buyers of products/services from a business perspective.
Disadvantages from a Business Perspective (when not responding to the Invoice System)
Invoice

SellerBuyer

May lose business opportunities
when required to issue qualified invoices by buyers

Must pay increased amount for taxes
without tax credit for consumption tax on purchases

Businesses who need to prepare:c. 6.90MM at a maximum
Taxable Personc.2.04MM(1)Taxable Person(Simplified) c.1.14MM(1)Tax-exempt Person
c.3.72MM(2)Businesses who need to prepare:c. 2.04MM at a maximum
Taxable Person c.2.04MM(1)1. Source: Ministry of Finance et al., “Q&A on Preparation for the Invoice System by Tax-exempt Person and Their Counterparty.” A taxable person is one with taxable revenue of more than JPY10MM who are obligated to
pay consumption tax. If a person has taxable revenue of JPY50MM or less and selects the simplified taxation method, they will be required to be prepared only as the seller.
2. Source: Government statements in the 198th Financial Affairs Committee (26th, February 2019). The figure excludes businesses in the agriculture, forestry and fisheries industry that ship to agricultural cooperatives etc.,
and businesses whose main revenue is non-taxable sales. A tax-exempt person is one with taxable revenue of JPY10MM or less who are exempt from paying consumption tax.

28

External Environment That Drives Use of Cloud Accounting Software
2. Amendment of Electronic Books Maintenance Act● The amendment of the Electronic Books Maintenance Act in January 2022 significantly relaxed requirements for the storage of electronic books
and scanned documents.
● In particular, as a result of the relaxation of requirements for the storage of scanned documents, original paper evidences can be disposed of
immediately once they have been saved in the cloud(1).

Electronic Book-keeping

Scanned Documents

Electronic Transactions● Requirements for the electronic
book-keeping were significantly relaxed.

● Requirements for the storage of scanned data
were relaxed significantly.
● Vouchers saved in the cloud can be disposedof immediately.

● Electronic transactions data such as bankand credit card statements must be
stored electronically.
● Paper-based storage will be prohibitedfrom January 2024 onwards.

1. To meet the requirements of the Electronic Books Maintenance Act, a cloud system that can search evidence such as date and amount of receipts and has a history of corrections and deletions of the evidence must be
used.

29

Go-to-market Strategy

30Integrated Management Platform for Everyone to Manage Business Freely
Small business 6.6MM(1)Integrated management platform

Workflow
Order
Management

Self-employedHRc. 4.7 MM

Contract

Sales Partner

Project
Management

Fixed Asset

Small(1-19EE)

Accountants
ExpenseAPI
LinkageInvoicing

Accounts
Accounting
Receivable/
Bill Management

API
LinkageFInancial Institutions

Mid
Product Partners

Number of Apps Listed onc. 1.5 MM(20-1,000EE)

c. 0.3 MM

freee App Store：161 (2)Partnered Financial
Institutions：1,125 (3)1. Number of potential customers of Self-employed: Company’s estimate based on National Tax Agency “Tax Statistics 2020” ; Number of potential customers of Small and Mid: Company’s estimate based on Ministry ofInternal Affairs and Communications “2016 Economic Census for Business Activity”.
2. As of March 31, 2023.
3. Partnered FInancial Institutions: Financial institutions contracted concerning API linkage. As of June 30, 2022.

31

Customer Acquisition Channels# of Potential
Customers(2)Self-employedSmall(1-19EE(1))

Mid(20-1,000EE(1))

c. 4.7MMc. 1.5MMc. 0.3MM

MarketingDirectSales

Inbound Marketing

Field Marketing(Offline / Online)ー

Inside Sales

Field Sales(Offline / Online)ー

Online CS

On-site CS(Offline / Online)

ChannelCustomer
Success

Indirect

Accountants

Financial
Institutions

Product
Partners

1. EE: Employee.
2. Number of potential customers of Self-employed: Company’s estimate based on National Tax Agency “Tax Statistics 2020” ; Number of potential customers of Small and Mid: Company’s estimate based on Ministry ofInternal Affairs and Communications “2016 Economic Census for Business Activity”.

32

No.1 Market Share in Cloud Accounting Software

Cloud Accounting Software(1)56.3%

Mobile App(1)71.3%

1. Source: LeadPlus, “Industry Analysis Through Keywords Series: Cloud Accounting Software” (August 2022).

33

freee flywheel: Product-driven Growth
The Only “Integrated Management Platform” for Small Businesses in Japan
Enhance“Integrated Management Platform”●

Enhance “Integrated experience”
by Cross-selling

freee is only company providing integrated
management platform to small businesses in
Japan

●

Improve the quality of existing products●●

Develop new products●

Further pursue the “integrated experience” tocustomers●

Enable future opportunities to cross-sell byleveraging customer base
Expands the “integrated experience” byproviding multiple services

Meet Various Kinds of Customer Needs●

Solidify Customer Base● Develop stickiness by offering customers an
opportunity to try freee’s products and see
their advantages as an integrated ERP● Expanding customer base and strengtheninguser network further enhance the value of
freee as an integrated management platform

As freee develops an integrated management
platform, two solutions can be provided, integrated
solutions and partial solutions, which meet various
customer needs(Example)
Integrated solutions: freee Accounting
Partial solutions: freee A/R & A/P Management34

History of Products

2023/1（4）freee A/R & A/PManagement
2022/7freee Card Unlimited
2022/1
freee Tax Filing for End Users
2021/2freee Opening
2016/10

freee Founding
2015/6freee HR
2014/10

freee App Store
2019/1
freee Employee Benefits
2020/8freee Card
2017/7freee Tax Filing for
Accounting Firms
2016/10

freee Time Tracking Plus
2021/112022/6（5）freee Workload
Management
2020/4freee Sign
2021/4（2）freee Accounting
2013/3freee Smart Ordering
2020/12
freee Funding
2020/6

1. ★: Paid product2. freee Sign by Sight Visit inc. joined the freee group in april 2021.
3. A-Saas by Mikatus inc. joined the freee group in June 2022.
4. sweeep Inc. joined the freee group in January 2023.
5. Bundle by Why Inc.joined the freee group in June 2023.

freee Order Management
2022/112022/6（3）A-SaaS

freee Expense Management
2021/1235

Potential to Expand the Scope of Integrated Cloud ERP
Back Office Operations
Accounting
ExpensePayroll/ Time
Tracking

Emploee Benefits●：Released when IPO●：Already released●：Potential to develop

Legal

Workflow

TalentManagement

Account Receivable /Bill Management

In-house
Development

IT & IDaaS

InvoicingIntegrated Cloud ERP for
SMBs

Project
Management
New

Order
Management
Procurement /Supplier
Managemet

POS /Payment

M&A

CRM
VerticalBusiness
BI / Analysis Operations

API Linkage

Front/Middle Office Operations
36

Expanded TAM by Developing and Acquiring New Products

TAM(1)(2): In-house Development

freee
Accounting

freee
HR

IPO

Today

c.

c. JPY 650Bn

c. JPY 550Bn

freee
Accounting

freee
HR

c. JPY 650Bn

c. JPY 640Bn

: M&A

JPY

1.2Tn

freee
Time Tracking
plus
c. JPY

90Bn

freee
Card
c. JPY 450Bn

freee
Sign
c. JPY 250Bn

freee
Order
Management(3)Others(4)c. JPY

2.3Tn

c. JPY 300Bn

1. TAM: Total Addressable Market: This figure is our estimate of the maximum amount of revenue we could possibly generate and is not intended as an objective indicator of the size of the market for our businesses as of thedate of disclosure of this material. Our estimate of the TAM for each products is based on the following statistical data and publications from external sources and the unit prices of our services. Actual market size may
differ from this estimate due to the limitations peculiar to such statistical data and publications in terms of their accuracy.
2. Source：National Tax Agency “Tax Statistics 2020” ; Ministry of Internal Affairs and Communications “2016 Economic Census for Business Activity” ; Portal Site of Statistics of Japan website .
37
3. freee order management was released in November 2022 and is offered mainly to customers in the small segment at this moment. TAM for this product will be estimated after started offering to the mid segment.
4. Includes freee Workload Management and freee Employee Benefits. freee Employee Benefits provides only company housing program, this figure shows the TAM of company housing program.

Mid-to-Long-term Strategy

38

Strategic Targets for Mid to Long-term Strategy
Strategic Targets

Sales&
Marketing

Financial Outlook

Expanding and Solidifying Our Customer Base

Revenue for FY27.6

Number of Paying Customers
at the end of FY25.6

JPY

700K+ / 250K+
Total

Corporates

Net Revenue Retention Rate(1)for Coporates
at FY27.6

50Bn+

110%+
Cross-selling/Up-selling
Leveraged by Solid Customer Base

Investing in Future Cross-selling/ Up-selling Opportunities
FY2018.6

Research&
Development

In-house
Development

FY2023.6

Adj.Operating Profit Margin(2)for FY25.6
M&A

0%

1. Net Revenue Retention Rate is calculated by dividing the revenue in the particular period for customers who were customers in the same period of the previous fiscal year by the revenue in the same period of the previous
fiscal year. Incremental revenue from accounting firms includes the revenue from the increased revenue by their end users.
39
2. Adjusted operating profit (the sum of the operating profit, stock-based compensation expenses, expenses for amortization of acquisition-related intangible assets, and one-time cost).

Focus Areas for Three Years to Achieve Strategic Targets (FY23-25)

1

4Accelerate investments to enrich “integrated experience”

2

Offer a broader range of landing points to provide various customer
journeys3

Expanding customer base by leveraging No.1 share in cloud accounting
software market

Strengthen organization to enhance product development and sales
capabilities

40

Key Metrics

41

ARR

ARR(At the end of year)(1)(2)
JPY MM

Corporates
Self-employed

FY2018.6

FY2019.6

FY2020.6

FY2021.6

FY2022.6

FY2023.6

1. ARR: Annual Recurring Revenue. Monthly Recurring Revenue for last month of relevant period, multiplied by 12. Monthly Recurring Revenue is defined as the amount of fees contracted to be paid by customers on amonthly basis as of the end of a particular month (excludes one-time fees).
2. freee Sign and Taxnote are consolidated from the fiscal year ended June 30, 2022.Mikatus and sweeep Inc. are consolidated from the fiscal year ended June 30, 2023.

42

Number of Paying Customers

Number of Paying Customers(1)(2)

Corporates
Self-employed

FY2018.6

FY2019.6

FY2020.6

FY2021.6

FY2022.6

FY2023.6

1. Number of paying customers: Refers to both Self-employed individuals and corporations that use our services.
2. freee Sign and Taxnote are consolidated from the fiscal year ended June 30, 2022.Mikatus and sweeep Inc. are consolidated from the fiscal year ended June 30, 2023.

43

Stickiness to “Integrated Cloud ERP” Lowers Churn Rate

Enhancement of existing products and operations

LTM Average Churn Rate(1)OverallCorporates➢ Improvement of UI/UX➢ Enhancement of existing functions➢ Enhancement of customer success
FY2019.6

FY2020.6

FY2021.6

FY2022.6

FY2023.6

1. Average monthly churn rate (ARR of paying customers who left freee in a month / ARR at the end of the previous month) for the past 12 months.

44Revenue and Gross Profit Margin(1)(2)

Revenue(JPY MM)

FY2018.6

FY2019.6

FY2020.6

Gross Profit Margin(%)

FY2021.6

FY2022.6

FY2023.6

1. Revenue and gross profit margin for FY2022.6 are for Platform business only, excluding Shikaku Square sold on December 1, 2021.
2. freee Sign and Taxnote are consolidated from the fiscal year ended June 30, 2022.Mikatus and sweeep Inc. are consolidated from the fiscal year ended June 30, 2023.

45

Breakdown of SG&A (% of Revenue)

COGS(1)● IT Infrastructure costs● labor costs of customer support personel● expenses for amortization of software assets etc.
adj. R&D(1)(2)● labor costs of engineers involved in research anddevelopment etc.

adj. S&M(1)(3)● online advertising expenses for sales promotions● labor costs of sales personnel etc.

adj. G&A(1)(4)FY2018.6

FY2019.6

FY2020.6

FY2021.6

FY2022.6

FY2023.6● labor costs of corporate departments● other general and administrative expenses

1. Figures for FY2022.6 are for Platform business only, excluding Shikaku Square sold on December 1, 2021.
2. Research and Development. Total of labor costs of engineers involved in research and development and other research and development-related expenses, as well as allocated common expenses, etc.
3. Sales and Marketing. Total of advertising expenses for sales promotions, labor costs of sales personnel and other sales and marketing-related expense, as well as allocated common expenses, etc.
4. General and Administrative. Total of labor costs of corporate departments and other general and administrative expenses, as well as allocated common expenses, etc.

46

Long Term Financial ModelFY2018.6

FY2019.6

FY2020.6

FY2021.6

FY2022.6

FY2023.6

Long-term

71.7%

78.2%

77.4%

79.5%

80.7%

83.6%

80%-85%

adj. R&D(1)(2)% of Revenue

66.4%

35.9%

28.4%

25.6%

25.8%

35.7%

17%-20%adj. S&M(1)(3)% of Revenue

119.9%

78.3%

66.8%

58.8%

53.9%

69.4%

30%-35%

adj. G&A(1)(4)% of Revenue

23.7%

22.8%

19.7%

17.5%

17.7%

15.9%

8-10%

adj. OP Margin% of Revenue-138.4%-58.9%-37.5%-22.4%-16.8%-37.4%

20%-30%Gross Profit
Margin1. Figures for FY2022.6 are for Platform business only, excluding Shikaku Square sold on December 1, 2021.
2. Research and Development. Total of labor costs of engineers involved in research and development and other research and development-related expenses, as well as allocated common expenses, etc.
3. Sales and Marketing. Total of advertising expenses for sales promotions, labor costs of sales personnel and other sales and marketing-related expense, as well as allocated common expenses, etc.
4. General and Administrative. Total of labor costs of corporate departments and other general and administrative expenses, as well as allocated common expenses, etc.

47

Accelerate Hiring for Future Growth

Number of Full Time Employees (At the end of fiscal year)
1,600-1,750

1,299

916(2)
656(1)
355

388

FY2018.6

FY2019.6481

614

FY2020.6

FY2021.6835

FY2022.6

FY2023.6

FY2024.6

1. Figures include employees of Shikaku Square, which was sold in December 2021.
2. Figures include the number of employees of Mikatus, which was deemed consolidated as of June 30, 2022.

48

ESG

49

ESG
Contributing to Reducing
Small Businesses’
Environmental Impact● Providing various online services such as
freee Accounting and freee HR to help
small businesses to advance paperlessbusiness operations and reduce
unnecessary business travels

Developing a Sustainable
Organization● Working to build an environment thatemphasizes DEI(1) so that diverse people
can deliver outstanding performances● Ranked in the top 10 companies of “BestWorkplaces”(Medium-sized company
section), a ranking announced by Great
Place to Work(R) Institute Japan, for eight
consecutive years (2015 - 2022)

Disclosure on
Sustainability Website(2)● Disclosing the information on freee’s
sustainability initiatives and data on“Sustainability Website”● Continue to advance our ESG initiatives
with the aim of achieving a sustainable
society under our mission, “Empower Small
Businesses to Take Center Stage”

1. Diversity, Equity, and Inclusion
2. https://corp.freee.co.jp/sustainability/

50

Case Study51

Examples of Introduction of freee Accounting: Self-Employed
I have automated accounting work with freee Accounting to focus on principal work. I now use
freed-up time for communication with customers.
Mr. Keisuke Tanaka, a business owner● I feel much happier, much more excited when talking with customers or baking chiffon cake than when keeping books.
● So I just want to get accounting work done quickly. To do so, it would be better to use software to automate what canbe automated, and I use the tax filing function of freee Accounting to get tax filing done on the first day of the filing period. I
don’t want to spend much time on accounting, so I always think hard about how to do it with as little effort as possible.
● Once I decided to use freee Accounting, I decided to choose my others systems with “those that can be integrated withfreee Accounting.” This was because it would definitely make my operations easier. In this way, I set up my business
operations and systems centered on freee Accounting.

I didn’t know how to file registration forms when starting a business or how to file a tax return.
Now with freee Accounting, I can work on it anytime I want and get it done within the day.
Ms. Meru Tamaoki, Mori-no-Niji● When I decided to go self-employed, expense management was what I was most worried about, because I need torecord how much I spent on what, judge what can and cannot be expensed, and also keep books…
● Basically, when you start a business, you’d find it easy to manage revenue because you’d like to know how much you haveearned. On the other hand, expenses could pile up while you don’t realize it. So I wanted to accurately grasp expenses on my
own to make sure I wouldn’t get the feeling that my business is profitable when in fact it is in the red.
● There are many small items of expenses, so I find freee Accounting particularly helpful as it gives me a clear picture of
how much expenses were incurred for each month.

52

Examples of Introduction of freee Accounting: Corporations
Successfully streamlined operations and brought visibility to management by way of cloud
accounting
Ms. Tomoko Miyazaki, Representative Director and Chief Executive Manager, Jinya Co., Ltd.
● My husband and I inherited this hotel in 2009, when Jinya was posting annual revenue of 290 million yen but burdened withdebts of over 1 billion yen. To break that negative cycle, we launched basic turnaround efforts, striving to increase revenue
and reduce expenses, and also began to work to bring visibility to management.
● By introducing freee Accounting, we have streamlined our routine operations in accounting. As a result, accounting work, which
was four people including Senior Executive Manager, is now handled only by one part-time employee working four hours a day,three days a week.
● We’ve brought real-time visibility to our financial statements, including P/L and B/S. On non-business days, I often
travel for speaking engagements or go meet people from the hotel and other industries to exchange views. By using
freee, even when away on those trips, I can check performance data on the cloud at any time.

Central management led to significant reduction in work
Atrae, Inc.
● Originally, our company’s accounting was not directly linked to the actual accounting system. The original data for priceestimates, invoicing, and delivery information, order information, vouchers, attendance, payrolls, etc., was managed in Excel,
and figures were subsequently entered into the accounting system based on this data. This system was overly complex andconfusing, and we wanted to find a way to consolidate and integrate the management of this information. This is why
freee, being designed based on the concept of cloud ERP, was very appealing to us.
● After introducing freee HR and freee Accounting, we were able to consolidate our scattered and disconnected collectionof information, and now we’re able to aggregate all our information without any extra effort.

53

Examples of Introduction of freee Accounting: Corporations
Enabling smooth cooperation with subsidiaries
KDDI Corporation● We provide freee IDs to our subsidiaries as well. In the past, after we closed our accounts for the end of the fiscal
period, we had to go out of our way to create reports in Excel and show them to each company. However, withfreee, all we need to do is let the parties we are sharing information know that the period is finished, andeach company can see the same information on the same platform. The ability to quickly see updates in realtime and view detailed information on each point of note is very convenient.
● We’ve introduced freee Accounting at 11 group companies so far. We asked one of the companies that recently
introduced the system for their impressions, and they replied that their employees haven’t had any issues
concerning operations. The positioning of buttons and other UI features seem to have been well thought out.
Being able to ensure smooth operations like this is extremely important for employees working on the front lines.

Aiming to innovate accounting operation as a entire group
Nomura Securities CO., LTD., N-Village Co., Ltd.
● When we introduced freee at N-Village Co., Ltd., we immediately found the platform very user-friendly. freee is easy to use andtraining expenses are very low. Our employees find it simple and intuitive, and it is also easy for us to introduce freee tooutsourced contractors as a result.
● I’ve used freee myself in my capacity as CSO, and found the UI overwhelmingly superior to accounting software from othercompanies.
● Compared to other package accounting software, freee has very efficient functions such as automatically collecting transaction
data from bank accounts that are linked with freee Accounting and automatically sorting and categorizing transactions.

54

Examples of Introduction of freee Accounting: Corporations
Achieved real-time visibility of cash management and performance data with an eye to growthover the next 70 years
Chiyoda Rubber Co., Ltd.
● Before introducing freee Accounting, it took two to three weeks to put our accounting data together using accounting software,and then we sent it to an accountant and waited for additional two to three weeks to receive pro forma statements. All in all, we
had a time lag of one month to one and a half months before we could see the whole dataset. But after introducing freee, we
are now able to get pro forma statements in real time and take action immediately.
● By linking freee to our bank accounts, we can view the balances on freee and the balances of our bank accounts in real timeand also see them at a glance without logging in online banking systems of each bank. In addition, using freee, we can forecast
cash flows and develop a financing strategy based on it. We believe that going forward, we can take full advantage ofthat function.

55

Solid Positioning in Growing Enterprise Segments (Listed Companies)
東証
プライム・
スタンダードグロース
TOKYO PRO
Marketfreeeを利用し
IPO実施

56

Expansion of freee App Store

freee’s Functional
extension
Purchasing/
Payment

Repeat transaction/
Foreign currency

Management
analysis/visualization

Accounting support

Number of Apps Listed(1)
on freee App Store

161/Borrowing

POS・EC

Sales Management

Payment

Invoice/Evidence
Employee master/time tracking

1. As of March 31, 2023.

57

Others(Product Overview)58

freee Accounting● Service that covers not only financial accounting, but also accounts receivable/billing, invoicing, expensing, and workflow
functions● Enables gathering and visualization of necessary accounting information for both Self-Employed/Corporate users owing
to the functions above
1

Automatic Input Made More Efficient
Complete digitization of a colossal number of documents madepossible through OCR
Obtain data from financial institutions automatically and create
journal entries automatically2Integrated Cloud Accounting Software
Complete accounting, invoicing, accounts receivable/billing,
workflow, fixed assets, and each business report with one masterdata on freee Accounting

3

Analysis Leading to Smart Business Management
Possible to inspect analysis results of various angles andprogress reports of budget and actual management anytime,
anywhere in order to perform quick business decisions
59

freee HR● Service that enables frequent routine operations such as time tracking, payroll, and HR procedures to be efficient andautomatic● Drastic reduction in the burden of input/confirmation operations by both HR and employees by centrally managing
employee master files
1

Connecting Routine HR Operations
Complete routine operations occurring each month, fromobtaining employee information to issuing pay statements, solely
with freee

2Constantly Retain Latest Organization and
Personnel Information
Compatible with hiring and leaving procedures, changes topersonal information, and changes to organizational structure, thelatest employee information is continuously aggregated with freee

3Paperless HR with Electronic Synchronization
Create paperless operations via synchronization not only withfreee products, but also with government systems such as e-Tax
and eLTAX

60

freee Order Management● Service that enables customers to manage a comprehensive series of order management operations for each project incontracted business,from tracking status of business deals to managing deliveries of services after receiving and taking
orders1

Streamlining order management across the board
Centrally manages all operations with freee Order Management:
recording deals, receiving and accepting orders, outsourcing, providing
deliveries, and billing and paying. Structure allows customers to trackdata flow from upstream to downstream, providing access to desired
data at any point in time.

2

Tracking phase of deals for each project,
dropping task omissions to zero
Prevents omission of issuing invoices, etc., even when taking onlarge numbers of projects.

3

Simplifying the way to monitor sales
and profit reports for each project
Reports display forecast information for sales and profits before
finalization as accounting information. Enables both executives
and entire sales teams to monitor customer information related toprojects and the the possibility of receiving an order.
61

freee Tax Filing● Service that makes efficient tax filing viable through synchronizing data with freee Accounting and freee HR● Reduce the burden of necessary processing and procedures by simplifying employees’ annual corporate tax and year-end
tax adjustments and filings

1

Product Synchronization that Automatically Connects
Create tax filing documents by automatically synchronizing datafrom freee Accounting and freee HR
Achieved the industry’s first two-way accounting and tax filingsynchronization by automatically applying calculated results

2

Appropriate for a Wide Range of Tax Filing Operations
Compatible with corporate tax/income tax/year-end tax
adjustments and filings/asset depreciation
Designed to be easy to use for accounting firms as well as small
and medium-sized businesses

3

Electronic Tax Filing Made Simple
Compatible with both Windows/Mac
Complete paperless tax filing operations through freee Tax Filing62

freee Workload Management● Service that enables income and expenditure management for projects through managing item management, workload
management, and visualization of reports● Enables improved estimations and the reduction of unprofitable projects by reducing input workload operations, enablingincome and expenditure management, and visualization of profit ratios
1

Input Workload Linked to Actual Schedules
Enable quantitative data entry by synchronizing freee HR, freee
Time Tracking Plus, calendar, and other systems

2

Real Time Assignment Adjustment
Enable a suitable operating rate by aggregating assignment
schedules via the cloud and real-time management by visualizing
possible operational schedules

3

Detailed Income and Expenditure Analysis
Improve project management with real-time confirmation ofincome and expenditure progress on a per-project basis andacross multiple projects

63freee Employee Benefits● Service that supports management of the introduction of a company-rented housing system providing housing toemployees to post-introduction operations● Drastic reduction in introduction/management costs is made possible through creating regulations, which can be abarrier to introduction, designing internal operations, and reducing the burden of contract operations
1

Company Housing System Even for Small andMedium-Sized Companies
Cover overall company housing management operations fromintroduction to administration
Support provision of employee benefits with minimum workload2

Simple Operation of a Complex System
Contract workflow and confirmation of progress done online
Necessary operations and management necessary for acompany-rented housing system made easy to understand3

Smart Synchronization of Related Operations
Enable sustained operation without burdening the back office byconnecting with freee Accounting and freee HR64

freee Sign
● Online service that completes bothersome contract operations intuitively● Contract operations that used to take 30 minutes or more are reduced to as little as 5 minutes

1One-stop Contract Creation to Management
Complete contract operations from contract editing, creation,
conclusion, to management on the one product2

Seamless Operation of Contracts and Related
Operations
Synchronized with freee Accounting and freee Ordering
Reduce paper usage and workload by connecting contract
operations

3

Quick and Smooth Introduction
Intuitive design interface that does not require an operation manualAll plans for corporates include telephone support for customers
and contracted partners

65freee Ordering● Transaction platform that increases both client and contractor efficiency through the same service● One-stop solution for document creation, collection, exchanges with counterparties, and progress management stemmingfrom ordering operations

1

Ordering Communication Made Efficient
Complete ordering exchanges and document deliveries by
repeating requests and approvals between contractors and clients2

Central Management from Contracts to Invoices
Prevent contract update and collection omissions through unified
order status management
Smooth operation until contract completion with optional freee
Sign synchronization

3

Compliance with Various Legal Systems
Transactions made with freee Ordering are compliant with theElectronic Books Maintenance Act, while automatically generated
documents are compliant with the Subcontract Act

66

freee Invoice● Service that enables to issue invoices that meet the requirement of the Invoice System for free
● Enables to issue invoices easily with simply following and filling the forms

1

Comply with the requirements of the Invoice Systemand the Electronic Book Maintenance Act
Complies easily with the requirements which are difficult for conventional
practices using paper or spreadsheet software to comply with2

Prepare invoices easily
Enables to prepare documentations other than invoices, such as
quotations and delivery slips, using over 40 preset templates

3

Launched as a landing point to integrated cloud ERP
Expects customers to recognize the benefits of UI and UX of freee’s
products by introducing freee Invoice casually67sweeep● Service that compliant with the Invoice System for invoice receivable and electronic storage of all documents● Enables to automate receiving and saving invoices and journal entries

１ Great onboarding experience with minimized burden
Reduces the cost of manual initial setup by synchronizing data such as thecounterparty master data from freee Accounting
Designs a screen to manage invoice lists like a UI similar to that ofe-mail receiving software. Lowers learning costs during introduction
even for first-time users, and enable to construct stable internal
operations quickly

2

Automated input work for invoices with high-precision
AI-OCR
Utilizes AI-OCR with a reading accuracy of 98.5% to automatically input
journal entries and payment information from received invoices

3

Seamless integrated experience with freee Accounting
Unlike the API linkage between accounting software and invoice software,"invoice data" from sweeep can be viewed in freee Accounting as well as"journal entries," greatly reducing the burden of A/P management

68BUNDLE● Service that visualizes the SaaS accounts used by employees and automates inventory● Reducing workloads for joining and leaving companies, and transfers of employees contributes to higher efficiency, security

Visualize status of utilization by integrating employee
１and account information
By automatically linking employee data from HR softwares such as freee
HR with SaaS account information, visualize status of utilization
and unneeded accounts.

2

つばめ太郎

Reduce operational workload for joining, termination,transfers, and organizational restructuring by automation
Uses the integrated employee database to automate SaaS accountprovisioning and deprovisioning operations based on changes in
employee’s status (e.g. departments and job types) upon joining andleaving companies, and transfers of employees

3Strengthen integrated experience in freee’s HR
solutions
Covers a suite of processes by offering integrated experiences inoperations related to joining and termination as well in addition to existing
freee HR functions69

Pricing History - freee Accounting(1)Revision

For Self-employedStarter
JPY980/month
JPY9,800/annum

Starter
JPY980/month
JPY9,800/annum
Standard
JPY1,980/month
JPY19,800/annum
Premium
JPY3,980/month
JPY39,800/annum

2013.82016.5Service launch

RevisionStarter
JPY1,180/month
JPY11,760/annum
Standard
JPY2,380/month
JPY23,760/annum
Premium
JPY39,800/annum

2017.32018.72020.5

RevisionStarter
JPY1,480/month
JPY11,760/annum
Standard
JPY2,680/month
JPY23,760/annum
Premium
JPY39,800/annum

2022.122023.1Service launchStandard
JPY1,980/month
JPY19,800/annum

RevisionStandard
JPY1,980/month
JPY19,800/annum
Business
JPY3,980/month
JPY39,800/annum

For Corporates

RevisionLight
JPY1,980/month
JPY19,800/annum
Business
JPY3,980/month
JPY39,800/annum
Enterprise
Quoted Price

Revision

Revision

Minimum
JPY2,380/month
JPY23,760/annum
Basic
JPY4,780/month
JPY47,760/annum
Professional
JPY47,760/month
JPY477,600/annum
Enterprise
Quoted Price

Minimum
JPY2,680/month
JPY23,760/annum
Basic
JPY5,280/month
JPY47,760/annum
Professional
JPY47,760/month
JPY477,600/annum
Enterprise
Quoted Price

Note:
1. Monthly or annual payment only, does not include ID fee.

70Pricing History - freee HR(1)For Corporates

2014.10Service launchStandard
JPY1,980/month
JPY19,800/annum

2017.6

RevisionLight
JPY2,380/month
JPY23,760/annum
Business
JPY4,780/month
JPY47,760/annum

2019.10

Revision
Minimum
JPY 1,300/month
JPY12,960/annum
Basic
JPY2,980/month
JPY29,760/annum
Professional
JPY7,180/month
JPY71,760/annum
Enterprise
Quoted Price

Note:
1. With the plan revision in March 2023, pricing for freee HR were revised to ones without basic fees and changed to a plan for each ID
2. Available from the first 5 IDs. For monthly payment, the fee of the first 5 IDs is 1.3 times of the above rate.

2023.3

Revision
Minimum
ID fee JPY 400/month(2)Starter
ID fee JPY 600/month(2)Standard
ID fee JPY 800/month(2)Advance
ID fee JPY 1,100/month(2)71Pricing - freee Accounting(For Corporates)
Plan(1)Price(1)Monthly Payment

Features(1)Annual Payment

Financial
Statements

ExpenseManagement

BudgetingWorkflow

Internal
Controls

SupportEnterprise*Quoted price*Quoted price

Chat /
E-mail /Dedicated
Support Team

Professional● Base fee：JPY 47,760● ID fee: JPY 600(Free ID for up to 10
members)● Base fee: JPY 477,600● ID fee: JPY 6,000(Free ID for up to 10
members)

Chat /
E-mail /Telephone

Basic● Base fee: JPY 5,280● ID fee: JPY 400(Free ID for up to 3
members)● Base fee: JPY 47,760● ID fee: JPY 3,600(Free ID for up to 3
members)

Minimum● Base fee: JPY 2,680● ID fee: (Free ID for up to 3
members(2))● Base fee: JPY 23,760● ID fee: (Free ID for up to 3 members(2))

Chat /
E-mail /Telephone

Chat /
E-mail /1. As of the date of disclosure of this material. Listed prices are excluding tax. Further details of fees and features are on our website.
2. ID for more than 3 members is not available with this plan.

72

Pricing - freee Accounting(for Self-employed)Plan(1)Price(1)Monthly Payment

Premium*Annual payment only

Features(1)Annual Payment

Bookkeeping

Tax Return● Base fee: JPY 39,800● ID fee: JPY 3,600(Free ID for up to 3 members)

Cash Flow
Reports

ExpenseManagement

SupportChat / E-mail(Preferential
treatment)/
TelephoneStandard● Base fee: JPY 2,680● ID fee: JPY 400(Free ID for up to 3
members)● Base fee: JPY 23,760● ID fee: JPY 3,600(Free ID for up to 3
members)

Chat / E-mail(Preferential
treatment)

Starter● Base fee: JPY 1,480● ID fee: - (2)● Base fee: JPY 11,760● ID fee: - (2)Chat / E-mail1. As of the date of disclosure of this material. Listed prices are excluding tax. Further details of fees and features are on our website.
2. Only advisors authorized by freee may be added.

73

Pricing - freee HR
Plan(1)Price(1)Features(1)Payroll

Per MonthHR
Procedures

AttendanceManagement(2)

Advanced
Employee
Management (3)SupportChat /
E-mail /Telephone

Advanced●

ID fee: JPY 1,100

Standard●

ID fee: JPY 800(2)Chat /
E-mailStarter●

ID fee: JPY 600(2)Chat /
E-mailMinimum●

ID fee: JPY 400(2)Chat /
E-mail

1. As of the date of disclosure of this material. Listed prices are excluding tax. Further details of fees and features are on our website.
2. Available from the first 5 IDs. For monthly payment, the fee of the first 5 IDs is 1.3 times of the above rate.
3. Includes the workflow function for managers to approve employee requests for address changes, commuting requests, and other employee-related requests.

74Pricing - freee Sign
Plan(1)Price(1)Monthly Payment(2)Electronic Signature

Pro Plus● Base fee: JPY 144,000● ID fee: JPY 300 (Free ID
for up to 100 IDs)Pro

● Base fee: JPY 60,000● ID fee: JPY 500(Free ID for up to 20 IDs)

Light Plus

● Base fee: JPY 23,800● ID fee: JPY 1,000 (FreeID for up to 6 IDs)Light

● Base fee: JPY 5,980● ID fee: - (Free ID for up
to 1 ID(2))● JPY 200 per contract

Starter(For Self-employed)● Base fee: JPY 1,280● ID fee: ● (Free ID for up to 1 ID(2))● JPY 0 per contract(Up to 10 contracts permonth)● JPY 200 per contract

Features(1)No. ofTemplates
Registered

Unlimited

No. ofContracts
Transmitted

WorkflowAPI

Chat /
E-mail /Telephone

Unlimited(3)● JPY 200 per contract● JPY 200 per contract

Support

Unlimited

Chat /
E-mail /Telephone

Unlimited

Chat /
E-mail /Telephone

Unlimited

50 per month

Chat /
E-mail /Telephone10

10 per month

Chat /
E-mailUnlimited

Unlimited

1. As of the date of disclosure of this material. Listed prices are excluding tax. Further details of fees and features are on freee Sign’s website.
2. Also available with annual payment. Annual payment is free for the first month of subscription in the first year of the contract (not applicable to the Starter Plan).
3. API integration is available as an option (JPY 5,000 per month), not as a standard feature.

75

Pricing - Other Services
freee Order Management (1)freee A/R & A/P Management (1)Base fee : JPY 1,300 per monthBase fee : JPY 25,000 per month
MonthlyMonthly
ID fee : JPY 500 per month(Free ID for up to 20 members)

freee Expense Management (1)Monthly

ID fee : JPY 500 per monthfreee Time Tracking Plus
Monthly

ID fee : JPY 260 per month(Free ID for up to 1 member)Base fee : JPY 980 per month

Annual(1)

ID fee : JPY 200 per month(Free ID for up to 1 member)

ID fee : JPY 300 per month

1. As of the date of disclosure of this material. Listed prices are excluding tax. Further details of fees and features are on our websites.

76Pricing - Other Services
freee Employee Benefits (1)freee Workload Management (1)(2)Monthly

Base fee : JPY 4,980 per month

ID fee : JPY 1,800 per month
Monthly

AnnualID fee : JPY 2,300 per month(Free ID for up to 1 member)

ID fee : JPY 1,500 per monthfreee Tax Filing (for corporates)(1)
AnnualBase fee : JPY 24,800 per annum

Taxnote (1)(3)

Taxnote
Plus

Base fee : JPY 3,500 per annum

TaxnoteCloud

Base fee : JPY 600 per month

1. As of the date of disclosure of this material. Listed prices are excluding tax. Further details of fees and features are on our websites.
2. freee Project Management was renamed as freee Workload Management from April 2023.
3. Annual payment only.

77Disclaimer
This document has been prepared solely for the purpose of disclosing relevant information regarding freee K.K. (referred to herein as
the "Company", "we" or "us") and, depending on the context, its consolidated subsidiary. This document does not constitute an offer tosell or the solicitation of an offer to buy any security in the United States, Japan or any other jurisdiction.
This presentation material includes forward-looking statements that express expectations of future results. These forward-looking
statements include, but are not limited to, expressions such as “believe”, “anticipate”, “plan”, “develop a strategy”, “expect”, “project”,“forecast” or “have the potential” and other similar expressions that explain our future business activities, results, events andcircumstances. Forward-looking statements are based on the intentions of our management based on the information that is available
to them at the time of such statements. Therefore, these forward-looking statements are dependent on various risks and uncertainties,
and actual results may significantly differ from the results expressed or implied in the forward-looking statements. Accordingly, you
should not place undue reliance on the forward-looking statements. We are not under any obligation to change or correct theforward-looking statements according to new information, future events or other discoveries.
Any information pertaining to companies other than us or that was derived from any third party source identified in this presentationmaterial is cited from publicly-available information. We have not independently verified the accuracy or appropriateness of suchinformation and are not able to guarantee the accuracy of such information.

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