Becoming the Top
SaaS company in Japan
1Q FY12/2022 Business Results Briefing Material

Broadleaf Co., Ltd (3673)
May 11, 2022
Copyright©2022 Broadleaf Co.,Ltd. All rights reserved.

Contents

1 Outline of the Mid-Term Management Plan (2022-2028)
2 Overview of 1Q FY12/2022 Business Results
3 Results Forecasts for FY12/2022

4 Supplemental Information

Copyright©2022 Broadleaf Co.,Ltd. All rights reserved.

2

1 Outline of the Mid-Term Management Plan (2022-2028)

Copyright©2022 Broadleaf Co.,Ltd. All rights reserved.

3

Performance Plan for
Outline of the Mid-Term Management Plan
(2022-2028)
the Mid-Term Management Plan (2022-2028)
The Company views record-high performance in 2026 as a milestone.
Transition to recurring revenue will progress and revenue will continue to grow.
The Company aims to achieve operating margin of 40% and profit of 8 billion yen in 2028.
(Billions of yen)

FY2022

FY2023

FY2024FY2025

FY2026FY2027

FY2028

Revenue

12.3

14.7

18.5

22.0

25.5

29.0

32.5

Operating profit

-4.8

-2.7

1.0

3.3

6.7

10.0

13.0

Operating margin

-

-

5%

15%

25%

34%

40%

Profit attributable
To owners of the parent

-5.0

-2.9

0.6

2.0

4.2

6.3

8.0

Equity attributable toowners of the parent

20.0

17.5

18.0

Percentage ofequity attributable toowners of the parent

60%

50%

52%

Copyright©2022 Broadleaf Co.,Ltd. All rights reserved.

4Outline of the Mid-Term Management Plan
(2022-2028)

Revenue Plan by Service Categories

The Company plans to grow the new cloud services while shrinking packaged systems.
Out of cloud service, software service is expected to drive the revenue growth.

(Billions of yen)

FY2022

FY2023

FY2024FY2025

FY2026FY2027

FY2028

2.6

5.9

10.4

15.2

19.9

25.0

29.1

Software service

1.9

5.0

9.0

13.6

18.0

22.1

25.0

Marketplace

0.7

0.9

1.4

1.6

1.9

2.9

4.1

Packaged system

9.7

8.8

8.1

6.8

5.5

4.0

3.4

Software sale

3.2

2.8

3.0

3.0

2.9

2.5

2.2

Operation and support

6.5

6.0

5.2

3.8

2.7

1.5

1.2

12.3

14.7

18.5

22.0

25.5

29.0

32.5

Cloud service

Total

Copyright©2022 Broadleaf Co.,Ltd. All rights reserved.

5Outline of the Mid-Term Management Plan
(2022-2028)

Positioning as a SaaS company
The Company will become the top SaaS company in Japan.
Securities
Code

4443

Company Name

Marketcapitalization(Millions of yen)

Sansan, Inc.

139,553(Millions of yen)

Revenue
growth rate

16,184

21.1%

Revenue

The Company’s
revenue of software
service in 2026
18,000 million yen

3994

Money Forward, Inc.

192,970

15,632

38.1%

3923

RAKUS Co., Ltd.

237,574

15,387

32.6%

4478

freee K.K

178,943

10,258

48.8%

2492

Infomart
Corporation

130,494

9,835

12.1%

NOTE) Major SaaS providing companies that the Company refer to (made by the Company)
Calculation of market capitalization is based on closing price on May 9, 2022, revenue is based on the most recent fiscal year,and growth rate is compared to the previous fiscal year.
Copyright©2022 Broadleaf Co.,Ltd. All rights reserved.

6

Growth Strategy

Outline of the Mid-Term Management Plan
(2022-2028)

The Company will switch existing users whose contract of ".NS Series," a packaged
software, has expired, to ".c Series," a cloud-based software service, in order.
Measures (1)Cloudpenetration

Switch existing users (33,000 companies) to ".c Series"
The Company will switch users of ".NS Series," to ".c Series" during 2022-2028, inline with their expiration date.
Measures (2)Acquire new users
In addition to acquiring users from other companies, the Company will
become active in providing the products to service stations and car dealers.

Expansionof services

Measures (3)Increase the number of companies using marketplace-based services
The Company will increase the use rate of ordering platform for auto repair parts.
It will also increase the number of companies participating in the auto finance platform.

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7

Outline of the Mid-Term Management Plan
(2022-2028)

KPI

The Company established indicators that measure the penetration of ".c Series," which isthe core of software service sales.

Cloud installation status＝ Cloud conversion rate（Number of user-companies of cloud-based software÷ Total number of user-companies*）

End of 2024
Cloud conversion rate

Cloudpenetration

40%

Sales of standard version of ".c Series," a cloud-based software service **= Number of licenses × Average monthly license fee × (1 - Churn rate)
End of 2024

Number of licenses

24,000 licenses

Average monthly license fee

23,000 yen/month

Churn rate

Less than 1% (per year)* Four industries (auto maintenance shops , auto repair shops, auto parts dealers, and recycling shops) are included.
** Sales of products for specific major companies and service stations are excluded.
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8

Outline of the Mid-Term Management Plan
(2022-2028)

Progress (end of 1Q FY2022)
Cloud penetration has progressed as planned.
Acquisition of new users has progressed ahead of the plan.
Cloud installation status 【Progressed as planned】

Cloud conversion
rate

End of 1Q FY2022

Description

1.2%

・Switching of existing users began in earnest in thesecond half of March・Switching has a seasonal factor because it is linked to
the number of contracts 6 years ago (many deals are inJune and December)

Sales of the standard version of ".c Series" 【Progressed as planned】
End of 1Q FY2022

307 licenses
Number of licenses

Average monthly
license fee

Existing users 136 /New users 171

Description

・Number of licenses acquired from new users has
exceeded the plan.

・Regarding existing users, it has been installed fromsmall users as planned.
16,131yen/month
Existing 18,588yen/month ・There is greater demand than anticipated for new users
New 14,830yen/monthwith a small business scale, which lead to and increase
in installation of low-priced licenses.

Sales of ".c Series" for specific major clients【Progressed as planned】

・Prior installation started from 2020, which completed in 2021 as planned.
・Other deals are also planned to be installed in order.
NOTE）Churn rate is not disclosed at the timing due to insufficient number of data for calculation.
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9

2 Overview of 1Q FY12/2022 Business Results

Copyright©2022 Broadleaf Co.,Ltd. All rights reserved.

10Summary

Overview of FY12/2022 1Q Business Results

Even though actual business status is good, business results declined year-on-year since
the Company mainly sold ".c Series," a cloud-based software service, which is recorded
as monthly sales.
Actual business status".c Series" is highly evaluated in the market, and the pace of acquisition of new users is faster than expected.
Existing users are also switching to ".c Series" at an expected rate, so the actual business status is favorable.

Business results
Revenue decreased year-on-year.
From 2022, the Company limited the sales of ".NS Series," a packaged system with multi-year lumpsum sales, to particular industries that do not have a lineup of ".c Series," a cloud-based software
service.
Despite a decrease in SG & A and other expenses as a result of cost reductions, profit decreased yearon-year since it was not enough to offset the impact of the decrease in sales due to the cost structure ofhigh fixed cost ratio.

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11

Overview of Consolidated Business Results

Overview of FY12/2022 1Q Business Results

Sales decreased since the Company started provision of ".c Series," a cloud-based
software service, which is recorded as monthly sales.
(Millions of yen)

Revenue

FY2022
1Q

FY2021
1Q

YoY change

3,254

5,195

-1,941

1,195

1,530

-335

2,060

3,665

-1,605

SG&A expenses, etc.

2,797

2,993

-197

Operating profit (loss)

-737

672

-1,409Profit (loss) before tax

-646

669

-1,315

Profit (loss) attributable to owners of
the parent

-570

426

-996

-6.48 yen

4.86 yen-

Cost of sales
Gross profit

Basic earnings (losses) per share

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12

Overview of FY12/2022 1Q Business Results

Revenues by Service Categories

Regarding cloud service, recurring revenue increased due to acquisition of users andswitching to ".c Series." Meanwhile, revenue of packaged system declined since theCompany limited the sale to certain clients.
(Millions of yen)

Cloud service

FY2022
1Q

FY2021
1Q

YoYchangeFactors of increase/decrease

517

417

+100

Software service

347

247

+100

・Increase in the number of licenses ofsoftware service

Marketplace

170

170

-0

・Increase in the number of users
・Decrease in transaction volume ofrecycled parts market

Packaged system

2,737

4,778

-2,040Software sale

887

2,968

-2,081

1,850

1,809

+41

3,254

5,195

-1,941

Operation and support
Total

・Limited sale of ".NS Series," a packaged
software, to certain industries
・Increase in the number of ".NS Series" users

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13

Factors Behind Changes in Operating Profit

Overview of FY12/2022 1Q Business Results

Even though the Company reduced SG&A expenses, etc., operating profit decreased due tothe significant negative impact of decrease in sales.
(Millions of yen)

Decrease in
Otherspersonnel+92
expenses+77
Decrease in
Increase inadvertising
update cost for
expenses
service+46
infrastructure-18

Decrease incost of sales
+335

672

Cost of sales
・Increase in amortization expenses
of cloud services in association
with the release of cloud services
・Decrease in purchase of devices
SG&A expenses, etc.
FY2022
1Q

Increase in amortization
expenses of cloud services-80

FY2022
1Q

Decreasein sales-1,941-737

・Personnel expenses
Reduction in legal welfare
expenses which temporarily
ocurred in FY2021
・Advertising expenses
Stopped participating in large-scale
exhibitions

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14

Overview of FY12/2022 1Q Business Results

Balance Sheet Status

Current assets decreased due to limited sale of ".NS Series" by lease contracts, which isrecorded as multi-year lump-sum sales. Despite dividend payout and booking of loss, there
is no shortage in equity capital.
(Millions of yen)

FY2022End of 1Q

FY2021Year-end

YoY change

Factors of increase/decrease

Current assets

6,362

8,405

-2,043

Cash and cash equivalents -164
Operating and other receivables -1,882

Non-current assets

26,491

26,071+419

Intangible assets +409

32,853

34,476-1,623

6,944

7,512

-568

Operating and other payables -1,007
Short-term interest-bearing debts +1,188

723

850

-127

Long-term interest-bearing debts -38

Total liabilities

7,667

8,362

-695

Total equity

25,186

26,114-928

Total liabilities and equity

32,853

34,476-1,623

Total assets
Current liabilities
Non-current liabilities

Dividend payout -414
Loss -570

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15

3 Results Forecasts for FY12/2022

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16

Consolidated Results Forecasts（Compared to Beginning of the Term）

Results Forecasts for FY12/2022

In light of progress up to 1Q, the Company updated full-year forecast for cost of sales andSG&A expenses, etc. It also updated 1H forecast since part of lump-sum sales was recorded
ahead of plan.
(Millions of yen)

Revenue

FY2022Full-year Forecast
Beginning of
After revision
the term

FY2022
1H Forecast
Beginning of
After revision
the term

Difference

Difference

12,30012,300

-

6,000

5,800

+200

5,200

5,500

-300

2,300

2,600

-300

7,100

6,800

+300

3,700

3,200

+500

SG&A expenses, etc.

11,90011,600

+300

5,800

5,800

-

Operating profit (loss)-4,800-4,800--2,100-2,600+500

Profit (loss) before tax-4,800-4,800--2,000-2,600+600

Profit (loss) attributable toowners of the parent-5,000-5,000--2,100-2,700+600-56.62 yen-56.62 yen--23.80 yen-30.60 yen-

Cost of sales
Gross profit

Basic earnings (losses)
per share

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17

Results Forecasts for FY12/2022

Consolidated Results Forecasts (YoY)

Revenue will decrease since the Company will continue switching to ".c Series," a cloudbased software service, which is recorded as monthly sales.

(Millions of yen)

Revenue

FY2022Full-year
forecast

FY2021
Full-year

YoY change

FY2022
1H Forecast

FY2021
1H

YoY change

12,30020,652-8,352

6,000

9,937

-3,937

5,200

5,753

-553

2,300

2,867

-567

7,100

14,898-7,798

3,700

7,070

-3,370

SG&A expenses, etc.

11,90011,503

+397

5,800

5,827

-27

Operating profit (loss)-4,8003,395-8,195-2,1001,243-3,343

Profit (loss) before tax-4,8003,233-8,033-2,0001,239-3,239Profit (loss) attributable toowners of the parent-5,0002,173-7,173-2,100795-2,895-56.62 yen

24.72 yen-

-23.80 yen

9.05 yen-

Cost of sales
Gross profit

Basic earnings (losses)
per share

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18

1H Revenue Forecast by Service Categories(Compared to Beginning of the Term)

Results Forecasts for FY12/2022

1H forecast for packaged system has been updated since the software sale progressed aheadof the plan. No change to the full-year forecast.
FY2022 1H Forecast(Millions of yen)

Difference

After revision

Cloud service

1,050

1,050

-

Software service

710

710

-

Marketplace

340

340

-

4,950

4,750

+200

Software sale

1,330

1,130

+200

Operation and support

3,620

3,620

-

6,000

5,800

+200

Packaged system

Total

Beginning of the term

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19

Results Forecasts for FY12/2022

Revenue Forecast by Service Categories (YoY)

Revenue growth of “Software service” will accelerate in the second half of FY12/2022 since
the monthly sales will grow steadily as the number of deals increase in the second half.

(Millions of yen)

Cloud service

FY2022Full-year
forecast

FY2021
Full-year

YoY change

FY2022
1H Forecast

FY2021
1H

YoY change

2,570

1,791

+779

1,050

847

+203

1,860

1,090

+770

710

503

+207

Marketplace

710

701

+9

340

345

-5

Packaged system

9,730

18,860-9,130

4,950

9,090

-4,140Software sale

2,500

11,620-9,120

1,330

5,486

-4,156

Operation and support

7,230

7,240

-10

3,620

3,604

+16

12,30020,652-8,352

6,000

9,937

-3,937

Software service

Total

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20

Factors Behind Changes in Operating Profit

Results Forecasts for FY12/2022

Decrease in cost of sales will be limited due to increase in amortization expenses of cloud services.
Increase in
Decrease inpersonnel
expensescost of sales
+108
+553
3,395
Increase in
Increase in
update cost foradvertising
serviceexpenses
infrastructure-67-104
Increase in amortization
expenses of cloud services-362(Millions of yen)

Cost of sales

・Increase in amortization expenses
of cloud services in association
with the release of cloud services

Others-333

・Decrease in purchase of devices

FY2022
Forecast

FY2021

SG&A expenses, etc.
・Update of service infrastructure
Strengthening and expansion ofoperational infrastructure forthe cloud-based software, etc.
・Personnel expenses
Decrease in legal welfare
expenses which temporarily
occurred in FY2021

Decrease in sales -4,800-8,352

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21

Results Forecasts for FY12/2022

Dividend Forecast

In light of the progress of the mid-term management plan and the status of retained
earnings, the Company plans to announce forecasts when it becomes possible to makereasonable calculations.

Dividends per share(Yen)

FY2022

FY2021

Interim dividend

Undecided

4.00

Year-end dividend

Undecided

4.70

Undecided

8.70

-

35.2%

Annual dividend
Consolidated
dividend payout ratio

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22

4 Supplemental Information

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23

Description of Revenue by Service Categories

Category

Supplemental Information

Description

Cloud service
Software service

・".c Series," a cloud-base software service
・Software services with subscription contracts, etc.

Marketplace・Ordering platform for auto repair parts, etc.

Packaged system
Software sale・Sale of ".NS Series," a packaged system, with lease contracts
・Sale of "OTRS," a work analysis software

Operation and support

・Ancillary services of ".NS Series"

Copyright©2022 Broadleaf Co.,Ltd. All rights reserved.

24Supplemental Information

Revenue by Service Categories (2021)(Millions of yen)

Cloud service

FY2021
1Q

FY2021
1H

FY2021
Cumulative 3Q

FY2021
Full-year

417

847

1,302

1,791

Software service

247

503

778

1,090

Marketplace

170

345

524

701

Package system sale

4,778

9,090

13,87918,860Software sale

2,968

5,486

8,458

11,620Operation and support

1,809

3,604

5,420

7,240

5,195

9,937

15,181

20,652Total

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25

Supplemental Information

Fee System (Cloud-based Software Service)

Company license fee
Essential foreach company+

Job license fee(role license)
Add licenses fornecessary job functions

Basic (Company)

Employee ID fee
Allocated to each employee
ID

Management

Support service fee

ID

Data usage fee

Mechanics

ID
ID

Front desk

・・+
Option usage fee
Slips issuance (based on thenumber of slips) and other fees

ID

ID

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26

Supplemental Information

Company Profile

Company nameBroadleaf Co., Ltd

Representative

Kenji Oyama, Representative Director and President

Listed on

Listed on Prime Market of Tokyo Stock Exchange (3673)

SectorInformation and telecommunication

Founded/Established December 2005/September 2009
Capital stock

7.148 billion yen (consolidated)

Fiscal year

From January 1 to December 31

Business outline

Using proprietary "Broadleaf Cloud Platform" as its infrastructure, the Company
provides SaaS cloud services, marketplace-type services, and partner programs thatenable functional and service collaboration with various players.
These services are utilized as IT solutions that lead environmental changes, which are
occurring in various industries including mobility industry, to business opportunities.

Head office location Floor 8, Glasscube Shinagawa, 4-13-14 Higashi-Shinagawa, Shinagawa-ku, Tokyo
Domestic offices

28 business offices and 3 development centers in Japan

Major subsidiaries Tajima Inc.

Copyright©2022 Broadleaf Co.,Ltd. All rights reserved.

27

Disclaimer

The results forecasts and forward-looking statements contained in this document are forecasts made by theCompany based on information available at the time of preparation of the document, so they include potential
risks and uncertainties.
Therefore, please be aware that actual results may differ from these forecasts due to various factors.

Contact Information
Broadleaf Co., Ltd
Corporate Communications Deparmtnent

E-mail: bl-ir@broadleaf.co.jp

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28