Feb. 14 2019

3Q FY2019 Presentation Material

3Q FY12/2019

Business Results Briefing

Broadleaf Co., Ltd.
TSE 1st Section: 3673

株式会社ブロードリーフ［東一 3673］
Nov. 1 2019

Copyright ©2019 Broadleaf Co., Ltd. All rights Reserved.

Contents

1. Overview of 3Q Business Results ‥‥‥01

2. Results Forecasts‥‥‥‥‥‥ 09

3. Topics‥‥‥‥‥‥ 14

Appendix: Corporate Profile, Revenue Category, etc.
Note: Figures smaller than the units of display are rounded off.

Copyright ©2019 Broadleaf Co., Ltd. All rights Reserved.

01

Chapter 1

Overview of 3Q Business Results

Copyright ©2019 Broadleaf Co., Ltd. All rights Reserved.

Chapter 1 Overview of 3Q Business Results

02

PL Summary (Consolidated, IFRS)
Achieved an increase in both revenue and profits, and made steady progress toward achieving the fullyear forecasts.
(¥ million)

FY20193Q

FY20183Q

YoY change

YoY (Ratio)

Revenue

16,84015,104+1,737+11.5%

Operating profit

3,558

2,706

+852

+31.5%

Profit

2,319

1,745

+574

+32.9%

Profit per share*¥26.55¥19.94--* Calculated assuming that the stock split (1:2) which took effect on April 1, 2018 was carried out from the beginning of FY12/2018.

Copyright ©2019 Broadleaf Co., Ltd. All rights Reserved.

Chapter 1 Overview of 3Q Business Results

03

Revenue by Category (Consolidated, IFRS)Revenue rose in both platforms and applications.
(¥ million)

Platforms
Basic
EDI/Payment settlement
SupportOthersApplications
By industry
OTRS
OthersTotal

FY2019
3Q
7,579
5,684
689
1,099
107
9,261
7,788
282
1,192
16,840FY2018
3Q
6,879
5,118
692
979
91
8,225
7,202
295
728
15,104

YoY change
+700
+566
-3
+120
+16
+1,037
+586
-13
+464
+1,737

YoY (Ratio)+10.2%+11.1%-0.4%+12.3%+17.7%+12.6%+8.1%-4.5%+63.8%+11.5%

Copyright ©2019 Broadleaf Co., Ltd. All rights Reserved.

Chapter 1 Overview of 3Q Business Results

04

Breakdown of Platform Sales (Consolidated, IFRS)Sales were driven by increases in the number of platform users and sales of basic application functions.
(¥ million)

Basic
PaaS/SaaS
IaaS
EDI/Payment settlement
PSF*
BLP/CPT*
SupportSupport service
Provision of consumables
OthersTotal platform sales

FY2019
3Q
5,684
4,116
1,568
689
454
235
1,099
517
582
107
7,579

* PSF: Settlement agency service fee in the recycled parts market

FY20183Q

BLP: BL Parts Order System use fee

5,118
3,654
1,464
692
467
224
979
456
523
91
6,879

YoY change
+566
+462
+104
-3
-13
+11
+120
+61
+59
+16
+700

YoY (Ratio)+11.1%+12.6%
+7.1%
-0.4%
-2.8%
+4.7%
+12.3%+13.4%+11.3%+17.7%+10.2%

CPT: CarpodTab use fee
Copyright ©2019 Broadleaf Co., Ltd. All rights Reserved.

Chapter 1 Overview of 3Q Business Results

05

Breakdown of Application Sales (Consolidated, IFRS)Sales by industry and in the Others category increased, while sales from OTRS decreased due to theimpact of US-China relations.
(¥ million)

FY20183Q

FY20193Q

By industry

7,788

7,202

YoY change+586

YoY (Ratio)+8.1%

Automotive

6,598

6,110

+488

+8.0%

Non-automotive

1,189

1,092

+98

+8.9%

OTRS

282

295

-13

-4.5%

Others

1,192

728

+464

+63.8%

Total application sales

9,261

8,225

+1,037+12.6%

Copyright ©2019 Broadleaf Co., Ltd. All rights Reserved.

Chapter 1 Overview of 3Q Business Results

06

Breakdown of Increase/Decrease in Operating Profit (Consolidated, IFRS)
Operating profit increased due to a rise in sales, which offset the increased burden of
cloud-related depreciation expenses.

(¥ million)

A rise in sales+1,737

Operating profit
2,706+ shows the factor for an increasein operating profit from the year-ago level- shows the factor for a decreasein operating profit from the year-ago level

A fall inpersonnel
expenses+27
A rise incost of sales-856

Operating profit
3,558
A rise inadvertisingexpenses
-17

Other
-39

An increase in software
depreciation-158

FY20183Q

FY20193Q
Copyright ©2019 Broadleaf Co., Ltd. All rights Reserved.

Chapter 1 Overview of 3Q Business Results

07

BS Summary (Consolidated, IFRS)Intangible assets increased due to investments in software development.
(¥ million)

Current assets

End of
FY2019End of 3Q FY12/2018
10,6197,299

ChangeMain factors for increase/decrease
Decrease in cash and deposits -3,699-3,319Non-current assets

21,63818,794+2,844

Total assets

28,937

29,413-475

Current liabilities

5,989

7,913

-1,924626

466

Total liabilities

6,615

8,379

-1,764

Total shareholders’ equity

22,322

21,033+1,289Total liabilities andshareholders’ equity

28,937

29,413-475

Non-current liabilities

Increase in property, plant and equipment +686
Increase in intangible assets +1,599

Decrease in income taxes -666

+159 Increase in long-term interest-bearing debt +188

Recognition of profit +2,319

Copyright ©2019 Broadleaf Co., Ltd. All rights Reserved.

Chapter 1 Overview of 3Q Business Results

08

CF Summary (Consolidated, IFRS)
Investments in growth areas, such as software development, were made more aggressively.
(¥ million)

FY2019FY2018

3Q

3Q

YoY change

Main factors for increase/decrease

CF from operating activities

1,376

2,132

-756

Increase in income taxes paid -737

CF from investing activities-2,961-1,490-1,471

Increase in purchase of intangible assets -813

CF from financing activities-2,112-2,234

+122

-

FCF

-1,586-641-2,227-

Cash and cash equivalents

1,928

4,373

-2,445-

Copyright ©2019 Broadleaf Co., Ltd. All rights Reserved.

09

Chapter 2

Results Forecasts

Copyright ©2019 Broadleaf Co., Ltd. All rights Reserved.

Chapter 2 Results Forecasts

10

Results Forecasts (Consolidated, IFRS)The full-year revenue forecast was revised upward, taking progress during the first nine-month period into
consideration. No changes were made to profits.
(¥ million)

FY2019FY2018FY2019FY2018Full-year
forecasts

Full-year

YoYchangeYoY(Ratio)Revenue

22,30021,285+1,015

+4.8%

5,460

6,182

-722

-11.7%

Operating profit

4,500

4,115

+385

+9.4%

942

1,409

-466

-33.1%

Profit

2,800

2,656

+144

+5.4%

481

910

-430

-47.2%

Profit per share¥32.07¥30.36

-

-

-

-

-

ｰ

4Q(Oct-Dec)
4Q(Oct-Dec)
Forecasts

YoYchangeYoY(Ratio)Copyright ©2019 Broadleaf Co., Ltd. All rights Reserved.

Chapter 2 Results Forecasts

11

Revenue Forecasts by Category (Consolidated, IFRS)Revenue categories were partially changed in consideration of progress.
(¥ million)

Platforms
Basic
EDI/Payment settlement
SupportOthersApplications
By industry
OTRS
OthersTotal

FY2019FY2018FY2019Full-year
forecasts

Full-year

YoYchangeYoY(Ratio)10,000
7,500
940
1,420
140
12,30010,400400
1,500
22,300

9,543
7,175
935
1,314
118
11,742
10,173391
1,178
21,285

+457
+325
+5
+106
+22
+558
+227
+9
+322
+1,015

+4.8%
+4.5%
+0.5%
+8.1%
+18.2%
+4.8%
+2.2%
+2.4%
+27.3%+4.8%

FY20184Q(Oct-Dec)
4Q(Oct-Dec)
Forecasts

2,421
1,816
251
321
33
3,039
2,612
118
308
5,460

2,664
2,058
244
335
27
3,517
2,972
96
450
6,182

YoY
change

-243
-242
+7
-14
+5
-479
-359
+23
-142
-722

YoY
(Ratio)-9.1%-11.8%+3.0%-4.2%+19.8%-13.6%-12.1%+23.8%-31.6%-11.7%

Copyright ©2019 Broadleaf Co., Ltd. All rights Reserved.

Chapter 2 Results Forecasts

12

Breakdown of Increase/Decrease in Full-year Operating Profit(Consolidated, IFRS)
Increases in purchases and the burden of software depreciation were offset by a reduction in general
expenses, among other measures.

(¥ million)

A rise in sales+1,015+ shows the factor for an increasein operating profit from the year-ago level- shows the factor for a decreasein operating profit from the year-ago level

A fall inpersonnel
expenses+36

Operating profit
4,115

A rise in costof sales-648
Includes an increase insoftware depreciation-198

FY2018

Other+40

Operatingprofit4,500

A rise inadvertisingexpenses-58

FY2019(forecast)
Copyright ©2019 Broadleaf Co., Ltd. All rights Reserved.

Chapter 2 Results Forecasts

13

Dividends
The year-end dividend forecast remains unchanged.

¥11.00(50.4%)
Year-end

Interim

¥5.50

¥5.50

FY2017*¥13.00(40.5%)¥12.00(39.5%)
Year-end¥6.50

Interim¥5.50

FY2018Year-end¥6.50(Forecast)Interim¥6.50(Fixed)FY2019* Amount after adjustment for the stock split (1:2), which took effect on April 1, 2018
Copyright ©2019 Broadleaf Co., Ltd. All rights Reserved.

14

Chapter 3

TopicsCopyright ©2019 Broadleaf Co., Ltd. All rights Reserved.

Chapter 3 Topics

Initiatives for Acceleration of Development
and Commercialization of Services Utilizing Advanced Technologies

15

Establishment of the Advanced technology development department
as a new organization under the direct supervision of the president (CEO)The Advanced technology development department was established on October 1, 2019 as an organization under the directsupervision of the president for the purpose of amalgamating the technologies and expertise owned by the Broadleaf group
and accelerating the creation of new businesses and services.
With the placement of 25 persons who have a high level of professional and technological knowledge of AI, Blockchain and
5G, among other technologies, the department will facilitate the development of basic platforms and new services, and will
aim to commercialize them as soon as possible.

President (CEO)Direct supervision
Efforts to expedite decision-making

Development/businessplanning departments

Directcollaboration

Advanced technology
development department

Efforts to expedite implementation of services

Cooperationin research/development

Outside partners

Copyright ©2019 Broadleaf Co., Ltd. All rights Reserved.

Chapter 3 Topics

16

Expansion into New Mobility/MaaS Areas
Acquisition of shares in Zenmov Inc. (conversion into an equity-method affiliated company)

The company was established by core members of a demonstration project implemented by NEDO* in Manila, the Republic of
the Philippines. It will commence operation for the purpose of popularizing short-distance public transportation systems acrossSoutheast Asia, featuring the combination of short-distance electric mobility and operation control systems utilizing
technologies such as AI and IoT. (Part of the system will be released by the end of the year.)■Efforts to establish short-distance public transportation systems across Southeast Asia
✔ Short-distance transportation services featuring a combination of electric vehicles and IT<Overview of the investee company>✔ Operation styles can be modified flexibly according to travel demand.
✔ The services alleviate traffic jams and contribute to reducing air pollution.
During peak hours

During off-peak hours

Name: Zenmov Inc.

Operation of train services
without using railways

Operation of autonomous
train services* New Energy and Industrial Technology Development Organization

Operation of on-demand
train services

Representative

Sumio Tanaka

Business outline

Planning, development, manufacture and sale of smart mobility
systems

Location

Tokyo

Capital2,000,000 yen (October 20, 2019)

Investment amount

99,975,000 yen

Type of stock acquired Preferential stock, stock acquisition rights requiring payments(J-kiss)
Copyright ©2019 Broadleaf Co., Ltd. All rights Reserved.

17

Appendix

Corporate Profile, Revenue Category, etc.

Copyright ©2019 Broadleaf Co., Ltd. All rights Reserved.

Appendix

18

Corporate Profile
Corporate Name

Broadleaf Co., Ltd.

Representative

Kenji Oyama

Listed on

Listed on the First Section of the Tokyo Stock Exchange on March 22, 2013 (3673)

Founded/Established

December 2005/September 2009

Capital StockJPY 7,148 million (consolidated)

Business Outline

Provision of corporate-use IT services designed from originally developed platforms.
The Company offers business applications mainly for the automotive aftermarket as well as
many types of services such as the provision of infrastructure for trades/payments among
platform participants and the analysis of automotive-related big data. In addition, looking
ahead to the evolution of the mobility industry going forward, it has been conducting surveys
and research for the commercialization of advanced technologies.

Head Office Address

Floor 8, Glass Cube Shinagawa, 4-13-14 Higashi-Shinagawa, Shinagawa-ku, Tokyo

Sales Offices

29 offices in Japan

Development Centers

3 centers in Japan (Sapporo, Tokyo and Fukuoka)

Copyright ©2019 Broadleaf Co., Ltd. All rights Reserved.

Appendix

19

Explanation of Revenue Category
Classification

Detailed businesses

Major category Medium category Medium category- Provision of applications (on a monthly fee basis)

PaaS/SaaS
Basic- Provision of databases for applications (information on automotive parts, vehicles and indexes, data on transportation means, dataon tourism spots, etc.)- Provision of basic application functions and middleware

Platforms

EDI/
Payment
settlement

Support

IaaS- Provision of network servers required for the use of applications

PSF- Provision of settlement agency services for “Parts Station NET,” a network specialized in the transaction of automotive recycled
parts- Provision of an electronic system “BL Parts Order System” for receiving/placing orders for automotive parts

BLP/CPT- Provision of tablet-type operation terminals “CarpodTab” mainly for automotive maintenance companies

Maintenance- Provision of support and hardware maintenance services for clients in varieties of industries

Provision ofConsumables- Sale of exclusive forms and OA supply goods

Others- Analysis, processing and provision of a large amount of accumulated anonymization data collected from clients, etc.
- Sale of applications in the By industry category (excluding basic functions)

By industry
Applications(Automotive category: Auto repair/maintenance shops, bodywork suppliers, sales companies, component suppliers, glass productsuppliers, electrical component suppliers, recycling companies, etc.)(Non-automotive category: Machine tool suppliers, mobile phone sales shops, travel agencies, sightseeing bus operators, etc.)

OTRS- Sale of OTRS, operation analysis/optimization software

Others- Sale of PC bodies and ancillary devices such as printers

Copyright ©2019 Broadleaf Co., Ltd. All rights Reserved.

Disclaimer
Results forecasts and future predictions provided in this document are theCompany’s judgment based on the information available as of the time of
preparation of the document and contain potential risks and uncertainties.
Accordingly, please understand that the actual results may differ from the results
forecasts provided here.

[Contact Information]
Broadleaf Co., Ltd.
Corporate Communications (IR/PR) Department
E-Mail: broadleaf-ir@broadleaf.co.jp
Copyright ©2019 Broadleaf Co., Ltd. All rights Reserved.