Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

Contents
1.

Overview of FY12/2019 Business Results

2.

Key Strategies for 2020-21

3.

Results Forecasts for FY12/2020

4.

‥‥‥‥‥‥ 02‥‥‥‥‥‥ 10‥‥‥‥‥‥ 19

Reference‥‥‥‥‥‥ 24

Appendix: Corporate Profile, Revenue Category

Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

1

Contents
1. Overview of FY12/2019 Business Results
2.

Key Strategies for 2020-21

3.

Results Forecasts for FY12/2020

4.

Reference
Appendix: Corporate Profile, Revenue Category

Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

2

Chapter 1

PL Summary（Consolidated, IFRS）

FY12/2019 Business Results Briefing

Sales and profits increased for the third consecutive year,
both revenue and operating profit achieved a record high.
（¥ million）

FY2019FY2018YoY change YoY(ratio)

Revenue

22,586

21,285+1,301+6.1%

Operating profit

4,525

4,115

+411

+10.0%

Profit before tax

4,486

4,105

+380

+9.3%

Profit attributable to ownersof parent

3,093

2,656

+437

+16.5%

Basic earnings per share¥35.40¥30.36*--* Calculated assuming that the stock split (1:2) which took effect on April 1, 2018 was carried out at the beginning of FY12/2018.

Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

3

Revenue by Category（Consolidated, IFRS）

Chapter 1

FY12/2019 Business Results Briefing

Sales of platforms basic increased due to rise in the number of users,
sales of applications by industries went well.
（¥ million）
Platforms

FY2019FY2018YoY change YoY(ratio)

10,192

9,543

+649

+6.8%

7,654

7,175

+479

+6.7%

920

935

-16

-1.7%

Support

1,478

1,314

+164

+12.5%

Others

140

118

+22

+18.4%

Applications

12,394

11,742

+652

+5.6%

10,448

10,173

+275

+2.7%

OTRS

338

391

-53

-13.5%

Others

1,608

1,178

+430

+36.5%

22,586

21,285+1,301

+6.1%

Basic
EDI/Payment settlement

By industry

Total

Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

4

Chapter 1

Breakdown of Platform Sales（Consolidated, IFRS） FY12/2019 Business Results Briefing

Basic went well reflecting application sales, maintenance contract ratio improved,
PSF struggled due to market factors.
FY2019（¥ million）
Basic

FY2018YoY change YoY(ratio)

7,654

7,175

+479

+6.7%

5,542

5,206

+336

+6.5%

lump-sum

2,735

2,464

+270

+11.0%

monthly

2,807

2,742

+66

+2.4%

2,113

1,970

+143

+7.3%

920

935

-16

-1.7%

PSF *

603

634

-31

-4.9%

BLP/CPT *

317

301

+16

+5.2%

1,478

1,314

+164

+12.5%

Support service

708

601

+107

+17.8%

Provision of consumables

770

713

+57

+8.0%

140

118

+22

+18.4%

10,192

9,543

+649

+6.8%

PaaS/SaaS

IaaS
EDI / Payment settlement

SupportOthersTotal platform sales* [PSF] settlement agency fee for recycled parts transaction market

Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

[BLP] Usage fee for “BL Parts Order System”[CPT] Usage fee for ”CarpodTab”

5Chapter 1

Breakdown of Application Sales (Consolidated, IFRS) FY12/2019 Business Results Briefing

Acquisition of new customers went well mainly in the automotive sector,
OTRS struggled due to macro economic factors.
（¥ million）
By industry

FY2019FY2018YoY change YoY(ratio)

10,448

10,173

+275

+2.7%

Automotive

8,874

8,757

+117

+1.3%

Non-automotive

1,574

1,416

+157

+11.1%

OTRS

338

391

-53

-13.5%

Others

1,608

1,178

+430

+36.5%

12,394

11,742

+652

+5.6%

Total application sales

Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

6

Chapter 1

Breakdown of Operating Profit (Consolidated, IFRS)FY12/2019 Business Results Briefing

Significant rise in sales offset the increased burden of cloud-related
amortization expenses.
（¥ million）

Increase insales+1,301+ 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

Decrease inpersonnel
expenses+90
Operating
Profit4,115

Increase incost of sales-942

Decrease in
R&D expenses+96
Increase inadvertisingexpenses-21

Operating
Profit4,525
Others-114

Increase in amortizationof cloud software -188

FY2018

Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

FY20197

Chapter 1

BS Summary（Consolidated, IFRS）

FY12/2019 Business Results Briefing

Intangible assets increased due to investments in cloud development.

（¥ million）
Current assets
Non-current assets

FY20197,987

FY2018
10,619YoYchangeMain factors forincrease/decrease-2,632 Decrease in cash and deposits -2,593
Increase in property, plant andequipment +1,584

23,702

18,794+4,907

31,68929,413+2,276

Current liabilities

7,100

7,913

-813

Decrease in income taxes -349

Non-current liabilities

1,369

466

+903

Increase in long-term interestbearing debt +849

8,469

8,379

+89

Total assets

Total liabilities
Total equity
Total liabilities and equity

Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

23,22021,033+2,186

31,68929,413+2,276

Increase in intangible assets +2,264

Recognition of profit +3,093
Decline due to dividend payout 1,136

8

Chapter 1

CF Summary（Consolidated, IFRS）

FY12/2019 Business Results Briefing

Invested aggressively into growth areas, such as cloud software development.

（¥ million）

FY2019FY2018YoYchangeMain factors forincrease/decrease

CF from operating activities

3,762

4,566

-804

Increase in income taxes paid -735

CF from investing activities-3,990-2,496-1,494

Acquisition of intangible assets -866
Acquisition of investment -994

CF from financing activities-2,366-2,409

+43

FCF

-228

2,070

-2,298Cash and cash equivalents

3,034

5,627

-2,593Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

9

Contents
1.

Overview of FY12/2019 Business Results

2. Key Strategies for 2020-21
3.

Results Forecasts for FY12/2020

4.

Reference
Appendix: Corporate Profile, Revenue Category

Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

10Chapter 2

Impacts of Changes in the External Environment

Key Strategies for 2020-21

Demand for maintenance is expected to increase due to the evolution of vehicles and diversification brought by CASE,
which Broadleaf considers as growth opportunities.

Changes in themacro environment

Changes in the automotive aftermarket

Evolution of vehicles
Increase in the
trading volumeof repair parts
Increasing diversificationof vehicle usage

Declining working-age
population

Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

➢ Diversification of sensors: The number of areas subject toinspection and frequency of inspection are expected to rise.
➢ Increase in the number of corporate vehicles: The frequency of
automobile inspection is expected to rise.
➢ Increase in the operation rate: Replacements of worn parts are
expected to rise sharply.
➢ Decrease in the number of vehicles owned by individuals

Implementationof more active
investments➢ Increase in burdens for securing human resources: Active
utilization of IT to improve production efficiency➢ Decline in the number of maintenance shops due to mergers

11Chapter 2

Growth Bases and Priority Areas

Key Strategies for 2020-21

Work to further increase the number of maintenance shops as users through cloud migration as a trigger,
and aim to expand the usage of the Company’s electronic trading platform in the repair parts market.

Growth base(Core competence)

Migration to
cloud-based business software
2020 ~

Expansion of the usage of theelectronic trading platform
2021 ~

Maintenance shops
Customer base
Cloud migration

Electronic trading platform

Software

Auto parts dealers
Database
Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

Increase in users(maintenance shops)

Auto parts recycling
shops
Repair parts market
12Chapter 2

Key Strategies for 2020-21

Key Strategies for 2020-21

Facilitate cloud migration in the domestic automotive aftermarket to expand the usage of the electronic trading platform. In
addition, proactively expand into new areas, such as MaaS.

Key strategies➢ Strategy No. 1 Strategic Offering of Products by Segment (Maintenance shops)

Areas of the automotive
aftermarket industry➢ Strategy No. 2 Strategic Introduction of Third-Party Programs➢ Strategy No. 3 Strategic Market Launch of Cloud-based Products

New areas such as MaaS

Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

➢ Strategy No. 4 Global Development of the “Broadleaf Cloud Platform”

13Chapter 2

Strategy No. 1 Strategic Offering of Products by Segment (Maintenance)

Key Strategies for 2020-21

Increase the number of users by offering cloud-based products to popularize the electronic trading platform as soon as
possible and secure the top line by continuing to sell existing products.

Segment (maintenance shops)
Automobile inspection
shop chains, etc.

Maintenance shops(shops that have not
yet adopted software)

Service stations (SS)

Medium- to large-scale
maintenance shops(Number of IDs)
3,000 (companies)×10 or more (persons)Products

Sales

Advanced version of cloud-based Offer as an add-on forbusiness software (.c)
individual demand(Number of IDs)

Basic version of cloud-based
business software (.c)

Focus on online sales(Number of IDs)

SS version of cloud-based
business software (.c)

Approach petroleum
distributors and other large
companies(Number of licenses*)

Existing client server-typebusiness software (.NS)

Focus on replacing
competitors’ products forusers as well.

up to 10,000 (companies) ×1 (person)

up to 30,000 (shops) ×1 (person)

50,000 (companies) ×1.5 (bases)* Usage rights valid for a maximum of 6 years

Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

14

Strategy No. 2 Strategic Introduction of Third-Party Programs

Chapter 2

Key Strategies for 2020-21

Provide programs to ensure that add-on vendors can develop modules with additional functions more easily, and also offer
them as an integrated ERP by leveraging linkage to cloud-based accounting software and business management tools, etc.

.c series

Add-onModule withbasic
functionality
SDK/API

Module with additional functions

Users of the .c series

Add-on vendors(System development company)

Integrated
ERP

AI
Database

Broadleaf
Cloud
Platform

Synchronization of functions and data

Users of the .c seriesParties linked through the cloud(Accounting software house, etc.)

Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

15

Strategy No. 3 Strategic Market Launch of Cloud-based Products

Chapter 2

Key Strategies for 2020-21

Launch multiple core products into the market simultaneously to popularize the electronic trading platform as soon as
possible.

2020
SS/Basic versions

2021

2022

July

Maintenance
January

Advanced version
Bodywork
Car sales
Parts dealing
Parts recycling
Electronic trading
platform

New parts
Recycled parts

Glass
Electronics

June
Januaryand beyond

Equipment& tools* The schedule may change depending on the external environment.

Launch SS/basic versions

Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

Start to conduct cloud-based sales toautomobile inspection shop chains, etc.

Release a next-generation version of the electronic
trading platform (New and recycled products)

16

Strategy No. 4 Global Development of the “Broadleaf Cloud Platform”

Chapter 2

Key Strategies for 2020-21

Expand the usage of the electronic trading platform in the domestic automotive aftermarket and put efforts into global
development through service providers such as MaaS operators.

Electronic trading

Provision ofservices.c series
Module withbasic
functionality
SDK/API

Service providers(MaaS operator, etc)

Electronic
trading platform

AI

Integrated ERP

MaaS

Database

Broadleaf
Cloud
Platform

Provision of
integrated ERP
Third parties

Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

17

Chapter 2

Creation of a Sustainable Society ~ Looking towards 2021 and beyond ~Key Strategies for 2020-21

The Broadleaf Group will contribute to creating a sustainable society by facilitating the evolution of the automotive aftermarket
and the establishment of new mobility infrastructure.

Environment
Connected

Autonomous➢ Efforts to reduce green housegases➢ Efforts to break free from fossil
fuels

MaaS

Shared & Services

Creation of asustainable society

Electric

Evolution of the automotive aftermarket & theestablishment of new mobility infrastructure

Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

Society

Economy➢ Efforts to decrease thenumber of deaths from traffic
accidents➢ Initiatives to provide support
for vulnerable road users➢ Efforts aimed at job creation➢ Efforts to alleviate traffic
congestion18

Contents
1.

Overview of FY12/2019 Business Results

2.

Key Strategies for 2020-21

3. Results Forecasts for FY12/2020
4.

Reference
Appendix: Corporate Profile, Revenue Category

Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

19

Chapter 3

Result Forecasts（Consolidated, IFRS）

Results Forecasts for FY12/2020

Revenue and profit are expected to increase for the fourth consecutive years byimplementing key strategies.
（¥ million）

FY2020 FY2019
Full-year
Full-year
forecasts

YoYchangeYoY(ratio)FY2020 FY2019
1H
forecasts

1H

YoYchangeYoY(ratio)Revenue

22,70022,586

+114

+0.5%

11,20011,072

+128

+1.2%

Operating profit

4,600

4,525

+75

+1.7%

2,000

2,080

-80

-3.8%

Profit before tax

4,600

4,486

+114

+2.6%

2,000

2,075

-75

-3.6%

Profit attributable toowners of parent

3,100

3,093

+7

+0.2%

1,300

1,361

-61

-4.5%

¥35.46¥35.40--¥14.87¥15.59--Basic earnings per share
Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

20

Sales Forecasts by Revenue Category（Consolidated, IFRS）

Chapter 3

Results Forecasts for FY12/2020

Revenue is expected to increase by accumulation of monthly fees of platforms.

（¥ million）

FY2020 FY2019
Full-year
Full-year
forecasts

YoYchangeYoY(ratio)FY2020 FY2019
1H
forecasts

1H

YoYchangeYoY(ratio)Platforms

10,50010,192

+308

+3.0%

5,150

4,948

+202

+4.1%

Basic

7,850

7,654

+196

+2.6%

3,850

3,717

+133

+3.6%

950

920

+30

+3.3%

450

455

-5

-1.0%

Support

1,500

1,478

+22

+1.5%

750

706

+44

+6.2%

Others200

140+60 +42.6%

100

70

+30 +42.5%

Applications

12,20012,394

-194

-1.6%

6,050

6,123

-73

-1.2%

10,00010,448

-448

-4.3%

4,850

5,173

-323

-6.2%

OTRS

350

338

+12

+3.6%

150

208

-58

-27.7%

Others

1,850

1,608

+242

+15.1%

1,050

743

22,70022,586

+114

+0.5%

11,20011,072

EDI/Payment settlement

By industry

Total
Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

+307 +41.4%
+128

+1.2%
21

Chapter 3

Breakdown of Operating Profit（Consolidated, IFRS）

Results Forecasts for FY12/2020

Operating profit is expected to increase by cost control which will offset
higher amortization expenses of cloud software and personnel expenses.
（ ¥ million ）+ shows the factor for an increase

Increasein sales+114
Operatingprofit4,525

Decreasein cost of
sales
+94

Decrease inadvertisingexpenses+50
Increase inpersonnel
expenses-63

Decrease inshare-related
expenses+55
Increasein R&D
expenses-68

in operating profit from the year-ago level－ shows the factor for a decreasein operating profit from the year-ago level

Operating
Profit4,600
Others-107

Decrease in development
subcontract cost+300
Increase in amortizationof cloud software-160

FY2019Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

FY2020(forecast)
22

Chapter 3

Dividend per ShareResults Forecasts for FY12/2020

The year-end dividend for the fiscal year ended December 31, 2019 will be ¥6.50,
as forecasted (Annual dividend: ¥13.00).
The annual dividend for the fiscal year ending December 31, 2020 is planned toincrease to ¥13.20 (interim ¥6.60, year-end ¥6.60).

Annual dividend（Payout ratio）

Year-end¥12.00（39.5%）¥6.50

Year-end

InterimInterim¥5.50

FY2018
Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

¥13.20（37.2%）¥13.00（36.7%）

¥6.50

¥6.50

FY2019Year-end

Interim

¥6.60

¥6.60

FY2020(Forecast)
FY2020（予想）23Contents
1.

Overview of FY12/2019 Business Results

2.

Key Strategies for 2020-21

3.

Results Forecasts for FY12/2020

4. Reference
Appendix: Corporate Profile, Revenue Category

Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

24

Chapter 4International Auto Aftermarket EXPO 2020

Reference

Broadleaf will exhibit at "18th International Auto Aftermarket EXPO2020 (IAAE)"
held at Tokyo Big Sight from March 11 (Wed) to 13 (Fri), 2020.
Services with the themes of "work system reform," "store reform,"and "productivity improvement" will be displayed.
Various IT solutions that support users based on AI and cloud technologies will be exhibited.
Free seminars inviting popular lecturers and famous consultants from various fields will be held.
Exhibition overview
・ Various IT solutions
・ Free seminars
・ Exhibitions and seminars of partner companies(NEXT-SYSTEM Co.,Ltd., Zenmov Inc., etc.)
Event summary
Title: The 18th International Auto Aftermarket EXPO2020
Date: March 11 (Wed)-13 (Fri), 2020
Hours: 10: 00-17: 00 (last day only until 16:00)
Booth number : 3411
Image of IAAE2019

Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

28

Contents
1.

Overview of FY12/2019 Business Results

2.

Key Strategies for 2020-21

3.

Results Forecasts for FY12/2020

4.

Reference

Appendix Corporate Profile、Revenue Category

Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

29

Explanation of Revenue Category
Major
category

Classification
Mediumcategory

Appendix

Detailed businesses

Smallcategory- (Monthly) Provision of applications

PaaS/SaaS

Basic

Platforms- (Monthly) Provision of databases for applications (information on automotive parts, vehicles and indexes,
data on transportation means, data on tourism spots, etc.)- (Lump-sum/Monthly) Provision of basic application functions and middleware

EDI/
Payment
settlement

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 thetransaction of automotive recycled parts- Provision of an electronic system “BL Parts Order System” for receiving/placing orders forautomotive parts

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

Support- Provision of support and hardware maintenance services for clients in varieties of industries
Service
Provision of- Sale of exclusive forms and OA supply goods
Consumables

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

By industry
Applications(Automobile-related: auto maintenance shops, car dealers, body shops, auto parts dealers, glass shops,
electrical equipment shops, auto parts recycling shops, 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©2020 Broadleaf.Co.,Ltd. All rights reserved.

30

Corporate Profile

Appendix

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 enterprise 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©2020 Broadleaf.Co.,Ltd. All rights reserved.

31

Disclaimer
Results forecasts and future predictions provided in thisdocument are the Company’s judgment based on the information
available as of the time of preparation of the document andcontain potential risks and uncertainties.
Accordingly, please understand that the actual results may differ
from the results forecasts provided here.
【Contact Information】
Broadleaf Co., Ltd.
Investor Relations Department
E-Mail：bl-ir@broadleaf.co.jp

Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

32