1Q FY12/2014 Business Results
BriefingBroadleaf Co., Ltd.
(Securities Code: 3673 / TSE 1st Section)

May 9, 2014

Contents

1. Financial Highlights for 1Q FY12/2014

2. Progress of the Mid-term Business Plan

3. Reference Materials

11. Financial Highlights for
1Q FY12/2014

Summary of 1Q Results andForecasts for FY12/2014
In comparison with 1Q FY12/2013:Results reflected mounting demand for package licenses arising from the consumption tax increase
and from hardware replacement due to the termination of support for Windows XP.
Forecasts for the first half and for the full year:
No change from the initial forecasts given that a slide in demand is expected in the second quarter
following the aforementioned extraordinary demand.
(¥ million)

FY12/2014

FY12/2013

1Q Results

1Q Results

Above:YoY (Amount)
Below:YoY (Ratio)

FY12/2014
Forecasts
1st Half

Full Year+1,552

Net sales

5,295Operatingincome

1,554

3,743

9,000

19,000

1,550

4,000

1,530

3,950

750

2,100

41.4%
+1,192362
328.7%+1,225

Ordinary
income1,537

Net income

872

312
392.3%+762
110
691.9%

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Sales Trends by Category
Business Application Software: Results reflected mounting demand for package licenses arising fromthe consumption tax increase and from hardware replacement due to the termination of support forWindows XP.
System Support: Rush demand prior to the consumption tax increase
Network Service: Stock-type services expanded with the rising proportion of network-type licenses.
FY12/2014

FY12/2013

1Q Results

1Q Results

Net sales

5,295

3,743

Business Application
Software

4,021

2,609

System Support361323

Maintenance

155

155

Provision of consumables

206

168

912

810

Stock719635

Transaction

193

175

Network Service

Above:YoY (Amount)
Below:YoY (Ratio)+1,55241.4%+1,412
54.1%
+38
11.8%
0-0.4%
+38
22.7%
+102
12.6%
+84
13.3%
+189.8%(¥ million)
FY12/2014
Forecasts
1st Half

Full Year

9,000

19,0006,500

13,700

650

1,300

310

630

340

670

1,850

4,000

1,450

3,000

400

1,000
4

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Changes in Ratio of Network-Type Licenses
The ratio of network systems, which serve as the infrastructure of our Network Service,
has been increasing steadily.
Ratio of network system licenses
50.5%
44.2%
38.9%
32.0%
27.1%
20.0%
16.7%
13.0%
9.6%
4.6%

FY endFY12/2008

6.0%

1H endFY endFY12/2009

1H endFY endFY12/2010

1H endFY endFY12/2011

1H endFY endFY12/2012

1H endFY endFY12/2013

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Balance Sheet at the End of 1Q of FY12/2014
Achieving stronger balance sheet(¥ million)

Current assets
Cash and deposits
Noncurrent assets
Property, plant andequipment
Intangible assets
Goodwill
Investments and otherassets
Total assets
Current liabilities
Loans payableNoncurrent liabilities
Long-term loans payable
Total liabilities
Total net assets
Total liabilities and net
assetsEnd of 1Q

End ofYoY change

FY12/2014

FY12/2013

Amount13,410
8,392
12,841

14,037
9,229
13,006

-627
-837
-165

486

481

5

11,63010,532

11,791
10,699

-161
-167

724

733

-9

26,252

27,044

-792

5,748
1,500
347
167
6,095

6,133
1,500
948
750
7,082

-385
0-601
-583
-987

20,156

19,961

195

26,252

27,044-792

Cash and deposits- Dividend payments- Decreased for debt repayment

Goodwill- Goodwill arising at the time of MBO
amortized steadily (Amortized over
20 years since FY12/2010)

Loans payable- Repaid steadily- Increased with the trust-type
employee shareholding incentiveplan

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Quarterly Trend in Results- Demand before the consumption
tax increase- Demand due to termination ofsupport for Windows XP

Quarterly Trend in Net Sales

5,394

5,295

4,725
4,453

4,327
4,131

4,161

3,995
3,743

3,742
3,530
3,328

1Q

2Q

3Q

FY12/2011

3,705

3,449

4Q

1Q(Forecast)

2Q

3Q

FY12/2012

4Q

1Q

2Q

3Q

FY12/2013

4Q

1Q

2Q

FY12/2014
7

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2. Progress of the
Mid-term Business PlanMid-term Business Plan (2014-2016):
Management Policy

Evolving into a comprehensive service
provider by supporting fulfilled car life
Fulfilleded car life for car owners
Besides safety and reassurance,joy, convenience and other aspects in car life

Continuously offering new B2B2C services
9
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Mid-term Business Plan (2014-2016):Numerical Targets(¥ million)

Net sales

FY12/2013

FY12/2014

FY12/2016

Results

Forecasts

Target18,02419,00022,500Business Application Software

13,357

13,70014,500

System Support

1,284

1,300

1,500

Network Service / New Services

3,382

4,000

6,500

Operating income

3,740

4,000

7,000

Operating income margin

20.8%

21.1%

31.1%

Net sales

25,00020,000¥ million
22,50018,02419,00010,0008,000

15,000

6,000

10,000

4,000

5,000

2,00002013

Operating income

20142016

Forecasts

Target¥ million

7,000

3,740

4,000020132014

2016

Forecasts

TargetUp-front costs spent for FY12/2014 will start producing
outcomes mainly in Network Service from FY12/2016.
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10Mid-term Business Plan (2014-2016): Main Strategies
Core Strategies

Core Initiatives
Marketing Measures

1

Expand network services toboost profitability

Promote a new service brand ofCar-uncelor in Your Town
New Technology Development

2

Create new services for
medium to long-term growth３

Step up business expansion
in Asia

４

Solidify the managementfoundation

Develop a new-generation
BroadLeaf Cloud11
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Evolving into a Comprehensive Service Provider
Web
Timely Delivery

Promotion

Car Owners
BL Parts Order SystemParts Dealers

Order for Car Parts

Increase Loyal
Customers of Services

New-Generation
BroadLeaf Cloud

Car-unselor Shop

High Quality Services

32

1
Sending of Car Owners

Real Shop

In addition to bolstering Online to Offline (O2O) business,accumulate high value-added information to develop new services
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1

Promote Car-unselor in Your Town
Inauguration of the firstCar-unselor shop

Collaboration withJapan Road Service Co., Ltd.
Car Life Support Service marketedby Japan Road Service (JRS) atgeneral merchandise stores

XOffers the Car-unselor in Your
Town services as a partnercompany in car inspection andmaintenance services.
Eight shops across the country(as of the end of April 2014)

Expand the Car-unselor in Your Town services andmake them more visually recognizable to increase loyalty to the brand13
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1

Promote Car-unselor in Your Town

Participating in the 12th International Auto Aftermarket Expo 2014 as an exhibitor (March 2014)• Increase publicity of Car-unselor in Your Town and upgrade the brand14
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1.2 Use of Car Data and Car Owner Data
Various Business Sectors
CameraEquipment

Image Analysis
SystemQueryNew-Generation
BroadLeaf Cloud

Vehicle management
data owned by
the authorities

If there is nocorresponding
vehicle, vehicle data
are obtained.

Computer formanagement at shops

ReturnCar Data Query Screen- Receives license plate
data- Checks against theautomobile inspection
certificate data- Customer datamanagement

BLADE
Updating the license
plate data andreturning query results- Data on customers’cars- Maintenance service
history- Proposal history

Data offered byBroadleaf

Updating car data tooffer latest car data

Car owner data are updated and services are provided
with the use of the automatic license plate recognition system together with BLADE.
* BLADE＝BroadLeaf Automobile Database Engine
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3

Create a New-Generation BroadLeaf Cloud
New-Generation BroadLeaf Cloud
SocialMediaSensor
DataLog Files

Services Specific toBusiness Types

Common Services

TelematicsRelated DataUtility

RemodeledNetwork Series

Data links withexisting services

Higher Speed

For Businesses

Different Services

Information
Distribution andothers

Car Owners

Maintenance Shops &Bodywork Shops

Appsandothers

Put the New-Generation BroadLeaf Cloud into operationby the end of the current fiscal year in a bid to,(i) create new services; (ii) speed up existing systems;and (iii) lower the cost of replacing application servers
Copyright (c) Broadleaf Co., Ltd. All rights reserved.

16

Business Operations in China

Recycling System for China
On display in forums and exhibitions● 2014 International Forum on Collection, Reuse
and Re-fabrication of Motor Vehicles
Date: May 15, 2014
Organized by:Society of Automotive Engineers in China,
Federation of Industrial Technology Innovation Strategyfor Collection and Use of Motor Vehicle Products,
Shanghai Jiao Tong University, and others
With the participation of:
Nearly 200 personnel from Chinese domestic automotive
manufacturers and rebuilders, domestic recycling plants,
automotive research institutes and others- To be released in the first half of FY12/2014- A target of introducing it to 50 major Chineserecycling operators by the end of FY12/2014● Annual Forum and Exhibition of China NaturalResources Recycling Association
Date: May 19-21, 2014
Organized by:
China Natural Resources Recycling Association
With the (expected) participation of:
200 domestic recycling plants affiliated with the Association,
government officials from the Ministry of Commerce andothers, and specialists in the recycling industry

17
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Reference Materials

Our Profile

Corporate Philosophy
Gratitude and Satisfaction: These are the underlying principles
that drive our creation of new corporate value
as we develop enterprise solutions for our partner-clients.
Corporate Name:
President and CEO:
Stock Listing:Founded/Established:
Capital Stock:
Business Outline:

Head Office Location:
Business Offices:
Development Centers:
Number of Employees:

Broadleaf Co., Ltd.
Kenji Oyama
The First Section of the Tokyo Stock Exchange
Securities Code: 3673 (Listed on March 22, 2013)
December 2005/September 2009
¥7,133 million
Provision of services on an IT platform that supports the business ofplayers in the automotive aftermarket (e.g. development of businessapplications and automotive content, platform for collaboration between
different business sectors, marketplace for recycled auto parts)
Floor 8, Glass Cube Shinagawa, 4-13-14, Higashi-Shinagawa,Shinagawa-ku, Tokyo
35 offices in Japan
3 centers in Japan (Sapporo, Tokyo and Fukuoka)
807(as of March 31, 2014)
19
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Automotive Aftermarket
The automotive aftermarket refers to a market of products and services to be used by car owners
after purchase of their vehicles, including gasoline, accessories, safety inspections,maintenance checks, replacement of parts, and sales and scrapping.

20
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Overseas: Approach to Growth Markets
ChinaStart of transactions
between recyclingcompanies

Japan

58.1

120.89 million
China

CCRC Menu Screen(Chinese version ofthe system forrecycling companies)

Expand business into
Asia with accumulated
knowhow in japan

38.3%

79.5%

169.7
MyanmarSouth East Asia
Construct a platform
for parts distribution
and transactions

Vietnam

Car ownership rate

000

23.7%

Malaysia

380.4

00.0 million
Number of cars owned

75.59 million

Thailand11.5 million(vehicles/1,000 people)

576

ASEAN Countries

Indonesia
10.74 million

80.0

61.0%

00.0%

19.0 million
Internet penetration rateSources:
Car ownership rate:
Automotive Yearbook
Number of cars owned: Automotive Yearbook;
National Bureau of Statistics of China, 2012
Internet penetration rate: ITU, Percentage of individuals using the Internet (excel)

18.0%

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CSR Activities
Basic Policy on CSR
We will contribute to the revitalization of the automotive aftermarket and growtogether with customers in accordance with our corporate philosophy focusing on
Gratitude and Satisfaction. As a company associated with the automobile industry,
we will seek to contribute to the sustainable development of society throughenvironmental conservation and other activities.
Environmental Conservation Activities
Grow Leaf Project
Tree Planting Activities (since 2008)
Under the theme of contributing to the global environment,
we engage in the Grow Leaf Project activities.
Our goal is to plant 30,000 trees on land in need of reforestation.
Sponsorship of Musical:
The Fall of Freddie the Leaf: A Story of Life for All Ages (since 2008)
We have been co-sponsoring and promoting this musical for children.
Through the musical, we are conveying the importance of life and theenvironment to future generations.

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Cautionary Note

Forward-looking statements contained in this material such as results forecasts and future prospects areforecasts and estimates made by Broadleaf based on information available at the time of the preparation of
the material, and are subject to potential risks and uncertainties. Please note that actual results may differ
from the statements contained in this material due to various factors.

For inquiries, please contact
Planning Department (Investor Relations)
Broadleaf Co., Ltd.
E-mail: broadleaf-ir@broadleaf.co.jp
23
Copyright (c) Broadleaf Co., Ltd. All rights reserved.