Feb. 14 2019

FY2018 Financial Results

2Q FY2019 Presentation Material

2Q FY12/2019

Business Results Briefing

株式会社ブロードリーフ［東一 3673］
Aug. 2 2019

Broadleaf Co., Ltd. All rights reserved.

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

Contents

1. Overview of 1H Business Results ‥‥‥‥‥‥

01

2. Results Forecasts‥‥‥‥‥‥

09

3. Topics‥‥‥‥‥‥

14

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

Broadleaf Co., Ltd. All rights reserved.

01

Chapter 1

Overview of 1H Business Results

Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of 1H Business Results

02

PL Summary (Consolidated, IFRS)

Achieved an increase in both revenue and profit year on year, surpassing the forecast for thefirst half.
(¥ million)

FY2019FY20181H

1H

YoY change

FY20191Hforecasts

YoY (Ratio)

Revenue

11,072

10,090+982+9.7%

10,600Operating profit

2,080

1,542+538+34.9%

1,700

Profit1,361

998+363+36.4%

1,000Profit per share*¥15.59¥11.39--¥11.45* Calculated assuming that the stock split (1:2) which took effect on April 1, 2018 was carried out from the beginning of FY12/2018.

Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of 1H Business Results

03

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

Platforms

4,948

4,552+396+8.7%

FY20191H
forecasts
4,700

Basic

3,717

3,392+325

+9.6%

3,470

EDI/Payment settlement

455

453

+2+0.4%480

Support706

649+57+8.8%

650

Others7058+13+22.0%

100Applications

6,123

5,538+585+10.6%

5,900

By industry

5,173

4,914+259+5.3%4,950

OTRS

208

182+26+14.2%

250

Others743

442+300+67.9%

700

11,072

10,090+982+9.7%

10,600(¥ million)

Total

FY2019FY20181H

1H

YoY change

YoY (Ratio)

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Chapter 1 Overview of 1H Business Results

04

Breakdown of Platform Sales (Consolidated, IFRS)
Use of PaaS/SaaS increased in line with a rise in application sales.
(¥ million)

FY2019FY2018

1H

1H

Basic

YoY change

YoY (Ratio)

3,717

3,392+325+9.6%

PaaS/SaaS

2,682

2,424+258+10.7%

IaaS

1,035968+67+6.9%455453+2+0.4%

PSF*

299

304-4-1.4%

BLP/CPT*

155

149+6+4.0%

706649+57+8.8%

Support service

337

291+47+16.1%

Provision of consumables

369359+10+2.8%7058+13+22.0%

Total platform sales

4,948

4,552+396+8.7%* PSF: Settlement agency service fee in the recycled parts market

BLP: BL Parts Order System use fee

EDI/Payment settlement

SupportOthers

CPT: CarpodTab use feeBroadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of 1H Business Results05

Breakdown of Application Sales (Consolidated, IFRS)Sales by industry were driven by the Automotive category. Sales of equipment and ancillarydevices (Others) also increased.
(¥ million)

By industry

FY2019FY20181H

1H

YoY change

YoY (Ratio)

5,173

4,914

+259

+5.3%

4,387

4,100

+287

+7.0%

786

814-28-3.4%

OTRS

208

182

+26+14.2%

Others

743

442

+300

+67.9%

6,123

5,538

+585

+10.6%

Automotive
Non-automotive

Total application sales

Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of 1H 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 ofcloud-related depreciation expenses.

(¥ million)
A rise in revenue+982

Operating profit
1,542+ shows the factor for an increase in operating profit fromthe year-ago level- shows the factor for a decrease in operating profit fromthe year-ago level

A fall inpersonnel
expenses+74
A rise incost of sales-497

Operatingprofit
2,080
A rise inadvertisingexpenses-17Other-4

An increase in software
depreciation-116

FY2018 1H

FY2019 1HBroadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of 1H Business Results

07

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

FY2019End ofEnd of 1H

FY12/2018

YoY change

Main factors for increase/decrease

Current assets

8,833

10,619-1,786

Decrease in cash and deposits -2,474

Non-current assets

21,105

18,794+2,311

Increase in property, plant and equipment +734
Increase in intangible assets +1,22729,937

29,413+525

7,423

7,913-491

Decrease in income taxes -201

585

466+119

Increase in long-term interest-bearing debt +139

Total liabilities

8,008

8,379-372

Total shareholders’ equity

21,93021,033+897

29,937

29,413+525

Total assets
Current liabilities
Non-current liabilities

Total liabilities andshareholders’ equity

Recognition of profit +1,361

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Chapter 1 Overview of 1H Business Results

08

CF Summary (Consolidated, IFRS)

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

FY2019FY20181H

1H

YoY Change

Main Factors for Increase/Decrease

CF from operating activities

898

1,516-617

Increase in trade and other receivables -714

CF from investing activities-2,039-1,008-1,031

Increase in purchase of intangible assets -667

CF from financing activities-1,324-1,583

+259

-

FCF

-1,140508-1,648-Cash and cash equivalents

3,153

4,890

-1,737-

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09

Chapter 2Results Forecasts

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Chapter 2 Results Forecasts

10Results Forecasts (Consolidated, IFRS)No change to results forecasts(¥ million)

FY2019Full-year
Forecasts

FY2018Full-year

YoYchange

YoY(Ratio)FY20192H
Forecasts

FY2018
YoYchange

2H

YoY(Ratio)Revenue

22,00021,285

+715

+3.4%

10,928

11,195-267-2.4%

Operating profit

4,500

4,115

+385+9.4%

2,420

2,573-152-5.9%

Profit

2,800

2,656

+144+5.4%

1,439

1,657-219-13.2%

Profit per share¥32.07¥30.36+¥1.71-----

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Chapter 2 Results Forecasts

11Revenue Forecasts by Category (Consolidated, IFRS)No change to Revenue forecasts(¥ million)

FY2019FY2018FY2019Platforms

Full-year
YoY
Full-year
Forecastschange9,900
9,543+357

YoY
2H(Ratio)
Forecasts
+3.7%
4,952

FY2018
YoYchange
4,991-40

2H

YoY(Ratio)
-0.8%

Basic

7,270

7,175

+95+1.3%

3,553

3,784-230-6.1%

EDI/Payment settlement

1,010

935

+75

+8.0%

555

482

73

15.1%

Support

1,320

1,314+6+0.5%

614

665-51-7.7%

Others300

118+182+153.2%

230

61

169

277.0%

Applications

12,10011,742+358

+3.0%

5,977

6,204-227-3.7%

By industry

10,20010,173+27+0.3%

5,027

5,259

-232

-4.4%

OTRS

600

391+209+53.6%

392

209

184

87.9%

Others

1,300

1,178+122+10.3%

557

736

-178

-24.3%

22,00021,285

+715

+3.4%

10,928

11,195

-267

-2.4%

Total

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Chapter 2 Results Forecasts

12

Breakdown of Increase/Decrease in Full-year Operating Profit(Consolidated, IFRS)
An increase in the burden of software depreciation was offset by a rise in sales andreduction in general expenses, among other measures.

(¥ million)+ shows the factor for an increase in operating profit fromthe year-ago level- shows the factor for a decrease in operating profit fromthe year-ago level

A rise in revenue+715
A fall inpersonnel
expenses+124

Operating profit
4,115

A rise in cost of sales-548

Other+164

Operatingprofit
4,500

A rise inadvertisingexpenses-70

Includes an increase insoftware depreciation-180

FY2018FY2019(forecast)
Broadleaf Co., Ltd. All rights reserved.

Chapter 2 Results Forecasts

13Dividends
The interim dividend of ¥6.5 per share will be paid. No change to the year-end forecasts.

¥12.00(39.5%)¥11.00(50.4%)
Year-end¥5.50

Interim¥5.50

FY2017*¥13.00(40.5%)

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
Broadleaf Co., Ltd. All rights reserved.

14

Chapter 3Topics

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Chapter 3 Topics

15Progress on Initiatives for the Overseas Expansion of OTRS
Aimed to accelerate sales growth in 2020 and beyond through measures to increase sales
channels, such as OEM-based provision to KAIZEN Institute.

To be launchedprogressively
through 47 global
bases.

Conclusion of OEM agreement
Conclusion of basic
agreement

Participation in Hannover
Messe in 2019

JuneJanuary 2019

Commencement oftraining programs

August~2020 and beyond

AprilBroadleaf Co., Ltd. All rights reserved.

Chapter 3 Topics

16

Progress on Initiatives for the Growth of Data Science Areas
Work to improve value added in the Broadleaf Cloud Platform through collaboration withexternal sources.
Concluded a basic agreement on industry-academia collaboration with Yokohama City University.

Concluded a basic agreement on industry-academia collaboration to promote education for students and link with society indata science.
We expect this agreement to create synergies among human resources,
information resources and the expertise of each party. With this in mind,
the parties will develop human resources and engage in joint researchthrough human exchange, while introducing practical training programsfor students in which they are involved in actual processes for datacreation, thereby contributing to the development of society.

Yokohama City University School of Data Science
The university established the first data science
department in the Tokyo metropolitan area in April 2018with the purpose of promoting data scientists.

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17

Appendix

Corporate Profile, Revenue Category, etc.

Broadleaf Co., Ltd. All rights reserved.

Appendix

18

Corporate Profile
Corporate Name

Broadleaf Co., Ltd.
Representative Director, President and CEO
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

IT network system to support automotive aftermarket operators and provision of services on theplatform(Business applications, platforms for cooperation with different industries, recycled parts
marketplace, development of car-related contents, etc.)

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)
Broadleaf Co., Ltd. All rights reserved.

Appendix

19Explanation of Revenue CategoryClassification
Major
category

Mediumcategory

Detailed businesses

Smallcategory- 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,data on tourism spots, etc.)- Provision of basic application functions and middleware

Platforms

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 the transaction of automotive recycledpartsBLP/CPT
Supportservice

Support- Provision of an electronic system “BL Parts Order System” for receiving/placing orders for automotive parts- Provision of tablet-type operation terminals “CarpodTab” mainly for automotive maintenance companies- Provision of support and hardware maintenance services for clients in varieties of industries

Provision of- Sale of exclusive forms and OA supply goods
consumables
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(Industries: automotive maintenance, bodywork, sales, parts dealers, recycling, machinery and tool dealers, mobile phone
dealers, travel agencies, etc.)

OTRS- Sale of operation analysis/optimization software

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

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Appendix

20

Supplementary Explanation of Revenue Category

Sales from platforms
Sales from applications

IT solutions
SaaS

By industry
OTRS
Others

By industry
optionAP(*)

Lump-sumrecognition

PF

Monthly

IaaS

Infrastructure
PF

MonthlyPFPF

Lump-sumMonthly/Lump-sum

Monthly/
Lump-sumPF

Monthly/
Based onvolume of use

Data analysis

PaaSPF

BLP/CPTProvision ofconsumables

Middleware

PSF

Support service

Basic

EDI/Settlement

OthersApplications

Support

Applications

Support/Others(*) Sales from applications in the By industry and OTRS categories will be recognized as sales from SaaS due to the transfer to cloud-based versions.
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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