1Q FY12/2015
Business Results BriefingBroadleaf Co., Ltd.
TSE 1st Section: 3673

2014年11月11日
April 27, 2015

Chapter 1
Overview of 1Q FY12/2015 Business Results

Contents3Chapter 2
Results Forecasts for FY12/2015

9

Basic Strategies for FY12/2015

Appendix

1Q Topics
Basic Information on the Company

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13

Chapter 1

Overview of 1Q FY12/2015 Business Results
Chapter 2
Results Forecasts for FY12/2015

Copyright (c) Broadleaf Co., Ltd. All rights reserved.

Chapter 1

Overview of 1Q FY12/2015 Business Results

PL SummaryPOINTThere was a remarkable decline in reaction to a special factor*.
FY12/2015 1Q(¥ million)

Results

FY12/2014 1Q

YoY change

YoY (Ratio)

Results

Net sales

3,467-1,827-34.5%

5,295

Gross profit

2,386-1,638-40.7%

4,025

SG&A expenses

2,444

-27

-1.1%

2,471

Operating income-57-1,611-

1,554

Ordinary income-69-1,606

-

1,537

Net income-134-1,006-872* An increase in sales due to the termination of support for Widows XP (April 2014)
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3Chapter 1

Overview of 1Q FY12/2015 Business Results

Sales by Category
POINT

Sales in Network Service did not decline in reaction to the special factor,
but in fact increased.
FY12/2015 1Q(¥ million)

Results

FY12/2014 1Q

YoY change

YoY (Ratio)

Results

Business Application Software

2,138-1,882-46.8%

4,021

System Support

317
150
166
1,011
804
206

-44-5-39
99
84
14-12.3%-3.2%-19.2%
10.9%
11.8%
7.5%

361
155
206
912
719
192

162
44-318-2.2%
69.8%

166
26

3,467

-1,827-34.5%

5,295

Maintenance
Provision of consumables
Network ServiceStock
Transaction
PSF*1
Order placing and acceptance, etc.*2

Total*1: Payment agency service for recycled parts*2: BL Parts Order System, Carpod Tab, etc.

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4

Chapter 1

Overview of 1Q FY12/2015 Business Results

Differences from Forecasts
POINT

Sales in Network Service, a focus category, were on par with the forecast.
FY12/2015 1Q(¥ million)

Results

FY12/2015 1Q

Differences

Achievement

2,138-611

77.8%

2,750

System Support

317-3290.6%

350

Network Service

1,011

11101.1%

1,000

Stock8044100.6%

800Transaction

2066

103.4%

200

Total sales

3,467-632

84.6%

4,100

Total cost

3,525-24

99.3%

3,550-57-607-550

Business Application Software

Operating incomeForecasts** The forecasts for 1Q are based on those for the first half.
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5

Chapter 1

Overview of 1Q FY12/2015 Business Results

Progress in Growth Strategies
The BL Parts Order System is permeating the auto parts distribution market.

POINTParts dealers / Maintenance shops

Carpod Tab
Number of Carpod Tab contracts

Number of connections with maintenance shops
Number of parts dealers participating in transactions

999

1000

679

200

112

121

144

161

1,015
879

250
200

400

111

205

559

514

493

1,265

350
300

797

800
600

1,377

400

1200

662

735

150
100
5000
2013/12end 2014/3
end 2014/6
end 2014/9
end 2014/12
end 2015/3
end
2013/12末
2014/3末
2014/6末
2014/9末
2014/12末
2015/3末

2013/12末
2014/3末
2014/6末
2014/9末
2014/12末
2015/3末
2013/12end 2014/3
end 2014/6
end 2014/9
end 2014/12
end 2015/3
end

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6

Chapter 1

Overview of 1Q FY12/2015 Business Results

Breakdown of Expenses
POINT

Investment for growth continued.

(¥ million)
Net sales
Total cost
Total personnel expenses*R&D expenses
Advertising expenses
Other

Operating income
Non-operating income/expenses

Ordinary income
Extraordinary income/losses

Income before income taxes

FY12/2015 1QResults

3,467
3,525
1,427
95
112
1,889-57-11-69
6-62

FY12/2014 1Q

YoY change

Results-1,827-215
27
64-2-306-1,611
5-1,606
9-1,596

Remarks

5,295 3,740 1,399 Change in the personnel system
30 BL Parts Order System, etc.
115 reduction in general expense,
2,195 Aa decline
in sales
1,554 -16 Commitment line setting charges
1,537 -3 Sales of non-current assets
1,534* Labor cost as part of production cost is included.

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7

Chapter 1

Overview of 1Q FY12/2015 Business Results

BS SummaryPOINT

Cash and deposits declined.
(repayment of loans, acquisition of treasury stock, cash dividends paid, income taxes paid)(¥ million)

End ofFY12/2014

End of 1Q FY12/2015Results

Change from endof FY2014

RemarksResults

9,887-5,654

12,8108

22,697-5,646

3,181-3,554

302

-10

313 -

Total liabilities

3,484-3,565

7,049 -

Total net assets

19,213-2,080

21,294 decrease in retained earnings (-396)

Current assets
Non-current assets

Total assets
Current liabilities
Non-current liabilities

15,541 Decrease in cash and deposits (-4,867)
12,802 Amortization of goodwill (-167)

28,343 Decrease in loans payable (-750),

6,736 decrease in income taxes payable (-1,552)

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Increase in treasury stock (-1,722),

8Chapter 1
Overview of 1Q FY12/2015 Business Results

Chapter 2

Results Forecasts for FY12/2015

Copyright (c) Broadleaf Co., Ltd. All rights reserved.

Chapter 2

Results Forecasts for FY12/2015

Results Forecasts for First Half (by Category)POINT

The Company will expand the Network Service business and will change
its earnings structure.

(¥ million)

FY12/2015 2Q
Forecasts

YoYchangeFY12/2015 1H
YoY(Ratio)

Forecasts

YoYchange

YoY(Ratio)

4,261

1,709

67.0%

6,400-172-2.6%

System Support382

77

25.4%

700

32

4.9%Maintenance

199

43

28.1%

350

38

12.4%

Provision of consumables

183

33

32.5%

350

-5-1.7%

1,088

156

16.8%

2,100

256

13.9%

Stock845

112

15.3%

1,650

197

13.6%

Transaction

243

44

22.4%

450

58

15.1%

5,732

1,943

51.3%

9,200

116

1.3%

Business Application Software

Network Service

Total

Copyright (c) Broadleaf Co., Ltd. All rights reserved.

10Chapter 2

Results Forecasts for FY12/2015

Results Forecasts
No change from the existing results forecasts (published on February 12, 2015)

POINT

FY12/2015 (Forecasts)(¥ million)
First half

YoY change YoY (Ratio)

Full-year

YoY change YoY (Ratio)

Net sales

9,200117

1.3%

19,600705

3.7%Operating income

1,90050

2.7%

4,600

434

10.4%

20.7%

0.3%

-

23.5%

1.5%

-

1,870

43

2.3%

4,550

451

11.0%

20.3%

0.2%

-

23.2%

1.3%

-

1,020

77

8.1%

2,530

336

15.4%

11.1%

0.7%

-

12.9%

0.1%

-

40.63

4.47

12.4%

101.12

17.09

20.3%

Operating income margin

Ordinary income
Ordinary income margin

Net income
Net income margin

Earnings Per Share (Yen)

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11

Chapter 2

Results Forecasts for FY12/2015

Shareholder Return Policy

Aiming for stable dividends and a payout ratio of around 20%

Dividends

FY12/2015 (forecast) (annual dividend per share: ¥25.0)
FY12/2014 (result) (annual dividend per share: ¥20.0)

Considering other returns, taking financial conditions into account

Other return

Cancellation of treasury stock (announced on April 27)
Scheduled date of cancellation: May 15; 987,500 common shares(3.77% of the number of issued shares before the cancellation)

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12Appendix [Reference Material]

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Appendix 1

Basic Strategies for FY12/2015

Strategy Phases for Sustainable Growth
New Generation BL Cloud

1st Phase
Expansion of transaction revenue
Business softwareGroup of BL Applications

NetworksystemseriesBL Cloud Platform

Database service

Order placing andacceptance transactions

Business software
Database service

Automobile
dataAuto parts
data
Auto Index
data

Recommendationengine (AI)Application service

Super-high speed
search engine
Authentication
etc.

Auto parts
Dealers

MaintenanceWorkshops

Car Owners
Various services

Data provision service

Alliancecompanies

２nd Phase
Monetization of data provision service
Google Cloud Platform is a trademark of Google Inc.

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14Appendix 2

Basic Strategies for FY12/2015

Efforts of “Car-unselor in Your Town”
1) Easy-to-understand explanations
2) Short waiting time3) Abundant selection of parts toselect from4) Dependable technical capabilities
5) Convincing priceCar owners
Target1,000 shops

Services

160 shops

Maintenance shops
Solutions
Training
Advertising support
Provision of tools
ConsultingAprJul AugOct 11月
Nov 12月
Dec Jan
4月 May5月 Jun
6月 7月
8月 Sep9月 10月
1月 Feb
2月 Mar3月

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End of Dec.
201515

Appendix 3

1Q Topics

Exhibition at the13th International Auto Aftermarket EXPO 2015
From March 11, 2015
to March 13, 2015

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16

Appendix 4

Basic Information on the Company

Our Profile
Under our principle of maintaining a spirit of gratitude and happiness, we will continue
to grow as an integrated service provider that supports enriched car lives and people’slives by contributing to the automotive aftermarket with the power of IT and people.
Corporate Name:

Broadleaf Co., Ltd.

President and CEO:Kenji Oyama

Stock Listing:

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

Founded/Established:

December 2005/September 2009

Capital Stock:¥7,147 million

Business Outline:

Provision of services on an IT network system that supports the business of the players in
the automotive aftermarket(E.g. development of business applications, platform for collaboration between different
business sectors, marketplace for recycled auto parts, and automotive content）

Head Office Location:

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

Business Offices:

35 offices in Japan

Development Centers:

3 centers in Japan (Sapporo, Tokyo and Fukuoka)

Number of Employees: 816(as of December 31, 2014)
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17

Appendix 5

Basic Information on the Company

Sales Domain
We have a single business segment, which consists of IT services,
but sales are classified into the areas below.
Category

Category
MiddleClassification

SmallClassification

Type of Business- Development and sales of business application software for specific businesses.
- Development and sales of package software, such as information security.
- Purchase and sales of PCs and printers, etc., and others

Business Application Software

Maintenance- Provision of maintenance services for business application software and hardware tocustomers to which we sold business application software.

Provision of Consumables- Purchase and sales of special ledger sheets and OA supplies used in businessapplication software.

System Support

Database Provisioning
Service- Provision of automobile-related information and a database of parts-relatedinformation updated daily.

Server Provisioning
Service- Receipt of consideration for server maintenance necessary for the use of network
systems.

Payment Agency Servicefor Recycled Parts- Operation of “Parts Station NET,” a distribution network for recycled parts that sharesinformation on the inventories of recycled parts.
Providing payment agency services when selling and purchasing recycled parts andcollecting commissions.

Stock

Network ServiceTransaction

Electronic parts order placing
and acceptance system,- Provision of an electronic order placing and acceptance system for auto parts.
tablet-based business- Provision of tablet-based business terminals to maintenance shops, etc., and others
support tools and others

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18

Appendix 6

Basic Information on the Company

Automotive Aftermarket of JAPANThe 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.

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19

Disclaimer
Forward-looking statements contained in this material such as results
forecasts and future prospects are forecasts and estimates made byBroadleaf based on information available at the time of the preparation of thematerial, and are subject to potential risks and uncertainties. Please note that
actual results may differ from the statements contained in this material due tovarious factors.
For inquiries, please contact
Planning Department (Investor Relations)
Broadleaf Co., Ltd.
E-mail: broadleaf-ir@broadleaf.co.jp
URL: http://www.broadleaf.co.jp/english/

Copyright (c) Broadleaf Co., Ltd. All rights reserved.