1Q FY12/2018

Business Results Briefing
Broadleaf Co., Ltd.
TSE 1st Section: 3673

May 11, 2018
Broadleaf Co., Ltd. All rights reserved.

ContentsChapter 1 Overview of 1Q Business Results

1Chapter 2 Results Forecasts

9Chapter 3 Management Policy

13Appendix

Corporate Philosophy, Corporate Profile,
Group Structure, etc.

18

Note: Under IFRS, figures smaller than the units of display are rounded off. Under
Japanese accounting standards, figures smaller than the units of display are omitted.

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1Chapter 1 Overview of 1Q Business Results

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Chapter 1 Overview of 1Q Business Results
2PL Summary (Consolidated, IFRS)For 1Q, we achieved operating profit for the first time since FY12/2014(*1).

(¥ million)

Revenue

FY20181Q

FY2017
1Q

YoY change

YoY (Ratio)

4,433

3,295+1,138

34.5%

Operating profit

258-78+335-Profit

142-57+199-

EPS(*2)¥1.61-¥0.64+¥2.26-*1 We transitioned to consolidated IFRS starting with the results from FY12/2016.
*2 Calculated assuming that the stock split (1:2) which took effect on April 1, 2018 was carried out from the beginning of FY12/2017.

Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of 1Q Business Results
3

Sales by Category (Consolidated, IFRS)In addition to a significant jump in sales in Business Application Software, we also achieved higher sales in
System Support and Network Service.

FY20181Q

FY2017(*)
1Q

YoY change

YoY (Ratio)

2,689

1,794+895+49.9%

System Support

316

300

+16+5.3%

Maintenance143

135+8+5.8%

Provision of Consumables

173

165+8+5.0%

Network Service

1,428

1,201+227+18.9%

Stock1,174957+217+22.7%

227231-4-1.7%

PSF

151

159-7-4.6%

Order Placement and Acceptance

7572+3+4.5%

2713+14+110.4%

4,433

3,295+1,138+34.5%(¥ million)
Business Application SoftwareTransaction

OthersTotal* Sales from Tajima Incorporated, which was consolidated from 3Q of FY12/2017, are not included.

Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of 1Q Business Results
4(Reference) Sales by Category(Non-Consolidated, Japanese Standard)

Significant increase in sales in Broadleaf non-consolidated Business Application Software and continued
sales growth in Network Service(¥ million)

FY2018FY2017

1Q

1Q

YoY change

YoY (Ratio)

2,346

1,806+540+29.9%

System Support

298

299-0-0.3%

Maintenance140

135+4+3.6%

Provision of Consumables

158

163-5-3.5%

Network Service

1,280

1,200+80+6.7%

Stock

1,025

957+68+7.2%

226

230-3-1.7%

PSF

151

158

-7-4.6%

Order Placement and Acceptance

7572+3+4.5%

28

12+15+121.5%

3,925

3,306+619＋18.7%

Business Application Software

Transaction

Others
Total

Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of 1Q Business Results
5(Reference) Breakdown of Sales in Business Application Software(Non-Consolidated) (Japanese Standard)
Strong sales in the automotive sector, with user renewals in particular driving significant sales growth.

(¥ million)

FY20181Q

FY2017
1Q

YoY change

YoY (Ratio)

Automotive

1,724

1,119+605+54.1%

Renewed

1,567

959

+607+63.3%

New customers

157

159-2-1.4%

Non-automotive

421

433

-12-2.9%

Renewed272

297-24-8.4%

New customers

149

136+12+9.2%

Others

200

253

-52

-20.9%

2,346

1,806

+540+29.9%Total

Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of 1Q Business Results

Breakdown of Increase/Decrease in Operating Profit(Consolidated, IFRS)

6The effects of significant sales growth by Broadleaf surpassed increased share-related expenses andimpact from declining Tajima profits
A fall in
A rise in sales cost of sales+12+619(¥ million)

A rise inpersonnel
expenses-9
A rise in sharerelated expenses A rise in-140
other SG&A
expenses-44Tajima
operatingprofit-70

Operating Profit
258
Consolidatedadjustment-32

Operating Profit-78

FY2017
1Q

Broadleaf Non-consolidated
Broadleaf Co., Ltd. All rights reserved.

FY2018
1Q

Chapter 1 Overview of 1Q Business Results
7

BS Summary (Consolidated, IFRS)
Decline in cash and deposits due to acquisition of own shares and dividend payout, etc.
(¥ million)

FY2018End of 1Q

End of
FY12/2017 YoY Change

Main factors forincrease/decrease
Decrease in cash and deposits
Decrease in operating receivables
and other receivables(-1,560)

Increase in intangible assets(+276)

9,114

11,400-2,287

Non-current Assets

16,94916,663+287

Total Assets

26,06328,063-2,000Current Liabilities

6,720

7,478

-757

Decline in accrued income taxes

606

848-242

Decline in long-term interest-bearing debt (-226)

7,326

8,326-999‒

Current Assets

Non-current Liabilities
Total Liabilities(-695)‒(-449)Total Shareholders'Equity

18,736

19,737-1,001

Recognition of profit(+142)
Decrease by purchase of treasury shares(-1,005)
Decline due to year-end dividend payout (-487)

Total Liabilities andShareholders' Equity

26,06328,063-2,000‒Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of 1Q Business Results
8

CF Summary (Consolidated, IFRS)

While operating cash flow increased due to return to profitability, free cash flow was down from the same
period last year due to increased software development investment and other factors(¥ million)

CF from operating
activities
CF from investing
activities
CF from financing
activities

FY20181Q

FY2017
1Q

YoY Change

Main factors forincrease/decrease

247

119

+127 Increase in profit before tax-404-139-265 Increase in purchase of intangible assets (-274)-1,396-1,272-124 Increase in purchase of treasury shares (-475)

FCF-157-20-137‒

Cash and cash
equivalents

4,411

6,442-2,031‒

Broadleaf Co., Ltd. All rights reserved.

(+348)

9Chapter 2 Results Forecasts

Broadleaf Co., Ltd. All rights reserved

Chapter 2 Results Forecasts
10Results Forecasts (Consolidated, IFRS)No change to results forecasts(¥ million)

FY2018Full-year
Forecasts

FY2017Full-year
Results

YoY
ChangeFY2018
1HForecasts

FY2017
1H
Results

YoY
ChangeRevenue

20,40018,195+2,205

9,400

7,926+1,474

Operating profit

3,300

3,011+289

950

918+32

Profit2,100

1,932+168600

559+41EPS (*)¥24.02¥21.81+¥2.19

¥6.85

¥6.31

+¥0.54* Calculated assuming that the stock split (1:2) which took effect on April 1, 2018 was carried out from the beginning of FY12/2017.

Broadleaf Co., Ltd. All rights reserved.

Chapter 2 Results Forecasts
11Sales Forecasts by Category (Consolidated, IFRS)No change to breakdown of sales forecasts(¥ million)

YoY
ChangeFY2018
1HForecasts

1HResults

YoY
Change11,737+1,393

5,870

4,889+981

1,340
580

1,264556+76+24660
280

612
270+48+10760

708+52380

342+38

5,194
4,177
939
642+736+643+71+38

2,870
2,360
480
330

2,425
1,921
467
318+445+439

PSF

5,930
4,820
1,010
680

Order Placement andAcceptance330

296+34150

150+0Others

100
20,40078
18,195+22+2,205

30
9,400

36
7,926-6+1,474

Business Application
Software
System Support
Maintenance
Provision ofConsumables
Network ServiceStock

Transaction

Total

FY2018Full-year
Forecasts

Full-year
Results

13,130FY2017

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FY2017+13+12Chapter 2 Results Forecasts
12(Reference) Results Forecasts(Non-Consolidated, Japanese Standard)(¥ million)

FY2018Full-year
Forecasts

YoY
ChangeFY2018
1HForecasts

Full-year
Results

1HResults

YoY
ChangeNet sales

17,90017,219+680

8,200

7,975+224

Business Application
Software

11,34011,069+2705,020

4,940+79

System Support

1,270

1,230+39630

610+19

Network Service

5,290

4,919+370

2,550

2,424+125

Operating profit

2,900

2,748+151790

728+61FY2017

Broadleaf Co., Ltd. All rights reserved.

FY2017

13Chapter 3 Management Policy

Broadleaf Co., Ltd. All rights reserved

Chapter 3 Management Policy
14Core Competence History: Connecting the automotive aftermarket through a network
Developing as the sole software and IT operator for the market

Systems for parts dealers
Systems formaintenance shops

1983 1986

1991

Order receipt
and placement
systems

Network-typesystems

Systems forbodywork shops

2006

Acquisition ofTajima as
subsidiary

2011

2017

 Strengths

Existing domains

New domains- Operating base supported by an exceptional number of customers- High barriers to entry due to industry-standard BL codes- Unique growth opportunities utilizing dataBroadleaf Co., Ltd. All rights reserved.

Chapter 3 Management Policy
15

Data Value

The registered vehicle data maintained by Broadleaf is equivalent to about one in every
four vehicles owned in Japan.
Parts data

Maintenance /bodywork shops
Vehicle data

Automotive
parts dealers

Repair history data

Accumulated vehicle data equivalent to approx.
one in every four vehicles owned in JapanParts
manufacturers(passenger) vehicles owned in Japan: 61.40 million (*1)
Number of vehicles distributed
through Broadleaf systems:
16.82 million (*2)

Inventory data

Reference: Vehicles registered to Broadleaf systems: 43.55 million (*3)

Transaction dat*1 Source: Japan Automobile Manufacturers Association, Inc., as of December 31, 2017
*2 Number of vehicles issued automobile safety inspections in the last two years maintained by Broadleaf maintenance shop systems*3 Cumulative number of vehicle registrations maintained by Broadleaf maintenance shop systems over the period from 1989 to 2017 for the initial registration only.

Broadleaf Co., Ltd. All rights reserved.

Chapter 3 Management Policy
16

Example of a Data Service

Beginning coordination between finished vehicle manufacturers and maintenance shops toresolve the social issue of recall problems（百万円）
 Data matching of recalled and repaired vehicles (Extract from March 12, 2018 press release)
Auto Makers
Broadleaf

List of unrecalled
vehiclesMatching of carname and model+
Frame number

Broadleaf
Database

ConsentForm

List of unrecalled
vehiclesList ofvehicles tobe recalled

Notification Report

Private Sector
Maintenance Providers

Notification

Car intake
history forms

Broadleaf Co., Ltd. All rights reserved.

Chapter 3 Management Policy
17Broadleaf Platform

Through new platforms, we will provide a wide range of services including next-generation
system services.
Existing Domains

Growth Domains

Applications(Business Systems)

Parts Networks

New Domains

Data Services

Cloud Platform
Broadleaf Co., Ltd. All rights reserved.

New Services

18

Appendix
Corporate Philosophy, Corporate Profile, Group Structure, etc.

Broadleaf Co., Ltd. All rights reserved

Appendix 1

Corporate Philosophy

19

Gratitude and Happiness
Here at Broadleaf, our business revolves around prospering hand in hand with our customers, with anemphasis on the spirit of gratitude and happiness, as essential qualities that inextricably connectingpeople and companies.
We contribute to our customers’ business through the products and services that we provide, and aim toensure that our customers are glad they chose Broadleaf.
We derive happiness meanwhile from the sense our business is growing every day.
The emotions that we inspire in our customers fill us with gratitude and happiness, and in turn inspire us
to provide even better products and services, and greater value for society as a whole.
Broadleaf Co., Ltd. All rights reserved.

Appendix 2

Corporate Profile

Corporate Name

20

Broadleaf Co., Ltd.

Representative Director, President and CEO
Kenji OyamaListed on

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

Founded/Established

December 2005/September 2009

Capital StockJPY 7,147 million

Business Outline

IT network system to support automotive aftermarket operators andprovision of services on the platform(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

33 offices in Japan

Development Centers

3 centers in Japan (Sapporo, Tokyo and Fukuoka)

Broadleaf Co., Ltd. All rights reserved.

Appendix 3

Broadleaf Group

21

JapanBroadleaf Co., Ltd.

 Tajima Inc.

100%

 SpiralMind Co., Ltd.

100%

Overseas【海外】(The Philippines)(China)◎ Broadleaf I.T. Solutions Inc.

100%

◎ 博楽得信息科技 (合肥)有限公司

100%○ BLISAM TRADING CORP.

50%◎ 北京盛源博楽信息科技有限公司

100%◎: Consolidated subsidiaries. ○: Equity-method affiliates%: Percentage of voting rights owned

Broadleaf Co., Ltd. All rights reserved.

Appendix 4

Sales Fields

22

Although the Company is in a single segment of IT services businesses,
we have adopted the following classifications by business area
Major
category

Classification
MediumSmallcategory
category

Business Application Software- Development and sale of industry-specific business applications- Development and sale of operation analysis/optimization software- Purchase and sale of PC bodies, printers, etc.

Maintenance- Business application maintenance service to the Company’s Business
Application Software customers and provision of hardware maintenanceservices

Provision of consumables- Purchase and sale of exclusive forms and OA supply goods to be used forthe business applications

Stock- Provision of database of car-related vehicle information and parts-related
information that is updated daily- Consideration for server maintenance required for the use of network-typesystems

SystemSupportNetworkService

Detailed businesses

PSFTransaction- Operation of recycled parts distribution network “Parts Station NET” thatshares inventory information on recycled parts
Collecting fees as transaction amount settlement agency for parts dealing- Provision of computerized ordering system for automotive parts
Order Placement- Provision of tablet-type operation terminals, CarpodTab, to maintenanceand Acceptancebusiness operators, etc
Others- Products and services other then the above

Broadleaf Co., Ltd. All rights reserved.

Appendix 5

Business Application Software User Renewals

23 Image of User Renewals

Term of Lease Agreement
6 years (standard)Company sales
fluctuate based onremaining lease status

Remaining Lease
Users
Agreement

Begin negotiations overrenewal (after about
4.5 years have passed)

Agreement
RenewalStart ofrenewed lease

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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

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