Business Results for FY12/2022
Briefing Material(January 1, 2022-December 31, 2022)

Broadleaf Co., Ltd (3673)
February 10, 2023
Copyright©2023 Broadleaf Co.,Ltd. All rights reserved.

Table of Contents

1. Overview of Business Results for FY12/2022
2. Results Forecasts for FY12/2023
3. Progress of the Medium-Term Management Plan (2022-2028)
4. Supplemental Information

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Overview of Business Results for FY12/2022

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Overview of Business Results for FY12/2022

Changing from Conventional Software to Cloud-based Software
Mainly in the Mobility Sector
・Existing clients in the mobility sector are expanding their businessfrom a single format to total shops in order to meet the diverse needs of car owners.
・The Company speedily provides cloud-based software to clients in line with business expansion.

Conventional software

LicenseCloud-based software

Account

Account

Account

Account

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Overview of Business Results for FY12/2022

Promote Digitalization of Clients through Transition to Cloud-based Software
・The Company changes conventional software to cloud-based software, mainly those for the mobility sector.
・Through transition to cloud-based software, employees accounts will be issued.
・As the scope of digitization of clients expand, the number of employee users will increase.
・This will increase sales per company.

DX software

Electronic bookstorage act

Websitecreation tool

Business software
Auto maintenanceshops

Groupware(GWS)

Auto body shops
Recycle shops

Auto parts
dealers

Service stations

Work analysis
software (OTRS)

Auto glass
shops

Car dealers

Etc.

Broadleaf services

Auto electricalequipment shops

Radiator shops

Mobility sector
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Overview of Business Results for FY12/2022

Promote Digitalization of Ordering Business through Transition to Cloud-based Software

・The Company will promote digitization of ordering business operations
through the business software of existing clients, which are changed to cloud-based software.

“Seller” and “buyer” groups that can bematched by digitization of ordering business

Ordering platform
Ordering of parts

DX software

Ordering of vehicles

Electronic Book
Storage Act

Website creation tool

Ordering of services

Business software
Auto maintenanceshops

Auto body
shops

Auto parts
dealers

Broadleaf Services

Groupware(GWS)

Recycle shops
Service stations
Car sales

Radiator shops

Etc.

Work analysis
software (OTRS)

Auto electricalequipment shops
Auto glass shops

Etc.

Mobility sector
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Overview of Business Results for FY12/2022

Future of Conventional Software for Non-mobility Sector
・Depending on the client‘s market environment, the Company will consider whether to develop cloud-based software
for non-mobility sector.

・It is necessary to judge whether it is possible to expand the client base and the ordering platform in the sector.

3rd party program
Accounting
Human resources
systemsystemOrdering Platform
Financial system
Ordering of parts

DX software

Business software
Auto maintenanceshops

Auto body
shops
Auto parts
dealers

Websitecreation tool

Radiatorshops

Ordering of services
Groupware(GWS)

Recycleshops

Car dealers

Broadleaf
Services

Etc

Ordering of vehicles

Electronic bookstorage act

Etc.

Servicestations

Work analysis
software (OTRS)

Auto electricalequipment shops Auto glass

shops

Etc.

Mobility sector
Mobile phone
shops

Travel agencies

Machine tool
dealers

Bus operators

Electronic Book
Storage Act
Websitecreation tool

Non-mobility sector
Groupware(GWS)
Work analysis software(OTRS)

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7Overview of Business Results for FY12/2022

Release Plan of Cloud-based Software
Switch upon expiration of the 6-year lease contract

Mobility sector (9 industries)
Medium-term management plan
Cloud Target Industries (5 Industries)

2021 and earlier

Auto maintenance shops
Auto body shops
Service stations **2022

2023-2024(Details undetermined)

Cloud-based
software*

Cloud-based
software*

Auto parts dealers
Recycle shops

Car dealers Auto glass shops
Auto electrical equipment shops
Radiator shops

Packagedindustry-specificsoftware".NS Series"

Non-mobility sector (4 industries)

Cloud-basedindustry-specificsoftware".c Series" *Packaged software
Packaged software

Mobile phone shops
Machine tool dealers
Travel agencies Bus operators

Service Category (Accounting Method):

During the period of
the medium-term
management plan

Packaged software

Package system

Cloud services

Software sales (Lump-sum sales of six years license)& Operation and support service (mainly monthly sales)

Software services (monthly sales)*Sales of packaged software is ended in principle, but it is provided to some users based on monthly fees for a limited time (see page 41)**Service stations became a new market from cloud-based software

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Overview of Business Results for FY12/2022

Summary

Sales of cloud services largely increased year on year.
・The Company started full-scale provision of cloud-based software
Explanation for auto maintenance shops and auto body shops in 2022.

Sales

・Sales of other services were also strong, such as “Dencho.DX,” a new solution corresponding to ElectronicBook Storage Act launched in 2022.

Sales of packaged system largely decreased year on year.
・In principle, sales of conventional packaged software for auto maintenance shops and auto body shops were ended*

Explanation

・For other industries, the Company continues to sell packaged industry-specific software

The Company reduced SG&A expenses by improving operational efficiency
・The Company streamlined sales activities by participating in digital events and utilizing online sales contracts

Explanation

・The Company streamlined back-office operations by outsourcing, etc.

Cost
Impairment of goodwill of group company Tajima was recorded in SG&A expenses, etc.
・“Impairment loss: -615 million yen" was recorded in other operating expenses.

Explanation

・The Group will promote market penetration of cloud-based industry-specific software as a whole byactively changing its conventional software to cloud-based software.

*It is provided to some clients with monthly contract for a limited period (see page 41)

Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |9Overview of Business Results for FY12/2022

Overview of Consolidated Financial Results
・Revenue and profits decreased due to the large impact of the closing sales of packaged software
for auto maintenance shops and auto body shops
・Sales of packaged software to industries other than the above were firm, so results exceeded forecasts.
(Millions of yen)

Revenue

FY2022

FY2021

FY2022
Forecast (11/9)

YoY change

Difference

13,833

20,652-6,81913,300+533

Cloud services

2,628

1,791

+837

2,540

+88

Packaged system

11,205

18,860-7,656

10,760+445

Cost of sales

5,346

5,753

-407

5,400

-54

Gross profit

8,487

14,898-6,412

7,900

+587

SG&A expenses, etc.

11,384

11,503-120

11,100+284

Operating profit *-2,897

3,395-6,292-3,200+303

Profit before tax *-3,005

3,233-6,238-3,400+395

Profit attributable to owners of theparent *-2,431

2,173-4,604-2,700+269-27.54 yen

24.72 yen-

-30.58 yen-

Basic earnings per share**minus (-) represents loss

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Cloud Service Sales
・Sales of cloud service increased due to the start of full-scale provision of multiple software services in 2022

(Millions of yen)

FY2022

FY2021

YoY change

Explanation
Software service
・The Company started full-scale provision of cloud software
for auto maintenance shops and auto body shops in 2022

Cloud services
Software service
Marketplace

2,628

1,791

+837

・The Company started offering “Dencho.DX" in 2022

1,958

1,090

+867

Marketplace

670

701

-31

・Sales decreased due to the impact of a decrease in the transaction volume
in auto recycled parts market.

Main breakdown
861

Quarterly trends
721
489

517

529

417

430

454

247

255

276

312

347

366

170

175

179

177

170

163

173

164

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

548

FY2021

FY2022

697

Software service
・“.c Series” (standard and specific versions)・“.NS Series” (monthly contract)
・“Dencho.DX,” a solution for Electronic Book Storage Act
・“BL.Homepage,” a website creation tool
・“Google Workspace™,” a groupware
Etc.

Marketplace・Electronic ordering platform of auto repair parts
・Factoring services, etc.
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Overview of Business Results for FY12/2022

Packaged System Sales
・Sales decreased due to the closing of sales of “.NS Series” for auto maintenance shops and auto body shops.

(Millions of yen)

FY2022

FY2021

YoY change

Explanation
Software sales
・TheCompanyclosedthesalesof“.NS Series” for auto maintenanceshops and auto body shops , whichled todecreasein sales.

Packaged system

11,205

18,860-7,656
Operation and support service

Software sales

3,539

11,620-8,082

Operation and support
service

7,666

7,240

+426

Quarterly trends
4,778

2,968

4,312
2,518

・Sales increased against the backdrop of an increase in
the usage rate of ancillary services of “.NS Series”.

Main breakdown
4,789

4,982

2,972

3,162

2,737

2,737

2,826

2,905

887

867

831

953

1,809

1,795

1,817

1,820

1,850

1,870

1,994

1,952

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

FY2021

Software sales・.NS Series (multi-year lease contract)
・“OTRS,” a work analysis software Etc.

Operation and support service
・Ancillary services of “.NS Series” (support services, etc.)
・Sales of supplies such as forms and toner Etc.

FY2022
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Overview of Business Results for FY12/2022

Factors Behind Changes in Operating Profit
・Despite reduction of SG&A expenses, etc., negative impact of the decline in sales led to operating loss.

(Millions of yen)

Cost of sales

3,386

Decline incost of sales+407

OthersDecrease of+406
personnel costs+401

Increase in
the service
infrastructure
expenses-63

FY2021・Amortization expenses of cloud services increased
in line with the release of cloud services.
・Purchases of devicesdecreased due to closing salesof “.NS Series” for auto maintenance shops andauto body shops.

Impairment
loss
-615

SG&A expenses, etc.
・Service infrastructure expense
IT infrastructure expenses for cloud services
increased.

Increase in amortization
expenses of cloud services-347

FY2022・Personnel expenses
Legal welfare expense which temporarily incurredin FY2021 decreased.
・Impairment loss
Impairment of goodwill of Group company Tajima
was recorded.

Decreasein sales-6,819-2,897・Others
Business operation expenses and operating expenses
was reduced by improving operational efficiency.

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Overview of Business Results for FY12/2022

Balance Sheet Status
・Current assets decreased since the Company limited multi-year lump-sum sales of “.NS Series” to some industries.
The Company maintains sound financial position despite dividend payments and the recording of loss.
(Millions of yen)

FY2022Year-end

FY2021Year-end

YoY change

Major factors of increase/decrease

Cash and cash equivalents -65

Current assets

6,555

8,405

-1,849 Operating and other receivables -1,691

Non-current assets

26,98026,071+909 Goodwill -613

33,53534,476-940

Total assets

Intangible assets +1,223

Operating and other payables -895
Short-term interest-bearing debts -210
Contract liabilities +572

Current liabilities

6,583

7,512

Non-current liabilities

3,291

850

Total liabilities

9,873

8,362

+1,511

Total equity

23,662

26,114-2,452 Loss -2,431

Total liabilities and equity

33,53534,476-930+2,441 Long-term interest-bearing debts +2,540

Dividends payout -414

-940

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Overview of Business Results for FY12/2022

Cash Flows Status
・Operating cash flow decreased due to increased monthly subscription contracts for “.c Series.”
Still, there was no shortage in working capital.
(Millions of yen)

FY2022

FY2021

YoYchangeMajor factors of increase/decrease

Decrease in income before tax -6,238

Cash flow from operating activities

1,606

3,783

-2,176 Decrease in trade and other receivables +2,281

Cash flow from investment activities-2,910-3,388+478 Decrease in purchase of intangible assets +452

Cash flow from financing activities

1,237

-108

+1,345 Decrease in dividends paid +516

Free cash flow

-1,304395-1,699Cash and cash equivalents at year-end

3,457

3,522

-65

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2. Results Forecasts for FY12/2023

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Results Forecasts for FY12/2023

Forecast of Consolidated Results
・Sales are expected to increase due to the accumulation of sales following the transition to cloud services.
・Nevertheless, the shrinking of loss will be limited due to the anticipated increase in cost by further investments.

(Millions of yen)

Revenue

FY2023Full-year
forecast

FY2022Full-year

FY2023
1H forecast

YoY change

FY2022
1H

YoY change

15,00013,833+1,167

6,700

6,520

+180

6,000

5,346

+654

2,850

2,459

+391

9,000

8,487

+513

3,850

4,061

-211

11,70011,384

+316

6,000

5,460

+540

Operating profit *-2,700-2,897+197-2,150-1,398-752

Profit before tax *-2,800-3,005+205-2,200-1,458-742

Profit attributable to owners of theparent *-2,400-2,431+31-1,900-1,109-791-27.07 yen-27.54 yen--21.45 yen-12.57 yen-

Cost of sales
Gross profit
SG&A expenses, etc.

Basic earnings per share**minus (-) represents loss

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Results Forecasts for FY12/2023

Revenues Forecast by Service Category
・Sales of cloud services are expected to increase since the Company will continue to promote
the penetration of cloud services.
・Packaged system is expected to decline due to continued sales restrictions of “.NS Series”.
(Millions of yen)

Cloud service

FY2023Full-year
forecast

FY2022Full-year

YoY change

FY2023
1H forecast

FY2022
1H

YoY change

5,900

2,628

+3,272

2,100

1,046

+1,054

5,250

1,958

+3,292

1,800

713+1,087

Marketplace

650

670

-20

300

333

-33

Packaged system

9,100

11,205-2,105

4,600

5,474

-874

Software sales

2,200

3,539

-1,339

1,100

1,754

-654

Operation and support
service

6,900

7,666

-766

3,500

3,720

-220

15,00013,833+1,167

6,700

6,520

+180

Software service

Total

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Results Forecasts for FY12/2023

Factors Behind Changes in Operating Profit
・Costs for sales promotions and strengthening the service infrastructure is expected to increase,but the operating loss is expected to shrink in line with the increase in sales.
(Millions of yen)

Cost of sales
・Amortization expenses of cloud services
will increase in line with the release of cloud services.
Main breakdown
・Increase in amortization expenseof cloud services -118
・Increase in development costs -378

・Development costs will increase due to thedevelopment of new cloud services.
Increase in sales+1,167
SG&A expenses, etc.

Abolition ofshareholders
benefits+256

FY2022-2,897
Increasing the Increase incost of sales personnel-654
expenses-167

Others-405

FY2023
Forecast-2,700・Personnel expenses
The Company will promote hiring activities andwork style reforms.
・Others
The Company will strengthen sales andpromotional activities, as well as service infrastructure.
・Abolition of shareholders benefits
The Company abolished shareholder benefits
from FY2022.

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Results Forecasts for FY12/2023

Dividends
・The Company plans to pay a year-end dividend of 1 yen per share for FY12/2022
・Dividends for FY12/2023 are undetermined.

Dividend per share(Yen)

FY2022(Planned amount at
the end of the fiscal
year)

FY2023(Forecast)

Dividends

Interim dividend

Undecided-

Year-end dividend

Undecided

1.00

Undecided

1.00

-

-

Annual dividend
Consolidated dividend
payout ratio

・For FY12/2022, theCompany plansto pay
an annual dividendof 1 yen per share.

・For12/2023, the Company plans to announce forecast oncea reasonable calculation becomes possible in light of the
progress of the medium-term management plan and thestatus of retained earnings.

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3. Progress of the Medium-Term Management Plan (2022-2028)

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Progress of the Medium-Term Management Plan (2022-2028)

Medium-Term Management Plan (2022-2028) Growth Strategy

Growth Strategy ①

Growth Strategy ②

Cloud penetration

Expansion of services
Software users

Software service
Auto
parts
dealers

Auto
body
shops

Auto
maintenanceshops

Auto maintenance shops
and auto parts dealers, etc.

...

Marketplace...

Consumer

3rd parties

Logistics
MaaS Finance
Ordering

API/SDK
Finance companies,
system companies, etc.
(Service provider)

Digital Transformation

Data Exchanger

Consumer

Database

Transaction data
Broadleaf Cloud Platform

Master data
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Progress of the Medium-Term Management Plan (2022-2028)

Medium-Term Management Plan (2022-2028) Performance Plan
・The Company will achieve record-high performance in 2026,
with a target of operating margin of 40% and profit of 8 billion yen in 2028.
(Billions of yen)

FY2021(Reference)

FY2022

FY2023
Forecast

FY2024Plan

FY2025Plan

FY2026Plan

FY2027Plan

FY2028Plan

Revenue

20.7

13.8

15.0

18.5

22.0

25.5

29.0

32.5

Operating profit *

3.4

-2.9

-2.7

1.0

3.3

6.7

10.0

13.0

16%

-

-

5%

15%

25%

34%

40%

Profit attributable to ownersof the parent *

2.1

-2.4

-2.4

0.6

2.0

4.2

6.3

8.0

Equity attributable toowners of the parent

26.1

23.6

17.5

18.0

76%

71%

50%

52%

Operating margin

Owners' equity ratio*minus (-) represents loss

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Progress of the Medium-Term Management Plan (2022-2028)

Medium-Term Management Plan (2022-2028) Sales Plan by Service Category
・Within “Cloud services,” “Software service” is expected to drive the revenue growth.
・”Packaged system” is expected to shrink as conventional software are changed to cloud services.
(Billions of yen)

FY2021(Reference)

Cloud service

1.8

2.6

5.9

10.4

15.2

19.9

25.0

29.1

Software service

1.1

2.0

5.3

9.0

13.6

18.0

22.1

25.0

Marketplace

0.7

0.7

0.7

1.4

1.6

1.9

2.9

4.1

18.9

11.2

9.1

8.1

6.8

5.5

4.0

3.4

Software sales

11.6

3.5

2.2

2.5

2.6

2.5

2.2

2.0

Operation and support
service

7.2

7.7

6.9

5.6

4.2

3.0

1.8

1.4

Revenue

20.7

13.8

15.0

18.5

22.0

25.5

29.0

32.5

(Reference) Recurring sales ratio*

45%

74%

85%

86%

88%

90%

92%

94%

Packaged system

FY2022

FY2023
Forecast*Recurring sales ratio: (Software service, Marketplace, and Operation and support service) / Revenue

FY2024Plan

FY2025Plan

FY2026Plan

FY2027Plan

Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |FY2028Plan

24

Progress of the Medium-Term Management Plan (2022-2028)

Medium-Term Management Plan (2022-2028) Sales Plan by Service Category
・As the sales of “Software service” increases, recurring sales ratio will increase as well.
・The key product for increasing the sales of “Software service” is “.c Series,” a cloud-based industry-specific software.

Sales by Service Category(Billions of yen)

35

32.5

22.0

20.7

・“.NS Series” (monthly contract)

18.5
15.0

13.8

15
10
5

・".c Series"(Standard and specific versions)

25.5

25
20

Software service

29.0

30

45%

86%

85%

74%

88%

94%

92%

90%

・ “Dencho.DX”, a solution forElectronic Book Storage Act
・ “BL.Homepage,”a website creation tool・ “Google Workspace ™,” a groupware

0
FY2021（Ref.）FY2022
ResultSoftware service

FY2023
Forecast

FY2024
Plan

Marketplace

Cloud service

FY2025Plan

FY2026
Plan

Operation and support service

FY2027Plan

FY2028Plan

Etc.

Software sales

Packaged system

Recurring sales ratio (pay-per-use, supplies included)*

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Progress of the Medium-Term Management Plan (2022-2028)

Medium-Term Management Plan (2022-2028) Measures
・In order to penetrate the cloud-based products, the Company implements the following measures andmanages the progress using the following KPIs.

① Cloud transition
In 2022, the Company started transition to “.c Series” when existing clients’ 6-year contracts for “.NS Series”
expires. The transition is scheduled to be completed in 2028.
Related KPI: Cloud transition rate

② Market expansion“.c Series,” which has evolved into a total management system, is deployed not only in existing markets but also
in new markets such as car shop chains, car dealers that provide auto maintenance services, and service stations.
Related KPI : “.c Series” licenses and retention rate of “.c Series” users
Related indicators: Total number of users, retention rate of “.NS Series” users, and the number of “.c Series” users③Menu expansion
In addition to the various optional services of “.c Series,” the Company provides various software services,
including groupware, solutions that comply with law and regulation, and website creation tools.
Related KPI : Average monthly sales of “.c Series”
Related indicators: Number of licenses for major software services
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Progress of the Medium-Term Management Plan (2022-2028)".c Series" KPIs
・The situation of KPIs in 2022 is as follows.
Results at the end of
FY12/2022

Targets for the end of
FY12/2024

6.5%

40%

2,523 licenses

24,000 licenses-

99% or more

KPI of cloud transition
・ Cloud transition rate
KPI of market expansion
・Number of “.c Series” licenses
・Retention rate of “.c Series” users
KPI of menu extension
・Average monthly sales of “.c Series”(disclosed from FY12/2023)

21,279 yen/month

23,000 yen/month

KPI Definition
Cloud transition rate: Number of “.c Series” user companies / Number of “.c Series” target user companies*
Number of licenses: The number of charge licenses for the standard version of “.c Series”
User retention rate: Planned to be announced when disclosing the result
Average monthly sales: Monthly sales / number of charged licenses for the standard version of “.c Series”* Auto maintenance shops and service stations/auto body shops/auto parts dealers/auto recycle shops

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Progress of the Medium-Term Management Plan (2022-2028)".c Series" KPI ①: Cloud Transition Rate・Some clients temporarily switched to monthly subscription contracts of “.NS Series.”
As a result, the progress of cloud transition rate was moderate.
“.c Series” user companies

Cloud transition rate".NS Series" user companies (".c Series" target industries*)

6.5%
1.2%

4.6%

2.9%

Cloud transition rate(companies)

33,57833,85334,06634,357

395

991

1,557

2,231

・Intheearly stage, the transition will proceed moderately.

“.c Series” user companies

・The number does not include usersusing “.NS Series”
under monthly subscription contractsfor a limited time.
33,18332,86232,50932,126End of 1Q

End of 2Q

End of 3Q

End of 4Q

FY2022

Definition of cloud transition rate“.c Series” user companies ÷ user companies in the target industries of “.c Series”** Auto maintenance shops and service stations/auto body shops/auto parts dealers/auto recycle shops
NOTE) “.c Series” for auto parts dealers and auto recycle shops are before the launch

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Progress of the Medium-Term Management Plan (2022-2028)“.c Series” KPI ②: Number of Licenses
・The increased number of “.c Series” licenses in 4Q mostly consist of the standard version.
Standard version (existing clients): Licensing of the standard version of “.c Series,” which was switched from.NS Series
Standard version (new clients): Number of licenses for the standard version of “.c Series,” which has newly become the Company’s client
Specific major companies and service stations: Number of licenses of “.c Series,” with special licensing system, etc.

(license)

Standard version
3,620
2,857

1,381

Specific version

950

2,056
483

1,142

1,306

・Acquisition of new users and switching of existing users
Both remained firm.

840

・ “.c Series” for specific major companies and service stations
will be installedtomultiple stores in a lump sum for eachproject, so the pace of growth will not be constant.

512
171
999

1,061

1,067

1,097

End of 1Q

End of 2Q

End of 3Q

End of 4Q

FY2022

Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |29

Progress of the Medium-Term Management Plan (2022-2028)“.c Series” KPI ③: Average Monthly License Sales
・Average monthly license sales as of the end of 2022 were 21,279 yen/month.

Average monthly license sales of the standard version of “.c Series”
Existing client: Average monthly license sales of the standard version of “.c Series” acquired from existing users who switched from “.NS Series”
New client: Average monthly license sales of the standard version of “.c Series” acquired from new clients(yen/month)

Existing clients
・Average monthly licensesalesexceeded the target of 23,000
yen/month in December, sincethe Company made progress ininstallation to middle-sized clients.

30,00025,00021,04720,00021,27919,148New clients

17,308・Since thepercentage of small-sized users is relatively high,they tend to start with a minimal plan.

15,00010,00018,80823,32621,15024,0745,000
16,115

17,261

18,47017,900

September

December

0
March

June

FY2022

Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |30

Progress of the Medium-Term Management Plan (2022-2028)

Examples of Other Software Services
・“.c Series” will drive the software service sales, but the Company also provides other software services as well,which contribute to clients' businesses.
(license)

Website creation tool

Solutions for the Electronic Book
Storage Act

Groupware
Google Workspace™

BL.Homepage

Dencho.DX
1,459

2,189
958

1,924
1,449

912

890

920

1,078

864
225
0

End of
1Q

End of End of
2Q
3Q
FY2022End of4Q

End of
1Q

End of End of
2Q
3Q
FY2022End of4Q

End of
1Q

End of End of
2Q
3Q
FY2022

Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |End of
4Q

31

Progress of the Medium-Term Management Plan (2022-2028)

Expansion of Service
・The Company will promote diversification of services through business alliances with various companies
in addition to in-house services, starting from “.c Series.”

Business area expansion
Data utilization service

Mobility-related
sectorElectronic ordering /EC

Mobility sector
Parts transaction

Advertising

Software service
Mobility sector
SoftwareSolution for
Inside sales
electronic book
(SALES GO)
storage act
SNS linkage(LINE)

WebsiteCreation tool“.c Series”
Groupware(Google)Personnel
Affairs

Insurance

Accounting

Settlement

Etc.

Ordering of
repair parts

Digital Transformation...

Logistics
Human resource
development andrecruiting

Finance(Toyota Finance)

Diversificationof services

Data exchange

Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |32

Progress of the Medium-Term Management Plan (2022-2028)

Indicators List ①(Millions of yen)

FY2021
Full-year

FY2022
1Q

1H

Cumulative
3Q

Full-year

Recurring sales

9,031

2,367

4,766

7,481

10,294

Recurring sales ratio (%)

44%

73%

73%

74%

74%

(companies)

FY2021

FY2022End of 4Q

End of 1Q

End of 2Q

End of 3Q

End of 4Q

Total number of user companies
of industry-specific software

38,00638,09838,35438,54939,345

Mobility sector*

36,26936,37336,65036,85837,643Non-mobility sector*

1,737

1,725

1,704

1,691

1,702

*Mobility sector: auto maintenance shops, auto body shops, auto parts dealers, auto recycle shops, car dealers, auto electrical equipment shops, radiator shops, auto glass shops, and service stations
Non-mobility sector: mobile phone shops, machine tools dealers, travel agencies, and bus operators (13 industries in total)

Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |33

Progress of the Medium-Term Management Plan (2022-2028)

Indicators List ②(companies)
FY2022End of 1Q
Cloud transition rate

End of 2Q

End of 2024
End of 3Q

End of 4Q

Target

1.2%

2.9%

4.6%

6.5%

40%

Target user company of “.c Series”*

33,57833,85334,06634,357-“.c Series” user companies

395

991

1,557

2,231

-

Standard version

274

867

1,433

2,099

-

Existing client

118

405

721

1,094

-

New client

156

462

712

1,005

-

121

124

124

132

-

33,18332,86232,50932,126

-

4,520

4,501

4,483

4,988

-

Specific version“.NS Series” users
Non-target user company of “.c Series”

FY2022
1Q

1H

Cumulative 3Q

Full-year

Upon expiration of “.NS Series” lease contract
Transition ratio to “.c Series”

-

35%

45%

44%

Transition ratio to “.NS Series” (monthly)

-

65%

55%

56%

*Of the 13 industries, “.c Series” target industries covered in the medium-term management plan are auto maintenance shops, auto body shops, auto parts dealers, auto recycle shops, and service stations.
Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |34

Progress of the Medium-Term Management Plan (2022-2028)

Indicators List ③(license)
FY2022End of 1Q

End of 2Q

End of 2024
End of 3Q

End of 4Q

TargetNumber of “.c Series” licenses

1,306

2,056

2,857

3,620

-

Standard version

307

995

1,790

2,523

24,000Existing client

136

483

950

1,381

-

New client

171

512

840

1,142

-

999

1,061

1,067

1,097

-

Specific version(yen/month)
FY2022March
Average monthly sales of ".c Series"

June

End of 2024
September

DecemberTarget----17,30819,14821,047

21,27923,000Existing client

18,80821,15023,326

24,074-

New client

16,115

17,261

18,47017,900

-

-

-

-

-

-

Standard version

Specific version

Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |-35

Progress of the Medium-Term Management Plan (2022-2028)

Indicators List ④(License/Company)
FY2022End of 1Q

End of 2Q

End of 3Q

End of 4Q".c Series"
Number of licenses per company

3.4

2.1

1.8

1.6

Standard Edition

1.1

1.1

1.2

1.2

Existing client

1.2

1.2

1.3

1.3

New client

1.1

1.1

1.2

1.1

Specific major companies

8.6

8.6

8.8

8.3

FY2021

FY2022End of 4Q

1Q

1H

Cumulative 3Q

Full-year

Retention rate of “.NS Series”*

-

-

99.7%

99.5%

99.3%

Number of outflows (companies)

-

-

104

161

242

Transfer to other companies (companies)

-

-

19

36

51

Bankruptcy or exit (companies)

-

-

85

125

191

33,293----“.NS Series” users ***Retention rate: 1- (outflow / number of “.NS Series” users (“.c Series” target industries))**Sum of auto maintenance shops, auto body shops, auto parts dealers, and auto recycle shops

Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |36

4. Supplemental Information

Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |37

Supplemental Information

Service Structure (Cloud-based Software Service)

Select the required licenses and options
according to the business size and contents
Job license

Company license＋

Additional Employee
Account

OptionSelect required functions＋

Select a plan according to thebusiness size (mandatory)

Select a license according to
the job type of an employee

Added when multiple people
use the functions of company
license and job license

Start plan

Corporate manager

Account-1

Standard plan

Front desk

Account-2

Vehicle examination line
linkage

Total plan

Mechanic

Account-3

Insurance linkage

・
・

・
・

・
・

・
・

＋

Online reservation+ Database / Client support / Slip issuance, etc.

Clients will select a plan from the company license menu and select necessary job licenses in addition. When multiple people use
the functions of company license and job license, purchase of additional employee account is necessary according to the number ofusers. There are also other service menus such as database and client support.
Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |38

Supplemental Information

Difference Between “.NS Series” and “.c Series”

・“.c Series” go beyond the scope of estimation preparation and client management.
It contributes to improvement of users’ operational efficiencies in wider range.

Business partners

Service corresponding toElectronic Book Storage Act

Car owners

Electronic ordering service
for auto repair parts

SNS linkage".c Series"
Customer management
Attracting customers
Sales representative".NS Series"

Preparation of estimate and invoice
Customer management

Auto maintenance shops, etc.

GroupwareInternal communications

Sales management
Preparation of slips
Accountant

Operation management
Preparation of estimate
Mechanic

Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |39

Supplemental Information

Understanding of Cloud Transition Rate

・Switching to “.c Series” will not proceed at a constant pace. Clients switch when 6-years contracts expire,so the number of switching users depends on the number of deals 6 years ago.

Understanding of cloud transition rate

100%

Early stage
Smaller number of users
will switch to “.c Series”

Middle stage
Larger number of users
will switch to “.c Series”

Late stage
Smaller number of users
will switch to “.c Series”

40%

FY2022

FY2023

FY2024FY2025

FY2026

21,285FY2016FY2028(Millions of yen)

Reference: Revenue from FY2016

16,760

FY2027

22,58621,162

20,652

FY2020

FY2021

18,195FY2017*FY2018FY2019* Tajima Inc. became consolidated subsidiary of Broadleaf Group from 3Q FY2017.
Note) “.c Series” for auto parts dealers and recycling shops have not yet been provided.
Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |40

Supplemental Information

Understanding of changes in software sales due to cloud transition(e.g. auto maintenance shops and auto body shops)
If the Company continues to sell conventional software in 2022 and beyond:
About 1/6 of user companies renew their contracts each year,
but there is a wave in the number of contract renewals depending on the year.
Sales of licenses (6-year usage rights) (Light blue)
Target of each year: About 1/6 of companies using conventional
softwareAccounting method: License fee for 6 years is booked in lump-sum
as sales in the year when the contract is renewed.

Sales of operation and support services (Dark Blue)
Target of each year: All users of conventional software
Accounting method: Monthly sales
FY2021

FY2022

FY2023

FY2024FY2025

FY2026FY2027

FY2028Renewal of contract after 5-6 years

If the Company starts selling new software (Green) from 2022:
About 1/6 of companies using conventional software will switch to new software each year.
Average sales are expected to rise after the transition completes due to different licensing systems.

FY2021

FY2022

FY2023

FY2024FY2025

FY2026FY2027

FY2028

・For the year in which the contract is switched, the period after the contract is concluded will be is booked as sales ().
Therefore, sales from the following year onward () will be roughly doubled because sales for 12 months are fully booked.
・Sales of operation and support services () are received from users of conventional software, so it will gradually decline as the transition proceeds.
Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |41

Supplemental Information

Cases for Providing a Monthly Contract of “.NS Series”

・Some clients will keep using “.NS Series” under monthly contracts for a limited period.

Case (1): Clients with multiple lease contracts
Example: Client with 6-year contract “.NS Series (for auto maintenance shop)” in 2016 and “.NS Series (for auto body shop)” in 2017".NS series (Maintenance)" monthly contract".NS Series (Maintenance)" 6-year contract".c Series (Maintenance/Autobody)" monthly contract".NS Series (Auto body)" 6-year contract

January 2016
January 2017

January 2022
January 2023

Switch after expirationof both contracts

Case (2): Clients who wish to use a specific function
Example: Client whose contract of “.NS Series” will expire in 2022, but the desired function is not implemented at the time.
“.NS Series” monthly contract“.NS Series” 6-year contract
January 2016“.c Series” monthly contract
January 2022

Switch after desired
function is implemented
Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |42

Supplemental Information

Reason for Switching to “.c Series” at the Expiration of Previous Contract

・If existing clients who have lease contracts of “.NS Series” for 6 years switch to “.c Series” before theexpiration of the contract, negative sales will be recorded.
Contract concluded
six years ago

Usage fees - trade-inrecorded as sales

In the case of“.c Series”*

Usage
fee for
6 years

Fifth year of thecontract

If the contract was changed at
this timing, usage fee will bemonthly while trade-in will be
one year, so trade-in becomeslarger than usage fee, resulting inrecording of a negative sales
Monthly
usage fee

TradeinTrade-inIn the case of “.NS Series”
with multi-year lease
contract

Usage
fee for
6 years
Trade-inRenewal ofcontract before
expiration

Expiration ofcontract

Switch to “.c Series”
upon expiration ofcontract

Monthly ・・
usage fee

+Additional license+Volume charge
Sales
recorded(monthly)

Usage
fee for
6 years
Trade-in*The same applies when selling “.NS Series” under a monthly subscription contract

Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |43

Supplemental Information

Sales Trend of Cloud Service Expected in the Future

New platform services
Auto financing, logistics MaaS, etc.

※Not included in
the performance plan

(Billions of yen)

Marketplace

4.1

Ordering platform

2.9

Software service
Cloud-based software and DX solutions

1.9

1.6
25.0
22.1
1.4

18.0
13.6

0.7
0.7
1.1

0.7
2.0

5.3

FY2021（Ref.）FY2022
ResultFY2023
Forecast

9.0

FY2024Plan

FY2025Plan

FY2026Plan

FY2027Plan

FY2028Plan

Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |44

Supplemental Information

Current service form of ordering platforms

Seller(software users)

Marketplace ofauto repair parts
Order
information

Electronic ordering(New parts)

Auto parts dealers

Buyer(software users)

Consumer(Car owners, etc.)

Inventory
information

Auto maintenance shops

Auto maintenance shops
Put up for sale

Recycle shops

EC(Recycled parts)& Factoring service
for transactions

Purchase

Auto maintenance shops

Recycle shops

Auto body shops

Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |45

Supplemental Information

Growth strategy for the ordering platform in the future

Ordering platform
To industry standards

CAGR

30% or more

Aims to penetrate the ordering platform by incorporating the ordering platform into
cloud-based software as a standard function (100% adopted)

Compliance with the ElectronicBook Storage Act will be a tailwind

Auto repair partstransaction market
New parts

Recycle parts

850 billion yen 200 billion yen
Usage level of electronic trades

Equip ordering
platform as
standard function(100% adopted)

Introduce them tovehicle examination
chains with hightransaction volumes, etc.

Introduce them toparts dealers andrecycle shops

remains low
EDI adoption rate *28.4%

Promote usage insmall-to-medium-sizedauto maintenance shops
and auto body shops

Industry standards*Adoption rate of ordering platforms by the Company’s software users (auto maintenance shops) (as of the end of 2021)

Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |46

Supplemental Information

Consolidated Financial Results for FY2022 (Comparison with Forecast)(Millions of yen)

FY2022

FY2022
Forecast (11/9)

FY2022
Forecast (8/11)

FY2022
Forecast (5/11)

FY2022
Forecast (2/9)

Revenue

13,833

13,30012,70012,30012,300

Cost of sales

5,346

5,400

5,200

5,200

5,500

Gross profit

8,487

7,900

7,500

7,100

6,800

SG&A expenses, etc.

11,384

11,10011,50011,90011,600Operating profit *-2,897-3,200-4,000-4,800-4,800

Profit before tax *-3,005-3,400-4,100-4,800-4,800

Profit attributable toowners of the parent-2,431-2,700-3,200-5,000-5,000-27.54 yen-30.58 yen-36.24 yen-56.62 yen-56.62 yen

Basic earnings per share**Minus (-) represents loss

Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |47

Supplemental Information

Revenue of FY2022 by Service Category (Comparison with Forecast)(Millions of yen)

Cloud service

FY2022
Forecast (11/9)

FY2022
Forecast (8/11)

FY2022
Forecast (5/11)

FY2022
Forecast (2/9)*

2,628

2,540

2,540

2,570

-

1,958

1,860

1,860

1,860

-

670

680

680

710

-

11,205

10,76010,1609,730-

Software sales

3,539

3,250

2,830

2,500

-

Operation and support service

7,666

7,510

7,330

7,230

-

13,833

13,30012,70012,300-Software service

Marketplace

Packaged system

Total

FY2022*Revenue forecasts by new service category was disclosed from May 11

Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |48

Supplemental Information

Company Profile

Company nameBroadleaf Co., Ltd

Representative

Kenji Oyama, Representative Director and President

Listed on

Prime Market of Tokyo Stock Exchange (3673)

SectorInformation and telecommunication

Founded/Established December 2005/September 2009
Capital stock
Fiscal year
Business outline

7.148 billion yen (consolidated)
From January 1 to December 31

Using proprietary "Broadleaf Cloud Platform" as its infrastructure, the Company
provides SaaS cloud services, marketplace-type services, and partner programs thatenable functional and service collaboration with various players.
These services are utilized as IT solutions that lead environmental changes, which are
occurring in various industries including mobility sector, to business opportunities.

Head office location Floor 8, Glasscube Shinagawa, 4-13-14 Higashi-Shinagawa, Shinagawa-ku, Tokyo
Domestic offices

27 business offices and 3 development centers in Japan

Major subsidiaries Tajima Inc., SALES GO Inc., etc.

Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |49

Disclaimer

The results forecasts and forward-looking statements contained in this document are forecasts made by theCompany based on information available at the time of preparation of the document and include potential risks
and uncertainties.
Therefore, please be aware that actual results may differ from these results forecasts due to various factors.

Contact Information
Broadleaf Co., Ltd
Investor Relations OfficeE-mail:bl-ir@broadleaf.co.jp

Copyright©2023 Broadleaf Co.,Ltd. All rights reserved. |50