1Q FY12/2024
Business Results Briefing Material

May 9, 2024
Broadleaf Co., Ltd.

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

Table of Content

Business Results for 1Q FY2024

P３

Earnings forecast for the first half
and full year

P11

Progress of the Medium-Term
Management Plan (2022-28)

P21

Supplement Information

P27

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

2

Business Results for 1Q FY2024

P３

Earnings forecast for the first half
and full year

P11

Progress of the Medium-Term
Management Plan (2022-28)

P21

Supplement Information

P27

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

3

Information & Consideration[Basic IR Policy]
If a new risk that causes fluctuations in business results arises, the Company willappropriately disclose the estimated impact on business results.
[Risks and Notes that occurred in the 1Q of the current fiscal year under review]
The sales timing of cloud software for auto parts dealers has been changed from the firsthalf of the initial plan to the third quarter and beyond. The expected impact on businessresults, which is calculated based on the worst-case scenario (sales commencement at the
beginning of 2025) because the start of sales is not yet determined at this time, is includedin this document.

The Company is implementing measures to avoid fluctuations inbusiness results, but it takes time to rationally calculate the expected effects. Accordingly,
the "maximum risk" in this document is a figure that does not take into account the effectsof countermeasures.
[Summary]
・1Q results were favorable, 1H forecasts were revised upward, and the probability ofachieving the full-year forecasts increased.
・Initiated measures to deal with newly occurring risks, and is currently working to avoid
any impact on future results.
Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

4

Business results for 1Q FY2024

First quarter summary

・Steady start toward achieving full-year operating profit
・Initiate measures for new risk factors at an early stage to improve the accuracy of planachievement

Business environment
・Our customers are increasingly interested in DX (Digital Transformation)
・Aggressively reforming businesses for environmental application and diversifying IT requirements(Response to digital infrastructure, application to supply chain automation, real-time linkage with mission critical systems, etc.)

Priority initiatives
・Cloud penetration: Propose optimal DX to meet the diverse needs of each customer
・Service expansion: Continue additional development aimed at expanding targeted business formats and functions for cloud software

Positive Business Results
・The accumulation of monthly subscription products wasin line with expectations, Packaged system settled inexcess of expectations⇒ Increased sales forecast for the 1H by 150 million yen
・Improving Operational Efficiency and Restrain
Cost Increases⇒ Reduced total cost forecast for the 1H by 100 million
yen※Results of the above 2 points
・Upward revision of 1H operating income forecast by
250 million yen
Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

New Risks・Postpone sales of cloud software for parts merchants⇒ Risk of up to 150 million yen in sales in the 2H・Raising costs for IT infrastructure, etc. are rising more than
expected⇒ Total costs in 2H exceed previous forecast by 100 million yen※Results of the above 2 points
・Revised down 2H operating income forecast by 250 million yen

Suppl.) Delay in sales of cloud software for auto parts dealers, Riskof up to 400 million yen to operating income for the comingyear*(Decrease in revenues: ¥350 million+Increase in costs: ¥50 million)*Estimated value when countermeasures are not implemented

5

Business results for 1Q FY2024

Summary of first quarter results・Continued double-digit revenue growth as software users increasingly
switch to monthly subscriptions
・Promoted measures to improve operational efficiency and absorbed cost
increase factors, resulting in significant improvement in profit and loss
FY2024
1Q（Millions of yen）

FY2023
1Q

Y o Y change

Y o Y ratio

Revenue

4,014

3,629

＋384

+10.6%

Cost of sales

1,409

1,483

-75

-5.0%

Gross profit

2,605

2,146

＋459

＋21.4%

SG&A expenses, etc.

2,715

2,682

＋33

＋1.2%

Operating profit*

-109

-536

＋426

-

Profit before tax*

-42

-541

＋499

-

Profit attributable to owners of theparent*

-35

-405

＋370

-

-0.39 yen

-4.58 yen--

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

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

6

Business results for 1Q FY2024

Revenue by service category

・The increase in software service revenue exceeded the decrease in operation andsupport service revenue due to the shift to monthly subscriptions
FY2024
1Q（Millions of yen）

FY2023
1Q

Y o Y change

Y o Y ratio

1,676

935

+741

+79.3%

1,529

775

+753

+97.2%

Marketplace

148

160

-12

-7.6%

Package system

2,337

2,694

-357

-13.2%

619

754

-135

-17.9%

1,719

1,941

-222

-11.4%

Total

4,014

3,629

+384

+10.6%

Recurring revenue*

3,395

2,876

+519

+18.1%

85％

79%

-

-

Cloud service
Software service

software sales
Operation and support service

Recurring revenue ratio* Total of Cloud service and Operation and support

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7

Business results for 1Q FY2024

Factors behind changes in Operating profit Y to Y

・While fixed costs are on the rise, the Company is promoting variable cost
optimization and consumption control
Operating loss
（Millions of yen）

FY2023
1Q＋：Profit increase factors
ー：Profit decrease factors

Decrease incost ofproduction+139

Increase inrevenue+384

Cost of sales

Decrease inoperatingcost+43

Increase inamortization
expense ofcloud
software-40

Increase in IT
infrastructure
procurement
cost
-40

Increase inpersonnel
expenses-24

Others-39

・ Decrease in development costs to
expand cloud service menu
・ Increase in amortization expenses
due to expansion of the scope offunctions provided by cloud services

FY2024
1Q-109

・ Increase in cost of services

SG&A expenses, etc.
・ Decrease in operating-related
expenses such as transportation
expenses・ Increase in personnel costs due toincrease in personnel, etc
・ Increase in IT infrastructure
procurement costs for providing cloudservices-536・ Increase in administrative outsourcing
costs, etc

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8

Business results for 1Q FY2024

Balance sheet status

・Cash and cash equivalents increased due to increases in borrowings andcontract liabilities, etc.
・Intangible assets increased due to continued investment in cloud service
development
FY2024End of 1Q（Millions of yen）

FY2023Year-end

Y o Y change

Major breakdown ofincrease/decrease

Current assets

8,450

7,053

＋1,397 Cash and cash equivalentNon-current assets

30,156

29,696＋460 Intangible assets+596

38,60636,750Current liabilities

10,228

11,079Non-current liabilities

5,845

3,184

＋2,661

Total liabilities

16,073

14,263＋1,810Total equity

22,53322,487

Total liabilities and equity

38,60636,750Total assets＋1,310＋1,857
Short-term interest-bearing-851 debt -1,062

Contract liabilities ＋596
long-term interest-bearing
debt +2,669＋47 Dividend payout -91＋1,857

Supplement)This is mainly due to advances received under a 5-year package (5-year lump-sum payment) cloud software contract forcontracted debt. Sales are booked on a pro rata basis over the period. Accordingly, an increase in contractual liabilities is
a positive indicator of cash flow. Furthermore, it has the effect of suppressing the “ease of cancellation”, which is the weak
point of monthly subscriptions. And it also helps improve customer retention.
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9

Business results for 1Q FY2024

Cash flows status

・Operating cash flow increased due to increased revenue due to stock sales
and decreased purchasing amount.
FY2024
1Q（百万円）

Cash flow from operating activities

806

FY2023
1Q
136

YoYchangeMajor breakdown ofincrease/decrease＋670

Improvement in loss before-tax ＋499
Decrease in operating and other payable–218
Increase in contract liabilities +159

Cash flow from investment activities

-889

-854

-35

Increase in payments for acquisitionof intangible assets -258
Proceeds from sales and redemptionsof investments ＋331

Cash flow from financing activities

1,391

561

＋829

Decrease in short-term debts -3,820
Proceeds from long-term +4,700

-83

-718

＋635

Free Cash flow

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10

Business Results for 1Q FY2024

P３

Earnings forecast for the first half
and full year

P11

Progress of the Medium-Term
Management Plan (2022-28)

P21

Supplement Information

P27

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

11

Earnings forecast for the first half and full year

Forecast for the second quarter and beyond

The risks listed here are calculated based on the risks and notes listed on page 4.

2Q（Apr-Jun）
Our situation: We have postponed the sales timing of cloud software for auto parts dealers to after 3Q and
are considering more details. Started recovery measures (sales) after postponement of sales
Revenue: 2Q is expected to be in line with initial forecasts, and the excess over revenue in 1Q is reflected in 1H
forecasts: ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・+150 million yen
Cost: Reduce 2Q costs, including delays from 1Q, and reflect them in 1H forecast:・・・・・・-100 million yen

Second half（Jul‐Dec）
Our situation: There are many projects for which leases for package software have expired, and the number of projects
for switching to cloud software is increasing. Continue to invest in expanding targeted businesses andfunctions for cloud software (P21 sales schedule)
Revenue: Including the maximum risk associated with the postponement of sales against the initial assumption.
-150 million yen
Cost: Deferral of sales was offset by higher development costs and lower depreciation costs, and the impact during theperiod was limited. Considering the depreciation of the yen and other factors, the risk of an increase in various
funding costs is incorporated・・・・・・・・・・・・・・・・・・・・・・・・・・・up +100 million yen

FY2025
Our situation: The number of projects switching from packaged software to cloud software continues
at a high level. Continue to invest in development to expand targeted business formats
and expand functions for cloud software.
Performance Plan: In the worst scenario (sales commenced in January 2025) due to thepostponement of sales to auto parts dealers, Risks of up to 400 million yen in operating
income (breakdown: Decrease in sales 350 million yen + Increase in costs 50 million yen)
Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

12

Earnings forecast for the first half

Earnings forecast for the first half and full year

・Previous forecasts (Feb 9, 2024) have been revised upward to reflect
for the first quarter results within current business conditions.
・The Company reviewed the sales schedule for cloud software, but the
impact on first half results was limited.
FY2024FY2024
BeforeRevisionsrevisions toto forecast
forecast forfor the 1H
the 1H（Millions of yen）

FY2023
1st Half

ChangeYoY

Y o Y ratio

Revenue

8,150

8,000

+150

7,390

+760

+10.3%

Cost of sales

2,900

3,000

-100

2,985

-85

-2.8%

Gross profit

5,250

5,000

+250

4,405

+745

＋16.9%

SG&A expenses, etc.

5,750

5,750

±0

5,516

+234

+4.2%

Operating profit*

-500

-750

+250

-1,111+611-

Profit before-tax*

-500

-750

+250

-1,102+602-

Profit attributable to owners of theparent*

-400

-600

+200

-826

+426

-

‐4.49yen‐6.74yen-‐9.33yenｰ-

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

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

13

Earnings forecast for the first half and full year

Earnings forecast for the first half of Revenue by service category
・The Company is prepared to continue to move toward subscriptions asplanned, and cloud service is expected to continue as expected.
・Package system sales and ancillary services are strong, upward revision of
package system
FY2024FY2024
BeforeRevisionsrevisions toto forecast
forecast forfor the 1H
the 1H（Millions of yen）

ChangeFY2023
1st Half

YoY

Y o Y ratio

3,600

3,600

±0

2,141

+1,458+68.1%

3,300

3,300

±0

1,824

+1,476+81.0%

Marketplace

300

300

±0

318

-18

-5.6%

Package system

4,550

4,400

+150

5,248

-698

-13.3%

software sales

1,250

1,200

+50

1,546

-296

-19.2%

Operation and support service

3,300

3,200

+100

3,702

-402

-10.9%

8,150

8,000

+150

7,390

+760

+10.3%

Cloud service
Software service

Total

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14

Earnings forecast for the second half

Earnings forecast for the first half and full year

・The Company has factored into our second-half forecast a decrease insales revenue of 150 million yen and an increase in cost of sales of 100
million yen as risks to business results due to a review of the cloud
software sales schedule.
FY2024FY2024
BeforeRevisionsrevisions toto forecast
forecast forfor the 2H
the 2H（Millions of yen）

ChangeFY2023
2nd Half

YoY

Y o Y ratio

Revenue

9,450

9,600

-150

7,995

+1,455+18.2%

Cost of sales

3,150

3,050

+100

3,060

+90

+2.9%

Gross profit

6,300

6,550

-250

4,935

+1,365+27.7%

SG&A expenses, etc.

5,750

5,750

±０

5,726

+24

+0.4%

Operating profit*

550

800

-250

-791

+1,341-

Profit before-tax*

550

800

-250

-819

+1,369-Profit attributable to owners of theparent*

440

640

-240

-661

+1,101-* Minus(-) shown loss

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15

Earnings forecast for the first half and full year

Earnings forecast for the second half of Revenue by service category

・As a risk to sales revenue due to a review of the cloud software sales
schedule, a decrease of 100 million yen for Software services and 50 million
yen for Marketplaces has been factored into the forecast.
FY2024FY2024
BeforeRevisionsrevisions toto forecast
forecast forfor the 2H
the 2H（Millions of yen）

ChangeFY2023
2nd Half

YoY

Y o Y ratio

4,850

5,000

-150

3,094

+1,756+56.7%

4,550

4,650

-100

2,763

+1,787+64.7%

Marketplace

300

350

-50

331

-31

-9.4%

Package system

4,600

4,600

±０

4,901

-301

-6.1%

software sales

1,600

1,600

±０

1,437

+163

+11.3%

Operation and support service

3,000

3,000

±０

3,464

-464

-13.4%

9,450

9,600

-150

7,995

+1,455+18.2%

Cloud service
Software service

Total

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16

Earnings forecast for the first half and full year

Earnings forecast for full-year

・The first half forecast has been revised upward and the second half forecast has beenrevised downward from the previous forecast (Feb 9, 2024). With these factors
offsetting, the full-year forecast remains unchanged, and the Company expects toreturn to operating profit as the Plan.
FY2024FY2024
BeforeRevisionsrevisions toto forecast
forecast（Millions of yen）

FY2023full-year

ChangeYoY

Y o Y ratio

Revenue

17,60017,600±０

15,385+2,215+14.4%

Cost of sales

6,050

6,050

±０

6,045

+5

+0.1%

Gross profit

11,55011,550±０9,340+2,210+23.7%

SG&A expenses, etc.

11,50011,500±０11,242

+258

+2.3%

Operating profit*

50

50

±０

-1,902+1,952-

Profit before tax*

50

50

±０

-1,921+1,971-

Profit attributable to owners of theparent*

40

40

±０

-1,487+1,527-0.45yen---16.76yen--

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

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17

Earnings forecast for the first half and full year

Earnings forecast for the full-year of Revenue by service category

・The number monthly subscription plans has increased significantly from thesecond half. In parallel with this, the Company has been implementing
recovery measures against development extension risks since the second
quarter.
（Millions of yen）

FY2024FY2024
BeforeRevisionsrevisions toto forecast
forecast

ChangeFY2023full-year

YoY

Y o Y ratio

8,450

8,600

-150

5,236

+3,214+61.4%

7,850

7,950

-100

4,587

+3,263+71.1%

Marketplace

600

650

-50

649

-49

-7.5%

Package system

9,150

9,000

+150

10,149

-999

-9.8%

software sales

2,850

2,800

+50

2,983

-133

-4.5%

Operation and support service

6,300

6,200

+100

7,166

-866

-12.1%

17,60017,600±０

15,385+2,215+14.4%

Cloud service
Software service

Total

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18

Earnings forecast for the first half and full year

Breaking down of changes in operating profit forecast

・The decrease in upfront costs that occurred in the previous period and theincrease in costs due to high property prices are balanced
Operating profit/loss（Millions of yen） Decrease incost ofproduction
Increase in +213
revenue+2,215Decrease inoperatingcost+93

FY2023
Increase inamortization
expense ofcloud
software-241

Cost of sales＋：Profit increase factors
ー：Profit decrease factors

Increase in IT
infrastructure
procurement
cost
-102

Increase inpersonnel
expenses-224

Others-2

FY202450・Reduction in development costs
to expand cloud service menu
・Increase in amortization costs
due to expansion of the scope offunctions provided by cloud service

SG&A expenses, etc.
・Decrease in sales-related expenses
such as transportation expenses
・Increase in personnel costs due toincrease in manpower, etc.
・Increase in IT infrastructure
procurement costs for providing cloudservices(Including the effects of yen
depreciation, etc.)-1,902

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19

Earnings forecast for the first half and full year

Dividends forecast

・The dividends forecast for FY2024 is underdetermine
・Scheduled to be announced as soon as the decision is madeDividend per share

Explanation

FY2024（Yen）（Forecast）

Interim dividend

underdetermine

0.00 yen

Year-end dividend

Underdetermine

1.00 yenunderdetermine

1.00 yen--

Annual dividend
Consolidated dividend
pay out ratio

FY2023Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

・Although net loss was recorded in
FY12/2022 and FY12/2023, dividends
were paid in view of the status of retained
earnings and progress in the Medium-termManagement Plan
・Taking into account the progress of theMedium-Term Management Plan , theCompany will consider the implementationof dividend for FY12/2024.
・In the medium to long term, the Company
aims to implement shareholder returns
that achieve both profit growth andimproved capital efficiency.

20

Business Results for 1Q FY2024

P３

Earnings forecast for the first half
and full year

P11

Progress of the Medium-Term
Management Plan (2022-28)

P21

Supplement Information

P27

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

21

Sales schedule for cloud software・Introduced auto maintenance shops and auto body shops in advance to some customers in
FY2020 and began sales in the 4Q of FY2021
・Since then, we have been responding to diversifying customer needs by expanding target
industries and providing an expanded version of functions.
FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024FY2025For Mobility
sectorAuto maintenanceshops
Auto Body shops

Beta version
releasePreliminary
introduction started
Preliminary
introduction started

Sales started

Enhanced version
Enhanced version(Designated factory) (New Car Inspection System)

Sales started

Recycle shops

Sales started

Enhanced version

Auto Glass shops

Sales started

Enhanced version

Auto Parts Dealers

Test introduction

Used car dealers

Postpone launchof salesSales started

Enhanced version

Sales start
after 2025y

Auto electricalequipment shops

Appendix 1) Even after the launch of the above sales started, we plan to implement version upgrades (additional functions, etc.) for each industry as needed.
Appendix 2) For non-mobility sector, we are planning to develop cloud software for machinery tool shops (the timing of sales is yet to be determined).
In other industries, we do not plan to develop cloud software at this time, and plan to continue selling packaged software (including leasing).
Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

22

Progress of the Medium-Term Management Plan (2022-28)

Performance plan・Performance plan for 2024-2028 remain unchanged from the planned
figures announced on Feb 9, 2024.
・Plan to achieve operating profit in FY2024 and renew record highperformance in FY2026（Billions of yen）

FY2022

FY2024
Forecast

FY2023

FY2025Plan

FY2026Plan

FY2027Plan

FY2028Plan

Revenue

13.8

15.5

17.6

20.5

24.0

29.0

32.5

Operating profit *

-2.9

-1.9

0.05

1.5

4.8

10.0

13.0

Operating margin

-

-

0.3%

7%

20%

34%

40%

-2.4

-1.5

0.04

1.0

3.2

6.3

8.0

Profit attributable toowners of the parent **Minus (-) shown loss
NOTE) Forecasts and planned figures were announced on February 9, 2024.

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23

Progress of the Medium-Term Management Plan (2022-28)

Revenue forecast by service category

・Only the sales breakdown for FY2024 has been revised from the forecast
announced on Feb 9th, 2024.
（Billions of yen）

FY2022Cloud service

FY2023

FY2024
Forecast

FY2025Plan

FY2026Plan

FY2027Plan

FY2028
Plan

5.2

8.5

11.8

15.7

25.0

29.1

29.1

Software service

4.6

7.9

11.2

15.1

22.1

25.0

25.0

Marketplace

0.6

0.6

0.7

0.7

2.9

4.1

4.1

Package system

10.2

9.2

8.7

8.3

4.0

3.4

3.4

Software sales

3.1

2.9

2.6

2.9

2.2

2.0

2.0

Operation and support service

7.1

6.3

6.1

5.4

1.8

1.4

1.4

Total

15.5

17.6

20.5

24.0

29.0

32.5

32.5

Recurring revenue ratio

80%

84%

87%

88%

92%

94%

94%

NOTE) Forecasts and planned figures were announced on February 9, 2024.

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24

Progress of the Medium-Term Management Plan (2022-28)

Progress and Latest Outlook for Cloud Indicators (1)・Targets for the end of FY2024: cloud adoption rate = 30%, number of licenses = 16,000
・The number of projects switching to cloud software is expected to increase from the 2Hof FY2024
Cloud transition rate（％）

15.3

1.2

１Q

2.9

4.6

6.5

8.6

10.7

Number of licenses (standard version)
17.3

7,934

6,856

12.9

307
２Q

３Q

FY2022

４Q

１Q

２Q

３Q

４Q

FY2023

１Q

FY2024

・For package software users in the 2H of 2024
Number of contracts expected to increase・Target value at the end of 2024: 30%
・No changes to plan for cloud transition rate of
100% by 2028.

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

１Q

995

２Q

5,477
4,441
3,490
2,523
1,790

３Q

FY2022

４Q

１Q

２Q

３Q

FY2023

４Q

１Q

FY2024・To switching to cloud software in the 2H of
FY2024 The percentage of mid-to large-sized users
is expected to increase.
・Target value at the end of 2024 is 16,000 licenses
・In the postponement of sales of cloud software forparts merchants, Risk Factors for Achieving
Targets
25

Progress of the Medium-Term Management Plan (2022-28)

Progress and Latest Outlook for Cloud Indicators (2)・Targets for the end of FY2024: Average monthly license sales = 24,000yen,user retention rate = 99% or more
・Mid-to large-sized users are expected to switch to cloud software from the2H of FY2024.
Average monthly license sales (standard version, yen)

User retention rate (standard version, %)22,853

22,17821,424

21,27919,14821,561

21,16521,047

17,308

１Q

２Q

３Q

FY2022

４Q

１Q

２Q

３Q

FY2023

４Q

１Q
FY2024

・The percentage of medium to large-sized users isincreasing.
・Target value at the end of FY2024 is 24,000 yen/license
・Delay in sales of cloud software for parts merchants is arisk factor for achieving targets

99.6

99.6

1Q

2Q

99.6

99.6

99.6

3Q

4Q

１Q

FY2023

FY2024・ Although there is a large influx of new users, theretention rate remains above 99%.
・ If the percentage of existing users increases in the
future, the percentage of users retained tends to beeven higher.
・It is expected to maintain above 99% in 2024 and beyond.
Supplement) New: Users who did not use our packaged software
Existing: Users who used our packaged software

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

26

Business Results for 1Q FY2024

P３

Earnings forecast for the first half
and full year

P11

Progress of the Medium-Term
Management Plan (2022-28)

P21

Supplement Information

P27

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

27

Supplement Information

Number of software users
FY2022（number of companies）

FY2023

FY2024End of
FY2024End of 1Q

End of 2Q

End of 3Q

End of 4Q

End of 1Q

End of 2Q

End of 3Q

End of 4Q

End of 1Q

Forecast

Companies using businesssupport software

38,09838,35438,54939,34539,547

39,771

39,95539,98539,677ー

Mobility sector *36,37336,65036,85837,64337,85538,09538,28938,35038,075

ー

1,725

1,704

1,691

1,702

1,692

1,676

1,666

1,635

1,602

ー

33,57833,85334,06634,357

34,61834,88735,12735,22935,026

ー

395

991

1,557

2,231

2,973

3,744

4,527

5,381

6,048

ー

Standard
edition

274

867

1,433

2,099

2,831

3,604

4,382

5,222

5,871

ー

Existingclient

118

405

721

1,094

1,492

1,937

2,370

3,010

3,326

ー

156

462

712

1,005

1,339

1,667

2,012

2,212

2,545

ー

121

124

124

132

142

140

145

159

177

ー

33,18332,86232,50932,126

31,64531,14330,60029,84828,978

ー

4,520

4,501

4,483

4,988

4,929

4,884

4,828

4,756

4,651

ー

1.2%

2.9%

4.6%

6.5%

8.6%

10.7%

12.9%

15.3%

17.3%

30％

Non-Mobility sector *Target companies for cloud
software**
Cloud software user
companies

New client
Specific
edition
Packaged software
users
Non-Target of cloud software
Cloud transition rate

*Mobility sector: auto maintenance shops (& service stations), auto body shops, auto parts dealers, auto recycle shops, used car dealers, auto electrical equipment shops,
radiator shops Non-mobility sector: 13 industries: Mobile phone shops, machine tools dealers, travel agencies, and bus operators**Of the 13 industries, the industries targeted for cloud software in the medium-term management plan are auto maintenance shops (& service stations), auto body shops,
auto parts dealers, and auto recycle shops

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

28

Supplement Information

Indicators related to cloud software（License）

FY2022

FY2023

FY2024End of FY2024

Forecast

End of 1Q

End of 2Q

End of 3Q

End of 4Q

End of 1Q

End of 2Q

End of 3Q

End of 4Q

End of 1Q

1,306

2,056

2,857

3,620

4,656

5,649

6,721

8,156

9,301

ー

Standard Edition

307

995

1,790

2,523

3,490

4,441

5,477

6,856

7,934

16,000Existing client

136

483

950

1,381

1,970

2,552

3,166

4,244

4,807

ー

New client

171

512

840

1,142

1,520

1,889

2,311

2,612

3,127

ー

Specific edition

999

1,061

1,067

1,097

1,166

1,208

1,244

1,300

1,367

ー

Number of licenses** License refers to “Company license” and “Job license”

FY2022

（円/月）

Mar

Jun

FY2023

Sep

Dec

Mar

Jun

Sep

Dec

FY2024End of FY2024

Mar

Forecast

Average monthly license
sales*

ー

ー

ー

ー

ー

ー

ー

ー

ー

Standard Edition

17,30819,14821,047

21,27921,165

21,424

21,561

22,17822,85324,000Existing client

18,80821,15023,326

24,074

23,837

24,32424,55324,82325,598ーNew client

16,115

17,261

18,47017,90017,701

17,507

17,461

17,881

18,632

ー

ー

ー

ー

ー

ー

ー

ー

ー

ー

ー

Specific editionー* License refers to “Company license” and “Job license”

FY2022End of 4Q
Cloud software user retention rate*ー

FY2023
１Q

１H

3Q

99.6%

99.6%

99.6%

Full-year
99.6%

FY2024End of FY2024

１Q

Forecast

99.6%

99%以上

*Cloud software user retention rate: Weighted average monthly user retention rate for the cumulative periods up to full-year
Monthly user retention rate: 1-{number of monthly cancellations/ (number of cloud software users at the end of the previous fiscal year + number of newly acquired companies}

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

29

Supplement Information

Service structure (Cloud software)

Select the required licenses and options
according to the business size andcontents
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 thenumber of users. There are also otherservice menus such as database and client
support.

Company
licenseJob license

Additional
Employee AccountSelect a plan
according to thebusiness size
(mandatory)

Select a license
according to thejob type of an
employee

Added when
multiple people
use the functionsof company
license and job
アカウント①license

経営者

Start plan

Corporate manager

Account-1

Standard plan

Front desk

Account-2

Total plan

Mechanic

Account-3

OptionOnline reservation
Vehicle examinationline linkage

Select required
functions

Database

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

Insurance linkage

ClientsupportSlip
issuance30

Supplement Information

Cases of offering packaged software under the monthly subscription contracts
In certain cases, some clients may continue to use packaged software under monthly subscription
contracts for a limited period.

Case 1 A client who wishes to use a specific function on cloud software
Packaged software
monthly contract

If a client's contract for packaged
software expires before a desired
function is implemented:
The client may continue to use the packaged software
under monthly subscription contract until the desired
function becomes available on our cloud software.

Cloud software
monthly contract

Packaged software
6-year contract

Switch after the desired function
is implemented on cloud software
January
2016

January2022

Case 2 A single client who has multiple lease contracts
If a client has multiple 6-year
contracts for packaged software,each with different expiration
dates:

The client may continue to use the packaged software
under monthly subscription contracts after eachcontract expires, until all their contracts have
expired.
Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

Packaged software (A)monthly contract
Packaged software (A)6-year contract

Cloud software（A/B）
monthly contract

Packaged software (B)6-year contract

Switch after all the client’s
contracts have expired
January January
2016
2017

January January
2022
2023

31

Supplement Information

Explanation of service category
Cloud service

Packaged system

Software service

Software sales

Sales related to monthly subscription-type software

Sales related to the sale of licensed software[Product type]・“.c series”, a cloud business support software
・“.NS Series”, a packaged business support software ＊1

・“Dencho.DX”, a software compliant with the Electronic Book Storage Act

・“CarpodTab”, a tablet-based business support tool・“BL.Homepage”, a website creation and management tool・Other monthly fee-based services[Product type]・“.NS Series” , a packaged business support software ＊2
・“OTRS”, a work-analysis software
・Other software and IT tools
・Devices such as PC and printers[Sales type][Sales type]・Fixed monthly fee, usage-based fee, installation support fee, etc.

・Leasing sales, one-time sales, installation
support fee, etc.

Operation and support service

Marketplace
Sales related to ordering platform

Sales related to the use of licensed software[Product type][Product type]
・“Cloud Ordering Platform“, an open-type EC/EDI・“BL Parts Order System”, an automotive parts transaction network

・“Parts Station NET” a auto recycle parts transaction network

・Network and database delivery services
・Client support and device maintenance services
・Supplies such as stock form paper[Sales type][Sales type]・Basic fee, transaction fee, settlement agency fee, etc.

・Monthly fixed fee, one-time sales, etc.

*1 Provision in the form of monthly subscription is limited until the scheduled transition period to “.c series”.
*2 New leasing sales of “.c series” to target industries is terminated.
Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

32

Supplement Information

Corporate profile
Broadleaf Co., Ltd

Company
Representative

Kenji Oyama, Representative Director and President

Listed on

Tokyo Stock Exchange Prime Market (3673)

SectorInformation and telecommunication

Founded/established

December 2005/September 2009

Capital stock

7.148 billion yen (consolidated)

Business year

From January 1 to December 31

Business outline

Based on our proprietary Broadleaf Cloud Platform, we provide SaaS cloud services,marketplace services, and partner programs that enable functions and service
collaboration with a diverse range of players. Mobility sector is used as a IT solutionthat leads to business opportunities in various industries and industries.

Head office

8th Floor, Glascube Shinagawa, 13-14, Higashi-Shinagawa 4-chome, Shinagawa-ku, Tokyo

Domestic site

26 sales offices/3 development offices

Main subsidiaries

Tajima Co., Ltd, SALES GO Corporation, SpiralMind Corporation

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

33

Disclaimer

Statements contained in these materials regarding operating results and future projections,
These are estimates based on information available to the Company at the time the materials wereprepared, Which are subject to potential risks and uncertainties.
Accordingly, due to a variety of factors, actual results may differ materially.
Please note that these forecasts may differ from the forecasts.

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

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

34