Broadleaf Co., Ltd.
3Q 2017
INVESTOR RELATIONSBusiness Results Briefing
3Q FY12/2017
Broadleaf Co., Ltd.
TSE 1st Section: 3673

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

November 10, 2017

Broadleaf Co., Ltd.
3Q 2017
INVESTOR RELATIONS

Chapter 1

Overview of 3Q Business Resultsfor FY12/2017

2Chapter 2

Contents

Full-Year Results Forecasts

10

Appendix [Reference]
Corporate Profile, Management System of
the Group, Sales Fields, etc.

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

15

Broadleaf Co., Ltd.
3Q 2017
INVESTOR RELATIONS

Chapter 1

Overview of 3Q Business Resultsfor FY12/2017

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

2Broadleaf Co., Ltd.
3Q 2017
INVESTOR RELATIONSPL Summary (Consolidated, IFRS)POINT

The consolidation of Tajima was completed in August 2017, contributing to an increase in income in 3Q.
Broadleaf recorded an increase in sales and income on a non-consolidated basis as well.
(¥ million)
3Q FY12/2017 (Jan.-Sep.)
Results

YoY Change

3Q FY12/2016
YoY (Ratio)

Results

Net sales

12,487562

4.7%

11,926

Operating income

1,81988

5.1%

1,731

14.6%

--14.5%

1,159

57

5.2%

1,101

9.3%

--

9.2%

26.16

3.22

14.0%

22.94

Operating income ratio
Net income

Net income ratio
EPS** EPS in 3Q FY12/2016 is based on the assumption that a stock split (1:2) that comes into force on December 17, 2016 was
carried out at the beginning of the fiscal year.

[Reference]
FY2017 3Q (Tajima non-consolidated)
Net sales¥503 million, Operating income¥37 million,FY2017 3Q (Broadleaf non-consolidated) Net sales ¥12,073 million, Operating income ¥1,501 million, Net income ¥689 million
FY2016 3Q (Broadleaf non-consolidated) Net sales ¥11,983 million, Operating income ¥1,085 million, Net income ¥659 million
Copyright (c) Broadleaf Co., Ltd. All rights reserved

3Broadleaf Co., Ltd.
3Q 2017
INVESTOR RELATIONSSales by Category (Consolidated, IFRS)POINT

As a result of the consolidation of Tajima, sales increased in Business Application Software, System
Support and Network Service, respectively.
(¥ million)
3Q FY12/2017 (Jan.-Sep.)
Results
YoY Change
YoY (Ratio)
Business Application Software

3Q FY12/2016
Results

7,783

220

2.9%

7,56492620.2%

924

Maintenance414-16-3.6%

429

Provision of Consumables

512

173.5%

494

Network Service

3,779

340

9.9%

3,438

Stock

3,017

290

10.6%

2,728

704

26

3.8%

678

PSF

482

-5-1.0%487

Order Placement and Acceptance

222

31

16.0%

192

Others

57

25

77.0%

32

12,487562

4.7%

11,926

System SupportTransaction

Net sales

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4

Broadleaf Co., Ltd.
3Q 2017
INVESTOR RELATIONSSales by Category (Non-Consolidated)
POINT

Despite a decrease, sales in Business Application Software remained on the upward trend after 2Q.
Network Service continued to record an increase in sales.
(¥ million)
3Q FY12/2017 (Jan.-Sep., excluding Tajima)
Results
Business Application Software

YoY Change

3Q FY12/2016

YoY (Ratio)

Results

7,492

-122

-1.6%

7,613

911

-14

-1.5%

925

Maintenance

411

-20

-4.6%

431

Provision of Consumables

499

51.1%

494

Network Service

3,670

225

6.5%

3,445

Stock

2,910

175

6.4%

2,735

704

26

3.8%

678

PSF

482-5-1.0%

487

Order Placement and Acceptance

222

31

16.0%

192

Others

56

24

74.6%

32

12,073900.7%

11,983

System SupportTransaction

Net sales

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5Broadleaf Co., Ltd.
3Q 2017
INVESTOR RELATIONSBreakdown of Sales in Business Application Software(Non-Consolidated)POINT

The number of user renewal projects was on the increase, while Others recorded a decrease in sales dueto the backlash of equipment sales.
(¥ million)
3Q FY12/2017 (Jan.-Sep., excluding Tajima)
Results
Automotive

YoY Change

3Q FY12/2016

YoY (Ratio)

Results

5,507

152

2.8%

5,355

4,813

226

4.9%

4,586694-75

-9.7%

769

1,237

140

12.8%

1,097

Renewed

852

105

14.0%

747

New customers

386

36

10.2%

350

6,744

292

4.5%

6,452

Renewed

5,664

331

6.2%

5,333

New customers

1,080-39

-3.5%

1,119

748

-414

-35.6%

1,161

7,492

-122

-1.6%

7,613

RenewedNew customers
Non-automotive

TotalOthers
Business Application
Software total sales

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6

Broadleaf Co., Ltd.
3Q 2017
INVESTOR RELATIONSKey Indicators in Network Service Domain
POINT
Steadily expanding toward the industry standard.

FY12/2017

FY12/2016

End of 3QEnd of 3Q

End of FY■Transactions

BL Parts Order System
Number of connections withmaintenance shops
Number of parts dealers
participating in transactions
CarpodTab
Number of contracts

2,143

1,959

2,041

341

336

335

3,230

2,953

3,054

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7

Broadleaf Co., Ltd.
3Q 2017
INVESTOR RELATIONSBreakdown of Expenses (Consolidated, IFRS)
POINT

While the cost of sales decreased due to a decline in purchases, SG&A expenses increased mainly dueto a rise in personnel expenses.
(¥ million)
3Q FY12/2016

3Q FY12/2017 (Jan.-Sep.)
Results

YoY Change

Results

Net sales

12,487562

11,926

Cost of sales

3,332-378

3,710

SG&A expenses

7,345

615

6,729

3,881

300

3,581

107-119

227

3,356

435

2,922

8-237

245

1,819

88

1,731

Personnel Expenses
R&D Expenses
OthersOther operating revenue and expenses
Operating income[Reference] 3Q FY12/2017

Cost of sales (Tajima non-consolidated)¥202 million, SG&A expenses ¥264 million

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

8Broadleaf Co., Ltd.
3Q 2017
INVESTOR RELATIONSBS Summary (Consolidated, IFRS)POINTCash and deposits decreased while goodwill increased with the acquisition of Tajima.

(¥ million)
FY12/2017
End of 3Q

FY12/2016

YoY Change

End of FY

Current Assets

10,075-2,229

12,304

Decrease in cash and deposits (-2,748)
Increase in operating receivables (403)

Non-current Assets

16,434

3,416

13,018

Increase in goodwill (2,471)

26,5091,187

25,322

6,756

1,776

4,980

Increase in operating debt (2,135)
Decrease in accrued income taxes (-490)

947-235

1,183

Decrease in long-term loans payable (-481)

Total Liabilities

7,703

1,541

6,163

Total Shareholders' Equity

18,806-354

19,159 Decrease by acquisition of own shares (-530)

Total Liabilities andShareholders' Equity

26,5091,187

25,322

Total Assets
Current Liabilities
Non-current Liabilities

Recognition of net income (1,159)

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Decrease by dividend of surplus (-1,049)

9

Broadleaf Co., Ltd.
3Q 2017
INVESTOR RELATIONS

Chapter 2

Full-Year Results Forecasts

Copyright (c) Broadleaf Co., Ltd. All rights reserved10Broadleaf Co., Ltd.
3Q 2017
INVESTOR RELATIONS

Full-Year Results Forecasts (Consolidated, IFRS)POINT

Steady growth to 3Q mainly in terms of profit.
Continue efforts to ensure that sales and income forecasts will be achieved and changed upwards(¥ million)
FY12/2017
Forecasts

FY12/2016

YoY Change

YoY (Ratio)

Results

Net sales

17,800

1,040

6.2%

16,760Operating income

2,100-853-28.9%

2,953

11.8%

--

17.6%

1,240-636-33.9%

1,876

7.0%

--

11.2%

28.00

-11.47-29.1%

39.47

Operating income
ratio
Net income

Net income ratio

EPS[Reference] For FY12/2017 (forecasts), sales and operating income attributable to the consolidation of Tajima are ¥1,300 million and¥50 million, respectively.
Copyright (c) Broadleaf Co., Ltd. All rights reserved

11

Broadleaf Co., Ltd.
3Q 2017
INVESTOR RELATIONSSales Forecasts by Category (IFRS)POINT
Steady growth up to 3Q in Business Application Software as well.

(¥ million)
FY12/2016

FY12/2017(Consolidated)(Excluding Tajima)

Full Year
Cumulative
4Q(*)
Forecasts 3Q Results Forecasts(i)(ii)(i)-(ii)
11,30010,3507,4012,949
1,250
1,200912
338

Full Year
Forecasts
Business Application Software
System SupportResults

4QResults

10,894
1,243

3,330
319

Maintenance

550

550

411

139

570

141

Provision of Consumables

700

650

501

199

673

179

5,250

4,950

3,671

1,279

4,623

1,185

4,200

3,900

2,910

990

3,663

935

950

950

704

246

918

240

PSF

650

650

482

168

657

170

Order Placement and Acceptance

300

300

222

78

261

69

Others

100

100

57

43

43

11

Net sales

17,80016,50011,984

4,516

16,760

4,834

Network ServiceStockTransaction* IFRS-based results minus non-consolidated results of Tajima
Copyright (c) Broadleaf Co., Ltd. All rights reserved

12Factors for Changes in Operating Income(Consolidated, IFRS)

Broadleaf Co., Ltd.
3Q 2017
INVESTOR RELATIONS

POINT
Personnel expenses are expected to increase due to a change in the personnel system.
Synergies from the acquisition of Tajima will be generated in earnest from the next fiscal year.
(¥ million)
A fall in costof sales+662

Operating A rise insales
income+180
2,953
Decrease insales ofequipment-440

Personnel
expenses Acquisition
expenses of-730
Tajima Stock-related Others-160expenses-215-200

Tajima+50

Operatingincome2,100Note: Positive signs show factors for an increase in income,and negative signs show factors for a decrease in income.

Increases and decreases in operating income of the Group excluding Tajima

FY12/2016(Results)

FY12/2017(Forecasts)
Copyright (c) Broadleaf Co., Ltd. All rights reserved

13

Broadleaf Co., Ltd.
3Q 2017
INVESTOR RELATIONSDividends
POINT
The annual dividend forecast is ¥22, effectively showing an increase in dividends.

Annual dividend(Payout ratio)¥22.00（78.6%）¥21.25*1(53.8%)¥12.50*1(31.2%)
Yearend

Interim

FY12/2015

Yearend¥12.50Interim¥8.75

Yearend¥11.00(Forecast)Interim¥11.00(Result)¥6.25*1*1*2¥6.25*1

FY12/2016

FY12/2017*1 Amount adjusted for the share split (1:2) with the effective date on December 17, 2016
*2 The interim dividend for FY12/2016 (factoring in the share split) comprises an ordinary dividend of ¥6.25 and a commemorative
dividend of ¥2.50.
Copyright (c) Broadleaf Co., Ltd. All rights reserved

14Appendix [Reference]

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

15Appendix 1

Corporate Name

Corporate Profile

Broadleaf Co., Ltd.

Representative Director, President and CEOKenji Oyama
Listed on

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

Founded/Established

December 2005/September 2009

Capital StockJPY 7,147 million

Business Outline

IT network system to support automotive aftermarket operators and provisionof 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)

Employee

764 persons(as of December, 31, 2016)

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

16Appendix 2Broadleaf GroupJapan Tajima Inc.
Broadleaf Co., Ltd.

 SpiralMind Co., Ltd.

100%

100%

【海外】
Overseas(China)(The Philippines)

 Broadleaf I.T.Solutions Inc.
 BLISAM TRADING CORP

100%

 博楽得信息科技 (合肥)有限

100%

50%

 北京盛源博乐信息科技有限公司

100%

: Consolidated subsidiaries. : Equity-method affiliates%: Percentage of voting rights owned

Copyright (c) Broadleaf Co., Ltd. All rights reserved17

Appendix 3

Sales Fields
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

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

Business Application Software

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

SystemSupport

NetworkService*1

PSF
Transaction- 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

Order Placement - Provision of computerized ordering system for automotive parts
and- Provision of tablet-type operation terminals to maintenance businessAcceptance*2
operators, etc
Others- Products and services other then the above*1: Payment agency service for recycled parts*2: BL Parts Order System and CarpodTab
Copyright (c) Broadleaf Co., Ltd. All rights reserved

18Appendix 4

Future Image of Broadleaf[Expansion of target markets][Evolution of services][Markets and customers]

AppliedApplication of advanced technologies
technology- Application of VR/AR, AI, etc.
(Collaboration with other industries)
servicesAutomanufacturers
Services

Distribution

MobileManufacturingservices

Tourism

Machine tools

Automotive aftermarket
business operators

Bus

Information PF

Distribution PF

Information PFFinanceBig data & analytics
Information- Auto safety and security support services
services(Collaboration with auto manufacturers)[Services]z
Cloud service & software- Business applications- Work efficiency analysis tool (OTRS)

Industry-specificsystems

Business Applications(Web Ver.)

Network/ Web services- EC sites (Buhin MAX)- B2B ordering service (BLP/CPT)[IT infrastructure]

Vehicles

GCP

Components

Information network

Histories
Internet

Auto parts distribution andsettlement services- Recycled parts market (PSN)

Platform

Overseas (components distributionnetwork & platform)

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

19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

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