1Q FY12/2016
Business Results BriefingBroadleaf Co., Ltd.
TSE 1st Section: 3673

April 27, 2016

Chapter 1
Overview of 1Q Business Results

Contents

Chapter 2
Results Forecasts

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

3101

Chapter 1
Overview of 1Q Business Results

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

2

PL Summary
POINT

The recording of extraordinary income enabled net
income to return to the black.
(¥ million)

1Q FY12/2016
Results
Net sales

YoY change

1Q FY12/2015
YoY (Ratio)

Results

3,460-6-0.2%

3,467

Operating income-97-40--57

Ordinary income-98-29--69

Income before
income taxes

152

215--62

Net income

20154--134¥ 0.85¥ 6.16-¥ -5.31EPS

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

3

Sales by Category
POINT

Sales in Network Service maintained a doubledigit increase.
(¥ million)

1Q FY12/2016
Results
Business Application Software

YoY change

1Q FY12/2015
YoY (Ratio)

Results

2,011

-127

-6.0%

2,138

System Support314-2-0.9%

317

Maintenance
Provision ofConsumables

145-5-3.6%

150

169

21.4%

166

Network Service

1,13412312.2%

1,011

Stock

899

95

11.8%

804

Transaction

219

2010.0%

199

PSF*1

158-4-3.0%

162

Order Placing and Acceptance*2612468.1%36Others

158116.7%

7Net sales

3,460-6-0.2%

3,467*1: Payment agency service for recycled parts*2: BL Parts Order System and CarpodTab
Copyright (c) Broadleaf Co., Ltd. All rights reserved

4Breakdown of Sales in Business Application Software
POINT

Sales to new customers increased in both automotive
and non-automotive.
(¥ million)

1Q FY12/2016
ResultsAutomotive

YoY change

1Q FY12/2015
YoY (Ratio)

Results

1,367

-210

-13.4%

1,578

1,189-229-16.2%

1,419

178

1912.0%158

Non-automotive

378

216.1%

357

Renewed218-18-7.9%237

New customers

160

40

33.8%

119

1,746

-188-9.8%

1,935

1,407

-248

-15.0%

1,656

338

59

21.4%

278

265

6130.2%

203

2,011

-127

-6.0%

2,138

RenewedNew customers

TotalRenewed
New customers
Entrusted development
and others
Business Application
Software Total sales

Copyright (c) Broadleaf Co., Ltd. All rights reserved5Key Indicators in Network Service DomainPOINTActivities centering on marketing to boost the numberof prospective customers.
FY12/2016
End of 1Q
Results

FY12/2015

End of FY
Forecasts

End of 1Q
Results

End of FY
Results■Stock.NS ratio *1

69.1%

75.0%

62.6%

68.3%

1,763

3,000 or more

999

1,666

330

No Set figure*2

205

312

2,583

4,500

1,377

2,322

■Transactions
BL Parts Order System
Number of connections withmaintenance shops
Number of parts dealers
participating in transactions

CarpodTab
Number of contracts*1 NS ratio: Proportion of total number of contracts accounted for by current business application software. NS Series.
*2 No set figure: Since the target of 300 parts dealers has already been achieved, any further requests to participate will
be dealt with as appropriate.
Copyright (c) Broadleaf Co., Ltd. All rights reserved

6Breakdown of Expenses
POINTR&D grew stronger while expenses were optimized.
(¥ million)

1Q FY12/2016
Results

1Q FY12/2015

YoY Change

Major factors forincrease/decrease

Results

Net Sales

3,460-6

3,467 -

Cost of sales

1,049-30

1,080 Shift of staff to personnel expenses

SG&A expenses

2,508642,444 -Personnel
Expenses

1,198

32

1,165 (labor cost)

139

44

95 systems and new services

1,170-13

1,183 Decrease in advertising expenses

Operating Income-97-40

Total personnel
expenses *1,388-38

1,427 employees

Subcontract Cost

373

38

335 systems

R&D Expenses
Other

Shift of staff from cost of sales
Development of next-generation-57 Decrease in the number ofDevelopment of next-generation* Sum of labor cost (cost of sales) and personnel expenses (SG&A expenses)
Copyright (c) Broadleaf Co., Ltd. All rights reserved

7

BS SummaryPOINTDecrease in accounts receivable-trade due to seasonal
factors (sales declined QoQ in 1Q).
(¥ million)

End of 1Q FY12/2016
Change fromend of FY2015

Results
Current
AssetsNon-current
AssetsEnd ofFY12/2015
Results

Major factors forincrease/decrease
Decrease in accounts receivable-

12,406-626

13,033 trade (-790)

12,362-169

12,532 Amortization of goodwill (-167)

24,769-796

25,565 -3,994-343

4,338 (-166)

1,660

-181

1,841 (-173)

Total Liabilities

5,654-525

6,179 -

Total Net Assets

19,114-271

19,385 Dividend of surplus (-303)

Total Liabilities
and Net Assets

24,769-796

25,565 -Total Assets
Current
Liabilities
Non-current
Liabilities

Decrease in accounts payable-trade
Fall in long-term loans payable

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

8Chapter 2

Results Forecasts

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

9Results Forecasts
POINT

No change in the results forecasts for both the firsthalf and the full year.
(¥ million)

FY12/2016
Full-year
Forecasts
Net Sales

FY12/2015

YoY (Ratio)

1HForecasts

YoY (Ratio)

Full-yearResults

1H
Results

18,000

7.0%

8,400

0.9%

16,824

8,325

OperatingincomeOperatingincome margin
Ordinary
income

3,000

19.3%

1,050

4.2%

2,514

1,008

16.7%

-12.5%

-

14.9%

12.1%

2,970

19.1%

1,030

3.4%

2,493

996

Net income

1,620

29.4%

560

17.6%

1,251

476

EPS

¥66.93

32.6％¥23.1422.0％¥50.47¥18.97DPS¥30.0-¥17.5-

¥25.0

¥12.5

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

10Sales Forecasts by Category
POINT

No change in sales forecasts by category for boththe first half and the full year.
(¥ million)

FY12/2015

FY12/2016
Full-year
Forecasts

YoY (Ratio)

1HForecasts

YoY (Ratio)

Full-year
Results

11,700

3.4%

5,550

-1.7%

11,316

5,644

1,250

-1.3%

650

2.4%

1,266

634

600

0.4%

300

-0.3%

597

300

650

-2.8%

350

4.8%

668

334

5,050

19.0%

2,200

7.5%

4,242

2,046

Stock

3,550

5.9%

1,700

4.6%

3,350

1,624

Transaction

1,200

39.8%

480

17.9%

858

407

PSF

700

4.0%

330

0.4%

672

328

Order Placing andAcceptance500

169.5%

150

90.6%

18578300
18,000813.6%
7.0%

208,400

37.9%
0.9%

32
16,824

148,325

Business Application
Software
System Support
Maintenance
Provision ofConsumables
Network ServiceOthers
Net Sales

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

1HResults

11

Efforts in Network Service Domain
POINT

Greater added value of the BL Parts Order System
・ Higher order rate・ Increase in the number of
inbound cars

・ Enclosure of customers
・ Acquisition of newcustomers

Auto maintenance shops

Auto parts dealers
Inquiries about parts-BL Parts Order SystemBL Parts Order System

Does not keep
customers waiting.

POINTAutomatic response
Receipt of answers

Auto repair parts EC site “BUHIN MAX” to be launchedin May 2016

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

12Service Structure for Auto Parts Distribution
The BL Parts Order System and the BUHIN MAX site
complement each other to cover the entire supply chain,from wholesale to retail.

POINT

Maintenance shops(Buyer)Parts dealers (Supplier)
BL Parts Order System

Large shops
Linkage(Electronic order)

LinkageOur systems
Our systems
Small shops

Systems of othercompanies(mainly for smallshops)

Linkage
BUHIN MAX(EC site)

Linkage

Purchase

Acquire new customers, with the “linkage function” acting as a trigger.
Copyright (c) Broadleaf Co., Ltd. All rights reserved

13

Looking Towards the Next Decade

Consider, Connect, Communicate
FIELD FOR OUR FUTURE
Broadleaf Co., Ltd.

14

Disclaimer
Forward-looking statements contained in this material such as results forecasts
and future prospects are forecasts and estimates made by Broadleaf based on
information available at the time of the preparation of the material, and are
subject to potential risks and uncertainties. Please note that actual results maydiffer from the statements contained in this material due to various factors.

For inquiries, please contact
Corporate Communications(IR/PR) Department
Broadleaf Co., Ltd.
E-mail: broadleaf-ir@broadleaf.co.jp
URL: http://www.broadleaf.co.jp/english/

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