3Q FY12/2015
Business Results BriefingBroadleaf Co., Ltd.
TSE 1st Section: 3673
October 30, 2015

Chapter 1
Overview of 3Q FY12/2015 Business Results
Chapter 2
Results Forecasts for FY12/2015

29Contents
Chapter 315

Latest Topics
Chapter 4
For Sustainable Growth

Appendix

Basic Informationon the Company,
Other Information

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

18251

Chapter 1
Overview of 3Q FY12/2015 Business Results

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

2

Chapter 1
Overview of 3Q FY12/2015 Business Results

Overview
POINT

Priority issues were solved in 3Q.

ResultsNet sales¥12,116 million (down 11.8% year on year)
Operating income¥1,270 million (down 56.7% year on year)
The results were roughly on a par with the progress assumed forachieving full-year targets.

Business situation(Sales)
New products were released, and sales were normalized.
(Development)
A new function of the BL Parts Order System, whose development wasdelayed in 2Q, started to be shipped in September.

Full-year forecast

The full-year results forecast remains unchanged.

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

3

Chapter 1
Overview of 3Q FY12/2015 Business Results

PL Summary (3Q YTD)
POINT

Both sales and income declined from a year ago,but results were roughly as expected.

(¥ million)

3Q FY12/2015
Results

3Q FY12/2014

YoY Change

YoY (Ratio)

Results

Net Sales

12,116-1,616-11.8%

13,733Operating Income

1,270-1,664-56.7%

2,934

Ordinary Income

1,249-1,652-56.9%

2,901

559-973-63.5%

1,533

Net Income

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4

Chapter 1
Overview of 3Q FY12/2015 Business Results

Sales by Category (3Q YTD)
POINT

Sales in Business Application Software declined,
but sales in Network Service continued to rise.
3Q FY12/2015

3Q FY12/2014(¥ million)

Results

YoY Change

YoY (Ratio)

8,035-1,920-19.3%

9,956

System Support944-24-2.5%

969

Maintenance450-12-2.7%

463

Provision of Consumables

494-12-2.4%

506

3,135

328

11.7%

2,807

2,480

270

12.2%

2,210

654

58

9.8%

596

PSF*1

502-8-1.7%

511

Order Placing and Acceptance, etc.*2152

66

78.5%

85

12,116-1,616-11.8%

13,733Business Application Software

Network ServiceStockTransaction

TotalResults*1: Payment agency service for recycled parts*2: BL Parts Order System, Carpod Tab, etc.
Copyright (c) Broadleaf Co., Ltd. All rights reserved.

5

Chapter 1
Overview of 3Q FY12/2015 Business Results

Strategy to Increase Order Transactions
POINT

The BL Parts Order System continues to steadily penetrate the auto parts
distribution market.

Parts dealers / maintenance shops

Carpod Tab

Number of connections with maintenance shops

Number of Carpod Tab contracts

999493111514

112

559

121

679

1,959

1,491

Number of parts dealers participating in transactions

1,679

1,113
1,265

797
662

144

161

205

249735879

1,377

1,015288

2013/12末
2014/3末
2014/6末
2014/9末
2014/12末
2015/3末
2013/12end 2014/3
end 2014/6
end 2014/9
end 2014/12
end 2015/3
end 2014/3
end 2014/6
end 2014/9
end 2014/12
end 2015/3
end 2015/6末
2015/6 end2015/9末
2015/9 end 2013/12
2013/12末
2014/3末
2014/6末
2014/9末
2014/12末
2015/3末
2015/6末
end 2015/6
end 2015/9末
2015/9 end

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

6Chapter 1
Overview of 3Q FY12/2015 Business Results

Breakdown of Expenses (3Q YTD)
POINT(¥ million)

R&D expenses rose,reflecting enhanced system development.
3Q FY12/2015
Results

3Q FY12/2014

YoY ChangeRemarks

Results

Net Sales

12,116-1,616

13,733 -Total Cost

10,84647

10,798 -Total Personnel
Expenses*

4,184-68

4,253 -

R&D Expenses

32099

220 services

Advertising Expenses

236

18

6,104-1

217 cost

6,106 -

1,270-1,652

2,934 -

Other

Operating Income

Development of new functions andIncrease in commercial exhibition* Sum of labor cost included in production cost and personnel cost included in SG&A expenses

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

7Chapter 1
Overview of 3Q FY12/2015 Business Results

BS Summary
POINT

Carried out retirement of treasury stock (May 15)
and acquisitions of common stock (August 3-October 19).

(¥ million)

End of 3Q FY12/2015
Results

Change fromend of FY2014

End ofFY12/2014

Remarks

Results

Current Assets

12,346-3,194Non-current
Assets12,542-259

24,889-3,454

Current Liabilities

3,922-2,813

Current portion of long-term loans payable （-126）
6,736 Decrease
in income taxes payable （-1,571）

Non-current
Liabilities

1,994

1,681

313 Increase in long-term loans payable （＋1,683）

Total Liabilities

5,916-1,132

Total Net Assets

18,972-2,321of treasury stock （-1,430）
21,294 Retirement
Purchase of treasury stock （-939）

Total Liabilities andNet Assets

24,889-3,454

28,343 -Total Assets

15,541 Decrease in cash and deposits （-3,062）
12,802 Decrease in goodwill （-501）
28,343 -7,049 -

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8

Chapter 2
Results Forecasts for FY12/2015

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9

Chapter 2
Results Forecasts for FY12/2015[Year-on-year Comparison] PL Summary (FY12/2015)
POINT

The results forecasts announced
on July 9 remain unchanged.

(¥ million)

FY12/2015
Forecasts*

YoY Change

FY12/2014
YoY (Ratio)

Results

Net Sales

17,700-1,194-6.3%

18,894

Operating Income

2,500-1,665-40.0%

4,165

Ordinary Income

2,450-1,648-40.2%

4,098

Net Income

1,200-993-45.3%

2,193* Announced on July 9, 2015
Copyright (c) Broadleaf Co., Ltd. All rights reserved.

10Chapter 2Results Forecasts for FY12/2015[Year-on-year Comparison] Sales by Category (FY12/2015)
POINT

The sales by category forecast announced
on July 31 remains unchanged.

(¥ million)

FY12/2015

FY12/2014

Forecasts*

YoY Change

YoY (Ratio)

Business Application Software

12,150-1,668-12.1%

13,818System Support

1,250-40-3.1%

1,290

Maintenance

600-14-2.4%

614

Provision of Consumables

650-25-3.8%

675

4,300

514

13.6%

3,785

3,350

366

12.3%

2,983

950

148

18.5%

801

PSF

650-30-4.4%

680

Order Placing and Acceptance, etc.

300

178146.4%

121

17,700-1,194-6.3%

18,894

Network Service
StockTransaction

TotalResults* Announced on July 31, 2015
Copyright (c) Broadleaf Co., Ltd. All rights reserved.

11Chapter 2
Results Forecasts for FY12/2015[Year-on-year Comparison] Sales by Category(October-December)
POINT

Sales are expected to rise, reflecting the release of a new function ofthe BL Parts Order System and the normalization of the sales system.

(¥ million)

FY12/2015
4Q Forecasts *Business Application
Software
System Support

YoY (Ratio)

4Q Results

252

6.5%

3,861305-15-5.0%

320-2-1.7%

151-13-7.9%

169

186

19.1%

977

96

12.5%

772

89

43.6%

205

-21-12.9%

168

111

304.7%

36

422

8.2%

5,160

149

Provision of Consumables

155
1,164

Stock

869

Transaction

295
PSF

147

Order Placing and Acceptance, etc.

147

Total

YoY Change

4,114

MaintenanceNetwork Service

FY12/2014

5,583* The difference between the full-year forecast by category announced on July 31, 2015 and the 3Q YTD result
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12

Chapter 2Results Forecasts for FY12/2015

Dividends per SharePOINT

The year-end dividend per share for
FY12/2015 is forecast to be 12.5 yen.
25 yen(51.7%)

Annual Dividend(Payout ratio)

20 yen(26.0%)

20 yen(23.8%)
Year10 yenend

Year12.5 yen (Forecast)end

Year20 yenend
Interim 10 yen

FY12/20132013/12期

FY12/20142014/12期

Interim 12.5 yen

FY12/2015
2015/12期(Forecast)

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

13

Chapter 2
Results Forecasts for FY12/2015

Completion of Acquisition of Common StockPOINT

The acquisition of Common stock under the resolution ofthe Board of Directors on July 31 was completed.

(1) Type of stock acquired: Common stock(2) Total number of shares acquired: 760,000(percentage in total number of shares outstanding(excluding treasury stock): 3.04%)(3) Total value of shares acquired: 924,469,200 yen(4) Period of acquisition: August 3, 2015 – October 19, 2015

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

14

Chapter 3
Latest Topics

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15

Chapter 2
3
Latest Topics

Initiatives to Expand the Customer BasePOINT

The Company is promoting initiatives to expand thecustomer base and the growth of the BL Parts Order System.

Existing users
Renewing
licenses

New users
Gaining newusers
AlliancesCar-unselor

Expanding the customer basePromoting the use ofthe BL Parts Order System
Copyright (c) Broadleaf Co., Ltd. All rights reserved.

16Chapter 3
Latest Topics

Development of Operations in the ASEAN Region
POINT

The Company plans to create a joint venture for the distribution of auto parts
with a major insurance company in the Philippines and to establish a platform
for the distribution of parts in the entire ASEAN region.

The Philippines(from 2016)

The entire ASEAN region(in the future)

Establishing a scheme (EC) to sell recycled parts, genuine parts,and superior parts early, using the distribution scheme of a local
insurance company with which the Company will form an alliance.
(A joint venture is planned to be established in December 2015.)

Planning to use the scheme in the entire
ASEAN region (including Thailand andIndonesia).

Auto parts DB

Auto parts DB

Building a large DB for use in the entire ASEAN region
through sales of auto parts in the Philippines.
(A wholly-owned local subsidiary of BL is planned to beestablished in December 2015.)
Copyright (c) Broadleaf Co., Ltd. All rights reserved.

17

Chapter 4
For Sustainable Growth

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18

Chapter 4
For Sustainable Growth

Progress of the Mid-Term Management Plan (2014-2016)POINT

The Company is working out a new Mid-Term Management Plan(from 2016) based on actual results and the progress ofstrategies and initiatives.

FY2014(previous fiscal year)

FY2015(this fiscal year)

Net sales Forecast ¥19,000 m

Net sales Initial forecast ¥19,600 m

Result ¥18,894 m
Business Application Software +System Support
Achievement rate

100.7%

Revised forecast ¥17,700 m

88.7%

Network Service
Achievement rate

94.6%
OperatingincomeLow level of use oftransactions

Forecast ¥4,000 m
Result ¥4,165 m

Net sales Target in Mid-Term
Management Plan ¥22,500 m

Business Application Software +System Support
vs. Initial forecast

Achieved

FY2016

Sluggish business activities
due to a delay indevelopment

Network Service
vs. Initial forecast

95.6%
OperatingincomeA delay in the developmentof a new system of BL
Parts Order System

Initial forecast ¥4,600 m
Revised forecast ¥2,500 m

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

(New) Mid-Term
Management Plan (from 2016)
New strategies, initiatives, and mid-termtargets are planned to be announced.

Operating Target in Mid-TermincomeManagement Plan ¥7,000 m19

Chapter 4For Sustainable Growth

Direction of a New Mid-Term Management Plan
POINT

Accelerating the implementation of growth strategies, making themost of our strengths in the automotive aftermarket.
Stable revenue base

30,000 companies
as customers

A track record ofover 30 years
In-housedevelopment ofsystems

Largest share ofbusiness applications
marketIndustry-standard
parts codes

No. 1 database

Growth opportunities thatcompetitors do not have
Information businessInformation service
Parts distribution business
Parts distribution service
Electronic order placement andacceptance system

Stable revenue baseDirect marketing
nationwide

Relations of trustwith customers

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Software businessBusiness applications
20

Chapter 4For Sustainable GrowthBusiness Areas in Growth Strategies
POINT

Redefining the order of the importance and priority of strategies
and initiatives while following the existing management policy.
Information businessInformation service-Adding value to information on auto parts, etc.

Parts distribution business
Parts distribution service-E-commerce of auto parts in Japan and overseas, etc.

Electric order placement andacceptance system-BL Parts Order System, etc.

Software businessBusiness applications-Selling business applications and providing additionalservices, etc.

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

21

Chapter 4
For Sustainable Growth

Image of Future Growth
POINT

Increasing the speed and flexibility of the implementationof strategies and accelerating growth.
‒ Basic policies ‒Information business
Launching and monetizing
new services

Parts distribution service
Accelerating the monetization ofthe service as a growth field

Software businessStable revenue baseExpanding targets

Note: The graph above shows an impression only.

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

22

Chapter 4
For Sustainable Growth

Policy on the Development of Next-Generation
Business Applications
POINT

Planning to change the composition of the functions of businessapplications to increase the speed of the development ofservices and reduce maintenance costs.

Image of existing applications(Functions are implemented for each application)
AP(Business type A)

AP(Business type B)

AP(Business type C)

Business type A

Business type B

Business type C

Sales
management

Sales
management

Customermanagement

Customermanagement

Sales
management

Automobile
management

Automobile
management

Customermanagement

Authentication

Authentication

Authentication

Licensemanagement

Licensemanagement

Licensemanagement

Sessionmanagement

Sessionmanagement

Sessionmanagement

Data access

Data access

Data access

Process
management

Process
management

Process
management

Image of next-generation applications(Combinations of common modules)
Functions unique to business types
Business type
A

Business type
B

Common baseBusiness typeC

Common core

Authentication
Sales
management

Customermanagement

Automobile
management

Licensemanagement

Foundation
Sessionmanagement

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Data access

Process
management

23Chapter 4
For Sustainable Growth

Announcing a New Mid-Term Management PlanPOINT

The details of a new mid-term management plan (from 2016)
will be announced in February 2016.

Strategies

Development investment

Organization

Numerical targets, etc.

- Period, market strategy, merchandise strategy, financial strategy- Business portfolio, earnings model- Next-generation business application development plan
- Plan to promote new businesses- Development of business promotion systems (sales and development,administration and planning)- Plans for hiring human resources (development, sales, and planning) andcultivating them
- Numerical targets (KGI, KPI)
- Shareholder return policy

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24Appendix [Reference Material]

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25

Appendix 1

Basic Information on the Company

Our Profile
Under our principle of maintaining a spirit of gratitude and happiness, we will continue
to grow as an integrated service provider that supports enriched car lives and people’s
lives by contributing to the automotive aftermarket with the power of IT and people.
Corporate Name:

Broadleaf Co., Ltd.

President and CEO:Kenji Oyama

Stock Listing:

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

Founded/Established:

December 2005/September 2009

Capital Stock:¥7,147 million

Business Outline:

Provision of services on an IT network system that supports the business of the players in
the automotive aftermarket(E.g. development of business applications, platform for collaboration between different
business sectors, marketplace for recycled auto parts, and automotive content）

Head Office Location:

Floor 8, Glass Cube Shinagawa, 4-13-14, Higashi-Shinagawa,Shinagawa-ku, Tokyo

Business Offices:

33 offices in Japan

Development Centers:

3 centers in Japan (Sapporo, Tokyo and Fukuoka)

Number of Employees: 815(as of June 30, 2015)
Copyright (c) Broadleaf Co., Ltd. All rights reserved.

26

Basic Information on the Company

Appendix 2Sales Domain
We have a single business segment, which consists of IT services,
but sales are classified into the areas below.
Large
Classification

Category
MiddleClassification

Small
Classification

Type of Business- Development and sales of business application software for specific businesses.
- Development and sales of package software, such as information security.
- Purchase and sales of PCs and printers, etc., and others

Business Application Software

Maintenance- Provision of maintenance services for business application software and hardware tocustomers to which we sold business application software.

Provision of Consumables- Purchase and sales of special ledger sheets and OA supplies used in businessapplication software.

System Support

Database Provisioning
Service- Provision of automobile-related information and a database of parts-related
information updated daily.

Server Provisioning
Service- Receipt of consideration for server maintenance necessary for the use of network
systems.

Payment Agency Servicefor Recycled Parts- Operation of “Parts Station NET,” a distribution network for recycled parts that sharesinformation on the inventories of recycled parts.
Providing payment agency services when selling and purchasing recycled parts andcollecting commissions.

Stock

Network Service
Transaction

Electronic parts order placing
and acceptance system,- Provision of an electronic order placing and acceptance system for auto parts.
tablet-based business- Provision of tablet-based business terminals to maintenance shops, etc., and others
support tools and others

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27

Appendix 3

Others

Efforts of “Car-unselor in Your Town”
1) Easy-to-understand explanations
2) Short waiting time3) Abundant selection of parts toselect from4) Dependable technical capabilities
5) Convincing price218

Car owners
188
160
140

Services

Maintenance shops
64
Solutions
Training
Advertising support
Provision of tools
Consulting

24

Jun
2014
Copyright (c) Broadleaf Co., Ltd. All rights reserved.

Sep

Dec

Mar

Jun

Sep

2015
28

Disclaimer
Forward-looking statements contained in this material such as results
forecasts and future prospects are forecasts and estimates made byBroadleaf based on information available at the time of the preparation of thematerial, and are subject to potential risks and uncertainties. Please note that
actual results may differ from the statements contained in this material due tovarious factors.
For inquiries, please contact
Planning Department (Investor Relations)
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.