Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

Contents
1.

Overview of 3Q Business Results

2.

Results Forecasts

3.

Topics‥‥‥‥‥‥ 02‥‥‥‥‥‥ 11‥‥‥‥‥‥ 16

Appendix Company Profile, Revenue Categories*Financial figures indicated in this material are based on consolidated accounting to which International Financial
Reporting Standards (IFRS) are applied. The indicated figures are rounded off.
Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

1

Contents
1. Overview of 3Q Business Results
2.

Results Forecasts

3.

TopicsAppendix Company Profile, Revenue Categories

Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

2

Chapter 1

Summary

Overview of 3Q Business Results

Progress of the business results was favorable for the cumulative third quarter, and the Company promoted digitaltransformation (DX) of customers through webinars, etc.
Revenue and profit decreased compared to previous financial year, but the progress toward full-year target isfavorable.

Businessresults

Revenue
Platform
Application

Operating profit

15,544 million yen（down 7.7% year on year）
including monthly sales of 5,331 million yen（up 6.9% year on year）
7,440 million yen（down 1.8% year on year）
8,104 million yen（down 12.5% year on year）

2,864 million yen（down 19.5% year on year）

Activities

Promoted penetration measures for DX of customers through webinars, etc.
Conducted sales activities using both online and face-to-face style. The situation of prolonged businessnegotiation continued.

Expense/Investment

Controlled cost by reducing mainly advertising expenses and operating expenses.
The development of cloud software generally progressed as planned. Strengthened the investment in order tosecure the continuity of the service.

Credit risk

Since the Company managed credit risk thoroughly, the impact of the materialization of credit risk is extremely
small.

Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

3

Chapter 1

Overview of Consolidated Business Results

Overview of 3Q Business Results

The impact of COVID-19 remained, and the trend of prolonged business negotiations continued in the third quarter (fromJuly to September)（¥ million）

Revenue

FY2020FY2019Cumulative 3Q

Cumulative 3Q

YoY change

YoY ratio

15,544

16,840-1,297-7.7%

Platform

7,440

7,579

-139

-1.8%

Application

8,104

9,261

-1,157-12.5%

Operating profit

2,864

3,558

-693

-19.5%

Profit before tax

2,815

3,523

-709

-20.1%

Profit attributable to owners of parent

1,867

2,320

-453

-19.5%

Basic earnings per share¥21.33¥26.55--

Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

4

Breakdown of Platform Sales

Chapter 1

Overview of 3Q Business Results

Monthly sales continued to increase as a whole, but Basic lump-sum sales decreased because it is linked to the number ofsoftware sales.
（¥ million）

Basic

FY2019Cumulative 3Q

Cumulative 3Q

YoY change

YoY ratio

5,497

5,684

-187

-3.3%

3,823

4,116

-293

-7.1%

lump-sum

1,584

2,012

-428

-21.3%

Monthly

2,239

2,104

+135

+6.4%

Monthly

1,674

1,568

+106

+6.8%

665

689

-23

-3.4%

PaaS/SaaS

IaaS

FY2020

EDI / Payment settlement
PSF *monthly

407

454

-47

-10.3%

BLP/CPT *monthly

258

235

+23

+9.9%

1,163

1,099

+65

+5.9%

monthly

639

517

+121

+23.5%

lump-sum

525

582

-57

-9.8%

ｰ

113

107

+6

+5.8%

7,440

7,579

-139

-1.8%

SupportSupport service
Provision of
consumables
OthersTotal
Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

*[PSF] settlement agency fee for automobile recycled parts transaction market [BLP] Usage fee for “BL Parts Order System” [CPT] Usage fee for ”CarpodTab”

5Chapter 1

Transition of Monthly Sales (Three Months)

Overview of 3Q Business Results

In addition to increase in the number of software users and support service contract ratio, deals of services related to DX also
increased（¥ million）： Basic（Monthly）[flat-rate]*：Support service and others[flat-rate]：EDI/Payment settlement[flat-rate/measured-rate]

1,819

1,767
217

226

1,609

1,636

1,656

1,693

244
172

228
195

226
213

234

231

1,745
222

217

224

241

245

265

1,193

1,213

1,217

1,242

1,248

1,281

1,305

1,327

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

FY2018

Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

FY20191,702

FY2020*The sum of PaaS/SaaS（monthly）and IaaS of Platform Basic

6

Breakdown of Application Sales

Chapter 1

Overview of 3Q Business Results

Sales in By industry and OTRS decreased because trend of prolonged business negotiations continued.
Sales in Others increased because there were big deals on equipment sales.
（¥ million）

By industry

FY2020FY2019Cumulative 3Q

Cumulative 3Q

YoY ratio

YoY change

6,489

7,788

-1,299-16.7%

5,548

6,598

-1,050-15.9%

941

1,189

-249

-20.9%

OTRS

173

282

-109

-38.6%

Others

1,442

1,192

+250

+21.0%

8,104

9,261

-1,157-12.5%

Automotive
Non-automotive

Total

Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

7

Chapter 1

Breakdown of Operating Profit

Overview of 3Q Business Results

Decline in cost of sales was limited, and even though the Company reduced SGA expenses, it was not sufficient tocompensate the decrease in revenue.
（¥million）

Operating
Profit3,558+ shows the factor of increase in profit year on year
- shows the factor of decrease in profit year on year

Decrease incost of sales+108
Decreasein sales-1,297FY2019Cumulative
3Q
Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

Decrease inadvertisingexpenses+112

Decrease inpersonnel
expenses+49

Decrease inshare-related
expenses+55

Others+279

Operating
Profit2,864

Increase inpurchase cost
- 33
Increase in amortizationof cloud software - 63

FY2020
Cumulative
3Q
8Chapter 1

Overview of Balance Sheet

Overview of 3Q Business Results

No significant changes other than increase in intangible assets gained by cloud software development investment andincrease in short-term interest-bearing debt .
（¥ million）

FY2020End of 3Q

End of
FY2019YoY change

Main factors of increase/decrease

Current assets

7,989

7,987

+2

Decrease in cash and deposits -265
Increase in operating and other receivables +341

Non-current assets

24,33523,702+634

Increase in intangible assets +1,034

32,324

31,689+635

Current liabilities

7,072

7,100

-28 Increase in short-term interest-bearing debt +1,357

Non-current liabilities

1,229

1,369

-140

Total liabilities

8,301

8,469

-168

Total shareholders' equity

24,02323,220+803

32,324

31,689+635

Total assets

Total liabilities andshareholders' equity
Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

Decrease in operating and other payables-355

Decrease in long-term interest-bearing debt -135

Recognition of profit +1,867
Dividend payout -1,146

9

Chapter 1

Overview of Cash Flow

Overview of 3Q Business Results

In addition to increase in free cash flow due to control of investment, cash and deposit balance increased due to short-termborrowing from the banks.
（¥ million）

FY2020FY2019Cumulative 3Q

Cumulative 3Q

YoY change

Main factors ofincrease/decrease

Cash flow from operating activities

2,114

1,376

+739

Decrease in operating and other receivables +62
Decrease in operating and other payables -86
Decrease in income taxes paid +507

Cash flow from investing activities-1,938-2,961+1,023

Decrease in acquisition of intangible assets +421
Decrease in acquisition of investment +985

Cash flow from financing activities-441-2,112+1,672

Increase in short-term debt +1,400

Free cash flow

176

-1,586+1,762

2,769

1,928

+841

Cash and cash equivalents

Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

10

Contents
1.

Overview of 3Q Business Results

2. Results Forecasts
3.

TopicsAppendix Company Profile, Revenue Categories

Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

11

Chapter 2

Consolidated Result Forecasts

Results Forecasts

No change to results forecasts announced on August 7, 2020（¥ million）

FY2020FY2019Full-year
forecast

Full-year
resultRevenue

21,30022,586-1,286

-5.7%

5,756

5,746

+11

+0.2%

Operating profit

3,900

4,525

-625

-13.8%

1,036

967

+68

+7.1%

Profit before tax

3,900

4,486

-586

-13.1%

1,085

962

+123

+12.8%

Profit attributable toowners of parent

2,700

3,093

-393

-12.7%

833

774

+60

+7.7%

Basic earnings per share¥30.87¥35.40

-

-

-

-

-

-

Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

YoYchangeYoY
ratio

FY2020FY2019Necessaryamountfor 4Q*

4Q
result* Calculated by subtracting the amount of cumulative 3Q from full-year result forecast

YoYchange

YoY
ratio

12

Results Forecasts by Revenue Categories

Chapter 2

Results Forecasts

No change to results forecasts announced on August 7, 2020（¥ million）

FY2020FY2019Full-year
forecast

Full-year
resultPlatforms

10,10010,192

-92

-0.9%

2,660

2,613

+47

+1.8%

Basic

7,600

7,654

-54

-0.7%

2,103

1,970

+132

+6.7%

850

920

-70

-7.6%

185

231

-46

-20.1%

Support

1,500

1,478

+22

+1.5%

337

379

-42

-11.1%

Others

150

140

+10

+6.9%

37

33

+4

+10.6%

Applications

11,20012,394-1,194

-9.6%

3,096

3,132

-36

-1.2%

9,200

10,448-1,248-11.9%

2,711

2,660

+51

+1.9%

OTRS

200

338

-138

-40.8%

27

56

-29

-51.7%

Others

1,800

1,608

+192

+12.0%

358

416

-58

-13.9%

21,30022,586-1,286

-5.7%

5,756

5,746

+11

+0.2%

EDI/Payment settlement

By industry

Total

Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

YoYchangeYoY
ratio

FY2020FY2019Necessaryamountfor 4Q*

4Q
result* Calculated by subtracting the amount of cumulative 3Q from full-year result forecast

YoYchange

YoY
ratio

13

Chapter 2

Breakdown of Operating Profit（Full-year）

Results Forecasts

While the reduction of operating expenses and general expenses would be promoted, amortization expenses of cloud softwareand R&D expenses would increase, so it would be difficult to compensate the decrease in revenue.
（¥ million）+ shows the factor of increase in profit year on year
- shows the factor of decrease in profit year on year

Operating
Profit4,525

Decrease in Decrease inpersonnel
Decrease in advertisingexpensescost of sales expenses
+51
+120
+346

Decreasein sales-1,286FY2019Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

Increase in amortizationof cloud software -160

Decrease inshare-related
expenses+55

Others+184

Operating
Profit3,900

Increase in
R&D expenses-95

FY2020（forecast）
14

Chapter 2

Dividend per ShareResults Forecasts

Year-end dividend is expected to be ¥6.60, and annual dividend is expected to be ¥13.20（¥0.20 increase year on year）

Dividend policy

Annual dividend

Annual dividend（Payout ratio）

Year-end

Interim¥12.00（39.5%）¥6.50¥13.00（36.7%）¥6.50¥13.20（42.8%）¥6.60

forecast

¥5.50

¥6.50

¥6.60

FY2018FY2019FY2020

Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

Considering to raise the target dividend
payout ratio regarding the past dividend
performance.
Reference）Current dividend policy：
Stable dividend is the basic policy, withpayout ratio of approximately 20%

15

Contents
1.

Overview of 3Q Business Results

2.

Results Forecasts

3. Topics
Appendix Company Profile, Revenue Categories

Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

16

Chapter 3

Press Releases in 2020 (1)TopicsStart of Provision of Broadleaf Cloud Platform, a Business Platform for Third Parties, to Shelf AP, which Operates Used Car
Marketplaces Using Blockchain Technology (November 4)
On November 4, 2020, Broadleaf Cloud Platform, a business digital platform developed and provided by the Company, and Shelf
AP.jp, used car marketplaces operated by Shelf AP Co., Ltd. using blockchain technology, completed system construction anddata linkage and started to provide service.
Shelf AP.jp
In the used car market, which continues to see global growth, Shelf AP.jp has introduced a distributed data structure and management method,which are features of the blockchain. Shelf AP.jp thereby increases the credibility and safety of data exchanged on the Internet and enables
cross-border transactions in real time.
Broadleaf Cloud Platform
The features of the Broadleaf Cloud Platform are the collection, high-speed search and analysis of mass data, service implementation in the
short term through a combination of business API services, and high scalability of usage.

Shelf AP Co., Ltd.
Planning, designing, development, operation and management of software, applications and platforms, etc. that use the blockchain, AI and other advanced technologies
Head office: Shinagawa Grand Central Tower 8F, 2-16-4 Konan, Minato-ku, Tokyo
CEO: Izuru Anzai
URL: https://shelfap.com/en/

Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

17

Chapter 3(For Reference) Shelf.Network

TopicsShelf AP
Shelf AP is a business base in Asia of Shelf.Network Inc., which was established in April 2019.
As one of the global partners of Shelf.Network, Shelf AP is provided with licenses for systems and operates in Asia and Oceania.

Shelf.Network
Shelf.Network, headquartered in Ukraine, was established in 2017. The head office is registered in New York.
It operates a used car distribution platform using blockchain technology. Used car sales companies, auction companies and logistics companies in North America andEurope use the platform.
Awards received
Best European Blockchain startup, GrandFrontier Innovation Award (2018), Winner of Blockshow Europe (2018),
Best real world application of Blockchain technology (2018), Top automotive re-marketing solution (2019), and many other awards
CEO Lasha Antadze
Lasha Antadze is the founder of Shelf.Network. He completed a program at Y-combinator, one of the world’s leading seed accelerators.
In 2015, at the request of the Ukraine government, he developed a platform for privatizing state assets using blockchain distributed auction technology.
Pavel Kravchenko
Pavel Kravchenko is co-founder of Shelf.Network. He earned a PhD at Kharkiv National University of Radioelectronics.
He is co-founder of Distributed Lab, a venture company that researches and develops cryptocurrency and blockchain technology in cooperation with industry,
government and academia.

Features

Shelf.Network’s distribute electronic auction system connects multiple auction systems and enables multiple marketplaces to share used car inventory information.
As a result, cross-boarder used car distribution is promoted.
Current

Shelf.Network’s
blockchain technology

SinglemarketplaceAPIplug-in

Payment
gateway

Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

After

API
plug-inMarketplaceA

Marketplace
B

Marketplace
C

Inventory
management
Payment
gateway

Inventory
management

18Chapter 3(Reference) Broadleaf Cloud Platform

Consumer

User company

TopicsMobility service users/car owners

Used car dealer(Car Seven etc.)

Shelf AP

Transportation

Zenmov inc.

Deliverycompany

Travel agency/
entertainment
company

Car sharing
company

Auto maintenancecompany

Company Company Company
XYZ.c series• • •Application
Used car marketplace

Blockchain

Operation management
platform

Traceability

EC/EDI

Third party

AI safety

Retailer/wholesaler

Payment

Broadleaf applications

AI data analysis

Interface

Infrastructure middleware
NetworkDevelopment
platform

Operational platform

Broadleaf Cloud Platform services
Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

19

Chapter 3

Press Releases in 2020 (2)TopicsDetermination of Details of Shareholder Benefits Reciprocal Agency Agreement with Genetec(November 4)
Corporation (October 6)
The shareholder benefits for the fiscal year ending Dec. 31, 2020
were determined as follows.
Number of shares held

Visa gift cards

500 to 999 shares

5,000 yen

1,000 to 1,999 shares

10,000 yen

2,000 shares or more

20,000 yen

Broadleaf and Genetec Corporation concluded a reciprocal agency
agreement for OTRS and FlexSim.
Under the agreement, the effects of improvement activities resulting
from OTRS can be simulated using FlexSim, a product of Genetec,
which can show future improvements and their purposes.

Reasons for continuously using Visa gift cards as shareholder benefits

OTRS, work analysis software

Compared to QUO cards which we previously used as the shareholder
benefits, Visa gift cards can be used in greater numbers of industries andbusiness categories. In addition, from the perspective that they can be used
in internet shopping, which are more frequently used under the influence of
COVID-19, we continued using Visa gifts cards as the shareholder benefits.

OTRS is used at many production sites as a tool for
accurate video analysis and time analysis of movementsof people, goods and machines using the IE (Industrial
Engineering) method.

Eligible shareholders

FlexSim, 3D IoT simulation software

Those shareholders whose names are recorded in the Company’s
shareholder registry as of December 31, 2020 and who hold five trading units(500 shares) or more of the Company’s shares.

FlexSim calculates flows of goods and people, using
3D graphics. FlexSim is sold worldwide, particularly
in Europe, the United States and China, throughsales channels in 77 countries or more (a total ofover 51,500 licenses).

Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

20

Chapter 3

Press Releases in 2020 (3)TopicsAn MOU Concluded with BEMAC Philippines(July 20)

BL.Homepage Premium Launched (March 2)

Broadleaf and its subsidiary BLITS concluded an MOU (memorandumof understanding) with BEMAC Philippines for building acomprehensive platform for after-sales service related to mobility inPhilippines.

Broadleaf released BL.Homepage Premium, a website building andoperation solution.

Broadleaf aims to build an infrastructure that will provide a one-stop
solution for the production, sale, inspection and maintenance of electricvehicles and the distribution of service parts for electric vehicles.

BL.Homepage Premium is a solution that enables the user to easily
open a website, a tool necessary for attracting customers andexpanding sales.

BEMAC Electric Transportation Philippines Inc.
BEMAC Electric Transportation Philippines Inc. is a subsidiary in the Philippines of
BEMAC Corporation, a marine equipment manufacturer that designs,
manufactures, installs and maintains a range of electrical equipment for large
vessels.
BEMAC Electric Transportation Philippines has developed and sells E-Trike, anelectric tricycle (tricycles are major vehicles in the Philippines). The company hasdelivered 3,000 tricycles to the government of the Philippines as of September
2019.

Prices
Initial cost
Monthly charge

100,000 yen (exclusive of tax)
19,800 yen (exclusive of tax)

URL: http://www.bemac-philippines.com/
Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

21

Contents
1.

Overview of 3Q Business Results

2.

Results Forecasts

3.

TopicsAppendix Company Profile, Revenue Categories

Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

22

Appendix

Company Profile

Corporate Name

Broadleaf Co., Ltd.

Representative

Kenji Oyama, Representative Director, President and CEO

Listed on

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

Industry

Information and communication industry

Founded/Established

December 2005/September 2009

Capital StockJPY 7,148 million (consolidated)

Fiscal Year

From January 1st to December 31st

Business Outline

The Company offers a wide range of IT services, including its independently developed business software.

Appendix

In addition to provision of business software that serves as core business systems, mainly for business operators
belonging to the automotive aftermarket sector, the Company provides diverse, unique one-stop services, including
electronic trading network for auto parts and big data analysis.
In addition, looking ahead to the evolution of the mobility society going forward, it has been conducting surveys andresearch for the commercialization of advanced technologies.
Head Office Address

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

Sales Offices

29 offices in Japan

Development Centers

3 centers in Japan (Sapporo, Tokyo and Fukuoka)

Main Subsidiaries

Tajima Inc.

Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

23

Appendix

Revenue Categories (1)Types of Service

Appendix

For a customer company, the Company provides multiple services, including business software, as a single package.
Provision of services

Customer company

Compensation for services

Broadleaf

Breakdown

Non-optional

Non-optional

Non-optional

Non-optional

Optional*2

Optional

Optional

Optional

Optional

Business software

Business software(Basic functions)

Database

Server functions

Customer support

Ink toner
Business forms

E-commerce site
for recycled
automotive parts

EDI forautomotive parts

Computers andother equipment

Type ofcompensation

Fee for purchasing
usage rights*1

Fee for purchasing
usage rights*1

Use feeUse feeUse feeFee for purchasing
products

Use feeUse feeFee for purchasing
products

Form ofpayment

Lump-sum

Lump-sumMonthlyMonthlyMonthly

Lump-sumMonthlyMonthly

Lump-sum

Service name

*1 Usage rights valid for a maximum of 6 years*2 Measures for improving the contract ratio were strengthened in the second half of 2019.

Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

Note: The range of services to be provided differs according to the type ofbusiness of customer company.

24

Appendix

Revenue Categories (2)Correspondence Relationship with Revenue Categories

Appendix

The form of payment differs according to the type of service. The correspondence relationship between the type of service
and revenue categories is as indicated below.
Services

Form of payment

Revenue Categories

アプリケーション
Applications
Fee for rights to use business software (valid
for a maximum of 6 years)

Lump-sum

By industry/OTRS[Periodic]

Fee for computers and other equipment

Lump-sum

Others[Periodic/Pay-as-you-go]

Platforms
Basic
Fee for rights to use basic functions(valid for a maximum of 6 years)

Lump-sum

PaaS/SaaS (Lump-sum)[Periodic]

Fee for use of database

Monthly

PaaS/SaaS (Monthly)[Flat rate]

Fee for use of server functions

Monthly

IaaS (Monthly)[Flat rate]

SupportFee for use of customer support

Monthly

Support Service[Flat rate]

Fee for toner/business forms

Lump-sum

Provision of consumables[Pay-as-you-go]

EDI / Payment settlement
Fee for use of e-commerce site

Monthly

PSF[Pay-per-use]

Fee for use of EDI

Monthly

BLP/CPT[Flat rate & Pay-per-use]

Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

25

Appendix

Revenue Categories (3)Contract Renewal Timing

Most customer companies choose a lease contract.
There are cases where the Company takes over the remaining lease payments as a “trade-in” before the expiration of thesoftware lease period.
In the case of a 6-year contract

Trade-inAmount recorded as revenue

Broadleaf

Lump-sum payment (Payment
for the initial contract)

Lump-sum payment (Payment for the new contract - Remaining
lease payments taken over by the Company as a “trade-in”)

Finance lease
Leasing company

Monthly payments (Payments
for the initial contract)

Monthly payments (Payments for the new contract - Remaining
lease payments taken over by the Company as a “trade-in”)“Trade-in” (remaining lease payments)
Initial contract

Contract renewed before
6 years have elapsed(Average of 5 years)

Expiration of theinitial contract

Customer company
New contract
Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

Expiration of the
new contract26

Disclaimer
Results forecasts and future predictions provided in thisdocument are the Company’s judgment based on the information
available as of the time of preparation of the document andcontain potential risks and uncertainties.
Accordingly, please understand that the actual results may differ
from the results forecasts provided here.
【Contact Information】
Broadleaf Co., Ltd.
Investor Relations Department
E-Mail：bl-ir@broadleaf.co.jp

Copyright©2020 Broadleaf Co.,Ltd. All rights reserved.

27