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

Contents
1.

Overview of 1Q Business Results2.

Impact of COVID-19

3.

Results Forecasts

Appendix‥‥‥‥‥‥ 02‥‥‥‥‥‥ 10‥‥‥‥‥‥ 13

Corporate Profile, Revenue Categories ‥‥ 18* Financial figures indicated in this material are from consolidated accounting to which International Financial ReportingStandards (IFRS) are applied. The indicated figures are rounded off.

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

1

Contents
1. Overview of 1Q Business Results2.

Impact of COVID-19

3.

Results Forecasts

Appendix

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

Corporate Profile, Revenue Categories

2

Chapter 1

Overview of Consolidated Business Results

Overview of 1Q Business Results

Revenue and profit increased despite the spread of COVID-19 which affected sales activities
during March.
（¥ million）

Revenue

FY2020FY20191Q

1Q

YoY change

YoY(ratio)

5,279

4,925

+354

+7.2%

Operating profit

610

420

+190

+45.3%

Profit before tax

627

423

+203

+48.0%

Profit attributable to ownersof parent

413

274

+139

+50.9%

¥4.72

¥3.13

-

-

Basic earnings per share

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

3

Revenue by Category

Chapter 1

Overview of 1Q Business Results

Sales of Platforms increased due to rise in the number of customers,
sales of Applications also increased due to strong equipment sales.
（¥ million）

FY2020FY20191Q

1Q

YoY change

YoY(ratio)

Platforms

2,409

2,303

+106

+4.6%

Basic

1,770

1,707

+62

+3.7%

EDI/Payment settlement

222

228

-6

-2.8%

Support

380

336

+44

+13.1%

Others37

31+6+18.5%

Applications

2,870

2,622

+248

+9.5%

2,083

2,149

-66

-3.1%

OTRS

90

121

-31

-25.5%

Others

697

352

+345

+98.0%

5,279

4,925

+354

+7.2%

By industry

Total

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4

Breakdown of Platform Sales

Chapter 1

Overview of 1Q Business Results

Monthly sales increased due to rise in the number of customers and support service contract ratio,
PSF struggled due to market factors.
（¥ million）
Basic

FY20191Q

1Q

YoY change

YoY(ratio)

1,770

1,707

+62

+3.7%

1,215

1,195

+20

+1.7%

lump-sum

489

495

-6

-1.2%

monthly

727

700

+26

+3.7%

monthly

555

512

+42

+8.2%

222

228

-6

-2.8%

PaaS/SaaS

IaaS

FY2020

EDI / Payment settlement
PSF *monthly

138

151

-13

-8.3%

BLP/CPT *monthly

84

78

+6

+8.0%

380

336

+44

+13.1%

204

163

+41

+25.0%

176

172

+3

+1.8%

37

31

+6

+18.5%

2,409

2,303

+106

+4.6%

SupportSupport service
monthly
Provision of
lump-sumconsumables
OthersTotal platform salesｰ

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Quarterly transition of Monthly Sales

Chapter 1

Overview of 1Q Business Results

Sales of Platforms Basic and Support service increased due to rise in the number of customers andstrengthening of measures for improving added value and monthly support service contract ratio,
sales of EDI / Payment settlement remained flat due to market factors.
（¥ million）

1,750

1,500
1,250

：Basic（Monthly）[flat-rate]*：Support service [flat-rate]：EDI/Payment settlement [flat-rate/measured-rate]

1,536

235
142

1,669

1,708

231

222

191

204

1,248

1,281

4Q

1Q

1,000
750
500

1,160

250
0
4Q

1Q

FY20172Q

3Q

FY2018

4Q

1Q

2Q

3Q

FY2019*sum of PaaS/SaaS（monthly）and IaaS

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

FY20206

Breakdown of Application Sales

Chapter 1

Overview of 1Q Business Results

Successful acquisition of new customers continued in the automotive sector,
sales of Others increased drastically due to strong equipment sales,
Non-automotive sector and OTRS struggled due to decrease in the number of deals and spread of
COVID-19.
（¥ million）
By industry

FY2020FY20191Q

1Q

YoY change

YoY(ratio)

2,083

2,149

-66

-3.1%

1,810

1,787

+23

+1.3%

273

362

-89

-24.6%

OTRS

90

121

-31

-25.5%

Others

697

352

+345

+98.0%

2,870

2,622

+248

+9.5%

Automotive
Non-automotive

Total application sales

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

7

Chapter 1

Breakdown of Operating Profit

Overview of 1Q Business Results

Purchase cost increased due to favorable sales of equipment,
selling, general and administrative expenses decreased due to deduction of advertising expenses
and share-related expenses.

（¥ million）

Increase in
sales
+354

Operating
Profit420

Decrease in
Decrease in share-related
advertisingexpenses
expenses+53+83+shows the factor for an increasein operating profit from the year-ago level－shows the factor for a decreasein operating profit from the year-ago level

Others+10

Operating
Profit610

Increase incost of sales Increase inpersonnel-278
expenses-32
Increase inpurchase cost
-243
Increase in amortizationof cloud software-28

FY20191Q
Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

FY20201Q
8Chapter 1

Overview of the Balance Sheet

Overview of 1Q Business Results

Intangible assets increased due to investments in cloud software development,
borrowed ¥1.7 billion from a bank, as planned from the beginning of the period.
（¥ million）

FY2020End of 1Q

End of
FY2019ChangeMain factors forincrease/decrease

Current assets

7,896

7,987

-91

Increase in cash and deposits +260
Decrease in operating andother receivables -322

Non-current assets

23,827

23,702+125

Increase in intangible assets +372

31,722

31,689+34

Total assets
Current liabilities
Non-current liabilities
Total liabilities
Total shareholders' equity
Total liabilities andshareholders' equity
Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

7,382

7,100

+282

1,350

1,369

-19

8,732

8,469

+263

22,99023,220-229

31,722

31,689+34

Increase in short-term
interest-bearing debt +1,659
Decrease in long-term
interest-bearing debt

-27

Recognition of profit +413
Dividend payout -5689

Contents
1.

Overview of 1Q Business Results

2. Impact of COVID-19
3.

Results Forecasts

Appendix

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

Corporate Profile, Revenue Categories

10Impact on our Business Activities * As of May 12

Chapter 2

Impact of COVID-19

It will take time to proceed to the closing phase of deals, because operating activities have been
restricted since late March.
Item
Presence/absence of
infection

ImpactConditions

No infected person

None of the Company’s employees and their families have been infected.
No one has been infected in the buildings where the head office, branches and sales offices are located.

Overall operations

Unaffected

On April 8, seven business locations in Japan shifted to a system under which employees work from home.
On April 17, that system was expanded to 12 business locations in Japan, and teleworking was recommended at
the remaining 17 business locations.
Institutional support for employees’ livelihood, including enhancement of the internal financing system.

Customers’ conditions

Partially reduced

Most customer companies continue operating (excluding bus operators and some other customers).
Demand for automotive maintenance will concentrate in June and later months due to the special measure on
automobile inspection.

Limited reduction

The Company will basically continue to experience demand, because it provides mission-critical systems, which
are essential for business continuity.
There was an increase in the number of users of online services (such as the e-commerce site for consumables
and SMS service).

Sales activities

Mostly online

Salespersons and the contact center are continuing sales activities mainly by telephone and e-mail.
Restrictions on outings were tightened in late March. This has made it difficult to carry out face-to-face sales
activities. Closing a deal tends to take time.
There are cases in which a salesperson visits a customer company upon approval from the company.

Procurement

Mostly unaffected

Most equipment, such as computers for sale, and office supplies are procured as usual, although there are delaysin the arrival of some models of equipment.

Development

Unaffected

While there are delays at some contractors, they are within a range that permits recovery. Release of the new
product (cloud software) is expected to be carried out as planned.

Financial activities

Unaffected

The Company borrowed 1,700 million yen from a bank in 1Q (as planned in the beginning of the fiscal year).
Increase of debt collecting risks is not expected at present, because most customer companies are continuing
operations.

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

11

Chapter 2*As of May 12.

Impact on Consolidated Financial Results Applies if the state of emergency

Impact of COVID-19

is lifted on May 31.

While reduction of demand is limited, there tends to be a delay in transition to the closing
phase of a deal. While partial reduction of advertising expenses and reduction of spending
associated with restrictions on activities are expected, additional costs, including costs needed
for teleworking, were generated.
◼ Impact on the top line
Item
Delays in monetary terms in 1Q

Comments
There were delays in the transition to the closing phase of deals, whose business scale is around 400
million yen. Most became visible in March.

Under the state of emergency (April and May), impacts that are similar to the ones generated in March are
Delays in monetary terms that are expected in 2Q likely. At present, it is difficult to forecast how far losses from these impacts can be compensated for in
June alone.
Delays in monetary terms that are expected in the There is a risk that deals carried over from the first half could cause further delays in expected deals in thesecond halfsecond half.
◼ Impact on costs
Item

Comments

Reduction in expenses in 1Q (including operating
expenses)

The 58 million yen (reduction in advertising expenses) contributed to an increase in profit due to thecancellation of a large-scale trade show (IAAE).

Additional costs in 1Q (including expenses foraddressing COVID-19)

None

Recording of costs delayed from 1Q to 2Q

35 million yen in overall SG&A expenses

Increase/decrease of costs in 2Q and thereafter

Forecasts on additional costs (including expenses for addressing COVID-19) and a reduction in spending(including expenses for activities) in 2Q and thereafter are being created.

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

12

Contents
1.

Overview of 1Q Business Results2.

Impact of COVID-19

3. Results Forecasts
Appendix

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

Corporate Profile, Revenue Categories

13

Chapter 3

Result Forecasts

Results Forecasts

No change to results forecasts (announced on February 14, 2020) due to the uncertainty of the
impact of COVID-19 at this point, prompt disclosure will be conducted when any change occurs.
（¥ million）

FY2020 FY2019
YoY
Full-yearchangeforecasts Full-year

FY2020 FY2019
1H
forecasts
1H

YoY(ratio)YoYchangeYoY(ratio)Revenue

22,70022,586

+114

+0.5%

11,20011,072

+128

+1.2%

Operating profit

4,600

4,525

+75

+1.7%

2,000

2,080

-80

-3.8%

Profit before tax

4,600

4,486

+114

+2.6%

2,000

2,075

-75

-3.6%

Profit attributable toowners of parent

3,100

3,093

+7

+0.2%

1,300

1,361

-61

-4.5%

Basic earnings per share¥35.46¥35.40--¥14.87¥15.59--Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

14

Sales Forecasts by Revenue Categories

Chapter 3

Results Forecasts

No change to sales forecasts by revenue categories (announced on February 14, 2020)（¥ million）

Platforms

Basic

FY2020 FY2019
FY2020 FY2019
YoY
YoY
YoY
YoY
Full-year
1H
change (ratio)change (ratio)
forecasts Full-year
forecasts
1H
10,50010,192+308 +3.0%
5,150
4,948
+202 +4.1%

7,850

7,654

+196

+2.6%

3,850

3,717

+133

+3.6%

950

920

+30

+3.3%

450

455

-5

-1.0%

Support

1,500

1,478

+22

+1.5%

750

706

+44

+6.2%

Others200

140+60 +42.6%

100

70

+30 +42.5%

Applications

12,20012,394

-194

-1.6%

6,050

6,123

-73

-1.2%

10,00010,448

-448

-4.3%

4,850

5,173

-323

-6.2%

OTRS

350

338

+12

+3.6%

150

208

-58

-27.7%

Others

1,850

1,608

+242 +15.1%

1,050

743

22,70022,586+114

11,20011,072

EDI/Payment settlement

By industry

Total

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

+0.5%+307 +41.4%
+128

+1.2%

15

Chapter 3

Breakdown of Operating Profit（Full-year）

Results Forecasts

Operating profit is expected to increase by improving business efficiency which will offset higher
expenses.
（¥ million）+shows the factor for an increasein operating profit from the year-ago level－shows the factor for a decreasein operating profit from the year-ago level

Increasein sales+114

Operating
Profit4,525

Decrease inadvertisingexpenses+108

Increase incost of sales-106
Decrease in development
subcontract cost+200
Increase in amortizationof cloud software-160

FY2019Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.

Increase inpersonnel
expenses-63

Decrease inshare-related
expenses+55

Others+35

Operating
Profit4,600

Increase in
R&D expenses-68

FY2020（forecast）
16

Chapter 3

Dividend per ShareResults Forecasts

No change to dividend forecasts (announced on February 14, 2020)

Annual dividend（Payout ratio）

Year-end

Interim¥12.00（39.5%）

¥6.50

¥5.50

FY2018

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

¥13.20（37.2%）¥13.00（36.7%）

Year-end

Interim

¥6.50

¥6.50

FY2019Year-end

Interim

¥6.60

¥6.60

FY2020（forecast）
FY2020（予想）17Contents
1.

Overview of 1Q Business Results2.

Impact of COVID-19

3.

Results Forecasts

Appendix

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

Corporate Profile, Revenue Categories

18Appendix

Corporate 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)

Founded/Established

December 2005/September 2009

Capital StockJPY 7,148 million (consolidated)

Business Outline

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

Appendix

In addition to providing business software that serves as core business systems, mainly for business operators
belonging to the automotive aftermarket industry, the Company provides diverse, unique one-stop services,
including a network for the electronic trading of automotive 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)

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

19

Appendix

Revenue Categories (1)Types of Service

Appendix

For a customer company, the Company provides multiple services, including business software, asa 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.

20Appendix

Revenue Categories (2)Correspondence Relationship with Revenue Categories

Appendix

The form of payment differs according to the type of service. The correspondence relationshipbetween 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.

21

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.

22