3Q FY12/2018

Business Results Briefing
Broadleaf Co., Ltd.
TSE 1st Section: 3673

November 2, 2018
Broadleaf Co., Ltd. All rights reserved.

Contents

Chapter 1: Overview of 3Q Business Results

1Chapter 2: Results Forecasts

8

Appendix: Corporate Profile, Sales Fields, etc.

13

Note: Under IFRS, figures smaller than the units of display are rounded off. Under
Japanese accounting standards, figures smaller than the units of display are omitted.

Broadleaf Co., Ltd. All rights reserved.

1

Chapter 1 Overview of 3Q Business Results

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Chapter 1 Overview of 3Q Business Results
2

PL Summary (Consolidated, IFRS)
Achieved a significant increase in both revenue and profit.
Progress in view of the full-year forecasts is also steady.
FY2018(¥ million)

FY20173Q(Jan-Sep)

YoY (Ratio)

ProgressRatio

YoY (Ratio)

3Q(Jan-Sep)

Revenue

15,104+21.0%+71.2%

5,014

9.9%

12,487

4,561

Operatingprofit

2,706+48.8%+69.4%

1,164

29.2%

1,819

900

Profit1,745+50.7%+69.8%

747

24.7%

1,159

599

EPS (*)¥19.94+52.4%---¥13.08-3Q* Calculated assuming that the stock split (1:2) which took effect on April 1, 2018 was carried out at the beginning of FY12/2017.

Broadleaf Co., Ltd. All rights reserved.

3Q

Chapter 1 Overview of 3Q Business Results
3

Sales by Category (Consolidated, IFRS)Sales of Business Application Software increased significantly and revenue in other areas also rose fromthe same period of the previous year.
FY2018(¥ million)

YoY (Ratio)

3Q(Jan-Sep)

3,228+11.5%

7,783

2,894

+5.7%

329

+5.1%

926

313

456

+10.3%

166+15.2%

414144

523
4,301
3,519

+2.1%
+13.8%+16.6%

164
1,457
1,185

-3.4%
+7.6%
+8.1%

512
3,779
3,017

169
1,354
1,096

692

-1.8%

239

+0.7%

704

237

PSF

467

-3.1%

164

-0.4%

482

164

Order Placement andAcceptance

224

+0.9%

75

+3.2%

222

73

91

+59.3%

33+58.3%

57

21

15,104+21.0%

5,014

+9.9%

12,487

4,561

3Q(Jan-Sep)

YoY (Ratio)

9,824+26.2%

System Support

979

MaintenanceBusiness Application Software

Provision of Consumables
Network Service
Stock
Transaction

OthersTotal

FY2017
3Q

3Q

Note: Tajima Incorporated was acquired and made a subsidiary of Broadleaf as of July 25, 2017, and the contribution of its net sales to the results of thenine months of FY2017 is for two months from August to September.

Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of 3Q Business Results

Sales by Category (Non-Consolidated, Japanese Standard)

4

Significant increase in sales in Broadleaf non-consolidated Business Application Software.
Revenue in other areas also rose from the year-ago period.
（百万円）(¥ million)

FY2018FY20173Q (Jan-Sep)

3Q(Jan-Sep)

YoY ChangeYoY (Ratio)

8,655

7,492+1,163+15.5%

System Support

918

911+7+0.8%

Maintenance441

411+29+7.2%

Provision of Consumables

477

499-22-4.4%

Network Service

3,891

3,670+221+6.0%

Stock

3,108

2,910+198+6.8%

691

704-12-1.8%

PSF

467

482-14-3.1%

Order Placement and Acceptance224

222+2+0.9%

Others9156+35+62.5%

13,465

12,073+1,392+11.5%

Business Application Software

Transaction

Total

Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of 3Q Business Results

Breakdown of Sales in Business Application Software(Non-Consolidated) (Japanese Standard)

5Broadleaf non-consolidated user renewals in the automotive sector were the driving force.

(¥ million)

FY2018FY20173Q (Jan-Sep)

3Q (Jan-Sep)

YoY Change

YoY (Ratio)

Automotive

6,540

5,507

+1,033+18.8%

Renewed

5,926

4,813

+1,114+23.2%New customers

613

694-80-11.6%

Non-automotive

1,386

1,237

+149

+12.1%

Renewed939

852+88+10.4%

New customers

446

386+61+15.9%

Others728

748-19-2.6%

8,655

7,492+1,163+15.5%Total

Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of 3Q Business Results

Breakdown of Increase/Decrease in Operating Profit(Consolidated, IFRS)

6

Effects of the revenue increase of Broadleaf exceeded a rise in cost and operating profit grew substantially.
(¥ million)

A rise in sales+1,392A rise incost of sales-93

OperatingProfit
1,819

9 monthsof FY2017

A rise inpersonnel
expenses
A rise in-149
share-related A rise in
expenses other SG&A
expenses-139-64

Broadleaf Non-consolidated
Broadleaf Co., Ltd. All rights reserved.

Tajimaoperating profit+29

OperatingProfit
2,706
Consolidated
adjustment-88

9 months ofFY2018

Chapter 1 Overview of 3Q Business Results
7

BS Summary (Consolidated, IFRS)
Decline in cash and deposits due to acquisition of own shares and dividend payout, etc.

(¥ million)

FY2018End ofEnd of 3Q

FY12/2017

Main Factors for
Increase/Decrease
YoY Change

Current Assets

9,479

11,400-1,921 Decrease in cash and deposits(-1,597)

Non-current Assets

17,678

16,663+1,015 Increase in intangible assets(+1,024)

Total Assets

27,15628,063-907‒

Current Liabilities

6,770

7,478-708

‒

432

848

7,202

8,326

Non-current Liabilities

Total Liabilities
Total Shareholders'Equity
Total Liabilities andShareholders' Equity-416 Decline in long-term interest-bearing debt‒

-1,123

19,954

19,737+217

27,15628,063-907(-363)

Recognition of profit
Decrease by purchase of treasury shares
Decline due to dividend payout

Broadleaf Co., Ltd. All rights reserved.

(+1,745)(-1,006)(-967)‒8

Chapter 2 Results Forecasts

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Chapter 2 Results Forecasts
9Results Forecasts (Consolidated, IFRS)
Aims for steady achievement of full-year forecasts
FY2018(¥ million)
Full-yearForecasts

YoY (Ratio)

FY2017

Amount Requiredfor 4Q

YoY (Ratio)

Full Year

4Q(full-year forecast less3-quarter total)

Revenue

21,200+16.5%

6,096

+6.8%

18,195

5,708

Operating profit

3,900+29.5%

1,194+0.2%

3,011

1,192

Profit2,500+29.4%

755-2.5%

1,932774

EPS (*)¥28.5831.0%--¥21.81-* Calculated assuming that the stock split (1:2) which took effect on April 1, 2018 was carried out at the beginning of FY12/2017.

Broadleaf Co., Ltd. All rights reserved.

Chapter 2 Results Forecasts
10Sales Forecasts by Category (Consolidated, IFRS)
Aim for achievement of forecasts with a focus on the sales of Business Application Software(¥ million)
Full-year
Forecasts
Business Application
Software

FY2018Amount Requiredfor 4Q
YoY (Ratio)
YoY (Ratio)(full-year forecast less3-quarter total)

FY2017Full-year
Results

4Q

13,960

18.9%

4,136

4.6%

11,737

3,954

1,310
580

3.7%
4.4%

331
124

-2.0%
-12.7%

1,264
556

338
142

730

3.1%

207

5.7%

708

196

PSF

5,930
4,820
960
650

14.2%
15.4%
2.3%
1.2%

1,629
1,301
268
183

15.1%
12.2%
14.5%
13.9%

5,194
4,177
939
642

1,415
1,160
235
161

Order Placement andAcceptance

310

4.6%

86

15.8%

296

74

150
21,200

92.2%
16.5%

59
6,096

183.4%
6.8%

78
18,19521
5,708

System Support
Maintenance
Provision ofConsumables
Network Service
Stock

Transaction

Others
Total

Broadleaf Co., Ltd. All rights reserved.

Chapter 2 Results Forecasts

Breakdown of Increase/Decrease in Operating Profit(Consolidated, IFRS)

11

In addition to the effects of the revenue increase of Broadleaf, Tajima also contributed to the profit increase.
(¥ million)

A rise in sales+1,580Operating
Profit3,011

FY2017Full-year

A rise incost of sales-274

A rise inpersonnel
expenses-199

Operating
Profit3,900

Tajimaoperating profit+182
A rise inshare-related A rise in
expenses other SG&A
expenses-170-186

Broadleaf Non-consolidated
Broadleaf Co., Ltd. All rights reserved.

Consolidated
adjustment-44

FY2018Full-year Forecasts

Chapter 2 Results Forecasts
12Dividends
No change has been made to the dividend forecast.

Annual dividend(Payout ratio)

Year-end

Interim¥10.625(53.8%)¥6.25¥4.375FY2016¥11.00(50.4%)

Year-end¥5.50

Interim¥5.50¥12.00(42.0%)

Year-end¥6.50(Forecast)Interim¥5.50(Fixed)FY2017FY2018(Forecast)

Note: Amount after adjustment for the stock split (1:2) on the effective dates of December 17, 2016 and April 1, 2018

Broadleaf Co., Ltd. All rights reserved.

13

Appendix
Corporate Profile, Sales Fields, etc.

Broadleaf Co., Ltd. All rights reserved

Appendix 1Corporate Profile

Corporate Name14

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 7,148 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

30 offices in Japan (as of October, 31, 2018)

Development Centers

3 centers in Japan (Sapporo, Tokyo and Fukuoka)

Broadleaf Co., Ltd. All rights reserved.

Appendix 215

Sales Fields
Although the Company is in a single segment of IT services businesses,
we have adopted the following classifications by business area
Classification
Major
category

Mediumcategory

Smallcategory- 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

SystemSupportDetailed businesses

Maintenance- Business application maintenance service to the Company’s Business Application
Software customers and provision of hardware maintenance services

Provision of consumables- Purchase and sale of exclusive forms and OA supply goods to be used for thebusiness 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
PSF

Network
Services
Transactions

Others- Operation of recycled parts distribution network “Parts Station NET” that sharesinventory information on recycled parts
Collecting fees as transaction amount settlement agency for parts dealing- Provision of computerized ordering system “BL Parts Order System” forOrder
automotive parts
Placement and- Provision of tablet-type operation terminals “CarpodTab” to maintenanceAcceptancebusiness operators, etc.
- Products and services other than the above

Broadleaf Co., Ltd. All rights reserved.

Appendix 3

Business Application Software User Renewals

16 Image of User Renewals

Term of Lease Agreement
6 years (standard)Company sales
fluctuate based onremaining lease status

Remaining LeaseUsersAgreement

Begin negotiations overrenewal (after about
4.5 years have passed)

Agreement
RenewalStart ofrenewed lease

Broadleaf Co., Ltd. All rights reserved.

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.jpBroadleaf Co., Ltd. All rights reserved.