First Quarter of FY12/2021

Business Results Briefing

May 10, 2021

Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

CONTENTS

1

Overview of 1Q Business Results

022

Results Forecasts

09

3

Supplemental Information

17

Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

1

CHAPTER 1

Overview of 1Q Business Results

Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

2

CHAPTER 1 Overview of 1Q Business Results

Summary

Rise in stock revenue ratio
Sales of monthly services increased due to increasing number of software users.
The number of software sale in the form of monthly subscription increased.

Increase in high-margin revenue
Ratio of high-margin monthly revenue in total sales rose.
Revenue

5.195 billion yen(YoY-1.6%)

OperatingprofitImpact of
COVID-19672 million yen(YoY +10.1%)

Monthly sales
ratio
Operatingprofit margin

39.1%(YoY +4.2pts)

12.9%(YoY +1.4pts)

・In automotive aftermarket sector, demand for vehicle inspections remained firm, so IT investment remained firm as well.
・Regarding mobile phone shops, travel agencies, and sightseeing bus operators, business conditions remained severe,so IT investment failed to recover.
・In the manufacturing industry, cautious stances toward IT investment were seen, so more time was needed for businessnegotiations to progress.

Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

3

CHAPTER 1 Overview of 1Q Business Results

Overview of Consolidated Business Results(Millions of yen)

FY2021
1Q

FY2020
1Q

YoY change

Revenue

YoY ratio

・Decreased in reaction to the big deal of devices (FY2020
243 million yen).

Revenue

5,195

5,279

-84

-1.6%

・Monthly sales increased by 187 million yen due
to an increase in the number of software users.

Operating profit

672

610

+62

+10.1%

Profit before tax

669

627

+43

+6.8%

・The impact of software sale shifting tomonthly subscription model was approximately
100 million yen.

Profit attributable toowners of the parent

Basic earnings per
share

Operating profit

426

413

+13

+3.1%

・Sales ratio of high-margin monthly service rose.
・Streamlined operating activities under COVID-19
pandemic.

4.86 yen

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4.72 yen--4

CHAPTER 1 Overview of 1Q Business Results

Breakdown by Revenue Categories(Millions of yen)

FY2021
1Q

FY2020
1Q

YoY change

YoY ratio

Platform
・SaaS: Monthly subscription contracts increased.

Platform

2,883

2,506

+377

+15.0%

SaaS

194

159

+35

+21.9%

・Basic: The number of software users increased.

Basic

2,013

1,759

+254

+14.4%

・Support: Monthly support service contract rate increased.
Strong sales of supplies.

EDI/settlement

170

171

-1

-0.6%

Support

452

380

+72

+19.0%

Others

53

37

+16

+44.6%

Application

2,312

2,773

-461

-16.6%

1,867

1,985

-118

-6.0%

OTRS

69

90

-21

-23.5%

Devices

376

697

-321

-46.1%

5,195

5,279

-84

-1.6%

By industry

Total

Application
・By industry:
Automotive sector was influenced by the shift of software
to subscription model.
In non-automotive sector, the number of software saledecreased due to the impact of COVID-19.
・Devices:
Decreased in reaction to the big deal of devices in
FY2020.

NOTE) SaaS category has been newly established
For an explanation of revenue categories, please refer to the supplementary information on Page 17.

Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

5CHAPTER 1 Overview of 1Q Business Results

Quarterly Trends of Monthly Sales
Quarterly trends of monthly sales

SaaS(Millions of yen)

SaaS

Platform-Basic*

Year on year

・Subscription contracts of the “.NS Series” increased.

2,029+10.2%

・Started operation of the “.c Series” in some areas.

194+21.9%

Support services and Others
EDI/settlement

1,842
159

178

170

186

Platform-Basic・The number of users of the “.NS Series” increased.

1,271

1,310

1,290

1,320

1,357

+6.8%

Support services and Others
・Monthly contract rate for support services increased.
・The number of contracts for DX tools, etc. increased.

241

245

265

283

308

+27.7%

EDI/settlement

171

165

173

183

170

-0.6%

1Q

2Q

3Q

4Q

1Q
FY2021・Settlement agency service struggled due to sluggish
transaction of recycled auto parts.

FY2020*Platform-Basic-PaaS (Database/Monthly) + IaaS

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6

CHAPTER 1 Overview of 1Q Business Results

Breakdown of Changes in Operating Profit(Millions of yen)
＋ YoY increase factors－ YoY decrease factors

Cost of sales
・Purchase cost decreased due to the decline in reaction to
the big deal of devices in FY2020.

Operatingprofit610

Decrease of
personnel
Decrease in expenses
cost of sales
+25
+111

Decrease intravel expenses+54
Increase inadvertisingexpenses-36

Operatingprofit672

・Burden of amortization expense increased due toexpanded provision of cloud services.
・Gross profit increased despite of the decrease in revenue,
and the gross profit margin improved to the 70% level.

Others-9

Decrease in
sales
-84
Increase in amortization
expense of cloud services -21

SGA cost
・Advertising expenses
Participated in a large-scale exhibition(The exhibition was cancelled in FY2020 ).

FY2020
1Q

Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

FY2021
1Q

・Travel expenses
Streamlined operating activities under COVID-19 pandemic
by promoting the establishment of online operating activities.

7

CHAPTER 1 Overview of 1Q Business Results

Overview of the Balance Sheet(Millions of yen)

AssetsTotal Liabilities and equity

Current assets

Current liabilities

Non-current assets

Non-current liabilities

・As for current assets, cash and deposits decreased due todividend payouts, tax payments, development investments,
etc.

Total shareholders' equity

7,752

7,178

-574

Assets

6,432

6,393

-39

1,239

1,228

-12

・As for non-current assets, intangible assets increased due
to investment in development of cloud services.
Liabilities
・As for current liabilities, operating and other payables
decreased due to seasonal factors.

24,522

FY2020Year-end

25,038+516

FY2021
End of 1Q

Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

24,602

FY2020Year-end

24,595

FY2021
End of 1Q-7

・Also, short-term interest-bearing debts increased due tofunding of short-term working capital.

EquityRetained earnings decreased due to dividend payout, while
profit was recorded.

8

CHAPTER 2

Results Forecast

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9CHAPTER 2 Results Forecast

Forecast of Consolidated Results(Millions of yen)

FY2021
1H forecast

Revenue

FY2020
1H results

YoY change

FY2021
Full-year
forecast

YoY ratio

FY2020Full-year
results

YoY change

YoY ratio

9,500

10,232

-732

-7.2%

20,10021,162-1,062-5.0%

Operating profit

700

1,628

-928

-57.0%

2,400

4,135

-1,735-42.0%

Profit before tax

700

1,614

-914

-56.6%

2,400

3,820

-1,420-37.2%

Profit attributable tothe owners of parent

430

1,066

-636

-59.6%

1,550

2,465

-915

-37.1%

4.90 yen

12.18 yen--

17.64 yen

28.16 yen--

Basic earnings per
shareNOTE)There is no change in forecast.

Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

10CHAPTER 2 Results Forecast

1H Results Forecast(Millions of yen)

Operating profit

Revenue
2Q

2Q

1Q

1Q

10,2322Q(From April to June)
Promotion of measures for early and smooth transition to
cloud version of the “.c Series” : -600 million yen
Details of measures(1) Sequential shift to the “.c Series”, beginning from

9,500

major customers-732(2) Promote transition to monthly subscription model of the

1,628
4,953

“.NS Series”
4,305

-648

(3) Restrain lump-sum sale of the “.NS Series” prior to the
expiration of the contract (normally 6 years)

1,018

5,279

5,195
Result

700

-928

28

-989

672

+62

-84
610

ResultFY20201H

FY2021
1H forecast

Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

FY20201H

FY2021
1H forecast

Decrease in sale of devices:-100 million yen
Increase in monthly sales: +100 million yen

Total cost・Increase in amortization expense of cloud services
・Increase in operating costs for cloud service infrastructure
・Costs postponed from 1Q

11CHAPTER 2 Results Forecast

1H Forecast by Revenue Categories
Pre-recomposition (Previous forecast)

Post-recomposition (New forecast)
FY2021
1H Forecast

FY2020
1H Results

YoY change

Platform

5,250

5,072

+178

+3.5%

SaaS

400

329

+71

+21.6%

Basic

3,550

3,575

-25

-0.7%

EDI/settlement

320

336

-16

-4.8%

Support

880

761

+119

+15.6%

Others

100

72

+28

+39.6%

Application

4,250

5,160

-910

-17.6%

3,450

3,964

-514

-13.0%

OTRS

100

132

-32

-24.0%

Devices

700

1,064

-364

-34.2%

9,500

10,232

-732

-7.2%

(Millions of yen)

By industry

Total

YoY ratio(Millions of yen)

SaaS
CPT

Monthly
subscription(SaaS)
Lump-sum

FY2021
FY2020
1H Forecast 1H Results

Platform

4,900

4,872

Basic

3,600

3,600

EDI/settlement

420

439

Support

800

761

Others80

72

Application

4,600

5,360

3,800

4,165

OTRS

100

132

Others

700

1,064

9,500

10,232

By industry

Total(NOTE) The forecast for Platform-Support and Platform-Others has been revised upward due to the steady progress of support services and DX tools.
Against this backdrop, we have decided to further accelerate the shift to monthly subscription model , hence lowered the forecast for Application-By industry.
Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

12CHAPTER 2 Results Forecast

Full-year Results Forecast(Millions of yen)

2H (From July to December)Operating profit

Revenue
2H

2H

1H

1H

Promotion of measures for early and smooth transition to
cloud version of the “.c Series” : -800 million yen
Details of measures(1) Sequential shift to the “.c Series”, from major

21,162

20,100

customers-1,062(2) Promote transition to monthly subscription model of the

4,135“.NS Series”
10,93010,600(3) Restrain lump-sum sale of the “.NS Series” prior to the

-330
2,507

10,232

9,500

2,400

1,700

-732

FY2021
Full-year forecast

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-1,735

FY2020
Full year

Increase in monthly sales: +400 million yen-807

Total cost-928

・Increase in amortization expense of cloud services
・Increase in operating costs for cloud service infrastructure
・Aggressive promotion of the “.c Series”
・Strengthening of R&D

1,628
700

FY2020
Full year

expiration of the contract (normally 6 years)

FY2021
Full-year forecast

13CHAPTER 2 Results Forecast

Full-year Forecast by Revenue Categories
Pre-recomposition (Previous forecast)

Post-recomposition (New forecast)(Millions of yen)

FY2021
Full-year
forecast

FY2020Full-year
results

YoY change

YoY ratio

Platform

11,10010,692

+408

+3.8%

SaaS

850

692

+158

+22.8%

Basic

7,500

7,555

-55

-0.7%

700

692

+8

+1.1%

Support

1,850

1,596

+254

+15.9%

Others

200

157

+43

+27.5%

Application

9,000

10,469

-1,469-14.0%

7,350

8,389

-1,039-12.4%

OTRS

250

204

+46

+22.7%

Devices

1,400

1,877

-477

-25.4%

20,10021,162-1,062-5.0%

EDI/settlement

By industry

Total

FY2021
Full-year
forecast

FY2020Full-year
results

Platform

10,40010,275

Basic

7,600

7,616

920

905

Support

1,700

1,596

Others180

157

Application

9,700

10,887

8,050

8,806

OTRS

250

204

Others

1,400

1,877

20,10021,162(Millions of yen)

SaaS
CPT

Monthly
subscription(SaaS)
Lump-sum

EDI/settlement

By industry

Total(NOTE) The forecast for Platform-Support and Platform-Others has been revised upward due to the steady progress of support services and DX tools.
Against this backdrop, we have decided to further accelerate the shift to monthly subscription model , hence lowered the forecast for Application-By industry.
Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

14

CHAPTER 2 Results Forecast

Breakdown of Changes in operating profit (Full Year)(Millions of yen)
＋ YoY increase factors－ YoY decrease factors

Cost of sales
・Purchase cost will decrease due to the decline in reaction
to the big deal of devices in FY2020.

Operatingprofit4,135

・Burden of amortization expense will increase due toexpanded provision of cloud services.

Decrease incost of sales+188
Decreasein sales-1,062

Renewal of
Increase in Increase inservice
Increase in
infrastructure personnel advertising
Otherstravelexpenses expenses-389
expenses
-143
-151
-153
-25

Operatingprofit2,400

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・Increase in expenses for upgrading and maintaining IT
infrastructure to improve service level (availability, etc.)
・Advertising Expenses/Travel Expenses

Increase in amortization
expense of cloud services-285

FY2020

SGA cost

Aggressive promotions and active operating activities inline with the full-scale launch of the “.c Series”

FY2021(Forecast)

Promote reduction of operating expenses by promoting
the establishment of online operating activities in parallel

15

CHAPTER 2 Results Forecast

Dividend Policy and Dividend Forecast
Dividend per share
Change in dividend policy
Annual(Consolidated Dividend
Payout Ratio)

13 yen(36.7%)

Year-end

6.50Yen

13.20 yen
(46.9%)

7 yen(39.7%)(2) Shift from stable dividends to performance-linked
dividends
6.60Yen

3.50YenInterim(1) 20% → 35% or more
Raised the target consolidated dividend payout ratio

6.50Yen

6.60Yen
3.50Yen

FY2019FY2020

FY2021

Reasons for changes in dividend policy

Due to upfront investment costs for accelerating growth,
profit will temporarily decline, but we will pay dividends
that are more closely linked to business performance inline with future growth of profit.

(Forecast)
Dividend Policy (From FY2021)
Our basic policy is to distribute earnings in accordance with business results while retaining thesurplus required for business development and maintenance of financial soundness to increase
corporate value. We aim for a consolidated dividend payout ratio of 35% or more.

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16

CHAPTER 3

Supplemental Information

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17

CHAPTER 3 Supplemental Information

Details of Revenue Categories
Classification

Major category

Mediumclassification

・Provision of business software (monthly)・Provision of tablet-type operation terminals “CarpodTab (CPT)”

SaaS

Basic

Platform
EDI/settlement

SupportDetails

Smallclassification

PaaS (lumpsum)・Provision of basic software and common function (lump-sum)

PaaS

・Provision of database for business software (auto parts, vehicle and index information, transportation data, tourist spot
data, etc.) (monthly)

IaaS・Provision of network server function required for the use of business software

PSF

・Provision of settlement agency services for “Parts Station NET,” a network specialized in the transaction of recycled auto
parts

BLP

・Provision of “BL Parts Order System,” an electronic system for receiving/placing orders for auto parts

Support services ・Provision of support and hardware maintenance services for clients in various industries
Supplies

・Sale of exclusive forms and OA supplies

Others・Analysis, processing and provision of a large amount of accumulated anonymization data collected from clients, etc.

By industry

・Sale of business software by industry (excluding basic software)(Automotive category: auto maintenance shops, auto body shops, car dealers, auto parts dealers, auto glass shops, auto
electrical equipment shops, recycling shops, etc.)(Non-automotive category: machine tool dealers, mobile phone distributers, travel agencies, sightseeing bus operators,
etc.)

OTRS

・Sale of "OTRS," a work analysis and business optimization software

Devices・Sale of devices such as PCs and printers, etc.

Application

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18

CHAPTER 3 Supplemental Information

Changes of Revenue Categories
Pre-recomposition (Old categories)

Post-recomposition (New categories)
Platform

Platform

SaaS
Basic

PaaS

EDI/
settlement

PSF

SupportSupport services

IaaS
BLP

SaaS

CPT

Supplies

PaaS/SaaS

IaaS

EDI/
settlement

PSF

SupportSupport services

Supplies

Automotive

Non-automotive

BLP

CPT

OthersOthersApplication
By industry

Basic

Automotive

Non-automotive

Monthly
subscription(SaaS)

Application
By industry

Lump sum

OTRS

OTRS

Devices

OthersCopyright©2021 Broadleaf Co.,Ltd. All rights reserved.

19

CHAPTER 3 Supplemental Information

Detailed Breakdown by Revenue Categories (1Q)
Post-recomposition (New categories)(Millions of yen)

Pre-recomposition (Old categories)
FY2021
1Q

FY2020
1Q

YoY change

YoY ratio(Millions of yen)

Platform
SaaS
Basic
PaaS (Basic software/lump sum)
PaaS (Database/monthly)
IaaS
EDI/settlement
PSF
BLP
SupportSupport services
Supplies
Others

2,883
194
2,013
656
766
591
170
131
39
452
255
197
53

2,506
159
1,759
489
716
555
171
138
33
380
204
176
37

+377
+35
+254
+168
+51
+36
-1
-7
+6
+72
+50
+22
+16

+15.0%+21.9%+14.4%+34.3%
+7.1%
+6.5%
-0.6%
-5.0%
+17.6%+19.0%+24.6%+12.4%+44.6%

Platform

Application
By industry
Automotive
Non-automotive
OTRS
Devices
Total

2,312
1,867
1,659
208
69
376
5,195

2,773
1,985
1,731
254
90
697
5,279

-461
-118
-72
-47
-21
-321
-84

-16.6%-6.0%-4.1%-18.3%-23.5%-46.1%-1.6%

Application

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Basic
PaaS/SaaS
Lump sumMonthly
IaaS
EDI/settlement
PSF
BLP
SupportSupport services
Supplies
Others
By industry
Automotive
Non-automotive
OTRS
OthersTotal

FY2020
1Q

2,409
1,770
1,215
489
727
555
222
138
84
380
204
176
37
2,870
2,083
1,810
273
90
697
5,279

20

CHAPTER 3 Supplemental Information

Sales Recognition in Lease Contract

In the case of 6-year contract with a trade-in
Most user companies choose to sign a lease contract.
Prior to the expiration of the software rights purchase period (= lease period), we may trade in the remaining lease balance.
(Millions of yen)
Sales recorded 2
Initial contract

2

Sales recorded 1.5

2

Next contract minus Trade-in

Broadleaf
Trade-in-0.5
Lump sum

Lump sum
Finance lease

Leasingcompany
72 monthly payments
Initial Contract(2 million yen)

User company

NOTE)Amount is an example.
Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

Trade-in(1.5 years)

Renewal ofcontract before 6
years elapsed
Next contract(2 million yen)

Expiration of
the first contract

72 monthly payments
Expiration of
the next contract21

CHAPTER 3 Supplemental Information

Measures for Monthly Subscription Shift and Impacts on Sales

In the case existing users with 6-year contract change to monthly subscription contract
Sales that would have beenrecorded if the contract had
been made in lump sum

Lump sum contract(6 years)

Sales
recorded
1.5

2

-0.5

Tradein2017
Contract renewal** If sales for 12 months are recorded
Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

Impact ②
Sales from this user will be within therange of 1/6 to 1/72* of the lump sum
sales before trade-in deduction (200).

Impact ①
During this period, we are
waiting for contracts to expire,so the number of deals will
temporarily decrease
If you switch to monthly
contract at this timing (About 1.5 years’ worth of deals).

-0.5

**

0.33

・・

Sales recorded
0.33(annually)

Tradein

2021
Timing of contract
renewal**
0.33
NOTE)Amount is an example.
* If we offer exactly the same content

Sales
recorded
1.5

2

-0.5

(Millions of yen)

In 2023Monthly subscription contract starts
after lump sum contract expires

Sales
recorded
-0.17
Sales
(monthly)

Trade-in< (lumpsum)

22CHAPTER 3 Supplemental Information

Corporate Profile

Company nameBroadleaf Co., Ltd

Representative

Kenji Oyama, Representative Director and President

Listed on

Listed on the First Section of the Tokyo Stock Exchange (3673)

SectorInformation and telecommunications

Founded/Established

December 2005/September 2009

Capital Stock

7.148 billion yen (consolidated)

Fiscal Year

From January 1 to December 31

Business Outline

The Company offers a wide range of IT services, including its independently developed business software.
In addition to providing business software that serves as core systems, mainly to business operators in
the automotive aftermarket industry, the Company delivers diverse, unique one stop services including an electronic
network for trading automotive parts and big data analysis.
Looking ahead to the future evolution of mobility society, the Company is also pursuing research and studies related
to the practical application of leading-edge technologies.

Head Office Address

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

Domestic Offices

29 Sales Offices and 3 Technology Development Centers in Japan

Main Subsidiaries

Tajima Inc.

Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

23

Disclaimer

The statements regarding results forecasts and future forecasts contained in thismaterial are forecasts based on information available at the time of preparation of
the materials. They include potential risks and uncertainties.
Therefore, please be aware that actual results may differ from the results forecast
due to various factors.

Contact Information

Broadleaf Co., Ltd
Investor Relations Department
E-mail: bl-ir@broadleaf.co.jp
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24