Second Quarter of FY12/2021

Business Results Briefing

August 10, 2021

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

CONTENTS

1

Overview of 2Q Business Results

022

Results Forecasts

123

Supplemental Information

20

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

1

CHAPTER 1

Overview of 2Q Business Results

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

2

CHAPTER 1 Overview of 2Q Business Results

Review(1) Transition of industry-specific software to monthly subscription models

Progressed as planned

Impact on sales by transion to monthly subscription models-700 million yen

Monthly subscription (SaaS) sales

398 million yen(YoY +20.9%)(2) Transition to stock revenue
Monthly sales ratio

Progress exceeded the plan

40.8%
(YoY +4.6pts)

Number of clients using industry-specific software (total)

37,722 companies(+322 companies from the end of the previous fiscal year)

Monthly support services contract ratio

56.9%(YoY +11.7pts)

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

3

CHAPTER 1 Overview of 2Q Business Results

Overview of Consolidated Business Results(Millions of yen)

Revenue

FY2021
1H

FY2020
1H

YoY change

YoY ratio

9,937

10,232

-295

-2.9%

2,867

3,006

-139

-4.6%

7,070

7,226

-155

-2.1%

5,827

5,598

+230

+4.1%

Operating profit

1,243

1,628

-385

-23.6%

Profit before tax

1,239

1,614

-375

-23.2%

795

1,066

-271

-25.4%

9.05 yen

12.18 yen--

Cost of sales
Gross profit
SG&A expenses, etc.

Profit attributable toowners of the parent

Basic earnings per share

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

4

CHAPTER 1 Overview of 2Q Business Results

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

Platform
Application

SaaS
+69

+187

Revenue
10,232Monthly amount+346
Supplies+47

Devices-411～～

Decrease in reaction to thelarge orders for mobile
phone shops in FY2020-243

FY20201H
Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

Revenue if transition to
subscription models had
not been conducted
10,637+405

New/additional salesof software, etc.
+424
-100

+237

Revenue
9,937
-295

-600

Transition of
automotive software to
subscription models
-700

～
～
FY2021
1H

5

CHAPTER 1 Overview of 2Q Business Results

Breakdown by Revenue Categories(Millions of yen)

FY2021
1H

Platform

5,552

FY20201H
5,072

YoY change

YoY ratio

+480

+9.5%

Major factors of increase/decrease(Amount)

398

329

+69

+20.9%

PaaS/IaaS (basic)

3,793

3,575

+218

+6.1%

The number of clients choosing subscription models grew due tothe transition to subscription models
Impact of transition to subscription models -100
Increase in the total number of licenses+187 (lump sum) / +131 (monthly amount)

EDI and settlement

346

336

+10

+2.8%

Increased number of clients using the ordering platform +12

Support

912

761

+151

+19.9%

Increased usage rate of monthly support services +104

Others

104

72

+33

+45.6%

Increased number of DX solutions adopted and other products

Application

4,385

5,160

-774

-15.0%

3,595

3,964

-369

-9.3%

Impact of transition to subscription models -600

OTRS

138

132

+6

+4.7%

Devices

652

1,064

-411

-38.7%

Bottoming out of demand in the manufacturing industry
Decrease in reaction to the large orders from mobile phone shops
in FY2020 -243

9,937

10,232

-295

-2.9%

SaaS

By industry

Total

NOTE) SaaS categories have been established from FY12/2021.
For an explanation of revenue categories, please refer to the supplementary information on page 20.
Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

6

CHAPTER 1 Overview of 2Q Business Results

Trends in the Number of Companies Using the Industry-Specific Software (Total)(Companies)+322
36,44737,400Automotive

37,722・Enhancement of competitive advantages(sales capabilities, support capabilities, product capabilities)
Aquisitions of new clients, which mainly consist of major
companies
・Shortened the lead time necessary for business negotiations
through the penetration of online sales activities

34,55735,57835,953

Automotive

・ Increased the number of business negotiations by strengthening
collaboration between the sales and support divisions
Non-automotive
・Travel agencies and sightseeing bus operators remained tobe affected by COVID-19

Non-automotive

1,890

1,822

1,769

End of
FY2019End of
FY2020End of
1H FY2021

NOTE) One or more licenses per company

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

7

CHAPTER 1 Overview of 2Q Business Results

Trends in Monthly Sales(Millions of yen)

3,712
SaaS

329

3,897
363

4,058
398

+20.9%

SaaS

・Transition of current software to subscription models
progressed
・The number of companies using new software increased

PaaS/IaaS (basic)
PaaS/IaaS (basic)*

2,560

2,630

2,692

・The amount is linked to the total number of license which
has increased by acquiring new users of current software
Support and Others
・Contract rate of monthly support service rose.

Support and Others

487

548

624

・The number of DX solutions, etc. adopted increased.

EDI and settlement

336

356

346

EDI and settlement

FY20201H

FY20202H

FY2021
1H

・The number of companies using the parts ordering platform
increased.

* Excluding PaaS (lump-sum)
NOTE) Current software “.NS Series” / New software “.c Series” (Provision to general clients are planned to start from 4Q onwards)
Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

8

CHAPTER 1 Overview of 2Q Business Results

Breakdown of Changes in Operating Profit (YoY)(Millions of yen)

+ YoY increase factors- YoY decrease factors
Decline incost of sales
Operating +139

profit1,628～～

・Increase in amortization expense of cloud services including
the new software.

OthersUpdate of+47
the service
Operatinginfrastructure
Increase in-122 Increase in advertisingprofitexpenses
1,243 -385
personnel-36
expenses
Decrease-118
in sales-295
Increase inamortization expenseof cloud services -55

FY20201H

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

Cost of sales
・Purchase cost decreased due to a decline in reaction to large
orders of devices in FY2020.

～～
FY2021
1H

SG&A expenses, etc.
・Update of the service infrastructure
Increase in update cost of IT infrastructure for improving
service levels (availability, etc.).
・Personnel expenses
Legal welfare expenses increased due to stock compensation.
・Advertising expenses
Preparation of online content and active holding of webinars.
・Others
Decrease in travel and entertainment expenses due to theactive shift to online sales.

9CHAPTER 1 Overview of 2Q Business Results

Overview of the Balance Sheet(Millions of yen)

End of
FY2021 1H

End of
FY2020YoY change

Current assets

7,667

7,752

-85

Non-current assets

25,54824,522+1,02733,21632,274+942

Total assets

Major factors of increase/decrease

Decrease in inventories -171
Increase in intangible assets +963

Current liabilities

7,099

6,432

+666

Increase in short-term interest-bearing debts +1,669
Decrease in operating and other payables -451

Non-current liabilities

1,138

1,239

-101

Decrease in long-term interest-bearing debts -181

8,237

7,671

+565

Total liabilities
Total equity
Total liabilities and shareholders’ equity

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

24,97924,602+376

33,21632,274+942

Recognition of profit +796
Dividend payout -578

10

CHAPTER 1 Overview of 2Q Business Results

Cash Flow Analysis(Millions of yen)

FY2021
1H

FY2020
1H

YoY change

Major factors of increase/decrease

Cash flows from operating activities

1,080

1,100

-21

Decrease in profit before tax-375
Decrease in operating receivables and inventories +331

Cash flows from investing activities-1,564-1,284-280

Increase in acquisition of intangible assets -363

Cash flows from financing activities

537

-23

+560

Increase in short-term loans payable +651

Free cash flow

-485

-184

-300

Cash and cash equivalents

3,287

2,826

+461

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

11

CHAPTER 2

Results Forecasts

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

12CHAPTER 2 Results Forecasts

Forecast of Consolidated Results(Millions of yen)

FY2021
Full-year
forecast

FY2020Full-year

YoY change

FY2021
2H forecast

YoY ratio

FY20202H

YoY change

YoY ratio

20,35021,162

-812

-3.8%

10,413

10,930

-517

-4.7%

6,050

6,088

-38

-0.6%

3,183

3,082

+101

+3.3%

14,30015,074

-774

-5.1%

7,230

7,848

-619

-7.9%

11,70010,939

+761

+7.0%

5,873

5,341

+532

+10.0%

Operating profit

2,600

4,135

-1,535-37.1%

1,357

2,507

-1,150-45.9%

Profit before tax

2,580

3,820

-1,240-32.5%

1,341

2,206

-865

-39.2%

Profit attributable toowners of the parent

1,640

2,465

-825

-33.5%

845

1,399

-554

-39.6%

18.66 yen

28.16 yen

-

-

-

-

-

-

Revenue
Cost of sales
Gross profit
SG&A expenses, etc.

Basic earnings per share

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

13

CHAPTER 2 Results Forecasts

Illustration of Transition to Monthly Subscription Models
Number of software sold during the period

Current software".NS Series"

Hybrid(Lump-sum lease contract& monthly amount)Start provision to general clients
New software".c Series"
Subscription models

Acceleration of transition
to subscription models

Current software".NS Series"

FY2020

FY2022～

FY2021
1H

2H

Sales recording method of software changed to subscription models by revenue categories are described on the supplemental information (p. 24).
Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

14

CHAPTER 2 Results Forecasts

Breakdown of Major Changes in Revenue (Full Year, YoY)
(Millions of yen)

+ YoY increase factors- YoY decrease factors

Platform
Application

New/additional salesof software, etc.
+743
Monthly+185
amount+558+661

Revenue if transition to
subscription models had notbeen conducted+888
22,050

SaaS+158

Revenue
21,162

Supplies+11
Devices-527～～

Decrease in reaction to thelarge orders for mobile
phone shops in FY2020-243

FY2020
Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

-300-1,400

Revenue
20,350-812

Transition of
automotive software
to subscription models-1,700Additional accelerationcompared to the initial plan
-200

～
～
FY2021(Forecast)15

CHAPTER 2 Results Forecasts

Forecasts by Revenue Categories(Millions of yen)

FY2021
Full-year
forecast

FY2020Full-year

YoY change

YoY ratio

FY2021
2H forecast

FY20202H

YoY change

YoY ratio

Platform

11,25010,692

+558

+5.2%

5,698

5,620

+78

+1.4%

SaaS

850

692

+158

+22.8%

452

363

+89

+24.5%

PaaS/IaaS (basic)

7,700

7,555

+145

+1.9%

3,907

3,980

-73

-1.8%

EDI and settlement

700

692

+8

+1.1%

354

356

-2

-0.5%

Support

1,800

1,596

+204

+12.8%

888

835

+52

+6.3%

Others

200

157

+43

+27.5%

96

85

+10

+12.3%

Application

9,100

10,469-1,369-13.1%

4,715

5,310

-595

-11.2%

7,500

8,389

-889

-10.6%

3,905

4,424

-519

-11.7%

OTRS

250

204

+46

+22.7%

112

72

+40

+55.5%

Devices

1,350

1,877

-527

-28.1%

698

813

-116

-14.2%

20,35021,162

-812

-3.8%

10,413

10,930

-517

-4.7%

By industry

Total

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16

CHAPTER 2 Results Forecasts

Forecasts of Monthly Sales(Millions of yen)

3,712
SaaS

3,897
363

329

4,058
398

4,212
452

+24.5%

SaaS
・Accelerate the transition of current software to thesubscription model.
・Start provision of new software to general clients (4Q).

PaaS/IaaS (basic)*

2,560

2,630

2,692

2,758

PaaS/IaaS (basic)
・ Increase the total number of licenses of current software byfocusing on acquiring new clients.
Support and Others
・Further raise the monthly support services contract rate.

Support and Others

487

548

624

646

・Increase in the number of DX solutions adopted.

EDI and settlement

336

356

346

354

EDI and settlement

FY20201H

FY20202H

FY2021
1H

FY20212H (Forecast)・ Further increase the number of companies using the parts
ordering platform.

* Excluding PaaS (lump-sum)
Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

17

CHAPTER 2 Results Forecasts

Breakdown of Changes in Operating Profit (Full-Year, Year-on-Year)
Decrease incost of sales
Operating +38(Millions of yen)+: YoY increase factors- : YoY decrease factors

profit4,135

Cost of sales
・ Amortization expense of cloud services will rise after the
new software is launched to general clients.
SG&A expenses, etc.

～～

Update ofservice
Increase in
infrastructure
advertising Others-389
expenses -106
Operating
Increase in
Increase in-84
profitpersonnel
amortization
expenses
2,600 -1,535
expense of-182
cloud services
Decrease-285
in sales-812

FY2020

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

～～

FY2021(Forecast)・Update of the service infrastructure
Increase in update cost of IT infrastructure for improving
service levels (availability, etc.).
・Personnel expenses
Increase in legal welfare expenses due to stock compensation.
・Advertising expenses
Preparation of contents for online sales and active holding ofwebinars.
・Others
Increase expenses for sales activities after the new software islaunched to general clients.

18

CHAPTER 2 Results Forecasts

Dividend Policy and Dividend Forecast
Dividend per share

Annual(Consolidated dividend
payout ratio)

13.00 yen
(36.7%)

13.20 yen
(46.9%)

6.50

6.60

Year-end

8.00 yen(42.8%)

4.00(Forecast)(Forecast)
6.50

6.60

FY2019FY20204.00(planned)

Interim

FY2021Dividend Policy
We regard the return of profits to shareholders as an important management issue. Our basic policy is to distribute earnings
in accordance with business results while retaining the surplus required for business development and maintenance offinancial soundness to increase corporate value. We aim for a consolidated dividend payout ratio of 35% or more.

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

19

CHAPTER 3

Supplemental Information

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20

CHAPTER 3 Supplemental Information

Details of Revenue Categories
Category
Major
category

Mediumcategory

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

SaaS

PaaS/IaaS(basic)PaaS lump sum

・Provision of basic software and common function

PaaS monthly

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

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 ordering platform for auto parts

Platform
EDI andsettlement

Details

Small
category

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

・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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21

CHAPTER 3 Supplemental Information

Changes in Revenue Categories
Post-recomposition (new categories)

Pre-recomposition (old categories)
Platform

Platform

SaaS
PaaS/IaaS(basic)PaaS

EDI andsettlement

PSF

Support

Maintenance

IaaS
BLP

SaaS

CPT

Supplies

Basis

PaaS/SaaSEDI andsettlement

PSF

SupportSupport services

Supplies

Automotive

Non-automotive

OthersOthersApplication

Monthly
subscription Application(SaaS)

By industry

Automotive

Non-automotive

By industry

IaaS
BLP

CPT

Lump sum

OTRS

OTRS

Devices

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

22

CHAPTER 3 Supplemental Information

Detailed Breakdown by Revenue Categories (1H)
Post-recomposition (new categories)(Millions of yen)

Pre-recomposition (old categories)
FY2021
1H

FY2020
1H

YoY change

YoY ratio

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

5,552
398
3,793
1,101
1,502
1,190
346
267
78
912
519
393
104

5,072
329
3,575
1,014
1,450
1,110
336
269
67
761
415
346
72

+480
+69
+218
+87
+52
+79
+10
-2
+12
+151
+104
+47
+33

+9.5%
+20.9%
+6.1%
+8.5%
+3.6%
+7.2%
+2.8%
-0.8%
+17.5%+19.9%+25.1%+13.6%+45.6%

Platform

Application
By industry
Automotive
Non-automotive
OTRS
Devices
Total

4,385
3,595
3,129
466
138
652
9,937

5,160
3,964
3,463
501
132
1,064
10,232

-774
-369
-334
-35
+6
-411
-295

-15.0%
-9.3%
-9.7%
-7.0%
+4.7%
-38.7%-2.9%

Application

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

FY2020(Millions of yen)

1H

Basis
PaaS/SaaS
Lump sumMonthlyIaaS
EDI and settlement
PSF
BLP/CPT
SupportSupport services
Supplies
Others

By industry
Automotive

Non-automotive
OTRS
Others
Total

4,872
3,600
2,490
1,014
1,475
1,110
439
269
170
761
415
346
72
5,360
4,165
3,606
559
132
1,064
10,23223

CHAPTER 3 Supplemental Information

Changes in Sales Recording Method by Revenue Categories
through Transition to Monthly Subscription Models● :Multi-year lump sum/ ● : Monthly/ ● : When needed①②③

Software Type

Current software “.NS Series”

Current software “.NS Series”

New software “.c Series”

Form of contract

HybridMonthly subscription

ー

● ●

●

●

ー

●

●

●
②→③
ー “PaaS/IaaS (basic)“ and● “Support services”are● integrated into “SaaS”
● ●
●
●
●
ー
●

ー
ー
ー
ー

Platform
SaaS
PaaS/IaaS (basic)
PaaS (lump sum)
PaaS (monthly)
IaaS (monthly)
SupportSupport services
Supplies
Application
By industry
Devices

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

● ●
①→②
●
“Basic software (lump● sum)"and “By industry" are● moved to “SaaS”
● ●
●
●
●
●
ー

●

ー
●
●

●
24

CHAPTER 3 Supplemental Information

Sales Recognition in Lease Contract
In the case of 6-years contract with a trade-in
Most clients 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-0.5

Trade-inLump sum

Lump sum

Finance lease
Leasingcompany
72 monthly payments
Initial Contract(2 million yen)

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

Trade-in(1.5 years)

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

Expiration of thefirst contract

72 monthly payments
Expiration of
the next contract25

CHAPTER 3 Supplemental Information

Measures for Transition to Monthly Subscription Models and Impact on Sales
In the case where existing clients with 6-years contract changed to monthly subscription contract
Lump sum contract(6 years)

Sales
recorded
1.5

2

-0.5

Sales that would have beenrecorded if the contract had
been made in lump sum

Trade-in2017
Contract renewal** If sales for 12 months were recorded
Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

Impact ②
In sales from this user
From the previous trade-in of (200)
1/6th to 1/72*

-0.5

**

0.33 ・・

Sales recorded
0.33 (annually)

Trade-in

Impact ①
2021
During this period, we are waiting for
Timing ofcontracts to expire, so the number ofconventional
deals will temporarily decrease
contract renewal(Approx. 1.5 years’ worth of deals)
If the contract waschanged at this timing**
0.33

NOTE)Amount is an example.
* If you offer exactly the same contents

Sales
recorded
1.5

2

-0.5

(Millions of yen)

2023
Monthly subscription
contract starts after thelump sum contract expires

Sales
recorded
-0.17

Sales
(monthly amount)

Trade-in< (lump sum)26

CHAPTER 3 Supplemental Information

Corporate Profile

Company nameBroadleaf Co., Ltd

Representative

Kenji Oyama, Representative Director, andPresident

Listed on

Listed on the First Section of the Tokyo Stock Exchange (3673) *Planning to move to prime market

SectorInformation and telecommunication

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 theautomotive 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

Major Subsidiaries

Tajima Inc.

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

27

Disclaimer

The statements regarding results forecasts and future forecasts contained in this material are

forecasts based on information available at the time of preparation of the material, so they
include potential risks and uncertainties.
Therefore, please be aware that actual results may differ from these results forecasts due tovarious factors.

Contact Information

Broadleaf Co., Ltd
Investor Relations Department
E-mail:bl-ir@broadleaf.co.jp
Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

28