FY12/2023
Business Results Briefing Material

February 9, 2024
Broadleaf Co., Ltd

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

Table of Contents

Summary

P2

Business Results for the FY12/2023

P4

Results Forecasts for FY12/2024

P10

Progress of Medium-Term Management Plan (2022-28)

P15

Supplemental Information

P26

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2

Summary

Summary
After the scheduled deficit period of 2022-2023, the Company will move to the stage of profit accumulation starting in 2024.

FY12/2023

FY12/2024

FY12/2025-

Increase in revenue,

Acceleration of revenue growth,

Continued revenue growth,decrease in loss

return to profitability

profit growth

Forecast

ResultPlan

Revenue

YoY change +11%

Revenue

YoY change +14%

Revenue

CAGR (2025-28)+17%

Operating loss

Improved by a billion
yen year-on-year

Operating profit

Return to profitability

Operating profit

CAGR (2025-28)+105%

ReasonReasonReason

The number of clients of monthly subscription

The number of clients of monthly

Since there are still clients scheduled to switch

products has increased which led to thesubscription products will further increase,to monthly subscription products, recurring

increase in recurring revenue.

leading to the growth of recurring revenue.

revenue is expected to continue growing.

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3

Summary

P2

Business Results for the FY12/2023

P4

Results Forecasts for FY12/2024

P10

Progress of Medium-Term Management Plan (2022-28)

P15

Supplemental Information

P26

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

4

FY12/2023

Overview of Consolidated Financial Results for FY12/2023
The Company recorded double-digit revenue growth against the backdrop of a favorable business environment, and the loss
decreased due to improved operational efficiency. Both revenue and loss were better than the forecasts.

(Millions of yen)

FY2023

FY2022

YoY change

FY2023 forecast(November 9)

YoY ratio

Difference

Revenue

15,385

13,833+1,552+11.2%

15,300+85

Cost of sales

6,045

5,346

+699

+13.1%

6,100-55

Gross profit

9,340

8,487

+853

+10.1%

9,200

+140

SG&A expenses, etc.

11,242

11,384

-142

-1.2%

11,400-158

Operating profit*-1,902-2,897+995--2,200+298

Profit before tax*

-1,921-3,005+1,084--2,300+379

Profit attributable to owners of theparent*-1,487-2,431+944--1,900+413-16.76 yen-27.54 yen---21.42 yen-

Basic earnings per share**Minus (-) represents loss

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

5

FY12/2023

Sales by Service Category
Sales of “Software service,” which the Company has been focusing on, increased by 134% year-on-year.
The increasing number of monthly subscription users led to the increase in recurring revenue and ratio.

(Millions of yen)

FY2023Cloud service

FY2022

YoY change

FY2023 forecast(November 9)

YoY ratio

Difference

5,236

2,628

+2,608+99.2%

5,300

-64

4,587

1,958

+2,629+134.3%

4,650

-63

Marketplace

649

670

-21

-3.2%

650

-1

Packaged system

10,149

11,205-1,056-9.4%

10,000+149

Software sales

2,983

3,539

-555

-15.7%

3,000-17

Operation and support service

7,166

7,666

-500

-6.5%

7,000

+166

Total

15,385

13,833+1,552+11.2%

15,300+85

Recurring revenue

12,401

10,294+2,107+20.5%

12,300

+101

81%

74%

-

-

80%

-

Software service

Recurring revenue ratio

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FY12/2023

Factors behind Changes in Operating Loss
Increase in revenue absorbed upfront investment costs related to software development and strengthening of the infrastructure
for providing services, etc.

Operating loss

Cost of sales•(Millions of yen)

FY2023

FY2022•

Amortization expenses increased due to expansion offunctions of cloud software, etc.
Development costs for expanding the menu of cloud services
and strengthening IT infrastructure increased.

Increase inrevenue+1,552
Abolition of Others
shareholder +477
benefits+255

Increasein cost of Increase insales
personnel Increase in-699
expenses operating-142-2,897
expenses Increase in-142 outsourcing
expenses-306
Increase in amortization expense ofcloud software -176
Increase in development costs -274

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

SG&A expenses, etc.
-1,902••

Travel expenses, social expenses, and other operating expenses
increased due to active sales activities and sales promotions.
Outsourcing expenses for strengthening back-office functions
increased.

Rebound increase fromgoodwill impairmentof subsidiaries +552

7

FY12/2023

Balance Sheet Status
Intangible assets increased since the Company is in the initial investment phase of cloud service development.
Contract liabilities increased due to the increase in multi-year contracts for monthly subscription products.

FY2023Year-end(Millions of yen)

FY2022Year-end

YoY change

Major breakdown of increase/decrease

Current assets

7,053

6,555

+498

Cash and cash equivalents +463
Operating and other receivables +109

Non-current assets

29,69626,980+2,716

Intangible assets +2,297
Property, plant and equipment +449

Total assets

36,75033,535+3,214Current liabilities

11,0796,583+4,496

Contract liabilities +2,244
Short-term interest-bearing debts +2,206

Non-current liabilities

3,184

3,291

-107

Long-term interest-bearing debts -105

Total liabilities

14,263

9,873+4,390Total equity

22,487

23,662-1,176

Total liabilities and equity

36,75033,535+3,214

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

Loss -1,525
Dividend payout -88

8

FY12/2023

Cash Flows Status
Operating cash flow increased due to an increase in the ratio of multi-year contracts for monthly subscription products.
Investing cash flow increased due to stepped-up investment in cloud services development.

(Millions of yen)

FY2023

FY2022

YoY change

Major breakdown of increase/decrease

Cash flow from operating activities

3,425

1,606

+1,819

Increase in operating and other receivables -1,911
Increase in operating and other payables +1,026
Increase in contract liabilities +1,672

Cash flow from investment activities-3,669-2,910-759

Increase in payments for acquisition of intangible
assets -1,065

Cash flow from financing activities

705

1,237

-532

Increase in short-term debts +2,639
Proceeds from long-term debts -3,000
Repayment of long-term debts -446

Free cash flow-244

-1,304+1,060Cash and cash equivalents at the end of theperiod

3,920

3,457

+463

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9

Summary

P2

Business Results for FY12/2023

P4

Results Forecasts for FY12/2024

P10

Progress of Medium-Term Management Plan (2022-28)

P15

Supplemental Information

P26

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

10

FY12/2024

Consolidated Results Forecast for FY12/2024
Revenue will increase by 14% year-on-year due to further increase in the number of users of monthly subscription products.
Operating loss is expected to improve by 1,952 million yen year-on-year, and return to profitability.

FY2024Full-year forecast(Millions of yen)

FY2023Full-year

FY2024
1H forecast

YoY ratio

FY2023
1H

YoY ratio

Revenue

17,60015,385+14.4%

8,000

7,390

+8.3%

Cost of sales

6,050

6,045

+0.1%

3,000

2,985

+0.5%

Gross profit

11,5509,340+23.7%

5,000

4,405

+13.5%

SG&A expenses, etc.

11,500

11,242

+2.3%

5,750

5,516

+4.2%

Operating profit *50-1,902--750-1,111-

Profit before tax *50-1,921--750-1,102-

Profit attributable to owners of theparent *40-1,487

-

-600

-826

-

0.45 yen-16.76 yen--6.74 yen-9.33 yen-

Basic earnings per share**Minus (-) represents loss

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

11

FY12/2024

Sales Forecast by Service Category
Accelerating revenue growth is expected to be driven by “Software service” sales, with recurring revenue growth expected to
outpace the growth in 2023.

FY2024Full-year forecast(Millions of yen)
Cloud service

FY2023Full-year

FY2024
1H forecast

YoY ratio

FY2023
1H

YoY ratio

8,600

5,236

+64.3%

3,600

2,141

+68.1%

7,950

4,587

+73.3%

3,300

1,824

+81.0%

Marketplace

650

649

+0.2%

300

318

-5.6%

Packaged system

9,000

10,149-11.3%

4,400

5,248

-16.2%

Software sales

2,800

2,983

-6.1%

1,200

1,546

-22.4%

Operation and support service

6,200

7,166

-13.5%

3,200

3,702

-13.6%

Total

17,60015,385+14.4%

8,000

7,390

+8.3%

Recurring revenue

14,80012,401+19.3%

6,800

5,844

+16.4%

84%

81%

-

85%

79%

-

Software service

Recurring revenue ratio

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12

FY12/2024

Breakdown of Changes in Operating Profit Forecast
Higher revenue is expected to absorb the increase in personnel expenses and sales promotion expenses.

Cost of sales

Operating profit/loss•(Millions of yen)
Increase in revenue+2,215•
Others+52

FY2023
Increase in Increase in Increase insales
cost of sales personnel
expenses promotion-5
expenses
-226
-85

50

Amortization expenses is expected to increase due toexpansion of functions of cloud software, etc.
Development costs is expected to peak out since the majorityof the initial development has been completed

FY2024
Forecast

SG&A expenses, etc.
Increase in amortization expense of cloud software -274
Decrease in development costs +213••

-1,902

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Personnel expenses are expected to increase due to active
hiring of high-performing personnel and strengthening ofrecruitment and training.
Sales promotion expenses are expected to increase since theCompany plans to strengthen advertising and sales promotion
at the timing of product releases.

13

FY12/2024

Dividend Forecast
Regarding dividend for FY12/2023, the Company plans to pay 1 yen as planned.
Dividends for FY12/2024 are currently undetermined.

Dividend per share(Yen)

Explanation
・Although loss was recorded in FY12/2023, the Company plans to
pay a dividend based on the status of retained earnings andprogress of the medium-term management plan.

FY2023

FY2024(Planned amount at theend of the fiscal year)(Forecast)Interim dividend

Undecided

0.00 yen

Year-end dividend

Undecided

1.00 yen

Undecided

1.00 yen--

Annual dividend
Consolidated dividend
payout ratio

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

・Taking into account the progress of the Medium-Term
Management Plan , the Company will consider the
implementation of dividend for FY12/2024.
・In the medium to long term, the Company aims to implement
shareholder returns that achieve both profit growth and improved
capital efficiency.

14

Summary

P2

Business Results for the FY12/2023

P4

Results Forecasts for FY12/2024

P10

Progress of Medium-Term Management Plan (2022-28)

P15

Supplemental Information

P26

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15

Medium-term management plan (2022-28)

Service Area
The Company’s cloud software can conduct total management of data transactions by connecting with other systems.

LegendBusiness support software (packaged-type)
Business support software (cloud-type)

Same products
as the right

Software forelectronic bookstorage act

Ancillary products (DX solutions)Websitecreation tool

Accounting
systemOrdering platform
Travelagencies

Data linkage“Seller” and “buyer” groups that can bematched by digitization of ordering business

Mobile phone
shops

Auto
maintenanceshops

Auto body
shops
GroupwareNon-mobility sector
Bus operators

Ordering ofparts

Service stations

Human resources
systemBroadleaf
Service

Payment
Service

Machine tool
dealers

Ordering ofvehiclesUsed cardealers

Mobility sector

Auto electricalequipment
shops

Auto parts
dealers
Auto glass
shops

Auto recycle
shops

Work analysis
SoftwareFinancial system

Radiator shops

etc.

Ordering ofservices

etc.
etc.

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16

Medium-term management plan (2022-28)

Service Scalability
Service linkage is an important factor that leads to the expansion of usage-based fee and the accumulation of valuable data.
Expansion

RecipientIndustries that cloud business support software are provided or planned to be provided
Auto
Auto bodymaintenance
shops
shops

The Company’s service

Used cardealers

Auto parts Auto recycle Auto glass
dealers
shops
shops

Industries provided withpackaged business support software

Electricalequipment
MobileMachineand radiator phone shop tool dealers
shops

Open EDI

1

2

2

1

2

2

2

EC

2

2

2

1

1

2

2

Software for the ElectronicBook Storage Act

2

2

2

2

2

2

2

Website creation tool

1

1

3

3

3

1

3

Work analysis software

3

3

3

3

3

3

Settlement agency

2

2

2

1

1

Data analysis

3

3

3

3

Employee benefits

1

1

1

Operational assistance22

Generative AI

2

Fraud detection

Travelagenciesand bus
operators

OthersFinancecompany

Systemcompany

3

Others3

Ordering platform

Other services(secondary
products, etc.)

AI function

Data linkage(Financial)

3

3

3

3

3

3

3

3

1

2

2

3

3

3

3

3

3

1

1

1

1

2

2

2

2

2

2

2

2

2

2

2

2

2

2

3

Loan

2

2

2

2

Insurance

3

3

3

3

3
1

1

3

3

1

3

2

Operating environment

3

2

2

2

IT infrastructures2

Development environment

Expansion
1

Conventional service range

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+2

New service range expanded by cloud transition+

3

Range where services can be further expanded

17Medium-term management plan (2022-28)

Review of 2022-2023
The number of cloud software users has been steadily increasing, and sales of cloud software were in line with the plan.
In terms of financial results, both revenue and loss exceeded the plan for the second consecutive year.

Cloud software

Business results

Cloud software sales were in line with plan

Revenue and loss exceeded the planfor the second consecutive year

• Strong acquisition of new clients
ReasonA pricing structure that is easier to adopt

Highlights• Sales of packaged software for non-mobility sector
exceeded the plan

• Strong average monthly sales
ReasonReasonRecovery from the COVID-19 pandemic

Adoption of paid options is strong• Transition of existing clients is partially delayed.
Auto maintenance shops, auto body shops

Lowlights

Trends within the scope of the plan
Auto recycle shops, auto glass shops

The pace of transition is delayed due torequests for additional functions

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

• Sales of the software compliant with the Electronic Book
Storage Act, an ancillary product, fell short of the plan

ReasonThere is a gap in the perception of system revisions,so some clients are showing a cautious stance toward
adoption of the service.

18

Medium-term management plan (2022-28)

Future Outlook
The Company strategically review plans for cloud transition in consideration of client needs and the situation of some products.
We expect to achieve record-high financial results in 2026 even after the performance plan is updated.

Strategic change

Reviewed plans for cloud transition to leverage opportunities for medium-to long-term increase in LTV
1. To take full advantage of the timing of switching to cloud software
Transition to cloud software+ Reflect client needs and realize linkage with other systems+ Proposals for optional functions and ancillary products

Reason⇒ Additional sales resources will be required,
but it will lead to increased data-transactions in the future and higher LTV over the medium to long term
2. Due to the slow transition to cloud software for auto recycle shops and auto glass shops⇒ No changes to the plan to complete the transition to cloud software by 2028

1. Updated sales plan for “Software service” (up to FY2026) & Updated outlook for cloud indicators
ReasonImpactDue to revision of cloud software transition plan

2. Updated sales plan for "Marketplace" (up to FY2026)
ReasonDue to the revision of cloud software transition plan for sellers (auto parts dealers and auto recycle shops)⇒ Revised performance plan up to FY2026(no change in plan for achieving record-high performance in FY2026 even after the update)

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19

Medium-term management plan (2022-28)

Progress and Latest Outlook for Cloud Indicators (1)No change in the plan to achieve the cloud transition rate of 100% in 2028.
The Company expects an increase in the number of clients starting with fewer licenses than expected when switching.

Cloud transition rate

Number of licenses (standard version)(license)

100%

40%

24,00030%

16,000

15%

6,856
2023

2024

2023

2028

Legend:ResultInitial plan

2024

2028

Latest outlook•

2024-2025 is a year with a large number of contract renewals.

••

The rate is expected to increase more gradually than initiallyanticipated due to revision of plan for cloud software transition.

The number is expected to increase more gradually than initiallyanticipated due to revision of plan for cloud software transition.

•

Since the cloud software is design to add licenses easily, there
are clients who start using the software with fewer licenses than
expected when switching to cloud software.

•

The Company considers measures to encourage addition oflicenses.

•

No changes to plan for cloud transition rate of 100% by 2028.

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20

Medium-term management plan (2022-28)

Progress and Latest Outlook for Cloud Indicators (2)Average monthly license sales is expected to exceed the plan, and the user retention rate is expected to become even more stable.
By 2028, the Company expects higher-than-planned average monthly sales to offset lower-than-planned licenses.

Average monthly license sales (standard version)

User retention rate(yen/month)

24,00099.6%

23,00099% or more

22,178

2023

2024

2023

2028

Legend:ResultInitial plan

2024

2028

Latest outlook•

The number of users adopting optional functions are increasing.

••

Going forward, the average monthly sales is expected to risefurther since more semi-major clients with high average monthly
sales will switch to cloud software.

Even though the number of new clients was higher than
expected, the Company maintains a user retention rate of 99.6%.

•

As the ratio of existing users rises, the user retention rate is
expected to become even more stable.

•

It is expected to maintain above 99% in 2024 and beyond.

•

The sales is expected to reach 24,000 yen per month at the endof 2024 and is expected to continue increasing moderately.

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21

Medium-term management plan (2022-28)

Performance Plan
Performance plan for 2024-2026 was updated to reflect the revision of the transition plan and trends such as inflation of costs.
The plan to achieve record-high performance in 2026 remains unchanged, and the plan for 2028 remains unchanged.

(Billions of yen)

FY2019FY2022

FY2023

FY2024Plan

FY2024
Forecast

FY2025
Old plan

FY2025
New plan

FY2026
Old plan

FY2026
New plan

FY2027Plan

FY2028Plan

Revenue

22.6

13.8

15.5

18.5

17.6

22.0

20.5

25.5

24.0

29.0

32.5

Operating profit *

4.5

-2.9

-1.9

1.0

0.05

3.3

1.5

6.7

4.8

10.0

13.0

Operating margin

20%

-

-

5%

0.3%

15%

7%

25%

20%

34%

40%

Profit attributable toowners of the parent *

3.1

-2.4

-1.5

0.6

0.04

2.0

1.0

4.2

3.2

6.3

8.0

*Minus (-) indicates a loss
NOTE) Planned figures and old planned figures were announced on February 9, 2022, and forecasts and new planned figures were announced on February 9, 2024.

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22

Medium-term management plan (2022-28)

Sales Plan by Service Category
Growth in “Cloud service” sales is expected to slow down as the plan for cloud software transition has been revised.
Decline in “Operation and support service” sales will slow down since the provision of packaged software will continue in some areas.

FY2022(Billions of yen)
Cloud services

FY2023

FY2024Plan

FY2024
Forecast

FY2025
Old plan

FY2025
New plan

FY2026
Old plan

FY2026
New plan

FY2027Plan

FY2028
Plan

2.6

5.2

10.4

8.6

15.2

11.8

19.9

15.7

25.0

29.1

Software service

2.0

4.6

9.0

8.0

13.6

11.2

18.0

15.1

22.1

25.0

Marketplace

0.7

0.6

1.4

0.7

1.6

0.7

1.9

0.7

2.9

4.1

Packaged system

11.2

10.2

8.1

9.0

6.8

8.7

5.5

8.3

4.0

3.4

Software sales

3.5

3.1

2.5

2.8

2.6

2.6

2.5

2.9

2.2

2.0

Operation and support service

7.7

7.1

5.6

6.2

4.2

6.1

3.0

5.4

1.8

1.4

Revenue

13.8

15.5

18.5

17.6

22.0

20.5

25.5

24.0

29.0

32.5

Recurring revenue ratio*

74%

80%

86%

84%

88%

87%

90%

88%

92%

94%

*Recurring revenue ratio: (Software service, Marketplace, and Operation and support service) / Revenue
NOTE) Planned figures and old planned figures were announced on February 9, 2022, and forecasts and new planned figures were announced on February 9, 2024.

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23

Medium-term management plan (2022-28)

Ordering Platform Penetration Plan
Despite the impact of revised plan for cloud software transition, the plan to penetrate ordering platform by 2028 is unchanged.
As the number of users is expected to increase by about 7 times, the plan of 4.1 billion yen for 2028 will be within the target range.

Marketplace sales plan

Outlook of the numbers of users

4.1 billion yen

23,000 companies

About
6 timesAbout
7 times

Cloud ordering platform user
(Standard function)

3,500 companies

0.7 billion yen

Conventional ordering platform users(Optional function)
2022

Legend:2026

Initial plan

2028

Current plan

NOTE)Number of companies is auto maintenance shops users.

Reasons for Revision of the Plan in 2024-2026

The Plan for 2028

Impact of revision in the plan for cloud software transition

The plan of 4.1 billion yen is within the target range

Marketplace sales are expected to remain until 2026 since the transition

As there are no changes to the plan to complete the transition to cloudplan of cloud software for sellers (auto part dealers and auto recycle

software by 2028, the number of users of ordering platform is expected

shops) has been revised.

to increase by about 7 times by 2028.

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24

Medium-term management plan (2022-28)

Scalability of the Ordering Platform
Since the cloud ordering platform is an open platform, non-users of the Company’s cloud software can join in as well.
Collaboration with car manufacturer-affiliated auto parts dealers will lead to the expansion of the target market.

Expansion of user base of the ordering platform

Market3,100 companies

Manufacturer-affiliatedauto parts dealers
Affiliatedauto partdealers
100
companies

Auto
parts
dealersandauto
recycleshops(Mainseller)Manufactureraffiliated autoparts dealer A

ToyotaMobility Parts
Co., Ltd.

Conventional areas

Users ofoursoftware3,000
companies

Manufacturer-affiliated(700 billion yen)

Manufactureraffiliated autoparts dealer B

Our clients(auto parts dealers)

Our clients(auto maintenanceshops)

Users of our software 23,000 companies※Genuine partsNon-user of our software

Manufacturer-affiliatedcar dealers that provide auto
maintenance services(16,000 companies)
Non-manufactureraffiliated(500 billion yen)Users ofcompetitors’ software(24,000 companies)※Premium parts,
recycled parts※Estimated by Broadleaf

Other users 40,000 companies

Auto maintenance shops (Main buyers)

Auto repair part transaction market
63,000companies(1.2 trillion yen)
Source: Created by Broadleaf based on Yano ResearchInstitute's "2019 Auto Aftermarket Overview"

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25

Summary

P2

Business Results for the FY12/2023

P4

Results Forecasts for FY12/2024

P10

Progress of Medium-Term Management Plan (2022-28)

P15

Supplemental Information

P26

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26

Supplemental Information

List of the Company’s Indicators (1)FY2022

FY2023(Millions of yen)
1Q

1H

Cumulative 3Q

Full-year

1Q

1H

Cumulative 3Q

Full-year

Recurring revenue

2,367

4,766

7,481

10,294

2,876

5,844

8,983

12,401

Recurring revenue ratio (%)

73%

73%

74%

74%

79%

79%

80%

81%

FY2022

FY2023End of 2024

(companies)
End of 1Q

End of 2Q

End of 3Q

End of 4Q

End of 1Q

End of 2Q

End of 3Q

End of 4Q

OutlookCompanies using business support software

38,09838,35438,54939,34539,547

39,771

39,95539,985ー

Mobility sector *36,37336,65036,85837,64337,85538,09538,28938,350ー

Non-Mobility sector *

1,725

1,704

1,691

1,702

1,692

1,676

1,666

1,635

ー

33,57833,85334,06634,357

34,61834,88735,12735,229

ー

395

991

1,557

2,231

2,973

3,744

4,527

5,381

ー

Standard edition

274

867

1,433

2,099

2,831

3,604

4,382

5,222

ー

Existing client

118

405

721

1,094

1,492

1,937

2,370

3,010

ー

New client

156

462

712

1,005

1,339

1,667

2,012

2,212

ー

Specific edition

121

124

124

132

142

140

145

159

ー

33,18332,86232,50932,126

31,64531,14330,60029,848

ー

4,520

4,501

4,483

4,988

4,929

4,884

4,828

4,756

ー

1.2%

2.9%

4.6%

6.5%

8.6%

10.7%

12.9%

15.3%

30%

Target companies for cloud software**
Cloud software user companies

Packaged software users
Non-Target of cloud software

Cloud transition rate

*Mobility sector: auto maintenance shops (& service stations), auto body shops, auto parts dealers, auto recycle shops, used car dealers, auto electrical equipment shops, radiator shops
Non-mobility sector: 13 industries: Mobile phone shops, machine tools dealers, travel agencies, and bus operators**Of the 13 industries, the industries targeted for cloud software in the medium-term management plan are auto maintenance shops (& service stations), auto body shops, auto parts dealers, and auto recycle shops
FY2022
1Q

1H

FY2023Cumulative 3Q

Full-year

1Q

1H

Cumulative 3Q

Full-year

When the contract expires*switch to cloud software

ー

35%

45%

44%

76%

78%

76%

82%

switch to packaged software (monthly)

ー

65%

55%

56%

24%

22%

24%

18%

*The denominator is the industry in which the cloud software has been released (e.g., auto maintenance shops and auto body shops).
Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

27

Supplemental Information

List of the Company’s Indicators (2)FY2022

FY2023End of 2024

(license)
End of 1Q

End of 2Q

End of 3Q

End of 4Q

End of 1Q

End of 2Q

End of 3Q

End of 4Q

Outlook

1,306

2,056

2,857

3,620

4,656

5,649

6,721

8,156

ー

Standard Edition

307

995

1,790

2,523

3,490

4,441

5,477

6,856

16,000Existing client

136

483

950

1,381

1,970

2,552

3,166

4,244

ー

New client

171

512

840

1,142

1,520

1,889

2,311

2,612

ー

Specific edition

999

1,061

1,067

1,097

1,166

1,208

1,244

1,300

ー

Number of licenses** License refers to “Company license” and “Job license”
FY2022

FY2023End of 2024

(yen/month)
March

June

September

December

March

June

September

December

Outlook

ー

ー

ー

ー

ー

ー

ー

ー

Standard Edition

17,30819,14821,047

21,27921,165

21,424

21,561

22,17824,000Existing client

18,80821,15023,326

24,074

23,837

24,32424,55324,823ーNew client

16,115

17,261

18,47017,90017,701

17,507

17,461

17,881

ー

ー

ー

ー

ー

ー

ー

ー

ー

ー

Average monthly license sales*

Specific editionー* License refers to “Company license” and “Job license”

FY2022

FY2023End of 4Q
Cloud software user retention rate*
Number of cloud software users (companies)

1Q

1H

End of 2024

Cumulative 3Q

Full-year

Outlook

ー

99.6%

99.6%

99.6%

99.6%

2,099

ー

ー

ー

ー

99% or moreー**Cloud software user retention rate: Weighted average monthly user retention rate for the cumulative periods up to full-year
Monthly user retention rate: 1-{number of monthly cancellations/ (number of cloud software users at the end of the previous fiscal year + number of newly acquired companies}

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

28

Supplemental Information

Ancillary Products (Subscription-Type Software)
Main ancillary products (subscription-type software)(license)

Dencho.DX
Electric
Book.DX

BL.Homepage( Premium version)
3,474

2,570
2,145

1,724
1,459
890

864

553
1Q

225

920

589
2Q

912

958

978

976

1,018

1,026

634

683

707

718

770

787

3Q

4Q

1Q

2Q

3Q

4Q

FY2023

FY2022Monthly fee

OthersSoftware for Electronic Book Storage Act(“Dencho.DX”)

About 8,000 yen

Usage-based fee, initial installation cost

Website creation tool(“BL.Homepage Premium”)

About 20,000 yen

Option, initial installation cost

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

29

Supplemental Information

Sales Trend of Cloud Service Expected in the Future“Cloud service” sales plan
(Billions of yen)

New platform services
Auto financing, logistics MaaS, etc. *Not included in the performance plan
Marketplace
Ordering platform

4.1
2.9

Software service
Cloud software and DX solutions

0.7
25

0.7
0.7

22.1
15.1

11.2
0.6
0.7
2

4.1

FY2022(Result)

FY2023(Result)

8

FY2024(Forecast)

FY2025(New Plan)

FY2026(New Plan)

FY2027(Plan)FY2028(Plan)NOTE) Planned figures were announced on February 9, 2022, and forecasts and new plan figures were announced on February 9, 2024.

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

30

Supplemental Information

Release Plan of Cloud Software

FY2022

FY2023

Auto maintenanceshops

FY2024(1)

FY2025

FY2026FY2027

FY2028(1) FY2024 1Q
Expansion of functions forlarge-sized clients ofauto maintenance shops

Auto body shops
Recycle shops①

Auto glass shops(2)

Auto parts dealers(2) FY2024 2Q
Release of cloud software
for auto parts dealers

Used car dealers
Auto electricalequipment shops
Radiator shops

About Cloud Software
Released industries: October 2021 Auto maintenance shops, auto body shops
September 2023 Auto glass shops
October 2023 Auto recycle shops
Industries to be released this fiscal year: 2Q 2024 Auto parts dealers
Industries to be released during the medium-term management plan: Used car dealers, auto electrical equipment shops, and radiator shops

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

31

Supplemental Information

Service Structure (Cloud Software)
Job license

Company license

Additional Employee
Account

Select the required licenses and options
according to the business size and contents
Select a plan according
to the business size
(mandatory)＋

Select a license
according to the job
type of an employee
経営者

Clients will select a plan from the company license
menu and select necessary job licenses in addition.
When multiple people use the functions of company
license and job license, purchase of additional
employee account is necessary according to thenumber of users. There are also other service menus
such as database and client support.

＋

Added when
multiple people use
the functions ofcompany license andjob license
アカウント①

Start plan

Corporate manager

Account-1

Standard plan

Front desk

Account-2

Total plan

Mechanic

Account-3＋

OptionOnline reservation

Vehicle examinationline linkage
Select required
functions

Database

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

Insurance linkage

ClientsupportSlip
issuance32

Supplemental Information

Understanding of Changes in Software Sales due to Cloud Transition(The Case of Auto Maintenance Shops and Auto Body Shops)

If the Company continues to sell packaged software in 2022 and beyond
About 1/6 of user companies renew their contracts each year,
but there is a wave in the number of contract renewals depending on
the year.
Sales of licenses (6-year usage rights)
Target of each year: Companies who renew the contract for packaged software (About 1/6 )Accounting method: License fee for 6 years is booked in lump-sum as sales
in the year when the contract is renewed.

Sales of operation and support services
Target of each year: All users of packaged software
Accounting method: Monthly sales

FY2021

FY2022

FY2023

FY2024FY2025

FY2026

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

FY2027

FY2028

If the Company starts selling cloud software (Green) from 2022
About 1/6 of companies using packaged software will switch to cloud
software each year. Average sales are expected to rise after thetransition completes due to different licensing systems
・For the year in which the contract is switched, the period after the contract isconcluded will be is booked as sales ().
Therefore, sales from the following year onward () will be roughly doubled
because sales for 12 months are fully booked
・Sales of operation and support services are received from users of packaged
software, so it will gradually decline as the transition proceeds.

FY2021

FY2022

FY2023

FY2024FY2025

FY2026FY2027

FY202833

Supplemental Information

Cases of Offering Packaged Software under the Monthly Subscription Contracts
In certain cases, some clients may continue to use packaged software under monthly subscription contracts for a limited period.

Case 1

A client who wishes to use a specific function on cloud software
Packaged software
monthly contract

If a client's contract for packaged software
expires before a desired function is
implemented:

The client may continue to use the packaged software undermonthly subscription contract until the desired function
becomes available on our cloud software.

Packaged software
6-year contract

Cloud software
monthly contract

Switch after the desired function
is implemented on cloud software
January
2016

January2022

Case 2 A single client who has multiple lease contracts
Packaged software (A)monthly contract

If a client has multiple 6-year contracts
for packaged software, each with
Packaged software (A)6-year contract

different expiration dates:

Cloud software （A/B）
monthly contract

Packaged software (B)6-year contract

The client may continue to use the packaged software undermonthly subscription contracts after each contract expires,
until all their contracts have expired.
Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

Switch after all the client’s
contracts have expired
January
2016

January
2017

January2022

January2023
34

Supplemental Information

Reason for Switching to Cloud Software when the Previous Contract Expires
If existing clients who have lease contracts of packaged software for 6 years switch to cloud-based software before theexpiration of the contract, negative sales will be recorded.

In the case of cloud software*

Usage fees - trade-inrecorded as sales

Usage
fee for
6 years

In the case of packaged software with multi-year lease contract

If the contract was changed at
this timing, usage fee will bemonthly while trade-in will be
one year, so trade-in becomeslarger than usage fee, resulting
in recording of a negative sales

Usage
fee for
6 years

Usage
fee for
6 years

Trade-in

下取り
Trade-inContract
concluded six
years ago

Fifth year of
the contract+Additional license+Volume charge
Monthly
usage fee

Trade-inTrade-inContract
concluded six
years ago

Fifth year of
the contract

Expiration ofcontract

Switch tocloud software
upon expiration ofcontract

Sales recorded(monthly)

Expiration ofcontract

Renewal ofcontract before
expiration*The same applies when selling packaged software under a monthly subscription contract

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

35

Supplemental Information

Explanation of Service Category
Cloud service

Packaged system

Software service

Software sales

Sales related to monthly subscription-type software[Product type]・“.c series”, a cloud business support software
・“.NS Series”, a packaged business support software ＊1
・“Dencho.DX”, a software compliant with the Electronic Book Storage Act
・“CarpodTab”, a tablet-based business support tool・“BL.Homepage”, a website creation and management tool・Other monthly fee-based services[Sales type]・Fixed monthly fee, usage-based fee, installation support fee, etc.

Marketplace
Sales related to ordering platform[Product type]
・“Cloud Ordering Platform“, an open-type EC/EDI・“BL Parts Order System”, an automotive parts transaction network
・“Parts Station NET” a auto recycle parts transaction network[Sales type]・Basic fee, transaction fee, settlement agency fee, etc.

*1 Provision in the form of monthly subscription is limited until the scheduled transition period to “.c series”.
Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

Sales related to the sale of licensed software[Product type]・“.NS Series” , a packaged business support software ＊2
・“OTRS”, a work-analysis software
・Other software and IT tools
・Devices such as PC and printers[Sales type]・Leasing sales, one-time sales, installation support fee, etc.

Operation and support service
Sales related to the use of licensed software[Product type]・Network and database delivery services
・Client support and device maintenance services
・Supplies such as stock form paper[Sales type]・Monthly fixed fee, one-time sales, etc.

*2 New leasing sales of “.c series” to target industries is terminated.
36Supplemental Information

Corporate Profile

Company Name

Broadleaf Co., Ltd

Representative

Kenji Oyama, Representative Director and President

Listed on

Tokyo Stock Exchange Prime Market (3673)

SectorInformation and telecommunication

Founded/established

December 2005/September 2009

Capital stock

7.148 billion yen (consolidated)

Business Year

From January 1 to December 31

Business Outline

Based on our proprietary Broadleaf Cloud Platform, we provide SaaS cloud services, marketplace services, andpartner programs that enable functions and service collaboration with a diverse range of players. Mobility sector isused as a IT solution that leads to business opportunities in various industries and industries.

Head Office

8th Floor, Glascube Shinagawa, 13-14, Higashi-Shinagawa 4-chome, Shinagawa-ku, Tokyo

Domestic sites

26 sales offices/3 development offices

Main Subsidiaries

Tajima Co., Ltd, SALES GO Corporation, SpiralMind Corporation

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

37

Disclaimer

Statements contained in these materials regarding operating results and future projections,
These are estimates based on information available to the Company at the time the materials were prepared,
Which are subject to potential risks and uncertainties.
Accordingly, due to a variety of factors, actual results may differ materially.
Please note that these forecasts may differ from the forecasts.

Contact Information
Broadleaf Co., Ltd
Investor Relations OfficeE-mail: bl-ir@broadleaf.co.jp

Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.

38