Feb. 14 2019

FY2018 Financial Results

1Q FY2019 Presentation Material

1Q FY12/2019

Business Results Briefing

株式会社ブロードリーフ［東一 3673］
May. 10 2019

Broadleaf Co., Ltd. All rights reserved.

Broadleaf Co., Ltd.
TSE 1st Section: 3673

Contents

1. Overview of 1Q Business Results ‥‥‥‥‥‥

01

2. Results Forecasts‥‥‥‥‥‥

09

3. Topics‥‥‥‥‥‥

15

Appendix: Corporate Profile, Revenue Category, etc.
Note: Under IFRS, figures smaller than the units of display are rounded off.

Broadleaf Co., Ltd. All rights reserved.

01

Chapter 1

Overview of 1Q Business Results

Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of 1Q Business Results

02

PL Summary (Consolidated, IFRS)
Achieved an increase in both revenue and profit, making good progress towards theforecast for the first half.
(¥ million)

Revenue

FY2019FY2018

1Q

1Q

YoY change

YoY (Ratio)

4,925

4,433+492+11.1%

Operating profit

420

258+163+63.1%

Profit274

142+132+92.8%¥3.13¥1.61+1.52-Profit per share** Calculated assuming that the stock split (1:2) which took effect on April 1, 2018 was carried out from the beginning of FY12/2018.

Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of 1Q Business Results

03

Revenue by Category (Consolidated, IFRS)Applications(By industry) drove revenue.
(¥ million)

FY2019FY2018

1Q

1Q

YoY change

YoY (Ratio)

Platforms

2,303

2,168+135+6.2%

Basic

1,707

1,599

+109+6.8%

EDI/Payment settlement

228

227+2+0.7%

Support336

316+20+6.4%

Others3127+4+16.4%

Applications

2,622

2,265+357+15.8%

By industry

2,149

1,962+187+9.5%

OTRS121102+19+18.6%

Others352

201+152+75.5%

4,925

4,433+492+11.1%

Total

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Chapter 1 Overview of 1Q Business Results

04

Breakdown of Platform Sales (Consolidated, IFRS)Sales increased mainly in the Basic (PaaS/SaaS and IaaS) and Support (Support service)
categories.
(¥ million)

FY2019FY2018

1Q

1Q

Basic

YoY change

YoY (Ratio)

1,707

1,599+109+6.8%

1,195

1,118+77+6.9%

512

481+6.6%

228

227+32+2

PSF*

151

151-1-0.5%

BLP/CPT*

78

75+3.0%336

316+2+20

Support service

163

143+20+14.3%Provision of consumables

172173-0-0.2%

3127+4+16.4%

2,303

2,168

+135

+6.2%

PaaS/SaaS
IaaS
EDI/Payment settlement

SupportOthers
Total platform sales

+0.7%

+6.4%

* PSF: Settlement agency service fee in the recycled parts market
BLP: BL Parts Order System use fee
CPT: CarpodTab use fee
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Chapter 1 Overview of 1Q Business Results

05

Breakdown of Application Sales (Consolidated, IFRS)Sales remained solid in the Automotive, Non-automotive and OTRS categories.
(¥ million)

By industry

FY2019FY2018

1Q

1Q

YoY change

YoY (Ratio)

2,149

1,962+187+9.5%

1,787

1,643+144+8.8%362

320+43+13.3%

OTRS

121102+19+18.6%

Others352

201+152+75.5%

2,622

2,265+357+15.8%

Automotive
Non-automotive

Total application sales

Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of 1Q Business Results

06[Reference] Revenue by Previous Category (Consolidated, IFRS)(¥ million)
Business application software

FY2019FY2018

1Q

1Q

YoY change

YoY (Ratio)

3,117

2,689+428+15.9%

System support

336316+20+6.4%

Maintenance163

143+20+14.3%

Provision of consumables

172

173-0-0.2%

1,472

1,428+45+3.1%

1,213

1,174+39+3.3%

228

227+2+0.7%

PSF

151

151-1-0.5%

Order placement and acceptance78

75+2+3.0%

3127+4+16.4%

4,925

4,433+492+11.1%

Network service
Stock
Transaction

OthersTotalBroadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of 1Q Business Results

07

Breakdown of Increase/Decrease in Operating Profit (Consolidated, IFRS)
Operating profit increased significantly due to higher sales of Broadleaf and Tajima,
which offset higher expenses.
A rise in sales+492

Operatingprofit258+ shows the factor for an increase in operating profit fromthe year-ago level- shows the factor for a decrease in operating profit fromthe year-ago level

A rise incost of sales-224
Includes a decrease incloud-related software
depreciation+90

FY2018 1Q(¥ million)

Decreases inother costs+47
A rise inpersonnel
expenses-72

Operatingprofit420

A rise in sharerelated
expenses-81

FY2019 1Q
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Chapter 1 Overview of 1Q Business Results

08

BS Summary (Consolidated, IFRS)Cash deposits decreased due to the payment of income taxes, dividends and others.
(¥ million)

FY2019End of 1Q

End ofFY12/2018 YoY change

Main factors forincrease/decrease

Current assets

6,765

10,619-3,854

Decrease in cash and deposits -3,368

Non-current assets

21,254

18,794+2,460

Increase in property, plant and equipment +856
Increase in intangible assets +591

28,01929,413-1,394

6,573

7,913

-1,340Decrease in income taxes -852

653466+186

Increase in long-term interest-bearing debt +161

Total liabilities

7,226

8,379

-1,154

Total shareholders’ equity

20,793

21,033-240

28,01929,413-1,394

Total assets
Current liabilities
Non-current liabilities

Total liabilities and shareholders’ equity

Recognition of profit +274
Decline due to dividend payout -568

Broadleaf Co., Ltd. All rights reserved.

09

Chapter 2Results Forecasts

Broadleaf Co., Ltd. All rights reserved.

Chapter 2 Results Forecasts

10Results Forecasts (Consolidated, IFRS)No change to results forecasts (announced on February 14, 2019).
FY2019FY2018Full-year
Forecasts

Full-year

Revenue

22,00021,285+715+3.4%

10,60010,090+510+5.1%

Operating profit

4,500

4,115+385+9.4%

1,700

1,542+158+10.2%

Profit2,800

2,656+144+5.4%

1,000

998+2+0.2%

Profit per share¥32.07¥30.36+¥1.71-¥11.45¥11.39+¥0.06-(¥ million)

YoYchange

YoY(Ratio)FY2019FY2018

1HForecasts

1H

YoY
changeYoY(Ratio)

Broadleaf Co., Ltd. All rights reserved.

Chapter 2 Results Forecasts

11Revenue Forecasts by Category (Consolidated, IFRS)Revenue are expected to increase in both platforms and applications.
FY2019FY2018Full-year
Forecasts

Full-year
Results

YoY
ChangePlatforms

9,900

9,543+357+3.7%

4,700

4,552+148+3.3%

Basic

7,270

7,175

+95+1.3%

3,470

3,392

78+2.3%

EDI/Payment settlement

1,010

935

+75

+8.0%

480453+27+6.0%

Support

1,320

1,314+6+0.5%

650

649

+1+0.1%Others300

118+182+153.2%100

58+42+73.8%

Applications

12,10011,742+358

+3.0%

5,900

5,538+362+6.5%

By industry10,200

10,176+24+0.2%

4,950

4,914+36+0.7%

OTRS

600

390+210+53.8%

250

181+69+38.1%

Others

1,300

1,175+125+10.6%700

443+257+58.2%

22,00021,285+715+3.4%

10,60010,090+510+5.1%(¥ million)

Total

YoY(Ratio)

FY2019FY2018

1HForecasts

1HResults

YoY
ChangeYoY(Ratio)

Broadleaf Co., Ltd. All rights reserved.

Chapter 2 Results Forecasts[Reference] Revenue Forecasts by Previous Category (Consolidated, IFRS)FY2019(¥ million)

FY2018Full-year
Full-year
Forecasts

YoYchangeYoY(Ratio)

FY2019FY20181H
Forecasts

1H12

YoY
changeYoY(Ratio)Business application software

14,36014,206+154

+1.1%

6,910

6,596+314+4.8%

System support

1,320

1,314

+6+0.5%650

649+1+0.1%

Maintenance

650

601

+49+8.2%

320

291+29+10.1%

Provision of consumables

670

713

-43-6.0%330

359-29-8.0%

6,320

5,765

+555

+9.6%

3,040

2,844

+196

+6.9%

Stock

5,010

4,711

+299

+6.3%

2,460

2,334+126+5.4%

Transaction

1,010

935+75+8.0%

480453+27+6.0%PSF

650

634+16+2.5%

310

304+6+2.1%

Order placement and acceptance360

301+59+19.6%

170

149+21+13.9%

300

118+182 +153.2%

10058+42+73.8%

22,00021,285+3.4%

10,60010,090

+510

+5.1%

Network service

OthersTotal+715

Broadleaf Co., Ltd. All rights reserved.

Chapter 2 Results Forecasts

Breakdown of Increase/Decrease in Operating Profit (Consolidated, IFRS)
Cost rises are expected to be offset by an increase in sales.

FY2018(¥ million)+ shows the factor for an increase inoperating profit from the year-ago level- shows the factor for a decrease inoperating profit from the year-ago level

A rise in sales+715

Operatingprofit4,115

13

A rise incost of sales-95
Includes an increase incloud-related software
depreciation-210

A rise inadvertisingexpenses-90

A fall in sharerelated
expenses+2
A rise inpersonnel
expenses-80

Operatingprofit4,500
Increases inother costs-67

FY2019(forecast)
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Chapter 2 Results Forecasts

14Dividends
No change to the initial forecasts (announced on February 14, 2019).
¥12.00(39.5%)¥11.00(50.4%)

Year-end¥5.50

Interim¥5.50
FY2017*¥13.00(40.5%)

Year-end¥6.50

Interim¥5.50

FY2018Year-end¥6.50(Forecast)Interim¥6.50(Forecast)

FY2019(Forecast)* Amount after adjustment for the stock split (1:2), which took effect on April 1, 2018
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15

Chapter 3Topics

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Chapter 3 Topics

Strengthened the promotion of services with a focus on AI and the cloud.

16Participated in IAAE 2019, the 17th International Auto Aftermarket Expo.

◼ International Auto Aftermarket Expo 2019
One of Japan’s largest conventions in which the latest solutions
for domestic and overseas automotive aftermarkets are exhibited.
The actual number of exhibitors and visitors totaled 296 and16,259, respectively, in 2019.
Broadleaf Co., Ltd. All rights reserved.

Chapter 3 Topics

Initiatives for Full-Scale Overseas Promotion of OTRS,
Operation Analysis Software

17

Participated in the Hannover Messe in Germany.

◼ Hannover Messe
An exhibition in which latest technologies and solutions arepresented for manufacturers.
In 2018, the actual numbers of exhibitors and visitors totaled 5,000
and 210,000, respectively.
Broadleaf Co., Ltd. All rights reserved.

Chapter 3 Topics

18

Investment in Strategic Areas
Acquisition of an information portal media for B2B (announced in May 2019)
Acquired shares (67.5%) in Industrial Innovation Institute Inc., which operates “Monodukuri.com”, awebsite that supports manufacturing companies’ process innovations and problem-solving, with an eye
on promoting OTRS and realizing the motion bank vision.

Specialized
consultant

Specialized
consultant

Specialized
consultant

Monodukuri.com

Cumulative number of PVs: 3 million
Number of registered users: 17,000

1Generation of new leads for OTRS

2

Business collaboration through consulting
and establishment of OTRS

3Acquisition of vendors allied to provide
solutions

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19

Appendix

Corporate Profile, Revenue Category, etc.

Broadleaf Co., Ltd. All rights reserved.

Appendix

20

Corporate Profile
Corporate Name

Broadleaf Co., Ltd.
Representative Director, President and CEO
Kenji 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 (consolidated)

Business Outline

IT network system to support automotive aftermarket operators and provision of services on theplatform(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

29 offices in Japan

Development Centers

3 centers in Japan (Sapporo, Tokyo and Fukuoka)
Broadleaf Co., Ltd. All rights reserved.

Appendix

21Explanation of Revenue Category
Classification
Major
category

Mediumcategory

Detailed businesses

Smallcategory- Provision of applications (on a monthly fee basis)

PaaS/SaaS

Basic- Provision of databases for applications (information on automotive parts, vehicles and indexes, data on transportation means,data on tourism spots, etc.)- Provision of basic application functions and middleware

Platforms

EDI/Paymentsettlement

IaaS- Provision of network servers required for the use of applications

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

BLP/CPT
Supportservice

Support- Provision of an electronic system “BL Parts Order System” for receiving/placing orders for automotive parts- Provision of tablet-type operation terminals “CarpodTab” mainly for automotive maintenance companies- Provision of support and hardware maintenance services for clients in varieties of industries

Provision of- Sale of exclusive forms and OA supply goods
consumables
Others- Analysis, processing and provision of a large amount of accumulated anonymization data collected from clients, etc.
- Sale of applications in the By industry category (excluding basic functions)

By industry
Applications(Industries: automotive maintenance, bodywork, sales, parts dealers, recycling, machinery and tool dealers, mobile phone
dealers, travel agencies, etc.)

OTRS- Sale of operation analysis/optimization software

Others- Sale of PC bodies and ancillary devices such as printers

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Appendix

22

Supplementary Explanation of Revenue Category

Sales from platforms
Sales from applications

IT solutions
SaaS

By industry
OTRS
Others

By industry
optionAP(*)

Lump-sumrecognition

PF

Monthly

IaaS

Infrastructure
PF

MonthlyPFPF

Lump-sumMonthly/Lump-sum

Monthly/
Lump-sumPF

Monthly/
Based onvolume of useData analysis

PaaS

PF

BLP/CPT

Provision ofconsumables

Middleware

PSF

Support service

Basic

EDI/Settlement

OthersApplications

Support

Applications

Support/Others(*) Sales from applications in the By industry and OTRS categories will be recognized as sales from SaaS due to the transfer to cloud-based versions.
Broadleaf Co., Ltd. All rights reserved.

Appendix

Supplementary Explanation of Revenue Category(Comparison between Previous and New Category)New sales field

Previous sales field
Business application
software

23Platforms

PaaS / Option (Monthly)

Basic

PaaS / IaaS

System support
MaintenanceProvision ofconsumables

PSF / BLP / CPT

EDI/Paymentsettlement

Support service/Provisionof consumables

SupportData analysis, etc.

OthersNetwork serviceApplications

Stock
By industry (Lump-sum)

By industry

OTRS (Lump-sum)

OTRS

Sale of ancillary devices,etc.

OthersTransaction
OthersBroadleaf Co., Ltd. All rights reserved.

Appendix

24Explanation of Previous Revenue Category
Classification
Major
category

Mediumcategory

Mediumcategory- 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

SystemSupportNetworkservice

Detailed 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 the business 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-type systems

PSF- Operation of recycled parts distribution network “Parts Station NET” that shares inventory information on
recycled parts
Collecting fees as transaction amount settlement agency for parts dealing

Order placement
and acceptance- Provision of computerized ordering system for automotive parts- Provision of tablet-type operation terminals, CarpodTab, to maintenance business operators, etc

Transaction

Others- Products and services other than the above

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.jp