Feb. 14 2019

FY2018 Financial Results

FY2018 Financial Results

FY12/2018

Business Results Briefing

株式会社ブロードリーフ［東一 3673］
Feb. 14 2019

Broadleaf Co., Ltd. All rights reserved.

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

Contents

1. Overview of FY12/2018 Business Results

‥‥‥‥

01

2. Results Forecasts for FY12/2019

‥‥‥‥

12

3. Medium-Term Management Plan (2019-2021) ‥‥‥‥

19

Appendix: Corporate Profile, Sales Fields, Press Releases, etc.
Note: Under IFRS, figures smaller than the units of display are rounded off. Under Japanese accounting standards,
figures smaller than the units of display are omitted.

Broadleaf Co., Ltd. All rights reserved.

01

Chapter 1

Overview of FY12/2018 Business Results

Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of FY12/2018 Business Results02

Summary(Published on August 3, 2018)

Consolidated results

Revenue and operating profit increased YoY and exceeded forecasts.
Revenue
Operating profit

BL on a non- Taking in user renewals.
Net sales
consolidated basis Operating profit¥21.29 billion (up 17.0% YoY/achievement rate 100.4%)¥4.11 billion (up 36.7% YoY/achievement rate 105.5%)¥19.01 billion (up 10.4% YoY)
¥3.49 billion (up 27.3% YoY)

Turned to profitability thanks to sales strategy focusing on gross profit¥0.16 billion (operating loss of ¥0.08 billion in the previous fiscal year)

Tajima Operating profit

Establishment of thebasis for growthCommencement of services of Broadleaf Cloud Platform

Focused products

Expansion of operation analysis software “OTRS” (up 33.7% YoY)

- As the first step, launched next-generation cloud system “Maintenance.c (start-up version).”- Provided partner program for third parties.

Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of FY12/2018 Business Results

03

PL Summary (Consolidated, IFRS)
Achieved a significant increase in both revenue and profit.
(¥ million)

FY2018FY2017*1

Full-year

Full-year

FY2018*3
YoY Change

YoY (Ratio)

Full-year forecast

Revenue

21,28518,195+3,090+17.0%

21,200Operating profit

4,115

3,011

+1,104+36.7%

3,900

Profit

2,656

1,932

+724

+37.4%

2,500

Profit per share*2¥30.36¥21.81+8.55+39.2%¥28.58*1 Tajima Incorporated was made into a subsidiary of Broadleaf as of July 25, 2017, and the contribution of its net sales to FY2017 results is for five months,
from August to December.
*2 Calculated assuming that the stock split (1:2) which took effect on April 1, 2018 was carried out at the beginning of FY12/2017.
*3 Published on August 3, 2018
Reference: Initial results forecasts (February 14, 2018) Revenue: 20,400; Operating profit: 3,300; Profit: 2,100

Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of FY12/2018 Business Results

04

Sales by Category (Consolidated, IFRS)Sales of Business Application Software and Network Service showed a double-digit increase.
FY2017*1
Full-year

FY2018Full-year(¥ million)

YoY Change

YoY (Ratio)

Business Application Software

14,206

11,737+2,469+21.0%

System Support

1,314

1,264

+50

+4.0%

Maintenance

601

556

+45

+8.2%

Provision of Consumables

713

708

+5

+0.7%

5,765

5,194

+571

+11.0%

4,711

4,177

+534

+12.8%

935

939

-3

-0.4%

PSF

634

642

-8

-1.3%

Order Placement and Acceptance

301

296

+5

+1.6%

Others

118

78

+40

+50.7%

21,28518,195+3,085+17.0%

Network Service
Stock
Transaction

Total*1 Tajima Incorporated was acquired and made a subsidiary of Broadleaf as of July 25, 2017, andthe contribution of its net sales to the results of FY2017 is for five months from August to December.

Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of FY12/2018 Business Results

05

Sales by Category (Non-Consolidated, Japanese Standard)

Sales of Business Application Software also increased significantly on a non-consolidated basis, and higher
sales of Network Service continued.
FY2017Full-year

FY2018Full-year(¥ million)

YoY Change

YoY (Ratio)

Business Application Software

12,55911,069

+1,489+13.5%

System Support

1,227

1,230

-2

-0.2%

Maintenance

576

550

+26

+4.8%

Provision of Consumables

651

679

-28

-4.2%

5,225

4,919

+305

+6.2%

4,171

3,904

+267

+6.8%

935

938

-3

-0.4%

PSF

634

642

-8

-1.3%

Order Placement and Acceptance

300

296

+4

+1.6%

Others

118

76

+41

+54.7%

19,012

17,219+1,793+10.4%

Network Service
Stock
Transaction

Total

Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of FY12/2018 Business Results

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

06

User renewals drove sales in the automotive sector as a result of focusing on that demand.
(¥ million)

FY2018FY2017Full-year

Full-year

YoY Change

YoY (Ratio)

Automotive

9,577

8,194

+1,382+16.9%

Renewed

8,729

7,215

+1,513+21.0%New customers

847

979

-131

-13.4%

Non-automotive

1,806

1,848

-41

-2.2%

Renewed

1,204

1,255

-50

-4.0%

601

593

+8

+1.4%

Others

1,175

1,026

+148

+14.5%

Total

12,55911,069

+1,489+13.5%New customers

Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of FY12/2018 Business Results

07

Growth of Operation Analysis Software “OTRS”
Adopted by a wide range of industries centered on manufacturing, OTRS was on a growth path.
■ Sales trends (BL on a non-consolidated
basis, Japanese standard)
390 million yen■ OTRS(Operation Time Research Software)
Operation analysis/optimization software made based on the methodof Industrial Engineering (IE)
(1) Operation video
recording(2) Factorization of
movements

292 million yen(3) Analysis andelimination of waste

151 million yen(4) Realignment ofoperations

131 million yen(5) Standardization■ Industries that have adopted OTRSFY2015FY2016FY2017FY2018Automobile/transport equipment, general electric, machinery/machineparts, computer/communication equipment, precision instruments,
semiconductor/electric and electronics, metal and resin processing,science, food and medicine, steel and metals, construction, pubic offices
and educational institutions, etc.

Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of FY12/2018 Business Results

08

Breakdown of Increase/Decrease in Operating Profit (Consolidated, IFRS)
Operating profit increased significantly due to higher sales of Broadleaf and effects from consolidating
Tajima, which offset higher expenses.

(¥ 100 million)

A rise in sales+17.9

Operating
Profit30.1

FY2017

A rise incost of sales-3.9

Tajimaoperatingprofit+2.4
A rise inpersonnel
expenses-3.8

A rise inshare-related
expenses-2.5

Broadleaf Non-consolidated

Consolidated
adjustment, etc. Operating
Profit+1.1

41.1

A rise inother SG&A
expenses-0.2

FY2018Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of FY12/2018 Business Results

09

BS Summary (Consolidated, IFRS)(¥ million)

FY2018FY2017

End of FY

End of FY

YoY Change

Main Factors for
Increase/Decrease
Decrease in cash and deposits

Current assets

10,61911,400Non-current assets

18,794

16,663+2,131 Increase in intangible assets

29,41328,063+1,350

7,913

7,478

+436

466

848

Total liabilities

8,379

8,326

Total shareholders' equity

21,033

19,737

Total assets
Current liabilities
Non-current liabilities-782 Decrease in operating receivables+54

28,063(+2,656)+1,296 Decrease by purchase of treasury shares (-1,006)
Decline due to dividend payout

29,413(+1,651)-382 Decline in long-term interest-bearing debt (-376)

Recognition of profit

Total liabilities andshareholders' equity(-344)(+538)(-967)+1,350Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of FY12/2018 Business Results

10

CF Summary (Consolidated, IFRS)(¥ million)

FY2018FY2017Full-year

Full-year

YoY Change

Main factors for increase/decrease
Increase in profit before tax

CF from operating activities

4,566

2,558

(+1,116)+2,009 Decrease in operating and other receivables(+895)

CF from investing activities-2,496-2,072-424 Acquisition of intangible assets

CF from financing activities-2,409-2,251-158 Increase in purchase of treasury shares

FCF

2,070

486

+1,585-

Cash and cash equivalents

5,627

5,970

-344

-

(-1,091)(-475)

Broadleaf Co., Ltd. All rights reserved.

Chapter 1 Overview of FY12/2018 Business Results

11

Dividends
Dividend per share increased ¥1 in the full year.
¥10.625(53.8%)

Year-end

Interim¥6.25¥4.375FY2016¥12.00(39.5%)¥11.00(50.4%)

Year-end¥5.50

Year-end

Interim¥5.50

Interim

FY2017¥6.50(Forecast)¥5.50(Fixed)FY2018(Forecast)* Amount after adjustment for the stock split (1:2) on the effective dates of December 17, 2016 and April 1, 2018
Reference: Initial dividend forecast (published on February 14, 2018) Annual dividend: ¥11.00 (interim ¥5.50, year-end ¥5.50)

Broadleaf Co., Ltd. All rights reserved.

12

Chapter 2

Results Forecasts for FY12/2019

Broadleaf Co., Ltd. All rights reserved.

Chapter 2 Results Forecasts for FY12/201913

Overview of Results Forecasts

Consolidated results

Basis for growth

Focused products

Investment in growth

Both revenue and operating profit are expected to achieve a record high.
Revenue
Operating profit¥22.00 billion (up 3.4% YoY)
¥4.50 billion (up 9.4% YoY)

Activate the development of services on the Broadleaf Cloud Platform.
 Expand domains where next-generation cloud systems are provided.
 Enhance new services in cooperation with third parties.

Strengthen oversea sales of “OTRS”
 Cooperation with global partners

Activate investments in companies with sophisticated technologies.
 AI (data prediction), blockchain, VR/AR and others

Broadleaf Co., Ltd. All rights reserved.

Chapter 2 Results Forecasts for FY12/2019

14

Results Forecasts (Consolidated, IFRS)Both revenue and operating profit are expected to achieve a record high, and annual dividend per share is
forecast to be ¥13.00.
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%

Profit

2,800

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-

Dividend per share¥13.00¥12.00+¥1.00

-

¥6.50

¥5.50

+¥1.00-(¥ million)

YoY
ChangeYoY(Ratio)FY2019FY20181H
Forecasts

1H

YoY
ChangeYoY(Ratio)Broadleaf Co., Ltd. All rights reserved.

Chapter 2 Results Forecasts for FY12/2019

15

Change of Sales Categories
To more clarify growth starting from platforms, sales categories have been changed.

New sales categories (in and after FY2019)

Platforms• Basic (Basic fees for “.NS2” and “.NS3Ai,” server
usage fee, database usage fee and cloud usage fee)
• Parts transaction• Support• OTRS (cloud)• Data analysis, etc.

Applications• Application by industry• OTRS (stand-alone)• PC and other devices

Broadleaf Co., Ltd. All rights reserved.

Chapter 2 Results Forecasts for FY12/2019

16

Sales Forecasts by Category (Consolidated, IFRS)
Accelerate the shift from applications to platforms.
FY2019FY2018Full-year
Forecasts

Full-year

Platforms

9,540

7,079

+2,461+34.8%

4,580

3,494

+1,086+31.1%

Basic*

6,910

4,711

+2,199+46.7%

3,350

2,334

+1,016+43.5%

Support

1,320

1,314

+6

+0.5%

650

649

+1

+0.1%

Parts transaction

1,010

935

+75

+8.0%

480

453

+27

+6.0%

Data analysis, etc.

300

118

+182

+153.2%

100

58

+42

+73.8%

Applications

12,46014,206-1,746-12.3%

6,020

6,596

-576

-8.7%

By industry

11,86013,816-1,956-14.2%

5,770

6,415

-645

-10.1%

600

390

+210

+53.8%

250

181

+69

+38.1%

22,00021,285

+715

+3.4%

10,60010,090

+510

+5.1%

(¥ million)

OTRS

Total

YoY
ChangeYoY(Ratio)FY2019FY20181H
Forecasts

1H

YoY
ChangeYoY(Ratio)* For FY2018, basic for .NS2 and .NS3 is not taken into account.

Broadleaf Co., Ltd. All rights reserved.

Chapter 2 Results Forecasts for FY12/2019

17[Reference] Forecasts by Previous Sales Category (Consolidated, IFRS)FY2019FY2018Full-year(¥ million)
Full-year
Forecasts
Business Application Software
14,36014,206

YoY
Change+154

FY20191H
YoY
Forecasts(Ratio)
+1.1%
6,910

FY20186,596

YoY
Change+314

YoY(Ratio)+4.8%

1H

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

-8.5%

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%

480

453

+27

+6.0%

PSF

650

634

+16

+2.5%

310

304

+6

+2.1%

Order Placement andAcceptance

360

301

+59

+19.6%

170

149

+21

+13.9%

Others

300

118

+182

+153.2%

100

58

+42

+73.8%Net sales

22,00021,285

+715

+3.4%

10,60010,090

+510

+5.1%

Network Service

Broadleaf Co., Ltd. All rights reserved.

Chapter 2 Results Forecasts for FY12/2019

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

18

In addition to the effects of higher sales of the Company on a non-consolidated basis, Tajima also
contributed to the profit increase.
(¥ 100 million)

Operating
Profit41.1

A rise in
sales
+3.2

A rise incost of sales-0.4
A rise inamortization ofsoftware 2.1

A fall inother SG&A
expenses+0.2
A rise inadvertisingexpenses-0.9

Tajimaoperatingprofit+1.4

Consolidated
adjustment,
etc.
+0.9

Operating
Profit45.0

A rise inpersonnel
expenses-0.5

FY2018Broadleaf Non-consolidated

FY2019(forecast)
Broadleaf Co., Ltd. All rights reserved.

19

Chapter 3

Medium-Term Management Plan (2019-2021)

Broadleaf Co., Ltd. All rights reserved.

Chapter 3 Medium-Term Management Plan (2019-2021)

20

Basic Policy
Basic
PolicyAccelerate evolution to becoming a platformer from a package software vender.

Targets

FY2021

Revenue: ￥27.00 billion
Sales ratio of platforms: More than 60%

 Full-fledged development of the cloudKey
strategies

 Full-fledged global development of “OTRS”
 Active promotion of M&A/investment/alliance Expansion of the Broadleaf economic zone
Broadleaf Co., Ltd. All rights reserved.

Chapter 3 Medium-Term Management Plan (2019-2021)

21

Growth Visualization
The impact of changing sales recognition from lump-sum to annual/monthly
will be complemented with existing platforms and “OTRS.”

Platforms(new)Expand new businesses utilizing BCP* × AI × Data.

Platforms(existing)

FY2018FY2021

Applications(lump-sumrecognition)* Broadleaf Cloud Platform

Broadleaf Co., Ltd. All rights reserved.

Chapter 3 Medium-Term Management Plan (2019-2021)

22

Major Services to be Released
The impact of changing sales recognition from sump-sum to annual/monthly will emerge
after the release of the cloud-version in 2020.
Repair.c(for bodywork shops)
Professional version
Second half of 2019–First half of 20202018.10

Glass/
electric wiring.c

Maintenance.c(for maintenance shops)
Basic version forcertified shops

Start-up version

Standard BLP.C

ExpandedversionPartsman.c(for auto parts dealers)
Basic version forauto parts dealersSignificantly increase the number ofconnections of orders received andorders placed by simultaneously
releasing the version for certified
shops and the version for autoparts dealers.

Basic version for
designated shops

BLP.c and others(general electronics
market)Expanded version

Electronics market
CarSales.c(EDI infrastructure)

EDI infrastructure
Partsman.c+Recycle

Broadleaf Co., Ltd. All rights reserved.

Chapter 3 Medium-Term Management Plan (2019-2021)

23

Global Development of OTRSAim for steady growth by expanding channels, developing and launching the next-generation version.
Strengthening of overseas sales channels
Basic agreement with Kaizen Global Enterprises onbuilding a strategic partnership(January 2019)×(Head office: United Arab Emirates)

Development of new OTRS (cloud)Preparation for the motion bank vision
Develop data services such as robot teaching by analyzing the
motion of people, operation and biological information.

Development and strengthening of channels in China, North America, ASEAN, the EU andeach area of Africa

Broadleaf Co., Ltd. All rights reserved.

Chapter 3 Medium-Term Management Plan (2019-2021)

24

Active Promotion of M&A/Investment/Alliance
Acquire elements to enhance the value of the Company’s platforms,
such as AI, blockchain and companies’ holding data.
Technology companies(1) AI companies(2) Blockchain(3) Others (VR/AR, etc.)

Broadleaf
Cloud Platform

Companies holding data(4) Mobility(5) Leisure/tourism(6) IoH
Broadleaf Co., Ltd. All rights reserved.

Chapter 3 Medium-Term Management Plan (2019-2021)

25

Expansion of Economic Zone for Broadleaf Cloud Platform
Expand business domains centered on services that have high affinity with existing domains.
New services utilizing data collected from the Company’s services.
Seeking new services and the development of the IoH business in cooperation with mobility
and MaaS companies and data from other industries (travel, life).

Service as the第2弾サービス
second step
福利厚生サービス
Welfare service

Broadleaf Cloud Platform (BCP)
E-commerce
BtoBtoC
The Company’s services

Other companies’
services Provide not only the Company’s services, butalso those in cooperation with other companies
and on an OEM basis.

BasicsBasic functions

Specialized functions

Basic data

Applied data

Serviceas the
第1弾サービス
first step
maintenance.C
Maintenance.c

Welfare(Serviceindustry)
Businessapplication
BtoB

Ordersreceived
and placed
BtoBtoB Make third parties and partners the customers forplatforms (provide programs for third parties).

IT infrastructure(Wholesale/commerce)
Businessapplication
BtoB

Travelbusinessapplication

Servicesfor third
parties
BtoB

 Enhance functions necessary for AI, blockchain/smart contracts and businesses suchas electronic settlement. Expand domains (to BtoBtoC) by acquiring data of otherservicers and enhancing cooperation with them.
 Create new services from the integration of data acquired in each domain andprediction and forecast.

Broadleaf Co., Ltd. All rights reserved.

Chapter 3 Medium-Term Management Plan (2019-2021)

Welfare Agency Service, BroadLeaf Club VIP Service

26

Broadleaf Cloud Platform Service as the Second Step
Commencement of Welfare Agency Service, BroadLeaf Club VIP Service— Support Work-style Reform in the Automotive Aftermarket —(Excerpts from press release)
Features• Special plans only offered by BroadLeaf Club VIP Service.
Offer a variety of courtesy services at a lower price than general welfare services.
Members and their families living together (spouse and within the second degree of kinship)
can use special plans for accommodation facilities, sports clubs, facilities for entertainment,
leisure and life support (for self development, childcare and nursing care) at more than
200,000 facilities in Japan.
Date of start for sales acceptance: Tuesday, January 15, 2019
Date of start for offering service:Friday, February 1, 2019
Price:
Admission fee: ¥30,000 per company (first year only)
Monthly fee: ¥700 per person (excluding tax)

Press release on January 9, 2019

Broadleaf Co., Ltd. All rights reserved.

27

Appendix

Corporate Profile, Sales Fields, Press Releases, etc.

Broadleaf Co., Ltd. All rights reserved.

Appendix

28

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 ofservices on the platform(Business applications, platforms for cooperation with different industries,
recycled parts marketplace, development of car-related contents, etc.)

Head Office Address

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

Sales Offices

29 offices in Japan

Development Centers

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

Appendix

29

Explanation of Sales Fields
Platforms• Provision of database of car-related vehicle information and parts-related information that is updated daily◼ Basic• Consideration for server maintenance required for the use of network-type systems• Provision of basic functions of BCP (“.NS2”/“.NS3Ai”/“.c “ (“Maintenance.c,” etc.))◼ Support• Business application maintenance service to the Company’s Business Application Software customers and provision of hardware
maintenance services• Purchase and sale of exclusive forms and OA supply goods to be used for the business applications• Operation of recycled parts distribution network “Parts Station NET” that shares inventory information on recycled parts◼ Parts transaction• Collection of fees as transaction amount settlement agency for parts dealing• Provision of computerized ordering system “BL Parts Order System” for automotive parts• Provision of tablet-type operation terminals “CarpodTab” to maintenance business operators, etc.

◼ Data analysis, etc.

• Analysis of accumulated anonymization data and provision thereof to third parties

Applications◼ By industry• Development and sale of industry-specific business applications(Industries: car maintenance, bodywork, car dealers, auto parts dealers, parts manufacturers, mobile dealers, travel, etc.）• Purchase and sale of PC bodies, printers, etc.

◼ OTRS• Development and sale of operation analysis/optimization software

Broadleaf Co., Ltd. All rights reserved.

Appendix

Press Release from September 3, 201830

AI-based Network-type Business Support System
New Product “SF.NS3Ai” Launched in Network-type Business Support System “.NS” Series— Operational Efficiency when Preparing Maintenance Slips Improves Dramatically with AI Function —(Excerpts from the press release)“SF.NS3Ai” is equipped with AI function and new BL codes, and the use of these functions will improve service quality to car owners and theprovision of new value, in addition to an improvement in the efficiency of daily business.
Features◼ AI function

Learns estimates prepared at a business or in the same group and automatically indicates works and parts withboth high frequency of use and relevancy.
Prevents omissions and leakages arising from differences in experience of persons in charge.

◼ New BL codes

Increase the number of digits of parts codes from the existing four to 11 to expand data that enables theidentification of types of relevant parts. This will improve the convenience of electronic trading, because
automatic transactions will increase in terms of inquiries to regional parts dealers about delivery time and price.

◼ Automatic parts inquiries

Implement a one-click function to make inquiries about and place orders for parts while preparing an estimate.
This has achieved the quick proposal of estimates for car owners and parts arrangements for them.

Start date of provision

Friday, September 7, 2018

Price

Basic price ¥900,000 (monthly contract or lease contract for 5 years)* Initial installation fee is separately required.
* In addition, a network usage contract is required.
* An additional contract to expand functions is also possible.

Broadleaf Co., Ltd. All rights reserved.

Appendix

Press Release from September 27, 201831

Next-generation Cloud System “Maintenance.c”
First Cloud Service on the Broadleaf Cloud Platform
Provision Started for Super Frontman Series “Maintenance.c”(Excerpts from the press release)

New cloud service Super Frontman series “Maintenance.c,” which operates on the Broadleaf Cloud Platform, will carefully select essential functions for the
auto maintenance business and provide them as a service for start-up companies.

Overview
Super Frontman series “Maintenance.c” is a cloud service for auto maintenance companies that will enable them to manage customers and vehicles, issue
slips and prepare application documents on an Internet browser*1.
It is possible to mount essential functions for the maintenance business and add functions desired by users *2.
In addition, sophisticated information processing, data prediction and recommendations based on multiple AI engines will further improve operational
efficiency.
*1 A system that can be easily introduced and used without specific knowledge and a dedicated environment as long as it is connected to the Internet. *2 Functions will be expanded in the series.

(Features) Intuitive and easy-to-understand layout and operational feeling AI automatically learns the contents of slips that are prepared in the workplace or the same group.
 Input assistance helps prevent omissions and leakages in the slip preparation work.
 Management screen that will realize fast and courteous customer service
 Application for use on the Internet and online settlement are possible.

Start date of provision

Monday, October 1, 2018

Price
One license: ¥5,000 per month (excluding tax)
(Platform usage fee ¥3,000 + Maintenance and application usage fee ¥2,000)* In addition, slip issuance fee (approx. ¥500) will be charged.
* Additional fees for options are required separately.

What is the Broadleaf Cloud Platform?
The Broadleaf Cloud Platform is a cloud-based digital business platform to achieve IT
innovation. It is characterized by the collection and high-speed search and analysis of
massive amounts of data, the implementation of services in a short span of time through the
combination of business API services and high scalability according to the scale of use. As
the first service operating on this platform, we will begin to provide a next-generation systemdeveloped by Broadleaf. In the future, we will provide new businesses and iconic services
utilizing auto-related big data and infrastructure in cooperation with a variety of partners
across industries.
* We are preparing a partner program for companies that will be able to provide systems andservices on the platform.

Broadleaf Co., Ltd. All rights reserved.

Appendix

Press Release from January 31, 2019Conclusion of a Basic Agreement with Kaizen Global Enterprises

32

Concluded a Basic Agreement with Kaizen Global Enterprises (“KGE”) on Building a Strategic Partnership(Excerpts from the press release)
KGE is a holding company of KAIZEN Institute (“KI”), which holds the registered trademark of “KAIZEN” in many countries and provides consulting
activities to all industries in more than 60 countries around the world. Based on the concept of KAIZEN, always creating an organizational culture andframework that enable the members to act and operate better with the entire organization working as one, KI provides comprehensive services ranging
from management consulting based on the self-developed Kaizen Business System (KBS) to kaizen at a field level.
For the purpose of accelerating the global development of the IoH (Internet of Human) business with OTRS as the starting point by applying KI’s knowled
ge to Broadleaf’s IT solutions, both companies will proceed with consultations to build a strategic partnership.

Details of the basic agreement

Operation analysis/optimization software “OTRS”

Broadleaf and KGE will proceed with consultations on the following items by
the end of March 2019.
• Setting a common mission and vision for the partnership• Sharing of knowledge between the companies• Confirmation of compatibility between OTRS and KBS• Consideration of the building of a platform to promote the creation of anorganizational culture• Examination of a contract model

Software able to reduce working hours and costs, and save labor at
production and manufacturing sites with functions such as motion
analysis using images and time analysis. OTRS, which was createdbased on the IE (industrial engineering) method, can efficiently andquickly achieve kaizen activities, and its application is spreading to
not only the manufacturing industry but also to a variety of worksites as a tool for educational training and technical tradition.

Representative

Managing Director Risa Cox

Address

Swiss Tower, Floor 10, Suite 1003-02, Cluster Y, JLT, Dubai, UAE

Business

Leads the KAIZEN Institute Group to comprehensively provide practical consulting and education centered on KAIZEN andservices to improve the growth potential and modification functions of companies and organizations, in addition to the QCD(Quality, Cost, Delivery) areas.

URL

https://www.kaizen.com

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