Business Results Briefing for FY12/2020
January 1, 2020 ー -December 31, 2020

D AT E 2 0 2 1 . 2 . 1 2

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Contents

1

Summary

P02

2

Mid-term Management Policy (2021-23)

P11

3

Results forecasts

P24

4

Topics

P30

Appendix

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1

Contents

1

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Summary2

Chapter 1

Summary

Operating profit exceeded the forecast, but revenue and profit declined year on year

Business results

Operatingactivities

Revenue¥21.162 billion (-0.6% compared to forecast, -6.3% YoY)

Operating income¥4.135 billion (+6.0% compared to forecast, -8.6% YoY)

We promoted the penetration of DX of customers by conducting sales activities using both online and face-to-face methods.
While the number of customers has increased in 2020, negotiation period prolonged from Q2 to Q3

Automotive: There is demand for automobile inspection and statutory inspections, and the business environment is generally stable.
Operators are actively responding to the sophistication of maintenances and adapting to digital administration

Customer status

Non-automotive: Travel agencies and bus operators continue to face challenging business environment

OTRS: Priorities for investing in work analysis tools continue to decline in manufacturing and service industries

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3

Chapter 1

Summary of Consolidated Business Results

Revenue and profit decreased due to prolonged business negotiations(Millions of yen)

Revenue

FY2020FY2019YoY change

YoY ratio

21,162

22,586-1,424-6.3%

Platform

10,275

10,192+83+0.8%

Application

10,887

12,394-1,507-12.2%

Operating profit

4,135

4,525

-390

-8.6%

Income before tax

3,820

4,486

-665

-14.8%

Profit attributable to owners of parent

2,465

3,093

-628

-20.3%

28.16 yen

35.40 yen--

Basic earnings per share

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4

Chapter 1

Breakdown of Platform Sales

Sales proportional to the number of customers (stock) increased, while sales linked to annual software sales (flow) decreased(Millions of yen)

FY2020YoY change

YoY ratio

7,616

7,654

-38

-0.5%

5,365

5,542

-177

-3.2%

Lump sum

2,365

2,735

-370

-13.5%

Monthly

3,000

2,807

+193

+6.9%

Monthly

2,251

2,113

+139

+6.6%

905

920

-15

-1.6%

Basic
PaaS/SaaS

IaaS

FY2019EDI and settlement

PSF *Monthly

554

603

-49

-8.1%

BLP/CPT *Monthly

351

317

+34

+10.8%

1,596

1,478

+119

+8.0%

Maintenance

Monthlyamount

878

708

+170

+24.0%

Supplies

Lump sum

719

770

-51

-6.6%

ー

157

140

+17

+11.8%

10,275

10,192+83+0.8%

SupportOthersTotal

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*[PSF] Settlement agent fee for automobile recycled parts transaction market “Parts Station NET” [BLP] Use fee for “BL Parts Order System”[CPT] Use fee for ”CarpodTab”

5Chapter 1

Breakdown of Application Sales

In Automotive sector, annual sales (flow) decreased due to prolonged business negotiations, but the number of customers (stock) increased.
Non-automotive sector and OTRS were affected by frozen deals(Millions of yen)

FY2020FY2019YoY change

YoY ratio

8,806

10,448-1,642-15.7%

Automotive

7,545

8,874

-1,329-15.0%

Non-automotive

1,261

1,574

-312

-19.8%

OTRS

204

338

-134

-39.7%

Others

1,877

1,608

+269

+16.7%

10,887

12,394-1,507-12.2%

By industry

Total

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6

Chapter 1

Trends in Customers and Monthly Sales

Revenue declined year on year, but the number of customers increased in 2020, and monthly sales increased accordingly

Changes in the number of customers(the number of companies)

Changes in the monthly sales(Millions of yen)

36,35836,44737,400

1,831

1,890

1,822

6,366

6,688

905
920

935

FY2018 Year-end

34,557FY2019 Year-end
Automotive

Non-automotive

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

1,035

848

719

34,527

7,191

35,578FY2020 Year-end

4,711

4,920

5,252

FY2018FY2019FY2020

Basic* [Fixed]
EDI/Settlement [Fixed/Volume]

Maintenance and Others [Fixed]*The sum of PaaS/SaaS（monthly）and IaaS of Platform Basic

7

Chapter 1

Breakdown of Changes in Operating Profit

The drop in cost of sales was limited due to big deals of equipment sales and increased amortization burden of cloud services.
We implemented cost-control measures such as reduction of operating-related expenses(Millions of yen)
+ Year-on-year increase factors- Year-on-year decrease factors

Operatingprofit4,525
Decrease incost of sales+306
Decrease insales-1,424FY2019Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

Decrease inadvertisingexpenses+123

Decrease inpersonnel
expenses+207

Decrease inbusiness trip/
travel expenses+214

Others+185

Operatingprofit4,135

Increase in amortizationof cloud services -88

FY20208Chapter 1

Overview of Balance Sheet

Intangible assets increased due to investment in development of cloud services(Millions of yen)

Current assets

FY2020FY2019Year-end

Year-end

7,752

7,987

YoY Change

Breakdown of Major Changes-235

Cash and cash equivalents +199
Operating and other receivables -502
Intangible assets +1,528
Other financial assets -532

24,522

23,702+820

32,274

31,689+585

Current liabilities

6,432

7,100

-668

Contract liabilities -439

Non-current liabilities

1,239

1,369

-130

Long-term interest-bearing debts -146

Total liabilities

7,671

8,469

-797

Total shareholders' equity

24,602

23,220+1,38332,274

31,689+585

Non-current assets
Total assets

Total liabilities and shareholders' equity

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Recognition of profit +2,465
Dividend payout -1,146

9

Chapter 1

Overview of Cash Flow

Free cash flow increased due to control of investments, etc.

(Millions of yen)

Cash flow from operating activities

FY20205,056

FY20193,762

YoY Change

Breakdown of Major Changes+1,294

Decrease in operating and other receivables +340
Decrease in operating and other payables -226
Decrease in income taxes paid +510

Cash flow from investing activities-2,774-3,990+1,216

Decrease in purchase of intangible assets +532
Decrease in purchase of investments +1,044

Cash flow from financing activities-2,084-2,366+281

Decrease in repayments of long-term debts +316

Free Cash Flow

2,283

-228

+2,510Cash and cash equivalents

3,232

3,034

+199

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10

Contents

2

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

Mid-term Management Policy

11Chapter 2Management Policy

Aiming to evolve into a high-growth company in addition to maintaining stability as a company
Basic Policy

Measures to improve profitability in the core business software business,
Continue to implement measures to create businesses in new areas in parallel
ApproachDX

EV
Autonomous
driving

MaaS

Growthopportunities
Online/ remote/digital administration
Increase in IT investment
by companies
Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

New statutory safety inspection
system and maintenance techniques

Entries of a variety of players

Sophistication and digitalization of
auto maintenance

Increased demand forservice infrastructure

12Chapter 2
DX
Theme for2021-23

Themes for Initiatives in 2021-23"Two DX"①Promote customers’ Digital Transformation (DX)
②Add value to our service infrastructure as the Data Exchanger (DX).

Data exchanger
DX

Collect, analyze, forecast, and integrate data on our platform tooffer values to customers and the community

MaaS

Contribute to the establishment of abusiness environment which leads to thecreation of new values for customers

EV
Autonomous
driving

Support MaaS operators’
rapid creation of services

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

Help customers seize business opportunities
by responding to technological evolution ofcars and to new systems

13

Chapter 2

Priority Measures for 2021-23

Measure1

Measure2

Measure3

Measure4

Introduction of new cloudbased model to the market

Strengthening of DX solutions

EDI extension andopening of the ordering platform

Deployment of the MaaS platform

Effects on
the Company

Operational efficiency in thesoftware business will improve,and the margin will rise

It will bring synergistic effects tothe software business, and sales
per customer will increase

The number of the platform users
will rise, which will increase themonthly flat-rate/measured-rate sales

Through commercialization in newarea, it will create new revenue
sources (including overseas)

Effects oncustomers

Customers will be able tocapitalize demand for maintenanceand inspections adaptive to the
new automobile inspection systemand technological evolution of cars

By introducing DX, customers will
be able to increase the number ofcontact with consumers and expand
business opportunities

Customers will be able to trade auto
MaaS operators will be able torepair parts and a variety ofquickly start their business by using
products in an integrated manner,services of our business partners
which will lead to improved(3rd parties)
management efficiency

Priority
measures

Effects onsociety

By responding to EV/PHV,
we will support the spreadof eco-friendly vehicles

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

By encouraging penetration of
the new work style,we will
support improvements in laborproductivity

By establishing a framework forsmooth transactions of recycled
products, we will support theefficient use of natural resources

We will improve the convenienceof daily life, eliminate the mobility
gap, and support the reduction ofenvironmental impact

14

Chapter 2

Relationship of Priority Measures

Improve convenience and efficiency of development/operation by constructing all service on the same platform
Mobility Service Users/Car Owners

Consumer
User company(Servicer)

Maintenance

Retail/Wholesale

Sharing

Delivery/Transportation

Transportation

Measure 1

Measure 3

Measure 2

Measure 4

Introduction of new cloudbased model to the market

EDI extension andopening of the ordering platform

Strengthening of DX Solutions

Deployment of the MaaS platform
Zenmov Inc.

Google CloudApplication
layer
Business software(.c Series)

Ordering platform

Broadleaf branded service
Infrastructure
layer

IT infrastructure* Google Workspace is currently in preparation

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

Company X

Company Y

...

...

Groupware(Google Workspace *)3rd party service

API
Data

Operation control
platform

Common functions

Broadleaf Cloud Platform

EDI(Enhanced gateway)

15

Chapter 2

Image of Changes in Sales through the Implementation of Priority Measures

In 2021-23, profits will decline temporarily due to introduction of new cloud-based model to the market (Measure 1)
At the same time, we will strengthen DX solutions (Measure 2) and continue efforts to achieve high growth (Measures 3 and 4)～2020 Structural Reform Period(Development of Growth Base)

2021- Transition Period(Shift to stock-type sales)

High-growth period(Full stock-type sales/3-layer structure)
Commercializationof new services(MaaS etc.)

Platform infrastructuredevelopment

Sales of business software

Measure 4
Extension of 3rd Party services
Measure 3
EDI extension and opening of theordering platform
Measure 2
Strengthening of DX Solutions
MeasurePolicy1 1
Launchofofnew
newcloud-based
cloud-basedmodel
model
LaunchCopyright©2021 Broadleaf Co.,Ltd. All rights reserved.

Increase in number of users
and utilization rate of
the ordering platform

Sales of business software after
transition to the new cloudbased model (including SDK,
OEM, and API etc.)
16Chapter 2

Measure 1: Introduction of New Cloud-based Model to the Market ① (Sales Model)

In the new model of software, not only will the functions and UI be improved, but the sales model itself will change significantly.
Image of changes in software sales per customer
New cloud-based model ".c Series"

Current model ".NS Series"
Software use fee for X years (lump-sum)+ DB and other use fee (monthly flat-rate)
1. Change in sales recognition

2. Fee system changes*

3. Combine measured-ratefrom lump-sum to monthly flat-rate

Introduction of role license

Linked to the number of forms
output, etc.

MonthlyMonthly

Lump
sum

Lump
sum

Monthly

Contract year

Basic use fee (monthly flat-rate) + Role use fee (monthly flat-rate) × Number of IDs+ Volume-based Charge (monthly measured-rate)

Measured

・・

Renewal year
(after X years)

Monthly ・・MonthlyMonthly

Contract year

(Automatic renewal fromthe second year onward)*Fee system

Software license + DB, etc.
DB, etc.
SoftwareUse of one license by turns

Basic license + Role license × IDs
Basic (Corporate)

Simultaneous use of rolls linked to IDs

Front office

Role (Front office)ID

Front office

Maintenance & Front office

Role (Maintenance)ID

Maintenance & Front office

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17

Chapter 2

Measure 1: Introduction of New Cloud-based Model to the Market ② (Schedule)

In addition to providing modules (APIs) to certain major users,
Expand the software customer segment by making it a mechanism that can be contracted and introduced via the Web
Segment expansion measures
Current modelTransition schedule

New cloud-based model
Products

FY2021
Sales Channels

1H

2H

Certain major
users

Provide package
Customization islimitedProvide module (API)Ad-on development by 3rd party(provide SDK)

・In-house・3rd party

SS/Non-users*

Not applicablefor non-users

Provide limited functions editions thatmatch with the scale of operations

・Web・3rd party
・In-house

Partial deployment(Limited targets)

Medium to large

Replace competitors’
products throughoperating activities

Provide standard editions (with fullfunctions) for each industry
Provide OEMs to competitors

・In-house
・Competitors

Development

FY2022
1H

2H

FY2023
1H

2H

Deployment

Deployment (All Targets)

Partial deployment(Limited targets)

Deployment(All targets)*”SS” are gas stations, and “non-users” are companies that do not install any business software
NOTE)Schedules may change according to external environment, etc.
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18

Chapter 2

Measure 1: Introduction of New Cloud-based Model to the Market ③ (Changes in Sales Model)

In the new cloud-based model, ".c Series," sales recognition not only change to monthly system, but also change to a sales model thatcombines introduction of role licenses, a new measured-rate system, and provision of modules.
Current model ".NS Series"

New cloud-based model ".c Series"

4. Provision of modules (API)API monthly fee

3. Combination of measured-rate system(Linked to the number of forms output, etc.)

Monthlymeasured-rate

2. Changes in fee system(Introduction of role license)
DB and other use fee
Monthly flat-rate

1. Changes in sales recognition(from lump-sum to a monthly flat-rate)

Monthly flat-rate
for introduction ofrole license

Software use fee
Monthly flat-rate

Software use fee
Lump-sum

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19

Chapter 2

Measure 2: Strengthening DX Solutions

Add DX-related functions to business software and provide DX-tools at the same time
Response to administration
Help customers respond to digital administrationby promoting the use of online functions

Customer Relations

Work Style
Support improvement of efficiency
by linking individual IDs with thecloud-based business software

Support digital attraction ofcustomers by collaborating withbusiness software

Cloud version of business software".c Series"

Collaborate
with SNS

Online application(OSS*, etc.)
Administration

ID

ID

ID

Send SMS

Car owners

Link with groupware***OSS (one-stop service)
A service that can file applications online for payment of administrative procedures for car ownership, automobile tax, inspection registration fees, etc.
** Google Workspace is currently in preparation
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20

Chapter 2

Measure 3: EDI Extension and Opening of the Ordering Platform

In the new cloud model, ".c Series," the ordering platform is installed as a standard function
In addition, we will implement extension measures such as opening of trading participants.

New cloud-based model".c Series"

Each industry

Standard function
equipped
Recycling shops■Non-user of the “.c Series”■Other E-commerce site Platforms

Ordering platform
Auto parts
dealers

Auto maintenanceshops

Extension
Opening
Commonfunctions
DataIT
infrastructure

EDI (Enhanced gateway)

X

Y
Data conversion

Broadleaf Cloud Platform
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21

Chapter 2

Measure 4: Deployment of the MaaS platform

In January 2021, we began offering a service menu for public transportation (MaaS operators) in the Philippines.
We will gradually add general function modules to the service menu and deploy them to a wide range of MaaS operators

Suppliers

Available Service

New Transportation
Infrastructure

Delivery/Transportation

Sharing

ExpandZenmov Inc.

MaintenanceOperation management application
for new public transportation

Manufacturer

Maintenance
Data and know-how

Finance/
Settlement

EnergyIT Infrastructure/Settlement/AI/Blockchain etc.

⇒ Used by public transportion operators(January 2021)

System-wide operational base, DB foundation, Cashless payment
infrastructure, Periodic vehicle inspection/maintenance service

Broadleaf Cloud Platform
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22

Chapter 2

Concept of the “Data Exchanger”

Data converted on the platform becomes a source of value creation by data users

Business software /DX solutions(including SDK and OEM)
(Converted data)
Recommendation

Business software users/
SIer/ data users, etc.

MaaS platform(Converted data)
Amount of sales(Input data)
Passenger record(Input data)
Maintenance record

Ordering platform

Recycle shops/ auto parts
dealers /auto maintenanceshops/ other E-commerce site
operators, etc.

Data conversion is the sources ofusers’ value creation(We will charge for converting data)

Data
conversion(Converted data)
Demand forecast(Converted data)
Passengers’ settlement volume(Input data)
Ordering record(Input data)
Settlement record

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

MaaS operators, etc.

Broadleaf Cloud Platform

Financial payment
method providers,
etc.

23

Contents

3

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Results forecasts

24

Chapter 3

Impact on Business Results in 2021

Priority Measures for 2021-23

Impact on business results in 2021
・Modular sales for certain major customers will be recognized as monthly sales, which will bea factor for the decline in sales of aproximately ¥500 million (LTV does not decrease)

Measure1

Introduction of new cloud-basedmodel to the market

Measure2

Strengthening of DX solutions

・Steady sales are expected, but contribution to sales will be limited due to monthly usage
systemMeasure3

EDI extension andopening of the Ordering Platform・Contribution to profit will be limited because the introduction of the new ordering platform
will be from 4Q onward.

Measure4

・Sales of new cloud-based software for gas stations will have positive effect on sales, but
contribution will be limited due to small scale and recognition of monthly sales

・Business deployment of the MaaS platform will begin, but contribution to sales will be limited
Deployment of the MaaS platform

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・Others are still in R&D phase25

Chapter 3

Forecast of Consolidated Business Results

In addition to decrease in revenue of application sales, anticipatory cost burden is expected.

(Millions of yen)

FY2021

FY2020

FY2021
YoY change YoY ratio

YoY change YoY ratio

Full-year
forecast

Full-year

Revenue

20,10021,162-1,062

-5.0%

9,500

10,232

-732

-7.2%

Operating profit

2,400

4,135

-1,735-42.0%

700

1,628

-928

-57.0%

Income before tax

2,400

3,820

-1,420-37.2%

700

1,614

-914

-56.6%

Profit attributable to owners of parent

1,550

2,465

-915

-37.1%

430

1,066

-636

-59.6%

17.64 yen

28.16 yen--

4.90 yen

12.18 yen--

Basic earnings per share

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1H
Forecast

FY20201H26

Chapter 3

Forecast by Revenue Categories

The main factor for decrease in revenue of Application By industry is the change in accounting methods due to partial introductionof new cloud-based modules to certain major customers(Millions of yen)

FY2021

FY2020

FY2021
YoY change

YoY ratio

10,275

+125

+1.2%

4,900

7,600

7,616

-16

-0.2%

920

905

+15

Support

1,700

1,596

Others180

Application

FY2020YoY change

YoY ratio

4,872

+28

+0.6%

3,600

3,600

-0

-0.0%

+1.7%

420

439

-19

-4.4%

+104

6.5%

800

761

+39

+5.1%

157

+23

+14.8%

80

72+8+11.7%

9,700

10,887-1,187-10.9%

4,600

5,360

-760

-14.2%

8,050

8,806

-756

-8.6%

3,800

4,165

-365

-8.8%

OTRS

250

204

+46

+22.7%

100

132

-32

-24.0%

Others

1,400

1,877

-477

-25.4%

700

1,064

-364

-34.2%

20,10021,162-1,062

-5.0%

9,500

10,232

-732

-7.2%

Platform
Basic
EDI and settlement

By industry

Total

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

Full-year
forecast

Full-year

10,400

1H forecast

1H

27

Chapter 3

Breakdown of Changes in Operating Profit (Full Year)In addition to the burden of amortization of cloud services, operating-related expenses is expected to increaseon the assumption that operating activities will return to a similar level as the normal period.
(Millions of yen)
+ Year-on-year increase factors- Year-on-year decrease factors

Operatingprofit4,135
Decrease incost of sales+188
Decreasein sales-1,062

Renewal of the
IT infrastructure-289
Increase in amortizationof cloud services -285

FY2020

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Increase inadvertisingexpenses-153

Operatingprofit2,400
Increase inpersonnel
expenses-151

Increase inbusiness trip/
travel Expenses-75

Others-193

FY2021(Forecast)

28

Chapter 3

Dividend Policy and Dividend Forecast

Year-end dividend for the year ended December 2020 is expected to be ¥6.60 per share as forecasted at the beginning of the fiscal year.
For the fiscal year ending December 2021, the company forecasts an annual dividend of ¥7.00 per share (interim dividend of ¥3.50 and
year-end dividend of ¥3.50) due to the introduction of a new dividend policy.
Dividend Policy

After change)
Our basic policy is to distribute earnings in accordance with businessresults while retaining the surplus required for business development
and maintenance of financial soundness to increase corporate value.
We aim for a consolidated dividend payout ratio of 35% or more.

Dividend per share
Annual(Consolidated Dividend
Payout Ratio)¥13.00(36.7%)¥13.20(46.9%)

Year-end

¥6.50

¥6.60
(Planned)¥3.50

Before change)
Our basic policy is to maintain a stable dividend by securing theinternal reserves required for the future business development andstrengthening of the management structure. Our target payout ratio is
approximately 20%.

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

¥7.00(39.7%)

Interim

¥6.50

¥6.60

(Forecast)¥3.50(Forecast)

FY2019FY2020

FY2021

29

Contents

4

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Topics30

Chapter 4

Topic 1: Initiatives to Support Customers in Response to the New System

An emergency webiner was held on December 25, 2020, after a vehicle equipped with an autonomous driving level 3 received type approval
from MLIT
On Tuesday, November 11, 2020, the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) became the first in the world to give type approval toa vehicle with autonomous driving level 3. In order to provide updated information to operators involved in auto maintenance that are entering an era of majortransformation, we held an emergency webinar entitled "This is how auto maintenance will change due to appearance of the autonomous driving level 3 of
Honda Legend announced on November 11".
In the webinar, we provided information on possible changes in the automobile society that may occur after the launch of vehicles equipped withautonomous driving level 3 and the accompanying trends in administration, as well as administrative trends associated with the automobile specific maintenancesystem which was enforced in April 2020, from the viewpoint of DX.
Target (for camera recognition)
CameraReference) Specific Maintenance System
In April 2020, the auto maintenance system was launched as a new system. The system
expanded the scope from the previous "disassembly and maintenance", in which engines andbrakes were removed, to maintenance or modification without removal (maintenance ofelectronic control equipment) which may influence movements of installed equipment.
In addition,the “autonomous operation equipment" installed in vehicles with autonomous
driving levels of at least 3 was added as the target equipment, and the name of the system waschanged to "specific maintenance."
Source: MLIT ” About Specific Maintenance System”
https://www.mlit.go.jp/jidosha/jidosha_fr9_000016.html

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

Scan tool

Camera’s field of view

Target recognition domain

Vehicle center line

Figure: An Example of inspection subject to maintenance of electronic control equipment
Source: MLIT "Training session for Maintenance Leaders of Electronic Control Devices"
https://www.mlit.go.jp/jidosha/content/001331469.pdf

31

Chapter 4

Topic 2: Initiatives Related to the MaaS Platform

Participated in a new public transportion model business launched in Pasay, Philippines, which started operations on January 15, 2021

<Traffic issues facing the Philippines>
Traffic congestion is a social issue in the Philippines, and its economic loss amounts to 3.5 billion pesos perday (about 7.6 billion yen).
Pasai City, which is implementing this model business, has no means of on-time transportion from train
stations to shopping malls, and needs for on-time transportation services are extremely high.
Figure 1: Images of the E-Trickle and Payment Terminal<Service content of model business>
The following service will be provided as "New Public Transportation" to solve the above issues.
E-Tricycle Operation service

Libertad LRT Station[Provided by MC Metro]

Operation management system necessary for efficient operation[Provided by Zenmov Inc.]

Data infrastructure that can analyze the data on the system[Provided by Broadleaf Co., Ltd]

Cashless payments compatible with mobile QR payments[Provided by Broadleaf IT. Solutions Inc.]

Visiting periodic inspection/maintenance service for vehicles[Provided by BLISAM TRADING CORP.]

Pasay city office
ManilaPasay
W mallFigure 2: The operation route of the model business

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

32

Chapter 4

Topic 2: Initiatives Related to the MaaS Platform

By utilizing the one-stop services offered by the Broadleaf Group, MaaS operators will be able to smoothly develop their businesses<Service Structure>
Realization of a cashless society
Payment

Passenger
Provision of MaaS

E-Tricycle Operation service

Variety of payments(QR/IC cards, etc.)

MaaS operators

Broadleaf I.T. Solutions Inc.

Cashless
Payment service

Periodic inspection/
maintenance service

Operation management
systemAuto insurance
Supplyingrecycled parts

Zenmov Inc.

Standard Insurance Co.,Inc.

BLISAM TRADING CORP.

Data conversion※For individual service
Can also be provided

Broadleaf Cloud Platform※ Broadleaf I.T. Solutions Inc: Wholly owned subsidiary / BLISAM TRADING CORP: Equity-method affiliate / Zenmov Inc: Equity-method affiliate / Standard Insurance Co, Inc.: Partner

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

33

Appendix

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

34

Appendix

Company Profile

Corporate Name

Broadleaf Co., Ltd.

Representative

Kenji Oyama, Representative Director, President and CEO

Listed on

Listed on the First Section of the Tokyo Stock Exchange on March 22, 2013 (3673)

Industry

Information and communication industry

Founded/Established

December 2005/September 2009

Capital StockJPY 7,148 million (consolidated)

Fiscal Year

From January 1st to December 31st

Business Outline

The Company offers a wide range of IT services, including its independently developed business software.
In addition to provision of business software that serves as core business systems, mainly for business operators belonging to
the automotive aftermarket sector, the Company provides diverse, unique one-stop services, including the ordering platform forauto parts and big data analysis.
In addition, looking ahead to the evolution of the mobility society going forward, it has been conducting surveys and research
for the commercialization of advanced technologies.

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)

Main Subsidiaries

Tajima Inc.

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

35

About Revenue categories ① Types of Services

Appendix

We provide customers with multiple services, including business software, as a single package.

Provision of services

Customer company

Compensation for services

Broadleaf

Breakdown

Non-optional

Non-optional

Non-optional

Non-optional

Optional*2

Optional

Optional

Optional

Optional

Business software

Business software(Basic functions)

Database

Server functions

Customer support

Ink toner
Business forms

E-commerce site
for recycled
automotive parts

EDI forautomotive parts

Computers andother equipment

Type ofcompensation

Fee for purchasing
usage rights*1

Fee for purchasing
usage rights*1

Use feeUse feeUse feeFee for purchasing
products

Use feeUse feeFee for purchasing
products

Form ofpayment

Lump-sum

Lump-sumMonthlyMonthlyMonthly

Lump-sumMonthlyMonthly

Lump-sum

Service name

*1 Usage rights valid for a maximum of 6 years*2 Measures for improving the contract ratio were strengthened in the second half of 2019.

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

NOTE: The scope of provided service varies depending on industry of the customer.

36Appendix

About Revenue Categories ② Correspondence Relationship with Revenue Categories

The form of payment differs according to the type of service.
The correspondence relationship between the type of service and revenue categories is as indicated below.
Services

Form of payment

Revenue Categories

アプリケーション
Applications
Fee for rights to use business software (valid for a
maximum of 6 years)

Lump-sum

By industry/OTRS[Periodic]

Fee for computers and other equipment

Lump-sum

Others[Periodic/Pay-as-you-go]

Platforms
Fee for rights to use basic functions(valid for a maximum of 6 years)

Basic
Lump-sum

PaaS/SaaS (Lump-sum)[Periodic]

Fee for use of database

Monthly

PaaS/SaaS (Monthly)[Flat rate]

Fee for use of server functions

Monthly

IaaS (Monthly)[Flat rate]

SupportFee for use of customer support

Monthly

Support Service[Flat rate]

Fee for toner/business forms

Lump-sum

Provision of consumables[Pay-as-you-go]

EDI / Payment settlement
Fee for use of e-commerce site

Monthly

PSF[Measured-rate]

Fee for use of EDI

Monthly

BLP/CPT[Flat rate & Measured-rate]

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

37

Appendix

About Revenue Categories ③ Timing of Contract Renewal

Most customers choose a lease contract.
Sometimes we take over the remaining lease payments as a “trade-in” before the expiration of the software lease period.

Trade-inAmount recorded as revenue

Broadleaf
Lump-sum payment(Payment for the initial contract)

Lump-sum payment (Payment for the new contract - Remaining lease
payments taken over by the Company as a “trade-in”)

Finance lease
Leasing company

Monthly payments(Payments for the initial contract)

Monthly payments (Payments for the new contract - Remaining lease
payments taken over by the Company as a “trade-in”)“Trade-in” (remaining lease payments)
Initial contract

Contract renewed before
6 years have elapsed(Average of 5 years)

Expiration of theinitial contract

Customer
New contract
Copyright©2021 Broadleaf Co.,Ltd. All rights reserved.

Expiration of the
new contract

38

Disclaimer

The statements regarding results forecasts and future forecasts contained in thismaterial are forecasts based on information available at the time of preparation of
the materials and include potential risks and uncertainties.
Accordingly, please note that actual business results may differ from these results

forecasts due to various factors.

Contact Information

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

39