Slide 1: 1Q FY12/2025 Business Results Briefing Material
1Q FY12/2025 Business Results Briefing Material Broadleaf Co., Ltd May 14, 2025 Copyright©2025 Broadleaf Co.,Ltd. All Copyright©2025 rights reserved. Broadleaf Co.,Ltd. All rights reserved. 1
Slide 2: Contents
Contents Summary P3 Business Results for 1Q FY12/2025 P8 Forecasts for the First Half and Full Year of FY12/2025 P15 Medium-Term Management Plan (2022-2028) P22 Copyright©2025 Broadleaf Co.,Ltd. All rights reserved. Copyright©2025 Broadleaf Co.,Ltd. All rights reserved. 2
Slide 3: Summary
Summary Copyright©2025 Broadleaf Co.,Ltd. All rights reserved. 3
Slide 4: Summary
Summary Summary Business results Strategy ⚫ Revenue for the first quarter ⚫ Plan to migrate 100% to the cloud Increased by 18.5% year on year by the end of 2028 driven by the growing number of customers for customers eligible for the released cloud using our subscription-based software software (alr
Slide 5: KPIs and ARR of Cloud Software
Summary 4 KPIs and ARR of Cloud Software Cloud rate ARPL 26.4% 24,527 yen 1Q FY2024 1Q FY2024 17.3% 23,084 yen ARR （YoY+6.3％） 4,463 million yen User retention rate 1Q FY2024 Number of licenses 2,576 million yen （YoY+73%） 99.7% 15,165 1Q FY2024 1Q FY2024 99.6% 9,301 （YoY+5,864） NOTE: ARR is calculate
Slide 6: Changes in the KPIs
Summary Changes in the 4 KPIs Cloud software, the key driver to achieving the Medium-Term Management Plan (2022-2028), is progressing in line with the plan across all indicators. Cloud rate ARPL (Yen) 24,527 26.4% 23,678 22.5% 24,236 23,084 17.3% 24.0% 23,231 19.9% 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q FY20
Slide 7: ARR Outlook
Summary ARR Outlook Based on future implementation plans, ARPL as of 100% of cloud adoption is 28.5 thousand yen. ARR forecast for the end of 2028 is 19.7 billion yen. ARR(FY2028 year-end) = ARR(2025 1Q) × (rate of increase in cloud adoption rate) × (rate of increase in ARPL) FY2025 1Q End of FY2028
Slide 8: Business Results for 1Q FY2025
Business Results for 1Q FY2025 Copyright©2025 Broadleaf Co.,Ltd. All rights reserved. 8
Slide 9: Overview of Results for 1Q FY2025
Business Results for 1Q FY2025 Overview of Results for 1Q FY2025 Revenue increased by 18.5% year on year. The increase in revenue offset higher costs, resulting in a return to profitability at the operating profit level and below. FY2025 FY2024 (Millions of yen) YoY change YoY ratio 1Q 1Q Revenue 4,
Slide 10: Quarterly Sales & Earnings Performance
Business Results for 1Q FY2025 Quarterly Sales & Earnings Performance The trend of increasing revenue and profit has continued since 2022, when the company shifted to a subscription-based model. Although total sales declined due to a reactionary drop following large- scale transactions in Q4 2024, r
Slide 11: Sales by Service Category
Business Results for 1Q FY2025 (NEW)Sales by Service Category The subscription transition by business software customers is progressing as planned. Others increased, driven by replacement demand for PCs and related hardware. FY2025 FY2024 (Millions of yen) YoY change YoY ratio 1Q 1Q Cloud services 2
Slide 12: Breakdown of major costs
Business Results for 1Q FY2025 Breakdown of major costs Growth investment costs increased, including cloud amortization expenses and IT infrastructure procurement costs. Meanwhile, we are actively leveraging AI to enhance efficiency in administrative operations, sales proposals, and development proc
Slide 13: Balance sheet status
Business Results for 1Q FY2025 Balance sheet status Intangible assets increased due to the addition of new functions to cloud software. Other current liabilities decreased, reflecting tax payments and the shift of interest-bearing debt to the short term. FY2025 FY2024 (Millions of yen) YoY change Ma
Slide 14: Cashflow situation
Business Results for 1Q FY2025 Cashflow situation The main factors behind the decrease in operating cash flow were an increase in tax payments associated with the return to profitability and a smaller increase in contract liabilities*. FY2025 FY2024 (Millions of yen) YoY change Major breakdown of in
Slide 15: Forecasts for the first-half and Full-Year
Forecasts for the first-half and Full-Year Copyright©2025 Broadleaf Co.,Ltd. All rights reserved. 15
Slide 16: First Half Sales Forecast by Service Category
Forecasts for the first-half and Full-Year (NEW)First Half Sales Forecast by Service Category Considering that the demand for PC and hardware replacements exceeded expectations. The package system sales forecast has been revised upwards. FY2025 FY2025 Current Previous FY2024 (Millions of yen) Change
Slide 17: Forecast of first-half results
Forecasts for the first-half and Full-Year Forecast of first-half results Upward revision to the 1H operating income forecast, taking into account 1Q sales and expenses. Forecasts of financial expenses are also reflected for profit before income taxes and the following. FY2025 FY2025 Current Previou
Slide 18: Full-year forecast of revenues by Service Category
Forecasts for the first-half and Full-Year (NEW)Full-year forecast of revenues by Service Category The upward revision in first-half results includes some factors brought forward from the second half, therefore there is no change in full-year sales forecast. Accelerate customer cloud shift to aim fo
Slide 19: Forecast of full-year results
Forecasts for the first-half and Full-Year Forecast of full-year results Full-year forecasts unchanged. Aim to exceed forecasts while assessing the business environment in the 2H. FY2025 FY2025 FY2024 (Millions of yen) Current Previous Change YoY change YoY ratio Full-year forecast forecast Revenue
Slide 20: Breakdown of major costs
Forecasts for the first-half and Full-Year Breakdown of major costs While anticipating increases in IT infrastructure procurement costs and other growth-related investment costs, we will continue to improve business processes in the sales, administrative, and development domains by actively utilizin
Slide 21: Dividends forecast
Forecasts for the first-half and Full-Year Dividends forecast Shareholder returns are an important management issue, and the Company's policy is to consider dividend policy as appropriate from a comprehensive perspective, including stock liquidity. Dividend per share Shareholder Return Policy and Re
Slide 22: Medium-term management plan (2022-2028)
Medium-term management plan (2022-2028) Copyright©2025 Broadleaf Co.,Ltd. All rights reserved. 22
Slide 23: (Former) Sales plan by Service Category
Medium-term management plan (2022-2028) (Former)Sales plan by Service Category We will announce the sales plan under the new service category once it has been determined. FY2025 FY2026 FY2027 FY2028 (Millions of yen) FY2022 FY2023 FY2024 Forecast※ Plan※ Plan※ Plan※ Cloud service 2,628 5,236 7,781 11
Slide 24: Performance plan
Medium-term management plan (2022-2028) Performance plan Profit margin continues to increase because the cloud migration of package software customers is a priority measure in the medium-term plan and can be handled without increasing the cost of providing services. FY2025 FY2026 FY2027 FY2028 (Mill
Slide 25: Initiative in medium-term management plan
Medium-term management plan (2022-2028) Initiative in medium-term management plan In addition to increasing recurring revenue and expanding the accessible market through enhanced software functionality, we are actively pursuing initiatives to further improve profitability. 1 Dramatic improvement in
Slide 26: Image of Broadleaf economic zone expansion
Medium-term management plan (2022-2028) Image of Broadleaf economic zone expansion More than 40 years of digital data accumulated through business software evolves into a platform that can be used by all players in the Mobility sector. Sector size Several hundred trillion yen Sector size approx. 10
Slide 27: [Reference] Key Indicator Plans for Cloud Software
[Reference] Key Indicator Plans for Cloud Software FY2024 FY2025 FY2025 FY2028 (Millions of yen) ・・・ Year-end １Q Year-end plan Year-end plan Cloud rate 24.0% 26.4% 35% - 100% 99% 99% User retention rate 99.7% 99.7％ - or more or more Number of licenses 14,034 15,165 20,000 - 57,500 (Standard version
Slide 28: Disclaimer
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 f