Broadleaf Co., Ltd. · TSE:3673
Broadleaf — Q2 FY2024 Earnings Presentation
31 slides from Broadleaf's earnings presentation, Aug 8, 2024
Slide 1: 2Q FY12/2024 Business Results Briefing Material
2Q FY12/2024 Business Results Briefing Material August 8, 2024 Broadleaf Co., Ltd Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.
Slide 2: Table of Contents
Table of Contents Financial Results for the 2Q and Full-Year Forecast P3 Status of cloud business P13 Progress of the Medium-Term Management Plan (2022-28) P20 Supplemental Information P24 2 Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.
Slide 3: Financial Results for the 2Q and Full-Year Forecast
Financial Results for the 2Q and Full-Year Forecast P3 Status of cloud business P13 Progress of the Medium-Term Management Plan (2022-28) P20 Supplemental Information P24 3 Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.
Slide 4: Highlights
Financial Results for the 2Q and Full-Year Forecast Financial Highlights Phase of reduction of planned loss ended in 1Q, converting from 2Q to profit accumulation phase Sales Profit Cash flow Forecast for Full-Year Sales: Steady Operating income improved Free cash flow turned positive amid Progress
Slide 5: 1H results
Financial Results for the 2Q and Full-Year Forecast 1H results Stronger cost reductions amid double-digit sales growth, resulting in significant improvement in profitability FY2024 FY2023 (Millions of yen) YoY change YoY ratio 1H 1H Revenue 8,421 7,390 +1,031 +14.0% Cost of sales 2,961 2,985 -24 -0.
Slide 6: Quarterly Sales & Earnings Performance
Financial Results for the 2Q and Full-Year Forecast Quarterly Sales & Earnings Performance Revenue increased 17.2% YoY in the 2Q and operating income improved significantly to return to black in figure. (Millions of yen) Revenue (Millions of yen) Operating profit Return to black in 66 +17.2% 4,407 f
Slide 7: Breakdown of Changes in Operating Income (Loss) for the 1H
Financial Results for the 2Q and Full-Year Forecast Breakdown of Changes in Operating Income (Loss) for the 1H Both cost of sales and SG&A expenses were at the same level as the same period of the previous fiscal year, with the factors of the increase being offset by the decrease factor. (Millions o
Slide 8: Balance Sheet Status
Financial Results for the 2Q and Full-Year Forecast Balance Sheet Status While multi-year contracts for cloud software are increasing, contract liabilities, which are advances received, are increasing FY2024 FY2023 Major breakdown of (Millions of yen) YoY change 1H-end Year-end increase/decrease Cas
Slide 9: Cash flows
Financial Results for the 2Q and Full-Year Forecast Cash flows Free cash flow turned positive due to improved performance and return on investment, etc. FY2024 FY2023 (Millions of yen) YoY change Major breakdown of increase/decrease 1H 1H Improvement in loss before income taxes +1,118 Cash flow from
Slide 10: Forecast of Full-year Results
Financial Results for the 2Q and Full-Year Forecast Forecast of Full-year Results Revenue and operating profit remained unchanged from the forecast, taking into account 1H results and business trends in 2H. Cost of sales and SG&A costs of sales were revised, and profit before tax and below were revi
Slide 11: Breakdown of Changes in Full-Year Operating Income (Loss)
Financial Results for the 2Q and Full-Year Forecast Breakdown of Changes in Full-Year Operating Income (Loss) Cost of sales increased year on year due to higher amortization expenses of cloud services and purchases. Controlling the increase in SG&A expenses by continuing measures to reduce administr
Slide 12: Dividend forecast
Financial Results for the 2Q and Full-Year Forecast Dividend forecast No 1H dividend for the year ended December 31, 2024 Year-end dividend is forecast at 2 yen per share, up 1 yen from the previous fiscal year. Dividend per share Basic Policy ・Although there was a net loss in the fiscal years endin
Slide 13: Status of cloud business
Financial Results for the 2Q and Full-Year Forecast P3 Status of cloud business P13 Progress of the Medium-Term Management Plan (2022-28) P20 Supplemental Information P24 13 Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.
Slide 14: Cloud Business Highlights
Status of cloud business Cloud Business Highlights Cloud software penetration accelerated to 2Q, and licensing averages monthly and customer retention rates were in line with plan Cloud rate (%) Number of licenses (standard version) 9,310 19.9 7,934 17.3 15.3 6,856 12.9 5,477 10.7 4,441 8.6 3,490 6.
Slide 15: Continue and update cloud software sales strategy
Status of cloud business Continue and update cloud software sales strategy As a cloud software manufacturer, prioritize customer needs and update sales strategy Aggressively developing strategies that leverage the Group's strengths of a nationwide sales network and close contact with customers 2H of
Slide 16: Sales schedule for cloud software
Status of cloud business Sales schedule for cloud software For auto parts dealers, preparations are being made for release in 3Q of FY2024. The launch of the expanded version, including for auto maintenance shops, is proceeding as planned. FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 For
Slide 17: 1H sales by service category
Status of cloud business 1H sales by service category Significant increase in sales of software services due to an increase in switching to contracts Due to strategic updates, software services missed forecast but packaged system exceeded forecast FY2024 FY2024 Actual budget FY2023 (Millions of yen)
Slide 18: Quarterly Revenues Trends
Status of cloud business Quarterly Revenues Trends Increasing number of cloud software and other subscriptions As a consequence, software services (SaaS) drove the overall revenues growth trend (Millions of yen) Cloud service revenues (Millions of yen) Packaged system Revenues 1,822 1,676 2,694 1,61
Slide 19: Full-year revenues forecast by service category
Status of cloud business Full-year revenues forecast by service category Due to the strategic update, the number of users switching to cloud software will increase more than planned. On the other hand, the effectiveness of the measures came from 2Q to packaged system, and the forecast of total sales
Slide 20: Progress of the Medium-Term Management Plan (2022-28)
Financial Results for the 2Q and Full-Year Forecast P3 Status of cloud business P13 Progress of the Medium-Term Management Plan (2022-28) P20 Supplemental Information P24 20 Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.
Slide 21: Revenue forecast by service category
Progress of the Medium-Term Management Plan (2022-28) Revenue forecast by service category The average monthly license fee and customer retention rate for cloud software are trending as planned, and users who temporarily subscribe to packaged software on a monthly basis will gradually switch to clou
Slide 22: Performance plan
Progress of the Medium-Term Management Plan (2022-28) Performance plan Performance for 2025-2028 remains unchanged from the planned figures announced on February 9th. Plan to achieve operating profit in FY2024 and record high performance in FY2026 FY2024 FY2025 FY2026 FY2027 FY2028 （Billions of yen）
Slide 23: Service Area
Progress of the Medium-Term Management Plan (2022-28) Service Area Cloud software centrally manages data transactions by linking with other systems Legend Business support software (packaged-type) Business support software (cloud-type) Same products as the right Software for electronic book Ancillar
Slide 24: Supplemental Information
Financial Results for the 2Q and Full-Year Forecast P3 Status of cloud business P13 Progress of the Medium-Term Management Plan (2022-28) P20 Supplemental Information P24 24 Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.
Slide 25: Number of software users
Supplement Information Number of software users （Number of companies） End of FY2022 FY2023 FY2024 FY2024 End of 1Q End of 2Q End of 3Q End of 4Q End of 1Q End of 2Q End of 3Q End of 4Q End of 1Q End of ２Q Forecast Companies using business support 38,098 38,354 38,549 39,345 39,547 39,771 39,955 39,9
Slide 26: Indicators related to cloud software
Supplement Information Indicators related to cloud software End of （License） FY2022 FY2023 FY2024 FY2024 End of 2Q End of 2Q End of 3Q End of 4Q End of 1Q End of 2Q End of 3Q End of 4Q End of 1Q End of ２Q Forecast Number of licenses* 1,306 2,056 2,857 3,620 4,656 5,649 6,721 8,156 9,301 10,739 ー Sta
Slide 27: Service structure (Cloud software)
Supplement Information Service structure (Cloud software) Company Job license Additional license Employee Account Select the required licenses and options according to the business size and contents Select a plan according Select a license Added when to the business size according to the job multipl
Slide 28: Cases of offering packaged software under monthly subscription contracts
Supplement 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
Slide 29: Explanation of service category
Supplement Information Explanation of service category Cloud service Packaged system Software service Software sales Sales related to monthly subscription-type software Sales related to the sale of licensed software [Product type] [Product type] ・“.c series”, a cloud business support software ・“.NS
Slide 30: Corporate profile
Supplement Information Corporate profile Company Broadleaf Co., Ltd Representative Kenji Oyama, Representative Director and President Listed on Tokyo Stock Exchange Prime Market (3673) Sector Information and telecommunication Founded/established December 2005/September 2009 Capital stock 7.148 billi
Slide 31: 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