Broadleaf Co., Ltd. · TSE:3673
Broadleaf — Q1 2024 Earnings Presentation
34 slides from Broadleaf's earnings presentation, May 9, 2024
Slide 1: 1Q FY12/2024 Business Results Briefing Material
1Q FY12/2024 Business Results Briefing Material May 9, 2024 Broadleaf Co., Ltd. Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.
Slide 2: Table of Content
Table of Content Business Results for 1Q FY2024 P３ Earnings forecast for the first half P11 and full year Progress of the Medium-Term P21 Management Plan (2022-28) Supplement Information P27 Copyright©2024 Broadleaf Co.,Ltd. All rights reserved. 2
Slide 3: Business Results for 1Q FY2024
Business Results for 1Q FY2024 P３ Earnings forecast for the first half P11 and full year Progress of the Medium-Term P21 Management Plan (2022-28) Supplement Information P27 Copyright©2024 Broadleaf Co.,Ltd. All rights reserved. 3
Slide 4: Information & Consideration
Information & Consideration [Basic IR Policy] If a new risk that causes fluctuations in business results arises, the Company will appropriately disclose the estimated impact on business results. [Risks and Notes that occurred in the 1Q of the current fiscal year under review] The sales timing of clo
Slide 5: First quarter summary
Business results for 1Q FY2024 First quarter summary ・Steady start toward achieving full-year operating profit ・Initiate measures for new risk factors at an early stage to improve the accuracy of plan achievement Business environment ・Our customers are increasingly interested in DX (Digital Transfor
Slide 6: Summary of first quarter results
Business results for 1Q FY2024 Summary of first quarter results ・Continued double-digit revenue growth as software users increasingly switch to monthly subscriptions ・Promoted measures to improve operational efficiency and absorbed cost increase factors, resulting in significant improvement in profi
Slide 7: Revenue by service category
Business results for 1Q FY2024 Revenue by service category ・The increase in software service revenue exceeded the decrease in operation and support service revenue due to the shift to monthly subscriptions FY2024 FY2023 （Millions of yen） Y o Y change Y o Y ratio 1Q 1Q Cloud service 1,676 935 +741 +7
Slide 8: Factors behind changes in Operating profit Y to Y
Business results for 1Q FY2024 Factors behind changes in Operating profit Y to Y ・While fixed costs are on the rise, the Company is promoting variable cost optimization and consumption control Operating loss Cost of sales （Millions of yen） ＋：Profit increase factors ・ Decrease in development costs to
Slide 9: Balance sheet status
Business results for 1Q FY2024 Balance sheet status ・Cash and cash equivalents increased due to increases in borrowings and contract liabilities, etc. ・Intangible assets increased due to continued investment in cloud service development FY2024 FY2023 Major breakdown of （Millions of yen） Y o Y change
Slide 10: Cash flows status
Business results for 1Q FY2024 Cash flows status ・Operating cash flow increased due to increased revenue due to stock sales and decreased purchasing amount. FY2024 FY2023 YoY Major breakdown of （百万円） 1Q 1Q change increase/decrease Improvement in loss before-tax ＋499 Decrease in operating and other p
Slide 11: Earnings forecast for the first half and full year
Business Results for 1Q FY2024 P３ Earnings forecast for the first half P11 and full year Progress of the Medium-Term P21 Management Plan (2022-28) Supplement Information P27 Copyright©2024 Broadleaf Co.,Ltd. All rights reserved. 11
Slide 12: Forecast for the second quarter and beyond
Earnings forecast for the first half and full year Forecast for the second quarter and beyond The risks listed here are calculated based on the risks and notes listed on page 4. 2Q（Apr-Jun） Our situation: We have postponed the sales timing of cloud software for auto parts dealers to after 3Q and are
Slide 13: Earnings forecast for the first half
Earnings forecast for the first half and full year Earnings forecast for the first half ・Previous forecasts (Feb 9, 2024) have been revised upward to reflect for the first quarter results within current business conditions. ・The Company reviewed the sales schedule for cloud software, but the impact
Slide 14: Earnings forecast for the first half of Revenue by service category
Earnings forecast for the first half and full year Earnings forecast for the first half of Revenue by service category ・The Company is prepared to continue to move toward subscriptions as planned, and cloud service is expected to continue as expected. ・Package system sales and ancillary services are
Slide 15: Earnings forecast for the second half
Earnings forecast for the first half and full year Earnings forecast for the second half ・The Company has factored into our second-half forecast a decrease in sales revenue of 150 million yen and an increase in cost of sales of 100 million yen as risks to business results due to a review of the clou
Slide 16: Earnings forecast for the second half of Revenue by service category
Earnings forecast for the first half and full year Earnings forecast for the second half of Revenue by service category ・As a risk to sales revenue due to a review of the cloud software sales schedule, a decrease of 100 million yen for Software services and 50 million yen for Marketplaces has been f
Slide 17: Earnings forecast for full-year
Earnings forecast for the first half and full year Earnings forecast for full-year ・The first half forecast has been revised upward and the second half forecast has been revised downward from the previous forecast (Feb 9, 2024). With these factors offsetting, the full-year forecast remains unchanged
Slide 18: Earnings forecast for the full-year of Revenue by service category
Earnings forecast for the first half and full year Earnings forecast for the full-year of Revenue by service category ・The number monthly subscription plans has increased significantly from the second half. In parallel with this, the Company has been implementing recovery measures against developmen
Slide 19: Breaking down of changes in operating profit forecast
Earnings forecast for the first half and full year Breaking down of changes in operating profit forecast ・The decrease in upfront costs that occurred in the previous period and the increase in costs due to high property prices are balanced Operating profit/loss Cost of sales （Millions of yen） Decrea
Slide 20: Dividends forecast
Earnings forecast for the first half and full year Dividends forecast ・The dividends forecast for FY2024 is underdetermine ・Scheduled to be announced as soon as the decision is made Dividend per share Explanation ・Although net loss was recorded in FY2024 FY12/2022 and FY12/2023, dividends （Yen） （For
Slide 21: Progress of the Medium-Term Management Plan (2022-28)
Business Results for 1Q FY2024 P３ Earnings forecast for the first half P11 and full year Progress of the Medium-Term P21 Management Plan (2022-28) Supplement Information P27 Copyright©2024 Broadleaf Co.,Ltd. All rights reserved. 21
Slide 22: Sales schedule for cloud software
Sales schedule for cloud software ・Introduced auto maintenance shops and auto body shops in advance to some customers in FY2020 and began sales in the 4Q of FY2021 ・Since then, we have been responding to diversifying customer needs by expanding target industries and providing an expanded version of
Slide 23: Performance plan
Progress of the Medium-Term Management Plan (2022-28) Performance plan ・Performance plan for 2024-2028 remain unchanged from the planned figures announced on Feb 9, 2024. ・Plan to achieve operating profit in FY2024 and renew record high performance in FY2026 FY2024 FY2025 FY2026 FY2027 FY2028 （Billi
Slide 24: Revenue forecast by service category
Progress of the Medium-Term Management Plan (2022-28) Revenue forecast by service category ・Only the sales breakdown for FY2024 has been revised from the forecast announced on Feb 9th, 2024. FY2024 FY2025 FY2026 FY2027 FY2028 （Billions of yen） FY2022 FY2023 Forecast Plan Plan Plan Plan Cloud service
Slide 25: Progress and Latest Outlook for Cloud Indicators (1)
Progress of the Medium-Term Management Plan (2022-28) Progress and Latest Outlook for Cloud Indicators (1) ・Targets for the end of FY2024: cloud adoption rate = 30%, number of licenses = 16,000 ・The number of projects switching to cloud software is expected to increase from the 2H of FY2024 Cloud tr
Slide 26: Progress and Latest Outlook for Cloud Indicators (2)
Progress of the Medium-Term Management Plan (2022-28) Progress and Latest Outlook for Cloud Indicators (2) ・Targets for the end of FY2024: Average monthly license sales = 24,000yen, user retention rate = 99% or more ・Mid-to large-sized users are expected to switch to cloud software from the 2H of FY
Slide 27: Supplement Information
Business Results for 1Q FY2024 P３ Earnings forecast for the first half P11 and full year Progress of the Medium-Term P21 Management Plan (2022-28) Supplement Information P27 Copyright©2024 Broadleaf Co.,Ltd. All rights reserved. 27
Slide 28: Number of software users
Supplement Information Number of software users End of FY2022 FY2023 FY2024 FY2024 （number of companies） 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 Forecast Companies using business support software 38,098 38,354 38,549 39,345 39,547 39,771 39,955 39,98
Slide 29: Indicators related to cloud software
Supplement Information Indicators related to cloud software FY2022 FY2023 FY2024 End of FY2024 （License） 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 Forecast Number of licenses* 1,306 2,056 2,857 3,620 4,656 5,649 6,721 8,156 9,301 ー Standard Edition 307
Slide 30: 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 to the Select a license according to the Added when multiple people business
Slide 31: 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 32: 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 33: 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 34: 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