Slide 1: 2Q FY2020 Business Results Briefing
Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved.
Slide 2: Contents
Contents 1. Summary ‥‥‥‥‥‥ 02 2. Overview of 2Q Business Results ‥‥‥‥‥‥ 07 3. Results Forecasts ‥‥‥‥‥‥ 16 4. Topics ‥‥‥‥‥‥ 21 Appendix Company Profile, Revenue Categories * Financial figures indicated in this material are based on consolidated accounting to which International Financial Reporting St
Slide 3: Contents
Contents 1. Summary 2. Overview of 2Q Business Results 3. Results Forecasts 4. Topics Appendix Company Profile, Revenue Categories Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved. 2
Slide 4: Impact of COVID-19
Impact of COVID-19 Summary Negotiations were prolonged overall because many customers were unaccustomed to online negotiations. As a result, about 0.9 billion yen slid into 2H. In addition, about 0.1 billion yen was generated from frozen deals due to the deterioration of the business outlook. Theref
Slide 5: Impact by Industry
Chapter 1 Impact by Industry Summary About 0.9 billion yen slid into 2H, mainly deals in automotive industry, machine tools dealers, and mobile phone distributers. About 0.1 billion yen were frozen, mainly deals in travel agencies, bus operators, and OTRS (manufacturing industry). Similar trend is e
Slide 6: 1H Results and Full-year Forecasts
Chapter 1 1H Results and Full-year Forecasts Summary Under the unpredictable external environment, the forecasts of the 2H have been updated from the forecasts at the beginning of the period due to delay in the starting of business negotiations and the prolonged time used to conclude the negotiation
Slide 7: Release Plan for Cloud Software and Service
Chapter 1 Release Plan for Cloud Software and Service Summary The Company introduced software in advance to major customers (car inspection chains and car accessories shops) who hold the key to the early popularization of the cloud software. Simultaneously it will offer software to diverse industrie
Slide 8: Contents
Contents 1. Summary 2. Overview of 2Q Business Results 3. Results Forecasts 4. Topics Appendix Company Profile, Revenue Categories Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved. 7
Slide 9: Overview of Consolidated Business Results
Chapter 2 Overview of Consolidated Business Results Overview of 2Q Business Results Revenue and profit decreased due to prolonged business negotiations under the influence of the spread of COVID-19 （¥ million） FY2020 FY2019 YoY change YoY ratio 1H 1H Revenue 10,232 11,072 -840 -7.6% Operating profit
Slide 10: Revenue by Category
Chapter 2 Revenue by Category Overview of 2Q Business Results Sales of platforms and applications both decreased due to drop in the number of sales of software led by prolonged business negotiations （¥ million） FY2020 FY2019 YoY change YoY ratio 1H 1H Platforms 4,872 4,948 -76 -1.5% Basic 3,600 3,71
Slide 11: Breakdown of Platform Sales
Chapter 2 Breakdown of Platform Sales Overview of 2Q Business Results While monthly sales steadily increased, basic lump-sum sales which is linked to the number of software sales decreased （¥ million） FY2020 FY2019 YoY change YoY ratio 1H 1H Basic 3,600 3,717 -117 -3.1% PaaS/SaaS 2,490 2,682 -193 -7
Slide 12: Half-yearly Transition of Monthly Sales
Chapter 2 Half-yearly Transition of Monthly Sales Overview of 2Q Business Results Sales of ancillary service (Basic/Support service) remained firm regardless of the environment due to increase in the number of software users. Sales of EDI/Payment settlement struggled influenced by the environment of
Slide 13: Breakdown of Application Sales
Chapter 2 Breakdown of Application Sales Overview of 2Q Business Results Sales were largely influenced by decrease in software sales due to prolonged business negotiations. In non-automotive sector and OTRS, the original pool of deals were small and some of the deals were cancelled. （¥ million） FY20
Slide 14: Breakdown of Operating Profit
Chapter 2 Breakdown of Operating Profit Overview of 2Q Business Results Decline in cost of sales was limited due to increase in sales of equipment and amortization expense. Reduced costs including advertising expense and operating expense but failed to complement the impact. （¥ million） Operating +
Slide 15: Overview of the Balance Sheet
Chapter 2 Overview of the Balance Sheet Overview of 2Q Business Results No significant changes other than increase in intangible assets gained by cloud software development investment and borrowing from the bank. （¥ million） FY2020 End of Main factors of YoY change End of 1H FY2019 increase/decrease
Slide 16: Overview of Cash Flow
Chapter 2 Overview of Cash Flow Overview of 2Q Business Results Cash deposit balance remained stable due to investment control and borrowing from the bank. （¥ million） FY2020 FY2019 YoY Main factors of 1H 1H change increase/decrease Decrease in operating and other receivables +569 Decrease in operat
Slide 17: Contents
Contents 1. Summary 2. Overview of 2Q Business Results 3. Results Forecasts 4. Topics Appendix Company Profile, Revenue Categories Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved. 16
Slide 18: Consolidated Results Forecasts
Chapter 3 Consolidated Results Forecasts Results Forecasts Under the unpredictable external environment, the forecasts of the 2H of FY2020 has been updated from the forecasts at the beginning of the period due to delay in the starting of business negotiations and prolongment in time used to conclude
Slide 19: Sales Forecasts by Revenue Categories
Chapter 3 Sales Forecasts by Revenue Categories Results Forecasts Sales of Platforms will be influenced by drop in lump-sum sales which is linked to the number of software sales. Sales of Applications is expected to decrease due to drop in software sales caused by prolonged business negotiations and
Slide 20: Breakdown of Operating Profit (Full-year)
Chapter 3 Breakdown of Operating Profit（Full-year） Results Forecasts While continuing R&D expenses on new service, optimize operating and personnel expenses by increasing telework ratio, and promote reduction of general expenses. Still, complementation of the decrease in revenue is expected to be di
Slide 21: Dividend per Share
Chapter 3 Dividend per Share Results Forecasts The interim dividend of ¥6.60 will be paid as planned, no change year-end dividend forecast of ¥6.60, planning to continue increasing annual dividend Annual dividend Dividend policy Annual dividend ¥13.00 ¥13.20 Considering to raise the target dividend
Slide 22: Contents
Contents 1. Summary 2. Overview of 2Q Business Results 3. Results Forecasts 4. Topics Appendix Company Profile, Revenue Categories Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved. 21
Slide 23: Anti-COVID-19 Measures
Chapter 4 Anti-COVID-19 Measures Topics Assuming that society will continue to live with COVID-19, the Company will pursue initiatives to secure the safety of customers, business partners, and employees. Workstyle • Control the coming-to-work rate using a system of rotation (a weekly average of less
Slide 24: Support Customers Affected by the Heavy Rainfall in July 2020
Chapter 4 Support Customers Affected by the Heavy Rainfall in July 2020 Topics To pursue recovery and restoration efforts for damage caused by the downpour that continued across Kyushu as quickly as possible, the Company supported customers in terms of funds, IT infrastructure, and activities. Finan
Slide 25: Contents
Contents 1. Summary 2. Overview of 2Q Business Results 3. Results Forecasts 4. Topics Appendix Company Profile, Revenue Categories Copyright©2020 Broadleaf.Co.,Ltd. All rights reserved. 24
Slide 26: Company Profile
Appendix Company Profile Appendix 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) Sector Information and communication sector Founded/Established Decem
Slide 27: Revenue Categories (1) Types of Service
Revenue Categories (1) Appendix Appendix Types of Service For a customer company, the Company provides 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-
Slide 28: Revenue Categories (2) Correspondence Relationship with Revenue Categories
Revenue Categories (2) Appendix Appendix 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 Catego
Slide 29: Revenue Categories (3) Contract Renewal Timing
Revenue Categories (3) Appendix Contract Renewal Timing Most customer companies choose a lease contract. There are cases where the Company takes over the remaining lease payments as a “trade-in” before the expiration of the software lease period. In the case of a 6-year contract Trade-in Amount reco
Slide 30: Disclaimer
Disclaimer Results forecasts and future predictions provided in this document are the Company’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 f