Slide 1: FY12/2024 Business Results Briefing Material
FY12/2024 Business Results Briefing Material Broadleaf Co., Ltd February 7, 2025 Copyright©2025 Broadleaf Co.,Ltd. All rights reserved. 1 Copyright©2025 Broadleaf Co.,Ltd. All rights reserved.
Slide 2: Apology and Correction
Apology and Correction We have classified and disclosed the results of cloud software implementation into the following 2 categories. "Existing client": Customers who switched from our packaged software to cloud software "New client": Customers who have not used our packaged software Recently, we id
Slide 3: Contents of Correction
Contents of Correction Corrections will be underlined. [Number of Software Users] FY2024 FY2024 FY2024 (Companies) End of 1Q End of 2Q End of 3Q Before After Before After Before After Cloud software standard edition 5,871 5,871 6,837 6,837 7,623 7,623 Existing client 3,326 3,389 3,749 4,128 4,022 4,
Slide 4: Table of Contents
Table of Contents Summary P5 Business Results for the FY12/2024 P6 Results Forecasts for FY12/2025 P13 Update on Medium-Term Management Plan (2022-2028) P19 Action to Implement Management that is Conscious of P25 Cost of Capital and Stock Price Supplemental Information P31 Copyright©2025 Broadleaf C
Slide 5: Summary
Summary Summary In 2022, alongside the full renewal and cloud migration of our core business software, we transitioned our sales model to a subscription-based model. We formulated the Medium-Term Management Plan (2022-2028) with the goal of completing customer cloud migration by the end of 2028. Wit
Slide 6: Business Results for the FY12/2024
Business Results for the FY12/2024 Copyright©2025 Broadleaf Co.,Ltd. All rights reserved. 6
Slide 7: Overview of the Consolidated Financial Results for FY12/2024
Business Results for the FY12/2024 Overview of the Consolidated Financial Results for FY12/2024 Revenue increased 17.3% year on year Operating profit and subsequent profit figures saw a significant increase, turning profitable due to higher revenue and cost reduction effects. (Millions of yen) FY202
Slide 8: Quarterly Performance Trends
Business Results for the FY12/2024 Quarterly Performance Trends The trend of increasing revenue and profit has continued since the transition to a subscription-based sales model. In Q4 2024, sales saw a significant increase due to the early recognition of large-scale project revenues (lump-sum sales
Slide 9: Sales by Service Category
Business Results for the FY12/2024 Sales by Service Category Revenue from software services increased with the progress of the subscription transition for business software. Sales of packaged software grew due to the recognition of large-scale projects and strong hardware performance. (Millions of y
Slide 10: Breakdown of Major Costs
Business Results for the FY12/2024 Breakdown of Major Costs Revenue growth contributed significantly to profitability improvement. Business process efficiency was enhanced through DX promotion, including the active utilization of AI technology. Breakdown of Changes in Operating Income (Loss) (Millio
Slide 11: Balance Sheet Status
Business Results for the FY12/2024 Balance Sheet Status Intangible assets increased due to the expansion of target industries for cloud software and the addition of new functions. Contract liabilities, which represent advances received, increased as the number of 5-year contracts for cloud software
Slide 12: Cash Flows Status
Business Results for the FY12/2024 Cash Flows Status As the number of 5-year contracts for cloud software increased, Free cash flow surged despite continued investment in software development. (Millions of yen) FY2024 FY2023 YoY change Major breakdown of increase/decrease Increase in profit and loss
Slide 13: Results Forecasts for FY12/2025
Results Forecasts for FY12/2025 Copyright©2025 Broadleaf Co.,Ltd. All rights reserved. 13
Slide 14: Points of FY12/2025 Sales and Cost Forecast
Results Forecasts for FY12/2025 Points of FY12/2025 Revenue per license is expected to continue rising with the introduction of cloud software for Software service parts dealers, recycling businesses, and other industries. Based on the cloud adoption trends among major auto maintenance shops, parts
Slide 15: Consolidated Results Forecast for FY12/2025
Results Forecasts for FY12/2025 Consolidated Results Forecast for FY12/2025 Revenue continued to grow by double digits, offsetting the reactionary decline. Despite cost increases, operating income and below more than doubled year-on-year. FY2025 FY2024 FY2025 FY2024 (Millions of yen) Full-year YoY r
Slide 16: Sales Forecast by Service Category
Results Forecasts for FY12/2025 Sales Forecast by Service Category The increase in revenue from software services offset the reactionary decline in package software sales. The recurring revenue ratio increased as the shift to cloud software (subscription) progressed. FY2025 FY2024 FY2025 FY2024 (Mil
Slide 17: Breakdown of Changes in Operating Profit Forecast
Results Forecasts for FY12/2025 Breakdown of Changes in Operating Profit Forecast Amortization expenses increased due to the expansion of cloud software features. In addition to continued increases in IT infrastructure procurement costs, security enhancement measures are planned. Breakdown of Change
Slide 18: Dividend Forecast
Results Forecasts for FY12/2025 Dividend Forecast For the fiscal year ending December 31, 2024, a year-end dividend of 2.00 yen per share is planned. For the fiscal year ending December 31, 2025, the annual dividend is forecasted to be 4.00 yen (2.00 yen each at interim and year-end). Dividend per s
Slide 19: Update of Medium-Term Management Plan (2022-2028)
Update of Medium-Term Management Plan (2022-2028) Copyright©2025 Broadleaf Co.,Ltd. All rights reserved. 19
Slide 20: Key Points of the 2026-2028 Performance Plan
Update of Medium-Term Management Plan (2022-2028) Key Points of the 2026-2028 Performance Plan From 2026 onward, the pace of license growth is expected to accelerate as the company plans Software service to speed up cloud adoption among existing customers. From 2027 onward, in addition to increased
Slide 21: Key Indicators of Cloud Software
Update of Medium-Term Management Plan (2022-2028) Key Indicators of Cloud Software The target of achieving a 100% cloud adoption rate by the end of 2028 remains unchanged. We will continue to propose cloud solutions that enhance added value for customers. Cloud rate (%) User retention rate (standard
Slide 22: Expansion of Marketplace Participants
Update of Medium-Term Management Plan (2022-2028) Expansion of Marketplace Participants Buyers: Expanded and more open, increasing from 3,000 companies in the previous version to 23,000 in the cloud version. Sellers: In addition to parts dealers and recycling businesses, automaker-affiliated compani
Slide 23: Sales Plan by Service Category (Updated)
Update of Medium-Term Management Plan (2022-2028) Sales Plan by Service Category (Updated) Updated the sales plan for 2025 and beyond to reflect the cloud software sales strategy. The marketplace sales plan incorporates the expected increase in participants from 2027. FY2022 FY2023 FY2024 FY2025 FY2
Slide 24: Performance Plan (Updated)
Update of Medium-Term Management Plan (2022-2028) Performance Plan (Updated) Updated the profit plan for 2027 in addition to the sales plan for 2025 and beyond. The record-high operating income target for 2026 and the 2028 operating income target of 13 billion yen remain unchanged. FY2022 FY2023 FY2
Slide 25: Action to Implement Management Conscious of Cost of Capital and Stock Price
Action to Implement Management that is Conscious of Cost of Capital and Stock Price Copyright©2025 Broadleaf Co.,Ltd. All rights reserved. 25
Slide 26: Consideration of the Cost of Capital
Action to Implement Management that is Conscious of Cost of Consideration of the Cost of Capital Capital and Stock Price Estimate the cost of equity capital (expected return for equity investors) using the CAPM model. Cost of (shareholder’s) Equity = Risk free rate + Equity Risk Premium × Beta value
Slide 27: PER Performance
Action to Implement Management that is Conscious of Cost of PER Performance Capital and Stock Price Achieve an average of 20 times or more in the period from "stable earnings" to "revenues adjustment" Completed the "planned deficit period" and entered the "earnings recovering period" in 2024, and PE
Slide 28: PBR Performance
Action to Implement Management that is Conscious of Cost of PBR Performance Capital and Stock Price 2.2-2.5 times in the period of stable earnings to revenues adjustment Secure 1.5 times or more in the "planned deficit period" Up 2.6 times in 2024, when the economy entered a recovery phase ～In 2019
Slide 29: ROE Results and Projections
Action to Implement Management that is Conscious of Cost of ROE Results and Projections Capital and Stock Price Although ROE declined temporarily due to the shift to a subscription model, Expected to exceed the cost of shareholders' equity from 2026 after the "profit recovery period" as planned ～In
Slide 30: Efforts to Enhance Shareholder Value
Action to Implement Management that is Conscious of Cost of Efforts to Enhance Shareholder Value Capital and Stock Price Increasing shareholder value is viewed as an increase in PBR(=ROE×PER), and initiatives are being promoted. After assessing the probability of achieving the results targets in the
Slide 31: Supplemental Information
Supplemental Information Copyright©2025 Broadleaf Co.,Ltd. All rights reserved. 31
Slide 32: Number of Software Users
Supplemental Information Number of Software Users FY2022 FY2023 FY2024 (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 End of 2Q End of 3Q End of 4Q Mobility sector * ** of cloud software companies 395 991 1,557 2,231 2,973 3,744 4,527 5,381 6,04
Slide 33: Indicators Related to Cloud Software
Supplemental Information Indicators Related to Cloud Software FY2022 FY2023 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 End of 2Q End of 3Q End of 4Q Number of licenses* 1,306 2,056 2,857 3,620 4,656 5,649 6,721 8,156 9,301 10,739 12,177
Slide 34: Explanation of Revenues by Service Category
Supplemental Information Explanation of Revenues by 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 s
Slide 35: Service Structure (Cloud Software)
Supplemental Information Service Structure (Cloud Software) Company license Job license Additional 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 ＋ m
Slide 36: Cases of Offering Packaged Software under Monthly Subscription Contracts
Supplemental 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 softwar
Slide 37: Corporate Profile
Supplemental Information Corporate Profile Company Name 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 7.14
Slide 38: 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