Slide 1: 3Q FY12/2024 Business Results Briefing Material
3Q FY12/2024 Business Results Briefing Material November 12, 2024 Broadleaf Co., Ltd Copyright©2024 Broadleaf Co.,Ltd. All rights reserved. 1 Copyright©2024 Broadleaf Co.,Ltd. All rights reserved.
Slide 2: Table of Contents
Table of Contents Key Points for the Current Fiscal Year P3 in the Medium-Term Management Plan Notes to the Financial Statements P13 Reference Information P23 Copyright©2024 Broadleaf Co.,Ltd. All rights reserved. 2
Slide 3: Key Points for the Current Fiscal Year in the Medium-Term Management Plan
Key Points for the Current Fiscal Year in the Medium-Term Management Plan Copyright©2024 Broadleaf Co.,Ltd. All rights reserved. 3
Slide 4: Summary of Financial Results
Key Points for the Current Fiscal Year in the Medium-Term Management Plan Summary of Financial Results Revenue Operating profit Solid Growth Rate Steady Return to Profitability [FY2024 cumulative results for 3Q] [FY2024 cumulative results for 3Q] 15.2% year-on-year Increase 1,810 million yen year-on
Slide 5: Quarterly Sales & Earnings Performance
Key Points for the Current Fiscal Year in the Medium-Term Management Plan Quarterly Sales & Earnings Performance In FY2022, shifted to a subscription-based earnings model, entering a medium-term trend of higher sales and profits Revenue (Millions of yen) Operating profit (Millions of yen) 331 4,537
Slide 6: Quarterly Revenues of Software Services
Key Points for the Current Fiscal Year in the Medium-Term Management Plan Quarterly Revenues of Software Services Sales from software services (subscription-based software) are driving overall revenue growth. The shift to subscription contracts is planned to continue through the end of FY2028 In 3Q
Slide 7: Key Indicators of Cloud Software
Key Points for the Current Fiscal Year in the Medium-Term Management Plan Key Indicators of Cloud Software Switching to the cloud is progressing in stages Cloud rate (%) Number of licenses (standard version) 22.5 10,644 19.9 9,310 17.3 15.3 7,934 12.9 6,856 10.7 5,477 8.6 4,441 6.5 3,490 4.6 2,523 2
Slide 8: Expansion of Cloud Software
Key Points for the Current Fiscal Year in the Medium-Term Management Plan Expansion of Cloud Software Expand applicable industries and functions as needed, broadening the customer base (market) for adoption as a total management system. FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 For Mob
Slide 9: Business Environment and Key Strategies
Key Points for the Current Fiscal Year in the Medium-Term Management Plan Business Environment and Key Strategies Business Environment Key Strategies Expected Effects [Background] [Opportunities] [Relationship] Mobility Sector Initiatives for Issue Increasing Business Negotiations with Further Stren
Slide 10: Image of Service Development
Key Points for the Current Fiscal Year in the Medium-Term Management Plan Image of Service Development Integrating and coordinating not only across our Business Software but also with other systems within the Customer’s Environment, with data transactions centrally managed on the Broadleaf Cloud Pla
Slide 11: Sales plan by service category
Key Points for the Current Fiscal Year in the Medium-Term Management Plan Sales plan by service category As cloud software adoption expands, the number of participants in the marketplace is increasing. Transaction volume is expected to grow with the entry of major regional parts distributors and man
Slide 12: Performance Plan
Key Points for the Current Fiscal Year in the Medium-Term Management Plan Performance Plan This performance plan incorporates internal factors driving cost increases, aiming to achieve an operating profit of 13 billion yen with a 40% operating profit margin by 2028. FY2022 FY2023 FY2024 FY2025 FY202
Slide 13: Notes to the Financial Statements
Notes to the Financial Statements Copyright©2024 Broadleaf Co.,Ltd. All rights reserved. 13
Slide 14: Overview of Consolidated Financial Results for the 3Q
Notes to Financial Statements Overview of Consolidated Financial Results for the 3Q Revenue increased 15.2% year on year, profit increased significantly and turned profitable FY2024 FY2023 (Millions of yen) YoY change YoY ratio Cumulative 3Q Cumulative 3Q Revenue 12,958 11,249 +1,709 +15.2% Cost of
Slide 15: 3Q Sales by Service Categories
Notes to Financial Statements 3Q Sales by Service Categories Sales of software services increased 61.1% year on year due to an increase in contracts. Sales of Operation and support service decreased due to the switch to cloud software. FY2024 FY2023 (Millions of yen) YoY change YoY ratio Cumulative
Slide 16: Breakdown of change in 3Q operating income
Notes to Financial Statements Breakdown of change in 3Q operating income Continuous optimization of cost allocation amid significant contributions from increased sales Breakdown of Changes in Operating Income (Loss) (Millions of yen) Cost of sales +:Positive factors - :Factors behind the ・Software a
Slide 17: Balance Sheet Status
Notes to Financial Statements Balance Sheet Status Increase in contract liabilities, which are advances received, amid an increase in 5-year contracts for cloud software FY2024 FY2023 (Millions of yen) YoY change Major breakdown of increase/decrease End of 3Q Year-end Cash and cash equivalents -138
Slide 18: Cash flows
Notes to Financial Statements Cash flows Operating cash flow has improved with the increase in subscription contracts, recovering to a level that exceeds investment expenditures. FY2024 FY2023 (Millions of yen) Cumulative YoY change Major breakdown of increase/decrease Cumulative 3Q 3Q Improvement i
Slide 19: Forecast of full-year consolidated results
Notes to Financial Statements Forecast of full-year consolidated results Upward revision of forecast in consideration of progress up to 3Q and current business conditions FY2024 FY2024 FY2023 (Millions of yen) Full-year Previous Revised amount YoY change YoY ratio Full-year forecast forecast Revenue
Slide 20: Forecast of full-year revenue by service category
Notes to Financial Statements Forecast of full-year revenue by service category This reflects the increase in customers temporarily putting their transition to cloud software on hold, along with strong sales of hardware and package systems for non-mobility industries. FY2024 FY2024 FY2023 (Millions
Slide 21: Breakdown of Changes in Full-Year Operating Income
Notes to Financial Statements Breakdown of Changes in Full-Year Operating Income Costs of sales, personnel expenses, infrastructure procurement expenses, etc. absorbed by the effect of cost reductions, for which the effect of increased sales greatly contributed to increased profits (Millions of yen)
Slide 22: Dividend forecast
Notes to Financial Statements Dividend forecast The end of FY2024 dividend forecast increased by 1.00 from the FY2023, to 2 yen per stock Dividend per share Basic Policy ・Although net loss for the FY2022 and FY2023, the Company paid (Yen) FY2024 FY2023 year-end dividends in light of the situation of
Slide 23: Reference Information
Reference Information Copyright©2024 Broadleaf Co.,Ltd. All rights reserved. 23
Slide 24: Number of software users
Reference Information Number of software users FY2022 FY2023 FY2024 End of 2024 (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 Forecast Companies using business support 38,098 38,354 38,549 39,345 39,547 39,771 39,955 39,985
Slide 25: Indicators related to cloud software
Reference Information Indicators related to cloud software End of 2024 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 Forecast Number of licenses* 1,306 2,056 2,857 3,620 4,656 5,649 6,721 8,156 9,301 10,73
Slide 26: Explanation of revenues by service category
Reference 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 soft
Slide 27: Service Structure (Cloud Software)
Reference 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 multiple
Slide 28: Cases of Offering Packaged Software under Monthly Subscription Contracts
Reference 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 P
Slide 29: Reasons for continued growth in software services sales
Reference Information Reasons for continued growth in software services sales [Background of continuation] Packaged software customers will gradually switch to cloud software, which will continue until the end of 2028 ①Leasing contracts for packaged software ②End of 2028 due to lease term of 6 years
Slide 30: Corporate Profile
Reference 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 7.148 b
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