Broadleaf : 3Q FY12/2022 Business Results Briefing Material (with Notes)

Becoming a leading SaaS company

in Japan

3Q FY12/2022 Business Results Briefing Material

Broadleaf Co., Ltd (3673)

November 9, 2022

Copyright©2022 Broadleaf Co.,Ltd. All rights reserved.

Contents
1. Overview of 3Q FY12/2022 Business Results
2. Results Forecast for FY12/2022
3. Progress of the Medium-Term Management Plan (2022-2028)
4. Topics
5. Supplemental Information
Copyright©2022 Broadleaf Co.,Ltd. All rights reserved. |	2

1. Overview of 3Q FY12/2022 Business Results

Copyright©2022 Broadleaf Co.,Ltd. All rights reserved. |

3

Overview of 3Q FY12/2022 Business Results

Summary

Growth in 3Q sales of monthly subscription-type services accelerated compared to 2Q.

・The number of expired contracts for packaged system ".NS Series" increased from June.＊ Explanation ・Average monthly license fee of cloud-based software service ".c Series" increased.

・Sales activities of solution corresponding to Electronic Book Storage Act "Dencho.DX" have fully started from June.

Sales of packaged systems and their ancillary services was steady.

Explanation ・".NS Series" are sold under multi-year lease contracts to clients who belong to industries which do not have ".c Series."

The Company has continued to enhance the efficiency of sales activities.

Explanation ・The Company has promoted participation in digital events and penetration of online sales and contracts.

• When clients' multi-year lease contracts for ".NS Series" expire, ".c Series" will be provided in general.
  However, to some clients (A. clients with multiple contracts, B. clients who need specific functions),
  monthly contracts of ".NS Series" will be provided for a limited period (A. until last contract expires, B. until necessary functions are equipped).

What clients with expired contracts chose	3Q	Ref.) 1H
".NS Series" (monthly contract)	30％	65％
".c Series"	70％	35％
				4
		Copyright©2022 Broadleaf Co.,Ltd. All rights reserved. |

・In Q3, as a result of progress in the medium-term management plan, growth of sales of monthly subscription-type services accelerated compared to 2Q.

・There are three reasons for the accelerated growth in sales:

■The number of expired multi-year lease contracts of packaged system ".NS series" increased from June.

■Average monthly license fees for cloud-based software service ".c Series," which the Company started full-scale provision in 2022, increased.

■Sales activities of solution corresponding to Electronic Book Storage Act "Dencho.DX" have fully started from June.

・Clients whose contracts of ".NS Series" have expired basically switch to ".c Series."

・However, in cases where the clients have several contracts with varying expiration dates (due to addition of licenses in the middle of the period, for example), or in cases where the clients wish to use a particular function, they may use ".NS series" under monthly contracts for a limited period.

・Regarding clients who belong to industries which do not have ".c Series," ".NS Series" are sold under multi-year lease contracts as in the past.

・These sales were steady, and the same applies to ancillary services.

・At the same time, since the Company anticipates cloud-based software services becoming a mainstay product in the future, it also promoted online sales activities and online promotional activities.

Overview of 3Q FY12/2022 Business Results

Overview of Consolidated Financial Results

From 2022, the Company has limited sales of packaged systems under multi-year lease contracts to industries with no ".c series," so revenue and profit has decreased.

(Millions of yen)	FY2022	FY2021	YoY change
Cumulative 3Q	Cumulative 3Q
Revenue	10,067	15,181	-5,114
Cloud service	1,767	1,302	+465
Packaged system	8,300	13,879	-5,579
Cost of sales	3,902	4,309	-407
Gross profit	6,165	10,871	-4,707
SG&A expenses, etc.	8,028	8,529	-501
Operating profit *	-1,863	2,342	-4,205
Profit before tax *	-1,914	2,340	-4,254
Profit attributable to owners of the parent *	-1,433	1,500	-2,933
Basic earnings per share*	-16.23 yen	17.07 yen	-
*minus (-) represents loss
		Copyright©2022 Broadleaf Co.,Ltd. All rights reserved. |	5

・Revenue was 10,067 million yen, a year-on-year decrease od 5,114 million yen.

・Operating loss was 1,863 million yen, a year-on-year decrease of 4,205 million yen.

・Loss attributable to owners of parent was 1,433 million yen, a year-on-year decrease of 2,933 million yen.