Broadleaf Co., Ltd. (Securities Code: 3673 / TSE 1 st...2Q FY12/2013 Business Results Briefing Broadleaf Co., Ltd. (Securities Code: 3673 / TSE 1 st) August 8, 2013

2Q FY12/2013 Business Results Briefing

Broadleaf Co., Ltd.

(Securities Code: 3673 / TSE 1st)

August 8, 2013

Overview of FY12/2013

Results and Forecasts

� 1H FY12/2013: Both net sales and incomes reached the initial forecasts due to the solid

performance of both Business Application Software and Network Service

� Full-year forecasts: No revision from the initial forecasts

Summary of FY12/2013 Results and Forecasts

2Copyright (c) Broadleaf Co., Ltd. All rights reserved.

(¥ million)

1H of

FY12/2013

Results

YoY Change

Compared

to initial

forecasts

FY12/2013

Full-year

forecasts

1H FY12/2012

Results

1H FY12/2013

Initial forecasts

Net Sales 8,468 +1,022 +167

17,851 7,445 8,301 113.7% 102.0%

Operating

Income1,539

+826 +1774,042 712 1,362

216.0% 113.0%

Ordinary

Income1,463

+802 +1693,952 660 1,294

221.6% 113.1%

Net Income 727 +489 +106

2,089 238 621 305.4% 117.1%

7,459 7,445

8,468

7,857 8,196

9,383

0

2,000

4,000

6,000

8,000

10,000

2011年12月期 2012年12月期 2013年12月期上半期下半期

596 712

1,539

1,175

1,401

2,503

0

500

1,000

1,500

2,000

2,500

3,000

2011年12月期 2012年12月期 2013年12月期上半期下半期

� Automotive aftermarket � Business with more emphasis on the second half

Changes in Operating Income (Half-Year Periods)


¥ millionOperating IncomeNet Sales

¥ million

FY12/2011 FY12/2012 FY12/2013

1H 2H

FY12/2011 FY12/2012 FY12/2013

1H 2H

� Business Application Software:

Disposition of dormant licenses was almost completed

Net sales increased due to demand for the renewal of lease contracts (6 years).

� System Support: Both maintenance and the provision of consumables remained firm.

� Network Service: Stock-type services expanded along with the rising proportion of

network-type licenses.

Sales Trends by Category


FY12/2011 FY12/2012 FY12/2013

1H Full-year 1H Full-year 1H

Business Application Software 5,677 11,645 5,347 11,353 6,187

System Support 626 1,258 641 1,279 644

Maintenance 274 570 298 603 306

Provision of consumables 351 688 342 676 338

Network Service 1,155 2,412 1,457 3,008 1,636

(¥ million)

� The proportion of network systems, which serve as the infrastructure of our Network Service,

has been increasing steadily.

Changes in Proportion of Network-Type Licenses


Proportion of licenses of network systems in the sales of Business Application Software

4.6%6.0%

9.6%

13.0%

16.7%

20.0%

27.1%

32.0%

38.9%

44.2%

FY end 1H FY end 1H FY end 1H FY end 1H FY end 1H

FY12/2008 FY12/2009 FY12/2010 FY12/2011 FY12/2012 FY12/2013

end end end end end

� Achieving stronger balance sheets

Balance Sheets at the End of 2Q FY12/2013


Cash and deposits

- Increased with the issuing of new

shares at the time of listing

- Increased with the posting of

incomes

Loans payable

- Repaid steadily

Goodwill

- Goodwill arising at the time of

MBO amortized steadily(Amortized over 20 years since

FY12/2010)

(¥ million)

End of 2Q

FY12/2013

Change

from FY12/12

End

Current assets 11,808 8,761 3,046

Cash and deposits 6,833 3,604 3,228Noncurrent assets 13,407 13,857 (450)

Property, plant and equipment 520 520 0

Intangible assets 12,161 12,475 (314)

Goodwill 11,034 11,368 (334)Investments and other assets

725 860 (135)

Total assets 25,216 22,619 2,597

Current liabilities 5,406 5,169 237

Loans payable 1,500 1,500 0Noncurrent assets 1,707 2,431 (724)

Long-term loans payable 1,500 2,250 (750)

Total liabilities 7,113 7,600 (487)

Total net assets 18,102 15,018 3,084Total liabilities and net assets 25,216 22,619 2,597

End of FY12/

2012

� Ample cash flows

Statements of Cash Flows for 1H FY12/2013


(¥ million)

* FCF = CF from operating activities + CF from investing activities

1H FY12/2013 1H FY12/2012YoY Change

Amount

Net cash provided by (used in) operating activities

1,811 1,330 480

Net cash provided by (used in) investing activities

(175) (300) 124

Net cash provided by (used in) financing activities

1,592 (1,033) 2,626

Net increase (decrease) in cash and cash equivalents

3,228 (3) 3,232

Cash and cash equivalents at end of period 6,833 2,920 3,913

Free cash flows (FCF) 1,636 1,030 605

� Real total expenses are estimated to be around ¥13.5 billion

� Earnings structure with high marginal income ratio

� Increase in FCF due to the penetration of Network Service, in addition to the stable client base

Cost Structure and Ability to Create Cash


Net Sales and Real Total Expenses(¥ million) Changes in Free Cash Flows

5,489

3,944

0

2,000

4,000

6,000

EBITDA FCF

(¥ million)

* Real total expenses = Cost of sales + SG&A expenses – Amortization of goodwill * FCF = CF from operating activities + CF from investing activities

FY12/07 FY12/08 FY12/09 FY12/10 FY12/11 FY12/12 FY12/13

(forecast)

Real total expenses Net Sales

FY12/07 FY12/08 FY12/09 FY12/10 FY12/11 FY12/12 FY12/13

(forecast)

Growth Strategies of Broadleaf


Business operations in China

Overseas: Approaching growth markets

Japan: Strengthening the Industrial Platform

M&A

We accelerate our growth in Japan and overseas

as a new type of information service company with its roots in industry,

which supports the creation of users’ business.

Expansion of the Industrial Platform

in the automotive aftermarket

Expansion of the Platform to other industries

around the automotive aftermarket

Expansion into ASEAN countries

Enhancement of Network Service

Operation of automotive business by drawing

on the expertise we have developed in Japan

Our Growth Strategies


Increasing

the number

of users

Stock-type or

Transaction-

type Revenue

Flow-type

Revenue

(six-year cycle)

Increasing network

system users

• Increasing the frequency of use

• Expanding network services

Japan: Strengthening the Industrial Platform

Growth

Gro

wth

� Database provision

� Server provision

� System Support (maintenance, provision of consumables)

� Business Application Software

Payment agency

service for

recycled parts

� Network Service� Services provided on the Industrial Platform

(Services connecting different business categories, Carpod Tab, etc.)

Network systemsStandalone

systems

Growth

12

Car owners

perceptionUsers

• Looks exclusive for

the first time

• Explanation is difficult

• Difficult to understand

the content of an

estimate

• Waiting time is long

• Having difficulty

attracting customers,

despite strong

technical capabilities

• Not recognized,

despite having a

factory

Support forattracting clients

Support for improving services

Support toincrease satisfaction

on both sides

Increasing

satisfaction

Increasing

earnings of users

Increasing

our earnings

Copyright (c) Broadleaf Co., Ltd. All rights reserved.

(1) New Marketing Strategies: Efforts for B2B2C

13

WEB

Store support/ sales promotion support

Promote incoming

Increase satisfaction

of car owners

Promote repeaters

Able to consult!Able to understand!Shop with mechanic

Promote recognition and understanding

Increase our

earnings

opportunities

Specific initiatives

PR through media

Operation of search site, etc.

for safety inspection

Providing ornament tools to lead

car owners to our user shops

• Supporting the use of IT with a tablet terminal

• Providing a Wi-Fi spot at the shop

(Supporting the use of our Wi-Fi services)

• Website production support service

• Holding a seminar to increase customer satisfaction

and share information on success cases



14

Logo of Car-unselor in Your Town


Able to consult! Able to understand!

Car-unselor* in Your Town

* Counselor of cars for car owners


Able to consult! Able to understand!

About your car

Car-unselor in Your Town

Ornament tools to lead car

owners to our user shops


Entered into a development outsourcing agreement with

JX Nippon Oil & Energy Corporation

JX Nippon Oil &

Energy Corporation

ENEOS

Car owners

Providing individual car owners

with services using a tablet

terminal and a smartphone

Oct.

2013 -

Providing services through business-oriented

applications and networks

- Enhancing our network services

- Accelerating an increase in the number of users

(2) Business Expansion through Alliance

16

Sales company of

automobile

information systems(Joint venture)

Established in

July 2013

Beijing Japan-China

Automobile Recycling

Center(Joint venture)

Established in

April 2013

Broadleaf China(Wholly-owned

subsidiary)

Established in

October 2012

License

Commissions

Introduction of recycling factories

Revenues

Technical support

ConsultingPayment

Broadleaf Co., Ltd.

A 28% stakeA 51% stakeA 100% stake

Parts

distribution

in China

Automobile recycling centerMaintenance shops/

Bodywork shops

Earnings

source

Potential for

expansion

Revenue


Business

application

software, etc.

Overseas:

Approaching Growth Markets - Operations in China -

17


ASEAN Countries

Promoting business with high investment efficiency using common

network infrastructure to extend the Industrial Platform to overseas

China � Common network infrastructure

� Database construction know-how

� Coding scheme, etc.

Industrial Platform in Japan

Localization of systems

Overseas:

Approaching Growth Markets - Developing Efficient Systems -

Reference

Summary of FY12/2013 Business Results and Forecasts


(¥ million)1H FY12/2012

Results

1H FY12/2013

Results

Net Sales 7,445 8,468 15,641 17,851

Business ApplicationSoftware

5,347 6,187 11,353 12,982

System Support 641 644 1,279 1,386

Network Service 1,457 1,636 3,008 3,482

Cost of Sales 2,259 2,262 4,616 4,247

Gross Profit 5,186 6,205 11,025 13,604

SG&A Expenses 4,473 4,666 8,911 9,561

(Amortization of goodwill) 334 334 668 668

Operating Income 712 1,539 2,114 4,042

Ordinary Income 660 1,463 2,035 3,952

Net Income 238 727 815 2,089

EPS (¥) 10.61 30.63 36.30 86.12

Return on equity (ROE) - - 5.6% 11.9%

EBITDA* 1,407 2,204 3,522

* EBITDA = Operating Income + Depreciation + Amortization of goodwill

FY12/2012 FY12/2013

Full-year results Full-year forecasts


Corporate Name: Broadleaf Co., Ltd.

President and CEO: Kenji Oyama

Stock Listing: The First Section of the Tokyo Stock ExchangeSecurities Code: 3673 (Listed on March 22, 2013)

Founded/Established: December 2005/September 2009

Capital Stock: ¥ 6,793,205,000

Business Outline: Development and sales of business applications, provision of network services, maintenance services, etc. for specific businesses centering on the automotive aftermarket industry

Head Office Location: Floor 8, Glass Cube Shinagawa, 4-13-14, Higashi-Shinagawa, Shinagawa-ku, Tokyo

Business Offices: 35 offices in Japan

Development Centers: 3 centers in Japan (Sapporo, Tokyo and Fukuoka)

Number of Employees: 846

Corporate PhilosophyGratitude and Satisfaction: These are the underlying principles

that drive our creation of new corporate value

as we develop enterprise solutions for our partner-clients.

(as of June 30, 2013)

Our Profile

21

The automotive aftermarket refers to a market of products and services to be used by car owners

after purchase of their vehicles, including gasoline, accessories, safety inspections,

maintenance checks, replacement of parts, and sales and scrapping.


Automotive Aftermarket

22Copyright (c) Broadleaf Co., Ltd. All rights reserved. Car Owners

We connect participants in a very large, divided market with a common network infrastructure and

promote the Industrial Platform to help users improve their operational efficiency and create businesses.

Database A variety of vehicle

information, parts

information, accessory

information, indexes, etc.

Common

Infra

stru

cture

Industrial Platform

Large shares established

in each industry

Recycled parts market

Maintenance shops, bodywork shops, retailers of automobile supplies,

gas stations, etc.

Retailers

Parts dealers, used parts dealers

Trading companies

Recycling companies, automotive glass shops, automotive electric wiring

companies, radiator manufacturers

Manufacturers

The database of parts

information, which is essential

for the business, has been

accumulated for 30 years,

creating a high barrier to entry.

- Common network infrastructure

We develop systems for multiple business

categories from the industry’s upstream to

downstream on a common network

infrastructure, which enables information

sharing.

- Industry-standard database

BL Code, an industry standard code

unifying information on parts, which differs

between parts manufacturers.

Our Strengths

Direction of the future growth

23

Network Service

System Support

Business Application

Software

(1) Increasing the frequency

of network usage

(2) Increasing

the number

of users

Latest specific initiatives

(1) Increasing the frequency of network usage

- New marketing strategies

� Aiming for (2) in the medium term

- Alliance with scan tools made by Denso

- Direct sales of tablet terminals of KDDI (au)

- Release of new services from CarpodTab

(2) Increasing the number of users

- Conclusion of a development consignment agreement with

JX Nippon Oil & Energy Corporation

- Business alliance with JMA Consultants Inc. (JMAC)


Strengthening the Industrial Platform

� Delivering SF.NS Failure Diagnostic System Alliance Option that links scan

tool (failure diagnostic system) used for automotive electric system

diagnosis with network system, using DST-2 and DST-i, scan tools made

by Denso

Specific Initiatives to Strengthen the Industrial Platform


Launching network systems that visualize automotive

diagnostic results in alliance with scan tools made by Denso

Began

delivering

on June 19,

2013

• Directly selling tablet terminals of KDDI (au) equipped

with communication function

• Enhancing sales of CarpodTab, application for tablet terminals

� Began selling CarpodTab together with terminals equipped with a

communication function by registering as the secondary agent for

au terminal products

Diagnostic

results

Scan tool

Failure diagnosis

Began

handling

on July 8,

2013

� Promoting sales of OTRS, which has been introduced by some 200

companies since November 2009, earning high marks, through mutual

customer referral with JMAC

25

Began providing new services from CarpodTab, a tablet terminal

business support tool

�� Supporting quick services tailored to car owners

Cooperating in selling OTRS, a work analysis/ business optimization

system, through an alliance with JMC Consultants Inc. (JMAC)

� Began providing new services such as a light bodywork proposal service, BL parts

order system tablet edition, receipt, insurance simulation and business efficiency

support for auto parts dealers from CarpodTab, which has been highly valued since

its launch in July 2012


Screen sample of

OTRS

Specific Initiatives to Strengthen the Industrial Platform

Began

providing

in July and

August 2013

Concluded

an agreement

on July 1,

2013

ASEAN Countries

Thailand

China

Malaysia

Indonesia

Japan58.1

169.7

380.4

80.0

576

75.59 million

120.89 million

19.0million

10.74 million

11.5million

26Sources:

Car ownership rate: Automotive Yearbook

Number of cars owned: Automotive Yearbook;

National Bureau of Statistics of China, 2012

Internet penetration rate: ITU, Percentage of individuals using the Internet (excel)

00.0 million

Number of cars owned

Car ownership rate(vehicles/1,000 people) 000

123

The automotive aftermarket has

expanded due to the increase in

car ownership. The market size is

particularly large in China.

The recycled parts market is being

formed due to the increase in

demand for repairs that has

resulted from the spread of cars.

The Internet infrastructure,

which is the basis of our

services, is being developed.

38.3%

79.5%

18.0%

61.0%

23.7%

Internet penetration rate

00.0%

Vietnam

Myanmar

CCRC Menu Screen

(Chinese version of

recycled parts

registration system)


Overseas: Approach to Growth Markets

Cautionary Note


For inquiries, please contact

Planning Department (Investor Relations)

Broadleaf Co., Ltd.

E-mail: [email protected]

Forward-looking statements contained in this material such as results forecasts and future prospects are

forecasts and estimates made by Broadleaf based on information available at the time of the preparation

of the material, and are subject to potential risks and uncertainties. Please note that actual results may

differ from the statements contained in this material due to various factors.

Documents

Broadleaf Co., Ltd. (Securities Code: 3673 / TSE 1 st...2Q FY12/2013 Business Results Briefing Broadleaf Co., Ltd. (Securities Code: 3673 / TSE 1 st) August 8, 2013