Summary of Financial Statements for the Nine Months of the
Fiscal Year Ending December 31, 2017 [IFRS] (Consolidated)
November 10, 2017
Broadleaf Co., Ltd.
Stock Listing: Tokyo Stock Exchange 1st Section
Representative: Kenji Oyama, Representative Director, President & CEO
Contact:
Kenichi Yamanaka, Director, Executive Vice President & COO
Tel. +81-3-5781-3100
Scheduled Submission Date for Quarterly Report:
November 14, 2017
Scheduled Starting Date for Dividend Payment:–
Earnings Supplementary Explanatory Documents:
Yes
Earnings Results Briefing:
Yes (For institutional investors and analysts)(Amounts are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Nine Months of the FY2017 (from January 1, 2017 to September 30, 2017)(1) Consolidated Results of Operations(Percentage below represents increase (decrease) from the same period of previous year)
Revenue

Operating profit

Millions of Yen

Q3 FY2017
Q3 FY2016% Millions of Yen

12,487
11,926

4.7–

Q3 FY2017% Millions of Yen

1,819
1,731

Basic earnings per share

Profit before tax

5.1
–

1,804
1,705

Profit attributable toowners of parent

Profit% Millions of Yen

5.8
–

%

Millions of
Yen

%

5.2
–

1,195
1,043

14.6
–

% Millions of Yen

1,159
1,101

5.2
–

1,159
1,101

Total comprehensive
incomeDiluted earnings per share
Yen

Yen

26.16
22.94

26.14
22.93

Q3 FY2016(Note) The Company conducted a 2-for-1 common stock split effective December 17, 2016. The basic earnings per share and the diluted earnings per share arecalculated on the assumption that the said stock split was implemented at the beginning of the previous fiscal year.

(2) Consolidated Financial Position
Total assets

Equity attributable to owners ofparentTotal equity

Percentage of equity attributableto owners of parent

Millions of Yen

Millions of Yen%

Yen

26,50925,32218,80619,15918,80619,15970.9
75.7

End of Q3 FY2017
End of FY2016

2. Dividends
End of Q1

Dividends Per Share
End of Q3

End of Q2

Year-end

Total

Yen

Yen

Yen

Yen

Yen

‒
‒

17.50
11.00

‒
‒

12.50

30.00

FY2016FY2017FY2017 (Forecast)
11.00
22.00
(Note) Revisions to the latest forecast of dividends: No
Breakdown of dividends for the end of Q2 FY2016: Ordinary dividend 12.50 yen Commemorative dividend 5.00 yen
The Company conducted a 2-for-1 common stock split effective December 17, 2016. The dividends for the period to the end of Q2 of FY2016 are actual
dividends before the stock split.

3. Earnings Forecast for FY2017 (from January 1, 2017 to December 31, 2017)(Percentages below represent increases (decreases) from the same period of the previous fiscal year.)
Revenue
Millions of Yen

Operating profit

Profit attributable toowners of parent

Profit before tax

Basic earnings per
share

%

Millions of Yen%

Millions of Yen%

Millions of Yen%

Yen

FY2017
17,8006.2(Note) Revisions to the latest forecast of earnings: No

2,100

-28.9

2,050

-29.8

1,240

-33.9

28.00

-1-

* Notes(1) Changes in significant subsidiaries during the nine months ended September 30, 2017 (changes of specified subsidiaries withchange of the scope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates
1. Changes in accounting policies required by IFRS: No
2. Other changes in accounting policies: No
3. Changes in accounting estimates: No(3) Number of shares outstanding (common stock)
1. Number of shares outstanding (including
treasury stock)

Q3 FY2017

48,948,400

FY201648,948,400

2. Number of shares of treasury stock

Q3 FY2017

4,691,968

FY2016

3,939,268

3. Average number of shares outstanding
44,293,058
48,017,260
Q3 FY2017
Q3 FY2016(during the period)(Note) The Company conducted a 2-for-1 stock split effective December 17, 2016. The number of shares outstanding (common
stock) is calculated on the assumption that the stock split was implemented at the beginning of the previous fiscal year.
* The quarterly earnings report is not subject to quarterly review.
* Comment regarding appropriate usage of earnings forecast, and other special notes(Note on forward-looking statements)
The forward-looking statements such as earnings forecasts contained in this document are based on the information currently available
to the Company and certain assumptions which are regarded as legitimate. The Company makes no warranty as to the achievability ofwhat is described in the statements. Actual results may differ from these forecasts due to various factors.
(Availability of earnings supplementary explanatory documents and information on earnings results briefings)
The Company will hold a results briefing for institutional investors and analysts on Friday, November 10, 2017. A document to be usedin the briefing will be posted on the website.

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○Table of Contents of Attached Material
1. Qualitative Information on Operating Results, etc. for the Nine Months Ended September 30, 2017 ....................................
(1) Qualitative information on financial results .......................................................................................................................
(2) Qualitative information on financial position ....................................................................................................................
(3) Qualitative information on consolidated earnings forecast ................................................................................................

4
4
4
5

2. Summary Consolidated Financial Statements and Major Notes ..............................................................................................
(1) Summary consolidated statement of financial position ......................................................................................................
(2) Summary consolidated statement of income ......................................................................................................................
(3) Summary consolidated statement of comprehensive income .............................................................................................
(4) Summary consolidated statement of changes in equity ......................................................................................................
(5) Summary consolidated statement of cash flow ..................................................................................................................
(6) Notes regarding the summary consolidated financial statements .......................................................................................
(Notes on going concern assumption)................................................................................................................................
(Segment information) .......................................................................................................................................................

6
6
7
8
9
11
12
12
12

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1. Qualitative Information on Operating Results, etc. for the Nine Months Ended September 30, 2017
(1) Qualitative information on financial results
During the first nine months of the fiscal year ending December 31, 2017, the Japanese economy remained on a moderate
recovery trend partly backed by improved corporate earnings and employment and income situations. However, attention shouldbe paid to the risk of overseas economies, including the effects of the political situation in the United States and Europe andtrends in financial and capital markets, putting downward pressure on the Japanese economy.
In the information service industry, to which the Group belongs, investments are expected to increase in strategic areas such as
cloud services, big data analysis, cyber security measures and expansion into IoT, in addition to the existing types of IT spending
for the purposes of improving productivity and efficiency. Meanwhile, there are signs of a recovery in capital investment among
companies. On the other hand, the entire industry faces the issue of securing excellent engineers who can adapt to the latest
technologies and early development and offering of high value-added services.
In this environment, the Company launched the sale of the .NS2, a new model added to the .NS Series of its industry-specificapplications, with the aim of expanding the customer base and changing the revenue structure. The Company also worked toincrease the number of customers for the CarpodTab, a tablet-type business support tool, and continued to take action for theindustry standardization of the BL Parts Order System, an electronic order service for auto parts. Along with these initiatives,
the Company stepped up its efforts to provide higher value-added services for customers by successively revamping the industryspecific applications that the Company offers to customers, strengthening its automobile-related database, and developing
automotive data analytical services. During the third quarter of the fiscal year under review, the Company acquired shares inTajima Inc., which had been a competitor in systems and other products for auto maintenance businesses, and made it aconsolidated subsidiary.
As a result, revenue in the first nine months of the fiscal year under review increased 4.7% year on year, to 12,487 million yen.
In terms of profits and losses, operating profit increased by 5.1% year on year, to 1,819 million yen, profit before tax rose by
5.8% year on year, to 1,804 million yen, and profit attributable to owners of parent grew 5.2% year on year, to 1,159 million yen,
thanks primarily to the higher revenue.
The Company has a single business segment, which consists of IT services. A breakdown of sales by business domain is shownin the table below.
(Unit: Millions of yen)
1st Nine Months of FY2016(From January 1 to
September 30, 2016)

1st Nine Months of FY2017(From January 1 to
September 30, 2017)

Year-on-year rate of change

7,564

7,783

2.9%

System Support

924

926

0.2%

Network Service

3,438

3,779

9.9%

Total

11,926

12,487

4.7%

DomainBusiness Application
Software(2) Qualitative information on financial position(i) Analysis of financial position(Assets)
Total assets at the end of the third quarter of the consolidated fiscal year under review increased 1,187 million yen from the endof the previous consolidated fiscal year, to 26,509 million yen. Current assets fell 2,229 million yen, to 10,075 million yen, andnon-current assets increased 3,416 million yen, to 16,434 million yen. The decrease in current assets was mainly attributable toa decrease in cash and cash equivalents of 2,748 million yen. The increase in non-current assets was caused chiefly by growth ingoodwill of 2,471 million yen.
(Liabilities)
Liabilities rose by 1,541 million yen from the end of the previous consolidated fiscal year, to 7,703 million yen. Current liabilities
grew 1,776 million yen, to 6,756 million yen, and non-current liabilities decreased by 235 million yen, to 947 million yen. The
main factor contributing to the increase in current liabilities was growth in operating and other payables of 2,135 million yen,which more than offset a reduction in income taxes payable of 490 million yen. The decrease in non-current liabilities was largelya result of a decrease in long-term interest-bearing debt of 481 million yen.
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(Equity)
Equity was reduced by 354 million yen from the end of the previous consolidated fiscal year, to 18,806 million yen. The decrease
was chiefly attributable to an increase in treasury shares of 496 million yen.
(ii) Analysis of cash flows
Cash and cash equivalents (“cash”) at the end of the third quarter of the consolidated fiscal year under review declined 2,748
million yen from the end of the previous consolidated fiscal year, to 4,990 million yen.
The following is a description of the situation and major factors of each category of cash flows in the nine months ended
September 30, 2017.
(Net cash from (used in) operating activities)
Cash flows provided by operating activities stood at 1,074 million yen, mainly reflecting a profit before tax of 1,804 million yen
and depreciation and amortization expense of 478 million yen, which is partially offset by income taxes paid of 1,134 million
yen.
(Net cash from (used in) investing activities)
Cash flows used in investing activities came to 1,723 million yen. The primary causes of this included an acquisition of intangible
assets of 864 million yen and a payment of 865 million yen for a purchase of shares of subsidiaries resulting in a change in thescope of consolidation.
(Net cash from (used in) financing activities)
Cash flows used in financing activities were 2,095 million yen, chiefly attributable to cash dividends paid of 1,049 million yen,
the purchase of treasury shares of 530 million yen, and repayments of long-term loans payable of 512 million yen.
(3) Qualitative information on consolidated earnings forecast
There have been no changes made to the consolidated results forecast announced on August 4, 2017 for the fiscal year ending
December 31, 2017.

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2. Summary Consolidated Financial Statements and Major Notes(1) Summary consolidated statement of financial position(Unit: Thousands of Yen)FY2016(As of Dec. 31, 2016)
AssetsCurrent assets
Cash and cash equivalents
Operating and other receivables
Inventories
Other current financial assets
Other current assets
Total current assets

Q3 FY2017(As of September 30, 2017)

7,738,206
4,199,180
109,866417
256,566
12,304,234

4,989,891
4,493,498
219,043–
372,855
10,075,288

426,750
10,031,002
1,142,446
70,896
1,148,794
26,024
171,824
13,017,736
25,321,970

442,908
12,502,286
1,656,783
59,816
1,285,290
17,575468,976
16,433,632
26,508,920

Liabilities and Equity
Liabilities
Current liabilities
Operating and other payables
Short-term interest-bearing debt
Income taxes payable
Other current financial liabilities
Other current liabilities
Total current liabilities

3,140,345
655,086
601,139
85,072
498,475
4,980,118

5,275,462
676,594
110,841
158,684
534,3036,755,884

Non-current liabilities
Long-term interest-bearing debt
Non-current provisions
Other non-current liabilities
Total non-current liabilities
Total liabilities

1,072,366
110,300–
1,182,666
6,162,784

591,244
129,325
226,900
947,469
7,703,353

EquityCapital stock
Share premium
Treasury shares
Retained earnings
Other components of equity
Total equity attributable to owners of parent
Total equity
Total liabilities and equity

7,147,905
7,114,654-2,252,885
7,136,345
13,167
19,159,187
19,159,187
25,321,970

7,147,905
7,112,741-2,749,316
7,242,851
51,38618,805,567
18,805,567
26,508,920

Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Investments accounted for using equity method
Other non-current financial assets
Other non-current assets
Deferred tax assets
Total non-current assets
Total assets-6-

(2) Summary consolidated statement of income(Unit: Thousands of Yen)
1st Nine Months of FY2016(From January 1, 2016
to September 30, 2016)

1st Nine Months of FY2017(From January 1, 2017
to September 30, 2017)

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Other operating income
Other operating expense
Operating profit
Finance income
Finance cost
Equity in loss of affiliates
Profit before tax
Income tax
Profit11,925,523-3,710,156
8,215,368-6,729,315
259,059-13,875
1,731,236
5,062-28,225-2,734
1,705,340-603,931
1,101,409

12,487,242-3,332,099
9,155,143-7,344,798
11,986-3,544
1,818,787
13,133-16,793-11,077
1,804,049-645,524
1,158,526

Profit attributable to owners of parent

1,101,409

1,158,526

22.94
22.93

26.16
26.14

Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)-7-(3) Summary consolidated statement of comprehensive income(Unit: Thousands of Yen)
1st Nine Months of FY2016(From January 1, 2016
to September 30, 2016)
ProfitOther comprehensive income
Components that will not be reclassified to profit or loss
Net change in fair value of financial assets of equity
nature measured at fair value through othercomprehensive income
Total components that will not be reclassified to
profit or loss
Components that may be reclassified to profit or loss
Exchange differences on translation of foreign
operations
Share of other comprehensive income of associates
accounted for using equity method
Total components that may be reclassified to profit
or loss
Total other comprehensive income, net of tax
Comprehensive income
Comprehensive income attributable to owners of parent-8-

1st Nine Months of FY2017(From January 1, 2017
to September 30, 2017)

1,101,409

1,158,526-3,40541,386-3,40541,386-36,053-10,377-19,335

5,247-55,388-5,130-58,79336,257

1,042,616

1,194,783

1,042,616

1,194,783

(4) Summary consolidated statement of changes in equity
1st Nine Months of FY2016 (From January 1, 2016 to September 30, 2016)(Unit: Thousands of Yen)
Equity attributable to owners of parent
Note

Balance as of January 1, 2016

Capital stock

Share premium

Treasury shares

Retained earnings

7,147,905

7,128,960-1,330,018

6,941,080

Profit–––1,101,409

Other comprehensive
income––––Total comprehensive income

–

–

–

1,101,409

Purchase of treasury shares––-974,168–

Disposal of treasury shares–-11,100

40,908–Cancellation of treasury
shares–-967,177

967,177–

Dividend–––-720,179

Reclassification from sharepremium to retained
earnings–

967,177–-967,177

Total transactions with owners–-11,100

33,917-1,687,356

7,147,905

7,117,860-1,296,102

6,355,133

Balance as of September 30,
2016(Unit: Thousands of Yen)
Equity attributable to owners of parent
Other components of equity
Net change in fairvalue of financial
Exchange
assets of equity
differences on nature measured attranslation offair value throughforeign operations
othercomprehensive
incomeNote
Warrants

Total equity

Total

Total

29,592-11,171

8,326

26,74819,914,674

19,914,674

Profit––––1,101,409

1,101,409

Other comprehensive
income–-55,388-3,405-58,793-58,793-58,793

Total comprehensive income–-55,388-3,405-58,793

1,042,616

1,042,616

Purchase of treasury shares

–

–

–

–

-974,168-974,168

Disposal of treasury shares

–

–

–

–

29,80829,808Cancellation of treasury
shares

–

–

–

–

–

–

Dividend

–

–

–

–

-720,179-720,179

Reclassification from sharepremium to retained
earnings

–

–

–

–

–

–

Total transactions with owners

–

–

–

–

-1,664,539-1,664,539

29,592-66,559

4,921-32,045

19,292,751

19,292,751

Balance as of January 1, 2016

Balance as of September 30,
2016

-9-

1st Nine Months of FY2017 (From January 1, 2017 to September 30, 2017)(Unit: Thousands of Yen)
Equity attributable to owners of parent
Note

Balance as of January 1, 2017

Capital stock

Share premium

Treasury shares

Retained earnings

7,147,905

7,114,654-2,252,885

7,136,345

Profit–––1,158,526

Other comprehensive
income––––Total comprehensive income

–

–

–

1,158,526

Purchase of treasury shares––-530,475–

Disposal of treasury shares–-2,66334,044–

Dividends–––-1,049,308

Reclassification from sharepremium to retained
earnings

–

750

–

-750

Reclassification from othercomponents of equity toretained earnings

–

–

–

-2,196

Other increases (decreases)

–

–

–

234

Total transactions with owners–-1,913-496,431-1,052,021

7,147,905

7,112,741-2,749,316

7,242,851

Balance as of September 30,
2017(Unit: Thousands of Yen)
Equity attributable to owners of parent
Other components of equity
Net change in fairvalue of financial
Exchange
assets of equity
differences on nature measured attranslation offair value throughforeign operations
othercomprehensive
incomeNote
Warrants

Balance as of January 1, 2017

Total equity

Total

Total

7,383

-37,586

43,37013,167

19,159,187

19,159,187

Profit––––1,158,526

1,158,526

Other comprehensive
income–-5,13041,38636,25736,25736,257

Total comprehensive income–-5,13041,38636,257

1,194,783

1,194,783

Purchase of treasury shares

–

–

–

–

-530,475-530,475

Disposal of treasury shares

–

–

–

–

31,381

31,381Dividends

–

–

–

–

-1,049,308-1,049,308

Reclassification from sharepremium to retained
earnings

–

–

–

–

–

–

Reclassification from othercomponents of equity toretained earnings

–

–

2,196

2,196

–

–

Other increases (decreases)

-234

–

–

-234

–

–

Total transactions with owners

-234

–

2,196

1,962

-1,548,402-1,548,402

Balance as of September 30,
2017

7,149

-42,716

86,95351,38618,805,567

18,805,567- 10 -

(5) Summary consolidated statement of cash flow
(Unit: Thousands of Yen)
1st Nine Months of FY2016(From January 1, 2016
to September 30, 2016)
Cash flows from operating activities
Profit before tax
Depreciation and amortization expense
Compensation for damage received
Finance income and costs
Equity in loss (earnings) of affiliates
Loss (gain) on sales of property, plant and equipment
and intangible assets
Decrease (increase) in operating and other receivables
Decrease (increase) in inventories
Increase (decrease) in operating and other payables
Increase (decrease) in employees' bonuses payable
Increase (decrease) in consumption taxes payable
Other, net
SubtotalInterest received
Dividends received
Interest expenses paid
Compensation for damage received
Income taxes paid
Cash flows from (used in) operating activities
Cash flows from investing activities
Acquisition of property, plant and equipment
Proceeds from sales of property, plant and equipment
Acquisition of intangible assets
Acquisition of investments
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Acquisition of investments accounted for using equity
methodOther, net
Cash flows from (used in) investing activities
Cash flows from financing activities
Repayments of long-term loans payable
Repayments of lease obligations
Cash dividends paid
Purchase of treasury shares
Proceeds from sales of treasury shares
Other, net
Cash flows from (used in) financing activities
Impact of exchange fluctuations for cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Balance of cash and cash equivalents at the end of thequarter- 11 -

1st Nine Months of FY2017(From January 1, 2017
to September 30, 2017)

1,705,340
461,135-250,925
23,163
2,734

1,804,049
477,806–
3,660
11,077–

1,467

842,610116,114-375,586-7,303
742,2212,559,510
1,243
3,819
-8,795250,925-537,148
2,269,554

127,841-28,443-319,738
111,535-40,61263,5602,212,203
1,156
1,549
-6,173–-1,134,407
1,074,329-31,354–-416,521-99,856-41,553
50,407-863,949-15,000–-865,414-5,838-11,670

18,65034,323-87,500–-8,486-630,904-10,010-1,722,866-505,960-24,465-720,179-974,168
29,808-3,253-2,198,217-511,850-31,338-1,049,308-530,475
31,381-3,247-2,094,837-33,063-4,940-592,630
8,628,510-2,748,314
7,738,206

8,035,880

4,989,891

(6) Notes regarding the summary consolidated financial statements(Notes on going concern assumption)
Not applicable.
(Segment information)
Since the Group has only a single business segment (IT services), the statement is omitted.

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