Note) This translation may be used for reference purposes only. This English version is not an official translation of
the original Japanese document. In cases where any differences occur between the English version and the original
Japanese version, the Japanese version shall prevail.

Summary of Financial Statements for the 3rd Quarterof the Fiscal Year Ending December 31, 2016
[Japanese GAAP](Non-consolidated)
October 28, 2016

Broadleaf Co., Ltd.
Stock Listing:Stock Code:
URL:
Representative:
Scheduled Submission Date for Quarterly Report:
Scheduled Starting Date for Dividend Payment:
Earnings Supplementary Explanatory Documents:
Earnings Results Briefing:

Tokyo Stock Exchange 1st Section3673
http://www.broadleaf.co.jp/
Kenji Oyama, Representative Director, President & CEO
November 14, 2016
Yes
Yes (for institutional investors and financial analysts)(Amounts are rounded down to the nearest million yen.)

1. Financial Results for the 3rd Quarter of the FY2016 (from January 1, 2016 to September 30, 2016)(Percentage below represents increase (decrease) from the same period of previous year.)(1) Results of Operations
Net Sales
Operating Income
Ordinary Income
Net Income
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

11,983
12,116

-1.1
-11.8

1,085
1,270

-14.5
-56.7

1,084
1,249

-13.3
-56.9

659
559

17.9
-63.5

Q3 FY2016
Q3 FY2015

Earnings Per Share
Q3 FY2016
Q3 FY2015

Diluted Earnings Per Share
Yen

Yen

27.47
22.38

27.45
22.36

(2) Financial Position
Total Asset

Millions of Yen%

23,76725,565

18,376
19,38577.2
75.7

End of Q3 FY2016
End of FY2015(Reference) Shareholders’ Equity

Shareholders’ Equity Ratio

Net Asset

Millions of Yen

End of Q3 FY2016: 18,346 Million Yen

End of FY2015: 19,356 Million Yen

2. Dividends
End of Q1

Dividends Per Share
End of Q3

End of Q2

Year-end

Total

Yen

Yen

Yen

Yen

Yen

-

12.50
17.50

-

12.50

25.00

12.50

30.00

FY2015FY2016FY2016 (Forecast)(Note) Revisions to the latest forecast of dividends: No
Breakdown of Dividends Per Share at the End of Q2 FY2016 : Ordinary dividend 12.50 yen
Commemorative dividend 5.00 yen

3. Earnings Forecast for FY2016 (from January 1, 2016 to December 31, 2016)(Percentage below represents increase from the same period of previous year.)

Net Sales
FY2016

Operating Income

Millions of Yen%

18,000

7.0

Millions of Yen(Note) Revisions to the latest forecast of earnings: No%

3,000 19.3

Ordinary Income
Millions of Yen

Earnings
Per Share

Net Income%

Millions of Yen%

Yen

2,970 19.1

1,620

29.4

67.98

* Notes(1) Adoption of special accounting methods for preparation of quarterly financial statements: No(2) Changes in accounting policies, changes in accounting estimates and restatement of corrections
1. Changes in accounting policies in association with revision in accounting standards: No
2. Other changes in accounting policies: No
3. Changes in accounting estimates: No
4. Restatement of corrections: No(3) Number of shares outstanding (common stock)
1. Number of shares outstanding
Q3 FY2016(including treasury stock)(Shares)

24,474,200 FY2015

25,234,200
1,030,884

2. Number of shares of treasury stock

Q3 FY2016

1,176,184

FY2015

3. Average number of shares outstanding(during the period)

Q3 FY2016

24,008,630 Q3 FY2015

24,995,426* Indication of quarterly review procedure implementation status
This quarterly earnings report is not subject to quarterly review procedures based upon the Financial Instruments
and Exchange Act. Thus, at the time of disclosure of the financial results, the quarterly financial statement review
procedures based upon the Financial Instruments and Exchange Act have not been completed.
* 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 of what is described in the statements. Actual results may differ from these
forecasts due to various factors.

Broadleaf Co., Ltd. (3673)
Summary of Financial Statements for the 3rd Quarter of the FY2016 (Non-consolidated)

Table of Contents of Attached Material
1. Qualitative Information on Operating Results, etc. for the Nine Months Ended September 30, 2016 ••••••••••••• 2(1) Qualitative information on financial results •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 2(2) Qualitative information on financial position •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 3(3) Qualitative information on earnings forecast ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 3
2. Matters Related to Summary Information (Notes) •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 4(1) Application of specific accounting treatment to the preparation of quarterly financial statements •••••••••••••• 4(2) Changes in accounting principles and changes or restatements of accounting estimates ••••••••••••••••••••••••• 4
3. Financial Statements •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 5(1) Balance sheet •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 5(2) Statement of income •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 7(3) Notes to financial statements •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 8(Notes to going concern assumptions) •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 8(Notes on substantial changes in stockholders’equity) •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 8(Significant post-balance sheet events) •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 8
4. Supplementary Information •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 9- 1 -Broadleaf Co., Ltd. (3673)
Summary of Financial Statements for the 3rd Quarter of the FY2016 (Non-consolidated)

1. Qualitative Information on Operating Results, etc. for the Nine Months Ended September 30, 2016
(1) Qualitative information on financial results
In the first nine months of the fiscal year ending December 31, 2016, the outlook for the Japanese economy
remained uncertain due to factors such as the turbulence of the situation in the Middle East, concerns regarding
a slump in production and exports in China and other emerging economies in Asia and fear of the decelerationof the global economy due to Brexit, although there is evidence of an improvement in corporate earnings andemployment thanks to the economic and monetary policies of the government and the Bank of Japan.
In the information service industry, to which the Company belongs, IT investments by companies remained
firm, particularly those in manufacturing in addition the financial and public service sectors, but a cautious
view on the economy was observed in various industries because of the economic uncertainty. Overall, thebusiness climate remained generally solid because IT investments were expected to increase mainly in strategicareas such as big data, IoT, cloud, and security.
In this business environment, the Company is enhancing its measures to increase the number of customers of
its applications, such as the .NS Series and CarpodTab, a tablet-type business support tool, and working forthe industry standardization of BL Parts Order System, an electronic order service for auto parts, with the aimof expanding the customer base and changing the revenue structure. The Company is also promoting efforts
to provide higher value-added services for customers by successively renovating the industry-specificapplications the Company offers to customers, strengthening and enhancing automobile-related database,introducing an EC site for auto repair parts into the market, and developing automobile-related data analyticalservices.
As a result, net sales in the first nine months of the fiscal year under review decreased 1.1% year on year, to11,983 million yen. In terms of profits and losses, operating income was reduced by 14.5% year on year, to
1,085 million yen, and ordinary income fell by 13.3% year on year, to 1,084 million yen, due to the decline in
net sales. Net income stood at 659 million yen (up 17.9% year on year) as a result of posting compensation fordamage received as extraordinary income.
The Company has a single business segment, which consists of IT services. A breakdown of sales by businessdomain is shown in the table below.
(Unit: Millions of yen)
DomainBusiness Application

1st Nine Months, FY2016

1st Nine Months, FY2015(From Jan. 1 to(From Jan. 1 to

Sep. 30, 2016)

Sep. 30, 2015)

Year-on-year rateof change

7,613

8,035

-5.3%

System Support

924

944

-2.1%

Network Service

3,444

3,135

9.9%

Total

11,983

12,116-1.1%

Software- 2 -Broadleaf Co., Ltd. (3673)
Summary of Financial Statements for the 3rd Quarter of the FY2016 (Non-consolidated)(2) Qualitative information on financial position
Total assets at the end of the third quarter under review declined 1,798 million yen from the end of the previous
fiscal year, to 23,767 million yen. This decline was largely attributable to a decrease in accounts receivabletrade of 882 million yen, a decrease in goodwill of 501 million yen and a decrease in cash and deposits of 472
million yen.
Liabilities fell by 789 million yen from the end of the previous fiscal year, to 5,390 million yen. This wasachieved primarily by a reduction of 505 million yen in long-term loans payable and a decrease of 210 million
yen in accounts payable-other.
Net assets fell by 1,009 million yen from the end of the previous fiscal year, to 18,376 million yen. This waschiefly attributable to an increase of 974 million yen in treasury stock as a result of the acquisition of treasury
stock based on the trust contracts for a board benefit trust (BBT) and an employee stock ownership plan (JESOP) and decreases in retained earnings and treasury stock of 961 million yen, each due to the cancellationof treasury stock.
(3) Qualitative information on earnings forecast
The results forecasts for the fiscal year ending December 31, 2016 announced on February 10, 2016 have notbeen changed.

- 3 -Broadleaf Co., Ltd. (3673)
Summary of Financial Statements for the 3rd Quarter of the FY2016 (Non-consolidated)

2. Matters Related to Summary Information (Notes)(1) Application of specific accounting treatment to the preparation of quarterly financial statements
Not applicable(2) Changes in accounting principles and changes or restatements of accounting estimates
Not applicable- 4 -Broadleaf Co., Ltd. (3673)
Summary of Financial Statements for the 3rd Quarter of the FY2016 (Non-consolidated)

1. Financial Statements(1) Balance sheet(Unit: Thousands of Yen)

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
MerchandiseWork in process
Supplies
Prepaid expenses
Deferred tax assets
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
SoftwareTotal intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Investments in capital of subsidiaries andassociates
Long-term loans receivable from subsidiaries
and associates
Long-term loans receivable from employees
Claims provable in bankruptcy, claims
provable in rehabilitation and other
Long-term prepaid expenses
Lease and guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 5 -FY2015(As of Dec. 31, 2015)

Q3 FY2016(As of Sep. 30, 2016)

8,384,656
68,9812,660,888
215,153
4,509
12,821
166,386
201,544
1,289,046
34,054-4,75813,033,282

7,911,679
51,7491,778,794
100,677
4,960
9,274
212,980
161,551
1,340,628
41,791-3,364
11,610,721

457,944421,587

9,362,268
1,246,711
10,608,979

8,860,718
1,270,124
10,130,843

644,322
203,859

728,376
203,859

163,625

223,525

60,00060,000-5,204

13,712

9,942

23,090365,272
5,560-13,712
1,465,730
12,532,655
25,565,938

21,612352,018
3,845
5,560-9,942
1,604,003
12,156,434
23,767,156

Broadleaf Co., Ltd. (3673)
Summary of Financial Statements for the 3rd Quarter of the FY2016 (Non-consolidated)(Unit: Thousands of Yen)

Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term loans payable
Lease obligations
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Provision for bonuses
Provision for compensation for damage
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Asset retirement obligations
Deferred tax liabilities
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Total valuation and translation adjustments
Subscription rights to shares
Total net assets
Total liabilities and net assets- 6 -FY2015(As of Dec. 31, 2015)

Q3 FY2016(As of Sep. 30, 2016)

480,270624,000
32,6412,396,358
169,794
118,444
67,38830,24474,681
278,406
34,612
31,201
4,338,044

298,261
624,000
28,1102,185,792
162,488
183,746
67,74561,226140,896
271,104
25,591
31,201
4,080,164

1,675,160
51,126
112,041
3,603
1,841,931
6,179,976

1,169,200
31,192110,081
1,310,473
5,390,638

7,147,905
7,147,905
6,362,772-1,322,701
19,335,880

7,147,905
7,147,905
5,332,647-1,294,561
18,333,895

20,48913,03020,48929,592
19,385,961
25,565,938

13,03029,592
18,376,517
23,767,156

Broadleaf Co., Ltd. (3673)
Summary of Financial Statements for the 3rd Quarter of the FY2016 (Non-consolidated)(2) Statement of income(Unit: Thousands of Yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Compensation income
Gain on investments in partnership
Other
Total non-operating income
Non-operating expenses
Interest expenses
Provision for loss compensation
Commission fee
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Damages received
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on valuation of investment securities
Total extraordinary loss
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income- 7 -3rd Quarter of FY2015(From Jan. 1, 2015
to Sep. 30, 2015)

3rd Quarter of FY2016(From Jan. 1, 2016
to Sep. 30, 2016)

12,116,488
3,570,431
8,546,056
7,275,899
1,270,157

11,983,220
3,714,793
8,268,426
7,183,044
1,085,381

1,809
3,787
12,766
2,064
9,999
30,428

953
3,819
3,748
13,456
21,9786,995
22,35417,0004,481
50,831
1,249,753

8,030
8,179
2,000
5,040
23,2491,084,110

6,430
6,430

250,925
250,925228
16,39016,6181,239,564
453,235
226,998
680,234
559,330

2,033
2,033
1,333,002
636,723
36,855673,578
659,423

Broadleaf Co., Ltd. (3673)
Summary of Financial Statements for the 3rd Quarter of the FY2016 (Non-consolidated)(3) Notes on financial statements(Notes on going concern assumptions)Not applicable.
(Notes on substantial changes in stockholders’ equity)
During the first nine months of the fiscal year ending December 31, 2016, treasury stock increased 974,167
thousand yen as a result of treasury stock acquisitions of 354,300 shares based on a trust contract for a board
benefit trust (BBT) and 577,700 shares based on a trust contract for an employee stock ownership plan (JESOP). In addition, the Company resolved at the meeting of the Board of Directors held on February 10, 2016
to cancel treasury stock, and canceled 760,000 shares of common stock as of March 2, 2016. As a result,treasury stock and retained earnings decreased 961,400 thousand yen each during the first nine months of the
fiscal year under review.
The amount of treasury stock at the end of the first nine months of the fiscal year ending December 31, 2016
was 1,294,561 thousand yen as a result of the said acquisition, cancellation, etc. of treasury stock.
(Significant post-balance sheet events)(Acquisition of treasury stock)
The Company resolved at the meeting of the Board of Directors held on October 28, 2016 to repurchasetreasury stock pursuant to the provisions of Article 459, paragraph 1 of the Companies Act and Article 41 of
its articles of incorporation.
1. Reasons for repurchase of treasury stock: To return profits to shareholders and improve capital efficiency
2. Type of shares to be acquired: Shares of common stock
3. Number of shares to be acquired: Up to 1,350,000 shares
4. Total amount of acquisition: Up to 1.5 billion yen
5. Period of acquisition: From November 1, 2016 to January 31, 2017
6. Method of acquisition: Discretionary investment management agreement provided by securities firms- 8 -Broadleaf Co., Ltd. (3673)
Summary of Financial Statements for the 3rd Quarter of the FY2016 (Non-consolidated)

2. Supplementary Information
Current Fiscal Year (From January 1, 2016 to December 31, 2016)(Unit: Millions of Yen)

Fiscal Year Ending December 31, 2016
1st ninemonthsNet Sales

Ratio toNet Sales

YoY rateof change

Progressrate

Full-year
forecast

11,983100.0%

-1.1%

66.6%

18,000

7,613

63.5%

-5.3%

65.1%

11,700

System Support

924

7.7%

-2.1%

74.0%

1,250

Network Service

3,444

28.7%

9.9%

68.2%

5,050

Operating Income

1,085

9.1%

-14.5%

36.2%

3,000

659

5.5%

17.9%

40.7%

1,620

Business Application Software

Net Income

Previous Fiscal Year (From January 1, 2015 to December 31, 2015)(Unit: Millions of Yen)

Fiscal Year Ended December 31, 2015
1st ninemonthsNet Sales

Ratio toNet Sales

YoY rateof change

Progressrate

Full-year
result12,116100.0%-11.8%

72.0%

16,824

8,035

66.3%

-19.3%

71.0%

11,316

System Support

944

7.8%

-2.5%

74.6%

1,266

Network Service

3,135

25.9%

11.7%

73.9%

4,242

Operating Income

1,270

10.5%

-56.7%

50.5%

2,514

559

4.6%

-63.5%

44.7%

1,251

Business Application Software

Net Income- 9 -