Summary of Financial Statements for the First Halfof Fiscal Year Ending December 31, 2017 [IFRS] (Consolidated)
August 4, 2018
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:
August 10, 2017
Scheduled Starting Date for Dividend Payment:
September 19, 2017
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 1st Half of the FY2017 (from January 1, 2017 to June 30, 2017)(1) Consolidated Results of Operations(Percentage below represents increase (decrease) from the same period of previous year)
Revenue
Millions of Yen

Q2 FY2017
Q2 FY2016

Operating profit% Millions of Yen

7,926 -2.9
8,164

906
1,432

-36.3
-

Basic earnings per share

Profit attributable toowners of parent

Profit% Millions of Yen

918
1,442

Q2 FY2017

Profit before tax% Millions of Yen

559
927

-36.7
-

% Millions of Yen% Millions of Yen

559 -39.7
927

-39.7
-

Total comprehensive
income%556 -33.3–
833

Diluted earnings per share
Yen

Yen

12.62
19.17

12.62
19.16

Q2 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

Millions of Yen%

24,28525,322

18,644
19,15918,644
19,15976.8
75.7

End of Q2 FY2017
End of FY2016

2. Dividends
End of Q1

Dividends Per Share
End of Q3

End of Q2
Yen

Yen

Year-end

Yen

Total
Yen

Yen

FY2016
‒
17.50
‒
12.50
30.00
FY2017‒11.00
FY2017 (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%

FY2017
6.2
17,800(Note) Revisions to the latest forecast of earnings: Yes

Profit attributable toowners of parent

Profit before tax

Basic earnings per
share

Millions of Yen%

Millions of Yen%

Millions of Yen

%

Yen

2,100

-28.9

2,050

-29.8

1,240

-33.9

28.00

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* Notes(1) Changes in significant subsidiaries during the three months ended March 31, 2017 (changes of specified subsidiaries with changeof 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)

Q2 FY2017

48,948,400

FY201648,948,400

2. Number of shares of treasury stock

Q2 FY2017

4,703,468

FY2016

3,939,268

3. Average number of shares outstanding
44,315,295
48,365,666
Q2 FY2017
Q2 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 Monday, August 7, 2017. A document to be used in
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 Six Months Ended June 30, 2017.................................................
(1) Qualitative information on financial results .......................................................................................................................
(2) Qualitative information on financial position ....................................................................................................................
(3) Qualitative Information on consolidated earnings forecast ................................................................................................

2
2
2
3

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) .......................................................................................................................................................
(Significant post-balance sheet events) ..............................................................................................................................

4
4
5
6
7
9
10
10
10
10

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1. Qualitative Information on Operating Results, etc. for the Six Months Ended June 30, 2017
(1) Qualitative information on financial results
During the first six 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 should be paid
to the risk of overseas economies, including the effects of the political situation in the United States and Europe and trends infinancial 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 is bolstering its measures to increase the number of customers of its industry-specificapplications, such as the .NS Series and CarpodTab, a tablet-type business support tool, with the aim of expanding the customer
base and changing the revenue structure. The Company is also taking action for the industry standardization of BL Parts Order
System, an electronic order service for auto parts, and for strengthening the operation of Buhin MAX, the e-commerce site forauto repair parts. Along with these initiatives, the Company is stepping up efforts to provide higher value-added services forcustomers by successively revamping the industry-specific applications the Company offers to customers, strengthening its
automobile-related database and developing automotive data analytical services.
As a result, in the first six months of the fiscal year under review, the Company posted revenue of 7,926 million yen (down 2.9%
year on year). In terms of profits and losses, the Company recorded an operating profit of 918 million yen (down 36.3% year onyear), a profit before tax of 906 million yen (down 36.7% year on year) and a profit attributable to owners of parent of 559
million yen (down 39.7% year on year), mainly due to a decrease in revenue, an increase in selling, general and administrative
expenses, and a decrease in other operating income.
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 Half, FY2016

1st Half, FY2017(From Jan. 1 to June 30,
2016)(From Jan. 1 to June 30,
2017)Year-on-year rate of change

5,266

4,889

-7.1%

System Support

633

612

-3.3%

Network Service

2,265

2,425

7.1%

Total

8,164

7,926

-2.9%

DomainBusiness Application
Software(2) Qualitative information on financial position(i) Analysis of financial position(Assets)
Assets at the end of the second quarter of the consolidated fiscal year under review declined 1,037 million yen from the end of
the previous consolidated fiscal year, to 24,285 million yen. Current assets fell 1,174 million yen, to 11,130 million yen, andnon-current assets increased 137 million yen, to 13,155 million yen. The decrease in current assets was mainly attributable to adecrease in cash and cash equivalents of 1,331 million yen, despite an increase in operating and other receivables of 145 million
yen.
(Liabilities)
Liabilities fell by 522 million yen from the end of the previous consolidated fiscal year, to 5,641 million yen. Current liabilities
fell 194 million yen, to 4,786 million yen, and non-current liabilities decreased by 328 million yen, to 855 million yen. The main
factors for the fall in current liabilities were decreases in operating and other payables of 89 million yen and income taxes payableof 253 million yen. The decrease in non-current liabilities was mainly attributable to a decrease in long-term interest-bearing
debt of 342 million yen.

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(Equity)
Equity declined 515 million yen from the end of the previous consolidated fiscal year, to 18,644 million yen. The decrease waschiefly attributable to an increase in treasury shares of 505 million yen.
(ii) Analysis of cash flows
Cash and cash equivalents (“cash”) at the end of the second quarter of the consolidated fiscal year under review declined 1,331
million yen from the end of the previous consolidated fiscal year, to 6,407 million yen.
The following is a description of the situation and major factors of each category of cash flows in the six months ended June 30,
2017.
(Net cash from (used in) operating activities)
Cash flows provided by operating activities stood at 562 million yen, mainly reflecting a profit before tax of 906 million yen anddepreciation and amortization expense of 327 million yen, which is partially offset by income taxes paid of 600 million yen.
(Net cash from (used in) investing activities)
Cash flows used in investing activities came to 464 million yen, mainly due to the acquisition of intangible assets of 435 million
yen.
(Net cash from (used in) financing activities)
Cash flows used in financing activities were 1,424 million yen, chiefly attributable to cash dividends paid of 563 million yen,
the purchase of treasury shares of 530 million yen, and repayments of long-term loans payable of 333 million yen.
(3) Qualitative Information on consolidated earnings forecast
Please refer to the Notice of Revisions to (Full-Year) Consolidated Results Forecasts announced on August 4, 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

Q2 FY2017(As of June 30, 2017)

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

6,407,379
4,343,970
110,02121
268,407
11,129,798

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

384,879
10,031,002
1,301,070
64,343
1,186,542
16,538170,827
13,155,202
24,285,000

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

3,051,414
649,344
347,979
88,792
648,435
4,785,964

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

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

730,725
124,360
855,085
5,641,048

EquityCapital stock
Share premium
Treasury shares
Retained earnings
Other components of equity
Total equity attributable to owners of parent
Non-controlling interests
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
7,112,431-2,758,126
7,130,138
11,60318,643,951–
18,643,951
24,285,000

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-4-(2) Summary consolidated statement of income(Unit: Thousands of Yen)
1st Half, FY2016(From Jan. 1, 2016
to June 30, 2016)
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
Profit

1st Half, FY2017(From Jan. 1, 2017
to June 30, 2017)

8,163,952-2,471,797
5,692,156-4,494,624
258,103-13,404
1,442,230
4,873-13,827-1,597
1,431,679-504,501
927,178

7,926,346-2,105,441
5,820,904-4,906,680
7,121-3,001
918,344
5,718-11,000-7,247905,815-346,462
559,353

Profit attributable to owners of parent

927,178

559,353

Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)

19.17
19.16

12.62
12.62

-5-

(3) Summary consolidated statement of comprehensive income(Unit: Thousands of Yen)
1st Half, FY2016(From Jan. 1, 2016
to June 30, 2016)

1st Half, FY2017(From Jan. 1, 2017
to June 30, 2017)

Profit927,178

559,353

Other 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

-54,628-275-54,628-275-26,590-9,055-13,133

5,569-39,723-3,486-94,351-3,761

832,827555,593

832,827555,593

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-6-

(4) Summary consolidated statement of changes in equity
1st Half, FY2016 (From Jan. 1, 2016 to June 30, 2016)(Unit: Thousands of Yen)
Equity attributable to owners of parent
Note

Capital stock

Share premium

Treasury shares

Retained earnings

7,147,905

7,128,960-1,330,018

6,941,080

Profit–––927,178

Other comprehensive
income––––Total comprehensive income

–

–

–

927,178

Purchase of treasury shares––-364,680–

Disposal of treasury shares–-6,09524,514–

Cancellation of treasury
shares–-967,177

967,177–

Dividend–––-302,541

Reclassification from sharepremium to retained
earnings–

967,177–-967,177

Balance as of January 1, 2016–

-6,095627,011-1,269,718

7,147,905

7,122,865-703,008

6,598,540

Total transactions with owners
Balance as of June 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––––927,178

927,178

Other comprehensive
income–-39,723-54,628-94,351-94,351-94,351

Total comprehensive income–-39,723-54,628-94,351

832,827

832,827

Purchase of treasury shares

–

–

–

–

Disposal of treasury shares

–

–

–

–

-364,680
18,419-364,680
18,419Cancellation of treasury
shares

–

–

–

–

–

–

Dividend

–

–

–

–

-302,541-302,541

Reclassification from sharepremium to retained
earnings

–

–

–

–

–

–

Balance as of January 1, 2016

Total transactions with owners
Balance as of June 30, 2016

–

–

–

–

-648,802-648,802

29,592-50,894-46,301-67,603

20,098,699

20,098,699-7-

1st Half, FY2017 (From Jan. 1, 2017 to June 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–––559,353

Other comprehensive
income––––Total comprehensive income

–

–

–

559,353

Purchase of treasury shares––-530,475–

Disposal of treasury shares–-2,97325,234–

Dividends–––-562,614

Reclassification from sharepremium to retained
earnings

–

750

–

-750

Reclassification from othercomponents of equity toretained earnings

–

–

–

-2,196–-2,223-505,241-565,561

7,147,905

7,112,431-2,758,126

7,130,138

Total transactions with owners
Balance as of June 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––––559,353559,353

Other comprehensive
income–-3,486-275-3,761-3,761-3,761

Total comprehensive income–-3,486-275-3,761

555,593555,593

Purchase of treasury shares

–

–

–

–

-530,475-530,475

Disposal of treasury shares

–

–

–

–

22,261

22,261Dividends

–

–

–

–

-562,614-562,614

Reclassification from sharepremium to retained
earnings

–

–

–

–

–

–

Reclassification from othercomponents of equity toretained earnings

–

–

2,196

2,196

–

–

Total transactions with owners
Balance as of June 30, 2017

–

–

2,196

2,196

-1,070,828-1,070,828

7,383-41,072

45,292

11,60318,643,951

18,643,951-8-

(5) Summary consolidated statement of cash flow
(Unit: Thousands of Yen)
1st Half, FY2016

1st Half, FY2017(From Jan. 1, 2017
to June 30, 2017)(From Jan. 1, 2016
to June 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
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-9-

1,431,679
305,150-250,925
8,954
1,597

905,815
326,743
–
5,282
7,247

–

1,467

274,850
135,500-217,125
82,11733,152-85,313
1,719,637
1,054
3,819
-5,994
250,925-82,689
1,886,753-147,276-156-88,914204,678-25,732-25,489
1,163,665
994
1,549-4,275–-599,622
562,311-14,141–-326,790-99,856-4,686-38,334
50,407-434,752-15,000-10,874

8,374

3,637

-90,063–-3,662-530,824-19,237-464,153-329,190-16,299-302,541-364,680
18,419-1,253-995,545-333,280-18,657-562,614-530,475
22,261-1,247-1,424,012-26,088-4,973

334,296
8,628,510-1,330,827
7,738,206

8,962,806

6,407,379

(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.
(Significant post-balance sheet events)
Acquisition of the shares of TAJIMA INCORPORATED (which was made a subsidiary of the Company)
On May 12, 2017, the Company resolved to execute the agreement for transfer of shares to make TAJIMA INCORPORATED(hereinafter referred to as “Tajima”) a subsidiary by acquiring all shares of Tajima. On that day, the Company executed theagreement for the transfer of shares. On July 25, 2017, the Company acquired the shares and made Tajima a subsidiary.
(1) Reasons for acquisition of the shares
Under the medium-term management policy “to evolve into a comprehensive service provider that support a rich car life,” theCompany has realized sustainable growth through proposal and provision of services attractive to car owners and the users of
the automotive aftermarket industry. Meanwhile, Tajima provides high-quality services in the same industry as that of theCompany under the slogan of “honest support for the future of cars.” Although both companies operate in the same industry,
their main customer groups differ. By incorporating Tajima into the group and promoting a system for cooperation between thetwo companies, we believe that we can provide services that satisfy wider range of users than before.
Based on this belief, the Company judged that the corporate value will be enhanced and decided to acquire shares in Tajima andmake it a subsidiary.
(2) Outline of business combination
Name of the company to be acquired:
Description of the business of the company to be acquired:

TAJIMA INCORPORATED
Research, development and sales of software

Date of business combination:

July 25, 2017(3) Acquisition cost for the company to be acquired:

1,670,000 thousand yen(4) Major acquisition-related costs
Compensation, fees, etc. for advisory service

108,666 thousand yen

The amount for part of the service is to be determined, and the amount above is a provisional figure.
(5) Amount of goodwill, and reasons for goodwill
This has yet to be determined.
(6) Breakdown of assets accepted and liabilities assumed on the date of business combination
This has yet to be determined.

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