Summary of Financial Statements for the First Quarter of the
Fiscal Year Ending December 31, 2017 [IFRS] (Consolidated)
May 12, 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:
May 12, 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 1st Quarter of the FY2017 (from January 1, 2017 to March 31, 2017)(1) Consolidated Results of Operations(Percentage below represents increase (decrease) from the same period of previous year)
Revenue

Operating profit

Millions of Yen

Q1 FY2017
Q1 FY2016

3,295
3,448

% Millions of Yen

-4.5
–

-78
285

Basic earnings per share
Q1 FY2017

Profit before tax

ProfitProfit attributable toowners of parent

Total comprehensive
income% Millions of Yen%

Millions of Yen%

Millions of Yen%

Millions of Yen

%

–
–

–
–

-57
178

–
–

-57
178

–
–

-73
175

–
–

-82
280

Diluted earnings per share
Yen

Yen

-1.29
3.68

-1.29
3.68

Q1 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%

22,74025,32218,001
19,15918,001
19,15979.2
75.7

End of Q1 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‒FY2017 (Forecast)
11.00
‒
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

1st Half of FY2017

Operating profit

Profit attributable toowners of parent

Profit before tax

Basic earnings per
share

Millions of Yen%

Millions of Yen%

Millions of Yen%

Millions of Yen

%

Yen

8,100
17,000

‒

600
2,000

‒

600
1,960

‒

390
1,230

‒

8.81
27.79

FY2017
1.4
-32.3
-32.9
(Note) Revisions to the latest forecast of earnings: No
Statement of percentages to show increases (decreases) from the previous fiscal year for the first half of FY2016 is omitted.

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-34.4

* 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)

Q1 FY2017

48,948,400

FY201648,948,400

2. Number of shares of treasury stock

Q1 FY2017

4,724,568

FY2016

3,939,268

3. Average number of shares outstanding
44,400,583
48,410,839
Q1 FY2017
Q1 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, May 15, 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 Three Months Ended March 31, 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) .......................................................................................................................................................
(Significant post-balance sheet events) ..............................................................................................................................

6
6
7
8
9
11
12
12
12
12

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1. Qualitative Information on Operating Results, etc. for the Three Months Ended March 31, 2017
(1) Qualitative information on financial results
In the first three months of the fiscal year ending December 31, 2017, the Japanese economy remains on a moderate recovery
trend partly backed by improved corporate earnings. Going forward, the moderate recovery is expected to continue, partly
because of the effect of government policies and partly because of improved employment and income situations. However,attention should be paid to the risks that uncertainty over policies in the U.S. and other countries represent for 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 three months of the fiscal year under review, the Company posted revenue of 3,295 million yen (down
4.5% year on year). In terms of profits and losses, the Company recorded an operating loss of 78 million yen (compared with anoperating profit of 285 million yen a year ago), a loss before tax of 82 million yen (compared with a profit before tax of 280
million yen a year ago) and a loss attributable to owners of parent of 57 million yen (compared with a profit attributable to ownersof parent of 178 million yen a year ago), mainly due to a decrease in revenue and an increase in stock-related expenses.
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)
Q1 FY2016(From Jan. 1 to Mar. 31,
2016)

Q1 FY2017(From Jan. 1 to Mar. 31,
2017)Year-on-year rate of change

2,003

1,794

-10.4%

System Support

314

300

-4.5%

Network Service

1,131

1,201

6.1%

Total

3,448

3,295

-4.5%

DomainBusiness Application
Software(2) Qualitative information on financial position(i) Analysis of financial position(Assets)
Assets at the end of the first quarter of the consolidated fiscal year under review declined 2,582 million yen from the end of theprevious consolidated fiscal year, to 22,740 million yen. Current assets fell 2,557 million yen, to 9,748 million yen, and noncurrent assets decreased 25 million yen, to 12,992 million yen. The decrease in current assets was mainly attributable to decreases
in operating and other receivables of 1,366 million yen and cash and cash equivalents of 1,296 million yen.
(Liabilities)
Liabilities fell by 1,424 million yen from the end of the previous consolidated fiscal year, to 4,739 million yen. Current liabilities
fell 1,244 million yen, to 3,736 million yen, and non-current liabilities decreased by 180 million yen, to 1,003 million yen. The
main factors for the fall in current liabilities were decreases in operating and other payables of 681 million yen and income taxes
payable of 601 million yen. The decrease in non-current liabilities was mainly attributable to a decrease in long-term interestbearing debt of 180 million yen.

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(Equity)
Equity declined 1,158 million yen from the end of the previous consolidated fiscal year, to 18,001 million yen. The decrease waschiefly attributable to a decrease in retained earnings of 620 million yen and an increase in treasury shares of 521 million yen.
(ii) Analysis of cash flows
Cash and cash equivalents (“cash”) at the end of the first quarter of the consolidated fiscal year under review declined 1,296
million yen from the end of the previous consolidated fiscal year, to 6,442 million yen.
The following is a description of the situation and major factors of each category of cash flows in the three months ended March
31, 2017.
(Net cash from (used in) operating activities)
Cash flows provided by operating activities stood at 119 million yen, mainly reflecting a decrease in operating and otherreceivables of 1,365 million yen which is partially offset by a decrease in operating and other payables of 681 million yen andthe income taxes paid of 577 million yen.
(Net cash from (used in) investing activities)
Cash flows used in investing activities came to 139 million yen, mainly due to the acquisition of intangible assets of 111 million
yen.
(Net cash from (used in) financing activities)
Cash flows used in financing activities were 1,272 million yen, chiefly attributable to the cash dividends paid of 563 million yen
and the purchase of treasury shares of 530 million yen.
(3) Qualitative Information on consolidated earnings forecast
There have been no changes in the consolidated results forecasts for the six months ending June 30, 2017 and for the fiscal year
ending December 31, 2017 announced in the “Summary of Financial Statements for the Fiscal Year Ended December 31, 2016”
on February 14, 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

Q1 FY2017(As of Mar. 31, 2017)

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

6,441,850
2,833,490
122,124
220
349,935
9,747,620

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

409,801
10,031,002
1,127,183
68,577
1,156,960
21,226
177,714
12,992,464
22,740,084

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

2,459,808
652,539–
84,891
538,864
3,736,102

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

892,392
110,523
1,002,915
4,739,016

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
7,113,585-2,774,014
6,516,471-2,87918,001,067–
18,001,067
22,740,084

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 property, plant and equipment
Total assets-6-

(2) Summary consolidated statement of income(Unit: Thousands of Yen)
Q1 FY2016(From Jan. 1, 2016
to Mar. 31, 2016)

Q1 FY2017(From Jan. 1, 2017
to Mar. 31, 2017)

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Other operating income
Other operating expense
Operating profit (loss)
Finance income
Finance cost
Equity in loss of affiliates
Profit (loss) before tax
Income tax
Profit (loss)

3,448,397-1,049,546
2,398,851-2,362,495
251,805-3,087
285,075
4,460-9,285-505
279,744-101,532
178,2123,294,903-946,911
2,347,992-2,429,687
5,246-1,495-77,945
4,032-4,198-3,693-81,804
24,543-57,261

Profit (loss) attributable to owners of parent

178,212-57,261

3.68
3.68

-1.29
-1.29

Earnings per share
Basic earnings (loss) per share (yen)Diluted earnings (loss) per share (yen)-7-(3) Summary consolidated statement of comprehensive income(Unit: Thousands of Yen)
Q1 FY2016(From Jan. 1, 2016
to Mar. 31, 2016)
Profit (loss)
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
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-

Q1 FY2017(From Jan. 1, 2017
to Mar. 31, 2017)

178,212-57,261

2,824-13,952

2,824-13,952-8,732-7,969

2,619

5,875

-6,113-2,094-3,289-16,046

174,923-73,307

174,923-73,307(4) Summary consolidated statement of changes in equity
Q1 FY2016 (From Jan. 1, 2016 to Mar. 31, 2016)(Unit: Thousands of Yen)
Equity attributable to owners of parent
Capital stock
Balance as of January 1, 2016
ProfitOther comprehensive income
Total comprehensive income
Disposal of treasury shares
Cancellation of treasury shares
Dividend
Reclassification from share premium
to retained earnings
Total transactions with owners
Balance as of March 31, 2016

Share premium

Treasury shares

Retained earnings

7,147,905
–
–
–
–
–
–

7,128,960–––-1,991-967,177–-1,330,018–––
11,338967,177–

6,941,080
178,212–
178,212––-302,541–

967,177–-967,177–
7,147,905-1,991
7,126,968

978,514-351,504-1,269,718
5,849,574(Unit: Thousands of Yen)

Warrants

Balance as of January 1, 2016
ProfitOther comprehensive income
Total comprehensive income
Disposal of treasury shares
Cancellation of treasury shares
Dividend
Reclassification from share premium
to retained earnings
Total transactions with owners
Balance as of March 31, 2016

29,592––––––Equity attributable to owners of parent
Other components of equity
Net change in fairvalue of financial
Exchange
assets of equity
differences on nature measured at
Totaltranslation offair value throughforeign operations
othercomprehensive
income-11,171
8,326
26,748–––-6,1132,824-3,289-6,1132,824-3,289
–
–
–
–
–
–
–
–
–

Total equity

Total

19,914,674
178,212-3,289174,923
9,346–-302,541

19,914,674
178,212-3,289174,923
9,346–-302,541

–

–

–

–

–

–

–
29,592–-17,284–
11,150–23,459-293,195
19,796,402-293,195
19,796,402-9-

Q1 FY2017 (From Jan. 1, 2017 to Mar. 31, 2017)(Unit: Thousands of Yen)
Equity attributable to owners of parent
Capital stock
Balance as of January 1, 2017
Profit (loss)
Other comprehensive income
Total comprehensive income
Purchase of treasury shares
Disposal of treasury shares
Dividends
Total transactions with owners
Balance as of March 31, 2017

Share premium

7,147,905
–
–
–
–
–
–
–
7,147,905

7,114,654––––-1,069
–-1,0697,113,585

Treasury shares-2,252,885–––-530,475
9,346–-521,129-2,774,014

Retained earnings
7,136,345-57,261–-57,261––-562,614-562,614
6,516,471(Unit: Thousands of Yen)

Warrants

Balance as of January 1, 2017
Profit (loss)
Other comprehensive income
Total comprehensive income
Purchase of treasury shares
Disposal of treasury shares
Dividends
Total transactions with owners
Balance as of March 31, 2017

7,383
–
–
–
–
–
–
–
7,383

Equity attributable to owners of parent
Other components of equity
Net change in fairvalue of financial
Exchange
assets of equity
differences on nature measured at
Totaltranslation offair value throughforeign operations
othercomprehensive
income-37,586
43,37013,167–––-2,094-13,952-16,046-2,094-13,952-16,046
–
–
–
–
–
–
–
–
–
–
–
–
-39,680
29,418-2,879- 10 -

Total

19,159,187-57,261-16,046-73,307-530,475
8,277-562,614-1,084,812
18,001,067

Total equity

19,159,187-57,261-16,046-73,307-530,475
8,277-562,614-1,084,812
18,001,067

(5) Summary consolidated statement of cash flow
(Unit: Thousands of Yen)
Q1 FY2016(From Jan. 1, 2016
to Mar. 31, 2016)
Cash flows from operating activities
Profit (loss) before tax
Depreciation and amortization expense
Compensation for damage received
Finance income and costs
Equity in loss (earnings) of affiliates
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
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
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 -Q1 FY2017(From Jan. 1, 2017
to Mar. 31, 2017)279,744
152,108-250,925
4,826
505
789,563
56,082-322,249-42,429
62,158-116,166
613,218960
3,500-3,326250,925-80,377
784,900-81,804
151,396－
166
3,693
1,365,036-12,259-680,694
88,596
4,162-140,425
697,866244－-2,346－-576,596
119,168-2,996-122,635-27,187-1,113-3,368-111,473-15,000-10,501

6,555

338

-92,250－

1,142-238,484

1,048-138,957-173,190-8,144-295,051－
9,346-467,038-177,280-9,795-562,614-530,475
8,277-1,271,887-10,759-4,68068,6198,628,510-1,296,355
7,738,206

8,697,128

6,441,850

(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)
The Company resolved at a meeting of its Board of Directors held on May 12, 2017 to execute the agreement for transfer ofshares to make TAJIMA INCORPORATED (hereinafter referred to as “Tajima”) by acquiring all shares of Tajima. On that day,the Company executed the agreement for transfer of shares. The Company will acquire the shares on July 31, 2017.
(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 31, 2017 (scheduled)(3) Acquisition cost for the company to be acquired: 1,670,000 thousand yen (scheduled)(4) Fair value of assets and liabilities and goodwill on the date of business combination
The amount of assets and liabilities on the date of business combination is not determined and so the statement thereof is omitted.

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