The following information was originally prepared and published by the Company in Japanese as it contains timely disclosure materials to be submitted to the Tokyo Stock Exchange.
This English translation is for your convenience only. To the extent there is any discrepancy between this English translation and the original Japanese version, please refer to the Japanese version.

Summary of Financial Statements for the First Quarter of the
Fiscal Year Ending December 31, 2021 [IFRS] (Consolidated)
May 10, 2021
Broadleaf Co., Ltd
Stock listing:Tokyo Stock Exchange 1st Section
Representative:
Representative Director and President Kenji Oyama
Scheduled Commencement Date of Dividend Payout:
Earnings Supplementary Explanatory Documents:
Yes
Earnings Results Briefing:
Yes (For institutional investors and analysts)(Figures are rounded to the nearest million yen)
1Q FY2021 (from January 1, 2,021 to March 31, 2021)(1) Consolidated Operating Results (Cumulative)(Percentage below represents increase (decrease) from the same period of previous year)
Revenue
Millionsof yen%Operating profit

Profit before tax

Millionsof yenMillionsof yen%Profit attributable to Total comprehensive
owners of parent
incomeProfitMillionsof yen%Millionsof yen%%Millionsof yen%1Q FY2021

5,195

-1.6

672

10.1

669

6.8

427

3.5

426

3.1

504

89.0

1Q FY2020

5,279

7.2

610

45.3

627

48.0

413

50.8

413

50.9

267

16.8

Basic earnings per share

Diluted earnings per share

Yen

Yen

1Q FY2021

4.86

4.77

1Q FY2020

4.72

4.65

(2) Consolidated Financial Position
Total assets

Equity attributable toowners of parent

Total equity

Millions of yen

Millions of yen

Percentage of equity attributableto owners of parent

Millions of yen%

End of 1Q FY2021

32,216

24,595

24,591

76.3

End of FY2020

32,27424,602

24,60076.2

2. Dividend Status
Dividend per share
End of 1Q

End of 2Q

End of 3Q

Year-end

Total

Yen

Yen

Yen

Yen

Yen

FY2020

-

6.60

-

6.60

13.20

FY2021

3.50

7.00

FY2021 (forecast)

3.50

-

(NOTE) Revisions to the latest announced dividend forecasts: None
Consolidated results forecast for FY2021 (from January 1, 2,021 to December 31, 2021)(Percentage below represents increase (decrease) from the same period of previous year)
Revenue
Millions ofyenOperating profit%

Millions ofyenProfit attributable toowners of the parent

Profit before tax%

Millions ofyen

Basic earnings per share%

Millions of
yen

%

Yen

1H FY2021

9,500

-7.2

700

-57.0

700

-56.6

430

-59.6

4.90

FY2021

20,100

-5.0

2,400

-42.0

2,400

-37.2

1,550

-37.1

17.64

(NOTE) Revisions to the most recently announced results forecast: None

* Notes(1) Changes in significant subsidiaries during the quarter under review (changes in specified subsidiaries accompanied by changes
in the scope of consolidation): None
(2) Changes in accounting policies and changes in accounting estimates
1. Changes in accounting policies required by IFRS: None
2. Other changes in accounting policies: None
3. Changes in accounting estimates: None
(3) Number of shares outstanding (common stock)
1. Number of shares outstanding (including
treasury shares)

1Q FY2021

97,896,800

FY202097,896,800

2. Number of shares of treasury stocks

1Q FY2021

10,058,613

FY2020

10,313,058

3. Average number of shares outstanding
during the period

1Q FY2021

87,682,693

1Q FY2020

87,432,021* Summary of financial statements is outside the scope of audit procedures by certified public accountants and audit firm.
* Comment regarding appropriate usage of results forecast, and other special notes(Note on forward-looking statements)
The forward-looking statements such as results 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 theachievability of what is described in the statements. Actual results may differ from these forecasts due to various factors.
(Availability of earnings supplementary explanatory documents)
The Company plans to hold an earnings results briefing for institutional investors and analysts on May 10, 2021, in the form ofa telephone conference. The materials used at the meeting will be posted on our website.

○Table of Contents of Attached Material
1.Qualitative Information on Operating Results, etc. for the First Three Months Ended March 31, 2021 ..................................

2(1) Qualitative information on financial results ........................................................................................................................

2(2) Qualitative information on financial position .....................................................................................................................

3(3) Qualitative Information on consolidated results forecast .................................................................................................

3

2. Consolidated Financial Statements and Major Notes ...............................................................................................................

4(1) Consolidated statements of financial position .....................................................................................................................

4(2) Consolidated statements of income ............................................................................................................................. ........

5(3) Consolidated statements of comprehensive income ............................................................................................................

6(4) Consolidated statements of changes in equity .....................................................................................................................

7(5) Consolidated statements of cash flows ............................................................................................................................. ...

9(6) Notes regarding consolidated financial statements .............................................................................................................

10(Notes on going concern) ............................................................................................................................. .....................

10(Segment Information) .......................................................................................................................................... ............

101

1. Qualitative Information on Operating Results, etc. for the First Three Months Ended March 31, 2021
(1) Qualitative information on financial results
In the first quarter of the current fiscal year under review (from January 1, 2021 to March 31, 2021), with no signs of an end
to COVID-19 pandemic, economic activities in Japan were significantly affected by the re-announcement of the state of
emergency. After the state of emergency was lifted, business conditions tended to improve particularly in manufacturingindustries, and capital investment showed signs of recovery. However, non-manufacturing industries remained in a severe
situation, especially among small and medium-sized enterprises.
In information service sector to which the Group belongs, there has been growing demand for investing in digitaltransformation (DX) to realize new work styles such as telework and contactless work. On the other hand, due to the uncertain
outlook for the economy, a cautious stance was seen in new investments in non-strategic fields, and the situation continues tofluctuate.
Under such environment, based on the spirit of the corporate philosophy of “Gratitude and Happiness,” the Group is working
to contribute to the business continuity and business creation of its customers. In the first quarter of the fiscal year underreview, we supported the customers' DX by expanding DX solutions in addition to providing business software in order tofurther improve their operational efficiency. In addition, the Group is expanding its business domains by starting the provisionof digital platform including operational management systems to overseas mobility service operators.
In terms of business performance, monthly sales including network use fees and support service fees increased in line with anincrease in the number of the business software users, while sales of devices dropped in reaction to the big deal in the previous
fiscal year. In addition, the ratio of monthly sales in the consolidated revenue rose due to an increase in the number of monthly
subscription contracts for the “.NS series” of business software, and the gross profit margin improved. The Group also madeprogress in streamlining the selling, general and administrative expenses by accelerating the shift to remote internal operations
and online sales activities. At the same time, the Company implemented measures to further increase corporate value such as
investment in development for remodeling the business software to the “.c-Series” and research for creating new services.
As a result, in the first quarter of the current fiscal year under review (from January 1, 2021 to March 31, 2021), revenue was
5,195 million yen (down 1.6% year on year), operating profit was 672 million yen (up 10.1% year on year), profit before
income taxes was 669 million yen (up 6.8% year on year), and profit attributable to owners of the parent was 426 million yen(up 3.1% year on year).
The Company has a single business segment, which consists of IT services. A breakdown of revenue by category is shown in
the table below.
(Millions of yen)
Category

1Q FY2020(From January 1, 2020

1Q FY2021(From January 1, 2021

to March 31, 2020)

to March 31, 2021)

YoY ratio of change

Platform

2,506

2,883

15.0%

Application

2,773

2,312

-16.6%

5,279

5,195

-1.6%

Total

(NOTE) From the first quarter of the current fiscal year, the Group changed revenue categories in order to clarify the progressof their growth strategy in launching the new cloud-based model ".c Series." Figures for the first quarter of theprevious fiscal year have also been rearranged.

2(2) Qualitative information on consolidated financial position(i) Analysis of financial condition(Assets)
Assets at the end of the first quarter of the current fiscal year decreased by 58 million yen from the end of previous
consolidated fiscal year period to 32,216 million yen. Current assets decreased by 574 million yen to 7,178 million yen, while
non-current assets increased by 516 million yen to 25,038 million yen. The decrease in current assets was mainly due todecreases in cash and cash equivalents of 382 million yen and inventories of 197 million yen. The increase in non-current
assets was mainly attributable to an increase in intangible assets of 420 million yen.
(Liabilities)
Liabilities at the end of the first quarter of the current fiscal year decreased by 51 million yen from the end of previous
consolidated fiscal year period to 7,621 million yen. Current liabilities decreased by 39 million yen to 6,393 million yen andnon-current liabilities decreased by 12 million yen to 1,228 million yen. Current liabilities decreased mainly due to decreases
in operating and other payables of 609 million yen, income taxes payable of 319 million yen, other current liabilities of 262
million yen, other financial liabilities of 106 million yen, and contract liabilities of 62 million yen, despite an increase in shortterm interest-bearing debts of 1,318 million yen. The decrease in non-current liabilities was mainly due to a decrease in longterm interest-bearing debts of 58 million yen, despite an increase in deferred tax liabilities of 46 million yen.
(Equity)
At the end of the first quarter of the current fiscal year, equity decreased by 7 million yen from the end of previous
consolidated fiscal year to 24,595 million yen. The decrease in equity was mainly due to a decrease in retained earnings of 144
million yen, despite a decrease in treasury shares of 67 million yen and an increase in share premium of 67 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 decreased by
382 million yen from the end of previous consolidated fiscal year period to 2,850 million yen.
The status of each cash flow and its factors in the first quarter of the current fiscal year are as follows.
(Cash flow from (used in) operating activities)
Cash used in operating activities was 96 million yen (up 116.8% year on year). This was mainly due to a decrease inoperating and other payables of 620 million yen, a decrease in accrued employee bonuses of 281 million yen, and income taxes
paid of 553 million yen, despite income before tax of 669 million yen, depreciation and amortization expense of 567 million
yen, and a decrease in inventories of 197 million yen.
(Cash flows from (used in) investing activities)
Cash used in investing activities was 740 million yen (up 21.2% year on year). This was mainly due to an expenditure of 739
million yen for acquisition of intangible assets.
(Cash flows from (used in) financing activities)
Cash from financing activities was 452 million yen (down 50.5% year on year). This was mainly due to a net increase in
short-term loans payable of 1.302 billion yen, despite repayment of lease obligations of 222 million yen and cash dividends
paid of 578 million yen.
(3) Qualitative Information on consolidated results forecast
No change has been made to the consolidated results forecast for the first half year and the full year of the current fiscal year
published in the "FY12/2020 Financial Results" on February 12, 2021.

32. Consolidated Financial Statements and Major Notes(1) Consolidated statements of financial position(Thousands of yen)
FY2020(As of December 31, 2020)

1Q FY2021(As of March 31, 2021)

AssetsCurrent assets
Cash and cash equivalents

3,232,409

2,850,241

Operating and other receivables
Inventories

3,797,819
355,682

3,778,541
158,766

Other current financial assets
Other current assets

55,000311,078

55,000335,282

7,751,988

7,177,830

Total current assets
Non-current assets
Property, plant and equipment

1,822,803

1,776,273

Goodwill
Intangible assets

11,802,504
8,425,546

11,802,504
8,845,759

Investments accounted for using equity method
Other non-current financial assets

95,703
1,420,760

90,0181,532,086

Other non-current assets
Deferred tax assets

175,836
778,783

199,901
791,648

Total non-current assets

24,521,935

25,038,189

32,273,923

32,216,019

3,538,577

2,929,194

Contract liabilities
Short-term interest-bearing debts

612,413748,408

550,805
2,066,509

Accrued income taxes
Other financial liabilities

554,956
105,529

236,453-

Other current liabilities

872,547

610,308

Total current liabilities

6,432,430

6,393,268

Long-term interest-bearing debts
Obligations for retirement pay

787,905
172,196

729,621
173,201

Provisional sum
Deferred tax liabilities

139,102139,825

139,353
185,344

1,239,027

1,227,518

7,671,457

7,620,786

Total assets
Liabilities and equity
Liabilities
Current liabilities
Operating and other payables

Non-current liabilities

Total non-current liabilities
Total liabilities
EquityCapital stock

7,147,905

7,147,905

Share premium
Treasury shares

7,215,824-3,403,618

7,282,540-3,336,507

Retained earnings
Other components of equity

13,265,826
374,078

13,121,415
375,999

Total equity attributable to owners of parent
Non-controlling interests

24,600,015
2,451

24,591,353
3,880

Total equity

24,602,466

24,595,233

32,273,923

32,216,019

Total Liabilities and equity4(2) Consolidated statements of income(Thousands of yen)
1Q FY2020(From January 1, 2020
to March 31, 2020)

1Q FY2021(From January 1, 2021
to March 31, 2021)

Revenue

5,279,027

5,194,880

Cost of sales-1,641,304-1,529,947

Gross profit

3,637,722

3,664,934

Selling, general and administrative expenses
Other operating revenue-3,024,470
2,521-3,006,433
13,851Other operating expenses-5,593-661

Operating profit
Finance income

610,181
39,033

671,691
18,927

Financing cost
Equity in losses of affiliates-14,055-8,525-9,960-11,458

Profit before tax
Income tax

626,634-213,795

669,200-241,923

Profit412,839427,277

Profit attributable to:
Owners of the parent

412,959

425,848

Non-controlling interests
Profit

-120

1,429

412,839427,277

4.72
4.65

4.86
4.77

Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)5(3) Consolidated statements of comprehensive income(Thousands of yen)
1Q FY2020(From January 1, 2020
to March 31, 2020)
Profit1Q FY2021(From January 1, 2021
to March 31, 2021)

412,839427,277-143,973

73,876-143,973

73,876-1,745

1,432

-531

1,273

Other comprehensive income
Items 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 items that will not be reclassified to profit or loss
Items that may be reclassified to profit or loss
Exchange differences on translating foreign operations
Share of other comprehensive income of associates
accounted for using the equity method
Total items that may be reclassified to profit or loss
Total other comprehensive income, net of tax
Comprehensive income
Comprehensive income attributable to
Owners of the parent
Non-controlling interests
Profit6-2,277

2,705-146,250

76,581

266,589

503,858

266,709502,429

-120

1,429

266,589

503,858

(4) Consolidated statements of changes in equity
1Q FY2020 (From January 1, 2,020 to March 31, 2020)(Thousands of yen)
Equity attributable to owners of parent
Other components of equity
Capital stockSharepremium

TreasurysharesRetainedearnings

7,147,905

7,199,403-3,456,820

11,928,868

537,744-14,000

Profit---412,959--

Other comprehensive income

-

-

-

-

-

-

Total comprehensive income

-

-

-

412,959--

Disposal of treasury shares--2,904

4,404

-

-

-

Dividends----568,279--

Share-based payment transactions

-

-

-

-

56,90914,000Total transactions with owners--2,9044,404-568,279

56,90914,000

Balance as of March 31, 2020

7,147,905

7,196,499-3,452,416

11,773,548

594,653-

Balance as of January 1, 2020

Shares withrestriction ontransfer

Warrants(Thousands of yen)
Equity attributable to owners of parent
Other components of equity

Exchangedifferencesontranslating
foreign
operations

Net change
in fair valueof financial
assets ofequitynaturemeasured atfair value
throughothercomprehensi
ve income-44,269-81,903397,573---2,277

Total comprehensive income

Noncontrollinginterests

Total equity

23,216,929

2,697

23,219,626-

412,959-120

412,839-143,973-146,250-146,250--146,250-2,277-143,973-146,250

266,709-120

266,589

Disposal of treasury shares

-

-

-

1,500

-

1,500

Dividends----568,279--568,279

Share-based payment transactions--

70,90970,909-70,909Total transactions with owners--

70,909-495,870--495,870

Balance as of March 31, 2020

-46,546-225,876

322,232

22,987,767

2,577

22,990,344

Balance as of January 1, 2020
ProfitOther comprehensive income

7

Total

Total

1Q FY2021 (From January 1, 2,021 to March 31, 2021)(Thousands of yen)
Equity attributable to owners of parent
Other components of equity
Capital stockSharepremium

TreasurysharesRetainedearnings

7,147,905

7,215,824-3,403,618

13,265,826

724,241-14,000

Profit---425,848--

Other comprehensive income

-

-

-

-

-

-

Total comprehensive income

-

-

-

425,848--

Disposal of treasury shares-

66,716

67,111--133,826-

Dividends----578,052--

Share-based payment transactions

-

-

-

7,794

45,16514,000Total transactions with owners-

66,716

67,111-570,258-88,660

14,000

Balance as of March 31, 2021

7,147,905

7,282,540-3,336,507

13,121,415

635,581-

Balance as of January 1, 2021

Shares withrestriction ontransfer

Warrants(Thousands of yen)
Equity attributable to owners of parent
Other components of equity

Exchangedifferencesontranslating
foreign
operations

Net change
in fair valueof financial
assets ofequitynaturemeasured atfair value
throughothercomprehensi
ve income-47,026-289,136

374,078

-

-

2,705

Total comprehensive income

Noncontrollinginterests

Total equity

24,600,015

2,451

24,602,466-

425,848

1,429

427,277

73,876

76,581

76,581-

76,581

2,705

73,876

76,581

502,429

1,429

503,858

Disposal of treasury shares---133,826

2-

2

Dividends----578,052--578,052

Share-based payment transactions--

59,16566,959-66,959Total transactions with owners---74,660-511,091--511,091

Balance as of March 31, 2021

-44,321-215,260

375,999

24,591,353

3,880

24,595,233

Balance as of January 1, 2021
ProfitOther comprehensive income

8

Total

Total

(5) Consolidated statements of cash flows(Thousands of yen)
1Q FY2020(From January 1, 2020
to March 31, 2020)

1Q FY2021(From January 1, 2021
to March 31, 2021)

Cash flow from operating activities
Profit before tax

626,634

669,200

Depreciation and amortization expense

512,447

566,708

Share-based payment expense

70,90959,165

Finance costs (income)-24,978-8,967

Equity in loss (earnings) of affiliates
Decrease (increase) in operating and other receivables

8,525

11,458317,588

16,605Decrease (increase) in inventories
Increase (decrease) in operating and other payables

65,110

197,166-607,889-619,864

Decrease (increase) in prepaid expenses-37,408-25,441

Decrease (increase) in long-term prepaid expenses

12,886

19,816

Increase (decrease) in employees' bonuses payable-347,095-281,453

Increase (decrease) in contract liabilities-113,358-61,787

Increase (decrease) in consumption taxes payable

106,291-56,311

Other, net

14,071-28,378

Subtotal

603,731457,917

Interest received

164

651

Interest expenses paid
Income taxes paid or refunded (paid)-1,320-2,088-646,919-552,633

Cash flow from operating activities-44,344-96,152-5,973-12,537-615,701-738,941

-300

-300

Cash flow from investing activities
Acquisition of property, plant and equipment
Acquisition of intangible assets
Loan advances
Collection of loans receivable

405

316

-1,019

-619

846

4,056

11,6178,256-610,124-739,770

Increase (decrease) in short-term loans payable

1,701,000

1,302,000

Repayments of lease obligations-218,572-222,024

Cash dividends paid

-568,279-578,052

Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Other, net
Cash flow from investing activities
Cash flow from financing activities

Proceeds from sales of treasury shares

1,500

-

Expenses related to commitment lines-1,194-49,528

Cash flow from financing activities

914,456452,395

-355

1,359

Impact of exchange fluctuations for cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents

259,632-382,167

Cash and cash equivalents at beginning of period

3,033,768

3,232,409

3,293,400

2,850,241

Balance of cash and cash equivalents at the end of theperiod9

(6) Notes regarding consolidated financial statements(Notes on the Going Concern Assumption)
Not applicable.
(Segment Information)
This information is omitted because the Group is a single segment (IT services).

10