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

Summary of Financial Results for the Second Quarter of the
Fiscal Year Ending December 31, 2023 [IFRS] (Consolidated)
Broadleaf Co., Ltd
Stock listing:
Representative:
Scheduled date of commencement of dividend payout
Earnings Supplementary Explanatory Documents
Earnings Results Briefing:

Tokyo Stock Exchange Prime Market
Representative Director, President and CEO Kenji Oyama‐
Yes
Yes (For institutional investors and analysts)(Amounts of less than JPY one million are rounded)
1. Consolidated Financial Results for the 2Q FY2023 (January 1, 2023 to June 30, 2023)(1) Consolidated Operating Results (Cumulative)(Percentage below represents increase (decrease) from the same period of previous year)
Profit attributable
Total
Revenue
Operating profit Profit before tax
Profitto owners of the comprehensive
parentincomeMillions
Millions
Millions
Millions
Millions
Millions
%
%
%
%
%
%
of yenof yenof yenof yenof yenof yen2Q FY2023
7,390
13.3 -1,111- -1,102
-844
-826
-635
2Q FY2022
6,520 -34.4 -1,398- -1,458- -1,109- -1,109- -1,083
Basic earnings per share Diluted earnings per share
Yen
-9.33
-12.572Q FY2023
2Q FY2022

Yen
-9.33
-12.57(2) Consolidated Financial Position
Total assets
2Q FY2023
FY2022

Total equity

Millions of yen
35,72833,535

Millions of yen
23,09023,662

Owners of the parent
Equity attributable
Millions of yen
23,077
23,632

Owners of the parent
Percentage of equity
%
64.6
70.5

2. Dividends
Dividend per share
End of 3Q
Yen
Yen
FY 20220.00
FY 20230.00
FY2023 (forecast)(NOTE) Revisions to the latest announced dividend forecasts: None
End of 1Q
Yen-

InterimYear-end

Total

Yen
1.00

Yen
1.00

1.00

1.00

3. Consolidated Earnings Forecast FY2023 (January 1, 2023-December 31, 2023)(Percentage below represents increase (decrease) from the same period of previous year)
Profit attributable to Basic earnings per
Revenue
Operating profit
Profit before tax
owners of the parent
shareMillions ofMillions ofMillions ofMillions of
%
%
%
%
Yen
yen
yen
yen
yen
FY2023
15,30010.6-2,200-2,300-1,900-21.42(NOTE) Revisions to the most recently announced earnings forecasts: Yes-1-

The following information was originally prepared and published by the Company in Japanese as it contains timely disclosurematerials to be submitted to the Tokyo Stock Exchange. This English translation is for your convenience only. If there is any
discrepancy between this English translation and the original Japanese version, please refer to the Japanese version.
※ Notes(1) Changes in significant subsidiaries during the current period (changes in specified subsidiaries with changes in the scope of
consolidation): None
(2) Changes in accounting policies and changes in accounting estimates① 1. Changes in accounting policies required by IFRS: None
② ① Changes in accounting policies other than the above: None
③ Changes in accounting estimates: None

(3)Number of shares outstanding (common stock)① 1. Number of shares outstanding(including treasury shares)② 2. Number of shares of treasury shares③ 3. Average number of shares outstanding(during the period)

2Q FY2023

97,896,800 Shares FY 2022

97,896,800 Shares

2Q FY2023

9,095,224 Shares FY 2022

9,507,349 Shares

2Q FY2023

88,600,610 Shares 2Q FY2022

88,212,462 Shares※ * Summary of financial statements is outside the scope of audit procedures by certified public accountants and audit firm.
※ * Comments regarding appropriate usage of earnings forecasts, and other special notes(Notes 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 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 and information on earnings results briefings)
The Company plans to hold an online live presentation for institutional investors and analysts on Thursday, August 10, 2023.
The materials used at the meeting will be posted on its website.

-2-

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

○Table of Contents of the Attached Material
1. Qualitative Information on Quarterly Financial Results for the First Six Months Ended June 30, 2023………………..

4(1) Explanation of Operating Results….............................................................................................................................

4(2) Explanation of Financial Position................................................................................................................................

5(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information………………………..

6

2. Condensed Quarterly Consolidated Financial Statements and Major Notes…………………………………………….

7(1) Condensed Quarterly Consolidated Statements of Financial Position……………………………………………….

7(2) Condensed Quarterly Consolidated Statements of Income..........................................................................................

8(3) Condensed Quarterly Consolidated Statements of Comprehensive Income………………………………………...

9(4) Condensed Quarterly Consolidated Statements of Changes in Equity........................................................................

10(5) Condensed Quarterly Consolidated Statements of Cash Flows……………………………………………………...

12(6) Notes to the Condensed Quarterly Consolidated Financial Statements......................................................................

14(Notes on the going concern) ...................................................................................................................................

14(Segment information) .............................................................................................................................................

14

-3-

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

1. Qualitative Information on Quarterly Financial Results for the First Six Months Ended June 30, 2023
(1) Explanation of Operating Results
During the first six months of the current fiscal year (January 1, 2023 to June 30, 2023) under review, Japanese economy was
gradually picking up with normal economic development due to the lessening of the impact of COVID-19. On the other hand,
The Russian military's invasion of Ukraine has become protracted, and price of things and items have continued to rise.
Therefore, the economic outlook remains uncertain.
Under such social and economic conditions, companies have been increasingly moving toward digital transformation(hereinafter “DX”), such as automating and streamlining business processes and responding to new digital infrastructures. In
the domestic Mobility industry, where many of our customers belong, Broadleaf Co., Ltd group (hereinafter “the Group”) has
seen a positive stance toward investing in IT that not only improves operational productivity, but also enhances the added valueof products and services provided to consumers and leads to the creation of new businesses.
Based on the Group’s corporate philosophy of “Gratitude and Happiness”, the Group implements our Medium-Term
Management Plan (2022-2028) (hereinafter “the Plan”). The Group’s performance targets for the fiscal year ending December
31, 2028, the final year of the plans, which are consolidated revenue of 32.5 billion yen, operating income of 13 billion yen(operating margin of 40%), and profit attributable to owners of the parent of 8 billion yen. The Group promotes two growthstrategies, "Cloud Penetration" and "Service Expansion."In the previous fiscal year (fiscal year ending December 31, 2022), the first year of the Plan, the Group has started offering
cloud services and shifted to a monthly subscription-type business model as a foundation for revenue growth. In the current
fiscal year (fiscal year ending December 31, 2023), the second year of the Plan, the Group was able to actively propose cloudbased software that will lead to customer DX, resulting in a significant rise in the number of monthly subscriptions and steadyprogress in recurring sales accumulation. As a result of the steady progress of these measures, the Group believes that revenue
has shifted to a Growth Trend.
In parallel with these efforts to achieve the performance targets in the Plan, the Group will incorporate OPEN AI's "ChatGPT"
and Broadleaf's proprietary Large-sized Language Model*1, which utilizes the knowledge the Group has cultivated in the
Mobility industry to date, as well as the generation Artificial Intelligence (hereinafter “AI”) function developed by combining
Knowledge Databases*2, into “.c Series” of cloud information and other software. By utilizing this function, customers can help
to improve productivity by streamlining operations in the Mobility industry, and resolve issues such as chronic labor shortages.
At the same time, by developing our products and services and having customers use them, the Group will promote the DX
transformation of the entire Mobility industry.
In addition, the Group has a Knowledge Database possessed, including information on vehicle models, parts information, andmaintenance history of automobiles. Based on this Knowledge Database, the Group has developed an analytical AI function to
detect business irregularities and fraud, and plan to develop it as a new Infrastructure Services. As a result, the Group willcontribute to restoring the credibility of the Mobility industry as a whole by providing safe and secure maintenance and repair
procedure services from a neutral standpoint such as a third-party organization. By implementing these measures, the Groupaims to create a society where car owners can enjoy a safe, secure and fulfilling car life.
Amid the steady progress of various proposals and measures for these customers, in the second quarter of the current fiscal
year under review, the Group strengthened sales of monthly subscription-type software, centered on the mainstay cloud-based
software product “.c Series”. As a consequence, recurring sales has increased as the total number of customers has increased.
Orders for packaged software, mainly for Non-mobility industry, also progressed steadily. In terms of costs, the Group continued
to make upfront investments to prepare for future service expansion, such as strengthening the infrastructure for providing cloudbased software.
As a result of the above, in the consolidated first six months of the current fiscal year, revenue was 7,390 million yen (up13.3% year on year), operating loss was 1,111 million yen (operating loss of 1,398 million yen in the same period of the previous
fiscal year), loss before income taxes was 1,102 million yen (loss before income taxes of 1,458 million yen in the same periodof the previous fiscal year), and loss attributable to owners of the parent was 826 million yen (loss attributable to owners of theparent of 1,109 million yen in the same period of the previous fiscal year).

-4-The following information was originally prepared and published by the Company in Japanese as it contains timely disclosurematerials to be submitted to the Tokyo Stock Exchange. This English translation is for your convenience only. If there is any
discrepancy between this English translation and the original Japanese version, please refer to the Japanese version.
The Group only has a single segment of IT Services, but the breakdown of revenues by service category is as follows.
(Millions of yen)First six months of FY2022(January 1, 2022
To June 30, 2022)

First six months of FY2023(January 1, 2023
To June 30, 2023)

Cloud services

1,046

2,141

104.7%

Packaged system

5,474

5,248

-4.1%

Total

6,520

7,390

13.3 %Classification

YoY ratio

Cloud Services
Revenue from cloud services consists of usage fees for “.c Series” and other monthly subscription-based software, as well asusage fees or commissions related to platforms for ordering automotive aftermarket parts.
Monthly subscription-based software is primarily sold to Mobility industry, and customers using legacy packaged software
gradually switch to “.c Series” as usage rights expire (mostly for 6 years). “.c Series” has also increased the number of new
customers because it is highly convenient, and the menu system is flexible.
Furthermore, secondary products such as the “Dencho.DX” which is covered Electronics Book Storage Act, and other DX
solutions offered increased. With the number of new customers for these monthly subscription-based software, revenue fromcloud services increased 104.7% year on year.
Packaged system
Revenue of packaged system consist of sales proceeds from sales of industry-specific packaged software (lease sales or bulk
sales) for Non-mobility industry such as manufacturing, mobile phone shops, travel services, bus operators, and machine tool
trading companies, and commissions for various services for packaged software, and the sales price of equipment such as PCs
and supplies.
In packaged system revenue, in addition to support services related to the use of packaged software, sales of packaged softwareand equipment for Non-mobility industry were favorable. On the other hand, the Group has terminated the leasing of packaged
software for Mobility industry by our distributors. As a result, packaged system revenue decreased 4.1% year on year.
*1 Large-sized Language Model: A type of AI model used in the field of natural language processing. It is designed to performtasks such as understanding, generating, and translating natural languages by learning large
amounts of text data.
*2 Knowledge Database: A database for collecting, organizing, and managing knowledge and information on specific areas andthemes.

(2) Explanation of Financial Position(i) Analysis of financial condition(Assets)
Assets at the end of the second quarter of the current fiscal year increased by 2,192 million yen from the end of the previous
fiscal year to 35,728 million yen. Current assets increased 135 million yen to 6,690 million yen, while non-current assets
increased 2,058 million yen to 29,038 million yen. The increase in current assets was mainly due to increases of 107 million inother current assets and 104 million in trade and other receivables, despite a decrease of 71 million in cash and cash equivalents.
The increase in non-current assets was mainly due to increases of 1,034 million yen in intangible assets, 592 million yen inproperty, plant and equipment, 337 million yen in other financial assets, and 167 million yen in deferred tax assets.
(Liabilities)
Liabilities at the end of the second quarter of the current fiscal year increased by 2,765 million yen from the end of the previous
fiscal year to 12,638 million yen. Current liabilities increased 2,683 million yen to 9,265 million yen, while non-current liabilities
increased 82 million yen to 3,373 million yen. The increase in current liabilities was mainly attributable to increases of 1,747
million yen in short-term interest-bearing debt and 911 million yen in contract liabilities. The increase in non-current liabilities
was mainly attributable to an increase of 79 million yen in long-term interest-bearing debt.

-5-

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

(Equity)
Equity at the end of the second quarter of the current fiscal year decreased by 573 million yen from the end of the previous
fiscal year to 23,090 million yen. The decrease in other components of equity was mainly attributable to an increase of 137
million yen in other components of equity, a decrease of 122 million yen in treasury stock, an increase of 104 million yen incapital surplus, and a decrease of 918 million yen in retained earnings.
(ii) Analysis of cash flows
Cash and cash equivalents (hereinafter referred to as "cash") at the end of the second quarter of the current fiscal year decreased
by 71 million yen from the end of the previous fiscal year to 3,386 million yen.
The status of each cash flow and its factors for the first six months of the current fiscal year are as follows.
(Cash flow from operating activities)
Net cash provided by operating activities was 1,126 million yen (year-on-year increase of 144.6%). This was mainly due todepreciation and amortization of 1,340 million yen and an increase in contract liabilities of 911 million yen, despite a quarterly
loss before tax of 1,102 million yen.
(Cash flow from investment activities)
Net cash used in investing activities was 1,917 million yen (year-on-year increase of 34.6%). This was mainly due to thepurchase of intangible assets of 1,900 million yen.
(Cash flow from financing activities)
Net cash provided by financing activities was 717 million yen (year-on-year increase of 10.4%). This was mainly due to a netincrease in short-term loans payable of 1,680 million yen, despite repayments of long-term loans payable of 438 million yen,
repayments of lease liabilities of 427 million yen, and cash dividends paid of 88 million yen.
(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements
As described in the Plan (2022-2028) announced on February 9, 2022, the Group aims to expand the business through theprovision of various cloud services and to become a “Leading Company in SaaS” and “One-of-a-kind Platform Company”.
For the fiscal year ending December 31, 2023 (January 1, 2023 to December 31, 2023), taking into account the results for thesecond quarter of the current fiscal year under review, the Group revised its forecasts from the previous one. Revenue is 15,300
million yen (year-on-year increase of 10.6%), operating loss is 2,200 million yen (loss of 2,897 million yen in the previous fiscal
year), loss before income taxes is 2,300 million yen (loss of 3,005 million yen in the previous fiscal year), and loss attributableto owners of the parent is 190 million yen (loss of 2,431 million yen in the previous fiscal year). For details, please refer to "Notice Regarding Differences between Consolidated Earnings Forecast and Actual Results for the First Six Months and Revisions
to Consolidated Earnings Forecast for the Full Year" dated August 10, 2023.

-6-

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

2. Condensed Quarterly Consolidated Financial Statements and Major Notes(1) Consolidated Statements of Financial Position(Thousands of yen)Previous consolidated fiscal year
(As of December 31, 2022)

End of 2nd quarter of the current
fiscal year
(As of June 30, 2023)

AssetsCurrent assets
Cash and cash equivalents

3,456,772

3,385,572

Operating and other receivables

2,602,057

2,705,822

Inventories

130,890

125,794

Other current assets

365,715

473,014

Total current assets

6,555,434

6,690,201

Non-current assets
Property, plant and equipment

1,038,983

1,630,761

Goodwill

11,189,504

11,189,504

Intangible assets

11,771,237

12,805,679

83,01273,608Other financial assets

1,364,416

1,701,861

Other non-current assets

250,391

186,414

Deferred tax assets

1,282,511

1,449,931

Total non-current assets

26,980,055

29,037,758

33,535,490

35,727,958

2,672,827

2,749,689

926,182

1,837,000

2,270,443

4,016,989

Investments accounted for using equity method

Total assets
Liabilities and equity
Liabilities
Current liabilities
Operating and other payables
Contract liabilities
Short-term interest-bearing debts
Accrued income taxes

8,421

6,310

Other current liabilities

704,634

655,292

Total current liabilities

6,582,508

9,265,281

Long-term interest-bearing debts

2,877,710

2,956,230

Obligations for retirement pay

232,191

241,865

Provisional sum

142,292

139,611

Other non-current liabilities

38,67135,409Total non-current liabilities

3,290,865

3,373,114

9,873,373

12,638,395

Capital stock

7,147,905

7,147,905

Share premium

7,366,245

7,470,271

Treasury shares-3,167,193-3,045,268

Retained earnings

11,656,730

10,739,032

Non-current liabilities

Total liabilities
EquityOther components of equity
Total equity attributable to owners of the parent
Non-controlling interests
Total equity
Total liabilities and equity-7-

628,237

765,435

23,631,923

23,077,375

30,194

12,18823,662,116

23,089,563

33,535,490

35,727,958

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

(2) Consolidated Statements of Income(Thousands of yen)First six months of FY2022(January 1, 2022
To June 30, 2022)

First six months of FY2023(January 1, 2023
To June 30, 2023)

Revenue

6,520,351

7,389,797

Cost of sales-2,458,970-2,984,930

Gross profit

4,061,382

4,404,867

Selling, general and administrative expenses-5,478,214-5,528,472

Other operating income

19,152

42,409Other operating expenses-620-29,846

Operating profit-1,398,300-1,111,043

Finance income

18,73553,757

Finance costs-61,613-35,085

Equity in losses of affiliates-16,559-9,404-1,457,738-1,101,775

Quarterly profit before income taxes
Income tax

349,079

257,383-1,108,659-844,392-1,108,659-826,386--18,006-1,108,659-844,392

Basic quarterly profit per share (yen)-12.57-9.33

Diluted quarterly profit per share (yen)-12.57-9.33

Quarterly profit

Quarterly profit attributable
Owners of the parent
Non-controlling interests
Quarterly profit

Quarterly profit per share-8-The following information was originally prepared and published by the Company in Japanese as it contains timely disclosurematerials to be submitted to the Tokyo Stock Exchange. This English translation is for your convenience only. If there is any
discrepancy between this English translation and the original Japanese version, please refer to the Japanese version.

(3) Consolidated Statements of Comprehensive Income(Thousands of yen)First six months of FY2022(January 1, 2022
To June 30, 2022)
Quarterly profit

First six months of FY2023(January 1, 2023
To June 30, 2023)-1,108,659-844,392

20,665

209,831

20,665

209,831-2,527

-68

2,565

-

4,486

-

Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in fair value of equity financial assets measured atfair value through other comprehensive 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
Reclassification adjustments of 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

4,523

-68

25,188

209,763-1,083,471-634,629

Comprehensive income attributable to
Owners of the parent-1,083,471-616,623

Non-controlling interests--18,006

Comprehensive income-1,083,471-634,629-9-

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

(4) Consolidated Statements of Changes in Equity
First six months of FY2022 (From January 1, 2022 to June 30, 2022)(Thousands ofyen)
Equity attributable to owners of the parent
Other components of equity
Capital stock

Balance as of January 1, 2022

Share premium Treasury shares

Retainedearnings

Shares withrestriction ontransfer

Warrants

7,147,905

7,291,792-3,285,446

14,488,974

772,216-14,000

Quarterly profit

-

-

-

-1,108,659--

Other comprehensive income

-

-

-

-

-

-

Total comprehensive income

-

-

-

-1,108,659--

Purchase of treasury stock

-

-

-14

-

-

-

Disposal of treasury shares-

74,341

118,267--141,056-51,552

Dividends----413,579--

Share-based payment transactions

-

-

-

7,031

100,443

26,888-74,341

118,253-406,548-40,613-24,664

7,147,905

7,366,133-3,167,193

12,973,767

731,603-38,664

Total transactions with owners
Balance as of June 30, 2022

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

Exchangedifferences ontranslating
foreign
operations

Net change infair value offinancialassets ofequity nature
measured atfair value
through othercomprehensive
income-48,370-238,987

470,859

26,114,084

26,114,084

-

-

-

-1,108,659-1,108,659

4,523

20,66525,18825,18825,188

Total comprehensive income

4,523

20,66525,188-1,083,471-1,083,471

Purchase of treasury stock

-

-

-

-14

-14

Disposal of treasury shares---192,608--

Dividends----413,579-413,579

Share-based payment transactions--

127,331

134,362

134,362---65,277-279,232-279,232-43,847-218,322

430,770

24,751,381

24,751,381

Balance as of January 1, 2022
Quarterly profit
Other comprehensive income

Total transactions with owners
Balance as of June 30, 2022

- 10 -

Total equity
Total
Total

The following information was originally prepared and published by the Company in Japanese as it contains timely disclosurematerials to be submitted to the Tokyo Stock Exchange. This English translation is for your convenience only. If there is any
discrepancy between this English translation and the original Japanese version, please refer to the Japanese version.
First six months of FY2023 (From January 1, 2023 to June 30, 2023)(Thousands of yen)
Equity attributable to owners of the parent
Other components of equity
Capital stock

Balance as of January 1, 2023

Share premium Treasury shares

Retainedearnings

Shares withrestriction ontransfer

Warrants

7,147,905

7,366,245-3,167,193

11,656,730

812,624-12,888

Quarterly profit

-

-

-

-826,386--

Other comprehensive income

-

-

-

-

-

-

Total comprehensive income

-

-

-

-826,386--

Disposal of treasury shares-

104,026

121,926--173,330-56,000

Dividends----88,389--

Share-based payment transactions

-

-

-

4,577

122,378

26,888Transfer from other components of equity
to retained earnings

-

-

-

-7,500---104,026

121,926-91,312-50,952-29,112

7,147,905

7,470,271-3,045,268

10,739,032

761,673-42,000

Total transactions with owners
Balance as of June 30, 2023

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

Exchangedifferences ontranslating
foreign
operations

Net change infair value offinancialassets ofequity nature
measured atfair value
through othercomprehensiv
e income-41,414-130,086

628,237---68

Total comprehensive income

Non-controllinginterests

Total equity

23,631,923

30,194

23,662,116--826,386-18,006-844,392

209,831

209,763

209,763-

209,763-68

209,831

209,763-616,623-18,006-634,629

Disposal of treasury shares---229,330-3,377--3,377

Dividends----88,389--88,389

Share-based payment transactions--

149,266

153,843-

153,843

Transfer from other components of equity
to retained earnings

-

7,500

7,500

-

-

-

-

7,500

-72,564

62,076-

62,076-41,482

87,245

765,435

23,077,375

12,18823,089,563

Balance as of January 1, 2023
Quarterly profit
Other comprehensive income

Total transactions with owners
Balance as of June 30, 2023

- 11 -

Total
Total

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

(5) Consolidated Statements of Cash Flows(Thousands of yen)First six months of FY2022(January 1, 2022
To June 30, 2022)

First six months of FY2023(January 1, 2023
To June 30, 2023)

Cash flow from operating activities
Quarterly profit before income taxes-1,457,738-1,101,775

Depreciation and amortization expense

1,309,241

1,339,862

Share-based payment expense

127,331

128,975

Finance costs (- shown is income)

42,878-18,109

Equity in loss (- shown is earnings) of affiliates

16,559

9,404

Decrease (increase) in trade and other receivables(- shown is increase)

1,785,131-109,691

Decrease (- shown is increase) in inventories

43,067

5,096

Increase (decrease) in trade and other payables(- shown is decrease)-844,128

60,542

Decrease (- shown is increase) in prepaid expenses-111,872-100,847

Decrease (- shown is increase) in long-term prepaid expenses

38,87245,256

Increase (- shown is decrease) in employees' bonuses payable

48

22,288

Increase (- shown is decrease) in contract liabilities-41,843

910,819

Increase (- shown is decrease) in consumption taxes payable-10,326-43,824

Others-37,936-6,873

Subtotal

859,284

1,141,123

188

77

Interest received
Dividend received

2,130

7,005

Interest expenses paid

-6,843-16,054

Income taxes paid or refunded(- shown is payment)-394,407-6,189Cash flow from operating activities

460,352

1,125,961

Acquisition of property, plant and equipment-6,528-22,322

Proceeds from sales of property, plant and equipment

6,995

-

-1,504,670-1,900,130

-

7,500

-300

-5,332

Cash flow from investing activities

Acquisition of intangible assets
Proceeds from sales and redemption of investments
Loan advances
Collection of loans receivable

65,430

2,185

Payments for lease and guarantee deposits

-297

-878

Proceeds from collection of lease and guarantee deposits

856

1,463

14,626--522-1,423,888-1,916,991

Proceeds from sales of investments accounted for using equity
methodOthersCash flow from investing activities- 12 -

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

(Thousands of yen)First six months of FY2022(January 1, 2022
To June 30, 2022)

First six months of FY2023(January 1, 2023
To June 30, 2023)

Cash flow from financing activities
Net increase (- shown is decrease) in short-term loans payable

1,501,000

1,680,000--437,500

Repayments of lease obligations-428,327-427,229

Cash dividends paid

-413,579-88,389-14-

Repayments of long-term debt

Purchase of treasury stock
Expenses related to commitment lines-9,777-9,962

Cash flow from financing activities

649,303

716,919

Impact of exchange fluctuations for cash and cash equivalents

3,706

2,910

Net increase (- shown is decrease) in cash and cash equivalents-310,528-71,201

Cash and cash equivalents at beginning of period

3,522,045

3,456,772

Balance of cash and cash equivalents at end of period

3,211,517

3,385,572- 13 -

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

(6) Notes to the Condensed Quarterly Consolidated Financial Statements(Notes on the going concern)
Not applicable.
(Segment information)
This information is omitted because the Group only has a single business segment of the IT services.

- 14 -