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 Jap anese version.

Summary of Financial Statements for the Second Quarter of the
Fiscal Year Ending December 31, 2021 [IFRS] (Consolidated)
August 10, 2021
Broadleaf Co., Ltd
Stock listing:Tokyo Stock Exchange 1st Section
Representative:
Kenji Oyama, Representative Director and President
Scheduled Commencement Date of Dividend Payout:
September 17, 2021
Earnings Supplementary Explanatory Documents:
Yes
Earnings Results Briefing:
Yes (For institutional investors and analysts)(Figures are rounded to the nearest million yen)
1. Consolidated Financial Results for the First Six Months of FY2021 (From January 1, 2021 to June 30, 2021)(1) Consolidated Operating Results (Cumulative)(Percentage below represents increase (decrease) from the same period of previous year)
Revenue

2Q FY2021

Millions of
yen
9,937

2Q FY2020

10,232

Operating profit

Profit before tax

Profit attributable to Total comprehensive
owners of the parent
incomeProfitMillions of
yen
-2.9
1,243

Millions of
yen
-23.6
1,239

Millions of
yen
-23.2
796

Millions of
yen
-25.2
795

Millions of
yen
-25.4
856

-11.5

-7.6

-21.7

-22.2

-21.8

-21.7

-26.8

%

%

1,628

Basic earnings per share

1,614

%

1,065

%

1,066

%

967

%

Diluted earnings per share

Yen

Yen

2Q FY2021

9.05

8.90

2Q FY2020

12.18

11.98

(2) Consolidated Financial Position
Total assets

Equity attributable toowners of the parent

Total equity

Percentage of equity attributableto owners of the parent

Millions of yen

Millions of yen

Millions of yen%

End of 2Q FY2021

33,21624,97924,97975.2

End of FY2020

32,27424,602

24,60076.2

2.Dividend Status
Dividend per share
End of 1Q

InterimEnd of 3Q

Year-end

Total

Yen

Yen

Yen

Yen

Yen

FY2020

-

6.60

-

6.60

13.20

FY2021

-

4.00
-

4.00

8.00

FY2021 (forecast)(NOTE)Revisions to the latest announced dividend forecasts: None
3. Consolidated Results Forecasts for FY2021 (January 1, 2021 to December 31, 2021)(Percentage below represents increase (decrease) from the same period of previous year)
Revenue

FY2021Millions ofyen
20,350Operating profit%-3.8

Millions of
yen
2,600

Profit before tax
%

-37.1

(NOTE)Revisions to the latest announced results forecasts: None

Millions of
yen
2,580

%
-32.5

Profit attributable to
Basic earnings per shareowners of the parent
Millions of
%
Yen
yen
1,640
-33.5
18.66

* 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 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)

2Q FY2021

97,896,800 Shares

FY202097,896,800 Shares

2. Number of shares of treasury shares

2Q FY2021

9,901,018 Shares

FY2020

10,313,058 Shares

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

2Q FY2021

87,810,924 Shares

2Q FY2020

87,475,499 Shares* Summary of financial statements is outside the scope of audit procedures by certified public accountants and audit firm.
* Comments regarding appropriate usage of results forecasts, and other special notes(Notes 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 and information on earnings results briefings)
The Company plans to hold an earnings results briefing for institutional investors and analysts on August 11, 2021, in the formof an online livestream. The materials used at the meeting will be posted on our website.

○Table of Contents of the Attached Material
1.Qualitative Information on Operating Results, etc. for the First Six Months Ended June 30, 2021 .........................................

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

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

3(3) Qualitative information on consolidated results forecasts ..................................................................................................

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 Six Months Ended June 30, 2021
(1) Qualitative information on financial results
During the first six months of the current fiscal year (from January 2021 to June 2021), the Japanese economy continued torecover amid the harsh economic conditions caused by COVID-19. The recovery is expected to continue due to the positiveeffects of various policies and improvements in overseas economies, but the impact of future infection trends on domestic andoverseas economies needs to be closely monitored since the outlook remains unpredictable.
In information technology services industry where the Group belongs, corporate investments in DX (Digital Transformation)
for realizing "new working styles" including telework and contactless work were expanding, and the DX-related market
continued to be favorable. On the other hand, against the backdrop of an uncertain outlook for the economy, a cautious stancetowards new investments in non-strategic domains had been observed, so there were both strong and weak demands for IT
investments.
Given such conditions, the Group continued activities that contribute to the business continuity and business creation of its
clients, based on the spirit of its corporate philosophy of "Gratitude and Happiness." During the first six months of the current
fiscal year, the Group expanded DX solutions to support promotion of its clients' DX in addition to sales of business software.
Also, in order to stabilize and enhance its revenue over the medium-to-long term, the Group began transition of the businesssoftware sales to monthly subscription models.
Among these initiatives, the ratio of monthly subscription models in business software sales rose more than initially planned.
This will stabilize and enhance its revenue over the medium-to-long term, but it also caused the short-term decline in revenue. A
decline in sales of devices in reaction to the large orders of devices in the first quarter of the previous fiscal year was also a factor
behind decline in revenue. On the other hand, since the Group continued to strengthen its sales capabilities including proposal
capabilities for promoting its clients’ DX, the acquisition of new clients for business software remained strong, which led to anincrease in monthly sales of network usage fee and support service fees. In addition, the Group actively conducted advertisingand other sales promotion activities which led to the acquisition of new clients, while reducing costs of sales activities by actively
promoting online sales activities.
As a result, in the first six months of the current fiscal year (from January 1, 2021 to June 30, 2021), the Group posted revenueof 9,937 million yen (down 2.9% year on year), operating profit of 1,243 million yen (down 23.6% year-on-year), profit before
tax of 1,239 million yen (down 23.2% year-on-year) , and profit attributable to owners of the parent of 795 million yen (down
25.4% year-on-year).
The Group has a single business segment which consists of IT services. A breakdown of revenue by category is shown in thetable below.
(Millions of yen)
Category

First six months of FY2020

First six months of FY2021(from January 1, 2020
to June 30, 2020)(from January 1, 2021
to June 30, 2021)

YoY ratio

Platform

5,072

5,552

9.5%

Application

5,160

4,385

-15.0%

10,232

9,937

-2.9%

Total

(NOTE) From the first six months of the current fiscal year, the Group changed revenue categories in order to clarify the
progress of their growth strategy in launching the new cloud-based model, ".c Series." Figures for the first six monthsof the previous fiscal year have also been recomposed.

2(2) Qualitative information on financial position(i) Analysis of financial condition(Assets)
Assets at the end of the first six months of the current consolidated fiscal year increased by 942 million yen from the end of
previous consolidated fiscal year to 33,216 million yen. Current assets decreased by 85 million yen to 7,667 million yen andnon-current assets increased by 1,027 million yen to 25,548 million yen. Current assets decreased mainly due to decreases of
171 million yen in inventories, 50 million yen in other current financial assets, and 34 million yen in operating and otherreceivables, despite increases of 115 million yen in other current assets and 55 million yen in cash and cash equivalents. The
increase in non-current assets was mainly due to an increase of 963 million yen in intangible assets.
(Liabilities)
Liabilities at the end of the first six months of the current fiscal year increased by 565 million yen from the end of previous
consolidated fiscal year to 8,237 million yen. Current liabilities increased by 666 million yen to 7,099 million yen, and noncurrent liabilities decreased by 101 million yen to 1,138 million yen. Current liabilities increased mainly due to an increase of
1,669 million yen in short-term interest-bearing debts, despite decreases of 451 million yen in operating and other payables,
174 million yen in other current liabilities, 157 million yen in contract liabilities, and 117 million yen in accrued income taxes.
The decrease in non-current liabilities was mainly due to a decrease of 181 million yen in long-term interest-bearing debts,
despite an increase of 39 million yen in other non-current liabilities and 36 million yen in deferred tax liabilities.
(Equity)
Equity at the end of the first six months of the current fiscal year increased by 376 million yen from the end of previous
consolidated fiscal year to 24,979 million yen. The increase in equity was mainly attributable to an increase of 225 million yen
in retained earnings and a decrease of 118 million yen in treasury shares.
(ii) Analysis of cash flows
Cash and cash equivalents ("cash") at the end of the first six months of the current fiscal year increased by 55 million yen fromthe end of previous consolidated fiscal year period to 3,287 million yen.
The status of each cash flow and its factors in the first six months of the current fiscal year are as follows.
(Cash flow from (used in) operating activities)
Cash from operating activities was 1,080 million yen (down 1.9% year on year). This was mainly attributable to profit
before tax of 1,239 million yen and depreciation and amortization expense of 1,120 million yen, despite income taxes paid of
552 million yen, a decrease of 478 million yen in operating and other payables, and a decrease of 212 million yen in
consumption taxes payable.
(Cash flows from (used in) investing activities)
Cash used in investing activities was 1,564 million yen (up 21.8% year on year). This was mainly attributable to acquisitionof intangible assets of 1,597 million yen.
(Cash flows from (used in) financing activities)
Cash from financing activities was 537 million yen (cash flow used in financing activities was 23 million yen in the same
period of the previous fiscal year). This was mainly due to a net increase of 1,652 million yen in short-term loans payable,
despite cash dividends paid of 578 million yen and repayments of lease obligations of 449 million yen.
(3) Qualitative information on consolidated results forecasts
There is no change in consolidated results forecasts from the results forecasts announced in "Notice of Revisions toConsolidated Earnings Forecasts and Dividend Forecast" on July 28, 2021.

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

2Q FY2021(As of June 30, 2021)

AssetsCurrent assets
Cash and cash equivalents
Operating and other receivables

3,232,409
3,797,819

3,287,168
3,764,124

Inventories
Other current financial assets

355,682
55,000184,665
5,000

Other current assets

311,078

426,179

Total current assets

7,751,988

7,667,135

Property, plant and equipment
Goodwill

1,822,803
11,802,504

1,661,529
11,802,504

Intangible assets
Investments accounted for using equity method

8,425,546
95,703

9,388,909
100,157

Other non-current financial assets
Other non-current assets

1,420,760
175,836

1,516,876
291,292

Non-current assets

Deferred tax assets

778,783

787,174

24,521,935

25,548,442

32,273,923

33,215,577

3,538,577
612,4133,087,893
455,475

Short-term interest-bearing debts
Accrued income taxes

748,408
554,956

2,417,900
438,436

Other financial liabilities
Other current liabilities

105,529872,547

698,896

Total current liabilities

6,432,430

7,098,600

Non-current liabilities
Long-term interest-bearing debts

787,905

607,193

Obligations for retirement pay
Provisional sum

172,196
139,102

176,552
139,523

Deferred tax liabilities
Other non-current liabilities

139,825-

175,400
39,484

Total non-current liabilities

1,239,027

1,138,153

7,671,457

8,236,753

7,147,905

7,147,905

Share premium
Treasury shares

7,215,824-3,403,618

7,291,792-3,285,446

Retained earnings
Other components of equity

13,265,826
374,078

13,490,631
333,943

Total equity attributable to owners of parent
Non-controlling interests

24,600,015
2,451

24,978,825-

Total equity

24,602,466

24,978,825

32,273,923

33,215,577

Total non-current assets
Total assets
Liabilities and equity
Liabilities
Current liabilities
Operating and other payables
Contract liabilities

Total liabilities
EquityCapital stock

Total liabilities and equity4(2) Consolidated statements of income(Thousands of yen)First six-months of FY2020(From January 1, 2020
to June 30, 2020)

First six-months of FY2021(From January 1, 2021
to June 30, 2021)

Revenue
Cost of sales

10,231,942-3,006,341

9,937,265-2,866,930

Gross profit
Selling, general and administrative expenses

7,225,601-5,603,115

7,070,335-5,844,755

10,996-5,67024,525-7,222

Operating profit

1,627,812

1,242,882

Finance income
Financing costs

41,577-37,916

22,173-24,460

Other operating revenue
Other operating expenses

Equity in losses of affiliates-17,043-1,313

1,614,430

1,239,283

Corporate income tax-549,774-442,790

Profit

1,064,656

796,492

Owners of the parent
Non-controlling interests

1,065,596-940

795,063
1,429

Profit

1,064,656

796,492

12.18

9.05

11.98

8.90

Profit before tax

Profit attributable to:Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)5(3) Consolidated statements of comprehensive income(Thousands of yen)First six months of FY2020(From January 1, 2020
to June 30, 2020)
ProfitFirst six months of FY2021(From January 1, 2021
to June 30, 2021)

1,064,656

796,492-96,90961,437-96,90961,437-572-3,153

-286

1,268

-858

-1,885-97,767

59,552966,889

856,044

Owners of the parent
Non-controlling interests

967,829-940

854,615
1,429

Profit966,889

856,044

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 to6(4) Consolidated statements of changes in equity
First six months of FY2020 (From January 1, 2020 to June 30, 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

---1,065,596--

Other comprehensive income

-

-

-

-

-

-

Total comprehensive income

-

-

-

1,065,596--

Disposal of treasury shares

-

1,969

10,744--15,372-

Dividends----568,279--

Share-based payment transactions-

14,142

41,857-

113,439-28,000-

16,11252,601-568,279

98,068-28,000

7,147,905

7,215,515-3,404,219

12,426,185

635,812-42,000

Balance as of January 1, 2020

Total transactions with owners
Balance as of June 30, 2020

Shares withrestriction ontransfer

Warrants(Thousands of yen)
Equity attributable to owners of parent
Other components of equity
Net change
in fair valueof financial
assets ofequitynaturemeasured atfair value
throughothercomprehensi
ve incomeExchangedifferencesontranslating
foreign
operations

Balance as January 1, 2020

Total

Total

Noncontrollinginterests

Total equity-44,269-81,903397,573

23,216,929

2,697

23,219,626

-

-

-

1,065,596-940

1,064,656-858-96,909-97,767-97,767--97,767

Total comprehensive income-858-96,909-97,767

967,829-940

966,889

Disposal of treasury shares---15,372-2,659--2,659Dividends----568,279--568,279

Share-based payment transactions--

85,439141,439-

141,439--

70,068-429,499--429,499-45,127-178,812

369,873

23,755,258

1,757

23,757,015

ProfitOther comprehensive income

Total transactions with owners
Balance as of June 30, 20207

First six months of FY2021 (From January 1, 2021 to June 30, 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---795,063--

Other comprehensive income

-

-

-

-

-

-

Total comprehensive income

-

-

-

795,063--

Disposal of treasury shares-

105,560

118,172--171,167-

Dividends----578,052--

Share-based payment transactions

-

-

-

7,794

99,480-28,000

Changes in ownership interest in
subsidiaries--29,592

-

-

-

-

-

75,968118,172-570,258-71,687-28,000

7,147,905

7,291,792-3,285,446

13,490,631

652,554-42,000

Balance as of January 1, 2021

Total transactions with owners
Balance as of June 30, 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---1,885

Total comprehensive income

Noncontrollinginterests

Total equity

24,600,015

2,451

24,602,466-

795,063

1,429

796,492

61,43759,55259,552-59,552-1,88561,43759,552854,6151,429

856,044

Disposal of treasury shares---171,167

52,565-52,565

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

Share-based payment transactions--

71,48079,274-

79,274

Changes in ownership interest in
subsidiaries

-

-

-

-29,592-3,880-33,472---99,687-475,805-3,880-479,685-48,912-227,699

333,943

24,978,825-

24,978,825

Balance as of January 1, 2021
ProfitOther comprehensive income

Total transactions with owners
Balance as of June 30, 2021

8

Total

Total

(5) Consolidated statements of cash flows(Thousands of yen)First six months of FY2020(From January 1, 2020
to June 30, 2020)

First six months of FY2021(From January 1, 2021
to June 30, 2021)

Cash flow from operating activities
Profit before tax

1,614,430

1,239,283

Depreciation and amortization

1,029,260

1,120,233

Share-based payment expense

141,439

124,044

Finance costs (income)-3,6612,286

Equity in loss (earnings) of affiliates

17,043

1,313-171,524

30,46942,201

171,272-604,843-478,315

Decrease (increase) in prepaid expenses

10,440-118,708

Decrease (increase) in long-term prepaid expenses

26,529-71,413

Increase (decrease) in employees' bonuses payable-199,628-19,500

Increase (decrease) in contract liabilities-218,720-156,938

Increase (decrease) in consumption taxes payable

65,538-211,547

Other, net-3,457683

Subtotal

1,745,048

1,633,161

3,891

1,423

Decrease (increase) in operating and other receivables
Decrease (increase) in inventories
Increase (decrease) in operating and other payables

Interest received
Dividend received

1,839

2,033

Interest expenses paid

-5,068-5,395

Income taxes refunded (paid)-645,503-551,517

Cash flow from operating activities

1,100,207

1,079,705-12,579-24,781-1,233,383-1,596,597-51,100-300

771

50,658

Payments for lease and guarantee deposits-1,097-7,488Proceeds from collection of lease and guarantee deposits

1,706

7,587

Other, net

11,406

6,655-1,284,277-1,564,267

Increase (decrease) in short-term loans payable (-)

1,001,000

1,652,000

Repayments of lease obligations-454,185-448,722

Cash dividends paid

-568,279-578,052

1,500

-

-

-33,472

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

Cash flow from investing activities
Cash flow from financing activities

Proceeds from sales of treasury shares
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Expenses related to commitment lines-3,231-54,501

Cash flow from financing activities-23,195

537,252

-294

2,069

Net increase (decrease) in cash and cash equivalents-207,560

54,759Cash and cash equivalents at beginning of period

3,033,768

3,232,409

Balance of cash and cash equivalents at the end of theperiod2,826,208

3,287,168

Impact of exchange fluctuations for cash and cash
equivalents9(6) Notes regarding consolidated financial statements(Notes on the going concern)
Not applicable.
(Segment Information)
This information is omitted because the Group is a single segment (IT services business).

10