Summary of Financial Statements for FY2022 [IFRS] (Consolidated)
February 10, 2023
Broadleaf Co., Ltd
Stock listing:
Representative:
Scheduled date of Annual General Meeting of Shareholders
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
March 24, 2023
March 27, 2023
Yes
Yes (For institutional investors and analysts)(Figures are rounded to the nearest million yen)

1. Consolidated Results for FY2022 (January 1, 2022 to December 31, 2022)(Percentage below represents increase (decrease) from the same period ofprevious year)
Profitattributable
toTotal
comprehensive
Profit before tax
Profitowners of the parent
income(1)Consolidated Operating Results
Revenue

FY 2022
FY2021Millions ofyen
13,833
20,652

Operating profit
%
-33.0
-2.4

Millions ofyen-2,897
3,395

%
-17.9

Millions ofyen-3,005
3,233

Basic earnings per share Diluted earnings per share
Yen-27.5424.72

FY 2022
FY2021Millions ofyen-2,432
2,174

%
-15.4

%
-11.8

Return on equity

Yen-27.54
24.32

Millions ofyen-2,431
2,173

%
-11.9

Return on assets

%
-9.8
8.6

Millions ofyen-2,320
2,201

%
-3.2

Operating margin

%
-8.8
9.7

%
-20.9
16.4

FY2022: -1 million yen(Reference) Share of profit or loss of entities accounted for using equity method

FY2021: -6 million yen(2)Consolidated Financial Position
Total assets

FY 2022
FY2021

Total equity

Millions of yen
33,53534,476Percentage of equity
attributable to owners of
the parent

Equity attributable toowners of the parent per
share

Millions of yen
23,632
26,114

%
70.5
75.7

Yen
267.36296.77

Millions of yen
23,662
26,114(3)Consolidated Cash Flows Status
Cash flow from operating
activities

Cash flow from investing
activities

Millions of yen
1,606
3,783

FY 2022
FY2021Equity attributable toowners of the parent

Cash flow from financing
activities

Millions of yen-2,910-3,388Cash and cash equivalents
at end of period

Millions of yen
1,237
-108

Millions of yen
3,457
3,522

2.Dividends Status
Dividend per share

End of 1Q

FY2021
FY2022

InterimEnd of 3Q

Year-end

Total

Yen
-

Yen
4.00
0.00

Yen
-

Yen
4.70
1.00

Yen
8.70
1.00

-

-

-

-

-

FY2023 (forecast)

Ratio ofdividends to
Dividend payout equity
Total dividend
ratio
attributable to(Consolidated) owners of theparent(consolidated)
Millions of yen
%
%
795
35.2
3.0
92
0.4
-

(NOTE)Dividend forecasts for FY2023 are currently undetermined.
3. Consolidated Earnings Forecasts for FY2023 (January 1, 2023 to December 31, 2023)(Percentage below represents increase (decrease) from the same period of previous year)
Revenue
Operating profit
Profit before tax
Profit attributable to Basic earnings per shareowners of the parent

1H FY2023
FY2023

Millions of
yen
6,700
15,000%
2.8
8.4

Millions ofyen-2,150-2,700%-Millions ofyen-2,200-2,800%-Millions ofyen-1,900-2,400%Yen--21.45-27.07

※ 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)

FY2022

97,896,800 shares

FY202197,896,800 shares

2. Number of shares of treasury shares

FY2022

9,507,349 shares

FY2021

9,901,018 shares

3. Average number of shares during the period

FY202288,301,684 shares

FY202187,904,113 shares(Reference) Summary of Non-consolidated Financial Results
1. Non-consolidated financial results for FY2022 (January 1, 2022 to December 31, 2022)(Percentage below represents increase (decrease) from the same period of(1) Non-Consolidated Operating Results
previous year)
Net sales
FY2022
FY2021

Operating income

Millions of yen
12,313
18,639

%
-33.9
-3.8

Earnings per share

Millions of yen-2,224
2,672

Millions of yen-2,173
2,435

Net income%-29.2

Millions of yen-2,816
731

%
-59.2

Diluted earnings per share

Yen-31.898.32

FY2022
FY2021

Ordinary income
%
-27.0

Yen
8.19

(2)Non-consolidated Financial Position
Total assets
FY2022
FY2021
Reference: Shareholders' equity

Net assets

Millions of yen
25,94827,049FY2022: 16,826 million yen

Equity Ratio

Millions of yen
16,826
19,875
FY2021: 19,875 million yen

Net assets per share
%
64.8
73.5

Yen
190.36225.87<Reasons for differences in non-consolidated results from the results of the previous fiscal year>
In the current fiscal year, the Group changed the sales method of its mainstay business software from a multi-year lease contract to a monthly
subscription contract. As a result, differences in the amount of recognized sales compared with the previous fiscal year arose due to differences incontract methods.
※The financial results are outside the scope of audits by a certified public accountant or an auditing 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 theGroup and certain assumptions which are regarded as legitimate. The Group makes no warranty as to the achievability of what is described in thestatements. Actual results may differ from these forecasts due to various factors.
(Availability of earnings supplementary explanatory documents and information on earnings results briefings)
The Group plans to hold a briefing for institutional investors and analysts in an online live format on February 10, 2023. The materials used at
the meeting will be posted on its website.

○Table of Contents of the Attached Material
1.Overview of Operating Results, etc. .........................................................................................................................................

2(1) Overview of operating results for the current fiscal year ..........................................................................................

2(2) Overview of financial position for the current fiscal year .........................................................................................

3(3) Basic policy on profit distribution and dividends for the current and next fiscal years ......................................................

4

2.Basic policy on selection of accounting standards ....................................................................................................................

4

3.Consolidated financial statements and major notes ...................................................................................................................

5(1) Consolidated statements of financial position .....................................................................................................................

5(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income .........................................

6

Consolidated statements of income ..................................................................................................................................

6

Consolidated statements of comprehensive income .........................................................................................................

7(3) Consolidated statements of changes in equity .....................................................................................................................

8(4) Consolidated statements of cash flows ................................................................................................................................

10(5) Notes regarding consolidated financial statements .............................................................................................................

12(Notes on going concern) ..................................................................................................................................................

12(Segment information) ......................................................................................................................................................

12(Profits per share) ..............................................................................................................................................................

12(Significant subsequent events) ........................................................................................................................................

12

-1-

1. Overview of Operating Results, etc.
(1) Overview of operating results for the current fiscal year
① Qualitative information on financial Current management results
During the current fiscal year under (January 1, 2022 to December 31, 2022), COVID-19 restrictions were gradually lifted, leading tonormalization of social and economic activities. On the other hand, there were growing concerns about inflation in the world and reactionarychanges in policy of each country’s monetary authorities which may result in significant exchange rate fluctuations. Therefore, it wasnecessary to closely monitor the downside risks to the economy.
Amid these social conditions, in addition to the accelerating digitization of social infrastructures, corporate DX (digital transformation)needs were growing against the backdrop of strengthening investments to change products/services and business models. In Japanese mobility
industry, where many of the Group’s clients belong, there was a growing need for DX not only in terms of business process using digitaltechnology and operational efficiency of the work styles, but also in terms of reforming existing businesses and creating new businesses.
Based on its corporate philosophy of "Gratitude and Happiness," the Group continued its activities to contribute to its clients' business
continuity and business creation. At the same time, the Group focused on the two priority measures outlined in the Medium-Term Management
Plan (2022-2028): "Penetration of the Cloud-based products" and "Expansion of Services." During the current fiscal year, the Group placed “.cSeries,” a cloud-based software service that has evolved into a total management system, as its main product, and also supported clients tofurther improve DX by providing “Dencho.DX,” which is a cloud service for the revised Electronic Book Storage Act. In addition, the Groupequipped “.c Series” with the loan functions provided by Toyota Finance Corporation, formed a capital-and-business alliance with SALES GO
Corporation, and implemented joint development in AI field with Fujitsu Ltd.. Through these measures, the Group promoted the expansion ofits services with "Broadleaf Cloud Platform" as the starting point.
As a result of these efforts, progress was made as planned in the current fiscal year, which is the first year of the Medium-Term Management
Plan (2022-2028), and the base for the transition to a monthly subscription-type business model has been established.
The shift of mainstay products to “.c Series” will stabilize the Group's revenue, and the provision of new services such as “Dencho.DX” willlead to an increase in revenue over the medium to long term. Furthermore, the availability of “.c series” under a flexible pricing structure
resulted in favorable new contract acquisition, and the total number of clients increased.
In terms of costs, while upfront expenses for future business growth increased, such as investment in the development of services andstrengthening of the services provision infrastructure, the Group worked to improve the efficiency of sales promotion activities.
As a result, the Group's consolidated financial results for the current fiscal year were revenue of 13,833 million yen (down 33.0% year-onyear), operating loss of 2,897 million yen (operating income of 3,395 million yen in the previous fiscal year), loss before income taxes of 3,005
million yen (profit before income taxes of 3,233 million yen in the previous fiscal year), and loss attributable to owners of the parent of 2,431
million yen (profit attributable to owners of the parent of 2,173 million yen in the previous fiscal year).
The Group has a single segment of IT Services Business, but the breakdown of revenue by service category for the current fiscal year was asfollows.
(Millions of yen)
Category

FY2021(January 1, 2021
to December 31, 2021)

FY2022(January 1, 2022
to December 31, 2022)

YoY ratio

Cloud service

1,791

2,628

46.7%

Packaged system

18,860

11,205-40.6%

Total

20,652

13,833-33.0%

Cloud service
The category consists of usage fees for “.c Series” and other monthly subscription-type software, as well as usage fees or commissions
related to platforms for ordering auto repair parts.
From the current fiscal year, when the usage right (mostly 6 years) of packaged software “.NS Series” for auto maintenance shops and auto
body shops expires , the Group switched to “.c Series” in general. The Group also launched "Dencho.DX," a new cloud service for the revisedElectronic Book Storage Act, As a result, revenue from the Cloud service increased by 46.7% year on year.

-2-

Packaged system
The category consist of sales of “.NS Series” and other packaged software (lease contract or sell out), fees for ancillary services required forusing packaged software, and sales of PC and other devices and supplies.
Starting from the current fiscal year, the Group switched to the provision of “.c Series” for auto maintenance shops and auto body shops, as
described above. Accordingly, revenue from Cloud service increased, but revenue from Packaged system, which is recorded in a lump sum at
the time of sales, decreased significantly, resulting in a year-on-year decline of 40.6%.
② Outlook for the Next Fiscal Year
Consolidated earnings forecasts for FY2023 (January 1, 2023-December 31, 2023) are revenue of 15,000 million yen, operating loss of
2,700 million yen, loss before tax of 2,800 million yen, and loss attributable to owners of the parent of 2,400 million yen.
The monthly subscription software contract acquired in FY2022will be recorded as revenue for the full year in FY2023. In addition, theGroup expects revenue growth for cloud services to accelerate through the second half of the fiscal year, as existing clients will graduallyswitch to ".c Series" throughout the year. On the other hand, packaged system sales are expected to decline due to the progress in the transitionof mainstay products. However, because the increase in sales of Cloud service will offset the decrease, revenue for FY2023 is expected toincrease by 1,167 million yen from the previous fiscal year. In addition, the Group will strengthen sales promotions mainly for mainstay
products which will lead to sales growth, while working to improve the efficiency of SG&A expenses, etc. As a result, operating loss is
expected to decrease by 197 million yen from the previous fiscal year.
(2) Overview of financial position for the current fiscal year
① Financial position
Total assets at the end of the current fiscal year decreased by 940 million yen from the end of the previous fiscal year to 33,535 million yen(down 2.7% year-on-year). Current assets decreased by 1,849 million yen to 6,555 million yen (down 22.0% year-on-year), and non-current
assets increased by 909 million yen to 26,980 million yen (up 3.5% year-on-year). Current assets decreased mainly due to a decrease of 1,691
million yen in trade and other receivables. The increase in non-current assets was mainly due to increases of 1,223 million yen in intangible
assets, 409 million yen in deferred tax assets, and 123 million yen in other financial assets, despite decreases of 613 million yen in goodwill
and 235 million yen in property, plant and equipment.
Total liabilities at the end of the current fiscal year increased by 1,511 million yen from the end of the previous fiscal year to 9,873 million
yen (up 18.1% year-on-year). Current liabilities decreased by 930 million yen to 6,583 million yen (down 12.4% year-on-year), while noncurrent liabilities increased by 2,441 million yen to 3,291 million yen (up 287.3% year-on-year). Current liabilities decreased mainly due todecreases of 895 million yen in trade and other payables, 397 million yen in income taxes payable, and 210 million yen in short-term interestbearing debt, despite an increase of 572 million yen in contract liabilities. The increase in non-current liabilities was mainly attributable to a
2,540 million yen increase in long-term interest-bearing debt.
Total equity at the end of the current fiscal year decreased by 2,452 million yen from the end of the previous fiscal year to 23,662 million
yen (down 9.4% year-on-year). The main factors for the decrease in total equity were an increase of 157 million yen in other components ofequity, a decrease of 118 million yen in treasury shares, and a decrease of 2,832 million yen in retained earnings.
As a result, percentage of equity attributable to owners of the parent decreased by 5.2% from 75.7% at the end of the previous fiscal year to
70.5%.

-3-

② Cash flow
Cash and cash equivalents (hereinafter referred to as "cash") at the end of the current fiscal year decreased by 65 million yen from the end of
the previous fiscal year to 3,457 million yen. Cash provided by operating activities was 1,606 million yen, cash used in investing activities was
2,910 million yen, and cash provided by financing activities was 1,237 million yen.
The situation of each cash flow in the current fiscal year and the factors behind them are as follows.
(Cash flow from operating activities)
Net cash provided by operating activities was 1,606 million yen, down 57.5% from the previous fiscal year. This mainly reflected
depreciation and amortization expense of 2,696 million yen, a decrease in trade and other receivables of 1,778 million yen, an impairment lossof 615 million yen, and an increase in contract liabilities of 572 million yen, despite a decrease in cash due to loss before tax of 3,005 million
yen and a decrease in trade and other payables of 901 million yen.
(Cash flow from investment activities)
Cash used in investing activities was 2,910 million yen, down 14.1% from the previous fiscal year. This was mainly due to the acquisition of
intangible assets of 3,001 million yen, which outweighed the proceeds from collection of loans receivable of 67 million yen and proceeds fromsales of property, plant and equipment of 45 million yen.
(Cash flow from financing activities)
Cash provided by financing activities was 1,237 million yen (compared with net cash used of 108 million yen in the previous fiscal year).
This was mainly due to proceeds from long-term loans payable of 3,500 million yen, despite a net decrease in short-term loans payable of
1,002 million yen, repayments of lease liabilities of 864 million yen, and cash dividends paid of 414 million yen.
(3) Basic policy on profit distribution and dividends for the current and next fiscal years
The Group regards the return of profits to shareholders as an important management issue. Its basic policy is to distribute earnings inaccordance with business results while retaining the surplus required for business development and maintenance of financial soundness toincrease corporate value. The Group aims for a consolidated dividend payout ratio of 35% or more.
In addition, in order to enhance opportunities for returning profits to shareholders, the Group's basic policy is to pay dividends from retained
earnings twice a year, consisting of an interim dividend and a year-end dividend. Interim dividends are determined by the Board of Directors,
and year-end dividends are determined by the annual shareholders’ meeting.
Based on the above policy, the Group will pay an annual dividend of 1 yen per share for the current fiscal year.
The dividend forecast for the next fiscal year is undecided at this stage, and will be announced promptly when it becomes possible todisclose reasonable forecasts in light of the progress of the medium-term management plan announced on February 9, 2022 and the status ofretained earnings.

2. Basic policy on selection of accounting standards
The Group decided to voluntarily adopt International Financial Reporting Standards (IFRS) instead of the previous Japanese GAAP from theconsolidated financial statements in the financial report for the fiscal year ended December 31, 2016, with the aim of enhancing the convenience ofvarious stakeholders, including domestic and overseas shareholders and investors, by improving the international comparability of financial
information and expanding disclosures.

-4-3. Consolidated financial statements and major notes(1) Consolidated statements of financial position(Thousands of yen)
FY2021(As of December 31, 2021)

FY2022(As of December 31, 2022)

Cash and cash equivalents

3,522,045

3,456,772

Operating and other receivables

AssetsCurrent assets
4,293,360

2,602,057

Inventories

208,050

130,890

Other financial assets

85,000-

Other current assets

296,069

365,715

Total current assets

8,404,523

6,555,434

Non-current assets
Property, plant and equipment

1,273,532

1,038,983

Goodwill

11,802,504

11,189,504

Intangible assets

10,548,334

11,771,237

93,49083,012Other financial assets

1,241,649

1,364,416

Other non-current assets

238,413250,391

Deferred tax assets

873,530

1,282,511

26,071,452

26,980,055

34,475,975

33,535,490

3,567,899

2,672,827

Investments accounted for using equity method

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

354,403

926,1822,480,024

2,270,443

405,660

8,421

Other current liabilities

704,310704,634

Total current liabilities

7,512,295

6,582,508

Long-term interest-bearing debts

337,7212,877,710

Obligations for retirement pay

208,906

232,191

Provisional sum

143,903

142,292

Deferred tax liabilities

115,830-

Other non-current liabilities

43,23538,671

Total non-current liabilities

849,5963,290,865

8,361,891

9,873,373

Capital stock

7,147,905

7,147,905

Share premium

7,291,792

7,366,245

Treasury shares-3,285,446-3,167,193

Retained earnings

14,488,974

11,656,730

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-5-

470,859628,237

26,114,084

23,631,923-

30,194

26,114,084

23,662,116

34,475,975

33,535,490

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated statements of income(Thousands of yen)
FY2021(January 1, 2021
to December 31, 2021)
Revenue

FY2022(January 1, 2022
to December 31, 2022)

20,651,549

13,832,547

Cost of sales-5,753,263-5,345,873

Gross profit

14,898,285

8,486,674

Selling, general and administrative expenses-11,520,747-10,802,548

Other operating income

29,63734,042Other operating expenses-12,058-615,071

Operating profit (loss)

3,395,118-2,896,904

Finance income

84,704

11,468Finance costs-241,024-119,055

Equity in losses of affiliates-6,085-754

Profit (loss) before income taxes

3,232,712-3,005,245

Income tax-1,058,511

573,049

Profit (loss)

2,174,202-2,432,196

2,172,773-2,431,390

1,429

-806

2,174,202-2,432,196

Basic earnings (loss) per share (yen)

24.72-27.54

Diluted earnings (loss) per share (yen)24.32-27.54

Profit (loss) attributable to
Owners of the parent
Non-controlling interests
Profit (loss)

Profit (loss) per share-6-Consolidated statements of comprehensive income(Thousands of yen)
FY2021(January 1, 2021
to December 31, 2021)
Profit (loss)

FY2022(January 1, 2022
to December 31, 2022)

2,174,202-2,432,196

50,149108,901-22,297-4,12427,853

104,777-2,217

-94

873

7,050

-1,344

6,957

26,509111,733

2,200,710-2,320,463

2,199,281-2,319,656

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 other comprehensive income
Remeasurements of defined benefit plans
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 forusing 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

1,429

-806

Comprehensive income

2,200,710-2,320,463-7-

(3) Consolidated statements of changes in equity
FY2021 (January 1, 2021, to December 31, 2021)(Thousands of yen)
Equity attributable to owners of the parent
Other components of equity

Capital stock

Share premium

Treasury shares Retained earnings
Warrants

Balance as of January 1, 2021

Shares withrestriction ontransfer

Exchangedifferences ontranslating
foreign
operations

7,147,905

7,215,824-3,403,618

13,265,826

724,241-14,000-47,026

Profit---2,172,773---

Other comprehensive income

-

-

-

-

-

-

-1,344

Total comprehensive income

-

-

-

2,172,773---1,344

Disposal of treasury shares-

105,560

118,172--171,167--

Dividends----930,035---

Share-based payment transactions

-

-

-

2,708

219,142

0---29,592

-

-

-

-

-

-

-

-

-22,297---

Total transactions with owners-

75,968118,172-949,625

47,9750-Balance at December 31, 2021

7,147,905

7,291,792-3,285,446

14,488,974

772,216-14,000-48,370

Changes in ownership interest in
subsidiaries
Transfer from other components ofequity to retained earnings(Thousands of yen)
Equity attributable to owners of the parent
Other components of equity
Net change in fair value offinancial assets of equity Remeasurements ofnature measured at fairdefined benefit
value through otherplans
comprehensive income
Balance as of January 1, 2021

Non-controllinginterests

Total

Total equity

Total-289,136-

374,078

24,600,015

2,451

24,602,466

-

-

-

2,172,773

1,429

2,174,202

50,149-22,297

26,50926,509-26,509Total comprehensive income

50,149-22,297

26,5092,199,281

1,429

2,200,710

Disposal of treasury shares---171,167

52,565-52,565

Dividends----930,035--930,035

Share-based payment transactions--

219,142

221,850-

221,850----29,592-3,880-33,472-

22,29722,297---

Total transactions with owners-

22,29770,272-685,213-3,880-689,093

Balance at December 31, 2021

-238,987-

470,859

26,114,084-

26,114,084

ProfitOther comprehensive income

Changes in ownership interest in
subsidiaries
Transfer from other components ofequity to retained earnings-8-

FY2022 (January 1, 2022 to December 31, 2022)(Thousands of yen)
Equity attributable to owners of the parent
Other components of equity

Capital stock

Share premium

Treasury shares Retained earnings
Warrants

Balance at January 1, 2022

Shares withrestriction ontransfer

Exchangedifferences ontranslating
foreign
operations

7,147,905

7,291,792-3,285,446

14,488,974

772,216-14,000-48,370

Loss

-

-

-

-2,431,390

-

-

-

Other comprehensive income

-

-

-

-

-

-

6,957

-

-

-

-2,431,390

-

-

6,957

-

-

-

-

-

-

-

Purchase of treasury stock

-

-

-14

-

-

-

-

Disposal of treasury shares-

74,452

118,267--141,166-51,552-

Dividends----413,579---

Share-based payment transactions

-

-

-

16,849181,575

52,664-

Transfer from other components ofequity to retained earnings

-

-

-

-4,124---

Total transactions with owners-

74,452

118,253-400,854

40,4091,112-

Balance at December 31, 2022

7,147,905

7,366,245-3,167,193

11,656,730

812,624-12,888-41,414

Total comprehensive income
Changes due to acquisition of control
over subsidiaries(Thousands of yen)
Equity attributable to owners of the parent
Other components of equity
Net change in fair value offinancial assets of equity Remeasurements ofnature measured at fairdefined benefit
value through otherplans
comprehensive income
Balance at January 1, 2022

Non-controllinginterests

Total

Total equity

Total-238,987-

470,859

26,114,084-

26,114,084

-

-

-

-2,431,390-806-2,432,196

108,901-4,124

111,733

111,733-

111,733

108,901-4,124

111,733-2,319,656-806-2,320,463

-

-

-

-

31,00031,000Purchase of treasury stock

-

-

-

-14

-

-14

Disposal of treasury shares---192,718

2-

2

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

Share-based payment transactions--

234,238

251,087-

251,087

Transfer from other components ofequity to retained earnings

-

4,124

4,124

-

-

-

Total transactions with owners

-

4,124

45,645-162,505

31,000-131,505

Balance at December 31, 2022

-130,086-

628,237

23,631,923

30,194

23,662,116

Loss
Other comprehensive income
Total comprehensive income
Changes due to acquisition of control
over subsidiaries-9-(4) Consolidated statements of cash flows(Thousands of yen)
FY2021(January 1, 2021
to December 31, 2021)

FY2022(January 1, 2022
to December 31, 2022)

Cash flow from operating activities
Profit (loss) before income taxes

3,232,712-3,005,245

Depreciation and amortization expense

2,335,383

2,695,945-

615,000

Impairment loss
Share-based payment expense

279,313258,511

Finance costs (income)

163,181

107,587

6,085

754

Decrease (increase) in trade and other receivables-503,473

1,778,014

Decrease (increase) in inventories

147,991

77,215

Increase (decrease) in trade and other payables-41,533-900,556

Equity in loss (earnings) of affiliates

Decrease (increase) in prepaid expenses

6,860-68,619

Decrease (increase) in long-term prepaid expenses-28,025-60,101

Increase (decrease) in employees' bonuses payable-22,380

109

Increase (decrease) in contract liabilities-258,010

571,779

Increase (decrease) in consumption taxes payable-232,067

3,702

Others29,930-57,021

Subtotal

5,115,966

2,017,075

Interest received

5,434

1,238

Dividend received

3,775

4,066

-11,349-13,781

Income taxes refunded (paid)-1,331,269-402,262

Cash flow from operating activities

3,782,557

1,606,335-45,362-16,403

Interest expenses paid

Cash flow from investing activities
Acquisition of property, plant and equipment
Proceeds from sales of property, plant and equipment
Acquisition of intangible assets
Acquisition of newly consolidated subsidiaries-

45,320-3,452,483-3,000,908--5,000Loan advances-65,600-16,900

Collection of loans receivable

156,343

67,383

Payments for lease and guarantee deposits-13,031-615

Proceeds from collection of lease and guarantee deposits

19,093

4,470

Purchase of investments accounted for using equity method

-442

-

-

14,954

Proceeds from sale of investments accounted for using equity method
OthersCash flow from investing activities- 10 -

13,957-2,228-3,387,525-2,909,928

(Thousands of yen)
FY2021(January 1, 2021
To December 31, 2021)

FY2022(January 1, 2022
To December 31, 2022)

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

1,801,500-1,001,500-

3,500,000

Repayments of lease obligations-884,294-864,358

Cash dividends paid

-930,035-413,579-

31,000-33,472-

Proceeds from long-term debt

Capital contribution from non-controlling interests
Payments from changes in ownership interests in subsidiaries that do
not result in change in scope of consolidation
Purchase of treasury shares--14

Expenses related to commitment lines-62,044-14,983

Cash flow from financing activities-108,345

1,236,566

2,950

1,754

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

289,636-65,272

Cash and cash equivalents at beginning of period

3,232,409

3,522,045

Cash and cash equivalents at end of period

3,522,045

3,456,772- 11 -

(5) Notes regarding consolidated financial statements(Notes on the going concern)
Not applicable.
(Segment information)(1)

The outline of reportable segments
The Group only has a single segment of IT Services Business, but as relevant information, it discloses sales from the above products andservices in two categories: Cloud service and Packaged system.
Cloud service consist of usage fees for “.c Series” and other monthly subscription-type software, as well as usage fees or commissions
related to platforms for ordering auto repair parts.
Packaged system consists of sales of “.NS Series” and other packaged software (lease contract or sell out), fees for ancillary services
required for using packaged software, and sales of PC and other devices and supplies.
(2)

Segment revenues and results
This information is omitted because the Group only has a single business segment.

(Profits per share)
Basic and diluted earnings (loss) per share and the calculation basis are as follows:
FY2021(January 1, 2021
to December 31, 2021)
Profit (loss) attributable to owners of the parent (thousand yen)

FY2022(January 1, 2022
to December 31, 2022)

2,172,773-2,431,390--

2,172,773-2,431,390

87,904,113

88,301,684

1,439,447-

89,343,560

88,301,684

Basic earnings (loss) per share (yen)

24.72-27.54

Diluted earnings (loss) per share (yen)24.32-27.54

Adjustments to profit (thousand yen)
Diluted profit (loss) attributable to owners of the parent (thousand yen)
Average number of common shares outstanding during the period(shares)
Effect of dilutive potential common shares
Board benefit trust (shares)
Diluted average number of common shares outstanding during theperiod (shares)(NOTE) For the current fiscal year, the board benefit trust is antidilutive and therefore excluded from the calculation of diluted loss per share.
(Significant subsequent events)
Not applicable.

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