The following information was originally prepared and published by the Company in Japanese as it contains timely disclosure materials to besubmitted 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 Nine Months of the
Fiscal Year Ending December 31, 2018 [IFRS] (Consolidated)
November 2, 2018
Broadleaf Co., Ltd.
Stock Listing: Tokyo Stock Exchange 1st Section
Representative: Kenji Oyama, Representative Director, President & CEO
Scheduled Starting Date for Dividend Payment:–
Earnings Supplementary Explanatory Documents:
Yes
Earnings Results Briefing:
Yes (For institutional investors and analysts)(Amounts are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the Nine Months of the FY2018 (from January 1, 2018 to September 30, 2018)(1) Consolidated Results of Operations(Percentage below represents increase (decrease) from the same period of previous year)
Revenue

Operating profit

Millions of Yen

Q3 FY2018
Q3 FY2017% Millions of Yen

15,104 21.0
12,487 4.7% Millions of Yen

2,706 48.8
1,819 5.1

Basic earnings per share
Q3 FY2018

Profit before tax

Profit attributable toowners of parent

Profit% Millions of Yen

2,701 49.7
1,804 5.8%

Millions ofYen%

1,745 50.7
1,159 5.2

1,717
1,195

43.7
14.6

% Millions of Yen

1,745 50.7
1,159 5.2

Total comprehensive
incomeDiluted earnings per share
Yen

Yen

19.94
13.08

19.80
13.07

Q3 FY2017(Note) The Company conducted a 2-for-1 common stock split effective April 1, 2018. The basic earnings per share and the diluted earnings per share for Q3
FY2017 are calculated on the assumption that the said stock split was implemented at the beginning of the previous fiscal year.

(2) Consolidated Financial Position
Total assets

Equity attributable to owners ofparentTotal equity

Percentage of equity attributableto owners of parent

Millions of Yen

Millions of Yen

Millions of Yen%

27,15628,063

19,954
19,737

19,954
19,73773.5
70.3

End of Q3 FY2018
End of FY2017

2. Dividends
End of Q1

Dividends Per Share
End of Q3

End of Q2

Year-end

Total

Yen

Yen

Yen

Yen

Yen

‒
‒

11.00
5.50

‒
‒

11.00

22.00

FY2017FY2018FY2018 (Forecast)
6.50
12.00
(Note 1) Revisions to the latest forecast of dividends: No(Note 2) The Company conducted a 2-for-1 common stock split effective April 1, 2018. The dividends in FY2017 are based on shares before the stock split. The
annual dividend per share for FY2018 (forecast) which does not take the stock split into account is estimated to be 24 yen.

3. Earnings Forecast for FY2018 (from January 1, 2018 to December 31, 2018)(Percentages below represent increases (decreases) from the same period of the previous fiscal year.)
Revenue
Millions of Yen

Operating profit%

Millions of Yen

Profit attributable toowners of parent

Profit before tax%

Millions of Yen%

FY201821,200
16.5
3,900
29.5
3,880
29.8
(Note 1) Revisions to the latest forecast of earnings: No(Note 2) The forecasts for FY2018 take into account the impact of the 2-for-1 stock split effective April 1, 2018.

- 1 -Basic earnings per
share

Millions of Yen

%

Yen

2,500

29.4

28.58

* Notes(1) Changes in significant subsidiaries during the nine months ended September 30, 2018 (changes of specified subsidiaries withchange of the scope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates
1. Changes in accounting policies required by IFRS: Yes
2. Other changes in accounting policies: No
3. Changes in accounting estimates: No(Note) For details, see “2. Summary Consolidated Financial Statements and Major Notes, (6) Notes regarding the summary
consolidated financial statements (Changes in accounting policies)” on page 12 of the attached material.
(3) Number of shares outstanding (common stock)
1. Number of shares outstanding (including
treasury stock)

Q3 FY2018

97,896,800

FY2017

97,896,800

2. Number of shares of treasury stock

Q3 FY2018

10,592,336

FY2017

9,348,136

3. Average number of shares outstanding
87,541,102
88,586,115
Q3 FY2018
Q3 FY2017(during the period)(Note) The Company conducted a 2-for-1 stock split effective April 1, 2018. The number of shares outstanding, number ofshares of treasury stock and average number of shares outstanding are calculated on the assumption that the stock split
was implemented at the beginning of the previous fiscal year.
* The quarterly earnings report is outside the scope of audit procedures by certified public accountants and audit firm.
* Comment regarding appropriate usage of earnings forecast, and other special notes(Note on forward-looking statements)
The forward-looking statements such as earnings forecasts contained in this document are based on the information currently available
to the Company and certain assumptions which are regarded as legitimate. The Company makes no warranty as to the achievability ofwhat is described in the statements. Actual results may differ from these forecasts due to various factors.
(Availability of earnings supplementary explanatory documents and information on earnings results briefings)
The Company will hold a results briefing for institutional investors and analysts on Friday, November 2, 2018. A document to be usedin the briefing will be posted on the website.

- 2 -○Table of Contents of Attached Material
1. Qualitative Information on Operating Results, etc. for the Nine Months Ended September 30, 2018 ....................................
(1) Qualitative information on financial results .......................................................................................................................
(2) Qualitative information on financial position ....................................................................................................................
(3) Qualitative information on consolidated earnings forecast ................................................................................................

4
4
4
5

2. Summary Consolidated Financial Statements and Major Notes ..............................................................................................
(1) Summary consolidated statement of financial position ......................................................................................................
(2) Summary consolidated statement of income ......................................................................................................................
(3) Summary consolidated statement of comprehensive income .............................................................................................
(4) Summary consolidated statement of changes in equity ......................................................................................................
(5) Summary consolidated statement of cash flow ..................................................................................................................
(6) Notes regarding the summary consolidated financial statements .......................................................................................
(Notes on going concern assumption)................................................................................................................................
(Changes in accounting policies) .......................................................................................................................................
(Segment information) .......................................................................................................................................................

6
6
7
8
9
11
12
12
12
12

- 3 -

1. Qualitative Information on Operating Results, etc. for the Nine Months Ended September 30, 2018
(1) Qualitative information on financial results
In the first nine months of the fiscal year under review (January 1 through September 30, 2018), the Company posted revenueof 15,104 million yen (up 21.0% year on year). This was a result of growth in sales revenue, primarily due to the fact that thesales revenue of the Company’s systems for auto maintenance factories and database provision service has increased fromprevious third quarter, and the contribution of sales from Tajima Incorporated (“Tajima”), which was consolidated in July 2017.
Cost and expenses included cost of sales of 3,802 million yen (up 14.1% year on year) and selling, general and administrative
expenses of 8,618 million yen (up 17.3% year on year). This was chiefly attributable to an increase in the amount of goods
purchased due to growing sales and an increase in personnel expenses and higher expenses required for shareholder incentives
in addition to the impact of Tajima above.
As a result, operating profit stood at 2,706 million yen (up 48.8% year on year), profit before tax came to 2,701 million yen (up49.7% year on year), and profit attributable to owners of parent amounted to 1,745 million yen (up 50.7% year on year).
The Company has a single business segment, which consists of IT services. A breakdown of sales by business domain is shownin the table below.
(Unit: Millions of yen)
1st Nine Months of FY2017(From January 1 to
September 30, 2017)

1st Nine Months of FY2018(From January 1 to
September 30, 2018)

Year-on-year rate of change

7,783

9,824

26.2%

System Support

926

979

5.7%

Network Service

3,779

4,301

13.8%

Total

12,487

15,10421.0%

DomainBusiness Application
Software(2) Qualitative information on financial position(i) Analysis of financial position(Assets)
Total assets at the end of the third quarter of the consolidated fiscal year under review decreased 907 million yen from the endof the previous consolidated fiscal year, to 27,156 million yen. Current assets fell 1,921 million yen, to 9,479 million yen, andnon-current assets increased 1,015 million yen, to 17,678 million yen. The decrease in current assets was mainly attributable toa decrease in cash and cash equivalents of 1,597 million yen. The increase in non-current assets was caused chiefly by growth
in intangible assets of 1,024 million yen.
(Liabilities)
Liabilities fell by 1,123 million yen from the end of the previous consolidated fiscal year, to 7,202 million yen. Current
liabilities declined 708 million yen, to 6,770 million yen, and non-current liabilities decreased by 416 million yen, to 432
million yen. The main factor contributing to the decrease in current liabilities was a reduction in operating and other payablesof 2,379 million yen, which more than offset growth in contract liabilities of 1,771 million yen. The decrease in non-current
liabilities was mainly attributable to a decrease in long-term interest-bearing debt of 363 million yen.
(Equity)
Equity increased by 217 million yen from the end of the previous consolidated fiscal year, to 19,954 million yen. The increase
was chiefly attributable to an increase in retained earnings of 840 million yen, despite a rise in treasury shares of 766 million
yen.

- 4 -

(ii) Analysis of cash flows
Cash and cash equivalents (“cash”) at the end of the third quarter of the consolidated fiscal year under review declined 1,597
million yen from the end of the previous consolidated fiscal year, to 4,373 million yen.
The following is a description of the situation and major factors of each category of cash flows in the nine months ended
September 30, 2018.
(Net cash from (used in) operating activities)
Cash flows provided by operating activities stood at 2,132 million yen, mainly reflecting a profit before tax of 2,701 million
yen and depreciation and amortization expense of 573 million yen, which is partially offset by income taxes paid of 1,208
million yen.
(Net cash from (used in) investing activities)
Cash flows used in investing activities came to 1,490 million yen. The primary causes of this included an acquisition of
intangible assets of 1,442 million yen.
(Net cash from (used in) financing activities)
Cash flows used in financing activities were 2,234 million yen, chiefly attributable to cash dividends paid of 967 million yen,
the purchase of treasury shares of 1,006 million yen, and repayments of long-term loans payable of 497 million yen.
(3) Qualitative information on consolidated earnings forecast
There have been no changes made to the consolidated results forecast announced on August 3, 2018 for the fiscal year ending
December 31, 2018.

- 5 -2. Summary Consolidated Financial Statements and Major Notes(1) Summary consolidated statement of financial position(Unit: Thousands of Yen)FY2017(As of December 31, 2017)
AssetsCurrent assets
Cash and cash equivalents
Operating and other receivables
Inventories
Other current financial assets
Other current assets
Total current assets

Q3 FY2018(As of September 30, 2018)

5,970,318
4,984,981
128,353–
316,609
11,400,260

4,372,825
4,644,311
185,55650
276,153
9,478,894

424,747
11,739,040
2,982,588
57,0791,238,994
13,340206,881
16,662,670
28,062,930

435,781
11,739,040
4,007,083
39,1081,182,483
105,404
168,603
17,677,503
27,156,397

Liabilities and Equity
Liabilities
Current liabilities
Operating and other payables
Contract liabilities
Short-term interest-bearing debt
Income taxes payable
Other current financial liabilities
Other current liabilities
Total current liabilities

5,595,736–
645,323
568,415
83,140584,924
7,477,539

3,216,296
1,770,842
521,282
281,553
193,250
786,7876,770,010

Non-current liabilities
Long-term interest-bearing debt
Net defined benefit liability
Non-current provisions
Deferred tax liabilities
Total non-current liabilities
Total liabilities

461,122
227,131
139,786
19,927
847,967
8,325,505

98,452
199,623
134,196–432,272
7,202,282

EquityCapital stock
Share premium
Treasury shares
Retained earnings
Other components of equity
Total equity attributable to owners of parent
Total equity
Total liabilities and equity

7,147,905
7,116,269-2,736,155
8,009,349
200,056
19,737,424
19,737,424
28,062,930

7,147,905
7,181,262-3,501,927
8,848,915
277,961
19,954,115
19,954,115
27,156,397

Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Investments accounted for using equity method
Other non-current financial assets
Other non-current assets
Deferred tax assets
Total non-current assets
Total assets- 6 -(2) Summary consolidated statement of income(Unit: Thousands of Yen)
1st Nine Months of FY2017(From January 1, 2017
to September 30, 2017)

1st Nine Months of FY2018(From January 1, 2018
to September 30, 2018)

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Other operating income
Other operating expense
Operating profit
Finance income
Finance cost
Equity in loss of affiliates
Profit before tax
Income tax
Profit12,487,242-3,332,099
9,155,143-7,344,798
11,986-3,544
1,818,787
13,133-16,793-11,077
1,804,049-645,524
1,158,526

15,103,511-3,801,838
11,301,673-8,617,718
39,537-17,787
2,705,705
9,957-7,784-6,5812,701,297-955,871
1,745,426

Profit attributable to owners of parent

1,158,526

1,745,426

13.08
13.07

19.94
19.80

Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)- 7 -(3) Summary consolidated statement of comprehensive income(Unit: Thousands of Yen)
1st Nine Months of FY2017(From January 1, 2017
to September 30, 2017)
ProfitOther comprehensive income
Components that will not be reclassified to profit or loss
Net change in fair value of financial assets of equity
nature measured at fair value through othercomprehensive income
Remeasurements of defined benefit plans
Total components that will not be reclassified to
profit or loss
Components that may be reclassified to profit or loss
Exchange differences on translation of foreign
operations
Share of other comprehensive income of associates
accounted for using equity method
Total components that may be reclassified to profit
or loss
Total other comprehensive income, net of tax
Comprehensive income
Comprehensive income attributable to owners of parent- 8 -1st Nine Months of FY2018(From January 1, 2018
to September 30, 2018)

1,158,526

1,745,426

41,386-22,058–

8,603

41,386-13,455-10,377-11,573

5,247-3,089-5,130-14,662

36,257-28,117

1,194,783

1,717,309

1,194,783

1,717,309

(4) Summary consolidated statement of changes in equity
1st Nine Months of FY2017 (From January 1, 2017 to September 30, 2017)(Unit: Thousands of Yen)
Equity attributable to owners of parent
Capital stock
Balance as of January 1, 2017

Share premium

Treasury shares

Retained earnings

7,147,905

7,114,654-2,252,885

7,136,345

Profit–––1,158,526

Other comprehensive income

–

–

–

–

Total comprehensive income

–

–

–

1,158,526

Purchase of treasury shares––-530,475－

Disposal of treasury shares–-2,66334,044－

Dividend–––-1,049,308

Reclassification from sharepremium to retained earnings

–

750

–

-750

Reclassification from othercomponents of equity toretained earnings

–

–

–

-2,196

Other increases (decreases)

–

–

–

234

Total transactions with owners–-1,913-496,431-1,052,021

7,147,905

7,112,741-2,749,316

7,242,851

Balance as of September 30, 2017

(Unit: Thousands of Yen)
Equity attributable to owners of parent
Other components of equity
Net change in fairvalue of financial
Exchange
assets of equity
differences onnature measured attranslation offair value throughforeign operations
othercomprehensive
incomeWarrants

Balance as of January 1, 2017

Total equity

Total

Total

7,383

-37,586

43,37013,167

19,159,187

19,159,187

Profit––––1,158,526

1,158,526

Other comprehensive income–-5,13041,38636,25736,25736,257

Total comprehensive income–-5,13041,38636,257

1,194,783

1,194,783

Purchase of treasury shares

–

–

–

–

-530,475-530,475

Disposal of treasury shares

–

–

–

–

31,381

31,381Dividend

–

–

–

–

-1,049,308-1,049,308

Reclassification from sharepremium to retained earnings

–

–

–

–

–

–

Reclassification from othercomponents of equity toretained earnings

–

–

2,196

2,196

–

–

Other increases (decreases)

-234

–

–

-234

–

–

Total transactions with owners

-234

–

2,196

1,962

-1,548,402-1,548,402

Balance as of September 30, 2017

7,149

-42,716

86,95351,38618,805,567

18,805,567- 9 -1st Nine Months of FY2018 (From January 1, 2018 to September 30, 2018)(Unit: Thousands of Yen)
Equity attributable to owners of parent
Capital stock
Balance as of January 1, 2018

Share premium

Treasury shares

Retained earnings

7,147,905

7,116,269-2,736,155

8,009,349

Changes in accounting policies

–

–

–

52,729Balance after restatement of priorperiod’s financial results after error
corrections

7,147,905

7,116,269-2,736,155

8,062,078

Profit

–––1,745,426

Other comprehensive income

–

–

–

–

Total comprehensive income

–

–

–

1,745,426

Purchase of treasury shares––-1,005,603–

Disposal of treasury shares–

64,993239,830–

Dividends–––-967,192

Share-based payment transaction

–

–

–

–

Reclassification from othercomponents of equity to retained
earnings

–

–

–

8,603

Total transactions with owners
Balance as of September 30, 2018–

64,993-765,773-958,589

7,147,905

7,181,262-3,501,927

8,848,915(Unit: Thousands of Yen)

Equity attributable to owners of parent
Other components of equity

Exchangedifferences ontranslation offoreign
operations

Warrants

Balance as of January 1, 2018

Net change infair value offinancial assets
of equity nature Remeasurements
measured at fairof definedvalue throughbenefit plansothercomprehensive
incomeTotal equity

Total

Total

165,866-36,065

70,255–200,056

19,737,424

19,737,424

Changes in accounting policies

–

–

–

–

–

52,72952,729Balance after restatement of priorperiod’s financial results after error
corrections

165,866-36,065

70,255–200,056

19,790,153

19,790,153
1,745,426

Profit

–

–

–

–

–

1,745,426

Other comprehensive income–-14,662-22,058

8,603-28,117-28,117-28,117–-14,662-22,058

8,603-28,117

1,717,309

1,717,309

Purchase of treasury shares

–

–

–

–

–

-1,005,603-1,005,603

Disposal of treasury shares-8,829–––-8,829295,994

295,994

–

–

–

–

–

-967,192-967,192

Share-based payment transaction

123,454–––

123,454

123,454

123,454

Reclassification from othercomponents of equity to retained
earnings–––-8,603-8,603––

Total comprehensive income

Dividends

Total transactions with owners

114,625––-8,603106,022-1,553,347-1,553,347

Balance as of September 30, 2018

280,491-50,727

48,197–

277,961

19,954,115

19,954,115- 10 -

(5) Summary consolidated statement of cash flow
(Unit: Thousands of Yen)
1st Nine Months of FY2017(From January 1, 2017
to September 30, 2017)
Cash flows from operating activities
Profit before tax

1st Nine Months of FY2018(From January 1, 2018
to September 30, 2018)

1,804,049

2,701,297

477,806

573,480–

123,454

Finance income and costs

3,660-2,173Equity in loss (earnings) of affiliates

11,077

6,581

Depreciation and amortization expense
Share-based compensation expenses

Loss (gain) on sales of property, plant and equipment
and intangible assets
Decrease (increase) in operating and other receivables

1,467

–

127,841

335,416

Decrease (increase) in inventories-28,443-57,241

Increase (decrease) in operating and other payables-319,738-261,869

Increase (decrease) in employees' bonuses payable

111,535-23,385

Increase (decrease) in consumption taxes payable-40,612-552

Other, net

63,560-53,982

Subtotal

2,212,203

3,341,026

Interest received

1,156

387

Dividends received

1,549

1,597

Interest expenses paid

-6,173-3,421

Income taxes paid

-1,134,407-1,207,824

Cash flows from (used in) operating activities

1,074,329

2,131,765

Cash flows from investing activities
Acquisition of property, plant and equipment-41,553-68,199

50,407–

Acquisition of intangible assets-863,949-1,442,367

Acquisition of investments-15,000–-865,414–-11,670-30,10234,32325,224-10,010

24,958-1,722,866-1,490,486

Repayments of long-term loans payable-511,850-497,350

Repayments of lease obligations-31,338-43,590-1,049,308-967,192-530,475-1,005,603

31,381

297,157

Proceeds from sales of property, plant and equipment

Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Other, net
Cash flows from (used in) investing activities
Cash flows from financing activities

Cash dividends paid
Purchase of treasury shares
Proceeds from sales of treasury shares
Other, net-3,247-17,403

Cash flows from (used in) financing activities
Impact of exchange fluctuations for cash and cash
equivalents-2,094,837-2,233,981-4,940-4,791

Net increase (decrease) in cash and cash equivalents-2,748,314-1,597,493

Cash and cash equivalents at beginning of period

7,738,206

5,970,318

Balance of cash and cash equivalents at the end of thequarter

4,989,891

4,372,825- 11 -

(6) Notes regarding the summary consolidated financial statements(Notes on going concern assumption)
Not applicable.
(Changes in accounting policies)
Beginning in the first three months of the fiscal year, the Group has adopted IFRS 15 “Revenue from Contracts with Customers”(released in May 2014) and “Clarification to IFRS 15” (released in April 2016) (collectively referred to as “IFRS 15” below).
The Group retroactively applies IFRS 15 according to transitional measures and recognizes the cumulative effect of the start ofapplication as the correction of the balance of retained earnings at the beginning of the first three months of the fiscal year.
Due to the application of IFRS 15, the Group recognizes revenue by applying the following five steps, excluding interest,
dividend income, etc. based on IFRS 9 “Financial Instruments.”
Step 1: Identify the contract with a customer.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price to the performance obligations in the contract.
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.
Pursuant to the above, the Group recognizes revenue as it satisfies performance obligations in the contracts with customers at a
certain point or for a certain period.
The Group recognizes the portion of an increase in the costs for obtaining contracts with customers that is expected to be
recoverable as assets (referred to as “assets recognized from the costs for obtaining a contract with a customer” below). An
increase in costs for obtaining a contract with a customer is a cost incurred for the acquisition of a contract with a customer,
which would have not arisen without the acquisition of such a contract. Assets recognized from the costs for obtaining acontract with a customer are written down in equal amounts over five years according to the estimated term of a contract with acustomer.
As a result, other non-current assets and retained earnings increased by 76,000,000 yen and 52,729,000 yen, respectively, anddeferred tax assets decreased by 23,271,000 yen in the condensed quarterly consolidated statement of financial position at the
beginning of the first three months of the fiscal year in comparison to the case to which the previous accounting standards areapplied. The impact of the application of IFRS 15 on the profit and loss in the summary consolidated statement of income forthe first nine months of the fiscal year under review is negligible in comparison to the case to which the previous accounting
standards are applied.
Beginning the first three months of the fiscal year, advances received from customers, which were previously included in tradeand other payables, are presented as contract liabilities due to the application of IFRS 15.
As a result, contract liabilities increased by 1,770,842,000 yen and trade and other payables decreased by the same amount in
the summary consolidated statement of financial position at the end of the first nine months of the fiscal year under review incomparison to the case to which the previous accounting standards are applied.
(Segment information)
Since the Group has only a single business segment (IT services), the statement is omitted.

- 12 -