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 Statements for the Second Quarter of the
Fiscal Year Ending December 31, 2022 [IFRS] (Consolidated)
August 9, 2022
Broadleaf Co., Ltd
Stock listing:Prime Market of Tokyo Stock Exchange
Representative:
Kenji Oyama, Representative Director and President
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 2Q FY2022 (January 1, 2022 to June 30, 2022)(1) Consolidated Operating Results (Cumulative)(Percentage below represents increase (decrease) from the same period of previous year)
Revenue

2Q FY2022

Millions of
yen
6,520

2Q FY2021

9,937

Operating profit
Millions of
yen
-34.4
-1,398Millions ofyen-1,458

%

-2.9

-23.6

Millions ofyen-1,109%

1,239

Profit attributable to Total comprehensive
owners of the parent
incomeProfitMillions ofyen-1,109%1,243

Basic earnings per share

Profit before tax-23.2

Millions ofyen-1,083

%

796

-25.2

795

%

-25.4

856

%
-11.5

Diluted earnings per share

Yen

Yen

2Q FY2022-12.57-12.572Q FY2021

9.05

8.90

(2) Consolidated Financial Position
Total assets

Equity attributable to owners of Percentage of equity attributable
the parent
to owners of the parent

Total equity

Millions of yen

Millions of yen

Millions of yen%

2Q FY2022

33,07924,751

24,75174.8

FY2021

34,476

26,114

26,11475.7

2. Dividend Status
Dividend per share
End of 1Q

InterimEnd of 3Q

Year-end

Total

Yen

Yen

Yen

Yen

Yen

FY2021

-

4.00

-

4.70

8.70

FY2022

-

0.00
-

1.00

1.00

FY2022 (forecast)(NOTE)Revisions to the latest announced dividend forecasts: None
3. Consolidated Earnings Forecast for FY2022 (January 1, 2022 to December 31, 2022)(Percentage below represents increase (decrease) from the same period of previous year)
Revenue
Millions ofyen
12,700Operating profit%

Millions ofyen-4,000

Profit attributable toowners of the parent

Profit before tax%

Millions ofyen-4,100-38.5
FY2022(NOTE) Revisions to the most recently announced earnings forecasts: Yes%-

Millions ofyen-3,200

Basic earnings per share
%

Yen

-

-36.24

※ 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: None
③ Changes in accounting estimates: None

(3) Number of shares outstanding (common stock)① 1. Number of shares outstanding (including
treasury shares)

2Q FY2022

97,896,800 Shares

FY202197,896,800 Shares② 2. Number of shares of treasury shares

2Q FY2022

9,507,349 Shares

FY2021

9,901,018 Shares③ 3. Average number of shares outstanding(during the period)

2Q FY2022

88,212,462 Shares

2Q FY2021

87,810,924 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.
(Method of obtaining supplementary briefing materials on financial results)
The Company plans to hold a briefing for institutional investors and analysts in an online live format on August 9, 2022. The
materials used at the meeting will be posted on its website.

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○Table of Contents of the Attached Material
1. Qualitative Information on Consolidated Financial Results for the First Six Months Ended June 30, 2022 ...........................

2(1) Explanation of Operating Results .....................................................................................................................................

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

3(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements .............................................

3

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

4(1) Consolidated Statement 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) Consolidated Financial Statements ...................................................................................................................................

11(Notes on Going Concern) ................................................................................................................................................

11(Segment Information) ......................................................................................................................................................

11

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1. Qualitative Information on Consolidated Financial Results for the First Six Months Ended June 30, 2022
(1) Explanation of Operating Results
During the first six months of the current fiscal year (January 1, 2022 to June 30, 2022), COVID-19 restrictions was graduallylifted and the normalization of economic and social activities in Japan has progressed. On the other hand, under uncertain
situation in Russia and Ukraine, it is becoming necessary to closely monitor economic downside risks caused by the changes in
the financial and capital markets, rising raw material prices, and supply chain constraints.
Under such social conditions and also against the backdrop of promotion of digitalization of administrative procedures, efforts
for management reform using digital transformation (DX) by a company is accelerating. In the Japanese mobility industry, inwhich many of the Group's clients belong, efforts on DX are becoming more active not only in terms of operations, such as shift
to digital business processes and remote working styles, but also in terms of business expansion and creation.
Based on the Group’s corporate philosophy of "Gratitude and Happiness," it continues activities to contribute to the business
continuity and business creation of its clients. In the first six months of the current fiscal year, the Group began offering a cloudservice corresponding to the Revised Electric Book Storage Act. The Group also has been actively providing “.c Series,” a cloudbased software, which has evolved into a total management system, to clients in order to support the DX of their entire business.
Sales of the “.c Series” have progressed steadily as planned, and sales to new clients was especially strong. Sales of other softwareand ancillary services were also strong. Under these circumstances, the Group reduced costs by streamlining sales activities, etc.
As a result, in the first six months of the current fiscal year (January 1, 2022 to June 30, 2022), the Group posted revenue of
6,520 million yen (down 34.4% year on year), operating loss of 1,398 million yen (operating profit of 1,243 million yen in thesame period of the previous fiscal year), loss before tax of 1,458 million yen (profit before tax of 1,239 million yen in the same
period of the previous fiscal year), loss attributable to owners of the parent of 1,109 million yen (profit attributable to owners of
the parent of 795 million yen in the same period of the previous fiscal year).
The group only has a single business segment of the IT services, but the breakdown of revenues by service category is asfollows.
(Millions of yen)First six months of FY2021(January 1, 2021
to June 30, 2021)

First six months of FY2022(January 1, 2022
to June 30, 2022)

Cloud service

847

1,046

23.4 %

Packaged system

9,090

5,474

-39.8 %

Total

9,937

6,520

-34.4 %

Category-2-

YoY ratio

(2) Explanation of Financial Position(i) Analysis of financial condition(Assets)
Assets at the end of the second quarter of the current fiscal year decreased by 1,397 million yen from the end of the previous
fiscal year to 33,079 million yen. Current assets decreased by 2,095 million yen to 6,309 million yen, while non-current assets
increased by 699 million yen to 26,770 million yen. Current assets decreased mainly due to decreases in trade and otherreceivables of 1,775 million yen and cash and cash equivalents of 311 million yen. The increase in non-current assets was mainly
attributable to increases in intangible assets of 654 million yen and deferred tax assets of 227 million yen, which offset a decreasein property, plant and equipment of 121 million yen.
(Liabilities)
Liabilities at the end of the second quarter of the current fiscal year decreased by 34 million yen from the end of the previous
fiscal year to 8,328 million yen. Current liabilities increased by 179 million yen to 7,691 million yen, while non-current liabilities
decreased by 213 million yen to 637 million yen. Current liabilities increased mainly due to an increase in short-term interestbearing debt of 1,509 million yen, despite decrease in trade and other payables of 845 million, decrease in income taxes payableof 398 million yen, and decrease in other current liabilities of 45 million yen. The decrease in non-current liabilities was mainly
due to decrease in deferred tax liabilities of 116 million yen and decrease in long-term interest-bearing debt of 99 million yen.
(Equity)
Shareholders' equity at the end of the second quarter of the current fiscal year decreased by 1,363 million from the end of theprevious fiscal year to 24,751 million yen. The decrease in shareholders' equity was mainly due to a decrease in retained earningsof 1,515 million yen.
(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 decreasedby 311 million yen from the end of the previous fiscal year to 3,212 million yen.
The situation of each cash flow and its factors in the second quarter of the current fiscal year are as follows.
(Cash flow from operating activities)
Cash provided by operating activities was 460 million yen (a-year-on-year decrease of 57.4%). This was mainly due to a loss
before tax of 1,458 million yen, a decrease in trade and other payables of 844 million yen, and income taxes paid of 394 million
yen, offset by a decrease in trade and other receivables of 1,785 million yen and depreciation and amortization expense of 1,309
million yen.
(Cash flow from investment activities)
Cash used in investing activities was 1,424 million yen (a-year-on-year decrease of 9.0%). This was mainly due to purchaseof intangible assets of 1,505 million yen, despite proceeds from collection of loans receivable of 65 million yen.
(Cash flow from financing activities)
Net cash provided by financing activities was 649 million yen (a year-on-year increase of 20.9%). This was mainly due to a
net increase in short-term loans payable of 1,501 million yen, which was partially offset by repayments of lease liabilities of 428
million yen and cash dividends payout of 414 million yen.
(3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements
As stated in the Medium-Term Management Plan (2022-2028) announced on February 9, 2022, the Group will promotebusiness expansion through the provision of various cloud services and aim to become a "leading SaaS company" and "one-ofa-kind platform company."
The consolidated earnings forecast for the fiscal year ending December 31, 2022 has been revised upward from the forecast
announced on February 9, 2022. Sale of cloud-based software services, which is a key measure of the medium-term
management plan, remains unchanged, and the Company expects steady progress to continue from third quarter onward bycontinuing to focus on acquiring contracts from new clients. In addition, sale of packaged systems went ahead of schedule in
the first six months of the current fiscal year, so the Company increased the planned number of sales for the full year. It will
also continue to reduce operating expenses. As a result of these factors, the Groups revised revenue, operating loss , loss before
tax, and loss attributable to owners of the parent for the consolidated earnings forecast for the full fiscal year (January 1, 2022
to December 31, 2022). For details, please refer to the "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 9,
2022.

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2. Consolidated Financial Statements and Major Notes(1) Consolidated Statements of Financial Position
Previous consolidated fiscal year
(As of December 31, 2021)
AssetsCurrent assets
Cash and cash equivalents
Operating and other receivables
Inventories
Other financial assets
Other current assets(Thousands of yen)
End of 2nd quarter of the current
fiscal year
(As of June 30, 2022)

3,522,045
4,293,360
208,050
85,000296,069

3,211,517
2,518,714
165,020
414,101

8,404,523

6,309,352

1,273,532
11,802,504
10,548,334
93,4901,241,649
238,413873,530

1,152,059
11,802,504
11,202,065
67,207
1,267,920
177,249
1,100,983

26,071,452

26,769,987

34,475,975

33,079,340

3,567,899
354,4032,480,024
405,660
704,3102,722,813
312,559
3,988,972
7,494
659,269

7,512,295

7,691,106

Non-current liabilities
Long-term interest-bearing debts
Obligations for retirement pay
Provisional sum
Deferred tax liabilities
Other non-current liabilities

337,721208,906
143,903
115,830
43,235

238,854
217,872
144,229
35,897

Total non-current liabilities

849,596

636,852

8,361,891

8,327,959

7,147,905
7,291,792-3,285,446
14,488,974
470,859

7,147,905
7,366,133-3,167,193
12,973,767
430,770

Total equity attributable to owners of the parent

26,114,084

24,751,381

Total equity

26,114,084

24,751,381

34,475,975

33,079,340

Total current assets
Non-current assets
Property, plant and equipment
Goodwill
Intangible assets
Investments accounted for using equity method
Other financial assets
Other non-current assets
Deferred tax assets
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
Other current liabilities
Total current liabilities

Total liabilities
EquityCapital stock
Share premium
Treasury shares
Retained earnings
Other components of equity

Total liabilities and equity-4-(2) Consolidated Statements of Income(Thousands of yen)First six months of FY2021(January 1, 2021
to June 30, 2021)

First six months of FY2022(January 1, 2022
to June 30, 2022)

Revenue

9,937,265

6,520,351

Cost of sales-2,866,930-2,458,970

Gross profit
Selling, general and administrative expenses
Other operating income
Other operating expenses

7,070,335-5,844,755
24,525-7,222

4,061,382-5,478,214
19,152-620

Operating profit (loss)
Finance income
Finance costs
Equity in losses of affiliates

1,242,882
22,173-24,460-1,313-1,398,300
18,735-61,613-16,559

Profit (loss) before tax
Income tax

1,239,283-442,790-1,457,738
349,079

Profit (loss)

796,492-1,108,659

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

795,063
1,429-1,108,659-

796,492-1,108,659

9.05
8.90

-12.57-12.57

Profit (loss)
Profit (loss) per share
Basic earnings (losses) per share (yen)Diluted earnings (losses) per share (yen)-5-(3) Consolidated Statements of Comprehensive Income

Profit (-)

First six-month period ofprevious fiscal year
(January 1, 2021
To June 30, 2021)
796,492(Thousands of yen)First six-month period of
fiscal year under review(On January 1, 2022
From June 30, 2022)-1,108,659

61,437

20,66561,437

20,665-3,153-2,527

1,268

2,565

-

4,486

-1,885

4,523

59,552

25,188856,044-1,083,471

854,615
1,429-1,083,471-

856,044-1,083,471

Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in fair value of equity financial assets
measured at fair value through other comprehensive
incomeTotal 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 othercomprehensive income of associates accounted for using
the equity method
Total items that may be reclassified to profit or loss
Total other comprehensive income, net of tax
Comprehensive income
Comprehensive income attributable to
Owners of the parent
Non-controlling interests
Comprehensive income-6-(4) Consolidated Statements of Changes in Equity
First six months of FY2021 (January 1, 2021 to June 30, 2021)(Thousands of yen)
Equity attributable to owners of the 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--171,167-56,000

Dividends----578,052--

Share-based payment transactions

-

-

-

7,794

99,48028,000Changes 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 the 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---227,167-3,434--3,434

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

Share-based payment transactions--

127,480

135,274-

135,274

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

-7-

Total

Total

First six months of FY2022 (January 1, 2022 to June 30, 2022)(Thousands of yen)
Equity attributable to owners of the parent
Other components of equity
Capital stockSharepremium

TreasurysharesRetainedearnings

7,147,905

7,291,792-3,285,446

14,488,974

772,216-14,000

Loss

-

-

-

-1,108,659--

Other comprehensive income

-

-

-

-

-

-

Total comprehensive income

-

-

-

-1,108,659--

Purchase of treasury shares

-

-

-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

Balance as of January 1, 2022

Total transactions with owners
Balance as of June 30, 2022

Shares withrestriction ontransfer

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

Exchangedifferencesontranslating
foreign
operations

Net change
in fair valueof financial
assets ofequitynaturemeasured atfair value
throughothercomprehensi
ve 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 shares

-

-

-

-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
Loss
Other comprehensive income

Total transactions with owners
Balance as of June 30, 2022

-8-

Total equity

Total

Total

(5) Consolidated Statements of Cash Flows(Thousands of yen)First six months of FY2021(January 1, 2021
to June 30, 2021)

First six months of FY2022(January 1, 2022
to June 30, 2022)

Cash flow from operating activities
Profit (loss) before tax

1,239,283-1,457,738

Depreciation and amortization expense

1,120,233

1,309,241

Share-based payment expense

124,044

127,331

Finance costs (income)

2,286

42,878Equity in loss (earnings) of affiliates

1,313

16,559Decrease (increase) in trade and other receivables

30,4691,785,131

Decrease (increase) in inventories

171,272

43,067

Increase (decrease) in trade and other payables-478,315-844,128

Decrease (increase) in prepaid expenses-118,708-111,872

Decrease (increase) in long-term prepaid expenses-71,41338,872

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

48

Increase (decrease) in contract liabilities-156,938-41,843

Increase (decrease) in consumption taxes payable-211,547-10,326

Others683-37,936

Subtotal

1,633,161

859,284

1,423

188

Interest received
Dividend received

2,033

2,130

Interest expenses paid

-5,395-6,843

Income taxes paid (refunded)-551,517-394,407

Cash flow from operating activities

1,079,705

460,352-24,781-6,528Cash flow from investing activities
Acquisition of property, plant and equipment
Proceeds from sales of property, plant and equipment

-

6,995

-1,596,597-1,504,670

-300

-300

Collection of loans receivable

50,65865,430

Payments for lease and guarantee deposits-7,488-297

Proceeds from collection of lease and guarantee deposits

7,587

856

-

14,626

6,655--1,564,267-1,423,888

Acquisition of intangible assets
Loan advances

Proceeds from sale of investments accounted for using
equity method
OthersCash flow from investing activities-9-(Thousands of yen)First six months of FY2021(January 1, 2021
to June 30, 2021)

First six months FY2022(January 1, 2022
to June 30, 2022)

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

1,652,000

1,501,000

Repayments of lease obligations-448,722-428,327

Cash dividends paid

-578,052-413,579--14

Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation-33,472-

Expenses related to commitment lines-54,501-9,777

Cash flow from financing activities

Purchase of treasury shares

537,252

649,303

Impact of exchange fluctuations for cash and cash
equivalents

2,069

3,706

Net increase (decrease) in cash and cash equivalents

54,759-310,528

Cash and cash equivalents at beginning of period

3,232,409

3,522,045

Balance of cash and cash equivalents at end of period

3,287,168

3,211,517- 10 -

(6) Notes regarding 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.

- 11 -