Note) This translation may be used for reference purposes only. This English version is not an official translation of
the original Japanese document. In cases where any differences occur between the English version and the original
Japanese version, the Japanese version shall prevail.

Summary of Financial Statements for the First Halfof the Fiscal Year Ending December 31, 2016
[Japanese GAAP](Non-consolidated)
July 28, 2016

Broadleaf Co., Ltd.
Stock Listing:Stock Code:
Representative:
Scheduled Submission Date for Quarterly Report:
Scheduled Starting Date for Dividend Payment:
Earnings Supplementary Explanatory Documents:
Earnings Results Briefing:

Tokyo Stock Exchange 1st Section
3673 URL: http://www.broadleaf.co.jp/
Kenji Oyama, Representative Director, President & CEO
August 12, 2016
September 12, 2015
Yes
Yes (For institutional investors and analysts)(Amounts are rounded down to the nearest million yen.)

1. Financial Results for the 1st Half of the FY2016 (from January 1, 2016 to June 30, 2016)(Percentage below represents increase (decrease) from the same period of previous year.)(1) Results of Operations
Net Sales
Operating Income
Ordinary Income
Net Income
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

8,196
8,325

-1.5
-8.3

920
1,008

-8.7
-45.5

928
996

-6.8
-45.5

622
476

30.7
-49.5

1st Half, FY2016
1st Half, FY2015

Earnings Per Share
1st Half, FY2016
1st Half, FY2015

Diluted Earnings Per Share
Yen

Yen

25.74
18.97

25.73
18.93

(2) Financial Position
Total Asset

Millions of Yen%

25,47325,565

19,30919,38575.7
75.7

End of 1st Half, FY2016
End of FY2015(Reference) Shareholders’ Equity

Shareholders’ Equity Ratio

Net Asset

Millions of Yen

End of 1st Half, FY2016: 19,279 Million Yen

End of FY2015: 19,356 Million Yen

2. Dividends
End of Q1

Dividends Per Share
End of Q3

End of Q2

Year-end

Total

Yen

Yen

Yen

Yen

Yen

-

12.50
17.50

-

12.50

25.00

-

12.50

30.00

FY2015FY2016FY2016 (Forecast)(Note) Revisions to the latest forecast of dividends: No
Breakdown of Dividends Per Share at the End of Q2 FY2016 : Ordinary dividend 12.50 yen
Commemorative dividend 5.00 yen

3. Earnings Forecast for FY2016 (from January 1, 2016 to December 31, 2016)(Percentage below represents increase from the same period of previous year.)

Net Sales
FY2016

Operating Income

Millions of Yen%

18,000

7.0

Millions of Yen(Note) Revisions to the latest forecast of earnings: No%

3,000 19.3

Ordinary Income
Millions of Yen

Earnings
Per Share

Net Income%

Millions of Yen%

Yen

2,970 19.1

1,620

29.4

67.44

* Notes(1) Adoption of special accounting methods for preparation of quarterly financial statements: No(2) Changes in accounting policies, changes in accounting estimates and restatement of corrections
1. Changes in accounting policies in association with revision in accounting standards: No
2. Other changes in accounting policies: No
3. Changes in accounting estimates: No
4. Restatement of corrections: No(3) Number of shares outstanding (common stock)
1. Number of shares outstanding
Q2 FY2016(including treasury stock)
2. Number of shares of treasury stock

Q2 FY2016

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

Q2 FY2016(Shares)

24,474,200 FY2015
609,184

FY201524,182,833 Q2 FY2015

25,234,200
1,030,884
25,111,152* Indication of quarterly review procedure implementation status
This quarterly earnings report is not subject to quarterly review procedures based upon the Financial Instruments
and Exchange Act. Thus, at the time of disclosure of the financial results, the quarterly financial statement review
procedures based upon the Financial Instruments and Exchange Act have not been completed.
* 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 of what is described in the statements. Actual results may differ from these
forecasts due to various factors.

Broadleaf Co., Ltd. (3673)
Summary of Financial Statements for the 1st Half of the FY2016 (Non-consolidated)

Table of Contents of Attached Material
1. Qualitative Information on Operating Results, etc. for the Three Months Ended June 30, 2016 ••••••••••••••••••• 2(1) Qualitative information on financial results •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 2(2) Qualitative information on financial position •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 3(3) Qualitative information on earnings forecast ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 3
2. Matters Related to Summary Information (Notes) •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 4(1) Application of specific accounting treatment to the preparation of quarterly financial statements •••••••••••••• 4(2) Changes in accounting principles and changes or restatements of accounting estimates ••••••••••••••••••••••••• 4
3. Financial Statements •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••5(1) Balance sheet •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••5(2) Statement of income •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 7(3) Statement of cash flow ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 8(4) Notes to financial statements •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 9(Notes to going concern assumptions) •••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 9(Notes to significant changes in the stockholders’ equity ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 9
4. Supplementary Information ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••10- 1 -Broadleaf Co., Ltd. (3673)
Summary of Financial Statements for the 1st Half of the FY2016 (Non-consolidated)

1. Qualitative Information on Operating Results, etc. for the Six Months Ended June 30, 2016
(1) Qualitative information on financial results
In the first six months of the fiscal year ending December 31, 2016, restrained consumer spending continued in theJapanese economy despite evidence of an improvement in corporate earnings and employment thanks to theeconomic and monetary policies of the government and the Bank of Japan. However, economic prospects remained
unclear given factors such as the reduced growth of China and other emerging economies in Asia, concerns over an
economic slowdown in resource-rich countries, and the impact of volatility in the financial market.
In the information service industry, to which the Company belongs, IT investments by companies remained firm,
particularly those in manufacturing in addition the financial and public service sectors, but a cautious view on theeconomy was observed in various industries because of the economic uncertainty. Overall, the business climate
remained generally solid because IT investments were expected to increase mainly in strategic areas such as big
data, IoT, cloud, and security.
In this business environment, the Company is enhancing its measures to increase the number of customers of its
applications, such as the .NS Series and CarpodTab, a tablet-type business support tool, and working for the industry
standardization of BL Parts Order System, an electronic order service for auto parts, with the aim of expanding thecustomer base and changing the revenue structure. The Company is also promoting efforts to provide higher valueadded services for customers by successively renovating the industry-specific applications the Company offers tocustomers, strengthening and enhancing automobile-related database, introducing an EC site for auto repair parts
into the market, and developing automobile-related data analytical services.
As a result, net sales in the first six months of the fiscal year under review decreased 1.5% year on year, to 8,196
million yen. In terms of profits and losses, operating income was reduced by 8.7% year on year, to 920 million yen,and ordinary income fell by 6.8% year on year, to 928 million yen, due to the decline in net sales. Net income stoodat 622 million yen (up 30.7% year on year) as a result of posting compensation for damage received as extraordinary
income.
The Company has a single business segment, which consists of IT services. A breakdown of sales by businessdomain is shown in the table below.
(Unit: Millions of yen)
1st Half, FY2016

1st Half, FY2015(From Jan. 1 to Jun. 30,
2016)(From Jan. 1 to Jun. 30,
2015)

5,293

5,644

-6.2%

System Support

633

634

-0.2%

Network Service

2,270

2,046

10.9%

8,196

8,325

-1.5%

DomainBusiness Application
Software

Total

- 2 -

Year-on-year rate ofchangeBroadleaf Co., Ltd. (3673)
Summary of Financial Statements for the 1st Half of the FY2016 (Non-consolidated)(2) Qualitative information on financial positiona. Assets, liabilities, and net assets
Total assets at the end of the second quarter under review declined 92 million yen from the end of the previous fiscal
year, to 25,473 million yen.
This decline was largely attributable to a decrease in goodwill of 334 million yen and accounts receivable-trade of
278 million yen, despite an increase of 497 million yen in cash and deposits.
Liabilities fell by 16 million yen from the end of the previous fiscal year, to 6,163 million yen. This was achieved
primarily by reducing 329 million yen in long-term loans payable and 156 million yen in accounts payable-trade,
despite an increase of 505 million yen in income taxes payable, etc.
Net assets fell by 76 million yen from the end of the previous fiscal year, to 19,309 million yen. This was chiefly
attributable to a decline of ¥55 million in valuation difference on available-for-sale securities.
b. Cash flow
In the first six months of the fiscal year under review, cash and cash equivalents (“Cash”) increased 497 million yen
from the end of the previous fiscal year, to 8,882 million yen. The situations for each type of cash flow and thecontributing factors are as follows:(Cash flow from operating activities)
Net cash provided by operating activities was 1,928 million yen. Key factors behind this increase included income
before income taxes of 1,179 million yen, amortization of goodwill of 334 million yen, and depreciation of 296 million
yen. Major factors contributing to the decrease included a drop in accounts payable-trade of 156 million yen andincome taxes paid of 108 million yen.
(Cash flow from investing activities)
Net cash used in investing activities was 440 million yen. The main factors behind the decrease included purchaseof intangible fixed assets of 326 million yen and purchase of investment securities of 99 million yen.
(Cash flow from financing activities)
Net cash used in financing activities was 990 million yen. The primary factors for this decrease included purchase oftreasury stock of 364 million yen, repayment of long-term loans payable of 329 million yen, and cash dividends paidof 303 million yen.
(3) Qualitative information on earnings forecast
The results forecasts for the fiscal year ending December 31, 2016 announced on February 10, 2016 have not beenchanged.

-3-

Broadleaf Co., Ltd. (3673)
Summary of Financial Statements for the 1st Half of the FY2016 (Non-consolidated)

2. Matters Related to Summary Information (Notes)(1) Application of specific accounting treatment to the preparation of quarterly financial statements
Not applicable(2) Changes in accounting principles and changes or restatements of accounting estimates
Not applicable-4-

Broadleaf Co., Ltd. (3673)
Summary of Financial Statements for the 1st Half of the FY2016 (Non-consolidated)

1. Financial Statements(1) Balance sheet(Unit: Thousands of Yen)

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
MerchandiseWork in process
Supplies
Prepaid expenses
Deferred tax assets
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
SoftwareTotal intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Investments in capital of subsidiaries andassociates
Long-term loans receivable from subsidiaries
and associates
Long-term loans receivable from employees
Claims provable in bankruptcy, claims
provable in rehabilitation and other
Long-term prepaid expenses
Lease and guarantee deposits
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-5-

FY2015(As of Dec. 31, 2015)

Q2 FY2016(As of Jun. 30, 2016)

8,384,656
68,9812,660,888
215,153
4,509
12,821
166,386
201,544
1,289,046
34,054-4,75813,033,282

8,882,625
56,666
2,382,828
83,404
11,362
239,178
227,790
1,299,484
27,940-3,551
13,207,728

457,944431,350

9,362,268
1,246,711
10,608,979

9,027,902
1,311,696
10,339,598

644,322
203,859

680,947
203,859

163,625

163,625

60,00060,000-4,451

13,712

13,90323,090365,272
5,560-13,712
1,465,730
12,532,655
25,565,938

10,661
361,135
5,043
5,560-14,781
1,494,407
12,265,355
25,473,084

Broadleaf Co., Ltd. (3673)
Summary of Financial Statements for the 1st Half of the FY2016 (Non-consolidated)(Unit: Thousands of Yen)

Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term loans payable
Lease obligations
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Provision for bonuses
Provision for compensation for damage
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Asset retirement obligations
Deferred tax liabilities
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Total valuation and translation adjustments
Subscription rights to shares
Total net assets
Total liabilities and net assets-6-

FY2015(As of Dec. 31, 2015)

Q2 FY2016(As of Jun. 30, 2016)

480,270624,000
32,6412,396,358
169,794
118,444
67,38830,24474,681
278,406
34,612
31,201
4,338,044

324,069
624,000
31,5632,301,560
145,676
624,014100,905
60,64838,938360,524
26,37531,201
4,669,477

1,675,160
51,126
112,041
3,603
1,841,931
6,179,976

1,345,970
35,905112,322
1,494,197
6,163,675

7,147,905
7,147,905
6,362,772-1,322,701
19,335,880

7,147,905
7,147,905
5,720,539-701,467
19,314,881

20,489-35,065

20,48929,592
19,385,961
25,565,938-35,065
29,592
19,309,408
25,473,084

Broadleaf Co., Ltd. (3673)
Summary of Financial Statements for the 1st Half of the FY2016 (Non-consolidated)(2) Statement of income(Unit: Thousands of Yen)

1st Half, FY2015(From Jan. 1, 2015
to Jun. 30, 2015)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Compensation income
Gain on investments in partnership
Other
Total non-operating income
Non-operating expenses
Interest expenses
Provision for loss compensation
Commission fee
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Damages received
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary loss
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income-7-

1st Half, FY2016(From Jan. 1, 2016
to Jun. 30, 2016)

8,325,420
2,391,895
5,933,524
4,925,475
1,008,049

8,196,815
2,475,438
5,721,376
4,800,916
920,460

1,048
287
10,852
3,976
7,469
23,632

878
3,819
2,505
10,81918,022

1,620
15,907
15,0002,607
35,135996,547

5,541
2,242
1,851
9,635
928,847

6,430
6,430

250,925
250,925

228
228
1,002,749
409,804
116,646
526,451476,298600
600
1,179,172
585,414-28,805
556,609622,562

Broadleaf Co., Ltd. (3673)
Summary of Financial Statements for the 1st Half of the FY2016 (Non-consolidated)(3) Statement of cash flowst

1 Half, FY2015(From Jan. 1, 2015
to Jun. 30, 2015)
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation
Amortization of goodwill.
Increase (decrease) in provision for bonuses
Interest and dividends income
interest expense
Commission fee
Loss (gain) on sales of property, plant and equipment
Compensation for damage received
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Decrease (increase) in accounts receivable - other
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued expenses
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Compensation for damage received
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investment activities
Payments of loans receivable from subsidiaries andassociates
Purchase of investment securities
Proceeds from sales of property, plant and equipment
Purchase of property, plant and equipment
Purchase of Intangible assets
Proceeds from collection of lease and guarantee deposits
Other, net
Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from sales of treasury shares
Purchase of treasury shares
Cash dividends paid
Purchase of Commission fee
Repayments of lease obligations
Other, net
Net cash provided by (used in) financing activities
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Period
Cash and Cash Equivalents at End of Period-8-(Unit: Thousands of Yen)
1st Half, FY2016(From Jan. 1, 2016
to Jun. 30, 2016)

1,002,749
313,070
334,366-83,258-1,335
1,620
15,000-6,430-1,179,172
296,887
334,366
82,117-4,697
5,541-250,925-207,737

290,375

23,406-66,305
31,99367,300-189,322-377,928
857,190
1,335-3,149-1,533,271-677,893

137,717-10,438-156,201-90,241-24,081-2,848
1,786,744
4,697-5,571
250,925-108,067
1,928,727-60,000-

6,430-69,191-352,221
27,441-3,995-451,536-99,855-14,086-326,790
7,536-7,258-440,454

2,500,000-769,000
16,900-1,748,103-262,216-15,000-14,025-1,650-293,094-1,422,524
10,671,694
9,249,170-329,190
24,513-364,680-303,395-16,298-1,253-990,303
497,969
8,384,656
8,882,625

Broadleaf Co., Ltd. (3673)
Summary of Financial Statements for the 1st Half of the FY2016 (Non-consolidated)(4) Notes on financial statements(Notes on going concern assumptions)Not applicable(Notes on substantial changes in the stockholders’ equity)(Cancellation of treasury stock)
The Company resolved at the meeting of the Board of Directors held on February 10, 2016 to cancel
treasury stock, and canceled 760,000 shares of common stock as of March 2, 2016. As a result, treasury
stock and retained earnings decreased 961,400 thousand yen during the first six months of the fiscal year
under review.

-9-

Broadleaf Co., Ltd. (3673)
Summary of Financial Statements for the 1st Half of the FY2016 (Non-consolidated)

2. Supplementary Information
Current Fiscal Year (From January 1, 2016 to December 31, 2016)(Unit: Millions of Yen)

Fiscal Year Ending December 31, 2016
1st Half
ResultNet Sales

Ratio toNet Sales

YoY rateof change

Progressrate

Full-year
forecast

8,196

100.0%

-1.5%

45.5%

18,000

5,293

64.6%

-6.2%

45.2%

11,700

System Support

633

7.7%

-0.2%

50.7%

1,250

Network Service

2,270

27.7%

10.9%

45.0%

5,050

Operating Income

920

11.2%

-8.7%

30.7%

3,000

Net Income

622

7.6%

30.7%

38.4%

1,620

Business Application Software

Previous Fiscal Year (From January 1, 2015 to December 31, 2015)(Unit: Millions of Yen)

Fiscal Year Ended December 31, 2015
1st Half
ResultNet Sales

Ratio toNet Sales

YoY rateof change

Progressrate

Full-year
result8,325

100.0%

-8.3%

49.5%

16,824

5,644

67.8%

-14.1%

49.9%

11,316

System Support

634

7.6%

-4.8%

50.1%

1,266

Network Service

2,046

24.6%

11.0%

48.2%

4,242

Operating Income

1,008

12.1%

-45.5%

40.1%

2,514

476

5.7%

-49.5%

38.1%

1,251

Business Application Software

Net Income- 10 -