The following information was originally prepared and published by the Company in Japanese as it contains timely disclosure materials to be submitted 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 First Nine Months of the
Fiscal Year Ending December 31, 2020 [IFRS] (Consolidated)
November 4, 2020
Broadleaf Co., Ltd.
Stock Listing: Tokyo Stock Exchange 1st Section
Representative: Kenji Oyama, Representative Director, President & CEO
Scheduled Submission Date for Quarterly Report:
November 12, 2020
Scheduled Starting Date for Dividend Payment:–
Business Results Supplementary Explanatory Documents:
Yes
Business Results Briefing:
Yes (For institutional investors and analysts)(Amounts are rounded off to the nearest million yen.)

1. Consolidated Financial Results for the First Nine Months of the FY2020 (from January 1, 2020 to September 30, 2020)(1) Consolidated Results of Operations(Percentage below represents increase (decrease) from the same period of previous year)
Profit attributable
Total
Revenue
Operating profit Profit before tax
Profitto owners ofcomprehensive
parentincomeMillions of Yen% Millions of Yen% Millions of Yen% Millions of Yen% Millions of Yen% Millions of Yen%

Q3 FY2020

15,544-7.7

2,864 -19.5

2,815 -20.1

1,866 -19.5

1,867 -19.5

1,741 -21.7

Q3 FY201916,840 11.5

3,558 31.5

3,523 30.4

2,319 32.9

2,320 32.9

2,224 29.5

Basic earnings per share
Q3 FY2020
Q3 FY2019

Diluted earnings per share

Yen

Yen

21.33
26.55

20.98
26.21

(2) Consolidated Financial Position
Total assets

Percentage of equity
attributable to owners ofparentEquity attributable toowners of parent

Total equity

Millions of Yen

Millions of Yen

Millions of Yen%

32,324
31,68924,02323,22024,021
23,21774.3
73.3

End of Q3 FY2020

End of FY2019
2. Dividends

Dividends Per Share
End of Q1

End of Q2

End of Q3

Year-end

Total

Yen

Yen

Yen

Yen

Yen

FY2019

－

6.50

－

6.50

13.00

FY2020

－

6.60

－
6.60

13.20

FY2020 (Forecast)(Note) Revisions to the latest forecast of dividends: No

3. Results Forecasts for FY2020 (from January 1, 2020 to December 31, 2020)(Percentages below represent increases (decreases) from the previous fiscal year.)

Revenue

FY2020(Note)

Operating profit

Profit attributable toowners of parent

Profit before tax

Millions of Yen%

Millions of Yen%

Millions of Yen%

21,300

-5.7

3,900

-13.8

3,900

-13.1

Revisions to the latest results forecasts: No

Millions of Yen

Basic earnings per
share

%

Yen

2,700 -12.7

30.87

* Notes(1) Changes in significant subsidiaries during the first nine months ended September 30, 2020 (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: No
2. Other changes in accounting policies: No
3. Changes in accounting estimates: No(3) Number of shares outstanding (common stock)
1. Number of shares outstanding (including
treasury stock)

Q3 FY2020

97,896,800

FY201997,896,800

2. Number of shares of treasury stock

Q3 FY2020

10,313,011

FY201910,469,263

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

Q3 FY2020

87,511,414

Q3 FY201987,369,228* The summary of financial statements is outside the scope of audit procedures by certified public accountants and audit firm.
* Comment regarding appropriate usage of results forecasts, and other special notes(Note on forward-looking statements)
The forward-looking statements such as results forecasts contained in this document are based on the information currently available to
the Company and certain assumptions which are regarded as legitimate. The Company makes no warranty as to the achievability of whatis described in the statements. Actual results may differ from these forecasts due to various factors.
(Availability of earnings supplementary explanatory documents and information on business results briefings)
The Company will hold a business results briefing for institutional investors and analysts on Wednesday, November 4, 2020. A document
to be used in the briefing will be posted on the website.

○Table of Contents of Attached Material
1. Qualitative Information on Operating Results, etc. for the First Nine Months Ended September 30, 2020 ............................
(1) Qualitative information on financial results .......................................................................................................................
(2) Qualitative information on financial position ....................................................................................................................
(3) Qualitative information on consolidated results forecasts ..................................................................................................

2
2
2
3

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

4
4
5
6
7
9
11
11
11

- 1 -

1. Qualitative Information on Operating Results, etc. for the First Nine Months Ended September 30, 2020
(1) Qualitative information on financial results
During the first nine months of the fiscal year under review (from January 1, 2020 to September 30, 2020), the Japanese economy
faced a challenging environment imposed by the COVID-19 pandemic. However, signs of recovery began to emerge, reflecting
a gradual increase in social and economic activities and improvements in overseas economies.
In these circumstances, the information service segment, in which the Company operates, saw rising demand for investments
facilitating the transfer of operations to the internet, including teleworking, reflecting trends towards digital transformation (DX)to realize new workstyles. Meanwhile, companies remained cautious about new investments outside the DX area, reflecting theprevailing uncertainty.
Based on the spirit of “gratitude and happiness,” part of the Group’s corporate philosophy, we focus on activities that contributeto the ability of our customers to create business and that support their business continuity. As part of these activities, we steppedup the provision of tools that helped customers move their operations online, while providing support for digital transformationin the form of seminars. As a result, negotiations with customers were moving online and what had been prolonged negotiation
periods were gradually returning to their pre-pandemic length. In anticipation of a new mobility society, we are offering morediverse platforms to mobility service providers in Japan and overseas.
Under these circumstances, monthly recurring sales increased, chiefly reflecting rising support service contract rates. Meanwhile,
we were not able to completely reverse the trend of prolonged negotiation periods in the sale of business software, and lumpsum sales proportional to the number of contracts won decreased.
As a result, in the first nine months of the fiscal year under review (from January 1 to September 30, 2020), the Company posted
revenue of 15,544 million yen (down 7.7% year on year), operating profit of 2,864 million yen (down 19.5% year on year), profit
before tax of 2,815 million yen (down 20.1% year on year) and profit attributable to owners of parent of 1,867 million yen (down
19.5% year on year).
The Company has a single business segment, which consists of IT services. A breakdown of sales by revenue categories is shownin the table below.
(Unit: Millions of Yen)First Nine Months, FY2019First Nine Months, FY2020
Domain(From January 1 to(From January 1 toYear-on-year rate of change
September 30, 2019)
September 30, 2020)
Platforms

7,579

7,440

-1.8%

Applications

9,261

8,104

-12.5%

16,84015,544

-7.7%

Total

(2) Qualitative information on financial position(i) Analysis of financial position(Assets)
Assets at the end of the third quarter of the consolidated fiscal year under review increased 635 million yen from the end of theprevious consolidated fiscal year, to 32,324 million yen. Current assets increased 2 million yen, to 7,989 million yen, and noncurrent assets increased 634 million yen, to 24,335 million yen. The main factor contributing to the increase in non-current assets
was 1,034 million yen in additional intangible assets, which more than offset a decrease in tangible non-current assets of 228
million yen and a decrease in other non-current financial assets of 139 million yen.
(Liabilities)
Liabilities at the end of the third quarter of the consolidated fiscal year under review declined 168 million yen from the end of
the previous consolidated fiscal year, to 8,301 million yen. Current liabilities fell 28 million yen, to 7,072 million yen, and noncurrent liabilities fell 140 million yen, to 1,229 million yen. The main factors contributing to the decrease in current liabilities
were reductions in income taxes payable of 489 million yen, operating and other payables of 355 million yen, contract liabilitiesof 340 million yen, and other current liabilities of 199 million yen, which more than offset increase in short-term interest-bearing
debt of 1,357 million yen. The decrease in non-current liabilities was mainly due to decrease in long-term interest-bearing debt
of 135 million yen.
(Equity)
Equity at the end of the third quarter of the consolidated fiscal year under review increased 803 million yen from the end of theprevious consolidated fiscal year, to 24,023 million yen. The increase was chiefly attributable to an increase in retained earningsof 720 million yen.
- 2 -(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 265
million yen from the end of the previous consolidated fiscal year, to 2,769 million yen.
The following is a description of the situation and major factors of each category of cash flows in the first nine months ended
September 30, 2020.
(Net cash from operating activities)
Net cash provided by operating activities stood at 2,114 million yen (up 53.7% year on year). The main factors contributing to
the increase is chiefly attributable to the posting of profit before tax of 2,815 million yen and depreciation and amortization
expenses of 1,586 million yen, which more than offset increase in income taxes paid of 1,438 million yen, decrease in operating
and other payables of 838 million yen, and increase in operating and other receivables of 358 million yen.
(Net cash from investing activities)
Net cash used in investing activities came to 1,938 million yen (down 34.5% year on year), mainly due to the acquisition of
intangible assets of 1,834 million yen.
(Net cash from financing activities)
Net cash used in financing activities came to 441 million yen (down 79.1% year on year), chiefly attributable to cash dividends
paid of 1,146 million yen, and repayments of lease obligations of 691 million yen, which more than offset an increase in shortterm loans payable of 1,400 million yen.
(3) Qualitative information on consolidated results forecasts
There is no change in the consolidated results forecasts announced in “Notice Concerning Revision of Consolidated Earnings
Forecasts” on August 7, 2020.
.

- 3 -

2. Summary Consolidated Financial Statements and Major Notes(1) Summary consolidated statement of financial position(Unit: Thousands of Yen)FY2019(As of December 31, 2019)
AssetsCurrent assets
Cash and cash equivalents
Operating and other receivables
Inventories
Other current financial assets
Other current assets
Total current assets

Q3 FY2020(As of September 30, 2020)

3,033,768
4,300,009
252,684
5,000
395,541
7,987,002

2,769,192
4,641,427
183,506
55,000339,484
7,988,609

2,026,600
11,802,504
6,897,109
94,655
1,953,076
234,224
693,392
23,701,560
31,688,562

1,798,750
11,802,504
7,930,963
71,055
1,814,422
189,514727,864
24,335,072
32,323,681

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

3,613,128
1,051,622
754,091
655,300
76,986
948,841
7,099,967

3,257,816
711,799
2,111,146
165,953
74,935750,102
7,071,752

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

933,932
185,866
134,834
114,337
1,368,970
8,468,936

799,272
195,940
137,244
96,442
1,228,898
8,300,650

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

7,147,905
7,199,403-3,456,820
11,928,868
397,573
23,216,929
2,697
23,219,626
31,688,562

7,147,905
7,215,824-3,402,046
12,649,199
410,11124,020,993
2,038
24,023,031
32,323,681

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- 4 -(2) Summary consolidated statement of income(Unit: Thousands of Yen)First Nine Months, FY2019(From January 1, 2019
to September 30, 2019)

First Nine Months, FY2020(From January 1, 2020
to September 30, 2020)

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Other operating income
Other operating expense
Operating profit
Finance income
Finance costs
Equity in loss of affiliates
Profit before tax
Income tax
Profit16,840,304-4,657,858
12,182,446-8,671,108
53,497-7,1533,557,681
8,012-33,428-8,991
3,523,275-1,203,880
2,319,394

15,543,548-4,549,844
10,993,704-8,173,495
51,254-7,1452,864,318
35,025-59,997-24,704
2,814,642-948,676
1,865,966

Profit attributable to:
Owners of parent
Non-controlling interests
Profit2,319,540-145
2,319,394

1,866,625-659
1,865,966

26.55
26.21

21.33
20.98

Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)- 5 -(3) Summary consolidated statement of comprehensive income(Unit: Thousands of Yen)First Nine Months, FY2019(From January 1, 2019
to September 30, 2019)
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
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
Non-controlling interests
Profit- 6 -First Nine Months, FY2020(From January 1, 2020
to September 30, 2020)

2,319,394

1,865,966-97,286-123,993-97,286-123,993

1,459

-517

389

-21

1,848

-538

-95,438-124,531

2,223,956

1,741,435

2,224,102-145
2,223,956

1,742,094-659
1,741,435

(4) Summary consolidated statement of changes in equity
First Nine Months, FY2019 (From January 1, 2019 to September 30, 2019)(Unit: Thousands of Yen)
Equity attributable to owners of parent
Other components of equity
Capital stock

Shares withrestriction ontransfer

Share premium

Treasury shares

Retained earnings

7,147,905

7,180,289-3,500,454

9,759,561

363,850

–

–

–

–

38,969––7,147,905

7,180,289-3,500,454

9,798,530

363,850–

Profit–––2,319,540––

Other comprehensive income

–

–

–

–

–

–

Total comprehensive income

–

–

–

2,319,540––

Acquisition of subsidiaries

–

–

–

–

–

–

Disposal of treasury shares–-1,936

6,174–-5,610–

Dividends–––-1,135,758––

Share-based paymenttransactions–

22,01835,993–130,252-28,000

Reclassification from othercomponents of equity toretained earnings

–

–

–

171,121––

Total transactions with owners–

20,082

42,167-964,637

124,642-28,000

7,147,905

7,200,371-3,458,288

11,153,433

488,492-28,000

Balance as of January 1, 2019
Changes in accounting
policies
Balance after restatement ofprior period’s financial results
after error corrections

Balance as of September 30,
2019

Warrants(Unit: Thousands of Yen)
Equity attributable to owners of parent
Other components of equity

Balance as of January 1, 2019
Changes in accounting
policies
Balance after restatement ofprior period’s financial results
after error corrections

Exchangedifferences ontranslation offoreign operations

Net change in fairvalue of financial
assets of equity
nature measured atfair value throughothercomprehensive
income-49,109131,383

446,124

21,033,424–

21,033,424

–

–

–

38,969–38,969-49,109131,383

446,124

21,072,393–

21,072,393
2,319,394

Non-controllinginterests

Total

Total

Total equity

–

–

–

2,319,540

-145

1,848

-97,286-95,438-95,438–-95,438

Total comprehensive income

1,848-97,286-95,438

2,224,102-145

2,223,956

Acquisition of subsidiaries

–

–

–

–

2,949

2,949

Disposal of treasury shares––-5,610-1,372–-1,372

Dividends–––-1,135,758–-1,135,758

Share-based paymenttransactions––

102,252

160,263–

160,263

Reclassification from othercomponents of equity toretained earnings–-171,121-171,121–––

Total transactions with owners–-171,121-74,479-976,868

2,949-973,919-47,261-137,024

276,20722,319,627

2,804

22,322,431

ProfitOther comprehensive income

Balance as of September 30,
2019

- 7 -

First Nine Months, FY2020 (From January 1, 2020 to September 30, 2020)(Unit: Thousands of Yen)
Equity attributable to owners of parent
Other components of equity
Capital stock

Share premium

Treasury shares

Retained earnings

Shares withrestriction ontransfer

Warrants

7,147,905

7,199,403-3,456,820

11,928,868

537,744-14,000

Profit

－－－1,866,625－－

Other comprehensive income

Balance as of January 1, 2020

－

－

－

－

－

－

Total comprehensive income

－

－

－

1,866,625－－

Disposal of treasury shares

－

2,279

12,917－-18,899－

Dividends－－－-1,146,294－－

Share-based paymenttransactions－

14,142

41,857－

169,968-14,000－

16,421

54,774-1,146,294

151,069-14,000

7,147,905

7,215,824-3,402,046

12,649,199

688,813-28,000

Total transactions with owners
Balance as of September 30,
2020(Unit: Thousands of Yen)
Equity attributable to owners of parent
Other components of equity

Exchangedifferences ontranslation offoreign operations

Net change in fairvalue of financial
assets of equity
nature measured atfair value throughothercomprehensive
income-44,269-81,903397,573

23,216,929

2,697

23,219,626

－

－

－

1,866,625-659

1,865,966-538-123,993-124,531-124,531－-124,531

Total comprehensive income-538-123,993-124,531

1,742,094-659

1,741,435

Disposal of treasury shares－－-18,899-3,704－-3,704

Dividends－－－-1,146,294－-1,146,294

Share-based paymenttransactions－－

155,968

211,968－

211,968－－

137,069-938,030－-938,030-44,807-205,896

410,11124,020,993

2,038

24,023,031

Balance as of January 1, 2020
ProfitOther comprehensive income

Total transactions with owners
Balance as of September 30,
2020

Total

- 8 -

Non-controllinginterests

Total

Total equity

(5) Summary consolidated statement of cash flow
(Unit: Thousands of Yen)First Nine Months, FY2019 First Nine Months, FY2020(From January 1, 2019
(From January 1, 2020
to September 30, 2019)
to September 30, 2020)
Cash flows from operating activities
Profit before tax
Depreciation and amortization expense
Share-based payment expenses
Finance costs (income)Equity in loss (earnings) of affiliates
Decrease (increase) in operating and other receivables
Decrease (increase) in inventories
Increase (decrease) in operating and other payables
Increase (decrease) in prepaid expenses
Increase (decrease) in long-term prepaid expenses
Increase (decrease) in accrued expenses
Increase (decrease) in employees' bonuses payable
Increase (decrease) in contract liabilities
Increase (decrease) in consumption taxes payable
Other, net
SubtotalInterest received
Dividends received
Interest expenses paid
Income taxes refunded (paid)
Cash flows provided by (used in) operating activities

3,523,275
1,388,112
158,252
25,416
8,991-419,177
54,744-296,923
2,928
6,200
-206,018-411,501-420,076-66,706-21,665
3,325,851
77
1,646-6,912-1,945,125
1,375,536- 9 -2,814,642
1,586,105
208,440
24,972
24,704-357,609
69,069-382,560
32,81630,004
6,443-344,870-339,823
140,578
42,246
3,555,156
3,261
1,839
-7,773-1,438,022
2,114,461

(Unit: Thousands of Yen)First Nine Months, FY2019 First Nine Months, FY2020(From January 1, 2019
(From January 1, 2020
to September 30, 2019)
to September 30, 2020)
Cash flows from investing activities
Acquisition of property, plant, and equipment
Acquisition of intangible assets
Acquisition of investments
Proceeds from sales and redemption of investments
Purchase of investments in subsidiaries resulting in change
in scope of consolidation
Loan advances
Collection of loans receivable
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Other, net
Cash flows provided by (used in) investing activities
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Repayments of lease obligations (during the first ninemonths of the previous consolidated fiscal year)
Cash dividends paid
Proceeds from sales of treasury shares
Commitment line related expenses
Cash flows provided by (used in) financing activities
Impact of exchange fluctuations for cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Balance of cash and cash equivalents at the end of the quarter- 10 --41,548-2,255,345-1,048,346
745,500-13,112-1,834,343-63,636490-64,215－-301,300
1,939-15,754
7,197
10,715-2,961,157-51,100
6,296-7,4232,519
21,886-1,938,424－-316,000

1,400,000－-661,607-691,055-1,135,758
4,238-3,247-2,112,374-702-3,698,697
5,626,723
1,928,027-1,146,294
1,500-4,898-440,746
133-264,576
3,033,768
2,769,192

(6) Notes regarding the summary consolidated financial statements(Notes on going concern assumption)
Not applicable.
(Segment information)
Since the Group has only a single business segment (IT services), the statement is omitted.

- 11 -