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 the First Quarter of the
Fiscal Year Ending December 31 2022 [IFRS] (Consolidated)
May 11, 2022
Broadleaf Co., Ltd
Stock listing:
Representative:
Scheduled date of commencement of dividend payout
Earnings Supplementary Explanatory Documents
Earnings Results Briefing:

Tokyo Stock Exchange Prime Market
Representative Director and President Kenji Oyama
Yes
Yes (For institutional investors and analysts)(Figures are rounded to the nearest million yen)
1. Consolidated Financial Results for 1Q FY2022 (January 1, 2022 to March 31, 2022)(1)Consolidated Operating Results (Cumulative)(Percentage below represents increase (decrease) from the same period of previous year)
Revenue

Operating profit

Millions ofyen%Millions ofyen

1Q FY2022

3,254

-37.4

1Q FY2021

5,195

-1.6

Profit before tax%

Millions of
yen

-737

-

672

10.1

Basic earnings per share

Profit attributable to Total comprehensive
owners of the parent
incomeProfit%Millions ofyen%Millions of
yen

-646

-

669

6.8

%

Millions of
yen

-570

-

427

3.5

-570

-

-586

-

426

3.1

504

89.0

%

Diluted earnings per share

Yen

Yen

1Q of FY2022

-6.48

-6.48

1Q of FY2021

4.86

4.77

(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%

1Q of FY2022

32,85325,18625,18676.7

FY2021

34,476

26,114

26,11475.7

2.Dividend Status
Dividend per share
End of 1Q

End of 2Q

End of 3Q

Year-end

Total

Yen

Yen

Yen

Yen

Yen

FY2021

-

4.00

-

4.70

8.70

FY2022----

FY2022 (forecast)(NOTE)

1. Revisions to the most recently announced dividend forecasts: None
2. Dividend for FY2022 is not determined at the time.

3.Consolidated Results Forecasts for FY2022 (January 1, 2022 to December 31, 2022)(Percentage below represents increase (decrease) from the same period of previous year)
Revenue

1H FY2022
FY2022

Operating profit

Millions of
yen
6,000

-39.6

Millions ofyen-2,10012,300-40.4-4,800%(NOTE)Revisions to the latest announced earnings forecasts: Yes

Profit attributable toowners of the parent

Profit before tax-

Millions ofyen-2,000--4,800%-Millions ofyen-2,100--5,000%

Basic earnings per share
%

Yen

-

-23.80--56.62

※ Notes(1)Changes in significant subsidiaries during the current period (changes in specified subsidiaries with changes in the scope of
consolidation): None
(2)Changes in accounting policies and changes in accounting estimates(i) Changes in accounting policies required by IFRS: None(ii) Other changes in accounting policies: None(iii) Changes in accounting estimates: None
(3)Number of shares outstanding (common stock)(i) Number of shares outstanding (including
treasury shares)

1Q FY2022

97,896,800 Shares FY2021

97,896,800 Shares(ii) Number of shares of treasury shares

1Q FY2022

9,649,139 Shares FY2021

9,901,018 Shares(iii) Average number of shares outstanding(during the period)

1Q FY2022

88,093,743 Shares 1Q FY2021

87,682,693 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 on May 11, 2022, in the form of a telephone
conference. The materials used at the meeting will be posted on its website.

○Table of Contents of the Attached Material
1.

2.

Qualitative Information on Operating Results for the First Three Months Ended March 31, 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

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) Notes to Consolidated Financial Statements .....................................................................................................................

10(Notes on Going Concern) ................................................................................................................................................

10(Segment Information) ......................................................................................................................................................

10

-1-

1. Qualitative Information on Operating Results for the First Three Months Ended March 31, 2022
(1) Explanation of Operating Results
In the first three months of the current fiscal year (January 1, 2022 to March 31, 2022), Japanese economy is expected togradually normalize its economic and social activities, as semi-emergency COVID-19 measures, which had been implemented
for the outbreak of COVID-19, were completely lifted on March 21, 2022. On the other hand, under uncertain situation in Russia
and Ukraine, it is becoming necessary to closely monitor economic downside risks caused by changes in the financial and capital
markets, rising raw material prices, and supply chain constraints.
Under such social conditions, efforts for management reform using IT are accelerating, such as digital transformation (DX) of
a company and development of new digital services. In the domestic mobility industry, in which 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 operational processes
and remote working styles, but also in terms of business expansion and creation.
Based on our corporate philosophy of "Gratitude and Happiness," the Group continues its activities to contribute to the business
continuity and business creation of its clients. In first three months of the current fiscal year, the Company started the full-scale
provision of “.c Series,” the cloud-based software service which has evolved into a total management system, and supported DX
of clients' overall businesses. Sales activities of “.c Series” has progressed as planned, and sale to new clients was especiallygoing well. Also, sale of products for non-automotive industries was going well , and the Group conducted cost reduction bystreamlining the sales activities.
As a result, in the first three months of the current fiscal year (January 1, 2022 to March 31, 2022), revenue was 3,254 million
yen (down 37.4% year-on-year), the operating loss was 737 million yen (operating profit of 672 million yen in the same periodof the previous fiscal year), loss before tax was 646 million yen (profit before tax of 669 million yen in the same period of theprevious fiscal year), and loss attributable to owners of the parent was 570 million yen (profit attributable to owners of the parentof 426 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 revenue by service categories is asfollows.
(Millions of yen)
Category

1Q FY2021(From January 1, 2021
to March 31, 2021)

1Q FY2022(From January 1, 2022
to March 31, 2022)

YoY ratio

Cloud service

417

517

23.9%

Packaged system

4,778

2,737

-42.7%

Total

5,195

3,254

-37.4%-2-

(2) Explanation of Financial Position(i) Analysis of financial condition(Assets)
Assets at the end of the first quarter of the current fiscal year decreased by 1,623 million yen from the end of the previous
fiscal year to 32,853 million yen. Current assets decreased by 2,043 million yen to 6,362 million yen, while non-current assets
increased by 419 million yen to 26,491 million yen. The decrease in current assets was mainly due to a decrease of 1,882 million
yen in trade and other receivables. The increase in non-current assets was mainly attributable to increases in intangible assets of
409 million yen and other financial assets of 106 million yen, despite a decrease in property, plant and equipment of 65 million
yen.
(Liabilities)
Liabilities at the end of the first quarter of the current fiscal year decreased by 695 million yen from the end of the previous
fiscal year to 7,667 million yen. Current liabilities decreased by 568 million yen to 6,944 million yen, while non-current liabilities
decreased by 127 million yen to 723 million yen. Current liabilities decreased mainly due to decreases in trade and other payablesof 1,007 million yen, income taxes payable of 398 million yen, and other current liabilities of 318 million yen, despite an increasein short-term interest-bearing debt of 1,188 million yen. The decrease in non-current liabilities was mainly attributable todecreases in deferred tax liabilities of 86 million and long-term interest-bearing debt of 38 million yen.
(Equity)
Shareholders' equity at the end of the first quarter of the current fiscal year decreased by 928 million yen from the end of theprevious fiscal year to 25,186 million yen. The decrease in shareholders' equity was mainly due to a decrease in retained earningsof 977 million yen.
(ii) Analysis of cash flows
Cash and cash equivalents (hereinafter referred to as "cash") at the end of the first quarter of the current fiscal year decreased
by 164 million yen from the end of the previous fiscal year to 3,358 million yen.
The situation of each cash flow and its factors in the first quarter of the current fiscal year are as follows.
(Cash flow from operating activities)
Cash provided by operating activities was 28 million yen (compared with 96 million used in the same period of the previous
fiscal year). This was mainly due to a decrease in trade and other payables of 1,002 million yen, loss before tax of 646 million
yen, income taxes paid of 394 million yen, a decrease in accrued employee bonuses of 259 million yen, finance income andfinance costs of 94 million yen, and a decrease in prepaid expenses of 79 million yen, despite a decrease in trade and otherreceivables of 1,872 million yen and depreciation and amortization expense of 641 million yen.
(Cash flow from investment activities)
Cash used in investing activities was 768 million yen (a-year-on-year increase of 3.8%). This was mainly due to purchase ofintangible assets of 833 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 574 million yen (year-on-year increase of 26.8%). This was mainly due to a netincrease of 1,201 million yen in short-term loans payable, despite 414 million yen in dividends payout and 210 million yen in
repayments of lease liabilities.
(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 promotemarket expansion and service penetration centered on “.c Series,” the cloud-based software service, with the aim of becomingthe "Top SaaS company in Japan."
For the fiscal year ending December 31, 2022, the Group expects revenue to be 12.3 billion yen, operating loss to be 4.8
billion yen, loss before tax to be 4.8 billion yen, and loss attributable to owners of the parent to be 5.0 billion yen, as
announced on February 9, 2022. The forecast for the first half of the fiscal year has been revised in consideration of businessstatus and progress in the first quarter of the current fiscal year.

-3-2. Consolidated Financial Statements and Major Notes(1) Consolidated Statement of Financial Position(Thousands of yen)
FY2021(As of December 31, 2021)
AssetsCurrent assets
Cash and cash equivalents
Operating and other receivables
Inventories
Other financial assets
Other current assets

End of 1Q FY2022(As of March 31, 2022)

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

3,357,766
2,411,623
195,022
20,000377,327

8,404,523

6,361,738

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

1,208,549
11,802,504
10,957,644
91,9581,347,321
210,983
871,906

26,071,452

26,490,865

34,475,975

32,852,603

3,567,899
354,4032,480,024
405,660
704,3102,560,463
321,329
3,668,186
7,213
386,791

7,512,295

6,943,982

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
43,235300,194
213,849
144,071
29,34835,219Total non-current liabilities

849,596

722,682

8,361,891

7,666,663

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

7,147,905
7,377,754-3,219,015
13,511,947
367,348

Total equity attributable to owners of the parent

26,114,084

25,185,940

Total equity

26,114,084

25,185,940

34,475,975

32,852,603

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)
1Q FY2021(From January 1, 2021
to March 31, 2021)

1Q FY2022(From January 1, 2022
to March 31, 2022)

Revenue

5,194,880

3,254,368

Cost of sales-1,529,947-1,194,847

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

3,664,934-3,006,433
13,851-661

2,059,521-2,806,391
9,751
-29

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

671,691
18,927-9,960-11,458-737,148
110,111-16,001-3,242

Profit (loss) before tax
Income tax

669,200-241,923-646,280
75,803

Profit (loss)

427,277-570,477

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

425,848
1,429-570,477-

427,277-570,477

4.86
4.77

-6.48
-6.48

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(Thousands of yen)
1Q FY2021(From January 1, 2021
to March 31, 2021)
ProfitOther 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
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-

1Q FY2022(From January 1, 2022
to March 31, 2022)

427,277-570,477

73,876-14,966

73,876-14,966

1,432-1,791

1,273

823

2,705

-968

76,581-15,934

503,858-586,411

502,429
1,429-586,411-

503,858-586,411

(4) Consolidated Statements of Changes in Equity
1Q FY2021 (From January 1, 2021 to March 31, 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---425,848--

Other comprehensive income

-

-

-

-

-

-

Total comprehensive income

-

-

-

425,848--

Disposal of treasury shares-

66,716

67,111--133,826-

Dividends----578,052--

Share-based payment transactions

-

-

-

7,794

45,16514,000Total transactions with owners-

66,716

67,111-570,258-88,660

14,000

Balance as of March 31, 2021

7,147,905

7,282,540-3,336,507

13,121,415

635,581-

Balance as of January 1, 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

-

-

2,705

Total comprehensive income

Noncontrollinginterests

Total equity

24,600,015

2,451

24,602,466-

425,848

1,429

427,277

73,876

76,581

76,581-

76,581

2,705

73,876

76,581

502,429

1,429

503,858

Disposal of treasury shares---133,826

2-

2

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

Share-based payment transactions--

59,16566,959-66,959Total transactions with owners---74,660-511,091--511,091

Balance as of March 31, 2021

-44,321-215,260

375,999

24,591,353

3,880

24,595,233

Balance as of January 1, 2021
ProfitOther comprehensive income

-7-

Total

Total

1Q FY2022 (From January 1, 2022 to March 31, 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

-

-

-

-570,477--

Other comprehensive income

-

-

-

-

-

-

-

-

-

-570,477--

Acquisition of treasury shares

-

-

-14

-

-

-

Disposal of treasury shares-

85,962

66,445-- 152,407-

Dividends----413,579--

Share-based payment transactions

-

-

-

7,030

50,831

14,000Total transactions with owners-

85,962

66,431-406,550-101,576

14,000

Balance as of March 31, 2022

7,147,905

7,377,754-3,219,015

13,511,947

670,639-

Balance as of January 1, 2022

Total comprehensive income

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

-

-

-

-570,477-570,477-968-14,966-15,934-15,934-15,934

Total comprehensive income-968-14,966-15,934-586,411-586,411

Purchase of treasury stock

-

-

-

-14

-14

Disposal of treasury shares---152,407--

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

Share-based payment transactions--

64,831

71,86071,860Total transactions with owners---87,576-341,733-341,733

Balance as of March 31, 2022

-49,338-253,953

367,348

25,185,940

25,185,940

Balance as of January 1, 2022
Loss
Other comprehensive income-8-

Total equity

Total

Total

(5) Consolidated Statements of Cash Flows(Thousands of yen)
1Q FY2021(From January 1, 2021
to March 31, 2021)

1Q FY2022(From January 1, 2022
to March 31, 2022)

Cash flow from operating activities
Profit (loss) before tax

669,200-646,280

Depreciation and amortization expense

566,708

640,713

Share-based payment expense

59,16575,700Finance costs (income)-8,967-94,110Equity in loss (earnings) of affiliates

11,4583,242

Decrease (increase) in trade and other receivables

16,605

1,872,235

Decrease (increase) in inventories

197,166

13,031

Increase (decrease) in trade and other payables-619,864-1,002,348

Decrease (increase) in prepaid expenses-25,441-79,139

Decrease (increase) in long-term prepaid expenses

19,816

17,405

Increase (decrease) in employees' bonuses payable-281,453-258,571

Increase (decrease) in contract liabilities-61,787-33,073

Increase (decrease) in consumption taxes payable-56,311-31,157

Others-28,378-53,437

Subtotal

457,917424,211651

11Interest received
Interest expenses paid

-2,088-2,901

Income taxes paid

-552,633-393,813

Cash flow from operating activities-96,152

27,507

Acquisition of property, plant and equipment-12,537-1,586

Acquisition of intangible assets-738,941-832,516

Cash flow from investing activities

Loan advances

-300

-

Collection of loans receivable

316

65,251

Payments for lease and guarantee deposits

-619

-256

Proceeds from collection of lease and guarantee deposits

4,056

1,398

Others8,256--739,770-767,708

Net increase (decrease) in short-term loans payable

1,302,000

1,201,000

Repayments of lease obligations-222,024-210,421

Cash dividends paid

-578,052-413,579

Expenses related to commitment lines-49,528-3,205

Cash flow from financing activities

452,395

573,795

1,359

2,127

Cash flow from investing activities
Cash flow from financing activities

Impact of exchange fluctuations for cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents-382,167-164,279

Cash and cash equivalents at beginning of period

3,232,409

3,522,045

Balance of cash and cash equivalents at end of period

2,850,241

3,357,766-9-

(6) Notes to Consolidated Financial Statements(Notes on Going Concern)
Not applicable.
(Segment Information)
This information is omitted because the Group only has a single business segment of the IT services.

- 10 -