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 FY2023 [IFRS] (Consolidated)
February 9, 2024
Broadleaf Co., Ltd
Stock listing:
Representative:
Scheduled date of Annual General Meeting of Shareholders
Scheduled date of commencement of dividend payout
Earnings Supplementary Explanatory Documents
Earnings Results Briefing:

Tokyo Stock Exchange Prime Market
Representative Director, President and CEO Kenji Oyama
March 26, 2024
March 27, 2024
Yes
Yes (For institutional investors and analysts)(Figures are rounded to the nearest million yen)

1. Consolidated Results for FY2023 (January 1, 2023 to December 31, 2023)(Percentage below represents increase (decrease) from the same period of previous year)(1) Consolidated Operating Results
Revenue

Operating profit

Profit before tax

Net income

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen

15,385
13,83311.2-33.0-1,902-2,897－－-1,921-3,005－－-1,525-2,432

FY2023
FY2022

Basic earnings per share Diluted earnings per share
FY2023
FY2022

Profit attributable to Total comprehensive
owners of the parent
incomeMillions ofMillions of
%
%
%
yen
yen
－
－

Return on equity-1,487-2,431-1,380-2,320－－Return on assets－－

Operating margin

Yen

Yen

%

%

%

-16.76-27.54-16.76-27.54

-6.5
-9.8

-5.5
-8.8

-12.4
-20.9

FY2023: -2 millions of yen(Reference) Share of profit or loss of entities accounted for using equity method

FY2022: -1 millions of yen(2) Consolidated Financial Position

FY2023
FY2022

Total assets

Total equity

Millions of yen

Millions of yen

36,75033,53522,487
23,662Millions of yen

Percentage of equity
attributable to owners of
the parent%

Equity attributable toowners of the parent per
share
Yen

22,47323,63261.2
70.5

253.08267.36

Cash and cash equivalents at theend of period
Millions of yen

Equity attributable toowners of the parent(3) Consolidated Cash Flows Status
Cash flow from operating
activities
Millions of yen

Cash flow from investing
activities
Millions of yen

Cash flow from financing
activities
Millions of yen

3,425
1,606

-3,669-2,910705
1,237

FY2023
FY2022

3,920
3,457

2. Dividends Status
Ratio ofdividends toTotal dividend
Dividend
equityper shares
payout ratio attributable to
Total(Annual)(Consolidated) owners of theparent(Consolidated)
Yen Millions of yen%%

Dividend per share

End of 1Q

InterimEnd of 3Q

Year-end

Yen
Yen
Yen
Yen
0.00
1.00
1.00
FY2023
－
－
0.00
1.00
1.00
FY2022－－
FY2024 (forecast)
－
－
－
－
－
(NOTE) Dividend forecasts for the fiscal year ending December 2024 have not yet been determined.

92
92

－
－
－

0.4
0.4

3. Consolidated Earnings Forecasts for FY2024 (January 1, 2024 to December 31, 2024)(Percentage below represents increase (decrease) from the same period of previous year)
Profit attributable toOperating profit
Profit before tax
Basic earnings per shareowners of the parent

Revenue
1H FY2024
FY2024

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

Yen

8,000
17,600

8.3
14.4

-750
50

－
－

-750
50

－
－

-600
40

－
－

-6.74
0.45

※ 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
1. Changes in accounting policies required by IFRS: None
2. Changes in accounting policies other than above No.1: None
3. Changes in accounting estimates: None
(3) Number of shares outstanding (common stock)
1. Number of shares outstanding (including treasury shares)

FY202397,896,800 shares

FY2022

97,896,800 shares

2. Number of shares of treasury shares

FY2023

9,095,224 shares

FY2022

9,507,349 shares

3. Average number of shares during the period

FY202388,701,919 shares

FY202288,301,684 shares(Reference) Summary of Non-consolidated Financial Results
Non-consolidated financial results for FY2023 (January 1, 2023 to December 31, 2023)(1) Non-Consolidated Operating Results(Percentage below represents increase (decrease) from the same period of previous year)
Net sales

Operating profit

Ordinary income

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

13,737
12,31311.6-33.9-1,518-2,224－－-1,506-2,173－－-1,874-2,816－－FY2023
FY2022

Basic earnings per share
FY2023
FY2022

Diluted earnings per share

Yen

Yen

-21.13-31.89－－(2) Non-consolidated Financial Position
Total assets
FY2023
FY2022
Reference: Shareholders' equity

Net assets

Equity Ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

27,66225,94815,01916,82654.3
64.8

169.13190.36FY2023: 15,019 million yen

FY2022: 16,826 million yen<Reasons for differences in non-consolidated results from the results of the previous fiscal year>
In the previous fiscal year, Broadleaf Co., Ltd. converted the sales method of our mainstay business software from a multi-year lease contract to amonthly subscription contract. In the current fiscal year under review, revenues improved in line with the rise in recurring sales.
* The financial results are outside the scope of audits by a certified public accountant or an auditing 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 theGroup and certain assumptions which are regarded as legitimate. The Group makes no warranty as to the achievability of what is described in thestatements. Actual results may differ from these forecasts due to various factors.
(Availability of earnings supplementary explanatory documents and information on earnings results briefings)
The Group plan to hold an online live briefing for institutional investors and analysts on February 9 2024. The materials used at the meeting
will be posted on our website.

-2-

○Table of Contents of the Attached Material
1. Overview of operating results, etc…………………………………………………………………………………………………………….

2(1) Overview of operating results for the current fiscal year………………………………………………………………………………….

2(2) Overview of financial position for the current fiscal year…………………………………………………………………………………

3(3) Basic policy on profit distribution and dividends for the current and next fiscal years…………………………………………………...

4

2. Basic concept regarding the selection of accounting standards………………………………………………………………………………..

4

3. Consolidated financial statements and major notes……………………………………………………………………………………………

5(1) Consolidated statements of financial position……………………………………………………………………………………………..

5(2) Consolidated statements of income and consolidated statements of comprehensive income......................................................................

6

Consolidated statements of income……………………………………………………………………………………………………...

6

Consolidated statements of comprehensive income…………………………………………………………………………………….

7(3) Consolidated statements of changes in equity…………………………………………………………………………...………………...

8(4) Consolidated statements of cash flows…………………………………………………………………………………………………….

10(5) Notes regarding consolidated financial statements………………………………………………………………………………………..

12(Notes on the going concern) ...................................................................................................................................................................

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

12(Profits per share) .....................................................................................................................................................................................

12(Significant subsequent events) ................................................................................................................................................................

12

-1-

1. Overview of operating results, etc(1) Overview of operating results for the current fiscal year(i) Current management results
During the current fiscal year (January 1, 2023 to December 31, 2023) under review, the Japanese economy has been recovering moderately,
albeit at a standstill in some areas, due to the progress of normalization from COVID-19. On the other hand, the outlook remains uncertain due
to price increases, conditions surrounding the Middle East region, and changes in financial and capital markets.
Under such social and economic conditions, Japanese companies continued to move vigorously toward DX (digital transformation), such as
automating and streamlining business processes and responding to new digital infrastructures. In addition to these developments, the Mobility
sector, where many of Broadleaf Co., Ltd. group (hereinafter “the Group”) customers belong, has also shown an aggressive stance toward
investing in IT (Information and Technology) that enhances added value for consumers.
Based on the Group philosophy of “Gratitude and Happiness”, the Group promotes the two growth strategies, which are called “Cloud
Penetration” and “Service Expansion”, outlined in our Medium-Term Management Plan (2022-2028) (hereinafter “the Plan"). In the fiscal year
ending December 2028, the final year of the Plan, the Group is targeting consolidated revenue of 32.5 billion, operating profit of 13 billion(operating profit margin of 40%), and profit attributable to owners of the parent of 8 billion. In the previous fiscal year, the first year of thePlan, the Group began full-scale provision of “.c Series” of cloud software, which is the Group’s mainstay product, as an initiative to create afoundation for growing revenue. In addition, the Group switched to cloud software upon the expiration of the right to use previous packaged
software. This switch is scheduled to continue until the final year of the Plan, ending in December 2028. In the current fiscal year under review,
the second year of the Plan, the Group aggressively made proposals in line with customer DX needs. The Group continued to switch to “.cSeries”, which is the mainstay product. Furthermore, as a result of strengthening the development of new customers, the total number ofcustomers increased. Average monthly license sales also increased as the size and industry of customers eligible for cloud software sales. In
addition, recurring sales increased as a result of strengthened sales of the “Dencho.DX”, a monthly subscription-type software that complies
with the revised Electronic Books Maintenance Act. In addition, sales of packaged software and equipment for non-mobility sector were alsosteady. In terms of costs, the Group made upfront investments to strengthen our cloud infrastructure and back-office operations in preparation
for future functional enhancements and service expansion. As a result of these activities, the Group entered a trend of increased revenue andimproved our business performance compared to the previous fiscal year.
In addition to these initiatives, as announced in November 2023, Broadleaf Co., Ltd. has agreed to collaborate with Toyota Mobility Parts
Co., Ltd.. This makes it possible to purchase products provided by Toyota Mobility Parts Co., Ltd. from the ordering platform on the “Broadleaf
Cloud Platform” which is cloud infrastructure provided by the Group. In the future, the Group plans to promote collaboration with othercompanies that provide mobility parts, starting with collaboration with Toyota Mobility Parts Co., Ltd.. Through these activities, the Groupaims to expand the target market and increase the number of users of the Group’s ordering platform. In addition, in the press during the period,
some major used-car sales companies experienced incidents of distrust and doubt from consumers. The Group hopes to contribute to thedispelling of such distrust and doubt through the services provided by the Group and other means.
As a result of the above, in the current fiscal year under review, revenue was 15,385 million yen (up 11.2% year-on-year), operating loss was
1,902 million yen (loss of 2,897 million yen in the previous fiscal year), loss before income taxes was 1,921 million yen (loss of 3,005 million
yen in the previous fiscal year), and loss attributable to owners of the parent was 1,487 million yen (loss of 2,431 million yen in the previous
fiscal year). Continuing from the previous fiscal year, the current fiscal year's financial results exceeded our initial forecasts.
The Group only has a single segment of IT Services Business, but the breakdown of revenues by service category is as follows:(Millions of yen)Classification

FY2022(From January 1, 2022
to December 31, 2022)

FY2023(From January 1, 2023
to December 31, 2023)

YoY ratio

Cloud services

2,628

5,236

99.2％

Packaged system

11,205

10,149

-9.4％

Total

13,833

15,385

11.2％

Cloud services
Revenue from cloud services consists of usage fees for “.c Series” and other monthly subscription-based software, as well as usage fees orcommissions related to platforms for ordering automotive aftermarket parts.
Customers using packaged software gradually switched to “.c Series” as their usage rights expire (mostly for 6 years). In addition, theconvenience and flexibility of the menu structure of “.c Series” has increased the number of new customers. Moreover, the number of secondary
products such as the “Dencho.DX”, which is compliant with the revised Electronic Books Maintenance Act, and other DX solutions offered
increased. As a result, revenue from cloud services increased 99.2% year on year.

-2-

Packaged system
Revenue from packaged system consists of sales fees (lease sales or bulk sales) for packaged software for manufacturing industries, mobile
shops, travel businesses, bus operating businesses, machine tool trading companies, etc. And it consists of fees for various services required
when using packaged software, and sales proceeds for equipment and supplies such as PCs.
Sales of packaged software and equipment were favorable. On the other hand, the Group has terminated the leasing of packaged software for
Mobility sector by our sales agents. Consequently, packaged system revenue decreased 9.4% year on year.
(ii) Outlook for the Next Fiscal YearFor the next fiscal year (January 1, 2024 to December 31, 2024), the Group forecasts consolidated revenue of 17,600 million yen, operating
income of 50 million yen, income before income taxes of 50 million yen, and net income attributable to owners of the parent of 40 million yen.
Cloud software and monthly subscription software contracts during the current fiscal year will be recorded as revenue for the full fiscal year
in the next fiscal year. In addition, customers whose usage rights have expired will be gradually switched to cloud software. Additionally, theGroup will be sequentially transitioning customers who have had to temporarily wait to use cloud software that will be released in the next fiscal
year. In addition to this, the Group will also focus on proposal sales to solve the problems that our customers have. These activities will
accelerate the pace of growth in cloud services and sales revenue. Revenue of packaged system will decrease due to the progress in switching
to cloud software. However, as the increase in revenue from cloud services will exceed the decrease in revenue, revenue of next fiscal year is
expected to increase by 2,215 million yen compared to the previous fiscal year. In addition, while the Group anticipate an increase in sales
promotion expenses due to the strengthening of sales promotions, etc. and an increase in personnel expenses, etc. due to rising prices, the Groupwill review administrative expenses, etc. and improve efficiency. As a result, operating income is forecast to return to profitability due to an
improvement in profitability of 1,952 million yen compared with the previous fiscal year.
The earnings forecasts and other forward-looking information contained in these materials are based on our management's assumptions andbeliefs in light of information currently available. Accordingly, please do not rely entirely on these results.

(2) Overview of financial position for the current fiscal year(i) Financial position
Total assets at the end of the current fiscal year increased by 3,214 million yen from the end of the previous fiscal year to 36,750 million yen(up 9.6% year on year). Current assets increased by 498 million yen to 7,053 million yen (up 7.6% year on year), and non-current assets increased
by 2,716 million yen to 29,696 million yen (up 10.1% year on year). The increase in current assets was mainly attributable to a 463 million yen
increase in cash and cash equivalents. The increase in non-current assets was mainly due to an increase in intangible assets of 2,297 million yen.
Total liabilities at the end of the current fiscal year increased by 4,390 million yen from the end of the previous fiscal year to 14,263 million
yen (up 44.5% year on year). Current liabilities increased by 4,496 million yen to 11,079 million yen (up 68.3% year on year), and non-current
liabilities decreased by 107 million yen to 3,184 million yen (down 3.2% year on year). The increase in current liabilities was mainly attributable
to increases of 2,244 million yen in contract liabilities and 2,206 million yen in short-term interest-bearing debt. The main reason for the decreasein non-current liabilities was a 105 million yen decrease in long-term interest-bearing debt.
Total equity at the end of the current fiscal year decreased by 1,176 million yen from the end of the previous fiscal year, to 22,487 million yen(down 5.0% year on year). The main factors for the decrease in total equity were an increase of 236 million yen in other components of equity,
a decrease of 122 million yen in treasury stock, and a decrease of 1,599 million yen in retained earnings.
As a result, the ratio of equity attributable to owners of the parent to total assets decreased 9.3 points from 70.5% at the end of the previous
fiscal year to 61.2%.
(ii) Cash flow
Cash and cash equivalents at the end of the current fiscal year under review (hereinafter "the Funds") increased by 463 million yen from theend of the previous fiscal year to 3,920 million yen. Net cash provided by operating activities was 3,425 million yen, net cash used in investing
activities was 3,669 million yen, and net cash provided by financing activities was 705 million yen.
The situation of each cash flow in the current fiscal year and the factors behind them are as follows:(Cash flow from operating activities)
Net cash provided by operating activities was 3,425 million yen (up 113.2% year on year). This was mainly due to depreciation andamortization of 2,725 million yen and an increase in contract liabilities of 2,244 million yen, despite a decrease in funds resulting from a loss
before tax of 1,921 million yen.

-3-

(Cash flow from investment activities)
Net cash used in investing activities was 3,669 million yen (up 26.1% year on year). This was mainly due to payments for purchase ofintangible assets of 4,066 million yen, despite an increase of 468 million yen in proceeds from sales and redemption of investments.
(Cash flow from financing activities)
Net cash provided by financing activities was 705 million yen (down 43.0% year on year). This was mainly due to repayments of leaseliabilities of 872 million yen, repayments of long-term loans payable of 446 million yen, and cash dividends paid of 88 million yen, despite a netincrease in short-term loans payable of 1,637 million yen and an increase in proceeds from long-term loans payable of 500 million yen.
(3) Basic profit-appropriation policy and dividends for the current and next fiscal years
The Group regards the return of profits to shareholders as an important management issue. The Group will secure internal reserves necessary
for business development and maintenance of financial soundness to increase corporate value. At the same time, our basic policy is to distributeprofits in accordance with business performance. The Group targeting a consolidated dividend payout ratio of thirty-five percents (35%) or
more.
In addition, in order to enhance opportunities to return profits to shareholders, our basic policy is to pay dividends from surplus twice a year,
consisting of an interim dividend and a year-end dividend. These dividend decision-making bodies are the Board of Directors for interim
dividends and the Ordinary General Meeting of Shareholders for year-end dividends.
Based on the above policy, the Group will pay an annual dividend of one yen per share for the current fiscal year.
The dividend forecast for the next fiscal year has not been determined at this stage and will be announced as soon as it becomes possible todisclose reasonable forecasts in light of the progress of the Plan announced on February 9, 2022 and the status of internal reserves.

2. Basic concept regarding the selection of accounting standards
In order to enhance the convenience of our domestic and overseas shareholder and other stakeholders by enhancing the comparability and disclosureof financial information internationally, the Group has adopted the International Accounting Standards (IFRS) in place of the conventional Japanesestandard, instead of the consolidated financial statements in the fiscal year ending December 2016.

-4-

3. Consolidated financial Statements and major notes(1) Consolidated statements of financial position(Thousands of yen)
FY2022(As of December 31, 2022)

FY2023(As of December 31, 2023)

Cash and cash equivalents

3,456,772

3,920,033

Operating and other receivables

AssetsCurrent assets
2,602,057

2,710,922

Inventories

130,890

100,931

Other current assets

365,715

321,609

Total current assets

6,555,434

7,053,496

Property, plant and equipment

1,038,983

1,488,379

Goodwill

11,189,504

11,126,040

Intangible assets

11,771,237

14,067,950

Non-current assets

Investments accounted for using equity method
Other financial assets
Other non-current assets

83,012

81,175

1,364,416

1,181,240

250,391

145,297

Deferred tax assets

1,282,511

1,606,193

Total non-current assets

26,980,055

29,696,276

33,535,490

36,749,771

2,672,827

2,827,827

926,182

3,169,790

2,270,443

4,476,551

Total assets
Liabilities and equity
Liabilities
Current liabilities
Operating and other payables
Contract liabilities
Short-term interest-bearing debts
Accrued income taxes

8,421

3,925

Other current liabilities

704,634

600,877

Total current liabilities

6,582,508

11,078,970

Long-term interest-bearing debts

2,877,710

2,772,578

Obligations for retirement pay

232,191

235,776

Provisional sum

142,292

137,049

Other non-current liabilities

38,671

38,814

Total non-current liabilities

3,290,865

3,184,217

9,873,373

14,263,186

Capital stock

7,147,905

7,147,905

Share premium

7,366,245

7,449,297

Non-current liabilities

Total liabilities
EquityTreasury shares-3,167,193-3,045,268

Retained earnings

11,656,730

10,057,477

628,237

864,081

23,631,923

22,473,492

Other components of equity
Total equity attributable to owners of the parent
Non-controlling interests
Total equity
Total liabilities and equity-5-30,194

13,093

23,662,116

22,486,585

33,535,490

36,749,771

(2) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statements of income(Thousands of yen)
FY2022(From January 1, 2022
to December 31, 2022)

FY2023(From January 1, 2023
to December 31, 2023)

Revenue

13,832,547

15,384,879

Cost of sales-5,345,873-6,045,269

Gross profit

8,486,674

9,339,610-10,802,548-11,221,441

Selling, general and administrative expenses
Other operating income

34,04256,453

Other operating expenses-615,071-76,524

Operating loss (- shown is loss)-2,896,904-1,901,902

Finance income

11,46853,381

Finance costs-119,055-70,534

Equity in losses of affiliates
Loss before tax (- shown is loss)
Income tax-754-1,837-3,005,245-1,920,892

573,049

396,237-2,432,196-1,524,655-2,431,390-1,487,036-806-37,619-2,432,196-1,524,655

Basic loss per share (yen) (- shown is loss)-27.54-16.76

Diluted loss per share (yen) (- shown is loss)-27.54-16.76

Loss for the year (- shown is loss)

Net loss attributable to (- shown is loss)
Owners of the parent
Non-controlling interests
Loss for the year (- shown is loss)

Net loss per share (- shown is loss)-6-

Consolidated statements of comprehensive income(Thousands of yen)
FY2022(From January 1, 2022
to December 31, 2022)(Loss) for the year

FY2023(From January 1, 2023
to December 31, 2023)-2,432,196-1,524,655

108,901

140,612-4,124

4,677

104,777

145,289

-94

-546

7,050

－

6,957

-546

Total other comprehensive income, net of tax

111,733

144,743

Current term comprehensive income-2,320,463-1,379,912-2,319,656-1,342,293

Other comprehensive income
Items 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 other comprehensive income
Remeasurements of defined benefit plans
Total 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 forusing the equity method
Total items that may be reclassified to profit or loss

Comprehensive income attributable to:
Owners of the parent
Non-controlling interests
Current term comprehensive income

-7-

-806

-37,619-2,320,463-1,379,912

(3) Consolidated statements of changes in equity
FY2022 (From January 1, 2022, to December 31, 2022)(Thousands of yen)
Equity attributable to owners of the parent
Other components of equity
Capital stock Share premium Treasury shares

Balance at January 1, 2022

Retainedearnings

Exchange
Shares with differences on
restriction ontranslatingtransfer
foreign
operations

Warrants

7,147,905

7,291,792-3,285,446

14,488,974

772,216-14,000-48,370

Loss for the year (- shown is loss)

－

－

－

-2,431,390

－

－

－

Other comprehensive income

－

－

－

－

－

－

6,957

－

－

－

-2,431,390

－

－

6,957

Changes due to acquisition ofcontrol over subsidiaries

－

－

－

－

－

－

－

Purchase of treasury stock

－

－

-14

－

－

－

－

Disposal of treasury shares－

74,452

118,267－-141,166-51,552－

Dividends－－－-413,579

－

－

－

－

－

－

16,849181,575

52,664－－－－-4,124－－－

Total transactions with owners－

74,452

118,253-400,854

40,4091,112－

Balance at December 31, 2022

7,147,905

7,366,245-3,167,193

11,656,730

812,624-12,888-41,414

Total comprehensive income

Share-based paymenttransactions
Transfer from other componentsof equity to retained earnings(Thousands of yen)
Equity attributable to owners of the parent
Other components of equity
Net change in fair valueof financial assets of
Remeasurements
equity nature measuredof definedat fair value throughbenefit plansother comprehensive
incomeBalance at January 1, 2022

Total

Non-controllinginterests

Total equity

Total-238,987－

470,859

26,114,084－

26,114,084

－

－

－

-2,431,390-806-2,432,196

108,901-4,124

111,733

111,733－

111,733

108,901-4,124

111,733-2,319,656-806-2,320,463

Changes due to acquisition ofcontrol over subsidiaries

－

－

－

－

31,00031,000Purchase of treasury stock

－

－

－

-14

－

-14

Disposal of treasury shares－－-192,718

2－

2

Dividends－－－-413,579－-413,579－－

234,238

251,087－

251,087

－

4,124

4,124

－

－

－

Total transactions with owners

－

4,124

45,645-162,505

31,000-131,505

Balance at December 31, 2022

-130,086－

628,237

23,631,923

30,194

23,662,116

Loss for the year (- shown is loss)
Other comprehensive income
Total comprehensive income

Share-based paymenttransactions
Transfer from other componentsof equity to retained earnings-8-

FY2023 (From January 1, 2023 to December 31, 2023)(Thousands of yen)
Equity attributable to owners of the parent
Other components of equity
Capital stock Share premium Treasury shares

Balance at January 1, 2023

Retainedearnings

Exchange
Shares with differences on
restriction ontranslatingtransfer
foreign
operations

Warrants

7,147,905

7,366,245-3,167,193

11,656,730

812,624-12,888-41,414

Loss for the year (- shown is loss)

－

－

－

-1,487,036

－

－

－

Other comprehensive income

－

－

－

－

－

－

-546

Total comprehensive income

－

－

－

-1,487,036

－

－

-546

Disposal of treasury shares－

103,570

121,926－-173,762-56,000－

Dividends－－－-88,389

－

－

－

－

－

－

4,021

238,127

54,888－－-20,518

－

－

－

－

－

－

－

－

-27,849－－－

Total transactions with owners－

83,052

121,926-112,217

64,364-1,112－

Balance at December 31, 2023

7,147,905

7,449,297-3,045,268

10,057,477

876,989-14,000-41,960

Share-based paymenttransactions
Changes in ownership interest in
subsidiaries
Transfer from other componentsof equity to retained earnings(Thousands of yen)
Equity attributable to owners of the parent
Other components of equity
Net change in fair valueof financial assets of
Remeasurements
equity nature measuredof definedat fair value throughbenefit plansother comprehensive
incomeBalance at January 1, 2023

Total

Non-controllinginterests

Total equity

Total-130,086－

628,237

23,631,923

30,194

23,662,116

－

－

－

-1,487,036-37,619-1,524,655

140,612

4,677

144,743

144,743－

144,743

Total comprehensive income

140,612

4,677

144,743-1,342,293-37,619-1,379,912

Disposal of treasury shares－－-229,762-4,266－-4,266

Dividends－－－-88,389－-88,389－－

293,015

297,036－

297,036－－－-20,518

20,518－32,526-4,677

27,849－－－Total transactions with owners

32,526-4,677

91,101

183,862

20,518204,380

Balance at December 31, 2023

43,051－

864,081

22,473,492

13,09322,486,585

Loss for the year (- shown is loss)
Other comprehensive income

Share-based paymenttransactions
Changes in ownership interest in
subsidiaries
Transfer from other componentsof equity to retained earnings-9-(4) Consolidated statements of cash flows(Thousands of yen)
FY2022(From January 1, 2022
to December 31, 2022)

FY2023(From January 1, 2023
to December 31, 2023)

Cash flow from operating activities
Loss before tax (- shown is loss)-3,005,245-1,920,892

Depreciation and amortization expense

2,695,945

2,724,635

Impairment loss

615,000

63,464

Share-based payment expense

258,511

243,923

Finance costs income (- shown is income)

107,587

9,657

754

1,837

1,778,014-133,310

Equity in loss earnings of affiliates (- shown is earnings)
Decrease increase in trade and other receivables increased(- shown is increase)
Decrease increase in inventories (- shown is increase)77,21529,958

Increase decrease in trade and other payables (- show is decreased)-900,556

125,365

Decrease increase in prepaid expenses (- shown is increase)-68,619

69,139Decrease increase in long-term prepaid expenses (- shown is increase)-60,101

80,342

Increase decrease in employees' bonuses payable (- shown is decrease)109-15,513571,779

2,243,608

3,702-80,255

Increase decrease in contract liabilities (- shown is decrease)
Increase decrease in consumption taxes payable (- shown is decrease)
Others-57,021

7,441

Subtotal

2,017,075

3,449,399

Interest received

1,238

4,571

Dividend received

4,066

9,231

Interest expenses paid

-13,781-28,565

Income taxes refunded paid (- shown is paid)-402,262-9,640Cash flow from operating activities

1,606,335

3,424,997

Acquisition of property, plant and equipment-16,403-56,995

Proceeds from sales of property, plant and equipment

45,320600-3,000,908-4,066,212－

467,522

Cash flow from investing activities

Acquisition of intangible assets
Proceeds from sales and redemption of investments
Acquisition of newly consolidated subsidiaries-5,000－Loan advances-16,900-48,832

Collection of loans receivable

67,38327,199Payments for lease and guarantee deposits-615-3,452

Proceeds from collection of lease and guarantee deposits

4,470

12,537

Proceeds from sales investments accounted for using equity method

14,954－

Others-2,228-1,214-2,909,928-3,668,848

Cash flow from investing activities- 10 -

(Thousands of yen)
FY2022(From January 1, 2022
to December 31, 2022)

FY2023(From January 1, 2023
to December 31, 2023)

Cash flow from financing activities
Net increase decrease in short-term loans payable (- shown is decrease)-1,001,500

Proceeds from long-term debt

3,500,000

500,000

Repayments of long-term debt－

-445,834

Repayments of lease obligations-864,358-872,090

Cash dividends paid

-413,579-88,389

31,000－

Proceeds from share issuance to non-controlling interests
Purchase of treasury stock

1,637,498-14－

Expenses related to commitment lines-14,983-26,432

Cash flow from financing activities

1,236,566

704,752

Impact of exchange fluctuations for cash and cash equivalents

1,754

2,359

-65,272

463,260

Cash and cash equivalents at beginning of period

3,522,045

3,456,772

Cash and cash equivalents at year-end

3,456,772

3,920,033

Net increase decrease in cash and cash equivalents (- shown is decrease)- 11 -

(5) Financial statements(Notes on the going concern)
Not applicable.
(Segment information)(1) The outline of any Reporting Segment
The Group only has a single segment of IT Services Business, but as relevant information, it discloses sales from the above products andservices in two categories: Cloud service and Packaged system.
Cloud service consist of usage fees for “.c Series” and other monthly subscription-type software, as well as usage fees or commissions
related to platforms for ordering auto repair parts.
Packaged system consists of sales of “.NS Series” and other packaged software (lease contract or sell out), fees for ancillary services
required for using packaged software, and sales of PC and other devices and supplies.
(2) Segment revenues and results
This information is omitted because the Group only has a single business segment.
(Profits per share)
Basic and diluted loss per share and the basis for calculating such loss are as follows:
FY2022(From January 1, 2022
to December 31, 2022)
Loss attributable to owners of the parent (thousand yen) (- shown is loss)

FY2023(From January 1, 2023
to December 31, 2023)-2,431,390-1,487,036－－-2,431,390-1,487,036

88,301,684

88,701,919－－

88,301,684

88,701,919

Basic loss per share (yen) (- shown is loss)-27.54-16.76

Diluted loss per share (yen) (- shown is loss)-27.54-16.76

Adjustments to net income (thousand yen)
Diluted loss attributable to owners of the parent (thousands of yen)(- shown is loss)
Average number of common shares outstanding during the period (shares)
Effect of dilutive potential common shares
Stock Benefit Trust (shares)
Diluted average number of common shares outstanding during the period (shares)(NOTE) For the current fiscal year, the board benefit trust is antidilutive and therefore excluded from the calculation of diluted loss per share.
(Significant subsequent events)
Not applicable.

- 12 -