The following information was originally prepared and published by the Company in Japanese as it contains timely disclosure materials tobe 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 Quarter of the
Fiscal Year Ending December 31, 2018 [IFRS] (Consolidated)
May 11, 2018
Broadleaf Co., Ltd.
Stock Listing: Tokyo Stock Exchange 1st Section
Representative: Kenji Oyama, Representative Director, President & CEO
Scheduled Starting Date for Dividend Payment:–
Earnings Supplementary Explanatory Documents:
Yes
Earnings Results Briefing:
Yes (For institutional investors and analysts)(Amounts are rounded down to the nearest million yen.)

1. Consolidated Financial Results for the 1st Quarter of the FY2018 (from January 1, 2018 to March 31, 2018)(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

Q1 FY2018
Q1 FY2017% Millions of Yen

4,433 34.5
3,295 -4.5

258
-78

Basic earnings per share
Q1 FY2018
Q1 FY2017% Millions of Yen% Millions of Yen% Millions of Yen% Millions of Yen

%

–
–

–
–

–
–

–
–

–
–

267
-82

142
-57

142
-57

101
-73

Diluted earnings per share

Yen

Yen

1.61
-0.64

1.60
-0.64

(Note) The Company conducted a 2-for-1 common stock split effective April 1, 2018. The basic earnings per share and the diluted earnings per share for Q1
FY2017 are calculated on the assumption that the said stock split was implemented at the beginning of the previous fiscal year.

(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%

26,063

18,736

18,73671.9

28,063

19,737

19,73770.3

End of Q1
FY2018End of FY2017
2. Dividends

Dividends Per Share
End of Q1

End of Q2

End of Q3

Year-end

Total

Yen

Yen

Yen

Yen

Yen

‒
‒

11.00

‒

11.00

22.00

5.50

‒

5.50

11.00

FY2017FY2018FY2018 (Forecast)(Note) Revisions to the latest forecast of dividends: No
The Company conducted a 2-for-1 common stock split effective April 1, 2018. The dividends in FY2017 are based on shares before the stock split. The
annual dividend per share for FY2018 (forecast) which does not take the stock split into account is estimated to be 22 yen.

3. Earnings Forecast for FY2018 (from January 1, 2018 to December 31, 2018)(Percentages below represent increases (decreases) from the same period of the previous fiscal year.)

Revenue
1st Half of FY2018
FY2018Operating profit

Profit attributable toowners of parent

Profit before tax

Basic earnings per
share

Millions of Yen%

Millions of Yen%

Millions of Yen%

Millions of Yen

%

Yen

9,400
20,400

18.6
12.1

950
3,300

3.4
9.6

930
3,260

2.7
9.0

600
2,100

7.3
8.7

6.85
24.02

(Note 1) Revisions to the latest forecast of earnings: No(Note 2) The forecasts for FY2018 take into account the impact of the 2-for-1 stock split effective April 1, 2018.

- 1 -* Notes(1) Changes in significant subsidiaries during the three months ended March 31, 2018 (changes of specified subsidiaries with changeof the scope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates
1. Changes in accounting policies required by IFRS: Yes
2. Other changes in accounting policies: No
3. Changes in accounting estimates: No(Note) For details, see “2. Summary Consolidated Financial Statements and Major Notes, (6) Notes regarding the summary
consolidated financial statements (Changes in accounting policies)” on page 12 of the attached material.
(3) Number of shares outstanding (common stock)
1. Number of shares outstanding (including
treasury stock)

Q1 FY2018

97,896,800

FY2017

97,896,800

2. Number of shares of treasury stock

Q1 FY2018

10,595,136

FY2017

9,348,136

3. Average number of shares outstanding
88,023,946
88,801,166
Q1 FY2018
Q1 FY2017(during the period)(Note) The Company conducted a 2-for-1 stock split effective April 1, 2018. The number of shares outstanding, number ofshares of treasury stock and average number of shares outstanding are calculated on the assumption that the stock split
was implemented at the beginning of the previous fiscal year.
* The quarterly earnings report is outside the scope of audit procedures by certified public accountants and audit firm.
* 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 ofwhat is described in the statements. Actual results may differ from these forecasts due to various factors.
(Availability of earnings supplementary explanatory documents and information on earnings results briefings)
The Company will hold a results briefing for institutional investors and analysts on Friday, May 11, 2018. A document to be used in
the briefing will be posted on the website.

- 2 -○Table of Contents of Attached Material
1. Qualitative Information on Operating Results, etc. for the Three Months Ended March 31, 2018..........................................
(1) Qualitative information on financial results .......................................................................................................................
(2) Qualitative information on financial position ....................................................................................................................
(3) Qualitative Information on consolidated earnings forecast ................................................................................................

4
4
4
5

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) ..............................................................................................................................
(Changes in accounting policies) .....................................................................................................................................
(Segment information) .....................................................................................................................................................

6
6
7
8
9
11
12
12
12
12

- 3 -

1. Qualitative Information on Operating Results, etc. for the Three Months Ended March 31, 2018
(1) Qualitative information on financial results
In the first three months of the fiscal year under review (January 1 through March 31, 2018), the Company posted revenue of
4,433 million yen (up 34.5% year on year). This was a result of growth in sales revenue, primarily due to the fact that the sales
revenue of the Company’s systems for auto maintenance factories and database provision service has increased from previous
first quarter, and the contribution of sales from Tajima Incorporated (“Tajima”), which was consolidated in July 2017.
Cost and expenses included cost of sales of 1,140 million yen (up 20.4% year on year) and selling, general and administrative
expenses of 3,032 million yen (up 24.8% year on year). This was attributable to an increase in the amount of goods purchased
due to growing sales and higher expenses required for management of increased shareholder and its incentives in addition to
the impact of Tajima above.
As a result, operating profit stood at 258 million yen (operating loss of 78 million yen in the same period of the previous year),profit before tax came to 267 million yen (loss before tax of 82 million yen in the same period of the previous year), and profit
attributable to owners of parent amounted to 142 million yen (loss attributable to owners of parent of 57 million yen in thesame period of the previous year).
The Company has a single business segment, which consists of IT services. A breakdown of sales by business domain is shownin the table below.
(Unit: Millions of yen)
DomainQ1 FY2017(From Jan. 1 toMar. 31, 2017)

Business Application
Software

Q1 FY2018(From Jan. 1 toMar. 31, 2018)

Year-on-year rate of change

1,794

2,689

49.9%

System Support

300

316

5.3%

Network Service

1,201

1,428

18.9%

Total

3,295

4,433

34.5%

(2) Qualitative information on financial position(i) Analysis of financial position(Assets)
Assets at the end of the first quarter of the consolidated fiscal year under review declined 2,000 million yen from the end of theprevious consolidated fiscal year, to 26,063 million yen. Current assets fell 2,287 million yen, to 9,114 million yen, and noncurrent assets increased 287 million yen, to 16,949 million yen. The decrease in current assets was mainly attributable todecreases in cash and cash equivalents of 1,560 million yen and operating and other receivables of 695 million yen. A key
factor contributing to the increase in non-current assets was 276 million yen in additional intangible assets.
(Liabilities)
Liabilities fell by 999 million yen from the end of the previous consolidated fiscal year, to 7,326 million yen. Current liabilities
fell 757 million yen, to 6,720 million yen, and non-current liabilities decreased by 242 million yen, to 606 million yen. The
main factor for the fall in current liabilities was decrease in income taxes payable of 449 million yen. The decrease in noncurrent liabilities was mainly attributable to a decrease in long-term interest-bearing debt of 226 million yen.
(Equity)
Equity declined 1,001 million yen from the end of the previous consolidated fiscal year, to 18,736 million yen. The decrease
was chiefly attributable to an increase in treasury shares of 766 million yen and a decrease in retained earnings of 292 million
yen.

- 4 -

(ii) Analysis of cash flows
Cash and cash equivalents (“cash”) at the end of the first quarter of the consolidated fiscal year under review declined 1,560
million yen from the end of the previous consolidated fiscal year, to 4,411 million yen.
The following is a description of the situation and major factors of each category of cash flows in the three months ended
March 31, 2018.
(Net cash from (used in) operating activities)
Cash flows provided by operating activities stood at 247 million yen (up 106.9% year on year), mainly reflecting a fall in tradeand other receivables of 693 million yen, profit before tax of 267 million yen, and depreciation and amortization expenses of
183 million yen, which offset a decrease in trade and other payables of 385 million yen and income taxes paid of 540 million
yen.
(Net cash from (used in) investing activities)
Cash flows used in investing activities came to 404 million yen (up 190.6% year on year), mainly due to the acquisition of
intangible assets of 386 million yen.
(Net cash from (used in) financing activities)
Cash flows used in financing activities were 1,396 million yen (up 9.8% year on year), chiefly attributable to the cash
dividends paid of 487 million yen and the purchase of treasury shares of 1,006 million yen.
(3) Qualitative Information on consolidated earnings forecast
There have been no changes in the consolidated results forecasts for the six months ending June 30, 2018 and for the fiscal
year ending December 31, 2018 announced in the “Summary of Financial Statements for the Fiscal Year Ended December 31,
2017” on February 14, 2018.
.

- 5 -

2. Summary Consolidated Financial Statements and Major Notes(1) Summary consolidated statement of financial position(Unit: Thousands of Yen)FY2017(As of Dec. 31, 2017)
AssetsCurrent assets
Cash and cash equivalents
Operating and other receivables
Inventories
Other current assets
Total current assets

Q1 FY2018(As of Mar. 31, 2018)

5,970,318
4,984,981
128,353
316,609
11,400,260

4,410,682
4,289,926
138,619274,312
9,113,539

424,747
11,739,040
2,982,588
57,0791,238,994
13,340206,881
16,662,670
28,062,930

417,662
11,739,040
3,259,001
39,6871,221,080
90,803
182,077
16,949,351
26,062,890

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

5,595,736–
645,323
568,415
83,140584,924
7,477,539

3,116,789
2,043,489
671,864
119,236
143,652
625,1226,720,152

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

461,122
227,131
139,786
19,927
847,967
8,325,505

235,424
222,720
138,125
9,991
606,261
7,326,413

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

7,147,905
7,116,269-2,736,155
8,009,349
200,056
19,737,424
19,737,424
28,062,930

7,147,905
7,180,665-3,502,648
7,717,011
193,545
18,736,478
18,736,478
26,062,890

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- 6 -(2) Summary consolidated statement of income(Unit: Thousands of Yen)
Q1 FY2017(From Jan. 1, 2017
to Mar. 31, 2017)

Q1 FY2018(From Jan. 1, 2018
to Mar. 31, 2018)

Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Other operating income
Other operating expense
Operating profit (loss)
Finance income
Finance cost
Equity in loss of affiliates
Profit (loss) before tax
Income tax
Profit (loss)

3,294,903-946,911
2,347,992-2,429,687
5,246-1,495-77,945
4,032-4,198-3,693-81,804
24,543-57,261

Profit (loss) attributable to owners of parent-57,261

4,432,827-1,140,085
3,292,742-3,032,114
4,622-7,724
257,526
13,500-2,836-1,589266,602-124,650
141,951

141,951
Earnings per share
Basic earnings (loss) per share (yen)Diluted earnings (loss) per share (yen)

-0.64
-0.64

- 7 -

1.61
1.60

(3) Summary consolidated statement of comprehensive income(Unit: Thousands of Yen)
Q1 FY2017(From Jan. 1, 2017
to Mar. 31, 2017)

Q1 FY2018(From Jan. 1, 2018
to Mar. 31, 2018)

Profit (loss)-57,261

141,951

Other 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

-13,952-19,040-13,952-19,040-7,969-14,747

5,875-6,803-2,094-21,551-16,046-40,591-73,307

101,360-73,307

101,360

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- 8 -(4) Summary consolidated statement of changes in equity
Q1 FY2017 (From Jan. 1, 2017 to Mar. 31, 2017)(Unit: Thousands of Yen)
Equity attributable to owners of parent
Capital stock
Balance as of January 1, 2017

Share premium

Treasury shares

Retained earnings

7,147,905

7,114,654-2,252,885

7,136,345

Profit (loss)

–

–

–

-57,261

Other comprehensive income

–

–

–

–

Total comprehensive income

–

–

–

-57,261

Purchase of treasury shares––-530,475–

Disposal of treasury shares–-1,0699,346–

Dividends–––-562,614

Total transactions with owners–-1,069-521,129-562,614

Balance as of March 31, 2017

7,147,905

7,113,585-2,774,014

6,516,471(Unit: Thousands of Yen)

Equity attributable to owners of parent
Other components of equity

Exchangedifferences ontranslation offoreign
operations

Warrants

Balance as of January 1, 2017

Net change infair value offinancial assets
of equity nature
measured at fairvalue throughothercomprehensive
incomeTotal equity

Total

Total

7,383

-37,586

43,37013,167

19,159,187

19,159,187

Profit (loss)

–

–

–

–

-57,261-57,261

Other comprehensive income–-2,094-13,952-16,046-16,046-16,046

Total comprehensive income–-2,094-13,952-16,046-73,307-73,307

Purchase of treasury shares

–

–

–

–

-530,475-530,475

Disposal of treasury shares

–

–

–

–

8,277

8,277

Dividends

–

–

–

–

-562,614-562,614

Total transactions with owners

–

–

–

–

-1,084,812-1,084,812

Balance as of March 31, 2017

7,383

-39,680

29,418-2,87918,001,067

18,001,067- 9 -Q1 FY2018 (From Jan. 1, 2018 to Mar. 31, 2018)(Unit: Thousands of Yen)
Equity attributable to owners of parent
Capital stock
Balance as of January 1, 2018

Share premium

Treasury shares

Retained earnings

7,147,905

7,116,269-2,736,155

–

–

–

7,147,905

7,116,269-2,736,155

8,062,078

Profit–––141,951

Other comprehensive income

–

–

–

–

Total comprehensive income

–

–

–

141,951

Purchase of treasury shares––-1,005,603–

Disposal of treasury shares–

64,396239,110–

Dividends–––-487,018

Share-based paymenttransactions

–

–

–

–

Changes in accounting
policies
Balance after restatement ofprior period’s financial results
after error corrections

8,009,349
52,729Total transactions with owners–

64,396-766,493-487,018

Balance as of March 31, 2018

7,147,905

7,180,665-3,502,648

7,717,011(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
income165,866-36,065

70,255200,056

19,737,424

19,737,424

–

–

–

–

52,72952,729165,866-36,065

70,255200,056

19,790,153

19,790,153
141,951

Warrants

Balance as of January 1, 2018
Changes in accounting
policies
Balance after restatement ofprior period’s financial results
after error corrections

Total

Total

Total equity

Profit––––141,951

Other comprehensive income–-21,551-19,040-40,591-40,591-40,591–-21,551-19,040-40,591

101,360

101,360

Purchase of treasury shares

–

–

–

–

-1,005,603-1,005,603

Disposal of treasury shares-7,069––-7,069296,437

296,437

–

–

–

–

-487,018-487,018

41,148––41,14841,14841,148

Total comprehensive income

Dividends
Share-based paymenttransactions
Total transactions with owners

34,079––34,079-1,155,036-1,155,036

Balance as of March 31, 2018

199,945-57,616

51,215

193,545

18,736,478

18,736,478- 10 -

(5) Summary consolidated statement of cash flow
(Unit: Thousands of Yen)
Q1 FY2017(From Jan. 1, 2017
to Mar. 31, 2017)
Cash flows from operating activities
Profit (loss) before tax
Depreciation and amortization expense
Share-based payment expenses
Finance income and costs
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 employees' bonuses payable
Increase (decrease) in consumption taxes payable
Other, net
SubtotalInterest received
Interest expenses paid
Income taxes refund (paid)
Cash flows from (used in) operating activities
Cash flows from investing activities
Acquisition of property, plant and equipment
Acquisition of intangible assets
Acquisition of investments
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee
deposits
Other, net
Cash flows from (used in) investing activities
Cash flows from financing activities
Repayments of long-term loans payable
Repayments of lease obligations
Cash dividends paid
Purchase of treasury shares
Proceeds from sales of treasury shares
Cash flows from (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 thequarter- 11 -Q1 FY2018(From Jan. 1, 2018
to Mar. 31, 2018)-81,804
151,396–
166
3,693
1,365,036-12,259-680,694
88,596
4,162-140,425
697,866244-2,346-576,596
119,168

266,602
182,726
41,148-10,665
1,589
693,320-10,266-384,955-27,595
9,330
26,566
787,801139-1,401-540,022
246,517-3,368-111,473-15,000-10,501-13,929-385,642–-29,182

338

3,331

1,048
-138,957

21,681-403,741-177,280-9,795-562,614-530,475
8,277-1,271,887-185,350-14,841-487,018-1,005,603
296,437-1,396,375-4,680-6,036-1,296,355
7,738,206-1,559,635
5,970,318

6,441,850

4,410,682

(6) Notes regarding the summary consolidated financial statements(Notes on going concern assumption)
Not applicable.
(Changes in accounting policies)
Beginning in the first three months of the fiscal year under review, the Group has adopted IFRS 15 “Revenue from Contracts
with Customers” (released in May 2014) and “Clarification to IFRS 15” (released in April 2016) (collectively referred to as“IFRS 15” below).
The Group retroactively applies IFRS 15 according to transitional measures and recognizes the cumulative effect of the start ofapplication as the correction of the balance of retained earnings at the beginning of the first three months of the fiscal year
under review.
Due to the application of IFRS 15, the Group recognizes revenue by applying the following five steps, excluding interest,
dividend income, etc. based on IFRS 9 “Financial Instruments.”
Step 1: Identify the contract with a customer.
Step 2: Identify the performance obligations in the contract.
Step 3: Determine the transaction price.
Step 4: Allocate the transaction price to the performance obligations in the contract.
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation.
Pursuant to the above, the Group recognizes revenue as it satisfies performance obligations in the contracts with customers at a
certain point or for a certain period.
The Group recognizes the portion of an increase in the costs for obtaining contracts with customers that is expected to be
recoverable as assets (referred to as “assets recognized from the costs for obtaining a contract with a customer” below). An
increase in costs for obtaining a contract with a customer is a cost incurred for the acquisition of a contract with a customer,
which would have not arisen without the acquisition of such a contract. Assets recognized from the costs for obtaining acontract with a customer are written down in equal amounts over five years according to the estimated term of a contract with acustomer.
As a result, other non-current assets and retained earnings increased by 76,000,000 yen and 52,729,000 yen, respectively, anddeferred tax assets decreased by 23,271,000 yen in the condensed quarterly consolidated statement of financial position at the
beginning of the first three months of the fiscal year under review in comparison to the case to which the previous accounting
standards are applied. The impact of the application of IFRS 15 on the profit and loss in the summary consolidated statement ofincome for the first three months of the fiscal year under review is negligible in comparison to the case to which the previous
accounting standards are applied.
Beginning the first three months of the fiscal year under review, advances received from customers, which were previously
included in trade and other payables, are presented as contract liabilities due to the application of IFRS 15.
As a result, contract liabilities increased by 2,043,489,000 yen and trade and other payables decreased by the same amount in
the summary consolidated statement of financial position at the end of the first three months of the fiscal year under review incomparison to the case to which the previous accounting standards are applied.
(Segment information)
Since the Group has only a single business segment (IT services), the statement is omitted.

- 12 -