The following information was originally prepared and published by the Company in Japanese as it contains timely disclosure materials to be submitted to theTokyo Stock Exchange. This English translation is for your convenience only. To the extent there is any discrepancy between this English translation and theoriginal Japanese version, please refer to the Japanese version.

Summary of Financial Statements for the First Half of the
Fiscal Year Ending December 31, 2018 [IFRS] (Consolidated)
August 3, 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 Half of the FY2018 (from January 1, 2018 to June 30, 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

H1 FY2018
H1 FY2017% Millions of Yen

10,090 27.3
7,926 -2.9

% Millions of Yen

1,542 67.9
918 -36.3

Basic earnings per share
H1 FY2018
H1 FY2017% Millions of Yen

1,548 70.9
906 -36.7% Millions of Yen

998 78.5
559 -39.7% Millions of Yen

998 78.5
559 -39.7%

942 69.5
556 -33.3

Diluted earnings per share

Yen

Yen

11.39
6.31

11.31
6.31

(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 Q2
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%

27,637

19,618

19,61871.0

28,063

19,737

19,73770.3

End of Q2
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
5.50

‒

11.00

22.00

‒

6.50

12.00

FY2017FY2018FY2018 (Forecast)(Note) Revisions to the latest forecast of dividends: Yes
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 24 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
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

21,200

16.5

3,900

29.5

3,880

29.8

2,500

29.4

28.58

(Note 1) Revisions to the latest forecast of earnings: Yes(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 six months ended June 30, 2018 (changes of specified subsidiaries with change ofthe 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)

Q2 FY2018

97,896,800

FY2017

97,896,800

2. Number of shares of treasury stock

Q2 FY2018

10,592,336

FY2017

9,348,136

3. Average number of shares outstanding
87,661,382
88,630,590
Q2 FY2018
Q2 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 Monday, August 6, 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 Six Months Ended June 30, 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

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1. Qualitative Information on Operating Results, etc. for the Six Months Ended June 30, 2018
(1) Qualitative information on financial results
In the first six months of the fiscal year under review (January 1 through June 30, 2018), the Company posted revenue of
10,090 million yen (up 27.3% year on year). This was a result of growth in sales revenue, primarily due to the fact that thesales revenue of the Company’s systems for auto maintenance factories and database provision service has increased fromprevious second quarter, and the contribution of sales from Tajima Incorporated (“Tajima”), which was consolidated in July
2017.
Cost and expenses included cost of sales of 2,568 million yen (up 22.0% year on year) and selling, general and administrative
expenses of 5,989 million yen (up 22.1% year on year). This was chiefly attributable to an increase in the amount of goods
purchased due to growing sales and an increase in personnel expenses and higher expenses required for shareholder incentives
in addition to the impact of Tajima above.
As a result, operating profit stood at 1,542 million yen (up 67.9% year on year), profit before tax came to 1,548 million yen (up70.9% year on year), and profit attributable to owners of parent amounted to 998 million yen (up 78.5% year on 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)
Domain

1st Half, FY2017(From Jan. 1 toJun. 30, 2017)

Business Application
Software1st Half, FY2018(From Jan. 1 toJun. 30, 2018)

Year-on-year rate of change

4,889

6,596

34.9%

System Support

612

649

6.1%

Network Service

2,425

2,844

17.3%

Total

7,926

10,09027.3%(2) Qualitative information on financial position(i) Analysis of financial position(Assets)
Assets at the end of the second quarter of the consolidated fiscal year under review declined 426 million yen from the end of
the previous consolidated fiscal year, to 27,637 million yen. Current assets fell 1,114 million yen, to 10,286 million yen, andnon-current assets increased 688 million yen, to 17,351 million yen. The decrease in current assets was mainly attributable todecreases in cash and cash equivalents of 1,080 million yen. A key factor contributing to the increase in non-current assets was
714 million yen in additional intangible assets.
(Liabilities)
Liabilities fell by 306 million yen from the end of the previous consolidated fiscal year, to 8,019 million yen. Current liabilities
rose 111 million yen, to 7,589 million yen, and non-current liabilities decreased by 417 million yen, to 431 million yen. The
decrease in non-current liabilities was mainly attributable to a decrease in long-term interest-bearing debt of 387 million yen.
(Equity)
Equity declined 120 million yen from the end of the previous consolidated fiscal year, to 19,618 million yen. The decrease waschiefly attributable to an increase in treasury shares of 766 million yen, despite an increase in retained earnings of 573 million
yen.

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(ii) Analysis of cash flows
Cash and cash equivalents (“cash”) at the end of the second quarter of the consolidated fiscal year under review declined 1,080
million yen from the end of the previous consolidated fiscal year, to 4,890 million yen.
The following is a description of the situation and major factors of each category of cash flows in the six months ended June 30,
2018.
(Net cash from (used in) operating activities)
Cash flows provided by operating activities stood at 1,516 million yen. The main causes were profit before tax of 1,548 million
yen and depreciation and amortization expenses of 375 million yen, which offset income taxes paid of 540 million yen.
(Net cash from (used in) investing activities)
Cash flows used in investing activities came to 1,008 million yen, mainly due to the acquisition of intangible assets of 986
million yen.
(Net cash from (used in) financing activities)
Cash flows used in financing activities were 1,583 million yen. The main causes were the purchase of treasury shares of 1,006
million yen, cash dividends paid of 487 million yen and repayments of long-term loans payable of 341 million yen, despite
proceeds from sales of treasury shares of 297 million yen.
(3) Qualitative Information on consolidated earnings forecast
With respect to the consolidated earnings forecast for the fiscal year ending December 31, 2018, please refer to the “Notice
regarding revision of the consolidated earnings forecast and dividend forecast (dividend increase)” announced today.
.

- 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 financial assets
Other current assets
Total current assets

Q2 FY2018(As of Jun. 30, 2018)

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

4,889,888
5,008,274
125,24350
262,908
10,286,362

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

417,126
11,739,040
3,696,330
39,304
1,159,647
104,807194,253
17,350,506
27,636,868

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

3,332,991
1,910,991
677,282
555,488
138,480
973,376
7,588,606

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

74,458
202,655
137,605
15,863
430,5818,019,187

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
7,181,262-3,501,927
8,581,874
208,567
19,617,681
19,617,681
27,636,868

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)
1st Half, FY2017(From Jan. 1, 2017
to Jun. 30, 2017)
Revenue
Cost of sales
Gross profit
Selling, general and administrative expenses
Other operating income
Other operating expense
Operating profit
Finance income
Finance cost
Equity in loss of affiliates
Profit before tax
Income tax
ProfitProfit attributable to owners of parent
Earnings per share
Basic earnings per share (yen)Diluted earnings per share (yen)- 7 -1st Half, FY2018(From Jan. 1, 2018
to Jun. 30, 2018)

7,926,346-2,105,441
5,820,904-4,906,680
7,121-3,001
918,344
5,718-11,000-7,247905,815-346,462
559,353

10,089,720-2,567,953
7,521,767-5,988,769
26,623-17,633
1,541,988
15,293-4,989-4,5081,547,784-549,573
998,211559,353998,211

6.31
6.31

11.39
11.31

(3) Summary consolidated statement of comprehensive income(Unit: Thousands of Yen)
1st Half, FY2017(From Jan. 1, 2017
to Jun. 30, 2017)
Profit (loss)
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
Remeasurements of defined benefit plans
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- 8 -1st Half, FY2018(From Jan. 1, 2018
to Jun. 30, 2018)559,353998,211-275-47,496

–

8,603

-275

-38,893-9,055-11,797

5,569-5,671-3,486-17,467-3,761-56,360

555,593

941,851555,593

941,851

(4) Summary consolidated statement of changes in equity
1st Half, FY2017 (From Jan. 1, 2017 to Jun. 30, 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)

–

–

–

559,353

Other comprehensive income

–

–

–

–

Total comprehensive income

–

–

–

559,353

Purchase of treasury shares––-530,475–

Disposal of treasury shares–-2,97325,234–

Dividends–––-562,614

Reclassification from sharepremium to retained earnings

–

750

–

-750

Reclassification from othercomponents of equity toretained earnings

–

–

–

-2,196

Total transactions with owners
Balance as of June 30, 2017–

-2,223-505,241-565,561

7,147,905

7,112,431-2,758,126

7,130,138(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)

–

–

–

–

559,353559,353

Other comprehensive income–-3,486-275-3,761-3,761-3,761

Total comprehensive income–-3,486-275-3,761

555,593555,593

Purchase of treasury shares

–

–

–

–

-530,475-530,475

Disposal of treasury shares

–

–

–

–

22,261

22,261Dividends

–

–

–

–

-562,614-562,614

Reclassification from sharepremium to retained earnings

–

–

–

–

–

–

Reclassification from othercomponents of equity toretained earnings

–

–

2,196

2,196

–

–

Total transactions with owners
Balance as of June 30, 2017

–

–

2,196

2,196

-1,070,828-1,070,828

7,383-41,072

45,292

11,60318,643,951

18,643,951- 9 -1st Half, FY2018 (From Jan. 1, 2018 to Jun. 30, 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

8,009,349–––

52,7297,147,905

7,116,269-2,736,155

8,062,078

Profit–––998,211

Other comprehensive income

–

–

–

–

Total comprehensive income

–

–

–

998,211Purchase of treasury shares––-1,005,603–

Disposal of treasury shares–

64,993239,830–

Dividends–––-487,018

Share-based paymenttransactions

–

–

–

–

Reclassification from othercomponents of equity toretained earnings

–

–

–

8,603

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

Total transactions with owners
Balance as of June 30, 2018–

64,993-765,773-478,414

7,147,905

7,181,262-3,501,927

8,581,874(Unit: Thousands of Yen)

Equity attributable to owners of parent
Other components of equity
Net change infair value of
Exchangefinancial assets
differences on of equity nature Remeasurementranslation of
measured at
ts of definedforeignfair value
benefit plans
operations
through othercomprehensive
incomeWarrants

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

Total equity

Total

Total

165,866-36,065

70,255–200,056

19,737,424

19,737,424

–

–

–

–

–

52,72952,729165,866-36,065

70,255–200,056

19,790,153

19,790,153
998,211

Profit

–

–

–

–

–

998,211

Other comprehensive income–-17,467-47,496

8,603-56,360-56,360-56,360–-17,467-47,496

8,603-56,360

941,851

941,851

Purchase of treasury shares

–

–

–

–

–

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

Disposal of treasury shares-8,829–––-8,829295,994

295,994

–

–

–

–

–

-487,018-487,018

82,304–––82,30482,30482,304–––-8,603-8,603––

Total comprehensive income

Dividends
Share-based paymenttransactions
Reclassification from othercomponents of equity toretained earnings
Total transactions with owners

73,475––-8,60364,872-1,114,323-1,114,323

Balance as of June 30, 2018239,341-53,532

22,759–208,567

19,617,681

19,617,681- 10 -

(5) Summary consolidated statement of cash flow
(Unit: Thousands of Yen)
1st Half, FY2017(From Jan. 1, 2017
to Jun. 30, 2017)
Cash flows from operating activities
Profit before tax
Depreciation and amortization expense
Share-based payment expenses
Finance income and costs
Equity in loss (earnings) of affiliates
Loss (gain) on sales of property, plant and equipment
and intangible assets
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
Dividends received
Interest expenses paid
Income taxes paid
Cash flows from (used in) operating activities
Cash flows from investing activities
Acquisition of property, plant and equipment
Proceeds from sales 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
Other, net
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 -

1st Half, FY2018(From Jan. 1, 2018
to Jun. 30, 2018)

905,815
326,743
–
5,282
7,247

1,547,784
374,875
82,304-10,304
4,508

1,467

–

-147,276-156-88,914204,678-25,732-25,489
1,163,665
994
1,549-4,275-599,622
562,311-26,545
3,110-149,699
222,073-9,101
17,114
2,056,118
334
1,597-2,514-540,022
1,515,514-38,334
50,407-434,752-15,000-10,874-39,193–-985,601–-29,619

3,637

21,979-19,237-464,153

24,590-1,007,843-333,280-18,657-562,614-530,475
22,261-1,247-1,424,012-341,350-28,686-487,018-1,005,603
297,157-17,400-1,582,899-4,973-5,201-1,330,827
7,738,206-1,080,430
5,970,318

6,407,379

4,889,888

(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, 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.
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 in comparison to the case to which the previous accounting standards areapplied. The impact of the application of IFRS 15 on the profit and loss in the summary consolidated statement of income forthe first six 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, advances received from customers, which were previously included in tradeand other payables, are presented as contract liabilities due to the application of IFRS 15.
As a result, contract liabilities increased by 1,910,991,000 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 six 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.

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