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, 2019 [IFRS] (Consolidated)
May 10, 2019
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 off to the nearest million yen.)

1. Consolidated Financial Results for the 1st Quarter of the FY2019 (from January 1, 2019 to March 31, 2019)(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 ofYen

Q1 FY2019
Q1 FY2018%

Millions ofYen

4,925 11.1
4,433 34.5%

Millions ofYen

420 63.1
258–

Basic earnings per share
Q1 FY2019
Q1 FY2018%

Millions ofYen

423 58.8
267–

Millions ofYen%

274 92.8
142–%274 92.8
142–

Millions ofYen%

228 125.3
101–

Diluted earnings per share

Yen

Yen

3.13
1.61

3.09
1.60

(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
FY2018 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%

28,01920,793

20,793

74.2

29,413

21,033

21,03371.5

End of Q1
FY2019End of FY2018
2. Dividends

Dividends Per Share
End of Q1

End of Q2

End of Q3

Year-end

Total

Yen

Yen

Yen

Yen

Yen

‒
‒

5.50

‒

6.50

12.00

6.50

‒

6.50

13.00

FY2018FY2019FY2019 (Forecast)(Note) Revisions to the latest forecast of dividends: No

3. Earnings Forecast for FY2019 (from January 1, 2019 to December 31, 2019)(Percentages below represent increases (decreases) from the same period of the previous fiscal year.)

Revenue
1st Half of FY2019
FY2019Operating 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

10,60022,000

5.1
3.4

1,700
4,500

10.2
9.4

1,700
4,500

9.8
9.6

1,000
2,800

0.2
5.4

11.45
32.07

(Note 1) Revisions to the latest forecast of earnings: No- 1 -* Notes(1) Changes in significant subsidiaries during the three months ended March 31, 2019 (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 FY201997,896,800

FY201897,896,800

2. Number of shares of treasury stock

Q1 FY201910,588,336

FY2018

10,588,336

3. Average number of shares outstanding
87,308,464
88,023,946
Q1 FY2019
Q1 FY2018(during the period)(Note) The Company conducted a 2-for-1 stock split effective April 1, 2018. The average number of shares for the firstquarter of the fiscal year ending December 2018 is calculated on the assumption that the stock split was conducted at
the beginning of the previous period.
* 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 10, 2019.
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, 2019..........................................
(1) Qualitative information on financial results .......................................................................................................................
(2) Qualitative information on financial position ....................................................................................................................
(3) Qualitative Information on consolidated earnings forecast ................................................................................................

4
4
5
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
13

- 3 -

1. Qualitative Information on Operating Results, etc. for the Three Months Ended March 31, 2019(1) Qualitative information on financial results
In the first three months of the fiscal year under review (January 1, 2019 through March 31, 2019), the Japanese economy wason a moderate recovery trend due to steady consumer spending and capital expenditure as the improvement of employment andincome environment continued despite some weakness in export and production. In the information service segment, to which
the Company belongs, investments of companies continue to be steady on the back of diversified investments in strategic areas,such as digital marketing and big data analysis, and in IT systems in order to improve productivity due to the promotion ofworkstyle reform.
In this situation, the Group set “Acceleration to a package vendor to platformer” in its medium-/long-term management policy.
In the first three months of the fiscal year under review, the Group moved forward with the development of the .c (dot c) series,
which is a successor of the industry-specific application .NS (dot n s) series to enhance services that run on a digital businessplatform Broadleaf Cloud Platform. In January 2019, it initiated the provision of the welfare representative service Broadleaf
Club VIP Service.
To accelerate the increase in sales of the work analysis/optimization software OTRS, the Company is also currently
strengthening sales activities in Japan for a wide range of industries, such as manufacturing, logistics, healthcare/nursing care,
agriculture and education. In addition, to strengthen its sales channel overseas, the Company concluded a strategic partnershipwith Kaizen Global Enterprises (head office: United Arab Emirates), which provides consulting services in more than 60
countries worldwide, in February 2019, enhancing its strategic efforts over the medium-/long term.
As a result, in the first three months of the fiscal year under review (January 1, 2019 through March 31, 2019), the Company
posted revenue of 4,925 million yen (up 11.1% year on year), operating profit of 420 million yen (up 63.1% year on year),profit before tax of 423 million yen (up 58.8% year on year), and profit attributable to owners of parent of 274 million yen (up92.8% 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)
DomainQ1 FY2018(From Jan. 1 toMar. 31, 2018)

Q1 FY2019(From Jan. 1 toMar. 31, 2019)Year-on-year rate of change

Platforms

2,168

2,303

6.2%

Applications

2,265

2,622

15.8%

4,433

4,925

11.1%

Total

(Note) From the first quarter of the consolidated fiscal year under review, based on the Medium-term Management Strategies<2019-2021> described in the “FY12/2018 Business Results Briefing,” which was announced on February 14, 2019,the classification of the revenue by segment is changed in line with the progress of the Group’s growth strategies. The
figures for the first three months of the previous fiscal year are also indicated based on this new classification.

- 4 -(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 1,394 million yen from the end of theprevious consolidated fiscal year, to 28,019 million yen. Current assets fell 3,854 million yen, to 6,765 million yen, and noncurrent assets increased 2,460 million yen, to 21,254 million yen. The decrease in current assets was mainly attributable todecreases in cash and cash equivalents of 3,368 million yen. The main factor contributing to the increase in non-current assets
was 856 million yen in additional property, plant and equipment, 591 additional intangible assets, and 1,020 million yen in
additional other non-current financial assets.
(Liabilities)
Liabilities at the end of the first quarter of the consolidated fiscal year under review declined 1,154 million yen from the end of
the previous consolidated fiscal year, to 7,226 million yen. Current liabilities fell 1,340 million yen, to 6,573 million yen, andnon-current liabilities increased by 186 million yen, to 653 million yen. The main factor for the fall in current liabilities was adecrease in income taxes payable of 852 million yen and a decrease in other current liabilities of 499 million yen. The increasein non-current liabilities was mainly attributable to an increase in long-term interest-bearing debt of 161 million yen.
(Equity)
Equity at the end of the first quarter of the consolidated fiscal year under review declined 240 million yen from the end of theprevious consolidated fiscal year, to 20,793 million yen. The decrease was chiefly attributable to a decrease in retained
earnings of 255 million yen.
(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 3,368
million yen from the end of the previous consolidated fiscal year, to 2,258 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, 2019.
(Net cash from (used in) operating activities)
Net cash used in operating activities stood at 538 million yen (net cash provided of 247 million yen in the same period theprevious year), mainly reflecting falls in profit before tax of 423 million yen, depreciation and amortization expenses of 440
million yen, and trade and other receivables of 436 million yen, which partially offset decreases in operating and otherpayables of 436 million yen, and in employees' bonuses payable of 410 million yen, and income taxes paid of 992 million yen.
(Net cash from (used in) investing activities)
Net cash used in investing activities came to 1,888 million yen (up 367.6% year on year), mainly due to the acquisition of
intangible assets of 830 million yen and the acquisition of investments of 1,048 million yen.
(Net cash from (used in) financing activities)
Net cash used in financing activities came to 942 million yen (down 32.5% year on year), chiefly attributable to the repaymentsof long-term loans payable of 156 million yen, repayments of lease obligations of 218 million yen, and cash dividends paid of
568 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, 2019 and for the fiscal
year ending December 31, 2019 announced in the “Summary of Financial Statements for the Fiscal Year Ended December 31,
2018” on February 14, 2019.
.

- 5 -

2. Summary Consolidated Financial Statements and Major Notes(1) Summary consolidated statement of financial position(Unit: Thousands of Yen)FY2018(As of Dec. 31, 2018)
AssetsCurrent assets
Cash and cash equivalents
Operating and other receivables
Inventories
Other current financial assets
Other current assets
Total current assets

Q1 FY2019(As of Mar. 31, 2019)

5,626,723
4,447,390
238,46130
306,121
10,618,726

2,258,460
4,009,651
140,880–
355,964
6,764,955

442,641
11,739,040
4,633,235
37,152
1,405,853
115,372
420,864
18,794,156
29,412,881

1,298,967
11,739,040
5,224,649
33,3252,425,383
112,578
419,751
21,253,693
28,018,648

Liabilities and Equity
Liabilities
Current liabilities
Operating and other payables
Contract liabilities
Short-term interest-bearing debt
Income taxes payable
Other current financial liabilities
Other current liabilities
Total current liabilities

3,623,665
1,616,791
378,551
1,004,527
72,8201,216,718
7,913,072

3,176,144
1,470,294
870,943
152,735
185,108
717,616
6,572,839

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

84,738196,345
133,207
52,097466,386
8,379,457

246,224
191,405
133,296
81,883652,8097,225,648

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
7,180,289-3,500,454
9,759,561
446,124
21,033,424
21,033,424
29,412,881

7,147,905
7,180,289-3,500,454
9,504,707
460,553
20,793,000
20,793,000
28,018,648

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 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
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 -Q1 FY2019(From Jan. 1, 2019
to Mar. 31, 2019)

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

4,925,091-1,363,706
3,561,385-3,163,982
24,704-2,042420,065
10,083-3,524-3,234423,391-149,709
273,682

141,951

273,682

1.61
1.60

3.13
3.09

(3) Summary consolidated statement of comprehensive income(Unit: Thousands of Yen)
Q1 FY2018(From Jan. 1, 2018
to Mar. 31, 2018)

Q1 FY2019(From Jan. 1, 2019
to Mar. 31, 2019)

Profit141,951

273,682

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

-19,040-43,830-19,040-43,830-14,747-1,304-6,803-218-21,551-1,522-40,591-45,352

101,360

228,330

101,360

228,330

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 FY2018 (From Jan. 1, 2018 to Mar. 31, 2018)(Unit: Thousands of Yen)
Equity attributable to owners of parent
Capital stock

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–––141,951

Other comprehensive income

–

–

–

–

Total comprehensive income

–

–

–

141,951

Purchase of treasury shares

–

–

–

Disposal of treasury shares–

64,396-1,005,603
239,110

Dividends–––-487,018

Share-based paymenttransactions

–

–

–

–

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

Total 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

141,951-40,591

141,951-40,591

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

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

101,360

101,360

Purchase of treasury shares

–

–

–

–

Disposal of treasury shares-7,069––-7,069––––-1,005,603
296,437-487,018-1,005,603
296,437-487,018

41,148––41,14841,14841,148Dividends
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- 9 -Q1 FY2019 (From Jan. 1, 2019 to Mar. 31, 2019)(Unit: Thousands of Yen)
Equity attributable to owners of parent
Capital stock

Share premium

Treasury shares

Retained earnings

7,147,905

7,180,289-3,500,454

–

–

–

7,147,905

7,180,289-3,500,454

9,798,530

Profit–––273,682

Other comprehensive income

–

–

–

–

–

–

–

Dividends–––

273,682-567,505

Share-based paymenttransactions

–

–

–

–

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

Total comprehensive income

9,759,561
38,969Total transactions with owners

–

–

–

-567,505

Balance as of March 31, 2019

7,147,905

7,180,289-3,500,454

9,504,707(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
income363,850-49,109131,383

446,124

21,033,424

21,033,424

–

–

–

–

38,96938,969363,850-49,109131,383

446,124

21,072,393

21,072,393

273,682-45,352

273,682-45,352

Warrants

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

Total

Total

Total equity

Profit––––Other comprehensive income–-1,522-43,830-45,352–-1,522-43,830-45,352

–

–

–

–

228,330-567,505

228,330-567,505

59,782––

59,782

59,782

59,782

Total transactions with owners

59,782––

59,782-507,723-507,723

Balance as of March 31, 2019423,632-50,631

87,553

460,553

20,793,000

20,793,000

Total comprehensive income
Dividends
Share-based paymenttransactions- 10 -

(5) Summary consolidated statement of cash flow
(Unit: Thousands of Yen)
Q1 FY2018(From Jan. 1, 2018
to Mar. 31, 2018)
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
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 contract liabilities
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 (during the first threemonths of the previous consolidated fiscal year)
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 -Q1 FY2019(From Jan. 1, 2019
to Mar. 31, 2019)

266,602
182,726
41,148-10,665
1,589
693,320-10,266-384,955-27,595-87,063
9,330
113,629
787,801139-1,401-540,022
246,517423,391
440,12959,782-6,5593,234
435,661
97,696-435,605-409,771-146,497-17,093
10,975455,341
4-1,666-991,574-537,895-13,929-385,642–-29,182-10,435-829,926-1,048,346-8,358

3,331

1,984

21,681-403,741

7,158-1,887,922-185,350-156,000-14,841-217,814-487,018-1,005,603
296,437–-1,396,375-567,505––-616-941,935-6,036-512-1,559,635
5,970,318-3,368,264
5,626,723

4,410,682

2,258,460

(6) Notes regarding the summary consolidated financial statements(Notes on going concern assumption)
Not applicable.
(Changes in accounting policies)
The important accounting policy applied to the Summary Quarterly Financial Statements was also applied to the consolidated
financial statements for the previous consolidated fiscal year, excluding the following.
The income tax expense during the first three months of the consolidated fiscal year under review is calculated based on theeffective tax rate for the fiscal year of estimate.
Lease
The Group has applied IFRS 16 Leases (released in January 2016, hereinafter, “IFRS 16”) since the first quarter of theconsolidated fiscal year under review. For the application of IFRS 16, the transitional provision under C5 (b) is taken, and thecumulative effects of the start of application is recognized as retained earnings on the date of application (January 1, 2019).
During the period of comparison, the Company, as a borrower, classifies the type of lease with which risk and economic value
for owning it is transferred effectively as a finance lease, and posts assets/liabilities related to lease transactions. Other types oflease contracts are classified as operating leases, and the lease payment based on the operating lease is recognized as expenses
on a straight-line basis during the lease period.
In the transition to IFRS 16, shortcuts on a practical level under IFRS 16 C3 are chosen regarding whether a lease is included
in a contract, and the judgment under IAS 17 Leases (hereinafter, “IAS 17”) and IFRIC 4 “Judgment on whether a lease isincluded in a contract” is continued.
Lease liabilities in a lease transaction are initially measured as the present value discounted using a calculated interest rate of
the unsettled portion of the total lease payment on the start date of the lease. If calculation of the interest rate of the lease isdifficult, the Group’s additional borrowing interest rate is used, and the Group generally uses the additional borrowing interest
rate as the discount rate.
With regard to the right of use asset, the initial measurement is conducted on the initial measured amount of lease liabilities
adjusted by prepaid lease payments, etc. “Depreciation is conducted for the right of use asset on a regular basis during the lease
period.
The Group includes the right of use assets in property, plant and equipment and lease liabilities in interest-bearing debt in thesummary consolidated statement of financial position.
The Group judges based on the substance of a contract whether the contract is a lease or not, or whether a lease is included in
the contract, even if the contract is not a type of lease from the standpoint of the law.
With regard to a lease for which the lease period is terminated within 12 months and a lease with a small amount of underlying
assets, the lease fee related to the lease is recognized as expenses during the lease period.
The Group recognizes lease liabilities for leases, to which IAS 17 was applied in the past for classification as operating leases,on the start date of the application of IFRS 16. The lease liabilities are measured with the present value of the remaining leasefee discounted using the borrower’s additional borrowing interest rate on the start date of the application. The weighted
average of the borrower’s additional borrowing interest rate applied to lease liabilities, which is recognized in the Summary
Quarterly Financial Statements on the start date of the application, is 0.54%.
For the measurement of the right of use assets, a method is adopted in which the measured amount of lease liabilities isadjusted by prepaid lease fee and unsettled lease fee.
In addition, the Group uses the following shortcut methods on a practical level for the application of IFRS 16.
- A single discount rate is applied to a portfolio of leases with rationally similar characteristics-

With regard to a contract with an extension or cancellation option, ex-post judgment is made for the calculation of thelease period.

-

A replacement for impairment loss review is based on the evaluation of the disadvantages of applying IAS 37 “Noncurrent provisions, contingent liabilities, and contingent assets” to a lease immediately before the start date of the-application.
Initial direct cost is excluded from the right of use assets on the start date of the application.

As a result, in the (beginning-of-year) Summary Quarterly Financial Statements of the first quarter of the consolidated fiscal
year under review, property, plant and equipment, and interest-bearing debt increased by 942,455 thousand yen and 886,287
thousand yen, respectively.
The impact on the summary consolidated statement of income is limited.
In addition, in the summary consolidated statement of cash flow, cash flows from financing activities declined by 200,379- 12 -

thousand yen, while cash flows from operating activities increased by the same amount during the first three months of theconsolidated fiscal year under review.
The list of adjustment below indicates the non-cancelable operating lease contract to which IAS 17 was applied, which wasdisclosed at the end of the previous consolidated fiscal year, and lease liabilities on the start date of the application recognizedin the summary consolidated statement of financial position.
(Unit: Thousands of Yen)
AmountNon-cancellable operating lease contract disclosed on December 31, 2018
Non-cancellable operating lease contract disclosed on December 31, 2018
(after discounting by additional borrowing rate)
Finance lease obligations (as of December 31, 2018)
Cancellable lease operating lease contract
Other
Lease obligations as of January 1, 2019452,272

429,418
147,288418,276
38,592
1,033,574(Segment information)
Since the Group has only a single business segment (IT services), the statement is omitted.

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