ブロードリーフ（3673） – [Delayed] Summary of Financial Statements the First Quarter of the Fiscal Year Ending December 31 2022 [IFRS] (Consolidated)

The following information was originally prepared and published by the Company in Japanese as it contains timely disclosure materials to be submitted to the Tokyo Stock Exchange. This English translation is for your convenience only. If there is any discrepancy between this English translation and the original Japanese version, please refer to the Japanese version. Summary of Financial Statements the First Quarter of the Fiscal Year Ending December 31 2022 [IFRS] (Consolidated) May 11, 2022 Broadleaf Co., Ltd Stock listing: Representative: Scheduled date of commencement of dividend payout Earnings Supplementary Explanatory Documents Earnings Results Briefing: Tokyo Stock Exchange Prime Market Representative Director and President Kenji Oyama Yes Yes (For institutional investors and analysts) 1. Consolidated Financial Results for 1Q FY2022 (January 1, 2022 to March 31, 2022) (1)Consolidated Operating Results (Cumulative) (Figures are rounded to the nearest million yen) (Percentage below represents increase (decrease) from the same period of previous year) Revenue Operating profit Profit before tax Profit Profit attributable to owners of the parent Total comprehensive income Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen % Millions of yen 1Q FY2022 1Q FY2021 3,254 -37.4 -737 – 5,195 -1.6 672 10.1 -646 669 – 6.8 -570 427 – 3.5 -570 426 – 3.1 -586 504 89.0 Basic earnings per share Diluted earnings per share Yen -6.48 4.86 Yen -6.48 4.77 1Q of FY2022 1Q of FY2021 (2)Consolidated Financial Position Total assets Total equity Equity attributable to owners of the parent Percentage of equity attributable to owners of the parent Millions of yen 32,853 34,476 Millions of yen 25,186 26,114 Millions of yen 25,186 26,114 1Q of FY2022 FY2021 2.Dividend Status End of 1Q End of 2Q Year-end Total Dividend per share End of 3Q FY2021 FY2022 FY2022 (forecast) Yen – – Yen 4.00 – Yen – – Yen 4.70 – Yen 8.70 – (NOTE) 1. Revisions to the most recently announced dividend forecasts: None 2. Dividend for FY2022 is not determined at the time. 3.Consolidated Results Forecasts for FY2022 (January 1, 2022 to December 31, 2022) Profit before tax Operating profit Revenue (Percentage below represents increase (decrease) from the same period of previous year) Profit attributable to owners of the parent Basic earnings per share Millions of yen 6,000 % Millions of yen -2,100 -39.6 % Millions of yen -2,000 – % Millions of yen -2,100 – 12,300 -40.4 -4,800 – -4,800 – -5,000 % – – Yen -23.80 -56.62 1H FY2022 FY2022 (NOTE)Revisions to the latest announced earnings forecasts: Yes % – % 76.7 75.7 ※ Notes consolidation): None (1)Changes in significant subsidiaries during the current period (changes in specified subsidiaries with changes in the scope of (2)Changes in accounting policies and changes in accounting estimates (i) Changes in accounting policies required by IFRS: None (ii) Other changes in accounting policies: None (iii) Changes in accounting estimates: None 1Q FY2022 97,896,800 Shares FY2021 97,896,800 Shares (3)Number of shares outstanding (common stock) (i) Number of shares outstanding (including treasury shares) (iii) Average number of shares outstanding (during the period) (ii) Number of shares of treasury shares 1Q FY2022 9,649,139 Shares FY2021 9,901,018 Shares 1Q FY2022 88,093,743 Shares 1Q FY2021 87,682,693 Shares * Summary of financial statements is outside the scope of audit procedures by certified public accountants and audit firm. * Comments regarding appropriate usage of earnings forecasts, and other special notes (Notes on forward-looking statements) The forward-looking statements such as earnings forecasts contained in this document are based on the information currently available to the Company and certain assumptions which are regarded as legitimate. The Company makes no warranty as to the achievability of what is described in the statements. Actual results may differ from these forecasts due to various factors. (Method of Obtaining Supplementary Briefing Materials on Financial Results) The Company plans to hold a briefing for institutional investors and analysts on May 11, 2022, in the form of a telephone conference. The materials used at the meeting will be posted on its website. ○Table of Contents of the Attached Material 1. Qualitative Information on Operating Results for the First Three Months Ended March 31, 2022 ………………………………. (1) Explanation of Operating Results ……………………………………………………………………………………………………………………. (2) Explanation of Financial Position ………………………………………………………………………………………………………………… (3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements ……………………………………… 2. Consolidated Financial Statements and Major Notes …………………………………………………………………………………………….. (1) Consolidated Statement of Financial Position …………………………………………………………………………………………………… (2) Consolidated Statements of Income …………………………………………………………………………………………………………………. (3) Consolidated Statements of Comprehensive Income …………………………………………………………………………………………. (4) Consolidated Statements of Changes in Equity …………………………………………………………………………………………………. (5) Consolidated Statements of Cash Flows …………………………………………………………………………………………………………… 2 2 3 3 4 4 5 6 7 9 (6) Notes to Consolidated Financial Statements ……………………………………………………………………………………………………… 10 (Notes on Going Concern) ……………………………………………………………………………………………………………………………… 10 (Segment Information) …………………………………………………………………………………………………………………………………… 10 – 1 – 1. Qualitative Information on Operating Results for the First Three Months Ended March 31, 2022 (1) Explanation of Operating Results In the first three months of the current fiscal year (January 1, 2022 to March 31, 2022), Japanese economy is expected to gradually normalize its economic and social activities, as semi-emergency COVID-19 measures, which had been implemented for the outbreak of COVID-19, were completely lifted on March 21, 2022. On the other hand, under uncertain situation in Russia and Ukraine, it is becoming necessary to closely monitor economic downside risks caused by changes in the financial and capital markets, rising raw material prices, and supply chain constraints. Under such social conditions, efforts for management reform using IT are accelerating, such as digital transformation (DX) of a company and development of new digital services. In the domestic mobility industry, in which many of the Group’s clients belong, efforts on DX are becoming more active not only in terms of operations, such as shift to digital operational processes and remote working styles, but also in terms of business expansion and creation. Based on our corporate philosophy of “Gratitude and Happiness,” the Group continues its activities to contribute to the business continuity and business creation of its clients. In first three months of the current fiscal year, the Company started the full-scale provision of “.c Series,” the cloud-based software service which has evolved into a total management system, and supported DX of clients’ overall businesses. Sales activities of “.c Series” has progressed as planned, and sale to new clients was especially going well. Also, sale of products for non-automotive industries was going well , and the Group conducted cost reduction by streamlining the sales activities. As a result, in the first three months of the current fiscal year (January 1, 2022 to March 31, 2022), revenue was 3,254 million yen (down 37.4% year-on-year), the operating loss was 737 million yen (operating profit of 672 million yen in the same period of the previous fiscal year), loss before tax was 646 million yen (profit before tax of 669 million yen in the same period of the previous fiscal year), and loss attributable to owners of the parent was 570 million yen (profit attributable to owners of the parent of 426 million yen in the same period of the previous fiscal year). The Group only has a single business segment of the IT services, but the breakdown of revenue by service categories is as follows. (Millions of yen) 1Q FY2021 1Q FY2022 Category (From January 1, 2021 (From January 1, 2022 YoY ratio to March 31, 2021) to March 31, 2022) Cloud service Packaged system Total 417 4,778 5,195 517 2,737 3,254 23.9 % -42.7 % -37.4 % – 2 – (2) Explanation of Financial Position (i) Analysis of financial condition (Assets) Assets at the end of the first quarter of the current fiscal year decreased by 1,623 million yen from the end of the previous fiscal year to 32,853 million yen. Current assets decreased by 2,043 million yen to 6,362 million yen, while non-current assets increased by 419 million yen to 26,491 million yen. The decrease in current assets was mainly due to a decrease of 1,882 million yen in trade and other receivables. The increase in non-current assets was mainly attributable to increases in intangible assets of 409 million yen and other financial assets of 106 million yen, despite a decrease in property, plant and equipment of 65 million yen. (Liabilities) (Equity) of 977 million yen. (ii) Analysis of cash flows Liabilities at the end of the first quarter of the current fiscal year decreased by 695 million yen from the end of the previous fiscal year to 7,667 million yen. Current liabilities decreased by 568 million yen to 6,944 million yen, while non-current liabilities decreased by 127 million yen to 723 million yen. Current liabilities decreased mainly due to decreases in trade and other payables of 1,007 million yen, income taxes payable of 398 million yen, and other current liabilities of 318 million yen, despite an increase in short-term interest-bearing debt of 1,188 million yen. The decrease in non-current liabilities was mainly attributable to decreases in deferred tax liabilities of 86 million and long-term interest-bearing debt of 38 million yen. Shareholders’ equity at the end of the first quarter of the current fiscal year decreased by 928 million yen from the end of the previous fiscal year to 25,186 million yen. The decrease in shareholders’ equity was mainly due to a decrease in retained earnings Cash and cash equivalents (hereinafter referred to as “cash”) at the end of the first quarter of the current fiscal year decreased by 164 million yen from the end of the previous fiscal year to 3,358 million yen. The situation of each cash flow and its factors in the first quarter of the current fiscal year are as follows. (Cash flow from operating activities) Cash provided by operating activities was 28 million yen (compared with 96 million used in the same period of the previous fiscal year). This was mainly due to a decrease in trade and other payables of 1,002 million yen, loss before tax of 646 million yen, income taxes paid of 394 million yen, a decrease in accrued employee bonuses of 259 million yen, finance income and finance costs of 94 million yen, and a decrease in prepaid expenses of 79 million yen, despite a decrease in trade and other receivables of 1,872 million yen and depreciation and amortization expense of 641 million yen. (Cash flow from investment activities) Cash used in investing activities was 768 million yen (a-year-on-year increase of 3.8%). This was mainly due to purchase of intangible assets of 833 million yen, despite proceeds from collection of loans receivable of 65 million yen. (Cash flow from financing activities) repayments of lease liabilities. Net cash provided by financing activities was 574 million yen (year-on-year increase of 26.8%). This was mainly due to a net increase of 1,201 million yen in short-term loans payable, despite 414 million yen in dividends payout and 210 million yen in (3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Statements As stated in the Medium-Term Management Plan (2022-2028) announced on February 9, 2022, the Group will promote market expansion and service penetration centered on “.c Series,” the cloud-based software service, with the aim of becoming the “Top SaaS company in Japan.” For the fiscal year ending December 31, 2022, the Group expects revenue to be 12.3 billion yen, operating loss to be 4.8 billion yen, loss before tax to be 4.8 billion yen, and loss attributable to owners of the parent to be 5.0 billion yen, as announced on February 9, 2022. The forecast for the first half of the fiscal year has been revised in consideration of business status and progress in the first quarter of the current fiscal year.- 3 – 2. Consolidated Financial Statements and Major Notes (1) Consolidated Statement of Financial Position (Thousands of yen) FY2021 (As of December 31, 2021) End of 1Q FY2022 (As of March 31, 2022) 3,522,045 4,293,360 208,050 85,000 296,069 8,404,523 1,273,532 11,802,504 10,548,334 93,490 1,241,649 238,413 873,530 26,071,452 34,475,975 3,567,899 354,403 2,480,024 405,660 704,310 7,512,295 337,721 208,906 143,903 115,830 43,235 849,596 8,361,891 7,147,905 7,291,792 -3,285,446 14,488,974 470,859 26,114,084 26,114,084 34,475,975 3,357,766 2,411,623 195,022 20,000 377,327 6,361,738 1,208,549 11,802,504 10,957,644 91,958 1,347,321 210,983 871,906 26,490,865 32,852,603 2,560,463 321,329 3,668,186 7,213 386,791 6,943,982 300,194 213,849 144,071 29,348 35,219 722,682 7,666,663 7,147,905 7,377,754 -3,219,015 13,511,947 367,348 25,185,940 25,185,940 32,852,603 Assets Current assets Cash and cash equivalents Operating and other receivables Inventories Other financial assets Other current assets Total current assets Non-current assets Property, plant and equipment Goodwill Intangible assets Investments accounted for using equity method Other financial assets Other non-current assets Deferred tax assets Total non-current assets Total assets Liabilities and equity Liabilities Current liabilities Operating and other payables Contract liabilities Short-term interest-bearing debts Accrued income taxes Other current liabilities Total current liabilities Non-current liabilities Long-term interest-bearing debts Obligations for retirement pay Provisional sum Deferred tax liabilities Other non-current liabilities Total non-current liabilities Total liabilities Equity Capital stock Share premium Treasury shares Retained earnings Other components of equity Total equity Total liabilities and equity Total equity attributable to owners of the parent – 4 – (2) Consolidated Statements of Income (Thousands of yen) 1Q FY2021 (From January 1, 2021 to March 31, 2021) 1Q FY2022 (From January 1, 2022 to March 31, 2022) Selling, general and administrative expenses Revenue Cost of sales Gross profit Other operating income Other operating expenses Operating profit (loss) Finance income Finance costs Equity in losses of affiliates Profit (loss) before tax Income tax Profit (loss) Profit (loss) attributable to Owners of the parent Non-controlling interests Profit (loss) Profit (loss) per share Basic earnings (losses) per share (yen) Diluted earnings (losses) per share (yen) 5,194,880 -1,529,947 3,664,934 -3,006,433 13,851 -661 671,691 18,927 -9,960 -11,458 669,200 -241,923 427,277 425,848 1,429 427,277 4.86 4.77 3,254,368 -1,194,847 2,059,521 -2,806,391 9,751 -29 -737,148 110,111 -16,001 -3,242 -646,280 75,803 -570,477 -570,477 -570,477 – -6.48 -6.48 – 5 – (3) Consolidated Statements of Comprehensive Income (Thousands of yen) 1Q FY2021 (From January 1, 2021 to March 31, 2021) 1Q FY2022 (From January 1, 2022 to March 31, 2022) Profit 427,277 -570,477 Other comprehensive income Items that will not be reclassified to profit or loss Net change in fair value of equity financial assets measured at fair value through other comprehensive income 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 for using the equity method Total items that may be reclassified to profit or loss Total other comprehensive income, net of tax Comprehensive income attributable to Owners of the parent Non-controlling interests Comprehensive income 73,876 73,876 1,432 1,273 2,705 76,581 502,429 1,429 503,858 -14,966 -14,966 -1,791 823 -968 -15,934 -586,411 – -586,411 Comprehensive income 503,858 -586,411 – 6 – (4) Consolidated Statements of Changes in Equity 1Q FY2021 (From January 1, 2021 to March 31, 2021) (Thousands of yen) Equity attributable to owners of the parent Capital stock Share premium Treasury shares Retained earnings Other components of equity Warrants Shares with restriction on transfer Balance as of January 1, 2021 7,147,905 7,215,824 -3,403,618 13,265,826 724,241 -14,000 Profit Other comprehensive income Total comprehensive income Disposal of treasury shares Dividends 66,716 67,111 -133,826 425,848 425,848 – – -578,052 – – – – – – – – – – – 14,000 14,000 Share-based payment transactions 7,794 45,165 Total transactions with owners 66,716 67,111 -570,258 -88,660 Balance as of March 31, 2021 7,147,905 7,282,540 -3,336,507 13,121,415 635,581 (Thousands of yen) Equity attributable to owners of the parent Other components of equity Total Total Non-controlling interests Total equity Balance as of January 1, 2021 -47,026 -289,136 374,078 24,600,015 2,451 24,602,466 Profit Other comprehensive income Total comprehensive income Disposal of treasury shares Dividends Share-based payment transactions Total transactions with owners – 425,848 1,429 427,277 2,705 2,705 73,876 73,876 76,581 76,581 76,581 76,581 502,429 1,429 503,858 -133,826 2 – -578,052 59,165 66,959 -74,660 -511,091 2 -578,052 66,959 -511,091 Balance as of March 31, 2021 -44,321 -215,260 375,999 24,591,353 3,880 24,595,233 – – – – – – – – – Exchange differences on translating foreign operations Net change in fair value of financial assets of equity nature measured at fair value through other comprehensive income – – – – – – – – – – – – – – – – – – – – – – – 7 – 1Q FY2022 (From January 1, 2022 to March 31, 2022) (Thousands of yen) Equity attributable to owners of the parent Capital stock Share premium Treasury shares Retained earnings Other components of equity Warrants Shares with restriction on transfer Balance as of January 1, 2022 7,147,905 7,291,792 -3,285,446 14,488,974 772,216 -14,000 Loss Other comprehensive income Total comprehensive income Acquisition of treasury shares Disposal of treasury shares Dividends 85,962 66,445 – 152,407 -570,477 -570,477 – – – -413,579 -14 – – – – – – – – – – – – – – – – – 14,000 14,000 Share-based payment transactions 7,030 50,831 Total transactions with owners 85,962 66,431 -406,550 -101,576 Balance as of March 31, 2022 7,147,905 7,377,754 -3,219,015 13,511,947 670,639 (Thousands of yen) Equity attributable to owners of the parent Other components of equity Exchange differences on translating foreign operations Net change in fair value of financial assets of equity nature measured at fair value through other comprehensive income Total equity Total Total Balance as of January 1, 2022 -48,370 -238,987 470,859 26,114,084 26,114,084 Loss – -570,477 -570,477 Other comprehensive income -14,966 -15,934 -15,934 -15,934 Total comprehensive income -14,966 -15,934 -586,411 -586,411 -968 -968 Purchase of treasury stock Disposal of treasury shares Dividends Share-based payment transactions Total transactions with owners -152,407 – – -14 – -14 – -413,579 -413,579 64,831 71,860 71,860 -87,576 -341,733 -341,733 Balance as of March 31, 2022 -49,338 -253,953 367,348 25,185,940 25,185,940 – – – – – – – – – – – – – – – – – – – – – – – – – – – 8 – (5) Consolidated Statements of Cash Flows Cash flow from operating activities Profit (loss) before tax Depreciation and amortization expense Share-based payment expense Finance costs (income) Equity in loss (earnings) of affiliates Decrease (increase) in trade and other receivables Decrease (increase) in inventories Increase (decrease) in trade and other payables Decrease (increase) in prepaid expenses Decrease (increase) in long-term prepaid expenses Increase (decrease) in employees’ bonuses payable Increase (decrease) in contract liabilities Increase (decrease) in consumption taxes payable Others Subtotal Interest received Interest expenses paid Income taxes paid Cash flow from operating activities Cash flow from investing activities Acquisition of property, plant and equipment Acquisition of intangible assets Loan advances Collection of loans receivable Payments for lease and guarantee deposits Proceeds from collection of lease and guarantee deposits Others Cash flow from investing activities Cash flow from financing activities Net increase (decrease) in short-term loans payable Repayments of lease obligations Cash dividends paid Expenses related to commitment lines Cash flow from 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 end of period (Thousands of yen) 1Q FY2021 (From January 1, 2021 to March 31, 2021) 1Q FY2022 (From January 1, 2022 to March 31, 2022) 669,200 566,708 59,165 -8,967 11,458 16,605 197,166 -619,864 -25,441 19,816 -281,453 -61,787 -56,311 -28,378 457,917 651 -2,088 -552,633 -96,152 -12,537 -738,941 -300 316 -619 4,056 8,256 -739,770 1,302,000 -222,024 -578,052 -49,528 452,395 1,359 -382,167 3,232,409 2,850,241 -646,280 640,713 75,700 -94,110 3,242 1,872,235 13,031 -1,002,348 -79,139 17,405 -258,571 -33,073 -31,157 -53,437 424,211 11 -2,901 -393,813 27,507 -1,586 -832,516 65,251 -256 1,398 – – -767,708 1,201,000 -210,421 -413,579 -3,205 573,795 2,127 -164,279 3,522,045 3,357,766 – 9 – (6) Notes to Consolidated Financial Statements (Notes on Going Concern) Not applicable. (Segment Information) This information is omitted because the Group only has a single business segment of the IT services. – 10 –