Interim report
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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. Consolidated Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2025 [IFRS] (Consolidated) November 12, 2025 Broadleaf Co., Ltd Stock listing: Prime Market of Tokyo Stock Exchange Representative: Kenji Oyama, Representative Director and President Scheduled date of commencement of dividend payout ‐ Earnings Supplementary Explanatory Documents Yes Earnings Results Briefing: Yes (For institutional investors and analysts) (Amounts of less than JPY one million are rounded) 1. Consolidated Financial Results for the 3Q FY2025 (From January 1, 2025 to September 30, 2025) (1) Consolidated Operating Results (Cumulative) (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 % 3Q FY2025 15,231 17.5 1,492 418.3 1,301 344.0 855 459.7 872 442.5 888 297.1 3Q FY2024 12,958 15.2 288 - 293 - 153 - 161 - 224 - Basic earnings per share Diluted earnings per share Yen Yen 3Q FY2025 9.71 9.49 3Q FY2024 1.81 1.76 (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 Millions of yen Millions of yen % 3Q FY2025 41,432 23,878 23,848 57.6 FY2024 39,895 23,143 23,142 58.0 2. Dividends Dividend per share End of 1Q Interim End of 3Q Year-end Total Yen Yen Yen Yen Yen FY2024 - 0.00 - 2.00 2.00 FY2025 - 2.50 - FY2025 (forecast) 2.50 5.00 (NOTE)Revisions to the latest announced dividend forecasts: None 3. Forecast of Consolidated Financial Results for FY2025 (From January 1, 2025 to December 31, 2025) (Percentage below represents increase (decrease) from the same period of previous year) Revenue Operating profit Profit before tax Profit attributable to owners of the parent Basic earnings per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen FY2025 20,400 13.0 1,700 152.2 1,450 166.1 1,000 191.3 11.13 (NOTE)Revisions to the most recently announced earnings forecasts: Yes
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- 2 - ※ Notes (1) Changes in significant subsidiaries during the current period (changes in specified subsidiaries with changes in the scope of consolidation): None (2) Changes in accounting policies and changes in accounting estimates ① Changes in accounting policies required by IFRS: None ② ① Changes in accounting policies other than the above: None ③ Changes in accounting estimates: None (3) Number of shares outstanding (common stock) ① Number of shares outstanding (including treasury shares) 3Q FY2025 97,896,800 Shares FY2024 97,896,800 Shares ② Number of shares of treasury shares 3Q FY2025 7,804,741 Shares FY2024 8,680,791 Shares ③ Average number of shares outstanding (during the period) 3Q FY2025 89,852,854 Shares 3Q FY2024 89,087,481 Shares ※ The financial results for the 3Q are not subject to review by a certified public accountant or an auditing firm. ※ Comments regarding appropriate usage of earnings forecasts, and other special notes (Notes on forward-looking statements) The forward-looking statements such as earnings forecasts contained in this document are based on the information currently available to Broadleaf Co., Ltd. Group (hereinafter “the Group”) and certain assumptions which are regarded as legitimate. The Group 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. (Availability of earnings supplementary explanatory documents and information on earnings results briefings) The Group plans to hold a live webcast presentation for institutional investors and analysts on Wednesday, November 12, 2025. The materials used at the meeting will be posted on its website.
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- 3 - ○Table of Contents of the Attached Material 1. Overview of Operating Results, etc............................................................................................................................................... 4 (1) Overview of Operating Results................................................................................................................................................ 4 (2) Overview of Financial Position................................................................................................................................................ 5 (3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information.................................................. 5 2. Consolidated Financial Statements and Major Notes.................................................................................................................... 7 (1) Condensed Statements of Financial Position........................................................................................................................... 7 (2) Condensed Statements of Income and Consolidated Statements of Comprehensive Income................................................. 8 (3) Condensed Statements of Changes in Equity........................................................................................................................... 10 (4) Condensed Statements of Cash Flows..................................................................................................................................... 12 (5) Notes to the Consolidated Financial Statements...................................................................................................................... 14 (Notes on the going concern) .............................................................................................................................................. 14 (Segment information)......................................................................................................................................................... 14
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- 4 - 1. Overview of operating results, etc. (1) Overview of operating results for the Third Quarter of the current fiscal year During the first nine months of the current fiscal year (January 1, 2025 to September 30, 2025), the Japanese economy continued its moderate recovery, supported by improvements in employment and income conditions and the effects of various policy measures. However, the impact of U.S. trade policy and a continued decline in consumer sentiment due to pe rsistent price increases pose downside risks to the economy, and the outlook remains uncertain. In the domestic information services industry to which our Group belongs, corporate IT investment remains active, This includ ed the development of IT infrastructure to realize sustainability -oriented management, such as through cloud shift; the introductio n of generative AI aimed at strengthening contact with end-users; and the creation of new services through the utilization of digital data. In this environment, our Group is promoting two growth strategies set forth in the Medium -Term Management Plan (2022–2028): “Cloud Penetration” and “Service Expansion,” with the aim of supporting customers in realizing innovation and driving business trans formation. Specifically, we are systematically transitioning existing customers using packaged software to our cloud-based software “.c Series,” while also focusing on acquiring new customers. In addition to expanding our cloud software offerings, we are a lso advancing research and development of new platform-based services that leverage the Group’s proprietary digital data and AI technologies. As a result of these efforts, the number of customers using cloud software increased, leading to a 45. 2% increase in cloud services sales compared to the same period last year. Meanwhile, as the transition from package software to cloud software progressed steadily, package system sales decreased by 19.0% compared to the same period last year. Additionally, due to strong demand for PC replacements driven by the need to support new operating systems and enhance security, other sales increased by 39.9% compared to the same period last year. While the transition to cloud software by customers changes the composition ratio of cloud services sales and package system sales, it is contributing to overall sales growth. This factor for revenue growth is expected to continue until the planned transition to cloud software is completed in 2028. On the cost side, depreciation expenses increased due to the expansion of applicable industries and the addition of new functions for our cloud software, while IT infrastructure enhancement costs also rose as we worked to further improve service quality. M eanwhile, we continued to utilize generative AI to improve the efficiency of sales, development, and administrative operations, and actively promoted cost optimization. As a result, revenue for the first nine months of the current fiscal year under review was 15,231 million yen, (an increase of 17.5% year on year). Operating income was 1,492 million yen (an increase of 418.3% year on year ). Due to an increase in financial expenses, profit before income taxes was 1,301 million yen (an increase of 344.0% year on year), and profit attributable to owners of the parent was 872 million yen (an increase of 442.5% year on year). Our Group is a single segment of IT Services Business, but the breakdown of revenues by service category is as follows. (Millions of yen) Classification Previous third quarter consolidated cumulative accounting period (From January 1, 2024 To September 30, 2024) Current third quarter consolidated cumulative accounting period (From January 1, 2025 To September 30, 2025) YoY ratio Cloud services 5,790 8,408 45.2％ Packaged system 5,444 4,412 -19.0％ Others 1,724 2,411 39.9％ Total 12,958 15,231 17.5% Cloud services This category consists of usage fees for subscription-type software, including “.c Series” of cloud software, and fees for platforms for ordering automotive aftermarket parts. Packaged system This category consists of sales proceeds (both lease sales and bulk sales) for packaged software for mobile phone shops, travel agencies, bus operators, machinery and tool trading companies, and manufacturers, as well as various service fees required for the use of packaged software. Others This category comprises revenue from the sale of hardware such as PCs and supplies.
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- 5 - (2) Overview of Financial Position for the Third Quarter of the current fiscal year (i) Analysis of financial condition (Assets) Assets at the end of the third quarter of the current fiscal year increased by 1,538 million yen from the end of the previous consolidated fiscal year to 41,432 million yen. Current assets increased by 222 million yen to 8,433 million yen, and non-current assets increased by 1,316 million yen to 32,999 million yen. The main factors for the increase in current assets were a decrease of 276 million yen in cash and cash equivalents, but an increase of 387 million yen in trade and other receivables and an incre ase of 79 million yen in inventories. The main factors for the increase in non-current assets were a decrease of 117 million yen in tangible fixed assets, a decrease of 95 million yen in investments accounted for using the equity method, and a decrease of 79 million yen in other financial assets, but an increase of 1,615 million yen in intangible assets. (Liabilities) Liabilities at the end of the third quarter of the current fiscal year increased by 803 million yen from the end of the previ ous consolidated fiscal year to 17,554 million yen. Current liabilities increased by 1,736 million yen to 15,417 million yen, while non-current liabilities decreased by 933 million yen to 2,138 million yen. The main factors for the increase in current liabilities were a decrease of 385 million yen in other current liabilities, but an increase of 1,187 million yen in contract liabilities and an increase of 880 million yen in short-term interest-bearing liabilities. The main factor for the decrease in non-current liabilities was a decrease of 942 million yen in long-term interest-bearing liabilities. (Equity) Equity at the end of the third quarter of the current fiscal year increased by 735 million yen from the end of the previous c onsolidated fiscal year to 23,878 million yen. The main factors for the increase in equity were an increase of 505 million yen in r etained earnings and a decrease of 239 million yen in treasury shares. (ii) Analysis of cash flows Cash and cash equivalents (hereinafter referred to as ""cash"") at the end of the third quarter of the current fiscal year decreased by 276 million yen from the end of the previous consolidated fiscal year to 4,030 million yen. The status of each cash flow and its factors in the first nine months of the current fiscal year are as follows. (Cash flow from operating activities) Net cash provided by operating activities was 4,045 million yen (up 14.2% year -on-year). This was mainly due to depreciation and amortization expenses of 2,433 million yen, profit before tax of 1,301 million yen, and an increase in contract liabilities o f 1,187 million yen, despite an increase in operating and other receivables of 364 million yen, income taxes paid of 326 million yen, and a decrea se in accrued employee bonuses of 279 million yen. (Cash flow from investment activities) Cash used in investing activities was 3,337 million yen (up 4.3% year-on-year). This was mainly due to expenditures of 3,359 million yen for the acquisition of intangible assets. (Cash flow from financing activities) Cash used in financing activities was 1,003 million yen (up 110.5% year -on-year). This was mainly due to a net increase in short -term borrowings of 1,287 million yen, offset by expenditures of 1,739 million yen for the repayment of long-term borrowings and 639 million yen for the repayment of lease liabilities. (3) Explanation of Consolidated Earnings Forecasts and Other Forward-Looking Information. As the Company’s key initiative to promote customers’ migration to the cloud continues to progress steadily, and demand for h ardware replacements—particularly PCs—has exceeded expectations, it has revised its full-year revenue forecast for the fiscal year ending December 31, 2025, from the figures announced in the “Consolidated Financial Results for the Second Quarter (Interim) of the Fiscal Year Ending December 31, 2025 [IFRS] (Consolidated)” published on August 6, 2025. On the cost side, while procurement and purchasing costs have generally increased due to inflationary pressures, the Company has been actively promoting cost optimization by leveraging generative AI to enhance the efficiency of sales activities, as well as development and administrative operations. As a result, the Company has revised its forecast for the fiscal year ending December 31, 2025, to revenue of 20,400 million yen and operating profit of 1,700 million yen. Forecasts for profit before tax and profit attributable to owners of the parent remain unchanged, considering financial income and expenses recorded through the third quarter. For more details, please refer to the press release titled “Notice of Revisions to Consolidated Earnings Forecasts,” dated November 12, 2025.
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- 6 - The year-end dividend forecast also remains unchanged at 2.50 yen per share, as announced in the “Notice of Revision of Dividend Forecast (dividend increase) for the Fiscal Year Ending December 31, 2025” released on March 14, 2025.
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- 7 - 2. Consolidated Financial Statements and Major Notes (1)Consolidated Statements of Financial Position (Thousands of yen) End of previous consolidated fiscal year (As of December 31, 2024) End of current consolidated accounting period (As of September 30, 2025) Assets Current assets Cash and cash equivalents 4,305,936 4,030,080 Trade and other receivables 3,364,516 3,751,874 Inventories 185,926 264,550 Other financial assets - 3,000 Other current assets 354,393 383,593 Total current assets 8,210,771 8,433,096 Non-current assets Property, plant and equipment 1,168,350 1,050,891 Goodwill 11,126,040 11,167,691 Intangible assets 16,526,210 18,140,958 Investments accounted for using equity method 95,076 0 Other financial assets 987,931 908,630 Other non-current assets 195,198 136,302 Deferred tax assets 1,584,934 1,594,785 Total non-current assets 31,683,739 32,999,258 Total assets 39,894,510 41,432,354 Liabilities and equity Liabilities Current liabilities Trade and other payables 2,796,551 2,698,550 Contract liabilities 6,286,757 7,473,793 Short-term interest-bearing debts 3,479,686 4,359,860 Income taxes payable 220,779 372,323 Other current liabilities 896,834 512,179 Total current liabilities 13,680,607 15,416,705 Non-current liabilities Long-term interest-bearing debts 2,655,163 1,712,983 Retirement benefit obligations 241,176 252,484 Provisions 137,255 137,067 Other non-current liabilities 36,916 35,221 Total non-current liabilities 3,070,510 2,137,755 Total liabilities 16,751,117 17,554,461 Equity Capital stock 7,147,905 7,147,905 Share premium 7,558,945 7,615,311 Treasury shares -2,926,532 -2,687,788 Retained earnings 10,407,827 10,912,850 Other components of equity 953,378 860,099 Total equity attributable to owners of the parent 23,141,522 23,848,377 Non-controlling interests 1,870 29,516 Total equity 23,143,393 23,877,893 Total liabilities and equity 39,894,510 41,432,354
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- 8 - (2) Condensed Statements of Income and Consolidated Statements of Comprehensive Income (Condensed Quarterly Consolidated Statements of Income) (Thousands of yen) Previous third quarter consolidated cumulative accounting period (From January 1, 2024 To September 30, 2024) Current third quarter consolidated cumulative accounting period (From January 1, 2025 To September 30, 2025) Revenue 12,957,722 15,230,725 Cost of sales -4,548,898 -5,373,891 Gross profit 8,408,824 9,856,834 Selling, general and administrative expenses -8,169,368 -8,371,970 Other operating income 53,022 28,812 Other operating expenses -4,668 -22,047 Operating profit 287,810 1,491,630 Finance income 32,395 11,492 Finance costs -60,536 -107,189 Share of profit (loss) of entities accounted for using equity method (- indicates loss) 33,300 -95,076 Quarterly profit before tax 292,969 1,300,857 Income tax -140,129 -445,425 Quarterly profit 152,840 855,431 Quarterly profit attributable to Owners of the parent 160,822 872,495 Non-controlling interests -7,982 -17,064 Quarterly profit 152,840 855,431 Quarterly profit per share Basic quarterly profit per share (yen) 1.81 9.71 Diluted quarterly profit per share (yen) 1.76 9.49
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- 9 - (Condensed Quarterly Consolidated Statements of Comprehensive Income) (Thousands of yen) Previous third quarter consolidated cumulative accounting period (From January 1, 2024 To September 30, 2024) Current third quarter consolidated cumulative accounting period (From January 1, 2025 To September 30, 2025) Quarterly profit 152,840 855,431 Other comprehensive income Items that will not be reclassified to profit or loss Net change in fair value of financial assets of equity nature measured at fair value through other comprehensive income 78,758 14,771 Total items that will not be reclassified to profit or loss 78,758 14,771 Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations -8,058 17,517 Total items that may be reclassified to profit or loss -8,058 17,517 Total other comprehensive income, net of tax 70,700 32,288 Comprehensive income 223,540 887,720 Comprehensive income attributable to Owners of the parent 231,522 904,784 Non-controlling interests -7,982 -17,064 Comprehensive income 223,540 887,720
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- 10 - (3) Condensed Statements of Changes in Equity Previous third quarter consolidated cumulative accounting period (From January 1, 2024 to September 30, 2024) (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, 2024 7,147,905 7,449,297 -3,045,268 10,057,477 876,989 -14,000 Quarterly profit - - - 160,822 - - Other comprehensive income - - - - - - Total comprehensive income - - - 160,822 - - Disposal of treasury shares - 106,890 118,129 - -173,420 -55,996 Dividends - - - -88,802 - - Share-based payment transactions - - - 1,327 215,530 41,998 Transfer from other components of equity to retained earnings - - - 90,560 - - Total transactions with owners - 106,890 118,129 3,086 42,110 -13,998 Balance as of September 30, 2024 7,147,905 7,556,187 -2,927,139 10,221,385 919,099 - 27,998 (Thousands of yen) Equity attributable to owners of the parent Non- controlling interests Total equity Other components of equity Total Exchange differences on translating foreign operations Net change in fair value of financial assets of equity nature measured at fair value through other comprehensiv e income Total Balance as of January 1, 2024 -41,960 43,051 864,081 22,473,492 13,093 22,486,585 Quarterly profit - - - 160,822 -7,982 152,840 Other comprehensive income - 8,058 78,758 70,700 70,700 - 70,700 Total comprehensive income -8,058 78,758 70,700 231,522 -7,982 223,540 Disposal of treasury shares - - -229,416 -4,398 - -4,398 Dividends - - - -88,802 - -88,802 Share-based payment transactions - - 257,528 258,856 - 258,856 Transfer from other components of equity to retained earnings - - 90,560 -90,560 - - - Total transactions with owners - - 90,560 -62,448 165,656 - 165,656 Balance as of September 30, 2024 -50,017 31,249 872,333 22,870,671 5,110 22,875,781
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- 11 - Current third quarter consolidated cumulative accounting period (From January 1, 2025 to September 30, 2025) (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, 2025 7,147,905 7,558,945 -2,926,532 10,407,827 957,589 -13,294 Quarterly profit - - - 872,495 - - Other comprehensive income - - - - - - Total comprehensive income - - - 872,495 - - Acquisition of treasury shares - - -28 - - - Disposal of treasury shares - 101,075 238,773 - -289,482 -56,000 Dividends - - - - 403,662 - - Share-based payment transactions - - - 33,718 181,093 41,293 Changes in ownership interests in subsidiaries that do not result in a loss of control - - 44,709 - - - - Transfer from other components of equity to retained earnings - - - 2,471 - - Total transactions with owners - 56,366 238,745 -367,472 -108,389 -14,706 Balance as of September 30, 2025 7,147,905 7,615,311 -2,687,788 10,912,850 849,200 -28,000 (Thousands of yen) Equity attributable to owners of the parent Non- controlling interests Total equity Other components of equity Total Exchange differences on translating foreign operations Net change in fair value of financial assets of equity nature measured at fair value through other comprehensiv e income Total Balance as of January 1, 2025 -47,732 56,814 953,378 23,141,522 1,870 23,143,393 Quarterly profit - - - 872,495 -17,064 855,431 Other comprehensive income 17,517 14,771 32,288 32,288 - 32,288 Total comprehensive income 17,517 14,771 32,288 904,784 -17,064 887,720 Acquisition of treasury shares - - - -28 - -28 Disposal of treasury shares - - -345,482 -5,635 - -5,635 Dividends - - - -403,662 - -403,662 Share-based payment transactions - - 222,387 256,105 - 256,105 Changes in ownership interests in subsidiaries that do not result in a loss of control - - - -44,709 44,709 - Transfer from other components of equity to retained earnings - -2,471 -2,471 - - - Total transactions with owners - -2,471 -125,567 -197,929 44,709 -153,219 Balance as of September 30, 2025 -30,215 69,114 860,099 23,848,377 29,516 23,877,893
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- 12 - (4) Condensed Statements of Cash Flows (Thousands of yen) Previous third quarter consolidated cumulative accounting period (From January 1, 2024 To September 30, 2024) Current third quarter consolidated cumulative accounting period (From January 1, 2025 To September 30, 2025) Cash flow from operating activities Quarterly profit before tax 292,969 1,300,857 Depreciation and amortization expense 2,136,859 2,432,568 Impairment loss 38,926 - Share-based payment expense 217,443 229,693 Finance income and finance costs (-indicates income) 28,141 95,697 Share of loss (profit) of entities accounted for using equity method (- indicates profit) -33,300 95,076 Decrease (- indicates increase) in trade and other receivables -403,382 -364,240 Decrease (- indicates increase) in inventories -77,323 -96,377 Increase (- indicates decrease) in trade and other payables -245,996 -168,547 Decrease (- indicates increase) in prepaid expenses -23,043 -10,249 Decrease (- indicates increase) in long-term prepaid expenses -74,300 55,386 Increase (- indicates decrease) in employees' bonuses payable -235,445 -278,718 Increase (- indicates decrease) in contract liabilities 1,768,644 1,187,036 Increase (- indicates decrease) in accrued consumption taxes 157,240 -94,232 Others 14,586 11,408 Subtotal 3,562,020 4,395,358 Interest received 6,753 4,450 Dividend received 2,614 3,098 Interest paid -23,410 -32,346 Income taxes paid or refunded (- indicates payment) -5,688 -325,985 Cash flow from operating activities 3,542,288 4,044,575 Cash flow from investing activities Purchase of property, plant and equipment -4,728 -13,326 Proceeds from sales of property, plant and equipment 1,639 641 Payments for purchase of intangible assets -3,440,071 -3,358,947 Payments for acquisition of investments -10,608 - Proceeds from sales and redemption of investments 331,441 11,600 Proceeds from acquisition of newly consolidated subsidiaries - 12,210 Loan advances - 230 -3,000 Collection of loans receivable 7,631 6,899 Payments of leasehold and guarantee deposits -3,454 -3,404 Proceeds from refund of leasehold and guarantee deposits 6,889 2,578 Payments for acquisition of investments accounted for using the equity method -100,650 - Proceeds from distributions from investment partnerships 12,080 7,920 Others - -261 Cash flow from investing activities -3,200,062 -3,337,090
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- 13 - (Thousands of yen) Previous third quarter consolidated cumulative accounting period (From January 1, 2024 To September 30, 2024) Current third quarter consolidated cumulative accounting period (From January 1, 2025 To September 30, 2025) Cash flow from financing activities Net increase (- indicates decrease) in short-term borrowings -2,900,000 1,287,000 Proceeds from long-term borrowings 4,700,000 496,500 Repayments of long-term borrowings -1,463,410 -1,739,422 Repayments of lease liabilities -688,361 -639,397 Dividends paid -88,802 -403,662 Purchase of treasury shares - -28 Expenses related to commitment lines -35,829 -3,645 Cash flow from financing activities -476,402 -1,002,654 Effect of exchange rate changes on cash and cash equivalents -3,740 19,314 Net increase (- indicates decrease) in cash and cash equivalents -137,916 -275,856 Cash and cash equivalents at beginning of period 3,920,033 4,305,936 Cash and cash equivalents at end of interim period 3,782,117 4,030,080
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- 14 - (5) Notes to the Consolidated Financial Statements (Notes on the going concern) Not applicable. (Segment information) This information is omitted because the Group only has a single business segment of the IT services.