May 12, 2022
For Immediate Release:
MTI Ltd.
Representative: Toshihiro Maeta,President and Chief Executive Officer
Listing: TSE Prime [9438]
Contact: Hiroshi Matsumoto,Senior Managing Director
Tel: +81-3-5333-6323

Notice Concerning Posting of Extraordinary Losses, Differences between Forecasts and Actual
Results for the First Half of the Fiscal Year, and Revisions to Full-Year Results Forecast
MTI Ltd. (hereinafter the “Company”) announces that the Company will post extraordinary losses as stated below
for the second quarter of the fiscal year ending September 30, 2022 (from January 1, 2022 to March 31, 2022).
In addition, the Company announces that the Company will revise the forecasts for the first half of the fiscal
year ending September 30, 2022 the revise the earnings forecast for the fiscal year ending September 30, 2022
announced on November 9, 2021. Detail are as follows.
1. Posting of extraordinary losses
In the non-consolidated results, the Company will post a loss on valuation of shares of subsidiaries and associatesof 2,935 million yen for the shares of MTI Healthcare Holdings Inc., a consolidated subsidiary of the Company,
taking into account its business environment and future outlook, among other factors. This account will beeliminated in consolidated accounting.
2. Revision of the consolidated results forecast(1) Differences between forecasts and actual results for the first half of the fiscal year ending
September 30, 2022
(October 1, 2021 – March 31, 2022）

Previous announced
forecast (A)Current announced
forecast (B)Differences（B-A）
Differences（%）（Reference）
Actual results in the previous
fiscal year
(For the first half of thefiscal year ended September30, 2021)

ProfitNetattributable toincome
owners of parent per share

Net sales

OperatingincomeOrdinaryincome

Millions of yen

Millions of yen

Millions of yen

Millions of yen

300
~ 500

5.48
~ 9.13*

12,975

599

292

123

2.25(274)~ +225(2.1)~ +1.8(500)~ (300)(45.5)~ (33.4)(607)~ (407)(67.5)~ (58.2)(376)~ (176)(75.3)~ (58.9)

13,0461,232

840(1,416)

12,750~ 13,250900~ 1,100

700
~ 900

Yen

*The forecast for net income per share released on the previous occasion is a figure taken from the Summary of Consolidated
Financial Results for the First Half of the Fiscal Year Ending September 30, 2022 (released on May 12, 2022) in which figures
recalculated on the basis of the number of outstanding shares (excluding treasury shares) as of March 31, 2022 are stated.

1[Reasons for the differences]
Net sales was in line with initial forecast.
Operating income fell below the initial forecast due to the factors below.
In the other business, the Group is actively working to develop the school digital transformation (DX)business operated by Motivation Works Inc., a subsidiary of the Company. Due to a large number of businessinquiries about “BLEND”, the cloud-based school affairs support system provided by Motivation Works Inc.,
the Group made upfront investments to increase the number of personnel to strengthen the business structure,use subcontractors to deal with increasing implementations of the system, and develop the system to improve
its scalability. Meanwhile, there were many business inquiries also about the DX support business for large
companies, and the Group aimed to offset the upfront investments in the school DX business by expanding
projects in the DX support business, while posting operating income within the initial forecast range.
However, operating income fell short of the initial forecast chiefly due to a rise in the cost of sales becauseof an increase in low-profit projects.
Ordinary income was also below the initial forecast. The difference from the forecast in ordinary income
was larger than that in operating income due to a larger share of loss of entities accounted for using equity
method than initially forecast in addition to the abovementioned factor.
Profit attributable to owners of parent was also less than initially forecast. The difference from the forecast
was smaller than that in ordinary income chiefly due to a smaller amount of extraordinary losses than initiallyforecast.
(2) Revision of the consolidated financial forecast for the full fiscal year ending September 30, 2022
(October 1, 2021 – September 30, 2022)
ProfitNet
Operating
Ordinary
Net sales
attributable toincome
incomeincomeowners of parent per share
Yen

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Current announced
forecast (B)25,500~ 26,500
25,500~ 26,500

Differences（B-A）-Differences（%）

-

1,800
~ 2,200
1,000~ 1,400(400)~ (1,200)(36.4)~ (44.4)

1,400~ 1,800
500~ 900(500)~ (1,300)(50.0)~ (64.3)600~ 1,000
100
~ 500
(100)
~ (900)(50.5)~ (83.3)

10.92~ 18.20*
1.82~ 9.12

1,929

1,370

(1,164)(21.8)

Previous announced
forecast (A)(Reference)
For the fiscal year ended
September 30, 2021

25,743*The forecast for net income per share released on the previous occasion is a figure taken from the Summary of Consolidated
Financial Results for the First Half of the Fiscal Year Ending September 30, 2022 (released on May 12, 2022) in which figures
recalculated on the basis of the number of outstanding shares (excluding treasury shares) as of March 31, 2022 are stated.

[Reasons for the revisions]
The Company has left unchanged the full-year consolidated net sales forecast for the fiscal year ending
September 30, 2022, while it has revised downward the operating income, ordinary income and profit
attributable to owners of parent forecasts, taking into consideration the differences between the actual
results in the first half and the latest forecasts, the continuing upfront investments in the school DX
business operated by Motivation Works Inc., a subsidiary of the Company, and low-profit projects inthe DX support business for large companies that will continue in the second half, although theCompany is improving the project management systems.

2In addition, the Company believes that the spread of the COVID-19 infections has a minor impact
on forecasts for the full-year consolidated financial results at the present time. If any event that is
expected to have a serious impact is identified going forward, the Company will make disclosure
promptly.
＜Points to consider concerning forecasts
Matters stated in this material concerning results forecasts are based on assessments, assumptions andconvictions derived from information available to the Company at the time when this material is published.
They may differ significantly from actual results due to a variety of factors, including future economicconditions in Japan and overseas, changes in conditions for business operations in Japan and overseas, oruncertain factors and potential risks inherent in forecasts. Those risks and uncertain factors include
unpredictable effects on results that may arise from future events.
Note: This document has been translated from a part of the Japanese original for reference purposes only. In
the event of any discrepancy between this translated document and the Japanese original, the original shallprevail. The Company assumes no responsibility for this translation or for direct, indirect or any other formsof damages arising from the translation.

Contact information for inquiries
Investor Relations OfficeE-mail: ir@mti.co.jp
URL： https://ir.mti.co.jp/eng/

3