June 27, 2018
For Immediate Release:
MTI Ltd.
Toshihiro Maeta,President and Chief Executive Officer
Listing: Tokyo Stock Exchange(First Section) [9438]
Contact: Hiroshi Matsumoto, Managing Director
Tel: +81-3-5333-6323

Notice of Conversion of Crowd Cast, Ltd. into an Equity-Method Associated Company
MTI Ltd. (hereinafter the “Company”) announces that Crowd Cast, Ltd. (hereinafter “Crowd Cast”) will
become an equity-method associated company of the Company. In addition to its holding of Class B
preferred shares of Crowd Cast (shareholding ratio: 15.44%) which were acquired in November 2017, theCompany reached an agreement with Crowd Cast to appoint one director of Crowd Cast.

1. Reason for conversion
Crowd Cast has been developing and offering Staple, an expense management application, while theCompany has been developing and offering FEEDER, an application that supports expense settlement, incooperation with Automagi Inc., its subsidiary. To facilitate the introduction of these applications to smalland medium businesses, the Company acquired Class B preferred shares of Crowd Cast in November 2017by subscribing to a third-party allotment of shares conducted by Crowd Cast to increase capital. By
dispatching one Director to Crowd Cast, the Company intends to reinforce its relations with Crowd Cast.

2. Outline of Crowd Cast (as of June 27, 2018)（1）

NameCrowd Cast, Ltd.

（2）

Address

1-6-1 Otemachi, Chiyoda-ku, Tokyo（3）

Name and title ofTakashi Hoshikawa, CEOrepresentative（4）

Nature of business

Planning, development, provision, etc. of mobile and cloud services
specialized in B2B, FinTech and front-end.

（5）

Capital stock

93,100 thousands of yen（6）FoundedJanuary 21, 2011

（7）

Major shareholders andTakashi Hoshikawa (CEO） 62.55%

shareholding ratios

MTI Ltd. 15.44%

Relationship between

Yayoi Co., Ltd. 9.65%
CapitalThe Company holds 8,000 shares of Class B preferred

the listed company andrelationship（8）

the relevant company

stock of the relevant company (shareholding ratio:15.44%).

1

HumanThere is no human relationship between the two

relationshipcompanies that is required to be disclosed.

Business

There are business transactions between the Company
and the relevant company.

relationship

3. Future outlook
This case will have a very minimal impact materially on the Company’s consolidated business results for the
fiscal year ending September 30, 2018
(Reference)
Consolidated financial results forecast for the current fiscal year (Announced on January 30, 2018) andconsolidated results for the previous fiscal year
(Unit: millions of yen)

Forecasts for consolidated
financial results（September30, 2018）
Consolidated results for theprevious fiscal year（September 30, 2017）

Profit attributable

Consolidated

Consolidated

Consolidated

Net sales

Operating income

Ordinary income

30,000

2,800

2,800

2,000

30,933

4,053

3,972

1,434

to owners ofparent

Disclaimer Regarding Forecast and ProjectionsThis report contains forward-looking statements on business performance based on the judgments, assumptions
and beliefs of management using the information available at the time. Actual results may differ materially due tochanges in domestic or overseas economic conditions, changes in internal or external business environments, oraspects of uncertainty contained in the forecasts, latent risks or a variety of other factors. In addition, factors ofrisk and uncertainty include unpredictable elements that could 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
Futaki, Investor Relations OfficeTel: +81-3-5333-6323
Fax: +81-3-3320-0189
E-mail: ir@mti.co.jp
URL： https://www.mti.co.jp/eng

2