Financial Results Briefing
for Q2 FY2023
May 12, 2023

This 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 to changes in domestic oroverseas economic conditions or changes in internal or external business environments or aspects of uncertainty contained in
the forecasts, latent risks or various other factors. In addition, risk and uncertainty factors include unpredictable elements that
could arise from future events.

Copyrights (c) 2023 MTI Ltd. All Right Reserved

Contents
P.01 Financial Results
Overview for Q2 FY2023
02 Financial highlight

P.20 Approach in Q3 and beyond
21 Basic policies and priority issues

03 Consolidated P/L

for FY2023

04 Consolidated SG&A

22 Cloud drug record service

06

24 Maternal and child health handbook app

Difference between earning
forecast and the actual for Q2+ Childcare DX services

07 Revision of earnings forecast of FY2023

31 School DX business08

34 Image of medium-term profit

Performance by segment

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Financial Results Overview
for Q2 FY2023

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1

I would now like to give you an overview of the results for the second
quarter of the fiscal year ending September 2023.

Financial highlight１

Operating income declined and was below the forecast.
Main cause: Loss-making projects in DX support business for major companies.
・Net sales: ¥13,613 million(+¥638 million, YoY, Performance forecast comparison: +¥913 million)

・Operating income: ¥(18) million (-¥617 million, YoY, Performance forecast comparison: -¥218 million)
・Ordinary income: ¥187 million (-¥105 million, YoY, Performance forecast comparison: +¥187 million)

2

The full-year forecasts are revised.
(only operating income is revised downward)
・Net sales: ¥26,800 million

3(Compared to the previous forecast +¥800)

・Operating income: ¥200 million(Compared to the previous forecast -¥600)

・Ordinary income: ¥400 million(Previous forecast unchanged)

Healthcare business and School DX business: Results improved as planned.
Other business: Loss-making projects in the DX support business for major
companies continued being dealt with the aim of winding them down in thecourse of this fiscal year.

Copyrights (c) 2023 MTI Ltd. All Right Reserved

2Here are the financial highlights.
First half operating income declined and was below the forecast.
This decline is mainly attributable to loss-making projects in the DX
support business for major companies.
Consolidated net sales increased 4.9% year on year to 13,613 million
yen, and the operating loss was 18 million yen.
Loss attributable to owners of parent came to 326 million yen.
In view of the variance between the first-half forecast and results aswell as recent conditions, we are revising our full-year forecast.
We are raising our net sales forecast by 800 million yen from theprevious forecast, to 26,800 million yen and lowering our operating
income forecast by 600 million yen from the previous forecast, to
200 million yen. Our ordinary income forecast remains the same as
before.
Our main achievements in the first half are as follows.
In the healthcare business and the school DX business, results
improved as planned.
In other business, we are still dealing with loss-making projects inpart of the DX support business for major companies, looking toresolve this issue over the course of the current fiscal year.
I will be discussing our initiatives in each area in greater detail, lateron.

Consolidated P/L
Net sales : increased
Operating income : decreased（Unit：Mil yen）

FY2022Q2

FY2023
Q2

Net sales

12,975

13,613

Cost of sales

3,814

4,481

（ratio)

29.4%

32.9%

Gross profit

9,160

9,132

（ratio）

70.6%

67.1%

SG&A

8,561

9,151

（ratio）

66.0%

67.2%

Operating income

599

(18)

（ratio）

4.6%-%

Ordinary income

292

187

（ratio）

2.3%

1.4%

Profit attributable toowners of parent

123

(326)

（ratio）

1.0%

-%

YoY
AmountPercentage

+638

+4.9%

+666

+17.5%(28)(0.3)%

+589

+6.9%

(617)

-%

(105)

(36.1)%(449)-%

Q1: Posting of spot
sales of the videostreaming service

Posting of spot cost of
sales of the videostreaming service
Increase inoutsourcing expenses.
(School DX business)
Increase in advertisingexpenses (AdGuard)

Q1: Posting of income
taxes associated withthe transfer of shares
between Group
companies

Copyrights (c) 2023 MTI Ltd. All Right Reserved

3

I would now like to discuss the consolidated P/L.
Net sales increased 4.9% year on year to 13,613 million yen.
In the content business, while the number of paying subscribers has
decreased, net sales increased overall due to strong spot sales fromvideo distribution in the subsidiary Video Market, as well as the
successful performance of original comics and security-related
applications. Additionally, the healthcare business and school DX
business have been progressing well.
Gross profit remained stable year on year at 9,132 million yen,primarily due to an increase in the cost of sales of some DX support
businesses for companies.
Operating income posted losses of 18 million yen, primarily due to anincrease in selling and administrative expenses attributed to the risein advertising and promotion expenses as well as outsourcing costs.
Ordinary income stood at 187 million yen due to the recording ofequity-method investment profit of 174 million yen.
Loss attributable to owners of parent came to 326 million yen,reflecting the posting of corporate taxes associated with the transferof shares between Group companies in the healthcare business in
October 2022, which offset the recording of a gain on change inequity of 139 million yen under extraordinary income.

Consolidated SG&A：
Advertising expenses and outsourcing expenses : increased（Unit：Mil yen）

FY2022Q2
SG&A

FY2023
Q2

YoY
AmountPercentage

8,561

9,151

+589

+6.9%

758

1,016

+258

+34.1%

3,835

3,947

+111

+2.9%

1,538

1,491

(46)

(3.0)%

Subcontract
expenses

885

1,041

+156

+17.6%

Depreciation

633

591

(42)

(6.6)%

Other

909

1,062

+153

+16.8%

Advertisingexpenses
Personnel
expensesCommission fee

Increase in sales
promotion costs for
AdGuard

Stricter requirements
for the posting ofsoftware assets(School DX business)

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The breakdown of consolidated SG&A is as shown on page 4.

4

(Reference) Income tax-related settlement of gains
on sale of shares in Boshimo Ltd.

Non-consolidated
settlement

Consolidated
settlement

Contributing to increase of ¥1,096 million in profit
Gain on sale of shares of subsidiaries: ¥1,579 million
Income taxes: ¥483 million

Contributing to decrease of ¥483 million in profit
Gain on transfer of shares: ¥0 million (Consolidated elimination)
Income taxes: ¥483 million (Deferred income taxes will not be
posted)Copyrights (c) 2023 MTI Ltd. All Right Reserved

5

Details of the posting of corporate taxes, which is the main reason forthe decline in profit, are as shown on the slide.
During the first quarter, we posted income taxes associated with thetransfer of shares between Group companies of 483 million yen.

Difference between earnings forecast and the actual for Q2
Net sales : Posting of spot sales of the video-streaming service.
Operating income : Measures to deal with loss-making projects in DX support business(increase in cost of sales), decrease in orders received in AI business.
Ordinary income : Recording of equity method investment income.
Profit attributable to owners of parent : Recording of gain on change in equity(extraordinary income) .
（Unit：Mil yen）

FY2023 H1

Difference

The latest
earnings forecast

Actual

12,70013,613＋913

Operating income

200

(18)

(218)

Ordinary income

0

187

+187

(740)

(326)

+414

Net sales

Profit (loss) attributableto owners of parent

AmountCopyrights (c) 2023 MTI Ltd. All Right Reserved

6

I will now explain the reasons for the variance between the first-halfforecast and results.
Net sales exceeded the initial plan mainly due to the strong video
sales of subsidiary Video Market Corporation.
However, operating income was lower than forecast primarilyreflecting an increase in the cost of sales as a result of the ongoing
response to loss-making projects in the DX support business for
major corporate customers and sluggish growth of orders in the AI
business of subsidiary Automagi Inc.
Ordinary income was higher than the initial forecast as a result of anequity-method investment profit posted due to the improved resultsof associated companies in contrast to the initially expected equitymethod investment loss.
Profit attributable to owners of parent improved from the initial
forecast mainly due to the recording of a gain on change in equity
under extraordinary income in addition to higher-than-expected
ordinary income.

Revision of earnings forecast of FY2023
Net sales : Posting of spot sales of the video-streaming service.
Operating income : Measures to deal with loss-making projects in DX support business(increase in cost of sales), decrease in orders received in AI business.
Ordinary income : Recording of equity method investment income.
Profit attributable to owners of parent : Recording of gain on change in equity(extraordinary income) .
（Unit：Mil yen）

FY2023Difference

The latest
earnings forecast

Forecast
this time

26,00026,800+800

Operating income

800

200

(600)

Ordinary income

400

400

-

(600)

(400)

+200

Net sales

Profit (loss) attributableto owners of parent

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Amount7

In light of first-half results and in view of the higher cost of sales inthe DX support business for corporate customers and continued slow
growth in orders for AI business in the second half, in our full-year
consolidated business results forecast, we have raised our net sales
forecast and lowered our operating income forecast, left our ordinary
income forecast unchanged and raised profit attributable to owners ofparent in their forecast.

Performance by segment

Content
Business・Content service(Entertainment & Life content)

・Original comics service

Security

Healthcare
Business
・Healthcare service for
women
・Childcare DX service
・Cloud drug record service
・Online consultation
service, etc

School DX
Business・School DX service

Other
Business
・AI business・DX support businessfor companies
・Solution service forcorporate

comic

Copyrights (c) 2023 MTI Ltd. All Right Reserved

Next, I would like to explain the performance by segment.

8

Content business: Net sales and operating income（Unit：Mil yen）
9,502

9,076

Net sales increased,
and the profit slightly
decreased＋： Posting of spot sales of thevideo-streaming service (Q1)

2,857

2,794

－：The number of paying
subscribers decreased
Advertising expenses increased
FY2022
1H
Net sales

FY2023
1H
Operating income

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9

In the content business, net sales increased and operating income
slightly declined.
Net sales increased 4.7% year on year, to 9,502 million yen due tothe posting of spot sales of video distribution.
Operating income decreased 2.2% year on year, to 2,794 million yen
due to an increase in the cost of sales associated with the posting of
spot sales of video distribution.

Content business: The number of paying subscribers

Total paying subscribers

3.73 million subscribers
4.48 4.38

4.23 4.16

3.95 3.89
3.80 3.79 3.76 3.73

Degree of decrease
is being reduced
・Brisk Security-related apps

3.78 3.69
3.57 3.52
3.33 3.27 3.20 3.20 3.18
3.16

・Mostly unchanged from theprevious quarter

0.70 0.69 0.66 0.64 0.62 0.62 0.60 0.59 0.58 0.57
1Q

2Q

3Q

4Q

1Q

FY2021
Healthcare business

2Q

3Q

FY20224Q

1Q

2Q

FY2023

Content business* The number of paying subscribers are including healthcare business ‘Luna-luna and ‘Caradamedica’ whose business model are monthly paid business above.
Copyrights (c) 2023 MTI Ltd. All Right Reserved

As of the end of March, the number of paying subscribers stood at
3.73 million.
This figure is mostly unchanged from the previous quarter.

10

Content business: Security-related app

Total paying subscribers

Security-related apps
are growing
Over 570 thousand people
Four functions

Ad blocking
1Q

2Q

3Q

FY2022

4Q

1Q

Trace blocking

2Q

Threat blocking

Parent function（Child protection
function）

FY2023Copyrights (c) 2023 MTI Ltd. All Right Reserved

11

As of the end of March, the number of paying subscribers to security
related apps had grown to 570,000.

Content business: Original comics content businessNet sales

Stable growth
The serialization of
hit titles contributed
Keep in comic titles introduced

1Q

2Q

3Q

FY2021

4Q

1Q

2Q

3Q

FY20224Q

1Q

2Q

FY2023Copyrights (c) 2023 MTI Ltd. All Right Reserved

12

The original comics content business had multiple hit titles inserialization, leading to stable growth.
Especially in the second quarter, the business posted its second
highest net sales on record.
This was due to growth in the number of downloads, following thedramatization of two hit titles on TV from January through February.

Healthcare business: Net sales and operating income（Unit：Mil yen）
2,242

Net sales increased,
and the loss decreased

1,885+: Cloud drug record
service going well(219)+: Brisk Childcare DX
services(648)
FY2022

FY2023

1H

1H

Net sales

Operating income－: The number of paying
subscribers decreased

Copyrights (c) 2023 MTI Ltd. All Right Reserved

In the healthcare business, net sales increased 18.9% year on year,
to 2,242 million yen.
While the number of paying subscribers declined year on year, thecloud drug record service and the childcare DX business performed
well.

The operating loss came to 219 million yen.
The loss narrowed by 428 million yen thanks to the effect of higher
sales and cost reduction despite the continued burden of costs
associated with upfront investments.

13

Healthcare business: The number of paying subscribers

Healthcare paying subscribers(LunaLuna, CARADA medica)

0.57 million subscribers

Mostly unchanged fromthe previous quarter
0.62

0.62

0.60

0.59

0.58

0.57

1Q

2Q

3Q

4Q

1Q

2Q

FY2022

FY2023Copyrights (c) 2023 MTI Ltd. All Right Reserved

The number of paying subscribers in the healthcare business was
mostly unchanged from the previous quarter at 570,000.

14

Healthcare business: Cloud drug record service

1,532

+150

Pharmacies
introduced

1,532
1,382
1,264

1,096
978
864
765
573

633

Steady expansion
in the number ofpharmacies that
introduced the service

451

1Q

2Q

3Q

FY2021

4Q

1Q

2Q

3Q

FY20224Q

1Q

2Q

FY2023Copyrights (c) 2023 MTI Ltd. All Right Reserved

15

The cumulative number of pharmacies that have introduced the cloud
drug record service increased by 150 stores in the second quarter,
reaching a total of 1,532 stores.

School DX business: Net sales and operating income（Unit：Mil yen）

Sales expansion

309

・+155%, YoY
・Increase in number ofschools introducing

121

Operating loss
(232)

FY2022
1H
Net sales(461)
FY2023
1H
Operating income

・Stricter requirements forthe posting of software assets(FY2022 Q3~)
・Large-scale upfront investment to
respond to a surge in orders

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16

In the school DX business, net sales increased 155.1% year on year
to 309 million yen.
The operating loss was 461 million yen due to the stricter accounting
for software assets since the third quarter of the previous fiscal year
and the expansion of subcontracting costs at the same level.

School DX business Cloud-based school affairs support system
The number ofschools introduced
566

340

・Definite orders received for October 2023
introduction (26 schools)
・Many potential projects for April 2024
introduction

114

FY2021

Expansion in number ofschools introducing thesystem from April 2023

FY2022

FY2023（3月まで）

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17

Against a backdrop of growing demand for cloud-based school
administration support systems, the number of schools that haveadopted BLEND stood at 566 as of the end of March, up 166.7% year
on year.
In March, there was a rush to introduce the system, ready for use
from the start of the new school year in April.

School DX business Cloud-based school affairs support system

Motivation Works Inc.

Share grew to 25% of all private high schools in Japan
FY2023

FY2022Introduced

Introduced

16%

25%

Not introduced

Not introduced

84%

75%
*Includes some elementary and junior high schools

Document: Created by our company, sourced from the Ministry of Education, Culture, Sports, Science and Technology (MEXT) website.
（https://www.mext.go.jp/a_menu/koutou/shinkou/main5_a3_00003.htm#topic1）
Copyrights (c) 2023 MTI Ltd. All Right Reserved

18

There is still growing demand for digitization of school administration
at schools across Japan.
The cloud-based school administration support system BLEND offeredby our subsidiary Motivation Works Inc. not only reduces theworkload of teachers but also allows schools to contact guardians,
check performance and so forth. As a result, schools, especiallyprivate high schools, are keen to introduce the system and BLEND
has now been introduced by 25% of all private high schools in Japan.

Other business (Includes DX support business for companies, AI):Net sales and operating income（Unit：Mil yen）

2,538

Sales slight decreased

2,417

868

629

AI business

1,669

1,787

DX support
business forcompanies

FY2022
1H

FY2023(176)

1H・AI business

Operating loss
・Responded to loss-making
projects in part of the DX
support business for major
companies(807)

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19

In other business, net sales declined 4.8% year on year to 2,417
million yen.
This was due to a decrease in the volume of orders in the AI business,despite an increase in net sales in the DX support business forcompanies.

Operating loss increased to 807 million yen.
This was due to a significant increase in cost of sales since the third
quarter of the previous fiscal year in some of the DX support
businesses for companies.
We are currently working to resolve the loss-making projects in thisbusiness and aim to resolve them within the current fiscal year.

Approach in Q3 and beyond

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20

Next, I would like to explain the approach in the third quarter of fiscal
year 2023 and beyond.

Basic policies and priority issues for FY2023
1. Healthcare business: Further sales growth① Further expansion of the Cloud drug record service② Promotion of the platform strategy of the childcare DX, "Boshimo"

2. School DX business: Further sales growth① “BLEND” version upgrade② Increased number of schools introduced in April

3. Content business: Securing profit① Original comics content business growth② Security-related app growth

4. Other business: Sales growth① AI business expansion② DX support business expansion
Copyrights (c) 2023 MTI Ltd. All Right Reserved

21

In each segment, we will focus on priority issues based on thefollowing basic policies, respectively.
・In the healthcare business, we will continue to aim for further sales
growth. More specifically, we will focus on further expanding thecloud drug record service and will also promote the childcare DX
platform strategy.
・Similarly in the School DX Business, we will aim for further sales
growth.
・In the content business, the decline in the number of paying
subscribers has slowed but we plan to generate profit in the segment
as a whole through growth in security-related apps and the original
comic business.
・ In other business, we will strive to increase orders in the AI
business and DX support business and strive to resolve the lossmaking projects in the DX support business.

Healthcare business: Cloud drug record service
Connecting pharmacies and patients

Cloud drug record service

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22

Next, I would like to explain the progress targets regarding the
introduction of our cloud drug record service in the healthcare
business.

Healthcare business: Cloud drug record service
Continuing to strengthen cooperation in sales
and to reinforce function development① Continuing to strengthen cooperation in sales
・Collaboration with a major prescription
pharmaceutical wholesaler

Aim for

2,000⇒ Sharing more sales
information andimproving efficiency

pharmacies
introduced
FY2023

1,532② Continuing to strengthen function development
for differentiation

・・・

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FY2021

FY2022・Connecting the drug histories possessed bydifferent pharmacies
・Home care and nursing functions
・Additive Logic, Guidance Navigation
・Planning to add electronic prescriptions andother functions as needed

FY2023Copyrights (c) 2023 MTI Ltd. All Right Reserved

23

In the cloud drug record service, the number of pharmacies thathave introduced dispensing pharmacies is steadily increasing.
To achieve our goal of introducing dispensing pharmacies at 2,000
pharmacies by the end of the current fiscal year, we will strengthen
sales and carry out development to enhance functions.
To strengthen sales, we will continue to cooperate in sales with ourbusiness partner MEDIPAL HOLDINGS CORPORATION and improve
efficiency by meticulously sharing sales information, as in theprevious fiscal year.
We will also continue to strengthen the development of functions fordifferentiation.
Specifically, we will add or enhance functions as needed, such asfunctions for connecting the drug histories possessed by different
pharmacies, for home nursing care, for calculations for necessary
nursing hours, guidance navigation, and support for electronicprescriptions.

Healthcare business:
Maternal and child health handbook app + Childcare DX services
Connecting parenting households and municipalities

Maternal and child health handbook app+ Childcare DX services

Copyrights (c) 2023 MTI Ltd. All Right Reserved

24

Next, I would like to explain our progress targets for the maternaland child health handbook app “Boshimo” and childcare DX services.

Healthcare business:
Maternal and child health handbook app + Childcare DX services

Development of the platform businessstarting with the maternal and childhealth handbook app "Boshimo"Phase 1：Introducing maternal andchild health handbook app “Boshimo”
Phase 2：Online consultation
Phase 3：Childcare DX services

Copyrights (c) 2023 MTI Ltd. All Right Reserved

In the field of childcare business, we have divided the services into
phases, including the maternal and child health handbook app"Boshimo," online consultations, and childcare DX services, and are
expanding our service offerings.

25

Healthcare business:
Maternal and child health handbook app + Childcare DX services
Phase 1,2 : Maternal and child health handbook app ”Boshimo” & Online consultation

Making “Boshimo” the standard maternal and child health handbook app
P has e1 Maternal and child health handbook app

P has e2 Online consultation”Boshimo” & Online consultation
As of March, 2023

522

YOY

FY2018contracts

As of March, 2023

+80

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FY201770

FY2019FY2020

FY2021

FY2022

FY2023

4Q

1Q

FY20202Q

3Q

FY2021

4Q

1Q

2Q

3Q

FY20224Q

1Q

2Q

FY2023Copyrights (c) 2023 MTI Ltd. All Right Reserved

Among the 1,741 municipalities nationwide, the number ofmunicipalities that have introduced the "Boshimo" app reached 522
as of the end of March. "Boshimo" has become the standard
maternal and child health handbook for municipalities.
Additionally, out of the municipalities that have adopted "Boshimo,"
the number of municipalities that have also introduced the online
consultation service has reached 70.

26

In Phase 3 of the childcare DX services, we are not only focusing on
the relationship between parents and municipalities but also extends
to the sharing of data with medical institutions such as neighboring
pediatric clinics and health centers. Through this, we seek to bring
DX to services like childhood immunizations, infant health check, andvisits to all households with infants.

Among municipalities that have introduced “Boshimo”, the number
adding these childcare DX services functions increased sharply fromJanuary through March and now totals 45.
In particular, the number of municipalities introducing thequestionnaire and appointment functions increased, with the Ministryof Health, Labour and Welfare’s “Accompanied Support Program ”
launched in January this year serving as a tailwind.

(Reference) Healthcare business:
Maternal and child health handbook app + Childcare DX services
Phase 3：Childcare DX services

What is ‘Accompanying Support Program’?
Government pregnancy and childcare support service launched in January 2023. Supports pregnant women andchild-raising families with children below the age of 3 to plan for childbirth and raising children. Includes a total ofthree face-to-face meetings (upon registration of pregnancy and directly before and after birth) and a gift voucherof 100,000 yen. Parents are also put in contact with a local counselling organizations to give them peace of mind
and provide a supportive environment for childbirth and parenting.
Pregnant
Women andchild-raising
Families

Late stageof pregnancy

Early
pregnancymunicipalities
andConsultation
Service

MTI Group

Immediately
after childbirthChildcare

Accompanying Support

Municipalities are introducing the “Boshimo” Childcare DX online support
service as a service for pregnant women and child-raising families.
Reservation form /Questionnaire form

Reservation form /Questionnaire form

Copyrights (c) 2023 MTI Ltd. All Right Reserved

Pre-examination
form ・・・

28

I would now like to explain the relationship between the
Government’s “Accompanied Support Program” for pregnant womenand families with children and our childcare DX services.
The “Accompanied Support Program” is a government pregnancy andchildcare support service launched in January 2023.
Under the program, municipalities or local counselling organizations
offer advice and provide support to pregnant women and families
with children below the age of 3 to help them plan for childbirth andraising children.
More specifically, three counselling sessions are available and parents
are put in contact with local counselling organizations to give thempeace of mind and provide a supportive environment for childbirthand parenting.
In our Boshimo childcare DX support business, we provide various
childcare DX support services to municipalities.
The appointment schedule and and questionnaire functions arefunctions that expedite this “Accompanied Support Program” and thenumber of local governments introducing these services increased
sharply by March of the year.

Healthcare business:
Maternal and child health handbook app + Childcare DX services
The “Boshimo” app and Childcare DX service are evolving into a platform.

Phase

1

2

3
Childcare DX services

Servicefunctionalities

Fee

The number ofmunicipalities
introduced

Maternal andchild healthhandbookapp¥50,000~¥100,000/
month

522

Onlineconsultation

Monthly：Tensof thousandsof yen70

・ Childhood immunizations Tailwind for the(Digital preliminary examination
slip , etc.)

Accompanying
Support・ Infant health checkinitiative
・Visits to all householdswith infants
・ Questionnaire andreservation form functionality

Initial：Millions of yen ～Monthly：Hundreds ofthousands of yen ～45(Number of municipalities
nationwide 1,741)
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29

One after another, the municipalities that have introduced thematernal and child health handbook app and realized how convenient
it is are now introducing various childcare DX service functions.
Most recently, while we are still receiving a great deal of inquiries
about the questionnaire and appointment schedule functions, we arealso getting many inquiries about other childcare DX services such as
the child immunization service, infant health checkup service andinfant home visiting service for all houses.
Going forward, we will continue increasing the number ofmunicipalities introducing multiple childcare DX services aiming forthe development of a childcare DX platform.

(Reference) Healthcare business:
Maternal and child health handbook app + Childcare DX services
Phase 3：Childcare DX services

Municipalities which were quick off the mark with childcare measures
are pushing ahead with DX through the introduction of MTI’s services.
Kitakyushu City,
Fukuoka Prefecture

Ichihara City,
Chiba Prefecture

Electronic filing of pregnancy
notifications(APP)・ Prior applications for issuance of a maternal andchild health handbook can be submitted via the app.
・ Pregnancies registered via the app account for
more than 93% of the total birth rate.

Digital pre-vaccination form forchildhood immunizations
・Digital pre-vaccination forms are being used at
medical institutions that have introduced the service.
・Time taken for verification between vaccinations
has been shortened from 3 minutes to several
seconds.

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30

I would now like to highlight some examples of municipalities that have beenquick to introduce our childcare DX services and are leading DX in the childcare
field.
Let me start with Kitakyushu City in Fukuoka Prefecture.
Kitakyushu City introduced the “Boshimo” maternal and child health handbook
app in January 2021.
Later in April 2022, we signed a cooperation agreement with Kitakyushu City,
which has added the pregnancy registration function and appointment function
and is embracing DX in its childcare services.
Since pregnancies can be registered via the app, this reduces the number oftimes guardians visit the city hall and reduces their workload.
Similarly when it comes to the city hall’s administrative tasks, the personal
identification procedure is simpler and subsequent childcare related application
procedures are simpler, resulting in dramatic improvement in overall work
efficiency.
Kitakyushu City is currently considering the addition of other functions and weare confident we can support the city’s advanced childcare DX through the useof our childcare DX services.
Moving on to the example of Ichihara City in Chiba Prefecture.
Ichihara City already shares data with multiple neighboring medical institutions
and the use of digital pre-vaccination screening questionnaires is increasing.
Many types of vaccines must be given to children from birth to age 6 andespecially before the age of 2 years; however, intervals must be left between
vaccination doses.
The work of checking these vaccination intervals in paper-based immunization
registries takes around three minutes each time whereas with digital prescreening certificates the data can be cross-checked instantly. This is an
example where DX is being embraced because the local government’s workload
is reduced and guardians spend less time waiting.

Motivation Works Inc.

School DX businessConnecting students and teachers

Cloud-based school affairs support system

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Next, I would like to explain more about the school DX Business.

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School DX business

Cloud-based school affairs support system

Motivation Works Inc.

Conceptional image of a risein the number of schools introducing the system

Aiming to expand thenumber of schools to be
introduced in the next
fiscal year

⇒Planned

566

・Definite orders received for October 2023
introduction (26 schools)
・Many potential projects for April 2024
introduction

340
114

FY2021

FY2022

FY2023
FY2024（3月まで）FY2025

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32

With demand for cloud-based school administration support systems
still growing, we plan to further expand the number of schools
introducing “BLEND”.
Among schools which decided not to introduce the system before the
new school year in April, there is still strong interest in the cloudbased school administration support system and so we will continue
conducting proactive sales activities that will lead to introduction by
the next fiscal year.

School DX business

Cloud-based school affairs support system

Motivation Works Inc.

Image of medium-term profit

Aiming to significant
reduce loss next fiscal
year
Net sales : Expansion of the number ofschools that introduced the system
Operating income : Significantly reducing
introduction expenses per school
FY2021

FY2022

FY2023

ActualActualPlannedFY2024
Planned

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33

In the school DX business, there is every prospect of a smaller loss
next fiscal year, given expectations for a boost to sales fromexpansion in the number of schools introducing “BLEND” andsignificant reduction in introduction costs per school as a result of thedevelopment of a new version which will reduce development andoperating costs in the future.

We remain strongly committed to the school DX business.

Image of medium-term profit(by segment)

Content business

Healthcare business

Degree of decrease in the number of paying subscribers is reduced
Focus on highly in-demand contents

Focus on expansion of stock sales (=profit)

School DX business
Sharp growth in a short period of time

Other business(Includes DX support
business for companies, AI)
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34

Our medium-to-long term earnings projection is as shown here.
The school DX business is expected to achieve the fastest
business growth, followed by the healthcare business as anothergrowth driver.
The medium-to-long-term earnings projection for the Group asa whole is as shown here and we believe that the healthcare
business will be a driver of profit growth in the medium andlong term.
By focusing on the steadily expanding cloud drug record service
and the childcare DX service, we aim to achieve “sustainablegrowth” through growth in the subscription-based sales of eachservice.

〈Contact us〉
Investor Relations Officee-mail: ir@mti.co.jp
https://ir.mti.co.jp/eng/

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Thank you for your time.