For the First Half ofFiscal year ending September 30, 2015

Financial Results Presentation
May 7, 2015 Securities Code:9438

CONTENTS
1Consolidated Financial Results Overview for Q2 FY2015

14

New Actions from Q3 FY2015

27

Appendix

2 Financial Highlights
3 Consolidated P/L
4 Consolidated SG&A
5 Progress for Earnings Forecast for the Full-year Term
6 Business Overview
13 Consolidated B/S

15161718
2223

Basic Policy in the FY2015
Enhancement in the Non-virtual Affiliate Network
Enlargement of Contents Services
Expansion of the Healthcare-related Service Business Domain
Consolidated Earnings Forecast for the FY2015
Image of Growth Operating Income

Consolidated Financial Results Overview
for Q2 FY2015

1

Financial Highlights

１Net sales and operating income in the first half reached record highs!
The number of paying subscribers on smartphones expanded to 5.9 million!

Net sales ¥16,620M
Operating income ¥2,108M
Net income2¥1,088M(Up1,340 millions of yen, Up 8.8%, YoY)
(Up 803 millions of yen, Up 61.6%, YoY)
(Up 298 millions of yen, Up 37.7%, YoY)

Dividends in commemorationof the change of the market to the TSE First Section will be paid.

Interim dividends¥6

Include common dividends; ¥5Include commemorative dividends; ¥1*After share split

3Net sales, operating income, and the dividend per sharewill likely reach record highs!

Net sales ¥34,000M
Operating income ¥4,200M
Annual dividends¥12 *After share split

2

Consolidated P/L■Strong performance of SugoToku content (NTT docomo) Sales and income■Improvement in average revenue per user (ARPU)
Increased YoY
ChangeSix months ending
September 30, 2015

Six months ended
September 30, 2014

16,62015,279+1,340+8.8%

Cost of sales

2,666

2,476+190+7.7%

Gross profit

13,95312,803（Ratio）

84.0%

83.8%

+1,150+9.0%

SG&A（Ratio）

11,845
71.3%

11,498
75.3%

+347

+3.0%

2,108

1,304

12.7%

8.5%

+803

+61.6％

Ordinary income

2,034

1,310（Ratio）

12.2%

8.6%

+724

+55.3%Net income

1,088

790

+298

+37.7%（Ratio）

6.6%

5.2%

(Millions of yen)

Net sales

Operating income（Ratio）

AmountPercentage

3Consolidated SG& A■Focused on investing in advertising to attract new subscribers. (Up 623 millions of yen)

Appropriately controlled selling, general and administrative expense through meaningful use.
(Up 347 millions of yen)
ChangeSix months ending
September 30, 2015

Six months ended
September 30, 2014

11,845

11,498

+347

+3.0%

Advertising expenses

4,702

4,078

+623

+15.3%

Personnel expenses

2,756

2,826-69-2.5%

Commission fee

1,835

1,641

+194

+11.8%

Subcontract expenses

682

898

-215

-24.0%

Depreciation

694

886-192-21.7%

1,174

1,167

+6+0.6%(Millions of yen)

SG&AOtherAmountPercentage

4Progress for Earnings Forecast for the Full-year Term

■Net sales and operating income reached roughly 50% of the annual forecast.

Performance was good.

(Millions of yen）

FY2015Full-year
forecast

st1 half
actualProgress ratio

Net sales

16,62034,00048.9%

Operating income

2,108

4,200

50.2%

（Ratio）

12.7%

12.4%

Ordinary income

2,034

4,120（Ratio）

12.2%

12.1%

Net income

1,088

2,270（Ratio）

6.6%

6.7%

49.4%

48.0%

5

Business Overview: The Number of Paying Subscribers (Smartphone)

5.90M paying subscribers
Up 0.38M, compared to December 31, 2014

Monthly change in the number of paying subscribers for smartphones
5.33
4.26

4.41

4.76

5.28

5.40

5.90

5.52

4.80

3.67

iPhone1.19

10月 11月 12月 1月 2月 3月 4月 5月 6月 7月 8月 9月 10月 11月 12月 1月 2月 3月 4月 5月 6月 7月 8月 9月 10月 11月 12月 1月 2月 3月

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar20122013

2014

2015

6Business Overview: The Total Number of Paying Subscribers

8.08M paying subscribers

Smartphone ratio

exceeds73%

Up 0.25M, compared to December 31, 2014

Quarterly change
in the numberof paying subscribers
全体有料会員数
四半期推移
8.59

8.58

8.04

8.13

8.16

8.26

7.94

8.04

7.85

8.17

65.2％

7.90

7.86

7.83

8.08

73.0%

51.6％

13.5％

11/12 12/03 12/06 12/09 12/12 13/03 13/06 13/09 13/12 14/03 14/06 14/09 14/12 15/3
Feature phones
フィーチャーフォン

Smart phones
スマートフォン
7

Business Overview: docomo ”d-menu” Ranking

No.1
MusicE-book

8contents!
Photo book

Healthcare-relatedpregnancy, childbirth,childcare

Multi-dictionary

Decoration e-mailUnlimited distribution

Western
Fortune-telling

ゲッティ イメージズ

Weather info

No.2

Diet &beauty

Eastern
Fortune-telling

Puzzle game

Comic

Point at phrases

No.3* Source: Ranking data from “d-menu”, a portal site for smartphone services, by NTT docomo Co., Ltd. as of April 20 , 20158

Business Overview: Non-virtual Affiliate Advertising Sales

Sales remained steady
Quarterly change

Year-on-year comparison（Millions of yen）
500

（Millions of yen）

500
400

400

300

300

200200

100

100

0
1Q Q2
2Q Q3
3Q Q4
4Q 1Q
Q1
Q1 2QQ2 3Q
Q3 4Q
Q4 1Q
Q1 2Q
Q2
FY2013

FY2014

Includes shopping season
in March*Increased sharply due tocash back campaign by carriersin the same period of previous
fiscal year.

01Q
Q1

2Q
Q2

Q33Q

Q44Q

FY20152013年9月期
FY20132014年9月期
FY20142015年9月期
FY2015

9Business Overview: docomo SugoToku and au Smart Pass

SugoToku content increasing even higher!!
<Trends
in sales>＜売上高推移＞docomoSugoToku,
Smart Passdocomo
スゴ得・auau
スマートパス■ au Smart Pass

3Q
Q3

4Q
Q4FY2013
2013年9月期

1Q
Q1

2Q
Q2■ docomo SugoToku

3Q
Q3

FY20142014年9月期

4Q
Q4

1Q
Q1

2Q
Q2

FY20152015年9月期

10Business Overview: Enlargement of Contents Services

Following books and comics, videos
began to be distributed in March!
￥400

per month（excluding tax）

The price remains the same.
GeneralMusic

Equity method affiliated company

E‐book+sales percustomer（ARPU）

UP!

11

Business Overview: Measures to Improve the Average Revenue Per User (ARPU)

Responding to the needs of smartphone users
ServicePrice level

Categories

Highadded value

WeatherinformationPremier Course￥300

Music・Books & Comics
・Video & DVD￥400 *￥300

per month（excluding tax）

per month（excluding tax）

per month（excluding tax）

・Started communitybased weather
information

・Integrated popular
categories in carrier
shops

・Shifted frommanagement date of
menstruation to befocused on pregnancy,
child-rearing

Basic value

Videos!
Videos!

*￥100

per month（excluding tax）

Free of charge

Healthcare-related
information￥300

respectively per month（excluding tax）

￥180

per month（excluding tax）

Free trial campaign*There are some of price plans including ¥300/month (excluding tax) and fixed charge course and optional coins.
For more details, please visit our service site (Japanese only).
*comic.jp was integrated into music.jp.

12Consolidated B/SCash and deposits stood at 10.1 billions of yen, reflecting a capital increase
through a market procurement etc. (4.78 billions of yen as of September 30,2014)(Millions of yen)
Current assets
Cash and deposit
Notes and accounts
receivable-trade
Other
Allowance for doubtful
accounts
Noncurrent assets
Property, plant andequipment
Intangible fixed assets
Include software
Investments and otherassets
Include investment
securities

Total Assets

As ofMarch 31, 2015

As of September
30, 2014

Change（Millions of yen)

18,263
10,116

12,183
4,782

6,080 Current Liabilities
5,333 Accounts payable-trade

6,952

6,294

657

1,282

1,214-88-108

As ofMarch 31, 2015

As of September 30,2014

Change

6,246
1,041

5,727
976

519
64

Account payable-other

3,210

2,317

892

68

Income taxes payable

712

674

37

20

Allowance for coin usage

Other-116 Noncurrent liabilities

234

277

-42

1,047
1,313

1,480
1,318-433
-4

4,469

4,585

137

143

-5

Long-term loans payable

500500-

2,029
2,003

2,177
2,150-148-147

Net defined benefit liability
Other768
45768
49

0-4

2,302

2,264

38 Total liabilities

7,560

7,045

514

940

813

127 Capital stock

22,732

16,768

5,964

4,846

2,596

2,249

Capital surplus

5,361

3,111

2,249

Retained earning

5,132

4,305

826

Treasury stock

-695

-695

-

Other comprehensive
income46-27

73

Subscription rights toshares

177

206

-29

Minority interest

304

224

79

Net assets

15,172

9,722

5,449

Total liabilities
and net assets

22,732

16,7685,964

13

New Actions
from Q3 FY2015

14

Basic Policy in the FY2015

Further expansion in the number of paying
subscribers for smartphone services
Enhancement in the Non-virtual Affiliate Network

Improvement in average revenue per user（ARPU）・
expanding SugoToku content
Enlargement of Contents Services

Mid-to-long-term approach
Expansion of the Healthcare-related Service
Business Domain
15

Enhancement in the Non-virtual Affiliate Network

Since 2nd half FY2014
Establishment of sales offices to construct a detailed sales system
Hokkaido・Tohoku・
Kita- kanto・Hokuriku・Tokyo・Tokai・Kansai・
ChugokuShikoku・Kyushu・Okinawa

Sales
promotion
expertisefor content
services

Cellphone shop
occupancy rate

Approach toUP!

thequantity

Subscriber rate

UP!

Since FY2015

Introduction of a compensation system based on the withdrawal rate ofeach cellphone shop

（low）

ASSS

Goodshops

Withdrawal rate

CB（high）

Commission fee（high）…

Approach to

Withdrawal ratethequality

DOWN!

…

（low）

16

Enlargement of Contents Services

Initiatives to improve

Steps are being taken steadily
for each type of contentⅰ) Lifestyle information services
are to be integrated.
Weatherinformation

Maps &Navigationⅱ) Providing higher value-added
healthcare-related services.
Question todoctors

×The answers over the phones madeby healthcare providers, not doctors.

17

Expansion of the Healthcare-related Service Business Domain ⅰ)

Four main Healthcare-related Services

1

Women healthcare-related
information service

2

Medical information service
cooperated with doctors etc.

LunaLunaLite
The total number of the downloading
as of the end of last April

A health checkservicewill start!

7.2 million in total!

■The answers over the phones made by healthcare providers, not doctors.

3

Gene analytics service

4Machine-to-machine service

New Kit
Launched
in April!

18

Expansion of the Healthcare-related Service Business Domain ⅱ)

Renovating the gene analytics service in responseto the advent of personal genome service!
Gene analytics service（Subsidiary, EverGene Ltd.）

DearGene
Launched
Starter kit!

From April, a limited number of units (2,000 units) are being sold for ¥4,980 (excluding tax).

19

Expansion of the Healthcare-related Service Business Domain ⅲ)

Subsidiaries have been addedin the healthcare-related business!

Healthcare management
for athlete
CLIMB Factory

Electronic medicinenotebook service
PHARUMO

Analysis and support

Data coordination[Customers]
Japan Football Association, Japan Rugby
Football Union, Tokyo Yakult Swallows,
Saitama Seibu Lions others20

Expansion of the Healthcare-related Service Business Domain ⅳ)

Aiming for CUSTOM-MADE Healthcare-related Services
Developing healthcare information management databases
to connect data in each service

Consultation
services withdoctors andmedicalprofessionals

Data coordination

Data coordination

Data coordination

Genetic
test&researchPregnancy hunting, pregnancy,
childbirth and child-rearing support (Women)
Freeservice

Chargeservice

Data coordination

Research cooperators（Subsidiary）

Trying toconceive

Data coordination

Electronic
medicine
notebook（Subsidiary）

For
PregnancyForChildcare

Cooperation with othercompanies and groups

Chemical
Thermometercoordination

Machine-to-machine
Activity meter“karadafit”

Electronic
Maternity healthrecord book
(Supplementaryreader)

Healthcare
management
for athletes（Subsidiary）

Body weight, body fat,Finger ring-type
and visceral fate rate
heart rate meter21

Consolidated Earnings Forecast for the FY2015(Millionsof yen)

FY2015FY2014 (Actual)

ChangeAmount

Percentage

15,705+3,014+9.7%2,476

2,512+511+10.3%

23,43911,498

11,940

+860

+3.7%

2,091

2,557

1,304

1,252

+1,642+64.2%

12.7%

12.0%

8.3%

8.5%

8.0%

4,120

2,034

2,085

2,519

1,310

1,209

+1,600+63.5%(Ratio)

12.1%

12.2%

12.0%

8.1%

8.6%

7.7%

Net income

2,270

1,088

1,181

1,337

790

547

+932

+69.7%(Ratio)

6.7%

6.6%

6.8%

4.3%

5.2%

3.5%

Full-year

1st half

2nd half

Full-year

1st half

2nd half

34,00016,62017,37930,985

15,279

5,500

2,666

2,833

4,988

24,30011,84512,454

Operatingincome4,200

2,108(Ratio)

12.4%

Ordinary
incomeNet sales

Cost of sales

SG&A（Full-year） （Full-year）

22

Image of Growth Operating Income

Achieving record operating
income and further expansion

Current growth
image

Revised forecast(on 2/4）¥4.20B
ARPU
improvement（past record: ¥3.70B）

SugoToku
enlargement

Forecast at the
beginning of thecurrent fiscal year（on 11/5）¥3.05BFY2014 Actual

Withdrawal
rate down
Growth image at the
beginning of thecurrent fiscal year

¥2.55B
Enhancement in the non-virtual affiliate network

・Increase in contents service of MTI own contents
・Increase in advertise sales for contents from the third parties.

Optimize cost
FY2014FY2015FY2016〜23

〈Contact us〉
Public Relations & Investor Relations Department
TEL: +81-3-5333-6323 FAX: +81-3-3320-0189
MAIL: ir@mti.co.jp
www.mti.co.jp
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.