UNOFFICIAL TRANSLATION
The formal official document is in Japanese

Summary of Consolidated Financial Results for the First Three Quarters of
Fiscal Year ending September 30, 2024 (Japanese Accounting Standards)
August 6, 2024
Tokyo Stock Exchange

Listed Company Name: MTI Ltd.
Listing Exchanges:
Securities Code9438
URL
https://ir.mti.co.jp/eng/
Representative:
Toshihiro Maeta, President and Chief Executive Officer
Contact:
Hiroshi Matsumoto, Senior Managing Director
Phone: +81-3-5333-6323
Scheduled date of dividend payment: Supplementary documents for quarterly results: Yes
Quarterly results briefing: Yes (for securities analysts and institutional investors(On-demand))(Figures less than one millions of yen are omitted)

1. Consolidated business results for the nine months ended June 30, 2024
(October 1, 2023– June 30, 2024)(1) Consolidated operating results (cumulative total)
Net salesFirst three quarters of fiscal year
ending September 30, 2024
First three quarters of fiscal year
ended September 30, 2023
(Note) Comprehensive income(Percentages represent year-on-year changes)
Profit attributable toOrdinary income
owners of parent

Operating income

Millions of yen%

Millions of yen%

Millions of yen%

20,536

2.0

1,752

－

2,363

－

20,138

4.1

(17)

－

151

72.4

Millions of yen%

2,243 353.0
495－

Nine months ended June 30, 2024: 2,322 millions of yen (395.1%)
Nine months ended June 30, 2023: 469 millions of yen (－%)
Net income
per shareFirst three quarters of fiscal year
ending September 30, 2024
First three quarters of fiscal year
ended September 30, 2023

Net income
per share/diluted
Yen

Yen

40.88

40.86

9.03

－

(2) Consolidated financial position
Total assets
As of June 30, 2024
As of September 30, 2023
(Reference) Shareholders’ equity:

Net assets

Equity ratio

Millions of yen

Millions of yen%

30,287
29,15518,933
17,58350.3
47.9

As of June 30, 2024: 15,220 millions of yen
As of September 30, 2023: 13,953 millions of yen

2. Dividends
Dividend per share
End of firstquarter

End of second
quarter

Yen

Fiscal year ended September 30, 2023－
Fiscal year ending September 30, 2024－
Fiscal year ending
September 30, 2024(forecast)(Note) Revisions to dividend forecasts published most recently: No

End of third
quarterYear end

Annual

Yen

Yen

Yen

Yen

8.00
8.00

－
－

8.00

16.00

8.00

16.00

3. Forecast for consolidated business results for the fiscal year ending September 30, 2024
(October 1, 2023 – September 30, 2024)
Net sales
Full year(Percentages represent year-on-year changes.)
Profit attributable to
Net income
Ordinary income
owners of parent
per share

Operating income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

27,500

2.6

2,200

637.2

2,750

499.8

2,400

218.6

43.68

(Note) Revisions to forecasts for consolidated business results published most recently: Yes* Note:(1) Important changes of subsidiaries during the term(changes in specified subsidiaries resulting in change in scope of consolidation): Not applicable
New: –
Exception: –(2) Application of specific accounting treatment to the preparation of quarterly consolidated financial statements: Not

applicable(3) Changes in accounting policies and changes or restatement of accounting estimates(i) Changes in accounting policies due to the modification in accounting methods:(ii) Changes in accounting policies other than (i):(iii) Changes in accounting estimates:(iv) Restatement:

Not applicableNot applicableNot applicableNot applicable(4) Number of outstanding shares (common shares)(i) Number of shares outstanding at the end of period (including treasury shares):6/24: 61,303,000 shares
9/23: 61,264,600 shares(ii) Number of treasury shares at the end of period
6/24: 6,361,273 shares
9/23: 6,405,973 shares(iii) Average number of shares during the period (quarterly consolidated cumulative period)
Nine months ended 6/24: 54,885,667 shares
Nine months ended 6/23 54,833,564 shares* Status of a quarterly review
This earnings release is not subject to an audit.

* Cautionary statement with respect to forward-looking statements
The forward-looking statements included in this material are based on the Company’s judgments, assumptions, and convictions basedon information available to the Company at the time of publication of this document and may differ materially from actual results for arange of factors, including conditions of Japanese and overseas economies, changes in the situation of operations in Japan and overseas,
and uncertainties and potential risks inherent in forward-looking statements. The risks and uncertainties include unforeseeable effects offuture events. The information on consolidated earnings forecasts and other future forecasts on page 4 of the Accompanying Materials
describes notes on the assumptions of the earnings forecasts and the use of the earnings forecasts.
A video (Japanese) of the briefing on earnings for the first three quarters for securities analysts and institutional investors will be madeavailable on demand on the Company's website.

MTI Ltd. (9438) Consolidated Financial Results for the First Three Quarters of Fiscal Year ending September 30, 2024

Accompanying materials – Contents
1. Qualitative information on financial results for the current quarterly settlement ....................................................2(1) Explanation on operating results .....................................................................................................................2(2) Explanation on financial position ...................................................................................................................3(3) Explanation of future forecast information including consolidated forecast ..................................................4
2. Quarterly Consolidated financial statements and important notes ......................................................................5(1) Quarterly consolidated balance sheet ...........................................................................................................5(2) Quarterly consolidated statement of income and quarterly consolidated statement ofcomprehensive income ..................................................................................................................................7(3) Notes concerning quarterly consolidated financial statements .......................................................................9(Notes concerning going concern assumption) ..............................................................................................9(Notes in the event of significant changes in shareholders’ equity) ...............................................................9(Segment information, etc.) ........................................................................................................................................ 9(Notes to the statements of cash flows) .................................................................................................................. 10(Significant subsequent events) ................................................................................................................................11

1

MTI Ltd. (9438) Consolidated Financial Results for the First Three Quarters of Fiscal Year ending September 30, 2024

1. Qualitative information on financial results for the current quarterly settlement(1) Explanation on operating results
Overview for the first three quarters of fiscal year ending September 30, 2024
(Period from October 1, 2023 to June 30, 2024)
The Group has been actively engaged in the healthcare business and the school DX business, both of which are
expected to expand in the future, in order to enhance its corporate value over the medium to long term.
Consolidated net sales were ¥20,536 million (up 2.0% year on year). The decrease due to the impact of spot video
sales Video Market Co., Ltd., a consolidated subsidiary, accounted in the same period of the previous fiscal year,
was offset by sales growth in the Healthcare Business and the DX Support Business for Corporate Customers,
resulting in a slight increase.
Gross profit increased to ¥15,093 million (up 10.6% year on year), reflecting a significant reduction in the cost of
sales due to the absence of non-recurring purchases of videos posted at Video Market Corporation in the year-ago
period and a decrease in loss-making DX support projects for corporate customers.
Operating income also increased significantly to ¥1,752 million (an operating loss of ¥17 million in the same
period of the previous year). This increase was due to the growth in gross profit and a reduction in selling, general,and administrative expenses, primarily resulting from a decrease in personnel and outsourcing expenses, despite
an increase in advertising expenses.
Ordinary income increased significantly to ¥2,363 million (an ordinary income of ¥151 million in the same periodof the previous year) due to the rise in operating income and a share of profit of entities accounted for using equity
method of ¥615 million (a profit of ¥78 million in the same period of the previous year), which was mainly due toextraordinary income posted at Shobunsha Holdings, Inc., an equity-method affiliate.
Profit attributable to owners of parent rose significantly to ¥2,243 million (up 353.0% year on year) due to theincrease in ordinary income, despite a year-on-year decrease in extraordinary income.
Consolidated business results(Period from October 1, 2023 to June 30, 2024)
First three quartersof the fiscal year ending
September 30, 2024

First three quartersof the fiscal year ended
September 30, 2023

Millions of yen

Millions of yen

Millions of yen%

Net sales

20,536

20,138+398+2.0

Cost of sales

5,443

6,495

(1,051)(16.2)

Gross profit

15,093

13,643+1,449

+10.6

SG&A

13,34013,661

(320)

(2.3)

Operating income

1,752

(17)

+1,770－Ordinary income

2,363

151

+2,211－

Profit attribute to owners of parent

2,243

495

+1,748+353.0First three quartersof the fiscal year ending
September 30, 2024

First three quartersof the fiscal year ended
September 30, 2023

Millions of yen

Millions of yen

Millions of yen%

13,34013,661

(320)

(2.3)

Advertising expense

2,012

1,569

+442

+28.2

Personnel expenses

5,409

5,904

(495)

(8.4)

Commission fee

2,135

2,223

(87)

(3.9)

Subcontract expenses

1,319

1,513

(194)

(12.8)

998

908

+89

+9.9

1,466

1,526

(60)

(4.0)

ChangeAmountPercentage

Breakdown of SG&A
(Period from October 1, 2023 to June 30, 2024)

Total

Depreciation
Other

2

ChangeAmountPercentage

MTI Ltd. (9438) Consolidated Financial Results for the First Three Quarters of Fiscal Year ending September 30, 2024

Operating results by segment are as follows.
① Content business
The content business includes B2C monthly billing services (excluding the “Luna-Luna” healthcare service forwomen and the “CARADA medica” health Q&A service in cooperation with healthcare professionals) and theB2B original comic distribution business that offers original comic content to comic distributors.
The number of monthly paid subscribers for this business was 3.07 million (down 60,000 from the end of
September 2023). The number of subscribers was nearly level, reflecting an increase in the number of paying
subscribers to the “AdGuard” security-related app.
Net sales totaled ¥12,629 million (down 8.6% year-on-year) due to the absence of non-recurring sales of videos
posted at Video Market Corporation, a consolidated subsidiary, in the same period of the previous year.
Operating income was ¥3,320 million (down 17.1% year-on-year) due to an increase in SG&A expenses
resulting from a rise in advertising expenses to promote “AdGuard” membership.
② Healthcare business
The healthcare business includes B2C monthly billing services under the “Luna-Luna” and “CARADA medica”
brands and B2B and B2B2C healthcare services for medical institutions and local governments, such as thecloud drug record service, the maternal health record book app and the childcare DX service.
The number of monthly paid subscribers for this business is now 510,000 (down 40,000 from the end of
September 2023). On the other hand, the number of pharmacies offering the cloud drug record service reached2,297 at the end of June 2024 (up 504 from the end of September 2023). This growth was driven by significant
efforts to expand the number of pharmacies implementing the service, resulting in a record-high quarterly
increase in the third quarter, reflecting the continued strong interest in adopting cloud drug record.
Net sales came to ¥4,023 million (up 19.1% year on year), given expanded sales of cloud drug record service
and childcare DX service. Operating income turned a profit and increased significantly to ¥279 million (posted
an operating loss of ¥233 million in the same period of the previous fiscal year) because of increased sales andimplemented cost containment measures.
③ School DX business
The school DX business includes school DX business developed for educational institutions by the consolidated
subsidiary Motivation Works Inc.
Net sales reached ¥885 million (up 52.3% year on year) due to an increase in monthly usage fees fromeducational institutions that have introduced the “BLEND” cloud-based school business support system.
“BLEND” has been used by 775 educational institutions since April 2024 (234 institutions more than a yearago). The operating loss significantly improved to ¥103 million (an operating loss of ¥569 million in the same
period of the previous fiscal year) because of turning a profit in the third quarter. This result comes from due tothe significant rise in net sales and a reduction in outsourcing expenses associated with a reduction indevelopment expense.
④ Other business
Other business includes the B2B AI business operated by Automagi Inc., a consolidated subsidiary, and thecorporate DX support business and solution business.
Net sales stood at ¥4,347 million (up 20.7% year on year) due to an increase in orders in the AI business andcorporate DX support business. Operating income turned a profit and increased significantly to ¥178 million(an operating loss of ¥1,220 million in the same previous fiscal year), primarily reflecting a reduction in cost of
sales due to a resolution of deficit project of the corporate DX support business.
(2) Explanation on financial position
At the end of the first three quarters under review, total assets increased ¥1,131 million from the end of
September 2023, to ¥30,287 million.
Current assets increased ¥1,109 million, mainly due to an increase in cash and deposits. Non-current assets
rose ¥22 million, chiefly due to an increase in investment securities, which more than offset a decrease ingoodwill and customer-related assets.
Current liabilities increased ¥197 million, mainly due to a rise in accounts payable and contract liabilities,
despite a decrease in unpaid corporate taxes. Non-current liabilities decreased ¥415 million chiefly due to a
decline in long-term borrowings.
Net assets increased ¥1,349 million, mainly reflecting the posting of ¥2,243 million as profit attributable toowners of parent although dividends paid.
3

MTI Ltd. (9438) Consolidated Financial Results for the First Three Quarters of Fiscal Year ending September 30, 2024

(3) Explanation of future forecast information including consolidated forecast
We will continuously work hard to expand sales and profit in the healthcare business, which is expected to be a
driving force for future performance growth. In the content business, it will make every effort to increase thenumber of paying subscribers by expanding sales of the “AdGuard” security-related app and striving to bolster
the original comic distribution business.
We will also focus on expanding the school DX business that Motivation Works Inc., a subsidiary of the Company,is actively working to develop. Having been given the large number of business inquiries related to “BLEND”,
the cloud-based school affairs support system provided by Motivation Works.
The healthcare business, which we have been engaged in over the medium- and long-term, has great future
growth potential, more than that of the B2C type. This business may move toward a more stable stock-typebusiness through the establishment of long-term business relationships with customers. Therefore, we will commit
to implementing a variety of measures to achieve sales growth.
Particularly, the cloud drug record service remains in high demand in dispensing pharmacies. That means we
consider it will be able to contribute to the sustained growth of sales in the healthcare business. Therefore, we willcontinue to try to increase the number of introducing stores through enhancing cooperation with Medipal Holdings
Corporation, our business partner.
We will also enhance childcare-related services with a focus on local governments that have already introduced
the “Boshimo”, a maternal health record book app, and will advance digital cooperation among local governments,
hospitals and clinics, and their residents, thereby advancing its “Boshimo” childcare DX platform strategy toenable the healthcare business to make a contribution to profit in the medium term.
[Assumptions for forecast values]
The impact of undetermined new businesses and low-probability mergers and acquisitions in the Group are nottaken into account and are not incorporated in the forecast figures. The Company will promptly disclose any
deviation between forecasts and results that should be disclosed.
Earnings forecast for the fiscal year ending September 30, 2024
(Period from October 1, 2023 to September 30, 2024)(Millions of yen)

YoY(%)Net sales

27,500+2.6

Operating income

2,200+637.2

Ordinary income

2,750+499.8

Profit attributable toowners of parent

2,400+218.6

4

MTI Ltd. (9438) Consolidated Financial Results for the First Three Quarters of Fiscal Year ending September 30, 2024

2.

Quarterly consolidated financial statements and important notes(1) Quarterly consolidated balance sheet（Unit: thousands of yen）
Previous fiscal year
(As of September 30, 2023)

The current first halfof the fiscal year
(As of June 30, 2024)

AssetsCurrent assets
Cash and deposits

13,720,915

14,617,351

Notes and accounts receivable-trade, and contract assets

4,197,136

4,183,168

Other

1,056,294

1,283,502

Allowance for doubtful accounts(33,941)(34,023)

18,940,404

20,049,998

213,711222,280

Software1,894,135

2,041,548

Goodwill

240,01266,518Customer-related assets

491,400

175,500

Other

230,614273,606

2,856,162

2,557,173

4,081,380

4,636,312

305,268

295,9392,658,854

2,476,149

Other

110,361

60,216

Allowance for doubtful accounts(10,704)(10,704)

Total investment and other assets

7,145,160

7,457,913

10,215,035

10,237,367

29,155,439

30,287,366

Total current assets
Non-current assets
Property, plant and equipment
Intangible assets

Total intangible assets
Investments and other assets
Investment securities
Leasehold and guarantee deposits
Deferred tax assets

Total non-current assets
Total assets

5

MTI Ltd. (9438) Consolidated Financial Results for the First Three Quarters of Fiscal Year ending September 30, 2024

(Unit: thousands of yen)Previous fiscal year
(As of September 30, 2023)

The current first halfof the fiscal year
(As of June 30, 2024)

Liabilities
Current liabilities
Account payable-trade

1,023,077

1,058,755

Current portion of long-term borrowings
Accounts payable-other,

747,600
1,279,759

737,940
1,726,514

Income taxes payable
Contract liabilities

637,6192,567,914

70,6183,117,210

Provision for bonuses
Other－1,074,790

207,137
609,928

Total current liabilities

7,330,762

7,528,105

Non-current liabilities
Long-term borrowings

2,431,250

1,878,125

Retirement benefit liability
Other

1,786,153
23,4491,886,187
61,479Total non-current liabilities

4,240,853

3,825,792

11,571,615

11,353,897

Shareholders' equity
Share capital

5,232,677

5,261,993

Capital surplus
Retained earnings

6,485,816
5,143,458

6,328,548
6,505,846

Treasury shares(3,230,813)(3,207,144)

Total shareholders' equity

13,631,139

14,889,244

Total liabilities
Net assets

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

165,132

160,540

Foreign currency translation adjustment
Remeasurements of defined benefit plans

97,84859,594116,430
54,690Total accumulated other comprehensive income

322,575

331,662

Subscription rights to shares
Non-controlling interests

59,1473,570,962

53,332
3,659,229

Total net assets

17,583,824

18,933,468

29,155,439

30,287,366

Total liabilities and net assets

6

MTI Ltd. (9438) Consolidated Financial Results for the First Three Quarters of Fiscal Year ending September 30, 2024

(2) Quarterly consolidated statements of income and quarterly consolidated statement of comprehensive
incomeQuarterly consolidated statement of income
For the first three quarters(Unit: thousands of yen)
For the first three quarters
For the first three quartersof the previous fiscal yearof the current fiscal year
(from Oct 1, 2022 to Jun 30, 2023) (from Oct 1, 2023 to Jun 30, 2024)

Net sales
Cost of sales

20,138,623
6,495,291

20,536,806
5,443,547

Gross profit

13,643,332

15,093,259

Selling, general and administrative expenses

13,661,078

13,340,975(17,746)

1,752,283

Operating income (loss)
Non-operating income
Interest income

72

69

Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity
methodOther

3,961
43,826

3,729
48,75378,045615,856

68,51912,040Total non-operating income

194,426

680,450

8,945

7,846

Other investment losses
Commission expenses

－
7,903

48,395

Other

8,154

Non-operating expenses
Interest expenses

Total non-operating expenses－
13,391

25,003

69,634

151,676

2,363,100

454

330

Gain on change in equity
Consumption taxes refund

237,588873,339－889,323

Total extraordinary income

1,111,382

889,654

Extraordinary losses
Loss on retirement of non-current assets

11,695

9,290

Impairment loss
Loss on sale of investment securities

10,546
13,45039,446

Loss on valuation of investment securities

7,148

Ordinary income
Extraordinary income
Gain on sale of non-current assets－
31,672

Total extraordinary losses

42,84180,409

Income before income taxes

1,220,217

3,172,344

Income taxes-current
Income taxes-deferred

740,064
80,969676,073
183,120

Total income taxes

821,033

859,193

Profit399,184

2,313,150

Profit (loss) attributable to non-controlling interests(96,108)

69,412

Profit attributable to owners of parent

495,293

2,243,737

7

MTI Ltd. (9438) Consolidated Financial Results for the First Three Quarters of Fiscal Year ending September 30, 2024

Quarterly consolidated statement of comprehensive income
For the first three quarters(Unit: thousands of yen)
For the first three quarters
For the first three quartersof the previous fiscal yearof the current fiscal year
(from Oct 1, 2022 to Jun 30, 2023) (from Oct 1, 2023 to Jun 30, 2024)

ProfitOther comprehensive income

399,184

2,313,150

Valuation difference on available-for-sale securities
Foreign currency translation adjustment, before tax

4,222
11,025

4,670
17,957

Remeasurements of defined benefit plans, before tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

2,023(4,903)52,619(8,636)69,8909,086

469,074

2,322,237

565,183

2,252,824(96,108)

69,412Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

8

MTI Ltd. (9438) Consolidated Financial Results for the First Three Quarters of Fiscal Year ending September 30, 2024

3) Notes concerning quarterly consolidated financial statements(Notes concerning going concern assumption)
Not applicable.
(Notes in the event of significant changes in shareholders’ equity)
Not applicable.
(Segment information, etc.)【Segment information】
Ⅰ First three quarters of previous fiscal year (period from October 1, 2022 to June 30, 2023)
1. Information on net sales, profit or loss for each reporting segment and revenue breakdown information
Reporting segment
Content
business

Healthcare
business

School DX
business

13,650,932

3,340,826

42,424

Revenue from contracts
with customers(Unit: thousands of yen)Amountreported on the
Adjustment
quarterly
amountconsolidated(Note)1
statement ofincome(Note)2

Otherbusiness

Total

549,583

2,075,311

19,616,654－

19,616,654

28,712

32,239418,593521,969－

521,969

13,693,356

3,369,539

581,8222,493,904

20,138,623－

20,138,623

Sales to outside customers

13,693,356

3,369,539

581,8222,493,904

20,138,623－

20,138,623

Internal sales between
segments or transfers

126,522

7,692－

1,106,850

1,241,066(1,241,066)

－

Total

13,819,879

3,377,232

581,8223,600,755

21,379,690(1,241,066)

20,138,623

4,005,241(233,708)(569,022)(1,220,395)

1,982,114(1,999,861)(17,746)

Net salesGoodsorservicestransferred at a point in
time
Goods
or
servicestransferred over time

Segment income (loss)(Note) 1. The segment income (loss) adjustment of ¥ (1,999,861) thousand includes the elimination of inter-segment transactions of¥(33,234) thousand and corporate expenses not allocated to each reporting segment of ¥ (1,966,627) thousand.
Corporate expenses are composed largely of general and administrative expenses not attributed to any reporting segment.
2. The segment income (loss) represents the result of adjustment to operating income reported on the quarterly consolidated
statement of income.

2. Information on impairment loss on non-current assets or goodwill and others for each reporting segment(Important impairment losses related to fixed assets)
Reporting segment
Content
business
Impairment loss－

Healthcare
business

School DX
business

1,992

－

9

Other
business
8,554

Total
10,546(Unit: thousands of yen)Amountreported on the
Adjustment
quarterly
amountconsolidated(Note)1
statement ofincome－10,546MTI Ltd. (9438) Consolidated Financial Results for the First Three Quarters of Fiscal Year ending September 30, 2024

Ⅱ First three quarters of current fiscal year (period from October 1, 20223 to June 30, 2024)
1. Information on net sales, profit or loss for each reporting segment and revenue breakdown information
Reporting segment
Content
business

Healthcare
business

School DX
business

12,459,879

3,985,408

55,113

Revenue from contracts
with customers(Unit: thousands of yen)Amountreported on the
Adjustment
quarterly
amountconsolidated(Note)1
statement ofincome(Note)2

Otherbusiness

Total

825,220

2,811,124

20,081,634－

20,081,634

31,47045,760322,828455,172－

455,172

12,514,993

4,016,878

870,980

3,133,953

20,536,806－

20,536,806

Sales to outside customers

12,514,993

4,016,878

870,980

3,133,953

20,536,806－

20,536,806

Internal sales between
segments or transfers

114,644

6,261

15,0001,213,345

1,349,251(1,349,251)

－

Total

12,629,638

4,023,139

885,980

4,347,299

21,886,057(1,349,251)

20,536,806

3,320,732

279,346(103,869)

178,485

3,674,695(1,922,411)

1,752,283

Net salesGoodsorservicestransferred at a point in
time
Goods
or
servicestransferred over time

Segment income (loss)(Note) 1. The segment income (loss) adjustment of ¥ (1,922,411) thousand includes the elimination of inter-segment transactions of¥(52,440) thousand and corporate expenses not allocated to each reporting segment of ¥ (1,966,627) thousand.
Corporate expenses are composed largely of general and administrative expenses not attributed to any reporting segment.
2. The segment income (loss) represents the result of adjustment to operating income reported on the quarterly consolidated
statement of income.

2. Information on impairment loss on non-current assets or goodwill and others for each reporting segment(Important impairment losses related to fixed assets)
Reporting segment
Content
business
Impairment loss

39,446

Healthcare
business

School DX
business

－

－

Other
business

Total－

39,446(Unit: thousands of yen)Amountreported on the
Adjustment
quarterly
amountconsolidated(Note)1
statement ofincome－39,446(Notes to the statements of cash flows)
The quarterly consolidated statement of cash flows for the current third quarter consolidated cumulative period
has not been prepared. Depreciation and amortization (including amortization of intangible fixed assets excluding
goodwill) and amortization of goodwill for the current third quarter consolidated cumulative period are as follows:
For the first three quarters
For the first three quartersof the previous fiscal yearof the current fiscal year
(from Oct 1, 2022 to Jun 30, 2023) (from Oct 1, 2023 to Jun 30, 2024)

Depreciation
Amortization of goodwill

10

1,034,429 thousand yen

1,121,687 thousand yen

204,360 thousand yen

137,911 thousand yen

MTI Ltd. (9438) Consolidated Financial Results for the First Three Quarters of Fiscal Year ending September 30, 2024

(Significant subsequent events)(Absorption-type merger of consolidated subsidiaries)
Our company, at the board of directors meeting held on July 19, 2024, resolved to merge our wholly owned
subsidiaries, MGSHD Ltd., SPSHD Ltd., and MT-App Ltd. (hereafter "MGSHD", "SPSHD", and "MT-App"), with
an effective date of September 1, 2024, and concluded a merger agreement on the same day.
1 Outline of Transaction(1) Name and business of the combined company
Name: MGSHD Ltd.
Business: Business in holding and managing securities, among other activities
Name: SPSHD Ltd.
Business: Business in holding and managing securities, among other activities
Name: MGSHD Ltd.
Business: Business in holding and managing securities, among other activities(2) Date of business combination
September 1, 2024
(3) Method of business combination
The merger will be conducted as an absorption-type merger where our company will be the surviving company,
and MGSHD, SPSHD, and MT-App will be the dissolved companies.
(4) Name of company after combination
MTI Ltd.
(5) Purpose of Business Combination
MGSHD, SPSHD, and MT-App are engaged in the holding and management of securities and other business
operations. However, it has been determined that integrating and managing these activities within our company
would be more efficient from a management cost perspective. Therefore, it has been decided to absorb these threecompanies into our corporation.
2 Overview of Planned Accounting Treatment
Based on the "Accounting Standard for Business Combinations" (Business Accounting Standard No. 21, January
16, 2019) and the "Guidance on Accounting Standard Application for Business Combinations and Business
Divestitures" (Business Accounting Standard Application Guidance No. 10, January 16, 2019), this transaction willbe treated as a transaction under common control.

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