UNOFFICIAL TRANSLATION
The formal official document is in Japanese.

Summary of Consolidated Financial Results for the First Half of
Fiscal Year ending September 30, 2024 (Japanese Accounting Standards)
May 9, 2024
Listed Company Name: MTI Ltd.
Listing Exchanges: Tokyo Stock Exchange
Securities Code:9438
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 to submit the Quarterly Securities Report (Shihanki Houkokusho): May 15, 2024
Scheduled date of dividend payment: June 14, 2024
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 six months ended March 31, 2024
(October 1, 2023 – March 31, 2024)(Percentages represent year-on-year changes)(1) Consolidated operating results (cumulative total)
Net sales

Operating income

Millions of yen

First half of fiscal year ending
September 30, 2024
First half of fiscal year ended
September 30, 2023
(Note) Comprehensive income:% Millions of yen

Profit attributable toowners of parent

Ordinary income% Millions of yen% Millions of yen%

13,517

(0.8)

1,052

–

1,518

711.3

1,558

–

13,631

5.1

(18)

–

187

(36.1)(326)–

Six months ended March 31, 2024: 1,650 millions of yen –%Six months ended March 31, 2023: (391) millions of yen –%Net income
Net income
per shareper share/diluted

First half of fiscal year ending
September 30, 2024
First half of fiscal year ended
September 30, 2023

Yen

Yen

28.41

28.41

(5.95)–(2) Consolidated financial position
Total assets

Equity ratio

Millions of yen%

29,15029,155

18,68017,58351.4
47.9

As of March 31, 2024
As of September 30, 2023
(Reference) Shareholders’ equity:

Net assets

Millions of yen

As of March 31, 2024: 14,973 millions of yen
As of September 30, 2023: 13,953 millions of yen

2. Dividends
End of firstquarterYen

End of second
quarter
Yen

Fiscal year ended September–
8.00
30, 2023
Fiscal year ending September 30,
–
8.00
2024
Fiscal year ending
September 30, 2024(forecast)(Note) Revisions to dividend forecasts published most recently: No

Dividend per share
End of third
quarterYear end

Annual

Yen

Yen

Yen

–

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
Millions of yen(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

Full year
27,000
0.8
1,800
503.2
2,250
390.8
(Note) Revisions to forecasts for consolidated business results published most recently: No

1,750

%

Yen

132.3

31.99

* 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):3/24:61,269,900 shares
9/23: 61,264,600 shares(ii) Number of treasury shares at the end of period
3/24: 6,358,273 shares
9/23: 6,405,973 shares(iii) Average number of shares during the period (quarterly consolidated cumulative period)
Six months ended 3/2024: 54,869,083 shares

Six months ended 3/2023: 54,820,844 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
based on information available to the Company at the time of publication of this document and may differ materially from actual
results for a range of factors, including conditions of Japanese and overseas economies, changes in the situation of operations inJapan and overseas, and uncertainties and potential risks inherent in forward-looking statements. The risks and uncertainties include
unforeseeable effects of future 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 half for securities analysts and institutional investors will be madeavailable on demand on the Company's website.

Accompanying materials – Contents
1. Qualitative information on financial results for the current 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 statement and important notes ............................................................................... 5(1) Quarterly consolidated balance sheet ................................................................................................................ 5(2) Quarterly consolidated statement of income and quarterly consolidated statementof comprehensive income ............................................................................................................................... 7(3) Quarterly consolidated statement of cash flows .............................................................................................. 9(4) Notes concerning quarterly consolidated financial statements ......................................................................11(Notes concerning going concern assumption) .............................................................................................11(Notes in the event of significant changes in shareholders’ equity) ..............................................................11(Segment information, etc.) ........................................................................................................................................ 11-1-

1. Qualitative information on financial results for the current settlement(1) Explanation on operating results
Overview of the first half ended March 31, 2024 (Period from October 1, 2023 to March 31, 2024)
The Group is 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.
During the first half under review, consolidated net sales stood at ¥13,517 million (down 0.8% year on year),chiefly 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. The decrease in sales was partially offset by increased sales
in the healthcare business and the corporate DX support business.
Gross profit came to ¥9,905 million (up 8.3% 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 yearago period and a decrease in loss-making DX support projects for corporate customers.
Operating income increased significantly to ¥1,052 million (compared to an operating loss of ¥18 million in
the same period of the previous year) due to the increase in gross profit and a reduction in selling, general andadministrative (SG&A) expenses mainly resulting from a decrease in personnel expenses and outsourcing
expenses.
Ordinary income increased significantly to ¥1,518 million (up 711.3% year on year) due to the rise in operating
income and a share of profit of entities accounted for using equity method of ¥510 million (compared to a shareof profit of entities accounted for using equity method of ¥174 million in the same period of the previous year),which was attributable to extraordinary income (gain on sale of non-current assets) posted at Shobunsha
Holdings, Inc., an equity-method affiliate.
Profit attributable to owners of parent rose significantly to ¥1,558 million (compared to a loss of ¥326 million
in the same period of the previous year), chiefly reflecting the increase in ordinary income and a significant
year-on-year increase in extraordinary income primarily due to a consumption tax refund.
Consolidated business results(Period from October 1, 2023 to March 31, 2024)
ChangeFirst half of the fiscal year
ending September 30, 2024

First half of the fiscal year
ending September 30, 2023

Millions of yen

Millions of yen

Millions of yen%

13,517

13,631

(113)

(0.8)

3,612

4,481

(868)

(19.4)

Gross profit

9,905

9,150

+755

+8.3

SG&A

8,852

9,168

(315)

(3.4)

Operating profit (loss)

1,052

(18)

+1,071－

Ordinary profit
Profit (loss)
attributable toowners of parent

1,518

187

+1,331+711.3

1,558

(326)

+1,884－

Net sales
Cost of sales

AmountPercentage

Breakdown of SG&A
(Period from October 1, 2023 to March 31, 2024)
ChangeFirst half of the fiscal year
ending September 30, 2024

First half of the fiscal year
ending September 30, 2023

Millions of yen

Millions of yen

Millions of yen

%

8,852

9,168

(315)

(3.4)

Advertising expenses

1,301

1,016

+284

+28.0

Personnel expenses

3,593

3,947

(354)

(9.0)

Commission fee

1,416

1,491

(75)

(5.1)

Subcontract expenses

909

1,059

(150)

(14.2)

Depreciation

652

591

+61

+10.4

Other

980

1,062

(81)

(7.7)

Total

-2-

AmountPercentage

Operating results by segment are as follows.
① Content business
The content business includes B2C monthly billing services (excluding the “Luna-Luna” healthcare service
for women and the “CARADA medica” health Q&A service in cooperation with healthcare professionals)
and the B2B original comic distribution business that offers original comic content to comic distributors.
This segment served 3.10 million of paying subscribers. The figure was 30 thousand smaller than at the endof September 2023. The number of paying subscribers was nearly level, reflecting an increase in the numberof paying subscribers to the “AdGuard” security-related app.
Net sales totaled ¥8,427 million (down 11.3% year on year) due to the absence of non-recurring sales ofvideos posted at Video Market Corporation, a consolidated subsidiary, in the same period of the previous
year.
Operating income was ¥2,261 million (down 19.1% 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 the cloud drug record service, the maternal health record book app and the childcare DX service.
This segment served 530 thousand of paying subscribers. The figure was 20 thousand smaller than at theend of September 2023. On the other hand, the number of pharmacies that offer the cloud drug record service
came to 2,090 at the end of March 2024 (up 297 from the end of September 2023), as the result of great
efforts focused on increasing the number of pharmacies whose motivation to introduce such service is
growing.
Net sales came to ¥2,615 million (up 19.1% year on year), given expanded sales of Cloud drug record
service and Childcare DX service, etc. Operating income significantly increased to ¥217 million (loss of ¥219
million in the same period of the previous fiscal year) because of increased sales and implemented 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 increased to ¥521 million (up 68.6% 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 541 educational institutions since April 2023 (201 institutions more than a yearago). The operating loss significantly decreased to ¥161 million (loss of ¥461 million in the same period of
the previous fiscal year) due to the significant rise in net sales and a reduction in outsourcing expenses
associated with a reduction in development 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 ¥2,756 million (up 14.0% year on year) due to an increase in orders in the AI businessand corporate DX support business. The operating loss significantly decreased to ¥31 million (loss of ¥807
million in the same previous fiscal year), primarily reflecting a reduction in cost of sales due to a resolutionof deficit project of the corporate DX support business.

(2) Explanation on financial position① Assets, liabilities and net assets
At the end of the first half under review, total assets decreased ¥5 million from the end of September 2023,
to ¥29,150 million.
Current assets decreased ¥145 million mainly due to a fall in cash and deposits. Non-current assets rose¥140 million chiefly due to an increase in investment securities, which more than offset a decrease ingoodwill and customer-related assets.
Current liabilities decreased ¥798 million, mainly reflecting falls in income taxes payable and contract
liabilities. Non-current liabilities fell ¥303 million chiefly due to a decline in long-term borrowings.
Net assets increased ¥1,096 million, mainly reflecting the posting of ¥1,558 million as profit attributableto owners of parent although dividends paid.

-3-② Consolidated cash flows
At the end of the first half of the fiscal year under review, cash and cash equivalents were ¥13,426 million,
down ¥294 million from the end of September 2023. Cash flow by activity and principal factors in the firsthalf under review are as follows:
Net cash provided by operating activities was ¥1,241 million (inflow of ¥2,105 million for the first half ofthe previous fiscal year). Principal factors included profit before income taxes.
Net cash used in investing activities resulted in an outflow ¥609 million (outflow of ¥616 million in thesame period of the previous fiscal year). Major factors included expenditure for the purchase of intangible
assets (mainly software).
Net cash used in financing activities resulted in an outflow ¥928 million (outflow of ¥798 million in thesame period of the previous fiscal year). The main factors included payments of dividends and repaymentsof long-term borrowings.
Net cash provided by(used in) operating
activities

Net cash provided by(used in) investing
activities

Net cash provided by(used in) financing
activities

Cash and cash
equivalents at end of
periodMillions of yen

Millions of yen

Millions of yen

Millions of yen

First half of the fiscal year ending
September 30, 2024

1,241

(609)

(928)

13,426First half of the fiscal year ending
September 30, 2023

2,105

(616)

(798)

12,763For the fiscal year ended
September 30, 2023

4,764

(1,349)(1,784)

13,720(3) Explanation of future forecast information including consolidated forecast
We will work hard to expand sales and turn a 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 the number ofpaying subscribers by expanding sales of the “AdGuard” security-related app and striving to bolster the original
comic distribution business.
Also, we will focus on expanding the school DX business that Motivation Works Inc., a subsidiary of theCompany, is actively working to develop. Given the large number of business inquiries related to “BLEND”,
the cloud-based school affairs support system provided by Motivation Works, and the number of schools
introduced since April 2024 has increased by 234 schools compared to April 2023, reaching a total of 775
schools.
The healthcare business, which we are focusing on the medium- and long-term, has great future growthpotential, compared to the B2C type, may move toward a more stable stock-type business through theestablishment of long-term business relationships with customers. Therefore, we will committed to
implementing a variety of measures to achieve sales growth.
Particularly, the cloud drug record service is in high demand in dispensing pharmacies, and we will increase
the number of introducing stores through enhancing cooperation with Medipal Holdings Corporation, ourbusiness partner. This is because it can contribute to the sustained growth of sales in the healthcare business.
It will also enhance childcare-related services with a focus on local governments that have 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

27,000+0.8

Operating income

1,800+503.2

Ordinary income

2,250+390.8

Profit attributable toowners of parent

1,750+132.3-4-

2. Quarterly consolidated financial statement 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 March 31, 2024)

AssetsCurrent assets
Cash and deposits

13,720,915

13,426,899

Notes and accounts receivable-trade, and contract assets

4,197,136

4,518,781

Other

1,056,294

883,585

Allowance for doubtful accounts(33,941)(34,158)

18,940,404

18,795,108

213,711

203,876

Software1,894,135

1,956,812

Goodwill

240,012

105,898

Customer-related assets

491,400

280,800

Other

230,614

258,834

2,856,162

2,602,344

4,081,380

4,593,511

305,268

297,9142,658,854

2,599,244

Other

110,361

68,949Allowance for doubtful accounts(10,704)(10,704)

Total investment and other assets

7,145,160

7,548,914

10,215,035

10,355,136

29,155,439

29,150,244

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-

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

Liabilities
Current liabilities
Account payable-trade
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Contract liabilities
Other

The current first halfof the fiscal year
(As of March 31, 2024)

1,023,077
747,600
1,279,759
637,6192,567,914
1,074,790

1,018,497
740,460
1,406,298
362,921
2,137,353
867,106

Total current liabilities

7,330,762

6,532,637

Non-current liabilities
Long-term borrowings
Retirement benefit liability
Other

2,431,250
1,786,153
23,4492,062,500
1,837,060
37,509Total non-current liabilities

4,240,853

3,937,069

Total liabilities

11,571,615

10,469,706

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares

5,232,677
6,485,816
5,143,458(3,230,813)

5,249,088
6,315,644
6,261,782(3,207,144)

13,631,139

14,619,371

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

Total shareholders' equity

165,132
97,84859,594

197,293
100,151
56,325

Total accumulated other comprehensive income

322,575

353,770

Subscription rights to shares
Non-controlling interests

59,1473,570,962

57,2253,650,171

Total net assets

17,583,824

18,680,537

29,155,439

29,150,244

Total liabilities and net assets-6-

（2） Quarterly consolidated statement of income and quarterly consolidated statementof comprehensive income
Quarterly consolidated statement of income
For the first half
(Unit: thousands of yen)
For the first halfof the previous fiscal year
(from October 1, 2022
to March 31, 2023)

For the first halfof the current fiscal year
(from October 1, 2023
to March 31, 2024)

Net sales
Cost of sales

13,631,385
4,481,114

13,517,857
3,612,580

Gross profit

9,150,271

9,905,277

Selling, general and administrative expenses

9,168,836

8,852,839

Operating profit (loss)(18,565)

1,052,437

52－

50
11,556

174,973

510,833

34,759Non-operating income
Interest income
Foreign exchange gains
Share of profit of entities accounted for using equity
methodCompensation income
Other

25,625－
9,613

Total non-operating income

235,409532,054

6,135
7,734
－
7,903
7,936

4,628
－
48,395－
13,266

29,71066,290187,134

1,518,201－
139,531－
139,531278

Non-operating expenses
Interest expenses
Foreign exchange losses
Other investment losses
Commission expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on change in equity
Consumption taxes refund
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Loss on sale of investment securities

4,105
10,546
13,450－786,107786,386

Loss on valuation of investment securities

7,148

8,049
39,446－
31,672

Total extraordinary losses

35,251

79,169

Income before income taxes

291,4142,225,418

Income taxes-current
Income taxes-deferred

703,393(10,956)

545,836
60,441

Total income taxes

692,436606,277

Profit (loss)(401,022)

1,619,140

Profit (loss) attributable to non-controlling interests(74,862)

60,354

Profit (loss) attributable to owners of parent(326,160)

1,558,786-7-

Quarterly consolidated statement of comprehensive income
For the first half
(Unit: thousands of yen)
For the first halfof the previous fiscal year
(from October 1, 2022
to March 31, 2023)

For the first halfof the current fiscal year
(from October 1, 2023
to March 31, 2024)

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income(401,022)

1,619,140(1,857)(24,879)
1,348

1,321
1,964
(3,268)35,34831,1779,960

31,194Comprehensive income(391,062)

1,650,335(Comprehensive income attributable to)Comprehensive income attributable to ownersof parent
Comprehensive income attributable to non-controllinginterests(316,199)

1,589,981(74,862)

60,354-8-

（3） Quarterly consolidated statement of cash flows
For the first half ofthe previous fiscal year
(from October 1, 2022
to March 31, 2023)
Cash flows from operating activities
Income before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity
methodLoss (gain) on change in equity
Loss (gain) on sale of property, plant and equipment
Loss on retirement of non-current assets
Loss (gain) on valuation of investment securities
Loss (gain) on sale of investment securities
Decrease (increase) in trade receivables
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Increase/decrease in consumption taxes payable/consumption
taxes refund receivable
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes refund (paid)(Unit: thousands of yen)
For the first half ofthe current fiscal year
(from October 1, 2023
to March 31, 2024)

291,414672,354
10,546
136,177(1,282)
74,142(52)
6,135

2,225,418
732,11139,446
98,532
216
50,906(50)
4,628(174,973)(510,833)(139,531)
－
4,105
7,148
13,450(222,549)
48,174(51,997)

－
(278)
8,049
31,672－(321,209)(4,946)123,672

1,057,174(100,597)(74,319)(333,997)

1,656,119

2,042,742

52(6,135)455,91150(4,628)(796,606)

Net cash provided by (used in) operating activities

2,105,948

1,241,557

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of investment securities
Other, net(36,079)－(583,419)
1,504
1,629

(25,066)278(586,157)－
1,718

Net cash provided by (used in) investing activities(616,364)(609,226)-9-

For the first half ofthe previous fiscal year
(from October 1, 2022
to March 31, 2023)
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares
Proceeds from share issuance to non-controlling shareholders
Dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting in change inscope of consolidation
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents(Unit: thousands of yen)
For the first half ofthe current fiscal year
(from October 1, 2023
to March 31, 2024)

60,000(50,975)(375,890)
27,132(2,940)(440,095)(2,940)－－(375,890)
32,149(980)(440,462)(980)(12,500)(142,100)(798,208)(928,263)(25,385)

1,916

665,988(294,016)

Cash and cash equivalents at beginning of period

12,097,658

13,720,915

Cash and cash equivalents at end of period

12,763,647

13,426,899- 10 -

4) 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 half of previous fiscal year (period from October 1, 2022 to March 31, 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

9,371,278

2,165,938

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

309,264

1,368,068

13,214,550－

13,214,550

24,212－

350,197

416,834－

416,834

9,413,703

2,190,151

309,264

1,718,266

13,631,385－

13,631,385

Sales to outside customers

9,413,703

2,190,151

309,264

1,718,266

13,631,385－

13,631,385

Internal sales between
segments or transfers

88,987

5,431－

698,911

793,330(793,330)

－

Total

9,502,690

2,195,582

309,264

2,417,178

14,424,715(793,330)

13,631,385

2,794,644(219,897)(461,465)(807,100)

1,306,180(1,324,745)(18,565)

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

Segment income (loss)(Note) 1. The segment income (loss) adjustment of ¥ (1,324,745) thousand includes the elimination of inter-segment transactionsof ¥9,178 thousand and corporate expenses not allocated to each reporting segment of ¥(1,333,924) 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 (loss) reported on the quarterly
consolidated statement of income.

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

Healthcare
business

School DX
business

1,992－- 11 -

Other
business
8,554

Total

10,546(Unit: thousands of yen)Amountreported on the
Adjustment
quarterly
amountconsolidated(Note)1
statement ofincome(Note)2－

10,546

Ⅱ First half of previous fiscal year (period from October 1, 2023 to March 31, 2024)
1. Information on net sales, profit or loss for each reporting segment and revenue breakdown information(Unit: thousands of yen)Amountreported on the
Adjustment
quarterly
amountconsolidated(Note)1
statement ofincome(Note)2

Reporting segment
Content
business

Healthcare
business

School DX
business

Otherbusiness

Total

8,314,600

2,582,798

475,666

1,819,084

13,191,150－

13,195,150

36,36324,99945,760215,583

322,707－322,707

Revenue from contracts
with customers

8,350,964

2,610,798

521,426

2,034,668

13,517,857－

13,517,857

Sales to outside customers

8,350,964

2,610,798

521,426

2,034,668

13,517,857－

13,517,857

Internal sales between
segments or transfers

76,492

4,481－

721,740

802,714(802,714)

－

Total

8,427,456

2,615,279

521,426

2,756,408

14,320,571(802,714)

13,517,857

2,261,485

217,397(161,508)(31,865)

2,285,508(1,233,071)

1,052,437

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

Segment income (loss)(Note) 1. The segment income (loss) adjustment of ¥(1,233,071) thousand includes the elimination of inter-segment transactionsof ¥3,826 thousand and corporate expenses not allocated to each reporting segment of ¥(1,236,897) 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 (loss) reported on the quarterly
consolidated statement of income.

2. Information on impairment loss or goodwill and others on non-current assets for each reporting segment(Important impairment losses related to fixed assets)(Unit: thousands of yen)Amountreported on the
Adjustment
quarterly
amountconsolidated(Note)1
statement ofincome(Note)2

Reporting segment
Content
business
Impairment loss

39,446

Healthcare
business

School DX
business－－- 12 -

Other
business
－

Total

－

－

39,446