Financial Results Briefing
Material for Q2 FY2024
May 10, 2024
Securities Code︓9438
This report contains forward-looking statements on businessperformance 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
or overseas economic conditions or changes in internal orexternal business environments or aspects of uncertainty
contained in the forecasts, latent risks or various other factors.
In addition, risk and uncertainty factors include unpredictableelements that could arise from future events.

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Contents
Financial Results Overview
for Q2 FY2024… P2

Image of medium-term profit … P31

Financial highlight
Consolidated P/LConsolidated SG&A
Difference between earning forecast and the actual for H1

Appendix …P34

Revision of Full-Year earning forecasts
Performance by segment

Approach for the 2 nd half and beyond … P19
Basic policies and priority issues for FY2024
Cloud drug record service
Maternal health record book app + Childcare DX services
School DX business

Consolidated B/SConsolidated P/LConsolidated SG&A
Business of segment
Earnings forecast for FY2024
The list of main healthcare services
Overview of healthcare services
Cloud drug record service
Maternal health record book app + Childcare DX services
School DX business

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1Financial Results Overview for Q2 FY2024

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Financial highlight
１

Q2 Results
YoY

Change fromthe latest forecast¥13,517 million(113) million+517 million

Operating income︓¥1,052 million+1,071 million+452 million

Profit attributable toowners of parent︓¥1,558 million+1,884 million+318 million

Net sales and income were both higher than the forecast.

Net sales︓

2

Revision of Full-year earning forecast upward
Net sales︓

3

Change fromthe latest forecast¥27,000 million

Maintained

Operating income︓¥1,800 million+800 million

Profit attributable toowners of parent︓¥1,750 million+410 million

Q2 Achievements and initiatives
・Healthcare business︓Cloud drug record service and Childcare DX services performing well・School DX business︓ The number of schools introduced in April 2024 was 255Copyrights (c) 2024 MTI Ltd. All Right Reserved3Consolidated P/L
Net sales : levelling off
Operating income, ordinary income, profit : substantial increased（ Unit︓Mil yen ）FY2023Q2

FY2024
Q2

YoY
AmountPercentage

13,631

13,517(113)(0.8)%

Cost of sales

4,481

3,612(868)(19.4)%

ratio

32.9%

26.7%

Gross profit

9,150

9,905

+755

+8.3%

ratio

67.1%

73.3%

SG&A

9,168

8,852(315)(3.4)%

ratio

67.2%

65.5%

(18)

1,052-%

7.8%

187

1,518

ratio

(1.4)%

11.2%

Profit attributable toowners of parent(326)1,558-%

11.5%

Net sales

Operating income
ratio

Ordinary income

ratio+1,071-%+1,331+711.3%+1,884-%

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The same period of previous year:
739million Yen: Posting of spot sales ofthe video-streaming service
・ Loss-making projects in the DX support
business for companies have wound
down
・The same period of previous year:
649million Yen :Posting of spot cost ofsales of the video-streaming service
Decrease in personnel and development
costs
Increase in equity method investment
income (+335million yen)Consumption taxes refund(+786 million yen)4Consolidated SG&A
Advertising expenses: increased
Personnel expenses: exclusion of subsidiary from consolidation
Development costs: improved development costs for the school DX business（ Unit︓Mil yen ）SG&A

FY2023Q29,168

FY2024
Q2
8,852

YoYAmount(315)

Percentage(3.4)%

Advertising expenses

1,016

1,301+284+28.0%

Personnel expenses

3,947

3,593(354)(9.0)%

Commission fee

1,491

1,416(75)(5.1)%

Subcontract expenses1,059909(150)(14.2)%

591652+61+10.4%

1,062980(81)(7.7)%

Depreciation
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Increase in sales promotion
costs for AdGuard
Exclusion of subsidiaries fromconsolidation

Improved development costs(School DX business)5Difference between earning forecast and the actual for H1
All exceeded expectations
FY2024First-Half（ Unit︓Mil yen ）（latest forecast）

FY2024First-Half（actual）

Difference(million yen)（%）

13,00013,517+517

4.0%

Operating income600

1,052+452+75.4%Ordinary income

1,000

1,518+518+51.8%

Profit attributable toowners of parent

1,240

1,558+318+25.7%

Net sales

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Revision of earning forecast of FY2024
Operating income, ordinary income and profit for the period have been revised upward
FY2024Full-Year（ Unit︓Mil yen ）（latest forecast）

FY2024Full-Year（actual）

Difference(million yen)（%）

27,00027,000--Operating income

1,000

1,800+800+80.0%

Ordinary income

1,400

2,250+850+60.7%

Profit attributable toowners of parent

1,340

1,750+410+30.6%Net sales

Copyrights (c) 2024 MTI Ltd. All Right Reserved7Performance by segment

ContentBusiness・Content service(Entertainment & Life content)

・Original comics service

Security

HealthcareBusiness・Healthcare service forwomen
・Childcare DX service
・Cloud drug record service
・Online consultation
service, etc.

School DXBusiness・School DX service

OtherBusiness・AI business・DX support businessfor companies
・Solution service forcorporate

comic

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Content business : Net sales and operating income
QoQ（Unit︓Mil yen）
5,100
4,639

4,4364,342

5,118

※1

※2

4,384

4,317

4,289

4,210

4,216

Levelled off net sales

The number of paying subscribers
remained almost unchanged.
QoQ

Levelled off operating income
Increased in advertising expenses

2,014
1,534

※1 1,439

1,322 1,328

1,355

1,210 1,218 1,091 1,169

Special factors

1Q

2Q

3Q

4Q

1Q

FY2022

2Q

3Q

FY2023
Net sales

Operating income

4Q

1Q

2Q

FY2024*1︓Net sales & Operating income 717 million yen:
Change in treatment of consumption tax in monthly
content services that award points.
*2︓Net sales 739 million yen:
Posting of spot sales of the video-streaming service.

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Content business : The number of paying subscribers

Total paying subscribers

3.63 million subscribers
5.00

4.81

4.25 4.08

4.67 4.59

4.48 4.38

3.96 3.88 3.78

4.23 4.16

3.69 3.57

3.52

3.95 3.89

3.80 3.79 3.76 3.73 3.69

3.33 3.27 3.20 3.20

Total paying subscribers

3.68 3.63 3.63

Flat・Brisk Security-related app

3.18 3.16 3.14 3.13 3.09 3.10

0.75 0.73 0.71 0.71 0.70 0.69 0.66 0.64 0.62 0.62 0.60 0.59 0.58 0.57 0.55 0.55 0.540.53

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FY2020

FY2021

Healthcare business

FY2022

FY2023

FY2024

Content business

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Content business: Security-related app

The security-relatedapp continues toperform well

Total paying subscribers

Total paying subscribers

780 thousand subscribers
Four functions

Ad blocking
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FY2020

FY2021

FY2022

FY2023

Trace blocking

Threat blocking

Parent function（Child protectionfunction）

FY2024

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Content business: Original comics content businessNet sales

Original comics content businessStable trend
・Keep in comic titles introduced
・ Reactionary decline after TV dramatization

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FY2020

FY2021

FY2022

FY2023

FY2024

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12Healthcare business: Net sales and operating income（Unit︓Mil yen）

908

977

1,031

1,113

1,184

1,181

1,260

1,239

1,355

1,011

QoQ

Net sales growth
QoQ

112

104

9(336)

(311)

1Q

2Q

(250)

3Q

(172)

(209)

4Q

・Brisk Cloud drug record service
・Brisk Childcare DX service

(13)

(46)

1Q

FY2022

2Q

3Q

FY2023
Net sales

4Q

Operating income ison a positive trend

1Q

2Q

FY2024

Operating income
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13Healthcare business: Monthly content service

Total paying subscribers(LunaLuna, CARADA medica)

0.53 million subscribersMonthly subscription content service
Total paying subscribers

0.75 0.73

1Q

2Q

Levelled off
0.71 0.71 0.70 0.69

3Q

FY20204Q

1Q

2Q

0.66 0.64

3Q

FY2021

4Q

0.62 0.62 0.60

1Q

2Q

3Q

FY20220.59 0.58 0.57

4Q

1Q

2Q

0.55 0.55 0.54 0.53

3Q

FY2023

4Q

1Q

2Q

FY2024

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Healthcare business: Cloud drug record service

2,090

+167
2,090

pharmacies
introduced

1,923
1,793
1,639
1,532573
28564357864

Total introduced pharmacies

Steady expansion

1,382
1,264765

Cloud drug record service

1,096
978633451

163

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q
FY2020

FY2021

FY2022

FY2023

FY2024

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School DX business: Net sales and operating income
Increased
revenue at thestart of theschool year
272

270

260

260

（Unit︓Mil yen）
150
55

(121)

154

155

Levelled off net sales

153

65

Expansion in sales compared to thesame period last year
(107)

(111)

(246)

1Q

2Q

QoQ

(302)

(305)

3Q4Q

1Q

FY2022

(79)

2Q

QoQ

Operating deficit unchanged

(214)

3Q

FY2023

Net sales(99) (82)

4Q

1Q

2Q

Significant reduction in losses comparedto the same period last year

FY2024

Operating income

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School DX business: Cloud-based school affairs support system

Total introduced schools
775

541

Private high school share

340

expanded to 35%

114

2021年4⽉
April,
2021

2022年4⽉
April, 2022

The number of schools
introducing our services
is progressing well

2023年4⽉
April, 2023

2024年4⽉
April, 2024
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17Other business (Includes DX support business for companies, AI):Net sales and operating income（Unit︓Mil yen）

1,473
1,261 1,277

1,205

1,102

1,282

1,190 1,227 1,183 1,221

QoQ

Net sales growthOrders in the corporate DX support business increased
55

(36)

1Q

(140)

2Q

(178)

(251)

3Q

(397)

(393)

(413)

(413)

4Q

1Q

2Q

3Q

FY2022

FY2023

Net sales

QoQ

Operating loss eliminated(87)

Orders in the corporate DX support business increased
4Q

1Q

2Q

FY2024

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18Approach for the 2 nd half and beyond

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19Basic policies and priority issues for FY2024

Further sales growth

１. Healthcare business・ Further expansion of the Cloud drug record service

２. School DX business

Further sales growth

3. Content business・ Promotion of the platform strategy of the childcare DX, "Boshimo"

・Expansion of the number of introduced schools

Securing profit

・ Original comics content business growth・ Security-related app growth

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20Healthcare business: Cloud drug record service

Connecting pharmacies and patients

Cloud drug record service

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Healthcare business: Cloud drug record service

Continuing to strengthen cooperation in sales and toreinforce function development
1. Continuing to strengthen cooperation in sales•

Collaboration with a major prescription pharmaceutical wholesaler

2. Continuing to strengthen function development for differentiation•Connecting the drug histories possessed by different pharmacies•Home care and nursing functions•

Additive Logic, Guidance Navigation•

Planning to add electronic prescriptions and other functions as needed
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Healthcare business:
Maternal and child health handbook app + Childcare DX services
Connecting parenting households and municipalities & hospital

Maternal and child health handbook app+ Childcare DX services

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Healthcare business:
Maternal and child health handbook app + Childcare DX services"Childcare support" is a social issue

Delay in digitalization for childcare support
Paper-based procedures

Extremely inefficient

Guardian

Municipal

Childcare-related
procedures

Digitalization isa pressing issue

Immunization facilities✔

Parents forced to visit the office with small children, long waiting times✔

Parents asked to enter the same things every time in questionnaires✔

Much paperwork is written by hand, and specifications vary between municipalities
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24Healthcare business:
Maternal and child health handbook app + Childcare DX services

Childcare DX services
・ Questionnaire and reservation
form functionality
・ Childhood immunizations(Digital preliminary examination slip , etc.)

・ Infant health checkup
・ Visits to all households with infants
・ Pregnancy checkups andpregnancy notification

Functions

Digitalization of municipal services
and cooperation with medical
institutions in the childcare field
Effects

Municipal
Data linkage
Data linkage

e.g. : Infant healthcheckup service

Reducing the burden on parents,municipalities, and medical
institutions through data linkage
Values“Boshimo” app

Guardian
Data linkage

Immunization
facilities
Health checkvenue

Promoting municipal childcare
DX and improving the local
childcare environment

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Healthcare business:
Maternal and child health handbook app + Childcare DX services
Accelerated introduction of childcare DX services at municipalities using “Boshimo”
Phase1

Phase2Phase3

Maternal and childhealth handbook app

Online consultation

Childcare DX services

94

163

606

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
3Q
4Q
1Q
2Q

Tailwind for the“Accompanying SupportProgram”*

FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023 FY2024

4Q1Q

FY20202Q

3Q

FY2021

4Q

1Q

2Q

3Q

FY2022

4Q

1Q

2Q

3Q

FY2023

4Q

1Q

2Q

FY2024

1Q

2Q

3Q

FY2022

4Q

1Q

2Q

3Q

FY2023

4Q

1Q

2Q

FY2024* Transferred to “Children and Families Agency” from April 1,2023 .
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School DX business

Motivation Works Inc.

Connecting students and teachers

Full-cloud school affairs support system

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School DX business︓Full-cloud school affairs support system

Motivation Works Inc.

Serious problems in schoolsExcessive teacher overtime andincreased resignations
Traditional school affairs

Excessive workload
and inefficiency

Shifting all schoolaffairs to the cloudis a pressing issue✔

Using multiple systems: management cost burden✔

Varying specifications, handwritten and PC-based admin: work-time burden✔

Data linkage is time consuming

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School DX business︓Full-cloud school affairs support system

Motivation Works Inc.

A world with

FunctionsEliminating all negatives

・ Fully cloud-based centralized management of data
・ Data linkage without returning to the staff room
・ Data linkage with parents and guardians

Teachers-only
functions

Effects

General Public
Functions・ Reduced workload for school affairs
・ Reduced system management costs
ValuesTeachersʼ terminal

Studentsʼ terminal

Parental
Cooperation

Create an environment that enables
concentration on essential education
through the provision of school DX services

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School DX business︓Full-cloud school affairs support system

Image of medium-term profit

PlannedMotivation Works Inc.

Continued increase in the numberof schools introducing DXGrowthopportunities

・Accumulation of projects expected to be
introduced in April 2025
・Government driving DX for school affair
in prefectural areas
Differentiation
FY2021 FY2022 FY2023 FY2024 FY2025 FY2026

Cloud-based batch services

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Our Group

Healthcare business（by segment）

Focus on expansion of stock sales (=profit)

Content business

School DX business

Sharp growth in a short period of time

Other business(Includes DX support business forcompanies, AI)

Factors affecting profit
Healthcare business

School DX businessGovernment promotion of digitalization / DX in mother and child health information(Improving the childcare environment is a pressing issue )⇒ Accelerated introduction of digital maternal and child health handbook and childcare DX
Government driving DX for school affair in prefectural areas(Improving efficiency in school administration is a pressing issue)⇒ Accelerated introduction of full-cloud school affairs support systems
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〈Contact us〉
Investor Relations Officee-mail: ir@mti.co.jp
https://ir.mti.co.jp/eng/

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