Financial Results Briefing
Material for Q3 FY2024
August 7, 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.

Copyrights (c) 2024 MTI Ltd. All Right Reserved

Contents
Financial Results Overview
for Q3 FY2024… P2

Image of medium-term profit … P27

Financial highlight
Consolidated P/LConsolidated SG&A
Revision of Full-Year earning forecasts

Appendix …P30

Performance by segment

Future Approach… P18

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

Copyrights (c) 2024 MTI Ltd. All Right Reserved

1Financial Results Overview for Q3 FY2024

Copyrights (c) 2024 MTI Ltd. All Right Reserved

2

Financial highlight１

Q3 Results Flat net sales, substantial increase in profits
YoY

Net sales：2¥20,536 million+398 million+2.0%

Operating income：¥1,752 million+1,770 million-%

Profit attributable toowners of parent：¥2,243 million+1,748 million+353.0%

Revision of Full-year earning forecast upward
Net sales：

3Percentage change

Change fromthe latest forecast¥27,500 million+500 million

Operating income：¥2,200 million+400 million

Profit attributable toowners of parent：¥2,400 million+650 million

Approach and performance for Q3・Healthcare business：Cloud drug record service is performing well
(Record number of pharmacies that introduced the service )・School DX business： The number of schools introduced in April 2024 led to not only an increasein sales but also a shift to profitability.
Copyrights (c) 2024 MTI Ltd. All Right Reserved3Consolidated P/L
Net sales: Flat
Operating income, ordinary income, profit : Substantial increased（ Unit：Mil yen ）FY2023Q3

FY2024
Q3

YoY
AmountPercentage

20,13820,536

+398

+2.0%

Cost of sales

6,495

5,443

(1,051)(16.2)%

ratio

32.3%

26.5%

13,64315,093+1,449+10.6%

ratio

67.7%

73.5%

SG&A

13,661

13,340(320)(2.3)%

ratio

67.8%

65.0%

(17)

1,752

(0.1)%

8.5%

Ordinary income

151

2,363

ratio

0.8%

11.5%

Profit attributable toowners of parent495

2,243

ratio

2.5%

10.9%

Net sales

Gross profit

Operating income
ratio+1,770-%+2,211-%+1,748+353.0%

Copyrights (c) 2024 MTI Ltd. All Right Reserved

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 (+537million 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

FY2023
Q3
13,661

FY2024
Q3
13,340

YoY
Amount(320)Percentage(2.3)%

Advertising expenses

1,569

2,012+442+28.2%

Personnel expenses

5,904

5,409(495)(8.4)%

Commission fee

2,223

2,135(87)(3.9)%

Subcontract expenses

1,513

1,319(194)(12.8)%

924998+89+9.9%

1,526

1,466(60)(4.0)%

Depreciation
Other

Copyrights (c) 2024 MTI Ltd. All Right Reserved

Increase in sales promotion
costs for AdGuard

Exclusion of subsidiaries fromconsolidation

Improve development costs(School DX business)

5

Revision of earning forecast of FY2024
All forecasts revised upward（ Unit：Mil yen ）FY2024Full-YearFY2024Full-Year（latest forecast）（actual）

Difference(million yen)（%）

27,00027,500+500+1.9%

Operating income

1,800

2,200+400+22.2%

Ordinary income

2,250

2,750+500+22.2%

Profit attributable toowners of parent

1,750

2,400+650+37.1%

Net sales

Copyrights (c) 2024 MTI Ltd. All Right Reserved

6Performance by segment

ContentBusiness・Content service
・Entertainment & Life
・Security-related

・Original comics service

Security

Healthcare
Business
・Healthcare service for
women
・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

Copyrights (c) 2024 MTI Ltd. All Right Reserved

7

Content business : Net sales and operating income
QoQ（Unit：Mil yen）
5,100 5,118
4,639

4,436 4,342※2※1

4,384 4,317 4,289

4,210 4,216 4,202

Net sales: Flat
The number of paying subscribers
remained almost unchanged.
QoQ

Operating income: Flat
Increased in advertising expenses

2,014
1,534

1Q

※1 1,439

1,322 1,328

2Q

3Q

4Q

1Q

FY2022

1,355

2Q

1,210 1,218 1,091 1,169 1,059

3Q

4Q

FY2023
Net sales

Operating income

1Q

2Q
FY2024

3Q

Special factors*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.

Copyrights (c) 2024 MTI Ltd. All Right Reserved

8

Content business : The number of paying subscribers

Total paying subscribers

3.58 million subscribers
5.00

4.81

4.67 4.59

4.48

4.38

4.23 4.16

3.95 3.89

3.80 3.79 3.76 3.73

Total paying subscribers

Flat3.69 3.68 3.63 3.63

3.58

Brisk Security-related app
4.25

4.08 3.96

3.88 3.78

3.69 3.57

3.52

3.33 3.27 3.20 3.20

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

3.070.55 0.55 0.54 0.53 0.51

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

FY2021

FY2022

Healthcare business

FY2023

FY2024

Content business

Copyrights (c) 2024 MTI Ltd. All Right Reserved9

Content business: Security-related app

The security-related app
continues to perform well

Total paying subscribers

Total paying subscribers

850 thousand subscribers
Four functions

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

FY2021

FY2022

FY2023

Trace blocking

Threat blocking

Parent function（Child protectionfunction）

FY2024

Copyrights (c) 2024 MTI Ltd. All Right Reserved

10

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 3Q
FY2020

FY2021

FY2022

FY2023

FY2024

Copyrights (c) 2024 MTI Ltd. All Right Reserved

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

908

977

1,031

1,184 1,181

1,113

1,239 1,260

1,355

1,011

104

91Q

2Q

Operating income:On a positive trend
61

(13)

(46)
(311)

Net sales: growthQoQ

112(336)

1,407

QoQ

・Brisk Cloud drug record service(172)(250) (209)

3Q

4Q

1Q

FY20222Q

3Q

4Q

FY2023
Net sales

1Q

2Q

3Q

FY2024

Operating income

Copyrights (c) 2024 MTI Ltd. All Right Reserved

12Healthcare business: Monthly content service

Total paying subscribers(LunaLuna, CARADA medica)

0.51 million subscribers

Monthly subscription content service
Total paying subscribers

Levelled off
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 0.54 0.53

0.51

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

FY2021

FY2022

FY2023

FY2024

Copyrights (c) 2024 MTI Ltd. All Right Reserved

13Healthcare business: Cloud drug record service

2,297+207

pharmacies
introduced

2,297

2,090
1,923
1,793

Total introduced pharmacies

1,639
1,532

Steady expansion

1,382
1,264

64

Cloud drug record service

1,096
978864765633573
451357285
163

Record high on a quarterly basis

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

FY2021

FY2022

FY2023

FY2024

Copyrights (c) 2024 MTI Ltd. All Right Reserved

14

School DX business: Net sales and operating income
Increased revenue
at the start of theschool year

（Unit：Mil yen）

364
272
150
55

154

155270260

QoQ260Net sales: Expansion

1536557QoQ
Up-front investment(121)(107) (99) (82)

(79)

3Q

2Q

(111)

(246)

Operating income:Returning to profit(214)(302) (305)
1Q

2Q

3Q

4Q

1Q

FY2022

2Q

4Q

FY2023

Net sales

1Q

FY2024

3Q

Significant reduction in losses comparedto the same period last year

Operating income

Copyrights (c) 2024 MTI Ltd. All Right Reserved

15

School DX business: Cloud-based school affairs support system

Total introduced schools
775

541

The number of schools
introducing our services
is progressing wellPrivate high school share

340

expanded to 35%114April,

2021年4月
2021

April,

2022
2022年4月

April,

2023
2023年4月

April,

2024
2024年4月
Copyrights (c) 2024 MTI Ltd. All Right Reserved

16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

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

1,590

QoQ

1,282

Net sales: GrowthOrders in the corporate DX support business increased
210
55(36)

(140)

(178)

(251)

QoQ

Operating income:On a positive trend(87)(397) (393) (413) (413)

Orders in the corporate DX support business increased
1Q

2Q

3Q

4Q

1Q

FY20222Q

3Q

4Q

FY2023

Net sales

1Q

2Q

3Q

FY2024

Operating income

Copyrights (c) 2024 MTI Ltd. All Right Reserved

17Future Approach

Copyrights (c) 2024 MTI Ltd. All Right Reserved

18Basic policies and priority issues for FY2024

１. Healthcare business

Further sales growth・ Further expansion of the Cloud drug record service

・ Promotion of the platform strategy of the childcare DX, "Boshimo"

２. School DX business

Further sales growth・Expansion of the number of introduced schools

3. Content businessSecuring profit
・ Original comics content business growth・ Security-related app growth

Copyrights (c) 2024 MTI Ltd. All Right Reserved

19

Healthcare business: Future approach
Connecting pharmacies and patients

Cloud drug record service

Connecting parenting households
and municipalities & hospital
Maternal and child health handbook app+Childcare DX services

B2B service for pharmacy

B2BtoC service for municipalities

Copyrights (c) 2024 MTI Ltd. All Right Reserved

20Healthcare business: Cloud drug record service

New functional services
the automatic summary function has been well received
To further improve operational efficiency

Medication guidance navigation

Automatically extracts
necessary items forthe medical record＋AI automatic summarization feature
Other functions
・Connecting the drug histories possessed by different pharmacies
・ Additive Logic

・ Home care and nursing functions
・ Planning to add electronic prescriptions and other functions as needed● Continuing to strengthen cooperation in sales ●Collaboration with a major prescription pharmaceutical wholesaler

Copyrights (c) 2024 MTI Ltd. All Right Reserved* “corte” was jointly developed by our subsidiary
Solamichi System Inc. and by corte Inc.
* "Corte" is a registered trademark of Corte Inc.

21

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

Introduction smoothly:
the childcare DX services at municipalities using “Boshimo”
Phase2Phase3

Online consultation

Childcare DX services

85

171

Phase1

Maternal and childhealth handbook app

629

Tailwind for the“Accompanying SupportProgram”*1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q
FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023 FY2024

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

FY2021

FY2022

FY2023

FY2024

1Q

2Q

3Q

FY2022

4Q

1Q

2Q

3Q

FY2023

4Q

1Q

2Q

3Q

FY2024* Transferred to “Children and Families Agency” from April 1,2023 .
Copyrights (c) 2024 MTI Ltd. All Right Reserved

22

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 and cooperationof municipal services with medical
institutions in the childcare field
Effects

Municipal
Data linkage
Data linkagee.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

Copyrights (c) 2024 MTI Ltd. All Right Reserved23

School DX business

Motivation Works Inc.

Connecting students and teachersFull-cloud school affairs support system

Copyrights (c) 2024 MTI Ltd. All Right Reserved24

School DX business：Full-cloud school affairs support system

Motivation Works Inc.

A world withFunctions

Eliminating 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・ Reducing workload for school affairs
・ Reducing system management costs
ValuesTeachers’ terminal

Students’ terminal

Parental
Cooperation

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

Copyrights (c) 2024 MTI Ltd. All Right Reserved25

School DX business：Full-cloud school affairs support system

Image of medium-term profit

Motivation Works Inc.

Continuing increase in the numberof schools introducing our service

PlannedGrowthopportunities

・Accumulatiion of projects expected to be
new introducing in April 2025
・Government driving DX for school affair
unit by prefectural area
Differentiation
FY2021 FY2022 FY2023 FY2024 FY2025 FY2026

Cloud-based batch services
Copyrights (c) 2024 MTI Ltd. All Right Reserved

26

Image of medium-term profit

Copyrights (c) 2024 MTI Ltd. All Right Reserved27

Image of medium-term profit
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
Copyrights (c) 2024 MTI Ltd. All Right Reserved28

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

Copyrights (c) 2024 MTI Ltd. All Right Reserved

29