May 12, 2021
For Immediate Release:
MTI Ltd.
Toshihiro Maeta,President and Chief Executive Officer
Listing: Tokyo Stock Exchange(First Section) [9438]
Contact: Hiroshi Matsumoto, Senior Managing Director
Tel: +81-3-5333-6323

Notice Concerning Posting of Non-operating Expenses, Differences between Forecasts and Actual
Results for the First Half of the Fiscal Year and Revisions to Full-Year Results Forecast
MTI Ltd. (hereinafter the “Company”) announces that the Company will post extraordinary income as statedbelow for the second quarter of the fiscal year ending September 30, 2021 (from January 1, 2021 to March 31,2021).
In addition, the Company announces that the Company will revise the forecasts for the first half of the fiscal
year ending September 30, 2021 the revise the earnings forecast for the fiscal year ending September 30, 2021
announced on November 4, 2020. Detail are as follows.

1. Posting of non-operating expenses
As a result of reflecting the financial results of an equity-method affiliate, the Company recorded a share of lossof entities accounted for using the equity method of 404 million yen for the second quarter of the fiscal year endingSeptember 30, 2021.
2. Revision of the consolidated results forecast(1) Differences between forecasts and actual results for the first half of the fiscal year ending
September 30, 2021
(October 1, 2020 – March 31, 2021）

Previous announced
forecast (A)Current announced
forecast (B)Differences（B-A）
Differences（%）（Reference）
Actual results in the previous
fiscal year
(For the first half of thefiscal year ended September30, 2020)

ProfitNet
attributable toincomeowners of parent per share

Net sales

Operatingincome

Ordinary
incomeMillions of yen

Millions of yen

Millions of yen

Millions of yen

12,750~ 13,250

1,000~ 1,200

1,000~ 1,200650
~ 850

11.89
~ 15.55*

13,046

1,232840(1,416)(25.92)(203)~ +296(1.5)~ +2.3+32~ +232+2.7~ +23.2(159)~ (359)(15.9)~ (30.0)(2,066)~ (2,266)

12,973

1,446

1,310

1,246

1-Yen

*The forecast for net income per share released on the previous occasion is a figure taken from the Summary of Consolidated
Financial Results for the First Half of the Fiscal Year Ending September 30, 2021 (released on May 12, 2021) in which figures
recalculated on the basis of the number of outstanding shares (excluding treasury shares) as of March 31, 2021 are stated.

[Reasons for the differences]
Net sales and operating income were in line with expectations.
Ordinary income fell short of the previous forecast as a result of a larger-than-expected share of loss ofentities accounted for using the equity method described in 1. above.
Profit attributable to owners of parent came significantly below the previous forecast mainly due to thefollowing factors.
(i) Share of loss of entities accounted for using the equity method described in 1. above was larger thanthe previous forecast.
(ii) As stated in the “Notice Concerning Rights Issue of Consolidated Subsidiary and Transfer of Shares ofConsolidated Subsidiary” released on February 16, 2021, the Company transferred all shares ofSolamichi System Inc., a consolidated subsidiary of the Company, it owns to CARADA medica, aconsolidated subsidiary of the Company. As the method for the treatment of corporation tax on capitalgains through stock dealings would have material influence to consolidated accounting, the Company
consulted and confirmed with its accounting auditor, Ernst & Young ShinNihon LLC, as needed. At
the beginning, the Company planned to post deferred tax asset on the balance sheet and income taxes– deferred on the profit and loss statement. The accounting auditor then provided an opinion to theeffect that recording deferred tax asset and income taxes – deferred would not ultimately be permitted
in accordance with the existing accounting standards (ASBJ Statement No. 28 “Partial Amendments
to Accounting Standard for Tax Effect Accounting”) if there is no plan to sell Solamichi System Inc.
to a buyer outside the MTI Group. Accordingly, the Company has decided not to apply the accounting
treatment stated above. As a result, capital gains through stock dealings on a non-consolidated basis
have been eliminated on a consolidated basis, while corporation tax has been posted without change
on a consolidated basis.
(2) Revision of the consolidated financial forecast for the full fiscal year ending September 30, 2021
(October 1, 2020 – September 30, 2021)
ProfitNet
OperatingOrdinaryNet sales
attributable toincome
incomeincome
owners of parent per share
Millions of yen

Millions of yen

Millions of yen

Millions of yen

Current announced
forecast (B)25,500~ 26,500
25,500~ 26,500

2,100~ 2,500
2,100~ 2,500

2,100~ 2,500
1,600~ 2,000

1,300~ 1,700(1,000)~ (600)Differences（B-A）--(2,300)Differences（%）

--

(500)
(23.2)~ (4.0)26,082

2,507

2,082506

Previous announced
forecast (A)(Reference)
For the fiscal year ended
September 30, 2020

Yen

23.76
~ 31.07*(18.27)~ (10.96)

9.28*The forecast for net income per share released on the previous occasion is a figure taken from the Summary of Consolidated
Financial Results for the First Half of the Fiscal Year Ending September 30, 2021 (released on May 12, 2021) in which figures
recalculated on the basis of the number of outstanding shares (excluding treasury shares) as of March 31, 2021 are stated.

[Reasons for the revisions]With respect to forecasts for full-year consolidated results for the fiscal year ending September 30,
2021, the Company has left net sales and operating income unchanged, while it has made downward
revisions to ordinary income and profit attributable to owners of parent, taking into considerationdifferences from the most recent forecasts of the financial results for the first six months of the fiscal
year under review. In addition, the Company believes that the spread of the COVID-19 infections has
a minor impact on forecasts for the full-year consolidated financial results at the present time. If any2

event that is expected to have a serious impact is identified going forward, the Company will makedisclosure promptly.
＜Points to consider concerning forecasts
Matters stated in this material concerning results forecasts are based on assessments, assumptions andconvictions derived from information available to the Company at the time when this material is published.
They may differ significantly from actual results due to a variety of factors, including future economic
conditions in Japan and overseas, changes in conditions for business operations in Japan and overseas, oruncertain factors and potential risks inherent in forecasts. Those risks and uncertain factors include
unpredictable effects on results that may arise from future events.
Note: This document has been translated from a part of the Japanese original for reference purposes only. In
the event of any discrepancy between this translated document and the Japanese original, the original shallprevail. The Company assumes no responsibility for this translation or for direct, indirect or any other formsof damages arising from the translation.

Contact information for inquiries
Investor Relations OfficeE-mail: ir@mti.co.jp
URL： https://www.mti.co.jp/eng

3