October 30, 2019
For Immediate Release:
MTI Ltd.
Toshihiro Maeta,President and Chief Executive Officer
Listing: Tokyo Stock Exchange(First Section) [9438]
Contact: Hiroshi Matsumoto, Managing Director
Tel: +81-3-5333-6323

Notice of Posting of Non-operating Expenses and Extraordinary Losses
MTI Ltd. (hereinafter the “Company”) announces that it will recognize non-operating expenses andextraordinary losses in the financial statements for the fourth quarter (July 1, 2019 - September 30, 2019) ofthe fiscal year ended September 30, 2019. The outlines of the non-operating expenses and extraordinary losses
are as follows.

1. Posting of non-operating expenses
The Company has made MNES Inc. an equity-method affiliate as announced in the release, “Notice ofAcquisition of Shares of MNES Inc. (Making it an Equity-method Affiliate)” dated September 6, 2019, and it
will post a non-operating expense of 519 million yen as a share of loss of entities accounted for using theequity method primarily due to the one-time amortization of goodwill associated with the impairment ofMNES Inc.
2. Posting of extraordinary losses
Mainly due to the following matters, extraordinary losses of 1,149 million yen on a non-consolidated basis and650 million yen on a consolidated basis will be posted.
a) Posting of loss on valuation of investment securities (consolidated and non-consolidated basis)
The Company will recognize a loss on valuation of investment securities of 458 million yen in theconsolidated and non-consolidated financial statements by taking into account the business environment,
future outlook, and other factors related to the shares of investments.
b) Posting of valuation loss on shares of affiliates on a non-consolidated basis
The Company will recognize a valuation loss on shares of MNES Inc. and other equity method affiliates of
614 million yen in the non-consolidated financial statements by taking into account the businessenvironment, future outlook, and other factors.

［Reference］
Breakdown of extraordinary losses for the fourth quarter(Unit: millions of yen)
Loss on valuation of shares of subsidiaries and associates:
Loss on valuation of investment securities:
Impairment loss:
Loss on disposal of fixed assets:
Others:

1614
458
59
15
2

Breakdown of consolidated extraordinary losses for the fourth quarter(Unit: millions of yen)
Loss on valuation of investment securities:
458
Loss on sales of shares of subsidiaries and associates:
102
Impairment loss:
60
Loss on disposal of fixed assets:
15
Loss on valuation of shares of subsidiaries and associates:
11
Loss on transfer of business:2
3. The resulting impact of the losses on operating results
The resulting impact of the extraordinary losses on operating results is as described in the Summary ofConsolidated Financial Results for the Fiscal Year ended September 30, 2019 (Japanese AccountingStandards).
Disclaimer Regarding Forecast and Projections
This report contains forward-looking statements on business performance based on the judgments, assumptions
and beliefs of management using the information available at the time. Actual results may differ materially due tochanges in domestic or overseas economic conditions, changes in internal or external business environments, oraspects of uncertainty contained in the forecasts, latent risks or a variety of other factors. In addition, factors ofrisk and uncertainty include unpredictable elements that could 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 OfficeTel: +81-3-5333-6323
Fax: +81-3-3320-0189
E-mail: ir@mti.co.jp URL： https://www.mti.co.jp/eng

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