April 26, 2019
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

Differences between Earning Forecast and Actual Results
for the First Half of the Fiscal Year Ending September 30, 2019
MTI Ltd. (hereinafter the “Company”) hereby announces that differences have arisen between the earnings
forecast for the first half of the consolidated fiscal year ending September 30, 2019, which the Company
announced on October 30, 2018, and actual operating performance. Details are as follows.
1. Details of the differences
Differences between earnings forecast for the first half of the consolidated fiscal year ending
September 30, 2019 and actual results(October 1, 2018 – March 31, 2019)
ProfitOperating
Ordinary
attributable toNet income
Net sales
incomeincomeowners ofper share
parentMillions of yen
Millions of yen
Millions of yen
Millions of yen
Yen
Forecast previously
14,000
1,000
950
600
10.97*
announced (A)Forecast revised this time (B)Change (B - A)
Rate of change (%)(Reference) Actual results(Fiscal year ended September30, 2018）13,932

1,635

1,577860

(67)

+635

+627+260(0.5%)+63.5%+66.1%+43.5%

15,162

1,372

1,325

1,154

* Net income per share as in the previously announced forecast remains the same as the one described in Summary offinancial Results for Q1 FY 2019 (announced on January 30, 2019), which was recalculated with the number of shares
outstanding (excluding treasury shares) as of December 31, 2018.

2. Reasons for the differences
Net sales were in line with the Company’s initial forecast, reflecting the rising trend in average revenue
per user (ARPU), despite a fall in the total number of paying subscribers compared to the same period of
the previous fiscal year.
Operating income, ordinary income and profit attributable to owners of parent outperformed theCompany’s plan, because part of the budget for selling, general and administrative (SG&A) expenses was
not spent as a result of curbed advertising expenses, with priority attached to the efficiency of theacquisition of paying subscribers on smartphones at cellphone shops, although the cost of sales exceeded
the initial forecast.
With respect to the consolidated earnings forecast for the fiscal year ending September 30, 2019, theforecast for net sales in the latter half of the fiscal year under review remains unchanged from the1

15.74

21.17

previously announced forecast because the Company expects to see the same trend in the latter half as in
the first half and the forecast for profits are also the same as the previous forecast, considering that thecost of sales and SG&A expenses will likely exceed the initial forecast in the second half.

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
Futaki, 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

2