October 31, 2018
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 Consolidated Subsidiary’s Capital Increase Through Third-Party Allotment of Shares
MTI Ltd. (hereinafter the “Company”) hereby announces that at the meeting of its Board of Directors heldon October 31, 2018, it adopted a resolution on a capital increase of CARADAmedica, Inc. (hereinafter“CARADAmedica”), a consolidated subsidiary of the Company, by way of a third-party allotment of shares
to Medipal Holdings Corporation (hereinafter “Medipal”). Details are as follows.
1. Purpose of capital increase by way of third-party allotment of shares
In June 2016, the Company and Medipal formed a capital and business alliance for the purpose of promoting
wider use of Information and Communication Technologies (ICT) in the medical and healthcare areas andestablishing a medical and healthcare platform. As part of efforts to promote this alliance, both companies
have agreed to collaborate on online medical examination service business. Moreover, from the viewpoint ofstrengthening this collaborative relationship, it was decided that CARADAmedica, a wholly owned
subsidiary of the Company, would execute a third-party allotment of shares to Medipal (the capital
contribution ratio of Medipal will be 34.4%).
2. Use of funds to be procured
CARADAmedica offers Q&A service in which medical doctors, nurses, pharmacists and others respond tousers having various anxieties or uncertainties over their health. Based on the know-how accumulated byoperating and developing this service, CARADAmedica aims to promote wider use of a new online medical
examination service. The funds procured are scheduled to be appropriated as development fund and business
investment fund for the expansion of this business.
3. Overview of CARADAmedica （as of September 30, 2018）（1） Name（2） Address（3） Name and title of representative（4） Nature of business

Caradamedica Inc.
35th Floor, Tokyo Opera City Tower 3-20-2,
Nishi-Shinjuku, Shinjuku-ku, Tokyo
Seitaro Sugawara, CEO
Provision of online medical examination system and healthcare
contents distribution services

1（5） Capital stock

100 millions of yen（6） Date of establishmentJuly 1, 2015(7) Major shareholder andshareholding ratios

MTI Ltd. 100.0%

4. Outline of the allottee(1) Name

Medipal Holdings Corporation(2) Address

2-7-15, Yaesu, Chuo-ku, Tokyo, Japan(3) Name and title of representative

Shuichi Watanabe, Representative Director, President and CEO
As a holding company, Medipal Holdings Corporation controls,administers and supports the operating activities of companies inwhich it holds shares in the Prescription Pharmaceutical Wholesale(4) Nature of businessBusiness; the Cosmetics, Daily Necessities and OTC Pharmaceutical
Wholesale Business; and the Animal Health Products and Food
Processing Raw Materials Wholesale Business, and conducts businessdevelopment for the Medipal Group.

(5) capita stock

22,398 millions of yen(6) Date of establishment

May 6, 1923

(7) Operating results and financial position during the past 3 years

Consolidated net assets(Unit: million yen)

For the fiscal year
For the fiscal year
For the fiscal year
ended March 31,2016 ended March 31, 2017 ended March 31, 2018
488,328
521,165
572,656

Consolidated total assets

1,497,310

1,525,912

1,621,573

Consolidated book value per share(Yen)

1,832.45

1,950.25

2,154.93

Consolidated net sales

3,028,187

3,063,900

3,146,314

Consolidated operating income

42,28339,65044,260Consolidated ordinary income

55,14053,36057,349Profit attributable to owners of parent
Consolidated earnings per share (Yen)

30,77129,011

34,780135.89128.12

154.13

Dividend per share (Yen)

28.00

31.00

34.00

5. Details of capital increase by way of third-party allotment of shares(1) Type and number of new shares
to be issued

Common stock 9,000 shares(2) Amount of funds to be procured

2,115 millions of yen(3) Capital contribution ratio after

MTI Ltd. 65.6%

capital increase

MEDIPAL HOLDINGS CORPORATION

234.4%

6. Schedule(1) Day of MTI’s Board of Directors’

October 31, 2018resolution（2）Date of resolution by Caradamedica’s
Board of Directors

October 26, 2018
November 9, 2018 （Scheduled）(3) Payment date
7. Outlook for the futureThis case will have a very minimal impact materially on the Company’s consolidated business results for thefiscal year ending September 30, 2019.
(Reference)
Consolidated financial results forecast for the current fiscal year (Announced on October 30, 2018) andconsolidated results for the previous fiscal year
(Unit: millions of yen)

Consolidated
Consolidated

Consolidated

Consolidated

Profit attributable

Net sales

Operating income

Ordinary income

to owners ofparent

Forecasts for consolidated
financial results（September30, 2019）
Consolidated results for theprevious fiscal year
（September 30, 2018）

28,000

2,400

2,300

1,400

29,075

3,218

3,116

1,629

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

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