September 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 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 held on
September 30, 2019, it adopted a resolution on a capital increase of Pharmo, Inc. (hereinafter “Pharmo”), aconsolidated subsidiary of the Company, by way of a third-party allotment of shares to the Company andMitsubishi Corporation (hereinafter “Mitsubishi”). Details are as follows.
1. Purpose of capital increase by way of third-party allotment of shares
The Company pursues ICT utilization in the field of medicine/healthcare with the aim of achieving thedevelopment of a medical/healthcare platform. Pharmo plays the role of supporting ICT utilization for
dispensing pharmacies through an electronic medicine notebook and inventory management software.
Pharmo and Mitsubishi reached an agreement on promoting the support business for ICT utilization bydispensing pharmacies nationwide and the issue solution service. In addition, from the standpoint of deepening
the collaboration, Pharmo has decided to make a third-party allotment of shares to the Company and Mitsubishi
to form a capital alliance.
2. Use of funds to be procured
Pharmo undertakes the ICT support business for dispensing pharmacies and the issue solution service, andplans to use the funds as an upfront investment in business expansion through collaboration with Mitsubishi.
3. Overview of Pharmo （as of September 30, 2019）（1） Name（2） Address（3） Name and title of representative

Pharmo Inc.
35th Floor, Tokyo Opera City Tower 3-20-2,
Nishi-Shinjuku, Shinjuku-ku, Tokyo
Kaei Hiroi, CEOPlanning, development, management of Internet business,（4） Nature of businessresearch and development of medical information system andhuman resources business（5） Capital stock

48.5 millions of yen（6） Date of establishment

May 15, 2012(7) Major shareholder andMTI Ltd. 61.90%

shareholding ratios

Kaei HIroi, CEO 37.98%
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4. Outline of the allottee other than the Company(1) Name

Mitsubishi Corporation(2) Address

2-3-1 Marunouchi, Chiyoda-ku, Tokyo(3) Name and title of representative

Takehiko Kakiuchi, President and CEO
Multifaceted business development with a wide range of industries asbusiness domains in 10 groups including natural gas, industrial(4) Nature of businessmaterials, petroleum & chemicals, mineral resources, industrial
infrastructure, automotive& mobility, food industry, consumer
industry, power solution, and urban development group(5) capita stock

204,446 millions of yen(6) Date of establishment

July 1, 1954

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

(Unit: million yen)

For the fiscal yearFor the fiscal year
For the fiscal year
ended March 31,2017 ended March 31, 2018 ended March 31, 2019

Equity attributable to owners of theParent

4,917,247

5,332,427

5,696,246

Total assets（Consolidated）

15,753,557

16,036,989

16,532,800

3,101.43

3,362.34

3,589.37

6,425,761

7,567,394

16,103,763

601,440

812,722851,813440,293

560,173

590,737277.79353.27372.3980.00

110.00125.00Equity per share attributable to ownersof the Parent (Yen)
Revenue

Profit before tax
Profit for the year attributable toowners of ParentProfit for the year attributable toowners of the Parent per share (basic)(Yen)
Dividend per share (Yen)

5. Details of capital increase by way of third-party allotment of shares(1)

Number of shares held and

MTI: 2,600 shares, 61.90%

Capital contribution ratio before

Mitsubishi: - shares, -%capital increase

Kaei Hiroi, CEO: 1,595 shares, 37.98%(2) Type and number of new shares
to be issued(3)

Number of shares held andCommon stock 1,600 shares
MTI: 3,200 shares, 55.17%

Capital contribution ratio after

Mitsubishi: 1,300 shares, 22.41%

capital increase

Kaei Hiroi, CEO: 1,295 shares, 22.33%(Note) The amount of increased capital is not disclosed based on the results of talks with Mitsubishi.
In addition to the third-party allotment of shares, Kaei Hiroi transferred the 300 common shares heowned to Mitsubishi on the same day.

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6. Schedule(1) Date of MTI’s’ resolution

September 27, 2019(1) Date of MTI’s Board of Directors’

September 30, 2019resolution（2）Date of Pharmo’s Board of Directors’
resolution(3) Payment date

September 30, 2019
October 15, 2019 （Scheduled）

7. Outlook for the futureThis case will not have a material impact on the Company’s consolidated business results for the fiscal year
ending September 30, 2019.
(Reference)
Consolidated financial results forecast for the current fiscal year (Announced on July 30, 2019) 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

27,000

2,900

3,500

2,00029,075

3,218

3,116

1,629

（September 30, 2018）
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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