MTI : Notice Regarding Differences between Forecasts and Actual Results for the First Half of the Fiscal Year, and Revisions to Full-Year Results Forecast

May 11, 2023

For Immediate Release:

MTI Ltd.

Representative: Toshihiro Maeta,

President and Chief Executive Officer

Listing: TSE Prime [9438]

Contact: Hiroshi Matsumoto,

Senior Managing Director

Tel: [phone]

Notice Regarding 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 revise the forecasts for the first half of the fiscal year ending September 30, 2023, the revise the earnings forecast for the fiscal year ending September 30, 2023 announced on November 9, 2022. Detail are as follows.

1. Revision of the consolidated results forecast

1. Differences between forecasts and actual results for the first half of the fiscal year ending September 30, 2023

(October 1, 2022 - March 31, 2023）

Operating

Ordinary

Profit

Net

Net sales

attributable to

income

income

income

owners of parent

per share

Previous announced

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

forecast (A)

12,700

200

0

(740)

(13.5)*

Current announced

13,613

(18)

187

(326)

(5.95)

forecast (B)

Differences（B-A）

+913

(218)

+187

+413

Differences（%）

+7.2

−

−

−

（Reference）

Actual results in the previous

fiscal year

12,975

599

292

123

2.25

(For the first half of the

fiscal year ended September

30, 2022)

*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, 2023 (released on May 11, 2023) in which figures recalculated on the basis of the number of outstanding shares (excluding treasury shares) as of March 31, 2023 are stated.

[Reasons for the differences]

Net sales exceeded the initial forecast mainly due to the video sales of consolidated subsidiary Video Market Corporation.

Operating income was lower than the initial forecast primarily reflecting an increase in the cost of sales as a result of the ongoing response to low-margin projects in the DX support business for major corporate customers and sluggish orders in the AI business of subsidiary Automagi Inc.

Ordinary income was higher than the initial forecast as a result of an equity-method investment profit posted due to the improved results of equity-method associated companies in contrast to the initially expected equity-method investment loss.

1

Loss attributable to owners of parent improved from the initial forecast. This is mainly attributable to gain on change in equity due to extraordinary income caused by the Company's investment ratio declining due to an equity-method affiliate implementing a private placement in addition to higher-than-expected ordinary income.

1. Revision of the consolidated financial forecast for the full fiscal year ending September 30, 2022 (October 1, 2022 - September 30, 2023)

Operating

Ordinary

Profit

Net

Net sales

attributable to

income

income

income

owners of parent

per share

Previous announced

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

forecast (A)

26,000

800

800

(600)

(10.94)*

Current announced

26,800

200

400

(400)

(7.29)

forecast (B)

Differences（B-A）

+800

(600)

0

+200

Differences（%）

+3.1

(75.0)

0.0

−

(Reference)

For the fiscal year ended

26,479

870

485

(930)

(16.99)

September 30, 2022

*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, 2023 (released on May 11, 2023) in which figures recalculated on the basis of the number of outstanding shares (excluding treasury shares) as of March 31, 2023 are stated.

[Reasons for the revisions]

Regarding the consolidated business results forecasts for the fiscal year ending September 30, 2023, net sales were revised upward, operating income was revised downward, ordinary income was not changed and profit was revised upward in consideration of the differences between the results and forecasts for the first six months, the ongoing response to low-margin projects in the DX support business for major corporate customers and the sluggish orders for AI business.

＜Points to consider concerning forecasts

Matters stated in this material concerning results forecasts are based on assessments, assumptions and convictions 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, or uncertain 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 shall prevail. The Company assumes no responsibility for this translation or for direct, indirect or any other forms of damages arising from the translation.

Contact information for inquiries

Investor Relations Office

E-mail:[e-mail]

URL：https://ir.mti.co.jp/eng/

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