FY2013 forFY2013 for

Financial ResFinancial Resr the 1st Quarterr the 1st Quarter

sults Presentationsults Presentation

February 8, 2013Securities Code:9438

CONTENTS

Overview of Consolidated FinaFinancial Highlights for the 1st Quarter

P2

P3

Consolidated Statements of Income

Selling, General and Administrative Expenses

Consolidated Balance Sheets Statements

P4

P5

P6 Consolidated Balance Sheets Statements

Business Overview

P6

P7

New Approach After the 1st QuP13 New Approach After the 1st QuBasic Policy of the Fiscal Year

P13

P14

Focus on iPhone UsersP15

Enlargement of Contents Services

New Approach

P16

P18

Focus on iPhone Users

AppendixP21

Consolidated Forecast for the First HalfP20

ancial Results for the 1st Quarter

s

uarteruarter

P1

Financial Re

For the 1st QuFor the 1st Qu

esults Overview

uarteruarter

P2

Financial Highlights for the 1st Quar

The number of paying subscribers

Smartphones 3

Total 8Total 8

Financial results

Net sales： 7Financial results

Operating income：

Net income：

rter

(+0 54 million yoy)

3.67 million paying subscribers(+0.54 million, yoy)

8 16 million paying subscribers(+0.03 million, yoy)

8.16 million paying subscribers

( 154 illi f 2 1％)

7,331 millions of yen(-154 millions of yen, -2.1％)

millions of yen214(-756 millions of yen -77 9％)(-756 millions of yen, -77.9％)

millions of yen185(+1 millions of yen, +1.0％)

P3P3

( y , ％)

Consolidated Statements of Income

(Millions of yen）Three months endedSeptember 30, 2013

Three months endedSeptember 30, 2012

7 331 7 485Net sales 7,331 7,485Cost of sales 1,231 1,597Gross profit 6,099 5,887Gross profit 6,099 5,887（Gross profit ratio） 83.2% 78.7%Selling, general and administrative 5 885 4 916administrative expenses

5,885 4,916

Operating income 214 970（Operating income ratio） 2 9% 13 0%

Breakdown in the P5

（Operating income ratio） 2.9% 13.0%Ordinary income 216 961（Ordinary income ratio） 2.9% 12.8%Net income 185 183（Net income ratio） 2.5% 2.5%

Change

Amount Ratio(%)

154 2 1%

・Steadily increased in the system development orders to consolidated subsidiary Jibe Mobile K.K.

-154 -2.1%

-366 -22.9%

+212 +3.6%

・Decreased in the number ofdownloads in music contents

+212 +3.6%

+968 +19 7%

・Actively developed advertising campaigns in the release of smartphone new models.

+968 +19.7%

-756 -77.9% FY2013 FY2012

Extraordinary i

44 ‐

-745 -77.5%

gain

Extraordinary loss

16 283

Income tax 46 329

+1 +1.0% ・Sharply decreased in extraordinary loss.

・Sharply decreased in income taxes current

P4

in income taxes-current.

Selling, General and Administrative E

(Millions of yen）Three months endedSeptember 30, 2013

Three months endedSeptember 30, 2012

Total 5,885 4,916

Advertising expenses 2,176 1,348g p , ,

Personal expenses 1,421 1,377

Commission fee 812 823

Subcontract expenses 440 368

Depreciation 424 314

Other 609 683

Expenses

Change

Amount Ratio(%)

＋968 +19.7％

＋827 +61.4％・Actively developed advertising

campaigns in the release of smartphone new models

＋43 +3.2％

of smartphone new models.

-11 -1.4％

＋72 +19.6％

＋110 +35.0％

-73 -10.8％

P5

Consolidated Balance Sheets StatemenNet cash is ¥1.91 billion at the end of December 31(¥2.40 billion at the end of September 30, 2012)

f b f b(Millions of yen) As of December 31, 2012

As of September 30, 2012 Change

Current assets 9,380 9,630 -250

Cash and deposit 2,027 2,563 -535p , ,

Accounts receivable-trade 6,245 6,188 +56

Other 1,347 1,147 +200

Allowance for doubtful accounts -241 -268 +26accounts

Noncurrent assets 4,497 4,340 +156

Tangible fixed assets 213 218 -4

Intangible fixed assets 2,512 2,483 +28

Include software 2,247 2,255 -7

l d d ll 193 171 22Include goodwill 193 171 +22

Investments and other assets 1,771 1,639 +132

Include investment securities 403 376 +27

Total assets 13,877 13,971 - 93

nts1, 2012

A f b A f S b(Millions of yen) As of December 31, 2012

As of September 30, 2012 Change

Liabilities 4,868 4,566 +301

Accounts payable trade 1,044 1,233 -188p yCurrent portion of long-term loans payable 49 99 -50

Account payable-other 2,548 1,964 +583

Income taxes payable 49 7 +41

Allowance for coin usage 430 420 +9

Other 748 840 +92

Noncurrent liabilities 510 482 +27

Provision for retirement benefits 399 363 +36Provision for retirement benefits 399 363 +36

Other 110 119 -8

Total liabilities 5,378 5,049 +329

Capital stock 2,562 2,562 -

Capital surplus 3,078 3,078 -

Retained earning 3,062 3,394 -332

Treasury stock -695 -397 -297

S b i ti i ht t h 225 211 13Subscription rights to shares 225 211 +13

Minority interest 220 64 +155

Other 44 7 37

Net assets 8,499 8,922 -423

P6P6

Total liabilities and net assets 13,877 13,971 -93

Business Overviewⅰ)The Total Numb)

8.16 （+0.03 mmillion payingsubscribers

8 028.62 

9.33  9.31  9.38  9.62  9.73 

8.02 

09/09 09/12 10/03 10/06 10/09 10/12 11/03フィーチャーフォンFeature phone

Quarterly change in the nu

ber of Paying Subscribersy g

million, yoy） Regrowth9.36 

8.94 8.59  8.58 

8 04 8 138.16

8.04  8.13 

11/06 11/09 11/12 12/03 12/06 12/09 12/12ン スマートフォンSmart phone

P7

mber of paying subscribers

Business Overview ⅱ)The Number o

Steadily increasing

The number of subscribers by iPhone are also increasing.

1.97 mil

1.15 million

0.73 million

1月 2月 3月 4月 5月 6月 7月 8月 9月 10月 11月 12月 1月

Monthly change in the number of p

Jan JanFeb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Monthly change in the number of p

of Paying Subscribers（Smartphones）y g p

3 67 illi3.673.13 million

million（+0.54 million, yoy）

3.13 million

3.0 million

2 29 ll

llion2.0 million

2.29 million

1 0 million

iPhone

1.0 million

2月 3月 4月 5月 6月 7月 8月 9月 10月 11月 12月

paying subscribers for smartphones

0.32million0Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

P8

paying subscribers for smartphones

Business Overview docomo”d-menu”

No.1 Continued on the docomo”d-menu”on the docomo d menu in each category . New serv

No.1

※ Source: Ranking data from “d-menu”, a portal site for smartphone services, by

” Rankingg

vices ranked up on the list!No.2

No.1 No.1

No.3No.3

©Eiichiro Oda/SHUEISHA Inc.

P9

NTT docomo Co., Ltd. as of January 21, 2013

Business Overview e-Book Service

Steadily increased in paying subscrib

￥315 per monthAll d lAll-you-can-read novels

iOS, AndroidTablets

Windows8iPhoneAndroid

￥315 to ￥5250 per monthAll-you-can-read comics

AndroidTablets

Under repair for adoption to iOS and Windows8

Android

©Eiichiro Oda/SHUEISHA Inc.

Tablets

bers.

￥315 per monthAll h d b kAll-you-can-hear audio books

©AIUEOKAN Co.,Ltd.／Syogo HirataUnder repair for adoption to iPhone

iOS, AndroidTablets

Windows8Android

￥315 per monthAll-you-can-look at photo books

iOS, AndroidTablets

Windows8iPhoneAndroid

P10

Business Overview Consolidated Sub

Received steady orders for the de

"twitter","mixi","Faccan be operated for

Social news viewAvailable for checknews checked by fr

bsidiary Jibe Mobile y J

evelopment of carrier systems.

cebook","GREE" r only one time line.

werking in real time riends of yours.

P11

Business Overview mopita BusinesspAuthentication and payment platform

（Unit : million）

7.00 

8.00 

ID数（累計） 決済数

（Unit : million）

The number of Issued IDs(Accum) The number of paymen

4 00

5.00 

6.00 

2.00 

3.00 

4.00 

.0 

1.00 

10/09 10/12 11/03 11/060/09 0/ /03 /06

※Softbank paymentp y

Achieved

7.00Achieved

millionissued IDs

・ Collaborated with the various point-services・ Increased to pay for purchases

nts

11/09 11/12 12/03 12/06 12/09 12/12/09 / /03 /06 /09 /

P12

※Mobile Suica is trademark resistered to East Japan Railway Company.

New ApAfter t

pproachthe 1st Quarter

P13

Basic Policy of the FY2013Basic Policy of the FY2013

E i i th N b f

yy

Expansion in the Number of

Focus on iPhone Users

Enlargement of Conten

New Approach

f P i S b ibf Paying Subscribers

nts Services

P14

Focus on iPhone Users

Makeup of MTI Ltd smartpMakeup of MTI Ltd. smartp

iPhone

5％ Windows other

Android

As of September 30, 2012As of September 30, 20123.13 million

phone subscribers by the OSphone subscribers by the OS

iPhone

8％iPhone

Windows other

Android

As of December 31 2012As of December 31, 20123.67 million

P15

Enlargement of Contents Services ⅰ)g )

～Distribution service of tStarted in Jan 2013Jan, 2013

music.jpjp

the high-quality sound high resolution～g q y g

Wh t’ “hi h l ti ”?Whats high resolution ?

・Sound quality：24bit/ 96kHz 24bit/192kHz etc24bit/ 96kHz, 24bit/192kHz etc.（ CD; 16bit/44.1kHz）

・Device with play functions:High sound quality audio players/PCsHigh sound quality audio players/PCs

・Music data with broad frequency recording range

E h b l d

g g→ Sense of reality for richer music enjoyment.

Each song can be sampledfor 90 seconds before downloading.

P16

Enlargement of Contents Services ⅱ)

～From free service to subscribers serv

S b

g )

SubscrFree application service￥189 p

O t～Opt

●Diet Record and management●Basal body temperature

￥315 per mo

●Basal body temperature Record and management

Luna Luna

vice～

ibi th iribing per month service ￥263 per month

per month

￥315 per month

￥315 per month

ti iStarted in 

tion service～onth ￥315 per month

Check with partners’ Insurance service related to childbirth

Jan, 2013

P17

healthcare related to childbirth and hospitalization

New Approach ⅰ) Healthcare-relate

Membership registration 1st “Gen¥315 per month

・Diagnostic result・Die

Inspection kit 3,980 ye

Diagnostic result

・Consult to specialist lightly.・Genetic test ordered gene kit.

ed Service

2nd “Gene kit”ne kit”

“Karadamedicagene skin care”

Started in Dec, 2012

In preparation

et record and management

en 3rd “Gene kit”

In preparation

P18

New Approach ⅱ) Social Activation

～For enlargement of our fans in main co

Search portal created by own users

Activates the whole music market!Activates the whole music market!

ontents～

Data management

Users communityUsers community

300 thousand members

P19

300 thousand members

Earnings Forecast for the First halfg

(Millions of yen） Q1 result 1st half forecas

Net sales 7,331 14,50,33 ,50Cost of sales 1,231 2,70Gross profit 6,099 11,80（Gross profit ratio） 83.2% 81.4Selling, general and administrative expenses 5,885 11,70p

Operating income 214 10

（Operating income ratio） 2.9% 0.7p g

Ordinary income 216 10（Ordinary income ratio） 2.9% 0.7（ y ） 2.9% 0.7

Net income 185 5（Net income ratio） 2.5% 0.3

st Progress ratio

00 50.6%00 50.6%00 45.6%00 51.7%%

00 50.3％

00 214.6%

%

No forecast revision=================

・Actively developed advertising

00 216.0%%

Actively developed advertising campaigns in the release of smartphone new models.

%

50 370.7%%

P20

Appendix

P21

Trends in Consolidated Statements of

Year ended (Millions of yen）

Q1 Q2

Net sales 7,485 7,21Net sales 7,485 7,21

Cost of sales 1,597 1,40

5 887 5 80Gross profit 5,887 5,80（Gross profit ratio） 78.7% 80.5

Selling general and 4 916 5 62Selling, general and administrative expenses 4,916 5,62

Operating income 970 17（Operating income ratio） 13.0% 2.5

Ordinary income 961 17（Ordinary income ratio） 12.8% 2.5

Net income 183（Net income ratio） 2.5% -0.1

Income

September 30, 2012 Year ended S t b 30 2013p , September 30, 2013

Q3 Q4 Q1

15 7,251 7,429 7,33115 7,251 7,429 7,331

07 1,355 1,304 1,231

07 5 896 6 125 6 09907 5,896 6,125 6,0995% 81.3% 82.4％ 83.2%

28 5 391 6 075 5 88528 5,391 6,075 5,885

79 504 49 2145% 7.0% 0.7％ 2.9%

78 506 50 2165% 7.0% 0.7％ 2.9%

-6 234 -301 185

P22

1％ 3.2% -4.1％ 2.5%

Trends in Consolidated Selling, General

Year ended（Millions of yen）

Year ended

Q1 Q2

l 4 916 5Total 4,916 5,

Advertising expenses 1,348 2,

Personal expenses 1,377 1,

Commission fee 823

S b 368Subcontract expenses 368

Depreciation 314

Other 683

and Administrative Expenses

d September 30 2012 Year ended September d September 30, 2012 30, 2013

Q3 Q4 Q1

628 5 391 6 075 5 885628 5,391 6,075 5,885

104 1,714 2,483 2,176

258 1,457 1,427 1,421

824 821 819 812

407 376 391 440407 376 391 440

343 373 402 424

689 647 552 609

P23

Thank you

〈ContaPlanning Relations & InvesPlanning Relations & Inves

TEL:+81-3-5333-6323Mail:ir@

www.m

This report contains forward-looking statements on business perfomanagement using the information available at the time. Actual reeconomic conditions or changes in internal or external business enlatent risks or various other factors. In addition, risk and uncertainffuture events.

very much.

act us〉stor Relations Developmentstor Relations Development

FAX:+81-3-3320-0189@mti.co.jpmti.co.jp

ormance based on the judgments, assumptions, and beliefs of esults may dier substantially due to changes in domestic or overseas nvironments or aspects of uncertainty contained in the forecasts, nty factors include unpredictable elements that could arise from