Conclusion of Agreement to Tender for Shares of Equity-Accounted Investee (Shobunsha Holdings Co., Ltd.) and Notice on Recognition of Special Loss (Consolidated) and Special Gain (Non-consolidated)

Overview of the TOB

MTI Ltd. has entered into an agreement to tender the ordinary shares of its equity-accounted investee, Shobunsha Holdings Co., Ltd., to the public tender offer (TOB) conducted by the tender offeror, MSE Co., Ltd. Because Shobunsha is an equity-accounted investee of MTI Ltd., upon execution of the tender agreement Shobunsha is expected to cease being an equity-accounted investee of MTI Ltd. For specific terms, conditions and the period of the TOB, please refer to the separate announcement by Shobunsha.

Financial Impact and Next Steps

If the TOB is successful, MTI Ltd. expects to record a special loss (loss on sale of shares in affiliates) of approximately 410 million yen in its consolidated financial statements for the fiscal year ending September 2027, and a special gain (gain on sale of shares in affiliates) of approximately 1,530 million yen in its non-consolidated financial statements. The impact amounts will be incorporated into the consolidated earnings guidance for the fiscal year ending September 2027 in the financial summary under Japanese GAAP scheduled for publication on November 10, 2026. MTI Ltd. will promptly disclose any additional information as it becomes available.