61th (Fiscal Year 2009) 1st Half Financial Report
April 1 to September 30, 2009

MUTOH HOLDINGS CO., LTD.

TSE securities code : 7999

Inspiring Creativity in People
and Companies
The creative power of people brings advances to life, industry and communities.
At MUTOH, our mission is to deliver products and services that ignite the imaginations ofpeople and companies alike. A manufacturing professional with an impressive trackrecord, MUTOH is uniquely positioned to build value through creativity.

From Inspiration to Admiration
We are the experts at expressing designers’ intent with scintillating clarity,
widening the circle of excitement.

From Ideas to Delight
We support customers’ IT ideas from planning to design.
Bringing excitement to designers’ dreams is our specialty.

From Images to a Common Understanding
We speak the language of technical drawings, the language of designers.
We expand the discussion from “getting it produced” to “attracting the admiration of the market.”Basic Policy
Supporting today’s business challenges
with constant innovations,sustained initiative and social contributions.
We would like to express our gratitude to
all of our shareholders who continue tosupport us.
We present you with our 61st (Fiscal Year
2009) 1st Half Financial Report.
Regarding economic conditions during thefirst half of the current consolidated fiscal
year, although the impact of the simultaneous
global recession continues, we are beginningto see signs of a bottom in parts of theeconomy, thanks to active fiscal spending bymajor countries. Nonetheless, in the real
economy the recession shows no signs ofabating, as evidenced in the worsening
employment situation along with sluggish
consumer spending and private capital
expenditures.

Consolidated Financial Highlights
Consolidated net sales (Millions of yen)
61st (FY2009) 1st Half period:

10,51358th (FY2006) period:

59th (FY2007) period:

60th (FY2008) period:

28,752
14,34730,416
16,092

26,33814,997

1st Half

1st Half resultsby business Segment
Net Sales (Millions of yen)
Imaging & Information BusinessInformation Service Business
Real-Estate Leasing Businessand Other Business

Consolidated ordinary income (Millions of yen)th

L 61st period:(34)

61st (FY2009) 1st Half period:th¥10,513 millionth

58 (FY2006) period: 59 (FY2007) period: 60 (FY2008) period:

1st Half

2,068
992

1,394
1,621

3,210
2,149

1,647

1,003

Consolidated net income (Millions of yen)
st

7,862

(269)

st

61 (FY2009) 1 Half period:

58th (FY2006) period: 59th (FY2007) period: 60th (FY2008) period:

1st Half

1,073
540

1,802
1,141

604
924

L 60st period:¥14,997 million
Amid these circumstances, consolidated
business performance generally fell below
the previous year’s, due to the impact of thestagnating economy. Net sales stood at¥10,513 million (down 29.9% year-onyear), an operating loss of ¥2 million was
posted (compared with an operating incomeof ¥1,300 million year-on-year) and an
ordinary loss of ¥34 million was posted(compared with an ordinary income of¥1,621 million year-on-year). These businessresults all exceeded initial projections.
However in terms of net profit, a net loss of¥269 million was posted (compared with a
net income of ¥924 million year-on-year),falling below initial projections. This loss ist h e result of carefully examining thecollectability of deferred tax assets within
this uncertain economic environment andmaking a reduction in a portion of theseassets.

Consolidated gross assets (Millions of yen)
61st (FY2009) 1st Half period:

1,842

1,775

27,23058th (FY2006) period: 59th (FY2007) period: 60th (FY2008) period:

29,72330,96428,301

11,380Consolidated net assets (Millions of yen)
61st (FY2009) 1st Half period:

18,729L 59st period:

58th (FY2006) period: 59th (FY2007) period: 60th (FY2008) period:

18,74420,084¥16,092 million

18,8801,874 1,825

12,392

CONTENTS

Consolidated Financial Highlights.... 1

Forecast of results for the full fiscal year

Overview of Business Segments
Imaging & Information Business .. 2
Information Service Business ........ 3(Millions of yen)

Net sales

OperatingincomeOrdinary
incomeNet income

22,000

600

600

300

Real-Estate Leasing Business andOther Business ............................... 4
Topics ................................................ 4

Forecast of consolidated
business results

New Products of the Group ............ 5

Since the economic depression came into full swing during the second half of last year,

Financial Statements

there does not appear to be any sign of recovery in the real economy and the business

Consolidated 1st Half Financial
Statements ..................................... 6
Stock Information ............................ 8
Company Profile / Directors ............. 9environment continues to be uncertain. Within this harsh operating environment, theGroup’s performance for the first half of the current consolidated fiscal year has mostly
been in line with forecasts made at the beginning of the period. Thus, there is no change inthe full-year forecast as announced.

1

Overview of Business Segments
Breakdown of net sales by region

74.8%

North America

Europe¥7,862million

Other regions

Asia
Japan

Imaging & Information Business
Overview
MUTOH imaging and information business, focused onlarge-format inkjets, faced reduced orders resulting fromthe global recession. Although efforts to reorganize
operations led to higher sales than last year in some areas ofAsia, sales stood at ¥7,862 million (down 30.9% year-onyear) with an operating loss of ¥79 million (compared to¥1,054 million in profit the previous year), due to the
combined impact of a drop in unit prices and a significantly
stronger yen compared to the previous year.

More Aggressive Overseas Strategies
In the Asia-Pacific region, the MUTOH Group markets large-format inkjet printers through Mutoh
Industries Ltd.
We are currently expanding local sales through printers compatible with low-solvent (Eco-Solvent)ink, as well as other products. In anticipation of further expansion, we have established sales offices
in Hong Kong, Singapore, and Australia-key cities in the Asia-Pacific region for the more aggressive
marketing needed. These offices will accelerate decision-making and are helping us build an
optimal business network.

2

Hong Kong Affiliate(1) Company name :Mutoh Hong Kong Ltd.
(2) Headquarters :Hong Kong, People’s Republic of China(3) Date established : October 2009(4) Start of business : January 1, 2010 (planned)(5) Nature of business : Marketing, sales, service, and import /export of imaging and informationequipment

Singapore Affiliate(1) Company name :Mutoh Singapore Pte. Ltd.
(2) Headquarters :Singapore(3) Date established : October 2009(4) Start of business : January 1, 2010 (planned)(5) Nature of business : Marketing, sales, service, and import /export of imaging and informationequipment

Australia Affiliate(1) Company name :Mutoh Australia Pty. Ltd.
(2) Headquarters :Sidney, Australia(3) Date established : October 2009(4) Start of business : January 1, 2010 (planned)(5) Nature of business : Marketing, sales, service, and import /export of imaging and informationequipment

Information Service Business
Overview
As the prolonged economic slump in Japan continues to restrict capital expenditures andworsen employment conditions, the scale of user projects in contract-based businesses has
shrunk, and sales in CAD businesses have declined. Sales stood at ¥1,003 million (down
43.5% year-on-year) with an operating loss of ¥56 million (compared to ¥23 million in profit
the previous year).

9.5%¥1,003million

New Business Area : Serving Manufacturers
with Production and Inventory
Management Systems
Mutoh Industries has concluded an agency agreement with
software developers Ubiquitous Soft and Data Collection
Systems. This marks our entrance into core systems business, as a
distributor of ProductionMaster and InventoryMaster (production
and inventory management systems, respectively). Marketing
efforts will be focused on assemblers and manufacturers withoverseas plants.

Check

Plan

ProductionMaster TM
Integrated production
management system◆ ProductionMaster TM is a software
package for integrated production
management that covers all manufacturing
processes from orders to shipping. It is
designed to be an intuitive, user-friendly,and easy-to-deploy production management
system, even for customers migratingfrom Excel-based management.

Production Planning

Confirmation of Delivery Schedules

ActionDo

Systematic Ordering Instructions

Reviewing Work-Related Notifications

InventoryMaster TM
Inventory management system for manufacturers
involved in fabrication and assembly◆ InventoryMaster TM is an inventory and production
management system developed for manufacturers. To meetneeds for three types of inventory in manufacturing, threemain modules are provided : Raw Material, Work-In-Progress,
and Finished Goods. Consolidated management of
inventory data of all kinds is performed in another module,
the Data Warehouse module.

Core System: ERP
Data Interface

Downloaded: Master files and picking/delivery instructions
Uploaded: Data regarding stocking and delivery from warehouses,
inventory adjustment, and so on

Data Warehouse Module (DW)
Traceability

Raw
Material
Module(RM)

Work-InProgress
Module(WIP)

Finished
Goods
Module(FG)

3

Real-Estate Leasing Business and Other Businesses
Net sales ratio by operation

15.7%

Real-estateleasing

Other

Sports-care
products

Design drafting
equipment
Optical measuring
instruments¥1,647million

Overview
In the real estate leasing business, results were solid due
to steady lease continuation, with sales at ¥418 million(up 8.8% year-on-year) and operating profit of ¥253
million (up 27.3% year-on-year).
Other businesses in our diversified portfolio include
design/drafting equipment, optical measuring
instruments, sports-care products, and retail outlets forbooks and stationery. These businesses have been affectedby generally lower private capital expenditures andconsumer spending from the prolonged downturn in thedomestic economy. Sales stood at ¥1,229 million (down
15.7% year-on-year) with an operating loss of ¥8 million(compared to ¥80 million in profit the previous year).

TopicsMutoh Industries Online CAD Shop

http://cadshop610.com/
A convenient way to purchase M-Draf products online

O

!
N
PE
The M-Draf series, optimized for drafting practices in Japan¥89,250¥419,475¥1,606,500

Special annual packages with SMP membership and technical support also available.

4New Products of the Group

Brilliant Color, Courtesy of Nature

Uses eco-friendly ink (80% vegetable-derived)
Controller-equipped
feeder facilitates
printing on board
media

Printed surfaces resist
cracking when bent,
thanks to the elastic
properties of the ink

Superior feed control enables
printing on board media up to1,600 mm wide without buckling.
Board media up to 10 mm thickand 5 kg is supported. Thickness
is detected automatically. (Canalso be deactivated for continuous
print jobs.)

Mubio ink can be used to print on
uncoated PET and PP plastic, paperand other spooled media, as well as
on corrugated plastic, styrene, andother board media. Adhesive andtightly bonding, the ink resists
peeling if media bends or stretches.
Even used in thermoforming
applications.

Blower and heated
air nozzles

In addition to using a blower(connected to an air compressor,
as on conventional printers), thismodel can also heat the air for
faster ink drying and better
productivity.
Air temperature is adjustable,
enabling support for a variety
of media.

Note: The feeder is optional.

LED Panels
MDP Series
LED circuits are mounted directly on aluminum sheets,
using an original circuit design

Thin, Light,
and Cool

LED Panels
Minimum thickness: 3
mm, including aluminumbase layer
Choose brightness andcolor temperature tosuit the application
Energy-efficient andcool
Needs for various panel
sizes and cable lengths
can be easily met
Can be waterproofed

For signage, illumination, inspection benches,and other applications

Custom sizes
available
Product Specifications

LED Panel Reference unit size: 450 mm×450 mm
Brightness

Current
Consumption

Power
Consumption

Drive Voltage

MDP-4545-1

1-chip type2500 lux

0.7 A

Approx. 8.4 W

DC 12 V

MDP-4545-22-chip type4500 lux

1.4 A

Approx. 16.8 W

DC 12 V

5

Financial Statements

Consolidated 1st Half Financial Statements■ Consolidated Balance Sheets(Millions of yen)

Period As of September 30, As of September 30,
Account

2009

2008

As of March 31,
2009

AssetsCurrent assets

Cash and bank deposits(Millions of yen)

Period As of September 30, As of September 30,

As of March 31,
2009

2009

2008

4,419

7,330

5,472

Notes and accounts
payable

2,192

4,156

2,897

Short-term bank loans
and current portionof long-term debt

219

186

249

2,007

2,987

2,324

Long-term liabilities

4,082

4,650

3,949

Long-term debt

354

795

340

Others

3,727

3,855

3,608

Total liabilities

8,501

11,981

9,421

Shareholders’ equity

19,65020,87419,921

Common stock

10,19910,19910,199

Capital surplus

4,182

4,182

4,182

Retained earnings

7,574

8,164

7,843

Treasury stock(2,305)(1,671)(2,303)

Valuation andtranslation adjustments(1,501)(795)(1,600)Minority interests

580

521

558

Total net assets

18,72920,60018,880Total liabilities and net assets

27,23032,581

28,301

Account

Liabilities
15,652

6,231

Notes and accounts
receivable

4,132

Inventories

4,978

20,025

5,449

6,571

16,583Current liabilities

4,960

4,742
Others

6,654

6,095

Others

310

1,350

785

Fixed assets

11,57812,555

11,718
Net assets

Tangible fixed assets

Intangible fixed assets

Investments andother assets

Investment securities

6

9,382

9,863

9,533

814

1,032

857

1,381

1,659

1,326

713

742

576

Others

668

917

749

Total assets

27,23032,581

28,301

Consolidated 1st Half Financial Statements■ Consolidated statements of income(Millions of yen)

Period 1st Half period ended

September 30, 2009

Account

1st Half period ended Year ended March 31,
September 30, 2008
2009

Trends of net sales (Millions of yen)

10,513

14,997

26,338The 59th
fiscal term

Operating income (loss)

(2)

1,300

951

The 60th
fiscal term

Ordinary income (loss)

(34)

1,621

1,394

Income (loss) before income
taxes and minority interests

16

1,509

1,176

(269)

924

604

Net sales

Net income (loss)

1st half year

Full fiscal year

16,09230,41614,997
26,338

The 61th
fiscal term

10,5130

10,00020,00030,000Trends of operating income (Millions of yen)
Full fiscal year

■ Consolidated statements of cash flows
Period 1st Half period ended

September 30, 2009

Account(Millions of yen)

1st Half period ended Year ended March 31,
September 30, 20082009

Net cash from operating activities

1,503

666

1,108

Net cash from investing activities(139)(1,242)(965)

Net cash from financing activities

(45)

(41)

(951)

Effect of exchange-rate changes oncash and cash equivalents

(47)

(100)

(397)

Net increase (decrease) in cash andcash equivalents

1,270

(718)

(1,207)

Cash and cash equivalents at
beginning of period

4,960

Cash and cash equivalents at end of period

6,231

2,135

The 59th
fiscal term

3,022
1,300
951

The 60th
fiscal term
The 61th
fiscal term

1st half year-2

-1,000

0

1,000

2,000

Trends of ordinary income (Millions of yen)
Full fiscal year

3,210

6,167
1,621
1,394

The 60th
fiscal term

5,449

1st half year

2,149

The 59th
fiscal term

6,167

3,000

4,960
The 61th
fiscal term

-34

-1,000

0

1,000

2,000

3,000

■ Consolidated subsidiaries in each business segment
Trends of net income (Millions of yen)
Business segment

Company names

Imaging & Information
Business

MUTOH INDUSTRIES LTD., MUTOH ENGINEERING INC.,
MUTOH EUROPE nv, MUTOH DEUTSCHLAND GmbH.,
MUTOH AMERICA INC. SE Group S.A.

Information Service
Business

MUTOH INDUSTRIES LTD.,
MUTOH ITEX Co., Ltd.

Full fiscal year

MUTOH HOLDINGS CO., LTD., MUTOH ENGINEERING INC.,
MUTOH ENTERPRISES LTD.

Other Business

MUTOH ENGINEERING INC.,
MUTOH ENTERPRISES LTD.

1,141

The 59th
fiscal term

1,802
924

The 60th
fiscal term

604

The 61th
fiscal term
-269
-500

Real-Estate Leasing
Business

1st half year

0

500

1,000

1,500

2,000

7

Stock information (As of September 30, 2009)■ Number of shares issuable

170,000,000■ Number of shares issued

54,818,180■ Shareholders who holds greater than 10% of thetotal number of shares issued
Shareholders

Units held

Percentage ofvoting rights■ Number of shares per unit

1,000

TCS HOLDINGS CO., LTD.

■ Number of shareholders

4,488

Note: Above Percentage of voting rights is calculated exclusively the treasury stock(8,808,477 shares).

28.69■ Breakdown by the number of shares held

■ Breakdown of shareholders
Securities companies
0.87%
31

13,200Foreign companies
5.22%
48

5 or more
2.96%
270

1 or more
6.70%
2,201

10 or more
7.94%
238

Less than 1
0.80%
1,705

50 or more
4.31%
35

Financial institutions
14.96%
32
Other companies
46.72%
239

8

Individuals and others
32.23%
4,138

100 or more
9.12%
26

500 or more
4.77%
41,000 or more
63.40%
9

Company Profile (As of September 30, 2009)
Name:

MUTOH HOLDINGS CO., LTD.

Established:

March 5, 1952
(founded: December 1942)

MUTOH group companies
MUTOH INDUSTRIES LTD.
Development, manufacturing, and sales of imaging andinformation equipment and information services (CAD /CAM)

Common stock:

10,199 million yen

Head office:No.5 TOC Building, 21-1, Nishi-Gotanda,
7-chome, Shinagawa-ku, Tokyo 141-8683
Tel: +81-3-5740-8700

MUTOH ENGINEERING INC.
Maintenance of imaging and information equipment, etc.

Main business:

Management and assets management of
the Group companies

MUTOH ENTERPRISES LTD.
Sports-care product sales / management of retail outlets
for books, stationery, etc.

Website address:

http://www.mutoh-hd.co.jp
MUTOH ITEX Co., Ltd.
System integration services / application softwaredevelopment
MUTOH AMERICA INC.
Sales of imaging and information equipment
MUTOH EUROPE nv
Development, manufacturing and sales of imaging andinformation equipment
MUTOH DEUTSCHLAND GmbH
Sales of imaging and information equipment
SE Group S.A.
A Corporate group selling imaging and information-related
equipment and material.

Directors (As of September 30, 2009)
Masanori Takayama

Chairman of the Board

Masanobu Takeda

Full-time Auditor

Toshiaki Sato

President

Hiroki Nakano

AuditorNobumasa Hayakawa

Director

Nobuaki Kunimine

Auditor

Arthur Vanhoutte

Director

Zentaro Maekawa

Director

Yoshiyuki Takayama

Director

9

Shareholder Information
Business year :From April 1 to March 31 of the following year

Ordinary General Meeting of Shareholders :In June each year

Year-end Dividend Record Date :March 31 each year

Interim Dividend Record Date :September 30 each year

Public Notices :Public notices shall be made on the Company’s website (http ://www.mutoh-hd.co.jp).
* In case the public notices are not available on the Company’s website due to unavoidable
circumstances, such notices shall be made in the Nihon Keizai Shimbun

Administrator of Shareholder Register :The Chuo Mitsui Trust and Banking Company, Ltd.
33-1, Shiba 3-chome, Minato-ku, Tokyo 105-8574, Japan

Mail address and Telephone number :8-4 Izumi 2-chome, Suginami-ku, Tokyo 168-0063
Tel. +81-120-78-2031 (toll-free)
Stock Transfer Agency Department
The Chuo Mitsui Trust and Banking Company, Ltd.
Stock transfer agent services are provided at branch offices in Japan of The Chuo Mitsui Trustand Banking Company, Ltd., and the Head Office and branch offices in Japan of Japan
Securities Agents, Ltd.

Notes :
1. Requests for change of address, purchasing of shares constituting less than one unit, and selling of shares to constitute one unit
Please make all requests to the securities company where shareholders maintain their account.
For those shareholders who do not have an account at a securities company but who have opened a special account, please make all requests
to The Chuo Mitsui Trust and Banking Company, Ltd., an account management institution of special accounts.
2. Payment of accrued dividends
Please make all requests to The Chuo Mitsui Trust and Banking Company, Ltd., which is the administrator of the shareholder register.
3. Notification about the characters used for the addresses and names of shareholders
Following the implementation of the electronic share certificate system, for any Kanji characters used for the addresses and names ofshareholders that are not recognized in the book−entry transfer system used by the JASDEC Hofuri system, all or some of the characters will
be changed to characters or katakana symbols that are recognized by the JASDEC Hofuri system, and be registered accordingly on theshareholder register. We kindly request the understanding of shareholders if the characters in their address on any notifications sent havebeen changed to those recognized by the JASDEC Hofuri system. We advise shareholders to contact their securities company for any concerns
regarding the characters that are registered for their names and addresses.