MUTOH HOLDINGS CO., LTD.
(Former name: MUTOH INDUSTRIES LTD.)

60th (Fiscal Year 2008)
Financial Report
April 1, 2008 to March 31, 2009

TSE securities code: 7999

Basic Policy
Supporting today's business challenges withconstant innovations, sustained initiative

Consolidated Financial Highlights
Highlights of the Consolidated Accounts

Sales

and social contributions.

Net sales

Imaging & Information Business60th (FY2008) period:

We are pleased to bring you the financial report

Segment Information¥ 26,338 million

57th (FY2005) period:

58th (FY2006) period:

59th (FY2007) period:28,612million

28,752million

30,416million

for the 60th fiscal year.

Information Service Business
Real-Estate Leasing Businessand Other Business

L 60th (FY2008) period:

In the economic environment of the consolidated

Ordinary income

fiscal year under review, the financial instability

60th (FY2008) period:that emerged from the United States went into

1,481million

recession in the second half, as sharp declines in

2,068million

3,210million

19,516th60 (FY2008) period:¥ 604 million

th57 (FY2005) period: 58th (FY2006) period: 59th (FY2007) period:(982million)

1,073million

1,802million

Group S.A., a sales company having bases in
Scandinavian and Baltic countries and operating
there for many years, to expand bases and bolster
sales in the European market. Meanwhile, the3,553

3,268

Net income

stock prices and exchange fluctuations affected

In these circumstances, the Group acquired SE¥ 1,394 million

57th (FY2005) period: 58th (FY2006) period: 59th (FY2007) period:full−swing and assumed the aspect of a global

real economies more rapidly than anticipated.

¥26,338 million

L 59th (FY2007) period:

Total Assets
60th (FY2008) period:¥30,416 million¥ 28,301 million

57th (FY2005) period: 58th (FY2006) period: 59th (FY2007) period:

27,683million

29,723million

30,964million

3,698

3,786

Group promoted initiatives to expand sales andbolster operating foundations by strengthening

Net assets

variations on large−format inkjet printers.

60th (FY2008) period:

However, with the rapid shrinking of the market
because of the worldwide recession and violent

22,931¥ 18,880 million

57th (FY2005) period: 58th (FY2006) period: 59th (FY2007) period:

17,529million

18,744million

20,084million

exchange rate fluctuations, consolidated financial

L 58th (FY2006) period:

results were below the previous year levels.

¥28,752 million

Net sales stood at ¥26,338 million (down 13.4%
year on year), operating income was ¥951 million

3,403 3,145(down 68.5%), ordinary income was ¥1,394
million (down 56.6%), and net income was ¥604
22,204

million (down 66.5%).

CONTENTS

Consolidated Financial Highlights ........ 1

Forecast of results for the next fiscal yearOverview of Business Segments
Imaging & Information Business .......... 2
Information Service Business /Real-Estate Leasing Business andOther Business ........................................ 3
Topics ..................................................... 4
Financial Statements
Consolidated Financial Statements ...... 6
Stock Information .................................. 8
Company Profile / Directors .................. 9

Millions of yen

Forecast of consolidated
business results

Net sales

Operatingincome

Ordinary
incomeNet income

22,000

600

600

300

The worldwide recession that has been in full force since the previous year is called a"once−in−a−century" economic event, and the outlook for the economy remains very
uncertain.
Responding to the circumstances, the Group will continue to expand sales channels to
unexplored areas and to provide products from the perspectives of customers. Emphasizing
profit, the Group will meanwhile seek to cut costs. However, since the effect of the global
recession will remain throughout the year, the Group expects a more difficult businessenvironment than that seen in the previous fiscal year.

1Overview of Business Segments
Breakdown of net sales by region

74.1%

North America

Other regions

AsiaJapanEurope¥19,516 million

Imaging & Information Business
Overview
Amid the global recession, the Group posted results thatwere close to the year−ago level in the Asian and U.S.
markets, reflecting solid results in the first half. However, in
the Japanese and European markets, market contraction
and declining selling prices associated with slowing
economies and exchange fluctuations had a considerable
impact. As a result, net sales were ¥19,516 million (down14.9% year on year). Operating income was ¥493 million(down 81.1%).

Environment-responsive Ink for
Next-generation

Corrugated boardABS resin

Painting on inkjet materials—once unthinkable—
made possible

PET

Interior fixtures

MUBIO Ink is biomass ink that does not use petrochemical resources, 80%
or more of which consists of plant−derived ingredients. MUBIO Ink iscarbon neutral, since carbon dioxide generated from the incineration andtranspiration of the ink is absorbed in the process of the growth of theplants used as the raw materials for the ink. MUBIO Ink is next−generation,
environment−responsive ink that is effective in preserving fossil resources
and reducing carbon dioxide emissions.

Cycle of CO2 Carbon neutralAbsorption

Extraction
The ink breaks
down into
H2O and CO2
after evaporationand incineration

StarchGlucose
Lacticacid
Ethyllactate
Use as solvent

2Esterification

Saccharification

Fermentation

A refined biomass ink whichcontains 80% or more plant−
derived ingredients. Petrochemical
resources are not used wherever
possible.

Information Service Business
Overview

12.4%

We continued to expand sales in the domestic market, striving to develop new customers
in the Solution Service Business and endeavoring to sell in−house products in the CAD
Software Business. However, the business segment struggled with the worsening
employment conditions and weak investment appetites associated with the economic
slowdown. As a result, net sales were ¥3,268 million (down 13.7% year on year).
Operating income was ¥47 million (up 63.0%) reflecting cost reductions.

¥3,268 million
Expanding manufacturing potential through IT
In the Information Service Business, solutions
services in addition to mission−critical software
has grown increasingly important in recentyears.
In the present situation, Mutoh Itex Co.,
Ltd. is the core company supporting theSolution Service Business. Mutoh Itex
combines its expertise developed overmany years and broad lineup of service
systems with cutting−edge technologies,
to provide system solutions tailored tothe operations of customers.

New solutions

Web−based technology information
management systems

Web−based equipment maintenancemanagement systems

Creation and provision ofsystem solutions
ECO & solutions
Building networks andinfrastructure
Business applications
Embedded
Jigs, design, and production
Mechatronics
Robot control
Plant production control
Total control of plant production lines
Semiconductors
Semiconductor design
Layout design

Real-Estate Leasing Business and Other BusinessNet sales ratio by operation

13.5%

Real-estateleasing

OtherSports-care
products

Design drafting
equipment
Optical measuring
instruments¥3,553 million

Trace board

In the Real Estate Leasing Business, we began leasing idle
assets, and results were solid. Net sales were ¥792 million(up 8.6% year on year). Operating income was ¥425
million (up ¥32.5%). In Other Business, we sought toexpand operations and sales by launching environmental
products, including LED illuminator−related items.
However, the lackluster personal spending continued withthe economic downturn. As a result, net sales stood at¥2,760 million (down 7.0%). Operating income was ¥98
million yen (down 31.3%).

The Real−Estate Leasing Business and Other Business cover a wide
range of operations such as real−estate leasing, sports−careproducts, design−drafting equipment, and optical measuring
instruments.
In particular, MUTOH ENGINEERING INC. is promoting thedevelopment and sale of environmentally friendly LED illuminator−related products, complying with environment−related laws andregulations and other requirements, and considering the prevention ofenvironmental pollution.

LED illuminator-related products

Large projection boardOverview

Shelf lights

3Topics

FSC certificate obtained
MUTOH INDUSTRIES LTD. obtained the Chain of Custody (COC)
Certificate, one of the Forest Certificates given by the Forest
Stewardship Council (FSC).

What is FSC ?
FSC is a private-sector nonprofit organization
established by the representatives ofenvironmental organizations, forestry
businesses, and timber trading companies
in 1993.
The organization aims to promote forest
environment conservation and sustainable
forest management in the interests ofcommunities and the economy.

ForestPapermanufacturing

COC certificate number: SGS−COC−005625

A mechanism that enables participants
to indirectly protect forests worldwide
by purchasing FSC−certified products.

Consumers
Living with forests
Supplies for the Inkjet Plotter RJ Series

FSC−certified paper

As a manufacturer of plotters, MUTOH provides valuable products for customers, contributing to forest preservation.

4Topics

JR Shimosuwa Station

Fifth campaign (December 2008)

Billboard design
public participation campaign
In 2003, we launched a campaign to invite people
living, working, or attending school in Shimosuwa
Town, Nagano, as well as non−residents originallyfrom the town, to create a design to enhance thecommunity’s image. The selected design is displayed ona billboard in Shimosuwa Station to advertise the town.
The campaign started in 2003 and was run for the fifth
consecutive year (it was canceled in 2006, when thetown was damaged by heavy rains).
With the full support of MUTOH’s graphic printer, alarge billboard that is 2.5 meters high and 5 meters
wide was displayed.
MUTOH will continue to attach importance to ties with
its community.

Best designAwarding ceremony

Japan’s largest drafter

September 2008:Responding to the needs ofcustomers wishing to design
large machines in actual size
such as automobiles, wemanufactured and delivereda drafter that is 5.4 meters
wide, making it the largest inJapan.
MUTOH ENGINEERING INC.

Largest in Japan (5.4m wide)

The cover and thedrawing table are also
the largest in Japan.

5

Financial Statements

Consolidated Financial Statements■ Consolidated Balance Sheets(Millions of yen)

(Millions of yen)

As of March 31, As of March 31,
2009
2008

As of March 31, As of March 31,
2009
2008
Liabilities

AssetsCurrent liabilities
Current assets

Cash and bank deposits

16,583

19,586

4,960

6,167

5,472

7,359

Notes and accounts payable

2,897

4,361

Short-term debt and current
portion of long-term debt

249

—

2,324

2,997

Long-term liabilities

3,949

3,520

Long-term debt

340—

Others

3,608

3,520

Total liabilities

9,421

10,880Shareholders’ equity

19,921

19,982

Common stock

10,19910,199

Capital surplus

4,182

4,182

Retained earnings

7,843

7,239

Treasury stock(2,303)(1,638)(1,600)(444)

Minority interests

558

546

Total net assets18,880

20,084

Total liabilities and net assets

28,30130,964

Others
Notes and accounts receivable

4,742

6,063

Inventories

6,095

6,274

Others785

1,081

Fixed assets

11,718

11,377

Tangible fixed assets

9,533

9,632

Intangible fixed assets

857

136

Investments and other assets

Investment securities

1,326

1,609

576

821

Others749

788

Total assets

28,30130,964

Net assets

Valuation and translation adjustments■ Consolidated Statement of Changes in Net Assets (From April 1, 2008 to March 31, 2009)(Millions of yen)

Valuation andShareholders' equity
translation
Common stock Capital surplus Retained earnings Treasury stock Total shareholders' equity adjustments
Balance as of March 31, 2008

10,199

4,182

7,239

(1,638)19,982(444)

Minority
interests

Total net
assets546

20,084

Changes during the period
Net income604

Acquisition of treasury stock
Disposal of treasury stock

0604

604

(665)

(665)

(665)

000

Net changes of items other thanshareholders’ equity during the period
Total changes during the period
Balance as of March 31, 2009

6(1,155)

11(1,143)—0604(664)(60)(1,155)

11(1,204)

10,199

4,182

7,843

(2,303)19,921(1,600)558

18,880Consolidated Financial Statements■ Consolidated statements of income(Millions of yen)

Year ended
March 31, 2009

Year ended
March 31, 2008

Ordinary income or loss
Net sales

26,33830,416

Operating income

951

3,022

Ordinary income

1,394

3,210

1,176

3,180

604

1,802

Trends of net sales (Millions of yen)
The 58th
period28,752The 59th
period30,416

The 60th
period26,3380

10,00020,00030,000Extraordinary income or loss
Income before income taxes and minority interests

Trends of operating income (Millions of yen)
Net income

The 58thperiod

1,962

The 59thperiod■ Consolidated statements of cash flows(Millions of yen)

Year ended
March 31, 2009

The 60th
period

1,108

2,531

Net cash from investing activities

(965)

(459)

Net cash from financing activities(951)(1,764)

Effect of exchange rate changes on cash and cash equivalents

(397)

(164)

Net increase (decrease) in cash and cash equivalents(1,207)143

Cash and cash equivalents at beginning of period

6,167

5,819

—204

4,960

6,167

951
0Year ended
March 31, 2008

Net cash from operating activities

3,022

1,000

Cash and cash equivalents at end of period

3,000

Trends of ordinary income (Millions of yen)
The 58th
period2,068

The 59thperiod

3,210

The 60th
period1,3940Increase in cash and cash equivalents due tomerger of consolidated subsidiaries

2,000

1,000

2,000

3,000

Trends of net income (Millions of yen)
The 58th
period■ Consolidated subsidiaries in each business segment
Business segment

Company names

MUTOH INDUSTRIES LTD., MUTOH ENGINEERING INC.,
Imaging & Information
Business

1,073

The 59th
period1,802

The 60thperiod60405001,0001,5002,000

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

Information ServiceBusiness

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

Real-Estate LeasingBusiness

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

Other Business

MUTOH ENGINEERING INC., MUTOH ENTERPRISES LTD.

MUTOH ENTERPRISES LTD.

7

Stock information (As of March 31, 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■ Number of shares per unit

1,000

Shareholders

Units held

Percentage ofvoting rights■ Number of shareholders

4,499

TCS HOLDINGS CO., LTD.

13,20028.68

Note: Above Percentage of voting rights is calculated exclusively the treasury stock(8,795,920 shares).

■ Breakdown of shareholders
Securities companies
0.64%
30

■ Breakdown by the number of shares held
Foreign companies
5.29%
46

5 or more
2.72%
248

1 or more
6.72%
2,211

10 or more
6.85%
214

50 or more
4.91%
40

Financialinstitutions
16.34%
28

Other companies
46.73%
246

8

1 or less
0.82%
1,756

Individuals and others
31.00%
4,149

100 or more
6.63%
15

500 or more
6.07%
51,000 or more
65.28%
10

Company Profile (As of March 31, 2009)
Name:

MUTOH HOLDINGS CO., LTD.

Established:

March 5, 1952 (founded: December 1942)

Common stock:

10,199 million yen

Head office:No.5 TOC Building, 21-1, Nishi-Gotanda,
7-chome, Shinagawa-ku, Tokyo 141-8683
Tel: 03-5740-8700

Website address:

http://www.mutoh-hd.co.jp/

Main business:

Management and assets management ofthe Group companies

MUTOH group companies
MUTOH INDUSTRIES LTD.
Development, manufacturing, and sales of imaging- andinformation-related equipment and information services(CAD/CAM)
MUTOH ENGINEERING INC.
Repair and maintenance of imaging- and informationrelated equipment, etc.
MUTOH ENTERPRISES LTD.
Sports-care product sales / management of retail outlets
for books, Stationery, etc.
MUTOH ITEX Co., Ltd.
System integration services / application softwaredevelopment
MUTOH AMERICA INC.
Sales of imaging- and information-related equipment
MUTOH EUROPE nv
Development, manufacturing and sales of imaging- andinformation-related equipment
MUTOH DEUTSCHLAND GmbH
Sales of imaging- and information-related equipment
SE Group S. A.
A corporate group selling imaging and informationequipment

Directors (As of June 26, 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 31Interim Dividend Record Date:

September 30

Public Notices:

Public notices shall be made on the Company’s website (http://www.mutoh-hd.
co.jp).
*In case the public notices is not available on the Company’s website due tounavoidable reasons, such notices shall be made on the Nihon Keizai Shinbun

Administrator of Shareholders 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
Stock Transfer Agency Department:

The Chuo Mitsui Trust and Banking Company, Ltd.
8-4 Izumi 2-chome Suginami-ku, Tokyo 168-0063
Tel. 0120-78-2031 (toll-free)
Stock transfer agent services are provided at branch offices in Japan of The Chuo
Mitsui Trust and Banking Company, Ltd. and the Head Office and branch offices
in Japan of Japan Securities Agents, Ltd.

Notes:
1. Request for changes of addresses, purchasing shares constituting less than one unit, and selling shares to constitute one unit
Please make a request to a 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 a request to The Chuo
Mitsui Trust and Banking Company, Ltd., an account management institution of special account.
2. Payment of accrued dividends
Please make a request to The Chuo Mitsui Trust and Banking Company, Ltd., which is the administrator of the shareholder register.

This report is printed on recycled paper with soy ink.