62nd(Fiscal Year 2010)
1st Half
Financial Report
April 1 to September 30, 2010

MUTOH HOLDINGS CO., LTD.

TSE securities code : 7999

Message

Basic Policy

President

Nobumasa Hayakawa

We would like to express our sincerest
gratitude to all of the shareholders who haveWith constant innovation
continued to support us.
We hereby present our 62nd (Fiscal Yearand challenging
2010) 1st Half Financial Report.
ourselves,
In the first half of the current consolidated
we contribute to society
fiscal year, the Group was able to post profitsthat exceeded initial projections. This was
accomplished by the introduction of new products, the reinforcement of sales
channel expansion in foreign markets, and the deployment of active measures
such as the implementation of business restructuring within the Group, as well
as by the continued expansion of activities to reduce initial costs and measures
to cut back on expenses.
We will continue to conduct business aggressively in our aim to reachprojections for the full fiscal year.
We hope that we can rely on your continued understanding and support.

B u s i n e ss Situation a nd Ou t c o m es
Looking at the economic environment during the first half of the current consolidated fiscal year, although the emerging
nations of Asia, in particular China, maintained solid growth, in the advanced nations such the U.S. and the European
nations concerns about the effect of the unstable financial system and the worsening employment situation still remain.
Recently in Japan, the impact of the foreign exchange environment has increased the uncertainty surrounding future
corporate performance, and the economy has not fully recovered yet.
Against this background, for the MUTOH Group’s core product, the large-format printer “ValueJet” series, the “ValueJet
TD Series” was introduced at the beginning of the period in response to a variety of needs including sign displays, the flagand banner industry, and the apparel field. In addition, a spectrophotometer that can significantly reduce color
management work, the “VJ-1608HS” equipped with “SPECTROVUE VM-10”, was announced in September as we
strengthened our product lineup. We made efforts to optimize the efficiency of business within the Group and worked
towards improving our earning power by continuing to focus on expanding our sales network and strengthening ourbrand in foreign markets, while in the domestic market, we consolidated the Maintenance Business with MUTOH
INDUSTRIES and the CAD Business with MUTOH ENGINEERING.
Looking at the consolidated business performance for the first half of the current fiscal year emerging from thesecircumstances, net sales stood at ¥11,417 million (up 8.6% year-on-year), operating income was ¥775 million (compared
to a loss of ¥2 million year-on-year), ordinary income was ¥553 million (compared to a loss of ¥34 million year-on-year),and net income was ¥545 million (compared to a loss of ¥269 million year-on-year), for an increase in income and profit
year-on-year.
The MUTOH Group as a whole is pursuing business strategies that will enable us to resume dividend payments and to
make them consistently at the earliest possible juncture.
Until then, we ask for the understanding of our shareholders in this respect.

1

Consolidated Financial Highlights
Consolidated net sales
62nd (FY2010) 1st Half period:

1st Half¥11,417 million

59th (FY2007) period:

60th (FY2008) period:

61st (FY2009) period:

30,416 million
16,092 million

26,338 million
14,997 million

21,997 million
10,513 million

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

Consolidated operating income
62nd (FY2010) 1st Half period:

1st Half¥775 million

59th (FY2007) period:

60th (FY2008) period:

61st (FY2009) period:

3,022 million
2,135 million

951 million
1,300 million

354 million(2) million

L 62nd (FY2010) period:¥11,417 million
900 1,263

Consolidated ordinary income
62nd (FY2010) 1st Half period:

1st Half

60th (FY2008) period:

61st (FY2009) period:

3,210 million
2,149 million

1,394 million
1,621 million

325 million(34) million

9,253

L 61st (FY2009) period:

Consolidated net income¥545 million

62nd (FY2010) 1st Half period:

1st Half¥553 million

59th (FY2007) period:

59th (FY2007) period:

60th (FY2008) period:

61st (FY2009) period:

1,802 million
1,141 million

604 million
924 million

217 million(269) million¥10,513 million
1,003

1,647

7,862

Consolidated gross assets
62nd (FY2010) 1st Half period:¥28,370 million

59th (FY2007) period:

60th (FY2008) period:

61st (FY2009) period:

30,964 million

28,301 million

28,789 million

Consolidated net assets
62nd (FY2010) 1st Half period:

L 60th (FY2008) period:¥14,997 million¥19,040 million

59th (FY2007) period:

60th (FY2008) period:

61st (FY2009) period:

20,084 million

18,880 million

19,018 million

1,775 1,842

11,380

Forecast of results for the full fiscal year
(Millions of yen)

Forecast of consolidated
business results

Net sales

OperatingincomeOrdinary
incomeNet income

26,000

1,200

1,100

650

In terms of consolidated business results, thanks to the vigorous sales promotion activities and measures to reduce
overhead costs, profit levels that exceeded projections were achieved during the first half of the current fiscal year.
On August 10 2010, there was an upward revision of the original results forecasts, and afterwards another upwardrevision was conducted on November 4. However, while the global economy is slowly recovering, under the current
conditions economic uncertainty is due to factors such as the high yen, and this situation continues for the markets
the Group participates in. Because future economic trends must be observed within this environment, we maintainthe figures announced on August 10 for the full-year forecast.

2Overview of Business Segments
In the Imaging and Information Equipment Business,sales steadily grew in the Asia region against thebackground of a strong economic environment. In

Imaging &Information
Equipment
Business

81.0%

addition, while a full recovery has not been achieved
yet, performance was solid in North America andEurope due to economic recovery, the introduction of¥9,253million

new products, and the implementation of measures
to increase sales. As a result, we posted net sales of¥9,253 million and an operating income of ¥833
million.

In the Information Service Business, while companies
are beginning to have fewer inhibitions towards IT
investments, their stance continues to be cautious.

7.9%
Information
ServiceBusiness

This sector recorded net sales of ¥900 million, and an
operating profit of ¥19 million was posted thanks to
improved business efficiency after a business transfer¥900million

and the effect of ongoing cost improvements.

In the Real Estate Leasing Business, sales of ¥413
million and operating income of ¥228 million wererecorded thanks to steady lease continuation, as in

Real-Estate
Leasing
Business and
Other
Businesses

11.1%

the previous fiscal year. Other Business sectors wereaffected by the slow recovery of the domestic market,
and a difficult situation continued for exercise¥1,263million

accessories aimed mainly at individuals and design/drafting equipment. Sales stood at ¥850 million, with
an operating loss of ¥77 million.

3

“VJ-1608HS” hybrid large-format printer launched
The VJ-1608HS is a hybrid large-format printer that uses new,eco-friendly (50% vegetable-derived) multi-purpose ink andcomes equipped with a spectrophotometer developed
in-house, the “SPECTROVUE VM-10”.
In addition to marking film, tarpaulin, and otherconventional print media for outdoor advertising, the printersupports a variety of media, from non-coated PET andsynthetic paper to foam board and other board material,
such as corrugated plastic and cardboard.

Sample printing application:cardboard
Hybrid large-format printer ‘VJ-1608HS’

Spectrophotometer‘SPECTROVUE VM-10’

Sample printing application:ABS plastic“SooMit” web conferencing management system developed
SooMit overview
SooMit is a web conferencing management system.
Incorporating groupware features developed by MUTOH
ITEX and management functionality through add-ons, thesystem was developed from Kyoto-based SOBA Project's“SOBA mieruka” by MUTOH ITEX.
Users can prepare web conferencing schedules, manageinternal conference programs and participants, notify
participants, and manage each person's conference schedule.
SooMit makes web conferencing systems more intuitive andeasier to use.

Web conferencing management system‘SooMit’TV conferencing system‘Soba mieruka’“Cool Light” next-generation LED bar lighting
Offering excellent color rendering, new “Cool Light” LEDshelf lighting generates minimal heat, thanks to its low
energy consumption.
The advantages of LED lighting include a longer useful life,
better energy efficiency, smaller size (supporting resource
conservation), and mercury-free construction, which greatly
reduces environmental impact. Lighting designed forsuperior color rendering brings out
Appearance under regularposter colors, avoiding the cool bluish
LED lighting
cast seen under regular LED lighting, topreserve the original appearance.
LED shelf lighting‘Cool Light’

Appearance under color-rendering LED lighting

4Topics
Fortifying overseas sales bases in the Americas
North America

Chicago Branch

As with Europe, North America represents a key
market, and MUTOH AMERICA has reorganized
its territory.
By maintaining headquarters in Phoenix andoffices in Los Angeles, Chicago, and Boston, we
can conduct carefully focused sales activities nearcustomers to promote sales and services, paving
the way for new dealers and other development.

Los Angeles BranchPhoenix Headquarters

Boston BranchSouth America:Brazil
In July 2010, MUTOH INDUSTRIES concluded an agency agreement witha leading Brazilian signage equipment distributor.
With the distributor, we made an impressive appearance at ‘Serigrafia
Sign 2010’, a trade show held June 21–24 in São Paulo, to mark ourfull-fledged entry into the fast-growing South and Central American
market.

Staff at the distributor booth, with MUTOH employees

5

On the trade show floor

“ValueJet” makes a splash at COP 10, October 18–29, 2010
Near the COP 10 venue

COP 10—the Tenth Ordinary Meeting of theConference of the Parties to the Convention
on Biological Diversity, held in Nagoya, Aichi
prefecture—set the stage for some 93 panels printed
by MUTOH “ValueJet” large-format inkjet printers (VJ1608HJ).
Printers using eco-friendly ink with significantly fewer
oil-based substances produced many posters, from theofficial poster (titled Life in harmony, into the future)
to photos of endangered plants and animals.
Use of biomass ink with a lighter environmental
footprint reduces CO2 emissions, which can help curb

Example of the panels displayed

climate change.
Panels at the G8 Hokkaido Toyako Summit in 2008
were also produced with “ValueJet” printers, andthe recent contribution at COP 10 sends a strong
message linking MUTOH WITH ENVIRONMENTALPERFORMANCE.

Internal transfer of business operations in July 2010
Reinforcing domestic sales and service, enhancing customer satisfaction
Transfer of “Printer Maintenance Business” from
MUTOH ENGINEERING to MUTOH INDUSTRIESMUTOH ENGINEERING INC.

Maintenance Business

MUTOH INDUSTRIES has now established a comprehensive
infrastructure for large-format inkjet printers, fromdevelopment, production, and sales to maintenance.
This framework better enables us to launch new products
in line with changing customer needs and allows us to offera reliable service network.
››› Aiming to enlarge our market share and enhancecustomer satisfaction

Transfer of “CAD Business” from
MUTOH INDUSTRIES to MUTOH ENGINEERINGCAD Business
MUTOH INDUSTRIES LTD.

MUTOH ENGINEERING demonstrates expertise in the fieldof education through production of drafters and otherdesign and drafting equipment.
To achieve greater business synergy, we are expanding
efforts in this and related fields to cultivate CAD Businesssales channels focused on the manufacturing sector.
››› Leveraging broad-based expertise gained in design/drafting equipment business to provide optimal
customer design environments

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

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

2010

2009

As of March 31,
2010

AssetsCurrent assets

Cash and bank deposits

Notes and accounts
receivable

Inventories

OthersFixed assets

Tangible fixed assets

Intangible fixed assets

Investments andother assets

Investment securities

7(Millions of yen)

Period As of September 30, As of September 30,

As of March 31,
2010

2010

2009

5,453

4,419

5,656

Notes and accounts
payable

3,296

2,192

3,375

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

104

219

115

2,052

2,007

2,164

Long-term liabilities

3,876

4,082

4,114

Long-term debt

261

354

309

Others

3,615

3,727

3,805

Total liabilities

9,330

8,501

9,770

Shareholders’ equity

20,682

19,65020,137

Common stock

10,19910,19910,199

Capital surplus

4,182

4,182

4,182

Retained earnings

8,607

7,574

8,061

Treasury stock(2,306)(2,305)(2,305)

Valuation andtranslation adjustments(2,256)(1,501)(1,713)

Minority interests

615

580

594

Total net assets

19,04018,72919,018

Total liabilities and net assets

28,37027,23028,789Account

Liabilities
17,541

8,004

4,027

4,912

596

15,652

6,231

4,132

4,978

310

17,508

7,449

4,568

674

11,578

11,281

8,889

9,382

9,134

1,283

608

814

1,381

713

Others4,815

10,829656

Current liabilities

741

Net assets

1,405

714

Others

675

668

691

Total assets

28,37027,23028,789

■ Consolidated statements of income(Millions of yen)

Period 1st Half period ended

September 30, 2010

Account

1st Half period ended Year ended March 31,
September 30, 20092010

Trends of net sales (Millions of yen)

11,417

10,513

21,997

The 60th
periodOperating income (loss)

775

(2)

354

The 61st
periodOrdinary income (loss)

553

(34)

325

Net sales

14,997
26,33810,513
21,997

The 62nd
periodIncome before income taxes andminority interests

655

16

418

Net income (loss)

545

(269)

217

1st half year

Full fiscal year

11,4170

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, 2010

Account(Millions of yen)

1st Half period ended Year ended March 31,
September 30, 20092010

Net cash from operating activities

1,036

1,503

2,979

Net cash from investing activities

(21)

(139)

(241)

Net cash from financing activities

(39)

(45)

(189)

Effect of exchange-rate changes oncash and cash equivalents

(377)

(47)

(101)

Net increase (decrease) in cash andcash equivalents

597

1,270

2,446

1,300

The 60th
period951-2

The 61st
period354

The 62nd
period

775

-500

0

500

1,000

Cash and cash equivalents at end of period

8,004

4,960

4,960
-34

The 61st
period6,231

1st half year

1,621
1,394

The 60th
period

7,407

1,500

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

Cash and cash equivalents at
beginning of period

1st half year

325

7,407
The 62nd
period
-500

553
0

500

1,000

1,500

2,000

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

Company names

Imaging & Information
Equipment Business

MUTOH INDUSTRIES LTD., MUTOH ENGINEERING INC.,
MUTOH Belgium nv, MUTOH Deutschland GmbH,
MUTOH AMERICA INC., Sesoma - Sericomex Group,
MUTOH HONG KONG LIMITED,MUTOH SINGAPORE PTE LTD., MUTOH AUSTRALIA PTY LTD.

Information Service
Business

MUTOH ITEX Co., Ltd., MUTOH ENGINEERING INC.,
MUTOH INDUSTRIES LTD. (until Jun 2010)

Real-Estate Leasing
Business

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

Other Business

MUTOH ENGINEERING INC.,
MUTOH ENTERPRISES LTD.

Full fiscal year

1st half year924

The 60th
period604-269

The 61st
period217

The 62nd
period
-500

545
0

500

1,000

(Note) In May 2010, MUTOH EUROPE nv changed its name to MUTOH Belgium nv.
(Note) The CAD Business had been transferred from MUTOH INDUSTRIES to MUTOH ENGINEERING as of July
2010.

8

Company Profile (As of September 30, 2010)
Name:

MUTOH HOLDINGS CO., LTD.

Established:

March 5, 1952

MUTOH group companies
Domestic Subsidiary Companies(founded: December 1942)• MUTOH INDUSTRIES LTD.

Common stock:

10,199 million yen• MUTOH ENGINEERING INC.

Head office:No.5 TOC Building, 21-1, Nishi-Gotanda,
7-chome, Shinagawa-ku, Tokyo 141-8683
Tel: +81-3-5740-8700• MUTOH ENTERPRISES LTD.
• MUTOH ITEX Co., Ltd.
Overseas Subsidiary Companies

Main business:

Management and assets management of
the Group companies

Website address:

http://www.mutoh-hd.co.jp• MUTOH AMERICA INC.
• MUTOH Belgium nv• MUTOH Deutschland GmbH• Sesoma − Sericomex Group• MUTOH HONG KONG LIMITED• MUTOH SINGAPORE PTE.LTD.
• MUTOH AUSTRALIA PTY.LTD.

Directors (As of September 30, 2010)

9

Masanori Takayama

Chairman of the Board

Masanobu Takeda

Full-time Auditor

Nobumasa Hayakawa

President

Hiroki Nakano

AuditorYuji Yata

Director

Nobuaki Kunimine

Auditor

Arthur Vanhoutte

Director

Yoshiyuki Takayama

Director

Stock information (As of September 30, 2010)■ Number of shares issuable

170,000,000■ Number of shares issued

54,818,180■ Number of shares per unit

1,000

■ Number of shareholders

4,315■ Major Shareholders
Number of
Ratio of
Shares Held Shareholding(Shares)(%)

Name
TCS Holdings Co., Ltd.

13,220,000

28.74

Mutoh Holdings Trading Partners
Shareholding Association

2,875,958

6.25

Hiroshi Mutoh

2,217,514

4.82

Mizuho Bank, Ltd.

2,121,399

4.61

Eiji Mutoh

1,800,586

3.91

Japan Trustee Services Bank, Ltd.
(Trust placed in Chuo Mitsui Asset Trust andBanking Company, Limited and Trust Accountof CMTB Equity Investments Co., Ltd)1,457,000

3.17

The Chase Manhattan Bank N. A. London
S. L. Omnibus Account

1,126,000

2.45

The Master Trust Bank of Japan, Ltd.
(Trust Account)

998,000

2.17

Ikuko Mutoh

888,603

1.93

Japan Trustee Services Bank, Ltd. (Trust Account)

803,000

1.75(Note) 1. The Company holds 8,817,076 shares of treasury stock, which is
excluded from the major shareholders listed above.
2. The ratio of shareholding is calculated after excluding treasury stock.

◆ Breakdown by the number of shares held

◆ Breakdown of shareholders
Securities companies
0.56%
23

Foreign companies
4.75%
54

5 or more
2.88%
261

1 or more
6.28%
2,066

10 or more
8.00%
232

Less than 1
0.79%
1,680

50 or more
4.70%
37
Financial
institutions
15.20%
32
Other companies
47.14%
241

Individuals and others
32.35%
3,965

100 or more
8.85%
26

500 or more
7.14%
51,000 or more
61.36%
8

10

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.