TSE securities code : 7999

65th (Fiscal Year 2013)
Financial Report

April 1, 2013 to March 31, 2014

MUTOH HOLDINGS CO., LTD.

M e s s age to Sha re hold er s
We would like to express our sincerest gratitude
to all of the shareholders who have continued tosupport us.
We hereby present our 65th (Fiscal Year 2013)
Financial Report, covering the MUTOH Group'sbusiness performance and activities.
President

Nobumasa Hayakawa

Basic Policy
With constant innovationand challenging
ourselves,
we contribute to society

B u s i ne ss Situation a n d Ou t c o m es
Overall economic conditions were positive during the current consolidated fiscal year as a gradual recovery trend in the UScontinued, there were signs of economic recovery in Europe, and China and other emerging countries in Asia continued togrow, albeit at a decreased pace.
Against this background, sales were strong for our core large-format inkjet printer products, particularly in Europe and theUS, as a result of improvements in the market environment, continued product development and cost reductions, andstrengthened sales activities at business locations overseas and in Japan.
In particular, in the US our large-format inkjet printer "VJ-1638" won the "Product of The Year Award" at the SGIA Show(the industry's largest exhibition in the US) for the second consecutive year, reflecting the market's positive reception of
our products.
For 3D printers that have gained much attention as the bearers of the new industrial revolution, MUTOH has developed aone-stop system for the broad 3D printer product line that it handles (3D Systems (US) products) from personal toprofessional printers as a company capable of providing full support to customers from hardware to service and support.
MUTOH also started providing an output service including mold samples and completion forecast models for companies in
September. Furthermore, during the second half of the year, MUTOH utilized its product know-how to develop the "Value
3D Magix MF-1000" 3D printer for personal use and commenced manufacturing and sales from January. By adding ourown products to the 3D printers manufactured by 3D Systems, we will work to support an even broader range of userneeds and expand sales even further.
In terms of our business performance, both sales and profits increased year on year. This was due to measures including
continued strengthened sales activities, cost reductions, and improvements in the MUTOH Group’s business environment
such as the gradual improvement in the US economy and the depreciation of the yen in the forex environment.
As a result of these factors, in terms of the consolidated business performance for the fiscal year under review, net sales
stood at ¥23,115 million (up 28.5% year on year) and operating income came to ¥1,630 million (up ¥1,490 million year
on year). Meanwhile, due mainly to the posting of a foreign exchange gain of ¥417 million on foreign currencydenominated assets as a result of yen depreciation, ordinary income increased to ¥2,014 million (up 181.6% year onyear). As a result of the recording of a negative income tax adjustment of ¥1,165 million accompanying the posting ofdeferred tax assets, net income of ¥2,399 million was recorded for the fiscal year (up 816.5% year on year).
The Company has decided to increase dividends by ¥2 and distribute year-end dividends of ¥5 per share to ourshareholders, in appreciation of their support to date.
We would like to request your continuing support of the Company in years to come.

1

Consolidated Financial Highlights
Consolidated net sales
65th (FY2013) period:

62nd (FY2010) period:

21,920million¥23,115 million

63rd (FY2011) period:

20,441million

64th (FY2012) period:

Business Segment
Net Sales (Millions of yen)
Imaging & Information Equipment Business

17,982million

Information Service Business
Real-Estate Leasing Business and Other Business

Consolidated operating income
65th (FY2013) period:

62nd (FY2010) period:

1,202million

63rd (FY2011) period:

653million

Consolidated ordinary income
65th (FY2013) period:

62nd (FY2010) period:

962million

1,306million

65th (FY2013) period:

800million(425)million

65th (FY2013) period:

62nd (FY2010) period:

28,462million

27,028million

65th (FY2013) period:

62nd (FY2010) period:

19,459million

140million

2,154 2,098

18,86264th (FY2012) period:

715million● 64th (FY2012) period:

64th (FY2012) period:¥17,982 million

261million
1,960¥32,953 million

63rd (FY2011) period:

Consolidated net assets¥23,115 million

64th (FY2012) period:¥2,399 million

63rd (FY2011) period:

Consolidated gross assets● 65th (FY2013) period:¥2,014 million

63rd (FY2011) period:

Consolidated net income (loss)
62nd (FY2010) period:¥1,630 million

64th (FY2012) period:

27,363million

14,171¥21,466 million

63rd (FY2011) period:

18,601million

1,850

64th (FY2012) period:● 63rd (FY2011) period:

19,170million¥20,441 million
1,865

2,143

16,431

Projections for the next period(Millions of yen)

Consolidated
projections

Net sales

OperatingincomeOrdinary
incomeNet income

25,000

1,000

1,000

2,500

Figures announced
on May 15, 2014.

While there are still concerns about future economic trends such as the monetary crisis in Europe and the slowdown
in the economic growth rate of emerging economies, the economies of developed countries are improving, as
typified by the recovery in the US economy and the improvement in the European economy.
Within this environment, the MUTOH Group aims to increase sales by actively developing and introducing newlarge-format printer products in the market in its core Imaging and Information Equipment Business, providing newservices with 3D printers, and expanding the 3D printer product lineup that includes 3D Systems products and its
own products.

2

Overview of Business Segments
In Asia, due to factors such as strong sales to China and otheremerging countries and strong domestic sales of 3D printers, net
sales and operating income stood at ¥8,876 million (up 28.9% year

Net Saleson year) and ¥994 million (up 269.5% year on year), respectively.
In North America, due to factors such as aggressive sales activities,
the recovery of the US economy, and the effect of yen depreciation,
net sales and operating income stood at ¥3,333 million (up 45.4%
year on year) and ¥175 million (up 426.8% year on year),respectively.
In Europe, as a result of strong sales to Turkey and countries in
Eastern Europe and the effect of yen depreciation, net sales andoperating income of ¥6,652 million (up 33.3% year on year) and¥423 million (compared with an operating loss of ¥231 million in
the same period last year) were respectively recorded.

9.3%

In the Information Service Business, earnings increased in the CAD
business and systems solutions service business, thanks to factors
including ongoing efforts to strengthen sales capabilities, demand
for replacement buys following the termination of support for
Windows XP, and the last-minute rise in demand before theincrease in the consumption tax. As a result, net sales andoperating income stood at ¥2,154 million (up 9.9% year on year)and ¥223 million (up 50.0% year on year), respectively.

81.6%
Imaging &Information
Equipment
Business

Information
ServiceBusiness¥18,862million

Net Sales¥2,154million

9.1%
Real-Estate
Leasing
Business and
Other
Businesses

3

Net Sales¥2,098million

In the Real Estate Leasing Business, due to an improvement in
operating rates, net sales and operating income stood at ¥356
million (up 10.3% year on year) and ¥237 million (up 4.3% year onyear), respectively.
In Other Business, while net sales of ¥1,742 million (up 14.1% year
on year) were recorded as a result of aggressive sales activities for
LED lighting that applies inkjet printing technologies to LGP (Light
Guide Panel), an operating loss of ¥101 million (compared with anoperating income of ¥0 million in the same period last year) wasrecorded as a result of an increase in selling, general andadministrative expenses and the recording of a valuation loss anddisposal loss on sports support product inventories.

Pattern-cutting plotter for the apparel industry
Launch of the "VC-A1000"
The pattern-cutting plotter "VC-A1000" for apparel pattern making isequipped with an automatic empty ink cartridge detection feature andsupports use with commercially available ballpoint pens. The ease ofvarious operations has been improved and this new product provides greatvalue-for-money (VFM).
The main features are as follows.
Automatic empty ink cartridge detection
Automatic pen (pen, cutting) switchingThree pressure rollers and three-stage pressure
Auto-cut-off function (sheet-off unit)
Maximum cut pressure of 600g
Maximum cutting width of 1,016mm
Roll media can be fitted to the front
Standardly equipped with three types of interface
Commercially available ballpoint pens up to a diameter of 12mm can be used as is"VJ-A1000"
Pattern-cutting plotter for the apparel industry

Launch of a 3D dress-up figure print service
The 3D dress-up figure print service "Figure World" is an innovative new service
in which the user uses a high-speed scanner to scan their entire face inapproximately 10 seconds, and the resulting 3D data is then sent to theadjacent PC, allowing them to select their own clothing, hairstyle, and body size
and then place an order for a 3D solid dress-up figure.
With this system, after the order has been completed and the data converted
into output data, it is sent to a large 3D printer at MUTOH's output center, thefigure is manufactured and then sent to the customer by post.
The high-speed scanner and PC set will be leased out to agencies that haveobtained the sales rights for this system.

Costumechange table

Hairstyle and color
change table"Figure World"
Examples of a modeling display and figures

Release of the "Liner Board UT-06"
portable parallel ruler liner board
The portable A2-size "Liner Board UT-06" has been released as a multi-function,
thin, lightweight and compact parallel ruler for the examination for class-1 and-2 architects. It provides full support for both daily practice and important
exams.
The main features are as follows.
Portable and lightweight at 2.5kg
Allows comfortable diagramming with a nonskid sponge and rubber
supports
Scale grip that prevents fatigue and blemishes
Scale floating mechanism that prevents sketch blemishes
Break mechanism that allows the scale position to be fixed freely
Drawing board angle can be set at 1°, 5°, and 10°

An original carrying bag comes withthe "Liner Board UT-06"

4

Topics
Sales launch of UV inkjet printers
Simultaneous launch of the desktop "VJ-426UF" and the large-format "VJ-1626UH"
In June 2014, we launched sales of two new UV inkjet printer models that use UV ink that curesthrough UV-ray irradiation, the desktop "VJ-426UF" (¥2.38 million before tax) and the large-format"VJ-1626UH" (¥4.48 million before tax).
The "VJ-426UF" is a flat-bed model that supports A3-ledger size with acompact size for when space is at a premium.
Utilizing the characteristics of UV ink that allows for printing withvarious materials, this printer is optimal for on-demand printing insmall lots for a variety of products for the gift and novelty industry andhigh-demand commercial printing applications.
The main features are as follows.
Compact flat-bed model that supports A3-ledger size
 quipped with an LED-UV lamp that achieves power savings andEenhanced life

"VJ-426UF"
UV inkjet printer wo types of ink combinations available: four-color (C/M/Y/K) andT
six-color (C/M/Y/K + white and varnish) upports a high-quality mode with 1,440×1,440dpi for highSdefinition-printing applications
 tandardly equipped with a Windows printer driver that makes it
Seasy to print from Office software such as Word, Excel, and PowerPoint tandardly equipped with software that facilitates highly expressiveSlayer printing using the driver mentioned above

The "VJ-1626UH" is large-format printer that supports widths up to
64 inches and provides great value-for-money, as it is suited for direct
printing on board media such as aluminum composite panels, acrylic
board, and cardboard, as well as roll media such as vinyl chloride andtransparent film.
The main features are as follows.
 ybrid model that supports widths up to 64 inches (1,625mm) andH
is suited not only for roll media, but also board media up to 15mm
thick and weighing up to 15kg
 quipped with an LED-UV lamp that achieves power savings andEenhanced life wo types of ink combinations available: four-color (C/M/Y/K) andT
six-color (C/M/Y/K + white and varnish) ubber material used in media-conveying roller to improve theRboard media conveyance capacity and durability he spectrophotometer "SPECTROVUE VM-10" (optional) isTsupported, enabling easy and efficient color management

5"VJ-1617H"
UV inkjet printer'Made in Japan' personal 3D printerThe dual-head "MF-2000" launched to follow "MF-1000"
MUTOH’s personal 3D printer "MF-1000" (¥200,000 before tax) was released in January 2014 to a very
positive reception. Sales of the follow-up model, the dual-head "MF-2000" (¥450,000 before tax),
began in May 2014.
Minimum
lamination
0.05mm(50μm)

High-rigidity bodythat achieves
highly accurate
forms

High
reproduction
abilities for highresolution

Equipped withheated printing
table

Equipped withdouble coolingfans

Z-axis doublecarry table

ABS&PLA
Myriad color
filament

Filament
diameter
1.75&3mm

Open-reelmethodReassuringsoftware thatprovides Japanese
language support

A wide varietyof parametersettings available

Full support
service"MF-1000""MF-2000"
Dual-head
Printing area
300mmx300mmx300mm
Maximum area achieved inpersonal 3D printer !

Printing area
200mmx200mmx170mm
Entry-level Model"MF-1000""MF-2000"

6

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

Period FY2013 Period

FY2012 Period

As of March 31, 2014

As of March 31, 2013

AssetsCurrent assets(Millions of yen)Account

Period FY2013 Period

FY2012 Period

As of March 31, 2014

As of March 31, 2013

Liabilities
20,35016,184

Cash and bank deposits

9,730

7,407

Notes and accounts receivable

4,832

3,794

Current liabilities

5,949

4,322

Notes and accounts payable

3,512

2,362

Others

2,436

1,959

5,557

3,870

—

3,475

5,049

—

Others507

394

Total liabilities

11,506

8,192

Shareholders’ equity

22,731

20,480Capital stock

10,19910,199

Capital surplus

4,181

4,181

Retained earnings

10,684

8,422

Treasury stock(2,334)(2,323)

Total other cumulative
comprehensive income(2,011)(1,992)

Minority interests

727

682

Total net assets

21,446

19,170Total liabilities and net assets

32,95327,363Long-term liabilities
Allowance for retirement
benefits

Inventories

4,225

3,902

Others

1,562

1,079

Fixed assets

Tangible fixed assets

Intangible fixed assets

Investments and other assets

Investment securities

12,603

11,178

8,499

8,456

173

Debt for retirement benefits

Net assets

187

3,930

2,534

1,997

1,957

Others1,933

577

Total assets

32,95327,363■ Consolidated statement of change in net assets FY2013 (April 1, 2013 – March 31, 2014)

(Millions of yen)

Total other cumulative
Shareholders' equity
comprehensive
Capital stock Capital surplus Retained earnings Treasury stock Total shareholders’ equity
incomeOutstanding as of April 1, 201310,199

4,181

8,422

(2,323)

20,480(1,992)

Minority
interests

Total net
assets682

19,170Change in value for consolidated
accounting year
Dividend of surplus

(137)

(137)

(137)

FY2013 net income

2,399

2,399

2,399

(11)

(11)

(11)

0

0

0

Acquired treasury stock
Disposed treasury stock0

Change in value for consolidated accounting
year for items other than capital stock (net)

7

(19)

44

25

Total change in value for consolidated
accounting year

—

0

2,262

(11)

2,251

(19)

44

2,276

Outstanding as of March 31, 2014

10,1994,181

10,684(2,334)22,731(2,011)727

21,446

■ Consolidated statements of income
PeriodAccount(Millions of yen)

Year ended
March 31, 2014

Year ended
March 31, 201323,115

17,982

Net sales
Operating income

1,630

140

Ordinary income

2,014

715

Income before income taxes
and minority interests

2,100

773

Net income

2,399

261

Trends of net sales (Millions of yen)The 63rd
period20,441The 64th
period17,982The 65th
period(FY2013)

23,1150

5,000Period(Millions of yen)

Year ended
March 31, 2014

Year ended
March 31, 2013

Net cash from operating activities

2,034

1,020

Net cash from investing activities

204

(322)

Net cash from financing activities

(155)

(192)

Account

15,00020,00025,000Trends of operating income (Millions of yen)The 63rd
period■ Consolidated statements of cash flows

10,000653

The 64th
period140

The 65th
period(FY2013)

1,630
0

500

1,000

1,500

2,000

Trends of ordinary income (Millions of yen)

Net increase (decrease) in cash and cash
equivalents

2,563

1,021

Cash and cash equivalents at beginning of
period

7,166

6,144

Cash and cash equivalents at end of period

9,730

7,166

The 63rd
period

1,306

The 64th
period715

The 65th
period(FY2013)2,014
0■ Consolidated subsidiaries in each business segment
Business segment

Imaging & Information
Equipment BusinessCompany names

MUTOH INDUSTRIES LTD., MUTOH Belgium nv,
MUTOH North Europe S.A., MUTOH Deutschland GmbH,
MUTOH AMERICA INC., MUTOH HONG KONG LIMITED,MUTOH SINGAPORE PTE. LTD.,
MUTOH AUSTRALIA PTY. LTD.,
MUTOH ENGINEERING INC.

Information Service
Business

MUTOH ITEX Co., Ltd.,MUTOH ENGINEERING INC.

Real-Estate Leasing
Business

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

Other Business

MUTOH ENGINEERING INC.,
MUTOH ENTERPRISES LTD.

500

1,000

1,500

2,000

2,500

Trends of net income (loss) (Millions of yen)The 63rd
period(425)

The 64th
period261

The 65th
period(FY2013)
(500)

2,399
0

500

1,000

1,500

2,000

2,500

8

Company Profile (As of June 26, 2014)
Name:

MUTOH HOLDINGS CO., LTD.

Established:

March 5, 1952

Head office:

TEL: +81-3-6758-7100(founded: December 1942)
Capital stock:

1-3, Ikejiri 3-chome, Setagaya-ku, Tokyo
154-8560

10,199 million yen

Main business:

Management and assets management of
the Group companies

Website address:

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

MUTOH group companies

MUTOH HOLDINGS CO., LTD.

•MUTOH Belgium nv•MUTOH Deutschland GmbH•MUTOH North Europe S.A.

•MUTOH HONG KONG LIMITED•MUTOH SINGAPORE PTE.LTD.
•MUTOH AUSTRALIA PTY.LTD.

•MUTOH INDUSTRIES LTD.
•MUTOH ENGINEERING INC.
•MUTOH ENTERPRISES LTD.
•MUTOH ITEX Co., Ltd.
•MUTOH FIGURE WORLD INC.

•MUTOH AMERICA INC.

(Notes) MUTOH FIGURE WORLD INC. was established in June 2014.

Directors (As of June 26, 2014)

9

Masanori Takayama

Chairman of the Board

Hajime Tatsuzawa

Full-time Corporate Auditor

Nobumasa Hayakawa

President

Toshio Ishida

Corporate Auditor

Yoichi Abe

Managing Director

Nobuaki Kunimine

Corporate Auditor

Hisayoshi Aoki

Managing Director

Masanobu Takeda

Director

Toshihiro Sakamoto

Director

Yoshiyuki Takayama

Director

Yoshihiko Baba

Director

Stock information (As of March 31, 2014)■ Number of shares issuable

170,000,000■ Number of shares issued

54,818,180■ Number of shares per unit
■ Number of shareholders

1,000
6,474

■ Major Shareholders
Name

Number of
Ratio of
Shares Held Shareholding(Shares)(%)

TCS Holdings Co., Ltd.

13,220,000

28.80Mizuho Bank, Ltd.

2,121,399

4.62

Eiji Mutoh

1,580,586

3.44

Sumitomo Mitsui Trust Bank, Limited

1,457,000

3.17

Unisystem Co., Ltd.

923,000

2.01

NTT System Development Co., Ltd.

712,000

1.55

State Street Bank and Trust Company

653,000

1.42

Keiichi Hori

591,000

1.29

Japan Securities Finance Co., Ltd.

572,000

1.25

High-Tech System Corporation

541,000

1.18(Notes) 1. T he Company holds 8,911,813 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 of shareholders
Securities companies
2.85%
47

Breakdown by the number of shares held
Foreign companies
3.88%
57

1 or more
11.54%
4,232

10 or more
8.78%
299

Less than 1
0.64%
1,481

50 or more
4.01%
31

Financial
institutions
13.31%
26
Other companies
51.54%
226

5 or more
4.15%
385

Individuals and others
28.42%
6,118

100 or more
14.18%
35

500 or more
6.92%
61,000 or more
49.78%
5

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 :Sumitomo Mitsui Trust Bank, Limited
4-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8233

Mail address and Telephone number :8-4, Izumi 2-chome, Suginami-ku, Tokyo 168-0063
TEL: +81-120-782-031 (toll-free)
Stock Transfer Agency Department
Sumitomo Mitsui Trust Bank, Limited
Stock transfer agent services are provided at branch offices in Japan of Sumitomo Mitsui Trust
Bank, Limited.

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 Sumitomo Mitsui Trust Bank, Limited, an account management institution of special accounts.
2. Payment of accrued dividends
Please make all requests to Sumitomo Mitsui Trust Bank, Limited, which is the administrator of the shareholder register.
3. Dividend Statement
The Dividend Statement that is delivered upon dividend payment also serves as a Payment Notice in accordance with the stipulations of the
Act on Special Measures Concerning Taxation.
This document can be used as an attachment when filing your income tax return. We ask that shareholders who will file an income tax return
carefully store this document.
For shareholders that have selected the stock pro rata system, your stock brokerage will calculate the amount of withholding tax.
Please confirm with your stock brokerage the materials to be submitted when filing your income tax return.