66 th (Fiscal Year 2014)

1st Half Financial Report
April 1 to September 30, 2014

TSE securities code : 7999

MUTOH HOLDINGS CO., LTD.

M e s s a ge to Sha re hold er s

Basic Policy

We would like to express our sincerest gratitude to all of the shareholders
who have continued to support us.
We hereby present our 66th (Fiscal Year 2014) 1st Half Financial Report,

With constant innovation

covering the MUTOH Group's business performance and activities.

and challenging
ourselves,
we contribute to society

B u s i n ess Situation a n d Ou t c o m es
In the first half of the current consolidated fiscal year, despite the sustained gradual recovery of economies in Europe andthe US and high growth rates in China and other emerging countries in Asia that continued to exceed those in developed
countries, the outlook of the global economy the Group operates in continued to be uncertain as there were concerns
over the economic impact of political instability in Eastern Europe and the Middle East and broadening economic
stagnation and signs of deflation in Europe.
Against this background, we worked to strengthen our product lineup in our core large-format inkjet printer business byintroducing four new product models. Recently in October, the large-format inkjet printer "VJ-2638" of the "ValueJet"
series won the "PRODUCT OF THE YEAR" award at the SGIA (Specialty Graphic Imaging Association) Expo (the industry’slargest exhibition in the US) in Las Vegas. The "VJ-2638" also won an award in 2012, and the "VJ-1638" of the"ValueJet" series won the award in 2013, thus "ValueJet" series products have won the award for three consecutive years,
reflecting the market’s extremely positive reception of MUTOH’s large-format inkjet printers both in Japan and overseas.
In the 3D printer business that has gained much recent attention, efforts were made to expand the business with the sales
launch of the "MF-2000", the top model of the personal 3D printer "Value3D MagiX MF-1000", shipments of which
continue to exceed initial targets, and the start of the 3D dress-up figure print service "Value 3D Figure World" that is a
total 3D print service solution, together with the establishment of a new subsidiary.
In addition to the efforts above, the Head Office Showroom was greatly expanded and renewed, and a new showroom
was opened in Osaka as a base for communicating the MUTOH brand in western Japan. The showrooms are aimed atconducting effective PR in order to increase sales for the MUTOH Group’s products and services that include its core largeformat inkjet printers and plotters, MUTOH’s original personal 3D printer "Value3D MagiX" series, and the professional
3D printers of 3D Systems, Inc. (US).
As a result of these factors and improvements in the MUTOH Group’s operating environment, comprising a strengthenedprofit structure at business locations overseas and in Japan combined with the positive development in the forex
environment accompanying yen depreciation, net sales stood at ¥11,467 million (up 6.0% year on year), operating
income came to ¥876 million (up 33.7% year on year), and ordinary income increased to ¥928 million (up 3.0% year onyear). Meanwhile, since ¥2,751 million of gain on the transfer of benefit obligation relating to employees’ pension fund
was recorded as extraordinary income resulting from the authorization of the transfer of benefit obligation relating to theemployees’ pension fund (portion of the past) by the Minister of Health, Labor and Welfare as of April 1, 2014, net
income of ¥2,443 million (up 313.3% year on year) was recorded.
Going forward, the MUTOH Group will deploy aggressive business strategies aimed at further improving its businessperformance.
We greatly appreciate your support and ask for your continued assistance and cooperation.

1

Consolidated Financial Highlights
Consolidated net sales
66th (FY2014) 1st Half period:

1st Half¥11,467 million

63rd (FY2011) period:

64th (FY2012) period:

65th (FY2013) period:

20,441million
10,579million

17,982million
8,690million

23,115million
10,813million

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

Consolidated operating income¥876 million

66th (FY2014) 1st Half period:¥11,467 million

63rd (FY2011) period:

64th (FY2012) period:

65th (FY2013) period:

653million
463million

140million
34million

1,630million
655million

1,077 915

¥928 million

9,474

1st Half

Consolidated ordinary income (loss)
66th (FY2014) 1st Half period:

1st Half● 66th (FY2014) period:

63rd (FY2011) period:

64th (FY2012) period:

65th (FY2013) period:

1,306million
680million

715million(187)million

2,014million
901million● 65th (FY2013) period:

Consolidated net income (loss)
66th (FY2014) 1st Half period:

1st Half

63rd (FY2011) period:

64th (FY2012) period:

65th (FY2013) period:(425)million(297)million

261million(317)million

2,399million
591million

Consolidated gross assets
66 (FY2014) 1 Half period:th¥2,443 millionst¥10,813 million
977 976

8,860¥33,059 million

63rd (FY2011) period:

64th (FY2012) period:

65th (FY2013) period:

27,028million

27,363million

32,953million● 64th (FY2012) period:

Consolidated net assets
66th (FY2014) 1st Half period:¥8,690 million¥24,682 million

63rd (FY2011) period:

64th (FY2012) period:

65th (FY2013) period:

18,601million

19,170million

21,446million

9349156,840

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

Forecast of consolidated
business results

Net sales

OperatingincomeOrdinary
incomeNet income

25,000

1,000

1,000

2,500

Figures announced
on May 15, 2014.

As we enter the third quarter of the current consolidated fiscal year, there is increasing uncertainty regarding theglobal economy as typified by significant fluctuations in stock prices and exchange rates and a somewhat weakeconomic climate affecting the MUTOH Group’s operating environment, combined with many uncertainties that
could have an impact on business performance, including concerns over increasing costs of raw materials. As aresult, it is difficult to make reasonable performance estimates at this point in time.
Therefore, although the full-year forecasts released on May 15, 2014 will be maintained for the time being, shouldchanges be required for the forecasts as these factors become clear in the future, we will make prompt disclosures
as needed.

2Overview of Business Segments
In Asia, despite the impact of the consumption tax rate hike in Japan,
due to factors such as strong sales to China and other emerging Asiancountries, net sales and segment profit stood at ¥4,126 million (up82.6%Imaging &Information
Equipment
BusinessNet Sales¥9,474million

9.4%
Information
ServiceBusiness

Real-Estate
Leasing
Business andOtherBusinesses

30.8% year on year) and ¥421 million (down 6.6% year on year),respectively.
In North America, due to factors such as aggressive sales activities
including Latin America and the effect of yen depreciation, net sales
and segment profit stood at ¥1,791 million (up 8.0% year on year) and¥136 million (up 66.5% year on year), respectively.
In Europe, due to factors such as aggressive sales activities and theeffect of yen depreciation, net sales and segment profit stood at¥3,556 million (up 14.5% year on year) and ¥356 million (up 132.3%year on year), respectively.

In the Information Service Business, thanks to factors including
ongoing efforts to strengthen sales capabilities, net sales and segment
profit stood at ¥1,077 million (up 10.3% year on year) and ¥52 million(down 3.7% year on year), respectively.
In addition, efforts were made to expand this business including entry
into the consumer market through the establishment of a subsidiaryengaged in a 3D dress-up figure print service.

Net Sales¥1,077million

8.0%Net Sales¥915million

In the Real-Estate Leasing Business, due to a switchover to internalGroup use for some real estate, net sales and segment profit stood at¥132 million (down 22.2% year on year) and ¥71 million (down 38.6%year on year), respectively.
In the Other Business, as a result of weak consumer spending
following the consumption tax rate hike, net sales stood at ¥783
million (down 2.8% year on year) and segment loss of ¥12 million wasrecorded (an improvement of ¥42 million compared with the same
period last fiscal year).

"VJ-628" born as an attractive A1-size entry-level
inkjet printer using Eco-Sol ink"VJ-628" is an entry-level inkjet printer with a compact A1-size body that fits on a desktop
and uses Eco-Sol ink that achieves both high weathering resistance and almost no odor.
The main features are as follows.
Eco-Sol ink model with an A1-size that can be installed regardless of space availability
Two types of ink combinations available: four-color (C/M/Y/K) and six-color(C/M/Y/K/Lc/Lm)
Makes printing easy for both indoor and outdoor applications such as pop-out
materials, various signs, and informational signs
Equipped with standard Windows printer driver that makes it easy to print from Office
softwarePrinter can be operated from your PC using the standard-equipped remote panel
software
Stickers and labels can be created efficiently in combination with the cutting plotter"VJ-628"
Inkjet printer using Eco-Sol ink(Installation with the optional stand)

Windows 8.1 support for"Drafting Tool PHOTO EXPERT" that allows
simple conversion of designer images into plans"Drafting Tool PHOTO EXPERT" is a design
drafting tool for quickly preparing plans throughdirect capture using a scanner for cases such as
when you want to modify part of an existingplan and reuse it, when it is bothersome to createa building frame plan from plan, when you wantto measure area and distance from a plan, or tocreate directions or instructions from plans.
In addition, this software can be used for creating
technical materials and presentation materials,
enabling broad application for in-house use.

User interface focused on practical use

Easy-to-understandinstructions on thenext step

Layout of frequently
used commands

Possible to open
different plans withno limitations

Commands displayed
as icons that can becarried out with oneclick

Display of command
being carried out

Display of mouseposition

Finoa "FRESH BALL" deodorizing air freshener
Renewed release of seven patterns"FRESH BALL""FRESH BALL" is a ball-shaped deodorizing air freshener that eliminates
unpleasant odors and freshens surroundings with a minty aroma.
We have recently renewed the product packaging and released sevenpatterns.
The main features are as follows.
Multi-purpose deodorizing for sports shoes, gym bags, locker rooms, etc.
Replaces unpleasant sweat odors with a fresh and clean scent
The air freshener is made of plastic and set deep inside the ball
The scent lasts for three straight months after opening the package
It can be used anywhere with unpleasant odors, including inside the car,drawers, or luggage

Volleyball

BaseballSoccerClear Pink

TennisClear Blue

Basketball4

Topics
Renewal opening of the MUTOH Head Office ShowroomExhibition ranges from personal 3D printers to metal-forming 3D printers
The Head Office Showroom has been expanded accompanying asignificant increase in the number of 3D printer-related products
handled by MUTOH.
The floor area has been expanded by 1.5 times to approximately 330
square meters. Customers are welcomed to this showroom, one of
the largest of its type in Japan, with an area displaying the largeformat inkjet printers and plotters of MUTOH INDUSTRIES and a 3D
printer area displaying a product lineup ranging from the personal
3D printer "Value3D MagiX" series (MUTOH ENGINEERING INC.) toprofessional 3D printers for applications including metal forming (3DSystems, Inc.).
Head Office Showroom
3D printer area

FlashReport"MF-1000"
Personal 3D printer
MUTOH’s original 3D
printer with Japanese
language software"ProX 200"
Direct metal printing
3D printerDirect forming withhigh precision of parts
with complex shapes
using metal or ceramicmaterials

Winner of "PRODUCT OF THE YEAR" award
for three consecutive years
at the SGIA Expo 2014 in America

At the SGIA (Specialty Graphic Imaging Association) Expo(the industry’s largest exhibition in the US) that was held in Las Vegas
from October 22 to 24, MUTOH’s large-format inkjet printer "VJ-2638" wonthe "PRODUCT OF THE YEAR" awardin the Solvent/Latex Ink category for the second time following 2012,
with the "VJ-1638" printer winning the award in 2013.

Thus, MUTOH’s inkjet printer "ValueJet" series
has won the award for three consecutive years!
This historic and outstanding achievement of winning the award for threeconsecutive years proves the high performance and high quality of theMUTOH "ValueJet" series.

5"VJ-2638"
High-speed, large-format inkjet printerFirst 3D dress-up figure print service in Japan!
"Value 3D Figure World"
The 3D printer entertainment offering "Value 3D Figure World"is the first 3D dress-up figure print service in Japan that allows

3D dress-up figure print service
The customer’s face isimported using a highspeed 3D scanner. The
customer then selects
costumes and hairstyles
according to theirpreference, and a 3D
figure is produced.

users to make 3D figures using their own face.
MUTOH FIGURE WORLD INC. was established in June 2014 as a
subsidiary engaged in this service.
Through this subsidiary, MUTOH will provide a total solution
business ranging from 3D scans to print output and aggressively
develop the consumer market through efforts including
events held at large commercial facilities, shopping malls, anddepartment stores, and the expansion of the "Mutoh Figure
World Chain."

GirlBoy(Notes) This business is only in Japan.

Woman

The customer type is selected fromthe display menu.

ManThe customer’s face isphotographed.

The customer’s face is configured
in about 10 seconds using thehigh-speed 3D scanner.

For the 3D costume and hairstyle forms,
3D designs will be produced based on theregion and location in response to the needsof customers.

Various costumes
can be selectedwith one touch.

Various hair types/colors, hats, etc. canalso be selected with
one touch.

Customers can enjoy making
3D dress-up figures by selecting
various hairstyles and costumes
from the touch screen.
Once an order is placed, a 3D
figure is formed by a full-color
3D printer and delivered to thecustomer.

6Consolidated 1st Half Financial Statements■ Consolidated Balance Sheets
PeriodAccountAs of September
30, 2014(Millions of yen)

As of September
30, 2013

As of March
31, 2014

AssetsCurrent assets

Cash and bank deposits

17,917

20,350

9,862

8,991

9,730

3,837

4,832

Inventories

5,923

3,962

4,225

1,887

1,126

11,453

12,603

Tangible fixed assets

8,398

8,419

8,499

Intangible fixed assets

174

189

173

Investment securities

OthersTotal assets

As of September
30, 2014

As of September
30, 2013

As of March
31, 2014

6,246

4,979

5,949

Notes and accounts
payable

4,038

3,060

3,512

Others

2,207

1,919

2,436

Non current liabilities

2,131

4,194

5,557

Allowance forretirement benefits

—

3,674

—

Debt for retirement
benefits

1,608

—

5,049

Others

522

519

507

Total liabilities

8,377

9,174

11,506

Shareholders’ equity

24,97020,93022,731

Capital stock

10,19910,19910,199

3,053

2,484

568

33,0592,844

Capital surplus

4,182

4,181

4,181

Retained earnings

12,925

8,876

10,684

2,332

Treasury stock(2,336)(2,326)(2,334)511

Total other cumulative
comprehensive income(1,183)(1,436)(2,011)

Minority interests

895702727

Total net assets

24,682

20,196

21,446

29,370Total liabilities and net assets

33,05929,37032,953Current liabilities

1,562

11,626

Investments andother assets

7

21,432

3,759

Fixed assets

PeriodAccount

Liabilities

Notes and accounts
receivable

Others(Millions of yen)

3,930

Net assets

1,997

1,933

32,953

■ Consolidated statements of income
PeriodAccount

Net sales
Operating income
Ordinary income(Millions of yen)

Trends of net sales (Millions of yen)

1st Halr period ended 1st Halr period ended
Year ended
September 30, 2014 September 30, 2013 March 31, 2014
10,813

23,115

876

655

1,630

The 65thperiod
The 66thperiod(FY2014)

901

2,014

Income before income taxes
and minority interests

3,696

911

2,100

Net income

2,443

591

2,399

8,690

The 64th
period11,467928

1st half year

Full fiscal year

17,982
10,813
23,115
11,4670

5,000

10,00015,00020,00025,000Trends of operating income (Millions of yen)
Full fiscal year

1st half year

The 64th 34
period140■ Consolidated statements of cash flows
PeriodAccount(Millions of yen)

1st Halr period ended 1st Halr period ended
Year ended
September 30, 2014 September 30, 2013 March 31, 2014655

The 65thperiod

1,630

The 66thperiod(FY2014)

Net cash from operating activities

377

1,505

2,034

Net cash from investing activities

(157)

203

204

Net cash from financing activities

(106)

(143)

(155)

Net increase (decrease) in cash andcash equivalents

132

1,824

2,563

Cash and cash equivalents at
beginning of period

9,730

7,166

7,166

The 65th
periodCash and cash equivalents at end ofperiod

9,862

8,991

9,730

The 66thperiod(FY2014)876
0Business segmentImaging & 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 ServiceBusiness

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

Real-Estate LeasingBusiness

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

Other Business

MUTOH ENGINEERING INC.,
MUTOH ENTERPRISES LTD.

1,000

1,5002,000

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

1st half year(187)

The 64thperiod(500)■ Consolidated subsidiaries in each business segment

500

715
901
2,014
928
0500

1,000

1,500

2,000

2,500

Trends of net income (loss) (Millions of yen)
Full fiscal year

The 64thperiod(317)261

The 65thperiod

591
2,399

The 66thperiod(FY2014)(500)

1st half year

2,443
0500

1,000

1,500

2,000

2,500

8

Company Profile (As of September 30, 2014)
Name:

MUTOH HOLDINGS CO., LTD.

Established:

March 5, 1952Head office:

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

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

Main business:

10,199 million yen

Management and assets management ofthe 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 September 30, 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 BabaDirector

Stock information (As of September 30, 2014)■ Number of shares issuable170,000,000■ Number of shares issued

54,818,180■ Number of shares per unit

1,000

■ Number of shareholders

5,436■ Major Shareholders
Number ofRatio ofShares Held Shareholding(Shares)(%)

Name
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

Japan Trustee Services Bank, Ltd. (Trust Account 9)617,000

1.34

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

596,000

1.30

Keiichi Hori

591,000

1.29(Notes) 1. T he Company holds 8,914,742 shares of treasury stock, which isexcluded from the major shareholders listed above.
2. The ratio of shareholding is calculated after excluding treasury stock.

Breakdown of shareholders
Securities companies
2.68%
45

Breakdown by the number of shares held
Foreign companies
5.54%
61

5 or more
3.57%
324

1 or more
9.16%
3,313

Less than 1
0.63%
1,451

10 or more
8.46%
264
50 or more
3.86%
31

Financial
institutions
15.60%30
Other companies
51.38%
215

Individuals and others
24.80%
5,085

100 or more
16.46%
41

500 or more
8.07%
71,000 or more
49.79%
510

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

Mailing 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.