TSE securities code : 7999

68 (Fiscal Year 2016)thFinancial Report

April 1, 2016 to March 31, 2017

MUTOH HOLDINGS CO., LTD.

M e s s a ge to Sha re hold er s
We would like to express our sincerest gratitude

Basic Policy

to all of the shareholders who have continued tosupport us.
We hereby present our 68th (Fiscal Year 2016)

With constant innovationand challenging

Financial Report, covering the MUTOH Group’s

ourselves,business performance and activities.

we contribute to society
President

Nobumasa Hayakawa

B u s i n ess Situation a n d Ou t c o m es
Even with the United Kingdom deciding to leave EU, and the uncertainty of the protectionist policy taken by newly
appointed United States President Trump, we had gradual increase in the Western countries this fiscal year. On the other
hand, China and other developing nations in Asia were at an unstable situation with the economy slowing down in thefirst half of the year.
In the domestic economy, there seems to be a reluctance to make equipment investments amongst the companies, but
employment conditions have continued to grow. Consumer confidence has picked up and the economy is on a gradualupswing.
MUTOH Group has continued to strengthen our management base and develop products with increasing our earning
power in mind, but product prices have dropped, due to major manufacturers entering the Large Format Inkjet Printerbusiness. The strong yen have also affected our group’s performance.
Amid this situation, overseas sales subsidiaries have been put under direct affiliation of MUTOH INDUSTRIES LTD. in
August. This will speed up the decision making in the field of information processing equipment, and strengthen ourcompetitive power in the global market by integrating development, production and sales. As of October 1st, the 3D
printer business, sales of design drawing equipment, sales of measurement and control equipment, and CAD solution
have been aggregated to MUTOH INDUSTRIES LTD. to improve customer service and business efficiency domestically. With
this move, we have been able to compress inventory, and cut cost through rationalization.
With our core business, Large Format Inkjet Printers, we have put power into developing new products in the growthmarket of industrial and textile. We released the 4 types of printers in LED-UV hybrid printer “VJ-1638UH”, direct textile
printer “VJ-1938TX”, high-grade fast eco-solvent printer “VJ-1938X”, high-speed dye-sublimation printer “VJ-1948WX”.
We also released the pigment printing ink “TP11” and dye sublimation ink “DH11” as well.
With 3D Printers, we released “MF-2500EP”, the industry’s first desktop type 3D printer that supports engineering plastic
with a dual head fused deposition modeling system, and has garnered good reviews.
As a result of the above, in consolidated FY 2016, the net sales dropped to ¥20,493 million (down 12.6% year on year),the operating income decreased to ¥199 million (down 73.5% year on year), and ordinary income dropped to ¥113
million (down 67.9% year on year). The amount of loss attributable to owners of the parent of FY2016 was ¥113 million(last year was a ¥148 million profit).
With these results and future business plans considered, the year-end dividend will be set at ¥3.5 yen per share.
We will aim for a business recover next fiscal year, and drive with aggressive measures targeting the growth market.
Your continued support would be greatly appreciated.

1

Consolidated Financial Highlights
Net sales
68th (FY2016) period:

65th (FY2013) period:

23,115million¥20,493 million

66th (FY2014) period:

23,475million

Operating income
65th (FY2013) period:

1,630million

66th (FY2014) period:

1,306million

Ordinary income

2,014million

Imaging & Information Equipment Business

23,449million

Information Service Business
Design Measurement Equipment Business,
Real-Estate Leasing Business and Other Businesses● 68th (FY2016) period:

67th (FY2015) period:¥20,493 million

689million

2,171¥199 million

68th (FY2016) period:

65th (FY2013) period:

67th (FY2015) period:¥183 million

68th (FY2016) period:

Business Segment
Net Sales (Millions of yen)

66th (FY2014) period:

1,354million

2,216

16,10467th (FY2015) period:

622million

Profit (loss) attributable to owners of parent¥(113) million

68th (FY2016) period:

65th (FY2013) period:

2,399million

66th (FY2014) period:

2,684million● 67th (FY2015) period:

67th (FY2015) period:¥23,449 million

148million
2,163

Total assets
68th (FY2016) period:

65th (FY2013) period:

32,953million

32,027million

Total net assets
68th (FY2016) period:

65th (FY2013) period:

21,446million¥30,514 million

66th (FY2014) period:

25,061million

19,09667th (FY2015) period:

31,701million¥23,484 million

66th (FY2014) period:

2,188● 66th (FY2014) period:

67th (FY2015) period:¥23,475 million

23,917million
2,282 1,990

19,202

Forecast of 69th (FY2017)(Millions of yen)

Forecast of consolidated
business results

Net sales

OperatingincomeOrdinary
income21,100420

420Profit attributable toowners of parent
250

Figures announced
on May 19, 2017.

In the world economy, future instability has not been cleared up with geopolitical risks in Europe, Middle East, andEastern Asia, but we have seen a gradual trend of economic expansion in the Western countries.
Under these circumstances, MUTOH Group will reconsider is product structure and target fields, and accelerate thebusiness shift to growth fields. We will shift to the growing market of industrial and textile fields in our large format
inkjet printer business. In sales, we will strengthen the Western country and Japanese market where we can expect
a high profit with the expansion of the growth field.
With our 3D printer business, we will shift from consumer products to business use products, and strengthen thesales of our high-profit products.
We will enforce a distribution restructuring that has been planned since the previous fiscal year, and will work for a
profound cost-cut in regard of expenses.

2Overview of Business Segments

78.6%
Imaging &Information
Equipment
Business

Net Sales¥16,104million

10.6%
Information
ServiceBusiness

DesignMeasurement
Equipment
Business,
Real-Estate
Leasing
Business and
Other
Businesses

3

Drop down of the sales prices of China and other emerging countries
in Asia, and a combination of the price reductions and slowdown of
the sales of 3D printers, net sales and segment loss stood at ¥6,896
million (down 15.6% year on year) and ¥429 million (last year was a¥98 million profit).
In North America, net sales and segment profit respectively dropped
to ¥3,609 million (down 16.9% year on year) and ¥257 million (down
43.5% year on year) due to the effect of yen appreciation.
In Europe, we maintained high sales in Northern Europe, but net sales
and segment profit respectively dropped to ¥5,598 million (down
14.9% year on year) and ¥155 million (down 20.4% year on year) due
to the effect of yen appreciation and geopolitical risks.

In the Information Service Business, sales in existing businesses (theCAD business and systems solutions service business) were mostly flat
YoY, and net sales stood at ¥2,171 million (up 0.4% year on year).
With the help of consolidation of domestic subsidiaries in October, wewere able to rationalize through effective cost cuts, and segment
profit rose to ¥164 million (up 191.0% year on year).

Net Sales¥2,171million

10.8%
Net Sales¥2,216million

In the Design Measurement Equipment Business, design drawing
equipment and optical measurement equipment have shown steadysales, and net sales stood at ¥1,546 million (up 2.3% year on year).
With the help of consolidation of domestic subsidiaries in October, wewere able to rationalize through effective cost cuts, and segment
profit rose to ¥149 million (last year was a ¥13 million loss).
Utilization was steady in the Real Estate Leasing Business, as net sales
and segment profit respectively stood at ¥263 million (up 1.5% year
on year) and ¥202 million (down 1.3% year on year).
In Other Business, sales decreased slightly and recorded net sales of¥406 million (down 2.5% year on year) and a segment loss of ¥22
million (compared to a segment loss of ¥9 million last year).

Realtime monitoring of printers“ValueJet Status Monitor (VSM)”“VSM” is a free application software for MUTOH printer users. Users
can monitor their printers at realtime through computers and mobile
devices. It will maxmize the performance of the MUTOH printers, andsimplifies workflow.
By registering a ValueJet printer to “VSM,” users can use services suchas [Status Monitor], [Report Mail], [Color Verify], and [SmartphoneLink].
One of the features of “VSM” is the ValueJet Print Server (VPS), andwill provide a fast and stable printing.
(Notes) “ValueJet Club” user registration is required for downloading “VSM.”
https://valuejetclub.mutoh.co.jp/mutoh/guser/“M-Draf” is a CAD that continues to evolve“M-Draf Spirit 2017” released
The “M-Draf” series have evolved with new operating systems andtechnological innovations. We have released the latest version ofcommon-use 2D CAD “M-Draf Spirit 2017.”
Object Orientation“Object Orientation” command system is used to enable operationthat synchronizes with the thought process when drawing.
Complete commands based on the new JIS
Useful commands have been powered up to be able to “create
precisely and quickly” based on the complicated new JIS.
Automatic Discrimination of complicated rules / Intelligent CommandWith the Intelligent Command that corresponds with the complicateddrawing rules, users can easily combine notices, expand and contract
leader lines, and place notices and dimensions.

“PRO11T” Scissors for Taping &“Compression bandage”“PRO11T” Scissors for Taping
Can cut tapings without damaging the skin with its round tip.
Has a large finger grip and is easy to cut. Looseness is decreased withthe power lock screw.
It is coated to prevent the tackifier from sticking on to the blades
when cutting Kinesio tapes, and stretch tapes.
“Compression Bandage”“Compression Bandage” is a tube-type bandage for compressionuse. It is washable and economic.
Since it is tubular, it can be cut to a preferred length and can be usedon the arm, elbow, knee, thigh, and other body parts.
Other than compression, it can be used to hold ice packs and otheruseful ways.
The width of the bandage varies from 8.9cm, 10cm, 13cm, and 15cm.

“PRO11T”
Scissors for Taping“Compression Bandage”

4Topics
Maximum print speed of 117.3m²/h
Dye-Sublimation Transfer Inkjet Printer “VJ-1948WX” Released“VJ-1948WX” is 1910mm/75” wide, and provides highspeed printing with its 4 staggered print heads. It enables
both high productivity and high-speed printing, and is adye-sublimation printer of the new age. It can be used in avariety of products ranging from scarves, banners, interiors,
apparel, sport uniforms and more.
Staggered 4 print heads-setup enables amazing high-speed“VJ-1948WX”

printing. Maximum print speed is 117.3m²/h (*4 color
360x720dpi)
Custom modes has been added, widening the options forprinting quality and speed.

Heater section view

A large dual heater is built-in in the rear of the front
paper guide. Will dry the media quickly, and accelerates
productivity. The heater temperature can be set individuallyfrom the operation panel. Checking and changing the heatertemperature without interrupting printing is possible.

Temperature setting: OFF/30℃～50℃

Designed for high functionality＊‌E asy manipulation from the front or the rear with the manualpressure roller down system. “Standard” and “Strong”
pressure can be chosen depending on the media.
＊‌P ressure rollers can be raised up and down individually,

avoiding wrinkles even when printing on thin transfer papers.
＊‌E quipped with feed and take-up system, enabling a stable

media transportation of up to 100kg/220lbs.
MUTOH’s original dye-sublimation ink in 4 (K,C,M,Y) and 8
color (K,C,M,Y,Lc,Lm,Lk,LLk) will provide the optimal print
quality and wide color range. A new ink holder (option) that
supports 1000ml and 2000ml large capacity ink packs will
prolong continuous printing.

5“DH11”
MUTOH’s original dye-sublimation ink

Optical Shaping 3D Printer “ML-48”
Molding Resin for High-Speed “MR-HS11” Released“ML-48” is a compact optical shaping 3D printer that uses the DLP (Digital Light
Processing) system, and can be used in design testing and prototypes, figures,and other categories that require high precision.
MUTOH’s original molding resin that maximizes the molding performance of“ML-48.” Along with resin for design testing, resin for precise molding, andtransparent resin, we have released a new resin, the “MR-HS11” for high-speed
molding.
Achieve up to 5 times the usual speed with “MR-HS11” by inserting theoptional black canopy.
Ex: Molding height 45mm
High-speed molding 45minutes
Conventional

3hours 45minutes

Molding Samples“ML-48”Compact optical shaping 3D printerBlack Canopy Set up“MR-HS11”
Molding Resin for
High-Speed

Awarded the Wide Format & Signage Magazine’s
2017 Readers’ Choice Top Product AwardOn April 2017, Wide Format & Signage Magazine announced thewinner of the 2017 Readers’ Choice Top Product Award. The large
format inkjet printer “UV-1638UH” (LED-UV printer) that launchedin 2106 was awarded in the Hybrid Printer Category, and “VJ1938TX” (Direct textile printer) was awarded in the Textile Printer“VJ-1638UH”
Hybrid Printer Category

Category.
Wide Format & Signage Magazine readers from around the world,
printing service providers, and editors of the magazine nominates
over 150 products over various categories, and the winner isdecided through votes from readers and customers through themagazine.
The award is proof the quality of MUTOH products has beenrecognized, and further increase of sales is promised for the two“VJ-1938TX”
Textile Printer Category

products.

6

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

Year ended

Year ended

March 31,2017

March 31,2016

AssetsCurrent assets

Cash and bank deposits(Millions of yen)

PeriodYear ended

Year ended

March 31,2017

March 31,2016

4,850

5,438

Notes and accounts payable

2,817

3,253

Others

2,032

2,185

2,180

2,345

1,750

1,925

Others430

419

Total liabilities

7,030

7,783

Shareholders’ equity

24,591

25,030Capital stock

10,19910,199

Capital surplus

4,182

4,182

Retained earnings

12,55812,993

Treasury stock(2,348)(2,344)

Total other cumulative
comprehensive income(1,928)(1,912)

Non-controlling interests

820

800

Total net assets

23,48423,917

Total liabilities and net assets

30,51431,701

Account

Liabilities
18,68919,645

8,796

8,775

Notes and accounts receivable

4,020

4,570

Inventories

4,702

4,948

Current liabilities

Non current liabilities
Debt for retirement benefits

Others

1,170

1,352

Fixed assets

11,824

12,055

Net assets

Tangible fixed assets

8,578

8,867

Intangible fixed assets

272

299

Investments and other assets

Investment securities

2,973

2,205

2,889

2,150

Others767

739

Total assets

30,51431,701■ Consolidated statement of change in net assets FY2016 (April 1,2016 - March 31,2017)

(Millions of yen)

Total other cumulative
NonShareholders’ equity
Total netcomprehensive controlling
assetsCapital stock Capital surplus Retained earnings Treasury stock Total shareholders’ equity
incomeinterests
Outstanding as of April 1, 2016

10,1994,182

12,993(2,344)25,030(1,912)800

23,917

Change in value for consolidated
accounting year
Dividend of surplus

(321)

(321)

(321)

Profit (loss) attributable to owners of parent

(113)

(113)

(113)

(3)

(3)

(3)

0

0

0

Acquired treasury stock
Disposed treasury stock(0)

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

7

(15)

20

4

Total change in value for consolidated
accounting year

—

(0)

(434)

(3)

(438)

(15)

20

(433)

Outstanding as of March 31, 201710,1994,182

12,558(2,348)24,591(1,928)820

23,484

■ Consolidated statements of income
PeriodAccount(Millions of yen)

Year ended
March 31, 2017

Year ended
March 31, 2016

20,49323,449Net sales

Trends of net sales (Millions of yen)The 66th
period23,475

The 67th

23,449periodOperating income

183

689

Ordinary income

199

622

Income before income taxes
and minority interests

102

736

Profit (loss) attributable to owners ofparent(113)

148

The 68th
period(FY2016)

20,4930

5,000

10,00015,00020,000Trends of operating income (Millions of yen)The 66th
period■ Consolidated statements of cash flows
Period(Millions of yen)

Year ended
March 31, 2017

Year ended
March 31, 2016

Net cash from operating activities

797

2,042

Net cash from investing activities(246)(1,599)Net cash from financing activities

(394)

(392)

Account

25,000

1,306

The 67th
period689

The 68th
period(FY2016)

183
500

0

1,000

1,500

Trends of ordinary income (Millions of yen)

Net increase (decrease) in cash and cash
equivalents

36

(77)

Cash and cash equivalents at beginning of
period

8,519

8,597

Cash and cash equivalents at end of period

8,556

8,519

The 66th
period1,354

The 67th
period622

The 68th
period(FY2016)

199
500

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.,
MUTOH FIGURE WORLD INC., MUTOH INDUSTRIES LTD.

Real-Estate Leasing
Business

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

Other Business

MUTOH ENGINEERING INC., MUTOH INDUSTRIES LTD.,
MUTOH ENTERPRISES LTD.

1,000

1,500

Trends of profit (loss) attributableto owners of parent (Millions of yen)The 66th
period2,684

The 67th
period148

The 68th
period(FY2016)
(500)

(113)
0

500

1,000

1,500

2,000

2,500

3,000

(Notes) ‌MUTOH HONG KONG LIMITED has ceased operation on September 30th, 2016, and MUTOH
INDUSTRIES, LTD. has taken over all sales.

8Company Profile (As of June 29, 2017)
Name:

MUTOH HOLDINGS CO., LTD.

Established:

March 5, 1952

Head office:154-8560
TEL: +81-3-6758-7100(founded: December 1942)
Capital stock:

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

Main business:

10,199 million yen

Management of group operations andgroup assets

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 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.

Directors (As of June 29, 2017)

9

Chairman of the Board

Toshihiro Sakamoto

Director
Audit and Supervisory Committee Member

Hajime Tatsuzawa

President

Nobumasa Hayakawa

Director
Audit and Supervisory Committee Member

Kazuhiro Yamada

Director

Kazuyuki Kamoi

Director
Audit and Supervisory Committee Member

Hiroshi Tobita

Director

Masanori Takayama

Director

Yoshiyuki Takayama

Director

Yusuke Kobayashi

Stock information (As of March 31, 2017)■ Number of shares issuable

170,000,000■ Number of shares issued

54,818,180■ Number of shares per unit

1,000

■ Number of shareholders

7,171■ Major Shareholders
Number of
Ratio of
Shares Held Shareholding(Shares)(%)

Name
TCS Holdings Co., Ltd.

13,220,000

28.82

Mizuho Bank, Ltd.

2,071,399

4.52

Eiji Mutoh

1,580,586

3.45

Sumitomo Mitsui Trust Bank, Limited

1,457,000

3.18

Unisystem Co., Ltd.

923,000

2.01

NTT System Development Co., Ltd.

719,000

1.57

Keiichi Hori

591,000

1.29
1.22

High-Tech System Co., Ltd.

561,000

Japan Trustee Services Bank, Ltd. (Trust Account 5)481,000

1.05

Japan Trustee Services Bank, Ltd. (Trust Account)473,000

1.03(Notes) 1. ‌The Company holds 8,949,833 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
0.73%
23

Breakdown by the number of shares held
Foreign companies
1.70%
57

5 or more
5.00%
460

1 or more
12.77%
4,979

Less than 1
0.55%
1,288

10 or more
11.78%
382

Financial
institutions
12.05%
24

Other companies
51.25%
210

50 or more
3.19%
26
Individuals and others
34.27%
6,857

100 or more
13.16%
28

500 or more
3.79%
31,000 or more
49.76%
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

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.
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.