Fiscal Year 2018 (70 th)
Financial Report
April 1, 2018 to March 31, 2019

MUTOH HOLDINGS CO., LTD.
TSE Securities Code : 7999

M e s s age to Sha re hold er s
We would like to express our sincerest gratitude
to all the shareholders who have continued tosupport us.
We hereby present our Fiscal Year 2018 (70th)
Financial Report, covering the MUTOH Group’sbusiness performance and activities.

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

President

Nobumasa Hayakawa

B u s i n ess S ituation a n d Ou t c o m es
We have seen gradual recovery amongst the global economic environment this fiscal year, but uncertainty continues withtrade disputes from America’s protectionist policy, Brexit issues, and economic slowdown in China. In the domestic
economy, employment conditions and consumer confidence has picked up and the economy is on a gradual upswing, but
exportation has seen a bit of a resistance.
To drastically strengthen the business structure at MUTOH Group, we have been reforming the business process ofdeveloping, manufacturing, and distributing to increase the earning capacity for the future, and the effect has started toshow.
With the Large Format Inkjet Printers, with product prices have been dropping with major companies entering the field,
we have been developing new products for the textile/industrial market, which is considered a growing field, along withunification of the pan-European measures and furtherance of restructuring logistics.
MUTOH’s LED-UV ink; US11 Ink achieved UL GREENGUARD Gold Certification, which is a strict certification program forproducts that have demonstrated low chemical emissions. Our LED-UV hybrid inkjet printer VJ-1638UH, which iscompatible with this ink, received the Readers’ Choice Top Product Award 2018 for Wide Format & Signage Magazine forthe second year in a row. MUTOH emphasizes in providing safe and high-quality products for our customers, as well as
having responsibility for the environment.
In the 3D printer business, the “bi-matrix” technology in our product Value 3D Resinoid MR-5000, which is a technologythat allows the ability to print two different materials into a single printed object, has been used for various conference
papers, and has shown promise with its use broadening. With modeling materials, we have co-developed a polyacetal
filament using Asahi Kasei’s Tenac, which can be used for food processing operation jigs, enhancing the possibilities ofmodeling. We are a member of the JIS draft committee for the new 3D printer format “FAV.” MUTOH will continue toanswer the expectations of our customers as a 3DP solution partner in our industry.
As a result of the above, in consolidated FY 2018, the net sales dropped to ¥19,220 million (down 4.2% year on year), theoperating income increased to ¥160 million (up 0.4% year on year), and ordinary income decreased to ¥234 million(down 31.2% year on year), due to a foreign exchange loss of ¥140 million. As a result of reversal of deferred tax assets
due to a cut in the effective corporate tax rate in the US, there have been an income tax adjustment of ¥430 million, but
our ordinary income resulted in ¥64 million.
With these results and future business plans considered, the year-end dividend will continue to be set at ¥35 per share.
We will speed up our transition in capturing growth and profitability at the same time.
Your continued support would be greatly appreciated.

1

Consolidated Financial Highlights
Net Sales
FY2018 (70th) Period:

FY201523,449million

FY2016FY2016FY201531,701million

30,514million

FY2018 (70th) Period:

FY201523,917million● FY2017 Period:

FY2017¥20,048 million(337)million

2,155¥28,907 million

FY2016

Total Net Assets

15,075¥64 million(113)million

FY2018 (70th) Period:

2,127 1,998

341million

FY2016

Total Assets¥19,202 million

FY2017

199million

FY2018 (70th) Period:

148million● FY2018 Period:

160million

FY2016

Profit (Loss) Attributable to Owners of Parent
FY2015

Design Measurement Equipment Business,
Real-Estate Leasing Business and Other Businesses¥234 million

FY2018 (70th) Period:

622million

Information Service Business

FY2017183million

Ordinary Income
FY2015

Imaging & Information Equipment Business

20,048million¥160 million

FY2018 (70th) Period:

689million

Net Sales (Millions of Yen)FY2017

20,493million

Operating Income
FY2015Business Segment¥19,202 million

15,780FY201729,898million¥22,272 million

FY201623,484million

2,112● FY2016 Period:

FY2017¥20,493 million

23,019million
2,171

2,216

16,104

Forecast of FY2019 (71st)(Millions of Yen)

Forecast of Consolidated
Business Results

Net Sales

Operating
IncomeOrdinary
Income19,800140150Profit Attributable to
Owners of Parent
100

Figures announced
on May 15, 2019.

In the world economy, we have seen a gradual trend of economic expansion in the Western countries, but fear
factor still exists with trade conflict between the US and China, and Brexit issues.
Under these circumstances, we will shift to the growing market in our large format inkjet printer business bystrengthening our development investment, and releasing a new series of products in our new platform. In sales, wewill strengthen the Western country and Japanese market where we can expect a high profit with the expansion of
the growth field, as well as improving our profitability in Asian markets starting with China and Korea.
With our 3D printer business, we will strengthen our sales in new areas like industrial use, educational facilities, anddental jewelry. Providing high-value-added solutions will lead to a stronger earning power.

2

Overview of Business Segments

78.5%
Imaging &Information
Equipment
Business

Net Sales¥15,075million

11.1%
Information
ServiceBusiness

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

3

In Asia, sales decreased with the economy slowdown in China andKorea, but our effort in improving our earning power showed, as net
sales and segment profit stood at ¥6,094 million (down 2.8% year onyear) and ¥41 million (last year was a ¥268 million loss).
In North America, net sales and segment profit respectively dropped
to ¥3,298 million (down 4.4% year on year) and ¥77 million (down
11.7% year on year) because of price drops within the market withheavy competition.
In Europe, price drops and sales drop in Western Europe had aneffect. It resulted in net sales and segment profit respectively at¥5,682 million (down 6.2% year on year) and ¥106 million (down
62.4% year on year).

In the Information Service Business, sales in existing businesses (theCAD business and systems solutions service business) were mostly flat
YoY, but net sales and segment profit both dropped respectively to¥2,127 million (down 1.3% year on year) and ¥115 million (down
21.8% year on year) due to cost increase.

Net Sales¥2,127million

10.4%
Net Sales¥1,998million

In Design Measurement Equipment Business, although sales slightly
decreased, effort to improve earning power and expense cut resulted
in net sales of ¥1,313 million (down 3.9% year on year) and anincrease in segment profit to ¥227 million (up 78.0% year on year).
In the Real Estate Leasing Business, welling a few properties dropped
sales, but with cost cuts and other efforts, net sales stood at ¥314
million (down 9.7% year on year) and segment profit rose to ¥216
million (up 13.0% year on year).
In Other Business, with slight decrease in sales and purchasing costrising, net sales recorded ¥371 million (down 6.9% year on year) andsegment loss recorded ¥38 million (compared to a segment loss of ¥24
million last year).

MUTOH Original LED-UV Ink “US11 Ink”
Achieves GREENGUARD GOLD Certification

The MUTOH US11 Ink

MUTOH’s original LED-UV ink US11 Ink received the GREENGUARD GOLD

specialty/industrial UVprinters. The US11 Ink is

has

been

specificallydeveloped for MUTOH’s

Certification.

capable of printing on a

UL GREENGUARD has the world’s most strict program for certifications ofwide range of materials

products that demonstrate low chemical emission. It is a widely used standard

and is designed to bendfor design professionals, consumers and others to find low emitting interiorand stretch with thematerials after cured.

products that promote better indoor air quality. Products that achieve
GREENGUARD and GREENGUARD Gold Certification have demonstrated low<Printer Compatibility>
VJ-1638UH
VJ-1638UR
VJ-626UF
VJ-426UF

chemical emissions during normal use.
MUTOH has taken steps to ensure our company and our products areenvironmentally responsible. MUTOH has been committed to provide
customers safe, environmentally-friendly and high-quality products byfollowing industry standards in our product development process.

Layout & Wiring Simulation Software“Patto Layout” Windows 10 Version

No need of CAD knowledge. Just select partsand easily drag and drop to layout!

1. Exterior Wall Layout

3. Wiring Simulation

Layout the exterior wall of the

In wiring mode, you can simulate wiring
telephone lines and LAN cables. Double-clicking
a line will show its length.

building. Various walls ranging
from polygonal shapes andcurved shapes are available.

4. Image Layout
You can insert images with the image button.
By using images as parts, you can be more
expressive.

2. Parts Layout
Layout parts inside and outside
the walls (furniture, items).
Part layout

There are over 500 items from

Image layout

rooms, poles, and items you
can set outside the walls.

5. Calculating Distance and Area
With the distance measuring button and thearea measuring button, you can calculate
the distance and the area.

IASTM (Instrument Assisted Soft Tissue Mobilization) Tool
“HawkGrips” Released
IASTM is the mobilization of soft tissue with the assist of an instrument. By
rubbing the skin, it stimulates the blood stream and washes waste away
without damaging the body. It is a form of assistive massage called
myofascial release.
HawksGrips (Made in USA) is a tool specially designed for IASTM, and it canhelp heal the soft tissue, improving performance, and lightening pain.

Cast from surgical grade stainless steel, designed with input from surgeons
and patients, comes in various sizes!
Textured cross-hatch gripping decreases fatigue and slippage fortherapists!
Used in the NBA and MLB and other overseas!
Used in Japan by professional teams from NPB, J League, B League!

Usage example of HawkGrips

4

Topics
Cutting plotter, Easy to Use with Great Precision“ValueCut II” from the “ValueCut” Series Released
ValueCut II is the newest version of the ValueCut series that provides precise cutting and high productivity. It
is a cutting plotter that is easy to use, and maximizes its functionality. By using it with the ValueJet series, you
can achieve a high-quality Printing & Cutting System at a low price.

ValueCut II Specs
VC2-600: maximum media width 30” (stand & media basket optional)
VC2-1300: maximum media width 62” (stand & media basket included)
VC2-1800: maximum media width 74” (stand & media basket included)

C omes with the AAS 2 system that enables precise contour
cutting by reading the mark on the digital image. Along with 4
point offset function, automatically detects media orientation,and the MUTOH original long run segment cutting function,
continuous cutting function has been added. You can repeat
contour cutting with just one data transmission (sheet feed
direction only).
Cutting speed is top-notch at maximum of 60.2” per second.
You can get high productivity through superior performance.
The cutting force can be selected from 5g to 600g, and supports
a variety of materials from fine and thin materials to thickmaterials that need more force.

VC2-600 / VC2-1300 / VC2-1800

3 types of interface connection. Supports the USB, serial port (RS-232C), and now the Ethernet cable as well. With Ethernet
connection, there is no restriction on PC installation place, and can use multiple ValueCut II with one PC.
You can set two different pen-up movement speed depending on the media. You can choose a slower speed to avoid
misalignment on slippery media. You can also set the speed for contour cutting register mark detection.
Function on disablement of media sensor has also been added for compatibility with transparent media.
Comes with the ValueCut cutting software (FlexiSTARTER ValueCut Edition). You can create cutting data and print cutting
data without a designing software, and easily cut the data using ValueCut II. You can also import data created with designing
software into FlexiSTARTER and automatically add contour lines and register marks and cut it.

5

POM and Other Engineering Plastic Compatible, High TemperatureDual-Head Printer FDM 3D Printer “MF-2500EP II” Released
MF-2500EP II is a top class FDM 3D printer that is compatible with engineering plastic, and is equipped with ahead that is compatible up to 300°C. Modeling size goes up to X 300 x Y 300 x Z 300mm, and can model large
sizes at high speed.
By setting a different material
filament on each head, you
can change materials from thecore and the surface to cut
costs of modeling, and evenmodel using two different
colors.

Modelling with two different materials

With the new duplication
function, you can split themodelling table in half, andcreate two of the samemodels at once, saving lots oftime.
(Modelling size for duplicates
are X 150 x Y 300 x Z 300mm).
Use of duplicate mode

MF-2500EP II

Along with the release of the MF-2500EP II we also released a new engineering plastic
material POM (polyacetal) filament using Asahi Kasei’s Tenac.
With a high temperature compatible head, the MF-2500EP II enables a stabilized
modelling using POM.
The newly provided POM has cleared dissolution tests of food safety, and is in line with
POM filament

the Ministry of Health, Labour Standards, FDA, and European Commission Regulations,and is a material that can be used for food processing operation.
POM is durable and polished, so it is suited for tables and stands for items that can beeasily damaged. It also has a low water absorption rate, a high resistance to solvents andoil, so it is suited for cutting operation coolants (3D printer sheet BuildTak is needed tosecure the model and the table when using POM).

6

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

Year Ended
March 31, 2019Year Ended
March 31, 2018

AssetsCurrent Assets

Cash and Bank Deposits(Millions of Yen)

PeriodAccount

Year Ended
March 31, 2019Year Ended
March 31, 2018

Liabilities
16,275

17,978

8,102

9,441

Notes and Accounts Receivable

3,718

3,857

Inventories

3,598

3,810

Current Liabilities

4,379

4,910

Notes and Accounts Payable

2,483

2,843

Others

1,895

2,067

2,255

1,968

1,881

1,566

Others374

401

Total Liabilities

6,635

6,878

Shareholders’ Equity

23,90824,004

Capital Stock

10,19910,199

Capital Surplus

4,182

4,182

Retained Earnings

11,967

12,062

Treasury Stock(2,440)(2,439)Total Other Cumulative
Comprehensive Income(2,390)(1,815)

Non-Controlling Interests

753

830

Total Net Assets

22,27223,019Total Liabilities and Net Assets

28,90729,898

Non Current Liabilities
Debt for Retirement Benefits

Others855

868

Fixed Assets

12,632

11,919Net Assets

Tangible Fixed Assets

8,020

8,436

Intangible Fixed Assets

521

298

Investments and Other Assets

Investment Securities

4,089

3,184

3,699

2,697

Others389

487

Total Assets

28,90729,898■ Consolidated Statement of Change in Net Assets FY2018 (April 1,2018 - March 31,2019)
Shareholders’ Equity
CapitalStock
Outstanding as of April 1,2018

10,199

CapitalSurplus4,182

Retained
Earnings
12,062

TreasuryStock(2,439)(Millions of Yen)

Total Other
NonCumulative
Total Net
Total Shareholders’ Comprehensive Controlling
AssetsInterests
EquityIncome24,004(1,815)830

23,019Change in Value for Consolidated
Accounting Year
Dividend of Surplus
Profit(Loss) Attributable to Owners of Parent

(159)

(159)

(159)

64

64

64

(1)

(1)

(1)

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

(574)

(76)

(650)

Total Change in Value for Consolidated
Accounting Year

—

(0)

(94)

(1)

(95)

(574)

(76)

(746)

Outstanding as of March 31,2019

10,1994,182

11,967(2,440)23,908(2,390)753

22,272

■ Consolidated Statements of Income
Period(Millions of Yen)

Year Ended
March 31, 2019Year Ended
March 31, 201819,202

20,048Operating Income

160

160

Ordinary Income

234

341

Income Before Income Taxes and Other
Adjustments

194

437

Profit (Loss) Attributable to Owners of
Parent64(337)

Account

Net Sales

Trends of Net Sales (Millions of Yen)FY2016

20,493

FY201720,048FY2018(70th)

19,2020

5,000

10,00015,00020,000Trends of Operating Income (Millions of Yen)FY2016■ Consolidated Statements of Cash Flows
Period(Millions of Yen)

Year Ended
March 31, 2019Year Ended
March 31, 2018

Net Cash from Operating Activities

198

1,672

Net Cash from Investing Activities(1,333)(529)

Net Cash from Financing Activities

(214)

(309)

Net Increase (Decrease) in Cash and Cash
Equivalents(1,339)891

Cash and Cash Equivalents at Beginning of
Period

9,441

8,556

—

(6)

Account

25,000183

FY2017160

FY2018(70th)

160
0

50

100

150

200

Trends of Ordinary Income (Millions of Yen)FY2016FY2017Net Increase (Decrease) due to the Change of
Scope of Consolidation

8,102

FY2018(70th)

234
100

200

300

400

9,441

■ Consolidated Subsidiaries in each Business Segment

Imaging & Information
Equipment Business

341

0Cash and Cash Equivalents at End of PeriodBusiness Segment

199

Company Names

MUTOH INDUSTRIES LTD., MUTOH AMERICA INC.,
MUTOH EUROPE NV, MUTOH NORTH EUROPE S.A.,
MUTOH DEUTSCHLAND GMBH,
MUTOH AUSTRALIA PTY. LTD.

Information Service
Business

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

Design Measurement
Equipment Business

MUTOH INDUSTRIES LTD.

Real-Estate Leasing
Business

MUTOH HOLDINGS CO., LTD., MUTOH ENTERPRISES LTD.

Other Businesses

MUTOH ENTERPRISES LTD.

Trends of Profit(Loss) Attributableto Owners of Parent (Millions of Yen)FY2016FY2017

(113)
(337)

FY2018(70th)
(400)

64
(200)

0

200

8

Company Profile (As of June 27, 2019)
Name:

MUTOH HOLDINGS CO., LTD.

Established:

March 5, 1952

Head Office:

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

10,199 million yen

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

Main Business:

Management of group operations andgroup assets

Website Address:

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

MUTOH Group Companies

MUTOH HOLDINGS CO., LTD.
MUTOH INDUSTRIES LTD.
MUTOH ITEX CO., LTD.
MUTOH ENTERPRISES LTD.
MUTOH FIGURE WORLD INC.

MUTOH EUROPE NV
MUTOH DEUTSCHLAND GMBH
MUTOH NORTH EUROPE S.A.

MUTOH AUSTRALIA PTY. LTD.
MUTOH AMERICA INC.

Directors (As of June 27, 2019)9

Chairman of the Board

Toshihiro Sakamoto

Director
Audit and Supervisory Committee Member

Koichi Endo

President

Nobumasa Hayakawa

Director
Audit and Supervisory Committee Member

Hironori Minoguchi

Managing Director

Yasuhiko Isobe

Director
Audit and Supervisory Committee Member

Hiroshi Tobita

Director

Kazuyuki Kamoi

Director

Teruaki Kato

Director

Masanori Sera

Director

Yusuke Kobayashi

Director

Yoshiyuki Takayama

Stock information (As of March 31, 2019)■ Number of Shares Issuable

17,000,000■ Number of Shares Issued

5,481,818■ Number of Shares per Unit

100

■ Number of Shareholders

6,814■ Major Shareholders
Number of
Ratio of
Shares Held Shareholding(Shares)(%)

Name
TCS Holdings Co., Ltd.

1,322,000

29.05

Sumitomo Mitsui Trust Bank, Limited

210,700

4.63

Mizuho Bank, Ltd.

107,139

2.35

Unisystem Co., Ltd.

92,300

2.03

NTT System Development Co., Ltd.

82,0001.80

Japan Society for Design Engineering

68,058

1.50

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

64,400

1.42

Tomoyuki Toda

60,0001.32

Keiichi Hori

59,1001.30

High-Tech System Co., Ltd.

56,1001.23(Notes) 1. ‌The Company holds 931,449 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
0.53%
22

Breakdown by the Number of Shares Held
Foreign Companies
2.10%
54

Financial
Institutions
12.13%
22

Other Companies
52.85%
197

5 or more
4.21%
388

1 or more
11.92%
4,881

10 or more
10.31%
350

Less than 1
0.52%
1,127

50 or more
3.49%
29

Individuals and Others
32.39%
6,519

100 or more
12.35%
26

500 or more
10.29%
9

1,000 or more
46.91%
4

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 (https://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.