TSE securities code : 7999

68 (Fiscal Year 2016)th

1st Half Financial Report
April 1 to September 30, 2016

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 68th (Fiscal Year 2016) 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, as the US economy steadily grew, other areas were affected by UKleaving the EU and other events. This led to a great increase in uncertainty with the economy, and a higher yen trend thatis still continuing. In addition, a stagnant economy is still strongly present in the Asian emerging countries, and theuncertainty with the future economy has not been overcome yet.
Amid this situation, the Group strengthened management foundations and product development with the aim ofcontinuing to improve profitability in the future.
With our core large-format inkjet printer business, we introduced 3 new printers to our lineup: the LED-UV hybrid inkjet
printer “UV-1638UH”, which is compatible both with rigid and roll type medias, high-speed large-format inkjet printer“VJ-1938X”, which can print up to 1.9m (75 inches) wide and is perfect for use in Japan where ikken (1.8m) is commonly
used, and the direct textile inkjet printer “VJ-1938TX”, which is highly compatible with stretch type materials and canprint on numerous textile medias.
One of the largest sign and display related event in the world, 2016 SGIA Expo was held in Las Vegas this September. The
above mentioned “VJ-1638UH” and “VJ-1938TX”, two products released this term, and “VJ-1628X”, which was released
last year were awarded “PRODUCT OF THE YEAR” there. The “ValueJet” series have received the award 5 years straight,
proving that “MUTOH” products have been received highly around the world.
In a plan to strengthen global competiveness, overseas sales subsidiaries were placed under direct affiliation of MUTOH
INDUSTRIES LTD., which is the development and production base, in August. With the integration of development,
production, and sales for large-format inkjet printers, it will lead to a stronger, enhanced global strategy, and a speedy
management.
In the 3D printer business, we released “MF-2500EP”, the industry’s first desktop type 3D printer that supports
engineering plastic such as polycarbonate, with a dual head fused deposition modeling system.
MUTOH will continue to strengthen its brand power, expand our product lineup that reflects customer needs, and makean effort to increase profit.
As a result of the above, net sales stood at ¥9,870 million (down 13.2% year on year), operating income came to ¥16
million (down 93.7% year on year) and ordinary loss came to ¥98 million (¥237 million during the same period of theprevious fiscal year) for the first half of the current consolidated fiscal year. Loss attributable to owners of parent was ¥194
million (compared to net income of ¥0 million during the same period of the previous fiscal year).
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
Net sales¥9,870 million

68th (FY2016) 1st Half period:

65th (FY2013) period:
1st Half

23,115million
10,813million

66th (FY2014) period:

23,475million
11,467million

1st Half results
Business Segment

67th (FY2015) period:

Net Sales (Millions of yen)

23,449million
11,375million

Imaging & Information Equipment BusinessInformation Service Business
Real-Estate Leasing Business and Other Business

Operating income¥16 million

68th (FY2016) 1st Half period:

65th (FY2013) period:

1,630million
655million

1st Half

66th (FY2014) period:

1,306million
876million

Ordinary income (loss)
2,014million
901million

1st Half¥9,870 million

67th (FY2015) period:

689million
264million

1,035 976¥(98) million

68th (FY2016) 1st Half period:

65th (FY2013) period:● 68th (FY2016) period:

66th (FY2014) period:

1,354million
928million

7,858

67th (FY2015) period:

622million
237million● 67th (FY2015) period:

Profit (loss) attributable to owners of parent
68th (FY2016) 1st Half period:

65th (FY2013) period:

2,399million
591million

1st Half

Total assets
68th (FY2016) 1st Half period:

65th (FY2013) period:

32,953million¥(194) million

66th (FY2014) period:

2,684million
2,443million¥11,375 million

67th (FY2015) period:

148million
0million

1,068 986

¥29,894 million

9,321

66th (FY2014) period:

32,027million

67th (FY2015) period:

31,701million● 66th (FY2014) period:

Total net assets
68th (FY2016) 1st Half period:

65th (FY2013) period:

21,446million¥11,467 million¥22,819 million
66th (FY2014) period:

25,061million

67th (FY2015) period:

1,077 915

23,917million

9,474

Forecast of 68th (FY2016)(Millions of yen)

Forecast of consolidated
business results

Net sales

OperatingincomeOrdinary
incomeProfit attributable toowners of parent

24,000

800

800

400

Figures announced
on May 13, 2016.

As we enter the third quarter of the current consolidated fiscal year, in addition to the continued trend of a higher
yen and the stagnation of domestic consumer markets, the recent US Presidential election results have brought
uncertainty worldwide, making it difficult to make rational performance projections at this time.
Therefore, the full-year forecasts are still under calculation, and although numbers released on May 13, 2016 will bemaintained for the time being, should changes be required for the forecasts as the impact of these factors become
clear in the future, we will make prompt disclosures as required.

2

Overview of Business Segments

79.6%
Imaging &Information
Equipment
Business

Net Sales¥7,858million

10.5%
Information
ServiceBusiness

Real-Estate
Leasing
Business and
Other
Businesses

3

In Asia, the lingering economic recession, price fall of large-format
inkjet printers from intensified price competition, and a pause of sales
and price reduction amongst 3D printers, net sales and segment loss
stood at ¥3,252 million (down 18.9% year on year) and ¥149 million(compared to a loss of ¥34 million in the same period of the previous
fiscal year), respectively.
In North America, despite aggressive sales activities, yen appreciation
made a big impact, resulting in net sales and operating income at¥1,807 million (down 16.5% year on year) and ¥130 million (down
36.8% year on year), respectively.
In Europe, we maintained high sales in Northern Europe, but with yen
appreciation and geopolitical risks spread throughout Europe, net
sales and segment profit stood at ¥2,797 million (down 11.1% year onyear) and ¥49 million (down 69.3% year on year), respectively.

In the Information Service Business, sales in existing businesses (theCAD business and systems solutions service business) were mostly at
the level of the previous year and only decreased slightly, and the
profitability of the 3D solutions business improved, resulting in net
sales and segment profit standing at ¥1,035 million (down 3.0% year
on year) and ¥53 million (up 194.0% year on year), respectively.

Net Sales¥1,035million

9.9%
Net Sales¥976million

The Real Estate Leasing Business maintained numbers close to theprevious year with stable operations, and net sales and segment
income stood at ¥128 million (up 1.3% year on year) and 103 million(up 4.1% year on year), respectively.
In Other Business, sales were close to the previous year, and cut down
on costs and improvements of purchase prices affected by yen
appreciation led to net sales standing at ¥847 million (down 1.4% year
on year) and a segment loss of ¥5 million (compared to a segment lossof ¥44 in the same period of last fiscal year).

Maximum print speed of 52m2/h
Print up to 1.9m wide withthe high-speed inkjet printer “VJ-1938X”“VJ-1938X” can print up to 1.9m wide, and achieved a maximum print speed of 52m2/h
with its optimized printing head having staggered disposition.
The overall sharpness and smoothness of the quality has been improved with the useof the “DropMaster Technology” (by inputting the media thickness in advance,bi-directional ink fire timings are automatically recalculated).
Can print up to a 2.8mm thickness, and the head height is adjustable in threedifferent stages
Auto-cut function
Ability to use 1L packs, by using the large capacity ink pack that is sold separately
One can choose from the conventional eco solvent ink and an environment
friendly low-solvent/low-odor “Ultra Value Ink” 1L pack“VJ-1938X”
High-speed, large-format inkjet printerUse of Business Improvement System
FAST system “Kintone”
MUTOH ITEX CO., LTD has become an official partner of Cybozu, Inc.
As a result, it is now possible to propose business improvements combining Cybozu
products and services with MUTOH products.
Particularly the FAST system “Kintone” has service advisor technicians registered inhand, and supports business improvements.
MUTOH itself uses “Kintone” for constructing its task system, and is striving forbusiness improvements.
Customers with tasks below are suitable for use:

Share with
the Team
Database

EfficientOperation

SmoothOperation

Communication

Process

It may be simple, but support in constructing task systems needed
Considering a WEB DB that can link with the cloud-based Garoon that is already inuse.
Want to increase the proportion of the cloud with its efficient cost performance, in
cooperation with the current task system.

Bandage-type supporter
Launch of new black color for “Support Wrap”(3 types in all)
The bandage-type supporter “Support Wrap” comes in three different forms: wrist,
ankle/elbow, and knee/thigh. The black color joins the beige color to enhance its
lineup.
Easy to use like using taping
Washable, and durable for repeated use
Ability to adjust fixing power with its elastic material
Product name

Body part

Width

LengthSupport Wrap Wrist
Support Wrap Ankle&Elbow
Support Wrap Knee

Wrist
Ankle/Elbow
Knee/Thigh

7.5cm
7.5cm
7.5cm

approx. 40cm
approx. 80cm
approx. 150cm“Support Wrap”
Examples of use

4Topics
Launch of the Direct Textile Inkjet Printer “VJ-1938TX”
An entry model, compatible with stretch media“VJ-1938TX” is a direct textile inkjet
printer that uses original textile
pigment ink, and can print up to 1.9m
wide.
Not to mention non-stretch medias
like silk, but it is also compatible withstretch media as well. This opens up
a wide range of use from “fashion
apparel,” “home fabrics” such as
interior decor, and “sports apparel”
such as sports uniforms.
“VJ-1938TX”
Direct textile inkjet printerA single rubber roller has been adopted for its feed roller system.
By placing the rollers on both the upper and lower side, scuffing is
minimalized and a steady and consistent media feed is realized. It
can handle a maximum medial roll weight of 100kg with its feed
and take-up system. You can now easily feed media that was only
compatible with belt system printers.
Print speed has been dramatically increased with its dual staggered
print heads. High speed and high quality printing is now available.
The use of orange, green, and blue spot-color inks enables a rich
expression of color.
A 3-stage head height changer enables a head height of up to
6mm (maximum media thickness 3.5mm), which accommodates a wide range of fabrics.

5

Launch of Desktop 3D Printer “MF-2500EP”
Support for engineering plastics“MF-2500EP” is an in-house developed high-end desktop 3D printer that supports
engineering plastics.
Loaded with dual heads, and inheriting functionality from “MF-2200D” which
can print at 300m x 300m x 300m, we have managed to operate it at 300 degrees
Celsius while supporting engineering plastics. By raising the tabletemperature to 150 degrees Celsius, it has reduced warping as well.
With its characteristic of being durable under high temperature,
the use of polycarbonate, which is a representative of engineering
plastics, enables maintaining mold insert and creating jig that
positions high-temperature substrates that has been implemented
by print substrate implementation makers.
Additionally, filament development other than polycarbonate isunder consideration to cover a wide range of materials.

Samples of engineering
plastics parts“MF-2500EP”
Desktop 3D printer

MUTOH Group Organizational Restructuring Improving sales
efficiency and customer service, and enhancing profitability
Here at MUTOH Group, we have come to a conclusion that speedier decision-making and a stronger unification ofbusiness execution was needed to cope with the ever-changing economic climate. In order to improve sales efficiency
and customer service, and enhance profitability through cutbacks,sales andintegration of development, production, andaggregation of sales points were performed.

 ‌Overview of Integration of Development,
Production, and Sales: ‌Overview of Aggregation of Sales
Points:Overseas sales subsidiaries transferred its shares

As of October 1st, 2016, the 3D printer business,

and were placed under direct affiliation of MUTOH

sales of design drawing equipment, CAD

INDUSTRIES LTD., which is the core subsidiary in thesolution, environmental-friendly productfield of information processing equipment.

business of MUTOH ENGINEERING INC. haveOverseas subsidiaries that were reorganized are thebeen transferred to the core subsidiary, MUTOH

following:

INDUSTRIES LTD. All sales points have been

MUTOH AMERICA INC.

aggregated to MUTOH INDUSTRIES INC. as well.

MUTOH Belgium nv
MUTOH Deutschland GmbH
MUTOH North Europe S.A.
MUTOH SINGAPORE PTE. LTD.
MUTOH AUSTRALIA PTY. LTD.
(Notes) For details regarding the organizational restructuring, please check the disclosed information on our website (http://www.mutoh-hd.co.jp).

6Consolidated 1st Half Financial Statements■ Consolidated Balance Sheets
PeriodAccount(Millions of yen)

Year ended
September 30, 2016 September 30, 2015 March 31, 2016

AssetsCurrent assets

Cash and bank deposits

19,542

19,645

8,046

8,619

8,775

3,729

4,570

Inventories

5,117

5,923

4,948

Others

1,499

1,268

1,352

11,642

12,23812,055

Tangible fixed assets

8,701

9,023

8,867

Intangible fixed assets

282

316

299

Investment securities

OthersTotal assets

7

18,251

3,587

Investments andother assets

PeriodAccount

1st Half period ended 1st Half period ended

Year ended
September 30, 2016 September 30, 2015 March 31, 2016

Liabilities

Notes and accounts
receivable

Fixed assets(Millions of yen)

1st Half period ended 1st Half period ended

2,657

1,957

700

29,894

2,899

2,389

509

31,7802,889

Current liabilities

4,760

5,295

5,438

Notes and accounts
payable

2,887

3,156

3,253

Others

1,873

2,139

2,185

Non current liabilities

2,313

1,761

2,345

Debt for retirement
benefits

1,892

1,272

1,925

Others

420

489

419

Total liabilities

7,074

7,057

7,783

Shareholders’ equity

24,51324,88325,030Capital stock

10,19910,19910,199

Capital surplus

4,182

4,182

4,182

Retained earnings

12,478

12,845

12,993

Treasury stock(2,345)(2,342)(2,344)

Total other cumulative
comprehensive income(2,464)(986)(1,912)

Non-controllinginterests

770

825

800

Total net assets

22,81924,72323,917

Total liabilities and net assets

29,894

31,78031,701

Net assets

2,150

739

31,701

■ Consolidated Statements of Income
PeriodAccount

Net sales
Operating income(Millions of yen)

Trends of net sales (Millions of yen)

1st Half period ended 1st Half period ended
Year ended
September 30, 2016 September 30, 2015 March 31, 2016
The 66th
period11,467

The 67th
period11,375

689

The 68th
period(FY2016)

9,870

11,37523,44916264

Ordinary income (loss)

(98)

237

622

Income (loss) before income
taxes and other adjustments

(205)

336

736

Profit (loss) attributableto owners of parent

(194)

0

148

23,47523,449
9,870
0

5,000

10,000Period

1st Half period ended
September 30, 2016

Account(Millions of yen)

1st Half period ended

Year ended
September 30, 2015 March 31, 2016
2,042

Net cash from investing activities(97)(1,297)(1,599)Net cash from financing activities

(385)

(382)

(392)

Net increase (decrease) in cash andcash equivalents

(699)

(247)

(77)

Cash and cash equivalents at
beginning of period

8,519

8,597

8,597

The 67th
periodCash and cash equivalents at end of
period

7,820

8,349

8,519

The 68th
period(FY2016)

1,306
264
689

0

500

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

Real-Estate Leasing
Business

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

Other Business

MUTOH ENGINEERING INC.,
MUTOH ENTERPRISES LTD.

1,500

Full fiscal year

1st half year928

The 66th
period

1,354
237
622
(98)
0

500

1,500

1,000

Trends of profit (loss) attributableto owners of parent (Millions of yen)
Full fiscal year

Company names

Information Service
Business

1,000

Trends of ordinary income (loss) (Millions of yen)

(500)

Imaging & Information
Equipment Business1st half year

The 68th
period 16(FY2016)

1,386

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.

25,000876

The 67th
period93

Business segment

20,000

Full fiscal year

Net cash from operating activities■ Consolidated Subsidiaries in each Business Segment

15,000Trends of operating income (Millions of yen)The 66th
period■ Consolidated Statements of Cash Flows

1st half year

Full fiscal year

The 66th
period

2,443
2,684
0
148

The 67th
periodThe 68th
period(FY2016)(1,000)

1st half year

(194)
0

1,000

2,000

3,000

8

Company Profile (As of September 30, 2016)
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 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.

Directors (As of September 30, 2016)

9

Chairman of the Board

Masanori Takayama

Director
Audit and Supervisory Committee Member

Hajime Tatsuzawa

President

Nobumasa Hayakawa

Director
Audit and Supervisory Committee Member

Kazuhiro Yamada

Director

Masanobu Takeda

Director
Audit and Supervisory Committee Member

Hiroshi Tobita

Director

Toshihiro Sakamoto

Director

Kazuyuki Kamoi

Director

Yusuke Kobayashi

Director

Yoshiyuki Takayama

Stock Information (As of September 30, 2016)■ Number of shares issuable

170,000,000■ Number of shares issued

54,818,180■ Number of shares per unit

1,000

■ Number of shareholders

6,519■ 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

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

796,000

1.74

NTT System Development Co., Ltd.

719,000

1.57

Keiichi Hori

591,000

1.29

High-Tech System Co., Ltd.

561,000

1.22

Sigmatron Co., Ltd.

444,000

0.97(Notes) 1. ‌The Company holds 8,940,522 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
1.44%
32

Breakdown by the number of shares held
Foreign companies
1.70%
58

5 or more
5.20%
475

1 or more
11.45%
4,255

Less than 1
0.57%
1,346

10 or more
11.49%
375

Financial
institutions
12.63%
26

Other companies
51.44%
205

50 or more
3.67%
29

Individuals and others
32.79%
6,198

100 or more
12.63%
30

500 or more
5.24%
41,000 or more
49.75%
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.