TSE Securities Code : 7999

MUTOH HOLDINGS CO., LTD.

69 (Fiscal Year 2017)thFinancial Report

April 1, 2017 to March 31, 2018M e s s a ge 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 69th (Fiscal Year 2017)

Basic Policy
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
Despite geopolitical risks and uncertainty spreading amongst the Asia-Pacific region and all over the world, we had
gradual increase in the Western countries this fiscal year. In the domestic economy, there has been a stable depreciationof the yen and employment conditions have continued to grow. Consumer confidence has picked up and the economy ison a gradual upswing.
In MUTOH Group’s business environment, the Large Format Inkjet Printer business has seen a continued price erosion due
to major manufacturers entering the field. New business with textile printing and industrial printing using UV inks has
strengthened.
In the 3D Printing business, diversification of the molding materials has brought an expectation of an expanded market
with creating prototypes and mass-produce components.
To drastically strengthen the business structure at MUTOH Group, we have reformed the business process of developing,
manufacturing, and distributing to increase the earning capacity for the future.
With the Large Format Inkjet Printers, we have unified the pan-European marketing policies, propelled the reformation oflogistics, and strengthened development of new products for the industrial market, which is considered a growing field.
We released 4 new printers: A2 size UV printer for gift and novelties “VJ-626U”, high-quality and high productivity speed
UV-LED printer “VJ-1638UR”, our first large flat-bed UV-LED printer “PJ-2508UF”, multiproduct small lot printer“VJ-628MP”.
With 3D Printers, we released a large resin printing type “ML-200”, a 3D scanner that creates 3D data from photographs“MS-600N/PX”, “temperature sensitive antibacterial new filament” which can be reformed with body temperature, and“ML-48 exclusive high-speed molding resin”. To increase profitability, along with selecting and focusing on developmental
resource, we have signed a partnership agreement with HP Japan Inc. We started selling HP Japan products, and setup
products in Tokyo to provide printing solutions. With 3D Solution Service, we opened “One-Eye Goblin”, which is a
website where you can create original 3D figures from face photos taken on smartphones. Users can enjoy 3D figures
much easier through this site.
As a result of the above, in consolidated FY 2017, the net sales dropped to ¥20,048 million (down 2.2% year on year), theoperating income decreased to ¥160 million (down 12.5% year on year), and ordinary income increased to ¥341 million(up 71.0% year on year). The amount of loss attributable to owners of the parent of FY2017 was ¥337 million (last year
was a ¥113 million loss).
With these results and future business plans considered, the year-end dividend will continue to be set at ¥35 yen per share(reverse stock split of 1 for 10 took place, so essentially the same value as last year).
We will drive with aggressive measures to capture growth and profitability at the same time.
Your continued support would be greatly appreciated.

1

Consolidated Financial Highlights
Net Sales
69th (FY2017) Period:

66th (FY2014) Period:

23,475million¥20,048 million

67th (FY2015) Period:

23,449million

Operating Income
66th (FY2014) Period:

1,306million

67th (FY2015) Period:

689million

Ordinary Income

1,354million

67th (FY2015) Period:

622million

Profit (Loss) Attributable to Owners of Parent
69th (FY2017) Period:

66th (FY2014) Period:

2,684million

Imaging & Information Equipment Business

20,493million

Information Service Business
Design Measurement Equipment Business,
Real-Estate Leasing Business and Other Businesses● 69th (FY2017) Period:

68th (FY2016) Period:¥20,048 million

183million

2,155¥341million

69th (FY2017) Period:

66th (FY2014) Period:

68th (FY2016) Period:¥160 million

69th (FY2017) Period:

Business Segment
Net Sales (Millions of Yen)

148million

15,78068th (FY2016) Period:

199million¥(337) million

67th (FY2015) Period:● 68th (FY2016) Period:

68th (FY2016) Period:¥20,493 million(113)million
2,171

Total Assets
69th (FY2017) Period:

66th (FY2014) Period:

32,027million

31,701million

Total Net Assets
69th (FY2017) Period:

66th (FY2014) Period:

25,061million¥29,898 million

67th (FY2015) Period:

23,917million

2,216

16,10468th (FY2016) Period:

30,514million¥23,019 million

67th (FY2015) Period:

2,112● 67th (FY2015) Period:

68th (FY2016) Period:¥23,449 million

23,484million
2,163 2,188

19,096

Forecast of 70th (FY2018)(Millions of Yen)

Forecast of Consolidated
Business Results

Net Sales

Operating
IncomeOrdinary
Income20,500240

260Profit Attributable to
Owners of Parent
20

Figures announced
on May 15, 2018.

In the world economy, we have seen a gradual trend of economic expansion in the Western countries, but
geopolitical risks in the Middle East and Eastern Asia, America’s trade policy remain to be a fear factor.
Under these circumstances, MUTOH Group will accelerate in creating a business structure that can capture both
growth and profitability. 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 highprofit 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 also strengthen lineups of other companies starting with HP Japan Inc.

2

Overview of Business Segments

78.7%
Imaging &Information
Equipment
Business

Net Sales¥15,780million

10.8%
Information
ServiceBusiness

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

3

In Asia, sales decreased despite price modification because of the 3D
printer market entering a lull. Amount of loss has improved due tocost cuts. Net sales and segment loss stood at ¥6,268 million (down
9.1% year on year) and ¥268 million (compared to a segment loss of¥429 million last year).
In North America, net sales and segment profit respectively dropped
to ¥3,451 million (down 4.4% year on year) and ¥87 million (down
65.9% year on year) due to the effect of price drops within the market
with heavy competition.
In Europe, price drops had an effect but expanding to the industrial
field drove net sales and segment profit respectively to ¥6,059 million(up 8.2% year on year) and ¥282 million (up 81.2% 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¥2,155 million (down 0.7% year on year) and ¥147 million (down
10.1% year on year) due to cost increase.

Net Sales¥2,155million

10.5%
Net Sales¥2,112million

In Design Measurement Equipment Business, LED equipment sales
decreased. Net sales and segment profit dropped respectively to¥1,365 million (down 11.7% year on year) and ¥127 million (down
14.6% year on year).
Vacancy rate dropped in the Real Estate Leasing Business, as net sales
and segment profit respectively stood at ¥348 million (up 32.2% year
on year) and ¥191 million (down 5.1% year on year).
In Other Business, sales decreased slightly, and purchasing cost
increased due to yen depreciation. Net sales recorded ¥398 million(down 2.0% year on year) and segment loss recorded ¥24 million(compared to a segment loss of ¥22 million last year).

360° Direct Print
VJ-626UF Exclusive “Rotary Unit” Released
The “Rotary Unit” is compatible with VJ-626UF, and can print directly
on cylinder shaped media.
360° direct printing on cylinder shaped media
Compatible with flat surfaced, cylinder shaped media that has awidth of 30mm to 360mm, diameter of 30mm to 120mm, and aweight under 1kg.
Dual adjustment roller pitch
Narrow media: diameter 30 to 80mm
Wide media: diameter 60 to 120mm
User friendly
Can check nozzles with units mounted in the dummy table.
Equipment to hold the media down to inhibit misalignment andgain a stable print is included.

Create 3D Figures from Photos“One-Eye Goblin” Website Launched

Just take a picture with your smartphone.
Raise your hair up, and say cheese!
Upload the picture of our face.

Numerous figure design images willshow after about 60 seconds (it will show
up in a single column on the left side on
smartphones).

VJ-626UF exclusive“Rotary Unit”

Cylinder shaped media
print sample

You can create a figure that looks exactly like yourself from a picture.
Access the MUTOH FIGURE WORLD “One-Eye Goblin” Website.
http://www.one-eye-goblin.com/

Select one design image that you like.
(Costumes will change according toseasons)

Confirm the figure image and click thepurchase button! Your figure will be inyour hands in about 2 weeks.

Wrapping-type Knee Supporter“Super Pro Knee Support” by PRO Released“Super Pro Knee Support” is a wrapping-type knee supporter for bothknees, made by PRO. PRO is a top-notch manufacturer that has a 50
year history in the US. Originating from the NFL, one of the most active
professional sport league, PRO is an international sports supporter
brand that is used in over 34 countries.
Uses neoprene which is thermal and durable, making it acomfortable wear.
3 adjustable straps for a strong fix.
Dual-pad firmly fixes the patella, achieving great knee support.
Patella opening allows smooth bending movement.
Free size (34 to 51cm), black color“Super Pro Knee Support” example

4Topics
High Speed UV-LED Inkjet Printer “VJ-1638UR” Released“VJ-1638UR” is a 1,625mm roll to roll high speed UV-LED inkjet printer.
By making it exclusive to roll media, we were able to bring the high quality printing of UV printers at anaffordable price.
‌The
staggered dual print head design and the dual UV lamps on both sides of theprint heads provide maximum print speed of 22.7m2/h (Banner-2 mode).
‌UV-LED lamps consume low energy, leading to longevity.
‌Environmentallyfriendly VOC free MUTOH UV ink, low energy consumption andodorless prints after curing.
‌UV-LED's low-temperature effect makes it compatible with heat sensitive media‌Intelligent interweave print technology “i-Weave UV” offers high print quality‌Standard automatic sheet-off function

High Speed UV-LED Inkjet Printer“VJ-1638UR”‌
Enhancedmaintenance capability with an open/close cover next to themaintenance cover which expands the work space, and make daily maintenanceeasier.
‌User replaceable cleaning wiper‌Ink mist control for stable print operation

MUTOH’s First UV-LED Large Size Flatbed Inkjet Printer“PerformanceJet 2508UF” Debut“PerformanceJet 2508UF” is MUTOH’s first UV-LED large size flatbed inkjet printer. It is compatible withmedia up to 2,540 x 1,250mm (boards), and offers printing for promotional items, panels, show window
displays, directional signage, awards, labels, packaging prototypes and many others.
It will be offered globally through out US, Europe, Asia.
‌4 print heads included as standard with the option to expand to 6 or 8.
‌Staggeredprint head allows 90 m2/h print speed.
(Standard 4 head/2path/600x300dpi/No feather/Draft mode)‌Automaticallydetects thickness of media and adjusts print heads for printing on
substrates up to 100mm (50kg/m2).
UV-LED Large Size Flatbed Inkjet Printer“PerformanceJet 2508UF”‌4 zone vacuum table firmly fixes various media sizes and improves work efficiency‌Automatic
media registration pin system and vacuum table with “blow-back”
feature make handling and positioning of heavy media easy.
‌Maximum resolution of 600x1,200dpi enables high image quality.
‌Uses
UV hard ink (CMYK, White & Varnish) with excellent durability and color
gamut.
‌Standard system to enable printing on media vulnerable to anti-static electricity.

5High Resolution 3D Scanner
3D PhotoScan System “MS-600N/PX” Released“MS-600N/PX” uses 2 digital mirrorless camera with 2,400 dpi quality, and creates a highresolution, high quality 3D data.
‌All-in-one package
Comes with everything you need for scanning‌
Shortscan time
Scan time is just 60 seconds

Easy Automated Process
3D PhotoScan System“MS-600N/PX”

3D data is created automatically with
MUTOH’s original plugin software.

‌ scanning skill neededNo
The turntable will capture the object withcertainty.
‌Compatible size
100mm square to 400mm square(Maximum of 600mm square with added camera)Awarded the Wide Format & Signage Magazine’s
Readers' Choice Top Product Award for 2 Straight Years“ISA International Sign Expo” took place in Florida, US from March 22nd to the 24th. Wide
Format & Signage Magazine’s Readers' Choice Top Product Award 2018 was announced
at the event, and MUTOH’s UV-LED hybrid inkjet printer "VJ-1638UH" was awarded in
the Hybrid Printer/Solvent Printer Category.
This is the second year in a row that “VJ-1638UH” was awarded. This award is voted
by actual dealers and users who used the printers. We believe that “VJ-1638UH” wasrecognized for its all-around quality by the customers.
MUTOH will continue to provide products that will lead the large format inkjet printermarket.

UV-LED Hybrid Inkjet Printer"VJ-1638UH"
Hybrid Printer/Solvent Printer Category6Consolidated Financial Statements■ Consolidated Balance Sheets
PeriodAccount(Millions of Yen)

Year Ended
March 31, 2018Year Ended
March 31, 2017

AssetsCurrent Assets

Cash and Bank Deposits(Millions of Yen)

PeriodAccount

Year Ended
March 31, 2018Year Ended
March 31, 2017

Liabilities
18,133

18,689

9,441

8,796

Notes and Accounts Receivable

3,857

4,020

Inventories

3,810

4,702

Current Liabilities

4,910

4,850

Notes and Accounts Payable

2,843

2,817

Others

2,067

2,032

1,968

2,180

1,566

1,750

Others401

430

Total Liabilities

6,878

7,030

Shareholders’ Equity

24,004

24,591

Capital Stock

10,19910,199

Capital Surplus

4,182

4,182

Retained Earnings

12,062

12,558Treasury Stock(2,439)(2,348)

Total Other Cumulative
Comprehensive Income(1,815)(1,928)

Non-Controlling Interests

830

820

Total Net Assets

23,01923,484

Total Liabilities and Net Assets

29,89830,514

Non Current Liabilities
Debt for Retirement Benefits

Others

1,024

1,170

Fixed Assets

11,764

11,824

Net Assets

Tangible Fixed Assets

8,436

8,578

Intangible Fixed Assets

298

272

Investments and Other Assets

Investment Securities

3,029

2,697

2,973

2,205

Others

331

767

Total Assets

29,89830,514■ Consolidated Statement of Change in Net Assets FY2017 (April 1,2017 - March 31,2018)
Shareholders' Equity
CapitalStock
Outstanding as of April 1,2017

10,199

CapitalSurplus4,182

Retained
Earnings
12,558TreasuryStock(2,348)(Millions of Yen)

Total Other
NonCumulative
Total Net
Total Shareholders' Comprehensive Controlling
AssetsInterests
EquityIncome24,591(1,928)820

23,484

Change in Value for Consolidated
Accounting Year
Dividend of Surplus

(160)

(160)

(160)

Profit(Loss) Attributable to Owners of Parent

(337)

(337)

(337)

(91)

(91)

(91)

0

0

0

1

1

Acquired Treasury Stock
Disposed Treasury Stock(0)

Change of Scope of Consolidation

1

Change in Value for Consolidated Accounting
Year for Items Other than Capital Stock (Net)

7

112

9

122

Total Change in Value for Consolidated
Accounting Year

—

(0)

(496)

(90)

(587)

112

9

(464)

Outstanding as of March 31,2018

10,1994,182

12,062(2,439)24,004(1,815)830

23,019

■ Consolidated Statements of Income
PeriodAccount(Millions of Yen)

Year Ended
March 31, 2018Year Ended
March 31, 2017

20,04820,493

Net Sales
Operating Income

160

183

Ordinary Income

341

199

Income Before Income Taxes and Other
Adjustments

437

102

Profit (Loss) Attributable to Owners of
Parent

(337)

(113)

Trends of Net Sales (Millions of Yen)
The 67th
Period23,449The 68th
Period20,493

The 69th
Period(FY2017)

20,0480

5,000

10,00015,00020,000Trends of Operating Income (Millions of Yen)
The 67th
Period■ Consolidated Statements of Cash Flows
Period(Millions of Yen)

Year Ended
March 31, 2018Year Ended
March 31, 2017

Net Cash from Operating Activities

1,672

797

Net Cash from Investing Activities

(529)

(246)

Net Cash from Financing Activities

(309)

(394)

Account

25,000689

The 68th
Period183

The 69th
Period(FY2017)

160
0

200

400

600

800

Trends of Ordinary Income (Millions of Yen)

Net Increase (Decrease) in Cash and Cash
Equivalents

891

36

Cash and Cash Equivalents at Beginning of
Period

8,556

8,519

(6)

—

9,441

8,556

Net Increase (Decrease) due to the Change of
Scope of Consolidation■ Consolidated Subsidiaries in each Business Segment

Imaging & Information
Equipment Business

622

The 68th
Period199

The 69th
Period(FY2017)341
0Cash and Cash Equivalents at End of PeriodBusiness Segment

The 67th
PeriodCompany Names

MUTOH INDUSTRIES LTD., MUTOH AMERICA INC.,
MUTOH EUROPE NV, MUTOH NORTH EUROPE S.A.,
MUTOH DEUTSCHLAND GMBH,
MUTOH SINGAPORE PTE. LTD.,
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.

200

400

600

800

Trends of Profit(Loss) Attributableto Owners of Parent (Millions of Yen)
The 67th
Period148

The 68th
PeriodThe 69th
Period(FY2017)
(400)

(113)
(337)
(200)

0

200

(Notes)	‌1. ‌We have inherited all businesses from MUTOH ENGINEERING INC. through demerger as ofMarch 30, 2018.
2. ‌MUTOH SINGAPORE PTE.LTD. concluded operation on March 31, 2018.
MUTOH INDUSTRIES, LTD. has taken over all sales.

8Company Profile (As of June 28, 2018)
Name:

MUTOH HOLDINGS CO., LTD.

Established:

March 5, 1952

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

10,199 million yen

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

Main Business:

Management of group operations andgroup assets

Website Address:

http://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.

(Notes) MUTOH BELGIUM NV has changed its name to MUTOH EUROPE NV on January 1, 2018.

Directors (As of June 28, 2018)

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

Yasuhiko Isobe

Director

Teruaki Kato

Director

Yoshiyuki Takayama

Director

Yusuke Kobayashi

Stock information (As of March 31, 2018)■ Number of Shares Issuable

17,000,000■ Number of Shares Issued

5,481,818■ Number of Shares per Unit

100

■ Number of Shareholders

7,021(Notes)	‌Reverse stock split of common stock 1 for 10, and change of share unit number
from 1,000 to 100 took place on October 1, 2017.

■ 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

Eiji Mutoh

158,058

3.47

Mizuho Bank, Ltd.

107,139

2.35

Unisystem Co., Ltd.

92,300

2.03

NTT System Development Co., Ltd.

71,9001.58

Keiichi Hori

59,1001.30

High-Tech System Co., Ltd.

56,100

1.23

Japan Trustee Services Bank, Ltd. (Trust Account 5)51,5001.13

Sigmatron Co., Ltd.

44,4000.98(Notes) 1. ‌The Company holds 930,930 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
0.45%
18

Breakdown by the Number of Shares Held
Foreign Companies
2.21%
61

5 or more
4.64%
429

1 or more
12.26%
5,009

Less than 1
0.54%
1,157

10 or more
11.49%
367

Financial
Institutions
11.62%
23

Other Companies
51.58%
206

50 or more
2.69%
22
Individuals and Others
34.14%
6,713

100 or more
13.87%
28

500 or more
4.73%
41,000 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

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.