TSE Securities Code : 7999

Fiscal Year 2019
1st Half Financial Report
April 1 to September 30, 2019

MUTOH HOLDINGS CO., LTD.

M e s s a g e to Sha re holde r 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 Fiscal Year 2019 1st Half Financial Report, coveringWith constant innovation

the MUTOH Group's business performance and activities.

and challenging
ourselves,
we contribute to society

B u s i n e ss Situation a nd Ou t c o m esIn the first half of the current consolidated fiscal year, there is fear of a downward risk due to the friction between the USand China, and the Brexit situation. In the domestic economy, the production of the manufacturing industry has beenstagnant. With yen appreciation and global slowdown, exporting has been slow and inbound demand has been on adownward risk.
In these circumstances, our group has been going under a reformation of our operation process for development,
manufacture, and sales to achieve a radical strengthening of the business structure. We are working to increase ourearning power and looking to the future with strategic investments at the same time.
This year, we have released the XpertJet series alongside the usual ValueJet series in the large-format inkjet printerbusiness. The XpertJet series is the new platform for high-quality prints, high production output, and user-friendlyoperation. The first two products for the series are XpertJet 1682SR, the hyper performance double head printer with a7-color ink set, and XpertJet1641SR, the single head model that offers an excellent balance of performance, image qualityand an affordable price range with a 4-color ink set. It has received great reviews from around the world. We also released
a new eco-solvent ink MS41, which ensures easy maintenance and provides a larger color gamut. It is certified the ULGREENGUARD Gold, which is the strictest certification program for volatile organic compound emission tests.
With 3D printers, we have added the desktop type high-definition stereolithography 3D printers ML-100 and ML-80 to ourlineup. It uses a hanging method and a Full-HD DLP UV curing method, which is suited for molding that needs precision
like jewelry design and fine parts in manufacturing. We have been responding to customer expectations as the 3DP
solution partner for the manufacturing industry.
As a result of the above, domestic sales have been on the rise, but with yen depreciation and overseas sales going downwith effects of the friction between the US and China, net sales stood at ¥8,293 million (down 13.3% year on year).
Operating loss came to ¥65 million (¥101 million profit during the same period of the previous fiscal year), but was
improved from the 1st quarter through cost percentage improvement, absorbing developmental and global core system
investments to cut general expenses. Ordinary loss came to ¥62 million (¥149 million profit during the same period of theprevious fiscal year) after allocating dividend income, exchange gain and loss, and other non-operating expenses. Loss
attributable to owners of parent was ¥111 million (compared to ¥205 million profit during the same period of theprevious fiscal year) after allocating subsidiary liquidation fees, loss on revaluation of investments in securities, andcorporate tax.
Going forward, the MUTOH Group will continue to deploy aggressive business strategies aimed at further enhance its
business performance.
We greatly appreciate your support and ask for your continued assistance and cooperation.

1

Consolidated Financial Highlights— Consolidated Business Results —FY2018

FY2017
Net Sales

million

9,923

9,561

8,293

Year-end

20,04819,202—FY2018

FY2017
Operating Incomemillionmillion

(46)

101

(65)

Year-end

160

160—FY2018

Basic Earnings perShare

million

68

149

(62)

Year-end

341

234—FY2018
17205

(111)

Year-end(337)64—million

million45.07(24.46)Year-end(73.56)

14.21

—yen

FY2018FY2019

1st Half Period:

30,73029,67828,677Year-end

29,89828,907—FY2018FY20191 Half Period:

23,71623,094

21,831Year-end

23,01922,272—st

FY2017

Net Assets per Share

FY20193.92

FY2017

Total Net Assets

FY2018

1st Half Period:

FY2017

Total Assets

FY20191 Half Period:st

FY2017yen

FY2019

1st Half Period:

FY2017

Profit Attributable toOwners of Parent

FY2019

1st Half Period:

FY2017

Ordinary IncomeFY20191 Half Period:
stFY2018

FY2019

1st Half Period:

4,992.89

4,899.94

4,639.79

Year-end

4,876.04

4,729.27—Forecast of 71th (FY2019)(Millions of Yen)

Net Sales
Forecast of Consolidated
Business Results

19,800Operating
Income140

Ordinary
Income150

Profit Attributable toOwners of Parent
100

Figures announced
on November 12,
2019.

Regarding the consolidated earnings forecast for the full business year, with so many uncertainties such as the trade conflict
between the US and China, and the uncertainty of the political and economic state within the country, it has been kept thesame as the number set on May 15th, 2019.
If there are any changes to be made, it will be released promptly.

2Overview of Business Segments
Imaging & Information
Equipment Business

6,160
Segment Profit ¥ (179)
Net Sales ¥Information ServiceBusiness

1,174
Segment Profit ¥122
Net Sales ¥million

There has been a cost
percentage betterment
and cost-cutting efforts
in Asia, North America,and Europe, but withtrade conflicts between
the US and China, yesappreciation, and a sales
price drop, we have seen
decr eased sales andprofit.

millionNet Sales

9,000

7,914

7,623
6,1606,000

millionmillionWith existing businesses (the CAD business andsystems solutions service business), measures tostrengthen profitability resulted in net sales
rising 14.3% and segment profit rising 176.4%,
seeing an increase in sales and profit.

3,000

Net Sales
1,5000FY2017FY2018FY2019

1,045

1,027

FY2017FY2018

1,000

1,174

5000

FY2019

Information ServiceBusiness

Imaging & Information
Equipment Business

74.4%

14.2%
11.4%

Design and Measurement
Device Business,
Real-Estate
Leasing Business,and Other

Design and Measurement Device Business,
Real-Estate Leasing Business, and Other

956Segment Profit ¥252
Net Sales ¥millionMeasures to strengthen
profitability in each areas,
rent rate revisions, decreasein wholesale cost and general
expenses have resulted inseeing an increase in sales
and profit overall, despite asmall decline in sales inother businesses.

3

millionNet Sales

1,200

963

910

956

800

4000

FY2017FY2018FY2019

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

1st Half Period Ended 1st Half Period Ended Year Ended
September 30, 2019 September 30, 2018 March 31, 2019

■Consolidated Statements of Income
PeriodAccount

1st Half Period Ended 1st Half Period Ended Year Ended
September 30, 2019 September 30, 2018 March 31, 2019

8,293

9,561

19,202

Cost of Sales

5,516

6,405

12,978Selling, General and
Administrative
Expenses

2,843

3,054

6,063

(65)

101

160

34774

(62)

149

234

Extraordinary Profit

9170

190

4,379

Extraordinary Losses

955

230

1,953

2,255

Income Before Income
Taxes and Other
Adjustments

(62)

264

194

21,831

23,094

22,272

Income Taxes

3138

142

Shareholders’ Equity

23,63724,04923,908

Profit Attributable toNon-ControllingInterests

1720(12)

Total Other Cumulative
Comprehensive Income(2,527)(1,753)(2,390)

Profit (Loss)
Attributableto Owners of Parent

(111)

205

64

721

798

753

28,677

29,67828,907

Current Assets

15,297

16,717

16,275

Fixed Assets

13,38012,961

12,632

Tangible Fixed Assets

8,529

8,208

8,020

Intangible Fixed Assets

683

385

521

4,166

4,367

4,089

Total Assets

28,677

29,67828,907

Total Liabilities

6,845

6,583

6,635

Current Liabilities

4,582

4,629

Non Current Liabilities

2,263

Investments andOther AssetsTotal Net Assets

Non-ControllingInterests
Total Liabilities and Net Assets■ Consolidated Statements of Cash Flows
PeriodAccount

Net Cash from OperatingActivities
Net Cash fromInvesting Activities(Millions of Yen)

1st Half Period Ended 1st Half Period Ended Year Ended
September 30, 2019 September 30, 2018 March 31, 201992609

198(517)(1,162)(1,333)

Net Sales(Millions of Yen)

Operating Income(Loss)Non Operating Profitand Loss
Ordinary Income■Consolidated Subsidiaries in each Business Segment
Business Segment

Company Names

Imaging & Information
Equipment Business

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

Net Cash fromFinancing Activities

(216)

(213)

(214)

Information
Service Business

Cash and Cash Equivalents at
End of Period

7,400

8,758

8,102

Design Measurement
Equipment Business

MUTOH INDUSTRIES LTD.

Real-Estate Leasing
Business

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

Other Businesses

MUTOH ENTERPRISES LTD.

4Topics“Built for Professionals”
Eco Solvent Printer
2 High-quality, High-resolution, Eco-solvent printers released

1682SR /1641SR

DEBUTS!
Single head model: XPJ-1641SR(4-slot 4-color)“Built for Professionals”
with Made in Japan
Quality

Double head model: XPJ-1682SR(8-slot 4-color/7-color)5Newly designed for easy maintenance andfriendly use!
Multistep Pressure
Mechanism

Easy to use ink holder
with a new handle

Pressure is available in 4
different levels of “High,Middle, Low, and Partial,”
Available media to feed has
grown like never before.

Easily exchange inks with front-access

LED guide operation panel
With an organic EL display
with high visibility andstatic touch panel, it iseasy to use.

LAN cable and power outlets isplaced to be easily accessible

LED lights up tonotify low ink level“Inner LED lighting” allows checking operating
conditions and printing conditions

Network connector

Maintenance ability is increased with a wider opening.
With LED lighting inside, it is easy to check the media.

AC inlet terminal

6Topics

MUTOH original eco-solvent ink MS41 Ink
achieves UL GREENGUARD GOLDUL GREENGUARD is the strictest certification programfor volatile organic compound emission tests.
Products that are GREENGUARD certified or GREENGUARDGOLD certified have a lower than standard chemicalemissions.

LED-UV ink US 11 Ink was the last ink to becertified
MUTOH addresses creating environment friendly,
and top-quality products for our customers as a toppriority.

7

ValueJet 1627MH was awarded the Best Wide-format
Multipurpose Printer award at the European Digital Press
Association Awards

EDP Award 2019Best Wide-format Multipurpose Printer

VJ-1627MH
The European Digital Press
Association (EDP) is andassociation that covers 27 Europeancountries, reaching more than half amillion readers in Europe. The EDP Awards
is the most prestigious and valuable
technical award for the digital production business given to products that have highachievement, quality, and cost efficiency.

High-definition stereolithography 3D
printers with 50μm and 40μm resolution
ML-100, ML-80
Stereolithography 3D printers with beautiful and smooth

ML SERIES

modeling.
By using the MUTOH slicer soft, you can achieve smoothness
like never before with
ML-100 and ML-80.
Modeling productsthat need precise
measurements orsmooth surfaces cannow be achieved.

8Company Profile (As of September 30, 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 EUROPE NV
MUTOH DEUTSCHLAND GMBH
MUTOH NORTH EUROPE S.A.

MUTOH AUSTRALIA PTY. LTD.
MUTOH AMERICA INC.

Directors (As of September 30, 2019)9

Chairman of the Board

Toshihiro Sakamoto

Director
Audit and Supervisory Committee Member

Koichi EndoPresident

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 September 30, 2019)■ Number of Shares Issuable

17,000,000■ Number of Shares Issued

5,481,818■ Number of Shares per Unit100■ Number of Shareholders

5,772

Breakdown of Shareholders
Securities Companies
1.63%
26

Breakdown by the Number of Shares Held
Foreign Companies
2.33%
52

5 or more
4.36%
401

1 or more
9.95%
3,862
Less than 1
0.51%
1,112

10 or more
9.86%
326

FinancialInstitutions
13.19%
21
Other Companies
52.78%
188

50 or more
2.91%
24

Individuals and Others
30.06%
5,485

100 or more
14.14%
34

500 or more
9.44%
81,000 or more
48.82%
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 (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 TrustBank, 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.