TSE Securities Code : 7999

MUTOH HOLDINGS CO., LTD.

69 (Fiscal Year 2017)
th1st Half Financial Report
April 1 to September 30, 2017

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 69th (Fiscal Year 2017) 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 consoled fiscal year, although it is showing a recovery trend, geopolitical risks are stillrooming around, starting with the Asia Pacific regions. In the US, the employment situation has continued to makeprogress, resulting in an upswing in economy. Europe has seen a recovery trend with a steady domestic demand, but
uncertainty with the economy is still strong in the UK with affects from Brexit. The recovery trend in China and other Asianemerging countries that started from the second half of last year seems to have settled.
Our Group went under a organizational restructuring with strengthening the management base and speeding up thedecision-making process in mind. Management reforms of development, manufacturing, and distribution have resulted incompressing inventory and cost reductions. Although, major manufacturers have started to enter the large-format inkjet
printer market worldwide. This has led to a fiercer competition, and products have seen a falling in prices. Amid thissituation, product range and target fields will be re-examined to strengthen our earning capacity.
In the large-format inkjet printer business, one of the largest sign and display related event in the world, 2017 SGIA Expo
was held in New Orleans this October. VJ-1638X, VJ-1638UH, and VJ-626UF of MUTOH’s ValueJet printer series received“Product of the Year” in 4 categories. This is the 6th straight year the a ValueJet printer received an award at the expo,
which proves that the ValueJet printers are of high-performance, high quality, and the efforts we put into the MUTOH
products have been appreciated.
In the 3D printer business, we released ML-200, a stereolithography 3D printer with Full HD DLP, in September. In August,
we revamped our showroom to showcase the new fast 3D printer that was released by the inkjet printer giant HP Inc., andprovide a solution service with the said product.
As a result of the above, net sales stood at ¥9,923 million (up 0.5% year on year). As part of our earning structuralreform, we had an adjustment of production and a rise in cost rate due to the compression of our inventory, and theoperating deficit came to ¥46 million (compared to operating income ¥16 million). With the foreign exchange profit at¥96 million, and other calculating non-operating income, the ordinary income came to ¥68 million (¥98 million loss during
the same period of the previous fiscal year) for the first half of the current consolidated fiscal year. Profit attributable toowners of parent was ¥17 million (compared to net loss of ¥194 million during the same period of the previous fiscalyear).
Going forward, the MUTOH Group will deploy aggressive business strategies aimed at further enhance its businessperformance.
We greatly appreciate your support and ask for your continued assistance and cooperation.

1Consolidated Financial Highlights
Net Sales¥9,923 million

69th (FY2017) 1st Half Period:

66th (FY2014) Period:
1st Half

23,475million
11,467million

67th (FY2015) Period:

23,449million
11,375million

Operating Income (Loss)

1st Half

1,306million
876million

68th (FY2016) Period:

Net Sales (Millions of Yen)

20,493million
9,870million

Imaging & Information Equipment BusinessInformation Service Business
Design Measurement Equipment Business,
Real-Estate Leasing Business and Other Businesses¥(46) million

69th (FY2017) 1st Half Period:

66th (FY2014) Period:

1st Half Resultsby Business Segment

67th (FY2015) Period:

689million
264million● 69th (FY2017) Period:¥9,923 million

68th (FY2016) Period:

183million
16million

1,045

Ordinary Income (Loss)¥68 million

69th (FY2017) 1st Half Period:

66th (FY2014) Period:
1st Half

1,354million
928million

67th (FY2015) Period:

622million
237million

Profit (Loss) Attributable to Owners of Parent
69th (FY2017) 1st Half Period:

66th (FY2014) Period:
1st Half

2,684million
2,443million

Total Assets
69th (FY2017) 1st Half Period:

66th (FY2014) Period:

32,027million

7,914

68th (FY2016) Period:

199million(98)million● 68th (FY2016) Period:¥17 million

67th (FY2015) Period:

148million
0million¥9,870 million

68th (FY2016) Period:(113)million(194)million

1,035¥30,730 million
67th (FY2015) Period:

31,701million

963

976

7,858

68th (FY2016) Period:

30,514million● 67th (FY2015) Period:

Total Net Assets
69th (FY2017) 1st Half Period:

66th (FY2014) Period:

25,061million¥23,716 million
67th (FY2015) Period:

23,917million¥11,375 million

68th (FY2016) Period:

23,484million

1,068 986

9,321

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

Forecast of Consolidated
Business Results

Net Sales

Operating
IncomeOrdinary
IncomeProfit Attributable toOwners of Parent

21,100

420

420

250

Figures announced
on May 19, 2017.

Up to the second quarter of the current consolidated fiscal year, operating income was lower than expected due toa rise in cost rate from the compression of our inventory as part of the earning structural reform. We should beseeing effects of the compressed inventory and cost reductions in the third quarter.
Therefore, there are currently no changes to the full-year forecasts released on May 19, 2017. Should changes berequired for the forecasts, we will make prompt disclosures as required.

2Overview of Business Segments

79.8%
Imaging &Information
Equipment
BusinessNet Sales¥7,914million

10.5%
Information
ServiceBusiness

DesignMeasurement
Equipment
Business,
Real-Estate
Leasing
Business andOtherBusinesses

3In Asia, large-format inkjet printers dropped its price with major
manufacturers entering the market. 3D printer sales have settled
down, and with prices plummeting overall, net sales and segment loss
stood at ¥3,170 million (down 2.5% year on year) and ¥271 million(compared to a loss of ¥149 million in the same period of the previousfiscal year), respectively.
In North America, despite getting some benefit from yen
depreciation, price drops with major manufacturers entering themarket decreased sales and profit, resulting in net sales and segment
profit at ¥1,743 million (down 3.5% year on year) and ¥57 million(down 55.9% year on year), respectively.
In Europe, there were effects from geopolitical risks spreadthroughout Europe and price challenges from major manufacturers,
but yen depreciation and cost reduction led to increase in sales andprofit. Net sales and segment profit stood at ¥3,000 million (up 7.3%year on year) and ¥135 million (up 171.6% year on year), respectively.

In the Information Service Business, sales in existing businesses (theCAD business and systems solutions service business) showed a steady
performance, resulting in net sales at ¥1,045 million (up 1.0% year onyear). Aggregation of our subsidiaries last October led to cost
reductions, and resulted in a segment profit of ¥67 million (up 25.0%year on year).

Net Sales¥1,045million

9.7%Net Sales¥963million

In the Design Measurement Equipment Business, net sales stood at¥576 million (down 7.5% year on year). Segment profit resulted in ¥4million (compared to a loss of ¥6 million in the same period of theprevious fiscal year) due to efficient cost reductions.
In the Real Estate Leasing Business, changing some of our properties
in to leasehold properties led to an increase in sales and profit, andnet sales and segment profit stood at ¥164 million (up 27.4% year onyear) and ¥121 million (up 17.6% year on year), respectively.
In Other Business, sales were close to the previous year, but purchasecost rose with yen depreciation. Net sales stood at ¥222 million (down0.7% year on year) and a segment loss of ¥7 million (compared to asegment profit of ¥1 million in the same period of last fiscal year).

“Product of the Year” at the 2017 SGIA Expofor the 6th Consecutive Year!
2017 SGIA Expo was held in New Orleans from October 10th to the 12th. VJ-1638X, VJ-1638UH, and VJ-626UF of MUTOH’sValueJet printer series received “Product of the Year” in 4 categories.
SGIA (Specialty Graphic Imaging Association) Expo is one of the largest sign and display related event in the US for the printing
industry.
Winning 6 years straight at this event is a remarkable accomplishment, and it proves that the ValueJet printers are of highperformance, high quality, and the efforts we put
into the MUTOH products have been appreciated.

An easy to use creation
tool with professional
functions for designers

Drawing the Designer’s Image at Ease
PHOTO EXPERT Windows 10 Compatible

PHOTO EXPERT is perfect for when you want to use part of an existing blueprint, creating a diagram from a blueprint,
measuring dimensions, and creating instructions from blueprints. You can simple scan it, and use all the tools provided.
Simple use‌Easy navigation
with popup
menus‌Enhancedsystem settings

Editing image data

Import/export image data
‌Superimpose
image data
and CAD data,and print out
as oneContinued Use at the Academic Level
Drafting Machine Drafter
The drafting machine Drafter was released in 1953. Transitioning from thebelt pulley style to the XY rail style, it has been used by countless designers. It
was certified as a Mechanical Engineering Heritage by The Japan Society ofMechanical Engineers in 2007. CAD is the mainstream for designing work
today, and MUTOH’s M-Draf series has evolved for continued use. It is often
the case for design sites using CAD to still draw freehand during the thoughtprocess. Therefore, it is important to know how to draft by hand. Many
educational institutes use the Drafter for training freehand drawing.
By learning the basics of drawing by hand, the features and usefulness of CAD
becomes much clearer, making it smoother it fit in at company sites.

‌Import/export
DWG and DXFfiles‌Export meta files(EMF, WMF) andPDF files‌Place image files
via drag anddrop

Drafter MH-1
Mechanical Engineering
Heritage No.21
Certified in 2007

Drafter
LAJ-1000
LAJ-1000L
Drawing classroom

4

Topics
A2-size, Print on Media Up to 150mm ThickUV Flatbed, Inkjet Printer VJ-626UF Released
VJ-626UF is a A2-size UV flatbed, inkjet printer that can print on various surfaces up to 150mm thick. The machine
itself is very compact as well (W1,188 x D1,533.6 x H604.3mm).
UV inks can print on various materials, so this printer would be perfect for on*Dedicated stand is optional
demand printing for the gifts and novelty industry, which need to print small
portions of various products.
- ‌A compact A2-size flatbed model that can print up to 150mm thick.
- ‌Energy efficient UV-LED lamps for long life use.
- ‌Automated elevation system to control the distance of the printer head and themedia is used not only before printing, but during printing as well.
- ‌Set media position using the LED pointer.
- ‌Vacuum table is a standard feature that allows for print stability and accuracy.
- ‌MUTOH’s UV ink has a hard type, and a new stretchable soft type.
CMYK + white and varnish allows for a beautiful, layered printing.
- ‌Support of high quality mode of 1400 x 1400 dpi (16 pass) for high-definition
printing.
- ‌Avoids pigment deposition by periodically circulating white ink (needs constant
power distribution through sleep mode).
- ‌Windows compatible printer driver. Easily print from Office apps like Word,Excel, PowerPoint.
- ‌Software needed for the printer is built-in. Laying out image data and multilayer printing at ease.
- ‌Check printer status at real time with MUTOH’s ValueJet Status Monitor.
- ‌Optional dedicated stand for higher efficiency, and flexibility with installation.

UV Flatbed, Inkjet Printer VJ-626UF

ID cards
Meter panels

Phone cases

Welcome boards

AwardsAccessory cases
Gifts
Direction boards
Color balls

Toy cars

Bring ideas to life
Perfect for gifts, novelties,and industrial printing!

5Loaded with High-Definition Full-HD DLP
Stereolithography 3D Printer ML-200 Released
ML-200 is a stereolithography 3D printer, loaded with Full-HD DLP (Digital LightProcessing). This method can model at once, so a fast and precise modeling ispossible.
Despite being a desktop size, the modeling area goes up to 192 x 108 x 200mm andthe XY resolution is 0.1mm. You can select the layer height from 0.025mm to 0.1mm
for a sharp and smooth modeling.
Great for design tests, prototypes, figures, and other products that needs highprecision.

Stereolithography 3D PrinterML-200

Stereolithography sample

Change in Share Unit Number and Reverse Stock Split
Change in Shareholder Benefit Plan
As of October 1, 2017, our company has changed our share unit number, and performed a reverse stock split according
to the advisable amount set by the National Stock Exchange. The shareholder benefit plan has also been changedaccordingly.

1. ‌Overview of Change in Share Unit Numberand Reverse Stock Split- ‌Share unit number change - - - Change of common

2. ‌Overview of Change in Shareholder BenefitPlan- ‌Intended shareholder – Shareholders with over 100

stock from 1000 to 100.

shares (as of end of March)- ‌Reverse stock split - - - Common stock 1 for 10- ‌Groups - - - Catalogue gifts for these 3 groups- ‌Implementation - - - October 1, 2017(1) 100 to 499 shares - - - 3,000 yen range(2) 500 to 999 shares - - - 5,000 yen range(3) Over 1,000 shares - - - 10,000 yen range

6

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

(Millions of Yen)

Period 1 Half Period Ended 1 Half Period EndedYear Ended
September 30, 2017 September 30, 2016 March 31, 2017
stAccount

AssetsCurrent Assets

Cash and Bank Deposits

18,251

18,689

9,492

8,046

8,796

3,587

4,020

Inventories

4,110

5,117

4,702

Others

1,392

1,499

1,170

11,982

11,642

11,824

Tangible Fixed Assets

8,684

8,701

8,578

Intangible Fixed Assets

277

282

272

Investment Securities

OthersTotal Assets

718,747

3,752

Investments andOther Assets

Year Ended
September 30, 2017 September 30, 2016 March 31, 2017
stAccountstLiabilities

Notes and Accounts
Receivable

Fixed Assets

Period 1 Half Period Ended 1 Half Period Ended

st3,0202,276

744

30,730

2,657

1,957

700

29,894

2,973

Current Liabilities

4,834

4,760

4,850

Notes and Accounts
Payable

2,342

2,887

2,817

Others

2,491

1,873

2,032

Non Current Liabilities

2,178

2,313

2,180

Debt for Retirement
Benefits

1,740

1,892

1,750

Others

438

420

430

Total Liabilities

7,013

7,074

7,030

Shareholders’ Equity

24,44824,513

24,591

Capital Stock

10,19910,19910,199

Capital Surplus

4,182

4,182

4,182

Retained Earnings

12,415

12,47812,558Treasury Stock(2,349)(2,345)(2,348)

Total Other Cumulative
Comprehensive Income(1,548)(2,464)(1,928)

Non-ControllingInterests

817

770

820

Total Net Assets

23,716

22,81923,484

Total Liabilities and Net Assets

30,73029,89430,514

Net Assets

2,205

767

30,514

■ Consolidated Statements of Income
PeriodAccount(Millions of Yen)

Trends of Net Sales (Millions of Yen)

1st Half Period Ended 1st Half Period EndedYear Ended
September 30, 2017 September 30, 2016 March 31, 2017

Net Sales
Operating Income (Loss)

The 67th
Period11,375

The 68th
Period9,870

183

The 69th
Period(FY2017)

9,923

9,870

20,493(46)

16

Ordinary Income (Loss)

68

(98)

199

Income (Loss) Before Income
Taxes and Other Adjustments

169

(205)

102

Profit (Loss) Attributableto Owners of Parent

17(194)(113)

23,44920,493
9,923
0

5,000

10,000PeriodAccount(Millions of Yen)

1 Half Period Ended 1 Half Period EndedYear Ended
September 30, 2017 September 30, 2016 March 31, 2017
stst

16

The 68th
Period183

The 69th
Period(FY2017)

(46)

797

Net Cash from Investing Activities

313

(97)

(246)

Net Cash from Financing Activities

(215)

(385)

(394)

Net Increase (Decrease) in Cash andCash Equivalents

936

(699)

36

Cash and Cash Equivalents atBeginning of Period

8,556

8,519

8,519

The 68thPeriod

(98)
199

Cash and Cash Equivalents at End ofPeriod

9,492

7,820

8,556

The 69thPeriod(FY2017)68(200)

Imaging & Information
Equipment BusinessInformation ServiceBusiness

MUTOH ITEX Co., Ltd., MUTOH INDUSTRIES LTD.,
MUTOH FIGURE WORLD INC.

Design Measurement
Equipment Business

MUTOH INDUSTRIES LTD.

Real-Estate LeasingBusiness

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

Other Businesses

MUTOH ENTERPRISES LTD.

0200

400600800

Trends of Ordinary Income (loss) (Millions of Yen)
Full Fiscal Year

1st Half Year237

The 67th
Period622(200)

MUTOH INDUSTRIES LTD., MUTOH AMERICA INC.,
MUTOH Belgium nv, MUTOH North Europe S.A.,
MUTOH Deutschland GmbH, MUTOH SINGAPORE PTE. LTD.,
MUTOH AUSTRALIA PTY. LTD.

1st Half Year

689

93

Company Names

25,000264672

Business Segment

20,000

Full Fiscal YearNet Cash from Operating Activities■ Consolidated Subsidiaries in each Business Segment

15,000Trends of Operating Income (loss) (Millions of Yen)

The 67th
Period■ Consolidated Statements of Cash Flows

1st Half Year

Full Fiscal Year

0200

400600800

Trends of Profit (loss) Attributableto Owners of Parent (Millions of Yen)
Full Fiscal YearThe 67th
PeriodThe 68th
Period

1st Half Year

0148
(194)
(113)

The 69th
Period(FY2017)(200)

17(100)

0100

200

8

Company Profile (As of September 30, 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 yenManagement 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 SINGAPORE PTE.LTD.
•MUTOH NORTH EUROPE S.A.
•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, 2017)

9Chairman of the Board

Toshihiro SakamotoDirectorAudit and Supervisory Committee MemberHajime Tatsuzawa

President

Nobumasa Hayakawa

Director
Audit and Supervisory Committee Member

Kazuhiro Yamada

DirectorKazuyuki Kamoi

Director
Audit and Supervisory Committee Member

Hiroshi Tobita

Director

Masanori Takayama

Director

Yoshiyuki Takayama

Director

Yusuke Kobayashi

Stock Information (As of September 30, 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

6,489(Notes)	‌Share numbers after the change in share unit number and reverse stock split
after October 1, 2017.
Number of Shares Issuable
17,000,000
Number of Shares Issued
5,481,818
Number of Shares per Unit
100

■ Major Shareholders
Number ofRatio ofShares 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

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

653,000

1.42

Keiichi Hori

591,000

1.29

Japan Trustee Services Bank, Ltd. (Trust Account)

571,000

1.24High-Tech System Co., Ltd.

561,000

1.22(Notes) 1. ‌The Company holds 8,954,502 shares of treasury stock, which isexcluded from the major shareholders listed above.
2. The ratio of shareholding is calculated after excluding treasury stock.

Breakdown of Shareholders
Securities companies
1.04%
27

Breakdown by the Number of Shares Held
Foreign companies
1.47%
54

5 or more
4.74%
437

1 or more
11.51%
4,353

Less than 1
0.54%
1,262

10 or more
11.50%
372

Financialinstitutions
13.17%
25

Other companies
51.26%
198

50 or more
3.27%
26Individuals and others
33.06%
6,185

100 or more
12.65%
29500 or more
6.02%
51,000 or more
49.77%
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 (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.