TSE securities code : 7999

66th (Fiscal Year 2014)
Financial Report

April 1, 2014 to March 31, 2015

MUTOH HOLDINGS CO., LTD.

M e s s age 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 66th (Fiscal Year 2014)
Financial Report, covering the MUTOH Group'sbusiness performance and activities.
President

Nobumasa Hayakawa

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

B u s i ne ss Situation a n d Ou t c o m es
In the current consolidated fiscal year, the economies in Europe and the US sustained a gradual recovery, while those of
China and other emerging countries in Asia continued to expand, despite a slower growth rate. That said, factors such as
prolonged geopolitical risks caused by political instability in Eastern Europe and the Middle East, stagnant consumer
spending in Japan and higher material costs are leading to concerns of an economic downturn.
Against this background, in our core large-format inkjet printer business, the “ValueJet” series won the “PRODUCT OF
THE YEAR” award at the SGIA (Specialty Graphic Imaging Association) Expo (the industry’s largest exhibition in the US) for
the third consecutive year, reflecting the market’s extremely positive reception of MUTOH’s large-format inkjet printers at
graphic sign expos both in Japan and overseas. We delayed the shipment of some of our new product models by several
months over initial plans to ensure safety, but worked to expand sales by strengthening our product lineup with theintroduction of four new product models.
In the 3D printer business, we focused on product development with the aim of enhancing brand strength and the
product line-up, despite increasingly severe price competition for personal 3D printers. We made upfront investments to
expand our business in the future. In the personal 3D printer “Value3D MagiX” segment, which uses fused deposition
modeling (FDM), we launched the MF-2000, equipped with a double head, in the first half of the fiscal year, followed in
the second half by the MF-500, an entry model equipped with MUTOH’s original head. We actively expanded production
models, and in the second half of the year announced a mold sample for a metal 3D printer employing the arc welding
method developed in a collaboration between industry and academia. This unprecedented use of the arc welding method,which makes possible a low-cost metal 3D printer with low running costs and a high speed, has met with an enthusiastic
response. Moreover, we made efforts to expand the business with the start of the 3D dress-up figure print service “Value
3D Figure World,” which is a total 3D print service solution, and also expanded our chain and began opening booths at
various events.
As a result of these factors, in terms of the consolidated business performance for the fiscal year under review, net sales
stood at ¥23,475 million (up 1.6% year on year), operating income came to ¥1,306 million (down 19.9% year on year),and ordinary income decreased 32.8% to ¥1,354 million. This can be attributed to the impact of shipment delays for someproducts and an increase in upfront investments, which offset the positive impact of improvements in the businessenvironment resulting from a weak yen, etc. The company recorded a ¥2,751 million gain as extraordinary income
resulting from the transfer of benefit obligations relating to the employees’ pension fund (past portion), and as a result net
income of ¥2,684 million was recorded for the fiscal year (up 11.8% year on year).
The Company has decided to increase dividends by ¥2 and distribute year-end dividends of ¥7 per share to ourshareholders, in appreciation of their support to date.
We greatly appreciate your support and ask for your continued assistance and cooperation.

1

Consolidated Financial Highlights
Consolidated net sales
66th (FY2014) period:

63rd (FY2011) period:

20,441million¥23,475 million

64th (FY2012) period:

17,982million

Business Segment
Net Sales (Millions of yen)

65th (FY2013) period:

Imaging & Information Equipment Business

23,115million

Information Service Business
Real-Estate Leasing Business and Other Business

Consolidated operating income
66th (FY2014) period:

63rd (FY2011) period:

653million

64th (FY2012) period:

140million

Consolidated ordinary income
66th (FY2014) period:

63rd (FY2011) period:

1,306million

715million

66th (FY2014) period:(425)million

261million

66th (FY2014) period:

63rd (FY2011) period:

27,028million

18,601million

2,282 1,990

19,20265th (FY2013) period:

2,014million● 65th (FY2013) period:

65th (FY2013) period:¥23,115 million

2,399million¥32,027 million

27,363million

66th (FY2014) period:

63rd (FY2011) period:

1,630million

2,154 2,098

64th (FY2012) period:

Consolidated net assets¥23,475 million

65th (FY2013) period:¥2,684 million

64th (FY2012) period:

Consolidated gross assets● 66th (FY2014) period:¥1,354 million

64th (FY2012) period:

Consolidated net income (loss)
63rd (FY2011) period:¥1,306 million

65th (FY2013) period:

32,953million

18,862¥25,061 million

64th (FY2012) period:

19,170million● 64th (FY2012) period:

65th (FY2012) period:

21,446million¥17,982 million
1,960

1,850

14,171

Projections for the next period(Millions of yen)

Consolidated
projections

Net sales

OperatingincomeOrdinary
incomeNet income attributable tothe ordinary equity holdersof the parent entity

26,000

1,300

1,350

850

Figures announced
on May 15, 2015.

Although the global economy remains on a modest recovery trajectory overall, the outlook is uncertain as there arestill concerns over deflation in Europe and an economic slowdown caused by slowing growth rates in emerging
economies.
Within this environment, the MUTOH Group aims to expand its product lineup and increase sales by actively
introducing new large-format ink jet printers and 3D printers to the market. On the profit/loss side, we willcontinuously cut costs, but we anticipate an increase in manufacturing costs as a result of higher materials costs.
Despite that, we will continue to make aggressive investments in our development to ensure our sustainable
expansion into the future.

2

Overview of Business Segments
In Asia, despite strong sales to China and other emerging Asian
countries, the impact of shipment delays for some products andhigher development investments led to a 5.1% year-on-year decline

Net Salesin net sales to ¥8,420 million and a 48.5% drop in segment profit to¥511 million.
In North America, thanks to the US economic recovery and theeffect of a weak yen, in addition to aggressive sales activities, net
sales and segment profit stood at ¥3,767 million (up 13.0% year onyear) and ¥348 million (up 98.8% year on year), respectively.
In Europe, sales were up on robust sales and yen depreciation,
but income was affected by more intense price competition. As aresult, net sales and segment profit stood at ¥7,014 million (up5.4% year on year) and ¥412 million (down 2.5% year on year),respectively.

9.7%

In the Information Service Business, sales and income increased in
the CAD business and systems solutions service business due toongoing efforts to strengthen sales in existing businesses. However,start-up costs for the commercialization of the 3D solutions
business in its first fiscal year with a view to the future had an
impact, and net sales and segment profit stood at ¥2,282 million(up 5.9% year on year) and ¥114 million (down 48.6% year onyear), respectively.

81.8%
Imaging &Information
Equipment
Business

Information
ServiceBusiness¥19,202million

Net Sales¥2,282million

8.5%
Real-Estate
Leasing
Business and
Other
Businesses

3

Net Sales¥1,990million

In the Real Estate Leasing Business, operating rates rose, but as aresult of a switchover to internal Group use for some real estate,
net sales and segment profit stood at ¥250 million (down 29.5%
year on year) and ¥186 million (down 21.7% year on year),respectively.
In Other Business, weak consumer spending had a strong impact,
but as a result of proactive sales activities in existing and new
businesses and efforts to reduce costs, net sales stood at ¥1,739
million (down 0.2% year on year) and segment profit of ¥3 million
was recorded (compared to a ¥101 million segment loss in the same
period last fiscal year).

Won “Best New Product” and “Top Product” at theInternational Sign Expo 2015, a US ISA show
MUTOH won two honors at the 2015 International Sign Expo held in Las
Vegas in the US on April 9–11.

Feat!

“Best New Product”
This award goes to the product deemed to be the best of all the new
products exhibited at the expo. Winning the honor was MUTOH’s VJ426UF, a UV ink-compatible desktop ink jet printer. The VJ-426UF allows
users to print on a wide range of media up to 70 mm thick. It uses an LEDUV lamp that offers both small size and long life, creating a new businessfield.

The VJ-426UF,
winner of “Best New Product”,
and the vice president of MUTOH AMERICA“Top Product”
In the Wide-Format Imaging awards, which are determined by votes fromreaders, the VJ-1626UH won “Top Product” in the Hybrid/UV Printer (24”or over) category and VJ-1638X won in the Solvent Printer category.

Software package for integrated production
management ProductionMaster™
ProductionMaster TM was developed using the most recent Web technology
as an integrated production management package covering every step ina factory’s manufacturing process from orders to shipment. This package iseasy to understand and use and can be installed in a short time.
	‌State of completion as production management can be raised step-by-step	‌PDCA management cycle can be followed precisely, leading directly torapid response and improved productivity	‌Mechanisms set up so that site conditions and irregularities are
identified	‌Key performance indicators and monthly statistical materials can beviewed on graphs and downloaded for analysis
	‌Compatible with multiple languages and bonded parts, making it very
useful in overseas factories
	‌Since it’s a Web-based system, it can link different sites via the Internet	‌Replete with functions that make the system easy to use (individual
settings, compatibility with company’s own terms, etc.)

In-room internal illumination signboard
Ultra high-luminance light panel
Ultra high-luminance light panels are in-room internal illumination
signboards with a surface luminance of 6,000 lux that require no
dedicated media films.
It shines with a beautiful brightness even on normal coated paper.
	Surface-emitting panel that illuminates evenly	Proprietary light guide panel technology achieves even illuminationand thinness	Easy to replace and update posters	Simple to replace by opening the four sides of the front frame	LED saves energy, ensures ultra long life and is economical and gentle
on the environment	Thin and light weight so that it can either be set in place or hung up	Compatible with various sizes (optical characteristics vary depending onsize)	Compatible with various sizes to meet your requirements, in addition
to A1 and B1 sizes

ProductionMaster™ covers every aspect of the production process
Order placement
and shipping
management

Production
planning

Finished Products
inventory
management

Links with InventoryMaster FG(Finished products inventory
management module)(optional)

MRP

Purchasing
management

Manufacturing
management
Links with InventoryMaster WIP(Process management module)(optional)

Standard
information
management

Raw materials
inventory
management

Cost management(Optional)

Links with InventoryMaster RM(Raw materials Inventory management module)(optional)

Used in storesfor signs andmenu stands

Highlight presence at
exhibitions
Create bright exhibition
booth
Used for product and researchannouncements, explanatory panels,
and showroom exhibits

4Topics
Garment printerRelease of 4-color VJ-404GT and 5-color VJ-405GT
The 4-color VJ-404GT and 5-color VJ-405GT will begin to be sold from late June as a garment printerable to print directly on textiles such as cotton t-shirts, jeans and tote bags.
Since plates are not required, it is immediately compatible with single-issue original products, andmany colors and gradations can easily be shown.
The main features are as follows:	The 4-color (CMYK) machine VJ-404GT is compatible with both light colors
and white media.
	The 5-color (CMYKW) machine VJ-405GT is compatible with light-colored,
white and dark-colored media.
	Maximum print field is 400×585 mm
	Comes with print drive and layout applications for Windows as standard toensure ease of use
	7-inch LCD touch panel makes printer easy to use	Simple settings to customize fixtures ensures compatibility with various
applications
	Removable platen in three sizes (small, medium and large) available (medium
size is standard attachment)
VJ-404GT
VJ-405GT
Garment printer

Focus on ensuring ease of use
with simple layout applications!

5

Navigation screen

Select printing mode

Select picture• Select platen size
• Imaging settings, etc.

• Color printing• White + color printing• White printing[compatible format]
.jpg
.gif
.png
.tiff
.bmp, etc.

Production typeRelease of “Arc welding metal 3D printer”
Based on the results of collaborative research with the Tokyo University of Agriculture andTechnology, MUTOH developed a new type of metal 3D printer using the arc welding method, andannounced this success in January. We plan to release the product in the Fiscal Year 2015.
Compared to conventional metal 3D printers, this product achieves both lower price and lower cost.

High speed, high durability andlow cost achieved!
	‌Arc welding method makes high output and high-speed
molding possible	‌Strength is equivalent to bulk material in accordancewith normal arc welding	‌Uses welding wire sold in the market as mold material
Low cost
Large physical property data base
Simple to handle and manage
	‌Near net shape can be molded using hard-to-cut materials
and expensive materials	‌Mold to a shape close to the final shape to reduce timeand materials
	‌Enables “additional molds” for existing products	‌Reduce time and cost by adding molds for existingproducts“Arc welding metal 3D printer”

Mold samples

Example of arc-welding molding process6Consolidated Financial Statements■ Consolidated Balance Sheets
Account(Millions of yen)

Period FY2014 Period

FY2013 Period

As of March 31, 2015

As of March 31, 2014

AssetsCurrent assets

Cash and bank deposits(Millions of yen)Account

Period FY2014 Period

FY2013 Period

As of March 31, 2015

As of March 31, 2014

Liabilities
20,563

20,350

8,597

9,730

Notes and accounts receivable

4,295

4,832

Inventories

5,533

4,225

Current liabilities

5,179

5,949

Notes and accounts payable

3,036

3,512

Others

2,142

2,436

1,787

5,557

1,277

5,049

Others509

507

Total liabilities

6,966

11,506

Shareholders’ equity

25,206

22,731

Capital stock

10,19910,199

Capital surplus

4,182

4,181

Retained earnings

13,165

10,684

Treasury stock(2,340)(2,334)

Total other cumulative
comprehensive income(1,036)(2,011)

Minority interests

890

727

Long-term liabilities
Debt for retirement benefits

Others

2,137

1,562

Fixed assets

11,463

12,603

Net assets

Tangible fixed assets

8,395

8,499

Intangible fixed assets

197

173

Investments and other assets

Investment securities

2,870

2,328

3,930

1,997

Others541

1,933

Total net assets

25,061

21,446

Total assets

32,027

32,953

Total liabilities and net assets

32,027

32,953■ Consolidated statement of change in net assets FY2014 (April 1, 2014 – March 31, 2015)

(Millions of yen)

Total other cumulative
Shareholders' equity
comprehensive
Capital stock Capital surplus Retained earnings Treasury stock Total shareholders’ equity
incomeOutstanding as of April 1, 2014

10,1994,181

Cumulative impact of changes inaccounting policy
Balance at beginning of period
reflecting changes in accounting policy

10,684(2,334)26
10,1994,181

10,711

22,731(2,011)26(2,334)22,757(2,011)

Minority
interests

Total net
assets727

21,4466

33

734

21,479Change in value for consolidated
accounting year
Dividend of surplus

(229)

(229)

(229)

FY2014 net income

2,684

2,684

2,684

(7)

(7)

(7)

0

1

1

Acquired treasury stock
Disposed treasury stock0

Change in value for consolidated accounting
year for items other than capital stock (net)

7

975

156

1,132

Total change in value for consolidated
accounting year

—

0

2,454

(6)

2,448

975

156

3,581

Outstanding as of March 31, 2015

10,1994,182

13,165(2,340)25,206(1,036)890

25,061

■ Consolidated statements of income
PeriodAccount(Millions of yen)

Year ended
March 31, 2015

Year ended
March 31, 2014

23,475

23,115Net sales
Operating income

1,306

1,630

Ordinary income

1,354

2,014

Income before income taxes
and minority interests

4,119

2,100

Net income

2,684

2,399

Trends of net sales (Millions of yen)The 64th
period17,982The 65th
period23,115

The 66th
period(FY2014)23,4750Period(Millions of yen)

Year ended
March 31, 2015

Year ended
March 31, 2014

Net cash from operating activities

(487)

2,034

Net cash from investing activities

(477)

204

Net cash from financing activities

(120)

(155)

Account

10,00015,00020,00025,000Trends of operating income (Millions of yen)The 64th
period■ Consolidated statements of cash flows

5,000

140

The 65th
period

1,630

The 66th
period(FY2014)

1,306
0

500

1,000

1,500

2,000

Trends of ordinary income (Millions of yen)

Net increase (decrease) in cash and cash
equivalents(1,133)

2,563

Cash and cash equivalents at beginning of
period

9,730

7,166

Cash and cash equivalents at end of period

8,597

9,730

The 64th
period715

The 65th
period2,014

The 66th
period(FY2014)1,354
0■ Consolidated subsidiaries in each business segment
Business segment

Imaging & Information
Equipment BusinessCompany names

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.

Information Service
Business

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.

500

1,000

1,500

2,000

2,500

Trends of net income (Millions of yen)The 64th
period261

The 65th
period2,399

The 66th
period(FY2014)

2,684
0

500

1,000

1,500

2,000

2,500

3,000

8

Company Profile (As of June 26, 2015)
Name:

MUTOH HOLDINGS CO., LTD.

Established:

March 5, 1952

Head office:

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

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

10,199 million yen

Main business:

Management and assets management of
the Group companies

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 June 26, 2015)

9

Masanori Takayama

Chairman of the Board

Hajime Tatsuzawa

Director
Audit and Supervisory Committee Member

Nobumasa Hayakawa

President

Kazuyuki Kamoi

Director
Audit and Supervisory Committee Member

Yoichi Abe

Managing Director

Hiroshi Tobita

Director
Audit and Supervisory Committee Member

Hisayoshi Aoki

Managing Director

Masanobu Takeda

Director

Toshihiro Sakamoto

Director

Yoshiyuki Takayama

Director

Yoshihiko Baba

Director

Stock information (As of March 31, 2015)■ Number of shares issuable

170,000,000■ Number of shares issued

54,818,180■ Number of shares per unit
■ Number of shareholders

1,000
7,005

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

Name
TCS Holdings Co., Ltd.

13,220,000

28.81Mizuho Bank, Ltd.

2,071,399

4.51

Eiji Mutoh

1,580,586

3.44

Sumitomo Mitsui Trust Bank, Limited

1,457,000

3.17

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

1,196,000

2.61

Unisystem Co., Ltd.

923,000

2.01

NTT System Development Co., Ltd.

712,000

1.55

Keiichi Hori

591,000

1.29

High-Tech System Co., Ltd.

541,000

1.18

Ikuko Mutoh

388,6030.85(Notes) 1. T he Company holds 8,924,319 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
1.89%
42

Breakdown by the number of shares held
Foreign companies
1.24%
52

1 or more
12.41%
4,710

10 or more
9.91%
337

Less than 1
0.62%
1,436

50 or more
2.82%
24

Financial
institutions
13.86%
29
Other companies
51.42%
223

5 or more
4.94%
455

Individuals and others
31.59%
6,659

100 or more
13.65%
34

500 or more
3.75%
31,000 or more
51.90%
6

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

Mail 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.