TSE Securities Code : 7999

70 (Fiscal Year 2018)
th1st Half Financial Report
April 1 to September 30, 2018

MUTOH HOLDINGS CO., LTD.

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 to support us.
We hereby present our 70th (Fiscal Year 2018) 1st Half Financial Report,
covering the MUTOH Group's business performance and activities.

Basic Policy
With constant innovationand 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, although the employment and income situation in the US hasmaintained progression, the trade friction between the US and China has resulted in a decrease in exports. This has
affected the Chinese economy. In Europe, financial issues in Italy and Brexit negotiations not going well have led to an
unstable situation. In the domestic economy, company revenue has been stable with a continuing of the depreciation ofthe yen, but natural disasters have stalled the pace of an economic recovery.
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 results have already started to show up.
In the large-format inkjet printer business, along with unification of the pan-European measures and furtherance ofrestructuring logistics, new products our being developed for the textile/industrial market, which is considered a growing
field.
Proven to be compatible with various media, our original multi-purpose ink has been upgraded with the new release of
the MP31 Ink. Compared to UV inks, it is smoother and provides the natural feel of the textile. It is durable against heatand stretching, so it will strongly meet the needs of our customers. We released the hybrid inkjet printer VJ-1627MH
which is mounted with the new ink. We also released a high-speed, high-quality inkjet marking plotter specialized forapparel, AR-9100, which comes with a super-high-speed mode, resulting in high economic efficiency and productivity.
In the 3D printer business, the Bi-Matrix technology in our product Value 3D Resinoid MR-5000, which is a technologythat allows the ability to print two different materials into a single printed object, has been used for various conference
papers, and its use has broadened. As a member of the JIS draft committee for the new 3D printer format “FAV,” wehave taken up the role to lead the industry.
As a result of the above, net sales stood at ¥9,561 million (down 3.7% year on year), operating income came to ¥101
million (¥46 million loss during the same period of the previous fiscal year), and the ordinary income came to ¥149 million(up 118.8% year on year). Profit attributable to owners of parent was ¥205 million (compared to ¥17 million during thesame period of the previous fiscal year).
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¥9,561 million

70th (FY2018) 1st Half Period:

67th (FY2015) Period:
1st Half

23,449million
11,375million

68th (FY2016) Period:

20,493million
9,870million

Operating Income (Loss)
689million
264million

1st Half

69th (FY2017) Period:

Net Sales (Millions of Yen)

20,048million
9,923million

Imaging & Information Equipment BusinessInformation Service Business
Design Measurement Equipment Business,
Real-Estate Leasing Business and Other Businesses¥101 million

70th (FY2018) 1st Half Period:

67th (FY2015) Period:

1st Half Resultsby Business Segment

68th (FY2016) Period:

183million
16million● 70th (FY2018) Period:¥9,561 million

69th (FY2017) Period:

160million(46)million

1,027

Ordinary Income (Loss)¥149 million

70th (FY2018) 1st Half Period:

67th (FY2015) Period:

622million
237million

1st Half

68th (FY2016) Period:

199million(98)million

Profit (Loss) Attributable to Owners of Parent
70th (FY2018) 1st Half Period:

67th (FY2015) Period:

148million
0million

1st Half

Total Assets
70th (FY2018) 1st Half Period:

67th (FY2015) Period:

31,701million

7,623

69th (FY2017) Period:

341million
68million● 69th (FY2017) Period:¥205 million

68th (FY2016) Period:(113)million(194)million¥9,923 million

69th (FY2017) Period:(337)million
17million

1,045¥29,678 million
68th (FY2016) Period:

30,514million

910

963

7,914

69th (FY2017) Period:

29,898million● 68th (FY2016) Period:

Total Net Assets
70th (FY2018) 1st Half Period:

67th (FY2015) Period:

23,917million¥23,094 million
68th (FY2016) Period:

23,484million¥9,870 million

69th (FY2017) Period:

23,019million

1,035

976

7,858

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

Forecast of Consolidated
Business Results

Net SalesOperatingIncomeOrdinary
IncomeProfit Attributable toOwners of Parent

20,50024026020Figures announced
on May 15, 2018.

In the third quarter of the current consolidated fiscal year, it will be hard to make rational reviews for sales estimates
because of effects from trade friction between the US and China, Iran sanctions, and Brexit negotiations not going well.
Therefore, the full-year forecasts released on May 15, 2018 has been maintained. After the degree of the various
effects become clear, and should changes be required for the forecasts, we will make prompt disclosures asrequired.

2

Overview of Business Segments

79.7%
Imaging &Information
Equipment
BusinessNet Sales¥7,623million

10.8%
Information
ServiceBusiness

DesignMeasurement
Equipment
Business,
Real-Estate
Leasing
Business andOther
Businesses

3In Asia, despite going through with a sales price correction policy, the3D printer settling down resulted in a net sales of ¥ 3,113 million(down 1.8% year on year). Although our effort to increase earning
power brought our segment profit to ¥80 million (compared to a lossof ¥271 million in the same period of the previous fiscal year).
In North America, with price drops from competition within themarket rising, net sales and segment profit resulted in ¥1,709 million(down 2.0% year on year) and ¥41 million (down 27.3% year on year),respectively.
In Europe, net sales and segment profit resulted in ¥2,800 million(down 6.7% year on year) and ¥56 million (down 58.5% year on year),respectively due to the effects of price drops.

In the Information Service Business, sales in existing businesses (theCAD business and systems solutions service business) remained
relatively the same, but the rise of cost rate resulted in a decline inprofit. Net sales came to ¥1,027 million (down 1.7% year on year) andsegment profit came to ¥44 million (down 34.2% year on year).

Net Sales¥1,027million

9.5%
Net Sales¥910million

In the Design Measurement Equipment Business, sales decreased butwith the help of distribution cost cuts, net sales stood at ¥549 million(down 4.6% year on year), and segment profit resulted in ¥86 million(compared to ¥4 million in the same period of last fiscal year).
In the Real Estate Leasing Business, net sales and segment profit stoodat ¥155 million (down 5.4% year on year) and ¥103 million (down15.1% year on year), respectively from selling a part of our property.
In Other Business, sales drop and purchasing cost rising from theeffects of yen depreciation, net sales and segment loss stood at ¥204
million (down 7.9% year on year) and ¥23 million (compared to asegment loss of ¥7 million in the same period of last fiscal year).

2018 SGIA Expo “Product of the Year”
ValueJet series receives honor for the 7th consecutive year!
2018 SIGA Expo was held in Las Vegas from October 18th to the 20th. VJ-2638X, VJ-1624X, VJ-1638UH, and VJ-626UF of MUTOH’sValueJet printer series received PRODUCT OF THE YEAR in their respective 4 categories.
SGIA Expo is one of the largest advertisement/ printing
industry related event. Judges evaluate submitted prints
without knowing which company it is from.
19 categories have been added, making it a tougher
competition than ever before. Winning 7 years in a row,and in 4 categories proves that MUTOH has invested heavilyon technological advancements with the ValueJet printers.

Raster Editing Application
EDGESWEEPER Ver.5 Windows 10 compatible
EDGESWEEPER is a professional tool where you can scan a paper plan,and edit it freely just like CAD.
With 3DCAD being adopted at a higher rate, paper plans have become a problem
for planners.
You can always computerize a paper plan by scanning them, but editing it is quite
the task. Scanned data are rarely used, and either paper plans are used with whiteouts, or data is retyped in CAD.
Our raster CAD EDGESWEEPER solves that problem. You can select lines and circles
from complex diagrams. You can temporarily convert it to a vector data (CAD data)and change coordinates and length. By using these functions, you can directly edit ascanned data, and make quick plan changes.

Icing Roller
NICE ICE Large/Small
NICE ICE is roller that can ice, massage, and compress at the same time. It issuited for bringing stressed area to its normal state like in sports. There are
two sizes, large and small, so you can use them depending on the use of thearea.
Ice, massage, and compress at the same time!
The roller is made of stainless steel, making it easy to keep clean.
--- Prevents growth of bacteria and virus.
Just put it in the freezer! ---No need for setting up. Quick use.	‌Freezing for 1 hour will enable a maximum 60 minutes of icing! (Large size)

Before plan edit
After plan edit

NICE ICE

Large size

H 18cmW (longest area) 9.5cm
D (roller area) 5cm

NICE ICE

Small size

H 17cmW (longest area) 6.5cm
D (roller area) 2.5cm

4Topics

New Hybrid Inkjet Printer VJ-1627MH
1,625mm wide, uses the multipurpose ink MP31 Ink
VJ-1627MH is a 1,625mm wide hybrid
inkjet printer for printing rigid and“roll-to-roll” media developed forthe commercial & industrial print andsign & display markets.
It has improved performance andproductivity compared to theprevious model VJ-1617H, and iseasier to operate and maintain.
Using the MP31 Ink allows forprinting on various media, and meetsthe various application needs for the
many diverse markets.
Print samples using MP31 Ink

Inkjet Marking Plotter specialized for apparel
AR-9100 released
Maintaining the high efficiency of its previous model AR-9000, the AR-9100 is ahigh-speed, high-quality inkjet marking plotter specialized for apparel.
Draw up to 1,615mm wide
With the use of a multipoint fixed pressure roller, it can hold thin,
wide papers while keeping the center area down.
By changing the marking setting, you can turn the wind-up function
depending on the thickness of the paper, on and off.
Horizontal cutting is available, enabling various output methods.
Gain economic efficiency and productivity with the super-high-speedmode, which uses less ink.
You can change ink cartridges without work stoppage with the use of
the sub-tank system.

5Engineering plastic compatible
Large scale resin-based 3D PrinterValue 3D Resinoid MR-5000 and Bi-Matrix
Value 3D Resinoid MR-5000 is a fused deposition modeling 3D printer that can model super engineering plastics at400°C. Also the new Bi-Matrix technology (patented), which allows the ability to print two different materials into asingle printed object, has been used for various conference paper themes.
As a member of the JIS draft committee for the new 3D printer format “FAV,” we have taken up the role to lead theindustry.

MR-5000 allows for new materials
Ceramic + Aluminum composite creates the hardness of steel at 1/2.5 the weight(AIST, aluminum makers, car makers considering use)

Ceramic + Aluminum composite – hard as steel

Ceramic parallel cross (Bi-Matrix composite)

Scaffolding member for 3D cell culture (parallelcrossing of protein and polysaccharide)(To be released at the Society for Regenerative
Medicine as a research with national)
A parallel crossed gelatin was createdby composing styrene and gelatin with
MR-5000, then removing the styrene.
You can breed cells by inserting themin to the gaps that look like lines.
Scheduled to be released at aconference presentation.

Various conference presentations using Bi-Matrix compositions have broadened its range of use.
2016 Molding Academic Conference (ceramic + aluminum composite) AIST, Mutoh Industries
2018 Engineering Academic Conference (polyurethane molding quality) Sports related manufacturers
2019 Regenerative Medicine Academic Conference (parallel cross cell culture) National University, Mutoh Industries6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, 2018 September 30, 2017 March 31, 2018
stAccount

AssetsCurrent Assets

Cash and Bank Deposits

18,49017,978

8,758

9,492

9,441

3,752

3,857

Inventories

3,913

4,110

3,810

595

1,134

868

12,961

12,23911,919Tangible Fixed Assets

8,208

8,684

8,436

Intangible Fixed Assets

385

277

298

Investments andOther Assets

Investment Securities

OthersTotal Assets

7

16,7173,449

Fixed Assets

Year Ended
September 30, 2018 September 30, 2017 March 31, 2018
stAccountstLiabilities

Notes and Accounts
Receivable

OthersPeriod 1 Half Period Ended 1 Half Period Ended

st

4,367

3,845

521

29,678

3,278

2,276

1,001

30,7303,184

Current Liabilities

4,629

4,834

4,910

Notes and Accounts
Payable

2,482

2,342

2,843

Others

2,147

2,491

2,067

Non Current Liabilities

1,953

2,178

1,968

Debt for Retirement
Benefits

1,546

1,740

1,566

Others

407

438

401

Total Liabilities

6,583

7,013

6,878

Shareholders’ Equity

24,04924,44824,004

Capital Stock

10,19910,19910,199

Capital Surplus

4,182

4,182

4,182

Retained Earnings

12,107

12,415

12,062

Treasury Stock(2,349)(2,349)(2,349)Total Other Cumulative
Comprehensive Income(1,753)(1,548)(1,815)

Non-Controlling
Interests

798

817

830

Total Net Assets

23,09423,71623,019Total Liabilities and Net Assets

29,67830,73029,898Net Assets

2,697

487

29,898

■ 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, 2018 September 30, 2017 March 31, 2018

Net Sales
Operating Income (Loss)

The 68th
Period9,870

The 69th
Period9,923

160

The 70th
Period(FY2018)

9,561

9,923

20,048101(46)

Ordinary Income

149

68341

Income Before Income
Taxes and Other Adjustments

264

169

437

Profit (Loss) Attributableto Owners of Parent

205

17(337)

20,49320,048
9,561
0

5,000

PeriodAccount(Millions of Yen)

1 Half Period Ended 1 Half Period EndedYear Ended
September 30, 2018 September 30, 2017 March 31, 2018
stst

Net Cash from Operating Activities

609

672

1,672

Net Cash from Investing Activities(1,162)313(529)

Net Cash from Financing Activities

(213)

(215)

(309)

Net Increase (Decrease) in Cash andCash Equivalents

(683)

936

891

Cash and Cash Equivalents at
Beginning of Period

9,441

8,556

8,556

Net Increase (Decrease) due to the
Change of Scope of Consolidation
Cash and Cash Equivalents at End ofPeriod

–

(6)

8,758

9,492

9,441

15,00020,000

Full Fiscal Year

25,000The 69th
Period(46)
160

The 70th
Period(FY2018)(200)

1st Half Year

16183

101
0200

400

600

800

Trends of Ordinary Income (loss) (Millions of Yen)
Full Fiscal YearThe 68th
Period(98)
199

The 69th
Period68Period(FY2018)(200)

1st Half Year341

The 70th–

10,000Trends of Operating Income (loss) (Millions of Yen)

The 68th
Period■ Consolidated Statements of Cash Flows

1st Half Year

Full Fiscal Year

149
0200400600800

Trends of Profit (loss) Attributableto Owners of Parent (Millions of Yen)
Full Fiscal Year

■ Consolidated Subsidiaries in each Business Segment
Business Segment

Imaging & Information
Equipment BusinessCompany Names

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

Information ServiceBusiness

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.

(194)

The 68th
PeriodThe 69th
Period(113)
17(337)

The 70th
Period(FY2018)(400)

1st Half Year

205(200)

02008Company Profile (As of September 30, 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:

https://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 September 30, 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 September 30, 2018)■ Number of Shares Issuable

17,000,000■ Number of Shares Issued

5,481,818■ Number of Shares per Unit

100

■ Number of Shareholders

5,888■ Major Shareholders
Number ofRatio ofShares Held Shareholding(Shares)(%)

Name
TCS Holdings Co., Ltd.

1,322,000

29.05

Sumitomo Mitsui Trust Bank, Limited

210,700

4.63

Mizuho Bank, Ltd.

107,139

2.35

Unisystem Co., Ltd.

92,300

2.03

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

86,000

1.89

NTT System Development Co., Ltd.

71,900

1.58

Japan Society for Design Engineering

68,0581.50

Keiichi Hori

59,1001.30

High-Tech System Co., Ltd.

56,100

1.23

Tomoyuki Toda

55,0001.21(Notes) 1. ‌The Company holds 931,228 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
1.36%
26

Breakdown by the Number of Shares Held
Foreign Companies
2.88%
55

5 or more
4.37%
402

1 or more
10.22%
3,938

Less than 1
0.53%
1,136

10 or more
10.57%
343

FinancialInstitutions
12.65%
23

Other Companies
52.83%
190

50 or more
3.20%
25

Individuals and Others
30.28%
5,594

100 or more
14.74%
32

500 or more
9.47%
81,000 or more
46.90%
410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.