64th (Fiscal Year 2012)

1st Half Financial Report
April 1 to September 30, 2012

MUTOH HOLDINGS CO., LTD.
TSE securities code : 7999

M e s s a g e to S ha re holde rs
We would like to express our sincerest gratitude to all of the shareholders who
have continued to support us.

Basic Policy
With constant innovation

We hereby present our 64th (Fiscal Year 2012) 1st Half Financial Report,
covering the MUTOH Group's business performance and activities.

and challenging
ourselves,
we contribute to society

B u s i n e s s Situation a nd Ou t c o m es
Looking at the economic environment during the first half of the current consolidated fiscal year, there are concerns regarding
the economic outlook due to factors such as the prolonged financial instability in Europe, a slowdown in the growth of emerging
Asian countries that have driven the global economy, and weak performance by Japanese exporters due to protracted yen
appreciation.
Against this background, in our Imaging and Information Equipment Business we have introduced the “ValueCut Series” as new
global strategic models for cutting plotters in the signage industry. In addition to use as a cutting plotter in isolation, the“ValueCut Series” can also be used in combination with the large-format inkjet printer “ValueJet Series” to support professionaluser needs as a low-priced, high-performance print and cut system. Moreover, we have also worked to strengthen our productlineup going into the second half of the fiscal year, through efforts including the development of the “RJ-900X Series,” assuccessor models for the CAD inkjet plotter “RJ-900 Series.” The new models achieve up to 25% higher speeds than previous
models.
In terms of business performance, for our core Imaging and Information Equipment Business, the business environment has beendifficult due to factors including the economic climate in Japan, Europe, and North America, which has yet to fully recover; adecline in OEM production; and the adverse impact of significant yen appreciation on exchange rates. In the Real-Estate Leasing
Business, accompanying the departure of tenants from the Head Office Building, earnings decreased as use of the Head Office
Building was switched to internal use by the Group for the purposes of improving administrative efficiency and accelerating
decision making within the building.
Looking at the consolidated business performance for the first half of the current fiscal year emerging from these circumstances,
net sales stood at ¥8,690 million (down 17.9% year on year) and operating income came to ¥34 million (down 92.6% year onyear) as cost reduction measures were not sufficient to absorb the drop in sales. Meanwhile, due to the posting of exchange
losses of ¥299 million as a result of yen appreciation, an ordinary loss of ¥187 million (compared with ordinary income of ¥680
million in the same period last year) and a net loss of ¥317 million (compared with a net loss of ¥297 million in the same period
last year) were incurred.
During the second half of the fiscal year the MUTOH Group will deploy an aggressive business strategy aimed at the recovery ofbusiness performance.
We greatly appreciate your support and ask for your continued assistance and cooperation.

1

Consolidated Financial Highlights
Consolidated net sales
64th (FY2012) 1st Half period:

1st Half¥8,690 million

61st (FY2009) period:

62nd (FY2010) period:

63rd (FY2011) period:

21,997 million
10,513 million

21,920 million
11,417 million

20,441 million
10,579 million

1st Half resultsby business Segment
Net Sales (Millions of yen)
Imaging & Information Equipment BusinessInformation Service Business

Consolidated operating income
64th (FY2012) 1st Half period:

1st Half

Real-Estate Leasing Business and Other Business¥34 million

61st (FY2009) period:

62nd (FY2010) period:

63rd (FY2011) period:

354 million(2) million

1,202 million
775 million

653 million
463 million● 64th (FY2012) period:¥8,690 million
915

934

Consolidated ordinary income (loss)
64th (FY2012) 1st Half period:

1st Half

62nd (FY2010) period:

63rd (FY2011) period:

325 million(34) million

962 million
553 million

1,306 million
680 million

Consolidated net income (loss)
64th (FY2012) 1st Half period:

1st Half¥(187) million

61st (FY2009) period:

6,840● 63rd (FY2011) period:¥(317) million

61st (FY2009) period:

62nd (FY2010) period:

63rd (FY2011) period:

217 million(269) million

800 million
545 million(425) million(297) million¥10,579 million
915 1,231

8,432

Consolidated gross assets
64th (FY2012) 1st Half period:¥25,182 million

61st (FY2009) period:

62nd (FY2010) period:

63rd (FY2011) period:

28,789 million

28,462 million

27,028 million

Consolidated net assets
64th (FY2012) 1st Half period:● 62nd (FY2010) period:¥11,417 million¥17,755 million

61st (FY2009) period:

62nd (FY2010) period:

63rd (FY2011) period:

19,018 million

19,459 million

18,601 million

900 1,263

9,253

Forecast of results for the full fiscal year
(Millions of yen)

Forecast of consolidated
business results

Net sales

OperatingincomeOrdinary
incomeNet income

21,000

500

500

300

Figures announced on
May 15, 2012.

Due to the difficult business environment that is expected from the third quarter of the fiscal year onward, andmany unstable factors including the prolonged financial instability in Europe, the slowdown in the economy of
emerging countries, and exchange rate fluctuations, it is difficult to make reasonable performance estimates at thispoint in time.
Accordingly, although the full-year forecasts released on May 15, 2012 will be maintained for the time being,
should changes be required for the forecasts as these factors become clear in the future, we will make prompt
disclosures as required.

2

Overview of Business Segments

Net Sales

In Asia, due to the slowdown in the growth of emerging
countries and a reduction in domestic OEM production,
net sales and operating income stood at ¥3,416 million(down 20.5% year on year) and ¥81 million (down 75.1%
year on year), respectively.
In North America, while net sales mostly held steady at¥1,101 million (down 1.9% year on year) due to aggressive
sales activities, operating income came to ¥6 million(down 87.9% year on year) as a result of intensifiedcompetition.
In Europe, as a result of significant yen appreciation and asluggish economy, net sales and an operating loss of¥2,321 million (down 23.0% year on year) and ¥49 million(compared with an operating loss of ¥27 million in thesame period last year) were respectively recorded.

10.8%

Despite a lack of major improvements in domestic businessas a result of the economy not yet fully recovering, due tofactors including the acquisition of new customers
through continual sales reinforcements, net sales of ¥934
million (up 2.1% year on year) were recorded.
Furthermore, as a result of profit structure improvements
and cost reduction measures, operating income came to¥67 million (up 89.5% year on year).

78.7%
Imaging &Information
Equipment
Business

Information
ServiceBusiness

Real-Estate
Leasing
Business and
Other
Businesses

3¥6,840million

Net Sales¥934million

10.5%
Net Sales¥915million

In the Real-Estate Leasing Business, due to a decrease inlease properties accompanying the switchover to internalGroup use for the Head Office Building, net sales andoperating income stood at ¥149 million (down 62.5% year
on year) and ¥105 million (down 53.8% year on year),respectively.
In Other Business, due to an environment of sluggish
consumer spending and capital expenditures brought
about by prolonged deflation, the business environment
remains difficult for sports support products and design/drafting equipment products. As a result, net sales and an
operating loss of ¥765 million (down 7.9% year on year)and ¥15 million (compared with an operating loss of ¥6
million in the same period last year) were respectively
recorded.

The successor model to the CAD inkjet plotter“RJ-900 Series,” the “RJ-900X Series” launched“Faster, more beautiful, and easier to use”
Sales of new CAD inkjet plotter models “RJ-901X” (supporting A1 size) and “RJ-900X”(supporting A0 size) have been launched. The major characteristics are as follows.
Compared to the Group's previous models, 25% higher speeds can be achieved in
the draft mode.
(A1 color printing: top speed of 33 seconds)
Incorporating the technologies fostered through our large-format inkjet printers
for signage, the products achieve image quality improvements for images including
many graphic elements such as photos and illustrations.
Improved thin-paper conveyance capacity, for paper such as traditional Japanese
paper (pressure application adjustment for holding paper)
In addition to PCs, supports VSM status monitors in collaboration with smartphones(Various information relating to the plotter unit can be easily confirmed with asmartphone)

New CAD inkjet plotter “RJ-900X”

Integrated production management system “ProductionMasterTM”
An easy-to-use, -introduce, and -operate production
management system“ProductionMaster ” is an integrated production management packagethat covers all factory manufacturing tasks from order receipt toshipping. Step-by-step introduction based on the current factory status(precision of standard values) is possible.

ProductionMasterTM

TM

Prioritizes ease of use, introduction, and operation
Provides sufficient functionality as required for production
management
Food-processing production management also supported througha food industry templateWith the KPI (key performance indicator) function, it is possible toconfirm business information in real-time, including the facility
load factor, inventory turnover rate, inventory value, on-time
customer delivery rate, and monthly shipment value
Provides a highly usable system based on on-site capabilities

Order placement andshipping management

Production planning

Finished product andinventory management

MRP

Purchasing
management
Standard information
management

Manufacturing
management

Raw materials
inventory management

Cost management（Optional）

Possible to measure up to 10 meters!
Long-stroke linear encoder “DL-10” launched
Supports a variety of measuring needs
The moving distance for machines and equipment can be measured by the amount ofwire drawn out.
The product is optimal for long-distance measuring needs, such as stroke detection forhydraulic jacks and industrial machinery for civil engineering and construction; stroke
detection for theater curtains and television studio speakers, microphones, and batons;
height measurement for buildings under construction; and elevator and cranemoving-distance detection. Movement digital display and positioning control can easily
be conducted by connecting the product with a digital counter or positioning counter.

Long-stroke linear encoder “DL-10”

High-precision stroke detection is maintained even in harsh operating
environments
In addition to the ability to flexibly set the mounting position, the product has drip- anddust-proof specifications that can withstand harsh operating environments.

4Topics
Launched the cutting plotter “ValueCut Series,” providing
both a print and cut system
As a new cutting plotter for the signage market, we have started
to market the “ValueCut Series.”
The “ValueCut Series” are new global strategic models for cutting
plotters in the signage industry. The lineup includes three models:
the “VC-600” for 610 mm cut widths, the “VC-1300” for 1,320 mm
cut widths, and the “VC-1800” for 1,830 mm cut widths. The seriesconsists of high-cost performance products that deliver highperformance at a reasonable cost.
New cutting plotter “VC-1300”

The major characteristics are as follows, supporting the various
needs of professional users.
Achieves a maximum cutting pressure of 600 g, allowing the cuttingof rubber sheets for sand-blasting and reflective film
Achieves a best-in-class operating speed of 1,530 mm per second
Includes a segment-cutting function that allows long printed materials
to be split into multiple segments and to be cut with high precision
In addition to use as a cutting plotter in isolation, the “ValueCutSeries” can also be used in combination with the large-format
inkjet printer “ValueJet Series,” as a low-priced, high-performance
print and cut system.

5

The cutting plotter head

Launch of the “3D TouchTM,” a 3D printer for educational institutions
An introductory model provided at a low priceWe have launched sales of the “3D TouchTM,” an introductory 3D
printer (unit price from ¥350,000, by 3D Systems).
With the “3D TouchTM” you can directly load data from a USB
drive, without connecting it to a PC, and create simple 3D
models. The “3D TouchTM” is a low-priced product for a hands-on
experience of 3D modeling aimed at technical high schools andvocational training schools that need to conduct 3D verification
but do not need precisely formed models up to professional
specifications, as well as university labs. As modeling creationmaterials, PLA (polylactic acid) and ABS resin (acrylic resin)
generated from plant-derived ingredients are available,
allowing selection from two types and all 16 colors.
The major characteristics are as follows, providing an out-of-thebox 3D printer.
Equipped with a touch-screen display and control panelStand-alone system that supports power saving and USB dataloading
Large printing area (maximum 275 x 275 x 210 mm)
Extension possible from single/dual head to triple
No maintenance contract required due to simple operationand maintenanceIntroductory 3D printer “3D TouchTM”

As a result, MUTOH is now able to provide a full lineup
of products based on the needs of various customers.
The lineup includes the “3D TouchTM,” an introductory 3D
printer model, the “ZPrinter® Series,” a high-end plasterbased series, and the “ProJet TM Series,” which are UV
acrylic-based for high-precision modeling.

Example of “3D TouchTM” 3D printer modeling

Example of “3D TouchTM” 3D printer materials(two types and all 16 colors)6

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

Period As of September 30, As of September 30,
Account

2012

2011

As of March 31,
2012

AssetsCurrent assets(Millions of yen)

Period As of September 30, As of September 30,
Account

2011

As of March 31,
2012

Liabilities
14,301

16,53015,863Current liabilities

3,724

5,979

4,871

2,193

3,252

2,960

1,530

2,726

1,910

3,702

3,456

3,555

Others

3,702

3,456

3,555

Total liabilities

7,427

9,436

8,426

Shareholders’ equity

19,903

20,494

20,359

Capital stock

10,19910,19910,199

Capital surplus

4,181

4,181

4,181

Retained earnings

7,843

8,426

8,298

Treasury stock(2,320)(2,313)(2,319)Total other cumulative
comprehensive income(2,802)(2,667)(2,408)

Minority interests

655

635

650

Total net assets

17,755

18,462

18,601

Total liabilities and net assets

25,182

27,89827,028Notes and accounts
payableCash and bank deposits

6,117

7,250

6,144

Notes and accounts
receivable

3,220

4,255

4,347

Short-term bank loans
and current portionof long-term debt
OthersLong-term liabilities

Inventories

2012

4,219

4,276

4,575
Long-term debt

OthersFixed assets

Tangible fixed assets

Intangible fixed assets

Investments andother assets

Investment securities

7

743

747

796

10,881

11,367

11,165

8,444

8,544

8,626

152

2,284

1,713

526

2,296

1,514

160

Net assets

2,378

1,815

Others

570

782

562

Total assets

25,182

27,89827,028

■ Consolidated statements of income(Millions of yen)

Period 1st Half period ended

September 30, 2012

Account

Net sales

1st Half period ended Year ended March 31,
September 30, 20112012

Trends of net sales (Millions of yen)
Full fiscal year

8,690

10,57920,441The 62nd
period11,417

34

463

653

The 63rd
period10,579

(187)

680

1,306

Operating income
Ordinary income (loss)
Income (loss) before income taxes
and minority interests

(137)

(222)

7

Net income (loss)

(317)

(297)

(425)

1st half year

21,92020,441The 64th
period8,690
010,00020,00030,000Trends of operating income (Millions of yen)
Full fiscal year

■ Consolidated statements of cash flows(Millions of yen)

Period 1st Half period ended

September 30, 2012

Account

1st Half period ended Year ended March 31,
September 30, 20112012

Net cash from operating activities

458

604

(484)

Net cash from investing activities

(1)

(22)

(276)

Net cash from financing activities

(167)

(476)

(521)

Net increase (decrease) in cash and cash
equivalents

(26)

(342)

(1,448)Cash and cash equivalents at beginningof period

6,144

7,592

7,592

Cash and cash equivalents at end of period

6,117

7,250

6,144

1st half year775

The 62nd
period1,202
463

The 63rd
period653

The 64th
period

34
0

500

1,000

1,500

Trends of ordinary income(loss) (Millions of yen)
Full fiscal year

1st half year553

The 62nd
period962
680

The 63rd
period

1,306

The 64th (187)period■ Consolidated subsidiaries in each business segment
Business segment

Imaging & Information
Equipment Business

-500

0

500

1,000

1,500

Company 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.

Information Service
Business

MUTOH ITEX Co. Ltd.,MUTOH ENGINEERING INC.

Real-Estate Leasing
Business

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

Other Business

MUTOH ENGINEERING INC.,
MUTOH ENTERPRISES LTD.

Trends of net income(loss) (Millions of yen)
Full fiscal year545

The 62nd
period800

The 63rd
period

(297)
(425)

The 64th
period

(317)

-500

1st half year

0

500

1,000

8

Company Profile (As of September 30, 2012)
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

Main business:

10,199 millions yen

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 INDUSTRIES LTD.
• MUTOH ENGINEERING INC.
• MUTOH ENTERPRISES LTD.
• MUTOH ITEX Co., Ltd.
• MUTOH HONG KONG LIMITED• MUTOH SINGAPORE PTE.LTD.
• MUTOH AUSTRALIA PTY.LTD.

• MUTOH AMERICA INC.

Directors (As of September 30, 2012)

9

Masanori Takayama

Chairman of the Board

Hajime Tatsuzawa

Full-time Auditor

Nobumasa Hayakawa

President

Hiroki Nakano

AuditorYuji Yata

Director

Nobuaki Kunimine

AuditorHisayoshi Aoki

Director

Masanobu Takeda

Director

Yoshiyuki Takayama

Director

Stock information (As of September 30, 2012)■ Number of shares issuable

170,000,000■ Number of shares issued

54,818,180■ Number of shares per unit

1,000

■ Number of shareholders

5,426■ Major Shareholders
Number of
Ratio of
Shares Held Shareholding(Shares)(%)

Name
TCS Holdings Co., Ltd.

13,220,000

28.78

Mizuho Bank, Ltd.

2,121,399

4.62

Eiji Mutoh

1,580,586

3.44

Sumitomo Mitsui Trust Bank, Limited

1,457,000

3.17

Unisystem Co., Ltd.

923,000

2.01

NTT System Development Co.,Ltd.

712,000

1.55

Ikuko Mutoh

638,603

1.39

Keiichi Hori

591,000

1.29

High-Tech System Corporation

551,000

1.20

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

504,000

1.10(Note) 1. T he Company holds 8,876,391 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
4.15%
53

◆ Breakdown by the number of shares held
Foreign companies
1.73%
44

5 or more
4.50%
404

1 or more
9.10%
3,040

Less than 1
0.69%
1,561

10 or more
11.50%
343

50 or more
3.35%
28

Financial
institutions
12.15%
27
Other companies
52.36%
249

Individuals and others
29.61%
5,053

100 or more
15.29%
40

500 or more
5.85%
51,000 or more
49.72%
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

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.