59th (Fiscal Year 2007) Financial Report
April 1, 2007 to March 31, 2008

MUTOH HOLDINGS CO., LTD.
(Former name: MUTOH INDUSTRIES LTD.)TSE securities code: 7999

Aiming to bolster the creativity ofpeople and enterprises
It is human creativity that evolves lifestyles, industries and the society.
MUTOH’s mission is to offer products and services that increase the creativityof people and enterprises.
As a company that has been working with professionals in manufacturing,
MUTOH will contribute to the creation of new value from its unique perspective.

Making inspiration into excitement
MUTOH helps designers express their ideas in high resolution and in a vivid form.
MUTOH expands excitement.

Making an idea
into a surprise
MUTOH uses information technology to support planning and design.
MUTOH transforms designers’ inspiration into a surprise.

Making an image into acommon language
MUTOH communicates the concepts of designers in a common language: drawings.
MUTOH leads with a passion for manufacturing.

Basic Policy
Supporting today's business challenges withconstant innovations, sustained initiativeand social contributions.
We are pleased to bring you the financial reportfor the 59th fiscal year.
The Group shifted to a holding company from theconsolidated fiscal year to establish a stable profit
structure. Aiming to strengthen the new system,and to streamline the Group’s operations, wehave adopted aggressive management strategies
for graphics, including:- Transferring the Company’s head office function
to Shinagawa-ku, Tokyo to bolster the efficientuse of real estate- I ntegration and sales of three affiliated

Consolidated Financial Highlights
Highlights of the Consolidated Accounts

Sales

Net sales
59th (FY2007) period:

Imaging & Information Business¥ 30,416 million

Information Service Business56th (FY2004) period:

57th (FY2005) period:

58th (FY2006) period:

28,974million

28,612million

28,752million- E s t a b l i s h m e n t a n d r e v i e w o f o v e r s e a s
subsidiaries to improve the sales structure- Establishment of a customer service center toReal-Estate Leasing Businessand Other Business

L 59th (FY2007) period:

Ordinary income
59th (FY2007) period:¥30,416 million¥ 3,210 million

3,786

56th (FY2004) period: 57th (FY2005) period: 58th (FY2006) period:

1,416million

1,481million

Net income
59th (FY2007) period:

3,698

2,068million
22,931¥ 1,802 million

56th (FY2004) period: 57th (FY2005) period: 58th (FY2006) period:

690million(982million)

1,073million

companies to strengthen the concentration of
the business

Segment Information

L 58th (FY2006) period:

Total Assets
59th (FY2007) period:¥28,752 million¥ 30,964 million

56th (FY2004) period: 57th (FY2005) period: 58th (FY2006) period:

29,464million

27,683million

3,403

29,723million

3,145

enhance the service structure

Net assets
As a result of these initiatives, consolidated net

59th (FY2007) period:¥ 20,084 million

22,204

sales reached ¥30,416 million, an increase of

56th (FY2004) period:

57th (FY2005) period:

58th (FY2006) period:

5.8% from the previous fiscal year, reflecting the18,262million

17,529million

18,744million

introduction of new products.
L 57th (FY2005) period:

In terms of income and expenses, given asignificant improvement in profitability, reflecting¥28,612 million

increased production stemming from factors
attributable to an increase in revenue,

3,183

2,915

consolidated operating income was ¥3,022
million, up 54.0% year on year, and consolidated
ordinary income was ¥3,210 million, rising 55.2%

22,513

year on year. Consolidated net income was¥1,802, rising 67.8% year on year.

CONTENTS

Consolidated Financial Highlights ........ 1
Overview of Business Segments
Imaging & Information Business ........... 2

Information Service Business /Real-Estate Leasing Business andOther Business......................................... 3
Topics ...................................................... 4
New Product Informationof the Group . ......................................... 5
Financial Statements
Consolidated Financial Statements ....... 6
Stock Information / The Group
Information ............................................ 8
Company Profile / Directors . ................. 9

Forecast of results for the next fiscal year
Millions of yen

Forecast of consolidated
business results

Net sales

OperatingincomeOrdinary
incomeNet income

34,000

3,500

3,500

2,000

The economic environment has become increasingly difficult, with a slowing global
economy and the impact of persistently high oil prices on raw material prices. The Asianeconomy, however, is expected to continue to grow, primarily driven by China.
In this environment, we will continue to adopt aggressive management strategies with theaim of streamlining and expanding the entire Group’s operations.

1Overview of Business Segments

Imaging & Information Business
Overview

Breakdown of net sales by region

75.4%

North America
Other regions
AsiaEurope¥22,931 million

Japan

In the Imaging and Information Business, we stepped up
sales of "ValueJet," a large-format inkjet printer forgraphics. Sales of these printers remained strong overseas,
especially in Europe and Asia. As a result, sales reached¥22,931 million (up 3.3% year on year). Operating income
improved to ¥2,612 million (up 59.3%), reflecting the same
factors attributable to higher sales namely the launch of
new cost-effective products, and an improvement in the costrate, as a result of increased production.

TOKYO

MUNCHENGENEVE

SIGN&DISPLAY SHOW 2007

ITMA 2007

FESPA 2008

DUSSELDORF

2FLORIDAVISCOM 2007

MUTOH’slarge-format inkjet printerswere presented
in exhibitions worldwide.
They have been very well received.

ISA 2008

SEOUL

SHANGHAITOKYODPG SHOW 2008

The 15th Shanghai Int’l Advertising &Sign Technology & Equipment Exhibition

JAPAN SHOP 2008

Information Service BusinessOverview

12.4%¥3,786 million

The performance of the System Integration and Solution Service Business was robust as aresult of aggressive operations, including the development of new customers.
In the CAD software operation, we aggressively strove to bolster profitability by
primarily focusing on "M-Draf Suite," the new 3D software, which was launched under
the MUTOH’s brand. As a result, net sales were up 11.3% from the previous fiscal year, to¥3,786 million, and operating income also up 10.3% from the previous fiscal year, to ¥29million.

Seamless conversion of 3D models to 2D models
The functions of projection drawing creation and cross-section drawing creation are installed, the firsttime in the industry. They can seamlessly convert trihedral drawing, projection drawing and cross-section
drawing created during structural design from three dimensional models to two dimensional models.
“M-Draf Suite 2008,” the new version, waslaunched at the 19th DESIGN ENGINEERING &MANUFACTURING SOLUTIONS EXPO.

NEW!

Real-Estate Leasing Business and Other BusinessNet sales ratio by operation

12.2%

Real-estateleasing

Other
Design drafting
equipment

Sports-care Optical measuring
productsinstruments¥3,698 million

Overview
In line with the transition to a holding company system,
we have included the Real-Estate Leasing Business, whichprimarily provides operational management of Group realestate, among our business segments.
Sales and operating income in the new segment were¥729 million and ¥320 million, respectively.
Other business consists of stable operations such as
design-drafting equipment, optical measuring
instruments, sports-care products and retail outlets selling
products such as books and stationery.
Net sales in this segment declined 5.6% over the previous
fiscal year, to ¥2,968 million, while operating income
declined 47.2% over the previous fiscal year, to ¥143
million.

3

Topics

武藤 彩り工房

検索

http://www.irodori-koubou.net/
The Irodori-kobo Workshop
provides useful information about
large-format inkjet printers.

Environmental-friendly displays using
cardboard

In the Irodori-kobo Workshop, we report on thelatest product trends, such as external
advertising displays and illuminated signs, andexamples of user applications in new fields,
including textile printing and interiors.

Completed by printing a development view on
PET materials and vacuum forming

Direct printing of interior decorating materials,
such as tiles, marbles and mirrors, on PET materials

4Topics

Selected as the best product in 2008
"VJ-1614," the ValueJet series, was chosen as
the best product in the Low/Mild/Eco-Solvent
Printer Division by readers of Wide-Format
Imaging, the industry magazine for large
printers in the United States.

http://www.wide-formatimaging.com/
New Product Information of the GroupSports taping effectively supports muscles and joints.
Excellent flexibility provides skin-friendly comfort.

Effects of sports taping* Preventing injuries: Sports taping around bodyparts that are susceptible to frequent injuries,s u ch a s t h e j o i n t s o f f i n g e r s , w r i s t s , a n d l e g s ,supports movements and helps prevent injuries.
* P r e v e n t i n g t h e r e o c cu r r e n c e o f i n j u r i e s : T h e s a m e
i n j u r i e s a r e l i k e l y t o r e p e a t e d l y o c cu r i n t h e s a m eparts of the body.
Sports taping supports and protects these bodyparts.

5

Financial Statements

Consolidated Financial Statements■ Consolidated Balance Sheets(Millions of yen)

(Millions of yen)

As of March 31, As of March 31,
2008
2007

As of March 31, As of March 31,
2008
2007
Liabilities

AssetsCurrent liabilities
Current assets

Cash and bank deposits

19,586

17,939

6,167

5,819

7,359

6,712

4,361

4,034

—

82

2,997

2,595

Long-term liabilities

3,520

4,266

Long-term debt—

1,125Others

3,520

3,141

Total liabilities

10,88010,978

Shareholders’ equity

19,982

18,733

Common stock

10,19910,199

Capital surplus

4,182

4,182

Retained earnings

7,239

5,437

Treasury stock(1,638)(1,084)

Valuation and translation adjustments

(444)

(310)

Minority interests

546

320

Total net assets

20,084

18,744

Total liabilities and net assets

30,96429,723

Notes and accounts payable
Current portion of long-term debt
Others

Notes and accounts receivable

6,063

6,574

Inventories

6,274

4,612

Others1,081

932

Fixed assets

11,377

11,783

Tangible fixed assets

9,632

9,866

Intangible fixed assets

136

180

Investments and other assets

Investment securities

1,609

1,736

821

1,015

Others788

721

Total assets

30,96429,723

Net assets■ Consolidated Statement of Changes in Net Assets (From April 1, 2007 to March 31, 2008)(Millions of yen)

Valuation andShareholders' equity
translation
Common stock Capital surplus Retained earnings Treasury stock Total shareholders' equity adjustments
Balance as of March 31, 2007

10,199

4,182

5,437

(1,084)

18,733(310)

Minority
interests

Total netassets

320

18,744

Changes during the period
Net income

1,802

Acquisition of treasury stock
Disposal of treasury stock0

Net decrease resulting from exclusion ofaffiliates from equity method

1,802

1,802(558)

(558)

(558)

0

1

1

3

33

Net changes of items other thanshareholders’ equity during the period
Total changes during the period
Balance as of March 31, 2008

6(134)

225

91

—

0

1,802(553)

1,248(134)

225

1,340

10,1994,182

7,239(1,638)

19,982(444)546

20,084

Consolidated Financial Statements■ Consolidated statements of income(Millions of yen)

Year ended
March 31, 2008

Year ended
March 31, 2007

Ordinary income or loss
Net sales

30,41628,752

Operating income

3,022

1,962

Ordinary income

3,210

2,068

Income before income taxes and minority interests

3,180

1,901

Net income

1,802

1,073

Trends of net sales (Millions of yen)
The 57th
period28,612The 58th
period28,752The 59th
period30,4160

10,00020,00030,000Extraordinary income or loss

Trends of operating income (Millions of yen)
The 57th
period1,157

The 58th
period■ Consolidated statements of cash flows(Millions of yen)Year ended
March 31, 2008

The 59thperiod

2,531

1,912

Net cash from investing activities(459)(2,743)

Net cash from financing activities(1,764)(796)

Effect of exchange rate changes on cash and cash equivalents

(164)

200

Net increase (decrease) in cash and cash equivalents

143(1,426)

Cash and cash equivalents at beginning of period

5,819

7,192

Increase in cash and cash equivalents due tomerger of consolidated subsidiaries

204

53

Cash and cash equivalents at end of period

6,167

5,819

3,022
0Year ended
March 31, 2007

Net cash from operating activities

1,962

1,000

2,000

3,000

Trends of ordinary income (Millions of yen)
The 57th
period1,481

The 58th
period2,068

The 59th
period

3,210
0

1,000

2,000

3,000

Trends of net income (loss) (Millions of yen)
The 57th -982
period■ Consolidated subsidiaries in each business segment
Business segment

Imaging & Information
Business
Information ServiceBusinessCompany names

MUTOH INDUSTRIES CO., LTD., MUTOH ENGINEERING INC.,

The 58th
period1,073

The 59th
period-1,0001,802
01,0002,000

MUTOH EUROPE N.V., MUTOH DEUTSCHLAND GmbH.,
MUTOH AMERICA INC.
MUTOH INDUSTRIES CO., LTD., MUTOH ITEX CO., LTD.,

Real-Estate Leasing
Business

MUTOH HOLDINGS CO., LTD.

Other Business

MUTOH ENGINEERING INC., MUTOH ENTERPRISES LTD.

MUTOH ENTERPRISES LTD.

7

Stock information (As of March 31, 2008)■ Number of shares issuable

170,000,000■ Number of shares issued

54,818,180■ Number of shares per unit

1,000

■ Number of shareholders

4,353■ S hareholders who holds greater than 10% of thetotal number of shares issued
Shareholders

Units held

Percentage of voting rights

TCS HOLDINGS CO., LTD.

13,20026.9

Note: Above Percentage of voting rights is calculated exclusively the treasury stock(5,774,377 shares).

■ Breakdown by the number of shares held

■ Breakdown of shareholders
Securities companies
1.08%
39

Foreign companies
6.95%
54

1 or more
6.21%
2,091

10 or more
6.62%
192

1 or less
0.85%
1,789

50 or more
3.76%
29

Financialinstitutions
23.32%
38

Other companies
40.55%
249

5 or more
2.32%
211

Individuals and others
28.10%
3,973

100 or more
10.87%
26

500 or more
6.32%
51,000 or more
63.05%
10

The Group Information
In line with the transition to a holding company system, we have carried out the following initiatives with the aimof streamlining and expanding the Group structures.
(i) 	We sold shares of Cosmo Co., Ltd. and Digital Matrix, Inc., the Company’s affiliates, as their synergy with Group
companies has become less significant.
(ii) 	We amalgamated MUTOH ITEX Co., Ltd., the Company’s subsidiary, and Mutoh Mechatronics Co., Ltd., the Company’saffiliate, to bolster the Information Service Business.
(iii) 	The operations of MUTOH DEUTSCHLAND GmbH have been relocated to Düsseldorf to strengthen the service and salesstructures.
(iv) 	The sales office of MUTOH AMERICA INC. has established a new office in Chicago, Illinois as part of the strengtheningof the sales structures for expansion.

8

Company Profile (As of March 31, 2008)
Name:

MUTOH HOLDINGS CO., LTD.

Established:

March 5, 1952 (founded: December 1942)

Common stock:

10,199 million yen

Head office:No.5 TOC Building, 21-1, Nishi-Gotanda,
7-chome, Shinagawa-ku, Tokyo 141-8683
Tel: 03-5740-8700

Website address:

http://www.mutoh-hd.co.jp/

Main business:

Management and assets management ofthe Group companies

MUTOH group companies
MUTOH INDUSTRIES CO., LTD.
Development, manufacturing, and sales of imaging- andinformation-related equipment and information services(CAD/CAM)
MUTOH ENGINEERING INC.
Repair and maintenance of imaging- and informationrelated equipment, etc.
MUTOH ENTERPRISES LTD.
Sports-care product sales / management of retail outlets
for books, Stationery, etc.
MUTOH ITEX Co., Ltd.
System integration services / application softwaredevelopment
MUTOH AMERICA INC.
Sales of imaging- and information-related equipment
MUTOH EUROPE N.V.
Development, manufacturing and sales of imaging- andinformation-related equipment
MUTOH DEUTSCHLAND GmbH
Sales of imaging- and information-related equipment

Directors (As of June 27, 2008)
Masanori Takayama

Chairman of the Board

Akihide Kobayashi

Full-time Auditor

Toshiaki Sato

President

Hiroki Nakano

AuditorNobumasa Hayakawa

Director

Nobuaki Kunimine

Auditor

Arthur Vanhoutte

Director

Zentaro Maekawa

Director

Yoshiyuki Takayama

Director

9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

Interim Dividend Record Date:

September 30

Public Notices:

Public notices shall be made on the Company’s website (http://www.mutoh-hd.
co.jp).
*In case the public notices is not available on the Company’s website due tounavoidable reasons, such notices shall be made on the Nihon Keizai Shinbun

Administrator of Shareholders Register:

The Chuo Mitsui Trust and Banking Company, Ltd.
33-1, Shiba 3-chome, Minato-ku, Tokyo 105-8574, Japan

Business Location:

The Chuo Mitsui Trust and Banking Company, Limited, Head Office33-1, Shiba 3-chome, Minato-ku, Tokyo 105-8574, Japan

Mail address and telephone number
Stock Transfer Agency Department:

The Chuo Mitsui Trust and Banking Company, Ltd.
8-4 Izumi 2-chome Suginami-ku, Tokyo 168-0063
Tel. 0120-78-2031 (toll-free)Agency’s Intermediary Office:Nationwide branches of the Chuo Mitsui and Trust Banking Company, Ltd.
Head Office and branches of Japan Securities Agents, Ltd.

Transferring Fee:Fee of charge

Note:
For inquiries concerning any requisite forms for changing address, names, request for purchase and sell of odd lot shares, etc., shareholders are requested tocontact the at the following toll free number or website address:
Toll-Free Telephone No. 0120-78-2031 (24-hour automated voice-recognition operator system)
The website address http://www.chuomitsui.co.jp/person/p_06.html

This report is printed on recycled paper with soy ink.