61th (Fiscal Year 2009)
Financial Report
April 1, 2009 to March 31, 2010

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

Message
We would like to express our sincerest
gratitude to all of our shareholders who havecontinued to support us.
We hereby present you with our 61st (Fiscal
Year 2009) Financial Report.

President

Nobumasa Hayakawa

Basic Policy
With constant innovationand challenging
ourselves,

we contribute to society<Message from the President>
Allow me to take this opportunity to say a
few words.
I assumed office as President of MUTOH HOLDINGS CO. LTD. on February 1 ofthis year.
With full awareness of the high expectations of all of our stakeholders, I am
pursuing an aggressive management policy, seeking to consolidate andexpand our business foundation and establish a strong MUTOH brand.
I hope that I may rely on your continued understanding and support.

B u s i n e ss Situation a nd Ou t c o m es
Looking at the economic environment over the course of the most recent consolidated accounting year, despite signs ofrecovery as the economic slowdown resulting from financial turmoil eased in response to active stimulus measures aroundthe globe, the pace of recovery has been slow in the U.S. and the European nations. Even as the environment remained
uncertain, the emerging nations of Asia, in particular China, maintained solid growth, registering a strong presence asengines of growth in the world economy.
Against this background, the MUTOH Group continued to focus on cost reductions, cutting inventory, and similar efforts
to increase profitability. However, despite the fact that exports of imaging and information equipment to the emerging
Asian nations became firm in the second half of the fiscal year, results in our information service business and otherbusiness sectors, with the exception of our real estate leasing business, were adversely affected by the domestic andinternational economic slowdown, bringing with it reduced capital spending, a worsening employment environment, anda freeze on personal spending.
Looking at the consolidated business performance emerging from these circumstances, net sales stood at ¥21,997 million(down 16.5% year-on-year), operating income was ¥354 million (down 62.7% year-on-year), ordinary income was ¥325
million (down 76.6% year-on-year), and net income was ¥217 million (down 63.9% year-on-year).
This fiscal year saw MUTOH continue to enhance its overseas strategy in its imaging and information equipment business,
focusing on the emerging Asian nations. In the second half of the year, we established new sales offices (subsidiaries) in
Hong Kong, Singapore, and Australia, to strengthen our management and support system in the region, seeking both toachieve a continuing expansion of the MUTOH brand and to increase our level of customer satisfaction. We believe thatthese new offices will grow as significant assets from the next fiscal year onwards.
Finally, with regard to the payment of dividends for the period, taking the present unstable economic conditions andbusiness environment into consideration, and recognizing the solidification of our business foundation and thestrengthening of our financial standing as our most urgent tasks, we intend to resume the allocation of dividends once weare firmly back in the black.
The MUTOH Group as a whole is pursuing business strategies that will enable us to resume dividend payments and to
make them consistently at the earliest possible juncture.
Until then, we ask the understanding of our shareholders in this respect.

1

Consolidated Financial Highlights
Consolidated net sales
61th (FY2009) period:

58th (FY2006) period:

59th (FY2007) period:

28,752million

30,416million

Consolidated operating income
61th (FY2009) period:

58th (FY2006) period:

59th (FY2007) period:

1,962million

3,022million

Consolidated ordinary income
61th (FY2009) period:

58th (FY2006) period:

59th (FY2007) period:

2,068million

3,210million

Consolidated net income
59th (FY2007) period:

1,073million

1,802million

Consolidated gross assets
61th (FY2009) period:

58th (FY2006) period:

60th (FY2008) period:

Imaging & Information Business

26,338million

Information Service Business
Real-Estate Leasing Businessand Other Business¥354 million

L 61st period:

60th (FY2008) period:¥21,997 million

951million
2,048

30,964million

3,236¥325 million
60th (FY2008) period:

16,713

1,394million

L 60st period:

60th (FY2008) period:

604million¥26,338 million
3,268¥28,789 million

59th (FY2007) period:

29,723million

Net Sales (Millions of yen)¥217 million

61th (FY2009) period:

58th (FY2006) period:

Business Segment¥21,997 million

3,553

60th (FY2008) period:

28,301million
19,516

Consolidated net assets
61th (FY2009) period:¥19,018 million

58th (FY2006) period:

59th (FY2007) period:

18,74420,084

millionmillion60th (FY2008) period:

L 59st period:

18,880million¥30,416 million
3,786

3,698

22,931

Projections for the next period(Millions of yen)

Consolidated
projections

Net sales

OperatingincomeOrdinary
incomeNet income

25,000

550

550

270

While the global economy is displaying a gradual recovery, driven by the favorable economic environments of theemerging Asian nations, the economic environment remains unclear in Japan, the U.S., and Europe. Against thisbackground, the MUTOH Group is actively increasing the pace of overseas expansion and the marketing of new
products, seeking to further expand the MUTOH brand and to increase profitability.

2Overview of Business Segments
Results in MUTOH’s imaging andBreakdown of net sales by region

information equipment business, inNorth America

particular for large-format inkjet

Other regions

Asia

76.0%
Imaging &Information
Business

Europeprinters, exceeded those for theJapanprevious year in the Asian region,
against the background of a strong
economic environment. In other¥16,713million

regions, however, results wereaffected by the global recession that continued from the previous
consolidated accounting year, and the costs associated withestablishing new overseas offices and development costs increased
beyond initial projections. As a result, we posted net sales of ¥16,713
million yen (down 14.4% year-on-year) and an operating income of¥155 million yen (down 68.6% year-on-year).

Against the background
FilingData Managementof a prolonged slump
in the Japanese economy,

9.3%
Information
ServiceBusinessthe decline in sales of
CAD s y s t e m s a n d i n
new projects has been

2D CAD

3D CAD

Scanner·
PlotterEnterprise
System Integration
Integration with
External Process

Work Group Process

marked as a result of¥2,048million

restriction of investment
in information systems. Combined with the effect of a reduction inunit prices as a result of cost reduction efforts, this sector recorded
net sales of ¥2,048 million yen (down 37.3% year-on-year) and an
operating loss of ¥87 million (compared to ¥47 million in profit in theprevious year).

MUTOH’s real estate leasing
business shifted to a firmer footing,recording sales of ¥841 million (upOther
6.1% year-on-year) and operating
Real-estate
Design draftingleasingequipment
income of ¥494 million yen (upSports-care Optical measuring
16.3% year-on-year). In otherproducts
instruments
business sectors, we continued tomake efforts to increase sales
looking towards business expansion,for example by conducting continuous investments in LED-based
products and other environment-related products, but contended witha significant effect from consumer concerns over personal spending due
to the slump in the domestic economy. As a result, we recorded sales of¥2,395 million (down 13.2% year-on-year) and an operating income of¥3 million (down 96.3% year-on-year).

Net sales ratio by operation

Real-Estate
Leasing
Business and
Other
Businesses

3

14.7%
¥3,236million

Sublimation Transfer Printer VJ-2628TD
How does a sublimation transfer
printer work?
An inkjet printer using sublimating ink
prints images created on a PC on transfer
paper. The images are heated andUniforms

pressurized using a heat press. The ink is
sublimated (gasified), and penetrates
into the fabric fibers.
This enables the user to achieve brilliant
images, while retaining the feel of theTies
T-shirts

fabric.

2. Learn design procedures using CAD

Educational solutions

MUTOH provides a fullrange of curricula
1. Learn the basics of design by hand

In the future, CAD will be employed
in a diverse range of workplaces inwhich the student may be employed
as an engineer designing products.

3. Experience and learn digital prototyping

MUTOH has supplied parallel
motion rulers and drafters toclassrooms for many years.

Enabling students to learn advanced
processes, teaching them how 3D
CAD can realize increased efficiency
in design procedures.

Power insoles from Finoa

Step beyond your limits!
The Finoa lineup, highly regarded in the field of sports
taping, combining sports and personal care, has
expanded

into

a

new

category:Powerinsoles.

Maximizing our combined power, we will lead the worldof sports.

4Topics
Suwa Region abuzz
with the huge
Onbashira Festival,
held once every
seven years
MUTOH printers play a part!
The Suwa Taisha Shrine close to MUTOH’s Suwa Factory is currently
restoring the Akimiya Shrine, and work will continue until
September 2010.
While the restoration work proceeds, the Akimiya Shrine will becovered with uninteresting plain construction sheets. Concernedthat this would disappoint sightseers who had gone out of their
way to visit the shrine, the Suwa Taisha Shrine requested help inprinting photographs of the Akimiya Shrine on the construction
sheets. The Suwa Factory Development Center immediately
Printing at the Suwa Factory Development
Centerresponded to this call, providing exactly what was needed.
The resulting image portrayed on the sheets has created a lot of
excitement, and has been featured on local cable television and in
local print media.

The image is 10
meters in heightand 20 metersin length, and isdivided between
nine construction
sheets.
The actual Akimiya Shrine of the Suwa Taisha Shrine

5

The image of the Akimiya Shrine as printed on theconstruction sheets

— The First Year of 3D —Announcing the 3D printerThis year has been called the first year of 3D. From the film Avatar
to 3D television and 3D picture books, the mass media haveintroduced us to a variety of new 3D possibilities. The 3D printersmanufactured by Z Corporation introduced by MUTOH havealso been extensively covered by the media and have attracted
considerable attention.

ZPrinter 650

What is a 3D printer?
A 3D printer is a device that prints data, forexample from three-dimensional CAD, in

Modeling process of
powder-fixing method

three dimensions.
Powder fixing types using powders such as
gypsumInkjet UV hardening types using acrylic
hardening resins
andHeat laminating types using ABS resins
are available. The Z Printers are powder
fixing types. The inkjet heads produce laminated images by coating thinly spread powder with liquid adhesives.

Applications
The range of applications of image models produced using 3D CAD continues to expand, encompassing
checking of external form and color, etc., checking of assembly with mass-produced parts, movable sections,etc., and verification of the external appearance and layout of buildings, etc.

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

Period FY2009 period

FY2008 period

As of March 31, 2010

As of March 31, 2009

Account

AssetsCurrent assets

Cash and bank deposits

Notes and accounts receivable

Inventories

OthersFixed assets

Tangible fixed assets

Intangible fixed assets

Investments and other assets

Investment securities(Millions of yen)

Period FY2009 period

FY2008 period

As of March 31, 2010

As of March 31, 2009

Account

Liabilities
17,508

16,583

7,449

4,960

4,568

6,095

674

785

9,134

741

5,656

5,472

Notes and accounts payable

3,375

2,897

Short-term bank loans andcurrent portion of long-term debt

115

249

2,164

2,324

Long-term liabilities

4,114

3,949

Long-term debt

309

340

Others

3,805

3,608

Total liabilities

9,770

9,421

Shareholders’ equity

20,137

19,921

Common stock

10,19910,199

Capital surplus

4,182

4,182

Retained earnings

8,061

7,843

Treasury stock(2,305)(2,303)(1,713)(1,600)Minority interests

594

558

Total net assets

19,01818,880Total liabilities and net assets

28,78928,301Others

4,742

4,815

11,281

Current liabilities

11,718

Net assets

9,533

857

1,405

1,326

714

576

Others691

749

Total assets

28,78928,301

Valuation and translation
adjustments■ Consolidated statement of change in net assets FY2010 (April 1, 2009 – March 31, 2010)(Millions of yen)

Total valuationand translation
Common stock Capital surplus Retained earnings Treasury stock Total shareholders’ equity adjustments
Capital stock

Outstanding as of March 31, 2009

10,199

4,182

7,843

(2,303)19,921(1,600)Minority
interests

Total net
assets558

18,880Change in value for consolidated
accounting year
FY2010 net income

217

Acquired treasury stock(2)

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

7

217

217

(2)

(2)

—

(112)

35

(77)

Total change in value for consolidated
accounting year

—

—

217

(2)

215

(112)

35

138

Outstanding as of March 31, 2010

10,199

4,182

8,061

(2,305)

20,137(1,713)594

19,018

■ Consolidated statements of income
Period(Millions of yen)

Year ended
March 31, 2010

Year ended
March 31, 2009

21,997

26,338Operating income

354

951

Ordinary income

325

1,394

Net income for FY2010 and FY2009
adjusted for taxation, etc.

418

1,176

Net income

217

604

Account

Net sales

Trends of net sales (Millions of yen)
The 59th
period30,416

The 60th
period26,338

The 61th
period21,9970

10,00020,00030,000Trends of operating income (Millions of yen)
The 59th
period■ Consolidated statements of cash flows
Period(Millions of yen)

Year ended
March 31, 2010

Year ended
March 31, 2009

Net cash from operating activities

2,979

1,108

Net cash from investing activities

(241)

(965)

Net cash from financing activities

(189)

(951)

Effect of exchange-rate changes on cash andcash equivalents

(101)

(397)

Net increase (decrease) in cash and cash
equivalents

2,446

Cash and cash equivalents at beginning of
period4,960

Cash and cash equivalents at end of period

7,407

Account

3,022

The 60th
period951

The 61th 354
period
0

1,000

2,000

3,000

Trends of ordinary income (Millions of yen)
The 59th
period3,210

The 60th
period1,394(1,207)
The 61th 325
period

6,167
0

1,000

2,000

3,000

4,960

Trends of net income (Millions of yen)

■ Consolidated subsidiaries in each business segment
Business segment

Company names

Imaging & Information
Business

MUTOH INDUSTRIES LTD., MUTOH ENGINEERING INC.,
MUTOH Belgium nv, MUTOH DEUTSCHLAND GmbH.,
MUTOH AMERICA INC. SE Group S.A.
MUTOH HONG KONG LIMITED,MUTOH SINGAPORE PTE LTD, MUTOH AUSTRALIA PTY LTD

Information Service
Business

MUTOH INDUSTRIES LTD.,
MUTOH ITEX Co., Ltd.

Real-Estate Leasing
Business

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

Other Business

MUTOH ENGINEERING INC.,
MUTOH ENTERPRISES LTD.

The 59th
period1,802

The 60th
period604

The 61th 217
period
0

500

1,000

1,500

2,000

(Note) In May 2010, MUTOH EUROPE nv changed its name to MUTOH Belgium nv.

8

Company Profile (As of March 31, 2010)
Name:

MUTOH HOLDINGS CO., LTD.

Established:

March 5, 1952

MUTOH group companies
Domestic Subsidiary Companies(founded: December 1942)

MUTOH INDUSTRIES LTD.

Common stock:

10,199 million yen

MUTOH ENGINEERING INC.

Head office:No.5 TOC Building, 21-1, Nishi-Gotanda,
7-chome, Shinagawa-ku, Tokyo 141-8683
Tel: +81-3-5740-8700

MUTOH ENTERPRISES LTD.
MUTOH ITEX Co., Ltd.
Overseas Subsidiary Companies

Main business:

Management and assets management of
the Group companies

Website address:

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

MUTOH AMERICA INC.
MUTOH Belgium nv
MUTOH DEUTSCHLAND GmbHSE Group S.A.
MUTOH HONG KONG LIMITEDMUTOH SINGAPORE PTE.LTD.
MUTOH AUSTRALIA PTY.LTD.

(Note) In May 2010, MUTOH EUROPE nv changed its name to MUTOH Belgium nv

Directors (As of June 29, 2010)

9

Masanori Takayama

Chairman of the Board

Masanobu Takeda

Full-time Auditor

Nobumasa Hayakawa

President

Hiroki Nakano

AuditorYuji Yata

Director

Nobuaki Kunimine

Auditor

Arthur Vanhoutte

Director

Yoshiyuki Takayama

Director

Stock information (As of March 31, 2010)■ Number of shares issuable

170,000,000■ Number of shares issued

54,818,180■ Number of shares per unit

1,000

■ Number of shareholders

4,374■ Major Shareholders
Number of
Ratio of
Shares Held Shareholding(Shares)(%)

Name
TCS Holdings Co., Ltd.

13,200,000

28.69

Mutoh Holdings Trading Partners
Shareholding Association

2,880,958

6.26

Hiroshi Mutoh

2,288,514

4.97

Mizuho Bank, Ltd.

2,121,399

4.61

Eiji Mutoh

1,800,586

3.91

Japan Trustee Services Bank, Ltd.
(Trust placed in Chuo Mitsui Asset Trust andBanking Company, Limited and Trust Accountof CMTB Equity Investments Co., Ltd)1,457,000

3.17

The Chase Manhattan Bank N. A. London
S. L. Omnibus Account

1,126,000

2.45

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

1,059,000

2.30

Ikuko Mutoh

888,603

1.93

Unisystem Co., Ltd.

669,000

1.45(Note) 1. The Company holds 8,811,839 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 by the number of shares held

■ Breakdown of shareholders
Securities companies
1.15%
26

Foreign companies
5.12%
49

5 or more
2.79%
255

1 or more
6.40%
2,114

10 or more
7.81%
236
50 or more
4.42%
36

Financial
institutions
14.76%
32

Other companies
46.89%
243

Less than 1
0.80%
1,693

Individuals and others
32.08%
4,024

100 or more
9.52%
27

500 or more
4.88%
41,000 or more
63.38%
9

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

Mail address and Telephone number :8-4 Izumi 2-chome, Suginami-ku, Tokyo 168-0063
Tel. +81-120-78-2031 (toll-free)
Stock Transfer Agency Department
The Chuo Mitsui Trust and Banking Company, Ltd.
Stock transfer agent services are provided at branch offices in Japan of The Chuo Mitsui Trustand Banking Company, Ltd., and the Head Office and branch offices in Japan of Japan
Securities Agents, Ltd.

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 The Chuo Mitsui Trust and Banking Company, Ltd., an account management institution of special accounts.
2. Payment of accrued dividends
Please make all requests to The Chuo Mitsui Trust and Banking Company, Ltd., which is the administrator of the shareholder register.
3. Notification about the characters used for the addresses and names of shareholders
Following the implementation of the electronic share certificate system, for any Kanji characters used for the addresses and names ofshareholders that are not recognized in the book−entry transfer system used by the JASDEC Hofuri system, all or some of the characters will
be changed to characters or katakana symbols that are recognized by the JASDEC Hofuri system, and be registered accordingly on theshareholder register. We kindly request the understanding of shareholders if the characters in their address on any notifications sent havebeen changed to those recognized by the JASDEC Hofuri system. We advise shareholders to contact their securities company for any concerns
regarding the characters that are registered for their names and addresses.