63rd (Fiscal Year 2011)

1st Half Financial Report
April 1 to September 30, 2011

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

But we must express our condolences to those affected by the Tohoku disaster,
as well as our wishes for a prompt recovery.
We hereby present our 63rd (Fiscal Year 2011) 1st Half Financial Report.

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 heightened concerns
regarding the outlook of the global economy due to such factors as the financial instability in Europe, decline in personal
consumption and severe employment conditions in the U.S., and the impact of the natural disaster in Thailand.
Against this background, in our core Imaging and Information Business we have introduced in the first half of fiscal 2011 the “VJ1624,” a large-format inkjet printer supporting global business strategies in the signage industry, which has a maximum output
speed 30% exceeding that of previous VJ printers. In addition, in the latter half of the fiscal year, we introduced the high-end “VJ1638” model, which has a new staggered-dual-head print technology that enables faster output by increasing the print widthfrom a single carriage scanning.
In our Other Business segment, we have worked toward strengthening our sales of LED-related products, such as Light Board“LitaVi” for visual inspections in manufacturing processes. In the sports care product category, we are proactively marketing our
Finoa brand products and are aiming to create a business field that will become a new pillar of growth, for example, by launchinga new color taping product, namely “Finoa Color Taping JFA National Team Version.”
In general, our business performance was affected by the impact of the sustained rapid appreciation of the yen amid the limited
impact of the foreign exchange interventions by the government and Bank of Japan and the slump in the global economy, which
remained unable to stage a full-fledged recovery.
Looking at the consolidated business performance for the second quarter of the current fiscal year emerging from thesecircumstances, net sales stood at ¥10,579 million (down 7.3% year on year) and operating income came to ¥463 million (down
40.2% year on year). Meanwhile, ordinary income came to ¥680 million (up 23.0% year on year), despite the impact of
exchange losses stemming from the rapid appreciation of the yen, due to the posting of equity method investment gains after
SEKONIC Corporation became a new equity method affiliate in the first quarter. Furthermore, we incurred a net loss of ¥297
million in the second quarter (compared with a net income of ¥545 million in the same period last year). This came as a result ofour posting of extraordinary retirement benefits, as an extraordinary loss, stemming from the streamlining of the development
and manufacturing-related divisions of MUTOH Belgium nv.
Also, MUTOH Holdings and the MUTOH Group, which operates in Japan, are pleased to inform you that we will relocate ourheadquarters to our own office building (3-1-3 Ikejiri, Setagaya-ku, Tokyo) to streamline our office operations. We will begin
operations at our new address on Dec. 26, 2011 (Mon.). We anticipate utilizing this opportunity to further improve our services.
We greatly appreciate your support and ask for your continued assistance and cooperation.

1

Consolidated Financial Highlights
Consolidated net sales
63rd (FY2011) 1st Half period:

1st Half¥10,579 million

60th (FY2008) period:

61st (FY2009) period:

62nd (FY2010) period:

26,338 million
14,997 million

21,997 million
10,513 million

21,920 million
11,417 million

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

Consolidated operating income
63rd (FY2011) 1st Half period:

1st Half

Real-Estate Leasing Business and Other Business¥463 million

60th (FY2008) period:

61st (FY2009) period:

62nd (FY2010) period:

951 million
1,300 million

354 million(2) million

1,202 million
775 million● 63rd (FY2011) period:¥10,579 million
915 1,231

Consolidated ordinary income
63rd (FY2011) 1st Half period:

1st Half

61st (FY2009) period:

62nd (FY2010) period:

1,394 million
1,621 million

325 million(34) million

962 million
553 million

Consolidated net income (loss)
63rd (FY2011) 1st Half period:

1st Half¥680 million

60th (FY2008) period:

8,432● 62nd (FY2010) period:¥(297) million

60th (FY2008) period:

61st (FY2009) period:

62nd (FY2010) period:

604 million
924 million

217 million(269) million

800 million
545 million¥11,417 million
900 1,263

9,253

Consolidated gross assets
63rd (FY2011) 1st Half period:¥27,898 million

60th (FY2008) period:

61st (FY2009) period:

62nd (FY2010) period:

28,301 million

28,789 million

28,462 million

Consolidated net assets
63rd (FY2011) 1st Half period:● 61st (FY2009) period:¥10,513 million¥18,462 million

60th (FY2008) period:

61st (FY2009) period:

62nd (FY2010) period:

18,880 million

19,018 million

19,459 million

1,003

1,647

7,862

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

Forecast of consolidated
business results

Net sales

OperatingincomeOrdinary
incomeNet income

22,500

1,250

1,600

1,100

Figures announced on
August 10, 2011.

We announced our revised full-year forecasts on August 10, 2011, after taking into account such factors as theposting of our equity method investment gain related to our capital alliance with SEKONIC Corp. However, in thesecond quarter, we incurred a net loss after recording extraordinary retirement benefits, etc. accompanying thestreamlining of the development and manufacturing divisions of MUTOH Belgium nv and due to the relentless
appreciation of the yen.
As for the second half of the fiscal year, it is difficult to make reasonable estimates for that period at this point intime in light of the continued appreciation of the yen and many unstable factors, including the uncertain economic
conditions in Europe and the U.S. We are currently preparing our full-year forecasts and will disclose them as soon
as they become clear.

2

Overview of Business Segments
In Asia, sales in primarily China were steady, while those in
North America, Europe and Japan fell below previous-year

79.7%
Imaging &Information
Equipment
Businesslevels, depressed by their sluggish economies and theimpact of the upsurge and continued appreciation of theyen.
In Asia, net sales and operating income stood at ¥4,295

Net Sales¥8,432million

million and ¥325 million, respectively, while in North
America, net sales and operating income came to ¥1,123
million and ¥55 million, respectively. In Europe, net sales
and operating loss totaled ¥3,013 million and ¥27 million,
respectively.

Although IT investments remain sluggish, net sales andoperating income were slightly above previous-year levels.

8.7%
Information
ServiceBusiness

This is due to our efforts to expand sales through our new
proactive sales policy in educational markets andcontinuous cost-cutting efforts.
As a result, this sector recorded net sales of ¥915 million

Net Sales

and an operating income of ¥35 million.

¥915million

In the Real Estate Leasing Business, net sales decreasedslightly due to the departure of some tenants, despite theReal-Estate
Leasing
Business and
Other
Businesses

11.6%

continued steady trend. This sector recorded net sales of¥399 million and an operating income of ¥229 million.
In Other Business, sales were sluggish, despite proactive
efforts to market new products, owing to the limited

Net Sales¥1,231million

impact of the product launches in the latter half of thesecond quarter. The lackluster sales were also due to theeffects of the continued slump in consumer spending in
the domestic market. The segment’s income/loss situation
improved, thanks to the impact of cost-cutting measures,etc. This sector recorded net sales of ¥831 million and an
operating loss of ¥6 million.

3

Published the high-speed, large-format inkjet printer“VJ-1638” equipped with two state-of-the-art print heads.
The main feature of our new product, “VJ-1638,” (1,625 mm width) is “highspeed.” Realized maximum high-speed printing of 48 m2/h through ourcutting-edge staggered-dual-head print technology, in addition to anincrease in the print width per single carriage scanning.
Image quality also benefits from new printing modes and an optimum
combination of seven dot sizes to suit the desired resolution. As a result,people can use the product for a wide range of applications.
Moreover, as an option, we offer a 1,000 ml ink-pack and “ SPECTROVUE
VM-10,” a colorimeter that allows for efficient color management withease. The model thus meets the varied needs of professionals.

High-speed, large-format inkjet printer “VJ-1638”“M-Draf Facility” facility maintenance management system
What is the “M-Draf Facility” facility maintenancemanagement system?
Can uniformly manage all information regarding facility maintenance,
including inspection programs for facilities/machines (preventive
maintenance) and record-keeping of malfunctions/accidents,
etc.
Used by manufacturers
Can manage periodic inspection schedules/histories of building/electric/plumbing and sanitary/air-conditioning facilities andothersUsed by building (property) management/building maintenance
operators
Can manage the handling of products and their quantities
Ideal for information management for nonstandard-size sales
trend/visit-related memos that are easily scattered and lost.
Used by sales companies of facilities, machinery and medical
equipment

Can show images such as site maps
and layout charts of plants
In addition, can show detailed
images using image commands

Can easily find informationneeded through visual images
provided on the Internet

名称

ボイルタンク1

設置場所

BC工場

稼動開始

2009年

点検日

毎月第三金曜日

D棟

管理責任者 技術部

Can easily confirm targeted equipmentby its image and obtain drawings andrelated information

Administrators can freely set up
information and visual images
that have been referred to.

Launched LED Light Board “LitaVi” for visual inspection
Our new product, “LitaVi,” can be used on various occasions for visual inspection byenabling operators to accurately check for the existence of foreign substances anddefects.
Feature Optimal brightness can be adjusted thanks to its stepless light volume
regulation function.
Furthermore, by maintaining that setting, inspectors are able to work
under the same brightness conditions when resuming inspections after
the power source had been switched off.
Provides consistent brightness without flickering for extended periods of time,allowing for steady inspection, thanks to an LED illuminant which prevents the
reduction in light volume that occurs in fluorescent lights approaching their life
expectancy.
We have a rich line-up of products compatible with various types of visualinspection needs ranging in size from A1 to A4.
Can meet the needs of any inspection occasion by allowing operators to freely
adjust the angle (0~75°) and height (720~1,070 mm).
(e.g., when setting up TW-200A in MLT-A1)

4

Topics
Launched “Finoa Color Taping JFA National Team Version”“Finoa Color Taping JFA National Team Version” that focuses on materials andfunctionality is now available.
Increased its line-up of colors thatcan be worn with uniforms andsocks to 15.
Finoa Color Taping, ranging fromfixing tape (elastic/non-elastic) tounderwrap and kinesiology tape,
supports all athletes.
Going forward, MUTOH Enterprises
Ltd. will strive to develop and provide a wide range ofsports products that help increase the comfort of athletes’
movements.

Began evaluation for car wrappings
Began evaluating the light resistance and durability of special-purpose films used for wrapping MUTOH’s entire
line of commercial vehicles.
Car wrapping is becoming more widespreadin Europe and the United States. Films
featuring desired pictures and letters printed
with a large-format ink jet-printer are pasted
on to adorn the entire body of the car.
Although car markings, which are pasted
designs, company logos, etc., on parts ofcars, are now mainstream in Japan, they may
evolve into a car wrapping market in the
future. Going forward, MUTOH has started
conducting verification tests with a view
toward developing its car wrapping business.

5

MUTOH Holdings’ website has been redesigned.
http://www.mutoh-hd.co.jp
We have redesigned our homepage to provide information on
MUTOH that is more detailed and easier to understand. On the top

Our top page has been significantly
redesigned

page, images related to our “Imaging & Information Equipment
Business,” “Information Service Business” and “Other Business”
change automatically. Furthermore, we have added banners, etc.
linked to the various pages containing information.
Regarding IR information, we have created a new top page forshareholders and investors to make it easier for them to accessinformation that they would like.
Going forward, we intend to enhance and upgrade our homepage
to meet your need.

We have set up a new top
page for our IR information.

Earnings results forthree terms are shownusing graphs.

6

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

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

2011

2010

As of March 31,
2011

AssetsCurrent assets(Millions of yen)

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

Notes and accounts
receivable

16,53017,541

17,276

Current liabilities

7,250

4,255

8,004

4,027

7,601

4,300

4,276

4,912

5,453

4,991

3,252

3,296

2,900

104

103

Others

2,726

2,052

1,986

3,456

3,876

4,011

261

245

4,679
Long-term debt

OthersFixed assets

Tangible fixed assets

Intangible fixed assets

Investments andother assets

Investment securities

7

As of March 31,
2011

5,979

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

Long-term liabilities
Inventories

2010

Liabilities

Notes and accounts
payableCash and bank deposits

2011

747

596

694

11,367

10,82911,186

8,544

8,889

8,809

526

2,296

1,514

656

1,283

608

600

Others

3,456

3,615

3,766

Total liabilities

9,436

9,330

9,002

Shareholders’ equity

20,494

20,682

20,930Capital stock

10,19910,19910,199

Capital surplus

4,181

4,182

4,182

Retained earnings

8,426

8,607

8,862

Treasury stock(2,313)(2,306)(2,312)

Total other cumulative
comprehensive income(2,667)(2,256)(2,109)Minority interests

635

615

637

Total net assets

18,462

19,04019,459Total liabilities and net assets

27,89828,37028,462

Net assets

1,775

979

Others

782

675

796

Total assets

27,89828,37028,462

■ Consolidated statements of income(Millions of yen)

Period 1st Half period ended

September 30, 2011

Account

1st Half period ended Year ended March 31,
September 30, 20102011

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

10,57911,417

21,920The 61st
period10,513Operating income (loss)

463

775

1,202

The 62nd
period11,417

Ordinary income (loss)

680

553

962

Net sales

Income (loss) before income taxes
and minority interests

(222)

655

734

Net income (loss)

(297)

545

800

1st half year

21,997

21,920The 63rd
period10,5790

10,00020,00030,000Trends of operating income (Millions of yen)
Full fiscal year

■ Consolidated statements of cash flows(Millions of yen)

Period 1st Half period ended

September 30, 2011

Account

1st Half period ended Year ended March 31,
September 30, 20102011

Net cash from operating activities

604

1,036

1,094

Net cash from investing activities

(22)

(21)

(372)

Net cash from financing activities

(476)

(39)

(94)

Effect of exchange-rate changes oncash and cash equivalents

(448)

(377)

(441)

Net increase (decrease) in cash and cash
equivalents

(342)

597

185

Cash and cash equivalents at beginningof period

7,592

7,407

7,407

Cash and cash equivalents at end of period

7,250

8,004

7,592

The 61st
period-2
354
775

The 62nd
period

1,202

The 63rd
period-500463
0Imaging & Information
Equipment Business

1,000

The 61st
periodInformation 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.
SEKONIC TECHNOLAB CO.,LTD.

1st half year

-34
325
553

The 62nd
period962

The 63rd
period

680
0

500

1,000

Trends of net income (Millions of yen)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.

1,500

Trends of ordinary income (Millions of yen)

-500

Business segment

500

Full fiscal year

■ Consolidated subsidiaries in each business segment

1st half year

Full fiscal year

The 61st
period

-269
217
545

The 62nd
periodThe 63rd
period-500

1st half year

800
-297
0

500

1,000

(Note) 1. In June 2011, SE Group S.A. Changed its name to MUTOH North Europe S.A.
(Note) 2. In July 2011,we set up SEKONIC TECHNOLAB CO.,LTD.

8

Company Profile (As of September 30, 2011)
Name:

MUTOH HOLDINGS CO., LTD.

Established:

March 5, 1952

Head office:7-chome, Shinagawa-ku, Tokyo 141-8683
Tel: +81-3-5740-8700(founded: December 1942)
Capital stock:

10,199 million yen

Main business:

Management and assets management of
the Group companies

No.5 TOC Building, 21-1, Nishi-Gotanda, ur head office functions will be relocated to the following addressO
as of Dec. 26, 2011.
1-3,Ikejiri 3-chome,Setagaya-ku,Tokyo 154-8560
Tel: +81-3-6758-7100

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.
• SEKONIC TECHNOLAB CO.,LTD.

• MUTOH AMERICA INC.

(Note) 1. In June 2011, SE Group S.A. Changed its name to MUTOH North Europe S.A.
(Note) 2. In July 2011, we set up SEKONIC TECHNOLAB CO.,LTD.

Directors (As of September 30, 2011)

9

Masanori Takayama

Chairman of the Board

Masanobu Takeda

Full-time Auditor

Nobumasa Hayakawa

President

Hiroki Nakano

AuditorYuji Yata

Director

Nobuaki Kunimine

AuditorHisayoshi Aoki

Director

Yoshiyuki Takayama

Director

Stock information (As of September 30, 2011)■ Number of shares issuable

170,000,000■ Number of shares issued

54,818,180■ Number of shares per unit

1,000

■ Number of shareholders

4,432■ Major Shareholders
Number of
Ratio of
Shares Held Shareholding(Shares)(%)

Name
TCS Holdings Co., Ltd.

13,220,000

28.76

Mizuho Bank, Ltd.

2,121,399

4.62

Hiroshi Mutoh

1,855,514

4.04

Eiji Mutoh

1,800,586

3.92

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

1,140,000

2.48

Unisystem Co., Ltd.

923,000

2.01

Ikuko Mutoh

888,603

1.93

The Master Trust Bank of Japan, Ltd.
(Trust Account)733,000

1.59

NTT System Development Co.,Ltd.

712,000

1.55(Note) 1. T he Company holds 8,854,511 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
1.69%
32

◆ Breakdown by the number of shares held
Foreign companies
4.67%
48

5 or more
3.10%
282

1 or more
6.51%
2,218

10 or more
8.68%
262

Less than 1
0.73%
1,583

50 or more
4.69%
39
Financial
institutions
13.08%
31
Other companies
52.07%
245

Individuals and others
28.49%
4,076

100 or more
12.94%
35

500 or more
7.81%
61,000 or more
55.54%
7

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 :( 1)

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.( 2)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.
Information :( 1) Chuo Mitsui Trust and Banking Co., Ltd. is our Administrator of Shareholder Register and account management institution of special
accounts. As of April 1, 2012, Chuo Mitsui Trust and Banking Co., Ltd., Sumitomo Trust and Banking Co., Ltd. and Chuo and Mitsui Asset
Trust and Banking Co., Ltd.will merge and establish the new holding company,“ SUMITOMO MITUI TRUST BANK,LIMITED” based on
permission granted by relevant authorities.
( 2) Japan Securities Agents, Ltd. will no longer provide stock transfer agent services as of April 1, 2012.