MUTOH HOLDINGS CO.,LTD.

■Message to Shareholders

We would like to express our sincerest gratitude to all of the shareholders who have continued to support us.

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.

■Business Situation and Outcomes

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 “VJ-1624,” 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 “VJ-1638” model, which has a new staggered-dual-head print technology that enables faster output by increasing the print width from 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 launching a 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 these circumstances, 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 of our 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 our headquarters 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.