Mutoh Holdings to sell fixed assets, expects ¥719m extraordinary gain

Mutoh Holdings Co., Ltd. announced on October 17, 2025, that its board of directors resolved to transfer fixed assets owned by consolidated subsidiary, Mutoh Kogyo Co., Ltd. The assets include land and a four-story reinforced concrete building in Ikejiri, Setagaya-ku, Tokyo, currently used as an office. This divestiture is part of the Mutoh Group's strategy to improve profitability, optimize inventory, reduce assets, and fundamentally review fixed costs, emphasizing cash flow.

The company anticipates an extraordinary gain (gain on sale of fixed assets) of approximately JPY 719 million from this transaction, to be recorded in the third quarter consolidated financial results. The transfer price and book value are not disclosed due to the transferee's wishes. The gain is an estimated amount after deducting the book value and expected transfer-related expenses from the transfer price.

The transferee is a single domestic corporation, whose identity is also being withheld as per their request. There are no capital, personnel, or transactional relationships, nor any related party issues between the transferee and Mutoh Holdings or its affiliated companies. The property transfer is scheduled for October 29, 2025. Mutoh Holdings currently does not plan to revise its full-year consolidated earnings forecast of JPY 18,500 million in sales, JPY 1,100 million in operating profit, JPY 1,100 million in ordinary profit, and JPY 700 million in net profit attributable to parent company shareholders.