M O R I TA R E P O RT 2 0 1 0

To Shareholders and Investors
Business Report for the 77th Term
From April 1, 2009 to March 31, 2010

Protecting Human Life and Mother Earth

Securities identification code:6455

Morita Topics
Morita’s Forest Fire Fighting Concept Car
to the World!
〜presented at INTERSCHUTZ 2010, world’s leading trade fairfor public safety〜

In Japan, more than 2,000 cases of forest fire are reported annually, andlarge-scale forest fires are on the increase in many parts of the world
including the United States and Australia in recent years. Such fires not
only burn down forest resources and cause environmental damages but
also trigger many other damages such as deterioration of global
economic activities and health damages. At an international conference
held in Greece in October 2008, participants pointed out the “importanceof initial fire control and prevention of spreading of fire.” With a missionof “protecting human life and mother earth,” Morita embarked on thedevelopment of new fire fighting technologies, and in April this year, we
successfully developed and announced a concept car for organizing andleading effective fire fighting strategies, which is capable ofcommunicating information such as weather and forest conditions withland and aerial bases and fire control headquarters from the front line.

Main Features of Concept Car
・ Operation deck for exchanging information with other teams
・ LED lighting and camera to deliver images of the disastersite, which are mounted on a telescopic pole powered by anelectric water pump.
・ Deck gun (Discharge nozzles) on the sides of the operation
deck, which allows fire fighters to carry out fire fighting
activity while the vehicle is running
・ Compressed Air Foam System (CAFS) unit01

M O R I TA R E P O R T 2 0 1 0Development of State-of-the-art Ladder Truck
SUPER GYRO LADDER MLL Series〜presented at INTERSCHUTZ 2010, world’s leading trade fairfor public safety〜

Striving to “save lives and control fire as quickly as possible,” Morita
has developed SUPER GYRO LADDER MLL SERIES, ladder trucks
equipped with a number of new technologies including faster extension
and retraction speed as a result of lighter weight ladder, and a latest
control system that is capable of memorizing the ladder movements andrepeating the same movements. It is the latest model designed forhigher operability, not only equipped with a unit controlling the ladderfrom swinging, but also capable of automatically controlling theextension/retraction and raising/lowering of the ladder, facilitating thehorizontal and vertical movements of the basket, and commanding
complicated movements with a single push of a button. SUPER GYROLADDER MLL SERIES delivers the technology, safety, and security
that only Morita can provide.

A number of CAFS-equipped vehicles
launched with advanced equipments!
Up to now, Morita has sold about 300 fire fighting vehicles tomunicipalities equipped with a new fire fighting system, CAFS
(Compressed Air Foam System), which has been recognized for its
effectiveness and is becoming a standard system for fire fighting
vehicles. With lessons learnt from the Great Hanshin Earthquake,
Morita developed CAFS in 2007, which can carry out effective fire
control with less water in areas with poor access to water resources. In
the following year, it succeeded in the development of a CAFS vehicle

M O R I TA R E P O RT 2 0 1 002

with an ejectorbased water priming
system powered bycompressed air. In
May this year, it haslaunched a discharge
nozzle with minimum
fluid friction in orderto maximize the CAFS
capacity. This nozzle
is capable of not only
switching its flow
path between for CAF
and for water, but also protecting fire fighters from heat and smoke byspraying water fog in front of them to assist safety in fire fighting
activities.
CAFS-equipped fire fighting vehicle is a system that Morita presents toachieve higher efficiency in fire fighting activities by combining thecooling effect and suffocating effect of foam and to minimize damages
from sprayed water.

“Eco-utan Fund”─Collecting Old Fire Extinguishers
for Creating Forest

In January this year, fire extinguisher manufacturers have joined hands
to start collecting old extinguishers, orchestrated by a extensive
recognition system of Japan Fire Extinguisher Manufacturers’
Association, in order to prevent accidents due to the use of decrepit fire
extinguishers and ensure that safe fire extinguishers are installed into
households. Morita Bohsai Tech and Miyata Industry have been
actively collecting old fire extinguishers through their sales offices anddistributors and, in April this year, have started to donate “1 yen” foreach fire extinguisher collected to NPO Asian Green Forest Network to
assist their “Eco-utan fund.”
The number of orangutans living in a tropical rain forest is said to be an

03

M O R I TA R E P O R T 2 0 1 0

indicator of the soundness of the ecosystem of the tropical rain forest.
They play the role of scattering plants’ seeds round the forest and are
indispensable for maintaining the forests. If orangutans are living
happily, it means that the tropical rain forest they live in is growing
soundly.
We hope that, through the fund, as many trees as possible will beplanted in forests throughout the world to ensure safe habitats foranimals.

Spin-off of Miyata Cycle
After 120 years since the development of the prototype model of thefirst safety-focused domestic bicycle, the Bicycle Division of Miyata
Industry has made a fresh start on June 1 this year by spinning off into
Miyata Cycle, Morita Holdings’ 100% subsidiary. Miyata Cycle will
strive to boost its competitiveness and accelerate its growth by shifting
to a marketing-led business structure that will allow it to provide
products and services that are more in tune with the needs ofcustomers in a swifter manner.
Last August, Miyata Industry signed a sole distributorship agreementwith Merida for its global brand “MERIDA,” which is currently sold in
54 countries. We offer an attractive lineup of bicycles from entry-level tohigh-end products that are sure to satisfy sport bike users.

Scultura EVO TEAM-20

M O R I TA R E P O RT 2 0 1 004

New Scrap Cutting Machine Eco Guillo Shearand Press Machine 35PAL Press“Eco Guillo Shear” has been newly added to Morita Environmental
Tech’s Guillotine series. The new model is desgned to install in 3/4 site
compared to the conventional models in the Guillotine series, which
tend to be large in order to cut
and process waste metals from
scrapped buildings, andachieved less noise, vibration,and energy with the use of anew oil-hydraulic unit. This is a
strategic model designed tomeet the needs of users.
Similarly, 35PAL Press is a
scrap press machine that has
been developed with the same
concept in mind. “Lessenergy” and “environmental
friendliness” have become the leading keywords today. We willcontinue to propose products that will play a part in achieving lessenergy and a recycling society.

Cover page
A drawing by Shotaro Hikita, a second grade student in
Kokubunji, Tokyo, selected for the best award in the 5th Future
Fire Truck Idea Contest for elementary school students
throughout Japan.

05

M O R I TA R E P O R T 2 0 1 0

Message from Top Management
We would first like to extend our deep appreciation for your continued
support for Morita.
We are pleased to provide you with the Business Report on the 77th
term and report on the business overview.

Business Overview
In this consolidated fiscal year, the Japanese economy remained in
uncertainty due to refrainment from capital investment and sluggish
consumer spending, although earnings showed signs of recovery insome businesses.
Under such situations, Morita Group has been striving to strengthen its
earning capacity by promoting cost reduction and cutting expenses, inaddition to active marketing activities.
As a result, albeit decrease in orders for the fire control equipments andindustrial machinery, sales in the pump division have significantly
increased thanks to supplementary budgets, pushing sales to 61,737
million yen, which is an increase of 5,032 million yen or 8.9% from theprevious term; operating profit to 4,223 million yen, up 1,839 million yen
or 77.2%; and ordinary profit to 4,503 million yen, up 1,720 million yen or
61.8%, a record high since listing on the market. As for net income,although 316 million yen in impairment loss has been marked as
extraordinary loss, it has increased by 924 million yen or 82.6% to 2,044
million yen.

M O R I TA R E P O RT 2 0 1 006

Business Condition by Segment
蚪Disaster Prevention Business(millions)
50,000Sales
46,12838,97540,00031,651

30,000 27,309
20,00010,00002007.3 2008.3 2009.3 2010.3

In the Disaster Prevention Business, the sales have increased by 7,153
million yen or 18.4% to 46,128 million yen due to increased sale in thepump division thanks to supplementary budgets, and as a result of
Miyata Industry joining Morita’s consolidated subsidiaries in the third
quarter last year. The operating profit marked 4,337 million yen, up
2,501 million yen or 136.2% from the previous term, pushed bysignificant increase in revenues in the pump division albeit the initialsluggish growth in the fire extinguisher/fire control equipment division
due to refrainment from capital investment.

蚪Environmental Business(millions)
20,000Sales

15,447
15,000 14,283 14,706
11,945

10,0005,000
02007.3 2008.3 2009.3 2010.3

In the Environmental Business, orders and sales in the industrial
machinery segment such as Guillotine Press and Scrap Baling Press
and the environmental conservation vehicle segment such as refuse
disposal cars remained slow, pushing down the sales to 11,945 million
yen, which is a decrease of 3,502 million yen or 22.7% from the previous
term. The operating profit decreased by 498 million yen from theprevious term, resulting in 10 million yen in loss.

07

M O R I TA R E P O R T 2 0 1 0蚪Other Businesses
The Bicycle Division has marked 3,663 million yen in sales and 97
million yen in operating loss.

Issues we need to address
Our business environment is expected to get more challenging andchange more rapidly. To deal with such situations, Morita will strive toestablish a strong brand with loyal clientele by revisiting our principlesof “technological improvement” and “achievement of customer
satisfaction.” Following are the specific issues we need to address:
1) Increase the earning power of the existing businesses
2) Increase the earning power of the overseas businesses
3) Increase the market share through the launch of high valueadded products
4) Human resource development
Morita Group will strive further to improve its corporate value throughspeedier management and strengthened earning power.
We would like to take this opportunity to ask our shareholders for theircontinuing support and encouragement.

June 2010

Masahiro Nakajima
President

M O R I TA R E P O RT 2 0 1 008

FINANCIAL HIGHLIGHTS（Consolidated）●Net Sales（Millions of yen）
60,00050,000●Ordinary Profit
61,73756,704（Millions of yen）
5,000
4,503

46,3574,000

41,59240,000
3,000

2,653

2,783

2,376

30,0002,000
20,0001,000

10,000002007.3 2008.3 2009.3 2010.3●Net Income●Return on Assets（ROA）（％）（Millions of yen）
2,500

7
2,044

2,000
1,500

2007.3 2008.3 2009.3 2010.3

6.1

6
1,336
1,066

5

1,119

1,000

4.4
4.1

4

500

4.0

0

3
2007.3 2008.3 2009.3 2010.3

2007.3 2008.3 2009.3 2010.3●Shareholders' Equity Ratio●Interest-Bearing Liabilities（％）
60（Millions of yen）
20,00018,314

14,74815,000

50.2

50
46.5
42.4

9,850

10,000
7,312

40

37.5

5,000

30

0
2007.3 2008.3 2009.3 2010.3

09
01

M O R I TA R E P O R T 2 0 1 0

2007.3 2008.3 2009.3 2010.3

Consolidated Summary● Consolidated Balance Sheets

Morita Holdings Corporation and Consolidated Subsidiaries
As of March 31, 2009 and 2010
Millions of yen

AssetsCurrent assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total assets
Liabilities
Current liabilities
Long-term liabilities
Total liabilities
Net assets
Shareholders' equity
Common stock
Additional paid-in capital
Retained earnings
Treasury stock, at cost
Total shareholders' equity
Valuation and translation adjustments
Unrealized gains (losses) on available-for-sale securities
Deferred gains (losses) on hedges
Unrealized gains (losses) on revaluation of land
Foreign currency translation adjustments
Total valuation and translation adjustments
Minority interests in consolidated subsidiaries
Total net assets
Total liabilities and net assets

2009

2010

¥ 37,178¥ 36,269

30,686

29,778

451

433

5,993

6,576

¥ 74,310¥ 73,058¥ 29,506¥ 25,495

15,453

16,26044,96041,756

4,746

4,746

4,362

3,743

23,40025,142(2,711)(1,023)29,79832,608

(269)

150

(4)

(15)

(1,600)(1,728)

(61)

(50)

(1,935)(1,644)

1,486

338

29,34931,302¥ 74,310¥ 73,058

M O R I TA R E P O RT 2 0 1 0

1002

● Consolidated Statements of Income

Morita Holdings Corporation and Consolidated Subsidiaries
For the Years Ended March 31, 2009 and 2010
Millions of yen

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income
Other expenses
Income before income taxes
Income taxes
Current
Deferred

Minority interests in earnings of consolidated subsidiaries
Net income

2009

2010

¥ 56,704¥ 61,737

44,79447,30011,91014,437

9,526

10,213

2,383

4,223

1,033

697

1,904

927

1,512

3,993

1,189

2,299

(942)

(364)

246

1,935

147

13

¥ 1,119¥ 2,044Yen

Per share of common stock
Basic net income
Diluted net income
Cash dividends applicable to the year

2009

2010

¥ 26.63¥ 47.01

−

−

10.00

10.00

● Consolidated Statements of Cash Flows
Morita Holdings Corporation and Consolidated Subsidiaries
For the Years Ended March 31, 2009 and 2010
Millions of yen

2009

2010

Cash flows from operating activities¥ 2,269¥ 764

Cash flows from investing activities(3,509)(950)

Cash flows from financing activities

6,492(4,037)

Net increase (decrease) in cash and cash equivalents

5,252(4,224)

Cash and cash equivalents at beginning of year

3,947

9,200

¥ 9,200¥ 4,976

Cash and cash equivalents at end of year

1101

M O R I TA R E P O R T 2 0 1 0

● Consolidated Statement of Changes in Net Assets(in millions of yen)

Morita Holdings Corporation and Consolidated Subsidiaries
For the Year Ended March 31, 2010
Shareholders' equity
Commonstock

Balance at March 31, 2009

4,746

Additional
paid-in capital

4,362

Retainedearnings

Total
Treasury stock, shareholders'at costequity(2,711)

23,40029,798Amount of change
Cash dividends

(430)

(430)

Net income

2,044

2,044

Acquisition of treasury stock
Disposal of treasury stock(619)

Reversal of reserve forland revaluation

(61)

(61)

1,749

1,130
128

128

Net changes other thanshareholders' equity
Total changes
Balance at March 31, 2010

−
−

(619)

1,741

1,687

2,810

4,746

3,743

25,142(1,023)32,608Valuation and translation adjustments
Minority
Unrealized Deferred Unrealized
Foreign interests in
Total
gains on
gains
gains
currency
net assets
available(losses)on translation consolidated(losses)subsidiaries
for-salerevaluation adjustmentsonhedgessecuritiesof land

Balance at March 31, 2009

(269)

(4)

(1,600)

(61)

1,486

29,349Amount of change
Cash dividends(430)

Net income

2,044

Acquisition of treasury stock(61)

Disposal of treasury stock

1,130

Reversal of reserve forland revaluation
Net changes other thanshareholders' equity

128

419

(11)

Total changes

419

(11)

Balance at March 31, 2010

150

(15)

(128)

(857)

10

(1,148)(128)

10(1,148)

1,953(1,728)(50)

338

31,302M O R I TA R E P O RT 2 0 1 0

1202Company Profile
Overview
Company name

MORITA HOLDINGS CORPORATION

Inauguration of business
Establishment
CapitalApril 23, 1907

July 23, 1932

¥4,746mil

Osaka Head Office

5-5-20 Shoji-Higashi, Ikuno-ku, Osaka-shi Osaka

Tokyo Head Office

3-25-31 Nishishinbashi, Minato-ku, Tokyo

Type of BusinessControl/management of business activities
of group companies, and undertaking of
indirect management operations on acommission basis

Group Companies
MORITA CORPORATION
1-5 Techno Park, Sanda-shi, Hyogo, 669-1339, Japan
Manufacturing and sale of ladder trucks, pumpers, and otherfire trucks and specialty vehicles
MORITA BOHSAI TECH CORPORATION
3-25-31 Nishishinbashi, Minato-ku, Tokyo, 105-0003, Japan
Manufacturing and sales of disaster prevention equipment including dry chemical fire
extinguishers, and design, conservation and inspection of disaster prevention facilities
MORITA ENVIRONMENTAL TECH CORPORATION
1530 Konoda-cho, Funabashi-shi, Chiba, 274-0081, Japan
Design of waste recycling facilities and other waste disposal
facilities, and manufacturing and sales of large hydraulic equipment
MORITA ECONOS CORPORATION
1-48 Jinmu-cho, Yao-shi, Osaka, 581-0067, Japan
Manufacturing and sales of environment preservation vehicles
such as sanitation vehicles and garbage trucks
MORITA TECHNOS CORPORATION
5-5-20 Shoji-Higashi, Ikuno-ku, Osaka-shi, Osaka, 544-8585, Japanafter-service and maintenance of equipment and materials for fire trucks and rescue activities, and manufacturing
and sales of electronic applied machinery/equipment and information processing machinery/equipment
MIYATA INDUSTRY CO.,LTD.
1-1-1 Shimomachiya, Chigasaki-shi, Kanagawa, 253-8588, Japan
Manufacturing and sales of fire extinguishers, fire fighting
equipment, disaster prevention-related equipment and bicycles

13

M O R I TA R E P O R T 2 0 1 0

MORITA SOGO SERVICE CORPORATION
5-5-20 Shoji-Higashi, Ikuno-ku, Osaka-shi, Osaka, 544-8585, JapanMIYATA CYCLE CO.LTD.
3-25-31 Nishishinbashi, Minato-ku, Tokyo, 105-0003, Japan
ALUVO CORPORATION
1479-1 Kamikanzo, Iwata-shi, Shizuoka, 438-0115, Japan
MORITA U.G. CORPORATION
2-3-5 Kandasuda-cho, Chiyoda-ku, Tokyo, 101-0041, Japan
MORITA ENGINEERING CORPORATION
1-48 Jinmu-cho, Yao-shi, Osaka 581-0067, Japan
HOKKAIDO MORITA CORPORATION
13-2-17 Naebo-cho, Higashi-ku, Sapporo-shi, Hokkaido, 065-0043, JapanKAGOSHIMA MORITA PUMP CORPORATION
12-32, Matsubara-cho, Kagoshima-shi, Kagoshima, 892-0833, Japan
MORITA TOYO CORPORATION
1700-2 Konjinzuka, Sanagu-cho, Iga-shi, Mie, 518-0001, Japan
NANJING CHENGUANG MORITA ENVIRONMENT PROTECTIONSCIENCE & TECHNOLOGY CO., LTD
No. 188 Tianyuanzhong Road, Jiangning Economic & TechnicalDevelopment Zone, Nanjing, China, 211100
SICHUAN MORITA FIRE SAFETY APPLIANCES CO., LTD
No.8, Xinhua Avenue, Chengdu, Cross-Straits Technological,
Industry Park, Wenjiang District, China, 611130
MORITA HOLDRICH (HONG KONG) COMPANY LIMITED
FLAT/RM, 1909, 19/F, Hutchison HSE., 10 Harcourt RD., Central, Hong Kong
MORITA VIETNAM COMPANY LTD.
Minh Duc Commune, My Hao District, Hung Yen Province, Vietnam

Executives
Chairman & CEO
President
Director
Director
Director
Director
Full-Time Corporate Auditor
Full-time Corporate Auditor
Full-time Corporate Auditor
AuditorCorporate Executive Officer
Corporate Executive Officer
Corporate Executive Officer
Corporate Executive Officer

Toshio Shinmura
Masahiro Nakajima
Kouki Shirai
Kenichi Kitamura
Kazuhiro Tsuchiya
Kazuｍi Kawaguchi
Eiji Asada
Atsushi Sasaki
Hisao Hayakawa
Kazuyoshi Matsumura
Toshihiko Iwamuro
Hiroko Urano
Naohisa Sakamoto
Shinichi Kanaoka

M O R I TA R E P O R T 2 0 1 0

14

Shareholder’s MemoIntroduction to the Share
April 1st to March 31st

Business Year

Annual General Meeting of Shareholders

June

Reference date

Annual General Meeting of Shareholders – March 31stYear-end Dividend – March 31st
Interim Dividend – September 30th
Other dates published in advance as necessary

Notification Method

Posted on company website
http://www.morita119.com/kohkoku/index.html

Administrator of the shareholders list
The Sumitomo Trust & Banking Co., Ltd.
4-5-33, Kitahama, Chuo-ku, Osaka-shi
Place of clerical office for the above
Stock Transfer Agency Department, The Sumitomo Trust & Banking Co., Ltd.
4-5-33, Kitahama, Chuo-ku, Osaka-shi（Postal Address）

Stock Transfer Agency Department, The Sumitomo Trust & Banking Co., Ltd.
1-10 Nikko-cho, Fuchu-shi, Tokyo 183-8701（Telephone Inquiries）+81-120-176-417（Internet Website URL）

http://www.sumitomotrust.co.jp/STA/retail/service/daiko/index.html
Tokyo Stock Exchange, Osaka Securities Exchange

Stock Listing[Special Account]

For shareholders who did not use JASDEC (Japan Securities Depository
Center, Inc.) before the share certificates were computerized, an account(special account) has been opened above Sumitomo Trust & banking Co.,
Ltd., the shareholder register administrator. For details regarding thespecial account, notification of address change, and so on, please inquirewith the above contact.

[Notification of address change and inquiries]
For shareholders who have an account at a securities firm, please contact
the firm where your account is established for notification of addresschange and so on. For shareholders who do not have an account at asecurities firm, please inquire with the above contact.

Osaka Head Office
5-5-20 Shoji-Higashi, Ikuno-ku, Osaka-shi, Osaka 544-8585, Tel. +81-6-6756-0100
Tokyo Head Office
3-25-31 Nishishinbashi, Minato-ku, Tokyo 105-0003, Tel. +81-3-5777-5777

http://www.morita119.com
Printed using
environmentallyfriendly soy ink.