Securities
Identification
Code: 6455

To Shareholders and Investors

Business Report

Business Reportfor the87 TermthFrom April 1, 2019
to March 31, 2020

Top Message

Greeting

Over the years since our company was founded in 1907, wehave shared the path with the history of Japan’s firefighting
technology development as a top manufacturer of fire fighting
vehicles. We would like to express our deepest appreciation for
the warm support and patronage of shareholders and all thoseconcerned.
The Morita Group has the slogan “Protecting Human Life andMother Earth” and develops our four businesses of Fire FightingVehicles, Fire Protection Equipment & Systems, Recycling
Machines and Environmental Conservation Vehicles whileremaining committed to its mission of protecting human lives
and property and the irreplaceable nature on Earth and, to that
end, we continue to try to come up with greater innovations
and create new values

In April last year, we established our new Mid-term Plan “MoritaReborn 2025”, which sets fiscal 2025 as its final fiscal year. In thisplan, we set our basic policies as “increasing the profitability ofour existing business”, “cultivating and expanding overseasbusinesses and new businesses”, “enhancing basic researchcapabilities and new product development”, “developinginnovative human resources” and “promoting CSR activities”. We
will positively implement these policies in order to become a
global company providing comprehensive disaster prevention
solutions. With all our energy, we will continue working on
becoming a company group widely trusted by society, so wewould ask for your continued support.

Masahiro Nakajima, Chairman and CEO
Kazumi Ogata, President

Overview of 87th TermNet sales¥86,922

millionOperating income

Ordinary income

Profit attributable toowners of parent¥8,855¥9,326¥6,971

millionmillionYear on year

Year on year

Year on year

Year on year

Down

Down

Down

Up5.0%

6.6%

During this consolidated fiscal year under review, although ournation’s economy remained on a gradual recovery trend withcorporate profit and the work environment improving, due toglobal economic stagnation and social unrest owing to thespread of the novel coronavirus as well as the prolonged trade
conflict between the US and China, the future of our nation’s
economy is increasingly unpredictable.
In such a business environment, our group had been working
on various measures to improve our enterprise value, as it was
the first fiscal year of the Mid-term Plan “Morita Reborn 2025”.

7.7%

million

9.1%

With respect to our business results of the consolidated fiscal
year under review, because our Fire Fighting Vehicles and Fire
Protection Equipment & Systems businesses were sluggish, ournet sales decreased by ¥4,601 million from the previous year to¥86,922 million (-5.0%), operating income decreased by ¥628
million to ¥8,855 million (-6.6%), ordinary income decreased by¥778 million to ¥9,326 million (-7.7%). However, due to the saleof fixed assets (the former Tokyo head office), the profit
attributable to owners of parent increased by ¥580 million to¥6,971 million (+9.1%).

Morita News
Fire FightingVehicles BusinessStarted to provide firefighting vehicles’ “Watching Service”
using IoT (Internet of Things) technology

We collected information on firefighting vehicles such as fire engines and ladder trucks through the Internet and have developed analysis
technology with artificial intelligence (AI). In April 2020, we started to provide a “Watching Service” which prevents failures and provides
guidance for repair by remotely diagnosing the operating status of vehicles and another service that can be used to review operations byrecording traveling routes.
Information of the outside of the scene of a fire(Basket camera and drone)
By installing a communication device in a firefighting vehicle, forexample in a ladder truck, this watching service enables us tocollect information on the inclination and speed of the ladder, andoperating time, analyze the collected data with AI, and find signsof defects in the firefighting vehicle so that appropriate actions
such as repairs can be taken swiftly.
We will further expand services according to users’ demands andadvance the development of a fire scene visualization system incombination with a technology to monitor the conditions of firefighters so that we can contribute to the safety and security of
firefighters during firefighting operations.

Information of firefighting vehicles

Information of firefighters(e-monitor)(Portable alarm system)“Morita IoT System”

The high-performance aluminum stored-pressure powder
fire extinguisher “ALTESIMO Plus MKA10B” was released

Fire Protection Equipment& Systems Business

MORITA MIYATA CORPORATION has released a high-performance fire extinguisher“ALTESIMO Plus MKA10B” which boasts excellent design and drastically improved
fire extinguishing capability that enables you to extinguish a fire more quickly
and reliably.
Compared to the conventional size 10 fire extinguisher (MEA10B), this new fire
extinguisher has about a 1.3-fold higher fire extinguishing capability for Class A(ordinary fires) and about a 1.7-fold higher fire extinguishing capability for ClassB (oil fires), enabling you to extinguish a fire in about half the time.
“ALTESIMO Plus” is not only the lightest in the industry as with the conventional
size 10 fire extinguisher with an improved fire extinguishing capability; it has
also adopted a label written in 4 languages - Japanese, English, Chinese, andKorean to respond to internationalization. We will keep providing further safety
and security through adding higher-performance fire extinguishers to ourproduct lineup which are easy to use for anyone.

Completed the model changes of the garbage truck series
Press-type garbage truck(Press Master)Rotary-type garbage truck(Pack Master)High-performance aluminum stored-pressure powder
fire extinguisher “ALTESIMO Plus MKA10B”

Environmental Conservation
Vehicles Business

MORITA ECONOS CORPORATION has finally completed themodel changes of the garbage truck series for the small andmedium type of each of the rotary-type garbage truck (PackMaster) and press-type garbage truck (Press Master), whichwere launched with the concept “Safer and Easier to Use!”
Aiming at more efficient waste collection, alleviation of waste
collectors’ workloads, and improvement of safety, the newmodels are designed to have lighting and display units thathave been put together on the company’s unique highmounted rear panel to achieve both visibility and safety.
Garbage trucks run all over town and routinely collect garbage
in order to keep our daily lives clean. We hope that waste
collectors and people living in the town will feel that ourgarbage trucks are safe, powerful, and stylish, and give a senseof security and trust.

O

Financial Highlights (Consolidated)
Ordinary income

Profit attributable toowners of parent

Unit: Millions of yen

Unit: Millions of yen

Unit: Millions of yen

85,06385,502

91,52486,922

10,12910,1049,030

2017.32018.32019.32020.32017.32018.32019.3Return on equity (ROE)

Shareholders’ equity ratio

Unit: %

Unit: %

9,326

6,040

2020.32017.3

10.0

10.2

52.9

5,741

2018.32019.32020.3

Unit: Millions of yen

13,735

56.8

9.8

6,971

Interest-bearing liabilities
60.6

11.3

6,391

54.0

11,577
9,889

7,948

2017.32018.32019.32020.32017.32018.32019.32020.32017.32018.32019.32020.3

Performance by Segment
Fire Protection Equipment & Systems BusinessFire Fighting Vehicles BusinessNet sales

Net salesYear on year

Year on year

19,774 million yen Down 8.6%

51,014 million yen Down 6.6%

Operating income Year on year

Operating income Year on year

Down 18.8%

Down 8.6%

1,718 million yen

Since sales of the packaged
automatic fire extinguishingsystem “SPRINEX” were sluggish,sales and income decreased.

Environmental Conservation
Vehicles BusinessNet salesYear on year

5,715 million yen

Mainly due to a decrease indomestic sales, sales and income
decreased.

22.8%
12.4%

Net sales
composition

6.2%

58.7%
Recycling Machines BusinessNet salesYear on year
Up 14.1%

10,756 million yen Up 1.9%

5,375 million yen

Operating income Year on year

Operating income Year on year

881 million yen

Up 12.8%

As a result of a steady increase in
the sales of products, sales andincome increased.

508 million yen

Up 33.3%

As a result of a steady increase in
the sales of products, sales andincome increased.

peration Highlights

Net sales

Company Profile and Stock Information
Major Group Companies
Company Name

MORITA HOLDINGS CORPORATIONFoundedApril 23, 1907

Established

July 23, 1932

Paid-in Capital

4,746 million yen

Osaka Head Office

3-6-1 Dosho-machi, Chuo-ku, Osaka-shi, Osaka

Tokyo Head Office

5-36-7 Shiba, Minato-ku, TokyoBusinessControl/management of business activities ofgroup companies, and being entrusted withindirect management operations

1-5 Techno Park, Sanda-shi, Hyogo,
MORITA CORPORATION 669-1339, Japan

Development, manufacturing and sales ofladder trucks, fire trucks, and specialty vehicles

MORITA MIYATACORPORATION

Development, manufacturing and sales of fire
extinguishing-related equipment, mainly offire extinguishers, firefighting equipment andother fire protection equipment

1530 Konoda-cho, Funabashi-shi,Chiba, 274-0081, Japan
MORITAENVIRONMENTAL TECH Design and construction of waste recycling
facilities and other waste disposal facilities.
CORPORATION
Development, manufacturing and sales oflarge hydraulic equipment

Executives
Chairman & CEO

Masahiro Nakajima

President

Kazumi Ogata

MORITA ECONOSCORPORATION

Director and Managing Executive Officer Kunio Morimoto
Director and Managing Executive Officer Shinichi Kanaoka
Director

Mitsuo Isoda

Director

Takao Kawanishi

Director

Masaki Hojo

Full-Time Corporate Auditor

Eiji Asada

Full-Time Corporate AuditorAtsushi Miyazaki

Auditor

Masaru Ota

AuditorShozo NishimuraManaging Executive Officer

Shinya Murai

Executive Officer

Naohisa Sakamoto

Executive Officer

Mitsuru Ito

Information about the Stock
Fiscal Year

3-5-7 Ariake, Koto-ku, Tokyo, 135-0063,
Japan

April 1 to March 31

28 Techno Park, Sanda-shi, Hyogo,669-1339, Japan

Development, manufacturing and sales ofenvironmental conservation vehicles such as
sanitation vehicles and garbage trucks

32 Techno Park, Sanda-shi, Hyogo,669-1339, Japan
MORITA TECHNOSCORPORATION

Aftercare service and maintenance of firetrucks and of rescue equipment.
Development, manufacturing and sales ofelectronic applied machinery and information
processing machinery

Teerivuorenkatu 28, FI-33300 Tampere,
BRONTO SKYLIFT OY AB Finland

Development, manufacturing and sales ofcombined platform ladders and aerial platforms

Breakdown of Shares by Type of Shareholder
As of March 31, 2020
Securities companies 0.2%

Treasury shares 3.4%
Other Japanese
corporations
8.1%
Non-Japanese
corporations
15.6%

Total

46,918,542
sharesIndividuals/others
28.3%

Financial institutions
44.4%

Major Shareholders (Top10)

As of March 31, 2020

Annual General Meeting ofJune
Shareholders
Reference Dates

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

Method of Public Notice

Posted as electronic public notice on company website
https://www.morita119.com/kohkoku/index.html

Shareholder Registry
Administrator

Sumitomo Mitsui Trust Bank, Limited
1-4-1 Marunouchi, Chiyoda-ku, Tokyo

Handling Office ofShareholder Registry
Administrator

Stock Transfer Agency Department, Sumitomo Mitsui
Trust Bank, Limited
4-5-33 Kitahama, Chuo-ku, Osaka-shi, Osaka(Postal Address)

Stock Transfer Agency Department, Sumitomo Mitsui
Trust Bank, Limited
2-8-4 Izumi, Suginami-ku, Tokyo, 168-0063(Telephone Inquiries)+81-3-3323-8222(Internet Website URL)

https://www.smtb.jp/personal/agency/index.html

Stock Exchange Listing

Tokyo Stock Exchange

Number of shares per unit

Name

No. of shares

The Dai-ichi Life Insurance Company, Limited

3,265

Morita Trading-Partner Shareholding Association

2,231

Japan Trustee Services Bank, Ltd. (Trust account)

2,115

Mizuho Bank, Ltd.

2,087

Sumitomo Mitsui Trust Bank, Limited

2,082

MUFG Bank, Ltd.

2,048

Sumitomo Mitsui Banking Corporation

2,007

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

1,973

AIR WATER INC.

1,730

NORTHERN TRUST CO. (AVFC) RE HCR00
Notes:

100 shares

3-6-1 Dosho-machi, Chuo-ku, Osaka-shi, Osaka, 541-0045

5-36-7 Shiba, Minato-ku, Tokyo, 108-0014

Tel. +81-3-6400-3480
https://www.morita119.com

908

1. Number of shares held is rounded down to the nearest thousand shares.
2. The Company holds treasury shares numbering 1,589 thousand shares.

Osaka Head OfficeTel. +81-6-6208-1907
Tokyo Head Office(thousand)