M O R I TA R E P O R T 2 0 1 4

To Shareholders and Investors
I n t e r i m B u s i n e s s R e p o r t f o r t h e 8 2 n d Te r m
From April 1, 2014 to September 30, 2014

Securities Identification Code: 6455

Morita Topics
Development of the New Fire Fighting
Vehicle, “Miracle N7”
Since the Great East Japan
Earthquake, we at Morita
have felt that there is aneed for fire fighting
equipment with thecapability to respond tolarge-scale earthquakes.
At Morita, a company
engaged in fire fighting
vehicle manufacturingand sales, we came up
Miracle N7
with a solution to thisproblem by developingthe “Nitrogen Enriched Air (NEA) System.” This fire fighting
equipment utilizes separation membranes to remove oxygenfrom air and create a gas with a higher concentration ofnitrogen, which is then discharged as a fire-extinguishing
agent. We have shipped the first “Miracle N7,” a fire fighting
vehicle equipped with this system, to Japan Nuclear Fuel
Limited.
The NEA System takes air (78% nitrogen, 21% oxygen, 1%
other gases) and removes oxygen, continuously discharging
the resulting gas with a higher nitrogen concentration. This
maintains an environment with a low oxygen concentration at
disaster sites, exhibiting effectiveness for fire extinguishing,
prevention of fire spread, and prevention of fire outbreak.
Additionally, by controlling the concentration of nitrogenenriched air, the system can maintain an environment which
has almost harmless on the human body in short exposure
times and an oxygen concentration that makes combustion
impossible (12.5%). This system can be utilized to create nonflammable spaces not just in nuclear power facilities, but alsoin oil storage bases and places where it is desirable to avoid
water damage, such as museums, art galleries, valuable
cultural properties and data centers. In the future, we plan onproviding the system to a wide variety of locations.

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M O R I TA R E P O R T 2 0 1 4

Receiving Good Design Awards (2014) for Our
Fire Fighting Vehicle and Garbage Collector
In 2014, the “MVF Multi-Purpose Fire Fighting Vehicle with
13m Aerial Platform” and the “PackMaster 7-Series Rotary
Extrusion Garbage Collector” designed by the Morita Groupboth received Good Design Awards, which are organized by theJapan Institute of Design Promotion.
The “MVF Multi-Purpose
Fire Fighting Vehicle with
13m Aerial Platform” is amedium-sized fire truck
suited for rescue activities
in multi-residence buildings
and crowded cities. It
was praised for being thefirst truck of its size inJapan to be equippedwith a boom with abasket and a pump with a MVF Multi-Purpose Fire Fighting Vehicle with 13m Aerial Platform
water tank and CAFS.
The truck also received praise for its design that takes into
account the conditions of fires in Japanese cities and therequests of fire stations to enable maximum functionality while
being as compact as possible. The design of this truck makes
use of our development mentality of wanting to save as many
lives as possible. Through this design, we were able to create acompact fire truck that allows for fire fighting and rescue
activities that are both swift and safe.
The “Pack Master 7-Series
Rotary Extrusion Garbage
Collector” is a garbage
collector that features amaximized carrying
capacity while still
remaining compact. It
received praise for being
a cutting-edge working
vehicle at the current Pack Master 7-Series Rotary Extrusion Garbage Collector
stage that responds to the numerous issues of worksites
encountered up to this point. While raising the level ofpracticality and safety - two requirements of a work vehicle - totheir limits, we created an exterior design of uncompromising
power, cleanliness, and trustworthiness fitting of a work vehicle- something that vehicles up until now had not accomplishedadequately.
In the future, we shall continue to value the principles of theGood Design Awards - which indicate the next standard - andcontinue our creative endeavors, progressing one step at a timesurely and steadily while adding daily improvements.
M O R I TA R E P O R T 2 0 1 402

Development of “calena,”Lumbar Support
Innerwear for Women: Just wearing it reduces
strain on the lumbar area
Our company has now commenced sales of “calena,” thelumbar support innerwear for women that just wearing it
reduces strain on the lumbar area. This product was jointly
developed through three-party cooperation with Nobutoshi
Yamazaki, Professor Emertius and Doctor of Engineering atKeio University and GUNZE LIMITED.
Our company has offered “rakunie,” the lumbar support wear,
since October 2012. In this product, we had created lumbar
support functionality that required no power, utilizing theelastic force of the product’s materials instead. Using thisconcept as a base, we developed a new product that matched
the needs of women wanting to perform daily work more
comfortably.
Working women, including caregivers and nurses, are faced
daily with numerous
scenarios in which theymust utilize a bending
forward or in a half-bent
posture. Even if one isn’t
carrying a heavy load, suchpostures create strain on
the lumbar. When one is insuch strain-inducing bending
forward or in a half-bent
posture, “calena” uses
body transitions to bringout the powerful stretching
force of its elastic fabric,
supporting the muscles ofthe lumbar. Furthermore, as
women’s innerwear, thisproduct doesn’t just offer
support function, but alsofits comfortably and makes the wearer’s figure look nice; it is
support wear that reduces strain on your lumbar while being
worn in the place of standard innerwear.
This design, too, is an endeavor based on our corporatephilosophy of creating “a secure, comfortable and prosperoussociety”
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M O R I TA R E P O R T 2 0 1 4

Top Message
We would first like to extend our deep appreciation for yourcontinued support for the Morita Group.
For our 82nd term midterm report, we would like to provide
you with a business overview report.

Business Overview
During the first half of FY2014, Japan’s economy has seen
improvement in corporate performance and the employment
situation due to government economic policies and the Bankof Japan’s financial policies. The economy is showing signs ofslow recovery, but with concerns about the effects of theincrease in consumption tax and rising material prices, it still
remains in a state of future uncertainty.
In such an environment, the Morita Group has endeavored to
implement proactive business development and further cost
reduction while also developing new products.
With regards to the first half of FY2014, performance, net
sales fell by ¥572 million compared to the same period in theprevious year to ¥23,400 million (-2.4%); operating income
decreased by ¥21 million compared to the same period in theprevious year to ¥1,006 million (-2.1%); ordinary profit
increased by ¥96 million compared to the same period in theprevious year to ¥1,180 million (+8.9%); and net income
increased by ¥273 million compared to the same period in theprevious year to ¥792 million (+52.6%).
Morita Group performance by segment is as follows. The FireFighting Vehicles Business showed favorable sales thanks toproactive operating activities, with net sales of ¥8,813 million(+1.9% over the same period in the previous year). Our Fire
Protection Equipment & Systems Business showed steadys a l e s o f “ S P R I N E X ,” t h e p a c k a g e d a u t o m a t i c fi r e
extinguishing equipment, with net sales of ¥7,735 million(+5.7% over the same period in the previous year). The
Recycling Machines Business had product, parts, andmaintenance sales that progressed largely as expected, with netsales of ¥2,428 million (+8.8% over the same period in theprevious year). The Environmental Conservation Vehicles
Business had favorable figures for orders, but an overemphasisof product shipments in the third quarter and later led to net
M O R I TA R E P O R T 2 0 1 404

sales of ¥4,423 million (-3.8% compared to the same period in
the previous year). This concludes the business overview.

Future Outlook
As reported above, the Morita Group’s first half of FY2014
performance progressed steadily, thanks to each businesssegment proceeding largely as planned. It seems likely that theJapanese economy will continue to be unpredictable, but ourgroup will continue its proactive operating activities while also
promoting cost reductions and increased productivity to secureprofits.
In conclusion, we would like to take this opportunity to ask
our shareholders for continued support and encouragement.
November 2014

Masahiro Nakajima
President

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M O R I TA R E P O R T 2 0 1 4

Consolidated Summary
Consolidated Balance Sheets

Morita Holdings Corporation and Consolidated Subsidiaries
Millions of yen

FY2013First half

FY2014First half

FY2013Full Year

AssetsCurrent assets¥ 36,349 ¥ 35,359 ¥ 42,081

Property, plant and equipment

29,99730,916

Intangible assets

1,407

320

1,571

Investments and other assets

9,879

13,685

11,499Total assets

30,402¥ 77,632 ¥ 80,281 ¥ 85,553

Liabilities
Current liabilities¥ 25,467 ¥ 24,281 ¥ 28,059

Long-term liabilities

12,181

10,687

13,382

Total liabilities

37,64834,96841,441

Common stock

4,746

4,746

4,746

Additional paid-in capital

3,743

4,331

4,331

Retained earnings

31,71935,04834,387

Net assets
Shareholders’ equity(1,063)

(242)

(235)

39,14543,88343,229

1,210

2,986

1,816

2(8)

4

Unrealized gains (losses) on revaluation of land

(1,774)(1,804)(1,804)Foreign currency translation adjustments

130172287

Remeasurements of defined benefit plans—(429)(557)

Total accumulated other comprehensive income

(430)

915

(254)

Treasury stock, at cost
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized gains on available-for-sale securities
Deferred gains (losses) on hedges

Minority interests in consolidated subsidiaries
Total net assets
Total liabilities and net assets

1,268

512

1,135

39,98345,312

44,111¥ 77,632 ¥ 80,281 ¥ 85,553(Note) Figures less than 1 million yen are rounded down to the nearest 1 million yen.

M O R I TA R E P O R T 2 0 1 406

Consolidated Statements of Income

Morita Holdings Corporation and Consolidated Subsidiaries
Millions of yen

FY2013First half

Net sales

FY2014First half

FY2013Full Year¥ 23,972 ¥ 23,400 ¥ 71,666

Cost of sales
Gross profit

17,441
6,531

17,0886,311

53,36818,297

Selling, general and administrative expenses
Operating income
Other income
Other expenses
Income before income taxes
Income taxes
Current
Deferred

5,503
1,028
239
342
925

5,305
1,006
318
171
1,15311,603
6,694
716
1,683
5,726

485
—485547(83)
464

2,781(463)2,318Minority interests in earnings of consolidated subsidiaries
Net income(79)¥ 519(102)
¥ 792

(119)
¥ 3,527(Note) Figures less than 1 million yen are rounded down to the nearest 1 million yen.

Consolidated Statements of Cash Flows

Morita Holdings Corporation and Consolidated Subsidiaries
Millions of yen

FY2013First half

FY2014First half

FY2013Full Year

Cash flows from operating activities(¥ 2,394) (¥ 2,472)
Cash flows from investing activities(3,878)(2,340)Cash flows from financing activities
3,029
(201)
Effect of exchange rate change on cash and cash equivalents
69(27)Net increase (decrease) in cash and cash equivalents(3,174)(5,042)
Cash and cash equivalents at beginning of year
8,748
9,525

¥ 4,310(5,565)
1,939
90
776
8,748

Increase (decrease) in cash and cash equivalents
resulting from change of scope of consolidation

—

(254)

—

Cash and cash equivalents at end of period (year)¥ 5,574¥ 4,227¥ 9,525(Note) Figures less than 1 million yen are rounded down to the nearest 1 million yen.

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M O R I TA R E P O R T 2 0 1 4

Company Profile(As of September, 30, 2014)

Overview
Company Name

MORITA HOLDINGS CORPORATION

Inauguration of Business
Establishment
CapitalApril 23, 1907

Ju l y 23, 1932

¥4,746 mil.

Osaka Head Office

3-6-1 Dosho-machi, Chuo-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 being entrustedwith indirect management operations

Group Companies
MORITA
CORPORATION

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

1-1-1 Shimomachiya, Chigasaki-shi, Kanagawa,
253-8588, Japan

Development, manufacturing and sales of ladder trucks, firetrucks and other types of fire trucks and specialty vehicles

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

MORITA BOHSAI TECH CORPORATION and MIYATA INDUSTRY CO.,LTD. have merged as of July 1, 2014.

MORITAENVIRONMENTALTECHCORPORATION

1530 Konoda-cho, Funabashi-shi, Chiba,274-0081, Japan

MORITAECONOSCORPORATION

1-48 Jinmu-cho, Yao-shi, Osaka, 581-0067, Japan

MORITATECHNOSCORPORATION

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

Design and construction of waste recycling facilities andother waste disposal facilities. Development,
manufacturing and sales of large hydraulic equipment
Development, manufacturing and sales of environmental
conservation vehicles such as sanitation vehicles andgarbage trucks

Aftercare service and maintenance of fire trucks and ofequipment and materials for lifesaving. Development,
manufacturing and sales of electronic applied machineryand information processing machinery

M O R I TA R E P O R T 2 0 1 408

ALUVO
1479-1 Kamikanzo, Iwata-shi, Shizuoka,
CORPORATION
438-0115, JapanKANSAI BODY WORKS 2-3 Techno Park, Sanda-shi, Hyogo,
CORPORATION
669-1339, Japan
MORITA U.G.
Shiba 256 Square Building 8F, 2-5-6
CORPORATION
Shiba, Minato-ku, Tokyo, 105-0014, Japan
MORITA ENGINEERING
1-48 Jinmu-cho, Yao-shi, Osaka 581CORPORATION
0067, Japan
HOKKAIDO MORITA
13-2-17 Naebo-cho, Higashi-ku, SapporoCORPORATION
shi, Hokkaido, 065-0043, JapanKAGOSHIMA MORITA
12-32, Matsubara-cho, Kagoshima-shi,
PUMP CORPORATION
Kagoshima, 892-0833, Japan
MORITA TOYO
1700-2 Konjinzuka, Sanagu-cho, Iga-shi, Mie, 518CORPORATION
0001, JapanMIYATA CYCLE
Sumitomo Life Insurance Kawasaki Building
CO. LTD.
8F, 11-27 Higashida-cho, Kawasaki-ku,
Kawasaki-shi, Kanagawa, 210-0005, Japan
NANJING CHENGUANG MORITA No.188 Tianyuanzhong Road, Jiangning
Economic & Technical Development Zone,
ENVIRONMENT PROTECTIONSCIENCE & TECHNOLOGY CO., LTD Nanjing, China, 211100SHANGHAI JINDUN
No.1515, Lizheng Road, Shuyuan Town,
SPECIAL VEHICLE
Pudong New Area, Shanghai, China,
EQUIPMENT CO., LTD. 201304
No.8, Xinhua Avenue, Chengdu CrossSICHUAN MORITA FIRE
Straits Technological Industry Park,
SAFETY APPLIANCES
Wenjiang District, China, 611130
LIMITED COMPANY

MORITA HOLDRICH (HONG
KONG) COMPANY LIMITED09

M O R I TA R E P O R T 2 0 1 4

Level 12, 28 Hennessy Road, Wanchai, HongKong

Shareholder’s Memo
Information about the StockBusiness YearApril 1st to March 31stAnnual General Meeting of Shareholders
Reference Dates

June

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

Method of Public Notice

Posted on company website
http://www.morita119.com/kohkoku/index.html
Administrator of the Shareholders List
Sumitomo Mitsui Trust Bank, Limited
1-4-1, Marunouchi, Chiyoda-ku, Tokyo

Place of Clerical Office for the above
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)+81-120-782-031(Internet Website URL)

http://www.smtb.jp/personal/agency/index.html
Stock Listing

Tokyo Stock Exchange

Number of Share Unit

100 shares[Special Account]
For shareholders who did not use JASDEC (Japan Securities Depository
Center, Inc.) before the share certificates were computerized, an account (aspecial account) has been opened with Sumitomo Mitsui Trust Bank,
Limited, the administrator of the shareholders list. For details regarding thespecial account, notification of address change, and so on, please contact
the telephone inquiry number listed above.

[Notification of Address Change and Inquiries]
For shareholders who have an account at a securities firm, please contact
the firm where your account was established for notification of addresschange and so on. For shareholders who do not have an account at asecurities firm, please contact the telephone inquiry number listed above.

M O R I TA R E P O R T 2 0 1 410

Please visit our website
for the latest investor relations information.

http://www.morita119.com

Online Storefor MORITA Original Goods“MORITA NETSHOP”
http://morita119-netshop.com/Osaka Head Office
3-6-1 Dosho-machi, Chuo-ku, Osaka-shi, Osaka, 541-0045, Tel. +81-6-6208-1907
Tokyo Head Office
3-25-31 Nishishinbashi, Minato-ku, Tokyo, 105-0003, Tel. +81-3-5777-5777

http://www.morita119.com