To Shareholders and Investors

Business Report for the 86th Term

From April 1, 2018 to March 31, 2019
Securities Identification Code: 6455

T o p Me ssag e

Greeting

Since our company was founded in 1907, for over the years wehave shared the path with the history of Japan’s firefighting
technology development as a top manufacturer of firefighting vehicles. We would like to express our deepest
appreciation for the warm support and patronage ofshareholders and all those concerned.
Morita Group has the slogan "Protecting Human Life andMother Earth" and deploys the four businesses of Fire FightingVehicles, Fire Protection Equipment & Systems, Recycling
Machines and Environmental Conservation Vehicles whileremaining committed to its missions of protecting human
lives and property and irreplaceable nature of the earth and,for that, keeping on trying to make greater innovation andcreating new value.

We have recently established our new Mid-term Plan<<Morita Reborn 2025>>, which sets its final fiscal year as
fiscal 2025. In this plan, we set our basic policies as "increasing
profitability of existing business", "cultivating and expanding
overseas businesses and new businesses", "enhancing basic
research capabilities and new product development","developing innovative human resource" 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 willcontinue working on becoming a company group widely
trusted by society, so we sincerely wish for your continuoussupport.

Masahiro Nakajima, Chairman and CEO
Kazumi Ogata, President

Overview of 86th TermNet sales

Operating income

Ordinary income

Net income attributable toowners of parent company¥91,524 million¥9,483 million¥10,104 million¥6,391 million

Year on year

Up 7.0%Year on year

Up 11.8%

During this consolidated fiscal year under review, although
our nation’s economy remained on a gradual recovery trendwith corporate profit and the work environment improving,
due to the trade conflict between the US and China, the slowdown of the Chinese economy and other reasons, the futureof our nation’s economy is still unpredictable.
In such a business environment, our group had been working
on various measures to improve our enterprise value, as it was
the final fiscal year of our 3-year Mid-term Plan, "MoritaAdvance Plan 1000".
In such situation, our Fire Fighting Vehicles Business registeredYear on year

Up 11.9%

Year on year

Up 11.3%

a particularly good performance. As a result, during theconsolidated fiscal year under review, our net sales increasedby ¥6,021 million from the previous year to ¥91,524 million(+7%), operating income increased by ¥999 million to ¥9,483
million (+11.8%), ordinary income increased by ¥1,074 million
to ¥10,104 million (+11.9%), and net income attributable toowners of the parent company increased by ¥650 million to¥6,391 million (+11.3%). Among the above, our net sales andnet income attributable to owners of the parent company
were record highs.

Morita News
MVF21 Multi-Purpose Firefighting Vehicle won"iF DESIGN AWARD 2019"

Fire FightingVehicles Business

Our MVF21 Multi-Purpose Firefighting Vehicle with a 21m Aerial Platform
won "iF DESIGN AWARD" in the "Product category" of "iF DESIGNAWARD", a world-famous German design award.
MVF21 is equipped with a flexible 21m aerial platform and basket thatcan bear a load of 4,000N. The MVF21 was developed through technicalcooperation between MORITA Corporation and BRONTO SKYLIFT OY AB,
our consolidated subsidiary in Finland. This vehicle can dramatically
expand the possibility of firefighting operations, with the uniquefunction of rescuing wheelchair-bound people, and a design that is
made to improve the user-friendliness for firefighters in order to enablesafe firefighting operations.
Multi-Purpose Firefighting Vehicle with a 21m Aerial Platform, MVF21

Sales of "Miracle Light",
a CD-I firefighting vehicle under 3.5 tons started
Due to the enforcement of the revised road traffic act in March 2017, theGross Vehicle Weight (GVW) of firefighting vehicles which can be driven
by regular automobile driver's license decreased from 5 tons to less than
3.5 tons.
About 49.5%* of total personnel who undertake firefighting and otherdisaster prevention are volunteer fire corps members. Many of thevolunteer fire corps members have regular work and go to the scene ofa fire or other disaster from their home or workplace. Most of them have
only regular automobile driver's license. This means that persons whoearn regular automobile driver's license after the enforcement of therevised road traffic act will not be able to drive firefighting vehicles thathave already been deployed. In order to tackle this issue, MORITA started
to develop firefighting vehicles under GVW 3.5-ton, completeddevelopment in fiscal 2018, and received orders for more than 30 units
from the Ministry of Internal Affairs and Communication and others.
MORITA will continue providing fire trucks which can be used easily andwith confidence by people involved in firefighting.

Fire FightingVehicles Business"Miracle Light" CD-I firefighting vehicle under 3.5 tons
(can be driven with class 1 driver's license)*Fiscal 2017 results from the website of the Fire and Disaster Management Agency

Started developing the bubble shower "KINUAMI"
utilizing crowdfunding

Fire Protection Equipment &Systems Business

MORITA MIYATA CORPORATION started to develop the bubble shower"KINUAMI", a shower made with a new concept that provides a newbathing experience by creating highly condensed bubbles, incooperation with NITTO CERA Corporation, a company that sells
housing equipment, by utilizing crowdfunding provided by Makuake,Inc.
"KINUAMI" is a "body treatment" shower that richly covers your bodywith "bubbles of KINUAMI," which are automatically created in a shower
head that contains a natural silk ingredient, like a white cocoon, andtreats your skin after body-washing. We succeeded in applying MORITA's
bubble creation technology developed for fire trucks to the shower
head, based on the experience NITTO CERA has for bathing. Bubbles
created by this shower head are so fine and thick that it is impossible forhuman hands to create the same things. We will provide innovative
cosmetic products which can be developed only from collaboration
between different industries.
Product design with a streamline shape expressing softness of bubbles

Cover page

Picture drawn by Kazuto Nagaike (4th grader in Hiratsuka City, Kanagawa Prefecture *at the time of application),winner of the first prize in the 14th "Future fire truck" idea contest for elementary students nationwide.

O

Financial Highlights (Consolidated)
Ordinary income

Net income attributable toowners of parent company

Unit: Millions of yen

Unit: Millions of yen

Unit: Millions of yen

85,06385,502

91,524
10,12968,574

10,104
6,040

9,030

8,123

6,391
5,741

4,537

2016.32017.32018.32019.32016.32017.32018.32019.32016.32017.32018.3Return on equity

Shareholders’ equity ratio

Interest-bearing liabilities

Unit: %

Unit: %

Unit: Millions of yen

56.8

11.3

9.8

10.0

51.2

52.9

13,682

2019.3

13,735

54.0

11,577

9,889

9.1

2016.32017.32018.32019.32016.32017.32018.32019.32016.32017.32018.32019.3

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

Net salesYear on year

Year on year

21,626 million yen Up 1.7%

54,626 million yen Up 9.7%

Operating income Year on year

Operating income Year on year

2,117 million yen

Since sales of fire extinguisher
and pack aged automatic fire
extinguishing system "SPRINEX"
performed generally firm, bothsales and income increased.

Environmental Conservation Vehicles BusinessNet sales

6,255 million yen

Up 0.7%

Year on year

Since both domestic andoverseas sales showed excellent
growth, sales and income
increased.

23.6%
11.5%

Up 13.2%

Net sales
composition

5.1%

59.7%
Recycling Machines BusinessNet sales

Year on year
Up 14.1%

10,561 million yen Up 2.2%

4,709 million yen

Operating income Year on year

Operating income Year on year

781 million yen

Up 27.7%

Due to the normalization of delay
in production line caused byrelocation of the factory in theprevious year, both sales andincome increased.

381 million yen

Up 98.8%

Due to the steady increase in neworders and sales of products, bothsales and income increased.

peration Highlights

Net sales

Company Profile and Stock Information
Major Group Companies
Company Name

MORITA HOLDINGS CORPORATION

Inauguration ofBusiness

April 23, 1907

Establishment

July 23, 1932

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, Tokyo

Type of BusinessControl/management of business activities ofgroup companies, and being entrusted withindirect management operations

MORITA CORPORATION

Executives

1-5 Techno Park, Sanda-shi, Hyogo,669-1339, Japan
Development, manufacturing and sales of laddertrucks, fire trucks, and specialty vehicles

TOC ARIAKE West Tower 19F, 3-5-7 Ariake,
Koto-ku, Tokyo, 135-0063, Japan

MORITA MIYATACORPORATION

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

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

Chairman & CEO

Masahiro Nakajima

President

Kazumi Ogata

Director and Managing Executive Officer

Kunio Morimoto

Director and Executive Officer

Shinichi KanaokaDirectorMitsuo Isoda

Director

Takao Kawanishi

Full-Time Corporate Auditor

Eiji Asada

Full-Time Corporate Auditor

Atsushi Miyazaki

Auditor

Masaru OtaAuditor

Shozo NishimuraManaging Executive Officer

Shinya Murai

Executive Officer

Naohisa Sakamoto

Executive Officer

Mitsuru Ito

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

MORITA ECONOSCORPORATION

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 fire trucks
and of rescue equipment. Development,manufacturing and sales of electronic appliedmachinery and information processing machinery

BRONTO SKYLIFT OY AB

Teerivuorenkatu 28, FI-33300 Tampere,Finland
Development, manufacturing and sales ofcombined platform ladders and aerial platforms

Distribution of Shares by Type of Shareholder
As of March 31, 2019

Information about the StockBusiness Year

Treasury shares 3.6%

April 1 to March 31

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 ofPublic Notice

Posted as electronic public notice on company website
https://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 forthe 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

Securities companies 0.4%

Other Japanesecorporations
8.4%
Non-Japanese
corporations
16.0%

Total

46,918,542 shares

Individuals/others
28.3%

Financial institutions
43.4%

Top 10 Shareholders

As of March 31, 2019

Name

No. of shares (thousand)

The Dai-ichi Life Insurance Company, Limited

3,265
2,175

(Telephone Inquiries)+81-3-3323-8222

Morita Trading-Partner Shareholding Association(Internet Website URL)

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

Mizuho Bank, Ltd.

2,087

Stock Listing

Tokyo Stock Exchange

2,082

Number of shares per unit

100 shares

Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.

2,048Sumitomo Mitsui Banking Corporation

2,007

Japan Trustee Services Bank, Ltd. (Trust account)

2,001

AIR WATER INC.

1,730

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

1,501[Special Account]
For shareholders who did not use JASDEC (Japan Securities Depository Center, Inc.) before theshare certificates were computerized, an account (a special account) has been opened with
Sumitomo Mitsui Trust Bank, Limited, the administrator of the shareholders list. For details
regarding the special account, notification of address change, and so on, please contact thetelephone 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 youraccount was established for notification of address change and so on. For shareholders who
do not have an account at a securities firm, please contact the telephone inquiry number
listed above.

JP MORGAN CHASE BANK 385632
Notes:

Osaka Head Office
3-6-1 Dosho-machi, Chuo-ku, Osaka-shi, Osaka, 541-0045
Tel. +81-6-6208-1907

Tokyo Head Office
5-36-7 Shiba, Minato-ku, Tokyo, 108-0014
Tel. +81-3-6400-3480
https://www.morita119.com888

1. Number of shares held is rounded down to the nearest thousand shares.
2. The Company holds treasury shares numbering 1,682 thousand shares.