M O R I TA R E P O RT 2 0 1 0To Shareholders and Investors
Interim Business Report for the 78th Term
From April 1, 2010 to September 30, 2010

Securities Identification Code: 6455

Topics"Morita to the World"
Morita successively exhibited at the '7th Fire & Safety Expo Korea 2010'
held in Korea in August 2010, and at the '14th International Fire Protection
Equipment, Technology Conference & Exhibition' held in Beijing, China inOctober 2010. Morita's MLK ladder fire truck and Forest Fire Fighting
Concept Car were introduced at the exhibitions, to disseminate the technicalcapabilities and creativity of Morita to the world. Especially, Morita's Forest
Fire Fighting Concept Car(cover) which was developed to command the firefighting tactics on the front line of a forest fire was exhibited at these events,
following INTERSCHUTZ 2010 the world's largest fire fighting and safety
exhibition which was held in Germany in June 2010, and was introduced on
TV, in newspapers and news web sites as well, and the attention wasconcentrated on the dynamic form and potential functions of the concept
vehicle.

In August 2010, Morita delivered a total of 28 vehicles, 2 Ladder trucks, 24
Chemical Tender trucks and 2 Water Tender trucks to Armenia in West Asia.
A magnificent delivery ceremony was held in Yerevan the capital city where
all the vehicles were delivered, with the participation of the Vice-Prime
Minister of Armenia, the Minister of Emergency Situations and the City
Mayor, and was widely reported on by local television stations. Just after
Morita's fire trucks were delivered, they participated in the large-scale forest
fires in Russia which broke out at the end of July, and excellent fire fighting
activities were achieved as an immediate fighting force.

01

M O R I TA R E P O R T 2 0 1 0■■Challenge of 'Zero' Fire Extinguisher Explosion Incidents

Last year, an incident occurred, where an old cartridge-operated fire
extinguisher exploded at an outdoor parking lot in Osaka city, and a childwas seriously injured which became a large social issue. Explosion incidents
of cartridge-operated fire extinguishers mainly occur when a person tries tooperate, or dispose of a fire extinguisher which has corroded over manyyears without sufficient maintenance.
The Morita Group has been producing very safe and anti-corrosive fireextinguishers for years, while at the same time promoting safe collection andrecycling of old fire extinguishers. However, estimating the magnitude ofhuman injury caused by the explosions of fire extinguishers, or severe
installation environments and improper maintenance which leads toincidents, we believe that it is necessary to spread safe “stored pressure fireextinguishers” with less risk of explosion incidents more than we have until
now. The feature of the stored pressure fire extinguishers is that the internalpressure does not increase even when the container has aged, and isstructured to prevent leakage ofthe pressure out of the container.
The Morita Group announced areinforcement of the production
facility of the stored pressure fire
extinguishers, with the aim oferadicating

fire

extinguisher

explosion incidents.

Stored Pressure Fire Extinguisher

Cartridge-Operated Fire Extinguisher

Fire extinguisher where the pressure
is stored in the container

Fire extinguisher where the pressure
is applied when used for the first time

Lever

Lever
CutterPressure gauge

Container sealingplate
Pressurized gas
cylinderNitrogen gas (N2)0.7 - 0.98 Mpa

Gas induction tube
Hose

Fire extinguishingchemicals

NozzleHose
NozzleDischarge tube

Fire extinguishingchemicals
Discharge tube

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

Renewal of "Working Vehicles" in Cities"EP-2" Eco-Panel Vacuum Truck
Morita Econos developed the "EP-2" Eco-Panel Vacuum Truck which wasdesigned with the idea of attractiveness.

We will sell vehicles whichharmonize with the communities where the exterior of the vacuum truck,such as the cylindrical tank and wound hose are completely covered withstylish panels, which also adheres to operability and maintainability. The
Eco-panel outer covers can also be attached to vehicles currently being used,
not only for newly produced vehicles.
Although the demand for sanitation vehicles (vacuum trucks) has tended todecline due to the increase in the use of flushing sewer systems along withthe development of sewerage systems, the use of flushing sewer systems
with septic tanks has been re-evaluated in recent years, according to theimprovements in water treatment technology. The importance of vacuum
trucks used for the periodic cleaning of sludge which is generated in septictanks, is also being reconsidered.
Please look forward to the successful activities of a new "working vehicle",which was improved in both grade and image by the eco-panels.

0301

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 interim business report for the 78thterm and report on the state of our business.

State of Business
Due to business stimulation measures, there was a trend of a cyclical upturn
observed in a portion of the economy in Japan in the half of the current fiscal
year. However, uncertainty in the future could not be swept away because ofanxiety over the strong yen, stock market plunge and etc., and the severe
conditions still continue today.
Under such conditions, the Morita Group has been promoting cost reductions
and development of new products, in addition to aggressive sales activities.
Regarding the business performance for the first six months of the year
ending March 31, 2011, the order backlog from the end of the previous term,along with the supplementary budget of the government, contributed to sales
in the fire fighting vehicles business. As a result, the net sales increased
1,477 million yen compared with the corresponding period of the previousyear to 21,926 million yen (7.2% increase), the operating income was 209
million yen (380 million yen loss in the corresponding period of the previousyear), and the ordinary income was 317 million yen (352 million yen loss inthe corresponding period of the previous year). Due to the allocation of 462
million yen in losses from revaluation of investments in securities, theinterim net loss was 31 million yen (654 million yen loss in thecorresponding period of the previous year).
By segment of the Morita Group, the net sales of the fire fighting vehicles
business were 9,434 million yen, with an operating income of 484 million
yen. The net sales of the fire protection equipments & systems businesswere 5,923 million yen, with an operating loss of 39 million yen. The net
sales of the recycling machines business were 1,229 million yen, with anoperating loss of 117 million yen.

The net sales of the environmental

conservation vehicles business were 3,992 million yen, with an operating
income of 99 million yen. The net sales of the bicycles business were 1,346
million yen, with an operating loss of 191 million yen.

M O R I TA R E P O RT 2 0 1 00402

Future Outlook
As mentioned above, the performance of the Morita Group in the first half ofthe fiscal year progressed steadily in the fire fighting vehicles business;
however, the overall performance was severe in the other businesses. It
seems that the economy of Japan continues to be unpredictable; however, inorder to secure a profit, we will continue to promote cost reductions andincrease production efficiency, while striving to perform aggressive sales
activities.
We would like to take this opportunity to ask our shareholders for theircontinued support and encouragement.

November 2010

Masahiro Nakajima
President

Morita's Forest Fire Fighting Concept Car

0105

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

Consolidated Summary● Consolidated Balance Sheets
Morita Holdings Corporation and Consolidated Subsidiaries
Millions of yen

FY2009First half

FY2010First half

FY2009Full Year¥ 31,059¥ 31,325¥ 36,269

30,53529,09929,778

409

423

433

6,640

6,085

6,576

¥ 68,644¥ 66,933¥ 73,058

Current liabilities¥ 24,190¥ 16,736¥ 25,495

Long-term liabilities

15,501

19,132

16,260Total liabilities

39,69235,86941,756

Common stock

4,746

4,746

4,746

Additional paid-in capital

3,743

3,743

3,743

Retained earnings

22,53924,88825,142(967)(1,028)(1,023)30,062

32,34932,608AssetsCurrent assets
Property, plant and equipmentIntangible assets
Investments and other assets
Total assets
Liabilities

Net assets
Shareholders' equity

Treasury stock, at cost
Total shareholders' equity
Valuation and translation adjustments
Unrealized gains (losses) on available-for-sale securities

181

105

150

Deferred gains (losses) on hedges

13(37)(15)(1,600)(1,728)(1,728)

(26)

(76)

(50)

(1,432)(1,737)(1,644)

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

322451

338

28,952

31,06331,302¥ 68,644¥ 66,933¥ 73,058

M O R I TA R E P O RT 2 0 1 00602

● Consolidated Statements of Income
Morita Holdings Corporation and Consolidated Subsidiaries
Millions of yen

FY2009First half

FY2010First half

FY2009Full Year¥ 20,449¥ 21,926¥ 61,737

Cost of sales
Gross profit

15,6694,779

16,6505,276

47,30014,437

Selling, general and administrative expenses
Operating income

5,160(380)

5,067
209

10,213
4,223

Other income

268350697

Other expenses

475

667

926

Income before income taxes

(587)

(108)

3,993

77
−77(70)−(70)

1,935(364)
1,935

(10)
(¥ 654)(6)(¥ 31)

13¥ 2,044

Net sales

Income taxes
Current
Deferred

Minority interests in earnings of consolidated subsidiaries
Net income● Consolidated Statements of Cash Flows
Morita Holdings Corporation and Consolidated Subsidiaries
Millions of yen

0701

FY2009First half

FY2010First half

FY2009Full Year

Cash flows from operating activities(¥ 4,551)¥ 1,010¥ 764

Cash flows from investing activities

(561)

138

(950)Cash flows from financing activities

(407)

(569)

(4,037)(4,224)

Net increase (decrease) in cash and cash equivalents(5,521)

579

Cash and cash equivalents at beginning of year

9,200

4,976

9,200

Cash and cash equivalents at end of period (year)¥ 3,679¥ 5,556¥ 4,976

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

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, OsakaTokyo 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
Development, manufacturing and sales of ladder trucks, fire
trucks and other fire trucks and specialty vehicles
MORITA BOHSAI TECH CORPORATION
Shiba256 Square Building 8F, 2-5-6 Shiba, Minato-ku, Tokyo,105-0014, Japan
Sales of fire protection equipments focused on fire extinguishers.Salesof fire protection equipments focused on fire extinguishers.
Design, construction and maintenance of fire protection facilities
MORITA ENVIRONMENTAL TECH CORPORATION
1530 Konoda-cho, Funabashi-shi, Chiba, 274-0081, Japan
Design of waste recycling facilities and other waste disposal facilities.
Development, manufacturing and sales of large hydraulic equipment
MORITA ECONOS CORPORATION
1-48 Jinmu-cho, Yao-shi, Osaka, 581-0067, Japan
Development, manufacturing and sales of environmental conservation vehicles such assanitation vehicles (vacuum trucks), garbage trucks and sewage vacuum loader vehicles
MORITA TECHNOS CORPORATION
5-5-20 Shoji-Higashi, Ikuno-ku, Osaka-shi, Osaka, 544-8585, Japan
Aftercare service and maintenance of fire trucks, equipment and materials. Development,manufacturing and sales of electronic applied machinery and information processing machinery
MIYATA INDUSTRY CO.,LTD.
1-1-1 Shimomachiya, Chigasaki-shi, Kanagawa, 253-8588, Japan
Development, manufacturing and sales of fire extinguishers,
fire fighting equipment, and fire protection-related equipment
MIYATA CYCLE CO.LTD.
3-25-31 Nishishinbashi, Minato-ku, Tokyo, 105-0003, Japan
Development and sales of bicycles

M O R I TA R E P O RT 2 0 1 00802

MORITA SOGO SERVICE CORPORATION
5-5-20 Shoji-Higashi, Ikuno-ku, Osaka-shi, Osaka, 544-8585, 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, 211100, China
SICHUAN MORITA FIRE SAFETY APPLIANCES CO., LTD
No.8, Xinhua Avenue, Chengdu Cross-Straits TechnologicalIndustry Park, Wenjiang District, Chengdu City, 611130, China
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, Vietnam0901

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

Shareholder s MemoIntroduction to the ShareBusiness Year

April 1st to March 31st

Annual General Meeting of Shareholders

June

Reference date

Annual General Meeting of Shareholders – March 31stYear-end Dividend – March 31stInterim 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

Stock Listing

Tokyo Stock Exchange, Osaka Securities Exchange[Special Account]
For shareholders who did not use JASDEC (Japan Securities DepositoryCenter, 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 the specialaccount, notification of address change, and so on, please inquire with theabove 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 address change
and so on. For shareholders who do not have an account at a securities firm,
please inquire with the above contact.

M O R I TA R E P O RT 2 0 1 01002

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
5-5-20 Shoji-Higashi, Ikuno-ku, Osaka-shi, Osaka, 544-8585, Tel. +81-6-6756-0100
Tokyo Head Office3-25-31 Nishishinbashi, Minato-ku, Tokyo 105-0003, Tel. +81-3-5777-5777

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