M O R I TA R E P O RT 2 0 0 9

To Shareholders and Investors
Interim Business Report for the 77th Term
From April 1, 2009 to September 30, 20092009 Good Design Award WinnerHome Fire Extinguisher “Kitchen Eye”

Securities Identification Code: 6455

Topics
Dedicated toll-free number is now available
for collection of obsolete fire extinguishers
A fire extinguisher is designed to expel the contained extinguishing agent byapplying very high pressure. If rusted or dented due to aged deterioration, it
may burst being unable to withstand the internal pressure any longer. A fire
extinguisher has a limited operational life, which is generally eight years
from the year of manufacture. Over many years MORITA BOHSAI TECHCORPORATION has been engaged in collecting condemned or obsolete
extinguishers. It collects about half a million extinguishers each year.
To intensify our collection efforts, we have established a “dedicated toll-freenumber for collection of obsolete fire extinguishers.”

Dedicated toll-free number: 0120-936-479
Attendance hours: 9:00-12:00 and 13:00-17:00 on weekdays
Collection points: Each establishment of MORITA BOHSAI TECHCORPORATION and Miyata Industry Co., Ltd.
and their dealers.

Badly corroded fire extinguishers
Collected extinguishing agents will be reused as extinguishing agents in Eco
Mark-accredited fire extinguishers “Eco Venus.” We have also developed atechnology to produce fertilizer raw materials from fire extinguishing agents,
which were permitted by the Ministry of Agriculture, Forestry and Fisheries
to be registered as a byproduct compound fertilizer named “MORITA 1GOU.” This is part of our environmental protection efforts.

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M O R I TA R E P O R T 2 0 0 9

■■Home fire extinguisher “Kitchen Eye” receives
Good Design Award (cover page photo)

Home fire extinguisher “Kitchen Eye,” marketed by one of Morita Group
companies, Miyata Industry Co., Ltd. received the 2009 Good DesignAward. Having a refurbished image of a traditional fire extinguisher, aKitchen Eye extinguisher is available in four-color variations and canfittingly be placed at any corner of your home as an interior item.
The agent contained in a Kitchen Eye extinguisher is made principally ofvinegar and other safe food raw materials approved by the Ministry ofHealth, Labour and Welfare. It is safe and body-friendly. The agent is liquid,so you can eject it toward fire for certain extinguishment. It does not spatterlike the agent of a powder fire extinguisher, so it does not soil things aroundand makes posterior cleaning easier.

■■Morita present at Eco-Technology Exhibition 2009

The Morita Group exhibitedits products at the EcoTechnology

Exhibition

2009 held at the West Japan
General Exhibition Center(Kitakyushu City, FukuokaPref.) on October 21st-23rdof this year. The exhibition
being - the 14th and the 1st for
Morita to participate in was heldwith the aim of presenting in one
place all existing and available
environmental protection andenergy technologies that aresuitable for the age of global
environment, promoting environmental consciousness and healthy
development of environmental business among local industries. The Morita
Group exhibited the following four products in demonstration of its groupwide efforts for "eco-oriented" product development:

M O R I TA R E P O RT 2 0 0 902

–– Miracle CAFS Car;–– Eco Venus;–– MORITA 1 GOU;–– Emergency Use Body Bag (designed to prevent bodies from decomposing
in case of a large-scale disaster that causes numerous casualties).
Particularly eye-catching of the four was the Miracle CAFS Car. The CAFS
(compressed air foam system) is a system designed to cool items in flamesby efficient utilization of vaporization heat generated from a larger moisturesurface area that is provided by replacing water by foam. The surface area ofwater is maximized in this manner and makes it possible to extinguish firewith a small amount of water.
To demonstrate the performance of the Miracle CAFS Car we performed afire extinguishing experiment on a vehicle fire at our Ueno Factory in Iga
City, Mie Prefecture. The experiment was conducted on two vehicles using
water and the CAFS, and compared the time required to extinguish fire andthe amount of water used. The experiment clearly showed the superiority of
the CAFS in the time and water required.

The experiment was put on the NHK BS Hi-Vision TV program “Einstein'sEye” and attracted attention of fire service people across the country.

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M O R I TA R E P O R T 2 0 0 9

Message from Top Management
We would like to extend our deep appreciation for your continued supportfor Morita Group.
We are pleased to provide you below with the Interim Business Report forthe 77th term including a business overview.

Business Overview
During the first half of the current fiscal year, the Japanese economy
remained in an unfathomable recession. Despite partial signs of recovery,
uncertainty over the future economy fueled by the recent sharp yen
appreciation has drastically dampened companies’ appetite for investment. It
is likely that the current harsh economic conditions will continue for sometime.
In such circumstances, we moved to a holding company structure on October
1st of last year, and have been working hard to bolster our group’s
profitability and enhance its corporate value.
For the first six months of the year ending March 31, 2010, we achieved
sales of 20,449 million yen, an increase of 4,172 million yen, or 25.6%, fromthe first six months of the previous fiscal year, as the result of turning Miyata
Industry Co., Ltd. into a consolidated company in the 3rd quarter of theprevious fiscal year. With respect to earnings, we experienced an operating
loss of 380 million yen and an ordinary loss of 352 million yen because of
declines in demand for products of the fire extinguisher/equipment division
as well as for the industrial machinery division. Net income for the first six
months of the year ending March 31, 2010, decreased 404 million yen on ayear-on-year basis to a net loss of 654 million yen due to unrealized losses
on available-for-sale securities caused by the stock market’s plunge.
By segment, the Disaster Prevention Business posted sales of 13,339 million
yen, and an operating loss of 152 million yen. The Environmental Businessrecorded 5,487 million yen in sales and a 28 million yen operating loss.
Other Businesses recorded sales of 1,622 million yen and an operating lossof 192 million yen.

M O R I TA R E P O RT 2 0 0 90402

Future Outlook
As shown above, our group suffered considerable earnings deterioration for
the first half of the current fiscal year. For the future we should expect
companies to continue holding back on capital investment and therefore thefire extinguisher/equipment division and the industrial machinery division toremain sluggish. On the other hand, however, we expect that the
government's supplementary budget will increase demand for fire fighting
vehicles far beyond our initial prospects; therefore, the fire pump division
will likely achieve relatively healthy sales and profits. In view of the above
circumstances, the Morita Group will strongly forge ahead with further cost
reduction and productivity improvement to obtain better earnings.
We would like to take this opportunity to ask our shareholders for theircontinued support and encouragement.

November 2009

Masahiro Nakajima
President

05
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M O R I TA R E P O R T 2 0 0 9

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

FY2008First half

FY2009First half

FY2008Full Year¥ 24,744¥ 31,059¥ 37,178

28,58830,53530,686

329

409

451

6,106

6,640

5,993

¥ 59,768¥ 68,644¥ 74,310

Current liabilities¥ 21,688¥ 24,190¥ 29,506

Long-term liabilities

10,057

15,501

15,453

Total liabilities

31,74539,692

44,960Common stock4,746

4,746

4,746

Additional paid-in capital

4,364

3,743

4,362

Retained earnings

20,884

22,53923,400Treasury stock, at cost

(2,500)(967)(2,711)

27,49530,062

29,798

Unrealized gains (losses) on available-for-sale securities

453

181

(269)

Deferred gains (losses) on hedges

(5)

13(4)

(244)

(1,600)(1,600)AssetsCurrent assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total assets
Liabilities

Net assets
Shareholders' equity

Total shareholders' equity
Valuation and translation adjustmentsUnrealized 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

33

(26)

(61)

236

(1,432)(1,935)

291

322

1,486

28,022

28,952

29,349¥ 59,768¥ 68,644¥ 74,310

M O R I TA R E P O RT 2 0 0 906
02

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

FY2008First half

FY2009First half

FY2008Full Year¥ 16,277¥ 20,449¥ 56,704

Cost of sales
Gross profit

12,133
4,143

15,6694,779

44,794
11,910

Selling, general and administrative expenses
Operating income

4,295
(152)

5,160
(380)

9,526
2,383

Other income

464

268

1,033

Other expenses

471

475

1,904

Income before income taxes

(159)

(587)

1,512

92
−92

77−
77

1,189(942)246(3)(¥ 249)(10)(¥ 654)147¥ 1,119

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

FY2008First half

FY2009First half

FY2008Full Year

Cash flows from operating activities(¥ 2,722)(¥ 4,551)¥ 2,269

Cash flows from investing activities

(886)

(561)

(3,509)Cash flows from financing activities

2,674

(407)

6,494

Net increase (decrease) in cash and cash equivalents(934)(5,521)(5,252)

Cash and cash equivalents at beginning of year

3,947

9,200

3,947

Cash and cash equivalents at end of period (year)¥ 3,012¥ 3,679¥ 9,200

M O R I TA R E P O R T 2 0 0 9

Company ProfileOverview
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 ofindirect management operations on acommission basis

Group Companies
MORITA CORPORATION
1-5 Techno Park, Sanda-shi, Hyogo, 669-1339, Japan
Manufacturing and sales 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, Japan
After-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 fightingequipment, disaster prevention-related equipment and bicycles

M O R I TA R E P O RT 2 0 0 90802

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 0 9

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 30thOther 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 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 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 0 9

1002

Please visit our website
for the latest investor relations information.
http://www.morita119.com

Mail-order Website
for 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 Office
3-25-31 Nishishinbashi, Minato-ku, Tokyo 105-0003, Tel. +81-3-5777-5777

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