To Shareholders and Investors

InterimBusiness Reportfor the86th Term

From April 1, 2018 toSeptember 30, 2018

Securities Identification Code: 6455

T o p Me ssag eGreeting

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 Fighting
Vehicles, Fire Protection Equipment & Systems, Recycling
Machines and Environmental Conservation Vehicles whileremaining committed to its missions of protecting humanlives and property and irreplaceable nature of the earth and,for that, keeping on trying to make greater innovation andcreating new value. Aiming to make great strides and improveenterprise value, we are also working under our basic policy of"exploiting new markets", "increasing profitability of existing
business", "enhancing the R&D", and "carrying out investment
for sustainable growth". In addition, we are convinced thatdevelopment of a sustainable society will be facilitated bypromoting corporate activities to take good care of theenvironment and to realize a better society to live in under acorporate governance structure which enables transparent,
fair, quick and bold decision-making. At Morita Group, we are
all united and striving to earn the trust of a broad spectrum ofsociety.
We sincerely thank you for your continued support in thefuture.

Masahiro Nakajima, Chairman and CEO
Kazumi Ogata, President

Overview of the first half of 86th TermNet sales

Operating incomeOrdinary income¥31,925 million¥1,093 million¥1,379 million

Year on year

Year on year

Year on year

Up 16.0%

Up 15.1%

During the second quarter of FY2018 under review, Japan’s
economy has been on a moderate recovery trend as
evidenced by improvements in corporate earnings andemployment situation thanks to various economic measures
implemented by the government; however, the futureremains uncertain because of a series of natural disasters andglobal trade conflict that stems from protectionist policies ofthe U.S.
In such circumstances, Morita group has been working on
various measures aimed at increasing enterprise value for theUp 11.0%

Net income attributable toowners of parent company¥728 million
Year on year

Up 9.7%

final year of our Mid-term Plan, "Morita Advance Plan 1000."
With respect to our business performance, net sales for theconsolidated cumulative second quarter increased by ¥4,408
million from the year-ago period to 31,925 million yen(+16.0%). Also, operating income increased by ¥143 million to¥1,093 million (+15.1%), ordinary income, by ¥136 million to¥1,379 million (+11.0%), and quarterly income attributable toowners of parent company, by ¥64 million to ¥728 million(+9.7%) year-on-year, respectively.

Morita News
Compact off-road fire truck Red Ladybug
Awarded the "2018 Good Design Best 100"

Fire Fighting
Vehicles Business

Morita Corporation’s "Compact off-road fire truck Red Ladybug," which was developed with thecooperation of Kawasaki Heavy Industries, Ltd., was recently selected as a winner of the "2018 Good
Design Best 100," an award hosted by Japan Institute of Design Promotion.

■About the award-winning product "Compact off-road fire truck Red Ladybug"
A series of unforeseen natural disasters have occurred in recent years across Japan, resulting indamages caused by earthquakes, typhoons and torrential rains that lead to wind and flooding hazards
as well as damages resulting from landslide, snow, volcanic eruption and forest fires.
Red Ladybug is a fire truck equipped with excellent off-road travelling performance, which enables
self-propelled entry into disaster sites covered with rubble, landslide or other debris that make it
difficult for a normal fire truck to approach. MULE PRO-FX, a multi-purpose 4x4 base truck by Kawasaki
Heavy Industries, which offers outstanding off-road performance and stable riding comfort, wasadopted as its base truck. Red Ladybug accommodates three persons and is ideal for smooth firefighting operations. Driven by a strong desire to save as many lives as possible, we have developed
such a fire truck that can reach the disaster sites quickly.

Recycling Machines
Business

Developed and Launched Vertical Crusher "VARICRUSHERTM"

Main items for crushingThis term, Morita Environmental Tech Corporation launched "VARICRUSHER TM," a vertical crusherdesigned for small miscellaneous scraps and small-sized home electrical appliances.
"VARICRUSHER TM" is a high-speed rotating vertical crusher that was developed to crush small
miscellaneous scraps such as hot water dispensers, small motors and transformers as well as smallsized home electrical appliances such as computers, printers, rice cookers and microwave ovens. Its
aim has been to enable the recovery of iron, copper, aluminum, plastic and other resources fromscraps that had been difficult to process in the past.
By integrating the crusher body with motor into one unit, the crusher can now be installed in asmaller space.
Capitalizing on its accumulated experience as a
Small-sized home
Hot waterTransformers
scrap processing plant manufacturer, Morita
electrical appliances
dispensers
and motors
Environmental Tech proposes, designs and builds
valuables recovery lines that are adapted to theitem for processing. Fur thermore, M orita
Environmental Tech has installed a demonstration
machine inside its plant (Funabashi City, Chiba
Pref.) to conduct crush sampling tests in responseto requests by customers as needed.

Environmental ConservationVehicles Business

Launched "Miracle Changer J01," an odor-eliminating pump oil control system"Turning unpleasant odor into pleasant smell," designed for sanitary vehicles (vacuum trucks)
In November this year, Morita Econos Corporation launched "Miracle Changer J01," an odor-eliminating pump oil control system forsanitary vehicles that was jointly developed with Kao Corporation under the concept, "turning unpleasant odor into pleasant smell."
The product "Miracle Changer J01" has been jointly developed to improve the environment which the sanitary vehicles operate and thework environment of operators. By using this product, odor can be controlled effectively, restraining unpleasant odor in areas in which thesanitary vehicles operate, places where such vehicles are stored, and other locations. The product exhibits outstanding effect especially insightseeing areas and densely inhabited residential districts where the odor around the work area can be a nuisance. Pleasant smell isgenerated simply by adding a small amount of this product into the sanitary vehicle’s vacuum pump oil tank, and no special maintenanceis required.
Morita Econos will keep up its efforts to develop environment-friendly products by valuing the voice of its customers.
Odor-eliminating mechanism

Emission ofunpleasant odor

Miracle Changer J01

Pleasant smell

Unpleasant odor turns into pleasant smell when the offensive odor emitted by sanitary vehicles comes into
contact with Miracle Changer J01, developed jointly by Morita Econos Corporation and Kao Corporation.

O

Financial Highlights (Consolidated)
Operating income

Unit: Millions of yen: First half

: Full-year

Unit: Millions of yen: First half(Forecast)

85,50285,063(Forecast)

8,483
7,517

68,57429,571

31,92527,516

21,8991,486

2016.32019.32018.32017.3

1,850

1,093

950

2016.32017.32019.32018.3

Net income attributable toowners of parent company

Ordinary income
Unit: Millions of yen: First half

: Full-year

Unit: Millions of yen: First half

9,600

10,129
9,030

6,040

(Forecast)

8,123

1,833

: Full-year

9,200

9,649

88,000: Full-year

5,800(Forecast)

5,741

4,537

2,052

2016.3

1,242

2017.32018.3922

1,379
2019.32016.3

1,304
664
2017.3728

2018.32019.3

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

Net sales

9,763 million yen

Year on year
Up 32.9%

Year on year

14,954 million yen Up 9.4%

Operating income Year on year

Operating income Year on year

Up 357.6%

Down 74.2%

514 million yen

Sales of "SPRINEX," a packaged
automatic fire extinguishingsystem, were robust.

148 million yen

Sales in overseas regions
increased steadily except in
China where delays in issuing
import license occurred due toinstitutional changes.

30.6%
Net salescompositionEnvironmental Conservation Vehicles BusinessNet sales

4,846 million yen

Year on year
Down 0.3%

Operating income Year on year

252 million yen

Up 13.4%

Some delays in delivery occurred
due to the impact of disasters
caused by torrential rains andtyphoons.

15.2%

46.8%
Recycling Machines Business

7.4%

Net sales

2,361 million yen

Year on year
Up 43.9%

Operating income Year on year

230 million yen

Up 827.2%

Sales of parts and maintenanceincreased steadily.

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

3-25-31 Nishishinbashi, Minato-ku, Tokyo

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

MORITA CORPORATION

1-5 Techno Park, Sanda-shi, Hyogo,669-1339, Japan
Development, manufacturing and sales of laddertrucks, fire trucks, other types of fire trucks andspecialty 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.

Executives
Chairman & CEO

Masahiro Nakajima

President

Kazumi Ogata

Director and Executive Vice President

Yukihiro Maehata

DirectorShinichi Kanaoka

DirectorMitsuo IsodaDirector

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

Development, manufacturing and sales of large
hydraulic equipment

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,
FinlandDevelopment, manufacturing and sales ofcombined platform ladders and aerial platforms

Distribution of Shares by Type of Shareholder
As of September 30, 2018

Information about the StockBusiness Year

Reference Dates

Other Japanese
corporations
8.2%

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
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 0.7%

Treasury shares 3.6%

April 1 to March 31

Annual General Meeting ofJune
Shareholders

Non-Japanesecorporations
16.8%

Total

46,918,542 shares
Financial institutions
42.2%

Individuals/others

28.5%

Top 10 Shareholders

As of September 30, 2018

Name

No. of shares (thousand)

The Dai-ichi Life Insurance Company, Limited

3,265
2,232

(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.

2,048

Sumitomo Mitsui Banking Corporation

2,007

Japan Trustee Services Bank, Ltd. (Trust account)

1,834

AIR WATER INC.

1,730

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

1,172[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 numberlisted 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
3-25-31 Nishishinbashi, Minato-ku, Tokyo, 105-0003
Tel. +81-3-5777-5777
https://www.morita119.com

909

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