M O R I TA R E P O R T 2 012

To Shareholders and Investors
Business Report for the 79th Term
From April 1, 2011 to March 31, 2012

Protecting Human Life and Mother Earth

Securities identiﬁcation code:6455

Morita Topics■■

Brilliant feat!! Our Wildﬁre Truck Concept received
two international design awards, and was exhibited
together with other new products of the Morita
Group in Sapporo for the ﬁrst time in Japan.

The Wildﬁre Truck Concept is the Concept Car proposed by the
Morita Group to the world. It is a ﬁre ﬁghting vehicle but also serves
as a mobile base for the transmission of information on forest ﬁres
equipped with enhanced information and communication capability. The
Wildﬁre Truck Concept was ﬁrst presented at the world s biggest ﬁreshow in Germany in June 2010, and subsequently on display at ﬁreexhibitions in South Korea and Beijing. Let alone its functions, theinnovative design of the truck was praised in various countries, as aresult of which it won the highest possible awards: the 2011 IDEAGold Award in the Commercial and Industrial Products category andred dot award: product design-best of the best 2011 in the category
Mobility Both awards are referred to as the two of the world s top
three design awards. We presented the Wildﬁre Truck Concept for theﬁrst time in Japan at the Sapporo International Fire and Safety
Exhibition in Sapporo in June 2012.

01

M O R I T A R E P O R T 2 0 12

At the same exhibition, we alsopresented our major products in the Fire
Protection Equipments & Systems
Business, which made a great contribution to business performance of theMorita Group in ﬁscal 2011: package-type automatic ﬁre extinguisher
SPRINEX and the aluminum storedpressure ﬁre extinguisher ALTESIMO.
SPRINEX is a unique product of theMorita Group and has already been
Package-type
automatic ﬁre extinguisher
introduced by many customers as
SPRINEX
automatic ﬁre extinguishing equipment
replacing sprinklers thanks to its features such as easy introduction
with simple installation and maintenance work, ﬁre extinguishing
performance superior to water, freeze proofness, and use of safe
ﬁre-extinguishing chemicals. New ﬁre extinguisher ALTESIMO isa safe and reassuring ﬁre extinguisher for future generations, which
was developed by gathering all manufacturing technologies for ﬁreextinguishers at the Morita Group and launched to the market in
September 2011. Having destroyed conventions of ﬁre extinguishers
with its great design appeal and visibility, use of a light-weight andeasy-to-handle aluminum container, and environmental friendliness, thisproduct grew up to a strong core product of use.

New aluminum stored-pressure ﬁre extinguisher
ALTESIMOM O R I T A R E P O R T 2 0 12

02

■
■

Morita Group s Social Action Programs

Following the occurrence of the Great East Japan Earthquake, we
considered what the Morita Group was able to do at the moment. Since
quick restoration of ﬁre ﬁghting power was needed in the coastal areaof the Tohoku region where many ﬁre ﬁghting vehicles had been swept
away by the tsunami, the Morita Group joined the activities initiated by
the Fire Chief s Association of Japan of donating second-handﬁre ﬁghting vehicles without any charge. We helped both in servicing
vehicles and pumps and in paper work for emergency vehicle registration. In November 2011, we received a letter of thanks from the Fireand Disaster Management Agency that appreciated our activities.

In addition, our Fire Protection Equipments & Systems Business ran
a campaign of raising 2 yen from the fee for collecting every old ﬁreextinguisher. Out of the 2 yen, we donated 1 yen to Green Fund forsupporting reconstruction in the region hit by the Great East Japan
Earthquake through the National Land Aﬀorestation Promotion
Organization, a public interest incorporated association. As before, theother 1 yen was donated for tropical forest regeneration as Eco-utan
fund to NPO Borneo Oranghutan Survival Foundation Japan.

03

M O R I T A R E P O R T 2 0 12

■■Do you know MIYATA Care ?

Miyata Cycle Co., Ltd. launched the MIYATA
Care program as a secure after-sale service
from customers viewpoint in June 2011, in
which it has been working on activities such as
MIYATA CARE shop welcoming repair
customers, 3-year theft compensation, and3-year quality warranty. In addition, by adding the accident
insurance service program covering a just-in-case accident, andextending the warranty period from 5 to 6 years for frames andforks from purchase date. We provide customers with an after-saleservice that ensures long and secure use.
Amid a growing number of people getting aware of health and environment
and using bicycles for commuting, leisure, or other purposes, we willcontinue providing high value-added products and expanding services
that meet the customers needs.

New product EX Cross T GreenNew product Freedom Liquid Red

M O R I T A R E P O R T 2 0 12

04

■
■

New emergency survival goods
releasedAi 119was

In the wake of the Great
East Japan Earthquake,
we thought over what
emergency survival goods
are for protecting our
precious lives by ourselves,
which gave birth to headprotection cap & cushion
Ai 119, which can be used during evacuation and at evacuation
centers. This product usually serves as a cushion, but turns into a headprotection cap in an emergency. At an evacuation center, this helps
protecting ourselves from cold coming from the ﬂoor, because it is used
as a cushion for 2 persons when unfolded or for 1 person when folded
into half. In addition, reﬂective cloths provided at the front and theboth sides enable you to be identiﬁed even at night or in the dark. Its
simple design allows the use even for sports watching and outdoor
events. This is now being sold at emergency survival goods shops andthrough the online store for MORITA original goods MORITA NETSHOP .

Cover
page

05

A drawing by Junya Wada, a third-grade student (at thetime of application) in Setagaya, Tokyo, selected for thebest award in the 7th Future Fire Truck Idea Contest forelementary school students throughout JapanM O R I T A R E P O R T 2 0 12

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 Business Report on the 79th
term and report on the business overview.

Business Overview

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

In this consolidated ﬁscal year, the Japanese economy remained in
uncertainty owing to global economic slowdown and prolonged yen
appreciation, although signs of reconstruction from the Great East
Japan Earthquake were beginning to be seen.
Under such situations, 2011 was the year when our ability to address
restoring the ﬁre-ﬁghting power which was unprecedentedly damagedby the Great East Japan Earthquake and disposing of huge amount ofdebris generated at the aﬀected area was tested.
Amid this, particularly as a result of a favorable sales trend in theFire Protection Equipments & Systems Business, the sales amount of
this consolidated ﬁscal year was 63,694 million yen, up 3,945 million
yen or 6.6% from the previous term. In addition, the operating proﬁt
was also 5,073 million yen, up 734 million yen or 16.9% from theprevious term because of a return to proﬁtability of the Bicycles
Business and the Recycling Machines Business, which had been in the
red until the previous consolidated ﬁscal year as well as the strong
sales in the Fire Protection Equipments & Systems Business. The
ordinary proﬁt was 5,256 million yen, up 641 million yen or 13.9%.
Albeit impairment loss of 473 million yen, appraisal loss of stocks ofaﬃliated companies of 102 million yen, and others were marked as
extraordinary loss, the net income was 2,803 million yen, up 572
million yen or 25.7%. All the sales amount, operating proﬁt, ordinary
proﬁt, and net income hit record highs.

M O R I T A R E P O R T 2 0 12

06

Business Condition by Segment・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Fire Fighting Vehicles BusinessIn the Fire Fighting Vehicles Business, the sales amount was 31,417
million yen, down by 170 million yen or 0.5% from the previous termowing to loss of special procurement allocated in the supplementarybudget for ﬁscal 2009 despite the slightly increased demand as aconsequence of the Great East Japan Earthquake. The segment proﬁt
decreased to 3,265 million yen by 475 million yen or 12.7% from theprevious term.

Fire Protection Equipments & Systems BusinessIn the Fire Protection Equipments & Systems Business, the sales
amount was 16,343 million yen, up 2,840 million or 21.0% from theprevious term thanks to the increased demand in consequence of therevision of the law on ﬁre extinguishers as well as strong sales of
package-ｔype automatic ﬁre extinguisher SPRINEX. The segment
proﬁt increased to 1,159 million yen by 510 million yen or 78.5% fromthe previous term.

Recycling Machines BusinessIn the Recycling Machines Business, the sales amount was 4,332
million yen, up by 994 million yen or 29.8% from the previous term
partly thanks to the increased demand associated with the disposal ofdebris related to the Great East Japan Earthquake. The proﬁt andloss status of the segment improved by 291 million yen from theprevious term to 136 million yen in proﬁt. (In the previous consolidated ﬁscal year, we marked a loss of 155 million yen.)

Environmental Conservation Vehicles Businesses

In the Environmental Conservation Vehicles Business, the sales
amount was 8,273 million yen, up by 296 million yen or 3.7% from theprevious term as a result of focused eﬀorts on part sales and maintenance. The segment proﬁt increased to 300 million yen by 102 million
yen or 52.1% from the previous term.

07

M O R I TA R E P O R T 2 012

Bicycles BusinessIn the Bicycles Business, the sales amount was 3,327 million yen,down by 16 million yen or 0.5% from the previous term in consequenceof reviewing the product range. The proﬁt and loss status of thesegment improved, by 281 million yen from the previous term, to 207
million yen as a result of focused eﬀorts on the expansion of sales ofhigh value-added products. (In the previous consolidated ﬁscal year,
we marked a loss of 74 million yen.)

Issues We Need to Address

・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Our business environment is expected to get more challenging andchange more rapidly. To deal with such a situation, we will strive toestablish a strong brand with loyal clientele by revisiting ourprinciples of technological improvement and achievement ofcustomer satisfaction. Following are the speciﬁc issues we need toaddress:
1) Increasing the earning power of the existing businesses
2) Increasing the earning of the overseas business3) Increase the market share through the launch of high value-added
products
4) Human resource development
The Morita Group will strive further to improve its corporate value
through speedier management and strengthened earning power.
We would like to take this opportunity to ask our shareholders fortheir continuing support and encouragement.

June 2012

Masahiro Nakajima
President

M O R I TA R E P O R T 2 012

08

FINANCIAL HIGHLIGHTS（Consolidated）●Net Sales●Ordinary Profit（Millions of yen）
70,00060,000 56,704

61,73759,74963,694

4,503

4,614

4,000

40,0003,000

30,000

2,783

2,000

20,0001,000

10,00002009.3 2010.3 2011.3 2012.3●Net Income

（％）
2,803

2,500

2,230

7.0

7
6.1

6

2,044

2,000

2009.3 2010.3 2011.3 2012.3●Return on Assets（ROA）（Millions of yen）
3,000

6.4

5

1,500
1,000

5,256

5,000

50,0000（Millions of yen）
6,000

1,119

4

4.1

500
0

2009.3 2010.3 2011.3 2012.3●Shareholders' Equity Ratio（％）

15,00014,74812,568

44.9
42.4

09

●Interest-Bearing Liabilities
18,31450

30

2009.3 2010.3 2011.3 2012.3（Millions of yen）
20,000

60

40

3

44.8

37.5

2009.3 2010.3 2011.3 2012.3

M O R I TA R E P O R T 2 012

11,70810,0005,000

02009.3 2010.3 2011.3 2012.3

Consolidated Summary● Consolidated Balance Sheets

Morita Holdings Corporation and Consolidated Subsidiaries
As of March 31, 2011 and 2012
Millions of yen

AssetsCurrent assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total assets

2012¥ 34,909¥ 40,948

1,046

1,613

30,167
5,640

Liabilities
Current liabilities
Long-term liabilities
Total liabilities

6,341¥ 78,051¥ 20,852¥ 27,263

38,33541,834

14,571

4,746

4,746

26,62728,859

3,743

3,742

(1,036)(1,040)(195)

67(1,428)(1,066)(1,845)(1,350)34,080

Accumulated other comprehensive income
Unrealized gains (losses) on available-for-sale securities
Deferred gains (losses) on hedges
Unrealized gains (losses) on revaluation of land
Foreign currency translation adjustments
Total accumulated other comprehensive income

29,148¥ 71,765

17,483

Net assets
Shareholders' equity
Common stock
Additional paid-in capital
Retained earnings
Treasury stock, at cost
Total shareholders' equity

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

2011

(100)
(121)

1,194

33,429¥ 71,765

36,307

0

(351)

1,258

36,216¥ 78,051

M O R I TA R E P O R T 2 012

10

● Consolidated Statements of Income
Morita Holdings Corporation and Consolidated Subsidiaries
For the Years Ended March 31, 2011 and 2012

Millions of yen

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Other income
Other expenses
Income before income taxes
Income taxes
Current
Deferred

Minority interests in earnings of consolidated subsidiaries
Net income

2011

2012

¥ 59,749¥ 63,694

14,43915,783

4,339

5,073

45,30947,911

10,70910,100

561

1,092
1,340

1,020

1,829

2,222

1,815

1,741

4,614

4,090

(480)

(13)

44

69

¥ 2,803¥ 2,230Yen

Per share of common stock
Basic net income
Diluted net income
Cash dividends applicable to the year

2011

2012

¥ 49.98¥ 62.85

10.00

16.00

−

−

● Consolidated Statements of Cash Flows
Morita Holdings Corporation and Consolidated Subsidiaries
For the Years Ended March 31, 2011 and 2012

Millions of yen

Cash flows from operating activities

2011

2012

¥ 5,366¥ 5,510

Cash flows from investing activities(1,028)(1,898)Cash flows from financing activities(2,940)(1,314)

Net increase (decrease) in cash and cash equivalents

1,397

2,293

Cash and cash equivalents at beginning of year

4,976

6,373

¥ 6,373¥ 8,667

Cash and cash equivalents at end of year11

M O R I TA R E P O R T 2 012

● Consolidated Statement of Changes in Net Assets(in millions of yen)

Morita Holdings Corporation and Consolidated Subsidiaries
For the Year Ended March 31, 2012
Shareholders' equity
Commonstock

Balance at beginning of year

4,746

Additional
paid-in capital

3,743

Total
Treasury stock, shareholders'at costequityRetainedearnings

26,627(1,036)34,080

Amount of change
Cash dividends(446)

Net income

2,803

Acquisition of treasury stock
Disposal of treasury stock(0)

Reversal of reserve forland revaluation

(446)
2,803
(5)

(5)

1

1

(125)

(125)

Net changes other thanshareholders' equity−

Total changes
Balance at end of year

Balance at beginning of year

−

(0)

2,232

(4)

2,227

4,746

3,742

28,859(1,040)36,307

Accumulated other comprehensive income
Minority
Unrealized Deferred Unrealized
Foreign interests in
Total
gains on
gains
gains
currency consolidated net assets
available(losses)on(losses) revaluation translation subsidiaries
for-saleadjustments
securities on hedgesof land

(195)

(100)

(1,428)

(121)

1,194

33,429Amount of change
Cash dividends(446)

Net income

2,803

Acquisition of treasury stock(5)

Disposal of treasury stock1

Reversal of reserve forland revaluation
Net changes other thanshareholders' equity

(125)
262

100

361

(229)

Total changes

262

Balance at end of year

67

64

100

361

(229)

64

2,786

0

(1,066)

(351)

1,258

36,216559

M O R I TA R E P O R T 2 012

12

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 Osaka

Tokyo Head Oﬃce

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

Type of BusinessControl/management of business activities
of group companies, and undertaking of
indirectmanagement

operationsonacommission basis

Group Companies
MORITA CORPORATION
1-5 Techno Park, Sanda-shi, Hyogo, 669-1339, Japan
Development, manufacturing and sales of ladder trucks, ﬁretrucks 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.
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,
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, 544-0003, 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

13

M O R I T A R E P O R T 2 0 12

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
Shiba 256 Square Building 8F, 2-5-6 Shiba, Minato-ku, Tokyo,
105-0014, 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, JapanSHANGHAI JINDUN SPECIAL VEHICLE EQUIPMENT CO., LTD.
No.1515, Lizheng Road, Shuyuan Town, Pudong New Area,
Shanghai, China, 201304
NANJING CHENGUANG MORITA ENVIRONMENT PROTECTIONSCIENCE & TECHNOLOGY CO., LTD
No.188 Tianyuanzhong Road, Jiangning Economic & TechnicalDevelopment Zone, Nanjing, China, 211100
SICHUAN MORITA FIRE SAFETY APPLIANCES CO., LTD
No.8, Xinhua Avenue, Chengdu, Cross-Straits Technological,
Industry Park, Wenjiang District, China, 611130
MORITA HOLDRICH (HONG KONG) COMPANY LIMITEDRm, 1911CC Wu Building, 302-8 Hennessy Rd., Wan Chai, Hong Kong

Executives
President
Director
Director
Director
Director
Full-Time Corporate Auditor
Full-time Corporate Auditor
Full-time Corporate Auditor
AuditorCorporate Executive Oﬃcer
Corporate Executive Oﬃcer
Corporate Executive Oﬃcer
Corporate Executive Oﬃcer

Masahiro Nakajima
Yukihiro Maehata
Kenichi Kitamura
Kazuhiro Tsuchiya
Kazuｍi Kawaguchi
Eiji Asada
Atsushi Sasaki
Hisao Hayakawa
Kazuyoshi Matsumura
Hiroko Urano
Naohisa Sakamoto
Shinichi Kanaoka
Shinya Murai

M O R I T A R E P O R T 2 0 12

14

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 31st
Interim 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
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（Postal Address）

Stock Transfer Agency Department, Sumitomo Mitsui Trust Bank, Limited
1-10 Nikko-cho, Fuchu-shi, Tokyo 183-8701（Telephone Inquiries）+81-120-176-417（Internet Website URL） http://www.smtb.jp/personal/agency/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 special
account, 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.

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