To Shareholders and Investors
Business Report for the 81st Term
From April 1, 2013 to March 31, 2014

Protecting Human Life and Mother Earth

Securities Identification Code: 6455

Morita Topics
Birth of a new star, “MORITA MIYATA CORPORATION”
Taking the Fire Protection Equipments & Systems
Business to a new era
Morita Bohsai Tech Corporation and Miyata Industry Co., Ltd.
will join forces in operation from July 1 this year to form
“Morita Miyata Corporation” to cover the manufacture, saleand installation of fire extinguishers and fire fighting
equipment as part of Morita’s Fire Protection Equipments &Systems Business. Miyata Industry became a consolidated
subsidiary in November 2008, and the Morita Group had been
involved in the fire protection business with two brands,
however efforts to reduce redundant operations and improvebusiness efficiency across the entire group have been hastened.
There was also the need to bring about greater effects of groupcollaboration, as well as drastically increase competitive
capabilities within rapidly changing markets into the future.
The Altesimor an g e o f
accumulator
dry chemicalfire
extinguisherst h a t u s ealuminumcontainers fora light-weightand better
safety are now
available in acommercial
lineup to help
improve sales.
Improvements
have also been
made to the
SPRINEX01

M O R I TA R E P O R T 2 0 1 4

series of packaged automatic fire extinguishing equipment
designed for fire protection in nursing homes and medical
clinics where there has been spate of accidents caused by fire in
recent years. These all form part of development, manufacturing
and sales of products that play key roles in the industry as theleading manufacturer of fire protection equipment.
Morita also entered into a business tie-up with AIR WATER
INC. in February this year. Efforts are being made to increase
the available product lineup and number of distribution outlets,
including high value-added products from both company
groups sold through each other’s sales channels. Building acollaborative framework that allows joint development witheffective utilization of each company’s management resources,
as well as supplementing joint purchasing and other areas willlead to further development and growth of the fire protection
equipment business of both companies.

Construction of new Morita Technos Factory in
Hokusetsu Sanda Techno Park
Morita constructed a new factory in Hokusetsu Sanda Techno
Park located in Sanda City, Hyogo Prefecture, with groupcompany Morita Technos beginning operations there from
May this year. With a total floor area of 12,408 m2, the newfactory is capable of all operations related to fire engines, fromreceiving inspections to removal of equipment and devices,
disassemblyand cleaning,
repair andreplacementof degraded
or worncomponents,
painting andcompletion
inspections.
The factory
M O R I TA R E P O R T 2 0 1 402

is equipped to ensure safety and security into the future, as it isable to restore the function and performance of fire engines inservice around the country. Sufficient work space within thebuilding means ladder trucks are able to extend their ladders
even during poor weather outside, and is evidence of thecompany’s swift response and highest level of technology
employed at the factory.
The company’s control equipment division that was located in
Yao City in Osaka Prefecture has also been relocated to the
new factory. Technology ensuring optimum operability andsafety that was acquired through Morita’s fire truck control
equipment has been modified for use in general industry as
part of efforts to uncover new markets.

Bringing safer and easier-to-use designs to life
Morita Econos Corporation, which covers environmental
conservation vehicles, has developed three new models andalready started marketing them: Pack Master, a rotary extrusion
garbage collector; Powerful Master, a high-performance suction
truck; and Hi-Pre Cleaner, a high-pressure cleaning vehicle.
Since being established in 1948, Morita Econos Corporation has
been involved in the development, manufacture and sales ofvarious types of products such as sanitation vehicles, garbage
collection vehicles, high-pressure cleaning vehicles, high03

M O R I TA R E P O R T 2 0 1 4

performance suction trucks, sewage water recycling trucks, mud
suction trucks and home-visit bathing service cars, and provided
aftersales service for these products. These vehicles have been
active at sites around the entire country where they are essential
for day-to-day living. The underlying theme of recent
development is the desire for safer and easier-to-use designs
raised by customer using the vehicles on site.
The body capacity of the Pack Master rotary extrusion garbage
collector is the largest in its class at 5.2 m3, yet is designed with
one of the lowest profiles in its class at just 2,200 mm high.
The Powerful Master high-performance suction truck isdesigned to draw up and transport mud from sewers or street
gutters, as well as sand from construction sites. With a bodydesigned for driving with ease down narrow streets, and a large
3.0 m3 capacity tank, it is easy to use. Controls are also locatedin a single area to improve work efficiency and safety.
The Hi-Pre Cleaner high-pressure cleaning vehicle is designed
for cleaning out sewer pipes that are suffering from a drop in
d r a i n a g e f l ow, o rcleaning the inside ofresidential drainage
pipes, and has a large
2.9 m3 capacity tankwith a rotating hosereel that can swivel
about 180°. The hose
Pack Master rotary extrusion
position can be
garbage collector
adjusted to suitalmost any situation,
allowing hoses to beextended between thevehicle and work siteover the shortest
distance possible.
Morita ran a booth at“N-EXPO 2014
Powerful Master(New Environment
high-performance suction truck
Exposition 2014)”
M O R I TA R E P O R T 2 0 1 404

t h a t wa s h e l d a t
Tokyo Big Sight in
M a y, a n d t h eoutdoor exhibits ofthese vehicles drew
much acclaim fromindustry experts.
Hi-Pre Cleaner high-pressurecleaning vehicle

Taking a fire-fighting role” Commissioner of theFire and Disaster Management Agency Award
Releasing the coupling joints between hoses while fighting a fire
can cause the hoses to swing around wildly and threaten thesafety of the fire fighters. Mobility has been improved withincreases in fire protection technology in recent years, however
the issue of damage to hoses and coupling joints coming loose
remains. To combat this, Morita has developed a new releasemechanism, as the safety of the fire crew is paramount. The newmechanism can be used with existing coupling joints meaning
there is no need for any new equipment, a feature that willcertainly increase its uptake. This development earned Morita
the 2013 Commissioner of the Fire and Disaster Management
Agency Award “Excellence Award.” As one of the leading
companies in the fire protection industry, Morita will continue
to contribute to increased fire-fighting capabilities from a rangeof different perspectives.

05

M O R I TA R E P O R T 2 0 1 4

Message from Top Management
We would first like to extend our deep appreciation for yourcontinued support for the Morita Group. We are happy toreport on our operations through the release of our 81 st
earnings report.

Business Overview
During the consolidated fiscal year under review, the Japanese
economy showed signs of moderate recovery, in which there
was an improvement in corporate earnings and personal
consumption due to a weak yen and high stock prices as aresult of the government's and the BOJ's monetary and fiscal
policies. Still, however, uncertainties remained due to concerns
about the future of the economy including the impacts of theslowdown in emerging countries’ economies, an increase in
raw material prices and the consumption tax increase.
In this environment, the Group engaged in aggressive sales
operations while working to reduce our cost of goods and todevelop new products.
Due to steady performance in most of the segments, including
the Fire Fighting Vehicles Business, the Group’s net sales,
operating income, ordinary profit, and net income for the
consolidated fiscal year under review marked a record high forthe third consecutive fiscal year as follows: net sales increased¥4,525 million, on a year-over-year basis, respectively, to¥71,666 million (+6.7%); operating income increased ¥427
million to ¥6,694 million (+6.8%); ordinary profit increased¥553 million to ¥6,983 million (+8.6%); and net income
increased ¥659 million to ¥3,527 million (+23.0%) due to anincrease in ordinary profit, despite a subsidiary’s moving
expenses (¥1,110 million) being posted as an extraordinaryloss.

M O R I TA R E P O R T 2 0 1 4

06

Business Condition by Segment
Fire Fighting Vehicles BusinessNet sales in the Fire Fighting Vehicles Business increased¥2,446 million year on year to ¥35,906 million (+7.3%) due tothe expansion of market share through our success in dealing
with demand. Segment profit increased ¥450 million year on
year to ¥4,391 million (+11.4%).
Fire Protection Equipments & Systems BusinessNet sales in the Fire Protection Equipments & Systems Businessincreased ¥967 million year on year to ¥17,445 million (+5.9%)
due to the expansion of sales of fire extinguishers resulting from theadvance in demand under the revision of laws and ordinances, aswell as the steady sales performance of packaged automatic fire
extinguishing equipment. However, segment profit decreased ¥25
million year on year to ¥1,431 million (-1.8%).
Recycling Machines BusinessNet sales in the Recycling Machines Business increased ¥588
million year on year to ¥5,991 million (+10.9%) due to thesteady flow of orders and sales of products. Segment profit
increased ¥119 million year on year to ¥306 million (+63.8%).
Environmental Conservation Vehicles BusinessNet sales in the Environmental Conservation Vehicles Businessincreased ¥721 million year on year to ¥9,726 million (+8.0%)
due to the steady flow of orders and sales of leading products
including sanitary vehicles and garbage collectors. Segment
profit increased ¥80 million year on year to ¥685 million(+13.3%).
Bicycles BusinessNet sales in the Bicycle Business decreased ¥197 million year on
year to ¥2,596 million (-7.1%) due to the downturn in the lightroadster market despite growing sales of sports bicycles. Segment
loss was ¥128 million (a profit of ¥36 million was marked in theprevious consolidated fiscal year).
07

M O R I TA R E P O R T 2 0 1 4

Future Outlook
The Morita Group will strive to maximize company value by
boosting business competitiveness through optimal allocationof management resources.
The following are business challenges and policies we need toaddress:(1) Flexible response to market changes
We will strive to plan competitive strategies by
accurately understanding customer needs in order toquickly and flexibly respond to the market situation,
which is undergoing rapid change.
We recognize that our most important challenge is tocreate new growth areas by developing products with acompetitive advantage, which are unrivalled by any othercompanies, as well as by developing and creatingaccompanying business while ensuring company
earnings continuously grow.
(2) Promotion of structural reform
We will promote the following: reorganization ofove r l a p p i n g bu s i n e s s e s ; c l o s e ex a m i n a t i o n o f
u n d e r p e r f o r m i n g bu s i n e s s e s ; a n d p r o d u c t iv i t y
improvement and personnel optimization including
back-office sections.
(3) Investment for sustainable growth
We will make timely decisions on capital investment,
business collaboration and M&A through appropriate
allocation of the Group’s management resources, and, in
addition, will put our efforts into acquiring anddeveloping human resources who will lead the next
generation.
In conclusion, we would like to take this opportunity to ask
our shareholders for continued support and encouragement.
June 2014

Masahiro Nakajima
President

M O R I TA R E P O R T 2 0 1 408

Financial Highlights (Consolidated)●Net Sales●Ordinary Profit(Millions of yen)
7,000(Millions of yen)
80,00070,00060,00059,74963,694

67,140

6,983
6,429

71,666

6,000
5,256

5,000

50,000

4,614

4,000

40,0003,000

30,0002,000

20,0001,000

10,000002011.32012.32013.32014.3●Net Income

2012.32013.32014.3●Return on Assets(Millions of yen)
4,000

(%)
9
3,527

3,500

8.5
8.2

3,000
2,500

2011.3

2,803

2,867

8

2,230

2,000

7.0

7
6.4

1,500
1,000

6

500
0

2011.32012.32013.32014.3●Shareholders’ Equity Ratio

5

2011.32012.32013.32014.3●Interest-Bearing Liabilities(Millions of yen)(%)

20,000

60

50

48.6
44.9

50.2

44.8

15,00012,568

11,708

10,820
9,375

10,000

40
5,000

30

09

0
2011.32012.32013.3

M O R I TA R E P O R T 2 0 1 4

2014.32011.32012.32013.32014.3

Consolidated Summary●Consolidated Balance Sheets

Morita Holdings Corporation and Consolidated Subsidiaries
As of March 31, 2013 and 2014
Millions of yen

2013

2014

Assets¥ 40,404¥ 42,081

Property, plant and equipment

28,53830,402Intangible assets

1,206

1,571

Investments and other assets

7,984

11,499¥ 78,133¥ 85,553

Current liabilities¥ 26,908¥ 28,059

Long-term liabilities

12,027

13,382

Total liabilities

38,93541,441

Common stock

4,746

4,746

Additional paid-in capital

3,742

4,331

Retained earnings

31,55734,387

Current assets

Total assets
Liabilities

Net assets
Shareholders’ equity

Treasury stock, at cost
Total shareholders’ equity(1,056)(235)

38,98943,229961

1,816

Accumulated other comprehensive income
Unrealized gains on available-for-sale securities

94

Unrealized gains (losses) on revaluation of land

(1,774)(1,804)Foreign currency translation adjustments

(198)

287

Remeasurements of defined benefit plans

—

(557)

Total accumulated other comprehensive income(1,001)(254)

Deferred gains on hedges

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

1,209

1,135

39,197

44,111¥ 78,133¥ 85,553(Note) Figures less than 1 million yen are rounded down to the nearest 1 million yen.
M O R I TA R E P O R T 2 0 1 4

10

●Consolidated Statements of Income

Morita Holdings Corporation and Consolidated Subsidiaries
For the Years Ended March 31, 2013 and 2014
Millions of yen

2013

2014

¥ 67,140¥ 71,666

Cost of sales
Gross profit

49,837
17,30353,36818,297

Selling, general and administrative expenses
Operating income
Other income
Other expenses
Income before income taxes
Income taxes
Current
Deferred

11,037
6,266
624
2,081
4,808

11,603
6,694
716
1,683
5,726

2,342
(321)
2,020

2,781
(463)
2,318

Minority interests in losses of consolidated subsidiaries
Net income(79)¥ 2,867(119)¥ 3,527

Net sales

Yen

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

2013

2014

¥ 64.31—
16.00¥ 78.91—
18.00(Note) Figures less than 1 million yen are rounded down to the nearest 1 million yen.

●Consolidated Statements of Cash Flows

Morita Holdings Corporation and Consolidated Subsidiaries
For the Years Ended March 31, 2013 and 2014
Millions of yen

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year

2013

2014

¥ 5,240(1,813)(3,410)64
81
8,667¥ 8,748¥ 4,310(5,565)
1,939
90
776
8,748
¥ 9,525(Note) Figures less than 1 million yen are rounded down to the nearest 1 million yen.
11

M O R I TA R E P O R T 2 0 1 4

●Consolidated Statement of Changes in Net Assets(in Millions of yen)
Morita Holdings Corporation and Consolidated Subsidiaries
For the Year Ended March 31, 2014
Shareholders’ equity

Balance at beginning of year

Commonstock

Additional
paid-in
capitalRetainedearnings

Treasurystock, at
cost

Total
shareholders’equity

4,746

3,742

31,557(1,056)38,989Amount of change
Cash dividends

(757)

(757)

Net income

3,527

3,527

Acquisition of treasury stock
Disposal of treasury stock

(16)

(16)

838

1,426

588

Reversal of reserve forland revaluation

60

60

Net changes other thanshareholders’ equity
Total changes
Balance at end of year

—

588

2,830

821

4,240

4,746

4,331

34,387(235)

43,229

Accumulated other comprehensive income
Minority
Unrealized
Unrealized
Foreign Remeasure- interests in Total
gains on Deferred gains
currency
ments
ofconsolidated
net assets
available- gains on (losses) on
for-sale hedges revaluation translation defined subsidiaries
securitiesof land adjustments benefit plans

Balance at beginning of year961

9 (1,774) (198)— 1,209 39,197

Amount of change
Cash dividends(757)

Net income

3,527

Acquisition of treasury stock(16)

Disposal of treasury stock

1,426

Reversal of reserve forland revaluation60

Net changes other thanshareholders’ equity
Total changes

854

(4)

(30)

486 (557)

(74)

854

(4)

(30)

486 (557)(74) 4,913

Balance at end of year 1,816

4 (1,804)673

287 (557) 1,135 44,111(Note) Figures less than 1 million yen are rounded down to the nearest 1 million yen.
M O R I TA R E P O R T 2 0 1 4

12Company Profile
Overview
Company Name

MORITA HOLDINGS CORPORATION

Inauguration of Business

April 23, 1907

Establishment

July 23, 1932

Capital¥4,746mil

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 of group companies,
and being entrusted with indirect management operations

Group Companies

13

MORITA
CORPORATION

1-5 Techno Park, Sanda-shi, Hyogo, 669-1339, Japan

MORITAMIYATA
CORPORATION

1-1-1 Shimomachiya, Chigasaki-shi, Kanagawa,
253-8588, Japan

Development, manufacturing and sales of ladder trucks, fire
trucks and other types of fire trucks and specialty vehicles

Development, manufacturing and sales of fire
extinguishing-related equipment, mainly of fire
extinguishers, fire fighting equipment and other fire
protection equipment* MORITA BOHSAI TECH CORPORATION and MIYATAINDUSTRY CO., LTD. have merged as of July 1,
2014.

MORITAENVIRONMENTALTECHCORPORATION

1530 Konoda-cho, Funabashi-shi, Chiba,274-0081, Japan

MORITAECONOSCORPORATION

1-48 Jinmu-cho, Yao-shi, Osaka, 581-0067, Japan

MORITATECHNOSCORPORATION

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

Design of waste recycling facilities and other waste
disposal facilities. Development, manufacturing and salesof large hydraulic equipment
Development, manufacturing and sales of environmental
conservation vehicles such as sanitation vehicles andgarbage trucks

Aftercare service and maintenance of fire trucks and of
equipment and materials for lifesaving. Development,
manufacturing and sales of electronic applied machineryand information processing machinery

M O R I TA R E P O R T 2 0 1 4

ALUVO
1479-1 Kamikanzo, Iwata-shi, Shizuoka,
CORPORATION
438-0115, JapanKANSAI BODY WORKS 2-3 Techno Park, Sanda-shi, Hyogo,
CORPORATION
669-1339, Japan
MORITA U.G.
Shiba 256 Square Building 8F, 2-5-6
CORPORATION
Shiba, Minato-ku, Tokyo, 105-0014, Japan
MORITA ENGINEERING
1-48 Jinmu-cho, Yao-shi, Osaka 581CORPORATION
0067, Japan
HOKKAIDO MORITA
13-2-17 Naebo-cho, Higashi-ku, SapporoCORPORATION
shi, Hokkaido, 065-0043, JapanKAGOSHIMA MORITA
12-32, Matsubara-cho, Kagoshima-shi,
PUMP CORPORATION
Kagoshima, 892-0833, Japan
MORITA TOYO
1700-2 Konjinzuka, Sanagu-cho, Iga-shi, Mie, 518CORPORATION
0001, JapanMIYATA CYCLE
3-25-31 Nishishinbashi, Minato-ku, Tokyo, 105-0003, Japan
CO. LTD.
Development, manufacturing and sales of bicycles
No.1515, Lizheng Road, Shuyuan Town, Pudong
SHANGHAI JINDUN SPECIALVEHICLE EQUIPMENT CO., LTD. New Area, Shanghai, China, 201304

NANJING CHENGUANG MORITAENVIRONMENT PROTECTIONSCIENCE & TECHNOLOGY CO., LTD
SICHUAN MORITA FIRE
SAFETY APPLIANCESLIMITED COMPANY
MORITA HOLDRICH (HONG
KONG) COMPANY LIMITED

No.188 Tianyuanzhong Road, Jiangning
Economic & Technical Development Zone,
Nanjing, China, 211100
No.8, Xinhua Avenue, Chengdu CrossStraits Technological Industry Park,
Wenjiang District, China, 611130
16/F., The Peninsula Office Tower, 18 Middle
Road, Tsim Sha Tsui, Kowloon, Hong Kong

Executives
President
Director
Director
Director
Director
Full-Time Corporate Auditor
Full-Time Corporate Auditor
Full-Time Corporate Auditor
AuditorMasahiro Nakajima
Yukihiro Maehata
Kenichi Kitamura
Kazuhiro Tsuchiya
Kazumi Kawaguchi
Eiji Asada
Atsushi Sasaki
Yusuke Takano
Kazuyoshi Matsumura

Corporate Executive Officer
Corporate Executive Officer
Corporate Executive Officer
Corporate Executive Officer

Hiroko Urano
Naohisa Sakamoto
Shinichi Kanaoka
Shinya Murai
M O R I TA R E P O R T 2 0 1 4

14

Shareholder’s Memo
Information about the StockBusiness Year

April 1st to March 31st

Annual General Meeting Juneof Shareholders
Reference
Dates

Annual General Meeting of Shareholders - March 31stYear-end Dividend - March 31st
Interim Dividend - September 30th
Other dates published in advance as necessary

Posted on company website
Method of
Public Notice http://www.morita119.com/kohkoku/index.html
Administrator of the
Shareholders List

Sumitomo Mitsui Trust Bank, Limited
1-4-1, Marunouchi, Chiyoda-ku, Tokyo

Stock Transfer Agency Department, Sumitomo
Place ofClerical Office Mitsui Trust Bank, Limited
for the above 4-5-33, Kitahama, Chuo-ku, Osaka-shi(Postal Address)

Stock Transfer Agency Department, Sumitomo
Mitsui Trust Bank, Limited
2-8-4 Izumi, Suginami-ku, Tokyo, 168-0063(Telephone Inquiries) +81-120-782-031(Internet Website URL)

http://www.smtb.jp/personal/agency/index.html
Stock Listing

Tokyo Stock Exchange[Special Account]
For shareholders who did not use JASDEC (Japan Securities Depository Center, Inc.)
before the share certificates were computerized, an account (a special account) has
been opened with Sumitomo Mitsui Trust Bank, Limited, the shareholder registration
administrator. For details regarding the special account, notification of addresschange, and so on, please inquire using the contact information listed above.

[Notification of Address Change and Inquiries]
For shareholders who have an account at a securities firm, please contact the firm
where your account 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.
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

http://www.morita119.com