Securities Identification Code: 6455

To Shareholders and Investors

Business Reportfor the84th Term

From April 1, 2016 to March 31, 2017

BusinT o p Me ssag eess

Repor

Greeting

Since our company was founded in 1907, we have shared thepath with the history of Japan’s firefighting technology
development over many years as a top manufacturer of fireengines to reach our 110th anniversary in April 2017. We
would like to express our deepest appreciation for the warm
support and patronage of all those concerned including
shareholders.
Morita Group has the slogan “Protecting Human Life andMother Earth” and develops the four businesses of fire fighting
vehicles, fire protection equipment & systems, recyclingmachines and environmental conservation vehicles whileworking hard on the themes of “protecting irreplaceable lifeand property from disasters” and “protecting the lush green
natural environment”. Furthermore, in January 2016, weacquired a Finnish company and this has allowed us afoothold for further development of our global business.

Morita Group promotes the creation of a work environmentthat allows each person to fully utilize their talents and ability
regardless of factors such as gender, nationality or age. In
particular, to promote women in the workplace, we areproactively working hard to improve our training and rules.
In addition, “exploiting new markets”, “increasing profitability ofexisting business”, “enhancing the R&D” and “carrying out
investment for sustainable growth”, as stated in the Mid-term
Plan established in fiscal year 2016, are now our basic policy
and we will continue to aim to make great strides, improve
corporate value and contribute to society.
We sincerely thank you for your continued support in thefuture.

Masahiro Nakajima, Chairman and CEOKazumi Ogata, President

Overview of 84th Term
Net sales

Operating income

Ordinary income

Net income attributable toowners of parent company¥85,063 million¥9,649 million¥10,129 million¥6,040 million

Year on year

Up 24.0%

Year on year

Up 28.4%

During this consolidated fiscal year under review, despite theJapanese economy showing signs of a modest recovery on
the back of various economic policies from the government,
uncertainty over the future still continues for such as the effecton the domestic economy due to fluctuations in stock prices
and exchange rates caused by factors that include aslowdown in the economy of emerging countries, the United
Kingdom’s exit from the European Union (EU) and policy
trends of the United States.
Under these circumstances, Morita Group has been working
on various measures towards improving corporate value as of
the first fiscal year of the Mid-term Plan “Morita Advance Plan1000”, which has its final year in FY 2018.
As a result of the fire fighting vehicle business performing

Year on year

Up 24.7%

Year on year

Up 33.1%particularly well, during this consolidated fiscal year underreview, net sales increased by ¥16,489 million compared to thesame period in the previous year to ¥85,063 million (+24.0%),
operating income increased by ¥2,131 million compared tothe same period in the previous year to ¥9,649 million(+28.4%), ordinary income increased by ¥2,006 million
compared to the same period in the previous year to ¥10,129
million yen (+24.7%), and net income attributable to ownersof parent company increased by ¥1,502 million compared tothe same period in the previous year to ¥6,040 million(+33.1%). We achieved our highest record for net sales,
operating income, ordinar y income and net income
attributable to owners of parent company.

tMorita News
New MVF Multi-Purpose Fire Fighting Vehicle with 13m Aerial Platform
Developed, Launched This Fiscal Year
Morita has developed a new model, which can be used for a four-wheel drivevehicle. It's “MVF Multi-Purpose Fire Fighting Vehicle with 13m Aerial Platform(MORITA VARIOUS FIGHTER)”, which can take various roles including fire
extinguishing, rescue and equipment storing on a single vehicle. This vehicle
was launched this fiscal year.
The MVF has a boom with a basket that reaches a height of approximately
13.7 m above ground level and approximately 2.1 m below ground level. It isequipped with an aluminum single-stage volute pump “MZI”, a 900 L
polypropylene tank and also a compressed air foam system (CAFS). The MVF is afire fighting vehicle that achieves more effective firefighting activities.
We will continue to strive for even greater technological innovation in the futureon the basic concept of securing firefighters' safety.

MVF Multi-Purpose Fire Fighting Vehicle with 13m Aerial Platform

Morita Econos Corporation Constructs New Factory in Hokusetsu Sanda No.2
Techno Park, Sanda City, Hyogo Prefecture
Our company has constructed a new factory in the Hokusetsu Sanda No.2 Techo
Park in Sanda City, Hyogo Prefecture and Morita Econos Corporation, which
manufactures and sells environmental conservation vehicles, began operationfrom May this year.
The new factory, with a site area of approximately 63,000 m2, is a factory that canconsistently produce using a seamless process from module manufacture toundercoating, assembly and inspection, and also consistently manage incoming
goods such as chassis, parts, and components with the aim of maximizing
improvements to productivity.
We have been developing technology on the basis of “always seek thoroughusability and safety with consideration for actual use”. In recent years, withconsideration for the usability and safety of garbage trucks, we have beendeveloping such vehicles that seek functional beauty and have received highpraise from many customers and users. Further to this, news such as being
awarded the “iF DESIGN AWARD”, a famous global design award, has spreadoverseas.
Due to the operation of the new factory, we plan to increase the garbage truck
production volume by 25% and reduce the cost of each truck by 10% or greater.
Morita Group has gathered together the three companies of Morita
Corporation, Morita Technos Corporation and Morita Econos Corporation in theSanda Techno Park. This will raise the group’s overall strength so that we will
make great advances as a global Morita.

Environmental Conservation
Vehicles Business

Morita Econos Corporation new factory

Press-type garbage truck “Press Master”

Packaged Automatic Fire Extinguishing System Type II “SPRINEX mini” Series
Morita Miyata Corporation has launched a new model “CPW13094” as thepackaged automatic fire extinguishing system type II “SPRINEX mini” series since
January this year. The system has been approved as a substitute for sprinkler
systems for small-scale welfare facilities with a total floor space of less than 275 m2.
The new model “CPW13094” is equipped with more fire extinguishing agents sothat it can now be applied for buildings where wooden materials such as fancy
plywood (which do not stand for quasi-incombustible) might be used forinteriors. Existing “SPRINEX mini” series are not applicable for such materials. The
new container for fire extinguishing agents becomes much smaller to make itwell fit in any room.
Three types of “SPRINEX mini” series have been launched since April 2016 andhave been providing a lower installation cost while having the same firefighting
and fire suppression performance as those of sprinkler systems. It has received
high praise due to its easy installation. We have now added the “CPW13094” tothis lineup, which makes the system applicable for more building conditionsand more installation patterns.

Fire Fighting
Vehicles BusinessFire Protection Equipment &Systems Business

Packaged Automatic Fire Extinguishing System Type IISPRINEX mini “CPW13094”

O

Financial Highlights (Consolidated)

Unit: Millions of yen

Ordinary income

Net income attributable toowners of parent company

Unit: Millions of yen

Unit: Millions of yen

6,040

85,063
71,666

71,943

10,12968,574
8,375

2015.32016.32017.32014.3

4,537

2015.32016.3

3,527

6,983

2014.3

4,709

8,123

2015.32016.32017.32014.3Return on equity

Shareholders’ equity ratio

Interest-bearing liabilitiesUnit: %Unit: %

Unit: Millions of yen

11.3
10.2

51.1

50.2

52.7

13,682

13,7352016.32017.3

10,820

9.1

8.7

2014.3

55.3

2017.3

6,502

2015.32016.32017.32014.32015.32016.32017.32014.32015.3

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

Net salesYear on year

Year on year

18,197 million yen Down 8.7%

51,979 million yen Up 58.4%

IncomeIncome

1,229 million yen

Year on year
Down 31.0%

Though fire extinguishers
business has been performing
well, sales and income bothdecreased due to the effec tof car r ied over gover nment
subsidy to the next fiscal year
for the Packaged Automatic Fire
Extinguishing System “SPRINEX”.

Environmental Conservation Vehicles BusinessNet salesYear on year

7,175 million yen

21.4%
12.3%
5.2%

Net Sales
Composition

61.1%

Sales and income both increased
as a result of contribution
from BRONTO SKYLIFT OY
AB per formance, our new
c o n s o l i d a t e d s u b s i d i a r y, i naddition to the increase indomestic market share.

Recycling Machines BusinessNet sales

10,503 million yen Up 6.5%

4,383 million yen

IncomeIncome

1,231 million yen

Year on year
Up 8.5%

Sales and income both increased
as a result of continued good
performance of product ordersand sales.

Year on year
Up 71.8%

49 million yen

Year on year
Down 26.4%
Year on year
Down 88.3%

Despite focusing on sales ofparts and maintenance, sales andincome both decreased due tothe effect of reduced productorders.

peration Highlights

Net sales

Company Profile and Stock Information
Major Group Companies
Company Name

MORITA HOLDINGS CORPORATION

Inauguration ofBusiness

April 23, 1907

EstablishmentJuly 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

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

MORITA CORPORATION

Development, manufacturing and sales of laddertrucks, fire trucks and other types of fire trucks andspecialty vehicles

Shiba256 Square Building 8F, 2-5-6 Shiba,Minato-ku, Tokyo, 105-0014, Japan

MORITA MIYATACORPORATION

Development, manufacturing and sales of fire
extinguishing-related equipment, mainly of fire
extinguishers, firefighting equipment and otherfire protection equipment

MORITA ENVIRONMENTAL
TECH CORPORATION

Executives
Chairman & CEO

Masahiro Nakajima

President

Kazumi Ogata

Director and Executive Vice President

Yukihiro Maehata

Director

Mitsuo Isoda

Director

Takao Kawanishi

Full-Time Corporate Auditor

Eiji Asada

Full-Time Corporate Auditor

Atsushi Sasaki

Full-Time Corporate Auditor

Yusuke TakanoAuditor

Masaru Ota

Managing Corporate Executive Officer

Shinichi Kanaoka

Managing Corporate Executive Officer

Shinya Murai

Corporate Executive Officer

Hiroko Urano

Corporate Executive Officer

Naohisa Sakamoto

1530 Konoda-cho, Funabashi-shi, Chiba,274-0081, Japan
Design and construction of waste recycling
facilities and other waste disposal facilities.
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 equipment and materials for lifesaving.
Development, manufacturing and sales ofelectronic applied machinery and information
processing machinery

BRONTO SKYLIFT OY AB

Development, manufacturing and sales ofcombined platform ladders and mobile elevating
work platforms

Tampere City, Republic of Finland

Distribution of Shares by Type of Shareholder

Information about the StockBusiness Year

April 1 to March 31

Annual General Meeting ofJune
Shareholders
Reference Dates

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
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 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

As of March 31, 2017Securities companies 0.8%

Treasury shares 3.6%
Other Japanese
corporations
7.9%
Non-Japanese
corporations
12.1%

Total

46,918,542 shares
Financial institutions
43.9%

Individuals/others

31.8%

Top 10 Shareholders

As of March 31, 2017

Name

No. of shares (thousand)

The Dai-ichi Life Insurance Company, Limited

3,265
2,506

(Telephone Inquiries)+81-3-3323-8222

Morita Trading-Partner Shareholding Association(Internet Website URL)

http://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 sharesSumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

2,048

Sumitomo Mitsui Banking Corporation

2,007

Japan Trustee Services Bank, Ltd. (Trust account)

1,795

AIR WATER INC.

1,730

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

1,141

Morita Employees Shareholding Association

901[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 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

Notes:

1. ‌Number of shares held is rounded down to the nearest thousand shares.
2. ‌The Company holds treasury shares numbering 1,679 thousand shares.