Business Report

To Shareholders and Investors

InterimBusiness Report

Securities Identification Code: 6455

for the87 TermthFrom April 1, 2019 to September 30, 2019

Top Message

Greeting

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.

We have recently established our new Mid-term Plan “MoritaReborn 2025”, which sets its final fiscal year as fiscal 2025. In
this plan, we set our basic policies as "increasing profitability ofexisting business", "cultivating and expanding overseas
businesses and new businesses", "enhancing basic researchcapabilities and new product development", "developing
innovative human resource" and "promoting CSR activities".
We will positively implement these policies in order tobecome a global company providing comprehensive disasterprevention solutions. With all our energy, we will continue
working on becoming a company group widely trusted bysociety, so we sincerely wish for your continuous support.

Masahiro Nakajima, Chairman and CEO
Kazumi Ogata, President

Overview of the first half of 87th TermNet sales¥31,678

millionOperating income

Ordinary income

Net income attributable toowners of parent company¥1,424¥1,557¥2,065

millionmillionYear on year

Year on year

Year on year

Year on year

DownUpUpUp

0.8%

30.3%

During the second quarter of FY2019 under review, the futureof Japan’s economy is still unpredictable, due to concerns about
worldwide economic slowdowns owing to the trade conflict
between the U.S. and China, and the sluggish Chinese economy.
In such a business environment, our group has been working
on various measures to improve our enterprise value in light of
the newly established Mid-term Plan “Morita Reborn 2025”.

12.9%

million183.5%

With respect to our business performance, net sales decreasedby ¥246 million from the previous year to ¥31,678 million(-0.8%). On the other hand, operating income increased by ¥331
million to ¥1,424 million (+30.3%), and ordinary income, by ¥178
million to ¥1,557 million (+12.9%), and quarterly net income
attributable to owners of parent company, by ¥1,336 million,
due to the sale of fixed assets (the former Tokyo head office), toreach ¥2,065 million (+183.5%).

Morita NewsThe “+ Home Fire Extinguisher” from the consumer disaster prevention
brand +maffs received the “2019 Good Design Best 100” award.

Fire Protection Equipment& Systems Business

The “+ Home Fire Extinguisher” is the first product from the disaster prevention brand +maffs by MORITA MIYATA CORPORATION, which focuses on
consumer lifestyles under the concept of “Take disaster prevention into your lifestyle”. The product received the “Good Focus Award [Disaster Prevention &Recovery Design]” at the “2019 Good Design Best 100” awards, hosted by the Japan Institute of Design Promotion. This awards top 100 products that havereceived notably good reviews from juries of the Good Design Award hosted by the same institution.

About the award-winning product: “+ Home Fire Extinguisher”
The “+ Home Fire Extinguisher” is the first product from the +maffs brand, which was launched in January 2019 as a brand featuring consumer-friendly
products. The product is for home use, with simple design and matte texture of its body. This enables the product to blend into living environments,
meeting the brand concept of “Take disaster prevention into your lifestyle”.
Juries commented, “The simple modification of changing the color of the fire extinguisher from red to black and white isa big step forward in creating harmony with the living space. There have been a preconceptions that fire extinguishers
must be red in order to grab visual attention. I feel like we have just accepted fire extinguishers to be red because that is
the way they are. Innovation like this may happen in other areas with other products. The development of this productmay be a good trigger for changing many other preconceptions we have.”

About the “Good Focus Award [Disaster Prevention & Recovery Design]”
The Good Focus Award [Disaster Prevention & Recovery Design] is given to outstanding designs
which contribute to the prevention of and the recovery from natural disasters, chosen from allaward-winning objects of the Good Design Award 2019.

The foam shower “KINUAMI”, which treats the entire body with warm,
natural silk foam, received the “Good Design Award 2019”.

Fire Protection Equipment& Systems Business“KINUAMI” is a foam shower with a novel concept—it generates rich foam for a new bathing
experience. The product was developed jointly by MORITA MIYATA CORPORATION and the housing
equipment sales corporation NITTO CERA Corporation, and received the “Good Design Award2019” hosted by the Japan Institute of Design Promotion.

About the award-winning “KINUAMI”"KINUAMI" is a “body treatment” shower that can treat the skin after washing. Warm and rich
“KINUAMI foam”, compounding ingredients from natural silk, is automatically discharged from ashower head and luxuriously wraps and packs the whole body of a user.
The “KINUAMI” project launched using Japan’s largest crowdfunding website “MAKUAKE” on March 27, 2019, to raise funds for delivering the product tousers and started accepting advance reservations. Within about two weeks, the product sold out and the project met its goal, receiving many positive
reviews from buyers.
Currently, the project is under preparation for delivering the product to people who have supported in raising funds and is also under deliberation forcommercialization for the general public.

The press-type garbage truck “Press Master PB7” received
the “Good Design Award 2019”

Environmental Conservation
Vehicles Business

The press-type garbage truck “Press Master PB7”, developed by MORITA ECONOS CORPORATION
and is currently on sale, received the “Good Design Award 2019” hosted by the Japan Institute of
Design Promotion.

About the award-winning “Press Master PB7”
The “Press Master PB7” is a press-type garbage truck that makes waste collection more efficient,
alleviates workloads and improves safety. Lighting and display units have been put together on
the company’s unique high-mounted panel (loaded on the upper side in the rear) to improve
Press Master PB7
back area visibility and safety. A rear hatch is light enough for single-handed opening/closing.
Garbage trucks have an important role in keeping our daily lives and cities clean. The “Press Master PB7” aims to be a smart working vehicle with apowerfully functional and reliable design that can fit info townscapes. We hope that this vehicle will be recognized as “the reliable garbage truck to clean
the town” by local citizens and society and also enable workers to do their jobs with pride and joy.

O

Financial Highlights (Consolidated)
Operating income

Unit: Millions of yen

27,51631,925: Full-year

Unit: Millions of yen: First half

9,649

88,00091,52485,50285,06329,571: First half

(Forecast)

9,483

31,678950

2018.3(Forecast)

8,483

1,850

2017.3: Full-year

9,200

2019.32020.32017.3

Ordinary income

2018.3

1,093

1,424
2020.32019.3

Net income attributable to owners of parent company

Unit: Millions of yen: First half

: Full-year

Unit: Millions of yen: First half

: Full-year

7,300

10,12910,1049,030(Forecast)

9,600(Forecast)

6,040

6,391
5,741

2,065
2,052

1,242

2017.32018.3

1,379

2019.3

1,304

1,557
2020.32017.3664

728

2018.32019.32020.3

Performance by Segment
Fire Protection Equipment & Systems BusinessFire Fighting Vehicles BusinessNet salesYear on year

Net sales

Operating income

Year on yearOperating income

8,003 million yen Down 18.0%
227 million yen

557 million yen

Down 55.7%

Although fire extinguisher sales
performed well, sales for the packaged
automatic fire extinguishing system“SPRINEX” were slow.

Net salesYear on year

5,134 million yen Up 6.0%
Operating income

401 million yen

Year on year

Up 59.2%

Product shipments increased steadily.

Year on year

Up 274.9%

Mainly due to the steady increase inoverseas sales.

25.3%
Net sales
composition

Environmental Conservation
Vehicles BusinessYear on year

15,929 million yen Up 6.5%16.2%
8.2%

50.3%
Recycling Machines BusinessNet sales

2,611 million yen
Operating income

221 million yen

Year on year

Up 10.6%

Year on year

Down 4.2%

While maintenance and services
decreased, sales of products
increased steadily.

peration Highlights

Net sales

Company Profile and Stock Information
Major Group Companies
Company Name
Inauguration ofBusiness
Establishment
CapitalOsaka Head Office
Tokyo Head OfficeType of Business

MORITA HOLDINGS CORPORATION
April 23, 1907
July 23, 1932
4,746 million yen
3-6-1 Dosho-machi, Chuo-ku, Osaka-shi, Osaka
5-36-7 Shiba, Minato-ku, Tokyo
Control/management of business activities ofgroup companies, and being entrusted withindirect management operations

Executives

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

Development, manufacturing and sales ofladder trucks, fire trucks, and specialty vehicles

3-5-7 Ariake, Koto-ku, Tokyo, 135-0063,
Japan

MORITA MIYATACORPORATION

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

1530 Konoda-cho, Funabashi-shi,
Chiba, 274-0081, JapanMORITAENVIRONMENTAL TECH Design and construction of waste recycling
facilities and other waste disposal facilities.
CORPORATION
Development, manufacturing and sales oflarge hydraulic equipment

Masahiro Nakajima
Kazumi Ogata
Director and Managing Executive Officer Kunio Morimoto
Director and Executive Officer
Shinichi Kanaoka
Director
Mitsuo Isoda
Director
Takao Kawanishi
Full-Time Corporate Auditor
Eiji Asada
Full-Time Corporate Auditor
Atsushi Miyazaki
Auditor
Masaru Ota
AuditorShozo Nishimura
Chairman & CEOPresident

Shinya Murai
Naohisa Sakamoto
Mitsuru Ito

Managing Executive Officer
Executive Officer
Executive Officer

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

Aftercare service and maintenance of fire
trucks and of rescue equipment.
Development, manufacturing and sales ofelectronic applied machinery and information
processing machinery

MORITA TECHNOSCORPORATION

Teerivuorenkatu 28, FI-33300 Tampere,
BRONTO SKYLIFT OY AB Finland

Development, manufacturing and sales ofcombined platform ladders and aerial platforms

Distribution of Shares by Type of Shareholder
As of September 30, 2019

Information about the StockBusiness Year

April 1 to March 31

Annual General Meeting ofJuneShareholders
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 of Public Notice

Posted as electronic public notice on company website
https://www.morita119.com/kohkoku/index.html

Administrator ofthe 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(Telephone Inquiries)+81-3-3323-8222(Internet Website URL)

Securities companies 0.3%

Treasury shares 3.4%
Other Japanese
corporations
8.2%
Non-Japanese
corporations
15.5%

Total

46,918,542
sharesIndividuals/others
28.6%

Financial institutions
44.0%

Top 10 Shareholders

As of September 30, 2019Name

No. of shares

The Dai-ichi Life Insurance Company, Limited

3,265Japan Trustee Services Bank, Ltd. (Trust account)

2,260

https://www.smtb.jp/personal/agency/index.html

Morita Trading-Partner Shareholding Association

2,205

Stock Listing

Tokyo Stock Exchange

Mizuho Bank, Ltd.

2,087

Number of shares per unit

100 shares

Sumitomo Mitsui Trust Bank, Limited

2,082[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, pleasecontact the telephone 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 telephoneinquiry number listed above.

MUFG Bank, Ltd.

2,048

Sumitomo Mitsui Banking Corporation

2,007

AIR WATER INC.

1,730

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

1,628

JP MORGAN CHASE BANK 385632
Notes:

3-6-1 Dosho-machi, Chuo-ku, Osaka-shi, Osaka, 541-0045

5-36-7 Shiba, Minato-ku, Tokyo, 108-0014

Tel. +81-3-6400-3480
https://www.morita119.com

869

1. Number of shares held is rounded down to the nearest thousand shares.
2. The Company holds treasury shares numbering 1,588 thousand shares.

Osaka Head OfficeTel. +81-6-6208-1907
Tokyo Head Office(thousand)