MORITO CO.,LTD
Prime Market of TSE : 9837

Presentation Materials
for the First Quarter of Fiscal Year Ended
November 30, 2022, Financial Results

April 2022
©2022 MORITO CO.,LTD.

1.

FY2022.11 1Q Financial Results

2.

FY2022.11 1Q Business Overview

3.

Business Topics

4.

Shareholder Returns

1©2022 MORITO CO.,LTD.

FY2022 1Q Highlights･ Remained affected by automakers' production
cutbacks and stoppages due to semiconductor
shortages, soaring raw material prices andprocurement difficulties, delays in overseas
transportation, and rising transportation costs.
･ Apparel business for medical wear and working wear
remained firm.
･ In a YoY comparison, net sales +8%, operating profit+28%, net income +55%.

･ 1Q net sales, operating profit, ordinary profit, and net
income hit all-time highs since the start of quarterly
disclosure.
2©2022 MORITO CO.,LTD.

FY2022 1Q Summary of Financial Results（Million JPY）

2021 1Q

2022 1Q

10,6292,795

11,561
3,058

26.3%

26.5%

2,321

2,448

Cost ratio

21.8%

21.2%

Operating profit

473

610

Operating profit
ratio

4.5%

5.3%

Ordinary profit

485655Ordinary profit ratio

4.6%

5.7%

Net income288449

Net income ratio

2.7%

3.9%

Net sales
Gross profit
Gross profit ratio

Cost

3Increase/Decrease

Y/Y+932+263

+8.8%
+9.4%

+127

+5.4%

+137

+28.9%+170+35.0%+161+55.6%©2022 MORITO CO.,LTD.

2022FY 1Q

Net Sales

Net sales： 11,561 million JPY
Y/Y： +932 million JPY （+8.8%）
Although the transportation business has been affected by thesemiconductor shortage, the apparel business has grown in Japan andoverseas.
Japan7,912 million JPY

Y/Y +565 million JPY （+7.7%）

10,62911,561Asia

2,212 million JPY

Y/Y +129 million JPY （+6.2%）

2021

2022

Europe & the U.S. 1,436 million JPY
Y/Y +238 million JPY （+19.9%）（million JPY）

4©2022 MORITO CO.,LTD.

2022FY 1Q Quarterly Financial Trends
FY2022 1Q net sales was higher than FY2019 1Q when there was noCOVID-19.
13,00012,00011,00010,000

9,000
8,000
7,000

6,000
5,000
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q（Million JPY）

20182019

2020
52021

2022

©2022 MORITO CO.,LTD.

FY2022 1Q Quarterly Financial Trends
FY2022 1Q net sales and operating profit were the highest firstquarter results since the start of quarterly disclosure.
(Million JPY)
12,000

1Q売上高
1Q
net sales

1Q営業利益1Q operating income

1,000

10,000

800

8,000

600

6,000

400

4,000

200

2,000

0(200)

02009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
6©2022 MORITO CO.,LTD.

FY2022 1Q Gross Profit
Gross profit： 3,058 million JPY
Increase in net sales
Improvement of profit ratio

Y/Y： +263 million JPY（+9.4%）（Million JPY）
Increase/

2021 1Q 2022 1Q Decrease

2,795

2021

3,058

2022

Y/Y

Net sales

10,62911,561+932+8.8%

Gross profit

2,795

3,058+263+9.4%

Gross profit
ratio

26.3%

26.5%

2,321

2,448+127+5.4%

473

610

+137 +28.9%

485

655+170 +35.0%

288

449

+161 +55.6%

Cost
OperatingprofitOrdinary
profit
Net income

7©2022 MORITO CO.,LTD.

FY2022 1Q Trends in Net Sales & Gross Profit Ratio
Despite soaring raw material prices and transportation costs, acertain level of gross profit ratio has been maintained by pricepass-through.
1Q Net Sales

50,000

4Q Total Net Sales

Gross Profit Ratio

30.0%

40,00028.0%

30,000予Forecast
定

26.0%

20,00024.0%

10,00022.0%

0（Million JPY）

20.0%
2013

2014

2015

2016

2017

2018

82019

2020

2021

2022

©2022 MORITO CO.,LTD.

FY2022 1Q Operating Profit
Operating profit： 610 million JPY
Y/Y ： +137 million JPY （+28.9%）
Increase in gross profit ratio
Decrease of cost
（Million JPY）
Increase/

2021 1Q 2022 1Q Decrease

473

2021

610

2022

Y/YNet sales

10,62911,561+932+8.8%

Gross profit

2,795

3,058+263+9.4%

Gross profit
ratio

26.3%

26.5%

Cost

2,321

2,448+127+5.4%

Cost ratio

21.8%

21.2%

Operatingprofit

473

610

Operating profit
ratio

4.5%

5.3%

Ordinary profit

485

655

+170 +35.0%

Net income

288

449

+161 +55.6%

9+137 +28.9%©2022 MORITO CO.,LTD.

FY2022 1Q Ordinary Profit

Ordinary Profit ： 655 million JPY
Y/Y： +170 million JPY（+35.0%）
Increase in operating profit & non-operating profit
Decrease of non-operating expenses（Million JPY）
Increase/

2021 1Q 2022 1Q Decrease

485

655

Net sales

10,62911,561+932+8.8%

Gross profit

2,795

3,058+263+9.4%

Gross profitratio

2,321

2,448+127+5.4%

473

610

4.5%

5.3%

485

655

4.6%

5.7%

Net income

288449Net income ratio

2.7%

3.9%

Cost
Cost ratio

Ordinaryprofit
Ordinary
profit ratio

2021

2022

Y/Y

10+137 +28.9%+170 +35.0%+161 +55.6%©2022 MORITO CO.,LTD.

FY2022 1Q Net Income
Net Income： 449 million JPY

Y/Y： +161 million JPY （+55.6%）

Increase in ordinary profit(Million JPY）
Increase/

2021 1Q 2022 1Q Decrease

288449Net sales

10,62911,561+932+8.8%

Gross profit

2,795

3,058+263

+9.4%

Cost
OperatingprofitOrdinary
profit2,321

2,448+127+5.4%473

610+137 +28.9%485655+170 +35.0%

4.6%

5.7%

288

449

2.7%

3.9%

Ordinary
profit ratio

Net income

2021

2022

Y/Y

Net income
ratio

11+161 +55.6%©2022 MORITO CO.,LTD.

FY2022 1Q Balance Sheet(Million JPY）

2021 4Q

2021 4Q

2022 1Q

Liabilities

AssetsCurrent
liabilities
Current
assets2022 1Q

7,507

7,557
(50)

26,957

26,870

Fixed liabilities

4,5154,353(▲ 162)(-87)

Total liabilities

12,023

11,911(▲ 112)

純資産の部

Shareholders’equity31,47731,281(▲ 196)

Fixed assets

18,980

Othercomprehensive
income18,848(-132)

Deferred assets

02,3812,470(89)0Total net assets

33,94133,807(0)Total assets

45,938(▲ 107)45,718

Liabilities andnet assets(-220)

Equity ratio
1245,93845,71873.8 ％（2021FY4Q(▲ 220)73.7 ％）©2022 MORITO CO.,LTD.

1.

FY2022.11 1Q Financial Results

2.

FY2022.11 1Q Business Overview

3.

Business Topics

4.

Shareholder Returns

13©2022 MORITO CO.,LTD.

FY2022 1Q Net Sales by Regions(Million JPY）

Asia

Japan

7,347

Europe & the U.S.

7,912

2,212

2,083

2021
Y/Y

2022

2021

2022

1,198

1,436

2021

2022+565 million JPY

Y/Y ＋129 million JPY

Y/Y +238 million JPY（+7.7%）（＋6.2%）（+19.9%）14©2022 MORITO CO.,LTD.

FY2022 1Q Net Sales by Regions（Japan）
Despite the semiconductor shortage, the apparel division isrecovering, and business-related sports have been firm.
10,000・Increase of the accessories for working
wear and medical wear sold in Europe andthe U.S.
・Increase of the accessories for sportswear(Million JPY）

9,000
8,000
7,0006,000

・Increase of the products for
one-coin shops

5,000
4,000
3,000

・Increase of the construction
safety products

2,000
1,000

・Increase of the products related tosnowboarding and surfing

0１Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q
2019

・Increase of the automotive interior
components
1520202021

2022©2022 MORITO CO.,LTD.

FY2022 1Q Net Sales by Regions（Asia）
In China and Hong Kong, the apparel division increased by theacquisition of new orders, etc.
The transportation division decreased due to adjustments resulting
from production transfers between manufacturers' plants.
(Million JPY）

2,500

・Decrease of automotive interiorcomponents to Japanese automotive
manufacturers

2,000・Increase of the accessories for working
wear sold in Europe and the U.S.

1,500

1,000

500

0
１Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q
2019162020

2021

2022

©2022 MORITO CO.,LTD.

FY2022 1Q Net Sales by Regions（ Europe & the U.S. ）The apparel division has remained firm, such as working wear.
In the transportation division, semiconductor shortages have been
affected.
(Million JPY）
1,800

・Increase of accessories related toworking wear and casual wear

1,600

1,400
1,200・Decrease of automotive interiorcomponents to Japanese automotive
manufacturers

1,0008006004002000１Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q
201917202020212022©2022 MORITO CO.,LTD.

FY2022 1Q Net Sales by Regions（Quarterly）(Million JPY）

2022FY
１Q

Composition

Increase/
Decrease

Y/YJapan

7,912

68.4%

+565+7.7%

Asia

2,212

19.1%

+129+6.2%

Europe&the U.S.

1,43612.4%+238+19.9%

Total

11,561100.0%+932+8.8%

2021FY
１Q２Q

３Q

４Q

Total

Composition

Increase/
Decrease

Y/YJapan

7,347

7,291

7,329

8,262

30,22969.3%+1,419

+4.9%

Asia

2,083

1,996

1,884

2,091

8,054

18.5%

+829

+11.5%

Europe&the U.S.

1,198

1,309

1,364

1,482

5,353

12.3%

+662

+14.1%

Total

10,62910,596

10,577

11,834

43,636100.0%+2,909+7.1%

18©2022 MORITO CO.,LTD.

FY2022 1Q Sales Composition by Region＜2021 1Q＞

＜2022 1Q＞

Europe &Europe &the U.S.

the U.S.

11%

12%

Asia

Asia
20%

19%

Japan

Japan
69%

69%

19©2022 MORITO CO.,LTD.

FY2022 1Q Sales Composition by Region &Business＜2021 1Q＞
＜2022 1Q＞
Asia

43%

Europe &Europe &Asia

the U.S.
12%JapanJapan

Japan 31％

55%

56％

the U.S.

49%

46%
Asia
4%

TR

Asia

TR

21%

AP

4％

17%

PD

40%

39%

Japan

13％

AP

Asia

PD

23%

39%

44%
Asia
28％

Europe &Japanthe U.S.

96%

22%

AP：Apparel

PD：Product20Japan

Europe &96％

the U.S.
23％

TR: Transportation©2022 MORITO CO.,LTD.

2022FY 1Q

Forecast & Progress(Million JPY）

FY2022 FullYear Forecast

2022FY 1Q

Net sales

11,561
610

45,000
1,800

5.3%

3.6%

655

1,850

Ordinary profit ratio

5.7%

4.0%

Net income

449

1,450

3.9%

2.4%

Gross profit
Gross profit ratio

Ordinary profit

Net income ratio

2021FY 1Q

Net sales

2021FY 4Q

43,636
1,619

4.5%

3.7%

485

1,834

Ordinary profit ratio

4.6%

4.2%

Net income

288

1,407

2.7%

3.2%

Gross profit ratio

Ordinary profit

Net income ratio

21

25.7%
33.9%
35.4%
31.0%

Progress

10,629473

Gross profit

Progress

24.4%
29.2%
26.4%
20.5%©2022 MORITO CO.,LTD.

1.

FY2022.11 1Q Financial Results

2.

FY2022.11 1Q Business Overview

3.

Business Topics

4.

Shareholder Returns

22©2022 MORITO CO.,LTD.

Morito Group Project to Develop Eco-Friendly Products
Apparel BusinessAs part of our efforts to develop eco-friendly products, we developed OceanCurrent®, a fabric made with materials recycled from discarded fishing nets.
Using this fabric, we made a premium line of Kobe Shoes®, For The Blue
Collection.

Morito booth at the 171stJapan Grand Shoes Collection& Nationwide Sandals Fair
Summer 2022

For The Blue Collection
Ocean Current®
23©2022 MORITO CO.,LTD.

Morito Group Project to Develop Eco-Friendly Products
Apparel & Product Businesses
Ocean Current®, the fabric used for Kobe Shoes®, is made entirely of theREAMIDE® fiber produced from recycled discarded fishing nets collected inJapan.
Using traceable materials, we ensure strict process control from the productionof recycled pellets to the making of the fabric and have plans to develop newfabrics in the future.
How Ocean Current® is madeSorting and compressing

Cleaning, cutting, heating, andpelletizing

Hokkaido area

Hokkaido

Ichinomiya, Aichi(Fishermen)(Partner factory)(Refinverse, Inc.)

Collecting discarded fishing nets

We ask local fishery cooperatives
and fishermen to collect and sort
old nets.

Collected nets are sorted bymaterial and compressed.

Discarded fishing nets are cleaned
and made into recycled pellets.
*Note:

Weaving

Yarn-making process takes place at anoverseas plant.

For reference: Ocean Current (100% REAMIDE™ fiber)

Fukui and other locations(Textile companies)

Weft
Discarded

The yarn produced from Refinverse’s

fishing net

recycled pellets is woven into a fabricnylon yarn

consisting of at least 40% REAMIDE™
fiber made from discarded fishing nets.

24

WarpDiscardedfishing netnylon yarn

©2022 MORITO CO.,LTD.

Strong Performance of Products Related toSnowboarding
Product Business
Strong sales of products related to snowboarding that attracted attention
during the Beijing Olympics(Popular snowboard brands)

25©2022 MORITO CO.,LTD.

New Knee Support Product, Poka RAKU,
Jointly Developed with Benesse Style Care
Product Business
We released Poka RAKU, a line of knee support products developed byincorporating the opinions of the residents and staff of a retirement home runby Benesse Style Care.
It is a senior-friendly thermal knee brace with just the right compression.
Gentle Karaforo Collection

Poka RAKU
Available at Morito Japan online store

26©2022 MORITO CO.,LTD.

1.

FY2022.11 1Q Financial Results

2.

FY2022.11 1Q Business Overview

3.

Business Topics

4.

Shareholder Returns

27©2022 MORITO CO.,LTD.

Basic Dividend Policy

Maintain aRealize
dividend on
continuousDividend
equity (DOE)
dividend
payout ratio ofof 1.5%
payments
50%more inrelation to profit
attributable to ownersof parent is thestandard※※In a fiscal year with a significant
fluctuation in after-tax profit attributableto owners of parent due to special
factors such as extraordinary income orlosses, the dividend amount will bedetermined in consideration of thecorresponding impact.

※The Company has repurchased up to 900,000 shares during the period from Sep. 2021 to Aug.
2022. In Aug. 2022, the Company plans to cancel 800,000 shares. From the perspective ofstriving to further enhance shareholder returns, after considering factors such as theCompany’s earnings and expenditure balance as well as the share price level, the Company will28
continuously review the need to flexibly.
©2022 MORITO CO.,LTD.

Trends of Dividend, Dividend Payout Ratio &DOE
Basic Dividend Policy since 2017FY■Annual Ordinary Dividend

35.0

Listed on 1st TSE
Included 6.0 JPY as
Commemorative
Dividend(JPY)
Commemorative Dividend
（JPY）

30.0

■Net Income（Million JPY）

110 years since
established
Included 1.0 JPY as
Commemorative
Dividend

Increase year-end
dividend (Forecast) by8.0 yen

25.0

20.0

15.0

10.0

5.0

0.0
2022

2016

2017

20182019

2020

2021

Net income（Million JPY）

11.8

33.0

12.5

14.0

4.7

14.014.5

Annual dividend per share（JPY)

17.0

28.0

25.0

26.0

18.0

26.0

27

Interim dividend per share（JPY）

8.0

14.0

12.5

13.0

13.25

9.0

13.5

Year-end dividend per share(JPY）

9.0

14.0

12.5

13.0

4.75

17.0

13.5

Dividend payout ratio（％）

41.0

23.5

54.7

50.8

104.8

50.6

50.8

ＤＯＥ（％）

1.69

2.42

2.13

2.22

1.53

2.2

2.2

※（Forecast）※ The dividend payout ratio for the fiscal year ended November 30, 2017 is 23.5% in the table, but based on theordinary dividend of 22 yen excluding the commemorative dividend and the net income attributable to shareholdersof the parent company excluding extraordinary gains and losses, the dividend payout ratio is more than 50%.
29©2022 MORITO CO.,LTD.

Disclaimer
This handout has been prepared for only information purposes and made notintended to solicit investment.
Although this handout is made with extreme care, its completeness cannot beguaranteed.
We assume no responsibility whatsoever for any damages resulting from thecontents.
The financial results forecasts and forward-looking in this presentation are judged
by information known as of the day of presentation and contains some potential
risks and uncertainties.
Therefore, please be aware that the content of the forecast may differ significantly
from actual results, due to various factors such as change of business environment.

Contact
MORITO CO.‚ LTD. General Affairs Dept. IR & Stock Sect.
4-2-4,MINAMI HOMMACHI, CHUO-KU, OSAKA 541-0054 JAPANE-mail：ir@morito.co.jp
30©2022 MORITO CO.,LTD.