Consolidated Financial Results
for the Fiscal Year Ended November 30, 2021
[Japanese GAAP]
January 14, 2022
Company name: MORITO CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number: 9837
URL: http://www.morito.co.jp/hd_en/
Representative: Takaki Ichitsubo, Representative Director, CEOContact: Kiyomi Akui, Director, Senior Executive Officer, Division Manager of Corporate Administrative Division
and Division Manager of Business Management Division
Phone: +81-6-6252-3551
Scheduled date of Annual General Meeting of Shareholders: February 25, 2022
Scheduled date of filing annual securities report: February 28, 2022
Scheduled date of commencing dividend payments: February 28, 2022
Availability of supplementary briefing material on annual financial results: Available
Schedule of annual financial results briefing session: Scheduled (for securities analysts and institutional investors)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Fiscal Year Ended November 30, 2021 (December 1, 2020 to November
30, 2021)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Fiscal year ended
Million yen%
Million yen%
Million yen%
Million yen%
November 30, 2021
43,636
7.1
1,619
89.1
1,834
97.6
1,407
199.3
November 30, 2020
40,727(11.4)
856(50.6)
928(47.8)
470(66.5)(Note) Comprehensive income: Fiscal year ended November 30, 2021: ¥2,346 million [- %]Fiscal year ended November 30, 2020: ¥129 million [(78.0) %]Basic earnings
per share

Diluted earnings
per share

Return on equity

Ordinary profit
to total assets%
Fiscal year ended
Yen
Yen
November 30, 2021
51.41
4.3
November 30, 2020
17.17
1.5
(Reference) Share of profit (loss) of entities accounted for using equity method:
Fiscal year ended November 30, 2021: ¥65 million
Fiscal year ended November 30, 2020: ¥37 million(2) Consolidated Financial Position
Total assets
Million yen

Net assets

Operating profit
to net sales

%

%

4.1
2.0

3.7
2.1

Equity ratio

Net assets per share

Million yen%

Yen

33,914As of November 30, 2021
45,93832,015
As of November 30, 2020
43,699(Reference) Equity: As of November 30, 2021: ¥33,858 million
As of November 30, 2020: ¥31,958 million

73.7
73.1

1,240.70
1,167.21(3) Consolidated Cash Flows
Cash flows fromoperating activities

Fiscal year ended
November 30, 2021
November 30, 2020

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodMillion yen

Million yen

Million yen

Million yen

2,644
2,462

(401)
(16)

(1,380)(1,878)11,02010,052

2. Dividends
Annual dividends
1st
2nd
3rd
quarter-end quarter-end quarter-end
Fiscal year ended
November 30, 2020
November 30, 2021
Fiscal year ending
November 30, 2022
(Forecast)Year-end

Total

Yen

Yen

Yen

Yen

-

13.25
9.00

-

4.75
17.00

18.00
26.00

-

13.50

-

13.50

27.00

Total
dividends

Payoutratio(consolidated)

Yen Million yen

502
724

Dividends
to netassets(consolidated)

%

%

104.8
50.6

1.5
2.2

50.8

3. Consolidated Financial Results Forecast for the Fiscal Year Ending November 30, 2022 (December 1, 2021 toNovember 30, 2022)(% indicates changes from the previous corresponding period.)
Operating profit

Net sales
Million yen

Full year

45,000% Million yen

3.1

1,800

% Million yen

11.1

Profit attributable Basic earnings per
to owners of parent
share

Ordinary profit

1,850% Million yen

%

Yen

0.9

3.0

53.13

1,450

* Notes:(1) Changes in significant subsidiaries during the fiscal year under review (changes in specified subsidiaries resulting
in changes in the scope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates, and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
November 30, 2021: 30,800,000 shares
November 30, 2020: 30,800,000 shares2) Total number of treasury shares at the end of the period:
November 30, 2021: 3,510,000 shares
November 30, 2020: 3,420,060 shares
3) Average number of shares during the period:
Fiscal year ended November 30, 2021: 27,372,477 sharesFiscal year ended November 30, 2020: 27,379,940 shares* These consolidated financial results are outside the scope of audit by certified public accountants or audit firms.
* Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements herein are based on information currently available
and certain assumptions judged to be reasonable. Actual results may differ significantly from these forecasts due toa wide range of factors.
As for suppositions that form the assumptions for the forecast of financial results and cautionary notes concerning
the use thereof, please refer to “1. Overview of Business Results, etc. (4) Future Outlook” on page 4.
The Company and some of the Morito Group companies have introduced the “Japanese version of the employee
stock ownership plan (J-ESOP)” and the “officer remuneration board incentive plan (BIP) trust.” Consequently, theshares of the Company held by Custody Bank of Japan, Ltd. (trust account E) and The Master Trust Bank of Japan,
Ltd. (officer remuneration BIP trust account), respectively, are included in treasury shares.

Table of Contents
1. Overview of Business Results, etc. .................................................................................................................. 2(1) Overview of Business Results for the Period under Review ........................................................................ 2(2) Overview of Financial Position for the Period under Review ...................................................................... 3(3) Overview of Cash Flows for the Period under Review ................................................................................ 3(4) Future Outlook ............................................................................................................................................. 4(5) Basic Dividend Policy and Payments for the Period under Review and the Next Period ............................ 5
2. Overview of the Corporate Group .................................................................................................................... 6
3. Basic Stance Regarding Choice of Accounting Standards ............................................................................... 9
4. Consolidated Financial Statements and Primary Notes .................................................................................. 10(1) Consolidated Balance Sheets ..................................................................................................................... 10(2) Consolidated Statements of Income and Comprehensive Income ............................................................. 12(3) Consolidated Statements of Changes in Equity ......................................................................................... 15(4) Consolidated Statements of Cash Flows .................................................................................................... 17(5) Notes to the Consolidated Financial Statements ........................................................................................ 19(Notes on Going Concern Assumption) ..................................................................................................... 19(Additional Information) ............................................................................................................................ 19(Segment Information, etc.) ....................................................................................................................... 20(Per Share Information).............................................................................................................................. 22
5. Other Information ........................................................................................................................................... 24(1) Changes in Officers .................................................................................................................................... 24

1

1. Overview of Business Results, etc.
(1) Overview of Business Results for the Period under Review
In the fiscal year under review (from December 1, 2020 to November 30, 2021), despite expectations of an
upturn in business conditions with the progress of COVID-19 vaccinations, the business environment remained
unclear as the advent of a new variant of COVID-19 led to the renewed spread of the pandemic across the regions.
Amid such circumstances, the Morito Group (the “Group”), which engages in the handling of apparelmaterials and consumer products, faced harsh business conditions due to adjusting inventories in department
stores and mass retailers, soaring costs of raw materials such as copper to manufacture the Group’s main products
such as eyelets and hooks and reducing and stopping production by automakers due to semiconductor shortage.
On the other hand, the business related to babywear, medical wear, and working wear remained firm. Moreover,the Group focused on promoting “C.O.R.E.” as the Group’s commitment to the environment, such as
development and sale of accessories made from “REAMIDE®,” the recycled material of waste fishing nets, andselling products related to activities such as skateboarding, yoga and fishing. Through these businesses, the Grouphas committed to achieving the Sustainable Development Goals (SDGs), strengthening our profitability, and has
made efforts continuously to review unprofitable businesses.
As a result, for the fiscal year under review, net sales increased by 7.1% year on year to ¥43,636 million.
Operating profit increased by 89.1% to ¥1,619 million, ordinary profit increased by 97.6% to ¥1,834 million, andprofit attributable to owners of the parent increased by 199.3% to ¥1,407 million.
Exchange rates used for the conversion of revenue and expenses of the Group’s overseas subsidiaries during
the preparation of consolidated financial statements for the fiscal year under review are as follows.
1Q

2Q

3Q

4Q

USD

104.51(108.76)

106.09(108.87)

109.52(107.63)

110.10(106.22)EUR

124.58(120.32)127.80(120.09)131.93(118.58)

129.82(124.08)

CNY

15.81

(15.44)16.38(15.59)16.96(15.17)17.02(15.35)

HKD

13.48

(13.90)13.68(14.01)

14.10(13.89)14.16(13.71)TWD

3.67(3.57)

3.78(3.62)

3.91(3.60)

3.95(3.62)

VND

0.0045(0.0047)0.0046(0.0047)0.0048(0.0046)0.0048(0.0046)

THB

3.42

(3.59)

3.50(3.48)

3.50(3.37)

3.35(3.39)

MXN

5.08(5.65)

5.21(5.49)

5.47(4.63)

5.50(4.81)(Note)The exchange rate of the same period in the previous fiscal year is stated in parentheses.

Business results by segment are as follows.
[Japan]In the apparel division, sales of accessories for bags and shoes decreased but sales of accessories for working
wear, sportswear, and products related to outdoor activities increased.
In the consumer product division, sales of automotive interior components, products for one-coin shops,
products related to PC such as mousepads and products related to surfing and skateboard increased.
As a result, net sales increased by 4.9% year on year to ¥30,229 million.
[Asia]In the apparel division, sales of accessories related to working wear to Northern Europe in China and Hong
Kong, sales of accessories related to babywear to Europe and the U.S., and sales of accessories to major mass2

retailers increased.
In the consumer product division, sales of automotive interior components to Japanese automotive
manufacturers decreased in China.
As a result, net sales increased by 11.5% year on year to ¥8,054 million.
[Europe and the U.S.]
In the apparel division, sales of accessories related to working wear and for products related to leisureincreased.
In the consumer product division, sales of automotive interior components to Japanese automotive
manufacturers increased.
As a result, net sales increased by 14.1% year on year to ¥5,353 million.

(2) Overview of Financial Position for the Period under Review
Total assets for the fiscal year under review increased by ¥2,238 million from the previous fiscal year-end to¥45,938 million.
Current assets increased by ¥1,461 million from the previous fiscal year-end to ¥26,957 million. This was
mainly attributable to increases in cash and deposits, notes and accounts receivable – trade, and raw materials
and supplies of ¥978 million, ¥692 million, and ¥141 million, respectively, and a decrease in merchandise andfinished goods of ¥348 million.
Non-current assets increased by ¥778 million from the previous fiscal year-end to ¥18,980 million. This was
mainly attributable to increases in investment securities and land of ¥544 million and ¥517 million, respectively,
and a decrease in goodwill of ¥129 million.
Current liabilities increased by ¥580 million from the previous fiscal year-end to ¥7,507 million. This was
mainly attributable to increases in income taxes payable and notes and accounts payable - trade of ¥385 millionand ¥197 million, respectively.
Non-current liabilities decreased by ¥241 million from the previous fiscal year-end to ¥4,515 million. Thiswas mainly attributable to a decrease in long-term borrowings of ¥394 million and an increase in deferred tax
liabilities of ¥209 million.
Net assets increased by ¥1,899 million from the previous fiscal year-end to ¥33,914 million.
The shareholders’ equity ratio increased from 73.1% to 73.7%, rising by 0.6 points from the previous fiscal
year.

(3) Overview of Cash Flows for the Period under Review
The status of cash flows for the fiscal year under review is as follows.
(Cash flows from operating activities)
Cash flows provided by operating activities amounted to ¥2,644 million, compared to cash flows of ¥2,462
million provided in the previous fiscal year. This was mainly attributable to an increase in funds due to profit
before income taxes and the recording of depreciation, offsetting a decrease in funds due to an increase in tradereceivables.
(Cash flows from investing activities)
Cash flows used in investing activities amounted to ¥401 million, compared to cash flows of ¥16 million usedin the previous fiscal year. This was mainly attributable to a decrease in funds due to the purchase of property,
plant and equipment, offsetting an increase in funds due to the sale of investment securities.
(Cash flows from financing activities)
Cash flows used in financing activities amounted to ¥1,380 million, compared to cash flows of ¥1,878 million3

used in the previous fiscal year. This was mainly attributable to a decrease in funds due to the repayments oflong-term borrowings, payment of dividends, and redemption of bonds.
As a result of the above, cash and cash equivalents at the end of the fiscal year under review increased by¥968 million from the previous fiscal year-end to ¥11,020 million.
Trends of cash flow indicators are as follows.
Equity ratio (%)

Fiscal year ended
November 30, 2019
69.2

Fiscal year ended
November 30, 2020
73.1

Fiscal year ended
November 30, 2021
73.7

Equity ratio based on fair value (%)
46.4
38.3
38.1
Cash flow to interest-bearing debt ratio
106.0
116.9
81.2
(%)
Interest coverage ratio (times)
473.8
175.4
245.6
(Notes)Equity ratio:
Shareholders’ equity / Total assets
Equity ratio based on fair value:
Total market value of shares / Total assets
Cash flow to interest-bearing debt ratio: Interest-bearing debts / Operating cash flow
Interest coverage ratio:
Operating cash flow / Interest paid
* The indicators were calculated using financial figures on a consolidated basis.
* The total market value of shares was calculated by multiplying the closing share price by the total number ofshares outstanding (less the treasury shares) on the date of the fiscal year-end.
* Operating cash flow is the amount of net cash provided by (used in) operating activities recorded in theConsolidated Statements of Cash Flows.
* Among the liabilities recorded on the Consolidated Balance Sheets, interest-bearing debts apply to bonds
payable and borrowings.
* Interest paid is the amount of interest paid recorded on the Consolidated Statements of Cash Flows.

(4) Future Outlook
During the fiscal year under review, the Group operated under the corporate vision of “Creating existencevalue: Realization of a new Morito Group.”
The impact of COVID-19 is persisting long term, and certain restrictions have been placed on economic
activity. However, aiming for consolidated net sales of ¥50,000 million and consolidated operating profit of¥2,500 million in the fiscal year ending November 30, 2026, the targets established under the Group’s 8th midterm management plan (spanning five years from fiscal 2022 to fiscal 2026), we will implement various initiatives
to adapt to rapidly changing markets and new lifestyles.
Regarding the full-year forecast of the Group for the fiscal year ending November 30, 2022, although theoutlook for the global economy remains uncertain, due to factors including the renewed spread of COVID-19
and U.S.-China trade friction, the Group will focus on sales of value-added products with a particular emphasis
on functionality, sustainability, and ecology, as well as core products. The consolidated financial results for fiscal
2022 are forecasted to exceed those of fiscal 2021, with net sales of ¥45,000 million, operating profit of ¥1,800
million, ordinary profit of ¥1,850 million, and profit attributable to owners of parent of ¥1,450 million.

*Notes on the future outlook
The aforementioned outlook is based on information available at the date of release of these materials. Actual
results and other details may differ from the outlook due to various factors in the future such as the renewed
spread of COVID-19. We will promptly disclose any changes in forecast figures.

4(5) Basic Dividend Policy and Payments for the Period under Review and the Next Period
The Company’s basic dividend policy is to secure a sound management foundation, strengthen its financial
structure, and improve profitability while recognizing the return of profits to shareholders as an importantmanagement issue. Internal reserves will be utilized in areas such as investments aimed at long-term growth,
expansions of existing core business, and preparations for new businesses, M&As, and such, in order to increase
our corporate value in the future.
Dividends are determined after considering factors such as the financial position and net assets.
- Realize continuous dividend payments- Maintain a dividend on equity (DOE) of 1.5%
- Depending on business results, dividend payout ratio of 50% or more in relation to profit attributable toowners of parent is the standard(However, in a fiscal year with a significant fluctuation in after-tax profit attributable to owners of parent due
to special factors such as extraordinary income or losses, the dividend amount will be determined in considerationof the corresponding impact.)
From the perspective of striving 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 will continuously
review the need to flexibly conduct a purchase or retirement of its treasury shares.
For the fiscal year under review, we plan to propose a year-end dividend of ¥17.00 per share in the Annual
General Meeting of Shareholders that will be held on February 25, 2022. Accordingly, including the interim
dividend of ¥9.00 per share, the annual dividend for the fiscal year under review will amount to ¥26.00 per share.
Regarding dividends for the next fiscal year, based on the above-mentioned basic dividend policy, we plan to
pay out an interim dividend of ¥13.50, a year-end dividend of ¥13.50, which will combine to form an annual
dividend of ¥27.00.

5

2. Overview of the Corporate GroupThe Group consists of the parent company (the Company), 21 subsidiaries, and 1 associate. The main business of
the Group is the sales and manufacturing of materials for lifestyle goods, centering around daily necessities. Businessactivities of the Group include: sales and manufacturing of materials for lifestyle goods such as apparel,transportation equipment, video equipment, stationery, and OA equipment; sales of lifestyle goods via sales channels
that are mass retailers or retail stores of hardware stores and department stores, as a distribution retail-related
business; and the rental, sales and cleaning of kitchen appliances.
◎ Consolidated subsidiaries: 20 companies○ Non-consolidated subsidiaries: 1 company□ Associates accounted for using equity method: 1 company(Japan)◎ MORITO JAPAN CO., LTD.: Sales of materials for apparel and consumer products◎ ACE INDUSTRIAL MACHINERY CO., LTD.: Rental, sales, and cleaning of kitchen appliances◎ MATEX INC.: Manufacturing of apparel secondary materials, design, printing, website creation, desktop
publishing, and graphic design production planning◎ 52DESIGN CO., LTD.: Sales and manufacturing of bags, accessories, clothes, furniture and miscellaneous goods◎ MANEUVERLINE CO., LTD.: Import, sales and wholesaling of marine leisure, snowboarding, and apparelgoods◎ CANVAS CO., LTD.: A subsidiary of MANEUVERLINE CO., LTD. (100%); import, sales and wholesaling ofapparel goods□ Kuraray Fastening Co., Ltd.: Sales and manufacturing of hook and loop fasteners(Asia)◎ MORITO SCOVILL HONG KONG Co., LTD.: Sales of materials for apparel and consumer products◎ MORITO (SHENZHEN) CO., LTD.: A subsidiary of MORITO SCOVILL HONG KONG Co., LTD. (100%);
manufacturing of materials for apparel and consumer products◎ TAIWAN MORITO CO., LTD.: Sales of materials for apparel and consumer products◎ KANE-M SHANGHAI CO., LTD.: Sales of materials for apparel and consumer products◎ KANE-M DANANG CO., LTD.: Sales and manufacturing of materials for apparel and consumer products, andoperation of rental factories◎ KANE-M (THAILAND) CO., LTD.: Sales of materials for apparel and consumer products◎ SHANGHAI NEW WORLD MATEX INTERNATIONAL TRADE CO., LTD.: A subsidiary of MATEX INC.
(100%); sales and manufacturing of apparel secondary materials, design, and sales of printing materials both inand outside China○ MATEX BANGKOK CO., LTD.: A subsidiary of MATEX INC. (100%); sales and manufacturing of apparelsecondary materials, design, and sales of printing materials both in and outside Thailand◎ GSG (SCOVILL) FASTENERS ASIA LIMITED: A subsidiary of MORITO SCOVILL AMERICAS, LLC.
(100%); sales of materials for apparel and consumer products◎ SCOVILL FASTENERS INDIA PVT. LIMITED: A subsidiary of MORITO SCOVILL AMERICAS, LLC.
(100%); sales of materials for apparel and consumer products(Europe and the U.S.)◎ KANE-M, INC.: Sales of materials for consumer products◎ MORITO (EUROPE) B.V.: Sales of materials for apparel and consumer products◎ MORITO SCOVILL AMERICAS, LLC.: Sales and manufacturing of materials for apparel and consumer
products
6◎ SCOVILL FASTENERS UK LIMITED: A subsidiary of MORITO SCOVILL AMERICAS, LLC. (100%); salesof materials for apparel and consumer products◎ MORITO SCOVILL MEXICO S.A. de C.V.: A subsidiary of KANE-M, INC. (89.4%) and MORITO SCOVILLAMERICAS, LLC (10.6%); sales of automobile interior components and apparel accessories(Note) MATEX BANGKOK CO., LTD. is currently in the process of liquidation.

7

The Group conducts business with the following organization structure.
MORITO CO., LTD.

JAPAN
◎
◎
◎
◎
◎

MORITO JAPAN CO., LTD.
MATEX INC.
MANEUVERLINE CO., LTD.
CANVAS CO., LTD.
52DESIGN CO., LTD.

APPARELDIVISIONCONSUMERPRODUCTDIVISION◎ MORITO JAPAN CO., LTD.
◎ ACE INDUSTRIAL MACHINERYCO., LTD.
◎ MATEX INC.
◎ MANEUVERLINE CO., LTD.
◎ CANVAS CO., LTD.
□ Kuraray Fastening Co., Ltd.

ASIAEUROPE AND THE U.S.

◎ MORITO SCOVILL HONG
KONG Co., LTD.
◎ MORITO (SHENZHEN) CO.,LTD.
◎ TAIWAN MORITO CO., LTD.
◎ KANE-M SHANGHAI CO., LTD.
◎ KANE-M DANANG CO., LTD.
◎ KANE-M (THAILAND) CO.,LTD.
◎ SHANGHAI NEW WORLDMATEX INTERNATIONAL
TRADE CO., LTD.
◎ GSG (SCOVILL) FASTENERS
ASIA LIMITED◎ SCOVILL FASTENERS INDIA
PVT. LIMITED○ MATEX BANGKOK CO., LTD.

◎ MORITO (EUROPE) B.V.
◎ MORITO SCOVILL AMERICAS,LLC.
◎ SCOVILL FASTENERS UK
LIMITED◎ MORITO SCOVILL MEXICO
S.A. de C.V.

◎ MORITO SCOVILL HONG
KONG Co., LTD.
◎ MORITO (SHENZHEN) CO.,LTD.
◎ TAIWAN MORITO CO., LTD.
◎ KANE-M SHANGHAI CO., LTD.
◎ KANE-M DANANG CO., LTD.
◎ KANE-M (THAILAND) CO.,LTD.
◎ SHANGHAI NEW WORLDMATEX INTERNATIONAL
TRADE CO., LTD.
◎ GSG (SCOVILL) FASTENERS
ASIA LIMITED◎ SCOVILL FASTENERS INDIA
PVT. LIMITED◎ KANE-M, INC.
◎ MORITO (EUROPE) B.V.
◎ MORITO SCOVILL AMERICAS,LLC.
◎ SCOVILL FASTENERS UK
LIMITED◎ MORITO SCOVILL MEXICO
S.A. de C.V.

CLIENTS(Note)◎: Consolidated subsidiaries○: Non-consolidated subsidiaries

8□: Associates accounted for using equity method

3. Basic Stance Regarding Choice of Accounting Standards
Taking into consideration the comparability of consolidated financial statements across periods and among
companies, the Group’s policy is to continue preparing its consolidated financial statements using Japanese GAAP
for the time being.
With regard to the application of International Financial Reporting Standards (IFRS), the Group’s policy is to
respond appropriately based on considerations of the situation in Japan and overseas.

9

4. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheets(Thousand yen)
As of November 30, 2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Right of use assets
Accumulated depreciation
Right of use assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Leased assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Deferred assets
Total assets

10

As of November 30, 2021

10,125,070
9,957,014
3,938,285
327,184
456,382
733,414(40,942)
25,496,410

11,103,207
10,649,689
3,590,130352,442598,032
707,446(43,235)
26,957,713

7,463,749(3,456,342)
4,007,407
2,271,573(1,575,838)
695,734
2,354,404(1,878,222)
476,181
4,076,183
146,782(90,491)
56,291
384,915(135,111)
249,803
4,382
9,565,985

7,650,091(3,735,844)
3,914,246
2,377,636(1,764,313)
613,323
2,362,025(1,973,146)
388,878
4,594,174
111,742(73,727)
38,015509,268(263,468)
245,800
82,5329,876,970

2,561,362
7,565
1,082,213
3,651,142

2,432,266
5,708
1,031,775
3,469,750

3,940,908
54,000417,186
221,671418,693(67,945)
4,984,514
18,201,643
1,400
43,699,454

4,485,900
48,000462,373
241,832
504,360(108,676)
5,633,790
18,980,511－
45,938,224

(Thousand yen)
As of November 30, 2020

As of November 30, 2021

4,255,918
50,000200,000
530,000
98,125
184,683

4,453,854
50,000－394,620
483,951
286,425

50,841

86,065

1,557,809
6,927,378

1,752,857
7,507,774

2,097,922
1,019,472
275,959
37,453

1,703,302
1,229,154
275,959
32,27462,09932,15875,43291,65018,974918,297
251,123
4,756,735
11,684,114

20,075
911,731219,273
4,515,579
12,023,354

3,532,492
3,507,603
25,703,378(2,227,056)
30,516,416

3,532,492
3,507,603
26,726,521(2,289,615)
31,477,001

945,536
118
451,115
112,743(67,659)
1,441,855
57,067－32,015,339
43,699,454

1,321,667
4,612
451,115
641,116(36,922)
2,381,589
56,280－33,914,870
45,938,224

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for share awards
Provision for retirement benefits for directors (andother officers)
Provision for share awards for directors (and otherofficers)
Provision for environmental measures
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

11(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Thousand yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Salaries
Bonuses
Welfare expenses
Retirement benefit expenses
Provision for bonuses for directors (and other officers)
Provision for retirement benefits for directors (and otherofficers)
Provision for share awards for directors (and otherofficers)
Communication expenses
Freight and packing costs
Provision of allowance for doubtful accounts
Commission expenses
Rent expenses
Depreciation
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rental income from real estate
Share of profit of entities accounted for using equity
methodSubsidies for employment adjustment
Other
Total non-operating income
Non-operating expenses
Interest expenses
Sales discounts
Depreciation of assets for rent
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit

For the fiscal year
ended November 30, 2020
40,727,340
30,153,485
10,573,854

For the fiscal year
ended November 30, 2021
43,636,848
32,235,770
11,401,077

3,317,633
518,167
765,766
187,652
63,357

3,281,014
609,669
782,211220,126
82,867

7,975

5,033

19,003

16,217

117,786
1,397,117
11,479784,050
177,487
539,807
1,810,101
9,717,387
856,467

108,031
1,461,317
41,265646,752
154,391
510,657
1,861,736
9,781,293
1,619,783

14,10879,32566,6439,721
85,53868,812

37,20865,07863,301
71,662332,250

111,854
58,855399,860

14,43765,75337,26060,79882,312
260,563928,154

10,70059,08022,57934,895
58,128185,384
1,834,260

12

(Thousand yen)
For the fiscal year
ended November 30, 2020

For the fiscal year
ended November 30, 2021

867
15,263630
16,761360
378,617787
379,764

17,52640,152－
1,080
16,0805,374－
31,92826,561
138,703806,212416,227(80,113)336,114470,097－
470,09729
30,879139－－
200
16,92634,3659,456
91,997
2,122,027
771,950(57,129)714,820
1,407,207－
1,407,207

Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on reversal of share acquisition rights
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Loss on sale of investment securities
Loss on sale of golf club membership
Loss on valuation of investment securities
Loss on valuation of golf club membership
Impairment losses
Loss on business restructuring
Loss due to new corona virus infection
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

13

Consolidated Statements of Comprehensive Income(Thousand yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

For the fiscal year
ended November 30, 2020
470,097

For the fiscal year
ended November 30, 2021
1,407,207(239,898)(828)(57,556)(41,935)

376,130
4,493
528,372
30,73600(340,219)
129,877

939,7342,346,941

129,877

2,346,941

－

－

14

(3) Consolidated Statements of Changes in Equity
For the fiscal year ended November 30, 2020
(Thousand yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus Retained earnings Treasury shares

3,532,492

3,503,243

26,072,687(2,222,696)

Total
shareholders’equity30,885,726

Changes during period
Dividends of surplus(732,691)(732,691)

Profit attributable to ownersof parent

470,097

470,097

Purchase of treasury shares
Disposal of treasury shares

4,360

Effect of change of scope of
consolidation
Net changes in items otherthan shareholders’ equity(31,120)(31,120)

26,76031,120(106,715)

Total changes during period
Balance at end of period(106,715)

－

4,360

(369,309)(4,360)(369,309)

3,532,492

3,507,603

25,703,378(2,227,056)

30,516,416

Accumulated other comprehensive income

Balance at beginningof period

Valuationdifference on
available-forsale securities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive
incomeShare
acquisitionrights

Noncontrollinginterests

Total net
assets1,185,435

946

451,115

170,300(25,723)

1,782,074

57,697－32,725,498

Changes during period
Dividends ofsurplusProfit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
shares
Effect of change ofscope ofconsolidation
Net changes in
items other thanshareholders’ equity
Total changes
during period
Balance at end of
period(732,691)
470,097(31,120)
31,120(106,715)(239,898)

(828)

－

(57,556)(41,935)(340,219)

(630)

－

(340,849)(239,898)

(828)

－

(57,556)(41,935)(340,219)

(630)

－

(710,159)

945,536

118

451,115

112,743(67,659)

1,441,855

57,067－32,015,339

15

For the fiscal year ended November 30, 2021
(Thousand yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus Retained earnings Treasury shares

3,532,492

3,507,603

25,703,378(2,227,056)

Total
shareholders’equity30,516,416

Changes during period
Dividends of surplus(384,063)(384,063)

Profit attributable to ownersof parent

1,407,207

1,407,207

Purchase of treasury shares(63,496)(63,496)

Disposal of treasury shares

937

937

Effect of change of scope of
consolidation
Net changes in items otherthan shareholders’ equity－

Total changes during period
Balance at end of period－－

1,023,143(62,559)

960,584

3,532,492

3,507,603

26,726,521(2,289,615)

31,477,001

Accumulated other comprehensive income

Balance at beginningof period

Valuationdifference on
available-forsale securities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive
incomeShare
acquisitionrights

Noncontrollinginterests

Total net
assets945,536

118

451,115

112,743(67,659)

1,441,855

57,067－32,015,339

Changes during period
Dividends ofsurplusProfit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
shares
Effect of change ofscope ofconsolidation
Net changes in
items other thanshareholders’ equity
Total changes
during period
Balance at end of
period(384,063)
1,407,207(63,496)937－
376,130

4,494－

528,372

30,736

939,734(787)－

938,946

376,130

4,494－

528,372

30,736

939,734(787)－

1,899,531

1,321,667

4,612

451,115

641,116(36,922)

2,381,589

56,280－33,914,870

16

(4) Consolidated Statements of Cash Flows(Thousand yen)
For the fiscal year
ended November 30, 2020
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Increase (decrease) in provision for bonuses
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits
for directors (and other officers)
Increase (decrease) in provision for share awards
Increase (decrease) in provision for share awards for
directors (and other officers)
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Subsidies for employment adjustment
Share of loss (profit) of entities accounted for using
equity method
Gain on reversal of share acquisition rights
Loss (gain) on sale of non-current assets
Loss (gain) on sale of investment securities
Loss (gain) on sale of golf club membership
Loss (gain) on valuation of investment securities
Loss on valuation of golf club membership
Loss on retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Proceeds from Subsidies for employment adjustment
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from sale of shares of subsidiaries andassociates
Proceeds from collection of loans receivable
Other, net
Net cash provided by (used in) investing activities

17

For the fiscal year
ended November 30, 2021

806,212962,214－
237,745(45,929)511
11,276

2,122,027
937,238
16,926237,327
97,841
15,313
15,942

4,850(29,941)

5,629(5,178)19,003

16,217

10,863(93,434)
13,888(63,301)

40,330(95,259)
10,700(111,854)(37,208)(65,078)(630)
16,658(15,263)
1,080
16,0805,374
40,152
1,811,874
370,029(599,590)(313,206)
3,164,880
93,456(14,036)
42,004(823,727)
2,462,577

(787)
(330)
(378,477)－－200
30,879(542,641)
310,449
19,780
197,4852,839,112
95,244(10,767)
96,277(375,843)
2,644,023－
220,295(27,811)61,929(251,301)
34,274(81,873)(79,000)
88,596(35,038)
473,619(784,947)
967(67,976)

29,287－

7,200(8,762)(16,761)

6,800(4,729)(401,707)

(Thousand yen)
For the fiscal year
ended November 30, 2020
Cash flows from financing activities
Repayments of lease obligations
Repayments of lease liabilities
Repayments of long-term borrowings
Redemption of bonds
Proceeds from sale of treasury shares
Purchase of treasury shares
Dividends paid
Net cash provided by (used in) 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 period
Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period18

For the fiscal year
ended November 30, 2021

(41,903)(150,370)(553,334)(400,000)
31,120(31,120)(732,691)(1,878,299)
9,444
576,961
9,442,330(21,165)(181,607)(530,000)(200,000)－(63,496)(384,063)(1,380,332)
106,057
968,040
10,052,070

32,779－10,052,070

11,020,111

(5) Notes to the Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.
(Additional Information)(Impact of COVID-19 pandemic on accounting estimates)
In the fiscal year under review (from December 1, 2020 to November 30, 2021), despite expectations of an
upturn in business conditions with the progress of COVID-19 vaccinations, the business environment remained
unclear as the advent of a new variant of COVID-19 led to the renewed spread of the infection across the regions.
Amid such circumstances, the Group, which engages in the handling of apparel materials and consumer
products, estimated future cash flows and made accounting estimates related to the application of impairment
accounting to non-current assets (including goodwill) for the fiscal year under review in the segments of Japan,
Asia, Europe and the U.S. based on the following assumptions:
In Japan, we assume that the economy will gradually recover after the end of the fiscal year ending November
30, 2022, and will recover to the levels of the fiscal year ended November 30, 2019 in the fiscal year ending
November 30, 2023.
In Asia, the economy is already in a recovery trend, and we assume that it will recover to the levels of the
fiscal year ended November 30, 2019 in the fiscal year ending November 30, 2022.
In Europe and the U.S., we assume that it will recover to the levels of the fiscal year ended November 30,
2019 in the fiscal year ending November 30, 2022, as in Asia.
While estimates are made according to information currently available, the Group’s business results andfinancial position may be affected in the event of any discrepancies between assumed recovery trends and actual
trends in the future.

19

(Segment Information, etc.)[Segment information]
1. Overview of reportable segments
The Group’s reportable segments are those constituent units for which discrete financial information isavailable, and for which the Board of Directors conducts regular reviews for the purposes of making decisions
on the allocation of resources and assessing performance.
The main business of the Group is the sales and manufacturing of materials for lifestyle goods, centering
around daily necessities. Operations in Japan are mainly carried out by MORITO JAPAN CO., LTD., operationsin Asia are mainly carried out by local subsidiaries in China, Hong Kong, and Taiwan, and operations in Europe
and the U.S. are mainly carried out by local subsidiaries in the U.S. and the Netherlands. The Company and its
local subsidiaries, etc. are independently managed units, but the Group formulates comprehensive strategies forbusiness activities across all regions.
The Group therefore consists of three regional segments, each of which is a reportable segment: Japan, Asia,
and Europe and the U.S.
2. Method used to calculate amounts of net sales, profit (loss), assets, liabilities and other items by reportablesegment
The accounting treatment used for each of the reportable segments is substantially the same as the accounting
treatment used in the preparation of the consolidated financial statements.
The amounts presented for the profit of reportable segments represent operating profit.
The amounts presented for inter-segment sales or transfers are based on prevailing market prices.
3. Information on amounts of net sales, profit (loss), assets, liabilities and other items by reportable segment
I. For the fiscal year ended November 30, 2020
(Thousand yen)

Reportable Segment

Net sales
Net sales to external customers
Inter-segment sales or transfers
Total
Segment profit (loss)
Segment assets
Other items
Depreciation
Increase in property, plant andequipment and intangible
assets

Total

Adjustment(Notes 1, 3)

Amountrecorded in
Consolidated
Financial
Statements(Note 2)

4,691,622
54,3304,745,952(63,042)6,050,196

40,727,340
3,533,668
44,261,009
1,061,478
41,421,066－(3,533,668)(3,533,668)(205,011)
2,278,387

40,727,340－
40,727,340
856,467
43,699,454

294,710

178,552

962,214－962,214

195,754

56,934

529,952－

529,952

Japan

Asia

28,810,688
1,285,134
30,095,822
868,563
29,019,427

7,225,029
2,194,204
9,419,234
255,957
6,351,442

488,951
277,262

Europe andthe U.S.

(Notes) 1. The adjustment of ¥(205,011) thousand to segment profit includes corporate expenses of ¥(210,100) thousand notallocated to the reportable segments, and other in the amount of ¥5,088 thousand.
2. The amount of segment profit has been adjusted with operating profit in the Consolidated Statements of Income.
3. The amount of the adjustment to segment assets of ¥2,278,387 thousand includes inter-segment elimination of¥(8,932,180) thousand, and corporate assets of ¥11,210,568 thousand not allocated to the reportable segments.
Corporate assets mainly refer to the financial assets (cash and deposits, investment securities, etc.) held by theCompany, which is the holding company of the Group.
4. Some overseas consolidated subsidiaries applied IFRS 16 “Leases” from the beginning of the fiscal year ended
November 30, 2020, where in principle, lessees recognize all leases as assets and liabilities.
The impact of this change on segment results is immaterial.

20II. For the fiscal year ended November 30, 2021
(Thousand yen)

Reportable Segment

Net sales
Net sales to external customers
Inter-segment sales or transfers
Total
Segment profit
Segment assets
Other items
Depreciation
Increase in property, plant andequipment and intangible
assets

Japan

Asia

Europe andthe U.S.

Total

Adjustment(Notes 1, 3)

Amountrecorded in
Consolidated
Financial
Statements(Note 2)30,229,154
1,717,321
31,946,475
1,375,514
30,798,110

8,054,328
2,408,394
10,462,723
401,180
6,091,162

5,353,364
52,3755,405,740
56,9296,691,907

43,636,848
4,178,091
47,814,939
1,833,625
43,581,180－(4,178,091)(4,178,091)(213,841)
2,357,044

43,636,848－
43,636,848
1,619,783
45,938,224

410,717314,565

211,954937,238－

937,238

791,151

173,213106,048

1,070,413－

1,070,413(Notes) 1. The adjustment of ¥(213,841) thousand to segment profit includes corporate expenses of ¥(213,877) thousand notallocated to the reportable segments, and other in the amount of ¥(36) thousand.
2. The amount of segment profit has been adjusted with operating profit in the Consolidated Statements of Income.
3. The amount of the adjustment to segment assets of ¥2,357,044 thousand includes inter-segment elimination of¥(9,518,492) thousand, and corporate assets of ¥11,875,536 thousand not allocated to the reportable segments.
Corporate assets mainly refer to the financial assets (cash and deposits, investment securities, etc.) held by theCompany, which is the holding company of the Group.

21

(Per Share Information)

Item
Net assets per share

Previous fiscal year
(December 1, 2019 toNovember 30, 2020)¥1,167.21

Fiscal year under review(December 1, 2020 toNovember 30, 2021)¥1,240.70¥17.17¥51.41－－

Basic earnings per share
Diluted earnings per share(Notes) 1. The number of common shares that are treasury shares used to calculate “net assets per share” includes theCompany’s shares (376 thousand shares in the previous fiscal year, 373 thousand shares in the fiscal year
under review) held by Custody Bank of Japan, Ltd. (trust account E), and the Company’s shares (175 thousand
shares in the previous fiscal year, 175 thousand shares in the fiscal year under review) held by The Master
Trust Bank of Japan, Ltd. (officer remuneration BIP trust account).
2. The average number of common shares during the period that are treasury shares used to calculate “basic
earnings per share” includes the Company’s shares (376 thousand shares in the previous fiscal year, 374
thousand shares in the fiscal year under review) held by Custody Bank of Japan, Ltd. (trust account E), andthe Company’s shares (166 thousand shares in the previous fiscal year, 175 thousand shares in the fiscal year
under review) held by The Master Trust Bank of Japan, Ltd. (officer remuneration BIP trust account).
3. Diluted earnings per share are not stated as there were no residual shares with a dilutive effect.
(Note) Basis for the Calculations
1.

Net assets per share
Item

As of November 30, 2020

As of November 30, 2021

Total net assets on Consolidated Balance Sheets
32,015,339
33,914,870(Thousand yen)Amount deducted from total net assets (Thousand
57,06756,280yen)[Including: Share acquisition rights (Thousand[57,067][56,280]yen)][Including: Non-controlling interests (Thousand
－
－
yen)]
Net assets relating to common shares (Thousand
31,958,271
33,858,590
yen)Number of common issued shares (Thousand
30,80030,800shares)Number of common shares that are treasury
3,420
3,510
shares (Thousand shares)
Number of common shares used to calculate net
27,37927,290assets per share (Thousand shares)(Note) The number of common shares that are treasury shares used to calculate net assets per share includes theCompany’s shares held respectively by Custody Bank of Japan, Ltd. (trust account E) and The Master
Trust Bank of Japan, Ltd. (officer remuneration BIP trust account) as treasury shares.

22

2.

Basic earnings per share

Item
Basic earnings per share
Profit attributable to owners of parent(Thousand yen)Amount not attributable to commonshareholders (Thousand yen)
Profit attributable to owners of parent relating tocommon shares (Thousand yen)
Average number of common shares during theperiod (Thousand shares)
Overview of residual shares not included in
calculation of diluted earnings per share due tolack of dilutive effectPrevious fiscal year
(December 1, 2019 toNovember 30, 2020)

Fiscal year under review(December 1, 2020 toNovember 30, 2021)

470,097

1,407,207－－

470,097

1,407,207

27,37927,372

Share acquisition rights
resolved by the Board of
Directors and at the Annual
General Meeting of
Shareholders held on
February 25, 2016
Common shares: 543,500

Share acquisition rights
resolved by the Board of
Directors and at the Annual
General Meeting of
Shareholders held on February
25, 2016
Common shares: 536,000(Note) The average number of common shares during the period used to calculate basic earnings per share anddiluted earnings per share includes the Company’s shares held respectively by Custody Bank of Japan,
Ltd. (trust account E) and The Master Trust Bank of Japan, Ltd. (officer remuneration BIP trust account)as treasury shares.

235. Other Information(1) Changes in Officers
1.

Changes of representative
Not applicable.

2.

Changes of other officers
Not applicable.

24