MORITO CO., LTD.
Presentation Materials for the First Quarterof Fiscal Year Ending November 30, 2024,
Financial Results

Where innovation is the norm

Prime Market of TSE: 9837
April 2024

© 2024 MORITO CO.,LTD.

CONTENTS

1

Company Profile2

8th Mid-term Management Plan (Announced in January 2024)

3

FY2024.11 1Q Financial Results

4

FY2024.11 1Q Business Overview

5

Business Topics

6

Shareholder Returns

W here innovation is the norm

© 2024 MORITO CO.,LTD.

01

1Company Profile

W here innovation is the norm

© 2024 MORITO CO.,LTD.

02

Morito Group Values

Founding Principles

Active and Steadfast
Corporate Principle

DESIGN YOUR BRIGHT FUTURE WITH OUR VARIOUS
PARTS.
Corporate Vision

Create Morito’s existence value,
Realize “New Morito Group”

W here innovation is the norm

© 2024 MORITO CO.,LTD.

03

Company Profile● Founded in 1908
･ Began operating in Osaka as a broker of eyelets andsnap fasteners･ Later expanded operations mainly for sales of MAGICTAPE® and other clothing accessories, automotive
interior components, etc.

● Trading company with manufacturing functions･ A specialized trading company that handles everythingfrom planning and development to manufacturing,
wholesale, and distribution

Eyelets

Snap fasteners

MAGIC TAPE®

*Eyelet: A metal ring attached to a hole inshoes, clothing, etc. through which alace or cord is threaded･ Operating in 19 locations around the world● Operating three businesses･ Apparel, product, and transportation businesses form
the core of our operations･ Ratio of in-house production and procurement is 3:7

Where innovation is the norm

© 2024 MORITO CO.,LTD.

04

Operations by BusinessApparel Business<Examples of products handled>

Snap fasteners MAGIC TAPE®

Tape

Eyelets andshoelaces<Applications>Casual wear/shoes
Sportswear/shoes

Product Business<Examples of products handled>

Transportation Business<Examples of products handled>

Buttons

MAGIC TAPE®

Grease filter

InsolesIn-housebrandsStrapsSkateboards,
snowboards, andsurfboards

In-housebrandsSnap fasteners MAGIC TAPE®

Emblems

Trunk floor
lining

Nets

Door armrests<Applications><Applications>

Insoles and shoe care products

Automotive interior components
Railway and Shinkansen interior components

Workwear/shoes
Medical wear, baby wear

Video equipment-related products such as camera
and PC cases, braces and supports, safety
products, teaching tools and stationery

Formal wear/shoes, bags

Skateboards, surfboards, etc.

Aircraft interior components

Active sports products
Grease filter rental service

Where innovation is the norm

© 2024 MORITO CO.,LTD.

05

Morito’s Strengths● Lines of business for daily necessities, which are unaffected by trends
Since we deal in parts for things that are vital to people’s daily lives, many of our businesses are
essentially immune to trends or economic downturns and can continue to operate as usual.

● Stable performance with a diversified portfolio
Operating worldwide with three core businesses focused on apparel, products, and transportation, we
have maintained a stable financial performance without falling into the red despite the impact of the oilcrises (in the 1970s), the 2008 financial crisis, and the COVID-19 pandemic.

● Enjoying high market share for various products targeting niche areas
Many products dominate the market in their respective industry.
We have the top market share for metal snap fasteners in Japan, and the highest or second-highest in
the world.

● Global manufacturing, procurement, and sales capabilities
In addition to our own locations, we have partner plants and distributors all over the world, giving us
close proximity to our customers and the ability to respond to their every need.

W here innovation is the norm

© 2024 MORITO CO.,LTD.

06

2
8th Mid-term Management Plan
(Announced in January 2024)

W here innovation is the norm

© 2024 MORITO CO.,LTD.

07

Medium- and Long-term Policy

Morito’s Vision

Become a global niche top company
that keeps making a big difference inthe world with small parts

W here innovation is the norm

© 2024 MORITO CO.,LTD.

08

Summary of 8th Mid-term Management Plan Update(Announced in January 2024)
We updated the 8th Mid-term Management Plan in anticipation of achieving our initial financial targets earlier thanplanned thanks to the improved profit margin as a result of business restructuring and the opportunities createdand costs cut during the pandemic, which enabled us to establish a lean profit structure (designed to create morecustomer value using fewer resources than a traditional structure).
Situational analysis<Outcome of initiatives implemented>

Historical Stock Price and PBR

1. Improved profit margin as a result of business restructuring

Stock Price

2. Opportunities created and costs cut during the pandemic

799 JPY

3. Improved PBR (see graph on the right)

1,295 JPY

PBR

758 JPY
612 JPY

641 JPY

0.52

0.52

0.55

2020

2021

2022

0.90

Establishing a lean profit structure
Initial financial targets to be achieved earlier than projected

0.67

2019

2023

<Issues>
1. Specific growth strategies for eachbusiness
2. Investment for future growth
3. Management aiming at PBR of 1 orhigher-> Realize ROE exceeding cost of equity

Action plan
● Investing with an eye to growth under the next mid-term plan

● Moving Rideeco® forward

Boost capital investments, new businesses, and B2C / Build IT infrastructure and invest in human capital/ Expand manufacturing function● Growth strategies for existing businesses
Local production for local consumption and Asia strategies / Increase global market share

8th Mid-term Management Plan update● Revised financial targets upward● Use the run-up to FY2026 to pave the way toward
accelerating growth in the future

W here innovation is the norm

Financial targets[FY2026]
Net sales: 60,000 million JPY
Operating profit: 3,000 million JPY ROE: 6.5%
[Our vision for FY2030]
Net sales: 80,000 million JPY
Operating profit: 5,000 million JPY ROE: 8.0%

© 2024 MORITO CO.,LTD.

09

Roadmap to 100,000 Million JPY in Net Sales

Revampmanagement
structure andsow seeds forincreasing
profitBuild a global earnings baseand management system

80,000Aggressively invest for the future
Our vision for FY2030

Period for building
a businessstructure designed
to weather the
COVID-19 pandemic

7th Mid-termManagement Plan

Increase both the
top line and profit
marginEstablish a lean profit structure

8th Mid-term Management Plan

Net sales: 80,000
million JPY Operating
profit: 5,000 million
JPY ROE: 8.0%

60,00048,5295,000

Bring net sales
up to 100,000
million JPY

48,47845,98743,943

43,636

41,38840,72740,086

2,464
2,116
3,000

1,767

1,707

1,725

1,619

1,734

Net sales

8th Mid-term Management Plan (5 years)

856

Operating profit(Million JPY)

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Targets

W here innovation is the norm

© 2024 MORITO CO.,LTD.

10

Current Status and Vision for 2030 by BusinessNet sales

Increase bothprofit margin andbusiness size

2030
Efforts focused on
North American
operations

ApparelFocus on improving
profitability while
increasing business size

Expand efforts to increase
profit margin and efficiency

2030

Create new corebusinesses

2030
Product

2030

New

Transportation
Product

M*

Operating profit ratio* Product Ⓜ is a business added to the Morito Group’s operations as a result of an acquisition, etc. It mainly refers to businesses related to
kitchen equipment-related services and action sports.

Where innovation is the norm

© 2024 MORITO CO.,LTD.

11

Financial Target Update
Focus on increasing our top line, in addition to keeping the recently improved profit margin up.

Aim to achieve further growth in both sales and operating profit after the 8th Mid-term Management
Plan period although we expect growth in operating profit to remain within a certain range due toaggressive investment.

Net sales

Operating profit

3,000
million JPY

60,000
million JPY+500 million JPY(+20.0%)+10,000 million JPY(+20.0%)48,500
million JPY

50,000
million JPY

2,400 million JPY

2,500 million JPY

Operating profit
ratio of 5.0%2023 results

Where innovation is the norm

2026 initial target

2026 revised target

2023 results

2026 initial target

Operating profit
ratio of 5.0%2026 revised target© 2024 MORITO CO.,LTD.

12

Investment Strategy

Existing investments and equipment retention

Operating CF
7,000 million JPY±20%

Cash on handExternal
procurement

1,200 million JPY

Growth investment
New product development expenses

500 million JPY

Initiatives to reduce environmental impact

500 million JPY

Capital investment (Ace Industrial Machinery, Morito Scovill Americas, Morito Danang, Morito Scovill Mexico)

600 million JPY

Strengthening B2C

300 million JPY

Building data infrastructure and enhancing BI functions

500 million JPY

Investment in human capital

100 million JPY

M&A

5,000 million JPY

Shareholder returns

6,000 million JPY*Total investments over 3 years up until FY2026

Where innovation is the norm

© 2024 MORITO CO.,LTD.

13

Investment Strategy [M&A]

M&A policy

1. Niche top company

2. Group synergies

Low risk

Acquired in 2014: GSG FASTENERS, LLC(now Morito Scovill Americas, LLC)

3. Stable earnings base

Increasing global share
Affiliate for apparel, footwear, and bag materials

Acquired in 2014:
Matex Inc.

Expanding manufacturing functions
Manufacturer of resins, metals, and fibers for automobile interior
components and apparel materials

PriorityStrengthening B2C businessHigh risk

High-end brand offering high added value such as functionality, design, durability, etc.

Entering a new market

Acquired in 2018:
Maneuverline Co., Ltd.

Residential space, healthcare, and service companies

Where innovation is the norm

© 2024 MORITO CO.,LTD.

14

Corporate strategies [Capital Policy and Financial Strategy: Overview]● Expand business through aggressive growth investment (see p. 13 for details of investment strategy)● Optimize capital structure by utilizing interest-bearing debt
● Continue shareholder return and control net assets
Target B/S structure

Current B/S

Cash anddeposits

Use cash generated by
improved CCC, effective use
and sale of assets, etc. forinvestment

Liability

Cash anddeposits
Reduction

Interest-bearing
debt

AssetsNet
assetsUse it for future investments
in business expansion,
including M&A

Higherstock
priceMarketcapitalization

Net assets

Interest-bearing
debt
Utilization

Marketcapitalization

AssetsLiability

Continue shareholder return and control net assets
Basic dividend policy: Target a dividend payout ratio of 50% and DOE ratio of 4.0%, and buy backshares whenever necessary and cancel them appropriately▶ For more information about the 8th Mid-Term Management Plan Update, click here.

Where innovation is the norm

© 2024 MORITO CO.,LTD.

15

Financial targets

FY2023 results

FY2026 targets

Our vision for FY2030

Net sales

48,500 million JPY

60,000 million JPY

80,000 million JPY

Operating profit

2,400 million JPY

3,000 million JPY

5,000 million JPY

Total assets

51,400 million JPY

Increase via growth investment

Net assets

38,400 million JPY

Maintain current level via shareholder returns

Interest-bearing debt

1,400 million JPY

Increase due to use for growth investment

Equity ratio

74.7%

Decrease due to use of interest-bearing debt

ROE

5.9%

Payout ratio

66.2%

DOE

3.9%

Performance

Assets/ROE

Shareholder returns

Growth investment

Where innovation is the norm

Share repurchase

470 million JPY

Investment amount

540 million JPY

6.5%

8.0%

Decrease due to profit growth
4.0%

4.0%

Consider buying back shares whenever necessary

8,700 million JPY*Total for the FY2024 – FY2026 period

Increase growthinvestment© 2024 MORITO CO.,LTD.

16

3
FY2024.11 1Q Financial Results

W here innovation is the norm

© 2024 MORITO CO.,LTD.

17

FY2024 1Q

Highlights● Slowing consumption and stagnant demand continued in 1Q despite signs ofrecovering sales in Europe and the U.S.
● The apparel and product businesses were affected by overstocking andproduction cutbacks by manufacturers in Japan due to a warm winter andthe end of the post-pandemic surge in demand.

● Continued efforts to streamline unprofitable businesses resulted in improved
profits despite a slight decline in net sales.
● 1Q operating profit and net income hit all-time highs since we began reporting
quarterly results for the third consecutive fiscal year.

W here innovation is the norm

© 2024 MORITO CO.,LTD.

18

FY2024 1Q

Summary of Financial Results

Made good progress in turning a profit, especially in terms of gross profit ratio, thanks
to business restructuring and sales efforts, despite some issues with net sales due to awarm winter and overstocking mainly in Japan.
(Million JPY)

FY2023

FY2024

Increase/Decrease

Y/Y

Net sales

11,804

11,744-60-0.5%

Gross profit

3,232

3,378

+146

+4.5%

Gross profit ratio

27.4%

28.8%

Cost

2,613

2,715

+102

+3.9%

Cost ratio

22.1%

23.1%

Operating profit

619

662

+43

+7.0%

Operating profit ratio

5.2%

5.6%

Ordinary profit

661

669

+8

+1.2%

Ordinary profit ratio

5.6%

5.7%

Net income

516

564

+48

+9.4%

Net income ratio

4.4%

4.8%

W here innovation is the norm

© 2024 MORITO CO.,LTD.

19

FY2024 1Q

Forecast & Progress

Net sales are slightly behind the forecast due to stagnant domestic consumption,
particularly in the apparel and product businesses. Efforts are underway to acquire newcustomers. Profit ratios were as projected.

FY2024FY2024Full-Year Forecast

1Q

Progress

Net sales

11,74451,00023.0%

Operating profit

662

2,600

25.5%

Operating profit ratio

5.6%

5.1%

Ordinary profit

669

2,800

Ordinary profit ratio

5.7%

5.5%

Net income

564

2,300

Net income ratio

4.8%

4.5%

W here innovation is the norm

23.9%

24.5%

© 2024 MORITO CO.,LTD.

20

FY2024 1Q

Net Sales

Net sales: 11,744 million JPY
Y/Y: -60 million JPY (-0.5%)
Net sales fell off in Japan due to overstocking and production cutbacks by domestic manufacturers

due to a warm winter and the end to the post-pandemic surge in demand, on top of a lingering lag indemand for products sold in Europe and the U.S. Net sales were also affected by the streamlining of
unprofitable businesses.

(Million JPY)

Japan

8,195 million JPY

Y/Y: -307 million JPY (-3.6%)

Asia
11,804

11,744

1,969 million JPY

Y/Y: +250 million JPY (+14.5%)

Europe & the U.S.

1,579 million JPY

Y/Y: -3 million JPY (-0.2%)
2023

W here innovation is the norm

2024

© 2024 MORITO CO.,LTD.

21

FY2024 1Q

Quarterly Financial Trends

1Q net sales lagged behind our forecast due to the slow recovery in Europe and the
U.S. and a drop in repeat orders from manufacturers due to a warm winter.

(Million JPY)

14,00013,00012,00011,00010,000
9,000
8,000
7,000
6,000
5,000
1Q

2Q

3Q
2020

W here innovation is the norm

4Q

1Q

2Q
2021

3Q

4Q

1Q

2Q
2022

3Q

4Q

1Q

2Q

3Q
2023

4Q

1Q
2024

© 2024 MORITO CO.,LTD.

22

FY2024 1Q

Gross Profit

Gross profit: 3,378 million JPY Y/Y: +146 million JPY (+4.5%)
Increased due to improved gross profit ratio.
Since Morito Japan’s split last year, awareness of profit margins has continued toincrease among corporate managers and sales personnel of each company.

(Million JPY)
(Million JPY)

FY2023

3,232

2023

W here innovation is the norm

3,378

2024

FY2024

Increase/
Decrease

Y/Y

Net sales

11,804

11,744-60-0.5%

Gross profit

3,232

3,378

+146

+4.5%

Gross profit
ratio

27.4%

28.8%

Cost

2,613

2,715

+102

+3.9%

Operatingprofit

619

662

+43

+7.0%

Ordinary profit

661

669

+8

+1.2%

Net income

516

564

+48

+9.4%

© 2024 MORITO CO.,LTD.

23

FY2024 1Q

Trends in Net Sales & Gross Profit Ratio

The gross profit ratio improved due to rising awareness of profit margins, which resulted
in the streamlining of unprofitable businesses, changes in sales terms and conditions, etc.

(Million JPY)

1Q net sales

2Q-4Q total net sales(cumulative)

Gross profit ratio
30%

50,00028%

40,000
Forecast

30,00026%

20,00024%

10,000

22%

0

20%
2014

W here innovation is the norm

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

© 2024 MORITO CO.,LTD.

24

FY2024 1Q

Operating Profit

Operating profit: 662 million JPY

Y/Y: +43 million JPY (+7.0%)

Increased due to higher gross profit. Cost increased due to personnel, travel, andother expenses.

(Million JPY)
(Million JPY)

FY2023662
619

W here innovation is the norm

2024

Increase/
Decrease

Y/Y

Net sales

11,804

11,744-60-0.5%

Gross profit

3,232

3,378

+146

+4.5%

Gross profit
ratio

27.4%

28.8%

Cost

2,613

2,715

+102

+3.9%

Cost ratio

22.1%

23.1%

619

662

+43

+7.0%

5.2%

5.6%

Ordinary profit

661

669

+8

+1.2%

Net income

516

564

+48

+9.4%

OperatingprofitOperatingprofit ratio

2023

FY2024© 2024 MORITO CO.,LTD.

25

FY2024 1Q

Ordinary Profit

Ordinary profit: 669 million JPY

Y/Y: +8 million JPY (+1.2%)

Increased due to higher operating profit.

(Million JPY)
(Million JPY)

661

2023

W here innovation is the norm

FY2023669

2024

FY2024

Increase/
Decrease

Y/Y

Net sales

11,804

11,744-60-0.5%

Gross profit

3,232

3,378

+146

+4.5%

Cost

2,613

2,715

+102

+3.9%

619

662

+43

+7.0%

5.2%

5.6%

Ordinary profit

661

669

+8

+1.2%

Ordinary profit
ratio

5.6%

5.7%

Net income

516

564

+48

+9.4%

Net income
ratio

4.4%

4.8%

OperatingprofitOperatingprofit ratio© 2024 MORITO CO.,LTD.

26

FY2024 1Q

Net Income

Net income: 564 million JPY

Y/Y: +48 million JPY (+9.4%)

Increased due to an increase in extraordinary income, including gains onsales of investment securities.

(Million JPY)
(Million JPY)

564
516

2023

W here innovation is the norm

Increase/
Decrease

FY2023

FY2024

Net sales

11,804

11,744-60-0.5%

Gross profit

3,232

3,378

+146

+4.5%

Cost

2,613

2,715

+102

+3.9%

619

662

+43

+7.0%

661

669

+8

+1.2%

5.6%

5.7%

Net income

516

564

+48

+9.4%

Net income
ratio

4.4%

4.8%

OperatingprofitOrdinary
profitOrdinary
profit ratio

Y/Y

2024

© 2024 MORITO CO.,LTD.

27

FY2024 1Q

Consolidated Balance Sheet(Million JPY)

2023 4Q

2024 1Q

2023 4Q

Assets2024 1Q

Liabilities
Current liabilities

7,743

8,589

(-846)

Current assets

31,14930,021

Fixed liabilities

4,382

4,251

Total liabilities

12,972

11,994(-1,128)(-131)(-978)Net assets
Shareholders’equityFixed assets

20,28019,778(-502)

Accumulated
othercomprehensive
income32,67332,458(-215)

5,335

5,760

(-425)

Share acquisitionrights23

Total net assets

38,457

Total liabilities andnet assets

51,42912(-11)

37,805
Total assets

51,42949,800(-1,629)

Equity ratio

W here innovation is the norm(-652)

49,800(-1,629)2024.1Q(2023.4Q

75.9%
74.7%)© 2024 MORITO CO.,LTD.

28

4
FY2024.11 1Q Business Overview© 2024 MORITO CO.,LTD.

29

FY2024 1Q

Net Sales by Region(Million JPY)

Japan

8,502

Asia

8,195
1,719

2023

Y/Y

2024

-307 million JPY(-3.6%)

W here innovation is the norm

2023

Y/Y

Europe & the U.S.

1,969

2024

+250 million JPY(+14.5%)

1,582

1,579

2023

2024

Y/Y

-3 million JPY(-0.2%)© 2024 MORITO CO.,LTD.

30

FY2024 1Q

Net Sales for Apparel BusinessNet sales: 5,131 million JPY
Y/Y: -27 million JPY (-0.5%)
Sales of products sold in Europe and the U.S. remain weak, but there were signs of recovery. In Asia,
locally produced and procured products were adopted. The domestic market lagged behind due to adecrease in repeat orders for winter products due to a warm winter.

(Million JPY)

7,000

Japan
･ Increase in accessories for medical wear and bags sold in
Europe and the U.S.
･ Decrease in accessories for workwear and casual wear

6,000
5,000

Asia

4,000

･ Decrease in accessories for workwear in China and Hong
Kong
･ Increase in accessories for baby wear and casual wear in
China and Hong Kong
･ Increase in accessories for athletic shoes and workwearrelated products in Vietnam

3,000
2,000
1,000
0
1Q 2Q

3Q

4Q

1Q

2022
Japan

W here innovation is the norm

2Q

3Q
2023

Asia

4Q

1Q
2024

Europe & the U.S.

Europe & the U.S.
･ Increase in accessories for medical wear sold in the U.S.
･ Decrease in accessories for workwear in Europe© 2024 MORITO CO.,LTD.

31

FY2024 1Q

Net Sales for Product BusinessNet sales: 4,690 million JPY Y/Y: -230 million JPY (-4.7%)
Kitchen appliance-related services remained strong. Demand for active sports-related products that rose
during the COVID-19 pandemic subsided. A surge in demand is expected during the next Olympics.

(Million JPY)

6,000

Japan

5,000

･ Increase in products for one-coin shops and stationery
products･ Increase in kitchen appliance rental, sales, and cleaning
business･ Decrease in construction safety products･ Decrease in snowboard and surfboard-related products

4,000
3,000
2,000
1,000

Asia

0
1Q 2Q

3Q

4Q

1Q

2022
Japan

W here innovation is the norm

2Q

3Q
2023

Asia

4Q

1Q
2024

･ On a par with last year

Europe & the U.S.

© 2024 MORITO CO.,LTD.

32

FY2024 1Q

Net Sales for Transportation BusinessNet sales: 1,922 million JPY

Y/Y: +197 million JPY (+11.4%)

Although domestic production was idled due to the stoppage of factory operations by JAMA-affiliatedautomakers, the pace of production is expected to pick up in 2Q and onward to make up for the loss.
Sales in China increased due to the end of the zero-COVID policy. However, we plan to continue
withdrawing from unprofitable businesses.

(Million JPY)

2,500

Japan
･ Decrease in automotive interior components for Japanese
automotive manufacturers

2,000

1,500

Asia
1,000

･ Increase in automotive interior components for Japanese
automotive manufacturers in China

500

0
1Q 2Q

3Q

4Q

1Q

2022
Japan

W here innovation is the norm

2Q

3Q

2023
Asia

4Q

1Q

Europe & the U.S.

2024

Europe & the U.S.

･ Increase in automotive interior components forJapanese automotive manufacturers© 2024 MORITO CO.,LTD.

33

FY2024 1Q

Net Sales by Region (Quarterly)(Million JPY)

FY2024
1Q

Composition

Increase/
Decrease

Y/Y

Japan

8,195

69.8%

-307

-3.6%

Asia

1,969

16.8%

+250

+14.5%

1,579

13.4%

-3

-0.2%

11,744100.0%-60-0.5%

Europe &the U.S.
Total

FY2023Full year

Composition

Increase/
Decrease

8,841

34,070

70.2%

+554

+1.7%

1,739

2,383

7,705

15.9%

-635

-7.6%

1,654

1,763

1,754

6,753

13.9%

+132

+2.0%

12,344

11,403

12,97848,529100.0%

+51

+0.1%

1Q

2Q

3Q

4Q

Japan

8,502

8,826

7,901

Asia

1,719

1,864

Europe &the U.S.

1,582

Total

11,804

W here innovation is the norm

Y/Y© 2024 MORITO CO.,LTD.

34

FY2024 1Q

Sales Composition by Region

2023 1Q

2024 1Q

Europe &the U.S.
13%

Europe &the U.S.
13%

Asia
15%

Asia
17%
Japan
72%

Japan
70%

The percentage for Asia increased year on year due to the end of China’s zero-COVID policy.

W here innovation is the norm

© 2024 MORITO CO.,LTD.

35

FY2024 1Q

Sales Composition by Region & Business2023 1Q
Asia
11%

Asia
19%

Europe &

Japan
70%

Asia
3%

2024 1Q

the U.S.
19%

Japan
49%

Asia
4%

Transportation
14%

Japan
61%

Europe &the U.S.
20%

Transportation
16%
Apparel44%

Apparel44%
Product
42%
Japan
97%

Japan
49%

Product
40%

Asia
27%

Europe &the U.S.
24%

Japan
96%

Asia
28%

Europe &the U.S.
23%

The percentage for the product business decreased year on year due to the streamlining of unprofitable businesses.

W here innovation is the norm

© 2024 MORITO CO.,LTD.

36

6
Business Topics

W here innovation is the norm

© 2024 MORITO CO.,LTD.

37

Environmental Initiatives Rideeco®
We continued to focus on the development and sales of products using fabrics andmaterials made from discarded fishing nets, and our fabric was adopted by BEAMS
GOLF for its environmentally sustainable products. ▶ Click here for more information

Our fabric made from discarded fishing nets is used as the outer material of products
such as caddie bags, backpacks, and headcovers.

Where innovation is the norm

© 2024 MORITO CO.,LTD.

38

Environmental Initiatives Rideeco®

New Product, MURON

We started manufacturing MURON, a chemically recycled fiber made entirely fromdiscarded fishing nets collected in Japan. Chemical recycling makes producing
stable, high-quality fibers possible. Plans are in the works for adoption andcommercialization by several major ocean-related brands.

Development
process

1. Collect discarded fishing nets
2. Remove debris from discarded fishing nets
3. Turn discarded fishing nets into recycled nylon resin
4. Chemically recycle recycled nylon resin
Recycled fiber made entirely from discarded fishing nets collected in Japan*The images are for illustrative purposes only.

Where innovation is the norm

© 2024 MORITO CO.,LTD.

39

Group Company

Maneuverline Co., Ltd. (Product Business)

Maneuverline handles products related to active sports such as skateboarding andsurfing, which are attracting attention as official sports at the Paris Olympics. It carries
a number of brands professional athletes use. Serving as an agency, Maneuverline
designs and develops products originating in Japan, and sells products fitted with

Morito Group’s parts to create a synergistic effect. https://maneuverline.co.jp/<Examples of skateboard brands handled>etnies<Examples of marine leisure brands handled>

BAKER SKATEBOARDS®

CHANNEL ISLANDS®

RED PADDLE CO®

futures.®

CREATURES OF LEISURE®

DEATHWISH®

es®

Emerica®

Where innovation is the norm

SHAKE JUNT®

© 2024 MORITO CO.,LTD.

40

Appearance in Nikkei CNBC’s “Seme no IR: Market Breakthrough”
Morito’s Representative Director, CEO, Takaki Ichitsubo, made an appearance on the
program and talked about Morito’s business, its strengths, and future growth strategies.

Where innovation is the norm

© 2024 MORITO CO.,LTD.

41

(FYI) Media Coverage● Ice-Spike was featured on TV programs, etc. as an antislip footwear solution for walking on snowy surfaces.

● Our puncture-resistant safety insole was featured on
Yahoo! News, etc. as a disaster prevention product.
https://nikkan-spa.jp/1969729?cx_clicks_art_mdl=2_title● New ALL WEATHER HIGH SPEC WEAR products
were featured on Yahoo! News, etc.
https://www.goodspress.jp/news/588146/

Where innovation is the norm

© 2024 MORITO CO.,LTD.

42

7Shareholder Returns

W here innovation is the norm

© 2024 MORITO CO.,LTD.

43

Basic Dividend Policy
We regard returning profits to shareholders as one of the most importantmanagement issues, and determine the amount of dividends based on the following
policy, taking into consideration investment projects and financial conditions (netassets, etc.).

Realize stable andcontinuous dividend
payments

Dividend payout
ratio of 50% or
more
in relation to profit
attributable to owners ofparent is the standard

Continue to consider buying back shares whenevernecessary and canceling them appropriately

W here innovation is the norm

Standard of
a dividend on equity(DOE) ratio of 4.0%
(on a consolidated basis)* 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 consideration of thecorresponding impact.

© 2024 MORITO CO.,LTD.

44

Trends of Dividend, Dividend Payout Ratio & DOE

We adopted a revised basic dividend policy in FY2023.
60.0
50.0
Forecast

Annual Ordinary
Dividend (JPY)

40.0
Commemorative
Dividend (JPY)

30.0
20.0

Forecast

Net Income (100Million JPY)

Fo
re
ca
st

10.0
0.0
2018

2019

2020

2021

2022

2023

2024
(forecast)

12.5

14.0

4.7

14.0

16.7

22.1

23.0

25.0

26.0

18.0

26.0

29.0

55.0

58.0

12.5

13.0

13.25

9.0

13.5

27.0

29.0

12.5

13.0

4.75

17.0

18.5

28.0

29.0

Dividend payout ratio (%)

54.7

50.8

104.8

50.6

51.4

66.2

67.1

DOE (%)

2.1

2.2

1.5

2.2

2.4

3.9

4.0

Net income (100 million
JPY)
Annual dividend per share(JPY)
Interim dividend per share(JPY)
Year-end dividend pershare (JPY)

W here innovation is the norm

© 2024 MORITO CO.,LTD.

45

Disclaimer
This handout has been prepared only for information purposes and is not intended tosolicit investment.
Although this handout is made with extreme care, its completeness cannot be
guaranteed.
We assume no responsibility whatsoever for any damages resulting from the contents.
The financial results forecasts and forward-looking statements in this presentation are
made with information known as of the day of presentation and contain 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
4-2-4, Minami Honmachi, Chuo-ku, Osaka 541-0054 Japan

MORITO CO., LTD.

E-mail: ir@morito.co.jp

Investor Relations /Public Relations Department

W here innovation is the norm

© 2024 MORITO CO.,LTD.

46

Where innovation is the norm

W here innovation is the norm

© 2024 MORITO CO., LTD.

47