MORITO CO.,LTD
1st section of TSE : 9837

Presentation Materials

for the Third Quarter of Fiscal Year Ended
November 30, 2021, Financial Results

October 2021

©2021 MORITO CO.,LTD.

1.

FY2021.11 3Q Financial Results

2.

FY2021.11 3Q Business Overview

3.

Revision of Forecast ofConsolidated Business Results

4.

Business Topics

5.

Shareholder Returns
1©2021 MORITO CO.,LTD.

FY2021 3Q

Progress & Highlights

・Impacts of closures and adjusting inventories indepartment stores and mass retailers caused by COVID19. Impact of reducing and stopping production byautomakers due to semiconductor shortage.
・Business for baby wear, medical wear and working
wear has remained firm. Sales of products related tooutdoor sports and activities increased.

・Compared to YoY, net sales +6%, operating income+164%, net income +352%.
・FY2021 full-year forecast revised upward.
2©2021 MORITO CO.,LTD.

FY2021 3Q Summary of Financial Results（Million JPY）

2020 3Q

2021 3Q

29,9427,750

31,802
8,272

25.9%

26.0%

7,331

7,168

Cost ratio

24.5%

22.5%

Operating income

418

1,104

Operating incomeratio

1.4%

3.5%

Ordinary income

417

1,259

Ordinary incomeratio

1.4%

4.0%

Net income

167757

Net income ratio

0.6%

2.4%

Net sales
Gross profit
Gross profit ratio

Cost

3

Increase/Decrease

Y/Y+1,860
+522

+6.2%
+6.7%

-163

-2.2%

+686

+163.7%+842+201.9%+590+352.1%©2021 MORITO CO.,LTD.

2021FY 3Q

Net Sales

Net sales： 31,802 million JPY
Y/Y： +1,860 million JPY（+6.2%）
Despite the impacts of COVID-19 and the semiconductor shortage, theapparel business such as babywear, medical wear, and working wear
has remained firm.
Japan
21,967million JPY
Y/Y +862 million JPY（+4.1%）

29,94231,802

Asia

5,963million JPY

Y/Y +705 million JPY （+13.4%）

Europe & the U.S. 3,871million JPY
2020

Y/Y +292 million JPY （+8.2%）

2021（million JPY）
4

©2021 MORITO CO.,LTD.

2021FY 3Q

Quarterly Financial Trends

Although the level of 2019FY 3Q wasn’t reached due to the impacts ofthe COVID-19 and semiconductor shortage, sales recovered mainly inthe apparel business and significantly exceeded 2020FY 3Q.
13,00012,00011,00010,000
9,000
8,000
7,000
6,000
5,000
（Million JPY） 1Q

2Q

3Q

2018

4Q

1Q

2Q

3Q

2019
54Q

1Q

2Q

3Q

2020

4Q

1Q

2Q

3Q

2021
©2021 MORITO CO.,LTD.

2021FY 3Q Gross Profit
Gross profit ： 8,272 million JPY
Increase in net sales
Improvement of profit ratio

Y/Y ： +522 million JPY（+6.7%）（Million JPY）
Increase/

2020 3Q 2021 3Q Decrease

8,272
7,750

2020

2021

Y/YNet sales

29,94231,802+1,860+6.2%

Gross profit

7,750

8,272+522+6.7%

Gross profit
ratio

25.9%

26.0%

7,331

7,168-163-2.2%418

1,104+686 +163.7%

417

1,259+842 +201.9%

167757+590 +352.1%

Cost
OperatingincomeOrdinary
incomeNet income

6©2021 MORITO CO.,LTD.

2021FY 3Q Trends in Net Sales &Gross Profit Ratio
Despite soaring raw material prices, a certain level of gross profit
ratio has been maintained.
3Q Total Net Sales

50,000

4Q Net Sales

Gross Profit Ratio

30.0%

40,00028.0%
Forecast

30,00026.0%

20,00024.0%

10,000

22.0%

0

20.0%

（Million JPY）

2013

20142015

2016

2017
72018

2019

2020

2021
©2021 MORITO CO.,LTD.

2021FY 3Q

Operating IncomeOperating income ： 1,104 million JPY
Y/Y ： +686 million JPY（+163.7%）
Increase in gross profit ratio
Decrease of cost（Million JPY）
Increase/

2020 3Q 2021 3Q Decrease

1,104418

2020

Net sales

29,94231,802+1,860+6.2%

Gross profit

7,750

8,272+522+6.7%

Gross profit
ratio

25.9%

26.0%

Cost

7,331

7,168-163-2.2%

Cost ratio

24.5%

22.5%

418

1,104

1.4%

3.5%

417

1,259+842 +201.9%

167

757+590 +352.1%

Operatingincome
Operatingincome ratio

2021

Y/Y

Ordinaryincome
Net income

8+686 +163.7%©2021 MORITO CO.,LTD.

2021FY 3Q

Ordinary Income

Ordinary Income ： 1,259 million JPY
Y/Y ： +842 million JPY（+201.9%）
Increase in operating income & non-operating income
Decrease of non-operating expenses（Million JPY）
Increase/

2020 3Q 2021 3Q Decrease

1,259

417

2020

2021

Y/YNet sales

29,94231,802+1,860+6.2%

Gross profit

7,750

8,272+522+6.7%

Gross profit
ratio

7,331

7,168-163-2.2%

Cost418

1,104+686 +163.7%

Cost ratio

1.4%

3.5%

Ordinaryincome

417

1,259

Ordinaryincome ratio

1.4%

4.0%

Net income

167757

Net income ratio

0.6%

2.4%

9+842 +201.9%+590 +352.1%©2021 MORITO CO.,LTD.

2021FY 3Q

Net Income

Net Income ： 757million JPY

Y/Y ： +590million JPY（+352.1%）

Increase in ordinary income(Million JPY）
Increase/

2020 3Q 2021 3Q Decrease757

Net sales

29,94231,802+1,860+6.2%

Gross profit

7,750

8,272+522+6.7%

Cost
OperatingincomeOrdinaryincome

7,331

7,168-163-2.2%

418

1,104+686 +163.7%

417

1,259+842 +201.9%

1.4%

4.0%

167757

0.6%

2.4%Ordinary
income ratio

167

2020

Net income

2021

Y/Y

Net incomeratio

10+590 +352.1%©2021 MORITO CO.,LTD.

2021FY 3Q

Balance Sheet(Million JPY）

2020 4Q

2021 3Q

2020 4Q

AssetsLiabilities

Current
liabilities

Currentassets

2021 3Q

6,927

6,794(-133)

25,496

Fixed liabilities

25,413

4,756

4,557(-199)(-83)

Total liabilities

11,684

11,351(-333)Net assets

Shareholders’equity30,51630,890(+374)

Fixed assets

18,201

Other
comprehensive
income19,202

1,441(+1,001)
Deferred assets

1(+876)0Total net assets

32,01543,699

33,264(+1,249)(-1)

Totalassets

2,317

Liabilities andnet assets

44,615(+916)

43,69944,615(+916)

Equity ratio
1174.4 ％（2020FY4Q 73.1 ％）©2021 MORITO CO.,LTD.

1.

FY2021.11 3Q Financial Results

2.

FY2021.11 3Q Business Overview

3.

Revision of Forecast ofConsolidated Business Results

4.

Business Topics

5.

Shareholder Returns
12©2021 MORITO CO.,LTD.

2021FY 3Q

Net Sales by Regions(Million JPY）

Asia

Japan

21,105

Europe & the U.S.

21,967
5,258

2020

2021

5,963

2020

2021

Y/Y +862million JPY

Y/Y ＋705million JPY（+4.1%）（＋13.4%）

13

3,579

3,871

2020

2021

Y/Y

+292million JPY（+8.2%）©2021 MORITO CO.,LTD.

2021FY 3Q

Net Sales by Regions（Japan）

While the impact of COVID-19 & the semiconductor shortage
continues, the apparel business is recovering, and the businessrelated sports & outdoor activities are also firm.
・Increase of accessories for casual wear,
sportswear, and products related to outdoor
activities(Million JPY）

10,000・Decrease of accessories for bags & shoes

9,000
8,000
7,000

・Increase of automotive interior components 6,000・Increase of products for one-coin shops

5,000

・Increase of products related supporters

4,000

・Increase of products related to PC such asmousepads

3,000

・Increase of products related to surfing andskateboard

1,000・Decrease of products related to snowboards

2,0000１Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q ２Q ３Q
20181420192020

2021©2021 MORITO CO.,LTD.

2021FY 3Q

Net Sales by Regions（Asia）

In China, the apparel business increased due to the acquisition of neworders, etc. The transportation business decreased due to adjustments
resulting from production transfers between manufacturers' plants.
(Million JPY）

2,500

・Increase of accessories to Europe andthe U.S. apparel manufacturers
in China & Hong Kong

2,0001,500

・Decrease of accessories to Japaneseapparel manufacturers in Thailand

1,000

・Decrease of automobile interiorcomponents to Japanese automotivemanufacturers in China

500

0１Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q ２Q ３Q
2018152019

2020

2021

©2021 MORITO CO.,LTD.

2021FY 3Q Net Sales by Regions（Europe & the U.S.）
Despite the impact of the semiconductor shortage, economicactivity has been recovering.
(Million JPY）

1,800

・Increase of accessories to apparel
manufacturers

1,600
1,400
1,200

・Increase of automotive interior
components to Japanese automotive
manufacturers in Europe

1,000800600400

・Decrease of automobile interior
components to Japanese automotive
manufacturers in the U.S.

200
0
１Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q ２Q ３Q ４Q １Q ２Q ３Q
20181620192020

2021©2021 MORITO CO.,LTD.

2021FY 3Q

Net Sales by Regions（Quarterly）(Million JPY）

2021FY３Q
３Q
Total

Composition

Increase/Decrease

21,967

69.1%

+862

+4.1%

1,884

5,963

18.8%

+705+13.4%

1,309

1,364

3,871

12.2%

+292+8.2%

10,596

10,57731,802100.0%+1,860+6.2%

１Q

２QJapan

7,347

7,291

7,329

Asia

2,083

1,996

Europe&the U.S.

1,198

Total

10,629Y/Y

2020FY
１Q

２Q

Total for the
first half

３Q

４Q

Total

Composition

Increase/
Decrease

Y/Y

Japan

7,902

7,062

6,141

21,105

7,705

28,81070.7%-4,452-13.4%

Asia

2,026

1,572

1,660

5,258

1,967

7,225

17.7%

+262+3.8%

Europe&the U.S.

1,242

1,393

9443,579

1,112

4,691

11.5%

-1,071-18.6%

Total

11,171

10,027

8,744

29,942

10,78540,727100.0%-5,260-11.4%

17©2021 MORITO CO.,LTD.

2021FY 3Q

Sales Composition by Region＜2020 3Q＞

＜2021 3Q＞

Europe &Europe &the U.S.

the U.S.

12%

12%

Asia
17%

Asia
19%

Japan

Japan
69%

71%

18

©2021 MORITO CO.,LTD.

2021FY 3Q
Business

Sales Composition by Region &＜2020 3Q＞
Japan

＜2021 3Q＞

Asia

Europe&Asia

41%

the U.S

38%

Japan

12%

47%
Asia

18%

4%

PD

the U.S

56%

48%
Asia

APTR
20%

3%

44%

PD

38%

Japan13%

Japan58%

TR

Europe&AP
44%

36%

Asia

Asia

19%
Japan
96%

23%
Europe&Europe&Japanthe U.S

96%

22%

the U.S

21%

AP：Apparel PD：Product TR: Transportation
19©2021 MORITO CO.,LTD.

1.

FY2021.11 3Q Financial Results

2.

FY2021.11 3Q Business Overview

3.

Revision of Forecast ofConsolidated Business Results

4.

Business Topics

5.

Shareholder Returns
20©2021 MORITO CO.,LTD.

Revision of Consolidated Financial Forecast
The consolidated financial forecast for 2021FY was revised byreviewing unprofitable businesses to improve profitability, continuous
cost improvement, and policy to promote the sale of CrossShareholdings for improvement of asset efficiency. (14th October 2021)
2021FY Full- Year 2021FY Full- Year
Forecast （Before Forecast(AfterRevision）
Revision)

Increase/Decrease

Y/Y

Net sales

43,00043,000+00.0%

Operating income

1,300

1,550

+250

+19.2%

3.0%

3.6%

1,300

1,700

+400

+30.8%

Ordinary income ratio

3.0%

4.0%

Net income

700

1,050

+350

+50.0%

1.6%

2.4%

Operating income ratio

Ordinary income

Net income ratio

21©2021 MORITO CO.,LTD.

2021FY 3Q

Forecast & Progress(Million JPY）

FY2021 FullYear Forecast

2021FY 3Q
Net sales
Operating income

31,802
1,104

43,0001,550

Operating income ratio

3.5%

3.6%

Ordinary income

1,259

1,700

Ordinary income ratio

4.0%

4.0%

Net income

757

1,050

2.4%

2.4%

Net income ratio

2020FY 3Q

2020FY 4Q

40,727856

Operating income ratio

1.4%

2.1%

Ordinary income

417

928

Ordinary income ratio

1.4%

2.3%

Net income

167

470

0.6%

1.2%

Net income ratio

2274.0%
71.2%
74.1%

72.1%

Progress

29,942418

Net sales
Operating income

Progress

52.0%
48.1%
43.2%

32.8%

©2021 MORITO CO.,LTD.

1.

FY2021.11 3Q Financial Results

2.

FY2021.11 3Q Business Overview

3.

Revision of Forecast ofConsolidated Business Results

4.

Business Topics

5.

Shareholder Returns
23©2021 MORITO CO.,LTD.

Morito Group Project to Develop Eco-friendly
Products, ”C.O.R.E.”

Production of bags made from discarded fishing nets(Upcycle）〈Japan Apparel & Product Business〉
We developed apparel accessories made by “REAMIDE®” recycledfrom discarded fishing nets, such as buttons, tapes, and fabric. We
use these apparel accessories and produce bags by collaboration
with the Hyogo Prefecture’s regional brand “Toyooka Kaban®”.

Sales started from 1st October 2021.
Online Shop：https://shop.artisan-atelier.net/c/special/gyomou
TOYOOKA KABAN KITTE MARUNOUCHITEN
24©2021 MORITO CO.,LTD.

A New Sense of Outdoor Brand ”POLeR”
POLeR TOKYO opened in Shibuya PARCO.
〈Japan Product Business〉
A new sense of outdoor brand ”POLeR” is mixed lifestyles such as
surfer, skateboarder and snowboarder. It is handled by the
consolidated subsidiary, CANVAS.

25©2021 MORITO CO.,LTD.

Strong Performance of Products Related toSkateboarding & Surfing〈 Japan Product Business 〉
Sales of products related to skateboard and surfing handled by
Maneuverline co., ltd. have expanded because their sports wereattracted attention by the Tokyo Olympics.
（Surfing）（Skateboard）

26©2021 MORITO CO.,LTD.

Company split of consolidated subsidiary
MORITO JAPAN〈 Japan Whole Company 〉
Our consolidated subsidiary, Morito Japan that engages in theapparel, products and transportation business will be split on 1stJune 2022 as the effective day to match business characteristics
and the surrounding environment.
※The impact of the company split will
MORITO JAPAN CO.,LTD.
（会社分割後）MORITO JAPAN CO.,LTD.

MORITO APPAREL
CO., LTD.

Specializing in the product business,
including semi-finished products andfinished products that utilize parts

Specializing in the apparel & sportsbusiness such as apparelaccessories

27

be minimal, because MORITO JAPANCO., LTD. and the companies to prepare
for its company split which will besucceeded to the businesses will becomplete subsidiaries of MORITO CO.,LTD..

MORITOAUTOPARTS CO.,LTD.
Specializing in the transportation
business such as automotive
interior components©2021 MORITO CO.,LTD.

Participation in the Nikkei IR & Individual
Investor Fair
〈 Japan Whole Company 〉
We participated in the company information session at the Nikkei IR& Individual Investor Fair held online in September 2021.
We introduced a company, business, and business that is expected togrow in the future.

※2021/9/24-25 “Nikkei IR & Individual Investor Fair 2021 Online" sponsored by Nikkei Inc.. All rights reserved.
28©2021 MORITO CO.,LTD.

1.

FY2021.11 3Q Financial Results

2.

FY2021.11 3Q Business Overview

3.

Revision of Forecast ofConsolidated Business Results

4.

Business Topics

5.

Shareholder Returns
29©2021 MORITO CO.,LTD.

Basic Dividend Policy

Maintain aRealize
dividend on
continuous
Dividend
equity (DOE)
dividend
payout ratio ofof 1.5%
payments
50%more in

relation 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.
※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.
30©2021 MORITO CO.,LTD.

Revision of Year-end Dividend Forecast
By revision of consolidated financial forecast, year-end dividend
forecast was revised based on basic dividend policy. (14th October2021)
Therefore, the annual dividends will be 20 JPY increased by 2 JPY.
The dividend payout ratio will be 52.2% and DOE will be 1.7％.
2ndQuarter-end
Fiscal Year
Ended Nov 30, 2021
（Before Revision）
Fiscal Year
Ended Nov 30, 2021
（After Revision）

Year-end

AnnualDividends

Increase/Decrease

JPYJPY

JPY

9.00

9.00

18.00

JPY

JPY

JPYJPY

9.00 11.00(Forecast)

20.00+ 2.0031―©2021 MORITO CO.,LTD.

Trends of Dividend, Dividend Payout Ratio &Basic Dividend Policy since 2017FYDOE
35.0
30.025.0■Annual Ordinary Dividend (JPY)

Listed on 1st TSE
Included 6.0 JPY as
Commemorative
Dividend

Commemorative Dividend（JPY）

110 years since
established
Included 1.0 JPY as
Commemorative
Dividend

Increase year-end
dividend (Forecast)by 2.0 yen■Net Income（Million JPY）

20.0
15.0
10.0
5.0
0.0

※

2015

2016

2017

2018

2019

2020

2021（Forecast）

Net income（Million JPY）

14.3

11.8

33.0

12.5

14.0

4.7

10.5

Annual dividend per share（JPY)

14.5

17.0

28.0

25.0

26.0

18.0

20.0

Interim dividend per share（JPY）

7.0

8.0

14.0

12.5

13.0

13.25

9.0

Year-end dividend per share(JPY）

7.5

9.0

14.0

12.5

13.0

4.75

11.0

Dividend payout ratio（％）

29.3

41.0

23.5

54.7

50.8

104.8

52.2

ＤＯＥ（％）

1.37

1.692.42

2.13

2.22

1.53

1.7

※ 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%.
32©2021 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
33©2021 MORITO CO.,LTD.