●

January 14, 2014
MORITO CO., LTD.
Financial Statement (Unaudited)
For the Fiscal Year ended November 30, 2013
(Translated from the Japanese original)
Corporate Information
Code：9837 Listings：Second Section of the Tokyo Stock Exchange(URL
http: www.morito.co.jp/english/index.html ）Representative： Takaki Ichitsubo
Representative Director and President
Contact：
Masato Kimoto
Director, Executive Officer and Division Manager
Telephone: +81-6-6252-3551
Scheduled date of annual general meeting of shareholders:
Scheduled date of dividend payment:
Scheduled date of filling of Security Report:
Supplementary explanation material for financial results:
Presentation meeting for financial results:

February 27, 2014
February 28, 2014
February 28, 2014
Yes
Yes (for analyst and institution investors)(Amounts rounded down)
1. Consolidated Financial Results for Fiscal Year 2013 (December 1, 2012 through November 30, 2013)(1) Consolidated Financial Results(Percentages indicate year-on-year changes)
Net sales
Operating income
Ordinary income
Net income
Millions of yen
Millions of yen
Millions of yen
Millions of Yen%%%%
33,145
1,390
1,699
1,081
FY 2013
5.2
0.1
20.9
37.3
21,521
1,398
1,405
787
FY 2012
1.3
-7.7
5.1
45.3
(Note) Comprehensive income: 2,669 million yen (93.5%) (FY 2013) 1,379 million yen (214.8%) (FY 2012)

FY 2013
FY 2012Net income
Per share
Yen
74.69
54.20

Fully diluted net
income per share
Yen-

Ratio ofordinary income
to total assets
%
5.0
4.4

Returnon equity
%
4.1
3.2

Ratio ofoperating income
to net sales
%
4.2
4.4

(Note) Equity in earnings (losses) of affiliates: (16) million yen for FY 2013, (53) million yen for FY 2012
(2) Consolidated Financial Position
Total assets
Millions of yen
FY 201335,813
FY 201232,777

Net assets
Millions of yen
27,352
24,889(Note) Equity capital: 27,352 million yen (FY 2013)(3) Consolidated Cash Flows
Cash flows fromoperating activities
Millions of yen
FY 2013683
FY 20121,053

Equity ratio
%
76.4
75.9

Net assets per share
Yen
1,888.11
1,718.15

24,889 million yen (FY 2012)

Cash flows frominvesting activities
Millions of yen
-285
-170

Cash flows fromfinancing activities
Millions of yen
-346
-347

Cash and cash equivalents
at the end of period
Millions of yen
6,366
5,771

2. DividendsFirstquarterend

Dividends per share
SecondThird
Fiscalquarterquarter- year-end
end
end

AnnualTotal dividends

Millions of yen

FY 2013
FY 2012

Yen
-

Yen
8.50
9.00

Yen
-

Yen
8.50
11.00

Yen
17.00
20.00

FY 2014

-

12.00

-

12.00

24.00

Dividends
Payout ratio(Consolidated)(Annual)

%
31.4
26.8

246
293

Ratio ofdividends to
net assets(Consolidated)
%
1.0
1.1

29.0

(Forecast)

3. Consolidated Forecast for FY 2014 (December 1, 2013 through November 30, 2014）(Percentages represent changes from corresponding period of previous year)

First half
Full year

Net sales
Millions of yen
17,00037,000Net income
Millions of yen

%
9.6
11.6

Operating income
Millions of yen
%
700
16.7
1,700
22.2

%

Net income per share
YenFirst half

550

9.0

37.97

Full year

1,200

10.9

82.83

Ordinary profit
Millions of yen
%
850
2.3
1,800
5.9

* Notes(1) Changes of important subsidiaries during the period (changes of specific subsidiaries in accordance with changes in thescope of consolidation): None
(2) Changes in accounting policies and changes or restatement of accounting estimates(i) Changes in accounting policies caused by revision of accounting standards: Yes(ii) Changes in accounting policies other than (i):None(iii) Changes in accounting estimates:Yes(iv) Restatements:
None(3) Number of outstanding shares (common shares）(i) Number of outstanding shares, including treasury shares at end of period:
15,400,000 shares(as of November 30, 2013)
15,400,000 shares(as of November 30, 2012)(ii) Number of shares of treasury stock at end of period:
913,220 shares(as of November 30, 2013)
914,008 shares(as of November 30, 2012)(iii) Average outstanding number of shares during the period:
14,486,597 shares(FY 2013)
14,538,164 shares(FY 2012)

(Reference) Summary of Non-Consolidated Financial Results
1. Non-Consolidated Financial Results for FY 2013 (December 1, 2012 through November 30, 2013
(1)Non-Consolidated Financial Results(Percentages represent changes from corresponding period of previous year)
Net sales
Millions of yen

FY 2013
FY 2012FY 2013
FY 201225,41025,781%-1.4
0.2

Operating income
%
822
11.9
734
-11.0

Millions of yen

Net income
Per share

Fully diluted net
income per share

Yen
48.56
29.53

Yen
-

Ordinary income
%
1,115
11.2
1,003
2.5

Millions of yen

Net income
Millions of Yen

703
429

%
63.8
15.8

(2)Non-Consolidated Financial Position
Total assets
Millions of yen
32,23030,896

Net assets
Equity ratio
Millions of yen%
FY201324,96477.5
FY2012
23,894
77.3
yen(Note) Shareholder’s equity: 24,964 million yen (FY 2013) 23,894 million yen (FY 2012)

Net assets per share
Yen
1,723.29
1,649.47*Update on the Execution Status of Audit Procedures
As of the date on which this financial report was released, an audit of the financial statements, based on the Financial
Instruments and Exchange Law, had not been completed.
*Disclosure and other special notes regarding performance forecasts
The forecast above are based on information available to management as of the date on which these performance-related
figures were disclosed, and various factors may cause actual results to differ from these forecasts. For issues to keep in mind
when using the forecasts and criteria conditioned upon the forecasts, please refer to “1. Operating results, (1) Analysis ofoperating results” on page 3
The board of directors decided to introduce “Stock Granting Trust (J-ESOP)” at the meeting of board of directors held on
March 25, 2013 for the purpose of enhancement of employees’ motivation to improve stock prices and business performance.
Consequently, on April 30, 2013 Trust and Custody Service Bank, Ltd. acquired 196,000 shares of our shares. The shares held
by Trust and Custody Service Bank, ltd. is included in the treasury shares.

Index
1. Operating Results .................................................................................................................3(1) Analysis of Operating Results ........................................................................................3(2) Analysis of Financial Position ........................................................................................4(3) Basic policy on Payment of Dividends and Dividends for FY 2013 and FY 2014 .....4
2. Organization of the group ...................................................................................................6
3. Management Policy ..............................................................................................................8(1) Basic Management Policy ..............................................................................................8(2) Target Indicators ............................................................................................................8(3) Medium and Long-Term Management Strategy .........................................................8(4) Issues to be Addressed ....................................................................................................8(5) Other Material Matters ..................................................................................................8
4. Consolidated Financial Statements .....................................................................................9(1) Consolidated Balance Sheets..........................................................................................9(2) Consolidated Statements of Income and Consolidated Statements ofComprehensive Income ................................................................................................11(3) Consolidated Statements of Changes in Shareholders’ Equity .................................14(4) Consolidated Statement of Cash Flows .......................................................................17[Notes on assumption of going concern] ......................................................................19[Basis for preparation of consolidated financial statements] ........................................19[Changes in accounting principal] ................................................................................19[Additional Information] ..............................................................................................19
5. Non-Consolidated Financial Statements ..........................................................................22(1)Non-consolidated balance sheets ..................................................................................22(2)Non-Consolidated Statements of Income .....................................................................26(3)Non-Consolidated Statements of Changes in Shareholders’ Equity .........................28(4)Notes Regarding Non-Consolidated Financial Statement ..........................................31
6. Others ..................................................................................................................................32(1) Changes in Senior Managements ................................................................................32

1. Operating Results(1) Analysis of Operating Results(i) General condition of FY 2013
In the fiscal year ended November 30th, 2013, Japanese economy, the higher expectations arising from the economic recovery
plans and financial plans by the new cabinet has helped weakening yen trend and acceleration in rising stock prices. The businessenvironment surrounding Japanese companies show sign of improvement.
In the global economy, it has shown sign of modest recovery by the employment and housing markets in the U.S. economy, yet
uncertainty brought by stagnation arising from austerity measures in the E.U economy and slowing down caused by weaker
export in emerging economies including China and Brazil is still remaining.
In such a situation, our group is moving forward a growth strategy by expansion of global sales channel and production base,under the mid-long term plan ‘Transforming ourselves into a company with global growth’.
As a result, in the current fiscal year performance reach net sales ¥33,145 million (increased by 5.2% from a year earlier),
operating income ¥1,390 million (increased by 0.1% from a year earlier), ordinary income ¥1,699 million (increased by 20.9%
from a year earlier), net income ¥1,081 million (increased by 37.3% from a year earlier).
The exchange rate used for the consolidated financial statement of the current fiscal year end as below:¥97.75 to the U.S. dollar, ¥131.9 to the euro, ¥15.97 to the Chinese yuan, ¥12.61 to the Hong Kong dollar,¥3.31 to the Taiwan dollar, ¥0.0046 Vietnamese dong, ¥3.11 to the Thai baht.
The exchange rate used for the consolidated financial statement of the year earlier fiscal year end as below:¥77.61 to the U.S. dollar, ¥100.22 to the euro, ¥12.33 to the Chinese yuan, ¥10.01 to the Hong Kong dollar,¥2.65 to the Taiwan dollar, ¥0.0037 Vietnamese dong.

Segment information as below:[Japan]As for the apparel division, metal parts for casual wear sales steadily increased. On the other hand, working wear industry andfootwear industry sales decreased by inventory adjustment and so on.
In the consumer product division, sales of the protection against cold increased by the effects of a harsh winter. On the other
hand, the transportation segment decreased sales from Chinese problem, reaction to the expiry of the eco-car subsidies andshifting production base into overseas of automotive makers.
In addition, consumer accessory goods decreased sales, because of shrinking the market of compact digital camera.
As a result, net sales were ¥25,718 million (down 1.1% from a year earlier).
[Asia]
As for the apparel division, sales of parts for working wear to Europe and China and parts of baby apparel increased.
In the consumer product division, sales of the transportation product division increased for trending upward of vehicle
production.
As a result, net sales were ¥5,491 million (increased by 39.6% from a year earlier).
[Europe and America]
As for the apparel division, sales remained strong for parts of British royal warrant brands. On the other hand, sales of parts for
hi-end brands decreased from a year earlier.
In the consumer product division, new order of components for U.S. automotive makers contributes sales increase. As a result,net sales were ¥1,935 million (increased by 22.6% from a year earlier).
(ii) Outlook for the next fiscal year
Our group has put into practice with the mid-term plan "Transforming ourselves into a company with global growth." ending in
FY 2015. We are going to definite the growth businesses from both the strategy and finance perspective and expand ourbusinesses. In addition, we will seek to expand our business and improvement of enterprise value by new investment and M&A.
We will also improve our group enterprise value. We are practicing globalization and diversity of administrative division. At the
point of production bases, we satisfy the needs of our customer by maintenance of stable operation and continuous strength of
manufacturing facilities in Japan, China and ASEAN.
3

(2) Analysis of Financial Position(i) Assets, liability and net assets
Total assets stood at ¥35,813 million, increased by ¥3,036milion from a year earlier.
Total current assets reached ¥20,700 million, increased by ¥1,431 million from a year earlier. This change was principaliy due toincrease in notes and account receivable by ¥566 million and cash and cash equivalent by ¥255 million.
Total fixed assets came to ¥15,112 million, increased by ¥1,605 million from a year earlier. This change was mainly due toincrease in investment securities by ¥770 million and land by ¥323 million.
Total current liabilities reached ¥5,722 million, increased by ¥239 million from a year earlier.
Total fixed liabilities came to ¥2,738 million, increased by ¥333 million from a year earlier.
Total net assets became ¥27,352 million, increased by ¥2,463 million from a year earlier. Share holders’ equity ratio was 76.4%,
increased by 0.5% from a year earlier.
(ii) Cash flows
The overall situation regarding cash flow during the fiscal year was as follow:[Cash flows from operating activities]
Net cash provided by operating activities was ¥683 million (¥1,053 million provided in the same period of the previous fiscal
year). This change was mainly due to acquition of net income before taxes.
[Cash flows from investing activities]
Net cash used in investing activities was ¥285 million (compared with ¥170 million used in the same period of the previous
fiscal year).This change was principally due to refunds of time deposit and acquire tangible fixed asset.
[Cash flows from financing activities]
Net cash provided by financing activities was ¥346 million (compared with ¥347 million provided in the same period of theprevious fiscal year). The change was mainliy due to dividends.
As a result of the above and new consolidations KANE-M (THAILAND) CO., LTD. and ANNU ARE CO., LTD. , cash andcash equivalent was ¥6,366 million, increased by ¥594 million from a year earlier.
The following table shows financial indicators associated with cash flows.

Equity ratio
Equity ratio (market value basis)
Interest-bearing debt / cashflow ratio

FY 2011
75.3%
30.5%
57.9%

FY 2012
75.9%
33.1%
33.2%

FY 2013
76.4%
33.4%
51.2%

Interest coverage ratio

122.1

287.2

95.5

(Note)
Equity ratio = Equity capital / Total assets
Equity ratio (market value basis) = Market capitalization / Total Assets
Interest- bearing debt / cash flow ratio = Interest-bearing debt/net cash provided by operating activities
Interest coverage ratio = Operating cash flows / Interest paid
*Each indicator is calculated on a consolidated basis.
*Market capitalization is based on the year-end share price multipled by the number of shares issued and outstanding at year-end
not including treasury stocks.
*Operating cash flows refers to net cash provided by operating activities in the consolidated statement of cash flows.
*Interest-bearing debt include short-term loans payable on the consolidated balance sheet.
*The interest payments use the interest paid as recorded in the consolidated statement of cash flows.
(3) Basic policy on Payment of Dividends and Dividends for FY 2013 and FY 2014
The company’s basic dividend policy is to return the profit to our shareholders by reinforced financial ground and improved
profitability. In addition, we will use the internal reserve to invest for the long-term growth in the future.
4

Dividend was distributed in a manner that reflects the consolidated company result and financial standing.
・Continuous dividends payment
・Maintain DOE 1%・Basic policy of dividend payout ratio by 30%
During this fiscal year, we scheduled to propose the general meeting of shareholders to payout ¥11 per share as dividend of yearended. As a result, dividends for the subject fiscal year amount to ¥20 per share including the interim dividends of ¥9 per share.
The annual dividend for nexr fiscal year is planned ¥24 per share, consisting of an interim dividend of ¥12 per share and a yearend dividend of ¥12 per share.

52. Organization of the group
Our group consists of the parent company, 17 subsidiaries and 1 affiliate company. The group’s main business is sales andmanufacture of materials for daily-life: including apparel materials, parts for automotive, life style goods, and rental and cleaningof kitchen appliances etc.
◎:Consolidated subsidiaries: 13 companies ○:Non-consolidated subsidiaries: 4 companies □:Affiliates: 1 company◎ MORITO INDUSTRIAL CO., (H.K.) LTD. : Selling of apparel and consumer products◎ MORITO INDUTRIAL CO., (SHENZHEN) LTD. : Subsidiaries of Morito Industrial Co., (H.K.) Ltd. (100% owned)
Manufacturing of component of apparel and consumer products◎ MORITO (SHENZHEN) CO., LTD. : Subsidiaries of Morito Industrial Co., (H.K.) Ltd.(100% owned)
Manufacturing of component of apparel and consumer products◎ TAIWAN MORITO CO., LTD. : Selling and manufacturing of component of apparel and consumer products.
◎ KANE-M SHANGHAI CO., LTD. : Selling and manufacturing of component of apparel and consumer products.
◎ KANE-M INC. : Selling of component of apparel and consumer products.
◎ MORITO (EUROPE) B.V. : Selling of component of apparel and consumer products.
◎ KANE-M DANANG CO., LTD : Selling and manufacturing of component of apparel and consumer products, operation ofrental factories.
◎ MORITO VIETNAM CO., LTD. : Subsidiaries of KANE-M DANANG CO., LTD (100% owned)
Manufacturing and assembling of component of apparel and consumer products.
◎ KANE-M (THAILAND) CO., LTD. : Selling of component of electronic and automobile.
○ MORITO ISHIHARA AUTO PARTS (SHENZHEN) CO., LTD: Manufacturing and assembling of automotive equipments◎ ACE INDUSTRIAL MACHINERY CO., LTD. : Rental service, selling and cleaning of kitchen appliance○ IAKK SERVICE CO., LTD. : Subsidiaries of ACE SERVICE CO., LTD. (95%). Cleaning and construction of kitchen
exhaust system.
◎ COLOR FASTENER INDUSTRIAL CO., LTD. : Selling and manufacturing of consumer products.
◎ THREE RUNNERS CO., LTD. : Selling and manufacturing of sports supporter.
○ TRINTO CO., LTD. : Manufacturing of consumer products.
◎ANNU ARE CO., LTD. : Selling and manufacturing of bag and accessories.
□ Kuraray Fastening Co., Ltd. : Selling and manufacturing of hook and loop fastener.
(Note 1)
We established MORITO (SHENZHEN) CO., LTD. because of expiration of the proceeding license for SHENZHEN factory
belongs to MORITO INDUSTRIAL CO., (H.K.) LTD.
(Note 2)
KANE-M (THAILAND) CO., LTD and ANNU ARE CO., LTD. was included in the scope of consolidation for this consolidated
fiscal year as its importance has increased.

6

Business Flow Chart as follow:
Customer

ACE INDUSTRIAL
MACHINERY CO., LTD.

KANE-M, INC.

MORITO (EUROPE) B.V
IAKK SERVICE
CO., LTD.

MORITO INDUSTRIAL
CO., (H.K.) LTD.

MORITO(SHENZHEN)
CO., LTD.

Overseas
Customer

COLOR FASTENER
INDUSTRIAL
CO., LTD.

MORITOINDUTRIALCO.,(SHENZHEN)
LTD

KANE-M SHANGHAICO., LTD.

MORITO
CO., LTD.

THREE RUNNERS
CO., LTD.

TAIWAN MORITO
CO., LTD.

Kuraray Fastening
Co., Ltd.

MORITO VIETNAM
CO., LTD.

MORITO ISHIHARA
AUTO PARTS(SHENZHEN) CO., LTD
TRINTO CO., LTD.

KANE-M (THAILAND)
CO., LTD.

KANE-M DANANG
CO., LTD.

ANNU ARE CO., LTD.

7

GeneralUsers

3. Management Policy(1) Basic Management Policy
We manage business under the corporate principle of ‘DESIGN YOUR BRIGHT FUTURE WITH OUR VARIOUS PARTS’.
Basic management policy as below:
1. Expansion of growth business2. Aggressive new investment and M&A
3. Globalization of indirect departments
4. Global human resources and diversity(2) Target Indicators
We are in the middle of mid-term management plan from FY2011 to FY2015 ‘Transforming ourselves into a company with global
growth’. Our goal to be achieved at the FY 2015 is as below:
Consolidated sales:
40 billion yen
Consolidated operating sales:
2 billion yen
Consolidated ROE:
5%(3) Medium and Long-Term Management Strategy
Our medium and long-term management strategy is as below:
1.
2.
3.
4.
5.
6.
7.
8.

Enhance revenue base through investments in new businesses and mergers and acquisitions.
Develop a global sales network.
Stimulate Investor Relations and Public Relations to create fair share value.
Enhance technology exchange and the development of new materials with KURARAY Group.
Recruit and train global human resources, and global exchange of human resources.
Adopt a new enterprise resource planning (“ERP”) and prepare for IFRS.
Globalize core departments.
Improve financial control and asset management, tighten cash flow management.

(4) Issues to be Addressed
To achieve the goal, the Morito group will work to transform the revenue source structure with expanding the sales channel andcontinue stable and efficient production. In addition, we will seek to expand our business and improvement of enterprise value by
new investment and M&A. To support these activities, we maintain and enhance an internal audit system, such as adoption of a
new ERP, recruitment and training of global human resources, and development of strategic HR management.
Furthermore our group is enhancing cash management efficiency by introducing of global cash management system and improving
assets management. We also proceed aggressive IR and PR activities for improvement of enterprise value, and aim to stabilize offair share prices and stable dividend payments.
(5) Other Material Matters
Not applicable.

84. Consolidated Financial Statements(1) Consolidated Balance Sheets

FY 2012(As of November 30,2012)

FY 2013(As of November 30, 2013)

Thousands of yen

Thousands of yen

AssetsCurrent assets
Cash and deposits

6,566,776

6,822,058

Notes and accounts receivable

8,879,237

9,445,261

Commercial goods and finished goods

2,980,284

3,219,514

Work in process

39,80638,250Raw materials and supplies

133,300

204,859

Deferred tax assets

192,071

165,313

Other current assets

517,381

833,415

Allowance for doubtful accounts-39,014-27,761

19,269,844

20,700,912

5,403,960

5,463,952

Accumulated depreciation-3,556,679-3,524,941

Building and structures, net

1,847,281

1,939,011

Machinery and delivery equipment

1,303,220

1,116,235-1,008,787-713,448

294,432

402,787

Tools, furnitures and fixtures

2,101,048

2,149,463

Accumulated depreciation-1,848,545-1,882,504

252,503

266,958

5,973,590

6,297,541

125,209126,138

Accumulated depreciation-36,716-61,783

Lease assets, net

88,49364,355-229,501

8,456,300

9,200,154

Lease assetes

207,606

300,637

Other Intangible fixed assets

77,33082,826

Total intangible fixed assets

284,937

383,464

3,787,721

4,558,238

Long-term loans

267,202

267,531

Deferred tax

54,49751,158Other fixed assets

783,667

746,080

Allowance for doubtful account-126,779-94,012

Total investments and other fixed assets

4,766,309

5,528,997

Total current assets
Fixed assets
Tangible fixed assets
Building and structures

Accumulated depreciation
Machinery and delivery equipment, net

Tools, furnitures and fixtures, net
Land
Lease assets

Construction-in-process-in-process
Total tangible fixed assets
Intangible fixed assets

Investments and other fixed assets
Investment securities

9

Total fixed assets

13,507,547

15,112,616

Total assets

32,777,391

35,813,528

Notes and accounts payable

3,548,364

3,801,196

Short-term loans payable

350,000

350,000

Accrued tax payable

356,810

341,592

Reserve for bonuses

107,103

111,523

Reserve for director’s bonuses

30,40029,200

Other current liabilities

1,091,116

1,089,393

Total current liabilities

5,483,795

5,722,906

Deferred tax

299,985

623,891

Deferred tax assets for revaluation

875,791875,791

Provision for retirement benefits

784,458

753,817

Provision for director’s retirement benefit

157,687

179,887

Other fixed liabilities

286,608

304,649

Total fixed liabilities

2,404,531

2,738,038

7,888,327

8,460,945

Capital3,532,492

3,532,492

Capital surplus

3,386,004

3,386,099

Retained earnings

19,683,405

20,559,086

Treasury stock-672,472-671,920

25,929,429

26,805,757

Valuation difference on available-for-sale securities

624,833

1,250,653

Difference in revaluation of land

-714,198-714,198

Foreign currency translation adjustment-950,999

10,371-1,040,365

546,826--

Total net assets

24,889,064

27,352,583

Total liabilities and net assets

32,777,391

35,813,528

Liabilities
Current liabilities

Fixed liabilities

Total liabilities
Net Assets
Shareholders' equity

Total shareholders’ equity
Other comprehensive income

Total other comprehensive income
Minority interests10(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated statements of income
FY 2012(December 1, 2011 throughNovember 30, 2012)

FY 2013(December 1, 2012 throughNovember 30, 2013)

Thousands of yen

Thousands of yen

Net sales

31,521,553

33,145,597

Cost of sales

23,393,374

24,655,946

Gross profit

8,128,179

8,489,651

Salary2,186,325

2,349,417

Bonus

571,066

557,287

Welfare expense

513,460

564,076

Provision of retirement benefits

98,37964,152

Provision of officer’s bonus

30,05029,200

Provision for directors’ retirement benefits

23,72022,200

Postage

96,752

122,405

Freightage and packing expense

933,389

968,146

Provision of allowance for doubtful account35,886-11,102

Commission paid

321,440

404,620

Rental expense

328,068

351,080

Depreciation

254,254

255,851

Other selling, general and administrative expense

1,345,930

1,421,544

Total selling, general and administrative expense

6,738,725

7,098,879

1,389,454

1,390,772

Interest received

27,232

27,291Dividends received

84,49090,267

Rent on real estate

77,71685,460Foreign exchange gains

8,657

258,694

Commission received

6,258

2,881

Others37,47554,838

Total non-operating income

241,831519,434

3,701

4,615

Cash discount on sales

106,267

104,450

Depreciation expense of assets lent

16,364

14,223Equity in net loss of affiliates

53,367

16,479Others non-operating expense

46,286

71,259Total non-operating expense

225,986

211,028

Selling, general and administrative expenses

Operating Income
Non-operating income

Non-operating expenses
Interest paid

11Ordinary Income

1,405,298

1,699,177

198,967

1,026

Gains on sales of securities-

46,050Gain on negative goodwill

21,233-

Total Extra Ordinary Income

220,201

47,077

Losses on retirement of fixed assets

9,293

11,972Losses on sales of fixed assets

4,958

-

Losses on sales of investments in securities

1,800

-

Losses on revaluation of investments in securities

17,129

-

-

1,235

Impairment loss

95,715-

Reversal of foreign currency translation adjustment for
reducing the capital of controlled foreign subsidiaries

139,455-

Reversal of foreign currency translation adjustment for
liquidation the capital of controlled foreign subsidiaries

33,491-

Total extra ordinary loss

301,844

13,207

1,323,655

1,733,047

Corporate, inhabitant and business taxes

591,167

609,304

Adjustments to corporate and other taxes-58,078

41,765

Total income taxes

533,089

651,070

Income before minority interest

790,565

1,081,976

2,632

-

787,932

1,081,976

Extra ordinary income
Gains on sales of fixed assets

Extra ordinary expenses

Losses on revaluation of golf club membership

Net income before taxes and other adjustment

Minority interest
Net income

12Consolidated statements of comprehensive income
FY 2012(December 1, 2011 throughNovember 30, 2012)

FY 2013(December 1, 2012 throughNovember 30, 2013)

Thousands of yen

Thousands of yen

Income before minority interests
Other comprehensive income
Unrealized gain(loss) on available-for-sale securities
Land revaluation difference
Foreign currency translation adjustment

790,565

1,081,976

278,699
123,004
186,939625,820
961,371

Other comprehensive income

588,643

1,587,192

1,379,208

2,669,168

1,376,568
2,639

2,669,168-

Comprehensive income(Breakdown)Comprehensive income attribute to the parent
Comprehensive income attribute to theshareholders

minority13

(3) Consolidated Statements of Changes in Shareholders’ Equity
FY 2012(As of November 30,2012)

FY 2013(As of November 30, 2013)

Thousands of yen

Thousands of yen

Shareholders’ Equity
Capital stock
Balance at the beginning of current period

3,532,492

3,532,492--

3,532,492

3,532,492

3,386,004

3,386,004

Disposal of treasury stock-95

Total changes of items during the period-

95

3,386,004

3,386,099

19,150,276

19,683,405

Dividends from surplus-240,183-255,275

Net income

787,932

1,081,976

Reversal of revaluation reserve for land

31,651-

Changes for new consolidation-46,720

48,980Total changes of items during the period

533,129875,681

19,683,405

20,559,086-622,645-672,472

Purchase of treasury stock-49,826-614

Disposal of treasury stock

-

1,165

-49,826551-672,472-671,920

25,446,126

25,929,429

Dividends from surplus-240,183-255,275

Net income

787,932

1,081,976

Purchase of treasury stock-49,826-614

Disposal of treasury stock

-

1,260

31,651-46,270

48,980Change of items during the period
Total changes of items during the period
Balance at the end of current period
Capital surplus
Balance at the beginning of current period
Change of items during the period

Balance at the end of current period
Retained earnings
Balance at the beginning of current period
Change of items during the period

Balance at the end of current period
Treasury stock
Balance at the beginning of current period
Change of items during the period

Total changes of items during the period
Balance at the end of current period
Total shareholders’ equity
Balance at the beginning of current period
Change of items during the period

Reversal of revaluation reserve for land
Changes for new consolidation

14

Total changes of items during the period

483,302876,327

25,929,429

26,805,757

346,140

624,833

Net changes of items other than shareholders’ equity

278,692

625,820

Total changes of items during the period

278,692

625,820

624,833

1,250,653-805,551-714,198

Net changes of items other than shareholders’ equity

91,353-

Total changes of items during the period

91,353--714,198-714,198-1,137,939-950,999

Net changes of items other than shareholders’ equity

186,939

961,371

Total changes of items during the period

186,939

961,371-950,999

10,371-1,597,350-1,040,365

Net changes of items other than shareholders’ equity

556,985

1,587,192

Total changes of items during the period

556,985

1,587,192-1,040,365

546,826

37,793-

Net changes of items other than shareholders’ equity-37,793-

Total changes of items during the period-37,793---

23,886,569

24,889,064

Dividends from surplus-240,183-255,275

Net income

787,932

1,081,976

Purchase of treasury stock-49,826-614

Disposal of treasury stock

-

1,260

Reversal of revaluation reserve for land

31,651-

Changes for new consolidation-46,270

48,980Net changes of items other than shareholders’ equity

519,191

1,587,192

Balance at the end of current period
Accumulated other comprehensive income
Balance at the beginning of current period
Change of items during the period

Balance at the end of current period
Difference in revaluation of land
Balance at the beginning of current period
Change of items during the period

Balance at the end of current period
Foreign currency translation adjustment
Balance at the beginning of current period
Change of items during the period

Balance at the end of current period
Total accumulated other comprehensive income
Balance at the beginning of current period
Change of items during the period

Balance at the end of current period
Minority interest
Balance at the beginning of current period
Change of items during the period

Balance at the end of current period
Total net assets
Balance at the beginning of current period
Change of items during the period

15

Total changes of items during the period
Balance at the end of current period

16

1,002,494

2,463,519

24,889,064

27,352,583

(4) Consolidated Statement of Cash FlowsFY 2012(December 1, 2011 throughNovember 30, 2012)
Thousands of yen

FY 2013(December 1, 2012 throughNovember 30, 2013)
Thousands of yen

Cash flows from operating activities
Income (loss) before income taxes

1,323,655

1,733,047

Depreciation and amortization

299,068

345,275

Impairment loss

95,715-

Change in provision for bonus

4,970-10,648

Change provision for retirement benefits-7,754-30,640

Change in reverse for retirement benefits for officers-2,12922,200Change in allowance for doubtful accounts

16,181-46,418-111,723-117,559

3,701

4,615

Negative goodwill-21,233-

Equity in net income of affiliates

53.367

16,479Gains from sale of fixed assets-194,009-1,026

Gains from sale of investment securities

1,800-45,975

Loss on retirement of noncurrent assets

9,293

11,972

Profit from revaluation of investment securities

17,129

-

-

1,235

139,455-

33,491-

Change in notes and accounts

378,035

36,669Change in inventory-421,541

127,874

Change in account payable-176,104-310,732

Others-67,433-470,993

Subtotal

1,373,934

1,265,403

Proceed from interest and dividends income

111,427

117,659

Payment of interest-3,668-7,149-492,282-661,273

63,997-31,540

1,053,408

683,100

Decrease in time deposit-110,104-96,400

Increase in time deposit-

638,174-26,098-22.974

1,200

115,620

Purchase of stocks of affiliates-19,200-3,603Purchase of tangible fixed assets-149,140-836,100

Proceeds from sale for tangible fixed assets

552,916

4,785

Payments of loans receivable to affiliates-451,312-103,284

Proceeds from loans receivable

57,052

34,404

Others-25,642-15,892

Interest income and dividends income
Interest paid

Loss on revaluation of golf membership
Reversal of foreign currency translation adjustment for
reducing the capital of controlled foreign subsidiaries
Reversal of foreign currency translation adjustment for
liquidation the capital of controlled foreign subsidiaries

Payment of corporate tax
OthersNet cash(used in)provided by operating activities
Cash flows from investing activities

Purchase of investment securities
Increase of sale for investment securities

17

Net cash provided by (used in) investing activities-170,329-285,269-57,091-91,749-

1,260

Payments to acquire treasury stock-49,826-614

Payments of dividends-240,183-255,275-347,101-346,379

Effects of exchange rate on cash and cash equivalents

29,247445,498

Net increase (decrease) in cash and cash equivalents

565,255

496,949

5,067,524

5,771,740

138,989

97,673

5,771,740

6,366,363

Cash flows from financing activities
Repayments of lease obligations
Proceeds from sale from treasury stock

Net cash used in financing activities

Cash and cash equivalents at beginning of year
Cash and cash equivalents from newly consolidation
Cash and cash equivalents at fiscal year-end

18

(5) Notes regarding Consolidated Financial Statements[Notes on assumption of going concern]
Not applicable[Basis for preparation of consolidated financial statements]
The scope of consolidated financial reporting
The newly established MORITO (SHENZHEN) CO., LTD. have been included in scope of consolidated subsidiaries. In addition,
KANE-M (THAILAND) CO., LTD and ANNU ARE CO., LTD. have been added to the scope of consolidated subsidiaries as its
importance has increased.

[Changes in accounting principal][A change in an accounting policy that is difficult to distinguish from a change in an accounting estimate]In accordance with revisions to the Corporate Tax Law, the company and its domestic consolidated subsidiaries record
depreciation of tangible fixed assets purchased on and after December 1, 2012.
This change had no impact on operating profit, recurring profit or net income before income taxes.

[Additional Information]
The board resolved on the introduction of “Stock Granting Trust (J-ESOP)” at a meeting of board of directors held on March 25,
2014 to improve coeporatecorporate values and, thus, stock prices by (1) linking their benefits to the share price and financial
results of Morito and (2) sharing economic benefits with stakeholders. Consequently, on April 30, Trust and Custody Service
Bank, Ltd. acquires 196,000 shares of our securities.
Accounting treatment of J-ESOP, we have focused on the accounting treatment from the viewpoint of economic reality, theshares, assets, liabilities, costs, revenues, which related to the Trust Account are included on our balance sheets and statements ofincome.
As of the end of the fiscal year, the ESOP trust account held 196,000 shares of treasury stock.

19

[Segment Information]
1.

Fiscal 2012 (December 1, 2011 through November 30, 2012)
The information on net sales, income or loss, assets and other items by reportable segment

Net sales
Sales to external customers
Inter segment sales andtransfer
Total
Segment income
Segment asset
Other
Depreciation
Increases in tangible fixed assets
and intangible fixed assets(Thousands of yen)
Adjustment Consolidated(Note 1,3)
Statement
amount(Note 2)

Japan

Reportable Segment
Asia
EU and US

26,007,933
1,991,920

3,934,531
1,419,177

1,579,088
9,527

31,521,553
3,420,625-3,420,625

31,521,553-

27,999,854
1,258,383
23,908,013

5,353,709
336,655
4,125,976

1,588,615
48,353
1,038,840

34,942,179
1,643,392
29,072,830-3,420,625-253,938
3,704,561

31,521,553
1,389,454
32,777,391

247,222
343,746

45,775
11,159

6,070
7,105

299,068
362,011-

299,068
362,011

Total(Note)
1. Adjustment of -253,938 thousand yen includes 295,263 thousand yen -corporate expenses that are not distributed to eachreportable segment and other 41,324 thousand yen.
2. The amounts for income or losses in the reportable segments were subsequently adjusted with the amount of operating
income on the consolidated profit and loss statement.
3. The adjustment for segment asset includes elominaton of intersegment transaction -4,570,113 thousand yen and corporate
asset 8,274,674 thousand yen that have not been distributed to reportable segment.Corporate assets consists mainly of assets
not belonging to specific segment (cash and cash equivalent and investments in securities) and assets related toadministrative operations.
2.

Fiscal 2013 Fiscal 2012 (December 1, 2012 through November 30, 2013)
The information on net sales, income or loss, assets and other items by reportable segment

Net sales
Sales to external customers
Inter segment sales andtransfer
Total
Segment income
Segment asset
Other
Depreciation
Increases in tangible fixed assets
and intangible fixed assets(Thousands of yen)
Adjustment Consolidated(Note 1,3)
Statement
amount(Note 2)

Japan

Reportable Segment
Asia
EU and US

25,718,377
2,323,994

5,491,647
1,908,729

1,935,572
9,026

33,145,597
4,241,749-4,241,749

33,145,597-

28,042,371
1,349,547
24,171,135

7,400,376
315,619
5,449,072

1,944,598
30,236
1,263,888

37,387,346
1,695,403
30,884,095-4,241,749-304,631
4,929,433

33,145,597
1,390,772
35,813,528

207,311
816,484

126,787
93,055

11,17633,928345,275
943,468---

345,275
943,468

Total(Note)
1. Adjustment of -304,601 thousand yen includes 291,124 thousand yen -corporate expenses that are not distributed to eachreportable segment and other -13,507 thousand yen.
2. The amounts for income or losses in the reportable segments were subsequently adjusted with the amount of operating incomeon the consolidated profit and loss statement.
3. The adjustment for segment asset includes elominaton of intersegment transaction -4,701,505 thousand yen and corporate
asset 9,630,938 thousand yen that have not been distributed to reportable segment.Corporate assets consists mainly of assets notbelonging to specific segment (cash and cash equivalent and investments in securities) and assets related to administrative
operations.
20[Per share data]

Net assets per share

FY2012(December 1, 2011 throughNovember 30, 2012)
1,718.15 yen

FY2013(December 1, 2012 throughNovember 30, 2013)
1,888.11 yen

Net income per share

54.20 yen

74.69 yen

- yen

- yen

Item

Diluted net income per share(Note) The basis for calculating
1.

Net assets per share
FY2012(December 1, 2011 throughNovember 30, 2012)
24,889,064

FY2013(December 1, 2012 throughNovember 30, 2013)
27,352,583

24,889,064

27,352,583--

Number of issued stock (Thousand shares)

15,40015,400

Number of treasury stock (Thousand shares)

914

913

14,485

14,486FY2012(December 1, 2011 throughNovember 30, 2012)

FY2013(December 1, 2012 throughNovember 30, 2013)

787,932

1,081,976--

Net income relating to common stock

787,932

1,081,976

Shares on the average during the fiscal year (Thousand share)

14,53814,486

Adjustment for net income(Thousand yen)--

The increase of the number of the common stock(Thousand
share)--(Stock Acquition Rights)--

Description of dilutive shares that were not included in thecomputation of diluted net income per share

-

-

Item
The total net assets in the consolidated balance sheet (Thousandof yen)
The net assets associated with common stock (Thousand of yen )Major breakdown of differences (Thousand of yen)
Minority interests

Number of common stock for calculating the net assets per share2.

Net income per share and Diluted net income per share
Item
Net income per share
Net income(Thousand yen)
Share unallocated to common stock (Thousand shares)

Diluted net income per share(Thousand share)(Note) Shares on the average during the fiscal year included the treadury stock held by Trust & Custody Services Bank,
Ltd. to calculate the net income per share.
[Significant subsequent events]
Not applicable.

215. Non-Consolidated Financial Statements(1)Non-consolidated balance sheets
FY 2012(As of November 30,2012)

FY 2013(As of November 30, 2013)

Thousands of yen

Thousands of yen

AssetsCurrent assets
Cash and deposits

3,674,738

3,907,535

Notes receivable

3,078,509

3,248,599

Account receivable

4,977,665

5,123,825

Commercial goods and finished goods

2,178,368

2,107,235

Prepayment

15,364

10,444

Prepaid expense

44,75656,405

Deferred tax assets

149,699

84,071

Accrued income

4,930

5,202

Short loan receivable

33,60042,000

Short loan receivable to affiliates

110,284

115,380

Other receivable – Other

437,619355,234

Others23,594

5,661

Allowance for doubtful accounts-33,000-19,000

14,696,132

15,042,595

4,189,382

4,085,155

Accumulated depreciation-3,153,375-3,116,472

Buildings, net

1,036,006

968,683

267,150

269,902-222,455-201,939

44,69567,963657,242

268,965

Accumulated depreciation-521,869-191,478

Machinery equipment, net

135,373

77,487

9,034

5,105

Accumulated depreciation-6,743-5,105

Vehicles, net

2,290

-

Tools, furnitures and fixtures

1,673,469

1,631,596

Accumulated depreciation-1,486,083-1,462,334

187,386

169,2625,859,720

6,029,486

121,801

122,730

Accumulated depreciation-35,807-60,192

Lease assets, net

85,99462,537-88,968

Total current assets
Fixed assets
Tangible fixed assets
Buildings

Structures
Accumulated depreciation
Structures, net
Machinery and equipment

VehiclesTools, furnitures and fixtures, net
Land
Lease assets

Construction-in-process22

Total tangible fixed assets

7,351,466

7,464,388

Leasehold29,25029,250Software

9,742

13,628

Telephone subscription right

16,926

19,926

Lease assets

207,606

300,637

Other intangible fixed assets

2,575

2,103

Total intangible fixed assets

266,102362,547

Investment securities

3,054,658

3,961,445

Stocks of subsidiaries and affiliates

3,325,448

3,329,051

330

330

Investments of subsidiaries and affiliates

951,925

941,827

Long-term loan receivable

208,400

166,400

Long-term loan receivable to subsidiaries and affiliates

605,929568,716

Bankruptcy claims

111,02980,084Long-term accrued expense

2,148

4,941

Lease deposits

43,311

500

Security deposit

18,922

17,892

Membership

31,212

27,646

Insurance reserve

307,841

307,854

Other fixed assets

100,000

100,000

Allowance for doubtful account-178,000-146,000

Total investments and other fixed assets

8,583,158

9,360,690

Total fixed assets

16,200,727

17,187,626

Total assets

30,896,859

32,230,221

Intangible fixed assets

Investments and other fixed assets

Money invested23

FY 2012(As of November 30,2012)

FY 2013(As of November 30, 2013)

Thousands of yen

Thousands of yen

Liabilities
Current liabilities
Note payable

284,001

258,099

3,000,754

3,033,727

Short-term loans payable

350,000

350,000

Lease liabilities

69,353

94,590Accrued liabilities

364,903

287,581

Accrued expense

376,163410,269

Accrued income taxes payable

247,809199,246

Advance received

13,207

12,126

Deposit received

16,267

15,879Reserve for director’s bonuses

22,00022,000

Other current liabilities

116

196

Total current liabilities

4,744,399

4,683,717

Lease liabilities

214,092

229,759

Deferred tax liabilities

274,979

599,406

Deferred tax assets for revaluation

875,791875,791

Provision for retirement benefits

723,289

688,514

Provision for director’s retirement benefit

114,662

130,912Long-term deposit

50,282

51,938Asset retirement obligation

5,123

5,245

Total fixed liabilities

2,258,221

2,581,568

Total liabilities

7,002,620

7,265,285

3,532,492

3,532,492

3,319,065

3,319,065

66,93867,034

3,386,004

3,386,099

419,566

419,566

673,380

650,210

16,185,000

16,335,000

460,465

781,786

17,738,412

18,186,563-672,472-671,920

Account payable

Fixed liabilities

Net Assets
Shareholders' equity
CapitalCapital surplus
Legal capital surplus
Other legal capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for advance depreciation of noncurrent assets
Special reserve
Retained earnings brought forward
Total retained earnings
Treasury stock24

Total shareholders’ equity

23,984,436

24,433,233

Valuation difference on available-for-sale securities

624,001

1,245,901

Difference in revaluation of land

-714,198-714,198-90,197

531,702

Total net assets

23,894,239

24,964,935

Total liabilities and net assets

30,896,859

32,230,221

Valuation and translation adjustment

Total valuation and translation adjustment25つ(2)Non-Consolidated Statements of Income
FY 2012(December 1, 2011 throughNovember 30, 2012)

FY 2013(December 1, 2012 throughNovember 30, 2013)

Thousands of yen

Thousands of yen

Net sales
Net sales of goods

25,781,491

25,410,602

Beginning inventory

1,914,837

2,178,368

Purchases

20,321,424

19,741,556

Total

22,236,261

21,919,924

Ending inventory

2,178,368

2,107,235

Total cost of sales

20,057,893

19,812,689

Gross profit

5,723,597

5,597,912

Salary1,523,225

1,465,551

Bonus

466,206

452,261

Welfare expense

361,483

349,662

Commuting cost

69,84366,563

Director’s remuneration

132,348

140,540

Provision of retirement benefits

87,87753,659Provision of officer’s bonus

22,00022,000

Provision for directors’ retirement benefits

15,350

16,250

Postage57,19370,285

Freightage and packing expense862,205

856,332

Transportation and communication expense

195,743

180,307

Advertising expense

105,636

75,283Social expense

15,876

11,745

Sales commission

11,421

14,330

Provision of allowance for doubtful account37,903-16,535

Supplies expense

53,22447,814

Utility expense

36,89940,078Commission paid

240,282

282,053

Travel expense

44,35240,808

Repair cost

92,82696,443

Rental expense

175,791

157,259

Taxes and dues

88,772

86,146

Depreciation expense

178,133

159,583

Office tax

14,104

13,200Sanitation expense

23,22523,015

Other selling, general and administrative expense

76,98570,810Total selling, general and administrative expense

4,988,912

4,775,451

Cost of sales

Selling, general and administrative expenses

26

Operating income

734,685

822,461Interest received

15,801

16,978Dividends received

265,305

198,937

Rent on real estate

144,361

128,139

Commission received

3,016

2,522

Foreign exchange gains

24,414

149,485

Others27,121

14,228

Total non-operating income

480,021510,292

3,343

3,516

Cash discount on sales

106,240

104,433

Depreciation expense of assets lent

58,34637,903Claim expense

3,677

4,410

Others non-operating expense

39,51966,674

Total non-operating expense

211,126

216,938

1,003,580

1,115,815

8,074

-

Gains on sales of securities-

46,050Gain on negative goodwill

18,666-

Total extra ordinary income

26,71446,050Losses on retirement of fixed assets

8,320

9,121

Losses on sales of fixed assets

4,958

-

Losses on sales of investments in securities

1,800

-

-

1,235

Non-operating income

Non-operating expenses
Interest paid

Ordinary income
Extra ordinary income
Gains on sales of fixed assets

Extra ordinary expenses

Losses on revaluation of golf club membership
Losses on valuation of investments in capital of affiliates

17,129Impairment loss
Reversal of foreign currency translation adjustment for
reducing the capital of controlled foreign subsidiaries
Reversal of foreign currency translation adjustment for
liquidation the capital of controlled foreign subsidiaries

95,715-

139,455

Total extra ordinary loss

267,379

10,357

Net income before taxes and other adjustment

762,914

1,151,508

Corporate, inhabitant and business taxes

407,070

381,000

Adjustments to corporate and other taxes-73,487

67,081

Total income taxes

333,582448,081Net income

429,332

703,42727

(3)Non-Consolidated Statements of Changes in Shareholders’ Equity
FY 2012(As of November 30,2012)

FY 2013(As of November 30, 2013)

Thousands of yen

Thousands of yen

Shareholders’ Equity
Capital stock
Balance at the beginning of current period

3,532,492

3,532,492--

3,532,492

3,532,492

3,319,065

3,319,065--

3,319,065

3,319,065

66,93866,398-95
95

66,93867,034

3,386,004

3,386,004

-

95
95

3,386,004

3,386,099

419,556

419,556--

419,556

419,556

626,107673,380

Provision of reserve for advanced depreciation of fixed assets

47,272-

Reversal of reserve for advanced depreciation of fixed assets

47,272-23,169-23,169

673,380

650,210

Change of items during the period
Total changes of items during the period
Balance at the end of current period
Capital surplus
Balance at the beginning of current period
Change of items during the period
Total changes of items during the period
Balance at the end of current period
Other capital surplus
Balance at the beginning of current period
Change of items during the period
Disposition of treasury stock
Total changes of items during the period
Balance at the end of current period
Total capital surplus
Balance at the beginning of current period
Change of items during the period
Disposition of treasury stock
Total changes of items during the period
Balance at the end of current period
Retained earnings
Legal retained earnings
Balance at the beginning of current period
Change of items during the period
Total changes of items during the period
Balance at the end of current period
Other retained earnings
Reserve for advanced depreciation of fixed assets
Balance at the beginning of current period
Change of items during the period

Total changes of items during the period
Balance at the end of current period

28General reserve

16,035,000

16,185,000

150,000

150,000

150,000

150,000

16,185,000

16,335,000

436,938

460,465

Provision of reserve for advanced depreciation of fixed assets-47,272-

Reversal of reserve for advanced depreciation of fixed assets-

23,169Provision of general reserve-150,000-150,000

Dividends of surplus-240,183-255,275

Current net income

429,332

703,427

Reversal of revaluation reserve for land

31,651
23,527321,320

460,465

781,786

17,517,612

17,738,412

Provision of reserve for advanced depreciation of fixed assets--

Reversal of reserve for advanced depreciation of fixed assets--

Provision of general reserve--

Dividends of surplus-240,183-255,275

Current net income

429,332

703,427

Reversal of revaluation reserve for land

31,651
220,799

448,151

17,738,412

18,186,563-622,645-672,472

Purchase of treasury stock-49,826-614

Disposal of treasury stock

-

1,165

-49,826551-672,472-671,920

23,813,463

23,984,436

Dividends from surplus-240,183-255,275

Net income

429,332

703,427

Purchase of treasury stock-49,826-614

Disposal of treasury stock

-

1,260

Balance at the beginning of current period
Change of items during the period
Provision of general reserve
Total changes of items during the period
Balance at the end of current period
Earned surplus
Balance at the beginning of current period
Change of items during the period

Total changes of items during the period
Balance at the end of current period
Total retained earnings
Balance at the beginning of current period
Change of items during the period

Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the beginning of current period
Change of items during the period

Total changes of items during the period
Balance at the end of current period
Total shareholders’ equity
Balance at the beginning of current period
Change of items during the period

29

Reversal of revaluation reserve for land

31,651-

Total changes of items during the period

170,973448,797

23,984,436

24,433,233

346,035

624,001

277,966
277,966

621,899
621,899

624,001

1,245,901-805,551-714,198

91,35391,353--714,198-714,198-459,516-90,197

Net changes of items other than shareholders’ equity

369,319

621,899

Total changes of items during the period

369,319

621,899-90,197

531,702

23,353,946

23,894,239

Dividends from surplus-240,183-255,275

Net income

429,332

703,427

Purchase of treasury stock-49,826-614

Disposal of treasury stock

-

1,260

Reversal of revaluation reserve for land

31,651-

Net changes of items other than shareholders’ equity

369,319

621,899

Total changes of items during the period

540,292

1,070,696

23,894,239

24,964,935

Balance at the end of current period
Valuation and conversion adjustment
Other valuation difference on available-for-sale securities
Balance at the beginning of current period
Change of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
The difference in revaluation of land
Balance at the beginning of current period
Change of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Total Valuation and conversion adjustment
Balance at the beginning of current period
Change of items during the period

Balance at the end of current period
Total net assets
Balance at the beginning of current period
Change of items during the period

Balance at the end of current period

30

(4)Notes Regarding Non-Consolidated Financial Statement[Notes on assumption on going concern]
Not applicable[Changes in accounting policy]
In accordance with the amendent of the corporate tax laws, the method of depreciation for tangible fixed assets purchased on orafter December 1, 2012, has been changed to the method prescribed by the revised Income Tax Law.
This change had no impact on operating income, ordinary income and income before taxes and minority interest.

31

6. Others(1) Changes in Senior Managements(i) Changes in President
Not applicable(ii) Changes in other officers (Limited scheduled on Febrary 27 th, 2014)
1.

Newly appointed director candidate
Director Mitsuyuki Mouri(Present General Manager of Footwear Sales Department)
Director Kenji Kojima(Present General Manager of Legal Department)
Director Bunki Yano
(Present Executive Officer)

2.

Retiring directors
Director, Vice president Syuhei Ohyama
Senior Managing Director Masahiko Kawahara

3.

Newly appointed auditor candidate
Not applicable

4.

Retiring auditors
Not applicable32