October 9, 2015
MORITO CO., LTD.
Financial Statement (Unaudited)
For the Third Quarters of the Fiscal Year ended November 30, 2015
(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：
Kenji Kojima
Director, Executive Officer and General Manager of Control Division
Telephone: +81-6-6252-3551
Scheduled date of filing of Quarterly Report
Scheduled date of dividend payment:
Supplementary explanation material for quarterly financial results:
Presentation meeting for quarterly financial results:

October 15, 2015
－
None
None

(Amounts rounded down)
1. Consolidated Financial Results for the Third Quarter of Fiscal Year 2015(December 1, 2014 through May 31, 2015)(1) Consolidated Financial Results(Percentages indicate year-on-year changes)

Net sales
Millions of yen

Operating income%

Millions of yen

3Q of
32,35325.0
1,236
FY 2015
3Q of
25,8899.8
919
FY 2014(Note) Comprehensive income: 2,556million yen (105.5%)
Net income
Per share
Yen
27.51

Ordinary income

Net income%

Millions of yen%

Millions of yen

%

34.5

1,397

35.8

797

△23.4

11.3

1,028

△8.3

1,040

51.2

(3Q of FY 2015)

1,243million yen (△42.8%) (3Q of FY 2014)

Fully diluted net
Income per share
Yen
-

3Q of
FY 2015
3Q of
35.90
FY 2014(Note) On July 1, 2014, Morito conducted a two-for-one split on shares of common stock. Consequently, ”net income pershare ” have been computed as if the stock split had been conducted at the beginning of the fiscal year ended November 30, 2014
(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
Millions of yen
Millions of yen%
3Q of
47,711
31,68866.4
FY 2015
FY 201445,59329,48864.7(Reference) Equity capital: 31,688million yen (3Q of FY 2015)
29,488 million yen (FY 2014)
2. DividendsFirstquarterend
Yen-

Dividends per share
SecondThird
Fiscalquarter- quarteryearend
end
end
Yen
Yen
Yen
12.00
6.50
7.00
7.00

Total
(Annual)Yen
FY 2014
FY 2015
FY 2015
14.00(Forecast)(Note)
Revision of consolidated earnings forecast to the latest announcement: None
On July 1, 2014, Morito conducted a two-for-one split on shares of common stock. Consequently, Year-end dividends
for fiscal year ended November 30, 2014, are indicated at the amounts after the stock split.

3. Consolidated Forecast for FY 2015 (December 1, 2014 through November 30, 2015)(Percentages represent changes from corresponding period of previous year)
Net Sales
Operating income
Ordinary profit
Millions of yen%
Millions of yen%
Millions of yen%
Full year
43,000
19.9
1,700
18.9
1,800
4.1
Net income
Net income per share
Millions of yen%
Yen
Full year
1,400
10.2
48.32
(Note)
Revision of consolidated earnings forecast to the latest announcement: Yes*Notes(1) Changes of important subsidiaries during the period (changes of specific subsidiaries in accordance with changes in thescope of consolidation): None
Newly included: None
Extended company: None
(2) Adoption of special accounting treatment for preparing quarterly consolidated financial statements: None
(3) 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:
None
(iv)
Restatements:
None(Note) For details, please refer to ‘Matters Concerning Summary Information (Note) (3) Changes in accounting policy, Changes
in accounting estimates and Revision restated’ on page 3 of the Attachment.
(4) Number of outstanding shares (common shares）(i)
Number of outstanding shares, including treasury shares at end of period:
30,800,000 shares (as of September 31, 2015)
30,800,000 shares (as of November 30, 2014)(ii) Number of shares of treasury stock at end of period:
1,826,526 shares(as of September 31, 2015)
1,826,516 shares(as of November 30, 2014)(iii) Average outstanding number of shares during the period:
28,973,484 shares(the Third quarter of FY 2015)
28,973,560 shares(the Third quarter of FY 2014)(Note) On July 1, 2014, Morito conducted a two-for-one split on shares of common stock. Consequently, the number of endof the period treasury stock shares, and the average number of shares during the period are calculated on the assumption thatthe said stock split was implemented at the beginning of the previous fiscal year.
*Status of execution of the quarterly review of financial statement
At the time of publication of this quarterly financial results release, the review procedures for the quarterly financial statements
based on the Financial Instruments and Exchange Law were 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 whenusing the forecasts and criteria conditioned upon the forecasts, please refer to”1Qualitative Information for the Period
under Review(1) Business Performance” on page 4
We have also introduced “Stock Granting Trust (J-ESOP)”and “Board Incentive Plan(BIP)”. Consequently, the shares held byTrust and Custody Service Bank, ltd. and The Master Trust Bank of Japan, ltd. are included in the treasury shares.

(Unaudited)Index
1. Qualitative Information for the Period under Review ...............................................................................................4(1) Business Performance ..........................................................................................................................................4(2) Forecast of Consolidated Business Results and Other Forward-looking Information .................................................4
2. Matters Concerning Summary Information .............................................................................................................5(1)Changes in Important Subsidiaries during the period under Review .........................................................................5(2)Adoption of Special Accounting Treatment for Preparing Quarterly Consolidated Financial Statement .......................5(3)Changes in Accounting Policies, Changes in Accounting Estimates and Revision Restated ........................................5(4)Additional Information .........................................................................................................................................5
3. Quarterly Consolidated Financial Statements ..........................................................................................................6(1)
Quarterly Consolidated Balance Sheets ...........................................................................................................6(2)
Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ...............7
Quarterly Consolidated statements of income .............................................................................................................7(3)
Notes regarding Quarterly Consolidated Financial Statements...........................................................................9[Notes on assumption of going concern] ........................................................................................................................9[Notes on a Significant Change in Shareholders’ Equity] .................................................................................................9[Segment Information]..................................................................................................................................................9(Unaudited)

1. Qualitative Information for the Period under Review(1) Business Performance
In the Third quarterly(From 1st December, 2014 to 31st August, 2015) of the fiscal year ended November 30th, 2015, theJapanese economy has shown signs of modest recovery by weakening yen, additional money easing, corporate capital
expenditure, improvement in employment environment. However, the progress of recovery is still slow, and the estrangement
between the expectations for the future of the economy and real economy is not contracting.
In the global economy, the economic recovery of the U.S. and other developed countries economy are expected to continue, but,the European debt crisis and slowdown in economic expansion and currency devaluation in China. So, the total worldwide
economy is still uncertainly.
In such a situation, our group is moving forward a growth strategy by expansion of a 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 quarterly performance reach net sales ¥32,353million (increased by 25.0% from a year earlier),
operating income ¥1,236 million (increased by 34.5% from a year earlier), ordinary income ¥1,397 million (increased by 35.8%
from a year earlier), net income ¥797 million (decreased by 23.4% from a year earlier).
The exchange rate used for the consolidated financial statement of the current quarter end as below:¥122.48 to the U.S. dollar, ¥137.20 to the euro, ¥19.74 to the Chinese yuan, ¥15.80 to the Hong Kong dollar,¥3.97 to the Taiwan dollar, ¥0.0056 to the Vietnamese dong, ¥3.64 to the Thai baht.
The exchange rate used for the consolidated financial statement of the year earlier quarter end as below:¥101.30 to the U.S. dollar, ¥138.21 to the euro, ¥16.31 to the Chinese yuan, ¥13.07 to the Hong Kong dollar,¥3.39 to the Taiwan dollar, ¥0.0048 to the Vietnamese dong, ¥3.11 to the Thai baht.

Segment information as below[Japan]As for the apparel division, sales of the accessories for major retailers and sports apparel manufacturer in Japan, EU and the
U.S. are increased.
In the consumer product division, sales of stationary, school bag, OEM products for camera, shoes are increased.
As a result, net sales were ¥20,792 million (increased by 3.7% from a year earlier).
[Asia]
As for the apparel division, sales of the accessories for EU and U.S. infant’s wear, outer and casual wear manufacturer are
increased.
In the consumer product division, OEM products for Camera, and sales of the automobile interior component for Japanese automakers are increased.
From the current fiscal year, the performance of GSG (SCOVILL) FASTENERS ASIA LIMITED and SCOVILL FASTENERS
INDIA PVT. LTD which became consolidated subsidiaries of our group are reflected.
As a result, net sales were ¥6,325 million (increased by 56.4% from a year earlier).
[Europe and the U.S.]
As for the apparel division, sales of the accessories for medical industry and uniform increased
In the consumer product division, sales of automobile interior article for Japanese automobile manufacture in the U.S. Also, thecomponent for camera in Europe increased.
From the current fiscal year, the performance of GSG FASTENERS, LLC and SCOVILL FASTENERS UK LIMITED whichbecame consolidated subsidiaries of our group are reflected.
As a result, net sales were ¥5,235 million (increased by 193.0% from a year earlier).

(2) Forecast of Consolidated Business Results and Other Forward-looking Information
Currently, there has been change in the consolidated forecast of FY2015, which was previously announced at January 14 th, 2015.

(Unaudited)
2. Matters Concerning Summary Information(1)Changes in Important Subsidiaries during the period under Review
Not applicable(2)Adoption of Special Accounting Treatment for Preparing Quarterly Consolidated Financial Statement
Not applicable.
(3)Changes in Accounting Policies, Changes in Accounting Estimates and Revision Restated(Changes in Accounting Principal)(Adoption of the accounting standard concerning retirement benefit plan)
The company applied “Accounting standard concerning retirement benefit (ASBJ Statement No.26, May 17, 2013)” (hereinafterreferred to as the "Accounting standard of retirement benefit") and “Guideline on accounting standers concerning retirement
benefit (ASBJ Guideline No.25, May 17, 2013” (hereinafter referred to as the “Guideline of retirement benefit”) from the First
quarter of the current consolidated fiscal year. The company has reviewed the calculation of liabilities for retirement benefit andretirement benefit cost and changed service period basis as the attribution method to benefit formula from straight-line attribution.
Also, the company changed the determination of the discount rate to the method using the weighted average rate reflected theperiod and the cost which expect payment.
The adoption of the accounting standard of retirement benefit is based on the Accounting Standards for retirement benefit No.37.
The impact of this change was adjusted for retained earnings.
As a result, assets for retirement benefit were ¥115,476 thousand, liability for retirement benefit were ¥50,643 thousand andretained earnings were increased ¥41,752 thousand at the beginning from the First quarter of the current consolidated fiscal year.
The impact on Third quarter earnings as a result of this change was insignificant.
(4)Additional Information(The Transaction for the Board Incentive Plan Trust)
The Board Incentive Plan Trust was approved by the general shareholders meeting held on February 26, 2015. The main
objective of this scheme is to increase the board members’ motivation to make contributions to improve business performance andincrease enterprise value.
Trust transaction is accounted based on “Practical handling concerning the delivering of company outstanding shares to
employee through the trust” (ASBJ PITF No.30 of March 26, 2015).
(1) Summary of the Transaction
This system is a performance-based stock compensation which delivers treasury stock to directors by level of achievement
for sales and operating profit of each fiscal year. However, board member may receive the grant of the company shares at
the time of retirement.
(2) Remaining treasury stock in the trust
Remaining treasury stock in the trust is recorded in net assets as treasury stock by book value of the trust.
The book value of the treasury stock at the end of the Third quarter of current fiscal year is ¥168,000 thousand.
The number of the treasury stock at the end of the second quarter of current fiscal year is 175 thousand.

(Unaudited)3.

Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets
FY 2014(As of November 30, 2014)
Thousands of yen

FY 2015(As of August 31, 2015)
Thousands of yen

AssetsCurrent assets
Cash and deposits

7,862,616

8,096,665

Notes and accounts receivable

10,388,944

10,560,948

Inventory

4,557,407

5,057,675

Other current assets

1,445,161

1,285,866

Allowance for doubtful accounts
Total current assets△36,023
24,218,105△40,482
24,960,673

6,158,454
3,953,100
10,111,554

6,066,934
4,276,336
10,343,270

4,210,819

3,811,206

Other Intangible fixed assets

490,811

1,579,279

Total intangible fixed assets

4,701,630

5,390,486

5,262,788

5,720,019

238,158

354,678

Other fixed assets

1,190,897

1,066,432

Allowance for doubtful account△129,635△123,981

Total investments and other fixed assets

6,562,209

Fixed assets
Tangible fixed assets
Land
Other tangible fixed assets
Total tangible fixed assets
Intangible fixed assets
Goodwill

Investments and other fixed assets
Investment securities
Net defined benefit asset

Total fixed assets

21,375,394

7,017,148
22,750,905

Total assets

45,593,500

47,711,578

Notes and accounts payable

4,588,697

4,708,768

Short-term loans payable

4,960,000

4,960,000

Current portion of long-term debt

375,396375,396

Accrued tax payable

313,950

371,964

Reserve for bonuses

136,269

266,427

Reserve for director’s bonuses

48,10059,515

Other current liabilities

1,460,848

1,056,778

Total current liabilities

11,883,262

11,798,850

Long-term debt

911,873

630,326

Provision for director’s retirement benefit

129,608

55,506

Reserve for benefit allowance

4,626

10,804

Provision for environmental measures

23,65826,021

Liabilities
Current liabilities

Fixed liabilities

(Unaudited)
Net defined benefit liability

752,563

809,921

Other fixed liabilities

2,399,103

2,691,159

Total fixed liabilities

4,221,432

4,223,739

16,104,695

16,022,589

Capital3,532,492

3,532,492

Capital surplus

3,395,115

3,498,720

Retained earnings

21,364,202

21,801,114

Treasury stock△680,993△784,610

Total shareholders’ equity

27,610,816

28,047,716

Total liabilities
Net Assets
Shareholders' equity

Other comprehensive income
Valuation difference on available-for-sale securities

1,812,097

2,295,756

Deferred gains or losses on hedges△1,853△118

Difference in revaluation of land

△586,591△505,653

Foreign currency translation adjustment

545,742

1,756,797

Remeasurement of defined benefit plans

108,593

85,4901,877,988

3,641,272--

Total net assets

29,488,805

31,688,988

Total liabilities and net assets

45,593,500

47,711,578

Total other comprehensive income
Minority interests(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Quarterly Consolidated statements of income
The Third Quarter accounting period

Net sales
Cost of sales

FY 2014(December 1, 2013 throughAugust 31, 2014)
Thousands of yen
25,889,316
19,201,061

FY 2015(December 1, 2014 throughAugust 31, 2015)
Thousands of yen
32,353,384
24,068,955

Gross profit

6,688,255

8,284,429

Total selling, general and administrative expense

5,768,487

7,047,637

919,768

1,236,792

Interest received

17,894

19,978Dividends received

80,286

66,047

Rent on real estate

53,15757,529630

59,778Equity in earnings of affiliates

28,06324,372Other non-operating income

77,90980,238

Total non-operating income

257,942

307,944

Operating Income
Non-operating income

Foreign exchange gains

(Unaudited)
Non-operating expenses
Interest paid

8,743

17,000Cash discount on sales

75,852

68,354

Others non-operating expense

64,27861,978

Total non-operating expense

148,874

147,334

1,028,836

1,397,402

Gains on sales of fixed assets

275,232

236,762

Gains on sales of securities

174,365

76,953Gain on liquidation of subsidiaries and affiliates

79,894－

Total extra ordinary income

529,491

313,716

Ordinary Income
Extra ordinary income

Extra ordinary loss
Loss on disposal of fixed assets

24,148

9,411

Loss on sales of fixed assets

－

3,034

Loss on liquidation affiliates

48,778322,950

Total extra ordinary loss

72,924335,396

1,485,403

1,375,722

Corporate, inhabitant and business taxes

488,059

570,183

Adjustments to corporate and other taxes△2,928

8,339

Total income taxes

445,131

578,5221,040,271

797,199－－

Net income

1,040,271

797,199

Income before minority interests

1,040,271

797,199

70,314△1,2175483,659
1,734
76,556

Foreign currency translation adjustment－
134,223-

1,220,054

Remeasurements of defined benefit plans－△23,103203,320

1,758,902

1,243,591

2,556,101

1,243,591

2,556,101--

Net income before taxes and other adjustment

Income before minority interest
Minority interest

Other comprehensive income
Other gain(loss) on available-for-sale securities
Deferred gains or losses on hedges
Difference in revaluation of land

Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attribute to the parent
Comprehensive income attribute to the minority
shareholders

(Unaudited)(3) Notes regarding Quarterly Consolidated Financial Statements[Notes on assumption of going concern]
Not applicable.
[Notes on a Significant Change in Shareholders’ Equity]
Not applicable.
[Segment Information]
1. The Third quarter of FY 2014 (December 1, 2013 through August 31, 2014)
The information on net sales, income or loss, assets and other items by reportable segment

Japan

Net Sales
Sales to external customers
Inter segment sales andtransfer
Total

Reportable Segment
Asia
EU and US

Total(Thousands of yen)
Adjustment
Consolidate(Note 1)dStatement
Amount(Note 2)

20,057,067

4,045,634

1,786,614

25,889,316－

25.889.316

1,753,169
21,810,237

1,783,228
5,828,863

4,111
1,790,726

3,540,510
29,429,827△3,540,510△3,540,510－
25,889,316

Segment income
687,312260,651
161,608
1,109,572△189,804
919,768(Notes)1. Adjustment of △¥189,804 thousand includes △¥195,335 thousand -corporate expenses that are not distributed to eachreportable segment and other △¥5,531 thousand.
2. The amounts for income or losses in the reportable segments were subsequently adjusted with the amount of operating
income on the quarterly consolidated profit and loss statement.
2.

The Third Quarter of FY 2015 (December 1, 2014 through August 31, 2015)
The information on net sales, income or loss, assets and other items by reportable segment

Japan

Reportable Segment
Asia
EU and US

Total(Thousands of yen)
Adjustment
Consolidate(Note 1)dStatement
Amount(Note 2)Net Sales
Sales to external customers
20,792,334
6,325,769
5,235,280
32,353,384
32,353,384－
Inter segment sales andtransfer
1,903,416
1,718,384
71,7283,693,529－△3,693,529
Total
22,695,751
8,044,153
5,307,009
36,046,914△3,693,529
32,353,384
Segment income
834,005
323,023
385,554
1,542,583△305,791
1,236,792(Notes)1. Adjustment of △¥305,791 thousand includes △¥255,648 thousand-corporate expenses that are not distributed to eachreportable segment and other △¥50,142 thousand.
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.