(Unaudited)

July 11, 2016
MORITO CO., LTD.
Financial Statement (Unaudited)
For the Second Quarter of the Fiscal Year ended November 30, 2016
(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:

July 14, 2016
August 10, 2016
Yes
Yes

(Amounts rounded down)
1. Consolidated Financial Results for the Second Quarter of Fiscal Year 2016(December 1, 2015 through May 31,
2016)(1) Consolidated Financial Results(Percentages indicate year-on-year changes)
Net sales
Millions of%yen
20,332△5.1

Operating income
Millions of
%
yen
706
△19.2

Ordinary income
Millions of
%
yen
580
△43.5

2Q of
FY 2016
2Q of
21,418
24.6
874
30.5
1,026
FY 2015(Note) Comprehensive income: △641million yen (△130.0%) (2Q of FY 2016)
2015)

2Q of
FY 2016
2Q of
FY 2015

Net income
Per share
Yen
12.47

Fully diluted net
Income per share
Yen
－

17.83

－

(2) Consolidated Financial Position
Total assets
Net assets
Millions of yen
Millions of yen
2Q of
41,85929,989FY 2016
FY 2015
47,331
31,113(Reference) Equity capital: 29,986million yen (2Q of FY 2016)
2. Dividends

FY 2015
FY 2016
FY 2016(Forecast)First
quarterend
Yen－－

Dividends per share
SecondThird
Fiscalquarter- quarteryearend
end
end
Yen
Yen
Yen
7.00
7.50
－
8.00
8.00
－

Total
(Annual)Yen
14.5016.00

49.4

Net income
Millions of
%
yen
355
△31.1
516

△14.0

2,141million yen (134.6%) (2Q of FY

Equity ratio
%
71.6
65.7
31,113 million yen (FY 2015)

(Unaudited)(Note) Revision of consolidated earnings forecast to the latest announcement: None
3. Consolidated Forecast for FY 2016 (December 1, 2015 through November 30, 2016)(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
41,000
1,600
1,400
△5.3
△7.0
△25.2
Net income
Net income per share
Millions of yen%
Yen
Full year
1,000
35.11
△30.2
(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 May 31, 2016)
30,800,000 shares (as of November 30, 2015)(ii) Number of shares of treasury stock at end of period:
2,349,000 shares(as of May 31, 2015)
2,023,820 shares(as of November 30, 2015)(iii) Average outstanding number of shares during the period:
288,520,205 shares(the Second quarter of FY 2016)
28,973,484 shares(the Second quarter of FY 2015)*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 is 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 inmind when using 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 by Trust 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
3. Quarterly Consolidated Financial Statements ..........................................................................................................6(1)
Quarterly Consolidated Balance Sheets ...........................................................................................................6(2)
Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ...............8
Quarterly Consolidated statements of income .............................................................................................................8(3)
Consolidated of Cash Flows ...........................................................................................................................9(4)
Notes regarding Quarterly Consolidated Financial Statements......................................................................... 11[Notes on assumption of going concern] ...................................................................................................................... 11[Notes on a Significant Change in Shareholders’ Equity] ............................................................................................... 11[Segment Information]................................................................................................................................................ 11

(Unaudited)

1. Qualitative Information for the Period under Review(1) Business Performance
In the Second quarterly (From December 1, 2015 to May 31, 2016) of the fiscal year ended November 30, 2016, theJapanese economy has shown signs of modest recovery by monetary policy of government. However, the uncertain
economy situation
maintains because of stagnation of personal consumption due to increase of consumption tax, the concern for the world
economy situation and the slowdown in Chinese economy which made yen appreciation and stock market down.
In the global economy, the economic recovery of the U.S. economy is maintaining firm, but it is still uncertain becauseof concern for European’s debt problem, political situation, and slowdown in Chinese economy.
In such a situation, our group is moving forward a growth strategy by the development of high valued Japan made items,
expansion of a global sales channel under 7th mid-term management plan, and will promote the realization of value
creation which the era seeks, expand our business in not only existing market such ASEAN, china, western, but also in
untapped market to contribute our business.
As a result, in the current quarterly performance reach net sales ¥20,332million (decreased by 5.1% from a year earlier),
operating income ¥706 million (decreased by 19.2% from a year earlier), ordinary income ¥580 million (decreased by
43.5% from a year earlier), net income ¥355 million (decreased by 31.1% from a year earlier).
The exchange rate used for the consolidated financial statement of the current quarter end as below:¥112.69 to the U.S. dollar, ¥127.57 to the euro, ¥17.39 to the Chinese yuan, ¥14.53 to the Hong Kong dollar,¥3.50 to the Taiwan dollar, ¥0.0050 to the Vietnamese dong, ¥3.20 to the Thai baht.
The exchange rate used for the consolidated financial statement of the year earlier quarter end as below:¥120.27 to the U.S. dollar, ¥130.41 to the euro, ¥19.37 to the Chinese yuan, ¥15.51 to the Hong Kong dollar,¥3.85 to the Taiwan dollar, ¥0.0056 to the Vietnamese dong, ¥3.69 to the Thai baht.

Segment information as below[Japan]As for the apparel division, sales of the accessories for domestic mass retailer and sports and outdoor apparel
manufacturer in Japan are increased.
In the consumer product division, sales of accessories for camera, health-related items, magi tape®, automobiles, andinsole are decreased.
As a result, net sales were ¥13,758 million (decreased by 1.9% from a year earlier).
[Asia]
As for the apparel division, sales of the accessories for EU and U.S. infant’s wear in H.K., for Japanese apparel
manufacture in Shanghai, China are decreased.
In the consumer product division, sales of the automobile interior component for Japanese auto makers in Thailand isincreased, but sales of accessories for camera in Thailand, sales of the automobile interior component for Japanese automakers in Shanghai is decreased.
As a result, net sales were ¥3,617 million (increased by 10.4% from a year earlier).
[Europe and the U.S.]
As for the apparel division, sales of the accessories for medical industry in U.S. is increased, but sales of accessories for
U.S. domestic apparel market.
In the consumer product division, sales of automobile interior article for Japanese automobile manufacture in EU. Salesof accessories for camera in EU is decreased, neither.
As a result, net sales were ¥2,956 million (decreased by 12.0% from a year earlier).

(2) Forecast of Consolidated Business Results and Other Forward-looking Information
Currently, there has been no change in the consolidated forecast of FY2016.
4

(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 Policies
Standards such as the Accounting Standard for Business Combinations (ASBJ Statement No.21 of September 13, 2013), the
Accounting Standard for Consolidated Financial Statements (ASBJ Statement No. 22 of September 13, 2013), and the
Accounting Standard for Business Divestitures (ASBJ Statement No.7 of September 13, 2013) have been applied from thefirst quarter of the fiscal year under review. The purpose for applying these standards was to change the method forrecording the difference from changes in the Company’s equity in its subsidiaries that remain controlled by the Company ascapital surplus and as an expense in the consolidated fiscal year in which expenses related to acquisition are incurred. For
business combinations implemented after the beginning of the first quarter of the fiscal year under review, the method will
be changed to one that reflects the revision of distributed amounts of acquisition costs by determining provisional
accounting treatment in the quarterly consolidated financial statements for the quarterly consolidated accounting period towhich the date of business combination belongs. In addition, the Company has changed the presentation of quarterly net
profit and other items and the presentation of minority interests to non-controlling interests. To reflect this change, thequarterly consolidated financial statements and consolidated financial statements for the May 31, 2015 and fiscal year ended
November 30, 2015 have been replaced.
Under these revised accounting standard, company changed some tiles related consolidate cash flow.
Cash flow for related expenses of acquisition or disposal of consolidated subsidiary, expenses which happened byacquisition or disposal of non-consolidated subsidiary are listed in “cash flows from operating activities”.
The application of the Accounting Standard for Business Combinations and the other standards follows the transitional
treatment specified in Article 58-2 (4) of the Accounting Standard for Business Combinations, Article 44-5 (4) of the
Accounting Standard for Consolidated Financial Statement, and Article 57-4 (4) of the Accounting Standard for Business
Divestiture. The application of these standards has been under way since the beginning of the first quarter of the fiscal year
under review, and will continue to be applied going forward.

5

(Unaudited)

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets
FY 2015(As of November 30, 2015)
Thousands of yen
AssetsCurrent assets
Cash equivalents
Notes and accounts receivable
Inventory
Other current assets
Allowance for doubtful accounts
Total current assets

FY 2016(As of May 31, 2016)
Thousands of yen

10,010,892
10,755,928
4,403,602
1,035,105

9,229,424
10,211,221
4,432,810
845,826△38,959△40,432

26,166,569

24,678,850

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

5,926,237
4,077,419
10,003,656

3,374,135
3,370,485
6,744,621

Intangible fixed assets
Goodwill
Other Intangible fixed assets

3,687,790
1,549,867

3,390,474
1,408,792

Total intangible fixed assets

5,237,657

4,799,267

Investments and other fixed assets
Investment securities
Net defined benefit asset
Other fixed assets
Allowance for doubtful account4,634,984
400,076
968,566

4,244,185
400,1811,045,305△80,393△72,805

5,923,234

5,616,867

21,164,548

17,160,755－

20,30647,331,118

41,859,912

4,502,734
4,960,000－
375,396616,237
164,592
72,511
1,607,517

4,417,304
260,000
400,000
375,396383,200
103,919
64,627
1,019,625

12,298,989

7,024,073－
536,477

1,600,000
348,779

Total investments and other fixed assets
Total fixed assets
Deferred assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable
Short-term loans payable
Current portion of bondCurrent portion of long-term debt
Income taxes payable
Allowance for bonuses
Allowance for director’s bonuses
Other current liabilities
Total current liabilities
Fixed liabilities
Bond
Long-term debt
6

(Unaudited)

Allowance for employee’s retirement stock benefit
Allowance for director’s retirement benefit
Allowance for director’s retirement stock benefit
Allowance for environmental measures

9,804
54,75820,64023,813

17,66557,50826,323
20,338Net defined benefit liability
Other fixed liabilities

829,319
2,443,694

837,950
1,937,661

Total fixed liabilities

3,918,507

4,846,226

16,217,496

11,870,300

3,532,492
3,498,724
22,436,316

3,532,492
3,498,724
23,335,203△956,696△1,232,250

28,510,835

29,1334,169

1,625,548

1,347,398△1,069△514,664
1,403,231
89,739△908△1,248,176
679,215
74,4672,602,789

851,995－

3,447

Total net assets－
31,113,622－
29,989,612

Total liabilities and net assets

47,331,118

41,859,912

Total liabilities
Net Assets
Shareholders' equity
CapitalCapital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Stock acquisition rightNon-controlling interests

7

(Unaudited)(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 2015(December 1, 2014 throughMay 31, 2015)
Thousands of yen
21,418,115
15,945,011

FY 2016(December 1, 2015 throughMay 31, 2016)
Thousands of yen
20,332,540
15,067,388

Gross profit

5,473,103

5,265,151

Total selling, general and administrative expense

4,598,955

4,558,884

Operating Income

874,148706,266

Non-operating income
Interest received
Dividends received
Rent on real estate
Foreign exchange gains
Equity in earnings of affiliates
Other non-operating income

11,71644,18438,49966,427
19,681
67,464

11,93038,79038,545

Total non-operating income

247,972

126,693

10,74043,584

9,468
43,753150,034

Others non-operating expense－
40,878

Total non-operating expense

95,203

252,666

1,026,918

580,293

Extra ordinary income
Gains on sales of fixed assets
Gains on sales of securities

158,629
76,953

7,521
21,712

Total extra ordinary income

235,583

29,234Extra ordinary loss
Loss on disposal of fixed assets
Loss on sales of fixed assets
Loss on liquidation affiliates

1,140
8,613
301,721

7,138
1,566

Total extra ordinary loss

311,475－
8,704

Net income before taxes and other adjustment

951,025

600,823

Corporate, inhabitant and business taxes
Adjustments to corporate and other taxes

494,668△60,204

404,839△159,686

Total income taxes

434,463245,152

Net income

516,562355,671

Other comprehensive income
Other gain(loss) on available-for-sale securities
Deferred gains or losses on hedges

516,562980△278,150
160

Non-operating expenses
Interest paid
Cash discount on sales
Exchange Loss

Ordinary Income

8－26,828
10,59849,409(Unaudited)

Revaluation on Land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attribute to owners ofparentComprehensive
incomeattributetothenon-controlling interests

76,556

20,050995,696△13,547
1,624,601
2,141,163△724,016△15,272△997,227△641,556

2,141,163△641,556－－(3) Consolidated of Cash FlowsFY 2015(December 1, 2014 throughMay 31, 2015)
Thousands of yen

FY 2016(December 1, 2015 throughMay 31, 2016)
Thousands of yen

951,025
346,515
118,803△24,160△116,336
48,624△76,953

600,823
334,236
113,774△56,470
△104
8,630
2,750

8,613

7,860

301,721

5,683

1,348
△55,900
10,740△19,681△157,489△76,953
8,613
301,721
26,462
16,988△339,745
63,562△18,914△50,7219,468△26,828△383△21,7121,566－
281,244△189,754
59,99259,288Subtotal

1,034,718

1,120,430

Proceed from interest and dividends income
Payment of interest
Payment of corporate tax

56,047△11,288△280,392

51,251△14,803△601,610

Net cash(used in)provided by operating activities

799,085555,268

Cash flows from operating activities
Income (loss) before income taxes
Depreciation of amortization
Depreciation of goodwill
Change in provision for bonus
Changes in employee’s retirement benefit asset
Changes in employee’s retirement benefit liability
Changes in director’s retirement benefit liability
Changes in provision for employee’s retirement stock
benefit
Changes in provision for director’s retirement stock
benefit
Change in allowance for doubtful accounts
Interest income and dividends income
Interest paid
Equity in net income of affiliates
Gains from sale of fixed assets
Gains from sale of investments
Loss on sales of fixed assets
Loss on liquidation affiliates
Change in notes and accounts
Change in inventory
Change in account payable
Others9

(Unaudited)

Cash flows from investing activities
Decrease in time deposit
Increase in time deposit
Purchase of investment securities
Increase of sale for investment securities
Purchase of stocks subsidiary
Purchase of tangible fixed assets
Proceeds from sale for tangible fixed assets
Purchase of futile current assets
Proceeds from loans receivable
Decrease of loan

△24,196－△18,241
194,847△261,500△325,465
212,665△6,92330,026△266,893
150,201△18,367
31,312－－△158,665
2,760,336△14,206
43,469△34,780△14,734△3,325△213,521

2,489,082

10,000△76,215△187,698－
168,009△168,000△190,875△4,700,000△88,311△187,698
1,978,993
1,412△276,965△220,073△444,779△3,492,643

Effects of exchange rate on cash and cash equivalents

135,477△338,660

Net increase (decrease) in cash and cash equivalents

276,261△786,952

6,847,667

8,858,896－△30,508

7,123,928

8,041,435

OthersNet cash provided by (used in) investing activities
Cash flows from financing activities
Changes in short-term debt
Repayments of lease obligations
Repayment of long-term loans
Proceeds of debenture
Proceeds from sale from treasury stock
Payments to acquire treasury stock
Payments of dividends
Net cash used in financing activities

Cash and cash equivalents at beginning of year
Decrease in cash and cash equivalents resulting fromexclusion of subsidiaries from consolidation
Cash and cash equivalents at end of quarter

10

(Unaudited)(4) 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 Second quarter of FY 2015 (December 1, 2014 through May 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
14,021,555
4,036,980
3,359,579 21,418,115－ 21,418,115
Inter segment sales and1,261,527
1,180,898
19,1062,461,532 △2,461,532－
transfer
Total
15,283,083
5,217,878
3,378,685 23,879,647 △2,461,532 21,418,115
Segment income
689,422
196,204
180,522
1,066,149
874,148△192,000(Notes)1. Adjustment of △¥192,000 thousand includes △¥166,126 thousand -corporate expenses that are not distributed toeach reportable segment and other △¥25,873 thousand.
2. The amounts for income or losses in the reportable segments were subsequently adjusted with the amount ofoperating income on the quarterly consolidated profit and loss statement.
2. The Second Quarter of FY 2016 (December 1, 2015 through May 31, 2016)
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
13,758,499
3,617,989
2,956,051 20,332,540－ 20,332,540
Inter segment sales and
1,208,528
958,655
24,631
2,191,815 △2,191,815－
transfer
Total
14,967,027
4,576,644
2,980,683 22,524,356 △2,191,815 20,332,540
Segment income
534,762
168,699
144,065
847,527
706,266△141,260(Notes)1. Adjustment of △¥141,260 thousand includes △¥160,500 thousand-corporate expenses that are not distributed toeach reportable segment and other △¥19,239 thousand.
2. The amounts for income or losses in the reportable segments were subsequently adjusted with the amount ofoperating income on the consolidated profit and loss statement.

11