Consolidated Financial Results
for the First Quarter of the Fiscal Year
Ended November 30, 2021 [Japanese GAAP]
April 13, 2021
Company name: MORITO CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number: 9837
URL: http://www.morito.co.jp/hd_en/
Representative: Takaki Ichitsubo, Representative Director, CEOContact: Kiyomi Akui, Director, Senior Executive Officer and Division Manager of Corporate Administrative
Division
Phone: +81-6-6252-3551
Scheduled date of filing quarterly securities report: April 14, 2021
Scheduled date of commencing dividend payments: Availability of supplementary briefing material on annual financial results: Available
Schedule of annual financial results briefing session: No(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ended November 30, 2021 (December
1, 2020 to February 28, 2021)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Million yen%

Million yen

Million yen%

1Q of FY 2021
10,629(4.9)
473
40.648558.6288
11,1710.2
336(9.2)
306(11.8)
169
1Q of FY 2020(Note) Comprehensive income: 1Q of the Fiscal year ended November 30, 2021: ¥271 million [- %]1Q of the Fiscal year ended November 30, 2020: ¥(100) million [- %]70.8(19.7)

Basic earnings
per share

Diluted earnings
per share

Yen

Yen

1Q of FY 2021
10.54
1Q of FY 2020
6.17(2) Consolidated Financial Position
Total assets
Million yen%

Million yen%

Net assets

Equity ratio

Million yen%

32,154
1Q of FY 2021
43,91932,015FY 202043,699(Reference) Equity: As of February 28, 2021: ¥32,098 million
As of November 30, 2020: ¥31,958 million

73.1
73.1

2. Dividends
Annual dividends
1st2nd3rdYear-endquarter-end quarter-end quarter-end

Total

Fiscal year ended
Yen
Yen
Yen
Yen
Yen
November 30, 2020
13.25
4.75 18.00
November 30, 2021
Fiscal year ending
November 30, 2021
9.00
9.00 18.00(Forecast)(Note) Revisions of dividend forecast to the latest announcement: None3. Consolidated Financial Results Forecast for the Fiscal Year Ending November 30, 2021 (December 1, 2020 toNovember 30, 2021)(% indicates changes from the previous corresponding period.)
Operating profit

Net sales
Million yen%

Million yen

Profit attributable Basic earnings perto owners of parentshare

Ordinary profit% Million yen% Million yen

Full year
43,000
5.6
1,300
51.8
1,300
40.1
(Note) Revisions of performance forecast to the latest announcement: None700%

Yen

48.9

25.57

* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in scope of consolidation): No(2) Adoption of special accounting treatment for preparing quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: No
2) Changes in accounting policies other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
1Q of the fiscal year ended November 30, 2021: 30,800,000 shares
November 30, 2020: 30,800,000 shares2) Total number of treasury shares at the end of the period:
1Q of the fiscal year ended November 30, 2021: 3,418,360 shares
November 30, 2020: 3,420,060 shares
3) Average number of shares during the period:
1Q of the fiscal year ended November 30, 2021: 27,380,790 shares
1Q of the fiscal year ended November 30, 2020: 27,379,940 shares* These quarterly consolidated financial results are outside the scope of audit by certified public accountants or auditfirms.
* Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements herein are based on information currently available
and certain assumptions judged to be reasonable. Actual results may differ significantly from these forecasts due toa wide range of factors.
As for suppositions that form the assumptions for the forecast of financial results and cautionary notes concerning
the use thereof, please refer to “1. Overview of Business Results, etc. (2) Forecast of Consolidated BusinessResults and other Forward-looking Information ” on page 3.
The Company and some of the Morito Group companies have introduced the “Japanese version of the employee
stock ownership plan (J-ESOP)” and the “officer remuneration board incentive plan (BIP) trust.” Consequently,
the shares of the Company held by Custody Bank of Japan, Ltd. (trust account E) and The Master Trust Bank ofJapan, Ltd. (officer remuneration BIP trust account), respectively, are included in treasury shares.

Table of Contents
1. Qualitative Information for the Period under Review ...................................................................................... 2(1) Overview of Business Results for the Period under Review ........................................................................ 2(2) Forecast of Consolidated Business Results and other Forward-looking Information .................................. 3
2. Quarterly Consolidated Financial Statements and Primary Notes ................................................................... 4(1) Quarterly Consolidated Balance Sheets ....................................................................................................... 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income ............................................... 6
Quarterly Consolidated Statements of Income .......................................................................................... 6
Quarterly Consolidated Statements of Comprehensive Income ................................................................ 7(3) Notes to the Quarterly Consolidated Financial Statements .......................................................................... 8(Notes on Going Concern Assumption) ....................................................................................................... 8(Notes on Significant Changes in the amount of Shareholders' Equity ) ..................................................... 8(Additional Information) .............................................................................................................................. 8(Segment Information, etc.) ......................................................................................................................... 91

1. Overview of Business Results, etc.
(1) Overview of Business Results for the Period under Review
In the first quarter (from December 1, 2020 to February 28, 2021) of the fiscal year ended November 30,2021, the business environment has remained unpredictable due to COVID-19 global pandemic, even though insome regions, such as the U.S. and China it tended to recover by success of economic measures.
Amid such circumstances, the Morito Group (the “Group”), which engages in the handling of apparelmaterials and consumer products, faced harsh business conditions due to adjusting inventories in department
stores and mass retailers around the world caused by stagnation of demand by COVID-19. In spite of theseconditions, the Group focused on the development and sales of value-added products that take safety, security,health and environmental-friendliness into consideration. Through these businesses, the Group committed toachieving the Sustainable Development Goals (SDGs) and strengthening our profitability.
As a result, for the fiscal year under review, net sales decreased by 4.9% year on year to ¥10,629 million.
Operating profit increased by 40.6% to ¥473 million, ordinary profit increased by 58.6% to ¥485 million, andprofit attributable to owners of parent increased by 70.8% to ¥288 million.
Exchange rates used for the conversion of revenue and expenses of the Group’s overseas subsidiaries during
the preparation of consolidated financial statements for the first quarter of fiscal year under review are asfollows.
1Q
USD

104.51 （108.76）

EUR

124.58 （120.32）

CNY

15.81（15.44）

HKD

13.48（13.90）

TWD

3.67（3.57）

VND

0.0045（0.0047）

THB

3.42（3.59）

MXN

5.08（5.65）(Note)The exchange rate of the same period in the previous fiscal year is stated in parentheses.

Business results by segment are as follows.
[Japan]In the apparel division, sales of fitness clothes increased by demand for stay home, but sales of accessories
for casual wear, working wear and thick-fabric menswear decreased.
In the consumer product division, sales of products for dollar stores, accessories for school bag and rental,
sales and cleaning business of kitchen equipment increased, but sales of products related to snowboards andsafety-related accessories for construction site decreased.
As a result, net sales decreased by 7.0% year on year to ¥7,347 million.
[Asia]In the apparel division, sales of accessories to Japanese apparel manufacturers in Thailand decreased, but
sales of accessories to Europe and the U.S. apparel manufacturers in Hong Kong increased.
In the consumer product division, sales of products for video equipment in Thailand decreased, but sales of2

automobile interior components to Japanese automobile manufacturers increased in China.
As a result, net sales increased by 2.8% year on year to ¥2,083 million.
[Europe and the U.S.]
In the apparel division, sales of accessories to apparel manufacturers in the U.S. increased, but sales ofaccessories to apparel manufacturers in Europe decreased.
In the consumer product division, sales of automobile interior components to Japanese automobile
manufacturers in Europe and the U.S. decreased.
As a result, net sales decreased by 3.5% year on year to ¥1,198 million.

(2) Forecast of Consolidated Business Results and other Forward-looking Information
The consolidated financial forecast for the fiscal year ending November 30, 2021 remains unchanged from thefigures announced in the “Consolidated Financial Results for the Fiscal Year Ended November 30, 2020” (January 14,2021). The impact of COVID-19 is expected, and will be disclosed as soon as the impact on business performance
becomes clear.

32. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Thousand yen)
FY 2020(As of November 30, 2020)
Thousands of yen

FY 2021(As of February 28, 2021)
Thousands of yen

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Inventory
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Land
Other tangible fixed assets
Total tangible fixed assetsIntangible fixed assets
Goodwill
Other Intangible fixed assets
Total intangible fixed assets
Investments and other fixed assets
Investment securities
Net defined benefit asset
Other fixed assets
Allowance for doubtful accountTotal 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 bonds
Current portion of long-term debt
Accrued tax payable
Reserve for bonuses
Reserve for director’s bonuses
Other current liabilities
Total current liabilities
Fixed liabilities
Long-term debt
Provision for retirement benefit by stock
Provision for director’s retirement benefit
Provision for director's retirement benefit by stock
Provision for environmental measures
Net defined benefit liability
Other fixed liabilities
Total fixed liabilities
Total liabilities

4

10,125,070
9,957,014
4,721,852
733,414(40,942)
25,496,410

10,401,341
10,092,671
4,855,379
586,947(36,182)
25,900,156

4,076,183
5,489,802
9,565,985

4,074,924
5,343,120
9,418,044

2,561,362
1,089,779
3,651,142

2,460,828
1,052,122
3,512,950

3,940,908
221,671889,879(67,945)
4,984,514
18,201,643
1,400
43,699,454

4,072,491
221,399
861,869(67,929)
5,087,831
18,018,826
350
43,919,333

4,255,918
50,000200,000
530,000
98,125
184,683
50,841
1,557,809
6,927,378

4,641,805
50,000200,000
553,334
170,280
166,124
21,762
1,347,208
7,150,515

2,097,922
37,45362,09975,432
18,974918,297
1,546,555
4,756,735
11,684,114

1,965,422
36,11064,05876,02118,563
913,493
1,540,410
4,614,079
11,764,595

(Thousand yen)
FY 2020(As of November 30, 2020)
Thousands of yen
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
Difference in revaluation of land
Foreign currency translation adjustment
Remeasurement of defined benefit plans
Total other comprehensive income
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets

5FY 2021(As of February 28, 2021)
Thousands of yen

3,532,492
3,507,603
25,703,378(2,227,056)
30,516,416

3,532,492
3,507,603
25,859,364(2,226,392)
30,673,067

945,536
118
451,115
112,743(67,659)
1,441,855
57,067－32,015,339
43,699,454

1,034,229
10451,115
1,084(61,417)
1,425,022
56,647－32,154,737
43,919,333

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Thousand yen)

Net sales
Cost of sales
Gross profitTotal selling, general and administrative expense
Operating Income
Non-operating income
Interest received
Dividends received
Rent on real estate
Equity in earnings of affiliates
Employment adjustment subsidy
Other non-operating income
Total non-operating income
Non-operating expenses
Interest paid
Cash discount on sales
Foreign Exchange Loss
Others non-operating expense
Total non-operating expense
Ordinary Income
Extra ordinary income
Gains on sales of fixed assets
Gain on reversal of subscription rights to shares
Total extra ordinary income
Extra ordinary loss
Loss on sales of fixed assets
Loss on disposal of fixed assets
Loss on sales of golf club memberships
Loss on valuation of golf club membership
Total extra ordinary loss
Net income before taxes and other adjustment
Corporate, inhabitant and business taxes
Adjustments to corporate and other taxes
Total income taxes
Net income
Profit(Loss) attributable to non-controlling interests
Profit(Loss) attributable to owners of parent

6

FY 2020(December 1, 2019 throughFebruary 29, 2020)
Thousands of yen
11,171,357
8,236,318
2,935,039
2,598,468
336,571

FY 2021(December 1, 2020 throughFebruary 28, 2021)
Thousands of yen
10,629,541
7,834,483
2,795,057
2,321,769
473,288

4,822
10,672
16,52011,556－
4,036
47,6092,766
9,300
16,087
4,158
24,9558,424
65,692

3,688
19,74327,06427,472
77,969306,2112,601
14,84012,36023,42753,230485,750

408
105
513

－
420
420

－
1,994
1,080
5,374
8,448
298,276
154,369(25,132)
129,236
169,039－
169,039

29
171－
－
200
485,969
189,894
7,412
197,306
288,663－
288,663

Quarterly Consolidated Statements of Comprehensive Income(Thousand yen)

Net Income
Other comprehensive income
Unrealized gain(loss) on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Adjustments to retirement benefit
Share of other comprehensive income of associates accounted for using equity method

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

7

FY 2020(December 1, 2019 throughFebruary 29, 2020)
Thousands of yen
169,039

FY 2021(December 1, 2020 throughFebruary 28, 2021)
Thousands of yen
288,663(475,027)(1,338)204,096
2,372
1(269,894)(100,854)

88,693(110)(111,659)
6,241
2(16,832)
271,830(100,854)－271,830－

(3) Notes to the Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.
(Notes on Significant Changes in the amount of Shareholders' Equity)
Not applicable.
(Additional Information)(Impact of COVID-19 pandemic on accounting estimates)
In the first quarter (from December 1, 2020 to February 28, 2021) of the fiscal year ended November 30th,2021 (From December 1, 2020 to November 30, 2021), the business environment has remained unpredictable
due to COVID-19 global pandemic, even though in some regions, such as the U.S. and China it tended torecover by success of economic measures.
Amid such circumstances, the assumptions used in the accounting estimates for the COVID-19 in Japan,
Asia, Europe and the U.S. have not changed from the additional information in the financial statements for theprevious fiscal year.

8(Segment Information, etc.)[Segment information]
I.

For the First Quarter of the fiscal year ended November 30, 2020
Information on amounts of net sales, profit (loss) by reportable segment(Thousand yen)

TotalAdjustment(Notes 1)

Amountrecorded in
Consolidated
FinancialStatements(Note 2)

11,171,357
1,057,487
12,228,845
408,417－(1,057,487)(1,057,487)(71,846)

11,171,357－
11,171,357
336,571

Reportable Segment

Net sales
Net sales to external customers
Inter-segment sales or transfers
TotalSegment profit

Japan

Asia

7,902,692
362,167
8,264,860
348,605

2,026,554
682,398
2,708,953
114,823

Europe andthe U.S.

1,242,110
12,921
1,255,031(55,010)(Notes) 1. The adjustment of ¥(71,846) thousand to segment profit includes corporate expenses of ¥(50,788) thousand notallocated to the reportable segments, and other in the amount of ¥(21,057) thousand.
2. The amount of segment profit has been adjusted with operating profit in the Quarterly Consolidated Statements ofIncome.

II.

For the First Quarter of the fiscal year ended November 30, 2021
Information on amounts of net sales, profit (loss) by reportable segment(Thousand yen)

Adjustment(Notes 1)

Amountrecorded in
Consolidated
FinancialStatements(Note 2)－(943,522)(943,522)
8,322

10,629,541－
10,629,541
473,288

Reportable Segment

Net sales
Net sales to external customers
Inter-segment sales or transfers
Total
Segment profit

Japan

Asia

7,347,816
403,514
7,751,330
384,8932,083,234
530,745
2,613,979
57,180Europe andthe U.S.

Total

1,198,490
9,263
1,207,754
22,892

10,629,541
943,522
11,573,064
464,965(Notes) 1. The adjustment of ¥8,322 thousand to segment profit includes corporate expenses of ¥(49,034) thousand notallocated to the reportable segments, and other in the amount of ¥57,356 thousand.
2. The amount of segment profit has been adjusted with operating profit in the Quarterly Consolidated Statements ofIncome.

9