Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any
discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results for the Nine Months of the Fiscal Year Ending
November 30, 2023 [Japanese GAAP]
October 13, 2023
Company name: MORITO CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number:
9837
URL: https://www.morito.co.jp
Representative: Takaki Ichitsubo, Representative Director, CEO
Kiyomi Akui, Director, Senior Executive Officer, Division Manager ofContact:
Corporate Administrative Division and Division Manager of Business (Phone) +81-6-6252-3551
Management Division
Scheduled date of filing
Scheduled date of commencing
October 16, 2023
dividend payments:
quarterly securities report:
Availability of supplementary briefing material on quarterly financial results: Available
Schedule of quarterly financial results briefing session: None scheduled(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Nine Months of the Fiscal Year Ending November 30, 2023
(December 1, 2022 to August 31, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen

Nine months ended
August 31, 2023
Nine months ended
August 31, 2022

% Millions of yen% Millions of yen% Millions of yen%

35,551

1.1

1,750

10.3

1,993

14.0

1,729

39.2

35,172

10.6

1,586

43.7

1,747

38.7

1,242

64.1

Nine months
Nine months(Note) Comprehensive income: ended August 31, 2,537million yen[ (16.4)%] ended August 31, 3,034million yen[ 85.9%]
2023
2022
Basic earnings per
share
Nine months ended
August 31, 2023
Nine months ended
August 31, 2022

Diluted earnings per
share

Yen

Yen

64.70

64.55

46.08

-

(2) Consolidated Financial Position
Total assets

Equity ratio

Millions of yen%

50,27937,89475.3

50,271

36,68472.9

FY2022

36,628 million yen

Nine months ended
August 31, 2023
FY2022(Reference) Equity:

Net assets

Millions of yen

Nine months ended
August 31, 2023

37,865 million yen

2. Dividends
1st quarterend

2nd quarterend

Yen

Yen

Annual dividends
3rd quarterYear-end
end

FY202213.50
FY202327.00
FY2023(Forecast)(Note) Revision to the latest announcement of dividend forecast

Total

Yen

Yen

Yen

-

18.50

32.00

27.00

54.00

:

None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending November 30, 2023
(December 1, 2022 to November 30, 2023)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Millions of yen% Millions of yen% Millions of yen% Millions of yen

Full year
50,0003.1
2,400 13.4
2,700 15.3
(Note) Revision to the latest announcement of performance forecast
:
Yes

― 1 ―

2,200

%

Yen

31.4

82.29

Notes:(1) Changes in significant subsidiaries during the period under review (changes in
specified subsidiaries resulting in changes in the scope of consolidation)(2) Adoption of special accounting treatment for preparing quarterly consolidated
financial statements

:

No

:

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:

Yes2) Changes in accounting policies other than 1) above:

No3) 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
August 31, 2023:of the period (including treasury shares):2) Total number of treasury shares at theAugust 31, 2023:
end of the period:3) Average number of shares during the
For the nine months ofperiod:the fiscal year ending
November 30, 2023:

30,000,000

November 30, 2022:

30,000,000

3,323,100

November 30, 2022:

3,295,500

For the nine months of
26,736,150 the fiscal year ended
November 30, 2022:

26,960,430*

These quarterly consolidated financial results are outside the scope of audit by certified public accountants or audit
firms.

*

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 andcertain assumptions judged to be reasonable. Actual results may differ significantly from these forecasts due to a wide
range of factors.
As for suppositions that form the assumptions for the forecast of financial results and cautionary notes concerning theuse thereof, please refer to “(2) Forecast of Consolidated Business Results and other Forward-looking Information”
in “1. Qualitative Information for the Period under Review” on page 5.
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.

― 2 ―Table of Contents
1. Qualitative Information for the Period under Review..................................................................................

4(1)

Overview of Business Results for the Period under Review..............................................................

4(2)

Forecast of Consolidated Business Results and other Forward-looking Information........................

5

2. Quarterly Consolidated Financial Statements and Primary Notes.............................................................

6(1)

Quarterly Consolidated Balance Sheets............................................................................................

6(2)

Quarterly Consolidated Statements of Income and Comprehensive Income....................................

8

Quarterly Consolidated Statements of Income.....................................................................................

8

Quarterly Consolidated Statements of Comprehensive Income..........................................................

9Notes to the Quarterly Consolidated Financial Statements...............................................................

10(Notes on Going Concern Assumption)................................................................................................

10(Notes on Significant Changes in the Amount of Shareholders’Equity).............................................

10(Changes in Accounting Policies).........................................................................................................

10(Segment Information, Etc.)..................................................................................................................

11

(3)

― 3 ―

1. Qualitative Information for the Period under Review(1) Overview of Business Results for the Period under Review
For the nine months of the fiscal year ending November 30, 2023 (December 1, 2022 to August 31, 2023) saw
economic activity steadily return to normal as the impact of the COVID-19 pandemic eased. However, the outlook forthe future remains uncertain due to a sharp rise in raw material prices caused by the situation in Ukraine and otherfactors, accelerating global inflation and the possibility of an economic slowdown overseas, particularly in Europe
and the U.S., as well as exchange rate fluctuations.
Working against this backdrop, the Morito Group (the “Group”), which is mainly engaged in the apparel, product,
and transportation businesses, faced an uphill battle due to soaring raw material prices for its mainstay products andother factors, which all kept profits low, as well as stagnant demand caused by slowing consumption in Europe, theU.S., and Asia. On the other hand, the Group enjoyed favorable sales of accessories and products with superior
functionality, including athletic shoes- and medical device-related products, which are unaffected by trends, while theperformance of its kitchen appliance and related service business remained upbeat. Under its “Rideeco®”
initiative aimed at realizing a sustainable society, the Group moved forward with the development and sales ofenvironmentally friendly products, using discarded fishing nets and fabric scraps from garment factories, with a focus
on winning new business contracts. The Group also enjoyed higher operating profit thanks to increased sales ofhigh-value-added products and the enhanced efficiency of logistics operations.
As a result, for the nine months of the fiscal year under review, net sales increased 1.1% year on year to 35,551
million yen. Operating profit was up 10.3% to 1,750 million yen, ordinary profit grew 14.0% to 1,993 million yen, andprofit attributable to owners of the parent increased 39.2% to 1,729 million yen.

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 nine months of the fiscal year under review are as follows.
1Q

2Q

3Q

USD

141.39(113.71)132.43(116.34)

137.49(129.73)EUR

144.26(130.04)

142.17(130.40)

149.58(138.25)

CNY

19.85

(17.78)19.35(18.31)

19.56(19.60)

HKD

18.07

(14.60)16.89(14.90)17.54(16.53)TWD

4.51(4.09)

4.36(4.16)

4.48(4.41)

VND

0.0058(0.0050)

0.0056(0.0051)

0.0059(0.0056)

THB

3.89

(3.41)

3.91(3.52)

3.99(3.77)

MXN

7.19(5.48)

7.11(5.67)

7.79(6.48)(Note) The exchange rate of the same period in the previous fiscal year is stated in parentheses.

― 4 ―Business results by segment are as follows.

Japan
The Apparel Division saw increases in sales of accessories for workwear and athletic shoes as well as for bags
although sales of medical wear accessories for the European and the U.S. markets declined.
The Product Division enjoyed increases in sales of medical device-related products and products for one-coin shops(like 100-yen stores) as well as higher revenues for the kitchen appliance rental, sales, and cleaning business,despite declined sales of surfboard-related products.
In the Transportation Division, sales of automotive interior components to Japanese automotive manufacturers
increased.
As a result, net sales grew 4.5% year on year to total 25,229 million yen, and segment profit rose 31.1% year on year
to reach 1,531 million yen.

Asia
The Apparel Division enjoyed growing sales of baby wear accessories in China and Hong Kong as well as athleticshoe accessories and workwear-related products in Vietnam although sales of casual wear and workwear
accessories for the European and the U.S. markets declined in China and Hong Kong.
In the Transportation Division, sales of automotive interior components to Japanese automotive manufacturers
decreased in China due to the semiconductor shortage and China’s zero-COVID policy in addition to therestructuring of unprofitable businesses.
As a result, net sales decreased 15.2% year on year to total 5,322 million yen while segment profit dropped 9.9%
year on year to total 497 million yen.

Europe and the U.S.
In the Apparel Division, sales of accessories for casual wear and workwear decreased.
In the Transportation Division, sales of automotive interior components to Japanese automotive manufacturers
increased.
As a result, net sales increased 5.1% year on year to total 4,999 million yen while segment loss came to 42 million
yen (segment profit for the same period in the previous fiscal year was 126 million yen).

(2) Forecast of Consolidated Business Results and Other Forward-Looking Information
In the consolidated financial forecast for the fiscal year ending November 30, 2023, figures are expected to be higher
than initially announced.
For more information, see "Notice Concerning Revision of Consolidated Financial Forecast for the Fiscal YearEnding November 30, 2023" announced today (October 13, 2023).

― 5 ―2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
As of November 30, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for share awards
Provision for retirement benefits for directors (andother officers)
Provision for share awards for directors (and otherofficers)
Provision for environmental measures
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities― 6 ―As of August 31, 2023

10,399,699
9,255,694
2,847,664
6,953,716
1,076,907(52,481)
30,481,201

11,660,557
7,620,926
3,017,377
6,728,934
999,931(69,186)
29,958,542

4,547,309
5,619,621
10,166,930

4,498,240
5,483,833
9,982,074

2,712,342
1,154,268
3,866,611

2,499,957
1,065,328
3,565,285

4,465,618
286,915
1,150,405(145,760)
5,757,179
19,790,721
50,271,922

5,507,622
287,265
1,113,401(134,317)
6,773,971
20,321,332
50,279,874

4,684,932
940,625
50,000280,008
577,794393,205

3,609,363
996,11750,000280,008
405,922536,683

145,842

83,341

2,237,096
9,309,505

2,025,150
7,986,587

1,423,294
37,4481,213,288
49,25345,55850,08388,46897,48725,968862,554
1,794,765
4,278,056
13,587,562

26,000864,0442,098,128
4,398,287
12,384,875

(Thousands of yen)
As of November 30, 2022
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated 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 accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets― 7 ―As of August 31, 2023

3,532,492
2,962,803
27,539,047(2,174,195)
31,860,146

3,532,492
3,031,906
28,049,918(2,302,049)
32,312,268

1,274,715(15,199)442,187
3,023,530
43,3804,768,615
55,59736,684,360

2,080,959
43,789419,773
2,977,759
31,374
5,553,656
29,07437,894,999

50,271,922

50,279,874

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
The nine-month period
For the nine months
ended August 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Gain on redemption of investment securities
Rental income from real estate
Foreign exchange gains
Share of profit of entities accounted for using equity
methodSubsidies for employment adjustment
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on derivatives
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sales of investment securities
Gain on reversal of share acquisition rights
Gain on sale of golf membership
Insurance claim income
Gain on liquidation of subsidiaries
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Loss on valuation of golf club membership
Claim settlement money
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent― 8 ―(Thousands of yen)
For the nine months
ended August 31, 2023

35,172,332
26,036,399
9,135,932
7,549,389
1,586,542

35,551,815
25,944,746
9,607,069
7,856,431
1,750,637

6,644
51,99858,71911,342

13,28858,04628,80955,12887,961

56,47041,486

4,205-

18,082
23,021
230,484

2,459
69,851
357,032

8,771
60,31569,087
1,747,939

8,481
68,757
37,158114,397
1,993,272

123,184
68,444577
466
70,016262,689

20,462
299,156787
130,102450,508

569
861
48,64850,0791,960,550
759,305(41,008)
718,297
1,242,253
1,242,253

0
4,850
1,690
6,541
2,437,239
795,340(87,852)
707,487
1,729,751
1,729,751

Quarterly Consolidated Statements of Comprehensive Income
The nine-month period(Thousands of yen)
For the nine months
ended August 31, 2023

For the nine months
ended August 31, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests― 9 ―1,242,253

1,729,751(119,290)(10,952)
1,912,587
10,218806,243
58,989(45,771)(12,005)(0)(0)

1,792,562
3,034,815

807,4542,537,206

3,034,815

2,537,206--

(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.

(Changes in Accounting Policies)(Adoption of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Group has adopted the Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ
Guidance No. 31, June 17, 2021) effective as of the beginning of the first quarter of the fiscal year under review. In
accordance with the transitional treatment set forth in paragraph 27-2 of the Implementation Guidance on
Accounting Standard for Fair Value Measurement, the Group has decided to apply the new accounting policy
stipulated by the Implementation Guidance on Accounting Standard for Fair Value Measurement prospectively. This
has no effect on the quarterly consolidated financial statements.

― 10 ―

(Segment Information, Etc.)
Segment informationI

For the nine months of the fiscal year ended November 30, 2022
Information on amounts of net sales and profit (loss) by reportable segment and disaggregated revenue(Thousands of yen)AmountReportable Segment
recorded in
Adjustment Consolidated
Financial
Europe &(Note 1)
Japan
Asia
Total
Statements
the U.S.
(Note 2)
Net sales
Apparel

8,262,233

4,275,603

3,971,004

16,508,842-

16,508,842

Product

12,611,999

532,266

30,96813,175,234-

13,175,234

Transportation

3,265,415

1,469,744

753,095

5,488,255-

5,488,255

Revenue from contracts withcustomers

24,139,648

6,277,615

4,755,068

35,172,332-

35,172,332

Net sales to external customers

24,139,648

6,277,615

4,755,068

35,172,332-

35,172,332

Intersegment sales or transfers

1,306,693

2,485,052

92,2953,884,041(3,884,041)

-

Total

25,446,341

8,762,667

4,847,364

39,056,373(3,884,041)

35,172,332

1,168,665

552,770

126,725

1,848,161(261,618)

1,586,542

Segment profit(Note) 1 The adjustment of (261,618) thousand yen to segment profit includes corporate expenses of (167,456) thousand
yen not allocated to the reportable segments, and other in the amount of (94,162) thousand yen.
2 The amount of segment profit has been adjusted with operating profit in the Quarterly Consolidated Statementsof Income.
II

For the nine months of the fiscal year ending November 30, 2023
Information on amounts of net sales and profit (loss) by reportable segment and disaggregated revenue(Thousands of yen)AmountReportable Segment
recorded in
Adjustment Consolidated
Financial
Europe &(Note 1)
Japan
Asia
Total
Statements
the U.S.
(Note 2)

Net sales
Apparel

8,651,175

4,171,822

3,927,225

16,750,223-

16,750,223

Product

12,938,696

423,784

21,473

13,383,954-

13,383,954

Transportation

3,639,732

727,083

1,050,820

5,417,637-

5,417,637

Revenue from contracts withcustomers

25,229,605

5,322,690

4,999,519

35,551,815-

35,551,815

Net sales to external customers

25,229,605

5,322,690

4,999,519

35,551,815-

35,551,815

Intersegment sales or transfers

1,347,648

3,249,967

69,752

4,667,368(4,667,368)

-

Total

26,577,254

8,572,658

5,069,271

40,219,184(4,667,368)

35,551,815

Segment profit (loss)

1,531,635

497,918(42,665)

1,986,888(236,251)

1,750,637(Note) 1 The adjustment of (236,251) thousand yen to segment profit (loss) includes corporate expenses of (172,500)
thousand yen not allocated to the reportable segments, and other in the amount of (63,750) thousand yen.
2 The amount of segment profit (loss) has been adjusted with operating profit in the Quarterly Consolidated
Statements of Income.

― 11 ―