(Unaudited)

April 12, 2019
MORITO CO., LTD.
Financial Statement (Unaudited)
For the First Quarter of the Fiscal Year ended November 30, 2019
(Translated from the Japanese original)
Corporate Information
Code：9837 Listings in First 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, Corporate management
Telephone: +81-6-6252-3551
April 12, 2019
YesNone(Amounts rounded down)
1. Consolidated Financial Results for the First Quarter of the Fiscal Year 2019(December 1, 2018 throughFebruary 28, 2019)(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
1Q of FY 201911,145 10.5
370
3.2
347
11.4
210
△10.5
1Q of FY 201810,082
5.3
359
30.1
311
4.7
235
32.7
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:(Note) Comprehensive income : △204 million yen ( -%) (1Q of FY2019)

1Q of FY 2019
1Q of FY 2018

Net income
Per share
Yen
7.65
8.55

298 million yen (△80.7%)(1Q of FY 2018)

Fully diluted net
Income per share
Yen－
8.53

(2) Consolidated Financial Position
Total assets
Millions of yen
1Q of FY 201946,814
FY 2018
48,011

Net assets
Millions of yen
32,39432,959Equity ratio%
69.1
68.5

(Reference) Equity capital : 32,335 million yen (1Q of FY 2019)
32,905 million yen (FY 2018)(Note) We have started to adopt “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ

Statement No. 28 issued on February 16, 2018) at the beginning of the first quarter of FY2019. Therefore,
major management index in the consolidated financial result for the fiscal year 2018 are restated by using
the consolidated financial results which adopted this amendment.

2. DividendsFirstquarter-end
Yen

Dividends per share
SecondThird
Fiscalquarter-end
quarter-end
year-end
Yen
Yen
Yen
12.50
12.50

FY 2018
FY 2019
FY 2019
13.00
13.00(Forecast)(Note) Revisions of dividend forecast to the latest announcement: None1

AnnualYen
25.00
26.00

(Unaudited)

3. Consolidated Forecast for FY 2019 (December 1, 2018 through November 30, 2019)(Percentages represent changes from corresponding period of previous year)
Net Sales
Millions ofyen

Full year

47,000Ordinary profit

Operating income%
7.0

Millions ofyen

1,900Millions ofyen%
10.1

1,900%Net income
per share

Net income
Millions ofyen

6.1

1,400%
11.3

Yen
50.90

*Notes(1) Changes of important subsidiaries during the period (changes of specific subsidiaries in accordance withchanges in the scope 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:(ii)
Changes in accounting policies other than (i):(iii)
Changes in accounting estimates:(iv)
Restatements:

None
None
None
None

(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 February 28, 2019)30,800,000 shares(as of November 30, 2018)(ii) Number of shares of treasury stock at end of period:
3, 290, 500 shares(as of February 28, 2019)3, 290, 700 shares(as of November 30, 2018)(iii) Average outstanding number of shares during the period:
27,509,367 shares(the 1Q of FY2019)27,500,000 shares(the 1Q of FY2018)*This quarterly financial summary does not need to undergo an audit.
*Disclosure and other special notes regarding performance forecasts
The forecast in this quarterly statement 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 in mind when using the forecasts and criteria conditioned upon theforecasts, please refer to “1. Qualitative Information for the Period under Review (2) Outlook for the next fiscalyear” on page 5.
We have also introduced “Stock Granting Trust (J-ESOP)” and “Board Incentive Plan (BIP)”. Consequently, theshares held by Trust and Custody Service Bank, ltd. and The Master Trust Bank of Japan, ltd. are included in thetreasury stock.

2(Unaudited)Index
1. Qualitative Information for the Period under Review ......................................................................................4(1) Overview of Business Performance .............................................................................................................4(2) Forecast of Consolidated Business Results and other Forward-looking Informantion ........................5
2. Quarterly Consolidated Financial Statements .................................................................................................6(1) Quarterly Consolidated Balance Sheets......................................................................................................6(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive
Income...................................................................................................................................................................8(3) Notes regarding Quarterly Consolidated Financial Statements .............................................................10[Notes on assumption of going concern] .............................................................................................................10[Notes on a Significant Change in Shareholders’ Equity] ....................................................................................10[Additional Information] ........................................................................................................................................10[Segment Information] .........................................................................................................................................103

(Unaudited)

1. Qualitative Information for the Period under Review(1) Overview of Business Performance
In the first quarter (From 1st December, 2018 to 28th February, 2019) of the fiscal year ended November 30th,2019 (From 1st December, 2018 to 30th November, 2019), the Japanese economy has continued modest
recovery due to improved corporate performance and increased consumer spending.
In the global economy, despite concerns about the increase of the US-China trade friction and the impact offinancial market on the global economy, the global economy was on a recovery trend.
In such a situation, we will transit to a holding company in this year with positioning this year as the year of“Structural Reform”. Furthermore, our group is accelerating a growth strategy by the development ofvalue-added Japanese items, expansion of a global sales channel underthe corporate vision 『Create Morito’sexistence value, Realize “New Morito Group”, 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 untappedmarket.
As a result, in the current quarterly performance reaches net sales ¥11,145, million (increased by 10.5% froma year earlier), operating income ¥370 million (increased by 3.2% from a year earlier), ordinary income ¥347
million (increased by 11.4. % from a year earlier), net income ¥210 million (decreased by 10.5 % from a yearearlier).
The exchange rate used for the oversea subsidiaries’ consolidated financial statement of the current quarterend as below:
USD
EUR
RMB
HKD
TWD
VND
THB
MXN

1Q Oct-Dec
112.91 (112.98)
128.82 (133.01)
16.32 (17.08)
14.42 (14.47)
3.66 (3.75)
0.0048 (0.0050)
3.44 (3.43)
5.70 (-)(Notes)st
1. ( ) is the exchange rate of the 1 quarter of FY2018.
2. The result of MORITO SCOVILL MEXICO S.A. de C.V. included in the consolidated subsidiary from the firstquarter of the FY2019. The exchange rate used to convert income and expense for consolidated financial
results of this subsidiary is Mexican Peso (MXN).

Segment information as below[Japan]As for the apparel division, sales of the accessories for bags and uniform/working wear were increased.
In the consumer product division, sales of products for one dollar shop, automobile interior components wereincreased.
Furthermore, the results of MANEUVERLINE CO., LTD. which acquired in April, were included in theconsolidated income statement from the third quarter of FY2018. Accordingly, sales of business onMANEUVERLINE CO., LTD. which imports and sells goods for marine leisure, snowboarding, andskateboarding were increased in the consolidated income statement for the first quarter of FY2019.
As a result, net sales were ¥8,350 million (increased by 20.2% from a year earlier).
[Asia]
As for the apparel division, sales of the accessories for Japanese apparel manufacturers in Shanghai and EU
and the US apparel manufacturers in Hong Kong were decreased.
In the consumer product division, sales of the products for healthcare in Shanghai was increased, however
sales of accessories for video equipment in Thailand was decreased.
4(Unaudited)

As a result, net sales were ¥1,460 million (decreased by 13.5% from a year earlier).
[Europe and the U.S.]
As for the apparel division, sales of the accessories in EU and the US were decreased.
In the consumer product division, sales of automobile interior component for Japanese auto makers in EU andthe US were increased.
As a result, net sales were ¥1,334 million (decreased by 7.7% from a year earlier).
(2) Forecast of Consolidated Business Results and other Forward-looking Informantion
Currently, there has been no change in the consolidated forecast of FY2019 which was announced in 11thJanuary, 2019.

5

(Unaudited)

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets
FY 2018(As of Februry 28, 2018)
Thousands of yen

FY 2019(As of Februry 28, 2019)
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
LandOther tangible fixed assets
Total tangible fixed assets
Intangible 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
Bonds payable
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

6

9,343,274
12,008,498
5,406,890
859,513

9,218,675
11,264,598
5,684,416
694,406△38,224
27,579,953△39,101
26,822,996

4,332,821
5,813,996
10,146,818

4,331,353
5,852,539
10,183,892

3,196,351
1,156,215
4,352,566

3,079,220
1,170,318
4,249,538

4,727,033
237,765
1,033,134

4,401,744
237,350
984,926△75,148
5,922,784
20,422,170
9,802
48,011,926△75,1395,548,881
19,982,313
8,752
46,814,061

4,500,593
200,000
400,000
749,146
128,612225,23156,9291,665,881
7,926,394

4,641,202
200,000
400,000
729,375
203,454
194,630
22,728
1,192,577
7,583,969

600,000
3,667,331
26,501
48,58371,04020,367
894,881
1,797,615
7,126,319
15,052,714

600,000
3,513,782
25,60250,57476,027
19,889877,189
1,672,789
6,835,854
14,419,824

(Unaudited)
FY 2018(As of Februry 28, 2018)
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

7FY 2019(As of Februry 28, 2019)
Thousands of yen

3,532,492
3,498,724
25,277,180

3,532,492
3,498,724
25,122,515△2,118,444
30,189,951△2,118,366
30,035,364

1,409,695
451
571,368
802,769△68,550
2,715,733
53,526－32,959,212
48,011,926

1,208,152
258
571,368
583,031△62,226
2,300,583
58,289－32,394,237
46,814,061

(Unaudited)(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income
The First Quarter accounting period

FY 2018
FY 2019(December 1, 2017 through (December 1, 2018 throughFebrury 28, 2018)
Februry 28, 2019)
Thousands of yen
Thousands of yen
Net sales
Cost of sales
Gross profit
Total selling, general and administrative expense
Operating Income
Non-operating income
Interest received
Dividends received
Rent on real estate
Equity in earnings of affiliates
Subsidy income
Insurance income
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
Total extra ordinary income
Extra ordinary loss
Loss on sales of fixed assets
Loss on disposal of fixed assets
Loss of business restructuring
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

8

10,082,802
7,374,953
2,707,848
2,348,692

11,145,908
8,073,510
3,072,398
2,701,600

359,156

370,798

6,094
6,608
10,048
10,463
12,779－2,535
48,5305,775
8,769
12,541
10,799－12,994
8,023
58,904760
19,78653,99821,437
95,983
311,702

1,772
21,317
27,33731,90982,336347,365

126
126

29
29

34
2,829
4,782
7,646

－
2,769
1,046
3,815

304,182
140,517△71,51469,003
235,179－
235,179

343,579
161,831△28,690
133,140
210,439－
210,439

(Unaudited)

Quarterly Consolidated Statements of Comprehensive Income
The First Quarter accounting period
FY 2018
FY 2019(December 1, 2017 through (December 1, 2018 throughFebrury 28, 2018)
Februry 28, 2019)
Thousands of yen
Thousands of 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

9235,179

210,439△24,701
335
86,612
1,506△201,542△193△219,738
6,323

5063,758
298,937△415,150△204,711

298,937－△204,711－

(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[Additional Information](Adoption of “Partial Amendments to Accounting Standard for Tax Effect Accounting)
We have started to adopt “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ
Statement No. 28 issued on February 16, 2018) at the beginning of the first quarter of FY2019. Therefore,deferred tax assets are shown in the category of Investments and other fixed asses, and deferred tax liabilities
are shown in the category of Fixed liabilities.
[Segment Information]
1. The First Quarter of FY 2018 (December 1, 2017 through February 28, 2018)
The information on net sales, income or loss by reportable segment
Reportable Segment

Net Sales
Sales to externalcustomers
Inter segment salesand transfer
Total
Segment income(Thousands of yen)
Consolidated
Adjustment
Statement(Note 1)
Amount(Note 2)

JapanAsia

EU and US

Total

6,949,110

1,687,598

1,446,093

10,082,802－

10,082,802

561,900

853,857

13,994

1,429,752△1,429,752－

7,511,010
275,605

2,541,455
144,954

1,460,087
35,701

11,512,554
456,261△1,429,752△97,105

10,082,802
359,156(Notes)1. Adjustment of △97,105 thousand yen includes △73,837 thousand yen corporate expenses that are notdistributed to each reportable segment and other △23,268 thousand yen.
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.

2. The First Quarter of FY 2019 (December 1, 2018 through February 28, 2019)
The information on net sales, income or loss by reportable segment
Reportable Segment

Net Sales
Sales to externalcustomers
Inter segment sales
and transfer
Total
Segment income(Thousands of yen)
Consolidated
Adjustment
Statement(Note 1)
Amount(Note 2)

JapanAsia

EU and US

Total

8,350,998

1,460,458

1,334,451

11,145,908－11,145,908

601,546

778,117

2,514

1,382,178△1,382,178－

8,952,544
433,838

2,238,576
121,854

1,336,965△48,637

12,528,086
507,055△1,382,178△136,257

11,145,908
370,798(Notes)1. Adjustment of △136,257 thousand yen includes △86,663 thousand yen corporate expenses that are notdistributed to each reportable segment and other △49,593 thousand yen.
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.

10