MORITO CO., LTD.

Company Presentation Materials
for Investors

Where innovation is the norm

Prime Market of TSE: 9837
May 2024© 2024 MORITO CO.,LTD.

CONTENTS■

Company Profile....................

p. 02

■

Business & Products....................

p. 06

■

Morito’s Strengths....................

p. 12

■

Financial Summary....................

p. 21

■

Overview of the 8th Mid-term ....................
Management Plan

p. 25

■

Shareholder Returns

Where innovation is the norm....................

p. 37© 2024 MORITO CO.,LTD.

01

Company Profile

Where innovation is the norm

© 2024 MORITO CO.,LTD.

02

Company Profile
MORITO CO., LTD. (Prime Market of TSE: 9837)

Where innovation is the norm

Founded in 1908 in Osaka
Global development of small partsindispensable to daily life

Stable performance, keeping in theblack even during economic shocks

Sales networks in various markets, suchas apparel, sports, and automotive

Numerous top market shares in Japanand around the world for eyelets, snap
fasteners, MAGIC TAPE®, and more
*Based on in-house research

Where innovation is the norm

© 2024 MORITO CO.,LTD.

03

Morito’s Role
A trading company with manufacturing functions based on the concept of “Connect,
Fasten, Decorate.”
We are involved in the planning and development, manufacturing, procurement, sales,
and customer production follow-up of various parts across all industries, including
clothing, bags, shoes, and automobiles.
Main products since the early days of the Company

Eyelets*Eyelet: A metal ring attached to ahole in shoes, clothing, etc. throughwhich a lace or cord is threaded

Apparel Business

Where innovation is the norm

Shoelaces

Snap fasteners

Product Business

MAGIC TAPE®

Transportation Business© 2024 MORITO CO.,LTD.

04

Morito by the Numbers<FY2023><Shareholder Returns>

Net sales 48,500 million JPY
Operating profit 2,400 million JPY
Net income 2,200 million JPY

DOE target 4.0%
Payout ratio of 50% or more
Forecasted dividend yield of 3.8%
*The forecasted dividend yield is calculated based on the closing price in April 2024 (1,542 yen)

Sales by Business Segment
Apparel, Product, and Transportation

Europe &the U.S.
14%

Transportation
15%

Product
37%

Sales Composition by Region
Japan, Asia, Europe & the U.S.

Apparel
48%

Asia
16%

Japan
70%

(FY2023)

Where innovation is the norm

© 2024 MORITO CO.,LTD.

05

Business & Products

Where innovation is the norm

© 2024 MORITO CO.,LTD.

06

Apparel BusinessWe sell numerous products for famous apparel brands around the world.
One of the most famous apparel brands in Japan uses almost 100% Morito snap fasteners.

Stoppers

Top classmarket sharein Japan

BLOCK TAPEY

Plastic snap fasteners

Hook and bars

Jeans buttons/rivets
Snap/fastener buckles

Blind snap fasteners

Metal snap fasteners

W here innovation is the norm

Top classmarket shareworldwide© 2024 MORITO CO.,LTD.

07

Apparel Business Workwear/Sports
High value-added products, such as those with superior functionality and safety, are ourstrength.
→ In addition to the fashion industry, we also have numerous products for the workwear,
medical wear, sports, and outdoor industries, with stable demand that is unaffected by trends.

Where innovation is the norm

© 2024 MORITO CO.,LTD.

08

Transportation BusinessStarting with the use of eyelets in car mats, the Company handles automotive interior
components primarily for domestic automakers. As we handle interior components, demand is
expected to continue even after the shift to EVs.
Armrests

Gear shift bootCenter armrests lid

Carpet matemblems

Flocking parts

Top classmarket share inJapan

Net frame assemblies
Trunk floor covers
Flocking parts

Luggage nets
Seatback cover

Where innovation is the norm

© 2024 MORITO CO.,LTD.

09

Transportation Business

Shinkansen

The net pockets found in front of seats on Shinkansen trains are also a product of the Morito
Group. This is a stress-free product made using a special knotless manufacturing process thatallows items to be smoothly placed in or taken out of the pockets.

(Enlarged)

Where innovation is the norm

© 2024 MORITO CO.,LTD.

10

Product Business
Recognized for our functionality, durability, and planning capabilities, we sell parts to school
bag manufacturers and have in-house brands for shoe care products, supporters, andwaterproof material bags.
We also deal in the import and sales of products related to surfing, skateboarding, andsnowboarding, which are attracting attention as Olympic sports.

School bags

ZAT® waterproof material bags

Insole and waterproof sprays

Where innovation is the norm

In-house brand supporters

CHANNEL ISLANDS®

etniesNITRO ®

SHAKE JUNT®

© 2024 MORITO CO.,LTD.

11

Morito’s Strengths

W here innovation is the norm

© 2024 MORITO CO.,LTD.

12

Morito’s Strengths

Lines of business for daily necessities, which are unaffected by trends

Stable performance with a diversified portfolio

Global manufacturing, procurement, and sales capabilities

Enjoying high market share for various products targeting niche areas

Global niche top company

Where innovation is the norm

© 2024 MORITO CO.,LTD.

13

Lines of business for daily necessities, which are unaffected by trends
Since we deal in parts for things that are vital to people’s daily lives, many of our businesses
are essentially immune to trends or economic downturns and can continue to operate as
usual. Products for government and other public offices are also available.

Where innovation is the norm

Baby wear

Workwear and harnesses

School bags

Insoles© 2024 MORITO CO.,LTD.

14

Stable performance with a diversified portfolio
1

A diversified portfolio with three businesses and products for a wide range of industries→The Company’s own performance is not dependent on the performance of specificbusinesses or products

Transportation Business

Trends in Net Sales by Business Segment
Transportation
Business(Million JPY)

Product BusinessApparel Business

7,622

7,358

16,96918,456

19,77518,03917,856• Skateboards and surfboards• Shoe care products, etc.

15,642
15,476

17,89819,049Product Business• Teaching tools and stationery

7,738
18,06017,638

7,467

8,070

5,380

24,244
18,648• Railway interior components• Aircraft interior components, etc.

6,152
4,410

• Automotive interior components

19,03919,33518,855

22,795
17,51323,20519,923

Apparel Business• Fashion

17,214
15,247• Sports
2013

2014

Where innovation is the norm

2015

2016

2017

2018

2019

2020

2021

2022

2023

• Workwear, etc.

© 2024 MORITO CO.,LTD.

15

Stable performance with a diversified portfolio
2

Expanding business worldwide and handling both importing and exporting→ Hedging against exchange rates and geopolitical risks

Net Sales by Region

Ratio of Imports to Exports

Europe &the U.S.
14%
Asia
16%

Imports

Japan
70%= Approx.

: Exports

6 : 4(FY2023)

Where innovation is the norm

© 2024 MORITO CO.,LTD.

16

Global manufacturing, procurement, and sales capabilities
Manufacturing, procurement, and sales networks spread across the world.
We also have partner plants and distributors all over the world, giving us close proximity to ourcustomers and the ability to respond to their every need.
Group location

Distributor

13

10
11

9
1

8

4
3 2
7

5

14

1

MORITO

12

15

6

6 MORITO TRADING (THAILAND)MORITO APPARELMYANMAR REPRESENTATIVE OFFICE

11

MORITO (EUROPE) FRANCEREPRESENTATIVE OFFICE

12

MORITO SCOVILL AMERICAS

2

MORITO SCOVILL HONG KONG

73

MORITO (SHENZHEN)

8 MORITO NORTH AMERICA13

SCOVILL FASTENERS UK

4

MORITO SHANGHAI / MATEX SHANGHAI

9 MORITO NORTH AMERICA MICHIGAN BRANCH14SCOVILL FASTENERS INDIA

5

MORITO DANANG
MORITO DANANG HO CHI MINH BRANCH

10 MORITO (EUROPE)

15

MORITO SCOVILL MEXICO

Where innovation is the norm

© 2024 MORITO CO.,LTD.

17

Enjoying high market share for various products targeting niche areas
We have captured a share of the market for parts that are niche yet indispensable todaily life both in Japan and internationally.

Metal snap fasteners

No. 2
worldwide

Designated supplier for national brands forbaby clothes

MAGIC TAPE®

No. 1 inJapan

No. 1 inJapan

Insoles

Surfboard blanks
US BLANKS import distributor

Car mat emblems

No. 1 inJapan

No. 1 inJapan

No. 1 inJapan

No. 1 inJapan

No. 1 inJapan

Numerous

Eyelets and snap fasteners

Hook and bars

Commercial grease filter
rental service

Patents, utility models,designs, and trademarks*Based on in-house research

W here innovation is the norm

© 2024 MORITO CO.,LTD.

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Why the High Market Share?
1

We have established a support system from the development and selection of parts thatmeet customer needs up to the completion of products, and consistently ensure stable
quality control on a global scale(1) Listening to customer needs(2) Product proposal or development thatmeets needs, development of original
products and parts(3) Maintenance and operational guidance forsnap fastener machines in customers’
production plants(4) In the unlikely event of issues such as productdefects, staff from domestic or overseas
offices directly visit customers’ factories andother locations to provide support

W here innovation is the norm

© 2024 MORITO CO.,LTD.

19

Why the High Market Share?
2

We provide safe and reliable products that cover the quality standards of countries
around the world

We provide high-quality products that meet the various quality standards that differ depending
on region, such as Asia and Europe. We have gained market share in industries that demandhigh quality, such as accessories for baby wear, workwear, and medical wear.

W here innovation is the norm

© 2024 MORITO CO.,LTD.

20

Financial Summary

W here innovation is the norm

© 2024 MORITO CO.,LTD.

21

FY2023

Summary of Financial Results(Million JPY)

FY2023

Increase/Decrease

FY2024

Y/Y

Net sales

48,47848,529+51+0.1%

Gross profit

12,487

13,265

+778

+6.2%

Gross profit ratio

25.8%

27.3%

Cost

10,37010,801

+431

+4.2%

Cost ratio

21.4%

22.3%

Operating profit

2,116

2,464

+348

+16.4%

Operating profit ratio

4.4%

5.1%

Ordinary profit

2,342

2,771

+429

+18.3%

Ordinary profit ratio

4.8%

5.7%

Net income

1,674

2,217

+543

+32.5%Net income ratio

3.5%

4.6%

W here innovation is the norm

© 2024 MORITO CO.,LTD.

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Ten-Year Trends in Net Sales and Operating Profit (Consolidated)
In FY2023, sales reached a record high.
In FY2024, we aim to achieve 51,000 million yen in net sales and 2,600 million yen in operating
profit, both record highs.
(Million JPY)

Net sales

Operating profit
3,000
51,00048,47850,00048,52945,98743,94343,29340,086

43,636

41,3882,500

40,72740,00035,8622,000

30,000

2,600

1,500

2,464
20,000

1,721
10,000

1,767

1,707

1,725

1,000

2,116

1,734

1,619

1,429

Net sales02014

W here innovation is the norm

2015

2016

2017

2018

2019

2020

2021

2022

2023

0
2024 forecast

Operating profit

500
856

© 2024 MORITO CO.,LTD.

23

FY2023

Consolidated Balance SheetSound financial condition

Equity ratio 74.7%(Million JPY)

2022 4Q

2023 4Q

2022 4Q

AssetsCurrent assets

30,4812023 4Q

Liabilities

31,149(+668)

Current liabilities

9,309

8,589

Fixed liabilities

4,278

4,382

Total liabilities

13,587

12,972(-720)(+104)(-615)Net assets

Fixed assets

19,79020,280(+490)

Total assets

50,271

51,429(+1,158)

Shareholders’equity31,86032,673

Accumulated othercomprehensive income

4,768

5,760

Share acquisitionrights55

Total net assets

36,68438,457

Total liabilities andnet assets

50,271

51,429(+813)(+992)

23(-32)(+1,773)(+1,158)

Equity ratio 74.7% (2022 4Q: 72.9%)

Where innovation is the norm

© 2024 MORITO CO.,LTD.

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Overview of the 8th Mid-termManagement Plan

W here innovation is the norm

© 2024 MORITO CO.,LTD.

25

Medium- and Long-term Policy

Morito’s Vision

Become a global niche top company
that keeps making a big difference inthe world with small parts

Where innovation is the norm

© 2024 MORITO CO.,LTD.

26

Efforts Over the Past 5 Years (FY2019 – FY2023)
Through efforts such as corporate splits centered on structural reforms, we have seen aremarkable recovery in sales and improvements to profit margin from the COVID-19 pandemic,
and we have built a robust profit structure.

Capital investment toimprove production
efficiency
Morito Scovill Americas, Ace
Industrial Machinery,
Morito Scovill Mexico, andMorito Danang

Started developing a
local procurement
network in eachcountry with country
risks in mind

45,987In-house logistics
centers went into fullscale operation

Gained new business
opportunities during
the pandemic

43,636
1,734

40,727

2,464
2,116

Split the largest operatingcompany and withdrew from
unprofitable businesses

Introduced a personnel
evaluation system with
CCC in mind

Launched the Rideeco®
environmental initiative

Raised awareness about
profitability and inventory
management of operatingcompanies

2022

2023

Announced the 8th Mid-term Management Plan

Period for building a business structure designed
to weather the COVID-19 pandemic(2-year extension for achieving financial targets)

2019

48,5291,619

856
Split into a pure holding
company and an
operating company

48,478

Shareholder returns
Adoption of the DOE
target of 4.0%

2020

2021

Net sales

Operating profit(Million JPY)

Where innovation is the norm

© 2024 MORITO CO.,LTD.

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8th Mid-term Management Plan

Financial Target Update

Focus on increasing our top line, in addition to keeping the recently improved profit margin
up. Aim to further expand the scale of operations.

Net sales

Operating profit

60,000 million
JPY

3,000 million
JPY+10,000 million
JPY (+20.0%)

48,500
million JPY

50,000
million JPY+500 million
JPY (+20.0%)

2,400
million JPY

2,500
million JPY

Operating profit
ratio of 5.0%2023 results

Where innovation is the norm

2026 initial target

2026 revised target

2023 results

2026 initial target

Operating profit
ratio of 5.0%2026 revised target© 2024 MORITO CO.,LTD.

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Basic Policy of the Updated 8th Mid-term Management Plan

Build a global earnings
base and management
systemRevampmanagement
structure andsow seeds forincreasing profit

7th Mid-termManagement Plan

Period for building abusiness structure
designed to weather
the COVID-19
pandemic

Establish a lean profit structure
Aggressively invest for the future

Increase both the
top line and profit
margin80,000

Our vision for FY2030

8th Mid-term Management Plan

Net sales: 80,000
million JPY Operating
profit: 5,000 million
JPY ROE: 8.0%

60,00048,5295,000

48,478Bring net
sales up to
100,000
million JPY

45,98743,94340,086

43,636

41,38840,727

2,464

2,116
3,000

1,767

1,707 1,725

1,734

1,619

Net sales

8th Mid-term Management Plan (5 years)

856

Operating profit(Million JPY)

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

Targets

Where innovation is the norm

© 2024 MORITO CO.,LTD.

29

8th Mid-term Management Plan

Growth Strategy [®

Environmental Initiative]

Rideeco® is the Morito Group’s initiative to develop environmentally friendly products
launched in fiscal 2021. We work to create new value so we can pass on our beautiful planet
and its resources to future generations as we join hands with people and companies acrossall industries who share this same dream.

Recycling unwanted materials to create new value and contribute to sustainability

Recycling discarded fishing nets

Recycling fabric scraps

Ride for Eco:
It sums up our commitment tosustainability.

Relation
Build relationships and collaborate
with various businesses andindustries to create new value,

Initiative

Removing debris from discarded fishing nets

Upcycling items used by sports teams

take action to build a sustainable
society instead of being a
bystander,

Devotedevote our wisdom not only to the
pursuit of short-term profits but
also to the future of society,
Energyand act with perseverance andenergy.

▶ Rideeco® website

W here innovation is the norm

© 2024 MORITO CO.,LTD.

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8th Mid-term Management Plan®

Growth Strategy [Environmental Initiative]

It is estimated that about 40% of the total weight of plastic waste that washes ashore in Japan is
discarded fishing nets and ropes*. We develop and sell materials made from recycled fishingnets. Recruitment and inquiries are increasing, and sales are expanding. We are also focusing on
new product development.

STEP

STEP

STEP

1

2

3

Collecting discarded
fishing nets

Sorting andreducing volume

Cleaning, cutting, heating, andpelletizing

Hokkaido area

Hokkaido area

(Fishermen)(Cooperating factories)

Ichinomiya City, Aichi
Prefecture

Various fisheries and fishermen
are asked to cooperate insorting and collecting.

Collected waste fishing nets
are sorted by material andcompressed for processing.

Toyooka Kaban® schoolbag “UMI”(Refinverse, Inc.)
Discarded fishing nets are cleaned to
produce recycled pellets.
*The spinning process is carried out atoverseas plants

Pen case from Kokuyo Co., Ltd.
Neo Critz® <From Fishing Nets Recycling>

DOCTORAIR®
- “BLUE LIFE” series - product*Survey of marine debris by the Ministry of the Environment in FY2016.

W here innovation is the norm

© 2024 MORITO CO.,LTD.

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8th Mid-term Management Plan®

Growth Strategy [Environmental Initiative]

ASUKAMI® is mixed paper made from scraps from sewing factories.
Its greatest strength is that not only natural fibers such as food and plants, but also chemical
fibers can be utilized as raw materials. It has been adopted by World Co., Ltd. for tags,
envelopes, and business cards, and there is also work underway on industry-academia
collaborations with universities and other organizations.

Unnecessary paper, fabricand scraps leftover from theproduction process, collectedclothes, etc.

Utilized once
more as paper
products!

Compl
etion

Waste
Material

From leftover cloth containing
chemical fibers to tags and paperbags used for apparel products, etc.

Pulverized PaperRecovery

Waste is collected and sorted.

Original recycled paper is produced by pulverizing waste materials at paper companies
and mixing them with other pulverized materials in the papermaking process

W here innovation is the norm

© 2024 MORITO CO.,LTD.

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8th Mid-term Management Plan

Growth Strategy [Product Business’ Kitchen Appliance-related Services]● Capital investment to improve
operational efficiency

Overview of kitchen appliance-related services
Ace Industrial Machinery Co., Ltd. provides a rental service for various filters used incommercial kitchen exhaust ducts, including filter exchange, delivery, and cleaning
services. The company also offers kitchen exhaust hood cleaning services, helping
restaurant operators to realize a comfortable working environment and mitigate the riskof fire.

→ Automating company plants andinstalling state-of-the-art cleaningsystems at each location

Areas where grease filters are installed
Exhaust ductFire damper
Filter housing (V-bank)● Expansion of service coverage

Oil hose

Oil cupHood

Filter→ Kanto, Kansai, Hokkaido, Chugoku,
Shikoku, etc.
Grease filter● Expanding comprehensive
maintenance services designed torealize a safe and comfortableenvironment

A grease filter is installed at the inlet of the exhaust duct in restaurant kitchens.
It reduces grease build-up in the ducts and the risk of fire.

→ Restaurants, supermarkets, foodfactories, hotels, etc.
In-house plant equipment

Where innovation is the norm

Automatic filter cleaning and drying with an automatically controlled crane© 2024 MORITO CO.,LTD.

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8th Mid-term Management Plan

Growth Strategy [Focus on B2C Businesses]
We are working to become a global brand by creating authentic items with a focus onfunction, parts, and design.

Outdoor brand POLeR®

Down wear brand YOSOOU®

Where innovation is the norm

Bag brand 52 BY HIKARUMATSUMURA© 2024 MORITO CO.,LTD.

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8th Mid-term Management Plan

Investment Strategy

Aggressive investments are planned for further growth during the period of the 8th Mid-termManagement Plan and beyond (from FY2027).

Existing investments and equipment retention

Operating CF
7,000 million JPY±20%

Cash on handExternal
procurement

1,200 million JPY

Growth investment
New product development expenses

500 million JPY

Initiatives to reduce environmental impact

500 million JPY

Capital investments (Ace Industrial Machinery, Morito Scovill Americas, Morito Danang, Morito Scovill Mexico)

600 million JPY

Strengthening B2C

300 million JPY

Building data infrastructure and enhancing BI functions

500 million JPY

Investing in human capital

100 million JPY

M&A

5,000 million JPY

Shareholder Returns

6,000 million JPY*Total investments over 3 years up until FY2026

W here innovation is the norm

© 2024 MORITO CO.,LTD.

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8th Mid-term Management Plan

Investment Strategy [M&A]

1. Niche top company

M&A policy

2. Group synergies

Low risk

Acquired in 2014: GSG FASTENERS, LLC(now Morito Scovill Americas, LLC)

3. Stable earnings base

Increasing global share
Affiliate for apparel, footwear, and bag materials

Acquired in 2014:
Matex Inc.

Expanding manufacturing functions
Manufacturer of resins, metals, and fibers for automobile interior
components and apparel materials

PriorityStrengthening B2C businessHigh risk

High-end brand offering high added value such as functionality, design, durability, etc.

Entering a new market

Acquired in 2018:
Maneuverline Co., Ltd.

Residential space, healthcare, and service
companies

W here innovation is the norm

© 2024 MORITO CO.,LTD.

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Shareholder Returns

W here innovation is the norm

© 2024 MORITO CO.,LTD.

37

Basic Dividend Policy
We regard returning profits to shareholders as one of the most important management
issues, and determine the amount of dividends based on the following policy, taking
into consideration investment projects and financial conditions (net assets, etc.).

Realize stable
and continuous
dividend
payments

Dividend payout
ratio of 50% or
more
in relation to profit
attributable to owners ofparent is the standard

Continue to consider buying back shares whenever necessary
and canceling them appropriately

Where innovation is the norm

Standard of adividend on equity(DOE) ratio of 4.0%

* In a fiscal year with a significant fluctuation inafter-tax profit attributable to owners of parent due
to special factors such as extraordinary income orlosses, the dividend amount will be determined inconsideration of the corresponding impact.

© 2024 MORITO CO.,LTD.

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Trends of Dividend, Dividend Payout Ratio & DOE

We adopted a revised basic dividend policy in FY2023.
60.0
50.0

Forecast

Annual Ordinary
Dividend (JPY)

40.0
Commemorative
Dividend (JPY)

30.0
20.0

Forecast

Net Income (100Million JPY)

10.0
0.0
2018

2019

2020

2021

2022

2023

2024
(forecast)

12.5

14.0

4.7

14.0

16.7

22.1

23.0

25.0

26.0

18.0

26.0

29.0

55.0

58.0

12.5

13.0

13.25

9.0

13.5

27.0

29.0

12.5

13.0

4.75

17.0

18.5

28.0

29.0

Dividend payout ratio (%)

54.7

50.8

104.8

50.6

51.4

66.2

67.1

DOE (%)

2.1

2.2

1.5

2.2

2.4

3.9

4.0

Net income (100 million
JPY)
Annual dividend per share(JPY)
Interim dividend per share(JPY)
Year-end dividend pershare (JPY)

W here innovation is the norm

© 2024 MORITO CO.,LTD.

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Summary✓ Parts indispensable to daily life

✓ Global niche top company✓ Rideeco® environmental
initiative✓ Sound financial condition✓ Stable performance✓ High dividend yield

Morito Stock Information

Company Name

MORITO CO., LTD.

Securities Code 9837

Listed Market

TSE Prime Market

Share Unit

100 shares

Accounting Period

End of November

Dividends

Twice a year

Where innovation is the norm

© 2024 MORITO CO.,LTD.

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Disclaimer

This handout has been prepared only for information purposes and is not intended tosolicit investment.
Although this handout is made with extreme care, its completeness cannot be
guaranteed.
We assume no responsibility whatsoever for any damages resulting from the contents.
The financial results forecasts and forward-looking statements in this presentation are
made with information known as of the day of presentation and contain some potential
risks and uncertainties.
Therefore, please be aware that the content of the forecast may differ significantly
from actual results, due to various factors such as change of business environment.

Contact
MORITO CO., LTD.

Where innovation is the norm

4-2-4, Minami Honmachi, Chuo-ku, Osaka 541-0054 Japan
Investor Relations/Public
Relations Department

E-mail:ir@morito.co.jp© 2024 MORITO CO.,LTD.

41

Where innovation is the norm

Where innovation is the norm

© 2024 MORITO CO.,LTD.

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