(Unaudited)

October 11, 2016
MORITO CO., LTD.
Financial Statement (Unaudited)
For the Third 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:

October 14, 2016
―YesYes(Amounts rounded down)
1. Consolidated Financial Results for the Third Quarter of Fiscal Year 2016(December 1, 2015 through August 31,2016)(1) Consolidated Financial Results(Percentages indicate year-on-year changes)
Net sales
Operating income
Ordinary income
Net income
Millions of%Millions of%Millions of%Millions of%yenyenyenyen
3Q of
29,221
971
787
498
△37.4
△9.7
△21.4
△43.6
FY 2016
3Q of32,353
25.0
1,236
34.51,39735.8797△23.4
FY 2015(Note) Comprehensive income: △1,702million yen (△166.6%) (3Q of FY 2016) 2,556million yen (105.5%) (2Q of FY2015)

3Q ofFY 2016
3Q ofFY 2015

Net income
Per share
Yen
17.51

Fully diluted net
Income per share
Yen－

27.51

－(2) Consolidated Financial Position
Total assets
Net assets
Millions of yen
Millions of yen
3Q of
39,99928,702
FY 2016
FY 2015
47,331
31,113(Reference) Equity capital: 28,694million yen (2Q of FY 2016)
2. Dividends

FY 2015
FY 2016
FY 2016(Forecast)Firstquarterend
Yen－－Dividends per share
SecondThird
Fiscalquarter- quarteryearend
endend
Yen
Yen
Yen
7.00
7.50－
8.00
8.00
－Total(Annual)Yen
14.5016.00

Equity ratio
%
71.7
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
1,00035.11△30.2(Note) Revision of consolidated earnings forecast to the latest announcement: None
*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 August 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 August 31, 2015)
2,023,820 shares(as of November 30, 2015)(iii) Average outstanding number of shares during the period:
288,497,136 shares(the Third quarter of FY 2016)
288,973,484 shares(the Third 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 4We 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)Notes regarding Quarterly Consolidated Financial Statements ..................................................................10[Notes on assumption of going concern] ......................................................................................................................10[Notes on a Significant Change in Shareholders’ Equity] ...............................................................................................10[Segment Information]................................................................................................................................................10

(Unaudited)

1. Qualitative Information for the Period under Review(1) Business Performance
In the Third quarterly (From December 1, 2015 to August 31, 2016) of the fiscal year ended November 30, 2016, theJapanese economy has shown signs of modest recovery by economy policy of government and monetary easing of bankof Japan. However, the uncertain economy situation maintains because of export and capital investments are still weak
due to yen appreciation.
In the global economy, the developed countries especially U.S. are leading slow recovery, but it is still uncertain because
emerging countries especially China are showing slowdown, and EU economy is also uncertain due to Brexit.
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 ¥29,221million (decreased by 9.7% from a year earlier),
operating income ¥971 million (decreased by 21.4% from a year earlier), ordinary income ¥787 million (decreased by
43.6% from a year earlier), net income ¥498 million (decreased by 37.4% from a year earlier).
The exchange rate used for the consolidated financial statement of the current quarter end as below:¥102.96 to the U.S. dollar, ¥114.36 to the euro, ¥15.46 to the Chinese yuan, ¥13.27 to the Hong Kong dollar,¥3.19 to the Taiwan dollar, ¥0.0046 to the Vietnamese dong, ¥2.93 to the Thai baht.
The exchange rate used for the consolidated financial statement of the year earlier quarter end as below:¥122.48 to the U.S. dollar, ¥137.20 to the euro, ¥19.74 to the Chinese yuan, ¥15.80 to the Hong Kong dollar,¥3.97 to the Taiwan dollar, ¥0.0056 to the Vietnamese dong, ¥3.64 to the Thai baht.

Segment information as below[Japan]As for the apparel division, sales of the accessories for domestic mass retailer and sports 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 ¥20,344 million (decreased by 2.2% 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 ¥4,769 million (increased by 24.6% from a year earlier).
[Europe and the U.S.]
As for the apparel division, sales of the accessories for working wear in EU 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 ¥4,107 million (decreased by 21.5% 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), theAccounting Standard for Consolidated Financial Statements (ASBJ Statement No. 22 of September 13, 2013), and theAccounting 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 August 31, 2015 and fiscal year
ended November 30, 2015 have been replaced.
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 theAccounting 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.
(Application of the Practical Solution on a Change in Depreciation Method due to Tax Reform 2016)
Pursuant to an amendment in the Corporation Tax Act, the Company has applied the Practical Solution on a Change inDepreciation Method due to Tax Reform 2016 (Practical Issue Task Force (PITF) No.32 issued on June 17, 2016) from thethird quarter of the current fiscal year. Accordingly, the Company changed the depreciation method for facilities attached tobuildings and structures acquired on and after April 1, 2016 from the declining-balance method to the straight-line method.
The effect of this change in accounting policies to the quarterly consolidated financial statements for the first quarter underreview is immaterial.

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 August 31, 2016)
Thousands of yen

10,010,892
10,755,928
4,403,602
1,035,105△38,959

8,802,864
9,782,856
4,476,095
772,769△35,470

26,166,569

23,799,116

Land

5,926,237

3,368,784

Other tangible fixed assets

4,077,419

3,139,782

Total tangible fixed assets

10,003,656

6,508,566

Intangible fixed assets
Goodwill
Other Intangible fixed assets

3,687,7901,549,867

3,097,960
1,288,078

Total intangible fixed assets

5,237,657

4,386,039

Investments and other fixed assets
Investment securities
Net defined benefit asset
Other fixed assets
Allowance for doubtful account4,634,984
400,076
968,566△80,3933,947,052
399,946
1,015,761△75,819

5,923,234

5,286940

21,164,548

16,181,546－19,255

Total assets

47,331,118

39,999,919

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
Aloowance for director’s bonuses
Other current liabilities

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

4,208,104
260,000
400,000
375,396
158,060
247,038
80,7033
959,682

12,298,989

6,688,983－

1,600,000

Fixed assets
Tangible fixed assets

Total investments and other fixed assets
Total fixed assets
Deferred assets

Total current liabilities
Fixed liabilities
Bond6

(Unaudited)

Long-term debt
Allowance for employee’s retirement stock benefit
Allowance for director’s retirement benefit
Allowance for director’s retirement stock benefit
Allowance for environmental measures

536,477
9,804
54,75820,64023,813

254,930
17,39658,88331,123
18,463Net defined benefit liability
Other fixed liabilities

829,319
2,443,694

845,629
1,781,685

Total fixed liabilities

3,918,507

4,608,111

Total liabilities

16,217,496

11,297,095

Net Assets
Shareholders' equity
CapitalCapital surplus
Retained earnings
Treasury stock

3,532,492
3,498,724
22,436,316△956,696

3,532,492
3,498,724
23,246,303△1,230,960

28,510,835

29,046,559

1,625,548△1,069△514,664
1,403,231
89,7391,158,112△4,959△1,248,176△323,046
65,7172,602,789△352,353

Stock acquisition right－

8,618

Non-controlling interests－－

Total net assets

31,113,622

28,702,824

Total liabilities and net assets

47,331,118

39,999,919

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 income7

(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 throughAugust 31, 2015)
Thousands of yen
32,353,384
24,068,955

FY 2016(December 1, 2015 throughAugust 31, 2016)
Thousands of yen
29,221,515
21,553,440

Gross profit

8,284,429

7,668,075

Total selling, general and administrative expense

7,047,637

6,696,191

Operating Income1,236,792

971,883

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

19,97866,04757,52959,77824,37280,23817,80057,87958,381―
43,51930,534

Total non-operating income

307,944

208,115

17,00068,354

12,59865,177―

235,507

Others non-operating expense

61,97879,180Total non-operating expense

147,334

392,463

1,397,402

787,535

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

236,762
76,953―

7,365
24,254
15,903

Total extra ordinary income

313,716

47,523Extra ordinary loss
Loss on disposal of fixed assets
Loss on sales of fixed assets
Loss on liquidation affiliates

3,034
9,411
322,950

11,644
2,025―

Total extra ordinary loss

335,396

13,6691,375,722

821,389

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

570,183
8,339

514,119△191,611

Total income taxes

578,522322,507

Net income

797,199

498,881Non-operating expenses
Interest paid
Cash discount on sales
Exchange Loss

Ordinary Income

Net income before taxes and other adjustment

Other comprehensive income8(Unaudited)

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

483,659
1,734△467,436△3,890

Revaluation on Land76,556

20,0501,220,054△23,103
1,758,902
2,556,101△1,726,278△24,021△2,201,576△1,702,695

2,556,101△1,702,695――

Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attribute to owners ofparent
Comprehensiveincome
attributetothenon-controlling interests

9(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.
[Segment Information]
1. The Third Quarter of FY 2015 (December 1, 2014 through August 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
20,792,334
6,325,769
5,235,280 32,353,384－ 32,353,384
Inter segment sales and1,903,416
1,718,384
71,7283,693,529 △3,693,529－
transfer
Total
22,695,751
8,044,153
5,307,009 36,046,914 △3,693,529 32,353,384
Segment income
834,005
323,023
385,554
1,542,583
1,236,792△305,791(Notes)1. Adjustment of △¥305,791 thousand includes △¥255,648 thousand -corporate expenses that are not distributed toeach reportable segment and other △¥50,142 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 Third Quarter of FY 2016 (December 1, 2015 through August 31, 2016)
The information on net sales, income or loss, assets and other items by reportable segment

Japan

Reportable Segment
Asia
EU and USTotal(Thousands of yen)
Adjustment Consolidate(Note 1)
dStatement
Amount(Note 2)

Net Sales
Sales to external customers
20,344,393
4,769,977
4,107,143 29,221,515－ 29,221,515
Inter segment sales and1,747,294
1,385,063
41,692
3,174,050 △3,174,050－transferTotal
22,091,688
6,155,041
4,148,836 32,395,566 △3,174,050 29,221,515
Segment income
680,640
260,891
230,358
1,171,889
971,883△200,006(Notes)
1. Adjustment of △¥200,006 thousand includes △¥237,378 thousand-corporate expenses that are not distributed toeach reportable segment and other △¥37,372 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.

10