(Unaudited)

April 11, 2018
MORITO CO., LTD.
Financial Statement (Unaudited)
For the First Quarter of the Fiscal Year ended November 30, 2018
(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 13, 2018
NoneNone(Amounts rounded down)
1. Consolidated Financial Results for the First Quarter of the Fiscal Year 2018(December 1, 2017 throughFebruary 28, 2018)(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 201810,082
5.3
359
30.1
311
4.7
235
32.7
1Q of FY 2017
9,577 △4.4
276 △14.3
297
19.9
177
55.2
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 : 298 million yen (△80.7%) (1Q of FY 2018)

1Q of FY 2018
1Q of FY 2017

Net income
Per share
Yen
8.55
6.31

1,549 million yen ( -%)(1Q of FY 2017)

Fully diluted net
Income per share
Yen
8.53－(2) Consolidated Financial Position
Total assets
Millions of yen
1Q of FY 2018
43,569FY 2017
43,473

Net assets
Millions of yen
32,52632,615(Reference) Equity capital : 32,487 million yen (1Q of FY 2018)

Equity ratio%
74.6
74.9
32,581 million yen (FY 2017)

2. DividendsFirstquarter-end
Yen

Dividends per share
SecondThird
Fiscalquarter-end
quarter-end
year-end
Yen
Yen
Yen
14.00
14.00

FY 2017
FY 2018
FY 2018
12.50
12.50(Forecast)(Note) Revisions of dividend forecast to the latest announcement: None1

Annual
Yen
28.00
25.00

(Unaudited)

3. Consolidated Forecast for FY 2018 (December 1, 2017 through November 30, 2018)(Percentages represent changes from corresponding period of previous year)
Net Sales
Millions ofyen

Full year

44,000Ordinary profit

Operating income%
6.3

Millions ofyen

2,000Millions ofyen%
17.1

1,900%
11.5Net income
per shareNet income
Millions ofyen

1,300%△60.7Yen47.27*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, 2018)30,800,000 shares(as of November 30, 2017)(ii) Number of shares of treasury stock at end of period:
3,300,000 shares(as of February 28, 2018)
3,300,100 shares(as of November 30, 2017)(iii) Average outstanding number of shares during the period:
27,500,000 shares(the 1Q of FY2017)28,089,867 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 ...................................52. 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(4) Additional Information.......................................................................................................................................53. 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[Segment Information] .............................................................................................................................................10(4) Significant Subsequent Events ......................................................................................................................11[Acquisition ownership of a corporate] ....................................................................................................................113

(Unaudited)

1. Qualitative Information for the Period under Review(1) Overview of Business Performance
In the first quarter (From 1st December, 2017 to 28th February, 2018) of the fiscal year ended November 30th,2018 (From 1st December, 2017 to 30th November, 2018), the Japanese economy has shown signs of gradual
recovery by improving employment situation and capital investment because corporate performance hascontinued stable.
In the global economy, although the improving economic in the U.S. was progressing, the uncertain situation
continued due to the uncertainty of overseas economies and instability of raw material prices, and increase of
uncertain international circumstances in Asia.
In such a situation, our group is accelerating a growth strategy by the development of value-added Japanese
items, expansion of a global sales channel under the 7th mid-term management plan, and will promote therealization of value creation which the era seeks, expand our business in not only existing market such ASEAN,china, western, but also in untapped market.
As a result, in the current quarterly performance reaches net sales ¥10,082 million (increased by 5.3% from ayear earlier), operating income ¥359 million (increased by 30.1% from a year earlier), ordinary income ¥311
million (increased by 4.7% from a year earlier), net income ¥235 million (increased by 32.7% 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

1Q Oct-Dec
112.98 (109.43)
133.01 (117.86)
17.08 (15.99)
14.47 (14.11)
3.75 (3.45)
0.0050 (0.0048)
3.43 (3.09)*() is the exchange rate of the 1st quarter of FY2017.
Segment information as below[Japan]As for the apparel division, sales of the accessories for sports apparel manufacturer was decreased, however
sales of the accessories for uniform/working wear and mass retailer were increased.
In the consumer product division, sales of accessories for health-related items such as medical supporters,
sales of accessories for shoes, and sales of products for footwear-related, hardware store/working wear store,retailers and automobile interior components were increased.
As a result, net sales were ¥6,949 million (increased by 5.7% from a year earlier).
[Asia]
As for the apparel division, sales of the accessories for Japanese apparel manufacturers in Shanghai andEU/the US apparel manufacturers in Hong Kong were increased.
In the consumer product division, sales of the automobile interior component for Japanese auto makers inShanghai were increased, however sales of accessories for video equipment in Hong Kong and Thailand weredecreased.
As a result, net sales were ¥1,687 million (decreased by 4.3% from a year earlier).
[Europe and the U.S.]
As for the apparel division, sales of the accessories in EU and the US were increased.
In the consumer product division, sales of automobile interior component for Japanese auto makers in Europe
was the same as 1st quarter of previous year, however sales of automobile interior component for Japanese
auto maker in the US was increased.
As a result, net sales were ¥1,446 million (increased by 16.6% from a year earlier).
4

(Unaudited)(2) Forecast of Consolidated Business Results and other Forward-looking Informantion
Currently, there has been no change in the consolidated forecast of FY2018 which was announced in 12 thJanuary, 2018.

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
Not applicable(4) Additional Information

Not applicable5

(Unaudited)

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets
FY 2017(As of November 30, 2017)
Thousands of yen

FY 2018(As of Februry 28, 2018)
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

12,235,61310,797,872
4,305,396
730,080△35,215
28,033,747

11,100,612
10,632,027
4,998,441
603,917△32,605
27,302,392

Land
Other tangible fixed assets
Total tangible fixed assets
Intangible fixed assets

2,526,981
3,356,661
5,883,643

2,527,151
4,224,824
6,751,976

Goodwill
Other Intangible fixed assets
Total intangible fixed assets
Investments and other fixed assets

2,728,172
1,276,348
4,004,521

2,690,547
1,249,493
3,940,041

Investment securities
Net defined benefit asset
Other fixed assets
Allowance for doubtful accountTotal investments and other fixed assets
Total fixed assets

4,551,840
289,728
765,704△70,037
5,537,236
15,425,400
14,00443,473,152

4,589,758
290,116
756,731△74,159
5,562,447
16,254,464
12,953
43,569,810

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

4,317,325
50,000400,000
161,081481,935
208,130
66,7991,266,606
6,951,879

4,682,502
50,000400,000
78,066
123,944
200,102
29,732
1,022,819
6,587,166

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

1,000,000－24,761
41,08351,552
20,217
916,630
1,851,890
3,906,135
10,858,014

1,000,000
639,166
23,98042,283
56,424
20,272913,058
1,761,273
4,456,458
11,043,625

Deferred assets
Total assets
Liabilities
Current liabilities

6

(Unaudited)
FY 2017(As of November 30, 2017)
Thousands of yen

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

73,532,492
3,498,724
24,713,167△2,122,115
29,622,267

3,532,492
3,498,724
24,555,502△2,122,076
29,464,642

1,577,017△1,203621,625
789,883△28,1102,959,211
33,658－32,615,138
43,473,152

1,552,315△862
621,625
876,496△26,604
3,022,970
38,572－32,526,185
43,569,810

(Unaudited)(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income
The First Quarter accounting period
FY 2017
FY 2018(December 1, 2016 through (December 1, 2017 throughFebrury 28, 2017)
Februry 28, 2018)
Thousands of yen
Thousands of yen
Net sales
Cost of sales
Gross profit

9,577,100
7,039,032
2,538,067

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

Total selling, general and administrative expense
Operating Income
Non-operating income

2,261,904
276,1632,348,692
359,156

Interest received
Dividends received
Rent on real estate
Foreign exchange gainsEquity in earnings of affiliates
Subsidy income
Other non-operating income
Total non-operating income
Non-operating expenses

5,047
6,704
12,85027,984
11,019－12,82376,4306,094
6,608
10,048－
10,463
12,7792,535
48,530Interest paid
Cash discount on sales
Foreign Exchange Loss
Others non-operating expense
Total non-operating expense
Ordinary Income
Extra ordinary income

2,242
21,264－31,30754,814
297,779760
19,78653,99821,437
95,983
311,702

Gains on sales of fixed assets
Total extra ordinary income
Extra ordinary loss

299
299

126
126

Loss on sales of fixed assets
Loss on disposal of fixed assets
Loss of business restructuring
Loss on golf membership rights
Total extra ordinary loss
Net income before taxes and other adjustment

2,473
576
－
700
3,749
294,329

34
2,829
4,782
－
7,646
304,182

Corporate, inhabitant and business taxes
Adjustments to corporate and other taxes
Total income taxes
Net income

109,734
7,318
117,052
177,276

140,517△71,51469,003
235,179

Profit(Loss) attributable to non-controlling interests
Profit(Loss) attributable to owners of parent－
177,276－
235,1798

(Unaudited)

Quarterly Consolidated Statements of Comprehensive Income
The First Quarter accounting period

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

9FY 2017(December 1, 2016 throughFebrury 28, 2017)
Thousands of yen

FY 2018(December 1, 2017 throughFebrury 28, 2018)
Thousands of yen

177,276

235,179△33,384△1,475
1,402,233
5,172－
1,372,544
1,549,821△24,701
335
86,612
1,506
563,758298,937

1,549,821－

298,937－

(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 First quarter of FY 2017 (December 1, 2016 through February 28, 2017)(1) 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

6,574,279

1,762,626

1,240,194

9,577,100－

9,577,100

477,412627,843

20,0901,125,346△1,125,346－

7,051,692
274,226

2,390,470
86,8681,260,285△4,00910,702,447
357,085△1,125,346△80,922

9,577,100
276,163(Notes)1. Adjustment of △80,922 thousand yen includes △77,948 thousand yen-corporate expenses that are notdistributed to each reportable segment and other △2,974 thousand yen.
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 2017 (December 1, 2017 through February 28, 2018)(1) 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.

10

(Unaudited)(4) Significant Subsequent Events[Acquisition ownership of a corporate]
thThe Board of Directors of Morito Co., Ltd. at its meeting held on March 15 , 2018 has decided on acquiring allcommon shares and classified shares of Maneuverline Inc. (“the Company”), and entered into a Share Transfer

Agreement on that day.
In addition, on April 2, 2018, we acquired all the shares of the Company make it to a subsidiary.
1. Name and business description of the Company
Maneuverline Inc.
① Name of the Company
17-8, Koen-minami Yada 1-choume, Higashi② Address
Sumiyoshi-ku, Osaka city, Osaka
NameandTitle
ofrepresentative
CEO Masahide Kawasaki③
Import and sell of goods for Marine leisure,④ Business description
Snowboarding, and apparel related
2,758 million yen⑤ Net Revenue(FY2017 as of January 31th, 2017)
NetAssets
2,427 million yen (as of January 31th, 2017)⑥3,621 million yen (as of January 31th, 2017) ,⑦ Total Assets
2. Purpose of stock acquisition
Morito Group has been steadily developing business so far with its basic policy of management specializing inapparel-related accessories for clothing and footwear, and consumer products for personal belongings.
We position M&A as one of the priority measures under the 7th mid-term management plan. Our target of M&A isthat the business of the target company are within the scope of our organic business area or its surrounding area,a niche top, its stability, and some synergies with our business.
On the other hand, although the Company is maintaining a very stable achievement in the wholesale industry as
a top runner in importing and selling marine leisure, snowboards, apparel supplies, etc., the Company washeirless. Then, as a result of these, the speculation of two companies matched.
In addition, we anticipate the synergy of switching accessories used for products that the Company purchasesfrom third-party to our core products such as metal accessories and magic-tape®, or of an increase opportunities
for sales at each other's sales channels.
3. Our group expansion of a global sales channel under
Masahide Kawasaki, Employee shareholding association of the Company
4. The date of stock acquisition
April 2nd, 2018
5. The number of acquiring stocks, acquisition cost and equity ratio after acquisition
Common stock150① The number of acquiring stocks
Classified stock
50(share with restricted voting right)
Common stock
2,962 million yen② Acquisition cost(*excluding 30 million yen for advisory fee) Classified stock
580 million yen
100%③ Equity ratio after acquisition
6. Procurement method of payment fundSelf-funded11