Morito Co., Ltd.
Prime Market of TSE: 9837

Presentation Materials for the Fiscal Year Ended
November 30, 2022, Financial Results
January 2023

© 2022 MORITO CO., LTD.

CONTENTS© 2022 MORITO CO., LTD.

1

Company Profile

2

Medium- and Long-term Policy

3Partial Changes to the 8th Mid-termManagement Plan

4

FY 2022.11 Financial Results

5

FY 2022.11 Business Overview

6

FY 2023.11 Full-Year Forecast

7

Business Topics

8

Shareholder Returns

1

CONTENTS

1
2
3
4

Company Profile

5
6
7
8

© 2022 MORITO CO., LTD.

2

1

Morito Group Values

Founding Principles

Active and Steadfast
Corporate Principle

DESIGN YOUR BRIGHT FUTURE WITH OUR VARIOUS
PARTS.
Corporate Vision

Create Morito’s existence value,
Realize “New Morito Group”© 2022 MORITO CO., LTD.

3

1

Company Profile● Founded in 1908
･ Began operating in Osaka as a broker of eyelets and hooks･ Later expanded operations mainly for sales of MAGIC TAPE®
and other clothing accessories, automotive interior
components, etc.

● Trading company with manufacturingfunctions･ A specialized trading company that handles everything fromplanning and development to manufacturing, wholesale, anddistribution･ Operating 17 locations around the world● Operating three businesses･ Apparel, product, and transportation businesses form the coreof our operations･ Ratio between in-house production and procurement is 3:7

4

Eyelets

Hooks

MAGIC TAPE®

*Eyelet: A metal ring attached to a hole inshoes, clothing, etc. through which a lace orcord is threaded

1Operations by BusinessApparel Business

Product Business<Examples of products handled><Examples of products handled>

Hooks

MAGIC TAPE®

Buttons

Tape

Eyelets andshoelaces

In-housebrandsMAGIC TAPE®

StrapsTransportation Business<Examples of products handled>

Resin parts

Insoles

Skateboards,
snowboards,
and surfboards

In-housebrandsHooks

MAGIC TAPE®

Nets

Emblems

Trunk floor
liningDoor
armrests<Applications>Casual wear/shoes<Applications><Applications>

Insoles and shoe care productsSportswear/shoes

Video equipment-related products such as
camera and PC cases, braces andsupports, safety products, teaching tools
and stationery

Automotive interior
components

Working wear/shoes
Medical wear, baby wear
Formal wear/shoes, bags

Skateboards, surfboards, etc.
Active sports products© 2022 MORITO CO., LTD.

5

Railway and Shinkanseninterior components
Aircraft interior components

1

Morito’s Strengths● Three core businesses ensure stable performance
Operating three core businesses focused on apparel, products, and transportation, we
have maintained a stable financial performance without falling into the red despite theimpact of the oil crisis, the 2008 financial crisis, and the COVID-19 pandemic.

● Enjoying high market share for various products
Many products dominate the market in their respective industry.
We have the top market share for metal hooks in Japan, and the highest or secondhighest in the world.

● Global network
In addition to our own locations, we have partner plants and distributors all over the world,
enabling us to be there for the customer whenever they need anything.

© 2022 MORITO CO., LTD.

6

CONTENTS

1
2
3
4

Medium- and Long-term Policy

5
6
7
8

© 2022 MORITO CO., LTD.

7

2

Past Efforts to Become a “Global Niche Top Company”

Expanding lines of products andrange of customer industries

Eyelets,
hooks, andshoelaces© 2022 MORITO CO., LTD.

MAGIC
TAPE®

Entering the B2C
marketStrengthening high-valueadded products

Handling of all
ranges of apparelaccessories

Handling andOEM of apparelproducts

Launch of inhouse luxury
brand,
52BYHIKARU
MATSUMURA

Development
and sales ofenvironmentallyfriendly products

ApparelBusiness

Handling of shoecare products

OEM and ODMof products
related to healthand video
devices

Launch of inhouse shoe care,
support, and bagbrandsDevelopment
and sales ofenvironmentallyfriendly products

Product
Business

Handling ofmaterials for car
mats

Handling of
automotive
componentmaterials

Handling of
Shinkanseninterior
components

Handling of
automotive
interior
components(lining materials)

Transport
ation
Business

8

2

Past Efforts to Become a “Global Niche Top Company”

Building global
network

Sales andprocurement

Hong Kong, USA, Netherlands, Taiwan, China (Shanghai),Thailand, Myanmar, Mexico

Manufacturing

China (Shenzhen), USA (Georgia), Vietnam

M&A

Scovill (USA), Matex (Japan), Maneuverline (Japan)･ Establishing a global quality assurance system

Enhancingprofitability･ Establishing an in-house logistics center･ Transitioning to a holding company structure･ Splitting operating company, Morito Japan

Strengthening
management
system© 2022 MORITO CO., LTD.

･ Diversity and work style reform･ Personnel strategies, including hiring mid-career workers

92

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

Business strategies

8th Mid-termManagement
Plan
Corporate strategies• Enter the B2C market and step up efforts• Gain top global market share across all markets• Localize management, manufacturing, and procurement, and establish
new locations• Make capital investments in manufacturing companies and increase
their production efficiency• Sign M&A deals• High-value-added products (safety, health, and environmental initiatives)• Leverage IT to support manufacturing, business, and sales activities• Strengthen management of operations and procurement to build a soundfinancial structure and improve capital efficiency• Operate the company with SDGs in mind

Building a business

2020–2021

structure to adapt to the
COVID-19 pandemic© 2022 MORITO CO., LTD.

•Streamline costs•Enhance profitability•Streamline unprofitable businesses

10CONTENTS

1
2
3
4

5

Partial Changes to the 8th
Mid-term Management Plan

67
8

© 2022 MORITO CO., LTD.

11

3Partial Changes to the 8th Mid-term Management Plan
(Running through FY 2026)

Background

June 2019 Transitioned to a holding company structure
June 2022 Split the largest operating company, Morito Japan

Completed reorganization
Holding company (Morito Co., Ltd.) takes the leadin maximizing Group value, establishingsustainable management practices andstrengthening management systems© 2022 MORITO CO., LTD.

12

3Partial Changes to the 8th Mid-term Management Plan
(Running through FY 2026)

Key Changes

1. Formulated a sustainability policy▶ Click here for our sustainability site

2. Revised capital policy
Build a stable and well-balanced financial capital structure in order to procure and manage
funds necessary for corporate activities in a stable and efficient manner over the long run

Strategies(1) Improve medium- to long-term capital efficiency (ROE) → Adopt efficient management practices(2) Add stability to the performance-based capital return to shareholders → Distribute profits appropriately(3) Improve asset efficiency → Streamline balance sheet, create cash flows, and actively invest funds(4) Optimize capital structure → Utilize financial leverage© 2022 MORITO CO., LTD.

13

3Partial Changes to the 8th Mid-term Management Plan
(Running through FY 2026)

Key Changes
3. Change in shareholder return policy
Determine based on the Basic Dividend Policy below, taking into consideration
investment projects and financial conditions (beginning in FY 2023)- Realize stable and continuous dividend payments- Dividend payout ratio of 50% or more on a consolidated basis in relation to
profit attributable to owners of parent- Dividend on equity (DOE) ratio target of 4% on a consolidated basis
However, in a fiscal year with a significant fluctuation in after-tax profit attributable toowners of parent due to special factors such as extraordinary income or losses, thedividend amount will be determined in light of the corresponding impact.

© 2022 MORITO CO., LTD.

14

3Partial Changes to the 8th Mid-term Management Plan
(Running through FY 2026)

Set FY2022–FY2026 quantitative targets for net sales and operating profit at 50,000
million JPY and 2,500 million JPY respectively*If both net sales and operating profit reach the target figures early, revise them.
(Million JPY)
Net sales

50,00050,000Operating profit

48,47843,636

41,3884,000

Quantitative targets for
FY 2026
Consolidated net sales:
50 billion yen
Consolidated operating
profit: 2.5 billion yen

45,98743,94350,0003,000

40,72740,08640,000

2,000

2,116

1,767

1,707

1,725

1,734

2,500

2,300

1,000

1,619

8th Mid-term Management Plan (5 years)856

30,000

0
2016

2017

2018

2019

2020

2021

2022

2023
Forecast© 2022 MORITO CO., LTD.

15

2024

2025

2026
Plan

CONTENTS

12
3
4

FY 2022.11 Financial Results

5
6
7
8

© 2022 MORITO CO., LTD.

16

4

FY 2022 Highlights● Remained affected by automakers’ production cutbacks due tosemiconductor shortages, soaring raw material prices, delays in overseas
transportation, and rising transportation costs● Strong sales of accessories and products with superior functionality, including
medical wear, working wear, and sports related products● Continued to cut back on transportation and other expenses● Full-year net sales and ordinary profit reached record highs© 2022 MORITO CO., LTD.

17

4

FY 2022 Summary of Financial Results(Million JPY)

FY 2021© 2022 MORITO CO., LTD.

FY 2022

Increase/Decrease

Y/Y

Net sales

43,636

48,478+4,842+11.1%

Gross profit

11,401

12,487+1,086+9.5%

Gross profit ratio

26.1%

25.8%

Cost

9,781

10,370

+589

+6.0%

Cost ratio

22.4%

21.4%

Operating profit

1,619

2,116

+497

+30.7%

Operating profit ratio

3.7%

4.4%

Ordinary profit

1,834

2,342

+508

+27.7%

Ordinary profit ratio

4.2%

4.8%

Net income

1,407

1,674

+267

+19.0%Net income ratio

3.2%

3.5%

18

4

FY 2022 Net Sales
Net sales: 48,478 million JPY
Y/Y: +4,842 million JPY (+11.1%)
Although the transportation business has been affected by the semiconductor
shortage, the apparel business has grown in Japan and overseas. Full-year net
sales hit a record high.
(Million JPY)

Japan

33,516 million JPY

Y/Y: +3,287 million JPY (+10.9%)

Asia

8,340 million JPY

Y/Y: +286 million JPY (+3.6%)

48,47843,636

Europe & the U.S.

6,621 million JPY

Y/Y: +1,268 million JPY (+23.7%)2021© 2022 MORITO CO., LTD.

2022

19

4

FY 2022 Quarterly Financial Trends
The overall apparel and product businesses saw demand recover in the second
fiscal half due to the shift to the “living with COVID-19” policy.
(Million JPY)
14,00013,00012,00011,00010,000
9,000
8000
7,000
6,000
5,000
1Q

2Q

3Q

2018

© 2022 MORITO CO., LTD.

4Q

1Q

2Q

3Q

4Q

1Q

2Q

2019

3Q

2020

20

4Q

1Q

2Q

3Q

2021

4Q

1Q

2Q

3Q

2022

4Q

4

FY 2022 Gross Profit

Gross profit: 12,487 million JPY
Increased due to higher sales.

Y/Y: +1,086 million JPY (+9.5%)(Million JPY)

FY 2021

FY 2022

Increase/
Decrease

Net sales

43,636

48,478+4,842+11.1%

Gross profit

11,401

12,487+1,086+9.5%

Gross profit
ratio

26.1%

25.8%

Cost

9,781

10,370

+589

+6.0%

1,619

2,116

+497

+30.7%

1,834

2,342

+508

+27.7%

1,407

1,674

+267

+19.0%

Y/Y

12,487
11,401

OperatingprofitOrdinary
profit2021© 2022 MORITO CO., LTD.

2022

Net income21

4

FY 2022 Trends in Net Sales & Gross Profit Ratio

The gross profit ratio was about the same as it was last year due to soaring raw
material prices and an increase in purchase prices caused by the weaker yen.
(Million JPY)
Full-year:
Total Net Sales

60,000Gross profit ratio

30.0%

50,00028.0%

40,00026.0%
30,00024.0%

20,00022.0%

10,0000© 2022 MORITO CO., LTD.

2013

2014

2015

2016

2017

2018

22

2019

2020

2021

2022

20.0%

4

FY 2022 Operating Profit

Operating profit: 2,116 million JPY Y/Y: +497 million JPY (+30.7%)
Increase in gross profit ratio, decrease in cost ratio.
(Million JPY)

1,619

2021

© 2022 MORITO CO., LTD.

2,116

2022

Increase/
Decrease

FY 2021

FY 2022Net sales

43,636

48,478+4,842+11.1%

Gross profit

11,401

12,487+1,086+9.5%

Gross profit
ratio

26.1%

25.8%

Cost

9,781

10,370

+589

+6.0%

Cost ratio

22.4%

21.4%

Operating profit

1,619

2,116

+497

+30.7%

Operatingprofit ratio

3.7%

4.4%

Ordinary profit

1,834

2,342

+508

+27.7%Net income

1,407

1,674

+267

+19.0%

23

Y/Y

4

FY 2022 Ordinary Profit

Y/Y: +508 million JPY (+27.7%)

Ordinary Profit: 2,342 million JPY
Increase in operating profit(Million JPY)

FY 2021

FY 2022

Increase/
Decrease

Y/Y
1000

Net sales

43,636

48,478+4,842+11.1%

Gross profit

11,401

12,487+1,086

+9.5%

Cost

9,781

10,370

+589

+6.0%

OperatingprofitOperatingprofit ratio

1,619

2,116

+497

+30.7%

3.7%

4.4%

Ordinary profit

1,834

2,342

Ordinary profit
ratio

4.2%

4.8%

800

2,342
1,834

0

© 2022 MORITO CO., LTD.

2009
2021

2010

2011 2012
2022

2015

2016

Net income
ratio

3.2%

24

400

+508

+27.7%
200

1,407
2017

Net income

2014

600

2018

1,674
2019 2020
3.5%

+267

2021

2022

0
+19.0%

4

FY 2022 Net Income

Net Income: 1,674 million JPY
Increase in ordinary profit

Y/Y: +267 million JPY (+19.0%)(Million JPY)

1,674
1,407

2021

© 2022 MORITO CO., LTD.

2022

FY 2021

FY 2022

Increase/
Decrease

Net sales

43,636

48,478+4,842+11.1%

Gross profit

11,401

12,487+1,086

+9.5%

Cost

9,781

10,370

+589

+6.0%

1,619

2,116

+497

+30.7%

1,834

2,342

+508

+27.7%

4.2%

4.8%

Net income

1,407

1,674

+267

+19.0%Net income
ratio

3.2%

3.5%

OperatingprofitOrdinary
profitOrdinary
profit ratio

25

Y/Y

4

FY 2022 Balance Sheet

2021 4Q

2022 4Q

2021 4Q

Assets2022 4Q

Liabilities
Current liabilities

7,507

Fixed liabilities

4,515

9,309
(+1,802)

Current assets

26,95730,481

4,278(-237)(+3,524)

Total liabilities

12,023

13,587(+1,564)

Net assets

Fixed assets

18,98019,790(+810)

Shareholders’ equity

31,477

Other
comprehensive
income

2,381

4,768

Total net assets

33,91436,684

31,860(+383)(+2,387)(+2,770)

Total assets

45,93850,271

Total liabilities andnet assets(+4,333)

45,93850,271(+4,333)

Equity ratio 72.9% (FY2021 4Q 73.7%)© 2022 MORITO CO., LTD.

26

4

FY 2022 Consolidated Cash Flow Statement(Million JPY)

2021 4Q
Cash and cash equivalents at beginning of
period10,052

11,020Cash flows from operating activities

2,644

850

Cash flows from investing activities

(401)

(135)

Cash flows from financing activities(1,380)(1,916)

106

577

968

(623)

-

-

-

-

11,020

10,396

Effect of exchange rate change on cash andcash equivalents
Net increase (decrease) in cash and cash
equivalents
Increase in cash and cash equivalents resulting
from inclusion of subsidiaries in consolidation
Decrease in cash and cash equivalents resulting
from exclusion of subsidiaries from consolidation
Cash and cash equivalents at end of period© 2022 MORITO CO., LTD.

2022 4Q

27

CONTENTS

1

2
3
4

FY 2022.11 Business Overview

5
6

7
8

© 2022 MORITO CO., LTD.

28

5

FY 2022 Net Sales by Region(Million JPY)

Japan

30,229Asia

Europe & the U.S.

33,516
8,340

8,054

5,353

2021

Y/Y

© 2022 MORITO CO., LTD.

2022

+3,287 million JPY(+10.9%)

2022

2021

Y/Y

+286 million JPY(+3.6%)

29

2021

Y/Y

6,621

2022

+1,268 million JPY(+23.7%)

5

FY 2022 Net Sales by Region (Japan)

The apparel division has remained firm. In the transportation business, sales of interior
components for Japanese automakers’ facelift models were strong despite ongoingsemiconductor shortages.
(Million JPY)

● Increase in accessories for working
wear and medical wear sold in Europe
and the U.S.
● Increase in accessories for casual wear
● Increase in accessories for sportswear
and athletic shoes● Increase in medical device-related
products● Increase in products for one-coin shops● Increase in construction safety products● Increase in snowboarding, surfing, andoutdoor products● Increase in automotive interior
components© 2022 MORITO CO., LTD.

10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
1Q

2Q

3Q 4Q

2019

30

1Q

2Q

3Q

2020

4Q 1Q

2Q

3Q 4Q

2021

1Q

2Q

3Q 4Q

2022

5

FY 2022 Net Sales by Region (Asia)

Apparel business remained upbeat in China and Hong Kong.
The Transportation Division saw a decrease in sales due to adjustments resulting
from production transfers between manufacturers’ plants.
(Million JPY)
● Decrease in automotive interior
components to Japanese
automotive manufacturers in China● In China and Hong Kong increase inaccessories for working wear sold in
Europe and the U.S.
● Increase in accessories for casual wear
in China and Hong Kong
● Increase in accessories for athletic
shoes in Vietnam© 2022 MORITO CO., LTD.

2,500

2,000

1,500

1,000

500

0
1Q

2Q 3Q

2019

31

4Q

1Q

2Q 3Q 4Q

2020

1Q

2Q

3Q 4Q

2021

1Q 2Q 3Q

2022

4Q

5

FY 2022 Net Sales by Region (Europe & the U.S.)

The Apparel Division has remained firm, such as in working wear and casual wear.
Semiconductor shortages have continued to affect the Transportation Division.
(Million JPY)
2,000
1,800

● Increase in accessories for working
wear

1,600

● Increase in accessories for casual wear

1,200

● Increase in accessories for high-end
down wear

1,000● Decrease in automotive interior
components to Japanese automotive
manufacturers

1,400

800
600
400
200
0
1Q

2Q

3Q 4Q

2019

© 2022 MORITO CO., LTD.

32

1Q

2Q

3Q 4Q

2020

1Q

2Q

3Q 4Q

2021

1Q 2Q 3Q 4Q

2022

5

FY 2022 Net Sales by Region (Quarterly)(Million JPY)

FY 2022
Full year

Composition

Increase/
Decrease

9,377

33,516

69.1%+3,287+10,9%

2,180

2,063

8,340

17.2%

+286

+3.6%

1,885

1,755

1,866

6,621

13.7%

+1,268+23.7%

11,646

11,965

13,306

48,478100.0%+4,842+11.1%

Full year

Composition

Increase/
Decrease

1Q

2Q

3Q

4Q

Japan

7,912

8,196

8,031

Asia

2,212

1,885

Europe &the U.S.

1,436

Total

11,561Y/Y

FY 2021
1Q

2Q

3Q

4Q

Japan

7,347

7,291

7,329

8,262

30,22969.3%+1,419

+4.9%

Asia

2,083

1,996

1,884

2,091

8,054

18.5%

+829

+11.5%

Europe &the U.S.

1,198

1,309

1,364

1,482

5,353

12.3%

+662

+14.1%

Total

10,62910,596

10,577

11,834

43,636100.0%+2,909+7.1%© 2022 MORITO CO., LTD.

33

Y/Y

5

FY 2022 Sales Composition by Region<2021 4Q>

<2022 4Q>

Europe &the U.S.
12%

Europe &the U.S.
14%

Asia
19%

Asia
17%

Japan
69%

Japan
69%

© 2022 MORITO CO., LTD.

34

5

FY 2022 Sales Composition by Region & Business<2021 4Q>
Europe &the U.S.
13%

Asia
4%

Europe &the U.S.
14%

Asia
38%
Japan
56%

Japan
49% Transportation
18%

Asia
4%

Japan
61%

Asia
25%

Japan
96%

Japan
51%

Transportation
16%

Apparel46%
Product
36%© 2022 MORITO CO., LTD.

<2022 4Q>

Apparel47%
Product
37%

Asia
22%
Japan
96%

Europe &the U.S.
22%

35

Asia
25%

Europe &the U.S.
24%

CONTENTS

12
3
4

FY 2023.11 Full-Year Forecast

5
6
7
8

© 2022 MORITO CO., LTD.

36

6

FY 2023 Full-Year Forecast

FY 2022© 2022 MORITO CO., LTD.

FY 2023 FullYear Forecast

Increase/
Decrease

Y/Y

Net sales

48,47850,000+1,522

3.1%

Operating profit

2,116

2,300

+184

8.7%

Operating profit ratio

4.4%

4.6%

Ordinary profit

2,342

2,450

+108

4.6%

Ordinary profit ratio

4.8%

4.9%

Net income

1,674

1,800

+126

7.5%

Net income ratio

3.5%

3.6%

37

6

FY 2023 Forecasted Trends in Net Sales & Gross Profit Ratio
In fiscal 2022, we saw increases in import costs due to the depreciation of the yen as
well as cost increases due to difficulties in procuring raw materials, mainly in the
United States, but the situation is expected to improve in fiscal 2023.
(Million JPY)
Full-year:
Total Net Sales

60,00030.0%

Gross profit ratio

50,00028.0%

40,00026.0%
30,00024.0%

20,00022.0%

10,0000© 2022 MORITO CO., LTD.

2013

2014

2015

2016

2017

2018

38

2019

2020

2021

2022

20.0%
2023 forecast

CONTENTS

1
2
3
4

Business Topics

5
6
7
8

© 2022 MORITO CO., LTD.

39

7

Corporate Brand Renewal(Background)
Split of Morito Japan, the largest operating company in the Morito Group→ Respond to any changes in the environment and operate the company
according to the needs of each market

Morito Japan
Co., Ltd.

MoritoJapan Co.,Ltd.

ApparelBusiness

Transport
ation
Business© 2022 MORITO CO., LTD.

After the company split

Product
Business

Morito ApparelCo., Ltd.

Morito AutoParts Co., Ltd.

40

Specializing in the business related
to products found in our daily lives,
including semi-finished and finishedproducts that make use of parts

Specializing in apparel-related
products, such as accessories

Specializing in transportationequipment-related products,
such as automotive interior
components

7

Corporate Brand Renewal
The Morito Group adopted a new tagline and revised logo as it laid thefoundation for its new corporate structure.
We plan to continue our present use of the new logo and tagline in PR activities
as we move forward.

Morito is an official sponsor of the Chiba Lotte Marines.

We became an official sponsor of the Chiba Lotte Marinesand placed advertisements in ZOZO Marine Stadium.

Click here to watch a video all about the Morito Group.

© 2022 MORITO CO., LTD.

41

7

“Rideeco” Environmental Initiative“Rideeco” means “RIDE FOR ECO,” and “RIDE” stands for the Morito Group’s renewed
commitment. We will implement initiatives aimed at realizing a sustainable society bycooperating not only with each other but also with people from different businesses andindustries. We have also achieved many unprecedented results, such as having ourenvironmentally friendly fabric adopted as a material for the Good Design Award
ceremony badge.
▶ Click here for our sustainability site

© 2022 MORITO CO., LTD.

Relation

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

Initiative

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 and energy.

We had a major exhibit at the Sustainable Fashion Expo
Autumn in October 2022. A number of Rideeco products
were showcased, including items jointly developed with
the Tokyo Verdy women’s hockey team.
*Click here for more information

42

7

Environmental Initiatives

Products

Sales and adoption of our products using recycled discarded fishing nets (our ongoing
initiative) increased.
We launched a new mixed paper product incorporating synthetic fiber as well as products
using origami cranes from Hiroshima City.

Parts and fabric made with materials recycled from discarded fishing nets (Ocean Current ®)Pen cases from Kokuyo Co., Ltd.
Neo Critz—From Fishing Nets Recycling© 2022 MORITO CO., LTD.

Tote bag from ROOTOTE Corporation
ALLIANCE FOR THE BLUE × ROOTOTE

43

ASUKAMI® mixed paper

peacepiece® for Daiso

7

Strong Sales of Sports and Outdoor Products

We received orders for accessories and finished products from major sports brands in Japan aswell as overseas that recognized their functionality and quality, as well as our delivery and global
planning capabilities.
The Beijing Olympics boosted sales of our snowboarding-related products. The POLeR® brandwhich focuses on outdoor products also grew.

POLeR® products© 2022 MORITO CO., LTD.

Snowboardingrelated products

44

7

Growth of the Mexican Subsidiary

Sales to American brands expanded as Morito Scoville Mexico, which was established in2017, served as a procurement and sales base. Demand increased due to the benefits ofstable delivery and the reduction of transportation costs through the use of landtransportation.
The transportation business saw its product lineup grow and orders for automotive interior
components increase, while the apparel business won new orders for baby wear and casual
wear, which are expected to increase in the future.

© 2022 MORITO CO., LTD.

45

7

IR Activities
We continued online video streaming for individual investors.
In fiscal 2023, we will continue to move ahead with IR and corporate
PR activities, including the use of our social media platforms.

May: IR seminar for individual
investors via Logmi Co., Ltd.

October: Posted a company
information video on Minkabu

November: Special interview
by Events Co., Ltd. (Part 1)© 2022 MORITO CO., LTD.

46

November: Special interview
by Events Co., Ltd. (Part 2)

CONTENTS

1
2
3
4

Shareholder Returns

5
6
7
8

© 2022 MORITO CO., LTD.

47

8

Revised FY 2022 Year-end Dividend Forecast

Since the consolidated financial results for FY 2022 exceeded the forecast, we revised the yearend dividend forecast within the scope of the basic dividend policy.* (As of January 13, 2023)
As a result, the annual dividend for the current fiscal year is expected to be 32 yen, an increaseof 3 yen from the initial forecast, with a dividend payout ratio of 51.4% and a DOE of 2.4%.

2nd quarter-end(May 31)

Year-end(November 30)

FY 2021

Yen
9.00

Yen
17.00

Yen
26.00

Yen
-

FY 2022

Yen
13.50

Yen

Yen

Yen

18.50

32.00

+3.00

*The FY 2022 year-end dividend forecast has been revised based on the existing basic dividend policy.

© 2022 MORITO CO., LTD.

48

Increase/
Decrease

Total

8

Basic Dividend Policy
We regard returning profits to shareholders as one of the most importantmanagement issues, and determine the amount of dividends based on the following
policy, taking into consideration investment projects and financial conditions (netassets, etc.).
(Beginning in FY 2023)

Realize stable
and continuous
dividend
payments© 2 0 2 2 MORITO CO., LTD.

Aim for a dividend on equity

Dividend payout
ratio of 50% or morein relation to profit
attributable toowners of parent is
the standard*

49(DOE) ratio of
4.0% (on aconsolidated
basis)* In a fiscal year with a significant fluctuation in after-tax
profit attributable to owners of parent due to special
factors such as extraordinary income or losses, thedividend amount will be determined in consideration of
the corresponding impact.

8

Trends of Dividend, Dividend Payout Ratio & DOE
We adopted a revised basic dividend policy in FY 2023.
60.0
Annual Ordinary
Dividend (JPY)

50.0

30.0
20.0

Forecast

Net income(100 million JPY)

10.0
0.0

Forecast

40.0
Commemorative
Dividend (JPY)

2017

2018

2019

2020

2021

2022

2023 (Forecast)

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

33.0

12.5

14.0

4.7

14.0

15.5

18.0

28.0

25.0

26.0

18.0

26.0

32.0

54.0

14.0

12.5

13.0

13.25

9.0

13.5

27.0

14.0

12.5

13.0

4.75

17.0

18.5

27.0

Dividend payout ratio (%)

23.5

54.7

50.8

104.8

50.6

51.4

80.1

DOE (%)

2.4

2.1

2.2

1.5

2.2

2.4

3.9

© 2022 MORITO CO., LTD.

50

Disclaimer

This handout has been prepared only for information purposes and is
not intended to solicit 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 withinformation known as of the day of presentation and contain some potential risks and uncertainties.
Therefore, please be aware that the content of the forecasts may differ significantly from actual
results, due to various factors such as changes in the business environment.

4-2-4, Minami Honmachi, Chuo-ku, Osaka 541-0054 Japan

Contact

TEL.: 06-6252-3559 / FAX: 06-6252-3483

Morito Co., Ltd.

© 2022 MORITO CO., LTD.

Executive Corporate Planning Dept.

E-mail:ir@morito.co.jp

51

Where innovation is the norm

© 2 0 2 2 MORITO CO., LTD.

52