MORITO CO., LTD.

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

Where innovation is the norm

Prime Market of TSE: 9837
January 2024

Where innovation is the norm

© 2024 MORITO CO.,LTD.

CONTENTS

1

Company Profile2

8th Mid-term Management Plan Update

3

FY 2023.11 Financial Results

4

FY 2023.11 Business Overview

5

FY 2024.11 Full-Year Forecast

6

Business Topics

7

Shareholder Returns

Where innovation is the norm

© 2024 MORITO CO.,LTD.

01

1Company Profile

Where innovation is the norm

© 2024 MORITO CO.,LTD.

02

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”

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© 2024 MORITO CO.,LTD.

03

Company Profile● Founded in 1908

･ Began operating in Osaka as a broker of eyelets
and snap fasteners･ Later expanded operations mainly for sales of
MAGIC TAPE® and other clothing accessories,
automotive interior components, etc.

Eyelets

Snap fasteners● Trading company with manufacturing functions･ A specialized trading company that handles everythingfrom planning and development to manufacturing,
wholesale, and distribution

MAGIC TAPE®

*Eyelet: A metal ring attached to a hole in shoes,
clothing, etc. through which a lace or cord is threaded･ Operating 19 locations around the world● Operating three businesses･ Apparel, product, and transportation businesses form thecore of our operations･ Ratio of in-house production and procurement is 3:7

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© 2024 MORITO CO.,LTD.

04

Operations by BusinessApparel Business<Examples of products handled>

Snap fasteners MAGIC TAPE®

Tape

Eyelets andshoelaces<Applications>Casual wear/shoes
Sportswear/shoes
Workwear/shoes
Medical wear, baby wear
Formal wear/shoes, bags

Product Business<Examples of products handled>

Buttons

MAGIC TAPE®

Grease filter

In-housebrandsStrapsSkateboards,
snowboards, andsurfboards

Transportation Business<Examples of products handled>

InsolesIn-housebrandsSnap fasteners MAGIC TAPE®

Emblems

Trunk floor
lining

Nets

Door armrests<Applications><Applications>

Insoles and shoe care productsVideo equipment-related products such as
camera and PC cases, braces and supports,
safety products, teaching tools and stationery,skateboards, surfboards, etc.

Automotive interior components
Railway and Shinkansen interior components
Aircraft interior components

Active sports products

Grease filter rental service

Where innovation is the norm

© 2024 MORITO CO.,LTD.

05

Morito’s Strengths● 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.
● Stable performance with a diversified portfolio
Operating worldwide with three core businesses focused on apparel, products, and transportation,
we have maintained a stable financial performance without falling into the red despite the impact of
the oil crises (in the 1970s), the 2008 financial crisis, and the COVID-19 pandemic.
● Enjoying high market share for various products targeting niche areas
Many products dominate the market in their respective industry.
We have the top market share for metal snap fasteners in Japan, and the highest or second-highest
in the world.
● Global manufacturing, procurement, and sales capabilities
In addition to our own locations, we have partner plants and distributors all over the world, giving us
close proximity to our customers and the ability to respond to their every need.

Where innovation is the norm

© 2024 MORITO CO.,LTD.

06

2
8th Mid-term Management Plan Update

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© 2024 MORITO CO.,LTD.

07

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

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© 2024 MORITO CO.,LTD.

08

Summary of 8th Mid-term Management Plan Update

Situational analysis<Outcome of initiatives implemented>
1. Improved profit margin as a result of businessrestructuring

Historical Stock Price and PBR

799 JPY

2. Opportunities created and costs cut during the pandemic<Issues>
1,295 JPY

PBR

Stock
Price

758 JPY
612 JPY 641 JPY

3. Improved PBR (see graph on the right)
Establishing a lean profit structure
Initial financial targets to be achieved earlier thanprojected

1. Specific growth strategies for eachbusiness
2. Investment for future growth
3. Management aiming at PBR of 1 orhigher Realize ROE exceeding costof equity

Action plan
 Investing with an eye to growth under the next mid-term plan Moving Rideeco® forward

Boost capital investments, new businesses, and B2C / Build IT infrastructure and invest in
human capital / Expand manufacturing function

 Growth strategies for existing businesses
Local production for local consumption and Asia strategies / Increase global market share

8th Mid-term Management Plan update
 Revised financial targets upward Use the run-up to FY 2026 to pave the way toward
accelerating growth in the future

Where innovation is the norm

Financial targets[FY2026]
Net sales: 60,000 million JPY Operating profit: 3,000
million JPY ROE: 6.5%
[Our vision for FY 2030]
Net sales: 80,000 million JPY Operating profit: 5,000
million JPY ROE: 8.0%

© 2024 MORITO CO.,LTD.

09

Current Status and Vision for 2030 by BusinessNet sales

Increase both profit
margin andbusiness size

2030
Efforts focused on
North American
operations

ApparelFocus on improving
profitability while
increasing business size

Create new corebusinesses

Expand efforts to increase
profit margin and efficiency

2030
2030
Product

2030

New

Transportation
Product
M*

Operating profit ratio*Product Ⓜ is a business added to the Morito Group’s operations as a result of an acquisition, etc. It mainly refers to businesses related to kitchen equipmentrelated services and action sports.

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© 2024 MORITO CO.,LTD.

10

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

3,000
million JPY

60,000
million JPY+10,000 million JPY(+20.0%)48,500
million JPY+500 million JPY(+20.0%)50,000
million JPY

2,400
million JPY

2,500
million JPY

Operating profit
ratio: 5.0%2023 results

Where innovation is the norm

2026 initial target

2026 revised target

2023 results

2026 initial target

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

11

Investment Strategy

Existing investments and equipment retention

Operating CF
7,000 million JPY±20%

Cash on handExternal
procurement

1,200 million
JPY

Growthinvestment
New product development expenses

500 million JPY

Initiatives to reduce environmental impact

500 million JPY

Capital investment (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

Investment 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 FY 2026

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© 2024 MORITO CO.,LTD.

12

Investment Strategy [M&A]

M&A policy

1. Niche top company

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
Where innovation is the norm

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© 2024 MORITO CO.,LTD.

13

Corporate Strategy [Capital and Financial Strategy: Overview] Expand business through aggressive growth investment (see p. 12 for details of investment strategy) Optimize capital structure by utilizing interest-bearing debt
 Continue shareholder return and control net assets

Target B/S structure
Current B/S

Cash anddeposits

Liability

Use cash generated by
improved CCC, effective use
and sale of assets, etc. forinvestment

Cash anddeposits
Reduction

Interestbearing debt

Liability
Interestbearing debt
Utilization

Use it for future
investments in businessexpansion, including M&A

Higherstock
price

AssetsAssetsNet assets

Marketcapitalization

Net assets

MarketcapitalizationContinue shareholder return and control net assets
Basic dividend policy: Target a dividend payout ratio of 50% and DOE ratio of 4.0%,
and buy back shares whenever necessary and cancel them appropriately▶ For more information about the 8th Mid-Term Management Plan Update, click here.

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© 2024 MORITO CO.,LTD.

14

3
FY 2023.11 Financial Results

Where innovation is the norm

© 2024 MORITO CO.,LTD.

15

FY 2023 Highlights

 Slowing consumption and stagnant demand in Europe, the United States, andChina continued, in addition to the impact of the mild winter.
 Sales of accessories and products with superior functionality were strong.
 Awareness about boosting profit margins has continued toincrease (e.g., withdrawal from unprofitable businesses) sinceMorito Japan’s split.
 Net sales, operating profit, and ordinary profit for FY 2023 hit all-time highs.

Where innovation is the norm

© 2024 MORITO CO.,LTD.

16

FY 2023 Summary of Financial Results(Million JPY)

FY2022

Increase/
Decrease

FY2023

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%

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© 2024 MORITO CO.,LTD.

17

FY 2023

Net Sales

Net sales: 48,529 million JPY
Y/Y: +51 million JPY (+0.1%)
In addition to the continued slowdown in consumption and stagnant demand in Europe, the UnitedStates, and China, the streamlining of unprofitable businesses and the warm winter hampered thegrowth of the domestic apparel and product businesses in 4Q.

(Million JPY)

Japan 34,070 million JPY
Y/Y +554 million JPY (+1.7%)

Asia 7,705 million JPY
Y/Y -635 million JPY (-7.6%)

6,753 million JPY
Y/Y + 132 million JPY (+2.0%)
Europe & the U.S.

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© 2024 MORITO CO.,LTD.

18

FY 2023

Quarterly Financial Trends

The domestic apparel and product businesses lagged behind more than expected in 4Q
due to the strong impact of the warm winter.

(Million JPY)

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© 2024 MORITO CO.,LTD.

19

FY 2023

Gross Profit

Gross profit: 13,265 million JPY

Y/Y: +778 million JPY (+6.2%)

Increased due to higher sales and improved gross profit ratio.
Since Morito Japan’s split last year, awareness of profit margins has continued toincrease among corporate managers and sales personnel of each company.
(Million JPY)
(Million JPY)

Where innovation is the norm

Increase/
Decrease

FY2022

FY2023

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%

Operatingprofit

2,116

2,464

+348

+16.4%

Ordinary
profit

2,342

2,771

+429

+18.3%Net income

1,674

2,217

+543

+32.5%© 2024 MORITO CO.,LTD.

20

FY 2023

Trends in Net Sales & Gross Profit Ratio

The gross profit ratio improved due to increased sales of high value-added products aswell as rising awareness of profit margins, which resulted in the streamlining of

unprofitable businesses, changes in sales terms and conditions, etc.

(Million JPY)

Where innovation is the norm

4Q Total net sales(Cumulative)

Gross profit ratio© 2024 MORITO CO.,LTD.

21

FY 2023

Operating Profit

Operating profit: 2,464 million JPY

Y/Y: +348 million JPY (+16.4%)

Increased due to higher gross profit. The efficiency of logistics operations continued to
improve although there was an increase in personnel costs.

(Million JPY)

FY2023

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%

2,116

2,464

+348

+16.4%

4.4%

5.1%

2,342

2,771

+429

+18.3%

1,674

2,217

+543

+32.5%

OperatingprofitOperatingprofit ratio
Ordinary
profit
Net income

Where innovation is the norm

Increase/
Decrease

FY2022(Million JPY)

Y/Y© 2024 MORITO CO.,LTD.

22

FY 2023

Ordinary Profit

Ordinary profit: 2,771 million JPY

Y/Y: +429 million JPY (+18.3%)

Increased due to higher operating profit.

(Million JPY)
(Million JPY)

Increase/
Decrease

FY2022

FY2023

Net sales

48,47848,529+51+0.1%

Gross profit

12,487

13,265

+778

+6.2%

Cost

10,37010,801

+431

+4.2%

2,116

2,464

+348

+16.4%

2,342

2,771

+429

+18.3%

4.8%

5.7%

Net income

1,674

2,217

+543

+32.5%Net income
ratio

3.5%

4.6%

OperatingprofitOrdinary
profitOrdinary
profit ratio

Y/Y© 2024 MORITO CO.,LTD.

23

FY 2023

Net Income

Net Income: 2,217 million JPY

Y/Y: +543 million JPY (+32.5%)

Increased due to an increase in extraordinary income, including sales of investment
securities, as well as the tax effect from reorganization.

(Million JPY)
(Million JPY)

FY2023

Net sales

48,47848,529+51+0.1%

Gross profit

12,487

13,265

+778

+6.2%

Cost

10,37010,801

+431

+4.2%

2,116

2,464

+348

+16.4%

2,342

2,771

+429

+18.3%

4.8%

5.7%

Net income

1,674

2,217

+543

+32.5%Net income
ratio

3.5%

4.6%

OperatingprofitOrdinary
profitOrdinary
profit ratio

Where innovation is the norm

Increase/
Decrease

FY2022

Y/Y© 2024 MORITO CO.,LTD.

24

FY 2023

Balance Sheet(Million JPY)

2022 4Q

2023 4Q

2022 4Q

AssetsCurrent assets

30,4812023 4Q

Liabilities

31,149Current liabilities

9,309

8,589

Fixed liabilities

4,278

4,382

13,587

12,972(+668)

Total liabilities(-720)(+104)(-615)Net assets

Fixed assets

Total assets

19,79050,271

20,280(+490)

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
and net assets

50,271

51,429(+813)(+992)

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

Equity ratio 74.7% (FY2022 4Q 72.9%)© 2024 MORITO CO.,LTD.

25

FY 2023

Consolidated Cash Flow Statement(Million JPY)

2022 4Q

2023 4Q

11,020

10,396

Cash flows from operating activities

850

4,399

Cash flows from investing activities

(135)

77

Cash flows from financing activities(1,916)(1,983)

577

119

(623)

2,613

-

-

-

-

10,396

13,009Cash and cash equivalents at beginning of period

Effect of exchange rate change on cash and cash
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

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© 2024 MORITO CO.,LTD.

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4
FY 2023.11 Business Overview

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© 2024 MORITO CO.,LTD.

27

FY 2023

Net Sales by Region(Million JPY)

Japan

Y/Y

+554 million JPY(+1.7%)

Where innovation is the norm

Asia

Y/Y

-635 million JPY(-7.6%)

Europe & the U.S.

Y/Y+132 million JPY(+2.0%)© 2024 MORITO CO.,LTD.

28

FY 2023

Net Sales for Apparel BusinessNet sales: 23,205 million JPY

Y/Y: +410 million JPY (+1.8%)

Sales of accessories for athletic shoes were strong.
Product sales in Europe and the United States were affected by overstocking and stagnant
demand in the market. Sales of winter products also slowed down in 4Q due to the warm winter.

(Million JPY)Japan
・ Decrease in accessories for medical wear sold in Europe
and the U.S.
・ Increase in accessories for workwear, athletic shoes, and
bags

Asia
・ Increase in accessories for baby wear in China andHong Kong
・ Increase in accessories for athletic shoes and workwearrelated products in Vietnam
・ In China and Hong Kong, decrease in accessories forcasual wear and workwear sold in Europe and the U.S.

Europe & the U.S.
Japan

Where innovation is the norm

Asia

Europe & the U.S.

・ Decrease in accessories for casual wear and workwear© 2024 MORITO CO.,LTD.

29

FY 2023

Net Sales for Product BusinessNet sales: 17,856 million JPY
Y/Y: -203 million JPY (-1.1%)
Sales were robust for kitchen appliance-related services as well as medical device-related andother high-value-added products.
Demand for active sports-related products that rose during the COVID-19 pandemic subsided.
(Million JPY)Japan
・ Decrease in construction safety products
・ Decrease in surfboard-related products
・ Increase in medical device-related products
・ Increase in products for one-coin shops
・ Increase in kitchen appliance rental, sales,
and cleaning business

Asia
・ On a par with last year

Japan

Where innovation is the norm

Asia

Europe & the U.S.

© 2024 MORITO CO.,LTD.

30

FY 2023

Net Sales for Transportation BusinessNet sales: 7,467 million JPY
Y/Y: -154 million JPY (-2.0%)
Automotive production was still below the pre-pandemic level, but the impact of thesemiconductor shortage continued to lessen.
In China, however, sales declined due to the withdrawal from unprofitable businesses.

(Million JPY)

Japan・ Increase in automotive interior components for Japanese
automotive manufacturers

Asia・ Decrease in automotive interior components toJapanese automotive manufacturers in China

Europe &the U.S.
Japan

Where innovation is the norm

Asia

Europe & the U.S.

・ Increase in automotive interior components for Japanese
automotive manufacturers© 2024 MORITO CO.,LTD.

31

FY 2023

Net Sales by Region (Quarterly)(Million JPY)

FY 2023
1Q

2Q

3Q

4Q

Japan

8,502

8,826

7,901

Asia

1,719

1,864

Europe &the U.S.

1,582

Total

11,804

Increase/
Decrease

Full year

Composition

Y/Y

8,841

34,070

70.2%

+554

+1.7%

1,739

2,383

7,705

15.9%

-635

-7.6%

1,654

1,763

1,754

6,753

13.9%

+132

+2.0%

12,344

11,403

12,97848,529100.0%+51+0.1%

Full year

Composition

Increase/
Decrease

FY 2022
1Q

2Q

3Q

4Q

Japan

7,912

8,196

8,031

9,377

33,516

69.1%+3,287+10.9%

Asia

2,212

1,885

2,180

2,063

8,340

17.2%

+286

+3.6%

Europe &the U.S.

1,436

1,564

1,755

1,866

6,621

13.7%

+1,268+23.7%

Total

11,561

11,646

11,965

13,306

48,478100.0%+4,842+11.1%

Where innovation is the norm

Y/Y© 2024 MORITO CO.,LTD.

32

FY 2023

Sales Composition by Region

2022 4Q

2023 4Q

Europe &the U.S.
14%

Europe &the U.S.
14%

Asia
17%

Asia
16%
Japan
69%

Japan
70%

The percentage for Asia, where we mainly operate transportation and apparel businesses
targeting the European and the U.S. markets, declined.
The Japanese market recovered.

Where innovation is the norm

© 2024 MORITO CO.,LTD.

33

FY 2023

Sales Composition by Region & Business2023 4Q

2022 4Q
Europe & the U.S.
14%

Asia
14%
Asia
25%

Japan
61%
Transportation
16%

Asia
4%

Japan
51%

Asia
3%

Europe & the U.S.
19%
Japan
Japan
67%
51%
Transportation
15%

Apparel47%
Product
37%
Japan
96%

Apparel
48%
Asia
25%

Europe & the U.S.
24%

Product
37%
Japan
97%

Asia
26%

Europe & the U.S.
23%

The percentage for the transportation businessdecreased due to the withdrawal from unprofitablebusinesses in China.

Where innovation is the norm

© 2024 MORITO CO.,LTD.

34

5
FY 2024.11 Full-Year Forecast

Where innovation is the norm

© 2024 MORITO CO.,LTD.

35

FY 2024

Full-Year Forecast(Million JPY)

FY 2023

FY 2024
Full-Year Forecast

Increase/
Decrease

Y/Y

Net sales

48,52951,000+2,471+5.1%

Operating profit

2,464

2,600

+136

+5.5%

Operating profit
ratio

5.1%

5.1%

Ordinary profit

2,771

2,800

+29

+1.0%

Ordinary profit
ratio

5.7%

5.5%

Net income

2,217

2,300

+83

+3.7%

Net income ratio

4.6%

4.5%

Where innovation is the norm

© 2024 MORITO CO.,LTD.

36

FY 2024

Forecasted Trends in Net Sales & Gross Profit Ratio

Gross profit ratio is expected to improve due to the streamlining of unprofitablebusinesses, acquisition of new customers, and a greater focus on local production for

local consumption as well as local procurement.

(Million JPY)
4Q Total net sales(Cumulative)

Gross profit ratio

Forecast

Where innovation is the norm

© 2024 MORITO CO.,LTD.

37

6
Business Topics

Where innovation is the norm

© 2024 MORITO CO.,LTD.

38

Environmental Initiatives “Rideeco®”
Rideeco® is the Morito Group’s initiative to develop environmentally friendly products and is one of
the focus areas of its growth strategies under the 8th Mid-Term Management Plan. In fiscal 2023, we

carried out a number of initiatives and events to raise brand awareness, with an eye to expanding
sales channels for materials using discarded fishing nets.

Rideeco🄬 products featured in an exhibit at the
Kaiyukan Aquarium using an emptied aquarium tank

Started on-site SDGs classes at schools

Exhibited at the Sustainable Fashion Expo 2023

Project for collecting discarded fishing nets

(Kyoto City Iwakura Minami Elementary School)(Shizuoka Prefecture, Chiba Prefecture, and more to come)

Where innovation is the norm

© 2024 MORITO CO.,LTD.

39

Environmental Initiatives

Upcycling of baseballcaps used by Orix
Buffaloes players

Tokyo Verdi
Women’s Hockey Team
Jerseys

Where innovation is the norm

FY 2023 Product Development Results

DOCTORAIRBlue Life Series
Right: BLUE LIFE Premium
3D Neck Massager
Left: BLUE LIFE 3D Massage Pillow

Smartphone pouch for Lexus
Collection Spring/Summer 2023

ASUKAMI®
A mixed paper made from fabric scraps
from apparel factories, adopted byWorld Co., Ltd. for use in tags, etc.

Fabrics made fromdiscarded fishing nets
Currently developing a recycled fishing
net fabric containing a higher ratio of
discarded fishing nets

© 2024 MORITO CO.,LTD.

40

Group Company

Ace Industrial Machinery Co., Ltd. (Product Business)

The company provides rental services for grease filters installed in commercial kitchen ventilation
hoods and has one of the highest market shares in Japan. It provides filter exchange, delivery, andcleaning services across Japan.
The company also offers kitchen exhaust hood cleaning services, helping restaurant operators
realize a comfortable working environment and mitigate the risk of fire.
https://www.ace-kouki.co.jp/index.html

Areas where grease filters are installed
Exhaust ductFire damper

Filter housing (V-bank)
Hood

Oil hose
Oil cup

Number of restaurants
using services
There are approximately 620,000 restaurants inJapan. There is still room for growth!
*

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

Where innovation is the norm

Approx.

18,000FilterNumber of filters owned
If you stacked all our filters flat one on top of
another, the pile would stand over 3,400 meters
high. That’s about the same height as the 8th
station along the trail to the summit of Mt. Fuji.
If you stacked them vertically they would reach thestratosphere, standing over 48.5 kilometers high.

Approx.

137,000

Number of filters
cleaned per monthOver 4,500 filters are cleaned each day.

Approx.

101,000*Based on the Ministry of Internal Affairs and Communications’ 2014
Economic Census for Business Activity© 2024 MORITO CO.,LTD.

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Group Company

Ace Industrial Machinery Co., Ltd. (Product Business)

The company operates a cleaning plant equipped with state-of-the-art cleaning systems at eachlocation. They efficiently remove contaminants from industrial wastewater to protect the environment.

The company plans to upgrade equipment at the Kyushu Service Center in fiscal 2024 and put a newservice center into operation in 2025 to expand service coverage in the Hokkaido area. Additional
capital investment in the company’s plants by 2026 is in the works.
▶ See the 8th Mid-Term Management Plan Update for more information.

Environmentally friendly facility
Ace Industrial Machinery focuses onsaving energy in its cleaning plants,
reusing water used to clean filters, andappropriately treating wastewater withan eye to achieving the SDGs.

GOOD
HEALTH AND
WELL-BEING

CLEAN WATERAND
SANITATIONSUSTAINABLE
CITIES ANDCOMMUNITIESLIFE BELOW
WATER

In-house plant equipment
Automatic filter cleaning and drying with an automatically controlled crane

Where innovation is the norm

© 2024 MORITO CO.,LTD.

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YOSOOU® B2C Brand (Apparel Business)
Our down wear brand employing the stretch material, Dual Flex®, is the perfect combination ofsophistication and style. Machine-washable, antistatic, and more, the lineup offers full functionality.

We opened the brand’s online store in October 2023 as well as pop-up shops at department stores, etc.
▶ YOSOOU Official Online Shop

Where innovation is the norm

© 2024 MORITO CO.,LTD.

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(FYI) Media Coverage Our joint initiative with Orix Buffaloes was featured on Wave!!!! on
Kiss FM KOBE along with one of our group employees.
https://x.com/kissfmwave/status/1716677941315436630?s=46&t=7d2cBCnDhwx9Fl7FLZelrg

 Articles about our on-site SDGs class initiative at schools were published on
Yahoo! News, etc.
https://ovo.kyodo.co.jp/news/life/a-1912230

 Our Rideeco® initiative was featured on Live Door News.
https://x.com/livedoornews/status/1727261730164858884?s=12&t=7d2cBCnDhwx9Fl7FLZelrg

Where innovation is the norm

© 2024 MORITO CO.,LTD.

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7Shareholder Returns

Where innovation is the norm

© 2024 MORITO CO.,LTD.

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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 andcontinuous dividend
payments

Dividend payout
ratio of 50% or morein relation to profit
attributable to ownersof parent is thestandard

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

Where innovation is the norm

Standard of a dividendon equity (DOE) ratio of

4.0%(on a consolidated
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, the dividend amount will be
determined in consideration 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
Annual Ordinary
Dividend (JPY)50.0

Net income(100 million JPY)

Forecast

40.0
Commemorative
Dividend (JPY)

30.0
20.0
Forecast

10.0
0.0
2018

2019

2020

2021

2022

2023

2024 (forecast)

Net income (100 million JPY)

12.5

14.0

4.7

14.0

16.7

22.1

23.0

Annual dividend per share(JPY)
Interim dividend per share(JPY)
Year-end dividend per share
(JPY)

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

65.6

67.1

DOE(%)

2.1

2.2

1.5

2.2

2.4

3.9

4.0

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 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 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 forecasts may differ significantly from
actual results, due to various factors such as changes in the business environment.

Contact
MORITO CO., LTD.

Where innovation is the norm

4-2-4, Minami Honmachi, Chuo-ku, Osaka 541-0054 Japan
Executive Corporate Planning Dept.

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

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Where innovation is the norm

Where innovation is the norm

© 2024 MORITO CO.,LTD.

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