(Unaudited)
April 12, 2017
MORITO CO., LTD.
Financial Statement (Unaudited)
For the First Quarter of the Fiscal Year ended November 30, 2017
(Translated from the Japanese original)
Corporate Information
Code：9837
Listings：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, 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:

April 14, 2017
－
None
None
(Amounts rounded down)

1. Consolidated Financial Results for the 1Q of FY2017 (December 1, 2016 through February 28, 2017)(1) Consolidated Financial Results(Percentages indicate year-on-year changes)

1Q of FY2017
1Q of FY2016

Net sales
Millions of
%
yen
9,577
△4.4
10,019△2.6

Operating income
Millions of
%
yen
276
△14.3
322
△10.5

(Note) Comprehensive income: 1,549million yen (421.3%) (1Q of FY2017)

1Q of FY2017
1Q of FY2016

Net income
Per share
Yen
6.31
3.99

Ordinary income
Millions of
%
yen
297
19.9
248
△42.3

△482million yen (△129.1%) (1Q of FY2016)

Fully diluted net
Income per share
Yen－－(2) Consolidated Financial Position
Total assets
Net assets
Millions of yen
Millions of yen
1Q of FY2017
40,80429,937FY201640,85329,260Equity ratio
%
73.3
71.6

(Reference) Equity capital: 29,919million yen (1Q of FY2017)29,246 million yen (FY2016)

2. Dividends

FY2015FY2016FY2017(Forecast)First
quarterend
Yen－－

Dividends per share
SecondThird
Fiscalquarter- quarteryearend
end
end
Yen
Yen
Yen
8.00
9.00
－
14.00

－

14.00

Total
(Annual)
Yen
17.00
28.00

(Note) Revision of dividend forecast to the latest announcement : None

Net income
Millions of
%
yen
177
55.2
114
△67.4

(Unaudited)

3. Consolidated Forecast for FY2017 (December 1, 2016 through November 30, 2017)(Percentages represent changes from corresponding period of previous year)

Full year

Net Sales
Millions of yen
43,000

Full year

Net income
Millions of yen
%
3,000
154.0

%
7.3

Operating income
Millions of yen
%
1,800

1.8

Ordinary profit
Millions of yen
%
1,700

3.2

Net income per shareYen
105.44(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 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 :
None
(ii)
Changes in accounting policies other than (i) :
Yes
(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 February 28, 2017)30,800,000 shares(as of November 30, 2016)(ii) Number of shares of treasury stock at end of period:
3,002,600 shares(as of February 28, 2017)
2,349,000 shares(as of November 30, 2016)(iii) Average outstanding number of shares during the period:
28,089,867 shares(the 1Q of FY2017)
28,590,305 shares(the 1Q of FY2016)*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 are 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 the forecasts,
please refer to”01. Qualitative Information for the Period under Review(1) Business Performance” on page 4
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
the treasury shares.

(Unaudited)Index
1. Qualitative Information for the Period under Review...................................................................................... 2(1) Business Performance ..................................................................................................................................... 2(2) Forecast of Consolidated Business Results and Other Forward-looking Information .................................... 3
2. Matters Concerning Summary Information ...................................................................................................... 3(1) Changes in Important Subsidiaries during the period under Review .............................................................. 3(2) Adoption of Special Accounting Treatment for Preparing Quarterly Consolidated Financial
Statement ......................................................................................................................................................... 3(3) Changes in Accounting Policies, Changes in Accounting Estimates and Revision Restated ......................... 3(4) Additional Information....................................................................................................................................... 3
3. Quarterly Consolidated Financial Statements ................................................................................................. 4(1) Quarterly Consolidated Balance Sheets .......................................................................................................... 4(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive
Income.............................................................................................................................................................. 6(3) Notes regarding Quarterly Consolidated Financial Statements ...................................................................... 8[Notes on assumption of going concern] .................................................................................................................. 8[Notes on a Significant Change in Shareholders’ Equity] ......................................................................................... 8[Segment Information] ............................................................................................................................................... 8[Significant Subsequent Events] ............................................................................................................................... 91

(Unaudited)

1. Qualitative Information for the Period under Review(1) Business Performance
In the First quarter (From 1st December, 2016 to 28th February, 2017) of the fiscal year ended
November 30th, 2017, the Japanese economy has shown signs of modest recovery by improving
employment situation and income. However, the economy situation was still unstable due touncertain economic situation of emerging countries and risk of rapid exchange fluctuations inunstable global market.
In the global economy, economic recovery in the US continues due to the increase in consumption
and capital investment was caused by economic policies of new government. However, EU
economy was also uncertain due to Brexit and debt problem of major Banks around EU.
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 7th mid-term management plan, andwill 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.
As a result, in the current quarterly performance reach net sales ¥95,707million (decreased by
4.4% from a year earlier), operating income ¥276 million (decreased by 14.3% from a year earlier),
ordinary income ¥297 million (increased by 19.9% from a year earlier), net income ¥177 million(increased by 55.2% from a year earlier).
The exchange rate used for the consolidated financial statement of the current quarter end as
below:¥109.43 to the U.S. dollar, ¥117.86 to the euro, ¥15.99 to the Chinese yuan, ¥14.11 to theHong Kong dollar, ¥3.45 to the Taiwan dollar, ¥0.0048 to the Vietnamese dong, ¥3.09 to theThai baht.
The exchange rate used for the consolidated financial statement of the year earlier quarter end as
below:¥120.54 to the U.S. dollar, ¥131.67 to the euro, ¥18.34 to the Chinese yuan, ¥15.55 to theHong Kong dollar, ¥3.68 to the Taiwan dollar, ¥0.0053 to the Vietnamese dong, ¥3.35 to theThai baht.
Segment information as below[Japan]As for the apparel division, sales of the accessories for uniform/working wear and women wereincreased, however sales of the accessories for sports and outdoor apparel manufacturer which
was strong in same period a year earlier were decreased.
In the consumer product division, sales of accessories for health-related items, automobile interior
components, rental and cleanup of of kitchen supplies were increased, but sales of the accessories
for shoes and video equipment were decreased.
As a result, net sales were ¥6,574 million (increased by 1.4% from a year earlier).
[Asia]
As for the apparel division, sales of the accessories for US and EU apparel manufacturers in Hong
Kong were decreased.
In the consumer product division, sales of the automobile interior component for Japanese automakers in Shenzhen, and sales of accessories for video equipment in Thailand were decreased.
As a result, net sales were ¥1,762 million (decreased by 11.4% from a year earlier) including effectof Japan yen appreciation.
[Europe and the U.S.]
As for the apparel division, sales of the accessories for domestic market in the U.S. were2

(Unaudited)

deceased.
In the consumer product division, sales of automobile interior article for Japanese automobile
manufacture in the U.S. and sales of the accessories for video equipment were decreased.
As a result, net sales were ¥1,240 million (decreased by 19.7% from a year earlier) including effectof Japan yen appreciation.
(2) Forecast of Consolidated Business Results and Other Forward-looking Information
Currently, there has been no change in the consolidated forecast of FY2017 which was announced
in 13th January, 2017.

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 the method of foreign currency conversion for Income and Expense in overseas
subsidiaries
Income and Expense in overseas subsidiaries has been converted by an exchange rate as ofaccounting date into Japanese yen up to now. However, the method which is that Income andExpense in overseas subsidiaries has been converted by average number of exchange rate into
Japanese yen is applied from the first quarter of this fiscal year. The purpose for this change was totake a financial result of overseas subsidiaries more appropriately in consolidated accounting,because it will be becoming more important for consolidated accounting.
As a result, retroactive application was not implemented since the effect on the first quarter ofprevious year and the term to beginning of this fiscal year caused by this change was minor.
(4) Additional Information
Application of Implementation Guidance on Recoverability of Deferred Tax Assets
Implementation Guidance on Recoverability of Deferred Tax Assets (ASBJ Statement No.26 ofMarch 28, 2016), have been applied from the first quarter of the fiscal year under review.

3

(Unaudited)

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets

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
Land
Other tangible fixed assets
Total tangible fixed assets
Intangible fixed assets
Goodwill
Other Intangible fixed assets
Total intangible fixed assets
Investments and other fixed assets
Investment securities
Net defined benefit asset
Other fixed assets
Allowance for doubtful accountTotal investments and other fixed assets
Total fixed assets
Deferred assets
Total assets

4

FY 2016(As of November 30, 2016)
Thousands of yen

FY 2017(As of February 28, 2017)
Thousands of yen

9,442,122
10,583,460
4,034,245
1,097,177△29,950
25,127,055

8,558,214
10,277,776
4,685,666
941,357△32,940
24,430,074

3,224,579
3,151,432
6,376,011

3,233,054
3,378,032
6,611,087

3,000,353
1,239,174
4,239,528

3,310,257
1,347,558
4,657,815

4,055,364
221,830
890,628△74,988
5,092,834
15,708,375
18,20540,853,636

4,025,763
221,705
912,124△70,988
5,088,605
16,357,508
17,15540,804,737

(Unaudited)

Liabilities
Current liabilities
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
Bonds payable
Long-term debt
Provision for retirement benefit by stock
Provision for director’s retirement benefit
Provision for director's retirement benefit bystock
Provision for environmental measures
Net defined benefit liability
Other fixed liabilities
Total fixed liabilities
Total liabilities
Net Assets
Shareholders' equity
CapitalCapital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Other comprehensive income
Valuation difference on available-for-salesecurities
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

5

FY 2016(As of November 30, 2016)
Thousands of yen

FY 2017(As of February 28, 2017)
Thousands of yen

4,262,005
180,000
400,000
375,396379,220
175,722
79,232
1,465,489
7,317,066

4,273,652
180,000
400,000
375,396
155,994
157,682
28,2381,081,638
6,652,602

1,400,000
161,081
17,37530,4331,400,000
67,232
16,02031,63335,05938,721

18,133918,021
1,695,603
4,275,706
11,592,772

20,896
921,089
1,718,791
4,214,385
10,866,988

3,532,492
3,498,724
23,966,197△1,230,960
29,766,453

3,532,492
3,498,724
23,882,349△1,847,019
29,066,546

1,336,046

1,302,661

861△1,280,438△463,484△112,982△519,997
14,408－29,260,863
40,853,636△614△1,280,438
938,748△107,810
852,546
18,656－29,937,749
40,804,737

(Unaudited)(2) Quarterly Consolidated Statements of Income and Consolidated Statements ofComprehensive Income
Quarterly Consolidated statements of income
The First Quarter accounting period

Net sales
Cost of sales
Gross profit
Total selling, general and administrative
expenseOperating Income
Non-operating income
Interest received
Dividends received
Rent on real estate
Foreign exchange gains
Equity in earnings of affiliates
Other non-operating income
Total non-operating income
Non-operating expenses
Interest paid
Cash discount on sales
Foreign Exchange Loss
Others non-operating expense
Total non-operating expense
Ordinary Income
Extra ordinary income
Gains on sales of fixed assets
Total extra ordinary income
Extra ordinary loss
Loss on disposal of fixed assets
Loss on sales of fixed assets
Loss on golf membership rights
Total extra ordinary loss
Net income before taxes and other adjustment
Corporate, inhabitant and business taxes
Adjustments to corporate and other taxes
Total income taxes
Net income
Profit(Loss) attributable to non-controlling interests
Profit(Loss) attributable to owners of parent

6

FY 2016(December 1, 2015
throughFebruary 29, 2016)
Thousands of yen
10,019,651
7,417,945
2,601,706

FY 2017(December 1, 2016
throughFebruary 28, 2017)
Thousands of yen
9,577,100
7,039,032
2,538,067

2,279,618

2,261,904

322,088276,163

5,882
10,89419,025－
13,9685,690
55,461

5,047
6,704
12,85027,984
11,01912,82376,4304,706
21,611
76,067
26,729129,114
248,435

2,242
21,264－31,30754,814
297,779

1,682
1,682

299
299

953
9,892
－
10,846239,272
89,25435,802125,056
114,215－
114,215

576
2,473
700
3,749
294,329
109,734
7,318
117,052
177,276－
177,276

(Unaudited)

Consolidated Statements of Comprehensive Income

Net Income
Other comprehensive income
Unrealized gain(loss) on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Adjustments to retirement benefit
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attribute to the parent
Comprehensive income attribute to the minority
shareholders

7

FY 2016(December 1, 2015
throughFebruary 29, 2016)
Thousands of yen
114,215

FY 2017(December 1, 2016
throughFebruary 28, 2017)
Thousands of yen
177,276△564,695△33,384△5,229△18,147△8,537△596,610△482,394△1,475
1,402,233
5,172
1,372,544
1,549,821△482,394

1,549,821－－

(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 2016 (December 1, 2015 through February 29, 2016)
The information on net sales, income or loss, assets and other items by reportable segment(Thousands of yen)
Reportable Segment
Adjustment
Consolidated(Note 1)
Statement
Japan
Asia
EU and US
Total
Amount(Note 2)Net Sales
Sales to external
6,485,661 1,990,191
1,543,799 10,019,651－
10,019,651
customers
Inter segment sales and558,878
481,654
25,303
1,065,837△1,065,837－
transfer
Total
7,044,539 2,471,845
1,569,103 11,085,489△1,065,837
10,019,651
Segment income
227,398
117,332
63,483
408,213△86,125
322,088(Notes)1.
Adjustment of △86,125 thousand yen includes △78,816 thousand yen-corporate expenses
that are not distributed to each reportable segment and other △7,308 thousand yen.
2.
The amounts for income or losses in the reportable segments were subsequently adjustedwith the amount of operating income on the quarterly consolidated profit and loss statement.
2. The First Quarter of FY 2017 (December 1, 2016 through February 28, 2017)
The information on net sales, income or loss, assets and other items by reportable segment(Thousands of yen)
Reportable Segment
Adjustment
Consolidated(Note
1)
Statement
Japan
Asia
EU and US
Total
Amount(Note 2)Net Sales
Sales to external
6,574,279 1,762,626
1,240,194
9,577,100－
9,577,100
customers
Inter segment sales and477,412627,843
20,0901,125,346△1,125,346－
transfer
Total
7,051,692 2,390,470
1,260,285 10,702,447△1,125,346
9,577,100
Segment income
274,226
86,868△4,009357,085△80,922
276,163(Notes)1.
Adjustment of △80,922 thousand includes △77,948 thousand yen-corporate expenses thatare not distributed to each reportable segment and other △2,974 thousand yen.
2.
The amounts for income or losses in the reportable segments were subsequently adjustedwith the amount of operating income on the consolidated profit and loss statement.

8

(Unaudited)[Significant Subsequent Events]
Transfer of Fixed Assets
The Board of Directors of Morito Co., Ltd. (the “Company”), at its meeting held on December 20,
2016, has decided on transfer of fixed assets. Moreover, its fixed asset has been transferred on
March 15, 2017. Details are as follows
1. The purpose of transfer
To increase efficiency and promote effective use of managerial resources
2. Details of the transferred fixed asset
Class of AssetLand (983.63 ㎡)
Minami-Honmachi, Chuo-ku, Osaka
Use before transferred
ParkingBook Value
605 million yen
Deposition Price
3,900 million yen
3. Outline of a transactional company
Details of a transactional company (the “Party”) are not disclosed under Non-Disclosure
Agreement. However, the Company had never had any business relationship with the Party suchas capital or personal, furthermore the Party is not related parties.
4. Schedule
Date of Corporate resolution
Contract day
Date of Transferred

December 20, 2016
December 21, 2016
March 15, 2017

5. Effect on profit and loss
3,291 million yen by gain from sales of fixed asset will be posted in second quarter of FY2017 asExtraordinary profit.

9