MORITO CO., LTD.
Presentation Materials for the Six
Months of the Fiscal Year Ending
November 30, 2023, Financial Results
Where innovation is the norm

Prime Market of TSE: 9837
July 2023© 2023 MORITO CO., LTD.

CONTENTS

1

Company Profile

2

Medium- and Long-term Policy

3

8th Mid-term Management Plan

4

FY2023.11 2Q Financial Results

5

FY2023.11 2Q Business Overview

6

Business Topics

7

Shareholder Returns

W here innovation is the norm

© 2023 MORITO CO., LTD.

01

1Company Profile

W here innovation is the norm

© 2023 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”

W here innovation is the norm

© 2023 MORITO CO., LTD.

03

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

● Trading company with manufacturing functions･ A specialized trading company that handles everythingfrom planning and development to manufacturing,
wholesale, and distribution･ Operating 19 locations around the world

Eyelets

Hooks

MAGIC TAPE®

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

W here innovation is the norm

© 2023 MORITO CO., LTD.

04

Operations by BusinessApparel Business<Examples of products handled>

Product Business<Examples of products handled>

Hooks

MAGIC TAPE®

Buttons

MAGIC TAPE®

Resin parts

Tape

Eyelets andshoelaces

In-housebrandsStrapsSkateboards,
snowboards, andsurfboards<Applications>Casual wear/shoes
Sportswear/shoes
Working wear/shoes

Medical wear, baby wear
Formal wear/shoes, bags

W here innovation is the norm

Transportation Business<Examples of products handled>

InsolesIn-housebrandsHooks

MAGIC TAPE®

Nets

Emblems

Trunk floor
lining

Door armrests<Applications><Applications>

Insoles and shoe care productsVideo equipment-related products such as

Automotive interior components
Railway and Shinkansen interior components

camera and PC cases, braces and supports,
safety products, teaching tools and stationery

Aircraft interior components

Skateboards, surfboards, etc.
Active sports products(FY2022)© 2023 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 oilcrises (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 hooks 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.

W here innovation is the norm

© 2023 MORITO CO., LTD.

06

2
Medium- and Long-term Policy

W here innovation is the norm

© 2023 MORITO CO., LTD.

07

Past Efforts to Become a “Global Niche Top Company”

Expanding lines of products andrange of customer industries
Entering the B2C
marketEyelets,
hooks,
andshoelaces

MAGIC
TAPE®

W here innovation is the norm

Strengthening high-valueadded products

Handling of all
ranges of apparelaccessories

Handling andOEM of apparelproducts

Launch of inhouse luxury
brand, 52 BY
HIKARUMATSU
MURA

Development andsales ofenvironmentallyfriendly products

ApparelBusiness

Handling of shoecare products

OEM and ODM ofproducts related
to health andvideo devices

Launch of inhouse shoe care,
support, and bagbrandsDevelopment andsales of loT
products

Product
Business

Handling ofmaterials for car
mats

Handling of
automotive
componentmaterials

Handling of
Shinkanseninterior
components

Handling of
automotive
interior
components(lining materials)

Transportation
Business© 2023 MORITO CO., LTD.

08

Past Efforts to Become a “Global Niche Top Company”

Building global
network

Sales andprocurement

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

Manufacturing

China (Shenzhen), USA (Georgia), Vietnam (Da Nang)

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

W here innovation is the norm

･ Diversity and work style reform･ Personnel strategies, including hiring mid-career workers© 2023 MORITO CO., LTD.

09

Medium- and Long-term Policy

Morito’s Vision

Become a global niche top company that keeps making a big difference in theworld with small parts

Business 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 theirproduction efficiency• Sign M&A deals• High-value-added products (safety, health, and environmental initiatives)

Corporate strategies• Leverage IT to support manufacturing, business, and sales activities• Strengthen management of operations and procurement to build asound financial structure and improve capital efficiency• Operate the company with SDGs in mind

Building a businessstructure to adapt to the
COVID-19 pandemic• Streamline costs• Enhance profitability• Streamline unprofitable businesses

8th Mid-termManagement Plan

2020–2021

W here innovation is the norm

© 2023 MORITO CO., LTD.

10

3
8th Mid-term Management Plan

W here innovation is the norm

© 2023 MORITO CO., LTD.

11

8th Mid-term Management Plan (Running through FY2026)
Made partial changes to the 8th Mid-term Management Plan in January 2023

Key Changes

1. Formulated a sustainability policy▶ https://www.morito.co.jp/sustainability_en/

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(3) Improve asset efficiency(4) Optimize capital structure

W here innovation is the norm Distribute profits appropriately

 Streamline balance sheet, create cash flows, and actively invest in funds
 Utilize financial leverage© 2023 MORITO CO., LTD.

12

8th Mid-term Management Plan (Running through FY2026)
Made partial changes to the 8th Mid-term Management Plan in January 2023

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 FY2023)- Realize stable and continuous dividend payments- Dividend payout ratio of 50% or more on a consolidated basis inrelation to profit attributable to owners of parent- Dividend on equity (DOE) ratio target of 4.0% on a consolidated basis
However, in a fiscal year with a significant fluctuation in after-tax profit attributable to ownersof parent due to special factors such as extraordinary income or losses, the dividend amountwill be determined in light of the corresponding impact.

W here innovation is the norm

© 2023 MORITO CO., LTD.

13

8th Mid-term Management Plan

Quantitative Targets (up to FY2026)

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

4,000
Quantitative targets for
FY2026
Consolidated net sales: 50 billion
yenConsolidated operating profit: 2.5billion yen

45,98743,943

43,636

41,38850,00048,4783,000

40,72740,08640,000

2,000

2,116
1,707

1,725

1,734

1,000

1,619

8th Mid-term Management Plan (5years)

856

30,000

0
2016

2017

2018

2019

2020

2021

2022

2023
Forecast

W here innovation is the norm

2024

2025

2026
Plan

Operating profit

Net sales

1,767

2,500

2,300

© 2023 MORITO CO., LTD.

14

4
FY2023.11 2Q Financial Results© 2023 MORITO CO., LTD.

15

FY2023 2Q

Highlights● While demand in Europe, the U.S., and China stagnated due to a slowdown
in consumption, demand in all markets in Japan recovered significantly.

● Sales of accessories and products with superior functionality were strong.

● Net sales, operating profit, and ordinary profit for the first fiscal half hit alltime highs since we began reporting semiannually.

W here innovation is the norm

© 2023 MORITO CO., LTD.

16

FY2023 2Q

Summary of Financial Results(Million JPY)

FY2022

FY2023

Increase/Decrease

Y/Y

Net sales

23,207

24,148

+941

+4.1%

Gross profit

6,113

6,541

+428

+7.0%

Gross profit ratio

26.3%

27.1%

Cost

4,995

5,236

+241

+4.8%

Cost ratio

21.5%

21.7%

Operating profit

1,117

1,305

+188

+16.8%

Operating profit ratio

4.8%

5.4%

Ordinary profit

1,219

1,459

+240

+19.6%

Ordinary profit ratio

5.3%

6.0%

Net income

879

1,308

+429

+48.7%Net income ratio

3.8%

5.4%

W here innovation is the norm

© 2023 MORITO CO., LTD.

17

FY2023 2Q

Net Sales

Net sales: 24,148 million JPY

Y/Y: +941 million JPY (+4.1%)

Despite concerns about stagnant demand in Europe, the U.S., and China, overall sales
were up due to an increase in domestic demand and a recovery in the transportation
business in Europe and the U.S.

(Million JPY)

Japan

17,328 million JPY

Y/Y+1,220 million JPY (+7.6%)

Asia

3,583 million JPY

Y/Y-514 million JPY (-12.5%)

24,14823,207

Europe & the U.S.
Y/Y

2022

W here innovation is the norm

3,236 million JPY+236 million JPY (+7.9%)2023© 2023 MORITO CO., LTD.

18

FY2023 2Q

Quarterly Financial Trends

Sales for 2Q alone were also the highest ever.

(Million JPY)
14,00013,00012,00011,00010,000
9,000
8,000
7,000
6,000
5,000
1Q

2Q

3Q

2019

W here innovation is the norm

4Q

1Q

2Q

3Q

2020

4Q

1Q

2Q

3Q

2021

4Q

1Q

2Q

3Q

2022

4Q

1Q

2Q

2023

© 2023 MORITO CO., LTD.

19

FY2023 2Q

Gross Profit

Gross profit: 6,541 million JPY

Y/Y: +428 million JPY (+7.0%)

Increased due to higher sales and improved gross profit ratio.

(Million JPY)
(Million JPY)

6,113

2022

W here innovation is the norm

6,541

2023

Increase/
Decrease

FY2022

FY2023

Y/Y

Net sales

23,207

24,148

+941

+4.1%

Gross profit

6,113

6,541

+428

+7.0%

Gross profit
ratio

26.3%

27.1%

Cost

4,995

5,236

+241

+4.8%

Operatingprofit

1,117

1,305

+188

+16.8%

Ordinary
profit

1,219

1,459

+240

+19.6%Net income

879

1,308

+429

+48.7%© 2023 MORITO CO., LTD.

20

FY2023 2Q

Trends in Net Sales & Gross Profit Ratio

The gross profit ratio improved due to increased sales of high value-added products.

4Q Total Net Sales

2Q Total Net Sales

Gross Profit Ratio(Million JPY)

50,00030%

Forecast

40,00028%

30,00026%

20,00024%

10,000

22%

0

20%
2013

Where innovation is the norm

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

© 2023 MORITO CO., LTD.

21

FY2023 2Q

Operating Profit

Operating profit: 1,305 million JPY

Y/Y: +188 million JPY (+16.8%)

Increased due to higher gross profit.

(Million JPY)
(Million JPY)

1,117

2022

Where innovation is the norm

FY2023

Net sales

23,207

24,148

+941

+4.1%

Gross profit

6,113

6,541

+428

+7.0%

Gross profit
ratio

26.3%

27.1%

Cost

4,995

5,236

+241

+4.8%

Cost ratio

21.5%

21.7%

OperatingprofitOperatingprofit ratio

1,117

1,305

+188

+16.8%

4.8%

5.4%

Ordinary profit

1,219

1,459

+240

+19.6%Net income

879

1,308

+429

+48.7%

1,305

2023

Increase/
Decrease

FY2022

Y/Y© 2023 MORITO CO., LTD.

22

FY2023 2Q

Ordinary Profit

Ordinary profit: 1,459 million JPY

Y/Y: +240 million JPY (+19.6%)

Increased due to higher operating profit.

(Million JPY)
(Million JPY)

1,219

2022

W here innovation is the norm

1,459

2023

Increase/
Decrease

FY2022

FY2023

Net sales

23,207

24,148

+941

+4.1%

Gross profit

6,113

6,541

+428

+7.0%

Cost

4,995

5,236

+241

+4.8%

1,117

1,305

+188

+16.8%

4.8%

5.4%

1,219

1,459

+240

+19.6%

5.3%

6.0%

Net income

879

1,308

+429

+48.7%Net income
ratio

3.8%

5.4%

OperatingprofitOperatingprofit ratio
Ordinary
profitOrdinary
profit ratio

Y/Y© 2023 MORITO CO., LTD.

23

FY2023 2Q

Net Income

Net Income: 1,308 million JPY

Y/Y: +429 million JPY (+48.7%)

Increased due to an increase in extraordinary income as a result of saleof investment securities, etc.

(Million JPY)
(Million JPY)

1,308
879

2022

W here innovation is the norm

2023

Increase/
Decrease

FY2022

FY2023

Net sales

23,207

24,148

+941

+4.1%

Gross profit

6,113

6,541

+428

+7.0%

Cost

4,995

5,236

+241

+4.8%

1,117

1,305

+188

+16.8%

1,219

1,459

+240

+19.6%

5.3%

6.0%

Net income

879

1,308

+429

+48.7%Net income
ratio

3.8%

5.4%

OperatingprofitOrdinary
profitOrdinary
profit ratio

Y/Y© 2023 MORITO CO., LTD.

24

FY2023 2Q

Consolidated Balance Sheet(Million JPY)

2022 4Q

2022 4Q

2023 2Q

Liabilities

AssetsCurrent assets

30,4812023 2Q

9,309(- 1,916)

Fixed liabilities

4,278

4,145

13,587

11,53929,157(- 1,324)

7,393

Current liabilities

Total liabilities(- 132)(- 2,048)

Net assets

Fixed assets

19,79019,388(- 402)

Shareholders’equity31,860

Accumulated
othercomprehensive
income4,768

32,733(+873)

4,241(- 527)32(- 23)

Share acquisition rights

55

Total net assets

36,684

Total liabilities andnet assets

50,27137,007(+323)

Total assets

50,271

48,546(- 1,725)

48,546(- 1,725)

Equity ratio 76.2% (FY2022 4Q 72.9%)

W here innovation is the norm

© 2023 MORITO CO., LTD.

25

FY2023 2Q

Consolidated Cash Flow Statement(Million JPY)

2022 2Q
Cash and cash equivalents at beginning of
period2023 2Q

11,020

10,396

Cash flows from operating activities

161

1,160

Cash flows from investing activities

(204)

112

Cash flows from financing activities(1,187)

(709)

215

(199)

(1,015)

363

-

-

-

-

10,005

10,759Effect 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

W here innovation is the norm

© 2023 MORITO CO., LTD.

26

5
FY2023.11 2Q Business Overview

W here innovation is the norm

© 2023 MORITO CO., LTD.

27

FY2023 2Q

Net Sales by Region(Million JPY)

Japan

16,108

2022

Y/Y

Asia

17,3282023+1,220 million JPY(+7.6%)

W here innovation is the norm

Europe & the U.S.

Y/Y

4,097

3,583

2022

2023

-514 million JPY(-12.5%)

3,000

3,236

2022

2023

Y/Y

+236 million JPY(+7.9%)© 2023 MORITO CO., LTD.

28

FY2023 2Q

Net Sales for Apparel BusinessNet sales: 11,231 million JPY

Y/Y: +663 million JPY (+6.3%)

Sales of accessories for athletic shoes were strong.
Demand remained stagnant and inventories continued to pile up as consumption
dropped off, especially for products sold in the European and U.S. markets.

(Million JPY)

Japan

7,000

･ Decrease in accessories for medical wear sold in Europe and theU.S.
･ Increase in accessories for working wear, athletic shoes, and bags

6,000
5,000

Asia
4,000
3,000

･ Increase in accessories for baby wear in China and Hong
Kong

2,000

･ Increase in accessories for athletic shoes and working-wearrelated products in Vietnam

1,000･ In China and Hong Kong, decrease in accessories for casual
wear and working wear sold in Europe and the U.S.

0
1Q

2Q

3Q
2022

Japan

Where innovation is the norm

4Q

1Q

2Q
2023

Asia

Europe & the U.S.

Europe & the U.S.
･ Decrease in accessories for casual wear
･ Increase in accessories for leisure products© 2023 MORITO CO., LTD.

29

FY2023 2Q

Net Sales for Product BusinessNet sales: 9,313 million JPY

Y/Y: +332 million JPY (+3.7%)

Demand remained steady for products sold in Japan.
Sales were also robust for kitchen appliance rentals as well as medical devicerelated and other high-value-added products.
(Million JPY)

6,000

Japan

5,000

･ Increase in medical device-related products･ Increase in products for one-coin shops･ Increase in snowboarding and outdoor products･ Increase in kitchen appliance rental, sales, and cleaning
business

4,000

3,000

2,000

1,000

Asia
0
1Q

2Q

4Q

3Q
2022

Japan

W here innovation is the norm

1Q

2Q

･ On a par with last year

2023
Asia

Europe & the U.S.

© 2023 MORITO CO., LTD.

30

FY2023 2Q

Net Sales for Transportation BusinessNet sales: 3,603 million JPY

Y/Y: -53 million JPY (-1.5%)

Automotive production was still below the pre-pandemic level, but the impact of thesemiconductor shortage lessened.
In China, however, sales declined due to the withdrawal from unprofitable businesses.
(Million JPY)

2,500

Japan
･ Increase in automotive interior components for Japanese
automotive manufacturers

2,000

1,500

Asia
1,000

･ Decrease in automotive interior components forJapanese automotive manufacturers in China

500

0
1Q

2Q

4Q

3Q
2022

Japan

W here innovation is the norm

1Q

2Q
2023

Asia

Europe & the U.S.

Europe & the U.S.
･ Increase in automotive interior components for Japanese
automotive manufacturers© 2023 MORITO CO., LTD.

31

Net Sales by Region (Quarterly)

FY2023 2Q(Million JPY)

FY2023First-halftotalComposition

Increase/
Decrease

Y/Y

8,826

17,32871.8%+1,220

+7.6%

1,719

1,864

3,583

14.8%

-514

-12.5%

Europe &the U.S.

1,582

1,654

3,236

13.4%

+236

+7.9%

Total

11,804

12,344

24,148100.0%

+941

+4.1%

1Q

2Q

Japan

8,502

Asia

FY2022
1Q

2Q

First-half
total

3Q

4Q

Japan

7,912

8,196

16,108

8,031

9,377

33,516

Asia

2,212

1,885

4,097

2,180

2,063

Europe &the U.S.

1,436

1,564

3,000

1,755

Total

11,561

11,64623,207

11,965

W here innovation is the norm

Increase/
Decrease

Y/Y

69.1%

+3,287+10.9%

8,340

17.2%

+286

+3.6%

1,866

6,621

13.7%

+1,268+23.7%

13,306

48,478100.0%+4,842+11.1%

Full year Composition© 2023 MORITO CO., LTD.

32

FY2023 2Q

Sales Composition by Region

2022 2Q

2023 2Q
Europe &the U.S.
13%

Europe &the U.S.
13%

Asia 18%

Asia 15%

Japan
69%

Japan
72%

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

Where innovation is the norm

© 2023 MORITO CO., LTD.

33

Sales Composition by Region & Business

FY2023 2Q

2022 2Q

2023 2Q

Europe & the
U.S. 14%
Asia
30%

Asia
4%

Europe & the
U.S. 19%

Asia
13%

Japan
56%

Japan
51%

TR
16%

Asia
3%

Japan
68%

Japan
52%
TR
15%

AP
45%
PD
39%
Japan
96%

AP
46%
Asia
25%

Europe & the
U.S. 23%

PD
39%
Japan
97%

Asia
25%

Europe & the
U.S. 23%

The percentage for the transportation business decreased due to thewithdrawal from unprofitable businesses in Asia.

W here innovation is the norm

© 2023 MORITO CO., LTD.

34

FY2023 2Q

Forecast & Progress

Made steady progress due to recovery in domestic demand. Sluggish demand, especially inEurope and the U.S., remains a cause for concern in the second fiscal half.

FY2023 Full-Year
Forecast

FY2023 2Q

Progress

Net sales

24,14850,00048.3%

Operating profit

1,305

2,300

56.7%

Operating profit
ratio

5.4%

4.6%

Ordinary profit

1,459

2,450

Ordinary profit ratio

6.0%

4.9%

Net income

1,308

1,800

Net income ratio

5.4%

3.6%

Where innovation is the norm

59.6%

72.7%

© 2023 MORITO CO., LTD.

35

6
Business Topics

W here innovation is the norm

© 2023 MORITO CO., LTD.

36

“Rideeco” Environmental Initiative
We continue to focus on the development and sales of products using fabrics and materials madefrom discarded fishing nets.
In May 2023, Rideeco was featured in the special Coral Reef Show Window exhibit at the Kaiyukan
Aquarium in the city of Osaka’s Minato Ward. The exhibit showcased fashion items made fromrecycled marine plastics all displayed in an emptied aquarium tank.

Where innovation is the norm

© 2023 MORITO CO., LTD.

37

Group Company

MORITO DANANG (Apparel, Product, and Transportation Businesses)

The company was established in 2010 in Da Nang, Vietnam as a manufacturing arm of the Morito Group.
It has factories in Vietnam and other Southeast Asian countries to meet the needs of various
manufacturers seeking local procurement.
It is expanding sales and production as local procurement needs have increased in recent years due to
COVID-19, etc.

Where innovation is the norm

© 2023 MORITO CO., LTD.

38

Group Company

MORITO DANANG (Apparel, Product, and Transportation Businesses)

Equipped with manufacturing facilities centering on sewing, the company has seen growing sales ofathletic shoes, medical uniforms, sanitary hats used in food, pharmaceutical, and precision

machinery factories, etc.
The company also invested in equipment to expand the scale of production.

Where innovation is the norm

© 2023 MORITO CO., LTD.

39

Strong Sales of Outdoor Product Materials with Excellent Functionality(Apparel Business)

Sales of materials for outdoor brands, which focus on materials with superior functionality, are strong.
In the first half of 2023, a number of our lightweight and durable materials were adopted by global

outdoor brands.

W here innovation is the norm

© 2023 MORITO CO., LTD.

40

Strategies to Increase Brand AwarenessA segment sponsored by Morito with

We continue to provide

advertisements is aired on “Saturday

information to individual investors

Junction,” a radio program jointly

via IR seminars and more.

produced and broadcast by three FM

stations in Kyoto, Osaka, and Kobe.

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(FYI) Media Coverage● The interview with the president was published in The
Worldfolio and Newsweek (international edition).
https://www.theworldfolio.com/interviews/the-small-products-that-make-worldof-diﬀerence/5649/● Articles about the joint event with Kaiyukan were published on Yahoo! News and NHK
News Web.
https://www3.nhk.or.jp/kansai-news/20230512/2000073625.html
https://news.yahoo.co.jp/articles/dcaa32bb2cccdcef50b6bc8746c37edd7bdbf36d● The Morito Group’s initiative was featured in a booklet for business operators outlining
the results of Osaka Prefecture’s FY2022 Seeds of Environmental and Energy
Technology Survey and Awareness-Raising Project.
https://www.pref.osaka.lg.jp/attach/44690/00445984/handbook_gaiyo.pdf

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7
Shareholder Returns

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Basic Dividend Policy
The basic policy was revised in FY2023.
We regard returning profits to shareholders as one of the most important management issues, anddetermine the amount of dividends based on the following policy, taking into consideration
investment projects and financial conditions(net assets, etc.). (Beginning in FY2023)

Realize stable andcontinuous dividend
payments

Aim for a dividend on
equity (DOE) ratio of

Dividend
payout ratio of

50% or morein relation to profit
attributable to ownersof parent is thestandard*

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4.0%
(on a consolidated
basis)* In a fiscal year with a significant fluctuation inafter-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 thecorresponding impact.

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Trends of Dividend, Dividend Payout Ratio & DOE

We adopted a revised basic dividend policy in FY2023.
60.0

Commemorative
Dividend (JPY)

50.0
Forecast

Annual Ordinary
Dividend (JPY)

40.0
30.0

Net income (100million JPY)

20.0
Forecast

10.0
0
2017

2018

2019

2020

2021

2022

2023 (forecast)

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

Net income (100 Million
JPY)
Annual dividend pershare (JPY)Interim dividend pershare (JPY)
Year-end dividend pershare (JPY)

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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 madewith information known as of the day of presentation and contain some potential risks anduncertainties.
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.

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

E-mail: ir@morito.co.jp© 2023 MORITO CO., LTD.

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Where innovation is the norm

W here innovation is the norm

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