(Unaudited)
July 10, 2015
MORITO CO., LTD.
Financial Statement (Unaudited)
For the Second Quarters of the Fiscal Year ended November 30, 2015
(Translated from the Japanese original)
Corporate Information
Code：9837 Listings：Second 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:

July 15, 2015
August 10, 2015
Yes
Yes (for analyst and institution investors)(Amounts rounded down)
1. Consolidated Financial Results for the Second Quarter of Fiscal Year 2015(December 1, 2014 through May 31, 2015)(1) Consolidated Financial Results(Percentages indicate year-on-year changes)

Net sales
2Q of
FY 2015
2Q of
FY 2014(Note)
2014)

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

21,418

24.6

874

30.5

1,026

49.4

516

△14.0

17,189

10.8

669

11.7

687

△17.3

600

19.0

Comprehensive income: 2,141million yen (134.6%)

Net income
Per share
Yen
17.83

(2Q of FY 2015)

912million yen (△51.5%) (2Q of FY

Fully diluted net
Income per share
Yen
-

2Q of
FY 2015
2Q of
20.72
FY 2014(Note) On July 1, 2014, Morito conducted a two-for-one split on shares of common stock. Consequently, ”net income pershare ” have been computed as if the stock split had been conducted at the beginning of the fiscal year ended November 30, 2014
(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
Millions of yen
Millions of yen%
2Q of
47,614
31,48066.1
FY 2015
FY 201445,59329,48864.7(Reference) Equity capital: 31,480million yen (2Q of FY 2015)
29,488 million yen (FY 2014)
2. DividendsFirstquarterend
Yen-

Dividends per share
SecondThird
Fiscalquarter- quarteryearend
end
end
Yen
Yen
Yen
12.00
6.50
7.00
7.00

Total
(Annual)Yen
14.00

FY 2014
FY 2015
FY 2015(Forecast)(Note)
Revision of consolidated earnings forecast to the latest announcement: None

(Unaudited)
On July 1, 2014, Morito conducted a two-for-one split on shares of common stock. Consequently, Year-end dividends
for fiscal year ended November 30, 2014, are indicated at the amounts after the stock split.
3. Consolidated Forecast for FY 2015 (December 1, 2014 through November 30, 2015)(Percentages represent changes from corresponding period of previous year)
Net Sales
Operating income
Ordinary profit
Millions of yen%
Millions of yen%
Millions of yen%
Full year
43,000
19.9
2,000
39.9
2,100
21.4
Net income
Net income per share
Millions of yen%
Yen
Full year
1,400
10.2
48.32
(Note)
Revision of consolidated earnings forecast to the latest announcement: No*Notes(1) Changes of important subsidiaries during the period (changes of specific subsidiaries in accordance with changes in thescope 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:
Yes(ii)
Changes in accounting policies other than (i):
None
(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 May 31, 2015)
30,800,000 shares (as of November 30, 2014)(ii) Number of shares of treasury stock at end of period:
1,826,506 shares(as of May 31, 2015)
1,826,516 shares(as of November 30, 2014)(iii) Average outstanding number of shares during the period:
28,973,489 shares(the Second quarter of FY 2015)
28,973,560 shares(the Second quarter of FY 2014)(Note) On July 1, 2014, Morito conducted a two-for-one split on shares of common stock. Consequently, the number of endof the period treasury stock shares, and the average number of shares during the period are calculated on the assumption thatthe said stock split was implemented at the beginning of the previous fiscal year.
*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 whenusing the forecasts and criteria conditioned upon the forecasts, please refer to”1Qualitative 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”. Consequently, the shares held by Trustand 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 ...............................................................................................4(1) Business Performance ..........................................................................................................................................4(2) Forecast of Consolidated Business Results and Other Forward-looking Information .................................................4
2. Matters Concerning Summary Information .............................................................................................................5(1)Changes in Important Subsidiaries during the period under Review .........................................................................5(2)Adoption of Special Accounting Treatment for Preparing Quarterly Consolidated Financial Statement .......................5(3)Changes in Accounting Policies, Changes in Accounting Estimates and Revision Restated ........................................5(4)Additional Information .........................................................................................................................................5
3. Quarterly Consolidated Financial Statements ..........................................................................................................6(1)
Quarterly Consolidated Balance Sheets ...........................................................................................................6(2)
Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ...............8
Quarterly Consolidated statements of income .............................................................................................................8
Quarterly Consolidated statement of comprehensive income ........................................................................................9(3)
Quarterly Consolidated of Cash Flows ..........................................................................................................10(4)
Notes regarding Quarterly Consolidated Financial Statements.........................................................................12[Notes on assumption of going concern] ......................................................................................................................12[Notes on a Significant Change in Shareholders’ Equity] ...............................................................................................12[Segment Information]................................................................................................................................................12[Business Combinations] ............................................................................................................................................13

(Unaudited)

1. Qualitative Information for the Period under Review(1) Business Performance
In the Second quarterly of the fiscal year ended November 30th, 2015, the Japanese economy has shown signs of modest
recovery by weakening yen as a result of additional money easing and higher stock prices concerning the economic policy.
However, the management environment still remains harsh and uncertain because of weakness from consumer sentiment andthe downside risk of the global economy.
In the global economy, the economic recovery of the U.S. and other developed countries economy are expected to continue.
On the other hand, the European debt crisis and slowdown in economic expansion in China are uncertainly.
In such a situation, our group is moving forward a growth strategy by expansion of a global sales channel and production base,under the mid-long term plan ‘Transforming ourselves into a company with global growth’.
As a result, in the current quarterly performance reach net sales ¥ 21,418million (increased by 24.6% from a year earlier),
operating income ¥874 million (increased by 30.5% from a year earlier), ordinary income ¥1,026 million (increased by 49.4%
from a year earlier), net income ¥516 million (decreased by 14.0% from a year earlier).
The exchange rate used for the consolidated financial statement of the current quarter end as below:¥120.27 to the U.S. dollar, ¥130.41 to the euro, ¥19.37 to the Chinese yuan, ¥15.51 to the Hong Kong dollar,¥3.85 to the Taiwan dollar, ¥0.0056 to the Vietnamese dong, ¥3.69 to the Thai baht.
The exchange rate used for the consolidated financial statement of the year earlier quarter end as below:¥102.92 to the U.S. dollar, ¥141.61 to the euro, ¥16.58 to the Chinese yuan, ¥13.27 to the Hong Kong dollar,¥3.38 to the Taiwan dollar, ¥0.0049 to the Vietnamese dong, ¥3.16 to the Thai baht.

Segment information as below[Japan]As for the apparel division, sales of the parts for major retailers and sports apparel manufacturer in Japan, EU and the U.S. areincreased.
In the consumer product division, sales of OEM product for consumer goods and shoes are increased.
As a result, net sales were ¥14,021 million (increased by 4.8% from a year earlier).
[Asia]
As for the apparel division, sales for infant’s wear manufacturer in EU and the U.S. are increased.
In the consumer product division, sales of the parts of healthcare goods for Europe and America and sales of the automobileinterior component for Japanese auto makers are increased.
From the current fiscal year, the performance of GSG (SCOVILL)FASTENERS ASIA LIMITED and SCOVILL FASTENERS
INDIA PVT. LTD which became consolidated subsidiaries of our group are reflected.
As a result, net sales were ¥4,036 million (increased by 55.3% from a year earlier).
[Europe and the U.S.]
As for the apparel division, sales of the parts for medical industry increased in the U.S.. Also, sales of the parts for working
wear in Europe increased.
In the consumer product division, sales of automobile interior article for Japanese automobile manufacture in the U.S. Also,
sales of automobile interior article for Europe automobile manufacture and component for camera in Europe increased.
From the current fiscal year, the performance of GSG FASTENERS, LLC and SCOVILL FASTENERS UK LIMITED whichbecame consolidated subsidiaries of our group are reflected.
As a result, net sales were ¥3,359 million (increased by 177.4% from a year earlier).

(2) Forecast of Consolidated Business Results and Other Forward-looking Information
Currently, there has been no change in the consolidated forecast of FY2015, which was previously announced at January 14 th,
2015.

4

(Unaudited)
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 Accounting Principal)(Adoption of the accounting standard concerning retirement benefit plan)
The company applied “Accounting standard concerning retirement benefit (ASBJ Statement No.26, May 17, 2013)” (hereinafterreferred to as the "Accounting standard of retirement benefit") and “Guideline on accounting standers concerning retirement
benefit (ASBJ Guideline No.25, May 17, 2013” (hereinafter referred to as the “Guideline of retirement benefit”) from the First
quarter of the current consolidated fiscal year. The company has reviewed the calculation of liabilities for retirement benefit andretirement benefit cost and changed service period basis as the attribution method to benefit formula from straight-line attribution.
Also, the company changed the determination of the discount rate to the method using the weighted average rate reflected theperiod and the cost which expect payment.
The adoption of the accounting standard of retirement benefit is based on the Accounting Standards for retirement benefit No.37.
The impact of this change was adjusted for retained earnings.
As a result, assets for retirement benefit were ¥115,476 thousand, liability for retirement benefit were ¥50,643 thousand andretained earnings were increased ¥41,752 thousand at the beginning from the First quarter of the current consolidated fiscal year.
The impact on Second quarter earnings as a result of this change was insignificant.
(4)Additional Information(The Transaction for the Board Incentive Plan Trust)
The Board Incentive Plan Trust was approved by the general shareholders meeting held on February 26, 2015. The main
objective of this scheme is to increase the board members’ motivation to make contributions to improve business performance andincrease enterprise value.
Trust transaction is accounted based on “Practical handling concerning the delivering of company outstanding shares to
employee through the trust” (ASBJ PITF No.30 of March 26, 2015).
(1) Summary of the Transaction
This system is a performance-based stock compensation which delivers treasury stock to directors by level of achievement
for sales and operating profit of each fiscal year. However, board member may receive the grant of the company shares at
the time of retirement.
(2) Remaining treasury stock in the trust
Remaining treasury stock in the trust is recorded in net assets as treasury stock by book value of the trust.
The book value of the treasury stock at the end of the second quarter of current fiscal year is ¥168,000 thousand.
The number of the treasury stock at the end of the second quarter of current fiscal year is 175 thousand.

5

(Unaudited)3.

Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets
FY 2014(As of November 30, 2014)
Thousands of yen

FY 2015(As of May 31, 2015)
Thousands of yen

AssetsCurrent assets
Cash and deposits

7,862,616

8,220,681

Notes and accounts receivable

10,388,944

10.653,634

Inventory

4,557,407

4,750,906

Other current assets

1,445,161

1,262,237

Allowance for doubtful accounts
Total current assets△36,023
24,218,105△40,458
24,847,000

6,158,454
3,953,100
10,111,554

6,174,500
4,208,384
10,382,885

4,210,819

3,814,157

Other Intangible fixed assets

490,811

1,586,347

Total intangible fixed assets

4,701,630

5,400,505

5,262,788

5,822,032

238,158

354,495

Other fixed assets

1,190,897

935,100

Allowance for doubtful account△129,635△127,407

Total investments and other fixed assets

6,562,209

Fixed assets
Tangible fixed assets
Land
Other tangible fixed assets
Total tangible fixed assets
Intangible fixed assets
Goodwill

Investments and other fixed assets
Investment securities
Net defined benefit asset

Total fixed assets

21,375,394

6,984,221
22,767,611

Total assets

45,593,500

47,614,612

Notes and accounts payable

4,588,697

4,486,667

Short-term loans payable

4,960,000

4,970,000

Current portion of long-term debt

375,396375,396

Accrued tax payable

313,950

506,487

Reserve for bonuses

136,269

116,545

Reserve for director’s bonuses

48,10084,221Other current liabilities

1,460,848

1,312,796

Total current liabilities

11,883,262

11,852,114

Long-term debt

911,873

724,175

Provision for director’s retirement benefit

129,608

54,008Reserve for benefit allowance

4,626

10,804

Provision for environmental measures

23,65826,370Liabilities
Current liabilities

Fixed liabilities

6

(Unaudited)
Net defined benefit liability

752,563

801,187

Other fixed liabilities

2,399,103

2,665,098

Total fixed liabilities

4,221,432

4,281,643

16,104,695

16,133,757

Capital3,532,492

3,532,492

Capital surplus

3,395,115

3,498,720

Retained earnings

21,364,202

21,749,804

Treasury stock△680,993△784,589

Total shareholders’ equity

27,610,816

27,996,427

Total liabilities
Net Assets
Shareholders' equity

Other comprehensive income
Valuation difference on available-for-sale securities

1,812,097

2,377,011

Deferred gains or losses on hedges△1,853△872

Difference in revaluation of land

△586,591△528,197

Foreign currency translation adjustment

545,742

1,541,439

Remeasurement of defined benefit plans

108,593

95,046

1,877,988

3,484,427--

Total net assets

29,488,805

31,480,854

Total liabilities and net assets

45,593,500

47,614,612

Total other comprehensive income
Minority interests

7

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

Net sales
Cost of sales

FY 2014(December 1, 2013 throughMay 31, 2014)
Thousands of yen
17,189,916
12,780,869

FY 2015(December 1, 2014 throughMay 31, 2015)
Thousands of yen
21,418,115
15,945,011

Gross profit

4,409,046

5,473,103

Total selling, general and administrative expense

3,739,073

4,598,955

669,973874,148

Interest received

11,305

11,716

Dividends received

22,341

44,184

Rent on real estate

37,17938,499Foreign exchange gains

2,234

66,427

Equity in earnings of affiliates

14,72019,681Other non-operating income

21,32367,464

Total non-operating income

109,104

247,972

Interest paid

4,844

10,740Cash discount on sales

48,69543,584

Others non-operating expense

38,31340,878

Total non-operating expense

91,852

95,203

687,225

1,026,918

Gains on sales of fixed assets

265,335

158,629

Gains on sales of securities

116,099

76,953

Total extra ordinary income
Extra ordinary loss
Loss on sales of fixed assets
Loss on disposal of fixed assets
Loss on liquidation affiliates
Total extra ordinary loss

381,435

235,583

3,047
49,17052,2171,140
8,613
301,721311,475

1,016,443

951,025

Corporate, inhabitant and business taxes

397,515494,668

Adjustments to corporate and other taxes

18,605△60,204

Total income taxes

416,121434,463

Income before minority interest

600,321516,562

600,321516,562

Operating Income
Non-operating income

Non-operating expenses

Ordinary Income
Extra ordinary income

Net income before taxes and other adjustment

Minority interest
Net income8(Unaudited)

Quarterly Consolidated statement of comprehensive income

Income before minority interests
Other comprehensive income

FY 2014(December 1, 2013 throughMay 31, 2014)
Thousands of yen
600,321

FY 2015(December 1, 2014 throughMay 31, 2015)
Thousands of yen
516,562

92,039△398-

564,914980
76,556995,696△13,547

312,326

1,624,601

912,648

2,141,163

912,648

2,141,163--

Other gain(loss) on available-for-sale securities
Deferred gains or losses on hedges
Difference in revaluation of land
Foreign currency translation adjustment
Remeasurements of defined benefit plans

220,685

Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attribute to the parent
Comprehensive income attribute to the minority
shareholders

9(Unaudited)(3) Quarterly Consolidated of Cash FlowsFY 2014(December 1, 2013 throughMay 31, 2014)
Thousands of yen

FY 2015(December 1, 2014 throughMay 31, 2015)
Thousands of yen

Cash flows from operating activities
Income (loss) before income taxes

1,016,443

951,025

Depreciation and amortization

199,978

346,515-

118,803

Change in provision for bonus△25,063△24,160

Change provision for retirement benefits△43,741-

Changes in net defined benefit asset-△116,336

Changes net defined benefit liability-

48,624△59,029△75,600

Changes in reverse for employee stock ownership plan

5,478

6,177

Change in allowance for doubtful accounts

2,258

1,348

△33,646△55,900

Amortization of goodwill

Change in reverse for retirement benefits for officers

Interest income and dividends income
Interest paid

4,844

10,740Equity in net income of affiliates△14,720△19,681

Gains from sale of fixed assets△265,335△157,489

Gains from sale of investment securities
Loss on disposal of fixed assets
Loss on liquidation of affiliates
Change in notes and accounts△116,099
3,047
49,170108,552△76,953
8,613
301,721
26,462

Change in inventory△196,802

16,98848,072△339,745

Others△105,234

63,562

Subtotal

578,170

1,034,718

Proceed from interest and dividends income

33,46056,047

Payment of interest△5,404△11,288△359,112△280,392

247,113

799,085

Decrease in time deposit△8,788△24,196

Purchase of investment securities△7,803△18,241

Increase of sale for investment securities

145,000

194,847

Purchase of stocks of Subsidiaries△850,748△261,500

Purchase of tangible fixed assets△296,877△325,465

Proceeds from sale for tangible fixed assets

390,176

212,665

Purchase of intangible fixed assets△24,667△6,923

Proceeds from loans receivable

27,40230,026△16,753△14,743△643,060△213,521

100,000

10,000Change in account payable

Payment of corporate tax
Net cash(used in)provided by operating activities
Cash flows from investing activities

OthersNet cash provided by (used in) investing activities
Cash flows from financing activities
Changes in short-term debt

10

(Unaudited)
Repayments of lease obligations△62,840△76,215

Proceeds from long-term loans payable

1,500,000-

Repayment of long-term loans△25,033△187,698

Proceeds from sale from treasury stock-

168,009

Payments to acquire treasury stock-△168,000△161,510△190,875

1,350,615△444,779

Effects of exchange rate on cash and cash equivalents

68,499135,477

Net increase (decrease) in cash and cash equivalents

1,023,168

276,261

Cash and cash equivalents at beginning of year

6,366,363

6,847,667

Cash and cash equivalents at the end of the period

7,389,532

7,123,928

Payments of dividends
Net cash used in financing activities

11(Unaudited)(4) 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 2nd quarter of FY 2014 (December 1, 2013 through May 31, 2014)
The information on net sales, income or loss, assets and other items by reportable segment

Japan

Net Sales
Sales to external customers
Inter segment sales andtransfer
Total

Reportable Segment
Asia
EU and US

Total(Thousands of yen)
Adjustment
Consolidate(Note 1)dStatement
Amount(Note 2)

13,378,782

2,599,959

1,211,173

17,189,916-

17,189,916

1,130,806
14,509,588

1,158,743
3,758,702

1,650
1,212,824

2,291,199
19,481,116△2,291,199△2,291,199

17,189,916

Segment income
550,245
158,542
108,001
816,789△146,815
669,973(Notes)1. Adjustment of ¥△146,815 thousand includes ¥△143,397 thousand -corporate expenses that are not distributed to eachreportable segment and other ¥△3,418 thousand.
2. The amounts for income or losses in the reportable segments were subsequently adjusted with the amount of operating
income on the quarterly consolidated profit and loss statement.
2.

The 2nd Quarter of FY 2015 (December 1, 2014 through May 31, 2015)
The information on net sales, income or loss, assets and other items by reportable segment

Japan

Reportable Segment
Asia
EU and US

Total(Thousands of yen)
Adjustment
Consolidate(Note 1)dStatement
Amount(Note 2)Net Sales
Sales to external customers
14,021,555
4,036,980
3,359,579
21,418,115
21,418,115
Inter segment sales andtransfer
1,261,527
1,180,898
19,1062,461,532△2,461,532
Total
15,283,083
5,217,878
3,378,685
23,879,647△2,461,532
21,418,115
Segment income
689,422
196,204
180,522
1,066,149△192,000
874,148(Notes)1. Adjustment of ¥△192,000 thousand includes ¥△166,126 thousand-corporate expenses that are not distributed to eachreportable segment and other ¥△25,873 thousand.
2. The amounts for income or losses in the reportable segments were subsequently adjusted with the amount of operating
income on the consolidated profit and loss statement.

12

(Unaudited)[Business Combinations](Business combination through acquisition)
1. Amendments of acquisition cost
The allocation of acquisition cost is completed concerning GSG FASTENERS, LLC which acquired during previous fiscal year.
Subject
Goodwill (Before correction)
Land
The trade markDeferred tax liability
Other adjustment for acquisition
Total
Goodwill (After correction)
2.

Amount3,469,662 thousand yen△59,345△1,032,495
399,61386,084△606,141
2,863,520

The amounts of goodwill, reason for the goodwill, and method and period of amortization(1) The amounts of goodwill¥2,863,520 thousand(2) The reason for the goodwill
The difference was recorded as goodwill because the acquisition cost exceeded the net asset of the acquired
subsidiary.
(3) The method and period of amortization
The straight-line method for 20 year period is used.

3. The amounts of intangible asset, breakdown by segment and method and period of amortization without goodwill(1) The amounts of intangible asset¥1,032,495 thousand(2) Breakdown by segment
The trade mark¥1,032,495 thousand(3) The method and period of amortization
The straight-line method for 20 year period is used13