(Unaudited)

July 11, 2017
MORITO CO., LTD.
Financial Statement (Unaudited)
For the Second Quarter of the Fiscal Year ended November 30, 2017
(Translated from the Japanese original)
Corporate Information
Code：9837 Listings in 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:

July 14, 2017
August 9, 2017
Yes
Yes
(Amounts rounded down)
1. Consolidated Financial Results for the Second Quarter of Fiscal Year 2017(December 1, 2016 throughMay 31, 2017)(1) Consolidated Financial Results(Percentages indicate year-on-year changes)
Net sales
Operating income
Ordinary income
Net income%%%%
Millions of yen
Millions of yen
Millions of yen
Millions of yen
2Q of FY 2017
20,057 △1.4
659
673
16.1
3,217
804.6
△6.6
2Q of FY 2016
20,332 △5.1
706 △19.2
580 △43.5
355 △31.1(Note) Comprehensive income : 4,323million yen (－%) (2Q of FY 2017)

2Q of FY 2017
2Q of FY 2016

Net income
Per shareYen
115.2612.47△641million yen (－%) (2Q of FY 2016)

Fully diluted net
Income per share
Yen－－(2) Consolidated Financial Position
Total assets
Millions of yen
2Q of FY 2017
43,578FY 2016
40,853

Net assets
Millions of yen
32,59329,260(Reference) Equity capital : 32,569million yen (2Q of FY 2017)

Equity ratio
%
74.7
71.6

29,246 million yen (FY 2016)

2. Dividends

FY 2016
FY 2017
FY 2017(Forecast)(Note)

First
quarter-end
Yen－－

Dividends per share
SecondThird
Fiscalquarter-end
quarter-end year-end
Yen
Yen
Yen
8.00
9.00
－
14.00
－

14.00

Total
(Annual)
Yen
17.00
28.00

Revision of consolidated earnings forecast to the latest announcement : None

(Unaudited)

3. Consolidated Forecast for FY 2017 (December 1, 2016 through November 30, 2017)(Percentages represent changes from corresponding period of previous year)
Net Sales
Millions ofyen%OperatingincomeMillionsof yen%Ordinary profit
Millions ofyen%

Net income
Millions ofyen

Net income
per share%

Yen

Full year
43,000 7.3
1,800 1.8
1,700 3.3
3,000
154.0
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 5 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, 2017)30,800,000 shares(as of November 30, 2016)(ii) Number of shares of treasury stock at end of period:
3,135,800 shares(as of May 31, 2017)
2,349,000 shares(as of November 30, 2016)(iii) Average outstanding number of shares during the period:
27,915,850 shares(The 2Q of FY 2017)
28,520,205 shares(The 2Q of FY 2016)*This financial summary does not need to undergo an audit.
*Disclosure and other special notes regarding performance forecasts
The forecast in this statement is 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 “1. 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,
the shares held by Trust and Custody Service Bank, ltd. and The Master Trust Bank of Japan, ltd. are includedin 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 .....................................5
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(3) 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

(Unaudited)

1. Qualitative Information for the Period under Review(1) Business Performance
In the Second quarter (From 1st December, 2016 to 31st May, 2017) of the fiscal year ended November 30th,
2017, the Japanese economy has shown signs of modest recovery by improving employment situation andincome. However, the economy situation was still unstable due to uncertain economic situation of emerging
countries and risk of rapid exchange fluctuations in unstable 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, and will promote therealization 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 reaches net sales ¥20,057million (decreased by 1.4% from ayear earlier), operating income ¥659 million (decreased by 6.6% from a year earlier), ordinary income ¥673
million (increased by 16.1% from a year earlier), net income ¥3,217 million (increased by 804.6% from a year
earlier).
The exchange rate used for the oversea subsidiaries’ consolidated financial statement of the current quarterend as below:
USD
EUR
RMB
HKD
TWD
VND
THB

1Q Oct-Dec
109.43 (120.54)
117.86 (131.67)
15.99 (18.34)
14.11 (15.55)
3.45 (3.68)
0.0048 (0.0053)
3.09 (3.35)

2Q Jan-Mar
113.61 (112.69)
121.04 (127.57)
16.56 (17.39)
14.64 (14.53)
3.66 (3.50)
0.0050 (0.005)
3.24 (3.20)*() is the exchange rate of FY2016.
*We have changed the method which is that Income and Expense 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.
Please refer to “2. Matters Concerning Summary Information, (3) Changes in accounting policy, Changes inaccounting estimates and Revision restated” on page 5 of the Attachment.
Segment information as below[Japan]As for the apparel division, sales of the accessories for uniform/working wear and ladies wear were increased,
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 kitchen supplies were increased, but sales of the accessories for shoes andvideo equipment were decreased.
As a result, net sales were ¥13,883 million (increased by 0.9% from a year earlier).
[Asia]
As for the apparel division, sales of the accessories for US and EU apparel manufacturers in Hong Kong weredecreased.
In the consumer product division, sales of the automobile interior component for Japanese auto makers inShenzhen, and sales of accessories for video equipment in Thailand were decreased.
As a result, net sales were ¥3,423 million (decreased by 5.4% from a year earlier) including effect of Japan yen
appreciation.
4

(Unaudited)[Europe and the U.S.]
As for the apparel division, sales of the accessories for domestic market in the U.S. were 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 ¥2,749 million (decreased by 7.0% from a year earlier) including effect of 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.

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 of accounting dateinto Japanese yen up to now. However, the method, which is that Income and Expense in overseas subsidiaries
has been converted by average number of exchange rate into Japanese yen, is applied from the first quarter ofthis fiscal year. The purpose for this change was to take 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 second quarter of previous 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 of March 28, 2016),
have been applied from the first quarter of the fiscal year under review.

5

(Unaudited)

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets
FY 2016(As of November 30, 2016)
Thousands of yen
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

6

FY 2017(As of May 31, 2017)
Thousands of yen

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

12,569,495
10,106,088
4,286,176
1,068,008△31,878
27,997,889

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

2,624,954
3,199,534
5,824,488

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

3,151,547
1,326,150
4,477,698

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

4,189,570
223,718
919,546△70,181
5,262,654
15,564,840
16,104
43,578,834

(Unaudited)

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

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-sale securities

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

7

FY 2017(As of May 31, 2017)
Thousands of yen

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

4,096,400
130,000
400,000
348,779
726,143
139,789
57,688
1,123,384
7,022,186

1,400,000
161,081
17,37530,43335,05918,133918,021
1,695,603
4,275,706
11,592,772

1,200,000－
26,55437,33343,305
20,120925,199
1,710,722
3,963,235
10,985,421

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

3,532,492
3,498,724
25,020,578△1,970,204
30,081,590

1,336,046
861△1,280,438△463,484△112,982△519,998
14,408－29,260,863
40,853,636

1,404,655
64621,625557,244△95,3482,488,241
23,581－
32,593,413
43,578,834

(Unaudited)(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated statements of income
The Second Quarter accounting period
FY 2016
FY 2017(December 1, 2015 through (December 1, 2016 throughMay 30, 2016)
May 30, 2017)
Thousands of yen
Thousands of yen
Net sales
20,332,540
20,057,043
Cost of sales
15,067,388
14,681,976
Gross profit
5,265,151
5,375,146
Total selling, general and administrative expense
4,558,884
4,715,146
Operating Income
706,266
659,919
Non-operating income
Interest received
11,93011,908Dividends received
38,79032,424
Rent on real estate
38,54525,869Equity in earnings of affiliates
26,82832,093
Other non-operating income
10,59832,659Total non-operating income
126,693
134,956
Non-operating expenses
Interest paid
9,468
3,740
Cash discount on sales
43,75340,827
Foreign Exchange Loss
150,034
11,121Others non-operating expense
49,40965,511
Total non-operating expense
252,666
121,201
Ordinary Income
580,293673,674
Extra ordinary income
Gains on sales of fixed assets
7,521
3,291,757
Gains on sales of investment securities
21,712－
Total extra ordinary income
29,234
3,291,757
Extra ordinary loss
Loss on sales of fixed assets
7,138
576
Loss on disposal of fixed assets
1,566
52,068Loss of business restructuring－
8,963
Loss on golf membership rights－
700
Total extra ordinary loss
8,704
62,308Net income before taxes and other adjustment
600,823
3,903,124Corporate, inhabitant and business taxes
404,839
719,711
Adjustments to corporate and other taxes△159,686△34,157
Total income taxes
245,152
685,554
Net income
355,671
3,217,570
Profit(Loss) attributable to non-controlling interests－－
Profit(Loss) attributable to owners of parent
355,671
3,217,570

8

(Unaudited)

Consolidated Statements of Comprehensive Income

Net Income
Other comprehensive income
Unrealized gain(loss) on available-for-sale securities

Deferred gains or losses on hedges
Land revaluation difference amountForeign 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

9

FY 2016(December 1, 2015
through
May 30, 2016)
Thousands of yen
355,671

FY 2017(December 1, 2016
through
May 30, 2017)
Thousands of yen
3,217,570△278,150
160
20,050△724,016△15,272△997,227△641,556

68,609△796－
1,020,729
17,634
1,106,176
4,323,746△641,556

4,323,746－－

(Unaudited)(3) Consolidated of Cash FlowsFY 2016(December 1, 2015
through
May 31, 2016)
Thousands of yen
Cash flows from operating activities
Income (loss) before income taxes
Depreciation of amortization
Depreciation of goodwill
Change in provision for bonus
Changes in employee’s retirement benefit asset
Changes in employee’s retirement benefit liability
Changes in director’s retirement benefit liability
Changes in provision for employee’s retirement stock benefit
Changes in provision for director’s retirement stock benefit

Change in allowance for doubtful accounts
Interest income and dividends income
Interest paid
Equity in net income of affiliates
Gains from sale of fixed assets
Gains from sale of investments
Loss on disposal of fixed assets
Loss on business restructuring
Change in account receivable
Change in inventory
Change in account payable
OthersSubtotal
Proceed from interest and dividends income
Payment of interest
Payment of corporate tax
Net cash(used in)provided by operating activities
Cash flows from investing activities
Decrease in time deposit
Increase in time deposit
Purchase of investment securities
Increase of sale for investment securities
Purchase of tangible fixed assets
Proceeds from sale for tangible fixed assets
Purchase of futile current assets
Collection from loans receivable
Payments of lean receivable
OthersNet cash provided by (used in) investing activities
Cash flows from financing activities
Changes in short-term debt
Repayments of lease obligations
Repayments of long-term loans payable
Proceeds from issuance of bonds
Redemption of bonds
Proceeds from sale from treasury stock
Purchase of treasury stock
Payments of dividends
10

FY 2017(December 1, 2016
through
May 31, 2017)
Thousands of yen

600,823
334,236
113,774△56,470
△104
8,630
2,750
7,860
5,683
△18,914△50,7219,468△26,828△383△21,7121,566－
281,244△189,754
59,99259,2881,120,430
51,251△14,803△601,610
555,268

3,903,124
327,292
112,998△41,387
8,613
22,174
6,900
9,178
8,246
△4,983△44,333
3,740△32,093△3,291,180－
52,0688,963
724,247△67,092△342,095△277,055
1,087,326
56,773△6,685△391,403
746,011△266,893
150,201△18,367
31,312△158,665
2,760,336△14,206
43,469△34,780△3,3252,489,082△243,126
190,519△18,527
117,473△278,513
3,900,406△65,907
25,134△7,914
3,619,544△4,700,000△88,311△187,698
1,978,993－
1,412△276,965△220,073△50,000△68,956△187,698－△200,000－△739,244△261,124

(Unaudited)

Net cash used in financing activities
Effects of exchange rate on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Decrease in cash and cash equivalents resulting
from exclusion of subsidiaries from consolidation
Cash and cash equivalents at end of quarter

11△3,492,643△1,507,024△338,660

263,775△786,952

3,122,307

8,858,896

8,322,707△30,508－

8,041,435

11,445,014

(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 Second quarter of FY 2016 (December 1, 2015 through May 31, 2016)
The information on net sales, income or loss, assets and other items by reportable segment(Thousands of yen)
Reportable Segment
Consolidated
Adjustment
Statement(Note 1)
AmountJapan
Asia
EU and US
Total(Note 2)Net Sales
Sales to external－
13,758,499 3,617,989
2,956,051
20,332,54
20,332,540
customers
Inter segment sales and－
1,208,528
958,655
24,631
2,191,815 △2,191,815
transfer
Total
14,967,027 4,576,644
2,980,683 22,524,356 △2,191,815
20,332,540
Segment income
534,762
168,699
144,065
847,527△141,260
706,266(Notes)1. Adjustment of △¥141,260 thousand includes △¥160,500 thousand -corporate expenses that are not distributed
to each reportable segment and other ¥19,239 thousand.
2. The amounts for income or losses in the reportable segments were subsequently adjusted with the amount ofoperating income on the quarterly consolidated profit and loss statement.

2. The Second Quarter of FY 2017 (December 1, 2016 through May 31, 2017)
The information on net sales, income or loss, assets and other items by reportable segment(Thousands of yen)
Reportable Segment
Consolidated
Adjustment
Statement(Note 1)
AmountJapan
Asia
EU and US
Total(Note 2)Net Sales
Sales to external－
13,883,590 3,423,616
2,749,836 20,057,043
20,057,043
customers
Inter segment sales and－1,136,080 1,197,574
30,7392,364,394 △2,364,394
transfer
Total
15,019,670 4,621,190
2,780,576 22,421,437 △2,364,394
20,057,043
Segment income
567,395
172,118
70,638810,152△150,232
659,919(Notes)1. Adjustment of △¥150,232 thousand includes △¥154,263 thousand-corporate expenses that are not distributed
to each reportable segment and other ¥4,030 thousand.
2. The amounts for income or losses in the reportable segments were subsequently adjusted with the amount ofoperating income on the consolidated profit and loss statement.

12