MORITO CO., LTD.

Presentation Materials for the Nine
Months of the Fiscal Year Ending
November 30, 2023, Financial Results
Where innovation is the norm

Prime Market of TSE: 9837
October 2023

© 2023 MORITO CO., LTD.

CONTENTS

1

Company Profile

2

Medium- and Long-term Policy

3

8th Mid-term Management Plan

4

FY2023.11 3Q Financial Results

5

FY2023.11 3Q 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 ofeyelets and snap fasteners･ Later expanded operations mainly for sales of
MAGIC TAPE® and other clothing accessories,
automotive interior components, etc.

Eyelets● Trading company with manufacturing functions･ A specialized trading company that handles
everything from planning and development tomanufacturing, wholesale, and distribution

Snap fasteners

MAGIC TAPE®

*Eyelet:A metal ring attached to a hole inshoes, clothing, etc. through which alace or cord is threaded･ Operating 19 locations around the world● 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>

Snap fasteners MAGIC TAPE®

Tape

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

Product Business<Examples of products handled><Examples of products handled>

Buttons

MAGIC TAPE®

Resin parts

Snap fasteners MAGIC TAPE®

In-housebrandsStrapsSkateboards,
snowboards, andsurfboards

InsolesIn-housebrandsEmblems

Trunk floor
lining

Nets

Door armrests<Applications><Applications>

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

Automotive interior components
Railway and Shinkansen interior components
Aircraft interior components

Active sports products

Where innovation is the norm

Transportation Business(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 snap fasteners in Japan, and the highest or second-highest in
the world.
● Global manufacturing, procurement, and sales capabilities
In addition to our own locations, we have partner plants and distributors all over the world, giving us
close proximity to our customers and the ability to respond to their every need.

Where innovation is the norm

© 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

Eyelets,
snap
fasteners,
andshoelaces

MAGIC
TAPE®

Where innovation is the norm

Entering the B2C
marketStrengthening 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)

Transport
ation
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
8th Mid-termManagement
Plan

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

2020–2021

W here innovation is the norm

Building a businessstructure to adapt to the
COVID-19 pandemic• Streamline costs• Enhance profitability• Streamline unprofitable businesses© 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 -> Distribute profits appropriately(3) Improve asset efficiency -> Streamline balance sheet, create cash flows, and actively invest funds(4) Optimize capital structure -> Utilize financial leverage

W here innovation is the norm

© 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 in relation 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 owners ofparent due to special factors such as extraordinary income or losses, the dividend amount will be
determined in light of the corresponding impact.

W here innovation is the norm

© 2023 MORITO CO., LTD.

13

8th Mid-term Management Plan Qualitative Targets (up to FY2026)
Set FY2022–FY2026 quantitative targets for net sales and operating profit at 50,000 million JPY and2,500 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 JPY
Consolidated operating
profit: 2.5 billion JPY

45,98743,943

43,636

41,38850,00048,4783,000

40,72740,08640,000

2,000

2,116
1,767

1,707

1,725

1,734

2,500

2,400

1,000

1,619

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

8th Mid-term Management Plan (5 years)856© 2023 MORITO CO., LTD.

14

4
FY2023.11 3Q Financial Results© 2023 MORITO CO., LTD.

15

FY2023 3Q

Highlights● Demand in Japan remained firm despite sluggish demand due to a slowdown
in consumption in Europe, the U.S., and China, which mostly affected theapparel business.

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

● Awareness about boosting profit margins has continued to increase since
the company split.

● Net sales, operating profit, and ordinary profit for the first nine months hit
all-time record highs since we began reporting quarterly results.

W here innovation is the norm

© 2023 MORITO CO., LTD.

16

FY2023 3Q

Summary of Financial Results(Million JPY)

FY2022

FY2023

Increase/Decrease

Y/Y

Net sales

35,17235,551

+379

+1.1%

Gross profit

9,135

9,607

+472

+5.2%

Gross profit ratio

26.0%

27.0%

Cost

7,549

7,856

+307

+4.1%

Cost ratio

21.5%

22.1%

Operating profit

1,586

1,750

+164

+10.3%

Operating profit ratio

4.5%

4.9%

Ordinary profit

1,747

1,993

+246

+14.0%

Ordinary profit ratio

5.0%

5.6%

Net income

1,242

1,729

+487

+39.2%Net income ratio

3.5%

4.9%

W here innovation is the norm

© 2023 MORITO CO., LTD.

17

FY2023 3Q

Net Sales

Net sales: 35,551 million JPY

Y/Y: +379 million JPY (+1.1%)

Despite the impact of sluggish demand in Europe, the U.S., and China as well as thestreamlining of unprofitable businesses in China, overall sales increased due to stable
domestic demand and a recovery in the transportation businesses in Europe and the U.S.

(Million JPY)

Japan

25,229 million JPY

Y/Y +1,090 million JPY (+4.5%)

Asia
35,17235,551

5,322 million JPY

Y/Y -955 million JPY (-15.2%)

Europe & the U.S.

4,999 million JPY

Y/Y +244 million JPY (+5.1%)
2022

W here innovation is the norm

2023

© 2023 MORITO CO., LTD.

18

FY2023 3Q

Quarterly Financial Trends

Demand slumped in Europe, the U.S., and China in 3Q mainly for the apparel business.

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

2Q
2019

W here innovation is the norm

3Q

4Q

1Q

2Q
2020

3Q

4Q

1Q

2Q

3Q
2021

4Q

1Q

2Q

3Q
2022

4Q

1Q

2Q

3Q

2023

© 2023 MORITO CO., LTD.

19

FY2023 3Q

Gross Profit

Gross profit: 9,607 million JPY

Y/Y: +472 million JPY (+5.2%)

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

(Million JPY)
(Million JPY)

9,135

2022

W here innovation is the norm

Increase/
Decrease

FY2022

FY2023

Y/Y

Net sales

35,17235,551

+379

+1.1%

Gross profit

9,135

9,607

+472

+5.2%

Gross profit ratio

26.0%

27.0%

Cost

7,549

7,856

+307

+4.1%

Operating profit

1,586

1,750

+164

+10.3%

Ordinary profit

1,747

1,993

+246

+14.0%Net income

1,242

1,729

+487

+39.2%

9,607

2023

© 2023 MORITO CO., LTD.

20

FY2023 3Q

Trends in Net Sales & Gross Profit Ratio

The gross profit ratio improved due to rising awareness of profit margins as well as
increased sales of high value-added products.

3Q Total Net Sales(Cumulative)

4Q Total Net Sales(Cumulative)

50,000Gross profit ratio(Million JPY)
30%

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 3Q

Operating Profit

Operating profit: 1,750 million JPY

Y/Y: +164 million JPY (+10.3%)

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

(Million JPY)

FY2022

FY2023

Increase/
Decrease

Net sales

35,17235.551

+379

+1.1%

Gross profit

9,135

9,607

+472

+5.2%

Gross profit ratio

26.0%

27.0%

Cost

7,549

7,856

+307

+4.1%

Cost ratio

21.5%

22.1%

Operating profit

1,586

1,750

+164

+10.3%

Operating profit ratio

4.5%

4.9%

Ordinary profit

1,747

1,993

+246

+14.0%Net income

1,242

1,729

+487

+39.2%(Million JPY)

1,586

2022

Where innovation is the norm

1,750

2023

Y/Y

© 2023 MORITO CO., LTD.

22

FY2023 3Q

Ordinary Profit

Ordinary profit: 1,993 million JPY

Y/Y: +246 million JPY (+14.0%)

Increased due to higher operating profit.

(Million JPY)

FY2022

FY2023

Increase/
Decrease

Net sales

35,17235,551

+379

+1.1%

Gross profit

9,135

9,607

+472

+5.2%

Cost

7,549

7,856

+307

+4.1%

Operating profit

1,586

1,750

+164

+10.3%

Operating profit ratio

4.5%

4.9%

Ordinary profit

1,747

1,993

+246

+14.0%

Ordinary profit ratio

5.0%

5.6%

Net income

1,242

1,729

+487

+39.2%Net income ratio

3.5%

4.9%

(Million JPY)

1,993

1,747

2022

W here innovation is the norm

2023

Y/Y

© 2023 MORITO CO., LTD.

23

FY2023 3Q

Net Income

Net Income: 1,729 million JPY

Y/Y: +487 million JPY (+39.2%)

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

(Million JPY)
(Million JPY)

1,729
1,242

2022

W here innovation is the norm

2023

FY2022

FY2023

Increase/
Decrease

Net sales

35,17235,551

+379

+1.1%

Gross profit

9,135

9,607

+472

+5.2%

Cost

7,549

7,856

+307

+4.1%

Operating profit

1,586

1,750

+164

+10.3%

Ordinary profit

1,747

1,993

+246

+14.0%

Ordinary profit ratio

5.0%

5.6%

Net income

1,242

1,729

+487

+39.2%Net income ratio

3.5%

4.9%

Y/Y

© 2023 MORITO CO., LTD.

24

FY2023

3Q Consolidated Balance Sheet(Million JPY)

2022 4Q

2023 3Q

2022 4Q
Liabilities

AssetsCurrent assets

30,4812023 3Q

9,309

Fixed liabilities

4,278

4,398

Total liabilities

13,587

12,38429,958(- 523)

7,986

Current liabilities(-1,323)(+120)(- 1,203)

Net assets

31,86032,312

Accumulated othercomprehensive income

4,768

5,553

Share acquisition rights

55

Shareholders’ equity

Fixed assets

19,79020,321(+531)

Total assets

50,27150,279(+8)(+452)(+785)

29(- 26)

Total net assets

36,68437,894

Total liabilities andnet assets

50,27150,279(+1,210)(+8)

Equity ratio 75.3% (FY2022 4Q 72.9%)

W here innovation is the norm

© 2023 MORITO CO., LTD.

25

5
FY2023.11 3Q Business Overview

W here innovation is the norm

© 2023 MORITO CO., LTD.

26

FY2023 3Q

Sales Composition by Region(Million JPY)

Japan

24,139Asia

25,229
6,277

2022

Y/Y

2023

+1,090 million JPY(+4.5%)

W here innovation is the norm

Europe & the U.S.

2022

Y/Y

5,322

2023

-955 million JPY(-15.2%)

Y/Y

4,755

4,999

2022

2023

+244 million JPY(+5.1%)© 2023 MORITO CO., LTD.

27

FY2023 3Q

Net Sales for Apparel BusinessNet sales: 16,750 million JPY

Y/Y: +241 million JPY (+1.5%)

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 the U.S. markets.

(Million JPY)

7,000

Japan

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

6,000
5,000
4,000

Asia

3,000

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

2,000
1,000
0
1Q

2Q

3Q

4Q

2022
Japan

Where innovation is the norm

Asia

1Q

2Q
2023

3Q

Europe & the U.S.

Europe & the U.S.

･ Decrease in accessories for casual wear and workwear© 2023 MORITO CO., LTD.

28

FY2023 3Q

Net Sales for Product BusinessNet sales: 13,383 million JPY

Y/Y: +208 million JPY (+1.6%)

Demand remained steady for products sold in Japan.
Sales were also robust for kitchen appliance-related services as well as medical
device-related and other high-value-added products.

(Million JPY)

6,000

Japan

5,000

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

4,000

3,000

2,000

1,000

Asia
0
1Q

3Q

2Q

4Q

2022
Japan

W here innovation is the norm

1Q

2Q

3Q

2023
Asia

･ On a par with last year

Europe & the U.S.

© 2023 MORITO CO., LTD.

29

FY2023 3Q

Net Sales for Transportation BusinessNet sales: 5,417 million JPY

Y/Y: -70 million JPY (-1.3%)

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

(Million JPY)

2,500

Japan
･ Increase in automotive interior components forJapanese automotive manufacturers

2,000

1,500

Asia
1,000

･ Decrease in automotive interior components forJapanese automotive manufacturers in China

500

0
1Q

2Q

3Q

4Q

2022

Japan

W here innovation is the norm

1Q

2Q

3Q

2023

Asia

Europe & the U.S.

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

30

FY2023 3Q

Net Sales by Region (Quarterly)(Million JPY)

FY2023
1Q

2Q

3Q

Ninemonth
total

Japan

8,502

8,826

7,901

25,22971.0%+1,090

+4.5%

Asia

1,719

1,864

1,739

5,322

15.0%

-955

-15.2%

Europe &the U.S.

1,582

1,654

1,763

4,999

14.0%

+244

+5.1%

Total

11,804

12,344

11,40335,551100.0%

+379

+1.1%

Composition

Increase/
Decrease

Y/Y

FY2022
1Q

2Q

3Q

Ninemonth
total

Japan

7,912

8,196

8,031

24,1399,377

33,516

Asia

2,212

1,885

2,180

6,277

2,063

Europe &the U.S.

1,436

1,564

1,755

4,755

Total

11,561

11,646

11,96535,172

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%

4Q

Full year Composition© 2023 MORITO CO., LTD.

31

FY2023 3Q

Sales Composition by Region

2022 3Q

2023 3Q

Europe &the U.S.
13%

Europe &the U.S.
14%

Asia 18%

Asia 15%
Japan
69%

Japan
71%

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

Where innovation is the norm

© 2023 MORITO CO., LTD.

32

FY2023 3Q

Sales Composition by Region & Business

2022 3Q

2023 3Q

Europe & the
U.S. 14%

Asia
14%
Asia
27%

Japan
56%
Asia
4%

Japan
50%
Transportation
16%

Asia
3%

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

Apparel47%
Product 39%

Japan
96%

Japan
52%

Apparel
47%
Asia
26%

Europe &the U.S.
24%

Product 38%

Japan
97%

Asia
25%

Europe &the U.S.
23%

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

W here innovation is the norm

© 2023 MORITO CO., LTD.

33

Revised FY2023 Full-Year Forecast (Consolidated)
Sales of kitchen appliance-related services as well as accessories and products withsuperior functionality, including athletic shoes- and medical device-related products,
will be strong. Operating profit will improve as a result of the enhanced efficiency oflogistics operations and the streamlining of unprofitable businesses. Net income isalso expected to exceed the initial forecast due to the reorganization of overseas
subsidiaries and reduction of cross-shareholdings.

(Million JPY)

Initial FY2023
Forecast

Revised FY2023
Forecast

Increase/
Decrease

Y/Y

Net sales

50,00050,000+0

0.0%

Operating profit

2,300

2,400

+100

4.3%

Operating profit
ratio

4.6%

4.8%

Ordinary profit

2,450

2,700

+250

10.2%

Ordinary profit ratio

4.9%

5.4%

Net income

1,800

2,200

+400

22.2%

Net income ratio

3.6%

4.4%

Where innovation is the norm

© 2023 MORITO CO., LTD.

34

FY2023 3Q

Forecast & Progress

FY2023 3Q

FY2023 Full-Year
Forecast

Progress

Net sales

35,55150,00071.1%

Operating profit

1,750

2,400

72.9%

Operating profit ratio

5.4%

4.8%

Ordinary profit

1,993

2,700

Ordinary profit ratio

6.0%

5.4%

Net income

1,729

2,200

Net income ratio

5.4%

4.4%

73.8%

78.6%

© 2023 MORITO CO., LTD.

35

6
Business Topics

W here innovation is the norm

© 2023 MORITO CO., LTD.

36

Environmental Initiatives “Rideeco®”
We continued to focus on the development and sales of products using fabrics andmaterials made from discarded fishing nets, and our products were adopted by
DOCTORAIR, a total body care brand, for its Blue Life line of products.

STEP

STEP

1

2
Collecting discarded
fishing nets

Sorting andcompressing

Hokkaido area

Hokkaido area
Hokkaidoarea(Fishermen)(Partner factory)(Partnerfactory)

We ask local fishing businesses andfishermen to collect and sort old nets.

Collected nets are sorted bymaterial and compressed.

STEP

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

Cleaning, cutting, heating, and pelletizing

Ichinomiya, Aichi

Click here for more information▶https://www.dr-air.com/jp/ja/bluelife/(Partner company)
Discarded fishing nets are cleaned
and made into recycled pellets.
*Yarn-making process takes place at an
overseas plant.

Where innovation is the norm

© 2023 MORITO CO., LTD.

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Environmental Initiatives

Upcycling with Orix Buffaloes

We started upcycling baseball caps that are going to be discarded after being used byOrix Buffaloes players. Upcycled products will be given to children when team
officials visit schools.

Inspection

Disassembling

Covered buttons
made with cap fabric

A hat that was actually worn by aplayer

Where innovation is the norm

Disassembling into parts

Commuter pass caseswith the team logo fromthe cap© 2023 MORITO CO., LTD.

38

August 2 Happy Parts Day
On August 2, which is designated by the Japan Anniversary Association as Happy
Parts Day, we distributed free samples featuring Morito parts at our PR booth inKyocera Dome and ZOZO Marine Stadium to increase recognition of the Morito brand.
We also hosted an event for group employees to enjoy watching a baseball game incommemoration of our 115th anniversary.

These are glove holder straps made with allsorts of Morito parts such as tape made from

At both stadiums we gave away zipper pulls
that can be attached to a fastener.

discarded fishing nets as well as snap fasteners.

Click here to learn more about the event

Visitors experienced attaching snap fasteners by▶https://note.com/morito_oﬃcial/n/nbe57a0270bf0

themselves.

Where innovation is the norm

© 2023 MORITO CO., LTD.

39

Group Company

Matex Inc.(Apparel Business)

Matex’s main business is printing. In addition to providing general commercial printing services,
the company delivers packaged apparel materials, including labels and tags to be attached tofinished products, worldwide. It developed ASUKAMI ®, a mixed paper made from fabric scraps
generated during production at our apparel-related business partners, for upcycling into paperbags and tags. Matex is also working with high schools and universities on industry-academia
collaboration projects using ASUKAMI ®.

Unwanted paper, fabric scraps
generated from the production
process, collected clothes, etc.
Reuse asnew paperproducts!

Finished paper

Grinding
and papermaking

We hosted an event featuring
ASUKAMI® jointly with Kobe
Women’s University
at Suma Aqualife Park Kobe.

Waste
materials

Collecti
on

Waste materials arecollected and sorted.

Scrap materials are pulverized and then incorporated into the papermaking
process at a paper company to produce original recycled paper.

Fabric scraps
containing synthetic
fibers are made into
tags and paper bags
for apparel products.

Where innovation is the norm

Notebooks and flashcards
made with ASUKAMI®, whichwere developed jointly with
Kansai University Hokuyo
Senior High School© 2023 MORITO CO., LTD.

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MORITO DANANG Still Going Strong (Apparel and Product related Businesses)
MORITO DANANG, our group company based in Da Nang, Vietnam, continues to enjoy growing sales of its
athletic shoes, medical uniforms, as well as sanitary hats used in food, pharmaceutical, and precision machineryfactories, etc. The company produces and sells high-quality products across the globe to meet the needs ofJapanese manufacturers that use the China Plus One strategy (It is to avoid investing only in China and diversify

business into other countries).

Morito Apparel/
Morito Japan
Sales activities

Global sales

Japanesemanufacturers + Morito
Apparel/Morito Japan
Planning anddevelopment

Delivery tocustomers

W here innovation is the norm

MORITO DANANG
Quality control andproduction© 2023 MORITO CO., LTD.

41

(FYI) Media Coverage● An article about our joint initiative with Orix Buffaloes was published on Yahoo! News, etc.
https://news.yahoo.co.jp/articles/0c82079d2eb6ca28841175fa2541f3236f4c1610● Our products and fabrics made from discarded fishing nets were featured on FNN Prime Online,etc.
https://www.fnn.jp/articles/-/550252
https://www.youtube.com/watch?v=N0EkrOS-0rY● Our “is-fit” heel cushion pad was featured in the October issue of“LDK the Beauty” as an editor-recommended product.
https://is-fit.jp/products/footcare/products-76/

W here innovation is the norm

© 2023 MORITO CO., LTD.

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7Shareholder Returns

W here innovation is the norm

© 2023 MORITO CO., LTD.

43

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 ofin relation to profit
attributable to owners ofparent is the standard*

W here innovation is the norm

4.0%

Dividend
payout ratio of
50% or more

(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 the corresponding
impact.

© 2023 MORITO CO., LTD.

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Trends of Dividend, Dividend Payout Ratio & DOE

We adopted a revised basic dividend policy in FY2023.
60.0
Annual Ordinary
Dividend (JPY)50.0

Net income (100million JPY)

Forecast

40.0
Commemorative
Dividend (JPY)

30.0
Forecast

20.0
10.0

2017

2018

2019

2020

2021

2022

2023
(forecast)

33.0

12.5

14.0

4.7

14.0

15.5

22.0

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

65.6

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)

W here innovation is the norm

© 2023 MORITO CO., LTD.

45

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.

4-2-4, Minami Honmachi, Chuo-ku, Osaka 541-0054 Japan

Contact
MORITO CO., LTD.

W here innovation is the norm

E-mail: ir@morito.co.jp
Executive Corporate
Planning Dept.

© 2023 MORITO CO., LTD.

46

Where innovation is the norm

W here innovation is the norm

© 2023 MORITO CO., LTD.

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