Consolidated Financial Results for the Fiscal Year Ended November 30,
2022 [Japanese GAAP]
January 13, 2023
Company name:
Morito Co., Ltd.
Stock exchange listing:Tokyo Stock Exchange
Code number:
9837
URL https://www.morito.co.jp
Representative: Takaki Ichitsubo, Representative Director, CEO
Kiyomi Akui, Director, Senior Executive Officer, Division+81-6-6252Contact:
Manager of Corporate Administrative Division and Division
(TEL)
3551
Manager of Business Management Division
Scheduled date of Annual General
Scheduled date of commencing
February 24, 2023
February 27, 2023
Meeting of Shareholders:
dividend payments:
Scheduled date of filing annual
February 27, 2023
securities report:
Availability of supplementary briefing material on annual financial results : Available
Schedule of annual financial results briefing session : Scheduled (for securities analysts and institutional
investors)(Amounts of less than 1 million yen are rounded down.)

1. Consolidated Financial Results for the Fiscal Year Ended November 30, 2022
(December 1, 2021 to November 30, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales

Operating profit

Million yen%

Million yen

Profit attributable toowners of parent

Ordinary profit%

Million yen%

Million yen%

Fiscal year ended
48,478
11.1
2,116
30.7
2,342
27.7
1,674
19.0
November 30, 2022
November 30, 2021
43,636
7.1
1,619
89.1
1,834
97.6
1,407
199.3
(Note) Comprehensive income:Fiscal year ended November 30, 2022: Fiscal year ended November 30, 2021:¥4,070 million yen [73.4%]¥2,346 million [-%]
Basic earnings per Diluted earnings
share
per share
Yen

Fiscal year ended
62.23
November 30, 2022
November 30, 2021
51.41
(Reference) Share of profit (loss) of entities
accounted for using equity method:

Return on equity

Ordinary profit to Operating profit tototal asset
net sales

Yen

%

%

%

-

4.8

4.9

4.4

Fiscal year ended
November 30, 2022

4.3

4.1

3.7

¥73 million November 30, 2021

¥65 million(2) Consolidated Financial Position
Total assets

Net assets

Million yen

Fiscal year ended
50,271
November 30, 2022
November 30, 2021
45,938(Reference) Equity: Fiscal year ended November 30, 2022

Equity ratio

Net assets per share

Million yen%

Yen

36,68472.9

1,371.63

33,914
73.7¥36,628 million November 30, 2021

1,240.70¥33,858 million(3) Consolidated Cash Flows
Cash flows fromoperating activities
Fiscal year ended
November 30, 2022
November 30, 2021

Cash flows frominvesting activities

Cash flows from Cash and cash equivalents
financing activities
at end of period

Million yen

Million yen

Million yen

Million yen

850

(135)

(1,916)

10,396

2,644

(401)

(1,380)11,0202. Dividends
Annual dividends
1st quarter- 2nd quarter- 3rd quarterend
end
end
Yen
Yen
Yen

November 30, 2021
Fiscal year ended
November 30, 2022
Fiscal year ending
November 30, 2023
(Forecast)Year-end

Total
Yen

Million yen

%

%

-

9.00

-

17.00

26.00

724

50.6

2.2

-

13.50

-

18.50

32.00

873

51.4

2.4

-

27.00

-

27.00

54.00

- 1 -

Yen

Dividends to
Total
Payout ratio
net assets(consolidated)
dividends(consolidated)

80.1

3. Consolidated Financial Results Forecast for the Fiscal Year Ending November 30, 2023
(December 1, 2022 to November 30, 2023)(% indicates changes from the previous corresponding period.)
Profit attributable Basic earnings per
Operating profit
Ordinary profit
to owners of parent
share

Net sales
Million yen

Full year

50,000% Million yen

3.1

2,300

% Million yen

8.6

2,450

% Million yen

4.6

1,800

%

Yen

7.5

67.40

Notes:(1) Changes in significant subsidiaries during the fiscal year under review (changes in
specified subsidiaries resulting in changes in the scope of consolidation):

No(2) Changes in accounting policies, changes in accounting estimates, and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes2) Changes in accounting policies other than 1) above: No3) Changes in accounting estimates: No4) Retrospective restatement: No(3) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):Fiscal year ended November 30, 2022: 30,000,000
November 30, 2021: 30,800,000
2) Total number of treasury shares at the end of the period:
Fiscal year ended November 30, 2022: 3,295,500
November 30, 2021: 3,510,000
3) Average number of shares during the period:
Fiscal year ended November 30, 2022: 26,901,369
November 30, 2021: 27,372,477
These consolidated financial results are outside the scope of audit by certified public accountants or*
audit firms.
*

Explanation of the proper use of financial results forecast and other notes
The earnings forecasts and other forward-looking statements herein are based on information currently available andcertain assumptions judged to be reasonable. Actual results may differ significantly from these forecasts due to a wide
range of factors.
As for suppositions that form the assumptions for the forecast of financial results and cautionary notes concerning theuse thereof, please refer to “1. Overview of Business Results, etc. (4) Future Outlook” on page 7.
The Company and some of the Morito Group companies have introduced the “Japanese version of the employee
stock ownership plan (J-ESOP)” and the “officer remuneration board incentive plan (BIP) trust.” Consequently, theshares of the Company held by Custody Bank of Japan, Ltd. (trust account E) and The Master Trust Bank of Japan,
Ltd. (officer remuneration BIP trust account), respectively, are included in treasury shares.

- 2 -Table of Contents

1.

Overview of Business Results, Etc. .............................................................................................................................. 4
Overview of Business Results for the Period under Review ...................................................................................... 4
Overview of Financial Position for the Period under Review ...................................................................................... 5
Overview of Cash Flows for the Period under Review ............................................................................................... 6
Future Outlook ........................................................................................................................................................... 7
Basic Dividend Policy and Payments for the Period under Review and the Next Period ........................................... 7
2. Overview of the Corporate Group ................................................................................................................................. 8
3. Basic Stance Regarding Choice of Accounting Standards ...........................................................................................11
4. Consolidated Financial Statements and Primary Notes .............................................................................................. 12(1) Consolidated Balance Sheets .................................................................................................................................. 12(2) Consolidated Statements of Income and Comprehensive Income ........................................................................... 14(3) Consolidated Statements of Changes in Equity ....................................................................................................... 17(4) Consolidated Statements of Cash Flows ................................................................................................................. 19(5) Notes to the Consolidated Financial Statements ..................................................................................................... 21(Notes on Going Concern Assumption) ........................................................................................................................ 21(Changes in Accounting Policies) ................................................................................................................................. 21(Additional Information) ................................................................................................................................................ 22(Segment Information, Etc.) ......................................................................................................................................... 23(Per Share Information) ................................................................................................................................................ 26(Significant Subsequent Events) .................................................................................................................................. 27
5. Other Information ........................................................................................................................................................ 27(1) Changes in Officers.................................................................................................................................................. 27
(1)
(2)
(3)
(4)
(5)

- 3 -

1. Overview of Business Results, Etc.
(1) Overview of Business Results for the Period under Review
The fiscal year under review (December 1, 2021 to November 30, 2022) saw signs of an economic recovery in theoperating environment due to the shift to a new phase of the “living with COVID-19” policy. However, the outlook forthe future remains uncertain due to a combination of various risks, such as soaring raw material costs associated withrising crude oil prices triggered by the situation in Ukraine and other factors as well as currency fluctuations caused by
global monetary tightening.
The Morito Group (the “Group”), which is mainly engaged in apparel, product, and transportation businesses, faced anumber of hurdles that kept profits low, including soaring prices and difficulties in procuring raw materials for its
mainstay products, production cutbacks and stoppages by automakers due to semiconductor shortages, delays inmarine transportation, and rising transportation costs. On the other hand, the Group enjoyed favorable sales ofaccessories and products with superior functionality, including medical wear and working wear, which are unaffectedby trends, as well as yoga, fishing, and other sporting goods, and medical device-related products. Under its “Rideeco”
initiative aimed at realizing a sustainable society, the Group moved forward with the development and sales ofenvironmentally friendly products, using discarded fishing nets and fabric scraps from garment factories, with a focus
on winning new business contracts. The Group has also made ongoing efforts to cut transportation and other costs,
which has substantially improved its profitability.
As a result, for the fiscal year under review, net sales increased 11.1% year on year to ¥48,478 million. Operating profit
was up 30.7% to ¥2,116 million, ordinary profit grew 27.7% to ¥2,342 million, and profit attributable to owners of theparent increased 19.0% to ¥1,674 million.
The Group has adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020),
etc. effective as of the beginning of the fiscal year under review. This change resulted in a decrease of ¥427 million in
net sales and ¥46 million in operating profit, respectively, and resulted in an increase of ¥6 million in ordinary profit andprofit attributable to owners of the parent, respectively, for the fiscal year under review.
Exchange rates used for the conversion of revenue and expenses of the Group’s overseas subsidiaries during the
preparation of consolidated financial statements for the fiscal year under review are as follows.
1Q

2Q

3Q

4Q

USD

113.71(104.51)116.34(106.09)129.73(109.52)

138.28(110.10)EUR

130.04(124.58)130.40(127.80)138.25(131.93)139.26(129.82)

CNY

17.78

(15.81)

18.31(16.38)19.60(16.96)20.18(17.02)

HKD

14.60

(13.48)14.90(13.68)16.53(14.10)17.62(14.16)TWD

4.09(3.67)

4.16(3.78)

4.41(3.91)

4.55(3.95)

VND

0.0050(0.0045)0.0051(0.0046)

0.0056(0.0048)0.0059(0.0048)

THB

3.41

(3.42)

3.52(3.50)

3.77(3.50)

3.80(3.35)

MXN

5.48(5.08)

5.67(5.21)

6.48(5.47)

6.83(5.50)(Note) The exchange rate of the same period in the previous fiscal year is stated in parentheses.

- 4 -Business results by segment are as follows.
Japan
The Apparel Division saw increases in sales of accessories for working wear and medical wear sold in Europe and the
U.S. as well as accessories for casual wear, sportswear, and athletic shoes.
The Product Division enjoyed increases in sales of medical device-related products, products for one-coin shops (like100-yen stores), construction safety products, and snowboarding, surfing, and outdoor products.
In the Transportation Division, sales of automotive interior components to Japanese automotive manufacturers increased.
As a result, net sales grew 10.9% year on year to total ¥33,516 million, and segment profit rose 17.7% year on year
to reach ¥1,618 million.
Due to the adoption of the Accounting Standard for Revenue Recognition, etc., net sales and segment profit fell ¥427
million and ¥46 million respectively.
Asia
In China and Hong Kong apparel operations, sales of working wear accessories for the European and U.S. markets
and accessories for casual wear were up while apparel operations in Vietnam enjoyed growing sales of athletic shoes
accessories.
In the Transportation Division, sales of automotive interior components to Japanese automotive manufacturers
decreased in China due to the semiconductor shortage.
As a result, net sales increased 3.5% year on year to total ¥8,340 million, and segment profit grew 73.7% year on year
to reach ¥696 million.
Europe and the U.S.
In the Apparel Division, sales of accessories related to working wear and casual wear as well as accessories for highend down wear increased.
In the Transportation Division, sales of automotive interior components to Japanese automotive manufacturers
decreased due to the semiconductor shortage.
As a result, net sales grew 23.7% year on year to total ¥6,621 million, and segment profit grew 82.7% year on year toreach ¥104 million.

(2) Overview of Financial Position for the Period under Review
Total assets for the fiscal year under review increased ¥4,333 million from the previous fiscal year-end to ¥50,271
million.
Current assets grew ¥3,523 million from the previous fiscal year-end to ¥30,481 million. This was mainly due to anincrease of ¥1,569 million in merchandise and finished goods, an increase of ¥892 million in notes and accounts
receivable, an increase of ¥687 million in raw materials and supplies, an increase of ¥561 million in electronicallyrecorded monetary claims, and a decrease of ¥703 million in cash and deposits.
Non-current assets were up ¥810 million from the previous fiscal year-end to ¥19,790 million. This was mainly due toan increase of ¥280 million in goodwill, an increase of ¥168 million in machinery and equipment, and an increase of¥137 million in trademark rights included in other intangible assets.
Current liabilities increased ¥1,801 million from the previous fiscal year-end to ¥9,309 million. This was mainly due toan increase of ¥1,084 million in notes and accounts payable - trade, an increase of ¥259 million in liabilities related tochargeable subcontracting included in other, an increase of ¥113 million in accrued expenses included in other, an
increase of ¥106 million in provision for bonuses, and a decrease of ¥114 million in the current portion of long-termborrowings.
Non-current liabilities decreased ¥237 million from the previous fiscal year-end to ¥4,278 million. This was mainly due
to a decrease of ¥280 million in long-term borrowings.
Net assets increased ¥2,769 million from the previous fiscal year-end to ¥36,684 million.
The shareholders’ equity ratio decreased 0.8 percentage points to 72.9% from 73.7% in the previous fiscal year.

- 5 -(3) Overview of Cash Flows for the Period under Review
The status of cash flows for the fiscal year under review is as follows.
(Cash flows from operating activities)
Cash flows provided by operating activities amounted to ¥850 million, compared with cash flows of ¥2,644 million
provided in the previous fiscal year. This was mainly due to an increase in inventories and payment of income taxes,
while there was an increase in funds due to the acquisition of profit before income taxes and the recording ofdepreciation expenses.
(Cash flows from investing activities)
Cash flows used in investing activities amounted to ¥135 million, compared with cash flows of ¥401 million used in theprevious fiscal year. This was mainly due to an increase in cash from the sale of investment securities and the sale ofproperty, plant and equipment, and a decrease in cash from the acquisition of property, plant and equipment.
(Cash flows from financing activities)
Cash flows used in financing activities amounted to ¥1,916 million, compared with cash flows of ¥1,380 million usedin the previous fiscal year. This was mainly due to the repayment of long-term borrowings, payment of dividends, andpurchase of treasury stock.
As a result of the above, cash and cash equivalents at the end of the fiscal year under review decreased ¥623 million
from the previous fiscal year-end to ¥10,396 million.
Trends of cash flow indicators are as follows.
Fiscal year ended
November 30, 2020

November 30, 2021

Fiscal year ended
November 30, 2022

Equity ratio (%)

73.1

73.7

72.9

Equity ratio based on fair value (%)

38.3

38.1

40.3

116.9

81.2

206.1

175.4

245.6

63.5

Cash flow to interest-bearing debt
ratio (%)
Interest coverage ratio (times)(Note) Equity ratio: Shareholders’ equity / Total assets
Equity ratio based on fair value: Total market value of shares / Total assets
Cash flow to interest-bearing debt ratio: Interest-bearing debts / Operating cash flow
Interest coverage ratio: Operating cash flow / Interest paid
* The indicators were calculated using financial figures on a consolidated basis.
* The total market value of shares was calculated by multiplying the closing share price by the total number ofshares outstanding (less the treasury shares) on the date of the fiscal year-end.
* Operating cash flow is the amount of net cash provided by (used in) operating activities recorded in theConsolidated Statements of Cash Flows.
* Among the liabilities recorded on the Consolidated Balance Sheets, interest-bearing debts apply to bonds
payable and borrowings.
* Interest paid is the amount of interest paid recorded on the Consolidated Statements of Cash Flows.

- 6 -(4) Future Outlook
During the fiscal year under review, the Group operated under the corporate vision of “Creating existence value:
Realization of a new Morito Group.”
The situation remains uncertain due to the spread of COVID-19 and the Ukrainian situation. However, aiming forconsolidated net sales of ¥50,000 million and consolidated operating profit of ¥2,500 million in the fiscal year ending
November 30, 2026, the targets established under the Group’s 8th midterm management plan (spanning five years
from fiscal 2022 to fiscal 2026), we will implement various initiatives to adapt to rapidly changing markets and newlifestyles.
Regarding the full-year forecast of the Group for the fiscal year ending November 30, 2023, although the outlook forthe global economy remains uncertain, due to factors including the severe exchange rate fluctuations and priceincreases, the Group will focus on sales of value-added products with a particular emphasis on functionality,
sustainability, and ecology, as well as core products. The consolidated financial results for fiscal 2023 are forecasted
to exceed those of fiscal 2022, with net sales of ¥50,000 million, operating profit of ¥2,300 million, ordinary profit of¥2,450 million, and profit attributable to owners of parent of ¥1,800 million.
*Notes on the future outlook
The aforementioned outlook is based on information available at the date of release of these materials. Actual results
and other details may differ from the outlook due to various factors in the future such as the resurgence of COVID-19.
We will promptly disclose any changes in forecast figures.

(5) Basic Dividend Policy and Payments for the Period under Review and the Next Period
The Company’s basic dividend policy for the fiscal year under review is to secure a sound management foundation,
strengthen its financial structure, and improve profitability while recognizing the return of profits to shareholders as animportant management issue. Internal reserves will be utilized in areas such as investments aimed at long-term growth,
expansions of existing core business, and preparations for new businesses, M&As, and such like, in order to increase
our corporate value in the future.
Dividends are determined after considering factors such as the financial position and net assets.
- Realize continuous dividend payments- Maintain a dividend on equity (DOE) ratio of 1.5%
- Depending on business results, dividend payout ratio of 50% or more in relation to profit attributable to owners ofparent is the standard(However, in a fiscal year with a significant fluctuation in after-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.)
From the perspective of striving to further enhance shareholder returns, after considering factors such as theCompany’s earnings and expenditure balance as well as the share price level, the Company will continuously review
the need to flexibly purchase or retire its treasury shares.
For the fiscal year under review, we plan to propose a year-end dividend of ¥18.50 per share in the Annual General
Meeting of Shareholders that will be held on February 24, 2023. Accordingly, including the interim dividend of ¥13.50
per share, the annual dividend for the fiscal year under review will amount to ¥32.00 per share. This represents anincrease of ¥6.00 from the previous year’s annual dividend of ¥26.00.
Regarding dividends for the next fiscal year, based on our new basic dividend policy announced today, we plan to pay
out an interim dividend of ¥27.00, and a year-end dividend of ¥27.00, which will combine to form an annual dividendof ¥54.00. For the new basic dividend policy, please refer to the “Notice Concerning Partial Changes to Capital Policy
and Shareholder Return Policy, etc., in Line with Formulation of Sustainability Policy” announced today.

- 7 -

2.

Overview of the Corporate GroupThe Group consists of the parent company (the Company), 22 subsidiaries, and 1 affiliate. The main business of theGroup is the sales and manufacturing of materials and products for apparel and lifestyle goods, centering on daily
necessities, as well as automotive interior components. Business activities of the Group include: the sale andmanufacturing of materials for apparel and lifestyle goods such as stationery and OA equipment, and automotive interior
components; the import, sale, and wholesale of marine leisure and snowboarding equipment; and the rental, sale, andcleaning of kitchen appliances.
The classification of reportable segments is the same as the classification of segments described in “4. Consolidated
Financial Statements and Primary Notes (5) Notes to the Consolidated Financial Statements.”
 Consolidated subsidiaries:

22 companies□ Affiliates accounted for using equity method:Japan Morito Japan Co., Ltd.:

1 company

Planning, development, manufacturing, and sales of consumer product materials
and related products Morito Apparel Co., Ltd.:
Planning, development, manufacturing, and sales of apparel materials andproducts
 Morito Auto-Parts Co., Ltd.:
Planning, development, manufacturing, and sales of automotive interior
components
 Ace Industrial Machinery Co., Ltd.: Rental, sales, and cleaning of kitchen appliances Matex Inc.:
Manufacturing of apparel secondary materials, design, printing, website creation,
desktop publishing, and graphic design production planning 52DESIGN Co., Ltd.:Sale and manufacturing of bags, accessories, clothes, furniture, andmiscellaneous goods
 Maneuverline Co., Ltd.:
Import, sales, and wholesaling of marine leisure, snowboarding, and apparelgoods Canvas Co., Ltd.:
A wholly owned subsidiary of Maneuverline Co., Ltd.; import, sales andwholesaling of apparel goods□ Kuraray Fastening Co., Ltd.: Sale and manufacturing of hook and loop fasteners
Asia Morito Scovill Hong Kong Co., Ltd.: Sale of materials for apparel and consumer products and automotive interior
components
 Morito (Shenzhen) Co., Ltd.:
A wholly owned subsidiary of Morito Scovill Hong Kong Co., Ltd.; manufacturing
and sale of materials for apparel and consumer products Taiwan Morito Co., Ltd.:Sale of materials for consumer products Morito Shanghai Co., Ltd.:Sale of materials for apparel and consumer products and automotive interior
components
 Kane-M Danang Co., Ltd.:Sale and manufacturing of materials for apparel and consumer products, andoperation of rental factories
 Kane-M (Thailand) Co., Ltd.:Sale of materials for apparel and consumer products and automotive interior
components
 Shanghai New World Matex International Trade Co., Ltd.:
A wholly owned subsidiary of Matex Inc.; sales and manufacturing of apparelsecondary materials, design, and sales of printing materials both in and outside
China GSG (Scovill) Fasteners Asia Ltd.: A wholly owned subsidiary of Morito Scovill Americas, LLC; sale of materials forapparel products
 Scovill Fasteners India PVT. Ltd.: A wholly owned subsidiary of Morito Scovill Americas, LLC; sale of materials forapparel products
Europe and the U.S.
 Morito North America, Inc.:
Sale of automotive interior components
 Morito (Europe) B.V.:
Sale of materials for apparel and consumer products, and automotive interior
components
 Morito Scovill Americas, LLC:
Sale and manufacturing of materials for apparel and consumer products
 Scovill Fasteners UK Ltd.:
A wholly owned subsidiary of Morito Scovill Americas, LLC; sale of materials forapparel products Morito Scovill Mexico S.A. de C.V.: A subsidiary of Morito North America, Inc. (owning an 89.4% stake) and Morito- 8 -Scovill Americas, LLC (owning a 10.6% stake); sale of materials for apparel andconsumer products, and automotive interior components(Notes) 1
2

3
4
5

The liquidation of unconsolidated subsidiary Matex Bangkok Co., Ltd. was completed on August 9, 2022.
Starting in the fiscal year under review, the newly established Morito Apparel Co., Ltd. and Morito Auto-Parts
Co., Ltd. are included in the scope of consolidation. On June 1, 2022, Morito Japan Co., Ltd. transferred its
apparel materials business and automotive interior components business, to Morito Apparel Co., Ltd. andMorito Auto-Parts Co., Ltd. respectively, through an absorption-type company split.
Taiwan Morito Co., Ltd. is currently undergoing liquidation procedures.
Kane-M Shanghai Co., Ltd. was renamed Morito Shanghai Co., Ltd. on July 6, 2022, and Kane-M, Inc. wasrenamed Morito North America, Inc. on November 1, 2022.
Kane-M (Thailand) Co., Ltd. was renamed Morito Trading (Thailand) Co., Ltd. on December 1, 2022, andKane-M Danang Co., Ltd. was renamed Morito Danang Co., Ltd. on December 22, 2022.

- 9 -The Group conducts business with the following organizational structure.

MORITO CO., LTD.

JAPAN

ASIA

EUROPE AND THE U.S.

 MORITO SCOVILL HONG KONG
CO., LTD.
 MORITO (SHENZHEN) CO.,LTD.
 MORITO SHANGHAI CO., LTD.
 KANE-M DANANG CO., LTD.
 KANE-M (THAILAND) CO., LTD.
 SHANGHAI NEW WORLDMATEX INTERNATIONAL
TRADE CO., LTD.
 GSG (SCOVILL) FASTENERS
ASIA LTD.
 SCOVILL FASTENERS INDIA
PVT. LTD.

 MORITO (EUROPE) B.V.
 MORITO SCOVILL AMERICAS,LLC SCOVILL FASTENERS UK LTD.
 MORITO SCOVILL MEXICO S.A.
de C.V.

 MORITO JAPAN CO., LTD.
 ACE INDUSTRIAL MACHINERYCO., LTD.
 MANEUVERLINE CO., LTD.
 CANVAS CO., LTD.
KURARAY FASTENING CO.,LTD.

 MORITO SCOVILL HONG KONG
CO., LTD.
 MORITO (SHENZHEN) CO.,LTD.
 TAIWAN MORITO CO., LTD.
 MORITO SHANGHAI CO., LTD.
 KANE-M DANANG CO., LTD.
 KANE-M (THAILAND) CO., LTD.

 MORITO (EUROPE) B.V.
 MORITO SCOVILL MEXICO S.A.
de C.V.

 MORITO AUTO-PARTS CO.,LTD.

 MORITO SCOVILL HONG KONG
CO., LTD.
 MORITO SHANGHAI CO., LTD.
 KANE-M (THAILAND) CO., LTD.

 MORITO NORTH AMERICA,
INC.
 MORITO (EUROPE) B.V.
 MORITO SCOVILL MEXICO
S.A. de C.V.

 MORITO APPAREL CO., LTD.
 MATEX INC.
 52DESIGN CO., LTD.

APPARELDIVISIONPRODUCTDIVISION

TRANSPORTATIONDIVISION

CLIENTS(Note) : Consolidated subsidiaries : Affiliates accounted for using equity method- 10 -

3.

Basic Stance Regarding Choice of Accounting Standards
Taking into consideration the comparability of consolidated financial statements across periods and among companies,
the Group’s policy is to continue preparing its consolidated financial statements using Japanese GAAP for the time being.
With regard to the application of International Financial Reporting Standards (IFRS), the Group’s policy is to respond
appropriately based on considerations of the situation in Japan and overseas.

- 11 -

4. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheets(Thousand yen)
As of November 30, 2021

As of November 30, 2022

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

11,103,207
8,363,688

10,399,699--

1,132,789
8,122,904

2,286,001
3,590,130

2,847,664
5,159,313

Work in progress
Raw materials and supplies

352,442598,032

509,281
1,285,121

Other Information
Allowance for doubtful accounts

707,446(43,235)

1,076,907(52,481)

26,957,713

30,481,201

7,650,091(3,735,844)

8,005,558(4,035,303)

3,914,246

3,970,255

Notes receivable - trade
Accounts receivable - trade
Electronically recorded monetary claims
Merchandise and finished goods

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles

2,377,636

3,017,147

Accumulated depreciation(1,764,313)(2,235,107)

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Lease assets, net

613,323

782,0392,362,025

2,453,916(1,973,146)(2,108,137)

388,878345,778

4,594,174

4,547,309

111,742(73,727)

123,040(82,431)38,01540,609509,268

634,820

Accumulated depreciation(263,468)(311,359)

Right of use assets, net

245,800

323,460

Right of use assets

Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill

82,532

157,477

9,876,970

10,166,930

2,432,266

2,712,342

Leased assets
Other Information

5,708
1,031,775

3,871
1,150,396

Total intangible assets

3,469,750

3,866,611

Investment securities
Long-term loans receivable

4,485,900
48,0004,465,618
42,000

Deferred tax assets
Retirement benefit assets

462,373
241,832

535,338
286,915

Other Information
Allowance for doubtful accounts

504,360(108,676)

573,067(145,760)

Total investments and other assets

5,633,790

5,757,179

18,980,511

19,790,721

45,938,224

50,271,922

Investments and other assets

Total non-current assets
Total assets- 12 -

(Thousand yen)
As of November 30, 2021

As of November 30, 2022

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations

3,600,779
853,075

4,684,932
940,625

Short-term borrowings
Current portion of long-term borrowings

50,000394,620

50,000280,008

Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other Information

483,951
286,425

577,794393,205

86,065

145,842

1,752,857

2,237,096

Total current liabilities

7,507,774

9,309,505

Non-current liabilities
Long-term borrowings

1,703,302

1,423,294

1,229,154
275,959

1,268,648
272,019

Provision for share awards
Provision for retirement benefits for directors(and other officers)
Provision for share awards for directors (andother officers)
Provision for environmental measures

32,27437,44832,15845,55891,65088,46820,07525,968Retirement benefit liability
Other Information

911,731219,273862,554254,097

Deferred tax liabilities
Deferred tax liabilities for land revaluation

Total non-current liabilities

4,515,579

4,278,056

12,023,354

13,587,562

Shareholders’ equity
Share capital

3,532,492

3,532,492

Capital surplus
Retained earnings

3,507,603
26,726,521

2,962,803
27,539,047

Treasury shares(2,289,615)(2,174,195)

Total shareholders’ equity

31,477,001

31,860,146

1,321,667

1,274,715

Total liabilities
Net assets

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeShare acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets- 13 -

4,612(15,199)

451,115
641,116

442,187
3,023,530(36,922)

43,3802,381,589

4,768,615

56,28055,597--33,914,870

36,684,360

45,938,224

50,271,922

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Thousand yen)
For the fiscal year ended
November 30, 2021

For the fiscal year ended
November 30, 2022

Net sales

43,636,848

48,478,405

Cost of sales

32,235,770

35,990,975

Gross profit

11,401,077

12,487,429

Selling, general and administrative expenses
Salaries

3,281,014

3,366,015

Bonuses
Welfare expenses

609,669
782,211695,886
841,485

Retirement benefit expenses
Provision for bonuses for directors (and otherofficers)
Provision for retirement benefits for directors(and other officers)
Provision for share awards for directors (andother officers)
Communication expenses

220,126

187,420

82,867

129,796

5,033

13,90016,217

16,647108,031

101,875

Freight and packing costs
Provision of allowance for doubtful accounts

1,461,317
41,265

1,549,973
22,509646,752
154,391

698,672
160,204

510,657
1,861,736

524,7212,061,370

9,781,293

10,370,480

1,619,783

2,116,949

9,721

9,690

85,53868,81285,142
79,320-11,531

Commission expenses
Rent expenses
Depreciation
Other Information
Total selling, general and administrative
expenses
Operating profit
Non-operating profit
Interest income
Dividend income
Rental income from real estate
Foreign exchange gains
Share of profit of entities accounted for using
equity method
Subsidies for employment adjustment
Other Information

65,07873,334

111,854
58,855

4,205
50,693

Total non-operating profit

399,860

313,917

10,70013,172

Sales discounts
Depreciation of assets for rent

59,08022,57917,797

Foreign exchange losses
Other Information

34,895
58,12857,306

Total non-operating expenses

185,384

88,275

1,834,260

2,342,590

Non-operating expenses
Interest expenses

Ordinary profit- 14 -

(Thousand yen)
For the fiscal year ended
November 30, 2021
Extraordinary income
Gain on sale of non-current assets

For the fiscal year ended
November 30, 2022

360

123,184

378,617787

164,385682-

466
96,654

379,764

385,373

Loss on sale of non-current assets
Loss on retirement of non-current assets

29
30,879585
15,236

Loss on sale of investment securities
Loss on valuation of golf club membership

139
200

-

Impairment losses
Loss on business restructuring

16,92634,365-

Loss due to new coronavirus infection
Complaint settlement

9,456
-

48,648Gain on sales of investment securities
Gain on reversal of share acquisition rights
Gain on sale of golf club membership
Insurance claim income
Total extraordinary income
Extraordinary losses

Loss on business withdrawal-

46,65891,997111,128

Profit before income taxes

2,122,027

2,616,836

Income taxes - current
Income taxes - deferred

771,950(57,129)

1,008,111(65,355)

Total income taxes

714,820

942,755

1,407,207

1,674,080--

1,407,207

1,674,080

Total extraordinary losses

ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 15 -

Consolidated Statements of Comprehensive Income(Thousand yen)
For the fiscal year ended
November 30, 2021
ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

For the fiscal year ended
November 30, 2022

1,407,207

1,674,080

376,130(46,951)

4,493(19,811)528,372

2,382,413

30,73680,3030(0)939,734

2,395,953

Comprehensive income

2,346,941

4,070,034

Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

2,346,941

4,070,034--- 16 -

(3) Consolidated Statements of Changes in Equity
For the fiscal year ended November 30, 2021
(Thousand yen)
Shareholders’ equity

Balance at beginning of
periodShare capital

CapitalsurplusRetainedearnings

TreasurysharesTotal shareholders’equity3,532,492

3,507,603

25,703,378(2,227,056)

30,516,416

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period(384,063)(384,063)

1,407,207

1,407,207(63,496)(63,496)

937

937

-

-

1,023,143(62,559)

960,584

3,532,492

3,507,603

26,726,521(2,289,615)

31,477,001

Accumulated other comprehensive income

Balance at beginning of
periodValuation

Deferreddifference on

gains oravailable-for-losses on

sale securities

hedges945,536

118

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

451,115

112,743

Total
Remeasurements accumulatedof defined benefit

other

plans

comprehensive

Share
Nonacquisition controllingrightsinterests

Total net
assetsincome(67,659)

1,441,855

57,067- 32,015,339

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other thanshareholders’ equity
Total changes during
periodBalance at end of period(384,063)
1,407,207(63,496)937
376,130

4,494-

528,372

30,736

939,734(787)-

938,946

376,130

4,494-

528,372

30,736

939,734(787)-

1,899,531

1,321,667

4,612

451,115

641,116(36,922)

2,381,589

56,280- 17 -- 33,914,870

For the fiscal year ended November 30, 2022
(Thousand yen)
Shareholders’ equity

Balance at beginning of
periodCumulative effect ofchanges in accounting
policies
Balance at beginning of
period reflectingchanges in accounting
policies

Share capital

CapitalsurplusRetainedearnings

TreasurysharesTotal shareholders’equity3,532,492

3,507,603

26,726,521(2,289,615)

31,477,001(27,800)

3,532,492

3,507,603

26,698,720(27,800)(2,289,615)

31,449,200

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesRetirement of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period(842,681)(842,681)

1,674,080

1,674,080(544,800)(449,455)(449,455)

20,07420,074

544,800

-

8,927

8,927

-

(544,800)

840,326

115,419

410,946

3,532,492

2,962,803

27,539,047(2,174,195)

31,860,146

Accumulated other comprehensive income

Balance at beginning of
periodCumulative effect ofchanges in accounting
policies
Balance at beginning of
period reflectingchanges in accounting
policies

Valuation

Deferreddifference on

gains oravailable-for-losses on

sale securities

hedges1,321,667

4,612

Revaluation
reserve forland

451,115

Foreigncurrencytranslation
adjustment

641,116

Total
Remeasurements accumulatedof defined benefit

other

plans

comprehensive

Share
Nonacquisition controllingrightsinterests

Total net
assetsincome(36,922)

2,381,589

56,280- 33,914,870(27,800)

1,321,667

4,612

451,115

641,116(36,922)

2,381,589

56,280- 33,887,069

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesRetirement of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equityTotal changes during
periodBalance at end of period(842,681)
1,674,080(449,455)
20,074
8,927(46,951)(19,811)(8,927) 2,382,413

80,303

2,387,026

(682)

-

2,386,343(46,951)(19,811)(8,927) 2,382,413

80,303

2,387,026

(682)

-

2,797,290

1,274,715(15,199)442,187 3,023,530

43,3804,768,615

55,597- 18 -- 36,684,360

(4) Consolidated Statements of Cash Flows(Thousand yen)
For the fiscal year ended For the fiscal year ended
November 30, 2021
November 30, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation

2,122,027
937,238

2,616,836
992,422

Impairment losses
Amortization of goodwill

16,926237,327

259,832

Increase (decrease) in provision for bonuses
Decrease (increase) in retirement benefit asset

97,841
15,31386,83011,278

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Increase (decrease) in provision for share-based
remuneration
Increase (decrease) in provision for share-based
remuneration for directors (and other officers)
Increase (decrease) in allowance for doubtful accounts

15,942

10,204(29,941)

13,400(5,178)

5,173

16,217(3,181)40,33029,442

Interest and dividend income
Interest expenses(95,259)
10,700(94,832)
13,172

Subsidies for employment adjustment
Insurance claim income
Share of loss (profit) of entities accounted for using equity
methodGain on reversal of share acquisition rights(111,854)-(4,205)(96,654)(65,078)(73,334)

(787)

(682)

Loss (gain) on sales of non-current assets
Loss (gain) on sales of investment securities(330)(378,477)(122,599)(164,385)

Loss (gain) on sale of golf memberships
Loss on valuation of golf club membership

200

(466)
-

Loss on retirement of non-current assets
Complaint settlement

30,879-15,236
48,648Loss on business withdrawal
Decrease (increase) in trade receivables(542,641)

46,658(775,801)

Decrease (increase) in inventories
Increase (decrease) in trade payables

310,449
19,780(1,785,241)702,848

Other Information

197,485(147,792)

Subtotal

2,839,112

1,582,807

Interest and dividends received

95,244

94,848Interest paid
Subsidies for employment adjustment received(10,767)
96,277(13,395)
19,572-96,654(36,709)

Income taxes paid

(375,843)(893,143)

Cash flows from operating activities

2,644,023

850,634

Proceeds from insurance income
Complaint settlement paid

Cash flows from investing activities
Payments into time deposits(79,000)-

Proceeds from withdrawal of time deposits
Purchase of investment securities

88,596(35,038)

91,921(19,189)

Proceeds from sales of investment securities
Purchase of property, plant and equipment

473,619(784,947)

193,429(517,000)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets

967(67,976)

213,964(93,987)

Proceeds from collection of loans receivable
Other Information

6,800(4,729)6,000(10,251)(401,707)(135,113)

Cash flows from investing activities- 19 -

(Thousand yen)
For the fiscal year ended For the fiscal year ended
November 30, 2021
November 30, 2022
Cash flows from financing activities
Repayments of lease obligations(202,772)(229,818)

Repayments of long-term borrowings
Redemption of bonds(530,000)(200,000)(394,620)-

Purchase of treasury shares
Dividends paid

(63,496)(384,063)(449,455)(842,681)(1,380,332)(1,916,575)

Cash flows from financing activities
Effect of exchange rate change on cash and cash equivalents

106,057

577,131

Net increase (decrease) in cash and cash equivalents

968,040(623,922)

Cash and cash equivalents at beginning of period

10,052,070

11,020,111

Cash and cash equivalents at end of period

11,020,111

10,396,188- 20 -

(5) Notes to the Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.
(Changes in Accounting Policies)(Adoption of accounting standards for revenue recognition)
The Group has adopted the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020),
etc. effective as of the beginning of the fiscal year under review. The Group now recognizes revenue when control ofpromised goods or services is transferred to customers in an amount that reflects the consideration to which it expects
to be entitled in exchange for those goods or services.
The Group also uses the alternative treatment specified in paragraph 98 of the Implementation Guidance on
Accounting Standard for Revenue Recognition, under which revenue is recognized when goods or products sold inJapan are shipped, as long as the period from the time of shipment to the time when control of the goods or products
is transferred to customers is a normal period.
Major changes due to the adoption of the Accounting Standard for Revenue Recognition are as follows.
(Principal vs. agent)
For transactions in which the Group acts as an agent in providing goods or services to customers, the Group previously
recognized revenue in the gross amount of consideration received from the customer, but now recognizes revenue as
the net amount of such gross consideration less amounts paid to suppliers of goods or services.
(Variable consideration for transactions with potential discounts)
For sales that include discounts given to customers at a later date based on past sales, the Group previously reduced
revenue based on historical experience of actual discounts given, but now recognizes revenue by excluding theamount equivalent to revenue from goods and products that are expected to be discounted at the time of sale. The
price expected to be reduced is included in “other” under “current liabilities” as a refund liability.
(Transactions in which a certain level of returns is expected)
For transactions in which a certain level of returns is expected, the Group previously reduced revenue and cost of
sales based on historical experience of actual customer returns, but now recognizes revenue and cost of sales by
excluding the amount equivalent to revenue and cost of sales of goods and products expected to be returned at thetime of sale. The consideration for goods and products expected to be returned is included in “other” under “current
liabilities” as a refund liability, and the asset recognized as the right to recover the goods and products from
customers upon settling the refund liability is included in “other” under “current assets” as a return asset.
(Consideration payable to customers)
The Group previously recognized consideration paid to customers, such as EDI commissions and center fees, as selling,
general and administrative expenses, but now treats such consideration as a reduction in the transaction price.
(Transactions involving materials supplied by customers for a fee)
For transactions in which products processed from materials supplied by customers for a fee are sold to thosecustomers, the Group previously recognized revenue and cost of sales by including the amount equivalent tomaterials supplied for a fee, but now recognizes the amount excluding the amount equivalent to materials supplied
for a fee as revenue and cost of sales.
(Chargeable subcontracting)
For transactions involving chargeable subcontracting, the Group previously recognized the extinguishment of
inventory for the goods supplied to its subcontractors for a fee. However, when the Group deems that it has an actual
obligation to repurchase the supplied goods, it continues to recognize the inventory and includes the amount- 21 -

equivalent to the ending inventory of the supplied goods remaining with subcontractors in “other” under “current
liabilities” as a liability related to chargeable subcontracting.
The Group uses the Accounting Standard for Revenue Recognition, etc. in accordance with the transitional treatment
set forth in the proviso of paragraph 84 of the standard. The cumulative effect of retrospectively applying the new
accounting policy to periods prior to the beginning of the fiscal year under review is added to or deducted from retained
earnings at the beginning of the fiscal year under review, and the new accounting policy has been applied starting withthe said beginning balance of retained earnings. However, in accordance with the method set forth in paragraph 86 of
the Accounting Standard for Revenue Recognition, the new accounting policy was not applied retrospectively tocontracts for which almost all revenue amounts were recognized using the previous treatment prior to the beginningof the fiscal year under review. In addition, the Group has applied the method set forth in (1) of the second part ofparagraph 86 of the Accounting Standard for Revenue Recognition to account for contract changes made prior to thebeginning of the fiscal year under review based on the contract terms after reflecting all contract changes. The
cumulative effect of such changes has been added to or deducted from retained earnings at the beginning of the fiscal
year under review.
“Notes and accounts receivable - trade,” which were included in “current assets” in the consolidated balance sheets
for the previous fiscal year, are included in “notes receivable - trade” and “accounts receivable - trade” beginning in
the fiscal year under review. However, in accordance with the transitional treatment set forth in paragraph 89-2 of the
Accounting Standard for Revenue Recognition, no reclassification has been made for the previous fiscal year using
the new presentation method.
As a result, the consolidated balance sheet for the fiscal year under review shows an increase of ¥259,453 thousandin merchandise and finished goods, ¥61,288 thousand in other current assets, and ¥345,956 thousand in other current
liabilities compared with the balance before the application of the Accounting Standard for Revenue Recognition, etc.
The consolidated statements of income for the fiscal year under review show a decrease of ¥427,938 thousand in net
sales, a decrease of ¥274,221 thousand in cost of sales, a decrease of ¥107,484 thousand in selling, general andadministrative expenses, and a decrease of ¥46,233 thousand in operating profit, and an increase of ¥6,609 thousandin ordinary profit and profit before income taxes respectively.
The consolidated statement of cash flows for the fiscal year under review shows an increase of ¥6,609 thousand in
profit before income taxes.
The beginning balance of retained earnings in the consolidated statement of changes in net assets decreased ¥27,800
thousand due to the cumulative effect reflected in net assets at the beginning of the fiscal year under review.
The impact on per share information is stated in the relevant section.
In accordance with the transitional treatment set forth in paragraph 89-3 of the Accounting Standard for Revenue
Recognition, information on disaggregated revenue from contracts with customers for the previous fiscal year is notprovided.
(Adoption of accounting standards for fair value measurement)
The Group has adopted the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019),
etc. effective as of the beginning of the fiscal year under review. In accordance with the transitional treatment set forthin paragraph 19 of the Accounting Standard for Fair Value Measurement and paragraph 44-2 of the AccountingStandard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), the Group will apply the new accounting
policy stipulated by the Accounting Standard for Fair Value Measurement, etc. prospectively. This has no effect on the
consolidated financial statements.
(Additional Information)(Impact of COVID-19 pandemic on accounting estimates)
The Company estimated future cash flows and made accounting estimates for the application of impairment accounting
to fixed assets (including goodwill) for the fiscal year under review based on the assumption that the impact of the- 22 -COVID-19 pandemic is subsiding and that its effect on the Group’s performance will be limited.
However, if the status of the pandemic or economic activities deviate from the said assumption, the Group’s financial
position and operating results may be affected.
(Segment Information, Etc.)[Segment information]
1. Overview of reportable segments
The Group’s reportable segments are those constituent units for which discrete financial information is available, andfor which the Board of Directors conducts regular reviews for the purposes of making decisions on the allocation of
resources and assessing performance.
The main business of the Group is the sales and manufacturing of materials and products for apparel and lifestyle
goods, centering on daily necessities, as well as automotive interior components. Operations in Japan are mainly carriedout by six local subsidiaries, operations in Asia are mainly carried out by local subsidiaries in China and Hong Kong,and operations in Europe and the U.S. are mainly carried out by local subsidiaries in the U.S., Mexico, and theNetherlands. The Company and its local subsidiaries, etc. are independently managed units, but the Group formulates
comprehensive strategies for business activities across all regions.
The Group therefore consists of three regional segments, each of which is a reportable segment: Japan, Asia, andEurope and the U.S.
2. Method used to calculate amounts of net sales, profit (loss), assets and other items by reportable segment
The accounting treatment used for each of the reportable segments is substantially the same as the accounting
treatment used in the preparation of the consolidated financial statements.
The amounts presented for the profit of reportable segments represent operating profit.
The amounts presented for intersegment sales or transfers are based on prevailing market prices.
As described in “Changes in Accounting Policies,” the Group has applied the Accounting Standard for Revenue
Recognition, etc. to its consolidated financial statements from the beginning of the fiscal year under review and changed
its accounting method for revenue recognition. Accordingly, the method of calculating profit or loss by geographic
segment has also been changed.
As a result of this change, consolidated net sales and segment profit for Japan for the fiscal year under review arerespectively ¥427,938 thousand and ¥46,233 thousand less than what they would be when calculated using theprevious method.

- 23 -

3. Information on amounts of net sales, profit (loss), assets and other items by reportable segment
I. For the fiscal year ended November 30, 2021
(Thousand yen)Amount recorded inReportable Segment
Japan

Asia

Europe & the
U.S.

Total

30,229,154

8,054,328

5,353,364

43,636,848

1,717,321

2,408,394

31,946,475

Segment profit
Segment assets

Consolidated
Adjustment(Notes 1, 3) Financial Statements(Note 2)

Net sales
Net sales to externalcustomers
Intersegment sales ortransfers
Total-

43,636,848

52,375

4,178,091 (4,178,091)-

10,462,723

5,405,740

47,814,939 (4,178,091)

43,636,848

1,375,514

401,180

56,9291,833,625(213,841)

1,619,783

30,798,110

6,091,162

6,691,907

43,581,180

2,357,044

45,938,224

410,717314,565

211,954937,238-

937,238

791,151

173,213106,048

1,070,413-

1,070,413

Other items
Depreciation
Increase in property, plantand equipment andintangible assets(Notes) 1
2
3

The adjustment of ¥(213,841) thousand to segment profit includes corporate expenses of ¥(213,877)
thousand not allocated to the reportable segments, and other in the amount of ¥36 thousand.
The amount of segment profit has been adjusted with operating profit in the Consolidated Statements ofIncome.
The amount of the adjustment to segment assets of ¥2,357,044 thousand includes intersegment eliminationof ¥(9,518,492) thousand, and corporate assets of ¥11,875,536 thousand not allocated to the reportablesegments. Corporate assets mainly refer to the financial assets (cash and deposits, investment securities,etc.) held by the Company, which is the holding company of the Group.

- 24 -

II. For the fiscal year ended November 30, 2022
(Thousand yen)Amount recorded inReportable Segment
Europe & the
U.S.

Total

Consolidated
Adjustment(Notes 1, 3) Financial Statements

Japan

Asia

Apparel

11,528,224

5,763,357

5,503,993 22,795,574-

22,795,574

Product

17,315,149

711,216

33,820 18,060,186-

18,060,186

Transportation

4,673,065

1,865,563

1,084,015

7,622,644-

7,622,644

33,516,439

8,340,137

6,621,828 48,478,405-

48,478,405

33,516,439

8,340,137

6,621,828 48,478,405-

48,478,405

1,795,433

3,630,045

5,516,662 (5,516,662)-

35,311,873

11,970,182

6,713,012 53,995,068 (5,516,662)

48,478,405

Segment profit

1,618,824

696,660

Segment assets

32,895,532

7,636,550

422,817353,393

216,211369,617236,337

284,030(Note 2)

Net sales

Revenue from contracts withcustomers
Net sales to externalcustomers
Intersegment sales ortransfers
Total

91,183104,001

2,419,486(302,536)

2,116,949

8,486,327 49,018,409

1,253,513

50,271,922

992,422-

992,422889,985-889,985

Other items
Depreciation
Increase in property, plantand equipment andintangible assets(Notes) 1
2
3

The adjustment of ¥(302,536) thousand to segment profit includes corporate expenses of ¥(222,104)
thousand not allocated to the reportable segments, and other in the amount of ¥(80,432) thousand.
The amount of segment profit has been adjusted with operating profit in the Consolidated Statements ofIncome.
The amount of the adjustment to segment assets of ¥1,253,513 thousand includes intersegment eliminationof ¥(9,675,966) thousand, and corporate assets of ¥10,929,480 thousand not allocated to the reportablesegments. Corporate assets mainly refer to the financial assets (cash and deposits, investment securities,etc.) held by the Company, which is the holding company of the Group.

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(Per Share Information)(Yen)
As of November 30, 2021
(December 1, 2020
to November 30, 2021)

Item
Net assets per share

As of November 30, 2022
(December 1, 2021
to November 30, 2022)

1,240.70

1,371.63

Basic earnings per share

51.41

62.23

Diluted earnings per share--(Notes) 1

2

3
4

The number of common shares that are treasury shares used to calculate “net assets per share” includes
the Company’s shares (373,000 shares in the previous fiscal year, 373,000 shares in the fiscal year underreview) held by Custody Bank of Japan, Ltd. (trust account E), and the Company’s shares (175,000 sharesin the previous fiscal year, 154,000 shares in the fiscal year under review) held by The Master Trust Bankof Japan, Ltd. (officer remuneration BIP trust account).
The average number of common shares during the period that are treasury shares used to calculate “basic
earnings per share” includes the Company’s shares (374,000 shares in the previous fiscal year, 373,000
shares in the fiscal year under review) held by Custody Bank of Japan, Ltd. (trust account E), and theCompany’s shares (175,000 shares in the previous fiscal year, 162,000 shares in the fiscal year underreview) held by The Master Trust Bank of Japan, Ltd. (officer remuneration BIP trust account).
Diluted earnings per share are not stated as there were no residual shares with a dilutive effect.
As described in “Changes in Accounting Policies,” the Group has applied the Accounting Standard for
Revenue Recognition, etc. As a result, net assets per share decreased ¥0.79 and net income per share
increased ¥0.24.

(Note) Basis for the Calculations
1 Net assets per share
Item

As of November 30, 2021 As of November 30, 2022

Total net assets on Consolidated Balance Sheets(Thousand yen)

33,914,870

36,684,360

Amount deducted from total net assets (thousand yen)

56,28055,597[Including: Share acquisition rights (thousand yen)](56,280)(55,597)[Including: Non-controlling interests (thousand yen)]--

Net assets relating to common shares (thousand yen)

33,858,590

36,628,762

Number of common issued shares (thousand shares)

30,80030,000

Number of common shares that are treasury shares(thousand shares)

3,510

3,295

Number of common shares used to calculate net
assets per share (thousand shares)

27,29026,704(Notes)The number of common shares that are treasury shares used to calculate net assets per share includes
the Company’s shares held respectively by Custody Bank of Japan, Ltd. (trust account E) and The
Master Trust Bank of Japan, Ltd. (officer remuneration BIP trust account) as treasury shares.

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2 Basic earnings per share
As of November 30, 2021
(December 1, 2020
to November 30, 2021)

As of November 30, 2022
(December 1, 2021
to November 30, 2022)

1,407,207

1,674,080--

1,407,207

1,674,080

Average number of common shares during
the period (thousand shares)

27,372

26,901

Overview of residual shares not included in
calculation of diluted earnings per share due tolack of dilutive effect

Share acquisition rights
resolved by the Board of
Directors and at the Annual
General Meeting of
Shareholders held on
February 25, 2016
Common shares: 536,000

Share acquisition rights
resolved by the Board of
Directors and at the Annual
General Meeting of
Shareholders held on
February 25, 2016
Common shares: 529,500

Item
Basic earnings per share
Profit attributable to owners of parent(thousand yen)Amount not attributable to commonshareholders (thousand yen)
Profit attributable to owners of parent relating
to common shares (thousand yen)

(Notes)

The average number of common shares during the period used to calculate basic earnings per shareand diluted earnings per share includes the Company’s shares held respectively by Custody Bank ofJapan, Ltd. (trust account E) and The Master Trust Bank of Japan, Ltd. (officer remuneration BIP trust
account) as treasury shares.

(Significant Subsequent Events)
Not applicable.

5. Other Information(1) Changes in Officers
1. Changes of representative
Not applicable.
2. Changes of other officers
Not applicable.

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