Consolidated Financial Results for the First Quarter of the Fiscal YearEnding November 30, 2023 [Japanese GAAP]
April 13, 2023
Stock
Tokyo Stock
Company name:
Morito Co., Ltd.
exchange
Exchangelisting:
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
Phone:
3551
Manager of Business Management Division
Scheduled date of filing
Scheduled date of commencing
April 14, 2023
quarterly securities report:
dividend payments:
Availability of supplementary briefing material on quarterly financial results:
Available
Schedule of quarterly financial results briefing session:
None scheduled(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Results for the First Quarter of the Fiscal Year Ending November 30, 2023
(December 1, 2022 to February 28, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)

Net sales
Million yen

Operating profit%

1Q of FY 2023
11,804
2.1
1Q of FY 2022
11,561
8.8(Note) Comprehensive income: 1Q of FY 2023

Profit attributableto owners ofparentOrdinary profit

Million yen%

Million yen%

Million yen

%

619
610

1.5
28.9

661
655

0.9
35.0

516
449

14.9
55.6

¥(150) million [-%] 1Q of FY 2022

¥537 million yen [97.8%]

Basic earnings per Diluted earnings per
share
share
1Q of FY 2023
1Q of FY 2022

Yen

Yen

19.31
16.53

-

(2) Consolidated Financial Position
Total assets
1Q of FY 2023
FY 2022

Net assets

Equity ratio

Million yen

Million yen%

48,27250,271

36,08336,684

74.6
72.9(Reference) Equity: 1Q of FY 2023

¥36,034 million FY 2022

¥36,628 million

2. Dividends
Annual dividends
1st quarter- 2nd quarter- 3rd quarterYear-end
end
end
end
Yen

Yen

Yen

Yen

Yen

-

13.50

-

18.50

32.00

27.00

-

27.00

54.00

FY 2022
FY 2023
FY 2023 (Forecast)(Note)

Total

Revisions to the latest announcement of dividend forecast

:

None

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
Operating profit
Ordinary profit
to owners ofearnings perparentshare

Net sales
Full year(Note)

Million yen

50,000%

3.1

Million yen

2,300

%

8.6

Million yen

2,450

Revisions to the latest announcement of performance forecast :%4.6

Million yen

1,800

None

%

7.5

Yen

67.40

* Notes:(1) Changes in significant subsidiaries during the period under: No
review(changes in specified subsidiaries resulting in changes in the scope of consolidation)(2) Adoption of special accounting treatment for preparing
quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates, and retrospective restatement
1) Changes in accounting policies due to the revision of: Yesaccounting standards
2) Changes in accounting policies other than 1) above: No3) Changes in accounting estimates: No4) Retrospective restatement: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end February 28, 2023:of the period (including treasury shares):2) Total number of treasury shares at the
February 28, 2023:
end of the period:3) Average number of shares during theperiod:**1Q of the fiscal year
ending November
30, 2023:

30,000,000 November 30, 2022: 30,000,000
3,232,200 November 30, 2022:

3,295,500

1Q of the fiscal year
26,731,150 ended November

27,184,425

30, 2022

These quarterly 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 and certain assumptions judged to be reasonable. Actual results may differ significantly fromthese 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 the use thereof, please refer to “(2) Forecast of Consolidated Business Results and other
Forward-looking Information” in “1. Qualitative Information for the Period under Review” on page 3.
The Company and some of the Morito Group companies have introduced the “Japanese version of theemployee stock ownership plan (J-ESOP)” and the “officer remuneration board incentive plan (BIP) trust.”
Consequently, the shares 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 intreasury shares.

○ Table of Contents
1.

Qualitative Information for the Period under Review ..................................................................................................... 2(1) Overview of Business Results for the Period under Review ...................................................................................... 2(2) Forecast of Consolidated Business Results and other Forward-looking Information ................................................. 3
2. Quarterly Consolidated Financial Statements and Primary Notes ................................................................................ 4(1) Quarterly Consolidated Balance Sheets .................................................................................................................... 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income ............................................................. 6
Quarterly Consolidated Statements of Income ............................................................................................................... 6
Quarterly Consolidated Statements of Comprehensive Income ..................................................................................... 7(3) Notes to the Quarterly Consolidated Financial Statements ........................................................................................ 8(Notes on Going Concern Assumption) .......................................................................................................................... 8(Notes on Significant Changes in the Amount of Shareholders’ Equity) ......................................................................... 8(Changes in Accounting Policies) ................................................................................................................................... 8(Segment Information, etc.) ............................................................................................................................................ 9-1-

1. Qualitative Information for the Period under Review(1) Overview of Business Results for the Period under Review
The operating environment during the first quarter of the fiscal year ending November 30, 2023 (fromDecember 1, 2022 to February 28, 2023) showed signs of a gradual recovery due to the effects of various
measures implemented under the “living with COVID-19” policy. However, the outlook for the futureremains uncertain due to soaring raw material costs triggered by the situation in Ukraine and other factors,
accelerating inflation across the globe, and currency fluctuations.
Working against this backdrop, the Morito Group (the “Group”), which is mainly engaged in apparel, product,
and transportation businesses, faced difficult conditions, including soaring raw material prices for its
mainstay products, production cutbacks by automakers due to semiconductor shortages, delays in marinetransportation, and rising transportation costs, which all kept profits low, as well as stagnant demandcaused by slowing consumption in Europe, the U.S., and China. On the other hand, the Group enjoyedfavorable sales of accessories and products with superior functionality, including athletic shoes andmedical device-related products, which are unaffected by trends. Under its “Rideeco” initiative aimed atrealizing 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. In addition, the gross profit ratio improved significantly
due to an improvement in the cost of sales ratio through price negotiations and an increase in sales of highvalue-added products. The Group expects profitability to continue to improve in the second quarter andbeyond as it makes ongoing efforts to improve the efficiency of logistics operations.
As a result, for the first quarter of the fiscal year under review, net sales increased 2.1% year on year to¥11,804 million. Operating profit was up 1.5% to ¥619 million, ordinary profit grew 0.9% to ¥661 million,
and profit attributable to owners of the parent increased 14.9% to ¥516 million.
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 first quarter of the fiscal year underreview are as follows.
1Q
USD

141.39 (113.71)

EUR

144.26 (130.04)

CNY

19.85

(17.78)

HKD

18.07

(14.60)TWD

4.51(4.09)

VND

0.0058 (0.0050)

THB

3.89

(3.41)

MXN

7.19(5.48)(Note) The exchange rate of the same period in the previous fiscal year is stated in parentheses.

-2-Business results by segment are as follows.
Japan
In the Apparel Division, sales of accessories related to working wear and athletic shoes increased.
The Product Division enjoyed increases in sales of medical device-related products, products for one-coinshops (like 100-yen stores), and snowboarding and outdoor products, as well as higher revenues for the
kitchen appliance rental, sales, and cleaning business.
In the Transportation Division, sales of automotive interior components to Japanese automotive
manufacturers increased.
As a result, net sales grew 7.5% year on year to total ¥8,502 million, and segment profit rose 10.3% year
on year to reach ¥527 million.
Asia
In the Apparel Division, sales of accessories for casual wear and working wear sold in the European and
U.S. markets declined in China and Hong Kong due to China’s zero-COVID policy despite growing salesof baby wear accessories in China and Hong Kong and athletic shoes accessories in Vietnam.
In the Transportation Division, sales of automotive interior components to Japanese automotive
manufacturers decreased in China due to the semiconductor shortage and China’s zero-COVID policy.
As a result, net sales decreased 22.3% year on year to total ¥1,719 million, and segment profit dropped
0.3% year on year to total ¥219 million.
Europe and the U.S.
In the Apparel Division, sales of accessories related to casual wear declined while sales of accessories forleisure products increased.
In the Transportation Division, sales of automotive interior components to Japanese automotive
manufacturers increased.
As a result, net sales were up 10.2% year on year to total ¥1,582 million while segment loss came to ¥46
million (segment loss for the same period in the previous fiscal year was ¥18 million).

(2) Forecast of Consolidated Business Results and other Forward-looking Information
The consolidated financial forecast for the fiscal year ending November 30, 2023 remains unchanged
from what was announced on January 13, 2023. In the event that COVID-19 or the situation in Ukraine is
expected to affect the Group’s business performance, information about such an impact will be disclosed
as soon as it becomes evident.

-3-2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets
As of November 30, 2022

(Thousand yen)
As of February 28, 2023

10,399,699
9,255,694
2,847,664
6,953,716
1,076,907(52,481)
30,481,201

9,400,830
8,054,204
3,512,924
7,121,881
877,818(43,594)
28,924,064

4,547,309
5,619,621
10,166,930

4,540,648
5,297,073
9,837,721

2,712,342
1,154,268
3,866,611

2,451,839
1,042,216
3,494,055

4,465,618
286,915
1,150,405(145,760)
5,757,179
19,790,721
50,271,922

4,749,836
286,774
1,111,376(131,179)
6,016,807
19,348,585
48,272,649

4,684,932
940,625
50,000280,008
577,794393,205

3,991,315
990,60250,000280,008
371,131354,165

145,842

45,1402,237,096
9,309,505

1,875,711
7,958,074

1,423,294
37,4481,353,292
36,71245,55841,83388,46891,47425,968862,554
1,794,765
4,278,056
13,587,562

23,796
871,766
1,812,459
4,231,335
12,189,410

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims
Inventory
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (andother officers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for share awards
Provision for retirement benefits for
directors (and other officers)
Provision for share awards for directors(and other officers)
Provision for environmental measures
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities-4-As of November 30, 2022

(Thousand yen)
As of February 28, 2023

3,532,492
2,962,803
27,539,047(2,174,195)
31,860,146

3,532,492
2,980,337
27,551,558(2,131,088)
31,933,298

1,274,715

1,502,616(15,199)442,187
3,023,530(21,313)442,187
2,138,539

43,38039,3784,768,615

4,101,409

55,59736,684,360
50,271,922

48,531
36,083,239
48,272,649

Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
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-5-(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
The First Quarter accounting period

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating profit
Interest income
Dividend income
Gain on redemption of investment securities
Rental income from real estate
Share of profit of entities accounted forusing equity method
Subsidies for employment adjustment
Subsidy income
Other
Total non-operating profit
Non-operating expenses
Interest expenses
Derivative losses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sales of investment securities
Gain on reversal of share acquisition rights
Insurance claim income
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

December 1, 2021 –February 28, 2022
11,561,273
8,503,016
3,058,257
2,448,105
610,151(Thousand yen)
December 1, 2022 –February 28, 2023
11,804,902
8,572,048
3,232,853
2,613,475
619,378

2,244
10,204
18,945

3,257
9,524
17,95918,89016,061

13,995

1,054
18,082
8,754
75,345

20,451
84,0772,224
4,860
22,80029,885655,6122,459
18,95020,23841,648661,807

261
525
70,01670,803

824
141,392420
142,63752
52
726,363
258,805
18,308277,114449,249449,249558
558
803,887
261,914
25,672
287,587
516,299
516,299-6-

Quarterly Consolidated Statements of Comprehensive Income
The First Quarter accounting period

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 of tax
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of parent
Comprehensive income attributable to noncontrolling interests

December 1, 2021 –February 28, 2022
449,249(Thousand yen)
December 1, 2022 –February 28, 2023
516,299(175,215)

227,901(3,483)
263,828(6,119)(884,991)

3,406(4,001)(3)

5

88,531
537,781(667,206)(150,906)

537,781(150,906)

-

-

-7-

(3) Notes to the Quarterly Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.
(Notes on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable.
(Changes in Accounting Policies)(Adoption of Implementation Guidance on Accounting Standard for Fair Value Measurement)
The Group has adopted the Implementation Guidance on Accounting Standard for Fair Value Measurement(ASBJ Guidance No. 31, June 17, 2021) effective as of the beginning of the first quarter of the fiscal year
under review. In accordance with the transitional treatment set forth in paragraph 27-2 of the
Implementation Guidance on Accounting Standard for Fair Value Measurement, the Group has decided toapply the new accounting policy stipulated by the Implementation Guidance on Accounting Standard for
Fair Value Measurement prospectively. This has no effect on the quarterly consolidated financial
statements.

-8-

(Segment Information, etc.)
Segment informationI

For the first quarter of the fiscal year ended November 30, 2022

Information on amounts of net sales and profit (loss) by reportable segment and disaggregated revenue
Reportable Segment(Thousand yen)Amountrecorded in
Adjustment Consolidated(Note 1)
Financial
Statements(Note 2)

Japan

Asia

Europe & the
U.S.

Total

Apparel

2,459,489

1,417,126

1,166,113

5,042,730-

5,042,730

Product

4,354,531

186,903

13,833

4,555,268-

4,555,268

Transportation

1,098,026

608,584

256,664

1,963,274-

1,963,274

7,912,047

2,212,614

1,436,611

11,561,273-

11,561,273

7,912,047

2,212,614

1,436,611

11,561,273-

11,561,273

Intersegment sales or transfers

376,825

763,000

23,7101,163,536(1,163,536)

-

Total

8,288,872

2,975,614

1,460,322

12,724,809(1,163,536)

11,561,273

478,574

220,578(18,182)

680,969(70,817)610,151

Net sales

Revenue from contracts withcustomers
Net sales to externalcustomers

Segment profit (loss)(Notes) 1
2

II

The adjustment of ¥(70,817) thousand to segment profit (loss) includes corporate expenses of ¥(52,084)
thousand not allocated to the reportable segments, and other in the amount of ¥(18,733) thousand.
The amount of segment profit (loss) has been adjusted with operating profit in the Quarterly Consolidated
Statements of Income.

For the first quarter of the fiscal year ending November 30, 2023

Information on amounts of net sales and profit (loss) by reportable segment and disaggregated revenue
Reportable Segment(Thousand yen)Amountrecorded in
Adjustment Consolidated(Note 1)
Financial
Statements(Note 2)

Japan

Asia

Europe & the
U.S.

Total

Apparel

2,548,835

1,367,384

1,242,761

5,158,981-

5,158,981

Product

4,752,723

165,659

2,533

4,920,915-

4,920,915

Transportation

1,201,413

186,146

337,444

1,725,004-

1,725,004

8,502,971

1,719,191

1,582,739

11,804,902-

11,804,902

8,502,971

1,719,191

1,582,739

11,804,902-

11,804,902

Intersegment sales or transfers

482,676

1,373,307

14,532

1,870,516(1,870,516)

-

Total

8,985,648

3,092,498

1,597,271

13,675,418(1,870,516)

11,804,902

527,680

219,863(46,255)

701,289(81,910)619,378

Net sales

Revenue from contracts withcustomers
Net sales to externalcustomers

Segment profit (loss)(Notes) 1
2

The adjustment of ¥(81,910) thousand to segment profit (loss) includes corporate expenses of ¥(52,808)
thousand not allocated to the reportable segments, and other in the amount of ¥(29,101) thousand.
The amount of segment profit (loss) has been adjusted with operating profit in the Quarterly Consolidated
Statements of Income.

-9-