Note: This document is a translation of a part of the original Japanese version and provided for reference purposes only. In the event of any
discrepancy between the Japanese original and this English translation, the Japanese original shall prevail.

Consolidated Financial Results for the Six Months of the Fiscal Year Ending
November 30, 2023 [Japanese GAAP]
July 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 Manager ofContact:
Corporate Administrative Division and Division Manager of Business (Phone) +81-6-6252-3551
Management Division
Scheduled date of filing
Scheduled date of commencing
July 14, 2023
August 8, 2023
dividend payments:
quarterly securities report:
Availability of supplementary briefing material on quarterly financial results: Available
Schedule of quarterly financial results briefing session: Yes (for securities analysts and institutional investors)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months of the Fiscal Year Ending November 30, 2023
(December 1, 2022 to May 31, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen

Six months ended May
31, 2023
Six months ended May
31, 2022% Millions of yen% Millions of yen% Millions of yen%

24,148

4.1

1,305

16.8

1,459

19.6

1,308

48.7

23,207

9.3

1,117

44.1

1,219

37.8

879

64.9

Six months ended
Six months ended(Note) Comprehensive income:
781 million yen[ (50.5) %]1,577 million yen[ 12.7%]
May 31, 2023
May 31, 2022
Basic earnings per
share

Diluted earnings per
share

Yen

Yen

48.93

48.85

32.51

－

Six months ended May
31, 2023
Six months ended May
31, 2022(2) Consolidated Financial Position

Total assets

Net assets

Millions of yen

Six months ended May
31, 2023
FY2022Six months ended(Reference) Equity:
May 31, 2023

Equity ratio

Millions of yen%

48,54637,00776.2

50,271

36,68472.9

FY2022

36,628 million yen

36,975 million yen

2. Dividends
Annual dividends
1st quarterend

2nd quarterend

3rd quarterend

Yen

Yen

Yen

Yen

Yen

－

18.50

32.00

－
None

27.00

54.00

FY2022－13.50
FY2023－27.00
FY2023 (Forecast)(Note) Revisions to the latest announcement of dividend forecast:

Year-endTotal

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 to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Millions of yen% Millions of yen% Millions of yen

Full year
50,000
3.1
2,300
8.6
2,450
(Note) Revisions to the latest announcement of performance forecast:― 1 ―% Millions of yen

4.6
None

1,800

%

Yen

7.5

67.40

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

No(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 accounting standards:

Yes2) 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
May 31, 2023:of the period (including treasury shares):2) Total number of treasury shares at the
May 31, 2023:
end of the period:3) Average number of shares during the
For the six months ofperiod:the fiscal year ending
November 30, 2023:

30,000,000

November 30, 2022:

30,000,000

3,212,300

November 30, 2022:

3,295,500

For the six months of
26,746,214 the fiscal year ended
November 30, 2022:

27,064,114*

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 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 “(2) Forecast of Consolidated Business Results and other Forward-looking Information”
in “1. Qualitative Information for the Period under Review” on page 5.
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,
the shares of the Company held by Custody Bank of Japan, Ltd. (trust account E) and The Master Trust Bank ofJapan, Ltd. (officer remuneration BIP trust account), respectively, are included in treasury shares.

― 2 ―Table of Contents

1. Qualitative Information for the Period under Review..................................................................................

4(1)

Overview of Business Results for the Period under Review..............................................................

4(2)

Forecast of Consolidated Business Results and other Forward-looking Information........................

5

2. Quarterly Consolidated Financial Statements and Primary Notes.............................................................

6(1)

Quarterly Consolidated Balance Sheets............................................................................................

6(2)

Quarterly Consolidated Statements of Income and Comprehensive Income....................................

8

Quarterly Consolidated Statements of Income.....................................................................................

8

Quarterly Consolidated Statements of Comprehensive Income..........................................................

9(3)

Consolidated Statements of Cash Flows...........................................................................................

10

(4)

Notes to the Quarterly Consolidated Financial Statements...............................................................

12(Notes on Going Concern Assumption)................................................................................................

12(Notes on Significant Changes in the Amount of Shareholders’Equity).............................................

12(Changes in Accounting Policies).........................................................................................................

12(Segment Information, Etc.)..................................................................................................................

13

― 3 ―

1.

Qualitative Information for the Period under Review(1) Overview of Business Results for the Period under Review
The operating environment during the six months of the fiscal year ending November 30, 2023 (December 1, 2022,
to May 31, 2023) remained on a recovery track due to the effects of various measures for the “living with
COVID-19” policy. However, the outlook for the future remains uncertain due to soaring raw material costs
triggered by the situation in Ukraine and other factors, accelerating inflation across the globe, the possibility of adownturn in overseas economies (mainly Europe and the U.S.), and currency fluctuations.
Working against this backdrop, the Morito Group (the “Group”), which is mainly engaged in the 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, and other factors, which all kept
profits low, as well as stagnant demand caused by slowing consumption in Europe, the U.S., and China. On the other
hand, the Group enjoyed favorable sales of accessories and products with superior functionality, including athletic
shoes, medical-device-related products, and outdoor products, which are unaffected by trends. Under its“Rideeco” initiative aimed at realizing a sustainable society, the Group moved forward with the development andsales of environmentally friendly products, using discarded fishing nets and fabric scraps from garment factories, witha focus on winning new business contracts. The Group also enjoyed higher operating profit thanks to the improved
gross profit ratio due to increased sales of high-value-added products and the enhanced efficiency of logistics
operations.
As a result, for the six months of the fiscal year under review, net sales increased 4.1% year on year to 24,148 million
yen. Operating profit was up 16.8% to 1,305 million yen, ordinary profit grew 19.6% to 1,459 million yen, and profit
attributable to owners of the parent increased 48.7% to 1,308 million yen.

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 six months of the fiscal year under review are as follows.
1Q

2Q

USD

141.39(113.71)132.43(116.34)EUR

144.26(130.04)

142.17(130.40)

CNY

19.85

(17.78)19.35(18.31)

HKD

18.07

(14.60)16.89(14.90)TWD

4.51(4.09)

4.36(4.16)

VND

0.0058(0.0050)

0.0056(0.0051)

THB

3.89

(3.41)

3.91(3.52)

MXN

7.19(5.48)

7.11(5.67)(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 athletic shoes as well as for bags
although sales of medical wear accessories for the European and the U.S. markets declined.
The Product Division enjoyed increases in sales of medical-device-related products, products for one-coin shops(like 100-yen stores), and snowboarding and outdoor products, as well as higher revenues for the kitchen appliancerental, sales, and cleaning business.
In the Transportation Division, sales of automotive interior components to Japanese automotive manufacturers
increased.
As a result, net sales grew 7.6% year on year to total 17,328 million yen, and segment profit rose 28.6% year on year
to reach 1,112 million yen.
Asia
The Apparel Division enjoyed growing sales of baby wear accessories in China and Hong Kong as well as athleticshoe accessories and working-wear-related products in Vietnam although sales of casual wear and working wear
accessories for the European and U.S. markets declined in China and Hong Kong.
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 12.5% year on year to total 3,583 million yen while segment profit rose 19.1% year
on year to total 374 million yen.
Europe and the U.S.
In the Apparel Division, sales of accessories related to casual wear declined while sales of accessories for leisureproducts increased.
In the Transportation Division, sales of automotive interior components to Japanese automotive manufacturers
increased.
As a result, net sales increased 7.9% year on year to total 3,236 million yen while segment loss came to 31 million
yen (segment profit for the same period in the previous fiscal year was 85 million yen).

(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 wasannounced on January 13, 2023. In the event that the situation in Ukraine is expected to affect the Group’s businessperformance, information about such an impact will be disclosed as soon as it becomes evident.

― 5 ―2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
As of November 30, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Inventories
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 asset
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 - operating
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for share awards
Provision for retirement benefits for directors (andother officers)
Provision for share awards for directors (and otherofficers)
Provision for environmental measures
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities― 6 ―As of May 31, 2023

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

10,763,282
8,111,358
3,071,347
6,524,967
733,950(47,014)
29,157,892

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

4,541,110
5,204,844
9,745,955

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

2,396,984
1,032,288
3,429,273

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

4,857,981
290,200
1,197,593(132,536)
6,213,239
19,388,467
48,546,360

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

3,166,773
1,030,947
50,000280,008
587,952
341,120

145,842

75,9262,237,096
9,309,505

1,860,750
7,393,479

1,423,294
37,4481,283,290
51,67545,55845,95888,46894,481

25,968862,554
1,794,765
4,278,056
13,587,562

23,947864,970
1,781,277
4,145,600
11,539,080

(Thousands of yen)
As of November 30, 2022
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets― 7 ―As of May 31, 2023

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

3,532,492
3,021,159
28,343,825(2,163,690)
32,733,785

1,274,715(15,199)442,187
3,023,530
43,3804,768,615
55,597－36,684,360

1,588,806
20,091
442,187
2,154,755
35,3764,241,217
32,277－37,007,279

50,271,922

48,546,360

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
The six-month period
For the six months
ended May 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Gain on redemption of investment securities
Rental income from real estate
Foreign exchange gains
Share of profit of entities accounted for using equity
methodSubsidies for employment adjustment
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on derivatives
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
Gain on liquidation of subsidiaries
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Loss on valuation of golf club membership
Claim settlement money
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― 8 ―(Thousands of yen)
For the six months
ended May 31, 2023

23,207,081
17,093,342
6,113,739
4,995,766
1,117,973

24,148,895
17,607,103
6,541,792
5,236,344
1,305,447

5,158
30,569－38,524－8,530
34,095
17,95936,89728,85147,41830,896

3,413－

18,082
12,192
155,361

2,459
64,774
224,464

5,649
－
594
47,21353,4581,219,876

4,619
37,435－28,776
70,831
1,459,081

123,161－525
70,016－
193,703

10,650195,868787－
130,102337,409

569
648－
48,64849,866
1,363,712
590,479(106,710)
483,768
879,944－879,944

－
3,845
1,690
－
5,536
1,790,953
547,416(65,029)482,387
1,308,566－
1,308,566

Quarterly Consolidated Statements of Comprehensive Income
The six-month period(Thousands of yen)
For the six months
ended May 31, 2023

For the six months
ended May 31, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests― 9 ―879,944

1,308,566(193,185)(9,819)894,073
6,812

314,090
35,289(868,775)(8,003)1

0697,882
1,577,826(527,398)
781,168

1,577,826

781,168－－(3) Consolidated Statements of Cash Flows
For the six months
ended May 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in provision for bonuses
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits
for directors (and other officers)
Increase (decrease) in provision for share awards
Increase (decrease) in provision for share awards for
directors (and other officers)
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Subsidies for employment adjustment
Subsidy income
Loss (gain) on liquidation of subsidiaries
Share of loss (profit) of entities accounted for using
equity method
Gain on reversal of share acquisition rights
Loss (gain) on sale of non-current assets
Loss (gain) on sale of investment securities
Loss (gain) on redemption of investment securities
Loss on valuation of golf club membership
Loss on retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Proceeds from subsidies for employment adjustment
Subsidies received
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from redemption of investment securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from collection of loans receivable
Purchase of membership
Other, net
Net cash provided by (used in) investing activities― 10 ―(Thousands of yen)
For the six months
ended May 31, 2023

1,363,712
503,354
123,620(10,650)
22,688(4,554)

1,790,953
480,709138,140(42,716)(11,096)(1,309)

4,250

400

6,747

14,227719

6,012

24,610(35,728)
5,649(3,413)(18,082)－(12,394)(42,625)
4,619－(2,459)(130,102)(47,418)(30,896)(525)(122,591)－－－
648(32,248)(939,221)(42,783)(257,214)
541,569
35,728(5,689)17,70818,082(445,699)
161,699(787)(10,650)(195,868)(17,959)
1,690
3,845
722,377
212,824(1,276,533)
51,3891,651,791
42,625(4,756)－2,459(531,611)
1,160,507(82,325)
87,123(11,321)－－(352,858)
211,863(55,454)
3,000－(4,035)－
4,798(6,726)
221,831
59,252(147,339)
12,617(26,231)3,000(2,736)(6,124)(204,009)

112,341

For the six months
ended May 31, 2022
Cash flows from financing activities
Repayments of lease liabilities
Repayments of long-term borrowings
Purchase of treasury shares
Proceeds from exercise of employee share options
Dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period― 11 ―(Thousands of yen)
For the six months
ended May 31, 2023

(110,744)(254,616)(349,117)－(473,272)(1,187,750)(111,791)(140,004)(136,725)
183,053(503,789)(709,255)

215,028(199,838)(1,015,031)
11,020,111
10,005,079

363,754
10,396,188
10,759,943

(4) 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 to apply 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.

― 12 ―

(Segment Information, Etc.)
Segment informationI

For the six months of the fiscal year ended November 30, 2022
Information on amounts of net sales and profit (loss) by reportable segment and disaggregated revenue(Thousands of yen)AmountReportable Segment
recorded in
Adjustment Consolidated
Financial
Europe &(Note 1)
Japan
Asia
Total
Statements
the U.S.
(Note 2)
Net sales
Apparel

5,434,191

2,665,632

2,468,123

10,567,947－

10,567,947

Product

8,603,897

352,043

25,692

8,981,633－

8,981,633

Transportation

2,070,761

1,079,910

506,829

3,657,501－

3,657,501

Revenue from contracts withcustomers

16,108,850

4,097,585

3,000,645

23,207,081－

23,207,081

Net sales to external customers

16,108,850

4,097,585

3,000,645

23,207,081－

23,207,081

Intersegment sales or transfers

919,484

1,490,219

38,3232,448,027(2,448,027)

－

Total

17,028,335

5,587,805

3,038,968

25,655,109(2,448,027)

23,207,081

864,814314,388

85,4391,264,642(146,669)

1,117,973

Segment profit(Note) 1 The adjustment of (146,669) thousand yen to segment profit includes corporate expenses of (101,425) thousand
yen not allocated to the reportable segments, and other in the amount of (45,244) thousand yen.
2 The amount of segment profit has been adjusted with operating profit in the Quarterly Consolidated Statementsof Income.
II

For the six months of the fiscal year ending November 30, 2023
Information on amounts of net sales and profit (loss) by reportable segment and disaggregated revenue(Thousands of yen)AmountReportable Segment
recorded in
Adjustment Consolidated
Financial
Europe &(Note 1)
Japan
Asia
Total
Statements
the U.S.
(Note 2)

Net sales
Apparel

5,859,661

2,826,265

2,545,273

11,231,200－

11,231,200

Product

9,023,921

278,108

11,937

9,313,968－

9,313,968

Transportation

2,444,653

479,295

679,777

3,603,726－

3,603,726

Revenue from contracts withcustomers

17,328,236

3,583,670

3,236,988

24,148,895－

24,148,895

Net sales to external customers

17,328,236

3,583,670

3,236,988

24,148,895－

24,148,895

Intersegment sales or transfers

930,569

2,225,763

48,606

3,204,939(3,204,939)

－

Total

18,258,806

5,809,433

3,285,595

27,353,835(3,204,939)

24,148,895

Segment profit (loss)

1,112,497

374,570(31,612)

1,455,456(150,008)

1,305,447(Note) 1 The adjustment of (150,008) thousand yen to segment profit (loss) includes corporate expenses of (113,987)
thousand yen not allocated to the reportable segments, and other in the amount of (36,021) thousand yen.
2 The amount of segment profit (loss) has been adjusted with operating profit in the Quarterly Consolidated
Statements of Income.

― 13 ―