(Unaudited)
April 14, 2016
MORITO CO., LTD.
Financial Statement (Unaudited)
For the First Quarter of the Fiscal Year ended November 30, 2016
(Translated from the Japanese original)
Corporate Information
Code：9837 Listings：Second Section of the Tokyo Stock Exchange(URL
http: www.morito.co.jp/english/index.html )Representative： Takaki Ichitsubo
Representative Director and President
Contact：Kenji Kojima
Director, Executive Officer and General Manager of Control Division
Telephone: +81-6-6252-3551
Scheduled date of filing of Quarterly Report
Scheduled date of dividend payment:
Supplementary explanation material for quarterly financial results:
Presentation meeting for quarterly financial results:

April 14, 2016
－NoneNone(Amounts rounded down)
1. Consolidated Financial Results for the First Quarter of Fiscal Year 2016(December 1, 2015 through February 29, 2016)(1) Consolidated Financial Results(Percentages indicate year-on-year changes)

Net sales
Millions of yen

Operating income%

Millions of yen%

Ordinary income
Millions of yen%

Net income
Millions of yen%

1Q of
10,019
322
248
114
△67.4
△2.6
△10.5
△42.3
FY 2016
1Q of10,287
23.3
360
45.7
430
50.335030.6
FY 2015(Note) Comprehensive income: △482million yen (△129.1%) (1Q of FY 2016)
1,655million yen (160.7%) (1Q of FY 2015)

1Q ofFY 2016
1Q ofFY 2015

Net income
Per shareYen
3.99

Fully diluted net
Income per share
Yen-12.09-(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
Millions of yen
Millions of yen%
1Q of
45,29030,16866.6
FY 2016
FY 2015
47,331
31,113
65.7(Reference) Equity capital: 30,168million yen (1Q of FY 2016)
31,113 million yen (FY 2015)
2. DividendsFirstquarterendYen-Dividends per share
SecondThird
Fiscalquarter- quarteryearend
endend
Yen
Yen
Yen
7.00
7.50

Total(Annual)Yen
FY 2015
14.50FY 2016
FY 2016
8.00
8.00
16.00
(Forecast)(Note)
Revision of consolidated earnings forecast to the latest announcement: None

(Unaudited)
3. Consolidated Forecast for FY 2016 (December 1, 2015 through November 30, 2016)(Percentages represent changes from corresponding period of previous year)
Net Sales
Operating income
Ordinary profit
Millions of yen%
Millions of yen%
Millions of yen%Half year
21,6000.89003.0550△12.4
Full year
45,000
3.9
2,000
16.2
2,100
12.2
Net income
Net income per share
Millions of yen%
Yen
Half year
550
6.5
19.11
Full year
1,500
4.7
52.13
(Note)
Revision of consolidated earnings forecast to the latest announcement: None
*Notes(1) Changes of important subsidiaries during the period (changes of specific subsidiaries in accordance with changes in thescope of consolidation): None
Newly included: None
Extended company: None
(2) Adoption of special accounting treatment for preparing quarterly consolidated financial statements: None(3) Changes in accounting policies and changes or restatement of accounting estimates(i)
Changes in accounting policies caused by revision of accounting standards:
Yes(ii)
Changes in accounting policies other than (i):
None
(iii)
Changes in accounting estimates:
None
(iv)
Restatements:
None(Note) For details, please refer to ‘Matters Concerning Summary Information (Note) (3) Changes in accounting policy, Changes
in accounting estimates and Revision restated’ on page 3 of the Attachment.
(4) Number of outstanding shares (common shares）(i)
Number of outstanding shares, including treasury shares at end of period:
30,800,000 shares (as of February 29, 2016)
30,800,000 shares (as of November 30, 2015)(ii) Number of shares of treasury stock at end of period:
2,322,644 shares(as of February 29, 2015)
2,023,820 shares(as of November 30, 2015)(iii) Average outstanding number of shares during the period:
28,590,305 shares(the First quarter of FY 2016)
28,973,484 shares(the First quarter of FY 2014)*Status of execution of the quarterly review of financial statement
At the time of publication of this quarterly financial results release, the review procedures for the quarterly financial statements
based on the Financial Instruments and Exchange Law were completed.
*Disclosure and other special notes regarding performance forecasts
The forecast above are based on information available to management as of the date on which these performance-related figures
were disclosed, and various factors may cause actual results to differ from these forecasts. For issues to keep in mind whenusing the forecasts and criteria conditioned upon the forecasts, please refer to”1Qualitative Information for the Period
under Review(1) Business Performance” on page 4
We have also introduced “Stock Granting Trust (J-ESOP)”and “Board Incentive Plan(BIP)”. Consequently, the shares held byTrust and Custody Service Bank, ltd. and The Master Trust Bank of Japan, ltd. are included in the treasury shares.

(Unaudited)Index
1. Qualitative Information for the Period under Review ...............................................................................................4(1) Business Performance ..........................................................................................................................................4(2) Forecast of Consolidated Business Results and Other Forward-looking Information .................................................4
2. Matters Concerning Summary Information .............................................................................................................5(1)Changes in Important Subsidiaries during the period under Review .........................................................................5(2)Adoption of Special Accounting Treatment for Preparing Quarterly Consolidated Financial Statement .......................5(3)Changes in Accounting Policies, Changes in Accounting Estimates and Revision Restated ........................................53. Quarterly Consolidated Financial Statements ..........................................................................................................6(1)Quarterly Consolidated Balance Sheets ...........................................................................................................6(2)Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ...............8Quarterly Consolidated statements of income .............................................................................................................8(3)Notes regarding Quarterly Consolidated Financial Statements.........................................................................10[Notes on assumption of going concern] ......................................................................................................................10[Notes on a Significant Change in Shareholders’ Equity] ...............................................................................................10[Segment Information]................................................................................................................................................10(Unaudited)

1. Qualitative Information for the Period under Review(1) Business Performance
In the First quarterly (From 1st December, 2015 to 29th February, 2016) of the fiscal year ended November 30th, 2016, theJapanese economy has shown signs of modest recovery by weakening yen, additional money easing. However, from thebeginning of 2016, the economy situation got uncertain because of the concern for the world economy situation and theslowdown in Chinese economy which made yen appreciation and stock market down.
In the global economy, the economic recovery of the U.S. economy is maintaining firm, but it is still uncertain because of Asianemerging countries’ economy, significant exchange rate fluctuation, significant decline of oil prices.
In such a situation, our group is moving forward a growth strategy by the development of high valued Japan made items,
expansion of a global sales channel under 7 th mid-term management plan, and will promote the realization of value creation
which the era seeks, expand our business in not only existing market such ASEAN, china, western, but also in untapped market
to contribute our business.
As a result, in the current quarterly performance reach net sales ¥10,019million (decreased by 2.6% from a year earlier),
operating income ¥322 million (decreased by 10.5% from a year earlier), ordinary income ¥248 million (decreased by 42.3%
from a year earlier), net income ¥114 million (decreased by 67.4% from a year earlier).
The exchange rate used for the consolidated financial statement of the current quarter end as below:¥120.54 to the U.S. dollar, ¥131.67 to the euro, ¥18.34 to the Chinese yuan, ¥15.55 to the Hong Kong dollar,¥3.68 to the Taiwan dollar, ¥0.0053 to the Vietnamese dong, ¥3.35 to the Thai baht.
The exchange rate used for the consolidated financial statement of the year earlier quarter end as below:¥120.53 to the U.S. dollar, ¥146.54 to the euro, ¥19.34 to the Chinese yuan, ¥15.54 to the Hong Kong dollar,¥3.79 to the Taiwan dollar, ¥0.0056 to the Vietnamese dong, ¥3.65 to the Thai baht.

Segment information as below[Japan]As for the apparel division, sales of the accessories for and sports and outdoor apparel manufacturer in Japan are increased.
In the consumer product division, sales of accessories for camera, health-related items, magi tape®, automobiles aredencreased.
As a result, net sales were ¥6,485 million (decreased by 3.4% from a year earlier).
[Asia]
As for the apparel division, sales of the accessories for EU and U.S. infant’s wear in H.K., for Japanese apparel manufacture in
Thailand are increased.
In the consumer product division, sales of the automobile interior component for Japanese auto makers in Shanghai isdecreased.
As a result, net sales were ¥199 million (increased by 1.1% from a year earlier).
[Europe and the U.S.]
As for the apparel division, sales of the accessories for medical industry and uniform in U.S. is increased, but it is decreased inEU.
In the consumer product division, sales of automobile interior article for Japanese automobile manufacture in the U.S. isincreased, but it is decreased in EU. Sales of accessories for camera in EU is decreased, neither.
As a result, net sales were ¥1,543 million (decreased by 3.8% from a year earlier).

(2) Forecast of Consolidated Business Results and Other Forward-looking Information
Currently, there has been no change in the consolidated forecast of FY2016.

4

(Unaudited)
2. Matters Concerning Summary Information(1)Changes in Important Subsidiaries during the period under Review
Not applicable(2)Adoption of Special Accounting Treatment for Preparing Quarterly Consolidated Financial Statement
Not applicable.
(3)Changes in Accounting Policies, Changes in Accounting Estimates and Revision Restated
Changes in Accounting Policies
Standards such as the Accounting Standard for Business Combinations (ASBJ Statement No.21 of September 13, 2013), theAccounting Standard for Consolidated Financial Statements (ASBJ Statement No. 22 of September 13, 2013), and the AccountingStandard for Business Divestitures (ASBJ Statement No.7 of September 13, 2013) have been applied from the first quarter of thefiscal year under review. The purpose for applying these standards was to change the method for recording the difference fromchanges in the Company’s equity in its subsidiaries that remain controlled by the Company as capital surplus and as an expense in
the consolidated fiscal year in which expenses related to acquisition are incurred. For business combinations implemented after
the beginning of the first quarter of the fiscal year under review, the method will be changed to one that reflects the revision of
distributed amounts of acquisition costs by determining provisional accounting treatment in the quarterly consolidated financial
statements for the quarterly consolidated accounting period to which the date of business combination belongs. In addition, theCompany has changed the presentation of quarterly net profit and other items and the presentation of minority interests tonon-controlling interests. To reflect this change, the quarterly consolidated financial statements and consolidated financial
statements for the nine-month period ended December 31, 2014 and fiscal year ended March 31, 2015 have been replaced.
The application of the Accounting Standard for Business Combinations and the other standards follows the transitional treatment
specified in Article 58-2 (4) of the Accounting Standard for Business Combinations, Article 44-5 (4) of the Accounting Standard
for Consolidated Financial Statement, and Article 57-4 (4) of the Accounting Standard for Business Divestiture. The application ofthese standards has been under way since the beginning of the first quarter of the fiscal year under review, and will continue to be
applied going forward.

5(Unaudited)3.

Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets
FY 2015(As of November 30, 2015)
Thousands of yen

FY 2016(As of February 29, 2016)
Thousands of yen

AssetsCurrent assets
Cash and deposits

10,010,892

9,132,236

Notes and accounts receivable

10,755,928

10,098,662

Inventory

4,403,602

4,842,070

Other current assets

1,035,105

869,759

Allowance for doubtful accounts
Total current assets△38,959△39,735

26,166,569

24,902,993

5,926,237
4,077,419
10,003,656

5,998,197
3,937,275
9,935,472

Goodwill

3,687,790

3,642,670

Other Intangible fixed assets

1,549,867

1,515,649

Total intangible fixed assets

5,237,657

5,158,319

4,634,984

3,861,862

400,076

400,293

Other fixed assets968,566

1,166,189

Allowance for doubtful account△80,393△134,723

Total investments and other fixed assets

5,923,234

5,293,622

Total fixed assets

21,164,548

20,387,414

Total assets

47,331,118

45,290,408

Notes and accounts payable

4,502,734

4,628,059

Short-term loans payable

4,960,000

4,960,000

Current portion of long-term debt

375,396375,396

Accrued tax payable

616,237

151,552

Reserve for bonuses

164,592

158,461

Reserve for director’s bonuses

72,51145,992Other current liabilities

1,607,517

1,284,827

Total current liabilities

12,298,989

11,604,291

536,477442,628

Provision for director’s retirement benefit

9,804

9,297

Reserve for benefit allowance

54,75856,133

Provision for environmental measures

20,64022,123Fixed assets
Tangible fixed assets
Land
Other tangible fixed assets
Total tangible fixed assets
Intangible fixed assets

Investments and other fixed assets
Investment securities
Net defined benefit asset

Liabilities
Current liabilities

Fixed liabilities
Long-term debt

6

(Unaudited)829,319

834,437

Other fixed liabilities

2,443,694

2,130,547

Total fixed liabilities

3,918,507

3,517,759

16,217,496

15,122,050

Capital3,532,492

3,532,492

Capital surplus

3,498,724

3,498,724

Retained earnings

22,436,316

22,340,184

Treasury stock△956,696△1,209,219

Total shareholders’ equity

28,510,835

28,162,181

1,625,548

1,060,853

Deferred gains or losses on hedges△1,069△6,298Difference in revaluation of land

△514,664△514,664

Foreign currency translation adjustment

1,403,231

1,385,083

Remeasurement of defined benefit plans

89,73981,2022,602,786

2,006,176--

Total net assets

31,113,622

30,168,357

Total liabilities and net assets

47,331,118

45,290,408

Net defined benefit liability

Total liabilities
Net Assets
Shareholders' equity

Other comprehensive income
Valuation difference on available-for-sale securities

Total other comprehensive income
Minority interests

7

(Unaudited)(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Quarterly Consolidated statements of income
The Third Quarter accounting period

Net sales
Cost of sales

FY 2015(December 1, 2014 throughFebruary 29, 2015)
Thousands of yen
10,287,921
7,642,093

FY 2016(December 1, 2015 throughFebruary 29, 2016)
Thousands of yen
10,019,651
7,417,945

Gross profit

2,645,828

2,601,706

Total selling, general and administrative expense

2,285,761

2,279,618

360,066

322,088

Interest received

5,629

5,882

Dividends received

20,623

10,894

Rent on real estate

19,59419,025

Foreign exchange gains

27,514-Equity in earnings of affiliates

5,880

13,968Other non-operating income

33,483

5,690

Total non-operating income

112,725

55,461

Interest paid

5,600

4,706

Cash discount on sales

21,63821,611-

76,067

Others non-operating expense

15,171

26,729Total non-operating expense

42,411

129,114430,380

248,435

Gains on sales of fixed assets

158,245

1,682

Gains on sales of securities

24,869-Gain on liquidation of subsidiaries and affiliates

183,115

1,682

Total extra ordinary income

158,245

1,682

4,136

953

Loss on sales of fixed assets

-

9,892

Total extra ordinary loss

4,136

10,846

Net income before taxes and other adjustment

609,359

239,272

Corporate, inhabitant and business taxes

251,070

89,254

Adjustments to corporate and other taxes

7,904

35,802

Total income taxes

258,974

125,056

Net income

350,384

114,215

Other gain(loss) on available-for-sale securities

257,434△564,695

Deferred gains or losses on hedges△1,353△5,229Operating Income
Non-operating income

Non-operating expenses

Exchange Loss

Ordinary Income
Extra ordinary income

Extra ordinary loss
Loss on disposal of fixed assets

Other comprehensive income8(Unaudited)
Foreign currency translation adjustment

1,058,469△18,147

Remeasurements of defined benefit plans
Total other comprehensive income△9,0901,305,461△8,537△596,610

Comprehensive income

1,655,846△482,394

1,655,846△482,394(Breakdown)Comprehensive income attribute to the parent
Comprehensive income attribute to the minority
shareholders

9(Unaudited)(3) Notes regarding Quarterly Consolidated Financial Statements[Notes on assumption of going concern]
Not applicable.
[Notes on a Significant Change in Shareholders’ Equity]
Not applicable.
[Segment Information]
1. The First quarter of FY 2015 (December 1, 2014 through February 28, 2015)
The information on net sales, income or loss, assets and other items by reportable segment

Japan

Reportable Segment
Asia
EU and US

Total(Thousands of yen)
Adjustment
Consolidate(Note 1)
dStatement
Amount(Note 2)

Net Sales
Sales to external customers
6,713,283
1,969,144
1,605,493
10,287,921－ 10,287,921
Inter segment sales and666,946
733,748
14,2101,414,905－△1,414,905
transfer
Total
7,380,229
2,702,892
1,619,704
11,702,827
10,287,921△1,414,905
Segment income
304,735
114,89758,453
478,085
360,066△118,019(Notes)
1. Adjustment of △¥118,019 thousand includes △¥86,997 thousand -corporate expenses that are not distributed to eachreportable segment and other △¥31,021 thousand.
2. The amounts for income or losses in the reportable segments were subsequently adjusted with the amount of operating
income on the quarterly consolidated profit and loss statement.
2.

The Third Quarter of FY 2016 (December 1, 2015 through February 29, 2016)
The information on net sales, income or loss, assets and other items by reportable segment

JapanReportable Segment
Asia
EU and US

Total(Thousands of yen)
Adjustment
Consolidate(Note 1)
dStatement
Amount(Note 2)

Net Sales
Sales to external customers
6,485,661
1,990,191
1,543,799
10,019,651
10,019,651－
Inter segment sales and558,878
481,654
25,303
1,065,837－△1,065,837
transferTotal
7,044,539
2,471,845
1,569,103
11,085,489
10,019,651△1,065,837
Segment income
227,398
117,332
63,483
408,213
322,088△86,125(Notes)
1. Adjustment of △¥86,125 thousand includes △¥78,816 thousand-corporate expenses that are not distributed to eachreportable segment and other △¥7,308 thousand.
2. The amounts for income or losses in the reportable segments were subsequently adjusted with the amount of operating
income on the consolidated profit and loss statement.

10