(Unaudited)

April 13, 2020
MORITO CO., LTD.
Financial Statement (Unaudited)
For the First Quarter of the Fiscal Year ended November 30, 2020
(Translated from the Japanese original)
Corporate Information
Code：9837 Listings in First Section of the Tokyo Stock Exchange(URL : http://www.morito.co.jp/hd_en/ )Representative： Takaki Ichitsubo
Representative Director and President
Contact：
Makoto Tsuji
Managing Director of General Affairs Dept.
Telephone: +81-6-6252-3551
April 14, 2020
－YesNone(Amounts rounded down)
1. Consolidated Financial Results for the First Quarter of the Fiscal Year 2020(December 1, 2019 throughFebruary 29, 2020)(1) Consolidated Financial Results(Percentages indicate year-on-year changes)
Net sales
Operating income
Ordinary income
Net income%%%%
Millions of yen
Millions of yen
Millions of yen
Millions of yen
1Q of FY 2020
11,171.0.2
336
306
169
△9.2
△11.8
△19.7
1Q of FY 201911,145
10.5
370
3.2
347
11.4
210 △10.5
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:(Note) Comprehensive income : △100 million yen ( -%) (1Q of FY2020)

1Q of FY 2020
1Q of FY 2019

Net income
Per shareYen
6.17
7.65

△204 million yen (-%)(1Q of FY 2019)

Fully diluted net
Income per share
Yen－－(2) Consolidated Financial Position
Total assets
Millions of yen
1Q of FY 2020
45,569FY 2019
47,185

Net assets
Millions of yen
32,26132,725(Reference) Equity capital : 32,204 million yen (1Q of FY 2020)

Equity ratio%
70.7
69.2
32,667 million yen (FY 2019)

2. Dividends
Firstquarter-endYen

Dividends per share
SecondThird
Fiscalquarter-end
quarter-endyear-end
Yen
Yen
Yen
13.00
13.00

AnnualYen
26.00

FY 2019
FY 2020
FY 2020
13.25
13.25(Forecast)(Note) Revisions of dividend forecast to the latest announcement: None

26.50

3. Consolidated Forecast for FY 2020 (December 1, 2019 through November 30, 2020)(Percentages represent changes from corresponding period of previous year)
Net Sales
Millions ofyen

Ordinary profit

Operating income%Millions ofyen

Millions ofyen%

Full year
47,000
2.2
1,900
9.6
1,900(Note) Revision of performance forecast to the latest announcement: None1%
6.8

Net income
per shareNet income
Millions ofyen

1,450%
3.4

Yen
52.96

(Unaudited)*Notes(1) Changes of important subsidiaries during the period (changes of specific subsidiaries in accordance withchanges in the scope 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:(ii)
Changes in accounting policies other than (i):(iii)
Changes in accounting estimates:(iv)
Restatements:

Yes
None
None
None

(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 28, 2020)
30,800,000 shares(as of November 30, 2019)(ii) Number of shares of treasury stock at end of period:
3, 420, 060 shares(as of February 28, 2020)
3, 420, 060 shares(as of November 30, 2019)(iii) Average outstanding number of shares during the period:
27,379,940 shares(the 1Q of FY2020)
27,509,367 shares(the 1Q of FY2019)*This quarterly financial summary does not need to undergo an audit.
*Disclosure and other special notes regarding performance forecasts
The forecast in this quarterly statement is 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 when using the forecasts and criteria conditioned upon theforecasts, please refer to “1. Qualitative Information for the Period under Review (2) Outlook for the next fiscalyear” on page 5.
We have also introduced “Stock Granting Trust (J-ESOP)” and “Board Incentive Plan (BIP)”. Consequently, theshares held by Trust and Custody Service Bank, ltd. and The Master Trust Bank of Japan, ltd. are included in thetreasury stock.

2

(Unaudited)Index
1. Qualitative Information for the Period under Review ......................................................................................4(1) Overview of Business Performance .............................................................................................................4(2) Forecast of Consolidated Business Results and other Forward-looking Information ..........................5
2. Quarterly Consolidated Financial Statements .................................................................................................6(1) Quarterly Consolidated Balance Sheets......................................................................................................6(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive
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[Changes in accounting statements] ...................................................................................................................10[Segment Information] .........................................................................................................................................103

(Unaudited)

1. Qualitative Information for the Period under Review(1) Overview of Business Performance
In the first quarter (From 1st December, 2019 to 29th February, 2020) of the fiscal year ended November 30th,
2020 (From 1st December, 2019 to 30th November, 2020), the Japanese economy has continued modest
recovery by improved employment rate and the income environment. However, due to the various problems
such as the prolongation of the US-China trade issues, the Brexit effects and concerns over the global
epidemic of the novel coronavirus, the global economy remains extremely uncertain.
In such circumstances, Morito Group who deals with apparel materials and consumer products has beenpushing forward with the 8th mid-term management plan and aiming for continuous business growth by creatingvalues new value for the Morito Group beyond the value-added our items, under the corporate vision of『Create Morito’s existence value, Realize“New Morito Group”』.
As a result, in the current quarterly performance reaches net sales ¥11,171 million (increased by 0.2% from ayear earlier), operating income ¥336 million (decreased by 9.2% from a year earlier), ordinary income ¥306
million (decreased by 11.8 % from a year earlier), net income ¥169 million (decreased by 19.7 % from a yearearlier).
The exchange rate used for the oversea subsidiaries’ consolidated financial statement of the current quarterend as below:
USD
EUR
RMB
HKD
TWD
VND
THB
MXN

1Q Oct-Dec
108.76 (112.91)
120.32 (128.82)
15.44 (16.32)
13.90 (14.42)
3.57 (3.66)
0.0047 (0.0048)
3.59 (3.44)
5.65 (5.70)(Notes)st1. ( ) is the exchange rate of the 1 quarter of FY2019.

Segment information as below[Japan]As for the apparel division, sales of accessories for outdoor-related products increased, but sales ofaccessories for working wear and men's heavy clothing decreased.
In the consumer product division, sales of products for one dollar shop and the safety-related accessories forconstruction site, but sales of products related to shoes and automobile interior components decreased.
As a result, net sales were ¥7,902 million (decreased by 5.4% from a year earlier).
[Asia]
As for the apparel division, sales of the accessories for Japanese apparel manufacturers in Shanghai
decreased, but EU and the US apparel manufacturers in Hong Kong were decreased.
In the consumer product division, sales of accessories for video equipment in Thailand decreased, however
sales of automobile interior component for Japanese auto makers in Shanghai increased.
As a result, net sales were ¥2,026 million (increased by 38.8% from a year earlier).
[Europe and the U.S.]
As for the apparel division, sales of the accessories in EU and the US decreased.
In the consumer product division, sales of automobile interior component for Japanese auto makers in EU andthe US increased.
As a result, net sales were ¥1,242 million (decreased by 6.9% from a year earlier).

4

(Unaudited)(2) Forecast of Consolidated Business Results and other Forward-looking Information
Currently, there has been no change in the consolidated forecast of FY2020 which was announced in 14thJanuary, 2020. The impact on business results by the novel coronavirus is unclear. It will be disclosed promptly
when it is clarified.

5

(Unaudited)

2. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets
FY 2019(As of November 30, 2019)
Thousands of yen

FY 2020(As of Februry 29, 2020)
Thousands of yen

AssetsCurrent assets
Cash and deposits

9,716,355

9,249,645

Notes and accounts receivable
Inventory

11,773,061
5,083,679

11,149,535
5,400,615

Other current assets

1,115,458

708,249

Allowance for doubtful accounts
Total current assets△30,645
27,657,908△22,930
26,485,115

Fixed assets
Tangible fixed assets
Land4,074,904

4,075,779

Other tangible fixed assets
Total tangible fixed assets
Intangible fixed assets

5,735,985
9,810,890

6,020,319
10,096,098

Goodwill
Other Intangible fixed assets

2,839,168
1,154,248

2,810,822
1,129,966

Total intangible fixed assets
Investments and other fixed assets

3,993,417

3,940,788

Investment securities

4,396,289

3,730,452

Net defined benefit asset
Other fixed assets

268,300
1,120,508

268,162
1,111,431

Allowance for doubtful account△67,253△67,259

Total investments and other fixed assets
Total fixed assets

5,717,844
19,522,152

5,042,787
19,079,674

Deferred assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable

5,601

4,551

47,185,662

45,569,341

4,859,108

4,841,007

Short-term loans payable
Current portion of bonds
Current portion of long-term debt

50,000400,000
506,666

50,000400,000
530,000

Accrued tax payable
Reserve for bonuses

441,253
229,983

168,329
211,435

71,5952,333,488
8,892,095

21,192
1,723,072
7,945,036

Reserve for director’s bonuses
Other current liabilities
Total current liabilities
Fixed liabilitiesBonds payable
Long-term debt
Provision for retirement benefit by stock
Provision for director’s retirement benefit
Provision for director's retirement benefit by stock
Provision for environmental measures
Net defined benefit liability
Other fixed liabilities
Total fixed liabilities
Total liabilities

6200,000

200,000

2,674,590
31,82457,2492,518,756
30,87561,91256,42819,360892,694

59,803
19,645
869,403

1,635,921
5,568,069

1,601,963
5,362,360

14,460,164

13,307,396

(Unaudited)

FY 2019(As of November 30, 2019)
Thousands of yen
Net Assets
Shareholders' equity
CapitalCapital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Difference in revaluation of land
Foreign currency translation adjustment
Remeasurement of defined benefit plans
Total other comprehensive income
Subscription rights to shares
Minority interests
Total net assets
Total liabilities and net assets

7

FY 2020(As of Februry 29, 2020)
Thousands of yen

3,532,492
3,503,243
26,072,687△2,222,696
30,885,726

3,532,492
3,507,603
25,879,133△2,227,056
30,692,171

1,185,435
946
451,115
170,300△25,723
1,782,074
57,697－32,725,498
47,185,662

710,407△390
451,115374,397△23,350
1,512,180
57,592－32,261,944
45,569,341

(Unaudited)(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income
The First Quarter accounting period

FY 2019
FY 2020(December 1, 2018 through (December 1, 2019 throughFebrury 28, 2019)
Februry 29, 2020)
Thousands of yen
Thousands of yen
Net sales

11,145,908

11,171,357

Cost of sales

8,073,510

8,236,318

Gross profit

3,072,398

2,935,039

Total selling, general and administrative expense
Operating Income

2,701,600
370,798

2,598,468
336,571

Non-operating income
Interest received

5,775

4,822

Dividends received
Rent on real estate

8,769
12,541

10,672
16,520Equity in earnings of affiliates
Insurance income

10,79912,994

11,556－

Other non-operating income
Total non-operating income

8,023
58,904

4,036
47,6091,772
21,317

3,688
19,74327,33731,90927,06427,472

Total non-operating expense
Ordinary Income

82,336347,365

77,969306,211Extra ordinary income
Gains on sales of fixed assets

29408－
29

105
513

2,769

1,994－
－

1,080
5,374

Non-operating expenses
Interest paid
Cash discount on sales
Foreign Exchange Loss
Others non-operating expense

Gain on reversal of subscription rights to shares
Total extra ordinary income
Extra ordinary loss
Loss on disposal of fixed assets
Loss on sales of golf club memberships
Loss on valuation of golf club membership
Loss of business restructuring

1,046

－

Total extra ordinary loss

3,815

8,448

Net income before taxes and other adjustment
Corporate, inhabitant and business taxes

343,579
161,831298,276
154,369

Adjustments to corporate and other taxes
Total income taxes△28,690
133,140△25,132
129,236

Net income
Profit(Loss) attributable to non-controlling interests

210,439－

169,039－

Profit(Loss) attributable to owners of parent

210,439

169,0398

(Unaudited)

Quarterly Consolidated Statements of Comprehensive Income
The First Quarter accounting period
FY 2019(December 1, 2018 throughNet Income
Other comprehensive income
Unrealized gain(loss) on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Adjustments to retirement benefit
Share of other comprehensive income of associates accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attribute to the parent
Comprehensive income attribute to the minority shareholders

9FY 2020(December 1, 2019 throughFebrury 28, 2019)
Thousands of yen
210,439

Februry 29, 2020)
Thousands of yen
169,039△201,542△193△219,738
6,323△475,027△1,338204,0962,372

0△415,150△204,711

1△269,894△100,854△204,711－△100,854－

(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[Changes in accounting statements]
Some overseas consolidated subsidiaries have applied IFRS 16 “Leases” from the beginning of the first quarter
consolidated accounting period. And in principle, lessees recognize all leases as assets and liabilities. Regarding
the application of this accounting standard, the method of recognizing the cumulative effect of the application ofthis standard, which is permitted as a transitional measure, on the date of initial application is adopted.
The impact of this change on the quarterly consolidated financial statements for the current first quarter
consolidated cumulative period is immaterial.
[Segment Information]
1. The First Quarter of FY 2019 (December 1, 2018 through February 28, 2019)
The information on net sales, income or loss by reportable segment
Reportable Segment

Net Sales
Sales to externalcustomers
Inter segment sales
and transfer
Total
Segment income(Thousands of yen)
Consolidated
Adjustment
Statement(Note 1)
Amount(Note 2)

JapanAsia

EU and US

Total

8,350,998

1,460,458

1,334,451

11,145,908－

11,145,908

601,546

778,117

2,514

1,382,178△1,382,178－

8,952,544
433,838

2,238,576
121,854

1,336,965△48,637

12,528,086
507,055△1,382,178△136,257

11,145,908
370,798(Notes)1. Adjustment of △136,257 thousand yen includes △86,663 thousand yen corporate expenses that are notdistributed to each reportable segment and other △49,593 thousand yen.
2. The amounts for income or losses in the reportable segments were subsequently adjusted with the amount ofoperating income on the consolidated profit and loss statement.

2. The First Quarter of FY 2020 (December 1, 2019 through February 29, 2020)
The information on net sales, income or loss by reportable segment
Reportable Segment

Net Sales
Sales to externalcustomers
Inter segment sales
and transfer
Total
Segment income(Thousands of yen)
Consolidated
Adjustment
Statement(Note 1)
Amount(Note 2)

JapanAsia

EU and US

Total

7,902,692

2,026,554

1,242,110

11,171,357－

11,171,357

362,167

682,398

12,921

1,057,487△1,057,487－

8,264,860
348,605

2,708,953
114,823

1,255,031△55,010

12,228,845
408,417△1,057,487△71,846

11,171,357
336,571(Notes)1. Adjustment of △71,846 thousand yen includes △50,788 thousand yen corporate expenses that are notdistributed to each reportable segment and other △21,057 thousand yen.
2. The amounts for income or losses in the reportable segments were subsequently adjusted with the amount ofoperating income on the consolidated profit and loss statement.

10