Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending
November 30, 2022 [Japanese GAAP]
July 14, 2022
Morito Co., Ltd.
Stock exchange listing:Tokyo Stock Exchange
9837
URL https://www.morito.co.jp
Takaki Ichitsubo, Representative Director, CEO
Kiyomi Akui, Director, Senior Executive Officer, Division Manager
Contact:of Corporate Administrative Division and Division Manager of
Phone +81-6-6252-3551
Business Management Division
Scheduled date of filing quarterly
Scheduled date of commencing
July 15, 2022
August 9, 2022
securities report:
dividend payments:
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.)
Company name:
Code number:
Representative:

1. Consolidated Financial Results for the Second Quarter of the Fiscal Year Ending November 30, 2022
(December 1, 2021 to May 31, 2022)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net sales

Operating profit

Million yen%

2Q of FY2022
23,2072Q of FY2021
21,225(Note) Comprehensive income:2Q of FY2022%

Million yen

9.3
1,117
44.1
0.1
775
87.9
¥1,577million [ 12.7%]

Basic earnings pershare
2Q of FY2022
2Q of FY2021

Million yen

Profit attributable toowners of parent

Ordinary profit

Million yen

%

1,219
37.8
879
885
120.4
533
2Q of FY2021¥1,399million [

%

64.9
245.6
-%]

Diluted earnings per
share

Yen

Yen

32.51
19.49

-

(2) Consolidated Financial Position
Total assets

Net assets

Million yen

2Q of FY2022
FY2021(Reference) Equity:

Million yen

46,76445,938¥34,596Million yen

2Q of FY2022

Equity ratio%

34,652
33,914FY2021

74.0
73.7¥33,858Million yen

2. Dividends
Annual dividends
1st quarterend

2nd quarterend

3rd quarterend

Yen

Yen

Yen

Yen

Yen

-

17.00

26.00

-

15.50
: Yes

29.00

FY2021
9.00
FY202213.50
FY2022 (Forecast)(Note)
Revisions to the latest announcement of dividend forecast

Year-endTotal

3. Consolidated Financial Results Forecast for the Fiscal Year Ending November 30, 2022 (December 1,
2021 to November 30, 2022)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Operating profit
Ordinary profit
owners of parent
per share

Net sales

Million yen%

Million yen

Full year
46,000
5.4
2,000
23.5
2,100
(Note) Revisions to the latest announcement of performance forecast

Million yen%

Million yen

%

14.5

1,550

- 1 -

%

10.1
:
Yes

Yen

57.78

* 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 of the period (including treasury shares):May 31, 2022: 30,800,000 shares
FY2021 30,800,000 shares2) Total number of treasury shares at the end of the period:
May 31, 2022: 3,974,500 shares
FY2021 3,510,000 shares
3) Average number of shares during the period:
May 31, 2022: 27,064,114 shares
2Q of the fiscal year ended November 30, 2021: 27,381,454 shares*

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, 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. 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) ............................................................................................................................. 13(Additional Information) ............................................................................................................................................ 14(Segment Information, Etc.) ..................................................................................................................................... 15

- 3 -

1.

Qualitative Information for the Period under Review(1) Overview of Business Results for the Period under Review
The operating environment during the first six months of the fiscal year ending November 30, 2022 (December 1, 2021
to May 31, 2022) saw signs of recovery in economic activity in Japan following Europe and the United States. However,a combination of various risks, such as the lockdown in Shanghai, China, due to the spread of COVID-19, soaring raw
material costs associated with rising crude oil prices triggered by the situation in Ukraine and other factors, as well as
currency fluctuations, has made the outlook for the future more uncertain than ever.
The Morito Group (the “Group”), which is mainly engaged in apparel-, product-, and transportation-related businesses,
faced a number 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 business related to medical wear andworking wear, which are unaffected by trends, remained firm. The Group focused on winning new business contracts
as well as the development and sales of high-value-added products, such as accessories and products with superior
functionality, including yoga, fishing, and other sporting goods, medical device-related products, as well as
environmentally friendly accessories and products, which are being promoted across the Group. The Group also madeongoing efforts to cut transportation and other costs, and this substantially improved its profitability.
As a result, for the first six months of the fiscal year under review, net sales increased 9.3% year on year to ¥23,207
million. Operating profit was up 44.1% to ¥1,117 million, ordinary profit grew 37.8% to ¥1,219 million, and profit
attributable to owners of the parent increased 64.9% to ¥879 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 first quarter of the fiscal year under review. This change resulted in a decreaseof ¥260 million in net sales, ¥34 million in operating profit, and ¥10 million in ordinary profit and profit attributable toowners of the parent respectively for the first six months of 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 first six months of the fiscal year under review are as follows.
1Q

2Q

USD

113.71(104.51)116.34(106.09)EUR

130.04(124.58)130.40(127.80)

CNY

17.78

(15.81)

18.31(16.38)

HKD

14.60

(13.48)14.90(13.68)TWD

4.09(3.67)

4.16(3.78)

VND

0.0050(0.0045)0.0051(0.0046)

THB

3.41

(3.42)

3.52(3.50)

MXN

5.48(5.08)

5.67(5.21)(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 casual wear and sportswear accessories.
The Product Division enjoyed increases in sales of medical device-related products, products for one-coin shops (like100-yen stores), construction safety products, and products related to snowboarding and surfing.
In the Transportation Division, sales of automotive interior components to Japanese automotive manufacturers
increased.
As a result, net sales grew 10.0% year on year to total ¥16,108 million, and segment profit grew 29.0% year on year
to reach ¥864 million.
Due to the adoption of the Accounting Standard for Revenue Recognition, etc., net sales and segment profit fell ¥260
million and ¥34 million respectively.
Asia
In China and Hong Kong apparel operations, sales of working wear accessories for the European and U.S. markets
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 grew 0.5% year on year to total ¥4,097 million, and segment profit jumped 112.5% year on year
to reach ¥314 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 19.7% year on year to total ¥3,000 million, and segment profit was up 72.2% year on year
to reach ¥85 million.

(2) Forecast of Consolidated Business Results and other Forward-looking Information
In the consolidated financial forecast for the fiscal year ending November 30, 2022, figures are expected to be higher
than initially announced.
For more information, see "Notice Concerning Revision of Consolidated Financial Forecast for the Fiscal Year Ending
November 30, 2022 and Revision of Year-end Dividend Forecast (Dividend Increase)" announced today (July 14, 2022).

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

As of May 31, 2022

AssetsCurrent assets
Cash and deposits

11,103,207

10,093,903

10,649,689
4,540,605

10,960,903
5,713,684

707,446(43,235)

899,526(48,375)

26,957,713

27,619,641

Land
Other, net

4,594,174
5,282,796

4,534,989
5,511,809

Total property, plant and equipment

9,876,970

10,046,799

Goodwill
Other

2,432,266
1,037,483

2,484,182
1,109,092

Total intangible assets

3,469,750

3,593,275

Investments and other assets
Investment securities

4,485,900

4,249,734

Retirement benefit asset
Other

241,832
1,014,733

239,660
1,151,205

Allowance for doubtful accounts(108,676)(136,228)

Notes and accounts receivable - trade
Inventory
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Intangible assets

Total investments and other assets
Total non-current assets
Total assets

5,633,790

5,504,371

18,980,511

19,144,446

45,938,224

46,764,088

Liabilities
Current liabilities
Notes and accounts payable - trade

4,453,854

4,614,012

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)
Other483,951
286,425

634,804
282,640

86,06563,792

1,752,857

1,910,106

Total current liabilities

7,507,774

7,835,366

Non-current liabilities
Long-term borrowings

1,703,302

1,563,298

32,27439,02232,15836,40891,65092,36920,075
911,731

21,951881,890

Other

1,724,387

1,641,645

Total non-current liabilities

4,515,579

4,276,585

12,023,354

12,111,951

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
Retirement benefit liability

Total liabilities- 6 -(Thousand yen)
As of November 30, 2021

As of May 31, 2022

Net assets
Shareholders’ equity
Share capital
Capital surplus

3,532,492
3,507,603

3,532,492
3,507,603

Retained earnings
Treasury shares

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

27,114,320(2,628,578)

Total shareholders’ equity

31,477,001

31,525,837

1,321,667

1,128,481

4,612
451,115(5,204)442,187

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

641,116(36,922)

1,535,189(30,110)

2,381,589

3,070,543

56,280-55,755-

Total net assets

33,914,870

34,652,136

45,938,224

46,764,088

Total liabilities and net assets- 7 -(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
The first six-month period(Thousand yen)
December 1, 2020 –May 31, 2021

December 1, 2021 –May 31, 2022

Net sales

21,225,009

23,207,081

Cost of sales

15,733,368

17,093,342

Gross profit

5,491,641

6,113,739

Selling, general and administrative expenses

4,715,777

4,995,766

775,864

1,117,973

4,861

5,158

Dividend income
Rental income from real estate
Share of profit of entities accounted for using
equity method
Subsidies for employment adjustment

36,832
32,84930,56938,524

22,66547,41857,914

3,413

Subsidy income
Other

12,35016,77618,082
12,192

Total non-operating profit

184,251

155,361

5,419

5,649

Sales discounts
Foreign exchange losses

29,103
1,052

594

Other

39,32847,213

Total non-operating expenses

74,90453,458885,211

1,219,876-

123,161

52
420

525

Operating profit
Non-operating profit
Interest income

Non-operating expenses
Interest 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-

70,016

Total extraordinary income

472

193,703

Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Restructuring loss
Complaint settlement
Total extraordinary losses

29

569

279
17,063648--

48,64817,37149,866

Profit before income taxes

868,311

1,363,712

Income taxes - current
Income taxes - deferred

414,187(79,561)

590,479(106,710)

Total income taxes

334,626

483,768

Profit533,685879,944--533,685879,944

Profit attributable to non-controlling interests
Profit attributable to owners of parent- 8 -Quarterly Consolidated Statements of Comprehensive Income
The first six-month period(Thousand yen)
December 1, 2020 –May 31, 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

December 1, 2021 –May 31, 2022

533,685879,944412,767(193,185)(38)(9,819)440,841

894,073

12,483

6,812

1

1

866,053

697,882

Comprehensive income

1,399,739

1,577,826

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

1,399,739

1,577,826

-

-

- 9 -

(3) Consolidated Statements of Cash Flows(Thousand yen)
December 1, 2020 –May 31, 2021

December 1, 2021 –May 31, 2022

Cash flows from operating activities
Profit before income taxes
Depreciation

868,311464,810

1,363,712
503,354

Amortization of goodwill
Increase (decrease) in provision for bonuses

117,167(27,705)

123,620(10,650)

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-based
remuneration
Increase (decrease) in provision for share-based
remuneration for directors (and other officers)
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend income
Interest expenses

7,175
16,96822,688(4,554)

3,800

4,250

(2,518)

6,747

5,797

719

(2,059)24,610(41,693)5,419(35,728)
5,649

Subsidies for employment adjustment
Subsidy income
Share of loss (profit) of entities accounted forusing equity method
Gain on reversal of share acquisition rights(57,914)(12,350)(3,413)(18,082)(22,665)(47,418)

(420)

(525)

Loss (gain) on sales of non-current assets
Loss (gain) on sales of investment securities

29
(52)

(122,591)-

Loss on retirement of non-current assets
Decrease (increase) in trade receivables

279(42,864)648(32,248)

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

310,584(157,823)(939,221)(42,783)

42,724(257,214)

1,475,000

541,569

Other
SubtotalInterest and dividends received

41,67635,728Interest paid
Subsidies for employment adjustment received(5,530)38,900(5,689)17,70812,350(73,026)

18,082(445,699)

1,489,370

161,699-(82,325)

Proceeds from withdrawal of time deposits
Purchase of investment securities

4,798(19,456)

87,123(11,321)

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

1,402(680,577)(352,858)

449

211,863(48,108)(55,454)

Proceeds from collection of loans receivable
Other

3,600
(991)

3,000
(4,035)(738,885)(204,009)

Subsidies received
Income taxes paid
Net cash provided by (used in) operating
activities
Cash flows from investing activities
Payments into time deposits

Cash flows from investing activities- 10 -

(Thousand yen)
December 1, 2020 –May 31, 2021
Cash flows from financing activities
Repayments of lease obligations
Repayments of long-term borrowings
Redemption of bonds

December 1, 2021 –May 31, 2022

(98,951)(110,744)(265,000)(200,000)(254,616)-(132,676)(349,117)(473,272)(696,627)(1,187,750)

108,574

215,028

Purchase of treasury shares
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

162,432(1,015,031)

10,052,070

11,020,111

Cash and cash equivalents at end of period

10,214,503

10,005,079- 11 -

(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.

- 12 -

(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 first quarter of the fiscal year under review. The Group now recognizes
revenue when control of promised goods or services is transferred to customers in an amount that reflects theconsideration 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 Grouppreviously 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 amountequivalent to the ending inventory of the supplied goods remaining with subcontractors in "other" under "current
liabilities" as a liability related to chargeable subcontracting.

- 13 -

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 first quarter of the fiscal year under review is added to or
deducted from retained earnings at the beginning of the first quarter of the fiscal year under review, and the new
accounting policy has been applied starting with the 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 to contracts for which almost all revenue amounts were recognizedusing the previous treatment prior to the beginning of the first quarter of the fiscal year under review. In addition, theGroup has applied the method set forth in (1) of the second part of paragraph 86 of the Accounting Standard for
Revenue Recognition to account for contract changes made prior to the beginning of the first quarter of the fiscal
year under review based on the contract terms after reflecting all contract changes. The cumulative effect of suchchanges has been added to or deducted from retained earnings at the beginning of the first quarter of the fiscal year
under review.
As a result, net sales decreased ¥260,081 thousand, cost of sales by ¥169,270 thousand, selling, general andadministrative expenses by ¥56,007 thousand, operating profit by ¥34,804 thousand, and ordinary profit and profit
before income taxes by ¥10,019 thousand yen respectively in the first six months of the fiscal year under review. The
beginning balance of retained earnings decreased ¥27,800 thousand.
In accordance with the transitional treatment set forth in paragraph 28-15 of the Accounting Standard for Quarterly
Financial Reporting (ASBJ Statement No. 12, March 31, 2020), information on disaggregated revenue from contracts
with customers for the first six months of the previous fiscal year is not provided.
(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 first quarter of the fiscal year under review. In accordance with the transitional
treatment set forth in paragraph 19 of the Accounting Standard for Fair Value Measurement and paragraph 44-2 ofthe Accounting Standard 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 for the first six months of the fiscal year under review.
(Additional Information)(Impact of COVID-19 pandemic on accounting estimates)
The assumptions used in the accounting estimates for the impact of COVID-19 have not changed from thosedescribed in the additional information section of the financial results for the previous fiscal year.

- 14 -

(Segment Information, Etc.)
Segment informationI

For the second quarter of the fiscal year ended November 30, 2021

1. Information on amounts of net sales and profit (loss) by reportable segment(Thousand yen)
Reportable Segment
Japan

Asia

Net sales to external customers

14,638,044

4,079,188

Intersegment sales or transfers

860,556

1,078,157

Total

15,498,601

5,157,345

670,258

147,977

Europe & the
U.S.

Total

Amount recorded
Adjustment in Consolidated
Financial(Note 1)
Statements(Note 2)

Net sales

Segment profit(Note) 1
2

2,507,776 21,225,009-

21,225,009

1,964,182(1,964,182)-

2,533,244 23,189,192(1,964,182)

21,225,009(91,988)775,864

25,46849,616

867,853

The adjustment of ¥(91,988) thousand to segment profit includes corporate expenses of ¥(99,599) thousand
not allocated to the reportable segments, and other in the amount of ¥7,610 thousand.
The amount of segment profit has been adjusted with operating profit in the Quarterly Consolidated
Statements of Income.

II For the second quarter of the fiscal year ending November 30, 2022
1. Information on amounts of net sales and profit (loss) by reportable segment and disaggregated revenue(Thousand yen)Amount recorded

Reportable Segment
Japan

Asia

Europe & the
U.S.

Total

Adjustment in Consolidated
Financial(Note 1)
Statements(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

1,117,973

Segment profit(Note) 1
2(146,669)

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

2. Change of reportable segments
As described in "Changes in Accounting Policies," the Group has applied the Accounting Standard for Revenue
Recognition, etc., from the beginning of the first quarter 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, net sales and segment profit for Japan for the first six months of the fiscal year under review
are respectively ¥260,081 thousand and ¥34,804 thousand less than what they would be when calculated using theprevious method.

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