(Unaudited)

Oct 11, 2018
MORITO CO., LTD.
Financial Statement (Unaudited)
For the Third Quarter of the Fiscal Year ended November 30, 2018
(Translated from the Japanese original)
Corporate Information
Code：9837 Listings in First 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, Corporate management
Telephone: +81-6-6252-3551
October 12, 2018－
Yes
No
(Amounts rounded down)
1. Consolidated Financial Results for the Third Quarter of the Fiscal Year 2018(December 1, 2017 throughAugust 31, 2018)(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
3Q of FY 2018
31,900
6.0
1,135
10.2
1,170
11.8
782 △76.9
3Q of FY 201730,102
3.0
1,029
6.0
1,047
33.0
3,381
577.9
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 : 314 million yen (△93.1%)

3Q of FY 2018
3Q of FY 2017

Net income
Per shareYen
28.44
121.74(3Q of FY 2018)

4,575 million yen ( -%)(3Q of FY 2017)

Fully diluted net
Income per share
Yen
28.38
121.70(2) Consolidated Financial Position
Total assets
Millions of yen
3Q of FY 2018
46,399FY 2017
43,473

Net assets
Millions of yen
32,20432,615(Reference) Equity capital : 32,155 million yen (3Q of FY 2018)

Equity ratio
%
69.3
74.9
32,581 million yen (FY 2017)

2. DividendsFirstquarter-end
Yen

Dividends per share
SecondThird
Fiscalquarter-end
quarter-end
year-end
Yen
Yen
Yen
14.00
14.00
12.50
-

FY 2017
FY 2018
FY 2018
12.50(Forecast)(Note) Revisions of dividend forecast to the latest announcement: None

1

Annual
Yen
28.00
25.00

(Unaudited)

3. Consolidated Forecast for FY 2018 (December 1, 2017 through November 30, 2018)(Percentages represent changes from corresponding period of previous year)
Net Sales
Millions ofyen

Ordinary profit

Operating income%

Millions ofyenMillions of
yen

%

%

Net income
per share

Net income
Millions ofyenFull year
44,000
6.3
2,000
17.1
1,900
11.5
(Note) Revisions of consolidated forecast to the latest announcement: None

1,300

%
△60.7

Yen
47.27

*Notes(1) Changes of important subsidiaries during the period (changes of specific subsidiaries in accordance withchanges in the scope of consolidation) : Yes
Newly included : Maneuverline Inc.
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:

None
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 August 31, 2018)30,800,000 shares(as of November 30, 2017)(ii) Number of shares of treasury stock at end of period:
3,290,700 shares(as of August 31, 2018)
3,300,100 shares(as of November 30, 2017)(iii) Average outstanding number of shares during the period:
27,504,233 shares(the 3Q of FY2018)
27,778,878 shares(the 3Q of FY2017)*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 the forecasts, please refer to“1. Qualitative Information for the Period under Review (2) Forecast of Consolidated Business Results and Other
Forward-looking Information.” on page 5.
We have also introduced “Stock Granting Trust (J-ESOP)” and “Board Incentive Plan (BIP)”. Consequently, theshares held by Trust & 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 Informantion........................5
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..............5(4) Additional Information ...................................................................................................................................5
3. 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(Segment Information) ............................................................................................................................................. 11[Segment Information] ............................................................................................................................................. 11(Business Combinations) ........................................................................................................................................123

(Unaudited)

1. Qualitative Information for the Period under Review(1) Overview of Business Performance
In the third quarter (From 1st December, 2017 to 31st August, 2018) of the fiscal year ended November 30th,2018 (From 1st December, 2017 to 30th November, 2018), the Japanese economy has shown signs of gradual
recovery with increasing personal consumption, driven by improving employment situation due to continued
stable corporate performance.
In the global economy, despite concerns about the uncertainty of the overseas economy caused by theuncertainty of the financial markets and the impact on Japanese economy due to the increase of the US-China
trade friction, the global economy was on a recovery trend, mainly in the US.
In such a situation, our group is accelerating a growth strategy by the development of value-added Japanese
items, expansion of a global sales channel under the 7th mid-term management plan, and will promote therealization of value creation which the era seeks, expand our business in not only existing market such ASEAN,
china, western, but also in untapped market.
As a result, in the current quarterly performance reaches net sales ¥31,900 million (increased by 6.0% from ayear earlier), operating income ¥1,135 million (increased by 10.2% from a year earlier), ordinary income ¥1,170
million (increased by 11.8% from a year earlier), net income ¥782 million (decreased by 76.9% from a year
earlier).
The exchange rate used for the oversea subsidiaries’ consolidated financial statement of the current quarterend as below:
USD
EUR
RMB
HKD
TWD
VND
THB

1Q Oct-Dec
112.98 (109.43)
133.01 (117.86)
17.08 (15.99)
14.47 (14.11)
3.75 (3.45)
0.0050 (0.0048)
3.43 (3.09)

2Q Jan-Mar
108.23 (113.61)
133.15 (121.04)
17.04 (16.56)
13.83 (14.64)
3.70 (3.66)
0.0048 (0.0050)
3.43 (3.24)

3Q Apr-Jun
109.10 (111.10)
130.03 (122.26)
17.13 (16.21)
13.90 (14.27)
3.67 (3.67)
0.0048 (0.0048)
3.42 (3.24)*() is the exchange rate of the quarter of FY2017.
Segment information as below[Japan]As for the apparel division, sales of the accessories for sports apparel manufacturer was decreased, however
sales of the accessories for uniform/working wear and mass retailer were increased.
In the consumer product division, sales of accessories for health-related items such as medical supporters,
sales of products for hardware store/working wear store, retailers and automobile interior components, andrental/cleanup of kitchen supplies were increased.
Furthermore, the results of Manueverline Inc., which acquired in April, are included in the consolidated income
statement for Consolidated Financial Results of the Third Quarter of FY2018. Accordingly, Sales of businesson Maneuverline Inc. which imports and sells goods for marine leisure, snowboarding, and skateboarding wereincreased.
As a result, net sales were ¥22,662 million (increased by 9.9% from a year earlier).
[Asia]
As for the apparel division, sales of the accessories for Japanese apparel manufacturers in Shanghai wereincreased, however sales of the accessories for Europe and the US apparel manufacturers in Hong Kong weredecreased.
In the consumer product division, sales of accessories for video equipment in Hong Kong and Thailand weredecreased.
As a result, net sales were ¥4,688 million (decreased by 10.5% from a year earlier).
[Europe and the US]
As for the apparel division, sales of the accessories in Europe and the US were increased.
In the consumer product division, sales of accessories for video equipment in Europe were decreased,
4

(Unaudited)

however sales of automobile interior component for Japanese auto maker in Europe and the US wereincreased.
As a result, net sales were ¥4,550 million (increased by 7.1% from a year earlier).
(2) Forecast of Consolidated Business Results and Other Forward-looking Informantion
Currently, there has been no change in the consolidated forecast of FY2018 which was announced in 12th
January, 2018.

2. Matters Concerning Summary Information(1) Changes in Important Subsidiaries during the period under Review
In Consolidated Financial Results of the Second Quarter of the Fiscal Year 2018, as a result of acquiring ofshares of Manueverline Inc., Manueverline Inc. and its three subsidiaries are included in the scope ofConsolidated Financial Results of the Second Quarter of the Fiscal Year 2018.
Since the date of the fiscal year end of these subsidiaries and our consolidated closing date are different,
these financial results are consolidated using the financial statements based on the provisional settlement thatconsiders June 30, 2018 as the settlement date of the Third Quarter of the Fiscal Year 2018.
(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
Not applicable(4) Additional Information

Not applicable5

(Unaudited)

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets
FY 2017(As of November 30, 2017)
Thousands of yen

FY 2018(As of August 31, 2018)
Thousands of yen

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable
Inventory
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Land
Other tangible fixed assets
Total tangible fixed assets
Intangible fixed assets
Goodwill
Other Intangible fixed assets
Total intangible fixed assets
Investments and other fixed assets
Investment securities
Net defined benefit asset
Other fixed assets
Allowance for doubtful accountTotal investments and other fixed assets
Total fixed assets
Deferred assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable
Short-term loans payable
Current portion of bonds
Current portion of long-term debt
Accrued tax payable
Reserve for bonuses
Reserve for director’s bonuses
Other current liabilities
Total current liabilities
Fixed liabilities
Bonds 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

6

12,235,613
10,797,872
4,305,396
730,080△ 35,215
28,033,747

9,712,223
11,348,313
5,636,077
833,738△ 38,679
27,491,673

2,526,981
3,356,661
5,883,643

3,342,866
5,181,374
8,524,240

2,728,172
1,276,348
4,004,521

3,387,224
1,163,190
4,550,414

4,551,840
289,728
765,704△ 70,037
5,537,236
15,425,400
14,00443,473,152

4,604,472
290,132
1,003,076△ 75,115
5,822,565
18,897,220
10,853
46,399,747

4,317,325
50,000400,000
161,081
481,935
208,130
66,7991,266,606
6,951,879

4,690,265
200,000
400,000
664,756
119,412313,109
38,9801,286,839
7,713,362

1,000,000－
24,761
41,08351,552
20,217
916,630
1,851,890
3,906,135
10,858,014

800,000
2,502,671
27,22446,70866,16819,822
899,360
2,119,925
6,481,880
14,195,243

(Unaudited)
FY 2017(As of November 30, 2017)
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 2018(As of August 31, 2018)
Thousands of yen

3,532,492
3,498,724
24,713,167△ 2,122,115
29,622,267

3,532,492
3,498,724
24,751,901△ 2,118,444
29,664,672

1,577,017△ 1,203621,625
789,883△ 28,110
2,959,211
33,658－32,615,138
43,473,152

1,343,897
1,528
621,625
547,847△ 23,575
2,491,322
48,508－32,204,503
46,399,747

(Unaudited)(2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive
IncomeQuarterly Consolidated Statements of Income
The third quarter accounting period
FY 2017
FY 2018(December 1, 2016 through (December 1, 2017 throughAugust 31, 2017)
August 31, 2018)
Thousands of yen
Thousands of yen
Net sales
Cost of sales
Gross profit
Total selling, general and administrative expense
Operating Income
Non-operating income
Interest received
Dividends received
Rent on real estate
Equity in earnings of affiliates
Other non-operating income
Total non-operating income
Non-operating expenses
Interest paid
Cash discount on sales
Foreign Exchange Loss
Others non-operating expense
Total non-operating expense
Ordinary Income
Extra ordinary income
Gains on sales of fixed assets
Gains on sales of investment securities
Total extra ordinary income
Extra ordinary loss
Loss on sales of fixed assets
Loss on disposal of fixed assets
Impairment loss
Loss of business restructuring
Loss on golf membership rights
Total extra ordinary loss
Net income before taxes and other adjustment
Corporate, inhabitant and business taxes
Adjustments to corporate and other taxes
Total income taxes
Net income
Profit(Loss) attributable to non-controlling interests
Profit(Loss) attributable to owners of parent

830,102,502
22,023,035
8,079,466
7,049,481
1,029,985

31,900,857
23,411,326
8,489,531
7,354,298
1,135,233

18,39650,89337,083
33,10937,694
177,177

19,60455,09633,31942,36649,282
199,669

4,813
63,304
11,22980,131
159,478
1,047,684

3,708
62,354
24,37373,513
163,949
1,170,952

3,291,825－
3,291,825

16,387
9,405
25,793

3,075
53,48857,27018,097700
132,6314,206,878
804,400
20,706825,1073,381,770－
3,381,770

273
9,101
－
39,416－
48,791
1,147,954
454,435△ 88,812
365,623
782,331－
782,331(Unaudited)

Quarterly Consolidated Statements of Comprehensive Income
The third quarter accounting period

Net 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

9

FY 2017(December 1, 2016 throughAugust 31, 2017)
Thousands of yen
3,381,770

FY 2018(December 1, 2017 throughAugust 31, 2018)
Thousands of yen
782,331

104,433△ 5,640
1,068,243
26,543－
1,193,580
4,575,350△ 233,120
2,739△ 242,035
4,534△7△ 467,888
314,442

4,575,350－

314,442－(Unaudited)(3) Notes regarding Quarterly Consolidated Financial Statements(Notes on assumption of going concern)
Not applicable.
(Notes on a Significant Change in Shareholders’ Equity)
The Third Quarter of FY 2017 (December 1, 2016 through August 31, 2017)
1. Dividends paid
Total amount Dividend
Class of
Dividend
Decision-making bodyof dividends per share
Record date
Effective date
Sharesresource(thou. Yen)
(Yen)
Shareholders’ Meeting, Common
Retained
261,1249.00 Nov. 30, 2016 Feb. 24, 2017
held on Feb. 23, 2017
sharesearnings
Board Meeting
CommonRetained395,179
14.00 May 31, 2017
Aug. 9, 2017
held on Jul. 11, 2017
sharesearnings(note)1 The total amount of dividends resolved at the general shareholders' meeting held on February 23,
2017 includes dividends of 3,508 thousand yen for 389,800 shares owned by Trust & Custody
Service Bank, Ltd. as of the record date, and dividends of 1,557 thousand yen for 173,080 shares
owned by The Master Trust Bank of Japan, ltd. as of the record date.
2 The total amount of dividends resolved at the board meeting held on July 11, 2017 includes
dividends of 5,457 thousand yen for 389,800 shares owned by Trust & Custody Service Bank, Ltd. asof the record date, and dividends of 2,423 thousand yen for 173,080 shares owned by The Master
Trust Bank of Japan, Ltd. as of the record date.
2.

Of dividends whose record date falls within the Third quarter consolidated cumulative period, dividends
whose the effective date of the dividend will be after the end of the Third quarter consolidated accounting
periodNot applicable3.

Significant changes in shareholders’ equity
Not applicable

The Third Quarter of FY 2018 (December 1, 2017 through August 31, 2018)
1. Dividends paid
Total amount Dividend
Class of
Dividend
Decision-making bodyof dividends per share
Record date
Effective date
Sharesresource(thou. Yen)
(Yen)
Shareholders’ Meeting, Common
Retained392,843
14.00 Nov. 30, 2017 Feb. 26, 2018
held on Feb. 23, 2018
sharesearnings
Board Meeting
CommonRetained
350,753
12.50 May 31, 2018
Aug. 8, 2018
held on Jul. 11, 2018
sharesearnings(note)1 The total amount of dividends resolved at the general shareholders' meeting held on February 23,
2018 includes dividends of 5,422 thousand yen for 387,300 shares owned by Trust and Custody
Service Bank, Ltd. as of the record date, and dividends of 2,423 thousand yen for 173,080 shares
owned by The Master Trust Bank of Japan, Ltd. as of the record date.
2 The total amount of dividends resolved at the board meeting held on July 11, 2018 includes
dividends of 4,766 thousand yen for 381,300 shares owned by Trust & Custody Service Bank, Ltd. asof the record date, and dividends of 2,163 thousand yen for 173,080 shares owned by The Master
Trust Bank of Japan, Ltd. as of the record date.
2. Of dividends whose record date falls within the Third quarter consolidated cumulative period, dividends
whose the effective date of the dividend will be after the end of the Third quarter consolidated accounting
periodNot applicable
3. Significant changes in shareholders’ equity
Not applicable
10(Unaudited)(Segment Information)[Segment Information]
1. The Third Quarter of FY 2017 (December 1, 2016 through August 31, 2017)(1) 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)

Japan

Asia

EU and US

Total

20,617,370

5,235,656

4,249,475

30,102,502－

30,102,502

1,705,316

1,856,960

59,3203,621,597△3,621,597－

22,322,687
770,297

7,092,617
296,619

4,308,795
207,248

33,724,099
1,274,165△3,621,597△244,179

30,102,502
1,029,985(Notes)1. Adjustment of △244,179 thousand yen includes △234,515 thousand yen-corporate expenses that are notdistributed to each reportable segment and other △9,664 thousand yen.
2. The amounts for income or losses in the reportable segments were subsequently adjusted with the amountof operating income on the quarterly consolidated profit and loss statement.

(2) The information on net sales, income or loss by reportable segment(Significant Impairment Losses on Fixed Assets)
An impairment loss on land that was an idle asset was posted in Japan segment. The amount of theimpairment loss was 57,270 thousand yen for the third quarter consolidated cumulative period of FY2017.
2. The Third Quarter of FY 2018 (December 1, 2017 through August 31, 2018)(1) 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)

Japan

Asia

EU and US

Total

22,662,157

4,688,133

4,550,566

31,900,857－

31,900,857

1,895,887

2,474,549

40,6204,411,057△4,411,057－

24,558,044
910,809

7,162,682
318,745

4,591,187
171,878

36,311,915
1,401,432△4,411,057△266,199

31,900,857
1,135,233(Notes)1. Adjustment of △266,199 thousand yen includes △211,445 thousand yen-corporate expenses that are notdistributed to each reportable segment and other △54,753 thousand yen.
2. The amounts for income or losses in the reportable segments were subsequently adjusted with the amountof operating income on the consolidated profit and loss statement.

(2) Impairment loss on fixed assets or information on goodwill for each reporting segment(Significant changes in the amount of goodwill)
Regarding business combination resulting from acquiring Maneuverline Inc. in the second quarter
consolidated accounting period, the goodwill is also the provisionally calculated amount in the third quarter
consolidated accounting period. However, the amount of goodwill was revised by reviewing the acquisition costbased on reasonable information which is available at the latest.

11

(Unaudited)(Business Combinations)(Revised amount when the allocation amount of acquisition cost is revised)
Regarding allocation of acquisition cost for acquiring Maneuverline Inc. in the second quarter consolidated
accounting period, the provisional accounting is applied based on available reasonable information at thetime of preparation of the quarterly consolidated financial statements.
In the third quarter consolidated accounting period, the provisional accounting is continued to be applied,
however the amount of goodwill was revised as below by reviewing the acquisition cost based on reasonable
information which is available at the latest.
(Thousands of yen)

The amount of goodwill (before revision):
The amount of goodwill (after revision):

1,218,724
861,47812