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

Consolidated Financial Results for the Six Months of the Fiscal Year Ending
November 30, 2024 [Japanese GAAP]
July 12, 2024
Company name: MORITO CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number:
9837
URL: https://www.morito.co.jp
Representative: Takaki Ichitsubo, Representative Director, CEO
Kiyomi Akui, Director, Senior Executive Officer, Division Manager ofContact:(Phone) +81-6-6252-3551
Corporate Administrative Division
Scheduled date of filing
Scheduled date of commencing
July 16, 2024
August 8, 2024
dividend payments:
quarterly securities report:
Availability of supplementary briefing material on quarterly financial results: Available
Schedule of quarterly financial results briefing session: Yes (for securities analysts and institutional investors)(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months of the Fiscal Year Ending November 30, 2024
(December 1, 2023 to May 31, 2024)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen

Six months ended
May 31, 2024
Six months ended
May 31, 2023
(Note) Comprehensive income:% Millions of yen% Millions of yen% Millions of yen%

23,749

(1.7)

1,483

13.7

1,565

7.3

1,393

6.5

24,148

4.1

1,305

16.8

1,459

19.6

1,308

48.7

Six months ended
Six months ended
2,121 million yen[ 171.6%]
781 million yen[ (50.5)%]
May 31, 2024
May 31, 2023

Basic earnings per
share
Six months ended
May 31, 2024
Six months ended
May 31, 2023

Diluted earnings per
share

Yen

Yen

52.42

-

48.93

48.85

(2) Consolidated Financial Position
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

51,832

39,62676.4

51,42938,45774.7

Six months ended
May 31, 2024
FY2023Six months ended(Reference) Equity:
May 31, 2024

39,626 million yen

FY202338,433 million yen

2. Dividends
1st quarterend

2nd quarterend

Yen

Yen

Annual dividends
3rd quarterYear-end
end

FY202327.00
FY202429.00
FY2024(Forecast)(Note) Revision to the latest announcement of dividend forecast

Total

Yen

Yen

Yen

-

28.00

55.00

29.00

58.00

:

None

3. Consolidated Financial Results Forecast for the Fiscal Year Ending November 30, 2024
(December 1, 2023 to November 30, 2024)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Millions of yen% Millions of yen% Millions of yen% Millions of yen

Full year
51,000
5.1
2,600
5.5
2,800
1.0
(Note) Revision to the latest announcement of performance forecast
:
None

― 1 ―

2,300

%

Yen

3.7

86.48

Notes:(1) Changes in significant subsidiaries during the period under review (changes in
specified subsidiaries resulting in changes in the scope of consolidation)(2) Adoption of special accounting treatment for preparing quarterly consolidated
financial statements

:

No

:

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:

No2) Changes in accounting policies other than 1) above:

No3) Changes in accounting estimates:No4) Retrospective restatement:

No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end
May 31, 2024:of the period (including treasury shares):2) Total number of treasury shares at the
May 31, 2024:
end of the period:3) Average number of shares during the
For the six months ofperiod:the fiscal year ending
November 30, 2024:

30,000,000

November 30, 2023:

30,000,000

3,459,814

November 30, 2023:

3,404,514

For the six months of
26,579,700 the fiscal year ended
November 30, 2023:

26,746,214*

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

13

― 3 ―

1. Qualitative Information for the Period under Review(1) Overview of Business Results for the Period under Review
For the six months of the fiscal year ending November 30, 2024 (December 1, 2023 to May 31, 2024) saw economic
activity steadily return to normal as various restrictions due to the COVID-19 pandemic were lifted. However,
economic growth remained at a moderate pace as the post-pandemic surge in demand subsided. Furthermore, theoutlook for the future remains uncertain due to geopolitical risks such as the prolonged situation in Ukraine and risingtensions in the Middle East, as well as soaring raw material and energy prices, global monetary tightening, andexchange rate fluctuations. Working against this backdrop, the Morito Group (the "Group"), which is mainly engaged
in the apparel, product, and transportation businesses, faced an uphill battle. This was due to stagnant demandcaused by production cutbacks by apparel manufacturers due to a warm winter in Japan and the end of the
post-pandemic surge in demand, as well as production stoppages by some automakers. Otherwise, the Group
enjoyed favorable sales of locally produced and procured accessories in Asia while the performance of its kitchen
appliance and related service business remained upbeat. Under its "Rideeco®" initiative aimed at realizing asustainable society, the Group moved forward with the development and sales of environmentally friendly products,
using discarded fishing nets and fabric scraps from garment factories, with a focus on winning new business
contracts. In addition, continued efforts to streamline unprofitable businesses resulted in an improved gross profit
ratio.
As a result, for the six months of the fiscal year under review, net sales decreased 1.7% year on year to 23,749
million yen. Operating profit was up 13.7% to 1,483 million yen, ordinary profit grew 7.3% to 1,565 million yen, andprofit attributable to owners of the parent increased 6.5% to 1,393 million yen.

Exchange rates used for the conversion of revenue and expenses of the Group's overseas subsidiaries during the
preparation of consolidated financial statements for the six months of the fiscal year under review are as follows.
1Q

2Q

USD

147.86(141.39)148.62(132.43)

EUR

159.05(144.26)

161.32(142.17)

CNY

20.44

(19.85)

20.63(19.35)

HKD

18.92

(18.07)19.00(16.89)VND

0.0061(0.0058)

0.0060(0.0056)

THB

4.15

(3.89)

4.17(3.91)

MXN

8.43(7.19)

8.75(7.11)(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 medical wear accessories for the European and U.S. markets, as well
as sales of bag accessories and accessories for high-end outdoor brands, while sales of accessories for workwear
and casual wear decreased.
The Product Division enjoyed higher sales of products for one-coin shops (like 100-yen stores) and stationery-related
products as well as higher revenues for the kitchen appliance rental, sales, and cleaning business, while sales of
construction safety products and medical device- and snowboard-related products decreased.
In the Transportation Division, sales of automotive interior components to Japanese automotive manufacturers fell.
As a result, net sales decreased 6.0% year on year to total 16,285 million yen, and segment profit jumped 0.3% year
on year to reach 1,115 million yen.

Asia
The Apparel Division enjoyed growing sales of casual wear accessories in China and Hong Kong as well as athleticshoe accessories and workwear-related products in Vietnam although sales of workwear accessories declined in
China and Hong Kong.
In the Transportation Division, sales of automotive interior components to Japanese automotive manufacturers
increased in China.
As a result, net sales increased 13.1% year on year to total 4,054 million yen while segment profit rose 22.6% year
on year to total 459 million yen.

Europe and the U.S.
In the Apparel Division, sales of casual wear accessories decreased in the U.S. while sales of medical wear
accessories increased.
In the Transportation Division, sales of automotive interior components to Japanese automotive manufacturers
increased.
As a result, net sales grew 5.3% year on year to total 3,409 million yen while segment profit came to 37 million yen(segment loss for the same period in the previous fiscal year was 31 million yen).

(2) Forecast of Consolidated Business Results and Other Forward-Looking Information
The consolidated financial forecast for the fiscal year ending November 30, 2024, remains unchanged from what wasannounced on January 12, 2024.

― 5 ―2. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
As of November 30, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for share awards
Provision for retirement benefits for directors (andother officers)
Provision for share awards for directors (and otherofficers)
Provision for environmental measures
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities― 6 ―As of May 31, 2024

13,013,252
8,623,474
2,440,431
6,358,412
827,277(113,686)
31,149,163

14,576,245
7,903,320
2,097,745
5,782,818
765,990(43,162)31,082,957

4,660,948
5,382,924
10,043,872

4,661,949
5,334,470
9,996,420

2,495,204
1,067,076
3,562,280

2,374,015
1,005,837
3,379,853

5,422,020
314,646
1,005,054(67,688)6,674,033
20,280,186
51,429,350

6,152,875
322,227
1,027,529(128,980)
7,373,652
20,749,926
51,832,884

3,658,697
1,082,704
50,000256,674
611,892
473,097

3,298,278
1,062,753
50,000280,008
720,942
382,799

146,836

69,3132,309,311
8,589,213

1,892,141
7,756,236

1,166,620
48,176

1,003,282
62,72754,20860,975

100,494

106,507

26,823
864,593
2,121,999
4,382,915
12,972,128

27,150867,366
2,322,636
4,450,645
12,206,882

(Thousands of yen)
As of November 30, 2023
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets― 7 ―As of May 31, 2024

3,532,492
3,040,197
28,538,155(2,437,142)
32,673,702

3,532,492
3,075,137
29,172,008(2,641,996)
33,137,641

2,053,469
13,287419,773
3,223,586
49,9345,760,051
23,46738,457,221

2,636,025
23,779419,773
3,368,059
40,721
6,488,360
39,626,001

51,429,350

51,832,884

(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statements of Income
The six-month period
For the six months
ended May 31, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Gain on redemption of investment securities
Rental income from real estate
Foreign exchange gains
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Loss on derivatives
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on reversal of share acquisition rights
Gain on liquidation of subsidiaries
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Loss on valuation of golf club membership
Loss on termination of employment
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent― 8 ―(Thousands of yen)
For the six months
ended May 31, 2024

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

23,749,540
16,815,883
6,933,656
5,449,742
1,483,913

8,530
34,095
17,95936,89728,851

9,297
39,832
18,842
27,09230,896

8,205

67,233

8,269

224,464

111,540

4,619
37,43528,776
70,831
1,459,081

7,953
10,65011,142
29,746
1,565,707

10,650195,868787
130,102337,409100
515,464
4,252
519,817

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

1,842
3,227
13,952
19,022
2,066,501
733,401(60,191)
673,210
1,393,291
1,393,291

Quarterly Consolidated Statements of Comprehensive Income
The six-month period(Thousands of yen)
For the six months
ended May 31, 2024

For the six months
ended May 31, 2023
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests― 9 ―1,308,566

1,393,291

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

582,555
10,495
144,473(9,212)0(2)(527,398)
781,168

728,308
2,121,600

781,168

2,121,600--

(3) Quarterly Consolidated Statements of Cash Flows
For the six months
ended May 31, 2023
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in provision for bonuses
Decrease (increase) in retirement benefit asset
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for retirement benefits
for directors (and other officers)
Increase (decrease) in provision for share awards
Increase (decrease) in provision for share awards for
directors (and other officers)
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Gain on reversal of share acquisition rights
Loss (gain) on sale of non-current assets
Loss (gain) on sale of investment securities
Loss (gain) on redemption of investment securities
Loss (gain) on liquidation of subsidiaries
Loss on valuation of golf club membership
Loss on retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Proceeds from withdrawal of time deposits
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from redemption of investment securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Proceeds from collection of loans receivable
Purchase of membership
Other, net
Net cash provided by (used in) investing activities― 10 ―(Thousands of yen)
For the six months
ended May 31, 2024

1,790,953
480,709138,140(42,716)(11,096)(1,309)2,066,501
503,813
145,657(90,666)(17,086)
(999)

400

6,767

14,227

14,551

6,012

6,012

(12,394)(42,625)
4,619(10,673)(49,130)
7,953(30,896)(8,205)(787)(4,252)(10,650)(195,868)(17,959)(130,102)
1,690
3,845
722,377
212,824(1,276,533)
51,3891,654,250
42,625(4,756)(531,611)
1,160,507

1,742(515,464)
3,227
1,061,301
634,410(415,961)(430,751)
2,908,746
49,147(7,963)(648,810)
2,301,120

4,798(6,726)
221,831
59,252(147,339)
12,617(26,231)3,000(2,736)(6,124)112,341

4,798(6,879)618,824(222,054)
250(4,448)42,000(2,919)429,570

For the six months
ended May 31, 2023
Cash flows from financing activities
Repayments of lease liabilities
Repayments of long-term borrowings
Purchase of treasury shares
Proceeds from exercise of employee share options
Dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period― 11 ―(Thousands of yen)
For the six months
ended May 31, 2024

(111,791)(140,004)(136,725)
183,053(503,789)(709,255)(130,515)(140,004)(346,086)
156,958(759,439)(1,219,086)(199,838)

51,303363,754
10,396,188
10,759,943

1,562,907
13,009,580
14,572,488

(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 ―

(Segment Information, Etc.)
Segment informationI

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

5,859,661

2,826,265

2,545,273

11,231,200-

11,231,200

Product

9,023,921

278,108

11,937

9,313,968-

9,313,968

Transportation

2,444,653

479,295

679,777

3,603,726-

3,603,726

Revenue from contracts withcustomers

17,328,236

3,583,670

3,236,988

24,148,895-

24,148,895

Net sales to external customers

17,328,236

3,583,670

3,236,988

24,148,895-

24,148,895

Intersegment sales or transfers

930,569

2,225,763

48,606

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

-

Total

18,258,806

5,809,433

3,285,595

27,353,835(3,204,939) 24,148,895

Segment profit (loss)

1,112,497

374,570(31,612)

1,455,456(150,008)

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

II

For the six months of the fiscal year ending November 30, 2024
Information on amounts of net sales and profit by reportable segment and disaggregated revenue
Reportable Segment

Japan

Asia

Europe &the U.S.

Total(Thousands of yen)Amountrecorded in
Adjustment Consolidated
Financial(Note 1)
Statements(Note 2)

Net sales
Apparel

5,680,237

3,181,017

2,585,271

11,446,526-

11,446,526

Product

8,314,001

328,839

21,576

8,664,418-

8,664,418

Transportation

2,291,483

544,604

802,5073,638,595-

3,638,595

Revenue from contracts withcustomers

16,285,722

4,054,461

3,409,355

23,749,540-

23,749,540

Net sales to external customers

16,285,722

4,054,461

3,409,355

23,749,540-

23,749,540

Intersegment sales or transfers

926,141

1,710,437

35,5982,672,178(2,672,178)

-

Total

17,211,864

5,764,899

3,444,954

26,421,718(2,672,178) 23,749,540

1,115,885

459,340

37,2381,612,464

Segment profit(128,551)

1,483,913(Note) 1 The adjustment of (128,551) thousand yen to segment profit includes corporate expenses of (123,985) thousand
yen not allocated to the reportable segments, and other in the amount of (4,566) thousand yen.
2 The amount of segment profit has been adjusted with operating profit in the Quarterly Consolidated Statementsof Income.

― 13 ―