Slide 1: Company Presentation Materials for Investors
MORITO CO., LTD. Company Presentation Materials for Investors Where innovation is the norm Prime Market of TSE: 9837 May 2024 © 2024 MORITO CO.,LTD.
Slide 2: Contents
CONTENTS ■ Company Profile .................... p. 02 ■ Business & Products .................... p. 06 ■ Morito’s Strengths .................... p. 12 ■ Financial Summary .................... p. 21 ■ Overview of the 8th Mid-term .................... p. 25 Management Plan p. 37 ■ Shareholder Returns
Slide 3: Company Profile
Company Profile Where innovation is the norm © 2024 MORITO CO.,LTD. 02
Slide 4: Company Profile
Company Profile MORITO CO., LTD. (Prime Market of TSE: 9837) Where innovation is the norm Founded in 1908 in Osaka Stable performance, keeping in the Global development of small parts black even during economic shocks indispensable to daily life Numerous top market shares in Japan Sales networks in
Slide 5: Morito's Role
Morito’s Role A trading company with manufacturing functions based on the concept of “Connect, Fasten, Decorate.” We are involved in the planning and development, manufacturing, procurement, sales, and customer production follow-up of various parts across all industries, including clothing, bags, sh
Slide 6: Morito by the Numbers
Morito by the Numbers <FY2023> <Shareholder Returns> Net sales 48,500 million JPY DOE target 4.0% Operating profit 2,400 million JPY Payout ratio of 50% or more Net income 2,200 million JPY Forecasted dividend yield of 3.8% *The forecasted dividend yield is calculated based on the closing price in A
Slide 7: Business & Products
Business & Products Where innovation is the norm © 2024 MORITO CO.,LTD. 06
Slide 8: Apparel Business
Apparel Business We sell numerous products for famous apparel brands around the world. One of the most famous apparel brands in Japan uses almost 100% Morito snap fasteners. Stoppers Top class market share in Japan BLOCK TAPEY Plastic snap fasteners Hook and bars Jeans buttons/rivets Snap/fastener b
Slide 9: Apparel Business Workwear/Sports
Apparel Business Workwear/Sports High value-added products, such as those with superior functionality and safety, are our strength. → In addition to the fashion industry, we also have numerous products for the workwear, medical wear, sports, and outdoor industries, with stable demand that is unaffec
Slide 10: Transportation Business
Transportation Business Starting with the use of eyelets in car mats, the Company handles automotive interior components primarily for domestic automakers. As we handle interior components, demand is expected to continue even after the shift to EVs. Armrests Gear shift boot Top class Center armrests
Slide 11: Transportation Business Shinkansen
Transportation Business Shinkansen The net pockets found in front of seats on Shinkansen trains are also a product of the Morito Group. This is a stress-free product made using a special knotless manufacturing process that allows items to be smoothly placed in or taken out of the pockets. (Enlarged)
Slide 12: Product Business
Product Business Recognized for our functionality, durability, and planning capabilities, we sell parts to school bag manufacturers and have in-house brands for shoe care products, supporters, and waterproof material bags. We also deal in the import and sales of products related to surfing, skateboa
Slide 13: Morito's Strengths
Morito’s Strengths W here innovation is the norm © 2024 MORITO CO.,LTD. 12
Slide 14: Morito's Strengths
Morito’s Strengths Lines of business for daily necessities, which are unaffected by trends Stable performance with a diversified portfolio Global manufacturing, procurement, and sales capabilities Enjoying high market share for various products targeting niche areas Global niche top company Where in
Slide 15: Lines of business for daily necessities, which are unaffected by trends
Lines of business for daily necessities, which are unaffected by trends Since we deal in parts for things that are vital to people’s daily lives, many of our businesses are essentially immune to trends or economic downturns and can continue to operate as usual. Products for government and other publ
Slide 16: Stable performance with a diversified portfolio
Stable performance with a diversified portfolio A diversified portfolio with three businesses and products for a wide range of industries 1 →The Company’s own performance is not dependent on the performance of specific businesses or products Transportation Business Trends in Net Sales by Business Se
Slide 17: Stable performance with a diversified portfolio
Stable performance with a diversified portfolio Expanding business worldwide and handling both importing and exporting 2 → Hedging against exchange rates and geopolitical risks Net Sales by Region Ratio of Imports to Exports Europe & the U.S. Imports : Exports 14% Asia 16% Japan 70% = Approx. 6 : 4
Slide 18: Global manufacturing, procurement, and sales capabilities
Global manufacturing, procurement, and sales capabilities Manufacturing, procurement, and sales networks spread across the world. We also have partner plants and distributors all over the world, giving us close proximity to our customers and the ability to respond to their every need. Group location
Slide 19: Enjoying high market share for various products targeting niche areas
Enjoying high market share for various products targeting niche areas We have captured a share of the market for parts that are niche yet indispensable to daily life both in Japan and internationally. Metal snap fasteners No. 2 Designated supplier for national brands for baby clothes worldwide No. 1
Slide 20: Why the High Market Share?
Why the High Market Share? We have established a support system from the development and selection of parts that 1 meet customer needs up to the completion of products, and consistently ensure stable quality control on a global scale (1) Listening to customer needs (2) Product proposal or developmen
Slide 21: Why the High Market Share?
Why the High Market Share? We provide safe and reliable products that cover the quality standards of countries 2 around the world We provide high-quality products that meet the various quality standards that differ depending on region, such as Asia and Europe. We have gained market share in industri
Slide 22: Financial Summary
Financial Summary W here innovation is the norm © 2024 MORITO CO.,LTD. 21
Slide 23: FY2023 Summary of Financial Results
FY2023 Summary of Financial Results (Million JPY) FY2023 FY2024 Increase/Decrease Y/Y Net sales 48,478 48,529 +51 +0.1% Gross profit 12,487 13,265 +778 +6.2% Gross profit ratio 25.8% 27.3% Cost 10,370 10,801 +431 +4.2% Cost ratio 21.4% 22.3% Operating profit 2,116 2,464 +348 +16.4% Operating profit
Slide 24: Ten-Year Trends in Net Sales and Operating Profit
Ten-Year Trends in Net Sales and Operating Profit (Consolidated) In FY2023, sales reached a record high. In FY2024, we aim to achieve 51,000 million yen in net sales and 2,600 million yen in operating profit, both record highs. (Million JPY) Net sales Operating profit 3,000 51,000 50,000 48,478 48,5
Slide 25: FY2023 Consolidated Balance Sheet
FY2023 Consolidated Balance Sheet Equity ratio 74.7% Sound financial condition (Million JPY) 2022 4Q 2023 4Q 2022 4Q 2023 4Q Assets Liabilities Current liabilities 9,309 8,589 (-720) Fixed liabilities 4,278 4,382 Current assets 30,481 31,149 (+104) (+668) 12,972 Total liabilities 13,587 (-615) Net a
Slide 26: Overview of the 8th Mid-term Management Plan
Overview of the 8th Mid-term Management Plan W here innovation is the norm © 2024 MORITO CO.,LTD. 25
Slide 27: Morito's Vision
Medium- and Long-term Policy Morito’s Vision Become a global niche top company that keeps making a big difference in the world with small parts Where innovation is the norm © 2024 MORITO CO.,LTD. 26
Slide 28: Efforts Over the Past Years (FY2019 – FY2023)
Efforts Over the Past 5 Years (FY2019 – FY2023) Through efforts such as corporate splits centered on structural reforms, we have seen a remarkable recovery in sales and improvements to profit margin from the COVID-19 pandemic, and we have built a robust profit structure. Capital investment to improv
Slide 29: 8th Mid-term Management Plan Financial Target Update
8th Mid-term Management Plan Financial Target Update Focus on increasing our top line, in addition to keeping the recently improved profit margin up. Aim to further expand the scale of operations. Net sales Operating profit 60,000 million 3,000 million JPY JPY +10,000 million +500 million JPY (+20.0
Slide 30: Basic Policy of the Updated 8th Mid-term Management Plan
Basic Policy of the Updated 8th Mid-term Management Plan Revamp Establish a lean profit structure Build a global earnings management Increase both the 80,000 base and management structure and top line and profit system sow seeds for increasing profit Aggressively invest for the future margin Period
Slide 31: Growth Strategy [Environmental Initiative]
8th Mid-term Management Plan ® Growth Strategy [ Environmental Initiative] Rideeco® is the Morito Group’s initiative to develop environmentally friendly products launched in fiscal 2021. We work to create new value so we can pass on our beautiful planet and its resources to future generations as we
Slide 32: Growth Strategy [Environmental Initiative]
8th Mid-term Management Plan ® Growth Strategy [ Environmental Initiative] It is estimated that about 40% of the total weight of plastic waste that washes ashore in Japan is discarded fishing nets and ropes*. We develop and sell materials made from recycled fishing nets. Recruitment and inquiries ar
Slide 33: Growth Strategy [Environmental Initiative]
8th Mid-term Management Plan ® Growth Strategy [ Environmental Initiative] ASUKAMI® is mixed paper made from scraps from sewing factories. Its greatest strength is that not only natural fibers such as food and plants, but also chemical fibers can be utilized as raw materials. It has been adopted by
Slide 34: Growth Strategy [Product Business' Kitchen Appliance-related Services]
8th Mid-term Management Plan Growth Strategy [Product Business’ Kitchen Appliance-related Services] Overview of kitchen appliance-related services Ace Industrial Machinery Co., Ltd. provides a rental service for various filters used in commercial kitchen exhaust ducts, including filter exchange, del
Slide 35: Growth Strategy [Focus on B2C Businesses]
8th Mid-term Management Plan Growth Strategy [Focus on B2C Businesses] We are working to become a global brand by creating authentic items with a focus on function, parts, and design. Outdoor brand POLeR® Down wear brand YOSOOU® Bag brand 52 BY HIKARUMATSUMURA Where innovation is the norm © 2024 MOR
Slide 36: Investment Strategy
8th Mid-term Management Plan Investment Strategy Aggressive investments are planned for further growth during the period of the 8th Mid-term Management Plan and beyond (from FY2027). 1,200 million JPY Existing investments and equipment retention Operating CF Growth investment 7,000 million JPY New p
Slide 37: Investment Strategy [M&A]
8th Mid-term Management Plan Investment Strategy [M&A] M&A policy 1. Niche top company 2. Group synergies 3. Stable earnings base Low risk Acquired in 2014: GSG FASTENERS, LLC (now Morito Scovill Americas, LLC) Increasing global share Affiliate for apparel, footwear, and bag materials Acquired in 20
Slide 38: Shareholder Returns
Shareholder Returns W here innovation is the norm © 2024 MORITO CO.,LTD. 37
Slide 39: Basic Dividend Policy
Basic Dividend Policy We regard returning profits to shareholders as one of the most important management issues, and determine the amount of dividends based on the following policy, taking into consideration investment projects and financial conditions (net assets, etc.). Dividend payout Realize st
Slide 40: Trends of Dividend, Dividend Payout Ratio & DOE
Trends of Dividend, Dividend Payout Ratio & DOE We adopted a revised basic dividend policy in FY2023. 60.0 Annual Ordinary 50.0 Dividend (JPY) Forecast 40.0 Commemorative Dividend (JPY) 30.0 Net Income (100 Million JPY) 20.0 Forecast 10.0 0.0 2024 2018 2019 2020 2021 2022 2023 (forecast) Net income
Slide 41: Summary
Summary ✓ Parts indispensable to daily life ✓ Global niche top company ✓ Rideeco® environmental ✓ Sound financial condition initiative ✓ Stable performance ✓ High dividend yield Morito Stock Information Company Name MORITO CO., LTD. Securities Code 9837 Listed Market TSE Prime Market Share Unit 100
Slide 42: Disclaimer
Disclaimer This handout has been prepared only for information purposes and is not intended to solicit investment. Although this handout is made with extreme care, its completeness cannot be guaranteed. We assume no responsibility whatsoever for any damages resulting from the contents. The financial
Slide 43: Where innovation is the norm
Where innovation is the norm Where innovation is the norm © 2024 MORITO CO.,LTD. 42