Unitika Report 2022
Integrated Reporthttps://www.unitika.co.jp

Connecting peopleʼs
lives and technology

X-00812̲2022.12.S01.F

ConvenientandcomfortablelivingOur Philosophy

Contributing to society
by connecting peopleʼs
lives and technology
Basic Management Policies
As a corporate group, we are committed to our philosophy of “contributing to society
by connecting peopleʼs lives and technology,” and to become an essential corporation

Living incoexistencewith theenvironment

for society that contributes to peopleʼs lives and the environment.
While advancing our basic management policies of “strengthening infrastructure
as a functional material manufacturer” and “strengthening our corporate characterand capital stock,” we maintain our firm belief that contributing to society not only increases
our corporate value, but also meets the expectations of our stakeholders.

Safe
and
secure living

1

Notes on the Integrated Report

Contents

In FY 2021, the Unitika Group integrated the usual Fact Book and Unitika CSR Report, and issued a Unitika Report that summarizes the financial
information and non-financial information in a single book. With this report, we are aiming to further deepen the understanding of our company
by a wide range of stakeholders, including shareholders and investors.
Organizations covered in the report: In principle, this report covers the activities of Unitika, Ltd. and the Unitika Group companies, both in Japanand overseas.
Period covered in the report: April 1, 2021 to March 31, 2022 (includes some information from April 1, 2022 onwards)
Issue: October 2022 (Next scheduled issue: October 2023)
Important notes concerning forecasts: The contents of this report are based on the information currently available to the Company, and on certain
assumptions the Company determines to be reasonable; the contents are not intended to be a promise by the Company that they will be achieved.
The actual results, etc., may differ considerably due to various factors.

Introduction

Value Creation Strategy

ESG

Financial andCorporate Information

1 Our Philosophy/Contents

927 Promotion of Sustainability

3 History of the Unitika Group

13 Value Creation Process

31 Environment

61 10-year Financial
Summary

5 Main Business Areasand Product Groups

15 Special Feature: Products in Focus

43 Society

21 Progress of Medium-Term
Management Plan

53 GovernanceUnitika Report 2022

7 Financial and Non-Financial
Highlights

Message from the President

63 Company Overview

25 Business Overview

Unitika Report 2022

2

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

History of the Unitika Group
Founded as a spinning company, we have expanded our product areas to address the various issues in society.

1889

1950

1970

1980

1990

2000

“Emblem”“Emblem NC”“Emblem” is making a positive“Emblem NC” are easy-to-tear
food packaging films, which
can be cut off in a straight line.

difference in food distribution,
as a superior strength foodpackaging film with an oxygengas barrier.

2010

2020

Release film
See p. 17
for details.

Gas barrier film
See p. 15
for details.

Recycled film
See p. 19
for details.

High gas barrier film
“Emblem HG”

Recycled nylon film
“Emblem CE”

Polymers
Polyester film
“Emblet”

Polyarylate“U-Polymer”

Simultaneous biaxial-oriented
nylon film
“Emblem”

IC clothSee p. 18
for details.

Easy-to-tear film
“Emblem NC”

Amagasaki Boseki(Later, Dainippon Boseki)
Head Office Plant

Heat-resistantpolyamide film
“Uniamide”

Nanocomposite

Retro-reflective cloth

Cotton spunlace

A retro-reflective cloth ismade from glass beads,
which can be used to keeproads safe to use at night.

Unitika provides a soft-texture,
nonwoven fabric made fromnatural fibers that have been
entwined using a waterjet.

Glass beads

Glass fiber IC cloth

Release film
“Unipeel”

Multilayer film
“Emblon”

This energy-saving and low-cost product separates thenanoparticles and dissolved
components in organic solvents.

Low thermal
expansion IC cloth

Activated carbon fiber
sheetsCore-sheath composite
nonwoven fabric“Eleves”

Solvent-resistant hollow
fiber membrane

Activated carbon fiber
products
See p. 16 for details.

Activated carbon
fibersRetro-reflectiv cloth

Spunbond
nonwoven fabricHeat-resistant polyamide resin“XecoT”

Spunlace

Performance
Materials

Smoke barrier“U-Clear Sheet”

Thermal adhesive long fiber“Melset”

Gas-permeable waterproof sheet“Eleves Capping Sheet”

Solvent-resistant hollow fiber
membrane“Hygra”
These fibers contain water-absorbingpolymers, which
help to control mustinessand stickiness.

Nippon Rayon
Nearby the Uji Plant Main Building Office

Biomass plastic
See p. 20 for details.

Meta-aramid fiber

Natural fiber

Synthetic fiber
Fibers & Textiles
Vinylon fiber

Polyester fiber

Cotton yarn
Rayon fiber

Multilayer yarn
“Palpa”

Recycled fiber“Uniecolo”

1950

1970

Founded as a spinning business in modern JapanThe History of the Unitika Group began in 1889, when thecompany Amagasaki Boseki Ltd. was founded. From 1918, we
supported the development of Japanʼ s fiber and textile industry
as Dainippon Boseki Co., Ltd., which was regarded as one of thethree major spinning companies. Then in 1969, we merged with
Nippon Rayon Co., Ltd. to create Unitika Ltd.

3

Unitika Report 2022

Cesium-adsorbing fiber

Reusable anti-stress mask

Nylon fiber

Silky material

1889

Polylactic acid
“TERRAMAC”

Ultra permeable waterproof material

Moisture absorbing/desorbing fiber“Hygra”

1980

1990

Expanded business areas after the post-war slump
The way of living and economic environment in Japan changed
considerably following the period of rapid economic growth
and the Oil Shock. Amidst that, we forged ahead withdifferentiating and diversifying Unitika from our competitors,
and developed our business into a wide range of areas fromfilms, resins and nonwoven fabrics to activated carbon fibers.
We expanded the areas in which Unitika products are used to go
beyond just clothing, and also encompass general daily life
goods, automobiles, and other applications.

Biomass nylon fiber“Castlon”

2000

2010

2020

Restructuring and reforming our businesses throughSpeeding up the development of environmentally friendly

selection and focus

materials and high value-added products

After the collapse of the Bubble economy, we reviewed our businesses
and set up new companies and overseas subsidiaries of our strong
businesses. Unitika moved ahead with its global expansion through aprocess of business selection and focus. We focused on new businesses
in polymers and performance materials, and strengthened development
and sales to rebuild our portfolio.

As the global demand for sustainability continues, in many of ourbusiness areas, the Unitika Group is speeding up the newdevelopment and strengthening of businesses of high value-added
products that can meet the needs of customers, and ofenvironmentally friendly materials such as energy-saving products
and products that use recycled resources and plant-derived raw
materials.

Unitika Report 2022

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Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Main Business Areas and Product Groups* Items numbered with a ■ are Unitika environmentally friendly materials.
Items numbered with a ● are Unitika materials. Items marked with a ● are applications.

Automobiles and Mobility

Unitika Materials

Automobiles
Films for industrial use
1 (including “Unipeel” and “Uniamide”)

Electric and Electronics

Living and Safety

Environment and Energy(Primary Industry)

Industry

Lifestyle

Civil Engineering and Construction

FishingandAgriculture

Other Mobility

1● Semiconductors, Smartphones● Processed meat products, Instant food products,

Food packaging films
2 (including highly functional

Films

2

products such as “Emblem HG”)

Convenience store food, Boil-in-the-bag food products,
Seasonal products, Confectionary, Souvenirs, Shampoo, Liquid detergent

3 Environmentally-friendly
packaging films

Polymers

4 “U-Polymer”

3● Lamps

5 “Elitel”, “Arrowbase”
Plastics● Office equipment,

4● Sensors, Switches, Smartphone cameras● Flat cables

Wristwatches5● Adhesives● Solar cells

Functional plastics
6(including highly functional
products such as
UNITIKA NANO-COMPOSITE NYLON6)● Engine covers, Mirrors● Interior parts,● Lighting equipment,

Electrical parts

Office equipment

7 “TERRAMAC”, “XecoT”

8 Activated carbon fibers

6● Sashes, Cable ties

7

● Office equipment● Deodorizing, Air purification materials

8● Filters (for liquid purification)● Daily necessities● Water● Water purification● Deodorizablepurifiers

filtersmasks

ACF
9 Highly functional porous plates
10 Industrial materials

Glass
FibersGlass
Beads

Performance
Materials● Materials for

11 Electronic materials (IC cloth)

Nonwoven
Fabricsheat radiation● Materials for electrical

1012

12 Glass beads● Reflective materials, Blasting, Fillers

13 Spunbond● Engine silencers, Carpet, Automotive interiors● High precision, Industrial use

Garment
Fibers● Humidifiers● Bag filters

11● Civil engineeringand construction materials● Reflective materials

13● Filter applications

10● Transparent non-combustible sheets● Tents and sheets● Road markings● Infection●Packaging materials,

protective clothes

Daily necessities, House wraps

Electrical wires● Sheets for agriculture

17 Polyester staple fiber● High-melting binder fibers

18 Ultra-high-strength polyester
filament yarns and monofilaments● Materials for tire (chafers)● Conveyor belts● Filters● Anti-perspiration sheets,21

and bedding)● Functional paper

18● Gut for fishing and other purposes● Medical and cosmetics● 3D printers● Filaments● Weed proofing

sheets● Materials

for concrete curing● Materials for civil engineering and construction● Materials for civilengineering and construction

19

civil engineering

16

Medical gowns, Wet towels

17● Daily necessities

20

Fibers and textiles
21 (garments, lifestyle materials,● Disinfectant cotton,

Disinfection sheets, Cosmetics goods● Hoses● Materials for14● Daily necessities

15 Spunlace

15● Sheets for greenhouses● Roofing, Carpet, Civil engineering materials,

14 “TERRAMAC”

19 “TERRAMAC”
20 PA hollow fiber membrane

Fibers&Textiles● Refrigerators

absorption and transpiration● Electronic materials

and electronic applications

16 Wet curing sheet for concrete

Industrial
Fibers9● Filters (for clean rooms)● Materials for water● Building materials● Fishing net

materials● Sandbags● Uniforms, Ladies, Sport, Casual, Bedding interior● Medical gowns

22 Ecofriendly, “TERRAMAC”

22

Polymers

Performance Materials

Fibers & Textiles

Main Products

5

Unitika Report 2022

“Emblem HG”“Uniamide”“Emblem HG” is a nylon film withstronggas barrier characteristics.
It has high gas barrier retention
properties specifically for retorting
and boiling applications, and canretain its barrier function evenunder a high-level of physical stress.

“Uniamide” is a biaxially oriented
high heat-resistant polyamide film.
Unitika used its technical expertiseand experience in film processing
to convert this resin into an oriented
film. Uniamide is well-suited toelectric and electronic applications.

UNITIKA
NANO-COMPOSITE NYLON6UNITIKA NANO-COMPOSITENYLON6 is a composite material
boasting superior hardness, heat
resistance, and moldability.
Potential applications for thisproduct are growing, such as inengine covers etc.

“U-Polymer”
Unitika was the first in the world
to develop industrialized polyarylate
resin. It is used in a range ofapplications, including precisionequipment, cars, m achiner y,
medicine, food products, andeveryday goods, etc.

Finished glass fabrics
for printed circuitboards
Unitika provides a unique level ofquality using our comprehensive
technologies, from materials
through to weaving and surface
treatment.

Glass Beads
Glass Beads are used for a range ofroad sign applications, including
white lines and pedestrian crossings.
Their retroreflective properties
increase visibility at night, playing
an important role in road safety.

Activated carbon fiber
filters
Unitika has developed a wide rangeof filters using activated carbon fiber.
These filters are used to remove
harmful substances and impurities
from water and the air.

“Marix”

Cotton spunlace“Melset”“Palpa”“Marix” is widely used in automotive
and interior applications as a basefabric for carpets.

Unitika provides 100% cotton
spunlace. It has superior sanitaryand environmental properties. We
are working on developing a wide
range of daily life applications for
Cottoace.

“Melset” is a high-strength andcore-sheath composite structure
multifilament, composed ofhigh-viscosity polyester resin at
the core and low-melting polyester
resin at the sheath. It is a core-sheathbinder fiber, which can be molded
into v a r i o u s s h apes by heat
treatment.

“Palpa”is the standard in multilayer
yarn products, introduced over
30 years ago. It features polyester
staple fibers wrapped in high-quality
cotton.

Unitika Report 2022

6

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Financial and Non-Financial Highlights

Financial Highlights

Non-Financial Highlights

Year-on-year

Net sales

Year-on-year

Operating profit+4,340 million yen

10 million yen▲

1,291.0
1,195.4
1,103.8

1,147.1

Operating CF(100 million yen)

Investment CF(100 million yen)

116.6

97.4
81.4
60.2

98.0

89.9

relative to FY 2013 level

Scope2

Scope1（kt）

Free CF(100 million yen)

352

148.7

54.7

21%

▲

（Scope1+Scope2）(100 million yen)(100 million yen)

1,283.9

CO2 emissions from all domestic
production sites

Cash Flow (CF)

61

86.7

87.0

296

293

283

38

33

34

259

260

248

279

270

65.1

60.1

△3.2

25.4

291

△4.0

26

23

253

247

△32.3
△61.7

△64.4
△101.9

2017

2018

2019

2020

2021

(

Fiscalyear)

Year-on-year

Ordinary profit

2017

2018

Profit attributableto owners of parent+1,020 million yen(100 million yen)

2019

2020

2021

(

Fiscalyear)

Year-on-year

2017

2018

2019

2020

△2021
89.9

Capital investment/Depreciation(Property, plant and equipment)

1,640 million yen▲

Capital investment(100 million yen)

80.8

26.5

2020

2021 Fiscal( year )

23%

▲

26.3

76.1

38.6
73.9

21.1

20.7

2018

2019

20.5

19.5

60.7

22.2

53.8

2019

（t）

93.2

64.0

2018

CO2 emissions related
to logistics

Depreciation(100 million yen)

99.7

70.9

2017

relative to FY 2013 level(100 million yen)

52.3

2013

year )(Fiscal

41.3

44.8

44.5

47.7

45.2

46.7

31.5

△21.6

2017

2018

2019

2020

2021

(

Fiscalyear)

Net assets/Capital adequacy ratio

2017

2018

2019

2020

2021

year )(Fiscal

2017

2018

2019

2020

2021

year )(FiscalR&D expenditures

Interest-bearing liabilities

2013

2017

Child-rearing leave usage ratio

Net assets (100 million yen)

407.3

18.4

413.5

19.0

Capital adequacy ratio (%)

389.3

18.3

411.9

430.7

20.7

1,052.5(100 million yen)

1,026.0

996.0

968.0

938.9

(People)

34.7

36.2

36.4

32.7

7

Unitika Report 2022

2018

2019

2020

( year )+20%

Female

100%

36.0
92%
(11)

100%
(9)

91%
(10)

(8)

100%
(5)

21.6
6%
(3)

2017

Male

2021 Fiscal

Male

Year-on-year(100 million yen)

2020

2021

year )(Fiscal

2017

2018

2019

2020

2021

year )(Fiscal

2017

2018

2019

2020

2021

year )(Fiscal

2017

15%
(7)

2018

8%
(4)

11%
(4)

2019

2020

31%
(13)

2021

year )(FiscalUnitika Report 2022

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Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Message from the President

Unitika aims to be a company thatcreates new value aligned with the times,
and that is continuously chosen
FY 2021: Rebounding from negative impacts, and securing operating profit
on par with the previous fiscal year
Although the impact of COVID-19 was less in FY 2021 than in FY 2020, the rapid and remarkable risein the prices of raw materials, fuel, and overseas logistics costs are factors that will drive down our
results going forward. Operating profit was negatively impacted by around 4,500 million yen due tointense price pressure from the skyrocketing costs of raw materials, fuel, and logistics.
Despite such a tough business environment, we were able to secure an operating profit of 6,000
million yen, which is on par with the previous fiscal year; I believe this was the result of promptly
putting in place various measures. We revised our prices and product mix, and coupled with a recovery
in sales volume, we somehow managed to rebound from these negative impacts. A driving force thatpushed us through these tough times was our shift to primarily high value-added products, such asenvironmentally friendly materials and highly functional products featuring Unitikaʼs proprietary
technologies and with a relatively high profit margin.
Due to an impairment of non-current assets, net income was 2,200 million yen̶a tough result of anincrease in net sales and decrease in operating profit. Nonetheless, it was also a year of positive
achievement in rebounding from the negative impact on operating profit of 4,500 million yen. FY 2022
will be the final fiscal year of the medium-term management plan that we started in FY 2020. I would
like everyone to keep steadily making efforts toward achieving our targets.

Shuji Ueno
Representative Director

Steadily implementing the medium-term management plan of 3Gs

and President, Chief Executive Officer

The three basic policies of the medium-term management plan G-STEP30 1st are Growth, Global, andGovernance.
For Growth, we will strengthen our revenue structure by accelerating the development of highvalue-added products. An area that has steadily grown within these two years of concerted efforts ishighly functional materials in the films business̶one of our original main businesses. We smoothly
grew sales in FY 2021 as well, for products such as packaging films with enhanced gas barriers,
silicon-free release films, industrial use films with high heat resistance and other properties, andultrathin glass fabrics that are increasingly in demand as electronic materials. Unitika has also been
focusing on the development of environmentally friendly materials, such as biodegradable plastics that
we started selling over 20 years ago. Recently, special plant-derived resins with high heat resistance arebeing more widely used in automotive parts and other areas. Unitika has also been in the spotlight forthe development of energy-saving and cost-saving nylon hollow fiber membranes including therecycling of waste solvents, as well as for the removal of impurities and condensation of targeted
objects in manufacturing processes using microfiltration.
Developing competitive products and launching them in the market in the right time and way are
essential for strengthening our earning capacity. We will continue to rebuild an even stronger businessportfolio that meets the marketsʼ needs.
For Global, there are many issues that have arisen as a result of the COVID-19 pandemic. We have set

9Unitika Report 2022

Unitika Report 2022

10

Introduction

Value Creation
Strategy

ESG

the target of an overseas sales ratio of 30% by 2030; it was roughly 22% before the COVID-19 pandemic

well as reviewing and maintaining relevant systems and equipment. This has enabled us to more

and then fell to around 19% in FY 2020. In FY 2021, we were eventually able to return the overseas sales

smoothly and speedily manage the processes from developing new technologies to commercializing

ratio to about 22-23%. Although it may not seem like we are making progress simply by looking at thethem into products that meet customersʼ needs. We are already seeing the tangible results of our

figures, during this period we have added more production equipment for food packaging films at ourefforts, such as high value-added products created from collaborations between the Research &subsidiary in Indonesia, and we are also strengthening our sales structure; so we have been making

Development Center and the research & development teams in business departments.

steady progress with these and other preparations. The COVID-19 pandemic has delayed the start ofFinancial andCorporate Information

In times of transition like these, where the structure of markets is changing considerably, it is

new production equipment, but we will finally begin full-scale operation in FY 2022.

important to apply wisdom and knowledge from both inside and outside the company. To that end, we

For Governance, we have been focusing on reforming our corporate culture and awareness. This

have been working with Shikibo Ltd., which was a former rival in the fibers business, and leveraging our

includes printing the Unitika philosophy, action guidelines, and other management principles on amutual specialties to develop products and engage in sales and production activities. In addition tocard, and distributing this card to all employees. Our aim is for all employees to carry this card withentering into business alliances between companies, we are also dispatching our research staff to work

them at all times, and use it as a guiding principle for “what is the right thing to do” when making

at universities and research institutions.

decisions and taking action. Risk management has also become more important than ever in thesetimes of increasing uncertainty. In FY 2022, I would like us to once again fundamentally review theUnitika risk management system, and keep making efforts to steadily strengthen it.

Moving forward with sustainability initiatives
In FY 2021, Unitika specified eight priority issues (materiality). Three of these issues relate to business

FY 2022: An even tougher business environment is ahead

activities, with many points that overlap with our philosophy and basic management policies and topics
that we have been working on for some time. The other five issues relate to corporate activities, and it

The prices of raw materials and fuel are forecast to soar even higher in FY 2022. Around 80%

is important to address them systematically. We recognize that initiatives such as creating a companyof the products we handle are chemical products, and the prices of chemical raw materials arethat is a rewarding place to work at and promoting diversity are also linked to reforming our corporate

already at their highest level in the past 20-30 years. We already revised our prices in FY 2021,

culture and awareness.

but we will have no choice but to make additional price revisions in FY 2022 as well.

In FY 2021, we launched the Sustainability Committee with myself as the Committee Chairman, andFaced with this tough environment, for the FY 2022 results we have set a target of increasing

clarified the indexes of the eight priority issues specified in the preceding Sustainable Businessnet sales by a little under 10%. However, we forecast operating profit will decrease by about 8%

Promotion Project. In FY 2022, I would like us to prepare a system for running the PDCA cycle based on(5,500 million yen) and net income will also substantially fall from 2,200 million yen in FY 2021

clear indexes. We have set 2030 as the target year, and we are currently involving relevant on-site

to 1,500 million yen in FY 2022.

departments in our discussions on setting milestones indexes for the midway point of 2025.

We should recognize these figures as our “defend to the last” line, and resolve to do our utmost
to meet these targets. In addition to revising prices, we will continue working hard to enhance

The content and progress of the activities managed by the Sustainability Committee will be reported
to the Board of Directors, and also subject to governance from the management side.

our lineup of environmentally friendly materials and highly functional products that are in highdemand in more growth areas, boost our earning capacity, as well as work on developing new
applications and cultivating new customers.

To all stakeholders
I strongly feel that in these times of dizzying changes, including the continual and considerable

Further strengthen technology anddevelopment̶the source of competitivenesschanges to the structures of markets caused by the COVID-19 pandemic, we need to keep our“antenna” even higher to catch all the relevant information. We also need to keep a keen eye on thechanges happening around us, gather information from a wide range of sources, make the “right”

It goes without saying that the source of Unitikaʼs competitiveness is our technical capabilities. Theredecisions for ourselves, and then act on them. To all Unitika employees, I always try to send out theare three pillars supporting our technical capabilities̶fiber and textiles technologies that we havemessage of embracing rather than fearing changes. Have a positive mindset about how to create andcontinued uninterruptedly since our foundation, polymer technologies, and advanced processing

provide value that matches these new times, and keep challenging yourself!

technologies. Ultrathin glass fabric and similar materials that have been developed recently, and are

Unitika will keep striving to be a company that is continuously chosen by customers, and comegathering attention as electronic materials, are made of glass fibers woven together using special

together as one Group to embrace challenges and contribute to society through manufacturing. I hopeprocessing technologies. This product can be described as a fusion of the strengths of Unitika. We pride

to receive the continued understanding and support of all stakeholders for the activities of the Unitika

ourselves on what we believe are the main strengths of Unitika̶combining these technologies toGroup.

speedily develop and provide products that meet the needs of the markets and times.
At the same time, in the extremely competitive materials industry, we need to constantly keep working
hard at further improving these strengths so that we can remain a company that is chosen by customers.
Using Unitikaʼs proprietary technologies to realize the functions customers want, and constantly
creating new value. I believe this will enhance our corporate value, and lead to sustainable growth.
As a step towards achieving that, we have been strengthening the collaborations between our Research& Development Center and the research & development teams set up in each business department, as

11

Unitika Report 2022

Shuji Ueno
Representative Director and President,
Chief Executive Officert

Unitika Report 2022

12

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Value Creation Process
Aiming to be a company that is continuously chosen, and contributing to the creation of a sustainable society

Our Philosophy

Business Model

Values Provided

Businesses

Desired Image (Long-term vision)

Safe
and
secure living

P o l y m e r s

We provide products that can protect
people from or minimize various risks
in their daily lives (disasters, accidents,
crimes, damage to health, etc.).

Main business and products:
Construction and civil engineering
materials, Industrial materials, Food
packaging materials, Sanitationmaterials

A company that iscontinuously chosen
by customers

Performance Materials

Fibers & Textiles

・A company that contributes
to society through manufacturing,See pp. 25‒26 for details.

Contributing to society

Strengths

by connecting peopleʼs・Responsiveness to diverse needs

Convenientandcomfortableliving・Global niche technologies and products

lives and technology

In response to globalization, digitalization,changing lifestyles, progressive aging, andother changes in society, we provide
products that are compatible with diverse
lifestyles and lessen the burdens of daily
life.

Main business and products:
Electrical and electronic materials,
Industrial materials, Filter materials

and is trusted throughout the world
・A company that creates new value
with unique technology,
and continues to grow sustainably
・A company that increases corporate

・Domestic and global top share products

value and is evaluated highly・Seven core technologies

by a wide range of stakeholders

Fibers and textiles technologies, Nonwoven fabrictechnologies, Film technologies, Polymerization
technologies, Compound alloy technologies,

Living incoexistencewith theenvironment

Emulsion technologies, Analytical evaluation
technologies
Strategies

Medium-term management plan
G-STEP30 1st

Basic matters underlying
the priority issues

13

Unitika Report 2022

The three items listed here are

Preparing a business
operation base“business-related priority issues,”

See pp. 21‒24 for details.

other priority issues.

Compliance

We provide products that contributeto the improvement of living standards
around the world, mitigation ofclimate change, reduction of theenvironmental impact, and resourceand energy saving.

Main business and products:
Biodegradable materials, Various
recyclable materials

Targets to be achievedby around 2030
Net
sales

200,000 million yen

Operatingproﬁt20,000 million yen

which are a part of the priority issues(materiality). See pp. 29‒30 for theStrengthen governance

Ensure product safety and quality

Promote digital transformation

Unitika Report 2022

14

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Special Feature: Products in Focus

Products
in Focus

1 Gas Barrier Film

Products
in Focus

2 Activated Carbon Fiber Products

Safe
and
secure living

ConvenientandcomfortablelivingSafe
andsecure living

Living incoexistencewith theenvironment

Convenientandcomfortableliving

Helping to provide safe and secure food products,
and reducing food loss.
Immediately after
retort treatment

After one monthEffectively removing toxic and odoriferous substances,
Unitika is supporting a safe and secure daily life.

Trends in food loss amounts

Shipments of water purifiers(10,000 t)(1,000 units)

643“Emblem HG”

Living incoexistencewith theenvironment

612

600

570

522

4,475

4,396

2020

2021

4,058

3,740

3,664

2017

2018

Generalbarrier ﬁlm
40°C, 90% RH (relative humidity) storage“Emblem HG”

Features of “Emblem HG”

Activated carbon ﬁbers

2016

2017

2018

2019

Activated carbon ﬁber products

2020

2019

(Fiscal year)

Lifestyle changes, such as an increase in single-person and double-income
households and more people having to stay at home due to the recent COVID-19

Source: Ministry of Agriculture, Forestry and Fisheries“Situation Surrounding Food Loss and Waste, and Recycling”(June 2022 Edition)

pandemic, have expanded the demand for ready-made meals. Easy-to-use foodhave superior speed in adsorbing toxic and odoriferous substances. These activatedpackaging films are proving to be useful in such a situation. Unitika is a leadingcarbon fibers can also be processed into various shapes, so they can be used in water

global manufacturer of nylon films that are used mainly in food packaging
applications. Using Unitikaʼ s technical capabilities, we are manufacturing products

products such as deodorizing and VOC* adsorbing sheets. With our products that
purify water and the air and prevent pollution, Unitika is helping people to live safely

food products.

and with peace of mind.

security of daily dietary lifestyles, and making it possible to store food products forlonger periods.

Unitika Report 2022

Source: Japan Water Puriﬁer Association“Water Puriﬁer Shipment Statistics” (July 2022)

purifiers to provide delicious and safe tap water for drinking, and also in filter
Relevant SDGs

with an improved oxygen gas barrier that can be used to control the deterioration of
Unitika is also helping to reduce food waste food loss by preserving the safety and

15(Year)

Activated carbon is used to remove minute amounts of toxic and odoriferous
substances contained in tap water and in the air. Unitikaʼ s activated carbon fibers

Relevant SDGs

* Volatile Organic Compounds (VOC):
Organic chemical substances (volatile organic compounds) that volatilize in the air at room temperature.
If VOC are emitted into the air and water, they can cause pollution and damage to health.

Unitika Report 2022

16

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Special Feature: Products in Focus

Products
in Focus

3 Silicon-free Release Film

Products
in Focus

4 Glass Fiber IC Cloth

Safe
and
secure living

ConvenientandcomfortablelivingSafe
andsecure living

Living incoexistencewith theenvironment

ConvenientandcomfortablelivingUsed in the manufacturing of electronics, and helping
to create a comfortable and convenient daily life.

Living incoexistencewith theenvironment

Used in printed circuit boards, and supporting
the functionality of all kinds of high-tech equipment.

Trends in PC shipments (Global)

Rate of household ownership of smartphones(Million units)

（%）

341
298
261

“Unipeel”

268

Usage example

Glass ﬁbers

2018

2019

2020

Source: Canalys

17

2021

Glass fibers are used in products such as building interior materials,

2019

2020

2021

(Year)
Source: Ministry of Internal Affairs and Communications“Information and Communications in Japan ̶ White Paper 2021”

Unitikaʼ s glass fabric for electronic materials are a fusion of various processing
Relevant SDGs

technologies. By combining this glass fabric with special resins, we can provide

Relevant SDGs

materials for printed circuit boards used in semiconductors, which have excellent
strength, electrical insulation, and dimensional stability. Unitikaʼ s world-classultrathin fabric is being used in digital devices that need to be slim and compact,

an in issue in the manufacture of mainly electronic parts, Unitika is helping tosuch as PCs, smartphones, and wearable devices, and helping to make daily life

create a comfortable and convenient daily life.

more convenient and comfortable.

Unitika Report 2022

86.8

everything from the raw fibers to weaving and surface treatment processing.

the components in these silicon compounds pollute the manufacturing processes“Unipeel” provides a solution to this issue by using silicon-free coating. By solving

2018

83.4

produces glass fabric using an integrated manufacturing system that manages

to enable the film to easily peel off from the parts they are attached to. However,uses silicon compounds cannot be used in high-tech electronic parts.

2017

79.2

non-combustible tent materials, bag filters, and printed circuit boards. Unitika

manufacturing of electronics parts. General release film uses silicon compounds

and negatively affect the electrical properties of the parts; so release film that

75.1

Usage example(Fiscal year)

Unitikaʼ s originally developed film “Unipeel” is mainly used in the

71.8

Unitika Report 2022

18

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Special Feature: Products in Focus

５

Products
in Focus

６ Biomass Plastic

Products

Recyclein FocusSafeandsecure living

ConvenientandcomfortablelivingSafe
andsecure living

Living incoexistencewith theenvironment

ConvenientandcomfortablelivingProviding recycled products to help prevent
global warming and reduce waste.

Proving biodegradable plastic madefrom biomass materials.
Total greenhouse gas emissions

Total emissions from waste plastic(100 million t-CO2)(10,000 t)

863

860

861

850

13.0

822

Tea bags“Emblem CE”

Weed prooﬁng sheets

12.9

12.1

2018

2019

11.5

Body towels

2017

2018

2019

2020

2016

2017

(Fiscal year)

Plastics, which are indispensable in our daily life, also need to be recycled tohelp prevent global warming and reduce waste. Unitika is expanding the range ofSource: Plastic Waste Management Institute “Situation on the
Production, Discarding, Recycling, and Disposal of Plastic
Products (2020)”(Year)

Plant-derived biomass plastic is a material that cycles carbon by absorbing
carbon dioxide in the air via the photosynthesis that occurs when its raw

Source: Ministry of the Environment, National Institute forEnvironmental Studies “Japanʼ s National Greenhouse Gas
Emissions in Fiscal Year 2020 (Final Figures)”eco-conscious plastic that doesnʼ t use fossil resources. Utilizing theyears, to include films as well. The food packaging films “Emblem CE” and“Emblet CE” are made using recycled materials obtained from chemical recycling

2020

materials of plants are growing. Unitika launched “TERRAMAC” in 1998 as anrecycled products beyond just fibers, which we have been recycling for many

Relevant SDGs

biodegradable features of its raw material polylactic acid, we have developed

and materials recycling methods. Compared with production not using recycled“TERRAMAC” for use in a wide range of applications in all areas of daily life

materials, we have calculated a reduction in greenhouse gas emissions generated

including resins, nonwoven fabrics, and fibers. Unitika will continue to develop

during production using recycled materials, for manufacturing up to the final

various biomass plastics, and provide materials that can contribute to reducing

product, to be around 40% for “Emblem CE” and about 30% for “Emblet CE”.

greenhouse gas emissions.

Unitika Report 2022

12.4

“Uniecolo”

2016

19

Living incoexistencewith theenvironment

Relevant SDGs

Unitika Report 2022

20

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Progress of Medium-Term Management Plan
Tangibly building our portfolio to strengthen our base and infrastructure,in the headwinds of the COVID-19 pandemic

Positioning of G-STEP30 1st,
our medium-term management planand secure living, convenient and comfortable living, andliving in coexistence with the environment.

Progress of G-STEP30 1st, our medium-term management plan

We are moving forward with our three-step initiatives
In May 2020, we revised the desired image of Unitika, andformulated G-STEP30, a long-term vision for around 2030.
Under our philosophy of contributing to society by

toward realizing our long-term vision, as we strive to achievesustainable growth and contribute to society. As a first step,
we have formulated the medium-term management planconnecting peopleʼs lives and technology, we are striving to

G-STEP30 1st, which runs from FY 2020 to FY 2022.

be a company that is continuously chosen by customers,

Positioning strengthening our base and infrastructure as ourwith the Group mission of contributing to achieving the

top priority issue, we will move forward with our initiatives

SDGs through the “three types of living” approach of safe

under the 3Gs themes of Growth, Global, and Governance.

Basic policies

Overview

Building a robust business portfolio
We will set revenue-strengthening targets for
products that are high value-added and are in

Growthhigh demand in society, strengthen our baseand infrastruct u r e by accelerating thedevelopment of high value-added products,
and move forward with initiatives centering
on promoting sustainability.

Medium-term management
plan『G-STEP30 1st』

Previous

FY2020〜2022

medium-term
management plan

■ Preparing a business operation
base● Building a robust business portfolio● Promotion of the global business● Reformation of the corporate
culture and awareness『G-STEP30 2nd』

Strengthening our base and infrastructure by speeding up
the development of high value-added products● Growth in sales of high value-added products in fields such as
food packaging, semiconductors, and water purifiers

Promoting sustainability (eco, creation of new business)● Growth in sales of environmentally-friendly food packaging films『G-STEP30 3rd』

FY2023〜2025

FY2026〜2028■ Shifting gears to strengthening
our businesses■ Establishing a growth cycle● Review and build new business
schemes● Implement growth investment
projects● Reform, build, and establish work
processes

Progress up to FY 2021

● Realize a stable growthtrajectory● Achieve a healthy financial
structure● Improve corporate value

A companythat iscontinuouslychosenBuilding a global production system
Promoting global business development
We are working on strengthening our overseas
production systems and establishing overseas
sales systems, so that we can drive forward

Global● Continue with increasing and reinforcing overseas production
equipment

Strengthening sales capabilities through alliances, etc.

overseas development that has a competitive● Strengthen overseas sales basesedge. We are also focusing on, as an issue of● Strengthen the films sales system

primary importance, the strengthening andtraining of the global personnel we need tosupport our overseas development.

including an overseas trainee system

Create and provide business value, improve the Groupʼs corporate value

Implement more technical training, strengthen personnel skills, evolve work processes, etc. to facilitate sustainable growth

Develop and strengthen global human resources● Continue with global human resources development programs

Contribute torealizing asustainable
society

Reformation of the corporate culture andawareness

Improve quality and build trust, ensure thorough risk management, expand business areas, etc. to prepare a business operation base

Establishing a quality assurance system● Make our quality assurance systems more advanced

We have reflected on the inappropriate cases in● Implement quality-related employee education

FY 2019 of certain products being manufactured
and sold by the Unitika Group that had quality

2019

2022

2025

2028

management issues. These cases have propelled2030<Actual Results>

GovernanceFibers & Textiles

119,500

147,000

million yen

million yen

5,500

11,000

million yen

million yen(4.6%)(7.5%)(Lower section: Operating profit margin)
Performance Materials

awareness to strengthen governance company● Raise awareness and educate employees about compliancemillion yen

Polymers

20,00050%

million yen

(10%)

30%

risk management, and strengthening processes
at the production sites as ways to return to thestarting point of manufacturing as a manufacturer,
and ensure such inappropriate cases of quality
management never happen again.

Overseas sales ratio
20%
Capital adequacy ratio 18%

21

Unitika Report 2022

Overseas sales ratio
28%
Capital adequacy ratio 23%

and harassment

establishing a quality assurance system, rebuilding

200,000

Upper section: Net sales
Middle section: Operating profit

our efforts to reform our corporate culture andwide. In our basic policy we have outlined

20%

Rebuilding our risk management system● Identify risks, and run the PDCA cycle

Strengthening manufacturing sites● Move forward with implementing IoT● Implement personnel training and education, and the teachingof technologies to the next generation of employees

Overseas sales ratio
35%
Capital adequacy ratio 30%

Unitika Report 20222

22

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Progress of Medium-Term Management PlanFY 2021 initiatives

GrowthGlobalDevelopment of environmentally-friendly products and high value-added products

Increasing nylon film production equipment in Indonesia

In the food packaging applications of high value-added products, sales have grown for the barrier nylon film “Emblem HG”. In

The demand for food packaging materials is expanding, mainly in Asia. This means

semiconductor-related applications, sales have been strong for the silicon-free release polyester film “Unipeel” and the glass fiber IC cloth,

we are continuing to operate at full production at the domestic Uji Plant and theparticularly the ultrathin type and low thermal expansion type. In water purifier applications, sales have grown for activated carbon fibers,Group company P.T. Emblem Asia (Indonesia).

with new uses for overseas markets associated with a recovery in demand for commercial-use water purifiers.

So that we can meet an additional expansion in demand in global markets, we are

In environmentally-friendly products, sales have grown for environmentally-friendly food packaging films that can help to realize abuilding a plant in P.T. Emblem Asia to boost production capabilities to 10,000 tons asustainable society. Also, sales have grown substantially for the high heat resistance polyamide resin “XecoT”, which is made using

year. Although there were delays in the initial plan due to the impact of the COVID-19

plant-derived raw materials, as it has been newly adopted in automotive applications and electric and electronic applications.

pandemic, the plant became operational in August 2022.

* See “Business Overview” (pp. 25‒26) for related information.

Governance
Strengthening our quality assurance systems
By making our quality management systems moresophisticated, incorporating inspection results, andautomating pass-fail assessments, we are thoroughlymanaging records and strengthening security. We have also
improved data reliability by making efforts to prevent data
falsification and reduce human errors.
Furthermore, with the integrated management of
measurement data to increase visibility and other measures,
we are making quality management work more efficient.
And we will strengthen our quality assurance systems, fortheir roll out in all departments.

23

Governance

GlobalIdentification and manegement of risks

Building a film sales base in Thailand

22

Under the Risk Management Committee, we are working

In January 2022, we newly opened a films sales department in Unitika Advanceto prevent risks from occurring, and minimize the loss and(Thailand) Co., Ltd., which has been handling the sales of resins in the Unitika Group.

damage when risks do occur.

In order to strengthen the sales capabilities for films manufactured by P.T. Emblem

Specifically, we will identify the various risks that we think

Asia, where we increased production equipment, we have built an inventory andare internalized within the Group, categorize the degree ofsales system that will enable the quick delivery of small lots in Thailand and otherimpact and frequency of occurrence of the identified risks,

countries in Asia. We are also expanding the sales of highly functional products toand then assess the risks, so as to visualize them. We willmeet the increasing demand in markets.

select the optimal approach for these risks, and carry out
management that will reduce and avoid them.

Governance

GlobalStrengthening manufacturing sites

Full-scale operation of sales company in Europe

We have implemented new production management systems at the Uji Plant andOkazaki Plant. We are currently using the integrated management of data to save onlabor and make more sophisticated use of information. Furthermore, we are
installing and using data analysis software and other tools to streamline production
and improve quality.
We are also systematically implementing personnel training and education andteaching production-related technologies to the next generation of employees. This
includes holding annual training sessions aimed at improving the safety
management and technical skills level of young employees. Also, for those
employees who will become site leaders, we are focusing on establishing adata-driven mindset by having them learn quality management methods.

The sales company Unitika Europe GmbH (Germany), which we established in FY
2020, has begun full-scale operations. This is a local corporation that has beencreated from the Unitika Office in Düsseldorf, which has handled market research andother activities, with the additional functions of operations, sales, andimports/exports. Unitika Europe GmbH (Germany) handles the products in all fieldsof the Unitika Group, and engages in a wide range of activities from customer service
to developing new businesses.
At present, the company is mainly handling imports and sales of products from theUnitika Groupʼs manufacturing bases in Japan, Indonesia, and Thailand. Goingforward, we are aiming to expand its functions to include shortening delivery times by
selling stock in Europe and making high value-added products using outsourced
processing.

Unitika Report 2022

Unitika Report 2022

24

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Business Overview

FY 2021 Overview
Net sales

Operating profit(100 million yen)(100 million yen)

Polymers

508
457

414

67
57

57

2019

2020

Main businesses and products• Films business: Nylon films, Polyester films• Plastics business: Engineering plastics
2019

2020

2021
(Fiscal year)

2021(Fiscal year)

In the Polymers segment, despite the negative impact ofskyrocketing prices of raw materials and fuel, unit sales
grew as whole on the back of a recovery in demand,
resulting in an increase in net sales and operating profit.
In the packaging field in the films business, demand wassteady for food packaging films as a new lifestyle of staying
at home became established during the COVID-19
pandemic. Sales grew for high value-added products, suchas environmentally-friendly food packaging films and thebarrier nylon film “Emblem HG” . In the industrial field,
sales were strong for high value-added products such as
those used in semiconductor-related applications and thesilicon-free release polyester film “Unipeel” . Meanwhile,
our overseas subsidiaries were substantially and negatively
impacted by turmoil in the ocean freight network and thesoaring costs of ocean freight. This resulted in an increasein net sales and decrease in operating profit for the films
business overall.
In the plastics business, sales recovered for nylon resins
and the polyacrylate resin “U-Polymer” . Although therecovery in demand in automotive applications was delayed
due to a decline in production units, demand recovered in awide range of applications including electric and electronic
applications. Sales grew substantially for the high heat
resistance polyamide resin “XecoT” , as it was newly
adopted in automotive applications and electric andelectronic applications. Sales were also strong for materials
for other functional plastics. This resulted in an increase in
net sales and operating profit for the plastics businessoverall.

FY 2021 Overview

Performance Materials
Main businesses and products

Net sales

Operating profit(100 million yen)(100 million yen)

344
323
296

• Activated carbon fiber business: Activated carbon fibers• Glass fiber business: Yarn, Glass fabric• Glass bead business: Glass beads• Nonwoven fabric business: Spunbond, Spunlace• Industrial fiber business: Polyester staple fibers,

2019

2020

2021

2019

0

2020

2021

(Fiscal year)

Composite fibers

Fibers & Textiles

80(Fiscal year)

Net sales

Operating profit(100 million yen)(100 million yen)

414

393

295
Main businesses and products• Garment fiber business: Fibers(Clothing, Daily necessities, Bedding)
2019

2020

2021
(Fiscal year)

0

▲4

▲6

2019

2020

2021
(Fiscal year)

25

Unitika Report 2022

The Performance Materials segment saw sales grow as awhole, since demand for construction and civil engineering
applications recovered in the latter half of the current fiscal
year. However, the negative impact of skyrocketing pricesof raw materials and fuel and turmoil in the ocean freight
network resulted in an increase in net sales and decrease inoperating profit.
In the mainstay water purifier applications in the activatedcarbon fiber business, sales grew on the back of a recovery
in demand for commercial-use water purifiers and theacquisition of new customers overseas. However, thebusiness struggled due to a reduction in production
associated with a supply shortage of semiconductors forautomotive applications and electronics industry-related
applications.
In the glass fiber business in the industrial materials
sector, sales recovered for construction and civilengineering applications, such as tents and sheets. In theelectronic materials sector, in addition to IC cloth, sales
were strong for high value-added products such as ultrathin
cloth and low thermal expansion cloth.
In the glass bead business, sales for road applications
remained flat from the previous fiscal year due to a slow

recovery of demand and the impact of damage fromtorrential rain. However, overseas sales grew for reflective
material applications, and sales were strong forindustrial-use blasting applications, etc.
In the nonwoven fabric business, demand for generalindustrial materials and construction and civil engineering
applications moderately recovered, while demandstabilized for medical gowns, disinfectant sheets and othersuch applications. Demand was sluggish for skin careapplications, due to restrictions placed on peopleʼ s
movements. In automotive applications, sales decreased
due to the impact of the semiconductor supply shortage
and other factors. Additionally, our overseas subsidiaries
were substantially impacted by turmoil in the ocean freight
network and the rising cost of ocean freight.
In the industrial fiber business, demand for staple fibers
recovered in each application, and sales grew for
ultra-high-strength polyester filament yarns, supported by arecovery of demand for construction and civil engineering
applications. Sales also grew for the high value-added
product of hollow fiber membrane materials. However, allof these products were negatively impacted by theskyrocketing prices of raw materials and fuel.

FY 2021 Overview

Sales ratio by businessIn the garment fiber business, sales grew as demand foruniforms and womenʼ s clothing moderately recovered.
Exports of denim also rapidly rebounded with a recovery of
demand from Western countries, which have been early inshifting to measures for living with the COVID-19
pandemic. Meanwhile, the demand for medical gowns,
which was vigorous in the previous fiscal year, stabilized
and sales declined. In terms of costs, the soaring prices ofraw materials and fuel and logistics costs, an increase inprocessing fees due to lockdowns occurring at overseas
sewing bases, and exchange rate factors all overlapped toplace substantial upward pressure on costs. As a result of
operating in such a severe business environment, both net
sales and operating profit decreased.

Fibers & Textiles
26％
FY 2021Net sales
114,700
million yen

Polymers
44％

Performance Materials
30％

Unitika Report 2022

26

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Sustainability
Formulate KPIs for priority issues (materiality), and set up a system for promotion

Progress of the Sustainable Business
Promotion ProjectSome of the KPIs and target values were continually
discussed up until FY 2022, and in April 2022 we confirmed

Formulating policies for sustainability

Promotion system

the KPIs and target values and established a full-scale
promotion system. Going forward, we will move ahead withIn December 2020, we launched the Sustainable Business

our initiatives while reviewing methods for managing

Our policy for sustainability

Promotion Project to fulfill the Group mission set out in the

progress and other areas, and strengthening the promotion

long-term vision of contributing to the SDGs with the “threesystem.

The Unitika Group will contribute to the realization of asustainable society by connecting peopleʼs lives andtechnology through its business activities.

types of living” approach. We have referred to the SDGs

We will also work on finding solutions for the priority issues,Compass and GRI Standards for this Project and promoted

as well as providing products that are needed and strengthening

various measures. In FY 2021, we finished specifying the KPIs

our corporate infrastructure and base. Through these efforts,

and priority issues (materiality). We have also establishedwe will keep helping people to live a better life, and continue

the Sustainability Committee, and set up a system forto grow as we strive to be a company that is continuously

running the PDCA cycle for sustainability activities.

chosen by customers.

Up to April 2021
Launched the Sustainable Business Promotion Project,and specified its priority issuesStart of KPIs review

July 2021
Specified the KPIs and target values

December 2021
Established the Sustainability Committee

December 2021
Established a promotion system

We referred to the Sustainability Development Goals and Targets
and GRI Standards and organized the initiatives, and then we
identified the issues to be resolved by 2030. We verified the risks
and opportunities of each of these issues and their positioning
on the value chain, narrowed down the important items, andspecified the priority issues.

By implementing the Sustainable Business Promotion Project infour phases, we have narrowed down the number of KPIs andspecified the target values. The specified priority issues, KPIs,
and target values have been approved at management meetings.
After we have achieved these target values, we will set new KPIs
and even higher target values.

We established the Sustainability Committee to achieve theUnitika Groupʼs priority issues and corresponding KPIs andtarget values.

We appointed KPI managers in the first Sustainability Promotion
Committee, and set up a system for promoting sustainability. We also
started reviewing policies for sustainability.

In April 2022, the Unitika Group formulated a policy forsustainability at the Sustainability Committee. This policy
specifies our philosophy and Group mission for realizing
our long-term vision from a sustainability perspective.
We have been working to resolve the eight priority issues
under these sustainability policies. The three priority
issues related to business, which we have set as priority
issues associated with our productsʼ values, are precisely
the Group mission for realizing our long-term vision. We
are striving to resolve these issues by providing productsthat protect people from disasters and accidents, crime,
damage to health and other incidents, products that arecompatible with digitalization and diversifying lifestyle
habits, and products that help reduce CO2 emissions,conserve resources, and prevent environmental pollution.
The five priority issues related to corporate activities arevarious issues that we should consider when carrying out
our business activities. Specifically, the issues we areworking on are carrying out environmentally-friendly
business activities, respecting the human rights of all
stakeholders, ensuring our employees can live a healthy
life, preparing a work environment that is motivating andsatisfying for a diversity of personnel, and detecting andavoiding risks in the supply chain.

At the Sustainable Business Promotion Project, we discussed
which issues should be specified as priority issues. After
specifying the priority issues and KPIs and entering theaction phase, we launched the Sustainability Committee
as an organization for overseeing our actions going forward.
The Committee is composed of general managers and Group
company presidents, with the Representative Director andPresident of Unitika serving as the Committee Chairman.
The details of the discussions at the Sustainability Committee
are reported to and approved by the Board of Directors.
The top management of each department also participate
in the discussions as committee members, so that we canmove forward with our initiatives at a companywide level.
The committee members oversee all activities, and also
take the lead in driving forward initiatives as KPI s managers.
Goal■To achieve the Unitika Groupʼs priority issues and corresponding targets,
KPIs, and target values.
■Members (8)President (Committee Chairman), General Manager of Administration
Division, General Manager of Technology Development Division(andGeneral Manager of Production), General Manager of Polymers Sector,
General Manager of Performance Materials Sector, General Manager ofCorporate Planning Division (and General Manager of Corporate
Management Division), General Manager of Global Business Promotion
Division, President of Unitika Trading■Contents of discussions● Adequately assessing the Unitika Group ʼ s p ri o ri ty issues andcorresponding targets, KPIs, and target values● Managing the progress of KPIs, and drafting measures for promoting
KPIs● Reviewing sustainability-related m a t t e r s such as policies forsustainability

The sustainability policy of the Unitika Group

Priority issues (materiality)

Our
Philosophy
Contributing to society by

April 2022
Formulated policies for sustainability

We held the second Sustainability Committee, confirmed specificmeasures to achieve the target values, and formulated policies
for sustainability.

connecting peopleʼs lives and technology

Group Mission
Contributing to the SDGs
with the “three types of living” approach

July 2022
Checked the current state,
and reviewed the KPIs and target values

We checked the current state of our initiatives at the third
Sustainability Committee, and reviewed the KPIs and target
values.

Desired Image (Long-term vision)
We are aiming to be a “company
that is continuously chosen by customers.”

27

Unitika Report 2022

Our policy
for sustainability
Specify

The Unitika Group willcontribute to the realizationof a sustainable society byconnecting peopleʼs lives
and technology through its
business activities.

Business-related priority issues●Realizing safe and secure living●Realizing convenient andcomfortable living●Realizing living in coexistencewith the environment
Corporate activities-related
priority issues●Promoting corporate activities incoexistence with the environment●Human rights●Employee engagement●Diversity●Supply chain management

Unitika Report 2022

28

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Promotion of Sustainability

Priority issues (materiality) and KPIs
In July 2021, we formulated the KPIs for our priority issues. At the Sustainability Committee held in July every year,
we check the progress of our initiatives, review the measures being implemented, and take additional action as required.

Priority issues

Realizing safe
and secure living

KPIs

Manager

FY 2030 targets

FY 2021 actual results

Relevant products and measures

Relevant SDG

Renewalmonth/year

Masakazu Kitano
Director, Senior Executive Officer
General Manager of Technology Development Division,and General Manager of Production

Tsunetoshi Matsuda

Gas barrier films, Protective clothing, Masks,

Director, Senior Executive Officer
General Manager of Polymers Sector
Responsible for Global Business Promotion Division

Differentiating nonwoven fabric, Functional plastics,

Realizing convenient

Net sales of materials that contribute

2.6 times relative

1.0 times relativeand comfortable living

to the SDGs with the “three types of living”

to FY 2019 level

to FY 2019 level

Hirokazu Taketoshi

Glass fibers, Uniamide, Silicon-free release films,
Materials recycling fibers, hollow fiber membranes

Revised in July 2022

for separating solutions, TERRAMAC fibers,

Managing Executive Officer
General Manager of Performance Materials Sector

Nylon films for lithium ion batteries, Recycled films

Realizing living incoexistence

Masahiro Hosoda
Managing Executive Officer
Government Supplies Department President, andRepresentative Director of Unitika Trading Co., Ltd.

with the environment

Promoting corporate
activities in coexistencewith the environment

Masakazu Kitano
Director, Senior Executive Officer
General Manager of Technology Development Division,and General Manager of Production

Eiji Sumi

Human rights

Director, Managing Executive Officer
General Manager of Administration Division

Masakazu Kitano

Employee engagement

Director, Senior Executive Officer
General Manager of Technology Development Division,and General Manager of Production

Eiji Sumi
Director, Managing Executive Officer
General Manager of Administration Division

CO2 emissions

46% reduction relative

21% reduction relative(All domestic Group companies)

to FY 2013 level

to FY 2013 level

Amount of industrial waste disposedof outside the plants(All domestic Group companies)

10% reduction relative

6% reduction relative

Develop new recycling applications

to FY 2019 level

to FY 2019 level

for waste within the plants

Implementation rate of human rights-related
education(Entire Group, including overseas companies)
Number of accidents causing lost work time(All domestic Group companies)
Certification as an Excellent Healthand Productivity Management Corporation(Unitika Ltd. and some Group companies*)
Ratio of women at the management level(Entire Group, including overseas companies)

Diversity

Eiji Sumi
Director, Managing Executive Officer
General Manager of Administration Division

Ratio of female new recruits (career position)
working at the head office(Unitika Ltd.)
Rate of men taking child-rearing leave(All domestic Group companies)

Katsuhide Kyunai

Supply chain management

Managing Executive Officer
General Manager of Corporate Planning Division,and General Manager of Corporate Management Division

Response rate of CSR procurement survey(Main clients)

20%(Implemented once
throughout the entire
Group over five years)

0① Acquire certification②White 500

39%(Domestic)

Unitika Human Rights Policy

Strengthen the intrinsic safety of manufacturing equipment,1

Not yet certified

20%

5.9%

30%

16%

50%

31%
(Unitika Ltd.
and some Group companies*)

80%

Install energy-saving equipment, Emissions trading

87%(Implemented in FY 2022)

and review utilities

Unitika Health Management Declaration

Enacted in July 2021

Enacted in July 2021

Revised in July 2022

Enacted in July 2021

Enacted in July 2021

Revised in
December 2021

Unitika Diversity Management Policy

Enacted in July 2022

Enacted in July 2022

Purchasing Policy, CSR procurement survey

Enacted in July 2021

* Five companies: Nippon Ester Co., Ltd.; Unitika Trading Co., Ltd.; Unitika Textiles Ltd.; Unitika Glass Fiber Co., Ltd.; Unitika Garment Technology Co., Ltd.

29

Unitika Report 2022

Unitika Report 2022

30

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Environment

Environmentally Friendly Materials

Basic Concept:
For Life on Earth Tomorrow
From daily living, we can change the environment of
tomorrow: The Unitika Group is thinking of ecology, withmaterials as the starting point. Materials that create
products, including daily necessities and parts for industrial
products, play a significant role in moving forward towards amore earth-friendly lifestyle. We wish to expand eco-friendly
and human-friendly products even further. Unitika cares
about and creates life on earth, for tomorrow.

packaging applications.
Using the Life Cycle Assessment method, we calculated thegreenhouse gas emissions associated with their production.
A comparison (done by Unitika) with production not using
recycled materials shows an expected reduction in greenhousegases of around 40% for “Emblem CE” and about 30% for“Emblet CE”.

various grades when combined with other resins using ouroriginal compounding technology.

Biomass Materials“TERRAMAC”“TERRAMAC” is a biomass material made using polylactic acid (PLA),
which is made from plant-derived sugars. It has a wide range ofapplications including in tea bags, etc. The raw material of “TERRAMAC”
is PLA, which is a biodegradable plastic that decomposes into water andcarbon dioxide in the natural environment.

Manufacturing flow ofenvironmentally-friendly food packaging films,
and chemical recycling

Impeller made using” XecoT”

Nylon, Polyester resin, and Molded goods
Industrial waste
products

Chemicalrecycling

Recycled Materials
Recycled
materials“Emblem CE”, “Emblet CE”
The packaging films “Emblem CE” and “Emblet CE” aremade using recycled materials obtained from chemical recycling
and materials recycling methods. These films have thesame printability and mechanical properties as 100%
petroleum-derived plastic films. Also, as we strictly manage
the recycled materials used, these films are suitable for foodPolymerization Collection

Materials
recycling

Nylon resins
Polyester resins

Tea bags madefrom
“TERRAMAC”(underconsideration)

Recycling

Recycled
materials

Energy-Saving Materials

Biodegradation

Industrial waste
products
Cut-offmaterials
etc.
Film forming,
Stretching

Nylon films“Emblem CE”
Polyester films

Unitika provides a three-dimensional cubic knitted textile composed

Industrial waste
products
Printing,
Laminating,Bag manufacturing

Three-dimensional knitted textile
of monofilament connecting fibers with a multifilament and spun

Flexible packing
materials“Emblet CE”“Castlon”

yarn front-and-back cloth structure and moderate stiffness. It is used

“Castlon” is a 100% biomass material of environmentally-friendly

in items such as a futon (Japanese bedding). It is a cushiony and breathable

polyamide (nylon 11), which is made from castor oil (ricinoleic acid)material that is soft on the body, and has good air permeability.

extracted from the seeds of the non-edible castor oil plant (ricinus).

Bedding made using this textile does not easily trap heat or moisture

It is a lightweight material with excellent wear resistance. This makes(humidity), so you can sleep comfortably even during summer.

“Castlon” suitable for use in various applications including sportswear,
outdoor wear and other clothing materials, as well as materials for shoes.

Structure of three-dimensional knitted textile<Honeycomb structure>

Unitika is also helping to improve poverty among the local farmers
who grow the castor oil plants (used to produce “Castlon”) in theAirpermeability

Indian state of Gujarat, which has mostly barren land due to little

Unitika Groupʼs activities to reduce
environmental impact

rainfall after an extremely short rainy season.

“TERRAMAC”(Surface)“Emblem CE”, “Emblet CE”

Air recycling

Heat radiation
Moisture desorption(Image diagram)“Emblem CE” and “Emblet CE” arenylon ﬁlms and polyester ﬁlms forfood packaging that make eﬀective
use of recycled resources by recycling
chemicals.

“TERRAMAC” is a biomass material
composed of polylactic acid (PLA),
which is made from plant-derived
sugars.

(Side, Zoomed in)”Thermotron RadiPoka””Thermotron RadiPoka” demonstrates a high level of heat retention

Ecofriendly“XecoT”“XecoT” is a biomass material
made from plant-derived castor
oil. It is a highly heat-resistantpolyamide resin for automobilesand electronic equipment parts.

ReduceHollow ﬁber membraneThis ﬁlter can separate impurities at
the molecular level.
It is an energy-saving material thatcan reduce energy consumption byswitching from the distillation
method.

31

Unitika Report 2022

Recycleperformance through the synergy effects of energy from sunlight andfar-infrared rays. By fusing light-absorbance and heat-conversion

These are our uniqueenvironmentally-friendly polyestermaterials, which are made from used PET
bottles and waste materials generated in
the production process.

functional material and far-infrared ray radiation functional material
Eco-bag madeusing “Castlon”

Company-wide activities
We are carrying out activities toreduce the environmental impact
centering on our production sites,such as controlling CO₂ emissions,
reducing energy usage, anddecreasing the amount of waste.

UNITIKA NANO-COMPOSITE NYLON6

Wet curing sheet for concrete

We provide a colored nylon
resin with a good metallic
external appearance, even
without coating.

A wet curing sheet for concrete
is made from natural cotton raw
material. It can be used repeatedly.

into a single filament, ”Thermotron RadiPoka” is able to absorb sunlightand convert it into heat, which it uses to actively heat up the far-infrared
ray radiation functional material and subsequently further boost its
radiation of far-infrared rays.

“XecoT”“XecoT” is also made from castor oil, the same raw material
used to make “Castlon”. It has the highest level of heat
resistance among polyamide resins, and so it can also be usedin the engine compartment of automobiles. “XecoT” haspotential applications as a next-generation engineering resin.
“XecoT” has a wide range of properties, including coming in

Unitika Report 2022

32

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

E Management of Initiatives for the Environment
Environment

Unitikaʼs Environmental Preservation
Activity History
The Unitika Group has been continuing with and evolving
our environmental preservation activities for over 50 years.
We will continue with our environmental management into
the future.
Pollution first became a major issue in Japan in 1973. That
year, Unitika created the Environmental Preservation Regulations,making a clear distinction between environmental measuresand outward-directed production activities, to enable compliancewith regulatory and standards values. In 1991, we created acompanywide organization called the Environmental Preservation
Committee, followed in 1993 by the Unitika Global Environment
Charter. That year we began yearly environmental auditing,establishing the basic direction for our environmentally-aware
management style that has continued to this day. In 1998,
we created the Unitika Charter of Corporate Behavior, adocument that sets forth the basic action policy needed tofulfill our Unitika Group mission as a public-spirited
corporation. Its first article sets forth our responsibility forenvironmental and safety awareness.
The Unitika Action Standards created and implemented in
April 2001 expanded on the Unitika Action Charter, bysetting forth specific action standards for Unitika
organizations and employees to comply with in theperformance of their routine business activities. Based on
this, we started corporate activities grounded in a mindset ofcorporate social responsibility (CSR). They cover areas suchas the environment, safety, compliance and society, andshared awareness with stakeholders.

Basic Environmental Policy
The Unitika Group named 1993 as an Environmental First
Year, when we enacted the Unitika Global Environment
Charter compiled from our pledge, basic philosophy, andaction guidelines. Since then, we have complied with thisCharter to ensure that our corporate management methods areenvironmentally aware, working on a range of environmental
activities.

Unitika Global Environment Charter
Pledge
The growth and development of mankind is rapidly altering
our planetʼs air, water and soil, threatening both the global
biosphere and our own future, since both must depend on a
finite ecosystem. As a corporation with more than a century
of business activities contributing to the public good, we arehighly aware of the demanding conditions now facing the
global environment. The Charter is the declaration of ourintention to focus more attention on protecting and helping
the environment, making appropriate environmental action
the core of our business activities.
Basic Philosophy
Better living through technology, driven by corporate
activities that help humans and nature coexist.

Action Guidelines
1. Continual awareness of the global environment
The Unitika Group always considers the effects of ourcorporate activities on the global environment, following
a rigorous set of management procedures during productmanufacture to prevent harm to it.
2. Contributing through technology development
We aggressively research and develop technologies
to protect and help the global environment.
3. Using resources and energy efficiently
We promote efficient use of resources and energy,
and recycle limited resources.

ISO 14001-Certified
Unitika Organizations
The Unitika Group is working on becoming certified under
ISO 14001, which is the international standard forenvironmentally-aware corporate activities. Since 1999, four
production sites (Uji, Okazaki, Tarui, and Tokiwa) and majorGroup companies have become certified. We have started
activities to help our affiliates obtain ISO 14001, while also
conducting environmental audits of each company.

ISO 14001-Certified Unitika Plants
April 1999

Adʼall Co., Ltd.

4. Carrying out PR and educational activities
We organize a large number of PR activities thatprovide information on protecting and helping the
global environment, and promote and implement a wide
range of educational events.

January 2001

Unitika Textiles Ltd., Tokiwa Mill

March 2001

Unitika Ltd., Uji Plant

March 2001

Unitika Ltd., Uji Plastic Plant

March 2001

Unitika Ltd., Research & Development Center

5. Drawing on the complete range of Unitika Group
competencies
Following the mandates of the Charter, we draw on
our complete range of competencies to protect and help
the global environment.

March 2001

Unitika Glass Fiber Co., Ltd., Kyoto Plant

October 2001

Unitika Ltd., Okazaki Plant

October 2001

Nippon Ester Co., Ltd., Okazaki Plant

December 2001

Unitika Ltd., Tarui Plant

December 2003

Unitika Glass Fiber Co., Ltd., Tarui Plant

September 2004

Terabo Co., Ltd.

Management System
Unitikaʼs Environmental Preservation Activity History

33

September
1973

Created and implemented
Environmental Preservation Regulations.

January
1999

Unitika Chemical was awarded ISO 14001 certification(first in Group).

October
1991

Revised Environmental Preservation Regulations,established Environmental Preservation Committee.

October
2000

Created targets for second Medium-Term Environmental
Plan (FY 2000 to 2002).

April
1993

Created and implemented Global Environmental Charter.

April
2001

Created Unitika Action Standards.

May
1993

October
Revised Environmental Preservation Regulations,
2002
enacted and enforced as Environmental Regulations,and set up and held annually the Environment Committee. October
2002

May
1994

Started environmental audits (once per year).
(Voluntary audits by each production site,
and internal audits by headquarters staff.)

July
1996

Published Unitika Environmental Report.
Created targets for third Medium-Term Environmental
Plan (FY 2003 to 2005).

October
2005

Created targets for fourth Medium-Term Environmental
Plan (FY 2006 to 2008).

October
2008

Created targets for fifth Medium-Term Environmental
Plan (FY 2009 to 2011).

Created targets for first Medium-Term Environmental Plan
(FY 1997 to 1999).

October
2011

Created targets for sixth Medium-Term Environmental
Plan (FY 2012 to 2014).

September
1996

Started publishing Kankyo, our in-house newsletteron environmental issues.

January2015

Created targets for seventh Medium-Term Environmental
Plan (FY 2015 to 2017).

October
1997

Started activities aimed at becoming ISO 14001-certified
at our major production sites.

January
2018

Created targets for eight Medium-Term Environmental
Plan (FY 2018 to 2020).

January
1998

Created and implemented Unitika Charterof Corporate Behavior.

October
2020

Created targets for ninth Medium-Term Environmental
Plan (FY 2021 to 2023).

Unitika Report 2022

The Unitika Groupʼs Environment Committee manages
the environment-related initiatives of the Group, and also
coordinates specific energy-saving activities.
The Environment Committee regularly checks the managementof noise levels, industrial waste, exhaust gases and waste waterof production sites and related companies carrying out
production activities, as well as the emissions of environmentallyhazardous substances of concern (SOC) and compliance withlaws and regulations. The Committee checks the managementof facilities for processing exhaust gases and waste water, andconducts on-site inspections to check how industrial waste andhazardous substances are being stored. Every three years, theUnitika Group formulates a Medium-Term Environmental Plan,and promotes initiativesto achieve that plan.
Every year, the production sites and related companies carryingout production activities share the energy-saving themes they
have compiled, and the Committee checks on the progress ofthese energy-saving activities. The Committee also checks the
specific energy consumption (SEC), energy consumption
amount, and CO2 emissions, and promotes energy-saving
activities with a target of a 1% yearly improvement of thespecific energy consumption (SEC).

Endorsing Initiatives
The Unitika Group has been endorsing the Japan Clean Ocean
Material Alliance (CLOMA), a platform for promoting initiatives
aimed at solving the issue of marine plastics pollution, since
CLOMAʼs establishment. We are also continuing to develop anddistribute environmentally-friendly materials.
In March 2022, the Unitika Group also endorsed the GX League
Basic Concept, which was announced by the Ministry of Economy,
Trade and Industry (METI). We are taking part in discussions
on the full-scale start of this initiative in 2023.
In June 2022, the Unitika Group also announced ourendorsement of the Task Force on Climate-related
Financial Disclosures (TCFD) Recommendations, andcarried out climate change risk analyses (see p. 36).
We also conduct scenario analyses, and will continue todisclose further information going forward.

Unitika Report 2022

34

Introduction

E Medium-Term Environmental PlanE Climate Change

Medium-Term Environmental Plan

Recognized Climate Change Risks
Based on the TCFD Recommendations

103.8

Production sites

7,382

7,358

1,270

1,313

1,395

2019

Production sites（ML）

while selecting the target businesses and application
areas in Unitika. Furthermore, we will review the risks

2020

2021

(Fiscalyear )

143

142

138

20

21

and opportunities as required, as we gradually expand

In December 2021, we set up the Sustainability Committee,
with the Representative Director and President, Chief Executive
Officer of Unitika serving as the Committee Chairman (see p.
27). Under the Sustainability Committee, relevant departments
work together to conduct analyses for disclosure on
opportunities and risks related to climate change issues. The
progress of these activities is reported to and discussed by
the Board of Directors, which also gives direction and grants
approval to the Committee.
We will continue to further prepare and strengthen a governancesystem in Unitika that addresses climate change.

the range of information for disclosure.

Risk Management
We are currently considering an integrated process forrisk identification, evaluation, and management as well ascompanywide risk management, and we will continue with
our initiatives aimed at this.

Indexes and Targets

Group companies

150

149

740

1,187

2018

Energy consumption volume (crude oil equivalent)

6,883

7,138

95.1

95.4

Group companies

7,280

100.9

100.0

Volume of processed industrial waste products（t）will conduct even more in-depth scenario analyses,

Governance

2017

19

We have disclosed Scope1 and Scope2 as the FY 2021 actual
results of GHG emissions (CO2 emissions). We are aiming fora 46% reduction in CO2 emissions (relative to FY 2013 level)
by FY 2030 (see p. 37.)

Strategies

16

15

Unitika recognizes the following items as important
6,112

6,045

5,885

2018

2017

2019

6,143

5,951

2020

2021

(

Fiscal
year

130

128

124

2018

2017

2019

2020

2021

Rate of recycling

CO2 emissions from energy generation

（%）

（kt）

87.6

87.3

87.8
85.9

Production sites

85.9

2019

2020

2021

Group companies

Transition

278(Fiscalyear )

343

Main risks(Fiscalyear )

385 40360 359 351 354
53
57
49 324 306 295 292
47
282 269
42
39
40
37
35
27
332

2018

Main Risks and Initiatives Based on the TCFD Recommendations

489
39

450

2017

127

123

Category

)

risks

304

305

282

267

Increase in costs associated with introducing

Medium-to

legal risks

a carbon tax and emissions trading-long termMarketReduce the demand for materials with

Medium-torisks

a substantial environmental impact-long term

255

247

Main initiatives●Make the manufacturing process more eﬃcient
Large●Reduce total greenhouse gas emissions●Consider the use of renewable energy●Expand the range of recycled products

Large●Expand investment and development for the growthof environmentally-friendly businesses

27

Reputation
255

Period ofDegreeactualization of impact

Policy and

Decline in the external evaluation and corporate brand
302

Financial andCorporate Information

risks and opportunities related to climate change. We

Specific energy consumption(SEC) (index of FY 2018 as 100)In FY 2021, the first fiscal year of the Ninth Medium-Term
Environmental Plan, the energy consumption and CO2
emissions increased slightly due to increased production
activities within the Unitika Group. However, we were able
to reduce the amount of industrial waste processed outside
the plants by making industrial waste a valuable substanceand reviewing the manufacturing processes; subsequently,
we improved the specific energy consumption (SEC). As aresult of these efforts, we were able to achieve three out offive of the targets.

ESG

Environment

Environment

Ninth Medium-Term Environmental Plan
(FY 2021 to FY 2023)

Value Creation
Strategy242

2512005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

(Fiscalyear )

risks

of companies due to insuﬃcient information disclosureand not enough action on environmental issues

Medium-to-long term

Large

●Enhance information disclosure●Formulate a long-term environmental roadmap

PhysicalAcute andStop operations of business bases due to typhoons,

Short-toMedium-to●Carry out risk management and a systematic responseriskschronic risks

ﬂoods and other disasters-long term

-large●Implement disaster readiness training

Ninth Medium-Term Environmental Plan (FY 2021 to FY 2023)
IssuesTargets

Reduction of the amount of industrial
3% reduction relative to FY 2019 level
waste disposed of outside the plants

35

Baseline values(Performance ina standard year)

FY 2023
target values

FY 2021
actual results

Main Opportunities and Initiatives Based on the TCFD Recommendations
Results
Category

7,357t

7,063t

6,883tAchieved

Improvement of recycling rate

1 point improvement relative
to FY 2019 level

87.7%

88.8%

85.9%

Not achieved

Reduction of energy consumption
volume5% reduction relative to FY 2018 level

150ML

142ML

142ML

Achieved

3% reduction relative to FY 2018 level

0.759 L/kg

0.736 L/kg

0.722 L/kg

Achieved

Reduction of CO2 emissions fromenergy generation

55% reduction relative to FY 2005 level

489kt

220kt

278kt

Not achieved

Unitika Report 2022

Strengthen subsidized businesses associatedwith the development and implementationof environmentally-responsive materials
Opportunities

Improvement of specific energy
consumption (SEC)

Main opportunities

Period ofDegreeactualizationof impact

Short-to-longtermMediumMain initiatives●Utilize various subsidized businesses

Products
and services
Increase demand for environmentally-responsive
materials and expand business opportunities

Medium-to-longtermMedium-to-large●Develop biomass-derived products and recycled
products●Develop lightweight materials●Develop business for “products that contribute torealizing living in coexistence with the environment”

Unitika Report 2022

36

Introduction

E Climate Change/Waste Reduction

E Management of Chemicals

Prevention of Global Warming

Reduction of CO2 Emissions Related
to Logistics

Management of Chemicals

Unitika undertakes a variety of efforts to reduce theenvironmental impact associated with the delivery andemission of raw materials, products, waste, and othermaterials. These include promoting the shift of cargotransportation modes to more environmentally-friendly
methods (modal shifts), and streamlining transportation to
improve efficiency. As a specified consignor, Unitika reported
60,509 kt/km of freight and 20.5 kt of CO2 emissions (26%reduction relative to FY 2013 level) to the government in FY
2021. Unitika will strive for eco-friendly logistics within thewhole group by implementing a variety of practices. These
include but are not limited to: expanding the use of trains,promoting idle stops, and the use of ecological tires.

Promotion of the Chemicals Management
at Domestic and Overseas Locations

Environment

Basic Concept
The Unitika Group is focusing on reducing CO2 emissions,such as by being a leader among other companies in installingcogenerators in our production sites.
In April 2021, the Japanese government raised the domestic
greenhouse gas emissions reduction target from 26% to 46%
relative to FY 2013 level. Following on from this, the Unitika
Group has also set out in the July 2021 Sustainable Business
Promotion Project the FY 2030 reduction target for CO2
emissions from domestic production sites to 46% relative to
FY 2013 level. We are aiming for net zero carbon emissions
by 2050.

Reduction of CO2 Emissions Related
to Business Activities

KPIs (FY 2030 targets) of Priority Issues (Materiality)

The FY 2021 CO2 emissions of all domestic production sites(including the head office and business offices) in the
Unitika Group was 279 kt in total for Scope 1 and Scope 2.
Based on the current government target with FY 2013 as thestandard year, our reduction rate is around 21%. We will also
start to calculate Scope 1 and Scope 2 of our overseas
production sites and Scope 3 of the Group as a whole, andcontinue our efforts to further reduce CO2 emissions.

CO2 emissions from all domestic production sites（Scope1+Scope2）（kt）

Scope2

Scope1CO2 emissions:
189 kt (46% reduction relative to FY 2013 level)(domestic production sites)
FY 2021 actual results:
278 kt (21% reduction relative to FY 2013 level)

Waste Reduction
Although an increase in production activities in FY 2021
resulted in more industrial waste being generated at
our production sites, we were able to reduce theamount of industrial waste from the previous fiscal
year level thanks to efforts such as making scraps of
nonwoven fabric and glass fiber, which are usuallytreated as waste, into valuable substances, andswitching to sewage discharge of waste water. We willcontinue to promote the recycling of disposed plastic
and in-process recycling, while also seeking out newusage methods. (See p. 35 for the data)

ESG

Financial andCorporate Information

Environment（t）

EmittedTransferred

106
35
73

106
13

15
71

60

The Unitika Group promotes initiatives that correspond to
the Act on the Regulation of Manufacture and Evaluation ofChemical Substances, the European regulations for theRegistration, Evaluation, Authorization and Restriction ofChemicals (REACH), the Globally Harmonized System ofClassification and Labeling of Chemicals (GHS), and otherchemical management systems in Asian countries. With
meetings intended for information-sharing and compliancewith the laws and regulations, we are also striving to disseminate
information within the Group and to share information between
relevant personnel.

45
9

57

41

36

2017

2018

2019

2020

8
33

2021

Promotion of Waste Disposalof Devices that Contain PCBManagement of Substances Subject
to PRTR System Notification

It is stipulated by the Act on Special Measures Concerning
Promotion of Proper Treatment of PCB Wastes to complete
the disposal of devices that contain PCB by the end of March
2027. The Unitika Group has disposed of devices containing
PCB, etc. that are owned by our offices and affiliates.
As of March 2022, we had an 89% progress rate for the
disposal of devices containing PCB on a monetary base forthe entire Group (only for devices with known disposal costs).

The Unitika Group is making efforts to monitor and reducethe volume of chemical substances that are emitted into theatmosphere, as regulated by the Pollutant Release andTransfer Register (PRTR) system as chemical substancesthat are potentially hazardous to human health and theecosystem. Compared to FY 2020, in FY 2021 we were able
to slightly reduce the emissions and transfers amounts.

（t/y）

Emissions Amount and Transfers Amount for PRTR System-Regulated Substances in FY 2021

Transferred

Emitted
Water

Total

Total

Acetaldehyde

2.4

0.8

3.2

ー

Antimony and antimony compounds

ー

0.1

0.1

ー

Bisphenol A

ー

ー

ー

0.2

ɛ-Caprolactam

15.7

ー

15.7

0.5

1,4-dioxane

ー

0.1

0.1

0.1

Dichloromethane (Methylene chloride)

11.1

ー

11.1

0.2

Dimethylformamide

0.5

ー

0.5

0.9

Terephthalic acid

ー

ー

ー

0.4

Toluene

0.6

ー

0.6

3.3

Boron and boron compounds

0.2

ー

0.2

ー

Polyoxyethylene alkyl ether

ー

ー

ー

1.1

Styrene

ー

ー

ー

0.5

Methyl alcohol

0.5

ー

0.5

ー

VOC

0.6

ー

0.6

0.4

Other

ー

ー

ー

0.4

https://www.enecho.meti.go.jp/category/saving̲and̲new/saving/enterprise/overview/institution/

Unitika domestic plants & on-site group companies total

29.4

1.0

30.2

2.0

(The Business Operator Classiﬁcation Evaluation results are published on the website of the Agency for Natural Resources and Energy.)

Unitika external domestic group companies total

2.2

ー

2.2

6.0

291

70

286

51

274

56

251

38

259

33

260

34

248

23

247

26
253

KPIs (FY 2030 targets) of Priority Issues (Materiality)
2013

2014

2015

TOPIC

2016

2017

2018

2019

2020

2021

(Fiscalyear )

Amount of industrial waste disposed of outside the plants:
6,621 t (10% reduction relative to FY 2019 level)
FY 2021 actual results:
6,883 t (6% reduction relative to FY 2019 level)

Union Co., Ltd. acquires the S (excellent energy saving) rating for the third consecutive
year, in the Business Operator Classification Evaluation System of the Energy Saving Act

The Ministry of Economy, Trade and Industry has awarded Union Co., Ltd., a general manufacturerof glass beads, the S (excellent energy saving) rating for the third consecutive year for its actual
results from FY 2018 to FY 2020. The company was evaluated as a business operator (that achieves theirtargets) with excellent energy-saving initiatives, in the Business Operator Classification Evaluation
System (SABC Evaluation System) of the Act on Rationalizing Energy Use (Energy Saving Act).
All employees will work together and continue with our energy-saving efforts going forward.

Unitika Report 2022

(Fiscalyear )* Up until the previous fiscal year, the polymer raw materials included in
non-standard products were tallied as unreacted materials in the reported
transfers amount; however, as they are reactants, we have excluded polymer
raw materials from non-standard products and retallied them.

Air

61

37

Value Creation
Strategy

Unitika Report 2022

38

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

E Pollution Prevention
Environment

Reducing Environmental Impact
on Air and Water

Environmental load on water (COD)
Production sites

（t）

143

Domestic plants are pursuing measures, such as switchingenergy from fuel oil to liquid natural gas and stopping diesel
power generation, to reduce emissions of dust, nitrogen oxides(NOx), sulfur oxides (SOx), and carbon dioxide (CO2). Unitika
also works to reduce the environmental impact on water
through the appropriate management of wastewater treatment
facilities.
In FY 2021, regular repairs of the gas boiler at the Okazaki
Plant increased the operational time of the heavy oil boiler,
which subsequently increased the emissions of dust and SOx.

6.47

4.56

2018

2017

0.5

2019

109

105

2020

2021

(Fiscalyear )

Total waste water quantity（km3）

Production sites

1,118

33,280Group companies

1,080 30,670

32,20033,758

1,030

29,951
974

29,64029,900

2020

2021

(

Fiscalyear

Tarui Plant

Site area: 311,781 m2
ISO 14001 Certification No. JCQA-E-0249
Main products: Nylon resins, Nylon fibers,
Engineering plastics, Nylon/Polyester films, etc.

Site area: 165,309 m2
ISO 14001 Certification No. JCQA-E-0323
Main products: Spunlace nonwoven fabrics,
Glass fabrics

Okazaki Plant

Tokiwa Mill

Site area: 313,865 m2
ISO 14001 Certification No. JCQA-E-0292
Main products: Polyester resins, Polyester fibers,
Spunbond (filament nonwoven fabric), etc.

Site area: 64,530 m2
ISO 14001 Certification No. JCQA-E-0221
Main products: 100% cotton yarns, Synthetic blended
yarns and 100% cotton yarns, Woven fabrics withsynthetic blended yarns

996
28,90428,977

Environmental impact at production sites

2018

2017

2019

2020

2021

(Fiscalyear )Unit
Uji Plant
Site area: 311,781 m2

COD: Chemical oxygen demand

JCQA-E-0249

Production sites

Okazaki Plant

Group companies

24.0

13.4

10.6

10.0

10.0

2018

2019

2020

2021

(Fiscalyear )The Unitika Group always tries to conduct our businessactivities with consideration for the lives of people in local
communities. In reaction to the complaints we received, we
have been putting efforts into preventing any recurrence byimmediately examining the causes of the problems andcommunicating with the people in the community. We willkeep improving in order to contribute towards a comfortableliving environment for people in the community. In FY 2021,
we did not receive any complaints from the surrounding
neighborhoods.

Site area: 313,865 m2

ISO 14001 Certification No.
JCQA-E-0292
Tarui Plant
Site area: 165,309 m2

ISO 14001 Certification No.
JCQA-E-0323
Tokiwa Mill

Complaints from surrounding neighborhoods

NOx emissions（t）

Production sites（t）Group companies

Other

Offensive odor

Noise

Water

561

528
197

488

508
125

JCQA-E-0221
143

131

138

403

2

357

370

2

2017

39

2018

Unitika Report 2022

Dust

BOD

COD

Oil

Total nitrogen Total phosphorus

ppm

ppm

g/N㎥

mg/L kg/day

mg/L

mg/L

mg/L kg/day

ー

29

199

0.025

ー

1131

30

16

ー

722

ー

98

5 Uji-Tonouchi, Uji-shi, Kyoto

ー

15

28

0.02

2.8

217

6.6

0.7

2.4

138

0.06

3.4

Nylon resins, Nylon fibers,
Engineering plastics,
Nylon/Polyester films, etc.

ー

93

100

0.05

25

905

20

10

15

482

2

62

4-1 Hinakita-machi,
Okazaki-shi, Aichi

ー

15

57

0.001>

2.3

53

4

0

1.8

29

0.31

5.1

Polyester resins,
Polyester fibers, Spunbond(filament nonwoven fabric), etc.

11.5

ー

150

0.3

40

109

50

5

120

43

16

5.6

2210 Tarui-cho, Fuwa-gun,
Gifu

7

ー

24

0.012

4.9

27

2.6

0.8

1.6

3.6

0.1

0.4

Cotton nonwoven fabrics,
Glass fabrics

17.5

ー

130

0.3

80

ー

100

2.5

ー

ー

ー

ー

88 Nakabara, Soja-shi,
Okayamaー100% cotton yarns,
Synthetic blended yarns and100% cotton yarns,
Woven fabrics of synthetic
blended yarns

mg/L kg/day

2019

2020

2021

(Fiscalyear )

2017

0.8

ー

83

0.002

<0.5

ー

<1

<1

ー

ー

ー

3
3

417

Site area: 64,530 m2

ISO 14001 Certification No.

1
403

NOx

K-value

Air

6

614

158

Location

Environmental Complaints

SOx emissions

2017

Water
Suspendedmatter)ISO 14001 Certification No.

（t）

Air
SOx

Note) NOx: Nitrogen oxides, SOx: Sulfur oxides,

2019

Uji Plant

Production sites

4.37

3.43

2.93

2.69

3.4

109.5

1.94

1.64

1.63

108.4

6.5

128

2018

2017

6.31

5.07

3.76

3.36

115.5

Group companies

6.45

3.11

4.1

109

34,876

Production sites

132.1

139

Dust emissions（t）

4

Results by Production Sites

Group companies

2

2018

3

1
1

2019

2020

0
2021

(Fiscalyear )

Main products(Notes) The displayed regulation values are the most rigorous values mandated by the law(Air Pollution Control Act or Water Pollution Prevention Act), regulations, and prefectural guidance or conventions.
These include the environmental impact from affiliates within the production sites.
SOx is sulfur oxides, NOx is nitrogen oxides, COD is chemical oxygen demand, and BOD is biological oxygen demand.
The displayed air pollution values are the measured values for the major facilities at each production site(the totals are the values for the entire production site).
The displayed water quality (pollution) values are the highest values measured at the drain outlets at each site(the loading amounts are the values for the entire production site).

Unitika Report 2022

40

Introduction

E Flow of Materials

E Environmental Accounting

Environmental Impact in Business Activities (FY 2021 Results)

Environmental Accounting

Environment

INPUT

The Unitika Group implements environmental accounting
as part of our environment-conscious business activities.

OUTPUT
Atmospheric emissions

Water
27,147km³
BreakdownRiver water

23,465km³

Ground water

3,613km³

Drinking water

8km³

Industrial water

62km³

SOx

13t

CO₂

278kt

NOx

488t

Dust

6t

Waste water
29,900km³
COD emission quantity

Energy110t

142 ML

Raw materials

Business Activities

Waste productof theAmount processed
outside the plants

Unitika Group%Internal recycling
andheat collection
Materials recycling
11,118t
Thermal recycling0t●To make environmental preservation more efficient by
quantitatively identifying the amounts of investments andexpenses for environmental preservation, and to carry out
reasonable decision making for environmental preservation
initiatives.
●To disclose environmental accounting information to ourstakeholders, and to fulfill our responsibility to keepthem informed.

Tally range
Unitika Ltd. domestic plants & on-site group companies
Union Co., Ltd., Osaka Dyeing Co., Ltd., Terabo Co., Ltd.,
Unitika Sparklite., Ltd.

6,883t3,755tAmount of incineration or
3,128tlandfill disposal

Tally method
Investment amounts include environmental investments ofitems for which the environment is not the main objective.
Expense amounts include labor costs, general expenses, anddepreciation.

FY 2021 Environmental Costs
The Unitika Groupʼs FY 2021 environmental investment was
475 million yen. The main targets of investment are the ones
regarding measures for the reduction of the environmental
impact, disposal of devices containing PCB etc., and therecycling of raw materials.
The expenses regarding environmental preservation were1,263 million yen. The main items include the maintenanceand management of pollution prevention equipment,
disposal of industrial waste (including recycling expenses),
research and development of environmentally-friendly
products and technologies, and social activities such asafforestation and city beautification initiatives.

The table lists items with a clear basis for calculation that havehigh substantive benefits for environmental preservation.
Note that inferred benefits have not been calculated.

FY 2021 Economic Benefits
Item

FY 2021(million yen)

Proceeds from the recycling of waste generated by businessactivities and the recycling of used products, etc.

137

Savings effect in emissions processing costs and industrial
water costs associated with the cyclical use of water, etc.

23

Savings effect in energy costs from energy-saving activities,
etc.

50

Savings effect in processing costs from recycling
and measures to reduce waste

20

Savings effect in contributions designated by law associatedwith reductions in emissions amounts of regulated
environmentally hazardous substances of concern (SOC)

ー

Total

231

FY 2021 Environmental Costs
FY 2021 (million yen)

Chemicals*
Emitted33t

Transferred

8t* Substances subject to PRTR Systemnotification

Category

Capitalinvestment

Costs

Pollution prevention costs
Business
Environmental preservation
area
costs
costs

171

469

Pollution (water, air and noise pollution) prevention measures

3

11

Energy saving, Global warming prevention measures

171

418

Waste volume reduction, Materials recycling, Disposal of PCB/AsbestosーーGreen procurement activities

Resource recycling costs
Upstream/downstream costs

All products
Production amount
191kt

Recycling amount outside
12,378tof plants

Unitika Report 2022

Financial andCorporate Information

FY 2021 Economic Benefits

PeriodApril 1, 2021 to March 31, 2022

BreakdownAmount of recycling inintermediate processing

216kt

Purpose of Environmental Accounting

Method of Tallying Environmental
Accounting Data

Waste water volume(crude oil equivalent)

ESG

Environment

The diagram below shows the Unitika Groupʼs flow of materials for FY 2021.

41

Value Creation
Strategy

Remarks

Management activity costsー100Environmental management system maintenance, Environmental education,
Burden monitoring, Increase of greenery within factories

R&D costsー254

Developing environmentally-friendly products

CSR costsー2Regional cleaning activities

Environmental damage costs

129

10

Cost for soil contamination countermeasures, Quantity-based taxes

Total

475

1,263

Unitika Report 2022

42

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

S Relationships with Customers

S Relationships with Shareholders and Investors

Rebuilding Quality Assurance

IR Activities

Society

and a Management System

Society

Unitika Group Quality Policies

Share Status(as of March 31, 2022)● With our value of “prioritizing quality over cost and speedy

The Unitika Group regularly holds the Quality AssuranceCommittee, which is chaired by the President, as we keep
working on strengthening our governance.
In addition to thoroughly familiarizing all quality assurance
workers with the Guidelines for Quality Assurance, whichwere enacted in 2019, we are also carrying out quality
compliance education for 60 management-level employeesof sales departments in the Group and implementing e-learningfor 180 employees involved in quality assurance work.
In our management systems, we are strengthening the structureof the quality assurance departments within the Group, andcontinuously implementing quality audits as a part of ourefforts to build and reorganize the quality assurance system.
We are also using audits to ensure the reliability of data,
make sure we are keeping our promise to customers, andcheck for any defects and irregularities in the quality assurance
system. In these ways, we are striving to prevent inappropriate
incidents, and to monitor and improve the state of ourquality management.
We will move forward with reforming corporate culture andawareness in order to ensure employees thoroughly understand
to “prioritize quality over cost and speedy delivery” as is
specified in the Unitika Group Quality Policies, and to ensure
there is a Group-wide awareness of compliance, including
quality assurance.

delivery,” the Unitika Group provides products that our

At Unitika, we carry out business activities as we strive to be acustomers can use safely and with peace of mind.

company that is continuously chosen by customers, under ourphilosophy of contributing to society by connecting peopleʼs
lives and technology. Within this and from the management
perspective of focusing on stakeholders, the Unitika Group
strives to create several opportunities to enable timely
information disclosure to shareholders as well as existing andpotential investors. The Unitika Group implements activities toensure these opportunities run smoothly, and works to
improve dialogues with shareholders as well as existing andpotential investors.

● We comply with the laws and regulations concerning
products and services, and adhere to the agreements wehave with our customers.
● To meet quality requirements, we build quality into our
products through repeated verifying and testing during
design, development, and manufacturing.
● We continually maintain our quality assurance system, andwork to improve quality.

Annual General Meeting of Shareholders
Excerpt from the Guidelines

The Annual General Meeting of Shareholders is held in latefor Quality Assurance

June. At this Meeting, the Company outlines its latest business<Basic Action>● Ensure all quality assurance workers comply with laws andregulations related to products and services, and that they
are thoroughly aware and strongly motivated to “never do,or let others do, dishonest and falsifying actions.”● Enter into agreements with customers that can be complied
with, and successively check the compliance status.
● Share information related to quality assurance within
business departments and among Unitika Group companies
and departments with jurisdiction.

Total Number of Shares Issued

Common shares
57,752,343
Class A shares
21,740Class B shares
1,751

Shareholder Distribution Ratio(Common Shares)

conditions and engages in dialogue with shareholders, throughGovernments /Local Governments Bodies

which it seeks to provide a better understanding of the CompanyʼsFinancial Institutions

current management condition and policies.

Announcements of Financial Statements
and Explanatory Sessions

Number of Shares

57,752,343

31.21％

Financial Instruments Firms 3.80％
Other Corporations

Unitika conducts a variety of financial data disclosure activities,
including twice-yearly second quarter and full financial year
accounting statements for the press, both of which are followed
a week or so later by an explanatory session for institutional
investors and analysts.

0％

2.55％

Overseas Corporations, etc. 11.37％
Individuals / Others

51.07％

Institutional Investor Visits

Ensuring Product Safety

Unitika representatives make visits to institutional investors andanalysts, in order to provide more specific information as needed.

Number of Shareholders

Common shares 32,274

Publications

Employees learning about quality compliance

Unitika has established the Product Safety Management
Regulations designed to ensure that we always offer safe products
to our customers. These safety management regulations containdetailed provisions on areas such as basic policy, responsibility
areas, implementation systems, and bylaws on the implementation
and application of manual procedures. Unitika and Unitika Group
companies work to ensure that product manufacturing and sales
are carried out safely and in compliance with these regulations.
Information on the claims which may bring about an accident isshared by the Quality Assurance Committee and the Central
Committee on Product Liability, and such information is used toprevent the recurrence of repeated claims, etc.

●Financial Results(Four times annually, in May, August, November, and February)● Shareholder Reports(Two times annually, at second quarter and full year closing)● Corporate Guides● Unitika Report

Class A shares

1

Class B shares

2

Shareholder Distribution Ratio(Common Shares)

Website Disclosures
Unitikaʼs website contains the Investor Relations page forshareholders as well as existing and potential investors; it
discloses IR information and press releases on products andservices. There is also an archive of past financial results, IR
briefings materials and securities reports, etc.

Numberof Shareholders

32,274Governments /Local Governments Bodies

0

Financial Institutions

32

Financial Instruments Firms

43

Other Corporations

271

Overseas Corporations, etc.

160

Individuals / Others

43

Unitika Report 2022

31,768

Unitika Report 2022

44

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

S Relationship with Our Employees
Society

Promoting Awarenessof Human Rights

Raising Human Rights Awarenessand laws and regulations
This human rights policy has been formulated in accordancewith the United Nationsʼ Guiding Principles on Business andUnitika Human Rights Policy

Human Rights. The Unitika Group supports and respects thefollowing international norms.
● The International Bill of Human Rights, the most basicand

In July 2022, the Unitika Group formulated its human rights
policy. As a member of the Corporate Report Association of
Human Rights Issue, Unitika has been working extensively
on human rights issues in a variety of ways, such as bygathering educational information on human rights. We areaware that the world is becoming increasingly conscious ofhuman rights, and we have reflected this in our human rights
policy by moving forward with our business activities while
protecting the human rights of all stakeholders connectedwith our businesses.
We will familiarize Unitika employees, business partners
and clients, etc., with this human rights policy, and carry out
the various measures listed here.

comprehensive human rights norms in the internationalsociety● The Ten Principles of the United Nations Global Compact,which are ten principles stipulated in the four fields of humanrights, labor, the environment, and anti-corruption● The ILO Core Labour Standards, in which the International
Labour Organization (ILO) stipulates the basic rights in labor
We will also comply with the laws and regu lations ofcountries and regions where we carry out business activities.
When there are differences in the laws and regulations ofcountries and internationally recognized human rights, we will
pursue methods that respect the international principles ofhuman rights.

2. Education and training
Unitika Human Rights Policy
The philosophy of the Unitika Group is “contributing to society
by connecting peopleʼs lives and technology.”

The Unitika Group is educating our executive officers andemployees, so that they understand and put into practice thishuman rights policy.

The Unitika Group Code of Conduct that is assigned to ouremployees specifies respect for human rights. We are working
towards human rights awareness in the Group by setting up
a human rights awareness promotion organization andconducting in-house human rights training for our employees
including the president, executives and the presidents of ouraffiliates.
As a member of the Corporate Report Association of Human
Rights Issue, Unitika works on human rights issues in a variety
of ways, such as by gathering educational information onhuman rights.
We have set up support desks at our production sites andGroup companies for consultations on sexual harassment,
power harassment, maternity harassment, and other formsof harassment related to pregnancy, childbirth, child-rearing
and nursing care, with the aim of raising the level ofawareness and recognition of our employees.
We are considering expanding these support desks to someoverseas production sites to strengthen the response system
when our business activities directly or indirectly negatively
impact human rights.
Number of human rights training participants(FY 2021)

Based on our philosophy, we are aiming to be a “company
that is continuously chosen by customers,” as is set in our
long-term vision G-STEP30. The Unitika Group is a memberof the international society, and so we have set in the Unitika

3. Human rights due diligence
We will set up human rights due diligence mechanisms,
identify the negative impacts on human rights that the

Human Rights Policy (hereinafter, “this human rights policy”)

Unitika Group has in society, and correct and lessen these

our commitment to respecting the human rights of all

impacts.

stakeholders (suppliers, business partners and clients, Unitika
Group employees) as we move forward with our businessactivities. We believe promoting these initiatives for respecting

In regard to the negative impacts on human rights that occur(decent work) and correct inequalities; this is aligned with thefrom carrying out our businesses, we will talk to and consult

our global customers.

with relevant internal and external stakeholders while also
taking into account the views of external experts.

5．Correction and relief
When our business activities directly or indirectly negatively
impact human rights, we will enhance the mechanisms forrelief by conducting appropriate surveys and responding(People)The Unitika Group has disclosed our human rights initiatives
based on this declaration on the Unitika website, etc.

The Unitika Group is promoting diversity management andutilizing a variety of personnel to create new value. We haveformulated the Unitika Diversity Management Policy, whichtakes into consideration our long-term vision and medium-term
management plan.

Unitika Diversity Management Policy
1. Human resources education policy
The Unitika Group is promoting diversity management by
utilizing the differences among our varied personnel andmaximizing their skills and potential to keep creating
added-value.
2. Connection to our management vision
By practicing diversity management and enhancing ourcorporate value, we are aiming to be a “company that iscontinuously chosen by customers.”

In order to promote diversity management, the Unitika Groupis making efforts to prepare a work environment that is

Female

Male

Total

motivating and satisfying for all employees. We are doing

298

697

995

pers o n n el ca n r es pect each other and grow together,

Total number of human rights
training participants

this by fostering a workplace culture where a diversity ofpromoting a variety of work styles that meet each employeeʼslife plan, and actively supporting employees to learn

Elimination of Forced Labor and Child Labor

independently.
4. Sustainability

Unitika Group companies and overseas affiliates havecontinually made declarations of their refusal to take part inany form of forced labor or child labor in violation ofinternational agreements, such as the International Covenantson Human Rights or the Convention on the Rights of theChild.
We will continue with our activities to eliminate forcedlabor and child labor, in accordance with the Unitika Human
Rights Policy we have formulated and the various international
norms we refer to.

properly in our affiliates in Japan and overseas.

6. Information disclosure

Resources

3. Work environment maintenance policy

4. Dialogue with stakeholders

human rights will facilitate work that is meaningful and humane
basic position of the SDGs and leads to gaining the support of

Utilization of Diverse Human

1. Compliance with international norms

KPIs (FY 2030 targets) of Priority Issues(Materiality)
Implementation rate of human rights-related education (entire

We believe promoting these initiatives will facilitate workthat is meaningful and humane (decent work) and correct
inequalities, which is also aligned with the basic position of
the SDGs.
* A resolution of enactment was passed at the Unitika Ltd. Boardof Directors meeting held on July 25, 2022.

Improve productivity
Improve corporate value

Foster a workplace
Support training,
Prepare a work environment
culture where areskilling,that is motivating
diversity of personnel
and other activities
and satisfying
can respect each otherfor learning
for all employees
and grow together

Group, including overseas companies):
20% (implemented once throughout the entire Group over five
* A resolution of enactment was passed at the Unitika Ltd.
Board of Directors meeting held on July 25, 2022.

45

Unitika Report 2022

years)FY 2021 actual results: 39% (domestic)

Employ, assign, and educate and train a diverse rangeof personnel

Promote a variety of work styles

Unitika Report 2022

46

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

S Relationship with Our Employees
Society

Initiatives for Promoting Diversity

Number and ratio of females at the management level(March 31, 2022 Unitika Ltd.)

Unitika set up the Diversity Promotion Group in April 2018 topromote diversity, particularly to speed up the participation of
women in the workplace. In order to promote womenʼs participationin the workplace, we feel it is critical to reform the corporate
culture. Based on this mindset, we are organizing awarenessreform training sessions for management (including officers) andtraining seminars aimed at female employees. We are striving tofoster mutual awareness through continuous training.
In the training we conduct at the time new recruits join the company
and in level-specific education, we are fostering understanding andcommunicating the need to effectively use the diversity in an
organization, by accepting and recognizing the individual differencesamong employees, in order to enhance the Unitika Groupʼspower. This includes employees who are currently child rearing or
caregiving, or who are recovering from an illness, have disabilities,
are from overseas, identify as LGBTQ+, or are young or elderly.

Employ a Diverse Range of Personnel
The Unitika Group is actively employing a diversity of personnel (including
overseas students, persons with disabilities, and the “elder employee system”

Evaluation System

Numberof people

Ratio (%)

13

4.6

Females at the management level

Number of overseas students as new employees (new graduates)
and ratio that are employed at head office (career position)(FY 2021 Unitika Ltd.)
Number of people

Foreign national overseas students(new graduates)

Female

Male

Total

1

0

1

Ratio
(%)

4.0

KPIs (FY 2030 targets) of Priority Issues(Materiality)
Ratio of women at the management level (entire Group,
including overseas companies): 20%
FY 2021 actual results: 5.9%

for rehiring retired workers), as well as employing people at various stagesof their career (mid-career recruitment and the Return Employment System).
By employing overseas students from various backgrounds, we will
be able to demonstrate the strengths of having diverse sensitivities and an

Ratio of female new recruits (career position) working at
the head office (Unitika Ltd.): 30%
FY 2021 actual results: 16%

international atmosphere, which will also help to strengthen diversity in thecompany overall. Our elder employees, who have a wealth of experience,are making use of their accumulated experience and know-how and thriving

Use of Personnel System

in a variety of our workplaces.
Also, for the employment of new graduates, as a part of our fair employment
activities, Unitika has created an original Unitika Employment Interview
Manual based on the gist of the Employment Selection Guidelines issued
by The Ministry of Health, Labour and Welfare.

Return Employment System
If a full-time employee who has been working for us for three years
or more is required to leave the company for unavoidable family
reasons (marriage, child-rearing, caregiving, work transfer of spouse,etc.), and later that situation changes and they are able to return towork, the Return Employment System gives that person a chance toConcept of Personnel System
Unitikaʼs personnel system is designed to encourage employees
to develop their careers and improve their abilities. It offers
several different educational programs to enable employees
to work on their personal growth, with a high degree of motivation
and an ambitious mindset. These programs are offeredsystematically and continuously to enable organizational
growth and boost corporate competitiveness.

come back and work for Unitika, based on the mutual desire of both

Personnel Rotation System

the individual and the company.

Number of new employees (FY 2021 Unitika Ltd.)
Number of people
FemaleNumber of new employees
Head office employees

47

7
4

Male
64
21

Total
71
25

Ratio
of females
（%）
9.9
16.0

Production site
employees

2

40

42

4.8

Mid-career recruits

1

3

4

25.0

Unitika Report 2022

Unitikaʼs personnel rotation system is designed to enablesystematic education of the human resources needed for theongoing running of organizations, in accordance with the job
level of each individual.
It is designed to enable the career development of each
employee, to create synergy among organizations, and to lead
to better business opportunities and corporate performance.
Employees self-report the positions they want to be posted
to, which are considered along with the needs of the Company.
This provides the best possible understanding of expected
employee roles and ability development goals, and enables
more effective operations.

Unitikaʼs evaluation system is designed to provide a moreaccurate understanding of the roles employees expect tooccupy, and to provide more impartial evaluations of theindividuals producing the results needed to fill those roles.
Employees are given yearly performance evaluations that rate
them based on their competency, ability, role improvement,
attainment of results, and job execution processes. They arealso given twice-yearly performance evaluations in accordancewith the Companyʼs target management system. Theseevaluations are linked to pay raises, promotions and bonuses.
The evaluation results contribute to operating an evaluation
system linked to the ability development and education of each
employee going forward, such as receiving reliable feedback
through discussions of the evaluation results with superiors, etc.

Human Resources Education
Underpinning Unitikaʼs education system is the conceptthat raising the skills standards of all our employees leads tostrengthening the organizationʼs foundations. We consider
on-the-job training (OJT), based on the career paths of
employees, as the core of human resource development.
Accordingly, we have established a system that more
efficiently provides follow-ups for early-career employees, aswell as education and support for managers. Off job training(OFF-JT) complements OJT, and enhances level-specifictraining, function-specific education, and the Global Human
Resources Education Program.
In FY 2021 we switched from face-to-face training and education
to an online format due to the COVID-19 pandemic, andcertain programs were suspended or postponed. From FY
2022, we will resume face-to-face training while taking into
consideration the effects of the COVID-19 pandemic.
Education and Training System● Training during the first 3 years at Unitika, on-the-job
training for reinforcement● Level-specific training ● Selective training● Diversity-related training● Function-specific education(for sales, technology development, and manufacturing)● Human rights training● Overseas study system for technical positions● Self-improvement support (for gaining qualifications, etc.)

Education and Training-related Results (FY 2021)
Education investment/person

29,000 yen

Training time/person

6.2 hours
4,429 people

Female1,532 peopleMale

12,166 hours

Female2,854 hours

Total training time

* Education investment/person = Total education investment /(employees at all domestic Group companies + employees posted overseas)

Creating a Pleasant Workplace
Work-Life Balance
In order to promote the balance between employeesʼ workand private lives, we have implemented “no-overtime days”
to reduce the amount of overtime, and introduced child-rearing
leave, caregiver leave, time off for sick/injured childcare, andtime off for caregivers, all exceeding legal requirements. For
employees engaged in child rearing or caregiving and who
request half-day paid leave very frequently, we have increased
the maximum to 14 times (7 days) per year. We also have asystem of shortened work hours for child-rearing. This systemallows employees with children who are aged three or older
but have not completed the third grade in elementary school
to reduce their work time by one hour. Also, we featured anarticle in the internal newsletter on “Discussion on malechild-rearing leave: Creating a corporate culture where male
employees can also easily take leave to raise their children,”in which four male employees discussed their experience
with child-rearing leave. This is one way we are encouraging
male employees to take child-rearing leave. And to further
support a variety of work styles, we are preparing a flex-timesystem for some departments, as well as promoting remote
work for those workplaces (head office, etc.) where working
from home is possible, and reducing the rate of in-office
workers. We are also working on improving our productivity,
as we aim for an average overtime of under 10 hours.
Number of employees taking child-rearing leave(Unitika Ltd. and some Group companies*)
Female
Ratio
Numbertakingof people
leave
(%)

Training Programs for Global Human Resources (Main Programs)● Overseas trainee system● Overseas business trip accompaniment system for young
employees● Assistance for taking foreign language lessons,
Recommendation for taking the TOEIC test
● Overseas-related job training (global courses, global businessskills training, global management training)● Training for supervisors at overseas offices● Training for national staff (for national staff at overseas sites)

Male
Total number of participants

FY 2017

Male
Numberof people

Ratio
taking
leave
(%)

Total
numberof people

11

92

3

6

14

FY 2018

9

100

7

15

16

FY 2019

10

91

4

8

14

FY 2020

5

100

4

11

9

FY 2021

8

100

13

31

21

* Nippon Ester Co., Ltd.; Unitika Trading Co., Ltd.; Unitika Textiles Ltd.;
Unitika Glass Fiber Co., Ltd.; Unitika Garment Technology Co., Ltd.

Unitika Report 2022

48

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

S Relationship with Our Employees
Society

Disease Prevention Measures
KPIs (FY 2030 targets) of Priority Issues (Materiality)
Rate of men taking child-rearing leave(All domestic Group companies): 50%
FY 2021 actual results: 31%(Unitika Ltd. and some Group companies*)* Nippon Ester Co., Ltd.; Unitika Trading Co., Ltd.; Unitika Textiles Ltd.;
Unitika Glass Fiber Co., Ltd.; Unitika Garment Technology Co., Ltd.

Employeesʼ Health
Unitika Health Management Declaration
The philosophy of the Unitika Group is “contributing tosociety
by connecting peopleʼ s lives and technology.”
Based on our philosophy, we are aiming to be a “company thatis continuously chosen by customers,” as is set in our long-term
vision G-STEP30. Our initiatives to continuously understand andimprove employeesʼ health condition (health management)
are an important investment that will enhance the corporate
value of the Unitika Group. Investing in health management isnecessary to become a company that is continuously chosen
by customers.
We believe these initiatives will also contribute to realizing
a sustainable society, from the perspective of ensuring a healthy
lifestyle and facilitating work that is meaningful and humane(decent work).
July 2022 Shuji Ueno, Representative Director and President,
Chief Executive Officer

Mental Health Initiatives
Based on the Ministry of Health, Labour and Welfareʼs“Guidelines for Maintaining and Improving Workersʼ Mental
Health,” we conduct mental health training both at the time
new recruits join the company and when employees arepromoted. We are actively working to promote the mental
health of our employees.
We are also conducting stress checks every year, andimplementing stress relief measures for those with a check
result of high stress levels, as a primary preventive measure
for mental health care.

Return Support Guidelines
We have established “Return Support Guidelines” to allow
those who were away for an extended period of time toreturn to work smoothly.

Lifestyle Disease Countermeasures
We conduct blood tests and electrocardiograms, outside ofwhat is required by law, at the once-a-year regular healthcheckups for employees aged under 35 years. We are also
encouraging employees to take an interest in managing theirhealth, before they become middle-aged and older.

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Unitika Report 2022

We administer influenza vaccinations to employees at eachproduction site, and take measures to prevent employees fromdeveloping influenza and having it progress into a serious case.

COVID-19 Infection Countermeasures
We are strengthening the following initiatives to prevent the
spread of COVID-19 in workplaces.
(1) Promoting telework● Reducing the rate of in-office work at workplaces (headoffice, etc.) where working from home is possible (target
telework rate of 70%)(2) Measures to prevent the spread of COVID-19 infections at
workplaces and in meetings● Ensuring employees wear masks, thoroughly wash anddisinfect their hands, and avoid the three cʼs (closed spaces,
crowded places, close contact)● Holding meetings that are well planned to include remoteparticipation, shorter times, small groups, good ventilation,and sufficient spacing between seats, etc.
(3) COVID-19 infection countermeasures for business trips andface-to-face meetings/interviews● Refraining as much as possible from business trips andface-to-face meetings/interviews at clients, and using
remote participation, etc.
● Asking employees to refrain from moving between

production sites and affiliated companies within theGroup (and when business trips and face-to-facemeetings/interviews there are unavoidable, ensuring
thorough infection prevention measures are being
practiced in these places.)

KPIs (FY 2030 targets) of Priority Issues (Materiality)
Certification as an Excellent Health Management
Corporation (Unitika Ltd. and some Group companies*):① Acquire certification ② White 500* Nippon Ester Co., Ltd.; Unitika Trading Co., Ltd.; Unitika Textiles Ltd.;
Unitika Glass Fiber Co., Ltd.; Unitika Garment Technology Co., Ltd.

Safety and Health Initiatives
At the Unitika Group, the Central Safety and Sanitation
Committee is implementing health and safety activities
aimed at eliminating accidents that require time off fromwork at all production sites and affiliates. We hold safety andsanitation managers meetings three times a year for thoseGroup employees in charge of safety and sanitation. At thesemeetings, the participants share information such as theanalysis of and measures for industrial accidents, initiatives
to address companywide issues, and movements for revisinglaws and regulations. In FY 2020, there were multiple occurrencesof industrial accidents including accidents where no worktime
was lost. In response to this, we have been conducting generalsafety inspections throughout the Group, and steadily
implementing activities to reduce the hidden causes ofaccidents in workplaces. As a result, in FY 2021 we were able toreduce the number of industrial accidents by over 60%
compared to the previous fiscal year. We are also supporting
the physical, mental, and emotional health of employees byintroducing Return Support Guidelines, and following thesituation at workplaces based on mental health checks.

Results of industrial safety and health activities
over the last 10 years
Number of employees taking leave (people)

Rate of lost work time (%)

1.34
1.23

1.25

5

5

1.01

0.96
0.77

0.38

0.49

6

5
4

2

0.26

4
2

0
0

1

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

KPIs (FY 2030 targets) of Priority Issues (Materiality)
Number of accidents causing lost work time: 0
FY 2021 actual results: 1

of such incidents. We are also actively carrying out accidents
and natural disaster training, as well as doing drills at
production sites in the spring and autumn seasons of fire
prevention activities.
Additionally, as internal standards for managing safety at
production facilities, Unitika has enacted a set of “pre-evaluation
policies” on safety sanitation and environmental effects at
new facilities. As a disaster readiness measure when creatingor renovating facilities, a total of two rigorous inspections(during design and upon completion) are carried out incompliance with these standards.
At the Tarui Plant, 133 employees participated in an integrated
disaster prevention and readiness drill on November 17,
2021. An outdoor fire hydrant water-discharge operating
drill was held on April 16 and November 19, 2021.
On September 24, 2021 we carried out fire-fighting training
using water extinguishers and fire hydrants, for the afternoon-shift
workers at Unitika Textiles Ltd.
At the Okazaki Plant, 400 employees participated in a large-scale
integrated fire prevention and disaster prevention drills on
the “Disaster Drill Day at Plants” on November 18, 2021. In
addition to evacuation drills in preparation for an earthquake,
we partnered with the head office squad and district squads
to carry out drills in preparation for a variety of crises including
the outflow of chemicals, fire breakouts, and the confinementof employees.
We set March as a fire prevention month at the Uji Plant, andon March 22, 2022, we carried out notification, contact, andevacuation drills at all production sites, in which 523 people
participated.

Preparation for Large-Scale Disasters

Disaster Prevention
and Readiness Initiatives
Disaster Prevention
and Readiness Measures
To prepare for major disasters like the earthquake andtsunami that devastated Tohoku in March 2011, disasterreadiness measures are crucial both to fulfill the basic
mission of protecting the lives of employees, as well as touphold the responsibility to stakeholders of continuingbusiness activities. In July 2021, we revised the Unitika disasterprevention and readiness measures outline, and prepared adisaster prevention and readiness system and disaster
control measures. Also on October 14, the Central Disaster
Readiness Committee held its first disaster prevention andreadiness event to make the entire company aware of theimportance of disaster prevention and readiness.

Unitika has established the Protocols for Returning Home,
which encourages employees to stay at their workplaces if
trains and other public transportation stop running due tolarge-scale disasters. This is to prevent employees from having
difficulties in returning home, and to prevent them from
obstructing the operations of police officers and fire fighters.
We are also making other preparations such as storing disasterequipment, supplies, drinking water and preserved food. We
have also established a system that allows us to handle requests
for support from local residents in surrounding neighborhoods
and for cooperation from local governments.

Disaster Readiness Training
The Unitika Group has reflected on the fire that occurred at
the Uji Plant on January 8, 2019, and we are reviewing overall
the fire prevention system and working to prevent the recurrence

Integrated ﬁre prevention and disaster prevention drills (Okazaki Plant)

Unitika Report 2022

50

Introduction

S Relationship with Our Partners
Purchasing Policy
Unitikaʼs purchasing departments will engage in transparent
and fair procurement practices that meet personal and community
standards.
They will uphold our duty as a company to engage in
responsible procurement practices, placing emphasis on CSR
activities. Under our purchasing policy, we will carry out supply
chain management initiatives with our business partners andclients.

CSR Procurement Survey
The Unitika Group has set strengthening supply chain
management as a priority issue. To do this, we will conduct a
CSR procurement survey in FY 2022, familiarize employeeswith our purchasing policy in the supply chain, and work on
improving this policy to fortify our supply chain management.

Survey targets
199 companies (total of the business partners and clients with an 80%
transaction amount in the purchasing department of Unitika Ltd.,and the business partners and clients with a 72% transaction amount

Community-focused Initiatives

ECO Kyoto 21 is a system run by Kyoto prefecture to certify
and register production sites that play a leading role inenvironmental preservation or local recycling efforts.
Unitikaʼs Uji Plant is participating in ECO Kyoto 21; in 2004,
it was certified and registered in the systemʼs Ecostylecategory for production sites and organizations engaging inhighly original environmental awareness activities.

in the purchasing department of Unitika Trading Co., Ltd.)① Legal compliance② Harmony with the environment

comply with laws and community standards, engaging in③ Improving working environments and human rights

transparent, fair procurement practices and aiming to be a

④ Product safety and quality assurance

good corporate citizen.

⑤ Setting relevant questions from chemicals management categories

2. Harmony With Environment

Plans going forward

When procuring products or services, the Company will value

We will analyze the survey results, identify supply chain-related issues,environmental awareness and the preservation of safety,

and make improvements to the supply chain. Going forward, we will

endeavoring to purchase products and raw materials of low

regularly conduct surveys to check for improvements. This is how weenvironmental impact.

will continuously run the PDCA cycle, and link it to familiarizing
employees with our purchasing policy in the supply chain.

3. Respect for Human Rights; Improving Working Environments
When engaging in purchasing activities, the Company will

PDCA cycle of supply chain management

respect human rights and ensure that all forms of prejudice are
eliminated when work is executed. The Company will make efforts

The Company will aim to create better partnerships, and ask
partners to:① Comply with legal and community standards② Work on activities to preserve the environment and to ensurewith the purchasing policy

Strengthen
supply chain
management

Identify issues➡

4. Partners (CSR Aspects)➡ Familiarize employeesMakeimprovements➡

to ensure health and safety, and to improve work environments.

Survey➡

safety③ Respect human rights; value efforts to improve working
environments

Participation in Declaration of Biodiversity
Unitika has endorsed the Declaration of Biodiversity
released by Keidanren (Japan Business Federation) in 2009,and is partnering with it in promoting the declaration. The
declaration contains seven principles covering areas such as
harmonizing business activities with natural cycles, andpromoting businesses oriented to these cycles. Unitikaʼs businessactivities are designed with an awareness of biodiversity.

Unitika no Mori ("Forest of Unitika") Project

Survey contents

When executing purchasing activities, the Company will

Initiatives for Preserving
the Environment and Biodiversity

ECO Kyoto 21

174 companies (87.4% response rate)

1. Legal Compliance

Financial andCorporate Information

Society

Number of respondents
Purchasing Policy

ESG

S Contributing to the Community and the Environment

Society

Supply Chain Management Initiatives

Value Creation
Strategy

Participation in Local Beautiﬁcation Activities
As part of their efforts to give back to the community,
Unitika production sites actively take part in environmental
beautification drives to clean up their surroundings.
At the Okazaki Plant, every second Thursday of the montharound 70 employees take part each time in cleaning up thesurrounding area.
At the Uji Plant, employees take part in cleaning up thesurrounding area through Clean Uji Initiative. During FY 2021,
this initiative was held twice in the year due to the impact of
COVID-19 infections; a total of 576 employees participated.
At Unitika Textiles Ltd., each year the company partners
with the unions during the annual union events to carry out
cleaning activities and strawberry picking in the local area.
However, this event was suspended in FY 2021 as well due tothe impact of COVID-19 infections, and instead in April theemployees cleaned up the ditches surrounding the plant andpruned the cherry blossom trees to prevent falling leaves.
On May 31, 2021, the Sakoshi Plant and Ako Unitech Service
Co., Ltd. carried out combined cleaning of the embankment
areas from the front gate of the production sites.

Unitikaʼs labor union, Unitika Union, established a volunteer
fund in 1992 to develop a variety of domestic and international
support activities. As a project that commemorates its 30th
anniversary in 2003, Unitika Union started the Midori no Plan(”Green Plan”) with the purpose of social contribution andenvironmental protection in Japan. For the 20-year Midori noPlan, we planted Japanese chestnut oaks, konara oaks andJapanese cypresses in a 2-hectare area (approximately 2.5 acres)of mountain forest that has been named Unitika no Mori, locatedin Hidakagawa Town, Wakayama Prefecture. Several times a year,
Unitika employees visit the site to maintain the forest by clearing
underbrush and pruning branches. These activities have been
officially recognized by Wakayama Prefecture as “an effort that
contributes to CO2 absorption through forestation.” It is expected
to result in about 800 metric tons of carbon dioxide absorption in
100 years.
Unitika no Mori was the first “corporate forest” in Wakayama,
which was a pioneer nationwide in the establishment of suchcorporate forests. Unitika no Mori has received high praise for not
only its woodland preservation activities but also its contributions
to revitalizing the local region by such activities as continuousinteraction with the local people. In 2018 it was awarded the
Wakayama Prefecture Greening Achievement Award.
Continuing on from the previous year, as a precaution to preventthe spread of COVID-19 infections, the Midori no Plan was not
carried out in FY 2021. So far though, over 500 people haveparticipated in this project, and we plan to continue it well into the
future, from the 21st year onwards, as a lasting activity.

④ Endeavor to ensure appropriate quality/prices and reliably
on-time delivery, and to maintain and improve products andservices⑤ Abide by our chemicals management guidelines
Additionally, cooperate in surveys and reports related to them

KPIs (FY 2030 targets) of Priority Issues (Materiality)
Response rate of CSR procurement survey(Main business partners and clients): 80%
FY 2022 actual results: 87.4%

Cleaning activities in the areas
around the Sakoshi Plant
and Ako Unitech Service Co., Ltd.

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Unitika Report 2022

Group photo at the FY 2019 Midori no Plan event

Unitika Report 2022

52

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

G Corporate Governance
GovernanceCorporate GovernanceWe divide the decision making and management supervisory(governance) functions of the Board of Directors and thebusiness execution functions of the executive officers. In orderto enhance the mobility and effectiveness of the management,
we promote cooperation between the directors and theexecutive officers, while most of the directors also serve as
the executive officers with some exceptions.
We believe that our governance system is functioning as
expected by means of the establishment of a voluntarycommittee, an executive officer system, outside directors,
and an auditor system.

Basic Policies
At Unitika, we carry out business activities as we strive to be acompany that is continuously chosen by customers, under ourphilosophy of contributing to society by connecting peopleʼs lives
and technology. We have worked to achieve stakeholder-focusedmanagement by pursuing stakeholder strategies that include theenhancement of legal compliance and risk management, the timely
and appropriate disclosure of information, and the implementationof rapid decision making. We believe this will enable Unitika tomaximize corporate value in an increasingly global environment,
and continue to grow.

knowledge to provide objective recommendations; this enhances
the transparency and integrity of management.
The auditors (Kazuki Oka, Shigeru Sugisawa, Tetsuaki Fukuhara(outside auditor), Sumitaka Maruyama (outside auditor)) attend

the Board of Directors meetings so that they can speak up andcheck the decision-making process of management. The Board of
Directors meetings are held once a month, and also on an ad-hoc
basis as required.

Board of Directors
Ratio of outside directors

Ratio of female directors

Ratio of outside officers

Board of Directors
Outside directors: 37.5%(3 out of 8)

The Unitika Board of Directors is composed of eight directors:
Representative Director Chairman Hiroyuki Shime (chairman),
Shuji Ueno, Eiji Sumi, Masakazu Kitano, Tsunetoshi Matsuda,
Minoru Furukawa (outside director), Michihiko Ota (outside
director), Noriko Ishikawa (outside director). The outside
directors apply their respective extensive experience and broad

Structural Overview
Under the Companies Act, Unitika has adopted the system of
a company with a Board of Auditors, and put in place auditors.
We have also introduced a voluntary executive officer system.

Female directors: 12.5%(1 out of 8)

Outside officers: 41.7%(5 out of 12)

Governance organizational chart

General Meeting of Shareholders

Skills matrix

Appointment/Dismissal

Nominating
Committee
Remuneration
Committee* 5 members(Outside Directors: 3)

Consultation

Decisionand Supervision

Appointment/
Dismissal

Board of Directors

Board of Auditors* 8 Directors (Outside Directors: 3)

ReportAppointment/Dismissal/
Supervision

Appointment/
Dismissal

AuditsName

Positionin the Company

Type* 4 Auditors(Outside Auditors: 2)

Corporate
management

Sales

Finance

Management
planning

MarketingAccounting

●

Legal
Risk
management

R&D
GlobalManufacturing

Deliberation/Report

Hiroyuki
Shime

Representative Director
Chairman

●

Shuji
Ueno

Representative Director
and President,
Chief Executive Officer

●

Eiji
Sumi

Director,
Managing Executive Officer

Masakazu
KitanoDirector,
Senior Executive Officer

Tsunetoshi
MatsudaDirector,
Senior Executive Officer

ReportMinoruFurukawa

Director

Outside,Independent●

Executive Officers (11)Michihiko
Ota

Director

Outside,Independent●

NorikoIshikawa

Director

Outside,Independent

Instructions

Representative Director(Chairman, President)
Report

Audit
OfficeCooperation
ReportCooperation

Management meeting

JudgmentofappropriatenessBusiness execution meeting
Accounting audits
and Internal control audits

Main Committees

AuditsSustainability, Risk management, Compliance,
Quality assurance, Export management,
Information security, Central disaster readinessBusiness execution

Business
execution

Skills and experience* In addition, 4 directors serve as executive officers

Each division

Group companies

Sustainability
Human
resourcesandpersonnel
development

●
●
●

●
●

●
●

●

Accounting Auditor

Audits

●

●
●

●
●
●
●

●

●
●

(Note) The table listed above is not a comprehensive listing of the full range of skills and experience the directors have.

53

Unitika Report 2022

Unitika Report 2022

54

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

G Corporate Governance
Governance

Board of Auditors
The Unitika Board of Auditors is composed of four
auditors: Kazuki Oka (chairman), Shigeru Sugisawa,
Tetsuaki Fukuhara (outside auditor), and Sumitaka
Maruyama (outside auditor). These auditors audit andmonitor management, such as the management policies,
execution of business operations, and preservation ofproperty in accordance with standards including therelevant laws and regulations, the Unitika Articles ofIncorporation, and provisions, etc.

Nominating Committee /Remuneration Committee
The Unitika Nominating Committee and Remuneration
Committee are each composed of five directors: Minoru
Furukawa (outside director) as Committee Chairman, andHiroyuki Shime, Shuji Ueno, Michihiko Ota (outside
director), and Noriko Ishikawa (outside director). These
committees deliberate matters concerning the appointment
and remuneration of management (executive officers) andthe nomination of candidates for directors and auditors, andthen report their recommendations to the Board of
Directors (for auditor candidates, after approval from theBoard of Auditors). This is how these committees areworking to ensure the integrity and improve thetransparency of matters related to executive officers anddetermining their remuneration.
Record of main meetings held and attendance
Meeting

Number of times held

Board of Director
Board of Auditors
Nominating Committee
Remuneration Committee

16
13
3
2

Rate of attendance of outside directors
at the Board of Directors meeting

98%

Rate of attendance of outside auditors
at the Board of Directors meeting

94%

Rate of attendance of outside auditors
at the Board of Auditors meeting

96%

Evaluating the Effectivenessof the Board of Directors
In March 2021, Unitika conducted a survey with therecommendations of external institutions on all directors

55

Unitika Report 2022

and auditors comprising the Board of Directors. We thenanalyzed and evaluated the Board of Directors, taking into
consideration the tallied results from the external
institutions.
The results were generally a positive evaluation of thecomposition, operation, management, supervision, andother functions of the Board of Directors. Subsequently, we
have evaluated the Board of Directors to be effective
overall. There has also been a notable improvement in theitems identified in the previous survey as having scope forfurther review and improvement, including having morediversity among the Board of Directorsʼ members,enhancing the documents and materials for agenda items,
and creating opportunities to further strengthencommunication between members. This yearʼ s survey also
indicated the need for discussion on topics such as further
strengthening the functions of the Unitika Groupʼ s overall
internal control systems, training successors, andmanagement strategies based on ESG and SDGs, etc. We
will review these views, and continue working on improving
the effectiveness of the Board of Directors.

Remuneration of Executive Officers
All Unitika executive officers are remunerated in cash
payments. Excluding outside directors and auditors, thesepayments to executive officers are comprised of
position-specific fixed remuneration andperformance-linked remuneration as an incentive. Outside
directors and auditors only receive fixed remuneration.
The remuneration of Unitika executive officers isdetermined via consultation with the voluntary
Remuneration Committee, which has an independent
outside director as the Committee Chairman and is set up as
an advisory institution of the Board of Directors. The
remuneration of directors is determined by the Board of
Directors, and the remuneration of auditors is determinedby the Board of Auditors. When determining the level of
remuneration for executive officers, we also refer to surveys
and other data from external third-party institutions, andtake into consideration the views, etc. of outside officers in
the Remuneration Committee. The remuneration isappropriately determined within the maximum limit ofexecutive officer remuneration (within 40 million yen permonth for directors and within 6 million yen per month forauditors), as stipulated at the Annual General Meeting of
Shareholders (June 28, 1990).
Unitikaʼs performance-linked remuneration system targets
achieving the medium-term management plan as a strong
motivator. It was introduced for executive officers excluding
outside directors and auditors, and calculates remuneration
based on an evaluation of the achievement rate according
to the current fiscal yearʼs results for the medium-term

management planʼ s revenue target values. The ratio of
performance-linked remuneration has been roughly set ataround 10% of the position-specific fixed remuneration as astandard level. The evaluation of the achievement rate
related to the revenue that is the base for calculating the
remuneration is set using a certain weight assigned toconsolidated net sales, operating profit, and net profit. Also,
the evaluation for calculating the performance-linked
remuneration is determined via consultation with theRemuneration Committee.

outside the company.
Furthermore, we have stipulated the Unitika Group Charterof Corporate Behavior, and are distributing and establishing
the Unitika Group Code of Conduct as specific action
standards for all officers and employees of the Group. We
are also promoting compliance such as by conducting
timely training with the Risk Management Office, andthrough electronic-based education (e-learning) using theinternet.

Details of remuneration of executive officers
Class-specific total (million yen）

Category

Totalofexecutive officers(million yen)

Directors(excluding outside
directors): 6

155

142

12

Auditors(excluding outside
auditors): 2

36

36

0

Outside officers: 5

37

37

0

Fixed
Performance-linked
remuneration
remuneration

The above figures include one director who retired upon the conclusionof the 211th Annual General Meeting of Shareholders held on June 29, 2021.

Unitikaʼ s Basic Policy for Internal Control（Item Headings）
1. Organization to ensure that the execution of j ob duties bydirectors and employees complies with all applicable legislationand the Articles of Incorporation
2. Items pertaining to saving/managing information on directorsʼ
execution of job duties
3. Regulations on loss hazard management; other organizational
elements
4. Organization to ensure that execution of directorsʼ job duties
is performed efficiently

Internal Control System
Basic Policies
Under the Companies Act, Ordinance for Enforcement of
the Companies Act and Financial Instruments andExchange Act, Unitika has created a system that ensures theadequate operation of our company and group, as well as
the trustworthiness of our financial reports, as follows.

5. Organization to ensure suitability of operations done bycorporate groups
6. Items pertaining to ensuring the effectiveness of instructions
to employees, and to their independence from directors,
when auditors ask for the appointment of those employees toact as assistants
7. Organization for making a report to the auditors, and anorganization that ensures the fair treatment of people who
make a report to the auditors

Structural Overview
8. Items regarding the procedures for the advanced payment or

The Internal Control System stipulates the Unitikaʼ s Basic
Policy for Internal Control based on Companies Act and the
Financial Instruments and Exchange Act. Internal controls
for financial reporting are dealt with mainly at the Audit
Office, while internal controls regarding offices are set up at
our key business branches in order to establish thecorporate framework for internal controls. Also, in addition
to collecting information within the company and theGroup, which is mainly done by the Risk Management
Office, we also have systems in place to enable a timely
response to matters, including setting up a Compliance
Committee and whistleblower contact points within andreimbursement of the expenses arising from the performanceof duties of the auditors or the policies regarding the processingof other expenses or debts arising from the performance of
duties of the auditors
9. Other organizational elements to ensure that auditing byauditors is performed effectively

Unitika Report 2022

56

Introduction

G CSR Management
As the demands and requests from society expand, theweight of the CSR (corporate social responsibility) weshould fulfill is also increasing. Unitika is striving to fulfill
our CSR, and meet the expectations of our various
stakeholders.
We have set up various committees in each area including
compliance, risk management, safety and sanitation, theenvironment, and information security in order toproactively conduct activities in respective areas. In thesecommittees, we deliberate policies (including giving
instructions and guidance on important matters) andmonitor the situation regarding the permeation of thesepolicies, as well as share information on responses to issues
and problems that arise, and actively roll out activities toother areas in Unitika.

Environment, Health,and Safety (EHS) Management
Unitikaʼ s Environment Committee and Central Safety andSanitation Committee are organizations created to oversee
environmental management, and health and safety management.
The Environment Committeeʼ s main functions are examining
basic plans on environmentally-aware businesses andverifying their progress, discussing reports of results ofenvironmental audits of production sites and Group
companies done by the committee secretary, and discussing
other major items related to the environment. The Central
Safety and Sanitation Committee discusses measures toprevent work-related accidents and other accidents anddisasters, and discusses other major items related to healthand safety.
These two committees are higher-level organizations thatoversee the Environmental Safety Groups of individual
Unitika production sites and Group companies. They play
an important role in specifying and compiling Group
policies, when lower-level organizations propose andimplement measures reflecting their own unique
circumstances.

Export Control

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Unitika Report 2022

Financial andCorporate Information

GovernanceUnitikaʼ s regulations have been registered in the CP of the
Ministry of Economy, Trade and Industry (METI) since 1988.
The committee administration supervises the situation
through audits and other means, while checking themanagement status in each division. In order to respond to
the Deemed Export Control enacted in May 2022, thecommittee administration also provides explanations torelevant persons within the company, revises provisions,and takes other actions to ensure a thorough response in
all areas. We are also carrying out individual training ineach division, as well as training for those 27 employees
promoted to the position of person in charge and otheractivities as a part of our education for employees. In FY
2021, we bolstered our management system by inviting
external experts to educate export control managers on theForeign Exchange and Foreign Trade Act and how toprevent the leaking of Unitika technologies.

On April 1, 2020, we revised each document as the Unitika
Group Charter of Corporate Behavior and the Unitika Group
Code of Conduct. We are distributing a Code of Conduct
booklet to all executive officers and employees in the
Unitika Group (as well as a card-sized portable version thatcan be referred to at all times), and promoting compliancewith the Code of Conduct.
Each year we carry out compliance training during thetraining for new employees and all employees who havebeen promoted. We are also working to ensure that all
employees are aware of compliance and that it is firmly
established, such as by creating opportunities for electronic
learning using the internet (e-learning).

Information Security Management
Unitika has established a management and operation
system centered around the Information Security Committee.
This system was set up to prepare and implement measures
to prevent and respond to information security incidents, aswell as protect the Unitika Groupʼ s information assets byeducating and raising awareness of information security.
Regarding the protection of personal information, Unitika
handles this in accordance with the laws and regulations, suchas inspecting the information held and how it is handled, andtaking comprehensive measures for security management. Also,
to respond to the rising risks and threats of cyber-attacks,
we have been continuously using a vulnerabilities diagnostic
service provided by a specialist institution, andimplementing Group-wide countermeasures includingin the supply chain and at production sites in Japan andoverseas.
Unitika also strives to prevent accidents in our daily business
operations through the enhancement of security tools against
new threats and risks, including targeted attacks, and byraising awareness through training and the education of
all Unitika Group employees.

Unitika Group Charterof Corporate Behavior

Front cover of the Unitika Group Codeof Conduct

Whistleblower Contact Points
Unitika has enacted the Whistleblower Protection Regulations,which specify provisions to protect whistleblower privacy
and prohibit prejudicial treatment of them for making areport. We have set up two reporting contact points (oneinside and one outside the Company) to enable employees
to immediately report any dishonest or illegal conduct they
become aware of. We respond in a timely and appropriate manner
to any consultations or notifications of such conduct.
We are exhaustively ensuring compliance throughout theGroup, mainly through the Compliance Committee chairedby the Chief Compliance Officer.
Unitikaʼs whistleblower contact points

Contact point ①

Contact point ②

UnitikaCompliance Lin

External Legal
Help Line● Contact point:
Risk Management Office● Contact point: Attorney

Notification
Consultation

In the Unitika Group, export control managers appointed
at our business sectors and Group companies carry out the
management of daily export operations under the Export
Control Committee, based on the Export Control Regulations.

ESG

G Compliance

Governance

CSR Promotion System

Value Creation
Strategy

In 1998, the Unitika Group created the Unitika Charter ofCorporate Behavior, a document that sets forth the basic
action policy needed to fulfill our mission in society, and in2001 we issued the first edition of the Unitika Action Standards.

Feedback

ReportInstructions

ReportInstructions

Compliance Committee

Harassment Consultation Services
We have set up a help desk at each office and Group
companies regarding harassment at work, such as sexual
harassment, power harassment, harassment in relation topregnancy, childbirth, parenting and nursing care including
maternity harassment, in order to detect and resolve
harassment at an early stage.
The Guidelines Regarding the Prevention of Human
Rights Violation such as Harassment at Unitika Group wasestablished in 2012, and was revised in December 2016. As
we broadly strive toward the prevention of harassment andthe establishment of a workplace where all our employees
can work comfortably, we have added the statements thatsexual harassment cannot be allowed regardless of thevictimʼ s sexual orientation and gender i dentity, andt h at it is considered as sexual harassment if there is any
nonconsensual sexual statements or action, even if it isbetween people of the same sex.

Risk Management System
We have set up a risk management system in the Unitika
Group under the Risk Management Committee and inaccordance with the Risk Management Regulations. With
this system, we are ensuring the continuity of the Group by
preventing the occurrence of risks and minimizing the loss
and damage incurred when risks occur.
The Risk Management Committee organizes countermeasures
for risks that the entire Unitika Group should be ready for andrisks that have a substantial impact on business operations.
It inspects the progress status of these countermeasures,and considers and deliberates on matters associated withthe danger of loss and damages being incurred by the
Unitika Group, such as investigating the causes of risks
occurring and considering ways to prevent their recurrence.
The risk management managers in each business andmanagement sectors and Group companies have overall
control of risk management in their own sector/company.
The Chief Risk Management Officer, who is also the Chairmanof the Risk Management Committee, has overall control ofrisk management for the entire Group, under the directionof the Unitika President.

Feedback
Notification
Consultation

All employees working for the Unitika Group

Unitika Report 2022

58

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

G Directors and Auditors
GovernanceDirectors
Hiroyuki Shime

Shuji Ueno

Eiji Sumi

Masakazu Kitano

Representative Director Chairman

Representative Director
and President, Chief Executive Oﬃcer,
Responsible for the Audit Oﬃce

Director, Managing Executive Oﬃcer,
General Manager
of Administration Division

Apr. 1983 Joined the Company

Apr. 1984 Joined The Sanwa Bank, Limited (now MUFG Bank, Ltd.)
June 2013 Executive Oﬃcer, Managing Director Head of
Global Compliance Division of the Bank ofTokyo-Mitsubishi UFJ, Ltd. (now MUFG Bank, Ltd.),
and Executive Oﬃcer,
Managing Director of Global Compliance Division of
Mitsubishi UFJ Financial Group
June 2015 Director and Senior Managing Executive Oﬃcer of
Mitsubishi UFJ Research and Consulting Co., Ltd.
Apr. 2020 Advisor to the Company (full-time)
June 2020 Director, Managing Executive Oﬃcer,
General Manager of Administration Division (present)

Director, Senior Executive Oﬃcer,
General Manager ofTechnology Development Division,and General Manager of
Production Management Division

Apr. 1975 Joined the Company
June 2008 Director, Senior Executive Oﬃcer
July 2012 Director, Managing Executive Oﬃcer
June 2014 Representative Director and President,
Chief Executive Oﬃcer
June 2019 Representative Director Chairman (present)
June 2022 Outside Auditor of DAIHEN Corporation (present)

June 2012 Director, Executive Oﬃcer
July 2012 Director, Senior Executive Oﬃcer
Apr. 2015 Director, Managing Executive Oﬃcer
June 2015 Representative Director, Managing Executive Oﬃcer
June 2019 Representative Director and President, Chief Executive Oﬃcer (present)

Apr. 1985 Joined the Company
Aug. 2007 Manager of Technology Department of
Okazaki Plant, Nippon Ester Co., Ltd.
July 2013 General Manager of Okazaki Plant of the Company,
and Representative Director and President of
Nippon Ester Co., Ltd.
Apr. 2015 Executive Oﬃcer, General Manager ofTechnology Development Division, and Manager ofTechnology Development & Planning Oﬃce
Apr. 2017 Executive Oﬃcer, General Manager
of Technology Development Division,and Manager of Technology Development & Planning Oﬃce,
and General Manager of Research & Development Center
Apr. 2018 Senior Executive Oﬃcer, Deputy General Manager ofTechnology Development Division, and General Manager ofResearch & Development Center
Apr. 2019 Senior Executive Oﬃcer,
General Manager of Technology Development Division,and General Manager of Research & Development Center
Apr. 2020 Managing Executive Oﬃcer, General Manager ofTechnology Development Division, and Manager ofTechnology Development & Planning Oﬃce
Apr. 2021 Managing Executive Oﬃcer, General Manager ofTechnology Development Division, and Manager ofTechnology Development & Planning Oﬃce,
Responsible for Supervising Production
June 2021 Director, Senior Executive Oﬃcer, General Manager ofTechnology Development Division, and Manager ofTechnology Development & Planning Oﬃce, Responsible
for Supervising Production
Apr. 2022 Director, Senior Executive Oﬃcer, General Manager ofTechnology Development Division, and General Manager of
Production Management Division (present)

Tsunetoshi Matsuda

Minoru Furukawa

Michihiko Ota

Director, Senior Executive Oﬃcer,
General Manager of Polymers Sector,
Responsible for Global Business
Promotion Division,
Stationed in Tokyo

Director (part-time)

Director (part-time)

Apr. 1966 Joined Hitachi Zosen Corporation

Apr. 1986 Joined the Company
Oct. 2005 Manager of Films Quality Assurance Department ofFilms Sector
Jan. 2009 Manager of Films Production Department of Films Sector
June 2014 Manager of Technology Development & Planning Oﬃce ofTechnology Development Division
Apr. 2015 General Manager of Research & Development Centerof Technology Development Division
Apr. 2016 Executive Oﬃcer, General Manager of Research &Development Center of Technology Development Division
Apr. 2017 Executive Oﬃcer, Manager of Films Division
Apr. 2019 Executive Oﬃcer, Manager of Plastics Division
Apr. 2020 Senior Executive Oﬃcer, Manager of Plastics Division
Apr. 2021 Senior Executive Oﬃcer, General Manager of Polymers Sector,
Responsible for Global Business Promotion Division,
Stationed in Tokyo
June 2021 Director, Senior Executive Oﬃcer, General Manager ofPolymers Sector, Responsible
for Global Business Promotion Division,
Stationed in Tokyo (present)

Apr. 2013 Representative Director, Chairman and

Apr. 1975 Joined Marubeni Corporation
Apr. 2012 Senior Executive Vice President of Marubeni Corporation
Apr. 2013 Senior Executive Vice President, Regional COO for ASEAN,
Regional CEO for East Asia, Regional COO for Southwest
Asia of Marubeni Corporation, Managing Director,
Marubeni ASEAN Pte. Ltd.
June 2014 Senior Executive Vice President of Marubeni Corporation
Apr. 2015 Vice Chairman of Marubeni Corporation
June 2016 Outside Board Member of XEBIO Holdings Co., Ltd. (present)
June 2017 Outside Corporate Auditor of Saison Automobile &Fire Insurance Co., Ltd. (present)
Mar. 2018 Outside Director of OYO Corporation (present）
June 2019 Director of the Company (present)

Kazuki Oka

Shigeru Sugisawa

Tetsuaki Fukuhara

Auditor (full-time)

Auditor (full-time)

Auditor (part-time)

Auditor (part-time)

Apr. 1983 Joined the Company
Oct. 2002 General Manager of Administrative Department,
Films Division
July 2011 Deputy General Manager of Corporate Planning
Division
July 2012 Deputy General Manager of Corporate Planning Division,and General Manager of Global Strategy Promotion
Department, and General Manager ofPolymerization Administrative Department
June 2014 Executive Oﬃcer, General Manager of
Global Strategy Promotion Department,
and General Manager of Polymerization Administrative
Department
Apr. 2018 Executive Oﬃcer,
General Manager of Global Business Promotion Division
Apr. 2019 Advisor
June 2019 Auditor (present)

Apr. 1985 Joined the Company
May 2009 General Manager of Environment System Design &Construction Department, Environment & Engineering Division
June 2010 General Manager of Environment Engineering Department,
Environment & Engineering Division
July 2012 General Manager of Corporate Control Department,
Corporate Planning Division
Apr. 2015 Deputy General Manager of Corporate Planning Department,
Corporate Planning Division
Apr. 2017 General Manager of Corporate Planning Department,
Corporate Planning Division
Apr. 2020 Executive Oﬃcer, General Manager
of Corporate Planning Department
July 2020 Executive Oﬃcer, General Manager
of Corporate Management Division and General Manager ofLegal Aﬀairs Oﬃce
July 2021 Executive Oﬃcer, General Manager ofCorporate Management Division
Apr. 2022 Advisor (full-time)
June 2022 Auditor (present)

Apr. 1977 Registration as an Attorney (Osaka Bar Association)
Joined Kuboi & Partners Law Oﬃce
Apr. 1986 Opened Meiwa Law Oﬃce
Apr. 2003 Opened Mizuki Law Oﬃce
Apr. 2013 Chairman of Osaka Bar Association
June 2017 Auditor of the Company (present)

July 2008 Head of Nishinari Tax Oﬃce
July 2009 Manager of Personnel Section 2,
General Aﬀairs Department,
Osaka Regional Taxation Bureau
July 2014 Assistant Manager of Taxation Department 1,
Osaka Regional Taxation Bureau
July 2015 Manager of Taxation Department 1,
Osaka Regional Taxation Bureau
Aug. 2016 Registration as a Certiﬁed Tax Accountant
June 2019 Outside Auditor of Nippon Shinyaku Co., Ltd. (present)
June 2019 Auditor of the Company (present)

Apr. 2005 Representative Director,
President of Hitachi Zosen Corporation
June 2010 Representative Director, Chairman and President of
Hitachi Zosen Corporation
Chief Executive Oﬃcer of Hitachi Zosen Corporation
Apr. 2016 Representative Director,
Chairman of Hitachi Zosen Corporation
June 2016 Outside Director of the Senshu Ikeda Bank, Ltd.
Apr. 2017 Director, Advisor of Hitachi Zosen Corporation

Noriko Ishikawa
Director (part-time)

June 2017 Outside Director of Senshu Ikeda Holdings, Inc. (present)
June 2017 Non-Executive Director of the Senshu Ikeda Bank, Ltd.

Apr. 2004 Lecturer at the Research Institute for Economics andBusiness Administration, Kobe University
Apr. 2005 COE researcher at the Department of Natural Science ofGraduate School of Engineering, Kobe University
Apr. 2007 Specially-appointed lecturer at the Faculty of Economics,
Kinki University
Apr. 2009 Lecturer at the Faculty of Economics, Kinki University
Apr. 2010 Associate Professor at the Department of Economics,
Faculty of Economics, Konan University
Apr. 2016 Professor at the Department of Economics,
Faculty of Economics, Konan University (present)
June 2021 Director of the Company (present)(present)
June 2017 Director of the Company (present)
June 2018 Outside Director of OKK Corporation (present)

Auditors

59

Unitika Report 2022

Sumitaka Maruyama

Unitika Report 2022

60

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

10-year Financial Summary

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

Operating Results:
Net sales(100 million yen)

1,601.9

1,626.9

1,591.3

1,464.7

1,262.2

1,283.9

1,291.0

1,195.4

1,103.8

1,147.1

Operating proﬁt(100 million yen)

55.2

68.0

89.2

104.5

125.4

116.6

81.4

54.7

60.2

60.1

(％)

3.4

4.2

5.6

7.1

9.9

9.1

6.3

4.6

5.5

5.2

(100 million yen)

38.5

47.1

76.8

68.2

104.8

99.7

70.9

31.5

53.8

64.0

Proﬁt attributable to owners of parent (100 million yen)

△ 108.8

5.8△ 270.3

69.3

73.9

80.8

52.3

△ 21.6

38.6

22.2

(％)

110.0

117.4

136.3

150.1

168.3

161.1

126.3

102.3

105.4

106.8

Total assets(100 million yen)

2,550.5

2,541.8

2,358.8

2,199.6

2,118.7

2,014.5

1,990.9

1,937.3

1,904.0

1,914.0

Net assets(100 million yen)

213.2

193.7

315.9

379.4

452.6

407.3

413.5

389.3

411.9

430.7

Shareholdersʼ equity(100 million yen)

178.1

155.4

283.5

346.0

418.4

371.7

378.7

354.8

394.8

413.0

(％)

7.0

6.1

12.0

15.7

19.7

18.4

19.0

18.3

20.7

21.6

(times)

9.4

10.6

4.7

3.7

2.6

2.8

2.7

2.8

2.5

2.3

(100 million yen)

1,665.2

1,645.5

1,339.0

1,263.3

1,093.3

1,052.5

1,026.0

996.0

968.0

938.9

Cash ﬂow from operating activities (100 million yen)

160.4

68.4

60.8

116.6

181.1

97.4

89.9

98.0

148.7

86.7

Cash ﬂow from investing activities (100 million yen)

△ 44.0△ 41.0

△ 1.5

41.2

△ 41.6△ 32.3△ 64.4△101.9△ 61.7△ 89.9(100 million yen)

116.4

27.4

59.4

157.9

139.5

65.1

25.4

△ 4.0

87.0

△ 3.2

Cash ﬂow from ﬁnancing activities (100 million yen))△ 74.3△ 30.558.7△ 50.1△ 190.9△ 172.1△ 65.2△ 34.8△ 41.4△ 42.1

Capital investment(100 million yen)

61.0

50.0

48.1

59.7

48.3

41.3

60.7

93.2

73.9

76.1

Depreciation(100 million yen)

54.8

49.4

47.2

45.6

42.9

44.5

44.8

47.7

45.2

46.7

R&D expenditures(100 million yen)

43.5

38.8

39.4

32.0

31.4

32.7

34.7

36.2

36.4

36.0

Net income per share(yen)△ 188.7

10.1△ 468.7

102.9

110.8

133.3

85.2

△ 43.061.4

33.3

Net assets per share

(yen)

308.8

269.4

△ 170.1△ 67.6

58.0

160.8

229.9

188.4

257.7

303.6

(％)

2.2

2.7

3.8

4.8

5.9

5.8

4.1

2.8

3.2

3.1

(People)

4,534

4,513

4,458

3,906

3,671

3,677

3,497

3,438

3,007

3,037

Operating proﬁt margin
Ordinary proﬁt

EBITDA

Financial Condition:

Capital adequacy ratio
D/E ratio
Interest-bearing liabilities

Cash Flow, Investing, Other:

Free cash ﬂow

Per Share Indices, Other Indices:

Operating ROA
Number of employees

Notes
A reverse split (10:1) was implemented on October 1, 2017.“Net income per share” and “Net assets per share” arecalculated based on the assumption of said reverse split at the start of the period for FY 2011.

61

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62

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Company Overview
As of March 31, 2022

Unitika Ltd.

Research Laboratory and Production Sites

https://www.unitika.co.jp

FoundedJune 19, 1889

Capital Stock

100,450,000 yen

Outline ofMain Businesses

Polymers

Overseas Afﬁliate Companies

Research &Development Center23 Uji-Kozakura, Uji-shi, Kyoto 611-0021 JapanUji Plant

5 Uji-Tonouchi, Uji-shi, Kyoto 611-8555 Japan

P.T. Emblem Asia

Tel.: +81-774-25-2029

Business: Manufacture and sales of nylon ﬁlms

4-1 Hinakita-machi, Okazaki-shi, Aichi 444-8511 Japan

Unitika (Hong Kong) Ltd.

Unitika (Beijing) Trading Co., Ltd.

Tel.: +81-564-23-2311

Business: Import, export, domestic and overseas sales of mainly resin-related products

Business: Manufacturing-oriented trading company in China

Location: Hong Kong

Establishment: 2002

Polymers

Tel.: +81-774-25-2214

P.T. Unitex
Location: Indonesia

Establishment: 1995

Okazaki Plant

Resins (nylon, polyester, polyarylate),
Biodegradable materials

Tarui Plant

Location: Indonesia

Establishment: 1971

Tel.: +81-584-22-1201

Nonwoven fabrics (polyester spunbond, cotton spunlace),

Establishment: 1974

Location: China

2210 Tarui-cho, Fuwa-gun, Gifu 503-2121 Japan

Performance Materials
Sakoshi Plant

846 Kono, Ako-shi, Hyogo 678-0171 Japan

Activated carbon ﬁbers, Glass ﬁbers, Glass beads,

Tel.: +81-791-48-8185

UNITIKA ADVANCE (THAILAND) CO., Ltd.

UNITIKA TRADING VIETNAM Co.,Ltd

Business: Import, export, domestic and overseas sales of mainly resin-related products

Business: Import, export, domestic and overseas sales, consulting

Location: Thailand

Establishment: 2013

Establishment: 2017

Industrial ﬁbers

Location: Vietnam

P.T. Unitika Trading Indonesia
Performance Materials

Fibers & Textiles

Business: Import, export, domestic and overseas sales

Thai Unitika Spunbond Co., Ltd.
Business: Manufacture and sales of polyester spunbond

Location: Thailand

Trading Companies

Establishment: 1997

Other businesses

Location: Indonesia

Establishment: 2014

Overseas Ofﬁces and Satellite Ofﬁces

Fibers and textiles (polyester)

New York Ofﬁce
445 Hamilton Avenue, Suite 403, White Plains,

Plants, Technology exports

Unitika America Corporation

Fibers & Textiles

Business: Import and export

NY 10601, USA
Head Ofﬁce

Business: Spinning

Films (nylon, polyester),

Location: America

Establishment: 1973

Brazcot Ltda.

Osaka Head Ofﬁce

Business: Agriculture and forestry (natural rubber)

Osaka Center Bldg., 4-1-3 Kyutaro-machi, Chuo-ku,

Location: Brazil

Osaka 541-8566 Japan
Tel.: +81-6-6281-5695

UNITIKA (SHANGHAI) LTD.
Business: Import and export

Establishment: 1936

Location: China

Unitika do Brasil Industria Textil Ltda.

UNITIKA EUROPE GmbHBusiness: Cotton spinning

Business: Import and export

Location: Brazil

Establishment: 1958

Establishment: 2004

Location: Germany

Establishment: 2020

Tokyo Head Ofﬁce
Nihombashi-Nichigin Dori Bldg., 4-6-7 Nihonbashi-Hongoku-cho,

Main Companies in the Unitika Group

Chuo-ku, Tokyo 103-8321 Japan
Tel.: +81-3-3246-7540

Trading Companies (Manufacturer-type trading companies)

Unitika Trading Co., Ltd.

Adʼall Co., Ltd.

Metlife Hommachi Square, 2-5-7 Hommachi, Chuo-ku, Osaka 541-0053 Japan
Tel.: +81-6-4705-9011

5 Uji-Tonouchi, Uji-shi, Kyoto 611-0021 Japan

Tel.: +81-774-25-2274

JAPAN
CHINA HONG KONG
Unitika Europe GmbHGERMANY

Thai Unitika Spunbond Co., Ltd.
(TUSCO)THAILAND

P.T. Emblem Asia

P.T. Unitex

INDONESIAINDONESIATHAILAND VIETNAM
INDONESIA

Fibers & Textiles

Polymers

Osaka Dyeing Co., Ltd.

Nippon Ester Co., Ltd.
4-1-3 Kyutaro-machi, Chuo-ku, Osaka 541-0056 Japan

Tel.: +81-6-6281-5520

Terabo Co., Ltd.

GERMANY

2-1-1 Yamazaki, Shimamoto-cho, Mishima-gun, Osaka 618-0001 Japan
Tel.: +81-75-961-1221

Unitika Spinning Co., Ltd.

28-55 Tsuda Minami-cho, Kaizuka-shi, Osaka 597-8511 Japan

Tel.: +81-72-431-2424

1701 Ikenarimen, Shisa-cho, Matsuura-shi, Nagasaki 859-4518 Japan
Tel.: +81-956-72-2101

Unitika Technos Ltd
19 Uji-Yaochi, Uji-shi, Kyoto 611-0021 Japan

Tel.: +81-774-23-8088

Unitika Mate Co., Ltd.
3-1-4 Motomachi, Naniwa-ku, Osaka-shi 556-0016 Japan

Unitika (Hong Kong) Ltd.

Unitika (Shanghai) Ltd.

CHINA

CHINA

Tel.: +81-6-4705-9141

Unitika do Brasil Industria
Textil Ltda.

U.C.S Co., Ltd.

BRAZIL120-1 Mori Minamiouchi, Kumiyama-cho, Kuse-gun, Kyoto 613-0024 Japan

Precision Kamijo Co., Ltd.

Tel.: +81-75-632-5020

26 Ichibanwari, Gokasho, Uji-shi, Kyoto 611-0011 Japan

Performance Materials

U.S.A.

Unitika Garment Technology Co., Ltd.

Tokyo Head Ofﬁce

Osaka Head Ofﬁce

BRAZIL

28-55 Tsuda Minami-cho, Kaizuka-shi, Osaka 597-0014 Japan

Unitika Glass Fiber Co., Ltd.
45-2 Uji-Kozakura, Uji-shi, Kyoto 611-0021 Japan

Tel.: +81-774-32-8352

Tel.: +81-774-25-2361

Tel.: +81-72-437-0055

Unitika Textiles Ltd.
88 Nakabara, Soja-shi, Okayama 719-1195 Japan

Tel.: +81-866-93-1251

Union Co., Ltd.
10-1 Omine Minami-machi, Hirakata-shi, Osaka 573-0145 JapanUji Plant

Okazaki Plant

Tel.: +81-72-858-1353

Unitika Sparklite., Ltd
13-8 Ikagahera, Goma, Hiyoshi-cho, Nantan-shi, Kyoto 629-0311 Japan
Tel.: +81-771-74-1075

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