Planet

Prosperity

https://www.unitika.co.jp

Unitika Report 2023
Integrated Report

Connecting peopleʼs
lives and technology

Ｘ-00966̲2023.12.S.F

PeoplePlanet（地球環境）New Medium-Term（3Management「新中期経営計画
つの P）」Plan (Three Ps)

Reduction of CO2 emissions
CO₂排出量、
産業廃棄物
and amountof industrial
waste disposedof場外処理量の抑制
outside the plants

Eight priority issues and the corresponding KPIs were specified in the previous

先の中期経営計画期間中に 8 つの優先課題とその KPI の特定を行いました。

medium-term management plan.

新中期経営計画では、8 つの優先課題を SDGs の考え方にある5 つの P に照らし合わせ、In the new medium-term management plan, the eight priority issues are compared

Prosperity,Planet,Peopleの３つに分類して施策を進めていきます。
withthe five Ps that are includedin the SDGs concepts,
and will be classified into three categories: Prosperity, Planet, and People.

Our
Philosophy
経営理念

Contributing
to society
暮らしと技術をProsperity（豊かさ・繁栄）

Expanding net sales of materials
3つの暮らしに貢献する
that
contribute to the SDGs
with the“three types of living”
素材の売上高拡大

byconnecting peopleʼs
結ぶことによって
lives and technology

社会に貢献する

PeopleBasic Management Policies
経営の基本方針（人間生活）

Human rights,
employee engagement,
人権の尊重、
働きがいのあるandダイバーシティのdiversity
会社作り、

As a corporate group, we are committed to our philosophy of “contributing to society

当社グループは、「暮らしと技術を結ぶことによって社会に貢献する」
byconnecting peopleʼs
lives and technology,” and to becoming an ことを経営理念とし、
essential corporation
for society that contributes to社会的存在感のある企業」
peopleʼs lives and the environment.
「人々の生活と環境に貢献し、を目指しています。

推進の実現

While
advancing ourbasic management
policies of “strengthening management
当社グループは、経営の基本方針である「機能素材メーカーとしての基盤強化」、 foundation
as a functional material manufacturer” and “strengthening our corporate character「企業体質・株主資本の強化」
を推進する中で、社会に貢献することこそ、

and capital stock,” the Unitika Group maintains our firm belief that contributing to society

当社グループの企業価値を高め、ひいてはステークホルダーの皆様のご期待にこたえるものと確信しています。

not only increases our corporate value, but also meets the expectations of our stakeholders.

Notes
on the Integrated Report
編集方針
In
FY 2021, the Unitika
Group integrated
the usual Fact Book
and Unitika CSR Report, and issueda Unitika
Report that summarizes the financial
ユニチカグループは、
2021年より従来の「ファクトブック」と「ユニチカグループCSRレポート」
を統合し、財務情報と非財務情報を一冊にまとめた
information and non-financial information in a single book. With this report, we are aiming to further deepen the understanding of the Unitika「ユニチカレポート」
として発行しています。本レポートを通じて、株主・投資家をはじめ幅広いステークホルダーの皆様に当社への理解をよりGroup by a wide range of stakeholders, including shareholders and investors.
深めていただくことを目指しています。
Organizations covered in the report: In principle, this report covers the activities of Unitika, Ltd. and the Unitika Group companies, both in Japan
報告対象組織andoverseas. ：原則としてユニチカ株式会社の国内事業所及び海外を含むユニチカグループ会社を対象としています。
報告対象期間Periodcovered：in2021年4月1日〜2022年3月31日
the report: April 1, 2022 to March（一部2022年4月1日以降の情報も含んでいます）
31, 2023 (includes some information from April 1, 2023 onwards)
Issue:
November （次回発行予定
2023 (Next scheduledissue: October 2024)
発行：2022年9月：2023年9月）
Important notes concerning forecasts: The contents of this report are based on the information currently available to the Unitika Group, and on
見通しに関する注意事項：本レポートに記載されている内容は、当社が現在入手している情報及び合理的であると判断する一定の前提に基づいて
certain assumptions the Unitika Group determines to be reasonable; the contents are not intended to be a promise that they will be achieved. The
おり、その達成を当社として約束する趣旨のものではありません。実際の業績等は様々な要因により大きく異なる可能性があります。
actual results, etc., may differ considerably due to various factors.

1

ユニチカレポート2022
Unitika Report 2023

Contents
Introduction

Value Creation Strategy

ESG

Financial andCorporate Information

1 Our Philosophy/Contents

925 Promotion of Sustainability

3 History of the Unitika Group

13 Value Creation Process

29 Environment

45 10-year Financial
Summary

5 Main Business Areasand Product Groups

15 Medium-Term Management Plan

34 Society

19 Messages from Officers

39 Governance

7 Financial and Non-Financial
Highlights

Message from the President

47 Business Overview
by Segment
49 Company Profile

Unitika
ユニチカレポート2022
Report 2023

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

Polymers Segment
Polyester film
“Emblet”

Polyarylate“U-Polymer”

Easy-to-tear film
“Emblem NC”

Heat-resistantpolyamide film
“Uniamide”

Nanocomposite

Retro-reflective cloth

High gas barrier film
“Emblem HG”

Recycled nylon film
“Emblem CE”

Heat-resistant polyamide resin“XecoT”

Solvent-resistant hollow
fiber membrane

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

Simultaneous biaxial-oriented
nylon film
“Emblem”

Glass beads

Glass fiber IC cloth

Amagasaki Boseki(Later, Dainippon Boseki)
Head Office Plant

Release film
“Unipeel”

Multi-layer film
“Emblon”

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

Activated carbon
fibersLow thermal
expansion IC cloth

Activated carbon fiber
sheetsRetro-reflectiv cloth

Spunbond
nonwoven fabricCore-sheath composite
nonwoven fabric“Eleves”

Spunlace

Performance
Materials
Segment

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

Natural fiber

Cotton yarn

Meta-aramid fiber

Synthetic fiber
Vinylon fiber

Polyester fiber
Nylon fiber

Rayon fiber

Multi-layer yarn
“Palpa”

Recycled fiber“Uniecolo”

Silky material

1889

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.

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Unitika Report 2023

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.

Polylactic acid
“Terramac”

Cesium-adsorbing fiber

Reusable anti-stress mask

Fibers & Textiles
Segment

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 2023

4

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

Food packaging films
2 (including highly functional

Films

2

products such as “Emblem HG”)

● Processed meat products, Instant food products,

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● Flat cables(including highly functional
products such as
Unitika nano-composite nylon6)● Engine covers, Mirrors● Interior parts,

5● Adhesives● Lighting equipment,

Electrical parts

Office equipment

7 “Terramac”, “XecoT”

ACF● Deodorizing, Air purification materials

9 Highly functional porous plates
10 Industrial materials

Glass
Fibers11 Electronic materials (IC cloth)

Glass
Beads

Nonwoven
Fabrics● Solar cells● Materials forheat radiation

7

8● Filters (for clean rooms)

9● Materials for electrical

10

12● Reflective materials, Blasting, Fillers

13 Spunbond● Engine silencers, Carpet, Automotive interiors● Daily necessities

purifiers

filtersmasks● Materials for water● Refrigerators

absorption and transpiration● High precision, Industrial use● Water● Water purification● Deodorizable● Humidifiers● Bag filters

11● Electronic materials

and electronic applications

12 Glass beads● Civil engineeringand construction materials● Reflective materials

13● Filter applications

14 “Terramac”

1015

17 Polyester staple fiber● High-melting binder fibers

18 Ultra-high-strength polyester
filament yarns and monofilaments● Materials for tire (chafers)● Conveyor belts● Infection●Packaging materials,

protective clothes

Daily necessities, House wraps● Filters

Disinfection sheets, Cosmetics goods

20

Electrical wires

Fibers and textiles
21 (garments, lifestyle materials,

21

and bedding)● Sheets for agriculture● Materials for18● 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● Functional paper● Sheets for greenhouses● Roofing, Carpet, Civil engineering materials,● Disinfectant cotton,

17● Daily necessities● Tents and sheets

14● Anti-perspiration sheets,● Hoses● Transparent non-combustible sheets● Road markings● Daily necessities

15 Spunlace

19 “Terramac”
20 PA hollow fiber membrane

Garment
Fibers● Sashes, Cable ties

● Filters (for liquid purification)

16 Wet curing sheet for concrete

Industrial
Fibers6● Office equipment

8 Activated carbon fibers

Fibers&TextilesWristwatches

Functional plastics

6

Performance
Materials● Office equipment,

4● Sensors, Switches, Smartphone cameras● 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

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Unitika Report 2023

“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.

Unitikanano-composite
nylon6
Unitika nano-composite nylon6 is acomposite material boasting superior
hardness, heat resistance,andmoldability. Potential applications
for this product are growing, such as
in engine covers etc. It can be used
as a metallic coloredpart to eliminate
the need for painting.It contributes
to reducing costs andCO2 emissions.

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

Finished glass fabrics
for printed circuitboards
Unitika has an integrated manufacturingsystem that manages everything fromthe raw fibers to weaving and surface
treatment processing. Unitika glass
fabric represents a concentration of
all our process technologies, and isused in many digital devices wherehigh performance is required.

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 “Marix”“ Marix ” has high elongation
filters
The activated carbon fibers of Unitika
feature an exceptional absorption
speed for minute amounts of harmful
substances. They are used in a wide
range of filters in water purifiers
and air purifiers, helping to clean thewater environment and atmosphere,
and to prevent pollution.

performance due to the three-dimensional interweaving of thefilaments, as well as superior
dimensional stability during
processing. As a result, it is widelyused in automotive and interior
applications as a base fabric for
carpets.

“Cottoace”“Melset”“Palpa”“Cottoace” is cotton spunlace thatis made of 100% natural cotton.
It is formed into a sheet using only
the power of water, with no binders
or other additives. It isgentle to theskin and has anattractive soft feel.

“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 multi-layer
yarn products, introduced in 1975.
It features polyester staple fibers
wrapped in high-quality cotton.
Some products utilize recycled
polyester as a raw material, anda family of materials with a wide
variety of added functions has
been created.

Unitika Report 2023

6

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Financial and Non-Financial Highlights

Financial Highlights

Non-Financial Highlights

Year-on-year

Net sales

Operating profit+3,230 million yen(100 million yen)

1,291.0

Year-on-year

Cash Flow (CF)4,680 million yen▲(100 million yen)

1,195.4

1,103.8

1,147.1

CO2 emissions from all domestic
production sites

Operating CF(100 million yen)

1,179.4

Investment CF(100 million yen)

81.4

54.7

60.2

60.1

25.4

13.3

33

5.1

△3.2

△61.7

△64.4

△89.9

△101.920192020year )(Fiscal

2022

2021

Year-on-year

Ordinary profit

2018

2019

Profit attributableto owners of parent

5,330 million yen

▲

2020

2021

2022

year )(FiscalYear-on-year

2019

2020

2021

Capital investment(100 million yen)

△75.8
2022

70.9

64.0

22.2

53.8

73.9

1.0

31.5

10.7

47.7

44.8

45.2

2019

2020

2022

2021

(

Fiscalyear)

Net assets/Capital adequacy ratio
Net assets (100 million yen)

413.5

19.0

389.3

18.3

Capital adequacy ratio (%)

411.9

20.7

430.7

439.2

2018

2019

2020

2021

2022

year )(Fiscal

2018

2019

Interest-bearing liabilities

R&D expenditures(100 million yen)(100 million yen)

1,026.0

996.0

968.0

938.9

934.4

34.7

36.2

2020

46.7

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Unitika Report 2023

2019

2020

2021

2022

year )(Fiscal

250

257

2020

244

( year )2022 Fiscal

2021

28%

relative to FY 2013 level

2021

20.7

2018

2019

19.5

2022

year )(Fiscal

2013

2020

Child-rearing leave usage ratio

36.0

19.0

20.5

37.6

（人）

( year )2022 Fiscal

2021

Year-on-year

36.4

19

▲

21.1

+16%
52.8%
(19)

36.6%
(15)

15.2%
(7)
6.1%
(3)

2018

2019

25

47.3

22.2

21.6

252

263

22

27.0

76.4

△21.6

2018

2018

282

272

（kt）

76.1
60.7

31

CO2 emissions related
to logistics

Depreciation(100 million yen)

38.6

2013

year )(Fiscal

283

264

△80.9

93.2
52.3

295

Capital investment/Depreciation(Property, plant and equipment)

2,120 million yen▲(100 million yen)(100 million yen)

2018

297

86.7

87.0

△4.0

2018

357
61

98.0

relative to FY 2013 level

Scope2

Scope1（kt）

Free CF(100 million yen)

148.7

89.9

26%

▲

（Scope1+Scope2）

2018

2019

2020

2021

2022

year )(Fiscal

2018

2019

2020

2021

2022

year )(Fiscal

2018

2019

8.1%
(3)

2020

2021

2022

year )(FiscalUnitika Report 2023

8

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Message from the President

We are shifting gears to strengthening
our businesses, and aiming to improve
our earning capacity.
In FY 2022, there was growth in sales of high value-added products,
but due to high raw material and fuel prices, the result was an increasein net sales but a decrease in operating profit.

Shuji Ueno
Representative Director

The results for FY 2022 saw net sales increase by 3,200 million yen to 117,900 million yen comparedto FY 2021, while operating profit saw a large drop of 4,700 million yen to 1,300 million yen. The higher
net sales were due to contributions starting in the third quarter from price revisions and growing salesof high value-added products, despite a struggle for sales caused by worsening market conditions. Thisis the result of the efforts we made to develop high-performance films with improved gas barrier
performance, heat resistance, and other characteristics in the food packaging field which is our primarymarket. In addition, there was steady growth in sales of new products such as our ultrathin glass fabricthat is seeing surging demand as an electronic material, and hollow fiber membrane modules which
help save energy and reduce costs.
However, the largest factor affecting the large decrease in operating profit was the high prices of raw
materials and fuel, which increased at a rate exceeding our price revisions. There was also a large effectfrom declining sales quantities due to sluggish demand in the second half of the fiscal year. The threesegments of Polymers, Performance Materials, and Fibers & Textiles all saw large declines in operating
profit. In particular, the Fibers & Textiles segment was in the red for the third consecutive year, and the
Performance Materials segment fell from the black into the red, highlighting the business areas where
achieving a profit is difficult. In these and other ways, the environment was extremely adverse in FY
2022, which was the final fiscal year in our medium-term management plan G-STEP30 1st.
In FY 2023, while we expect demand in electrical and electronic applications to recover in the second
half of the year, demand has been gradually recovering beginning from the start of the year in foodpackaging applications and automotive applications, and we expect to see results from the pricerevisions we carried out in response to the soaring prices of raw materials and fuel. When the effects offurther growth in high value-added products are added, we intend to achieve a recovery in operating
profit, an increase by 2,500 million compared to FY 2022 and reach 3,800 million yen.

and President,
Chief Executive Officer

Results and issues of the medium-term management plan G-STEP30 1st
which was focused primarily on the three Gs
The three basic policies and basic strategies of the medium-term management plan G-STEP30 1st
were Growth, Global, and Governance. Although the results were extremely difficult in terms ofbusiness revenue, there were positive results in terms of each of the three Gs.
For Growth, we made steady progress in the development of high value-added products in the foodpackaging and electrical and electronic materials fields. This was a key element of our efforts tostrengthen our revenue structure over three years, and these areas saw a rise in sales. We are focusing
on development of environmentally-friendly products, and have succeeded in creating a foundation for
accelerating development in the future. At the same time, the deficit is expanding in the Fibers &Textiles segment, and there are fields where achieving profits has been difficult in the Performance
Materials segment. Factors such as these show that there are unprofitable areas which are compressing

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Unitika Report 2023

Unitika Report 2023

10

Introduction

business revenue, and these remain issues to be addressed.
For Global, there have been significant effects from the COVID-19 pandemic, and there were notabledelays in progress. One example was our plan to expand production to meet growing demand in the
global market centering on the Asian region by constructing a new nylon film plant at our subsidiary
PT. Emblem Asia in Indonesia. The project was nearly two years behind schedule, and operation finally
started in August 2022. There remain issues in the development of global human resources as well.
Cross-border travel was strictly limited by the pandemic, reducing the number of opportunities for
personnel to interact and preventing us from carrying out training as planned. Despite these
conditions, we have made steady progress, for example by establishing Unitika Europe GmbH inGermany and constructing a film sales system at Unitika Advance (Thailand) Co., Ltd.
For Governance, we have steadily improved its level including introducing systems for establishing aquality assurance system. Regarding the rebuilding of risk management, we have carried out measures
such as identifying a wide range of risks including climate change risks, and creating a risk map. In
addition to quality assurance and risk management, we have proceeded with establishing various newcommittees such as the Sustainability Committee and the Compliance Committee, and organized theirfunctions. We have constructed an operating system that is linked directly with the Board of Directors
and have taken other steps to further strengthen our governance system. At the same time, there is asense that we have identified issues facing our progress toward the next stage in strengthening ourmanufacturing sites, including development of human resources who can pass on their skills, andupdating aging equipment.

Launch of the new medium-term management plan G-STEP30 2nd
Beginning from FY 2023, we have launched the new three-year medium-term management plan
G-STEP30 2nd, which aims to “shift gears to strengthening our businesses.” While there is no change tothe position of the three Gs (Growth, Global, Governance) as the basic policies, the contents of the plan
have been updated.
For Growth, as the central theme of the plan, we will enact fundamental measures for unprofitablebusiness areas, rebuild our business portfolio, expand sales of highly functional products, and devote
even greater effort to the development and promotion of sustainable products. For the past several
years, we have focused our efforts on constructing R&D systems to accurately identify market andcustomer needs, and carry out rapid development. As a result of these and other measures, we are now
steadily developing high value-added products. In the future, we will continue to increase our lineup of
products more likely to be chosen by customers and with distinctive characteristics, and will work tofurther increase sales. In addition, we will devote further efforts to price revisions and cost reforms.
For Global, we intend to focus directly on global film development centering on PT. Emblem Asia
(Indonesia) where our new production equipment has finally started full-scale operation. The plancalls for increasing the ratio of overseas net sales to 25% by FY 2025. Compared to the current level of
23%, the difference is just a 2-point increase, not a large numerical gap. However, we have focused
efforts recently on strengthening our manufacturing and sales systems, and will prepare a foundationthat will allow us to achieve the 35% target in our long-term vision. As one part of this process, we will
accelerate our initiatives for developing and securing global human resources, and revitalize theinteraction of personnel through means such as overseas study and overseas trainee system.
For Governance, we will continue working to strengthen our quality assurance, risk management, andother systems, and will endeavor to cultivate an open organizational culture. Development of humanresources is essential for the continuation of our business. For this purpose, we will focus our efforts on
training production site leaders through selective training in order to pass on the skills which are thesource of our competitiveness to the next generation. We will also invest in aging equipment,
and otherwise carry out improvements to our production sites, ensure employee safety, and enact
comprehensive and reliable risk countermeasures.
The most important issue running throughout the entire plan is a recovery in and strengthening ofbusiness revenue. We will address this as our highest priority, and take sure steps toward realizing ourlong-term vision.

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Unitika Report 2023

Value Creation
Strategy

ESG

Financial andCorporate Information

Setting FY 2025 target values and implementing the Sustainability Plan
In the new medium-term management plan, in addition to the three Gs, we are also working to
implement the Sustainability Plan. In the Unitika Group, eight priority issues (materiality) and thecorresponding KPIs were specified in the previous medium-term management plan. In order to morereliably achieve our targets for the target year of 2030, the new medium-term management plan sets
milestones (intermediate targets) for 2025, and we will carry out measures for the eight priority issues
classified into the categories of Prosperity, Planet, and People based on the SDGs targets.
For Prosperity, we have set business themes for making lives more affluent from the three perspectives ofsafety and security, convenience and comfort, and coexistence with the environment. We haveestablished numerical targets of increasing sales of materials based on these three themes by a factorof 1.6 by FY 2025 compared to FY 2019 levels, and by 2.6 by FY 2030.
For Planet, we have established numerical targets for CO2 emissions and for the amount of industrial
waste disposed of outside our plants.
For People, we are focusing on investment in human capital, and working to create a company that
respects human rights and is a rewarding place to work at, and to promote diversity. By strengthening
supply chain management, we are enacting management to prevent human right abuses within our
supply chain.
We recognize that the Sustainability Plan is an important part of our management plans that will play
an essential role if the Unitika Group is to be a company that is continuously chosen by customers, andthat the three Ps initiatives will form the foundation for our business activities and increasing profits. In
particular, our Planet and People initiatives can be carried out by our company to some degree basedon its own efforts. However, Prosperity will only yield sales once the value of the initiatives has been
well understood by our customers. We believe it is important that we work to identify that value which
will be highly evaluated by customers and society, and address these initiatives sincerely.

To all stakeholders
In FY 2022, we were subject to major impacts from the external environment, and the results were
extremely challenging. Issues from the previous medium-term management plan remained
incomplete. In the new medium-term management plan, we will carefully address these issues in orderto restore business results, and devote our every effort to strengthening our business earning capacity.
Key to these activities is the unique strengths of the Unitika Group: our advanced technical capabilities
developed over many years and our high value-added products with high functionality that meetmarket needs with environmentally friendly performance.
The current times are seeing sweeping changes in market structures, so we will focus our attention on
responding to the shifting situation, and transform the great potential of the Unitika Group into theform that can best meet the needs of people and society. All employees, including the management
team, will devote their full efforts for this purpose. I hope that the Unitika Group can continue to relyon the understanding and support of all our stakeholders.

Unitika Report 2023

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

Polymers Segment

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

Performance Materials Segment
Fibers & Textiles Segment

Strengths

by connecting peopleʼs・Responsiveness to diverse needs

lives and technology

continuously chosen
by customers

・A company that contributes

See pp. 47‒48 for details.

Contributing to society

A company that isConvenientandcomfortableliving・Global niche technologies and products

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

to society through manufacturing,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

Shift gears tostrengthening
our businesses

The three items listed here are

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“business-related priority issues,”

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. 25‒28 for theother priority issues.

See pp. 15‒18 for details.

Basic matters underlying
the priority issues

13

Unitika Report 2023

Compliance

Strengthen governance

Ensure product safety and quality

Promote digital transformation

Unitika Report 2023

14

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Medium-Term Management Plan

Long-term vision

coexistence with the environment.
We are moving forward with our three-step initiatives
toward realizing our long-term vision, as we strive to achieve

In May 2020, we revised the desired image of the Unitika

sustainable growth and contribute to society. The single

Group, and formulated G-STEP30, a long-term vision fortheme that underlies all three steps is promoting the three Gsaround 2030.

(Growth, Global, Governance), and managing their progress.

A look back at the previous plan G-STEP30 1st: FY 2020 to 2022
Despite growth in net sales in both FY 2021 and FY 2022, net

the preparation of a sales system, however many issues remain

sales did not reach the plan target. In terms of profits, in addition

as a result of delays in the operation of production equipment,

to the high prices of raw materials and fuel, other factors

development of human resources, and other matters. For theUnder our philosophy of contributing to society by connecting

included a drop in sales and an impairment of non-current

third G Governance, we succeeded in establishing a quality

peopleʼs lives and technology, we are striving to be a company

assets, and the results deviated largely from the plan targets.

assurance system and rebuilding the risk management system,that is continuously chosen by customers, with the GroupRegarding the three Gs, for the first G Growth, although sales

however there remain issues concerning development ofgrew for high value-added products and environmentally-friendly

human resources and passing-on of skills in regard tofood packaging films, the handling of areas where profitability

strengthening the manufacturing sites. There also remains thehas declined remains an issue. For the second G Global, we

issue of upgrading aging equipment as a means of addressing

proceeded with the establishment of new overseas sites andbusiness continuity risks.

mission of contributing to achieving the SDGs throughapproaches to the “three types of living”, safe and secure

GrowthGlobalGovernanceliving, convenient and comfortable living, and living inConsolidated net sales

A companythat iscontinuouslychosenDesired image in the long-term vision(100 million yen)

Consolidated operating profit

Actual results

Plan(100 million yen)

Actual results

1,470
1,104

60

「G-STEP30 2nd」
FY2023〜2025

2021

2022

(

Fiscalyear)

Establish a growth cycle● Achieve a healthy debt system● Improve corporate value

Growth● Prepare a business baseGlobalImplement more technical training, strengthen personnel skills, evolve work processes,
etc. to facilitate sustainable growth
Improve quality and build trust, ensure thorough risk management, expand business areas,
etc. to prepare a business operation baseof highvalue-added products)● Build a global production system● Strengthen sales capabilities throughalliances
resources

Contribute torealizinga sustainable
society

Governance

Reform our corporate culture andawareness(back to basics in manufacturing)● Establish a quality assurance system● Rebuild risk management

Unitika Report 2023

(

)

2020

2022

2021

year )(Fiscal◯Achieved

Evaluation △Not achieved (issue for the next plan)

There was growth in sales of environmentally-friendly food packaging
films.

(speeding up the development● Develop and strengthen global human2030

1
Fiscalyear● Strengthen our base and infrastructure

Promote our global business

Create and provide business value,
improve the Groupʼs corporate value

2022

There was growth in sales of high value-added products in fields suchas food packaging, electronic materials, and water purifiers.

(eco, creation of new business)● Promote global businessdevelopment● Reform our corporate culture
and awareness

2021

Build a robust business portfolio● Promote sustainability● Rebuild the business portfolio● Promote our global business

15

2020

Priority policy● Realize a constant growth trajectory

Shift gears to strengthening
our businesses

2025

39

60

Summary of priority policies

FY2026〜2028

2022

71

13

「G-STEP30 3rd」

● Build a robust business portfolio

Plan

22

2020

Prepare a business
operation base

Actual results

1,179

1,147

continuously chosen by customers.”

FY2020〜2022(100 million yen)110

We are aiming to be a “company that is「G-STEP30 1st」

Consolidated net income
Plan● Strengthen manufacturing sites

Profitability worsened in the garment fiber business,
industrial fiber business, and related areas.
It is necessary to rebuild the business portfolio.

Established Unitika Europe GmbH.
Prepared a film sales system at a subsidiary in Thailand.
There were large delays in the capital increase at PT. Emblem Asia
(Indonesia).
Revenue declined as a result of declining demand in the region.
We were unable to carry out training and education of global
human resources as planned due to the COVID-19 pandemic.
Some levels of results were achieved as a result of introducing
a quality assurance system.
dentified risks and created a risk map.
Issues remain for strengthening of manufacturing sites(passing on skills, training personnel).
Action such as upgrading aging equipment is required in orderto address business continuity risks.

Unitika Report 2023

16

Introduction

Promotion of Sustainability

New medium-term management plan G-STEP30 2nd: Starting from FY 2023
Based on the issues in the previous plan, the new medium-termand “Governance: Prepare a business base.”management plan carries on the concept of the three Gs, which

In line with these policies, we are aiming to implement measures

are the theme of the long-term vision G-STEP30, andfor each of the three Gs to achieve the targets, and to be aestablishes the basic policies of “Growth: Rebuild the business“company that is continuously chosen.”

Actual results(100 million yen)

Plan

Actual results(100 million yen)

2,000

See pp. 25‒28 for details.

the three Gs, we are also working to implement the Sustainability

issues are compared with the five Ps that are included in thePlan. The Unitika Group has specified eight priority issues andSDGs concepts, and will be classified into three categories:

the corresponding KPIs in the previous plan.

Prosperity, Planet, and People.

Basic policies

Our Philosophy

Contributing to society by connecting peopleʼs lives and technology

Group Mission

Contributing to the SDGs with approaches
to the “three types of living”＊* Safe and secure living, convenient and comfortableliving, and living in coexistence with the environment

Desired Image
Contributing to the realization of a sustainable society, aiming to be a “company that is(Long-term Vision) continuously chosen by customers.” We will contribute to the realization of a sustainable
Sustainability Policy society by connecting peopleʼs lives and technology through its business activities.

Plan

200

1,500

1,179

Financial andCorporate Information

In the new medium-term management plan, the eight priority

Financial targets
Consolidated operating profit

ESG

In the new medium-term management plan, in addition to

portfolio,” “Global: Promote global business development,”

Consolidated net sales

Value Creation
Strategy

70
13

2022

2025

2030 (Fiscal year)

2022

2030 (Fiscal year)

2025(100 million yen)

Actual results
FY 2022

Medium-term plan
FY 2025

Long-term vision
FY 2030(100 million yen)

Total FY
2020 to 2022

Total FY
2023 to 2025

Ordinary profit

11

50

ー

Capital investment

224

200

Net income

1

20

ー

Depreciation

157

224

Capital adequacy ratio

22.2%

23%

30%

R&D expenditures

110

110

ROE

0.3%

5% or more

ー

ROIC

0.8%

4% or moreーOverseas sales ratio

23%

25%

35%

Net assets

439

486

ー

Interest-bearing liabilities

934

903

ー

Enact fundamental measures
for unprofitable business areas

GrowthRebuild
the business portfolio

Promoteglobal businessdevelopment

management

Coexistenceof businessand the environment

Sustained
improvementof corporate value

Safe and secure living
Convenientand comfortable living
Living in coexistencewith the environment

Business partners
and clients

GlobalGrowth(partnerships
for mutual prosperity)

Employees
Motivating feelingof actual growth
Safe andsecure workplaces

GovernancePrepare a business baseRebuild the business portfolio

Sustained businesscollaborations

Prepare a business base

Implementation of the Sustainability Plan（Prosperity, Planet, People）

Main measures
Reduce costs and fully increase prices to cover costs
Identify unprofitable business areas

Lineup of “Emblem HG” and other gas barrier products

Develop and promote sustainable products
Sales of high value-added products“Uniamide”, special glass fabricStrategy for each segment

See pp. 19‒24 for details.

We are aiming to increase
net sales and operating profit

Net sales

Operating profit

Prepare global production and sales systems

PT. Emblem Asia (Indonesia), Thai Unitika Spunbond Co., Ltd. (TUSCO) (Thailand)

Develop and strengthen global human resources

Unitika Europe GmbH (Germany)
Expand sales of Unitika products in the European region

Fibers & Textiles segments,(100 million yen)

Reform our organizational culture

Cultivate an open organizational culture
Focus on development of next-generation management
Diversity management

which recorded operating loss

Polymers

515

670

+155

35

53

+18

Performance
Materials

344

460

+116

▲5

14

+19

Fibers& Textiles

319

370

+51

▲15

3

+18

Other

1

0

▲1

▲1

0

+1

Total

1,179

1,500

+321

13

70

+57

GovernancePrepare a business base

Pass on skills, prepare production sites

Expand sales within and outside the region, centering on Asia,Europe, and the Americas

in all segments. In both the
Performance Materials andin the last plan, we are aiming

Develop core personnel, promote womenʼs participationto achieve profitability in FY

Go back to basics in manufacturing, strengthen manufacturing sites

2025.

Develop production site leaders through selective education
Promote the digital transformation (DX), utilize production management
system data

Create safe and secure workplaces

Carry out health management
Prepare production sites consistent with risk management(measures for aging equipment)

Unitika Report 2023

Shareholders
and investors

plan“Emblem CE”, “XecoT”, hollow fiber membraneand develop human resources

17

Valuesprovided

End users

Globalenvironment

Strengthen the nylon film business

Promote growth strategies

Expand sales of highly functional products

GlobalStakeholders

Medium-term

Basic policies, main measures
Basic policies

Values provided to stakeholders

Actual results
FY 2022

Medium-term plan
FY 2025

Difference

Actual results Medium-term plan
FY 2022
FY 2025

Difference

Unitika Report 2023

18

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Messages from Officers
Polymers Segment

Net sales

Operating profit(100 million yen)

Actual results

Plan(100 million yen)

Actual results

670

53

515

2022

Director, Managing Executive Officer
In charge of the Polymers Segment

Masakazu Kitano

35

2025 （Fiscal year）

focused on expanding sales of high value-added products andsustainable products, and on promoting global business development.

One typical example of high value-added products and sustainableproducts is our packaging barrier ﬁlm. It contributes to food safety
and security, while also helping reduce food loss and waste.

“U-Polymer” polyarylate resin is a super engineering plastic which
Unitika was the ﬁrst in the world to industrialize. With continuing

advances such as development for optical lenses and camera
modules, and achieving a low coeﬃcient of linear expansion thatis comparable to aluminum, we expect sales to grow in the future.

We are working to expand production of recycled chemical
products in order to meet surging demand.

We will expand sales of high value-added products
and sustainable products demanded by modern times.
Results summary and forecast
for the next year
Although sales were strong in the first half of FY 2022, there
was a global relaxation of supply and demand in the foodpackaging sector during the second half, and the packaging
films that are our main products faced a difficult struggle.
Demand declined steeply and sales fell centered on theindustrial film, functional plastic, and electrical andelectronics sectors. Revenues were also affected by the highprices of raw materials and fuel, combined with the weak yen.
In FY 2023, we expect an easing of inventory adjustments inthe food packaging sector, and a recovery in domestic automobile
production. As a result, we are forecasting a recovery in salesof packaging films and engineering plastics. We are
expecting sales of industrial films and functional plastics torecover beginning from the second half of the fiscal year.
> For FY 2022 results, see pp. 47‒48.

19

Unitika Report 20233

Medium and long-term strategies
A look back at the previous medium-term
management plan (FY 2020 to 2022)
There was large growth in sales of high value-added products,

Plan

As part of promoting global business development, we havealready started operation of new ﬁlm equipment in Indonesia, and

2022

2025 （Fiscal year）

Promotion of sustainability
We are focusing on the development of materials that cancontribute to the “three types of living.” We will continue developing
products that can contribute to the global environment, including

food packaging ﬁlms that not only contribute to food safety andsecurity, but also to reducing food loss and waste and reducing CO2

emissions, and highly functional plastics with lighter weights andsuperior thermal conductivity, as well as plastics which do not use
organic solvents and can be used without coating or painting.

We are also putting eﬀorts into training and educating personnel

responsible for research and development, for overseas production
and technical development, and for formulating and implementing
sales strategies for overseas companies.

completed renovations for new barrier ﬁlm. We are also

Message to stakeholders

Japan. In the ﬁeld of packaging ﬁlms, we have two production

contribute to reducing environmental impact in order to continue

China, Europe, the US, and other regions, and will reinforce ourthe future. By creating and providing ﬁlms and plastics that support

reinforcing the supply system for “Emblem HG” barrier ﬁlm insites in Japan and Indonesia. We are planning to expand exports tosales systems in these countries and Thailand. In the plastics business,
we are aiming to expand sales for electrical and electronic applications
centering on Asia.

We will accelerate our development of materials that canbeing a company that is friendly to people and the environment ingrowth in the semiconductor and high-speed communications ﬁelds,
and materials that are on the leading edge of innovation, we will
make broad contributions to society and achieve sustained growth.

such as “Emblem HG”, “Unipeel”, and “Uniamide”. Sales of
products that contribute to the reduction of environmental
impacts also grew, such as environmentally friendly foodpackaging films that use recycled chemical raw materials,
and our “XecoT” highly functional plastic made using raw
materials derived from plants. However, the effects of the
COVID-19 pandemic produced delays in increasing nylon film
production capacity in Indonesia, and the drop in demand in“Emblem HG” barrier ﬁlm̶making long-term storage of food products possible
Packaging barrier ﬁlms are able to preserve wrapped food products for prolonged periods

without harming their ﬂavor, color, or other aspects of quality, and contribute not only

the region resulted in declining revenue at PT. Emblem Asia.

to food safety and security but also to reducing food loss and waste. Generally, refrigerated storage

New medium-term management plan
(FY 2023 to 2025)

a retort treatment, and can reduce the amount of energy used compared to refrigerated storage.

is used when storing food product for long periods. This requires large amounts of energy.

However, “Emblem HG” barrier ﬁlm allows for long-term storage at room temperature using

In the new medium-term management plan, our eﬀorts are

Unitika Report 2023

20

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Messages from Officers
Performance Materials Segment

Net sales

Operating profit(100 million yen)

Actual results

Plan(100 million yen)

Actual results

460

Plan

14

344

▲5

2022

Managing Executive Officer
In charge of the Performance
Materials Segment

Hirokazu Taketoshi

glass fabric with low dielectric constants and low thermal expansion

operating proﬁts as well.

nylon hollow ﬁber membranes. We will work actively to expand sales

the pace of cost increases, and we failed to reach our target for
For activated carbon ﬁber, glass ﬁber, and glass beads, we achieved

Russian invasion of Ukraine, and this resulted in soaring raw material
costs. With the end of the COVID-19 pandemic in sight, there were

inventory adjustments during the second half of the year, and sales
slowed in all business areas. In particular in the electrical andA look back at the previous medium-term
management plan (FY 2020 to 2022)
While the COVID-19 pandemic generated demand for products

electronics sector, there was a sharp drop in sales, and we were thrustsuch as masks and protective clothes, there were large negative

While the forecast for FY 2023 calls for a recovery in the construction,

in demand for anti-perspiration sheets and other products in theinto a diﬃcult situation.

urban infrastructure, industrial, and mobility sectors, a recovery in theelectrical and electronics sector is expected to occur in the second

half of the year. We expect to raise prices to cover the higher costs ofeﬀects from the reduced ﬂows of people, and there was a large dropthat are produced in Thailand.

eﬀects are starting to become visible. In Japan, we failed to reach

reduce costs, aiming to improve proﬁtability.

high value-added products, and there remain issues to be addressed.
For spunlace, demand declined due to the eﬀects of the COVID-19

pandemic, and the target was not achieved. A rapid review of thesales and development of new applications and new products is anurgent issue, and we will formulate measures to address this in FY 2023.

In the area of industrial ﬁber, sales proceeded according to the planfor nylon hollow ﬁber membranes and short-cut cotton that are usedas supports for water treatment membranes. We have decided toinvest in an increase in production, and are working to develop new
products in parallel with this. Ultra-high-strength polyester ﬁlament

the weak value of the yen, leading to large increases in costs.

continued to rise in FY 2022 with the Russian invasion of Ukraine andaging equipment, and enact measures to improve productivity andPromotion of sustainability
We aim to contribute to the sustainability of society through ourbusiness. We will expand sales of glass ﬁbers in order to realize“convenient and comfortable living.” As part of our corporate activities

in coexistence with the environment, we are now introducing
equipment to reduce the amount of industrial waste generated in
manufacturing processes that needs to be disposed of outside theplants. This will not only reduce waste but also reduce manufacturingcosts.

yarns faced large manufacturing loss due to aging equipment. We

will undertake equipment investment in FY 2023 and work to make
improvements.

New medium-term management plan
(FY 2023 to 2025)
Matters addressed in the new medium-term management plan

“improving proﬁtability through structural innovations.” The

We expect that time will be required to achieve a recovery in results.

Unitika Report 2023

targets for cultivating new sales channels and expanding sales of

In particular in the nonwoven fabric and industrial ﬁber polyester

businesses, the prices of raw materials began rising in FY 2021, andFor the polyester ﬁbers in the industrial ﬁber business where

proﬁtability has been declining, we will carry out countermeasures forinclude “further increasing the added value of the products that

not achieve our target for net sales.

puriﬁer and automobile applications, as well as the nonwoven fabrics

for the Thai Unitika Spunbond Co., Ltd. (TUSCO) product spunbond.

construction, civil engineering, and daily products sectors, so we did

raw materials̶something that had been delayed before. Utility costs

will continue to rise, and achieving proﬁtability will remain diﬃcult.

21

Medium and long-term strategies

For global development, we will work toward expansion of global

new medium-term management plan.

We have already shifted to sales focused on proﬁtability, and the

In FY 2022, geopolitical risks began to manifest as a result of theof these products.

sales of activated carbon ﬁbers for VOC gas adsorbing sheets in water

In the nonwoven fabric sector, the results were far below the plan

> For FY 2022 results, see pp. 47‒48.

in the glass ﬁber electrical and electronics sector, and industrial ﬁber

and electronic sector and other ﬁelds that we were targeting. We
also carried out planned preparations for investment directed at the

Results summary and forecast
for the next year

2025 （Fiscal year）

Our eﬀorts to raise prices to cover these costs could not keep up with

our objectives for marketing and sales of new products in the electrical

We are focusing on further increasing the added valueof the products that make us stand out,
and on accelerating global development.

2022

2025 （Fiscal year）

make us stand out,” “promoting global business development,” andproducts that make us stand out include activated carbon ﬁber ﬁlters
for highly functional product applications, support materials forhighly functional nonwoven fabric and industrial ﬁber ﬁlters, special

Message to stakeholders
When formulating the new medium-term management plan,

the concept was not simply a conventional increase in revenue.

Instead, we incorporated the new perspective of SDGs. We once
again recognized that contributing to the realization of asustainable society by connecting peopleʼs lives and technology

through our business activities will lead to the continued survivalof our company.

To not be left behind by the times, we will steadily carry out

innovations in our business structure as we aim to achieve thetargets of the new medium-term management plan.

Unitika Report 2023

22

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Messages from Officers
Fibers & Textiles Segment

Net sales

Operating profit(100 million yen)

Actual results

Plan(100 million yen)

Actual results

Plan

370

319

▲15

3
2025 （Fiscal year）

2022

President, Representative Director
Unitika Trading Co., Ltd.

Katsuhide Kyunai

2025 （Fiscal year）

New medium-term management plan
(FY 2023 to 2025)
We will aim to achieve profitability in the final year of the
new medium-term management plan. We will carry out cost
reductions and raise prices to cover costs and will complete
structural improvements in unprofitable business areas. Our
three main focuses in the previous medium-term management
plan will be continued, and we will focus our efforts on

2022

impacts on the global environment and enhance peopleʼs
lives. In FY 2023, we are planning to begin sales of "Palpa
made with Kapok", a product which combines the kapok
plant that is indigenous to Indonesia with our companyʼsoriginal "Palpa" technology.
We will continue to develop products such as the medical
protective clothes and infection protective clothes which
support people working on the frontlines of medicine andnursing care.

functional materials that combine technologies from theuniform and sports areas.

Promotion of sustainability

We are aiming to achieve profitability through salesof environmentally friendly materials and functional materials,
and through fundamental measures to address unprofitable business areas.
Results summary and forecast
for the next year
FY 2022 saw a recovery in sales of uniforms, ladiesʼ apparel,and other products over the period of the COVID-19 pandemic.

A look back at the previous medium-term
management plan(FY 2020 to 2022)

However, we often import processed fiber and textile products

Although there was an increase in net sales in the garment

from overseas, so the negative effects of the weak yen weresector, there were large increases in import costs and other costs

felt more than in other businesses. Although we carried out

in each process of the supply chain. We were unable to coverrevisions to product prices, the lead time from contract toproduct delivery is long and the effects of these revisions did
not manifest during the fiscal year, which increased ouroperating losses.
In FY 2023, we expect the delayed effects of the pricerevisions to become visible, and to see higher net sales andoperating profit, however we expect to continue running an
operating loss.
> For FY 2022 results, see pp. 47‒48.

23

Medium and long-term strategies

Unitika Report 2023

these cost increases with price revisions, and the operating loss
grew. We have positioned sales of environmentally friendly
materials, accelerating alliances such as our collaboration with
Shikibo Ltd., and expanding global business as our three
primary areas of focus, however we are only partway along thepath to these goals.
Costs at our companyʼs plants rose as a result of soaring raw
material and fuel prices, and this remains a large issue to beaddressed.

Among the approaches to the “three types of living” thatare the Group mission, I believe that contributing to SDGs byrealizing living in coexistence with the environment is ofparticular importance in order to achieve sustained growth in
this segment. Unitika Trading Co., Ltd is the core company inthis segment, and we are working to accelerate the pace of
establishing technologies and developing products that use
environmentally friendly functional materials that reduce

Message to stakeholders
We faced diﬃcult conditions in this segment as a result ofhigh raw material and fuel prices and the weak yen. We willpersevere and steadily carry out measures including reviewing
unproﬁtable business areas, developing environmentally friendly
and functional materials, promoting sales, and strengthening
the global sales system and supply chain.
We will work to achieve proﬁtability within the period of the
new medium-term management plan, and to be a company
that is continually chosen by the stakeholders.

Development of sustainable materials in the Fibers & Textiles segment■ Environmentallyfriendly “Z-10”：Stretch ﬁber. Made environmentally friendly with the use of up to 50% recycled PET (50% virgin PET).

■ “SyLPH KF”：Lyocell material for innerwear. We process raw Lyocell ﬁbers obtained from wood pulp
using our original technology to reduce fuzzing. This helps them maintain their original
conditions even after repeated washing.

■ Environmentally friendly ：A special multi-layer yarn for shirts and uniforms. In addition to eco-friendly version of“Palpa”"Palpa", which uses recycled polyester in the core, our lineup includes "Palpa" x "Terramac"
which uses polylactic acid derived from plants.
■ Nylon56 spun ﬁber and ：A nylon staple ﬁber containing 45% biomass polymerized with a plant-derived monomer.
It features superior moisture absorption and great colors, and a unique feeling of tension.
its fabric

Unitika Report 2023

24

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Sustainability

Our policies for sustainability andPriority issues

working on are carrying out environmentally-friendly

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

then specified the priority issues (materiality).

business activities, respecting the human rights of all

We also set four items as basic matters underlying the priority

stakeholders, ensuring our employees can live a healthy

issues. These items have been approved at a management

life, preparing a work environment that is motivating andmeeting.

Process for Formulation ofPriority Issues

issues related to business, which we have set as priority

Sustainability Committee

President (Committee Chairman), Director (in charge of the Personnel& General Affairs Department and Sustainability Promotion Office),
Director (in charge of the Polymers Segment), Director (in charge ofIn December 2021, we established the Sustainability Committee

the Legal & Compliance Department, Corporate Planning Department,
and Procurement & Logistics Department), Executive Officer (in charge

as an organization for overseeing our actions going forward inof the Performance Materials Segment), General Manager of Technology

order to achieve the Unitika Groupʼs priority issues and theManagement Division, General Manager of Global Business Promotion

corresponding indexes (KPIs) and target values.

Division, President of Unitika Trading (in charge of the Fibers & Textiles

issues associated with our productsʼ values, are precisely

In specifying the priority issues, first we listed the initiatives

the Group mission for realizing our long-term vision. We

the Unitika Group is already working on to achieve a sustainable

The committee chairman is the Representative Director andare striving to resolve these issues by providing products

society. Then we referred to the SDGs goal targets and the GRI

President, Chief Executive Officer. The top management of eachthat protect people from disasters and accidents, crime,Standards, and listed the initiatives to tackle going forward.

department, such as officers in charge of each segment, also

Segment)■Frequency of meetings：
Once a year or moredamage to health and other incidents, products that are

After grouping these initiatives, we identified as issues thoseparticipate in the discussions as committee members, so thatcompatible with digitalization and diversifying lifestyleinitiatives we should achieve by the SDGs target year of 2030.

we can move forward with our initiatives at a companywide■Contents of discussions：level.

habits, and products that help reduce CO2 emissions,

We then verified the risks and opportunities of each of these

conserve resources, and prevent environmental pollution.

issues and their positioning on the value chain, and narrowed

The details of the discussions at the Sustainability Committee

The five priority issues related to corporate activities aredown the important items. Finally, we organized these items on

are reported to and approved by the Board of Directors. The

various issues that we should consider when carrying out

a matrix along two axes, one for their importance to stakeholders

committee members oversee all activities, and also take theour business activities. Specifically, the issues we are

and the other for their importance to the Unitika Group, andlead in driving forward initiatives as KPIs managers.

● Adequately assessing the Unitika Groupʼs priority issues andcorresponding targets, KPIs, and target values● Managing the progress of KPIs, and drafting measures for promoting
KPIs● Reviewing sustainability-related matters such as policies forsustainability

Priority issue specification process

Priority issue matrix

The sustainability policy of the Unitika Group

Creation of a candidate item list

Contributing to the SDGs

Our policy
for sustainability
Specify

with the “three types of living” approach

Desired Image (Long-term vision)

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

Identification of important items
Identify by verifying the risks and opportunities,
and the positioning on the value chain.

● Diversity● Realizing safe and secure living● Realizing convenient andcomfortable living● Realizing living in coexistencewith the environment● Promoting corporate activities incoexistence with the environment● Supply chain management● Employee engagement

Assigning order of priority and organizing
Organize these items along two axes,
one for their importance to stakeholders and the other for
their importance to the Unitika Group.

We are aiming to be a “company
that is continuously chosen by customers.”

Unitika Report 2023

Business-related priority issues● Human rights

Importance to stakeholders

Contributing to society byconnecting peopleʼs lives and technology

Group Mission

Extremely
important

Create a list referring to materials including SDGs,
GRI standards, and other international guidelines.

Our
Philosophy

25

To achieve the Unitika Groupʼs priority issues and corresponding
targets, KPIs, and target values.
■Members (8)：satisfying for a diversity of personnel, and detecting andavoiding risks in the supply chain.

■Goal：

Important

Importance to the Unitika Group

Extremely important

Basic matters underlying the priority issues

Approval at a management meeting● Complianc● Strengthen governance● Ensure product safety and quality● Promote digital transformation

Unitika Report 2023

26

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

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.
The new medium-term management plan G-STEP30 2nd that was announced in May 2023 organizes the priority issues from the perspectives of Prosperity, Planet, and People.

Priority issues

Realizing safe andsecure living

Responsible person

FY 2022
actual results

KPIs

FY 2025 targets

FY 2030 targets

Relevant products and measures

Relevant SDGs

Renewalmonth/year• Overseas development of food packaging
barrier films• Marketing of materials for natural disasterprevention/response

Masakazu Kitano
Director, Managing Executive Officer
In charge of the Polymers Segmen

Hirokazu Taketoshi
Managing Executive Officer
In charge of the Performance Materials Segment

Prosperity

Realizing convenient andcomfortable living

Katsuhide Kyunai
Managing Executive Officer
Officer in charge of Government Supplies Department andPresident, Representative Director of Unitika Trading Co., Ltd.
In charge of the Fibers & Textiles Segment

Realizing living in

Minoru Fujii

coexistence with the

Senior Executive Officer
General Manager of Technology Management Divisionenvironment

PlanetPromoting corporate activities
in coexistence with theenvironment

Minoru Fujii
Senior Executive Officer
General Manager of Technology Management Division

Eiji Sumi
Human rights

Director, Managing Executive Officer
In charge of Personnel & General Affairs Department andSustainability Promotion Office

Minoru Fujii
Senior Executive Officer
General Manager of Technology Management Division

Employee engagement

Eiji Sumi
Director, Managing Executive Officer
In charge of Personnel & General Affairs Department andSustainability Promotion Office

PeopleDiversity

Eiji Sumi
Director, Managing Executive Officer
In charge of Personnel & General Affairs Department andSustainability Promotion Office

Net sales of materials
that contribute to the
SDGs with the“three types of living”

1.0 times relative to

1.6 times relative to

2.6 times relative to

FY 2019 level

FY 2019 level

FY 2019 level

Director, Senior Executive Officer
In charge of Legal & Compliance Department,
Corporate Planning Department, and Procurement &Logistics Department

Enacted inJuly 2022• Use of recycling within plants anda mass balance approach• Developing the market for environmentallyfriendly food packaging films

CO2 emissions(All domestic Group
companies)

26% reduction relative to
FY 2013 level

24% reduction relative to
FY 2013 level

46% reduction relative to
FY 2013 level• Install energy-saving equipment• Studies for the introduction of credits

Enacted inJuly 2021

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

11% reduction relative to
FY 2019 leve

8% reduction relative to
FY 2019 level

10% reduction relative to
FY 2019 level• Introduce equipment for reducing industrial
waste• Strengthen recycling of industrial waste

Enacted inJuly 2021

Implementation rate ofhuman rights-related
93% (domestic)
education (entire Group,
including overseas companies)

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

20%(Implemented once
throughout the entire
Group over five years)• Unitika Human Rights Policy

Enacted inJuly 2022

Number of accidents causing
lost work time (All domestic
Group companies)

5

0

0

• Strengthen the intrinsic safety of
manufacturing equipment• Review utilities

Enacted inJuly 2021

Certification as an Excellent
Health and Productivity
Management Organization(Unitika Ltd. and someGroup companies*)

Acquire certification

Acquire certification①Acquire certification②White 500• Unitika Health Management Declaration

Enacted inJuly 2021

Ratio of women at the
management level(entire Group, including
overseas companies)

5.4%

8%

20%

Revised in
December 2021

Ratio of female new recruits
working at the head office(Unitika Ltd.)

29%

30%

30%

Enacted inJuly 2022

Implementation of annual
review of the pools ofcore human resources(Unitika Ltd.)

53%(Unitika Ltd. and someGroup companies*)

50%

50%

Response rate of CSR
procurement survey(Main business partners andclients)

ー

100%

100%

CSR procurement survey

87%

80%

80%

• Unitika Diversity Management Policy

Tsunetoshi Matsuda
Supply chain management• Entry into the market for digital relatedmaterials• Expanding sales of materials related to
semiconductors• Expanding sales of water purification filters

Enacted inJuly 2022

Enacted in
January 2023

• Purchasing Policy• CSR procurement survey

Enacted inJuly 2021* Five companies: Nippon Ester Co., Ltd.; Unitika Trading Co., Ltd.; Unitika Textiles Ltd.; Unitika Glass Fiber Co., Ltd.; Unitika Garment Technology Co., Ltd.

27

Unitika Report 2023

Unitika Report 2023

28

Introduction

Value Creation
Strategy

ESG

E Environmentally Friendly Materials

E Medium-Term Environmental Plan

Biomass Materials

Ninth Medium-Term Environmental
Plan (FY 2021 to FY 2022)

Environment

Environment

original compounding technology.

“Castlon”“Castlon” is a 100% biomass material of environmentally-friendly
polyamide (nylon 11), which is made from castor oil (ricinoleic acid)extracted from the seeds of the non-edible castor oil plant (ricinus).
It is a lightweight material with excellent wear resistance. This makes“Castlon” suitable for use in various applications including sportswear,
outdoor wear and other clothing materials, as well as materials for shoes.

Impeller made using“XecoT”

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

Financial andCorporate Information

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

The volume of processed industrial waste products and CO2
emissions from energy generation that have been managed in
the Medium-Term Environmental Plan so far have also been
managed as KPIs of priority issues in the Sustainability Plan of themedium-term management plan. Accordingly, in FY 2023,
we reset the period of the new Tenth Medium-Term Environmental
Plan to be the same as the period of the medium-term
management plan, and also linked the targets with the KPIs foreasier management. The actual results of FY 2022 are evaluatedrainfall after an extremely short rainy season.

（t）

Production sites

Unitika provides a three-dimensional cubic knitted textile composed

7,138
1,313

1,395

Amount of industrial waste disposed of outside the plants(All domestic Group companies)
FY 2030 target: 6,621 t(10% reduction relative to the FY 2019 level)
FY 2022 actual results: 6,569 t(11% reduction relative to the FY 2019 level)Group companies

7,358

7,280

Three-dimensional knitted textile

KPIs of Priority Issues (Materiality)

Improvement of specific energy consumption (SEC)(index of FY 2018 as 100)Volume of processed industrial waste products

Energy-Saving Materials

based on the Ninth Medium-Term Environmental Plan.

6,569

6,884
1,187

740

1,208

103.8

of monofilament connecting fibers with a multifilament and spun

95.1

yarn front-and-back cloth structure and moderate stiffness. It is used
Eco-bag madeusing “Castlon”“Terramac” is a biomass material made using polylactic acid (PLA),

6,045

5,885

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

6,144

5,951

5,361

material that is soft on the body, and has good air permeability.
Bedding made using this textile does not easily trap heat or moisture(humidity), so you can sleep comfortably even during summer.

“Terramac”

98.7

100.9

100.0

2018

2019

2020

2021

(Fiscalyear )

2022

2018

2019

2020

(Fiscalyear )

2022

2021

Structure of three-dimensional knitted textile<Honeycomb structure>

which is made from plant-derived sugars. It has a wide range ofAir
permeability

applications 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.

Heat radiation
Moisture desorption(Surface)(Side, Zoomed in)

Air recycling(Image diagram)

Rate of recycling

Energy consumption volume (crude oil equivalent)

（%）

（ML）

87.3

Production sites

151

87.8
85.9

85.9

22

84.9

“Thermotron RadiPoka”

Group companies

144

129

143

139

21

123

17

17

122

126

136

17
119

“Thermotron RadiPoka” demonstrates a high level of heat retention
performance through the synergy effects of energy from sunlight andfar-infrared rays. By fusing light-absorbance and heat-conversion
Tea bags madefrom“Terramac”“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 invarious grades when combined with other resins using ourfunctional material and far-infrared ray radiation functional material

2018

2019

Unitika Report 2023

2021

2022

(Fiscalyear )

2018

2019

2020

2021

2022

(Fiscalyear )

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

Ninth Medium-Term Environmental Plan (FY 2021 to FY 2022)

radiation of far-infrared rays.
IssuesReference FY

Baseline values

Target values

Improvementtargets for eachreference FY

FY 2022
actual results

Evaluation
results

Reduction of the amount of industrial
waste disposed of outside the plants

FY 2019

7,358t

7,063t3% reduction

6,569tAchieved

84.9%

Not achieved

Improvement of recycling rate
Reduction of energy consumption
volumeImprovement of specific energy
consumption (SEC)
CO2 emissions reductions

29

2020

FY 2019

88%

89%

1 point
improvement

FY 2018

151ML

142ML

5% reduction

136ML

Achieved

FY 20180.759 L/kg

0.736 L/kg

3% improvement

0.749 L/kg

Not achieved

FY 2015

489kt/yaer

220kt/yaer

55% reduction

263kt

Not achieved

Unitika Report 2023

30

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

E Climate Change
Environment

Disclosure Based on the
TCFD Recommendations

Strategies

GovernanceAt least once a year, the Unitika Board of Directors receives
a report from the Sustainability Committee on sustainability-related matters including actions for climate change. The
Board of Directors also monitors the progress status of the
KPIs of Unitika Groupʼs priority issues, and incorporates thefindings into the medium-term management plan.

The Unitika Group recognizes the following items as importantrisks and opportunities related to climate change. We willconduct even more in-depth scenario analyses, while selecting
the target businesses and application areas in Unitika Group.
Furthermore, we will review the risks and opportunities as
required, as we gradually expand the range of information
for disclosure.
Identifying Risks and Opportunities
We have identified the main short-, medium- and long-term

Risks & Opportunities/Financial Impact/Main Action Category＊１Category

CauseStrengtheningof GHG emissions
regulations

Businesses impact

Rise in the prices of energy andraw materials due to the introductionof carbon pricing

Regulation
Strengthening of
regulations on
processing waste
products

Decline in laminated products

Financial impact

Increase inoperating costs
Increase inprocurement costs

Decrease in sales

Main action

Make the manufacturing
process more efficient
Reduce total greenhousegas emissions
Consider the use ofrenewable energy
Develop environmentally-responsive materials
Set up a system for processing

Time
axis

＊2
All

Decrease in sales

Technologies

Development ofa circular economy
and decarbonizedsociety

Increase in the burden to develop
environmentally-responsive(circular economy) technologies

Increase in researchand development costs

Make the processes todevelop technologies more
efficient

Mediumterm●

Evaluation

Changes in
evaluation in
the market

Decline in corporate value due to aworsening brand image, and exclusionfrom investment targets

Increase in capital costs

Enhance information disclosure
Formulate a long-term
environmental roadmap

Long
term

●

Disaster-related damage
to the Unitika Groupʼs plants

Increase in recovery
and restoration costs

Short
term

●

Acute

Increase in
climate-related
disasters(floods anddroughts, etc.)

Short
term

●

●

Chronic

Products
Opportunities andservices

Increase in
climate-related
disasters

Developmentof a circular
economy anddecarbonizedsociety●

Decrease in sales

Rise in insurance costs due to a global
increase in insurable events and related claims

ncrease ininsurance costs

Long
term

Increase in demand for biomass-derived
materials and recycled materials

Increase in sales

Mediumterm●

Increase in demand for products that
contribute to a reduction in food loss and waste(gas barrier films, etc.) Increase in sales

Increase in sales

Mediumterm●

Strengthening of subsidized businesses associatedwith the development and implementation ofenvironmentally-responsive materials

Decrease in capital
costs

Develop new products
and strengthen measures
to expand sales

Utilize various subsidized
businesses

Short
term

Unitika Report 2023

Below 2°C

・IEA WEO 2022 APS・Various materials,
such as SSP 1-2.6 and RCP 2.6

4°C

・IEA WEO 2022 STEPS・Various materials,
such as SSP 5-8.5 and RCP 8.5●

IEA: International Energy Agency
WEO : World Energy Outlook
APS ：Announced Pledges Scenario
STEPS：Stated Policies Scenario
SSP : Shared Socio-economic Pathways
RCP : Representative Concentration Pathways

Scenario Analysis ① (Opportunities)
Increase in Demand for Recycled Plastics

Suspension in the delivery of raw materials
and parts, etc. due to disaster-related damage
to the plants of business partners*1 Time axis (period until the risks and opportunities manifest) Short term: Around 2025 Medium term: Around 2030 Long term: Around 2050
*2 All (common risks and opportunities in all segments)*3 Polymers/Lifestyle (risks and opportunities unique to the lifestyle and safety areas that are the main applications of products in the Polymers segment)31

Set scenarios(of a rise in the global average temperature)●

Mediumterm

MarketCarry out risk management
and a planned response
Implement disaster readinesstraining

We analyze the set scenarios of (a rise in the global averagetemperature of) below 2 C and 4 C on themes in the list of
climate-related risks and opportunities that are evaluated as
being of high importance for the Unitika Group, taking into
consideration the impact on businesses, relevance to businessstrategies, and interest level of stakeholders, etc. Listed
below are the results of a scenario analysis review. We also
recognize the physical risks of a 4 C scenario as mainly being
floods and droughts, etc. We will continue to verify andevaluate these risks.

●Develop businesses andMediumnew products that contributeto realizing living in coexistence termwith the environment

Physicalrisks

Implementation of Scenario Analysis

Scenarios Used
Mediumterm

Decrease in the demand for
Unitika products due to theDevelopment ofa circular economy switch to a low-carbon consumptionstyle (returnable containers, etc.)
and decarbonized
and a fall in the demand for materials with asociety
substantial environmental impact

Transition
risks

＊3
Polymers/Lifestylerisks and opportunities in the Unitika Group that are related toclimate change, and organized them in the table below. Thisfiscal year we have identified the relevant risks and opportunities
common to all businesses, as well as identifying the unique risks
and opportunities of the lifestyle and safety areas that are themain applications of products in the Polymers segment, which isone of the three segments of the Unitika Group.

<Impact Assessment>
As for the volume of petroleum used in the chemical sector
in a below 2 C scenario, although the amount used for fuelis expected to decrease, the amount used for plastic raw
materials is assumed to increase as per in the 4 C scenario.
In either scenario, the demand for plastics derived frompetroleum resources is forecast to continue going forward.
Also within this, the volume of recycled plastics used is
expected to increase in either scenario of below 2 C and 4 C,
with a particularly large increase anticipated in the below
2 C scenario. As the move toward a circular economy anddecarbonized society progresses, the demand for recycledplastics is forecast to increase going forward.
<Action Strategies>
In addition to the traditional businesses of fibers andresins, we are strengthening the food packaging films“Emblem CE” and “Emblet CE,” which are made using
recycled materials obtained from chemical recycling andmaterials recycling methods.

Scenario Analysis ② (Opportunities)
Increase in Demand for Products thatContribute to a Reduction in Food Lossand Waste<Impact Assessment>
The overall global demand for food is expected to rise going
forward, and the issue of food loss and waste is anticipated to
become increasingly important.
As for trends in the reduction of food loss and waste, the Foodand Agriculture Organization of the United Nations(FAO)
monitors the ratio of food loss and waste worldwide.
The Sustainable Development Goal (SDGs) 12.1 of “Ensuresustainable consumption and production patterns” has set thetarget 12.3 of “By 2030, halve per capita global food waste at
the retail and consumer levels and reduce food losses alongproduction and supply chains, including post-harvest losses.”
As society strives to achieve the SDGs, the demand for
products that contribute to a reduction in food loss and waste
is expected to keep rising going forward.
<Action Strategies>
As we accelerate the development of high value-added
products such as the barrier nylon film “Emblem HG”, we arealso strengthening the expansion of sales in overseas markets
where the issue of food loss and waste is anticipated to
become increasingly important.

Risk Management
In 2020, the Unitika Group launched the Sustainable
Business Promotion Project, which comprises all membersof top management in the departments, including officers incharge of each segment. These members evaluate issues
along two axes on a matrix, one for their importance tostakeholders and the other for their importance to the
Unitika Group. They then identify the priority issues, andcategorize them into risks and opportunities. One of thesepriority issues is to “promote corporate activities in coexistencewith the environment,” which also includes climatechange-related risks. The Sustainability Committee evaluates
the reasonableness of these risks as required, and reports to
the Board of Directors on newly identified risks, including
those related to climate, if they are determined to be important.

Indexes and Targets
In 2021, the Unitika Group established indexes and targets
for priority issues. The Unitika Group recognizes CO2
emissions as a climate change-related risk, and we are using
the CO2 emissions from all domestic production sites(Scope 1 and Scope 2) as an index for this risk. We are aiming
for net zero carbon emissions by FY 2050, with the target ofa 46% reduction (relative to the FY 2013 level) in CO2emissions by FY 2030. We will also start calculating CO2
emissions from overseas production sites and Scope 3 CO2emissions from the supply chain (excluding Unitika), as we
strive to make further reductions in CO2 emissions.

Unitika Report 2023

32

Introduction

Basic Concept &CO2 Emissions Reductions Activities
The Unitika Group has been carrying out environmental
preservation activities for over 50 years, with the action
guidelines of making sure there is no harmful impact on the
global environment during the manufacture of our products.
From early on, Unitika has been focusing on reducing
greenhouse gas emissions, such as by being a leader among
other companies in installing a gas cogeneration system in our
production sites (FY 2004 at the Uji Plant, and FY 2006 at the
Okazaki Plant).
We have also set yearly reduction targets in the Medium-Term
Environmental Plan, which we keep in mind as we continue
with our reduction activities. In July 2021, we set a FY 2030
target in the Sustainable Business Promotion Project of a 46%
reduction in CO2 emissions (Scope 1&2) from all domestic
production sites relative to the FY 2013 level. We are aiming fornet zero carbon emissions by 2050. The Sustainability Committee
manages the progress of measures for CO2 emissions reductions,and reports its findings to the Board of Directors.

Reduction of CO2 Emissions Related toBusiness Activities (Scope 1&2)
Every year, the Unitika Group calculates and reports on thefollowing CO2 emissions: Scope 1, which are direct CO2
emissions from the use of gas and other energy sources at
Unitika production sites; Scope 2, which are indirect CO2
emissions from the use of electricity, heat, and steam supplied
from other companies.
In FY 2022 we expanded the types of greenhouse gases forcalculation to include non-energy-derived greenhouse gases(6.5 gas) in Scope 1. We also recalculated all data since FY 2013
to include non-energy-derived greenhouse gases, and weamended the actual standard value and target value of the KPIof CO2 emissions to values that include non-energy-derived
greenhouse gases. We have kept in place the FY 2030 target ofa 46% reduction in CO2 emissions (Scope 1&2) from all
domestic production sites relative to the FY 2013 level.
The CO2 emissions of all domestic production sites (including
the head office and business offices) in FY 2022 was 263

TOPIC

kt-CO2e in total for Scope 1 and Scope 2. The reduction ratewith FY 2013 as the standard year, which is the same as thecurrent government target, is 26%. We are moving ahead withvarious measures, including updating energy-saving equipment,
as we work toward achieving the 46% reduction target.
The CO2 emissions of all overseas production sites in FY 2022
was 63 kt-CO2e in total for Scope 1 and Scope 2. The reduction
rate, with FY 2018 as the standard year, is 8%.

KPIs (FY 2030 targets) of Priority Issues (Materiality)
CO2 emissions (All domestic Group companies)*
FY 2030 target: 193 kt-CO2e(46% reduction relative to the FY 2013 level)
FY 2022 actual results: 263 kt-CO2e(26% reduction relative to the FY 2013 level)* Includes non-energy-derived greenhouse gases.

CO2 Emissions (Scope 3)
from the Supply Chain (excluding Unitika)
In FY 2022, we started calculating the CO2 emissions of Scope
3*. The organizational scope in Unitika Ltd. is calculations done
for nine out of the total 15 categories. The organizational scopeis Unitika Ltd., and calculations were done for nine out of thetotal 15 categories. The result confirmed emissions of 586
kt-CO2e.The details are published on the Unitika Website.
*1 This is the total of CO2 generated from the supply chain (from theprocurement of raw materials to the disposal of final products) related to
Unitikaʼs businesses, excluding Scope 1 and Scope 2.

Reduction of CO2 Emissions in Logistics
Unitika undertakes a variety of efforts to reduce the environmental
impact associated with the delivery and emission of raw
materials, products, waste, and other materials. These include
promoting the shift of cargo transportation modes to moreenvironmentally-friendly methods (modal shifts), and streamlining
transportation to improve efficiency. As a specified consignor,
Unitika reported 53,672 kt-km of freight and 19.0 kt of CO2
emissions (28% reduction relative to the FY 2013 level) to thegovernment in FY 2022. Unitika will strive for eco-friendly
logistics within the whole group by implementing a variety ofpractices. These include but are not limited to: expanding theuse of trains, promoting idle stops, and the use of ecological tires.

Unitika Glass Beads Co., Ltd. acquires the S (excellent energy saving) rating for the fourthconsecutive year, in the Business Operator Classification Evaluation System of the Energy Saving Act

https://www.enecho.meti.go.jp/category/saving̲and̲new/saving/enterprise/overview/institution/(The Business Operator Classiﬁcation Evaluation results are published on the website of the Agency for Natural Resources and Energy.)

Unitika Report 2023

Financial andCorporate Information

Society

The Ministry of Economy, Trade and Industry has awarded Unitika Glass Beads Co., Ltd., a generalmanufacturer of glass beads, the S (excellent energy saving) rating for the fourth consecutive year for
its actual results from FY 2018 to FY 2021, in the Business Operator Classification Evaluation System(SABC Evaluation System) of the Act on Rationalizing Energy Use (Energy Saving Act). All employees
will continue working together on energy-saving effortsgoing forward, as a business operator(that achieves its targets) with excellent energy-saving initiatives.

33

ESG

S Human Capital

E Climate Change
Environment

CO2 Emissions Reductions

Value Creation
Strategy

Human Rights
Unitika Human Rights Policy
In July 2022, the Unitika Group established the Unitika Human
Rights Policy.As a member of the Corporate Report Associationof Human Rights Issue, Unitika has been working extensively
on human rights issues in a variety of ways, such as by gathering
educational information on raising awareness of human rights.
We are aware that the world is becoming increasingly consciousof human 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 connected withour businesses in accordance with the United Nations Guiding
Principles on Business and Human Rights.

Implementation of
Human Rights-related Education
Under the idea that “UNITIKA shall manage itself in such a
way that the human rights of all people are respected,” asspecified in the Unitika Group Charter of Corporate Behavior,
the Unitika Group is working towards human rights awarenessby setting up a human rights awareness promotion
organization and conducting in-house human rights training
for our employees including the Representative Director andPresident, Chief Executive Officer, executives, and thepresidents of Group companies. We have set up support desks at
our production sites and Group companies for consultations on
sexual harassment, power harassment, maternity harassment,
and other forms of harassment related to pregnancy, childbirth,child-rearing and nursing care, with the aim of raising the levelof awareness and recognition of our employees. We will carryout human rights education as appropriate, and familiarize
Unitika employees in Japan and overseas with the Unitika Human
Rights Policy so that they will have a deeper understanding ofrespecting the human rights of all stakeholders.

KPIs (FY 2030 target)of Priority Issues (Materiality)
Implementation rate of human rights-related education(entire Group, including overseas companies)
FY 2030 target: 20% (implemented once throughout theentire Group over five years)
FY 2022 actual result: 93% (domestic)

Human Rights Due Diligence
At Unitika Trading Co., Ltd, which is a core company in the
Fibers & Textiles segment, we have identified the humanrights-related risks in the garment fibers supply chain, and have

set up due diligence mechanisms to reduce and respond to
those risks. We identify the Unitika Groupʼs negative impacts onhuman rights in society, and correct and lessen these
impacts.Based on the Guidelines for Responsible BusinessConduct in the Textile and Apparel Industry published by theJapan Textile Federation (JTF) in July 2022, we have been
carrying out evaluations using check lists and making the
supply chain more visible. We have identified issues such as theneed to understand the risks in the supply chain and the needfor a complaints handling desk that can also be used bybusiness partners and clients in the event of a human rights
violation. Although we have an understanding of the positioningof the primary supply chain in the commercial distribution
channels, we recognize once again the difficulty in understanding
the peripheral commercial distribution channels. We willcontinue to take action to prevent and reduce the risks we haveidentified, and to correct and lessen their impacts.

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

Promote Diversity
In July 2022, the Unitika Group enacted the Unitika Diversity
Management Policy. We are promoting diversity management
and utilizing a variety of personnel to create new value.

Promotion of Womenʼs Participation
Training, and Reforming the Way of Thinking
In order to promote diversity, and particularly womenʼsparticipation in the workplace, we feel it is critical to reform thecorporate culture. Based on this mindset, in addition to training
sessions for management (including officers), we are holding
career development training for women and selective training
aimed at female office workers and their superiors as a part ofour efforts to raise motivation and support the careerdevelopment of women in the workplace. Through thesecontinuous efforts, we will move forward with reforming theway of thinking and raising the rate of womenʼs participation in
the workplace at the management level.

Unitika Report 2023

34

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

S Human CapitalSociety

Recruitment, Assignment, and Training and Education
For the employment of new graduates, we have set a numericaltarget for the ratio of female new recruits (career position) working
at the head office, and we are implementing fair recruitment activities
in compliance with the Employment Selection Guidelines issued
by The Ministry of Health, Labour and Welfare. We have also set
up the Return Employment System so that if a full-time employee
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 to work,that person has the chance to come back and work for Unitika,
based on the mutual desire of both the individual and the company.
Number and ratio of females at the management level(March 31, 2023 Unitika Ltd.)
Number of people

Ratio (%)

27

5.4

Females at the
management level

Number of new employees (FY 2022 Unitika Ltd.)
Number of people
Number of
new employees
Head office
employees
Production site
employees
Mid-career recruits

Female

Male

Total

Ratio offemales
(%)

13

58

71

18.3

9

22

31

29.0

4

32

36

11.1

0

4

4

0

KPIs of Priority Issues (Materiality)
Ratio of women at the management level(entire Group, including overseas companies)
FY 2030 target: 20%
FY 2022 actual result: 5.4%
Ratio of female new recruits (career position) working!
at the head office (Unitika Ltd.)FY 2030 target: 30%
FY 2022 actual result: 29%

Promoting a Variety of Work Styles
Acceptance of Diversity
In the training we conduct at the time new recruits join thecompany and in level-specific education, we are fostering an
understanding of how using diversity in Unitika can enhance
the Unitika Groupʼs power, by accepting and recognizing theindividual differences among employees, including employees
who are currently child rearing or caregiving, or who are recoveringfrom an illness, have disabilities, are from overseas, identify
as LGBTQ+, or are young or elderly. We are also actively
accepting graduates from special-needs schools in the local
communities and students from training schools as a part ofour efforts to promote the employment of people with disabilities.
By providing a place of employment, we are not only contributing
to local communities, but also creating an environment where
each individual with disabilities can demonstrate their abilities

35

Unitika Report 2023

as a part of our organization and also giving employees the
chance to develop an understanding of diversity.

Work-life Balance
In order to promote the balance between employeesʼ workand private lives, we have implemented “no-overtime days”
and introduced child-rearing leave, postnatal maternity
leave, time off for sick/injured childcare, and time off for
caregivers, all exceeding the 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 have also introduced shortened
work hours for child-rearing, which is a system whereby
employees with children who are 3 or older but have not completed
the 3rd grade in elementary school can reduce their work
time by one hour. Additionally, we are promoting the takingof child-rearing leave by male employees. And to further
support a variety of work styles, we are preparing a flex-timesystem for some departments, as well as promoting remote
work (working from home) and promoting decent work.
Ratio of taking leave for child rearing (child-rearing leave, etc.)*
Male
Number of Ratio taking
peopleleave (%)

FemaleNumber of Ratio taking
peopleleave (%)

FY 2018

7

15.2

11

110.0

FY 2019

3

6.1

10

100.0

FY 2020

3

8.1

5

100.0

FY 2021

15

36.6

10

111.1

FY 2022

19

52.8

8

66.7

* Tally of leave taken on a FY base
Ratio of women taking child-rearing leave (%) =(Number of female employees who have taken child-rearing leave
female employees who have given birth) x 100
Ratio of men taking child-rearing leave (%) =(Number of male employees who have taken child-rearing leave
Number of male employees whose spouse has given birth) x 100

Number of

KPIs of Priority Issues (Materiality)
Ratio of men taking child-rearing leave(All domestic Group companies)
FY 2030 target: 50%
FY 2022 actual result：53%(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.

Human resource development and Creatinga Pool of Core Human Resources
Setting Up an Education System
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. In the off-the-job

training (OFF-JT) that complements OJT, we are enhancing
level-specific education, function-specific education, and the
Global Human Resources Education Program.

technologies, and ultimately create a pool of digitaltransformation (DX) personnel by training and educating and thenselecting leaders who will drive forward work improvements
and innovation and that can solve company-wide issues.

Education and Training-related Results (FY 2022)
Education investment/person (*)

31,865 yen

KPIs of Priority Issues (Materiality)

Education time/person

8.8 hours

Total number of participants

12,866 people

Implementation of annual review of the pools ofcore human resources

Total training time

20,843 hours

FY 2030 target: 100%
FY 2022 actual results: -* Education investment/person = Total education investment /(Employees at all domestic Group companies + Employees posted overseas)

Personnel Training & Education andCreating a Pool of Core Human Resources

Create and Maintain an
Organizational Culture & Environment

We are working on creating a pool of core human resources
who will become next-generation leaders that will raise
Unitikaʼs corporate value. This includes establishing, training
and educating a pool of human resources in specific levels andareas, conducting regular evaluations, formulating individual
training and education plans, and aiming for a 100% implementationof annual reviews of assignments. We will set up three poolsof human resources: management personnel as candidates
for future management, production executive personnel ascandidates for middle-ranking executives at production
sites, and digital transformation (DX) personnel to promotereforms and innovations using digital technologies. We willthen select personnel with the potential required in each ofthese pools of human resources, and train and educate themso we can create a pool of highly-engaged personnel. The
management personnel pool will include the top managementfrom domestic and overseas sites. We will select personnel basedon their competence corresponding to their job responsibilities,
and not be constrained by seniority and past evaluations. We
will also provide opportunities for employees to attend externalbusiness schools to acquire practical business skills, and report
regularly to the Representative Director and President, Chief
Executive Officer on the status of appointments, transfers,
and training etc. to share annual review information. We will
also link the management personnel pool to the succession
plan for future CEOs.
For the production executives personnel pool, we will selecttop-performing production site employees who have completed
the on-site training for young technicians that is implemented
over three years after joining the company, and also outstanding
candidates for the training and education we have carriedout so far to improve technical skills. In addition to OFF-JT
and OJT that emphasize the technologies to solve on-siteissues using QC methods and technical proficiency, we will
implement programs that focus on the “people” skills requiredby leaders who will eventually become production executives.
In the DX personnel pool, we will train and educate personnel
who will reform and innovate Unitika Groupʼs organizational
culture and help us to achieve sophisticated digital transformation,
as well as expand the base of IT personnel and the active
participation of female employees. Using an online learning
platform for continual reskilling, we will start by supporting
employeesʼ efforts to independently study about digital

Revitalize the Organization Using CFT
In order to expand the base in IT education and cultivate aculture where diverse personnel respect each other and growtogether, we will use the activities of cross-functional teams (CFTs)
to break down the vertical organization structure and provide
employees with a workplace that can clearly and extensively viewcompany-wide issues. We will set applicable knowledge levels
each with four levels of attainment targets for applying what
students have learnt from the training and education of personnel.
Level 0: Knowledge input, Level 1: From knowledge to application,
Level 2: From application to making work improvements, Level 3:
From work improvements to innovations. The highest Level 3 will
be a program for the training and education of next-generation
leaders in project teams who have the skills and capabilities tosolve issues.

Personnel Evaluation System and Rotation
We have developed a range of training and education programs
to enable employees to work on their personal growth whiledeveloping their careers and improving their abilities, with ahigh degree of motivation and an ambitious mindset. By
systematically and continuously implementing these programs,
we are aiming to enhance our corporate competitiveness.
Unitikaʼs personnel evaluation system is designed to provide amore accurate understanding of the roles employees expect tofulfill and clarify the targets for developing skills and capabilities,
and to provide more impartial evaluations of the individuals
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 are also given twice-yearly
performance evaluations in accordance with the Companyʼstarget management system. These evaluations are linked to pay
raises, promotions and bonuses. We will use reliable feedback
from superiors about the evaluation results to help employees
develop their skills and capabilities going forward. We are also
implementing a personnel rotation system to enable the careerdevelopment of each employee, to create synergy amongorganizations, and to lead to better business opportunities andcorporate performance. We are working to make the system more
effective while also taking into consideration various factors suchas the allocation preferences they have personally applied for.

Unitika Report 2023

36

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

S Supply Chain Management /Local Environmetal Improvement
Society

Employee Engagement
The Unitika Group has set “employee engagement” as a priority
issue of sustainability, and we are implementing various
measures to achieve this goal.

Employeesʼ Health
Certification as an Excellent Health andProductivity Management Organization
In July 2022 we established the Unitika Health Management
Declaration, and we are implementing Health and productivity
management ®*1 under the direction of the Representative
Director and President, Chief Executive Officer. In recognitionof Unitika Groupʼs ongoing efforts to promote measures formental health and lifestyle-related diseases, part*2 of theUnitika Group received certification as an Excellent Healthand Productivity Management Organization in March 2023.
We will continue to work with companies, industrial doctors,
health management staff, health insurance societies and otherorganizations to further enhance the health management of
employees, including raising the rate of participation in thespecific health guidance program and lowering the rate ofsmoking. We are working to acquire White 500 certification
by 2030, which lists the top 500 companies based on the
results of health management surveys among the certified
companies in the large-scale company division of the Excellent
Health and Productivity Management Organization certification
system.
*1. Health Management® is a registered trademark of the NPO Kenkokeiei.
*2. Unitika Ltd., Nippon Ester Co., Ltd.; Unitika Trading Co., Ltd.;
Unitika Textiles Ltd.; Unitika Glass Fiber Co., Ltd.;
Unitika Garment Technology Co., Ltd.

KPIs of Priority Issues (Materiality)
Certification as an Excellent Health and Productivity Management
Organization (Unitika Ltd. and some Group companies*1)
FY 2030 target: ① Acquire certification ② White 500
FY 2022 actual result: Acquired certification*1 Nippon Ester Co., Ltd.; Unitika Trading Co., Ltd.; Unitika Textiles Ltd.;
Unitika Glass Fiber Co., Ltd.; Unitika Garment Technology Co., Ltd.

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
their health, before they become middle-aged and older.

Infectious Disease Prevention Measures
We administer influenza vaccinations to employees at eachproduction site, and take measures to prevent employees
from developing influenza and having it progress into a serious
case. During the COVID-19 pandemic, we strengthened ourefforts to provide a safe and secure workplace and to ensure
the continuation of business activities, such as implementing
telework and taking measures to prevent the spread of infections.

Return Support Guidelines
We have established “Return Support Guidelines” to allow

37

Unitika Report 2023

KPIs of Priority Issues (Materiality)

Number of accidents causing lost work time(number)

Response rate of CSR procurement survey

FY 2030 target: 0

FY 2030 target: 80% (Main business partners and clients)

FY 2022 actual results: 5

FY 2022 actual results: 87.4%

Supply Chain Management
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

Safety and Health Initiatives

responsible procurement practices, placing emphasis on CSR
activities. Under our purchasing policy, we will carry out supply

At the Unitika Group, the Central Safety and Sanitation
Committee is implementing health and safety activities aimed
at eliminating accidents that require time off from work at all
production sites and affiliates. We hold safety and sanitation
managers meetings three times a year for those Group
employees in charge of safety and sanitation. At these meetings,
the participants share information such as the analysis of andmeasures for industrial accidents, initiatives to addresscompanywide issues, and movements for revising laws andregulations. A series of accidents occurred one after the other in
FY 2022, and so during that fiscal year once again we carried out
general safety inspections throughout the entire Group. It willtake time to see the results of these inspections though, andregrettably there have been five occurrences of accidents
causing lost work time. As we aim for zero accidents causing lostwork time, we will continue to strengthen safety measureswhile also focusing on making our equipment safer andremoving equipment that is no longer needed.
our equipment safer and removing equipment that is no longer
needed.

Results of industrial safety and health activities
over the last 10 years

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 stresschecks every year, and implementing stress relief measures
for those with a check result of high stress levels, as a
primary preventive measure for mental health care.

KPIs of Priority Issues (Materiality)

Number of employees taking leave (people)

Rate of lost work time (%)

1.01

0.96

1.1

0.97

1.13

Supply Chain Management
The Unitika Group has set strengthening supply chain
management as a priority issue. We are familiarizing business
partners and clients with our purchasing policy, while also
periodically conducting CSR procurement surveys to check thesituation of our business partners and clients, and working withthem to improve issues in the supply chain.
In FY 2022. we conducted a CSR procurement survey on themain business partners and clients*1 of Unitika Ltd. and Unitika
Trading Co., Ltd. We are currently analyzing the survey results,
and talking with business partners and clients who haveprovided survey responses that need to be checked in particular,
so that we can identify issues in the supply chain.

Survey contents（2022）

Unitikaʼs labor union, Unitika Union, established a volunteer
fund in FY 1992 to develop a variety of domestic and international
support activities. As a project that commemorates its 30th
anniversary in FY 2003, Unitika Union started the Midori noPlan (ʻGreen Planʼ) with the purpose of social contribution andenvironmental protection in Japan. For the Midori no Plan thatspans more than 20 years, we planted Japanese chestnut oaks,
konara oaks and Japanese cypresses in a 2-hectare area
(approximately 2.5 acres) of mountain forest that has been
named Unitika no Mori, located in 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 CO2absorption 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 contributed to revitalizing
the local region by such activities as continuous interaction withthe local people and woodland preservation activities. In FY
2018, Unitika no Mori was awarded the Wakayama Prefecture
Greening Achievement Award as high recognition of its
contributions.
The Midori no Plan Season 2 started in FY 2022, and in February
2023, 25 employees planted trees at the new 2nd Unitika no Mori.
A total of 543 people have participated in the project so far. We
will continue with this project, and keep promoting the preservationof biodiversity and encouraging employees to be more aware ofpreserving and protecting the environment.

Number of respondents： 174 companies (87.4% response rate)
Survey contents：① Legal compliance② Harmony with the environment

0.77

6
0

0

2

③ Improving working environments and

0.38

0.49

4

clients.

Unitika no Mori ("Forest of Unitika") Project

Survey targets：199 companies*1

1.34

5

chain management initiatives with our business partners andInitiatives for Preserving
the Environment and Biodiversity

human rights
4

6

6
2

5

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

(Note) In FY 2023, we set the reporting range up to FY 2018 to be
all main domestic production sites, and the reporting range
from FY 2019 onwards to be all domestic production sites.

④ Product safety and quality assurance⑤ Management of chemicals
Setting relevant questions from these categories*1 Total of the business partners and clients with an 80% transaction amount in thepurchasing department of Unitika Ltd., and the business partners and clients with a
72% transaction amount in the purchasing department of Unitika Trading Co., Ltd.

Group photo at the February 2023 Midori no Plan training session

Unitika Report 20233

38

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

G Corporate Governance
GovernanceCorporate Governancea company with a Board of Auditors, and put in place auditors.
We have also introduced a voluntary executive officer system.
We 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 Group, we carry out business activities as we strive
to be a company that is continuously chosen by customers,
under our philosophy of contributing to society by connecting
peopleʼ s lives and technology. We have worked to achieve
stakeholder-focused management by pursuing stakeholder
strategies that include the enhancement of legal complianceand risk management, the timely and appropriate disclosure of
information, and the implementation of rapid decision
making. We believe this will enable Unitika to maximize
corporate value in an increasingly global environment, andcontinue to grow.

The outside directors apply their respective extensive
experience and broad knowledge to provide objective
recommendations; this enhances the transparency andintegrity of management.
The auditors (Shigeru Sugisawa, Akio Toyoda, Tetsuaki Fukuhara(outside auditor), Makoto Sano (outside auditor)) attend theBoard of Directors meetings so that they can speak up andcheck the decision-making process of management. The Boardof 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

Outside directors: 33.3%(2 out of 6)

Board of Directors

Ratio of outside officers

Female directors: 16.7%(1 out of 6)

The Unitika Board of Directors is composed of six directors:
Representative Director and President Shuji Ueno(chairman),
Eiji Sumi, Masakazu Kitano, Tsunetoshi Matsuda, Minoru
Furukawa (outside director), Noriko Ishikawa (outside director).

Structural Overview
Under the Companies Act, Unitika has adopted the system ofGovernance organizational chart

Skills matrix
General Meeting of Shareholders

Skills and experience

Appointment/Dismissal

Nominating
Committee
Remuneration
Committee* 3 members(Outside Directors: 2)

Consultation

Decisionand Supervision

Appointment/
Dismissal

Board of Directors

Appointment/Dismissal/
Supervision

AuditsInstructions

Report

Audit
OfficeCooperation
Cooperation

Management meeting
Business execution meeting
Main Committees

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

Executive Officers (11)Each division

Unitika Report 2023

Report* In addition, 4 directors serve as executive officers

Group companies

Name

Positionin the Company

Type

GenderReportJudgmentofappropriatenessAccounting audits
and Internal control audits

Accounting Auditor

Corporate
management
Management
planning* 4 Auditors(Outside Auditors: 2)

Deliberation/Report

Representative Director

Business
execution

Appointment/
Dismissal

Board of Auditors* 6 Directors (Outside Directors: 2)

Report(epresentative Director and President,
Chief Executive Officer)

39

Outside officers: 40.0%(4 out of 10)

Shuji
Ueno

Representative Director
and President,
Chief Executive Officer

Male

Eiji
Sumi

Director,
Managing Executive Officer

Male

Masakazu
KitanoDirector,
Managing Executive Officer

Male

Tsunetoshi
MatsudaDirector,
Senior Executive Officer

MaleMinoruFurukawa

Director

Outside,Independent

Male

NorikoIshikawa

Director

Outside,Independent

Female

Legal
Sales
Marketing

Finance
R&D
Risk
Accounting management Manufacturing●

Global

●
●

●
●

●
●

●
●

●
●

Sustainability
Human
resourcesandpersonnel
development

●
●
●
●

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

AuditsBoard of Auditors
The Unitika Board of Auditors is composed of four auditors:
Shigeru Sugisawa (chairman), Akio Toyoda, Tetsuaki Fukuhara(outside auditor), and Makoto Sano (outside auditor). These

auditors audit and monitor management,such as the management
policies, execution of business operations, and preservation ofproperty in accordance with standards including the relevantlaws and regulations, the Unitika Articles of Incorporation, andprovisions, etc.

Unitika Report 2023

40

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

G Corporate Governance
GovernanceNominating Committee /Remuneration Committee
The Unitika Nominating Committee and Remuneration
Committee are each composed of three directors:Minoru
Furukawa (outside director) as Committee Chairman,Shuji
Ueno, and Noriko Ishikaw a (outside director).These
committees deliberate matters concerning the appointment
and remuneration of management (executive officers) and thenomination of candidates for directors and auditors, and thenreport their recommendations to the Board of Directors(for auditor candidates, after approval from the Board ofAuditors). This is how these committees are working to ensure
the integrity and improve the transparency of mattersrelated
to executive officers and determining their remuneration.
Record of main meetings held and attendance
Meeting

Number of times held

Board of Director

17

Board of Auditors

13

Nominating Committee

3

Remuneration Committee

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

100%

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

100%

Evaluating the Effectivenessof the Board of Directors
In March 2023, Unitika conducted a survey on all directors
and auditors comprising the Board of Directors. We wereable to ensure the anonymity of the respondents by havingt hem submit thei r an s w e rs d i re c tl y to th e e x t er n a linstitutions. At the regular Board of Directors meeting heldin June 2023, we analyzed, discussed and evaluated theBoard 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.
In the previous evaluation of effectiveness, there was ashared recognition of issues such as strengthening themonitoring function of management and reviewing thetraining and education policies for core personnel. Since
then, we have seen steady progress in efforts to addressthese issues, such as initiatives for the promotion ofdiversity as a management issue, as well as following up on
management plans and implementing risk management.
There were views expressed on the ongoing strengtheningof monitoring function of management and a shift tomaking the meetings a forum for lively discussions on
management issues of the Board of Directors. Opinions were

41

Unitika Report 202

also shared on issues concerning the further enhancementof the Board of Directorsʼ functions.
Going forward, at the Unitika Board of Directors meetings,
we will take into consideration this evaluation of effectivenessand fully review the issues and then promptly take action toaddress them. We will also keep moving forward withinitiatives to enhance the Board of Directorsʼ functions.

Remuneration of Executive Officers
All Unitika executive officers are remunerated in cashpayments.
Excluding outside directors and auditors, these payments to executive
officers are comprised of position-specific fixed remunerationand performance-linked remuneration as an incentive.
Outside directors and auditors only receive fixed remuneration.
The remuneration of Unitika executive officers is determined
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 Boardof Directors. The remuneration of directors is determined by
the Board of Directors, and the remuneration of auditors isdetermined by 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, and take 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 yearʼ s 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.
Details of remuneration of executive officers
Class-specific total (million yen）

Categoryofexecutive officers

Total(million yen)

Directors(excluding outside
directors): 5

157

146

11

Auditors(excluding outside
auditors): 3

36

36

0

Outside officers: 5

39

39

0

Fixed
Performance-linked
remuneration
remuneration

The above figures include one auditor who retired upon the conclusion of the212th Annual General Meeting of Shareholders held on June 29, 2022.

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

Structural Overview
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 the corporate
framework for internal controls. Also, in addition to collecting
information within the company and the Group, which ismainly done by the Risk Management Office, we also havesystems in place to enable a timely response to matters,
including setting up a Compliance Committee andwhistleblower c o n t a c t p o i n t s w i th i n and outside thecompany.

Compliance
Unitika Group Charter of Corporate Behavior
Unitika Group Code of Conduct
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 in 2001 we
issued the first edition of the Unitika Action Standards. On April
1, 2020, we revised each document as the Unitika Group
Charter of Corporate Behavior and the Unitika Group Code of
Conduct. The Unitika Group Code of Conduct includes specificaction standards that employees should follow as a company,in accordance with the Unitika Group Charter of Corporate
Behavior. We are promoting compliance with the Unitika
Group Code of Conduct, such as by distributing the Unitika
Group Code of Conduct booklet to all executive officers andemployees in the Unitika Group, along with a card-sized
portable version that can be referred to at all times.

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 (one insideand one outside the Company) to enable employees toimmediately report any dishonest or illegal conduct they
become aware of. We respond in a timely and appropriatemanner to any consultations or notifications of such conduct.

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 to pregnancy,
childbirth, parenting and nursing care including maternity harassment,in order to detect and resolve harassment at an early stage.

Export Control
In the Unitika Group, export control managers appointed atour business sectors and Group companies carry out the
management of daily export operations under the Export
Control Committee, based on the Export Control Regulations.
Unitikaʼ 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 theDeemed Export Control enacted in May 2022, the committee
administration also provides explanations to relevant persons
within the company, revises provisions, and takes other actions
to ensure a thorough response in all areas. We are also carryingout individual training in each division, as well as training for
employees promoted to the position of person in charge, andother activities as a part of our education for employees. In FY
2022, we informed the Group of various matters including
precautions in exports to China and restrictions in exports to
Russia and Belarus.

Risk Management
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 thissystem, we are ensuring the continuity of the Unitika Group by
preventing the occurrence of risks and minimizing the loss anddamage incurred when risks occur.

Information Security Management
In accordance with the Unitika Groupʼ s Information Security
Declaration, we have established a Basic Policy on Information
Security and the internal rules for operating the policy.
Unitika has established a management and operation systemcentered around the governing body of the Information
Security Committee. This system was set up to prepare andimplement measures to prevent and respond to information
security incidents, as well as protect the Unitika Groupʼ s
information assets through education about and raisingawareness of information security.
Regarding the protection of personal information, Unitika
handles this in accordance with the laws and regulations, suchas periodically inspecting the information held and how it is handled,
and taking comprehensive measures for security management.

Unitika Report 2023

42

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

G Directors and Auditors
GovernanceDirectors
Shuji Ueno

Representative Director
and President, Chief Executive Oﬃcer,
Responsible for the Audit Oﬃce
Apr. 1983 Joined the Company

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)

Minoru Furukawa

Director (non-executive)
Apr. 1966 Joined Hitachi Zosen Corporation
Apr. 2005 Representative Director,

President of Hitachi Zosen Corporation

June 2010 Representative Director, Chairman and President of
Hitachi Zosen Corporation

Apr. 2013 Representative Director, Chairman andChief 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

Eiji Sumi

Director, Managing Executive Oﬃcer
In charge of Personnel & General Aﬀairs
Department, Accounting Department,
Information Systems Department,
and Sustainability Promotion Oﬃce
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 executive)
June 2020 Director, Managing Executive Oﬃcer,
General Manager of Administration Division
Apr. 2023 Director, Managing Executive Oﬃcer,
General Manager of Administration Division,in charge of Sustainability Promotion Oﬃce (present)
Oct. 2023 Director, Managing Executive Oﬃcer, in charge of
Personnel & General Aﬀairs Department,
Accounting Department, Information Systems Department,
and Sustainability Promotion Oﬃce (present)

Noriko Ishikawa

Director (non-executive)

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)
Apr. 2023 Dean of the Faculty of Economics, Konan University (present)

Masakazu Kitano

Director, Managing Executive Oﬃcer
In charge of the Polymers Segment,
Stationed in Tokyo
Apr. 1985 Joined the Company
Apr. 2015 Executive Oﬃcer, General Manager ofTechnology Development Division, and Manager ofTechnology Development & Planning Oﬃce
Apr. 2017 Executive Oﬃcer, General Manager ofTechnology Development Division, and Manager ofTechnology Development & Planning Oﬃce,
and General Manager ofResearch & 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 ofTechnology Development Division,and General Manager ofResearch & 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
Oct. 2023 Director, Managing Executive Oﬃcer In charge of
the Polymers Segment, Stationed in Tokyo (present)

Tsunetoshi Matsuda

Director, Senior Executive Oﬃcer
In charge of Legal &Compliance Department,
Corporate Planning Department,
and Procurement &Logistics Department
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
Apr. 2023 Director, Senior Executive Oﬃcer, General Manager ofCorporate Control Division
Oct. 2023 Director, Senior Executive Oﬃcer
In charge of Legal & Compliance Department,
Corporate Planning Department, and Procurement &Logistics Department (present)

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

June 2017 Director of the Company (present)

監査役
Shigeru Sugisawa

Akio Toyoda

Tetsuaki Fukuhara

Makoto Sano

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. 1983 Joined the Company
June 2010 General Manager of International Business Division
May 2015 Representative Director and President of
Unitika do Brasil Industria Textil Ltda.
Apr. 2019 Executive Oﬃcer, General Manager of
Global Business Promotion Division, and General Manager of
Global Planning & Management Division of the Company
Mar. 2020 Executive Oﬃcer, General Manager of
Global Business Promotion Division
Apr. 2023 Advisor (non-executive)
June 2023 Auditor(non-executive, 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 2013 District Director of Fukuchiyama Tax Oﬃce
July 2014 Director of Oﬃce of Public Relations,Management and Co-ordination Department,
Osaka Regional Taxation Bureau
July 2015 Director of Second Personnel Division,
Management and Co-ordination Department,
Osaka Regional Taxation Bureau
July 2016 Director of First Personnel Division,
Management and Co-ordination Department,
Osaka Regional Taxation Bureau
July 2018 Deputy Assistant Regional Commissioner ofFirst Large Enterprise Examination Department,
Osaka Regional Taxation Bureau
July 2019 Deputy Regional Commissioner ofSecond Taxation Department, Osaka Regional Taxation Bureau
Aug. 2020 Registration as a Certiﬁed Tax Accountant
Feb. 2022 Outside Auditor of Hikarishinsei Company, Limited (present)
June 2023 Auditor of the Company (present)

Auditor (executive)

43

Unitika Report 2023

Auditor (non-executive)

Auditor (non-executive)

Auditor (non-executive)

Unitika Report 202

44

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

10-year Financial Summary

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

Operating Results:
Net sales(100 million yen)

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

1,179.4

Operating proﬁt(100 million yen)

68.0

89.2

104.5

125.4

116.6

81.4

54.7

60.2

60.1

13.3

(％)

4.2

5.6

7.1

9.9

9.1

6.3

4.6

5.5

5.2

1.1

(100 million yen)

47.1

76.8

68.2

104.8

99.7

70.9

31.5

53.8

64.0

10.7

Proﬁt attributable to owners of parent (100 million yen)

5.8

△ 270.3

69.3

73.9

80.8

52.3

△ 21.6

38.6

22.2

1.0

(％)

117.4

136.3

150.1

168.3

161.1

126.3

102.3

105.4

106.8

60.6

Total assets(100 million yen)

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

1,900.0

Net assets(100 million yen)

193.7

315.9

379.4

452.6

407.3

413.5

389.3

411.9

430.7

439.2

Shareholdersʼ equity(100 million yen)

155.4

283.5

346.0

418.4

371.7

378.7

354.8

394.8

413.0

421.1

(％)

6.1

12.0

15.7

19.7

18.4

19.0

18.3

20.7

21.6

22.2

(times)

10.6

4.7

3.7

2.6

2.8

2.7

2.8

2.5

2.3

2.2

(100 million yen)

1,645.5

1,339.0

1,263.3

1,093.3

1,052.5

1,026.0

996.0

968.0

938.9

934.4

Cash ﬂow from operating activities (100 million yen)

68.4

60.8

116.6

181.1

97.4

89.9

98.0

148.7

86.7

5.1

Cash ﬂow from investing activities (100 million yen)

△ 41.0

△ 1.5

41.2

△ 41.6△ 32.3△ 64.4△101.9△ 61.7△ 89.9△ 80.9(100 million yen)

27.4

59.4

157.9

139.5

65.1

25.4

△ 4.0

87.0

△ 3.2

△ 75.8Cash ﬂow from ﬁnancing activities (100 million yen))△ 30.558.7△ 50.1△ 190.9△ 172.1△ 65.2△ 34.8△ 41.4△ 42.1△ 16.6

Capital investment(100 million yen)

50.0

48.1

59.7

48.3

41.3

60.7

93.2

73.9

76.1

76.4

Depreciation(100 million yen)

49.4

47.2

45.6

42.9

44.5

44.8

47.7

45.2

46.7

47.3

R&D expenditures(100 million yen)

38.8

39.4

32.0

31.4

32.7

34.7

36.2

36.4

36.0

37.6

Net income per share

(yen)

10.1

△ 468.7

102.9

110.8

133.3

85.2

△ 43.0

61.4

33.3

△ 3.1

Net assets per share

(yen)

269.4

△ 170.1△ 67.6

58.0

160.8

229.9

188.4

257.7

303.6

332.0

(％)

2.7

3.8

4.8

5.9

5.8

4.1

2.8

3.2

3.1

0.7

(People)

4,513

4,458

3,906

3,671

3,677

3,497

3,438

3,007

3,037

2,944

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.

45

Unitika Report 2023

Unitika Report 2023

46

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Business Overview

FY 2022 Overview

Polymers Segment

Net sales

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

508

515

on electrical and electronic applications, and by soaring raw
material and fuel prices that exceeded the product pricerevisions.

67

In the films business, the effects from a slackening of global

57

414

The segment overall was affected by slow demand centered

35

Main businesses and products• Films business: Nylon films, Polyester films

demand in the packaging sector, and a steep decline indemand for electrical and electronic applications in theindustrial sector, resulted in lower sales in both sectors.

• Plastics business: Engineering plastics,

However, we carried out product price revisions, and shifted tofunctional plastics
2020

2021

2022

2020

2021

2022

(Fiscal year)(Fiscal year)“Emblem HG” and other high value-added products. The
result was an increase in net sales and decrease in operating

lower and were affected by a delay in automobile production
recovery, lower user plant operating rates in China, and a drop
in demand caused by an economic slowdown in Europe. For
functional plastics, sales dropped in electrical and electronic
applications during the second half of the year. However,overseas sales grew. This resulted in an increase in net sales
and decrease in operating profit for the plastics businessoverall.
As a result of the above, the result in the Polymers segment
was an increase in net sales and decrease in operating profit.
Net sales were 51,536 million yen (year-on-year +1.4%) andoperating profit was 3,475 million yen (year-on-year -47.7%).

profit for the film business overall.
In the plastics business, engineering plastics sales were

FY 2022 Overview

Performance Materials
Segment

Net sales

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

344

Main businesses and products• Activated carbon fiber business: Activated carbon fibers

344

296

• Glass fiber business: Yarn, Glass fabric• Glass beads business: Glass beads• Nonwoven fabric business: Spunbond, Spunlace• Industrial fiber business: Polyester staple fibers,Composite fibers, Monofilaments

Fibers & Textiles Segment

8

2020

2021

2022
(Fiscal year)

2020

▲5

0

2021

2022
(Fiscal year)

Net sales

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

393
295

319

Main businesses and products• Garment fiber business: Fibers(Clothing, Daily necessities, Bedding)
2020

2021

▲4

▲6

▲15

2020

2021

2022

2022
(Fiscal year)(Fiscal year)

47

Unitika Report 2023

In the Performance Materials segment, high raw material
and fuel prices pushed up the cost of manufacturing.
Although product price revisions were carried out, there was alarge negative impact on revenues, and the result was anincrease in net sales and decrease in operating profit.
In the activated carbon fiber business, we faced a difficult
struggle due to the effects of inventory adjustments in the
supply chain for water purifier applications, and the effects ofa decline in plant operating rates.
In the glass fiber business, there were strong sales of tents,
sheets, and other products in the industrial materials sector.
There was a large drop in sales of IC cloth in the electronicmaterials sector due to worsening conditions in thesemiconductor market during the second half of the year.
The glass beads business was affected by high fuel prices,
and although we carried out price revisions, sales for roadapplications and reflective material applications were slow

due to the effects of a smaller number of construction
projects, and lower demand resulting from an economic
slowdown in Europe, respectively.
In the nonwoven fabric business, as the ocean freight
network is returning to normal, there were strong sales
overseas. Sales were down in skin care applications and otherareas of the daily living sector. This business faced a difficult
struggle resulting from soaring raw material and fuel prices.
In the industrial fiber business, although sales were strong inconstruction and civil engineering applications for Japan, sales
were slow in some filter applications and marine productapplications. Overseas sales were affected by economic
slowdowns in Europe and other regions.
As a result of the above, the result in the Performance
Materials segment was an increase in net sales and decrease inoperating profit. Net sales were 34,420 million yen(year-on-year +0.1%) and operating loss was 535 million yen(compared to profit of 24 million yen in the previous fiscal
year).

FY 2022 Overview

Sales ratio by segment

In the garment fiber business, sales of uniforms, ladiesʼ
apparel, and other products are trending toward recovery
compared with during the COVID-19 pandemic. In addition,
there were effects from carrying out product price revisions,and sales were higher. However, high import costs resulting
from the weak value of the yen, and high raw material andfuel costs, resulted in a large increase in costs. The revision of
product prices could not fully cover this increase, and there
was a large negative impact on revenues.
As a result of the above, the result in the Fibers & Textiles
segment was an increase in net sales and decrease in operating
profit. Net sales were 31,917 million yen (year-on-year +8.4%)
and operating loss was 1,535 million yen (compared to loss of
610 million yen in the previous fiscal year).

Fibers & Textiles
Segment
27％

FY 2022Net sales
117,900
million yen

Polymers
Segment
44％

Performance Materials
Segment
29％

Unitika Report 2023

48

Introduction

Value Creation
Strategy

ESG

Financial andCorporate Information

Company Profile
As of March 31, 2023

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 Segment
Films (nylon, polyester),

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

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

PT. 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.

Okazaki Plant

Resins (nylon, polyester, polyarylate),

Tel.: +81-774-25-2214

Tel.: +81-564-23-2311

Biodegradable materials
Tarui Plant
Performance Materials Segment
Activated carbon ﬁbers, Glass ﬁbers, Glass beads,

Sakoshi Plant

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

Fibers & Textiles Segment

PT. Unitex
Location: Indonesia

Establishment: 1995

Location: Hong Kong

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

Establishment: 1974

Establishment: 2017

Overseas Ofﬁces and Satellite Ofﬁces

Fibers and textiles (polyester)

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

Location: Thailand

Establishment: 1997

1135 N Arlington Heights Rd., Unit 420, Itasca, IL 60143, U.S.A.

Osaka 541-8566 Japan

Location: Brazil

Chuo-ku, Tokyo 103-8321 Japan

Location: Indonesia

Trading Companies

Location: America

Location: China

Unitika do Brasil Industria Textil Ltda.

UNITIKA EUROPE GmbHBusiness: Cotton spinning

Business: Import and export

Location: Brazil

Establishment: 1958

Establishment: 1973

UNITIKA (SHANGHAI) LTD.
Business: Import and export

Establishment: 1936

Nihombashi-Nichigin Dori Bldg., 4-6-7 Nihonbashi-Hongoku-cho,Location: Vietnam

Establishment: 2013

Business: Import and export

Business: Agriculture and forestry (natural rubber)Tokyo Head Ofﬁce

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

Unitika America Corporation

Other

Brazcot Ltda.

Tel.: +81-6-6281-5695

Location: China

Establishment: 2002

Establishment: 2014

Thai Unitika Spunbond Co., Ltd.

U.S. Ofﬁce

Business: Manufacturing-oriented trading company in China

Business: Import, export, domestic and overseas sales

Business: Manufacture and sales of polyester spunbond

Osaka Head Ofﬁce

Establishment: 1971

PT. Unitika Trading Indonesia

Performance Materials Segment

Fibers & Textiles Segment

Location: Indonesia

UNITIKA TRADING VIETNAM Co.,Ltd

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

Business: Spinning

Unitika (Beijing) Trading Co., Ltd.

UNITIKA ADVANCE (THAILAND) CO., Ltd.

Tel.: +81-791-48-8185

Industrial ﬁbers

Polymers Segment

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

Tel.: +81-584-22-1201

Nonwoven fabrics (polyester spunbond, cotton spunlace),

Head Ofﬁce

Overseas Afﬁliate Companies

Establishment: 2004

Location: Germany

Establishment: 2020

Tel.: +81-3-3246-7540

Main Companies in the Unitika Group
Trading Companies (Manufacturer-type trading companies)

Unitika Trading Co., Ltd.
Metlife Hommachi Square, 2-5-7 Hommachi, Chuo-ku, Osaka 541-0053 JapanJAPANCHINA HONG KONG
Unitika Europe GmbHGERMANY

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

PT. Emblem Asia

INDONESIATHAILAND VIETNAM
INDONESIA

PT. Unitex

INDONESIA

Tel.: +81-6-4705-9011

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

Tel.: +81-774-25-2274

Fibers & Textiles Segment

Polymers Segment

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.

GERMANYAdʼall Co., Ltd.

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
Unitika (Hong Kong) Ltd.

CHINA

Unitika (Shanghai) Ltd.

CHINA

Tel.: +81-774-23-8088

120-1 Mori Minamiouchi, Kumiyama-cho, Kuse-gun, Kyoto 613-0024 Japan

BRAZIL

Tel.: +81-75-632-5020

U.S.A.

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

Unitika Garment Technology Co., Ltd.

Tokyo Head Ofﬁce

Osaka Head Ofﬁce

Precision Kamijo Co., Ltd.
26 Ichibanwari, Gokasho, Uji-shi, Kyoto 611-0011 Japan

Performance Materials Segment

BRAZIL

3-1-4 Motomachi, Naniwa-ku, Osaka-shi 556-0016 Japan
Tel.: +81-6-4705-9141

U.C.S Co., Ltd.

Unitika do Brasil Industria
Textil Ltda.

Unitika Mate Co., Ltd.

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

Unitika Glass Beads 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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Unitika Report 2022

Unitika Report 2022

50