Member of Financial Accounting Standards Foundation

Financial Results for the 3rd Quarter of the Fiscal Year Ending March 31, 2021
February 5, 2021
Listed stock exchanges: Tokyo Stock Exchange
Company name: Unitika Ltd.
Code number: 3103
URL: https://www.unitika.co.jp/e/home.htm
Representative: Shuji Ueno, President and Chief Executive Officer
Contact: Masanori Onishi, General Manager of Accounting Department
TEL: +81-6-6281-5721
Expected submission of quarterly report: February 12, 2021
Expected commencement date for paying dividend: –Preparation of supplementary explanation documents for quarterly financial results: No
Holding of an analyst meeting for quarterly financial results: No(Figures rounded down to nearest million yen.)
1. Consolidated performance for 3rd quarter of fiscal year ending March 31, 2021 (April 1, 2020 to December 31, 2020)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)
Quarterly profit
Operating profit
Ordinary profit
attributable to owners ofparentNet sales
%
(8.0)
(7.2)

Millions of yen

Q3 of FY ending March 31, 2021
Q3 of FY ended March 31, 2020

(Note) Comprehensive income

81,65388,764%15.8(39.8)

Millions of yen

4,459
3,850

%
0.9
(47.0)

Millions of yen

2,943
2,917

Millions of yen

4,622(1,121)%

Q3 of FY ending March 31, 2021: 5,159 million yen [%]Q3 of FY ended March 31, 2020: (1,161) million yen [%]Quarterly profit per share

Diluted quarterly profit per share
Yen
36.55

Yen
75.97
(23.64)Q3 of FY ending March 31, 2021
Q3 of FY ended March 31, 2020

(2) Consolidated financial situation

Q3 of FY ending March 31, 2021
FY ended March 31, 2020

(Reference) Shareholders’ equity

Total assets

Net assets

Capital adequacy ratio

Millions of yen
193,068
193,726

Millions of yen
43,771
38,933

%
20.9
18.3

3rd quarter of fiscal year ending March 31, 2021: 40,326 million yen
Fiscal year ended March 31, 2020: 35,481 million yen

2. Dividend payment
Annual dividend per share
End of Q1
FY ended March 31, 2020
FY ending March 31, 2021

End of Q2
YenEnd of Q3
Yen
0.00



0.00



Year end
Yen

FY ending March 31, 2021 (forecast)

Total
Yen
0.00

Yen
0.00

0.00

0.00

(Note) Revision of the latest dividend forecast: None
(Note) The abovementioned Dividend payment refers to dividends paid to the holders of common stock. For details of dividend payment to theholders of class shares (unlisted), the rights of which are different from those of common stock, please refer to Dividend payment to theholders of class shares mentioned below.

3. Forecast of consolidated performance for fiscal year ending March 31, 2021 (April 1, 2020 to March 31, 2021)(Percentages represent changes from same period in previous year.)Net sales

FY ending March 31, 2021

Operating profit

Ordinary profit

Profit attributable toowners of parent

Profit per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

110,000

(8.0)

5,200

(4.9)

3,500

11.0

3,800



60.33

(Note) Revision of the latest forecasts of operational results: Yes

Member of Financial Accounting Standards Foundation* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying change of scope of
consolidation): Yes
New companies: One (company name) UNITIKA EUROPE GmbH
Excluded companies: One (company name) COSOF Co., Ltd.
(2) Adoption of special accounting methods for preparing quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
 Changes in accounting policies due to revisions of accounting standards: No Changes of accounting policies other than the above: No Changes in accounting estimates: No
 Retrospective restatement: No(4) Number of shares outstanding (Common stock) Number of shares outstanding at end of term (including treasury stock):3rd quarter of the fiscal year ending March 31, 2021: 57,752,343 sharesFiscal year ended March 31, 2020: 57,752,343 shares Number of treasury stocks at end of term
3rd quarter of the fiscal year ending March 31, 2021: 94,920 sharesFiscal year ended March 31, 2020: 94,343 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
3rd quarter of the fiscal year ending March 31, 2021: 57,657,784 shares
3rd quarter of the fiscal year ended March 31, 2020: 57,658,375 shares* This brief report of quarterly financial statements is not subject to audit procedures by a certified public accountant or an
independent auditor.
* Explanation on appropriate use of forecasts of performance and other special items

The forward-looking statements in this document concerning forecasting of performance etc. are based on currently available information andassumptions considered by the Company to be reasonable. Such statements are neither promises nor guarantees of future performance. The actual
performance may be significantly different from forecasts due to various factors. Concerning assumptions used as a basis for forecasting businessperformance and precautionary statements when using the forecast of performance, please refer to 1. Qualitative Information on Quarterly Results(3) Explanation of future forecast information including forecast of consolidated performance on page 3 of the attachment.

Member of Financial Accounting Standards Foundation

Dividend payment to the holders of class shares
The breakdown of dividends per share related to class shares, the rights of which are different from those of common stock, is asfollows:
Annual dividends
End of Q1
Class A share

Yen

End of Q2

End of Q3

Yen

Yen

FY ended March 31, 2020

—

0.00

—

FY ending March 31, 2021

—

0.00

—

FY ending March 31, 2021(forecast)Class B share

Yen

Yen

Yen

FY ended March 31, 2020

—

0.00

—

FY ending March 31, 2021

—

0.00

—

FY ending March 31, 2021(forecast)Year end

Total

Yen

Yen

12,000.00

12,000.00

12,000.00

12,000.00

Yen

Yen

23,740.00

23,740.00

23,740.00

23,740.00

Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2021

 Table of contents for the attachment
1. Qualitative Information on Quarterly Results............................................................................................................ 2(1) Explanation of operational results........................................................................................................................ 2(2) Explanation of financial position ......................................................................................................................... 3(3) Explanation of future forecast information including forecast of consolidated performance .............................. 3
2. Quarterly Consolidated Financial Statements and Main Notes ................................................................................. 4(1) Quarterly consolidated balance sheets ................................................................................................................. 4(2) Quarterly consolidated statements of income and quarterly consolidated statements ofcomprehensive income ....................................................................................................................................... 6
Quarterly consolidated statements of income
Nine-month period ended December 31, 2020 ................................................................................................ 6
Quarterly consolidated statements of comprehensive income
Nine-month period ended December 31, 2020 ................................................................................................ 7(3) Notes on quarterly consolidated financial statements .......................................................................................... 8(Notes on assumption of going concern) ............................................................................................................. 8(Notes on significant changes in shareholders’ equity) ........................................................................................ 8(Additional information) ...................................................................................................................................... 8(Segment information, etc.) ................................................................................................................................. 9-1-

Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2021

1. Qualitative Information on Quarterly Results(1) Explanation of operational results
During the first nine-month period of the consolidated fiscal year under review, the Japanese economy worsened
rapidly because economic activities were greatly restricted due to the spread of the COVID-19 pandemic.
Thereafter, there were signs of gradual recovery along with a resumption of economic activities and rebound ofexports. However, the economy still lacked momentum owing to a deterioration of the employment environment,a slowdown in the recovery of consumption, and persistent concerns over a re-expansion of the pandemic.
Meanwhile, the global economic outlook continued to be uncertain since nobody was able to predict when the
spread of the new coronavirus infections would be fully under control; the economic recovery slowed down due tothe stagnation of economic activities.
Under these circumstances, the Unitika Group has been endeavoring to realize the building of strong businessportfolios, promotion of global business development, a change in business culture and mind-set, and the Group’s
basic policies that place the strengthening of the foundation for a growth phase as the highest priority under
G-STEP30, the 1st, a new three-year medium-term management plan announced in May 2020.
Consequently, the Group reported net sales of 81,653 million yen (down 8.0% year on year), operating profit of
4,459 million yen (up 15.8% year on year), and ordinary profit of 2,943 million yen (up 0.9% year on year).
Meanwhile, profit attributable to owners of parent amounted to 4,622 million yen (versus loss attributable toowners of parent of 1,121 million yen in the previous year) in the consolidated fiscal year under review since theGroup posted insurance claim income related to a fire that broke out at the Uji Plant on January 8, 2019 as an
extraordinary income.
Here is an overview of the business results by segment.
From the first quarter of the current fiscal year, the Company has changed its reportable segment classification.
For a year-on-year comparison of operational results mentioned below, the change applies retrospectively to theresults for the previous fiscal year. For details, please refer to “2. Quarterly Consolidated Financial Statements andMain Notes (3) Notes on quarterly consolidated financial statements (Segment information, etc.).”[Polymers Segment]
In the Polymers segment, sales decreased in the industrial field, such as automotive and electric and electronics
applications, due to the spread of the COVID-19 pandemic.
In the Films business, the packaging sector saw sales grow steadily, supported by a temporary rise in demand forthe food field since people spent more time at home, despite a fall in demand related to foreign visitors to Japanand holiday outings. Furthermore, sales of high-value-added products, such as EMBLEM HG, a barrier nylon film,
continued to grow robustly in Japan and overseas. In the industrial sector, demand was strong in thesemiconductor field. Although sales of Uni-amide, a high heat-resistant polyamide film, decreased, sales of
UNIPEEL, a silicon-free mold release PET film, increased steadily. Accordingly, the sector saw net sales fall but
profit increase.
In the Plastics business, sales of nylon resins decreased in many applications, including electric and electronic
applications, but gradually recovered in automotive applications from the third quarter despite a sharp fall in sales
due to declining production. Sales of U-Polymer, a polyarylate resin, were sluggish in overseas sales as well as in
information terminal equipment, office equipment, and daily commodities applications. Sales of raw materials forother functional resins also faced an uphill battle in automobile and daily commodities applications. Accordingly,
the sector saw net sales and profit decline.
Consequently, the Polymers segment posted operating profit of 4,212 million yen (down 3.8% year on year) on net
sales of 30,685 million yen (down 11.5% year on year).
[Performance Materials Segment]
In the Performance Materials segment, sales of materials for medical gowns and sanitary goods increased due tothe spread of the COVID-19 pandemic, but sales for many applications, chiefly the automotive, and the building
and civil engineering fields stagnated.
In the Activated Carbon Fibers business, sales of faucet built-in water purifiers were robust, but sales ofcommercial-use products were weak in water purifier applications. Furthermore, sales for gas phase andenvironment applications diminished due to falling automobile production.
In the Glass Fibers business, in the industrial materials sector, sales for environment-related applications grewstrongly, but sales of tents and sheets, etc. for building and civil engineering applications were sluggish. In theelectronic materials sector, sales of IC cloth continued increasing steadily, supported by strong semiconductor
markets. Sales of high-value-added products, such as super-thin products and materials with low thermal
expansion, were also strong.
In the Glass Beads business, sales of products for road applications declined due to a delay in the start ofconstruction projects. Sales for industrial applications were sluggish due to a fall in demand for automotive- andmachinery-component-related applications. Furthermore, sales of products for reflective material also remained
weak.
In the Non-woven Fabrics business, sales for building and civil engineering applications were sluggish due to theimpact of COVID-19 outbreak. Furthermore, sales for automotive and cosmetics applications remained weakdespite a recovery trend. On the other hand, sales for daily product applications, such as medical gowns anddisinfectant sheets, grew steadily.
-2-Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2021

In the Industrial Materials business, sales of polyester staple fibers for daily product and industrial productapplications increased robustly, but their sales for building material and automotive applications were weak. Salesof ultra-high-strength polyester filament yarns decreased substantially for building and civil engineering
applications due to the postponement and suspension of projects, etc.
Consequently, the Performance Materials segment posted operating profit of 456 million yen (versus an operating
loss of 49 million yen in the previous year) on net sales of 21,798 million yen (down 10.3% year on year).
[Fibers and Textiles Segment]
In the Fibers and Textiles segment, the situation was very difficult for the Garments, Lifestyle Materials andBedding business since sales were sluggish for hotels, restaurants, and offices in the uniform sector, a mainstay ofthis business, and sales also decreased in the other general clothing sector, due to the COVID-19 pandemic. On theother hand, sales grew for medical gown and protective clothing applications, supporting earnings.
Consequently, the Fibers & Textiles segment posted an operating loss of 133 million yen (versus an operating lossof 295 million yen in the previous year) on net sales of 29,147 million yen (down 1.7% year on year).
[Others]
The Others category posted an operating loss of 50 million yen (versus an operating loss of 181 million yen in theprevious year) on net sales of 22 million yen (down 83.4% year on year).
(2) Explanation of financial position

Total assets decreased by 657 million yen from the end of the previous consolidated year to 193,068
million yen mainly due to a decrease in notes and accounts receivable – trade and inventories despite anincrease in cash and deposits from the receipt of insurance claims related to the fire incident at the Uji
Plant. Liabilities fell by 5,494 million yen from the end of the previous consolidated year to 149,297
million yen. This was primarily due to a decline in notes and accounts payable – trade and long-termborrowings and the reversal of provision for loss on litigation. Net assets increased by 4,837 million yen
from the end of the previous consolidated year to 43,771 million yen. This was mainly due to a rise inretained earnings caused by the posting of profit attributable to owners of parent.

(3) Explanation of future forecast information including forecast of consolidated performance
Although containment of the COVID-19 pandemic still cannot be foreseen, operating profit and ordinary profit for
the full year of the fiscal year ending March 31, 2021 are expected to exceed the previous forecast, judging fromthe consolidated performance for the first nine-month period of the fiscal year under review. Accordingly, theCompany has revised the forecast of consolidated performance for the full year of the fiscal year ending March 31,
2021 announced on November 10, 2020 as follows. In addition, as the management team examines sales of idlingassets to improve asset efficiency, the Company is likely to post extraordinary loss. Therefore, profit attributableto owners of parent has remained unchanged from the previous forecast.
Revision of the full year forecast of consolidated performance for the fiscal year ending March 31, 2021 (April 1,2020 to March 31, 2021)
Net sales

Operating profit Ordinary profit

Profit attributable toowners of parent

Profit per share

Previous forecast (A)Millions of yen
110,000

Millions of yen
4,400

Millions of yen
2,700Millions of yen
3,800

Yen
60.33

Revised forecast (B)110,000

5,200

3,500

3,800

60.33

Changes (B − A)

—

800

800

—

Percentage change (%)

—

18.2

29.6

—

119,537

5,467

3,153

(2,158)(Reference) Performance ofthe previous fiscal year (theyear ended March 31, 2020)-3-(43.01)

Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2021

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly consolidated balance sheets
Previous consolidated
fiscal year
(March 31, 2020)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Machinery, equipment and vehicles, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-(Unit: Millions of yen)Q3 of current consolidated
fiscal year ending March 2021
(December 31, 2020)

18,86030,95329,4982,961(48)
82,22521,00429,35827,5572,382(65)
80,237

21,54365,191
18,711
105,447

20,52465,026
20,638106,188

1,756
1,756

1,982
1,982

4,380
(84)
4,296
111,500
193,726

4,720
(60)
4,660
112,831
193,068

Unitika Ltd. (3103)

Liabilities
Current liabilities
Notes and accounts payable – trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for product repairs
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for loss on litigation
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2021

(Unit: Millions of yen)Q3 of current consolidated
fiscal year ending March 2021
(December 31, 2020)

Previous consolidated
fiscal year
(March 31, 2020)-5-

14,922
2,288
2,675
284
1,710
42
9,313
31,237

12,794
2,382
2,653
330
963
42
11,09930,265

94,631
2,566
14,333
12,024
123,554
154,792

92,612
14,431
11,988
119,032
149,297100
13,21821,559(56)
34,821

100
13,21825,860(57)
39,122

361

398

(11)
6,412
(3,521)(2,581)660
3,451
38,933
193,726

8
6,412(3,345)(2,270)1,203
3,444
43,771
193,068—

Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2021

(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income(Quarterly consolidated statements of income)(Nine-month period ended December 31, 2020)(Unit: Millions of yen)
Nine-month period
Nine-month period
ended December 31, 2019
ended December 31, 2020
(April 1, 2019 to(April 1, 2020 to
December 31, 2019)
December 31, 2020)
88,76481,653
Net sales
68,56461,604
Cost of sales
20,20020,049Gross profit
16,34915,590
Selling, general and administrative expenses
3,850
4,459
Operating profit
Non-operating income
2528Interest income
71
74
Dividend income
Share of profit of entities accounted for using equity—
19
method93
60
Rental income—
266
Subsidy income
167
215
Other
376
644
Total non-operating income
Non-operating expenses
885
891
Interest expenses
Share of loss of entities accounted for using equity—
16
method111974
Foreign exchange losses
312
279
Other
1,309
2,160
Total non-operating expenses
2,917
2,943
Ordinary profit
Extraordinary income
74
181
Gain on sales of non-current assets—
0Gain on sales of investment securities—
3,398
Insurance claim income
75
3,579
Total extraordinary income
Extraordinary losses
860
654
Loss on disposal of non-current assets—
2
Loss on sales of investment securities
42
30
Loss on valuation of investment securities
27
320
Business restructuring expenses—
70
Loss on litigation—
2,540
Provision for loss on litigation
3,471
1,079
Total extraordinary losses
(477)
5,443
Profit (loss) before income taxes
436
622
Income taxes – current
261
187
Income taxes – deferred
697
810
Total income taxes(1,175)
4,633
Profit (loss)(54)
11
Profit (loss) attributable to non-controlling interests(1,121)
4,622
Profit (loss) attributable to owners of parent-6-Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2021

(Quarterly consolidated statements of comprehensive income)(Nine-month period ended December 31, 2020)(Unit: Millions of yen)
Nine-month period ended
December 31, 2020
(April 1, 2020 to
December 31, 2020)

Nine-month period ended
December 31, 2019
(April 1, 2019 to
December 31, 2019)
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans,
net of tax
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests-7-(1,175)

4,633

123
(113)
(287)

37
23
154

291

310

13

525

(1,161)

5,159(1,059)

5,166

(102)

(7)

Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2021

(3) Notes on quarterly consolidated financial statements(Notes on assumption of going concern)
Not applicable(Notes on significant changes in shareholders’ equity)
Not applicable(Additional information)(Impact of COVID-19 pandemic)
The spread of the COVID-19 outbreak has had a pervasive impact on economic and corporate activities. In
addition, it is quite difficult to predict the future development of the outbreak and the timing of its successful
containment. Thus, based on information available from external sources, the Unitika Group madeaccounting estimates on impairment of non-current assets and recoverability of deferred tax assets etc. on
the assumption that the Group business will continue to be affected by COVID-19 for a certain period in thefiscal year ending March 31, 2021.
The assumption used for the said estimates has not significantly changed from the one that the Groupdescribed in the Securities Report for the previous consolidated fiscal year.
As there is a high level of uncertainty with this incident, the Group may incur losses in the future if the
impact lingers on.
(Litigation)
Concerning the lawsuit filed by citizens of Toyohashi City, Aichi Prefecture (the “City”), who claimed that
Unitika’s sale of land for industrial use to a third party was a breach of the land transfer contract—the land
was transferred by the City to the Company in 1951—and requested the mayor of the City to pursue
damages against the Company (the Company participated in the lawsuit as an assisting intervener), thejudgment by the Nagoya High Court became final due to the decision by the Supreme Court 3rd Petty Bench.
In accordance with the judgment, the Company paid 2,609 million yen in damages and delinquency charges.

-8-Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2021

(Segment information, etc.)[Segment Information]
I. Nine-month period ended December 31, 2019 (April 1, 2019 to December 31, 2019)
1. Information on net sales, income or loss by reportable segment
Reportable segment
Other(Note 1)

Total

(Unit: Millions of yen)Amount posted in
Quarterly
consolidated
Adjustment
statements of(Note 2)income(Note 3)Polymers

Performance
Materials

Fibers &TextilesNet sales
Net sales to outside customers
Inter-segment sales or transfers

34,675
5,689

24,2993,303

29,656234

88,630
9,228

133
18

88,764
9,246—(9,246)

88,764—

Total

40,36427,60329,89197,858151

98,010(9,246)

88,764

Segment income (loss)
4,378
(49)
(295)
4,033
(181)
3,851
(1)
(Notes) 1. The Other segment includes business segments that are not included in reportable segments.
2. Adjustment of Segment income (loss) is attributable to the elimination of inter-segment transactions.
3. Segment income (loss) is adjusted with operating profit in quarterly consolidated statements of income.

3,850

Total

II. Nine-month period ended December 31, 2020 (April 1, 2020 to December 31, 2020)
1. Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment
Other(Note 1)

Total

Amount posted in
Quarterly
consolidated
Adjustment
statements of(Note 2)income(Note 3)Polymers

Performance
Materials

Fibers &TextilesNet sales
Net sales to outside customers
Inter-segment sales or transfers

30,685
5,490

21,7983,380

29,147
228

81,6319,099

22—81,653
9,099—(9,099)81,653—

Total

36,17625,17929,37590,7302290,752(9,099)81,653

Segment income (loss)
4,212
456
(133)
4,535
(50)
4,485
(26)
(Notes) 1. The Other segment includes business segments that are not included in reportable segments.
2. Adjustment of Segment income (loss) is attributable to the elimination of inter-segment transactions.
3. Segment income (loss) is adjusted with operating profit in consolidated statements of income.

4,459

Total

2. Matters concerning the revision of reportable segments
From the first quarter of the current fiscal year, the Company has changed its organizational
management system and has reviewed the Group’s management classification to promote its new
medium-term management plan. Accordingly, it has changed its reportable segment classification to“Polymers,” “Performance Materials,” and “Fibers & Textiles” from “Polymers,” “Advanced
Materials,” and “Fibers & Textiles.”For your information, segment information for the first nine-month period ended December 31, 2019
(April 1, 2019 to December 31, 2019) was prepared in accordance with the new reportable segmentclassification.

-9-