Member of Financial Accounting Standards Foundation

Financial Results for the 2nd Quarter of the Fiscal Year Ending March 31, 2020
November 8, 2019
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: November 13, 2019
Expected commencement date for paying dividend: –Preparation of supplementary explanation documents for quarterly financial results: Yes
Holding of an analyst meeting for quarterly financial results: Yes (for securities analysts and institutional investors)(Figures rounded down to nearest million yen.)
1. Consolidated performance for 2nd quarter of fiscal year ending March 31, 2020 (April 1, 2019 to September 30, 2019)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales

Operating profit
%
(4.6)
0.5

Millions of yen

Q2 of FY ending March 31, 2020
Q2 of FY ended March 31, 2019

(Note) Comprehensive income

60,486
63,379Millions of yen

2,866
4,408

Quarterly profit
attributable to owners ofparentOrdinary profit%(35.0)(24.0)

Millions of yen

2,148
4,257

%
(49.5)(20.2)

Millions of yen(1,383)
3,875%—(18.5)

Q2 of FY ending March 31, 2020: (1,263) million yen [—%]
Q2 of FY ended March 31, 2019: 3,038 million yen [(34.1%)]
Quarterly net income per share

Diluted quarterly net income per share

Yen(26.78)63.76

Q2 of FY ending March 31, 2020
Q2 of FY ended March 31, 2019

Yen
—
39.13

(2) Consolidated financial situation
Total assets
Q2 of FY ending March 31, 2020
FY ended March 31, 2019

(Reference) Shareholders’ equity

Net assets

Millions of yen
194,278
199,093

Capital adequacy ratio

Millions of yen
39,76741,352

%
18.7
19.0

2nd quarter of fiscal year ending March 31, 2020: 36,322 million yen
Fiscal year ended March 31, 2019: 37,873 million yen

2. Dividend payment
Dividends per share
End of Q1

End of Q2Yen

FY ended March 31, 2019
FY ending March 31, 2020

End of Q3
Yen
0.00




Year end
Yen

Total



Yen
0.00

Yen
0.00



0.00

0.00

0.00

FY ending March 31, 2020 (forecast)(Note) Revision of the latest dividend forecast: None
(Note) The above Dividend payment refers to dividends paid to the holders of common stock. For details of dividend payment to the holders of classshares (unlisted), the rights of which are different from those of common stock, please refer to Dividend payment to the holders of class shares
mentioned below.

3. Forecast of consolidated performance for fiscal year ending March 31, 2020 (April 1, 2019 to March 31, 2020)(Percentages represent changes from same period in previous year.)Net sales

FY ending March 31, 2020

Operating profit

Millions of yen%

129,000(0.1)

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

Profit attributable toowners of parent

Ordinary profit

Net income
per share%

Millions of yen%

Millions of yen%

Yen

6,500 (20.2)

5,200(26.7)

200(96.2)(2.11)

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): No
New companies: ― (company name)
Excluded companies: ― (company name)(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):
2nd quarter of the fiscal year ending March 31, 2020: 57,752,343 sharesFiscal year ended March 31, 2019: 57,752,343 shares Number of treasury stocks at end of term
2nd quarter of the fiscal year ending March 31, 2020: 94,057 sharesFiscal year ended March 31, 2019: 93,637 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
2nd quarter of the fiscal year ending March 31, 2020: 57,658,458 shares
2nd quarter of the fiscal year ended March 31, 2019: 57,659,748 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

FY ended March 31, 2019

—

0.00

FY ending March 31, 2020

—

0.00

FY ending March 31, 2020 (forecast)Class B share

Yen

Yen

—

0.00

FY ending March 31, 2020

—

0.00

Year end

Total
Yen

Yen

—

12,000.00

12,000.00—

12,000.00

12,000.00

Yen

FY ended March 31, 2019
FY ending March 31, 2020 (forecast)End of Q3

Yen

Yen

Yen

—

Yen

23,740.00

23,740.00—

23,740.00

23,740.00

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2020

 Table of contents for the attachment
1. Qualitative Information on Quarterly Results .................................................................................................. 2(1) Explanation of operational results................................................................................................................ 2(2) Explanation of financial situation ................................................................................................................ 3(3) Explanation of future forecast information including forecast of consolidated performance ...................... 4
2. Quarterly Consolidated Financial Statements
and Major Notes to Consolidated Financial Statements .................................................................................. 5(1) Consolidated quarterly balance sheets ......................................................................................................... 5(2) Consolidated quarterly statements of income and consolidated quarterly statements ofcomprehensive income ................................................................................................................................ 7
Consolidated quarterly statements of income
Six-month period ended September 30, 2019 ......................................................................................... 7
Consolidated quarterly statements of comprehensive income
Six-month period ended September 30, 2019 ......................................................................................... 8(3) Consolidated quarterly statements of cash flows ......................................................................................... 9(4) Notes on quarterly consolidated financial statements ................................................................................ 10(Notes on going concern assumption) ....................................................................................................... 10(Notes on significant changes in shareholders’ equity) ............................................................................. 10(Additional information) ........................................................................................................................... 10(Segment information) .............................................................................................................................. 11
3. Supplementary Information ............................................................................................................................ 12-1-

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2020

1. Qualitative Information on Quarterly Results(1) Explanation of operational results
During the six-month period of the consolidated fiscal year under review, the Japanese economy continued to
grow moderately, supported by good employment and income environment as well as solid capital investment andconsumer spending in Japan, despite the impact of a slowdown in external demand. Meanwhile, the outlook forthe global economy remained unclear, although the U.S. economy continued to grow robustly. This was due toeconomic stagnation in China as well as further intensifying trade friction between the U.S. and China andlingering geopolitical risks, such as unstable situations in the Middle East.
Under these circumstances, the Unitika Group endeavored to realize the three Gs (Growth, Global, andGovernance) promoted under the “G” round 20—to The Next Stage, its medium-term management plan.
Consequently, the Group reported net sales of 60,486 million yen (down 4.6% year on year), operating profit of
2,866 million yen (down 35.0% year on year), and ordinary profit of 2,148 million yen (down 49.5% year on year)
in the six-month period of the consolidated fiscal year under review. Meanwhile, the Group posted 2,500 million
yen of provision for loss on litigation, as an extraordinary loss, resulting in loss attributable to owners of parent of
1,383 million yen in the six-month period of the consolidated fiscal year under review (vs. profit attributable toowners of parent of 3,875 million yen in the previous year). This was a response to a judgment made by court ofsecond instance, in which citizens of Toyohashi City filed a lawsuit claiming that the Company’s sale of land forindustrial use (the land transferred by the City to the Company in 1951) to a third party was a breach of the landtransfer contract and requested the mayor of the City to exercise a claim for damages against the Company.
Furthermore, as the Unitika Group announced on August 28, 2019 and November 1, 2019, incidents ofinappropriate quality control occurred successively in the Company and its subsidiaries. The Group greatly regrets
that such incidents occurred, reflects deeply on insufficient understanding about quality control as a manufacturer,
and sincerely apologizes for significant worry and inconveniences these incidents may have caused customers andconcerned parties.
Here is an overview of the business results by segment.

[Polymers]
The Polymers business saw the occurrence of a fire at the Uji Plant in January 2019 affect production and sales of
the Films business and nylon products in the Plastics businesses.
In the Films business, sales decreased in the packaging sector due to the impact of the fire at the Uji Plant and aslowdown in demand for some seasonal products because the end of the rainy season came late. However, sales ofhigh value-added products, such as EMBLEM HG, a barrier nylon film, grew steadily in Japan and overseas. In theindustrial sector, sales decreased due to the deterioration of market conditions in the area of semiconductor
applications both at home and abroad. Meanwhile, sales of high value-added products, such as Uni-peel, asilicon-free mold release PET film, and Uni-amide, a heat-resistant thermoplastic polyamide film, increased
steadily. Accordingly, the Films business saw net sales decline but profit remain flat.
In the Plastics business, sales of nylon resins decreased due to the impact of the fire at the Uji Plant. Furthermore,sales of U-Polymer, a polyarylate resin, grew strongly for information terminal equipment applications but faced
an uphill battle for automobile applications overseas due to a fall in demand. Sales of raw materials for otherfunctional resins were sluggish due to the deterioration of market conditions caused by trade disputes between the
U.S. and China and a decline in demand caused by stagnation in the semiconductor market. Accordingly, thePlastics business posted a fall in net sales and profit.
In the Non-woven Fabrics business, sales of polyester spunbond fabrics grew steadily overseas supported bysteady progress of new customer exploitation, but were largely sluggish in Japan. THAI UNITIKA SPUNBOND
CO., LTD. (TUSCO), a subsidiary in Thailand, saw its efforts to encourage customers to adopt products
manufactured by its new machinery at the stage of design pay off, but overall sales were sluggish due to customers’
inventory adjustment for some applications. Sales of cotton spunlace grew strongly overseas for sanitary material
applications, but demand temporarily decreased in Japan. Accordingly, the Non-woven Fabrics business saw net
sales and profit decline.
Consequently, the Polymers business posted operating profit of 2,854 million yen (down 29.3% year on year) on
net sales of 29,048 million yen (down 6.6% year on year).

-2-

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2020

[Advanced Materials]
In the Glass Fibers business, the industrial materials sector saw sales of products for building applications, such as
tents, smoke barriers, and fire spread prevention sheets, grow steadily. Sales for environment-related applications
also recovered. In the electronic materials sector, sales of IC cloth, especially high value-added products, such as
super thin products and materials with low thermal expansion, grew steadily overseas. However, sales declined inJapan due to the deterioration of conditions in the semiconductor market.
In the Glass Beads business, sales of products for industrial applications were sluggish due to a fall in demand in
the field of automotive and electronic components. Demand for products for reflective material applications
recovered but profitability decreased. Meanwhile, sales of products for road applications increased steadily.
In the Activated Carbon Fibers business, sales for our mainstay water purifier applications, especially faucet
built-in water purifiers, continued to be strong and sales for VOC removal applications also continued to growsteadily. However, sales for industrial filter applications remained sluggish.
Consequently, the Advanced Materials business posted operating profit of 483 million yen (down 22.8% year onyear) on net sales of 6,470 million yen (up 2.9% year on year).

[Fibers and Textiles]
In the Industrial Materials business, sales of polyester staple fibers grew steady for daily product applications andindustrial material applications, but exports were sluggish. Sales of ultra-high-strength polyester filament yarns
were also robust for civil engineering and building applications. However, demand for composite fibers decreased
for material applications.
In the Garments, Lifestyle Materials and Bedding business, sales in the uniform sector, a mainstay of this business,remained strong chiefly for corporate customers. However, sales continued to be weak in the sports clothing andbedding sectors. Exports of raw fibers for high-functional materials also declined. Furthermore, in the Overseas
business, sales of denim remained flat from the previous year.
Consequently, the Fibers and Textiles business posted an operating loss of 323 million yen (vs. operating loss of
24 million yen in the previous year) on net sales of 24,840 million yen (down 1.5% year on year).

[Others]
The Others category posted an operating loss of 144 million yen (vs. operating loss of 203 million yen in theprevious year) on net sales of 127 million yen (down 83.8% year on year).
(2) Explanation of financial situation
Total assets decreased by 4,815 million yen from the end of the previous consolidated year to 194,278 million yen,mainly due to a decrease in notes and accounts receivable-trade. Liabilities declined by 3,229 million yen from theend of the previous consolidated fiscal year to 154,511 million yen, mainly due to a decline in notes and accounts
payable-trade despite the posting of provision for loss on litigation. Net assets fell by 1,585 million yen from theend of the previous consolidated year to 39,767 million yen. This was mainly due to a decrease in retained
earnings caused by the posting of loss attributable to owners of parent.
Here is a summary of the cash flow situation.
(Net cash provided by [used in] operating activities)
Net cash provided by operating activities amounted to 4,593 million yen (down 21.1% year on year) during thefirst six-month period of the current consolidated fiscal year due to a decrease in trade receivables and theposting of depreciation and provision for loss on litigation despite a decline in trade payables.
(Net cash provided by [used in] investing activities)
Net cash used in investment activities amounted to 2,987 million yen during the first six-month period of thecurrent consolidated fiscal year (3,219 million yen used in the same period of the previous consolidated fiscal
year) due to the posting of expenses related to capital expenditures.
(Net cash provided by [used in] financing activities)
Net cash used in financing activities amounted to 2,079 million yen during the first six-month period of thecurrent consolidated fiscal year (1,859 million yen used in the same period of the previous consolidated fiscal
year), mainly due to repayment of loans payable.
As a result, cash and cash equivalents at the end of the second quarter of the consolidated fiscal year underreview decreased by 553 million yen from the end of the previous consolidated fiscal year to 21,569 million
yen.

-3-

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2020

(3) Explanation of future forecast information including forecast of consolidated performance
Considering the consolidated performance, mainly the Polymers business, for the first six-month period of thecurrent fiscal year, the Company has revised the forecast of consolidated net sales for the full year of the fiscal
year ending March 31, 2020 announced on August 6, 2019. For information, the forecast for operating profit,
ordinary profit, and profit attributable to owners of parent remain unchanged from the previous forecast.
Revision of the full year forecast of consolidated performance for the fiscal year ending March 31, 2020 (April 1,
2019 to March 31, 2020)
Net sales
Previous forecast (A)OperatingprofitOrdinary profit(Millions of yen) (Millions of yen) (Millions of yen)
132,000
6,500
5,200

Profit attributable toowners of parent

Profit per
share(Millions of yen)200

Yen
(2.11)

Revised forecast (B)129,000

6,500

5,200

200

(2.11)

Changes (B − A)

(3,000)

0

0

0



Percentage change (%)

(2.3)

0.0

0.0

0.0



(Reference) Performance of theprevious fiscal year (the year
ended March 31, 2019)

129,098

8,144

7,093

5,232

85.17

-4-

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2020

2. Quarterly Consolidated Financial Statements and Major Notes to Consolidated Financial Statements(1) Consolidated quarterly balance sheets(Unit: Millions of yen)Previous consolidated
Q2 of FY ending March 2020
fiscal year
(September 30, 2019)(March 31, 2019)
AssetsCurrent assets
Cash and deposits
22,58022,229Notes and accounts receivable-trade35,316
29,615Inventories
29,63930,477
Other
2,416
2,701
Allowance for doubtful accounts
(61)
(48)
Total current assets
89,891
84,974Non-current assets
Property, plant and equipment
Machinery, equipment and vehicles, net
23,002
22,952
Land
65,62965,179Other, net
14,235
14,866
Total property, plant and equipment
102,868
102,997
Intangible assets
Other
1,927
1,822
Total intangible assets
1,927
1,822
Investments and other assets
Other
4,444
4,517
Allowance for doubtful accounts
(37)
(33)
Total investments and other assets
4,406
4,483
Total non-current assets
109,202109,303
Total assets
199,093
194,278-5-

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2020

(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2019)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
A product repair reserve fund
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for retirement benefits for directors(and other officers)
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

Q2 of FY ending March 2020
(September 30, 2019)18,056-6-

13,370

2,430

2,241

99,993

98,530

589

532

1,648

1,592

72

43

8,743

9,193

131,534

125,503

180

150

4

—

—

2,500

13,184

13,622

12,836

12,734

26,20629,007

157,740

154,511100

100

13,21813,21824,04022,334(56)(56)

37,30235,596

363

396

(69)

(97)

6,412

6,412

(3,589)(3,635)(2,545)(2,350)

571

725

3,479

3,444

41,352

39,767

199,093

194,278

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2020

(2) Consolidated quarterly statements of income and consolidated quarterly statements of comprehensive income(Consolidated quarterly statements of income)(Six-month period ended September 30, 2019)(Unit: Millions of yen)Six-month period
Six-month period
ended September 30, 2018
ended September 30, 2019
(April 1, 2018 to(April 1, 2019 to
September 30, 2018)
September 30, 2019)
63,37960,486
Net sales
48,39446,727
Cost of sales
14,984
13,759Gross profit
10,576
10,892
Selling, general and administrative expenses
4,408
2,866
Operating profit
Non-operating income
2861Interest income
46
46
Dividend income
Share of profit of entities accounted for using
15
4
equity method374—
Foreign exchange gains
68
63
Rent income
184
164
Other
717
340
Total non-operating income
Non-operating expenses
618
599
Interest expenses
250—
Foreign exchange losses
250
208
Other
868
1,058
Total non-operating expenses
4,257
2,148
Ordinary profit
Extraordinary income
74—
Gain on sales of non-current assets
0—Gain on sales of investment securities
Gain on liquidation of subsidiaries and398—
associates
398
74
Total extraordinary income
Extraordinary losses
254
646
Loss on disposal of non-current assets
44—
Loss on valuation of investment securities
2,500—
Provision for loss on litigation
23
—
Other
254
3,213
Total extraordinary losses
4,402
(990)
Profit (loss) before income taxes
520
371
Income taxes-current
2
38
Income taxes-deferred523
410
Total income taxes
3,878(1,400)
Profit (loss)
Profit (loss) attributable to non-controlling2(17)interests
3,875(1,383)
Profit (loss) attributable to owners of parent-7-

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2020

(Consolidated quarterly statements of comprehensive income)(Six-month period ended September 30, 2019)
Six-month period ended
September 30, 2018
(April 1, 2018 toSeptember 30, 2018)(Unit: Millions of yen)Six-month period ended
September 30, 2019
(April 1, 2019 to
September 30, 2019)

Profit (loss)

3,878(1,400)

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

15(13)(1,020)
178
(839)

33
(31)
(59)
194
136

Comprehensive income

3,038(1,263)

3,074(1,229)

(35)

(34)

Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests-8-Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2020

(3) Consolidated quarterly statements of cash flows
Six-month period ended
September 30, 2018
(April 1, 2018 toSeptember 30, 2018)
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Loss (gain) on liquidation of subsidiaries and associates
Provision for loss on litigation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for businessrestructuring
Increase (decrease) in a product repair reserve fund
Increase (decrease) in other provisionInterest expenses
Loss (gain) on disposal of non-current assets
Loss (gain) on sales of non-current assets
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Proceeds from insurance income
Net cash provided by (used in) operating activities
Cash flows from investing activities
Decrease (increase) in time deposits
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-9-(Unit: Millions of yen)Six-month period ended
September 30, 2019
(April 1, 2019 to
September 30, 2019)

4,402

(990)

2,390

2,548

(398)

—

—

2,500

(1)

(16)

588

645

(20)

—

(349)

(28)

68

(60)

618

599

254

646

—

(74)

—

44

2,008

5,654

(2,164)

(887)

(233)

(4,623)

(219)

(854)

6,942

5,101

74

108

(608)

(596)

(583)

(490)

—

470

5,825

4,593

(158)

(206)

(5)

(5)

—

1

(2,886)(3,056)

10

501

(179)

(222)

(3,219)(2,987)

(19)

(188)

100

—

(1,414)(1,492)

(397)

(321)

(128)

(76)

(1,859)(2,079)

(54)

(79)

691

(553)

26,16922,122

26,861

21,569

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2020

(4) Notes on quarterly consolidated financial statements(Notes on going concern assumption)
Not applicable(Notes on significant changes in shareholders’ equity)
Not applicable.
(Additional information)
In a lawsuit filed by citizens of Toyohashi City, Aichi Prefecture (the “City”) who claimed that Unitika’s sale ofland 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 demand damages against theCompany (the Company participated in the lawsuit as an assisting intervener), on February 8, 2018 the Nagoya
District Court ordered the mayor to request the Company to pay 6,300 million yen in damages and delinquency
charges. On February 20, 2018, the mayor appealed to the Nagoya High Court against the decision (theCompany participated in the lawsuit as an assisting intervener). On July 16, 2019, the Nagoya High Court
sentenced the mayor to request the Company to pay around 2,094 million yen in damages and delinquency
charges. On July 29, 2019, the mayor appealed to the Supreme Court against the judgment made by the court ofsecond instance and made a petition for acceptance of a final appeal. Meanwhile, the Company madereasonable estimates to calculate the amount basing on the judgment by the High Court and posted 2,500
million yen of provision for loss on litigation.

- 10 -

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2020

(Segment information)
Segment Information
I. Six-month period ended September 30, 2018 (April 1, 2018 to September 30, 2018)
1. Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment

Polymers

Advanced Fibers &Materials Textiles

Total

Other
(Note 1)

Total

Amount posted in
Consolidated
quarterly
Adjustment
statements of(Note 2)income(Note 3)

Net sales
Net sales to outside customers
Inter-segment sales or transfers

31,087

6,286

25,21962,593785

63,379—63,379

4,536

445

264

5,245

607

5,853

(5,853)—

Total

35,623

6,732

25,48367,8391,393

69,232(5,853)63,379

4,037
625
(24)
4,638
(203)
4,435
(27)
4,408
Segment income (loss)(Notes) 1. The Other segment includes business segments that are not included in the reporting segments, such as the design,
construction, and maintenance businesses of plant projects.
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.

II. Six-month period ended September 30, 2019 (April 1, 2019 to September 30, 2019)
1. Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment

Polymers

Advanced Fibers &Materials Textiles

Total

Net sales
Net sales to outside customers
Inter-segment sales or transfers

29,048
4,588

360

252

5,201

Total

33,637

6,830

25,09265,560

Other(Note 1)

Total

Amount posted in
Consolidated
Adjustment
quarterlystatements of(Note 2)income(Note 3)60,486

—

18

5,219

(5,219)—145

65,706(5,219)60,486

2,854
483
(323)
3,014
(144)
2,870
(3)
Segment income (loss)(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.

2,866

6,470

24,840- 11 -

60,359127

60,486

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2020

3. Supplementary Information
1. Results and earnings forecast for fiscal year ending March 2020 (consolidated)(Millions of yen)

FY ended
March 2018
FY ended
March 2019
FY endingMarch 2020
Comparison
with prior year

Consolidated

Net sales

OperatingprofitOrdinary
profitProfit attributableto owners of parent

Full year

128,388

11,658

9,972

8,081

Q2
Full year
Q2
Full year (forecast)
Q2
Full year

63,379129,098
60,486129,000(2,893)
(98)

4,408
8,144
2,866
6,500
(1,541)(1,644)

4,257
7,093
2,148
5,200
(2,109)(1,893)

3,875
5,232
(1,383)200(5,259)(5,032)

2. Segment information (consolidated)(Millions of yen)
Advanced
Polymers
Materials
Results forprevious
fiscal year

Results for
current
fiscal year

1st six-month
period ended
September
2018(Results)
1st six-month
period ended
September
2019(Results)

Comparison with the same
period of the previous year

Net sales to outside
customers
Component ratio (%)
Operating profit
Component ratio (%)
Net sales to outside
customers
Component ratio (%)
Operating profit
Component ratio (%)
Net sales to outside
customers
Increase/decrease fromprevious year (%)

Fibers &Textiles

Other

Adjustment

Consolidated
total

31,087

6,286

25,219785—

63,379

49.0
4,037
91.6

9.9
625
14.2

39.8
(24)
(0.5)

1.2
(203)
(4.6)

—

100.0
4,408
100.0

29,0486,470

24,840127—

60,486

48.0
2,854
99.6

10.7
483
16.9

41.1
(323)
(11.3)

0.2
(144)
(5.0)

—

100.0
2,866
100.0

(2,038)

183

(379)

(658)

—
—

(6.6)

2.9

(1.5)

(83.8)

Operating profit(1,182)

(142)

(298)

59

Increase/decrease fromprevious year (%)(29.3)(22.8)

—

—

(27)
(0.6)

(3)
(0.1)

(2,893)(4.6)
23(1,541)—(35.0)

3. Capital investment, Depreciation (Property, plant and equipment), R&D expenditures, Interest-bearing liabilities,
Financial account balance, Number of permanent employees (consolidated)(Millions of yen, persons)Capitalinvestment
FY ended
March 2018
1st six-month
period ended
September 2018
FY ended
March 2019
1st six-month
period ended
September 2019

Depreciation(Property,
plant andequipment)

R&D
expenditures

Interest-bearing
Financialliabilities (endaccount balanceof fiscal year)

Number ofpermanent
employees(persons)

Full year

4,129

4,448

3,274

105,252(1,182)

3,677

Q2

3,296

2,113

1,752

103,915

(543)

3,734

Full year

6,074

4,481

3,474

102,603(1,066)

3,497

Q2

3,154

2,268

1,831

100,922

(490)

3,477

4. Cash flow (consolidated)(Millions of yen)

FY ended
March 2018
1st six-month
period ended
September 2018
FY ended
March 2019
1st six-month
period ended
September 2019

Cash flow fromoperating activities

Cash flow frominvestment activities

Cash flow fromfinancing activities

Full year

9,739(3,231)(17,207)

26,169Q2

5,825(3,219)(1,859)26,861

Full year

8,985(6,440)(6,519)22,122Q2

4,593(2,987)(2,079)21,569- 12 -Cash and cash equivalents
at end of fiscal year