Member of Financial Accounting Standards Foundation

Financial Results for the 1st Quarter of the Fiscal Year Ending March 31, 2020
August 6, 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: August 9, 2019
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 1st quarter of fiscal year ending March 31, 2020 (April 1, 2019 to June 30, 2019)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales

Q1 of FY ending March 31, 2020
Q1 of FY ended March 31, 2019

(Note) Comprehensive income

Operating profit

Millions of yen
30,311
32,036

%
(5.4)
2.1

Millions of yen
1,464
2,612

Quarterly profit
attributable to owners ofparentOrdinary profit%(43.9)(22.9)

Millions of yen
1,091
2,525

%
(56.8)(18.0)

Millions of yen(2,044)
2,242

%
—
(9.2)

Q1 of FY ending March 31, 2020: (1,853) million yen [-%]
Q1 of FY ended March 31, 2019: 1,100 million yen [(49.5%)]
Quarterly net income per share

Diluted quarterly net income per share

Yen(36.85)37.18

Q1 of FY ending March 31, 2020
Q1 of FY ended March 31, 2019

Yen
—
22.68

(2) Consolidated financial situation
Total assets
Q1 of FY ending March 31, 2020
FY ended March 31, 2019

(Reference) Shareholders’ equity

Net assets

Millions of yen
197,283
199,093

Capital adequacy ratio

Millions of yen
39,17741,352

%
18.1
19.0

1st quarter of fiscal year ending March 31, 2020: 35,705 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



FY ending March 31, 2020 (forecast)(Note) Revision of the latest dividend forecast: None

End of Q3
Yen
0.00
0.00

Year end
Yen

Total



Yen
0.00

Yen
0.00



0.00

0.00

(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
Millions of yen

1st half of FY ending March 31, 2020

Operating profit%

63,000 (0.6)
132,000 2.2

FY ending March 31, 2020
(Note) Revision of the latest forecasts of operational results: None

Millions of yen

Profit attributable toowners of parent

Ordinary profit%

2,700 (38.8)
6,500 (20.2)

Millions of yen%

2,000 (53.0)
5,200 (26.7)

Millions of yen

Net income
per share%Yen(1,800)—200 (96.2)(34.01)(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):
1st 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
1st quarter of the fiscal year ending March 31, 2020: 93,925 sharesFiscal year ended March 31, 2019: 93,637 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
1st quarter of the fiscal year ending March 31, 2020: 57,658,526 shares
1st quarter of the fiscal year ended March 31, 2019: 57,660,093 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
FY ended March 31, 2019
FY ending March 31, 2020

Yen
—
—

FY ending March 31, 2020 (forecast)Class B share
FY ended March 31, 2019
FY ending March 31, 2020
FY ending March 31, 2020 (forecast)

Yen
—
—

End of Q2

End of Q3

Yen
0.00

—

Yen

0.00

—
Yen

Year end

Total

Yen
12,000.00

Yen
12,000.00

12,000.00

12,000.00
Yen
23,740.00
23,740.00

Yen
0.00

—

Yen
23,740.00

0.00—

23,740.00

Unitika Ltd. (3103)

Financial results for 1st 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 ...............3
2. Quarterly Consolidated Financial Statements
and Major Notes to Consolidated Financial Statements ...........................................................................4(1) Consolidated quarterly balance sheets ..................................................................................................4(2) Consolidated quarterly statements of income and consolidated quarterly statements ofcomprehensive income .........................................................................................................................6
Consolidated quarterly statements of income
Three-month period ended June 30, 2019........................................................................................6
Consolidated quarterly statements of comprehensive income
Three-month period ended June 30, 2019........................................................................................7(3) Notes on quarterly consolidated financial statements ...........................................................................8(Notes on going concern assumption) ..................................................................................................8(Notes on significant changes in shareholders’ equity) ........................................................................8(Additional information).......................................................................................................................8(Segment information) ..........................................................................................................................9-1-

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2020

1. Qualitative Information on Quarterly Results(1) Explanation of operational results
During the first quarter of the consolidated fiscal year under review, the Japanese economy grewsteadily, supported by good employment and income environment and the effects of the long holidays
commemorating the change of era name to Reiwa. Meanwhile, the outlook for the global economy
remained unclear, although the U.S. economy continued to grow robustly. This was due to intensifying
trade friction between the U.S. and China and lingering geopolitical risks, such as unstable situations in
the Middle East, as well as negative factors, including the slowdown of the Chinese economy, sluggish
demand for semiconductors, and the deterioration of market conditions.
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 30,311 million yen (down 5.4% year on year), operating
profit of 1,464 million yen (down 43.9% year on year), and ordinary profit of 1,091 million yen (down
56.8% year on year) in the three-month period of the consolidated accounting year under review.
Meanwhile, 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 land transfer contract and requested the Mayor of the City to exercise a claim for damages against
the Company. In the court of the second instance, the Nagoya High Court ordered the Mayor to request
the Company to pay the proceeds equivalent to a part of the land the Company had abandoned anddelinquency charges. Accordingly, 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 2,044 million yen in thethree-month period of the consolidated accounting year under review (vs. profit attributable to ownersof parent of 2,242 million yen in the previous year).
The following is an overview of the business results by segment.
[Polymers]
The Polymers business saw the occurrence of fire at the Uji Plant in January 2019 affect production andsales of the Films business and nylon products in the Plastics businesses.
In the Films business, sales in the packaging sector were partly affected by the fire. However, seasonal
products sold steadily and sales of high value-added products, such as EMBLEM HG, a barrier nylon
film, grew robustly in Japan and overseas. In the industrial sector, sales were sluggish due to thedeterioration of market conditions in the area of semiconductor and electronics applications both athome and abroad. Meanwhile, sales of high value-added products, such as Uni-peel, a silicon-free moldrelease PET film, and Uni-amide, a highly heat resistant thermoplastic aromatic polyamide, werestrong.
In the Plastics business, sales of nylon resins decreased due to a decrease in demand caused bystagnated automobile and semiconductor markets and the impact of the fire at the Uji Plant.
Furthermore, sales of U-Polymer, a polyarylate resin, faced an uphill battle for information terminal
equipment applications and automobile applications overseas. Sales of raw materials for otherfunctional resins were also sluggish.
In the Non-woven Fabrics business, sales of polyester spunbond fabrics, in general, grew steadily fordaily product applications and overseas, despite poor sales for civil engineering and interior applications.
THAI UNITIKA SPUNBOND CO., LTD. (TUSCO), a subsidiary in Thailand, saw its efforts toencourage customers to adopt its products at the stage of design pay off for automobile and interior
applications, but overall sales were sluggish due to customers’ inventory adjustment for some
applications. Sales of cotton spunlace grew strongly, supported by steady demand for daily productapplications such as skin care goods, both at home and abroad.
Consequently, the Polymers business posted operating profit of 1,524 million yen (down 34.7% year onyear) on net sales of 14,700 million yen (down 6.6% year on year).

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Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2020

[Advanced Materials]
In the Glass Fibers business, the industrial materials sector saw sales of products for electric andelectronics applications grow steadily, despite poor sales for civil engineering applications. In theelectronic materials sector, sales of IC cloth were weak for information terminal equipment applications,but sales of high value-added products, such as super thin products and materials with a low thermal
expansion, increased robustly.
In the Glass Beads business, sales of products for reflective material and industrial applications, ingeneral, were sluggish, but sales of products for road applications continued to be strong.
In the Activated Carbon Fibers business, sales for our mainstay water purifier applications, especially
faucet built-in water purifiers, remained robust and sales for VOC removal applications also continued
to grow steadily. However, sales for industrial applications remained sluggish.
Consequently, the Advanced Materials business posted operating profit of 231 million yen (down 23.8%
year on year) on net sales of 3,136 million yen (up 2.7% year on year).
[Fibers and Textiles]
In the Industrial Materials business, sales of polyester staple fibers were steady for daily productapplications. Sales of ultra-high-strength polyester filament yarns also grew robustly for civilengineering and building applications. However, sales for other applications were sluggish across theboard.
In the Garments, Lifestyle Materials and Bedding business, sales continued to be weak in the women’s
clothing and sports clothing sectors. In addition, sales of raw fibers for high-functional materials slowed
down. However, sales in the uniform sector, a mainstay of this business, remained strong primarily forcorporate customers. Furthermore, in the Overseas business, sales of denim remained poor.
Consequently, the Fibers and Textiles business posted operating loss of 168 million yen (vs. operating
profit of 94 million yen in the previous year) on net sales of 12,362 million yen (down 3.8% year onyear).
[Others]
The Others category posted an operating loss of 121 million yen (vs. operating loss of 123 million yen
in the previous year) on net sales of 112 million yen (down 71.5% year on year).
(2) Explanation of financial situation
Total assets decreased by 1,809 million yen from the end of the previous consolidated year to 197,283
million yen, mainly due to a decrease in cash and deposits and notes and accounts receivable - trade.
Liabilities increased by 365 million yen from the end of the previous consolidated year to 158,106
million yen, mainly due to the posting of provision for loss on litigation despite a decline in notes andaccounts payable - trade. Net assets fell by 2,174 million yen from the end of the previous consolidated
year to 39,177 million yen. This was mainly due to a decrease in retained earnings caused by theposting of loss attributable to owners of parent.
(3) Explanation of future forecast information including forecast of consolidated performance
Regarding the forecast of consolidated performance, please refer to “Notice Regarding the Posting ofExtraordinary Loss and Revision of the Forecast of Performance” released on July 29, 2019.

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Unitika Ltd. (3103)

Financial results for 1st 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
fiscal year
(March 31, 2019)
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-

Q1 of FY ending March 2020
(June 30, 2019)22,58035,316
29,6392,416(61)
89,891

20,82633,89130,6462,629(60)
87,932

23,002
65,62914,235
102,868

23,02765,636
14,530103,194

1,927
1,927

1,911
1,911

4,444
(37)
4,406
109,202
199,093

4,284
(38)
4,245
109,351
197,283

Unitika Ltd. (3103)

Financial results for 1st 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-5-

Q1 of FY ending March 2020
(June 30, 2019)18,0562,430
99,993
589
1,648
72
8,743
131,534

16,781
2,270
99,331
196
887
67
9,601
129,135

180

165

4

—

—
13,184
12,836
26,206
157,740

2,500
13,401
12,903
28,970158,106100
13,21824,040(56)
37,302

100
13,21821,673(56)
34,935

363

335

(69)
6,412
(3,589)(2,545)571
3,479
41,352
199,093

(113)
6,412
(3,416)(2,448)769
3,472
39,177
197,283

Unitika Ltd. (3103)

Financial results for 1st 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)(Three-month period ended June 30, 2019)(Unit: Millions of yen)Three-month period
ended June 30, 2018
(April 1, 2018 toJune 30, 2018)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rent income
Share of profit of entities accounted for using
equity method
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using
equity method
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on liquidation of subsidiaries andassociates
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on valuation of investment securities
Provision for loss on litigation
Total extraordinary losses
Profit (loss) before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controllinginterests
Profit (loss) attributable to owners of parent-6-

Three-month period
ended June 30, 2019
(April 1, 2019 toJune 30, 2019)

32,03624,055
7,981
5,368
2,612

30,311
23,429
6,882
5,417
1,464

5
37
35

32
37
31

7

—

199
76
360

—
145
247

309

299

—

1

—
137
447
2,525

213
106
620
1,091

401

—

401

—

126
—
—
126
2,800
263
282
545
2,254

225
42
2,500
2,768
(1,677)97278
375(2,052)

11

(8)

2,242

(2,044)

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2020

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

Three-month period ended
June 30, 2019
(April 1, 2019 to June 30, 2019)

Profit (loss)

2,254(2,052)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

13
10(1,266)89(1,153)

(28)
(49)
180
97
199

Comprehensive income

1,100(1,853)

1,163(1,846)(63)(6)

Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests-7-

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2020

(3) 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 of land for industrial use to a third party was a breach of the land transfer contract—the land wastransferred by the City to the Company in 1951—and requested the Mayor of the City to demanddamages against the Company (the Company participated in the lawsuit as an assisting intervener), theNagoya District Court ordered the Mayor to request the Company to pay 6,300 million yen of damages
and delinquency charges on February 8, 2018. The Mayor appealed to the Nagoya High Court against
the decision on February 20, 2018 (the Company 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 around2,094 million yen of damages and delinquency charges. On July 29, 2019, the Mayor appealed to theSupreme Court against the judgement made by court of second instance and made a petition for
acceptance of final appeal. Meanwhile, the Company made reasonable estimates to calculate the amountbasing on the judgement by the High Court and posted 2,500 million yen of provision for loss on
litigation.

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Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2020

(Segment information)[Segment Information]
I. Three-month period ended June 30, 2018 (April 1, 2018 to June 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
Adjustment Consolidated quarterly(Note 2)statements of income(Note 3)

Net sales
Net sales to outside customers

15,741

3,052

12,84831,642393

32,036—32,036

Inter-segment sales or transfers

2,279

234

143

2,657

298

2,956

(2,956)—

Total

18,021

3,287

12,99234,300692

34,992(2,956)32,036

2,333

304

94

2,732

(123)

2,608

3

2,612

Segment income (loss)(Notes) 1. The Other segment includes business segments that are not included in reportable 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. Three-month period ended June 30, 2019 (April 1, 2019 to June 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

Other
(Note 1)

Total

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

Net sales
Net sales to outside customers

14,7003,136

12,36230,199112

30,311—30,311

Inter-segment sales or transfers

2,251

175

135

2,563

18

2,581

(2,581)—

Total

16,952

3,312

12,49832,762130

32,893(2,581)30,311

1,524

231

(168)

1,587

(121)

1,466

(1)

1,464

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.

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