Member of Financial Accounting Standards Foundation

Financial Results for the 3rd Quarter of the Fiscal Year Ending March 31, 2022
February 7, 2022
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: Masumi Fujimoto, General Manager of Accounting Department
TEL: +81-6-6281-5721
Expected submission of quarterly report: February 10, 2022
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, 2022 (April 1, 2021 to December 31, 2021)(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)

Millions of yen

Q3 of FY ending March 31, 2022
Q3 of FY ended March 31, 2021

(Note) Comprehensive income

83,991
81,653

Millions of yen

4,895
4,459

%
9.8
15.8

%
53.7
0.9

Millions of yen

4,525
2,943

Millions of yen

3,136
4,622

%
(32.1)
Q3 of FY ending March 31, 2022: 4,006 million yen [(22.3%)]Q3 of FY ended March 31, 2021: 5,159 million yen [%]Quarterly profit per share

Diluted quarterly profit per share

Yen
Yen
Q3 of FY ending March 31, 2022
50.20
25.37
Q3 of FY ended March 31, 2021
75.97
36.55
(Note) The “Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020), etc.
have been applied from the beginning of the first quarter of the consolidated fiscal year ending March 31, 2022. Accordingly, net sales for the third
quarter of the consolidated fiscal year ending March 31, 2022 show the amount after the above-mentioned accounting standard, etc. have been applied,
and the year-on-year percentage change in net sales for the third quarter of the consolidated fiscal year ending March 31, 2022 has been omitted fromthe table above.

(2) Consolidated financial situation

Q3 of FY ending March 31, 2022
FY ended March 31, 2021

(Reference) Shareholders’ equity

Total assets

Net assets

Millions of yen
194,027
190,403

Millions of yen
44,877
41,192

Capital adequacy ratio
%
22.2
20.7

3rd quarter of fiscal year ending March 31, 2022: 43,081 million yen
Fiscal year ended March 31, 2021: 39,476 million yen

2. Dividend payment
Annual dividend per share
End of Q1

End of Q2Yen

FY ended March 31, 2021
FY ending March 31, 2022




FY ending March 31, 2022 (forecast)End of Q3
Yen
0.00



0.00



Year end
Yen

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.

Member of Financial Accounting Standards Foundation

3. Forecast of consolidated performance for fiscal year ending March 31, 2022 (April 1, 2021 to March 31, 2022)(Percentages represent changes from same period in previous year.)Net sales

FY ending March 31, 2022

Operating profit

Profit attributable toowners of parent

Ordinary profit

Profit per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

116,500



6,600

9.7

5,400

0.3

4,000

3.5

63.80

(Note) Revision of the latest forecasts of operational results: No(Note) The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. have been applied fromthe beginning of the first quarter of the consolidated fiscal year ending March 31, 2022. Accordingly, the above-mentioned
forecast of consolidated performance for the fiscal year ending March 31, 2022 shows the amounts after the above-mentioned
accounting standard, etc. have been applied, and the year-on-year percentage change in net sales for the full year of theconsolidated fiscal year ending March 31, 2022 has been omitted from the table above.
* 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: Yes
 Changes of accounting policies other than the above: No Changes in accounting estimates: No
 Retrospective restatement: No(Note) For details, please refer to “2. Quarterly Consolidated Financial Statements and Main Notes (3) Notes on quarterly consolidated financial
statements (Changes in accounting policies)” on page 8 of the attachment.

(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, 2022: 57,752,343 sharesFiscal year ended March 31, 2021: 57,752,343 shares Number of treasury stocks at end of term
3rd quarter of the fiscal year ending March 31, 2022: 95,675 sharesFiscal year ended March 31, 2021: 95,236 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
3rd quarter of the fiscal year ending March 31, 2022: 57,656,940 shares
3rd quarter of the fiscal year ended March 31, 2021: 57,657,784 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(Note on forward-looking statements)
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 numerous factors. Concerning assumptions used as a basis forforecasting business performance 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 ofthe 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, 2021

—

0.00

—

FY ending March 31, 2022

—

0.00

—

FY ending March 31, 2022 (forecast)Class B share

Yen

Yen

Yen

FY ended March 31, 2021

—

0.00

—

FY ending March 31, 2022

—

0.00

—

FY ending March 31, 2022 (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, 2022

 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, 2021 ................................................................................................ 6
Quarterly consolidated statements of comprehensive income
Nine-month period ended December 31, 2021 ................................................................................................ 7(3) Notes on quarterly consolidated financial statements .......................................................................................... 8(Notes on assumption of going concern) ............................................................................................................. 8(Notes on significant changes in shareholders’ equity) ........................................................................................ 8(Changes in accounting policies) ......................................................................................................................... 8(Additional information) ...................................................................................................................................... 8(Segment information, etc.) ................................................................................................................................. 9-1-

Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2022

1. Qualitative Information on Quarterly Results(1) Explanation of operational results
The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. have been
applied from the beginning of the first quarter of the consolidated fiscal year ending March 31, 2022 (April 1,
2021 to June 30, 2021). Accordingly, the Company’s accounting method for revenue recognition for the firstnine-month period of the consolidated fiscal year ending March 31, 2022 (April 1, 2021 to December 31, 2021)
differed from that for the first nine-month period of the previous consolidated fiscal year (April 1, 2020 to
December 31, 2020). Thereby, in the explanation on operational results for the first nine-month period of theconsolidated fiscal year ending March 31, 2022, the Company explained net sales without describing theyear-on-year amount and percentage changes.
During the first nine-month period of the consolidated fiscal year under review, regarding the Japanese economy,
demand recovered for manufacturing industries and service businesses after the declaration of a State ofEmergency was called off. On the other hand, the global economy accelerated its recovery pace since the spread of
new coronavirus infection (hereinafter “COVID-19”) temporally came to a halt. However, the global economic
outlook continued to be uncertain toward the end of the period. This was because of growing concerns over the
possibility that the recovery of demand would suddenly stop due to the rapid spread of COVID-19 variant
infections, mainly in Europe and the U.S., a worldwide supply shortage of components and raw materials andsubsequent rise in their prices, sea transportation bottlenecks and a succeeding increase in transportation costs, andconcerns over geopolitical tensions between the U.S. and China.
Under these circumstances, the Unitika Group has been endeavoring to realize the building of strong businessportfolios, promotion of global business development, and a change in business culture and mind-set—theGroup’s basic policies that place the strengthening of the foundation for a growth phase as the highest priority
under “G-STEP30, the 1st,” a medium-term management plan.
Consequently, the Group reported net sales of 83,991 million yen (versus net sales of 81,653 million yen in theprevious year), operating profit of 4,895 million yen (up 9.8% year on year), ordinary profit of 4,525 million yen(up 53.7% year on year), and profit attributable to owners of parent of 3,136 million yen (down 32.1% year onyear) in the first nine-month period of the consolidated fiscal year under review. The application of the AccountingStandard for Revenue Recognition, etc. caused net sales to decrease by 2,260 million yen.
Here is an overview of the business results by segment.
[Polymers Segment]
The Polymers Segment suffered negative impacts of rising raw material and fuel prices,. However, the segment
saw demand, which declined in the previous year due to the COVID-19 pandemic, recover and sales grow steadily
throughout the period under review.
In the Films business, the packaging sector saw sales grow in food package applications due to continuous
demand from staying at home despite the negative impact of soaring raw material and fuel prices. Furthermore,sales of environmentally friendly food package films, which contribute to the reduction of CO2 emissions, also
increased steadily. In the industrial sector, sales were robust, mainly in electric and electronic applications, whilesales of high-value-added products, such as “UNIPEEL,” a silicon-free release PET film, also increased steadily.
Accordingly, the Films business saw net sales and profit grow.
In the Plastics business, sales as a whole increased, supported by a continuous strong demand in electric andelectronic applications despite a delay in recovery of demand in automotive applications. Demand for nylon resinsand “U-Polymer,” a polyarylate resin, was robust in electrical and electronics applications. Sales of “XecoT,” ahigh-heat-resistant aromatic polyamide resin, grew steadily since the resin was newly adopted in automotive
applications and electric and electronic applications. Sales of raw materials for other functional resins were alsostrong. Accordingly, the Plastics business saw net sales and profit grow.
Consequently, the Polymers segment posted operating profit of 5,553 million yen (up 31.8% year on year) on net
sales of 37,881 million yen (versus net sales of 30,685 million yen in the previous year). The application of the
Accounting Standard for Revenue Recognition, etc. caused net sales to increase by 2,448 million yen.
[Performance Materials Segment]
The Performance Materials Segment saw sales as a whole grow since demand, which decreased due to the
COVID-19 pandemic in the previous year, recovered in the construction and civil engineering applications.
However, the segment had tough times since it suffered negative impact of a rise in cost caused by rising raw
material and fuel prices and turmoil in the ocean freight network.
In the Activated Carbon Fibers business, sales for mainstay water purifier applications were steady due to the
expansion of demand for housing-equipment-related applications, supported by staying at home and spending anda rise in health consciousness. Furthermore, sales for VOC removal applications and environment-related
applications grew strongly.
In the Glass Fibers business, in the industrial materials sector, demand continued recovering in electric- andelectronic-related material applications. Demand for building and civil engineering applications, such as tents andsheets, also picked up from the decline in demand caused by the COVID-19 pandemic in the previous year. In theelectronic materials sector, sales of IC cloth remained robust for semiconductor applications, such as products for
information terminal equipment and peripheral equipment. Sales of high-value-added products, including
super-thin products and materials with low thermal expansion, remained strong.
-2-Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2022

In the Glass Beads business, sales for road applications remained flat from the previous year because of a slow
recovery of demand in some areas. Sales for reflective material applications grew in Japan and abroad. Sales forindustrial applications were also steady in blasting applications.
In the Non-woven Fabrics business, demand stabilized for daily product applications, such as medical gowns, andfor sanitary material applications, such as disinfectant sheets, which increased sharply in the previous year. Sales
for general industrial materials and building applications moderately recovered from the decline in sales due to theimpact of the COVID-19 pandemic in the previous year. However, sales for automotive applications decreased
due to the impact of the semiconductor supply shortage. Sales for skin care applications continued to be sluggish
due to the impact of restraint on the flow of people.
In the Industrial Materials business, sales of polyester staple fibers grew steadily due to robust demand for filter
applications. Furthermore, sales of ultra-high-strength polyester filament yarns increased, supported by a recovery
of demand for building and civil engineering applications, which declined in the previous year due to the
COVID-19 pandemic. However, the profitability of the Industrial Materials business suffered from a rise inproduction costs caused by soaring raw material and fuel prices and chaos in ocean shipping supply chains.
Consequently, the Performance Materials segment posted operating profit of 67 million yen (down 85.3% year onyear) on net sales of 25,499 million yen (versus net sales of 21,798 million yen in the previous year). The
application of the Accounting Standard for Revenue Recognition, etc. caused net sales to increase by 1,751 million
yen.
[Fibers and Textiles Segment]
The Garments, Lifestyle Materials and Bedding business continued to suffer the impact of the COVID-19
pandemic. There were some signs of recovery in demand for some industries in the uniform sector, a mainstay ofthis business, while demand remained very weak in the women’s and sport clothing and bedding sectors. In
addition, demand for medical gowns, whose orders grew in the previous year, leveled off, causing sales of theGarments, Lifestyle Materials and Bedding to decrease.
Consequently, the Fibers & Textiles business posted an operating loss of 689 million yen (versus an operating lossof 133 million yen in the previous year) on net sales of 20,563 million yen (versus net sales of 29,147 million yen
in the previous year). The application of the Accounting Standard for Revenue Recognition, etc. caused net sales
to decrease by 6,460 million yen.
[Others]
The Others category posted an operating loss of 29 million yen (versus an operating loss of 50 million yen in theprevious year) on net sales of 46 million yen (versus net sales of 22 million yen in the previous year). The
application of the Accounting Standard for Revenue Recognition, etc. didn’t have impact on net sales.
(2) Explanation of financial position
Total assets increased by 3,624 million yen from the end of the previous consolidated year to 194,027 million yen
mainly due to a rise in notes and accounts receivable-trade, and contract assets, inventories, and property, plantand equipment despite a decrease in cash and deposits. Liabilities fell by 60 million yen from the end of theprevious consolidated year to 149,150 million yen. This was primarily due to a decline in long-term borrowings
despite a rise in notes and accounts payable-trade. Net assets increased by 3,685 million yen from the end of theprevious consolidated year to 44,877 million yen. This was mainly due to a rise in retained earnings caused by theposting of profit attributable to owners of parent.
(3) Explanation of future forecast information including forecast of consolidated performance
The Company has not revised the forecast of consolidated performance for the full year of the fiscal year ending
March 31, 2022 announced by the “Quarterly Report of Financial Results for the 2nd Quarter of the Fiscal YearEnding March 31, 2022” on November 9, 2021.

-3-

Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2022

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly consolidated balance sheets(Unit: Millions of yen)Q3 of current consolidated
fiscal year ending March 2022
(December 31, 2021)

Previous consolidated
fiscal year
(March 31, 2021)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade
Notes and accounts receivable-trade, andcontract assets
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-

23,37029,182

18,752——

31,53926,033
2,595(91)
81,08829,5312,694(130)82,387

20,10862,647
20,255103,010

20,96362,562
21,591
105,117

1,991
1,991

2,204
2,204

4,378
(65)
4,312
109,314
190,403

4,388
(70)
4,317
111,639
194,027

Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2022

(Unit: Millions of yen)Q3 of current consolidated
fiscal year ending March 2022
(December 31, 2021)

Previous consolidated
fiscal year
(March 31, 2021)
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
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-

13,606
2,130
2,664
923
1,770
40
10,21031,346

16,541
2,105
2,653
150
953
35
10,07432,51492,002
14,324
11,537
117,864
149,21189,82014,92911,885
116,636
149,150100
13,126
25,695(57)
38,865100
13,12628,510(57)
41,680

480

461

16
6,313
(4,374)(1,823)611
1,715
41,192
190,403(0)
6,313(3,753)(1,620)1,401
1,795
44,877
194,027

Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2022

(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income(Quarterly consolidated statements of income)(Nine-month period ended December 31, 2021)(Unit: Millions of yen)
Nine-month period
Nine-month period
ended December 31, 2020
ended December 31, 2021
(April 1, 2020 to(April 1, 2021 to
December 31, 2020)
December 31, 2021)
81,65383,991
Net sales
61,60462,823
Cost of sales
20,04921,167Gross profit
15,59016,271
Selling, general and administrative expenses
4,459
4,895
Operating profit
Non-operating income
2828Interest income
74
58
Dividend income
Share of profit of entities accounted for using equity—
25
method—364
Foreign exchange gains
266
130
Subsidy income
275
206
Other
644
812
Total non-operating income
Non-operating expenses
891
837
Interest expenses
Share of loss of entities accounted for using equity
16—
method974—
Foreign exchange losses
279
345
Other
2,160
1,183
Total non-operating expenses
2,943
4,525
Ordinary profit
Extraordinary income
18195
Gain on sales of non-current assets
3,398
556
Insurance claim income
3,579
652
Total extraordinary income
Extraordinary losses
654
779
Loss on disposal of non-current assets
Loss on tax purpose reduction entry of non-current—
398
assets
424
28
Other
1,079
1,206
Total extraordinary losses
5,443
3,971
Profit before income taxes
622
563
Income taxes – current
187
278
Income taxes – deferred
810
842
Total income taxes
4,633
3,129
Profit11(7)
Profit (loss) attributable to non-controlling interests
4,622
3,136
Profit attributable to owners of parent-6-Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2022

(Quarterly consolidated statements of comprehensive income)(Nine-month period ended December 31, 2021)

ProfitNine-month period ended
December 31, 2020
(April 1, 2020 to
December 31, 2020)
4,633(Unit: Millions of yen)
Nine-month period ended
December 31, 2021
(April 1, 2021 to
December 31, 2021)
3,129

37
23
154

(19)
(16)
709

310

203

525

877

5,159

4,006

5,166

3,926

(7)

80

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-

Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2022

(3) Notes on quarterly consolidated financial statements(Notes on assumption of going concern)
Not applicable(Notes on significant changes in shareholders’ equity)
Not applicable(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020; hereinafter“Revenue Recognition Standard”), etc. have been applied from the beginning of the first quarter of theconsolidated fiscal year ending March 31, 2022. The Company recognizes revenue in the amount that it
expects to receive in exchange for promised goods or services at a point in time when the control of thegoods or services is transferred to customers.
Thereby, if the Company’s performance obligation is to arrange for the provision of goods or services
promised to customers by another party, the Company, as an agent, recognizes revenue on a net basis.
Consequently, net sales and cost of sales for the first nine-month period of the consolidated fiscal year
ending March 31, 2022 each decreased by 2,260 million yen.
The Revenue Recognition Standard, etc. were applied in accordance with the transitional treatment set forthin the proviso of Paragraph 84 of the Revenue Recognition Standard. However, these changes had no impact
on the balance of retained earnings at the beginning of the consolidated fiscal year ending March 31, 2022.
Due to the application of the Revenue Recognition Standard, etc., “Notes and accounts receivable-trade” in“Current assets” on the consolidated balance sheets for the previous consolidated fiscal year were stated as“Notes and accounts receivable-trade, and contract assets” from the first quarter of the consolidated fiscal
year ending March 31, 2022. According to the transitional treatment set forth in Paragraph 89-2 of the
Revenue Recognition Standard, comparative information for the previous consolidated fiscal year was notreclassified by the new method of presentation. Furthermore, in compliance with the transitional treatment
set forth in Paragraph 28-15 of the “Accounting Standard for Quarterly Financial Reporting” (ASBJ
Statement No. 12, March 31, 2020), information on the breakdown of revenue generated from contracts withcustomers for the first nine-month period of the previous consolidated fiscal year was not shown.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019; hereinafter“Fair Value Measurement Standard”), etc. have been applied from the beginning of the first quarter of theconsolidated fiscal year ending March 31, 2022. In accordance with the transitional treatment prescribed in
Paragraph 19 of the Fair Value Measurement Standard and Paragraph 44-2 of the “Accounting Standard for
Financial Instruments” (ASBJ Statement No. 10, July 4, 2019), the Company has decided to apply the new
accounting policies set forth by the Fair Value Measurement Standard into the future. These changes had no
impact on the quarterly consolidated financial statements.
(Additional information)(Application of tax effect accounting for the transition from the consolidated taxation system to the group tax
sharing system)
As to items subject to transition to the group tax sharing system, established under the “Act for Partial
Revision of the Income Tax Act” (Act No. 8 of 2020), and items reviewed under the non-consolidated
taxation system in conjunction with the transition to the group tax sharing system, the Company and some ofits consolidated subsidiaries in Japan have not applied the provisions in Paragraph 44 of the“Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28, February 16, 2018) inaccordance with the treatment under Paragraph 3 of the “Practical Solution on the Treatment of Tax EffectAccounting for the Transition from the Consolidated Taxation System to the Group Tax Sharing System”(ASBJ Practical Issues Task Force (PITF) No. 39, March 31, 2020), and the amounts of deferred tax assets
and deferred tax liabilities were based on the provisions of the Income Tax Act before the revision.
(Impact of the COVID-19 pandemic)
As to the assumption on the impact of the COVID-19 pandemic that the Group described in the Securities
Report (material accounting estimates) for the previous consolidated fiscal year, there were no materialchanges in the first nine-month period of the consolidated fiscal year ending March 31, 2022.

-8-

Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2022

(Segment information, etc.)[Segment Information]
I. 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
Adjustment
consolidated(Note 2)statements ofincome(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 quarterly consolidated statements of income.

4,459

Total

II. Nine-month period ended December 31, 2021 (April 1, 2021 to December 31, 2021)
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
Adjustment
consolidated(Note 2)statements ofincome(Note 3)Polymers

Performance
Materials

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

37,881
3,935

25,4991,267

20,563
161

83,9445,364

46—

83,991
5,364—(5,364)

83,991—

Total

41,816

26,766

20,72589,30846

89,355(5,364)

83,991

Segment income (loss)
5,553
67
(689)
4,930
(29)
4,900
(4)
(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.

4,895

Total

2. Matters concerning the revision of reportable segments(Application of Revenue Recognition Standard, etc.)
As described in (Changes in accounting policies), the Company has changed its accounting method
for revenue recognition by applying the Revenue Recognition Standard, etc. from the beginning of
the first quarter of the consolidated fiscal year ending March 31, 2022.
Consequently, in the first nine-month period of the consolidated fiscal year ending March 31, 2022,
compared to those under the previous accounting method, net sales of the “Polymers” business andthe “Performance Materials” business increased by 2,448 million yen and 1,751 million yen,respectively, while net sales of the “Fibers & Textiles” business decreased by 6,460 million yen.

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