Member of Financial Accounting Standards Foundation

Financial Results for the 2nd Quarter of the Fiscal Year Ending March 31, 2022
November 9, 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: Masumi Fujimoto, General Manager of Accounting Department
TEL: +81-6-6281-5721
Expected submission of quarterly report: November 12, 2021
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, 2022 (April 1, 2021 to September 30, 2021)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales

Millions of yen

Q2 of FY ending March 31, 2022
Q2 of FY ended March 31, 2021

(Note) Comprehensive income

55,51454,828Operating profit
%
—
(9.4)

Millions of yen

3,392
2,798

Quarterly profit
attributable to owners ofparentOrdinary profit

%
21.2
(2.4)

Millions of yen

2,922
1,610

%
81.4
(25.0)

Millions of yen

2,214
3,731

%
(40.7)—

Q2 of FY ending March 31, 2022: 3,260 million yen [(20.8%)]
Q2 of FY ending March 31, 2021: 4,114 million yen [—%]
Quarterly profit per share

Diluted quarterly profit per share
Yen
35.61
61.93

Q2 of FY ending March 31, 2022
Q2 of FY ended March 31, 2021

Yen
18.16
29.48

(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 second quarter of the consolidated fiscal year ending March 31, 2022 show the amount after theabove-mentioned accounting standard, etc. have been applied, and the year-on-year percentage change in net sales for thesecond quarter of the consolidated fiscal year ending March 31, 2022 has been omitted from the table above.
(2) Consolidated financial situation
Total assets
Q2 of FY ending March 31, 2022
FY ended March 31, 2021

(Reference) Shareholders’ equity

Millions of yen
192,017
190,403

Net assets

Capital adequacy ratio

Millions of yen
44,131
41,192

%
22.0
20.7

2nd quarter of fiscal year ending March 31, 2022: 42,314 million yen
Fiscal year ended March 31, 2021: 39,476 million yen

2. Dividend payment
Annual dividend per share
End of Q1
FY ended March 31, 2021
FY ending March 31, 2022
FY ending March 31, 2022 (forecast)End of Q2
YenEnd of Q3
Yen
0.00

Year end
Yen

Total



Yen
0.00

Yen
0.00



0.00

0.00

0.00

(Note) Revision of the latest dividend forecast: None
(Note) The above-mentioned Dividend payment refers to dividends paid to the holders of common stock. For details of dividend
payment to the holders of class shares (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.

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
Millions of yen

FY ending March 31, 2022

116,500

Operating profit%

Millions of yen



6,600

Profit attributable toowners of parent

Ordinary profit%

9.7

Millions of yen

5,400

%

0.3

Millions of yen

4,000Profit per
share

%

3.5

Yen

63.80

(Note) Revision of the latest forecasts of operational results: Yes(Note) 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. 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 the consolidated 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): None
New companies: ― (company name)
Excluded companies: ― (company name)(2) Adoption of special accounting methods for preparing quarterly consolidated financial statements: None
(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: None
 Changes in accounting estimates: None Retrospective restatement: None

(Note) For details, please refer to 2. Quarterly Consolidated Financial Statements and Main Notes (4) Notes on quarterly consolidated financial
statements (Changes in accounting policies) on page 10 of the attachment.

(4) Number of shares outstanding (Common stock) Number of shares outstanding at end of term (including treasury share):2nd 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 shares at end of term
2nd quarter of the fiscal year ending March 31, 2022: 95,485 sharesFiscal year ended March 31, 2021: 95,236 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
2nd quarter of the fiscal year ending March 31, 2022: 57,657,021 shares
2nd quarter of the fiscal year ended March 31, 2021: 57,657,898 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 4 of the attachment.

(Method to obtain the supplementary documents for quarterly financial results)
The Company plans to hold a conference call for institutional investors and securities analysts for quarterly financial results on Wednesday,
November 24, 2021. It plans to post the supplementary documents for quarterly financial results to be used in this investor conference call on its
website.

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, 2021
FY ending March 31, 2022

Yen
—
—

End of Q2
Yen
0.00
0.00

FY ending March 31, 2022 (forecast)Class B share
FY ended March 31, 2021
FY ending March 31, 2022
FY ending March 31, 2022 (forecast)

Yen
—
—

Yen
0.00
0.00

End of Q3
Yen

Year end

Total

—

Yen
12,000.00

Yen
12,000.00—

12,000.00

12,000.00—

Yen
23,740.00

Yen
23,740.00—

23,740.00

23,740.00

YenUnitika Ltd. (3103)

Financial Results for 2nd 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 ...................... 4
2. Quarterly Consolidated Financial Statements and Main Notes ........................................................................ 5(1) Quarterly consolidated balance sheets ......................................................................................................... 5(2) Quarterly consolidated statements of income and quarterly consolidated statements ofcomprehensive income ................................................................................................................................ 7
Quarterly consolidated statements of income
Six-month period ended September 30, 2021 ......................................................................................... 7
Quarterly consolidated statements of comprehensive income
Six-month period ended September 30, 2021 ......................................................................................... 8(3) Quarterly consolidated statements of cash flows ......................................................................................... 9(4) Notes on quarterly consolidated financial statements ................................................................................ 10(Notes on assumption of going concern) ................................................................................................... 10(Notes on significant changes in shareholders’ equity) ............................................................................. 10(Changes in accounting policies)............................................................................................................... 10(Additional information) ........................................................................................................................... 10(Segment information, etc.) ....................................................................................................................... 11
3. Supplementary Materials ................................................................................................................................ 12-1-

Unitika Ltd. (3103)

Financial Results for 2nd 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 firstsix-month period of the consolidated fiscal year ending March 31, 2022 differed from those for the first six-month
period of the previous consolidated fiscal year. Thereby, in the explanation on operational results for the firstsix-month period of the consolidated fiscal year ending March 31, 2022, the Company explained net sales without
describing the year-on-year amount and percentage changes.
During the first six-month period of the consolidated fiscal year under review (April 1, 2021 to September 30,2021), the Japanese economy experienced ups and downs amid the intermittent declaration of a State ofEmergency. Manufacturing industries showed steady recovery supported by robust demand from overseas, but
service businesses, such as restaurants and hotels, were in difficult conditions. On the other hand, the global
economy, in general, continued on a recovery path due to the progress of vaccinations against new coronavirus
infection (hereinafter “COVID-19”), although the recovery speed varied depending on the country and region.
However, the global economic outlook continued to be uncertain due to the spread of COVID-19 variants, aworldwide supply shortage of and rise in prices of components and raw materials, and concerns over geopoliticaltensions 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 55,514 million yen (versus net sales of 54,828 million yen in theprevious year), operating profit of 3,392 million yen (up 21.2% year on year), ordinary profit of 2,922 million yen(up 81.4% year on year), and profit attributable to owners of parent of 2,214 million yen (down 40.7% year onyear) in the first six-month period of the consolidated fiscal year under review. The application of the AccountingStandard for Revenue Recognition, etc. caused net sales to decrease by 1,444 million yen.
Here is an overview of the business results by segment.
[Polymers Segment]
The Polymers Segment suffered negative impacts of soaring raw material and fuel prices, chaos in ocean shipping
supply chains, and restraint on people’s activity due to the COVID-19 pandemic. However, the segment saw
demand, which declined in the previous year due to the pandemic, recover and sales grow steadily throughout theperiod under review.
In the Films business, the packaging sector saw sales grow steadily in food package applications due to continuous
strong demand from staying at home. Furthermore, sales of high-value-added products, such as EMBLEM HG, abarrier nylon film, continued to grow robustly in Japan and overseas. In addition, the adoption of environmentallyfriendly food package films, which contribute to the reduction of CO2 emissions, also grew. In the industrial sector,
sales were robust, mainly in semiconductor-related applications, while sales 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 increased supported by a continuing recovery in demand, which decreased due to theimpact of the COVID-19 pandemic in the previous year. Sales of nylon resins increased due to a recovery indemand for mainly automotive applications and electrical and electronics applications. Furthermore, sales of
U-Polymer, a polyarylate resin, grew robustly for automotive applications and information terminal equipment
applications. Sales of XecoT, a high-heat-resistant aromatic polyamide resin, grew steadily due to successful
development of a new automotive application. Sales of raw materials for other functional resins were also strong.
Accordingly, the Plastics business saw net sales and profit grow.
Consequently, the Polymers segment posted operating profit of 3,818 million yen (up 59.1% year on year) on net
sales of 25,151 million yen (versus net sales of 20,193 million yen in the previous year). The application of the
Accounting Standard for Revenue Recognition, etc. caused net sales to increase by 1,610 million yen.
[Performance Materials Segment]
The Performance Materials Segment faced negative effects of rising raw material and fuel prices, turmoil in theocean freight network, the reduction of automobile production due to the shortage of semiconductor supply, andrestraint on people’s activity due to the COVID-19 pandemic.
In the Activated Carbon Fibers business, sales for mainstay water purifier applications were steady, supported by arecovery in demand for housing-equipment-related applications and VOC removal applications. Sales forenvironment-related applications grew due to robust demand for electronic-industry-related applications.
In the Glass Fibers business, in the industrial materials sector, sales for electric- and electronic-related material
applications recovered. However, sales for building and civil engineering applications, such as tents and sheets,
were weak due to a slow recovery from the decline in demand caused by the COVID-19 pandemic. 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-2-Unitika Ltd. (3103)

Financial Results for 2nd Quarter of Fiscal Year Ending March 31, 2022

super-thin products and materials with low thermal expansion, were robust.
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 and the impact of disasters caused by torrential rain. Sales for reflective
material applications grew in Japan and abroad. Sales for industrial applications were also steady, supported by arecovery of automobile production.
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. As forgeneral industrial materials applications, sales for building applications moderately recovered from the decline insales due to the impact 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 in overseas
markets and for filter applications. Furthermore, sales of ultra-high-strength polyester filament yarns increased
across the board, supported by a gradual 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 the rise in production costs caused by soaring raw material and fuel prices andchaos in ocean shipping supply chains.
Consequently, the Performance Materials segment posted operating profit of 20 million yen (down 93.3% year onyear) on net sales of 16,848 million yen (versus net sales of 14,546 million yen in the previous year). The
application of the Accounting Standard for Revenue Recognition, etc. caused net sales to increase by 1,163
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 in the uniform sector, a mainstay of this 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 the Garments, Lifestyle Materials andBedding profitability to decrease.
Consequently, the Fibers & Textiles segment posted an operating loss of 444 million yen (versus an operating
profit of 165 million yen in the previous year) on net sales of 13,476 million yen (versus net sales of 20,073
million yen in the previous year). The application of the Accounting Standard for Revenue Recognition, etc.
caused net sales to decrease by 4,218 million yen.
[Others]
The Others category posted an operating loss of 14 million yen (versus an operating loss of 33 million yen in theprevious year) on net sales of 37 million yen (versus net sales of 14 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 1,614 million yen from the end of the previous consolidated year to 192,017 million yen
mainly due to a rise in inventories. Liabilities fell by 1,324 million yen from the end of the previous consolidated
year to 147,886 million yen. This was primarily due to a decline in long-term borrowings. Net assets increased by
2,938 million yen from the end of the previous consolidated year to 44,131 million yen. This was mainly due to arise in retained earnings caused by the posting of profit 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 5,067 million yen (down 36.5% year on year) during thefirst six-month period of the current consolidated fiscal year due to the posting of profit before income taxes, adecrease in trade receivables, and an increase in trade payables despite a rise in inventories.
(Net cash provided by [used in] investing activities)
Net cash used in investment activities amounted to 4,252 million yen during the first six-month period of thecurrent consolidated fiscal year (3,297 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 2,031 million yen during the first six-month period of thecurrent consolidated fiscal year (1,681 million yen used in the same period of the previous consolidated fiscal
year) mainly due to repayment of borrowings.
As a result, cash and cash equivalents at the end of the second quarter of the consolidated fiscal year underreview decreased by 987 million yen from the end of the previous consolidated fiscal year to 21,605 million
yen.

-3-

Unitika Ltd. (3103)

Financial Results for 2nd Quarter of Fiscal Year Ending March 31, 2022

(3) Explanation of future forecast information including forecast of consolidated performance
Considering estimates that demand, which recovered in the first six-month period of the current fiscal year, willremain steady and rises in raw material and fuel prices and distribution costs will continue to affect its profitability
for a while, the Company has revised the forecast of consolidated performance for the full year of the fiscal year
ending March 31, 2022 announced on August 5, 2021 as follows.
Revision of the full year forecast of consolidated performance for the fiscal year ending March 31, 2022 (April 1,
2021 to March 31, 2022)
OperatingprofitNet sales
Previous forecast (A)Ordinary profit(Millions of yen) (Millions of yen) (Millions of yen)
113,000
7,000
5,600

Profit attributable toowners of parent(Millions of yen)
4,700

Revised forecast (B)116,500

6,600

5,400

4,000

Changes (B − A)

3,500

(400)

(200)

(700)

Percentage change (%)

3.1

(5.7)

(3.6)

(14.9)

110,375

6,018

5,381

3,864

(Reference) Performance of theprevious fiscal year (the year
ended March 31, 2021)-4-

Profit per
share

Yen
75.94
63.80

61.44

Unitika Ltd. (3103)

Financial Results for 2nd Quarter of Fiscal Year Ending March 31, 2022

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly consolidated balance sheets

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(Unit: Millions of yen)Q2 of current consolidated
fiscal year ending March 2022
(September 30, 2021)

Previous consolidated
fiscal year
(March 31, 2021)-5-23,37029,182

22,424

28,374

26,033
2,595(91)
81,08827,7332,611(119)81,024

20,10862,647
20,255103,010

21,05162,563
20,819104,434

1,991
1,991

2,185
2,185

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

4,443
(69)
4,373
110,993
192,017

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
A product repair reserve fund
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
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

Financial Results for 2nd Quarter of Fiscal Year Ending March 31, 2022

(Unit: Millions of yen)Q2 of current consolidated
fiscal year ending March 2022
(September 30, 2021)

Previous consolidated
fiscal year
(March 31, 2021)-6-

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

14,446
2,105
2,657
580
1,714
36
9,436
30,97692,002
14,324
11,537
117,864
149,21190,47914,715
11,713116,909
147,886100
13,126
25,695(57)
38,865100
13,126
27,588(57)
40,757

480

482

16
6,313
(4,374)(1,823)20
6,313(3,572)(1,688)

611

1,556

1,715
41,192
190,403

1,816
44,131
192,017

Unitika Ltd. (3103)

Financial Results for 2nd 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)(Six-month period ended September 30, 2021)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using
equity method
Rental income
Subsidy income
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 sale of non-current assets
Insurance claim income
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on tax purpose reduction entry of
non-current assets
Loss on valuation of investment securities
Loss on litigation
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

Six-month period
ended September 30, 2020
(April 1, 2020 to
September 30, 2020)
54,82841,587
13,241
10,443
2,798(Unit: Millions of yen)Six-month period
ended September 30, 2021
(April 1, 2021 toSeptember 30, 2021)
55,514
41,375
14,13910,747
3,392

21
49

20
35



8

41
72
149
334

40
106
115
327

584

561

24



726
186
1,522
1,610


235
797
2,922

135
3,398
3,534

94
556
650

691

438



398

26
70
187
976
4,169
499
(61)
437
3,731
(0)
3,731



25
863
2,710
464
32
496
2,213
(0)
2,214

-7-

Unitika Ltd. (3103)

Financial Results for 2nd Quarter of Fiscal Year Ending March 31, 2022

(Quarterly consolidated statements of comprehensive income)(Six-month period ended September 30, 2021)

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests

Six-month period ended
September 30, 2020
(April 1, 2020 to
September 30, 2020)
3,731(Unit: Millions of yen)Six-month period ended
September 30, 2021
(April 1, 2021 toSeptember 30, 2021)
2,213

48

2

(4)
132

4
904

207

135

383
4,114

1,047
3,260

4,124

3,159

(10)

101

-8-

Unitika Ltd. (3103)

Financial Results for 2nd Quarter of Fiscal Year Ending March 31, 2022

(3) Quarterly consolidated statements of cash flows

Cash flows from operating activities
Profit before income taxes
Depreciation
Loss on tax purpose reduction entry of non-current assets
Business restructuring expenses
Loss on litigation
Insurance claim income
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Increase (decrease) in a product repair reserve fund
Increase (decrease) in other provisions
Interest expenses
Loss (gain) on disposal of non-current assets
Loss (gain) on sale of non-current assets
Loss (gain) on valuation of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Proceeds from insurance income
Payments for loss on litigation
Net cash provided by (used in) operating activities
Cash flows from investing activities
Decrease (increase) in time deposits
Purchase of investment securities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for retirement of property, plant and equipment
Proceeds from sale of shares of subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
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-Six-month period ended
September 30, 2020
(April 1, 2020 to
September 30, 2020)(Unit: Millions of yen)Six-month period ended
September 30, 2021
(April 1, 2021 toSeptember 30, 2021)

4,169
2,412

184
70
(3,398)
(14)
400

(2)
584
691
(135)
26
3,957
526
(2,668)
435
7,239
71
(560)
(199)
4,064
(2,636)
7,979

2,710
2,426
398


(556)
32
511
(4)
(56)
561
438
(94)

883
(1,635)
728
(226)
6,117
56
(591)
(671)
157

5,067

198
(6)
(3,108)
165
(433)

(0)
(5)
(3,816)
244
(251)

197



(311)
(3,297)(423)(4,252)

117
40(1,335)(321)(181)(1,681)(171)
2,829
18,19421,023(119)

(1,529)(321)(60)(2,031)
228(987)
22,593
21,605

Unitika Ltd. (3103)

Financial Results for 2nd Quarter of Fiscal Year Ending March 31, 2022

(4) 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 six-month period of the consolidated fiscal year ending
March 31, 2022 each decreased by 1,444 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 not reclassified
by the new method of presentation. Furthermore, in compliance with the transitional treatment set forth inParagraph 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 with customers for the
first six-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 of its
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) in accordance with thetreatment under Paragraph 3 of the Practical Solution on the Treatment of Tax Effect Accounting for theTransition 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 six-month period of the consolidated fiscal year ending March 31, 2022.

- 10 -

Unitika Ltd. (3103)

Financial Results for 2nd Quarter of Fiscal Year Ending March 31, 2022

(Segment information, etc.)[Segment Information]
I. Six-month period ended September 30, 2020 (April 1, 2020 to September 30, 2020)
1. Information on net sales, income or loss by reportable segment
Reportable segment
Polymers

Performance
Materials

Fibers &Textiles

Total

Other
(Note 1)

Total

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

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

20,193

14,546

20,07354,81414

54,828



54,828

3,747

2,378

136

6,263



6,263

(6,263)



Total

23,941

16,925

20,21061,077

14

61,091(6,263)54,828

2,400
302
165
2,867
(33)
2,834
(35)
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.

2,798

II. Six-month period ended September 30, 2021 (April 1, 2021 to September 30, 2021)
1. Information on net sales, income or loss by reportable segment
Reportable segment
Polymers

Performance Fibers &Materials
Textiles

Total

Other
(Note 1)

Total

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

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

25,151

16,84813,47655,47737

55,514



55,514

2,493

899

111

3,504



3,504

(3,504)



Total

27,645

17,74813,58758,981

37

59,018(3,504)55,514

3,818
20
(444)
3,394
(14)
3,379
12
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.

3,392

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 forrevenue recognition by applying the Revenue Recognition Standard, etc. from the beginning of the firstquarter of the consolidated fiscal year ending March 31, 2022.
Consequently, in the first six-month period of the consolidated fiscal year ending March 31, 2022, comparedto those under the previous accounting method, net sales of the Polymers business and the Performance
Materials business increased by 1,610 million yen and 1,163 million yen, respectively, while net sales of theFibers & Textiles business decreased by 4,218 million yen.

- 11 -

Unitika Ltd. (3103)

Financial Results for 2nd Quarter of Fiscal Year Ending March 31, 2022

3. Supplementary Materials
1. Results and earnings forecast for fiscal year ending March 2022 (consolidated)

FY ended March
2020
FY ended March
2021
FY ending March
2022
Comparison withprevious year

Consolidated(Millions of yen)

Net sales

OperatingprofitOrdinary
profitProfit attributableto owners of parent

Full year

119,537

5,467

3,153

(2,158)Q2
Full year
Q2
Full year (forecast)
Q2
Full year

54,828110,375
55,514
116,500
685
6,124

2,798
6,018
3,392
6,600
593
581

1,610
5,381
2,922
5,400
1,311
18

3,731
3,864
2,214
4,000
(1,517)135

2. Segment information (consolidated)(Millions of yen)
Polymers

Results forprevious
fiscal year
Results for
current
fiscal year

1st six-month
period ended
September
2020(Results)
1st six-month
period ended
September
2021(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 (%)

Operating profit

Increase/decrease fromprevious year (%)

Performance
Fibers & Textiles
Materials

Other Adjustment

Consolidated
total

20,193

14,546

20,073

14—

54,828

36.8
2,400
85.8

26.5
302
10.8

36.6
165
5.9

0.0
(33)
(1.2)

—

100.0
2,798
100.0

25,151

16,84813,47637—

55,514

45.3
3,818
112.6

30.3
20
0.6

24.3
(444)
(13.1)

0.1
(14)
(0.4)

—

4,958

2,302

(6,597)

22

—

—

—

1,418

(281)

59.1

(93.3)

—

—
(609)

—

(35)
(1.3)

685

—

18
—

100.0
3,392
100.0

12
0.4

—
48

593

—

21.2

3. Capital expenditures, Depreciation (Property, plant and equipment), R&D expenditures, Interest-bearing liabilities,
Financial account balance, Number of permanent employees (consolidated)(Millions of yen, persons)

FY ended
March 2020
1st six-month
period ended
September 2020
FY ended
March 2021
1st six-month
period ended
September 2021

Capitalexpenditures

Depreciation(Property,
plant andequipment)

R&D
expenditures

Full year

9,316

4,765

3,624

99,595(1,014)

3,438

Q2

3,033

2,179

1,832

98,313

(513)

3,435

Full year

7,387

4,517

3,639

96,798(1,054)

3,007

Q2

3,575

2,168

1,784

95,243

(505)

3,020

Interest-bearing
Financialliabilities (endaccount balanceof fiscal year)

4. Cash flow (consolidated)

FY ended
March 2020
1st six-month
period ended
September 2020
FY ended
March 2021
1st six-month
period ended
September 2021

(Millions of yen)

Cash flow fromoperating activities

Cash flow frominvestment activities

Cash flow fromfinancing activities

Full year

9,797(10,192)(3,482)

18,194

Q2

7,979(3,297)(1,681)

21,023Full year

14,869(6,171)(4,141)

22,593Q2

5,067(4,252)(2,031)

21,605- 12 -

Number ofpermanent
employees(persons)

Cash and cash equivalents
at end of fiscal year