Member of Financial Accounting Standards Foundation

Financial Report for Fiscal Year ended March 31, 2021 [Japanese GAAP] (Consolidated)
May 13, 2021
Company name: Unitika Ltd.
Listed stock exchange: Tokyo Stock Exchange
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 date for holding a regular shareholders meeting: June 29, 2021
Expected date for submitting securities report: June 29, 2021
Expected commencement date for paying dividend: –Preparation of the attachment of Financial Report: Yes
Holding of a results presentation: Yes (for securities analysts and institutional investors)(Figures rounded down to nearest million yen.)

1. Consolidated performance for fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(Percentages represent changes from same period in previous year.)(1) Consolidated business results
Net sales

Operating profit

Millions of yen

FY ended March 31, 2021
FY ended March 31, 2020
(Note) Comprehensive income% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen

110,375
(7.7)
6,018
10.1
5,381
70.6
119,537(7.4)
5,467(32.9)
3,153(55.5)FY ended March 31, 2021: 3,811 million yen [ %]FY ended March 31, 2020: (2,097) million yen [ %]Diluted profit per
Return on equity
Return on asset
Profit per share
share
Yen

FY ended March 31, 2021
61.44
(43.01)
FY ended March 31, 2020
(Reference) Equity in earnings/losses of affiliates

Yen

%

30.85
10.3
(5.9)

FY ended March 31, 2021: (0) million yen
FY ended March 31, 2020: 13 million yen(2) Consolidated financial situation

Total assets

Net assets

Millions of yen

Millions of yen%

FY ended March 31, 2021
FY ended March 31, 2020

2. Dividend payment

Cash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

14,869
9,797(6,171)(10,192)(4,141)(3,482)

Annual dividend per share
End of Q1Yen

FY ended March 31, 2020
FY ended March 31, 2021
FY ending March 31, 2022
(forecast)

Cash flows frominvesting activities

End of Q2

End of Q3

Yen

Yen




0.00
0.00



0.00

Year end

Ratio of operating
profit to sales

%

5.5
4.6

Net assets per share

Yen

20.7
18.3

(3) Consolidated cash flows situation
Cash flows fromoperating activities

%

Total

Yen

Yen




0.00
0.00

0.00
0.00



0.00

0.00

%




2.8
1.6

Capital adequacy ratio

FY ended March 31, 2021
190,403
41,192
FY ended March 31, 2020
193,726
38,933(Reference) Shareholders’ equity: FY ended March 31, 2021: 39,476 million yen
FY ended March 31, 2020: 35,481 million yen

3,864(2,158)257.67188.37

Balance of cash andcash equivalents atperiod end

Millions of yen

22,59318,194

Annualdividends paid
(Total)Dividend
payout ratio(consolidated)

Dividend ratioof net assets(consolidated)










Millions of yen

%

%



(Note) The abovementioned Dividend payment refers to dividends paid to the holders of common stock. For details of dividend payment to the holdersof class shares (unlisted), the rights of which are different from those of common stock, please refer to Dividend payment to the holders of classshares mentioned below.

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

Operating profit

Millions of yen% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen

1st half of FY ending March
31, 2022 (cumulative)

53,000(3.3)

2,500 (10.7)

FY ending March 31, 2022

111,000

0.6

6,100

1.4

Profit per
share

%

Millions of yen

%

Yen

1,800

11.7

1,000

(73.2)

14.55

4,700

(12.7)

4,000

3.5

63.80

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying change ofscope of consolidation): Yes
New companies: One (company name) UNITIKA EUROPE GmbH
Excluded companies: One (company name) COSOF Co., Ltd.
(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement(i) Changes in accounting policies due to revisions of accounting standards: No(ii) Changes of accounting policies other than the above: No(iii) Changes in accounting estimates: No(iv) Retrospective restatement: No(3) Number of shares outstanding (Common stock)(i) Number of shares outstanding at end of term (including treasury share):Fiscal year ended March 31, 2021: 57,752,343 sharesFiscal year ended March 31, 2020: 57,752,343 shares(ii) Number of treasury shares at end of term
Fiscal year ended March 31, 2021: 95,236 sharesFiscal year ended March 31, 2020: 94,343 shares(iii) Average number of shares outstanding during the term
Fiscal year ended March 31, 2021: 57,657,660 sharesFiscal year ended March 31, 2020: 57,658,293 shares(Reference) Summary of non-consolidated performanceNon-consolidated performance for fiscal year ended March 31, 2021 (April 1, 2020 to March 31, 2021)(Percentages represent changes from same period in previous year.)(1) Non-consolidated business results
Net sales

FY ended March 31, 2021
FY ended March 31, 2020

Millions of yen%

69,97876,150

(8.1)
(5.2)

Profit per share
FY ended March 31, 2021
FY ended March 31, 2020

Operating profit
Millions of yen

Total assets

Millions of yen

ProfitMillions of yen%

Millions of yen

%

5,504
7.2
5,136 (25.7)

5,189
3,224

61.0
(49.2)

3,265(2,075)

Diluted profit per share

Yen

51.07
(41.58)(2) Non-consolidated financial situation

Ordinary profit

%

Yen

26.07


Net assets

Millions of yen

FY ended March 31, 2021
174,351
40,088FY ended March 31, 2020
172,848
37,008(Reference) Shareholders’ equity: FY ended March 31, 2021: 40,088 million yen
FY ended March 31, 2020: 37,008 million yen

Capital adequacy ratio

%

23.0
21.4

Net assets per shareYen

268.28214.85* The financial report 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 and assumptions 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 business performance and precautionary statements when using the forecast of performance,
please refer to 1. Overview of Business Performance (4) Future forecast on page 4 of the attachment.
(Method to obtain information on the presentation of financial results)
The Company plans to hold a results presentation conference call for securities analysts and institutional investors on Tuesday, May 25, 2021. It plans
to post on its website supplementary documents to the financial results to be distributed at the results presentation.

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 as follows:
Annual dividends
End of Q1
Class A share
FY ended March 31, 2020
FY ended March 31, 2021——

FY ending March 31, 2022 (forecast)—Yen

End of Q2

Yen

0.00
0.00

—
—

0.00

—

Class B share
FY ended March 31, 2020
FY ended March 31, 2021

—
—

0.00
0.00

FY ending March 31, 2022 (forecast)

—

0.00

Yen

End of Q3

Yen

Yen

Yen

Year end

Total

Yen

Yen

12,000.00
12,000.00

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—

23,740.00

23,740.00

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2021

 Table of contents for the attachment
1. Overview of Business Performance.......................................................................................................................... 2(1) Overview of business performance of the year ................................................................................................... 2(2) Overview of financial position............................................................................................................................ 3(3) Overview of cash-flow........................................................................................................................................ 3(4) Future forecast .................................................................................................................................................... 4(5) Basic policy for profit distribution and dividends for the fiscal year ended March 31, 2021
and the fiscal year ending March 31, 2022 ......................................................................................................... 4
2. Basic Approach to the Selection of Accounting Standards ...................................................................................... 4
3. Consolidated Financial Statements and Major Notes to Consolidated Financial Statements................................... 5(1) Consolidated balance sheets ............................................................................................................................... 5(2) Consolidated income statement and consolidated comprehensive income statement ........................................ 7(Consolidated income statement) ........................................................................................................................ 7(Consolidated comprehensive income statement) ............................................................................................... 8(3) Consolidated statements of changes in net assets ............................................................................................... 9(4) Consolidated statements of cash flow ............................................................................................................... 11(5) Notes on consolidated financial statements ...................................................................................................... 12(Notes on going concern assumption) ............................................................................................................... 12(Significant items that are the basis for preparation of consolidated financial statements) .............................. 12(Additional information) ................................................................................................................................... 12(Segment information, etc.)............................................................................................................................... 13(Per share information) ..................................................................................................................................... 15(Material subsequent events)............................................................................................................................. 15
4. Supplemental Materials .......................................................................................................................................... 16-1-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2021

1. Overview of Business Performance(1) Overview of business performance of the year
During the consolidated fiscal year under review (April 1, 2020 to March 31, 2021), the Japanese economy worsened
rapidly due to the spread of the COVID-19 pandemic. Thereafter, economic activities gradually resumed sincemeasures to prevent further spread of infection were implemented. However, there were growing signs of economic
slowdown because of the re-expansion of the pandemic during the winter. Meanwhile, the global economic outlook
continued to be uncertain since there were concerns that economic doldrums would linger due to no light seen at theend of the COVID-19 tunnel. Epidemic prevention measures were enhanced since the pace of infections reaccelerated
in the Northern Hemisphere during the wintertime and infections with new variants increased, although people’s
expectations for the containment of the pandemic rose due to the commencement of vaccinations.
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—the Group’s
basic policies that place the strengthening of the foundation for a growth phase as the highest priority under G-STEP30,
the 1st, a new three-year medium-term management plan announced in May 2020.
Consequently, the Group reported net sales of 110,375 million yen (down 7.7% year on year), operating profit of
6,018 million yen (up 10.1% year on year), and ordinary profit of 5,381 million yen (up 70.6% year on year).
Meanwhile, profit attributable to owners of parent amounted to 3,864 million yen (versus loss attributable to ownersof parent of 2,158 million yen in the previous year) in the consolidated fiscal year under review. This was because theGroup posted insurance claim income of 3,676 million yen related to a fire that broke out at the Uji Plant on January,
2019 as an extraordinary income and also recorded impairment loss of 3,397 million yen for business assets of
OSAKA DYEING CO., LTD., a consolidated subsidiary, and the Fibers Division of Unitika Ltd.
Here is an overview of the business results by segment.
From the current fiscal year, the Company has changed its reportable segment classification. For a year-on-yearcomparison of operational results mentioned below, the change applies retrospectively to the results for the previous
fiscal year. For details, please refer to “3. Consolidated Financial Statements and Major Notes to Consolidated
Financial Statements (5) Notes on consolidated financial statements (Segment information, etc.)”[Polymers Segment]
In the Polymers segment, restoration from the fire incident at the Uji Plant progressed steadily. However, sales
decreased in the industrial field, such as automotive and electric and electronics applications, due to the spread of the
COVID-19 pandemic.
In the Films business, the packaging sector saw sales grow steadily, supported by a temporary rise in sales in the foodfield due to demand from staying at home, despite a fall in sales of goods for convenience stores and confectionery
souvenirs due to self-restraint concerning nonessential outings. Furthermore, sales of high-value-added products, suchas EMBLEM HG, a barrier nylon film, continued to grow robustly in Japan and overseas. In the industrial sector,
demand continued to be strong in the semiconductor field. Regarding sales of high-value-added products, sales of
UNIPEEL, a silicon-free release PET film, increased steadily, but sales of Uni-amide, a high heat-resistant polyamide
film, decreased. Accordingly, the sector saw net sales fall but profit remain flat.
In the Plastics business, sales of nylon resins decreased in many applications, including electric and electronic
applications, building materials applications, and daily sundries applications, but recovered in automotive applications
from the second half of the fiscal year despite a fall in sales due to declining production. Sales of U-Polymer, apolyarylate resin, were sluggish in overseas sales as well as in information terminal equipment, office equipment, anddaily commodities applications. Sales of raw materials for functional resins also decreased due to the impact ofstagnated consumer spending and production. Accordingly, the sector saw net sales and profit decline.
Consequently, the Polymers segment reported a fall in net sales and operating profit. Specifically, the segment posted
operating profit of 5,682 million yen (down 0.7% year on year) on net sales of 41,436 million yen (down 9.3% year
on year).
[Performance Materials Segment]
In the Performance Materials segment, sales of materials for medical gowns and some sanitary goods increased dueto the spread of the COVID-19 pandemic, but sales for many applications, such as automotive and building and civilengineering applications, were affected by the pandemic.
In the Activated Carbon Fibers business, sales for environment-related applications were steady due to robust demandfor electronic industry-related applications. However, sales for mainstay water purifier applications were sluggish due
to decreases in sales for commercial-use applications and VOC removal applications in addition to sales for housing
equipment-related applications.

-2-Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2021

In the Glass Fibers business, in the industrial materials sector, sales of tents and sheets, etc. for building and civilengineering applications were weak due to the restraint of capital expenditures and the postponement and cancellationof projects, while sales for automobile and environment-related applications recovered in the second half of the fiscal
year. In the electronic materials sector, sales of IC cloth, especially high-value-added products, such as super-thinproducts and materials with low thermal expansion, were robust for information terminal equipment-related
applications. Furthermore, sales for semiconductor applications, such as products for personal computers and servers,
were also steady.
In the Glass Beads business, sales for industrial applications decreased due to a fall in demand for machinerycomponent-related applications, mainly automobiles. Furthermore, sales for reflective material and road applications
also remained weak.
In the Non-woven Fabrics business, sales for industrial materials applications, centering on building and civilengineering applications, automotive applications and skin care applications in Japan were sluggish. On the other
hand, sales for daily product applications were steady, supported by growing demand for medical gowns anddisinfectant sheets.
In the Industrial Materials business, sales of polyester staple fibers for building material and automotive applications
remained weak, while their sales for daily product applications were steady due to a temporary rise in demand due tothe spread of the COVID-19 pandemic. Sales for industrial materials applications were also strong. Furthermore, salesof ultra-high-strength polyester filament yarns decreased substantially for building and civil engineering applications
due to the postponement and suspension of projects, etc.
Consequently, the Performance Materials segment reported a fall in net sales and a rise in operating profit. Specifically,
the segment posted operating profit of 792 million yen (versus an operating profit of 4 million yen in the previousyear) on net sales of 29,628 million yen (down 8.4% year on year).
[Fibers and Textiles Segment]
In the Garments, Lifestyle Materials and Bedding business, sales for medical gown and infection protective clothing
applications grew sharply due to the spread of the COVID-19 pandemic. On the other hand, sales in the uniform sector,a mainstay of this business, in general, remained very weak since demand was sluggish mainly for the service andoffice-related sectors as well as the women’s and sport clothing sectors.
Consequently, the Fibers & Textiles segment reported a fall in net sales and operating profit. Specifically, the segment
posted an operating loss of 368 million yen (versus an operating profit of 8 million yen in the previous year) on net
sales of 39,278 million yen (down 5.0% year on year).

[Others]
The Others category posted an operating loss of 78 million yen (versus an operating loss of 289 million yen in theprevious year) on net sales of 31 million yen (down 77.1% year on year).
(2) Overview of financial position
Total assets decreased by 3,322 million yen from the end of the previous consolidated year to 190,403 million yen
mainly due to a decrease in inventories and property, plant and equipment despite an increase in cash and deposits
from the receipt of insurance claims related to the fire incident at the Uji Plant. Liabilities fell by 5,581 million yen
from the end of the previous consolidated year to 149,211 million yen. This was primarily due to a decline in notes
and accounts payable-trade and long-term borrowings and the reversal of provision for loss on litigation. Net assets
increased by 2,258 million yen from the end of the previous consolidated year to 41,192 million yen. This was mainly
due to a rise in retained earnings caused by the posting of profit attributable to owners of parent.
(3) Overview of cash-flow
Cash and cash equivalents (hereinafter referred to as “net cash”) as of March 31, 2021 increased by 4,399 million yen
to 22,593 million yen.
(Net cash provided by [used in] operating activities)
Net cash provided by operating activities amounted to 14,869 million yen during the current consolidated fiscal
year (up 51.8% year on year) mainly due to a decrease in inventories and the receipt of insurance claims related to
the fire incident at the Uji Plant despite a decline in trade payables and damage payments in the litigation over thesale of land for industrial use.
(Net cash provided by [used in] investing activities)
Net cash used in investing activities amounted to 6,171 million yen during the current consolidated fiscal year-3-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2021

(10,192 million yen used in 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 4,141 million yen during the current consolidated fiscal year
(3,482 million yen used in the previous consolidated fiscal year) due to the repayments of borrowings.
(Reference) Changes in cash flow-related indicators

Year ended
March 31, 2021(i)

Shareholders’ equity ratio (%)(ii) Shareholders’ equity ratio on
market value basis (%)(iii) Ratio of interest-bearing debt tocash flow(iv) Interest coverage ratio

Year ended
March 31, 2020

Year ended
March 31, 2019

20.7

18.3

19.0

12.4

8.0

12.3

6.7

10.5

11.8

13.3

8.3

7.4

(Notes) Shareholders’ equity ratio: Shareholders’ equity/Total assets
Shareholders’ equity ratio on market value basis: Market capitalization/Total assets
Ratio of interest-bearing debt to cash flow: Interest-bearing debt/Cash flow
Interest coverage ratio: Cash flow/Interest expense*1. Each indicator is calculated based on consolidated financial results.
*2. Cash flow is net cash provided by operating activities.
*3. Interest-bearing debt includes all liabilities, reported on the consolidated balance sheet, on which interest is
paid.

(4) Future forecast
The Unitika Group will continue to implement G-STEP30, a long-term vision for the Group that lays out the desired
image of the Group around 2030, and G-STEP30, the 1st, a new three-year medium-term management plan, underwhich the Group aims to realize the building of strong business portfolios, promotion of global business development,
and a change in business culture and mind-set—the Group’s basic policies that place the strengthening of the foundation
for a growth phase as the highest priority.
While it is difficult for the Group to predict when the COVID-19 pandemic will be fully under control, it will steadily
implement the measures outlined in its medium-term management plan and expects to adequately cope with changes
in its business environment. Depending on how soon it will be contained, the Group’s financial condition andperformance may be significantly influenced by the pandemic. Under such situation, the Unitika Group forecasts that
it will post net sales of 111,000 million yen, operating profit of 6,100 million yen, ordinary profit of 4,700 million yen,and profit attributable to owners of parent of 4,000 million yen in the year ending March 31, 2022.

(5) Basic policy for profit distribution and dividends for the fiscal year ended March 31, 2021 and the fiscal year
ending March 31, 2022
The Unitika Group considers profit distribution to its shareholders to be an important aspect of its business, but
management intends to pass dividends on common stock for the fiscal year ended March 31, 2021, giving due
consideration to the business results and financial situation at the end of the fiscal year.
For the future, Unitika’s basic dividend policy is to conduct profit distribution to shareholders as appropriate to theCompany’s financial results. At the same time, the Company intends to decide dividend payment after considering theimprovement of financial position and enhancing of internal reserve for securing profit for shareholders from a longterm perspective.
Regarding dividends for the classified stock issued through third party allocations in July 2014, the Company plans toprovide the following dividends based on the classified stock issuance guidelines determined at the time of issuance:
12,000 yen per class A share and 23,740 yen per class B share.

2. Basic Approach to the Selection of Accounting Standards
The Unitika Group adopts Japanese Accounting Standards (Japanese GAAP), since the Group intends to ensure thecomparability of performance with competitors in Japan.

-4-Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2021

3. Consolidated Financial Statements and Major Notes to Consolidated Financial Statements(1) Consolidated balance sheets
Previous consolidated
fiscal year
(March 31, 2020)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Land
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Investments in capital
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-5-(Unit: Millions of yen)
Current consolidated
fiscal year
(March 31, 2021)

18,86030,95329,4982,961(48)
82,22523,37029,182
26,033
2,595(91)
81,08810,85821,543
1,127
65,191
233
6,492
105,447

10,492
20,1081,009
62,647146
8,607
103,010

1,756
1,756

1,991
1,991

2,645
8
405
29
223
1,067
(84)
4,296
111,500
193,726

2,498
7
271
27
219
1,353
(65)
4,312
109,314
190,403

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2021

Previous consolidated
fiscal year
(March 31, 2020)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of long-term borrowings
Lease obligations
Income taxes payable
Provision for bonuses
A product repair reserve fund
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for land revaluation
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-sale securities
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-6-(Unit: Millions of yen)

Current consolidated
fiscal year
(March 31, 2021)

14,922
2,288
2,675
363
284
1,710
42
8,949
31,237

13,606
2,130
2,664
153
923
1,770
40
10,056
31,346

94,631
162
7,824
3,579
2,566
14,333
458
123,554
154,792

92,002
224
7,884
3,169
—
14,324
258
117,864
149,211100
13,21821,559(56)
34,821

100
13,126
25,695(57)
38,865

361
(11)
6,412
(3,521)(2,581)
660

480
16
6,313
(4,374)(1,823)611

3,451
38,933
193,726

1,715
41,192
190,403

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2021

(2) Consolidated income statement and consolidated comprehensive income statement(Consolidated income statement)(Unit: Millions of yen)

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
Foreign exchange gains
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
Syndicated loan origination fee
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Insurance claim income
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Impairment loss
Loss on disposal of non-current assets
Loss on tax purpose reduction entry of non-current assets
Business restructuring expenses
Loss on litigation
Provision for loss on litigation
Other
Total extraordinary losses
Profit (loss) before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent-7-

Previous consolidated
fiscal year
(April 1, 2019 toMarch 31, 2020)
119,537
92,15627,38021,913
5,467

Current consolidated
fiscal year
(April 1, 2020 toMarch 31, 2021)
110,375
83,22027,154
21,136
6,018

76
83
13
—
121
—
230
525

36
76
—
139
81
357
294
985

1,174
—
308
869
486
2,839
3,153

1,167
0
—
—
453
1,622
5,381

83
0
—
84

198
734
3,676
4,610

—
1,043
1,278
—
30
—
2,566
48
4,967
(1,728)
600
(129)
471
(2,200)(41)(2,158)

386
3,397
817
199
383
70
—
66
5,321
4,669
1,212
(411)
800
3,869
5
3,864

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2021

(Consolidated comprehensive income statement)

Profit (loss)
Other comprehensive income
Valuation difference on available-for-salesecurities
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

Previous consolidated
fiscal year
(April 1, 2019 toMarch 31, 2020)(2,200)-8-(Unit: Millions of yen)

Current consolidated
fiscal year
(April 1, 2020 toMarch 31, 2021)
3,869

(1)

118

66
74

30
(965)

(36)

757

102
(2,097)

(58)
3,811

(2,069)

3,914

(27)

(103)

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2021

(3) Consolidated statements of changes in net assets
Previous consolidated fiscal year (April 1, 2019 to March 31, 2020)(Unit: Millions of yen)

Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus
100

Retained earnings

13,218

Total shareholders’equityTreasury shares

24,040(56)

37,302

Changes in items during period
Dividends of surplus(Loss) attributable to owners of parent

(321)

(321)

(2,158)(2,158)Purchase of treasury shares
Disposal of treasury shares

(0)

(0)

(0)

0

0

Change in ownership interest of parent due
to transactions with non-controllinginterests
Reversal of revaluation reserve for land
Net changes in items other thanshareholders’ equity
Total changes in items during period—(0)(2,480)(0)(2,480)

Balance at end of period

100

13,21821,559(56)

34,821

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred
gains orlosses onhedges

Revaluation
reserve for
land

363

(69)

6,412

Total
NonForeign
Reaccumulated
controllingcurrency measurements
otherof definedinterests
translation
comprehenadjustment benefit plans
sive income(3,589)(2,545)

571

3,479

Total net
assets41,352

Changes in items during period
Dividends of surplus(321)(Loss) attributable to owners of parent(2,158)Purchase of treasury shares(0)

Disposal of treasury shares

0Change in ownership interest of parent due
to transactions with non-controllinginterests
Reversal of revaluation reserve for land
Net changes in items other thanshareholders’ equity

(1)

58

Total changes in items during period

(1)

58

Balance at end of period

361

(11)

-9-

68

(36)

88

(27)

61

—

68

(36)

88

(27)

(2,419)6,412(3,521)(2,581)

660

3,451

38,933

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2021

Current consolidated fiscal year (April 1, 2020 to March 31, 2021)(Unit: Millions of yen)

Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus
100

Retained earnings

13,218

Total shareholders’equityTreasury shares

21,559(56)

34,821

Changes in items during period
Dividends of surplus

(321)

(321)

Profit attributable to owners ofparent

3,864

3,864

Purchase of treasury shares

(0)

(0)

Disposal of treasury shares
Change in ownership interest ofparent due to transactions with noncontrolling interests

(91)

(91)

Reversal of revaluation reserve for
land

592

592

Net changes in items other thanshareholders’ equity
Total changes in items during
Period

—

(91)

4,135

(0)

4,043

Balance at end of period

100

13,126

25,695(57)

38,865

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive income

Noncontrollinginterests

Total net
assets

361

(11)

6,412

(3,521)(2,581)

660

3,451

38,933

Changes in items during period
Dividends of surplus(321)

Profit attributable to owners ofparent

3,864

Purchase of treasury shares(0)

Disposal of treasury shares
Change in ownership interest ofparent due to transactions with noncontrolling interests(91)

Reversal of revaluation reserve for
land

592

Net changes in items other thanshareholders’ equity

118

27

(98)

(853)

757

(48)

(1,736)(1,784)

Total changes in items during
Period

118

27

(98)

(853)

757

(48)

(1,736)2,258

Balance at end of period

480

16

6,313

(4,374)(1,823)

611

1,715

41,192- 10 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2021

(4) Consolidated statements of cash flow

(Unit: Millions of yen)Previous consolidated
fiscal year
(April 1, 2019 toMarch 31, 2020)
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment loss
Loss on tax purpose reduction entry of non-current assets
Business restructuring expenses
Loss on litigation
Provision for loss on litigation
Insurance claim income
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for product repair
Increase (decrease) in other provisions
Interest expenses
Loss (gain) on disposal of non-current assets
Loss (gain) on sales of non-current assets
Loss (gain) on sales 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
Proceeds from sales of investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for retirement of property, plant and equipment
Proceeds from sales of shares of subsidiaries resulting in change in scopeof 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
Payments from changes in ownership interests in subsidiaries that do not
result in change in scope of consolidation
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- 11 -

Current consolidated
fiscal year
(April 1, 2020 toMarch 31, 2021)(1,728)
5,333
1,043
—
30
—
2,566
—
33
1,120
(30)
57
1,174
1,278
(83)
(0)
4,314
97
(3,083)(725)
11,398159(1,178)(1,060)
478
—
9,797

4,669
4,990
3,397
199
383
70
—
(3,676)
25
766
(1)
64
1,167
817
188
(734)
1,622
3,355
(1,266)(1,214)
14,825114(1,118)(389)
4,075(2,636)
14,869

(205)
(10)
22
(9,170)
511
(966)

(110)
(11)
1,036
(6,708)
596
(589)

—

197

(372)
(10,192)(582)(6,171)(113)
97,126(99,993)
(321)

133
110
(2,667)(321)—(1,230)(181)(3,482)(51)(3,927)
22,122
18,194(165)(4,141)(156)
4,399
18,194
22,593

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2021

(5) Notes on consolidated financial statements(Notes on going concern assumption)
Not applicable.
(Significant items that are the basis for preparation of consolidated financial statements)
There are no significant changes in our latest securities report, except for Items related to the scope of consolidation
and Items related to the fiscal closing dates of consolidated subsidiaries stated below.
(Items related to the scope of consolidation)(1) Number of consolidated subsidiaries: 28 companies
Name of major consolidated subsidiaries:
NIPPON ESTER CO., LTD.
UNITIKA TRADING CO., LTD.
Changes in consolidated subsidiaries during the current consolidated accounting year are as follows: the numberof consolidated subsidiaries increased by one due to new establishment and decreased by one due to the transferof owned shares.
(2) Name of non-consolidated subsidiaries
Non-consolidated subsidiaries
Akoh Unitec Service Co., Ltd.
(Reasons the Company excludes such entities from the scope of consolidation)
Since the total assets, net sales, profit (loss) (corresponding to equity interest) and retained earnings(corresponding to equity interest) of non-consolidated subsidiaries are small and do not significantly influence theCompany’s consolidated financial statements, the Company excludes these entities from the scope of
consolidation.
(Items related to the fiscal closing dates of consolidated subsidiaries)
Twelve consolidated subsidiaries adopt fiscal closing dates different from the fiscal closing date for the consolidated
accounting, as follows:
December 31: P.T.EMBLEMASIA and ten other companies
February 28: UNITIKA (HONGKONG) LTD.
When preparing consolidated financial statements of the Company, the financial statements as of the fiscal closing
dates of these consolidated subsidiaries are used, and necessary adjustments are made for important transactions
occurring at these consolidated subsidiaries after their fiscal closing dates until the fiscal closing date for the
consolidated accounting.
(Additional information)(Litigation)
Concerning the lawsuit filed by citizens of Toyohashi City, Aichi Prefecture (the “City”), who claimed that Unitika’s
sale of land for industrial use to a third party was a breach of the land transfer contract—the land was transferred by
the City to the Company in 1951—and requested the mayor of the City to pursue damages against the Company (theCompany participated in the lawsuit as an assisting intervener), the judgment by the Nagoya High Court became final
due to the decision by the Supreme Court 3rd Petty Bench. In accordance with the judgment, the Company paid 2,609
million yen in damages and delinquency charges.

- 12 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2021

(Segment information, etc.)
Segment Information
1. Summary of reportable segment
Unitika’s reportable segments are components of the Company for which separate financial information isavailable. These segments are subject to regular reviews by the Board of Directors to decide the distribution ofmanagerial resources and evaluate business results.
The Company sets up divisions by product and service in its head office. Each division formulates comprehensive
domestic and overseas strategies for its products and services and conducts business activities according to thestrategies.
Unitika consists of segments by product and service based on divisions. The following three are its reportablesegments: Polymers, Performance Materials, and Fibers & Textiles.
The Polymers segment manufactures and markets films and resins. The Performance Materials segment makes
and sells glass fibers and so on. The Fibers & Textiles segment produces and distributes various types of fibers(threads, cotton, textiles, fabrics and the like).

2. Methods to calculate the amount of net sales, profit or loss, assets and other items by reportable segment
Methods of accounting treatment of reported business segments are almost the same as the descriptions in
Significant items that are the basis for preparation of consolidated financial statements.
Inter-segment earnings and transfers are based on prevailing market prices.

3. Information on the amount of net sales, profit or loss, assets and other items by reportable segment
Previous consolidated fiscal year (April 1, 2019 to March 31, 2020)
Reportable segment
Performance Fibers &Polymers
Materials
Textiles

Total

Other
(Note 1)

Total

(Unit: Millions of yen)Amountposted inConsoliAdjustment
dated(Note 2)
financialstatements(Note 3)

Net sales
Net sales to outside
45,70532,33841,354
119,399
137
119,537—
119,537
customers
Inter-segment sales or
7,670
4,357
317
12,34618
12,364(12,364)—transfer
Total
53,376
36,696
41,672
131,745
156
131,901(12,364)
119,537
Segment income (loss)
5,720
4
8
5,733
(289)
5,444
23
5,467
Segment assets
84,081
63,91730,514
178,512
1,041
179,554
14,171
193,726
Other items
Depreciation and
2,751
1,628
249
4,629
3
4,633
700
5,333
amortization
Increase in property, plantand equipment and
6,207
1,833
243
8,283
24
8,308
1,398
9,707
intangible assets(Note) 1. The Other segment includes business segments that are not included in reportable segments.
2. Adjustment details are as follows.
(1) Adjustment of (23) million yen for Segment income (loss) is attributable to the elimination of inter-segment transactions.
(2) Adjustment of 14,171 million yen for Segment assets includes investment of surplus funds (cash and deposits) by the parent
company, long-term investment funds (investment securities) and assets, etc. related to the Administration and the Researchand Development Division of the parent company.
(3) Adjustment of 700 million yen for Depreciation and amortization is depreciation and amortization of common assets thatare not allocated to each reportable segment.
(4) Adjustment of 1,398 million yen for Increase in property, plant and equipment and intangible assets is an increase incommon assets that are not allocated to each reportable segment.
3. Segment income (loss) is adjusted with operating profit in the consolidated income statement.

- 13 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2021

Current consolidated fiscal year (April 1, 2020 to March 31, 2021)
Reportable segment
Performance Fibers &Polymers
TextilesMaterials

Total

Other
(Note 1)

Total

(Unit: Millions of yen)Amountposted inConsoliAdjustment
dated(Note 2)
financialstatements(Note 3)

Net sales
Net sales to outside
41,436
29,62839,278110,34331
110,375—
110,375
customers
Inter-segment sales or
7,256
4,578
307
12,142—
12,142(12,142)—transfer
Total
48,69334,20739,586
122,48631
122,518(12,142)
110,375
Segment income (loss)
5,682
792
(368)
6,105
(78)
6,027
(9)
6,018
Segment assets
81,71063,62324,608
169,942
1,239
171,181
19,221
190,403
Other items
Depreciation and
2,644
1,512
240
4,398
2
4,400
589
4,990
amortization
Increase in property, plantand equipment and
3,611
2,580
206
6,399
5
6,404
1,700
8,104
intangible assets(Note) 1. The Other segment includes business segments that are not included in reportable segments.
2. Adjustment details are as follows.
(1) Adjustment of (9) million yen for Segment income (loss) is attributable to the elimination of inter-segment transactions.
(2) Adjustment of 19,221 million yen for Segment assets includes investment of surplus funds (cash and deposits) by the parent
company, long-term investment funds (investment securities) and assets, etc. related to the Administration and the Researchand Development Division of the parent company.
(3) Adjustment of 589 million yen for Depreciation and amortization is depreciation and amortization of common assets thatare not allocated to each reportable segment.
(4) Adjustment of 1,700 million yen for Increase in property, plant and equipment and intangible assets is an increase incommon assets that are not allocated to each reportable segment.
3. Segment income (loss) is adjusted with operating profit in consolidated income statement.

4. Matters concerning the revision of reportable segments
From the current fiscal year, the Company has changed its organizational management system and has reviewed
the Group’s management classification to promote its new medium-term management plan. Accordingly, it haschanged its reportable segment classification from the Polymers segment, the Advanced Materials segment, andthe Fibers & Textiles segment to the Polymers segment, the Performance Materials segment, and the Fibers &Textiles segment.
For your information, segment information for the previous fiscal year ended March 31, 2020 (April 1, 2019 toMarch 31, 2020) was prepared in accordance with the new reportable segment classification.

- 14 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2021

(Per share information)
Previous consolidated fiscal year
(April 1, 2019 to March 31, 2020)

Current consolidated fiscal year
(April 1, 2020 to March 31, 2021)

Net assets per share

188.37 yen

257.67 yen

Profit (loss) per share(43.01) yen

61.44 yen—30.85 yen

Profit per share after full
dilution(Notes) 1. The Company did not present profit per share after full dilution for the previous consolidated fiscal year, since it posted loss
per share, although there are potential common shares with dilutive effects.
2. The basis for the calculation of net assets per share is as follows:

Previous consolidated
fiscal year
(March 31, 2020)

Current consolidated
fiscal year
(March 31, 2021)

Total net assets (millions of yen)

38,933

41,192

Amounts deducted from the total net assets (millions of yen)

28,072

26,336[of which amounts to be paid in for shares of class stock(millions of yen)][24,299][24,299]

[321]

[321]

[3,451][1,715][of which preferred dividends (millions of yen)][of which non-controlling interests (millions of yen)]

Net assets at the end of the fiscal year attributable to common
10,861
14,856stock (millions of yen)
Number of common stock at the end of the fiscal year used
57,65857,657for calculating net assets per share (thousand shares)
3. The basis for the calculation of profit or loss per share and profit per share after full dilution is as follows:
Previous consolidated
Current consolidated
fiscal year
fiscal year
(April 1, 2019 to(April 1, 2020 toMarch 31, 2020)
March 31, 2021)
Profit (loss) per share
Profit (loss) attributable to owners of parent(2,158)
3,864(millions of yen)Amount not attributable to common stockholders
321
321(millions of yen)[of which preferred dividends (millions of yen)]

[321]

[321]

(2,480)3,542

57,65857,657—321[of which preferred dividends (millions of yen)]

—

[321]

Increased number of common stock (thousand shares)—

67,622[of which preferred shares (thousand shares)]—[67,622]

Profit (loss) attributable to common stock owners of parent(millions of yen)
Average number of common stock during the fiscal year
(thousand shares)
Profit per share after full dilution
Net diluted profit attributable to owners of parent (millionsof yen)Outline of potential common shares that were not includedin the calculation of profit per share after full dilution due totheir anti-dilutive effect(Material subsequent events)
Not applicable.

- 15 -——

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2021

4. Supplementary Materials
4. Supplemental Materials(1) Results (consolidated)
OperatingprofitNet sales
Consolidated

FY ended March 2020

Full year
Q2
Full year
Q2 (Forecast)
Full year (Forecast)
Q2 (Forecast)
Full year (Forecast)

FY ended March 2021
FY ending March 2022
Comparison with prioryear

119,537
54,828110,375
53,000111,000(1,828)625(Millions of yen)
Profit attributableto owners ofparent(2,158)
3,731
3,864
1,000
4,000
(2,731)
136

Ordinary
profit

5,467
2,798
6,018
2,500
6,100
(298)
82

3,153
1,610
5,381
1,800
4,700
190
(681)

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

Net sales to outside
customers
Results for
FY ended
Component ratio (%)
previous fiscal
March 2020
year
Operating profit
Component ratio (%)
Net sales to outside
customers
Results for
FY ended
Component ratio (%)
current fiscal
March 2021
year
Operating profit
Component ratio (%)
Net sales to outside
customers
Increase/decrease
from previous year
Comparison with previous(%)
year
Operating profit
Increase/decrease
from previous year(%)
Net sales to outside
customers(Forecast) Component ratio (%)
Operating profit
FY endingComponent ratio (%)
March 2022
Net sales to outside(Forecast)customers
Comparison Component ratio (%)
Operating profit
Component ratio (%)

Elimination
Consolidatedor
total
corporate

Polymers

Performance
Materials

Fibers &Textiles

45,70532,33841,354

137—

119,537

38.2
5,720
104.6

27.1
4
0.1

34.6
8
0.1

0.1
(289)
(5.3)

—
23
0.4

100.0
5,467
100.0

41,436

29,62839,27831—

110,375

37.5
5,682
94.4

26.8
792
13.2

35.6
(368)
(6.1)

0.0
(78)
(1.3)

—
(9)
(0.1)

100.0
6,018
100.0

(4,269)(2,710)(2,076)(106)—(9,162)

(9.3)

(8.4)

(5.0)

(77.1)

—

(7.7)

(38)

787

(377)

211

(32)

551

(0.7)

—

—

—

—

10.1

46,00032,50032,5000—

111,000

41.4
6,000
98.4

29.3
300
4.9

29.3
(200)
(3.3)

0.0
0
0.0

—
—
—

100.0
6,100
100.0

4,564

2,872

(6,778)

(31)

—

625

11.0
318
5.6

9.7
(492)
(62.1)(17.3)
168—(100.0)
78
—

—
—
—

0.6
82
1.3

Other

(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)Depreciation(Property,
plant andequipment)
6,074
4,481
9,316
4,765
7,387
4,517

Capitalexpenditures

FY ended March 2019 Full year
FY ended March 2020 Full year
FY ended March 2021 Full year

Interestbearing
liabilities (endof fiscal year)
3,474
102,603
3,624
99,595
3,639
96,798

R&D
expenditures(4) Cash flow (consolidated)

FY ended March 2019 Full year
FY ended March 2020 Full year
FY ended March 2021 Full year

Cash flow fromoperating activities
8,985
9,797
14,869Cash flow frominvesting activities(6,440)(10,192)(6,171)- 16 -

Financialaccountbalance(1,066)(1,014)(1,054)

Number ofpermanent
employees(persons)
3,497
3,438
3,007

(Millions of yen)

Cash flow from
Cash and cash equivalents
financing activities
at end of fiscal year
(6,519)22,122(3,482)
18,194(4,141)
22,593