Member of Financial Accounting Standards Foundation

Financial Results for the 3rd Quarter of the Fiscal Year Ending March 31, 2018
February 7, 2018
Listed stock exchanges: Tokyo Stock Exchange
Company name: Unitika Ltd.
Code number: 3103
URL: http://www.unitika.co.jp/e/home.htm
Representative: Hiroyuki Shime, President and Chief Executive Officer
Contact: Masanori Onishi, General Manager of Accounting Department
TEL: +81-6-6281-5721
Expected submission of quarterly report: February 13, 2018
Expected commencement date for paying dividend: –Preparation of supplementary explanation documents for quarterly financial results: No
Holding of an analyst meeting for quarterly financial results: No(Figures rounded down to nearest million yen.)
1. Consolidated performance for 3rd quarter of fiscal year ending March 31, 2018 (April 1, 2017 to December 31, 2017)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales

Millions of yen

Q3 of FY ending March 31, 2018
Q3 of FY ended March 31, 2017

(Note) Comprehensive income

Operating income%
3.3(13.7)

95,234
92,187

Ordinary income

%
(4.5)
30.8

Millions of yen

8,803
9,220

%
(3.9)
63.8

Millions of yen

8,057
8,387

Quarterly net income
attributable to owners ofparentMillions of yen

6,960
6,285

%
10.7
2.0

Q3 of FY ending March 31, 2018: 6,964 million yen [33.4%]
Q3 of FY ended March 31, 2017: 5,219 million yen [-14.3%]
Quarterly net income per share

Diluted quarterly net income per share

Yen
Yen
Q3 of FY ending March 31, 2018115.5076.12
Q3 of FY ended March 31, 2017
95.95
48.62
(Note) The Company implemented a 1-for-10 share consolidation effective as of October 1, 2017 by consolidating 10 common shares of the Company
into one common share. Quarterly net income per share and Diluted quarterly net income per share were calculated on the assumption that therelevant share consolidation had been implemented at the beginning of the previous consolidated fiscal year.

(2) Consolidated financial situation

Q3 of FY ending March 31, 2018
FY ended March 31, 2017

(Reference) Shareholders’ equity

Total assets

Net assets

Millions of yen
200,857
211,872

Millions of yen
39,27745,264

Capital adequacy ratio
%
17.9
19.7

3rd quarter of fiscal year ending March 31, 2018: 35,871 million yen
Fiscal year ended March 31, 2017: 41,841 million yen

2. Dividend payment
Dividends per share
End of Q1

End of Q2Yen

FY ended March 31, 2017
FY ending March 31, 2018

End of Q3
Yen
0.00



0.00



Year end
Yen

FY ending March 31, 2018 (forecast)

Total
Yen
0.00

Yen
0.00

0.00

0.00

(Note) Revision of the latest dividend forecast: None
The above 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.

3. Forecast of consolidated performance for fiscal year ending March 31, 2018 (April 1, 2017 to March 31, 2018)(% figures represent changes from same period in previous year.)Net sales

FY ending March 31, 2018

Operating income

Millions of yen%

131,000

3.8

Profit attributable toowners of parent

Ordinary income

Net income per
share

%

Millions of yen%

Millions of yen%

Yen

11,000 (12.3)

9,800

(6.5)

7,500

1.5

123.16

Millions of yen(Note) Revision of the latest forecasts of operational results: None
The forecast for net income per share for the fiscal year ending March 31, 2018 (full year) is the value after reflecting the impact of the shareconsolidation.

Member of Financial Accounting Standards Foundation* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying change of scope of
consolidation): No
New companies: ― (company name)
Excluded companies: ― (company name)(2) Adoption of special accounting methods for preparing quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
 Changes in accounting policies due to revisions of accounting standards: No Changes of accounting policies other than the above: No Changes in accounting estimates: No
 Retrospective restatement: No(4) Number of shares outstanding (Common stock) Number of shares outstanding at end of term (including treasury stock):3rd quarter of the fiscal year ending March 31, 2018: 57,752,343 sharesFiscal year ended March 31, 2017: 57,752,343 shares Number of treasury stocks at end of term
3rd quarter of the fiscal year ending March 31, 2018: 86,461 sharesFiscal year ended March 31, 2017: 81,796 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
3rd quarter of the fiscal year ending March 31, 2018: 57,669,782 shares
3rd quarter of the fiscal year ended March 31, 2017: 57,671,494 shares(Note) The Company implemented a 1-for-10 share consolidation effective as of October 1, 2017 by consolidating 10 common shares of theCompany into one common share. The number of shares outstanding at end of the term, the number of shares of treasury stock at theend of the term, and the average number of shares outstanding during the term were calculated on the assumption that the relevant
share consolidation had been implemented at the beginning of the previous consolidated fiscal year.

* The quarterly reports of financial results are not subject to quarterly review procedures.
* 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 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. Qualitative Information on Quarterly Results (3) Explanation of future forecast information
including forecast of consolidated performance on page 3 of the attachment.

Member of Financial Accounting Standards Foundation

Dividend payment to the holders of class shares
The breakdown of dividends per share related to class shares, the rights of which are different from those of common stock, is asfollows:
Annual dividends
End of Q1
Class A share

End of Q2

Yen

End of Q3

Yen

Yen

FY ended March 31, 2017

—

0.00

—

FY ending March 31, 2018

—

0.00

—

FY ending March 31, 2018 (forecast)Class B share

Yen

Yen

—

0.00

—

FY ending March 31, 2018

—

0.00

—

FY ending March 31, 2018 (forecast)
Yen

Yen

FY ended March 31, 2017——

FY ending March 31, 2018——

FY ending March 31, 2018 (forecast)

Total

Yen

Yen

12,000.00

12,000.00

12,000.00

12,000.00

Yen

FY ended March 31, 2017Class C share

Year end

Yen

Yen

23,740.00

23,740.00

23,740.00

23,740.00

Yen

Yen

Yen

—

60,000.00

60,000.00———(Note) The Company acquired and retired all outstanding Class C shares as of June 30, 2017. Accordingly, there will be no
dividend payment for Class C shares from the fiscal year ending March 31, 2018.

Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2018

 Table of contents for the attachment
1. Qualitative Information on Quarterly Results ...........................................................................................2(1) Explanation of operational results........................................................................................................2(2) Explanation of financial situation ........................................................................................................3(3) Explanation of future forecast information including forecast of consolidated performance ..............3
2. Quarterly Consolidated Financial Statements
and Major Notes to Consolidated Financial Statements ............................................................................4(1) Consolidated quarterly balance sheets .................................................................................................4(2) Consolidated quarterly statements of income andconsolidated quarterly statements of comprehensive income ..............................................................6
Consolidated quarterly statements of income
Nine-month period ended December 31, 2017 ................................................................................. 6
Consolidated quarterly statements of comprehensive income
Nine-month period ended December 31, 2017 ................................................................................. 7(3) Notes on quarterly consolidated financial statements ..........................................................................8(Notes on going concern assumption) ..................................................................................................8(Notes on significant changes in shareholders’ equity) ........................................................................8(Segment information) ..........................................................................................................................8-1-

Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2018

1. Qualitative Information on Quarterly Results(1) Explanation of operational results
During the first nine-month period of the consolidated accounting year under review, the Japanese economy
continued to recover gradually, supported by a pickup in consumer spending and capital expenditures against
the backdrop of an improvement in corporate earnings and the employment environment. Meanwhile, theglobal economy, centered on the United States, was on the path to gradual recovery. However, the economic
outlook continued to be unclear due to concerns about policy developments in Europe and the United States,
growing geopolitical risk, and the impact of fluctuations in resource prices.
Under these circumstances, the Unitika Group endeavored to realize the three Gs (Growth, Global, andGovernance) promoted under the “G” round 20—to The Next Stage, its medium-term management planannounced in May 2017. Consequently, the Group reported net sales of 95,234 million yen (up 3.3% year onyear), operating income of 8,803 million yen (down 4.5% year on year), ordinary income of 8,057 million
yen (down 3.9% year on year) and profit attributable to owners of parent of 6,960 million yen (up 10.7%
year on year) in the first nine-month period of the consolidated accounting year under review.
Here is an overview of the business results by segment.
[Polymers]
In the Films business, sales in the packaging sector continued to grow from the previous fiscal year,
supported by steady demand for winter goods in Japan. In overseas markets, P.T. EMBLEM ASIA, asubsidiary in Indonesia, performed well due to an increase in exports. In the industrial sector, demand wassteady for information terminal applications, and sales of high value-added products such as Uni-peel, asilicon-free mold release PET film, remained robust.
In the Resin business, sales of elitel, a thermoplastic saturated copolymeric polyester resin, and
ARROWBASE, a range of environmentally friendly water-based polyolefin cationic emulsions, were sluggish
due to weak demand for solar cell applications. However, the sales volume of U-Polymer, the Company’s
original polyarylate resin, expanded greatly for information terminal applications and overseas automobile
applications. Sales of nylon resins also grew steadily for automobile applications.
In the Non-woven Fabrics business, sales of polyester spunbond fabrics grew steadily for agricultural andindustrial applications such as building materials, but remained weak for civil engineering andinterior-related product applications. THAI UNITIKA SPUNBOND CO., LTD. (TUSCO), a subsidiary inThailand, saw sales of existing products increase steadily, since it consistently encouraged customers to
adopt products manufactured by its new machine at the stage of design. Sales of cotton spunlace continued
to be strong for daily product applications, such as skin care goods.
The Polymers business saw profit decrease from the previous year due to a rise in costs, such as raw material
and fuel prices.
Consequently, the Polymers business posted operating income of 7,262 million yen (down 7.7% year onyear) on net sales of 43,672 million yen (up 7.0% year on year).
[Advanced Materials]
In the Glass Fibers business, the industrial materials sector saw sales of products for building and civilengineering applications remain weak, but sales for environment-related applications grew steadily. In theelectronic materials sector, sales of IC cloth increased, supported by robust demand for information terminal
applications.
In the Glass Beads business, sales for automobile applications and electronic component applications
continued growing steadily, but a rise in raw material and fuel prices affected profitability.
In the Activated Carbon Fibers business, sales for industrial filter applications remained strong and sales forwater purifier (including faucet built-in water purifiers) and VOC removal applications continued growing
robustly.
Consequently, the Advanced Materials business posted operating income of 935 million yen (up 14.3% year
on year) on net sales of 9,367 million yen (up 6.1% year on year).
[Fibers and Textiles]
In the Industrial Materials business, the size of the business became smaller due to the implementation of
structural reform. However, the short-fiber polyester business maintained its sales at the same level as theprevious fiscal year, since it expanded sales of high value-added products, such as composite fibers. In theultra-high-strength polyester filament yarn business, demand for building material applications did notrecover, but profit was in line with the Company’s initial plan due to its efforts to focus on sales of highvalue-added products.
In the Garments, Lifestyle Materials and Bedding business, sales in the uniform sector continued to be
steady, supported by demand from corporate customers. Sales in the women’s clothing sector remained weak,since demand did not pick up. Overseas sales were strong due to the increase in sales volume of denim.
Consequently, the Fibers and Textiles business posted operating income of 836 million yen (down 16.8%-2-

Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2018

year on year) on net sales of 39,270 million yen (down 1.5% year on year).
[Others]
The Others category posted an operating loss of 244 million yen (compared to an operating loss of 483
million yen the previous year) on net sales of 2,924 million yen (up 9.9% year on year).
(2) Explanation of financial situation
Total assets decreased by 11,015 million yen from the end of the previous consolidated year to 200,857
million yen, mainly due to a decline in cash and deposits. Liabilities fell by 5,028 million yen from the endof the previous consolidated year to 161,580 million yen, mainly due to a decrease in long-term loans
payable. Net assets declined by 5,987 million yen from the end of the previous consolidated year to 39,277
million yen. This was mainly due to a fall in capital surplus caused by the purchase and retirement of Class C
shares.
(3) Explanation of future forecast information including forecast of consolidated performance
The Unitika Group did not revise its full-year forecast of consolidated performance for the fiscal year ending
March 31, 2018 announced on November 9, 2017.

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Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2018

2. Quarterly Consolidated Financial Statements and Major Notes to Consolidated Financial Statements(1) Consolidated quarterly balance sheets(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2017)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Machinery, equipment and vehicles, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-Q3 of FY ending March 2018
(December 31, 2017)37,03034,11625,704
4,833(89)
101,595

23,85035,822
27,774
3,631(95)
90,985

21,39366,496
15,901
103,791

23,363
66,25013,622103,236

2,035
2,035

2,138
2,138

4,477
(26)
4,450
110,277
211,872

4,517
(20)
4,496
109,872
200,857

Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2018

(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2017)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
A product repair reserve fund
Provision for business structure improvement
Provision for loss on anti-monopoly act
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for directors’ retirement benefits
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-5-

Q3 of FY ending March 2018
(December 31, 2017)

17,506
3,438
2,756
1,167
1,451
1,670
152
980
9,071
38,194

17,834
2,465
2,720
413
840
980
29
—
9,092
34,376103,132
4
11,20914,067
128,414
166,608

100,745
4
11,791
14,661
127,204
161,580100
28,40012,117(47)
40,572100
16,451
18,080(51)
34,581

480

551

8
6,415
(2,856)(2,779)1,269
3,422
45,264
211,872

3
6,415(3,157)(2,522)
1,290
3,405
39,277200,857

Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2018

(2) Consolidated quarterly statements of income and consolidated quarterly statements of comprehensive
income(Consolidated quarterly statements of income)(Nine-month period ended December 31, 2017)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Business structure improvement expenses
Provision for loss on anti-monopoly act
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to non-controlling interests

Nine-month period
ended December 31, 2016
(April 1, 2016 to
December 31, 2016)
92,187
68,523
23,664
14,443
9,220(Unit: Millions of yen)
Nine-month period
ended December 31, 2017
(April 1, 2017 to
December 31, 2017)
95,23471,31823,91615,112
8,803

52
74
369

47
72
249

17

—

638
1,153

469
838

1,501

1,021

—

31

484
1,985
8,387

530
1,584
8,057

196
196

759
759

432
231
609
20
1,293
7,291
964
(38)
926
6,365

265
73
—
1
340
8,476
755
715
1,470
7,005

80
6,285

45
6,960

Profit attributable to owners of parent-6-Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2018

(Consolidated quarterly statements of comprehensive income)(Nine-month period ended December 31, 2017)

ProfitNine-month period ended
December 31, 2016
(April 1, 2016 to
December 31, 2016)
6,365(Unit: Millions of yen)
Nine-month period ended
December 31, 2017
(April 1, 2017 to
December 31, 2017)
7,005

197
160
(41)
(1,741)

70
(5)
—
(363)

279

256

(1,145)

(41)

5,219

6,964

5,355

6,981

(135)

(17)

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,
net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests-7-

Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2018

(3) Notes on quarterly consolidated financial statements(Notes on going concern assumption)
Not applicable(Notes on significant changes in shareholders’ equity)
UNITIKA LTD. resolved at the meeting of the Board of Directors held on March 21, 2017 to acquire all
outstanding Class C shares (worth 10,000 million yen) in exchange for cash payment in accordance withthe provision of Article 13-4, Item 6 of the Articles of Incorporation of the Company (Call Options, theConsideration for Which Is Money) and to retire all outstanding Class C shares in accordance with theprovision of Article 178 of the Companies Act subject to the said acquisition. The Company acquired
and retired all outstanding Class C shares as of June 30, 2017.
(1) Details of acquisition of Class C shares(i) Class of shares to be acquired: Class C shares(ii) Counterparty in the transaction (shareholder): Japan Industrial Solutions Fund I(iii) Total number of shares to be acquired: 10,000 shares(iv) Share acquisition value: 1,194,958.9 yen per share(Note) The above share acquisition value is calculated by adding the unpaid preferred dividend ona per diem basis (14,958.9 yen) to the amount obtained by multiplying the amountequivalent to the amount to be paid in per Class C share (1,000,000 yen) by 1.18.
(v) Total share acquisition value: 11,949,589,000 yen(vi) Acquisition date: June 30, 2017
(2) Details of retirement of Class C shares(i) Class of shares to be retired: Class C shares(ii) Total number of shares to be retired: 10,000 shares(iii) Effective date of retirement: June 30, 2017(3) Impact of the retirement on net assets
Capital surplus to be decreased: 11,949,589,000 yen(Segment information)[Segment Information]
I. Nine-month period ended December 31, 2016 (April 1, 2016 to December 31, 2017)
1. Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment
Polymers

Advanced Fibers &Materials Textiles

Total

Other
(Note 1)

Total

Figure in quarterly
consolidated
Adjustment
statements of(Note 2)income(Note 3)

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

40,829
6,579

8,832
682

39,866708

89,527
7,970

2,659
860

92,187
8,830—(8,830)92,187—

Total

47,408

9,515

40,574

97,4973,520 101,018(8,830)92,187

Segment income (loss)
7,867
818
1,005
9,691
(483)
9,207
13
9,220
(Notes) 1. The Other segment includes business segments that are not included in the reporting segments, such as the design,
construction, and maintenance businesses of plant projects.
2. Adjustment of Segment income (loss) is attributable to the elimination of inter-segment transactions.
3. Segment income (loss) is adjusted with operating income in quarterly consolidated statements of income.

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Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2018

II. Nine-month period ended December 31, 2017 (April 1, 2017 to December 31, 2017)
1. Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment
Polymers

Advanced Fibers &Materials Textiles

Total

Other
(Note 1)

Total

Adjustment(Note 2)

Figure in quarterly
consolidated
statements ofincome(Note 3)

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

43,672
7,096

9,367
691

39,270605

92,310
8,393

2,924
883

95,2349,276—(9,276)

95,234—

Total

50,76910,05839,875

100,7033,807 104,511(9,276)

95,234

Segment income (loss)
7,262
935
836
9,033
(244)
8,789
13
8,803
(Notes) 1. The Other segment includes business segments that are not included in the reporting segments, such as the design,
construction, and maintenance businesses of plant projects.
2. Adjustment of Segment income (loss) is attributable to the elimination of inter-segment transactions.
3. Segment income (loss) is adjusted with operating income in consolidated statements of income.

-9-