Member of Financial Accounting Standards Foundation

Financial Results for the 1st Quarter of the Fiscal Year Ending March 31, 2024
August 7, 2023
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: August 10, 2023
Expected commencement date for paying dividend: –Preparation of supplementary explanation documents for quarterly financial results: None
Holding of an analyst meeting for quarterly financial results: None
(Figures rounded down to nearest million yen.)
1. Consolidated performance for 1st quarter of fiscal year ending March 31, 2024 (April 1, 2023 to June 30, 2023)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales

Operating profit

Quarterly profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Q1 of FY ending March 31, 2024

27,940

(5.6)

(676)



762

(72.8)

237(88.4)

Q1 of FY ended March 31, 2023

29,5995.5

987(53.2)

2,806

57.5

2,040

62.0

(Note) Comprehensive income

Q1 of FY ending March 31, 2024: (956 million yen) [%]Q1 of FY ended March 31, 2023: 1,410 million yen [(39.2%)]

Quarterly profit per share

Diluted quarterly profit per share

Q1 of FY ending March 31, 2024

Yen
2.90

Yen
1.94

Q1 of FY ended March 31, 2023

34.09

16.36

(2) Consolidated financial situation
Total assets
Q1 of FY ending March 31, 2024

Net assets

Millions of yen
190,853

Millions of yen
42,678%21.5

190,003

43,91822.2

FY ended March 31, 2023

(Reference) Shareholders’ equity

Capital adequacy ratio

1st quarter of fiscal year ending March 31, 2024: 41,023 million yen
Fiscal year ended March 31, 2023: 42,110 million yen

2. Dividend payment
Annual dividend per share
End of Q1

End of Q2Yen

FY ended March 31, 2023

FY ending March 31, 2024

FY ending March 31, 2024 (forecast)End of Q3

Year end

Total

Yen
0.00

Yen


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 holdersof 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, 2024 (April 1, 2023 to March 31, 2024)(Percentages represent changes from same period in previous year.)Net sales

1st half of FY ending March
31, 2024 (cumulative)
FY ending March 31, 2024

Operating profit

Profit attributable toowners of parent

Ordinary profit

Profit per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

57,000(3.6)(1,200)



(900)



(1,400)(26.74)125,000

6.0

1,300

(2.1)

800

(25.2)

100(2.7)(3.18)(Note) Revision of the latest forecasts of operational results: Yes

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: None
(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
 Changes in accounting policies due to revisions of accounting standards: No Changes in accounting policies other than the above: No Changes in accounting estimates: No
 Retrospective restatement: No(4) Number of shares outstanding (Common stock) Number of shares outstanding at end of term (including treasury stock):
1st quarter of the fiscal year ending March 31, 2024: 57,752,343 sharesFiscal year ended March 31, 2023: 57,752,343 shares Number of treasury shares at end of term
1st quarter of the fiscal year ending March 31, 2024: 96,588 sharesFiscal year ended March 31, 2023: 96,504 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
1st quarter of the fiscal year ending March 31, 2024: 57,655,746 shares
1st quarter of the fiscal year ended March 31, 2023: 57,656,564 shares* This brief report of quarterly financial statements is not subject to audit procedures by a certified public accountant or an independent
auditor.
* Explanation on appropriate use of forecasts of performance and other special items
The forward-looking statements in this document concerning forecasting of performance etc. are based on currently available information andassumptions considered by the Company to be reasonable. Such statements are neither promises nor guarantees of future performance. The actual
performance may be significantly different from forecasts due to various factors. Concerning assumptions used as a basis for forecasting businessperformance and precautionary statements when using the forecast of performance, please refer to 1. Qualitative Information on Quarterly Results(3) Explanation of future forecast information including forecast of consolidated performance on page 3 of the attachment.

Member of Financial Accounting Standards Foundation

Dividend payment to the holders of class shares
The breakdown of dividends per share related to class shares, the rights of which are different from those of common stock, is asfollows:
Annual dividends
End of Q1
Class A share
FY ended March 31, 2023
FY ending March 31, 2024

Yen
—
—

FY ending March 31, 2024 (forecast)Class B share
FY ended March 31, 2023
FY ending March 31, 2024
FY ending March 31, 2024 (forecast)

Yen
—
—

End of Q2

End of Q3

Yen
0.00

Yen
—

0.00

—
Yen

Year end

Total

Yen
12,000.00

Yen
12,000.00

12,000.00

12,000.00
Yen
23,740.00
23,740.00

Yen
0.00

—

Yen
23,740.00

0.00—

23,740.00

Unitika Ltd. (3103)

Financial Results for 1st Quarter of Fiscal Year Ending March 31, 2024

 Table of contents for the attachment
1. Qualitative Information on Quarterly Results................................................................................................... 2(1) Explanation of operational results ................................................................................................................ 2(2) Explanation of financial position ................................................................................................................. 3(3) Explanation of future forecast information including forecast of consolidated performance ...................... 3
2. Quarterly Consolidated Financial Statements and Main Notes ........................................................................ 4(1) Quarterly consolidated balance sheets ......................................................................................................... 4(2) Quarterly consolidated statements of income and quarterly consolidated statements ofcomprehensive income ................................................................................................................................ 6
Quarterly consolidated statements of income
Three-month period ended June 30, 2023 .............................................................................................. 6
Quarterly consolidated statements of comprehensive income
Three-month period ended June 30, 2023 .............................................................................................. 7(3) Notes on quarterly consolidated financial statements .................................................................................. 8(Notes on assumption of going concern) ..................................................................................................... 8(Notes on a significant change in shareholders’ equity) .............................................................................. 8(Segment information, etc.) ......................................................................................................................... 8-1-

Unitika Ltd. (3103)

Financial Results for 1st Quarter of Fiscal Year Ending March 31, 2024

1. Qualitative Information on Quarterly Results(1) Explanation of operational results
During the first quarter of the consolidated fiscal year under review (April 1, 2023 to June 30, 2023), the domestic
economy, mainly the service industry, was on a recovery path, supported by a pickup in the number of inboundtourists to Japan and an increase in traffic of people. However, the business environment surrounding materials
industries continued to be harsh. This was because the number of cars manufactured gradually increased, but therebound still lacked momentum in the automobile sector, while production did not recover yet in the electric andelectronic sectors. In addition, there were negative factors for manufacturing business, such as a rise in production
cost owing to soaring energy prices and a further decline in the value of the yen and a decrease in demand caused
by a slowing global economy. Consequently, the outlook of the Japanese economy remained uncertain, althoughbusiness sentiment as a whole hit a bottom.
Under these circumstances, the Unitika Group announced “G-STEP30, 2nd,” a new medium-term management
plan, in May 2023 and implemented measures consisting of “Rebuilding a business portfolio,” “Promotion of the
global business,” and “Improvement of business foundation,” the basic policies of the new medium-term
management plan.
Meanwhile, in the first quarter of the consolidated fiscal year, the Unitika Group reported net sales of 27,940
million yen (down 5.6% year on year) owing to a fall in sales because of sluggish demand. The Group posted
operating loss of 676 million yen (versus an operating profit of 987 million yen in the previous year), since theimpact of a rise in production cost caused by skyrocketing energy prices and weaker yen as well as a decline in sales
greatly exceeded the effect of sales price revision and cost reduction efforts. Furthermore, as the Group posted aforeign-exchange valuation gain of assets denominated in foreign currencies due to a rise in the U.S. dollar against
the yen (the yen continuing a downward trend), ordinary profit decreased to 762 million yen (down 72.8% year onyear) and profit attributable to owners of parent fell to 237 million yen (down 88.4% year on year).
Here is an overview of the business results by segment.
The Unitika Group changed its reporting segment of some consolidated subsidiaries in the first quarter of thecurrent consolidated fiscal year. Therefore, the Group reported financial results for the corresponding year-earlier
period after being retrospectively restated based on the segment classification after the change for comparison
purposes. For details, please refer to 2. Quarterly Consolidated Financial Statements and Main Notes (3) Notes onquarterly consolidated financial statements (Segment information, etc.)[Polymers Segment]
In the Polymers Segment, net sales increased due to the contribution of price revisions and steady sales of highvalue-added products. However, operating profit decreased owing to rising energy prices and deterioration of
profitability in the Southeast Asia.
In the Films business, the packaging sector suffered the impact of intensifying competition and a decline in sales
prices caused by sluggish supply and demand in the Southeast Asia. In the industrial sector, sales volume decreased,
mainly in films for electronic components. Accordingly, the Films business saw both net sales and profit decrease.
In the Plastics business, there were signs for a recovery in sales for automobile component applications. However,in electronic component applications, sales of engineering plastics remained flat and sales volume of functional
plastics declined, since demand for final products slackened in both Japan and overseas. The ongoing depreciationof the yen increased overseas sales after translation to the yen. Accordingly, the Plastics business saw net sales growand profit decline.
Consequently, the Polymers Segment posted operating profit of 167 million yen (down 87.2% year on year) on
net sales of 12,727 million yen (up 0.3% year on year).
[Performance Materials Segment]
In the Performance Materials Segment, both net sales and operating profit decreased mainly due to a slow recovery
in sales for electronic materials applications, despite steady sales for building and civil engineering applications.
In the Activated Carbon Fibers business, overseas sales grew, but sales for water purifier applications and electricand electronic sectors didn’t increase in Japan.
In the Glass Fibers business, in the industrial materials sector, sales for building and civil engineering applications,such as incombustible tents, were robust. However, sales of IC cloth for electronic materials applications declined
drastically.
In the Glass Beads business, sales for road applications were sluggish due to a fall in the number of projects
associated with torrential rain disasters. Sales for both industrial and retro-reflective material applications were weak.
In the Non-woven Fabrics business, sales for infrastructure materials applications steadily grew, sales, mainly forthe daily product applications, decreased.
In the Industrial Fibers business, as demand for filter and building and civil engineering applications were strong,sales remained unchanged from the previous year.
Consequently, the Performance Materials Segment posted an operating loss of 666 million yen (versus an
operating profit of 142 million yen in the previous year) on net sales of 7,938 million yen (down 11.2% year onyear).

-2-

Unitika Ltd. (3103)

Financial Results for 1st Quarter of Fiscal Year Ending March 31, 2024

[Fibers and Textiles Segment]
In the Garments, Lifestyle Materials and Bedding business, profitability improved since the business revised its
product price to cope with a rise in production costs, including the surge of raw material and fuel prices that
continued from the previous year. However, the business failed to get out of the red on an operating profit basis dueto the impact of a decrease in both sales for industrial materials applications and overseas sales. In the garments,
lifestyle materials and bedding sector, sales in the uniform sector, a mainstay of this business, were steady and sales
recovered in the women’s clothing and bedding sectors.
Consequently, the Fibers & Textiles Segment posted an operating loss of 195 million yen (versus an operating
loss of 462 million yen in the previous year) on net sales of 7,261 million yen (down 8.8% year on year).
[Others]
The Others category posted an operating loss of 15 million yen (versus an operating loss of 8 million yen in theprevious year) on net sales of 12 million yen (down 32.1% year on year).
(2) Explanation of financial position
Total assets increased by 849 million yen from the end of the previous consolidated year to 190,853 million yen
mainly due to a rise in cash and deposits and inventories despite a decrease in notes and accounts receivable-trade,and contract assets. Liabilities grew by 2,089 million yen from the end of the previous consolidated year to 148,174
million yen. This was primarily due to an increase in other current liabilities and other non-current liabilities despitea decline in provision for bonuses. Net assets diminished by 1,239 million yen from the end of the previous
consolidated year to 42,678 million yen. This was mainly due to a decrease in foreign currency translation
adjustment.
(3) Explanation of future forecast information including forecast of consolidated performance
Concerning the forecast of consolidated performance for the fiscal year ending March 31, 2024, please refer to the“Notice Concerning Posting Non-Operating Income (Foreign Exchange Gains) and Revision of Consolidated
Performance” announced on August 7, 2023.

-3-

Unitika Ltd. (3103)

Financial Results for 1st Quarter of Fiscal Year Ending March 31, 2024

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly consolidated balance sheets
Previous consolidated
fiscal year
(March 31, 2023)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade, andcontract assets
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Machinery, equipment and vehicles, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-(Unit: Millions of yen)
Q1 of current consolidated fiscal
year ending March 2024
(June 30, 2023)

10,548

11,176

23,104

22,38135,7395,506(53)
74,84537,1735,128(53)
75,80625,99662,605
19,711
108,313

27,52862,62018,119108,269

2,171
2,171

2,122
2,122

4,783
(110)
4,673
115,158
190,003

4,767
(112)
4,655
115,046
190,853

Unitika Ltd. (3103)

Financial Results for 1st Quarter of Fiscal Year Ending March 31, 2024

(Unit: Millions of yen)
Q1 of current consolidated fiscal
year ending March 2024
(June 30, 2023)

Previous consolidated
fiscal year
(March 31, 2023)
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-5-

15,269
4,124
2,643
202
1,554
35
9,147
32,977

15,417
4,095
2,637
166
833
35
10,69333,88086,671
14,375
12,060113,107
146,085

86,33814,323
13,631
114,294
148,174

100
11,476
27,467(57)
38,986100
11,47627,421(57)
38,940

544

695

4
6,244
(3,452)
(217)

22
6,244
(4,691)
(187)

3,123

2,082

1,808
43,918190,003

1,655
42,678
190,853

Unitika Ltd. (3103)

Financial Results for 1st Quarter of Fiscal Year Ending March 31, 2024

(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income(Quarterly consolidated statements of income)(Three-month period ended June 30, 2023)(Unit: Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using
equity method
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using
equity method
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit(Loss) attributable to non-controlling interests
Profit attributable to owners of parent

Three-month period
Three-month period
ended June 30, 2022
ended June 30, 2023
(April 1, 2022 to June 30, 2022) (April 1, 2023 to June 30, 2023)
29,59927,94023,007
23,259
6,592
4,681
5,604
5,358
987
(676)

-6-

14
28

15
26

—

1

1,956
191
2,190

1,624
122
1,791

260

235

3

—

107
371
2,806

116
351
762

0
0

—

218
3
221
2,584
193
350
544
2,040
(0)
2,040

161
1
163
599
76
351
427
172
(64)
237

—

Unitika Ltd. (3103)

Financial Results for 1st Quarter of Fiscal Year Ending March 31, 2024

(Quarterly consolidated statements of comprehensive income)(Three-month period ended June 30, 2023)(Unit: Millions of yen)

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 to noncontrolling interests

Three-month period
Three-month period
ended June 30, 2022
ended June 30, 2023
(April 1, 2022 to June 30, 2022) (April 1, 2023 to June 30, 2023)
2,040
172

-7-

(31)

150

3
(663)

18
(1,327)

61

29

(630)
1,410

(1,129)
(956)

1,419

(803)

(9)

(153)

Unitika Ltd. (3103)

Financial Results for 1st Quarter of Fiscal Year Ending March 31, 2024

(3) Notes on quarterly consolidated financial statements(Notes on assumption of going concern)
Not applicable(Notes on a significant change in shareholders’ equity)
Not applicable(Segment information, etc.)[Segment information]
I. Three-month period ended June 30, 2022 (April 1, 2022 to June 30, 2022)
1. Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment
Polymers

Performance Fibers &Materials
Textiles

Total

Other
(Note 1)

Total

Amount posted in
Adjustment Quarterly consolidated(Note 2)statements of income(Note 3)

Net sales
Net sales to outside customers

12,684

8,937

7,959

29,581

18

29,599—29,599Inter-segment sales or transfer

1,464

496

31

1,992

—

1,992

(1,992)—

Total

14,148

9,434

7,991

31,57418

31,592(1,992)

29,599

1,307

142

(462)

987

(8)

979

8

987

Segment income (loss)(Notes) 1. The Other segment includes business segments that are not included in reportable segments.
2. Adjustment for Segment income (loss) is attributable to the elimination of inter-segment transactions and the adjustment of
inventories.
3. Segment income (loss) is adjusted with operating profit in consolidated statements of income.

II. Three-month period ended June 30, 2023 (April 1, 2023 to June 30, 2023)
1. Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment
Polymers

Performance Fibers &Materials
Textiles

Total

Other
(Note 1)

Total

Amount posted in
Adjustment Quarterly consolidated(Note 2)statements of income(Note 3)

Net sales
Net sales to outside customers

12,727

7,938

7,261

27,92812

27,940—27,940Inter-segment sales or transfer

1,113

433

34

1,580

—

1,580

(1,580)—Total

13,841

8,371

7,296

29,50912

29,521(1,580)27,940

167

(666)

(195)

(694)

(15)

(710)

33

(676)

Segment income (loss)(Notes) 1. The Other segment includes business segments that are not included in reportable segments.
2. Adjustment for Segment income (loss) is attributable to the elimination of inter-segment transactions and the adjustment of
inventories.
3. Segment income (loss) is adjusted with operating loss in consolidated statements of income.

2. Items concerning a change in reportable segments, etc.
As the Unitika Group reviewed the classification of businesses in the first quarter of the current consolidated
fiscal year, it changed the reporting segment of some consolidated subsidiaries from “Polymers” to “Fibers& Textiles.”Accordingly, the Group reported segment information for the corresponding year-earlier period after being
retrospectively restated based on the segment classification after the change.

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