Member of Financial Accounting Standards Foundation

Financial Report for Fiscal Year ended March 31, 2017 [Japanese GAAP] (Consolidated)
May 12, 2017
Company name: Unitika Ltd.
Listed stock exchange: Tokyo Stock Exchange
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 date for holding a regular shareholders meeting: June 29, 2017
Expected date for submitting securities report: June 29, 2017
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 less than one million yen were omitted.)

1. Consolidated performance for fiscal year ended March 31, 2017 (April 1, 2016 to March 31, 2017)(1) Consolidated business results(Percentages represent changes from same period in previous year.)Net sales

Profit attributable toowners of parent% Millions of
%
yen
53.7
7,389
6.6
(11.2)
6,933—

Operating income

Ordinary income

Millions of% Millions of% Millions of
yen
yen
yen
FY ended March 31, 2017
126,219(13.8)
12,53820.0
10,483
FY ended March 31, 2016
146,474(8.0)
10,45017.2
6,821(Note) Comprehensive income
FY ended March 31, 2017: 8,103 million yen [14.7%]
FY ended March 31, 2016: 7,062 million yen [—%]Net income per Diluted net income
Ratio of operating
Return on equity
Return on asset
share
per share
income to sales
Yen
Yen
%
%
%
FY ended March 31, 2017
11.08
5.75
19.3
4.9
9.9
FY ended March 31, 2016
10.29
5.50
22.0
3.0
7.1
(Reference) Equity in earnings/losses of affiliates
FY ended March 31, 2017: 13 million yen
FY ended March 31, 2016: (3) million yen(2) Consolidated financial situation
Total assets
Net assets
Capital adequacy ratio
Millions of yen
Millions of yen%
FY ended March 31, 2017
211,872
45,26419.7
FY ended March 31, 2016
219,957
37,936
15.7(Reference) Shareholders’ equity: FY ended March 31, 2017: 41,841 million yen
FY ended March 31, 2016: 34,598 million yen

Net assets per share
Yen
5.80(6.76)(3) Consolidated cash flows situation
Cash flows fromoperating activities

Cash flows frominvesting activities

Millions of yen
18,111
11,661

FY ended March 31, 2017
FY ended March 31, 2016

Cash flows fromfinancing activities

Millions of yen(4,158)4,124Millions of yen(19,089)(5,010)

Balance of cash andcash equivalents atperiod end
Millions of yen
36,89042,023

2. Dividend payment
Annual dividend per share

FY ended March 31, 2016
FY ended March 31, 2017
FY ending March 31, 2018
(forecast)End of Q1

End of Q2

End of Q3

Year end

Total

Yen

Yen

Yen

Yen

Yen




0.00
0.00




0.00
0.00

0.00
0.00



0.00



0.00

0.00

Annualdividends paid
(Total)Dividend
payout ratio(consolidated)

Dividend ratioof net assets(consolidated)

Millions of
yen



%

%









(Note) The above Dividend payment refers to dividends paid to the holders of common stock. For details of dividend payment to the holders of classshares (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 the previous year.)
Profit attributable
Net income
Operating income Ordinary income
to owners ofper share
parentNet sales

1st half of FY ending March 31,
2018
FY ending March 31, 2018

Millionsof yen%Millionsof yen%63,5001.5

4,900

131,000

3.8

10,700Millionsof yen%Millionsof yen%Yen(21.9)

3,400 (17.7)

2,300(35.9)

3.64(14.7)

7,300 (30.4)

4,900(33.7)

78.07(Note) The forecast for net income per share for the fiscal year ending March 31, 2018 is the value after reflecting the impact of the shareconsolidation.
For details, please refer to the section on Explanation on appropriate use of forecasts of performance and other special items.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying
change of scope of consolidation): Yes
New companies: 1 company; (company name): UNITIKA ADVANCE (THAILAND) Co., LTD.
Excluded companies: 2 companies; (company name): Unitika Realty Co., Ltd. and Unimore 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 the term (including treasury stock):
Fiscal year ended March 31, 2017: 577,523,433 sharesFiscal year ended March 31, 2016: 577,523,433 shares(ii) Number of treasury stocks at end of the term
Fiscal year ended March 31, 2017: 817,969 sharesFiscal year ended March 31, 2016: 805,686 shares(iii) Average number of shares outstanding during the term
Fiscal year ended March 31, 2017: 576,713,061 sharesFiscal year ended March 31, 2016: 576,723,333 shares(Reference) Summary of non-consolidated performance
1. Non-consolidated performance for fiscal year ended March 31, 2017 (April 1, 2016 to March 31, 2017)(1) Non-consolidated business results(Percentages represent changes from same period in previous year.)
FY ended March 31, 2017
FY ended March 31, 2016

Net sales
Millions of yen
79,04085,838Operating income
Ordinary income
Net income% Millions of yen% Millions of yen% Millions of yen
%
(7.9)
9,823
10.2
8,088
36.2
7,845
6.7
(8.6)
8,917
29.1
5,939
7.1
7,355 —Net income per share
FY ended March 31, 2017
FY ended March 31, 2016

Yen
11.87
11.02

Diluted net income per share
Yen
6.10
5.83

(2) Non-consolidated financial situation
Total assets
Net assets
Capital adequacy ratio
Millions of yen
Millions of yen%
FY ended March 31, 2017
192,061
46,23624.1
FY ended March 31, 2016
203,043
39,157
19.3(Reference) Shareholders’ equity: FY ended March 31, 2017: 46,236 million yen
FY ended March 31, 2016: 39,157 million yen* Quarterly reports of financial results are not subject to audit.

Net assets per share
Yen
13.42
1.15

* 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. Overview of Business Performance (4) Future Forecast on page 4 of the attachment.
(Forecast of business performance after the share consolidation)
The Board of Directors of the Company resolved at its meeting held on May 12, 2017 that consolidation of shares be proposed toshareholders at the 207th General Meeting of Shareholders to be held on June 29, 2017 and upon obtaining approval fromshareholders at the general meeting, the Company will implement share consolidation effective as of October 1, 2017 byconsolidating 10 common shares of the Company into one common share.
Forecasts of the consolidated results (full year) for the fiscal year ending March 31, 2018 excluding the impact of the scheduledshare consolidation are as follows:- Net income per share for the fiscal year ending March 31, 2018 (full year): 7.81 yen

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, 2016
FY ended March 31, 2017——

FY ending March 31, 2018 (forecast)—Class B share
FY ended March 31, 2016
FY ended March 31, 2017

End of Q2

Yen

Yen

End of Q3

Yen
0.00
0.00

—
—

Yen

0.00

—

Total

Yen
12,000.00
12,000.00

Yen
12,000.00
12,000.00

12,000.00

12,000.00
Yen
23,740.00
23,740.00

—
—

Yen
0.00
0.00

—
—

Yen
23,740.00
23,740.00

FY ending March 31, 2018 (forecast)

—

0.00

—

23,740.00

23,740.00

Class C share
FY ended March 31, 2016
FY ended March 31, 2017

—
—

Yen
0.00
0.00

—
—

Yen
60,000.00
60,000.00

Yen
60,000.00
60,000.00

FY ending March 31, 2018 (forecast)

—

—

—

—

Yen

—

Yen

Year end

YenUnitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2017

 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 ......................................................................................................................................... 4(4) Future forecast ..................................................................................................................................................... 4(5) Basic policy for profit distribution and dividends for the fiscal year ended March 31, 2017 and the fiscal year
ending March 31, 2018 ........................................................................................................................................ 4
2. Basic Approach to the Selection of Accounting Standards ...................................................................................... 5
3. Consolidated Financial Statements and Major Notes to Consolidated Financial Statements................................... 6(1) Consolidated balance sheets ................................................................................................................................ 6(2) Consolidated income statement and consolidated comprehensive income statement ......................................... 8(Consolidated income statement) ........................................................................................................................ 8(Consolidated comprehensive income statement) ............................................................................................... 9(3) Consolidated statements of changes in net assets .............................................................................................. 10
Previous consolidated fiscal year (April 1, 2015 to March 31, 2016) .............................................................. 10(4) Consolidated statements of cash flow ................................................................................................................ 12(5) Notes regarding consolidated financial statements ............................................................................................ 13(Notes regarding assumption of a going concern)............................................................................................. 13(Significant items that are the basis for preparation of consolidated financial statements) .............................. 13(Additional information) ................................................................................................................................... 14(Segment information etc.)................................................................................................................................ 15(Per share information) ..................................................................................................................................... 18(Material subsequent events)............................................................................................................................. 18
4. Supplementary Materials ........................................................................................................................................ 19-1-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2017

1. Overview of Business Performance(1) Overview of business performance of the year
In the year ended March 31, 2017, the Japanese economy showed signs of modest recovery, supported by
improvement in corporate earnings and in the employment and income environment, although recovery inpersonal spending was slow. The outlook for overseas economies remained unclear due to the slow-down ofgrowth in China and emerging countries and growing economic uncertainty caused by Brexit (the decision of
the United Kingdom to leave the EU) and the new U.S. Administration’s economic policies.
Under these circumstances, the Unitika Group endeavored to strengthen its foundation as a functional materials
manufacturer centering on the Polymers business and implement measures to improve profitability with the aimof achieving its targets at an early stage under the growth strategy stated in its medium-term management plan,
launched in 2014.
The Company has implemented measures to solidify its financial structure. As for loans from financial
institutions, the Company had requested to maintain the balance by the end of September 2017. Since parts ofthese loans have been repaid and a syndicated loan was executed, the maintenance of the balance was terminatedas of the end of March 2017, earlier than scheduled. Moreover, regarding Class C shares, the Company decided
to buy back and retire all outstanding Class C shares (worth 10 billion yen) on June 30, 2017 pursuant to the
Articles of Incorporation of the Company and the Companies Act.
In this consolidated fiscal year, the Unitika Group reported net sales of 126,219 million yen (down 13.8% yearon-year), operating income of 12,538 million yen (up 20.0% year-on-year), ordinary income of 10,483 million
yen (up 53.7% year-on-year), and profit attributable to owners of parent of 7,389 million yen (up 6.6% year-onyear).
As for the consolidated year ended March 31, 2017, no dividends will be distributed for common shares; weseek your understanding in this regard.
Here is a summary of business by segment.
[Polymers]
In the Films business, sales of the packaging sector were strong, supported by strong sales of seasonal products
and the increased sales of high value-added products such as EMBLEM HG, a new barrier nylon film. In overseas
markets, both net sales and profit grew due to the recovery of the Asian market and an increase in the production
capacity of P.T. EMBLEM ASIA (EMBLEM ASIA), a subsidiary in Indonesia. In the industrial sector, profit
increased due to the sales expansion of high value-added products such as Uni-peel, a silicon-free mold release
PET film and Uni Amid, heat-resistant polyamide film, while the sales volume of information terminal devices
and others decreased slightly in the area of electric and electronics applications. Consequently, the Films
business recorded increased sales and increased profit.
In the Resin business, sales of elitel, a thermoplastic saturated copolymeric polyester resin, grew steadily,
supported by demand for solar cell applications in overseas markets. Sales of U-Polymer, the Company’s original
polyarylate resin, were also robust for information terminal applications. However, sales of general-purpose
ester resins were sluggish. High-value-added products, such as high-intensity metallic nano-composite nylon
resins using the Company’s proprietary method, found increased adoption in automobile applications.
Consequently, the Resin business recorded decreased sales and increased profit.
In the Non-woven Fabrics business, the sales volume of polyester spunbond fabrics grew for industrial material
applications, such as interior and construction materials, but remained weak for other applications. In THAIUNITIKA SPUNBOND CO., LTD. (TUSCO), a subsidiary in Thailand, overseas sales of carpets and otherproducts for industrial material applications were robust. Sales of cotton spunlace were strong for daily productapplications, such as skin care goods, and the export volume also expanded. Consequently, the Non-woven
Fabrics business recorded decreased sales and increased profit.
Consequently, the Polymers business posted operating income of 10,035 million yen (up 25.4% year-on-year)
on net sales of 55,057 million yen (down 2.2% year-on-year).

-2-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2017

[Advanced Materials]
In the Glass Fibers business, sales of products for civil engineering applications were weak in the industrial
material sector, while sales for construction and environmental applications were strong. IC cloth in theelectronic materials sector suffered weak sales due to the slow recovery in demand for information terminal
applications.
In the Glass Beads business, orders for reflective material applications from some users have decreased, whilesales for road marking applications in Japan and industrial applications, such as automotive parts, were robust.
Improvements in the product lineup also supported the increase in earnings in general.
In the Activated Carbon Fibers business, the general demand for mainstay water purifiers was weak while salesof faucet built-in water purifiers were robust. On the other hand, sales for automotive VOC removal andindustrial filter applications were strong.
Consequently, the Advanced Materials business posted operating income of 1,130 million yen (down 21.9%
year-on-year) on net sales of 12,089 million yen (up 1.5% year-on-year).
[Fibers and Textiles]
In the Industrial Materials business, the component ratio of high value-added products, such as compound fibers,
increased in the product line-up of ultra-high-strength polyester filament yarn. The demand for civil engineeringand construction applications also recovered in the second half of the year. Mainly due to these factors, sales ofultra-high-strength polyester filament yarn increased. In the short-fiber polyester business, earnings were secured
in line with the Company’s initial plan due to efforts to expand sales of high-value-added products, althoughsales decreased due to the downsizing of the business associated with the structural reform the Company
completed by the previous year.
In the Garments, Lifestyle Materials and Bedding business, sales of the uniform sector improved, supported by
the demand of corporate customers and the reduction of procurement costs. In the women’s clothing sector,
ZEROG, a highly chromogenic and rebounding polyester, became a hit product in the women’s clothing market.
On the other hand, sales of raw materials for sportswear, bedding goods and innerwear applications and exports
of denim remained sluggish, leading to a decline in sales in the Garments, Lifestyle Materials and Bedding
business.
Consequently, the Fibers and Textiles business posted operating income of 1,932 million yen (up 21.8% yearon-year) on net sales of 55,535 million yen (down 15.1% year-on-year).

[Others]
The Others category posted an operating loss of 578 million yen (an operating loss of 630 million yen in theprevious year) on net sales of 3,536 million yen (down 72.4% year on year), due to the effects of the transfer ofshares, the liquidation of subsidiaries and the transfer of businesses associated with the business portfolio
restructuring implemented in the previous year.
(2) Overview of financial position
Total assets decreased by 8,084 million yen from the end of the previous consolidated year to 211,872 million
yen, mainly due to the decrease in cash and deposits and inventories. Liabilities decreased by 15,412 million yen
to 166,608 million yen, mainly due to the decrease in interest-bearing liabilities while trade payables increased.
Net assets increased by 7,327 million yen to 45,264 million yen. This was mainly due to an increase in retained
earnings by booking profit attributable to owners of parent.

-3-Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2017(3) Overview of cash-flow
Cash and cash equivalents (hereinafter referred to as “net cash”) as of March 31, 2017 decreased by 5,133 million
yen to 36,890 million yen.
(Net cash provided by [used in] operating activities)
Cash flows from operating activities increased by 18,111 million yen during the current consolidated fiscal
year (up 55.3% year-on-year) mainly due to cash-in-flow, which added depreciation to profit before income
taxes.
(Net cash provided by [used in] investing activities)
Cash flows from investing activities decreased by 4,158 million yen during the current consolidated fiscal year
(increased by 4,124 million yen in the previous consolidated fiscal year) due to the posting of expenses related
to capital expenditures.
(Net cash provided by [used in] financing activities)
Cash flows from financing activities decreased by 19,089 million yen during the current consolidated fiscal
year (decreased by 5,010 million yen in the previous consolidated fiscal year), mainly due to the repayment ofloans payable.
(Reference) Changes in cash flow-related indicators(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, 2017

Year ended
March 31, 2016

Year ended
March 31, 2015

19.7

15.7

12.0

25.3

14.2

13.4

6.2

11.1

22.5

8.8

4.9

2.3

(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 whichinterest is paid.
(4) Future forecast
The Unitika Group has implemented businesses under the medium-term management plan launched in 2014.
Since the planned structural reform has almost been completed and we achieved the solidification of the financial
structure earlier than scheduled, we have established a new medium-term management plan called “G round 20—
to The Next Stage” comprising the three pillars of “Growth,” “Global” and “Governance,” to solidify thefoundation for a further stride of growth. By steadily implementing the measures contemplated in the new
medium-term management plan, we forecast that we can record net sales of 131,000 million yen, operating profitof 10,700 million yen, ordinary profit of 7,300 million yen and profit attributable to owners of parent of 4,900
million yen in the year ending March 31, 2018.
(5) Basic policy for profit distribution and dividends for the fiscal year ended March 31, 2017 and the fiscal year
ending March 31, 2018
The Unitika Group considers that the profit distribution to its shareholders is an important aspect of its business,but management intends to cancel payment of dividends on common stock for the fiscal year ended March 31,
2017, giving due consideration to the business results and financial situation at the end of the fiscal year.
-4-Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2017

For the future, Unitika’s basic dividend policy is to conduct profit distribution to shareholders appropriate to theCompany’s financial results. At the same time, the Company intends to decide dividend payment after considering
the improvement of financial position and enhancing of internal reserve for securing profit for shareholders froma long-term perspective.
Regarding dividends for the classified stock issued through third party allocations in July 2014, the Company
plans to provide the following dividends based on the classified stock issuance guidelines determined at the timeof issuance: 12,000 yen per class A share; 23,740 yen per class B share; and 60,000 yen per class C 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
the comparability of performance with competitors in Japan.

-5-Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2017

3. Consolidated Financial Statements and Major Notes to Consolidated Financial Statements(1) Consolidated balance sheets(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2016)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Deferred tax assets
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
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-6-

Current consolidated
fiscal year
(March 31, 2017)

42,10135,811
27,566
1,306
2,921
(106)
109,601

37,03034,11625,704
1,457
3,375
(89)
101,595

11,35522,068
911
66,869171
2,791
104,168

11,34921,393920
66,496
121
3,508
103,791

1,714
1,714

2,035
2,035

2,963
9
62
13
283
1,171
(32)
4,473
110,356
219,957

2,929
8
40
12
281
1,205
(26)
4,450
110,277
211,872

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2017

(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2016)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
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
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for land revaluation
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-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-7-

Current consolidated
fiscal year
(March 31, 2017)15,322
1,827
363
139
215
1,256
2,630
989
—
9,159
31,90417,506
3,438
2,756
117
1,167
1,451
1,670
152
980
8,954
38,194

124,142
642
9,273
3,547
7
11,513989
150,116
182,020

103,132
483
9,191
3,580
4
11,209810
128,414
166,608100
28,401
5,708(46)
34,164100
28,40012,117(47)
40,572

433
(203)
6,474
(2,662)(3,608)
434

480
8
6,415
(2,856)(2,779)
1,269

3,338
37,936219,957

3,422
45,264
211,872

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2017(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
Rent income
Share of profit of entities accounted for using equity
methodGain on bad debts recovered
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on sales of shares of subsidiaries and associates
Gain on transfer of business
Reversal of provision for product repair warranties
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment loss
Loss on sales of shares of subsidiaries and associates
Business structure improvement expenses
Loss on anti-monopoly act
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent-8-

Previous consolidated
fiscal year
(April 1, 2015 toMarch 31, 2016)
146,474
114,943
31,53021,08010,450Current consolidated
fiscal year
(April 1, 2016 to
March 31, 2017)
126,219
94,18932,02919,491
12,538

73
83
317

47
76
240

—
—
469
943

13
266
320
966

2,367

1,951

3
2,200
4,572
6,821

—
1,070
3,021
10,483

1,290
—
375
43
198
1,908

784
224
—
—
—
1,009

527
226
2,098
962
—
138
3,953
4,775
215
(2,387)(2,171)
6,947
13
6,933

862
—
—
1,223
1,203
151
3,440
8,052
1,064
(271)
793
7,258
(130)
7,389

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2017

(Consolidated comprehensive income statement)(Unit: Millions of yen)

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

Previous consolidated
fiscal year
(April 1, 2015 toMarch 31, 2016)
6,947

Current consolidated
fiscal year
(April 1, 2016 to
March 31, 2017)
7,258

(35)
22
123
173

46
216
(41)
(206)

(168)
115
7,062

829
844
8,103

7,006

8,242

56

(138)

-9-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2017(3) Consolidated statements of changes in net assets
Previous consolidated fiscal year (April 1, 2015 to March 31, 2016)(Unit: Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current period

Capital surplus
100

Retained earnings

60,275

Total shareholders’equityTreasury shares(31,138)(45)

29,191

Changes of items during period
Dividends of surplus-other capital surplus

(666)

(666)

Profit attributable to owners of parent

6,933

6,933

Purchase of treasury shares(0)

Capital increase of consolidated
subsidiaries
Purchase of shares of consolidated
subsidiaries
Deficit disposition

(47)

(47)

(47)

(47)

(31,112)

Reversal of revaluation reserve for land
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period(0)31,112—(1,198)(1,198)—(31,874)

36,847

(0)

4,972

100

28,401

5,708

(46)

34,164

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balance at beginning of current period

468

Deferred
gains orlosses onhedges(224)

Revaluation
reserve for
land

5,165

Total
NonForeign
Reaccumulated
controllingcurrency measurements
otherof definedinterests
translation
comprehenadjustment benefit plans
sive income(2,807)(3,439)

(837)

3,236

Total net
assets31,590Changes of items during period
Dividends of surplus-other capital surplus(666)

Profit attributable to owners of parent

6,933

Purchase of treasury shares(0)

Capital increase of consolidated
subsidiaries
Purchase of shares of consolidated
subsidiaries

47

(47)
—

Deficit disposition
Reversal of revaluation reserve for land
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at end of current period

—

1,198

—

1,198

(35)

21

110

144

(168)

72

55

128

(35)

21

1,309

144

(168)

1,271

102

6,346

433

(203)

6,474

(2,662)(3,608)

434

3,338

37,936- 10 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2017

Current consolidated fiscal year (April 1, 2016 to March 31, 2017)(Unit: Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current period

Capital surplus
100

Retained earnings

28,401

Total shareholders’equityTreasury shares

5,708

(46)

34,164

Changes of items during period
Dividends of surplus

(997)

(997)

Profit attributable to owners ofparent

7,389

7,389

Purchase of treasury shares(0)

Purchase of shares of consolidated
subsidiaries

(0)

(0)

(0)

Reversal of revaluation reserve for
land

17

17

Net changes of items other thanshareholders’ equity
Total changes of items during
period

—

(0)

6,409

(0)

6,407

Balance at end of current period

100

28,40012,117(47)

40,572

Accumulated other comprehensive income
Valuationdifference on
available-forsale
securities
Balance at beginning of current period

433

Deferred
gains orlosses onhedges(203)

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive income

Noncontrollinginterests

Total net
assets6,474(2,662)(3,608)

434

3,338

37,936

Changes of items during period
Dividends of surplus(997)

Profit attributable to owners ofparent7,389

Purchase of treasury shares(0)

Purchase of shares of consolidated
subsidiaries(0)

Reversal of revaluation reserve forland
Net changes of items other thanshareholders’ equity

(17)

—

(17)

46

212

(41)

(194)

829

853

84

937

Total changes of items during
period

46

212

(58)

(194)

829

835

84

7,327

Balance at end of current period

480

8

6,415

(2,856)(2,779)

1,269

3,422

45,264- 11 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2017(4) Consolidated statements of cash flow
(Unit: Millions of yen)Previous consolidated
fiscal year
(April 1, 2015 toMarch 31, 2016)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Business structure improvement expenses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for business structure improvement
Increase (decrease) in provision for product repair
Increase (decrease) in provision for loss on anti-monopoly act
Increase (decrease) in other provisionInterest expenses
Loss (gain) on disposal of non-current assets
Loss (gain) on sales of non-current assets
Gain on transfer of business
Loss (gain) on sales of investment securities
Loss (gain) on sales of shares of subsidiaries and associates
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
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
Proceeds from transfer of business
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 loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 12 -

Current consolidated
fiscal year
(April 1, 2016 to
March 31, 2017)

4,775
4,831
226
962
(253)
(803)
(464)
(1,317)
—
(170)
2,367
527
(1,290)
(43)
—
1,723
2,141
6,084
(2,805)(1,929)14,561154(2,371)(683)
11,661

8,052
4,526
—
1,223
(23)
539
(644)
(960)
980
192
1,951
862
(784)
—
(224)
—
1,659
1,829
2,298
(1,295)20,183124(2,058)(137)
18,111

(49)
(20)
101
(5,476)
9,028
93

(60)
(10)
345
(5,099)
1,227
—

750

—

(304)
4,124

(560)
(4,158)198—(4,221)(666)(320)(5,010)(459)
10,31531,70842,023

1,481
104,853(124,234)
(997)
(192)
(19,089)3(5,133)42,02336,890Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2017(5) Notes regarding consolidated financial statements(Notes regarding assumption of a going concern)
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 theconsolidated group,” “items related to the fiscal closing dates of consolidated subsidiaries,” and “items related toaccounting policies” stated below.
(Scope of consolidation)(1) Number of consolidated subsidiaries: 31 companies
Name of major consolidated subsidiaries:
NIPPON ESTER CO., LTD.
UNITIKA TRADING CO., LTD.
During the current consolidated accounting year, the number of consolidated subsidiaries has declined in
the following ways: one subsidiary was newly established and included in the consolidation, and two
companies were merged into the Company and excluded from the consolidation.
(2) Name of major non-consolidated subsidiaries:
Major 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, net income (loss) (corresponding to equity interest) and retained earnings(corresponding to equity interest) of non-consolidated subsidiaries are small and do not significantly influence
the Company’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 companies adopt fiscal closing dates different from the fiscal closing date for the
consolidated accounting, as follows:
December 31 --- P.T. EMBLEM ASIA and 10 other subsidiaries
February 28 --- UNITIKA (HONG KONG) LTD.
When creating consolidated financial statements of the Company, the financial statements as of theclosing dates of these subsidiaries are used, and necessary adjustments are made for importanttransactions occurring in these subsidiaries after their closing dates until the closing date for the
consolidated accounting.
(Items related to accounting policies)
Basis for Recognizing Important Provisions to Reserves and Allowances
Provision for loss on antitrust act proceedings
An amount reasonably estimated is provided to prepare for potential loss from any payment on
antitrust act proceedings in the future.

- 13 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2017

(Additional information)
1. Buy-back and retirement of Class C shares
At the meeting of the Board of Directors held on March 21, 2017, the Company resolved to acquire all
outstanding shares of Class C of the Company (worth 10 billion yen in total) in exchange for payment of money
pursuant to Article 13-4 (6) of the Articles of Incorporation (Acquisition in exchange for money) and retire thebought-back shares pursuant to Article 178 of the Companies Act.
(1) Details of buy-back of Class C shares(i) Type of shares to be bought back: Class C shares(ii) Shareholder from which shares will be bought back: Japan Industrial Solutions Fund I (limited liability
partnership)(iii) Total number of shares to be bought back: 10,000 shares(iv) Acquisition price: 1,194,958.9 yen per shareNote) The acquisition price above is determined by multiplying the amount paid in for one Class C
share (1,000,000 yen) by 1.18 and adding preferred dividends payable calculated on a daily
basis (14,958.9 yen). This price is calculated on the assumption that the payment of preferred
dividends for Class C shares for the year ended March 31, 2017 (60,000 yen per share) is
approved at the general meeting of shareholders to be held in June 2017 and will be paid toshareholders of Class C shares, and that no accumulated dividends payable exist for Class C
shares.
(v) Total share acquisition price: 11,949,589,000 yen(vi) Buy-back date: June 30, 2017
(2) Details of retirement of Class C shares(i) Type of shares to be retired: Class C shares(ii) Total number of shares to be retired: 10,000 shares(iii) Effective retirement date: June 30, 2017
The retirement of Class C shares is implemented only when the Company completes the buy-backof the outstanding Class C shares in accordance with (1) above.
2. Adoption of the Implementation Guidance on Recoverability of Deferred Tax Assets
From the current consolidated fiscal year, the Company has adopted the Implementation Guidance on
Recoverability of Deferred Tax Assets (Corporate Accounting Standards Implementation Guidance No. 26,
ASBJ, March 28, 2016).

- 14 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2017

(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 of managerial 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 businessactivities according to the strategies.
Unitika consists of segments by product and service based on divisions. The following three are its
reportable segments: Polymers, Advanced Materials, and Fibers & Textiles.
The Polymers segment manufactures and markets films, resins, and non-woven fabrics. The Advanced
Materials segment makes and sells glass fibers and so on. The Fibers & Textiles segment produces anddistributes various types of fibers (threads, cotton, textiles and 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 those employed formaking the consolidated financial statements.
Inter-segment earnings and transfers are based on prevailing market prices.

- 15 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2017

3. Information on the amount of net sales, profit or loss, assets and other items by reportable segment
The previous fiscal year (April 1, 2015 to March 31, 2016)
Reportable segment

Polymers

Advanced
Materials

Fibers &Textiles

Other(Note 1)
Total

Total

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

Net sales
Net sales to outside
customers
56,313
11,91465,431
133,659
12,814146,474—
146,474
Inter-segment sales ortransfer
10,459928
952
12,341
1,130
13,472(13,472)—
Total
66,773
12,842
66,384
146,001
13,945
159,946(13,472)
146,474
Segment income (loss)
8,002
1,447
1,586
11,036(630)
10,40544
10,450
Segment assets
100,337
17,63047,176
165,144
16,089181,233
38,723219,957
Other items
Depreciation andamortization
3,306
374
488
4,170
252
4,422
408
4,831
Increase in property, plantand equipment andintangible assets
4,230
379
506
5,116
270
5,386
1,139
6,526
(Note) 1. The "Other" segment includes business segments that are not included in the reporting segments, such as the environmental
business, and the real estate business.
2. Adjustment details are as follows.
(1) Adjustment of Segment income (loss) of 44 million yen is attributable to the elimination of inter-segment transactions.
(2) Adjustment of 38,723 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 408 million yen for Depreciation and amortization is depreciation and amortization of common assets thatare not allocated to each reportable segment.
(4) Adjustment of 1,139 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 income in the consolidated statements of income.

- 16 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2017

Current consolidated fiscal year (April 1, 2016 to March 31, 2017)
Reportable segment

Polymers

Advanced
Materials

Fibers &Textiles

Other(Note 1)
Total

Total

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

Net sales
Net sales to outside
customers
55,057
12,08955,535
122,682
3,536
126,219—
126,219
Inter-segment sales ortransfer
8,955
894
962
10,812
1,142
11,954(11,954)—
Total
64,013
12,98356,497
133,494
4,679
138,174(11,954)
126,219
Segment income (loss)
10,035
1,130
1,932
13,098(578)
12,52017
12,538Segment assets
100,528
17,11848,869166,516
10,912
177,429
34,443211,872
Other items
Depreciation andamortization
3,165
368
541
4,074
66
4,140
385
4,526
Increase in property, plantand equipment andintangible assets
3,539
328
275
4,143
44
4,187
1,436
5,624
(Note) 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 details are as follows.
(1) Adjustment of 17 million yen for Segment income (loss) is attributable to the elimination of inter-segment transactions.
(2) Adjustment of 34,443 million yen for Segment assets includes investment of surplus funds (cash and deposits) by theparent company, long-term investment funds (investment securities) and assets, etc. related to the Administration and the
Research and Development Division of the parent company.
(3) Adjustment of 385 million yen for Depreciation and amortization is depreciation and amortization of common assets thatare not allocated to each reportable segment.
(4) Adjustment of 1,436 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 income in consolidated statements of income.

- 17 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2017

(Per share information)
Previous consolidated fiscal year
(April 1, 2015 to March 31, 2016)

Current consolidated fiscal year
(April 1, 2016 to March 31, 2017)

Net assets per share(6.76) yen

5.80 yen

Net income per share

10.29 yen

11.08 yen

Net income per share after
5.50 yenfull dilution(Note) 1. The basis for the calculation of net assets per share is as follows:
Previous consolidated
fiscal year
(March 31, 2016)5.75 yen
Current consolidated
fiscal year
(March 31, 2017)

Total net assets (million yen)

37,93645,264

Amounts deducted from the total net assets (million yen)

41,834

41,919[of which amounts to be paid in for shares of class stock(million yen)][37,499][37,499]

[997]

[997]

[3,338][3,422][of which preferred dividends (million yen)][of which non-controlling interests (million yen)]

Net assets at the end of the fiscal year attributable to common(3,898)
3,345
stock (million yen)
Number of common stock at the end of the fiscal year used
576,717576,705
for calculating net assets per share (thousand shares)
2. The basis for the calculation of net income per share and net income per share after full dilution is as follows:
Previous consolidated
Current consolidated
fiscal year
fiscal year
(April 1, 2015 to(April 1, 2016 to
March 31, 2016)
March 31, 2017)
Net income per share

Profit attributable to owners of parent(million yen)

6,933

7,389

Amount not attributable to common stockholders(million yen)

997

997

[Of which preferred dividends (million yen)]

[997]

[997]

5,935

6,391

576,723576,713997

997[Of which preferred dividends (millions of yen)]

[997]

[997]

Increased number of common stock (thousand shares)

684,847

709,035[including preferred dividends (thousand shares)][684,847][709,035]

Profit attributable to common share owners of parent(million yen)
Average number of common stock during the fiscal year
(thousand shares)
Net income per share after full dilution per share
Net diluted earnings attributable to owners of parent(million yen)

Outline of potential common stock that was not included in
the calculation of net income per share after full dilution due
to the absence of a dilutive effect——(Material subsequent events)
The Board of Directors of the Company resolved today that the trading unit of Company shares be changed from 1,000 sharesto 100 shares and that a share consolidation (consolidate 10 shares into one share) be proposed to the 207th General Meetingof Shareholders, to be held on June 29, 2017.
For details, please see the “Announcement on Change in the Trading Unit, Share Consolidation and Partial Revision of the
Articles of Incorporation” published today.

- 18 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2017

4. Supplementary Materials(1) Results (consolidated)
OperatingincomeNet sales
Consolidated

FY ended March 2016

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

FY ended March 2017
FY ending March 2018
Comparison with prioryear

146,474
62,571
126,219
63,500131,000929
4,781

Ordinary
income10,4506,273
12,5384,900
10,700(1,373)(1,838)

6,821
4,133
10,483
3,400
7,300
(733)
(3,183)(Millions of yen)
Profit attributableto owners ofparent
6,933
3,585
7,389
2,300
4,900
(1,285)(2,489)(2) Segment information (consolidated)(Millions of yen)

Net sales to outside
customers
FY ended
Component ratio (%)
March 2016
Operating income
Component ratio (%)
Net sales to outside
customers
Results for
FY ended
Component ratio (%)
current fiscal
March 2017year
Operating income
Component ratio (%)
Net sales to outside
customers
Increase/decrease
Comparison with prior year from prior year (%)
Operating income
Increase/decrease
from prior year (%)
Net sales to outside
customers(Forecast) Component ratio (%)
Operating income
Component ratio (%)
FY ending
Net sales to outside
March 2018
customers(Forecast)
Increase/decrease
Comparison from prior year (%)
Operating income
Increase/decrease
from prior year (%)
Results forprior fiscal
year

Elimination
Consolidatedor
total
corporate

Polymers

Advanced
Materials

Fibers &Textiles

56,313

11,91465,431

12,814

—

38.4
8,002
76.6

8.1
1,447
13.8

44.7
1,586
15.2

8.7
(630)
(6.0)

—

55,057

12,08955,535

3,536

—

43.6
10,035
80.0

9.6
1,130
9.0

44.0
1,932
15.4

2.8
(578)
(4.6)

—

(1,256)175(9,896)(9,278)—(20,255)

(2.2)

1.5

(15.1)(72.4)—(13.8)

2,033

(317)

346

52

25.4

(21.9)

21.8

60,00012,500

45.8
8,500
79.4

Other

146,474
100.0
10,450
100.0

44
0.4

126,219100.0
12,538
100.0

17
0.1

(27)

2,088

—

(61.4)

20.0

56,000

2,500

—

9.5
1,200
11.2

42.7
1,500
14.0

1.9
(500)
(4.7)

—

4,943

411

465

(1,036)

—

4,781

9.0

3.4

0.8

(29.3)—

3.8(1,535)

70

(432)

78

(15.3)

6.2(22.4)

131,000
100.0
10,700
100.0

0
0.0

—

(17)

(1,838)(100.0)(14.7)(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)InterestDepreciation
bearing(Property,
R&D
liabilities
plant andexpenditures(end of fiscal
equipment)
year)
4,808
4,715
3,940
133,903
5,968
4,555
3,203
126,334
4,825
4,292
3,142
109,327

Capitalexpenditures

FY ended March 2015 Full year
FY ended March 2016 Full year
FY ended March 2017 Full year

Financialaccountbalance(2,446)(2,212)(1,826)

Number ofpermanent
employees(persons)
4,458
3,906
3,671

(4) Cash flow (consolidated)(Millions of yen)

FY ended March 2015 Full year
FY ended March 2016 Full year
FY ended March 2017 Full year

Cash flow fromoperating activities

Cash flow frominvestment activities

6,080
11,661
18,111(145)
4,124(4,158)- 19 -Cash and cash
equivalents at end of
fiscal year
5,870
31,708(5,010)42,023(19,089)
36,890Cash flow fromfinancing activities