Member of Financial Accounting Standards Foundation

Financial Results for the 1st Quarter of the Fiscal Year Ending March 31, 2019
August 6, 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: August 10, 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 1st quarter of fiscal year ending March 31, 2019 (April 1, 2018 to June 30, 2018)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales

Operating income

Quarterly profit
attributable to owners ofparentOrdinary income% Millions of yen% Millions of yen% Millions of yen%
32,0362,612 (22.9)
2,525 (18.0)
2,242 (9.2)
2.1
31,382
3,388
3,078
2,470 107.4
0.3
7.4
88.0
Q1 of FY ending March 31, 2019: 1,100 million yen [(49.5%)]
Q1 of FY ended March 31, 2018: 2,180 million yen [57.1%]
Diluted quarterly net income
Quarterly net income per shareper share
Millions of yen

Q1 of FY ending March 31, 2019
Q1 of FY ended March 31, 2018
(Note) Comprehensive income

Yen
37.18
41.12

Q1 of FY ending March 31, 2019
Q1 of FY ended March 31, 2018

Yen
22.68
24.73

(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
Total assets
Q1 of FY ending March 31, 2019
FY ended March 31, 2018
(Reference) Shareholders’ equity

Net assets

Capital adequacy ratio

Millions of yen
Millions of yen%
201,406
41,43218.9
201,447
40,72918.4
1st quarter of fiscal year ending March 31, 2019: 37,967 million yen
Fiscal year ended March 31, 2018: 37,165 million yen(Note) “Partial Amendments to Accounting Standard for Tax Effect Accounting” (Accounting Standards Board of Japan (ASBJ) Statement No. 28,
February 16, 2018) has been applied from the beginning of the first quarter of the current fiscal year. The change applies retroactively to the results
for the previous fiscal year.

2. Dividend payment
End of Q1

End of Q2Yen
FY ended March 31, 2018
FY ending March 31, 2019




FY ending March 31, 2019 (forecast)

Yen
0.00
0.00

Dividends per share
End of Q3
Yen

Year end

Total



Yen
0.00

Yen
0.00



0.00

0.00

(Note) Revision of the latest dividend forecast: None
(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, 2019 (April 1, 2018 to March 31, 2019)(Percentages represent changes from same period in previous year)
Profit attributable to Net income
Net sales
Operating income Ordinary income
owners of parent
per share
1st half of FY ending March 31, 2019
FY ending March 31, 2019

Millions of yen%

64,000131,500

1.5
2.4(Note) Revision of the latest forecasts of operational results: No

Millions of yen%

5,200 (10.3)
11,500 (1.4)

Millions of yen%

4,500 (15.6)
10,0000.3

Millions of yen%

Yen

3,400 (28.5)
7,000 (13.4)

55.51
114.50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): Yes
New companies: ― (company name)
Excluded companies: 1 (company name): UNITIKA EMBLEM CHINA LTD.
(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):
1st quarter of the fiscal year ending March 31, 2019: 57,752,343 sharesFiscal year ended March 31, 2018: 57,752,343 shares Number of treasury stocks at end of term
1st quarter of the fiscal year ending March 31, 2019: 92,749 sharesFiscal year ended March 31, 2018: 91,653 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
1st quarter of the fiscal year ending March 31, 2019: 57,660,093 shares
1st quarter of the fiscal year ended March 31, 2018: 57,670,424 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 term, the Number of treasury stocks at end of 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.

* 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, 2018
FY ending March 31, 2019

Yen
—
—

FY ending March 31, 2019 (forecast)Class B share
FY ended March 31, 2018
FY ending March 31, 2019
FY ending March 31, 2019 (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, 2019 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 and consolidated quarterly statements ofcomprehensive income .........................................................................................................................6
Consolidated quarterly statements of income
Three-month period ended June 30, 2018........................................................................................6
Consolidated quarterly statements of comprehensive income
Three-month period ended June 30, 2018........................................................................................7(3) Notes on quarterly consolidated financial statements ...........................................................................8(Notes on going concern assumption) ..................................................................................................8(Notes on significant changes in shareholders’ equity) ........................................................................8(Additional information).......................................................................................................................8(Segment information) ..........................................................................................................................8-1-

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2019

1. Qualitative Information on Quarterly Results(1) Explanation of operational results
During the first quarter of the consolidated fiscal year under review, the Japanese economy continued torecover moderately, supported by a pickup in personal spending amid strong corporate earnings and anaccompanying improvement in the employment environment. Moreover, overseas, business sentimentremained strong, buoyed by the growth in consumer spending and capital expenditures due to the effectof the tax cut in the United States, in the midst of a gradual economic recovery. Meanwhile, the outlook
for overseas economies remained unclear due to concerns about risks caused by the protectionist trade
policy of the U.S. administration and the situation in the Middle East.
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 32,036 million yen (up 2.1%
year on year), operating income of 2,612 million yen (down 22.9% year on year), ordinary income of
2,525 million yen (down 18.0% year on year), and profit attributable to owners of parent of 2,242
million yen (down 9.2% year on year) in the three-month period of the consolidated accounting year
under review.
Business results by segment are as stated below.
[Polymers]
In the Films business, sales in the food packaging sector increased from the previous year, supported bystrong domestic sales of summer goods and expansion in demand for products related to convenience
store goods. In addition, sales of high value-added products such as EMBLEM HG, a new barrier nylon
film, contributed to the growth in sales. In the industrial sector, sales grew steadily in the area of electricand electronics applications, supported by strong demand in the semiconductor market. Furthermore,sales of high value-added products such as Uni-peel, a silicon-free mold release PET film, were alsostrong.
In the Plastics business, sales of U-Polymer, the Company’s original polyarylate resin, continued to
expand steadily for information terminal
equipments and overseas automobile applications.
Meanwhile, demand for elitel, a thermoplastic saturated copolymeric polyester resin, recovered in solar
cell applications. Sales of other functional resins grew solidly.
In the Non-woven Fabrics business, demand for polyester spunbond fabrics recovered in daily productapplications, and sales remained strong for industrial materials and agricultural applications. THAIUNITIKA SPUNBOND CO., LTD. (TUSCO), a subsidiary in Thailand, saw sales of existing products
increase steadily for civil engineering and carpet applications, since it had consistently encouraged
customers to adopt products manufactured by its new machinery at the stage of design. Sales of cotton
spunlace continued to be strong for daily product applications, such as skin care goods.
In the Polymers business as a whole, a rise in raw material and fuel prices affected profitability greatly.
Consequently, the Polymers business posted operating income of 2,333 million yen (down 11.2% year
on year) on net sales of 15,741 million yen (up 11.1% 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 due to poor demand. However, in the electronic materials sector,
sales of IC cloth, in general, increased robustly, supported by demand for information terminal
equipments.
In the Glass Beads business, sales for road marking and industrial applications continued to be strong.
However, the reflective material applications business was forced to fight an uphill battle due to poor
demand.
In the Activated Carbon Fibers business, sales for water purifier applications, a mainstay of thisbusiness, especially faucet built-in water purifiers, increased. Sales for VOC removal and industrial
filter applications also continued growing robustly.
Consequently, the Advanced Materials business posted operating income of 304 million yen (down
16.7% year on year) on net sales of 3,052 million yen (down 0.3% year on year).
[Fibers and Textiles]
In the Industrial Materials business, sales of ultra-high-strength polyester filament yarns, mainly highvalue-added products, were relatively strong. Furthermore, sales of short-fiber polyester remained
steady. However, rising raw material prices weighed on profit.
In the Garments, Lifestyle Materials and Bedding business, sales in the sport clothing and women’s
clothing sectors were sluggish, but sales of raw fibers for high-functional materials remained steady. In-2-

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2019

addition, sales in the uniform sector were also strong, especially for corporate customers. In theOverseas business, demand for denim continued to recover.
Consequently, the Fibers and Textiles business posted operating income of 94 million yen (down 79.0%
year on year) on net sales of 12,848 million yen (down 2.1% year on year).
[Others]
The Others category posted an operating loss of 123 million yen (an operating loss of 62 million yen theprevious year) on net sales of 393 million yen (down 61.6% year on year).
(2) Explanation of financial situation
Total assets decreased by 40 million yen from the end of the previous consolidated year to 201,406
million yen, mainly due to a decline in notes and accounts receivable – trade and property, plant andequipment despite an increase in cash and deposits and inventories. Liabilities fell by 742 million yen
from the end of the previous consolidated year to 159,974 million yen, mainly due to a decrease inlong-term loans payable. Net assets grew by 702 million yen from the end of the previous consolidated
year to 41,432 million yen. This was mainly due to a rise in retained earnings caused by the posting of
profit attributable to owners of parent.
(3) Explanation of future forecast information including forecast of consolidated performance
The Company has not revised its forecast of consolidated performance for the first half and full year of
the fiscal year ending March 31, 2019 announced on May 11, 2018.

-3-

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2019

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, 2018)
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-

Q1 of FY ending March 2019
(June 30, 2018)

26,39536,552
27,202
2,899(84)
92,96527,57335,173
28,6652,303(63)
93,652

23,08165,071
13,502
101,654

22,59765,04813,606
101,251

2,139
2,139

2,081
2,081

4,707
(20)
4,686
108,481
201,447

4,459
(38)
4,421
107,754
201,406

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2019

(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2018)
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
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-

Q1 of FY ending March 2019
(June 30, 2018)

18,968
2,450
2,720
676
1,576
704
20
8,567
35,685

19,570
2,410
2,707
367
897
512
20
8,827
35,314

100,081
4
12,21812,727125,031
160,717

99,404
4
12,44012,810124,659
159,974100
16,451
19,201(55)
35,698100
16,48721,047(56)
37,579

491

504

(2)
6,415
(2,793)(2,644)
1,467
3,564
40,729201,447

7
6,415(3,985)(2,555)388
3,464
41,432
201,406

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2019(2) Consolidated quarterly statements of income and consolidated quarterly statements of comprehensive
income(Consolidated quarterly statements of income)(Three-month period ended June 30, 2018)(Unit: Millions of yen)Three-month period
ended June 30, 2017
(April 1, 2017 toJune 30, 2017)
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 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
Gain on liquidation of subsidiaries andassociates
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Business structure improvement expenses
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-6-

Three-month period
ended June 30, 2018
(April 1, 2018 toJune 30, 2018)

31,382
23,121
8,260
4,872
3,388

32,03624,055
7,981
5,368
2,612

15
39
35

5
37
35

—

7

8
163
263

199
76
360

357

309

2

—

212
572
3,078

137
447
2,525

131

—

—

401

131

401

87
38
0
126
3,084
237
368
605
2,479
8
2,470

126
—
—

126
2,800
263
282
545
2,254
11
2,242

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2019

(Consolidated quarterly statements of comprehensive income)(Three-month period ended June 30, 2018)(Unit: Millions of yen)Three-month period ended
June 30, 2017
(April 1, 2017 to June 30, 2017)

Three-month period ended
June 30, 2018
(April 1, 2018 to June 30, 2018)

Profit

2,479

2,254

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income

71
(5)
(450)
85
(298)

13
10
(1,266)89(1,153)Comprehensive income

2,180

1,100

2,240

1,163

(60)

(63)

Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests-7-

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2019(3) Notes on quarterly consolidated financial statements(Notes on going concern assumption)
Not applicable(Notes on significant changes in shareholders’ equity)
Not applicable(Additional information)(Application of “Partial Amendments to Accounting Standard for Tax Effect Accounting”)“Partial Amendments to Accounting Standard for Tax Effect Accounting” (Accounting Standards
Board of Japan (ASBJ) Statement No. 28, February 16, 2018) has been applied from the beginning of
the first quarter of the current fiscal year. Accordingly, deferred tax assets have been classified as
investments and other assets, and deferred tax liabilities have been classified as non-current liabilities.
(Segment information)
Segment Information
I. Three-month period ended June 30, 2017 (April 1, 2017 to June 30, 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

Amount posted in
Adjustment Consolidated quarterly(Note 2)statements of income(Note 3)

Net sales
Net sales to outside customers

14,172

3,062

13,12130,356

1,026

31,382—

31,382

Inter-segment sales or transfers

2,347

227

199

2,774

294

3,069

(3,069)—Total

16,5203,289

13,32033,1301,320

34,451(3,069)31,382

2,628

365

450

3,443

(62)

3,381

6

3,388

Segment income (loss)(Notes) 1. The Other segment includes business segments that are not included in reportable 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.

II. Three-month period ended June 30, 2018 (April 1, 2018 to June 30, 2018)
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

Amount posted in
Adjustment Consolidated quarterly(Note 2)statements of income(Note 3)

Net sales
Net sales to outside customers

15,741

3,052

12,84831,642393

32,036—32,036

Inter-segment sales or transfers

2,279

234

143

2,657

298

2,956

(2,956)—

Total

18,021

3,287

12,99234,300692

34,992(2,956)32,036

2,333

304

94

2,732

(123)

2,608

3

2,612

Segment income (loss)(Notes) 1. The Other segment includes business segments that are not included in reportable 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.

-8-