Member of Financial Accounting Standards Foundation

Financial Results for the 1st Quarter of the Fiscal Year Ending March 31, 2018
August 7, 2017
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, 2017
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, 2018 (April 1, 2017 to June 30, 2017)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales

Operating income

Quarterly net income
attributable to owners ofparentOrdinary income% Millions of yen% Millions of yen% Millions of yen%
31,382
3,388
3,078
2,470 107.4
0.3
7.4
88.0
31,289 (12.4)
3,153 38.7
1,637 (11.6)
1,191 (23.3)
Q1 of FY ending March 31, 2018: 2,180 million yen [57.1%]
Q1 of FY ended March 31, 2017: 1,388 million yen [(0.8%)]
Diluted quarterly net income
Quarterly net income per shareper share
Millions of yen

Q1 of FY ending March 31, 2018
Q1 of FY ended March 31, 2017
(Note) Comprehensive income

Yen
4.11
1.63

Q1 of FY ending March 31, 2018
Q1 of FY ended March 31, 2017

Yen
2.47
0.91

(2) Consolidated financial situation

Q1 of FY ending March 31, 2018
FY ended March 31, 2017
(Reference) Shareholders’ equity

Total assets
Net assets
Capital adequacy ratio
Millions of yen
Millions of yen%
196,907
34,49715.8
211,872
45,26419.7
1st quarter of fiscal year ending March 31, 2018: 31,135 million yen
Fiscal year ended March 31, 2017: 41,841 million yen

2. Dividend payment
Dividends per share
End of Q1

End of Q2
Yen
0.00

Yen
FY ended March 31, 2017
FY ending March 31, 2018
FY ending March 31, 2018
(forecast)End of Q3
Yen

Year end
Yen
0.00



0.00

Total
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, 2018 (April 1, 2017 to March 31, 2018)(% figures represent changes from same period in the previous year.)Net sales
1st half of FY ending March 31, 2018
FY ending March 31, 2018

Millions of yen%

63,500131,000

1.5
3.8

Operating income

Ordinary income

Profit attributable toowners of parent

Millions of yen

Millions of yen

Millions of yen%

5,500 (12.3)
10,700 (14.7)%

4,800 16.1
7,300 (30.4)

Net income
per share

%

Yen

3,700
3.2
4,900 (33.7)

6.07
78.07

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

Member of Financial Accounting Standards Foundation* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying change of scope of
consolidation): No
New companies: ― (company name)
Excluded companies: ―; (company name): ―(2) Adoption of special accounting methods for preparing quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
 Changes in accounting policies due to revisions of accounting standards: No Changes of accounting policies other than the above: No Changes in accounting estimates: No
 Retrospective restatement: No(4) Number of shares outstanding (Common stock) Number of shares outstanding at end of term (including treasury stock):
1st quarter of the fiscal year ending March 31, 2018: 577,523,433 sharesFiscal year ended March 31, 2017: 577,523,433 shares Number of treasury stocks at end of term
1st quarter of the fiscal year ending March 31, 2018: 819,674 sharesFiscal year ended March 31, 2017: 817,969 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
1st quarter of the fiscal year ending March 31, 2018: 576,704,248 shares
1st quarter of the fiscal year ended March 31, 2017: 576,717,677 shares* Quarterly reports of financial results are not subject to audit.

* 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.

(Forecast of business performance after the share consolidation)
At the 207th General Meeting of Shareholders held on June 29, 2017, the Company proposed the consolidation of shares to shareholders andobtained approval from shareholders at the general meeting. Accordingly, the Company will implement the share consolidation effective as of
October 1, 2017 by consolidating 10 common shares of the Company into one common share.
The forecast of the consolidated results for the fiscal year ending March 31, 2018 excluding the impact of the scheduled share consolidation is asfollows:
 Net income per share for the fiscal year ending March 31, 2018: 7.81 yen

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, 2017
FY ending March 31, 2018

Yen
—
—

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

Yen
—
—

FY ending March 31, 2018 (forecast)Class C share
FY ended March 31, 2017
FY ending March 31, 2018

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

Yen
0.00

—

Yen
23,740.00

0.00—

23,740.00

23,740.00

Yen
0.00

—

Yen
60,000.00

Yen
60,000.00

Yen

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

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2018

 Table of contents for the attachment
1. Qualitative Information on Quarterly Results ...........................................................................................2(1) Explanation of operational results.........................................................................................................2(2) Explanation of financial situation .........................................................................................................3(3) Explanation of future forecast information including forecast of consolidated performance ...............3
2. Quarterly Consolidated Financial Statements
and Major Notes to Consolidated Financial Statements ...........................................................................4(1) Consolidated quarterly balance sheets ..................................................................................................4(2) Consolidated quarterly statements of income and consolidated quarterly statements ofcomprehensive income .........................................................................................................................6
Consolidated quarterly statements of income
Three-month period ended June 30, 2017........................................................................................6
Consolidated quarterly statements of comprehensive income
Three-month period ended June 30, 2017........................................................................................7(3) Notes on quarterly consolidated financial statements ...........................................................................8(Notes on going concern assumption) ..................................................................................................8(Notes on significant changes in shareholders’ equity) ........................................................................8(Segment information) ..........................................................................................................................8-1-

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2018

1. Qualitative Information on Quarterly Results(1) Explanation of operational results
During the three-month period of the consolidated accounting year under review, the Japanese economy
continued to recover gradually, supported by a recovery in corporate earnings and an improvement in theemployment environment. Meanwhile, the outlook for overseas economies remained unclear due to
growing geopolitical risk and the uncertain political situation in the U.S. and Europe.
Under these circumstances, the Unitika Group endeavored to realize the three Gs (Growth, Global, andGovernance) promoted under “G round 20—to The Next Stage”, its new medium-term management planannounced in May 2017. Consequently, the Group reported net sales of 31,382 million yen (up 0.3%
year-on-year), operating profit of 3,388 million yen (up 7.4% year-on-year), ordinary income of 3,078
million yen (up 88.0% year-on-year), and profit attributable to owners of parent of 2,470 million yen (up107.4% 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 of the packaging sector grew due to continuous strong sales for summer goods
in Japan and increased export volumes, mainly to Asia. In addition, the sales volume of EMBLEM HG, abarrier nylon film, grew steadily. In the industrial sector, demand for information terminal applications
increased and sales of high value-added products such as Uni Amid, a heat-resistant polyamide film, also
expanded.
In the Resin business, sales of U-Polymer, the Company’s original polyarylate resin, continued to berobust for information terminal applications overseas, although sales of general-purpose resins remainedsluggish. Furthermore, UNITIKA ADVANCE (THAILAND) CO., LTD., a joint-venture company
established in Thailand, began operations in June 2017.
In the Non-woven Fabrics business, sales of polyester spunbond fabrics grew steadily for agricultural,industrial material and daily product applications, but remained weak for some other applications. At
THAI UNITIKA SPUNBOND CO., LTD. (TUSCO), a subsidiary in Thailand, the No. 3 machine thatwas newly added to the production line began operating. Sales of cotton spunlace continued to be strongfor daily product applications, such as skin care goods, and the export volume also expanded.
The Polymers business saw profits decrease due to a rise in raw material prices. Consequently, it posted
operating profit of 2,628 million yen (down 1.3% year-on-year) on net sales of 14,172 million yen (up1.2% year-on-year).
[Advanced Materials]
In the Glass Fibers business, sales of products for construction applications continued to be robust in theindustrial material sector, while sales of IC cloth in the electronic materials sector were steady due to arecovery in demand for information terminal devices.
In the Glass Beads business, sales for road marking applications and reflective material applications wereslightly weak, while sales for industrial applications, such as fillers, continued to be strong.
In the Activated Carbon Fibers business, sales for our mainstay water purifier applications were steadyacross the board, although sales of faucet built-in water purifiers were slightly sluggish. Meanwhile, sales
for VOC removal and industrial filter applications continued to be robust.
Consequently, the Advanced Materials business posted operating profit of 365 million yen (up 33.5%
year-on-year) on net sales of 3,062 million yen (up 5.2% year-on-year).
[Fibers and Textiles]
In the Industrial Materials business, operating profit of the ultra-high-strength polyester filament yarnbusiness exceeded the Company’s initial plan due to steady sales of high value-added products for civilengineering applications. In the short-fiber polyester business, operating profit was better than the
Company’s initial plan, thanks to a rise in the sales of high value-added products.
In the Garments, Lifestyle Materials and Bedding business, sales of the uniform sector were steady,supported by mainly demand from corporate customers, although sales in the women’s clothing sector
were slightly weak. Overseas, demand for denim was on the rebound.
Consequently, the Fibers and Textiles business posted operating profit of 450 million yen (up 22.0% year
on year) on net sales of 13,121 million yen (down 3.4% year on year).

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Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2018

[Others]
The Others category posted an operating loss of 62 million yen (an operating loss of 146 million yen theprevious year) on net sales of 1,026 million yen (up 28.6% year-on-year).
(2) Explanation of financial situation
Total assets decreased by 14,965 million yen from the end of the previous consolidated year to 196,907
million yen, mainly due to a decline in cash and deposits. Liabilities decreased by 4,198 million yen fromthe end of the previous consolidated year to 162,409 million yen, mainly due to a fall in notes and accounts
payable-trade. Net assets decreased by 10,766 million yen from the end of the previous consolidated year
to 34,497 million yen. This was mainly due to a decline in capital surplus caused by the purchase andretirement of Class C shares.
(3) Explanation of future forecast information including forecast of consolidated performance
Regarding the revision of the consolidated performance forecast, please refer to Notice Regarding the
Revision of the Consolidated Performance Forecast we have announced today (August 7, 2017).

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Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2018

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

Q1 of FY ending March 2018
(June 30, 2017)37,03034,11625,704
4,833(89)
101,595

23,43432,463
26,817
3,938(86)
86,566

21,39366,496
15,901
103,791

23,71766,495
13,484
103,698

2,035
2,035

2,062
2,062

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

4,604
(23)
4,580
110,340
196,907

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2018

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

Q1 of FY ending March 2018
(June 30, 2017)

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

15,871
3,093
2,767
420
796
1,425
116
980
8,947
34,418103,132
4
11,20914,067
128,414
166,608

102,310
4
11,332
14,343
127,990
162,409100
28,40012,117(47)
40,572100
16,451
13,591(47)
30,095

480

552

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

3
6,415(3,238)(2,693)
1,039
3,362
34,497
196,907

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2018

(2) Consolidated quarterly statements of income and consolidated quarterly statements of comprehensive
income(Consolidated quarterly statements of income)(Three-month period ended June 30, 2017)(Unit: Millions of yen)Three-month period
ended June 30, 2016
(April 1, 2016 toJune 30, 2016)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using
equity method
Foreign exchange losses
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
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, 2017
(April 1, 2017 toJune 30, 2017)31,28923,356
7,932
4,778
3,153

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

5
41
73
184
305

15
39
35
172
263

539

357

0

2

1,084
196
1,820
1,637

212
572
3,078

61
61

131
131

91
101
33
225
1,473
118
115
234
1,239
47
1,191

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

—

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2018

(Consolidated quarterly statements of comprehensive income)(Three-month period ended June 30, 2017)(Unit: Millions of yen)Three-month period ended
June 30, 2016
(April 1, 2016 to June 30, 2016)

Three-month period ended
June 30, 2017
(April 1, 2017 to June 30, 2017)

Profit

1,239

2,479

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

51
40
(41)
6
93
149

71
(5)
(450)
85
(298)

Comprehensive income

1,388

2,180

1,380

2,240

8

(60)

Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests-7-—

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2018

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

Advanced Fibers &Materials Textiles

Total

Other
(Note 1)

Total

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

Net sales
Net sales to outside customers

14,003

2,911

13,57630,490798

31,289—31,289Inter-segment sales or transfers

2,197

210

230

2,638

282

2,921

(2,921)—

Total

16,2003,121

13,807

33,1291,080

34,210(2,921)

31,289

2,661

273

369

3,304

(146)

3,158

(4)

3,153

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

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Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2018

II. 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

Figure in quarterly
consolidated
Adjustment
statements of(Note 2)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 category, which includes design and construction expenses as well as improvement and maintenance expensesof plants, does not qualify as a reportable operating segment.
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.

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