Member of Financial Accounting Standards Foundation

Financial Results for the 1st Quarter of the Fiscal Year Ending March 31, 2021
August 6, 2020
Listed stock exchanges: Tokyo Stock Exchange
Company name: Unitika Ltd.
Code number: 3103
URL: https://www.unitika.co.jp/e/home.htm
Representative: Shuji Ueno, President and Chief Executive Officer
Contact: Masanori Onishi, General Manager of Accounting Department
TEL: +81-6-6281-5721
Expected submission of quarterly report: August 12, 2020
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, 2021 (April 1, 2020 to June 30, 2020)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales

Q1 of FY ending March 31, 2021
Q1 of FY ended March 31, 2020

(Note) Comprehensive income

Millions of yen
27,29030,311

Operating profit%(10.0)(5.4)

Millions of yen
1,566
1,464

Ordinary profit%
7.0(43.9)

Millions of yen
903
1,091

Quarterly profit
attributable to owners ofparent%(17.3)(56.8)

Millions of yen
315(2,044)%——

Q1 of FY ending March 31, 2021: 512 million yen [—%]
Q1 of FY ended March 31, 2020: (1,853) million yen [—%]
Quarterly profit per share

Diluted quarterly profit per share

Yen
4.09
(36.85)

Q1 of FY ending March 31, 2021
Q1 of FY ended March 31, 2020

Yen
2.16
—

(2) Consolidated financial situation
Total assets
Q1 of FY ending March 31, 2021
FY ended March 31, 2020

(Reference) Shareholders’ equity

Net assets

Millions of yen
190,553
193,726

Capital adequacy ratio

Millions of yen
39,12438,933

%
18.7
18.3

1st quarter of fiscal year ending March 31, 2021: 35,694 million yen
Fiscal year ended March 31, 2020: 35,481 million yen

2. Dividend payment
Annual dividend per share
End of Q1

End of Q2

FY ended March 31, 2020
FY ending March 31, 2021




FY ending March 31, 2021 (forecast)(Note) Revision of the latest dividend forecast: None

End of Q3
Yen
0.00

Yen



Year end
Yen




Total
Yen
0.00



Yen
0.00


(Note) The abovementioned Dividend payment refers to dividends paid to the holders of common stock. The Company will announce its dividend
forecast for the fiscal year ending March 31, 2021 immediately after the calculation of the forecast of operational results becomes possible. For detailsof dividend payment to the holders of class shares (unlisted), the rights of which are different from those of common stock, please refer to Dividend
payment to the holders of class shares mentioned below.

3. Forecast of consolidated performance for fiscal year ending March 31, 2021 (April 1, 2020 to March 31, 2021)
The Company has left the forecast of consolidated performance for the fiscal year ending March 31, 2021 as undetermined, since it is difficult for its
management team to reasonably estimate the impact of the spread of the COVID-19 outbreak on the Company’s business activities and operational
results at the present moment. The Company will announce the forecast immediately after the calculation of the forecast of operational results
becomes possible.

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: One (company name) COSOF Co., 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, 2021: 57,752,343 sharesFiscal year ended March 31, 2020: 57,752,343 shares Number of treasury shares at end of term
1st quarter of the fiscal year ending March 31, 2021: 94,402 sharesFiscal year ended March 31, 2020: 94,343 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
1st quarter of the fiscal year ending March 31, 2021: 57,657,967 shares
1st quarter of the fiscal year ended March 31, 2020: 57,658,526 shares* This brief report of quarterly financial statements is not subject to audit procedures by a certified public accountant or an
independent auditor.
* Explanation on appropriate use of forecasts of performance and other special items
The forward-looking statements in this document concerning forecasting of performance etc. are based on currently available information andassumptions considered by the Company to be reasonable. Such statements are neither promises nor guarantees of future performance. The actual
performance may be significantly different from forecasts due to various factors. Concerning assumptions used as a basis for forecasting businessperformance and precautionary statements when using the forecast of performance, please refer to 1. Qualitative Information on Quarterly Results(3) Explanation of future forecast information including forecast of consolidated performance on page 3 of the attachment.

Member of Financial Accounting Standards Foundation

Dividend payment to the holders of class shares
The breakdown of dividends per share related to class shares, the rights of which are different from those of common stock, is asfollows:
Annual dividends
End of Q1
Class A share
FY ended March 31, 2020
FY ending March 31, 2021

Yen
—
—

FY ending March 31, 2021 (forecast)Class B share
FY ended March 31, 2020
FY ending March 31, 2021
FY ending March 31, 2021 (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, 2021

 Table of contents for the attachment
1. Qualitative Information on Quarterly Results ........................................................................................... 2(1) Explanation of operational results......................................................................................................... 2(2) Explanation of financial position .......................................................................................................... 3(3) Explanation of future forecast information including forecast of consolidated performance ...............3
2. Quarterly Consolidated Financial Statements and Main Notes ................................................................. 4(1) Quarterly consolidated balance sheet .................................................................................................... 4(2) Quarterly consolidated statements of income and quarterly consolidated statements ofcomprehensive income ......................................................................................................................... 6
Quarterly consolidated statements of income
Three-month period ended June 30, 2020........................................................................................ 6
Quarterly consolidated statements of comprehensive income
Three-month period ended June 30, 2020........................................................................................ 7(3) Notes on quarterly consolidated financial statements ........................................................................... 8(Notes on assumption of going concern) .............................................................................................. 8(Notes on a significant change in shareholders’ equity) ....................................................................... 8(Additional information)....................................................................................................................... 8(Segment information, etc.) .................................................................................................................. 9(Material subsequent events) ................................................................................................................ 9-1-

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2021

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 entered intoa recession because of a sharp decline in production and sales in a wide variety of industries, including
automobiles, the evaporation of demand from foreign visitors to Japan, and a fall in demand on the
backdrop of self-restraint concerning nonessential outings due to the spread of the COVID-19 outbreak.
Meanwhile, the global economy evidently faced a downturn in economic activity due to the impact of
the new coronavirus pandemic. In addition, nobody was able to predict when COVID-19 will be fully
under control. Just like the Japanese economy, the global economic cycle also entered a contraction
phase, since concerns grew over further expansion of the pandemic and its lingering negative impact.
Under these circumstances, the Unitika Group has been endeavoring to realize the building of strong
business portfolios, promotion of global business development, and a change in business culture andmind-set, the Group’s basic policies that place the strengthening of the foundation for a growth phase at
the highest priority under G-STEP30, the 1st, a new three-year medium-term management planannounced in May 2020.
Consequently, the Group reported net sales of 27,290 million yen (down 10.0% year on year), operating
profit of 1,566 million yen (up 7.0% year on year), ordinary profit of 903 million yen (down 17.3% year
on year), and profit attributable to owners of parent of 315 million yen (versus loss attributable toowners of parent of 2,044 million yen in the previous year) in the consolidated fiscal year under review.
Here is an overview of the business results by segment.
From the first quarter of the current fiscal year, the Company has changed its reportable segmentclassification. For a year-on-year comparison of operational results mentioned below, the change
applies retrospectively to the results for the previous fiscal year. For details, please refer to “2. Quarterly
Consolidated Financial Statements and Main Notes (3) Notes on quarterly consolidated financial
statements (Segment information, etc.).”[Polymers]
The Polymers business saw sales decrease in automotive applications, etc. due to the spread of the
COVID-19 outbreak.
In the Films business, the packaging sector saw demand related to foreign visitors to Japan, such asconfectionery souvenir applications, remain weak. However, demand grew steadily in food and liquid
detergent refill applications, supported by demand from people staying at home due to self-restraint
concerning nonessential outings, telecommuting, and the suspension of classes. P.T.EMBLEM ASIA, asubsidiary in Indonesia, also performed solidly. Furthermore, sales of high-value-added products, suchas EMBLEM HG, a barrier nylon film, continued to grow robustly in Japan and overseas. In theindustrial sector, demand was, in general, sluggish in automotive applications, etc. However, sales ofhigh-value-added products, such as Uni-peel, a silicon-free mold release PET film, increased steadily.
In the Plastics business, sales of nylon resins were poor due to a fall in demand caused by the decline ofproduction in automotive, electrical and electronics, and machinery applications and sluggish markets.
Furthermore, sales of U-Polymer, a polyarylate resin, faced an uphill battle due to stagnant demand for
information terminal equipment applications. Sales of raw materials for other functional resins werealso sluggish.
Consequently, the Polymers business posted operating profit of 1,364 million yen (down 18.0% year onyear) on net sales of 10,123 million yen (down 14.4% year on year).
[Advanced Materials]
The Advanced Materials business saw sales of materials for medical gowns and sanitary goods increase
due to the spread of COVID-19 outbreak, but sales for many applications, chiefly the automotive, andbuilding and civil engineering fields, stagnated.
In the Activated Carbon Fibers business, sales for automotive applications decreased in addition to a fallin overseas sales. Furthermore, sales for water purifier applications, mainly for housing, also
diminished.
In the Glass Fibers business, the industrial materials sector saw sales of transparent incombustible
sheets grow steadily, but sales of products for building and civil engineering, environment-related, andautomotive applications were weak. In the electronic materials sector, sales of IC cloth for information
terminal equipment applications stagnated, but sales of products for personal computer andsemiconductor applications grew robustly due to the increase in telecommuting. Sales ofhigh-value-added products, such as super-thin products and materials with low thermal expansion, werealso strong.
-2-Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2021

In the Glass Beads business, sales of products for road applications decreased due to the suspension andpostponement of road construction projects. Sales of products for industrial applications, mainly
automotive applications, were sluggish. Furthermore, demand for products for reflective material
applications also remained weak.
In the Non-woven Fabrics business, sales of spunbond non-woven fabrics for building and automotive
applications were sluggish, including fabrics produced by THAI UNITIKA SPUNBOND CO., LTD.
(TUSCO), a subsidiary in Thailand, while sales for daily product applications increased steadily due toa rise in demand for medical gowns, etc. Meanwhile, sales of spunlace non-woven fabrics for medical
gown and disinfectant sheet applications grew strongly, making up for a decrease in sales for skin-caregoods applications.
In the Industrial Materials business, sales of polyester staple fibers for building material, automotive,and daily product applications were weak, despite steady sales for sanitary material applications. In
addition, sales of ultra-high-strength polyester filament yarns were sluggish for building and civilengineering applications.
Consequently, the Advanced Materials business posted operating profit of 189 million yen (versus an
operating loss of 43 million yen in the previous year) on net sales of 7,495 million yen (down 9.1% year
on year).
[Industrial Fibers & Textiles]
In the Garments, Lifestyle Materials and Bedding business, sales were very weak in each sector,
including women’s clothing, due to the spread of the COVID-19 outbreak. Sales in the uniform sector, amainstay of this business, also stagnated, but demand was strong for medical gown and protective
clothing applications. Furthermore, sales of denim for overseas remained poor.
Consequently, the Industrial Fibers & Textiles business posted operating profit of 82 million yen (versus
an operating loss of 30 million yen in the previous year) on net sales of 9,663 million yen (down 4.6%
year on year).
[Others]
The Others category posted an operating loss of 10 million yen (versus an operating loss of 121 million
yen in the previous year) on net sales of 8 million yen (down 92.1% year on year).
(2) Explanation of financial position
Total assets decreased by 3,172 million yen from the end of the previous consolidated year to 190,553
million yen, mainly due to decreases in cash and deposits and notes and accounts receivable-trade.
Liabilities fell by 3,363 million yen from the end of the previous consolidated year to 151,429 million
yen. This was primarily due to a decline in notes and accounts payable-trade. Net assets increased by
191 million yen from the end of the previous consolidated year to 39,124 million yen. This was mainly
due to a rise in accumulated other comprehensive income.
(3) Explanation of future forecast information including forecast of consolidated performance
The Company has left the forecast of consolidated performance for the fiscal year ending March 31,
2021 as undetermined, since it is difficult for its management team to reasonably estimate the impact of
the spread of the COVID-19 pandemic on the Company’s business activities and performance at thepresent moment. The Company will announce the forecast immediately after calculation of the forecastof operational results becomes possible.

-3-Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2021

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly consolidated balance sheet
Previous consolidated
fiscal year
(March 31, 2020)
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-(Unit: Millions of yen)
Q1 of current consolidated fiscal
year ending March 31, 2021
(June 30, 2020)

18,86030,95329,4982,961(48)
82,225

17,61828,38130,2842,916(46)
79,155

21,54365,191
18,711
105,447

21,40565,085
18,950105,440

1,756
1,756

1,749
1,749

4,380
(84)
4,296
111,500
193,726

4,274
(64)
4,209
111,398
190,553

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2021

(Unit: Millions of yen)
Q1 of current consolidated fiscal
year ending March 31, 2021
(June 30, 2020)

Previous consolidated
fiscal year
(March 31, 2020)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
A Product repair reserve fund
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for loss on litigation
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets-5-

14,922
2,288
2,675
284
1,710
42
9,313
31,237

12,376
2,336
2,660
210
946
42
9,769
28,342

94,631
2,566
14,333
12,024
123,554
154,792

93,8952,592
14,395
12,204
123,086
151,429100
13,21821,559(56)
34,821

100
13,21821,554(56)
34,816

361

400

(11)
6,412
(3,521)(2,581)(16)
6,412(3,440)(2,477)

660

878

3,451
38,933
193,726

3,429
39,124
190,553

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2021

(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive
income(Quarterly consolidated statements of income)(Three-month period ended June 30, 2020)(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
Rental 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
Loss on valuation of investment securities
Provision for loss on litigation
Other
Total extraordinary losses
Profit (loss) before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

Three-month period
Three-month period
ended June 30, 2019
ended June 30, 2020
(April 1, 2019 to June 30, 2019) (April 1, 2020 to June 30, 2020)
30,311
27,29023,42920,559
6,882
6,731
5,417
5,164
1,464
1,566

-6-

32
37
31
145
247

14
40
21
134
211

299

290

1

18

213
106
620
1,091

463
102
875
903

—
—

79
79

225
42
2,500
—
2,768
(1,677)97278
375(2,052)(8)(2,044)

253
24
26
6
310
672
131
234
366
305
(10)
315

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2021

(Quarterly consolidated statements of comprehensive income)(Three-month period ended June 30, 2020)(Unit: Millions of yen)

Profit (loss)
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests

Three-month period
Three-month period
ended June 30, 2019
ended June 30, 2020
(April 1, 2019 to June 30, 2019) (April 1, 2020 to June 30, 2020)(2,052)
305

-7-

(28)

38

(49)
180

(4)
69

97

103

199
(1,853)206
512(1,846)

534

(6)

(21)

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2021

(3) Notes on quarterly consolidated financial statements(Notes on assumption of going concern)
Not applicable(Notes on a significant change in shareholders’ equity)
Not applicable(Additional information)
The spread of the COVID-19 outbreak has had a pervasive impact on economic and corporate activities.
In addition, it is quite difficult to predict the future development of the outbreak and the timing of its
successful containment. Thus, based on information available from external sources, the Unitika Groupmade accounting estimates on impairment of non-current assets and recoverability of deferred tax assets
etc. on the assumption that the Group business will continue to be affected by COVID-19 for a certain
period in the fiscal year ending March 31, 2021.
The assumption used for the said estimates has not significantly changed from the one that the Groupdescribed in the Securities Report for the previous consolidated fiscal year.
As there is a high level of uncertainty with this incident, the Group may incur losses in the future if the
impact lingers on.

-8-Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2021

(Segment information, etc.)[Segment information]
I. Three-month period ended June 30, 2019 (April 1, 2019 to June 30, 2019)
1. Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment
Polymers

Industrial
Advanced
Fibers &Materials
Textiles

Total

Other
(Note 1)

Total

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

Net sales
Net sales to outside customers

11,823

8,248

10,12730,199112

30,311—30,311

Inter-segment sales or transfer

1,949

1,027

135

3,113

18

3,131

(3,131)—

Total

13,773

9,276

10,26233,312130

33,443(3,131)30,311

1,663

(43)

(30)

1,589

(121)

1,468

(3)

1,464

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

II. Three-month period ended June 30, 2020 (April 1, 2020 to June 30, 2020)
1. Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment
Polymers

Industrial
Advanced
Fibers &Materials
Textiles

Total

Other
(Note 1)

Total

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

Net sales
Net sales to outside customers

10,123

7,495

9,663

27,282

8

27,290—27,290Inter-segment sales or transfer

2,060

1,143

50

3,255

—

3,255

(3,255)—

Total

12,184

8,639

9,714

30,537

8

30,546(3,255)27,290

1,364

189

82

1,636

(10)

1,626

(59)

1,566

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

2. Matters concerning the revision of reportable segments
From the first quarter of the current fiscal year, the Company has changed its organizational
management system and has reviewed the Group’s management classification to promote its new
medium-term management plan. Accordingly, it has changed its reportable segment classification
to “Polymers,” “Advanced Materials,” and “Industrial Fibers & Textiles” from “Polymers,”“Advanced Materials,” and “Fibers & Textiles.”For your information, segment information for the three-month period ended June 30, 2019 (April
1, 2019 to June 30, 2019) was prepared in accordance with the new reportable segmentclassification.
(Material subsequent events)
Concerning a lawsuit filed by citizens of Toyohashi City, Aichi Prefecture (the “City”) who claimed that
Unitika’s sale of land for industrial use to a third party was a breach of the land transfer contract—theland was transferred by the City to the Company in 1951—and requested the mayor of the City to
pursue damages against the Company (the Company participated in the lawsuit as an assisting
intervener), the Supreme Court 3rd Petty Bench dismissed the Company’s final appeal and petition for
acceptance of final appeal and decided not to accept the petition as the final appellate court on July 21,
2020.

-9-