Member of Financial Accounting Standards Foundation

Financial Report for Fiscal Year ended March 31, 2018 [Japanese GAAP] (Consolidated)
May 11, 2018
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 28, 2018
Expected date for submitting securities report: June 28, 2018
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 rounded down to nearest million yen.)

1. Consolidated performance for fiscal year ended March 31, 2018 (April 1, 2017 to March 31, 2018)(1) Consolidated business results(Percentages represent changes from same period in previous year.)Net sales

Profit attributable toowners of parent% Millions of
%
yen
(4.9)
8,081
9.4
53.7
7,389
6.6

Operating income

Ordinary income

Millions of% Millions of% Millions of
yen
yen
yen
FY ended March 31, 2018
128,388
1.7
11,658(7.0)
9,972
FY ended March 31, 2017
126,219(13.8)
12,53820.0
10,483(Note) Comprehensive income
FY ended March 31, 2018: 8,280 million yen [2.2%]
FY ended March 31, 2017: 8,103 million yen [14.7%]
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, 2018133.25
89.40
20.5
4.8
9.1
FY ended March 31, 2017110.82
57.47
19.3
4.9
9.9
(Reference) Equity in earnings/losses of affiliates
FY ended March 31, 2018: (54) million yen
FY ended March 31, 2017: 13 million yen(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. Net income per share and Diluted net income per share were calculated on the assumption that the relevant
share consolidation had been implemented at the beginning of the previous consolidated fiscal year.

(2) Consolidated financial situation
Total assets
Net assets
Capital adequacy ratio
Millions of yen
Millions of yen%
FY ended March 31, 2018
203,326
40,72918.3
FY ended March 31, 2017
211,872
45,264
19.7(Reference) Shareholders’ equity: FY ended March 31, 2018: 37,165 million yen
FY ended March 31, 2017: 41,841 million yen

Net assets per share
Yen
160.7558.00(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. Net assets per share were calculated on the assumption that the relevant share consolidation had been
implemented at the beginning of the previous consolidated fiscal year.

(3) Consolidated cash flows situation
Cash flows fromoperating activities

Cash flows frominvesting activities

Millions of yen
9,739
18,111

FY ended March 31, 2018
FY ended March 31, 2017

Cash flows fromfinancing activities

Millions of yen(3,231)(4,158)Millions of yen(17,207)(19,089)

Balance of cash andcash equivalents atperiod end
Millions of yen
26,16936,8902. Dividend payment
Annual dividend per share

FY ended March 31, 2017
FY ended March 31, 2018
FY ending March 31, 2019
(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, 2019 (April 1, 2018 to March
31, 2019)(Percentages represent changes from same period in previous year.)
Profit attributable
Net income
Operating income Ordinary income
to owners ofper share
parentNet sales

1st half of FY ending March 31,
2019
FY ending March 31, 2019

Millionsof yen%Millionsof yen%64,0001.5

5,200

131,500

2.4

11,500Millionsof yen%Millionsof yen%Yen(10.3)

4,500 (15.6)

3,400(28.5)

55.51

(1.4)

10,0007,000(13.4)

114.500.3* 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) 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 term (including treasury stock):
Fiscal year ended March 31, 2018: 57,752,343 sharesFiscal year ended March 31, 2017: 57,752,343 shares(ii) Number of treasury stocks at end of term
Fiscal year ended March 31, 2018: 91,653 sharesFiscal year ended March 31, 2017: 81,796 shares(iii) Average number of shares outstanding during the term
Fiscal year ended March 31, 2018: 57,668,251 sharesFiscal year ended March 31, 2017: 57,671,306 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.

(Reference) Summary of non-consolidated performanceNon-consolidated performance for fiscal year ended March 31, 2018 (April 1, 2017 to March 31, 2018)(1) Non-consolidated business results(Percentages represent changes from same period in previous year.)
FY ended March 31, 2018
FY ended March 31, 2017

Net sales
Millions of yen
81,112
79,040Operating income
Ordinary income
Net income% Millions of yen% Millions of yen% Millions of yen%
2.6
9,537 (2.9)
8,362
3.4
5,715 (27.2)
(7.9)
9,823
10.2
8,088
36.2
7,845
6.7

Net income per share
FY ended March 31, 2018
FY ended March 31, 2017

Yen
92.21
118.75

Diluted net income per share
Yen
63.22
61.02

(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. Net income per share and Diluted net income per share were calculated on the assumption that the relevant
share consolidation had been implemented at the beginning of the previous fiscal year.

(2) Non-consolidated financial situation
Total assets
Net assets
Capital adequacy ratio
Millions of yen
Millions of yen%
FY ended March 31, 2018
183,401
39,00721.3
FY ended March 31, 2017
192,061
46,236
24.1(Reference) Shareholders’ equity: FY ended March 31, 2018: 39,007 million yen
FY ended March 31, 2017: 46,236 million yen

Net assets per share
Yen
192.70134.21(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. Net assets per share were calculated on the assumption that the relevant share consolidation had been
implemented at the beginning of the previous fiscal year.

* The flash report of financial results is not subject to an audit by a certified public accountant or an
accounting firm.
* 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.

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, 2017
FY ended March 31, 2018——

FY ending March 31, 2019 (forecast)—Class B share
FY ended March 31, 2017
FY ended March 31, 2018

End of Q2

Yen

Yen

End of Q3

Yen
0.00
0.00

—
—

Yen

0

—

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, 2019 (forecast)

—

0

—

23,740.00

23,740.00

Class C share
FY ended March 31, 2017
FY ended March 31, 2018

—
—

—

—
—

Yen
60,000.00—

Yen
60,000.00—

FY ending March 31, 2019 (forecast)

—

—

—

—

—

Yen

Yen
0.00

Yen

Year end

Yen(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 ended March 31, 2018.

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2018

 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, 2018 and the fiscal year
ending March 31, 2019 ........................................................................................................................................ 5
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, 2016 to March 31, 2017) ..................................................................... 10(4) Consolidated statements of cash flow ................................................................................................................ 12(5) Notes on consolidated financial statements ....................................................................................................... 13(Notes on going concern assumption) ............................................................................................................... 13(Significant items that are the basis for preparation of consolidated financial statements) .............................. 13(Notes on significant changes in shareholders’ equity)..................................................................................... 13(Segment information) ...................................................................................................................................... 14(Per share information) ..................................................................................................................................... 17(Material subsequent events)............................................................................................................................. 17
4. Supplementary Materials ........................................................................................................................................ 18-1-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2018

1. Overview of Business Performance(1) Overview of business performance of the year
In the year ended March 31, 2018, the Japanese economy continued to recover gradually, supported by apickup in consumer spending against the backdrop of an improvement in corporate earnings and theemployment environment. Meanwhile, the outlook for overseas economies remained unclear due to concerns
about uncertainty caused by trade policy in Europe and the United States, impact of fluctuations in financial
markets, and lingering geopolitical risk.
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 128,388 million yen (up 1.7% year onyear), operating income of 11,658 million yen (down 7.0% year on year), ordinary income of 9,972 million
yen (down 4.9% year on year) and profit attributable to owners of parent of 8,081 million yen (up 9.4% year
on year) in this consolidated accounting year under review.
The following is an overview of the business results by segment.
[Polymers]
In the Films business, sales of the packaging sector were strong, supported by strong domestic sales ofseasonal products and expansion in demand for products related to convenience store goods and consumption
by inbound tourists to Japan. In addition, sales of high value-added products such as EMBLEM HG, a new
barrier nylon film, contributed to growth in sales. In overseas markets, P.T. EMBLEM ASIA (EMBLEM
ASIA), a subsidiary in Indonesia, saw its sales increase due to active markets in Asia. In the industrial sector,
sales grew steadily in the area of electric and electronics applications, supported by strong demand in thesemiconductor market. Furthermore, sales of high value-added products such as Uni-peel, a silicon-free moldrelease PET film, were also strong. Consequently, the Films business recorded a rise in sales and a fall in profit
due to the negative impact of rising raw material and fuel prices.
In the Resin business, both sales and profit of U-Polymer, the Company’s original polyarylate resin, expanded
greatly for information terminal applications and overseas automobile applications. In the nylon resins sector,
sales also grew steadily for automobile applications, but rising raw material and fuel prices had a huge
negative impact on profit. Meanwhile, sales of elitel, a thermoplastic saturated copolymeric polyester resin,and ARROWBASE, a range of environmentally friendly water-based polyolefin cationic emulsions, weresluggish due to weak demand for solar cell applications. Consequently, the Resin business reported an increasein sales and a decrease in profit.
In the Non-woven Fabrics business, sales of polyester spunbond fabrics grew steadily for agricultural andbuilding material applications, but remained weak for civil engineering application. THAI UNITIKASPUNBOND CO., LTD. (TUSCO), a subsidiary in Thailand, saw sales of existing products increase steadily
for civil engineering and carpet applications, since it consistently encouraged customers to adopt products
manufactured by its new machinery at the stage of design. Sales of cotton spunlace continued to be strong fordaily product applications, such as skin care goods. Its exports were also robust. As a result, the Polymers
business saw net sales increase from the previous year, but it recorded a fall in profit due to the posting ofdepreciation related to a huge capital expenditure.
Consequently, the Polymers business posted operating income of 9,401 million yen (down 6.3% year on year)
on net sales of 58,516 million yen (up 6.3% year on year).

-2-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2018

[Advanced Materials]
In the Glass Fibers business, the industrial materials sector saw demand for products for building and civilengineering applications remain stagnated, but sales for environment-related applications grew steadily. In theelectronic materials sector, sales of IC cloth, especially high-value-added ultra-thin ones, increased robustly,
supported by robust demand for information terminal and network applications. In the Glass Beads business,sales for industrial application, such as electronic components and automobile components, remained strong.
Sales for road marking applications also grew steadily. However, a rise in raw material and fuel prices affected
profitability.
In the Activated Carbon Fibers business, sales for water purifier application, a mainstay of this business,
especially faucet built-in water purifiers, were strong. Sales for VOC removal and industrial applications also
continued growing robustly.
Consequently, the Advanced Materials business posted operating income of 1,227 million yen (up 8.6% year
on year) on net sales of 12,536 million yen (up 3.7% year on year).
[Fibers and Textiles]
In the Industrial Materials business, the size of the business became smaller due to the implementation of
structural reform. However, the short-fiber polyester business maintained its sales at the same level as theprevious fiscal year, since it expanded sales of high value-added products, such as composite fibers. In theultra-high-strength polyester filament yarn business, demand for civil engineering applications remained weak,
but profit was in line with the Company’s initial plan, since sales of high value-added products increased.
In the Garments, Lifestyle Materials and Bedding business, sales in the uniform sector continued to be steady,especially for corporate customers. Sales of bedding goods were also strong due to a recovery of demand, but
sales in the women’s clothing and raw fiber sectors decreased since demand continued to be sluggish.
Overseas sales were strong due to a pickup in demand for denim.
Consequently, the Fibers and Textiles business posted operating income of 1,290 million yen (down 33.2%
year on year) on net sales of 53,612 million yen (down 3.5% year on year).
[Others]
The Others category posted an operating loss of 277 million yen (compared to an operating loss of 578 million
yen in the previous year) on net sales of 3,723 million yen (up 5.3% year on year).
(2) Overview of financial position
Total assets decreased by 8,546 million yen from the end of the previous consolidated year to 203,326 million
yen, mainly due to a decline in cash and deposits. Liabilities fell by 4,012 million yen from the end of theprevious consolidated year to 162,596 million yen, mainly due to a decrease in interest-bearing liabilities. Net
assets declined by 4,534 million yen from the end of the previous consolidated year to 40,729 million yen.
This was mainly due to a fall in capital surplus caused by the purchase and retirement of Class C shares.

-3-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2018(3) Overview of cash-flow
Cash and cash equivalents (hereinafter referred to as “net cash”) as of March 31, 2018 decreased by 10,721
million yen to 26,169 million yen.
(Net cash provided by [used in] operating activities)
Cash flows from operating activities increased by 9,739 million yen during the current consolidated fiscal
year (down 46.2% 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 3,231 million yen during the current consolidated fiscal
year (decreased by 4,158 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 17,207 million yen during the current consolidated fiscal
year (decreased by 19,089 million yen in the previous consolidated fiscal year), mainly due to the purchaseand retirement of Class C shares.
(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, 2018Year ended
March 31, 2017

Year ended
March 31, 2016

18.3

19.7

15.7

18.9

25.3

14.2

11.1

6.2

11.1

7.3

8.8

4.9

(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 will solidify the foundation and continue to implement growth measures to realize the threeGs (Growth, Global, and Governance) promoted under the “G” round 20—to The Next Stage, its medium-term
management plan launched in FY ended March 2018.
By steadily implementing the measures contemplated in the medium-term management plan, we forecast that
we can record net sales of 131,500 million yen, operating income of 11,500 million yen, ordinary income of
10,000 million yen and profit attributable to owners of parent of 7,000 million yen in the year ending March 31,
2019.

-4-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2018

(5) Basic policy for profit distribution and dividends for the fiscal year ended March 31, 2018 and the fiscal year
ending March 31, 2019
The Unitika Group considers profit distribution to its shareholders to be an important aspect of its business, but
management intends to cancel payment of dividends on common stock for the fiscal year ended March 31, 2018,giving due consideration to the business results and financial situation at the end of the fiscal year.
For the future, Unitika’s basic dividend policy is to conduct profit distribution to shareholders as appropriate to
the Company’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 forshareholders from a 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 and 23,740 yen per class B 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, 2018

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, 2017)
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, 2018)

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

26,39536,552
27,202
2,074
2,899
(84)
95,03911,34921,393920
66,496
121
3,508
103,791

10,93923,081
1,060
65,071346
1,155
101,654

2,035
2,035

2,139
2,139

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

2,840
8
285
18
139
1,220
(20)
4,492
108,286
203,326

Unitika Ltd. (3103) Financial Report for Fiscal Year ended 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
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, 2018)

17,506
3,438
2,756
117
1,167
1,451
1,670
152
980
8,954
38,19418,968
2,450
2,720
57
676
1,576
704
20
—
8,509
35,685

103,132
483
9,191
3,580
4
11,209810
128,414
166,608

100,081
674
9,551
3,580
4
12,218799
126,911
162,596100
28,40012,117(47)
40,572100
16,451
19,201(55)
35,698480
86,415(2,856)(2,779)
1,269

491
(2)
6,415
(2,793)(2,644)
1,467

3,422
45,264
211,872

3,564
40,729203,326

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2018

(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
Gain on valuation of interest rate swaps
Share of profit of entities accounted for using equity method
Reversal of provision for loss on anti-monopoly
Gain on bad debts recovered
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
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
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, 2016 to
March 31, 2017)
126,219
94,18932,02919,491
12,538Current consolidated
fiscal year
(April 1, 2017 toMarch 31, 2018)
128,388
96,51531,873
20,214
11,658

47
76
240
17
13
—
266
303
966

73
74
143
76
—
94
—
176
639

1,951
—
21
1,048
3,021
10,483

1,331
54
288
650
2,325
9,972

784
224
1,009

763
58
822

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

349
1,316
—
—
1,666
9,128
1,133
(117)
1,015
8,113
31
8,081

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2018

(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, 2016 to
March 31, 2017)
7,258

Current consolidated
fiscal year
(April 1, 2017 toMarch 31, 2018)
8,113

46
216
(41)
(206)

11
(11)
—
32

829
844
8,103

134
167
8,280

8,242

8,279

(138)

1

-9-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2018

(3) Consolidated statements of changes in net assets
Previous 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 of parent

7,389

7,389

Purchase of treasury shares

(0)

(0)

Disposal of treasury shares
Retirement of treasury shares
Purchase of shares of consolidated
subsidiaries

(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
availablefor-salesecurities
Balance at beginning of current period

433

Deferred
gains orlosses onhedges

Revaluation
reserve for
land

(203)

6,474

Total
NonForeign
Reaccumulated
controllingcurrency measurements
otherof definedinterests
translation
comprehenadjustment benefit plans
sive income(2,662)(3,608)

434

3,338

Total net
assets37,936

Changes of items during period
Dividends of surplus(997)

Profit attributable to owners of parent

7,389

Purchase of treasury shares(0)

Disposal of treasury shares
Retirement of treasury shares
Purchase of shares of consolidated
subsidiaries(0)

Reversal of revaluation reserve for land

(17)

(17)

—

Net changes of items other thanshareholders’ equity

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- 10 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2018

Current consolidated fiscal year (April 1, 2017 to March 31, 2018)(Unit: Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current period

Capital surplus
100

Retained earnings

28,400Total shareholders’equityTreasury shares

12,117(47)

40,572

Changes of items during period
Dividends of surplus

(997)

(997)

Profit attributable to owners ofparent

8,081

8,081

Purchase of treasury shares(11,957)(11,957)

00

0(11,949)

11,949—

Disposal of treasury shares
Retirement of treasury shares
Purchase of shares of consolidated
subsidiaries
Reversal of revaluation reserve forland
Net changes of items other thanshareholders’ equity
Total changes of items during
period—(11,949)

7,084

(8)

(4,873)

Balance at end of current period

100

16,451

19,201(55)

35,698

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

480

Deferred
gains orlosses onhedges8

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive income

Noncontrollinginterests

Total net
assets6,415(2,856)(2,779)

1,269

3,422

45,264

Changes of items during period
Dividends of surplus(997)

Profit attributable to owners ofparent

8,081

Purchase of treasury shares(11,957)

Disposal of treasury shares

0

Retirement of treasury shares—

Purchase of shares of consolidated
subsidiaries
Reversal of revaluation reserve forland
Net changes of items other thanshareholders’ equity

11

(11)

Total changes of items during
period11(11)

Balance at end of current period

491

(2)

62

134

197

141

339

—

62

134

197

141

(4,534)

6,415(2,793)(2,644)

1,467

3,564

40,729- 11 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2018

(4) Consolidated statements of cash flow
(Unit: Millions of yen)Previous consolidated
fiscal year
(April 1, 2016 to
March 31, 2017)
Cash flows from operating activities
Profit before income taxes
Depreciation
Business structure improvement expenses
Reversal of provision for loss on anti-monopoly
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
Loss (gain) on sales of investment securities
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
Payment related to anti-monopoly act
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
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
Purchase of treasury shares (or class)
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, 2017 toMarch 31, 2018)

8,052
4,526
1,223
—
(23)
539
(644)
(960)
980
192
1,951
862
(784)
(224)
1,659
1,829
2,298
(1,294)
20,183124(2,058)(137)—
18,111

9,128
4,868
1,316
(94)
(11)
1,157
(110)
(965)
—
125
1,331
349
(763)
(58)
(2,471)(1,534)
1,473(470)
13,270148(1,334)(1,236)(1,108)
9,739

(60)
(10)
345
(5,099)1,227(560)(4,158)

(85)
(10)
126
(3,535)
1,044(771)(3,231)

1,481
104,853(124,234)
(997)
—
(192)
(19,089)3(5,133)42,02336,890(982)
95(3,155)(997)(11,949)(216)(17,207)(22)(10,721)36,89026,169

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2018(5) Notes on consolidated financial statements(Notes on going concern assumption)
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 consolidation
stated below.

(Scope of consolidation)(1) Number of consolidated subsidiaries: 30 companies
Name of major consolidated subsidiaries:
NIPPON ESTER CO., LTD.
UNITIKA TRADING CO., LTD.
The number of consolidated subsidiaries decreased by one due to liquidation during the current
consolidated accounting year.
(2) Name of non-consolidated subsidiaries
Name of 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 thescope of consolidation.
(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 with theprovision of Article 13-4, Item 6 of the Articles of Incorporation of the Company (Call Options, the Consideration
for Which Is Money) and to retire all outstanding Class C shares in accordance with the provision of Article 178of the Companies Act subject to the said acquisition. The Company acquired and retired 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 transaction (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 ona per diem basis (14,958.9 yen) to the amount obtained by multiplying the 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- 13 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2018

(Segment information)
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 the descriptions in
Significant items that are the basis for preparation of consolidated financial statements.
Inter-segment earnings and transfers are based on prevailing market prices.

- 14 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2018

3. Information on the amount of net sales, profit or loss, assets and other items by reportable segment
Previous 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 reportable 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 the consolidated income statement.

- 15 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2018

Current consolidated fiscal year (April 1, 2017 to March 31, 2018)
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
58,516
12,536
53,612
124,665
3,723
128,388—
128,388
Inter-segment sales ortransfer
9,486
912
792
11,191
1,167
12,359(12,359)—
Total
68,003
13,44954,404
135,857
4,891
140,748(12,359)
128,388
Segment income (loss)
9,401
1,227
1,290
11,919(277)
11,642
16
11,658Segment assets
107,088
17,47846,287
170,855
8,767
179,623
23,702
203,326
Other items
Depreciation andamortization
3,451
367
490
4,309
13
4,323
544
4,868
Increase in property, plantand equipment andintangible assets
2,658
403
340
3,402
48
3,450
1,203
4,654
(Note) 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 details are as follows.
(1) Adjustment of 16 million yen for Segment income (loss) is attributable to the elimination of inter-segment transactions.
(2) Adjustment of 23,702 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 544 million yen for Depreciation and amortization is depreciation and amortization of common assets thatare not allocated to each reportable segment.
(4) Adjustment of 1,203 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 income statement.

- 16 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2018

(Per share information)
Previous consolidated fiscal year
(April 1, 2016 to March 31, 2017)

Current consolidated fiscal year
(April 1, 2017 to March 31, 2018)

Net assets per share

58.00 yen160.75 yen

Net income per share

110.82 yen

133.25 yen

Net income per share after
57.47 yen89.40 yenfull dilution(Note) 1. The basis for the calculation of net assets per share is as follows:
Previous consolidated
Current consolidated
fiscal year
fiscal year
(March 31, 2017)(March 31, 2018)
Total net assets (millions of yen)

45,26440,729Amounts deducted from the total net assets (millions of yen)

41,91931,460[of which amounts to be paid in for shares of class stock(millions of yen)](37,499)(27,499)

(997)

(397)

(3,422)(3,564)[of which preferred dividends (millions of yen)][of which non-controlling interests (millions of yen)]

Net assets at the end of the fiscal year attributable to
3,345
9,268
common stock (millions of yen)
Number of common stock at the end of the fiscal year used
57,67057,660for 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, 2016 to(April 1, 2017 toMarch 31, 2017)
March 31, 2018)
Net income per share
Net income attributable to owners of parent
7,389
8,081
(millions of yen)Amount not attributable to common stockholders
997
397(millions of yen)[of which preferred dividends (millions of yen)]

(997)

(397)

6,391

7,684

57,671

57,668997

397[of which preferred dividends (millions of yen)]

(997)

(397)

Increased number of common stock (thousand shares)

70,90332,732[of which preferred shares (thousand shares)](70,903)(32,732)

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

Outline of potential common shares that were not includedin the calculation of net income per share after full dilution
due to their anti-dilutive effect.

——(Note) The Company implemented a 1-for-10 share consolidation effective as of October 1, 2017 by consolidating 10 commonshares of the Company into one common share. Net assets per share, Net income per share, and Net income per shareafter full dilution were calculated on the assumption that the relevant share consolidation had been implemented at the
beginning of the previous consolidated fiscal year.

(Material subsequent events)
Not applicable.
- 17 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2018

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

FY ended March 2017
FY ended March 2018
FY ending March 2019
Comparison with prioryear

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

126,219
63,064
128,388
64,000131,500936
3,112

Ordinary
income12,538
5,797
11,6585,200
11,500(597)(158)

10,483
5,334
9,972
4,500
10,000(834)
28(Millions of yen)
Net income
attributable toowners of parent
7,389
4,752
8,081
3,400
7,000
(1,352)(1,081)(2) Segment information (consolidated)(Millions of yen)

Net sales to outside
customers
FY ended
Component ratio (%)
March 2017
Operating income
Component ratio (%)
Net sales to outside
customers
Results for
FY ended
Component ratio (%)
current fiscal
March 2018
year
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 2019
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

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)

—

58,516

12,536

53,612

3,723

—

45.6
9,401
80.6

9.8
1,227
10.5

41.8
1,290
11.1

2.9
(277)
(2.4)

—

3,459

447

(1,923)

187

—

2,169

6.3

3.7

(3.5)

5.3

—

1.7

(634)

97

(642)

301

(6.3)

8.6

(33.2)

—

—

(7.0)

61,50013,00055,0002,000—

131,500

46.8
9,100
79.1

9.9
1,300
11.3

41.8
1,400
12.2

1.5
(300)
(2.6)

—

2,984

464

1,388

(1,723)

—

3,112

5.1

3.7

2.6

(46.3)

—

2.4

(301)

73

110

(23)

(3.2)

5.9

8.5

Other

126,219100.0
12,538
100.0

17
0.1

128,388
100.0
11,658
100.0

16
0.1

(1)

(880)

100.0
11,500
100.0

0
0.0

—

(16)

(158)

(100.0)(1.4)(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)
5,968
4,555
3,203
126,334
4,825
4,292
3,142
109,327
4,129
4,448
3,274
105,252

Capitalexpenditures

FY ended March 2016 Full year
FY ended March 2017 Full year
FY ended March 2018 Full year

Financialaccountbalance(2,212)(1,826)(1,182)

Number ofpermanent
employees(persons)
3,906
3,671
3,677

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

FY ended March 2016 Full year
FY ended March 2017 Full year
FY ended March 2018 Full year

Cash flow fromoperating activities

Cash flow frominvestment activities

11,661
18,111
9,739

4,124(4,158)(3,231)- 18 -Cash and cash
equivalents at end of
fiscal year
(5,010)42,023(19,089)
36,890(17,207)
26,169Cash flow fromfinancing activities