Member of Financial Accounting Standards Foundation

Financial Results for the 1st Quarter of the Fiscal Year Ending March 31, 2023
August 5, 2022
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: Masumi Fujimoto, General Manager of Accounting Department
TEL: +81-6-6281-5721
Expected submission of quarterly report: August 10, 2022
Expected commencement date for paying dividend: –Preparation of supplementary explanation documents for quarterly financial results: None
Holding of an analyst meeting for quarterly financial results: None
(Figures rounded down to nearest million yen.)
1. Consolidated performance for 1st quarter of fiscal year ending March 31, 2023 (April 1, 2022 to June 30, 2022)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales

Operating profit

Quarterly profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Q1 of FY ending March 31, 2023

29,5995.5

987(53.2)

2,806

57.5

2,040

62.0

Q1 of FY ended March 31, 2022

28,057

－

2,109

34.6

1,781

97.2

1,259

298.6

Q1 of FY ending March 31, 2023: 1,410 million yen [ (39.2%)]
Q1 of FY ended March 31, 2022: 2,317 million yen [ 352.5%](Note) Comprehensive income

Quarterly profit per share

Diluted quarterly profit per share
Yen

Yen

Q1 of FY ending March 31, 2023

34.09

16.36

Q1 of FY ended March 31, 2022

20.45

10.56

(2) Consolidated financial situation
Total assets

Net assets

Millions of yen

Millions of yen%

192,874

44,17822.0

191,399

43,071

21.6

Q1 of FY ending March 31, 2023
FY ended March 31, 2022

(Reference) Shareholders’ equity

Capital adequacy ratio

1st quarter of fiscal year ending March 31, 2023: 42,413 million yen
Fiscal year ended March 31, 2022: 41,296 million yen

2. Dividend payment
Annual dividend per share
End of Q1

End of Q2Yen

FY ended March 31, 2022

FY ending March 31, 2023

FY ending March 31, 2023 (forecast)(Note) Revision of the latest dividend forecast: None

End of Q3

Year end

Total

Yen
0.00

Yen


Yen
0.00

Yen
0.00

0.00



0.00

0.00

(Note) The above-mentioned Dividend payment refers to dividends paid to the holders of common stock. For details of dividend payment to the holdersof 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, 2023 (April 1, 2022 to March 31, 2023)(Percentages represent changes from same period in previous year.)Net sales
1st half of FY ending March
31, 2023 (cumulative)
FY ending March 31, 2023

Operating profit

Millions of yen%

60,000126,000

Millions of yen

Profit attributable toowners of parent

Ordinary profit%

Yen(48.7)

700 (68.4)

9.51(48.4)

1,500 (32.5)

20.77

%

Millions of yen%

8.1

2,100 (38.1)

1,500

9.8

5,500

3,300

(Note) Revision of the latest forecasts of operational results: None

(8.4)

Profit per share

Millions of yen

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) Unitika Plant Engineering Co., Ltd.
(2) Adoption of special accounting methods for preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
 Changes in accounting policies due to revisions of accounting standards: Yes
 Changes of accounting policies other than the above: None
 Changes in accounting estimates: None Retrospective restatement: None
(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, 2023: 57,752,343 sharesFiscal year ended March 31, 2022: 57,752,343 shares Number of treasury shares at end of term
1st quarter of the fiscal year ending March 31, 2023: 95,827 sharesFiscal year ended March 31, 2022: 95,761 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
1st quarter of the fiscal year ending March 31, 2023: 57,656,564 shares
1st quarter of the fiscal year ended March 31, 2022: 57,657,096 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, 2022
FY ending March 31, 2023

Yen
—
—

FY ending March 31, 2023 (forecast)Class B share
FY ended March 31, 2022
FY ending March 31, 2023
FY ending March 31, 2023 (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, 2023

 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 sheets ......................................................................................................... 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, 2022 .............................................................................................. 6
Quarterly consolidated statements of comprehensive income
Three-month period ended June 30, 2022 .............................................................................................. 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(Changes in accounting policies)................................................................................................................. 8(Segment information, etc.) ......................................................................................................................... 8-1-

Unitika Ltd. (3103)

Financial Results for 1st Quarter of Fiscal Year Ending March 31, 2023

1. Qualitative Information on Quarterly Results(1) Explanation of operational results
During the first quarter of the consolidated fiscal year under review (April 1, 2022 to June 30, 2022), looking at theJapanese economy, manufacturing industries lost momentum because of a rise in production costs due to continuing
high raw material prices and a weakening yen and disrupted supply chains caused by the lockdown in Shanghai,
China, while non-manufacturing industries, mainly service industries, began to recover after the semi-emergency
coronavirus measures were cancelled. However, the economic outlook turned uncertain since there were risingconcerns that a manifestation of geopolitical risk and price increases following a hike in resource prices and a weaker
yen were likely to put downward pressure on the domestic economy.
Under these circumstances, the Unitika Group has been endeavoring to realize the building of strong businessportfolios, promotion of global business development, and a change in business culture and mind-set—the Group’s
basic policies under G-STEP30, the 1st, a medium-term management plan announced in May 2020 that is in the
final year.
In the first quarter of the consolidated fiscal year under review, the Group reported net sales of 29,599 million yen(up 5.5% year on year), supported by an increase in demand that recovered from the COVID-19 pandemic. On theother hand, operating profit decreased to 987 million yen (down 53.2% year on year) since the Company was notable to absorb the impact of production cost increases caused by continuing high raw material and fuel prices and aweak yen, despite its efforts, including price hikes and cost reduction.
Furthermore, ordinary profit grew to 2,806 million yen (up 57.5% year on year) and profit attributable to owners ofparent rose to 2,040 million yen (up 62.0% year on year) since the Company posted a foreign-exchange valuation
gain of assets denominated in foreign currencies due to a rise in the U.S. dollar against the yen (the yen continuinga downward trend).
Here is an overview of the business results by segment.
[Polymers Segment]
The Polymers Segment had tough times since both soaring natural resources prices and the depreciation of the yen
drove up costs greatly.
The Films business suffered negative impacts of rising raw material prices. Demand remained robust both in the
packaging and industrial sectors. In the packaging sector, sales of high-value-added products, such as “EMBLEMHG,” a barrier nylon film, and environmentally friendly chemically recycled nylon films, increased strongly. In theindustrial sector, sales of high-value-added products, such as “UNIPEEL,” a silicon-free release PET film, expanded.
In general, sales were steady, but the impact of a rise in raw material and fuel prices was huge. Accordingly, theFilms business saw net sales increase but profit decrease.
The Plastics business had an uphill battle since raw material and fuel prices rose, supply chains were disrupted in
the automobile industry, and exports to China decreased due to the COVID-19 lockdown. Although the businessstrove to minimize the impact of soaring raw material and fuel prices by revising sales prices, the efforts had alimited effect on profitability. Accordingly, the Plastics business saw net sales grow and profit decline.
Consequently, the Polymers segment posted operating profit of 1,356 million yen (down 38.3% year on year) on net
sales of 13,089 million yen (up 4.7% year on year).
[Performance Materials Segment]
The Performance Materials Segment saw sales recover since demand for construction and civil engineering
applications picked up. Furthermore, as demand remained brisk in the electronic material sector, sales of high-valueadded products grew steadily.
In the Activated Carbon Fibers business, sales for automobile applications suffered the negative impact of the
lockdown in China and production reduction, but demand for mainstay water purifier applications continued to bestrong.
In the Glass Fibers business, in the industrial materials sector, sales for building and civil engineering applications,such as incombustible tents, recovered. In the electronic materials sector, sales of IC cloth, mainly high-value-added
products, including super-thin products and materials with low thermal expansion, expanded.
In the Glass Beads business, sales for road applications and reflective material applications were sluggish. Althoughsales for industrial applications were steady, the business suffered soaring energy prices significantly.
In the Non-woven Fabrics business, sales for skin care applications continued to be sluggish from the previous year
since the effects of self-restraint in going out still remained. The decline in automotive production affected sales forautomotive applications. Although sales for agriculture and building applications partially recovered, soaring raw
material and fuel prices weighed heavily on profitability.
In the Industrial fibers business, sales for building and civil engineering applications picked up, and among highvalue-added products, nylon hollow-fiber membranes sold steadily. However, sales for automobile applications were
weak; profitability was greatly affected by soaring raw material and fuel prices.
Consequently, the Performance Materials segment posted operating profit of 142 million yen (up 73.5% year onyear) on net sales of 8,937 million yen (up 5.8% year on year).

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Unitika Ltd. (3103)

Financial Results for 1st Quarter of Fiscal Year Ending March 31, 2023

[Fibers and Textiles Segment]
The Garments, Lifestyle Materials and Bedding business had difficulty in maintaining profitability because of adelay in passing a steep rise in production costs, which were caused by soaring raw materials and fuel prices,
processing charges and logistics costs, as well as the yen’s depreciation, on to sales prices. Although sales in theuniform sector, a mainstay of this business, picked up to some extent, sales in bedding and sport clothing sectors
continued to be weak.
Consequently, the Fibers & Textiles segment posted an operating loss of 511 million yen (versus an operating lossof 165 million yen in the previous year) on net sales of 7,554 million yen (up 6.5% year on year).
[Others]
The Others category posted an operating loss of 8 million yen (versus an operating loss of 1 million yen in theprevious year) on net sales of 18 million yen (up 25.3% year on year).
(2) Explanation of financial position
Total assets increased by 1,475 million yen from the end of the previous consolidated year to 192,874 million yen
mainly due to a rise in inventories and property, plant and equipment despite a decrease in cash and deposits.
Liabilities rose by 367 million yen from the end of the previous consolidated year to 148,695 million yen. This wasprimarily due to an increase in notes and accounts payable-trade despite a decline in interest-bearing debt. Net assets
grew by 1,107 million yen from the end of the previous consolidated year to 44,178 million yen. This was mainly
due to a rise in retained earnings caused by the posting of profit attributable to owners of parent.
(3) Explanation of future forecast information including forecast of consolidated performance
The Company did not revise its forecast of consolidated performance for both the first half and full fiscal year ending
March 31, 2023, which the Group announced via the Brief Report of Financial Statements for the Fiscal Year Ended
March 31, 2022 released on May 13, 2022.

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Unitika Ltd. (3103)

Financial Results for 1st Quarter of Fiscal Year Ending March 31, 2023

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly consolidated balance sheets

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade, andcontract assets
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

Previous consolidated
fiscal year
(March 31, 2022)-4-(Unit: Millions of yen)
Q1 of current consolidated fiscal
year ending March 2023
(June 30, 2022)

18,985

16,19329,49530,44429,3983,134(87)
80,926

31,3363,121(87)
81,007

19,26962,584
22,274104,128

19,571
62,674
23,422
105,667

2,238
2,238

2,247
2,247

4,210
(104)
4,106
110,472
191,399

4,065
(113)
3,951
111,866
192,874

Unitika Ltd. (3103)

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
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

Financial Results for 1st Quarter of Fiscal Year Ending March 31, 2023

(Unit: Millions of yen)
Q1 of current consolidated fiscal
year ending March 2023
(June 30, 2022)

Previous consolidated
fiscal year
(March 31, 2022)-5-

16,4502,065
91,647
598
1,742
35
9,228
121,768

17,762
2,075
90,995
288
897
35
9,655
121,711177
14,62811,75326,559148,328

166
14,792
12,02526,984
148,695

100
12,301
27,597(57)
39,942100
12,301
29,335(57)
41,680

435

404

(1)
6,313
(4,184)(1,208)1
6,313(4,840)(1,146)

1,354

732

1,774
43,071
191,399

1,765
44,178
192,874

Unitika Ltd. (3103)

Financial Results for 1st Quarter of Fiscal Year Ending March 31, 2023

(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income(Quarterly consolidated statements of income)(Three-month period ended June 30, 2022)(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
Foreign exchange gains
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
Insurance claim income
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on tax purpose reduction entry of noncurrent assets
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

Three-month period
Three-month period
ended June 30, 2021
ended June 30, 2022
(April 1, 2021 to June 30, 2021) (April 1, 2022 to June 30, 2022)
28,05729,59920,66423,007
7,393
6,592
5,284
5,604
2,109
987

-6-

16
26
—
21
157
222

14
28
1,956
18
172
2,190

281

260

2

3

153
113
550
1,781

－
107
371
2,806

—
545
545

0
—
0

143

218

398

—

20
562
1,764
165
336
501
1,262
3
1,259

3
221
2,584
193
350
544
2,040
(0)
2,040

Unitika Ltd. (3103)

Financial Results for 1st Quarter of Fiscal Year Ending March 31, 2023

(Quarterly consolidated statements of comprehensive income)(Three-month period ended June 30, 2022)

ProfitOther 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 to noncontrolling interests(Unit: Millions of yen)Three-month period
Three-month period
ended June 30, 2021
ended June 30, 2022
(April 1, 2021 to June 30, 2021) (April 1, 2022 to June 30, 2022)
1,262
2,040

-7-

(23)

(31)

8
1,001

3
(663)

67

61

1,055
2,317

(630)
1,410

2,206

1,419

111

(9)

Unitika Ltd. (3103)

Financial Results for 1st Quarter of Fiscal Year Ending March 31, 2023

(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(Changes in accounting policies)(Application of Accounting Standard for Fair Value Measurement, etc.)
Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31, June17, 2021; hereinafter “Fair Value Measurement Standard Implementation Guidance”) has been applied from the
beginning of the first quarter of the consolidated fiscal year ending March 31, 2023. In accordance with thetransitional treatment prescribed in Paragraph 27-2 of the Fair Value Measurement Standard Implementation
Guidance, the Company has decided to apply the new accounting policies set forth by the Fair Value
Measurement Standard Implementation Guidance into the future. These changes had no impact on the quarterly
consolidated financial statements.
(Segment information, etc.)[Segment information]
I. Three-month period ended June 30, 2021 (April 1, 2021 to June 30, 2021)
1. Information on net sales, income or loss by reportable segment
Reportable segment
Polymers

Performance Fibers &TextilesMaterials

Total

Other
(Note 1)

(Unit: Millions of yen)
Total

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

Net sales
Net sales to outside customers

12,504

8,445

7,093

28,04314

28,057—28,057

Inter-segment sales or transfer

1,315

439

51

1,806

—

1,806

(1,806)—

Total

13,819

8,885

7,144

29,85014

29,864(1,806)28,057

2,198

82

(165)

2,114

(1)

2,113

(4)

2,109

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, 2022 (April 1, 2022 to June 30, 2022)
1. Information on net sales, income or loss by reportable segment
Reportable segment
Polymers

Performance Fibers &TextilesMaterials

Total(Unit: Millions of yen)

Other
(Note 1)

Total

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

Net sales
Net sales to outside customers

13,089

8,937

7,554

29,581

18

29,599—29,599Inter-segment sales or transfer

1,464

496

31

1,992

—

1,992

(1,992)—

Total

14,554

9,434

7,585

31,57418

31,592(1,992)

29,599

1,356

142

(511)

987

(8)

979

8

987

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

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