Member of Financial Accounting Standards Foundation

Financial Results for the 3rd Quarter of the Fiscal Year Ending March 31, 2023
February 7, 2023
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: February 13, 2023
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 3rd quarter of fiscal year ending March 31, 2023 (April 1, 2022 to December 31, 2022)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)
Quarterly profit
Operating profit
Ordinary profit
attributable to owners ofparentNet sales%
5.0⎯

Millions of yen

Q3 of FY ending March 31, 2023
Q3 of FY ended March 31, 2022

(Note) Comprehensive income

88,17383,991%(63.9)
9.8

Millions of yen

1,769
4,895

%
(46.6)
53.7

Millions of yen

2,414
4,525

Millions of yen

1,101
3,136

%
(64.9)(32.1)

Q3 of FY ending March 31, 2023: 3,898 million yen [(2.7%)]
Q3 of FY ended March 31, 2022: 4,006 million yen [(22.3%)]
Quarterly profit per share

Diluted quarterly profit per share
Yen
15.15
50.20

Q3 of FY ending March 31, 2023
Q3 of FY ended March 31, 2022

Yen
8.83
25.37

(2) Consolidated financial situation

Q3 of FY ending March 31, 2023
FY ended March 31, 2022

(Reference) Shareholders’ equity

Total assets

Net assets

Millions of yen
198,021
191,399

Millions of yen
46,66743,071

Capital adequacy ratio
%
22.5
21.6

3rd quarter of fiscal year ending March 31, 2023: 44,591 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⎯⎯

End of Q3
Yen
0.00

⎯

0.00

⎯

Year end
Yen

FY ending March 31, 2023 (forecast)

Total
Yen
0.00

Yen
0.00

0.00

0.00

(Note) Revision of the latest dividend forecast: None
(Note) The abovementioned Dividend payment refers to dividends paid to the holders of common stock. For details of dividend payment to theholders of class shares (unlisted), the rights of which are different from those of common stock, please refer to Dividend payment to theholders 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

FY ending March 31, 2023

Operating profit

Millions of yen%

123,000

7.2

Profit per share%

Millions of yen%

Millions of yen%

Yen

2,400 (60.0)

1,800(71.9)

500(77.5)

3.44

Millions of yen(Note) Revision of the latest forecasts of operational results: Yes

Profit attributable toowners of parent

Ordinary profit

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: No(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: 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):3rd 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 stocks at end of term
3rd quarter of the fiscal year ending March 31, 2023: 96,309 sharesFiscal year ended March 31, 2022: 95,761 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
3rd quarter of the fiscal year ending March 31, 2023: 57,656,347 shares
3rd quarter of the fiscal year ended March 31, 2022: 57,656,940 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(Note on forward-looking statements)
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 numerous factors. Concerning assumptions used as a basis forforecasting business performance 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 ofthe 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
—
—

End of Q2
Yen
0.00
0.00

End of Q3
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
—
—

Yen
0.00
0.00

Yen
—
—

Year end

Total

Yen
12,000.00

Yen
12,000.00

12,000.00

12,000.00

Yen
23,740.00

Yen
23,740.00

23,740.00

23,740.00

Unitika Ltd. (3103)

Financial Results for 3rd 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
Nine-month period ended December 31, 2022 ................................................................................................ 6
Quarterly consolidated statements of comprehensive income
Nine-month period ended December 31, 2022 ................................................................................................ 7(3) Notes on quarterly consolidated financial statements ..........................................................................................8(Notes on assumption of going concern)..............................................................................................................8(Notes on significant changes in shareholders’ equity) ........................................................................................8(Changes in accounting policies) .........................................................................................................................8(Segment information, etc.) .................................................................................................................................8- 1 -Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2023

1. Qualitative Information on Quarterly Results(1) Explanation of operational results
During the first nine-month period of the consolidated fiscal year under review (April 1, 2022 to December 31,2022), the Japanese economy as a whole continued to show a gradual recovering trend. Non-manufacturingindustries, chiefly service businesses, showed a sign of recovery after the government’s coronavirus measuresentered a new stage seeking coexistence with COVID-19. On the other hand, manufacturing industries suffered
negative effects because of a global fall in demand due to the tightening of credit in the United States and Europe
and re-expansion of infections in China and continuing high production costs, including raw material and fuelprices.
Under these circumstances, the Unitika Group has been endeavoring to realize “Building a robust businessportfolio,” “Promotion of the global business,” and “Reformation of the corporate culture and awareness” under“G-STEP30, the 1st,” a medium-term management plan that is in its final year.
Consequently, in the first nine-month period of the consolidated fiscal year under review, the Group reported net
sales of 88,173 million yen (up 5.0% year on year). On the other hand, operating profit decreased to 1,769 million
yen (down 63.9% year on year) due to the great impact of production cost increases caused by continuing highraw material and fuel prices and a weak yen. Furthermore, ordinary profit decreased to 2,414 million yen (down
46.6% year on year) and profit attributable to owners of parent fell to 1,101 million yen (down 64.9% year onyear) since the Company posted a foreign-exchange valuation gain of assets denominated in foreign currencies
due to a weaker yen compared to the beginning of the current fiscal year.
Here is an overview of the business results by segment.
[Polymers Segment]
The Polymers Segment had difficulty in securing profitability since demand, which had been strong, stagnated andthere were negative effects of soaring raw material and fuel prices and a weak yen, despite its efforts to raise
prices against sharp cost increases.
In the Films business, demand leveled off both in the packaging and industrial sectors. Orders decreased alongwith the adjustment of inventories in distribution channels. Even in such an environment, sales ofhigh-value-added products, such as “EMBLEM-HG,” a barrier nylon film, and “UNIPEEL,” a silicon-free release
PET film, continued to expand. Although the business revised its selling prices to cope with soaring raw material
and fuel prices, profitability worsened since costs rose faster than price hikes. Accordingly, the Films business saw
net sales increase but profit decrease.
In the Plastics business, sales increased supported by steady sales for leisure applications and the revision of sales
prices, although the COVID-19 lockdown and expansion of infection in China led to a decline in factory
operations for each application. On the other hand, the impact of a sharp rise in raw material and fuel prices
exceeded the effect of the sales price revision. Accordingly, the Plastics business saw net sales grow and profit
decline.
Consequently, the Polymers segment posted operating profit of 3,372 million yen (down 39.3% year on year) on
net sales of 38,803 million yen (up 2.4% year on year).
[Performance Materials Segment]
In the Performance Materials Segment, sales for building material applications remained robust, but sales forelectronics material applications decreased sharply. The segment struggled to remain profitable due to lingering
impacts of rising raw material and fuel prices and transportation costs.
In the Activated Carbon Fibers business, demand for mainstay water purifier applications stagnated and sales forautomobile applications were also sluggish.
In the Glass Fibers business, in the building sector, sales for incombustible tent and sheet applications were steady.
In the electronic materials sector, demand for IC cloth declined drastically in the third quarter due to a worsening
semiconductor market.
In the Glass Beads business, demand for road applications gradually recovered, but sales for retro-reflective
material applications were weak.
In the Non-woven Fabrics business, sales almost remained unchanged in Japan, but export sales steadily grew. In
addition, there were signs of recovery in demand for skin care applications.
In the Industrial Fibers business, sales decreased since demand for each application slackened. Furthermore,
profitability worsened greatly due to soaring raw material and fuel prices.
Consequently, the Performance Materials segment posted operating loss of 51 million yen (versus an operating
profit of 67 million yen in the previous year) on net sales of 26,210 million yen (up 2.8% year on year).
[Fibers and Textiles Segment]
In the Garments, Lifestyle Materials and Bedding business, business confidence deteriorated in Europe, retarding
a recovery of export sales, while demand primarily for uniforms, a mainstay of this business, and women’s
clothing recovered in Japan. On the other hand, profitability deteriorated substantially due to higher cost factors
throughout the supply chain, including surging raw material and fuel prices, the yen’s depreciation, and soaring
logistics costs.
Consequently, the Fibers & Textiles segment posted an operating loss of 1,491 million yen (versus an operating
loss of 689 million yen in the previous year) on net sales of 23,103 million yen (up 12.4% year on year).
- 2 -Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2023

[Others]
The Others category posted an operating loss of 41 million yen (versus an operating loss of 29 million yen in theprevious year) on net sales of 55 million yen (up 19.5% year on year).
(2) Explanation of financial position
Total assets increased by 6,621 million yen from the end of the previous consolidated year to 198,021 million yen
mainly due to a rise in inventories and property, plant and equipment despite a decrease principally in cash anddeposits, notes and accounts receivable-trade, and contract assets. Liabilities rose by 3,025 million yen from theend of the previous consolidated year to 151,353 million yen. This was primarily due to an increase in notes andaccounts payable-trade. Net assets grew by 3,595 million yen from the end of the previous consolidated year to46,667 million yen. This was mainly due to a rise in foreign currency translation adjustment.
(3) Explanation of future forecast information including forecast of consolidated performance
Concerning the forecast of consolidated performance for the fiscal year ending March 31, 2023, please refer to theCompany’s notice announced on February 7, 2023, “Notice Concerning Posting of Non-Operating Income(Foreign Exchange Gains) and Revision of Forecast of Consolidated Performance for the Fiscal Year Ending
March 31, 2023.”- 3 -Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2023

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly consolidated balance sheets
Previous consolidated
fiscal year
(March 31, 2022)
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- 4 -(Unit: Millions of yen)Q3 of current consolidated
fiscal year ending March 2023
(December 31, 2022)

18,985

13,50929,495

26,861

29,3983,134(87)
80,92637,4554,664(59)
82,431

19,26962,584
22,274104,128

27,54962,79818,444
108,791

2,238
2,238

2,249
2,249

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

4,661
(113)
4,548
115,589
198,021

Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2023

(Unit: Millions of yen)Q3 of current consolidated
fiscal year ending March 2023
(December 31, 2022)

Previous consolidated
fiscal year
(March 31, 2022)
Liabilities
Current liabilities
Notes and accounts payable – trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for product repairs
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 income
Non-controlling interests
Total net assets
Total liabilities and net assets- 5 -16,4502,065
91,647
598
1,742
35
9,228
121,768

19,1293,965
89,64997955
35
10,124
123,956

177
14,62811,75326,559148,328318
15,141
11,93727,397
151,353100
12,301
27,597(57)
39,942100
12,301
28,396(57)
40,741

435

392

(1)
6,313
(4,184)(1,208)1,354
1,774
43,071
191,399(19)
6,313(1,813)(1,022)3,850
2,075
46,667
198,021

Unitika Ltd. (3103)

Financial Results for 3rd 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)(Nine-month period ended December 31, 2022)(Unit: Millions of yen)
Nine-month period
Nine-month period
ended December 31, 2021
ended December 31, 2022
(April 1, 2021 to(April 1, 2022 to
December 31, 2021)
December 31, 2022)
83,991
88,173
Net sales
62,823
69,378
Cost of sales
21,167
18,795Gross profit
16,271
17,025
Selling, general and administrative expenses
4,895
1,769
Operating profit
Non-operating income
2831Interest income
58
60
Dividend income
Share of profit of entities accounted for using equity—
25
method364
1,391
Foreign exchange gains
337
332
Other
812
1,816
Total non-operating income
Non-operating expenses
837
791
Interest expenses
Share of loss of entities accounted for using equity—
0
method
345
379
Other
1,183
1,171
Total non-operating expenses
4,525
2,414
Ordinary profit
Extraordinary income
951
Gain on sales of non-current assets—
556
Insurance claim income
652
1
Total extraordinary income
Extraordinary losses
779
644
Loss on disposal of non-current assets
Loss on tax purpose reduction entry of non-current—
398
assets
28
150
Other
1,206
795
Total extraordinary losses
3,971
1,620
Profit before income taxes
563
245
Income taxes – current
278
310
Income taxes – deferred
842
555
Total income taxes
3,129
1,064
Profit(7)(37)
Profit (loss) attributable to non-controlling interests
3,136
1,101
Profit attributable to owners of parent- 6 -Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2023

(Quarterly consolidated statements of comprehensive income)(Nine-month period ended December 31, 2022)(Unit: Millions of yen)
Nine-month period ended
December 31, 2022
(April 1, 2022 to
December 31, 2022)

Nine-month period ended
December 31, 2021
(April 1, 2021 to
December 31, 2021)
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans,
net of tax
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests

- 7 -

3,129

1,064

(19)
(16)
709

(42)
(17)
2,708

203

185

877

2,833

4,006

3,898

3,926

3,598

80

300

Unitika Ltd. (3103)

Financial Results for 3rd 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 significant changes 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,
June 17, 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 accordancewith the transitional 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. Nine-month period ended December 31, 2021 (April 1, 2021 to December 31, 2021)
1. Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment
Other(Note 1)

Total

Amount posted in
Quarterly
Adjustment
consolidated(Note 2)statements ofincome(Note 3)Polymers

Performance
Materials

Fibers &TextilesNet sales
Net sales to outside customers
Inter-segment sales or transfers

37,881
3,935

25,4991,267

20,563
161

83,9445,364

46—

83,991
5,364—(5,364)

83,991—

Total

41,816

26,766

20,72589,30846

89,355(5,364)

83,991

Segment income (loss)
5,553
67
(689)
4,930
(29)
4,900
(4)
(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 quarterly consolidated statements of income.

4,895

Total

II. Nine-month period ended December 31, 2022 (April 1, 2022 to December 31, 2022)
1. Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment
Other(Note 1)

Total

Amount posted in
Quarterly
Adjustment
consolidated(Note 2)statements ofincome(Note 3)Polymers

Performance
Materials

Fibers &TextilesNet sales
Net sales to outside customers
Inter-segment sales or transfers

38,803
4,580

26,210
1,402

23,103
125

88,1186,108

55—

88,1736,108—(6,108)88,173—

Total

43,384

27,61323,22994,22755

94,282(6,108)88,173

Total

Segment income (loss)
3,372(51) (1,491)
1,829
(41)
1,787
(18)
1,769
(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 and the adjustment
of inventories.
3. Segment income (loss) is adjusted with operating profit in consolidated statements of income.

- 8 -