Member of Financial Accounting Standards Foundation

Financial Report for Fiscal Year ended March 31, 2019 [Japanese GAAP] (Consolidated)
May 14, 2019
Company name: Unitika Ltd.
Listed stock exchange: Tokyo Stock Exchange
Code number: 3103 URL: https://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 27, 2019
Expected date for submitting securities report: June 27, 2019
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, 2019 (April 1, 2018 to March 31, 2019)(1) Consolidated business results(Percentages represent changes from same period in previous year.)Net sales

Operating profit

Millions of yen

FY ended March 31, 2019
FY ended March 31, 2018
(Note) Comprehensive income% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen

129,0980.6
8,144(30.1)
7,093(28.9)
128,388
1.7
11,658
(7.0)
9,972
(4.9)
FY ended March 31, 2019: 4,302 million yen [(48.0%)]
FY ended March 31, 2018: 8,280 million yen [2.2%]
Net income per Diluted net income
Return on equity
Return on asset
share
per share
Yen

FY ended March 31, 2019
85.17
FY ended March 31, 2018133.25(Reference) Equity in earnings/losses of affiliates

Yen

%

52.81
13.9
89.40
20.5
FY ended March 31, 2019: 29 million yen
FY ended March 31, 2018: (54) million yen

5,232
8,081

%

(35.3)
9.4

Ratio of operating
profit to sales
%

%

3.5
4.8

6.3
9.1

(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.
(Note) “Partial Amendments to Accounting Standard for Tax Effect Accounting” (Accounting Standards Board of Japan (ASBJ) Statement No. 28,
February 16, 2018) has been applied from the beginning of the current fiscal year. The change applies retroactively to the results of theprevious fiscal year.

(2) Consolidated financial situation
Total assets

Net assets

Millions of yen

Capital adequacy ratio

Net assets per share

Millions of yen%

Yen

FY ended March 31, 2019
199,093
41,352
FY ended March 31, 2018
201,447
40,729(Reference) Shareholders’ equity: FY ended March 31, 2019: 37,873 million yen
FY ended March 31, 2018: 37,165 million yen

19.0
18.4

229.85160.75(Note) “Partial Amendments to Accounting Standard for Tax Effect Accounting” (Accounting Standards Board of Japan (ASBJ) Statement No. 28,
February 16, 2018) has been applied from the beginning of the current fiscal year. The change applies retroactively to the results of theprevious fiscal year.

(3) Consolidated cash flows situation
Cash flows fromoperating activities
FY ended March 31, 2019
FY ended March 31, 2018

Cash flows frominvesting activities

Cash flows fromfinancing activities

Balance of cash andcash equivalents atperiod end

Millions of yen

Millions of yen

Millions of yen

Millions of yen

8,985
9,739

(6,440)(3,231)(6,519)(17,207)22,122
26,169

2. Dividend payment
Annual dividend per share

FY ended March 31, 2018
FY ended March 31, 2019
FY ending March 31, 2020
(forecast)End of Q1

End of Q2

End of Q3

Yen

Yen

Yen

Year end

Total

Yen

Annualdividends paid
(Total)Yen

Millions of yen




0.00
0.00




0.00
0.00

0.00
0.00






0.00



0.00

0.00

Dividend
payout ratio(consolidated)

Dividend ratioof net assets(consolidated)

%




%






(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, 2020 (April 1, 2019 to March
31, 2020)(Percentages represent changes from same period in previous year.)
Profit attributable
Net income
Operating profit
Ordinary profit
to owners ofper share
parentNet sales

1st half of FY ending March 31,
2020
FY ending March 31, 2020

Millions ofyen%Millions ofyen%

63,000

(0.6)

2,700

132,000

2.2

6,500

Millions ofyen%Millions of
yen

%

Yen

(38.8)

2,000 (53.0)

700(81.9)

9.34(20.2)

5,200 (26.7)

2,700(48.4)

41.25* 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: 2 (company name) UNITIKA EMBLEM CHINA LTD.,
UNITIKA NARIWA CO., LTD.
(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 share):Fiscal year ended March 31, 2019: 57,752,343 sharesFiscal year ended March 31, 2018: 57,752,343 shares(ii) Number of treasury shares at end of term
Fiscal year ended March 31, 2019: 93,637 sharesFiscal year ended March 31, 2018: 91,653 shares(iii) Average number of shares outstanding during the term
Fiscal year ended March 31, 2019: 57,659,366 sharesFiscal year ended March 31, 2018: 57,668,251 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 Average number of shares outstanding during the term was calculated on the assumption that therelevant 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, 2019 (April 1, 2018 to March 31, 2019)(1) Non-consolidated business results(Percentages represent changes from same period in previous year.)Net sales
FY ended March 31, 2019
FY ended March 31, 2018

Operating profit

Millions of yen%

80,322
81,112(1.0)
2.6

Millions of yen

Net income

Millions of yen%

Millions of yen%

6,915 (27.5)
9,537 (2.9)

6,350
8,362

(24.1)
3.4

4,196
5,715

(26.6)(27.2)Net income per share
FY ended March 31, 2019
FY ended March 31, 2018

Ordinary profit%

Diluted net income per share
Yen

Yen

67.20
92.21

42.35
63.22

(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
Millions of yen

Net assets

Capital adequacy ratio

Net assets per share

Millions of yen%

Yen

FY ended March 31, 2019
177,231
39,406
FY ended March 31, 2018
181,889
39,007(Reference) Shareholders’ equity: FY ended March 31, 2019: 39,406 million yen
FY ended March 31, 2018: 39,007 million yen

22.2
21.4

256.44
192.70* 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(Note on forward-looking statements)
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.
(Change of date indication)
Date indication has been changed to the western calendar format from the Japanese calendar format from the Brief Report of Financial Statements for
the Fiscal Year Ended March 31, 2019.

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
Yen

Class A share
FY ended March 31, 2018
FY ended March 31, 2019——

FY ending March 31, 2020 (forecast)—Yen

End of Q2

End of Q3

Yen

Yen

0.00
0.00

—
—

0

—

Yen

Class B share
FY ended March 31, 2018
FY ended March 31, 2019

—
—

0.00
0.00

FY ending March 31, 2020 (forecast)

—

0

Yen

Year end

Total

Yen

Yen

12,000.00
12,000.00

12,000.00
12,000.00

12,000.00

12,000.00

Yen

Yen

—
—

23,740.00
23,740.00

23,740.00
23,740.00—

23,740.00

23,740.00

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2019 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, 2019 and the fiscal year
ending March 31, 2020 ...................................................................................................................................... 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(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(Items related to the fiscal closing dates of consolidated subsidiaries) ............................................................. 13(Notes on significant changes in shareholders’ equity) ..................................................................................... 13(Changes in representation methods) ................................................................................................................ 14(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, 2019

1. Overview of Business Performance(1) Overview of business performance of the year
During the consolidated accounting year under review, the Japanese economy continued to grow steadily,
supported by robust domestic demand against the backdrop of an improvement in the employment and income
environment, capital investment, and demand from inbound tourists to Japan, although it was affected by the
downturn of exports and production caused by the overseas economic slowdown, mainly in China. Meanwhile,
the outlook for the global economy remained unclear because of lingering worries about the unstable politicalsituation in Europe and geopolitical risks as well as uncertainties, including the impact of trade friction between
the U.S. and China and overseas economic slowdown.
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 plan.
Consequently, the Group reported net sales of 129,098 million yen (up 0.6% year on year), operating profit of
8,144 million yen (down 30.1% year on year), ordinary profit of 7,093 million yen (down 28.9% year on year),and profit attributable to owners of parent of 5,232 million yen (down 35.3% year on year) in the consolidated
accounting year under review.
Furthermore, on January 8, 2019, a fire broke out at the Uji Plant, burning part of the polymerization facilities.
The Unitika Group regrets that the occurrence of fire caused significant inconvenience and worry to ourshareholders, residents living near the Plant, relevant ministries and agencies, and other concerned parties.
Accordingly, the Group posted 87 million yen of loss on fire, expenses for disaster recovery and assets lost, as
an extraordinary loss in the consolidated accounting year under review.
The following is an overview of the business results by segment.
[Polymers]
The Polymers business saw production and sales of nylon products temporarily decrease in the Films and Plastics
businesses due to the occurrence of fire at the Uji Plant in January 2019. In addition, the Polymers business wasaffected by changes in raw materials and fuel prices throughout this fiscal year.
In the Films business, sales in the packaging sector continued to grow steadily, supported by strong sales ofseasonal products and expansion in demand for products related to consumption by inbound tourists to Japanand convenience store goods. Furthermore, sales of high value-added products, such as EMBLEM HG, a barriernylon film, also grew vigorously in Japan and overseas. In the industrial sector, sales were steady in the area ofelectronics applications in the first half of the year due to strong demand in the semiconductor market, but sales
slightly slowed down in the second half of the year. Meanwhile, sales of high value-added products such as Unipeel, a silicon-free mold release PET film, were also robust. Consequently, the Films business recorded a rise insales and a fall in profit.
In the Plastics business, sales of U-Polymer, the Company’s original polyarylate resin, decreased from theprevious year owing to the impact of inventory adjustment in some applications in the second half of the year,
despite a steady increase in sales for automobile applications overseas in the first half of the year. Sales of nylon
resins were steady for automobile applications. Meanwhile, demand for elitel, a thermoplastic saturated
copolymeric polyester resin, and ARROWBASE, a range of environmentally friendly water-based polyolefin
cationic emulsions, decreased for solar cell applications. Consequently, the Plastics business saw sales remain
flat but profit decline.
In the Non-woven Fabrics business, sales of polyester spunbond fabrics, in general, continued to grow steadilyin each application. However, demand for polyester spunbond fabrics remained sluggish in part of interior andbuilding materials applications. THAI UNITIKA SPUNBOND CO., LTD. (TUSCO), a subsidiary in Thailand,
saw sales increase due to a rise in the utilization of its new machinery, but had difficulty in staying profitableowing to several factors, including an increase in depreciation. Sales of cotton spunlace grew strongly, supported
by steady demand for skin care goods. Consequently, the Non-woven Fabrics business reported a rise in sales
and a fall in profit.
Consequently, the Polymers business posted operating profit of 7,048 million yen (down 25.0% year on year)
on net sales of 61,963 million yen (up 5.9% year on year).

-2-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2019

[Advanced Materials]
In the Glass Fibers business, the industrial materials sector saw sales of products for building applications, suchas transparent sheets, grow steadily. In the electronic materials sector, sales of IC cloth decreased due to thedeterioration of the semiconductor market, but sales of high value-added products, such as super thin products,
increased robustly, mainly for information terminal equipment applications.
In the Glass Beads business, sales for industrial applications, such as electronics components and automobile
parts, grew strongly, but sales of products for reflective material applications were affected by a fall in demand.
In the Activated Carbon Fibers business, sales for our mainstay water purifier applications, especially faucet
built-in water purifiers, remained robust and sales for VOC removal applications continued to grow steadily.
However, sales for industrial applications remained sluggish.
Consequently, the Advanced Materials business posted operating profit of 1,219 million yen (down 0.6% year
on year) on net sales of 12,739 million yen (up 1.6% year on year).
[Fibers and Textiles]
The Industrial Materials business, in general, was affected by the fluctuation of raw materials and fuel prices.
Sales of staple fibers were sluggish for daily product applications, but sales of high value-added products, suchas composite fibers, remained robust. Furthermore, sales of ultra-high-strength polyester filament yarns
continued to grow steadily, especially for civil engineering and building applications.
In the Garments, Lifestyle Materials and Bedding business, sales in the uniform sector for corporate customers,a mainstay of this business, remained steady and sales of raw fibers for high-functional materials also grewstrongly, supported by a recovery in demand in the bedding goods sector. However, sales continued to besluggish in the sports clothing and women’s clothing sectors. Furthermore, in the Overseas business, sales ofdenim remained weak.
Consequently, the Fibers and Textiles business posted operating profit of 159 million yen (down 87.7% year
on year) on net sales of 52,862 million yen (down 1.4% year on year).
[Others]
The Others category posted an operating loss of 275 million yen (compared to an operating loss of 277 million
yen in the previous year) on net sales of 1,532 million yen (down 58.8% year on year).
(2) Overview of financial position
Total assets decreased by 2,353 million yen from the end of the previous consolidated year to 199,093 million
yen, mainly due to a decrease in cash and deposits. Liabilities fell by 2,976 million yen from the end of theprevious consolidated year to 157,740 million yen, mainly due to a decline in interest-bearing liabilities. Net
assets grew by 622 million yen from the end of the previous consolidated year to 41,352 million yen. This was
mainly due to a rise in retained earnings caused by the posting of profit attributable to owners of parent.

-3-Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2019(3) Overview of cash-flow
Cash and cash equivalents (hereinafter referred to as “net cash”) as of March 31, 2019 decreased by 4,047 million
yen to 22,122 million yen.
(Net cash provided by [used in] operating activities)
Cash flows from operating activities increased by 8,985 million yen during the current consolidated fiscal year
(down 7.7% 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 6,440 million yen during the current consolidated fiscal year
(decreased by 3,231 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 6,519 million yen during the current consolidated fiscal
year (decreased by 17,207 million yen in the previous consolidated fiscal year), due to the acquisition andretirement of Class B 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, 2019Year ended
March 31, 2018Year ended
March 31, 2017

19.0

18.4

19.7

12.3

19.1

25.3

11.8

11.1

6.2

7.4

7.3

8.8

(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 which interest 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.
The Unitika Group will steadily implement the measures outlined in its medium-term management plan and
expects to adequately cope with changes in its business environment. However, as the Group needs more time toclosely examine the impact of the fire that broke out at the Uji Plant in January 2019, it forecasts that the Group
records net sales of 132,000 million yen, operating profit of 6,500 million yen, ordinary profit of 5,200 million
yen, and profit attributable to owners of parent of 2,700 million yen in the year ending March 31, 2020.

-4-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2019(5) Basic policy for profit distribution and dividends for the fiscal year ended March 31, 2019 and the fiscal year
ending March 31, 2020
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, 2019,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, 2019

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, 2018)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
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
Retirement 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, 2019)26,39536,552
27,202
2,899(84)
92,965

22,58035,316
29,6392,416(61)
89,891

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

10,67523,002
1,159
65,629293
2,107
102,868

2,139
2,139

1,927
1,927

2,840
8
285
18
333
1,220
(20)
4,686
108,481
201,447

2,694
8
423
29
245
1,042
(37)
4,406
109,202
199,093

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2019

(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2018)
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
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for retirement benefits for directors (and otherofficers)
Retirement 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, 2019)18,968
2,450
2,720
57
676
1,576
704
20
8,509
35,68518,0562,430
99,993
34
589
1,648
72
—
8,709
131,534

100,081
674
7,672
3,580
4

180
588
7,953
3,579
4

12,218799
125,031
160,717

13,184715
26,206
157,740

100
16,451
19,201(55)
35,698100
13,21824,040(56)
37,302

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

363
(69)
6,412
(3,589)(2,545)571

3,564
40,729201,4473,479
41,352
199,093

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2019(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
Foreign exchange gains
Reversal of provision for loss on anti-monopoly act
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
Gain on liquidation of subsidiaries and associates
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss due to fireBusiness structure improvement expenses
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, 2017 toMarch 31, 2018)
128,388
96,51531,873
20,214
11,658Current consolidated
fiscal year
(April 1, 2018 toMarch 31, 2019)
129,098
99,77929,31921,175
8,144

73
74
143
76
—
—
94
176
639

78
72
127
—
29
159
—
236
704

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

1,217
—
—
537
1,754
7,093

763
58
—
822

35
—
398
434

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

599
87
157
844
6,684
1,004
447
1,452
5,231
(0)
5,232

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2019

(Consolidated comprehensive income statement)(Unit: Millions of yen)

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 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, 2017 toMarch 31, 2018)
8,113

Current consolidated
fiscal year
(April 1, 2018 toMarch 31, 2019)
5,231

11
(11)
32

(128)
(78)
(820)

134
167
8,280

99
(929)
4,302

8,279

4,339

1

(36)

-9-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2019(3) Consolidated statements of changes in net assets
Previous 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 of parent

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
Capital increase of consolidated
subsidiaries
Change of scope of consolidation - foreign
currency translation adjustment
Reversal of revaluation reserve for land
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
Valuationdifferenceonavailablefor-salesecurities
Balance at beginning of current period

480

Deferred
gains orlosses onhedges

Revaluation
reserve for
land

8

6,415

Total
NonForeign
Reaccumulated
controllingcurrency measurements
otherof definedinterests
translation
comprehenadjustment benefit plans
sive income(2,856)(2,779)

1,269

3,422

Total net
assets45,264

Changes of items during period
Dividends of surplus(997)

Profit attributable to owners of parent

8,081

Purchase of treasury shares(11,957)

Disposal of treasury shares

0

Retirement of treasury shares—

Capital increase of consolidated
subsidiaries
Change of scope of consolidation - foreign
currency translation adjustment
Reversal of revaluation reserve for land
Net changes of items other thanshareholders’ equity

11

(11)

Total changes of items during period

11

(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- 10 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2019

Current consolidated fiscal year (April 1, 2018 to March 31, 2019)(Unit: Millions of yen)
Shareholders’ equity
Capital stock
Balance at beginning of current period

Capital surplus
100

Retained earnings

16,451

Total shareholders’equityTreasury shares

19,201(55)

35,698Changes of items during period
Dividends of surplus

(397)

(397)

Profit attributable to owners ofparent

5,232

5,232

Purchase of treasury shares(3,270)(3,270)000(3,269)3,269—

Disposal of treasury shares
Retirement of treasury shares
Capital increase of consolidated
subsidiaries

36

36

Change of scope of consolidation foreign currency translation
adjustment
Reversal of revaluation reserve for
land

3

3

Net changes of items other thanshareholders’ equity
Total changes of items during
period—(3,232)

4,838

(1)

1,603

Balance at end of current period

100

13,21824,040(56)

37,302

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

491

Deferred
gains orlosses onhedges(2)

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive income

Noncontrollinginterests

Total net
assets6,415(2,793)(2,644)

1,467

3,564

40,729Changes of items during period
Dividends of surplus(397)

Profit attributable to owners ofparent5,232

Purchase of treasury shares(3,270)

Disposal of treasury shares

0

Retirement of treasury shares—

Capital increase of consolidated
subsidiaries(36)

Change of scope of consolidation foreign currency translation
adjustment(439)

Reversal of revaluation reserve forland
Net changes of items other thanshareholders’ equity

(3)
(128)

(67)

Total changes of items during
period

(128)

(67)

Balance at end of current period

363

(69)

—

(439)

(439)

(3)

—

(356)

99

(453)

(48)

(501)

(3)

(795)

99

(895)

(84)

622

6,412

(3,589)(2,545)

571

3,479

41,352- 11 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2019(4) Consolidated statements of cash flow
(Unit: Millions of yen)Previous consolidated
fiscal year
(April 1, 2017 toMarch 31, 2018)
Cash flows from operating activities
Profit before income taxes
Depreciation
Loss due to fire
Loss (gain) on liquidation of subsidiaries and associates
Business structure improvement expenses
Reversal of provision for loss on anti-monopoly
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for business structure improvement
Increase (decrease) in provision for product repair
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 shares
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, 2018 toMarch 31, 2019)

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

6,684
5,035
87
(398)
157
—
(5)
1,072
(20)
(632)
72
1,217
599
(35)
—
1,133
(2,512)(828)(337)
11,287150(1,213)(1,240)
—
8,985

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

(236)
(10)
0
(5,769)55(479)(6,440)(982)
95(3,155)(997)(11,949)(216)(17,207)(22)(10,721)36,89026,169(18)
140(2,765)(397)(3,269)(209)(6,519)(71)(4,047)
26,16922,122

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2019(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 anditems related to the fiscal closing dates of consolidated subsidiaries stated below.

(Scope of consolidation)(1) Number of consolidated subsidiaries: 28 companies
Name of major consolidated subsidiaries:
NIPPON ESTER CO., LTD.
UNITIKA TRADING CO., LTD.
The number of consolidated subsidiaries decreased by two 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 the scope of
consolidation.
(Items related to the fiscal closing dates of consolidated subsidiaries)
Eleven consolidated companies adopt fiscal closing dates different from the fiscal closing date for the consolidated
accounting, as follows:
December 31: P.T.EMBLEM ASIA and nine other companies
February 28: UNITIKA (HONGKONG) LTD.
When preparing consolidated financial statements of the Company, the financial statements as of the closing dates ofthese subsidiaries are used, and necessary adjustments are made for important transactions occurring in these subsidiaries
after their closing dates until the closing date for the consolidated accounting.

(Notes on significant changes in shareholders’ equity)
UNITIKA LTD. resolved at the meeting of the Board of Directors held on November 8, 2018 to acquire part of theClass B shares issued by the Company (worth 3,200 million yen) in exchange for cash payment in accordance withthe provision of Article 13-3, Item 6 of the Company’s Articles of Incorporation (Call Options, the Consideration
for Which Is Money) and to retire the same in accordance with the provision of Article 178 of the Companies Act
subject to the said acquisition. The Company acquired and retired the shares as of February 28, 2019.
(1) Details of acquisition of Class B shares(a) Class of shares acquired: Class B shares(b) Counterparties in the acquisition (shareholders): Mizuho Bank, Ltd., Mitsubishi UFJ Trust and Banking
Corporation(c) Total number of shares acquired: 3,200 shares(Note) Regarding the above 3,200 shares, the number of shares acquired from each shareholder was
proportionally calculated in accordance with the Company’s Articles of Incorporation. Accordingly, theCompany acquired 2,020 shares from Mizuho Bank, Ltd. and 1,180 shares from Mitsubishi UFJ Trustand Banking Corporation.
(d) Share acquisition value: 1,021,723.7 yen per share(Note) The above share acquisition value was calculated by adding the unpaid preferred dividend on a perdiem basis (21,723.7 yen) to the amount to be paid per Class B share (1,000,000 yen).
(e) Total share acquisition value: 3,269,515,840 yen- 13 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2019(f) Acquisition date: February 28, 2019(2) Details of retirement of Class B shares(a) Class of shares retired: Class B shares(b) Total number of shares retired: 3,200 shares(c) Effective date of retirement: February 28, 2019(3) Impact on net assets after retirement of shares
Capital surplus decreased by 3,269,515,840 yen.

(Changes in representation methods)(Application of “Partial Amendments to Accounting Standard for Tax Effect Accounting”)“Partial Amendments to Accounting Standard for Tax Effect Accounting” (Accounting Standards Board of Japan(ASBJ) Statement No. 28, February 16, 2018) has been applied from the beginning of the current fiscal year.
Accordingly, deferred tax assets have been classified as investments and other assets, and deferred tax liabilities
have been classified as non-current liabilities.
(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, 2019

3. Information on the amount of net sales, profit or loss, assets and other items by reportable segment
Previous 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
107,064
17,456
46,189170,710
8,762
179,473
21,973
201,447
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 21,973 million yen for Segment assets includes investment of surplus funds (cash and deposits) by the parent
company, long-term investment funds (investment securities) and assets, etc. related to the Administration and the Researchand 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 the consolidated income statement.

- 15 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2019

Current consolidated fiscal year (April 1, 2018 to March 31, 2019)
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
61,963
12,73952,862
127,565
1,532
129,098—
129,098
Inter-segment sales ortransfer
9,415
829
498
10,743
1,236
11,979(11,979)—
Total
71,37813,56953,360138,308
2,768
141,077(11,979)
129,098
Segment income (loss)
7,048
1,219
159
8,427
(275)
8,151
(6)
8,144
Segment assets
109,810
17,61547,022
174,448
6,623
181,072
18,020199,093
Other items
Depreciation andamortization
3,523
346
479
4,350
8
4,359
676
5,035
Increase in property, plantand equipment andintangible assets
4,593
376
384
5,354
26
5,381
1,035
6,416
(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 6 million yen for Segment income (loss) is attributable to the elimination of inter-segment transactions.
(2) Adjustment of 18,020 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 676 million yen for Depreciation and amortization is depreciation and amortization of common assets thatare not allocated to each reportable segment.
(4) Adjustment of 1,035 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, 2019

(Per share information)
Previous consolidated fiscal year
(April 1, 2017 to March 31, 2018)

Current consolidated fiscal year
(April 1, 2018 to March 31, 2019)

Net assets per share

160.75 yen

229.85 yen

Net income per share

133.25 yen

85.17 yen

Net income per share after
full dilution

89.40 yen

52.81 yen

(Note) 1. The Company implemented a 1-for-10 share consolidation effective as of October 1, 2017 by consolidating 10 common sharesof the Company into one common share. Net income per share and Diluted net income per share were calculated on theassumption that the relevant share consolidation had been implemented at the beginning of the previous consolidated fiscal
year.
2. The basis for the calculation of net assets per share is as follows:

Previous consolidated
fiscal year
(March 31, 2018)

Current consolidated
fiscal year
(March 31, 2019)

Total net assets (millions of yen)

40,72941,352

Amounts deducted from the total net assets (millions of yen)

31,46028,100[of which amounts to be paid in for shares of class stock(millions of yen)](27,499)(24,299)

(397)

(321)

(3,564)(3,479)[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 common
9,268
13,252stock (millions of yen)
Number of common stock at the end of the fiscal year used
57,66057,658for calculating net assets per share (thousand shares)
3. 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, 2017 to(April 1, 2018 toMarch 31, 2018)
March 31, 2019)
Net income per share
Net income attributable to owners of parent
8,081
5,232
(millions of yen)Amount not attributable to common stockholders
397
321(millions of yen)[of which preferred dividends (millions of yen)]

(397)

(321)

7,684

4,910

57,66857,659397

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

(397)

(321)

Increased number of common stock (thousand shares)

32,732

41,425[of which preferred shares (thousand shares)](32,732)(41,425)

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.

(Material subsequent events)
Not applicable.
- 17 -——

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2019

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

FY ended March 2018

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

FY ended March 2019
FY ending March 2020
Comparison with prioryear

128,388
63,379129,098
63,000132,000
(379)
2,902

(Millions of yen)
Net income
attributable toowners of parent
8,081
3,875
5,232
700
2,700
(3,175)(2,532)

Ordinary
profit11,658
4,408
8,144
2,700
6,500
(1,708)(1,644)

9,972
4,257
7,093
2,000
5,200
(2,257)(1,893)(2) Segment information (consolidated)(Millions of yen)

Net sales to outside
customers
FY ended
Component ratio (%)
March 2018
Operating profit
Component ratio (%)
Net sales to outside
customers
Results for
FY ended
Component ratio (%)
current fiscal
March 2019year
Operating profit
Component ratio (%)
Net sales to outside
customers
Increase/decrease
Comparison with prior year from prior year (%)
Operating profit
Increase/decrease
from prior year (%)
Net sales to outside
customers(Forecast) Component ratio (%)
Operating profit
Component ratio (%)
FY ending
Net sales to outside
March 2020
customers(Forecast)
Increase/decrease
Comparison from prior year (%)
Operating profit
Increase/decrease
from prior year (%)
Results forprior fiscal
year

Elimination
Consolidatedor
total
corporate

Polymers

Advanced
Materials

Fibers &Textiles

58,516

12,536

53,612

3,723—

128,388

45.6
9,401
80.6

9.8
1,227
10.5

41.8
1,290
11.1

2.9
(277)
(2.4)

—
16
0.1

100.0
11,658100.0

61,963

12,73952,862

1,532—

129,098

48.0
7,048
86.5

9.9
1,219
15.0

40.9
159
2.0

1.2
(275)
(3.4)

—
(6)
(0.1)

100.0
8,144
100.0

3,447

203

(750)

(2,191)

—

710

5.9

1.6

(1.4)

(58.8)—

0.6(2,353)(8)(1,131)2(22)(3,514)(25.0)(0.6)(87.7)——(30.1)

65,00013,50053,5000—132,000

49.2
5,200
80.0

10.2
1,100
16.9

40.5
400
6.2

0.0
(200)
(3.1)

—
—
—

100.0
6,500
100.0

3,037

761

638

(1,532)

—

2,902

4.9

6.0

1.2

(100.0)—2.2(1,848)

(119)

241

75

—

(1,644)(26.2)

(9.8)

151.6

—

—

(20.2)Other(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)Depreciation(Property,
plant andequipment)
4,825
4,292
4,129
4,448
6,074
4,481

Capitalexpenditures

FY ended March 2017 Full year
FY ended March 2018 Full year
FY ended March 2019 Full year

Interestbearing
liabilities (endof fiscal year)
3,142
109,3273,274
105,2523,474
102,603

R&D
expenditures

Financialaccountbalance(1,826)(1,182)(1,066)

Number ofpermanent
employees(persons)
3,671
3,677
3,497

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

FY ended March 2017 Full year
FY ended March 2018 Full year
FY ended March 2019 Full year

Cash flow from
Cash flow fromoperating activities investment activities(4,158)18,111
9,739(3,231)
8,985(6,440)- 18 -Cash flow from
Cash and cash equivalents
financing activities
at end of fiscal year
(19,089)
36,890(17,207)
26,169(6,519)22,122