Member of Financial Accounting Standards Foundation

Financial Results for the 2nd Quarter of the Fiscal Year Ending March 31, 2021
November 10, 2020
Listed stock exchanges: Tokyo Stock Exchange
Company name: Unitika Ltd.
Code number: 3103
URL: https://www.unitika.co.jp/e/home.htm
Representative: Shuji Ueno, President and Chief Executive Officer
Contact: Masanori Onishi, General Manager of Accounting Department
TEL: +81-6-6281-5721
Expected submission of quarterly report: November 12, 2020
Expected commencement date for paying dividend: –Preparation of supplementary explanation documents for quarterly financial results: Yes
Holding of an analyst meeting for quarterly financial results: Yes (for securities analysts and institutional investors)(Figures rounded down to nearest million yen.)
1. Consolidated performance for 2nd quarter of fiscal year ending March 31, 2021 (April 1, 2020 to September 30, 2020)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales
%
(9.4)
(4.6)

Millions of yen

Q2 of FY ending March 31, 2021
Q2 of FY ended March 31, 2020

(Note) Comprehensive income

Operating profit

54,82860,486%(2.4)(35.0)

Millions of yen

2,798
2,866

Quarterly profit
attributable to ownersof parent

Ordinary profit
Millions of yen

1,610
2,148

%
(25.0)(49.5)

Millions of yen

3,731(1,383)%——Q2 of FY ending March 31, 2021: 4,114 million yen [—%]
Q2 of FY ending March 31, 2020: (1,263) million yen [—%]
Quarterly profit per share

Diluted quarterly profit per share

Yen
61.93
(26.78)Q2 of FY ending March 31, 2021
Q2 of FY ended March 31, 2020

Yen
29.48
—

(2) Consolidated financial situation
Total assets
Q2 of FY ending March 31, 2021
FY ended March 31, 2020

(Reference) Shareholders’ equity

Net assets

Millions of yen
191,825
193,726

Capital adequacy ratio

Millions of yen
42,72638,933

%
20.5
18.3

2nd quarter of fiscal year ending March 31, 2021: 39,285 million yen
Fiscal year ended March 31, 2020: 35,481 million yen

2. Dividend payment
Annual dividend per share
End of Q1

End of Q2

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

End of Q3
Yen
0.00

Yen



Year end
Yen

Total



Yen
0.00

Yen
0.00



0.00

0.00

0.00

FY ending March 31, 2021 (forecast)(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 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 classshares mentioned below.

3. Forecast of consolidated performance for fiscal year ending March 31, 2021 (April 1, 2020 to March 31, 2021)(Percentages represent changes from same period in previous year.)Net sales

FY ending March 31, 2021

Operating profit

Millions of yen%

110,000(8.0)

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

Profit attributable toowners of parent

Ordinary profit%

Millions of yen%

Millions of yen

4,400 (19.5)

2,700(14.4)

3,800

%



Profit per
share
Yen

60.33

Member of Financial Accounting Standards Foundation* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying change of scope of
consolidation): Yes
New companies: ― (company name)
Excluded companies: One (company name) COSOF Co., Ltd.

(2) Adoption of special accounting methods for preparing quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
 Changes in accounting policies due to revisions of accounting standards: No Changes of accounting policies other than the above: No Changes in accounting estimates: No
 Retrospective restatement: No(4) Number of shares outstanding (Common stock) Number of shares outstanding at end of term (including treasury stock):
2nd quarter of the fiscal year ending March 31, 2021: 57,752,343 sharesFiscal year ended March 31, 2020: 57,752,343 shares Number of treasury stocks at end of term
2nd quarter of the fiscal year ending March 31, 2021: 94,671 sharesFiscal year ended March 31, 2020: 94,343 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
2nd quarter of the fiscal year ending March 31, 2021: 57,657,898 shares
2nd quarter of the fiscal year ended March 31, 2020: 57,658,458 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 the 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 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.
(Method to obtain the supplementary documents for quarterly financial results)
The Company plans to hold a conference call for institutional investors and securities analysts for quarterly financial results on Wednesday, November
25, 2020. It plans to post the supplementary documents for quarterly financial results to be used in this investor conference call on its website.

Member of Financial Accounting Standards Foundation

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

Yen
—
—

End of Q2
Yen
0.00
0.00

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

Yen
—
—

Yen
0.00
0.00

End of Q3
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

YenUnitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2021

 Table of contents for the attachment
1. Qualitative Information on Quarterly Results................................................................................................... 2(1) Explanation of operational results ................................................................................................................ 2(2) Explanation of financial position ................................................................................................................. 3(3) Explanation of future forecast information including forecast of consolidated performance ...................... 4
2. Quarterly Consolidated Financial Statements and Main Notes ........................................................................ 5(1) Quarterly consolidated balance sheets ......................................................................................................... 5(2) Quarterly consolidated statements of income and quarterly consolidated statements ofcomprehensive income ................................................................................................................................ 7
Quarterly consolidated statements of income
Six-month period ended September 30, 2020 ......................................................................................... 7
Quarterly consolidated statements of comprehensive income
Six-month period ended September 30, 2020 ......................................................................................... 8(3) Quarterly consolidated statements of cash flows ......................................................................................... 9(4) Notes on quarterly consolidated financial statements ................................................................................ 10(Notes on assumption of going concern) ................................................................................................... 10(Notes on significant changes in shareholders’ equity) ............................................................................. 10(Additional information) ........................................................................................................................... 10(Segment information, etc.) ....................................................................................................................... 11
3. Supplementary Materials ................................................................................................................................ 12-1-

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2021

1. Qualitative Information on Quarterly Results(1) Explanation of operational results
During the first six-month period of the consolidated fiscal year under review, the Japanese economy entered into a
recession because of a sharp decline in production and sales in a wide variety of industries, including automobiles,
the evaporation of demand from foreign visitors to Japan, a fall in demand on the backdrop of self-restraint
concerning nonessential outings, and a deterioration in the employment and income environment due to the COVID19 pandemic. Meanwhile, the global economic cycle also entered a contraction phase since nobody was able topredict when the spread of the new coronavirus infections would be fully under control and concerns grew overlingering stagnation of economic activities.
Additionally, concerning a lawsuit filed by citizens of Toyohashi City, Aichi Prefecture (the “City”), who claimed
that Unitika’s sale of land for industrial use to a third party was a breach of the land transfer contract—the land wastransferred by the City to the Company in 1951—and requested the mayor of the City to pursue 6,300 million yen
in damages and delinquency charges against the Company (the Company participated in the lawsuit as an assisting
intervener), a judgment was entered ordering the mayor to demand the Company to pay part of the above-mentioned
amount (2,094 million yen in damages and delinquency charges) in the court of second instance. In response to the
judgment, the Company, the mayor, and citizens of Toyohashi City appealed to a higher court and petitioned for
acceptance of a final appeal. However, the Supreme Court dismissed the final appeal and petition for acceptance of
final appeal and decided not to accept the petition as the final appellate court on July 21, 2020. Accordingly, theCompany paid 2,609 million yen to the City at the end of August 2020.
Under these circumstances, the Unitika Group has been endeavoring to realize the building of strong businessportfolios, promotion of global business development, a change in business culture and mind-set, the Group’s basic
policies that place the strengthening of the foundation for a growth phase as the highest priority under G-STEP30,
the 1st, a new three-year medium-term management plan announced in May 2020.
Consequently, the Group reported net sales of 54,828 million yen (down 9.4% year on year), operating profit of
2,798 million yen (down 2.4% year on year), and ordinary profit of 1,610 million yen (down 25.0% year on year).
Meanwhile, profit attributable to owners of parent amounted to 3,731 million yen (versus loss attributable to ownersof parent of 1,383 million yen in the previous year) in the consolidated fiscal year under review since the Group
posted insurance claim income of 3,398 million yen related to a fire that broke out at the Uji Plant on January 8,
2019 as an extraordinary income.
Here is an overview of the business results by segment.
From the first quarter of the current fiscal year, the Company has changed its reportable segment classification. Fora year-on-year comparison of operational results mentioned below, the change applies retrospectively to the results
for the previous fiscal year. For details, please refer to “2. Quarterly Consolidated Financial Statements and Main
Notes (4) Notes on quarterly consolidated financial statements (Segment information, etc.).”[Polymers]
The Polymers business saw a sales decrease in automotive applications, etc. due to the spread of the COVID-19
outbreak. In the Films business, the packaging sector saw demand grow temporarily in food and liquid detergent
refill applications, supported by demand from people staying at home due to self-restraint concerning nonessential
outings, telecommuting, and the suspension of classes. However, sales for confectionery souvenir applications
remained weak. Furthermore, sales of high-value-added products, such as EMBLEM HG, a barrier nylon film,
continued to grow robustly in Japan and overseas. In the industrial sector, demand was sluggish since sales fell in
information terminal equipment applications, etc. However, sales of high-value-added products, such as Uni-peel,a silicon-free mold release PET film, increased steadily. Accordingly, the sector saw a net sales and profit decline.
In the Plastics business, sales of nylon resins were poor due to the huge impact from a fall in the number of
automobiles manufactured and a delay in the recovery of sales caused by excessive inventory in the distribution
channel. Furthermore, sales of U-Polymer, a polyarylate resin, faced an uphill battle in overseas sales as well as in
information terminal equipment and office equipment applications. Sales of raw materials for other functional resins
also declined in automobile and daily commodities applications. Accordingly, the sector saw a net sales and profit
decline.
Consequently, the Polymers business posted operating profit of 2,400 million yen (down 23.3% year on year) on
net sales of 20,193 million yen (down 12.9% year on year).

-2-

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2021

[Performance Materials]
The Performance Materials business saw sales of materials for medical gowns and sanitary goods increase due tothe COVID-19 pandemic, but sales for many applications, chiefly the automotive, and building and civil engineering
fields, stagnated.
In the Activated Carbon Fibers business, overseas sales decreased in addition to a fall in sales for automotive
applications. Furthermore, sales for water purifier applications, mainly for housing equipment, also diminished.
In the Glass Fibers business, the industrial materials sector saw sales of tents and sheets, etc. for building and civilengineering applications decrease due to the postponement of projects, etc., and sales for environment-related
applications were weak. In the electronic materials sector, sales of IC cloth for information terminal equipment
applications stagnated, but sales of products for personal computer and semiconductor applications grew robustly
due to the increase in telecommuting. Sales of high-value-added products, such as super-thin products and materials
with low thermal expansion, were also strong.
In the Glass Beads business, sales of products for industrial applications were sluggish due to a fall in demand forautomotive- and machinery-component-related applications. Furthermore, sales of products for reflective material
and road applications also remained weak.
In the Non-woven Fabrics business, sales of spunbond non-woven fabrics for building and automotive applications
were sluggish both in Japan and abroad, while sales for daily product applications increased steadily due to a rise indemand for medical gowns, etc. Meanwhile, sales of spunlace non-woven fabrics for medical gown and disinfectant
sheet applications grew strongly, making up for a decrease in sales for skin-care goods applications.
In the Industrial Materials business, sales of polyester staple fibers for some sanitary material applications weresteady, but sales of ultra-high-strength polyester filament yarns decreased for building and civil engineering
applications due to the postponement of projects, etc. In addition, their sales for automotive and daily productapplications also remained weak.
Consequently, the Performance Materials business posted operating profit of 302 million yen (versus an operating
loss of 35 million yen in the previous year) on net sales of 14,546 million yen (down 12.8% year on year).

[Industrial Fibers and Textiles]
In the Garments, Lifestyle Materials and Bedding business, sales were very weak across the board, including theuniform sector, a mainstay of this business, and the women’s clothing sector, due to the COVID-19 pandemic.
However, sales grew for medical gown and protective clothing applications, supporting earnings. Meanwhile, salesof denim for overseas were weak.
Consequently, the Industrial Fibers & Textiles business posted operating profit of 165 million yen (versus an
operating loss of 79 million yen in the previous year) on net sales of 20,073 million yen (down 2.0% year on year).

[Others]
The Others category posted an operating loss of 33 million yen (versus an operating loss of 144 million yen in theprevious year) on net sales of 14 million yen (down 88.6% year on year).
(2) Explanation of financial position
Total assets decreased by 1,900 million yen from the end of the previous consolidated year to 191,825 million yen
mainly due to a decrease in notes and accounts receivable – trade despite an increase in cash and deposits from thereceipt of insurance claims related to the fire incident at the Uji Plant. Liabilities fell by 5,693 million yen from theend of the previous consolidated year to 149,099 million yen. This was primarily due to a decline in notes andaccounts payable – trade and the reversal of provision for loss on litigation. Net assets increased by 3,792 million
yen from the end of the previous consolidated year to 42,726 million yen. This was mainly due to a rise in retained
earnings caused by the posting of profit attributable to owners of parent.
Here is a summary of the cash flow situation.
(Net cash provided by [used in] operating activities)
Net cash provided by operating activities amounted to 7,979 million yen (up 73.7% year on year) during the firstsix-month period of the current consolidated fiscal year due to a decrease in trade receivables and the receipt of
insurance claims related to the fire incident at the Uji Plant despite a decline in trade payables and damage
payments in the litigation over the sale of land for industrial use.
(Net cash provided by [used in] investing activities)
Net cash used in investment activities amounted to 3,297 million yen during the first six-month period of thecurrent consolidated fiscal year (2,987 million yen used in the same period of the previous consolidated fiscal
year) due to the posting of expenses related to capital expenditures.
(Net cash provided by [used in] financing activities)
Net cash used in financing activities amounted to 1,681 million yen during the first six-month period of the current
consolidated fiscal year (2,079 million yen used in the same period of the previous consolidated fiscal year)
mainly due to repayment of borrowings.
As a result, cash and cash equivalents at the end of the second quarter of the consolidated fiscal year under review
increased by 2,829 million yen from the end of the previous consolidated fiscal year to 21,023 million yen.
-3-

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2021

(3) Explanation of future forecast information including forecast of consolidated performance
Considering the consolidated performance for the first six-month period of the current fiscal year and estimates thatraw material prices for nylon and polyester will be stable in the third quarter of the current fiscal year and later, theCompany has revised the forecast of consolidated performance for the full year of the fiscal year ending March 31,
2021 announced on October 21, 2020 as follows.
Revision of the full year forecast of consolidated performance for the fiscal year ending March 31, 2021 (April 1,2020 to March 31, 2021)
OperatingprofitNet sales
Previous forecast (A)Revised forecast (B)Ordinary profit(Millions of yen) (Millions of yen) (Millions of yen)
110,000
4,200
2,500

Profit attributable toowners of parent(Millions of yen)
3,100

Yen
48.19
60.33

110,000

4,400

2,700

3,800

Changes (B − A)



200

200

700

Percentage change (%)



4.8

8.0

22.6

119,537

5,467

3,153

(2,158)(Reference) Performance of theprevious fiscal year (the year
ended March 31, 2020)-4-

Profit per
share(43.01)

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2021

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

Previous consolidated
fiscal year
(March 31, 2020)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Machinery, equipment and vehicles, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-5-(Unit: Millions of yen)Q2 of current consolidated
fiscal year ending March 2021
(September 30, 2020)

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

21,482
26,844
28,8622,530(56)
79,661

21,54365,191
18,711
105,447

20,99865,045
19,479105,523

1,756
1,756

1,849
1,849

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

4,851
(60)
4,790
112,164
191,825

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2021

(Unit: Millions of yen)Q2 of current consolidated
fiscal year ending March 2021
(September 30, 2020)

Previous consolidated
fiscal year
(March 31, 2020)
Liabilities
Current liabilities
Notes and accounts payable – trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for product repairs
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for loss on litigation
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets-6-

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

12,195
2,383
2,656
568
1,704
42
9,971
29,522

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

93,273
14,517
11,785
119,576
149,099

100
13,21821,559(56)
34,821

100
13,21824,970(57)
38,231

361

409

(11)
6,412
(3,521)(2,581)(16)
6,412(3,379)(2,374)

660

1,053

3,451
38,933
193,726

3,441
42,726
191,825Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2021

(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income(Quarterly consolidated statements of income)(Six-month period ended September 30, 2020)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using
equity method
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
Gain on sales of investment securities
Insurance claim income
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on sales of investment securities
Loss on valuation of investment securities
Business restructuring expenses
Loss on litigation
Provision for loss on litigation
Total extraordinary losses
Profit (loss) before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent

Six-month period
ended September 30, 2019
(April 1, 2019 to
September 30, 2019)60,486
46,727
13,75910,892
2,866(Unit: Millions of yen)Six-month period
ended September 30, 2020
(April 1, 2020 to
September 30, 2020)
54,82841,587
13,241
10,443
2,798

61
46

21
49

4



63
164
340

41
221
334

599

584



24

250
208
1,058
2,148

726
186
1,522
1,610

74
0

135



3,398
3,534

74
646



691
2
26
184
70

2,500
3,213
(990)
371
38
410
(1,400)(17)(1,383)

976
4,169
499
(61)
437
3,731
(0)
3,731



44
23

-7-





Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2021

(Quarterly consolidated statements of comprehensive income)(Six-month period ended September 30, 2020)

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

Six-month period ended
September 30, 2019
(April 1, 2019 to
September 30, 2019)(1,400)(Unit: Millions of yen)Six-month period ended
September 30, 2020
(April 1, 2020 to
September 30, 2020)
3,731

33

48

(31)
(59)

(4)
132

194

207

136
(1,263)383
4,114(1,229)

4,124

(34)

(10)

-8-

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2021

(3) Quarterly consolidated statements of cash flows

Six-month period ended
September 30, 2019
(April 1, 2019 to
September 30, 2019)
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Business restructuring expenses
Loss on litigation
Provision for loss on litigation
Insurance claim income
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for product repairs
Increase (decrease) in other provisions
Interest expenses
Loss (gain) on disposal of non-current assets
Loss (gain) on sales of non-current assets
Loss (gain) on valuation of investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Proceeds from insurance income
Payments for loss on litigation
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
Payments for retirement of property, plant andequipment
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Dividends paid
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-9-(Unit: Millions of yen)Six-month period ended
September 30, 2020
(April 1, 2020 to
September 30, 2020)

(990)
2,548
23

2,500

(16)
645
(28)
(60)
599
646
(74)
44
5,654
(887)
(4,623)
(877)
5,101
108
(596)
(490)
470

4,593

4,169
2,412
184
70

(3,398)
(14)
400

(2)
584
691
(135)
26
3,957
526
(2,668)
435
7,239
71
(560)
(199)
4,064
(2,636)
7,979

(206)
(5)
1
(3,056)
501

198
(6)

(3,108)
165



(433)



197

(222)
(2,987)(311)(3,297)(188)

(1,492)(321)(76)(2,079)(79)(553)
22,122
21,569117
40(1,335)(321)(181)(1,681)(171)
2,829
18,19421,023

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2021

(4) Notes on quarterly consolidated financial statements(Notes on assumption of going concern)
Not applicable(Notes on significant changes in shareholders’ equity)
Not applicable(Additional information)(Impact of COVID-19 pandemic)
The spread of the COVID-19 outbreak has had a pervasive impact on economic and corporate activities. In
addition, it is quite difficult to predict the future development of the outbreak and the timing of its successful
containment. Thus, based on information available from external sources, the Unitika Group made accounting
estimates on impairment of non-current assets and recoverability of deferred tax assets etc. on the assumptionthat the Group business will continue to be affected by COVID-19 for a certain period in the fiscal year ending
March 31, 2021.
The assumption used for the said estimates has not significantly changed from the one that the Group describedin the Securities Report for the previous consolidated fiscal year.
As there is a high level of uncertainty with this incident, the Group may incur losses in the future if the impact
lingers on.
(Litigation)
Concerning the lawsuit filed by citizens of Toyohashi City, Aichi Prefecture (the “City”), who claimed that
Unitika’s sale of land for industrial use to a third party was a breach of the land transfer contract—the land
was transferred by the City to the Company in 1951—and requested the mayor of the City to pursue damages
against the Company (the Company participated in the lawsuit as an assisting intervener), the judgment by the
Nagoya High Court became final due to the decision by the Supreme Court 3rd Petty Bench. In accordancewith the judgment, the Company paid 2,609 million yen in damages and delinquency charges.

- 10 -

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2021

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

Polymers

Performance
Materials

Industrial
Fibers &Textiles

Total

Other
(Note 1)

Total

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

Net sales
Net sales to outside customers
Inter-segment sales or transfer

23,182

16,68820,48760,359127

60,486



60,486

3,826

1,875

151

5,852

18

5,871

(5,871)



Total

27,00918,564

20,63866,212

145

66,357(5,871)60,486

3,130
(35)
(79)
3,015
(144)
2,871
(5)
Segment income (loss)(Notes) 1. The Other segment includes business segments that are not included in reportable segments.
2. Adjustment of Segment income (loss) is attributable to the elimination of inter-segment transactions.
3. Segment income (loss) is adjusted with operating profit in consolidated statements of income.

2,866

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

Polymers

Performance
Fibers &Materials

Total

Other
(Note 1)

Total

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

Net sales
Net sales to outside customers
Inter-segment sales or transfer

20,193

14,546

20,07354,81414

54,828



54,828

3,747

2,378

136

6,263



6,263

(6,263)



Total

23,941

16,925

20,21061,077

14

61,091(6,263)54,828

2,400
302
165
2,867
(33)
2,834
(35)
Segment income (loss)(Notes) 1. The Other segment includes business segments that are not included in reportable segments.
2. Adjustment of Segment income (loss) is attributable to the elimination of inter-segment transactions.
3. Segment income (loss) is adjusted with operating profit in consolidated statements of income.

2,798

2. Matters concerning the revision of reportable segments
From the first quarter of the current fiscal year, the Company has changed its organizational management
system and has reviewed the Group’s management classification to promote its new medium-term
management plan. Accordingly, it has changed its reportable segment classification to “Polymers,”“Advanced Materials,” and “Industrial Fibers & Textiles” from “Polymers,” “Performance Materials,” and“Fibers & Textiles.”For your information, segment information for the first six-month period ended September 30, 2019 (April
1, 2019 to September 30, 2019) was prepared in accordance with the new reportable segment classification.

- 11 -

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2021

3. Supplementary Materials
1. Results and earnings forecast for fiscal year ending March 2021 (consolidated)(Millions of yen)

FY ended March2019
FY ended March
2020
FY ending March
2021
Comparison withprevious year

Consolidated

Net sales

OperatingprofitOrdinary
profitProfit attributableto owners of parent

Full year

129,098

8,144

7,093

5,232

Q2
Full year
Q2
Full year (forecast)
Q2
Full year

60,486
119,537
54,828110,000(5,657)(9,537)

2,866
5,467
2,798
4,400
(68)
(1,067)

2,148
3,153
1,610
2,700
(537)
(453)

(1,383)(2,158)
3,731
3,800
5,115
5,958

2. Segment information (consolidated)(Millions of yen)
Performance
Materials

Industrial Fibers& Textiles

23,182

16,68820,487

127—

60,486

38.3
3,130
109.2

27.6
(35)
(1.2)

33.9
(79)
(2.8)

0.2
(144)
(5.0)

—

100.0
2,866
100.0

20,193

14,546

20,073

14—

54,828

36.8
2,400
85.8

26.5
302
10.8

36.6
165
5.9

0.0
(33)
(1.2)

—

100.0
2,798
100.0

Other Adjustment

1st six-month
period ended
September
2019(Results)
1st six-month
period ended
September
2020(Results)

Net sales to outside
customers
Component ratio (%)
Operating profit
Component ratio (%)
Net sales to outside
customers
Component ratio (%)
Operating profit
Component ratio (%)
Net sales to outside
customers(2,988)(2,142)

(413)

(112)

—

Comparison with the same
period of the previous year

Increase/decrease fromprevious year (%)(12.9)(12.8)(2.0) (88.6)—

Operating profit

(730)

337

Increase/decrease fromprevious year (%)(23.3)

Results forprevious
fiscal year

Results for
current
fiscal year

Consolidated
total

Polymers

—

244
—

(5)
(0.2)

(35)
(1.3)

110
—

(5,657)
(9.4)
(30)

(68)

—

(2.4)

3. Capital investment, Depreciation (Property, plant and equipment), R&D expenditures, Interest-bearing liabilities,
Financial account balance, Number of permanent employees (consolidated)(Millions of yen, persons)Capitalinvestment
FY ended
March 2019
1st six-month
period ended
September 2019
FY ended
March 2020
1st six-month
period ended
September 2020

Depreciation(Property,
plant andequipment)

R&D
expenditures

Interest-bearing
Financialliabilities (endaccount balanceof fiscal year)

Number ofpermanent
employees(persons)

Full year

6,074

4,481

3,474

102,603(1,066)

3,497

Q2

3,154

2,268

1,831

100,922

(490)

3,477

Full year

9,316

4,765

3,624

99,595(1,014)

3,438

Q2

3,033

2,179

1,832

98,313

(513)

3,435

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

FY ended
March 2019
1st six-month
period ended
September 2019
FY ended
March 2020
1st six-month
period ended
September 2020

Cash flow fromoperating activities

Cash flow frominvestment activities

Cash flow fromfinancing activities

Full year

8,985(6,440)(6,519)22,122Q2

4,593(2,987)(2,079)21,569Full year

9,797(10,192)(3,482)

18,194

Q2

7,979(3,297)(1,681)

21,023- 12 -Cash and cash equivalents
at end of fiscal year