Member of Financial Accounting Standards Foundation

Financial Results for the 2nd Quarter of the Fiscal Year Ending March 31, 2019
November 8, 2018
Listed stock exchanges: Tokyo Stock Exchange
Company name: Unitika Ltd.
Code number: 3103
URL: http://www.unitika.co.jp/e/home.htm
Representative: Hiroyuki Shime, President and Chief Executive Officer
Contact: Masanori Onishi, General Manager of Accounting Department
TEL: +81-6-6281-5721
Expected submission of quarterly report: November 13, 2018
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, 2019 (April 1, 2018 to September 30, 2018)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales

Operating profit
%
0.5
0.8

Millions of yen

Q2 of FY ending March 31, 2019
Q2 of FY ended March 31, 2018

(Note) Comprehensive income

63,37963,064%(24.0)(7.6)

Millions of yen

4,408
5,797

Quarterly profit
attributable to owners ofparentOrdinary profit%(20.2)
29.1

Millions of yen

4,257
5,334

Millions of yen

3,875
4,752

%
(18.5)
32.5

Q2 of FY ending March 31, 2019: 3,038 million yen [(34.1%)]Q2 of FY ended March 31, 2018: 4,613 million yen [41.5%]
Quarterly net income per share

Diluted quarterly net income per share

Yen
63.76
78.96

Q2 of FY ending March 31, 2019
Q2 of FY ended March 31, 2018

Yen
39.13
50.81

(Note) 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. Quarterly net income per share and Diluted quarterly net income per share were
calculated on the assumption that the relevant share consolidation had been implemented at the beginning of the previous
consolidated fiscal year.
(2) Consolidated financial situation
Total assets
Q2 of FY ending March 31, 2019
FY ended March 31, 2018

(Reference) Shareholders’ equity

Net assets

Millions of yen
202,649
201,447

Capital adequacy ratio

Millions of yen
43,35840,729

%
19.7
18.4

2nd quarter of fiscal year ending March 31, 2019: 39,877 million yen
Fiscal year ended March 31, 2018: 37,165 million yen(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 first quarter of the current fiscal year. The change applies retroactively to theresults for the previous fiscal year.

2. Dividend payment
Dividends per share
End of Q1

End of Q2
Yen
0.00

Yen
FY ended March 31, 2018
FY ending March 31, 2019

End of Q3



Year end
Yen

Total



Yen
0.00

Yen
0.00



0.00

0.00

0.00

FY ending March 31, 2019 (forecast)(Note) Revision of the latest dividend forecast: None
(Note) The above Dividend payment refers to dividends paid to the holders of common stock. For details of dividend payment to the holders of classshares (unlisted), the rights of which are different from those of common stock, please refer to Dividend payment to the holders of class shares
mentioned below.

3. Forecast of consolidated performance for fiscal year ending March 31, 2019 (April 1, 2018 to March 31, 2019)(Percentages represent changes from same period in previous year.)Net sales

FY ending March 31, 2019

Operating profit

Profit attributable toowners of parent

Ordinary profit

Net income pershare

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

131,500

2.4

10,500

(9.9)

9,000

(9.8)

6,500

(19.6)

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

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: 2; (company name): UNITIKA EMBLEM CHINA LTD., UNITIKA NARIWA 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, 2019: 57,752,343 sharesFiscal year ended March 31, 2018: 57,752,343 shares Number of treasury stocks at end of term
2nd quarter of the fiscal year ending March 31, 2019: 93,159 sharesFiscal year ended March 31, 2018: 91,653 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
2nd quarter of the fiscal year ending March 31, 2019: 57,659,748 shares
2nd quarter of the fiscal year ended March 31, 2018: 57,670,331 shares(Note) The Company implemented a 1-for-10 share consolidation effective as of October 1, 2017 by consolidating 10 common shares of theCompany into one common share. The Number of shares outstanding at end of term, the Number of treasury stocks at end of term, and the
Average number of shares outstanding during the term were calculated on the assumption that the relevant share consolidation had been
implemented at the beginning of the previous consolidated fiscal year.

* This brief report of quarterly financial statements is not subject to audit procedures by a certified public accountant or an independent
auditor.

* Explanation on appropriate use of forecasts of performance and other special items
The forward-looking statements in this document concerning forecasting of performance etc. are based on currently available information andassumptions considered by the Company to be reasonable. Such statements are neither promises nor guarantees of future performance. The actual
performance may be significantly different from forecasts due to various factors. Concerning assumptions used as a basis for forecasting businessperformance and precautionary statements when using the forecast of performance, please refer to 1. Qualitative Information on Quarterly Results(3) Explanation of future forecast information including forecast of consolidated performance on page 3 of the attachment.

Member of Financial Accounting Standards Foundation

Dividend payment to the holders of class shares
The breakdown of dividends per share related to class shares, the rights of which are different from those of common stock, is asfollows:
Annual dividends
End of Q1
Class A share
FY ended March 31, 2018
FY ending March 31, 2019

Yen
—
—

End of Q2
Yen
0.00
0.00

FY ending March 31, 2019 (forecast)Class B share
FY ended March 31, 2018
FY ending March 31, 2019
FY ending March 31, 2019 (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, 2019 Table of contents for the attachment
1. Qualitative Information on Quarterly Results................................................................................................... 2(1) Explanation of operational results ................................................................................................................ 2(2) Explanation of financial situation ................................................................................................................ 3(3) Explanation of future forecast information including forecast of consolidated performance ...................... 3
2. Quarterly Consolidated Financial Statements
and Major Notes to Consolidated Financial Statements .................................................................................. 4(1) Consolidated quarterly balance sheets ......................................................................................................... 4(2) Consolidated quarterly statements of income and consolidated quarterly statements ofcomprehensive income ................................................................................................................................ 6
Consolidated quarterly statements of income
Six-month period ended September 30, 2018 ......................................................................................... 6
Consolidated quarterly statements of comprehensive income
Six-month period ended September 30, 2018 ......................................................................................... 7(3) Consolidated quarterly statements of cash flows ......................................................................................... 8(4) Notes on quarterly consolidated financial statements .................................................................................. 9(Notes on going concern assumption) ......................................................................................................... 9(Notes on significant changes in shareholders’ equity) ............................................................................... 9(Additional information) ............................................................................................................................. 9(Segment information) ................................................................................................................................ 9(Significant subsequent events) ................................................................................................................. 10
3. Supplementary Information ............................................................................................................................ 11-1-

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2019

1. Qualitative Information on Quarterly Results(1) Explanation of operational results
During the six-month period of the consolidated accounting year under review, the Japanese economy continued torecover. Corporate earnings and the employment environment remained robust, and there were signs of personal
consumption gradually picking up despite the negative impact of a spate of natural disasters. Looking overseas, theglobal economy remained solid, supported by the strong U.S. economy. However, the outlook for the global
economy became unclear due to the protectionist U.S. trade policy, geopolitical risk in the Middle East, and rising
raw material and fuel prices.
Under these circumstances, the Unitika Group endeavored to realize the three Gs (Growth, Global, and Governance)
promoted under the “G” round 20—to The Next Stage, its medium-term management plan. Consequently, the Group
reported net sales of 63,379 million yen (up 0.5% year on year), operating profit of 4,408 million yen (down 24.0%
year on year), ordinary profit of 4,257 million yen (down 20.2% year on year), and profit attributable to owners ofparent of 3,875 million yen (down 18.5% year on year) in the six-month period of the consolidated accounting year
under review.
Here is an overview of the business results by segment.
[Polymers]
In the Films business, sales in the domestic packaging sector continued to grow steadily, supported by an increasein demand both for summer goods due to record hot weather and for goods for convenience stores owing to the
expansion of items adopted. In addition, sales of high value-added products, such as EMBLEM HG, a barrier nylon
film, grew robustly at home and abroad. In the industrial sector, demand was steady in the area of electric andelectronics applications, supported by strong demand in the semiconductor market. Furthermore, sales of high valueadded products such as Uni-peel, a silicon-free mold release PET film, were also robust. Accordingly, the Films
business saw net sales grow but profit decrease due to soaring raw material and fuel prices.
In the Plastics business, sales of U-Polymer, the Company’s original polyarylate resin, continued to expand steadily,
supported by strong demand for both information terminal and automobile applications. Meanwhile, demand for
elitel, a thermoplastic saturated copolymeric polyester resin, continued to grow robustly for solar cell applications
from the previous period. Sales of ARROWBASE, a range of environmentally friendly water-based polyolefin
cationic emulsions, increased strongly but lost momentum in the latter half of the period because of falling demand.
Accordingly, the Plastics business posted an increase in net sales and a fall in profit due to soaring raw material andfuel prices.
In the Non-woven Fabrics business, demand for polyester spunbond fabrics continued to grow steadily from theprevious period in daily product applications, and demand, in general, remained strong for other applications. THAIUNITIKA SPUNBOND CO., LTD. (TUSCO), a subsidiary in Thailand, saw sales of existing products increasesolidly for civil engineering and carpet applications, since it had consistently encouraged customers to adopt
products manufactured by its new machinery at the stage of design. Sales of cotton spunlace continued to be robust
for daily product applications, such as skin care goods. Accordingly, the Non-woven Fabrics business saw net sales
grow but profit decrease due to soaring raw material and fuel prices.
Consequently, the Polymers business posted operating profit of 4,037 million yen (down 13.9% year on year) on
net sales of 31,087 million yen (up 9.6% year on year).
[Advanced Materials]
In the Glass Fibers business, the industrial materials sector saw sales of products for building applications, such as
incombustible sheets, grow steadily, but sales for environment-related applications were sluggish. In the electronicmaterials sector, sales of IC cloth, especially high value-added products, such as super thin products, increased
robustly, supported by strong demand for information terminal applications.
In the Glass Beads business, sales for automobile applications, electronic component applications, and road marking
applications grew steadily. However, sales for reflective material applications were sluggish due to a fall in exports.
Furthermore, a sharp rise in raw material and fuel prices affected profitability, causing profit to decrease.
In the Activated Carbon Fibers business, demand for our mainstay water purifier applications and VOC removal
applications continued to grow steadily. However, demand for industrial filter applications decreased.
Consequently, the Advanced Materials business posted operating profit of 625 million yen (down 1.9% year onyear) on net sales of 6,286 million yen (up 2.2% year on year).
[Fibers and Textiles]
In the Industrial Materials business, sales of staple fibers were sluggish for daily product applications, but sales ofhigh value-added products, such as composite fibers, remained robust. Furthermore, sales of ultra-high-strength
polyester filament yarns grew steadily, supported by strong demand for civil engineering and building applications.
However, soaring raw material and fuel prices significantly weighed on the business, leading to a fall in profit.
In the Garments, Lifestyle Materials and Bedding business, sales in the uniform sector for corporate customers, amainstay of this business, and sales of raw fibers for high-functional materials remained steady. However, sales ofclothing materials were sluggish in the sports clothing and women’s clothing sectors. Furthermore, in the Overseas
business, sales of denim decreased.
Consequently, the Fibers and Textiles business posted an operating loss of 24 million yen (operating profit of 644
million yen in the previous year) on net sales of 25,219 million yen (down 5.2% year on year).
-2-

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2019

[Others]
The Others category posted an operating loss of 203 million yen (operating loss of 185 million yen in the same
period of the previous consolidated fiscal year) on net sales of 785 million yen (down 59.7% year on year).
(2) Explanation of financial situation
Total assets increased by 1,202 million yen from the end of the previous consolidated year to 202,649 million yen,mainly due to an increase in property, plant and equipment. Liabilities fell by 1,425 million yen from the end of theprevious consolidated year to 159,291 million yen, mainly due to a decrease in long-term loans payable. Net assets
grew by 2,628 million yen from the end of the previous consolidated year to 43,358 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 5,825 million yen during the first six-month period of thecurrent consolidated fiscal year (up 57.9% year on year) mainly due to cash-in-flow, which adds depreciation to
profit before income taxes.
(Net cash provided by [used in] investing activities)
Net cash used in investment activities amounted to 3,219 million yen during the first six-month period of thecurrent consolidated fiscal year (1,564 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 1,859 million yen during the first six-month period of the current
consolidated fiscal year (15,652 million yen used in the same period of the previous consolidated fiscal year),mainly due to repayment of loans payable.
As a result, cash and cash equivalents at the end of the second quarter of the current consolidated fiscal year
increased by 3,563 million yen from the end of the previous consolidated fiscal year to 26,861 million yen.
(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 the prospectthat raw material and fuel prices are likely to remain high, affecting its earnings, mainly the Polymers and Fibers
and Textiles businesses, the Company has revised its full year forecast of consolidated performance for the fiscal
year ending March 31, 2019 announced on May 11, 2018.
Revision of the full year forecast of consolidated performance for the fiscal year ending March 31, 2019 (April 1,2018 to March 31, 2019)
OperatingprofitNet sales
Previous forecast (A)Revised forecast (B)Ordinary profit(Millions of yen) (Millions of yen) (Millions of yen)
131,500
11,50010,000

Profit attributable toowners of parent

Profit per
share(Millions of yen)
7,000

Yen
114.50131,500

10,500

9,000

6,500

107.15

Changes (B − A)

(1,000)(1,000)(500)Percentage change (%)



(8.7)

(10.0)(7.1)

128,388

11,658

9,972

8,081

133.25(Reference) Performance of theprevious fiscal year (the year
ended March 31, 2018)-3-

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2019

2. Quarterly Consolidated Financial Statements and Major Notes to Consolidated Financial Statements(1) Consolidated quarterly balance sheets(Unit: Millions of yen)Previous consolidated
Q2 of FY ending March 2019fiscal year
(September 30, 2018)(March 31, 2018)
AssetsCurrent assets
Cash and deposits
26,39527,244
Notes and accounts receivable-trade36,552
34,448Inventories
27,202
29,282
Other
2,899
2,390
Allowance for doubtful accounts
(84)
(64)
Total current assets
92,96593,300Non-current assets
Property, plant and equipment
Machinery, equipment and vehicles, net
23,081
22,935Land
65,07165,068Other, net
13,502
14,652
Total property, plant and equipment
101,654
102,657
Intangible assets
Other
2,139
2,018
Total intangible assets
2,139
2,018
Investments and other assets
Other
4,707
4,712
Allowance for doubtful accounts
(20)
(38)
Total investments and other assets
4,686
4,674
Total non-current assets
108,481
109,349
Total assets
201,447
202,649-4-

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2019

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
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
Provision for directors’ retirement benefits
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-5-(Unit: Millions of yen)Q2 of FY ending March2019(September 30, 2018)

18,968
2,450
2,720
676
1,576
704
20
8,567
35,685

18,663
2,430
2,704
655
1,644
355

8,916
35,371

100,081
4
12,21812,727125,031
160,717

98,780
4
12,61912,516
123,920
159,291

100
16,451
19,201(55)
35,698100
16,487
22,680(56)
39,212

491
(2)
6,415
(2,793)(2,644)
1,467
3,564
40,729201,447

507
(13)
6,415
(3,778)(2,465)665
3,480
43,358
202,649

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2019(2) Consolidated quarterly statements of income and consolidated quarterly statements of comprehensive income(Consolidated quarterly statements of income)(Six-month period ended September 30, 2018)(Unit: Millions of yen)Six-month period
Six-month period
ended September 30, 2017
ended September 30, 2018
(April 1, 2017 to(April 1, 2018 toSeptember 30, 2017)
September 30, 2018)
63,06463,379Net sales
47,316
48,394
Cost of sales
15,747
14,984Gross profit
9,949
10,576
Selling, general and administrative expenses
5,797
4,408
Operating profit
Non-operating income
4528Interest income
47
46
Dividend income
115
374
Foreign exchange gains
Share of profit of entities accounted for using
15equity method
69
68
Rent income
329
184
Other
607
717
Total non-operating income
Non-operating expenses
706
618
Interest expenses
Share of loss of entities accounted for using
7equity method
357
250
Other
1,070
868
Total non-operating expenses
5,334
4,257
Ordinary profit
Extraordinary income
415
Gain on sales of non-current assets
Gain on liquidation of subsidiaries and398
associates
415
398
Total extraordinary income
Extraordinary losses
196
254
Loss on disposal of non-current assets
50
Business structure improvement expenses

1
Other

248
254
Total extraordinary losses
5,502
4,402
Profit before income taxes
574
520
Income taxes-current
176
2
Income taxes-deferred
751
523
Total income taxes
Profit4,750
3,878
Profit (loss) attributable to non-controlling(2)2interests
Profit attributable to owners of parent
4,752
3,875

-6-

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2019

(Consolidated quarterly statements of comprehensive income)(Six-month period ended September 30, 2018)

ProfitSix-month period ended
September 30, 2017
(April 1, 2017 to
September 30, 2017)
4,750(Unit: Millions of yen)Six-month period ended
September 30, 2018
(April 1, 2018 toSeptember 30, 2018)
3,878

82
(4)
(386)

15
(13)
(1,020)

171

178

(136)

(839)

4,613

3,038

4,671

3,074

(57)

(35)

Other 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 toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests-7-

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2019(3) Consolidated quarterly statements of cash flows

Cash flows from operating activities
Profit before income taxes
Depreciation
Loss (gain) on liquidation of subsidiaries and affiliates
Business structure improvement expenses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for business structure
improvement
Increase (decrease) in a product repair reserve fund
Increase (decrease) in provision for loss on antimonopoly act
Increase (decrease) in other provisionInterest expenses
Loss (gain) on disposal of non-current assets
Loss (gain) on sales of non-current assets
Decrease (increase) in notes and accounts receivabletrade
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
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
Purchase of treasury shares (class shares)
Cash 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-8-Six-month period ended
September 30, 2017
(April 1, 2017 to
September 30, 2017)(Unit: Millions of yen)Six-month period ended
September 30, 2018
(April 1, 2018 toSeptember 30, 2018)

5,502
2,327

50
(2)
572

4,402
2,390
(398)

(1)
588

(111)

(20)

(469)

(349)

(94)



22
706
196
(415)

68
618
254


(812)

2,008

(1,340)
(858)
(202)
5,070
92
(703)
(770)
3,688

(2,164)
(233)
(219)
6,942
74
(608)
(583)
5,825

(43)
(5)
126
(1,914)572(300)(1,564)

(158)
(5)

(2,886)10(179)(3,219)(902)
45(1,744)(11,949)
(997)
(103)
(15,652)(64)(13,592)
36,89023,297(19)100(1,414)

(397)
(128)
(1,859)(54)691
26,16926,861

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2019(4) Notes on quarterly consolidated financial statements(Notes on going concern assumption)
Not applicable(Notes on significant changes in shareholders’ equity)
Not applicable.
(Additional information)(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 first quarter of the current fiscal year. Accordingly, deferred tax assets have been classified as
investment and other assets, and deferred tax liabilities have been classified as non-current liabilities.
(Segment information)
Segment Information
I. Six-month period ended September 30, 2017 (April 1, 2017 to September 30, 2017)
1. Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment

Polymers

Advanced Fibers &Materials Textiles

Total

Other
(Note 1)

Total

Amount posted in
Consolidated
quarterly
Adjustment
statements of(Note 2)income(Note 3)

Net sales
Net sales to outside customers

28,357

6,150

26,607

61,116

1,948

63,064

4,693

459

412

5,565

596

6,162


(6,162)

63,064

Inter-segment sales or transfers
Total

33,051

6,610

27,02066,681

2,544

69,226(6,162)

63,064Segment income (loss)
4,688
638
644
5,970
(185)
5,785
12
5,797
(Notes) 1. The Other segment includes business segments that are not included in the reporting segments, such as the design,
construction, and maintenance businesses of plant projects.
2. Adjustment of Segment income (loss) is attributable to the elimination of inter-segment transactions.
3. Segment income (loss) is adjusted with operating profit in consolidated statements of income.

II. Six-month period ended September 30, 2018 (April 1, 2018 to September 30, 2018)
1. Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment

Polymers

Advanced Fibers &Materials Textiles

Total

Other
(Note 1)

Total

Amount posted in
Consolidated
quarterly
Adjustment
statements of(Note 2)income(Note 3)

Net sales
Net sales to outside customers

31,087

6,286

25,21962,593785

63,379

4,536

445

264

5,245

607

5,853


(5,853)63,379Inter-segment sales or transfers
Total

35,623

6,732

25,48367,8391,393

69,232(5,853)63,379Segment income (loss)
4,037
625
(24)
4,638
(203)
4,435
(27)
4,408
(Notes) 1. The Other segment includes business segments that are not included in the reporting segments, such as the design,
construction, and maintenance businesses of plant projects.
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.

-9-Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2019

(Significant subsequent events)(Partial acquisition and retirement of Class B shares)
UNITIKA LTD. resolved at the meeting of the Board of Directors held on November 8, 2018 to acquire part of
the Class B shares issued by the Company (worth 3,200 million yen) in exchange for cash payment in accordancewith the provision of Article 13-3, Item 6 of the Company’s Articles of Incorporation (Call Options, theConsideration for Which Is Money) and to retire the same in accordance with the provision of Article 178 of theCompanies Act subject to the said acquisition.
(1) Reasons for the acquisition
Considering the consolidated performance for the fiscal year ended March 31, 2018 and the progress of
consolidated performance for the fiscal year ending March 31, 2019, the Board of Directors has judged it
appropriate for the Company to begin redeeming Class B shares by using current net assets and cash anddeposits as soon as possible. Therefore, the Company has decided to acquire and retire part of Class B shares.
The action is designed to eliminate potential medium-and long-term financial problems, such as the burden
of future dividend payments for Class B shares, dilution of common shares, and outflow of large sums at an
unexpected time.
(2) Details of acquisition of Class B shares(i) Class of shares to be acquired: Class B shares(ii) Counterparty in the acquisition (shareholder): Mizuho Bank, Ltd., Mitsubishi UFJ Trust and Banking
Corporation(iii) Total number of shares to be acquired: 3,200 shares(Note) Regarding the above 3,200 shares, the number of shares to be acquired from each shareholder
shall be proportionally calculated in accordance with the Company’s Articles of Incorporation.
Accordingly, the Company will acquire 2,020 shares from Mizuho Bank, Ltd. and 1,180 sharesfrom Mitsubishi UFJ Trust and Banking Corporation.
(iv) Share acquisition value: 1,021,723.7 yen per share(Note) The above share acquisition value is 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).
(v) Total share acquisition value: 3,269,515,840 yen(vi) Acquisition date: February 28, 2019(3) Details of retirement of Class B shares(i) Class of shares to be retired: Class B shares(ii) Total number of shares to be retired: 3,200 shares(iii) Effective date of retirement: February 28, 2019
The retirement of Class B shares is subject to the acquisition of the shares by the Company as mentionedin (2) above.

- 10 -

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2019

3. Supplementary Information
1. Results and earnings forecast for fiscal year ending March 2019 (consolidated)(Millions of yen)

FY ended
March 2017
FY ended
March 2018
FY endingMarch 2019
Comparison
with prior year

Consolidated

Net sales

OperatingprofitOrdinary
profitProfit attributableto owners of parent

Full year

126,219

12,538

10,483

7,389

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

63,064
128,388
63,379131,500
314
3,111

5,797
11,658
4,408
10,500(1,389)(1,158)

5,334
9,972
4,257
9,000
(1,077)
(972)

4,752
8,081
3,875
6,500
(876)
(1,581)

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

Results forprevious
fiscal year

Results for
current
fiscal year

Polymers

Advanced
Materials

Fibers &Textiles

28,357

6,150

26,607

1,948



45.0
4,688
80.9

9.8
638
11.0

42.2
644
11.1

3.1
(185)
(3.2)



31,087

6,286

25,219785

63,379

49.0
4,037
91.6

9.9
625
14.2

39.8
(24)
(0.5)

1.2
(203)
(4.6)



100.0
4,408
100.0

2,729

136

(1,388)(1,162)



314

9.6

2.2

(5.2)

(59.7)



0.5

Operating profit

(650)

(12)

(669)

(17)

Increase/decrease fromprevious year (%)(13.9)(1.9)

Net sales to outside
customers
Component ratio (%)
Operating profit
Component ratio (%)
1st six-month Net sales to outside
period ended customers
Component ratio (%)
September
2018
Operating profit(Results)
Component ratio (%)
Net sales to outside
customers
1st six-month
period ended
September
2017(Results)

Comparison with the same
period of the previous year

Increase/decrease fromprevious year (%)

Other





Consolidated
total

Adjustment

63,064
100.0
5,797
100.0

12
0.2

(27)
(0.6)

(39)

(1,389)(24.0)

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 2017
1st six-month
period ended
September 2017
FY ended
March 2018
1st six-month
period ended
September 2018

Depreciation(Property,
plant andequipment)

R&D
expenditures

Interest-bearing
Financialliabilities (endaccount balanceof fiscal year)

Number ofpermanent
employees(persons)

Full year

4,825

4,292

3,142

109,327(1,826)

3,671

Q2

2,211

2,164

1,709

106,668

(613)

3,693

Full year

4,129

4,448

3,274

105,252(1,182)

3,677

Q2

3,296

2,113

1,752

103,915

(543)

3,734

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

FY ended
March 2017
1st six-month
period ended
September 2017
FY ended
March 2018
1st six-month
period ended
September 2018

Cash flow fromoperating activities

Cash flow frominvestment activities

Cash flow fromfinancing activities

Full year

18,111(4,158)(19,089)

36,890Q2

3,688(1,564)(15,652)

23,297Full year

9,739(3,231)(17,207)

26,169Q2

5,825(3,219)(1,859)26,861- 11 -Cash and cash equivalents
at end of fiscal year