Member of Financial Accounting Standards Foundation

Financial Report for Fiscal Year ended March 31, 2023 [Japanese GAAP] (Consolidated)
May 12, 2023
Company name: Unitika Ltd.
Listed stock exchange: Tokyo Stock Exchange
Code number: 3103 URL: https://www.unitika.co.jp/e/home.htm
Representative: Shuji Ueno, President and Chief Executive Officer
Contact: Masumi Fujimoto, General Manager of Accounting Department
TEL: +81-6-6281-5721
Expected date for holding a regular shareholders meeting: June 29, 2023
Expected date for submitting securities report: June 29, 2023
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, 2023 (April 1, 2022 to March 31, 2023)(1) Consolidated business results(Percentages represent changes from same period in previous year.)Net sales

Operating profit

Millions of yen

FY ended March 31, 2023
FY ended March 31, 2022
(Note) Comprehensive income% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen

117,9422.8
1,327(77.9)
1,069(83.3)
114,713
—
6,005
(0.2)
6,399
18.9
FY ended March 31, 2023: 1,905 million yen [(37.0%)]
FY ended March 31, 2022: 3,027 million yen [(20.6%)]
Diluted profit per
Profit per share
Return on equity
Return on asset
share
Yen

FY ended March 31, 2023
(3.13)FY ended March 31, 2022
33.32
(Reference) Equity in earnings/losses of affiliates

Yen

%

—
0.2
17.88
5.5
FY ended March 31, 2023: 17 million yen
FY ended March 31, 2022: 20 million yen

102
2,223

%

(95.4)(42.5)

Ratio of operating
profit to sales
%

%

0.6
3.4

1.1
5.2

(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, 2023
190,003
43,918FY ended March 31, 2022
191,399
43,071(Reference) Shareholders’ equity: FY ended March 31, 2023: 42,110 million yen
FY ended March 31, 2022: 41,296 million yen

22.2
21.6

332.02303.57(3) Consolidated cash flows situation
Cash flows fromoperating activities

Cash flows frominvesting activities

Balance of cash andcash equivalents atperiod end

Cash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

509
8,666

(8,092)(8,989)(1,657)(4,212)

9,612
18,415

FY ended March 31, 2023
FY ended March 31, 2022

2. Dividend payment
Annual dividend per share

FY ended March 31, 2022
FY ended March 31, 2023
FY ending March 31, 2024
(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 abovementioned Dividend payment refers to dividends paid to the holders of common stock. For details of dividend payment to the holdersof classified shares (unlisted), the rights of which are different from those of common stock, please refer to Dividend payment to the holders ofclassified shares mentioned below.

3. Forecast of consolidated performance for fiscal year ending March 31, 2024 (April 1, 2023 to March
31, 2024)(Percentages represent changes from same period in previous year.)Net sales
Millions of yen

Operating profit% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen

1st half of FY ending March
31, 2024 (cumulative)

62,0004.9

1,300 (14.1)

FY ending March 31, 2024

130,000

10.2

3,800 186.3

Profit per
share

%

Millions of yen

%

Yen

700

(82.0)

100(96.6)(0.73)

2,400

124.4

900

775.4

10.70

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying change ofscope of consolidation): Yes
New companies: — (company name)
Excluded companies: One (company name) Unitika Plant Engineering 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: Yes(ii) Changes of accounting policies other than the above: No(iii) Changes in accounting estimates: No(iv) Retrospective restatement: No(Note) For details, please refer to 3. Consolidated Financial Statements and Major Notes to Consolidated Financial Statements(5) Notes on consolidated financial statements (Changes in accounting policies) on page 11 of the attachment.

(3) Number of shares outstanding (Common stock)(i) Number of shares outstanding at end of term (including treasury share):Fiscal year ended March 31, 2023: 57,752,343 sharesFiscal year ended March 31, 2022: 57,752,343 shares(ii) Number of treasury shares at end of term:
Fiscal year ended March 31, 2023: 96,504 sharesFiscal year ended March 31, 2022: 95,761 shares(iii) Average number of shares outstanding during the term:
Fiscal year ended March 31, 2023: 57,656,240 sharesFiscal year ended March 31, 2022: 57,656,863 shares(Reference) Summary of non-consolidated performanceNon-consolidated performance for fiscal year ended March 31, 2023 (April 1, 2022 to March 31, 2023)(1) Non-consolidated business results(Percentages represent changes from same period in previous year.)Net sales

FY ended March 31, 2023
FY ended March 31, 2022

Millions of yen%

78,094
77,483

0.8—

Profit per share
FY ended March 31, 2023
FY ended March 31, 2022

Operating profit
Millions of yen

Total assets

Millions of yen

ProfitMillions of yen%

Millions of yen%

2,381 (58.9)
5,790
5.2

3,094
6,271

(50.7)
20.9

1,751
1,607

9.0
(50.8)

Diluted profit per share

Yen

25.47
22.64

(2) Non-consolidated financial situation

Ordinary profit

%

Yen

14.13
12.93

Net assets

Millions of yen

FY ended March 31, 2023
172,432
41,219FY ended March 31, 2022
172,788
40,485(Reference) Shareholders’ equity: FY ended March 31, 2023: 41,219 million yen
FY ended March 31, 2022: 40,485 million yen

Capital adequacy ratio

%

23.9
23.4

Net assets per shareYen

316.57289.51* The financial report is not subject to audit procedures by a certified public accountant or an independent
auditor.
* Explanation on appropriate use of forecasts of performance and other special items(Note on forward-looking statements)
The forward-looking statements in this document concerning forecasting of performance, etc. are based on currently available
information 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 3 of the attachment.
(Method to obtain information on the presentation of financial results)
The Company plans to hold a results presentation conference call for securities analysts and institutional investors on Thursday, May 25, 2023. It plans
to post on its website supplementary documents to the financial results to be distributed at the results presentation.

Dividend payment to the holders of classified shares
The breakdown of dividends per share related to classified shares, the rights of which are different from those ofcommon stock, is as follows:
Annual dividends
End of Q1
Yen

Class A share
FY ended March 31, 2022
FY ended March 31, 2023——

FY ending March 31, 2024 (forecast)—Yen

End of Q2

End of Q3

Yen

Yen

0.00
0.00

—
—

0.00

—

Yen

Class B share
FY ended March 31, 2022
FY ended March 31, 2023

—
—

0.00
0.00

FY ending March 31, 2024 (forecast)

—

0.00

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, 2023

 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........................................................................................................................................ 3(4) Future forecast .................................................................................................................................................... 3(5) Basic policy for profit distribution and dividends for the fiscal year ended March 31, 2023 and the fiscal year
ending March 31, 2024 ....................................................................................................................................... 3
2. Basic Approach to the Selection of Accounting Standards ...................................................................................... 3
3. Consolidated Financial Statements and Major Notes to Consolidated Financial Statements................................... 4(1) Consolidated balance sheets ............................................................................................................................... 4(2) Consolidated income statement and consolidated comprehensive income statement ........................................ 6(Consolidated income statement) ........................................................................................................................ 6(Consolidated comprehensive income statement) ............................................................................................... 7(3) Consolidated statements of changes in net assets ............................................................................................... 8(4) Consolidated statements of cash flow ............................................................................................................... 10(5) Notes on consolidated financial statements ...................................................................................................... 11(Notes on going concern assumption) ............................................................................................................... 11(Notes on significant changes in the amount of shareholders’ equity) ............................................................. 11(Changes in accounting policies) ...................................................................................................................... 11(Segment information, etc.)............................................................................................................................... 12(Per share information) ..................................................................................................................................... 14(Material subsequent events)............................................................................................................................. 14
4. Supplemental Materials .......................................................................................................................................... 15-1-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2023

1. Overview of Business Performance(1) Overview of business performance of the year
During the consolidated fiscal year under review (April 1, 2022 to March 31, 2023), the Japanese economy as a whole
showed a gradual recovering trend since the government’s coronavirus measures, which included movement restrictions,were eased little by little. However, the business environment surrounding manufacturing industries continued to be harshowing to soaring natural resource prices and a further decline in the value of the yen. On the other hand, the outlook of the
global economy remained uncertain because a rise in interest rates in each country depressed the economy.
Under these circumstances, the Unitika Group has been endeavoring to realize “Building a robust business portfolio,”“Promotion of the global business,” and “Reformation of the corporate culture and awareness,” its basic policy that assigns
top priority to the strengthening of a foundation toward its growth stage under “G-STEP30, the 1st,” a medium-term
management plan that is in its final year.
Consequently, in the consolidated fiscal year under review, the Group reported net sales of 117,942 million yen (up 2.8%
year on year), operating profit of 1,327 million yen (down 77.9% year on year), and ordinary profit of 1,069 million yen(down 83.3% year on year). Furthermore, profit attributable to owners of parent was 102 million yen (down 95.4% year onyear).
Here is an overview of the business results by segment.
[Polymers Segment]
The Polymers Segment suffered the impact of sluggish demand mainly for electric and electronic applications. Furthermore,
the segment saw profitability deteriorate greatly, despite revising its product prices, since raw material and fuel prices soared
faster than price hikes.
In the Films business, the global supply-demand balance relaxed in the packaging sector, while demand for electric andelectronic applications decreased sharply in the industrial sector. As a result, sales volume decreased in both sectors. On
the other hand, the business revised its selling prices and focused on sales of high-value-added products, such as“EMBLEM-HG.” Accordingly, the Films business saw net sales increase but profit decrease.
In the Plastics business, sales volume decreased in the engineering plastics sector owing to a delay in the recovery of
automobile production, a decline in capacity utilization of its customers’ plants in China, and sluggish demand due to an
economic slump in Europe. In the functional plastic sector, sales for electric and electronic applications declined in thelatter half of the current fiscal year. On the other hand, overseas sales increased. Accordingly, the Plastics business saw net
sales grow and profit decline.
Consequently, the Polymers segment posted operating profit of 3,475 million yen (down 47.7% year on year) on net salesof 51,536 million yen (up 1.4% year on year).
[Performance Materials Segment]
In the Performance Materials Segment, soaring raw material and fuel prices pushed up the cost of production, affecting
profitability significantly despite price hikes.
The Activated Carbon Fibers business had difficulty in increasing sales due to an inventory adjustment in the supply chain
for water purifier applications and a decline in capacity utilization in the electronics sector.
In the Glass Fibers business, in the industrial materials sector, sales for tent and sheet applications were steady. In theelectronic materials sector, sales of IC cloth declined drastically due to a worsening semiconductor market in the latter halfof the current fiscal year.
The Glass Beads business revised its product prices to cope with soaring fuel prices. However, the number of projects
decreased in road applications. Demand for retro-reflective material applications declined due to a weak economy in Europe.
Accordingly, sales for both applications were sluggish.
In the Non-woven Fabrics business, while marine distribution was returning to normal, export sales steadily grew. Sales forthe daily product sector, such as skin care applications, were weak. The business had difficulty in securing profitability due
to soaring raw material and fuel prices.
In the Industrial Fibers business, in Japan, sales for building and civil engineering applications were robust, but sales forsome filter and fishery applications were sluggish. Export sales were affected by an economic slump in Europe.
Consequently, the Performance Materials segment saw net sales grow and profit decline. The segment posted an operating
loss of 535 million yen (versus an operating profit of 24 million yen in the previous year) on net sales of 34,420 million yen(up 0.1% year on year).
[Fibers and Textiles Segment]
In the Garments, Lifestyle Materials and Bedding business, sales of uniforms and women’s clothing were on a recovery
path from the slump under the COVID-19 outbreak. Furthermore, net sales increased since the business revised its productprices. On the other hand, the cost of production jumped greatly due to soaring import costs caused by the depreciation of
the yen and surging raw material and fuel prices. Profitability deteriorated substantially despite price revisions.
Consequently, the Fibers & Textiles segment saw net sales grow and profit decline. The segment posted an operating lossof 1,535 million yen (versus an operating loss of 610 million yen in the previous year) on net sales of 31,917 million yen(up 8.4% year on year).
[Others]
The Others category posted an operating loss of 69 million yen (versus an operating loss of 55 million yen in the previousyear) on net sales of 68 million yen (up 18.1% year on year).

-2-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2023

(2) Overview of financial position
Total assets decreased by 1,395 million yen from the end of the previous consolidated year to 190,003 million yen mainly
due to a decline in cash and deposits, notes receivable-trade, and accounts receivable-trade despite a rise in inventories andproperty, plant and equipment. Liabilities fell by 2,242 million yen from the end of the previous consolidated year to
146,085 million yen. This was primarily due to a decrease in notes and accounts payable-trade. Net assets grew by 847
million yen from the end of the previous consolidated year to 43,918 million yen. This was mainly due to a rise in foreign
currency translation adjustment and remeasurements of defined benefit plans despite a decline in capital surplus caused by
the acquisition and cancellation of Class B shares.
(3) Overview of cash flow
Cash and cash equivalents (hereinafter referred to as “net cash”) as of March 31, 2023 decreased by 8,803 million yen fromthe end of the previous consolidated year to 9,612 million yen.
(Net cash provided by [used in] operating activities)
Net cash provided by operating activities amounted to 509 million yen (down 94.1% year on year) during the current
consolidated fiscal year mainly due to a decrease in trade receivables despite a rise in inventories.
(Net cash provided by [used in] investing activities)
Net cash used in investing activities amounted to 8,092 million yen during the current consolidated fiscal year (8,989
million yen used in the previous consolidated fiscal year) mainly 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 1,657 million yen during the current consolidated fiscal year (4,212
million yen used in the previous consolidated fiscal year) mainly due to repayment of borrowings and the acquisition andcancellation of Class B shares.
(4) Future forecast
The Unitika Group has formulated “G-STEP30, the 2nd,” a new three-year medium-term management plan that starts fromfiscal year ending March 2024.
As a basic policy, the Group is committed to continue to deal with missions under “G-STEP30,” its long-term vision, andwill take steps to achieve the rebuilding of business portfolios, promotion of global business development, and improvementof the business foundation.
Although the outlook of business still remains uncertain due to the impact of the prolonged military invasion of Ukraine by
Russia and economic slump caused by a rise in interest rates in Europe and the U.S., the Unitika Group is determined tosteadily implement each measure stated in its medium-term management plan and to continuously work hard to upgrade abusiness base for “growth.”
The Group forecasts that it will post net sales of 130,000 million yen, operating profit of 3,800 million yen, ordinary profitof 2,400 million yen, and profit attributable to owners of parent of 900 million yen in the year ending March 31, 2024.
(5) Basic policy for profit distribution and dividends for the fiscal year ended March 31, 2023 and the fiscal year ending
March 31, 2024
The Unitika Group considers profit distribution to its shareholders to be an important aspect of its business, but management
intends to pass dividends on common stock for the fiscal year ended March 31, 2023, giving due consideration to the businessresults 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 theCompany’s financial results. At the same time, the Company intends to decide dividend payment after considering theimprovement of its financial position and enhancing of internal reserve for securing profit for shareholders from a long-term
perspective.
Regarding dividends for the classified shares issued through third party allocations in July 2014, the Company plans toprovide the following dividends based on the classified share issuance guidelines determined at the time of 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 thecomparability of performance with competitors in Japan.

-3-Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2023

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, 2022)
AssetsCurrent assets
Cash and deposits
Notes receivable-trade
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-4-

Current consolidated
fiscal year
(March 31, 2023)

18,985
6,148
23,34629,3983,134(87)
80,926

10,5483,094
20,01035,7395,506(53)
74,845

12,573
19,2691,038
62,58471
8,590
104,128

13,88025,996
1,019
62,605
49
4,761
108,313

2,238
2,238

2,171
2,171

2,462
7
181
28
238
1,292
(104)
4,106
110,472
191,399

2,608
8
95
28
250
1,792
(110)
4,673
115,158
190,003

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2023

(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2022)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of long-term borrowings
Lease liabilities
Income taxes payable
Contract liabilities
Provision for bonuses
Provision for product repair
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Deferred tax liabilities for land revaluation
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-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-

Current consolidated
fiscal year
(March 31, 2023)

16,4502,065
91,647
74
598
321
1,742
35
8,832
121,768

15,269
4,124
2,643
71
202
326
1,554
35
8,749
32,977

177
373
8,027
3,169
14,628182
26,559148,328

86,671
307
8,450
3,139
14,375
164
113,107
146,085100
12,301
27,597(57)
39,942100
11,476
27,467(57)
38,986

435
(1)
6,313
(4,184)(1,208)

544
4
6,244
(3,452)
(217)

1,354

3,123

1,774
43,071
191,399

1,808
43,918190,003

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2023

(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
Share of profit of entities accounted for using equity method
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Origination costs for syndicated loans
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
Impairment loss
Loss on disposal of non-current assets
Loss on tax purpose reduction entry of non-current assets
Business restructuring expenses
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit (loss)(Loss) attributable to non-controlling interests
Profit attributable to owners of parent-6-

Previous consolidated
fiscal year
(April 1, 2021 toMarch 31, 2022)
114,71386,85827,85521,850
6,005

Current consolidated
fiscal year
(April 1, 2022 toMarch 31, 2023)
117,942
94,126
23,81622,489
1,327

42
60
20
1,420
397
1,940

36
62
17
1,395
420
1,932

1,104
—
441
1,546
6,399

1,051
575
563
2,190
1,069

96
—
556
653

299
395
—
694

2,169
1,056
398
41
0
3,667
3,385
1,030
156
1,187
2,198
(25)
2,223

—
873
—
154
—
1,027
736
416
338
755
(18)
(121)
102

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2023

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

Profit (loss)
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,
net of tax
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests

Previous consolidated
fiscal year
(April 1, 2021 toMarch 31, 2022)
2,198

Current consolidated
fiscal year
(April 1, 2022 toMarch 31, 2023)
(18)

(44)

109

(17)
—
276

5
(69)
887

615

990

828
3,027

1,924
1,905

2,966

1,872

60

33

-7-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2023

(3) Consolidated statements of changes in net assets
Previous consolidated fiscal year (April 1, 2021 to March 31, 2022)(Unit: Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus
100

Retained earnings

13,126

Total shareholders’equityTreasury shares

25,695(57)

38,865

Changes in items during period
Dividends of surplus

(321)

(321)

Profit attributable to owners of parent

2,223

2,223

Purchase of treasury shares
Cancellation of treasury shares(826)

Capital increase of consolidated
subsidiaries

1

(826)

(826)

826

—
1

Reversal of revaluation reserve for land

(0)

(0)

Net changes in items other thanshareholders’ equity
Total changes in items during period

—

(824)

1,901

(0)

1,076

Balance at end of period

100

12,301

27,597(57)

39,942

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred
gains orlosses onhedges

Revaluation
reserve for
land

480

16

6,313

Total
NonForeign
Reaccumulated
controllingcurrency measurements
otherof definedinterests
translation
comprehenadjustment benefit plans
sive income(4,374)(1,823)

611

1,715

Total net
assets41,192

Changes in items during period
Dividends of surplus(321)

Profit attributable to owners of parent

2,223

Purchase of treasury shares(826)

Cancellation of treasury shares—

Capital increase of consolidated
subsidiaries

1

Reversal of revaluation reserve for land(0)

Net changes in items other thanshareholders’ equity

(44)

(17)

0

189

615

742

59

801

Total changes in items during period

(44)

(17)

0

189

615

742

59

1,878

Balance at end of period

435

(1)

6,313

(4,184)(1,208)

1,354

1,774

43,071-8-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2023

Current consolidated fiscal year (April 1, 2022 to March 31, 2023)(Unit: Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus
100

Retained earnings

12,301

Total shareholders’equityTreasury shares

27,597(57)

39,942

Changes in items during period
Dividends of surplus

(302)

(302)

Profit attributable to owners ofparent102

102

Purchase of treasury shares
Cancellation of treasury shares

(825)

(825)

(825)

825

—

Capital increase of consolidated
subsidiaries
Reversal of revaluation reserve for
land

69

69

Net changes in items other thanshareholders’ equity
Total changes in items during
period

—

(825)

(130)

(0)

(955)

Balance at end of period

100

11,476

27,467(57)

38,986

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive income

Noncontrollinginterests

Total net
assets

435

(1)

6,313

(4,184)(1,208)

1,354

1,774

43,071

Changes in items during period
Dividends of surplus(302)

Profit attributable to owners ofparent102

Purchase of treasury shares(825)

Cancellation of treasury shares—

Capital increase of consolidated
subsidiaries
Reversal of revaluation reserve forland
Net changes in items other thanshareholders’ equity

69
109

5

(69)

732

990

1,769

33

1,803

Total changes in items during
period

109

5

(69)

732

990

1,769

33

847

Balance at end of period

544

4

6,244

(3,452)

(217)

3,123

1,808

43,918-9-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2023

(4) Consolidated statements of cash flow
(Unit: Millions of yen)Previous consolidated
fiscal year
(April 1, 2021 toMarch 31, 2022)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Loss on tax purpose reduction entry of non-current assets
Business restructuring expenses
Insurance claim income
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for product repair
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 sales 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
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 and equipment
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
Purchase of treasury shares (classified 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- 10 -

Current consolidated
fiscal year
(April 1, 2022 toMarch 31, 2023)

3,385
5,246
2,169
398
41
(556)
34
884
(4)
(29)
1,104
1,056
(96)
—
(144)
(3,176)
2,581(2,023)
10,873102(1,146)(1,320)
157
8,666

736
5,421
—
—
154
—
(27)
678
(0)
(191)
1,051
873
(299)
(395)
6,648
(6,045)(1,571)(4,275)2,756
98(1,055)(1,290)
—
509

285
(10)
2
(8,105)
248
(687)
(723)
(8,989)

58
(11)
438
(7,958)
472
(565)
(526)
(8,092)(99)
20(2,861)
(321)
(826)
(122)
(4,212)357(4,177)22,593
18,415

2,059
89,173(91,682)
(302)
(825)
(79)
(1,657)437(8,803)
18,4159,612

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2023

(5) Notes on consolidated financial statements(Notes on going concern assumption)
Not applicable.
(Notes on significant changes in the amount of shareholders’ equity)
Unitika Ltd. received from Mizuho Bank, Ltd., who is an owner of its Class B shares (807 shares), a notice
requesting the Company to acquire all of its Class B shares it holds in exchange for money based on the regulation
as defined in Article 13-3, Paragraph 5 of its Articles of Incorporation (Right to Request Acquisition in Exchange
for Money). The Company completed the payment of money and acquisition of the subject Class B shares basedon the acquisition request on March 15, 2023.
Furthermore, the Company resolved to cancel Class B shares it acquired in accordance with Article 178 of theCompanies Act at a meeting of Board of Directors held on March 28, 2023 and completed the cancellation of the shareson the same day.
(1) Details of Class B shares acquired
a. Type of shares acquired: Class B sharesb. Seller of the shares (shareholder): Mizuho Bank, Ltd.
c. Total number of shares acquired: 807 sharesd. Acquisition value: 1,022,699.3 yen per share(Note) The above acquisition value is calculated by adding the sum of daily portions of accrued preferred dividend
per share (22,699.3 yen) to the amount to be paid per Class B share (1,000,000 yen).
e. Total amount of acquisition: 825,318,335 yen
f. Acquisition date: March 15, 2023
(2) Details of Class B shares cancelled
a. Type of shares cancelled: Class B sharesb. Total number of shares cancelled: 807 sharesc. Effective date of cancellation: March 28, 2023
(3) Impact on net assets after cancellation of shares
Amount of capital surplus decreased: 825,318,335 yen(Changes in accounting policies)(Application of Implementation Guidance on Accounting Standard for Fair Value Measurement)
Implementation Guidance on Accounting Standard for Fair Value Measurement (ASBJ Guidance No. 31, June 17,2021; hereinafter “Fair Value Measurement Standard Implementation Guidance”) has been applied from the beginningof the consolidated fiscal year ended March 31, 2023. In accordance with the transitional treatment prescribed in
Paragraph 27-2 of the Fair Value Measurement Standard Implementation Guidance, the Company has decided to apply
the new accounting policies set forth by the Fair Value Measurement Standard Implementation Guidance into the future.
These changes had no impact on the consolidated financial statements.

- 11 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2023

(Segment information, etc.)[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 ofmanagerial 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 business activities according to thestrategies.
Unitika consists of segments by product and service based on divisions. The following three are its reportablesegments: Polymers, Performance Materials, and Fibers & Textiles.
The Polymers segment manufactures and markets films and resins. The Performance Materials segment makes
and sells glass fibers, non-woven fabrics, and so on. The Fibers & Textiles segment produces and distributes
various types of fibers (threads, cotton, textiles, 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 pursuant to accounting policies adopted for
preparation of consolidated financial statements.
Inter-segment earnings and transfers are based on prevailing market prices.

3. Information on the amount of net sales, profit or loss, assets and other items by reportable segment
Previous consolidated fiscal year (April 1, 2021 to March 31, 2022)
Reportable segment

Polymers

Performance Fibers &Materials
Textiles

Total

Other
(Note 1)

Total

(Unit: Millions of yen)Amountposted inConsoliAdjustment
dated(Note 2)
financialstatements(Note 3)

Net sales
Net sales to outside
50,837
34,37229,446
114,655
58
114,713—
114,713customers
Inter-segment sales or
5,312
1,708
215
7,236
—
7,236
(7,236)—transfer
Total
56,15036,08029,661
121,89258
121,950(7,236)
114,713
Segment income (loss)
6,645
24
(610)
6,060
(55)
6,004
1
6,005
Segment assets
91,451
59,651
24,356
175,459598
176,058
15,341
191,399
Other items
Depreciation and
2,715
1,697
138
4,551
3
4,554
692
5,246
amortization
Increase in property, plantand equipment and
3,919
2,239
218
6,377
15
6,393
2,036
8,429
intangible assets(Notes) 1. The Other segment includes business segments that are not included in reportable segments.
2. Adjustment details are as follows.
(1) Adjustment of 1 million yen for Segment income (loss) is attributable to the elimination of inter-segment transactions.
(2) Adjustment of 15,341 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 692 million yen for Depreciation and amortization is depreciation and amortization of common assets thatare not allocated to each reportable segment.
(4) Adjustment of 2,036 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 profit in the consolidated income statement.

- 12 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2023

Current consolidated fiscal year (April 1, 2022 to March 31, 2023)
Reportable segment
Performance Fibers &Polymers
Materials
Textiles

Total

Other
(Note 1)

Total

(Unit: Millions of yen)Amountposted inConsoliAdjustment
dated(Note 2)
financialstatements(Note 3)

Net sales
Net sales to outside
51,53634,42031,917
117,874
68
117,942—
117,942
customers
Inter-segment sales or
5,889
1,945
160
7,996
—
7,996
(7,996)—transfer
Total
57,42636,36532,078125,870
68
125,939(7,996)
117,942
Segment income (loss)
3,475
(535)
(1,535)
1,404
(69)
1,334
(7)
1,327
Segment assets
98,38862,23920,209180,837
297
181,135
8,868
190,003
Other items
Depreciation and
3,007
1,349
185
4,542
4
4,547
874
5,421
amortization
Increase in property, plantand equipment and
4,258
2,104
267
6,631
27
6,658
1,596
8,254
intangible assets(Notes) 1. The Other segment includes business segments that are not included in reportable segments.
2. Adjustment details are as follows.
(1) Adjustment of (7) million yen for Segment income (loss) is attributable to the elimination of inter-segment transactions.
(2) Adjustment of 8,868 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 874 million yen for Depreciation and amortization is depreciation and amortization of common assets thatare not allocated to each reportable segment.
(4) Adjustment of 1,596 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 profit in consolidated income statement.

- 13 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2023

(Per share information)
Previous consolidated fiscal year
(April 1, 2021 to March 31, 2022)

Current consolidated fiscal year
(April 1, 2022 to March 31, 2023)

Net assets per share

303.57 yen

332.02 yen

Profit (loss) per share

33.32 yen

(3.13) yen

Profit per share after full
dilution17.88 yen—

(Notes) 1. The Company did not present profit per share after full dilution for the current consolidated fiscal year since it posted a loss
per share, although there are potential common shares with dilutive effects.
2. The basis for the calculation of net assets per share is as follows:

Previous consolidated
fiscal year
(March 31, 2022)

Current consolidated
fiscal year
(March 31, 2023)

Total net assets (millions of yen)

43,071

43,918Amounts deducted from the total net assets (millions of yen)

25,56824,775[of which amounts to be paid in for classified shares(millions of yen)][23,491][22,684]

[302]

[283]

[1,774][1,808]17,502

19,14257,65657,655[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
stock (millions of yen)
Number of common stock at the end of the fiscal year used
for calculating net assets per share (thousand shares)

3. The basis for the calculation of profit (loss) per share and profit per share after full dilution is as follows:

Previous consolidated
fiscal year
(April 1, 2021 toMarch 31, 2022)

Current consolidated
fiscal year
(April 1, 2022 toMarch 31, 2023)

Profit (loss) per share
Profit attributable to owners of parent (millions of yen)Amount not attributable to common stockholders(millions of yen)

2,223

102

302

283

[of which preferred dividends (millions of yen)]

[302]

[283]

1,921

(180)

57,65657,656302—[of which preferred dividends (millions of yen)]

[302]

—

Increased number of common stock (thousand shares)

66,732—[of which preferred shares (thousand shares)][66,732]—

Profit (loss) attributable to common stock owners of parent(millions of yen)
Average number of common stock during the fiscal year
(thousand shares)
Profit per share after full dilution
Net diluted profit attributable to owners of parent (millionsof yen)Outline of potential common shares that were not includedin the calculation of profit per share after full dilution due totheir anti-dilutive effect(Material subsequent events)
Not applicable.

- 14 -——

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2023

4. Supplemental Materials(1) Results (consolidated)(Millions of yen)
OperatingprofitNet sales
Consolidated

FY ended March 2022

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

FY ended March 2023
FY ending March 2024
Comparison with prioryear

114,713
59,105
117,94262,000130,000
2,894
12,057

Profit attributableto owners ofparent
2,223
2,909
102
100
900
(2,809)797

Ordinary
profit

6,005
1,514
1,327
1,300
3,800
(214)
2,472

6,399
3,887
1,069
700
2,400
(3,187)1,330(2) Segment information (consolidated)(Millions of yen)

Net sales to outside
customers
Results for
FY ended
Component ratio (%)
previous fiscal
March 2022
year
Operating profit
Component ratio (%)
Net sales to outside
customers
Results for
FY ended
Component ratio (%)
current fiscal
March 2023
year
Operating profit
Component ratio (%)
Net sales to outside
customers
Increase/decrease
from previous year
Comparison with previous(%)
year
Operating profit
Increase/decrease
from previous year(%)
Net sales to outside
customers(Forecast) Component ratio (%)
Operating profit
Component ratio (%)
Net sales to outside
FY endingcustomers
March 2024
Increase/decrease(Forecast)from previous yea
Comparison (%)
Operating profit
Increase/decrease
from previous yea(%)

Elimination
Consolidatedor
total
corporate

Polymers

Performance
Materials

Fibers &Textiles

50,837

34,37229,446

58—

114,713

44.3
6,645
110.7

30.0
24
0.4

25.7
(610)
(10.2)

0.1
(55)
(0.9)

—
1
0.0

100.0
6,005
100.0

51,53634,42031,917

68—

117,942

43.7
3,475
261.9

29.2
(535)
(40.3)

27.1(1,535)(115.7)

0.1
(69)
(5.2)

—
(7)
(0.6)

100.0
1,327
100.0

699

47

2,471

10

—

3,229

1.4

0.1

8.4

18.1

—

2.8

(3,170)

(560)

(925)

(13)

(8)

(4,678)(47.7)————(77.9)

57,80037,00035,100100—

130,000

44.5
5,000
131.6

28.5
(500)
(13.2)

27.0(600)(15.8)

0.1
(100)
(2.6)

—
—
—

100.0
3,800
100.0

6,263

2,579

3,182

31

—

12,057

12.2

7.5

10.0

45.5

—

10.2

1,524

35

935

(30)

7

2,472

43.9

—

—

—

—

186.3

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)
7,387
4,517
7,614
4,672
7,641
4,729

Capitalexpenditures

FY ended March 2021 Full year
FY ended March 2022 Full year
FY ended March 2023 Full year

Interestbearing
liabilities (endof fiscal year)
3,639
96,7983,601
93,8903,757
93,440

R&D
expenditures

Financialaccountbalance(1,054)(1,002)(952)

Number ofpermanent
employees(persons)
3,007
3,037
2,944

(4) Cash flow (consolidated)(Millions of yen)
FY ended March 2021 Full year

Cash flow fromoperating activities
14,869Cash flow frominvesting activities(6,171)- 15 -Cash flow from
Cash and cash equivalents
financing activities
at end of fiscal year
(4,141)
22,593

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2023

FY ended March 2022 Full year
FY ended March 2023 Full year

8,666
509

(8,989)(8,092)- 16 -(4,212)(1,657)

18,4159,612