Member of Financial Accounting Standards Foundation

Financial Results for the 3rd Quarter of the Fiscal Year Ending March 31, 2024
February 7, 2024
Listed stock exchanges: Tokyo Stock Exchange
Company name: Unitika Ltd.
Code number: 3103
URL: https://www.unitika.co.jp/e/home.htm
Representative: Shuji Ueno, President and Chief Executive Officer
Contact: Masumi Fujimoto, General Manager of Accounting Department
TEL: +81-6-6281-5721
Expected submission of quarterly report: February 13, 2024
Expected commencement date for paying dividend: –Preparation of supplementary explanation documents for quarterly financial results: No
Holding of an analyst meeting for quarterly financial results: No(Figures rounded down to nearest million yen.)
1. Consolidated performance for 3rd quarter of fiscal year ending March 31, 2024 (April 1, 2023 to December 31, 2023)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)
Quarterly profit
Operating profit
Ordinary profit
attributable to owners ofparentNet sales
%
(1.9)
5.0

Millions of yen

Q3 of FY ending March 31, 2024
Q3 of FY ended March 31, 2023

(Note) Comprehensive income

86,50588,173%
(63.9)

Millions of yen(2,618)1,769%

(46.6)

Millions of yen(2,114)
2,414

Millions of yen(2,859)1,101%

(64.9)

Q3 of FY ending March 31, 2024: (1,754) million yen [%]Q3 of FY ended March 31, 2023: 3,898 million yen [2.7%]
Quarterly profit per share

Diluted quarterly profit per share
Yen

8.83

Yen
(53.29)15.15

Q3 of FY ending March 31, 2024
Q3 of FY ended March 31, 2023

(2) Consolidated financial situation

Q3 of FY ending March 31, 2024
FY ended March 31, 2023

(Reference) Shareholders’ equity

Total assets

Net assets

Millions of yen
191,802
190,003

Millions of yen
41,88043,918

Capital adequacy ratio
%
20.9
22.2

3rd quarter of fiscal year ending March 31, 2024: 40,159 million yen
Fiscal year ended March 31, 2023: 42,110 million yen

2. Dividend payment
Annual dividend per share
End of Q1

End of Q2Yen

FY ended March 31, 2023
FY ending March 31, 2024End of Q3
Yen
0.00



0.00



Year end
Yen

FY ending March 31, 2024 (forecast)

Total
Yen
0.00

Yen
0.00

0.00

0.00

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

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

FY ending March 31, 2024

Operating profit

Ordinary profit

Profit attributable toowners of parent

Profit per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

120,000

1.7(2,400)(1,400)

(2,200)(43.07)(Note) Revision of the latest forecasts of operational results: No

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): No
New companies:  (company name)
Excluded companies:  (company name)(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):3rd quarter of the fiscal year ending March 31, 2024: 57,752,343 sharesFiscal year ended March 31, 2023: 57,752,343 shares Number of treasury stocks at end of term
3rd quarter of the fiscal year ending March 31, 2024: 96,818 sharesFiscal year ended March 31, 2023: 96,504 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
3rd quarter of the fiscal year ending March 31, 2024: 57,655,657 shares
3rd quarter of the fiscal year ended March 31, 2023: 57,656,347 shares* This brief report of quarterly financial statements is not subject to audit procedures by a certified public accountant or an
independent auditor.
* Explanation on appropriate use of forecasts of performance and other special items(Note on forward-looking statements)
The forward-looking statements in this document concerning forecasting of performance etc. are based on currently available information andassumptions considered by the Company to be reasonable. Such statements are neither promises nor guarantees of future performance. The
actual performance may be significantly different from forecasts due to numerous factors. Concerning assumptions used as a basis forforecasting business performance and precautionary statements when using the forecast of performance, please refer to “1. Qualitative
Information on Quarterly Results (3) Explanation of future forecast information including forecast of consolidated performance” on page 3 ofthe attachment.

Member of Financial Accounting Standards Foundation

Dividend payment to the holders of class shares
The breakdown of dividends per share related to class shares, the rights of which are different from those of common stock, is asfollows:
Annual dividends
End of Q1
Class A share
FY ended March 31, 2023
FY ending March 31, 2024

Yen
—
—

End of Q2
Yen
0.00
0.00

End of Q3
Yen——

FY ending March 31, 2024 (forecast)Class B share
FY ended March 31, 2023
FY ending March 31, 2024
FY ending March 31, 2024 (forecast)

Yen
—
—

Yen
0.00
0.00

Yen
—
—

Year end

Total

Yen
12,000.00

Yen
12,000.00

12,000.00

12,000.00

Yen
23,740.00

Yen
23,740.00

23,740.00

23,740.00

Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2024

 Table of contents for the attachment
1. Qualitative Information on Quarterly Results ............................................................................................................2(1) Explanation of operational results........................................................................................................2(2) Explanation of financial position .........................................................................................................3(3) Explanation of future forecast information including forecast of consolidated performance ..............3
2. Quarterly Consolidated Financial Statements and Main Notes..................................................................................4(1) Quarterly consolidated balance sheets .................................................................................................4(2) Quarterly consolidated statements of income and quarterly consolidated statements ofcomprehensive income ..............................................................................................................................6
Quarterly consolidated statements of income
Nine-month period ended December 31, 2023 ................................................................................................ 6
Quarterly consolidated statements of comprehensive income
Nine-month period ended December 31, 2023 ................................................................................................ 7(3) Notes on quarterly consolidated financial statements ..........................................................................8(Notes on assumption of going concern) ...................................................................................................8(Notes on significant changes in shareholders’ equity) .............................................................................8(Segment information, etc.) .......................................................................................................................8-1-

Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2024

1. Qualitative Information on Quarterly Results(1) Explanation of operational results
During the first nine-month period of the consolidated fiscal year under review (April 1, 2023 to December 31,2023), the Japanese economy as a whole continued showing a recovery trend. Business sentiment improved due torises in outing demand and Inbound tourism demand in the non-manufacturing industry and a recovery in thenumber of cars manufactured in the manufacturing industry. On the other hand, personal consumption remained
flagging since consumers grew thrifty because of rising prices. In addition, looking at overseas, the European
economy continued to be in the doldrums owing to inflation and consequent high interest rates, while the Chinese
economy slowed to recover from the economic slowdown associated with the deterioration of the real estatemarket. These gave negative effects on consumption demand.
Under these circumstances, the Unitika Group announced “G-STEP30, 2nd,” a new medium-term management
plan, in May 2023 and implemented measures consisting of “Rebuilding a business portfolio,” “Promotion of the
global business,” and “Improvement of business foundation,” the basic policies of the new medium-term
management plan.
Meanwhile, in the first nine-month period of the consolidated fiscal year, the Unitika Group reported net sales of86,505 million yen (down 1.9% year on year) owing to a fall in demand caused by the deterioration of businesssentiment.
The Group posted an operating loss of 2,618 million yen (versus an operating profit of 1,769 million yen in theprevious year) since profitability worsened due to the impact of a rise in production cost caused by continuing
high raw material and fuel prices and a weaker yen as well as a decline in sales. Furthermore, as the Group
recorded a foreign-exchange valuation gain of assets denominated in foreign currencies due to further depreciationof the yen, ordinary loss was 2,114 million yen (versus an ordinary profit of 2,414 million yen in the previousyear) and loss attributable to owners of parent amounted to 2,859 million yen (versus profit attributable to ownersof parent of 1,101 million yen in the previous year).
Here is an overview of the business results by segment.
The Unitika Group changed its reporting segment of some consolidated subsidiaries in the first quarter of thecurrent consolidated fiscal year. Therefore, the Group reported financial results for the corresponding year-earlier
period after being retrospectively restated based on the segment classification after the change for comparison
purposes. For details, please refer to 2. Quarterly Consolidated Financial Statements and Main Notes (3) Notes onquarterly consolidated financial statements (Segment information, etc.).
[Polymers Segment]
In the Polymers Segment, net sales increased due to the effect of the price revisions despite a fall in sales volume
in many products. However, profitability worsened because the cost increase exceeded the effect of the pricerevisions. The increase was caused by a production decrease associated with a decline in sales volume.
In the Films business, looking at the packaging application, there were still negative effects from a fall in sales offood products caused by inflation in the Japanese market. On the other hand, in the overseas market, sales of“EMBLEM-HG,” a barrier nylon film, grew steadily. However, profitability fell since competition withforeign-made products intensified, causing sales prices to decline in the Southeast Asia market. In the industrial
application, there were signs of recovery in demand in the third quarter, but sales continued decreasing.
Accordingly, the Films business saw net sales increase but operating profit decrease.
In the Plastics business, sales for electric and electronic component, machinery component, and leisure productapplications were affected by sluggish demand for final products in China and Europe. On the other hand, sales
for automobile component applications grew along with a recovery in automobile production. Sales of functional
plastics for adhesive agents and coating materials were robust. In the third quarter, profitability improved due tothe effect of price revisions, but the improvement was not big enough to fully offset the decline in the first half.
Accordingly, the Plastics business saw net sales grow but operating profit decline.
Consequently, the Polymers Segment posted an operating profit of 183 million yen (down 94.3% year on year) on
net sales of 38,527 million yen (up 2.4% year on year).
[Performance Materials Segment]
In the Performance Materials Segment, sales continued decreasing in various applications. The segment saw both
net sales and operating profit decline and accordingly posted an operating loss. This was because profitability
worsened due to the effect of production adjustment associated with a fall in sales.
In the Activated Carbon Fibers business, sales for mainstay water purifier applications slightly decreased in Japan,
and sales in the environmental application declined due to a weak electronic market.
In the Glass Fibers business, sales in the industrial materials application remained robust. However, overall sales
of IC cloth in the electronic materials application declined despite demand recovering in some applications in thethird quarter. Profitability deteriorated since the sales decrease resulted in a continuing fall in capacity utilization
at its plant.
In the Glass Beads business, sales for road applications continued decreasing due to a fall in the number ofprojects associated with bad weather. In addition, sales for industrial applications, such as blast and filler, andsales for retro-reflective material application declined due to lingering sluggish demand.
In the Non-woven Fabrics business, especially, sales for the daily product applications, such as filters and skincare, and sales for primary industry application decreased. Despite the price revision, profitability worsened since-2-Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2024

the cost increase caused by high raw material and fuel prices and a cutback in production exceeded thecontribution of price increase.
In the Industrial Fibers business, sales of polyester staple fibers, mainly for filter application, recovered, but salesof High - strength polyester yarn for construction material applications decreased. Profitability deteriorated since
raw material and fuel prices remained high.
Consequently, the Performance Materials Segment posted an operating loss of 2,047 million yen (versus an
operating loss of 51 million yen in the previous year) on net sales of 25,003 million yen (down 4.6% year onyear).
[Fibers and Textiles Segment]
In the Garments, Lifestyle Materials and Bedding business, sales in the uniform application, a mainstay of thisbusiness, remained steady in the third quarter. However, sales were slightly sluggish in other applications.
Overseas sales were on the path of recovery compared to the previous year, but the business had difficulty inincreasing sales for industrial materials applications. Operating loss decreased from the previous year since thebusiness saw profitability improve further as a result of efforts not only to revise its product prices but also to
reduce costs.
Consequently, the Fibers & Textiles Segment posted an operating loss of 703 million yen (versus an operating lossof 1,343 million yen in the previous year) on net sales of 22,939 million yen (down 5.6% year on year).
[Others]
The Others category posted an operating loss of 68 million yen (versus an operating loss of 41 million yen in theprevious year) on net sales of 35 million yen (down 36.6% year on year).
(2) Explanation of financial position
Total assets increased by1,798 million yen from the end of the previous consolidated year to 191,802 million yen
mainly due to a rise in property, plant and equipment. Liabilities grew by 3,837 million yen from the end of theprevious consolidated year to 149,922 million yen. This was primarily due to an increase in notes and accounts
payable-trade despite a decline in short-term borrowings. Net assets diminished by 2,038 million yen from the endof the previous consolidated year to 41,880 million yen. This was mainly due to a decrease in retained earnings
caused by the posting of loss attributable to owners of parent.
(3) Explanation of future forecast information including forecast of consolidated performance
The Company did not revise the forecast of its consolidated financial results for the full year of the fiscal year
ending March 31, 2024 announced in the “Brief Report on Financial Results for the 2nd Quarter of the Fiscal YearEnding March 31, 2024” on November 9, 2023.

-3-

Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2024

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly consolidated balance sheets
Previous consolidated
fiscal year
(March 31, 2023)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade, andcontract assets
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Machinery, equipment and vehicles, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-(Unit: Millions of yen)Q3 of current consolidated
fiscal year ending March 2024
(December 31, 2023)

10,548

11,691

23,10422,99135,7395,506(53)
74,84535,0754,711(46)
74,42325,99662,605
19,711
108,31327,86062,762
19,987
110,610

2,171
2,171

2,071
2,071

4,783
(110)
4,673
115,158
190,003

4,815
(118)
4,696
117,379
191,802

Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2024

(Unit: Millions of yen)Q3 of current consolidated
fiscal year ending March 2024
(December 31, 2023)

Previous consolidated
fiscal year
(March 31, 2023)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for product repairs
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-5-

15,269
4,124
2,643
202
1,554
35
9,147
32,977

17,964
3,095
2,630
151
774
35
10,22734,87986,671
14,375
12,060113,107
146,085

86,71014,734
13,598115,042
149,922100
11,476
27,467(57)
38,986100
11,47624,324(57)
35,843

544

842

4
6,244
(3,452)
(217)
3,123
1,808
43,918190,003(4)
6,244(2,637)
(128)
4,316
1,720
41,880191,802

Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2024

(2) Quarterly consolidated statements of income and quarterly consolidated statements of comprehensive income(Quarterly consolidated statements of income)(Nine-month period ended December 31, 2023)(Unit: Millions of yen)
Nine-month period
Nine-month period
ended December 31, 2022
ended December 31, 2023
(April 1, 2022 to(April 1, 2023 to
December 31, 2022)
December 31, 2023)
88,17386,505Net sales
69,37873,144
Cost of sales
18,795
13,360Gross profit
17,025
15,979Selling, general and administrative expenses
1,769(2,618)Operating profit (loss)
Non-operating income
3137Interest income
6064Dividend income
Share of profit of entities accounted for using equity—
14
method1,391
1,341
Foreign exchange gains
332
221
Other
1,816
1,679
Total non-operating income
Non-operating expenses
791
793
Interest expenses
Share of loss of entities accounted for using equity—
0
method
379
381
Other
1,171
1,175
Total non-operating expenses
2,414(2,114)
Ordinary profit (loss)
Extraordinary income—
1
Gain on sales of non-current assets—
10Gain on sales of investment securities
1
10
Total extraordinary income
Extraordinary losses
644
464
Loss on disposal of non-current assets
150
77
Business restructuring expenses
795
542
Total extraordinary losses
1,620(2,646)
Profit (loss) before income taxes
245
221
Income taxes – current
310
243
Income taxes – deferred
555
464
Total income taxes
1,064(3,111)
Profit (loss)
(37)
(251)
Profit (loss) attributable to non-controlling interests
1,101(2,859)Profit (loss) attributable to owners of parent-6-Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2024

(Quarterly consolidated statements of comprehensive income)(Nine-month period ended December 31, 2023)
Nine-month period ended
December 31, 2022
(April 1, 2022 to
December 31, 2022)
Profit (loss)
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 to)Comprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests-7-(Unit: Millions of yen)
Nine-month period ended
December 31, 2023
(April 1, 2023 to
December 31, 2023)

1,064(3,111)

(42)
(17)
2,708

297
(8)
978

185

89

2,833

1,356

3,898

(1,754)

3,598(1,667)300(87)

Unitika Ltd. (3103)

Financial Results for 3rd Quarter of Fiscal Year Ending March 31, 2024

(3) Notes on quarterly consolidated financial statements(Notes on assumption of going concern)
Not applicable(Notes on significant changes in shareholders’ equity)
Not applicable(Segment information, etc.)[Segment Information]
I. Nine-month period ended December 31, 2022 (April 1, 2022 to December 31, 2022)
1. Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment
Other(Note 1)

Total

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

Performance
Materials

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

37,614
4,580

26,210
1,402

24,292
125

88,1186,108

55—

88,1736,108—(6,108)88,173—

Total

42,19527,613

24,41894,22755

94,282(6,108)88,173

Total

Segment income (loss)
3,224(51) (1,343)
1,829
(41)
1,787
(18)
1,769
(Notes) 1. The Other segment includes business segments that are not included in reportable segments.
2. Adjustment of Segment income (loss) is attributable to the elimination of inter-segment transactions and the adjustment
of inventories.
3. Segment income (loss) is adjusted with operating profit in quarterly consolidated statements of income.

II. Nine-month period ended December 31, 2023 (April 1, 2023 to December 31, 2023)
1. Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment
Other(Note 1)

Total

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

Performance
Materials

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

38,527
3,859

25,003
1,366

22,93982

86,4705,308

35—

86,5055,308—(5,308)86,505—

Total

42,38726,36923,022

91,77835

91,814(5,308)86,505

Total

Segment income (loss)
183(2,047)(703)(2,567)(68) (2,635)
16(2,618)(Notes) 1. The Other segment includes business segments that are not included in reportable segments.
2. Adjustment of Segment income (loss) is attributable to the elimination of inter-segment transactions and the adjustment
of inventories.
3. Segment income (loss) is adjusted with operating profit in consolidated statements of income.

2. Items concerning a change in reportable segments, etc.
As the Unitika Group reviewed the classification of businesses in the first quarter of the current
consolidated fiscal year, it changed the reporting segment of some consolidated subsidiaries from
“Polymers” to “Fibers & Textiles.”Accordingly, the Group reported segment information for the third quarter of the previous consolidated
fiscal year after being retrospectively restated based on the segment classification after the change.

-8-