Member of Financial Accounting Standards Foundation

Financial Results for the 3rd Quarter of the Fiscal Year Ending March 31, 2019
February 7, 2019
Listed stock exchanges: Tokyo Stock Exchange
Company name: Unitika Ltd.
Code number: 3103
URL: https://www.unitika.co.jp/e/home.htm
Representative: Hiroyuki Shime, President and Chief Executive Officer
Contact: Masanori Onishi, General Manager of Accounting Department
TEL: +81-6-6281-5721
Expected submission of quarterly report: February 13, 2019
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, 2019 (April 1, 2018 to December 31, 2018)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales

Operating profit
%
0.5
3.3

Millions of yen

Q3 of FY ending March 31, 2019
Q3 of FY ended March 31, 2018

(Note) Comprehensive income

95,694
95,234

Ordinary profit%(27.4)(4.5)

Millions of yen

6,393
8,803

%
(31.7)(3.9)

Millions of yen

5,507
8,057

Quarterly profit attributableto owners of parent
Millions of yen

4,574
6,960

%
(34.3)
10.7

Q3 of FY ending March 31, 2019: 3,973 million yen [(42.9%)]
Q3 of FY ended March 31, 2018: 6,964 million yen [33.4%]
Quarterly net income per share

Diluted quarterly net income per share

Yen
Yen
74.14
Q3 of FY ending March 31, 201946.12
115.5076.12
Q3 of FY ended March 31, 2018
(Note) The Company implemented a 1-for-10 share consolidation effective as of October 1, 2017 by consolidating 10 common shares of the Company
into one common share. Quarterly net income per share and Diluted quarterly net income per share were calculated on the assumption that therelevant share consolidation had been implemented at the beginning of the previous consolidated fiscal year.

(2) Consolidated financial situation

Q3 of FY ending March 31, 2019
FY ended March 31, 2018

(Reference) Shareholders’ equity

Total assets

Net assets

Millions of yen
203,064
201,447

Millions of yen
44,29340,729

Capital adequacy ratio
%
20.1
18.4

3rd quarter of fiscal year ending March 31, 2019: 40,782 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 Q2Yen

FY ended March 31, 2018
FY ending March 31, 2019End of Q3
Yen
0.00



0.00



Year end
Yen

FY ending March 31, 2019 (forecast)

Total
Yen
0.00

Yen
0.00

0.00

0.00

(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: None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):3rd 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
3rd quarter of the fiscal year ending March 31, 2019: 93,370 sharesFiscal year ended March 31, 2018: 91,653 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
3rd quarter of the fiscal year ending March 31, 2019: 57,659,543 shares
3rd quarter of the fiscal year ended March 31, 2018: 57,669,782 shares(Note) The Company implemented a 1-for-10 share consolidation effective as of October 1, 2017 by consolidating 10 common shares of theCompany into one common share. The Average number of shares outstanding during the term was calculated on the assumption thatthe 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

End of Q3
Yen——

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

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, 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 andconsolidated quarterly statements of comprehensive income ..............................................................6
Consolidated quarterly statements of income
Nine-month period ended December 31, 2018 ................................................................................. 6
Consolidated quarterly statements of comprehensive income
Nine-month period ended December 31, 2018 ................................................................................. 7(3) Notes on quarterly consolidated financial statements ..........................................................................8(Notes on going concern assumption) ..................................................................................................8(Notes on significant changes in shareholders’ equity) ........................................................................8(Additional information).......................................................................................................................8(Segment information) ..........................................................................................................................9(Significant subsequent events) ..........................................................................................................10-1-

Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2019

1. Qualitative Information on Quarterly Results(1) Explanation of operational results
During the nine-month period of the consolidated accounting year under review, the Japanese economy
continued to grow steadily against the backdrop of strong corporate earnings and an improvement in theemployment environment. Looking overseas, the global economy as a whole remained solid, supported by
the strong U.S. economy. However, the outlook for the global economy continued to be unclear, as concernsrose that economic activity in China and Europe would slow down, affecting the Japanese economy, while
intensifying trade friction between the U.S. and China, growing geopolitical risks, and fluctuating natural
resource prices led to a more unstable global situation.
Under these circumstances, the Unitika Group endeavored to realize the three Gs (Growth, Global, andGovernance) promoted under the “G” round 20—to The Next Stage, its medium-term management plan.
Consequently, the Group reported net sales of 95,694 million yen (up 0.5% year on year), operating profit of
6,393 million yen (down 27.4% year on year), ordinary profit of 5,507 million yen (down 31.7% year onyear), and profit attributable to owners of parent of 4,574 million yen (down 34.3% year on year) in thenine-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 packaging sector continued to grow steadily, supported by an increase indemand, mainly for winter goods, owing to the robust domestic economy. Sales of high value-added
products, such as EMBLEM HG, a barrier nylon film, also grew vigorously. Overseas, P.T.EMBLEM ASIA,
a subsidiary, saw sales in Indonesia and exports grow strongly. In the industrial sector, demand was steady inthe area of electric and electronics applications. Furthermore, sales of high value-added products such as
Uni-peel, a silicon-free mold release PET film, were also robust.
In the Plastics business, demand for elitel, a thermoplastic saturated copolymeric polyester resin, and
ARROWBASE, a range of environmentally friendly water-based polyolefin cationic emulsions, decreased forsolar cell applications. The sales volume of U-Polymer, the Company’s original polyarylate resin, declined
for information terminal applications due to the impact of inventory adjustment. Meanwhile, sales of nylon
resins were steady for automobile applications.
In the Non-woven Fabrics business, demand for polyester spunbond fabrics, in general, continued to growsteadily in each application, including building materials, agriculture, and exports. THAI UNITIKASPUNBOND CO., LTD. (TUSCO), a subsidiary in Thailand, saw sales of products manufactured by its
existing machinery increase solidly, while it had consistently encouraged customers to adopt products
manufactured by its new machinery at the stage of design. Sales of cotton spunlace grew strongly, supported
by steady demand for skin care goods.
Accordingly, earnings in the Polymers business, as a whole, decreased mainly due to the unfavorable impactof rising costs, including soaring raw material and fuel prices.
Consequently, the Polymers business posted operating profit of 5,897 million yen (down 18.8% year onyear) on net sales of 47,153 million yen (up 8.0% 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 and civil engineering applications
were sluggish. In the electronic materials sector, sales of general-use IC cloth were weak since the slowing
down of information terminal production became apparent, but high value-added products, such as super thinproducts, increased robustly.
In the Glass Beads business, sales for road marking applications were robust compared to an average year
and sales for special applications among industrial applications grew steadily. Meanwhile, we had a toughsales environment for reflective material applications.
In the Activated Carbon Fibers business, sales for our mainstay water purifier applications and VOC removal
applications continued to grow steadily, although sales for industrial filter applications remained sluggish.
Consequently, the Advanced Materials business posted operating profit of 891 million yen (down 4.7% year
on year) on net sales of 9,526 million yen (up 1.7% year on year).
[Fibers and Textiles]
In the Industrial Materials business, sales of staple fibers were sluggish for daily product applications andexports, but sales of high value-added products, such as composite fibers, remained robust. Furthermore,sales of ultra-high-strength polyester filament yarns continued growing steadily, supported by strong demandfor civil engineering and building applications. Meanwhile, soaring raw material and fuel prices 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, a mainstay of this business, remained steady and sales of raw fibers for high-functional materials-2-Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2019

also grew strongly. However, sales continued to be sluggish in the sports clothing sector. Furthermore, in theOverseas business, sales of denim remained weak.
Consequently, the Fibers and Textiles business posted an operating loss of 121 million yen ( operating profitof 836 million yen in the previous year) on net sales of 37,841 million yen (down 3.6% year on year).
[Others]
The Others category posted an operating loss of 237 million yen (operating loss of 244 million yen in thesame period of the previous consolidated fiscal year) on net sales of 1,173 million yen (down 59.9% year onyear).
(2) Explanation of financial situation
Total assets increased by 1,617 million yen from the end of the previous consolidated year to 203,064
million yen, mainly due to an increase in property, plant and equipment. Liabilities fell by 1,946 million yen
from the end of the previous consolidated year to 158,770 million yen, mainly due to a decrease in long-termloans payable. Net assets grew by 3,563 million yen from the end of the previous consolidated year to 44,293
million yen. This was mainly due to a rise in retained earnings caused by the posting of profit attributable toowners of parent.
(3) Explanation of future forecast information including forecast of consolidated performance
The Unitika Group did not revise its full-year forecast of consolidated performance for the fiscal year ending
March 31, 2019 announced on November 8, 2018.

-3-

Unitika Ltd. (3103)

Financial results for 3rd 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
fiscal year
(March 31, 2018)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
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-Q3 of FY ending March 2019
(December 31, 2018)

26,39536,552
27,202
2,899(84)
92,96525,15635,52330,7262,567(63)
93,91023,08165,071
13,502
101,654

22,81065,64814,483102,942

2,139
2,139

1,967
1,967

4,707
(20)
4,686
108,481
201,447

4,282
(38)
4,244
109,154
203,064

Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2019

(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2018)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
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-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-

Q3 of FY ending March 2019
(December 31, 2018)

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

19,116
2,440
2,703
176
895
265
—
9,561
35,158100,081
4
12,21812,727125,031
160,717

98,106
4
12,804
12,696123,611
158,770

100
16,451
19,201(55)
35,698100
16,487
23,378(56)
39,910

491

310

(2)
6,415
(2,793)(2,644)
1,467
3,564
40,729201,447(29)
6,415(3,449)(2,376)871
3,511
44,293203,064

Unitika Ltd. (3103)

Financial results for 3rd 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)(Nine-month period ended December 31, 2018)(Unit: Millions of yen)

Nine-month period
ended December 31, 2017
(April 1, 2017 to
December 31, 2017)

Nine-month period
ended December 31, 2018
(April 1, 2018 to
December 31, 2018)

95,23471,31823,91615,112
8,803

95,69473,38722,307
15,913
6,393

47
72
249

31
70
55

—

27

109
360
838

97
191
474

1,021

920

31

—

530
1,584
8,057

440
1,361
5,507

759
—
759

19
398
418

265
73
1
340
8,476
755
715
1,470
7,005

460
—
—
460
5,465
601
281
883
4,582

45
6,960

7
4,574

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity
methodRent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on liquidation of subsidiaries and associates
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Business structure improvement expenses
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-6-Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2019

(Consolidated quarterly statements of comprehensive income)(Nine-month period ended December 31, 2018)(Unit: Millions of yen)

Nine-month period ended
December 31, 2017
(April 1, 2017 to
December 31, 2017)
ProfitOther 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 tonon-controlling interests-7-

Nine-month period ended
December 31, 2018
(April 1, 2018 to
December 31, 2018)

7,005

4,582

70
(5)
(363)

(180)
(32)
(663)

256

267

(41)

(608)

6,964

3,973

6,981

3,978

(17)

(4)

Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2019(3) 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 Boardof Japan (ASBJ) Statement No. 28, February 16, 2018) has been applied from the beginning of the firstquarter of the current fiscal year. Accordingly, deferred tax assets have been classified as investments
and other assets, and deferred tax liabilities have been classified as non-current liabilities.
(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 acquirepart of the Class B shares issued by the Company (worth 3,200 million yen) in exchange for cash
payment in accordance with the provision of Article 13-3, Item 6 of the Company’s Articles ofIncorporation (Call Options, the Consideration for Which Is Money) and to retire the same in accordancewith the provision of Article 178 of the Companies 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 progressof 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 and deposits as soon as possible. Therefore, the Company has decided to acquire and retirepart 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 commonshares, 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) Counterparties in the acquisition (shareholders): Mizuho Bank, Ltd., Mitsubishi UFJ Trust andBanking 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 eachshareholder 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 shares from 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 per diem basis (21,723.7 yen) to the amount to be paid per Class B share (1,000,000yen).
(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 asmentioned in (2) above.

-8-

Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2019

(Segment information)[Segment Information]
I. Nine-month period ended December 31, 2017 (April 1, 2017 to December 31, 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
Inter-segment sales or transfers

43,672
7,096

9,367
691

39,270605

92,310
8,393

2,924
883

95,2349,276—(9,276)

95,234—

Total

50,76910,05839,875

100,7033,807 104,511(9,276)

95,234

Segment income (loss)
7,262
935
836
9,033
(244)
8,789
13
8,803
(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 quarterly consolidated statements of income.

II. Nine-month period ended December 31, 2018 (April 1, 2018 to December 31, 2018)
1. Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment
Other(Note 1)

Total

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

Advanced
Materials

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

47,153
7,000

9,526
643

37,841
387

94,521
8,031

1,173
914

95,694
8,946—(8,946)

95,694—

Total

54,154

10,17038,228102,553

2,087 104,641(8,946)

95,694

Total

Segment income (loss)
5,897
891
(121)
6,666
(237)
6,429
(35)
6,393
(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 3rd quarter of fiscal year ending March 31, 2019

(Significant subsequent events)(Occurrence of fire at the Uji Plant)
On January 8, 2019, a fire broke out at the Uji Plant, burning 450 square meters, part of thepolymerization facilities. As a result, the operation of the nylon polymerization facilities has beensuspended. The Company has been investigating to discover the cause of the fire and has been repairing
the facilities to resume production at an early stage.
Although inventory and noncurrent assets of the Uji Plant are covered by fire insurance policies, theCompany has difficulty in reasonably estimating the impact on its consolidated earnings for the fiscal
year ending March 31, 2019, since it will take a considerable time for the Company to determine theamount of loss and the insurance money to be received.
(Production shutdown at a consolidated overseas subsidiary)
In accordance with a resolution made at a meeting of the Board of Directors of the Company held on
November 26, 2018, UNITIKA DO BRASIL INDUSTRIA TEXTIL LIMITADA (“Unitika Brazil”), a
consolidated overseas subsidiary of the Company, shut down the production of cotton and synthetic fiber
spun yarns on December 29, 2018. The Company estimates that the cost for the production shut down
will be around 300 million yen.
Furthermore, the book closing date of Unitika Brazil is different from the consolidated book closing dateof the Company. For the nine-month period of the consolidated accounting year under review, thefinancial statements of Unitika Brazil for the period ended on September 30, 2018 have been
consolidated. Therefore, such matter is noted as a significant subsequent event.

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