Member of Financial Accounting Standards Foundation

Financial Report for Fiscal Year ended March 31, 2020 [Japanese GAAP] (Consolidated)
May 14, 2020
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: Masanori Onishi, General Manager of Accounting Department
TEL: +81-6-6281-5721
Expected date for holding a regular shareholders meeting: June 26, 2020
Expected date for submitting securities report: June 26, 2020
Expected commencement date for paying dividend: –Preparation of the attachment of Financial Report: Yes
Holding of a results presentation: Yes (From the viewpoint of preventing the spread of COVID-19, the Company plans to uploada streaming video of the presentation of its financial results on its website.)(Figures rounded down to nearest million yen.)

1. Consolidated performance for fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(1) Consolidated business results(Percentages represent changes from same period in previous year.)Net sales

Operating profit

Millions of yen

FY ended March 31, 2020
FY ended March 31, 2019
(Note) Comprehensive income% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen

119,537
5,467
3,153
(7.4)
(32.9)(55.5)
129,0980.6
8,144(30.1)
7,093(28.9)FY ended March 31, 2020: (2,097) million yen [ –% ]FY ended March 31, 2019: 4,302 million yen [(48.0%)]
Diluted profit per
Profit per share
Return on equity
Return on asset
share
Yen

(43.01)
FY ended March 31, 2020
FY ended March 31, 2019
85.17
(Reference) Equity in earnings/losses of affiliates

Yen

%

⎯

(5.9)
52.81
13.9
FY ended March 31, 2020: 13 million yen
FY ended March 31, 2019: 29 million yen(2,158)5,232%⎯(35.3)

Ratio of operating
profit to sales
%

%

1.6
3.5

4.6
6.3

(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, 2020
193,726
38,933
FY ended March 31, 2019
199,093
41,352(Reference) Shareholders’ equity: FY ended March 31, 2020: 35,481 million yen
FY ended March 31, 2019: 37,873 million yen

18.3
19.0

188.37229.85(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

9,797
8,985

(10,192)(6,440)(3,482)(6,519)18,194
22,122

FY ended March 31, 2020
FY ended March 31, 2019

2. Dividend payment
Annual dividend per share
End of Q1

End of Q2Yen

FY ended March 31, 2019
FY ended March 31, 2020
FY ending March 31, 2021
(forecast)⎯⎯⎯End of Q3

Yen

0.00
0.00
⎯

Year end

Yen

⎯
⎯
⎯

Total

Annualdividends paid
(Total)Yen

YenMillions of yen

0.00
0.00

0.00
0.00

⎯
⎯

⎯

⎯

Dividend
payout ratio(consolidated)

Dividend ratioof net assets(consolidated)

%

⎯
⎯

%

⎯
⎯

⎯

(Note) The above Dividend payment refers to dividends paid to the holders of common stock. The Company will announce its dividend forecast for
the fiscal year ending March 31, 2021 immediately after the calculation of the forecast of operational results becomes possible. For details ofdividend payment to the holders of class shares (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, 2021 (April 1, 2020 to March
31, 2021)
The Company has left the forecast of consolidated performance for the fiscal year ending March 31, 2021
as undetermined, since it is difficult for its management team to reasonably estimate the impact of the
spread of COVID-19 on the Company’s business activities and operational results at the present moment.
The Company will announce the forecast immediately after the calculation of the forecast of operational
results becomes possible.
* 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) Changes in accounting policies, changes in accounting estimates and retrospective restatement(i) Changes in accounting policies due to revisions of accounting standards: No(ii) Changes of accounting policies other than the above: No(iii) Changes in accounting estimates: No(iv) Retrospective restatement: No(3) Number of shares outstanding (Common stock)(i) Number of shares outstanding at end of term (including treasury share):Fiscal year ended March 31, 2020: 57,752,343 sharesFiscal year ended March 31, 2019: 57,752,343 shares(ii) Number of treasury shares at end of term
Fiscal year ended March 31, 2020: 94,343 sharesFiscal year ended March 31, 2019: 93,637 shares(iii) Average number of shares outstanding during the term
Fiscal year ended March 31, 2020: 57,658,293 sharesFiscal year ended March 31, 2019: 57,659,366 shares(Reference) Summary of non-consolidated performanceNon-consolidated performance for fiscal year ended March 31, 2020 (April 1, 2019 to March 31, 2020)(1) Non-consolidated business results(Percentages represent changes from same period in previous year.)Net sales
FY ended March 31, 2020
FY ended March 31, 2019

Operating profit

Millions of yen%

76,15080,322

(5.2)
(1.0)

Millions of yen

Ordinary profit
Millions of yen%

Millions of yen%

5,136 (25.7)
6,915 (27.5)

3,224
6,350

(49.2)(24.1)(2,075)4,196⎯(26.6)

Profit per share

Diluted profit per share
Yen

Yen

⎯

(41.58)67.20

FY ended March 31, 2020
FY ended March 31, 2019

Profit%42.35(2) Non-consolidated financial situation
Total assets
Millions of yen

Net assets

Capital adequacy ratio

Net assets per share

Millions of yen%

Yen

FY ended March 31, 2020
172,848
37,008FY ended March 31, 2019
177,231
39,406(Reference) Shareholders’ equity: FY ended March 31, 2020: 37,008 million yen
FY ended March 31, 2019: 39,406 million yen

21.4
22.2

214.85256.44* The financial report is not subject to an audit by a certified public accountant or an accounting firm.
* 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 4 of the attachment.
(Method to obtain information on the presentation of financial results)
The Company plans to upload a video streaming of the presentation of its financial results on its website (scheduled to be posted on May 25, 2020).

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 as follows:
Annual dividends
End of Q1
Yen

Class A share
FY ended March 31, 2019
FY ended March 31, 2020——

FY ending March 31, 2021 (forecast)—Yen

End of Q2

End of Q3

Yen

Yen

0.00
0.00

—
—

0.00

—

Yen

Class B share
FY ended March 31, 2019
FY ended March 31, 2020

—
—

0.00
0.00

FY ending March 31, 2021 (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, 2020

 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 ................................................................................................................................................... 4(5) Basic policy for profit distribution and dividends for the fiscal year ended March 31, 2020 and the fiscal year
ending March 31, 2021 ...................................................................................................................................... 4
2. Basic Approach to the Selection of Accounting Standards ...................................................................................... 4
3. Consolidated Financial Statements and Major Notes to Consolidated Financial Statements................................... 5(1) Consolidated balance sheets .............................................................................................................................. 5(2) Consolidated income statement and consolidated comprehensive income statement ....................................... 7(Consolidated income statement) ........................................................................................................................ 7(Consolidated comprehensive income statement) ............................................................................................... 8(3) Consolidated statements of changes in net assets .............................................................................................. 9(4) Consolidated statements of cash flow .............................................................................................................. 11(5) Notes on consolidated financial statements ..................................................................................................... 12(Notes on going concern assumption) ............................................................................................................... 12(Significant items that are the basis for preparation of consolidated financial statements) .............................. 12(Additional information) ................................................................................................................................... 12(Segment information) ...................................................................................................................................... 13(Per share information) ..................................................................................................................................... 15(Material subsequent events)............................................................................................................................. 15
4. Supplementary materials ........................................................................................................................................ 16- 1 -Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2020

1. Overview of Business Performance(1) Overview of business performance of the year
During the consolidated fiscal year under review, in the first half, the Japanese economy continued to grow moderately,supported by solid capital investment and consumer spending in Japan as well as good employment and income
environment. However, in the second half, the economy entered into a recession because of a decline in domestic
demand following the consumption tax rate increase and a sharp decrease in demand of foreign visitors to Japan due
to the spread of COVID-19. Meanwhile, looking at the global economy, the U.S. economy continued to grow steadily,
while economic stagnation became apparent in China. Furthermore, the outlook for the global economy remained
unclear since concerns grew over the outbreak of COVID-19 around the world and its possible prolonged negative
impact.
Under these circumstances, the Unitika Group endeavored to realize the three Gs (Growth, Global, and Governance)
promoted under the “G” round 20—to The Next Stage, its medium-term management plan.
Consequently, the Group reported net sales of 119,537 million yen (down 7.4% year on year), operating profit of
5,467 million yen (down 32.9% year on year), and ordinary profit of 3,153 million yen (down 55.5% year on year) in
the consolidated fiscal year under review. Meanwhile, the Group posted 2,566 million yen of provision for loss on
litigation and 1,043 million yen of impairment loss associated with earnings deterioration in THAI UNITIKASPUNBOND CO., LTD., a subsidiary in Thailand, as an extraordinary loss, resulting in loss attributable to owners ofparent of 2,158 million yen in the consolidated fiscal year under review (vs. profit attributable to owners of parent of
5,232 million yen in the previous year).
Furthermore, as the Group announced on August 28, 2019 and November 1, 2019, incidents of inappropriate quality
control were found with some products that were manufactured and marketed by the Company and its subsidiaries.
The Unitika Group deeply regrets that the occurrence of such incidents caused significant inconvenience and worry
to its customers, relevant ministries and agencies, and other concerned parties.
Here is an overview of the business results by segment.

[Polymers]
The Polymers business saw the occurrence of a fire at the Uji Plant in January 2019 affect production and sales of theFilms business and nylon products in the Plastics businesses.
In the Films business, the packaging sector saw sales decrease due to the impact of the fire at the Uji Plant and theslowdown in demand for some seasonal products because of unseasonable weather, including a mild winter. However,sales of EMBLEM HG, a barrier nylon film, continued to grow steadily and other high-value-added products soldrobustly in Japan and overseas. In the industrial sector, demand plunged due to the semiconductor market doldrums.
Meanwhile, sales of high-value-added products, such as Uni-amide, a heat-resistant thermoplastic polyamide film,and Uni-peel, a silicon-free mold release PET film, increased steadily. Consequently, the Film business recorded afall in sales and a rise in profit.
In the Plastics business, profitability of nylon resins deteriorated since sales decreased significantly due to thefollowing reasons: the impact of the fire at the Uji Plant, a slowdown of the automobile industry, and a decline incapital expenditures in the semiconductor industry. Furthermore, sales of U-Polymer, a polyarylate resin, faced an
uphill battle due to a fall in demand for automobile applications overseas and for information terminal equipment
applications in the second half, despite solid growth in the first half. Sales of raw materials for other functional resins
were also sluggish. As a result, the Plastics business saw sales and profit decrease.
In the Non-woven Fabrics business, sales of spunbond non-woven fabrics grew steadily for daily product applications,but were sluggish for building material applications and overseas. THAI UNITIKA SPUNBOND CO., LTD.
(TUSCO), a subsidiary in Thailand, saw its earnings deteriorate due to a fall in demand for interior applications andautomobile-related applications. Meanwhile, sales of spunlace non-woven fabrics grew strongly overseas but
decreased in Japan due to the impact of cooler summer weather and a decline in demand of foreign visitors to Japan.
Consequently, the Non-woven Fabrics business reported a fall in sales and profit.
Consequently, the Polymers business posted operating profit of 5,288 million yen (down 25.0% year on year) on net
sales of 56,411 million yen (down 9.0% year on year).

- 2 -Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2020

[Advanced Materials]
In the Glass Fibers business, the industrial materials sector saw sales of products for building applications, such astransparent incombustible sheets, and products for electric and electronic applications grow steadily and sales forenvironment-related applications recover. In the electronic materials sector, sales of IC cloth were weak due to a delayin the recovery of the semiconductor market, but sales of high-value-added products, such as super-thin products andmaterials with low thermal expansion, expanded steadily.
In the Glass Beads business, sales of products for road applications grew robustly, but sales of products for industrial
applications were sluggish due to a fall in demand in the field of automotive and electronic components. Furthermore,demand for products for reflective material applications also remained weak.
In the Activated Carbon Fibers business, sales of our mainstay water purifier applications, especially faucet built-in
water purifiers, continued to be strong across-the-board and sales for VOC removal applications also grew steadily.
However, demand for industrial applications continued to decline.
Consequently, the Advanced Materials business posted operating profit of 1,066 million yen (down 12.5% year onyear) on net sales of 13,093 million yen (up 2.8% year on year).

[Fibers and Textiles]
In the Industrial Materials business, sales of ultra-high-strength polyester filament yarns grew steadily for some fields,such as civil engineering and building applications, but sales of polyester staple fibers and composite fibers in general
were sluggish. Furthermore, profitability deteriorated due to rising costs.
In the Garments, Lifestyle Materials and Bedding business, sales continued to be sluggish in the sports clothing,
women’s clothing, and bedding sectors despite a rise in sales of Terramac, biomass plastic. Sales in the uniform sector,a mainstay of this business, stagnated due to inventory adjustment, chiefly for corporate customers, and decreased.
Furthermore, in the Overseas business, sales of denim remained decreased from the previous year.
Consequently, the Fibers and Textiles business posted an operating loss of 589 million yen (vs. operating profit of
159 million yen in the previous year) on net sales of 49,894 million yen (down 5.6% year on year).

[Others]
The Others category posted an operating loss of 289 million yen (compared to an operating loss of 275 million
yen in the previous year) on net sales of 137 million yen (down 91.0% year on year).
(2) Overview of financial position
Total assets decreased by 5,367 million yen from the end of the previous consolidated year to 193,726 million yen,mainly due to a decrease in notes and accounts receivable-trade. Liabilities fell by 2,948 million yen from the end of
the previous consolidated year to 154,792 million yen. This was primarily due to a decline in notes and accounts
payable-trade despite the posting of provision for loss on litigation. Net assets fell by 2,419 million yen from the endof the previous consolidated year to 38,933 million yen. This was mainly due to a decrease in retained earnings causedby the posting of loss attributable to owners of parent.
(3) Overview of cash-flow
Cash and cash equivalents (hereinafter referred to as “net cash”) as of March 31, 2020 decreased by 3,927 million
yen to 18,194 million yen.
(Net cash provided by [used in] operating activities)
Cash flows from operating activities increased by 9,797 million yen during the current consolidated fiscal year (up9.0% year-on-year) mainly due to a decrease in trade receivables and the posting of depreciation and provision forloss on litigation, despite a decline in trade payables.
(Net cash provided by [used in] investing activities)
Cash flows from investing activities decreased by 10,192 million yen during the current consolidated fiscal
year (decreased by 6,440 million yen in the previous consolidated fiscal year) due to the posting of expenses
related to capital expenditures.
(Net cash provided by [used in] financing activities)
Cash flows from financing activities decreased by 3,482 million yen during the current consolidated fiscal year
(decreased by 6,519 million yen in the previous consolidated fiscal year), due to the repayments of borrowings.
- 3 -Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2020

(Reference) Changes in cash flow-related indicators(i)

Shareholders’ equity ratio (%)(ii) Shareholders’ equity ratio on
market value basis (%)(iii) Ratio of interest-bearing debt tocash flow(iv) Interest coverage ratio

Year ended
March 31, 2020

Year ended
March 31, 2019Year ended
March 31, 2018

18.3

19.0

18.4

8.0

12.3

19.1

10.5

11.8

11.1

8.3

7.4

7.3

(Notes) Shareholders’ equity ratio: Shareholders’ equity/Total assets
Shareholders’ equity ratio on market value basis: Market capitalization/Total assets
Ratio of interest-bearing debt to cash flow: Interest-bearing debt/Cash flow
Interest coverage ratio: Cash flow/Interest expense*1. Each indicator is calculated based on consolidated financial results.
*2. Cash flow is net cash provided by operating activities.
*3. Interest-bearing debt includes all liabilities, reported on the consolidated balance sheet, on which interest is
paid.

(4) Future forecast
The Unitika Group has formulated G-STEP30, a long-term vision for the Group that lays out the desired image of theGroup around 2030, and G-STEP30, the 1st, a new three-year medium-term management plan. Under the mediumterm management plan that starts from fiscal year 2020, the Group is determined to realize the building of strong
business portfolios, promotion of global business development, and change of business culture and mind-set. The
Unitika Group will aim to achieve net sales of 147,000 million yen and operating profit of 11,000 million yen at the
final year of the new medium-term management plan by steadily implementing each measure and establishing a
corporate management foundation toward sustainable growth.
Regarding the future forecast, the economy has greatly slackened due to serious impact of countermeasures against
COVID-19 on economic activities. While it is currently difficult to predict the future development of COVID-19, there
may be a serious impact on the Company’s financial situation and operational results for the fiscal year ending March
31, 2021, depending on the timing of successful COVID-19 containment. The Company has left the forecast of
consolidated performance for the fiscal year ending March 31, 2021 as undetermined, since it is difficult for its
management team to reasonably estimate the impact of the spread of COVID-19 on the Company’s performance at thepresent moment. The Company will announce the forecast immediately after calculation of the forecast of operational
results becomes possible.

(5) Basic policy for profit distribution and dividends for the fiscal year ended March 31, 2020 and the fiscal year
ending March 31, 2021
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, 2020, giving due
consideration to the business results 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
the Company’s financial results. At the same time, the Company intends to decide dividend payment after
considering the improvement of financial position and enhancing of internal reserve for securing profit forshareholders from a long-term perspective. The Company will announce its dividend forecast for the fiscal year
ending March 31, 2021 immediately after the calculation of the forecast of operational results becomes possible.
Regarding dividends for the classified stock issued through third party allocations in July 2014, the Company
plans to provide the following dividends based on the classified stock issuance guidelines determined at the timeof 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
the comparability of performance with competitors in Japan.
- 4 -Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2020

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, 2019)
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
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- 5 -Current consolidated
fiscal year
(March 31, 2020)

22,58035,316
29,6392,416(61)
89,891

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

10,67523,002
1,159
65,629293
2,107
102,868

10,85821,543
1,127
65,191
233
6,492
105,447

1,927
1,927

1,756
1,756

2,694
8
423
29
245
1,042
(37)
4,406
109,202
199,093

2,645
8
405
29
223
1,067
(84)
4,296
111,500
193,726

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2020

(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2019)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of long-term borrowings
Lease obligations
Income taxes payable
Provision for bonuses
A product repair reserve fund
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for retirement benefits for directors (and otherofficers)
Provision for loss on litigation
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-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- 6 -Current consolidated
fiscal year
(March 31, 2020)

18,0562,430
99,993
34
589
1,648
72
8,709
131,534

14,922
2,288
2,675
363
284
1,710
42
8,949
31,237

180
588
7,953
3,579

94,631
162
7,824
3,579

4

—

—
13,184715
26,206
157,740

2,566
14,333
458
123,554
154,792

100
13,21824,040(56)
37,302

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

363
(69)
6,412
(3,589)(2,545)
571

361
(11)
6,412
(3,521)(2,581)660

3,479
41,352
199,093

3,451
38,933
193,726

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2020

(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
Rental income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Syndicated loan origination fee
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on liquidation of subsidiaries and associates
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on disposal of non-current assets
Loss on valuation of investment securities
Loss due to fireBusiness restructuring expenses
Provision for loss on litigation
Total extraordinary losses
Profit (loss) before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit (loss)(Loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent- 7 -Previous consolidated
fiscal year
(April 1, 2018 toMarch 31, 2019)
129,098
99,77929,31921,175
8,144

Current consolidated
fiscal year
(April 1, 2019 toMarch 31, 2020)
119,537
92,15627,38021,913
5,467

78
72
29
159
127
236
704

76
83
13
—
121
230
525

1,217
—
—
537
1,754
7,093

1,174
308
869
486
2,839
3,153

35
—
398
434

83
0
—
84

—
599
—
87
157
—
844
6,684
1,004
447
1,452
5,231
(0)
5,232

1,043
1,278
48
—
30
2,566
4,967
(1,728)
600
(129)
471
(2,200)(41)(2,158)

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2020

(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
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

Previous consolidated
fiscal year
(April 1, 2018 toMarch 31, 2019)
5,231

Current consolidated
fiscal year
(April 1, 2019 toMarch 31, 2020)(2,200)

(128)

(1)

(78)
(820)

66
74

99

(36)

(929)
4,302

102
(2,097)

4,339(2,069)

(36)

(27)

- 8 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2020

(3) Consolidated statements of changes in net assets
Previous consolidated fiscal year (April 1, 2018 to March 31, 2019)(Unit: Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus
100

Retained earnings

16,451

Total shareholders’equityTreasury shares

19,201(55)

35,698Changes in items during period
Dividends of surplus

(397)

(397)

Profit attributable to owners of parent

5,232

5,232

Purchase of treasury shares(3,270)(3,270)000(3,269)3,269—

Disposal of treasury shares
Cancellation of treasury shares
Capital increase of consolidated
subsidiaries
Change in scope of consolidation - foreign
currency translation adjustment

36

36

Reversal of revaluation reserve for land33

Net changes in items other thanshareholders’ equity
Total changes in items during period—(3,232)

4,838

(1)

1,603

Balance at end of period

100

13,21824,040(56)

37,302

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Deferred
gains orlosses onhedges

Revaluation
reserve for
land

491

(2)

6,415

Total
NonForeign
Reaccumulated
controllingcurrency measurements
otherof definedinterests
translation
comprehenadjustment benefit plans
sive income(2,793)(2,644)

1,467

3,564

Total net
assets40,729Changes in items during period
Dividends of surplus(397)

Profit attributable to owners of parent

5,232

Purchase of treasury shares(3,270)

Disposal of treasury shares

0Cancellation of treasury shares—

Capital increase of consolidated
subsidiaries
Change in scope of consolidation - foreign
currency translation adjustment

(36)
(439)

Reversal of revaluation reserve for land(3)

Net changes in items other thanshareholders’ equity

(128)

(67)

Total changes in items during period

(128)

(67)

Balance at end of period

363

(69)

—

(439)

(439)

(3)

—

(356)

99

(453)

(48)

(501)

(3)

(795)

99

(895)

(84)

622

6,412

(3,589)(2,545)

571

3,479

41,352- 9 -Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2020

Current consolidated fiscal year (April 1, 2019 to March 31, 2020)(Unit: Millions of yen)
Shareholders’ equity
Share capital
Balance at beginning of period

Capital surplus
100

Retained earnings

13,218

Total shareholders’equityTreasury shares

24,040(56)

37,302

Changes in items during period
Dividends of surplus(Loss) attributable to owners ofparent

(321)

(321)

(2,158)(2,158)Purchase of treasury shares
Disposal of treasury shares

(0)

(0)

0

0

(0)

Cancellation of treasury shares
Capital increase of consolidated
subsidiaries
Change in scope of consolidation foreign currency translation
adjustment
Reversal of revaluation reserve forland
Net changes in items other thanshareholders’ equity
Total changes in items during
Period—(0)(2,480)(0)(2,480)

Balance at end of period

100

13,21821,559(56)

34,821

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

363

(69)

6,412

(3,589)(2,545)

571

3,479

41,352

Changes in items during period
Dividends of surplus(321)(Loss) attributable to owners ofparent(2,158)Purchase of treasury shares(0)

Disposal of treasury shares

0Cancellation of treasury shares
Capital increase of consolidated
subsidiaries
Change in scope of consolidation foreign currency translation
adjustment
Reversal of revaluation reserve forland
Net changes in items other thanshareholders’ equity

(1)

58

Total changes in items during
Period(1)

58

Balance at end of period

361

(11)

68

(36)

88

(27)

61

—

68

(36)

88

(27)

(2,419)6,412(3,521)(2,581)

660

3,451

38,933- 10 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2020

(4) Consolidated statements of cash flow
(Unit: Millions of yen)Previous consolidated
fiscal year
(April 1, 2018 toMarch 31, 2019)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Loss due to fire
Loss (gain) on liquidation of subsidiaries and associates
Business restructuring expenses
Provision for loss on litigation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for business restructuring
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 or class 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- 11 -

Current consolidated
fiscal year
(April 1, 2019 toMarch 31, 2020)

6,684
5,035
—
87
(398)
157
—
(5)
1,072
(20)
(632)
72
1,217
599
(35)
—
1,133
(2,512)(828)(337)
11,287150(1,213)(1,240)—8,985(1,728)
5,333
1,043
—
—
30
2,566
33
1,120
—
(30)
57
1,174
1,278
(83)
(0)
4,314
97
(3,083)(725)
11,398159(1,178)(1,060)
478
9,797

(236)
(10)
0
(5,769)55—(479)(6,440)

(205)
(10)
22
(9,170)
511
(966)
(372)
(10,192)(18)
140(2,765)(397)(3,269)(209)(6,519)(71)(4,047)
26,16922,122(113)
97,126(99,993)
(321)
—
(181)
(3,482)(51)(3,927)
22,122
18,194

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2020

(5) Notes on consolidated financial statements(Notes on going concern assumption)
Not applicable.
(Significant items that are the basis for preparation of consolidated financial statements)
There are no significant changes in our latest securities report, except for Items related to accounting policies statedbelow.
(Items related to accounting policies)
Basis of recording of significant provisions
Provision for bonuses
To provide for the payment of bonuses to employees, provision is recorded at the estimated amounts to be paid(including part of performance-based remuneration to executive officers).
Provision for loss on litigation
To prepare for possible losses from litigation in process, provision is recorded at the estimated amounts that isthought to be required by estimating loss amounts which may be incurred in the future.
(Additional information)
In an appeal hearing filed by citizens of Toyohashi City, Aichi Prefecture (the “City”) who claimed that Unitika’s saleof land for industrial use to a third party was a breach of the land transfer contract—the land was transferred by theCity to the Company in 1951—and requested the mayor of the City to demand damages against the Company (theCompany participated in the appeal hearing as an assisting intervener), the Nagoya High Court ordered the mayor torequest the Company to pay around 2,094 million yen in damages and delinquency charges on July 16, 2019.
Meanwhile, the lawsuit is in progress, since the Company, the mayor, and citizens of Toyohashi City have appealed to
the Supreme Court against the judgment made by the court of second instance and petitioned for acceptance of a final
appeal. However, the Company made reasonable estimates to calculate the amount based on the judgment by the High
Court and recorded 2,566 million yen of provision for loss on litigation.

- 12 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2020

(Segment information)
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 of managerial 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 businessactivities according to the strategies.
Unitika consists of segments by product and service based on divisions. The following three are its
reportable segments: Polymers, Advanced Materials, and Fibers & Textiles.
The Polymers segment manufactures and markets films, resins, and non-woven fabrics. The Advanced
Materials segment makes and sells glass fibers and so on. The Fibers & Textiles segment produces anddistributes various types of fibers (threads, cotton, textiles and 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 almost the same as the descriptions in
Significant items that are the basis 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, 2018 to March 31, 2019)
Reportable segment

Polymers

Advanced
Materials

Fibers &Textiles

Other(Note 1)
Total

Total

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

Net sales
Net sales to outside
61,963
12,73952,862
127,565
1,532
129,098—
129,098
customers
Inter-segment sales or
9,415
829
498
10,743
1,236
11,979(11,979)—
transfer
Total
71,37813,56953,360138,308
2,768
141,077(11,979)
129,098
Segment income (loss)
7,048
1,219
159
8,427
(275)
8,151
(6)
8,144
Segment assets
109,810
17,61547,022
174,448
6,623
181,072
18,020199,093
Other items
Depreciation and
3,523
346
479
4,350
8
4,359
676
5,035
amortization
Increase in property, plantand equipment and
4,593
376
384
5,354
26
5,381
1,035
6,416
intangible assets(Note) 1. The Other segment includes business segments that are not included in reportable segments, such as the design, construction,and maintenance businesses of plant projects.
2. Adjustment details are as follows.
(1) Adjustment of (6) million yen for Segment income (loss) is attributable to the elimination of inter-segment transactions.
(2) Adjustment of 18,020 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 676 million yen for Depreciation and amortization is depreciation and amortization of common assets thatare not allocated to each reportable segment.
(4) Adjustment of 1,035 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 income in the consolidated income statement.

- 13 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2020

Current consolidated fiscal year (April 1, 2019 to March 31, 2020)
Reportable segment

Polymers

Advanced
Materials

Fibers &Textiles

Other(Note 1)
Total

Total

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

Net sales
Net sales to outside
56,411
13,09349,894
119,399
137
119,537—
119,537
customers
Inter-segment sales or
9,264
712
509
10,48518
10,504(10,504)—
transfer
Total
65,676
13,80550,403
129,885156
130,041(10,504)
119,537
Segment income (loss)
5,288
1,066
(589)
5,765
(289)
5,475
(8)
5,467
Segment assets
108,397
17,42047,134
172,951
5,949
178,900
14,825
193,726
Other items
Depreciation and
3,795
353
480
4,629
3
4,633
700
5,333
amortization
Increase in property, plantand equipment and
6,598
836
810
8,246
24
8,271
1,435
9,707
intangible assets(Note) 1. The Other segment includes business segments that are not included in reportable segments.
2. Adjustment details are as follows.
(1) Adjustment of (8) million yen for Segment income (loss) is attributable to the elimination of inter-segment transactions.
(2) Adjustment of 14,825 million yen for Segment assets includes investment of surplus funds (cash and deposits) by theparent company, long-term investment funds (investment securities) and assets, etc. related to the Administration and the
Research and Development Division of the parent company.
(3) Adjustment of 700 million yen for Depreciation and amortization is depreciation and amortization of common assets thatare not allocated to each reportable segment.
(4) Adjustment of 1,435 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 income in consolidated income statement.

- 14 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2020

(Per share information)
Previous consolidated fiscal year
(April 1, 2018 to March 31, 2019)

Current consolidated fiscal year
(April 1, 2019 to March 31, 2020)

Net assets per share

229.85 yen

188.37 yen

Profit (loss) per share

85.17 yen

(43.01) yen

Profit per share after full
dilution

52.81 yen—

(Note) 1. The Company did not present profit per share after full dilution for the current consolidated fiscal year, since it posted 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, 2019)

Current consolidated
fiscal year
(March 31, 2020)

Total net assets (millions of yen)

41,35238,933

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

28,10028,072[of which amounts to be paid in for shares of class stock(millions of yen)][24,299][24,299]

[321]

[321]

[3,479][3,451][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
13,252
10,861stock (millions of yen)
Number of common stock at the end of the fiscal year used
57,65857,658for calculating net assets per share (thousand shares)
3. The basis for the calculation of profit or loss per share and profit per share after full dilution is as follows:
Previous consolidated
Current consolidated
fiscal year
fiscal year
(April 1, 2018 to(April 1, 2019 toMarch 31, 2019)
March 31, 2020)
Profit (loss) per share
Profit (loss) attributable to owners of parent
5,232(2,158)(millions of yen)Amount not attributable to common stockholders
321
321(millions of yen)[of which preferred dividends (millions of yen)]

[321]

[321]

4,910

(2,480)57,65957,658321—[of which preferred dividends (millions of yen)]

[321]

—

Increased number of common stock (thousand shares)

41,425—[of which preferred shares (thousand shares)][41,425]—

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.

- 15 -——

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2020

4. Supplementary Materials
4. Supplemental materials(1) Results (consolidated)
OperatingprofitNet sales
Consolidated

FY ended March 2019

Full year
Q2
Full year

FY ended March 2020

(Millions of yen)
Profit attributable
Ordinary
to owners of
profitparent
7,093
5,232
2,148
(1,383)
3,153(2,158)129,098
60,486
119,537

8,144
2,866
5,467

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

Net sales to outside
customers
Results for
FY ended
Component ratio (%)
previous fiscal
March 2019year
Operating profit
Component ratio (%)
Net sales to outside
customers
Results for
FY ended
Component ratio (%)
current fiscal
March 2020
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(%)

Elimination
Consolidatedor
total
corporate

Polymers

Advanced
Materials

Fibers &Textiles

61,963

12,73952,862

1,532—

129,098

48.0
7,048
86.5

9.9
1,219
15.0

40.9
159
2.0

1.2
(275)
(3.4)

—
(6)
(0.1)

100.0
8,144
100.0

56,411

13,09349,894

137—

119,537

47.2
5,288
96.7

11.0
1,066
19.5

41.7
(589)
(10.8)

0.1
(289)
(5.3)

—
(8)
(0.1)

100.0
5,467
100.0

(5,551)353(2,968)(1,394)

(9.0)

2.8

(5.6)

(91.0)—(7.4)(1,759)

(153)

(749)

(13)

(1)

(2,676)(25.0)(12.5)———(32.9)

Other(9,561)(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)
4,129
4,448
6,074
4,481
9,316
4,765

Capitalexpenditures

FY ended March 2018 Full year
FY ended March 2019 Full year
FY ended March 2020 Full year

Interestbearing
liabilities (endof fiscal year)
3,274
105,2523,474
102,603
3,624
99,595

R&D
expenditures

Financialaccountbalance(1,182)(1,066)(1,014)

Number ofpermanent
employees(persons)
3,677
3,497
3,438

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

FY ended March 2018 Full year
FY ended March 2019 Full year
FY ended March 2020 Full year

Cash flow fromoperating activities
9,739
8,985
9,797

Cash flow frominvesting activities(3,231)(6,440)(10,192)- 16 -Cash flow from
Cash and cash equivalents
financing activities
at end of fiscal year
(17,207)
26,169(6,519)22,122(3,482)
18,194