Unitika : Aug. 5, 2021 Financial Results for the 1st Quarter of the Fiscal Year Ending March 31, 2022 (0.2MB)PDF

Member of Financial Accounting Standards Foundation

Financial Results for the 1st Quarter of the Fiscal Year Ending March 31, 2022

		August 5, 2021
		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: [phone]
Expected submission of quarterly report: August 10, 2021
Expected commencement date for paying dividend: -

Preparation of supplementary explanation documents for quarterly financial results: None

Holding of an analyst meeting for quarterly financial results: None

(Figures rounded down to nearest million yen.)

1. Consolidated performance for 1st quarter of fiscal year ending March 31, 2022 (April 1, 2021 to June 30, 2021)

(1) Consolidated performance (accumulation)		(Percentages represent changes from same period in previous year.)
							Quarterly profit
	Net sales		Operating profit		Ordinary profit	attributable to owners of
							parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
Q1 of FY ending March 31, 2022	28,057	-	2,109	34.6	1,781	97.2	1,259	298.6
Q1 of FY ended March 31, 2021	27,290	(10.0)	1,566	7.0	903	(17.3)	315	-

(Note) Comprehensive income	Q1 of FY ending March 31, 2022: 2,317 million yen [352.5%]
	Q1 of FY ended March 31, 2021: 512 million yen [-%]
	Quarterly profit per share	Diluted quarterly profit per share
	Yen	Yen
Q1 of FY ending March 31, 2022	20.45	10.56
Q1 of FY ended March 31, 2021	4.09	2.16

(Note) The Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020), etc. have been applied from the beginning of the first quarter of the consolidated fiscal year ending March 31, 2022. Accordingly, net sales for the first quarter of the consolidated fiscal year ending March 31, 2022 show the amount after the above-mentioned accounting standard, etc. has been applied, and the year-on-year percentage change in net sales for the first quarter of the consolidated fiscal year ending March 31, 2022 has been omitted from the table above.

(2) Consolidated financial situation

		Total assets	Net assets		Capital adequacy ratio
		Millions of yen	Millions of yen			%
Q1 of FY ending March 31, 2022	192,288	43,188			21.5
FY ended March 31, 2021	190,403	41,192			20.7
(Reference) Shareholders' equity	1st quarter of fiscal	year ending March 31,	2022: 41,361 million yen
		Fiscal year ended March 31, 2021: 39,476 million yen
2. Dividend payment
			Annual dividend per share
		End of Q1	End of Q2	End of Q3	Year end	Total
		Yen	Yen		Yen		Yen	Yen
FY ended March 31, 2021		0.00			0.00	0.00
FY ending March 31, 2022	
FY ending March 31, 2022 (forecast)		0.00			0.00	0.00

(Note) Revision of the latest dividend forecast: None

(Note) The above-mentionedDividend payment refers to dividends paid to the holders of common stock. For details of dividend 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.

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3. Forecast of consolidated performance for fiscal year ending March 31, 2022 (April 1, 2021 to March 31, 2022)

(Percentages represent changes from same period in previous year.)

		Net sales		Operating profit	Ordinary profit	Profit attributable to	Profit per share
			owners of parent
		Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
1st half of FY ending March	55,000		3,400	21.5	2,700	67.6	1,700	(54.4)	26.69
31, 2022 (cumulative)
FY ending March 31, 2022	113,000		7,000	16.3	5,600	4.1	4,700	21.6	75.94

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

(Note) The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. have been applied from the beginning of the first quarter of the consolidated fiscal year ending March 31, 2022. Accordingly, the above-mentioned forecast of consolidated performance for the fiscal year ending March 31, 2022 shows the amounts after the above-mentioned accounting standard, etc. has been applied, and the year-on-year percentage changes in net sales for the first half of the consolidated fiscal year ending March 31, 2022 and for the full year of the consolidated fiscal year ending March 31, 2022 have been omitted from the table above.

* Notes

1. Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying change of scope of consolidation): None

New companies: ― (company name)

Excluded companies: ― (company name)

1. Adoption of special accounting methods for preparing quarterly consolidated financial statements: None
2. Changes in accounting policies, changes in accounting estimates and retrospective restatement  Changes in accounting policies due to revisions of accounting standards: Yes
    Changes of accounting policies other than the above: None
    Changes in accounting estimates: None

• Retrospective restatement: None

(Note) For details, please refer to 2. Quarterly Consolidated Financial Statements and Main Notes (3) Notes on quarterly consolidated financial statements (Changes in accounting policies) on page 8 of the attachment.

1. Number of shares outstanding (Common stock)

• Number of shares outstanding at end of term (including treasury stock): 1st quarter of the fiscal year ending March 31, 2022: 57,752,343 shares Fiscal year ended March 31, 2021: 57,752,343 shares
• Number of treasury shares at end of term
  1st quarter of the fiscal year ending March 31, 2022: 95,256 shares
  Fiscal year ended March 31, 2021: 95,236 shares
• Average number of shares outstanding during the term (quarterly consolidated accumulated period) 1st quarter of the fiscal year ending March 31, 2022: 57,657,096 shares
  1st quarter of the fiscal year ended March 31, 2021: 57,657,967 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
  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. Qualitative Information on Quarterly Results

1. Explanation of future forecast information including forecast of consolidated performance on page 3 of the attachment.

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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	End of Q2	End of Q3	Year end	Total
Class A share	Yen	Yen	Yen	Yen	Yen
FY ended March 31, 2021	-	0.00	-	12,000.00	12,000.00
FY ending March 31, 2022	-
FY ending March 31, 2022 (forecast)		0.00	-	12,000.00	12,000.00
Class B share	Yen	Yen	Yen	Yen	Yen
FY ended March 31, 2021	-	0.00	-	23,740.00	23,740.00
FY ending March 31, 2022	-
FY ending March 31, 2022 (forecast)		0.00	-	23,740.00	23,740.00

Unitika Ltd. (3103) Financial Results for 1st Quarter of Fiscal Year Ending March 31, 2022

• 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 of
	comprehensive income ................................................................................................................................	6
	Quarterly consolidated statements of income
	Three-month period ended June 30, 2021 ..............................................................................................	6
	Quarterly consolidated statements of comprehensive income
	Three-month period ended June 30, 2021 ..............................................................................................	7
(3)	Notes on quarterly consolidated financial statements ..................................................................................	8
	(Notes on assumption of going concern).....................................................................................................	8
	(Notes on a significant change in shareholders' equity) ..............................................................................	8
	(Changes in accounting policies).................................................................................................................	8
	(Additional information ) ............................................................................................................................	8
	(Segment information, etc.).........................................................................................................................	9

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Unitika Ltd. (3103) Financial Results for 1st Quarter of Fiscal Year Ending March 31, 2022

1. Qualitative Information on Quarterly Results

1. Explanation of operational results

The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020), etc. have been applied from the beginning of the first quarter of the consolidated fiscal year ending March 31, 2022 (April 1, 2021 to June 30, 2021). Accordingly, net sales for the first quarter of the consolidated fiscal year ending March 31, 2022 decreased from the first quarter of the previous consolidated fiscal year. Thereby, in the explanation on operational results for the first quarter of the consolidated fiscal year ending March 31, 2022, the Company explained net sales without describing the year-on-year percentage change.

During the first quarter of the consolidated fiscal year under review, the Japanese economy divided into two opposites. The re-declaration of a State of Emergency sent service businesses, such as restaurants and hotels, into a tailspin, while manufacturing industries showed steady recovery supported by robust demand from overseas. On the other hand, the global economy was on a recovery path against the background of a rebound in demand in Europe, the U.S. and China, where vaccinations progressed faster than other areas. However, the global economic outlook continued to be uncertain due to a worldwide spread of new coronavirus (hereinafter "COVID-19") variants.

Under these circumstances, the Unitika Group has been endeavoring to realize the building of strong business portfolios, promotion of global business development, and a change in business culture and mind-set-the Group's basic policies that place the strengthening of the foundation for a growth phase as the highest priority under G- STEP30, the 1st, a medium-term management plan announced in May 2020.

Consequently, the Group reported net sales of 28,057 million yen (versus net sales of 27,290 million yen in the previous year), operating profit of 2,109 million yen (up 34.6% year on year), ordinary profit of 1,781 million yen (up 97.2% year on year), and profit attributable to owners of parent of 1,259 million yen (up 298.6% year on year) in the first quarter of the consolidated fiscal year under review. The application of the Accounting Standard for Revenue Recognition, etc. caused net sales to decrease by 879 million yen.

Here is an overview of the business results by segment.

[Polymers Segment]

In the Films business, sales volume increased, contributing to steady growth, despite the negative impact of rising raw material prices. The packaging sector saw sales grow steadily due to a rise in demand from staying at home. Furthermore, sales of high-value-added products, such as EMBLEM HG, a barrier nylon film, continued to grow robustly in Japan and overseas. P.T. EMBLEM ASIA, a subsidiary in Indonesia, also performed solidly. In the industrial sector, sales were robust, mainly in semiconductor-related applications. In addition, sales of high-value- added products, such as UNIPEEL, a silicon-free release PET film, also increased steadily.

In the Plastics business, sales for automotive applications increased strongly and shipments for electrical and electronics applications were also steady, although there was negative impact from a rise in raw material prices. Sales of nylon resins increased due to a recovery in demand for mainly automotive-related applications, which decreased due to the impact of the COVID-19 pandemic in the previous year. Furthermore, sales of U-Polymer, a polyarylate resin, grew robustly for information terminal equipment applications. Sales of other raw materials were also strong since demand was on the rebound for capital-expenditure-related and construction materials, etc. applications.

Consequently, the Polymers segment posted operating profit of 2,198 million yen (up 61.1% year on year) on net sales of 12,504 million yen (versus net sales of 10,123 million yen in the previous year). The application of the Accounting Standard for Revenue Recognition, etc. caused net sales to increase by 803 million yen.

[Performance Materials Segment]

In the Activated Carbon Fibers business, sales for mainstay water purifier applications were sluggish for some applications, including commercial-use applications, due to the impact of the COVID-19 pandemic. However, demand for other applications, in general, was on the rebound. Sales for both environment-related and automotive applications were steady.

In the Glass Fibers business, in the industrial materials sector, sales of incombustible sheets were weak for building- related applications since demand for private capital expenditures didn't recover. Furthermore, sales of filters were also sluggish for environment-related applications. In the electronic materials sector, sales of IC cloth remained robust for semiconductor and module applications, such as products for information terminal equipment and peripheral equipment. Sales of high-value-added products, including super-thin products and materials with low thermal expansion, were robust.

In the Glass Beads business, sales for road and reflective material applications almost recovered from the decrease in demand caused by the impact of the COVID-19 pandemic in the previous year. Sales for industrial applications, mainly automotive, were also steady.

In the Non-woven Fabrics business, sales for building and automotive applications moderately recovered from the decline in sales due to the impact of the COVID-19 pandemic in the previous year. Sales for skin care applications continued to be sluggish due to the impact of self-restraint concerning nonessential outings. On the other hand, demand stabilized for daily product applications, such as medical gowns, and for sanitary material applications, such as disinfectant sheets, which increased sharply in the previous year.

In the Industrial Materials business, sales of polyester staple fibers grew steadily due to a rise in demand for filter applications. Furthermore, sales of ultra-high-strength polyester filament yarns for building and civil engineering

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