Unitika : Feb. 7, 2022 Financial Results for the 3rd Quarter of the Fiscal Year Ending March 31, 2022 (0.2MB)PDF

Member of Financial Accounting Standards Foundation

Financial Results for the 3rd Quarter of the Fiscal Year Ending March 31, 2022

		February 7, 2022
		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: February 10, 2022
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, 2022 (April 1, 2021 to December 31, 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	%
Q3 of FY ending March 31, 2022	83,991	⎯	4,895	9.8	4,525	53.7	3,136	(32.1)
Q3 of FY ended March 31, 2021	81,653	(8.0)	4,459	15.8	2,943	0.9	4,622	⎯

(Note) Comprehensive income	Q3 of FY ending March 31, 2022: 4,006 million yen [(22.3%)]
	Q3 of FY ended March 31, 2021: 5,159 million yen [⎯%]
	Quarterly profit per share	Diluted quarterly profit per share
Q3 of FY ending March 31, 2022	Yen	Yen
50.20	25.37
Q3 of FY ended March 31, 2021	75.97	36.55

(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 third quarter of the consolidated fiscal year ending March 31, 2022 show the amount after the above-mentioned accounting standard, etc. have been applied, and the year-on-year percentage change in net sales for the third 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
Q3 of FY ending March 31, 2022	Millions of yen	Millions of yen				%
194,027	44,877				22.2
FY ended March 31, 2021	190,403	41,192				20.7
(Reference) Shareholders' equity	3rd quarter of fiscal	year ending March 31, 2022: 43,081 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	⎯	0.00	⎯
FY ending March 31, 2022 (forecast)						0.00	0.00

(Note) Revision of the latest dividend forecast: None

(Note) The abovementioned Dividend payment refers to dividends paid to the holders of common stock. For details of dividend payment to 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.

Member of Financial Accounting Standards Foundation

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
FY ending March 31, 2022	116,500	⎯	6,600	9.7	5,400	0.3	4,000	3.5	63.80

(Note) Revision of the latest forecasts of operational results: No

(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. have been applied, and the year-on-year percentage change in net sales for the full year of the consolidated fiscal year ending March 31, 2022 has 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): No
   New companies: ⎯ (company name)
   Excluded companies: ⎯ (company name)
2. Adoption of special accounting methods for preparing quarterly consolidated financial statements: No
3. Changes in accounting policies, changes in accounting estimates and retrospective restatement

1. • Changes in accounting policies due to revisions of accounting standards: Yes  Changes of accounting policies other than the above: No

    Changes in accounting estimates: No

    Retrospective restatement: No

   (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.

2. Number of shares outstanding (Common stock)
3. • Number of shares outstanding at end of term (including treasury stock):

3rd 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 stocks at end of term
  3rd quarter of the fiscal year ending March 31, 2022: 95,675 shares

Fiscal year ended March 31, 2021: 95,236 shares

• • Average number of shares outstanding during the term (quarterly consolidated accumulated period) 3rd quarter of the fiscal year ending March 31, 2022: 57,656,940 shares
    3rd quarter of the fiscal year ended March 31, 2021: 57,657,784 shares
• This brief report of quarterly financial statements is not subject to audit procedures by a certified public accountant or an independent auditor.
• Explanation on appropriate use of forecasts of performance and other special items

(Note on forward-looking statements)

The forward-looking statements in this document concerning forecasting of performance etc. are based on currently available information 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 numerous 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 (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 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		-	0.00		-
FY ending March 31, 2022 (forecast)						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		-	0.00		-
FY ending March 31, 2022 (forecast)						23,740.00	23,740.00

Unitika Ltd. (3103) Financial Results for 3rd 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
	Nine-month period ended December 31, 2021 ................................................................................................	6
	Quarterly consolidated statements of comprehensive income
	Nine-month period ended December 31, 2021 ................................................................................................	7
(3)	Notes on quarterly consolidated financial statements ..........................................................................................	8
	(Notes on assumption of going concern) .............................................................................................................	8
	(Notes on significant changes 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 3rd 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, the Company's accounting method for revenue recognition for the first nine-month period of the consolidated fiscal year ending March 31, 2022 (April 1, 2021 to December 31, 2021) differed from that for the first nine-month period of the previous consolidated fiscal year (April 1, 2020 to December 31, 2020). Thereby, in the explanation on operational results for the first nine-month period of the consolidated fiscal year ending March 31, 2022, the Company explained net sales without describing the year-on-year amount and percentage changes.

During the first nine-month period of the consolidated fiscal year under review, regarding the Japanese economy, demand recovered for manufacturing industries and service businesses after the declaration of a State of Emergency was called off. On the other hand, the global economy accelerated its recovery pace since the spread of new coronavirus infection (hereinafter "COVID-19") temporally came to a halt. However, the global economic outlook continued to be uncertain toward the end of the period. This was because of growing concerns over the possibility that the recovery of demand would suddenly stop due to the rapid spread of COVID-19 variant infections, mainly in Europe and the U.S., a worldwide supply shortage of components and raw materials and subsequent rise in their prices, sea transportation bottlenecks and a succeeding increase in transportation costs, and concerns over geopolitical tensions between the U.S. and China.

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.

Consequently, the Group reported net sales of 83,991 million yen (versus net sales of 81,653 million yen in the previous year), operating profit of 4,895 million yen (up 9.8% year on year), ordinary profit of 4,525 million yen (up 53.7% year on year), and profit attributable to owners of parent of 3,136 million yen (down 32.1% year on year) in the first nine-month period of the consolidated fiscal year under review. The application of the Accounting Standard for Revenue Recognition, etc. caused net sales to decrease by 2,260 million yen.

Here is an overview of the business results by segment.

[Polymers Segment]

The Polymers Segment suffered negative impacts of rising raw material and fuel prices,. However, the segment saw demand, which declined in the previous year due to the COVID-19 pandemic, recover and sales grow steadily throughout the period under review.

In the Films business, the packaging sector saw sales grow in food package applications due to continuous demand from staying at home despite the negative impact of soaring raw material and fuel prices. Furthermore, sales of environmentally friendly food package films, which contribute to the reduction of CO2 emissions, also increased steadily. In the industrial sector, sales were robust, mainly in electric and electronic applications, while sales of high-value-added products, such as "UNIPEEL," a silicon-free release PET film, also increased steadily. Accordingly, the Films business saw net sales and profit grow.

In the Plastics business, sales as a whole increased, supported by a continuous strong demand in electric and electronic applications despite a delay in recovery of demand in automotive applications. Demand for nylon resins and "U-Polymer," a polyarylate resin, was robust in electrical and electronics applications. Sales of "XecoT," a high-heat-resistant aromatic polyamide resin, grew steadily since the resin was newly adopted in automotive applications and electric and electronic applications. Sales of raw materials for other functional resins were also strong. Accordingly, the Plastics business saw net sales and profit grow.

Consequently, the Polymers segment posted operating profit of 5,553 million yen (up 31.8% year on year) on net sales of 37,881 million yen (versus net sales of 30,685 million yen in the previous year). The application of the Accounting Standard for Revenue Recognition, etc. caused net sales to increase by 2,448 million yen.

[Performance Materials Segment]

The Performance Materials Segment saw sales as a whole grow since demand, which decreased due to the COVID-19 pandemic in the previous year, recovered in the construction and civil engineering applications. However, the segment had tough times since it suffered negative impact of a rise in cost caused by rising raw material and fuel prices and turmoil in the ocean freight network.

In the Activated Carbon Fibers business, sales for mainstay water purifier applications were steady due to the expansion of demand for housing-equipment-related applications, supported by staying at home and spending and a rise in health consciousness. Furthermore, sales for VOC removal applications and environment-related applications grew strongly.

In the Glass Fibers business, in the industrial materials sector, demand continued recovering in electric- and electronic-related material applications. Demand for building and civil engineering applications, such as tents and sheets, also picked up from the decline in demand caused by the COVID-19 pandemic in the previous year. In the electronic materials sector, sales of IC cloth remained robust for semiconductor 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, remained strong.

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