Member of Financial Accounting Standards Foundation

Financial Results for the 1st Quarter of the Fiscal Year Ending March 31, 2016
August 5, 2015
Listed stock exchanges: Tokyo Stock Exchange
Company name: Unitika Ltd.
Code number: 3103
URL: http://www.unitika.co.jp/e/home.htm
Representative: Hiroyuki Shime, President and Chief Executive Officer
Contact: Shoji Ishikawa, Executive Officer, General Manager of Accounting Department
Expected submission of quarterly report: August 12, 2015
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

TEL: +81-6-6281-5721(Figures rounded to nearest million yen.)
1. Consolidated performance for 1st quarter of fiscal year ending March 31, 2016 (April 1, 2015 to June 30, 2015)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales

Operating income

Quarterly net income
attributable to owners ofparentOrdinary income% Millions of yen% Millions of yen% Millions of yen
35,734 (5.8)
2,273 48.2
1,852 184.2
1,552
37,931 (0.8)
1,534 (17.2)
651 (60.8)(3,361)Q1 of FY ending March 31, 2016: 1,400 million yen [ %]Q1 of FY ended March 31, 2015: (3,141) million yen [ %]Diluted quarterly net income
Quarterly net income per shareper share
Millions of yen

Q1 of FY ending March 31, 2016
Q1 of FY ended March 31, 2015
(Note) Comprehensive income

Yen
1.22

Yen
2.26
(5.83)

Q1 of FY ending March 31, 2016
Q1 of FY ended March 31, 2015

%





(2) Consolidated financial situation

Q1 of FY ending March 31, 2016
FY ended March 31, 2015
(Reference) Shareholders’ equity

Total assets
Net assets
Capital adequacy ratio
Millions of yen
Millions of yen%
227,337
32,32212.8
235,882
31,590
12.0
1st quarter of fiscal year ending March 31, 2016: 29,036 million yen
Fiscal year ended March 31, 2015: 28,354 million yen

2. Dividend payment
End of Q1Yen
FY ended March 31, 2015
FY ending March 31, 2016



Dividends per share
End of Q2
End of Q3
Yen
Yen
0.00

0.00

FY ending March 31, 2016 (forecast)Year end

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, 2016 (April 1, 2015 to March 31, 2016)(% figures represent changes from same period in the previous year.)Net sales
Millions of yen

1st half of FY ending March 31, 2016
FY ending March 31, 2016

Operating income Ordinary income%

71,000 (8.5)
145,000 (8.9)(Note) Revision of the latest forecasts of operational results: None

Millions of yen%

5,000 60.1
11,300 26.7

Millions of yen

Profit attributable toowners of parent%

Millions of yen

3,600 69.8
8,800 14.6

1,000
3,000

%




Net income
per share
Yen

0.87
3.47

Member of Financial Accounting Standards Foundation* Notes(1) Changes in significant subsidiaries during the period: Yes
New companies: ― (company name)
Excluded companies: 4 companies; (company name): Unitika Berkshire Co., Ltd., Unitika Information Systems Co., Ltd.,
Diabond Industry Co., Ltd., Unitika Environmental Technical CenterLtd.
(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: Yes
 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):
1st quarter of the fiscal year ending March 31, 2016: 577,523,433 sharesFiscal year ended March 31, 2015: 577,523,433 shares Number of treasury stocks at end of term
1st quarter of the fiscal year ending March 31, 2016: 796,891 sharesFiscal year ended March 31, 2015: 794,415 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
1st quarter of the fiscal year ending March 31, 2016: 576,728,143 shares
1st quarter of the fiscal year ended March 31, 2015: 576,740,497 shares* Information on implementation of quarterly review procedures
The summary of financial statements is not subject to quarterly review procedures in accordance with the Financial Instruments andExchange Act. At the time of disclosing the summary of financial statements, the quarterly financial statement review procedures
have been implemented.
* 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 (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:

End of Q1
Class A share
FY ended March 31, 2015
FY ending March 31, 2016
FY ending March 31, 2016 (forecast)Class B share
FY ended March 31, 2015
FY ending March 31, 2016
FY ending March 31, 2016 (forecast)Class C share
FY ended March 31, 2015
FY ending March 31, 2016
FY ending March 31, 2016 (forecast)

Yen
—
—
Yen
—
—
Yen
—
—

End of Q2

Annual dividends
End of Q3

Yen
0.00

—

0.00

—

Yen
0.00

Yen

Yen
—

Year end
Yen
8,021.90

Yen
8,021.90

12,000.00

12,000.00

Yen
15,870.00

Yen
15,870.00
23,740.00
Yen
40,109.60
60,000.00

0.00
Yen
0.00

—
—

23,740.00
Yen
40,109.60

0.00—

60,000.00

Yen

Total

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2016

 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. Matters concerning Summary Information (Notes) ............................................................................... 3(1) Changes in significant subsidiaries during the period ....................................................................... 3(2) Adoption of special accounting methods for preparing quarterly consolidated financial
statements ....................................................................................................................................... 3(3) Changes in accounting policies, changes in accounting estimates and retrospective restatements ...... 3
3. Quarterly Financial Statements ............................................................................................................. 4(1) Consolidated quarterly balance sheets .............................................................................................. 4(2) Consolidated quarterly statements of income and consolidated quarterly statements ofcomprehensive income .................................................................................................................... 6
Consolidated quarterly statements of income
Three-month period ended June 30, 2015.................................................................................... 6
Consolidated quarterly statements of comprehensive income
Three-month period ended June 30, 2015.................................................................................... 7(3) Notes on quarterly consolidated financial statements ........................................................................ 8(Notes on going concern assumption) .............................................................................................. 8(Notes on significant changes in shareholders’ equity) ..................................................................... 8(Segment information) .................................................................................................................... 8-1-

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2016

1. Qualitative Information on Quarterly Results(1) Explanation of operational results
During the first quarter of the fiscal year ending March 31, 2016 the Japanese economy continued its
modest recovery, supported by the recovery of sales mainly by exporting companies and theimprovement in employment, despite the steep rise in raw material prices due to the depreciation of the
yen and the prolonged backlash of the last-minute surge in demand before the consumption tax rateincrease. The global economy generally maintained the tone of recovery mainly supported by the
pick-up of the U.S. economy and those of other developed countries, although there remained
uncertainties in other areas, including the financial crisis in Greece and the slow-down of economic
growth in China.
Under these circumstances, the Unitika Group tried to strengthen its foundation as a functional
materials manufacturer centering on the Polymers business with the aim of achieving targets at an earlystage under the growth strategy stated in its new medium-term management plan, which started in thelast fiscal year. In addition, as a part of its business portfolio restructuring, the Group downsized orexited under-performing non-core businesses.
As a result, in the first quarter of the year ending March 31, 2016 (three months from April 1, 2015 toJune 30, 2015) the Unitika Group reported net sales of 35,734 million yen (down 5.8% year-on-year),
operating income of 2,273 million yen (up 48.2% year-on-year), ordinary income of 1,852 million yen(up 184.2% year-on-year) and net income attributable to owners of parent of 1,552 million yen (net lossof 3,361 million yen in the same period of the previous year).
Business results by segment are as stated below. In the first quarter of the current accounting year,
Unitika reformed the organizational structure and business classifications for management purposes,with the aim of achieving the goals of the medium-term management plan. In response to theserevisions, reporting segments were also reclassified. The statements referring to comparison below are
based on reclassified figures of the same period of the previous year. For details, please see 3. Quarterly
Consolidated Financial Statements, (3) Notes on quarterly consolidated financial statements (Segment
information).
[Polymers]
In the Films business, domestic sales in the packaging sector remained the same because consumption
was weak in Japan, while overseas sales increased, supported by strong sales in South East Asia. Sales
in the industrial sector increased, supported by strong sales of electric and electronic equipment
applications. Overall, sales in the Films business segment increased as a result of the decline in material
prices and cost reduction efforts.
In the Resins business, the demand for nylon resins from automobile manufacturers in Japan was weak,
while their sales in overseas markets were strong, mainly in the U.S. Sales of U-Polymer, theCompany’s original polyarylate resin for information devices were strong.
In the Non-woven Fabrics business, sales of polyester spunbond fabrics decreased, mainly in the
agricultural and building materials sectors. Meanwhile, sales of cotton spunlace increased, mainly
supported by the recovery of demand in the daily product market.
Consequently, the Polymers business posted operating income of 1,709 million yen (up 33.0%
year-on-year) on net sales of 13,719 million yen (up 0.7% year-on-year).
[Advanced Materials]
In the Glass Fibers business, sales in the industrial materials sector, mainly building-related materials,
were strong. In the electronic materials sector, sales of IC cloth for information devices were relatively
weak. In the Glass Beads business, sales for road marking applications decreased, while sales ofindustrial and reflective material applications remained strong. Meanwhile, in the Activated Carbon
Fibers business, sales in the industrial applications sector were strong, although sales in the main sectorof water purifier applications were relatively weak.
Consequently, the Advanced Materials business posted operating income of 368 million yen (up 22.7%
year-on-year) on net sales of 2,736 million yen (down 5.8% year-on-year).
[Fibers and Textiles]
In the Industrial Materials business, although sales of ultra-high strength polyester filament yarn wereweak in the field of civil engineering, overall sales improved as a result of the shift in sales focus tohigh-profit products. Sales of short-fiber polyester improved significantly as a result of downsizing ofunder-performing product sales in response to the business restructuring. Sales of vinylon fiber for
reinforced concrete applications, a replacement for asbestos, remained severe, although we havecontinued efforts to improve its profitability, including a shift to sales of high-profit products in Europe
and emerging countries.
-2-

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2016

In the Garments, Lifestyle Materials, and Bedding business, sales decreased due to weak sales in thewomen, sports and inner wear sectors.
Consequently, the Fibers and Textiles business posted operating income of 266 million yen (operating
loss of 122 million yen in the same period the previous year) on net sales of 16,277 million yen (down
7.1% year-on-year).
[Others]
In the Condominium Sales business, sales decreased because there were no new buildings completed
during the period, while all units in the condominium buildings completed last year were sold out.
Consequently, the Others category posted an operating loss of 82 million yen (operating income of 71
million yen in the same period the previous year) on net sales of 3,001 million yen (down 22.8%
year-on-year).
(2) Explanation of financial situation
Total assets decreased by 8,544 million yen from the end of the previous consolidated fiscal year to
227,337 million yen. This decrease was mainly due to the decrease in cash and deposits. Liabilities
decreased by 9,276 million yen to 195,015 million yen, mainly due to the decrease in trade payables.
Net assets increased by 731 million yen to 32,322 million yen. This was mainly due to the increase inretained earnings as a result of the reporting of net income attributable to owners of parent.
(3) Explanation of future forecast information including forecast of consolidated performance
There are no modifications to the forecasts for the first six months and the full year of the fiscal year
ending March 31, 2016 announced on May 12, 2015.
2. Matters concerning Summary Information (Notes)(1) Changes in significant subsidiaries during the period
From the first quarter of the current consolidated accounting year, Unitika Berkshire Co., Ltd., Unitika
Information Systems Co., Ltd., Diabond Industry Co., Ltd., and Unitika Environmental TechnicalCenter Ltd. were excluded from consolidation as a result of divestiture of their shares.
(2) Adoption of special accounting methods for preparing quarterly consolidated financial statements
Not applicable(3) Changes in accounting policies, changes in accounting estimates and retrospective restatements(Changes in accounting policies)(Application of Accounting Standards for Business Combination)
From the first quarter of the current consolidated accounting year, the Company adopted the AccountingStandard for Business Combination (ASBJ Statement No. 21, September 13, 2013, hereinafter the"Business Combination Accounting Standards"), the Accounting Standards for Consolidated Financial
Statements (ASBJ Statement No. 22, September 13, 2013, hereinafter the "Consolidated AccountingStandards"), and the Accounting Standard for Business Divestitures (ASBJ Statement No. 7, September
13, 2013, hereinafter the "Business Divestitures Accounting Standards"). In response to the adoption ofthese standards, the Company changed the accounting treatment of the Company's equity in subsidiaries
under the control of the Company. Specifically, differences resulting from the Company's acquisition ofshares of subsidiaries are recorded as a capital surplus, and the costs related to those acquisitions arerecorded as expenses for the fiscal year in which the acquisitions are made. For business combinationsin and after the first quarter of the current consolidated accounting year, the method to allocateacquisition costs has changed. The acquisition cost modified by temporary accounting is allocated to theconsolidated financial statements for the quarter in which the business combination is implemented. In
addition, the presentation of net income has also changed. And the presentation as a "minority interests"
has changed to "non-controlling interests”. To reflect these changes, presentations in the consolidated
financial statements for the first quarter and the full year of the previous consolidated fiscal year werereclassified.
In adopting the Business Combination Accounting Standards, etc., the Company adopts the transitional
treatments as stipulated in Article 58-2 (4) of the same Standards, Article 44-5 (4) of the Consolidated
Accounting Standards, and Article 57-4 (4) of the Business Divestiture Accounting Standards in andafter the beginning of the first quarter of the current consolidated accounting year.
As a result, operating income, ordinary income and net income before income taxes for the first quarterof the current consolidated accounting year increased by 2 million yen, respectively. Capital surplus asof the end of the first quarter (June 30, 2015) decreased by 47 million yen.
-3-

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2016

3. Quarterly Financial Statements(1) Consolidated quarterly balance sheets(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2015)
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
Land
Other, net
Total property plant and equipment
Intangible assets
Goodwill
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-

Q1 of FY ending March 2016
(June 30, 2015)

31,73839,05937,3774,800(161)
112,814

26,43036,29137,366
4,952(167)
104,874

76,90439,538116,443

76,46739,306
115,774

4
1,480
1,485

3
1,476
1,480

5,382
(243)
5,138
123,067
235,882

5,322
(114)
5,208
122,462
227,337

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2016

(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2015)
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-

Q1 of FY ending March 2016
(June 30, 2015)

20,368
2,072
1,703
461
1,531
3,947
1,751
12,00543,842

16,431
2,148
1,123
93
733
3,650
1,621
10,85636,656130,127
26
12,353
17,941
160,449
204,291

129,1127
11,455
17,782
158,358
195,015100
60,275(31,138)(45)
29,191

100
28,4481,526(45)
30,030

468

585

(224)
5,165
(2,807)(3,439)(837)
3,236
31,590235,882

(208)
5,165
(3,181)(3,355)(994)
3,286
32,322
227,337

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2016

(2) Consolidated quarterly statements of income and consolidated quarterly statements of comprehensive
income(Consolidated quarterly statements of income)(Three-month period ended June 30, 2015)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using
equity method
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of shares of subsidiaries andassociates
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment loss
Business structure improvement expenses
Other
Total extraordinary losses
Income (loss) before income taxes and minority
interests
Income taxes-current
Income taxes-deferred
Total income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent

Three-month period
ended June 30, 2014
(April 1, 2014 toJune 30, 2014)
37,93130,491
7,439
5,905
1,534
22
40
165
228

3
38
161
206
409

725
0

605
5

384
1,110
651

219
830
1,852



375



375

99
1,257
1,160
15
2,532
(1,881)

76
211
59
347
1,880

95
1,376
1,472
(3,353)8(3,361)

(2)
308
306
1,574
21
1,552



-6-

(Unit: Millions of yen)Three-month period
ended June 30, 2015
(April 1, 2015 toJune 30, 2015)
35,73428,358
7,376
5,103
2,273



Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2016

(Consolidated quarterly statements of comprehensive income)(Three-month period ended June 30, 2015)(Unit: Millions of yen)Three-month period ended
June 30, 2014
(April 1, 2014 to June 30, 2014)

Three-month period ended
June 30, 2015
(April 1, 2015 to June 30, 2015)(3,353)

1,574

35
11
(177)
342
211
(3,141)

117
16
(392)
84
(174)
1,400

(3,102)

1,395

(39)

4

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests-7-

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2016(3) Notes on quarterly consolidated financial statements(Notes on going concern assumption)
Not applicable(Notes on significant changes in shareholders’ equity)
Not applicable(Segment information)
Segment Information
I. Three-month period ended June 30, 2014 (April 1, 2014 to June 30, 2014)
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

Figure in quarterly
consolidated
Adjustment
statements ofincome(Note 2)

Net sales
Net sales to outside customers
Inter-segment sales or transfers

13,622
2,854

2,903
229

17,519263

34,046
3,347

3,885
520

37,931
3,867—(3,867)37,931—

Total

16,477

3,133

17,78237,393

4,405

41,799(3,867)37,931

Segment income (loss)
1,285
300
(122)
1,462
71
1,534
(0)
1,534
(Notes) 1. The Other category comprises business segments that are not included in reportable segments. It includes Environmental
business, Medical business, Healthcare & Amenity business, and Real Estate-related business and the like.
2. Segment income (loss) is adjusted with operating income in consolidated statements of income.

II. Three-month period ended June 30, 2015 (April 1, 2015 to June 30, 2015)
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

Figure in quarterly
consolidated
Adjustment
statements ofincome(Note 2)

Net sales
Net sales to outside customers
Inter-segment sales or transfers

13,719
2,688

2,736
270

16,277196

32,733
3,154

3,001
255

35,734
3,410—(3,410)35,734—

Total

16,407

3,006

16,47335,8883,257

39,145(3,410)35,734

Segment income (loss)
1,709
368
266
2,344
(82)
2,262
11
2,273
(Notes) 1. The Other category comprises business segments that are not included in reportable segments. It includes Environmental
business and Real Estate-related business and the like.
2. Segment income (loss) is adjusted with operating income in consolidated statements of income.

2. Information related to the reclassification of reporting segments
In the first quarter of the current consolidated accounting year, Unitika reformed theorganizational structure and business classifications for management purposes, with the aim ofachieving the goals of the medium-term management plan. In response to these revisions, theclassification of reporting segments for certain consolidated subsidiaries were also revised.
In addition, as for operating expenses, part of retirement benefit costs and part of R&D expenses,
which were included in the adjustment item in the past, are allocated to relevant segments.
The segment information for the first quarter of the previous consolidated fiscal year wasreclassified as the segment information after this revision.

-8-