Member of Financial Accounting Standards Foundation

Financial Results for the 1st Nine-Month Period of Fiscal Year Ending
March 31, 2009
February 6, 2009

Company name: Unitika Ltd.
Code number: 3103
URL: http://www.unitika.co.jp/e/home.htm
Representative: Otofumi Onishi, President and Chief Executive Officer
Contact: Kazuo Otsuki, General Manager of Accounting Department
Expected submission of quarterly report: February 12, 2009

Listed stock exchange: Tokyo Stock Exchange,
Osaka Securities Exchange
TEL +81-6-6281-5721(Figures less than one million yen were omitted.)

1. Consolidated performance for 1st nine-month period of fiscal year ending March 31, 2009
(April 1, 2008 to December 31, 2008)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)

1st nine-month period of FY ending March 31, 2009
1st nine-month period of FY ended March 31, 2008

Net sales
Operating income
Ordinary income
Net income
Millions of% Millions of% Millions of% Millions of
%
yen
yen
yen
yen
157,514 ⎯
4,530 ⎯
1,570 ⎯
19 ⎯
169,684
9.1
6,263 (13.0)
3,585 (27.5)
1,462 (29.7)
Net income per share
Yen
0.04
3.08

1st nine-month period of FY ending March 31, 2009
1st nine-month period of FY ended March 31, 2008

Net income per share after
full dilution
Yen⎯⎯(2) Consolidated financial situation
Capital adequacy
Net assets per shareratio
Millions of yen
Millions of yen%
Yen
1st nine-month period of FY ending March 31, 2009
311,972
35,150
10.0
65.70
Fiscal year ended March 31, 2008
309,043
38,37810.9
70.67(Reference) Shareholders’ equity
1st nine-month period of fiscal year ending March 31, 2009: 31,242 million yen
Fiscal year ended March 31, 2008: 33,611 million yen
Total assets

Net assets

2. Dividend payment(Base date)
FY ended March 31, 2008
FY ending March 31, 2009
FY ending March 31, 2009 (forecast)(Note) Revision of dividend forecast for the current quarter: No

End of Q1
Yen
⎯
⎯
⎯⎯

Dividend per share
End of Q2
End of Q3
Yen
Yen
0.00
⎯
0.00
⎯⎯
⎯⎯
⎯

Year end
Yen
2.00
⎯⎯
2.00

Annual
Yen
2.00
⎯⎯
2.00

3. Forecast of consolidated performance for fiscal year ending March 31, 2009
(April 1, 2008 to March 31, 2009)(Percentages represent changes from same period in previous year.)
Net income
Ordinary income
Net income
per share
Millions of% Millions of% Millions of% Millions of
%
Yen
yen
yen
yen
yen
Fiscal year ending March 31, 2009
233,000(0.7)
9,000 (22.1)
5,500 (31.4)
1,000 (35.5)
2.10(Note) Revision of forecast of consolidated performance for the current quarter: No
Net sales

Operating income-1-4. Others(1) Changes in significant subsidiaries during the term (changes in specified subsidiaries accompanying
change of scope of consolidation): No(2) Adoption of simplified accounting method and special accounting practices for preparation of quarterly
consolidated financial statements: Yes(Note) For details, please refer to [Qualitative information and financial statements] and “4. Others” onpage 4.
(3) Changes in accounting principles, procedures and presentations for preparation of quarterly
consolidated financial statements (those included in “Changes in Important Matters for Preparation of
Quarterly Consolidated Financial Statements”)
c Changes associated with revision in accounting standards: Yesd Other changes: Yes(Note) For details, please refer to [Qualitative information and financial statements] and “4. Others”
on page 4.
(4) Number of shares outstanding (Common stock)c Number of shares outstanding at end of term (including treasury stock):
1st nine-month period of fiscal year ending March 31, 2009: 475,969,000 sharesFiscal year ended March 31, 2008:
475,969,000 sharesd Number of treasury stocks at end of term
1st nine-month period of fiscal year ending March 31, 2009: 425,288 sharesFiscal year ended March 31, 2008:
393,124 shares
e Average number of shares outstanding during the term (quarterly consolidated accumulated period)
1st nine-month period of fiscal year ending March 31, 2009: 475,562,450 shares
1st nine-month period of fiscal year ended March 31, 2008: 475,601,196 shares* Explanation on appropriate use of forecasts of performance and other special items
1. The forward-looking statements in this document concerning the forecast of performance for the fiscal
year ending March 31, 2009 are based on currently available information and assumptions considered by
the company to be reasonable. The actual performance may be significantly different from the forecast
due to various factors. For the forecast of performance, please refer to [Qualitative information andfinancial statements] and “3. Qualitative information on the forecast of consolidated performance” onpage 4.
2. Effective from the fiscal year ending March 31, 2009, “Accounting Standard for Quarterly Financial
Statements” (ASBJ Statement No. 12) and “Implementation Guidance for Accounting Standards for
Quarterly Financial Statements” (ASBJ Guidance No.14) have been applied. The quarterly consolidated
financial statements were prepared in accordance with “Regulations for Quarterly Consolidated Financial
Statements.”-2-

Unitika Ltd. (3103)

Financial results for the 1st nine-month period of fiscal year ending March 31, 2009

[Qualitative information and financial statements]
1. Qualitative information on consolidated performance
In the first nine-month period of the fiscal year ending March 31, 2009 (April 1, 2008 to December 31,2008), resource prices turned downward; however, the Company saw sales and profits decrease
substantially due to the spread of negative effects of the sharp slowdown in global activity. Consequently,
the Company reported the following results: net sales of 157,514 million yen, operating income of 4,530
million yen, ordinary income of 1,570 million yen, and net income of 19 million yen.
Here is a summary of business by segment.
[Polymers]
In the film business, profitability temporarily improved thanks to a decline in material prices as well as
effects of cost-cutting measures, but sales volumes of package film and industrial film decreased
substantially toward the end of the quarter in domestic and overseas markets. In the resin business,earnings were sluggish due to a substantial decline in demand from the automobile and electronics
industries. In the non-woven fabrics business, earnings of household materials was relatively steady, butearnings of industrial materials, which are used in the automobile, construction and civil engineering
industries, declined.
[Environmental Business/Advanced Materials]
In the environmental business, earnings deteriorated since orders continued to decrease following the cutback in public works budgets; more intensified competition and the rise in material prices up to the firsthalf of the year cut into profits. In the advanced materials business, shipment of activated carbon fibers
began slowing down and shipment of glass fibers for automobiles and industrial materials use also
remained weak. Sales of IC cloth were affected by inventory adjustment in the electronics industry. Salesof glass beads for reflective materials failed to increase due to appreciation of the yen.
[Fibers & Textiles]
In the synthetic fiber business, sales declined over a wide range of industrial materials including
construction, engineering works and automobiles in addition to clothing due to the economic slowdown
and the yen’s appreciation. Shipment of nylon fibers and long staple and short-fiber polyester also
remained weak. In the vinylon fiber business, export of vinylon fiber was relatively strong for reinforced
concrete use, but shipment in the domestic market was affected by sluggish demand in the civilengineering and building construction industries. In the natural fiber business, sales declined substantiallyin each field including the uniform, general clothing, and bed & bedding.
[Health & Amenity, Others]
In the health & amenity business, medical business sales were almost in line with the forecast, but dietary
supplement sales were sluggish. In other businesses, earnings decreased from the real estate business,
including sales of condominiums.
2. Qualitative information on consolidated financial positions
Total assets amounted to 311,972 million yen, an increase of 2,929 million yen, compared with the end of
the previous fiscal year. This is mainly due to an increase in inventories. Liabilities totaled 276,822
million yen, an increase of 6,157 million yen, compared with the end of the previous fiscal year. This ismainly due to an increase in loans payable. Net assets amounted to 35,150 million yen, down 3,227
million yen compared with the end of the previous fiscal year. This is mainly due to a decrease in retained
earnings caused by dividend payment, reversal of revaluation reserve for land in some overseas
subsidiaries caused by unification of accounting procedures in overseas subsidiaries, and a decrease inminority interests caused by additional purchases of subsidiaries’ equities.
Here is a summary of the cash flow situation.
(Net cash provided by [used in] operating activities)
Net cash used in operating activities amounted to 2,709 million yen due to an increase in inventories anddecrease in notes and accounts payable trade during the first nine-month period of the fiscal year ending-3-

Unitika Ltd. (3103)

Financial results for the 1st nine-month period of fiscal year ending March 31, 2009

March 31, 2009.
(Net cash provided by [used in] investment activities)
Net cash used in investment activities amounted to 5,723 million yen due to capital expenditures of 5,686
million yen during the first nine-month period of the fiscal year ending March 31, 2009.
(Net cash provided by [used in] financing activities)
Net cash provided by financing activities amounted to 11,209 million yen due to an increase in loans
payable during the first nine-month period of the fiscal year ending March 31, 2009.
As a result, cash and cash equivalents at the end of the first nine-month period of the fiscal year ending
March 31, 2009 amounted to 15,530 million yen, an increase of 2,321 million yen compared with the endof the previous fiscal year.
3. Qualitative information on the forecast of consolidated performance
The Company did not revise the forecast of consolidated performance for the fiscal year ending March 31,
2009 announced on October 28, 2008.
4. Others(1) Changes in significant subsidiaries during the term (changes in specified subsidiaries accompanying
change of scope of consolidation):
Not applicable(2) Adoption of simplified accounting method and special accounting practices for preparation of quarterly
consolidated financial statements:
In computing corporate income taxes, some consolidated subsidiaries took only major items into
account in terms of additions and deductions for the income and tax credits.
(3) Changes in accounting principles, procedures and presentations for preparation of quarterly
consolidated financial statementsc Effective from the fiscal year ending March 31, 2009, “Accounting Standard for Quarterly
Financial Statements” (ASBJ Statement No. 12) and “Implementation Guidance for AccountingStandards for Quarterly Financial Statements” (ASBJ Guidance No.14) have been applied. The
quarterly consolidated financial statements were prepared in accordance with “Regulations for
Quarterly Consolidated Financial Statements.”
d Effective from the first quarter of the consolidated fiscal year ending March 31, 2009, the“Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for
Consolidated Financial Statements” (ASBJ PITF No. 18 on May 17, 2006) has been applied.
Accordingly, some revisions were made to the consolidated accounts, as necessary. Consequently,
total assets and net assets as of the end of the third quarter of the consolidated fiscal year decreasedby 522 million yen and 595 million yen, respectively, from those obtained by the previous method.
There was only a minor impact on operating income, ordinary income, and net income before
income taxes for the current first nine-month period.
e Finance lease transactions without title transfer were formerly accounted for in accordance with themethod conforming to ordinary rental transactions. “Accounting Standard for Lease Transactions”(ASBJ Statement No.13 [Business Accounting Council, the First Committee on June 17, 1993]
revised on March 30, 2007) and “Guidance on Accounting Standard for Lease Transactions”(ASBJ Guidance No. 16 [The Japanese Institute of Certified Public Accountants, Committee of
Accounting System on January 18, 1994] revised on March 30, 2007) have become applicable tothe preparation of quarterly consolidated financial statements for consolidated fiscal years
commencing on and after April 1, 2008. Effective from the first quarter of the consolidated fiscal
year ending March 31, 2009, these standards have been applied and finance lease transactions
without title transfer were accounted for in a similar manner with ordinary sale and purchasetransactions. Leased assets related to finance lease transactions without title transfer are
depreciated on a straight-line basis, with the lease periods as their useful lives and no residual-4-Unitika Ltd. (3103)

Financial results for the 1st nine-month period of fiscal year ending March 31, 2009

value. This revision has no impact on operating income, ordinary income, and net income before
income taxes for the current first nine-month period.
(Additional information)f The company revised its employees’ severance payment plan on April 1, 2008, shifting part of
future payment of pension benefits to the defined contribution plan from the defined benefit plan.
Consequently, past service liabilities (reduction of liabilities) of 652 million yen were incurred.
g Taking advantage of the revision of ministerial ordinances on useful life, the company and some ofits consolidated subsidiaries reviewed use of their assets and shortened useful life of somemachines and equipment from ten years to seven years in the first quarter of the fiscal year ending
March 31, 2009. There was only a minor impact on operating income, ordinary income, and net
income before income taxes for the current first nine-month period from the revision.

-5-

Unitika Ltd. (3103)

Financial results for the 1st nine-month period of fiscal year ending March 31, 2009

5. Quarterly financial statements(1) Consolidated quarterly balance sheets

End of Q3 of FY
ending March 2009
(December 31, 2008)(Unit: Millions of yen)
Condensed
consolidated balance
sheet for previous FY(March 31, 2008)

16,352
44,341
41,406
20,989
5,109
8,022
(55)

13,04550,03939,171
18,167
4,883
8,536
(65)

136,166

133,779

106,554
58,652

107,382
56,629165,207

164,012

449
849

554
944

1,298

1,498

10,393(1,093)

10,580(826)

9,299
175,806
311,972

9,753
175,264
309,043

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Land
Other (net value)
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 noncurrent assets
Total assets-6-Unitika Ltd. (3103)

Financial results for the 1st nine-month period of fiscal year ending March 31, 2009

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds
Income taxes payable
Provision for bonuses
Provision for warranties for completed construction
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Provision for retirement benefits
Provision for directors’ retirement benefits
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets-7-

End of Q3 of FY
ending March 2009
(December 31, 2008)(Unit: Millions of yen)
Condensed
consolidated balance
sheet for previous FY(March 31, 2008)

32,31983,57632,883
400
413
480
33
15,55938,38572,27356,489
400
952
2,265
116
15,290165,665

186,172600
90,146
4,209
342
15,858800
62,823
3,483
408
16,977111,156

84,492276,822

270,665

23,798
1,661
6,168
(45)

23,798
1,661
7,196
(43)

31,581

32,612

(447)
(5)
2,927
(2,813)

(120)
(11)
3,484
(2,354)

(339)

998

3,907

4,767

35,15038,378311,972

309,043

Unitika Ltd. (3103)

Financial results for the 1st nine-month period of fiscal year ending March 31, 2009

(2) Consolidated quarterly statements of income(1st nine-month period ended December 31, 2008)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other personal expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Total extraordinary income
Extraordinary losses
Loss on disposal of noncurrent assets
Loss on valuation of investment securities
Business structure improvement expenses
Other
Total extraordinary losses
Quarterly net loss before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Minority interests in income
Quarterly net income(Unit: Millions of yen)
1st nine-month period ended
December 31, 2008
(April 1, 2008 to
December 31, 2008)
157,514
129,846
27,667
23,137
4,530
227
120
136
1,549
2,034
2,939
920
1,134
4,995
1,570
33
33
407
473
1,044
665
2,590
(987)
433
(1,551)(1,117)
110
19

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Unitika Ltd. (3103)

Financial results for the 1st nine-month period of fiscal year ending March 31, 2009

(3) Consolidated quarterly statements of cash flows(Unit: Millions of yen)
1st nine-month period ended
December 31, 2008
(April 1, 2008 to
December 31, 2008)
Net cash provided by (used in) operating activities
Quarterly net loss before income taxes
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Interest expenses
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other
Sub-totalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investment 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
Other
Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Cash dividends paid
Other
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

-9-

(987)
5,457
303
2,939
5,706
(5,236)(6,088)(1,534)560
362(2,637)(994)(2,709)14(20)
1(5,686)283(315)(5,723)
8,793
49,495(45,585)
(200)
(939)
(354)
11,209(454)
2,321
13,20915,530Unitika Ltd. (3103)

Financial results for the 1st nine-month period of fiscal year ending March 31, 2009

Effective from the fiscal year ending March 31, 2009, “Accounting Standard for Quarterly Financial
Statements” (ASBJ Statement No. 12) and “Implementation Guidance for Accounting Standards for
Quarterly Financial Statements” (ASBJ Guidance No.14) have been applied. The company’s quarterly
consolidated financial statements were prepared in accordance with “Regulations for Quarterly
Consolidated Financial Statements.”(4) Notes on going concern assumption
Not applicable(5) Segment informationa. Segment information by business1st nine-month period ended December 31, 2008 (April 1, 2008 to December 31, 2008)(Unit: Millions of yen)
Polymers

Environmental
Business/
Advanced
Materials

Net sales(1) Net sales to outside
customers(2) Inter-segment sales
or transfers

55,42020,875

2,600

516

1,742

2,968

Total

58,021

21,391

71,17914,750

5,669

300

(344)

638

6,264

Operating income

Fibers &Textiles69,436

Health &Amenity,
Others11,781

Total

Eliminationor corporate

Consolidated
total

⎯

157,514

7,827[7,827]

165,342[7,827]⎯
157,514[1,734]

4,530

157,514b. Segment information by geographic area
1st nine-month period ended December 31, 2008 (April 1, 2008 to December 31, 2008)
Segment information by geographic area is omitted, since sales in Japan exceed 90% of total sales ofall segments.
c. Overseas sales
1st nine-month period ended December 31, 2008 (April 1, 2008 to December 31, 2008)
23,911I. Overseas sales (million yen)
157,514
II. Consolidated sales (million yen)
15.2
III. Ratio of overseas sales to consolidated sales (%)(Note) Only total overseas sales were provided, since there were no segments whose overseas sales
exceeded 10% of consolidated sales.
(6) Notes on significant changes in the amount of shareholders’ equity
Not applicable- 10 -

Unitika Ltd. (3103)

Financial results for the 1st nine-month period of fiscal year ending March 31, 2009

“Reference material”
Financial statements for the 1st nine-month period of the previous fiscal year
(1) (Summary) Consolidated statements of income for the 1st nine-month period ended December 31, 2007
9-month period ended
December 31, 2007

Account title(April 1, 2007 to December 31, 2007)

Amount (million yen)
169,684
140,174
29,51023,247
6,263

I. Net sales
II. Cost of sales
Gross profit
III. Selling, general and administrative expenses
Operating income
IV. Non-operating income
Interest income & dividends income
Equity in earnings of affiliates
Other
Total non-operating income
V. Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
VI. Extraordinary income
VII. Extraordinary loss
Net income before income taxes
Tax expenses
Minority interests in income
Net income

320
615
1,592
2,528
3,062
2,143
5,206
3,585
1,269
2,233
2,621
1,279
(120)
1,462

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Unitika Ltd. (3103)

Financial results for the 1st nine-month period of fiscal year ending March 31, 2009(2) Segment information
Segment information by business1st nine-month period ended December 31, 2007 (April 1, 2007 to December 31, 2007)(Unit: Millions of yen)
Polymers

Environmental
Business/
Advanced
Materials

Fibers &TextilesHealth &Amenity,
OthersTotal

Net sales(1) Net sales tooutside customers(2) Inter-segment
sales or transfers

53,08823,41177,736

15,448

169,684

2,985

439

499

2,635

Total

56,07423,85078,235

Operating expenses

51,68022,78077,405

Eliminationor corporate

Consolidated
total

⎯

169,684

6,559[6,559]18,083

176,244[6,559]⎯169,684

16,535

168,401[4,980]163,421

Operating income
4,393
1,069
829
1,548
7,842
[1,578]6,263(Note) Of operating expenses, the amount of unallocatable operating expenses included in “elimination or corporate” amounted to
1,641 million yen.

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