Member of Financial Accounting Standards Foundation

Financial Report for Fiscal Year ended March 31, 2009
May 15, 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 date for holding a regular shareholders meeting: June 26, 2009
Expected date for submitting securities report: June 26, 2009
Expected commencement date for paying dividend

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 fiscal year ended March 31, 2009 (April 1, 2008 to March 31, 2009)(Percentages represent changes from same period in previous year.)(1) Consolidated business results

Fiscal year ended March 31, 2009
Fiscal year ended March 31, 2008

Net sales
Millions%of yen209,584(10.7)
234,744
6.4

Operating income
Millions%of yen7,766(32.8)
11,553
3.4

Ordinary income
Millions%of yen3,337(58.3)
8,013(5.3)

Net income
Millions%of yen(13,983)⎯1,550(39.5)Net income per
Ratio ofshare after full Return on equity Return on asset operating income
to salesdilution
Yen
Yen
%
%
%
(29.41)(56.2)
1.1
Fiscal year ended March 31, 2009
3.7
⎯
3.26
4.5
2.5
Fiscal year ended March 31, 2008
4.9⎯
(Reference) Equity in earnings/losses of affiliates
Fiscal year ended March 31, 2009: 176 million yen
Fiscal year ended March 31, 2008: 562 million yen
Net income per
share(2) Consolidated financial situation
Total assets
Net assets
Capital adequacy ratio Net assets per share
Millions of yen
Millions of yen%
Yen
Fiscal year ended March 31, 2009
282,843
19,746
5.7
33.88
Fiscal year ended March 31, 2008
309,043
38,37810.9
70.67(Reference) Shareholders’ equity: Fiscal year ended March 31, 2009: 16,109 million yen
Fiscal year ended March 31, 2008: 33,611 million yen(3) Consolidated cash flows situation
Cash flows fromoperating activities

Cash flows frominvesting activities

Millions of yen
4,977
8,129

Fiscal year ended March 31, 2009
Fiscal year ended March 31, 2008

Millions of yen(7,419)(5,500)

Balance of cash andcash equivalents atperiod end
Millions of yen
Millions of yen
(505)
9,275
(5,113)
13,209Cash flows fromfinancing activities

2. Dividend payment
Dividend per share

⎯
⎯

0.00
0.00

⎯
⎯

2.00
0.00

2.00
0.00

Dividend Dividend
payout ratio of net
ratio
assets(consoli- (consolidated)
dated)
Millions%%of yen
951
61.3
2.8
⎯
⎯
⎯

⎯

0.00

⎯

0.00

0.00

⎯

(Base date) End of Q1 End of Q2 End of Q3 Year end
Yen
Fiscal year ended March 31, 2008
Fiscal year ended March 31, 2009
Fiscal year ending March 31, 2010
(forecast)

Yen

Yen

-1-

Annual

Yen

Yen

Total
dividends
paid(annual)3. Forecast of consolidated performance for fiscal year ending March 31, 2010 (April 1, 2009 to
March 31, 2010)

First six-month period
Full year(Percentages represent changes from same period in previous year.)
Net income
Net sales
Operating income Ordinary income
Net income
per share
Millions% Millions% Millions% Millions%
Yenof yenof yenof yenof yen87,000 (19.3)
3,500
36.7
1,500
21.3
500
(4.2)
1.05
182,000 (13.2)
8,500
9.4
4,000
19.8
3,500
7.36
⎯

4. Others(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying
change of scope of consolidation): No(2) Changes in accounting principles, procedures and method of presentations for preparation of
consolidated financial statements (those included in Changes in Important Matters for Preparation ofConsolidated Financial Statements)(i) Changes associated with revision in accounting standards: Yes(ii) Other changes: No(Note) For details, please refer to Changes in Basic Important Matters for Preparation of Consolidated
Financial Statements on page 16.
(3) Number of shares outstanding (Common stock)(i) Number of shares outstanding at end of period (including treasury stock):
Fiscal year ended March 31, 2009: 475,969,000 sharesFiscal year ended March 31, 2008: 475,969,000 shares(ii) Number of treasury stocks at end of period
Fiscal year ended March 31, 2009: 430,885 sharesFiscal year ended March 31, 2008: 393,124 shares(Note) Regarding the number of shares outstanding used as a basis for calculation of net income pershare (consolidated), please refer to Per Share Data on page 19.
(Reference) Summary of non-consolidated performance
1. Non-consolidated performance for fiscal year ended March 31, 2009 (April 1, 2008 to March 31, 2009)(1) Non-consolidated business results(Percentages represent changes from same period in previous year.)

Fiscal year ended March 31, 2009
Fiscal year ended March 31, 2008

Net sales
Millions%of yen93,163(10.3)
103,825
7.1

Operating income
Millions%of yen
6,834
(5.6)
7,237
0.3

Net income per share
Fiscal year ended March 31, 2009
Fiscal year ended March 31, 2008

Yen
(40.28)0.88

Ordinary income
Millions%of yen3,448(31.4)
5,025(3.8)

Net income
Millions%of yen(19,157)⎯417(82.3)Net income per share after
full dilution
Yen⎯⎯(2) Non-consolidated financial situation
Total assets
Net assets
Capital adequacy ratio Net assets per share
Millions of yen
Millions of yen%
Yen
Fiscal year ended March 31, 2009
237,682
18,7997.9
39.53
Fiscal year ended March 31, 2008
257,038
39,287
15.3
82.61(Reference) Shareholders’ equity: Fiscal year ended March 31, 2009: 18,799 million yen
Fiscal year ended March 31, 2008: 39,287 million yen* Explanation on appropriate use of forecasts of performance and other special items
The forward-looking statements in this document concerning forecasting of performance and etc. are basedon 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 assumptions used
as a basis for forecast of performance and important matters when using the forecast of performance, pleaserefer to 1. Business results (1) Analysis of business results Forecast of business performance for fiscal year
ending March 31, 2010 on page 5.

-2-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2009

1. Business results(1) Analysis of Business results(i) Business results for fiscal year ended March 31, 2009
In the current fiscal year, on the back of the global economic contraction triggered by the U.S. financial
turmoil in the second half of the period, demand for automobiles, electronics appliances andconstruction, etc. evaporated in Japan, although crude oil and raw material prices headed for decline.
The business environment surrounding the Japanese economy, such as capital expenditures, consumer
spending, corporate earnings and the employment situation, has been severely affected, to an extent notseen before.
Under these conditions, the Company saw its earnings drastically decrease, mainly in fibers & textiles
and environmental divisions, in the current fiscal year—the final year of New Progress (NP)-8, theUnitika Group’s medium-term (three-year) plan. This was due to negative effects on profitability fromsoaring raw material and fuel prices in the first half of the period and a sharp decline in sales quantity
caused by the global economic downturn in the second half of the period. Consequently, the Company
posted dismal results for the current fiscal year. The sales and income fell short of those in the previous
fiscal year: net sales of 209,584 million yen (25,159 million yen decrease over the previous fiscal year),
operating income of 7,766 million yen (3,787 million yen decrease over the previous fiscal year) andordinary income of 3,337 million yen (4,675 million yen decrease over the previous fiscal year). The
Company recorded net loss of 13,983 million yen (net income of 1,550 million yen in the previous
fiscal year), since it posted an extraordinary loss of around 10,000 million yen associated with
implementation of a structural reform program.
Under these circumstances, management regrets to report that it has been decided to cancel the dividend
payment for the current fiscal year. The Company would appreciate your understanding.
Here is a summary of business by segment.
[Polymers]
In the film business, earnings improved in the first half of the period thanks to progress in acceptance ofthe price revision in the package field, but shipment of nylon and polyester film decreased in the second
half of the period due to inventory adjustments and sluggish demand. In the industrial field, sales
remained steady in the first half of the period, but sales for the automobile, electronics and electronic
component industries decreased substantially in the second half of the period. As a result, in the film
business, sales decreased but profitability improved, thanks to cost reduction efforts including material
procurements.
In the resin business, shipment of nylon and U-Polymer, the Company’s original polylactide resin,stagnated due to a substantial decline in demand from the automobile, electronics and electronic
component fields, their major uses. Shipment of polyester resin remained the same as the previous fiscal
year, thanks to expansion of demand in medical and sheet uses, despite a decline in shipment for theelectronics and electronic component fields. As a result, in the resin business, sales and income
decreased slightly.
In the nonwoven fabrics business, sales of spunbond for the carpet and interior material fields andexport markets decreased, due to a sharp decline in demand from the automobile use and weak overseas
demand. Shipment of cotton-spun lace for sanitary material and cosmetic sundry goods uses remained
steady, but shipment for the industrial wiper use decreased. The cotton-spun lace business suffered fromrising cotton prices. As a result, in the nonwoven fabrics business, sales and income decreased.
Shipment of Terramac, a nonwoven biomass plastic, increased for electronics, electronic components
and sundry uses, thanks to continuous efforts to promote the use of biomass plastic in four fields: film,
resin, nonwoven and textile. Sales volume slightly increased amid the global economic slowdown.
Consequently, the Polymers division posted sales of 68,534 million yen (2,385 million yen decreaseover the previous fiscal year) and operating income of 8,249 million yen (1,170 million yen increaseover the previous fiscal year).
-3-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2009

[Environmental Business/Advanced Materials]
The environmental business, as a whole, fell into a difficult situation, with orders remaining weak in the
public work market, demand for strict construction supervision becoming stronger, price competition
intensifying and private sector decreasing capital expenditures in environmental facilities. Sales in themaintenance and water treatment agents fields remained almost the same as the previous fiscal year, but
sales in the incinerator field decreased due to the shrinkage of operations by focusing on profitableprojects, while sales in the water treatment field also declined due to flagging demand. The Company
strived to improve cost competitiveness by downsizing the organization, but income fell drastically. As
a result, in the environmental business, sales and income decreased.
In the advanced materials business, sales of glass fibers for construction, automobiles and bug filter uses
decreased. Earnings of the IC cloth business deteriorated due to a sharp decline in sales for theelectronic component industry. Meanwhile, shipment of glass beads for reflective materials use
remained sluggish due to weak demand and the appreciation of the yen, but the shipment for industrial
use grew. Shipment of activated carbon fibers increased steadily for home water purifier anddeodorization filter uses. As a result, in the advance material business, sales and income decreased.
Consequently, the Environmental Business/Advanced Materials division posted net sales of 30,408
million yen (4,787 million yen decrease over the previous fiscal year) and operating income of 1,859
million yen (1,359 million yen decrease over the previous fiscal year).
[Fibers and Textiles]
In the synthetic fiber business, with demand weakening due to the global economic slowdown,
shipment declined for various industrial material uses, whose demand had been relatively firm,
including construction, engineering works and automobile in addition to clothing use. Demand fornylon fibers and long staple and short-fiber polyester also remained very weak. In the vinylon fiber
business, sales of vinylon fiber for reinforced concrete use, which replaces asbestos, remained strong
and the expanded facilities ran at full capacity. With sales of civil engineering and building construction
material falling sharply and depreciation costs related to the expanded facilities increasing, income
declined in the synthetic fiber business.
In the natural fiber business, business in all fields contracted. Shipment of working apparel, which isstored for replenishment, declined substantially, with demand for uniforms from corporate customers
decreasing and their prices dropping due to slowing economy. The general clothing market wasdepressed and shipment for bed and bedding uses remained sluggish.
Consequently, Fibers and Textiles division posted net sale of 90,595 million yen (13,981 million yen
decrease over the previous fiscal year) and operating loss of 217 million yen (operating income of 1,710
million yen in the previous fiscal year).
[Health & Amenity, Others]
In the health & amenity business, sales of Hanabiratake (cauliflower fungus) health supplement andother supplements decreased amid stagnation in the health food market. In the segment as a whole, sales
slightly declined but profitability improved due to solid shipment of functional dietary materials such as
Ceramide and Arabinose, which large users continued to adopt for their main products. In the medical
business, shipment of clinical diagnostic reagents increased. Meanwhile, sales of anti-thrombogenic
catheters, one of the Company’s main products, grew steadily thanks to efforts for strengthening
circulatory system-related products, but their profitability deteriorated due to the revision inpharmaceutical prices for medical materials. Export of enzymes was sluggish. As a result, in medical
business, sales remained almost the same as the previous fiscal year, but income decreased. In otherbusiness, earnings decreased from the real estate business including sales of condominiums.
Consequently, the Health & Amenity, Others division posted net sales of 20,046 million yen (4,004
million yen decrease over the previous fiscal year) and operating income of 1,332 million yen (1,530
million yen decrease over the previous fiscal year).

-4-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2009(ii) Forecast of business performance for fiscal year ending March 31, 2010
In the fiscal year ending March 31, 2010, with business being expected to continue to suffer from theglobal recession for a while, Unitika will implement a structural reform program stated in Reform 2011,its medium-term management plan step by step. Under this program, the Company will wrestle with the
reduction of fixed costs and recovery of earnings of divisions subject to business structure improvement
and promote the improvement of earnings of divisions subject to competitiveness buildup, such as thepolymers and functional material businesses. Management will also strive to ensure financial strength
further. The Company forecasts net sales of 182,000 million yen, operating income of 8,500 million yen,ordinary income of 4,000 million yen and net income of 3,500 million yen for fiscal year ending March
31, 2010.
(2) Analysis on financial situation
Total assets decreased by 26,199 million yen from the end of the previous fiscal year to 282,843 million
yen. This is mainly due to decrease in notes and accounts receivable-trade and property, plant andequipment. Liabilities decreased by 7,567 million yen from the end of the previous fiscal year to 263,097
million yen. This is mainly due to decrease in notes and accounts payable-trade. Net assets decreased by
18,632 million yen from the end of the previous fiscal year to 19,746 million yen. This is mainly due todecrease in retained earnings caused by the posting of net loss.
Here is a summary of the cash flows situation.
(Net cash provided by [used in] operating activities)
Net cash provided by operating activities amounted to 4,977 million yen due to an increase indepreciation and provision for business structure improvement and a decrease in notes and accounts
payable-trade during the current fiscal year, despite the posting of net loss before income taxes.
(Net cash provided by [used in] investment activities)
Net cash used in investment activities amounted to 7,419 million yen due to capital expenditures of 8,224
million yen during the current fiscal year.
(Net cash provided by [used in] financing activities)
Net cash used in financing activities amounted to 505 million yen due to payment of dividends, etc.
during the current fiscal year.
As a result, cash and cash equivalents at the end of the current fiscal year decreased by 3,934 million yen
from the end of the previous fiscal year to 9,275 million yen.
The table below shows trends in cash flow indicators.
Year ended
March 31, 2009(i) Shareholders’ equity ratio (%)(ii) Shareholders’ equity ratio on
market value basis (%)(iii) Ratio of interest-bearing
liabilities to cash flow(iv) Interest coverage ratio

Year ended
March 31, 2008

Year ended
March 31, 2007

5.7

10.9

10.8

11.3

15.1

23.8

39.8

24.4

17.1

1.3

2.0

3.1

(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.

-5-Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2009(3) Basic policy for profit distribution and dividends for the fiscal year ended March 31, 2009 and the fiscal
year ending March 31, 2010
The Unitika Group considers that the profit distribution to its shareholders is an important aspect of its
business, but management intends to cancel dividend payment for the fiscal year ended March 31, 2009,
with consideration on 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 that is
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 for shareholders from a long-term perspective.
(4) Critical events, etc. regarding assumption of a going concern
In the current consolidated fiscal year, the Unitika Group posted net loss of 13,983 million yen. As aresult, its net assets decreased to 19,746 million yen and the Company now violates a restrictive financial
covenant regarding the long-term loans of around 20,000 million yen. However, management does notconsider that there will be critical uncertainties regarding assumption of a going concern, since theCompany will implement the following measures in accordance with Reform 2011, its new medium-term
management plan, which was approved by a meeting of the board of directors held on March 19, 2009.
z In order to bring about radical change in earnings, the Company will promote a structural reform,
which consists of measures for improving business structure of money-losing and unprofitablebusinesses and reducing fixed costs.
z Management will concentrate the Company’s resources on the growth areas and promote the growthstrategy to improve and strengthen its business by placing functional material such as polymers andfunctional materials as a core business.
The Company aims to post ordinary income of around 10,000 million yen at the final year of themedium-term plan by implementing the above measures.
Meanwhile, regarding the above restrictive financial covenant, as results of each financial institution’s
decision, an agreement is established to refrain from exercising the right of claim to accelerate the loan
maturity on the basis of the end of the current consolidated fiscal year.
2. Situation of Corporate GroupThe disclosure is omitted, since there are no significant changes from Business chart (contents of business)and Situation of affiliated companies stated in the most recent Securities Report (submitted on June 27,2008).
3. Management Policies(1) Basic management policies
Having the corporate mission of connecting daily life with technologies, the Unitika Group has been
aiming to become a company that contributes to improvement of people’s lives and preservation ofenvironment, with social recognition. Management believes that the contribution to the society will
enhance its corporate value, which in turn will reward shareholders, while the Company promotes its
basic management policies: implementation of structural reform, establishment of a foundation as afunctional materials manufacturer and strengthening of its corporate structure and shareholders’ equity.
(2) Targeted management index
The Unitika Group places greater importance on amount of sales, operating income and ordinary incomethat represent the results of its business activities. The Group considers enhancing its shareholders’equity ratio and reducing interest-bearing debts to strengthen its financial position and places emphasison and manages cash flows with great care.

-6-Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2009(3) Medium- to long-term business strategies and issues to be addressed
The Unitika Group will draw up Reform 2011, its new medium-term (three-year) management plan,
which starts from fiscal year 2009, in consideration of dismal business results for the fiscal year ended
March 31, 2009. Under the plan, the Group will promote a structural reform, which consists of measures
for improving business structure of money-losing and unprofitable businesses and reducing fixed costs inorder to bring about radical change in profitability. Management will implement these measures step bystep to provide a profitable basis for the Company as soon as possible. Unitika will concentrate theCompany’s resources on the growth areas and promote its growth strategy for improvement of its
business by placing functional material such as polymers and functional materials as a core business.
Management aims to post ordinary income of around 10,000 million yen at the final year of the mediumterm plan.
Here is a summary of business strategies and issues to be addressed for each business.
Polymers: In the film business, the Company will take regional strategies to expand the sales of Emblem,
nylon film, globally, and strengthen development and sales of high-barrier films to boost the business. In
the resins business, Management will expand the sales of U-Polymer by seeking new sales opportunities
in existing fields and developing new applications. Further, the Group will focus on expansion of uses ofnano-composite nylon resin in automobiles and its upgraded version in portable information terminals
and also try to increase sales of copolymerized polyester resin in the electrical and electronic fields. In
the nonwoven fabrics business, the Company will strengthen the sales of Eleves, a bi-component
composite supunbonded nonwoven fabric, and expand sales of spunbond for sanitary and carpet uses incooperation with its subsidiary in Thailand. Management will try to increase sales of spunlace fabrics for
sanitary and cosmetic uses in overseas markets. In addition, the Company will enhance durability andincombustibility of TERRAMAC, biomass plastic, to boost the sales of its improved resins and seek new
business opportunities for civil engineering and sanitary uses in the unwoven fabric field.
Environmental Business and Advanced Materials: In the environmental business, the Company will
review operation system of its incinerator business and concentrate on repair, reconstruction andmaintenance of the existing incinerators. In the water treatment business, management will focus on thefiber filter and granulation dephosphorizing fields by placing water supply, sewage and leachate
treatment facilities at the center of the operation. In addition, the Company will seek new business
opportunities for water treatment agents to stabilize earnings. In the advanced materials business,management will strengthen product development and increase overseas sales of glass fibers and highadded-value IC cloth for industrial uses in domestic and overseas markets. At the same time, theCompany will expand the market share of its high grade glass beads in the domestic and overseas market
and increase sales of activated carbon fibers used in various types of filters.
Fibers and Textiles: In the fibers and textiles business, management will implement the business structure
improvement measures step by step to restructure the businesses. With implementation of the measures,
the Company will accelerate the shift to high-performance materials, and strengthen industrial textile
products such as short-fiber polyester and of vinylon fiber for reinforced concrete use. Meanwhile
management will examine restructure of the Group’s businesses and organizations in the clothing textile
field.
Healthcare & Amenity and Others: In the healthcare & amenity business, the Company will promote thesales of dietary ingredients and livestock feeds in overseas as well as functional dietary materials such as
Ceramide. In the medical business, management will strengthen sales of anti-thrombotic catheters for thecirculatory system by marketing new products and focus on developing new uses of enzymes and clinicaldiagnostic reagents.
Regarding overseas business development, the Company will extend its operations of the resin,
nonwoven fabric and advanced material businesses throughout the Asian region and strengthen businessin the European market in addition to a global expansion of nylon film sales.
Management will steadily implement measures for reducing fixed costs as a part of the structural reformand cut back variable costs thoroughly. The Company will also efficiently manage funds to reduce
interest-bearing debts.
-7-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2009

4. Consolidated financial statements(1) Consolidated balance sheets(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2008)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories

13,04550,03962,222Current consolidated
fiscal year
(March 31, 2009)

9,331
36,981

Merchandise and finished goods⎯⎯
38,592Work in process⎯

18,306

⎯
1,449
7,087
(65)
133,779

4,427

Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures (net)
Machinery, equipment and vehicles (net)
Tools, furniture and fixtures (net)Land
Lease assets (net)25,161
27,600
1,332
107,382⎯
2,535
164,012Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Investments in capital
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

-8-

1,667
5,906
(142)
115,070

23,78025,625
1,445
104,683892
1,909
158,337

554
944
1,498

177
682
859

7,053
35
528
431
2,531
(826)
9,753
175,264
309,043

5,805
30
780
564
2,974
(1,579)8,576
167,773282,843

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2009

(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2008)

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds
Lease obligations
Income taxes payable
Provision for bonuses
Provision for warranties for completed construction
Provision for business structure improvement
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for land revaluation
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-9-38,38572,27356,489400

Current consolidated
fiscal year
(March 31, 2009)⎯15,29026,52080,811
32,714
400
293
592
712
53
3,675
12,596

186,172

158,370

800
62,823⎯
11,278
2,851
3,483
408
2,847

400
80,418630
12,735
2,796
4,742
342
2,661

84,492

104,727

270,665

263,097

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

23,798
1,661(7,783)(46)

32,612

17,629

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

(498)
12
2,875
(3,909)998(1,520)

4,767

3,636

38,37819,746

309,043

282,843

⎯
952
2,265
116

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2009

(2) Consolidated statements of income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Rent income
Gain on contribution of securities toretirement benefit trust
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
Gain on sales of subsidiaries andaffiliates’ stocks
Total extraordinary income
Extraordinary losses
Loss on disposal of noncurrent assets
Loss on valuation of inventories
Loss on disposal of inventories
Business structure improvement expenses
Other
Total extraordinary loss
Income (Loss) before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Minority interests in income (loss)
Net income (loss)

Previous consolidated
fiscal year
(April 1, 2007 to
March 31, 2008)
234,744
191,942
42,801
31,247
11,553(Unit: Millions of yen)
Current consolidated
fiscal year
(April 1, 2008 to
March 31, 2009)
209,584
171,355
38,22830,462
7,766

246
136
133

270
123
129

498
562
1,604
3,182

⎯
176
1,734
2,434

4,082
1,266
1,373
6,723
8,013

3,880
1,242
1,740
6,863
3,337

825

33

512
1,338

⎯
33

926
2,419
743
913
1,559
6,562
2,788
1,064
182
1,247
(9)
1,550

645
⎯
⎯
12,2942,355
15,295(11,924)
752
1,283
2,036
23
(13,983)- 10 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2009

(3) Consolidated Statements of Changes in Net Assets
Previous consolidated
fiscal year
(April 1, 2007 to
March 31, 2008)(Unit: Millions of yen)
Current consolidated
fiscal year
(April 1, 2008 to
March 31, 2009)

23,79823,79823,79823,798

1,661
1,661

1,661
1,661

6,660

7,196

⎯

(83)

(951)
1,550
(63)

(951)
(13,983)
38

Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the end of previous period
Changes of items during the period
Purchase of treasury stock

⎯
536
7,196

(0)
(14,897)(7,783)

(37)

(43)

(6)

(5)

Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Total shareholders’ equity
Balance at the end of previous period
Effect of changes in accounting policies applied toforeign subsidiaries
Changes of items during the period
Dividends from surplus
Net income (loss)
Reversal of revaluation reserve for land
Purchase of treasury stock

⎯
(6)
(43)

2
(2)
(46)

32,082

32,612

⎯

(83)

(951)
1,550
(63)
(6)

(951)
(13,983)
38
(5)

⎯
530
32,612

1(14,899)
17,629

Shareholders’ equity
Capital stock
Balance at the end of previous period
Balance at the end of current period
Capital surplus
Balance at the end of previous period
Balance at the end of current period
Retained earnings
Balance at the end of previous period
Effect of changes in accounting policies applied toforeign subsidiaries
Changes of items during the period
Dividends from surplus
Net income (loss)
Reversal of revaluation reserve for land

Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period- 11 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2009
(Unit: Millions of yen)
Current consolidated
fiscal year
(April 1, 2008 to
March 31, 2009)

Previous consolidated
fiscal year
(April 1, 2007 to
March 31, 2008)
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Deferred gains or losses on hedges
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Revaluation reserve for land
Balance at the end of previous period
Changes of items during the period
Reversal of revaluation reserve for land
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Foreign currency translation adjustment
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Total valuation and translation adjustments
Balance at the end of previous period
Changes of items during the period
Reversal of revaluation reserve for land
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Minority interests
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the end of previous period
Effect of changes in accounting policies applied to foreignsubsidiaries
Changes of items during the period
Dividends from surplus
Net income (loss)
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period- 12 -

1,039

(120)

(1,160)(1,160)
(120)

(378)
(378)
(498)

2

(11)

(13)
(13)
(11)

23
23
12

3,444

3,484

63
(22)
40
3,484

(38)
(569)
(608)
2,875

(1,258)(2,354)(1,096)(1,096)(2,354)(1,555)(1,555)(3,909)

3,227

998

63
(2,292)(2,229)998(38)(2,479)(2,518)(1,520)

4,649

4,767

118
118
4,767

(1,130)(1,130)3,636

39,95938,378

⎯

(83)

(951)
1,550
(6)
⎯
(2,174)(1,580)38,378(951)(13,983)(5)
1(3,610)(18,548)
19,746

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2009

(4) Consolidated statements of cash flow
Previous consolidated
fiscal year
(April 1, 2007 to
March 31, 2008)
Net cash provided by (used in) operating activities
Income (Loss) before income tax
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for business structure
improvement
Increase (decrease) in other provisionInterest expenses
Loss (gain) on disposal of noncurrent assets
Loss (gain) on sales of noncurrent assets
Loss (gain) on sales of stocks of subsidiaries and affiliates
Loss on valuation of inventories
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 the end of the current fiscal year(5) Notes regarding assumption of a going concern
Not applicable- 13 -

2,788
6,704
463
(659)
⎯
(143)
4,082
926
(825)
(512)
2,419

(Unit: Millions of yen)
Current consolidated
fiscal year
(April 1, 2008 to
March 31, 2009)(11,924)
7,513
900
1,279
3,675
(1,679)
3,880
645
(33)

64
1,221
(3,765)238
13,005409(4,071)(1,213)8,129⎯⎯
12,762451(11,603)
3,654
9,521
403
(3,887)(1,059)
4,977

176
(200)
1,856
(7,538)
1,068(862)(5,500)

779
(25)
118
(8,224)287(355)(7,419)5,771
31,995(41,539)
(400)
(940)

7,012
50,897(56,640)
(400)
(940)
(435)

⎯
(5,113)215(2,270)15,47913,209(505)(986)(3,934)
13,2099,275

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2009(6) Significant items that are the basis for preparation of consolidated financial statements
1. Scope of consolidation
There are 53 consolidated subsidiaries and 7 non-consolidated subsidiaries as of the end of the current
period under review. Major consolidated subsidiaries are Unitika Fibers Co., Ltd., Nippon Ester Co.,
Ltd., Unitika Textiles Co., Ltd., etc. Total assets, net sales, net income/loss (corresponding to equity
interest) and retained earnings (corresponding to equity interest) of 7 non-consolidated subsidiaries(Akoh Unitec Service Co., Ltd., Unitika Uji Kosan Co., Ltd., etc.) are small in value and do not have asignificant influence on the consolidated financial statements. Changes in consolidated subsidiaries
consisted of an increase of 1 company by additional acquisition of its stocks.
2. Application of the equity method
The equity method is applied to 7 non-consolidated subsidiaries and 2 affiliated companies (Ador Co.,
Ltd. etc.). Changes in affiliated companies include a decrease of 1 company by becoming a consolidated
subsidiary by additional acquisition of its stocks, and a decrease of 1 company by liquidation.
3. Account settlement date, etc. of consolidated subsidiaries
Among consolidated subsidiaries, Thai Nylon Co., Ltd., Unitika America Corp., Unitika (Shanghai) Ltd.,
Emblem Asia Co., Ltd., Unitika Emblem China Ltd., Unitika Do Brasil LLC, Brascot LLC, Peking
Unitika Garments LLC, Unitex Co., Ltd. and TUSCO Co., Ltd. settle their accounts on December 31,
and Unitika Hong Kong Ltd. settles its accounts on February 28. For the purpose of preparing theconsolidated financial statements, the financial statements on respective dates are used, and a necessary
adjustment is made with regard to significant transactions conducted during the period between theabove-mentioned settlement date and the current consolidation date.
4. Accounting standards(1) Evaluation standards and method for significant assets
Marketable securities
Other marketable securities
With market values:
Valued at fair value based on market values, etc. on the settlement date(variance from valuation is processed with the method entirely tocharge or credit directly to equity, and selling cost is calculated using
the moving average method.)
Without market values: Valued at cost using the moving average method
Derivatives
Valued at fair value
Inventories
Valued primarily at cost by using the moving average method (the balance sheet value iscalculated by the book value written-down method based on decline in profitability.)(2) Depreciation method for significant depreciable assets
Tangible fixed assets (excluding lease assets)
The Company and its consolidated subsidiaries primarily use the declining-balancemethod. However, some consolidated subsidiaries use the straight-line method.
Intangible fixed assets (excluding lease assets)
Straight-line method
Lease assets
Lease assets under finance lease transactions that do not transfer ownership
Lease assets are depreciated using the straight-line method over the lease term, based on theassumption that the residual value is equal to zero.

- 14 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2009

(Additional information)
In the revision of ministerial ordinances on useful life, the company and some of its consolidated
subsidiaries reviewed use of their assets and shortened useful life of some machines and equipmentfrom 10 years to 7 years in the fiscal year ended March 31, 2009. There was only a minor impact on
operating income, ordinary income, and net loss before income taxes for the current fiscal year
from the revision.
(3) Accounting standards for important allowances
Allowance for doubtful receivables
In order to cover losses from uncollectible account receivables, the Company provides for
estimated uncollectible amount of normal receivables based on historical loss ratios. Specificclaims including doubtful receivables, etc. are individually evaluated for the likelihood ofrecovery and estimated uncollectible amount is provided.
Provision for bonuses
The Company provides for allowance for bonus based on the estimated amount of the payment
for employees.
Reserve for compensation for completed works
The amount calculated by multiplying the construction revenue by historical repair ratios isprovided to appropriate it for free repairs under the liability of security for completed works.
Some consolidated subsidiaries record the reserve for compensation for completed works as an
expense when paid out.
Provision for business structure improvement
The Company provides for reasonably estimated amount of loss incurred in the next
consolidated fiscal year due to implementation of a business structure improvement program.
(Additional information)
The Unitika Group plans to implement a business structure improvement program before drawing
up a new medium-term management plan. The business structure improvement program consists ofmeasures for improving business structure in loss-making or unprofitable businesses and reducing
fixed costs. With the implementation of the program, the Company records a provision for businessstructure improvement of 3,675 million yen.
Allowance for retirement benefits
To cover payment of retirement benefits to employees, the Company provides for retirement
benefits based on the estimated amount of the retirement benefit obligation and the trust estate
related to retirement benefit obligation (regarding some consolidated subsidiaries, the retirement
benefit obligation and pension assets) at the end of the fiscal year ended March 31, 2009.
The transition difference due to a change in the accounting standards is equally expensed over 15
years.
The past service liabilities are amortized using the straight-line method over the average remaining
years of service of employees (generally 9 years) when the liability is incurred.
Actuarial gains and losses are expensed using the straight-line method over the average remaining
years of service of employees (generally 10 years), allocated starting from the year each respective
gain or loss is incurred.
(Additional information)
The Company revised its employees’ severance payment plan on of April 1, 2008, shifting part of
future payment of pension benefits to the defined contribution plan from the defined benefit plan.
With this revision, past service liabilities (reduction of liabilities) of 652 million yen were incurred.
Allowance for directors’ retirement bonuses
In the past, the Company and its consolidated subsidiaries provided for the amount payable atthe end of the subject term under the internal rule to cover payment of retirement bonuses todirectors (including executive officers). However, the Company and its consolidated
subsidiaries abolished the directors’ retirement bonus system in June 2006 and suspended thetransfer of such amount to allowance for directors’ retirement bonuses.
- 15 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2009(4) Standards for translating important foreign currency assets or liabilities to Japanese currency
Foreign currency monetary assets and liabilities are converted into yen currency at the spot exchange
rate of the consolidated settlement date and exchange differences are treated as profit or loss.
Meanwhile, the assets and liabilities of overseas subsidiaries are converted into yen currency by the
spot exchange rate of the settlement date, and profits and expenses are converted into yen currency at
the average market rate during the period with the exchange differences included in the currency
exchange translation adjustment and minority interests.
(5) Interest relating to property for sale (inventories)
Interests paid in relation to some real estate for sale in progress among the real estate for sale held bysome consolidated subsidiaries are included in the acquisition amount of such real estate.
(6) Important hedge accounting method
The Company adopts deferred hedge accounting, and uses the method for translating foreign
currency receivables and payables on the basis of yen value cash flow fixed by forward contract for
exchange contracts that may satisfy requirements for the said method, and preferential procedures forinterest rate swaps that may satisfy requirements for preferential procedures.
(7) Treatment of consumption taxes, etc.
The Company adopts the tax-excluding method.
5. Items relating to evaluation of assets and liabilities of consolidated subsidiaries
The Company adopts the full fair value method for the evaluation of assets and liabilities of consolidated
subsidiaries.
6. Items relating to amortization of goodwill
Goodwill is amortized using the straight-line method over 5 years.
7. Scope of funds in consolidated statements of cash flows
Funds (cash and cash equivalents) stated in the consolidated statements of cash flows consist of cash on
hand, demand deposits and short-term investments that are readily convertible into cash, are exposed toinsignificant risk of changes in value and are redeemable in 3 months or less from each acquisition date.
(7) Changes in basic important matters for preparation of consolidated financial statements(Change of accounting policies)(i) The Company has adopted the Practical Solution on Unification of Accounting Policies Applied toForeign Subsidiaries for Consolidated Financial Statements (ASBJ Practical Issues Task Force No. 18,
issued on May 17, 2006) effective from the current consolidated fiscal year and made necessary
adjustments for consolidation. Total assets and net assets at the end of the fiscal year decreased by 394
million yen and 454 million yen, respectively, compared to those obtained by the previous method, but
the change has no significant impact on operating income, ordinary income and net loss before income
tax.
(ii) Previously, Unitika had used the accounting treatment of ordinary rental transactions for finance leasetransactions that do not transfer ownership. However, effective from the current consolidated fiscal year,
the Company has adopted the Accounting Standard for Lease Transactions (ASBJ Statement No. 13;
June 17, 1993 [Business Accounting Council, First Committee], revised March 30, 2007) and the
Guidance on Accounting Standard for Lease Transactions (ASBJ Guidance No. 16; January 18, 1994
[Japanese Institute of Certified Public Accountants, Committee of Accounting Systems], revised March
30, 2007). Following this change, Unitika uses the accounting treatment of ordinary sales transactions.
Lease assets related to finance lease transactions that do not transfer ownership are depreciated using
the straight-line method over the lease term, based on the assumption that the residual value is equal tozero.
- 16 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2009

The change has no impact on operating income, ordinary income and net loss before income tax for thecurrent consolidated fiscal year.
(Change of presentation method)
Consolidated Balance Sheets
In accordance with enforcement of the Cabinet Office Ordinance Partially Revising Regulation for
Terminology, Forms and Preparation of Financial Statements (Cabinet Office Ordinance No. 50 ofAugust 7, 2008), items that were stated as inventories in the previous consolidated financial statements
are separately classified into merchandise and finished goods, work in process and raw materials andsupplies. Accordingly, inventories stated in the previous consolidated fiscal year were restated asfollows: merchandise and finished goods of 39,171 million yen, work in process of 18,167 million yen
and raw materials and supplies of 4,883 million yen.
Consolidated Statements of Income
The Loss on disposal of inventories (124 million yen for the current consolidated fiscal year) was statedseparately up until the previous consolidated fiscal year. However, since it became less than 10/100 of
the extraordinary loss, it is included and indicated in the Other of the extraordinary loss.
(8) Notes on consolidated financial statements
a. Segment information by business
The previous consolidated fiscal year (April 1, 2007 to March 31, 2008)

I Net sales andoperating income(loss)Net sales(1) Net sales to outside
customers(2) Inter-segment sales
or transfers
Total(Unit: Millions of yen)

Polymers

Environmental
Business/
Advanced
Materials

70,91935,195

104,577

24,051

234,744

3,960

586

673

3,512

8,732

Fibers &TextilesHealth &Amenity,
OthersTotal

Eliminationor corporate⎯[8,732]

Consolidated
total

234,744⎯

74,88035,781

105,250

27,564

243,477[8,732]

234,744

Operating expenses

67,80232,562

103,540

24,701

228,607[5,416]

223,190

Operating income

7,078

3,218

1,710

2,862

14,870[3,316]

11,553

II Assets, depreciation
and amortizationand capital
expenditures
Assets80,70931,727
106,30278,363
297,102
11,940309,043
Depreciation andamortization
3,276
682
1,466
804
6,230
474
6,704
Capital expenditures
1,950
2,039
1,545
979
6,515
831
7,346
(Note) 1. Among operating expenses, unallocatable operating expenses that are included in elimination or corporate amounted to3,454 million yen.
2. Among the Assets, the total company assets that are included in elimination or corporate amounted to 29,005 million yen.
The main items are investment of surplus funds (cash and deposits), long-term investment funds (investment securities)
and assets, etc. related to the Administration and the Research and Development Division of the parent company.
Revaluation reserve for business land of the parent company is not included in the respective business segments.

- 17 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2009

Current consolidated fiscal year (April 1, 2008 to March 31, 2009)

I Net sales andoperating income(loss)Net sales(1) Net sales to outside
customers(2) Inter-segment sales
or transfers(Unit: Millions of yen)

Polymers

Environmental
Business/
Advanced
Materials

68,53430,40890,59520,046

209,584

3,326

141

479

3,747

7,695

Fibers &TextilesHealth &Amenity,
OthersTotal

Eliminationor corporate

Consolidated
total

⎯

209,584[7,695]71,86030,54991,07423,794217,279[7,695]⎯⎯
209,584

Operating expenses

63,611

28,69091,291

22,462206,055[4,237]

201,817

Operating income oroperating loss

8,249

1,859

(217)

1,332

11,224[3,457]

7,766

Total

II Assets, depreciation
and amortizationand capital
expenditures
Assets77,216
26,256
97,506
66,342
267,322
15,521
282,843
Depreciation andamortization
3,180
1,066
1,719
914
6,881
631
7,513
Capital expenditures
1,870
1,477
3,074
724
7,146
1,135
8,281
(Note) 1. Among operating expenses, unallocatable operating expenses that are included in elimination or corporate amounted to
3,593 million yen.
2. Among the Assets, the total company assets that are included in elimination or corporate amounted to 26,601 million yen.
The main items are investment of surplus funds (cash and deposits), long-term investment funds (investment securities)
and assets, etc. related to the Administration and the Research and Development Division of the parent company.
Revaluation reserve for business land of the parent company is not included in the respective business segments.

b. Segment information by geographic area
The previous consolidated fiscal year (April 1, 2007 to March 31, 2008) and the current consolidated
fiscal year (April 1, 2008 to March 31, 2009)
Segment information by geographic area is omitted because sales and assets in Japan accounted formore than 90% of total sales (including inter-segment sales) and total assets of all geographic segments.
c. Overseas sales
The previous consolidated fiscal year (April 1, 2007 to March 31, 2008)
34,884I. Overseas sales (million yen)
234,744
II. Consolidated sales (million yen)
14.9
III. Ratio of overseas sales to consolidated sales (%)(Note) There were no segments whose sales (excluding inter-segment sales or transfers) exceeded 10% ofconsolidated sales.
The current consolidated fiscal year (April 1, 2008 to March 31, 2009)
29,017
I. Overseas sales (million yen)
209,584
II. Consolidated sales (million yen)
13.8
III. Ratio of overseas sales to consolidated sales (%)(Note) There were no segments whose sales (excluding inter-segment sales or transfers) exceeded 10% ofconsolidated sales.

- 18 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2009

Per Share Data
Previous consolidated fiscal year
(April 1, 2007 to March 31, 2008)

Current consolidated fiscal year
(April 1, 2008 to March 31, 2009)

Net assets per share

70.67 yen

Net assets per share

33.88 yen

Net income per share

3.26 yen

Net loss per share

29.41 yen

Information on net income per share after full
Information on net income per share after full
dilution is omitted, since there is no potential
dilution is omitted, since the Company posts net loss
common stock.
and there is no potential common stock.
(Note) The basis for the calculation of net income per share or net loss is as follows:
Previous consolidated fiscal year
Current consolidated fiscal year
(April 1, 2007 to March 31, 2008) (April 1, 2008 to March 31, 2009)
Net income (net loss) (million yen)
1,550
(13,983)
Net income not attributable to⎯⎯common stock (million yen)
Net income on common stocks
1,550(13,983)(million yen)
Average number of common stock
475,595
475,557(thousand shares)(Material subsequent events)
None(Omission of disclosure)
Disclosure of notes regarding lease transactions, transactions with related parties, tax effect accounting,marketable securities, derivative transactions, retirement benefits, stock options, etc. and a businesscombination is omitted, because the Company considered it less necessary to disclose such informationin the consolidated financial statements.

- 19 -