Member of Financial Accounting Standards Foundation

Financial Results for the 1st Quarter of the Fiscal Year Ending March 31, 2013
August 6, 2012
Listed stock exchanges: Tokyo Stock Exchange, Osaka Securities Exchange
Company name: Unitika Ltd.
Code number: 3103
URL: http://www.unitika.co.jp/e/home.htm
Representative: Kenji Yasue, President and Chief Executive Officer
Contact: Shoji Ishikawa, General Manager of Accounting Department
TEL: +81-6-6281-5721
Expected submission of quarterly report: August 10, 2012
Expected commencement date for paying dividend: –Preparation of supplementary explanation documents for quarterly financial results: No
Holding of an analyst meeting for quarterly financial results: No(Figures rounded to nearest million yen.)
1. Consolidated performance for 1st quarter of fiscal year ending March 31, 2013 (April 1, 2012 to June 30, 2012)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales

Q1 of FY ending March 31, 2013
Q1 of FY ended March 31, 2012

(Note) Comprehensive income

Operating income%(12.7)(0.3)

Millions of yen

38,88344,565

Millions of yen

1,454
3,040

Ordinary income%(52.2)
53.8%(73.7)
119.2

Millions of yen

559
2,124

Quarterly net income
Millions of yen

59
862

%
(93.1)


Q1 of FY ending March 31, 2013: 777 million yen [(26.8) %]Q1 of FY ended March 31, 2012: 1,062 million yen [675.6%]
Quarterly net income per share

Quarterly net income per share after full dilution
Yen

Yen
0.10
1.74

Q1 of FY ending March 31, 2013
Q1 of FY ended March 31, 2012


1.55

(2) Consolidated financial situation
Total assets
Q1 of FY ending March 31, 2013
FY ended March 31, 2012

(Reference) Shareholders’ equity

Net assets

Millions of yen
272,877
268,486

Capital adequacy ratio

Millions of yen
32,93632,207

%
10.8
10.6

1st quarter of fiscal year ending March 31, 2013: 29,438 million yen
Fiscal year ended March 31, 2012: 28,511 million yen

2. Dividend payment
Dividends per share
End of Q1

End of Q2Yen

FY ended March 31, 2012
FY ending March 31, 2013




FY ending March 31, 2013 (forecast)(Note) Revision of the latest dividend forecast: None

End of Q3
Yen
0.00
0.00

Year end
Yen

Annual



Yen
0.00

Yen
0.00



0.00

0.00

3. Forecast of consolidated performance for fiscal year ending March 31, 2013 (April 1, 2012 to March 31, 2013)(% figures represent changes from same period in previous year)
Net sales

Operating income

Millions of yen% Millions of yen%
6-month period ending September 30,
83,5003,500 (28.4)
2012 (accumulation)(4.1)
175,000
9,000
FY ending March 31, 2013
0.2
(6.1)
(Note) Revision of the latest forecasts of operational results: None

Ordinary income

Net income pershare

Net income

Millions of yen%

Millions of yen

%

Yen

2,000
6,000

(22.9)
4.3

300
2,000

(71.1)
54.1

0.52
3.47

Member of Financial Accounting Standards Foundation* Notes(1) Changes in significant subsidiaries during the period: No(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: No 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, 2013: 577,523,433 sharesFiscal year ended March 31, 2012: 572,960,324 shares Number of treasury stocks at end of term
1st quarter of the fiscal year ending March 31, 2013: 757,845 sharesFiscal year ended March 31, 2012: 570,138 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
1st quarter of the fiscal year ending March 31, 2013: 575,501,163 shares
1st quarter of the fiscal year ended March 31, 2012: 494,795,794 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 the forecast 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) Qualitative information on the forecast of
consolidated results on page 3 of the attachment).

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2013

 Table of contents for the attachment
1. Qualitative Information on Quarterly Results ....................................................................................... 2(1) Qualitative Information on Consolidated Results ............................................................................. 2(2) Qualitative information on financial positions .................................................................................. 3(3) Qualitative information on the forecast of consolidated results ......................................................... 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, 2012 ........................................................................................ 6
Consolidated quarterly statements of comprehensive income
Three-month period ended June 30, 2012 ........................................................................................ 7(3) Notes on going concern assumption ................................................................................................. 8(4) Notes on significant changes in shareholders’ equity ........................................................................ 8(5) Segment information ....................................................................................................................... 8(6) Business combinations ..................................................................................................................... 9-1 -Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2013

1. Qualitative Information on Quarterly Results(1) Qualitative Information on Consolidated Results
In the first quarter of the fiscal year ending March 31, 2013 (April 1, 2012 to June 30, 2012), theoutlook for the Japanese economy remained uncertain, because the impact of a subsidy program foreco-friendly cars on the domestic production and sales of automobiles was not large enough to turnthings around; the country faced an energy problem against a backdrop of concern over the stablesupply of electricity; the Japanese yen continued appreciating; the European sovereign debt crisis wasonce again on the rise; and there was a slowdown in economic growth in emerging countries including
China.
Amid such an environment, the Group reported net sales of 38,883 million yen (down 12.7%
year-on-year), operating income of 1,454 million yen (down 52.2% year-on-year), ordinary income of559 million yen (down 73.7% year-on-year), and net income of 59 million yen (down 93.1%
year-on-year). This was because demand in the Polymers business etc., which had dropped sincesummer 2011, was slow to recover, resulting in a decrease in earnings.
To further enhance the strategic unity and mobility of the Unitika Group, making the best use of theGroup’s management resources, the Company made Terabo Co., Ltd., a consolidated and listed
subsidiary, a wholly-owned subsidiary through a share exchange with an effective date of May 1, 2012.
Here is an overview of the business results by segment.
[Polymers]
In the Films business, earnings diminished in both the packaging and industrial sectors. This was
because shipments in the packaging sector decreased from the same period the year before, the time
when demand sharply increased just after the March 11th earthquake, though demand gradually
recovered from the adjustment that started from fall 2011; and in the industrial sector, demand from theelectric and electronics equipment sectors recovered more slowly compared to the packaging sector. In
the Resins business, shipments of nylon for the automobile sector, a major sector, were solid, but
shipments of polyester and polyarylate resin for the electric and electronics equipment and officeequipment sectors remained sluggish, centering on high-value-added products. That was why earnings
decreased. In the Non-Woven Fabric business, earnings fell because shipments of polyester spunbond
for general material applications were weak, though those for automobile carpet and civil engineering
applications were steady. In addition, shipments of cotton spunlace for wet sheet application remained
almost flat on a year-on-year basis.
Consequently, the Polymers business posted operating income of 1,712 million yen (down 40.6%
year-on-year) on net sales of 15,148 million yen (down 17.7% year-on-year).

[Advanced Materials]
In the Glass Fibers business, shipments for building and civil engineering refurbishment grew solidly in
the industrial material sector. However, profitability of IC cloth in the electronic material sector
continued deteriorating because of lingering weak market conditions, despite efforts to step up sales ofhigh-value-added products. In the Glass Beads business, shipments for some reflective materials
applications were steady, but those for road marking applications were sluggish because of bad weather
in some regions. In the Activated Carbon Fibers business, shipments for water purifiers including thosebuilt into faucets in Japan were strong, but those for waste water treatment applications overseas
including China were weak.
Consequently, the Advanced Materials business posted operating income of 204 million yen (down
43.1% year-on-year) on net sales of 3,489 million yen (down 11.5% year-on-year).
[Fibers and Textiles]
In the Industrial Materials business, demand for mainstay ultra-high-strength polyester filament yarn for
construction and civil engineering applications remained weak, while sales of short-fiber polyester
struggled because of price competition with imported products. The profitability of vinylon fiber did not
improve because of lingering weak market conditions in Europe, a main market, despite efforts to
expand sales for reinforced concrete applications in emerging countries by seeking new customers. In
the Garments, Lifestyle Materials, and Bedding business, shipments of uniforms for public and private
customers continued solid, while those of high-functional materials for sportswear and ladies’ fashion
clothing remained steady.
Consequently, the Fibers and Textiles business posted operating income of 90 million yen (down 80.0%
year-on-year) on net sales of 17,390 million yen (down 10.0% year-on-year).
-2 -Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2013

[Others]
In the Health & Amenity business, sales of health food and feeding stuffs were generally solid, while
those of functional dietary materials, both domestic and overseas, remained sluggish. In the Medical
business, sales of catheters for the treatment of circulatory system diseases struggled in the medical
product sector. Sales of clinical diagnostic reagents exceeded the budget, but those of enzymes wereweak in the biochemical sector, because orders from overseas customers tended to lag behind schedule.
In the Real Estate business, sales of condominiums were relatively firm.
Consequently, the Others category posted operating income of 148 million yen (operating loss of 55
million yen a year earlier) on net sales of 2,855 million yen (down 1.7% year-on-year).
(2) Qualitative information on financial positions
Total assets increased by 4,391 million yen from the end of the previous consolidated fiscal year to272,877 million yen. This was mainly due to an increase in the notes and accounts receivable-trade.
Liabilities grew by 3,662 million yen from the end of the previous consolidated fiscal year to 239,941
million yen. This was mainly due to an increase in loans payable. Net assets increased by 728 million
yen from the end of the previous consolidated fiscal year to 32,936 million yen, mainly as a result of anincrease in foreign currency translation adjustment.
(3) Qualitative information on the forecast of consolidated results
The Group did not revise its six-month and full-year forecasts of consolidated results announced on
May 15, 2012.
2. Matters concerning Summary Information (Notes)(1) Changes in significant subsidiaries during the period
Not applicable(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
Not applicable-3 -Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2013

3. Quarterly Financial Statements(1) Consolidated quarterly balance sheets(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2012)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Other
Allowance for doubtful accounts
Total current assets
Noncurrent 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 noncurrent assets
Total assets-4 -Q1 of FY ending March 2013
(June 30, 2012)

15,361
39,88447,7975,600(217)
108,425

17,81944,03347,2964,262(209)
113,203104,766
48,378153,145

104,374
48,731
153,105

21
751
773

20
784
805

6,657
(515)
6,141
160,060
268,486

6,284
(520)
5,763
159,674
272,877

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2013

(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2012)
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
Provision for loss on construction contracts
Provision for business structure improvement
Other
Total current liabilities
Noncurrent liabilities
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
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets-5 -Q1 of FY ending March 2013
(June 30, 2012)25,191
69,993
34,613
515
1,848
23
142
11,693144,022

21,572
68,04935,419
136
909
13
116
12,493
138,710

68,601
7,189
58
16,40592,255236,278

77,734
7,408
53
16,034
101,230
239,941

26,298
4,161
(646)
(55)
29,757

26,298
4,385
(586)
(43)
30,052

26

3

4
2,764
(4,041)(1,245)
3,696
32,207
268,486(12)
2,764(3,369)(614)
3,497
32,936
272,877

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2013

(2) Consolidated quarterly statements of income and consolidated quarterly statements of comprehensive
income(Consolidated quarterly statements of income)(Three-month period ended June 30, 2012)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on negative goodwill
Total extraordinary income
Extraordinary loss
Loss on disposal of noncurrent assets
Loss on valuation of investment securities
Other
Total extraordinary loss
Income before income taxes and minority
interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in income (loss)
Net income

Three-month period
ended June 30, 2011
(April 1, 2011 toJune 30, 2011)
44,56535,453
9,112
6,071
3,040

(Unit: Millions of yen)Three-month period
ended June 30, 2012
(April 1, 2012 toJune 30, 2012)
38,88331,599
7,283
5,829
1,454

46
61
329
436

27
51
233
312

823
39
489
1,352
2,124

750
41
415
1,207
559

16
—
16

—
48
48

137
7
862
1,007
1,133

84
137
128
349
258

69
185
255
877
15
862

92
119
211
46
(13)
59

-6 -

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2013

(Consolidated quarterly statements of comprehensive income)(Three-month period ended June 30, 2012)(Unit: Millions of yen)Three-month period ended June30, 2011(April 1, 2011 to June 30, 2011)

Three-month period ended June30, 2012(April 1, 2012 to June 30, 2012)

877

46

(21)
(37)
253
(10)

(23)
(19)
775
(2)

184
1,062

730
777

1,015

691

46

85

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Quarterly comprehensive income(Comprehensive income attributable to)
Quarterly comprehensive income attributable toowners of the parent
Quarterly comprehensive income attributable tominority interests-7 -Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2013

(3) Notes on going concern assumption
Not applicable(4) Notes on significant changes in shareholders’ equity
Not applicable(5) Segment information[Segment Information]
Three-month period ended June 30, 2011 (April 1, 2011 to June 30, 2011)
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

Adjustment(Note 2)

Figure in quarterly
consolidated
statements ofincome(Note 3)

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

18,3973

3,943
13

19,31945

41,661
62

2,903
399

44,565
461

—
(461)

44,565—

Total

18,401

3,957

19,36541,7233,303

45,027(461)

44,565

Segment income (loss)
2,884
359
452
3,697
(55)
3,641
(601)
3,040
(Notes) 1. Other includes the Environmental Business, Medical Business, Health & Amenity Business, and Real Estate-related
Business.
2. Adjustment of 601 million yen for Segment income (loss) includes corporate expenses that are not allocated to eachreportable segment.
3. Segment income (loss) is adjusted with operating income in quarterly consolidated statements of income.

Three-month period ended June 30, 2012 (April 1, 2012 to June 30, 2012)
1. Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment
Polymers

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

15,1485Advanced Fibers &Materials Textiles

3,489
2

17,39061

Total

36,02869

Other(Note 1)

2,855
579

Total

38,883648

Figure in quarterly
consolidated
Adjustment
statements of(Note 2)income(Note 3)—(648)

38,883—

Total
15,1533,491 17,452
36,0973,434 39,532(648)
38,883
Segment income
1,712
204
90
2,008
148
2,157
(702)
1,454
(Notes) 1. Other includes the Environmental Business, Medical Business, Health & Amenity Business, and Real Estate-related
Business.
2. Adjustment of 702 million yen for segment income includes corporate expenses that are not allpcated to each reportable segment.
3. Segment income is adjusted with operating income presented in quarterly consolidated statements of income .

2. Information concerning goodwill, etc. by reportable segment.
(Significant gain on negative goodwill)
The Company posted a gain on negative goodwill in the Polymers business. This was because theacquisition cost of shares in Terabo Co., Ltd. that the Company additionally acquired fell below theamount of the minority interests that decreased due to the additional acquisition. For information,
the gain on negative goodwill amounted to 48 million yen in the first quarter of the fiscal year
ending March 31, 2013.

-8 -Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2013

(6) Business combinations
The first quarter of the current consolidated fiscal year ending March 31, 2013 (April 1, 2012 to June 30,
2012)(Transactions under common control)
1. Outline of the transaction(1) Name and major businesses of the combined entity
Name of the combined entity: Terabo Co., Ltd.
Major businesses of the combined entity: Processing and sale of plastic products (compounds,
sheets and pressed products)(2) Date of business combination
May 1, 2012
(3) Legal form of the business combination
Under the share exchange agreement, the Company became a wholly-owning parent company andTerabo became a wholly-owned subsidiary. The Company implemented the Share Exchange byfollowing the procedures for a simplified share exchange as provided for under paragraph 3 ofArticle 796 of the Companies Act.
2. Outline of the accounting treatment implemented
The combination was implemented as a transaction under common control in accordance with the―Accounting Standard for Business Combinations‖ (ASBJ Statement No. 21, December 26, 2008)
and the ―Guidance on Accounting Standard for Business Combinations and Accounting Standard forBusiness Divestitures‖ (ASBJ Guidance No. 10, December 26, 2008)
3. Acquisition cost and details of shares in a subsidiary additionally acquired by the Company(1) Acquisition cost: 263 million yen(2) Details of the acquisition cost: fund to acquire shares of common stock of the Company
4. Share exchange rate by type of stock, calculation method for the share exchange rate and number ofissued shares(1) Share exchange rate by type of issued stock
1.46 shares of common stock of Terabo Co., Ltd. per share of common stock of the Company(2) Calculation method for the share exchange rate
The Company requested several financial advisors to calculate the share exchange rate. Based on
the reports submitted, the parties concerned decided the share exchange rate after consultation.
(3) Number of issued shares
Common stock: 4,963,109 shares of common stock of the Company (including 400,000 sharesfrom treasury stock it owns)
5. Amount of and reason for gain on negative goodwill(1) Amount of gain on negative goodwill
48 million yen(2) Reason for gain on negative goodwill
A gain on negative goodwill was posted because the acquisition cost of shares in Terabo Co., Ltd.
that the Company additionally acquired fell below the amount of the minority interests that
decreased due to the additional acquisition.

-9 -