Member of Financial Accounting Standards Foundation

Financial Results for the 2nd Quarter of the Fiscal Year Ending March 31, 2016
November 10, 2015
Listed stock exchanges: Tokyo Stock Exchange
Company name: Unitika Ltd.
Code number: 3103
URL: http://www.unitika.co.jp/e/home.htm
Representative: Hiroyuki Shime, President and Chief Executive Officer
Contact: Shoji Ishikawa, Executive Officer, General Manager of Accounting Department
TEL: +81-6-6281-5721
Expected submission of quarterly report: November 13, 2015
Expected commencement date for paying dividend: –Preparation of supplementary explanation documents for quarterly financial results: Yes
Holding of an analyst meeting for quarterly financial results: Yes (for securities analysts and institutional investors)(Figures rounded down to nearest million yen.)
1. Consolidated performance for 2nd quarter of fiscal year ending March 31, 2016 (April 1, 2015 to September 30, 2015)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales
%
(5.6)
(0.9)

Millions of yen

Q2 of FY ending March 31, 2016
Q2 of FY ended March 31, 2015

(Note) Comprehensive income

Operating income

73,254
77,623%
41.6
0.1

Millions of yen

4,423
3,123

Quarterly profit
attributable to owners ofparentOrdinary income
%
43.9
(6.0)

Millions of yen

3,050
2,120

Millions of yen

1,721(21,613)%——

Q2 of FY ending March 31, 2016: 1,781 million yen [%]Q2 of FY ended March 31, 2015: (22,015) million yen [%]Quarterly net income per share

Quarterly net income per share after full dilution
Yen
1.35

Yen
2.12
(37.69)Q2 of FY ending March 31, 2016
Q2 of FY ended March 31, 2015

(2) Consolidated financial situation
Total assets
Q2 of FY ending March 31, 2016
FY ended March 31, 2015

(Reference) Shareholders’ equity

Net assets

Millions of yen
226,608
235,882

Capital adequacy ratio

Millions of yen
32,70331,590

%
13.0
12.0

2nd quarter of fiscal year ending March 31, 2016: 29,395 million yen
Fiscal year ended March 31, 2015: 28,354 million yen

2. Dividend payment
Dividends per share
End of Q1

End of Q2

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

End of Q3
Yen
0.00

Yen



Year end
Yen

Total
Yen
0.00



Yen
0.00

0.00

0.00
FY ending March 31, 2016 (forecast)
0.00
(Note) Revision of the latest dividend forecast: None
(Note) The above Dividend payment refers to dividends paid to the holders of common stock. For details of dividend payment to the holders of classshares (unlisted), the rights of which are different from those of common stock, please refer to Dividend payment to the holders of class shares
mentioned below.

3. Forecast of consolidated performance for fiscal year ending March 31, 2016 (April 1, 2015 to March 31, 2016)(% figures represent changes from same period in previous year.)Net sales

Operating income

Ordinary income

Profit attributable toowners of parent

Net income per
share

%

Millions of yen%

Millions of yen%

Millions of yen%

yen

145,000(8.9)
FY ending March 31, 2016
(Note) Revision of the latest forecasts of operational results: None

11,300

26.7

8,800

14.6

3,000



3.47

Millions of yen

Member of Financial Accounting Standards Foundation* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying change of scope of
consolidation): Yes
New companies: ― (company name)
Excluded companies: 5 companies; (company name): Unitika Berkshire Co., Ltd., Unitika Information Systems Co., Ltd., DiabondIndustry Co., Ltd., Unitika Environmental Technical Center Ltd., Unitika NP Cloth Co., Ltd.
(2) Adoption of special accounting methods for preparing quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
 Changes in accounting policies due to revisions of accounting standards: Yes
 Changes of accounting policies other than the above: No Changes in accounting estimates: No
 Retrospective restatement: No(4) Number of shares outstanding (Common stock) Number of shares outstanding at end of term (including treasury stock):
2nd quarter of the fiscal year ending March 31, 2016: 577,523,433 sharesFiscal year ended March 31, 2015: 577,523,433 shares Number of treasury stocks at end of term
2nd quarter of the fiscal year ending March 31, 2016: 801,749 sharesFiscal year ended March 31, 2015: 794,415 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
2nd quarter of the fiscal year ending March 31, 2016: 576,726,075 shares
2nd quarter of the fiscal year ended March 31, 2015: 576,738,174 shares* Information on implementation of quarterly review procedures
The summary of financial statements is not subject to quarterly review procedures in accordance with the Financial Instruments andExchange Act. At the time of disclosing the summary of financial statements, the quarterly financial statement review procedures
have been implemented.

* Explanation on appropriate use of forecasts of performance and other special items
The forward-looking statements in this document concerning forecasting of performance etc. are based on currently available
information and assumptions considered by the company to be reasonable. Such statements are neither promises nor guarantees of
future performance. The actual performance may be significantly different from forecasts due to various factors. Concerning
assumptions used as a basis for forecasting business performance and precautionary statements when using the forecast of
performance, please refer to 1. Qualitative Information on Quarterly Results (3) Explanation of future forecast information
including forecast of consolidated performance on page 4 of the attachment.

Member of Financial Accounting Standards Foundation

Dividend payment to the holders of class shares
The breakdown of dividends per share related to class shares, the rights of which are different from those of common stock, is asfollows:
Annual dividends
End of Q1
Class A share

Yen

End of Q2

FY ended March 31, 2015

—

0.00

FY ending March 31, 2016

—

0.00

FY ending March 31, 2016 (forecast)Class B share

Yen

Yen

—

0.00

FY ending March 31, 2016

—

0.00

Class C share

Yen

Yen

8,021.90

8,021.90—

12,000.00

12,000.00

Yen
—

Yen

FY ended March 31, 2015

—

0.00

FY ending March 31, 2016

—

0.00

Total

—

—

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

Yen

FY ended March 31, 2015

FY ending March 31, 2016 (forecast)End of Q3

Yen

Yen

Yen

Yen

15,870.00

15,870.00

23,740.00

23,740.00

Yen

Yen

—

40,109.60

40,109.60—

60,000.00

60,000.00

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2016

 Table of contents for the attachment
1. Qualitative Information on Quarterly Results ....................................................................................... 2(1) Explanation of operational results ............................................................................................ 2(2) Explanation of financial situation ............................................................................................. 3(3) Explanation of future forecast information including forecast of consolidated performance ...... 4
2. Matters concerning Summary Information (Notes) ............................................................................... 4(1) Changes in significant subsidiaries during the period ............................................................... 4(2) Adoption of special accounting methods for preparing quarterly consolidated financial
statements ............................................................................................................................... 4(3) Changes in accounting policies, changes in accounting estimates and retrospective
restatements ............................................................................................................................ 4
3. Quarterly Financial Statements............................................................................................................. 5(1) Consolidated quarterly balance sheets ...................................................................................... 5(2) Consolidated quarterly statements of income and consolidated quarterly statements ofcomprehensive income ............................................................................................................ 7
Consolidated quarterly statements of income
Six-month period ended September 30, 2015 ............................................................................... 7
Consolidated quarterly statements of comprehensive income
Six-month period ended September 30, 2015 ............................................................................... 8(3) Consolidated quarterly statements of cash flows ...................................................................... 9(4) Notes on quarterly consolidated financial statements .............................................................. 10(Notes on going concern assumption) ............................................................................................ 10(Notes on significant changes in shareholders’ equity) ................................................................... 10(Segment information) .................................................................................................................. 10
4. Supplementary Information ................................................................................................................ 11-1 -Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2016

1. Qualitative Information on Quarterly Results(1) Explanation of operational results
In the first six months of the consolidated fiscal year ending March 31, 2016 (from April 1, 2015 to
September 30, 2015), the government implemented economic measures according to its growth strategy
and the yen remained weak. During the period, the Japanese economy continued recovering modestly,
supported by a recovery in business performance centered on export-oriented companies, the positiveeffects of falling crude oil prices, and improvement of the employment and income environment.
Meanwhile, the economic outlook became increasingly uncertain due to risks that threatened to drive
down the economy, such as rising consumer prices and the slowdown of growth in emerging economies
triggered by the economic slowdown in China.
Under these circumstances, the Unitika Group tried to strengthen its foundation as a functional materials
manufacturer centered on the Polymers business and also reform the structure of under-performing
businesses with the aim of achieving targets at an early stage under the growth strategy stated in its new
medium-term management plan, which started in the last fiscal year. During the first six months of thecurrent consolidated fiscal year under review, the Group also transferred equities in its consolidated
subsidiaries including Unitika Berkshire Co., Ltd. and Unitika Environmental Technical Center Ltd. anddecided to sell the real estate of its former Toyohashi Plant site.
As a result, in the first six months of the current consolidated fiscal year under review, the Unitika Group
reported net sales of 73,254 million yen (down 5.6% year-on-year), operating income of 4,423 million
yen (up 41.6% year-on-year), ordinary income of 3,050 million yen (up 43.9% year-on-year) and profit
attributable to owners of parent of 1,721 million yen (net loss of 21,613 million yen in the same periodof the previous year).
The Unitika Group has decided it will continue to pay no interim dividend for the fiscal year ending
March 31, 2016. The management sincerely appreciates shareholders’ understanding in this matter.
Here is an overview of the business results by segment.
From the first quarter of the current accounting year, Unitika reclassified its reporting segments. The
statements referring to the comparison below are based on reclassified figures of the same period of theprevious year. For details, please see 3. Quarterly Consolidated Financial Statements, (4) Notes onquarterly consolidated financial statements (Segment information).
[Polymers]
In the Films business, domestic sales in the packaging sector increased because shipments for frozen foodpackaging applications grew steadily due to the summer heat in Japan, while overseas sales were sluggish
due to the economic slowdown in South East Asia and China. Sales volumes for new barrier nylon film,rose robustly. Sales in the industrial sector grew, since sales of high value-added products, including
silicon-free mold release polyester film, and a heat-resistant polyamide film, expanded for electric andelectron–ic equipment applications. As a result, sales and profits increased in the Films business segment.
In the Resin business, sales of nylon resins remained flat due to a slump in the automobile industry inJapan. However, sales of thermoplastic saturated copolymeric polyester resin, and environmentallyfriendly water-based polyolefin cationic emulsion, increased steadily for solar cell panel applications. In
addition, sales of thermoplastic polyester sheet, expanded for electric and electronic equipment
applications. Furthermore, sales of polyarylate resin, grew robustly for information terminal applications.
As a result, overall sales remained unchanged, but profits increased in the Resin business segment.
In the Non-woven Fabrics business, sales of polyester spunbond fabrics decreased, mainly for agriculturaland building materials applications in Japan, despite steady domestic sales for daily product applications.
Exports of polyester spunbond fabrics were also weak, since the Chinese economy lost steam. Meanwhile,
sales of cotton spunlace for daily product applications increased against the backdrop of an increase in
inbound demand. As a result, sales decreased but profits increased in the Non-woven Fabrics business.
Consequently, the Polymers business posted operating income of 3,763 million yen (up 51.1% year-onyear) on net sales of 28,067 million yen (up 0.2% year-on-year).
[Advanced Materials]
In the Glass Fibers business, sales for building-related material applications were strong, but sales forcivil engineering applications were weak in the Industrial Materials business. In the electronic materials
sector, sales of general-use IC cloth were sluggish due to weak demand for information terminal
applications. However, sales of high value-added IC cloth, in general, remained strong.
In the Glass Beads business, sales volumes for road marking applications recovered, while sales forindustrial and reflective material applications declined. Meanwhile, in the Activated Carbon Fibers-2 -Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2016business, sales remained poor, since demand for mainstay water purifier applications did not recover,although sales for industrial applications were strong.
Consequently, the Advanced Materials business posted operating income of 694 million yen (up 19.0%
year-on-year) on net sales of 5,607 million yen (down 7.0% year-on-year).
[Fibers and Textiles]
In the Industrial Materials business, although sales of ultra-high strength polyester filament yarn wereweak in the field of civil engineering, its main applications, profitability improved as a result of the shift
in sales focus to high-profit-margin products., In the short-fiber polyester business, profitability improved
significantly due to efforts to reduce sales of low-profit-margin products and boost high-profit-margin
products in response to the business restructuring.
In the Garments, Lifestyle Materials, and Bedding business, sales in the uniform field decreased due toinventory adjustments of uniforms for factory workers, and the cost of procuring overseas products rosedue to the weaker yen. Meanwhile, sales in the sports field remained weak, but sales in women’s clothing
fields were strong due to an increase in sales of secondary products. In addition, exports of denim
remained robust.
Consequently, the Fibers and Textiles business posted operating income of 573 million yen (up 754.7%
year-on-year) on net sales of 32,774 million yen (down 11.2% year-on-year).
[Others]
The Others category posted an operating loss of 631 million yen (operating loss of 32 million yen in thesame period of the previous year) on net sales of 6,805 million yen (up 2.1% year-on-year) due to theeffects of transfer of equities and businesses and liquidation associated with the business portfolio
restructuring.
(2) Explanation of financial situation
Total assets decreased by 9,273 million yen from the end of the previous consolidated fiscal year to
226,608 million yen. This decrease was mainly due to the decrease in notes and accounts receivable-trade,inventories, and property, plant and equipment. Liabilities decreased by 10,385 million yen to 193,905
million yen, mainly due to the decrease in notes and accounts payable-trade and provisions. Net assets
increased by 1,112 million yen to 32,703 million yen. This was mainly due to the increase in total net
assets as a result of the reporting of profit attributable to owners of parent, despite a decrease inshareholders’ equity and an increase in accumulated other comprehensive income due to reversal ofrevaluation reserve for land.
Here is a summary of the cash flow situation.
(Net cash provided by [used in] operating activities)
Net cash provided by operating activities during the first six months of the current consolidated fiscal
year amounted to 2,390 million yen (down 55.3% year-on-year) due to cash-inflow—the total of income
before income taxes and minority interests and non-cash items, such as depreciation and amortization.
(Net cash provided by [used in] investing activities)
Net cash used in investment activities amounted to 784 million yen during the first six months of thecurrent consolidated fiscal year (2,249 million yen used in the same period of the previous fiscal year)
due to capital expenditures despite proceeds from sales of assets associated with the business portfolio
restructuring.
(Net cash provided by [used in] financing activities)
Net cash used in financing activities during the first six months of the current consolidated fiscal year
amounted to 1,716 million yen (8,557 million yen provided in the same period of the previous
consolidated fiscal year) due to repayment of loans payable.
As a result, cash and cash equivalents at the end of the second quarter of the current consolidated fiscal
year decreased by 310 million yen from the end of the previous consolidated fiscal year to 31,397 million
yen.

-3 -

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2016(3) Explanation of future forecast information including forecast of consolidated performance
The Company has not changed its forecast of consolidated performance for the fiscal year ending March
31, 2016 announced on May 12, 2015.
2. Matters concerning Summary Information (Notes)(1) Changes in significant subsidiaries during the period
From the first quarter of the current consolidated accounting year, Unitika Berkshire Co., Ltd., Unitika
Information Systems Co., Ltd., Diabond Industry Co., Ltd., and Unitika Environmental Technical Center
Ltd. were excluded from consolidation as a result of divestiture of their shares.
From the second quarter of the current consolidated accounting year, Unitika NP Cloth Co., Ltd. was
excluded from consolidation as a result of the completion of liquidation.
(2) Adoption of special accounting methods for preparing quarterly consolidated financial statements
Not applicable(3) Changes in accounting policies, changes in accounting estimates and retrospective restatements(Changes in accounting policies)(Application of Accounting Standards for Business Combination)
From the first quarter of the current consolidated accounting year, the Company adopted the AccountingStandard for Business Combination (ASBJ Statement No. 21, September 13, 2013, hereinafter the"Business Combination Accounting Standards"), the Accounting Standards for Consolidated Financial
Statements (ASBJ Statement No. 22, September 13, 2013, hereinafter the "Consolidated AccountingStandards"), and the Accounting Standard for Business Divestitures (ASBJ Statement No. 7, September
13, 2013, hereinafter the "Business Divestitures Accounting Standards"). In response to the adoption ofthese standards, the Company changed the accounting treatment of the Company's equity in subsidiaries
under the control of the Company. Specifically, differences resulting from the Company's acquisition ofshares of subsidiaries are recorded as a capital surplus, and the costs related to those acquisitions arerecorded as expenses for the fiscal year in which the acquisitions are made. For business combinations inand after the first quarter of the current consolidated accounting year, the method to allocate acquisition
costs has changed. The acquisition cost modified by temporary accounting is allocated to the consolidated
financial statements for the quarter in which the business combination is implemented. In addition, thepresentation of net income has also changed. And the presentation of "minority interests" has changed to"non-controlling interests”. To reflect these changes, presentations in the consolidated financial
statements for the first six months and the full year of the previous consolidated fiscal year werereclassified.
In the consolidated statement of cash flow for the first six months of the current consolidated fiscal year
under review, cash flows related to payments or proceeds from changes in ownership interests in
subsidiaries that do not result in change in scope of consolidation are posted in Cash flows from financing
activities. Meanwhile, cash flows related to expenses for purchase of shares of subsidiaries resulting inchange in scope of consolidation or payments or proceeds from changes in ownership interests in
subsidiaries that do not result in change in scope of consolidation are posted in Cash flows from operating
activities.
In adopting the Business Combination Accounting Standards, etc., the Company adopts the transitional
treatments as stipulated in Article 58-2 (4) of the same Standards, Article 44-5 (4) of the Consolidated
Accounting Standards, and Article 57-4 (4) of the Business Divestiture Accounting Standards in and after
the beginning of the first quarter of the current consolidated accounting year.
As a result, operating income, ordinary income and net income before income taxes for the first six
months of the current consolidated accounting year increased by 4 million yen, respectively. Capitalsurplus as of the end of the second quarter (September 30, 2015) decreased by 47 million yen.

-4 -

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2016

3. Quarterly Financial Statements(1) Consolidated quarterly balance sheets(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2015)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Machinery, equipment and vehicles, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-5 -Q2 of FY ending March 2016
(September 30, 2015)

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

31,41935,661
34,321
4,570(148)
105,824

18,16776,904
21,371
116,443

22,75374,523
16,784
114,061

4
1,480
1,485

2
1,552
1,554

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

5,280
(111)
5,168
120,784
226,608

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2016

(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2015)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
A product repair reserve fund
Provision for business structure improvement
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for directors’ retirement benefits
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-6 -Q2 of FY ending March 2016
(September 30, 2015)

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

15,604
2,042
1,129
216
1,306
3,316
1,198
10,46435,277130,127
26
12,353
17,941
160,449
204,291

129,052
7
11,442
18,124
158,627
193,905100
60,275(31,138)(45)
29,191

100
28,448122(46)
28,625

468

527

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

(203)
6,671
(2,954)(3,270)769
3,307
32,703
226,608

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2016

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

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

Six-month period
ended September 30, 2014
(April 1, 2014 toSeptember 30, 2014)
77,62362,64014,982
11,8583,123(Unit: Millions of yen)Six-month period
ended September 30, 2015
(April 1, 2015 to
September 30, 2015)
73,25458,264
14,98910,566
4,423

89
48
660

35
45
–

8

5

45
230
1,083

159
264
509

1,401
684
2,085
2,120

1,200
682
1,882
3,050

–

128

–

375

–
–

43
546

259
2,894
20,139374
23,667

251
–
525
85
862

(21,546)

2,735

451
(385)
65
(21,612)0(21,613)

68
931
1,000
1,734
13
1,721

-7 -

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2016

(Consolidated quarterly statements of comprehensive income)(Six-month period ended September 30, 2015)

Profit (loss)

Six-month period ended
September 30, 2014
(April 1, 2014 toSeptember 30, 2014)(21,612)(Unit: Millions of yen)Six-month period ended
September 30, 2015
(April 1, 2015 to
September 30, 2015)
1,734

46
(265)
–
(868)

58
21
(66)
(136)

684

169

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans,
net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

-8 -

(402)

46

(22,015)

1,781(21,879)

1,755

(136)

26

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2016

(3) Consolidated quarterly statements of cash flows

Cash flows from operating activities
Income (loss) before income taxes and minority interests
Depreciation
Impairment loss
Business structure improvement expenses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for business structure
improvement
Increase (decrease) in provision for product repair
Increase (decrease) in other provisionInterest expenses
Loss (gain) on disposal of non-current assets
Loss (gain) on sales of non-current assets
Loss (gain) on sales of shares of subsidiaries andassociates
Decrease (increase) in notes and accounts receivabletrade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing 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
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of common shares
Cash dividends paid
Other, net
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 -Six-month period ended
September 30, 2014
(April 1, 2014 toSeptember 30, 2014)(Unit: Millions of yen)Six-month period ended
September 30, 2015
(April 1, 2015 to
September 30, 2015)(21,546)
2,372
2,894
18,791
(1)
986

2,735
2,344
–
525
(136)
(649)

1,150

(407)

13
(30)
1,401
259
–

(630)
(137)
1,200
251
(128)

–

(375)

1,482

2,477

1,927
(1,726)
(515)
7,458
138
(1,408)
(840)
5,348

2,847
(4,316)(1,875)
3,725
81(1,210)
(206)
2,390

5
(11)
–
(2,038)
0

6
(11)
17
(3,122)
2,105

–

129

(205)
(2,249)91(784)(24,582)50(4,054)
37,218
–
(74)
8,557
(35)
11,62019,557
31,177111–(1,011)
–
(666)
(149)
(1,716)(200)(310)
31,70831,397

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2016(4) Notes on quarterly consolidated financial statements(Notes on going concern assumption)
Not applicable(Notes on significant changes in shareholders’ equity)
Not applicable(Segment information)
Segment Information
I. Six-month period ended September 30, 2014 (April 1, 2014 to September 30, 2014)
Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment
Polymers

Advanced Fibers &Materials Textiles

Total

Other
(Note 1)

Total

Adjustment(Note 2)

Figure in quarterly
consolidated
statements ofincome(Note 3)

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

28,016
5,821

6,030
492

36,910482

70,957
6,796

6,665
1,010

77,6237,806–(7,806)

77,623–

Total

33,837

6,523

37,39277,753

7,675

85,429(7,806)

77,623

Segment income (loss)
2,490
583
67
3,140
(32)
3,107
15
3,123
(Notes) 1. The Other category comprises business segments that are not included in reportable segments. It includes Environmental
business, Medical business, Healthcare & Amenity business, and Real Estate-related business and the like.
2. Adjustment of Segment income (loss) is attributable to the elimination of inter-segment transactions.
3. Segment income (loss) is adjusted with operating income in consolidated statements of income.

II. Six-month period ended September 30, 2015 (April 1, 2015 to September 30, 2015)
1. Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment
Polymers

Advanced Fibers &Materials Textiles

Total

Other
(Note 1)

Total

Adjustment(Note 2)

Figure in quarterly
consolidated
statements ofincome(Note 3)

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

28,067
5,478

5,607
461

32,774404

66,448
6,344

6,805
560

73,254
6,904–(6,904)73,254–

Total

33,546

6,068

33,17872,7937,365

80,158(6,904)73,254

Segment income (loss)
3,763
694
573
5,030
(631)
4,399
24
4,423
(Notes) 1. The Other category comprises business segments that are not included in reportable segments. It includes Environmental
business, Medical business, Healthcare & Amenity business, and Real Estate-related business and the like.
2. Adjustment of Segment income (loss) is attributable to the elimination of inter-segment transactions.
3. Segment income (loss) is adjusted with operating income in consolidated statements of income.

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

- 10 -

Unitika Ltd. (3103)

Financial results for 2nd quarter of fiscal year ending March 31, 2016

4. Supplementary Information
1. Results and earnings forecast for fiscal year ending March 2016 (consolidated)(Millions of yen)
FY ended
March 2014
FY ended
March 2015
FY endingMarch 2016
Comparison
with prior year

Consolidated

Net sales

OperatingincomeOrdinary
incomeProfit attributableto owners of parent

Full year

162,686

6,799

4,713

583

Q2
Full year
Q2
Full year (forecast)
Q2
Full year

77,623
159,126
73,254145,000(4,368)(14,126)

3,123
8,916
4,423
11,300
1,300
2,384

2,120
7,680
3,050
8,800
929
1,120

(21,613)(27,033)
1,721
3,000
23,33430,033

2. Segment information (consolidated)(Millions of yen)
Advanced
Polymers
Materials
Results forprevious
fiscal year

Results for
current
fiscal year

1st six-month
period ended
September
2014(Results)
1st six-month
period ended
September
2015(Results)

Comparison with the same
period of the previous year

Net sales to outside
customers
Component ratio (%)
Operating income
Component ratio (%)
Net sales to outside
customers
Component ratio (%)
Operating income
Component ratio (%)
Net sales to outside
customers

Fibers &Textiles

Other

Adjustment

Consolidated
total

28,016

6,030

36,910

6,665

–

36.1
2,490
79.7

7.8
583
18.7

47.6
67
2.1

8.6
(32)
(1.0)

–

28,067

5,607

32,774

6,805

–

38.3
3,763
85.1

7.7
694
15.7

44.7
573
13.0

9.3
(631)
(14.3)

–

50

(423)

(4,135)139–(4,368)

Increase/decrease fromprevious year (%)

0.2

(7.0)

(11.2)

2.1

–

(5.6)

Operating income

1,272

110

506

Increase/decrease fromprevious year (%)

51.1

19.0

754.7

77,623
100.0
3,123
100.0

15
0.5

73,254
100.0
4,423
100.0

24
0.5

(598)
–

8

1,300

54.4

41.6

3. Capital expenditures, Depreciation (Property, plant and equipment), R&D expenditures, Interest-bearing liabilities,
Financial account balance, Number of permanent employees (consolidated)(¥ million, persons)

FY ended
March 2014
1st six-month
period ended
September 2014
FY ended
March 2015
1st six-month
period ended
September 2015

Capitalexpenditures

Depreciation(Property,
plant andequipment)

R&D
expenditures

Full year

4,995

4,936

3,881

164,552(2,768)

4,513

Q2

2,378

2,267

1,973

135,902(1,263)

4,571

Full year

4,808

4,715

3,940

133,903(2,446)

4,458

Q2

3,047

2,198

1,654

132,224(1,118)4,023

Interest-bearing
Financialliabilities (endaccount balanceof fiscal year)

Number ofpermanent
employees(persons)

4. Cash flow (consolidated)(Millions of yen)
FY ended
March 2014
1st six-month
period ended
September 2014
FY ended
March 2015
1st six-month
period ended
September 2015

Cash flow fromoperating activities

Cash flow frominvestment activities

Cash flow fromfinancing activities

Full year

6,839(4,103)(3,053)

19,557Q2

5,348(2,249)8,557

31,177Full year

6,080

(145)

5,870

31,708

Q2

2,390

(784)

(1,716)

31,397- 11 -Cash and cash equivalents
at end of fiscal year