Member of Financial Accounting Standards Foundation

Financial Results for the 1st Quarter of the Fiscal Year Ending March 31, 2017
August 5, 2016
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: Masanori Ohnishi, General Manager of Accounting Department
TEL: +81-6-6281-5721
Expected submission of quarterly report: August 12, 2016
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 down to nearest million yen.)
1. Consolidated performance for 1st quarter of fiscal year ending March 31, 2017 (April 1, 2016 to June 30, 2016)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales

Operating income

Quarterly net income
attributable to owners ofparentOrdinary income%% Millions of yen% Millions of yen% Millions of yen
31,289 (12.4)
3,153 38.7
1,637 (11.6)
1,191 (23.3)
35,734 (5.8)
2,273 48.2
1,852 184.2
1,552 Q1 of FY ending March 31, 2017: 1,388 million yen [(0.8%)]
Q1 of FY ended March 31, 2016: 1,400 million yen [ %]Diluted quarterly net income
Quarterly net income per shareper share
Yen
Yen
1.63
0.91
2.26
1.22
Millions of yen

Q1 of FY ending March 31, 2017
Q1 of FY ended March 31, 2016
(Note) Comprehensive income

Q1 of FY ending March 31, 2017
Q1 of FY ended March 31, 2016
(2) Consolidated financial situation

Q1 of FY ending March 31, 2017
FY ended March 31, 2016
(Reference) Shareholders’ equity

Total assets
Net assets
Capital adequacy ratio
Millions of yen
Millions of yen%
203,173
38,32717.2
219,957
37,93615.7
1st quarter of fiscal year ending March 31, 2017: 34,981 million yen
Fiscal year ended March 31, 2016: 34,598 million yen

2. Dividend payment
End of Q1Yen
FY ended March 31, 2016
FY ending March 31, 2017
FY ending March 31, 2017
(forecast)

Dividends per share
End of Q3

End of Q2



Year end

Yen
0.00



Yen

Yen
0.00

0.00



0.00

Total
Yen
0.00

0.00

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

3. Forecast of consolidated performance for fiscal year ending March 31, 2017 (April 1, 2016 to March 31, 2017)(% figures represent changes from same period in the previous year.)Net sales
Millions of yen

1st half of FY ending March 31, 2017
FY ending March 31, 2017

Operating income Ordinary income%

66,000 (9.9)
137,500 (6.1)(Note) Revision of the latest forecasts of operational results: None

Millions of yen%

5,200 17.6
11,700 12.0

Millions of yen

Profit attributable toowners of parent

Net income
per share%

Millions of yen%

Yen

4,100 34.4
9,000 31.9

3,200
7,000

85.9
1.0

4.68
10.41

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: 2 companies; (company name): Unitika Realty Co., Ltd. and Unimore 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: 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, 2017: 577,523,433 sharesFiscal year ended March 31, 2016: 577,523,433 shares Number of treasury stocks at end of term
1st quarter of the fiscal year ending March 31, 2017: 805,796 sharesFiscal year ended March 31, 2016: 805,686 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
1st quarter of the fiscal year ending March 31, 2017: 576,717,677 shares
1st quarter of the fiscal year ended March 31, 2016: 576,728,143 shares* Information on implementation of quarterly review procedures
The summary of financial statements is not subject to quarterly review procedures in accordance with the Financial Instruments andExchange Act. At the time of disclosing the summary of financial statements, the quarterly financial statement review procedures
have been implemented.
* Explanation on appropriate use of forecasts of performance and other special items
The forward-looking statements in this document concerning forecasting of performance etc. are based on currently available
information and assumptions considered by the company to be reasonable. Such statements are neither promises nor guarantees of
future performance. The actual performance may be significantly different from forecasts due to various factors. Concerning
assumptions used as a basis for forecasting business performance and precautionary statements when using the forecast of
performance, please refer to 1. Qualitative Information on Quarterly Results (3) Explanation of future forecast information
including forecast of consolidated performance on page 3 of the attachment.

Member of Financial Accounting Standards Foundation

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

End of Q1
Class A share
FY ended March 31, 2016
FY ending March 31, 2017
FY ending March 31, 2017 (forecast)Class B share
FY ended March 31, 2016
FY ending March 31, 2017
FY ending March 31, 2017 (forecast)Class C share
FY ended March 31, 2016
FY ending March 31, 2017
FY ending March 31, 2017 (forecast)

Yen
—
—
Yen
—
—
Yen
—
—

End of Q2

Annual dividends
End of Q3

Yen
0.00

—

0.00

—

Yen
0.00

Yen

Yen
—

Year end
Yen
12,000.00

Yen
12,000.00

12,000.00

12,000.00

Yen
23,740.00

Yen
23,740.00
23,740.00
Yen
60,000.00
60,000.00

0.00
Yen
0.00

—
—

23,740.00
Yen
60,000.00

0.00—

60,000.00

Yen

Total

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2017

 Table of contents for the attachment
1. Qualitative Information on Quarterly Results ....................................................................................... 2(1) Explanation of operational results ............................................................................................ 2(2) Explanation of financial situation ............................................................................................. 3(3) Explanation of future forecast information including forecast of consolidated performance ...... 3
2. Matters concerning Summary Information (Notes) ............................................................................... 3(1) Changes in significant subsidiaries during the period ............................................................... 3(2) Adoption of special accounting methods for preparing quarterly consolidated financial
statements ............................................................................................................................... 3(3) Changes in accounting policies, changes in accounting estimates and retrospective
restatements ............................................................................................................................ 3(4) Additional information ............................................................................................................. 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, 2016.................................................................................... 6
Consolidated quarterly statements of comprehensive income
Three-month period ended June 30, 2016.................................................................................... 7(3) Notes on quarterly consolidated financial statements ................................................................ 8(Notes on going concern assumption) .............................................................................................. 8(Notes on significant changes in shareholders’ equity) ..................................................................... 8(Segment information) .................................................................................................................... 8-1-

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2017

1. Qualitative Information on Quarterly Results(1) Explanation of operational results
During the first three-month period of the consolidated accounting year under review, the Japanese
economy remained at a standstill, reflecting the increasing sense of deceleration in corporate earnings andconsumer spending on the back of the uncertain trends in stock prices and exchange rates, although some
improvement in the employment and income environment was observed. Overseas markets also saw
uncertainties for the future outlook due to concerns over the possible impact of Brexit (the exit of theUnited Kingdom from the EU) and the deceleration of growth in emerging countries in Asia and Latin
America.
Under these circumstances, the Unitika Group endeavored to strengthen its foundation as a functional
materials manufacturer centering on the Polymers business with the aim of achieving targets at an earlystage under the growth strategy stated in its new medium-term management plan, which started in May
2014.
As a result, in the three-month period of the consolidated accounting year under review, the Unitika Group
reported net sales of 31,289 million yen (down 12.4% year on year), operating income of 3,153 million
yen (up 38.7% year on year), ordinary income of 1,637 million yen (down 11.6% year on year), and net
income attributable to owners of parent of 1,191 million yen (down 23.3% year on year).
Business results by segment are as stated below.
[Polymers]
In the Films business, the packaging sector maintained a robust trend in Japan following the previous
accounting year due to growth in demand in line with the forecast for extreme summer heat, as well as inoverseas markets where sales volume rose as a result of the increase in production capacity of P.T.
EMBLEM ASIA, a subsidiary. In industrial applications, demand shrank for information terminal
applications, but profits increased supported by sales growth in highly value-added items such as heatresistant polyamide film.
In the Resin business, while sales of nylon resins fell slightly reflecting the impact of revisions of selling
prices due to lower oil prices, highly functional resins represented by the Company’s original polyarylate
resin and thermoplastic saturated copolymeric polyester resin enjoyed strong sales growth. Subsidiaries
in the resin domain also recorded strong sales, contributing to a growth in profits.
In the Non-woven Fabrics business, profits increased in polyester spunbond fabrics, reflecting growth in
the sales volume of industrial materials-related applications despite sluggish sales in agricultural
applications. Meanwhile, sales of cotton spunlace continued to grow following the previous accounting
year, supported by expanded sales of daily products such as skin care products.
Strong profits throughout the entire Polymers business were also attributable to the declines in raw
material and oil prices.
Consequently, the Polymers business posted operating income of 2,661 million yen (up 55.7% year-onyear) on net sales of 14,003 million yen (up 2.1% year-on-year).
[Advanced Materials]
In the Glass Fibers business, the industrial materials sector recorded strong sales in building-relatedmaterials, whereas IC cloth in the electronic materials sector suffered weak sales due to slow recovery of
demand in information terminal applications.
In the Glass Beads business, orders for road marking applications showed low growth due to delayed
construction works, in contrast to robust sales for industrial applications in addition to reflective material
applications for overseas markets, which recorded good results.
The Activated Carbon Fibers business showed slightly weaker results in mainstay water purifier
applications due to production adjustments implemented on the user side. Meanwhile, the performanceof vapor phase applications remained robust, along with industrial sectors such as environment-relatedmaterials.
Consequently, the Advanced Materials business posted operating income of 273 million yen (down 25.7%
year on year) on net sales of 2,911 million yen (up 6.4% year on year).
[Fibers and Textiles]
In the Industrial Materials business, sales of ultra-high strength polyester filament yarn remained weak in
the field of civil engineering following the previous accounting year. However, profits improved due toincreased sales of high-profit-margin products such as compound fiber. In the short-fiber polyester
business, profitability was secured in line with the business plan despite a decrease in sales due to the
reduction of low-profit-margin businesses implemented by the end of the previous accounting year.
In the Garments, Lifestyle Materials and Bedding business, the uniform sector recorded strong sales ofcustomized products for the services industry and corporate customers, and the women’s clothing sector-2-Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2017

achieved robust sales of cloth and secondary products, resulting in increased sales. Both the sports andbedding sectors suffered low demand, which failed to recover. In overseas business, profits shrank due toimpacts such as the appreciation of the yen.
Consequently, the Fibers and Textiles business posted operating income of 369 million yen (up 38.4%
year on year) on net sales of 13,576 million yen (down 16.6% year on year).
[Others]
The Others category posted an operating loss of 146 million yen (operating loss was 82 million yen in thesame period of the previous year) on net sales of 798 million yen (down 73.4% year on year) due to theeffects of transfer of equities and businesses associated with the business portfolio restructuring
implemented in the last fiscal year.
(2) Explanation of financial situation
Total assets declined by 16,784 million yen from the end of the previous consolidated accounting year, to203,173 million yen. This was mainly attributable to the decrease in cash and deposits. Liabilities shrankby 17,175 million yen from the end of the previous consolidated accounting year, to 164,845 million yen,mainly due to the decrease in long-term loans payable. Net assets increased by 391 million yen from theend of the previous consolidated accounting year, to 38,327 million yen, mainly reflecting the increase inretained earnings arising from net income attributable to owners of parent.
(3) Explanation of future forecast information including forecast of consolidated performance
There are no modifications to the forecasts for the first six months and the full year of the fiscal year
ending March 31, 2017 announced on May 13, 2016.
2. Matters concerning Summary Information (Notes)(1) Changes in significant subsidiaries during the period
Two subsidiaries, Unitika Realty Co., Ltd. and Unimore Ltd., were excluded from the scope of
consolidation because they were absorbed as a result of the absorption-type merger implemented during
the first quarter of the consolidated accounting period under review in which the Company is a surviving
company.
(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(4) Additional information(Application of the Implementation Guidance on the Recoverability of Deferred Tax Assets)
The Implementation Guidance on the Recoverability of Deferred Tax Assets (ASBJ Implementation
Guidance No. 26 issued on March 28, 2016) has been applied since the first quarter of the consolidated
accounting year under review.

-3-Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2017

3. Quarterly Financial Statements(1) Consolidated quarterly balance sheets(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2016)
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
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-

Q1 of FY ending March 2017
(June 30, 2016)

42,10135,811
27,5664,228(106)
109,601

26,993
34,11827,176
4,461(93)
92,65622,06866,86915,230104,168

21,326
66,847
16,076104,250

1,714
1,714

1,774
1,774

4,505
(32)
4,473
110,356
219,957

4,523
(31)
4,491
110,516
203,173

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2017

(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2016)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
A product repair reserve fund
Provision for business structure improvement
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for directors’ retirement benefits
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-5-

Q1 of FY ending March 2017
(June 30, 2016)

15,322
1,827
363
215
1,256
2,630
989
9,298
31,904

14,989
1,720
342
187
680
2,403
994
8,800
30,119124,142
7
11,513
14,452150,116
182,020

108,948
4
11,512
14,259134,725
164,845100
28,401
5,708(46)
34,164100
28,401
5,902(46)
34,358

433

484

(203)
6,474
(2,662)(3,608)434
3,338
37,936219,957

(163)
6,433
(2,615)(3,515)623
3,346
38,327203,173

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2017(2) Consolidated quarterly statements of income and consolidated quarterly statements of comprehensive
income(Consolidated quarterly statements of income)(Three-month period ended June 30, 2016)

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

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

-6-

(Unit: Millions of yen)Three-month period
ended June 30, 2016
(April 1, 2016 toJune 30, 2016)
31,28923,356
7,932
4,778
3,153

3
38
31
161
175
409

5
41
73
184
305

605

539

5

0



219
830
1,852

1,084
196
1,820
1,637



61

375



375

61

76
211
59
347
1,880
(2)
308
306
1,574
21
1,552

91
101
33
225
1,473
118
115
234
1,239
47
1,191



Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2017

(Consolidated quarterly statements of comprehensive income)(Three-month period ended June 30, 2016)(Unit: Millions of yen)Three-month period ended
June 30, 2015
(April 1, 2015 to June 30, 2015)

Three-month period ended
June 30, 2016
(April 1, 2016 to June 30, 2016)

1,574

1,239

117
16

ProfitOther 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

(392)
84
(174)

51
40
(41)
6
93
149

Comprehensive income

1,400

1,388

1,395

1,380

4

8



Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests-7-

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2017(3) Notes on quarterly consolidated financial statements(Notes on going concern assumption)
Not applicable(Notes on significant changes in shareholders’ equity)
Not applicable(Segment information)
Segment Information
I. Three-month period ended June 30, 2015 (April 1, 2015 to June 30, 2015)
Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment
Polymers

Advanced Fibers &Materials Textiles

Total

Other
(Note 1)

Total

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

Net sales
Net sales to outside customers

13,7192,736

16,27732,7333,001

35,734—35,734

Inter-segment sales or transfers

2,688

270

196

3,154

255

3,410

(3,410)—Total

16,407

3,006

16,47335,8883,257

39,145(3,410)35,734

1,709

368

266

2,344

(82)

2,262

11

2,273

Segment income (loss)(Notes) 1. The Other category, which includes the environmental business and real estate-related business, does not qualify as areportable operating segment.
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. Three-month period ended June 30, 2016 (April 1, 2016 to June 30, 2016)
1. Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment
Polymers

Advanced Fibers &Materials Textiles

Total

Other
(Note 1)

Total

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

Net sales
Net sales to outside customers

14,003

2,911

13,57630,490798

31,289—31,289Inter-segment sales or transfers

2,197

210

230

2,638

282

2,921

(2,921)—

Total

16,2003,121

13,807

33,1291,080

34,210(2,921)

31,289

2,661

273

369

3,304

(146)

3,158

(4)

3,153

Segment income (loss)(Notes) 1. The Other category, which includes design and construction expenses as well as improvement and maintenance expensesof plants, does not qualify as a reportable operating segment.
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.

-8-