Member of Financial Accounting Standards Foundation

Financial Results for the 1st Quarter of the Fiscal Year Ending March 31, 2009
August 5, 2008
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: Otofumi Onishi, President and Chief Executive Officer
Contact: Kazuo Otsuki, General Manager of Accounting Department
Expected submission of quarterly report: August 13, 2008

TEL: 06-6281-5721(Figures less than one million yen were omitted.)
1. Consolidated performance for 1st quarter of fiscal year ending March 31, 2009 (April 1, 2008 to June 30, 2008)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales
Operating income
Ordinary income
Quarterly net income
Million yen%
Million yen%
Million yen%
Million yen%
Q1 of FY ending March 31, 2009
52,605
1,155
1,005
122
Q1 of FY ended March 31, 2008
54,635
7.6
2,259
32.4
2,458
80.1
1,658 224.9

Q1 of FY ending March 31, 2009
Q1 of FY ended March 31, 2008

Quarterly net income per share
Yen
0.26
3.49

Quarterly net income per share after full dilution
Yen-(2) Consolidated financial situation
Total assets
Net assets
Capital adequacy ratio
Net assets per share
Million yen
Million yen%
Yen
Q1 of FY ending March 31, 2009
304,863
34,942
10.3
65.74
FY ended March 31, 2008
309,043
38,37810.9
70.67(Reference) Shareholders’ equity 1st quarter of fiscal year ending March 31, 2009: 31,264 million yen Fiscal year ended March 31,
2008: 33,611 million yen
2. Dividend payment(Base date)
FY ended March 31, 2008
FY ending March 31, 2009

End of Q1

End of Q2Yen

FY ending March 31, 2009 (forecast)(Note) Revision of dividend forecast for the current quarter: No-

Dividend per share
End of Q3
Yen
Yen
-

Year end

Annual
Yen
2.00

-

Yen
2.00
-

2.00

2.00

3. Forecast of consolidated performance for fiscal year ending March 31, 2009 (April 1, 2008 to March 31, 2009)(Percentages represent changes from same period in previous year.)
Net income
Net sales
Operating income Ordinary income
Net income
per shareSix-month period ending September Million yen% Million yen% Million yen% Million yen%
Million yen
30, 2008
115,000
4,500
2,500
500
1.05
Fiscal year ending March 31, 2009
245,000
4.4
13,000 12.5
9,000
12.3
4,000 157.9
8.41(Note) Revision of forecast of consolidated performance for the current quarter: No
4. Others(1) Changes in significant subsidiaries during the term (changes in specified subsidiaries accompanying change of scope of
consolidation): No
Included:(Company name:) Excluded:(Company name:)(2) Adoption of simplified accounting method and special accounting practices for preparation of quarterly consolidated financial
statements: Yes(Note) For details, please refer to [Qualitative information and financial statements] and “4. Others” on page 3.
(3) Changes in accounting principles, procedures and presentations for preparation of quarterly consolidated financial statements (thoseincluded in “Changes in Important Matters for Preparation of Quarterly Consolidated Financial Statements”)
c Changes associated with revision of accounting standards: Yesd Other changes: Yes(Note) For details, please refer to [Qualitative information and financial statements] and “4. Others” on page 3.
(4) Number of shares outstanding (Common stock)c Number of shares outstanding at end of term (including treasury stock):
1st quarter of the fiscal year ending March 31, 2009: 475,969,000 sharesFiscal year ended March 31, 2008: 475,969,000 sharesd Number of treasury stocks at end of term
1st quarter of the fiscal year ending March 31, 2009: 401,602 sharesFiscal year ended March 31, 2008: 393,124 shares
e Average number of shares outstanding during the term (quarterly consolidated accumulated period)
1st quarter of the fiscal year ending March 31, 2009: 475,572,018 shares
1st quarter of the fiscal year ended March 31, 2008: 475,616,095 shares* Explanation on appropriate use of forecasts of performance and other special items
1. The forward-looking statements in this document concerning the forecast of performance for the fiscal year ending March 31, 2009 are
based on currently available information and the company’s assumptions to be considered reasonable. The actual performance may
be significantly different from the forecast due to various factors.
2. Effective from the fiscal year ending March 31, 2009, “Accounting Standard for Quarterly Financial Statements” (ASBJ Statement No.
12) and “Implementation Guidance for Accounting Standards for Quarterly Financial Statements” (ASBJ Guidance No. 14) have been
applied. The quarterly consolidated financial statements were prepared in accordance with “Regulations for Quarterly Consolidated
Financial Statements.”

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Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2009

[Qualitative information and financial statements]
1. Qualitative information on consolidated performanceWith higher natural resource prices and rising concerns over inflation, there were growing signs of a decelerationin growth. As a result, in the first quarter of the fiscal year ending March 31, 2009 (from April 1, 2008 to June 30,2008), net sales amounted to 52,605 million yen, operating income totaled 1,155 million yen, ordinary income came
to 1,005 million yen, and quarterly net income was 122 million yen. The company saw its sales and profits
decrease.
Summary of business by segment[Polymers]
In the film business, price revision and cost reduction contributed to an improvement in profitability of nylon
film in the overseas market. Sale volumes increased, but price revision could not keep up with jumps in raw
material and fuel prices in the domestic market. In the resin business, profitability as a whole deteriorated due to a
decline in demand from the automobile industry and jumps in raw material and fuel prices. In the nonwoven fabrics
business, shipment of polyester spunbond remained sluggish for construction and civil engineering use, but
shipment of cotton spunlace remained steady.
[Environmental Business/Advanced Materials]
In the environmental business, further intensifying competition and soaring material prices significantly squeezed
the profit margin on engineering works, preventing the company from securing sufficient profits to cover costs forsales. In the advanced materials business, shipment of activated carbon fibers grew, but shipment of glass fibers was
generally slow for industrial materials use including engineering works. Shipment of IC cloth continued to beaffected by inventory adjustment.
[Fibers & Textiles]
In the synthetic fiber business, shipment of long staple polyester and nylon fibers was sluggish for clothing use
excluding some sportswear. Their shipment declined for industrial material use such as in the construction andautomobile industries. Shipment of vinylon fibers was robust for reinforced concrete use with some price revisions.
In the natural fiber business, shipment of corporate uniforms remained weak and the business as a whole was very
severe with no improvement in the market condition in sight.
[Health & Amenity, Others]
In the health & amenity business, shipment of medical and dietary supplement products almost moved as planned.
In other businesses, revenue from the real estate business including sales of condominiums decreased.

2. Qualitative information on consolidated financial positions
Total assets amounted to 304,863 million yen, a decrease of 4,180 million from the end of the previous fiscal year.
This is mainly due to a decrease in notes and accounts receivable-trade. Liabilities totaled 269,921 million yen, adecrease of 743 million yen from the end of the previous fiscal year. This is mainly due to a decrease in notes andaccounts payable-trade. Net assets amounted to 34,942 million yen, a decrease of 3,436 million yen from the end of
the previous fiscal year. This is mainly because a decrease in foreign currency translation adjustment caused by yen
appreciation and a decrease in minority interests caused by additional purchases of subsidiaries’ equities.

3. Qualitative information on the forecast of consolidated performance
Since the performance for the first quarter of the fiscal year ending March 31, 2009 was almost in line with theplan, the company did not revise its six-month and full-year forecasts of consolidated performance announced on
May 9, 2008.

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Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2009

4. Others(1) Changes in significant subsidiaries during the term (changes in specified subsidiaries accompanying change ofscope of consolidation):
Not applicable(2) Adoption of simplified accounting method and special accounting practices for preparation of quarterly
consolidated financial statements:
In computing corporate income taxes, some consolidated subsidiaries took only major items into account interms of additions and deductions for the income and tax credits.
(3) Changes in accounting principles, procedures and presentations for preparation of quarterly consolidated
financial statementsc Effective from the fiscal year ending March 31, 2009, “Accounting Standard for Quarterly Financial
Statements” (ASBJ Statement No. 12) and “Implementation Guidance for Accounting Standards for Quarterly
Financial Statements” (ASBJ Guidance No. 14) have been applied. The quarterly consolidated financial
statements were prepared in accordance with “Regulations for Quarterly Consolidated Financial Statements.”
d Effective from the first quarter of the consolidated fiscal year ending March 31, 2009, “Practical Solution on
Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated Financial Statements”(ASBJ PITF No. 18 on May 17, 2006) has been applied. Accordingly, some revisions were made toconsolidated accounts, as necessary. Consequently, total assets and net assets at the end of the first quarter ofthe consolidated fiscal year decreased 574 million yen and 658 million yen, respectively, from those obtainedby the previous method. There was only minor impact on operating income, ordinary income and quarterly net
income before income taxes.
e Finance lease transactions without title transfer were formerly accounted for in accordance with the method
conforming to ordinary rental transactions. “Accounting Standard for Lease Transactions” (ASBJ Statement
No. 13 [Business Accounting Council, First Committee on June 17, 1993] revised on March 30, 2007) and“Guidance on Accounting Standard for Lease Transactions” (ASBJ Guidance No. 16 [Japanese Institute ofCertified Public Accountants, Committee of Accounting System on January 18, 1994] revised on March 30,2007) have become applicable to the preparation of quarterly consolidated financial statements forconsolidated fiscal years commencing on and after April 1, 2008. Effective from the first quarter of theconsolidated fiscal year ending March 31, 2009, these standards have been applied and finance leasetransactions without title transfer were accounted for in a similar manner with ordinary sale and purchasetransactions.
Leased assets related to finance lease transactions without title transfer are depreciated on a straight-line basis,
with the lease periods as their useful lives and no residual value. There is no impact on operating income,ordinary income and quarterly net income before income taxes from the revision.
(Additional information)f The company revised its employee severance payment plan on April 1, 2008, shifting part of future payment ofpension benefits to the defined contribution plan from the defined benefit plan. Consequently, past service
liabilities (reduction of liabilities) of 652 million yen were incurred.
g Taking advantage of the revision of ministerial ordinances on useful life, the company and some of its
consolidated subsidiaries reviewed use of its assets and shortened useful life of some machines and equipmentfrom ten years to seven years in the first quarter of the fiscal year ending March 31, 2009. There was only
minor impact on operating income, ordinary income and quarterly net income before income taxes.

-3-Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2009

5. Quarterly financial statements(1) Consolidated quarterly balance sheets
End of Q1 of FY ending March
2009(June 30, 2008)(Unit: Millions of yen)
Condensed consolidatedbalance sheet for previous FY(March 31, 2008)

13,17743,60840,84018,277
3,542
1,561
8,541
(54)
129,494

13,04550,03939,171
18,167
3,344
1,538
8,536
(65)
133,779

106,50957,536
164,045

107,382
56,629164,012

513
901
1,414

554
944
1,498

9,909
175,368
304,863

9,753
175,264
309,043

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials
Supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Land
Other (net value)
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Total investments and other assets
Total noncurrent assets
Total assets-4-Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2009

End of Q1 of FY ending March
2009(June 30, 2008)(Unit: Millions of yen)
Condensed consolidatedbalance sheet for previous FY(March 31, 2008)

35,672
71,74256,298
400
410
1,277
13

38,38572,27356,489
400
952
2,265
116

17,096
182,910

15,290186,172

800
64,4603,684
395
17,67087,010269,921800
62,823
3,483
408
16,97784,492
270,665

23,798
1,661
6,284
(44)
31,69923,798
1,661
7,196
(43)
32,612

(46)

(120)

(5)
2,914
(3,297)(434)
3,677
34,942
304,863(11)
3,484(2,354)998
4,767
38,378309,043

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds
Income taxes payable
Provision for bonuses
Provision for warranties for completed
construction
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Provision for retirement benefits
Provision for directors’ retirement benefits
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
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-5-Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2009

(2) Consolidated quarterly statements of income(3-month period ended June 30, 2008)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Total extraordinary income
Extraordinary loss
Loss on disposal of noncurrent assets
Business structure improvement expenses
Other
Total extraordinary loss
Quarterly net income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Minority interests in income
Quarterly net income(Unit: Millions of yen)
3-month period ended June 30, 2008
(April 1, 2008 to June 30, 2008)
52,605
43,692
8,912
7,756
1,155
79
70
31
1,269
1,451
971
630
1,601
1,005
31
31
182
257
152
592
445
117
186
304
18
122

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Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2009

Effective from the fiscal year ending March 2009, “Accounting Standard for Quarterly Financial Statements”(ASBJ Statement No. 12) and “Implementation Guidance for Accounting Standards for Quarterly Financial
Statements” (ASBJ Guidance No. 14) have been applied. The quarterly consolidated financial statements wereprepared in accordance with “Regulations for Quarterly Consolidated Financial Statements.”(3) Notes on going concern assumption
Not applicable(4) Segment informationa. Segment information by business
Three-month period ended June 30, 2008 (April 1, 2008 to June 30, 2008)(Unit: Millions of yen)
Polymers

Environmental
Business/Advanced
Materials

Fibers &TextilesHealth &Amenity,
Others

Net sales and operating revenue
I. Net sales(1) Net sales to outside customers(2) Inter-segment sales or transfers

17,818
941

7,067
192

23,587
208

4,132
820

52,6052,164(2,164)52,605-

Total

18,7597,259

23,795

4,953

54,769(2,164)52,605

17,293

7,274

23,735

4,762

53,066(1,617)51,449

1,466

(15)

60

191

1,702

(546)

1,155

II. Operating expenses
Operating income

Total

Elimination Consolidated
or corporate
total(Note) Of operating expenses, the amount of unallocatable operating expenses included in elimination or corporate
amounted to 600 million yen.
b. Segment information by geographic area
Three -month period ended June 30, 2008 (April 1, 2008 to June 30, 2008)
Segment information by geographic area is omitted since sales in Japan exceed 90% of total sales of all
segments.
c. Overseas sales
Three -month period ended June 30, 2008 (April 1, 2008 to June 30, 2008)
I. Overseas sales (million yen)
8,133
II. Consolidated sales (million yen)
52,605
III. Ratio of overseas sales to consolidated sales (%)
15.5(Note) Only total overseas sales were provided since there were no segments whose overseas sales exceeded 10% ofconsolidated sales.
(5) Notes on significant changes in the amount of shareholders’ equity
Not applicable-7-

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2009

“Reference material”
Financial statements for the 1st quarter of the previous fiscal year
(1) (Condensed) Consolidated quarterly statements of income
3-month period ended June 30, 2007
(April 1, 2007 to June 30, 2007)

Account title

Amount (million yen)
I. Net Sales
II. Cost of sales

54,63544,660Gross profit
III. Selling, general and administrative expenses

9,974
7,714

Operating income
IV. Non-operating income
Interest and dividends income
Equity in earnings of affiliates
Other

2,259
162
457
1,251

Total non-operating income
V. Non-operating expenses
Interest expenses
Other

1,870

Total non-operating expenses

1,671

Ordinary income
VI Extraordinary income
VII Extraordinary loss

2,458
1,249
475

996
675

Quarterly net income before income taxes

3,232
1,650
(77)

Tax expenses
Minority interests in income
Quarterly net income

1,658

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Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2009(2) Segment information
Segment information by business
Three-month period ended June 30, 2007 (April 1, 2007 to June 30, 2007)(Unit: Millions of yen)
Polymers

Environmental
Business/Advanced
Materials

Fibers &TextilesHealth &Amenity,
OthersTotal

Elimination Consolidated
total
or corporate

Net sales and operating revenue
I. Net sales(1) Net sales to outside customers(2) Inter-segment sales or transfers

16,931
976

6,574
139

25,086
159

6,041
765

54,6352,040(2,040)54,635-

Total

17,908

6,713

25,246

6,807

56,675(2,040)54,635

16,062

6,424

25,182

6,150

53,820(1,444)52,375

1,845

289

63

656

2,855

(595)

2,259

II. Operating expenses
Operating income(Note) Of operating expenses, the amount of unallocatable operating expenses included in elimination or corporate
amounted to 586 million yen.

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