Member of Financial Accounting Standards Foundation

Financial Report for Fiscal Year ended March 31, 2013
[Japanese GAAP] (Consolidated)
May 14, 2013

Company name: Unitika Ltd.
Code number: 3103
URL: http://www.unitika.co.jp/e/home.htm

Listed stock exchange: Tokyo Stock Exchange,
Osaka Securities
Exchange

Representative: Kenji Yasue, President and Chief Executive Officer
Contact: Shoji Ishikawa, General Manager of Accounting Department
TEL +81-6-6281-5721
Expected date for holding a regular shareholders meeting: June 27, 2013
Expected date for submitting securities report: June 27, 2013
Expected commencement date for paying dividend
Preparation of the attachment of Financial Report: Yes
Holding of a results presentation: Yes (for securities analysts and institutional investors)(Figures less than one million yen were omitted.)

1. Consolidated performance for fiscal year ended March 31, 2013 (April 1, 2012 to March 31,
2013)(1) Consolidated business results(Percentages represent changes from same period in previous year.)Net sales
Operating income
Ordinary income
Net income
Millions of% Millions of% Millions of% Millions of
%
yen
yen
yen
yen
FY ended March 31, 2013
160,190(8.3)
5,519(42.4)
3,853(33.0) (10,875)—
FY ended March 31, 2012
174,662
(3.3)
9,579
(8.9)
5,753
(6.0)
1,297
(46.9)(Note) Comprehensive income
FY ended March 31, 2013:( 10,841) million yen [—%]FY ended March 31, 2012: 1,205 million yen [(51.0%)]
Net income per
Net income per
Ratio of operating
share after full Return on equity Return on asset
share
income to sales
dilution
Yen
Yen
%
%
%
FY ended March 31, 2013(18.87)—(47.0)
1.5
3.4
FY ended March 31, 2012
2.35
2.28
5.1
2.1
5.5
(Reference) Equity in earnings/losses of affiliates FY ended March 31, 2013: (38 million yen)
FY ended March 31, 2012: (224 million yen)

(2) Consolidated financial situation
Total assets
Net assets
Capital adequacy ratio Net assets per share
Millions of yen
Millions of yen%
Yen
FY ended March 31, 2013
255,054
21,3177.0
30.88
FY ended March 31, 2012
268,486
32,207
10.6
49.81(Reference) Shareholders’ equity:
FY ended March 31, 2013: 17,809 million yen
FY ended March 31, 2012: 28,511 million yen(3) Consolidated cash flows situation
Cash flows fromoperating activities

Cash flows frominvesting activities

Millions of yen
16,04010,798FY ended March 31, 2013
FY ended March 31, 2012

Balance of cash andcash equivalents atperiod end
Millions of yen
Millions of yen(7,432)
19,636(4,393)
15,339Cash flows fromfinancing activities

Millions of yen(4,404)(7,449)2. Dividend payment
Annual dividend per share
End of Q1 End of Q2 End of Q3

Yen
FY ended March 31, 2012
FY ended March 31, 2013
FY ending March 31,
2014(forecast)

Yen

Yen

Year end

Annual

Yen

Yen




0.00
0.00




0.00
0.00

0.00
0.00



0.00



0.00

0.00

AnnualDividend
Dividend ratio
dividends paid payout ratio of net assets(Total)(consolidated) (consolidated)

Millions of
yen



%




%



3. Forecast of consolidated performance for fiscal year ending March 31, 2014 (April 1, 2013
to March 31, 2014)
Net salesFirst six-month period
Full year(Percentages represent changes from same period in previous year.)
Net income
Ordinary income
Net income
per share
Millions of% Millions of% Millions of
%
Yen
yen
yen
yen
2,800 20.8
1,200 145.9
200 —
0.35
7,500 35.9
4,000
3.8
2,000 —
3.47

Operating income

Millions ofyen%

77,500165,000

1.8
3.0* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries
accompanying change of scope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates and retrospective
restatement(i) Changes in accounting policies due to revisions of accounting standards: No(ii) Changes of accounting policies other than the above: No(iii) Changes in accounting estimates: No(iv) Retrospective restatement: No(3) Number of shares outstanding (Common stock)(i) Number of shares outstanding at end of period (including treasury stock):
Fiscal year ended March 31, 2013: 577,523,433 sharesFiscal year ended March 31, 2012: 572,960,324 shares(ii) Number of treasury stocks at end of period
Fiscal year ended March 31, 2013: 766,802 sharesFiscal year ended March 31, 2012: 570,138 shares(iii) Average number of shares outstanding during the term
Fiscal year ended March 31, 2013: 576,460,782 sharesFiscal year ended March 31, 2012: 552,192,961 shares(Reference) Summary of non-consolidated performance
1. Non-consolidated performance for fiscal year ended March 31, 2013 (April 1, 2012 to March 31,
2013)(1) Non-consolidated business results(Percentages represent changes from same period in previous year.)Net sales
Operating income
Ordinary income
Net income
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
FY ended March 31, 2013
91,976 (6.3)
3,891 (50.0)
1,926 (60.8)(8,804) —FY ended March 31, 2012
98,159 (4.4)
7,774 (21.2)
4,911 (22.8)
286 (92.0)
Net income per share
FY ended March 31, 2013
FY ended March 31, 2012

Yen
(15.27)0.52

Net income per share after
full dilution
Yen

0.50

(2) Non-consolidated financial situation
Total assets
Net assets
Capital adequacy ratio Net assets per share
Millions of yen
Millions of yen%
Yen
FY ended March 31, 2013
217,473
22,47410.3
38.97
FY ended March 31, 2012
224,739
31,187
13.9
54.49(Reference) Shareholders’ equity:
FY ended March 31, 2013: 22,474 million yen
FY ended March 31, 2012: 31,187 million yen* Presentation of situation of audit proceduresThis financial report is not subject to audit procedures under the Financial Instruments andExchange Law of Japan. Audit procedures concerning financial statements have not been
completed at the date of disclosure of this financial report.

* 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. Suchstatements are neither promises nor guarantees of future performance. The actual performance may besignificantly different from forecasts due to various factors. Concerning assumptions used as a basis forforecasting performance and precautionary statements when using the forecast of performance, please refer
to 1. Analysis of business results and financial situation (1) Analysis of Business results: Forecast of
business performance for fiscal year ending March 31, 2014 on page 3 of the Financial Report (theattachment).

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

1. Analysis of business results and financial situation ................................................................................... 2(1) Analysis of Business results ................................................................................................................ 2(2) Analysis on financial situation ............................................................................................................ 4(3) Basic policy for profit distribution and dividends for the fiscal year ended March 31, 2013 and thefiscal year ending March 31, 2014............................................................................................................ 5(4) Critical events etc., regarding the assumption of a going concern ........................................................ 5
2. Management Policies ............................................................................................................................... 6(1) Basic management policies ................................................................................................................. 6(2) Targeted management index ............................................................................................................... 6(3) Medium- to long-term business strategies and issues to be addressed .................................................. 6
3. Consolidated financial statements............................................................................................................. 8(1) Consolidated balance sheets................................................................................................................ 8(2) Consolidated income statement and consolidated comprehensive income statement ...........................10(Consolidated income statement) .........................................................................................................10(Consolidated comprehensive income statement) .................................................................................11(3) Consolidated statements of changes in net assets ................................................................................12(4) Consolidated statements of cash flow.................................................................................................15(5) Notes regarding consolidated financial statements .............................................................................16(Notes regarding assumption of a going concern) ................................................................................16(Significant items that are the basis for preparation of consolidated financial statements) .....................16(Segment information etc.) ..................................................................................................................19(Per share information)........................................................................................................................21(Material subsequent events) ...............................................................................................................21
4. Other ......................................................................................................................................................22
Transfer of directors ............................................................................................................................22
5. Supplementary materials .........................................................................................................................23-1-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

1. Analysis of business results and financial situation(1) Analysis of Business results(i) Business results for fiscal year ended March 31, 2013
In the current fiscal year, reconstruction demand following the Great East Japan Earthquake, as well as
correction of the appreciation of the yen and a stock market rally after the change of government raised
expectations for economic recovery in Japan. However, the outlook for the Japanese economy remained
uncertain, because exports were sluggish due to the lingering European sovereign debt crisis, theeconomic slowdown in emerging countries and deteriorating Japan-China relations; consumer spending
was weak; and the employment situation did not improve.
In such an environment, the Unitika Group tried to strengthen its business foundation as an advanced
materials manufacturer, mainly Polymers, and implemented measures to improve the profitability oflow profit margin businesses in accordance with policies under its medium-term, three-year
management plan, Change & Challenge 2014, which started this fiscal year. Despite such efforts, theGroup saw its earnings decrease substantially, due to soaring raw material and fuel prices associatedwith the sharp depreciation of the yen against the U.S. dollar at the beginning of the year and a decline
in sales volume. As a result, the Unitika Group reported net sales of 160,190 million yen (down 14,472
million yen year-on-year), operating income of 5,519 million yen (down 4,060 million yen year-onyear) and ordinary income of 3,853 million yen (down 1,900 million yen year-on-year). Because theGroup recorded extraordinary loss, such as impairment loss and business structure improvement
expenses; and income taxes increased due to a reversal of deferred tax assets, the net loss amounted to
10,875 million yen (net income of 1,297 million yen in the previous year).
The Unitika Group has decided it will pay no dividend for the current fiscal year. The management
sincerely appreciates your understanding in this matter.
Here is a summary of business by segment.
[Polymers]
In the Films business, sales to the packaging sector decreased, because demand did not increase on afull scale in spite of a gradual recovery from inventory adjustment following brisk sales after the March
11, 2011 earthquake. Meanwhile, sales to the industrial sector also declined, because demand frominformation terminal device applications, which recovered despite overall demand for polyester films
being sluggish, lost momentum in the second half of the current fiscal year. As a result, sales andincome fell in the Films business as a whole.
In the Resins business, shipments of nylon for the automobile sector temporarily declined after the endof the government’s subsidy program for eco-friendly cars, but overall demand remained solid.
Shipments of polyester resins for the electric and electronics equipment sectors were weak, but
shipments of an environmentally friendly water-based polyolefin cationic emulsion for new applications
increased. Meanwhile, shipments grew for U-Polymer, Unitika’s original polyarylate resin for new
applications including information terminal device applications, but shipments for electric andelectronics equipment and office machinery applications remained flat. As a result, overall sales andincome decreased in the Resins business.
In the Non-woven Fabrics business, sales of polyester spunbond fabrics declined, because shipments for
sanitary materials, agriculture and general-use material applications were sluggish and exports alsostagnated despite increasing shipments for carpets and construction and civil engineering applications.
Meanwhile, sales of cotton spunlace decreased, because shipments for wet sheet applications, which
had continued to steadily increase until the previous fiscal year, fell due to inventory adjustment, though
shipments for other applications increased. As a result, overall sales and income decreased in the Nonwoven Fabrics business.
The Group strongly promoted the use of the biomass plastic Terramac in four fields: films, resins, nonwoven fabrics and textiles. Although demand from automobile applications was on a recovery path,
total shipments stagnated due to weak market conditions.
-2-Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

Consequently, the Polymers business posted operating income of 6,989 million yen (down 2,625
million yen year-on-year) on net sales of 61,217 million yen (down 6,077 million yen year-on-year).
[Advanced Materials]
In the glass fiber business, sales remained flat, because shipments for other applications stagnateddespite steady shipments for building and civil engineering refurbishment applications. Sales of IC cloth
struggled in the field of electronics materials due to intensifying competition, but profitability slightly
improved because of our efforts to raise the percentage of sales of information terminal device
applications to total sales. In the glass beads business, shipments for industrial use, mainly high-margin
products, decreased due to weak market conditions including electronics components, while those forroad marking applications and reflective materials applications, such as signs and protective clothing,also remained flat. Meanwhile, shipments of activated carbon fiber for water purifier applications werestrong, but the recovery of demand from wastewater treatment and VOC removal sheet applications was
slow.
Consequently, the Advanced Materials business posted operating income of 1,163 million yen (down
568 million yen year-on-year) on net sales of 14,081 million yen (down 938 million yen year-on-year).
[Fibers and Textiles]
In the Industrial Materials business, shipments of ultra-high strength polyester filament yarn for
mainstay construction and civil engineering applications remained flat due to lingering sluggish demand.
Intensifying price competition in Japan cut into the profit of the short-fiber polyester business despitesome improvement in its profit margin because of the depreciation of the yen against the U.S. dollar
from the beginning of 2013. In addition, the Group tried to expand sales of vinylon fiber by cultivating
new customers in emerging countries, while there was no sign of improvement in demand fromreinforced concrete applications, a replacement for asbestos, in Europe. Due to accelerating pricecompetition and a change in product mix, profitability deteriorated.
In the Garments, Lifestyle Materials, and Bedding business, demand for white coats and service
uniforms remained strong in the uniform field. Sales of high-value added products, which are designed
to meet diversified needs, were robust in the sporting clothing field, while profitability improved in thewomen’s clothing field because our selection and concentration strategy paid off. Meanwhile, somesubsidiaries saw their sales decrease due to weak market conditions.
Consequently, the Fibers and Textiles business posted operating loss of 370 million yen (operating
income of 744 million yen in the previous year) on net sales of 67,714 million yen (down 8,986 million
yen year-on-year).

[Others]
In the Healthcare & Amenity business, sales of health food, such as Hanabiratake-related goods, weresteady, supported by solid demand. However, domestic sales and exports of other functional dietary
materials, except food ingredients containing lactobionic acid and L-arabinose that sold well, remained
flat. In the Medical business, sales increased in the medical product field because of a rise in sales ofcatheters for drainage purposes and the launch of a new product in mainstay catheters for the treatmentof circulatory system diseases. In the biochemical field, sales of clinical diagnostic reagents were solid,
but sales of enzymes struggled due to weak market conditions in Japan.
In the Real Estate business, revenue from the sales of condominiums grew due to steady sales ofproperties that were completed in the second half of the current fiscal year.
Consequently, the Others category posted operating income of 1,324 million yen (up 572 million yen
year-on-year) on net sales of 17,177 million yen (up 1,530 million yen year-on-year).

-3-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013(ii) Forecast of business performance for fiscal year ending March 31, 2014
With the prospects for recovery in the main street economy in the next fiscal year remaining uncertain,
the Unitika Group will promote the growth strategy of the Polymers business, etc., thoroughly reduce
costs including fixed costs, implement measures to improve the profitability of low-profit businesses
and revise sales prices to pass any sharp rises in raw material and fuel prices to customers, with the aimof strengthening its balance sheet and enhancing shareholders’ equity. The Group forecasts net sales of
165,000 million yen, operating income of 7,500 million yen, ordinary income of 4,000 million yen, andnet income of 2,000 million yen for the fiscal year ending March 31, 2014.
(2) Analysis on financial situation
Total assets decreased by 13,432 million yen from the end of the previous fiscal year to 255,054 million
yen, mainly due to a decrease in inventories and property, and plant and equipment. Liabilities
decreased by 2,541 million yen from the end of the previous fiscal year to 233,736 million yen, mainly
due to a decrease in loans payable. Net assets decreased by 10,890 million yen from the end of theprevious fiscal year to 21,317 million yen, mainly due to a decrease in retained earnings because of anet loss.
Here is a summary of the cash flow situation.
(Net cash provided by [used in] operating activities)
Net cash increase provided by operating activities amounted to 16,040 million yen (up 5,242 million
yen year-on-year), due to a decrease in cash inflow—the total of the loss before income taxes,
depreciation and amortization—and inventories during the current fiscal year, though we posted loss
before income taxes.
(Net cash provided by [used in] investment activities)
Net cash used in investment activities amounted to 4,404 million yen loss (net cash loss of 7,449 million
yen in the previous fiscal year) due to capital expenditures of 5,801 million yen during the current fiscal
year.
(Net cash provided by [used in] financing activities)
Net cash used in financing activities amounted to 7,432 million yen loss (net cash loss of 4,393 million
yen in the previous fiscal year) due to a reduction in interest-bearing debt during the current fiscal year.
As a result, cash and cash equivalents at the end of the current fiscal year increased by 4,296 million
yen from the end of the previous fiscal year to 19,636 million yen.

-4-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

The table below shows trends in cash flow indicators.

(i)Shareholders’ equity ratio (%)(ii) Shareholders’ equity ratio on
market value basis (%)(iii) Ratio of interest-bearing debt tocash flow(iv) Interest coverage ratio

Year ended
March 31, 2013

Year ended
March 31, 2012

Year ended
March 31, 2011

7.0

10.6

8.3

11.5

11.1

11.9

10.6

16.3

17.8

5.4

3.3

3.0

(Notes) Shareholders’ equity ratio: Shareholders’ equity/Total assets
Shareholders’ equity ratio on market value basis: Market capitalization/Total assets
Ratio of interest-bearing debt to cash flow: Interest-bearing debt/Cash flow
Interest coverage ratio: Cash flow/Interest expense*1. Each indicator is calculated based on consolidated financial results.
*2. Cash flow is net cash provided by operating activities.
*3. Interest-bearing debt includes all liabilities, reported on the consolidated balance sheet, on
which interest is paid.
(3) Basic policy for profit distribution and dividends for the fiscal year ended March 31, 2013 and the fiscal
year ending March 31, 2014
The Unitika Group considers that the profit distribution to its shareholders is an important aspect of its
business, but management intends to cancel dividend payment for the fiscal year ended March 31, 2013,
with consideration on the business results and financial situation at the end of the fiscal year.
For the future, Unitika’s basic dividend policy is to conduct profit distribution to shareholders that is
appropriate to the Company’s financial results. At the same time, the Company intends to decide
dividend payment after considering the improvement of financial position and enhancing of internal
reserve for securing profit for shareholders from a long-term perspective.
(4) Critical events etc., regarding the assumption of a going concern
The Unitika Group’s shareholders’ equity amounted to 18,663 million yen in the current consolidated
fiscal year, because it posted a net loss of 10,875 million yen for the current consolidated fiscal year.
Consequently, the Group was in violation of restrictive financial covenants (criteria for shareholders’equity on the last day of the fiscal year or the second quarter of the fiscal year) on some of the long-termloans (outstanding balance of 4,600 million yen at the end of the current consolidated fiscal year). The
Unitika Group negotiated with financial institutions with whom it had concluded loan agreements to
refrain from exercising the right to claim acceleration of the loan maturity at the end of the current
consolidated fiscal year.
Management does not consider that there will be critical uncertainties regarding the assumption of agoing concern, since consolidated cash flows provided by operating activities amounted to 16,040
million yen, up 5,242 million yen year-on-year, due to reduction of inventories. As a result, cash position(cash and deposits) at the end of the current consolidated fiscal year totaled 19,668 million yen, up 4,307
million yen from the end of the previous consolidated fiscal year.
In order to bring about a radical change in earnings, the Unitika Group will promote the revamping of its
business structure and the reduction of fixed costs. The Group also will concentrate its resources on
growth areas, mainly the polymers and advanced materials fields, and promote a growth strategy for
improving and strengthening its organic growth to turn around its business performance.

-5-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

2. Management Policies(1) Basic management policies
Having the corporate mission of contributing to society by connecting daily life with technology, theUnitika Group has been aiming to become a company that contributes to the improvement of people’s
lives and preservation of the environment, and social recognition. Management believes that the Group’s
contributions to society will enhance its corporate value, which in turn will reward shareholders, while
the Company continues to promote its basic management policies: implementation of structural reform,
establishment of a foundation as a functional materials manufacturer and strengthening of its corporate
structure and shareholders’ equity.
(2) Targeted management index
The Unitika Group places greater importance on amount of sales, operating income and ordinary incomethat represent the results of its business activities. The Group considers enhancing its shareholders’equity ratio and reducing interest-bearing debts to strengthen its financial position and places emphasison and manages cash flows with great care.
(3) Medium- to long-term business strategies and issues to be addressed
In light of very poor business performance for the current fiscal year, the first year of Change &Challenge 2014, its medium-term, three-year management plan, the Unitika Group has reaffirmed its
determination to promote the growth strategy of the Polymers business, etc., thoroughly reduce costs
including fixed costs, review and implement measures to improve the profitability of low-profit
businesses and revise sales prices to pass on a sharp rise in raw material and fuel prices to customers. The
Group will raise the level of its revenue base and establish a solid business foundation by steadily
implementing these measures.
Here is a summary of the strategies and issues to be addressed for each business.
Polymers:
In the Films business, the Unitika Group will revise its sales prices to reflect a change in raw material
prices in the packaging field. In addition, P.T. EMBLEM ASIA, a subsidiary in Indonesia, will start
operation of advanced, large-scale equipment for producing nylon film in summer 2013. Furthermore, in
cooperation with UNITIKA EMBLEM CHINA, the Group will try to increase its market share in the
fast-growing Asian market, promote its product differentiation strategy in the Chinese market and expand
sales in the European and North American markets. The Unitika Group will step up efforts to expand
sales of newly developed products and cultivate new applications through improvement of productquality in the industrial field. In the Resins business, the Group will further focus on expanding the use of
XecoT, an environmentally friendly high heat-resistant polyamide resin, in automobile, and electrical andelectronics equipment applications. In regard to polyester resins, the Group will try to increase sales of
ARROWBASE, an environmentally-friendly water-based polyolefin cationic emulsion that has yielded
positive results, by exploring new applications for the resin, while promoting the adoption of UNIFINER,
a new heat-resistant and solvent-soluble polyarylate resin, in electrical and electronics equipment
applications to further increase earning power. In the Non-Woven Fabrics business, the Unitika Groupwill try to boost the use of its products for earthquake reconstruction applications, such as Eleves
Capping Sheet, a gas-permeable (perforated) tarpaulin made of a bi-component composite spun-bonded
nonwoven fabric, used at decontamination waste temporary storage sites. Concerning cotton spunlace,
the Group will expand sales for wet sheet applications and cultivate overseas markets. In regard to
TERRAMAC, a biomass plastic, the Unitika Group will strengthen the expansion of its use in Japan andoverseas by highlighting its advantages: reforming and processing technologies, such as thermal
resistance, and capability to supply the material in various forms.
Advanced Materials:
In the glass fiber business, the Unitika Group will focus on expanding sales of products that meetcustomers’ needs including high-functional products, such as nonflammable ceiling materials in theindustrial materials field. In regard to IC cloth in the electronics materials field, the Group will aim to-6-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

improve profitability by not only strengthening sales for information terminal device applications, butalso thoroughly reducing costs. Regarding glass beads, the Unitika Group will try to increase market
share by marketing differentiated products, mainly for industrial applications, and cultivate demand in
new fields. In the activated carbon fiber business, the Group will strengthen its overseas expansion of
products for waste water treatment applications, mainly in the Asian markets, and expand sales for water
purifiers built into faucets and promote the spread of new high-functional cartridge filters.
Fibers and Textiles:
In the industrial materials business, the Unitika Group will implement radical cost reduction measures at
all stages—procurement, production, sales and administration—to establish a foundation that enables it
to improve profitability. The Group also will strengthen the value chain for ultra-high-strength polyester
filament yarn and accelerate sales expansion of short-cut cotton products, including active promotion inoverseas markets, and high-performance materials, such as differentiated binder cotton in the short-fiber
polyester business. Regarding vinylon fiber for reinforced concrete applications, the Unitika Group will
try to improve profitability by expanding sales of high-value added products to new customers inemerging countries it has cultivated. In the Garments, Lifestyle Materials, and Bedding business, with theaim of achieving further growth, the Group, mainly Unitika Trading Co., Ltd., will strengthen global
expansion by actively using bases in Indonesia, China and Vietnam and expand product lineups that meetneeds in the field of safety, security, and environment.
Others and Healthcare & Amenity:
In the Healthcare & Amenity business, the Unitika Group will continue to cultivate new customers andcreate new products for health food, such as Byakugen Houou, and also expand sales of functional
dietary materials, such as Lactobionic acid, which has made a good start, and Ceramide, a mainstay
product. In the Medical business, the Group will try to expand sales of anti-thrombogenic catheters,
which now has a stronger product lineup mainly for the circulatory system, market Beschitin, a wounddressing, in the overseas market, and develop new applications and cultivate new customers for enzymes.
Regarding overseas business development, the Unitika Group will try to cement its position as a top
global player in the nylon film market through operation of the aforementioned advanced, large-scalenylon film manufacturing equipment and also focus on expanding sales of other businesses in the
Polymers, Advanced Materials and Fibers and Textiles segment in the fast-growing Asian market and theEuropean and North American markets using overseas bases in China and the ASEAN region.
The Group will define its medium- to long-term technological vision and develop biomass plastic,
functional resins, and heat-resistant film in the life science, environment and energy fields, which are
expected to serve as an engine for growth in the future, by making full use of both the polymer designand control technologies and function-adding technologies that the Unitika Group possesses.
The Unitika Group has established a cross-sectional business organization, Provincial Reconstruction
Support Team, with the aim of providing support to facilitate full-scale reconstruction from the Great
East Japan earthquake. The team has already started its activities. The Group will continue developing
businesses, such as offering products useful for debris and waste disposal, and decontamination andradiation measuring services, by using technologies and experiences accumulated in the industrial
materials, textiles, environmental survey and measurement fields in addition to the aforementioned nonwoven fabric Eleves Capping Sheet.
The Group will promote efficient management of operating capital more than ever before, including
cutting back inventories to reduce interest-bearing debt.

-7-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

3. Consolidated financial statements(1) Consolidated balance sheets(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2012)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures (net)
Machinery, equipment and vehicles (net)
Tools, furniture and fixtures (net)Land
Lease assets (net)
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Investments in capital
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets-8-

Current consolidated
fiscal year
(March 31, 2013)15,361
39,88447,797
1,775
3,824
(217)
108,425

19,66836,33939,776
1,330
3,329
(170)
100,274

21,401
21,944
1,218
104,766
748
3,066
153,145

18,38920,8571,235
103,163586
4,196
148,428

21
751
773

14
800
815

3,608
23
218
509
2,297
(515)
6,141
160,060
268,486

3,177
23
201
396
2,062
(325)
5,535
154,779
255,054

Unitika Ltd. (3103) Financial Report for Fiscal Year ended 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
Lease obligations
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
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for retirement benefits
Provision for directors’ retirement benefits
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
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-9-

Current consolidated
fiscal year
(March 31, 2013)25,191
69,993
34,613
369
515
1,848
23
142
11,324
144,022

22,06768,43332,925
301
756
1,567
—
1,087
11,423
138,562

68,601414
11,429
2,204
7,189
58
2,356
92,255236,278

65,162292
17,336
2,341
7,752
53
2,234
95,173
233,736

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

26,298
4,385(11,976)(44)
18,66326
42,764(4,041)(1,245)

114
6
2,979
(3,954)
(854)

3,696
32,207
268,486

3,508
21,317
255,054

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

(2) Consolidated income statement and consolidated comprehensive income statement(Consolidated income statement)(Unit: Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Rent income
Foreign exchange gains
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 losses
Loss on disposal of noncurrent assets
Impairment loss
Business structure improvement expenses
Loss on abolishment of retirement benefit plan
Other
Total extraordinary loss
Income (Loss) before income taxes and minority
interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income (loss) before minority interests
Minority interests in income
Net income (loss)- 10 -

Previous consolidated
fiscal year
(April 1, 2011 toMarch 31, 2012)
174,662
140,843
33,81924,239
9,579

Current consolidated
fiscal year
(April 1, 2012 toMarch 31, 2013)
160,190
130,827
29,362
23,843
5,519

154
104
70
—
1,066
1,395

97
92
67
1,107
917
2,281

3,265
224
1,731
5,220
5,753

2,997
38
910
3,947
3,853

164
—
164

817
48
866

531
—
2,792
299
434
4,057

515
4,782
2,405
—
711
8,415

1,861
533
12
545
1,315
18
1,297

(3,694)
857
6,306
7,163
(10,858)
17(10,875)

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

(Consolidated comprehensive income statement)(Unit: Millions of yen)

Income (loss) before minority interests
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Share of other comprehensive income ofassociates accounted for using equity method
Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable to owners of
the parent
Comprehensive income attributable to minority
interests- 11 -

Previous consolidated
fiscal year
(April 1, 2011 toMarch 31, 2012)
1,315

Current consolidated
fiscal year
(April 1, 2012 toMarch 31, 2013)(10,858)

76
(38)
368
(495)

87
(0)
(238)
79

(20)
(110)
1,205

88
17
(10,841)

1,174(10,937)30

96

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

(3) Consolidated statements of changes in net assets
Previous consolidated
fiscal year
(April 1, 2011 toMarch 31, 2012)
Shareholders’ equity
Capital stock
Balance at the beginning of current period
Changes of items during the period
Issuance of new shares-exercise of subscription
rights to shares
Total changes of items during the period
Balance at the end of current period
Capital surplus
Balance at the beginning of current period
Changes of items during the period
Issuance of new shares
Issuance of new shares-exercise of subscription
rights to shares
Total changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the beginning of current period
Changes of items during the period
Net income (loss)
Reversal of revaluation reserve for land
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the beginning of current period
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Total shareholders’ equity
Balance at the beginning of current period
Changes of items during the period
Issuance of new shares
Issuance of new shares-exercise of subscription
rights to shares
Net income (loss)
Reversal of revaluation reserve for land
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period- 12 -(Unit: Millions of yen)
Current consolidated
fiscal year
(April 1, 2012 toMarch 31, 2013)

23,79826,2982,500
2,500
26,298——26,298

1,661

4,161

—

223

2,500
2,500
4,161

—
223
4,385

(1,943)

(646)

1,297
(0)
—
1,297
(646)

(10,875)(453)(0)(11,329)(11,976)

(55)

(55)

(0)
—
(0)
(55)

(27)
39
11
(44)

23,46029,757

—

223

5,000
1,297
(0)
(0)
—
6,296
29,757—(10,875)
(453)
(27)
39
(11,093)
18,663

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

Previous consolidated
fiscal year
(April 1, 2011 toMarch 31, 2012)(Unit: Millions of yen)
Current consolidated
fiscal year
(April 1, 2012 toMarch 31, 2013)

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Balance at the beginning of current period

(49)

26

Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period

76
76
26

87
87
114

43

4

(38)
(38)
4

2
2
6

2,452

2,764

0
311
311
2,764

453
(238)
215
2,979

Balance at the beginning of current period(3,569)(4,041)

Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period

(471)
(471)
(4,041)

86
86(3,954)(1,123)(1,245)

0
(122)
(122)
(1,245)

453
(61)
391
(854)

Balance at the beginning of current period

3,641

3,696

Changes of items during the period
Purchase of shares of consolidated subsidiaries
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period

—
55
55
3,696

(284)
96
(188)
3,508

Deferred gains or losses on hedges
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Revaluation reserve for land

Balance at the beginning of current period
Changes of items during the period
Reversal of revaluation reserve for land
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Foreign currency translation adjustment

Total accumulated other comprehensive income
Balance at the beginning of current period
Changes of items during the period
Reversal of revaluation reserve for land
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Minority interests- 13 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

(Unit: Millions of yen)Previous consolidated
fiscal year
(April 1, 2011 toMarch 31, 2012)

Current consolidated
fiscal year
(April 1, 2012 toMarch 31, 2013)

Total net assets

Balance at the beginning of current period

25,97732,207—

223

Changes of items during the period

Issuance of new shares
Issuance of new shares-exercise of subscription rights toshares
Net income (loss)
Purchase of treasury stock
Disposal of treasury stock
Purchase of shares of consolidated subsidiaries
Net changes of items other than shareholders’ equity
Total changes of items during the period

5,000
1,297
(0)
—
—

(66)
6,230
32,207

Balance at the end of current period- 14 -—(10,875)
(27)
39
(284)
34
(10,890)
21,317

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

(4) Consolidated statements of cash flow
(Unit: Millions of yen)Previous consolidated
fiscal year
(April 1, 2011 toMarch 31, 2012)
Net cash provided by (used in) operating activities
Income (Loss) before income taxes and minority interests
Depreciation and amortization
Impairment loss
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for business structure improvement
Increase (decrease) in other provisionInterest expenses
Loss (gain) on disposal of noncurrent assets
Loss (gain) on sales of noncurrent assets
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
Sub-totalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) 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
Other, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of convertible bond-type bonds with
subscription rights to shares
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 the end of the current fiscal year

- 15 -

1,861
5,899

Current consolidated
fiscal year
(April 1, 2012 toMarch 31, 2013)

(102)
1,551
(482)
700
3,265
531
(164)
1,870
(1,339)303
345
14,239272(3,310)(402)
10,798(3,694)
5,675
4,782
(237)
550
945
(311)
2,997
515
(817)
3,608
8,201
(3,270)501
19,446188(2,957)(637)
16,040175(42)
86(7,713)211(165)(7,449)

(10)
(22)
401
(5,801)
1,198(169)(4,404)(3,558)31,340(36,748)
5,000(1,887)29,504(34,665)(425)(4,393)(205)(1,250)16,58915,339(384)(7,432)
92
4,296
15,33919,636——

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

(5) Notes regarding consolidated financial statements(Notes regarding assumption of a going concern)
Not applicable(Significant items that are the basis for preparation of consolidated financial statements)
1. Scope of consolidation
The Company has 45 consolidated subsidiaries and three non-consolidated subsidiaries as of the end of
the current period under review. Major consolidated subsidiaries are Nippon Ester Co., Ltd. and Unitika
Trading Co., Ltd. Total assets, net sales, net income/loss (corresponding to equity interest) and retained
earnings (corresponding to equity interest) of the three non-consolidated subsidiaries (Akoh Unitec
Service Co., Ltd., etc.) are small in value and do not significantly influence the consolidated financial
statements. The number of consolidated subsidiaries decreased by two from the end of the previous
period: one company due to a share transfer and the other due to a decline in importance (underliquidation).
2. Application of the equity method
The Company applies the equity method to the two non-consolidated subsidiaries and two affiliatedcompanies (AD’ALL Co., Ltd. and another) as of the end of the current period under review. The
number of non-consolidated subsidiaries fell by one from the end of the previous period due to a sharetransfer.
3. Account settlement date, etc. of consolidated subsidiaries
Among the consolidated subsidiaries, Unitika America Corp., Unitika (Shanghai) Ltd., Emblem Asia
Co., Ltd., Unitika Emblem China Ltd., Unitika Do Brasil LLC, Brazcot LLC, Unitika (Beijing) LLC andUnitex Co., Ltd. settle their accounts on December 31, and Unitika Hong Kong Ltd. settles its accounts
on February 28. For the purpose of preparing the consolidated financial statements, the financial
statements for the respective account settlement dates are used, and any necessary adjustments are madewith regard to significant transactions conducted during the period between the relevant settlement date
and the current consolidation date. It should be noted that Unitika Plastic (Thailand) Ltd. changed its
account settlement date to March 31 (the same as the consolidated settlement date) from the current
consolidated fiscal year, reporting results for a 15-month period.
4. Accounting standards(1) Evaluation standards and method for significant assets
Marketable securities
Other marketable securities
With market values:

Valued at fair value based on market values, etc. on the settlement
date (variance from valuation is processed with the method entirely
to charge or credit directly to equity, and selling cost is calculatedusing the moving average method.)
Without market values: Valued at cost using the moving average method
Derivatives
Valued at fair value
Inventories
Valued primarily at cost by using the moving average method (the balance sheet value iscalculated by the book value written-down method based on decline in profitability.)- 16 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

(2) Depreciation method for significant depreciable assets
Tangible fixed assets (excluding lease assets)
The Company and its consolidated subsidiaries primarily use the declining-balance method.
However, some consolidated subsidiaries use the straight-line method.
Intangible fixed assets (excluding lease assets)
Straight-line method
Lease assets
Lease assets under finance lease transactions that do not transfer ownership
Lease assets are depreciated using the straight-line method over the lease term, based on theassumption that the residual value is equal to zero.
(3) Accounting standards for important allowances
Allowance for doubtful receivables
In order to cover losses from uncollectible account receivables, the Company provides for
estimated uncollectible amount of normal receivables based on historical loss ratios. Specificclaims including doubtful receivables, etc. are individually evaluated for the likelihood ofrecovery and estimated uncollectible amount is provided.
Provision for bonuses
The Company provides for allowance for bonus based on the estimated amount of the payment
for employees.
Provision for loss on construction contracts
The Company has provided for reasonably estimated losses to be incurred in the next
consolidated fiscal year to prepare for anticipated losses on construction contracts.
Provision for business structure improvement
The Company provides for reasonably estimated amount of loss incurred in the next
consolidated fiscal year due to implementation of a business structure improvement program.
Allowance for retirement benefits

To cover payment of retirement benefits to employees, the Company provides for
retirement benefits based on the estimated amount of the retirement benefit obligationand the trust estate related to retirement benefit obligation (regarding some consolidated
subsidiaries, the retirement benefit obligation and pension assets) at the end of the fiscal
year ended March 31, 2013.
The transition difference due to a change in the accounting standards is equallyexpensed over 15 years.
The past service liabilities are amortized using the straight-line method over the averageremaining years of service of employees (generally 13 years) when the liability is
incurred.
Actuarial gains and losses are expensed using the straight-line method over the averageremaining years of service of employees (generally 13 years), allocated starting fromthe year each respective gain or loss is incurred.

- 17 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

Allowance for directors’ retirement bonuses
In the past, the Company and its consolidated subsidiaries provided for the amount payable atthe end of the subject term under the internal rule to cover payment of retirement bonuses todirectors (including executive officers). However, the Company and its consolidated
subsidiaries abolished the directors’ retirement bonus system in June 2006 and suspended thetransfer of such amount to allowance for directors’ retirement bonuses.
(4) Accounting standards for recognizing revenues and costs of construction contracts
The percentage-of-completion method has been applied to construction contracts if the outcome of
the construction activity is deemed certain on March 31, 2013 (the estimated percentage ofcompletion shall be based on the ratio of the cost incurred to the estimated total cost). The
completed-contract method has been applied to other construction contracts.
(5) Standards for translating important foreign currency assets or liabilities to Japanese currency
Foreign currency monetary assets and liabilities are converted into yen currency at the spot exchange
rate of the consolidated settlement date and exchange differences are treated as profit or loss.
Meanwhile, the assets and liabilities of overseas subsidiaries are converted into yen currency by the
spot exchange rate of the settlement date, and profits and expenses are converted into yen currency at
the average market rate during the period with the exchange differences included in the currency
exchange translation adjustment and minority interests.
(6) Interest relating to property for sale (inventories)
Interests paid in relation to some real estate for sale in progress among the real estate for sale held bysome consolidated subsidiaries are included in the acquisition amount of such real estate.
(7) Important hedge accounting method
The Company adopts deferred hedge accounting, and uses the method for translating foreign
currency receivables and payables on the basis of yen value cash flow fixed by forward contract for
exchange contracts that may satisfy requirements for the said method, and preferential procedures forinterest rate swaps that may satisfy requirements for preferential procedures.
(8) Items relating to amortization of goodwill
Goodwill is amortized using the straight-line method over 5 years.
(9) Scope of funds in consolidated statements of cash flows
Funds (cash and cash equivalents) stated in the consolidated statements of cash flows consist of cashon hand, demand deposits and short-term investments that are readily convertible into cash, areexposed to insignificant risk of changes in value and are redeemable in 3 months or less from eachacquisition date.
(10) Treatment of consumption taxes, etc.
The Company adopts the tax-excluding method.

- 18 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

(Segment information etc.)
Segment information
1. Summary of reportable segment
Unitika’s reportable segments are components of the Company for which separate financial
information is available. These segments are subject to regular reviews by the Board of Directors todecide the distribution of managerial resources and evaluate business results.
The Company sets up divisions by product and service in its head office. Each division formulates
comprehensive domestic and overseas strategies for its products and services and conducts businessactivities according to the strategies.
Unitika consists of segments by product and service based on divisions. The following three are its
reportable segments: Polymers, Advanced Materials, and Fibers & Textiles.
The Polymers segment manufactures and markets films, resins, and non-woven fabrics. The
Advanced Materials segment makes and sells glass fibers. The Fibers & Textiles segment produces
and distributes various types of fibers (threads, cotton, textiles and fabrics and the like).
2. Methods to calculate the amount of net sales, profit or loss, assets and other items by reportablesegment
Methods of accounting treatment of reported business segments are almost the same as those statedin the Significant items that are the basis for preparation of consolidated financial statements.
Inter-segment earnings and transfers are based on prevailing market prices.
3. Information on the amount of net sales, profit or loss, assets and other items by reportable segment
The previous fiscal year (April 1, 2011 to March 31, 2012)(Unit: Millions of yen)
Reportable segment

Polymers

Advanced
Materials

Fibers &Textiles

Other(Note 1)
Total

Total

Amountposted inConsoliAdjustment
dated(Note 2)
financialstatements(Note 3)

Net sales
Net sales to outside
customers
67,29415,02076,701
159,016
15,646
174,662—
174,662Inter-segment sales ortransfer
18
50
266
334
2,114
2,449
(2,449)—Total
67,312
15,07076,967
159,351
17,760177,111(2,449)174,662
Segment income
9,615
1,731
744
12,091751
12,843(3,263)
9,579
Segment assets
89,111
20,75876,701
186,571
51,222
237,793
30,692
268,486
Other items
Depreciation andamortization
2,565
641
1,502
4,709
877
5,586
312
5,899
Increase in property, plantand equipment andintangible assets
4,606
588
994
6,189
1,291
7,480
822
8,302
(Note) 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 thelike.
2. Adjustment details are as follows.
(1) Adjustment of (3,263) million yen for Segment income includes corporate expenses that are not allocated to eachreportable segment.
(2) Adjustment of 30,692 million yen for Segment assets include investment of surplus funds (cash and deposits) by
the parent company, long-term investment funds (investment securities) and assets, etc. related to the
Administration and the Research and Development Division of the parent company.
(3) Adjustment of 312 million yen for Depreciation and amortization is depreciation and amortization of common
assets that are not allocated to each reportable segment.
(4) Adjustment of 822 million yen for Increase in property, plant and equipment and intangible assets is an increasein common assets that are not allocated to each reportable segment.
3. Segment income is adjusted with operating income in consolidated statements of income.

- 19 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

Current consolidated fiscal year (April 1, 2012 to March 31, 2013)(Unit: Millions of yen)
Reportable segment

Polymers

Advanced
Materials

Fibers &Textiles

Other(Note 1)
Total

Total

Amountposted inConsoliAdjustment
dated(Note 2)
financialstatements(Note 3)

Net sales
Net sales to outside
customers
61,217
14,081
67,714143,013
17,177160,190—
160,190
Inter-segment sales ortransfer
23
56
235
315
2,249
2,565
(2,565)—
Total
61,241
14,137
67,950143,329
19,426
162,756(2,565)160,190
Segment income (loss)
6,989
1,163
(370)
7,782
1,324
9,107
(3,588)5,519
Segment assets
87,863
19,20065,276
172,339
46,765219,104
35,949255,054
Other items
Depreciation andamortization
2,623
526
1,356
4,507
836
5,344
330
5,675
Increase in property, plantand equipment andintangible assets
3,363
456
913
4,733
432
5,166
1,172
6,338
(Note) 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 thelike.
2. Adjustment details are as follows.
(1) Adjustment of (3,588) million yen for Segment income (loss) includes corporate expenses that are not allocated toeach reportable segment.
(2) Adjustment of 35,949 million yen for Segment assets include investment of surplus funds (cash and deposits) by
the parent company, long-term investment funds (investment securities) and assets, etc. related to the
Administration and the Research and Development Division of the parent company.
(3) Adjustment of 330 million yen for Depreciation and amortization is depreciation and amortization of common
assets that are not allocated to each reportable segment.
(4) Adjustment of 1,172 million yen for Increase in property, plant and equipment and intangible assets is an increasein common assets that are not allocated to each reportable segment.
3. Segment income (loss) is adjusted with operating income in consolidated statements of income.

- 20 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

(Per share information)
Previous consolidated fiscal year
(April 1, 2011 to March 31, 2012)
Net assets per share: 49.81 yen
Net income per share: 2.35 yen

Current consolidated fiscal year
(April 1, 2012 to March 31, 2013)
Net assets per share: 30.88 yen
Net income per share: 18.87 yen

Net income per share after full dilution: 2.28 yen

Information on net income per share after full dilution
was omitted, since the Group posted a net loss andthere was no potential common stock.
(Note) The basis for the calculation of net income per share or net loss per share, and net income per share after full
dilution is as follows:
Previous
Current
consolidated
consolidated
fiscal year
fiscal year
(April 1, 2011 to (April 1, 2012 toMarch 31, 2012) March 31, 2013)
Net income per share or net loss per share
Net income (loss) (million yen)
1,297
(10,875)
Amount not attributable to common stockholders (million yen)—
Net income (loss) attributable to common stock (million yen)
1,297
(10,875)
Average number of common stock during the fiscal year (thousand shares)
552,192
576,460
Net income per share after full dilution
Net income adjustment value (million yen)—
Increase in number of outstanding common shares (thousand shares)
16,651—(Of which convertible bond-type bonds with subscription rights to shares[16,651]—(thousand shares))
Summary of issuable shares not included in the computation of net income—

per share after full dilution, since these securities are not dilutive.

(Material subsequent events)
Not applicable- 21 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

4. OtherTransfer of directors
As of June 27, 2013
1. Candidates for position of director
Yusei Yamaguchi (reappointment; current Representative Director, Senior Managing Executive Officer,
Assistant to President, based in Tokyo Office, in charge of Accounting and Information Systems)
Takuro Matsunaga (reappointment; current Director, Managing Executive Officer, President & Chief
Executive Officer of Unitika Trading Co., Ltd. (part time))
Seizo Sakata (new appointment; current Senior Executive Officer, General Manager of Film Business)
2. Director to retire
Akio Nakagi (current Representative Director, Managing Executive Officer)
3. Candidate for position of auditor
Masao Nokihara (reappointment; current Auditor (part-time)) (Scheduled to work as a part-time
auditor)(Note) Masao Nokihara is a candidate for the position of external auditor.

Career summary of candidate for position of director
Seizo Sakata (Date of birth: May 12, 1953)
Employment history

April 1977
Joined Unitika Ltd.
April 2000
Manager of Spunbond business Control Office
October 2002 General Manager of Sales Department, Tokyo Packaging
Film Department, Film Business
April 2004
General Manager of Sales Department, Film Business
April 2007
Deputy General Manager of Film Business
June 2009
Executive Officer, General Manager of Film Business
June 2011
Senior Executive Officer, General Manager of Film
Business- 22 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

5. Supplementary materials(1) Results and earnings forecast for fiscal year ending March 2014 (consolidated)

Consolidated

FY ended
March 2012
FY ended
March 2013
FY endingMarch 2014
Comparison
with prioryear(Millions of yen)
Ordinary
Net income
incomeNet sales

OperatingincomeFull year

174,662

9,579

5,753

1,297

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

76,152
160,190
77,500165,000
1,348

2,317
5,519
2,800
7,500
483

487
3,853
1,200
4,000
713

(931)
(10,875)
200
2,000
1,131

Full year (forecast)

4,810

1,981

147

12,875(2) Segment information (consolidated)(Millions of yen)

Net sales to outside
customers
FY ended
Component ratio (%)
March 2012
Operating income
Component ratio (%)
Net sales to outside
customers
Results for
FY ended
Component ratio (%)
current fiscal
March 2013
year
Operating income
Component ratio (%)
Net sales to outside
customers
Increase/decrease
Comparison with prior year from prior year (%)
Operating income
Increase/decrease
from prior year (%)
Net sales to outside
customers(forecast) Component ratio (%)
Operating income
Component ratio (%)
FY ending
Net sales to outside
March 2014
customers(forecast)
Increase/decrease
Comparison from prior year (%)
Operating income
Increase/decrease
from prior year (%)
Results forprior fiscal
year

Elimination
Consolidatedor
total
corporate

Polymers

Advanced
Materials

Fibers &Textiles

67,29415,02076,701

15,646—

174,662

38.5
9,615
100.4

8.6
1,731
18.1

43.9
744
7.8

9.0
751
7.8

—
(3,263)(34.1)

100.0
9,579
100.0

61,217

14,081

67,714

17,177—160,190

38.2
6,989
126.6

8.8
1,163
21.1

42.3
(370)
(6.7)

10.7
1,324
24.0

—
(3,588)(65.0)

100.0
5,519
100.0

(6,077)(939)(8,987)

1,531—(14,472)

(9.0)

(6.3)

(11.7)

9.8

—

(8.3)

(2,626)(568)(1,114)

573

(325)

(4,060)(27.3)(32.8)

—

76.3

10.0

(42.4)

67,50014,50066,00017,000—165,000

40.9
7,300
97.3

8.8
1,500
20.0

40.0
800
10.7

10.3
1,200
16.0

—
(3,300)(44.0)

100.0
7,500
100.0

6,283

419

(1,714)

(177)

—

4,810

10.3

3.0

(2.5)

(1.0)

—

3.0

311

337

1,170

(124)

288

1,981

4.4

29.0

—

(9.4)

(8.0)

35.9

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Other

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2013

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

FY ended
March 2011
FY ended
March 2012
FY ended
March 2013
FY endingMarch 2014

Capitalexpenditures

Depreciation(Property,
plant andequipment)

R&D
expenditures

Interest-bearing
liabilities (endof fiscal year)

Financialaccountbalance

Number offull-time
employees(persons)

Full year

4,437

6,106

3,615

182,550(3,261)

4,845

Full year

8,105

5,730

4,012

173,208(3,006)

4,745

Full year

6,095

5,480

4,345

166,521(2,808)4,534

Full year(forecast)

5,660

4,982

(4) Cash flow (consolidated)(Millions of yen)
Cash flowfromoperatingactivities

FY ended
Full year
March 2011
FY ended
Full year
March 2012
FY ended
Full year
March 2013

Cash flowfrominvestment
activities

Cash flowfromfinancing
activities

Cash and cash equivalents at
end of fiscal year

10,416(2,959)(10,844)

16,58910,798(7,449)(4,393)

15,33916,040(4,404)(7,432)

19,636- 24 -