Member of Financial Accounting Standards Foundation

Financial Results for the 3rd Quarter of the Fiscal Year Ending March 31, 2014
February 6, 2014
Listed stock exchanges: Tokyo Stock Exchange
Company name: Unitika Ltd.
Code number: 3103
URL: http://www.unitika.co.jp/e/home.htm
Representative: Kenji Yasue, President and Chief Executive Officer
Contact: Shoji Ishikawa, General Manager of Accounting Department
TEL: +81-6-6281-5721
Expected submission of quarterly report: February 13, 2014
Expected commencement date for paying dividend: –Preparation of supplementary explanation documents for quarterly financial results: No
Holding of an analyst meeting for quarterly financial results: No(Figures rounded to nearest million yen.)
1. Consolidated performance for 3rd quarter of fiscal year ending March 31, 2014 (April 1, 2013 to December 31, 2013)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales

Q3 of FY ending March 31, 2014
Q3 of FY ended March 31, 2013

(Note) Comprehensive income

Operating income%
5.2(12.1)

Millions of yen

119,732
113,812

Ordinary income%
27.4(47.1)

Millions of yen

4,884
3,835

%
88.0
(50.1)

Millions of yen

3,658
1,946

Quarterly net income
Millions of yen

2,279
37

%
—
(98.4)

Q3 of FY ending March 31, 2014: 2,785 million yen [%]Q3 of FY ended March 31, 2013: -195 million yen [%]Quarterly net income per share

Quarterly net income per share after full dilution
Yen

Yen
3.95
0.06

Q3 of FY ending March 31, 2014
Q3 of FY ended March 31, 2013(2) Consolidated financial situation
Total assets
Q3 of FY ending March 31, 2014
FY ended March 31, 2013

(Reference) Shareholders’ equity

Net assets

Millions of yen
258,809
255,054

Capital adequacy ratio

Millions of yen
24,102
21,317%7.9
7.0

3rd quarter of fiscal year ending March 31, 2014: 20,420 million yen
Fiscal year ended March 31, 2013: 17,809 million yen

2. Dividend payment
Dividends per share
End of Q1

End of Q2Yen

FY ended March 31, 2013
FY ending March 31, 2014

End of Q3
Yen
0.00



0.00



Year end
Yen

FY ending March 31, 2014 (forecast)(Note) Revision of the latest dividend forecast: None

Annual
Yen
0.00

Yen
0.00

0.00

0.00

3. Forecast of consolidated performance for fiscal year ending March 31, 2014 (April 1, 2013 to March 31, 2014)(% figures represent changes from same period in previous year.)Net sales
Millions of yen

Operating income%

165,000
FY ending March 31, 2014
3.0
(Note) Revision of the latest forecasts of operational results: None

Ordinary income

Net income pershare

Net income

Millions of yen%

Millions of yen%

Millions of yen

%

Yen

7,500

35.9

4,000

3.8

2,000

―

3.47

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): No(2) Adoption of special accounting methods for preparing quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
 Changes in accounting policies due to revisions of accounting standards: No Changes of accounting policies other than the above: No Changes in accounting estimates: No
 Retrospective restatement: No(4) Number of shares outstanding (Common stock) Number of shares outstanding at end of term (including treasury stock):3rd quarter of the fiscal year ending March 31, 2014: 577,523,433 sharesFiscal year ended March 31, 2013: 577,523,433 shares Number of treasury stocks at end of term
3rd quarter of the fiscal year ending March 31, 2014: 779,008 sharesFiscal year ended March 31, 2013: 766,802 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
3rd quarter of the fiscal year ending March 31, 2014: 576,751,243 shares
3rd quarter of the fiscal year ended March 31, 2013: 576,361,394 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.

Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2014

 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
3. Critical events, etc., regarding the assumption of a going concern......................................................... 3
4. 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
Nine-month period ended December 31, 2013 ............................................................................. 6
Consolidated quarterly statements of comprehensive income
Nine-month period ended December 31, 2013 ............................................................................. 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 3rd quarter of fiscal year ending March 31, 2014

1. Qualitative Information on Quarterly Results(1) Explanation of operational results
In the third quarter of the fiscal year ending March 31, 2014 (April 1, 2013 to December 31, 2013), theJapanese economy gradually recovered due to a upturn of exports and a pickup in personal consumption,
supported by the government’s active economic stimulus measures and the Bank of Japan’s monetary
relaxation policy. However, there were still downside risks to Japan’s economy, such as soaring raw
material and fuel prices caused by the fluctuation of foreign exchange rates, an economic slowdown inemerging countries, and declines in consumer confidence due to the scheduled consumption tax
increase in April 2014.
Under these circumstances, the Unitika Group reported operating income of 4,884 million yen (up27.4% year-on-year) on net sales of 119,732 million yen (up 5.2% year-on-year) because sales volumes,on the whole, recovered in the Polymers business and the Others category. Ordinary income totaled
3,658 million yen (up 88.0% year-on-year) and net income amounted to 2,279 million yen (net incomeof 37 million yen in the previous year), due to an increase in non-operating income, such as foreignexchange gains.
Here is an overview of the business results by segment.
[Polymers]
In the Films business, demand continued to recover gradually in the packaging sector, resulting in a risein sales volumes. However, sales volumes decreased in the industrial sector due to lingering weak
demand for electrical and electronics equipment applications. In addition, the penetration of the pricerevision took longer and raw material and fuel prices rose higher due to the further depreciation of theyen. Consequently, profits decreased in the Films business.
In the Resins business, sales of polyarylate resin for automobile and information terminal device
applications grew solidly, while shipments of nylon for the automobile applications also increased
steadily. In addition, the Company accelerated the promotion of a new polyester material for directblow bottle applications. As a result, profits increased in the Resins business.
In the Non-woven Fabrics business, earnings of polyester spunbond fabrics increased because sales
volumes for agriculture, daily product materials, and civil engineering applications grew and the
profitability of the export business improved. In addition, sales of cotton spunlace for wet sheet
applications remained solid.
Consequently, the Polymers business posted operating income of 4,764 million yen (down 6.3%
year-on-year) on net sales of 48,652 million yen (up 6.2% year-on-year).
[Advanced Materials]
In the Glass Fibers business, shipments for building and civil engineering applications increased
steadily in the industrial material sector. In the electronic material sector, sales for information terminal
device applications grew, improving profitability. In the Glass Beads business, sales for road marking
applications jumped because of a recovery of demand, while in shipments for reflective materials
applications, exports to the European market continued to be sluggish. Meanwhile, in the ActivatedCarbon Fibers business, shipments for water purifiers applications, mainly those built into faucets, andautomobiles applications continued to be strong.
Consequently, the Advanced Materials business posted operating income of 1,253 million yen (up64.2% year-on-year) on net sales of 10,741 million yen (up 1.9% year-on-year).
[Fibers and Textiles]
In the Industrial Materials business, earnings of ultra-high strength polyester filament yarn did not
improve yet because intensifying competition continued in the field of building and civil engineering,its main applications. Meanwhile, in the short-fiber polyester business, sales of binder fiber products, itsdifferentiated products, expanded and the profitability of exports also improved. Sales volumes ofvinylon fiber, a replacement for asbestos, increased due to expanded sales to emerging countries,
although demand remained sluggish in the European market.
In the Garments, Lifestyle Materials, and Bedding business, earnings decreased in the Japanese market,
including the uniform field, because overseas procurement costs increased, although exports, including
denims, grew steadily.
Consequently, the Fibers and Textiles business posted operating loss of 233 million yen (operating lossof 307 million yen in the same period of the previous year) on net sales of 49,015 million yen (down
0.3% year-on-year).

-2 -Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2014

[Others]
In the Healthcare & Amenity business, sales of functional dietary materials, such as lactobionic acid,
were solid, while those of health foods and feed materials were sluggish. In the Medical business,earnings increased because of steady sales of its mainstay product, catheters for the treatment ofcirculatory system diseases and growing sales of new ―chitin‖ products in the medical product field, andexpanding sales of clinical diagnostic reagents in the biochemical field.
In the Real Estate business, earnings increased because sales of condominiums remained solid.
Consequently, the Others category posted operating income of 1,008 million yen (up 132.6%
year-on-year) on net sales of 11,323 million yen (up 35.8% year-on-year).
(2) Explanation of financial situation
Total assets increased by 3,755 million yen from the end of the previous consolidated fiscal year to258,809 million yen. This was mainly due to an increase in notes and accounts receivable-trade andinventory despite a decrease in cash and deposits. Liabilities grew by 971 million yen from the end of
the previous consolidated fiscal year to 234,707 million yen. This was mainly due to an increase inloans payable. Net assets increased by 2,784 million yen from the end of the previous consolidated
fiscal year to 24,102 million yen, mainly as a result of an increase in retained earnings.
(3) Explanation of future forecast information including forecast of consolidated performance
Though non-operating income increased due to foreign exchange gains during the third quarter of the
fiscal year ending March 31, 2014, we did not revise the forecast of consolidated performance for the
fiscal year ending March 31, 2014 because the business outlook remains unclear.
If we judge that we need to revise the forecast in the future, we will immediately announce this.
2. Matters concerning Summary Information (Notes)(1) Changes in significant subsidiaries during the period
Not applicable(2) Adoption of special accounting methods for preparing quarterly consolidated financial statements
Not applicable(3) Changes in accounting policies, changes in accounting estimates and retrospective restatements
Not applicable
3. Critical events, etc., regarding the assumption of a going concern
The Unitika Group’s shareholders’ equity amounted to 18,663 million yen in the previous consolidated
fiscal year, because the Group posted a net loss of 10,875 million yen for the previous consolidated fiscal
year. Consequently, the Unitika Group was in violation of restrictive financial covenants (criteria forshareholders’ equity on the last day of the fiscal year or the second quarter of the fiscal year) on some of
the long-term loans (outstanding balance of 4,600 million yen at the end of the previous consolidated
fiscal year). However, management does not consider that there will be any critical uncertainties regarding
the assumption of a going concern, since the Group fully repaid such long-term loans in the first six-month
period of the fiscal year ending March 31, 2014.
In order to bring about a radical change in earnings, the Unitika Group continues promoting the revampingof 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 its business performance around.

-3 -Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2014

4. Quarterly Financial Statements(1) Consolidated quarterly balance sheets(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2013)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets-4 -Q3 of FY ending March 2014
(December 31, 2013)

19,66836,33939,7764,660(170)
100,274

15,58340,652
43,182
4,381(175)
103,624

103,163
45,265
148,428

103,019
46,137
149,157

14
800
815

11
1,036
1,047

5,860
(325)
5,535
154,779
255,054

5,263
(283)
4,979
155,184
258,809

Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2014

(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2013)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision for business structure improvement
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Provision for directors’ retirement benefits
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets-5 -Q3 of FY ending March 2014
(December 31, 2013)

22,06768,43332,925
756
1,567
1,087
11,724
138,562

21,267
68,52931,961810
870
524
12,470136,435

65,162
7,752
53
22,205
95,173
233,736

67,3488,683
26
22,213
98,272
234,707

26,298
4,385(11,976)(44)
18,663

26,298
4,385(9,696)(44)
20,942

114

233

6
2,979
(3,954)(854)
3,508
21,317
255,054

3
2,979(3,739)(521)
3,681
24,102258,809

Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2014

(2) Consolidated quarterly statements of income and consolidated quarterly statements of comprehensive
income(Consolidated quarterly statements of income)(Nine-month period ended December 31, 2013)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gains
Equity in earnings of affiliates
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 sales of investment securities
Dividends from liquidation of securities
Gain on bargain purchaseTotal extraordinary income
Extraordinary loss
Loss on disposal of noncurrent assets
Loss on valuation of investment securities
Other
Total extraordinary loss
Income before income taxes and minority
interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income

Nine-month period
ended December 31, 2012
(April 1, 2012 to
December 31, 2012)
113,81292,333
21,47917,643
3,835(Unit: Millions of yen)
Nine-month period
ended December 31, 2013
(April 1, 2013 to
December 31, 2013)
119,732
97,342
22,39017,505
4,884

85
90
202
—
575
953

83
79
1,133
10
566
1,872

2,301
53
487
2,843
1,946

2,241
—
857
3,099
3,658

816
—
—
48
865

—
275
186
—
462

348
151
458
959
1,852

361
—
430
792
3,328

399
1,399
1,798
54
16
37

817
182
1,000
2,328
48
2,279

-6 -

Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2014

(Consolidated quarterly statements of comprehensive income)(Nine-month period ended December 31, 2013)

Income before minority interests

Nine-month period ended
December 31, 2012
(April 1, 2012 to
December 31, 2012)
54(Unit: Millions of yen)
Nine-month period ended
December 31, 2013
(April 1, 2013 to
December 31, 2013)
2,328

26
(6)
(263)
(5)

119
(2)
340
—

(249)
(195)

456
2,785

(180)

2,611

(14)

173

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

Financial results for 3rd quarter of fiscal year ending March 31, 2014

(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. Nine-month period ended December 31, 2012 (April 1, 2012 to December 31, 2012)
Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment
Polymers

Advanced Fibers &Materials Textiles

Total

Other
(Note 1)

Total

Adjustment(Note 2)

Figure in quarterly
consolidated
statements ofincome(Note 3)

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

45,79318

10,53841

49,142
170

105,474230

8,337 113,812
1,722
1,953

—
(1,953)

113,812—

Total

45,812

10,57949,313

105,705

10,060 115,766(1,953)

113,812Segment income (loss)
5,087
763
(307)
5,542
433
5,976
(2,141)
3,835(Notes) 1. Other includes the Environmental Business, Medical Business, Health & Amenity Business, and Real Estate-related
Business.
2. Adjustment of (2,141) million yen for Segment income (loss) includes corporate expenses that are not allocated to eachreportable segment.
3. Segment income (loss) is adjusted with operating income in quarterly consolidated statements of income.

II. Nine-month period ended December 31, 2013 (April 1, 2013 to December 31, 2013)
Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment
Polymers

Advanced Fibers &Materials Textiles

Total

Other
(Note 1)

Total

Adjustment(Note 2)

Figure in quarterly
consolidated
statements ofincome(Note 3)

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

48,652
17

10,741
46

49,015
197

108,409261

11,323 119,732
1,219
1,481

—
(1,481)

119,732—

Total

48,67010,78749,213

108,671

12,543 121,214(1,481)

119,732

Segment income (loss)
4,764
1,253
(233)
5,784
1,008
6,793
(1,908)4,884(Notes) 1. Other includes the Environmental Business, Medical Business, Health & Amenity Business, and Real Estate-related
Business.
2. Adjustment of (1,908) million yen for Segment income (loss) includes corporate expenses that are not allocated to eachreportable segment.
3. Segment income (loss) is adjusted with operating income in quarterly consolidated statements of income.

-8 -