Member of Financial Accounting Standards Foundation

Financial Results for the 1st Quarter of the Fiscal Year Ending March 31, 2014
August 5, 2013
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: August 9, 2013
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 1st quarter of fiscal year ending March 31, 2014 (April 1, 2013 to June 30, 2013)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales

Q1 of FY ending March 31, 2014
Q1 of FY ended March 31, 2013

(Note) Comprehensive income

Operating income%(1.7)(12.7)

Millions of yen

38,23338,883

Millions of yen

1,853
1,454

Ordinary income%
27.4(52.2)%
196.9(73.7)

Millions of yen

1,661
559

Quarterly net income
Millions of yen

1,446
59

%

(93.1)

Q1 of FY ending March 31, 2014: 2,057 million yen [164.7 %]Q1 of FY ended March 31, 2013: 777 million yen [(26.8%)]
Quarterly net income per share

Quarterly net income per share after full dilution
Yen

Yen
2.51
0.10

Q1 of FY ending March 31, 2014
Q1 of FY ended March 31, 2013(2) Consolidated financial situation
Total assets
Q1 of FY ending March 31, 2014
FY ended March 31, 2013

(Reference) Shareholders’ equity

Net assets

Millions of yen
261,609
255,054

Capital adequacy ratio

Millions of yen
23,37521,317%7.6
7.0

1st quarter of fiscal year ending March 31, 2014: 19,759 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




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

End of Q3
Yen
0.00
0.00

Year end
Yen

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

6-month period ending September 30,
2013 (accumulation)
FY ending March 31, 2014

77,500165,000

Operating income
%

1.8
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

3,000
7,500

29.4
35.9

1,600
4,000

227.9
3.8

900
2,000




1.56
3.47

Member of Financial Accounting Standards Foundation* Notes(1) Changes in significant subsidiaries during the period: 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):
1st 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
1st quarter of the fiscal year ending March 31, 2014: 768,761 sharesFiscal year ended March 31, 2013: 766,802 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
1st quarter of the fiscal year ending March 31, 2014: 576,755,443 shares
1st quarter of the fiscal year ended March 31, 2013: 575,501,163 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 1st 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
Three-month period ended June 30, 2013 ........................................................................................ 6
Consolidated quarterly statements of comprehensive income
Three-month period ended June 30, 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 1st quarter of fiscal year ending March 31, 2014

1. Qualitative Information on Quarterly Results(1) Explanation of Operational Results
In the first quarter of the fiscal year ending March 31, 2014 (April 1, 2013 to June 30, 2013), theJapanese economic outlook was still unclear, since concerns over the employment situation andemployees’ income were not eliminated, although the Japanese economy was heading for recovery
against the backdrop of expectations of the current government’s policies to pull the country out of
deflation, and there were also signs of an economic upturn, such as the improvement of the export
environment and the recovery of competitiveness of Japanese products against imported goods due tothe depreciation of the yen against the U.S. dollar. In such an environment, the Unitika Group reported
operating income of 1,853 million yen (up 27.4% year-on-year) on net sales of 38,233 million yen(down 1.7% year-on-year), because sales volume, mainly in the Polymers business, recovered in general.
Meanwhile ordinary income amounted to 1,661 million yen (up 196.9% year-on-year) and net income
totaled 1,446 million yen (net income of 59 million yen in the previous year), due to the recording of
non-operating income, such as foreign exchange gains, and extraordinary income, such as gain on salesof investment securities.
Here is an overview of the business results by segment.
[Polymers]
In the Films business, shipments to the packaging sector did not recover on a full scale, but demand
continued picking up, leading to a growth in sales volume. Meanwhile, shipments to the industrial
sector partly recovered, but the improvement of the market climate was slow. Earnings of the Films
business as a whole decreased, since it took time before the effect of the price revision to cope withrising raw material and fuel prices was fully seen.
In the Resin business, shipments of nylon for the automobile sector, one of the main fields, grewsteadily, and shipments of polyarylate resin for information terminal device applications and those of
ARROW BASE, an environmentally friendly water-based polyolefin cationic emulsion, which theCompany started marketing on a full scale in the previous term, also increased solidly.
In the Non-woven Fabrics business, earnings of polyester spunbond fabrics recovered, because the sales
volume for agriculture, daily product materials and civil engineering applications increased and the
profitability of the export business improved. In addition, sales of cotton spunlace grew steadily becauseof a recovery in demand from wet sheet applications.
Consequently, the Polymers business posted operating income of 1,879 million yen (up 9.7%
year-on-year) on net sales of 16,113 million yen (up 6.4% year-on-year).
[Advanced Materials]
In the Glass Fiber business, shipments for building and civil engineering refurbishment applications
grew steadily, while those of IC cloth for information terminal device applications increased solidly. In
the glass beads business, shipments for road marking applications and industrial use remained strong
due to a recovery of demand, while those for reflective materials applications were sluggish due to a
decline in exports to Europe. Meanwhile, shipments of activated carbon fiber were strong, because
demand from water purifier applications continued increasing and that from wastewater treatment andautomobile applications, which had been slow to recover, regained their momentum.
Consequently, the Advanced Materials business posted operating income of 411 million yen (up 101.0%
year-on-year) on net sales of 3,487 million yen (down 0.1% year-on-year).
[Fibers and Textiles]
In the Industrial Materials business, shipments of ultra-high strength polyester filament yarn for
construction and civil engineering applications did attain full-scale recovery, but in the short-fiber
polyester business, sales of differentiated binder fiber products expanded and the profitability of theexport business improved. The profitability of vinylon fiber did not improve, because the sales volume
decreased due to the inventory adjustment of vinylon span yarns for industrial material applications,although the effect of the cost reduction measures was seen in reinforced concrete applications, areplacement for asbestos.
In the Garments, Lifestyle Materials, and Bedding business, demand from the uniform field, which had
been steady till the previous term, entered an adjustment phase, while sales of functional materials inthe sporting clothing and the women’s clothing fields also lost some of their momentum. However,some subsidiaries including those overseas saw their profitability improve due to a recovery in themarket.
Consequently, the Fibers and Textiles business posted operating income of 0 million yen (down 98.9%-2 -Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2014

year-on-year) on net sales of 16,096 million yen (down 7.4% year-on-year).
[Others]
In the Healthcare & Amenity business, sales of health food and feeding stuffs were sluggish, while salesof functional dietary materials grew steadily due to expanded sales of food ingredients containing
L-arabinose and lactobionic acid. In the Medical business, sales expanded in the medical product field
because of a rise in the adoption of a new product in mainstay catheters for the treatment of circulatory
system diseases. In the biochemical field, sales of enzymes recovered, but those of clinical diagnostic
reagents were slightly weak due to inventory adjustment.
In the Real Estate business, sales of condominiums were in line with the budget.
Consequently, the Others category posted operating income of 194 million yen (up 30.7% year-on-year)
on net sales of 2,535 million yen (down 11.2% year-on-year).
(2) Explanation of financial situation
Total assets increased by 6,555 million yen from the end of the previous consolidated fiscal year to261,609 million yen, mainly due to a rise in accounts receivable-trade. Liabilities increased by 4,498
million yen from the end of the previous consolidated fiscal year to 238,234 million yen, mainly due toa rise in loans payable. Net assets increased by 2,057 million yen from the end of the previous
consolidated fiscal year to 23,375 million yen, mainly due to a rise in retained earnings.
(3) Explanation of future forecast information including forecast of consolidated performance
We revised the forecast of consolidated performance for the first six-month period of the fiscal year
ending March 31, 2014 announced on May 14, 2013. We did not revise the forecast of consolidated
performance for the fiscal year ending March 31, 2014. For detailed information, please refer to the―Notice on Revision of Consolidated Performance for the First Six-Month Period of the Fiscal YearEnding March 31, 2014‖ separately announced today.
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 a consensus has been formed among financial institutions withwhom the Group has concluded loan agreements as a result of their judgment that they refrain fromexercising the right to claim acceleration of the loan maturity, and such situation has remained unchangedin the first quarter of the current 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.

-3 -Unitika Ltd. (3103)

Financial results for 1st 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 -Q1 of FY ending March 2014
(June 30, 2013)

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

19,572
40,686
41,935
4,417(179)
106,432

103,163
45,265
148,428

103,200
45,956
149,157

14
800
815

13
890
904

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

5,446
(330)
5,115
155,177
261,609

Unitika Ltd. (3103)

Financial results for 1st 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 -Q1 of FY ending March 2014
(June 30, 2013)

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

20,88768,92633,512262
866
918
12,024
137,397

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

70,6708,081
26
22,057
100,836
238,234

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

26,298
4,385(10,529)(44)
20,110

114

156

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

5
2,979(3,492)(350)
3,615
23,375
261,609

Unitika Ltd. (3103)

Financial results for 1st 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)(Three-month period ended June 30, 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
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 investment 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 (loss)
Net income

Three-month period
ended June 30, 2012
(April 1, 2012 toJune 30, 2012)
38,88331,599
7,283
5,829
1,454
27
51
233
312

28
47
450
230
757

750
41
415
1,207
559

702
3
243
949
1,661

—
48
48

275
—
275

84
137
128
349
258

80
—
108
188
1,747

92
119
211
46
(13)
59

168
123
291
1,456
9
1,446



-6 -

(Unit: Millions of yen)Three-month period
ended June 30, 2013
(April 1, 2013 toJune 30, 2013)
38,23330,839
7,393
5,540
1,853

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2014

(Consolidated quarterly statements of comprehensive income)(Three-month period ended June 30, 2013)(Unit: Millions of yen)Three-month period ended
June 30, 2012
(April 1, 2012 to June 30, 2012)

Three-month period ended
June 30, 2013
(April 1, 2013 to June 30, 2013)

46

1,456

(23)
(19)
775
(2)

42
(1)
560
—

730
777

601
2,057

691

1,950

85

107

Income before minority interests
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
Quarterly comprehensive income(Comprehensive income attributable to)
Quarterly comprehensive income attributable toowners of the parent
Quarterly comprehensive income attributable tominority interests-7 -Unitika Ltd. (3103)

Financial results for 1st 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. Three-month period ended June 30, 2012 (April 1, 2012 to June 30, 2012)
1. Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment
Polymers

Advanced Fibers &Materials Textiles

Total

Other
(Note 1)

Total

Adjustment(Note 2)

Figure in quarterly
consolidated
statements ofincome(Note 3)

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

15,14853,489
217,39061

36,028
69

2,855
579

38,883
648

—
(648)

38,883—

Total

15,153

3,491

17,45236,0973,434

39,532(648)

38,883

Segment income
1,712
204
90
2,008
148
2,157
(702)
1,454
(Notes) 1. Other includes the Environmental Business, Medical Business, Health & Amenity Business, and Real Estate-related
Business.
2. Adjustment of (702) million yen for Segment income includes corporate expenses that are not allocated to each reportablesegment.
3. Segment income is adjusted with operating income in quarterly consolidated statements of income.

2. Information concerning goodwill, etc. by reportable segment.
(Significant gain on bargain purchase)
The Company posted a gain on bargain purchase in the Polymers business. This was because theacquisition cost of shares in Terabo Co., Ltd. that the Company additionally acquired fell below theamount of the minority interests that decreased due to the additional acquisition. For information,
the gain on bargain purchase amounted to 48 million yen in the first quarter of the fiscal year
ending March 31, 2014.
II. Three-month period ended June 30, 2013 (April 1, 2013 to June 30, 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

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

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

16,1134

3,487
16

16,09649

35,698
69

2,535
412

38,233
482

—
(482)

38,233—

Total

16,1183,504

16,14535,7682,947

38,715(482)

38,233

Segment income
1,879
411
0
2,292
194
2,487
(633)
1,853
(Notes) 1. Other includes the Environmental Business, Medical Business, Health & Amenity Business, and Real Estate-related
Business.
2. Adjustment of (633) million yen for Segment income includes corporate expenses that are not allocated to each reportablesegment.
3. Segment income is adjusted with operating income in quarterly consolidated statements of income.

-8 -