Member of Financial Accounting Standards Foundation

Financial Results for the 3rd Quarter of the Fiscal Year Ending March 31, 2017
February 7, 2017
Listed stock exchanges: Tokyo Stock Exchange
Company name: Unitika Ltd.
Code number: 3103
URL: http://www.unitika.co.jp/e/home.htm
Representative: Hiroyuki Shime, President and Chief Executive Officer
Contact: Masanori Onishi, General Manager of Accounting Department
TEL: +81-6-6281-5721
Expected submission of quarterly report: February 13, 2017
Expected commencement date for paying dividend: –Preparation of supplementary explanation documents for quarterly financial results: No
Holding of an analyst meeting for quarterly financial results: No(Figures rounded down to nearest million yen.)
1. Consolidated performance for 3rd quarter of fiscal year ending March 31, 2017 (April 1, 2016 to December 31, 2016)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales%(13.7)(7.2)

Millions of yen

Q3 of FY ending March 31, 2017
Q3 of FY ended March 31, 2016

(Note) Comprehensive income

Operating income

92,187
106,777

%
30.8
27.2

Millions of yen

9,220
7,049

Quarterly profit attributableto owners of parent

Ordinary income
%
63.8
2.7

Millions of yen

8,387
5,120

Millions of yen

6,285
6,161

%
2.0
—

Q3 of FY ending March 31, 2017: 5,219 million yen [-14.3%]
Q3 of FY ended March 31, 2016: 6,092 million yen [%]Quarterly net income per share

Diluted quarterly net income per share
Yen
9.59
9.38

Q3 of FY ending March 31, 2017
Q3 of FY ended March 31, 2016

Yen
4.86
4.87

(2) Consolidated financial situation

Q3 of FY ending March 31, 2017
FY ended March 31, 2016

(Reference) Shareholders’ equity

Total assets

Net assets

Millions of yen
209,583
219,957

Millions of yen
42,15837,936

Capital adequacy ratio
%
18.6
15.7

3rd quarter of fiscal year ending March 31, 2017: 38,955 million yen
Fiscal year ended March 31, 2016: 34,598 million yen

2. Dividend payment
Dividends per share
End of Q1

End of Q2Yen

FY ended March 31, 2016
FY ending March 31, 2017

End of Q3
Yen
0.00



0.00



Year end
Yen

FY ending March 31, 2017 (forecast)

Total
Yen
0.00

Yen
0.00

0.00

0.00

(Note) Revision of the latest dividend forecast: None
(Note) The above Dividend payment refers to dividends paid to the holders of common stock. For details of dividend payment to theholders of class shares (unlisted), the rights of which are different from those of common stock, please refer to Dividend payment
to the holders of class shares mentioned below.
3. Forecast of consolidated performance for fiscal year ending March 31, 2017 (April 1, 2016 to March 31, 2017)(% figures represent changes from same period in previous year.)Net sales

FY ending March 31, 2017

Operating income

Profit attributable toowners of parent

Ordinary income

Net income pershare

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

134,500(8.2)

11,700

12.0

9,000

31.9

7,000

1.0

10.41

(Note) Revision of the latest forecasts of operational results: NoneMember of Financial Accounting Standards Foundation* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries accompanying change of scope of
consolidation): Yes
New companies: ― (company name)
Excluded companies: 2 companies; (company name): Unitika Realty Co., Ltd. and Unimore Ltd.
(2) Adoption of special accounting methods for preparing quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
 Changes in accounting policies due to revisions of accounting standards: No Changes of accounting policies other than the above: No Changes in accounting estimates: No
 Retrospective restatement: No(4) Number of shares outstanding (Common stock) Number of shares outstanding at end of term (including treasury stock):3rd quarter of the fiscal year ending March 31, 2017: 577,523,433 sharesFiscal year ended March 31, 2016: 577,523,433 shares Number of treasury stocks at end of term
3rd quarter of the fiscal year ending March 31, 2017: 814,288 sharesFiscal year ended March 31, 2016: 805,686 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
3rd quarter of the fiscal year ending March 31, 2017: 576,714,949 shares
3rd quarter of the fiscal year ended March 31, 2016: 576,724,606 shares* Information on implementation of quarterly review procedures
The summary of financial statements is not subject to quarterly review procedures in accordance with the Financial Instruments andExchange Act. At the time of disclosing the summary of financial statements, the quarterly financial statement review procedures
have been implemented.
* Explanation on appropriate use of forecasts of performance and other special items
The forward-looking statements in this document concerning forecasting of performance etc. are based on currently available
information and assumptions considered by the company to be reasonable. Such statements are neither promises nor guarantees of
future performance. The actual performance may be significantly different from forecasts due to various factors. Concerning
assumptions used as a basis for forecasting business performance and precautionary statements when using the forecast of
performance, please refer to 1. Qualitative Information on Quarterly Results (3) Explanation of future forecast information including
forecast of consolidated performance on page 3 of the attachment.

Member of Financial Accounting Standards Foundation

Dividend payment to the holders of class shares
The breakdown of dividends per share related to class shares, the rights of which are different from those of common stock, is asfollows:
Annual dividends
End of Q1
Class A share

Yen

End of Q2

End of Q3

Yen

Yen

FY ended March 31, 2016

—

0.00

—

FY ending March 31, 2017

—

0.00

—

FY ending March 31, 2017 (forecast)Class B share

Yen

Yen

Yen

FY ended March 31, 2016

—

0.00

—

FY ending March 31, 2017

—

0.00

—

FY ending March 31, 2017 (forecast)Class C share

Yen

Yen

Yen

FY ended March 31, 2016

—

0.00

—

FY ending March 31, 2017

—

0.00

—

FY ending March 31, 2017 (forecast)Year end

Total

Yen

Yen

12,000.00

12,000.00

12,000.00

12,000.00

Yen

Yen

23,740.00

23,740.00

23,740.00

23,740.00

Yen

Yen

60,000.00

60,000.00

60,000.00

60,000.00

Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2017

 Table of contents for the attachment
1. Qualitative Information on Quarterly Results ....................................................................................... 2(1) Explanation of operational results .................................................................................................... 2(2) Explanation of financial situation ..................................................................................................... 3(3) Explanation of future forecast information including forecast of consolidated performance .............. 3
2. Matters concerning Summary Information (Notes) ............................................................................... 3(1) Changes in significant subsidiaries during the period ....................................................................... 3(2) Adoption of special accounting methods for preparing quarterly consolidated financial
statements ....................................................................................................................................... 3(3) Changes in accounting policies, changes in accounting estimates and retrospective restatements ...... 3(4) Additional information ..................................................................................................................... 3
3. Quarterly Financial Statements............................................................................................................. 4(1) Consolidated quarterly balance sheets .............................................................................................. 4(2) Consolidated quarterly statements of income and consolidated quarterly statements ofcomprehensive income .................................................................................................................... 6
Consolidated quarterly statements of income
Nine-month period ended December 31, 2016 ............................................................................. 6
Consolidated quarterly statements of comprehensive income
Nine-month period ended December 31, 2016 ............................................................................. 7(3) Notes on quarterly consolidated financial statements ........................................................................ 8(Notes on going concern assumption) .............................................................................................. 8(Notes on significant changes in shareholders’ equity) ..................................................................... 8(Segment information) .................................................................................................................... 8-1 -Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2017

1. Qualitative Information on Quarterly Results(1) Explanation of operational results
In the first nine-month period of the consolidated fiscal year under review (April 1, 2016 to December
31, 2016), the Japanese economy gradually recovered, with signs of improvement in corporate earnings
and in the employment and income environment. Meanwhile, the outlook for overseas economies
remained unclear due to no sign of a turnaround in the deceleration of growth in China and emerging
countries and growing economic uncertainty caused by Brexit (the exit of the United Kingdom from theEU) and the new U.S. Administration’s economic policies.
Under these circumstances, the Unitika Group endeavored to strengthen its foundation as a functional
materials manufacturer centering on the Polymers business and implement measures to improve
profitability with the aim of achieving its targets at an early stage under the growth strategy stated in its
new medium-term management plan, launched in May 2014.
Consequently, in the first nine-month period of the consolidated fiscal year under review, the Unitika
Group reported net sales of 92,187 million yen (down 13.7% year on year), operating income of 9,220
million yen (up 30.8% year on year), ordinary income of 8,387 million yen (up 63.8% year on year), andprofit attributable to owners of the parent company of 6,285 million yen (up 2.0% year on year).
Here is a summary of business by segment.
[Polymers]
In the Films business, the packaging sector saw sales in Japan continue to grow steadily in the third
quarter of the current fiscal year. In overseas markets, net sales grew due to an increase in the production
capacity of P.T. EMBLEM ASIA (EMBLEM ASIA), a subsidiary in Indonesia. In the industrial sector,
demand hit a plateau for information terminal applications, but sales of high-value-added products, suchas Uniamide, a heat-resistant polyamide film, expanded, contributing to the growth in earnings.
In the Resin business, high-value-added products, such as high-intensity metallic nano-composite nylon
resins using the Company’s proprietary method, found increased adoption in automobile applications.
Sales of elitel, a thermoplastic saturated copolymeric polyester resin, grew steadily, supported by demand
for solar cell applications in overseas markets. Sales of U-Polymer, the Company’s original polyarylate
resin, were also robust for information terminal applications in overseas markets. However, sales ofgeneral-purpose ester resins were sluggish.
In the Non-woven Fabrics business, the sales volume of polyester spunbond fabrics grew for industrial
material applications, but remained weak for other applications. In overseas markets, THAI UNITIKASPUNBOND CO., LTD. (TUSCO), a subsidiary in Thailand, saw sales in countries other than Thailand
increase steadily for industrial material applications. Meanwhile, sales of cotton spunlace continued to
grow in Japan for daily product applications, such as skin care goods. Export volumes also grew.
Consequently, the Polymers business posted operating income of 7,867 million yen (up 38.0% year-on-year)
on net sales of 40,829 million yen (down 2.3% year-on-year).
[Advanced Materials]
In the Glass Fibers business, the industrial materials sector showed strong sales in building-relatedmaterials, whereas IC cloth in the electronic materials sector suffered weak sales due to a lack of recovery
in demand for information terminal applications.
In the Glass Beads business, sales for reflective material applications remained weak to some customers,
while sales for road marking and industrial applications were robust. Earnings in general increased forvarious reasons including improvements in the product lineup.
In the Activated Carbon Fibers business, demand for mainstay water purifier applications recovered,
while demand for VOC removal and industrial filter applications remained strong.
Consequently, the Advanced Materials business posted operating income of 818 million yen (down 24.4%
year on year) on net sales of 8,832 million yen (down 1.1% year on year).
[Fibers and Textiles]
In the Industrial Materials business, the component ratio of high value-added products, such as composite
fibers, increased in the sales of ultra-high-strength polyester filament yarn, contributing to earnings
growth. In the short-fiber polyester business, earnings were secured in line with the Company’s initialplan due to efforts to expand sales of high-value-added products, although sales decreased substantially
due to the downsizing of the business associated with the structural reform the Company completed by
the previous year.
In the Garments, Lifestyle Materials and Bedding business, the uniform sector saw demand recovery forworking wear, while the women’s clothing sector achieved a sales increase through efforts to expand sales-2 -Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2017of raw fabrics and secondary products. Both sectors recorded steady earnings growth. On the other hand,sales of raw materials for sportswear and bedding goods applications and exports of denim remainedsluggish, leading to a decline in sales in the Garments, Lifestyle Materials and Bedding business.
Consequently, the Fibers and Textiles business posted operating income of 1,005 million yen (up 26.1%
year on year) on net sales of 39,866 million yen (down 17.0% year on year).
[Others]
The Others category posted an operating loss of 483 million yen (an operating loss of 555 million yen in
the same period of the previous year) on net sales of 2,659 million yen (down 66.8% year on year), due
to the effects of the transfer of shares, the liquidation of subsidiaries and the transfer of businesses
associated with the implementation of business portfolio restructuring measures.
(2) Explanation of financial situation
Total assets amounted to 209,583 million yen, down 10,374 million yen from the end of the previous
consolidated fiscal year. This was mainly due to a decrease in cash and deposits. Liabilities totaled
167,424 million yen, down 14,595 million yen from the end of the previous consolidated fiscal year. Thiswas primarily due to a decline in long-term loans payable. Net assets stood at 42,158 million yen, up
4,221 million yen from the end of the previous consolidated fiscal year. This was mainly owing to anincrease in retained earnings from booking profit attributable to owners of the parent company.
(3) Explanation of future forecast information including forecast of consolidated performance
The Unitika Group did not revise its full-year forecast of consolidated performance for the fiscal year
ending March 31, 2017 announced on November 9, 2016.
2. Matters concerning Summary Information (Notes)(1) Changes in significant subsidiaries during the period
Two subsidiaries, Unitika Realty Co., Ltd. and Unimore Ltd., were excluded from the scope of
consolidation because they were absorbed after the absorption-type merger implemented during the firstquarter of the consolidated fiscal year under review, in which the Company is a surviving company.
(2) Adoption of special accounting methods for preparing quarterly consolidated financial statements
Not applicable(3) Changes in accounting policies, changes in accounting estimates and retrospective restatements
Not applicable(4) Additional information(Application of the Implementation Guidance on the Recoverability of Deferred Tax Assets)
The Implementation Guidance on the Recoverability of Deferred Tax Assets (ASBJ Implementation
Guidance No. 26 issued on March 28, 2016) has been applied since the first quarter of the consolidated
fiscal year under review.

-3 -Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2017

3. Quarterly Consolidated Financial Statements(1) Consolidated quarterly balance sheets(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2016)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Land
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4 -Q3 of FY ending March 2017
(December 31, 2016)

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

33,04834,19627,5294,350(98)
99,027

66,86937,298104,168

66,81436,917103,732

1,714
1,714

2,066
2,066

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

4,786
(29)
4,757
110,555
209,583

Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2017

(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2016)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
A product repair reserve fund
Provision for business structure improvement
Provision for loss on anti-monopoly act
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for directors’ retirement benefits
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-5 -Q3 of FY ending March 2017
(December 31, 2016)

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

16,619
1,731
308
1,052
773
2,000
651
609
8,891
32,637

124,142
7
11,513
14,452150,116
182,020

108,956
4
11,633
14,193
134,787
167,424100
28,401
5,708(46)
34,164100
28,40010,996(46)
39,450

433

630

(203)
6,474
(2,662)(3,608)434
3,338
37,936219,957(44)
6,433(4,185)(3,329)(495)
3,202
42,158
209,583

Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2017(2) Consolidated quarterly statements of income and consolidated quarterly statements of comprehensive
income(Consolidated quarterly statements of income)(Nine-month period ended December 31, 2016)

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

Nine-month period
ended December 31, 2015
(April 1, 2015 to
December 31, 2015)
106,777
84,176
22,601
15,551
7,049(Unit: Millions of yen)
Nine-month period
ended December 31, 2016
(April 1, 2016 to
December 31, 2016)
92,187
68,523
23,664
14,443
9,220

41
82
—

52
74
369

12

17

603
739

638
1,153

1,790
878
2,668
5,120

1,501
484
1,985
8,387

1,206
375

196
—

43
1,625

—
196

340
609
—
89
1,039
5,706
120
(604)
(483)
6,190

432
231
609
20
1,293
7,291
964
(38)
926
6,365

28
6,161

80
6,285

Profit attributable to owners of parent-6 -Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2017

(Consolidated quarterly statements of comprehensive income)(Nine-month period ended December 31, 2016)

ProfitNine-month period ended
December 31, 2015
(April 1, 2015 to
December 31, 2015)
6,190(Unit: Millions of yen)
Nine-month period ended
December 31, 2016
(April 1, 2016 to
December 31, 2016)
6,365

145
53
(66)
(483)

197
160
(41)
(1,741)

254

279

(97)

(1,145)

6,092

5,219

6,078

5,355

13

(135)

Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans,
net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests-7 -Unitika Ltd. (3103)

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

Advanced Fibers &Materials Textiles

Total

Other
(Note 1)

Total

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

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

41,808
8,107

8,927
877

48,038623

98,773
9,608

8,003 106,777
885 10,493—(10,493)

106,777—

Total

49,915

9,804

48,661

108,3818,889 117,271(10,493)

106,777

Segment income (loss)
5,702
1,082
797
7,582
(555)
7,026
22
7,049
(Notes) 1. The Other category comprises business segments that are not included in reportable segments. It includes Environmental
business and Real Estate-related business and the like.
2. Adjustment of Segment income (loss) is attributable to the elimination of inter-segment transactions.
3. Segment income (loss) is adjusted with operating income in quarterly consolidated statements of income.

II. Nine-month period ended December 31, 2016 (April 1, 2016 to December 31, 2016)
1. Information on net sales, income or loss by reportable segment(Unit: Millions of yen)
Reportable segment
Polymers

Advanced Fibers &Materials Textiles

Total

Other
(Note 1)

Total

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

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

40,829
6,579

8,832
682

39,866708

89,527
7,970

2,659
860

92,187
8,830—(8,830)92,187—

Total

47,408

9,515

40,574

97,4973,520 101,018(8,830)92,187

Segment income (loss)
7,867
818
1,005
9,691
(483)
9,207
13
9,220
(Notes) 1. The Other category, which includes design, construction, and maintenance businesses of plant projects, does not qualify
as a reportable operating segment.
2. Adjustment of Segment income (loss) is attributable to the elimination of inter-segment transactions.
3. Segment income (loss) is adjusted with operating income in consolidated statements of income.

-8 -