Member of Financial Accounting Standards Foundation

Financial Results for the 1st Six-Month Period of the Fiscal YearEnding March 31, 2009
November 7, 2008

Company name: Unitika Ltd.
Code number: 3103
URL: http://www.unitika.co.jp/e/home.htm
Representative: Otofumi Onishi, President and Chief Executive Officer
Contact: Kazuo Otsuki, General Manager of Accounting Department
Expected submission of quarterly report: November 13, 2008

Listed stock exchange: Tokyo Stock Exchange,
Osaka Securities Exchange
TEL +81-6-6281-5721(Figures less than one million yen were omitted.)

1. Consolidated performance for 1st six-month period of fiscal year ending March 31, 2009
(April 1, 2008 to September 30, 2008)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)

1st six-month period of FY ending March 31, 2009
1st six-month period of FY ended March 31, 2008

Net sales
Operating income Ordinary income
Millions% Millions% Millions%of yenof yenof yen107,853 ⎯2,559 ⎯
1,236 ⎯
111,695
7.3
4,456 (16.8)
3,132 (24.9)
Net income per share
Yen
1.10
3.63

1st six-month period of FY ending March 31, 2009
1st six-month period of FY ended March 31, 2008

Net income
Millions%of yen521 ⎯1,728 (14.1)

Net income per shareafter full dilution
Yen⎯⎯(2) Consolidated financial situation
Capital adequacy
Net assets per
ratio
share
Millions of yen
Millions of yen%
Yen
1st six-month period of FY ending March 31, 2009
305,071
36,337
10.7
68.38
Fiscal year ended March 31, 2008
309,043
38,37810.9
70.67(Reference) Shareholders’ equity
1st six-month period of fiscal year ending March 31, 2009: 32,516 million yen
Fiscal year ended March 31, 2008: 33,611 million yen
Total assets

Net assets

2. Dividend payment(Base date)

End of Q1Yen
FY ended March 31, 2008⎯
FY ending March 31, 2009⎯
FY ending March 31, 2009 (forecast)⎯⎯(Note) Revision of dividend forecast for the current quarter: No

Dividend per share
End of Q2
End of Q3
Year end
Yen
Yen
Yen
0.00
2.00
⎯
0.00
⎯⎯
⎯⎯
2.00
⎯⎯
⎯

Annual
Yen
2.00
⎯⎯
2.00

3. Forecast of consolidated performance for fiscal year ending March 31, 2009
(April 1, 2008 to March 31, 2009)(Percentages represent changes from same period in previous year.)
Net income
Net sales
Operating income Ordinary income
Net income
per share
Millions% Millions% Millions% Millions%
Yenof yenof yenof yenof yenFiscal year ending March 31, 2009
233,000 (0.7)
9,000 (22.1)
5,500 (31.4)
1,000 (35.5)
2.10(Note) Revision of forecast of consolidated performance for the current quarter: No-1-

4. Others(1) Changes in significant subsidiaries during the term (changes in specified subsidiaries accompanying
change of scope of consolidation): No(2) Adoption of simplified accounting method and special accounting practices for preparation of quarterly
consolidated financial statements: Yes(Note) For details, please refer to [Qualitative information and financial statements] and “4. Others” onpage 6.
(3) Changes in accounting principles, procedures and presentations for preparation of quarterly
consolidated financial statements (those included in “Changes in Important Matters for Preparation of
Quarterly Consolidated Financial Statements”)
c Changes associated with revision in accounting standards: Yesd Other changes: Yes(Note) For details, please refer to [Qualitative information and financial statements] and “4. Others”
on page 6.
(4) Number of shares outstanding (Common stock)c Number of shares outstanding at end of term (including treasury stock):
2nd quarter of the fiscal year ending March 31, 2009: 475,969,000 sharesFiscal year ended March 31, 2008:
475,969,000 sharesd Number of treasury stocks at end of term
2nd quarter of the fiscal year ending March 31, 2009: 414,646 sharesFiscal year ended March 31, 2008:
393,124 shares
e Average number of shares outstanding during the term (quarterly consolidated accumulated period)
2nd quarter of the fiscal year ending March 31, 2009: 475,566,387 shares
2nd quarter of the fiscal year ended March 31, 2008: 475,607,818 shares* Explanation on appropriate use of forecasts of performance and other special items
1. The forward-looking statements in this document concerning the forecast of performance for the fiscal
year ending March 31, 2009 are based on currently available information and assumptions considered by
the company to be reasonable. The actual performance may be significantly different from the forecast
due to various factors. For the forecast of performance, please refer to [Qualitative information andfinancial statements] and “3. Qualitative information on the forecast of consolidated performance” onpage 5.
2. Effective from the fiscal year ending March 31, 2009, “Accounting Standard for Quarterly Financial
Statements” (ASBJ Statement No. 12) and “Implementation Guidance for Accounting Standards for
Quarterly Financial Statements” (ASBJ Guidance No.14) have been applied. The quarterly consolidated
financial statements were prepared in accordance with “Regulations for Quarterly Consolidated Financial
Statements.”-2-

Unitika Ltd. (3103)

Financial results for the 1st six-month period of fiscal year ending March 31, 2009

[Qualitative information and financial statements]
1. Qualitative information on consolidated performance
In the first six-month period of the fiscal year ending March 31, 2009, Japan’s economic outlook
worsened along with deteriorating corporate earnings caused by skyrocketing resource prices, falling
consumer spending caused by the increased cost of living, economic slowdown in U.S. and Europe, aseries of failures and consolidations of U.S. financial institutions including stock brokers in the end of theterm, and subsequent instability in financial and stock markets.
Under these conditions, the Unitika Group implemented measures based on the Group’s medium-term(three-year) plan, “New Progress (NP)-8,” which will end this fiscal year, and tried to revise its productprices continuously. However, the Company saw its sales and income decrease, mainly in environmental
business and fibers & textiles business, due to greater-than-expected effects from rising material prices
such as petrochemical materials and fuels. Consequently, the Company reported disappointing results forthe first six-month period. The results fell short of the forecast: net sales of 107,853 million yen (adecrease of 3,841 million yen compared with the same period last year), operating income of 2,559
million yen (a decrease of 1,896 million yen), ordinary income of 1,236 million yen (a decrease of 1,896
million yen) and net income of 521 million yen (a decrease of 1,206 million yen).
Here is a summary of business by segment.
* Since accounting standards for preparation of quarterly consolidated financial statements are applied
from the current fiscal year, the amounts for the same period last year are indicated as reference in thequalitative information on business performance.
[Polymers]
In the polymers business as a whole, the Company worked hard to secure profitability by revising its
product prices continuously as well as implementing cost-cutting measures, since a further rise in raw
material and fuel prices cut into profits.
In the film business, sales of nylon film were sluggish in the domestic market, but the price revision was
gradually accepted and profitability improved in overseas subsidiaries. In the polyester film business, total
sales volumes increased due to a growth of differentiated film in the field of packaging, althoughinventory adjustment started in the industrial field such as household appliances and electronics industries.
As a result, the Company saw sales and income increase over the same period last year in the polymers
business. The cost reduction efforts also contributed. In the resin business, demand for nylon resin
decreased due to production cutback in the automobile-related industry, but shipment of polyarylate resin,“U polymer,” and polyester resin were steady. As a result, sales increased and income remained flat in theresin business. In the nonwoven fabrics business, shipment of spunbond was comparatively firm forgeneral household materials and carpets use, but demand from the civil engineering, construction andautomobile industries was weak and profitability worsened due to slightly delayed price revision.
Shipment of cotton spunlace remained strong due to stable demand from mainly toiletry products and theprice revision was gradually accepted. As a result, sales remained flat, but income decreased in the
nonwoven fabrics business. The Company continued to promote the use of biomass plastic“TERRAMAC” in the following four fields: film, resin, nonwoven fabrics and textile. Thanks to ourefforts, “TERRAMAC” has been adopted in beds and bedding for European market, various
miscellaneous goods and heat-resistant durable plastic. With the world’s fastest crystallization-promoting
technology, the Company has been successful in significantly reducing the molding cycle time andproduction costs.
As a result, the polymers business posted an operating income of 3,464 million yen (an increase of 459
million yen over the same period last year) on net sales of 38,081 million yen (an increase of 3,388 million
yen).

-3-

Unitika Ltd. (3103)

Financial results for the 1st six-month period of fiscal year ending March 31, 2009

[Environmental Business/Advanced Materials]
In the environmental business, net sales increased along with progress of construction works, mainly
waste disposal treatment projects won by the Company, but a decline in public works by governments andintensifying competition squeezed the profit margin and the Company had a hard time in maintenanceservice and sales of chemical products. As a result, both net sales and income decreased in theenvironmental business. In the advanced materials business, shipment of glass fibers for industrial
materials use was slow due to a decline in demand from construction and engineering works. Shipment of
IC cloth was also sluggish due to the worsening market condition in the electronic component industry.
Shipment of glass beads was strong for industrial use and reflective materials use (for export) andshipment of activated carbon fiber was steady for air purification use and liquid-waste purification use. As
a result, net sales slightly decreased while income diminished in the advanced materials business.
Consequently, the environmental business/advanced materials business posted an operating income of 203
million yen (a decrease of 498 million yen over the same period last year) on net sales of 14,373 million
yen (a decrease of 98 million yen).
[Fibers & Textiles]
In the synthetic fiber business, in addition to deteriorating profitability caused by soaring raw material andfuel prices, demand declined over a wide range of industrial materials including construction, engineering
works and automobile due to sluggish demand along with worsening business sentiment. Shipment ofnylon fibers and long staple and short-fiber polyester also remained weak. In the vinylon fiber business,
export of vinylon fiber was robust for reinforced concrete use as a replacement of asbestos, but in thedomestic market shipment of vinylon fiber was sluggish for engineering works and building material use.
In the natural fiber business, sales were sluggish as a whole. In the uniform business, in particular, theCompany saw shipment decrease greatly due to the deteriorating market condition and cost pressures
mounted due to production adjustment at its factory to reduce inventories. Furthermore, skyrocketing raw
material and fuel prices also depressed earnings.
Consequently, the fibers & textiles business posted an operating loss of 228 million yen (operating incomeof 696 million yen in the same period last year) on net sales of 47,622 million yen (a decrease of 4,187
million yen over the same period last year).
[Health & Amenity, Others]
In the health & amenity, others business, net sales decreased due to a decline in Hanabiratake (cauliflower
fungus)-related health food, but profitability improved due to steady shipment of functional foodingredients such as ceramid and arabinose, which large customers adopt for their main products. In the
medical business, both sales and income decreased due to the revision in pharmaceutical prices for
medical materials, but shipment of new products such as circulatory system catheters and enzymes
increased. In other businesses, earnings from the real estate business decreased.
Consequently, the health & amenity, others business posted an operating income of 263 million yen (adecrease of 823 million yen over the same period last year) on net sales of 7,776 million yen (a decreaseof 2,943 million yen).

-4-

Unitika Ltd. (3103)

Financial results for the 1st six-month period of fiscal year ending March 31, 2009

2. Qualitative information on consolidated financial positions
Total assets amounted to 305,071 million yen, a decrease of 3,971 million yen, compared with the end of
the previous fiscal year. This is mainly due to decrease in notes and accounts receivable-trade. Liabilities
totaled 268,734 million yen, a decrease of 1,931 million yen, compared with the end of the previous fiscal
year. This is mainly due to decrease in notes and accounts payable-trade. Net assets amounted to 36,337
million yen, a decrease of 2,040 million yen, compared with the end of the previous fiscal year. This ismainly due to a decrease in retained earnings caused by dividend payment, reversal of revaluation reserve
for land in some overseas subsidiaries caused by unification of accounting procedures in overseas
subsidiaries, and a decrease in minority interests caused by additional purchases of subsidiaries’ equities.
Here is a summary of the cash flows situation.
(Net cash provided by [used in] operating activities)
Net cash provided by operating activities amounted to 4,011 million yen due to cash inflow fromdepreciation and a decrease in notes and accounts receivable-trade during the first six-month period of the
fiscal year ending March 31, 2009.
(Net cash provided by [used in] investment activities)
Net cash used in investment activities amounted to 3,960 million yen due to capital expenditures of 3,841
million yen during the first six-month period of the fiscal year ending March 31, 2009.
(Net cash provided by [used in] financing activities)
Net cash used in financing activities amounted to 1,827 million yen due to reduction of interest-bearing
liability and dividend payment during the first six-month period of the fiscal year ending March 31, 2009.
As a result, cash and cash equivalents at the end of the first six-month period of the fiscal year ending
March 31, 2009 amounted to 11,487 million yen, a decline of 1,722 million yen, compared with the end of
the previous fiscal year.
3. Qualitative information on the forecast of consolidated performance
Rising resource prices, falling consumer spending, and destabilized global financial and stock markets
have further heightened economic uncertainty. Under this environment, the company’s profitability,
mainly in environmental business and fibers & textiles business, is likely to continue to deteriorate, due tosoaring raw material and fuel prices and economic slowdown. Taking these factors into consideration, theCompany forecasts net sales of 233,000 million yen, operating income of 9,000 million yen, ordinary
income of 5,500 million yen and net income of 1,000 million yen for the full-year ending March 31, 2009
(on consolidated basis).

-5-Unitika Ltd. (3103)

Financial results for the 1st six-month period of fiscal year ending March 31, 2009

4. Others(1) Changes in significant subsidiaries during the term (changes in specified subsidiaries accompanying
change of scope of consolidation):
Not applicable(2) Adoption of simplified accounting method and special accounting practices for preparation of quarterly
consolidated financial statements:
In computing corporate income taxes, some consolidated subsidiaries took only major items into
account in terms of additions and deductions for the income and tax credits.
(3) Changes in accounting principles, procedures and presentations for preparation of quarterly
consolidated financial statementsc Effective from the fiscal year ending March 31, 2009, “Accounting Standard for Quarterly
Financial Statements” (ASBJ Statement No. 12) and “Implementation Guidance for AccountingStandards for Quarterly Financial Statements” (ASBJ Guidance No.14) have been applied. The
quarterly consolidated financial statements were prepared in accordance with “Regulations for
Quarterly Consolidated Financial Statements.”
d Effective from the first quarter of the consolidated fiscal year ending March 31, 2009, “Practical
Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated
Financial Statements” (ASBJ PITF No. 18 on May 17, 2006) has been applied. Accordingly, somerevisions were made to the consolidated accounts, as necessary. Consequently, total assets and net
assets as of the end of the second quarter of the consolidated fiscal year decreased by 550 million
yen and 629 million yen, respectively, from those obtained by the previous method. There wasonly a minor impact on operating income, ordinary income and net income before income taxes forthe current first six-month period.
e Finance lease transactions without title transfer were formerly accounted for in accordance with themethod conforming to ordinary rental transactions. “Accounting Standard for Lease Transactions”(ASBJ Statement No.13 [Business Accounting Council, the First Committee on June 17, 1993]
revised on March 30, 2007) and “Guidance on Accounting Standard for Lease Transactions”(ASBJ Guidance No. 16 [The Japanese Institute of Certified Public Accountants, Committee of
Accounting System on January 18, 1994] revised on March 30, 2007) have become applicable tothe preparation of quarterly consolidated financial statements for consolidated fiscal years
commencing on and after April 1, 2008. Effective from the first quarter of the consolidated fiscal
year ending March 31, 2009, these standards have been applied and finance lease transactions
without title transfer were accounted for in a similar manner with ordinary sale and purchasetransactions. Leased assets related to finance lease transactions without title transfer are
depreciated on a straight-line basis, with the lease periods as their useful lives and no residual
value. This revision has no impact on operating income, ordinary income and net income before
income taxes for the current first six-month period.
(Additional information)f The company revised its employees’ severance payment plan on April 1, 2008, shifting part of
future payment of pension benefits to the defined contribution plan from the defined benefit plan.
Consequently, past service liabilities (reduction of liabilities) of 652 million yen were incurred.
g Taking advantage of the revision of ministerial ordinances on useful life, the company and some ofits consolidated subsidiaries reviewed use of their assets and shortened useful life of somemachines and equipment from ten years to seven years in the first quarter of the fiscal year ending
March 31, 2009. There was only a minor impact on operating income, ordinary income and net
income before income taxes for the current first six-month period from the revision.

-6-Unitika Ltd. (3103)

Financial results for the 1st six-month period of fiscal year ending March 31, 2009

5. Quarterly financial statements(1) Consolidated quarterly balance sheets

End of Q2 of FY
ending March 2009
(September 30, 2008)(Unit: Millions of yen)
Condensed
consolidated balance
sheet for previous FY(March 31, 2008)

12,28543,664
39,413
20,233
4,920
7,781
(92)

13,04550,03939,171
18,167
4,883
8,536
(65)

128,206

133,779

106,632
59,081

107,382
56,629165,713

164,012

471
896

554
944

1,367

1,498

10,637(852)

10,580(826)

9,784
176,865
305,071

9,753
175,264
309,043

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Land
Other (net value)
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets-7-

Unitika Ltd. (3103)

Financial results for the 1st six-month period of fiscal year ending March 31, 2009

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds
Income taxes payable
Provision for bonuses
Provision for warranties for completed construction
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Provision for retirement benefits
Provision for directors’ retirement benefits
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets-8-

End of Q2 of FY
ending March 2009
(September 30, 2008)(Unit: Millions of yen)
Condensed
consolidated balance
sheet for previous FY(March 31, 2008)

34,38871,552
31,616
400
534
2,093
23
18,41838,38572,27356,489
400
952
2,265
116
15,290159,027

186,172600
88,3203,901
342
16,542800
62,823
3,483
408
16,977

109,706

84,492

268,734

270,665

23,798
1,661
6,683
(45)

23,798
1,661
7,196
(43)

32,09732,612

(127)
(2)
2,914
(2,365)

(120)
(11)
3,484
(2,354)

418

998

3,821

4,767

36,33738,378305,071309,043

Unitika Ltd. (3103)

Financial results for the 1st six-month period of fiscal year ending March 31, 2009

(2) Consolidated quarterly statements of income(1st six-month period ended September 30, 2008)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other personal expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Total extraordinary income
Extraordinary losses
Loss on disposal of noncurrent assets
Loss on valuation of investment securities
Business structure improvement expenses
Other
Total extraordinary losses
Quarterly net loss before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Minority interests in income
Quarterly net income(Unit: Millions of yen)
1st six-month period ended
September 30, 2008
(April 1, 2008 to
September 30, 2008)
107,853
89,70618,147
15,587
2,559
131
84
68
1,487
1,772
1,944
599
551
3,095
1,236
32
32
255
318
745
378
1,697
(429)
357
(1,373)(1,016)
65
521

-9-

Unitika Ltd. (3103)

Financial results for the 1st six-month period of fiscal year ending March 31, 2009

(3) Consolidated quarterly statements of cash flows(Unit: Millions of yen)
1st six-month period ended
September 30, 2008
(April 1, 2008 to
September 30, 2008)
Net cash provided by (used in) operating activities
Quarterly net loss before income taxes
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Interest expenses
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other
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) investment 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 cash provided by (used in) investment 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
Redemption of bonds
Cash dividends paid
Other
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 end of period- 10 -

(429)
3,494
97
1,944
6,545
(2,117)(4,081)
973
6,426
226
(1,947)
(693)
4,011
36
(12)
1
(3,841)210(354)(3,960)(1,211)
42,114(41,326)
(200)
(935)
(268)
(1,827)54(1,722)
13,20911,487

Unitika Ltd. (3103)

Financial results for the 1st six-month period of fiscal year ending March 31, 2009

Effective from the fiscal year ending March 31, 2009, “Accounting Standard for Quarterly Financial
Statements” (ASBJ Statement No. 12) and “Implementation Guidance for Accounting Standards for
Quarterly Financial Statements” (ASBJ Guidance No.14) have been applied. The company’s quarterly
consolidated financial statements were prepared in accordance with “Regulations for Quarterly
Consolidated Financial Statements.”(4) Notes on going concern assumption
Not applicable(5) Segment informationa. Segment information by business1st six-month period ended September 30, 2008 (April 1, 2008 to September 30, 2008)(Unit: Millions of yen)
Polymers

Environmental
Business/
Advanced
Materials

Net sales(1) Net sales to outside
customers(2) Inter-segment sales
or transfers

38,081

14,373

1,761

382

1,248

1,952

Total

39,843

14,75548,870

9,728

3,464

203

(228)

263

3,702

Operating income

Fibers &Textiles

47,622

Health &Amenity,
Others

7,776

Total

Eliminationor corporate

Consolidated
total

⎯

107,853

5,344[5,344]

113,198[5,344]⎯
107,853[1,142]

2,559

107,853b. Segment information by geographic area
1st six-month period ended September 30, 2008 (April 1, 2008 to September 30, 2008)
Segment information by geographic area is omitted, since sales in Japan exceed 90% of total sales ofall segments.
c. Overseas sales
1st six-month period ended September 30, 2008 (April 1, 2008 to September 30, 2008)
16,061I. Overseas sales (million yen)
107,853
II. Consolidated sales (million yen)
14.9
III. Ratio of overseas sales to consolidated sales (%)(Note) Only total overseas sales were provided, since there were no segments whose overseas sales
exceeded 10% of consolidated sales.
(6) Notes on significant changes in the amount of shareholders’ equity
Not applicable- 11 -

Unitika Ltd. (3103)

Financial results for the 1st six-month period of fiscal year ending March 31, 2009

“Reference material”
Financial statements for the 1st six-month period of the previous fiscal year
(1) Consolidated statements of income for the 1st six-month period ended September 30, 2007

Account title
I. Net sales
II. Cost of sales
Gross profit
III. Selling, general and administrative expenses
Operating income
IV. Non-operating income
Interest income
Dividends income
Gain on sales of investment securities
Gain on contribution of securities to retirement benefit trust
Rent income
Equity in earnings of affiliates
Other
V. Non-operating expenses
Interest expenses
Other personal expenses
Other
Ordinary income
VI. Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of subsidiaries and affiliates’ stocks
VII. Extraordinary loss
Loss on disposal of noncurrent assets
Loss on valuation of inventories
Business structure improvement expenses
Other
Net income before income taxes
Income taxes-current
Income taxes-deferred
Minority interests in income
Net income- 12 -

6-month period ended
September 30, 2007
(from April 1, 2007 to
September 30, 2007)
Amount (million yen)
111,695
91,751
19,943
15,487
4,456
109
99
2
299
72
541
1,010

2,135

2,024
702
731

3,458
3,132

747
512

1,260

373
265
479
671

1,789
2,603

678
253

931
(57)
1,728

Unitika Ltd. (3103)

Financial results for the 1st six-month period of fiscal year ending March 31, 2009

(2) Consolidated statements of cash flows for the 1st six-month period ended September 30, 2007

Account title
I. Net cash provided by (used in) operating activities
Net income before income taxes
Depreciation and amortization
Increase in allowance for doubtful accounts
Interest expenses
Gain on sales of investment securities
Gain on sales of subsidiaries and affiliates’ stocks
Decrease (increase) in notes and accounts receivabletrade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other
Sub-totalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
II. Net cash provided by (used in) investment activities
Decrease (increase) in time deposits
Purchase of investment securities
Proceeds from sales of investment securities andshort-term investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Other
Net cash provided by (used in) investment activities- 13 -

6-month period ended
September 30, 2007
(from April 1, 2007 to
September 30, 2007)
Amount (million yen)
2,603
3,205
124
2,024
(2)
(512)

2,530
(236)
(4,327)(1,028)4,379
229(2,079)
(683)

1,846
22
(20)

1,795
(3,552)887(391)(1,259)

Unitika Ltd. (3103)

Financial results for the 1st six-month period of fiscal year ending March 31, 2009

Account title
III. 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
Redemption of bonds
Cash dividends paid
Net cash provided by (used in) financing activities
IV. Effect of exchange rate change on cash and cash equivalents
V. Net increase (decrease) in cash and cash equivalents
VI. Cash and cash equivalents at beginning of period
VII. Cash and cash equivalents at end of period- 14 -

6-month period ended
September 30, 2007
(from April 1, 2007 to
September 30, 2007)
Amount (million yen)
2,302
19,166(23,450)
(200)
(936)
(3,117)192(2,337)
15,47913,142

Unitika Ltd. (3103)

Financial results for the 1st six-month period of fiscal year ending March 31, 2009(3) Segment information
Segment information by business1st six-month period ended September 30, 2007 (April 1, 2007 to September 30, 2007)(Unit: Millions of yen)
Polymers

Environmental
Business/
Advanced
Materials

Fibers &TextilesHealth &Amenity,
OthersTotal

Net sales(1) Net sales tooutside customers(2) Inter-segment
sales or transfers

34,693

14,47251,80910,719111,695

1,951

287

346

1,843

Total

36,644

14,75952,156

Operating expenses

33,64014,05851,460Eliminationor corporate

Consolidated
total

⎯

111,695

4,429[4,429]12,563

116,125[4,429]⎯111,695

11,475

110,635[3,396]107,239

Operating income
3,004
701
696
1,087
5,489
[1,033]
4,456(Note) Of operating expenses, the amount of unallocatable operating expenses included in “elimination or corporate” amounted to
1,040 million yen.

- 15 -

Unitika Ltd. (3103)

Financial results for the 1st six-month period of fiscal year ending March 31, 2009

6. Other information
Financial Results for the 1st Six-Month Period of the Fiscal Year Ending March 31, 2009
Supplementary informationc Results and forecast for the Fiscal Year Ending March 31, 2009
Net sales
FY ended March 2007
FY ended March 2008
Consolidated
performance FY ending March 2009
Comparison to previous FY

Operatingincome(Millions of yen)
Ordinary
Net income
incomeFull year

220,572

11,171

8,458

2,562

1st six-months

111,695

4,456

3,132

1,728

Full year

234,744

11,553

8,013

1,550

1st six-months

107,853

2,559

1,236

521

Full year (forecast)

233,000

9,000

5,500

1,000

1st six-months(3,842)(1,897)(1,896)(1,207)Full year (forecast)(1,744)(2,553)(2,513)(550)

d Segment information (consolidated basis)(Millions of yen)

Resultsforprevious
year

Polymers

Environmental
Business/
Advanced
Materials

Fibers &TextilesHealth &Elimination ConsoliAmenity,
or corporate dated total
Others

1st six-month Net sales to outside customers
period ended Component ratio (%)
SeptemberOperating income
2007
Component ratio (%)

34,693

14,47251,80910,719

31.1

13.0

46.4

9.6

Net sales to outside customers
FY ended
March 2008⎯

111,695
100.0
4,456

3,004

701

696

1,087

⎯
(1,033)

67.4

15.7

15.6

24.4

(23.2)

100.0

70,91935,195

104,577

24,051⎯

234,744

Component ratio (%)

30.2

15.0

44.5

10.2

100.0

Operating income

7,078

3,218

1,710

2,862

⎯
(3,316)

11,553Component ratio (%)

61.3

27.9

14.8

24.8

(28.7)

100.0

38,081

14,37347,622

7,776⎯

107,853

35.3

13.3

44.2

7.2

100.0

3,464

203

(228)

263

⎯
(1,142)

135.4

7.9

(8.9)

10.3

(44.6)

100.0

77,00033,00099,00024,000⎯233,000
9,000

1st six-month Net sales to outside customers
period ended Component ratio (%)
September
Forecast 2008 (results) Operating income
Component ratio (%)
forcurrent
Net sales to outside customers
year
FY endingComponent ratio (%)
March 2009
Operating income(forecast)Component ratio (%)
1st six-month Net sales to outside customers
period ended Percentage change (%)
SeptemberOperating income
Compar- 2008
Percentage change (%)
ison toprevious
Net sales to outside customers
FY
FY ending
Percentage change (%)
March 2009
Operating income(forecast)
Percentage change (%)

2,559

33.0

14.2

42.5

10.3

7,800

2,000

500

2,100

⎯
(3,400)

86.7

22.2

5.6

23.3

(37.8)

100.0

3,388

(99)

(4,187)(2,943)⎯(3,842)⎯(109)(1,897)

9.8

(0.7)

(8.1)

(27.5)

460

(498)

(924)

(824)

100.0

(3.4)

15.3

(71.0)(132.8)(75.8)

10.6(42.6)

6,081(2,195)(5,577)(51)⎯(1,744)

8.6

(6.2)

(5.3)

(0.2)

722

(1,218)(1,210)

(762)

⎯
(84)

(2,553)10.2(37.8)(70.8)(26.6)

2.5

22.1- 16 -(0.7)

Unitika Ltd. (3103)

Financial results for the 1st six-month period of fiscal year ending March 31, 2009e Capital expenditures, depreciation and amortization (property, plant and equipment), research anddevelopment expenses, interest bearing liability, financial account balance

Capitalexpenditures
FY ended March 2007
1st six-month period ended September 2007
FY ended March 2008
1st six-month period ended September 2008
FY ending March 2009

Full year
Q2
Full year
Q2
Full year(forecast)Research
Depreciation
andanddevelopment
amortization
expenses

5,723
3,420
7,167
4,992

6,633
3,089
6,467
3,366

8,146

7,286

4,377
2,126
4,230
2,150

(Millions of yen)Interest
bearing
Financialaccount
liability(end ofbalanceterm)
196,959(3,475)
194,981(1,815)
192,785(3,699)192,489(1,728)f Cash flows (Consolidated basis)

FY ended March 2007
1st six-month period ended September 2007
FY ended March 2008
1st six-month period ended September 2008

Full year
Q2
Full year
Q2

Net cashprovided by(used in)operatingactivities
11,903
1,846
8,129
4,011

g Number of employees
FY ended March 2007
1st six-month period ended September 2007
FY ended March 2008
1st six-month period ended September 2008

(Persons)
Consolidated basis
5,030
5,584
5,531
5,556

- 17 -Net cashprovided by(used in)investingactivities(7,097)(1,259)(5,500)(3,960)(Millions of yen)
Net cashprovided by
Cash and cash
equivalents at end of(used in)financing
periodactivities(3,779)15,479(3,117)
13,142(5,113)
13,209(1,827)
11,487