Consolidated Financial Statement for 3Q of FY2007(October 1, 2007 - December 31, 2007)
February 6, 2008
UNITIKA LTD.
Listed on the First Section of TSE and OSE (Stock Code: 3103)
URL http://www.unitika.co.jp/eRepresentative: Otofumi ONISHI, President and Chief Executive Officer
Contact Person: Kazuo OTSUKI, GM, Accounting Department Tel: +81-6-6281-5721(Amounts less than one million yen are omitted)

1. Consolidated Performance for the 3rd Quarter FY2007 (October 1, 2007 - December 31, 2007)(1)Consolidated Operating Results
Three months ended December 31

Percentage indicates increase /(decrease) from the previous year

Net sales

Operating income

Ordinary income%Million yen%

Net income

Million yen%

Million yen

2007

169,684

9.1

6,263(13.0)

3,585(27.5)

1,462(29.7)

2006

155,480

1.0

7,198(15.0)

4,947(24.8)

2,080

0.4

Year ended
March 31, 2007

220,572-

11,171-

8,458-

2,562-Net income per share

Diluted net income per share

YenYen

2007

3.08-

2006

4.37

-

Year ended
March 31, 2007

5.39-

Million yen%

(2) Consolidated Financial Position
As of December 31Total assets

Net assets

Million yen

Million yen

Shareholders’ equity
ratio%

2007

320,804

38,353

10.5

70.99

2006

334,12139,444

10.4

73.19

Year ended
March 31, 2007

328,382

39,959

10.8

74.24

-1-Net assets per shareYen

2. Situation on Dividends
The company is not paying dividends with the ending day of the third quarter as the record date and, therefore,a statement on dividends is omitted.
3. Forecast for the Fiscal Year 2007 Ending March 31, 2008 (from April 1, 2007 to March 31, 2008)
No amendments were made to the forecast for FY2007 that was announced on May 11, 2007 in the Financial
Statements for 2006.
4. Others(1) Changes in major subsidiaries during the subject fiscal year (transfer of specific subsidiaries following achange in the scope of consolidation): Yes
New companies, None, Exclusions, 1 company, (Name of the company: Unitika Uji Products Co., Ltd.)(2) Application of simplified methods in accounting procedures: Yes(3) Changes in accounting methods since the recent consolidated fiscal year: None
[Note: For further details, refer to “Qualitative Information and Financial Statements, Clause 4 Others”]* Note to ensure the appropriate use of the result forecast and the other special information
Any result forecast and future outlook statements contained in this material are based on the current information
available to and judged as reasonable by the company management. Actual performance and results may
significantly differ from these descriptions because of a number of factors.

-2-

[Qualitative Information and Financial Statements]
1. Qualitative Information for Consolidated Operating Results
During the 3rd quarter of FY2007 (from April 1, 2007 to December 31, 2007), the future obscure business outlook
increased with the instability of world-wide financial markets, the increase in petrochemical raw material prices
and such. Under such circumstances, net sales of our group showed 169,684 million yen, operating income was6,263 million yen, ordinary income was 3,585 million yen, and net income for the quarter was 1,462 million yen.
Here following, business performance is given by segment.
[Polymers]
Profitability of the polymer business as a whole: We endeavored to secure earnings by further repricing products,etc. against a backdrop of further price increase of raw materials and fuels.
In the film business, domestic sales of nylon film increased and an improvement in earnings of overseas
subsidiaries was achieved, while a recovery was seen in industrial applications for polyester films, but anadditional increase in raw materials prices put pressure on profits. In the resin business, sales of PET resin forbottle application decreased, but sales of functional resins mainly in materials for automotive, electrical andelectronic parts saw further expansion. In the nonwoven fabrics business, sales of spunbond fabrics for agriculture
applications and roofing applications remained sluggish, but applications for hygienic goods, such as diapers,
progressed favorably.
[Environmental Business and Advanced Materials]
In the environmental business, engineering works on backlog increased earnings, but with violent changes in
the market environment, improvements in profitability have been delayed. In the advanced materials
business, the effects of inventory adjustments of glass fibers for the IC cloth market and the electronic partsindustry continued. However, the sales of industrial material market applications grew. In addition, sales ofactivated carbon fibers and glass beads proceeded favorably.
[Fibers and Textiles]
In the synthetic fiber business, polyester short fibers was generally firm, but the rapid increase in raw materials
and fuels costs affected revenue of both long fibers clothing and industrial material applications, and also sales ofnylon fiber decreased. Sales of vinylon fibers for cement reinforcement continued firmly. On the other hand, thenatural fiber business was exposed to harsh conditions caused by intensified competition in the industry in generaland by the effect of foreign exchange market fluctuations.
[Healthcare & Amenity and Others]
In the healthcare & amenity business, the medical field business was firm, while revenues in the healthsupplements field improved. In other businesses, sales of condominiums proceeded smoothly.

-3-

2. Qualitative Information for Consolidated Financial Position
Total assets as of the end of the 3rd quarter of FY2007 amounted to 320,804 million yen, a decline of 7,578
million yen compared with the end of the previous period. The major increases and decreases were the increase insales credits and inventory assets and the decrease in investments and other assets.
Net assets, including minority interests, amounted to 38,353 million yen, increasing net income for this 3rdquarter but decreasing by 1,605 million yen compared with the end of the previous period due to unrealized gainon other securities and foreign currency translation adjustments.
3. Qualitative Information for Consolidated Result Forecast
There were no amendments to the result forecast.
4. Others(1) Changes in major subsidiaries during the subject fiscal year (transfer of specific subsidiaries following achange in the scope of consolidation):
Excluded 1 company: Unitika Uji Products Co., Ltd.
Unitika Uji Products Co., Ltd. was absorbed by merger and made defunct, while Unitika Ltd. was made thesurviving company.
(2) Adoption of simplified methods in accounting procedures: Yes
A simplified method is adopted for a part of the reserves.
(3) Changes in accounting methods since the recent consolidated fiscal year: None-4-5. Consolidated Balance Sheet
Unit:Millions of yen
Mar 31,2007

Dec 31,2007

Increase(Decrease)

16,50149,73465,2668,562
140,065

15,11752,316
68,1588,251
143,844(1,384)
2,581
2,892
(311)
3,778

14,00151,06768,3079,737
143,114

Intangible fixed assets

164,115
1,651

164,213
1,553

98
(98)

164,653
1,551

Investments and other assets
Total fixed assets
Total assets

22,550188,317
328,382

11,192
176,960
320,804(11,357)(11,357)(7,578)24,802
191,007334,121

LIABILITIESI.Current liabilities
Notes and accounts payable
Short-term interest-bearing debt
Other current liabilities
Total current liabilities

41,999106,760
20,239168,999

39,158132,852
20,628192,639(2,840)26,092389
23,64035,887
101,726
20,791
158,406

II.Long-term liabilities
Long-term interest-bearing debt
Allowance for retirement benefits
Other long-term liabilities
Total long-term liabilities
Total liabilities

90,1983,926
25,299119,423
288,423

67,6783,731
18,40089,810282,450(22,519)(194)(6,898)(29,613)(5,972)

103,605
4,532
28,133
136,271294,677

NET ASSETS
I.Shareholders' equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity

23,798
1,661
6,660
(37)
32,082

23,798
1,661
7,117
(42)
32,533

456
(5)
451

23,798
1,661
6,029
(35)
31,453

1,039
2

362
(0)

(677)
(3)

1,034
2

3,444
(1,258)3,475(2,610)31(1,352)

3,653(1,333)

3,227
4,649

1,227
4,593

(2,000)
(55)

3,356
4,634

39,959328,382

38,353
320,804(1,605)(7,578)39,444
334,121ASSETS
I.Current assets
Cash and cash equivalents
Notes and accounts receivable
Inventories
Other current assets
Total current assets
II.Fixed assets
Property,plant and equipment

Dec 31,2006

II.Valuation and translation adjustments
Unrealized gain on other securities
Deferred gain on derivatives
under hedges accounting
Land revaluation excess
Foreign currencytranslation adjustments
Total valuation and translation adjustments
III.Minority interests inconsolidated subsidiaries
Total net assets
Total liabilities and net assets-5-Consolidated Statements of Income
Unit:Millions of yen
Three months ended December 312006

2007

Increase(Decrease)

I. Net sales

155,480

169,684

14,204

220,572

II. Cost of sales

125,227

140,174

14,946

178,21130,25229,510(742)42,36023,05423,247

192

31,189

7,198

6,263

(934)

11,171

353
91

320
615

(32)
524

399
274

2,086
2,530

1,592
2,528(493)
(1)

3,074
3,748

2,861
1,919
4,780

3,062
2,143
5,206

201
224
425

3,875
2,585
6,461

4,947

3,585

(1,362)

8,458

36

1,269

1,232

41

2,347
2,636

2,233
2,621

(114)
(15)

5,129
3,369

660
(103)

1,279
(120)

619
(17)

947
(140)

2,080

1,462

(617)

2,562

Gross profit

III. Selling, general andadministrative expenses
Operating income

Year ended
March 31,2007

IV. Non-operating incomesInterest income and dividends
Equity in income of unconsolidated
subsidiaries and affiliates
Other incomes
Total non-operating incomes
V. Non-operating expenses
Interest expense
Other expenses
Total non-operating expenses
Ordinary income
VI. Extraordinary income
VII. Extraordinary losses
Income before income taxes
Tax expense
Minority interest in income ofconsolidated subsidiaries
Net income-6-

Segment Information
Business Segment Information
Three months ended December 31, 2006

Unit:Millions of yenPolymers

Environmental
Business andAdvancedMaterials(1) Outside customers

49,294

18,202(2) Inter-segment netsales and transfers
Total

2,878

II Operating expenses
Operating income

FibersandTextilesHealthcare& Amenityand Others

Total

Elimination
orCorporate

74,842

13,139155,480-

155,480

526

421

2,356

6,182

(6,182)-

52,17318,72875,264

15,495

161,662(6,182)

155,480

46,444
5,728

18,173555

74,295968

13,865
1,630

152,779
8,883(4,497)(1,684)

148,281
7,198

Consolidated Total
total

Net sales and operating income
I. Net sales(Note) Unallocated operating expenses disclosed in “Elimination or Corporate” amounted to 1,705 million yen.

Three months ended December 31, 2007

Unit:Millions of yen

Polymers

EnvironmentalBusiness andAdvanced
Materials

FibersandTextiles

Healthcare& Amenityand Others

Total

EliminationorCorporate

Consolidated Total
total

Net sales and operating income
I. Net sales(1) Outside customers

53,08823,41177,736

15,448

169,684-169,684(2) Inter-segment net
sales and transfers

2,985

439

499

2,635

6,559

(6,559)-Total

56,07423,85078,23518,083

176,244(6,559)169,684

II Operating expenses
Operating income

51,680
4,393

22,7801,069

77,405829

16,535
1,548

168,401
7,842(4,980)(1,578)

163,4216,263(Note) Unallocated operating expenses disclosed in “Elimination or Corporate” amounted to 1,641 million yen.

Fiscal year ended March 31, 2007

Unit:Millions of yen

Polymers

Environmental
Business andAdvanced
Materials

66,198
3,832

28,947703

103,236561

22,1903,372

220,572
8,470(8,470)220,572-Total

70,031

29,650103,798

25,562

229,042(8,470)220,572

II Operating expenses
Operating income

62,3907,64027,374
2,276

101,685
2,112

23,391
2,170

214,842
14,200(5,441)(3,028)

209,400
11,171

Net sales and operating income
I. Net sales(1) Outside customers(2) Inter-segment netsales and transfers

FibersandTextiles

Healthcare& Amenity
and Others

Total

Elimination
orCorporate(Note) Unallocated operating expenses disclosed in “Elimination or Corporate” amounted to 3,088 million yen.

-7-

Consolidated Total
total