Member of Financial Accounting Standards Foundation

Financial Results for the 3rd Quarter of the Fiscal Year Ending March 31, 2016
February 5, 2016
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: Shoji Ishikawa, Executive Officer, General Manager of Accounting Department
Expected submission of quarterly report: February 12, 2016
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

TEL: +81-6-6281-5721(Figures rounded down to nearest million yen.)
1. Consolidated performance for 3rd quarter of fiscal year ending March 31, 2016 (April 1, 2015 to December 31, 2015)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales
%
(7.2)
(3.9)

Millions of yen

Q3 of FY ending March 31, 2016
Q3 of FY ended March 31, 2015

(Note) Comprehensive income

Operating income

106,777
115,007

%
27.2
13.5

Millions of yen

7,049
5,542

Quarterly profit attributableto owners of parent

Ordinary income
%
2.7
36.3

Millions of yen

5,120
4,988

%

Millions of yen

6,161(20,202)——

Q3 of FY ending March 31, 2016: 6,092 million yen [%]Q3 of FY ended March 31, 2015: (20,243) million yen [%]Quarterly net income per share

Quarterly net income per share after full dilution
Yen
4.87

Yen
9.38
(35.57)Q3 of FY ending March 31, 2016
Q3 of FY ended March 31, 2015

(2) Consolidated financial situation
Total assets
Q3 of FY ending March 31, 2016
FY ended March 31, 2015

(Reference) Shareholders’ equity

Net assets

Millions of yen
229,601
235,882

Capital adequacy ratio

Millions of yen
36,96731,590

%
14.7
12.0

3rd quarter of fiscal year ending March 31, 2016: 33,671 million yen
Fiscal year ended March 31, 2015: 28,354 million yen

2. Dividend payment
Dividends per share
End of Q1

End of Q2Yen

FY ended March 31, 2015
FY ending March 31, 2016End of Q3
Yen
0.00



0.00



Year end
Yen

FY ending March 31, 2016 (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, 2016 (April 1, 2015 to March 31, 2016)(% figures represent changes from same period in previous year.)Net sales

FY ending March 31, 2016

Operating income

Profit attributable toowners of parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

145,000(8.9)

11,300

26.7

8,800

14.6

5,000

%

―

Net income per
share
Yen

6.94

(Note) Revision of the latest forecasts of operational results: Yes
Regarding revisions to the forecasts of our consolidated performance, please refer to the “Notice of revisions to the full-term estimates”
released today (Feb. 5, 2016.)

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: 5 companies; (company name): Unitika Berkshire Co., Ltd., Unitika Information Systems Co., Ltd.,
Diabond Industry Co., Ltd., Unitika Environmental Technical Center Ltd., Unitika NP Cloth Co., 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: Yes
 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, 2016: 577,523,433 sharesFiscal year ended March 31, 2015: 577,523,433 shares Number of treasury stocks at end of term
3rd quarter of the fiscal year ending March 31, 2016: 802,466 sharesFiscal year ended March 31, 2015: 794,415 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
3rd quarter of the fiscal year ending March 31, 2016: 576,724,606 shares
3rd quarter of the fiscal year ended March 31, 2015: 576,736,511 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, 2015

—

0.00

—

FY ending March 31, 2016

—

0.00

—

FY ending March 31, 2016 (forecast)Class B share

Yen

Yen

Yen

FY ended March 31, 2015

—

0.00

—

FY ending March 31, 2016

—

0.00

—

FY ending March 31, 2016 (forecast)Class C share

Yen

Yen

Yen

FY ended March 31, 2015

—

0.00

—

FY ending March 31, 2016

—

0.00

—

FY ending March 31, 2016 (forecast)Year end

Total

Yen

Yen

8,021.90

8,021.90

12,000.00

12,000.00

Yen

Yen

15,870.00

15,870.00

23,740.00

23,740.00

Yen

Yen

40,109.60

40,109.60

60,000.00

60,000.00

Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2016

 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. Quarterly Financial Statements............................................................................................................. 5(1) Consolidated quarterly balance sheets ...................................................................................... 5(2) Consolidated quarterly statements of income and consolidated quarterly statements ofcomprehensive income ............................................................................................................ 7
Consolidated quarterly statements of income
Nine-month period ended December 31, 2015 ............................................................................. 7
Consolidated quarterly statements of comprehensive income
Nine-month period ended December 31, 2015 ............................................................................. 8(3) Notes on quarterly consolidated financial statements ................................................................ 9(Notes on going concern assumption) ...................................................................................... 9(Notes on significant changes in shareholders’ equity) ............................................................. 9(Segment information) ............................................................................................................ 9-1 -Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2016

1. Qualitative Information on Quarterly Results(1) Explanation of operational results
In the first nine months of the consolidated fiscal year ending March 31, 2016 (from April 1, 2015 to December
31, 2015), the Japanese economy continued to show a moderate recovery, thanks to economic policy based on
the Japanese government’s growth strategy, a weak yen and low crude oil prices, as well as improvements incorporate earnings and the job market. On the other hand, a recovery in personal consumption remained at aslow pace due to the effects of rising consumer prices and other factors. Globally, the outlook was uncertain
due to risks of an economic downturn, such as a downturn in the global economy triggered by slower growthin the Chinese economy and concerns over international affairs.
In this environment, the Unitika Group tried to strengthen its foundation as a functional materials manufacturer
centering on the Polymers business with the aim of achieving targets at an early stage under the growth strategy
stated in its new medium-term management plan that started last fiscal year. In addition, we have completed
most of the business portfolio restructuring of low-profit-margin businesses based on the medium-term
management plan. During the first nine months of the current consolidated fiscal year, we finished selling realestate affiliated with the Toyohashi plant which the Group owns. In addition, we dissolved UNITIKA
EMBLEM CHINA LTD., which was a consolidated subsidiary. We also decided to merge UNIMORE LTD.
another consolidated subsidiary, into our firm.
As a result, during the first nine months of the current consolidated fiscal year, the Unitika Group reported net
sales of 106,777 million yen (down 7.2% year-on-year), operating income of 7.049 million yen (up 27.2%
year-on-year), ordinary income of 5,120 million yen (up 2.7% year-on-year) and profit attributable to ownersof parent of 6,161 million yen (net loss of 20,202 million yen in the same period of the previous year).
Here is a summary of business by segment.
From the first quarter of the current accounting year, Unitika reclassified its reporting segments. The
statements referring to the comparison below are based on reclassified figures of the same period of theprevious year. For details, please see 3. Quarterly Consolidated Financial Statements, (3) Notes on quarterly
consolidated financial statements (Segment information).
[Polymers]
In the Films business, domestic demand in the packaging sector maintained steady growth, although it wasaffected by the economic slowdown overseas, mainly in China. Sales in the industrial sector declined forelectric and electronic equipment applications and automobile applications, but sales of high-value-added
products such as highly heat-resistant polyamide film grew robustly. Overall, profit increased due to various
cost-cutting measures and a drop in crude oil prices.
In the Resin business, sales volume of nylon resins grew steadily, thanks to a recovery in demand fromJapanese automakers. Sales of the Company’s original polyarylate resin for information terminal applications
grew robustly. Meanwhile, demand the environmentally friendly water-based polyolefin cationic emulsion
maintained steady growth due to sales of use in solar batteries.
In the Non-woven Fabrics business, sales of polyester spunbond fabrics increased for daily productapplications. But sales declined mainly in the agricultural and building material applications. Meanwhile, salesof cotton spunlace suffered weak exports, but enjoyed growth in skin care products in the backdrop of
expanding inbound demand.
Consequently, the Polymers business posted operating income of 5,702 million yen (up 33.2% year-on-year)
on net sales of 41,808 million yen (down 0.2% year-on-year).
[Advanced Materials]
In the Glass Fibers business, sales in the industrial materials sector, mainly building-related materials,
generally remained strong. In the electronic materials sector, sales of IC cloth, continued to see weak sales in
information terminal applications in and outside of Japan. In the Glass Beads business, sales for industrial
applications generally grew strong. Sales of reflective material applications continued to increase both
domestically and internationally. Meanwhile, the Activated Carbon Fibers business was robust. Gas phaseapplications continued to suffer, but demand for mainstay water purifier applications recovered.
Consequently, the Advanced Materials business posted operating income of 1,082 million yen (up 3.7% yearon-year) on net sales of 8,927 million yen (down 4.0% year-on-year).
[Fibers and Textiles]
In the Industrial Materials business, sales of ultra-high strength polyester filament yarn remained weak in themainstay field of civil engineering. However, profits improved due to efforts to transferring our businessresources to high-profit-margin products such as composite fiber. In the short-fiber polyester business,
profitability improved substantially due to the near completion of shrinking low-profit-margin businesses inline with structural reforms that led to transferring the focus to high-value-added products.
In the Garments, Lifestyle Materials, and Bedding business, denim exports remained at previous-year levels,-2 -Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2016

but domestic sales in the uniform field were weak, resulting in a decline in sales.
Consequently, the Fibers and Textiles business posted operating income of 797 million yen (up 180.6% yearon-year) on net sales of 48,038 million yen (down 12.1% year-on-year).
[Others]
The Others category posted an operating loss of 555 million yen (operating loss of 43 million yen in the same
period of the previous year) on net sales of 8,003 million yen (down 12.8% year-on-year) due to the effects oftransfer of equities and businesses and liquidation associated with the business portfolio restructuring..
(2) Explanation of financial situation
Total assets declined by 6,280 million yen from the end of the previous consolidated fiscal year to 229,601
million yen. This is due mainly to a decline in inventories and property, plant and equipment despite an increasein cash and deposits. Liabilities decreased by 11,656 million yen from the end of the previous consolidated
fiscal year to 192,634 million yen. This is mainly due to a decline in notes and accounts payable-trade andprovisions. Net assets increased by 5,376 million yen from the end of the previous consolidated fiscal year to36,967 million yen. This is mainly due to an increase in retained earnings stemming from the booking of profit
attributable to owners of parent.
(3) Explanation of future forecast information including forecast of consolidated performance
Regarding revisions to the forecasts of our consolidated performance, please refer to the “Notice of revisions
to the full-term estimates” released today (Feb. 5, 2016).
2. Matters concerning Summary Information (Notes)(1) Changes in significant subsidiaries during the period
From the first quarter of the current consolidated accounting year, Unitika Berkshire Co., Ltd., Unitika
Information Systems Co., Ltd., Diabond Industry Co., Ltd., and Unitika Environmental Technical Center Ltd.
were excluded from consolidation as a result of divestiture of their shares.
From the second quarter of the current consolidated accounting year, Unitika NP Cloth Co., Ltd. was excluded
from consolidation as a result of the completion of liquidation.
(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(Changes in accounting policies)(Application of the Accounting Standard for Business Combination)
From the first quarter of the current consolidated accounting year, the Company adopted the AccountingStandard for Business Combination (ASBJ Statement No. 21, September 13, 2013, hereinafter the “Business
Combination Accounting Standards”), the Accounting Standards for Consolidated Financial Statements(ASBJ Statement No. 22, September 13, 2013, hereinafter the “Consolidated Accounting Standards”), and the
Accounting Standard for Business Divestitures (ASBJ Statement No. 7, September 13, 2013, hereinafter the“Business Divestitures Accounting Standards”). In response to the adoption of these standards, the Company
changed the accounting treatment of the Company’s equity in subsidiaries under the control of the Company.
Specifically, differences resulting from the Company’s acquisition of shares of subsidiaries are recorded as acapital surplus, and the costs related to those acquisitions are recorded as expenses for the fiscal year in which
the acquisitions are made. For business combinations in and after the first quarter of the current consolidated
accounting year, the method to allocate acquisition costs has changed. The acquisition cost modified bytemporary accounting is allocated to the consolidated financial statements for the quarter in which the businesscombination is implemented. In addition, the presentation of net income has also changed. And thepresentation as a “minority interests” has changed to “non-controlling interests.” To reflect these changes,
presentations in the consolidated financial statements for the first nine months and the full year of the previous
consolidated fiscal year were reclassified.
In adopting the Business Combination Accounting Standards, etc., the Company adopts the transitional
treatments as stipulated in Article 58-2 (4) of the same Standards, Article 44-5 (4) of the Consolidated
Accounting Standards, and Article 57-4 (4) of the Business Divestiture Accounting Standards in and after the
beginning of the first quarter of the current consolidated accounting year.
As a result, this third quarter consolidated fiscal reporting period saw an increase of 7 million yen in operating
income, and 26 million yen declines each in both ordinary income and net income before income taxes for the
first nine months of the current consolidated accounting year. In addition, capital surplus as of the end of thisthird quarter declined by 94 million yen.

-3 -

Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2016

3. Quarterly Consolidated Financial Statements(1) Consolidated quarterly balance sheets(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2015)
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
Goodwill
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 2016
(December 31, 2015)

31,73839,05937,3774,800(161)
112,814

36,22438,73634,922
4,537(143)
114,276

76,90439,538116,443

69,26039,275
108,535

4
1,480
1,485

1
1,601
1,602

5,382
(243)
5,138
123,067
235,882

5,294
(106)
5,187
115,325
229,601

Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2016

(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2015)
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
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 2016
(December 31, 2015)

20,368
2,072
1,703
461
1,531
3,947
1,751
12,00543,842

17,657
1,926
1,126
184
698
3,041
1,173
10,36736,176130,127
26
12,353
17,941
160,449
204,291

129,035
7
11,161
16,253
156,457
192,634

100
60,275(31,138)(45)
29,191

100
28,401
4,563(46)
33,018

468

613

(224)
5,165
(2,807)(3,439)(837)
3,236
31,590235,882

(172)
6,671
(3,274)(3,185)652
3,295
36,967
229,601

Unitika Ltd. (3103)

Financial results for 3rd quarter of fiscal year ending March 31, 2016

(2) Consolidated quarterly statements of income and consolidated quarterly statements of comprehensive
income(Consolidated quarterly statements of income)(Nine-month period ended December 31, 2015)

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
methodRent income
Other
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
Impairment loss
Business structure improvement expenses
Other
Total extraordinary losses
Income (loss) before income taxes and minority
interests
Income taxes-current
Income taxes-deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests

Nine-month period
ended December 31, 2014
(April 1, 2014 toDecember 31, 2014)
115,007
92,15622,85017,308
5,542(Unit: Millions of yen)
Nine-month period
ended December 31, 2015
(April 1, 2015 to
December 31, 2015)
106,777
84,176
22,601
15,551
7,049

101
72
1,772

41
82
—

7

12

66
340
2,362

234
369
739

2,051
864
2,916
4,988

1,790
878
2,668
5,120

—
—

1,206
375

—
—

43
1,625

401
2,894
21,102481
24,880

340
—
609
89
1,039

(19,892)

5,706

765
(368)
397
(20,289)

120
(604)
(483)
6,190

(87)
(20,202)28
6,161

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

Financial results for 3rd quarter of fiscal year ending March 31, 2016

(Consolidated quarterly statements of comprehensive income)(Nine-month period ended December 31, 2015)

Profit (loss)

Nine-month period ended
December 31, 2014
(April 1, 2014 toDecember 31, 2014)(20,289)(Unit: Millions of yen)
Nine-month period ended
December 31, 2015
(April 1, 2015 to
December 31, 2015)
6,190

57
(224)
—
(813)

145
53
(66)
(483)

1,026

254

45

(97)

(20,243)

6,092(20,093)

6,078

(149)

13

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, 2016(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, 2014 (April 1, 2014 to December 31, 2014)
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

41,879
8,847

9,294
680

54,651
766

105,826
10,2959,181 115,007
1,308 11,603—(11,603)

115,007—

Total

50,727

9,975

55,418116,121

10,489 126,610(11,603)

115,007

Segment income (loss)
4,280
1,044
284
5,608
(43)
5,564
(22)
5,542
(Notes) 1. The Other category comprises business segments that are not included in reportable segments. It includes Environmental
business, Medical business, Healthcare & Amenity 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, 2015 (April 1, 2015 to December 31, 2015)
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

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 consolidated statements of income.

2. Information related to the reclassification of reporting segments
In the first quarter of the current consolidated accounting year, Unitika reformed the organizational
structure and business classifications for management purposes, with the aim of achieving the goalsof the medium-term management plan. In response to these revisions, the classification of reporting
segments for certain consolidated subsidiaries were also revised.
In addition, as for operating expenses, part of retirement benefit costs and part of R&D expenses,
which were included in the adjustment item in the past, are allocated to relevant segments.
The segment information for the first nine months of the previous consolidated fiscal year wasreclassified as segment information after this revision.

-8 -