Member of Financial Accounting Standards Foundation

Financial Report for Fiscal Year ended March 31, 2012
[Japanese GAAP] (Consolidated)
May 15, 2012

Company name: Unitika Ltd.
Code number: 3103
URL: http://www.unitika.co.jp/e/home.htm

Listed stock exchange: Tokyo Stock Exchange,
Osaka Securities
Exchange

Representative: Kenji Yasue, President and Chief Executive Officer
Contact: Shoji Ishikawa, General Manager of Accounting Department
TEL +81-6-6281-5721
Expected date for holding a regular shareholders meeting: June 28, 2012
Expected date for submitting securities report: June 28, 2012
Expected commencement date for paying dividend
Preparation of the attachment of Financial Report: Yes
Holding of a results presentation: Yes (for securities analysts and institutional investors)(Figures less than one million yen were omitted.)

1. Consolidated performance for fiscal year ended March 31, 2012 (April 1, 2011 to March 31,
2012)(1) Consolidated business results(Percentages represent changes from same period in previous year.)Net sales
Operating income
Ordinary income
Net income
Millions of% Millions of% Millions of% Millions of
%
yen
yen
yen
yen
FY ended March 31, 2012
174,662
(3.3)
9,579
(8.9)
5,753
(6.0)
1,297
(46.9)FY ended March 31, 2011
180,706(0.8)
10,513
23.1
6,119
36.7
2,444
(19.5)(Note) Comprehensive income
FY ended March 31, 2012: 1,205 million yen [(51.0%)]
FY ended March 31, 2011: 2,460 million yen [(35.1%)]
Net income per
Net income per
Ratio of operating
share after full Return on equity Return on asset
share
income to sales
dilution
Yen
Yen
%
%
%
FY ended March 31, 2012
2.35
2.28
5.1
2.1
5.5
5.14
11.6
2.2
FY ended March 31, 20115.8
(Reference) Equity in earnings/losses of affiliates FY ended March 31, 2012: (224 million yen)
FY ended March 31, 2011: 38 million yen(2) Consolidated financial situation
Total assets
Net assets
Capital adequacy ratio Net assets per share
Millions of yen
Millions of yen%
Yen
FY ended March 31, 2012
268,486
32,207
10.6
49.81
FY ended March 31, 2011
268,740
25,977
8.3
46.98(Reference) Shareholders’ equity:
FY ended March 31, 2012: 28,511 million yen
FY ended March 31, 2011: 22,336 million yen(3) Consolidated cash flows situation
Cash flows fromoperating activities

Cash flows frominvesting activities

Millions of yen
10,798
10,416

FY ended March 31, 2012
FY ended March 31, 2011

Balance of cash andcash equivalents atperiod end
Millions of yen
Millions of yen(4,393)
15,339(10,844)
16,589Cash flows fromfinancing activities

Millions of yen(7,449)(2,959)2. Dividend payment
Annual dividend per share
End of Q1 End of Q2 End of Q3

Yen
FY ended March 31, 2011
FY ended March 31, 2012
FY ending March 31,
2013(forecast)

Yen

Yen

Year end

Annual

Yen

Yen




0.00
0.00




0.00
0.00

0.00
0.00



0.00



0.00

0.00

AnnualDividend
Dividend ratio
dividends paid payout ratio of net assets(Total)(consolidated) (consolidated)

Millions of
yen



%




%



3. Forecast of consolidated performance for fiscal year ending March 31, 2013 (April 1, 2012
to March 31, 2013)
Net sales
Millions ofyenFirst six-month period
Full year(Percentages represent changes from same period in previous year.)
Net income
Ordinary income
Net income
per share
Millions of% Millions of% Millions of
%
Yen
yen
yen
yen
3,500 (28.4)
2,000 (22.9)300 (71.1)
0.52
9,000 (6.1)
6,000
4.3
2,000 54.1
3.47

Operating income%

83,500 (4.1)
175,000
0.2* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries
accompanying change of scope of consolidation): No(2) Changes in accounting policies, changes in accounting estimates and retrospective
restatement(i) Changes in accounting policies due to revisions of accounting standards: No(ii) Changes of accounting policies other than the above: No(iii) Changes in accounting estimates: No(iv) Retrospective restatement: No(3) Number of shares outstanding (Common stock)(i) Number of shares outstanding at end of period (including treasury stock):
Fiscal year ended March 31, 2012: 572,960,324 sharesFiscal year ended March 31, 2011: 475,969,000 shares(ii) Number of treasury stocks at end of period
Fiscal year ended March 31, 2012: 570,138 sharesFiscal year ended March 31, 2011: 561,784 shares(iii) Average number of shares outstanding during the term
Fiscal year ended March 31, 2012: 552,192,961 sharesFiscal year ended March 31, 2011: 475,415,759 shares(Reference) Summary of non-consolidated performance
1. Non-consolidated performance for fiscal year ended March 31, 2012 (April 1, 2011 to March 31,
2012)(1) Non-consolidated business results(Percentages represent changes from same period in previous year.)Net sales
Operating income
Ordinary income
Net income
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
FY ended March 31, 2012
98,159 (4.4)
7,774 (21.2)
4,911 (22.8)
286 (92.0)
FY ended March 31, 2011
102,663 13.0
9,863 23.6
6,362 42.3
3,570 21.6
Net income per share
FY ended March 31, 2012
FY ended March 31, 2011

Yen
0.52
7.51

Net income per share after
full dilution
Yen
0.50


(2) Non-consolidated financial situation
Total assets
Net assets
Capital adequacy ratio Net assets per share
Millions of yen
Millions of yen%
Yen
FY ended March 31, 2012
224,739
31,18713.9
54.49
FY ended March 31, 2011
226,857
25,706
11.3
54.07(Reference) Shareholders’ equity:
FY ended March 31, 2012: 31,187 million yen
FY ended March 31, 2011: 25,706 million yen* Presentation of situation of audit proceduresThis financial report is not subject to audit procedures under the Financial Instruments andExchange Law of Japan. Audit procedures concerning financial statements have not been
completed at the date of disclosure of this financial report.

* Explanation on appropriate use of forecasts of performance and other special items
The forward-looking statements in this document concerning forecasting of performance and etc.
are based on currently available information and assumptions considered by the company to bereasonable. The actual performance may be significantly different from the forecast due to various
factors. For the assumptions used as a basis for forecast of performance and important matterswhen using the forecast of performance, please refer to 1. Business results (1) Analysis ofbusiness results Forecast of business performance for fiscal year ending March 31, 2013 on
page 4.

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012

1. Business results........................................................................................................................................ 2(1) Analysis of Business results ................................................................................................................ 2(2) Analysis on financial situation ............................................................................................................ 4(3) Basic policy for profit distribution and dividends for the fiscal year ended March 31, 2012 and thefiscal year ending March 31, 2013............................................................................................................ 5
2. Management Policies ............................................................................................................................... 6(1) Basic management policies ................................................................................................................. 6(2) Targeted management index ............................................................................................................... 6(3) Medium- to long-term business strategies and issues to be addressed .................................................. 6
3. Consolidated financial statements............................................................................................................. 8(1) Consolidated balance sheets................................................................................................................ 8(2) Consolidated income statement and consolidated comprehensive income statement ...........................10(Consolidated income statement) .........................................................................................................10(Consolidated comprehensive income statement) .................................................................................11(3) Consolidated statements of changes in net assets ................................................................................12(4) Consolidated statements of cash flow.................................................................................................14(5) Notes regarding assumption of a going concern .................................................................................15(6) Significant items that are the basis for preparation of consolidated financial statements ......................15(7) Additional information ......................................................................................................................18(8) Notes on consolidated financial statements ........................................................................................18(Segment information etc.) ..................................................................................................................18(Per share information)........................................................................................................................20(Material subsequent events) ...............................................................................................................20
4. Other ......................................................................................................................................................21
Transfer of directors ............................................................................................................................21
5. Supplementary materials .........................................................................................................................22-1-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012

1. Business results(1) Analysis of Business results(i) Business results for fiscal year ended March 31, 2012
In the current fiscal year, the Japanese economy gradually recovered from a sharp contraction after theGreat East Japan Earthquake, but it stagnated after summer 2011 because of several adverse factors,
such as the sovereign debt crisis in Europe, unprecedented appreciation of the yen (the yen at one pointrose to the 75-yen level against the dollar) and devastating flooding in Thailand. Plunging exports anddisruption of global supply chains affected corporate business performance. Since then, there were some
visible signs that the economy had bottomed out, since the yen hit a plateau; supply chains returned tonormal; and quake-hit areas were restored. However, the Japanese economy remained in an
unpredictable situation, due to the fragility of the global economic recovery and various uncertain
factors, such as soaring crude oil prices and concerns over the shortage of electricity.
In such an environment, the Unitika Group continued promoting structural reform in accordance with
policies under its medium-term, three-year management plan, Reform 2011, which ended this fiscal
year. In the meantime, the Group strived to establish a revenue base for the Fibers and Textiles businessand strengthen business areas such as Polymers as an advanced materials manufacturer. Despite its
efforts, the Group saw its earnings decrease, mainly because demand for polymers stagnated due to theglobal economic slowdown and contraction of the market. As a result, the Group reported net sales of
174,662 million yen (down 6,043 million yen year-on-year), operating income of 9,579 million yen(down 934 million yen year-on-year), ordinary income of 5,753 million yen (down 365 million yen
year-on-year), and net income of 1,297 million yen (down 1,146 million yen year-on-year).
The Unitika Group has decided it will pay no dividend for the current fiscal year. The management
sincerely appreciates your understanding in this matter.
Here is a summary of business by segment.
[Polymers]
In the Films business, the Company saw sales to the packaging sector increase significantly, because
demand for mainly nylon films grew sharply due to concerns over the supply of food packaging
materials after the earthquake, though it entered into an adjustment phase from fall 2011. Meanwhile,
sales to the industrial sector decreased, because demand for polyester films remained sluggish due topoor sales of electric and electronics equipment in the second half of the current fiscal year, in addition
to weaker demand due to a fall in the capacity utilization of manufacturers after the earthquake. As aresult, overall sales remained flat but income grew.
In the Resins business, shipments of nylon for the automobile sector, a major sector, stagnated in thefirst half of the fiscal year due to production cutbacks, however, they recovered due to an increase inproduction in the second half of the fiscal year. Meanwhile, earnings of polyester deteriorated becauseof weaker demand from the electric and electronics equipment sectors as well as declining sales forbottle applications. In addition, demand for U-Polymer, the Company’s original polyarylate resin, foroffice machinery electric and electronics equipment applications plunged sharply, due to the recessionin Europe in the second half of the current fiscal year. As a result, overall sales and income decreased.
In the Non-woven Fabrics business, the Company saw sales of polyester spunbond fabrics grow due to
steady shipments for the construction and civil engineering sectors and exports for day-to-day productapplications, but profit decreased because the Company failed to fully absorb cost increases caused byrising raw material and fuel prices despite price revisions. In the cotton spunlace business, earnings
increased because of solid shipments for wet sheet applications due to the effects of power saving
efforts during summer. As a result, sales increased but income decreased in the Non-woven Fabrics
business as a whole.
The Company continued to strongly promote the use of the biomass plastic “Terramac” in four fields(films, resins, non-woven and textiles). Although adoption of the material by new customers steadily
increased for mainly sundry product applications, total shipments stagnated because of falling demand
from some existing customers due to the effects of the earthquake.
-2-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012

Consequently, the Polymers business posted operating income of 9,615 million yen (down 934 million
yen year-on-year) on sales of 67,294 million yen (up 278 million yen year-on-year).
[Advanced Materials]
In the Advanced Materials business, sales of glass fibers as a whole remained robust because of steadyshipments, especially for building and civil engineering refurbishment use, though shipments forinterior material use among the construction and civil engineering fields stagnated. Demand for IC cloth
headed for recovery in the first half of the current fiscal year. However, domestic demand plunged andexport profitability deteriorated due to the strong yen in the second half of the current fiscal year.
Despite its efforts to expand sales of high-value added products, the Company struggled to remain
profitable. Shipments of glass beads for road marking use were sluggish and those for industrial use lost
momentum, due to falling capacity utilization for some customers and declining orders of high-value
added products after the earthquake. Meanwhile, sales for reflective materials use, such as signs andprotective clothing (mainly for export), dropped due to appreciation of the yen. In addition, shipmentsof activated carbon fiber, mainly for water purifiers including those built into faucets in Japan, werestrong.
Consequently, the Advanced Materials business posted operating income of 1,731 million yen (down 39
million yen year-on-year) on net sales of 15,020 million yen (up 88 million yen year-on-year).
[Fibers and Textiles]
In the Industrial Materials business, shipments of ultra-high-strength polyester filament yarn for
construction and civil engineering uses were solid in the first half of the current fiscal year, but loststeam due to sluggish demand in the second half of the current fiscal year. Although sales of short-fiber
polyester grew, the department saw its profitability deteriorate because of declining export profitability
due to the strong yen, fierce price competition with overseas products, and failure to fully absorb cost
increases caused by soaring raw material and fuel prices with price revisions. In addition, the Company
tried to expand sales of vinylon fiber by cultivating new customers in emerging countries, while
demand from reinforced concrete applications, a replacement for asbestos, remained weak. Despite its
efforts, the Company saw profitability deteriorate as a result of a decrease in shipments, especially inthe second half of the current fiscal year, due to price competition with overseas products, theappreciation of the yen, and rising raw material and fuel prices.
In the Garments, Lifestyle Materials, and Bedding business, demand from both the public and private
sectors remained robust in the uniform field, while sales of high-value added products, such as heatretaining materials, moisture absorption and desorption and heat-shielding materials, were steady in the
sporting and women’s clothing fields due to the rise in power saving awareness nationwide. Though
overall sales remained flat because of the withdrawal from money-losing businesses and falling exports
caused by the strong yen, profitability improved further due to efforts to promote differentiation andreduce costs thoroughly.
Consequently, the Fibers and Textiles business posted operating income of 744 million yen (down 96
million yen year-on-year) on net sales of 76,701 million yen (down 394 million yen year-on-year).

[Others]
In the Healthcare & Amenity business, sales of health food, such as Hanabiratake-related goods, andfunctional feed materials remained relatively strong, while sales of functional dietary materials
stagnated due to weak domestic demand in the first half of the current fiscal year. In the Medical
business, in addition to increasing sales of catheters for the treatment of circulatory system diseases,
sales of catheters for drainage purposes grew due to the launch of new products in the medical productfield. Overall sales were also steady in the biochemical field due to solid demand including through theattainment of new customers.
-3-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012

In the Real Estate business, revenue from the sales of condominiums increased, but profitability did notrecover completely.
Consequently, the Others category posted operating income of 751 million yen (down 200 million yen
year-on-year) on net sales of 15,646 million yen (down 6,016 million yen year-on-year) due to theeffects of the transfer of the environmental plant-related business to the Hitachi Zosen Group.
(ii) Forecast of business performance for fiscal year ending March 31, 2013
With the business outlook for the next fiscal year having become uncertain due to concerns over global
economic recovery, the Unitika Group will steadily implement measures stated in Change & Challenge
2014, its medium-term, three-year management plan, including measures to strengthen its businessfoundation as a functional material manufacturer and to improve the profitability of low-profit
businesses, with the aim of further enhancing its financial strength and shareholders’ equity. The Group
forecasts net sales of 175,000 million yen, operating income of 9,000 million yen, ordinary income of
6,000 million yen, and net income of 2,000 million yen for the fiscal year ending March 31, 2013.
(2) Analysis on financial situation
Total assets decreased by 253 million yen from the end of the previous fiscal year to 268,486 million
yen, mainly due to a decrease in cash and deposits, and notes and accounts receivable-trade despite anincrease in inventories and property, plant and equipment. Liabilities decreased by 6,484 million yen
from the end of the previous fiscal year to 236,278 million yen, mainly due to a decrease in loans
payable. Net assets increased by 6,230 million yen from the end of the previous fiscal year to 32,207
million yen, mainly due to an increase in capital stock and capital surplus by exercise of subscription
rights to shares and retained earnings.
Here is a summary of the cash flow situation.
(Net cash provided by [used in] operating activities)
Net cash provided by operations amounted to 10,798 million yen (up 381 million yen year-on-year), due
to a decrease in cash-inflow—the total of net income before income taxes, depreciation andamortization—and notes and accounts receivable-trade during the current fiscal year.
(Net cash provided by [used in] investment activities)
Net cash used in investment activities amounted to 7,449 million yen (net cash of 2,959 million yen
used in the previous fiscal year) due to capital expenditures of 7,713 million yen during the current
fiscal year.
(Net cash provided by [used in] financing activities)
Net cash used in financing activities amounted to 4,393 million yen (net cash of 10,844 million yen
used in the previous fiscal year) due to a reduction in interest-bearing debt during the current fiscal year.
As a result, cash and cash equivalents at the end of the current fiscal year decreased by 1,250 million
yen from the end of the previous fiscal year to 15,339 million yen.

-4-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012

The table below shows trends in cash flow indicators.

(i)Shareholders’ equity ratio (%)(ii) Shareholders’ equity ratio on
market value basis (%)(iii) Ratio of interest-bearing debt tocash flow(iv) Interest coverage ratio

Year ended
March 31, 2012

Year ended
March 31, 2011

Year ended
March 31, 2010

10.6

8.3

7.2

11.1

11.9

13.0

16.3

17.8

13.7

3.3

3.0

3.9

(Notes) Shareholders’ equity ratio: Shareholders’ equity/Total assets
Shareholders’ equity ratio on market value basis: Market capitalization/Total assets
Ratio of interest-bearing debt to cash flow: Interest-bearing debt/Cash flow
Interest coverage ratio: Cash flow/Interest expense*1. Each indicator is calculated based on consolidated financial results.
*2. Cash flow is net cash provided by operating activities.
*3. Interest-bearing debt includes all liabilities, reported on the consolidated balance sheet, on
which interest is paid.
(3) Basic policy for profit distribution and dividends for the fiscal year ended March 31, 2012 and the fiscal
year ending March 31, 2013
The Unitika Group considers that the profit distribution to its shareholders is an important aspect of its
business, but management intends to cancel dividend payment for the fiscal year ended March 31, 2012,
with consideration on the business results and financial situation at the end of the fiscal year.
For the future, Unitika’s basic dividend policy is to conduct profit distribution to shareholders that is
appropriate to the Company’s financial results. At the same time, the Company intends to decide
dividend payment after considering the improvement of financial position and enhancing of internal
reserve for securing profit for shareholders from a long-term perspective.

-5-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012

2. Management Policies(1) Basic management policies
Having the corporate mission of contributing to society by connecting daily life with technology, theUnitika Group has been aiming to become a company that contributes to the improvement of people’s
lives and preservation of the environment, and social recognition. Management believes that the Group’s
contributions to society will enhance its corporate value, which in turn will reward shareholders, while
the Company continues to promote its basic management policies: implementation of structural reform,
establishment of a foundation as a functional materials manufacturer and strengthening of its corporate
structure and shareholders’ equity.
(2) Targeted management index
The Unitika Group places greater importance on amount of sales, operating income and ordinary incomethat represent the results of its business activities. The Group considers enhancing its shareholders’equity ratio and reducing interest-bearing debts to strengthen its financial position and places emphasison and manages cash flows with great care.
(3) Medium- to long-term business strategies and issues to be addressed
The Unitika Group has formulated Change & Challenge 2014, its new medium-term, three-year
management plan, which will start from the fiscal year beginning April 1, 2012.
Although there are various uncertain factors that will affect the Company’s business performance, suchas cost pressures due to soaring crude oil prices, concerns over the shortage of electricity due to thesuspension of operations at nuclear power plants and foreign currency fluctuations, the Unitika Groupwill steadily implement measures based on the basic management policies of its new medium-term
management plan with the aim of establishing a solid business foundation. The basic management
policies include: (1) establishing a foundation as a functional material manufacturer [(i) promoting astrategy to expand mainly the polymer business and (ii) promoting a global strategy centering on the
Asian region], (2) improving the profitability of low-profit businesses and (3) strengthening of its
corporate structure and shareholders’ equity.
Here is a summary of the strategies and issues to be addressed for each business.
Polymers:
In the Films business, the Company will strengthen its strategy to increase its market share of the nylon
film Emblem in the fast-growing Asian markets and differentiate the product in the Chinese market, andpromote cultivation of new applications for industrial-use polyester films through quality improvement
and sales expansion of its high-value-added polyester films. In the Resins business, in particular, in thefield of nylon resins, the Company will accelerate commercialization of XecoT, a biomass-based highheat-resistant polyamide resin, by focusing on expansion of its use to automobiles and electrical andelectronics equipment applications. In regard to polyester resins, the Company will also try to increase
sales of ARROWBASE, an environmentally friendly water-based polyolefin cationic emulsion, anddevelop a new and ultrahigh functional grade of U-Polymer for injection molding applications. With
these efforts, the Company will aim to improve its profitability further. In the Non-Woven Fabrics
business, the Company will cooperate with its subsidiary in Thailand to promote sales of polyester
spunpond in overseas markets and expand sales of cotton spunlace through cultivation of new
applications for combined sheets. Concerning TERRAMAC, a biomass plastic, the Company has been
improving existing polylactic acids, specifically, its thermal resistance, durability and formability, andwill further strengthen the expansion of its use in each field.

-6-Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012

Advanced Materials:
The Company will focus on expansion of domestic sales and cultivation of overseas markets for highfunctional glass fiber products and aim to immediately improve the profitability of IC cloth by not only
raising the composition rate of high-value added products including ultra-thin IC cloth, but also
thoroughly reviewing its cost structure. Regarding glass beads, the Company will step up its efforts to
expand market share and cultivate new applications for its high-grade glass beads, mainly for industrial
applications. In the activated carbon fiber business, the Company will strengthen its overseas expansionof VOC removal sheets for automobile and waste water treatment applications, mainly in the Asianmarkets, including China, and cultivate potential fields, such as water purifiers built into faucets.
Fibers and Textiles:
In the Fibers and Textiles business, the Company will continue to shake up its product lineup andthoroughly reduce costs to establish a stable earnings structure. In the industrial materials business, theCompany will try to improve profitability by shifting to high-performance materials made of short-fiber
polyester and creating a sales structure to deal with the expansion of overseas markets for vinylon fiber
for reinforced concrete applications, including Asia, South America and Africa. In the Garments,
Lifestyle Materials, and Bedding business, the Company will strive to expand earnings from its global
activities by continuing to streamline its business operations, mainly Unitika Trading Co., Ltd., andenhancing cooperation with its bases in Indonesia, China and Vietnam.
Others and Healthcare & Amenity:
In the Healthcare & Amenity business, the Company will strengthen sales of functional dietary materials,
mainly its mainstay product, Konjac Ceramide, and new products, such as β-cryptoxanthin andLactobionic acid, and also cultivate new customers for its health food products, such as Byakugen Houou,
which is in strong demand, and creation of new products. In the Medical business, the Company willcontinue aiming at raising market share by strengthening sales of anti-thrombogenic catheters mainly forthe circulatory system and focusing on sales expansion of new products, and also developing new uses
for enzymes and clinical diagnostic reagents, cultivating new customers for these products, andpromoting thorough cost reductions.
With the growth of Asian markets including China, the Group will try to expand overseas sales offunctional materials mainly in the polymer and advanced materials fields through the following efforts:
continuing the installment of the most advanced nylon film manufacturing equipment at its Indonesia
subsidiary; setting up a subsidiary in Thailand for the Resins business, to provide sensor parts and small
encapsulation molding; and actively using overseas bases including China, Indonesia and Thailand.
The Company will develop biomass plastic, functional resins, and heat-resistant film, which are designed
to be used in electrical and electronics equipment and industrial fields, by making full use of both thepolymer design and control technologies and manufacturing and processing technologies that the Unitika
Group owns, mainly in the Polymer business.
In the fiscal year ending March 31, 2013, the Group will continue to streamline operations by thoroughly
reducing fixed and variable costs, and will also promote efficient management of funds including the
cutting back of inventories to reduce interest-bearing debt.

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Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012

3. Consolidated financial statements(1) Consolidated balance sheets(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2011)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures (net)
Machinery, equipment and vehicles (net)
Tools, furniture and fixtures (net)Land
Lease assets (net)
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Investments in capital
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets-8-

Current consolidated
fiscal year
(March 31, 2012)

16,78641,89846,615
1,136
3,377
(233)
109,580

15,361
39,88447,797
1,775
3,824
(217)
108,425

21,531
22,596
1,162
104,606
987
784
151,669

21,401
21,944
1,218
104,766
748
3,066
153,145

3
727
731

21
751
773

3,955
24
138
563
2,688
(609)
6,758
159,159
268,740

3,608
23
218
509
2,297
(515)
6,141
160,060
268,486

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012

(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2011)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Provision for bonuses
Provision for loss on construction contracts

24,95273,89337,480
408
325
1,160

Provision for business structure improvement
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for land revaluation
Provision for retirement benefits
Provision for directors’ retirement benefits
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment

Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets-9-

Current consolidated
fiscal year
(March 31, 2012)25,191
69,993
34,613
369
515
1,848
23


624
10,461
149,306

142
11,324
144,022

71,176657
10,815
2,571
5,651
71
2,512
93,456
242,762

68,601414
11,429
2,204
7,189
58
2,356
92,255236,278

23,798
1,661(1,943)(55)
23,46026,298
4,161
(646)
(55)
29,757

(49)
43
2,452
(3,569)(1,123)26
42,764(4,041)(1,245)

3,641
25,977
268,740

3,696
32,207
268,486

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012

(2) Consolidated income statement and consolidated comprehensive income statement(Consolidated income statement)(Unit: Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Rent income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
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
Business structure improvement expenses
Loss on abolishment of retirement benefit
plan
Other
Total extraordinary loss
Income before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income

Previous consolidated
fiscal year
(April 1, 2010 toMarch 31, 2011)
180,706
146,098
34,60724,093
10,513Current consolidated
fiscal year
(April 1, 2011 toMarch 31, 2012)
174,662
140,843
33,81924,239
9,579

180
102
90
38
1,013
1,425

154
104
70

3,544

- 10 -


1,066
1,395


1,164
1,110
5,819
6,119

3,265
224
970
760
5,220
5,753

299
299

164
164

424
698

531
2,792

13
2,761
3,898
2,519
375
(341)
34
2,485
40
2,444

299
434
4,057
1,861
533
12
545
1,315
18
1,297

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012

(Consolidated comprehensive income statement)(Unit: Millions of yen)

Income before minority interests
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

Previous consolidated
fiscal year
(April 1, 2010 toMarch 31, 2011)
2,485

Current consolidated
fiscal year
(April 1, 2011 toMarch 31, 2012)
1,315

380
39

76
(38)


(430)

368
(495)

(14)
(25)
2,460

(20)
(110)
1,205

2,513

1,174

(53)

30

Revaluation reserve for land
Foreign currency translation adjustment
Share of other comprehensive income ofassociates accounted for using equity
methodTotal other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable toowners of the parent
Comprehensive income attributable tominority interests- 11 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012

(3) Consolidated statements of changes in net assets
Previous consolidated
fiscal year
(April 1, 2010 toMarch 31, 2011)
Shareholders’ equity
Capital stock
Balance at the beginning of current period
Changes of items during the period
Issuance of new shares-exercise of subscription
rights to shares
Total changes of items during the period
Balance at the end of current period
Capital surplus
Balance at the beginning of current period
Changes of items during the period
Issuance of new shares-exercise of subscription
rights to shares
Total changes of items during period
Balance at the end of current period
Retained earnings
Balance at the beginning of current period
Changes of items during the period
Net income
Reversal of revaluation reserve for land
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the beginning of current period
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Total shareholders’ equity
Balance at the beginning of current period
Changes of items during the period
Issuance of new shares-exercise of subscription
rights to shares
Net income
Reversal of revaluation reserve for land
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Accumulated other comprehensive income(Unit: Millions of yen)
Current consolidated
fiscal year
(April 1, 2011 toMarch 31, 2012)

23,79823,798
23,7982,500
2,500
26,298

1,661

1,661



1,661

2,500
2,500
4,161

(4,734)(1,943)

2,444
347
(0)
2,791
(1,943)

1,297
(0)

1,297
(646)

(54)

(55)

(1)
0
(1)
(55)

(0)

(0)
(55)

20,67023,460


2,444
347
(1)
0
2,790
23,460

5,000
1,297
(0)
(0)

6,296
29,757

(429)

(49)

380
380
(49)

76
76
26

Valuation difference on available-for-sale securities

Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period- 12 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012

Previous consolidated
fiscal year
(April 1, 2010 toMarch 31, 2011)(Unit: Millions of yen)
Current consolidated
fiscal year
(April 1, 2011 toMarch 31, 2012)

3

43

39
39
43

(38)
(38)
4

2,799

2,452

(347)

(347)
2,452

0
311
311
2,764

Balance at the beginning of current period(3,219)(3,569)Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period

(350)
(350)
(3,569)

(471)
(471)
(4,041)(846)(1,123)

(347)
69
(277)
(1,123)

0
(122)
(122)
(1,245)

3,695

3,641

(54)
(54)
3,641

55
55
3,696

23,51925,977


2,444
(1)
0
14

5,000
1,297
(0)

(66)

Deferred gains or losses on hedges

Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Revaluation reserve for land

Balance at the beginning of current period
Changes of items during the period
Reversal of revaluation reserve for land
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Foreign currency translation adjustment

Total accumulated other comprehensive income
Balance at the beginning of current period
Changes of items during the period
Reversal of revaluation reserve for land
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Minority interests

Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Total net assets

Balance at the beginning of current period
Changes of items during the period

Issuance of new shares-exercise of subscription rights toshares
Net income
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period- 13 -

2,457

6,230

25,97732,207

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012

(4) Consolidated statements of cash flow
(Unit: Millions of yen)Previous consolidated
fiscal year
(April 1, 2010 toMarch 31, 2011)

Current consolidated
fiscal year
(April 1, 2011 toMarch 31, 2012)

Net cash provided by (used in) operating activities

Income before income taxes and minority interests

2,519

1,861

Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for business structure improvement
Increase (decrease) in other provisionInterest expenses
Loss (gain) on disposal of noncurrent assets
Loss (gain) on sales of noncurrent assets
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other,net
Sub-total

6,275
127
1,352
(493)
(52)
3,544
424
(299)
(2,677)
2,112
127
671
13,634

5,899
(102)
1,551
(482)
700
3,265
531
(164)
1,870
(1,339)303
345
14,239Interest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities532(3,516)(233)
10,416272(3,310)(402)
10,798

(158)
(20)
744
(4,176)857(205)(2,959)

175
(42)
86
(7,713)211(165)(7,449)(3,444)24,756(31,322)


(3,558)31,340(36,748)
5,000

(400)

Net cash provided by (used in) investing 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
Net cash provided by (used in) investing 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
Proceeds from issuance of convertible bond-type bonds with
subscription rights to shares
Redemption of bonds

(434)


(425)

(10,844)(4,393)

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(183)(3,571)
20,160(205)(1,250)16,589Cash and cash equivalents at the end of the current fiscal year

16,58915,339Other,net
Net cash provided by (used in) financing activities- 14 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012(5) Notes regarding assumption of a going concern
Not applicable(6) Significant items that are the basis for preparation of consolidated financial statements
1. Scope of consolidation
The Company has 47 consolidated subsidiaries and two non-consolidated subsidiaries as of the end of
the current period under review. Major consolidated subsidiaries are Nippon Ester Co., Ltd. and Unitika
Trading Co., Ltd. Total assets, net sales, net income/loss (corresponding to equity interest) and retained
earnings (corresponding to equity interest) of the two non-consolidated subsidiaries (Akoh Unitec
Service Co., Ltd., etc.) are small in value and do not significantly influence the consolidated financial
statements. The number of consolidated subsidiaries decreased by one from the end of the previous
period due to the establishment of one company and the liquidation of two companies.
2. Application of the equity method
The Company applies the equity method to the two non-consolidated subsidiaries and three affiliatedcompanies (Ador Co., Ltd. and others) as of the end of the current period under review. The number of
non-consolidated subsidiaries decreased by three from the end of the previous period due to liquidation.
The number of affiliated companies increased by one from the end of the previous period due to theestablishment of a joint-venture company.
3. Account settlement date, etc. of consolidated subsidiaries
Among the consolidated subsidiaries, Thai Nylon Co., Ltd., Unitika America Corp., Unitika (Shanghai)Ltd., Emblem Asia Co., Ltd., Unitika Emblem China Ltd., Unitika Do Brasil LLC, Brascot LLC,
Unitika (Beijing) LLC, Unitex Co., Ltd. and Unitika Plastic (Thailand) Ltd. settle their accounts on
December 31, and Unitika Hong Kong Ltd. settles its accounts on February 29. For the purpose of
preparing the consolidated financial statements, the financial statements for the respective accountsettlement dates are used, and any necessary adjustments are made with regard to significant transactions
conducted during the period between the relevant settlement date and the current consolidation date. It
should be noted that TUSCO Co., Ltd. changed its account settlement date to March 31 (the same as theconsolidated settlement date) from the current consolidated fiscal year, reporting results for a 15-month
period.
4. Accounting standards(1) Evaluation standards and method for significant assets
Marketable securities
Other marketable securities
With market values:

Valued at fair value based on market values, etc. on the settlement
date (variance from valuation is processed with the method entirely
to charge or credit directly to equity, and selling cost is calculatedusing the moving average method.)
Without market values: Valued at cost using the moving average method
Derivatives
Valued at fair value
Inventories
Valued primarily at cost by using the moving average method (the balance sheet value iscalculated by the book value written-down method based on decline in profitability.)- 15 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012

(2) Depreciation method for significant depreciable assets
Tangible fixed assets (excluding lease assets)
The Company and its consolidated subsidiaries primarily use the declining-balance method.
However, some consolidated subsidiaries use the straight-line method.
Intangible fixed assets (excluding lease assets)
Straight-line method
Lease assets
Lease assets under finance lease transactions that do not transfer ownership
Lease assets are depreciated using the straight-line method over the lease term, based on theassumption that the residual value is equal to zero.
(3) Accounting standards for important allowances
Allowance for doubtful receivables
In order to cover losses from uncollectible account receivables, the Company provides for
estimated uncollectible amount of normal receivables based on historical loss ratios. Specificclaims including doubtful receivables, etc. are individually evaluated for the likelihood ofrecovery and estimated uncollectible amount is provided.
Provision for bonuses
The Company provides for allowance for bonus based on the estimated amount of the payment
for employees.
Provision for loss on construction contracts
The Company has provided for reasonably estimated losses to be incurred in the next
consolidated fiscal year to prepare for anticipated losses on construction contracts.
Provision for business structure improvement
The Company provides for reasonably estimated amount of loss incurred in the next
consolidated fiscal year due to implementation of a business structure improvement program.
Allowance for retirement benefits

To cover payment of retirement benefits to employees, the Company provides for
retirement benefits based on the estimated amount of the retirement benefit obligationand the trust estate related to retirement benefit obligation (regarding some consolidated
subsidiaries, the retirement benefit obligation and pension assets) at the end of the fiscal
year ended March 31, 2012.
The transition difference due to a change in the accounting standards is equallyexpensed over 15 years.
The past service liabilities are amortized using the straight-line method over the averageremaining years of service of employees (generally 13 years) when the liability is
incurred.
Actuarial gains and losses are expensed using the straight-line method over the averageremaining years of service of employees (generally 13 years), allocated starting fromthe year each respective gain or loss is incurred.

- 16 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012

Allowance for directors’ retirement bonuses
In the past, the Company and its consolidated subsidiaries provided for the amount payable atthe end of the subject term under the internal rule to cover payment of retirement bonuses todirectors (including executive officers). However, the Company and its consolidated
subsidiaries abolished the directors’ retirement bonus system in June 2006 and suspended thetransfer of such amount to allowance for directors’ retirement bonuses.
(4) Accounting standards for recognizing revenues and costs of construction contracts
The percentage-of-completion method has been applied to construction contracts if the outcome of
the construction activity is deemed certain on March 31, 2012 (the estimated percentage ofcompletion shall be based on the ratio of the cost incurred to the estimated total cost). The
completed-contract method has been applied to other construction contracts.
(5) Standards for translating important foreign currency assets or liabilities to Japanese currency
Foreign currency monetary assets and liabilities are converted into yen currency at the spot exchange
rate of the consolidated settlement date and exchange differences are treated as profit or loss.
Meanwhile, the assets and liabilities of overseas subsidiaries are converted into yen currency by the
spot exchange rate of the settlement date, and profits and expenses are converted into yen currency at
the average market rate during the period with the exchange differences included in the currency
exchange translation adjustment and minority interests.
(6) Interest relating to property for sale (inventories)
Interests paid in relation to some real estate for sale in progress among the real estate for sale held bysome consolidated subsidiaries are included in the acquisition amount of such real estate.
(7) Important hedge accounting method
The Company adopts deferred hedge accounting, and uses the method for translating foreign
currency receivables and payables on the basis of yen value cash flow fixed by forward contract for
exchange contracts that may satisfy requirements for the said method, and preferential procedures forinterest rate swaps that may satisfy requirements for preferential procedures.
(8) Items relating to amortization of goodwill
Goodwill is amortized using the straight-line method over 5 years.
(9) Scope of funds in consolidated statements of cash flows
Funds (cash and cash equivalents) stated in the consolidated statements of cash flows consist of cashon hand, demand deposits and short-term investments that are readily convertible into cash, areexposed to insignificant risk of changes in value and are redeemable in 3 months or less from eachacquisition date.
(10) Treatment of consumption taxes, etc.
The Company adopts the tax-excluding method.

- 17 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012

(7) Additional information(Adoption of accounting standards concerning accounting changes and error corrections)Due to accounting changes and corrections of prior period errors that are conducted after the beginning of
the fiscal year ending March 31, 2012, the Company has adopted the Accounting Standard for Accounting
Changes and Error Corrections (ASBJ Statement No. 24, issued on December 4, 2009) and Guidance on
Accounting Standard for Accounting Changes and Error Corrections (ASBJ Guidance No. 24, issued on
December 4, 2009).
(8) Notes on consolidated financial statements(Segment information etc.)
Segment information
1. Summary of reportable segment
Unitika’s reportable segments are components of the Company for which separate financial
information is available. These segments are subject to regular reviews by the Board of Directors todecide the distribution of managerial resources and evaluate business results.
The Company sets up divisions by product and service in its head office. Each division formulates
comprehensive domestic and overseas strategies for its products and services and conducts businessactivities according to the strategies.
Unitika consists of segments by product and service based on divisions. The following three are its
reportable segments: Polymers, Advanced Materials, and Fibers & Textiles.
The Polymers segment manufactures and markets films, resins, and non-woven fabrics. The
Advanced Materials segment makes and sells glass fibers. The Fibers & Textiles produces anddistributes various types of fibers (threads, cotton, textiles and fabrics and the like).
2. Methods to calculate the amount of net sales, profit or loss, assets and other items by reportablesegment
Methods of accounting treatment of reported business segments are almost the same as those statedin the Significant items that are the basis for preparation of consolidated financial statements.
Inter-segment earnings and transfers are based on prevailing market prices.
3. Information on the amount of net sales, profit or loss, assets and other items by reportable segment
The previous fiscal year (April 1, 2010 to March 31, 2011)(Unit: Millions of yen)
Reportable segment

Polymers

Advanced
Materials

Fibers &Textiles

Other(Note 1)
Total

Total

Amountposted inConsoliAdjustment
dated(Note 2)
financialstatements(Note 3)

Net sales
Net sales to outside
customers
67,016
14,931
77,095
159,043
21,662
180,706

180,706
Inter-segment sales ortransfer
39
20
212
272
1,661
1,933
(1,933)

Total
67,055
14,95177,308159,315
23,324
182,640(1,933)
180,706
Segment income
10,5501,771
840
13,161
952
14,114(3,600)10,513
Segment assets
89,712
18,66375,341
183,71751,069234,786
33,953
268,740
Other items
Depreciation andamortization
2,615
659
1,762
5,037
925
5,963
312
6,275
Increase in property, plantand equipment andintangible assets
1,644
369
804
2,818
1,189
4,008
709
4,717
(Note) 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 thelike.
2. Adjustment details are as follows.
(1) Adjustment of－3,600 million yen posted in segment income (loss) includes corporate expenses that are notdistributed to each reportable segment.
(2) Adjustment of 33,953 million yen posted in segment assets include investment of surplus funds (cash and- 18 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012
deposits) by the parent company, long-term investment funds (investment securities) and assets, etc. related to the
Administration and the Research and Development Division of the parent company.
(3) Adjustment of 312 million yen posted in depreciation and amortization is depreciation and amortization ofcommon assets that are not distributed to each reportable segment.
(4) Adjustment of 709 million yen posted in increase in property, plant and equipment and intangible assets is anincrease in common assets that are not distributed to each reportable segment.
3. Segment income (loss) is adjusted with operating income presented in consolidated income statement.

Current consolidated fiscal year (April 1, 2011 to March 31, 2012)(Unit: Millions of yen)
Reportable segment

Polymers

Advanced
Materials

Fibers &Textiles

Other(Note 1)
Total

Total

Amountposted inConsoliAdjustment
dated(Note 2)
financialstatements(Note 3)

Net sales
Net sales to outside
customers
67,29415,02076,701
159,016
15,646
174,662
174,662Inter-segment sales ortransfer
18
50
266
334
2,114
2,449
(2,449)
Total
67,312
15,07076,967
159,351
17,760177,111(2,449)174,662
Segment income
9,615
1,731
744
12,091751
12,843(3,263)
9,579
Segment assets
89,111
20,75876,701
186,571
51,222
237,793
30,692
268,486
Other items
Depreciation andamortization
2,565
641
1,502
4,709
877
5,586
312
5,899
Increase in property, plantand equipment andintangible assets
4,606
588
994
6,189
1,291
7,480
822
8,302
(Note) 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 thelike.
2. Adjustment details are as follows.
(1) Adjustment of －3,263 million yen posted in segment income (loss) includes corporate expenses that are notdistributed to each reportable segment.
(2) Adjustment of 30,692 million yen posted in segment assets include investment of surplus funds (cash anddeposits) by the parent company, long-term investment funds (investment securities) and assets, etc. related to the
Administration and the Research and Development Division of the parent company.
(3) Adjustment of 312 million yen posted in depreciation and amortization is depreciation and amortization ofcommon assets that are not distributed to each reportable segment.
(4) Adjustment of 822 million yen posted in increase in property, plant and equipment and intangible assets is anincrease in common assets that are not distributed to each reportable segment.
3. Segment income (loss) is adjusted with operating income presented in consolidated income statement.

- 19 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012

(Per share information)
Previous consolidated fiscal year
(April 1, 2010 to March 31, 2011)
Net assets per share: 46.98 yen
Net income per share: 5.14 yen

Current consolidated fiscal year
(April 1, 2011 to March 31, 2012)
Net assets per share: 49.81 yen
Net income per share: 2.35 yen

Information on net income per share after full dilution
Net income per share after full dilution: 2.28 yen
is omitted, since there is no potential common stock.
(Note) The basis for the calculation of net income per share and net income per share after full dilution is as follows:
Previous
Current
consolidated
consolidated
fiscal year
fiscal year
(April 1, 2010 to (April 1, 2011 toMarch 31, 2011) March 31, 2012)
Net income per share
Net income (million yen)
2,444
1,297
Amount not attributable to common stockholders (million yen)
Net income attributable to common stock (million yen)
2,444
1,297
Average number of common stock during the fiscal year (thousand shares)
475,415552,192
Net income per share after full dilution
Net income adjustment value (million yen)
Increase in number of outstanding common shares (thousand shares)
16,651

Summary of issuable shares not included in the computation of net income
per share after full dilution, since these securities are not dilutive.

(Material subsequent events)
Unitika Ltd. is pleased to announce that the Board of Directors at its meeting held on February 6, 2012resolved to implement a share exchange (Share Exchange) between the Company as a wholly-owningparent company and Terabo Co., Ltd. (Terabo) as a wholly-owned subsidiary with an effective date of May
1, 2012. On May 1, 2012 the Company implemented the Share Exchange based on the share exchange
agreement made between the Company and Terabo on February 6, 2012.
1. Purpose of making Terabo a wholly-owned subsidiary through the Share Exchange
The purpose is to further enhance the strategic unity and mobility of the Unitika Group, making the bestuse of the Group’s management resources.
2. Share Exchange Method
Under the Share Exchange agreement, the Company will become a wholly-owning parent company andTerabo will become a wholly-owned subsidiary. The Company implemented the Share Exchange byfollowing the procedures for a simplified share exchange as provided for under paragraph 3 of Article
796 of the Companies Act.
3. Outline of the Share Exchange
Company name
Allotment ratio in the Share
Exchange

Unitika Ltd.
(Wholly-owning parent company
in the Share Exchange)

Terabo Co., Ltd.
(Wholly-owned subsidiarycompany in the Share Exchange)

1

1.46

Upon implementation of the Share Exchange, the Company allotted a total of 4,963,109 shares of common
stock of the Company (400,000 shares from treasury stock it owns and a newly issued 4,563,109 shares) to
Terabo’s shareholders as of May 1, 2012. Due to the new issuance of common stock of the Company, theCompany saw its legal capital surplus increase by 223 million yen. Meanwhile, the stock of Terabo wasdelisted from the Osaka Securities Exchange as of April 25, 2012.

- 20 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012

4. OtherTransfer of directors
As of June 28, 2012
1. Candidates for position of director
Kenji Yasue (reappointment; current President, Chief Executive Officer)
Hiroyuki Shime (reappointment; current Director, Senior Executive Officer, Operation Division)
Shuji Ueno (new appointment; current Executive Officer, Director of Technology Development
Division, General Manager of Central Research Laboratory)
2. Candidate for position of auditor
Toru Hanbayashi (reappointment; current Auditor (part-time)) (Scheduled to work as a part-time
auditor)(Note) Toru Hanbayashi is a candidate for the position of external auditor.

Career summary of candidate for position of director
Shuji Ueno (Date of birth: December 8, 1957)
Employment history

April 1983
July 2000
April 2003
May 2008
January 2009
June 2011

Joined Unitika, Ltd.
Manager of Metallic Fiber Development Division
Manager of Executive Office IR & PR Group
Deputy General Manager of Corporate Planning
Department
Deputy General Manager of Corporate Development
Department
Executive Officer, Director of Technology Development
Division and General Manager of Central ResearchLaboratory- 21 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012

5. Supplementary materials(1) Results and earnings forecast for fiscal year ending March 2013 (consolidated)

Consolidated

FY ended
March 2011
FY ended
March 2012
FY endingMarch 2013
Comparison
with prioryear(Millions of yen)
Ordinary
Net income
incomeNet sales

OperatingincomeFull year

180,706

10,513

6,119

2,444

Q2
Full year
Q2 (forecast)
Full year (forecast)
Q2 (forecast)

87,075
174,662
83,500175,000(3,575)

4,888
9,579
3,500
9,000
(1,388)

2,594
5,753
2,000
6,000
(594)

1,039
1,297
300
2,000
(739)

Full year (forecast)

338

(579)

247

703

(2) Segment information (consolidated)(Millions of yen)

Net sales to outside
customers
FY ended
Component ratio (%)
March 2011
Operating income
Component ratio (%)
Net sales to outside
customers
Results for
FY ended
Component ratio (%)
current fiscal
March 2012
year
Operating income
Component ratio (%)
Net sales to outside
customers
Increase/decrease
Comparison with prior year from prior year (%)
Operating income
Increase/decrease
from prior year (%)
Net sales to outside
customers(forecast) Component ratio (%)
Operating income
Component ratio (%)
FY ending
Net sales to outside
March 2013
customers(forecast)
Increase/decrease
Comparison from prior year (%)
Operating income
Increase/decrease
from prior year (%)
Results forprior fiscal
year

Elimination
Consolidatedor
total
corporate

Polymers

Advanced
Materials

Fibers &Textiles

67,016

14,931

77,095

21,662



180,706

37.1
10,550
100.4

8.3
1,771
16.8

42.7
840
8.0

12.0
952
9.1


(3,600)(34.2)

100.0
10,513100.0

67,29415,02076,701

15,646



174,662

38.5
9,615
100.4

8.6
1,731
18.1

43.9
744
7.8

9.0
751
7.8


(3,263)(34.1)

100.0
9,579
100.0

278

89

(394)

(6,016)(6,044)

0.4

0.6

(0.5)

(27.8)



(3.3)

(935)

(40)

(96)

(201)

337

(934)

(8.9)

(2.3)

(11.4)(21.1)

(9.4)

(8.9)

69,00015,50074,00016,500

175,000

39.4
9,500
105.6

8.9
1,700
18.9

42.3
900
10.0

9.4
900
10.0


(4,000)(44.4)

100.0
9,000
100.0

1,706

480

(2,701)

854



338

2.5

3.2

(3.5)

5.5



0.2

(115)

(31)

156

149

(737)

(579)

(1.2)

(1.8)

21.0

19.8

22.6

(6.1)

- 22 -

Other

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2012

(3) Capital expenditures, Depreciation (Property, plant and equipment), R&D expenditures, Interest-bearing liabilities,
Financial account balance, Number of full-time employees (consolidated)(¥ million, persons)

FY ended
March 2010
FY ended
March 2011
FY ended
March 2012
FY endingMarch 2013

Capitalexpenditures

Depreciation(Property,
plant andequipment)

R&D
expenditures

Interest-bearing
liabilities (endof fiscal year)

Financialaccountbalance

Number offull-time
employees(persons)

Full year

3,566

6,592

3,866

193,380(3,438)

5,037

Full year

4,437

6,106

3,615

182,550(3,261)

4,845

Full year

8,105

5,730

4,012

173,208(3,006)

4,745

Full year(forecast)

6,031

5,574

(4) Cash flow (consolidated)(Millions of yen)
Cash flowfromoperatingactivities

FY ended
Full year
March 2010
FY ended
Full year
March 2011
FY ended
Full year
March 2012

Cash flowfrominvestment
activities

Cash flowfromfinancing
activities

Cash and cash equivalents at
end of fiscal year

14,286(2,683)(1,175)

20,16010,416(2,959)(10,844)

16,58910,798(7,449)(4,393)

15,339- 23 -