Member of Financial Accounting Standards Foundation

Financial Results for the 1st nine-month period of the Fiscal Year Ending March 31, 2011
February 4, 2011
Listed stock exchanges: Tokyo Stock Exchange, Osaka Securities Exchange
Company name: Unitika Ltd.
Code number: 3103
URL: http://www.unitika.co.jp/e/Representative: Kenji Yasue, President and Chief Executive Officer
Contact: Shoji Ishikawa, General Manager of Accounting Department
TEL: +81-6-6281-5721
Expected submission of quarterly report: February 10, 2011
Expected commencement date for paying dividend: –Preparation of supplementary explanation documents for quarterly financial results: No
Holding of an analyst meeting for quarterly financial results: No(Figures rounded to nearest million yen.)
1. Consolidated performance for 1st nine-month period of fiscal year ending March 31, 2011 (April 1, 2010 to December 31, 2010)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales

1st nine-month period of FY ending
March 31, 2011
1st nine-month period of FY ended
March 31, 2010

Operating income%(1.0)(15.0)

Millions of yen

132,595
133,951

Millions of yen

7,265
6,198

Quarterly net income per share

Ordinary income

%
17.2
36.8

Millions of yen

3,898
3,255

Millions of yen

2,279
459

%
396.0

Quarterly net income per share after full dilution

Yen
4.79
0.97

1st nine-month period of FY ending
March 31, 2011
1st nine-month period of FY ended
March 31, 2010

%
19.7
107.4

Quarterly net income

Yen-(2) Consolidated financial situation
Total assets
1st nine-month period of FY ending
March 31, 2011
FY ended March 31, 2010

(Reference) Shareholders’ equity

Net assets

Millions of yen
276,432
277,196

Capital adequacy ratio

Millions of yen
25,792
23,519Net assets per share

%
8.0
7.2

Yen
46.56
41.70

1st nine-month period of fiscal year ending March 31, 2011: 22,134 million yen
Fiscal year ended March 31, 2010: 19,823 million yen

2. Dividend payment
Dividends per share(Base date)

End of Q1

End of Q2

FY ended March 31, 2010
FY ending March 31, 2011

End of Q3
Yen
0.00

Yen
-

Year end
Yen

-

0.00

Annual
Yen
0.00

Yen
0.00

0.00

0.00

-

FY ending March 31, 2011 (forecast)-(Note) Revision of dividend forecast for the current quarter: No
3. Forecast of consolidated performance for fiscal year ending March 31, 2011 (April 1, 2010 to March 31, 2011)(% figures represent changes from same period in previous year.)Net sales

FY ending March 31, 2011

Operating income

Ordinary income

Net income pershare

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

190,000

4.3

11,500

34.6

7,000

56.4

6,000

97.6

12.62

(Note) Revision of forecast of consolidated performance in the current quarter: No

Member of Financial Accounting Standards Foundation

4. Others (For details, please refer to 2. Other Information on page 3 of the attachment.)(1) Changes in significant subsidiaries during the period: No(Note) Changes in specified subsidiaries accompanying change of scope of consolidation during the period(2) Application of simplified accounting treatment and specific accounting treatment: Yes(Note) Application of simplified accounting treatment and specific accounting treatment to prepare consolidated quarterly
financial statements(3) Change in accounting principles, procedures and method of presentation
 Changes associated with revision in accounting standards: Yes
 Changes other than : No(Note) Changes in accounting principles, procedures and method of presentation for preparation of consolidated quarterly
financial statements described in Changes in Basic Important Matters for Preparation of Consolidated Quarterly
Financial Statements(4) Number of shares outstanding (Common stock) Number of shares outstanding at end of term (including treasury stock):
1st nine-month period of the fiscal year ending March 31, 2011: 475,969,000 sharesFiscal year ended March 31, 2010: 475,969,000 shares Number of treasury stocks at end of term
1st nine-month period of the fiscal year ending March 31, 2011: 560,273 sharesFiscal year ended March 31, 2010: 546,728 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
1st nine-month period of the fiscal year ending March 31, 2011: 475,418,244 shares
1st nine-month period of the fiscal year ended March 31, 2010: 475,530,620 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 performance forecasting, etc., are based on currently available
information and assumptions considered reasonable by the company. Actual performance may differ significantly from the forecast
due to various factors. Concerning assumptions used as a basis for forecasting business performance and precautionary statements
when using the forecast, please refer to 1. Qualitative Information on Quarterly Consolidated Performance, (3) Qualitative
Information on the Forecast of Consolidated Performance on page 3 of the attachment.

Member of Financial Accounting Standards Foundation〇 Table of contents for the attachment

1. Qualitative Information on Quarterly Consolidated Performance(1) Qualitative information on consolidated performance(2) Qualitative information on consolidated financial positions(3) Qualitative information on the forecast of consolidated performance
2. Other Information(1) Changes in significant subsidiaries(2) Summary of simplified accounting method and special accounting practices(3) Summary of changes in accounting principles, procedures and presentations
3. Quarterly financial statements(1) Consolidated quarterly balance sheets(2) Consolidated quarterly statements of income(3) Consolidated quarterly statements of cash flows(4) Notes on going concern assumption(5) Segment information(6) Notes on significant changes in the amount of shareholders’ equity

-1-

2
2
3
3
3
3
3
3
4
4
6
7
8
8
8

Unitika Ltd. (3103)

Financial Results for the 1st Nine-Month Period of the Fiscal Year Ending March 31, 2011

1. Qualitative Information on Quarterly Consolidated Performance(1) Qualitative information on consolidated performance
In the first nine-month period of fiscal year 2010 (April 1, 2010 to December 31, 2010), demand in
emerging countries, primarily China, led the recovery of the global economy, while the outlook for theJapanese economy remained uncertain due to the contraction of economic stimulus measures in addition
to the yen’s appreciation and lingering deflationary pressures. Under such an environment, management
saw profits were on an upward trend against the backdrop of reviewing business operation in divisions
being revamped and a recovery of sales. Consequently, the Group reported net sales of 132,595 million
yen (down 1.0% year-on-year), operating income of 7,265 million yen (up 17.2% year-on-year),ordinary income of 3,898 million yen (up 19.7% year-on-year), and net income of 2,279 million yen (up396.0% year-on-year).
Here is a summary of the business by segment.

[Polymers]
In the film business, shipment of package films picked up due to market recovery, but sales ofindustrial-use films, which had been strong thanks to steady demand from the electronic component
field, slowed down slightly. The film business as a whole remained robust. In the resins business, sales
for some particular materials and applications stagnated in the automobile and electric & electronics
fields, but the resin business as a whole was strong. In the nonwoven fabrics business, sales of
spunbond products including the automobile field remained relatively steady and sales of cotton
spunlace continued to expand, because demand from the cosmetics field kept growing. In addition, we
actively promoted marketing of Terramac, a biomass-based plastic, in the film, plastic, nonwoven
fabrics, and textile fields with generally good results.

[Advanced Materials]
In the glass fiber business, sales for building materials, civil engineering, and automobile use remainedsluggish due to a decrease in new projects, but those for environmental protection use continued steady.
In the IC cloth business, demand in overseas markets was strong, but the domestic demand remained
weak due to a delayed market recovery, cutting into profitability. Sales of activated carbon fibers for use
in waste liquid treatment and removal of VOC pollutants from automobile emissions remained strong.
Sales of glass beads for industrial use were sluggish, but those for road construction use and reflective
materials use were robust.

[Fibers & Textiles]
In the industrial fibers and textiles business, we struggled to maintain profitability of vinylon fibers
because of intensified price competition and the yen’s appreciation, although sales volume increased
thanks to our efforts to cultivate new applications in emerging markets to make up for sluggish sales in
Europe. Sales of both highly resistant polyester thread for building and civil engineering use andshort-fiber polyester for nonwoven fabrics use continued to be strong. In the garment fibers and textiles
business, sales of uniforms, mainly for offices and factories, picked up against the backdrop of a decline
in inventories in the distribution channel. In addition, profitability of functional materials for inner andsportswear use and materials for women’s clothing improved due to market recovery.
[Others]
In the environment business, difficult order situations continued because public works spending andprivate-sector capital investment remained sluggish. Under such conditions, profitability of theenvironment plant-related project improved due to further implementation of thorough cost reduction
measures. However, sales of the environment survey and analysis-related projects stagnated due to pricecompetition. In the medical business, the market share of catheters for the circulatory system jumped;
sales of new products grew steadily; and shipment of enzymes and clinical diagnostic reagents remainedrobust. In the health & amenity business, sales of functional dietary materials, such as Ceramide andL-arabinose, maintained momentum, whereas revenue in the real estate-related business decreased due
to delay in the completion of a new condominium project.
-- 2 --

Unitika Ltd. (3103)

Financial Results for the 1st Nine-Month Period of the Fiscal Year Ending March 31, 2011(2) Qualitative information on consolidated financial positions
Total assets decreased by 764 million yen from the end of the previous fiscal year to 276,432 million
yen. This was mainly due to a decrease in cash and deposits and property, plant and equipment despite
an increase in notes and accounts receivable-trade. Liabilities declined by 3,036 million yen from theend of the previous fiscal year to 250,640 million yen. This was mainly due to a decrease in loans
payable. Net assets increased by 2,272 million yen from the end of the previous fiscal year to 25,792
million yen. This was mainly attributable to an increase in retained earnings.
Here is a summary of the cash flow situation.
(Net cash provided by [used in] operating activities)
In the first nine month period of the fiscal year ending March 31, 2011, net cash provided byoperating activities amounted to 758 million yen (net cash of 6,078 million yen used during the same
period last year) due to cash inflow, the sum of income before income taxes and depreciation.
(Net cash provided by [used in] investment activities)
Net cash used in investment activities amounted to 2,441 million yen (net cash of 2,320 million yen
used during the same period last year) due to capital expenditures of 3,039million yen during thefirst nine-month period of the fiscal year ending March 31, 2011.
(Net cash provided by [used in] financing activities)
Net cash used in financing activities amounted to 3,520 million yen (net cash of 6,820 million yen
provided during the same period last year) due to reduction of interest-bearing liabilities during thefirst nine-month period of the fiscal year ending March 31, 2011.
Consequently, cash and cash equivalents at the end of the first nine-month period of the fiscal year
ending March 31, 2011 decreased 5,359 million yen from the end of the previous fiscal year to 14,801
million yen.
(3) Qualitative information on the forecast of consolidated performance
Since the performance for the first nine-month period of the fiscal year ending March 31, 2011 wasalmost in line with the plan, the company did not revise its full-year forecasts of consolidated
performance announced on May 14, 2010.
2. Other Information(1) Changes in significant subsidiaries
Not applicable(2) Summary of simplified accounting method and special accounting practices
In computing corporate income taxes, some consolidated subsidiaries took only major items into
account regarding additions and deductions for income and tax credits.
(3) Summary of changes in accounting principles, procedures and presentations(Changes in accounting principles and procedures)
Effective from the first quarter of the fiscal year ending March 31, 2011, Accounting Standards for
Asset Retirement Obligations (ASBJ Statement No. 18, issued March 31, 2008) and Guidance on
Accounting Standards for Asset Retirement Obligations (ASBJ Guidance No. 21, issued March 31,2008) have been applied. Consequently, operating income, ordinary income, and net income before
income taxes decreased by 9 million yen, 13 million yen, and 164 million yen, respectively, in the
consolidated first nine-month period of fiscal year 2010.
(Change in presentation of financial statements)
Consolidated statements of cash flow
Gain (loss) on sales of investment securities, which is stated in net cash from operating activities, isincluded in Other, net in the consolidated first nine-month period of fiscal year 2010, because its
quantitative materiality diminished. Gain (loss) on sales of investment securities included in Other, net
is 1 million yen in the aforementioned period.
Meanwhile, Cash dividends paid, which is stated in net cash from financing activities, is included in
Other, net in the consolidated first nine-month period of fiscal year 2010, because its quantitative
materiality diminished. Cash dividends paid included in Other, net is 0 million yen in the
aforementioned period.
-- 3 --

Unitika Ltd. (3103)

Financial Results for the 1st Nine-Month Period of the Fiscal Year Ending March 31, 2011

3. Quarterly financial statements(1) Consolidated quarterly balance sheets
End of 1st nine-month period of
FY ending March 2011
(December 31, 2010)(Unit: Millions of yen)
Condensed consolidatedbalance sheet for previous FY(March 31, 2010)

15,004
48,17527,005
16,449
4,313
4,556
(223)
115,281

20,19939,361
28,262
16,676
3,920
5,336
(175)
113,581

104,570
47,830152,400

104,452
50,280154,732

25
630
655

90
630
720

8,746
(651)
8,094
161,151
276,432

8,741
(579)
8,161
163,615
277,196

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Land
Other,net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets-- 4 --

Unitika Ltd. (3103)

Financial Results for the 1st Nine-Month Period of the Fiscal Year Ending March 31, 2011

End of 1st nine-month period of
FY ending March 2011
(December 31, 2010)(Unit: Millions of yen)
Condensed consolidatedbalance sheet for previous FY(March 31, 2010)

25,886
71,93937,426
200
425
638
16
23

24,971
77,66831,436
400
322
1,085
1
29

711
11,467
148,735

1,118
11,597
148,631

80,323
5,475
71
16,033
101,904
250,640

83,875
4,318
170
16,681
105,045
253,676

23,798
1,661(2,108)(55)
23,29523,798
1,661(4,734)(54)
20,670

(159)

(429)

(6)
2,452
(3,447)

3
2,799(3,219)(1,160)3,657
25,792
276,432

(846)
3,695
23,519277,196

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds
Income taxes payable
Provision for bonuses
Provision for loss on construction contracts
Provision for warranties for completed
construction
Provision for business structure improvement
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Provision for directors’ retirement benefits
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets-- 5 --

Unitika Ltd. (3103)

Financial Results for the 1st Nine-Month Period of the Fiscal Year Ending March 31, 2011

(2) Consolidated quarterly statements of income(Six-month period ended September 30, 2010)

1st nine-month period ended
December 31, 2009
(April 1, 2009 to
December 31, 2009)(Unit: Millions of yen)
1st nine-month period ended
December 31, 2010
(April 1, 2010 to
December 31, 2010)

133,951
108,614
25,337
19,138132,595
107,156
25,43818,172

6,198

7,265

138
99
184
30
1,206
1,659

141
99
41
760
1,043

2,756
912
933
4,602
3,255

2,695
868
847
4,411
3,898

17
108
126

293

733

349
677
242
716
1,986
2,205
433
(535)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Gain on sales of investment securities
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other personal expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Compensation income for expropriation
Total extraordinary income
Extraordinary loss
Loss on disposal of noncurrent assets
Loss on valuation of investment securities
Business structure improvement expenses
Other
Total extraordinary loss
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income

204
498
1,263
2,700
680
333
(129)
203


17
459

-- 6 --




293

(101)
2,307
28
2,279

Unitika Ltd. (3103)

Financial Results for the 1st Nine-Month Period of the Fiscal Year Ending March 31, 2011

(3) Consolidated quarterly statements of cash flows(Unit: Millions of yen)
1st nine-month period ended
December 31, 2009
(April 1, 2009 to
December 31, 2009)

1st nine-month period ended
December 31, 2010
(April 1, 2010 to
December 31, 2010)

680

2,205

5,017

4,662

Increase (decrease) in allowance for doubtful
accounts

273

151

Increase (decrease) in provision for businessstructure improvement(2,001)(407)

Interest expenses

2,756

2,695

Loss (gain) on sales of investment securities

(184)



Decrease (increase) in notes and accounts
receivable-trade(1,348)(8,921)

Decrease (increase) in inventories

8,223

1,000

Increase (decrease) in notes and accounts
payable-trade(2,955)

1,022

Other, net

(673)

693

Subtotal

9,789

3,101

253

492

(2,524)(2,480)

Income taxes paid

(680)

(355)

Net cash provided by (used in) operating activities

6,837

758

10

(165)

Purchase of investment securities

(23)

(15)

Proceeds from sales of investment securities

368

18

Purchase of property, plant and equipment(2,877)(3,039)Proceeds from sales of property, plant andequipment

268

851

Other,net

(67)

(91)

(2,320)(2,441)

Net increase (decrease) in short-term loans payable

2,626(5,518)Proceeds from long-term loans payable

31,96023,749

Repayment of long-term loans payable(22,070)(21,223)

Redemption of bonds

(200)

(200)

Cash dividends paid(2)

Other,net

(240)

(328)

Net cash provided by (used in) financing activities

6,820(3,520)

383

(156)

Net increase (decrease) in cash and cash equivalents

11,719(5,359)Cash and cash equivalents at beginning of period

9,275

20,160Cash and cash equivalents at end of period

20,99514,801

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization

Interest and dividends income received
Interest expenses paid

Net cash provided by (used in) investing activities
Decrease (increase) in time deposits

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities

Effect of exchange rate change on cash and cash
equivalents-- 7 --

Unitika Ltd. (3103)

Financial Results for the 1st Nine-Month Period of the Fiscal Year Ending March 31, 2011

(4) Notes on going concern assumption
Not applicable(5) Segment information
Segment information by business
1st nine-month period ended December 31, 2009 (April 1, 2009 to December 31, 2009)
Polymers(Millions ofyen)

Environmental
Business/
Advanced
Materials(Millions of yen)

Fibers &Textiles(Millions ofyen)

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

44,044
1,606

17,261
52

57,736
243

14,908
1,952

133,951
3,853(3,853)

133,951-

Total

45,65017,31357,97916,860137,804(3,853)

133,951

6,360

926

(834)

1,433

7,885

(1,686)

6,198

Operating income (loss)

Health &Amenity,
Others(Millions of
yen)

Total
(Millions ofyen)

Elimination or Consolidated
corporate
total(Millions of(Millions of
yen)
yen)

Segment information by geographic area
1st nine-month period ended December 31, 2009 (April 1, 2009 to December 31, 2009)
Segment information by geographic area is omitted since sales in Japan exceed 90% of total sales of all
segments.
Overseas sales
1st nine-month period ended December 31, 2009 (April 1, 2009 to December 31, 2009)
I. Overseas sales (Millions of yen)
16,381
II. Consolidated sales (Millions of yen)
133,951
III. Ratio of overseas sales to consolidated sales (%)
12.2(Note) There were no segments whose sales (excluding inter-segment sales or transfers) exceeded 10% of consolidated
sales.
[Segment Information]
Information on net sales, income or loss by reportable segment
1st nine-month period ended December 31, 2010 (April 1, 2010 to December 31, 2010) (Unit: Millions of yen)
Reportable segment
Polymers

Advanced Fibers &Materials Textiles

Total

Other
(Note 1)

Total

Adjustment(Note 2)

Figure in quarterly
consolidated
statements ofincome(Note 3)

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

49,661
24

11,216
15

56,796
135

117,674
174

14,921 132,595
1,502
1,677

(1,677)

132,595-

Total

49,685

11,23156,931

117,848

16,423 134,272(1,677)

132,595

Segment income (loss)

7,425
1,186
357
8,968
222
9,191
(1,925)
7,265(Notes) 1. Other includes the Environmental Business, Medical Business, Health & Amenity Business, and Real Estate-related
Business.
2. The adjustment of (1,925 million yen) for Segment income (loss) includes corporate expenses that are not allocated toeach reportable segment.
3. Segment income (loss) is adjusted with operating income in quarterly consolidated statements of income.

(Additional information)
Effective from the first quarter of the fiscal year ending March 31, 2011, Accounting Standards for Disclosuresabout Segments of an Enterprise and Related Information (ASBJ Statement No. 17, issued March 27, 2009) and
Guidance on Accounting Standard for Disclosures about Segments of an Enterprise and Related Information(ASBJ Guidance No. 20, issued March 21, 2008) have been applied.
(6) Notes on significant changes in the amount of shareholders’ equity
Not applicable-- 8 --