Member of Financial Accounting Standards Foundation

Financial Report for Fiscal Year ended March 31, 2016 [Japanese GAAP] (Consolidated)
May 13, 2016
Company name: Unitika Ltd.
Listed stock exchange: Tokyo Stock Exchange
Code number: 3103 URL: http://www.unitika.co.jp/e/home.htm
Representative: Hiroyuki Shime, President and Chief Executive Officer
Contact: Masaaki Ohnishi, General Manager of Accounting Department
TEL +81-6-6281-5721
Expected date for holding a regular shareholders meeting: June 29, 2016
Expected date for submitting securities report: June 29, 2016
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, 2016 (April 1, 2015 to March 31, 2016)(1) Consolidated business results(Percentages represent changes from same period in previous year.)Net sales

Net income attributableto owners of parent% Millions of%yen(11.2)
6,933—
62.9(27,033)—

Operating income

Ordinary income

Millions of% Millions of% Millions of
yen
yen
yen
FY ended March 31, 2016
146,474(8.0)
10,45017.2
6,821
FY ended March 31, 2015
159,126
(2.2)
8,916
31.1
7,680
(Note) Comprehensive income
FY ended March 31, 2016: 7,119 million yen [—%]FY ended March 31, 2015: (26,703) million yen [—%]Net income per Diluted net income
Ratio of operating
Return on equity
Return on asset
share
per share
income to sales
Yen
Yen
%
%
%
FY ended March 31, 2016
10.29
5.50
22.0
3.0
7.1
FY ended March 31, 2015(46.87)—(123.2)
3.1
5.6(Reference) Equity in earnings/losses of affiliates
FY ended March 31, 2016: (3) million yen
FY ended March 31, 2015: 12 million yen(2) Consolidated financial situation
Total assets
Net assets
Capital adequacy ratio
Millions of yen
Millions of yen%
FY ended March 31, 2016
219,957
37,936
15.7
FY ended March 31, 2015
235,882
31,590
12.0(Reference) Shareholders’ equity: FY ended March 31, 2016: 34,598 million yen
FY ended March 31, 2015: 28,354 million yen

Net assets per share
Yen(6.76)(17.01)(3) Consolidated cash flows situation
Cash flows fromoperating activities

Cash flows frominvesting activities

Millions of yen
11,661
6,080

FY ended March 31, 2016
FY ended March 31, 2015

Cash flows fromfinancing activities

Millions of yen
4,124
(145)

Millions of yen(5,010)5,870

Balance of cash andcash equivalents atperiod end
Millions of yen
42,02331,708

2. Dividend payment
Annual dividend per share

FY ended March 31, 2015
FY ended March 31, 2016
FY ending March 31, 2017
(forecast)End of Q1

End of Q2

End of Q3

Yen

Yen

Yen

Year end

Total

Yen

Yen




0.00
0.00




0.00
0.00

0.00
0.00



0.00



0.00

0.00

Annualdividends paid
(Total)Dividend
payout ratio(consolidated)

Dividend ratioof net assets(consolidated)

Millions of
yen



%

%









(Note) The above Dividend payment refers to dividends paid to the holders of common stock. For details of dividend payment to the holders of classshares (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, 2017 (April 1, 2016 to March
31, 2017)
Net sales
Millionsof yen
1st half of FY ending March 31,
2017
FY ending March 31, 2017(% figures represent changes from same period in the previous year.)
Profit attributable
Net income
Operating income Ordinary income
to owners ofper share
parentMillions
Millions
Millions
%
%
%
%
Yen
of yenof yenof yen66,000

(9.9)

5,200

17.6

4,100

34.4

3,200

85.9

4.68

137,500(6.1)

11,700

12.0

9,000

31.9

7,000

1.0

10.41

* 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: 7 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., Itecs Corp., Unitika Estate Co., Ltd.
(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement(i) Changes in accounting policies due to revisions of accounting standards: Yes(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, 2016: 577,523,433 sharesFiscal year ended March 31, 2015: 577,523,433 shares(ii) Number of treasury stocks at end of period
Fiscal year ended March 31, 2016: 805,686 sharesFiscal year ended March 31, 2015: 794,415 shares(iii) Average number of shares outstanding during the term
Fiscal year ended March 31, 2016: 576,723,333 sharesFiscal year ended March 31, 2015: 576,734,918 shares(Reference) Summary of non-consolidated performance
1. Non-consolidated performance for fiscal year ended March 31, 2016 (April 1, 2015 to March 31, 2016)(1) Non-consolidated business results(Percentages represent changes from same period in previous year.)
FY ended March 31, 2016
FY ended March 31, 2015

Net sales
Millions of yen
85,83893,942

Operating income
Ordinary income
Net income% Millions of yen% Millions of yen% Millions of yen
%
(8.6)
8,917
29.1
5,939
7.1
7,355 —
(0.2)
6,908
49.1
5,547 129.6(30,595) —Net income per share
FY ended March 31, 2016
FY ended March 31, 2015

Yen
11.02
(53.05)

Diluted net income per share
Yen
5.83


(2) Non-consolidated financial situation
Total assets
Net assets
Capital adequacy ratio
Millions of yen
Millions of yen%
FY ended March 31, 2016
203,043
39,15719.3
FY ended March 31, 2015
200,940
32,390
16.1(Reference) Shareholders’ equity: FY ended March 31, 2016: 39,157 million yen
FY ended March 31, 2015: 32,390 million yen

Net assets per share
Yen
1.15(10.01)* Presentation of situation of audit proceduresThis financial report is not subject to audit procedures under the Financial Instruments and Exchange 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 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 performance and precautionary statements when using the forecast of performance, pleaserefer to 1. Analysis of business results and financial situation (1) Analysis of business results: Forecast of business performance forfiscal year ending March 31, 2017 on page 4 of the Financial Report (the attachment).

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 as follows:
Annual dividends
End of Q1
Class A share
FY ended March 31, 2015
FY ended March 31, 2016
FY ending March 31, 2017 (forecast)Class B share
FY ended March 31, 2015
FY ended March 31, 2016
FY ending March 31, 2017 (forecast)Class C share
FY ended March 31, 2015
FY ended March 31, 2016
FY ending March 31, 2017 (forecast)Yen

End of Q2

—
—

Yen
0.00
0.00
0.00
Yen
0.00
0.00
0.00
Yen
0.00
0.00

—

0.00

—
—
—
Yen
—
—
—
Yen

End of Q3
Yen

Year end

Total

—
—

Yen
8,021.90
12,000.00
12,000.00
Yen
15,870.00
23,740.00
23,740.00
Yen
40,109.60
60,000.00

Yen
8,021.90
12,000.00
12,000.00
Yen
15,870.00
23,740.00
23,740.00
Yen
40,109.60
60,000.00—

60,000.00

60,000.00

—
—
—
Yen
—
—
—
Yen

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2016

 Table of contents for the attachment
1. Analysis of business results and financial situation .............................................................................................. 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, 2016 and the fiscal year
ending March 31, 2017 ....................................................................................................................................... 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. Basic approach to the selection of accounting standards ...................................................................................... 7
4. 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
Previous consolidated fiscal year (April 1, 2014 to March 31, 2015) ............................................................ 12(4) Consolidated statements of cash flow .......................................................................................................... 15(5) Notes regarding consolidated financial statements ....................................................................................... 16(Notes regarding assumption of a going concern) ......................................................................................... 16(Significant items that are the basis for preparation of consolidated financial statements) ............................. 16(Changes in accounting policies) .................................................................................................................. 16(Segment information etc.)........................................................................................................................... 17(Per share information) ................................................................................................................................ 19(Material subsequent events) ........................................................................................................................ 21
5. Supplementary materials ................................................................................................................................... 22-1-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2016

1. Analysis of business results and financial situation(1) Analysis of business results(i) Business results for fiscal year ended March 31, 2016
During this consolidated accounting year, the Japanese economy continued its modest recovery. Corporate
profits and the job market improved, backed by Tokyo’s economic policies and the Bank of Japan’s monetaryeasing and expansion in inbound demand. However, the outlook remained uncertain due to falling stock prices
worldwide and a strong yen after the start of 2016 in the backdrop of the slow-down of economic growth inChina, uncertainty over interest rate hikes in the U.S., and the prolonging of weak crude oil prices.
Under such circumstances, the Unitika Group tried to strengthen its foundation as a functional materials
manufacturer centering on the Polymers business and restructuring low-profit businesses with the aim ofachieving targets at an early stage under the growth strategy stated in its new medium-term management plan,
which started in May 2014. During this consolidated accounting year, the Group has finished selling off stakes
in consolidated subsidiaries such as Unitika Estate as well as real estate owned by the Group such as the
Toyohashi office. In addition, we have been making progress in our plans to dissolve UNITIKA EMBLEM
CHINA LTD., which is a consolidated subsidiary. This means that in the current consolidated accounting period,
we have largely completed the business portfolio restructuring stated in our medium-term management plan.
In addition, we would like to express our heartfelt apologies to shareholders regarding Unitika Trading Co. Ltd.
The company received an on-site investigation by the Japan Fair Trade Commission on March 1, 2016, on
allegation of violating the antimonopoly law regarding the textile products that use vinylon or flame-retardant
vinylon, which the company placed a competitive bid for orders placed by the Acquisition, Technology &Logistics Agency (ATLA). We are taking this investigation seriously and cooperating fully.
As a result, in this consolidated fiscal year, the Unitika Group reported net sales of 146,474 million yen (down
8.0% year-on-year), operating income of 10,450 million yen (up 17.2% year-on-year), ordinary income of 6,821
million yen (down 11.2% year-on-year), and net income attributable to owners of parent of 6,933 million yen(the net loss of 27,033 million yen in the same period of the previous year.)
The Unitika Group decided that it will pay no dividend for common shares in 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 packaging sector showed weak results due to the impact of economic slowdown in
China, Southeast Asia and other parts of the world. However, domestic sales volume increased due to a recovery
in the domestic market and increased inbound demand, resulting in increased sales volume. In particular, sales
grew for new barrier nylon film which have high gas barrier features. In industrial applications, demand shrankfor information terminal applications, but sales increased supported by sales growth in highly value-added items
such as heat-resistant polyamide film and a silicon-free mold release polyester film. As a result, the Films
business posted increases in both income and profit.
In the Resin business, sales of nylon resins were affected by a slowdown in the automobile industry and China’s
economic slowdown. However, a thermoplastic saturated copolymeric polyester resin and an environmentallyfriendly water-based polyolefin cationic emulsion enjoyed sales growth due to applications in solar panels andother uses. In addition, a thermoplastic polyester resin, saw strong sales for electric and electronic applianceapplications. Sales of the Company’s original polyarylate resin, for information terminal applications rose. A
highly heat-resistant polyamide resin developed using the Company’s original technology, is being increasingly
employed for use in electric and electronic device applications, among others. As a result, the Resin businessoverall saw declining income and increased profit.
In the Non-woven Fabrics business, sales remained weak overall. Sales of polyester spunbond fabrics remained
steady due to domestic applications for daily products, but sales of polyester spunbond fabrics mainly inagricultural and construction-related applications decreased. Overseas, sales remained strong mainly in the restof Asia and North America. Meanwhile, sales of cotton spunlace grew, supported by expansion in external
growth which expanded sales of daily products such as skin care products. As a result, the Non-woven Fabrics
business overall saw declining income and increased profit.
-2-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2016

Consequently, the Polymers business posted an operating income of 8,002 million yen (up 25.4% year-on-year)
on net sales of 56,313 million yen (up 1.2% year-on-year).
[Advanced Materials]
In the Glass Fibers business, sales in the industrial materials sector, mainly building- and environment-relatedmaterials, generally remained strong, but sales in the civil engineering applications were weak. In the electronicmaterials sector, sales of IC cloth suffered weak sales due to weak demand in information terminal applications.
In the Glass Beads business, sales for road marking applications recovered, while sales for industrial andreflective material applications declined. However, profit increased due to improvements in product lineup andefforts to boost productivity. Meanwhile, the Activated Carbon Fibers business generally remained strong.
Demand for liquid phase applications declined starting from the second half of the term in industrial applications.
However, due to a recovery in demand for mainstay water purifier applications, the vapor phase application
seeing a recovery in demand in the second half, as well as other factors, the business overall remained strong.
Consequently, the Advanced Materials business posted operating income of 1,447 million yen (up 3.4% yearon-year) on net sales of 11,914 million yen (down 4.0% year-on-year).
[Fibers and Textiles]
In the Industrial Materials business, sales of ultra-high strength polyester filament yarn were weak in themainstay field of civil engineering. However, profits improved due to increased sales of high-profit-margin
products such as compound fiber. In the short-fiber polyester business, profitability improved substantially due
to the near completion of shrinking low-profit-margin businesses in line with structural reforms that led totransferring the focus to high-value-added products.
In the Garments, Lifestyle Materials, and Bedding business, profitability declined due to increased costs ofoverseas procurement and decline in sales volume in uniforms and sports fields. However, in the women’s
clothing field, the Group managed to secure previous-year-level profit due to efforts to expand sales of secondary
products despite a weak market environment. Overseas, denim exports struggled to grow in the second half ofthe term, but sales of high-profit-products increased, leading to steady performance.
Consequently, the Fibers and Textiles business posted operating income of 1,586 million yen (up 40.2% yearon-year) on net sales of 65,431 million yen (down 12.9% year-on-year).

[Others]
The Others category posted an operating loss of 630 million yen (operating loss of 4 million yen in the same
period of the previous year) on net sales of 12,814 million yen (down 19.6% year-on-year) due to the effects oftransfer of equities and businesses associated with the business portfolio restructuring.

-3-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2016(ii) Forecast of business performance for fiscal year ending March 31, 2017
The Unitika Group has largely finished implementing the business portfolio restructuring measures stated in its
medium-term management plan during this consolidated accounting year. Therefore, the Group will focus on
growth strategies and aim to expand businesses. Specifically, it will maximize use of funds obtained through thereinforcement of its capital base through financial support and external capital contributions in 2014, further
proceed with capital investment mainly in growing businesses such as the Polymers business, increase capability
to supply products to the Asian region, a growing market; and accelerate development of value-added products
in an attempt to expand businesses in Japan and overseas. By implementing the aforementioned measures, theGroup forecasts net sales of 137,500 million yen, operating income of 11,700 million yen, ordinary income of
9,000 million yen, and profit attributable to owners of parent of 7,000 million yen for the next full-year term.
(2) Analysis on financial situation
Total assets declined by 15,924 million yen from the end of the previous consolidated accounting year to 219,957
million yen. This is mainly due to the decreases in inventories and property, plant and equipment despite anincrease in cash and deposits. Liabilities shrank by 22,270 million yen from the end of the previous consolidated
accounting year to 182,020 million yen, mainly due to a decline in trade payables and interest-bearing debt. Net
assets increased by 6,346 million yen from the end of the previous consolidated accounting year to 37,936
million yen, mainly due to an increase in retained earnings from booking profit attributable to owners of parent.
Here is a summary of the cash flow situation.
(Net cash provided by [used in] operating activities)
Cash flow from operating activities in the current consolidated accounting year increased by 11,661 million yen(up 91.8% from the previous consolidated accounting year) due to cash-in-flow, which added depreciation to
net income before taxes and minority interests, as well as due to a decline in inventories.
(Net cash provided by [used in] investment activities)
Cash flow from investment activities in the current consolidated accounting year increased by 4,124 million yen(declined by 145 million yen in the previous consolidated accounting year). The Group booked expenses related
to property, plant and equipment but also booked proceeds from sales of assets associated with the businessportfolio restructuring.
(Net cash provided by [used in] financing activities)
Cash flow from financing activities during the current consolidated accounting year decreased by 5,010 million
yen (increased by 5,870 million yen in the previous consolidated accounting year) due to repayment of loans
payable, among other factors.
As a result, cash and cash equivalents at the end of the current fiscal year increased by 10,315 million yen fromthe end of the previous fiscal year to 42,023 million yen.

-4-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2016

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, 2016

Year ended
March 31, 2015

Year ended
March 31, 2014

15.7

12.0

6.1

14.2

13.4

12.9

11.1

22.5

24.5

4.9

2.3

2.3

(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 whichinterest is paid.
(3) Basic policy for profit distribution and dividends for the fiscal year ended March 31, 2016 and the fiscal year
ending March 31, 2017
The Unitika Group considers that the profit distribution to its shareholders is an important aspect of its business,but management intends to cancel payment of dividends on common stock for the fiscal year ended March 31,
2016, giving due consideration to 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 appropriate to theCompany’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 froma long-term perspective.
Regarding dividends for the classified stock issued through third party allocations in July 2014, the Company
plans to provide the following dividends based on the classified stock issuance guidelines determined at the timeof issuance: 12,000 yen per class A share; 23,740 yen per class B share; and 60,000 yen per class C share.

-5-Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2016

2. Management policies(1) Basic management policies
The Unitika Group operates on our philosophy of “contributing to society by connecting people’s lives andtechnology” and aims to become a company that contributes to the improvement of people’s lives andpreservation of the environment, with social recognition. The Unitika Group firmly believes that contributing tosociety by promoting the basic policy of our long-term vision, of “completing our structural portfolio
restructuring,” “reinforcing our functional materials business sector,” “strengthening our corporate foundationand shareholders’ equity,” which will increase our corporate value and ultimately result in increased returns forour shareholders.
(2) Targeted management index
The Unitika Group places greater importance on amount of net 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 emphasis on and manages
cash flows with great care.
(3) Medium- to long-term business strategies and issues to be addressed
The Unitika Group has largely finished implementing the business portfolio restructuring measures stated in its
medium-term management plan during this consolidated accounting year. Therefore, the Group will focus on
growth strategies and aim to expand businesses. Specifically, the Group will maximize use of funds obtained
through the reinforcement of its capital base through financial support and external capital contributions in 2014;
further proceed with capital investment mainly in growing businesses such as the Polymers business; increasecapability to supply products to the Asian region, a growing market; and accelerate development of value-added
products in an attempt to expand businesses in Japan and overseas.
In the Films business, the Unitika Group plans to branch out into non-packaging sectors, expand sales of new
highgas barrier nylon and increase sales of highly value added products for industrial applications. The new largescale nylon film equipment that went into full-scale operations at our Indonesian subsidiary P.T. Emblem Asia
last spring has secured our top spot in the global market share in nylon film due to further expansion of production
capacity. The Group aims to increase sales in the American and European markets and further expand market
shares in Southeast Asia. In the Resin business, the Group is currently exploring electric and electronics
applications of polyolefin cationic emulsion in addition to the existing environment-related applications. The
Group also plans to increase in sales of highly heat-resistant polyamide resinby exploring new applications, mainly in the electric and electronics-related applications. The Group began
operating in the previous fiscal year a medium-scale production facility that enables annual production of 500
tons of XecoT. In the Non-woven Fabrics business, the Group is continuing to expand production facilities forpolyester spunbond in its Thai subsidiary THAI UNITIKA SPUNBOND CO., LTD. with the goal of starting
operations at the end of March 2017, while at the same time further strengthening the Group’s marketing efforts
to expand global market share. In regards to cotton spunlace, the Group will reinforce sales of daily life
applications such as skin care products as well as reinforce overseas businesses.
In the Advanced Materials business, the Unitika Group plans to reinforce sales expansion of civil engineering andconstruction-related applications in the Glass Fibers business, sales in the industrial materials sector whilestrengthening sales expansion efforts in the applications related to environment, automobile, electric andelectronics. In the electronic materials sector, the Group plans to further develop highly value-added products in
the IC cloth category such as ultra-thin versions, and aim to boost profit by increasing the Group’s share of uniqueproducts such as information terminal applications. In the Glass Beads business, the Group plans to promote sales
expansion in the automobile and electronic parts applications and concentrate on further improving profitability
in the reflective material applications. Meanwhile, in the Activated Carbon Fibers business, the Group plans tomake efforts in the water purifier applications, the liquid phase applications for industrial use, and vapor phaseapplications for general deodorants. In addition, the Group plans to explore overseas markets mainly in the Asian
region such as China and Taiwan.
As for Fibers and Textiles, the Group hopes to expand profit by introducing high-profit-margin products in the
Industrial Materials business with unique products such as compound fiber. The Group will also continue cost
reduction measures in all stages of procurement, production, sales and management in a bid to improve
profitability. In the Garments, Lifestyle Materials, and Bedding business, the Group will accelerate global-6-Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2016

development using overseas bases in China, Vietnam and Indonesia. In Japan, The Group aims to strengthen thefunctionality of products as well as expand sales of high value added products.
Regarding research and development, the Group plans to maximize use of management resources, further
strengthen polymer design and renovation technology and proprietary nanotechnology that the Unitika Groupowns, and accelerate development that will lead to growth of highly functional resins, highly heat-resistant film,
and highly functional fibers.
3. Basic approach to the selection of accounting standards
The Unitika Group adopts Japanese Accounting Standards (Japanese GAAP), since the Group intends to ensure
the comparability of performance with competitors in Japan.

-7-Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2016

4. Consolidated financial statements(1) Consolidated balance sheets(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2015)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property,plant and epuipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
Land
Leased 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
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-8-

Current consolidated
fiscal year
(March 31, 2016)

31,73839,05937,377
977
3,823
(161)
112,81442,10135,811
27,566
1,306
2,921
(106)
109,601

13,887
18,167
1,055
76,904259
6,168
116,443

11,35522,068
911
66,869171
2,791
104,168

4
1,480
1,485

—
1,714
1,714

3,112
11
169
15
336
1,737
(243)
5,138
123,067
235,882

2,963
9
62
13
283
1,171
(32)
4,473
110,356
219,957

Unitika Ltd. (3103) Financial Report for Fiscal Year ended 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
Lease obligations
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
Lease obligations
Deferred tax liabilities
Deferred tax liabilities for land revaluation
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-sale securities
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-9-

Current consolidated
fiscal year
(March 31, 2016)

20,368
2,072
1,703
189
461
1,531
3,947
1,751
11,81543,842

15,322
1,827
363
139
215
1,256
2,630
989
9,159
31,904130,127858
12,2883,075
26
12,353
1,718
160,449
204,291

124,142
642
9,273
3,547
7
11,513989
150,116
182,020100
60,275(31,138)(45)
29,191

100
28,401
5,708(46)
34,164

468
(224)
5,165
(2,807)(3,439)
(837)

433
(203)
6,474
(2,662)(3,608)434

3,236
31,590235,882

3,338
37,936219,957

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2016

(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
Dividend income
Rent income
Share of profit of entities accounted for using equity
methodGain on valuation of interest rate swaps
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodForeign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of shares of subsidiaries and associates
Gain on transfer of business
Reversal of a provision for product repair warranties
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment loss
Loss on sales of shares of subsidiaries and associates
Provision for product repair warranties
Business structure improvement expenses
Other
Total extraordinary losses
Profit (loss) before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent- 10 -

Previous consolidated
fiscal year
(April 1, 2014 toMarch 31, 2015)
159,126
126,515
32,61023,694
8,916

Current consolidated
fiscal year
(April 1, 2015 toMarch 31, 2016)
146,474
114,943
31,53021,08010,450

82
74
87

73
83
317

12
—
1,754
431
2,443

—
127
—
342
943

2,603

2,367

—
—
1,076
3,679
7,680

3
1,148
1,051
4,572
6,821

278
484
925
—
1,688

1,290
375
43
198
1,908

624
3,375
24
3,708
31,172842
39,747(30,378)743(3,540)(2,797)(27,580)(547)(27,033)

527
226
2,098
—
962
138
3,953
4,775
215
(2,387)(2,171)
6,947
13
6,933

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2016

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

Profit (loss)
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,
net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

Previous consolidated
fiscal year
(April 1, 2014 toMarch 31, 2015)(27,580)

Current consolidated
fiscal year
(April 1, 2015 toMarch 31, 2016)
6,947

202
(218)
338
18

(35)
22
123
173

537
877
(26,703)

(168)
115
7,062

(26,110)

7,006

(592)

56

- 11 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2016

(3) Consolidated statements of changes in net assets
Previous consolidated fiscal year (April 1, 2014 to March 31, 2015)(Unit: Millions of yen)
Shareholders’ equity
Capital stock
Balance at the beginning of current period

Capital surplus

26,298Retained earnings

4,385(11,392)

Cumulative effects of changes inaccounting policies

Total shareholders’equityTreasury shares(44)

19,245

1,426

Restarted balance

26,298

4,385

18,74918,7491,426(9,965)(44)

20,672

Changes of items during period
Issuance of new shares

37,499—Dividends of surplus (other capital surplus)
Profit (loss) attributable to owners ofparent(27,033)(27,033)

Purchase of treasury shares
Transfer to other capital surplus from
capital stock
Capital increase of consolidated
subsidiaries
Purchase of shares of consolidated
subsidiaries(0)(44,947)—

44,947——

Deficit disposition(7,806)

Reversal of revaluation reserve for land
Net changes of items other thanshareholders’ equity
Total changes of items during
period

(0)

7,806

—

(1,946)(1,946)(26,198)

55,890(21,173)

(0)

8,518

100

60,275(31,138)(45)

29,191

Balance at the end of current period

Accumulated other comprehensive income

Balance at the beginning of current period

Valuationdifference on
available-forsale securities

Deferred
gains orlosses onhedges

Revaluation
reserve for
land

265

(8)

2,918

Total
NonForeign
Reaccumulated
controllingcurrency measurements
otherof definedinterests
translation
comprehenadjustment benefit plans
sive income(2,904)(3,977)(3,705)

3,828

Cumulative effects of changes inaccounting policies
Restarted balance

Total net
assets

19,368
1,426

265

(8)

2,918

(2,904)(3,977)(3,705)

3,828

20,795

Changes of items during period
Issuance of new shares

37,499—Dividends of surplus (other capital surplus)
Profit (loss) attributable to owners ofparent(27,033)

Purchase of treasury shares(0)

Transfer to other capital surplus from
capital stock
Capital increase of consolidated
subsidiaries
Purchase of shares of consolidated
subsidiaries—

Deficit disposition———

Reversal of revaluation reserve for land
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at the end of current period

1,946

—

1,946

202

(215)

300

97

537

922

(592)

330

202

(215)

2,247

97

537

2,868

(592)

10,795

468

(224)

5,165

(2,807)(3,439)

(837)

3,236

31,590- 12 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2016

Current consolidated fiscal year (April 1, 2015 to March 31, 2016)(Unit: Millions of yen)
Shareholders’ equity
Capital stock
Balance at the beginning of current
periodCapital surplus
100

60,275Retained earnings(31,138)

Total shareholders’equityTreasury shares(45)

Cumulative effects of changes inaccounting policies
Restarted balance

29,191—

100

60,275(31,138)(45)

29,191

Changes of items during period—

Issuance of new shares
Dividends of surplus (other capitalsurplus)(666)

Profit (loss) attributable to ownersof parent

(666)
6,933

Purchase of treasury shares

6,933
(0)

Transfer to other capital surplus
from capital stock(0)—

Capital increase of consolidated
subsidiaries

(47)

(47)

Purchase of shares of consolidated
subsidiaries

(47)

(47)

Deficit disposition(31,112)

Reversal of revaluation reserve forland

31,112—(1,198)(1,198)Net changes of items other thanshareholders’ equity
Total changes of items during
period—(31,874)

36,847(0)

4,972

Balance at the end of current period

100

28,401

5,708

(46)

34,164- 13 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2016
Accumulated other comprehensive income
Valuationdifference on
available-forsale
securities
Balance at the beginning of current
period468

Deferred
gains orlosses onhedges(224)

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

5,165(2,807)

Remeasurementsof defined
benefit plans

Total
accumulated
othercomprehensive income

Noncontrollinginterests

Total net
assets(3,439)

(837)

3,236

31,590

Cumulative effects of changes inaccounting policies
Restarted balance

—
468

(224)

5,165

(2,807)(3,439)

(837)

3,236

31,590Changes of items during period—

Issuance of new shares
Dividends of surplus (other capitalsurplus)(666)

Profit (loss) attributable to ownersof parent

6,933

Purchase of treasury shares(0)

Transfer to other capital surplus
from capital stock—

Increase/decrease through increased
investment into consolidated
subsidiaries

47—

Purchase of shares of consolidated
subsidiaries(47)

Deficit disposition—

Reversal of revaluation reserve forland
Net changes of items other thanshareholders’ equity

1,198

—

1,198

(35)

21

110

144

(168)

72

55

128

Total changes of items during
period

(35)

21

1,309

144

(168)

1,271

102

6,346

Balance at the end of current period

433

(203)

6,474

(2,662)(3,608)

434

3,338

37,936- 14 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2016

(4) Consolidated statements of cash flow
(Unit: Millions of yen)Previous consolidated
fiscal year
(April 1, 2014 toMarch 31, 2015)
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment loss
Business structure improvement expenses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for business structure improvement
Increase (decrease) in provision for product repair
Increase (decrease) in other provisionInterest expenses
Loss (gain) on disposal of non-current assets
Loss (gain) on sales of non-current assets
Gain on transfer of business
Loss (gain) on sale of shares of subsidiaries and associates
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from 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
Proceeds from transfer of business
Proceeds from sales of shares of subsidiaries resulting in change inscope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from 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 common shares
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 15 -

Current consolidated
fiscal year
(April 1, 2015 toMarch 31, 2016)(30,378)
4,954
3,375
29,751
(38)
1,257
1,185
2,663
(33)
2,603
624
(278)
(925)
(460)
(3,426)964
181(2,074)
9,948
157(2,630)(1,394)
6,080

4,775
4,831
226
962
(253)
(803)
(464)
(1,317)
(170)
2,367
527
(1,290)
(43)
1,723
2,141
6,084
(2,805)(1,929)14,561154(2,371)(683)
11,661(0)(21)
82(4,737)
2,105
1,734

(49)
(20)
101
(5,476)
9,028
93

1,174

750

(482)
(145)

(304)
4,124

(25,320)101(5,981)
37,218
—
(147)
5,870
345
12,151
19,55731,708198—(4,221)
—
(666)
(320)
(5,010)(459)
10,31531,70842,023

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2016(5) Notes regarding consolidated financial statements(Notes regarding assumption of a going concern)
Not applicable(Significant items that are the basis for preparation of consolidated financial statements)
There are no significant changes in our latest securities report except for the “items related to the scope of theconsolidated group” and “items related to accounting policies” stated below.
1. Scope of consolidation(1) Number of consolidated subsidiaries: 32 companies
Name of major consolidated subsidiaries:
NIPPON ESTER CO., LTD.
UNITIKA TRADING CO., LTD.
During the current consolidated accounting year, the number of consolidated subsidiaries has declined in
the following ways: five consolidated subsidiaries were sold off through transfer of shares, five firms wereliquidated, while one subsidiary is starting the process of liquidation.
(2) Name of major non-consolidated subsidiaries:
Major non-consolidated subsidiaries:
Akoh Unitec Service Co., Ltd.
(Reasons the Company excludes such entities from the scope of consolidation)
Since the total assets, net sales, net income (loss) (corresponding to equity interest) and retained earnings(corresponding to equity interest) of the three non-consolidated subsidiaries are small and do not significantly
influence the Company’s consolidated financial statements, the Company excludes these entities from thescope of consolidation.
“Items related to accounting policies”
Consolidated tax payment system
The Company has been applying the consolidated tax payment system starting this consolidated accounting year.
(Changes in accounting policies)(Application of Accounting Standards for Business Combination)
From the current consolidated accounting year, the Company adopted the Accounting Standard for Business
Combination (ASBJ Statement No. 21, September 13, 2013, hereinafter the “Business Combination AccountingStandards”), 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 AccountingStandards”). In response to the adoption of these standards, the Company changed the accounting treatment of theCompany's equity in subsidiaries under the control of the Company. Specifically, differences resulting from theCompany's acquisition of shares of subsidiaries are recorded as a capital surplus, and the costs related to thoseacquisitions are recorded as expenses for the fiscal year in which the acquisitions are made. For businesscombinations in and after the current consolidated accounting year, the method to allocate acquisition costs haschanged. The acquisition cost modified by temporary accounting is allocated to the consolidated financial
statements for the fiscal consolidated year in which the business combination is implemented. In addition, thepresentation of net income has also changed. And the presentation as a “minority interests” has changed to “noncontrolling interests”. To reflect these changes, presentations in the consolidated financial statements for the fullyear 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 current
consolidated accounting year.
As a result, operating income increased by 11 million yen, ordinary income and net income before income taxes
for the current consolidated accounting year each declined by 33 million yen. In addition, Capital surplus as of theend of the current fiscal year decreased by 94 million yen.
- 16 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2016

In the Group’s consolidated cash flow sheet for the current consolidated accounting period, cash flow related to thesales or acquisition of shares in subsidiaries that do not accompany changes of scope of consolidation is mentioned
in the “cash flow based on financing activities” category. Meanwhile, costs related to acquisition of shares ofsubsidiaries that accompany changes of scope of consolidation as well as cash flow related to the costs of acquisitionor sale of shares of subsidiaries that accompany changes of scope of consolidation are classified in the “cash flowfrom operating activities” category.
(Segment information etc.)
Segment information
1. Summary of reportable segment
Unitika’s reportable segments are components of the Company for which separate financial information isavailable. These segments are subject to regular reviews by the Board of Directors to decide 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 and so on. The Fibers & Textiles segment 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 reportable segment
Methods of accounting treatment of reported business segments are almost the same as those employed formaking the consolidated financial statements.
Inter-segment earnings and transfers are based on prevailing market prices.
Starting from the current consolidated accounting period, Unitika reformed the organizational structure
and business classification for management purposes, with the aim of achieving the goals of the mediumterm 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 expenditures, which were included in the adjustment items in the past areallocated to relevant segment. The segment information for the previous consolidated fiscal year wasreclassified as segment information after this revision.

- 17 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2016

3. Information on the amount of net sales, profit or loss, assets and other items by reportable segment
The previous fiscal year (April 1, 2014 to March 31, 2015)
Reportable segment

Polymers

Advanced
Materials

Fibers &Textiles

Other(Note 1)
Total

Total

(Unit: Millions of yen)Amountposted inConsoliAdjustment
dated(Note 2)
financialstatements(Note 3)

Net sales
Net sales to outside
customers
55,636
12,41675,128143,181
15,944
159,126—
159,126
Inter-segment sales ortransfer
11,591916
1,088
13,595
1,661
15,257(15,257)—
Total
67,227
13,33376,216
156,777
17,606
174,383(15,257)
159,126
Segment income (loss)
6,383
1,399
1,131
8,915
(4)
8,910
5
8,916
Segment assets
99,13018,404
53,114
170,649
40,476211,125
24,756
235,882
Other items
Depreciation andamortization
3,112
384
504
4,001
635
4,637
317
4,954
Increase in property, plantand equipment andintangible assets
2,435
338
512
3,286
416
3,703
1,671
5,375
(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 the like.
2. Adjustment details are as follows.
(1) Adjustment of 5 million yen for Segment income (loss) is attributable to the elimination of the inter-segment transactions.
(2) Adjustment of 24,756 million yen for Segment assets include investment of surplus funds (cash and deposits) by the parent
company, long-term investment funds (investment securities) and assets, etc. related to the Administration and the Researchand Development Division of the parent company.
(3) Adjustment of 317 million yen for Depreciation and amortization is depreciation and amortization of common assets thatare not allocated to each reportable segment.
(4) Adjustment of 1,671 million yen for Increase in property, plant and equipment and intangible assets is an increase incommon assets that are not allocated to each reportable segment.
3. Segment income (loss) is adjusted with operating income in the consolidated statements of income.

- 18 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2016

Current consolidated fiscal year (April 1, 2015 to March 31, 2016)
Reportable segment

Polymers

Advanced
Materials

Fibers &Textiles

Other(Note 1)
Total

Total

(Unit: Millions of yen)Amountposted inConsoliAdjustment
dated(Note 2)
financialstatements(Note 3)

Net sales
Net sales to outside
customers
56,313
11,91465,431
133,659
12,814146,474—
146,474
Inter-segment sales ortransfer
10,459928
952
12,341
1,130
13,472(13,472)—
Total
66,773
12,842
66,384
146,001
13,945
159,946(13,472)
146,474
Segment income (loss)
8,002
1,447
1,586
11,036(630)
10,40544
10,450
Segment assets
100,337
17,63047,176
165,144
16,089181,233
38,723219,957
Other items
Depreciation andamortization
3,306
374
488
4,170
252
4,422
408
4,831
Increase in property, plantand equipment andintangible assets
4,230
379
506
5,116
270
5,386
1,139
6,526
(Note) 1. The Other category comprises business segments that are not included in reportable segments. It includes Environmental
business, Real Estate-related business and the like.
2. Adjustment details are as follows.
(1) Adjustment of 44 million yen for Segment income (loss) is attributable to the elimination of inter-segment transactions.
(2) Adjustment of 38,723 million yen for Segment assets include investment of surplus funds (cash and 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 408 million yen for Depreciation and amortization is depreciation and amortization of common assets thatare not allocated to each reportable segment.
(4) Adjustment of 1,139 million yen for Increase in property, plant and equipment and intangible assets is an increase incommon assets that are not allocated to each reportable segment.
3. Segment income (loss) is adjusted with operating income in consolidated statements of income.

(Per share information)
Previous consolidated fiscal year
(April 1, 2014 to March 31, 2015)

Current consolidated fiscal year
(April 1, 2015 to March 31, 2016)

Net assets per share(17.01) yen(6.76) yen

Net income per share or net loss per
share(46.87) yen

10.29 yen

Net income per share after full dilution—

5.50 yen(Note) 1. Information on net income per share after full dilution for the previous consolidated fiscal year was omitted, since
we posted a net loss per share, although there was potential common stock.
2. The basis for the calculation of net assets per share is as follows:
Previous consolidated
Current consolidated
fiscal year
fiscal year
(March 31, 2015)(March 31, 2016)
Total net assets (million yen)Amounts deducted from the total net assets(million yen)(of which amounts to be paid in for sharesof class stock (million yen))(of which preferred dividends (million
yen))(of which non-controlling interests (million
yen))
Net assets at the end of the fiscal year
attributable to common stock (million yen)
Number of common stock at the end of the fiscal
year used for calculating net assets per share(thousand shares)- 19 -

31,59037,936

41,401

41,834(37,499)(37,499)

(666)

(997)

(3,236)(3,338)(9,811)(3,898)576,729576,717

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2016

3. The basis for the calculation of net income per share or net loss per share, and net income per share after full
dilution is as follows:
Previous consolidated
Current consolidated
fiscal year
fiscal year
(April 1, 2014 to(April 1, 2015 toMarch 31, 2015)
March 31, 2016)
Net income per share or net loss per share

Net income (loss) attributable to owners ofparent (million yen)Amount not attributable to common stockholders(million yen)
(Of which preferred dividends (millions of yen))
Net income (loss) attributable to owners ofparent related to common stock (millions of yen)
Average number of common stock during the
fiscal year (thousand shares)
Net income per share after full dilution per share
Net diluted earnings attributable to owners ofparent (millions of yen)
(Of which preferred dividends (millions of yen))
Increased number of common stock (thousand
shares)Outline of potential common stock that was notincluded in the calculation of net income pershare after full dilution due to the absence ofdilutive effects but had significant changes
compared with the end of the previous
consolidated fiscal year.

(27,033)

6,933

—

997

(—)

(997)

(27,033)

5,935

576,734

576,723

—

997

(—)

(997)

—

684,847Class A share: 21,740 sharesClass B share: 5,759 sharesClass C share: 10,000 shares- 20 -



Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2016

(Material subsequent events)
Transactions under common control
The Company has integrated Unitika Realty Co., Ltd., a wholly owned subsidiary, effective April 1, 2016, based on
its decision made at the Board of Directors’ meeting on January 26, 2016.
1. Overview of transaction(1) Name and business of the integrated company
Name: Unitika Realty Co., Ltd.
Business: management, sales, rental and development of real estate
Financial status at time of integration (fiscal year ended March 2016)
Total assets
13,434 million yen
Liabilities
1,030 million yen
Net assets
12,403 million yen(2) Business integration date: April 1, 2016(3) Method of integration: merged with Unitika Ltd. as the existing company and Unitika Realty as a dissolved
company.
(4) Name after integration: Unitika Realty Co., Ltd.
(5) Other items related to the overview of transaction: The now-defunct Unitika Realty Co., Ltd. was established
for the purpose of maximizing use of the Unitika’s underutilized real estate and conducting comprehensive
management of rental assets. However, due to Unitika’s withdrawal from selling major real estate andmanaging shopping centers and other facilities, Unitika Realty’s business size shrank drastically, and it
completed playing the role it was intended to play. Therefore, it was integrated into Unitika.
2. Overview of the accounting process implemented
The integration was conducted as a transaction under common control based on the “Accounting Standard forBusiness Combination” and “Guidance on Accounting Standard for Business Combination and AccountingStandard for Business Divestitures.”- 21 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2016

5. Supplementary materials(1) Results (consolidated)
Net sales
FY ended March 2015
Consolidated

Nonconsolidated

FY ended March 2016
FY ending March 2017
Comparison with prior year

Full year
Q2
Full year
Q2 (Forecast)
Full year (Forecast)
Q2 (Forecast)
Full year (Forecast)

159,126
73,254146,474
66,000137,500(7,254)(8,974)

Operatingincome
8,916
4,423
10,4505,200
11,700777
1,250(Millions of yen)
Ordinary
Net income
income7,680(27,033)
3,050
1,721
6,821
6,933
4,100
3,200
9,000
7,000
1,050
1,479
2,179
67

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

Net sales to outside
customers
FY ended
Component ratio (%)
March 2015
Operating income
Component ratio (%)
Net sales to outside
customers
Results for
FY ended
Component ratio (%)
current fiscal
March 2016
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 2017
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

55,636

12,41675,12815,944

—

35.0
6,383
71.6

7.8
1,399
15.7

47.2
1,131
12.7

10.0
(4)
(0.0)

—

56,313

11,91465,431

12,814

—

38.4
8,002
76.6

8.1
1,447
13.8

44.7
1,586
15.2

8.7
(630)
(6.0)

—

677

(502)

(9,697)(3,130)—(12,652)

1.2

(4.0)

(12.9)(19.6)

—

(8.0)

1,619

48

455

(626)

25.4

3.4

40.2

57,00013,100

41.5
8,900
76.1

Other

159,126
100.0
8,916
100.0

5
0.1

146,474
100.0
10,450
100.0

44
0.4

39

1,534

—

780.0

17.2

63,600

3,800

—

9.5
1,500
12.8

46.3
2,000
17.1

2.8
(700)
(6.0)

—

687

1,186

(1,831)(9,014)—(8,974)

1.2

10.0

(2.8)

(70.3)

—

(6.1)

898

53

414

(70)

11.2

3.7

26.1

137,500
100.0
11,700
100.0

0
0.0

—

(44)

1,250

(100.0)12.0(3) Capital expenditures, Depreciation (Property, plant and equipment), R&D expenditures, Interest-bearing liabilities,
Financial account balance, Number of permanent employees (consolidated)(Millions of yen, persons)

FY ended March 2014 Full year
FY ended March 2015 Full year
FY ended March 2016 Full year

InterestDepreciation
bearing
Capital(Property,
R&D
liabilities
expenditures
plant andexpenditures(end of fiscal
equipment)
year)
4,995
4,936
3,881
164,552
4,808
4,715
3,940
133,903
5,968
4,555
3,203
126,334

Financialaccountbalance(2,768)(2,446)(2,212)

Number ofpermanent
employees(persons)
4,513
4,458
3,906

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

FY ended March 2014 Full year
FY ended March 2015 Full year
FY ended March 2016 Full year

Cash flow fromoperating activities

Cash flow frominvestment activities

6,839
6,080
11,661(4,103)
(145)
4,124

- 22 -Cash and cash
equivalents at end of
fiscal year
(3,053)
19,5575,870
31,708(5,010)42,023

Cash flow fromfinancing activities