Member of Financial Accounting Standards Foundation

Financial Results for the 1st Quarter of the Fiscal Year Ending March 31, 2011
August 4, 2010
Listed stock exchanges: Tokyo Stock Exchange, Osaka Securities Exchange
Company name: Unitika Ltd.
Code number: 3103
URL: http://www.unitika.co.jp/e/home.htm
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: August 13, 2010
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 quarter of fiscal year ending March 31, 2011 (April 1, 2010 to June 30, 2010)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales

Q1 of FY ending March 31, 2011
Q1 of FY ended March 31, 2010

Operating income

Millions of yen%

Millions of yen

44,681
42,5395.0(19.1)

1,976
1,086

Quarterly net income per share

Ordinary income

%
81.9
(6.0)

Millions of yen

969
112

Quarterly net income
Millions of yen

56
54

%
3.3
(55.7)

Quarterly net income per share after full dilution

Yen
0.12
0.11

Q1 of FY ending March 31, 2011
Q1 of FY ended March 31, 2010%
764.9
(88.9)Yen-(2) Consolidated financial situation
Total assets
Q1 of FY ending March 31, 2011
FY ended March 31, 2010

(Reference) Shareholders’ equity

Net assets

Millions of yen
269,749
277,196

Capital adequacy ratio

Millions of yen
23,656
23,519Net assets per share

%
7.4
7.2

Yen
41.87
41.70

1st quarter of fiscal year ending March 31, 2011: 19,906 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 Q2Yen

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

FY ending March 31, 2011 (forecast)End of Q3
Yen
0.00
0.00

Year end
Yen

Annual

-

Yen
0.00

Yen
0.00

-

0.00

0.00

(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

6-month period ending September 30,
2010 (accumulation)
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

90,000190,000

(0.3)
4.3

4,000
11,500

1.5
34.6

2,000
7,000

4.2
56.4

1,500
6,000

143.2
97.6

3.16
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 quarter 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 quarter of the fiscal year ending March 31, 2011: 549,507 sharesFiscal year ended March 31, 2010: 546,728 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
1st quarter of the fiscal year ending March 31, 2011: 475,420,533 shares
1st quarter of the fiscal year ended March 31, 2010: 475,535,087 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

Unit- 2 -- 2 -ika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2011

1. Qualitative Information on Quarterly Consolidated Performance(1) Qualitative information on consolidated performance
In the first quarter of the fiscal year ending March 31, 2011 (April 1, 2010 to June 30, 2010), economic
recovery slowed, with domestic demand such as consumer spending and capital expenditures remaining
anemic and exports to Asian countries losing momentum. In such an environment, the Unitika Group
saw its earnings improve against the backdrop of sales recovery: net sales of 44,681 million yen (up5.0% year-on-year), operating income of 1,976 million yen (up 81.9% year-on-year), ordinary incomeof 969 million yen (up 764.9% year-on-year), and net income of 56 million yen (up 3.3% year-on-year).
Here is a summary of the business by segment.
[Polymers]
In the film business, shipment of package films recovered and orders for industrial-use films increased.
However, a rise in raw material prices, mainly nylon, affected profitability. In the resins business,
demand from the automobile and the electric and electronics fields remained robust, while orders forpolyarylate resins recovered. In the nonwoven fabrics business, sales of spunbond products for building
materials use stagnated, while those for agricultural use grew steadily. Sales of spunlace for cosmetics
and sundry goods remained solid.
[Advanced Materials]
In the glass fiber business, sales of glass cloth for industrial materials use were sluggish, due to weak
demand in major applications such as the building and civil engineering fields, with some exceptions.
Shipment of IC cloth recovered because its orders gradually increased. However, profitability did not
improve so much since their selling prices did not rebound. Sales of activated carbon fibers for use inautomobile gas-phase and waste liquid treatment remained robust. Meanwhile, sales of glass beads forreflective materials use to Asian countries were strong.
[Fibers & Textiles]
In the industrial fibers and textiles business, sales of vinylon fibers for reinforced concrete use inEurope were slow to recover. Although the division tried to expand its sales in emerging countries, it
failed to improve profitability due to declining selling prices and the yen’s appreciation. Sales of highly
resistant synthetic thread for the building and civil engineering fields and short-fiber polyester for the
automobile field were strong. In the garment fibers and textiles business, sales for the functional
sportswear and office uniforms fields, in particular, rebounded, despite a delay in full-fledged recoveryof earnings.
[Others]
In the environment business, the division saw demands from the public sector remain weak due to thelingering difficult economic situation. In such a situation, the division strived to maintain profitability
by reducing costs further and focusing on the maintenance field. In the medical business, sales ofcatheters for the circulatory system grew steadily and sales of enzymes recovered, but the NHI
reimbursement price revision affected the division’s earnings. In the health & amenity business, sales offunctional dietary materials, such as Ceramide, increased favorably. In the real estate-related business,sales of condominiums were solid.

-- 2 --

Unit- 3 -- 3 -ika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2011(2) Qualitative information on consolidated financial positions
Total assets decreased by 7,446 million yen from the end of the previous fiscal year to 269,749 million
yen. This was mainly due to a decrease in cash and deposits. Liabilities decreased by 7,583 million yen
from the end of the previous fiscal year to 246,093 million yen. This is mainly due to a decrease inloans payable. Net assets increased by 136 million yen from the end of the previous fiscal year to
23,656 million yen. This is mainly attributable to an increase in retained earnings.
Here is a summary of the cash flows situation.
(Net cash provided by [used in] operating activities)
Net cash used in operating activities amounted to 646 million yen (net cash of 2,553 million yen
provided during the same period last year) due to an increase in notes and accounts receivable-tradeduring the first quarter of the fiscal year ending March 31, 2011.
(Net cash provided by [used in] investment activities)
Net cash used in investment activities amounted to 702 million yen (net cash of 601 million yen usedduring the same period last year) due to capital expenditures of 1,198 million yen during the firstquarter of the fiscal year ending March 31, 2011.
(Net cash provided by [used in] financing activities)
Net cash used in financing activities amounted to 4,899 million yen (net cash of 1,147 million yen
used during the same period last year) due to reduction of interest-bearing liabilities during the firstquarter of the fiscal year ending March 31, 2011.
Consequently, cash and cash equivalents at the end of the first quarter of the fiscal year ending March
31, 2011 decreased 6,263 million yen from the end of the previous fiscal year to 13,897 million yen.
(3) Qualitative information on the forecast of consolidated performance
Since the performance for the first quarter of the fiscal year ending March 31, 2011 was almost in linewith the plan, the company did not revise its six-month and 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 income before income
taxes decreased by 3 million yen, 4 million yen, and 155 million yen, respectively.
(Change in presentation of financial statements)
Consolidated statements of cash flow
Gain (loss) on sales of investment securities, which was stated in net cash from operating activities,
is included in Other, net in the three-month period of the fiscal year ended June 30, 2010, because its
quantitative materiality diminished. Gain (loss) on sales of investment securities included in Other,net is 0 million yen in the aforementioned period.
Meanwhile, Cash dividends paid, which was stated in net cash from financing activities, is includedin Other, net in the three-month period of the fiscal year ended June 30, 2010, because its quantitative
materiality diminished. Cash dividends paid included in Other, net is 0 million yen in the
aforementioned period.

-- 3 --

Unit- 4 -- 4 -ika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2011

3. Quarterly financial statements(1) Consolidated quarterly balance sheets
End of Q1 of FY ending March
2010(June 30, 2010)(Unit: Millions of yen)
Condensed consolidatedbalance sheet for previous FY(March 31, 2010)

13,93842,73627,21014,524
4,207
5,090
(194)
107,512

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

104,606
49,579154,186

104,452
50,280154,732

68
629
698

90
630
720

7,996
(644)
7,351
162,236
269,749

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 value)
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 --

Unit- 5 -- 5 -ika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2011

End of Q1 of FY ending March
2010(June 30, 2010)(Unit: Millions of yen)
Condensed consolidatedbalance sheet for previous FY(March 31, 2010)

23,64173,92932,406
400
451
617
5
7

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

981
10,714
143,155

1,118
11,597
148,631

81,9704,512
8616,368102,938
246,093

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

23,798
1,661(4,329)(54)
21,07523,798
1,661(4,734)(54)
20,670

(455)

(429)

(3)
2,450
(3,160)(1,168)3,749
23,656
269,749

3
2,799(3,219)(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 --

Unit- 6 -- 6 -ika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2011

(2) Consolidated quarterly statements of income(Three-month period ended June 30, 2009)

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
Other
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Total extraordinary income
Extraordinary loss
Loss on disposal of noncurrent assets
Loss on valuation of investment securities
Business structure improvement expenses
Environmental expenses
Other
Total extraordinary loss
Income (loss) before income taxes and minority
interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in income (loss)
Net income

Three-month period ended June30, 2009(April 1, 2009 to June 30, 2009)
42,53934,797
7,742
6,655
1,086

(Unit: Millions of yen)Three-month period ended June30, 2010(April 1, 2010 to June 30, 2010)
44,68136,537
8,143
6,166
1,976

62
64
164
365
657

57
64

344
466

911
94
625
1,631
112

920
15
537
1,474
969

10
10

292
292

176

135

18
330
(207)

133
220
99
206
335
995
266

94
(266)
(171)

(90)
54

336
(164)
172
93
37
56

-- 6 --

Unit- 7 -- 7 -ika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2011

(3) Consolidated quarterly statements of cash flows(Unit: Millions of yen)Three-month period ended June30, 2009(April 1, 2009 to June 30, 2009)

Three-month period ended June30, 2010(April 1, 2010 to June 30, 2010)

Income (loss) before income taxes and minority
interests

(207)

266

Depreciation and amortization

1,628

1,525

Increase (decrease) in allowance for doubtful
accounts

(15)

109

Increase (decrease) in provision for businessstructure improvement

(986)

(136)

Interest expenses

911

920

Loss (gain) on sales of investment securities(164)

Decrease (increase) in notes and accounts
receivable-trade

5,215


(3,346)

Decrease (increase) in inventories

2,897

2,944

Increase (decrease) in notes and accounts
payable-trade(5,326)(1,359)Other,net

(398)

(896)

Subtotal

3,554

25

Net cash provided by (used in) operating activities

Interest and dividends income received

143

369

Interest expenses paid

(688)

(726)

Income taxes paid

(456)

(315)

Net cash provided by (used in) operating activities

2,553

(646)

Decrease (increase) in time deposits

22

(2)

Purchase of investment securities

(11)

(5)

Proceeds from sales of investment securities

330

14

Purchase of property, plant and equipment(905)(1,198)Proceeds from sales of property, plant andequipment

18

518

Other

(55)

(29)

Net cash provided by (used in) investing activities

(601)

(702)

594

(3,847)

Proceeds from long-term loans payable

4,641

4,230

Repayment of long-term loans payable(6,297)(5,171)

Cash dividends paid

(1)

Other

(85)


(110)

(1,147)(4,899)Effect of exchange rate change on cash and cash
equivalents

158

(14)

Net increase (decrease) in cash and cash equivalents

961(6,263)

Cash and cash equivalents at beginning of period

9,275

20,160Cash and cash equivalents at end of period

10,237

13,897

Net cash provided by (used in) investing activities

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable

Net cash provided by (used in) financing activities-- 7 --

Unit- 8 -- 8 -ika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2011

(4) Notes on going concern assumption
Not applicable(5) Segment information
Segment information by businessThree-month period ended June 30, 2009 (April 1, 2009 to June 30, 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

13,975
463

5,296
6

18,432
99

4,835
791

42,5391,361(1,361)

42,539-Total

14,4385,303

18,531

5,627

43,901(1,361)

42,539

1,609

106

(497)

376

1,594

(507)

1,086

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
Three-month period ended June 30, 2009 (April 1, 2009 to June 30, 2009)
Segment information by geographic area is omitted since sales in Japan exceed 90% of total sales of all
segments.
Overseas sales
Three-month period ended June 30, 2009 (April 1, 2009 to June 30, 2009)
I. Overseas sales (Millions of yen)
5,078
II. Consolidated sales (Millions of yen)
42,539III. Ratio of overseas sales to consolidated sales (%)
11.9(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
Three-month period ended June 30, 2010 (April 1, 2010 to June 30, 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

16,3882

3,680-

18,53740

38,606
43

6,074
389

44,681432(432)

44,681-

Total

16,391

3,680

18,57738,6496,464

45,113(432)

44,681

Segment income (loss)

2,418
358
(105)
2,670
(53)
2,617
(641)
1,976
(Notes) 1. Other includes the Environmental Business, Medical Business, Health & Amenity Business, and Real Estate-related
Business.
2. The adjustment of 641 million yen for Segment income (loss) includes corporate expenses that are not allocated to eachreportable 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 --