Member of Financial Accounting Standards Foundation

Financial Report for Fiscal Year ended March 31, 2011
[Japanese GAAP] (Consolidated)
May 10, 2011

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

Listed stock exchange: Tokyo Stock Exchange,
Osaka Securities
Exchange

Representative: Kenji Yasue, President and Chief Executive Officer
Contact: Shoji Ishikawa, General Manager of Accounting Department
TEL +81-6-6281-5721
Expected date for holding a regular shareholders meeting: June 29, 2011
Expected date for submitting securities report: June 29, 2011
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, 2011 (April 1, 2010 to March 31,
2011)(1) Consolidated business results(Percentages represent changes from same period in previous year.)Net sales
Operating income
Ordinary income
Net income
Millions of% Millions of% Millions of% Millions of
%
yen
yen
yen
yen
FY ended March 31, 2011
180,706(0.8)
10,513
23.1
6,119
36.7
2,444
(19.5)
182,239(13.0)
8,543
10.0
4,476
34.1
3,036
FY ended March 31, 2010
(Note) Comprehensive income
FY ended March 31, 2011: 2,460 million yen [(35.1%)]
FY ended March 31, 2010: 3,789 million yen [%]Net income per
Net income per
Ratio of operating
share after full Return on equity Return on asset
share
income to sales
dilution
Yen
Yen
%
%
%
5.14
11.6
2.2
FY ended March 31, 2011
5.8

6.39
16.9
1.6
FY ended March 31, 2010
4.7
(Reference) Equity in earnings/losses of affiliates FY ended March 31, 2011: 38 million yen
FY ended March 31, 2010: (8 million yen)

(2) Consolidated financial situation
Total assets
Net assets
Capital adequacy ratio Net assets per share
Millions of yen
Millions of yen%
Yen
FY ended March 31, 2011
268,740
25,9778.3
46.98
FY ended March 31, 2010
277,196
23,5197.2
41.70(Reference) Shareholders’ equity:
FY ended March 31, 2011: 22,336 million yen
FY ended March 31, 2010: 19,823 million yen(3) Consolidated cash flows situation
Cash flows fromoperating activities

Cash flows frominvesting activities

Millions of yen
10,416
14,286

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

Balance of cash andcash equivalents atperiod end
Millions of yen
Millions of yen(10,844)
16,589(1,175)
20,160Cash flows fromfinancing activities

Millions of yen(2,959)(2,683)

2. Dividend payment
Annual dividend per share
End of Q1 End of Q2 End of Q3

Yen
FY ended March 31, 2010
FY ended March 31, 2011
FY ending March 31,
2012(forecast)

Yen

Yen

Year end

Annual

Yen

Yen




0.00
0.00




0.00
0.00

0.00
0.00



0.00



0.00

0.00

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

Millions of
yen



%




%



3. Forecast of consolidated performance for fiscal year ending March 31, 2012 (April 1, 2011
to March 31, 2012)

First six-month period
Full year(Percentages represent changes from same period in previous year.)
Net income
Net sales
Operating income Ordinary income
Net income
per share
Millions of% Millions of% Millions of% Millions of
%
Yen
yen
yen
yen
yen
85,000 (4.8)
4,500 (0.4)
2,500 11.4
1,000 (13.0)
2.10
178,500 (1.2)
12,500 18.9
8,000 30.7
3,500
43.2
7.36

4. Others(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries
accompanying change of scope of consolidation): No(2) Changes in accounting principles, procedures, and method of presentations(i) Changes associated with revision in accounting standards: Yes(ii) Other changes: NoNote) For details, please refer to Changes in basic important matters for preparation of
consolidated financial statements on page 18.
(3) Number of shares outstanding (Common stock)(i) Number of shares outstanding at end of period (including treasury stock):
Fiscal year ended March 31, 2011: 475,969,000 sharesFiscal year ended March 31, 2010: 475,969,000 shares(ii) Number of treasury stocks at end of period
Fiscal year ended March 31, 2011: 561,784 sharesFiscal year ended March 31, 2010: 546,728 shares(iii) Average number of shares outstanding during the term
Fiscal year ended March 31, 2011: 475,415,759 sharesFiscal year ended March 31, 2010: 475,513,719 shares(Reference) Summary of non-consolidated performance
1. Non-consolidated performance for fiscal year ended March 31, 2011 (April 1, 2010 to March 31,
2011)(1) Non-consolidated business results(Percentages represent changes from same period in previous year.)Net sales
Operating income
Ordinary income
Net income
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
FY ended March 31, 2011
102,663 13.0
9,863 23.6
6,362 42.3
3,570 21.6
90,887 (2.4)
7,979 16.7
4,471 29.6
2,936 FY ended March 31, 2010
Net income per share
FY ended March 31, 2011
FY ended March 31, 2010

Yen
7.51
6.18

Net income per share after
full dilutionYen(2) Non-consolidated financial situation
Total assets
Net assets
Capital adequacy ratio Net assets per share
Millions of yen
Millions of yen%
Yen
FY ended March 31, 2011
226,857
25,706
11.3
54.07
FY ended March 31, 2010
232,676
21,7259.3
45.70(Reference) Shareholders’ equity:
FY ended March 31, 2011: 25,706 million yen
FY ended March 31, 2010: 21,725 million yen* Presentation of situation of audit proceduresThis financial report is not subject to audit procedures under the Financial Instruments andExchange Law of Japan. Audit procedures concerning financial statements have not been
completed at the date of disclosure of this financial report.

* Explanation on appropriate use of forecasts of performance and other special items
The forward-looking statements in this document concerning forecasting of performance and etc.
are based on currently available information and assumptions considered by the company to bereasonable. The actual performance may be significantly different from the forecast due to various
factors. For the assumptions used as a basis for forecast of performance and important matterswhen using the forecast of performance, please refer to 1. Business results (1) Analysis ofbusiness results Forecast of business performance for fiscal year ending March 31, 2011 on
page 4.

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

1. Business results ............................................................................................................................................. 2(1) Analysis of Business results..................................................................................................................... 2(2) Analysis on financial situation................................................................................................................. 4(3) Basic policy for profit distribution and dividends for the fiscal year ended March 31, 2011 and thefiscal year ending March 31, 2012 .......................................................................................................... 5
2. Management Policies..................................................................................................................................... 6(1) Basic management policies...................................................................................................................... 6(2) Targeted management index .................................................................................................................... 6(3) Medium- to long-term business strategies and issues to be addressed .................................................... 6
3. Consolidated financial statements ................................................................................................................. 8(1) Consolidated balance sheets .................................................................................................................... 8(2) Consolidated income statement and consolidated comprehensive income statement ........................... 10(Consolidated income statement) .......................................................................................................... 10(Consolidated comprehensive income statement)................................................................................. 11(3) Consolidated statements of changes in net assets .................................................................................. 12(4) Consolidated statements of cash flow.................................................................................................... 14(5) Notes regarding assumption of a going concern.................................................................................... 15(6) Significant items that are the basis for preparation of consolidated financial statements...................... 15(7) Changes in basic important matters for preparation of consolidated financial statements .................... 18(8) Change in financial statement presentation ........................................................................................... 18(9) Supplemental information...................................................................................................................... 19(10) Notes on consolidated financial statements ......................................................................................... 19(Consolidated comprehensive income statement)................................................................................. 19(Segment information, etc.)................................................................................................................... 20(Per share information) ......................................................................................................................... 22(Material subsequent events)................................................................................................................. 23
4. Other............................................................................................................................................................ 25
Transfer of directors ................................................................................................................................ 25
5. Supplementary materials ............................................................................................................................. 26-1-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

1. Business results(1) Analysis of Business results(i) Business results for fiscal year ended March 31, 2010
In the current fiscal year, domestic consumer spending temporarily lost its momentum due the waning
effects of economic stimulus measures. But, the Japanese economy remained on its way to a mild
recovery, because corporate business performance improved thanks to a steady increase in exports toemerging countries including Asian countries. However, the Great East Japan Earthquake that occurredon March 11, 2011 seriously damaged production bases of raw materials and fuels and components,
disrupted the transportation network, impeding the distribution of goods, and struck a nuclear power
plant, forcing the government to implement rolling blackouts in the Kanto region. The Japanese
economy remained in an unpredictable situation, because the domestic economy sharply cooled down
after the earthquake.
In such an environment, the Unitika Group as a whole promoted structural reform comprising measures
to reduce fixed costs in accordance with its basic policy under its medium-term, three-year management
plan, Reform 2011, implemented from the previous fiscal year. In the meantime, the Group strived toreview operations in business units whose structure was improved, such as the Fibers and Textiles
business. In addition, the Group tried to improve profitability through price revisions amid soaring raw
material and fuel prices mainly in the strategic core businesses, such as Polymers and Advanced
Materials businesses. As a result, the Group reported net sales of 180,706 million yen (down 1,533
million yen year-on-year), operating income of 10,513 million yen (up 1,970 million yen year-on-year),ordinary income of 6,119 million yen (up 1,642 million yen year-on-year), and net income of 2,444
million yen (down 592 million yen year-on-year).
The Unitika Group has decided it will pay no dividend for the current fiscal year. The management
sincerely appreciates your understanding in this matter.
Here is a summary of business by segment.
[Polymers]
Among the Films business, in the packaging field, sales of mainly nylon films for domestic customers
remained sluggish in the first half of the current fiscal year. However, demand for food package
materials grew in the second half of the current fiscal year. In addition, the Company revised selling
prices in response to soaring raw material and fuel prices, leading to sales increase. In the industrial
field, sales increased, because demand remained steady in electronic components and separators
applications despite a temporary inventory adjustment amid tight inventory due to an increase indemand for optical films. As a result, sales and income grew in the Films business.
In the Resins business, sales were supported by solid demand in main fields, including automobile,electric and electronics equipment and office machinery, throughout the current fiscal year, althoughsome orders decreased due to the waning effects of economic stimulus packages. In automobile
applications, domestic sales stagnated, but exports to North America, China, and ASEAN regions rosesolidly. In electric and electronics equipment fields, sales increased steadily including exports to China,
because demand in personal digital assistant applications remained brisk. Sales of U-Polymer, theCompany’s original polyarylate resin, grew firmly, contributing to earnings, thanks to efforts tocultivate demand in automobile and electric and electronics equipment applications in addition to officemachinery applications. As a result, sales and income increased in the Resins business.
In the Non-woven Fabrics business, sales of spunbond fabrics were weak in the civil engineering fields
as a whole, but exports, mainly for carpet applications, and shipments for agriculture and day-to-day
product applications maintained momentum. In addition, demand in roofing applications began
recovering. In the cotton spunlace business, sales volumes and earnings reached record levels, becauseof the expansion of demand in cosmetic sundry goods application due to extraordinary hot summer aswell as steady sales for sanitary materials and industrial wiper applications. As a result, sales andincome increased in the Non-woven Fabrics business.
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Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

The Company continued to strongly promote the use of the biomass plastic Terramac in four fields(films, resins, non-woven and textiles). Its sales were slightly sluggish in the first half of the current
fiscal year, but recovered in the second half of the current fiscal year. The adoption of Terramac steadily
increased in packaging films, sheets, automobile, electric and electronics equipment and various sundry
products applications.
Consequently, the Polymers business posted operating income of 10,550 million yen (up 1,658 million
yen year-on-year) on sales of 67,016 million yen (up 6,073 million yen year-on-year).
[Advanced Materials]
In the Advanced Materials business, sales of glass fibers especially for interior material use stagnated,because there were still negative effects from a decline in new building construction and restraint of
capital expenditures and public spending, but its sales for building and civil engineering refurbishment
use were robust. Demand for IC cloth at home and abroad was on its way to a recovery in the first halfof the current fiscal year. However, its demand suddenly evaporated in the second half of the current
fiscal year. Sales of IC cloth stagnated, because its selling prices declined and export profitability
deteriorated due to the yen’s appreciation. Shipment of activated carbon fibers for automobile use, suchas waste water treatment and VOC removal sheets, was strong. In addition, shipment of glass beads forroad construction use, such as road marking, was slightly sluggish, but demand for industrial use, suchas blast finishing, and reflective materials use, such as traffic signs and protective clothing, was strong.
Consequently, the Advanced Materials business posted operating income of 1,771 million yen (up 282
million yen year-on-year) on net sales of 14,931 million yen (down 611 million yen year-on-year).
[Fibers and Textiles]
In the Industrial Materials business, shipment of ultra-high-strength polyester filament yarn for
construction and civil engineering uses was steady and shipment of short-fiber polyester, mainly for
non-woven fabric use, was also strong. In the meantime, the Company tried to expand sales of vinylon
fiber for reinforced concrete use, a replacement for asbestos, but failed to do so, because a recovery indemand was slow in the European market with a few exceptions; cultivating new customers in Asia andother regions did not lead to a drastic improvement of profitability due to price competition withoverseas products and the yen’s appreciation.
In the Garments, Lifestyle Materials, and Bedding business, a shortage in the capacity of sewing plants
at home and abroad to which the Company outsources production made it difficult for the Company tokeep the business going due to cost problems. However, thanks to its efforts to review operations at
each business and thoroughly control the progress of measures, sales remained generally strong. In theuniform field, demand from corporate customers significantly recovered, while sales were also steady inthe women’s clothing field. Though overall sales continued to decrease gradually due to the effects ofstructural improvement measures implemented from two years ago, profitability improved further.
Consequently, the Fibers and Textiles business posted operating income of 840 million yen (487 million
yen operating loss in the previous fiscal year) on net sales of 77,095 million yen (down 418 million yen
year-on-year).

-3-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

[Others]
In the Environmental business, the Company concluded an agreement with the Hitachi Zosen Group totransfer the environmental plant-related business. Sales and income decreased in the environmental
plant-related business, because the Company started preparation for the business transfer to the Hitachi
Zosen Group in the middle of the current fiscal year. Sales and income also decreased in theEnvironmental Survey and Analysis business, due to intensified price competition as well as
deteriorating business environment such as a cutback in public-works projects.
In the Healthcare & Amenity business, signs of recovery became visible in the health food market.
Sales of functional dietary materials such as Hanabiratake-related goods, Ceramide and Arabinose,
steadily increased. In the Medical business, sales of new catheters grew in the medical product field.
Overall sales were also steady in the biochemical field due to solid demand.
In the Real Estate business, revenue from the sales of condominiums decreased, because the completionof a new condominium project was delayed to the next fiscal year in addition to few completions of new
condominium projects.
Consequently, the Others business posted operating income of 952 million yen (down 1,125 million yen
year-on-year) on net sales of 21,662 million yen (down 6,576 million yen year-on-year).
(ii) Forecast of business performance for fiscal year ending March 31, 2011
With the outlook for the domestic economy, which had been heading for recovery, having become
uncertain due to the effects of the Great East Japan Earthquake, the Unitika Group will steadily
implement measures stated in Reform 2011. Under the program, the Group will review such measuresand put them into practice in a timely manner by flexibly responding to business environment thatchanges over time, and boost profits in focused areas, such as the Polymers and Advanced Materials
businesses, and improve profitability of the Fibers and Textiles business through further structuralreform. The Group will continue striving to further enhance its financial strength. The Unitika Group
forecasts net sales of 178,500 million yen, operating income of 12,500 million yen, ordinary income of
8,000 million yen, and net income of 3,500 million yen for fiscal year ending March 31, 2012.
(2) Analysis on financial situation
Total assets decreased by 8,456 million yen from the end of the previous fiscal year to 268,740 million
yen, mainly due to a decrease in cash and deposits, inventories and property, plant and equipment
despite an increase in notes and accounts receivable-trade. Liabilities decreased by 10,914 million yen
from the end of the previous fiscal year to 242,762 million yen, mainly due to a decrease in loans
payable. Net assets increased by 2,457 million yen from the end of the previous fiscal year to 25,977
million yen, mainly due to an increase in retained earnings.
Here is a summary of the cash flow situation.
(Net cash provided by [used in] operating activities)
Net cash provided by operating activities amounted to 10,416 million yen (down 3,869 million yen
year-on-year), due to a decrease in cash-inflow—the total of net income before income taxes,
depreciation and amortization—and inventories during the current fiscal year.
(Net cash provided by [used in] investment activities)
Net cash used in investment activities amounted to 2,959 million yen (net cash of 2,683 million yen
used in the previous fiscal year) due to capital expenditures of 4,176 million yen during the current
fiscal year.
(Net cash provided by [used in] financing activities)
Net cash used in financing activities amounted to 10,844 million yen (net cash of 1,175 million yen
used in the previous fiscal year) due to a reduction in interest-bearing debt during the current fiscal year.
As a result, cash and cash equivalents at the end of the current fiscal year decreased by 3,571 million
yen from the end of the previous fiscal year to 16,589 million yen.
-4-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

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, 2011

Year ended
March 31, 2010

Year ended
March 31, 2009

8.3

7.2

5.7

11.9

13.0

11.3

17.8

13.7

39.8

3.0

3.9

1.3

(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
which interest is paid.
(3) Basic policy for profit distribution and dividends for the fiscal year ended March 31, 2011 and the fiscal
year ending March 31, 2012
The Unitika Group considers that the profit distribution to its shareholders is an important aspect of its
business, but management intends to cancel dividend payment for the fiscal year ended March 31, 2011,
with consideration on the business results and financial situation at the end of the fiscal year.
For the future, Unitika’s basic dividend policy is to conduct profit distribution to shareholders that is
appropriate to the Company’s financial results. At the same time, the Company intends to decide
dividend payment after considering the improvement of financial position and enhancing of internal
reserve for securing profit for shareholders from a long-term perspective.

-5-

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

2. Management Policies(1) Basic management policies
Having the corporate mission of connecting daily life with technologies, the Unitika Group has been
aiming to become a company that contributes to improvement of people’s lives and preservation ofenvironment, with social recognition. Management believes that the contribution to the society will
enhance its corporate value, which in turn will reward shareholders, while the Company promotes its
basic management policies: implementation of structural reform, establishment of a foundation as afunctional materials manufacturer and strengthening of its corporate structure and shareholders’ equity.
(2) Targeted management index
The Unitika Group places greater importance on amount of sales, operating income and ordinary incomethat represent the results of its business activities. The Group considers enhancing its shareholders’equity ratio and reducing interest-bearing debts to strengthen its financial position and places emphasison and manages cash flows with great care.
(3) Medium- to long-term business strategies and issues to be addressed
Although there are various uncertain factors that will affect the Company’s business performance, suchas the effects of the Great East Japan Earthquake, cost pressures due to soaring raw material and fuelprices, and foreign currency fluctuation, the Unitika Group will steadily implement measures stated in
Reform 2011, while reviewing the measures time to time in response to changes in business environment.
The Group will try to achieve its earnings target for the next fiscal year and upgrade its financial
condition as well as promptly improve and stabilize its earnings structure. The Unitika Group willcontinue to enhance efficiency of operations in business units whose structure was improved, such as theGarments, Lifestyle Materials, and Bedding fields, though it achieved the initial target of the businessstructural reform by the second year of Reform 2011. Concerning growth areas, the Group will strive toestablish a business entity that can achieve sustainable growth in the future by promoting improvement
and strengthening of its business operational capability in the field of functional materials, mainly
polymers and advanced materials, including projects that the Group has already started, such as
establishment of a joint venture company for manufacturing cotton spunlace and expansion of nylon film
production capacity at an overseas subsidiary.
Here is a summary of business strategies and issues to be addressed for each business.
Polymers:
In the Films business, the Company will further strengthen sales of the nylon film Emblem in the Asianmarket, and promote cultivation of new applications of industrial-use polyester films and sales expansionof its high-value-added polyester films. In the Resins business, the Company will accelerate developmentof a new type of nano-composite nylon resin, focus on the expansion of its use to the automobiles andelectrical and electronics equipment applications, develop a new and ultrahigh functional grade of UPolymer for the injection molding application, and also try to increase sales of ARROWBASE, an
environment-friendly water-based polyolefin cationic emulsion. In the Non-Woven Fabrics business, theCompany will strengthen cooperation with its subsidiary in Thailand to promote sales of non-woven
fabrics, notably Eleves, a bi-component composite spunbonded non-woven fabric, mainly in the overseas
market. The Company will also use production capacity in a cotton spunlace-manufacturing joint-venturecompany and expand sales of spunlace fabrics by launching newly-developed goods. Concerning
TERRAMAC, a biomass plastic, the Company has been improving the weaknesses of existing polylactic
acid, such as thermal resistance, durability and formability, and will further strengthen the expansion of
its use in each field.

-6-Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

Advanced Materials:
The Company will try to strengthen the domestic sales and exports of high-functional glass fiber products
and aims to immediately improve profitability of IC cloth by reviewing its cost structure. Regarding
activated carbon fibers, the Company will focus on cultivating the Asian market in the liquid phase fieldand expanding sales of various types of filters such as VOC removal sheets for automobile applicationsin the vapor phase field and expand market share and cultivate new applications of its high-grade glass
beads.
Fibers and Textiles:
In the Fibers and Textiles business, the Company will continue to review individual businesses, shake up
the product lineup, and thoroughly reduce costs to establish a stable earnings structure. In the industrial
materials business, the Company will create a sales structure to deal with the expansion of overseas
markets of vinylon fiber for reinforced concrete use including Asia, South America, and Africa, and to
improve profitability of short-fiber polyester by shifting to high-performance materials. In the Garments,
Lifestyle Materials, and Bedding business, the Company will streamline business operations to further
improve profitability by letting Unitika Trading Co., Ltd. play a central role.
Others and Healthcare & Amenity:
In the Healthcare & Amenity business, the Company will strengthen sales of functional dietary materials,
such as its mainstay product, Konjac Ceramide, and new food ingredients, β-cryptoxanthin andLactobionic acid, and also promote cultivation of new customers for health food, such as Byakugen
Houou, and creation of new products. In the Medical business, the Company will aim to raise market
share by strengthening sales of anti-thrombogenic catheters mainly for the circulatory system andfocusing on sales expansion of new products, and also develop new uses of enzymes and clinicaldiagnostic reagents, cultivate new customers for these products, and promote further cost reduction.
Regarding overseas business development, with demand in Asia including China growing, the Group will
try to expand sales of functional materials mainly in polymer and advanced materials fields. One of themeasures is production capacity expansion of a nylon film facility in its Indonesia subsidiary that started
in March 2011. The Unitika Group will strengthen global expansion of the nylon film business, one of its
core businesses.
Regarding R&D, the Company will place the next four years as a focused period, mainly the Polymer
business, and develop biomass plastic, functional resins, and heat-resistant film, which are used inelectrical and electronics equipment and industrial fields, by using both the Unitika Group’s polymer
design and control technologies and film-forming and stretching technologies.
Regarding overall cost reduction, in the fiscal year ending March 31, 2012, the Group will continue to
implement measures for reducing fixed costs as a part of its structural reforms, and thoroughly cut
variable costs, and will also efficiently manage funds to reduce interest-bearing debt.

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Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

3. Consolidated financial statements(1) Consolidated balance sheets(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2010)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures (net)
Machinery, equipment and vehicles (net)
Tools, furniture and fixtures (net)Land
Lease assets (net)
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Investments in capital
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets-8-

Current consolidated
fiscal year
(March 31, 2011)

20,19939,361
28,262
16,676
3,920
1,299
4,036
(175)
113,581

16,78641,89827,835
14,435
4,343
1,136
3,377
(233)
109,580

22,632
24,235
1,305
104,452
1,273
833
154,732

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

90
630
720

3
727
731

5,621
25
130
640
2,323
(579)
8,161
163,615
277,196

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

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

(Unit: Millions of yen)Previous consolidated
fiscal year
(March 31, 2010)

Current consolidated
fiscal year
(March 31, 2011)

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Current portion of bonds

24,971
77,66831,436400

Lease obligations
Income taxes payable
Provision for bonuses
Provision for loss on construction contracts

379
322
1,085
1

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

29
1,118
11,217
148,631
624
10,461
149,306

83,875920
10,867
2,809
4,318
170
2,085
105,045
253,676

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

23,798
1,661(4,734)(54)
20,67023,798
1,661(1,943)(55)
23,460

(429)
3
2,799
(3,219)
(846)

(49)
43
2,452
(3,569)(1,123)

3,695
23,519277,196

3,641
25,977
268,740

Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets-9-24,95273,89337,480

408
325
1,160


Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Rent income

Previous consolidated
fiscal year
(April 1, 2009 to
March 31, 2010)
182,239
148,299
33,93925,396
8,543

Current consolidated
fiscal year
(April 1, 2010 toMarch 31, 2011)
180,706
146,098
34,60724,093
10,513

181
101
90

180
102
90

188


38

Gain on sales of investment securities
Equity in earnings of affiliates
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Other personal expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on transfer of business
Compensation income for expropriation
Total extraordinary income
Extraordinary losses
Loss on disposal of noncurrent assets
Loss on valuation of investment securities
Business structure improvement expenses


191
1,009
1,763


1,013
1,425

3,722

3,544

8
1,188
910
5,829
4,476


1,164
1,110
5,819
6,119

20

299

589



108
719


299

866

424


1,063

1,392
698

Environmental expenses
Other
Total extraordinary loss
Income before income taxes and minority
interests
Income taxes-current
Income taxes-deferred
Total income taxes


1,457
3,387

634
748
3,898

1,808
407
(1,658)(1,251)

2,519
375
(341)
34

Income before minority interests
Minority interests in income
Net income


23
3,036

2,485
40
2,444

- 10 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

(Consolidated comprehensive income statement)(Unit: Millions of yen)
Current consolidated
fiscal year
(April 1, 2010 toMarch 31, 2011)
2,485



380

Deferred gains or losses on hedges39

Foreign currency translation adjustment
Share of other comprehensive income ofassociates accounted for using equity
method



(430)



(14)

Total other comprehensive income
Comprehensive income(Comprehensive income attributable to)Comprehensive income attributable toowners of the parent
Comprehensive income attributable tominority interests



(25)
2,460



2,513



(53)

Previous consolidated
fiscal year
(April 1, 2009 to
March 31, 2010)
Income before minority interests
Other comprehensive income
Valuation difference on available-for-salesecurities- 11 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

(3) Consolidated statements of changes in net assets
Previous consolidated
fiscal year
(April 1, 2009 to
March 31, 2010)
Shareholders’ equity
Capital stock
Balance at the end of previous period
Balance at the end of current period
Capital surplus
Balance at the end of previous period
Balance at the end of current period
Retained earnings
Balance at the end of previous period
Changes of items during the period
Net income
Reversal of revaluation reserve for land
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the end of previous period
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Total shareholders’ equity
Balance at the end of previous period
Changes of items during the period
Net income
Reversal of revaluation reserve for land
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period- 12 -(Unit: Millions of yen)
Current consolidated
fiscal year
(April 1, 2010 toMarch 31, 2011)

23,79823,79823,79823,798

1,661
1,661

1,661
1,661

(7,783)(4,734)

3,036
12
(0)
(3,049)(4,734)

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

(46)

(54)

(8)
0
(8)
(54)

(1)
0
(1)
(55)

17,62920,670

3,036
12
(8)
0
3,040
20,670

2,444
347
(1)
0
2,790
23,460Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

Previous consolidated
fiscal year
(April 1, 2009 to
March 31, 2010)(Unit: Millions of yen)
Current consolidated
fiscal year
(April 1, 2010 toMarch 31, 2011)

(498)

(429)

68
68
(429)

380
380
(49)

12

3

(8)
(8)
3

39
39
43

2,875

2,799

(12)
(63)
(76)
2,799

(347)

(347)
2,452

(3,909)(3,219)689
689(3,219)

(350)
(350)
(3,569)(1,520)

(846)

(12)
686
673
(846)

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

3,636

3,695

59
59
3,695

(54)
(54)
3,641

19,746

23,519

3,036
(8)
0
745

2,444
(1)
0
14

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Deferred gains or losses on hedges
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Revaluation reserve for land
Balance at the end of previous period
Changes of items during the period
Reversal of revaluation reserve for land
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Foreign currency translation adjustment
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period

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

Net income
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period- 13 -

3,773

2,457

23,51925,977

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

(4) Consolidated statements of cash flow
(Unit: Millions of yen)Previous consolidated
fiscal year
(April 1, 2009 to
March 31, 2010)

Current consolidated
fiscal year
(April 1, 2010 toMarch 31, 2011)

Net cash provided by (used in) operating activities

Income before income taxes and minority interests

1,808

2,519

Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for business structure improvement
Increase (decrease) in other provisionInterest expenses
Loss (gain) on disposal of noncurrent assets
Loss (gain) on sales of noncurrent assets
Loss (gain) on sales of investment securities

6,787
362
(437)
(2,556)
178
3,722
866
(20)
(188)

6,275
127
1,352
(493)
(52)
3,544
424
(299)

Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net(2,281)
12,608(1,567)(905)(2,677)
2,112
127
(720)


1,392

Sub-total

18,376

13,634

Interest and dividends income received
Interest expenses paid
Income taxes paid

298
(3,695)(692)

532(3,516)(233)

Net cash provided by (used in) operating activities

14,286

10,416

Net cash provided by (used in) investment activities
Decrease (increase) in time deposits
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Other, net

18
(28)
401
(3,831)
274
481

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

Net cash provided by (used in) investment activities(2,683)(2,959)Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Cash dividends paid

(3,147)
34,953(32,808)(400)(3)(3,444)24,756(31,322)(400)

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

231


(434)

(1,175)(10,844)

457

(183)

10,885(3,571)

Cash and cash equivalents at beginning of period

9,275

20,160Cash and cash equivalents at the end of the current fiscal year

20,16016,589- 14 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011(5) Notes regarding assumption of a going concern
Not applicable(6) Significant items that are the basis for preparation of consolidated financial statements
1. Scope of consolidation
The Company has 48 consolidated subsidiaries and 5 non-consolidated subsidiaries as of the end of thecurrent period under review. Major consolidated subsidiaries are Nippon Ester Co., Ltd. and Unitika
Trading Co., Ltd. Total assets, net sales, net income/loss (corresponding to equity interest) and retained
earnings (corresponding to equity interest) of the 5 non-consolidated subsidiaries (Akoh Unitec Service
Co., Ltd., Unitika Uji Kosan Co., Ltd., etc.) are small in value and do not significantly influence theconsolidated financial statements. The number of consolidated subsidiaries decreased by one from theend of the previous period due to liquidation.
2. Application of the equity method
The Company applies the equity method to the 5 non-consolidated subsidiaries and 2 affiliatedcompanies (Ador Co., Ltd. and another) as of the end of the current period under review. The number of
non-consolidated subsidiaries decreased by one from the end of the previous period due to liquidation.
3. Account settlement date, etc. of consolidated subsidiaries
Among consolidated subsidiaries, Thai Nylon Co., Ltd., Unitika America Corp., Unitika (Shanghai) Ltd.,
Emblem Asia Co., Ltd., Unitika Emblem China Ltd., Unitika Do Brasil LLC, Brascot LLC, Unitika(Beijing) LLC, Unitex Co., Ltd. and TUSCO Co., Ltd. settle their accounts on December 31, andUnitika Hong Kong Ltd. settles its accounts on February 28. For the purpose of preparing theconsolidated financial statements, the financial statements on respective dates are used, and a necessary
adjustment is made with regard to significant transactions conducted during the period between theabove-mentioned settlement date and the current consolidation date.
4. Accounting standards(1) Evaluation standards and method for significant assets
Marketable securities
Other marketable securities
With market values:

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

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

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

To cover payment of retirement benefits to employees, the Company provides for
retirement benefits based on the estimated amount of the retirement benefit obligationand the trust estate related to retirement benefit obligation (regarding some consolidated
subsidiaries, the retirement benefit obligation and pension assets) at the end of the fiscal
year ended March 31, 2011.
The transition difference due to a change in the accounting standards is equallyexpensed over 15 years.
The past service liabilities are amortized using the straight-line method over the averageremaining years of service of employees (generally 13 years) when the liability is
incurred.
Actuarial gains and losses are expensed using the straight-line method over the averageremaining years of service of employees (generally 13 years), allocated starting fromthe year each respective gain or loss is incurred.

- 16 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

Allowance for directors’ retirement bonuses
In the past, the Company and its consolidated subsidiaries provided for the amount payable atthe end of the subject term under the internal rule to cover payment of retirement bonuses todirectors (including executive officers). However, the Company and its consolidated
subsidiaries abolished the directors’ retirement bonus system in June 2006 and suspended thetransfer of such amount to allowance for directors’ retirement bonuses.
(4) Accounting standards for recognizing revenues and costs of construction contracts
The percentage-of-completion method has been applied to construction contracts if the outcome of
the construction activity is deemed certain on March 31, 2011 (the estimated percentage ofcompletion shall be based on the ratio of the cost incurred to the estimated total cost). The
completed-contract method has been applied to other construction contracts.
(5) Standards for translating important foreign currency assets or liabilities to Japanese currency
Foreign currency monetary assets and liabilities are converted into yen currency at the spot exchange
rate of the consolidated settlement date and exchange differences are treated as profit or loss.
Meanwhile, the assets and liabilities of overseas subsidiaries are converted into yen currency by the
spot exchange rate of the settlement date, and profits and expenses are converted into yen currency at
the average market rate during the period with the exchange differences included in the currency
exchange translation adjustment and minority interests.
(6) Interest relating to property for sale (inventories)
Interests paid in relation to some real estate for sale in progress among the real estate for sale held bysome consolidated subsidiaries are included in the acquisition amount of such real estate.
(7) Important hedge accounting method
The Company adopts deferred hedge accounting, and uses the method for translating foreign
currency receivables and payables on the basis of yen value cash flow fixed by forward contract for
exchange contracts that may satisfy requirements for the said method, and preferential procedures forinterest rate swaps that may satisfy requirements for preferential procedures.
(8) Items relating to amortization of goodwill
Goodwill is amortized using the straight-line method over 5 years.
(9) Scope of funds in consolidated statements of cash flows
Funds (cash and cash equivalents) stated in the consolidated statements of cash flows consist of cashon hand, demand deposits and short-term investments that are readily convertible into cash, areexposed to insignificant risk of changes in value and are redeemable in 3 months or less from eachacquisition date.
(10) Treatment of consumption taxes, etc.
The Company adopts the tax-excluding method.

- 17 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

(7) Changes in basic important matters for preparation of consolidated financial statements(Change in accounting policies)
Effective from the consolidated fiscal year ended March 31, 2011, the Company has adopted
Accounting Standards for Asset Retirement Obligations (ASBJ Statement No. 18, issued on March 31,2008) and Guidance on Accounting Standards for Asset Retirement Obligations (ASBJ Guidance No.21,
issued on March 31, 2008).
Consequently, operating income, ordinary income, and net income before income taxes decreased by 12
million yen, 21 million yen, and 164 million yen, respectively, in the consolidated fiscal year ended
March 31, 2011.
A change in Asset Retirement Obligations resulting from the adoption of the standards amounts to 233
million yen.
(8) Change in financial statement presentation
Consolidated statements of income
Effective from the consolidated fiscal year ended March 31, 2011, the Company has adopted Cabinet
Office Ordinance for Amendments to the Regulations on the Terminology, Formant, and Preparation of
Financial Statements (Cabinet Office Ordinance No. 5, issued on March 24, 2009) based on AccountingStandard for Consolidated Financial Statements (ASBJ Statement No. 22, issued on December 26,2008). As a result, income before minority interest is presented as an account item in the consolidated
income statement.
Gain on sales of investment securities (21 million yen in the consolidated fiscal year ended March 31,2011), which was stated separately in the consolidated fiscal year ended March 31, 2010, is included in
Other under non-operating income in the consolidated fiscal year ended March 31, 2011, since it fell
below 10/100 of the non-operating incomes.
Loss on valuation of investment securities, which was included in Other of extraordinary loss in the
consolidated fiscal year ended March 31, 2010, is stated separately in the consolidated fiscal year ended
March 31, 2011, since it exceeded 10/100 of the extraordinary loss. Loss on valuation of investment
securities, which was included in Other in the consolidated fiscal year ended March 31, 2010, was 2
million yen.
Consolidated statements of cash flow
Loss (gain) on sales of investment securities separately stated in net cash provided by (used in)operating activities is included in Other, since its quantitative materiality diminished. Loss (gain) on
sale of investment securities, which is included in Other in the consolidated fiscal year ended March 31,
2011, is −21 million yen.
Loss (gain) on valuation of investment securities, which was included in Other, net cash provided by(used in) operating activities in the consolidated fiscal year ended March 31, 2010, is stated separately
in the consolidated fiscal year ended March 31, 2011, since its quantitative materiality increased. Loss(gain) on valuation of investment securities, which was included in Other in the consolidated fiscal year
ended March 31, 2010, was 2 million yen.
Cash dividends paid separately stated in net cash provided by (used in) financing activities is includedin Other in the consolidated fiscal year ended March 31, 2011, since its quantitative materiality
diminished. Cash dividends paid, which is included in Other in the consolidated fiscal year ended March
31, 2011, is − 0 million yen.

- 18 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011(9) Supplemental information
Effective from the consolidated fiscal year ended March 31, 2011, the Company has adopted
Accounting Standard for Presentation of Comprehensive Income (ASBJ No.25, issued June 30, 2010).
However, the amount of Accumulated other comprehensive income and Total accumulated othercomprehensive income in the consolidated fiscal year ended March 31, 2010 are stated at the amount of
Valuation and translation adjustments and Total valuation and translation adjustments.
(10) Notes on consolidated financial statements(Consolidated comprehensive income statement)
Consolidated current fiscal year (April 1, 2010 to March 31, 2011)*1. Comprehensive income for the fiscal year prior to the current consolidated fiscal year
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests
Total

3,722 million yen
66
3,789

*2. Other comprehensive income for consolidated fiscal year prior to the current consolidated fiscal year
Other valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reverse for land
Foreign currency translation adjustment
Share of other comprehensive income of associates accounted
fro using equity method
Total- 19 -

68 million yen
(8)
(63)
736
(3)
729

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

(Segment information, etc.)
a. Segment information by business
The previous consolidated fiscal year (April 1, 2009 to March 31, 2010)

I Net sales andoperating income(loss)Net sales(1) Net sales to outside
customers(2) Inter-segment sales ortransfers
Total(Unit: Millions of yen)

Polymers

Environmental
Business/
Advanced
Materials

60,94225,90377,514

17,878

182,239



182,239

790

58

266

2,414

3,529

(3,529)

Fibers &TextilesHealth &Amenity,
OthersTotal

Elimination or Consolidated
corporate
total

61,73225,96277,78020,293

185,769(3,529)182,239

Operating expenses

52,84023,61578,267

19,075

173,800(104)

173,696

Operating income(or operating loss)

8,891

2,346

(487)

1,217

11,968(3,425)

8,543

II Assets, depreciation
expenses and capital
expenditures
Assets74,16325,35488,02362,355249,897
27,299277,196
Depreciation andamortization
2,868
779
1,768
838
6,254
532
6,787
Capital expenditures
1,731
190
951
408
3,282
414
3,696
(Note) 1. Among operating expenses, unallocatable operating expenses that are included in elimination or corporate amounted to3,513 million yen.
2. Among the Assets, the total company assets that are included in elimination or corporate amounted to 35,465 million yen.
The main items are investment of surplus funds (cash and deposits), long-term investment funds (investment securities)
and assets, etc. related to the Administration and the Research and Development Division of the parent company.
Revaluation reserve for business land of the parent company is not included in the respective business segments.

b. Segment information by geographic area
The previous consolidated fiscal year (April 1, 2009 to March 31, 2010)
Segment information by geographic area is omitted because sales and assets in Japan accounted formore than 90% of total sales (including inter-segment sales) and total assets of all geographic segments.
c. Overseas sales
The previous consolidated fiscal year (April 1, 2009 to March 31, 2010)
22,394I. Overseas sales (million yen)
182,239
II. Consolidated sales (million yen)
12.3
III. Ratio of overseas sales to consolidated sales (%)(Note) There were no segments whose sales (excluding inter-segment sales or transfers) accounted for
10% or more of consolidated sales.

- 20 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

d. Segment information
Current consolidated fiscal year (April 1, 2010 to March 31, 2011)
1. Summary of reportable segment
Unitika’s reportable segments are components of the Company for which separate financial
information is available. These segments are subject to regular reviews by the Board of Directors todecide the distribution of managerial resources and evaluate business results.
The Company sets up divisions by product and service in its head office. Each division formulates
comprehensive domestic and overseas strategies for its products and services and conducts businessactivities according to the strategies.
Unitika consists of segments by product and service based on divisions. The following three are its
reportable segments: Polymers, Advanced Materials, and Fibers & Textiles.
The Polymers segment manufactures and markets films, resins, and non-woven fabrics. The
Advanced Materials segment makes and sells glass fibers. The Fibers & Textiles produces anddistributes various types of fibers (threads, cotton, textiles and fabrics and the like).
2. Information on the amount of net sales, profit or loss, assets and other items by reportable segment
The previous fiscal year (April 1, 2009 to March 31, 2010)(Unit: Millions of yen)
Reportable segment

Polymers

Advanced
Materials

Fibers &Textiles

Total

Other
(Note 1)

Total

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

Net sales
Net sales to outside
customers
60,942
15,54377,514
154,000
28,239182,239
182,239Inter-segment sales ortransfer
790
50
266
1,106
2,429
3,536
(3,536)

Total
61,732
15,59377,780155,107
30,668
185,775(3,536)
182,239
Segment income (loss)
8,891
1,488
(487)
9,892
2,077
11,970(3,426)
8,543
Segment assets
92,746
19,75375,089187,589
52,712
240,30236,893
277,196
Other items
Depreciation andamortization
2,790
703
1,897
5,390
1,077
6,468
318
6,787
Increase in property, plantand equipment andintangible assets
1,731
179
951
2,862
422
3,284
412
3,696
(Note) 1. The Other category comprises business segments that are not included in reportable segments. It includes
Environmental business, Medical business, Healthcare & Amenity business, and Real Estate-related business and thelike.
2. Adjustment details are as follows.
(1) Adjustment of —3,426 million yen posted in segment income (loss) includes corporate expenses that are notdistributed to each reportable segment.
(2) Adjustment of 36,893 million yen posted in segment assets include investment of surplus funds (cash anddeposits) by the parent company, long-term investment funds (investment securities) and assets, etc. related to the
Administration and the Research and Development Division of the parent company.
(3) Adjustment of 318 million yen posted in depreciation and amortization is depreciation and amortization ofcommon assets that are not distributed to each reportable segment.
(4) Adjustment of 412 million yen posted in increase in property, plant and equipment and intangible assets is anincrease in common assets that are not distributed to each reportable segment.
3. Segment income (loss) is adjusted with operating income presented in consolidated income statement.

- 21 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

Current consolidated fiscal year (April 1, 2010 to March 31, 2011)(Unit: Millions of yen)
Reportable segment

Polymers

Advanced
Materials

Fibers &Textiles

Total

Other
(Note 1)

Total

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

Net sales
Net sales to outside
customers
67,016
14,931
77,095
159,043
21,662
180,706
180,706

Inter-segment sales or
39
20
212
272
1,661
1,933
(1,933)transfer
Total
67,055
14,95177,308159,315
23,324
182,640(1,933)
180,706
Segment income
10,5501,771
840
13,161
952
14,114(3,600)10,513
Segment assets
89,712
18,66375,341
183,71751,069234,786
33,953
268,740
Other items
Depreciation andamortization
2,615
659
1,762
5,037
925
5,963
312
6,275
Increase in property, plantand equipment andintangible assets
1,644
369
804
2,818
1,189
4,008
709
4,717
(Note) 1. The Other category comprises business segments that are not included in reportable segments. It includes
Environmental business, Medical business, Healthcare & Amenity business, and Real Estate-related business and thelike.
2. Adjustment details s are as follows.
(1) Adjustment of —3,600 million yen posted in segment income (loss) includes corporate expenses that are notdistributed to each reportable segment.
(2) Adjustment of 33,953 million yen posted in segment assets include investment of surplus funds (cash anddeposits) by the parent company, long-term investment funds (investment securities) and assets, etc. related to the
Administration and the Research and Development Division of the parent company.
(3) Adjustment of 312 million yen posted in depreciation and amortization is depreciation and amortization ofcommon assets that are not distributed to each reportable segment.
(4) Adjustment of 709 million yen posted in increase in property, plant and equipment and intangible assets is anincrease in common assets that are not distributed to each reportable segment.
3. Segment income (loss) is adjusted with operating income presented in consolidated income statement.

(Supplemental Information)
Effective from the consolidated fiscal year ended March 31, 2011, the Company has adopted AccountingStandard for Disclosures about Segments of an Enterprise and Related Information (ASBJ Statement
No.17, issued March 27, 2009) and Guidance on the Accounting Standard for Disclosures about
Segments of an Enterprise and Related information (ASBJ Guidance No.20, issued March 21, 2008).
(Per share information)
Previous consolidated fiscal year
(April 1, 2009 to March 31, 2010)
Net assets per share: 41.70 yen
Net income per share: 6.39 yen

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

Information on net income per share after full dilution
Information on net income per share after full dilution
is omitted, since there is no potential common stock.
is omitted, since there is no potential common stock.
(Note) The basis for the calculation of net income per share is as follows:
Previous
Current
consolidated
consolidated
fiscal year
fiscal year
(April 1, 2009 to (April 1, 2010 toMarch 31, 2010) March 31, 2011)
Net income (million yen)
3,036
2,444
Amount not attributable to common stockholders (million yen)
Net income attributable to common stock (million yen)
3,036
2,444
Average number of common stock during the fiscal year (thousand shares)
475,513475,415- 22 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

(Material subsequent events)
1. Issuance of the first unsecured convertible bonds with stock acquisition rights (moving strike
convertible bonds) through third party allotment
Unitika Ltd. resolved at its Board of Directors’ Meeting held on March 22, 2011 that the Company would
issue its first unsecured convertible bonds with stock acquisition rights with a face value of 5,000 million
yen through third party allotment as described below. On April 8, 2011, the payment of full amount wascompleted as scheduled.
(1) Issue date(2) Total number of the stockacquisition rights(3) Issue price of the corporate
bonds and the stockacquisition rights(4) Number of dilutive
common stocks throughthe issuance

April 8, 201140

Amount paid per corporate bond:125,000,000 yen (100 yen per face value of 100 yen)Amount paid per stock acquisition right: No payment is required in exchange for the stockacquisition rights.
Number of dilutive common stocks at the initial conversion price (66 yen): 75,757,575
Number of dilutive common stocks at the minimum conversion price (33 yen): 118,263,000(The number of dilutive common stocks at the minimum conversion price described above isthe maximum accumulated number of common stocks allocated by the conversion of thestock acquisition rights.)
Number of dilutive common stocks at the maximum conversion price (99 yen): 50,505,050(5) Funds to be raised
4,990,000,000 yen(Estimated net amount)
The estimated net amount is an amount obtained by deducting the expenses of issuing thebonds with stock acquisition rights from the total face value of the bonds with stockacquisition rights (5,000,000,000 yen).
(6) Maturity date
The bonds shall be redeemed at 100 yen per face value of 100 yen on April 12, 2013.
(7) Yields
The bonds shall not bear any interest.
(8) Class and number of
The class of shares to be issued upon the exercise of the stock acquisition rights shall be theshares to be issued upon
Company’s common stock. The number of shares to be issued upon the exercise of the stock
the exercise of the stockacquisition rights shall be the amount obtained by dividing the total amounts paid to obtainacquisition rights
the bonds with stock acquisition rights exercised by the conversion price described below.
Any fraction less than one share shall be disregarded.
(9) Conversion price
The initial conversion price is set at 66 yen.
The initial conversion price of the bonds with stock acquisition rights is equivalent to 100%of the closing price of the Company’s common stocks on the Tokyo Stock Exchange, Inc. on
the date on which the issuance of the bonds with stock acquisition rights was resolved(March 22, 2011).
(10) Revision of conversion
After the issuance of the bonds with stock acquisition rights, the conversion price shall be
price
revised to the price equivalent to 90% of the average closing prices of the Company’scommon stock traded on the Tokyo Stock Exchange, Inc. over the last 5 consecutive market
days ending on the third Friday of each month.
The minimum conversion price is set at 33 yen (equivalent to 50% of the closing price on thedate on which the issuance of the bonds with stock acquisition rights was resolved). The
maximum conversion price is set at 99 yen (equivalent to 150% of the closing price on dateon which the issuance of the bonds with stock acquisition rights was resolved).
(11) Adjustment of conversion In the event of any change or possibility of a change in the number of shares of the
priceCompany’s common stock due to particular reasons after the issuance of the unsecured
convertible bonds with stock acquisition rights, the conversion price should be adjusted by
the following formula.
Conversion price after adjustment = Conversion price before adjustment × (Number ofoutstanding shares of common stock＋Number of allocated shares of common stock ×
Amount paid per stock ÷ Market price) ÷ (Number of outstanding shares of common stock＋
Number of allocated shares of common stock)
Period from April 11, 2011 to April 11, 2013(12) Exercise period of thestock acquisition rights(13) Conditions to exercise the Partial exercise of one stock acquisition right is not allowed.
stock acquisition rights(14) Method of offering andThird party allotment to Nomura Securities Co., Ltd.
allocation (allotted party)(15) Use of fund
The Company plans to use the fund for investment and loan to its subsidiary in Indonesia(P.T. Emblem Asia) and R&D in the Polymers business (films, resins, and non-woven
fabrics), etc.

- 23 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

2. Exercise of the first unsecured convertible bonds with stock acquisition rights
The Company’s first unsecured convertible bonds with stock acquisition rights issued on April 8, 2011were partially exercised from April 11, 2011 to April 30, 2011 as follows:(1) Number of the stock acquisition rights exercised(2) Number of common stocks issued(3) Total exercise amount(4) Exercise price(5) Outstanding amount(6) Increase in capital stock(7) Increase in legal capital surplus

613,227,513 shares
750,000,000 yen
56.7 yen per share
4,250,000,000 yen
375,000,000 yen
375,000,000 yen- 24 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

4. OtherTransfer of directors
As of June 29, 2011
1. Candidate for position of auditor
Toshiro Yoshida (current full-time auditor of Terabo Co., Ltd.)
2. Auditor to be retired
Taro Tokuzawa (full-time Auditor)
Career summary of candidate for position of auditor
Toshiro Yoshida (date of birth: September 12, 1948)
Employment history

April 1971
April 2002
April 2005
June 2009
June 2010

Joined Unitika, Ltd.
General Manager of General Affairs Department
Executive Officer
Senior Executive Officer
Retired from position as Senior Executive Officer
Full-time auditor of Terabo Co., Ltd.

- 25 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

5. Supplementary materials(1) Results and earnings forecast for fiscal year ending March 2012 (consolidated)

Consolidated

FY ended
March 2010
FY ended
March 2011
FY ended
March 2012
Comparison
with prioryear(Millions of yen)
Ordinary
Net income
incomeNet sales

OperatingincomeFull year

182,239

8,543

4,476

3,036

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

89,281
180,706
85,000178,500(4,281)

4,517
10,5134,500
12,500
(17)

2,243
6,119
2,500
8,000
257

1,149
2,444
1,000
3,500
(149)

Full year (forecast)(2,206)

1,987

1,881

1,056

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

Net sales to outside
customers
FY ended
Component ratio (%)
March 2010
Operating income
Component ratio (%)
Net sales to outside
customers
Results for
FY endedcurrent fiscal
Component ratio (%)
March 2011year
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 ended
Net sales to outside
March 2012
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

60,942

15,54377,51428,239

182,239

33.4
8,891
104.1

8.5
1,488
17.4

42.5
(487)
(5.7)

15.5
2,077
24.3


(3,426)(40.1)

100.0
8,543
100.0

67,016

14,931

77,095

21,662



180,706

37.1
10,550
100.4

8.3
1,771
16.8

42.7
840
8.0

12.0
952
9.1


(3,600)(34.2)

100.0
10,513
100.0

6,074

(612)

(419)

(6,577)



(1,533)

10.0

(3.9)

(0.5)

(23.3)



(0.8)

1,659

283

1,327

(1,125)

(174)

1,970

18.7

19.0



(54.2)

5.1

23.1

69,00015,50077,00017,000

178,500

38.7
10,600
84.8

8.7
2,000
16.0

43.1
1,500
12.0

9.5
1,700
13.6


(3,300)(26.4)

100.0
12,500
100.0

1,984

569

(95)

(4,662)(2,206)

3.0

3.8

(0.1)

(21.5)



(1.2)

50

229

660

748

300

1,987

0.5

12.9

78.6

78.6

(8.3)

18.9

Other

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

FY ended
March 2009
FY ended
March 2010

Capitalexpenditures

Depreciation(Property,
plant andequipment)

R&D
expenditures

Interest-bearing
liabilities (endof fiscal year)

Financialaccountbalance

Number offull-time
employees(persons)

Full year

8,215

7,264

4,394

194,744(3,486)

5,437

Full year

3,566

6,592

3,866

193,380(3,438)5,037- 26 -

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

FY ended
March 2011
FY ended
March 2012

Full year

4,437

6,106

Full year(forecast)

7,633

5,758

- 27 -

3,615

182,550(3,261)

4,845

Unitika Ltd. (3103) Financial Report for Fiscal Year ended March 31, 2011

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

FY ended
March 2009
FY ended
March 2010
FY ended
March 2011

Cash flowfrominvestment
activities

Cash flowfromfinancing
activities

Cash and cash equivalents at
end of fiscal year

Full year

4,977(7,419)

(505)

9,275

Full year

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

20,160

Full year

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

16,589- 28 -