Member of Financial Accounting Standards Foundation

Financial Results for the 1st Quarter of the Fiscal Year Ending March 31, 2010
August 4, 2009
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
Expected submission of quarterly report: August 13, 2009
Expected commencement date for paying dividend: –TEL: 81-6-6281-5721(Figures rounded to nearest million yen.)
1. Consolidated performance for 1st quarter of fiscal year ending March 31, 2010 (April 1, 2009 to June 30, 2009)(1) Consolidated performance (accumulation)(Percentages represent changes from same period in previous year.)Net sales
Q1 of FY ending March 31, 2010
Q1 of FY ended March 31, 2009

Million yen
42,53952,605%(19.1)-

Operating income

Ordinary income

Million yen
1,086
1,155

Million yen
112
1,005

Quarterly net income per share

%
(6.0)
-

Million yen
54
122

%
(55.7)-

Quarterly net income per share after full dilution

Yen
0.11
0.26

Q1 of FY ending March 31, 2010
Q1 of FY ended March 31, 2009

Quarterly net income%(88.9)-Yen-(2) Consolidated financial situation
Total assets
Q1 of FY ending March 31, 2010
FY ended March 31, 2009

Net assets

Million yen
274,605
282,843

Capital adequacy ratio

Million yen
20,576
19,746

Net assets per share

%
6.2
5.7

Yen
35.59
33.88

(Reference) Shareholders’ equity 1st quarter of fiscal year ending March 31, 2010: 16,923 million yen Fiscal year
ended March 31, 2009: 16,109 million yen
2. Dividend payment
Dividend per share(Base date)

End of Q1

End of Q2Yen

FY ended March 31, 2009
FY ending March 31, 2010-

FY ending March 31, 2010 (forecast)End of Q3

Year end
Yen

Annual

Yen
0.00

-

Yen
0.00

Yen
0.00

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, 2010 (April 1, 2009 to March 31, 2010)(Percentages represent changes from same period in previous year.)Net sales
Million yen
Six-month period ending
September 30, 2009
Fiscal year ending March 31, 2010

Operating income% Million yen

87,000 (19.3)
182,000 (13.2)

3,500
8,500

Ordinary income% Million yen
36.7
9.4

1,500
4,000

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

1% Million yen
21.3
19.8

Net income
per share

Net income

500
3,500

%

Yen

(4.2)
-

1.05
7.36

Member of Financial Accounting Standards Foundation

4. Others(1) Changes in significant subsidiaries during the term (changes in specified subsidiaries accompanying change of scopeof consolidation): No(2) Adoption of simplified accounting method and special accounting practices for preparation of quarterly consolidated
financial statements: Yes(Note) For details, please refer to [Qualitative information and financial statements] “4. Others” on page 4.
(3) Changes in accounting principles, procedures and presentations for preparation of quarterly consolidated financial
statements (those included in “Changes in Important Matters for Preparation of Quarterly Consolidated Financial
Statements”)
 Changes associated with revision of accounting standards: Yes Other changes: No(Note) For details, please refer to [Qualitative information and financial statements] “4. Others” on page 4.
(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, 2010: 475,969,000 sharesFiscal year ended March 31, 2009: 475,969,000 shares Number of treasury stocks at end of term
1st quarter of the fiscal year ending March 31, 2010: 435,403 sharesFiscal year ended March 31, 2009: 430,885 shares Average number of shares outstanding during the term (quarterly consolidated accumulated period)
1st quarter of the fiscal year ending March 31, 2010: 475,535,087 shares
1st quarter of the fiscal year ended March 31, 2009: 475,572,018 shares* 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 the assumptions used as a basis for performance forecasting and points to note when using theperformance forecast, please refer to [Qualitative information and financial statements] “3. Qualitative information on theforecast of consolidated performance” on page 4.

2

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2010

[Qualitative information and financial statements]
1. Qualitative information on consolidated performance
In the first quarter of the fiscal year (April 1, 2009 to June 30, 2009), the domestic economy as a whole remained
under pressure, with capital expenditure decreasing and the employment situation worsening, although there weresigns that the rate of deterioration of the economy was slowing down. Under these conditions, net sales andincomes fell short of those in the previous fiscal year: net sales of 42,539 million yen (down 19.1% year-on-year),
operating income of 1,086 million yen (down 6.0% year-on-year), ordinary income of 112 million yen (down
88.9% year-on-year) and quarterly net income of 54 million yen (down 55.7% year-on-year).
Here is a summary of business by segment.
[Polymers]
The film business as a whole showed a recovery trend. Although demand for packaging film was weak due tosluggish consumer spending, there were indications that the industrial film market had hit a bottom and the
profitability of the nylon film business showed improvement in the overseas market. In the resin business, demand
from the automobile, electronics and electronic component fields was heading toward recovery, while demand
from the semiconductor and machinery fields remained very weak. Profitability did not improve due to thepressure on selling prices. In the nonwoven fabrics business, shipment of fabrics for sanitary material, diaper andcosmetic sundry goods uses remained steady, since they were less affected by the economic downturn, but
shipment of spunbond fabrics for industrial material uses, such as automobile components and construction
materials, was sluggish.
[Environmental Business/Advanced Materials]
The profitability of the environmental business improved due to the implementation of restructuring measures,
although sales continued to decrease as a result of a decline in public-works orders and intensified pricecompetition. In the advanced materials business, shipment of activated carbon fibers for liquid phase fields andshipment of glass beads for road construction use were strong; however, shipment of glass fibers for industrial uses,
especially construction, civil engineering works and automobiles, failed to grow. Demand for IC cloth remained
low, despite progress in inventory adjustment. As a result, the profitability of the advance materials business did
not recover.
[Fibers & Textiles]
In the synthetic fiber business, shipment of both long staple and short-fiber polyester remained sluggish, due toprolonged weak demand from general clothing use and a decline in demand from industrial use. In the vinylon
fiber business, the export of vinylon fiber for reinforced concrete use suffered due to inventory adjustment, andshipment for other industrial uses also declined, narrowing profit margins. In the meantime, the natural fiber
business, mainly for the uniform use, remained under significant pressure, although shipment of certain materials
for general clothing use remained steady. The closure and downsizing of factories due to withdrawal from thenylon long staple business and the restructuring of the natural fiber business, as one of the business structure
improvement measures implemented by the Company, progressed as scheduled.
[Health & Amenity, Others]
In the health & amenities business, shipment of catheters in the medical field and health supplement grew almost
in line with the budget. In other business, sales of condominiums rose.

2. Qualitative information on consolidated financial positions
Total assets decreased by 8,238 million yen from the end of the previous fiscal year to 274,605 million yen. Thiswas mainly due to a decrease in notes and accounts receivable-trade and inventories. Liabilities decreased by 9,068
million yen from the end of the previous fiscal year to 254,029 million yen. This is mainly due to a decrease innotes and accounts payable-trade. Net assets increased by 830 million yen from the end of the previous fiscal year
to 20,576 million yen. This is mainly due to increases resulting from foreign currency translation adjustments.
Here is a summary of the cash flows situation.
(Net cash provided by [used in] operating activities)
Net cash provided by operating activities amounted to 2,553 million yen (up 69.2% year-on-year) due to adecrease in notes and accounts receivable-trade and inventories during the first quarter of the fiscal year ending
March 31, 2010.
(Net cash provided by [used in] investment activities)
Net cash used in investment activities amounted to 601 million yen (net cash of 1,944 million yen used during
the same period last year) due to capital expenditures of 905 million yen during the first quarter of the fiscal year
ending March 31, 2010.
(Net cash provided by [used in] financing activities)
Net cash used in financing activities amounted to 1,147 million yen (net cash of 87 million yen used during thesame period last year) due to reduction of interest-bearing liabilities during the first quarter of the fiscal year
ending March 31, 2010.
As a result, cash and cash equivalents at the end of the first quarter of the fiscal year ending March 31, 2010
increased by 961 million yen from the end of the previous fiscal year to 10,237 million yen.
-3-

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2010

3. Qualitative information on the forecast of consolidated performance
Since the performance for the first quarter of the fiscal year ending March 31, 2010 was almost in line with theplan, the company did not revise its six-month and full-year forecasts of consolidated performance announced on
May 15, 2009.

4. Others(1) Changes in significant subsidiaries during the term (changes in specified subsidiaries accompanying change ofscope of consolidation):
Not applicable(2) Adoption of simplified accounting method and special accounting practices for preparation of quarterly
consolidated financial statements:
In computing corporate income taxes, some consolidated subsidiaries took only major items into account interms of additions and deductions for the income and tax credits.
(3) Changes in accounting principles, procedures and presentations for preparation of quarterly consolidated
financial statements
 For calculating revenues and costs of construction contracts, the Company formerly applied thepercentage-of-completion method to projects with a contract value of 50 million yen or more as well as
construction period of more than one year, and the completed-contract method to other construction contracts.
Effective from the first quarter of the fiscal year ending March 31, 2010, the Company has adopted the
Accounting Standard for Construction Contracts (Accounting Standards Board of Japan Statement No.15,
issued on December 27, 2007) and the Guidance on Accounting Standard for Construction Contracts(Accounting Standards Board of Japan Guidance No. 18, issued on December 27, 2007). Thus, thepercentage-of-completion method is applied to construction contracts that commenced in the first quarter ofthe fiscal year for which the percentage of progress during the period can be estimated with reasonableaccuracy (the percentage of completion shall be estimated based on the percentage of the cost incurred to theestimated total cost). The completed-contract method is applied to other construction contracts.
Consequently, net sales increased by 99 million yen, while operating income and ordinary income rose by 17
million yen, respectively. Quarterly net loss before income taxes decreased by 17 million yen.
(Additional information) The Company recorded a provision for losses on construction contracts from the first quarter of the fiscal
year, reflecting anticipated future losses on uncompleted construction projects whose amounts could bereasonably estimated. Consequently, gross profit, operating income and ordinary income each decreased bysix million yen. Quarterly net loss before income taxes increased by six million yen.
(4) Critical events, etc., regarding the assumption of a going concern
Since the Unitika Group’s net assets amounted to 19,746 million yen in the previous consolidated fiscal year, theCompany is now in violation of a restrictive financial covenant regarding the long-term loans of 20,000 million
yen. However, management does not consider that there will be critical uncertainties regarding the assumption ofa going concern, since the Company will implement the following measures in accordance with Reform 2011, its
new medium-term management plan, which was approved by a meeting of the board of directors held on March
19, 2009.
 In order to bring about radical change in earnings, the Company will promote structural reform, which consistsof measures for improving the business structure of money-losing and unprofitable businesses and reducing
fixed costs.
 Management will concentrate the Company’s resources on growth areas and promote a growth strategy to
improve and strengthen its business by placing functional materials such as polymers and functional
components as a core business.
The Company aims to post ordinary income of around 10,000 million yen in the final year of the medium-termplan by implementing the above measures.
Meanwhile, regarding the above restrictive financial covenant, as a result of each financial institution’s decision,an agreement was established to refrain from exercising the right of claim to accelerate the loan maturity. Thisremains unchanged in the first quarter of the fiscal year.

-4-Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2010

5. Quarterly financial statements(1) Consolidated quarterly balance sheets
End of Q1 of FY ending March
2009(June 30, 2009)(Unit: Millions of yen)
Condensed consolidatedbalance sheet for previous FY(March 31, 2009)

10,271
31,861
37,612
16,969
3,971
6,296
(130)
106,852

9,331
36,981
38,592
18,306
4,427
7,574
(142)
115,070

104,71153,441
158,153

104,683
53,653
158,337

156
743
899

177
682
859

10,198(1,498)8,700
167,753274,605

10,155(1,579)8,576
167,773282,843

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-5-Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2010

End of Q1 of FY ending March
2009(June 30, 2009)(Unit: Millions of yen)
Condensed consolidatedbalance sheet for previous FY(March 31, 2009)

21,284
81,61931,608
400
190
418
6
9

26,52080,811
32,714
400
592
712
53

2,688
12,899151,126

3,675
12,890158,370

400
79,9853,726
200
18,591
102,902
254,029400
80,418
4,742
342
18,824
104,727
263,097

23,798
1,661(7,729)(46)
17,683

23,798
1,661(7,783)(46)
17,629

(351)

(498)

10
2,875
(3,295)(759)
3,652
20,576274,605

2,875(3,909)(1,520)3,636
19,746
282,843

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
Bonds payable
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

-6-

12

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2010

(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
Equity in earnings of affiliates
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
Business structure improvement expenses
Other
Total extraordinary loss
Quarterly net income (loss) before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Minority interests in income (loss)
Quarterly net income

Three-month period ended June30, 2008(April 1, 2008 to June 30, 2008)
52,605
43,692
8,912
7,756
1,155

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

79
70
31
1,269
1,451

62
64
164
365
657

971
630
1,601
1,005

911
94
625
1,631
112

31
31

10
10

182
257
152
592
445
117
186
304
18
122

176
135
18
330
(207)
94
(266)
(171)
(90)
54

-7-

Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2010

(3) Consolidated quarterly statements of cash flows(Unit: Millions of yen)Three-month period ended June30, 2008(April 1, 2008 to June 30, 2008)

Three-month period ended June30, 2009(April 1, 2009 to June 30, 2009)

445

(207)

1,711

1,628

Increase (decrease) in allowance for doubtful
accounts

22(15)

Increase (decrease) in provision for businessstructure improvement

-

(986)

Net cash provided by (used in) operating activities
Quarterly net income (loss) before income taxes
Depreciation and amortization

971

911

-

(164)

Decrease (increase) in notes and accounts
receivable-trade

6,459

5,215

Decrease (increase) in inventories(1,928)2,897

Increase (decrease) in notes and accounts
payable-trade(2,686)(5,326)Other(2,365)(398)

Sub-total

2,628

3,554

Interest and dividends income received

157

143

Interest expenses paid

(558)

(688)

Income taxes paid

(717)

(456)

Net cash provided by (used in) operating activities

1,509

2,553

Decrease (increase) in time deposits

31

22

Purchase of investment securities

(5)

(11)

Proceeds from sales of investment securities-

330

Purchase of property, plant and equipment(1,984)(905)

Proceeds from sales of property, plant andequipment

207

18

Other

(193)

(55)

(1,944)(601)

Net increase (decrease) in short-term loans payable

(744)

594

Proceeds from long-term loans payable

7,640

4,641

Repayment of long-term loans payable(5,913)(6,297)

Cash dividends paid

(892)

(1)

Other

(177)

(85)

Net cash provided by (used in) financing activities(87)(1,147)

Effect of exchange rate change on cash and cash
equivalents

(313)

158

Net increase (decrease) in cash and cash equivalents

(835)

961

Cash and cash equivalents at beginning of period

13,2099,275

Cash and cash equivalents at end of period

12,374

10,237

Interest expenses
Loss (gain) on sales of investment securities

Net cash provided by (used in) investment activities

Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities-8-Unitika Ltd. (3103)

Financial results for 1st quarter of fiscal year ending March 31, 2010

(4) Notes on going concern assumption
Not applicable(5) Segment information
Segment information by businessThree-month period ended June 30, 2008 (April 1, 2008 to June 30, 2008)
Environmental
Fibers &Polymers
Business/Advance
Textiles(Millions ofd Materials(Millions ofyen)(Millions of yen)
yen)

Health &Amenity,
Others(Millions of
yen)

Total
(Millions ofyen)

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

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

17,818
941

7,067
192

23,587
208

4,132
820

52,6052,164(2,164)52,605-

Total

18,7597,259

23,795

4,953

54,769(2,164)52,605

1,466

(15)

60

191

1,702

(546)

1,155

Total
(Millionsof yen)Eliminationor corporate(Millions ofyen)Consolidated
total(Millions ofyen)Operating income (loss)

Three-month period ended June 30, 2009 (April 1, 2009 to June 30, 2009)
Polymers(Millionsof yen)Environmental
Fibers &Business/Advance
Textilesd Materials(Millions of(Millions of yen)
yen)

Health &Amenity,
Others(Millions ofyen)

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

1,395
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)

Segment information by geographic area
Three-month period ended June 30, 2008 (April 1, 2008 to June 30, 2008) and three-month period ended June30, 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, 2008 (April 1, 2008 to June 30, 2008)
I. Overseas sales (million yen)
8,133
II. Consolidated sales (million yen)
52,605
III. Ratio of overseas sales to consolidated sales (%)
15.5(Note) There were no segments whose sales (excluding inter-segment sales or transfers) exceeded 10% of consolidated
sales.
Three-month period ended June 30, 2009 (April 1, 2009 to June 30, 2009)
I. Overseas sales (million yen)
5,078
II. Consolidated sales (million 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.
(6) Notes on significant changes in the amount of shareholders’ equity
Not applicable-9-