Dynamic strength envisioning the future creates the value to advance into tomorrow.

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1 Business Guide

2 Philosophy... Dynamic strength envisioning the future creates the value to advance into tomorrow. The basis of both the creation of a better society and the solution to global environmental problems is people s lifestyles. To enrich the daily lives of each member of society, we must bring them more happiness and a greater feeling of satisfaction. We consider this our mission. We maintain an all-in-one system and global network that mobilize our concerted capabilities spanning raw materials procurement, R&D, planning and proposals, production, and distribution. Unitika Trading Co., Ltd. aims to be an influential corporation that creates value in all manner of ways as a manufacturer and trading company, not only through all the materials and products of the Unitika Group with its 120-year history, but also through dynamic solutions services and footwork. For lifestyles, society, and the global environment, into tomorrow, and beyond our passion for creativity and our solidarity are the sources of our vitality. 1

3 Our For You 4U For people s lives. For a better society. Through our proprietary technology and networks with customers, we contribute to people s lives and the environment, and provide products and services that resonate with each individual customer. To achieve this, we promise four Us. That is our motto: For You. Unique Creating entirely new products with unique technologies Useful Truly being useful to the world Universal Disseminating broadly to the world Unite Deepening ties with customers and building trust relationships 2

4 Activities... Creating new value through our concerted capabilities, covering everything from materials development, planning, and production, to distribution 4 Makes Quality Value Value chain Finance Risk management Marketing Logistics Textile & Apparel Business Sales Business Production Planning Overseas Business R&D Ladies & Men s Sports & Innerwear Uniform Lifestyle 3

5 Textiles and apparel, industrial materials, original solutions. Leveraging synergies to move dynamically into new territory. The lines of business we are engaged in can be roughly divided into textiles and apparel, and industrial materials. In the textiles and apparel field, we respond to customer needs through an all-in-one system that covers everything from filament and spun, textiles, secondary products, and distribution. We create Japan-quality high value-added products in coordination with overseas production centers. In the industrial materials field, we leverage our dynamic network as a manufacturer and trading company. We provide original materials for all business types, from lifestyle-related to industry-related. Moreover, in both fields, we mobilize our concerted capabilities in each of our departments through mutual collaboration with other departments. We will capitalize on the resulting synergies to construct value chains and develop both our home market of Japan and with an eye toward the whole world in our global expansion. 4

6 Development... Research and development capabilities to capture the present and illuminate the future. Creating originality as a manufacturer and trading company. As a manufacturer, we have R&D capabilities as the wellspring of our originality. We focus mainly on all manner of research and development related to textiles, starting from filament and including spun yarn, textured yarn, weaving/knitting, dyeing, and finishing. We support an all-in-one system that undertakes everything from the materials stage to the product stage, transcending field of application. 5

7 Our Strength and Pride in Creative Abilities If there is no product to fulfill a customer s needs, we will create it. This is our great strength. As a trading company with manufacturing functionality, we listen directly to customers opinions and develop new products through close communication, as well as enhancing our existing products. Or we will propose the seeds born from our daily R&D activities in light of market analysis. This is the strength we are proud of and at the same time a source of joy. Varied Technical Capabilities Starting with Textiles At the foundation of our technical development, inherited from the expertise of the Unitika Group with its history of more than 120 years, is our polymer technology starting from our textile development activities. Presently, we retain world-class technical development capabilities related to textiles, and our technologies ranging broadly from synthetic products to nonwoven fabrics that originated from a century of history are alive in the quality of all the product lines we are engaged in. To deliver even more precise solutions to our customers, we will create surprising, impressive, and competitive products, and to deliver even more precise solutions to our customers, we continue our daily activities in technical development areas. 6

8 Textile & Apparel Business We support customers with an all-in-one system covering everything from materials development to planning and production. We disseminate Japan quality textiles. In the field of textiles and apparel, we are comprehensively engaged in every aspect from planning and proposal to production and distribution, with synthetic and fibers, from raw cotton to textiles and sewn products of all forms. Each company of the Unitika Group is involved in fiber and textile sales, extending to partnerships with fabric manufacturers in Japan and overseas to provide products that meet customer needs. 7

9 4 Makes Quality Value Ladies & Men s Ladies Wear Sports & Innerwear Functional Material Material Technology Development Apparel manufacturer, retailer, sales agency Solutions Uniform Uniforms Material Lifestyle Planning Section Production Section Distribution Section Marketing planners Marketing plan Our marketing planners provide you plans and proposal suitable for the market. Production of clothing Production of textiles Store assortments Individual andother assortments Designers Our exclusive designers who have world-wide trend knowledge from clothing to textiles provide you proposals for design. Textile Evaluation Specialist (Direct instructions from our experienced staff) Also handle POS systems Pattern makers Our experienced and creative staff proposes our original techniques and new silhouettes. Domestic factories Overseas factories Delivery We provide integrated plans and proposals including a theme concept that reflect customers opinions. Providing quality products that ensure safety stores Chain stores GMS,SSM,CVS Specialty stores Comprehensive all-in-one system Spinning companies Woven and knitting factories Dyeing factories Sewing factories 8

10 Textile & Apparel Business Ladies & Men s 4 Makes Quality Value Ladies & Men s Uniforms Ladies Wear Sports & Innerwear Functional Material Material Technology Development Uniform Material Lifestyle We respond in detail to customer needs through our commitment to society. We deliver today in fashion. Taking advantage of our comprehensive textile-related capabilities, we support our customers starting from the stages of apparel product material procurement and development. We deploy consistent value-chain management from weaving, knitting, dyeing and other processing of textile products leveraging our trading company functions, to the gamut from merchandizing to design of apparel products, and original equipment manufacturing for specialty stores, department stores, and mail order outlets, all the way through to distribution. We provide all manner of solutions tailored to the needs of our customers. Unique Deployment through Higher Order Operations We are intensively deploying differentiated and high value-added products equipped with global competitive capacity. In addition to the sophisticated technical development capabilities and facilities inherited from the Unitika Group in Japan, we have also brought these assets to overseas production centers, where we are working to provide unique products that have the added benefit of Japan quality in cost operations. Responding Flexibly to an Array of Distribution Needs As a manufacturer-type trading company, we have the ability to provide solutions and the track record that comes with our close perspective on the final consumers. We also achieve original equipment manufacturing through an all-in-one system, starting from materials development, which accommodates customer needs. We will also provide solutions that include collaboration with brands in Japan and overseas, and direction of distribution structures. 9

11 Textile & Apparel Business Sports & Innerwear 4 Makes Quality Value Ladies & Men s Uniforms Ladies Wear Sports & Innerwear Functional Material Material Technology Development Uniform Material Lifestyle We add value with our broad range of expertise. We will innovate new possibilities in apparel. Sportswear is the type of apparel product that requires the most advanced functionality. Utilizing high-level technical capabilities, we develop highly functional materials of all kinds that are lauded even by top athletes. We also maintain a line of materials appropriate for innerwear that is comfortable to wear and is highly functional. We support our customers in every aspect, from product planning to design and original equipment manufacturing. High Quality and Highly Varied Supply Structure In the sportswear field, where demand for functionality continues to grow, what we value most is our close communication with apparel manufacturers. Our strength is in our broad-ranging responses in rapidly supplying high-quality thread, fabric and secondary products at each stage to accommodate the needs ascertained in the activities of our development teams. Functional Innerwear that Employs Technology In the field of functional innerwear as well a market that has been revitalized in recent years we supply materials that make use of our technology development capabilities. We are especially applauded for our ability to create hit products using composite materials or high value-added, differentiated materials produced with a special finishing process. Going forward, we remain committed to channeling resources into proposing secondary products that employ our all-in-one system as well as sportswear and innerwear products. 10

12 Textile & Apparel Business Uniform 4 Makes Quality Value Ladies & Men s Ladies Wear Sports & Innerwear Functional Material Material Technology Development Uniform Material Uniforms Lifestyle We provide a wide range of solutions from environmentally conscious materials to apparel. We create uniforms that contain new value. Uniforms worn at companies and schools in recent years not only have functionality such as being stretchable and absorbing sweat for quick drying, it has also become standard for them to be environmentally friendly in that they do not impact the earth s environment throughout their life cycles, from raw materials to disposal. In addition to development all manner of eco-materials and environmentally friendly systems, we also manufacture textile products, office wear, working wear, caddie wear, and other apparel products, as well as producing custom-made uniforms. Highly Functional Clothing to Accommodate an Aging Society As uniforms diversify, we are especially emphasizing development of nursing and nursing care clothing against the backdrop of the current aging society, as well as infection preventing wears and surgical fabrics, for which a high degree of functionality is required. Moving forward, we will deploy our business with an eye toward expanding sales of differentiated materials to global markets and manufacturing a variety of garments using our proprietary highly functional fabrics. Accommodating Everything from Special Functions to Environmentally Friendly Products We are also actively involved in uniforms for government agencies, which emphasize special functionality. Also, in recent years we have been engaged in development of everything from environmentally friendly products, such as the recycled polyester Uniecolo and the Ecorally recycling system that re-used consumed uniforms, to systems operation as important themes. 11

13 Textile & Apparel Business Lifestyle 4 Makes Quality Value Ladies & Men s Ladies Wear Sports & Innerwear Functional Material Material Technology Development Uniform Material Uniforms Lifestyle We are deploying bedding and towels using natural materials and processing techniques. We spread true comfort to people s lives. We develop high-quality and highly functional natural fiber materials, and provide optimal quality in bedding, towels,and other items in the home textiles field. We also leverage sophisticated processing techniques, such as antibacterial treatment to inhibit the growth of microbes and bacteria in the fibers. We bring together a vast array of high valued-added products that pursue cleanliness and comfort. Bedding Products with a Wide Range of Materials and Strong Design Capabilities We sell all manner of materials for bedding products, including fabric for feather comforters and Japanese-style mattresses and their covers, pillow covers, and pajamas. Our lineup of a broad range of high-quality materials includes high thread-count spun yarn and Indian cotton, as well as our stock of approximately 10,000 print designs. This ability to offer a wide array of solutions is earning us plaudits. Deploying Everything from Lifestyle Materials to Our Own Products In addition to supplying original yarns and raw materials for towels, handkerchiefs, curtains and other high-quality lifestyle materials, as a manufacturer we also use the composite material Palpa and deploy feather comforters and undergarments that utilize sophisticated processing and sewing technologies, as well our own products featuring cashmere. 12

14 Business We take full advantage of our functionality as a manufacturer and trading company. We will provide optimal materials through our planning capabilities and network. We supply all manner of fiber materials, synthetic materials, plastics, and functional materials needed in every kind of industry. We provide total solutions in raw materials, semi-finished products, and products, with focus on environmentally friendly materials. With our motto that all customer needs are business resources, we deliver original materials through our sophisticated technologies and network as a manufacturer and trading company. 13

15 4 Makes Qualoty Value (lifestyle applications) (exterior/interior applications) Materials suppliers Processors Industrial materials, spunbond fabrics Influence on products Feedback of ideas Various kinds of manufactures related to marine products, agriculture, civil engineering, architecture, automobile, etc. Unitika Trading provides it all from raw materials to semi-finished products and products on the keywords of next generation eco-friendly materials. Processing Technology Materials Material suppliers and trading companies Raw material manufacturers (Lifestyle applications) Consolidate Requests (Exterior/interior applications) Construction and public works materials User needs Market needs Commercialize Materialize at NB, PB, or OEM their needs as our products and provide them to the market and the users Trading companies General and interior companies contractors Sports-related companies Government and paving companies agencies Unitika Trading deploys products that require high functionality in fields ranging from lifestyle necessities to industrial materials for business, as well as in the fields of sports facilities, exteriors, and interiors. Processing manufacturers Interior companies Artificial lawn Interior products Artificial lawn, interior work Subcontractors General contractors Interior work in public facilities, hospitals, and condominium-based nursing care facilities Proposal of materials and processors manufacturers Films Resins Processors Converters Molders Slitting Coating Users Food manufacturers Information equipment manufacturers Automobile manufacturers, etc. Unitika Trading utilizes the networking capabilities of a trading company to provide detailed support from material selection to processing and delivery. Feedback of ideas and needs 14

16 Business 4 Makes Quality Value (lifestyle applications) (exterior/interior applications) We contribute to industry through a vast array of materials of all kinds. We provide total solutions, from fibers to resins. We provide highly functional materials developed by the Unitika Group to all manner of industry sectors. We support industry in wide-ranging forms, for nylon, polyester and other fiber and synthetic materials, as well as original fabrics to each kind of processed product and sewn product even for nonwoven fabrics capable of deployment in a variety of applications. Deploying a Wide Array of Fiber Materials in All Industries We sell fiber materials that are used in all manner of industries, from fisheries and agriculture to construction, automotive, all types of manufacturing, and recreation. In addition to polyester, nylon, and vinylon, we deploy proprietary functional fibers that include amorphous metal fibers and glass fibers, activated carbon fibers that exert a strong effect in air and water filtration systems, and the biomass material Terramac that has a low environmental impact. High Share of Nonwoven Fabrics and Proprietary Synthetics Spunbonded nonwoven fabrics and discontinuous-fiber nonwoven fabrics are focus products in the field of industrial materials, as demand is increasing for these materials in civil engineering, agriculture and household necessities. In addition to original fabrics, we also handle all manner of processing, such as slitting, rewinding, printing, bag making, evaporation, and coating. Our glass bead Sparklite, used in reflectors, is also gaining attention and expanding into new applications. 15

17 Business 4 Makes Quality Value (lifestyle applications) (exterior/interior applications) We propose functional products for lifestyle necessities, exteriors, and interiors. We leverage our potential through creativity. We take advantage of our extensive line of materials, including fibers and synthetics, and our network to deploy products that are active in lifestyle settings and sports settings that require special applications and functions. From lifestyle necessities such as kitchen supplies and cleaning products where functionality is emphasized, to materials for artificial lawn, interiors, and public works construction, we maintain a product lineup that makes use of our unique planning and development capabilities. A Broad Range of Lifestyle-related Necessities to Meet Customer Needs Though the wide expanse of materials and unique planning and development capabilities of the Unitika Group, we manufacture and sell all manner of lifestyle necessities and industrial materials tailored to user needs. We deal with products from familiar lifestyle items such as kitchen supplies and cleaning products, to products used in all types of plants, such as wiping cloths. Pursuing Safety from Exterior Products to Interior Products We deploy our artificial lawn Green Eye as a core product active in a wide array of fields, from sports application to recreational products and landscaping. Our lineup also includes our Green Eye Sand artificial lawn containing sand for tennis courts, and our long-pile artificial lawn Green Eye Hyper for grounds. We also offer design and execution of interior work, and sell interior products, namely carpets, blinds, and curtains. We thereby respond to a vast range of customer needs. 16

18 Business 4 Makes Quality Value (lifestyle applications) (exterior/interior applications) We are expanding the possibilities for films and environmental materials. We provide detailed support for everything from selection of materials to the final product. We maintain extensive technologies and knowledge as a materials manufacturer, based on our polymer technologies. Leveraging out network functions as a trading company underpinned by such expertise, we are deploying unique products in all manner of fields. We are also actively proposing environmentally friendly materials, particularly our Terramac biomass material. Selling Plastic Processing Methods and Processing Machinery We provide detailed service solutions ranging from supply of materials to processing and delivery. We select the ideal processing companies to meet our customer needs in terms of quality, lots, and deadlines. We also can arrange for bio-clean rooms (BCR) that eliminate particles and microbes, enabling high-quality processing. We also sell plastics processing machinery. We are able to fulfill orders with tight deadlines through coordination with warehouses and various logistics companies. Food Packaging, Industrial Films and Resins We sell all manner of films and resins used for food packaging, such as nylon, polyester, and polypropylene, as well as film products that undergo secondary processing, such as slitting and coating, used in the automotive and information equipment industrial fields. Upon request, we also provide assistance in selecting ONY, PET, OPP, CPP, AF (aluminum foil), and other films. By feeding back information from customers, we also play an active role in product development. 17

19 Overseas Business 4 Makes Quality Value We are dynamically deploying our business from the ASEAN countries to the United States and Europe. We are engaged in everything from import/export activities to on-site manufacturing and sales. We are involved in import/export activities, from the purchasing of original yarns to the planning and sale of denim fabric. We are also dynamically advancing production and sales with an eye firmly on overseas markets. By revitalizing production centers that use overseas infrastructure and through our overseas sales network, we will expand sales of business resources,such as differentiated threads and industrial materials, from China to the ASEAN countries, and then to the EU markets. Global Development and Sale of Denim Fabrics We maintain a tie-up with a major denim fabric manufacturer that has the top share in Japan, and are engaged in the related export activities. We currently have approximately 120 contracts with famous apparel manufacturers in the United States and Europe. In coordination with overseas sewing and processing plants, we propose and supply top-quality denim materials to the world s jeans markets. Overseas spinning (India, Pakistan, etc.) Export of denim fabric Domestic spinning Original yarn Sewing and hand-washing Original yarn Overseas sales (Shanghai, Beijing, Hong Kong) Overseas production (China, Indonesia) Overseas sales (EU markets) Original yarn Plans for joint tie-ups Fabric manufacturers and knitters Denim fabric manufacturers Strengthening our Motive Force as a Global Corporation We are powerfully advancing our global deployment by utilizing overseas infrastructure. In addition to import/export activities and overseas production, we are promoting the expansion of overseas sales and the establishment of production structures through coordination with the sales hubs the Unitika Group maintains in Shanghai, Beijing, and Hong Kong. We will move from overseas deployment of differentiated threads to promotion of sales within China, deployment of industrial materials in Southeast Asia, and then to advancement into markets in the United States and Europe. We are making strides daily in our drive to be a global corporation. 18

20 Head Office Tokyo Office Metlife Hommachi Square, Hommachi, Chuo-ku, Osaka, , Japan Kyodo Bldg., 1-5, Nihonbashi Muromachi 4-Chome, Chuo-ku, Tokyo, , Japan Tel Fax Tel Fax

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