November 6, 2015
Company name: Nitta Gelatin Inc.
Representative: Koichi Ogata, Representative Director and President(Stock code: 4977; First Section of Tokyo Stock Exchange)
Contact: Tsuneo Sasaki, Director and Senior Managing Executive Officer
General Manager of General Administration Division
Tel: +81-72-949-5381

Nitta Gelatin Announces Medium-term Management Plan
Nitta Gelatin Inc. today announced a medium-term management plan covering the three-year period
from the fiscal year ending March 2016 to the fiscal year ending March 2018.

1. Background of Medium-term Management Plan
Nitta Gelatin’s previous three-year medium-term management plan was formulated in May 2013
under the key concept of making the Company become the Dominant No. 1 in Asia. Despite theGroup’s push to make investments toward achieving the targets, the previous plan was suspended in
the second year. This was because the plan’s assumptions were undermined by significant changes
in the business environment including the yen’s persistent weakness and market conditions in North
America. Soon after, the Company’s management was revamped in April 2015. Nitta Gelatin willalso be ushering in its 100th founding anniversary in 2018. It was under these circumstances thatthe new medium-term management plan was formulated with the aim of setting Nitta Gelatin oncourse to making further advancements over the next 100 years.

2. Assumed Market Environment and Business Opportunities
Nitta Gelatin can now expect to create new markets and expand business opportunities in Japanbecause the yen’s depreciation has persisted amid the introduction of the functional labeling offoods and the relaxation of regulations on bovine spongiform encephalopathy (BSE) in the Japanesemarket. Meanwhile, sales of Nitta Gelatin’s products are forecast to expand in Asia as the region
continues to drive growth in the global economy. This is because the region’s diet has westernized
and the consumption of processed foods, health foods and pharmaceuticals has increased. In
addition, the basic ratification of the Trans-Pacific Partnership (TPP) in October 2015 is expected tohave a significant impact on the economies of the region by promoting the free trade of goods andservices. This is viewed as a major growth opportunity for the Nitta Gelatin Group provided that it
can make the most of its strengths in the region.

-1-3. Slogan and Basic Strategy
Company slogan: Progress with a New Perspective
In the first two years of the previous medium-term management plan, Nitta Gelatin expanded its
global production platform by proactively investing in a peptide plant in the U.S. and a new
Adhesive Innovation Center (AIC). The new medium-term management plan aims to raise theGroup’s business to the next stage of recouping these investments by generating profits from theoperating platforms that were developed.
Basic strategy: Pursue the Highest Quality
To be appreciated by its stakeholders, Nitta Gelatin will raise corporate value by enhancing quality
in all aspects of its business operations. This will include product, sales, production, quality
assurance, and research and development.

4. Medium-term Management Plan
(1) Consolidated Operating Results
Year ended
Mar. 2015(Actual)Year ending
Mar. 2016(Plan)

Year ending
Mar. 2018(Target)Net sales

¥31.9

¥38.1

¥41.0

Operating income

¥0.3

¥1.4

¥2.0

Operating margin

1.2%

3.7%

4.9%

Overseas sales ratio

42.2%

48.0%

50.0%

(Billions of yen)

(Note) Planned figures from the fiscal year ending March 31, 2016 assume the following
exchange rates: ¥118.0＝US$1.

(2) Strategic Issues
1) Develop High-Value-Added Products
Owing to the population declining and markets maturing, it is now difficult in Japan to optimize
profits by expansion of product volume alone. This is because this would only trigger pricecompetition among competitors. On the other hand, the Company has grown since it wasestablished by developing products suited to the changing times and market needs. The potentialof gelatin and collagen as core products remains infinite, and Nitta Gelatin believes it cancontinue to differentiate them from its competitors. Going forward, the Company will apply thetechnologies it nurtured to develop products with high added value. These include collagen
peptides high in properties for regulating bodily functions, gelatin and collagen for use incultivating iPS cells in regenerative medicine, and products supplementing the diet of seniorcitizens who have active lifestyles, an area where market growth is expected. In the adhesives
business, this will include high-performance polymers useful to customers in the electronics-2-industry who want to automate their manufacturing process.
2) Optimize Production, Optimal Sales
The Nitta Gelatin Group has manufacturing bases in Japan, North America, India, China, andVietnam, and has its eye on North America and Asia for globalizing business. To this end theGroup will begin promoting a sales strategy of local production for local consumption. This will
be done to take advantage of the relaxation of BSE regulations, as well as to minimize the impactof tariffs, transportation costs and foreign exchange fluctuations involved in exporting andimporting products manufactured at its bases. In addition, the Group will adapt its manufacturing
for sales expansion in growth markets.
3) Strengthen Global Business Foundations
Since entering the country’s market in 1975 to procure raw materials for bovine bone gelatin,India has become an important procurement, manufacturing and marketing base of bovine bonegelatin for the Nitta Gelatin Group. In April 2015, Nitta Gelatin’s three bases in India wereconsolidated as subsidiaries. The subsidiaries will be integrated further with Nitta Gelatin as theGroup moves forward. Apart from that, Nitta Gelatin will strengthen its global businessfoundation by promoting the exchange of human resources and diversifying its management
team internationally, while enhancing the Group’s profitability with the steadfast and speedy
implementation of overseas business strategies.

(3) Capital Investment Plan
The Company plans to make capital investments totaling ¥6.5 billion during the period covered by
the medium-term management plan. The main planned uses are as follows:･ Deploy new facilities in the casing business･ Deploy new facilities to boost gelatin production at the Osaka Plant･ Deploy new facilities to increase productivity at overseas gelatin plants

Forward-looking Statements

This press release includes forward-looking statements about the Company’s and Group companies’ assumptions,forecasts, targets, plans and so forth. These forward-looking statements are based on information currently available to
the Company and are the basis of forecasts, etc. at the time this press release was prepared. Furthermore, since certain
assumptions are used for these statements, they may prove to be inaccurate in the future and may not be attainable.
There are many uncertainties and risks that can cause this situation. Please refer to the latest materials published by theCompany, including earnings reports, securities reports and annual reports, for related information. Moreover,Statements concerning future information in this press release are as of the time this press release was prepared, asmentioned above. The Company does not have any obligation or policy whatsoever to regularly update suchinformation.

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