November 5, 2013

Consolidated Financial Results
for the Six Months Ended September 30, 2013
(Japanese Accounting Standards)
Name of the Listed Company: Nitta Gelatin Inc.
Listing:First Section of Tokyo Stock Exchange
Stock code:
4977
URL:
http://www.nitta-gelatin.co.jp
Representative:
Norimichi Soga, Representative Director and President
Contact Person:
Tsuneo Sasaki, Director and Senior Managing Executive Officer;
General Manager of the General Administration Division
Tel: +81-72-949-5381
Scheduled date to file Quarterly Securities Report: November 11, 2013
Scheduled date to commence dividend payments: December 6, 2013
Supplementary explanatory materials prepared:
Yes
Explanatory meeting:Yes (For analysts and institutional investors)(Millions of yen with fractional amounts discarded, unless otherwise noted.)

1. Consolidated financial results for the six months ended September 30, 2013
(from April 1, 2013 to September 30, 2013)(1) Consolidated operating results(Percentages indicate year-on-year changes.)
Net sales
Six months ended
September 30, 2013
September 30, 2012

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

16,035
14,029

14.3
－

545
891

(38.9)－

630
937(32.8)－

460
701(34.3)－

Note: Comprehensive income
For the six months ended September 30, 2013: ¥695 million (61.5%)
For the six months ended September 30, 2012: ¥430 million (-%)

Net income
per share
Six months ended
September 30, 2013
September 30, 2012

Yen

Diluted net income
per share
Yen

27.34
－
44.50
－
Note: Consolidated financial results for the six months ended September 30, 2012 were adjusted retroactively, applying
accounting policies that were changed in line with revisions of accounting standards. Accordingly, the Company has notdisclosed year-on-year comparisons between results for the six months ended September 30, 2012 and 2011.

(2) Consolidated financial position
Total assets
As of
September 30, 2013
March 31, 2013

Net assets

Equity ratio

Millions of yen

Millions of yen%

28,74625,19013,423
9,724

46.2
38.0

Reference: Equity
As of September 30, 2013:¥13,275 million
As of March 31, 2013:¥9,577 million
Note: The consolidated financial position as of March 31, 2013 was adjusted retroactively, applying accounting policies thatwere changed in line with revisions of accounting standards.

2. Cash dividends
Cash dividends per shareFirst quarter
Fiscal year ended March 31,
2013
Fiscal year ending March
31, 2014
Fiscal year ending March
31, 2014 (Forecasts)

Second quarter

Third quarter

Fiscal year-end

Annual

Yen

Yen

Yen

Yen

Yen

–

6.00

–

8.00

14.00

–

6.00
–

6.00

12.00

Note: Changes to most recent dividend forecasts: None

3. Consolidated financial forecasts for the fiscal year ending March 31, 2014
(from April 1, 2013 to March 31, 2014)
Net sales

Fiscal year ending
March 31, 2014

(Percentages indicate year-on-year changes.)
Ordinary
Net income
Net income
incomeper share

OperatingincomeMillionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%Yen

32,700

13.7

1,700

6.5

1,890

(4.5)

1,380

(9.5)

78.60

Note: Changes to most recent consolidated financial forecasts: None
Year-on-year changes to the consolidated financial forecasts for the fiscal year ended March 31, 2013 were adjusted
retroactively, applying accounting policies that were changed in line with revisions of accounting standards.
In addition, Nitta Gelatin Inc. issued common stock by way of public subscription for payment on July 29, 2013, andthird-party allocation for payment on August 28, 2013. Consequently, net income per share in this report was restated toinclude the increase in common stock of 2,400,000 shares from the public subscription, and 203,900 shares from thethird-party allocation.

Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in achange in the scope of consolidation): None
New: None
Excluded: None
(2) Adoption of special accounting methods for the preparation of quarterly consolidated financial
statements: No

(3) Changes in accounting policies, changes in accounting estimates, and restatement of revisions
a. Changes in accounting policies due to revisions to accounting standards and other guidelines: Yes
b. Changes in accounting policies due to reasons other than a. above: No
c. Changes in accounting estimates: No
d. Restatement of revisions: No
Note: For details, please refer to “(3) Changes in Accounting Policies and Estimates, and Restatementof Revisions” in “2. Matters Concerning Summary Information (Notes)” on page 5 of the
Attachment Contents to this report.
(4) Number of common shares issued
a. Total number of issued shares at the end of the period (including treasury stock)
As of September 30, 2013
18,373,974 shares
As of March 31, 2013
15,770,074 sharesb. Number of shares of treasury stock at the end of the period
As of September 30, 2013162 shares
As of March 31, 2013162 sharesc. Average number of shares
For the six months ended September 30, 2013
For the six months ended September 30, 2012

16,856,740 shares
15,769,912 shares* Disclosure of status of quarterly review procedure
This report falls outside the scope of quarterly review procedures as laid out in the Financial Instruments
and Exchange Act. As of the time of the release of this report, the review of the financial statements, etc.,
outlined in the Act had not yet been concluded.
* Proper use of earnings forecasts, and other special matters
The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable.
These statements do not guarantee that the Company will achieve its earnings forecasts. In addition,
actual business and other results may differ substantially due to various factors. For details on theconditions assumed and the cautionary notes and items in the financial forecasts, please refer to “(3)Description of Consolidated Business Forecasts and Other Forward-looking Information” in “1.
Qualitative Information Concerning Quarterly Financial Statements” on page 5 of the Attachment
Contents to this report.

Attachment Contents
1. Qualitative Information Concerning Quarterly Financial Statements㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯 2(1) Description of Business Results㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯 2(2) Description of Financial Position㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯 3(3) Description of Consolidated Business Forecasts and Other Forward-looking Information㨯㨯㨯㨯㨯㨯㨯㨯 5

2. Matters Concerning Summary Information (Notes)㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯 5(1) Significant Changes in Subsidiaries During the Quarterly Period Under Review㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯 5(2) Application of Special Accounting Methods in the Preparation of Quarterly Consolidated Financial
Statements㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯 5(3) Changes in Accounting Policies and Estimates, and Restatement of Revisions㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯 5

3. Quarterly Consolidated Financial Statements㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯 6(1) Consolidated Balance Sheets 㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯 6(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income 㨯㨯㨯㨯 8
Consolidated Statements of Income
Second quarter consolidated cumulative accounting period㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯 8
Consolidated Statements of Comprehensive Income
Second quarter consolidated cumulative accounting period㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯 9(3) Consolidated Statements of Cash Flows 㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯 10(4) Notes to Quarterly Consolidated Financial Statements㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯 12(Note Concerning Going Concern Assumption) 㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯 12(Note Concerning Significant Changes in Shareholders’ Equity)㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯 12(Segment Information)㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯 12(Subsequent Events)㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯㨯 131

1. Qualitative Information Concerning Quarterly Financial Statements
As stated in "(3) Changes in Accounting Policies and Estimates, and Restatement ofRevisions" in "2. Matters Concerning Summary Information (Notes)," certain overseas
affiliate companies started applying the revised IAS 19 from the three months ended
June 30, 2013. This change in accounting policy was also applied retroactively to restate
financial results from the previous fiscal year in year-on-year comparisons.
(1) Description of Business Results
In the first six months of the year ending March 31, 2014, the global economy
continued to recover gradually despite continuing uncertainty due to issues such asfederal budget difficulties in the United States and a slowdown among emerging
economies. Meanwhile, the Japanese economy also continued to recover gradually withthe yen depreciating and stock prices rising, as a result of government policies and the
Bank of Japan’s monetary easing. Nevertheless, the situation remains unclear, as someare forecasting a conceivable downturn in the global economy to have an impact.
Given the situation, Nitta Gelatin faced challenging business conditions including
rising prices for gelatin and other raw materials for the Group, while energy prices andthe cost of import procurements increased in Japan due to the yen’s depreciation.
Meanwhile, the Company issued 2,603,900 shares of common stock by way of public
subscription in July, and third-party allocation in August 2013. The resulting ¥3,135
million in total proceeds were used to secure ample funds for capital expenditures, andto improve the Group’s financial position.
Against this backdrop, the Group worked to provide products and services a stepahead of customers' expectations, develop new products, cultivate new markets andreduce costs under the slogan of "Amaze the World!" and a basic strategy to "Win out!!
in growing Asian market".
As a result, in the first half of the fiscal year ending March 31, 2014, net sales
increased 14.3% year on year to ¥16,035 million. By contrast, operating income fell
38.9% to ¥545 million, mainly due to an increase in the cost of sales, ordinary income
was down 32.8% to ¥630 million and net income decreased 34.3% to ¥460 million.
Segment business performance was as follows:(a) Collagen Material BusinessIn the gelatin field, sales of edible gelatin and gelatin for capsules increased in Japan.
2

Profit margins declined, however, as a result of rising raw material prices, andincreasing procurement costs due to the yen’s depreciation. In overseas markets, sales
increased owing to price revisions backed by buoyant demand.
Collagen peptide sales increased year on year mainly reflecting increased sales inJapan and Asia overall.
Collagen casing saw sluggish sales volume growth in North America, althoughmonetary sales increased as a result of the yen’s depreciation.
As a result, net sales in the segment were up 21.5% year on year to ¥10,763 million
and segment income (operating income) was down 27.6% to ¥666 million.
(b) Formula Solution Business
Sales of food materials on the whole were sluggish. This was mainly because of
lackluster sales for delicatessen items, although sales for ingredients in confectionary
and desserts, and for ham and sausages were strong.
In adhesives, overall sales were flat due to sluggish sales of hot-melt adhesives.
As a result, net sales in the segment were up 1.9% year on year to ¥5,271 million.
Segment income (operating income) was down 15.0% to ¥551 million.
(2) Description of Financial Position(a) Assets, liabilities and net assets(Assets)
Total assets amounted to ¥28,746 million as of September 30, 2013, ¥3,555 million
higher than as of March 31, 2013. This was mainly attributable to a ¥396 million
increase in cash and deposits, a ¥1,479 million increase in notes and accounts
receivable-trade, and a ¥358 million increase in inventories including merchandise andfinished goods. There was also an ¥891 million increase in property, plant andequipment in line with a renewal of collagen casing production facilities and theconstruction of a collagen peptide plant.
(Liabilities)
Total liabilities stood at ¥15,322 million as of September 30, 2013, ¥142 million lower
than as of March 31, 2013. This was mainly attributable to decreases of ¥927 million in
long-term loans payable (current portion included), and ¥200 million in the current
portion of bonds. Those decreases were partly offset by increases of ¥272 million in3

notes and accounts payable-trade, and ¥534 million in short-term loans payable.
(Net assets)
Net assets were ¥13,423 million as of September 30, 2013, ¥3,698 million higher thanas of March 31, 2013.
This was mainly attributable to a ¥334 million increase in retained earnings, andincreases of ¥1,567 million each in capital stock and capital surplus resulting from theissuance of common stock by way of public subscription and third-party allocation.
As a result, the equity ratio stood at 46.2% as of September 30, 2013, compared to
38.0% as of March 31, 2013.
(b) Cash flows
Cash and cash equivalents (“cash”) as of September 30, 2013 were ¥2,655 million, up¥396 million from as of March 31, 2013.
Cash flows for each activity and reasons are as follows.
(Net cash used by operating activities)
Operating activities used net cash of ¥910 million. The main contributing factors wereincreases of ¥1,389 million in accounts receivable-trade and ¥229 million in inventories.
This was partly offset by ¥704 million in income before income taxes.
(Net cash used in investing activities)
Investing activities used net cash of ¥1,381 million. The main use of cash was ¥1,248
million for the purchase of property, plant and equipment.
(Net cash provided by financing activities)
Financing activities provided net cash of ¥2,645 million. The main contributors to cash
were ¥3,135 million in proceeds from issuance of common stock and ¥497 million inproceeds from short-term loans payable. The main use of cash was ¥1,197 million in
repayment of long-term loans payable.

4(3) Description of Consolidated Business Forecasts and Other Forward-looking
Information
The Group has not revised its consolidated business forecasts for the fiscal year ending
March 31, 2014, which were announced in the "Consolidated Financial Results for the
Fiscal Year Ended March 31, 2013 (Japanese Accounting Standards)" on May 10, 2013.
Actual business and other results may differ substantially from projections due tovarious factors.
2. Matters Concerning Summary Information (Notes)(1) Significant Changes in Subsidiaries During the Quarterly Period Under Review
None(2) Application of Special Accounting Methods in the Preparation of Quarterly
Consolidated Financial Statements
None(3) Changes in Accounting Policies and Estimates, and Restatement of Revisions
Certain overseas affiliate companies started applying IAS 19 Employee Benefits (June16, 2011) from the three months ended June 30, 2013. This change in accounting policy
was also applied retroactively to restate results for the six months ended September 30,
2012 and as of March 31, 2013 in the Quarterly Consolidated Financial Statements.
As a result, net income for the six months ended September 30, 2012 decreased ¥7
million after restatement. Moreover, net assets as of April 1, 2012 was restated ¥153
million lower to mainly reflect the accumulative impact of this accounting policychange.

5

3. Quarterly Consolidated Financial Statements(1) Consolidated Balance Sheets(Thousands of yen)

Fiscal 2013
(As of March 31, 2013)

2Q Fiscal 2014
(As of September 30, 2013)

2,278,659
5,839,913
4,404,789
918,045
1,508,837
385,762(16,176)
15,319,831

2,675,565
7,319,485
4,638,499
997,966
1,553,857
656,731(16,375)
17,825,730

2,792,208
1,343,676
2,151,627
6,287,512

2,821,597
1,328,885
3,028,413
7,178,897

48,696
48,69645,36945,3692,768,381
767,704(1,809)3,534,277
9,870,486
25,190,318

2,998,734
699,237(1,806)
3,696,165
10,920,433
28,746,164

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
Buildings and structures, net
Machinery, equipment and vehicles, net
Other, net
Total property, plant and equipment
Intangible assets
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

6

(Thousands of yen)

Fiscal 2013
(As of March 31, 2013)

2Q Fiscal 2014
(As of September 30, 2013)

3,736,664
1,145,432
2,068,482
200,000
81,273
220,847
2,184,378
9,637,079

4,009,165
1,680,137
1,750,514
㧙222,940
160,378
2,051,593
9,874,729

3,142,014
2,276,795
35,422
374,3445,828,575
15,465,655

2,532,302
2,263,916
36,247
615,6365,448,102
15,322,832

1,577,121
1,398,633
8,194,375(68)
11,170,062

3,144,929
2,966,442
8,529,131(68)
14,640,434

499,868

628,979

27,858(667,634)(16,165)(515,099)(1,452,870)(1,462,351)(1,592,778)(1,364,636)

147,379
9,724,663
25,190,318

147,534
13,423,331
28,746,164

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
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Provision for directors' retirement benefits
Other
Total noncurrent liabilities
Total liabilities
Net Assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income(loss)
Valuation difference on otheravailable-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustments
Pension liability adjustment of foreignsubsidiaries
Total accumulated other comprehensive
income (loss)
Minority interests
Total net assets
Total liabilities and net assets

7

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Second quarter consolidated cumulative accounting period)(Thousands of yen)

2Q Fiscal 2013
(From April 1, 2012
to September 30, 2012)
14,029,866
10,706,327

2Q Fiscal 2014
(From April 1, 2013
to September 30, 2013)16,035,202
12,835,048

Gross profit on sales

3,323,539

3,200,154

Selling, general and administrative expenses

2,431,993

2,655,139

891,545545,014768
10,573

Net sales
Cost of sales

Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Equity in earnings of affiliatesOther㧙
124,290
46,288

4,236
10,826
66,292
73,13541,063

Total non-operating income

181,920

195,555

75,751

74,114
23,385Non-operating expenses
Interest expenses
Public offering expenses
Foreign exchange losses
Other㧙
44,831
14,895

Total non-operating expenses

㧙12,660135,478

110,160

Ordinary income

937,987

630,409

Extraordinary income
Gain on sales of noncurrent assets
Guarantees received

10,897

㧙
87,288

㧙
10,897

Total extraordinary income
Extraordinary losses
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
Total extraordinary losses
Income before income taxes and minority
interests
Income taxes
Income before minority interests
Minority interests in income (loss)
Net income

887,2889,028
9,871
18,90012,998929,984

704,699

225,366
704,617
2,928
701,689

248,809455,890(5,025)
460,915

㧙
12,998

Consolidated Statements of Comprehensive Income(Second quarter consolidated cumulative accounting period)(Thousands of yen)

Income before minority interests

2Q Fiscal 2013
(From April 1, 2012
to September 30, 2012)
704,617

2Q Fiscal 2014
(From April 1, 2013
to September 30, 2013)
455,890(92,153)

129,260(12,646)(20,682)(192,922)

219,473

72,924(9,480)(49,466)(79,369)(274,264)
430,353239,201
695,091

427,147
3,205

689,057
6,034

Other comprehensive income (loss)
Valuation difference on otheravailable-for-sale securities
Deferred losses on hedges
Foreign currency translation adjustments
Pension liability adjustment of foreignsubsidiaries
Share of other comprehensive loss of
associates accounted for using equity method
Total other comprehensive income (loss)
Total comprehensive income
Comprehensive income attributable to:
Owners of the parent
Minority interests9(3) Consolidated Statements of Cash Flows(Thousands of yen)

2Q Fiscal 2013
(From April 1, 2012
to September 30, 2012)

2Q Fiscal 2014
(From April 1, 2013
to September 30, 2013)

929,984

704,699385,728

428,581

4,900

(54)

(60,101)(62,788)

Decrease in provision for retirement benefits
Increase in provision for directors' retirement
benefits
Interest and dividends income(75,674)(24,739)825

825(11,341)(15,063)Interest expenses

75,751

74,114Foreign exchange (gains) losses

22,010(21,886)

Equity in earnings of affiliates(124,290)(73,135)

Gain on sales of noncurrent assets(10,897)

㧙

Loss on retirement of noncurrent assets

9,028

12,998Loss on valuation of investment securities
Increase in notes and accounts
receivable-trade
Increase in inventories

9,871

㧙

(8,417)(1,389,305)(412,134)(229,535)

Increase in notes and accounts payable-trade286,381

177,038

Decrease in accrued consumption taxes(48,611)(66,723)

Other, net(268,013)(314,673)

Subtotal

704,999(799,649)

Interest and dividends income received

144,347

84,043

Interest expenses paid

(75,041)(74,771)

Income taxes paid

(401,770)(120,406)

Net cash provided by operating activities

372,534(910,784)

Cash flows from operating activities
Income before income taxes and minority
interests
Depreciation and amortization(Decrease) increase in allowance for doubtful
accounts
Decrease in provision for bonuses

10(Thousands of yen)

2Q Fiscal 2012
(From April 1, 2011
to September 30, 2011)

2Q Fiscal 2013
(From April 1, 2012
to September 30, 2012)

Payments into time deposits(20,000)(20,000)

Proceeds from withdrawal of time deposits

20,00020,000Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of stocks of affiliates
Purchase of insurance funds
Proceeds from cancellation of insurance funds
Payments of loans receivableCollection of loans receivable
Other, net(436,582)(1,248,221)

13,315

㧙(29,309)(35,341)
㧙㧙
(4,566)
29,610(200)
2,396(7,203)(2,388)(3,593)
5,362(142,136)(4,566)
15,599(120)
2,157(3,881)

Net cash used in investing activities(467,881)(1,381,789)(431)

497,539

1,519,115(1,002,303)(330,000)㧙
63,570(63,374)(126,159)(8,173)52,243251,849(1,197,368)(200,000)
3,135,616
392,335(102,539)(126,159)(5,880)2,645,393(21,319)44,085(64,422)396,905

2,078,305

2,258,659

2,013,882

2,655,565

Cash flows from investing activities

Cash flows from financing activities
Net increase (decrease) in short-term loans
payableProceeds from long-term loans payable
Repayment of long-term loans payable
Redemption of bonds
Proceeds from issuance of common stock
Proceeds from sale-and-leaseback transactions
Repayments of lease obligations
Cash dividends paid
Cash dividends paid to minority shareholders
Net cash provided by financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period11(4) Notes to Quarterly Consolidated Financial Statements(Note Concerning Going Concern Assumption)
None(Note Concerning Significant Changes in Shareholders’ Equity)
Nitta Gelatin, Inc. issued common stock by way of public subscription for payment
on July 29, 2013, and third-party allocation for payment on August 28, 2013. This
increased capital stock and capital surplus by ¥1,567 million each during the six
months ended September 30, 2013. As a result, the Company’s capital stock andcapital surplus stood at ¥3,144 million and ¥2,966 million, respectively, as of
September 30, 2013.
(Segment Information)
I. First half of the fiscal year ended March 31, 2013 (From April 1, 2012 to
September 30, 2012)
1. Information on net sales, income and loss by reporting segment
Reporting segment

Net sales
Sales to third parties
Inter-segment sales
and transfers
Total
Segment income(Thousands of yen)Amounts intheAdjustments*1 consolidated
financialstatements*2

Collagenmaterial
business

Formulasolutionbusiness

Total

8,855,882

5,173,984

14,029,866

㧙

14,029,866

610,207㧙

610,207(610,207)

㧙

9,466,089
919,966

5,173,984
648,559

14,640,073
1,568,526(610,207)(676,980)

14,029,866
891,545(Notes) 1. Adjustment for segment income of -¥676,980 thousand comprises

2.

elimination of intersegment transactions of ¥1,408 thousand andunallocated expenses of ¥678,389 thousand.
Segment income is adjusted against the operating income recorded in the
consolidated income statement.

2. Information on impairment loss on noncurrent assets and goodwill byreporting segments
No items to report12II. First half of the fiscal year ending March 31, 2014 (From April 1, 2013 to
September 30, 2013)
1. Information on net sales, income and loss by reporting segment
Reporting segment

Net sales
Sales to third parties
Inter-segment sales
and transfers
Total
Segment income(Thousands of yen)Amounts intheAdjustments*1 consolidated
financialstatements*2

Collagenmaterial
business

Formulasolutionbusiness

Total

10,763,955

5,271,246

16,035,202

㧙

16,035,202

679,876㧙

679,876(679,876)㧙

11,443,831
666,336

5,271,246
551,352

16,715,078
1,217,688(679,876)(672,674)

16,035,202
545,014(Notes) 1. Adjustment for segment income of -¥672,674 thousand comprises

2.

elimination of intersegment transactions of ¥1,526 thousand andunallocated expenses of ¥674,200 thousand.
Segment income is adjusted against the operating income recorded in the
consolidated income statement.

2. Information on impairment loss on noncurrent assets and goodwill byreporting segments
No items to report
3. Matters Concerning Changes in Reporting Segments
Certain overseas affiliate companies started applying IAS 19 Employee
Benefits (June 16, 2011) from the three months ended June 30, 2013. Thischange in accounting policy was also applied retroactively to restate results
for the six months ended September 30, 2012 and as of March 31, 2013 in the
Quarterly Consolidated Financial Statements.
As a result, segment income for Collagen Material Business for the six
months ended September 30, 2012 decreased by ¥9 million after restatement.
(Subsequent Events)
No items to report13