August 10, 2023

Consolidated Financial Results
for the Three Months Ended June 30, 2023
(Japanese Accounting Standards)

Name of the Listed Company: Nitta Gelatin Inc.
Listing:
Prime Market of Tokyo Stock Exchange
Stock code:
4977
URL:
http://www.nitta-gelatin.co.jp
Representative:
Koichi Ogata, Representative Director and President
Contact Person:
Kazuya Hayashi, Director and Executive Officer,
General Manager of General Management Division
Tel: +81-72-949-5381
Scheduled date to file Quarterly Securities Report: August 10, 2023
Scheduled date to commence dividend payments: —Supplementary explanatory materials prepared:No
Explanatory meeting:
No(Millions of yen with fractional amounts discarded, unless otherwise noted.)

1. Consolidated financial results for three months ended June 30, 2023
(April 1, 2023 to June 30, 2023)(1) Consolidated operating results(Percentages indicate year-on-year changes.)
Net sales
Three months ended
June 30, 2023
June 30, 2022

Millions of yen

9,403
9,248

%

1.7
22.0

Operating income

Ordinary income

Net income
attributable toowners of the parent

Millions of yen

Millions of yen

Millions of yen

489
680

%

(28.1)
153.5

Note: Comprehensive income
Three months ended June 30, 2023: ¥1,511 million (7.5%)
Three months ended June 30, 2022: ¥1,406 million (240.1%)

Earnings per share
Three months ended
June 30, 2023
June 30, 2022

Yen

741
866

%

(14.4)
191.1

Diluted earnings per
share
Yen

13.71
—
30.14
—
Note: Diluted earnings per share is not disclosed due to the absence of latent shares with dilution effect.

248
545

%

(54.5)
155.1

(2) Consolidated financial position
Total assets
As ofJune 30, 2023
March 31, 2023

Net assets

Millions of yen

Millions of yen

42,334
41,614

Reference: Equity
As of June 30, 2023:
As of March 31, 2023

Equity ratio

23,604
22,256

%

47.2
45.9

¥19,966 million¥19,097 million

2. Cash dividends
Cash dividends per shareFirst quarter

Second quarter

Yen

Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
Fiscal year ending
March 31, 2024 (Forecasts)

Third quarter

Yen—

Fiscal year-end

Yen

Annual

Yen

Yen

7.00

—

9.00

16.00

8.00

—

8.00

16.00

—

Note: Changes to most recent dividend forecasts: None

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2024
(April 1, 2023 to March 31, 2024)(Percentages indicate year-on-year changes.)

Net sales

Six months ending
September 30, 2023
Fiscal year ending
March 31, 2024

Operating income Ordinary income

Net income
attributable toowners of theparentEarnings per
share

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

20,0004.3

1,000(26.5)

1,000(38.5)

600(34.2)

33.09

40,000

2.1

2,100

(7.1)

2,100

(6.6)

1,200

(23.0)

66.18

Note: Changes to most recent dividend forecasts: None

Note:(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: None
(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:
Noneb. Changes in accounting policies due to reasons other than a. above: Nonec. Changes in accounting estimates: None
d. Restatement of revisions: None(4) Number of common shares issued
a. Total number of issued shares at the end of the period (including treasury stock)
As of June 30, 2023:
18,373,974 shares
As of March 31, 2023
18,373,974 sharesb. Number of shares of treasury stock at the end of the period
As of June 30, 2023:
240,939 shares
As of March 31, 2023
240,939 sharesc. Average number of shares
For the three months ended June 30, 2023:
For the three months ended June 30, 2022:

18,133,035 shares
18,105,235 shares* This financial report falls outside the scope of quarterly review procedures by Certified Public
Accountants or the independent auditor.
* Proper use of earnings forecasts, and other special matters(Note concerning forward-looking statements)
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 the conditions
assumed and the cautionary notes and items in the financial forecasts, please refer to “(3) Description ofConsolidated Business Forecasts and Other Forward-looking Information” in “1. Qualitative Information
Concerning Quarterly Financial Statements” on page 4 of the Attachment to this report.

.

Contents
1. Qualitative Information Concerning Quarterly Financial Statements·········································2(1)Description of Business Results ··················································································2(2)Description of Financial Position ················································································3(3)Description of Consolidated Business Forecasts and Other Forward-looking Information ···············4

2. Quarterly Consolidated Financial Statements and Key Notes ···················································5(1)Consolidated Balance Sheets······················································································5(2)Consolidated Statements of Income and Consolidated Statements of Comprehensive Income··········7Consolidated Statements of Income(First quarter consolidated accounting period)······························································7Consolidated Statements of Comprehensive Income(First quarter consolidated accounting period)······························································8(3)Notes to Quarterly Consolidated Financial Statements ························································9(Note Concerning Going Concern Assumption) ·······························································9(Note Concerning Significant Changes in Shareholders’ Equity) ·········································· 9(Segment Information) ·····························································································9(Subsequent Events)································································································9- 1 -1. Qualitative Information Concerning Quarterly Financial Statements(1) Description of Business Results

During the three months ended June 30, 2023, Japan’s economy showed signs of a gradual recovery,as the status of COVID-19 under the Infectious Disease Prevention Act was downgraded tocategory 5, and mobility increased in Japan and abroad. On the other hand, the global economy isexpected to remain sluggish due mainly to the protracted situation in Ukraine and rising consumer
prices in conjunction with soaring energy and raw material prices. As such, the environment
surrounding the Group remains challenging.
Within its business strategy, the Group has set forth a long-term vision of “Helping to improve
people’s quality of life with collagen” and declared as a specific measure a “Shift away fromgeneral-purpose gelatin products to high-value-added collagen peptides, concentrating resources
on markets with high growth potential to improve profitability.”
Under this business strategy, the Group worked to expand sales in the Food Solutions, HealthSupport, and Specialties domains, and continued to take steps to revise product prices asappropriate in response to rising raw material prices. The Group also worked to improve cash flowby maintaining and stabilizing production at overseas plants and other facilities and by optimizing
inventories.
In addition, following the revision of the rules of the Tokyo Stock Exchange, the Group had theopportunity to re-select the Standard Market for listing, and applied to move to the Standard Market
in June 2023.
As a result of the above, net sales increased 1.7% year on year to ¥9,403 million. Operating
income decreased 28.1% year on year to ¥489 million due to rising raw material prices, ordinary
income decreased 14.4% to ¥741 million, and as a result, net income attributable to owners of theparent decreased 54.5% to ¥248 million.
The Nitta Gelatin Group's collagen business is the Company’s only reporting segment. An
overview of the performance of each sales category is as follows:
Food Solutions
In the food solutions category, demand remained firm in Japan and North America, and productprices were revised as appropriate, leading to an increase in net sales overall.
In Japan, demand for gummy candies remained positive, and product prices were revised as
appropriate, leading to increased net sales. Furthermore, demand in the food service industry
recovered, leading to increased sales of small-portion products for professional-use. Additionally,
net sales for convenience store delicatessen items and chilled desserts increased.
Overseas, sales were strong for use in gummy candies in North America.
As a result, overall net sales in the food solutions category increased 14.0% year on year to¥3,953 million.

- 2 -Health Support
In the health support category, overall net sales rose amid firm demand for gelatin for capsules andcollagen peptide and appropriate product price revisions.
In Japan, net sales of collagen peptide for beauty applications increased amid expectations of arecovery in inbound demand. Also, in the direct sales business, which sells collagen health foods
to general consumers using direct marketing, net sales increased, with aggressive advertising via
mass media also contributing.
Overseas, the North American and Asian markets were weak due to inflation, so sales ofcollagen peptide for beauty applications declined.
However, net sales of gelatin for capsules used in supplements and pharmaceuticals remained
firm in India.
As a result, overall net sales in the health support category decreased 4.1% year on year to¥4,333 million.
Specialties
In the specialties category, net sales decreased by 11.7% year on year to ¥1,116 million amid
decreased sales of calcium phosphate for feed and fertilizer applications despite an increase in net
sales of gelatin for photography applications.

(2) Description of Financial Position(Assets)
Total assets amounted to ¥42,334 million on June 30, 2023, ¥719 million higher than on March 31,
2023. This was mainly attributable to increases in inventories of ¥1,130 million and property, plantand equipment of ¥257 million despite a decrease in cash and deposits of ¥671 million.
(Liabilities)
Total liabilities stood at ¥18,729 million on June 30, 2023, ¥628 million lower than on March 31,
2023. This was mainly attributable to a decrease in other current liabilities of ¥979 million and adecrease in long-term loans payable of ¥426 million despite increases in notes and accounts
payable-trade of ¥475 million, and short-term loans payable of ¥270 million.
(Net assets)
Net assets amounted to ¥23,604 million on June 30, 2023, ¥1,347 million higher than on March 31,
2023. This was mainly attributable to increases in foreign currency translation adjustments of ¥545
million, non-controlling interests of ¥478 million, deferred gains on hedges of ¥194 million, andretained earnings of ¥85 million.
As a result, the equity ratio stood at 47.2% on June 30, 2023 compared to 45.9% on March 31,
2023.
- 3 -

(3) Description of Consolidated Business Forecasts and Other Forward-looking
Information
The forecast of consolidated financial results for the fiscal year ending March 31, 2024 remains
unchanged from that announced on May 12, 2023 in “Consolidated Financial Results for the Fiscal
Year Ended March 31, 2023.”
Actual business and other results may differ substantially from projections due to various factors.

- 4 -2. Quarterly Consolidated Financial Statements and Key Notes(1) Consolidated Balance Sheets

Fiscal 2023
(As of March 31, 2023)
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
Goodwill
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- 5 -(Millions of yen)

1Q Fiscal 2024
(As of June 30, 2023)

2,856
8,741
6,910
1,487
4,584
801
(6)
25,376

2,185
8,707
8,241
1,367
4,503
793
(6)
25,792

4,812
2,740
3,566
11,119

4,908
2,861
3,606
11,377

196
308
504

197
318
515

2,730
2,011
(127)
4,614
16,23841,614

2,828
1,958
(138)
4,649
16,54142,334

Fiscal 2023
(As of March 31, 2023)
Liabilities
Current liabilities
Notes and accounts payable–trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Net defined benefit liability
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 other available-for-sale
Deferred gains on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets- 6 -(Millions of yen)

1Q Fiscal 2024
(As of June 30, 2023)

2,818
3,905
2,084
241
256
3,404
12,711

3,294
4,175
1,973
236
385
2,425
12,490

4,118
1,586
942
6,646
19,358

3,691
1,632
915
6,238
18,7293,144
2,964
11,486(160)
17,434

3,144
2,964
11,571(160)
17,519

842
(3)
841
(17)
1,662
3,159
22,256
41,614

889
191
1,386
(21)
2,446
3,638
23,60442,334

(2) Consolidated Statements of Income and Consolidated Statements ofComprehensive Income
Consolidated Statements of Income(First quarter consolidated accounting period)
Three Months Ended
June 30, 2022
(From April 1, 2022
to June 30, 2022)
9,248
6,979

Net sales
Cost of sales(Millions of yen)Three Months Ended
June 30, 2023
(From April 1, 2023
to June 30, 2023)
9,403
7,325

Gross profit on sales

2,268

2,077

Selling, general and administrative expenses

1,587

1,587

Operating income

680

489

Non-operating income
Interest income
Dividend income
Rental income
Foreign exchange gains
Equity in earnings of affiliates
Other

0
29
14
182
－
13

7
23
14
225
2
25

Total non-operating income

240

299

Non-operating expenses
Interest expenses
Equity in losses of affiliates
Other

34
16
3

44
－
2

Total non-operating expenses

54

47

866

741

0

－

0

－

－
4

0
0

4

0

Income before provision for income taxes

862

741

Income taxes payable

187

261

Net income

675

479

Net income attributable to non-controlling interests

130

231

Net income attributable to owners of the parent

545

248

Ordinary income
Extraordinary gains
Gain on sales of noncurrent assets
Total extraordinary gains
Extraordinary losses
Loss on sale of noncurrent assets
Loss on retirement of noncurrent assets
Total extraordinary losses- 7 -Consolidated Statements of Comprehensive Income(First quarter consolidated accounting period)

Net income
Other comprehensive income
Valuation difference on other available-for-salesecurities
Deferred gains on hedges
Foreign currency translation adjustments
Pension liability adjustment
Share of other comprehensive losses of associates
Total other comprehensive income

Three Months Ended
June 30, 2022
(From April 1, 2022
to June 30, 2022)
675(Millions of yen)Three Months Ended
June 30, 2023
(From April 1, 2023
to June 30, 2023)
479

7

47

16
706
(65)
64
730

202
763
(5)
22
1,031

Total comprehensive income

1,406

1,511

Comprehensive income attributable to:
Owners of the parent
Non-controlling interests

1,133
273

1,032
478

- 8 -

(3) Notes to Quarterly Consolidated Financial Statements(Note Concerning Going Concern Assumption)
None(Note Concerning Significant Changes in Shareholders’ Equity)
None(Segment Information)a. Three Months Ended June 30, 2022 (From April 1, 2022 to June 30, 2022)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.
b. Three Months Ended June 30, 2023 (From April 1, 2023 to June 30, 2023)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.
(Subsequent Events)
The Company disposed of treasury stock as follows based on a resolution at the Board of Directors
meeting held on July 20, 2023 regarding the disposal of treasury stock as restricted share based
remuneration.
1. Summary of disposal(1) Disposal dateAugust 4, 2023

(2) Class and number of shares for disposal

The Company’s common stock; 31,200 shares(3) Disposal price¥738 per share(4) Total disposal amount¥23,025,600(5) Eligible persons for the allotment of shares,
number of eligible persons, and number ofshares to be allocatedDirectors (excluding outside directors): 4 persons; 17,200 shares
Executive Officers: 7 persons; 14,000 shares(6) Other

The Company has submitted a securities notification regarding
this disposal of treasury stock pursuant to the Financial

2. Purpose and reason of disposal
The Company passed a resolution at the meeting of the Board of Directors held on June 1, 2021 tointroduce a new restricted share based remuneration plan (“the Plan”) for the Company’s directors(excluding outside directors; below, “Eligible Directors”) and Executive Officers (below, “Eligible
Directors, etc.” to collectively refer to both Eligible Directors and Executive Officers) in order toincrease incentives more so than before toward the sustained enhancement of corporate value andto further share value with shareholders.
- 9 -In addition, at the 82nd Ordinary General Meeting of Shareholders held on June 29, 2021,
approval was obtained pursuant to the Plan regarding the establishment of an annual cap of 80
million for the total monetary remuneration paid to Eligible Directors, a cap of 80,000 shares on
the number of restricted shares allocated in each fiscal year to Eligible Directors, and the period
from the issuance of restricted shares to the day of retirement from the position of either theCompany’s director, Executive Officer, or employee as the restriction period of the restricted shares.
For the restricted share based remuneration during the period from the 84th Ordinary General
Meeting of Shareholders to the 85th Ordinary General Meeting of Shareholders that is scheduled
to be held in June 2024, at the meeting of the Board of Directors held on July 20, 2023, a resolution
was passed to pay monetary remuneration claims of ¥23,025,600 to the Eligible Directors, etc., andallot 31,200 of the Company’s common stock as specified restricted shares by having the Eligible
Directors, etc. pay all said monetary remuneration claims according to the method of in-kind
contribution.

- 10 -