February 8, 2019
Company name
Representative

Nitta Gelatin Inc.

Koichi Ogata,
Representative Director and President(Stock code: 4977; First Section of Tokyo Stock Exchange)
Norifumi Nagaoka,
Contact
Director and Executive Officer
General Manager of General Management Division
Phone Number +81-72-949-5381

Notice Concerning Recording of Non-Operating Expenses (Equity in Losses ofAffiliates) and Revision of Full-Year Consolidated Financial Forecasts andYear-End Dividend Forecast (Commemorative Dividend for 100th Anniversaryof Foundation) for the Fiscal Year Ending March 31, 2019
Nitta Gelatin Inc. hereby announces that it has recorded non-operating expenses (equity in lossesof affiliates) for the nine months ended December 31, 2018 (from April 1, 2018 to December 31,2018). At the same time, Nitta Gelatin also announces a revision to its consolidated business
forecasts for the fiscal year ending March 31, 2019, announced on November 8, 2018. Details are
as follows.
Nitta Gelatin also announces that a Board of Directors meeting held today passed a resolution
on the revision of the year-end dividend forecast for the fiscal year ending March 31, 2019, withdetails as follows.

1. Detail of non-operating expenses (equity in losses of affiliates)
The Company recorded equity in losses of affiliates of ¥146 million as a non-operating expense forthe nine months ended December 31, 2018 (from April 1, 2018 to December 31, 2018).
The loss was mainly caused by the forecast of recording an impairment loss on fixed assets(expected to have an impact of ¥259 million on the Company’s consolidated financial results),
which was based on the measurement of an impairment loss on consolidated subsidiary, Beijing
Qiushi Collagen Casing Co., Ltd., conducted according to the Accounting Standard for Impairmentof Fixed Assets.

2. Revision of consolidated business forecasts for the fiscal year ending March 31, 2019
(April 1, 2018 to March 31, 2019)
Net sales

Operatingincome

Ordinary
incomeNet income
attributable toowners of theparent

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Net income
per shareyen

Previous forecast (A)37,100

1,200

1,000

1,400

76.20

Revised forecast (B)36,500

700

600

1,000

54.43

Difference (B-A)

(600)

(500)

(400)

(400)

(41.7)(40.0)(28.6)% change(Reference) Results for theprevious fiscal year (fiscalyear ended March 31, 2018)(1.6)
37,777

1,095

-1-

1,009

(615)

(33.50)Reasons for revision
The Company forecasts rising costs due to an increase in the price of fish derived raw materials
in addition to decreases in net sales for gelatin used for confectionary and food preparation andcollagen peptide used for beauty applications in Japan. In addition, the Company expects its
operating income, ordinary income and net income attributable to owners of the parent for thefiscal year ending March 31, 2019 to fall below the forecast announced on November 8, 2018
due to recording of non-operating expenses (equity in losses of affiliates) as mentioned in above
1.

3. Revision of the year-end dividend forecast
Dividends per share
Second quarter

Fiscal year-end

yen

Total
yen

yen

12.00
16.00
(Year-end dividend 12.00)(Commemorative dividend 4.00)
12.00

Previous forecast-

Revised forecast-Results

6.00

6.00
10.00
(Year-end dividend6.00)(Commemorative dividend 4.00)-(Reference) Results for theprevious fiscal year (fiscalyear ended March 31, 2018)

6.00

6.00

Reasons for revision
The Company marked the 100th anniversary of its founding in April 2018. It wanted to use thisopportunity to express its sincere appreciation to its many stakeholders, including shareholders,for their support.
As a result, the Company has decided to express gratitude to shareholders for their support
with a commemorative dividend of ¥4.00 per share in addition to the ordinary dividend of ¥6.00
per share, resulting in a year-end dividend of ¥10.00 per share.
* The business forecasts in this press release were formulated based on information available as of theannouncement of this press release. Various factors going forward may cause actual results to differ fromthe forecasts.

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