February 8, 2013

Consolidated Financial Results
for the Nine Months Ended December 31, 2012
(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 Affairs Division
Tel: +81-72-949-5381
Scheduled date to file Quarterly Securities Report: February 12, 2013
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 the nine months ended December 31, 2012
(from April 1, 2012 to December 31, 2012)(1) Consolidated operating results(Percentages indicate year-on-year changes.)
Net sales
Nine months ended
December 31, 2012
December 31, 2011

Operating income

Ordinary income

Net income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

21,31020,870

2.1
―

1,195
1,620

(26.2)
―

1,458
1,518

(3.9)
―

1,068
906

17.8
―

(Note) Comprehensive income
For the nine months ended December 31, 2012: ¥1,266 million (167.0%)
For the nine months ended December 31, 2011: ¥474 million (-%)

Diluted net
income pershare

Net income
per share
Nine months ended
December 31, 2012
December 31, 2011

Yen

Yen

67.73
68.56

―
―

(2) Consolidated financial position
Total assets
As ofDecember 31, 2012
March 31, 2012
(Reference) Equity
As of December 31, 2012:
As of March 31, 2012:

Net assets

Equity ratio

Millions of yen

Millions of yen%

24,69523,371

9,216
8,108

36.8
34.4

¥9,076 million¥8,033 million

2. Cash dividends
Cash dividends per share

Fiscal year ended
March 31, 2012
Fiscal year ending
March 31, 2013
Fiscal year ending
March 31, 2013
(Forecasts)

First
quarter

Secondquarter

Third
quarter

Fiscalyear-end

Yen

Yen

Yen

Yen

Yen

–

2.00

–

8.00

10.00

–

6.00

–
8.00

14.00

AnnualNotes: 1. Changes to most recent consolidated financial forecasts:: Yes
2. Breakdown of dividends forecast for the March 31, 2013 fiscal year-end: ¥6.00 in ordinary dividend and ¥2.00 incommemorative dividend per share. For details, please refer to the “Notice Regarding Year-end Dividend Forecast Revision(Commemorative Dividend for Listing on the First Section of the Tokyo Stock Exchange) for the Year Ending March 31,
2013” released today (February 8, 2013).

3. Consolidated financial forecasts for the fiscal year ending March 31, 2013
(from April 1, 2012 to March 31, 2013)
OperatingincomeNet sales

Fiscal year ending
March 31, 2013

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

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

28,900

4.1

2,070

2.7

2,100

4.9

1,370

(0.4)

86.87

(Note) Changes to most recent consolidated financial forecasts: None

Notes
(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in achange in the scope of consolidation): Yes
New: 1 (Beijing Nitta Collagen Casing Co., Ltd.)
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 standards 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: Yes
d. Restatement of revisions: No
Note: For details, please refer to “(2) 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 December 31, 2012
15,770,074 shares
As of March 31, 2012
15,770,074 sharesb. Number of shares of treasury stock at the end of the periodAs of December 31, 2012
As of March 31, 2012162 shares
162 sharesc. Average number of shares
For the nine months ended December 31, 2012
For the nine months ended December 31, 201115,769,912 shares
12,814,808 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“Qualitative Information Concerning Consolidated Business Forecasts” on page 4 of the Attachment
Contents to this report.

Attachment Contents
1. Qualitative Information Concerning Quarterly Financial Statements･･･････････････････････ 2(1) Qualitative Information Concerning Consolidated Business Results････････････････････････ 2(2) Qualitative Information Concerning Consolidated Financial Position･･･････････････････････ 3(3) Qualitative Information Concerning Consolidated Business Forecasts･･･････････････････････ 4

2. Matters Concerning Summary Information (Notes)･･････････････････････････････････････ 5(1) Significant Changes in Subsidiaries During the Quarterly Period Under Review･･･････････････ 5(2) Changes in Accounting Policies and Estimates, and Restatement of Revisions････････････････ 5

3. Quarterly Consolidated Financial Statements･･･････････････････････････････････････････ 6(1) Consolidated Balance Sheets ･･････････････････････････････････････････････････････ 6(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ････ 8(3) Note Concerning Going Concern Assumption ･････････････････････････････････････････ 10(4) Note Concerning Significant Changes in Shareholders’ Equity･････････････････････････････ 10(5) Segment Information･････････････････････････････････････････････････････････････ 10

11. Qualitative Information Concerning Quarterly Financial Statements(1) Qualitative Information Concerning Consolidated Business Results
In the first nine months of the year ending March 31, 2013, overseas economies
remained on a weak recovery track on the whole. Although the U.S. economy continued
to stage a gradual recovery, the European debt problem and financial crisis persisted,along with slowing expansion in the Indian and Chinese economies and flat growth in
the Southeast Asian economies. On the other hand, the Japanese economy showed signsof gradual recovery related to demand generated by post-quake reconstruction.
Deflation spread, however, due to factors such as the global economic slowdown,
anemic exports due to the yen’s protracted appreciation, and concerns about the impact
of Japan’s strained diplomatic relations with other countries on economic activity.
As the advent of a new government administration brought hopes of policies toescape deflation, the economic outlook improved in some aspects due mainly to theabrupt depreciation of the yen and the rise in the Nikkei Stock Average, but the sense of
uncertainty about Japan's economic prospects continued.
Against this backdrop, the Nitta Gelatin Group has adopted three basic management
policies: (1) Customer First; (2) Globalization & Innovation; and (3) Selection andConcentration. Guided by these policies, the Group has actively worked to provide
products and services that satisfy customers, and develop new products and cultivate
new markets, with the aim of rising above the challenging business conditions.
Overseas, the Group posted strong sales atop buoyant demand. In Japan, sales
declined, reflecting the deflation-mired economy.
As a result, in the nine months of the fiscal year ending March 31, 2013, net sales
were up 2.1% year on year to ¥21,310 million. Operating income was down 26.2% to¥1,195 million due to a rise in energy costs in Japan and the yen depreciating. Ordinary
income was held to a decrease of 3.9% to ¥1,458 million on account of an increase inequity in earnings of affiliates and a foreign exchange gain. Net income increased
17.8% to ¥1,068 million, mainly because of lower income taxes.
Segment business performance was as follows:(a) Collagen Material BusinessIn the gelatin field, the Group posted sharply lower photographic gelatin sales. However,sales of gelatin for capsules performed strongly in Japan. Meanwhile, sales of edible
gelatin in Japan declined, reflecting the end of a temporary boost in sales from2

post-quake demand in the first nine months of the previous fiscal year and a decline in
the unit sales prices for food manufacturers. In overseas markets, on the other hand,sales increased due to buoyant demand for edible gelatin and gelatin for capsules.
Another contributing factor was the positive impact of the revision of gelatin prices to
the Group’s advantage.
Collagen peptide sales declined year on year, mainly reflecting falling sales prices inJapan, intensified competition with other materials in the health foods market, and due
to delays in the Group’s development of the Chinese market.
Collagen casing sales increased, buoyed by robust demand for collagen casings for
snack sausages in the U.S. and strong exports to China.
As a result, net sales in the segment were up 4.4% year on year to ¥13,587 million
and segment profit (operating income) was down 27.4% to ¥1,315 million.
(b) Formula Solution BusinessIn food materials, overall sales were sluggish due to lackluster sales of ingredients fordelicatessen items reflecting intensified competition. This was despite steady growth insales of stabilizers for ham, sausage and other meat products, in addition to gelling
agents for use in chilled desserts sold in convenience stores.
In adhesives, overall sales declined mainly due to the sale of certain productbusinesses and lower sales of hot melt adhesives for bookbinding applications owing to
weak conditions in the publishing sector. This was partly offset by firm sales of hot melt
adhesives for building materials supported by recovery demand from the Great East
Japan Earthquake, and newly developed high-performance gaskets.
As a result, net sales in the segment were down 1.6% year on year to ¥7,722 million.
Segment profit (operating income) was up 10.0% to ¥897 million, as prices of raw
materials for adhesives stopped increasing.
(2) Qualitative Information Concerning Consolidated Financial Position(a) Assets, liabilities and net assets
Total assets amounted to ¥24,695 million at December 31, 2012, ¥1,323 million higher
than at March 31, 2012.
(Current assets)
Current assets increased ¥378 million from March 31, 2012 to ¥15,314 million. This3

was mainly due to a ¥503 million increase in inventories.
(Noncurrent assets)
Noncurrent assets increased ¥945 million from March 31, 2012 to ¥9,381 million at
December 31, 2012. This was mainly due to a ¥611 million increase in property, plantand equipment in line with capital expenditures, and a ¥292 million increase ininvestment securities primarily caused by increased market value.
(Current liabilities)
Current liabilities stood at ¥9,462 million at December 31, 2012, ¥286 million higher
than at March 31, 2012. This was attributable to a ¥323 million decrease in income
taxes payable which was partly offset by a ¥273 million increase in notes and accounts
payable-trade, and a ¥362 million increase in the current portion of long-term loans
payable.
(Noncurrent liabilities)
Noncurrent liabilities decreased ¥71 million to ¥6,016 million. This was mainly due to a¥200 million decrease in bonds payable and a ¥120 million decrease in provision for
retirement benefits, which were partly offset by a ¥296 million increase in long-termloans payable.
(Net assets)
Net assets increased ¥1,108 million to ¥9,216 million. The main contributing factors
were a ¥229 million rise in foreign currency translation adjustments in line with the
yen’s depreciation from the previous fiscal year-end, and a ¥847 million increase inretained earnings.
As a result, the equity ratio stood at 36.8% as of December 31, 2012, compared to34.4% at March 31, 2012.
(3) Qualitative Information Concerning Consolidated Business Forecasts
The Group has not revised its consolidated business forecasts for the fiscal year ending
March 31, 2013, which were announced in “Consolidated Financial Results for the
Fiscal Year Ended March 31, 2012 (Japanese Accounting Standards)” on May 11, 2012.
Actual business and other results may differ substantially from projections due to4

various factors.
2. Matters Concerning Summary Information (Notes)(1) Significant Changes in Subsidiaries During the Quarterly Period Under Review
Beijing Nitta Collagen Casing Co., Ltd., a joint venture company, was established in
September 2012 with Beijing Qiushi Agriculture Development Co., Ltd., a sheep casing
processing company in Beijing, for the purpose of expanding sales of collagen casing in
China. Beijing Nitta Collagen Casing Co., Ltd. was included in the scope of
consolidation from the second quarter of the fiscal year ending March 31, 2013.
(2) Changes in Accounting Policies and Estimates, and Restatement of Revisions(Changes in Depreciation Method)
Following the amendment of the Corporation Tax Act, effective from the first quarter ofthe year ending March 31, 2013, the Company and its domestic consolidated
subsidiaries have changed the method of depreciation for tangible fixed assets acquiredon or after April 1, 2012 to the method of depreciation stipulated by the amended
Corporation Tax Act.
This change will have only a negligible impact on operating income, ordinary income
and income before income taxes and minority interests for the first nine months of theyear ending March 31, 2013.

5

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

Fiscal 2012
(As of March 31, 2012)

3Q Fiscal 2013
(As of December 31, 2012)

2,098,305
6,449,185
4,011,191
651,952
1,308,008
431,247(14,013)
14,935,878

1,993,467
6,291,036
4,242,612
786,661
1,445,284
573,090(18,089)
15,314,062

2,519,511
1,160,053
1,707,611
5,387,176

2,677,403
1,118,457
2,202,444
5,998,305

18,491
18,491

43,841
43,841

2,055,225
976,926(1,814)3,030,338
8,436,005
23,371,884

2,347,503
993,253(1,753)3,339,003
9,381,150
24,695,212

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 2012
(As of March 31, 2012)

3Q Fiscal 2013
(As of December 31, 2012)

3,476,611
925,340
1,878,380
330,000
387,141
235,319
1,943,430
9,176,223

3,750,307
996,585
2,241,301
200,000
63,883111,246
2,099,224
9,462,547

200,000
3,261,365
2,158,327
33,772434,018
6,087,483
15,263,707－
3,557,802
2,037,414
35,009385,997
6,016,223
15,478,771

1,577,121
1,398,633
6,889,910(68)
9,865,597

1,577,121
1,398,633
7,737,254(68)
10,712,940

416,438

395,264

6,173(1,350,928)

27,235(1,121,867)(903,985)(937,410)(1,832,302)(1,636,777)

74,881
8,108,176
23,371,884

140,278
9,216,441
24,695,212

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
Bonds payable
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 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 ofComprehensive Income
Consolidated Statements of Income(Thousands of yen)

3Q Fiscal 2012
(From April 1, 2011
to December 31, 2011)
20,870,294
15,607,080

3Q Fiscal 2013
(From April 1, 2012
to December 31, 2012)
21,310,129
16,361,577

Gross profit on sales

5,263,213

4,948,551

Selling, general and administrative expenses

3,642,705

3,752,619

Operating income

1,620,507

1,195,931

566
16,950－74,24052,084673
18,85663,868238,158
75,944

143,841

397,500

132,285
50,02544,726
18,881

112,977

245,919

134,847

1,518,430

1,458,584

268

15,701

268

15,701

20,000
10,2464,500

9,165
15,177

Net sales
Cost of sales

Non-operating income
Interest income
Dividend income
Foreign exchange gains
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Public offering expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Total extraordinary income
Extraordinary losses
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
Loss on valuation of golf club memberships
Total extraordinary losses
Income before income taxes and minority
interests
Income taxes
Income before minority interests
Minority interests in income
Net income

8－－
21,87034,746－24,343

1,483,951

1,449,942

570,323
913,628
7,109
906,518

378,162
1,071,780
3,657
1,068,122

Consolidated Statements of Comprehensive Income(Thousands of yen)

3Q Fiscal 2012
(From April 1, 2011
to December 31, 2011)
913,628

3Q Fiscal 2013
(From April 1, 2012
to December 31, 2012)
1,071,780(24,401)(21,229)(9,761)

16,103Foreign currency translation adjustments(277,495)

231,218

Pension liability adjustment of foreignsubsidiaries
Share of other comprehensive loss of
associates accounted for using equity method
Total other comprehensive loss
Total comprehensive income
Comprehensive income attributable to:
Owners of the parent
Minority interests

78,369(33,425)(205,934)

2,016(439,223)
474,404

194,683
1,266,463

467,269
7,135

1,263,647
2,816

Income before minority interests
Other comprehensive income (loss)
Valuation difference on otheravailable-for-sale securities
Deferred losses on hedges

9(3) Note Concerning Going Concern Assumption
None(4) Note Concerning Significant Changes in Shareholders’ Equity
None(5) Segment Information(Segment information)
I. First nine months of the fiscal year ended March 31, 2012 (From April 1, 2011 to
December 31, 2011)
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

13,019,611

7,850,682

20,870,294－

20,870,294

1,032,630－

1,032,630(1,032,630)－

14,052,242
1,811,581

7,850,682
816,012

21,902,924
2,627,593(1,032,630)(1,007,086)

20,870,294
1,620,507(Notes) 1. Adjustment for segment income of -¥1,007,086 thousand comprises
elimination of intersegment transactions of ¥4,545 thousand andunallocated expenses of ¥1,011,632 thousand.
2. 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 report10II. First nine months of the fiscal year ending March 31, 2013 (From April 1, 2012
to December 31, 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

13,587,569

7,722,559

21,310,129－

21,310,129

1,002,929－

1,002,929(1,002,929)－

14,590,498
1,315,199

7,722,559
897,393

22,313,058
2,212,592(1,002,929)(1,016,660)

21,310,129
1,195,931(Notes) 1. Adjustment for segment income of -¥1,016,660 thousand comprises
elimination of intersegment transactions of ¥2,281 thousand andunallocated expenses of ¥1,018,941 thousand.
2. 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 report11