May 14, 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 Income and Extraordinary
Gains/Losses, and Differences between Full-Year Consolidated Financial
Forecasts and Results, and Differences between Non-consolidated Financial
Results and Previous Fiscal Year’s Results
Nitta Gelatin Inc. hereby announces that it has recorded non-operating income and extraordinary
gains/losses for the fiscal year ended March 31, 2019, along with reporting differences between its
full-year consolidated financial forecasts for the fiscal year ended March 31, 2019 announced on
February 8, 2019 and the results announced today.
At the same time, Nitta Gelatin also reports differences between its non-consolidated financial
results for the fiscal year ended March 31, 2019 and the previous fiscal year’s results. Details are asfollows.
1. Recording of non-operating income (foreign exchange gains) (non-consolidated)
The Company recorded foreign exchange gains of ¥239 million as non-operating income for thefiscal year ended March 31, 2019.
The gains were mainly caused by a change in the valuation of the Company’s foreign
currency-denominated assets and liabilities in line with foreign exchange market conditions at theend of March 2019.
2. Recording of extraordinary gain (subsidy income) (non-consolidated/consolidated)
The Company recorded subsidy income of ¥147 million (non-consolidated/consolidated) as an
extraordinary gain in the fiscal year ended March 31, 2019.
The income was generated by the grant of a support subsidy for promoting investment in energy
efficiency.
3. Recording of extraordinary loss (tax purpose reduction entry of noncurrent assets)(non-consolidated/consolidated)
The Company recorded a loss on tax purpose reduction entry of noncurrent assets of ¥147 million(non-consolidated and consolidated) as an extraordinary loss for the fiscal year ended March 31,
2019.
The loss was incurred by directly reducing the value of noncurrent assets from their acquisition
price by the amount of the subsidy income in 2.
1

4. Recording of extraordinary loss (loss on valuation of shares of subsidiaries)(non-consolidated)
The Company recorded a loss on valuation of shares of subsidiaries of ¥299 million as an
extraordinary loss for the fiscal year ended March 31, 2019.
This loss was due to a substantial decrease in the valuation of the real value of shares of
consolidated subsidiary Nitta Casings Inc.
The extraordinary loss will not affect the consolidated business results, as the entire amount will
be eliminated in Nitta Gelatin’s consolidated financial statements.
5. Recording of extraordinary loss (impairment loss) (consolidated)
The Company recorded an impairment loss of ¥634 million as an extraordinary loss for the fiscal
year ended March 31, 2019.
The loss was due to a write-down of the book value of the noncurrent assets of consolidated
subsidiary Nitta Gelatin India Ltd. to their recoverable amount after an examination of their future
recoverability. The examination was undertaken when the assets showed signs of impairment
following a decline in profitability.
6. Differences between full-year consolidated financial forecasts for the fiscal year ended
March 31, 2019 and results (from April 1, 2018 to March 31, 2019)
Net sales

OperatingincomeOrdinary
incomeNet income
attributableto owners ofthe parent

Net income
per share

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

Previous forecast (A)36,500

700

600

1,000

¥54.43Results for the Year Ended
March 2019 (B)36,464898

828989¥53.85Difference (B-A)

(35)

198

228

(10)

% change(Reference)
Results for the previous fiscal
year (ended March 31, 2018)

(0.1)

28.3

38.1

(1.1)

37,777

1,094

978(599)(32.61)

Reasons for the difference
Net sales were at the same level as the previous forecast. Operating income and ordinary income
both exceeded the previous forecast due to penetration of revised pricing in domestic sales andefforts to reduce costs in and outside Japan. Net income attributable to owners of the parent was
lower than the previous forecast due to recording of impairment losses as described in 5. Recordingof extraordinary loss (impairment loss).

2

7. Differences between non-consolidated financial results for the fiscal year ended March 31,
2019 (from April 1, 2018 to March 31, 2019) and the previous fiscal year’s results

Results for the Year Ended
March 2018(A)Results for the Year Ended
March 2019 (B)Net sales

OperatingincomeOrdinary
incomeNet income

Net income
per share

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

23,210863

1,039(1,256)¥(68.37)

22,311

316

997

1,005

¥54.72Difference (B-A)

(898)

(547)

(41)

2,261

% change(3.9)(63.4)(4.0)―

Reasons for the difference
Net sales decreased year on year in the adhesives business as changes in customer supply anddemand resulted in lower sales of hygiene materials. Furthermore, operating income and ordinary
income were both lower year on year due to persistently high prices of raw material for fish gelatin,
despite the recording of foreign exchange gains as described in 1. Recording of non-operating
income (foreign exchange gains).
Meanwhile, net income attributable to owners of the parent exceeded the previous year, mainly
due to the recording of extraordinary gains on transfer gain on business divestiture.

3