May 12, 2023

Consolidated Financial Results
for the Fiscal Year Ended March 31, 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:
Norifumi Nagaoka, Director and Executive Officer;
General Manager of General Management Division
Tel: +81-72-949-5381
Scheduled date of General Shareholders’ Meeting: June 29, 2023
Scheduled date to file Securities Report:
June 29, 2023
Scheduled date to commence dividend payments: June 30, 2023
Supplementary explanatory materials prepared:
Yes
Explanatory meeting:
No(Millions of yen with fractional amounts discarded, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2023
(April 1, 2022 to March 31, 2023)(1) Consolidated operating results

Net sales
Fiscal year ended
March 31, 2023
March 31, 2022

Millions of yen%

Operating income

Ordinary income

Net income
attributable toowners of the parent

Millions of yen

Millions of yen%

Millions of yen

2,248
1,734

29.7
27.1

1,558
726

%

39,186
23.3
2,259
44.8
31,783
4.2
1,560
15.0
Note: Comprehensive income
For the fiscal year ended March 31, 2023 ¥1,979 million (1.9%)
For the fiscal year ended March 31, 2022 ¥1,942 million (4.8%)

Earnings per share
Fiscal year ended
March 31, 2023
March 31, 2022

Yen

Dilutedearnings per
share

Return on equity(ROE)

Ordinary
income / Total
assets

Yen

%

%

85.98
－
8.4
5.7
40.16
－
4.2
4.8
Reference: Equity in earnings of affiliates
For the fiscal year ended March 31, 2023 ¥–83 million
For the fiscal year ended March 31, 2022 ¥–121 million
Note: Diluted earnings per share is not disclosed due to the absence of latent shares with dilution effect.

%

114.4
(2.1)

Operatingincome / Net
sales
%

5.8
4.9

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen

41,61437,41022,256
20,56245.9
48.3

1,053.16
998.76

Net cash provided by(used in) operating
activities

Net cash used ininvesting activities

Net cash providedby (used in)financing activities

Cash and cash
equivalents at endof yearMillions of yen

Millions of yen

Millions of yen

(540)
1,044

(1,498)(1,325)

1,824
(762)

As of
March 31, 2023
March 31, 2022

Equity ratio

Net assets per share%

Yen

Reference: Equity
As of March 31, 2023: ¥19,097 million
As of March 31, 2022: ¥18,082 million(3) Consolidated cash flows

Fiscal year ended
March 31, 2023
March 31, 2022

Millions of yen

2,846
3,030

2. Cash dividends
Total
amount ofdividends

Payoutratio(consolid
ated)

Dividends
on netassets(consolid
ated)Cash dividends per share

Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
(Forecasts)

First
quarter

Secondquarter

Third
quarter

Fiscalyear-end

Yen

Yen

Yen

Yen

Yen

Millions of
yen

%

%

－

7.00

－

7.00

14.00

253

34.9

1.5

－

7.00

－

9.00

16.00

290

18.6

1.6

－

8.00

－

8.00

16.00

Annual24.2

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

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) 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: Nonec. Changes in accounting estimates: None
d. Restatement of revisions: None
Note: For details, please see “3. Consolidated Financial Statements and Key Notes, (5) Notes toConsolidated Financial Statements (Changes in Accounting Policies)” on page 16 of the
Attachment to this report.
(3) Number of common shares issued
a. Total number of issued shares at the end of the period (including treasury stock)
As of March 31, 2023:
18,373,974 shares
As of March 31, 2022:
18,373,974 sharesb. Number of shares of treasury stock at the end of the period
As of March 31, 2023:
240,939 shares
As of March 31, 2022:
268,739 sharesc. Average number of shares
For the fiscal year ended March 31, 2023: 18,122,343 shares
For the fiscal year ended March 31, 2022: 18,095,797 shares(Reference) Summary of non-consolidated operating results
1. Non-consolidated financial results for the fiscal year ended March 31, 2023
(April 1, 2022 to March 31, 2023)(1) Non-consolidated operating results
Net sales

Operating income

Ordinary income

Net income

Fiscal year ended

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

March 31, 2023

22,676

12.8

300

83.3

843

15.6

761

67.9

March 31, 2022

20,105(3.2)

163(34.3)

730

14.8

453

19.5

Earnings per share
Fiscal year ended

Diluted earnings per share
Yen

Yen

March 31, 2023

42.02

—

March 31, 2022

25.06

—

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

(2) Non-consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

As ofMillions of yen

Millions of yen

March 31, 2023

28,60813,75848.1

758.73

March 31, 2022

26,037

13,67152.5

755.11%

Yen

Reference: Equity
As of March 31, 2023: ¥13,758 million
As of March 31, 2022: ¥13,671 million* This financial report is not subject to audits 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. Thesestatements do not guarantee that the Company will achieve its earnings forecasts. In addition, actual businessand other results may differ substantially due to various factors. For details on the conditions assumed andthe cautionary notes and items in the financial forecasts, please refer to “(4) Outlook” under “1. Overview ofBusiness Results” on page 5 of the Attachment to this report.
(Method for obtaining supplementary financial results explanatory materials)
Financial results explanatory materials are scheduled to be made available on the Company’s website on
June 14, 2023.

Contents
1. Overview of Business Results ···················································································· 2(1)Operating Results for the fiscal year ended March 31, 2023 ··········································· 2(2)Financial Position ···························································································· 3(3)Cash Flows ···································································································· 4(4)Outlook ········································································································ 5

2. Basic Approach to Selection of Accounting Standard ······················································ 7
3. Consolidated Financial Statements and Key Notes ··························································· 8(1)Consolidated Balance Sheets ················································································· 8(2)Consolidated Statements of Income and Consolidated Statements of Comprehensive Income··· 10
Consolidated Statements of Income ······································································· 10
Consolidated Statements of Comprehensive Income ····················································11(3)Consolidated Statements of Changes in Net Assets ····················································· 12(4)Consolidated Statements of Cash Flows ································································ 14(5)Notes to Consolidated Financial Statements ····························································· 16(Note Concerning Going Concern Assumption) ························································ 16(Note Concerning Significant Changes in Shareholders’ Equity) ····································· 16(Changes in Accounting Policies) ········································································· 16(Revenue Recognition)······················································································ 16(Segment Information) ···················································································· 17(Per Share Information) ··················································································· 19(Subsequent Events) ························································································· 19- 1 -1. Overview of Business Results(1) Operating Results for the fiscal year ended March 31, 2023
During the fiscal year under review (April 1, 2022 to March 31, 2023), the world economy saw signsof a moderate recovery because the COVID-19 situation in each country eased. However, the situation
surrounding the Nitta Gelatin Group remained challenging due to surging raw materials and energy
prices caused by the situation in Ukraine, worldwide inflation, and fluctuations in foreign exchange
rates.
In June 2022, the Group announced a business strategy containing the 10-year vision of “Helping
to improve people’s quality of life with collagen” and declared as specific measures a “Shift awayfrom general-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 provide a stable supply of products in order tomeet rampant demand from customers in the Food Solutions, Health Support, and Specialties domains,
and took steps to revise product prices as appropriate. In the health support category, the Group
worked to increase sales by rebranding and using mass media to strengthen marketing of collagen
health foods for general consumers. In addition, in December 2022, the Company completed
construction of Mirai-can, a new research, development and manufacturing building for creating new
products and technologies that will serve as growth drivers for the entire company and forconsolidating research, development and manufacturing functions for biomedical products as well as
research and development functions of all departments. In February 2023, the Company kicked off the
Frail-FREE Project, which proposes ways of living to stay healthy both physically and mentally for
longer, and worked to raise awareness.
As a result of the above, net sales increased 23.3% year on year to ¥39,186 million driven by sales
growth in each business. Operating income rose 44.8% year on year to ¥2,259 million underpinned bysales growth overseas, ordinary income increased 29.7% to ¥2,248 million, and net income
attributable to owners of the parent increased 114.4% to ¥1,558 million as a result of recognizing ¥616
million in gain on sale of investment securities as extraordinary income.
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, sales remained strong in Japan and North America, leading to anincrease in net sales overall.
In Japan, customers’ sales of gummy candies remained positive, leading to increased net sales. Net
sales also rose thanks to increased sales of gelatin for soups and seasonings and small-portion products
for professional-use, following the recovery of demand in the food service industry owing to theeasing of COVID-19 restrictions. Additionally, net sales for convenience store delicatessen items
increased.
- 2 -Overseas, net sales increased on robust demand for food applications in North America.
As a result, overall sales in the food solutions category increased 22.9% year on year to ¥15,370
million.
Health Support
In the health support category, overall net sales rose amid the increase in sales of gelatin for capsulesand collagen peptide.
In Japan, net sales of gelatin for capsules continued to rise, while net sales of collagen peptide forbeauty use increased amid expectations of a recovery in in-bound tourism 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, sales of collagen peptide were strong in North America, but sales of collagen peptide forhealth and beauty applications declined in Asia due to economic weakness and a dampening in
consumer sentiment amid rising inflation.
However, net sales of gelatin for capsules used in supplements and pharmaceuticals rose in North
America and India.
As a result, overall sales in the health support category increased 21.5% year on year to ¥18,802
million.
Specialties
In the specialties category, overall net sales increased by 31.9% year on year to ¥5,013 million owing
to the increased demand and rising market prices of gelatin for photographic use as well as calcium
phosphate used in feed and fertilizer applications.

(2) Financial Position(Assets)
Total assets amounted to ¥41,614 million at March 31, 2023, ¥4,203 million higher than at March 31,
2022. This was mainly attributable to a decrease in investment securities of ¥633 million, compared toincreases in inventories of ¥2,525 million, trade notes and accounts receivable of ¥1,352 million, andproperty, plant and equipment of ¥703 million.
(Liabilities)
Total liabilities amounted to ¥19,358 million at March 31, 2023, ¥2,509 million higher than at March
31, 2022. This was mainly attributable to increases of ¥1,633 million in short-term loans payable and¥718 million in long-term loans payable (including current portion).
(Net assets)
Net assets amounted to ¥22,256 million at March 31, 2023, ¥1,694 million higher than at March 31,- 3 -2022. This was mainly attributable to decreases of ¥388 million in valuation difference on otheravailable-for-sale securities and ¥169 million in remeasurements of defined benefit plans, compared toincreases of ¥1,304 million in retained earnings, ¥680 million in non-controlling interests, and ¥301
million in foreign currency translation adjustment.
As a result, the equity ratio stood at 45.9% at March 31, 2023 compared with 48.3% at March 31,
2022.

(3) Cash Flows
Cash and cash equivalents (“cash”) as of March 31, 2023 was ¥2,846 million, down ¥184 million
from March 31, 2022.
Cash flows for each activity and reasons are as follows.
(Cash flows from operating activities)
Operating activities used net cash of ¥540 million. The main components were income before
provision for income taxes of ¥2,801 million, depreciation and amortization of ¥1,572 million,
increase in inventories of ¥2,269 million, increase in trade receivables of ¥1,190 million, gain on saleof investment securities of ¥616 million, and Income taxes paid of ¥581 million.
(Cash flows from investing activities)
Investing activities used net cash of ¥1,498 million. The main components were ¥2,077 million inpurchase of property, plant and equipment and proceeds from the sale of investment securities of ¥663
million.
(Cash flows from financing activities)
Financing activities provided net cash of ¥1,824 million. The main components were proceeds fromlong-term loans payable of ¥2,819 million, repayment of long-term loans payable of ¥2,118 million,
net increase in short-term loans payable of ¥1,531 million.

- 4 -Trends in the Group’s cash flow indicators are presented below.
(Reference)
Trends in cash flow indicators:
Fiscal year
ended March
31, 2019

Fiscal year
ended March
31, 2020

Fiscal year
ended March
31, 2021

Fiscal year
ended March
31, 2022

Fiscal year
ended March
31, 2023

Equity ratio (%)

42.0

46.7

48.1

48.3

45.9

Market value equity ratio (%)

33.4

32.4

34.7

32.3

37.6

Interest-bearing debt to cash
flow ratio (Years)

4.3

4.1

2.4

8.0

－

Interest coverage ratio (Times)

9.2

10.4

31.7

10.7

－

Equity ratio: equity / total assets
Market value equity ratio: market capitalization / total assets
Interest-bearing debt to cash flow ratio: interest-bearing debt / cash flow
Interest coverage ratio: cash flow / paid interest
Notes: 1. All indicators are calculated using consolidated financial figures.
2. Market capitalization is calculated based on the number of issued shares, excluding treasury stock, as of theend of the fiscal year.
3. The figure used for cash flow is “net cash provided by operating activities” on the consolidated statements ofcash flows.
4. Interest-bearing debt includes all liabilities recorded on the consolidated balance sheets on which interest waspaid. In addition, for interest payments, the interest payment amount in the consolidated statements of cash
flows is used.
5. The interest-bearing debt to cash flow ratio and interest coverage ratio for the fiscal year ended March 31,
2023 are not presented because operating cash flows were negative.

(4) Outlook(Outlook for Business Performance in the Fiscal Year Ending March 31, 2024)
The fiscal year ending March 31, 2024 corresponds to the third year of the current medium-term
management plan (fiscal 2022 to fiscal 2024). The entire company will continue working toward
strengthening its earnings capability, steady growth, increasing company recognition through PR and
IR activities, and further promotion of sustainability activities, aimed at enhancement of corporate
value.
The world economy is forecast to see a moderate recovery, but Russia’s invasion of Ukraine has
become protracted, causing energy and raw materials prices to surge and inflation around the world.
As a result, uncertainty is expected to continue.
Amid this severe environment, in the food solution category, the Company will focus on increasing
sales of protein supplement, where the market is growing, and professional-use products for foodservice industry, in addition to applications for gummy candies, which have seen strong sales.
In the health support category, in Japan, the Company will endeavor to grow sales of collagenproducts for general consumers using aggressive PR activities, in addition to expanding sales forbeauty applications and in the sports nutrition market. Overseas, in North America, the Company will
- 5 -continue working to increase sales of collagen peptide, and in Asia, strengthen collaboration with sales
agents in countries where growth is anticipated to tap into new markets.
As for biomedical products, at Mirai-can, which was completed in December 2022, the Company
aims to increase sales of medical-use collagen and gelatin, which requires high levels of safety, andcreate technologies and products to serve as growth drivers for the entire company.
The Group will continue pursuing the possibilities of the unique material of collagen in order toextend healthy life expectancy and resolve social issues.
Regarding capital investments, in Japan, the Company will introduce facilities to transform andstreamline production as well as lower environmental impacts, while overseas, the Company will takesteps to ensure stable production and introduce facilities to lower environmental impacts.
The forecast for consolidated financial results for the next fiscal year calls for net sales of ¥40,000
million, operating income of ¥2,100 million, ordinary income of ¥2,100 million, and net income
attributable to owners of parent of ¥1,200 million.

- 6 -2. Basic Approach to Selection of Accounting Standard
The Nitta Gelatin Group plans to prepare its consolidated financial statements based on Japanese
accounting standards in the near future. This is in consideration of the need to ensure that theconsolidated financial statements can be readily compared between different periods and different
companies.
Looking ahead, considering its management policies and various conditions in Japan and abroad,
Nitta Gelatin plans to examine the adoption of International Financial Reporting Standards (IFRS). In
doing so, the Group will take into account trends such as the adoption of IFRS by its peer companies.

- 7 -3. Consolidated Financial Statements and Key Notes(1) Consolidated Balance Sheets(Millions of yen)

Fiscal 2022
(As of March 31, 2022)
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
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in process
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets- 8 -Fiscal 2023
(As of March 31, 2023)

3,046
7,389
5,955
1,396
3,104
588
(16)
21,465

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

9,743(6,334)
3,409
15,209(12,735)
2,474
2,151
977
(463)
514
1,600
1,546
(1,280)265
10,416

11,654(6,842)
4,812
16,467(13,726)
2,740
2,155
1,188
(559)
629
361
1,780
(1,360)419
11,119

232
275
507

196
308
504

3,363
2
179
1,024
569
(117)
5,021
15,94537,410

2,730
2
532
904
571
(127)
4,614
16,23841,614

(Millions of yen)

Fiscal 2022
(As of March 31, 2022)
Liabilities
Current liabilities
Notes and accounts payable–trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Accounts payable-other
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Lease obligations
Deferred tax liabilities
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-salesecurities gains on hedges
DeferredForeign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets- 9 -Fiscal 2023
(As of March 31, 2023)

2,745
2,271
1,909
191
2,648
171
224
559
10,721

2,818
3,905
2,084
246
2,536
241
256
621
12,711

3,573
379
595
1,560
17
6,126
16,848

4,118
439
486
1,586
17
6,646
19,3583,144
2,965
10,181(179)
16,112

3,144
2,964
11,486(160)
17,434

1,231
46
540
151
1,969
2,479
20,56237,410

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

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
Income(Consolidated Statements of Income)(Millions of yen)

Fiscal 2022
(From April 1, 2021
to March 31, 2022)
31,783
24,779Net sales
Cost of sales

Fiscal 2023
(From April 1, 2022
to March 31, 2023)
39,18630,286Gross profit on sales

7,003

8,900

Selling, general and administrative expenses

5,443

6,640

Operating income

1,560

2,259

Non-operating income
Interest income
Dividend income
Rental income
Outsourcing service income
Foreign exchange gains
Other

2
46
57
26
215
53

7
59
58
25
96
33

Total non-operating income

402

281

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

97
121
9
1

171
83
29
6

Total non-operating expenses

228

292

1,734

2,248

0
－
－
－

0
616
6
49

0

673

0
70
－
－
－

14
7
6
61
31

Ordinary income
Extraordinary gains
Gain on sales of noncurrent assets
Gain on sale of investment securities
Subsidy income
Compensation for expropriation
Total extraordinary gains
Extraordinary losses
Loss on sale of noncurrent assets
Loss on retirement of noncurrent assets
Loss on tax purpose reduction entry of non-current assets
Expenses related to relocation
Impairment loss
Total extraordinary losses

71

121

Income before provision for income taxes

1,663

2,801

Income taxes
Income taxes-deferred

362
267

730
(187)

Total income taxes

630

542

Net income

1,033

2,259

Net income attributable to non-controlling interests

306

701

Net income attributable to owners of the parent

726

1,558

- 10 -

(Consolidated Statements of Comprehensive Income)(Millions of yen)

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

Fiscal 2022
(From April 1, 2021
to March 31, 2022)
1,033

Share of other comprehensive losses of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests- 11 -

Fiscal 2023
(From April 1, 2022
to March 31, 2023)
2,259

106

(388)

33
659
(7)

(51)
277
(168)

116

50

908
1,942

(280)
1,979

1,503
438

1,250
728

(3) Consolidated Statements of Changes in Net Assets
Fiscal 2022 (From April 1, 2021 to March 31, 2022)(Millions of yen)
Shareholders' equity

Capital stock

Capital surplus

Retained earnings

3,144

2,966

9,690

Balance at the beginningof fiscal year
Changes during the fiscal
year
Dividends from surplus
Net income attributableto owners of the parent
Purchase of treasury
stock
Disposal of treasurystock
Net changes of items
other than shareholders’equityTotal changes during
fiscal year
Balance at the end of
fiscal year

Total shareholders’equityTreasury stock(200)

15,601

(235)

(235)

726

726

(0)

(0)

(0)

20

19
－

－

(0)

491

20

511

3,144

2,965

10,181(179)

16,112

Accumulated other comprehensive income
Valuation
Total
difference on Deferred Foreign currency Remeasurements accumulated Non-controllin
g interests
othergains ontranslationof defined benefit
otheravailable-for-sal hedges
adjustments
planscomprehensive
e securities
incomeBalance at the beginningof fiscal year
Changes during the fiscal
year
Dividends from surplus
Net income attributableto owners of the parent
Purchase of treasury
stock
Disposal of treasurystock
Net changes of items
other than shareholders’equityTotal changes during
fiscal year
Balance at the end of
fiscal year

1,125

3

(82)

145

1,192

2,079

Total net
assets

18,873

－

(235)

－

726

－

(0)

－

19

105

43

622

6

777

399

1,177

105

43

622

6

777

399

1,688

1,231

46

540

151

1,969

2,479

20,562- 12 -

Fiscal 2023 (From April 1, 2022 to March 31, 2023)(Millions of yen)

Shareholders' equity

Capital stock

Capital surplus

Retained earnings

3,144

2,965

10,181

Balance at the beginningof fiscal year
Changes during the fiscal
year
Dividends from surplus
Net income attributableto owners of the parent
Disposal of treasurystock
Net changes of items
other than shareholders’equityTotal changes during
fiscal year
Balance at the end of
fiscal year

Total shareholders’equityTreasury stock(179)

16,112

(253)

(253)

1,558

1,558

(1)

18

17
－

－

(1)

1,304

18

1,321

3,144

2,964

11,486(160)

17,434

Accumulated other comprehensive income
Valuation
Total
difference on Deferred Foreign currency Remeasurements accumulated Non-controllin
g interests
othergains ontranslationof defined benefit
otheravailable-for-sal hedges
adjustments
planscomprehensive
e securities
incomeBalance at the beginningof fiscal year
Changes during the fiscal
year
Dividends from surplus
Net income attributableto owners of the parent
Disposal of treasurystock
Net changes of items
other than shareholders’equityTotal changes during
fiscal year
Balance at the end of
fiscal year

1,231

46

540

151

1,969

2,479

Total net
assets

20,562

－

(253)

－

1,558

－

17

(388)

(50)

301

(169)

(307)

680

372

(388)

(50)

301

(169)

(307)

680

1,694

842

(3)

841

(17)

1,662

3,159

22,256- 13 -

(4) Consolidated Statements of Cash Flows(Millions of yen)

(Cash flows from operating activities)
Income before provision for income taxes
Depreciation and amortization
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Equity in losses of affiliates
Loss (gain) on sales of property, plant and equipment
Loss on retirement of noncurrent assets
Compensation for expropriation
Expenses related to relocation
Impairment loss
Loss (gain) on sales of investment securities
Loss on tax purpose reduction entry of non-current assets
Subsidy income
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued consumption taxes
Other
SubtotalInterest and dividends income received
Interest paid
Proceeds from compensation for expropriation
Expenses related to relocation paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from the sale of property, plant and equipment
Purchase of property, plant and equipment
Purchase of intangible assets
Payments for retirement of property, plant and equipment
Proceeds from the sale of investment securities
Purchase of investment securities
Other
Net cash used in investing activities- 14 -

Fiscal 2022
(From April 1, 2021
to March 31, 2022)

Fiscal 2023
(From April 1, 2022
to March 31, 2023)

1,663
1,370
48
(0)
5
(103)
(49)
97
(75)
121
(0)
70
－
－
－
－
－
－
(90)
(1,199)
(490)
(31)
59
1,395
49
(97)
－
－
(302)
1,044

2,801
1,572
58
(11)
26
(96)
(66)
171
(21)
83
13
7
(49)
61
31
(616)
6
(6)
(1,190)(2,269)
(206)
(283)
129
145
66
(158)
50
(61)
(581)
(540)

(14)
26
2
(1,218)
(64)
(47)
－
(8)
(1)
(1,325)(10)
15
0(2,077)
(82)
－
663
(8)
(0)
(1,498)(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from sale-and-leaseback transactions
Repayments of lease obligations
Cash dividends paid
Purchase of treasury stock
Cash dividends paid to non-controlling interests
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of the fiscal year

- 15 -

Fiscal 2022
(From April 1, 2021
to March 31, 2022)

Fiscal 2023
(From April 1, 2022
to March 31, 2023)

114
1,651
(2,198)
150
(206)
(235)
(0)
(38)
(762)
75
(967)
3,998
3,030

1,531
2,819
(2,118)
143
(250)
(253)
－
(48)
1,824
30
(184)
3,030
2,846

(5) Notes to Consolidated Financial Statements(Note Concerning Going Concern Assumption)
None(Note Concerning Significant Changes in Shareholders’ Equity)
The Company disposed of 27,800 shares of treasury stock effective August 5, 2022 as restricted
share-based remuneration based on a resolution at the Board of Directors meeting held on July 21,2022. As a result, treasury stock decreased by ¥18 million and capital surplus decreased by ¥1 million
in the fiscal year ended March 31, 2023. Capital surplus totaled ¥2,964 million and treasury stock¥160 million as of March 31, 2023.
(Changes in Accounting Policies)(Application of Accounting Standards Codification [ASC] 842 Lease Accounting of the
Financial Accounting Standards Board)
The Company’s overseas subsidiaries and associates that use Generally Accepted Accounting
Principles (US GAAP) have applied ASC 842 Lease Accounting from the fiscal year under review.
As a result, in principle, all leases of lessees are recorded as assets and liabilities on the balance
sheet.
Following the application of this accounting standard, as of March 31, 2023, "leased assets, net" ofproperty, plant and equipment increased by ¥152 million, "lease obligations" of current liabilities
increased by ¥47 million, and "lease obligations" of noncurrent liabilities increased by ¥107 million
yen.
Furthermore, the impact on the consolidated statements of income for the fiscal year under review
will be minimal.
(Revenue Recognition)
Information that breaks down revenue generated from customer contracts
Net sales broken down by sales category are as follows.
(Millions of yen)
Fiscal 2022

Fiscal 2023

Food Solutions

12,502

15,370

Health Support

15,48018,802

Specialties

3,800

5,013

Total

31,78339,186- 16 -

(Segment Information)
Segment Information
Fiscal 2022 (From April 1, 2021 to March 31, 2022)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.
Fiscal 2023 (From April 1, 2022 to March 31, 2023)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.
Related information
Fiscal 2022 (From April 1, 2021 to March 31, 2022)
1. Information by products and services
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.
2. Information by countries and regions(1) Net sales(Millions of yen)
Japan

India

15,597

Asia

3,779

U.S.

3,108

Canada

7,099

Other

1,851

Total
346

31,783

Note: Sales are classified into countries or regions based on customers’ locations.

(2) Property, plant and equipment(Millions of yen)
Japan
4,785

India

Asia
3,098

U.S.
33

Canada
1,823

Total
674

3. Information by main customer
The Company has omitted disclosure because no sales to any external customer exceeded
10% of the total net sales on the consolidated statements of income.

- 17 -

10,416

Fiscal 2023 (From April 1, 2022 to March 31, 2023)
1. Information by products and services
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.
2. Information by countries and regions(1) Net sales(Millions of yen)
Japan

India

17,697

Asia

5,221

U.S.

3,185

Canada

9,393

Other

3,031

Total
658

39,186

Note: Sales are classified into countries or regions based on customers’ locations.

(2) Property, plant and equipment(Millions of yen)
Japan

India

5,239

Asia
3,195

U.S.
33

Canada
1,999

Total
651

3. Information by main customer
The Company has omitted disclosure because no sales to any external customer exceeded
10% of the total net sales on the consolidated statements of income.
Information on impairment loss on noncurrent assets by reporting segments
Fiscal 2022 (From April 1, 2021 to March 31, 2022)
None
Fiscal 2023 (From April 1, 2022 to March 31, 2023)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.
Information on amortization of goodwill and unamortized amounts by reporting
segments
Fiscal 2022 (From April 1, 2021 to March 31, 2022)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.
Fiscal 2023 (From April 1, 2022 to March 31, 2023)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.
- 18 -

11,119

Information on gain on negative goodwill by reporting segments
Fiscal 2022 (From April 1, 2021 to March 31, 2022)
None
Fiscal 2023 (From April 1, 2022 to March 31, 2023)
None(Per Share Information)
Fiscal 2022
(From April 1, 2021
to March 31, 2022)

Fiscal 2023
(From April 1, 2022
to March 31, 2023)

Net assets per share¥998.76¥1,053.16

Earnings per share¥40.16¥85.98Notes: 1. Diluted earnings per share is not disclosed due to the absence of latent shares with dilution effect.
2. Basis for calculating earnings per share data is shown below.

Fiscal 2022
(From April 1, 2021
to March 31, 2022)

Fiscal 2023
(From April 1, 2022
to March 31, 2023)

Earnings per share
Net income attributable to owners of the parent(Millions of yen)Amounts not attributable to common shareholders(Millions of yen)
Net income attributable to owners of the parent
related to common stock (Millions of yen)
Average number of common shares during theperiod (shares)(Subsequent Events)
None- 19 -

726

1,558

—

—

726

1,558

18,095,797

18,122,343