May 10, 2013
Company name: Nitta Gelatin Inc.
Representative: Norimichi Soga, Representative Director and President(Stock code: 4977; First Section of Tokyo Stock Exchange)
Contact: Tsuneo Sasaki, Director and Senior Managing Executive Officer
General Manager of General Administration Division
Tel: +81-72-949-5381

Nitta Gelatin Announces Medium-term Management Plan
Nitta Gelatin Inc. today announced a medium-term management plan covering the three-year period
from the fiscal year ending March 2014 to the fiscal year ending March 2016.
Since formulating long-term vision CFG2016 in 2011, Nitta Gelatin has successfully listed on theFirst Section of the Tokyo Stock Exchange and accelerated global busuiness development in Asia
and North America.
Meanwhile, the macro-economic environment has witnessed a host of changes. This includes a
global economic slowdown caused by fiscal problems in Europe, the U.S. and elsewhere; slowing
economic growth in China, India, and other emerging markets in Asia; and rising prices for gelatin
raw materials; not to mention energy price hikes, a change of government, the yen’s depreciationand higher share prices in Japan.
Given these changes in its operating environment and the upcoming 100th anniversary of its
founding in 2018, Nitta Gelatin decided to formulate a new long-trem management vision, 100thYear Vision, and a medium-term management plan based on it.
1. Assumed Market Environment and Business Opportunities
Japan continues to see changes in diets and consumption spurred by market maturation and thepopulation aging. Nitta Gelatin believes that diversification in consumer needs amid these changes
will present opportunities for creating new applications and markets for the Company’s products.
Overseas, meanwhile, economic development in emerging markets and population growth should
result in market expansion for the Company’s products. In the Asian region in particular, which is
the Company’s home market, rising incomes accompanying economic growth in China, India andelsewhere, are expected to lead to increasingly Westernized and diverse diets. Nitta Gelatin believes
that these dynamics will increase demand for the Company’s products in the processed food, healthfood and pharmaceuticals markets and thus create opportunities to expand sales.

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2. 100th Year Vision
The slogan for Nitta Gelatin’s 100th Year Vision is to “Amaze the World!” Under this slogan, theCompany set up three principles for actions: “Be More Dynamic, Quicker, with Team Play”.
Anticipating customer and market needs, Nitta Gelatin will work to develop products andapplications and quickly provide products and services a step ahead of customers’ expectations. In
this way, Nitta Gelatin aims to impress customers, garnering even more trust and expandingbusiness.
The Company intends to develop business with the basic strategy of “Win out!! in growing Asianmarket”.
Nitta Gelatin’s mainstay products—gelatin, peptides, and casings—are expected to see higher
demand in Asia markets experiencing ongoing economic growth. Leveraging the competitive edgeof a company that is headquartered in Asia, Nitta Gelatin plans to keep up with this growing Asianmarket demand to expand business. By doing so, Nitta Gelatin aims to be the “Leader in Asia and a
Globally Unique Enterprise” in terms of both business size and uniqueness, as a company centeredon gelatin.
The following are Nitta Gelatin’s key strategic themes in its 100th Year Vision:(1) Achieve globally competitive costs(2) Reinforce supply capabilities and expand sales(3) Promote development-based sales(4) Pursue product development and basic research(5) Implement global management and human resource development
3. Medium-term Management Plan
(1) Consolidated Operating Results
Year ended Mar. 2013
(Actual)Year ending Mar. 2014
(Plan)

Year ending Mar. 2015
(Plan)

Year ending Mar. 2016
(Plan)Net sales

¥28.7

¥32.7

¥38.6

¥41.0

Operating income

¥1.6

¥1.7

¥2.7

¥4.2

Ordinary income

¥2.0

¥1.8

¥2.6

¥3.8

Net income

¥1.5

¥1.3

¥1.5

¥2.4

Overseas sales ratio

33%

39%44%

45%(Billions of yen)

(Note) Planned figures from the fiscal year ending March 31, 2014 assume the following exchange
rates: ¥88.0 = US$1, ¥88.0 = C$1, ¥13.0 = 1 yuan, and ¥1.5 = 1 Indian rupee

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Collagen Material Business
1) Bolster the gelatin business’ global competitiveness and increase supply capabilities
Nitta Gelatin plans to achieve further cost reductions through energy savings and increased
production efficiency. With the prices of gelatin raw materials increasing, the Company will step up
efforts to strengthen the supply chain of raw materials such as by diversifying the source countries
and cultivating new suppliers in order to secure the stable procurement of raw materials. Throughthese initiatives, the Company believes it can achieve global cost competitiveness. To keep pacewith increasing demand in the Asian market and expand sales, the Company intends to ramp up
production and secure new supply bases in North America and India to upgrade the Group’s supply
capabilities. Moreover, Nitta Gelatin will bolster the development of products for meetingcustomers’ needs. In particular, Nitta Gelatin will develop unique products no other companies have,and open up new markets with new applications.
2) Expand the peptide business globally
The Company will push ahead with research into the functional characteristics of collagen peptides,with the view to using the results of this research as the basis for new product and application
development to create new markets. Nitta Gelatin will also expand peptide production and sales inChina. And at the beginning of the fiscal year ending March 31, 2015, it will bring online a peptide
plant under construction in the U.S. to increase supply capabilities. Behind these initiatives is Nitta
Gelatin’s plans to expand sales by achieving greater penetration of Wellnex as a global brand inJapan, Asian markets, including China, and North America.
3) Expand the casing business
Manufacturing facilities in North America will be revamped and efficiency improved to raise theproductivity of collagen casing production as well as quality, which should translate into greater
cost competitiveness. At the same time, the Company will expand sales, centered on the North
American market. Furthermore, Nitta Gelatin plans to expand business in China, where theprocessed meat products market is growing fast, by putting in place a production and sales system.
4) Develop the life science business
The medical field is seeing rapid advances in practical research such as regenerative medicine using
tissue engineering, iPS cells and ES cells. Gelatin and collagen are in the limelight in this field
because of their high physiological compatibility. Nitta Gelatin will commercialize high-quality,
safe gelatin and collagen matched to the needs of medical research institutes and medical device
manufacturers worldwide. In this way, the Company will contribute to advances in research andpractical applications, as it works to build a future business driver worldwide.
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Formula Solution Business
1) Expand business by providing food solutions in the food material business
Nitta Gelatin will strengthen the functions of application laboratories in Japan, the U.S., India,
China and elsewhere, as it seeks to expand sales by developing new applications and products
matched to customer and market needs in each region. Furthermore, the Company will establish
production and sales systems in Vietnam and start production and sales of food agents such asgelling agents in Southeast Asia.
2) Transform the adhesives business into a high-profit business
Sealants (high-performance gaskets) are attracting attention as products that can help rationalize theproduction of smartphones, smart meters, digital cameras and other electronic equipment. TheCompany plans to offer these sealants in Asian countries, the main production regions of electronicequipment, to grow a future earnings driver. Furthermore, Nitta Gelatin will raise the productivityof hot-melt adhesive, a core product, develop new products, and expand sales. To support theseactivities, the Compnay plans to rebuild the Osaka Plant and build application laboratories.
3) R&D strategy
The Company will pursue unlimited possibilities in collagen, gelatin and peptides by stepping up
basic and applied research. It will utilize the results of this research to develop next-generation
products for the life sciences field.
4) Strengthen the management system
In order to raise management transparency more, the Company plans to strengthen investor
relations, as well as turn affiliated companies in India into subsidiaries. Additionally, by creating aGroup IT infrastructure, increasing asset efficiency, and developing global human resources, Nitta
Gelatin will upgrade its global management system.
5) Capital investment plan
The Company plans to make capital investments totaling around ¥11.0 billion during the period
covered by the medium-term management plan. The main planned uses are as follows:・Construct U.S. peptide plant・Deploy new facilities in the casing business・Deploy facilities to boost efficiency at the Osaka Plant
・Increase production capacity at overseas gelatin plants
Nitta Gelatin aims to achieve continuous growth by working quickly as a cohesive group onstrategic themes in its medium-term management plan and achieving its goals. Furthermore, bystepping up efforts to save energy, conserve resources and other actions, Nitta Gelatin will answer
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society’s demands to reduce CO2 emissions and other environmental demands. This should help
raise the Company’s corporate value and ensure it can continue contributing to society for many
years to come.
Forward-looking Statements
This press release includes forward-looking statements about the Company’s and Group companies’ assumptions,forecasts, targets, plans and so forth. These forward-looking statements are based on information currently available to
the Company and are the basis of forecasts, etc. at the time this press release was prepared. Furthermore, since certain
assumptions are used for these statements, they may prove to be inaccurate in the future and may not be attainable.
These statements and assumptions are subjective and as such detemination of future accuracy is impossible. There aremany uncertainties and risks that can cause this situation. Please refer to the latest materials published by the Company,including earnings reports, securities reports and annual reports, for related information. Moreover, statements
concerning future information in this press release are as of the time this press release was prepared, as mentionedabove. The Company does not have any obligation or policy whatsoever to regularly update such information.

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