February 5, 20014

Con
nsolidateed Finanncial Ressults
for the Ninee Month
hs Endedd Decembber 31, 22013(Japanese A
Accounting
g Standards))
Listed Comppany: Nitta Gelatinn Inc.
Naame of the L
Listing:First Section of T
Tokyo Stocck ExchangeeStoock code:
4977
UR
RL:
http:///www.nittaa-gelatin.co..jp
Reepresentativve:
Norimmichi Soga,, Representaative Directtor and Pressident
Co
ontact Persoon:
Tsun
neo Sasaki, D
Director andd Senior Maanaging Exeecutive Offficer;
Geneeral Manageer of the General Administration D
Division
Tel: +81-72-949+
9-5381
Sccheduled datte to file Quuarterly Seccurities Repoort: Febru
uary 10, 201
14
Sccheduled datte to commence divideend payment
nts: Su
upplementarry explanatoory materialls prepared::NoEx
xplanatory mmeeting:
No(Milliions of yen with fractional amounts discaarded, unless otherwise notted.)

1. Consolidatted financiaal results foor the nine months ennded Decem
mber 31, 20013(from Apriil 1, 2013 too December 31, 2013))(1)) Consolidaated operatting resultss(Perccentages indiicate year-on
n-year changees.)
Net salees
Nine
N months ended
DecemberD
31,, 2013
DecemberD
31,, 2012

Operating in
ncome

OrdinaryO
incoome

Net income

Millions of yen%

MMillions of yen%

MillionsMof yen%Millions of yen%

24,44921,310

14.7
―

876
1,180

(25.7)
―

1,059
1,443

(26.6)
―

754
1,056

(228.6)―No
ote: Compreheensive incomee
For the niine months ennded Decembeer 31, 2013: ¥¥1,451 millionn (15.4%)
For the niine months ennded Decembeer 31, 2012: ¥¥1,257 millionn (-%)Net income
per share
Nine
N months ended
DecemberD
31,, 2013
DecemberD
31,, 2012

Yeen

Dilutedd net income
peer share
Yeen

43.5
59
―
67.0
02
―
No
ote: Consolidaated financial results for the nine montths ended Deecember 31, 20122
were addjusted retroaactively, applyying
accountinng policies thaat were changeed in line withh revisions off accounting sttandards. Accoordingly, the Company
C
has not
disclosedd year-on-yearr comparisons between resuults for the nin
ne months ended December 31, 2012 andd 2011.
Diluted nnet income perr share is not disclosedddue to the absence of latent shaares with diluttion effect.

(2) Consolidated financial position
Total assets
As ofDecember 31, 2013
March 31, 2013

Net assets

Equity ratio

Millions of yen

Millions of yen%

30,62525,19014,069
9,724

45.5
38.0

Reference: Equity
As of December 31, 2013:¥13,926 million
As of March 31, 2013:¥9,577 million
Note: The consolidated financial position as of March 31, 2013 was adjusted retroactively, applying accounting policies thatwere changed in line with revisions of accounting standards.

2. Cash dividends
Cash dividends per shareFirst quarter

Second quarter

Third quarter

Fiscal year-end

Annual

Yen

Yen

Yen

Yen

Yen

–

6.00

–

8.00

14.00

–

6.00

–
6.00

12.00

Fiscal year ended March 31,
2013
Fiscal year ending March
31, 2014
Fiscal year ending March
31, 2014 (Forecasts)

Note: Changes to most recent dividend forecasts: None

3. Consolidated financial forecasts for the fiscal year ending March 31, 2014
(from April 1, 2013 to March 31, 2014)
Net sales

Fiscal year ending
March 31, 2014

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

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

32,300

12.3

1,000

(37.3)

1,100(44.4)

700(54.1)

39.87

Note: Changes to most recent consolidated financial forecasts: Yes
Year-on-year changes to the consolidated financial forecasts for the fiscal year ended March 31, 2013 were adjusted
retroactively, applying accounting policies that were changed in line with revisions of accounting standards.
In addition, Nitta Gelatin Inc. issued common stock by way of public subscription for payment on July 29, 2013, andthird-party allocation for payment on August 28, 2013. Consequently, net income per share in this report was restated toinclude the increase in common stock of 2,400,000 shares from the public subscription, and 203,900 shares from thethird-party allocation.
For details on the revision of consolidated business forecasts, please refer to the press release entitled Notice Concerning
Revision of Consolidated Business Forecasts (Dated February 5, 2014).

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) 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 policies 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: No
d. Restatement of revisions: No
Note: For details, please refer to “(3) 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, 2013
18,373,974 shares
As of March 31, 2013
15,770,074 sharesb. Number of shares of treasury stock at the end of the period
As of December 31, 2013162 shares
As of March 31, 2013162 sharesc. Average number of shares
For the nine months ended December 31, 2013
For the nine months ended December 31, 2012

17,311,862 shares
15,769,912 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 “(3)Description of Consolidated Business Forecasts and Other Forward-looking Information” in “1.
Qualitative Information Concerning Quarterly Financial Statements” on page 4 of the Attachment
Contents to this report.

Attachment Contents
1. Qualitative Information Concerning Quarterly Financial Statements･･･････････････････････ 2(1) Description of Business Results･････････････････････････････････････････････････････ 2(2) Description of Financial Position････････････････････････････････････････････････････ 3(3) Description of Consolidated Business Forecasts and Other Forward-looking Information････････ 4

2. Matters Concerning Summary Information (Notes)･･････････････････････････････････････ 5(1) Significant Changes in Subsidiaries During the Quarterly Period Under Review･･･････････････ 5(2) Application of Special Accounting Methods
in the Preparation of Quarterly Consolidated Financial Statements･････････････････････････ 5(3) 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
Consolidated Statements of Income
Third quarter consolidated cumulative accounting period･････････････････････････････････ 8
Consolidated Statements of Comprehensive Income
Third quarter consolidated cumulative accounting period･････････････････････････････････ 9(3) Notes to Quarterly Consolidated Financial Statements･･･････････････････････････････････10(Note Concerning Going Concern Assumption) ･･･････････････････････････････････････ 10(Note Concerning Significant Changes in Shareholders’ Equity)･･････････････････････････ 10(Segment Information)･･･････････････････････････････････････････････････････････ 10(Subsequent Events)･････････････････････････････････････････････････････････････ 11

1

1. Qualitative Information Concerning Quarterly Financial Statements
As stated in "(3) Changes in Accounting Policies and Estimates, and Restatement ofRevisions" in "2. Matters Concerning Summary Information (Notes)," certain overseas
affiliate companies started applying the revised IAS 19 from the three months ended
June 30, 2013. This change in accounting policy was also applied retroactively to restate
financial results from the previous fiscal year in year-on-year comparisons.
(1) Description of Business Results
In the first nine months of the year ending March 31, 2014, the global economy
continued to recover gradually despite continuing uncertainty due to issues such asfederal budget difficulties in the United States, concerns of a slowdown among
emerging economies, and the future development of the European debt problem.
Meanwhile, the Japanese economy also continued to recover gradually with the yen
depreciating and stock prices rising, as a result of government policies and the Bank ofJapan’s monetary easing. Nevertheless, the situation remains unclear, with concerns
over the impact of a downturn in the global economy.
Given the situation, Nitta Gelatin faced challenging business conditions including
rising prices for gelatin and other raw materials for the Group, while energy prices andthe cost of import procurements increased in Japan due to the yen’s depreciation.
Against this backdrop, the Group worked to provide products and services a stepahead of customers' expectations, develop new products, cultivate new markets andreduce costs under the slogan of "Amaze the World!" and a basic strategy to "Win out!!
in growing Asian market".
Meanwhile, the Company issued 2,603,900 shares of common stock by way of public
subscription in July and third-party allocation in August 2013. The resulting ¥3,135
million in total proceeds was used to secure ample funds for capital expenditures and to
improve the Group’s financial position.
As a result, in the first nine months of the fiscal year ending March 31, 2014, net
sales increased 14.7% year on year to ¥24,449 million. By contrast, operating income
fell 25.7% to ¥876 million, mainly due to an increase in the cost of sales, ordinary
income was down 26.6% to ¥1,059 million and net income decreased 28.6% to ¥754
million.

2

Segment business performance was as follows:(a) Collagen Material BusinessIn the gelatin field, sales of mainly edible gelatin increased in Japan. Profit margins
declined, however, as a result of rising raw material prices worldwide and insufficient
progress in passing along increased import procurement costs due to the yen’s sharp
depreciation. In overseas markets, sales increased owing to price revisions backed bybuoyant demand.
Collagen peptide sales increased year on year in Japan and Asia overall, but
profitability declined because of the rise in raw material prices.
Collagen casing saw sluggish sales volume growth, although monetary sales
increased with the yen’s depreciation. Collagen casing quality issues that arose during
the first six-months of the fiscal year are gradually being resolved, but the losses
incurred outweighed the increase in sales.
As a result, net sales in the segment were up 22.4% year on year to ¥16,636 million
and segment income (operating income) was down 9.9% to ¥1,171 million.
(b) Formula Solution Business
Sales of food materials on the whole were sluggish. This was mainly because of
lackluster sales for delicatessen items, although sales for ingredients in confectionary
and desserts, and for ham and sausages were strong. Earnings declined as selling,
general and administrative expenses increased due to conducting aggressive sales
promotions.
In adhesives, overall sales were mainly flat due to sluggish sales of hot-meltadhesives. Earnings declined as selling, general and administrative expenses increased
due to stronger efforts to develop new customers for sealants.
As a result, net sales in the segment were up 1.2% year on year to ¥7,812 million.
Segment income (operating income) was down 19.9% to ¥719 million.
(2) Description of Financial Position(Assets)
Total assets amounted to ¥30,625 million as of December 31, 2013, ¥5,434 million
higher than as of March 31, 2013. This was mainly attributable to increases of ¥2,793
million in notes and accounts receivable-trade, ¥1,407 million in property, plant and3equipment, and ¥743 million in inventories including merchandise and finished goods.
These increases were partially offset by a decrease of ¥59 million in cash and deposits.
(Liabilities)
Total liabilities stood at ¥16,555 million as of December 31, 2013, ¥1,090 million
higher than as of March 31, 2013. This was mainly attributable to increases of ¥401
million in notes and accounts payable-trade, ¥874 million in short-term loans payableand ¥55 million in long-term loans payable (current portion included). These increases
were partially offset by a decrease of ¥200 million in the current portion of bonds.
(Net assets)
Net assets were ¥14,069 million as of December 31, 2013, ¥4,344 million higher than asof March 31, 2013.
This was mainly attributable to a ¥518 million increase in retained earnings, andincreases of ¥1,567 million each in capital stock and capital surplus resulting from theissuance of common stock by way of public subscription and third-party allocation.
As a result, the equity ratio stood at 45.5% as of December 31, 2013, compared to
38.0% as of March 31, 2013.

(3) Description of Consolidated Business Forecasts and Other Forward-looking
Information
In light of recent performance trends, the Group has revised its consolidated business
forecasts for the fiscal year ending March 31, 2014, which were announced in the"Consolidated Financial Results for the Six Months Ended September 30, 2013
(Japanese Accounting Standards)" on November 5, 2013.
Please refer to the press release entitled Notice Concerning Revision of Consolidated
Business Forecasts (Dated February 5, 2014) for details of the revision.
Actual business and other results may differ substantially from projections due tovarious factors.

4

2. Matters Concerning Summary Information (Notes)(1) Significant Changes in Subsidiaries During the Quarterly Period Under Review
None(2) Application of Special Accounting Methods in the Preparation of Quarterly
Consolidated Financial Statements
None(3) Changes in Accounting Policies and Estimates, and Restatement of Revisions
Certain overseas affiliate companies started applying IAS 19 Employee Benefits (June16, 2011) from the three months ended June 30, 2013. This change in accounting policy
was also applied retroactively to restate results for the nine months ended December 31,
2012 and as of March 31, 2013 in the Quarterly Consolidated Financial Statements.
As a result, net income for the nine months ended December 31, 2012 decreased ¥11
million after restatement. Moreover, net assets as of April 1, 2012 was restated ¥153
million lower to mainly reflect the accumulative impact of this accounting policychange.

5

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

Fiscal 2013
(As of March 31, 2013)

3Q Fiscal 2014
(As of December 31, 2013)

2,278,659
5,839,913
4,404,789
918,045
1,508,837
385,762(16,176)
15,319,831

2,219,104
8,633,415
4,825,776
1,108,549
1,640,478
582,829(14,103)
18,996,049

2,792,208
1,343,676
2,151,627
6,287,512

2,885,065
1,434,302
3,375,343
7,694,711

48,696
48,696

46,60346,603

2,768,381
767,704(1,809)3,534,277
9,870,486
25,190,318

3,198,171
691,662(2,004)
3,887,830
11,629,144
30,625,194

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 2013
(As of March 31, 2013)

3Q Fiscal 2014
(As of December 31, 2013)

3,736,664
1,145,432
2,068,482
200,000
81,273
220,847
2,184,378
9,637,079

4,138,006
2,020,280
2,147,739－
165,251
87,388
1,957,441
10,516,108

3,142,014
2,276,795
35,422
374,3445,828,575
15,465,655

3,118,335
2,321,188
36,247563,851
6,039,622
16,555,731

1,577,121
1,398,633
8,194,375(68)
11,170,062

3,144,929
2,966,442
8,712,595(68)
14,823,898

499,868

732,760

27,858(667,634)

7,560(122,170)(1,452,870)(1,516,045)(1,592,778)(897,895)

147,379
9,724,663
25,190,318

143,459
14,069,462
30,625,194

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
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 (losses) 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 of Comprehensive Income
Consolidated Statements of Income(Third quarter consolidated cumulative accounting period)(Thousands of yen)

3Q Fiscal 2013
(From April 1, 2012
to December 31, 2012)
21,310,129
16,376,575

3Q Fiscal 2014
(From April 1, 2013
to December 31, 2013)
24,449,332
19,551,097

Gross profit on sales

4,933,553

4,898,234

Selling, general and administrative expenses

3,752,619

4,021,373

Operating income

1,180,933

876,860

Non-operating income
Interest income
Dividend income
Foreign exchange gains
Equity in earnings of affiliates
Other

673
18,85663,868238,158
75,944

4,478
19,268
178,701
69,30958,548

Total non-operating income

397,500

330,306

112,977－
21,870107,601
23,385
16,875

134,847

147,862

1,443,586

1,059,304

15,701－－
88,39315,701

88,393

9,165
15,177
24,34315,802－15,802

1,434,944

1,131,896

374,4121,060,531
3,657
1,056,873

387,177
744,718(9,903)754,622Net sales
Cost of sales

Non-operating expenses
Interest expenses
Public offering expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Guarantees received
Total extraordinary income
Extraordinary losses
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
Total extraordinary losses
Income before income taxes and minority
interests
Income taxes
Income before minority interests
Minority interests in income (loss)
Net income8Consolidated Statements of Comprehensive Income(Third quarter consolidated cumulative accounting period)(Thousands of yen)

Income before minority interests

3Q Fiscal 2013
(From April 1, 2012
to December 31, 2012)
1,060,531

3Q Fiscal 2014
(From April 1, 2013
to December 31, 2013)
744,718(21,229)

232,973

16,103(12,022)230,291

543,252(29,831)(63,174)

2,016

5,716

197,350
1,257,881

706,746
1,451,465

1,255,065
2,816

1,449,505
1,959

Other comprehensive income (loss)
Valuation difference on otheravailable-for-sale securities
Deferred losses on hedges
Foreign currency translation adjustments
Pension liability adjustment of foreignsubsidiaries
Share of other comprehensive income ofassociates accounted for using equity method
Total other comprehensive income (loss)
Total comprehensive income
Comprehensive income attributable to:
Owners of the parent
Minority interests9(3) Notes to Quarterly Consolidated Financial Statements(Note Concerning Going Concern Assumption)
None(Note Concerning Significant Changes in Shareholders’ Equity)
Nitta Gelatin, Inc. issued common stock by way of public subscription for payment
on July 29, 2013, and third-party allocation for payment on August 28, 2013. This
increased capital stock and capital surplus by ¥1,567 million each during the six
months ended September 30, 2013. As a result, the Company’s capital stock andcapital surplus stood at ¥3,144 million and ¥2,966 million, respectively, as ofDecember 31, 2013.
(Segment Information)
I. First nine months of the fiscal year ended 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
1,300,201

7,722,559
897,393

22,313,058
2,197,594(1,002,929)(1,016,660)

21,310,129
1,180,933(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 report10II. First nine months of the fiscal year ending March 31, 2014 (From April 1, 2013
to December 31, 2013)
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

16,636,438

7,812,893

24,449,332－

24,449,332

1,101,271－

1,101,271(1,101,271)－

17,737,710
1,171,494

7,812,893
719,181

25,550,604
1,890,675(1,101,271)(1,013,814)

24,449,332
876,860(Notes) 1. Adjustment for segment income of -¥1,013,814 thousand comprises
elimination of intersegment transactions of ¥2,394 thousand andunallocated expenses of ¥1,016,208 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 report
3. Matters Concerning Changes in Reporting Segments
Certain overseas affiliate companies started applying IAS 19 Employee
Benefits (June 16, 2011) from the three months ended June 30, 2013. Thischange in accounting policy was also applied retroactively to restate results
for the nine months ended December 31, 2012 in the Quarterly Consolidated
Financial Statements.
As a result, segment income for Collagen Material Business for the ninemonths ended Deceber 31, 2012 decreased by ¥14,998 thousand after
restatement.
(Subsequent Events)
No items to report11