August 9, 2022

Consolidated Financial Results
for the Three Months Ended June 30, 2022
(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:
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 to file Quarterly Securities Report: August 9, 2022
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 three months ended June 30, 2022
(April 1, 2022 to June 30, 2022)(1) Consolidated operating results(Percentages

indicate

year-on-yearchanges.)

Net sales
Three months ended
June 30, 2022
June 30, 2021

Millions of yen%

Operating income

Ordinary income

Net income
attributable toowners of the parent

Millions of yen

Millions of yen%

Millions of yen

866
297

191.1
(2.1)

545
213

%

9,248
22.0
680
153.5
7,581
2.3
268
(21.8)
Note: Comprehensive income
Three months ended, June 30, 2022: ¥1,406 million (240.1%)
Three months ended, June 30, 2021: ¥413 million (37.1%)

Earnings per share
Three months ended
June 30, 2022
June 30, 2021

Yen

Diluted earnings per
share
Yen

30.14
—
11.84
—
Note: Diluted earnings per share is not disclosed due to the absence of latent shares with dilution effect.

%

155.1
0.8

(2) Consolidated financial position
As ofJune 30, 2022
March 31, 2022

Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen

38,78937,41021,836
20,562

%

49.2
48.3

Reference: Equity
As of June 30, 2022: ¥19,089 million
As of March 31, 2022 ¥18,082 million

2. Cash dividends
Cash dividends per shareFirst quarter

Second quarter

Yen

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

Third quarter

Yen—

Fiscal year-end

Yen

Annual

Yen

Yen

7.00

—

7.00

14.00

7.00

—

7.00

14.00

—

Note: Changes to most recent dividend forecasts: None

3. Forecast of consolidated financial results for the fiscal year ending March 31, 2023
(April 1, 2022 to March 31, 2023)(Percentages indicate year-on-year changes.)

OperatingincomeNet sales

Six months ending
September 30, 2022
Fiscal year ending
March 31, 2023

Ordinary income

Net income
attributable toowners of theparentEarnings per
share

Millionsof yen%Millionsof yen%Millionsof yen%Millionsof yen%17,500

17.7

700

18.0

700

0.5

400

6.9

22.06

36,000

13.3

1,600

2.5

1,500

(13.5)

900

23.9

49.63

Yen

Note: Changes to most recent consolidated financial forecasts: None

Note:(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: None
(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:
Noneb. Changes in accounting policies due to reasons other than a. above: Nonec. Changes in accounting estimates: None

d. Restatement of revisions: None
(4) Number of common shares issued
a. Total number of issued shares at the end of the period (including treasury stock)
As of June 30, 2022:
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 June 30, 2022:
268,739 shares
As of March 31, 2022:
268,739 sharesc. Average number of shares
For the three months ended June 30, 2022:
For the three months ended June 30, 2021:

18,105,235 shares
18,074,507 shares* This financial report falls outside the scope of quarterly review procedures by Certified Public Accountantsor 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 “(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 to this report.

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． Quarterly Consolidated Financial Statements and Key Notes ········································ 5(1)Consolidated Balance Sheets ··············································································· 5(2)Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ··· 7
Consolidated Statements of Income (First quarter consolidated accounting period) ················ 7
Consolidated Statements of Comprehensive Income(First quarter consolidated accounting period) ························································ 8(3)Notes to Quarterly Consolidated Financial Statements ················································· 9(Note Concerning Going Concern Assumption) ························································· 9(Note Concerning Significant Changes in Shareholders’ Equity) ····································· 9(Additional Information) ···················································································· 9(Segment Information) ······················································································ 9(Subsequent Events) ······················································································· 10

11. Qualitative Information Concerning Quarterly Financial Statements(1) Description of Business Results
During the three months ended June 30, 2022, the world economy continued to experience
uncertainty amid the protraction in the situation in Ukraine. Nevertheless, there were positive
developments including easing of COVID-19 restrictions on economic activities, despite ongoingwaves of the pandemic, and a moderate economic recovery. The situation surrounding the Nitta
Gelatin Group remained challenging due to worldwide disruptions in the supply chain, soaring
raw materials and energy prices, and the rapid depreciation of the yen, among other factors.
On June 8, 2022, the Group announced a business strategy containing its vision for the next 10
years. This business strategy states the Group’s 10-year vision as “Helping improve people’squality of life with collagen” and declares as specific measures a “Shift away fromgeneral-purpose gelatin products to high-value-added collagen peptides, concentrating resources
on markets with high growth potential to improve profitability.”In the three months ended June 30, 2022, the Group worked to provide a stable supply of
products in order to meet rampant demand from customers in the Food Solutions, Health Support,
and Specialties domains, and took steps to revise product prices as appropriate. In Food Solutions,
we launched “Nitta Gelatin Professional Shop,” a members-only direct marketing website forindustrial-use products. In addition, we made efforts to increase the visibility of the Nitta Gelatinname by stepping up advertising targeting general consumers and disseminating information
using social media.
As a result of the above, net sales increased 22.0% year on year to ¥9,248 million driven bysales growth in each domain and foreign exchange effects on overseas sales. Operating income
rose 153.5% year on year to ¥680 million underpinned by sales growth overseas, ordinary income
increased 191.1% to ¥866 million on foreign exchange gains, and as a result, net income
attributable to owners of the parent increased 155.1% to ¥545 million.
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 were strong in Japan while sales also increased in North
America, leading to an increase in net sales overall.
In Japan, net sales for products for use in gummy candies continued to increase, driven bystrong sales of new products by customers. In addition, net sales of gelatin for industrial-use
soups and seasonings along with gelatin for making confectioneries and cooking increased amidrobust demand for products used by the food service industry and for making confectioneries andcooking at home. Meanwhile, net sales for convenience store delicatessen items declined due tosluggish sales by major customers.
Overseas, net sales increased buoyed by robust demand for gummy candies in North America.
As a result, overall sales in the food solutions category increased 12.9% year on year to ¥3,467
2

million.
Health Support
In the health support category, overall net sales rose amid the increase in sales of collagen peptide
for health and beauty applications overseas.
In Japan, sales increased on robust demand for gelatin for capsules, but sluggish sales ofcollagen products by customers resulted in net sales remaining largely unchanged year on year.
Overseas, net sales increased, driven by rampant demand for gelatin for capsules amid rising
health and prevention awareness during the COVID-19 pandemic in North America and India, in
addition to robust demand for collagen peptide in North America and strong sales of collagen
peptide for health and beauty applications promoting functionality in Asia.
As a result, overall sales in the health support category increased 22.9% year on year to ¥4,517
million.
Specialties
In the specialties category, overall net sales increased by 51.0% year on year to ¥1,263 million
amid higher net sales of calcium phosphate, a by-product, owing to rising demand from feed andfertilizer applications.
(2) Description of Financial Position(Assets)
Total assets amounted to ¥38,789 million at June 30, 2022, ¥1,378 million higher than at March
31, 2022. This was mainly attributable to a decrease in cash and deposits of ¥1,150 million,
compared to increases in inventories of ¥1,600 million and trade notes and accounts receivable of¥515 million.
(Liabilities)
Total liabilities stood at ¥16,952 million at June 30, 2022, ¥103 million higher than at March 31,
2022. This was mainly attributable to a decrease in other current liabilities of ¥410 million,
compared to an increase in notes and accounts payable-trade of ¥563 million.
(Net assets)
Net assets amounted to ¥21,836 million at June 30, 2022, ¥1,274 million higher than at March 31,
2022. This was mainly attributable to increases in foreign currency translation adjustments of¥598 million, retained earnings of ¥418 million, and non-controlling interests of ¥268 million.
As a result, the equity ratio stood at 49.2% at June 30, 2022 compared with 48.3% at March
31, 2022.

3

(3) Description of Consolidated Business Forecasts and Other Forward-looking
Information
The results for the three months ended June 30, 2022 exceeded the ordinary income and net
income attributable to owners of the parent as announced in the consolidated business forecasts
for the first half of the fiscal year ending March 31, 2023 on May 13, 2022 due to overseas sales
growth and other factors.
However, concerns such as a rise in raw material prices and a rise in overseas purchase costs
due to yen depreciation still persist, and at this point in time, there is no change in the
consolidated business forecasts for the first half of the fiscal year ending March 31, 2023 and thefull-year consolidated business forecasts announced on May 13, 2022.

4

2. Quarterly 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, net
Machinery, equipment and vehicles, net
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
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

5

1Q Fiscal 2023
(As of June 30, 2022)

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

1,895
7,905
6,455
1,377
4,224
614
(8)
22,464

3,409
2,474
4,532
10,416

3,494
2,537
4,649
10,681

232
275
507

244
276
521

3,363
1,775
(117)
5,021
15,94537,410

3,423
1,828
(130)
5,121
16,32438,789(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
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
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
Deferred gains on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6

1Q Fiscal 2023
(As of June 30, 2022)

2,745
2,271
1,909
171
224
3,399
10,721

3,309
2,370
1,816
304
379
2,989
11,168

3,573
1,560
992
6,126
16,848

3,191
1,615
975
5,783
16,952

3,144
2,965
10,181(179)
16,112

3,144
2,965
10,600(179)
16,531

1,231

1,238

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

88
1,138
91
2,557
2,747
21,83638,789(2) Consolidated Statements of Income and Consolidated Statements ofComprehensive Income
Consolidated Statements of Income(First quarter consolidated accounting period)(Millions of yen)Three Months Ended
June 30, 2021
(From April 1, 2021
to June 30, 2021)
7,581
6,020

Net sales
Cost of sales

Three Months Ended
June 30, 2022
(From April 1, 2022
to June 30, 2022)
9,248
6,979

Gross profit on sales

1,561

2,268

Selling, general and administrative expenses

1,292

1,587

Operating income

268

680

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

0
21
14
10
0
12

0
29
14
182
—
13

Total non-operating income

60

240

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

29
—
1

34
16
3

Total non-operating expenses

31

54

Ordinary income

297

866

Extraordinary gains
Gain on sales of noncurrent assets

—

0

—

0

0
0

—
4

Total extraordinary gains
Extraordinary losses
Loss on sale of noncurrent assets
Loss on retirement of noncurrent assets
Total extraordinary losses

04Income before provision for income taxes

297

862

Income taxes payable

43

187

Earnings per share

253

675

Net income attributable to non-controlling interests

39

130

Net income attributable to owners of the parent

213

545

7

Consolidated Statements of Income(First quarter consolidated accounting period)(Millions of yen)Three Months Ended
June 30, 2021
(From April 1, 2021
to June 30, 2021)
253

Net income
Other comprehensive income
Valuation difference on other available-for-salesecurities
Deferred gains on hedges
Foreign currency translation adjustments
Pension liability adjustment
Share of other comprehensive losses of associates
accounted
using equity method
Total otherfor
comprehensive
incomeTotal
comprehensive income
Comprehensive
income attributable to:
Owners of the parent
Non-controlling interests

8

Three Months Ended
June 30, 2022
(From April 1, 2022
to June 30, 2022)
675

120

7

(27)
(4)
19
51
159
413

16
706
(65)
64
730
1,406

403
9

1,133
273

(3) Notes to Quarterly Consolidated Financial Statements(Note Concerning Going Concern Assumption)
None(Note Concerning Significant Changes in Shareholders’ Equity)
None(Additional Information)
There have been no material changes to the assumptions regarding the impact of the
COVID-19 pandemic set out in the (Material Accounting Estimates) of the Securities Reportfor the previous fiscal year.
(Segment Information)
I. Three Months Ended June 30, 2021
(From April 1, 2021 to June 30, 2021)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.
II. Three Months Ended June 30, 2022
(From April 1, 2022 to June 30, 2022)
The Nitta Gelatin Group’s collagen business has become the Company’s only reporting
segment, so information is omitted.

9

(Subsequent Events)
The Company disposed of treasury stock as follows based on a resolution at the Board of
Directors meeting held on July 21, 2022 regarding the disposal of treasury stock as restricted
share based remuneration.
1. Summary of disposal(1) Disposal dateAugust 5, 2022

(2) Class and number of shares for
disposal

The Company’s common stock; 27,800 shares(3) Disposal price¥619 per share(4) Total disposal amount¥17,208,200(5) Eligible persons for the allotmentof shares, number of eligible
persons, and number of shares tobe allocatedDirectors (excluding outside directors):
persons; 20,800 shares
Executive Officers: 5 persons; 7,000 shares(6) Other

The Company has submitted a securities
notification regarding this disposal of treasury
stock pursuant to the Financial Instruments andExchange Act.

5

2. Purpose and reason of disposal
The Company passed a resolution at the meeting of the Board of Directors held on June 1,
2021 to introduce a new restricted share based remuneration plan (“the Plan”) for theCompany’s directors (excluding outside directors; below, “Eligible Directors”) and Executive
Officers (below, “Eligible Directors, etc.” to collectively refer to both Eligible Directors andExecutive Officers) in order to increase incentives more so than before toward the sustained
enhancement of corporate value and to further share value with shareholders.
In addition, at the 82nd Ordinary General Meeting of Shareholders held on June 29, 2021,
approval was obtained pursuant to the Plan regarding the establishment of an annual cap of 80
million for the total monetary remuneration paid to Eligible Directors, a cap of 80,000 shareson the number of restricted shares allocated in each fiscal year to Eligible Directors, and theperiod from the issuance of restricted shares to the day of retirement from the position ofeither the Company’s director, Executive Officer, or employee as the restriction period of therestricted shares.
For the restricted share based remuneration during the period from the 83rd Ordinary
General Meeting of Shareholders held on June 28, 2022 to the 84th Ordinary General Meetingof Shareholders that is scheduled to be held in June 2023, at the meeting of the Board of
Directors held on July 21, 2022, a resolution was passed to pay monetary remuneration claimsof 17,208,200 to the Eligible Directors, etc., and allot 27,800 of the Company’s common stock10

as specified restricted shares by having the Eligible Directors, etc. pay all said monetary
remuneration claims according to the method of in-kind contribution.

11