November 6, 2015

Consolidated Financial Results
for the Six Months Ended September 30, 2015
(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:
Tsuneo Sasaki, Director and Senior Managing Executive Officer;
General Manager of the General Administration Division
Tel: +81-72-949-5381
Scheduled date to file Quarterly Securities Report: November 9, 2015
Scheduled date to commence dividend payments: December 4, 2015
Supplementary explanatory materials prepared:
Yes
Explanatory meeting:Yes (For analysts and institutional investors)(Millions of yen with fractional amounts discarded, unless otherwise noted.)

1. Consolidated financial results for the six months ended September 30, 2015
(from April 1, 2015 to September 30, 2015)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Six months ended
September 30, 2015
September 30, 2014

Millions of yen

Operating income%

Millions of yen

Ordinary income% Millions of yen

18,285
13.2
448
66.0
16,1460.7
270(50.4)
Note: Comprehensive income
For the six months ended September 30, 2015: ¥165 million, (81.1)%
For the six months ended September 30, 2014: ¥875 million, 26.0%

Net income
per share
Six months ended
September 30, 2015
September 30, 2014

365
533

%

(31.4)(15.4)Net income attributableto owners of the parent
Millions of yen

147
372

Diluted net income
per share

Yen

Yen

8.00
－
20.27
－
Note: Diluted net income per share is not disclosed due to the absence of latent shares with dilution effect.

(2) Consolidated financial position
As of
September 30, 2015
March 31, 2015

Total assets

Net assets

Millions of yen

Millions of yen

38,31933,932

17,26015,373

Reference: Equity
As of September 30, 2015:
As of March 31, 2015:¥15,449 million¥15,271 million

Equity ratio
%

40.3
45.0

%

(60.5)(19.2)

2. Cash dividends
Cash dividends per shareFirst quarter
Fiscal year ended March
31, 2015
Fiscal year ending March
31, 2016
Fiscal year ending March
31, 2016 (Forecasts)

Second quarter

Third quarter

Fiscal year-end

Annual

Yen

Yen

Yen

Yen

Yen

–

6.00

–

6.00

12.00

–

6.00
–

6.00

12.00

Note: Changes to most recent dividend forecasts: None

3. Consolidated financial forecasts for the fiscal year ending March 31, 2016
(from April 1, 2015 to March 31, 2016)
OperatingincomeNet sales

Fiscal year ending
March 31, 2016

(Percentages indicate year-on-year changes.)
Net income
Ordinary
Net income
incomeMillionsof yen%Millionsof yen%Millionsof yen%38,100

19.4

1,400

256.5

1,100

13.7

attributable to ownersof the parent
Millions%of yen500(18.0)

per share
Yen
27.21

Note: Changes to most recent consolidated financial forecasts: None

Notes
(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in achange in the scope of consolidation): Yes
New:
1 company, Nitta Gelatin India Ltd.
Excluded: None
Note: For details, please refer to "(1) Changes in Significant Subsidiaries During the Quarterly Period Under Review" in"2. Matters Concerning Summary Information (Notes)" on page 5 of the Attachment to this report.

(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 Restatement of Revisions” in“2. Matters Concerning Summary Information (Notes)” on page 5 of the Attachment 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 September 30, 2015
18,373,974 shares
As of March 31, 2015
18,373,974 sharesb. Number of shares of treasury stock at the end of the period
As of September 30, 2015
162 shares
As of March 31, 2015
162 sharesc. Average number of shares
For the six months ended September 30, 2015
For the six months ended September 30, 2014

18,373,812 shares
18,373,812 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 beenconcluded.

* 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 theCompany will achieve its earnings forecasts. In addition, actual business and other results may differ substantially due tovarious factors. For details on the conditions assumed and the cautionary notes and items in the financial forecasts, pleaserefer to “(3) Description of Consolidated Business Forecasts and Other Forward-looking Information” in “1. Qualitative
Information Concerning Quarterly Financial Statements” on page 5 of the Attachment 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･･･････ 5

2. Matters Concerning Summary Information (Notes)･･････････････････････････････････････ 5(1) Changes in Significant 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(4)Additional Information･･･････････････････････････････････････････････････････････ 6

3. Quarterly Consolidated Financial Statements･･･････････････････････････････････････････ 7(1) Consolidated Balance Sheets ･･････････････････････････････････････････････････････ 7(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income ･･･ 9
Consolidated Statements of Income(Second quarter consolidated cumulative accounting period)･････････････････････････････ 9
Consolidated Statements of Comprehensive Income(Second quarter consolidated cumulative accounting period)･････････････････････････････ 10(3) Consolidated Statements of Cash Flows･････････････････････････････････････････････ 11(4) Notes to Quarterly Consolidated Financial Statements･･････････････････････････････････ 13(Note Concerning Going Concern Assumption) ･･････････････････････････････････････ 13(Note Concerning Significant Changes in Shareholders’ Equity)･･････････････････････････ 13(Segment Information)･･･････････････････････････････････････････････････････････ 13

1

1. Qualitative Information Concerning Quarterly Financial Statements(1) Description of Business Results
In the first six months of the year ending March 31, 2016, uncertainty regarding the
global economic situation continued to deepen the more the Chinese economy
continued to show signs of slowing. This was despite the ongoing gradual recovery of
economies of the U.S. and other advanced nations. Meanwhile, the Japanese economy
remained on a gradual recovery trend as corporate earnings and personal consumption
continued to improve. However, this trend in Japan could conceivably be affected if theeconomies of China and other Asian emerging countries were to decline.
Nitta Gelatin has manufactured and sold gelatin in India ever since it entered themarket there in 1975 to procure raw materials for gelatin. Since then, operations in India
have become an important base for procuring raw materials and processing supplies ofHalal-certified products. In order to further integrate these operations with the Groupand strengthen the global business foundation going forward, equity-method affiliate
Nitta Gelatin India Ltd. and its local Indian affiliates Bamni Proteins Ltd. and Reva
Proteins Ltd. were consolidated as subsidiaries of Nitta Gelatin in April 2015.
As a result of the above, net sales increased 13.2% year on year to ¥18,285 million in
the first six months of the fiscal year ending March 31, 2016. Operating income
increased 66.0% to ¥448 million while ordinary income decreased 31.4% to ¥365
million. As a consequence of the ¥661 million in extraordinary income and ¥640 in
extraordinary loss the Company reported in connection with consolidating the threecompanies in India as subsidiaries and converting a subsidiary in China into an
equity-method affiliate, among other factors, net income attributable to owners of theparent decreased 60.5% year on year to ¥147 million.
The Company’s management was revamped in April 2015, and Nitta Gelatin willusher in the 100th anniversary of its founding in 2018. With the aim of setting theGroup on course to make further advancements over the next 100 years, Nitta Gelatin
has formulated a new three-year medium-term management plan with the year ending
March 31, 2016 as the starting year. (For further details of this medium-term
management plan, please refer to the press release, Nitta Gelatin Announces
Medium-term Management Plan, dated November 6, 2015.)
Segment business performance was as follows:2(a) Collagen Material BusinessIn the gelatin field, sales of edible gelatin and gelatin for capsules increased steadily inJapan. In North America, sales growth was slowed by an increase in European imports
as a result of the dollar strengthening, which drove sales prices down. However, on thewhole, the gelatin business saw a substantial increase in sales. This was in part due to a
¥1,707 million contribution to net sales resulting from the consolidation of Nitta Gelatin
India Ltd. and two other Indian affiliates as subsidiaries in April 2015.
Collagen peptide sales increased, driven by their greater adoption in general foodproducts in addition to their strong sales as health food, including from inbound demand
generated by travelers visiting Japan from abroad.
Sales of collagen casing declined due to increased competition in North America.
As a result, net sales in the segment rose 22.1% year on year to ¥13,744 million,
along with a 25.5% increase in segment profit (operating income) to ¥745 million.
(b) Formula Solution Business
Sales of food materials fell due to delays in new adoption by customers.
Adhesives sales as a whole declined year on year due to a customer in the hygiene
products market switching to a Chinese supplier and a contraction in the bookbinding
market, even though their sales for use in packaging were little changed from the firstsix months of the previous fiscal year. Profit, on the other hand, increased in line withefforts to reduce cost.
As a result, net sales in the segment were down 7.2% year on year to ¥4,540 million,
but segment profit (operating income) was up 7.6% to ¥412 million.

(2) Description of Financial Position
The consolidation of Nitta Gelatin India Ltd., Bamni Proteins Ltd., and Reva Proteins
Ltd. as subsidiaries was a major factor behind change in the financial position than at
March 31, 2015, the end of the previous fiscal year.
(a) Assets, liabilities and net assets(Assets)
Total assets amounted to ¥38,319 million at September 30, 2015, ¥4,387 million higher
than at March 31, 2015. This was mainly attributable to increases in inventories
including merchandise and finished goods, note and accounts receivable-trade, andproperty, plant and equipment.
3

(Liabilities)
Total liabilities stood at ¥21,059 million at September 30, 2015, ¥2,500 million higher
than at March 31, 2015. This was due mainly to increases in note and accounts
payable-trade, short-term loans payable, and long-term loans payable.
(Net assets)
Net assets amounted to ¥17,260 million at September 30, 2015, ¥1,886 million higher
than at March 31, 2015. This was mainly attributable to gains in foreign exchangetranslation adjustments and non-controlling interests.
As a result, the equity ratio stood at 40.3% at September 30, 2015, compared with45.0% at March 31, 2015.
(b) Cash flows
Cash and cash equivalents (“cash”) as of September 30, 2015 was ¥2,313 million, down¥289 million from March 31, 2015.
Cash flows for each activity and reasons are as follows.
(Net cash provided by operating activities)
Operating activities provided net cash of ¥659 million, compared to ¥672 million
provided in the same period in the previous fiscal year. The main contributing factors
were income before income taxes and non-controlling interests of ¥387 million,
depreciation and amortization of ¥789 million, and a loss on stepped acquisition of ¥620
million. The main components of cash used were a gain on negative goodwill of ¥502
million, increase in inventories of ¥275 million, and income taxes paid of ¥258 million.
(Net cash used in investing activities)
Investing activities used net cash of ¥879 million, compared to ¥ 1,460 million used in
the same period in the previous fiscal year. The main use of cash was ¥866 million forthe purchase of property, plant and equipment.
(Net cash used in financing activities)
Financing activities used net cash of ¥17 million, compared to they provided ¥197
million in the same period in the previous fiscal year. The main uses of cash wererepayment of long-term loans payable of ¥1,290 million and a net decrease in short-term
4loans payable of ¥302 million. The main contributor to cash was proceeds fromlong-term loans payable of ¥1,766 million.

(3) Description of Consolidated Business Forecasts and Other Forwardlooking Information
The Group’s consolidated business forecasts for the fiscal year ending March 31, 2016
are unchanged from those announced on August 6, 2015 in the “Consolidated Financial
Results for the Three Months Ended June 30, 2015.”
Actual business and other results may differ substantially from projections due tovarious factors.

2. Matters Concerning Summary Information (Notes)(1) Changes in Significant Subsidiaries During the Quarterly Period Under
Review
Equity-method affiliate Nitta Gelatin India Ltd. was consolidated as a subsidiary fromthe first quarter ended June 30, 2015, as Nitta Gelatin Inc. was deemed to be effectively
in control of it under the control or influence concept. The scope of this consolidation
included Nitta Gelatin India subsidiaries Bamni Proteins Ltd. and Reva Proteins Ltd.
While not falling under the purview of a change in specified subsidiary, consolidated
subsidiary Beijing Qiushi Collagen Casing Co., Ltd. was converted to an equity-method
affiliate from the second quarter ended September 30, 2015. This was due to a fall in
Nitta Gelatin’s shareholding ratio in the subsidiary.

(2) Application of Special Accounting Methods in the Preparation of
Quarterly Consolidated Financial Statements
None(3) Changes in Accounting Policies and Estimates, and Restatement ofRevisions(Changes in Accounting Policies)(Adoption of Accounting Standard and Guidance for Business Combinations)
Effective April 1, 2015, the Company has adopted the Accounting Standard for Business
Combinations (ASBJ Statement No. 21, September 13, 2013, hereinafter the "Business
5

Combination Accounting Standard"), Accounting Standard for Consolidated Financial
Statements (ASBJ Statement No. 22, September 13, 2013, hereinafter the "Consolidated
Accounting Standard") and Accounting Standard for Business Divestitures (ASBJ
Statement No. 7, September 13, 2013, hereinafter the "Business Divestiture AccountingStandard"). As a result, gain or loss arising from a change in the Company’s equity insubsidiaries in cases where control is retained was revised to a method recognizing themas an adjustment to capital surplus, along with recognizing the acquisition costs inconnection with business combinations as expenses in the consolidated fiscal year inwhich they arise. At the same time, for business combinations that take place on or after
April 1, 2015, the disclosure method was revised so as to restate the distribution of
acquisition cost upon provisional accounting recognition in the statements of the fiscal
year in which the combination took place. In addition, the presentation of quarterly net
income, etc. was changed, and the presentation of minority interest was changed to thepresentation of non-controlling interests. To reflect these changes, the Company has
restated the financial statements for the first six months and the full term of the previous
consolidated fiscal year.
With regard to the adoption of the Business Combination Accounting Standard andother accounting standards, the Company has adopted the Business Combination
Accounting Standard from April 1, 2015, the beginning of the first quarter ended June30, 2015, onward in accordance with the transitional treatment set forth in Article 58-2
(4) of the Business Combination Accounting Standard, Article 44-5 (4) of theConsolidated Accounting Standard, and Article 57-4 (4) of the Business Divestiture
Accounting Standard.
The effect of this change on the quarterly consolidated financial statements for thesix months ended September 30, 2015 was negligible.
(4) Additional Information(Changes in Presentation Basis)(Quarterly Consolidated Statements of Income)Rent income included in other under non-operating income in the consolidated
statements of income for the six months ended September 30, 2014 was recorded on a
separate basis due to its rising materiality in the statement of income for the six months
ended September 30, 2015. To reflect this change in presentation basis, the statement ofincome for the six-months ended September 30, 2014 was restated in the quarterly
6consolidated financial statements for the six months ended September 30, 2015.
As a result, the Company has restated the ¥47 million shown as other under
non-operating income in the consolidated statement of income for the six months ended
September 30, 2014, as rent income of ¥18 million and other of ¥29 million.

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

Fiscal 2015
(As of March 31, 2015)
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

7

2Q Fiscal 2016
(As of September 30, 2015)

2,622
6,726
4,821
1,243
2,156
470
(2)
18,038

2,343
7,265
5,215
1,705
2,421
778
(11)
19,718

4,414
4,390
2,042
10,848

4,672
5,410
4,219
14,302

69
69

367
367

3,984
990
(0)
4,974
15,89333,932

2,789
1,142
(0)
3,931
18,60038,319(Millions of yen)

Fiscal 2015
(As of March 31, 2015)
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
Provision for directors' retirement benefits
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(loss)
Valuation difference on otheravailable-for-sale securities
Deferred gains (losses) on hedges
Foreign currency translation adjustments

2Q Fiscal 2016
(As of September 30, 2015)

3,768
1,705
2,127
206
173
2,293
10,274

4,076
2,534
2,257
214
151
2,034
11,268

4,867
38
2,661
715
8,283
18,558

5,636
39
2,744
1,370
9,790
21,059

3,144
2,966
9,312
(0)
15,423

3,144
2,966
9,350
(0)
15,462

1,121

1,019

33
601

(43)
894

Remeasurements of defined benefit plans(1,908)(1,883)

Total accumulated other comprehensive loss

(152)

(12)

102
15,37333,932

1,810
17,26038,319Non-controlling interests
Total net assets
Total liabilities and net assets8(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
IncomeConsolidated Statements of Income(Second quarter consolidated cumulative accounting period)(Millions of yen)

Net sales
Cost of sales

2Q Fiscal 2015
(From April 1, 2014
to September 30, 2014)16,14613,135

2Q Fiscal 2016
(From April 1, 2015
to September 30, 2015)
18,285
14,660Gross profit on sales

3,010

3,624

Selling, general and administrative expenses

2,740

3,175

Operating income

270

448

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

0
13
18
224
58
29

8
5
21
19

Total non-operating income

344

90

71
－
9

154
7
10

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

－
24

80

172

Ordinary income

533

365

Extraordinary gains
Gain on sales of noncurrent assets－

1

Gain on negative goodwill－

502

Gain on change in equity－

157

Total extraordinary gains

－

661

18
－
18
514
148
366

19
620
640
387
249
137

(6)

(9)

372

147

Extraordinary losses
Loss on retirement of noncurrent assets
Loss on stepped acquisitions
Total extraordinary losses
Income before provision for income taxes
Income taxes
Net income
Net income (loss) attributable to non-controllinginterests
Net attributable to owners of the parent

9Consolidated Statements of Comprehensive Income(Second quarter consolidated cumulative accounting period)(Millions of yen)

Net income

2Q Fiscal 2015
(From April 1, 2014
to September 30, 2014)
366

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
Share of other comprehensive gain of
associates accounted for using equity method
Total other comprehensive income (loss)
Total comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests

10

2Q Fiscal 2016
(From April 1, 2015
to September 30, 2015)
137

207

(101)

32

(79)

304

(293)

(44)

27

10

474

509
875

27
165

884
(8)

286
(121)

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

2Q Fiscal 2015
(From April 1, 2014
to September 30, 2014)

2Q Fiscal 2016
(From April 1, 2015
to September 30, 2015)

Cash flows from operating activities
Income before provision for income taxes

514

387

Depreciation and amortization

469

789

Increase in allowance for doubtful accounts

09Decrease in provision for bonuses
Increase in provision for directors' retirement
benefits
Increase in net defined benefit liability

(12)

(22)

0

0

15

56

Interest and dividends income

(13)

(24)

Interest expenses

71

154

Foreign exchange gains (losses)

(130)

2

Equity in earnings of affiliates

(58)

7

Gain on sales of property, plant and equipment－(1)

Loss on retirement of noncurrent assets

18

19

Gain on change in equity

－

(157)

Gain on negative goodwill

－

(502)

Loss on stepped acquisitions
Increase (decrease) in notes and accounts
receivable-trade
Increase in inventories
Increase (decrease) increase in notes andaccounts payable-trade
Decrease (increase) in accrued consumption
taxes
Other, net

－

620

938

(184)

(576)

(275)

(189)

352

39

(38)

(205)

(180)

Subtotal

883

1,014

Interest and dividends income received

54

58

Interest paid

(68)

(154)

Income taxes paid

(196)

(258)

Net cash provided by operating activities

672

659

11

(Millions of yen)

2Q Fiscal 2015
(From April 1, 2014
to September 30, 2014)

2Q Fiscal 2016
(From April 1, 2015
to September 30, 2015)

Cash flows from investing activities
Payments into time deposits

(20)

(20)

Proceeds from withdrawal of time deposits

20

20

Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Purchase of insurance funds
Payments of loans receivableCollection of loans receivable
Other, net(1,432)

(866)

－

2

(13)
(3)
(2)
－
2
(10)

(8)
(3)
(2)
(0)
0
(0)

Net cash used in investing activities(1,460)

(879)

13
1,407
(1,058)
80
(118)
－
(110)

(302)
1,766
(1,290)
82
(132)
(21)
(110)

(16)

(10)

197

(17)

28

(36)

(561)
2,406

(274)
2,602

－

24

－

(38)

1,844

2,313

Cash flows from financing activities
Net increase 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
Repayments to non-controlling interests
Cash dividends paid
Cash dividends paid to non-controllinginterests
Net cash (used) provided by financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents, beginning of period
Increase in cash and cash equivalents from newly
consolidated subsidiaries
Decrease in cash and cash equivalents fromexclusion of subsidiary from consolidation
Cash and cash equivalents, end of period12(4) Notes to Quarterly Consolidated Financial Statements(Note Concerning Going Concern Assumption)
None(Note Concerning Significant Changes in Shareholders’ Equity)
None(Segment Information)
I. First half of the fiscal year ended March 31, 2015 (From April 1, 2014 to September
30, 2014)
1. Information on net sales, income and loss by reporting segment(Millions of yen)
Reporting segment

Net sales
Sales to third parties
Inter-segment sales
and transfers
Total
Segment income

Amounts in the
consolidated
financialstatements*2

Collagenmaterial
business

Formulasolutionbusiness

Total

11,253

4,892

16,146－16,146

686

－

686

(686)

－

11,940
594

4,892
383

16,833
977

(686)
(707)

16,146
270

Adjustments*1(Notes) 1. Adjustment for segment income of ¥(707) million comprises elimination ofintersegment transactions of ¥0 million and unallocated expenses of ¥(708) million.
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 by reporting
segments
No items to report13II. First half of the fiscal year ending March 31, 2016 (From April 1, 2015 to September
30, 2015)
1. Information on net sales, income and loss by reporting segment(Millions of yen)
Reporting segment

Net sales
Sales to third parties
Inter-segment sales
and transfers
Total
Segment income

Amounts in the
consolidated
financialstatements*2

Collagenmaterial
business

Formulasolutionbusiness

Total

13,744

4,540

18,285－18,285

851

－

851

(851)

－

14,595
745

4,540
412

19,136
1,158

(851)
(709)

18,285448

Adjustments*1(Notes) 1. Adjustment for segment income of ¥(709) million comprises elimination ofintersegment transactions of ¥(4) million and unallocated expenses of ¥(705) million.
2. Segment income is adjusted against the operating income recorded in the
consolidated income statement.

2. Information on reporting segment assets
Segment assets of the Collagen Material Business had increased by ¥4,048 million
at September 30, 2015, as a result of Nitta Gelatin Inc. consolidating Nitta Gelatin
India Ltd., Bamni Proteins Ltd. and Reva Proteins Ltd. as subsidiaries in the firstquarter ended June 30, 2015.
3. Information on impairment loss on noncurrent assets and goodwill by reporting
segments(Material gain on negative goodwill)
The Collagen Material Business segment recorded a ¥502 million gain on negative
goodwill in the six months ended September 30, 2015 as a result of the conversionof Nitta Gelatin India Ltd., Bamni Proteins Ltd. and Reva Proteins Ltd. as
subsidiaries within the scope of Nitta Gelatin Inc.'s consolidation.

14